N-Q 1 a_globalequity.htm PUTNAM GLOBAL EQUITY FUND a_globalequity.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY



Investment Company Act file number: (811-01403)
Exact name of registrant as specified in charter: Putnam Global Equity Fund
Address of principal executive offices: One Post Office Square, Boston, Massachusetts 02109
Name and address of agent for service: Robert T. Burns, Vice President
One Post Office Square
Boston, Massachusetts 02109
Copy to:         John W. Gerstmayr, Esq.
Ropes & Gray LLP
800 Boylston Street
Boston, Massachusetts 02199-3600
Registrant’s telephone number, including area code: (617) 292-1000
Date of fiscal year end: October 31, 2013
Date of reporting period: July 31, 2013



Item 1. Schedule of Investments:













Putnam Global Equity Fund

The fund's portfolio
7/31/13 (Unaudited)
COMMON STOCKS (98.5%)(a)
Shares Value
Aerospace and defense (1.2%)
European Aeronautic Defence and Space Co. NV (France) 92,349 $5,533,189
Northrop Grumman Corp. 55,800 5,136,948
10,670,137
Airlines (1.3%)
Copa Holdings SA Class A (Panama) 25,100 3,493,167
Japan Airlines Co., Ltd. (Japan) 71,000 3,770,810
Turk Hava Yollari Anonim Ortakligi (THY) (Turkey) 954,487 4,007,779
11,271,756
Automobiles (3.4%)
Nissan Motor Co., Ltd. (Japan) 930,400 9,759,175
Tesla Motors, Inc.(NON)(S) 34,900 4,686,372
Toyota Motor Corp. (Japan) 195,800 11,938,781
Yamaha Motor Co., Ltd. (Japan) 258,800 3,478,509
29,862,837
Beverages (0.5%)
Britvic PLC (United Kingdom) 547,193 4,527,509
4,527,509
Biotechnology (1.0%)
Celgene Corp.(NON) 61,100 8,973,146
8,973,146
Building products (1.1%)
Fortune Brands Home & Security, Inc. 105,800 4,370,598
Masco Corp. 130,600 2,679,912
Owens Corning, Inc.(NON) 50,900 2,010,041
9,060,551
Capital markets (3.0%)
Blackstone Group LP (The) 229,691 5,179,532
Charles Schwab Corp. (The) 459,400 10,148,146
Morgan Stanley 391,500 10,652,715
25,980,393
Chemicals (4.4%)
Airgas, Inc. 34,400 3,550,424
Axiall Corp. 74,900 3,301,592
Monsanto Co. 180,300 17,810,034
Sherwin-Williams Co. (The) 24,217 4,217,875
Solvay SA (Belgium) 23,591 3,188,639
Tronox, Ltd. Class A 199,800 4,337,658
Zeon Corp. (Japan) 197,000 2,142,835
38,549,057
Commercial banks (5.6%)
Banco Popular Espanol SA (Spain)(NON) 637,026 2,786,822
Barclays PLC (United Kingdom) 3,414,939 14,962,407
Credicorp, Ltd. (Peru) 38,500 4,573,415
Erste Group Bank AG (Czech Republic) 142,867 4,317,943
Grupo Financiero Banorte SAB de CV (Mexico) 806,600 5,088,001
Regions Financial Corp. 356,300 3,566,563
Societe Generale SA (France) 74,340 2,970,181
UniCredit SpA (Italy) 1,077,758 5,863,868
Zions Bancorp. 141,200 4,185,168
48,314,368
Commercial services and supplies (0.4%)
Regus PLC (United Kingdom) 1,073,287 3,019,129
3,019,129
Communications equipment (0.2%)
Polycom, Inc.(NON) 188,005 1,797,328
1,797,328
Computers and peripherals (1.5%)
Apple, Inc. 20,100 9,095,250
Gemalto NV (Netherlands)(S) 34,366 3,586,034
12,681,284
Construction materials (0.7%)
HeidelbergCement AG (Germany) 81,352 6,247,799
6,247,799
Consumer finance (0.3%)
Credit Saison Co., Ltd. (Japan) 123,800 2,783,003
2,783,003
Containers and packaging (1.2%)
MeadWestvaco Corp. 146,000 5,394,700
Sealed Air Corp. 188,300 5,129,292
10,523,992
Diversified financial services (7.6%)
Bank of America Corp. 1,340,100 19,565,460
CME Group, Inc. 205,300 15,188,094
ING Groep NV (Netherlands)(NON) 989,188 10,094,157
JPMorgan Chase & Co. 372,600 20,764,998
65,612,709
Diversified telecommunication services (1.1%)
CenturyLink, Inc. 260,700 9,346,095
9,346,095
Electrical equipment (0.5%)
Schneider Electric SA (France) 58,591 4,654,760
4,654,760
Electronic equipment, instruments, and components (0.7%)
Hitachi, Ltd. (Japan) 878,000 5,900,562
5,900,562
Energy equipment and services (2.2%)
Ezion Holdings, Ltd. (Singapore) 4,386,000 7,661,738
Halliburton Co. 198,900 8,988,291
Petrofac, Ltd. (United Kingdom) 107,844 2,160,906
18,810,935
Food and staples retail (0.3%)
CP ALL PCL (Thailand) 2,467,600 2,818,425
2,818,425
Health-care equipment and supplies (0.5%)
Olympus Corp. (Japan)(NON) 150,000 4,594,526
4,594,526
Health-care providers and services (4.5%)
Aetna, Inc. 151,049 9,692,814
Capital Senior Living Corp.(NON) 196,253 4,521,669
Catamaran Corp.(NON) 203,400 10,739,520
Emeritus Corp.(NON) 181,558 4,210,330
UnitedHealth Group, Inc. 130,800 9,528,780
38,693,113
Hotels, restaurants, and leisure (2.0%)
Compass Group PLC (United Kingdom) 385,193 5,276,978
Penn National Gaming, Inc.(NON) 80,200 4,009,198
Thomas Cook Group PLC (United Kingdom)(NON) 2,450,903 5,707,383
TUI Travel PLC (United Kingdom) 463,467 2,687,872
17,681,431
Household durables (3.7%)
Alpine Electronics, Inc. (Japan) 198,900 1,956,294
Coway Co., Ltd. (South Korea) 84,359 4,505,454
Hovnanian Enterprises, Inc. Class A(NON)(S) 601,100 3,215,885
Lennar Corp. Class A 49,300 1,669,791
Persimmon PLC (United Kingdom) 158,564 2,994,149
PulteGroup, Inc.(NON) 237,100 3,942,973
Standard Pacific Corp.(NON) 414,735 3,392,532
Taylor Morrison Home Corp. Class A(NON) 160,573 3,890,684
Taylor Wimpey PLC (United Kingdom) 1,671,121 2,701,792
Techtronic Industries Co. (Hong Kong) 1,579,500 3,865,453
32,135,007
Independent power producers and energy traders (0.3%)
NRG Energy, Inc. 95,900 2,572,038
2,572,038
Insurance (4.9%)
Admiral Group PLC (United Kingdom) 138,215 2,955,777
American International Group, Inc.(NON) 256,023 11,651,607
Aon PLC 52,600 3,550,500
Assured Guaranty, Ltd. 170,200 3,683,128
Genworth Financial, Inc. Class A(NON) 279,000 3,624,210
Hartford Financial Services Group, Inc. (The) 143,300 4,422,238
Marsh & McLennan Cos., Inc. 92,300 3,864,601
Porto Seguro SA (Brazil) 186,500 2,100,971
Prudential PLC (United Kingdom) 362,301 6,410,238
42,263,270
Internet and catalog retail (0.3%)
HomeAway, Inc.(NON) 73,500 2,213,085
2,213,085
Internet software and services (5.3%)
eBay, Inc.(NON) 185,400 9,583,326
Facebook, Inc. Class A(NON) 165,200 6,084,316
Google, Inc. Class A(NON) 13,403 11,896,503
Telecity Group PLC (United Kingdom) 369,655 5,008,356
Yahoo!, Inc.(NON) 336,200 9,443,858
Yandex NV Class A (Russia)(NON) 107,381 3,489,886
45,506,245
IT Services (2.0%)
Computer Sciences Corp. 76,400 3,641,224
Visa, Inc. Class A 79,300 14,036,893
17,678,117
Leisure equipment and products (0.6%)
Brunswick Corp. 132,200 4,990,550
4,990,550
Machinery (0.9%)
Volvo AB Class B (Sweden) 546,223 8,034,325
8,034,325
Media (2.6%)
Atresmedia Corp de Medios de Comunicaion S.A. (Spain)(S) 459,678 4,791,865
CBS Corp. Class B 87,100 4,602,364
DISH Network Corp. Class A 214,700 9,586,355
Global Mediacom Tbk PT (Indonesia) 17,398,500 3,893,607
22,874,191
Multiline retail (0.1%)
Mitra Adiperkasa Tbk PT (Indonesia) 2,015,000 1,137,144
1,137,144
Oil, gas, and consumable fuels (7.8%)
BG Group PLC (United Kingdom) 456,335 8,259,388
Cabot Oil & Gas Corp. 35,100 2,661,282
Cairn Energy PLC (United Kingdom)(NON) 398,588 1,629,110
Energy Transfer Equity L.P. 56,200 3,750,788
EXCO Resources, Inc. 471,600 4,088,772
Genel Energy PLC (Jersey)(NON) 380,764 5,550,614
HRT Participacoes em Petroleo SA (Brazil)(NON) 1,317,693 976,133
Kodiak Oil & Gas Corp.(NON) 732,500 7,112,575
Marathon Oil Corp. 291,400 10,595,304
Noble Energy, Inc. 125,900 7,867,491
Origin Energy, Ltd. (Australia) 193,158 2,074,759
Royal Dutch Shell PLC Class A (United Kingdom) 389,507 13,289,556
67,855,772
Pharmaceuticals (4.7%)
Astellas Pharma, Inc. (Japan) 146,700 7,866,153
AstraZeneca PLC (United Kingdom) 125,306 6,357,739
Bristol-Myers Squibb Co. 106,900 4,622,356
Sanofi (France) 202,792 21,724,833
40,571,081
Real estate management and development (2.1%)
BR Malls Participacoes SA (Brazil) 450,400 3,991,973
BR Properties SA (Brazil) 471,600 3,907,002
CBRE Group, Inc. Class A(NON) 101,000 2,340,170
Forestar Group, Inc.(NON) 178,418 3,855,613
Iguatemi Empresa de Shopping Centers SA (Brazil) 404,541 4,078,481
18,173,239
Road and rail (0.4%)
Localiza Rent a Car SA (Brazil) 233,100 3,320,731
3,320,731
Semiconductors and semiconductor equipment (2.6%)
Micron Technology, Inc.(NON) 472,400 6,259,300
Samsung Electronics Co., Ltd. (South Korea) 10,988 12,519,429
Sumco Corp. (Japan) 383,300 3,386,319
22,165,048
Software (0.3%)
Fidessa Group PLC (United Kingdom) 75,456 2,294,754
2,294,754
Specialty retail (5.9%)
Home Depot, Inc. (The) 154,500 12,210,135
Industria de Diseno Textil (Inditex) SA (Spain) 71,157 9,534,873
Lowe's Cos., Inc. 388,900 17,337,162
Office Depot, Inc.(NON) 1,104,800 4,783,784
Sears Hometown and Outlet Stores, Inc.(NON) 61,950 2,699,162
Tile Shop Holdings, Inc.(NON) 149,082 4,238,401
50,803,517
Textiles, apparel, and luxury goods (0.7%)
Luxottica Group SpA (Italy) 113,422 6,062,825
6,062,825
Thrifts and mortgage finance (0.8%)
Radian Group, Inc. 521,000 7,320,050
7,320,050
Tobacco (4.3%)
Japan Tobacco, Inc. (Japan) 695,500 24,329,359
Philip Morris International, Inc. 149,200 13,305,656
37,635,015
Trading companies and distributors (1.9%)
HD Supply Holdings, Inc.(NON) 373,600 7,987,568
Mitsubishi Corp. (Japan) 281,600 5,145,362
W.W. Grainger, Inc. 11,300 2,962,182
16,095,112
Water utilities (0.4%)
United Utilities Group PLC (United Kingdom) 319,241 3,509,689
3,509,689
Wireless telecommunication services (0.7%)
SoftBank Corp. (Japan) 91,000 5,799,612
5,799,612
Total common stocks (cost $750,846,507) $853,385,262

U.S. TREASURY OBLIGATIONS (—%)(a)
Principal amount Value
U.S. Treasury Bonds 5s, May 15, 2037(i) $91,000 $114,603
Total U.S. treasury Obligations (cost $114,603) $114,603

SHORT-TERM INVESTMENTS (2.2%)(a)
Principal amount/shares Value
Putnam Cash Collateral Pool, LLC 0.13%(d) 9,989,788 $9,989,788
Putnam Short Term Investment Fund 0.02%(AFF) 4,792,197 4,792,197
SSgA Prime Money Market Fund 0.02%(P) 920,000 920,000
U.S. Treasury Bills zero %, February 6, 2014(i) $141,000 140,944
U.S. Treasury Bills with an effective yield of 0.15%, February 6, 2014 190,000 189,930
U.S. Treasury Bills with effective yields ranging from 0.12% to 0.14%, March 6, 2014 245,000 244,897
U.S. Treasury Bills with effective yields ranging from 0.10% to 0.13%, May 29, 2014(SEGSF) 840,000 839,473
U.S. Treasury Bills with effective yields ranging from 0.10% to 0.12%, May 1, 2014(SEGSF) 510,000 509,700
U.S. Treasury Bills with effective yields ranging from 0.09% to 0.11%, April 3, 2014(SEGSF) 1,854,000 1,853,117
Total short-term investments (cost $19,479,156) $19,480,046

TOTAL INVESTMENTS
Total investments (cost $770,440,266)(b) $872,979,911













FORWARD CURRENCY CONTRACTS at 7/31/13 (aggregate face value $189,228,959) (Unaudited)


Unrealized
Contract Delivery Aggregate appreciation/
Counterparty Currency type date Value face value (depreciation)
Barclays Bank PLC
British Pound Sell 9/18/13 $2,303,504 $2,324,723 $21,219
Hong Kong Dollar Buy 8/22/13 7,240,336 7,238,137 2,199
Japanese Yen Sell 8/22/13 1,380,583 1,395,635 15,052
Norwegian Krone Sell 9/18/13 5,585,129 5,647,213 62,084
Singapore Dollar Sell 8/22/13 433,496 428,638 (4,858)
Swedish Krona Buy 9/18/13 1,950,139 1,936,163 13,976
Swiss Franc Buy 9/18/13 6,739,815 6,597,710 142,105
Citibank, N.A.
Australian Dollar Buy 10/18/13 5,635,397 5,782,434 (147,037)
Canadian Dollar Buy 10/18/13 901,323 881,235 20,088
Danish Krone Buy 9/18/13 3,077,661 3,025,448 52,213
Euro Buy 9/18/13 5,672,453 5,576,706 95,747
Japanese Yen Sell 8/22/13 5,093,563 5,172,214 78,651
Singapore Dollar Buy 8/22/13 523,909 540,358 (16,449)
Singapore Dollar Sell 8/22/13 523,909 532,557 8,648
Credit Suisse International
Australian Dollar Buy 10/18/13 5,926,561 6,080,996 (154,435)
Canadian Dollar Buy 10/18/13 3,770,201 3,686,263 83,938
Japanese Yen Sell 8/22/13 5,979,687 6,040,353 60,666
Swiss Franc Buy 9/18/13 11,932,146 11,681,924 250,222
Deutsche Bank AG
British Pound Sell 9/18/13 2,800,490 2,823,406 22,916
Canadian Dollar Buy 10/18/13 2,092,623 2,046,180 46,443
Euro Buy 9/18/13 895,734 901,615 (5,881)
Goldman Sachs International
Australian Dollar Buy 10/18/13 873,402 920,063 (46,661)
HSBC Bank USA, National Association
British Pound Sell 9/18/13 2,138,957 2,156,263 17,306
Norwegian Krone Buy 9/18/13 166,506 168,449 (1,943)
Norwegian Krone Sell 9/18/13 166,506 165,289 (1,217)
JPMorgan Chase Bank N.A.
Australian Dollar Buy 10/18/13 749,371 768,822 (19,451)
Australian Dollar Sell 10/18/13 749,371 755,499 6,128
British Pound Sell 9/18/13 2,948,309 2,934,592 (13,717)
Canadian Dollar Buy 10/18/13 1,655,810 1,618,923 36,887
Japanese Yen Buy 8/22/13 7,865,143 7,798,315 66,828
Japanese Yen Sell 8/22/13 7,865,143 7,807,981 (57,162)
Norwegian Krone Sell 9/18/13 5,011,040 5,067,254 56,214
Swedish Krona Buy 9/18/13 1,625,798 1,614,347 11,451
State Street Bank and Trust Co.
Canadian Dollar Buy 10/18/13 2,806,005 2,743,155 62,850
Euro Buy 9/18/13 1,133,373 1,017,333 116,040
Israeli Shekel Buy 10/18/13 2,304,900 2,258,508 46,392
Japanese Yen Sell 8/22/13 4,509,929 4,333,318 (176,611)
Norwegian Krone Sell 9/18/13 3,124,417 3,161,766 37,349
Swedish Krona Buy 9/18/13 353,859 351,241 2,618
UBS AG
Australian Dollar Buy 10/18/13 2,106,109 2,123,441 (17,332)
Australian Dollar Sell 10/18/13 2,106,109 2,160,660 54,551
British Pound Buy 9/18/13 6,819,114 6,920,785 (101,671)
British Pound Sell 9/18/13 6,819,114 6,830,150 11,036
Canadian Dollar Buy 10/18/13 576,458 563,541 12,917
Euro Buy 9/18/13 442,146 429,366 12,780
Norwegian Krone Buy 9/18/13 17,035,191 17,226,410 (191,219)
Swiss Franc Buy 9/18/13 13,346,566 13,016,735 329,831
WestPac Banking Corp.
British Pound Sell 9/18/13 6,250,500 6,299,776 49,276
Canadian Dollar Buy 10/18/13 2,208,362 2,158,694 49,668
Japanese Yen Buy 8/22/13 2,751,459 2,747,416 4,043
Japanese Yen Sell 8/22/13 2,751,459 2,770,959 19,500
Total $1,024,188












Notes to the fund's portfolio
Unless noted otherwise, the notes to the fund's portfolio are for the close of the fund's reporting period, which ran from November 1, 2012 through July 31, 2013 (the reporting period). Within the following notes to the portfolio, references to “ASC 820” represent Accounting Standards Codification 820 Fair Value Measurements and Disclosures, references to “Putnam Management” represent Putnam Investment Management, LLC, the fund's manager, an indirect wholly-owned subsidiary of Putnam Investments, LLC and references to “OTC”, if any, represent over-the-counter.
(a) Percentages indicated are based on net assets of $866,746,039.
(b) The aggregate identified cost on a tax basis is $772,589,632, resulting in gross unrealized appreciation and depreciation of $125,624,958 and $25,234,679, respectively, or net unrealized appreciation of $100,390,279.
(NON) Non-income-producing security.
(AFF) Affiliated company. The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period. Transactions during the period with Putnam Money Market Liquidity Fund and Putnam Short Term Investment Fund, which are under common ownership and control, were as follows:
Name of affiliate Market value at the beginning of the reporting period Purchase cost Sale proceeds Investment income Market value at the end of the reporting period
Putnam Money Market Liquidity Fund * $6,384,125 $100,769,496 $107,153,621 $3,704 $—
Putnam Short Term Investment Fund * — 116,996,559 112,204,362 787 4,792,197
Totals $6,384,125 $217,766,055 $219,357,983 $4,491 $4,792,197
* Management fees charged to Putnam Money Market Liquidity Fund and Putnam Short Term Investment Fund have been waived by Putnam Management.
(SEGSF) This security, in part or in entirety, was pledged and segregated with the custodian for collateral on certain derivative contracts at the close of the reporting period.
(d) Affiliated company. The fund may lend securities, through its agent, to qualified borrowers in order to earn additional income. The loans are collateralized by cash in an amount at least equal to the market value of the securities loaned. The market value of securities loaned is determined daily and any additional required collateral is allocated to the fund on the next business day. The risk of borrower default will be borne by the fund’s agent; the fund will bear the risk of loss with respect to the investment of the cash collateral. At the close of the reporting period, the value of securities loaned amounted to $9,791,416.
The fund received cash collateral of $9,989,788, which is invested in Putnam Cash Collateral Pool, LLC, a limited liability company managed by an affiliate of Putnam Management. Investments in Putnam Cash Collateral Pool, LLC are valued at its closing net asset value each business day. There are no management fees charged to Putnam Cash Collateral Pool, LLC. The rate quoted in the security description is the annualized 7-day yield at the close of the reporting period.
(i) Security was pledged, or purchased with cash that was pledged, to the fund for collateral on certain derivative contracts.
(P) Security was pledged, or purchased with cash that was pledged, to the fund for collateral on certain derivatives contracts. The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period.
(S) Security on loan, in part or in entirety, at the close of the reporting period.
At the close of the reporting period, the fund maintained liquid assets totaling $130,052 to cover certain derivatives contracts.
Debt obligations are considered secured unless otherwise indicated.
The dates shown on debt obligations are the original maturity dates.
DIVERSIFICATION BY COUNTRY ⌂
Distribution of investments by country of risk at the close of the reporting period, excluding collateral received, if any (as a percentage of Portfolio Value):
United States 57.2%
United Kingdom 10.9
Japan 10.8
France 4.0
Brazil 2.1
Spain 2.0
South Korea 2.0
Netherlands 1.6
Italy 1.4
Sweden 0.9
Singapore 0.9
Germany 0.7
Jersey 0.6
Mexico 0.6
Indonesia 0.6
Peru 0.5
Czech Republic 0.5
Turkey 0.5
Other 2.2
Total 100.0%
⌂ Methodology differs from that used for purposes of complying with the fund’s policy regarding investments in securities of foreign issuers, as discussed further in the fund’s prospectus.
Security valuation: Investments for which market quotations are readily available are valued at the last reported sales price on their principal exchange, or official closing price for certain markets, and are classified as Level 1 securities under ASC 820. If no sales are reported, as in the case of some securities that are traded OTC, a security is valued at its last reported bid price and is generally categorized as a Level 2 security.
Investments in open-end investment companies (excluding exchange traded funds), if any, which can be classified as Level 1 or Level 2 securities, are valued based on their net asset value. The net asset value of such investment companies equals the total value of their assets less their liabilities and divided by the number of their outstanding shares.
Market quotations are not considered to be readily available for certain debt obligations and other investments; such investments are valued on the basis of valuations furnished by an independent pricing service approved by the Trustees or dealers selected by Putnam Management. Such services or dealers determine valuations for normal institutional-size trading units of such securities using methods based on market transactions for comparable securities and various relationships, generally recognized by institutional traders, between securities (which consider such factors as security prices, yields, maturities and ratings). These securities will generally be categorized as Level 2.
Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore the closing prices for securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the close of the New York Stock Exchange. Accordingly, on certain days, the fund will fair value foreign equity securities taking into account multiple factors including movements in the U.S. securities markets, currency valuations and comparisons to the valuation of American Depository Receipts, exchange-traded funds and futures contracts. These securities, which would generally be classified as Level 1 securities, will be transferred to Level 2 of the fair value hierarchy when they are valued at fair value. The number of days on which fair value prices will be used will depend on market activity and it is possible that fair value prices will be used by the fund to a significant extent. At the close of the reporting period, fair value pricing was used for certain foreign securities in the portfolio. Securities quoted in foreign currencies, if any, are translated into U.S. dollars at the current exchange rate.
To the extent a pricing service or dealer is unable to value a security or provides a valuation that Putnam Management does not believe accurately reflects the security's fair value, the security will be valued at fair value by Putnam Management. Certain investments, including certain restricted and illiquid securities and derivatives, are also valued at fair value following procedures approved by the Trustees. These valuations consider such factors as significant market or specific security events such as interest rate or credit quality changes, various relationships with other securities, discount rates, U.S. Treasury, U.S. swap and credit yields, index levels, convexity exposures and recovery rates. These securities are classified as Level 2 or as Level 3 depending on the priority of the significant inputs.
Such valuations and procedures are reviewed periodically by the Trustees. The fair value of securities is generally determined as the amount that the fund could reasonably expect to realize from an orderly disposition of such securities over a reasonable period of time. By its nature, a fair value price is a good faith estimate of the value of a security in a current sale and does not reflect an actual market price, which may be different by a material amount.
Forward currency contracts: The fund buys and sells forward currency contracts, which are agreements between two parties to buy and sell currencies at a set price on a future date. These contracts were used to hedge foreign exchange risk.
The U.S. dollar value of forward currency contracts is determined using current forward currency exchange rates supplied by a quotation service. The market value of the contract will fluctuate with changes in currency exchange rates. The contract is marked to market daily and the change in market value is recorded as an unrealized gain or loss. The fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed when the contract matures or by delivery of the currency. The fund could be exposed to risk if the value of the currency changes unfavorably, if the counterparties to the contracts are unable to meet the terms of their contracts or if the fund is unable to enter into a closing position.
For the fund's average contract amount on forward currency contracts, see the appropriate table at the end of these footnotes.
Master agreements: The fund is a party to ISDA (International Swaps and Derivatives Association, Inc.) Master Agreements (Master Agreements) with certain counterparties that govern OTC derivative and foreign exchange contracts entered into from time to time. The Master Agreements may contain provisions regarding, among other things, the parties’ general obligations, representations, agreements, collateral requirements, events of default and early termination. With respect to certain counterparties, in accordance with the terms of the Master Agreements, collateral posted to the fund is held in a segregated account by the fund’s custodian and with respect to those amounts which can be sold or repledged, are presented in the fund’s portfolio. Collateral posted to the fund which cannot be sold or repledged totaled $388,046 at the close of the reporting period.
Collateral pledged by the fund is segregated by the fund’s custodian and identified in the fund’s portfolio. Collateral can be in the form of cash or debt securities issued by the U.S. Government or related agencies or other securities as agreed to by the fund and the applicable counterparty. Collateral requirements are determined based on the fund’s net position with each counterparty.
Termination events applicable to the fund may occur upon a decline in the fund’s net assets below a specified threshold over a certain period of time. Termination events applicable to counterparties may occur upon a decline in the counterparty’s long-term and short-term credit ratings below a specified level. In each case, upon occurrence, the other party may elect to terminate early and cause settlement of all derivative and foreign exchange contracts outstanding, including the payment of any losses and costs resulting from such early termination, as reasonably determined by the terminating party. Any decision by one or more of the fund’s counterparties to elect early termination could impact the fund's future derivative activity.
At the close of the reporting period, the fund had a net liability position of $46,661 on open derivative contracts subject to the Master Agreements. Collateral posted by the fund for these agreements totaled $94,936.












ASC 820 establishes a three-level hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of the fund’s investments. The three levels are defined as follows:
Level 1: Valuations based on quoted prices for identical securities in active markets.
Level 2: Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.
Level 3: Valuations based on inputs that are unobservable and significant to the fair value measurement.
The following is a summary of the inputs used to value the fund’s net assets as of the close of the reporting period:

 Valuation inputs
Investments in securities: Level 1 Level 2 Level 3
Common stocks *:
    Consumer discretionary $128,002,850 $39,757,737 $—
    Consumer staples 40,453,440 4,527,509 —
    Energy 55,777,133 30,889,574 —
    Financials 160,085,639 50,361,393 —
    Health care 64,749,294 28,082,572 —
    Industrials 40,877,319 25,249,182 —
    Information technology 97,134,194 10,889,144 —
    Materials 45,884,410 9,436,438 —
    Telecommunication services 15,145,707 — —
    Utilities 2,572,038 3,509,689 —
Total common stocks 650,682,024 202,703,238 —
U.S. treasury obligations — 114,603 —
Short-term investments 5,712,197 13,767,849 —
Totals by level $656,394,221 $216,585,690 $—



Valuation inputs
Other financial instruments: Level 1 Level 2 Level 3
Forward currency contracts $— $1,024,188 $—
Totals by level $— $1,024,188 $—


* Common stock classifications are presented at the sector level, which may differ from the fund's portfolio presentation.
Market Values of Derivative Instruments as of the close of the reporting period
Asset derivatives Liability derivatives
Derivatives not accounted for as hedging instruments under ASC 815 Market value Market value
Foreign exchange contracts $1,979,832 $955,644
Total $1,979,832 $955,644


The average volume of activity for the reporting period for any derivative type that was held at the close of the period is listed below and was as follows:
Forward currency contracts (contract amount) $250,300,000

For additional information regarding the fund please see the fund's most recent annual or semiannual shareholder report filed on the Securities and Exchange Commission's Web site, www.sec.gov, or visit Putnam's Individual Investor Web site at www.putnaminvestments.com



Item 2. Controls and Procedures:
(a) The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the effectiveness of the design and operation of the registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the design and operation of such procedures are generally effective to provide reasonable assurance that information required to be disclosed by the registrant in this report is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms.

(b) Changes in internal control over financial reporting: Not applicable
Item 3. Exhibits:
Separate certifications for the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are filed herewith.

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Putnam Global Equity Fund
By (Signature and Title):
/s/ Janet C. Smith
Janet C. Smith
Principal Accounting Officer
Date: September 27, 2013

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title):
/s/ Jonathan S. Horwitz
Jonathan S. Horwitz
Principal Executive Officer
Date: September 27, 2013

By (Signature and Title):
/s/ Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer
Date: September 27, 2013