NPORT-EX 2 b_841nport093021.htm QUARTERLY PORTFOLIO HOLDINGS
Putnam International Equity Fund
The fund's portfolio
9/30/21 (Unaudited)


COMMON STOCKS (98.7%)(a)
        Shares Value
Canada (1.5%)
Cenovus Energy, Inc. 489,200 $4,932,168
Thomson Reuters Corp. 76,400 8,447,671
13,379,839
China (1.0%)
Alibaba Group Holding, Ltd.(NON) 479,100 8,911,266
8,911,266
Denmark (1.1%)
Orsted AS 75,753 9,994,892
9,994,892
France (10.0%)
AXA SA 581,615 16,180,522
BNP Paribas SA 268,375 17,190,872
CIE Generale Des Etablissements Michelin SCA 82,524 12,665,020
Compagnie De Saint-Gobain 210,438 14,173,434
Schneider Electric SA 82,313 13,685,373
Thales SA 145,704 14,070,999
87,966,220
Germany (8.8%)
Auto1 Group SE 144A(NON) 124,351 4,546,300
Brenntag AG 177,748 16,580,766
Deutsche Boerse AG 73,638 11,987,265
Deutsche Post AG 278,387 17,545,759
HC Brillant Services GmbH (acquired various dates from 8/2/13 to 8/31/16, cost $20) (Private)(F)(RES)(NON) 30 —
Merck KGaA 79,863 17,366,921
Zalando SE(NON) 106,977 9,830,506
77,857,517
Greece (1.1%)
OPAP SA 628,111 9,688,871
9,688,871
Hong Kong (1.0%)
AIA Group, Ltd. 779,800 8,978,727
8,978,727
India (3.9%)
Reliance Industries, Ltd. 144A 273,907 18,514,903
Tata Consultancy Services, Ltd. 310,250 15,710,146
34,225,049
Ireland (5.7%)
Bank of Ireland Group PLC(NON) 2,397,028 14,128,479
CRH PLC 285,553 13,319,904
Flutter Entertainment PLC(NON) 68,785 13,503,300
ICON PLC(NON) 35,300 9,249,306
50,200,989
Italy (2.7%)
Moncler SpA 111,964 6,847,805
Nexi SpA(NON) 720,600 13,444,054
Recordati SpA 57,962 3,371,516
23,663,375
Japan (18.2%)
Asahi Group Holdings, Ltd. 276,500 13,394,200
Hoya Corp. 124,400 19,455,900
KDDI Corp. 442,400 14,620,218
MinebeaMitsumi, Inc. 583,400 14,896,687
Mitsubishi UFJ Financial Group, Inc. 3,056,100 17,842,863
Oracle Corp. 73,000 6,423,006
Renesas Electronics Corp.(NON) 1,418,600 17,503,766
Sony Group Corp. 215,200 23,964,980
Yamaha Motor Co., Ltd. 598,200 16,656,741
ZOZO, Inc. 430,600 16,123,580
160,881,941
Netherlands (2.1%)
Adyen NV(NON) 2,672 7,429,658
Akzo Nobel NV 98,425 10,717,579
18,147,237
Portugal (1.8%)
Energias de Portugal (EDP) SA 3,009,089 15,784,760
15,784,760
Russia (1.2%)
Sberbank of Russia PJSC ADR 572,908 10,644,764
10,644,764
South Korea (5.5%)
Hana Financial Group, Inc. 412,520 15,922,779
LG Chem, Ltd. 7,129 4,656,649
Samsung Electronics Co., Ltd. (Preference) 233,014 13,638,902
SK Telecom Co., Ltd. 53,239 14,517,440
48,735,770
Spain (2.5%)
Amadeus IT Holding SA Class A(NON) 132,701 8,717,462
CaixaBank SA 4,230,022 13,116,740
21,834,202
Switzerland (7.3%)
ABB, Ltd. 424,284 14,142,294
Coca-Cola HBC AG 307,529 9,884,532
Lonza Group AG 23,277 17,438,917
Roche Holding AG 31,752 11,586,423
SIG Combibloc Group AG 439,597 11,659,061
64,711,227
Taiwan (1.1%)
Taiwan Semiconductor Manufacturing Co., Ltd. 479,000 9,877,480
9,877,480
United Arab Emirates (1.2%)
Network International Holdings PLC(NON) 2,168,223 10,607,319
10,607,319
United Kingdom (17.1%)
Abcam PLC(NON) 451,918 8,987,095
Allfunds Group PLC(NON) 537,690 10,340,097
AstraZeneca PLC 180,177 21,690,536
CNH Industrial NV 579,670 9,815,108
Coca-Cola Europacific Partners PLC 210,400 11,633,016
Diageo PLC 437,616 21,085,675
Kingfisher PLC 1,456,276 6,588,561
Liberty Global PLC Class C(NON) 612,100 18,032,466
Oxford Nanopore Technologies PLC(NON) 224,917 1,856,504
Prudential PLC 621,300 12,061,088
Royal Dutch Shell PLC Class B 790,918 17,522,251
SSE PLC 563,698 11,836,828
151,449,225
United States (3.9%)
Ginkgo Bioworks Holdings, Inc.(NON)(S) 432,900 5,017,311
Linde PLC 47,578 14,146,385
Otis Worldwide Corp. 185,800 15,287,622
34,451,318
Total common stocks (cost $743,343,735) $871,991,988








U.S. TREASURY OBLIGATIONS (0.1%)(a)
        Principal amount Value
U.S. Treasury Bonds
3.375%, 11/15/48(i) $239,000 $307,612
3.375%, 5/15/44(i) 7,000 8,790
U.S. Treasury Inflation Index Notes 0.25%, 7/15/29(i) 128,033 152,158
U.S. Treasury Notes
1.875%, 6/30/26(i) 145,000 151,980
1.75%, 11/15/29(i) 118,000 122,079
1.625%, 5/15/26(i) 27,000 28,019
Total U.S. treasury obligations (cost $770,638) $770,638








SHORT-TERM INVESTMENTS (1.7%)(a)
        Principal amount/
shares		 Value
Putnam Cash Collateral Pool, LLC 0.09%(AFF) Shares 4,865,000 $4,865,000
Putnam Short Term Investment Fund Class P 0.08%(AFF) Shares 4,234,990 4,234,990
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.03%(P) Shares 1,868,000 1,868,000
U.S. Treasury Bills 0.037%, 10/7/21(SEGSF) $200,000 199,999
U.S. Treasury Bills 0.041%, 10/19/21(SEGSF) 700,000 699,975
U.S. Treasury Bills 0.035%, 4/21/22 700,000 699,804
U.S. Treasury Bills 0.042%, 10/14/21(SEGSF) 2,300,000 2,299,977
U.S. Treasury Bills 0.021%, 10/5/21 300,000 299,999
Total short-term investments (cost $15,167,802) $15,167,744
TOTAL INVESTMENTS
Total investments (cost $759,282,175) $887,930,370








FORWARD CURRENCY CONTRACTS at 9/30/21 (aggregate face value $662,830,977) (Unaudited)
  Counterparty Currency Contract type* Delivery
date		 Value Aggregate face value Unrealized
appreciation/
(depreciation)
Bank of America N.A.
Australian Dollar Buy 10/20/21 $15,364,383 $15,794,478 $(430,095)
British Pound Sell 12/15/21 5,992,903 6,089,715 96,812
Canadian Dollar Sell 10/20/21 1,200,107 1,213,467 13,360
Chinese Yuan (Offshore) Sell 11/17/21 9,339,260 9,248,821 (90,439)
Euro Buy 12/15/21 2,485,090 2,550,516 (65,426)
Japanese Yen Buy 11/17/21 47,901,323 48,287,199 (385,876)
Norwegian Krone Buy 12/15/21 5,495,959 5,539,842 (43,883)
Swedish Krona Buy 12/15/21 2,888,649 2,945,640 (56,991)
Swiss Franc Buy 12/15/21 4,663,381 4,752,982 (89,601)
Barclays Bank PLC
British Pound Sell 12/15/21 2,076,286 2,131,840 55,554
Canadian Dollar Sell 10/20/21 3,332,129 3,369,377 37,248
Euro Sell 12/15/21 7,005,164 7,177,436 172,272
Hong Kong Dollar Buy 11/17/21 3,195,564 3,196,843 (1,279)
Japanese Yen Sell 11/17/21 446,877 454,201 7,324
Swedish Krona Buy 12/15/21 61,175 62,300 (1,125)
Swedish Krona Sell 12/15/21 61,175 61,663 488
Citibank, N.A.
Australian Dollar Buy 10/20/21 3,808,742 3,938,797 (130,055)
British Pound Sell 12/15/21 6,353,909 6,525,658 171,749
Canadian Dollar Buy 10/20/21 6,239,275 6,309,867 (70,592)
Chinese Yuan (Offshore) Sell 11/17/21 5,866,887 5,809,591 (57,296)
Danish Krone Buy 12/15/21 10,961,770 11,220,418 (258,648)
Euro Buy 12/15/21 6,177,110 6,325,787 (148,677)
Hong Kong Dollar Buy 11/17/21 3,330,898 3,332,079 (1,181)
Japanese Yen Buy 11/17/21 5,725,083 5,771,812 (46,729)
New Zealand Dollar Buy 10/20/21 39,554 39,812 (258)
New Zealand Dollar Sell 10/20/21 39,554 40,311 757
Swedish Krona Buy 12/15/21 88,836 90,470 (1,634)
Swedish Krona Sell 12/15/21 88,836 89,543 707
Swiss Franc Buy 12/15/21 79,334 80,851 (1,517)
Swiss Franc Sell 12/15/21 79,334 79,415 81
Credit Suisse International
British Pound Buy 12/15/21 2,170,613 2,228,473 (57,860)
Goldman Sachs International
Australian Dollar Sell 10/20/21 1,677,567 1,757,048 79,481
British Pound Buy 12/15/21 11,150,064 11,448,137 (298,073)
Chinese Yuan (Offshore) Buy 11/17/21 182,446 195,141 (12,695)
Euro Buy 12/15/21 2,655,155 2,716,406 (61,251)
Japanese Yen Sell 11/17/21 5,572,712 5,620,996 48,284
South Korean Won Sell 11/17/21 3,295,735 3,405,987 110,252
Swedish Krona Buy 12/15/21 1,816,363 1,849,767 (33,404)
Swiss Franc Buy 12/15/21 2,298,850 2,342,953 (44,103)
HSBC Bank USA, National Association
Australian Dollar Buy 10/20/21 7,412,442 7,670,683 (258,241)
British Pound Buy 12/15/21 30,937,036 31,762,083 (825,047)
Chinese Yuan (Offshore) Buy 11/17/21 701,821 695,040 6,781
Euro Buy 12/15/21 1,013,780 1,050,569 (36,789)
Hong Kong Dollar Buy 11/17/21 2,055,219 2,055,961 (742)
Japanese Yen Sell 11/17/21 4,193,034 4,227,948 34,914
Swedish Krona Buy 12/15/21 4,561,676 4,647,157 (85,481)
Swiss Franc Sell 12/15/21 8,746,593 8,914,758 168,165
JPMorgan Chase Bank N.A.
Australian Dollar Buy 10/20/21 108,232 111,887 (3,655)
Australian Dollar Sell 10/20/21 108,232 108,897 665
British Pound Buy 12/15/21 2,195,678 2,258,313 (62,635)
Canadian Dollar Sell 10/20/21 3,042,386 3,076,284 33,898
Euro Buy 12/15/21 21,550,051 22,047,505 (497,454)
Hong Kong Dollar Buy 11/17/21 89,777 89,832 (55)
Hong Kong Dollar Sell 11/17/21 89,777 89,809 32
Japanese Yen Sell 11/17/21 7,909,536 7,974,596 65,060
New Zealand Dollar Buy 10/20/21 1,692,388 1,703,821 (11,433)
Norwegian Krone Buy 12/15/21 126,650 127,614 (964)
Norwegian Krone Sell 12/15/21 126,650 127,473 823
Singapore Dollar Buy 11/17/21 8,356,306 8,394,800 (38,494)
South Korean Won Sell 11/17/21 41,477,523 42,945,053 1,467,530
Swedish Krona Buy 12/15/21 9,561,292 9,738,724 (177,432)
Swiss Franc Buy 12/15/21 95,351 95,451 (100)
Swiss Franc Sell 12/15/21 95,351 97,166 1,815
Morgan Stanley & Co. International PLC
Australian Dollar Buy 10/20/21 177,640 183,664 (6,024)
Australian Dollar Sell 10/20/21 177,640 178,732 1,092
British Pound Buy 12/15/21 6,517,230 6,687,695 (170,465)
Canadian Dollar Sell 10/20/21 6,088,640 6,156,556 67,916
Euro Sell 12/15/21 13,908,823 14,200,170 291,347
Japanese Yen Sell 11/17/21 7,043,204 7,098,456 55,252
New Zealand Dollar Buy 10/20/21 1,318,664 1,327,114 (8,450)
Swedish Krona Buy 12/15/21 88,596 90,237 (1,641)
Swedish Krona Sell 12/15/21 88,596 89,302 706
Swiss Franc Buy 12/15/21 8,925,685 9,097,166 (171,481)
NatWest Markets PLC
British Pound Sell 12/15/21 5,843,866 5,995,661 151,795
Canadian Dollar Sell 10/20/21 6,497,360 6,569,414 72,054
Euro Sell 12/15/21 10,552,177 10,811,022 258,845
Hong Kong Dollar Sell 11/17/21 2,279,071 2,279,872 801
Japanese Yen Buy 11/17/21 2,705,871 2,728,165 (22,294)
Swedish Krona Buy 12/15/21 7,388,578 7,525,624 (137,046)
Swiss Franc Buy 12/15/21 5,899,180 6,012,205 (113,025)
State Street Bank and Trust Co.
Australian Dollar Buy 10/20/21 6,824,357 7,039,622 (215,265)
British Pound Sell 12/15/21 16,540,215 16,982,008 441,793
Canadian Dollar Buy 10/20/21 4,979,246 5,034,665 (55,419)
Chinese Yuan (Offshore) Buy 11/17/21 5,742,658 5,687,058 55,600
Euro Sell 12/15/21 16,764,437 17,190,472 426,035
Hong Kong Dollar Buy 11/17/21 71,072 71,094 (22)
Hong Kong Dollar Sell 11/17/21 71,072 71,113 41
Israeli Shekel Buy 10/20/21 5,081,000 5,013,939 67,061
Japanese Yen Buy 11/17/21 21,971,677 22,156,731 (185,054)
New Zealand Dollar Buy 10/20/21 45,076 45,357 (281)
New Zealand Dollar Sell 10/20/21 45,076 45,939 863
Swedish Krona Buy 12/15/21 165,213 168,254 (3,041)
Swedish Krona Sell 12/15/21 165,213 166,529 1,316
Toronto-Dominion Bank
British Pound Buy 12/15/21 2,682,947 2,754,668 (71,721)
Canadian Dollar Sell 10/20/21 8,351,719 8,445,219 93,500
Euro Sell 12/15/21 3,449,451 3,535,513 86,062
UBS AG
Australian Dollar Buy 10/20/21 87,482 88,774 (1,292)
Australian Dollar Sell 10/20/21 87,482 88,019 537
British Pound Sell 12/15/21 16,906,206 17,359,788 453,582
Canadian Dollar Buy 10/20/21 9,596,589 9,703,554 (106,965)
Chinese Yuan (Offshore) Buy 11/17/21 122,559 121,380 1,179
Chinese Yuan (Offshore) Sell 11/17/21 122,559 121,989 (570)
Euro Sell 12/15/21 24,005,095 24,582,836 577,741
Hong Kong Dollar Buy 11/17/21 10,441,273 10,439,746 1,527
Japanese Yen Sell 11/17/21 1,536,233 1,578,206 41,973
Norwegian Krone Buy 12/15/21 41,489 41,829 (340)
Norwegian Krone Sell 12/15/21 41,489 41,759 270
Swedish Krona Buy 12/15/21 4,877,803 4,974,979 (97,176)
Swiss Franc Buy 12/15/21 5,623,555 5,664,584 (41,029)
WestPac Banking Corp.
Australian Dollar Buy 10/20/21 9,507,972 9,833,726 (325,754)
British Pound Sell 12/15/21 19,522,315 20,052,687 530,372
Canadian Dollar Sell 10/20/21 5,260,147 5,319,122 58,975
Euro Buy 12/15/21 15,114,594 15,472,486 (357,892)
Japanese Yen Sell 11/17/21 1,785,271 1,799,214 13,943
Unrealized appreciation 6,326,230
Unrealized (depreciation) (6,479,457)
Total $(153,227)
* The exchange currency for all contracts listed is the United States Dollar.












Key to holding's abbreviations
ADR American Depository Receipts: represents ownership of foreign securities on deposit with a custodian bank.
PJSC Public Joint Stock Company
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 July 1, 2021 through September 30, 2021 (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 "the SEC" represent the Securities and Exchange Commission, 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 $883,694,873.
(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 $—, or less than 0.1% 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
6/30/21		 Purchase
cost		 Sale
proceeds		 Investment
income		 Shares outstanding
and fair
value as of
9/30/21
Short-term investments
Putnam Cash Collateral Pool, LLC*# $2,689,600 $6,817,315 $4,641,915 $778 $4,865,000
Putnam Short Term Investment Fund** — 78,190,482 73,955,492 1,634 4,234,990
Total Short-term investments $2,689,600 $85,007,797 $78,597,407 $2,412 $9,099,990
* 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 receives cash collateral, 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 and there were no realized or unrealized gains or losses during the period.
# At the close of the reporting period, the fund received cash collateral of $4,865,000 for securities loaned. 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 $4,515,464.
** 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 $3,075,000.
(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.
(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 $3,017,299 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.
The fund had the following sector concentrations greater than 10% at the close of the reporting period (as a percentage of net assets):
Financials 16.8%
Industrials 15.7
Consumer discretionary 14.6
Health care 13.1
Information technology 11.7
The fund had the following industry concentration greater than 10% at the close of the reporting period (as a percentage of net assets):
Banks 10.1%
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 $2,941,597 on open derivative contracts subject to the Master Agreements. Collateral posted by the fund at period end for these agreements totaled $3,075,000 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:
Canada $13,379,839 $— $—
China — 8,911,266 —
Denmark — 9,994,892 —
France — 87,966,220 —
Germany — 77,857,517 —
Greece — 9,688,871 —
Hong Kong — 8,978,727 —
India — 34,225,049 —
Ireland 9,249,306 40,951,683 —
Italy — 23,663,375 —
Japan — 160,881,941 —
Netherlands — 18,147,237 —
Portugal — 15,784,760 —
Russia — 10,644,764 —
South Korea — 48,735,770 —
Spain — 21,834,202 —
Switzerland — 64,711,227 —
Taiwan — 9,877,480 —
United Arab Emirates — 10,607,319 —
United Kingdom 31,521,986 119,927,239 —
United States 20,304,933 14,146,385 —
Total common stocks 74,456,064 797,535,924 —
U.S. treasury obligations — 770,638 —
Short-term investments 1,868,000 13,299,744 —
Totals by level $76,324,064 $811,606,306 $—
  Valuation inputs
Other financial instruments: Level 1 Level 2 Level 3
Forward currency contracts $— $(153,227) $—
Totals by level $— $(153,227) $—
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.
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) $744,300,000
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