NPORT-EX 1 b_005nportex.htm PUTNAM GLOBAL EQUITY FUND

Putnam Global Equity Fund
The fund's portfolio
7/31/19 (Unaudited)



COMMON STOCKS (97.5%)(a)
        Shares Value
Aerospace and defense (1.1%)
L3Harris Technologies, Inc. 51,655 $10,723,578
10,723,578
Auto components (1.0%)
Pirelli & C. SpA (Italy) 1,615,279 9,533,428
9,533,428
Banks (2.3%)
Bank of America Corp. 523,084 16,048,217
Bank of Ireland Group PLC (Ireland) 1,558,065 6,858,210
22,906,427
Beverages (3.7%)
Asahi Group Holdings, Ltd. (Japan) 446,100 19,240,458
Coca-Cola Co. (The) 218,111 11,479,182
Pernod Ricard SA (France) 36,292 6,354,411
37,074,051
Biotechnology (0.9%)
Vertex Pharmaceuticals, Inc.(NON) 54,081 9,010,976
9,010,976
Building products (2.3%)
Fortune Brands Home & Security, Inc. 174,183 9,569,614
Johnson Controls International PLC 306,096 12,990,714
22,560,328
Capital markets (1.9%)
BGP Holdings PLC (Malta) 82,319 —
E*Trade Financial Corp. 152,512 7,441,060
Edelweiss Financial Services, Ltd. (India) 2,447,239 5,192,692
Hong Kong Exchanges and Clearing, Ltd. (Hong Kong) 196,337 6,630,723
19,264,475
Chemicals (2.7%)
Novozymes A/S Class B (Denmark) 233,654 10,838,629
Sherwin-Williams Co. (The) 30,636 15,717,493
26,556,122
Commercial services and supplies (0.6%)
New Bigfoot Other Assets GmbH (acquired 8/2/13, cost $17) (Private) (Germany)(NON)(F)(RES) 13 11
New Middle East Other Assets GmbH (acquired 8/2/13, cost $7) (Private) (Germany)(NON)(F)(RES) 5 4
Waste Connections, Inc. 71,591 6,494,736
6,494,751
Construction and engineering (0.8%)
Kyudenko Corp. (Japan) 249,900 7,687,438
7,687,438
Construction materials (1.5%)
Summit Materials, Inc. Class A(NON) 800,121 14,754,231
14,754,231
Containers and packaging (2.4%)
Ball Corp. 140,100 10,014,348
SIG Combibloc Group AG (Switzerland) 1,183,123 14,388,066
24,402,414
Distributors (0.8%)
PALTAC Corp. (Japan) 153,400 7,514,919
7,514,919
Diversified financial services (0.8%)
Eurazeo SA (France) 119,145 7,988,674
7,988,674
Entertainment (3.6%)
Live Nation Entertainment, Inc.(NON)(S) 144,400 10,405,464
Nintendo Co., Ltd. (Japan) 33,000 12,090,247
Walt Disney Co. (The) 95,303 13,629,282
36,124,993
Equity real estate investment trusts (REITs) (0.5%)
Hibernia REIT PLC (Ireland)(R) 2,887,021 4,832,258
4,832,258
Food products (4.8%)
Associated British Foods PLC (United Kingdom) 308,246 9,045,553
Hershey Co. (The) 68,900 10,454,886
Nomad Foods, Ltd. (United Kingdom)(NON) 1,297,633 28,898,287
48,398,726
Health-care equipment and supplies (5.0%)
Becton Dickinson and Co. 70,700 17,872,960
Boston Scientific Corp.(NON) 364,900 15,493,654
Danaher Corp. 88,443 12,426,242
ICU Medical, Inc.(NON) 19,028 4,841,484
50,634,340
Health-care providers and services (1.3%)
Cigna Corp. 75,801 12,880,106
12,880,106
Hotels, restaurants, and leisure (3.5%)
Compass Group PLC (United Kingdom) 699,964 17,643,801
Dalata Hotel Group PLC (Ireland) 1,120,538 5,764,024
Hilton Worldwide Holdings, Inc. 122,376 11,815,403
35,223,228
Household durables (1.0%)
HC Brillant Services GmbH (acquired 8/2/13, cost $17) (Private) (Germany)(NON)(F)(RES) 26 22
Lennar Corp. Class A 202,945 9,654,094
9,654,116
Independent power and renewable electricity producers (3.6%)
NRG Energy, Inc. 1,059,281 36,163,853
36,163,853
Industrial conglomerates (0.7%)
Honeywell International, Inc. 38,921 6,712,316
6,712,316
Insurance (7.1%)
Assured Guaranty, Ltd. 653,195 28,538,089
AXA SA (France) 257,347 6,504,307
Fairfax Financial Holdings, Ltd. (Canada) 21,162 9,804,141
IRB Brasil Resseguros SA (Brazil) 279,400 6,955,075
Prudential PLC (United Kingdom) 465,250 9,595,265
QBE Insurance Group, Ltd. (Australia) 1,189,168 10,130,992
71,527,869
Interactive media and services (1.5%)
Alphabet, Inc. Class C(NON) 12,062 14,675,594
14,675,594
Internet and direct marketing retail (3.1%)
Amazon.com, Inc.(NON) 16,730 31,231,226
Global Fashion Group SA (acquired 7/11/16 and 8/2/13, cost $958,798) (Private) (Luxembourg)(NON)(F)(RES) 29,653 119,946
31,351,172
IT Services (5.4%)
Accenture PLC Class A 41,343 7,961,835
DXC Technology Co. 83,861 4,676,928
Fiserv, Inc.(NON) 152,475 16,075,413
GoDaddy, Inc. Class A(NON) 116,821 8,572,325
Visa, Inc. Class A 92,754 16,510,212
53,796,713
Leisure products (1.1%)
Universal Entertainment Corp. (Japan)(S) 363,100 11,440,859
11,440,859
Oil, gas, and consumable fuels (8.6%)
Cenovus Energy, Inc. (Canada) 2,248,515 20,904,137
Cheniere Energy, Inc.(NON) 136,367 8,884,310
ConocoPhillips 110,187 6,509,848
Enterprise Products Partners LP 611,290 18,405,942
Kinder Morgan, Inc. 760,332 15,678,046
Pioneer Natural Resources Co. 52,965 7,311,289
Suncor Energy, Inc. (Canada) 304,343 8,732,739
86,426,311
Personal products (3.3%)
Shiseido Co., Ltd. (Japan) 119,500 8,796,164
Unilever NV (Netherlands) 412,392 23,787,418
32,583,582
Pharmaceuticals (1.1%)
AstraZeneca PLC (United Kingdom) 131,610 11,296,401
11,296,401
Real estate management and development (1.8%)
Kennedy-Wilson Holdings, Inc. 481,334 10,358,308
Open House Co., Ltd. (Japan) 174,400 7,573,667
17,931,975
Road and rail (1.8%)
Union Pacific Corp. 99,781 17,955,591
17,955,591
Semiconductors and semiconductor equipment (3.1%)
NXP Semiconductors NV 55,200 5,707,128
SCREEN Holdings Co., Ltd. (Japan) 144,300 7,823,479
Sino-American Silicon Products, Inc. (Taiwan) 3,040,000 8,286,241
Texas Instruments, Inc. 71,897 8,987,844
30,804,692
Software (6.4%)
Adobe, Inc.(NON) 36,881 11,022,256
Crowdstrike Holdings, Inc. Class A(NON)(S) 32,280 2,875,180
Instructure, Inc.(NON)(S) 160,160 6,356,750
Microsoft Corp. 145,161 19,781,089
RealPage, Inc.(NON) 125,700 7,853,736
ServiceNow, Inc.(NON) 57,163 15,856,445
63,745,456
Specialty retail (3.0%)
Advance Auto Parts, Inc. 120,374 18,133,139
Lowe's Cos., Inc. 118,011 11,966,315
30,099,454
Technology hardware, storage, and peripherals (0.8%)
Samsung Electronics Co., Ltd. (South Korea) 218,162 8,323,600
8,323,600
Thrifts and mortgage finance (0.9%)
Oportun Financial Corp. (acquired 6/23/15, cost $6,022) (Private)(NON)(F)(RES) 2,113 4,797
Radian Group, Inc. 416,513 9,496,496
9,501,293
Trading companies and distributors (1.7%)
Ashtead Group PLC (United Kingdom) 360,566 9,845,700
Yellow Cake PLC 144A (United Kingdom)(NON) 2,715,892 7,003,423
16,849,123
Total common stocks (cost $891,429,502) $975,405,433









CONVERTIBLE PREFERRED STOCKS (0.4%)(a)
        Shares Value
Oportun Financial Corp. Ser. A-1, 8.00% cv. pfd. (acquired 6/23/15, cost $17) (Private)(NON)(F)(RES) 6 $14
Oportun Financial Corp. Ser. B-1, 8.00% cv. pfd. (acquired 6/23/15, cost $315) (Private)(NON)(F)(RES) 100 251
Oportun Financial Corp. Ser. C-1, 8.00% cv. pfd. (acquired 6/23/15, cost $738) (Private)(NON)(F)(RES) 145 588
Oportun Financial Corp. Ser. D-1, 8.00% cv. pfd. (acquired 6/23/15, cost $1,069) (Private)(NON)(F)(RES) 210 851
Oportun Financial Corp. Ser. E-1, 8.00% cv. pfd. (acquired 6/23/15, cost $598) (Private)(NON)(F)(RES) 109 477
Oportun Financial Corp. Ser. F, 8.00% cv. pfd. (acquired 6/23/15, cost $1,812) (Private)(NON)(F)(RES) 236 1,444
Oportun Financial Corp. Ser. F-1, 8.00% cv. pfd. (acquired 6/23/15, cost $5,087) (Private)(NON)(F)(RES) 1,785 4,052
Oportun Financial Corp. Ser. G, 8.00% cv. pfd. (acquired 6/23/15, cost $6,432) (Private)(NON)(F)(RES) 2,257 5,124
Oportun Financial Corp. Ser. H, 8.00% cv. pfd. (acquired 6/23/15, cost $16,156) (Private)(NON)(F)(RES) 5,674 12,869
Uber Technologies, Inc. Ser. E, 8.00% cv. pfd. (acquired 2/18/15, cost $3,653,997) (Private)(NON)(F)(RES) 108,051 4,097,942
Total convertible preferred stocks (cost $3,686,221) $4,123,612









U.S. TREASURY OBLIGATIONS (—%)(a)
        Principal amount Value
U.S. Treasury Notes
2.00%, 8/15/25(i) $267,000 $270,917
1.50%, 1/31/22(i) 143,000 141,726
1.50%, 10/31/19(i) 9,000 9,018
Total U.S. treasury obligations (cost $421,661) $421,661









SHORT-TERM INVESTMENTS (4.6%)(a)
        Principal amount/
shares		 Value
Putnam Cash Collateral Pool, LLC 2.49%(AFF) Shares 23,931,885 $23,931,885
Putnam Short Term Investment Fund 2.48%(AFF) Shares 20,513,439 20,513,439
State Street Institutional U.S. Government Money Market Fund, Premier Class 2.26%(P) Shares 930,000 930,000
U.S. Treasury Bills 2.759%, 8/1/19(SEGSF) $330,000 330,000
U.S. Treasury Bills 2.072%, 12/5/19(SEGSF) 31,000 30,779
U.S. Treasury Bills 2.027%, 11/21/19 331,000 328,959
Total short-term investments (cost $46,065,063) $46,065,062
TOTAL INVESTMENTS
Total investments (cost $941,602,447) $1,026,015,768









FORWARD CURRENCY CONTRACTS at 7/31/19 (aggregate face value $175,870,858) (Unaudited)
  Counterparty Currency Contract type* Delivery
date		 Value Aggregate face value Unrealized
appreciation/
(depreciation)
Bank of America N.A.
British Pound Sell 9/18/19 $13,622,955 $14,126,934 $503,979
Canadian Dollar Sell 10/16/19 3,063,495 3,084,172 20,677
Euro Buy 9/18/19 4,094,216 4,161,185 (66,969)
Japanese Yen Buy 8/21/19 79,691 79,847 (156)
Japanese Yen Sell 8/21/19 79,691 80,698 1,007
Barclays Bank PLC
Australian Dollar Buy 10/16/19 51,553 52,756 (1,203)
Hong Kong Dollar Buy 8/21/19 6,197,757 6,180,419 17,338
Japanese Yen Buy 8/21/19 114,142 114,893 (751)
Japanese Yen Sell 8/21/19 114,142 114,368 226
Swedish Krona Buy 9/18/19 1,996,778 2,018,405 (21,627)
Swiss Franc Buy 9/18/19 7,821,598 7,827,801 (6,203)
Citibank, N.A.
British Pound Sell 9/18/19 9,224,014 9,600,039 376,025
Canadian Dollar Sell 10/16/19 4,325 17,402 13,077
Danish Krone Sell 9/18/19 4,524,260 4,602,562 78,302
Euro Buy 9/18/19 96,563 98,927 (2,364)
Japanese Yen Buy 8/21/19 486,318 477,019 9,299
Japanese Yen Sell 8/21/19 486,318 486,656 338
Goldman Sachs International
British Pound Sell 9/18/19 11,710,356 12,203,233 492,877
Canadian Dollar Sell 10/16/19 409,938 412,631 2,693
Euro Buy 9/18/19 49,337 50,127 (790)
Japanese Yen Buy 8/21/19 109,320 109,528 (208)
Japanese Yen Sell 8/21/19 109,320 110,359 1,039
New Taiwan Dollar Sell 8/21/19 8,975,615 9,022,399 46,784
HSBC Bank USA, National Association
British Pound Sell 9/18/19 2,532,904 2,590,469 57,565
Canadian Dollar Sell 10/16/19 89,985 90,573 588
Chinese Yuan (Offshore) Buy 8/21/19 163,956 167,738 (3,782)
Euro Buy 9/18/19 11,837,057 12,042,602 (205,545)
JPMorgan Chase Bank N.A.
Australian Dollar Buy 10/16/19 139,235 142,480 (3,245)
British Pound Sell 9/18/19 455,021 474,203 19,182
Canadian Dollar Sell 10/16/19 344,384 346,624 2,240
Euro Buy 9/18/19 4,352,570 4,421,991 (69,421)
Japanese Yen Buy 8/21/19 4,311 4,226 85
Japanese Yen Sell 8/21/19 4,311 4,319 8
Norwegian Krone Buy 9/18/19 1,831,782 1,864,377 (32,595)
Singapore Dollar Buy 8/21/19 3,821,766 3,858,898 (37,132)
South Korean Won Sell 8/21/19 7,568,041 7,696,459 128,418
Swedish Krona Buy 9/18/19 6,214,233 6,368,313 (154,080)
Swiss Franc Buy 9/18/19 10,473,387 10,499,367 (25,980)
NatWest Markets PLC
Australian Dollar Buy 10/16/19 4,285,105 4,350,497 (65,392)
Canadian Dollar Buy 10/16/19 97,117 97,433 (316)
Euro Buy 9/18/19 10,354,494 10,510,601 (156,107)
Japanese Yen Sell 8/21/19 4,278,413 4,283,902 5,489
State Street Bank and Trust Co.
Australian Dollar Buy 10/16/19 341,062 349,012 (7,950)
Euro Buy 9/18/19 2,010,938 2,042,661 (31,723)
Israeli Shekel Buy 10/16/19 1,916,892 1,888,711 28,181
Japanese Yen Buy 8/21/19 9,152,499 9,128,101 24,398
Japanese Yen Sell 8/21/19 9,152,498 9,139,337 (13,161)
UBS AG
Australian Dollar Buy 10/16/19 7,381,191 7,551,618 (170,427)
WestPac Banking Corp.
Canadian Dollar Sell 10/16/19 365,022 367,377 2,355
Euro Buy 9/18/19 547,933 556,609 (8,676)
Unrealized appreciation 1,832,170
Unrealized (depreciation) (1,085,803)
Total $746,367
* The exchange currency for all contracts listed is the United States Dollar.













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, 2018 through July 31, 2019 (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 $1,000,779,291.
(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 $4,248,392, 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
10/31/18		 Purchase
cost		 Sale
proceeds		 Investment
income		 Shares outstanding
and fair
value as  of
7/31/19
Short-term investments
Putnam Cash Collateral Pool, LLC*# $27,708,437 $133,257,014 $137,033,566 $422,747 $23,931,885
Putnam Short Term Investment Fund** — 195,821,103 175,307,664 214,917 20,513,439
Total Short-term investments $27,708,437 $329,078,117 $312,341,230 $637,664 $44,445,324
* 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 $23,931,885, 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 $23,045,261.
** 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 $352,801.
(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. At the close of the reporting period, fair value pricing was also used for certain foreign securities in the portfolio.
(i) This security was pledged, or purchased with cash that was pledged, to the fund for collateral on certain derivative contracts.
(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.
(R) Real Estate Investment Trust.
(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 $376,046 to cover certain derivative contracts.
Unless otherwise noted, the rates quoted in Short-term investments security descriptions represent the weighted average yield to maturity.
144A after the name of an issuer represents securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
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 64.3%
United Kingdom 9.3
Japan 8.2
Canada 3.9
Netherlands 2.4
France 2.1
Ireland 1.7
Switzerland 1.4
Denmark 1.1
Australia 1.0
Italy 1.0
South Korea 0.8
Taiwan 0.8
Brazil 0.7
Hong Kong 0.7
India 0.5
Other 0.1
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. 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 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.
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 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 $729,243 on open derivative contracts subject to the Master Agreements. Collateral posted by the fund at period end for these agreements totaled $352,801 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*:
Communication services $38,710,340 $12,090,247 $—
Consumer discretionary 82,800,177 51,897,031 119,968
Consumer staples 50,832,355 67,224,004 —
Energy 86,426,311 — —
Financials 78,283,078 52,900,863 4,797
Health care 72,525,422 11,296,401 —
Industrials 64,446,549 24,536,561 15
Information technology 132,237,141 24,433,320 —
Materials 40,486,072 25,226,695 —
Real estate 10,358,308 12,405,925 —
Utilities 36,163,853 — —
Total common stocks 693,269,606 282,011,047 124,780
Convertible preferred stocks — — 4,123,612
U.S. treasury obligations — 421,661 —
Short-term investments 21,443,439 24,621,623 —
Totals by level $714,713,045 $307,054,331 $4,248,392
 

Valuation inputs
Other financial instruments: Level 1 Level 2 Level 3
Forward currency contracts $— $746,367 $—
Totals by level $— $746,367 $—
* Common stock classifications are presented at the sector level, which may differ from the fund's portfolio presentation.
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 $1,832,170 $1,085,803
Total $1,832,170 $1,085,803
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) $169,000,000

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