| 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: | Bryan Chegwidden, Esq. Ropes & Gray LLP 1211 Avenue of the Americas New York, New York 10036 |
| Registrant's telephone number, including area code: | (617) 292-1000 |
| Date of fiscal year end: | October 31, 2018 |
| Date of reporting period: | January 31, 2018 |
Item 1. Schedule of Investments: |
| Putnam Global Equity Fund | ||||||
| The fund's portfolio | ||||||
| 1/31/18 (Unaudited) | ||||||
| COMMON STOCKS (97.4%)(a) | ||||||
| Shares | Value | |||||
| Aerospace and defense (2.1%) | ||||||
| L3 Technologies, Inc. | 26,000 | $5,523,960 | ||||
| Raytheon Co. | 41,600 | 8,691,904 | ||||
| Textron, Inc. | 73,600 | 4,318,112 | ||||
| 18,533,976 | ||||||
| Auto components (1.0%) | ||||||
| Pirelli & C SpA (Italy)(NON) | 948,635 | 9,139,553 | ||||
| 9,139,553 | ||||||
| Banks (4.3%) | ||||||
| Bank of America Corp. | 445,300 | 14,249,600 | ||||
| Bank of Ireland Group PLC (Ireland)(NON) | 1,071,169 | 10,453,089 | ||||
| Grupo Financiero Galicia SA ADR (Argentina) | 109,200 | 7,622,160 | ||||
| ING Groep NV (Netherlands) | 307,853 | 6,050,460 | ||||
| 38,375,309 | ||||||
| Beverages (2.2%) | ||||||
| Diageo PLC (United Kingdom) | 301,226 | 10,831,391 | ||||
| Molson Coors Brewing Co. Class B | 99,306 | 8,343,690 | ||||
| 19,175,081 | ||||||
| Biotechnology (1.2%) | ||||||
| Alkermes PLC(NON)(S) | 77,300 | 4,419,241 | ||||
| Vertex Pharmaceuticals, Inc.(NON) | 35,500 | 5,923,885 | ||||
| 10,343,126 | ||||||
| Building products (2.3%) | ||||||
| Assa Abloy AB Class B (Sweden) | 341,131 | 7,554,329 | ||||
| Fortune Brands Home & Security, Inc. | 72,371 | 5,133,275 | ||||
| Johnson Controls International PLC | 189,500 | 7,415,135 | ||||
| 20,102,739 | ||||||
| Capital markets (2.8%) | ||||||
| Cboe Global Markets, Inc. | 32,200 | 4,327,358 | ||||
| E*Trade Financial Corp.(NON) | 271,000 | 14,281,700 | ||||
| Edelweiss Financial Services, Ltd. (India) | 1,319,384 | 5,822,787 | ||||
| 24,431,845 | ||||||
| Chemicals (2.5%) | ||||||
| CF Industries Holdings, Inc. | 244,500 | 10,376,580 | ||||
| DowDuPont, Inc. | 69,900 | 5,283,042 | ||||
| Sherwin-Williams Co. (The) | 16,500 | 6,882,315 | ||||
| 22,541,937 | ||||||
| Commercial services and supplies (—%) | ||||||
| New Bigfoot Other Assets GmbH (acquired 8/2/13, cost $17) (Private) (Germany)(F)(RES)(NON) | 13 | 12 | ||||
| New Middle East Other Assets GmbH (acquired 8/2/13, cost $7) (Private) (Germany)(F)(RES)(NON) | 5 | 5 | ||||
| 17 | ||||||
| Construction and engineering (1.0%) | ||||||
| Kyudenko Corp. (Japan) | 194,900 | 8,926,445 | ||||
| 8,926,445 | ||||||
| Construction materials (1.5%) | ||||||
| Loma Negra Cia Industrial Argentina SA ADR (Argentina)(NON) | 252,680 | 6,003,677 | ||||
| Summit Materials, Inc. Class A(NON) | 238,087 | 7,606,880 | ||||
| 13,610,557 | ||||||
| Consumer finance (0.5%) | ||||||
| Shriram Transport Finance Co., Ltd. (India) | 191,569 | 4,155,688 | ||||
| 4,155,688 | ||||||
| Containers and packaging (1.8%) | ||||||
| Ball Corp.(S) | 167,600 | 6,415,728 | ||||
| RPC Group PLC (United Kingdom) | 788,807 | 9,531,091 | ||||
| 15,946,819 | ||||||
| Distributors (0.7%) | ||||||
| PALTAC Corp. (Japan) | 148,900 | 6,580,952 | ||||
| 6,580,952 | ||||||
| Diversified financial services (2.1%) | ||||||
| Challenger, Ltd. (Australia) | 762,098 | 8,376,303 | ||||
| Eurazeo SA (France) | 100,030 | 10,525,290 | ||||
| 18,901,593 | ||||||
| Diversified telecommunication services (0.6%) | ||||||
| Koninklijke KPN NV (Netherlands) | 1,399,378 | 4,899,461 | ||||
| 4,899,461 | ||||||
| Electric utilities (1.2%) | ||||||
| Exelon Corp. | 284,000 | 10,936,840 | ||||
| 10,936,840 | ||||||
| Electrical equipment (1.5%) | ||||||
| Eaton Corp. PLC | 102,300 | 8,590,131 | ||||
| Emerson Electric Co. | 59,400 | 4,290,462 | ||||
| 12,880,593 | ||||||
| Equity real estate investment trusts (REITs) (0.8%) | ||||||
| Hibernia REIT PLC (Ireland) | 3,857,362 | 7,336,911 | ||||
| 7,336,911 | ||||||
| Food products (3.8%) | ||||||
| Associated British Foods PLC (United Kingdom) | 226,738 | 8,798,452 | ||||
| Kerry Group PLC Class A (Ireland) | 36,058 | 3,838,839 | ||||
| Kraft Heinz Co. (The) | 109,300 | 8,568,027 | ||||
| Nomad Foods, Ltd. (United Kingdom)(NON) | 755,179 | 12,868,250 | ||||
| 34,073,568 | ||||||
| Health-care equipment and supplies (6.0%) | ||||||
| Becton Dickinson and Co. | 75,100 | 18,244,794 | ||||
| Boston Scientific Corp.(NON) | 561,400 | 15,696,744 | ||||
| Danaher Corp. | 80,000 | 8,102,400 | ||||
| Dentsply Sirona, Inc. | 180,200 | 10,957,962 | ||||
| 53,001,900 | ||||||
| Health-care technology (0.7%) | ||||||
| CompuGroup Medical SE (Germany) | 96,272 | 6,089,874 | ||||
| 6,089,874 | ||||||
| Hotels, restaurants, and leisure (2.5%) | ||||||
| Compass Group PLC (United Kingdom) | 398,104 | 8,379,798 | ||||
| Dalata Hotel Group PLC (Ireland)(NON) | 1,002,458 | 7,280,918 | ||||
| Hilton Worldwide Holdings, Inc. | 78,890 | 6,756,929 | ||||
| 22,417,645 | ||||||
| Household durables (2.4%) | ||||||
| CalAtlantic Group, Inc. | 163,147 | 9,157,441 | ||||
| HC Brillant Services GmbH (acquired 8/2/13, cost $17) (Private) (Germany)(F)(RES)(NON) | 26 | 24 | ||||
| Sony Corp. (Japan) | 132,400 | 6,317,410 | ||||
| Techtronic Industries Co., Ltd. (Hong Kong) | 922,500 | 6,143,986 | ||||
| 21,618,861 | ||||||
| Independent power and renewable electricity producers (1.5%) | ||||||
| NRG Energy, Inc. | 519,981 | 13,524,705 | ||||
| 13,524,705 | ||||||
| Insurance (4.4%) | ||||||
| Assured Guaranty, Ltd. | 321,200 | 11,431,508 | ||||
| Fairfax Financial Holdings, Ltd. (Canada) | 23,000 | 12,098,374 | ||||
| IRB Brasil Resseguros SA (Brazil) | 558,072 | 6,577,402 | ||||
| Prudential PLC (United Kingdom) | 334,223 | 9,044,854 | ||||
| 39,152,138 | ||||||
| Internet and direct marketing retail (1.9%) | ||||||
| Amazon.com, Inc.(NON) | 11,400 | 16,540,146 | ||||
| Global Fashion Holding SA (acquired 8/2/13, cost $855,718) (Private) (Luxembourg)(F)(RES)(NON) | 20,200 | 201,650 | ||||
| 16,741,796 | ||||||
| Internet software and services (6.7%) | ||||||
| Alibaba Group Holding, Ltd. ADR (China)(NON)(S) | 49,400 | 10,091,926 | ||||
| Alphabet, Inc. Class C(NON) | 23,262 | 27,215,145 | ||||
| Facebook, Inc. Class A(NON) | 22,500 | 4,205,025 | ||||
| GoDaddy, Inc. Class A(NON) | 152,400 | 8,417,052 | ||||
| Instructure, Inc.(NON)(S) | 256,700 | 9,215,530 | ||||
| 59,144,678 | ||||||
| IT Services (2.5%) | ||||||
| DXC Technology Co. | 123,300 | 12,274,515 | ||||
| Visa, Inc. Class A | 81,300 | 10,099,899 | ||||
| 22,374,414 | ||||||
| Leisure products (2.1%) | ||||||
| Brunswick Corp. | 142,500 | 8,946,150 | ||||
| Universal Entertainment Corp. (Japan) | 205,500 | 9,788,403 | ||||
| 18,734,553 | ||||||
| Machinery (0.7%) | ||||||
| KION Group AG (Germany) | 66,133 | 6,069,379 | ||||
| 6,069,379 | ||||||
| Media (0.8%) | ||||||
| Live Nation Entertainment, Inc.(NON)(S) | 161,200 | 7,263,672 | ||||
| 7,263,672 | ||||||
| Metals and mining (1.9%) | ||||||
| Alcoa Corp.(NON) | 159,900 | 8,317,998 | ||||
| Iluka Resources, Ltd. (Australia) | 1,013,862 | 8,267,735 | ||||
| 16,585,733 | ||||||
| Oil, gas, and consumable fuels (7.1%) | ||||||
| Cenovus Energy, Inc. (Canada) | 706,559 | 6,738,160 | ||||
| ConocoPhillips | 127,600 | 7,504,156 | ||||
| EOG Resources, Inc. | 55,300 | 6,359,500 | ||||
| Kinder Morgan, Inc. | 470,200 | 8,454,196 | ||||
| Pioneer Natural Resources Co. | 54,900 | 10,041,759 | ||||
| Seven Generations Energy, Ltd. Class A (Canada)(NON) | 663,200 | 9,247,057 | ||||
| Suncor Energy, Inc. (Canada) | 409,228 | 14,825,366 | ||||
| 63,170,194 | ||||||
| Personal products (3.5%) | ||||||
| Shiseido Co., Ltd. (Japan) | 163,300 | 8,378,156 | ||||
| Unilever NV ADR (Netherlands) | 391,892 | 22,697,716 | ||||
| 31,075,872 | ||||||
| Pharmaceuticals (3.8%) | ||||||
| AstraZeneca PLC (United Kingdom) | 59,289 | 4,113,527 | ||||
| Bayer AG (Germany) | 82,747 | 10,830,273 | ||||
| Chugai Pharmaceutical Co., Ltd. (Japan) | 101,800 | 5,380,471 | ||||
| Jazz Pharmaceuticals PLC(NON) | 38,300 | 5,581,842 | ||||
| Novartis AG (Switzerland) | 46,809 | 4,234,561 | ||||
| Pacira Pharmaceuticals, Inc.(NON) | 101,200 | 3,683,680 | ||||
| 33,824,354 | ||||||
| Real estate management and development (1.1%) | ||||||
| Kennedy-Wilson Holdings, Inc. | 530,735 | 9,420,546 | ||||
| 9,420,546 | ||||||
| Road and rail (1.9%) | ||||||
| Norfolk Southern Corp. | 113,500 | 17,124,880 | ||||
| 17,124,880 | ||||||
| Semiconductors and semiconductor equipment (1.9%) | ||||||
| Rohm Co., Ltd. (Japan) | 54,600 | 5,986,645 | ||||
| SCREEN Holdings Co., Ltd. (Japan) | 64,500 | 5,600,989 | ||||
| Sino-American Silicon Products, Inc. (Taiwan) | 1,492,000 | 5,195,931 | ||||
| 16,783,565 | ||||||
| Software (5.1%) | ||||||
| Adobe Systems, Inc.(NON) | 30,000 | 5,992,800 | ||||
| Micro Focus International PLC (United Kingdom) | 216,360 | 6,604,771 | ||||
| NCSOFT Corp. (South Korea) | 21,075 | 8,723,276 | ||||
| Nintendo Co., Ltd. (Japan) | 15,100 | 6,635,037 | ||||
| RealPage, Inc.(NON) | 178,300 | 8,870,425 | ||||
| ServiceNow, Inc.(NON) | 59,400 | 8,842,878 | ||||
| 45,669,187 | ||||||
| Specialty retail (2.5%) | ||||||
| Advance Auto Parts, Inc. | 45,600 | 5,334,744 | ||||
| Lowe's Cos., Inc. | 114,500 | 11,991,585 | ||||
| O'Reilly Automotive, Inc.(NON) | 19,100 | 5,055,579 | ||||
| 22,381,908 | ||||||
| Technology hardware, storage, and peripherals (0.6%) | ||||||
| Samsung Electronics Co., Ltd. (South Korea) | 2,307 | 5,390,237 | ||||
| 5,390,237 | ||||||
| Thrifts and mortgage finance (1.0%) | ||||||
| Radian Group, Inc. | 385,100 | 8,499,157 | ||||
| 8,499,157 | ||||||
| Wireless telecommunication services (0.9%) | ||||||
| Vodafone Group PLC ADR (United Kingdom) | 251,481 | 8,102,716 | ||||
| 8,102,716 | ||||||
| Total common stocks (cost $799,018,979) | $865,054,974 | |||||
| CONVERTIBLE PREFERRED STOCKS (0.4%)(a) | ||||||
| Shares | Value | |||||
| Global Fashion Group SA zero % cv. pfd. (acquired 7/11/16, cost $103,080) (Luxembourg) (Private)(F)(RES)(NON) | 15,684 | $159,699 | ||||
| Uber Technologies, Inc. Ser. E, 8.00% cv. pfd. (acquired 2/18/15, cost $3,653,997) (Private)(F)(RES)(NON) | 108,051 | 3,559,827 | ||||
| Total convertible preferred stocks (cost $3,757,102) | $3,719,526 | |||||
| SHORT-TERM INVESTMENTS (4.4%)(a) | ||||||
| Principal amount/shares | Value | |||||
| Putnam Cash Collateral Pool, LLC 1.57%(AFF) | Shares | 19,717,400 | $19,717,400 | |||
| Putnam Short Term Investment Fund 1.45%(AFF) | Shares | 18,269,209 | 18,269,209 | |||
| State Street Institutional U.S. Government Money Market Fund, Premier Class 1.25%(P) | Shares | 120,000 | 120,000 | |||
| U.S. Treasury Bills 1.077%, 2/8/18 | $46,000 | 45,989 | ||||
| U.S. Treasury Bills 1.082%, 2/15/18(SEGSF) | 343,000 | 342,840 | ||||
| U.S. Treasury Bills 1.121%, 2/1/18(SEGSF) | 364,000 | 364,000 | ||||
| U.S. Treasury Bills 1.320%, 3/15/18(SEGSF) | 272,000 | 271,579 | ||||
| U.S. Treasury Bills 1.492%, 5/24/18 | 103,000 | 102,531 | ||||
| Total short-term investments (cost $39,233,577) | $39,233,548 | |||||
| TOTAL INVESTMENTS | ||||||
| Total investments (cost $842,009,658) | $908,008,048 | |||||
| FORWARD CURRENCY CONTRACTS at 1/31/18 (aggregate face value $132,014,804) (Unaudited) | |||||||
| Counterparty | Currency | Contract type* | Delivery date | Value | Aggregate face value | Unrealized appreciation/ (depreciation) | |
| Bank of America N.A. | |||||||
| Australian Dollar | Buy | 4/18/18 | $30,776 | $29,881 | $895 | ||
| British Pound | Sell | 3/21/18 | 5,463,342 | 5,183,858 | (279,484) | ||
| Canadian Dollar | Sell | 4/18/18 | 5,862,573 | 5,763,892 | (98,681) | ||
| Euro | Buy | 3/21/18 | 5,591,528 | 5,670,261 | (78,733) | ||
| Hong Kong Dollar | Buy | 2/22/18 | 71,391 | 71,715 | (324) | ||
| Japanese Yen | Buy | 2/22/18 | 326,862 | 315,747 | 11,115 | ||
| Barclays Bank PLC | |||||||
| British Pound | Buy | 3/21/18 | 99,571 | 94,823 | 4,748 | ||
| Hong Kong Dollar | Buy | 2/22/18 | 5,243,353 | 5,265,050 | (21,697) | ||
| Japanese Yen | Buy | 2/22/18 | 226,964 | 219,204 | 7,760 | ||
| Swiss Franc | Buy | 3/21/18 | 1,182,645 | 1,122,251 | 60,394 | ||
| Citibank, N.A. | |||||||
| British Pound | Buy | 3/21/18 | 746,216 | 789,211 | (42,995) | ||
| Canadian Dollar | Sell | 4/18/18 | 3,973,644 | 3,910,636 | (63,008) | ||
| Danish Krone | Buy | 3/21/18 | 6,441,764 | 6,208,773 | 232,991 | ||
| Japanese Yen | Sell | 2/22/18 | 1,263,741 | 1,264,030 | 289 | ||
| Swedish Krona | Buy | 3/21/18 | 41,950 | 39,682 | 2,268 | ||
| Goldman Sachs International | |||||||
| British Pound | Sell | 3/21/18 | 5,668,885 | 5,386,502 | (282,383) | ||
| Canadian Dollar | Sell | 4/18/18 | 703,069 | 691,811 | (11,258) | ||
| Chinese Yuan | Sell | 2/22/18 | 9,872,356 | 9,332,912 | (539,444) | ||
| Euro | Sell | 3/21/18 | 1,092,351 | 1,034,300 | (58,051) | ||
| Japanese Yen | Sell | 2/22/18 | 2,664,184 | 2,648,743 | (15,441) | ||
| JPMorgan Chase Bank N.A. | |||||||
| Australian Dollar | Buy | 4/18/18 | 163,631 | 158,888 | 4,743 | ||
| British Pound | Buy | 3/21/18 | 178,375 | 169,961 | 8,414 | ||
| British Pound | Sell | 3/21/18 | 5,275,436 | 5,026,587 | (248,849) | ||
| Euro | Buy | 3/21/18 | 6,048,471 | 5,861,263 | 187,208 | ||
| Euro | Sell | 3/21/18 | 3,014,272 | 2,885,358 | (128,914) | ||
| Japanese Yen | Buy | 2/22/18 | 247,871 | 238,344 | 9,527 | ||
| Japanese Yen | Sell | 2/22/18 | 243,535 | 243,878 | 343 | ||
| Norwegian Krone | Buy | 3/21/18 | 2,104,864 | 1,962,583 | 142,281 | ||
| Singapore Dollar | Buy | 2/22/18 | 3,959,586 | 3,824,230 | 135,356 | ||
| South Korean Won | Buy | 2/22/18 | 6,501,564 | 6,464,960 | 36,604 | ||
| South Korean Won | Sell | 2/22/18 | 20,564,585 | 19,751,838 | (812,747) | ||
| Swedish Krona | Buy | 3/21/18 | 456,916 | 431,820 | 25,096 | ||
| Swiss Franc | Buy | 3/21/18 | 21,550,208 | 20,441,269 | 1,108,939 | ||
| State Street Bank and Trust Co. | |||||||
| Australian Dollar | Buy | 4/18/18 | 400,819 | 389,138 | 11,681 | ||
| British Pound | Sell | 3/21/18 | 103,697 | 97,707 | (5,990) | ||
| Israeli Shekel | Buy | 4/18/18 | 1,966,540 | 1,948,520 | 18,020 | ||
| Japanese Yen | Buy | 2/22/18 | 57,734 | 57,815 | (81) | ||
| Japanese Yen | Sell | 2/22/18 | 57,734 | 56,966 | (768) | ||
| UBS AG | |||||||
| Australian Dollar | Buy | 4/18/18 | 4,946,140 | 4,914,507 | 31,633 | ||
| WestPac Banking Corp. | |||||||
| Canadian Dollar | Sell | 4/18/18 | 2,079,507 | 2,045,890 | (33,617) | ||
|
| |||||||
| Unrealized appreciation | 2,040,305 | ||||||
|
| |||||||
| Unrealized (depreciation) | (2,722,465) | ||||||
|
| |||||||
| Total | $(682,160) | ||||||
* The exchange currency for all contracts listed is the United States Dollar. | |||||||
| OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 1/31/18 (Unaudited) | |||||||||||
| Swap counterparty/ notional amount |
Value | Upfront premium received (paid) | Termination date | Payments received (paid) by fund | Total return received by or paid by fund | Unrealized appreciation/ (depreciation) | |||||
| Bank of America N.A. | |||||||||||
| $8,315,696 | $8,486,456 | $— | 1/4/19 | (1 month USD-LIBOR-BBA plus 0.90%) — Monthly | MSCI Japan Financials Net USD — Monthly | $157,150 | |||||
|
|
| ||||||||||
| Upfront premium received | — | Unrealized appreciation | 157,150 | ||||||||
|
|
| ||||||||||
| Upfront premium (paid) | — | Unrealized (depreciation) | — | ||||||||
|
|
| ||||||||||
| Total | $— | Total | $157,150 | ||||||||
| Key to holding's abbreviations | |||
| ADR | American Depository Receipts: represents ownership of foreign securities on deposit with a custodian bank | ||
| 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, 2017 through January 31, 2018 (the reporting period). Within the following notes to the portfolio, references to "Putnam Management" represent Putnam Investment Management, LLC, the fund's manager, an indirect wholly-owned subsidiary of Putnam Investments, LLC, references to "ASC 820" represent Accounting Standards Codification 820 Fair Value Measurements and Disclosures and references to "OTC", if any, represent over-the-counter. | ||||||
| (a) | Percentages indicated are based on net assets of $887,760,367. | |||||
| (NON) | This security is non-income-producing. | |||||
| (RES) | This security is restricted with regard to public resale. The total fair value of this security and any other restricted securities (excluding 144A securities), if any, held at the close of the reporting period was $3,921,217, or 0.4% of net assets. | |||||
| (AFF) | Affiliated company. For investments in Putnam Cash Collateral Pool, LLC and Putnam Short Term Investment Fund, 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 any company which is under common ownership or control were as follows: | |||||
| Name of affiliate | Fair value as of 10/31/17 | Purchase cost | Sale proceeds | Investment income | Shares outstanding and fair value as of 1/31/18 | |
| Short-term investments | ||||||
| Putnam Cash Collateral Pool, LLC*# | $43,598,936 | $28,258,070 | $52,139,606 | $103,683 | $19,717,400 | |
| Putnam Short Term Investment Fund** | 11,908,469 | 103,199,499 | 96,838,759 | 82,665 | 18,269,209 | |
| Total Short-term investments | $55,507,405 | $131,457,569 | $148,978,365 | $186,348 | $37,986,609 | |
| * No management fees are charged to Putnam Cash Collateral Pool, LLC. There were no realized or unrealized gains or losses during the period. | ||||||
| # 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 fair value of the securities loaned. The fair value of securities loaned is determined daily and any additional required collateral is allocated to the fund on the next business day. The remaining maturities of the securities lending transactions are considered overnight and continuous. 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. The fund received cash collateral of $19,717,400, 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. At the close of the reporting period, the value of securities loaned amounted to $19,480,842. | ||||||
| ** Management fees charged to Putnam Short Term Investment Fund have been waived by Putnam Management. There were no realized or unrealized gains or losses during the period. | ||||||
| (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. Collateral at period end totaled $815,476. | |||||
| (F) | This security is valued by Putnam Management at fair value following procedures approved by the Trustees. Securities are classified as Level 3 for ASC 820 based on the securities' valuation inputs. | |||||
| (P) | This security was pledged, or purchased with cash that was pledged, to the fund for collateral on certain derivative 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) | This security is 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 $1,244,623 to cover certain derivative contracts. | ||||||
| Unless otherwise noted, the rates quoted in Short-term investments security descriptions represent the weighted average yield to maturity. | ||||||
| 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 | 56.7% | |||||
| United Kingdom | 8.8 | |||||
| Japan | 7.2 | |||||
| Canada | 4.8 | |||||
| Netherlands | 3.8 | |||||
| Ireland | 3.3 | |||||
| Germany | 2.6 | |||||
| Australia | 1.9 | |||||
| South Korea | 1.6 | |||||
| Argentina | 1.5 | |||||
| France | 1.2 | |||||
| China | 1.1 | |||||
| India | 1.1 | |||||
| Italy | 1.0 | |||||
| Sweden | 0.9 | |||||
| Brazil | 0.7 | |||||
| Hong Kong | 0.7 | |||||
| Taiwan | 0.6 | |||||
| Switzerland | 0.5 | |||||
| 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: Portfolio securities and other investments are valued using policies and procedures adopted by the Board of Trustees. The Trustees have formed a Pricing Committee to oversee the implementation of these procedures and have delegated responsibility for valuing the fund's assets in accordance with these procedures to Putnam Management. Putnam Management has established an internal Valuation Committee that is responsible for making fair value determinations, evaluating the effectiveness of the pricing policies of the fund and reporting to the Pricing Committee. | ||||||
| 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 (including short-term investments with remaining maturities of 60 days or less) 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 scheduled 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 scheduled close of the New York Stock Exchange. Accordingly, on certain days, the fund will fair value certain 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. The foreign equity 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. 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 in accordance with policies and procedures approved by the Trustees. 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, recovery rates, sales and other multiples and resale restrictions. These securities are classified as Level 2 or as Level 3 depending on the priority of the significant inputs. | ||||||
| To assess the continuing appropriateness of fair valuations, the Valuation Committee reviews and affirms the reasonableness of such valuations on a regular basis after considering all relevant information that is reasonably available. 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 fair value of the contract will fluctuate with changes in currency exchange rates. The contract is marked to market daily and the change in fair 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. | ||||||
| Total return swap contracts: The fund entered into OTC and/or centrally cleared total return swap contracts, which are arrangements to exchange a market-linked return for a periodic payment, both based on a notional principal amount, to hedge sector exposure. | ||||||
| To the extent that the total return of the security, index or other financial measure underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the fund will receive a payment from or make a payment to the counterparty. OTC and/or centrally cleared total return swap contracts are marked to market daily based upon quotations from an independent pricing service or market maker. Any change is recorded as an unrealized gain or loss on OTC total return swaps. Daily fluctuations in the value of centrally cleared total return swaps are settled through a central clearing agent and are recorded and recorded as unrealized gain or loss. Payments received or made are recorded as realized gains or losses. Certain OTC and/or centrally cleared total return swap contracts may include extended effective dates. Payments related to these swap contracts are accrued based on the terms of the contract. The fund could be exposed to credit or market risk due to unfavorable changes in the fluctuation of interest rates or in the price of the underlying security or index, the possibility that there is no liquid market for these agreements or that the counterparty may default on its obligation to perform. The fund's maximum risk of loss from counterparty risk or central clearing risk is the fair value of the contract. This risk may be mitigated for OTC total return swap contracts by having a master netting arrangement between the fund and the counterparty and for centrally cleared total return swap contracts through the daily exchange of variation margin. There is minimal counterparty risk with respect to centrally cleared total return swap contracts due to the clearinghouse guarantee fund and other resources that are available in the event of a clearing member default. | ||||||
| For the fund's average notional amount on total return swap 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, is presented in the fund's portfolio. Collateral posted to the fund which cannot be sold or repledged totaled $493,578 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 $1,228,256 on open derivative contracts subject to the Master Agreements. Collateral posted by the fund at period end for these agreements totaled $815,476 and may include amounts related to unsettled agreements. | ||||||
| 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 | $124,677,266 | $— | $201,674 | |
| Consumer staples | 84,324,521 | — | — | |
| Energy | 63,170,194 | — | — | |
| Financials | 133,515,730 | — | — | |
| Health care | 103,259,254 | — | — | |
| Industrials | 83,638,012 | — | 17 | |
| Information technology | 149,362,081 | — | — | |
| Materials | 68,685,046 | — | — | |
| Real Estate | 16,757,457 | — | — | |
| Telecommunication services | 13,002,177 | — | — | |
| Utilities | 24,461,545 | — | — | |
| Total common stocks | 864,853,283 | — | 201,691 | |
| Convertible preferred stocks | — | — | 3,719,526 | |
| Short-term investments | 18,389,209 | 20,844,339 | — | |
|
|
|
|
||
| Totals by level | $883,242,492 | $20,844,339 | $3,921,217 | |
| Valuation inputs | ||||
|
| ||||
| Other financial instruments: | Level 1 | Level 2 | Level 3 | |
| Forward currency contracts | $— | $(682,160) | $— | |
| Total return swap contracts | — | 157,150 | — | |
|
|
|
|
||
| Totals by level | $— | $(525,010) | $— | |
| * Common stock classifications are presented at the sector level, which may differ from the fund's portfolio presentation. | ||||
During the reporting period, transfers within the fair value hierarchy, if any (other than certain transfers involving non-U.S. equity securities as described in the Security valuation note above), did not represent, in the aggregate, more than 1% of the fund's net assets measured as of the end of the period. Transfers are accounted for using the end of period pricing valuation method. | ||||
| At the start and close of the reporting period, Level 3 investments in securities represented less than 1% of the fund's net assets and were not considered a significant portion of the fund's portfolio. | ||||
Fair Value 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 | Fair value | Fair value | ||
| Foreign exchange contracts | $2,040,305 | $2,722,465 | ||
| Equity contracts | 157,150 | — | ||
|
|
|
|||
| Total | $2,197,455 | $2,722,465 | ||
| The 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 based on an average of the holdings of that derivative at the end of each fiscal quarter in the reporting period: | ||||
| Forward currency contracts (contract amount) | $199,000,000 | |||
| OTC total return swap contracts (notional) | $6,200,000 | |||
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: March 28, 2018 |
| 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: March 28, 2018 |
| By (Signature and Title): |
| /s/ Janet C. Smith Janet C. Smith Principal Financial Officer Date: March 28, 2018 |
| Certifications | |
| I, Jonathan S. Horwitz, the Principal Executive Officer of the funds listed on Attachment A, certify that: | |
1. I have reviewed each report on Form N-Q of the funds listed on Attachment A: | |
2. Based on my knowledge, each report does not contain any untrue statements of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by each report; | |
3. Based on my knowledge, the schedules of investments included in each report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; | |
4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrants and have: | |
a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which each report is being prepared; | |
b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |
c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and | |
d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and | |
5. The registrant's other certifying officer and I have disclosed to each registrant's auditors and the audit committee of each registrant's board of directors (or persons performing the equivalent functions): | |
a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect each registrant's ability to record, process, summarize, and report financial information; and | |
b) any fraud, whether or not material, that involves management or other employees who have a significant role in each registrant's internal control over financial reporting. | |
/s/ Jonathan S. Horwitz | |
| _____________________________ | |
Date: March 28, 2018 | |
| Jonathan S. Horwitz | |
| Principal Executive Officer | |
Certifications | |
| I, Janet C. Smith, the Principal Financial Officer of the funds listed on Attachment A, certify that: | |
1. I have reviewed each report on Form N-Q of the funds listed on Attachment A: | |
2. Based on my knowledge, each report does not contain any untrue statements of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by each report; | |
3. Based on my knowledge, the schedules of investments included in each report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; | |
4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrants and have: | |
a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which each report is being prepared; | |
b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |
c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and | |
d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and | |
5. The registrant's other certifying officer and I have disclosed to each registrant's auditors and the audit committee of each registrant's board of directors (or persons performing the equivalent functions): | |
a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect each registrant's ability to record, process, summarize, and report financial information; and | |
b) any fraud, whether or not material, that involves management or other employees who have a significant role in each registrant's internal control over financial reporting. | |
/s/ Janet C. Smith | |
| _______________________________ | |
Date: March 28, 2018 | |
| Janet C. Smith | |
| Principal Financial Officer | |
Attachment A | |
NQ | |
Period (s) ended January 31, 2018 | |
Putnam Managed Municipal Income Trust | |
| Putnam Municipal Opportunities Trust | |
| Putnam Sustainable Future Fund (formerly Putnam Multi-Cap Value Fund) | |
| Putnam Capital Opportunities Fund | |
| Putnam Income Fund | |
| Putnam Global Income Trust | |
| Putnam Global Equity Fund | |
| Putnam Convertible Securities Fund | |
| Putnam Absolute Return 100 Fund | |
| Putnam Absolute Return 300 Fund | |
| Putnam Absolute Return 500 Fund | |
| Putnam Absolute Return 700 Fund | |
| Putnam Capital Spectrum Fund | |
| Putnam Equity Spectrum Fund | |
| Putnam Global Sector Fund | |
| Putnam Multi-Cap Core Fund |