0000928816-12-000807.txt : 20120529 0000928816-12-000807.hdr.sgml : 20120529 20120529123812 ACCESSION NUMBER: 0000928816-12-000807 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20120331 FILED AS OF DATE: 20120529 DATE AS OF CHANGE: 20120529 EFFECTIVENESS DATE: 20120529 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PUTNAM INTERNATIONAL EQUITY FUND /MA/ CENTRAL INDEX KEY: 0000868648 IRS NUMBER: 046661045 STATE OF INCORPORATION: MA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-06190 FILM NUMBER: 12873345 BUSINESS ADDRESS: STREET 1: ONE POST OFFICE SQ CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 6172921471 FORMER COMPANY: FORMER CONFORMED NAME: PUTNAM INTERNATIONAL GROWTH FUND /MA/ DATE OF NAME CHANGE: 19960805 FORMER COMPANY: FORMER CONFORMED NAME: PUTNAM OVERSEAS GROWTH FUND DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: PUTNAM INTERNATIONAL GROWTH FUND DATE OF NAME CHANGE: 19901107 0000868648 S000006181 PUTNAM INTERNATIONAL EQUITY FUND /MA/ C000017024 Class A Shares POVSX C000017025 Class B Shares POVBX C000017026 Class C Shares PIGCX C000017027 Class M Shares POVMX C000017028 Class R Shares PIERX C000017029 Class Y Shares POVYX N-Q 1 a_intlequityfund.htm PUTNAM INTERNATIONAL EQUITY FUND a_intlequityfund.htm


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

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY



Investment Company Act file number: (811-06190)
Exact name of registrant as specified in charter: Putnam International Equity Fund
Address of principal executive offices: One Post Office Square, Boston, Massachusetts 02109
Name and address of agent for service: Robert T. Burns, Vice President
One Post Office Square
Boston, Massachusetts 02109
Copy to:         John W. Gerstmayr, Esq.
Ropes & Gray LLP
800 Boylston Street
Boston, Massachusetts 02199-3600
Registrant’s telephone number, including area code: (617) 292-1000
Date of fiscal year end: June 30, 2012
Date of reporting period: March 31, 2012



Item 1. Schedule of Investments:













Putnam International Equity Fund

The fund's portfolio
3/31/12 (Unaudited)
COMMON STOCKS (99.7%)(a)
Shares Value
Australia (2.7%)
Macquarie Group, Ltd. 378,534 $11,402,394
Origin Energy, Ltd. 514,271 7,111,645
Telstra Corp., Ltd. 3,278,064 11,171,464
29,685,503
Belgium (1.4%)
Anheuser-Busch InBev NV 215,789 15,765,559
15,765,559
Brazil (2.1%)
Cia Hering 246,300 6,361,744
Itau Unibanco Holding SA ADR (Preference) 364,800 7,000,512
Localiza Rent a Car SA 496,900 9,146,150
22,508,406
Canada (1.9%)
Agrium, Inc. 107,660 9,292,144
Canadian Natural Resources, Ltd. 340,000 11,269,136
20,561,280
China (4.6%)
Baidu, Inc. ADR(NON) 51,100 7,448,847
Brilliance China Automotive Holdings, Inc.(NON) 4,640,000 5,019,091
China Mobile, Ltd. 805,500 8,863,503
China National Materials Co., Ltd. 18,732,000 7,598,406
Industrial and Commercial Bank of China, Ltd. 15,374,000 9,918,646
PCD Stores Group, Ltd. 14,454,000 2,047,427
Perfect World Co., Ltd. ADR(NON) 339,000 5,485,020
Zhongpin, Inc.(NON) 343,772 3,867,435
50,248,375
France (9.3%)
AXA SA 562,039 9,317,419
Christian Dior SA 144,193 22,125,283
Sanofi 400,386 31,094,510
Technip SA 126,165 14,862,955
Valeo SA 234,179 12,280,597
Vinci SA 226,830 11,828,653
101,509,417
Germany (12.1%)
Allianz SE 119,068 14,207,921
Biotest AG-Vorzugsaktien (Germany) 78,319 4,663,872
Deutsche Bank AG 348,621 17,345,173
Deutsche Post AG 1,241,445 23,900,243
Kabel Deutschland Holding AG(NON) 230,526 14,238,123
Lanxess AG 184,922 15,286,153
MTU Aero Engines Holding AG 178,675 14,390,864
Porsche Automobil Holding SE (Preference) 248,110 14,642,512
Siemens AG 140,866 14,201,315
132,876,176
Hong Kong (1.4%)
Henderson Land Development Co., Ltd. 1,633,000 9,010,830
Sands China, Ltd. 1,546,400 6,043,775
15,054,605
India (0.4%)
Housing Development Finance Corp. 309,043 4,084,378
4,084,378
Ireland (3.6%)
Covidien PLC 224,200 12,259,256
Kerry Group PLC Class A 260,741 12,066,931
WPP PLC 1,081,587 14,782,845
39,109,032
Israel (0.9%)
Teva Pharmaceutical Industries, Ltd. ADR 224,000 10,093,440
10,093,440
Italy (2.0%)
Fiat SpA(S) 2,212,498 13,007,161
UniCredit SpA 1,733,228 8,682,391
21,689,552
Japan (19.5%)
Aisin Seiki Co., Ltd. 507,600 17,821,501
Astellas Pharma, Inc. 201,300 8,268,938
Canon, Inc. 181,500 8,573,940
Inpex Corp. 2,653 17,917,446
Japan Tobacco, Inc. 2,368 13,331,980
Jupiter Telecommunications Co., Ltd. 3,208 3,213,039
Konami Corp. 425,100 12,048,866
Lawson, Inc. 230,300 14,496,351
Mitsubishi Electric Corp. 1,341,000 11,859,514
Mitsubishi UFJ Financial Group, Inc. 4,220,900 21,010,158
Nippon Telegraph & Telephone (NTT) Corp. 318,700 14,458,361
Nissan Motor Co., Ltd. 1,666,800 17,741,341
ORIX Corp. 216,720 20,684,886
Sumitomo Heavy Industries, Ltd. 1,247,000 6,930,289
Tokyo Gas Co., Ltd. 3,560,000 16,774,194
Yamada Denki Co., Ltd. 132,180 8,256,260
213,387,064
Malaysia (0.6%)
AirAsia Bhd 5,349,100 6,023,958
6,023,958
Netherlands (1.1%)
ING Groep NV GDR(NON) 1,383,931 11,530,390
11,530,390
Norway (0.9%)
DnB NOR ASA 780,143 10,027,915
10,027,915
Russia (1.8%)
Gazprom OAO ADR 684,671 8,352,986
Sberbank of Russia ADR(NON) 871,936 11,195,658
19,548,644
South Korea (1.5%)
SK Hynix, Inc. 222,430 5,742,092
Samsung Electronics Co., Ltd. 10,017 11,271,943
17,014,035
Spain (0.7%)
Grifols SA(NON) 336,498 7,180,596
7,180,596
Taiwan (1.2%)
Hon Hai Precision Industry Co., Ltd. 3,330,000 12,918,565
12,918,565
Turkey (0.6%)
Turkiye Vakiflar Bankasi Tao 3,390,782 6,430,367
6,430,367
United Kingdom (24.2%)
Associated British Foods PLC 760,151 14,833,519
Barclays PLC 4,485,394 16,877,757
BG Group PLC 992,982 22,998,232
Centrica PLC 2,317,517 11,728,539
Compass Group PLC 1,325,870 13,901,387
Kingfisher PLC 2,799,579 13,733,809
Pearson PLC 562,733 10,486,071
Prudential PLC 1,518,226 18,152,319
Rio Tinto PLC 540,250 29,777,933
Royal Bank of Scotland Group PLC(NON) 14,855,860 6,567,806
Royal Dutch Shell PLC Class A 629,232 21,975,993
SSE PLC 790,484 16,803,609
Standard Chartered PLC 383,888 9,578,856
Tullow Oil PLC 483,577 11,811,068
Vodafone Group PLC 7,792,572 21,463,398
WM Morrison Supermarkets PLC 2,113,564 10,074,330
Xstrata PLC 832,866 14,227,575
264,992,201
United States (5.2%)
Accenture PLC Class A 98,900 6,379,050
ACE, Ltd. 108,000 7,905,600
Apple, Inc.(NON) 23,200 13,907,704
Beam, Inc. 87,700 5,136,589
CF Industries Holdings, Inc. 45,000 8,219,250
Tyco International, Ltd. 275,918 15,501,114
57,049,307
Total common stocks (cost $994,185,842) $1,089,288,765

U.S. TREASURY OBLIGATIONS (—%)(a)(i)
Principal amount Value
U.S. Treasury Inflation Protected Notes 1 7/8s, July 15, 2013 $104,856 $110,802
Total U.S. treasury Obligations (cost $110,802) $110,802

SHORT-TERM INVESTMENTS (0.6%)(a)
Principal amount/shares Value
Putnam Cash Collateral Pool, LLC 0.20%(d) 3,976,075 $3,976,075
Putnam Money Market Liquidity Fund 0.11%(e) 1,266,314 1,266,314
U.S. Treasury Bills zero%, September 6, 2012(i) $30,000 29,985
U.S. Treasury Bills with effective yields ranging from 0.164% to 0.192%, March 7, 2013(SEGSF) 980,000 978,434
U.S. Treasury Bills with an effective yield of 0.150%, February 7, 2013(SEGSF) 140,000 139,798
Total short-term investments (cost $6,390,525) $6,390,606

TOTAL INVESTMENTS
Total investments (cost $1,000,687,169)(b) $1,095,790,173













FORWARD CURRENCY CONTRACTS at 3/31/12 (aggregate face value $312,198,917) (Unaudited)


Unrealized
Contract Delivery Aggregate appreciation/
Counterparty Currency type date Value face value (depreciation)
Bank of America, N.A.
Australian Dollar Buy 4/18/12 $2,966,913 $3,085,028 $(118,115)
British Pound Sell 4/18/12 1,706,502 1,701,502 (5,000)
Canadian Dollar Buy 4/18/12 461,031 466,453 (5,422)
Canadian Dollar Sell 4/18/12 461,031 460,580 (451)
Euro Buy 4/18/12 2,836,426 2,806,474 29,952
Euro Sell 4/18/12 2,836,426 2,835,289 (1,137)
Norwegian Krone Sell 4/18/12 2,707,966 2,744,812 36,846
Swedish Krona Buy 4/18/12 3,389,490 3,355,466 34,024
Swiss Franc Buy 4/18/12 7,257,659 7,233,056 24,603
Barclays Bank PLC
British Pound Sell 4/18/12 2,271,551 2,264,185 (7,366)
Canadian Dollar Buy 4/18/12 1,222,332 1,198,348 23,984
Euro Buy 4/18/12 3,513,856 3,512,394 1,462
Hong Kong Dollar Buy 4/18/12 3,730,202 3,733,233 (3,031)
Japanese Yen Sell 4/18/12 4,067,791 4,148,842 81,051
Norwegian Krone Sell 4/18/12 2,165,973 2,196,683 30,710
Singapore Dollar Buy 4/18/12 7,133,612 7,165,047 (31,435)
Swedish Krona Buy 4/18/12 894,549 885,484 9,065
Swiss Franc Buy 4/18/12 6,912,415 6,887,917 24,498
Citibank, N.A.
Australian Dollar Buy 4/18/12 3,181,900 3,308,267 (126,367)
British Pound Sell 4/18/12 2,664,830 2,656,406 (8,424)
Danish Krone Buy 4/18/12 11,176,823 11,082,465 94,358
Euro Buy 4/18/12 1,603,743 1,586,692 17,051
Euro Sell 4/18/12 1,603,743 1,602,847 (896)
Hong Kong Dollar Buy 4/18/12 3,373,515 3,376,374 (2,859)
Norwegian Krone Sell 4/18/12 161,687 183,501 21,814
Singapore Dollar Buy 4/18/12 10,978 11,029 (51)
Swedish Krona Buy 4/18/12 933,507 924,344 9,163
Swiss Franc Buy 4/18/12 7,628,054 7,603,203 24,851
Credit Suisse AG
Australian Dollar Buy 4/18/12 1,300,474 1,352,285 (51,811)
British Pound Sell 4/18/12 3,111,368 3,102,427 (8,941)
Canadian Dollar Buy 4/18/12 810,812 820,196 (9,384)
Canadian Dollar Sell 4/18/12 810,812 809,996 (816)
Euro Buy 4/18/12 2,631,157 2,629,935 1,222
Euro Sell 4/18/12 2,631,157 2,603,155 (28,002)
Japanese Yen Sell 4/18/12 2,825,719 2,881,986 56,267
Norwegian Krone Sell 4/18/12 2,220,184 2,250,654 30,470
Swedish Krona Buy 4/18/12 4,732,975 4,684,042 48,933
Swiss Franc Buy 4/18/12 8,170,406 8,141,181 29,225
Deutsche Bank AG
Australian Dollar Buy 4/18/12 948,572 984,933 (36,361)
Australian Dollar Sell 4/18/12 948,572 967,660 19,088
British Pound Sell 4/18/12 2,264,994 2,257,763 (7,231)
Euro Sell 4/18/12 7,404,505 7,401,149 (3,356)
Swedish Krona Buy 4/18/12 2,810,612 2,781,151 29,461
Swiss Franc Buy 4/18/12 7,764,778 7,738,285 26,493
Goldman Sachs International
Australian Dollar Buy 4/18/12 3,857,989 4,012,289 (154,300)
British Pound Sell 4/18/12 3,052,192 3,042,467 (9,725)
Euro Buy 4/18/12 2,729,057 2,728,045 1,012
Euro Sell 4/18/12 2,729,057 2,699,993 (29,064)
Japanese Yen Buy 4/18/12 288,666 294,421 (5,755)
Japanese Yen Sell 4/18/12 288,666 286,718 (1,948)
Norwegian Krone Buy 4/18/12 1,235,425 1,252,246 (16,821)
Norwegian Krone Sell 4/18/12 1,235,425 1,224,135 (11,290)
Swedish Krona Buy 4/18/12 1,832,089 1,813,264 18,825
HSBC Bank USA, National Association
Australian Dollar Buy 4/18/12 2,852,335 2,960,483 (108,148)
British Pound Sell 4/18/12 266,291 265,497 (794)
Euro Sell 4/18/12 7,804,641 7,794,842 (9,799)
Hong Kong Dollar Buy 4/18/12 8,451,792 8,452,092 (300)
Norwegian Krone Buy 4/18/12 396,031 392,398 3,633
Norwegian Krone Sell 4/18/12 396,031 401,687 5,656
Swiss Franc Buy 4/18/12 7,939,394 7,913,528 25,866
JPMorgan Chase Bank, N.A.
Australian Dollar Buy 4/18/12 492,124 502,041 (9,917)
Australian Dollar Sell 4/18/12 492,124 511,800 19,676
British Pound Sell 4/18/12 3,757,024 3,745,053 (11,971)
Euro Sell 4/18/12 2,024,685 2,033,099 8,414
Hong Kong Dollar Buy 4/18/12 5,657,202 5,660,598 (3,396)
Japanese Yen Sell 4/18/12 5,630,094 5,627,241 (2,853)
Norwegian Krone Buy 4/18/12 9,294,003 9,417,363 (123,360)
Singapore Dollar Buy 4/18/12 12,205,468 12,259,449 (53,981)
Swedish Krona Buy 4/18/12 3,322,449 3,286,248 36,201
Swiss Franc Buy 4/18/12 6,458,257 6,435,831 22,426
Royal Bank of Scotland PLC (The)
Australian Dollar Buy 4/18/12 185,619 264,471 (78,852)
British Pound Sell 4/18/12 5,258,490 5,305,084 46,594
Canadian Dollar Buy 4/18/12 2,653,932 2,691,644 (37,712)
Euro Sell 4/18/12 4,677,316 4,677,440 124
Japanese Yen Buy 4/18/12 94,823 96,778 (1,955)
Japanese Yen Sell 4/18/12 94,823 94,186 (637)
Swedish Krona Buy 4/18/12 1,279,239 1,265,187 14,052
Swiss Franc Buy 4/18/12 8,836,076 8,809,040 27,036
State Street Bank and Trust Co.
Australian Dollar Buy 4/18/12 3,298,856 3,430,315 (131,459)
Canadian Dollar Buy 4/18/12 1,780,079 1,778,394 1,685
Canadian Dollar Sell 4/18/12 1,780,079 1,801,428 21,349
Euro Sell 4/18/12 8,267,464 8,263,857 (3,607)
Israeli Shekel Sell 4/18/12 2,340,734 2,276,321 (64,413)
Norwegian Krone Buy 4/18/12 362,826 356,660 6,166
Norwegian Krone Sell 4/18/12 362,827 368,074 5,247
Swedish Krona Buy 4/18/12 182,179 180,403 1,776
UBS AG
Australian Dollar Buy 4/18/12 1,162,733 1,186,186 (23,453)
Australian Dollar Sell 4/18/12 1,162,733 1,208,820 46,087
British Pound Sell 4/18/12 3,975,494 3,962,405 (13,089)
Euro Sell 4/18/12 5,306,729 5,303,886 (2,843)
Norwegian Krone Buy 4/18/12 357,333 362,353 (5,020)
Norwegian Krone Sell 4/18/12 357,333 351,171 (6,162)
Swedish Krona Buy 4/18/12 4,035,363 3,994,258 41,105
Swiss Franc Buy 4/18/12 7,977,065 7,950,199 26,866
Westpac Banking Corp.
Australian Dollar Buy 4/18/12 545,380 578,523 (33,143)
British Pound Sell 4/18/12 2,783,981 2,774,972 (9,009)
Canadian Dollar Sell 4/18/12 3,883,381 3,928,262 44,881
Euro Sell 4/18/12 3,033,693 3,032,341 (1,352)
Japanese Yen Buy 4/18/12 233,794 232,224 1,570
Japanese Yen Sell 4/18/12 233,794 238,488 4,694
Total $(287,052)












Key to holding's abbreviations
ADR American Depository Receipts: represents ownership of foreign securities on deposit with a custodian bank
GDR Global Depository Receipts: represents ownership of foreign securities on deposit with a custodian bank
OAO Open 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, 2011 through March 31, 2012 (the reporting period). Within the following notes to the portfolio, references to “ASC 820” represent Accounting Standards Codification ASC 820 Fair Value Measurements and Disclosures and references to “Putnam Management” represent Putnam Investment Management, LLC, the fund's manager, an indirect wholly-owned subsidiary of Putnam Investments, LLC.
(a) Percentages indicated are based on net assets of $1,093,087,654.
(b) The aggregate identified cost on a tax basis is $1,006,053,062, resulting in gross unrealized appreciation and depreciation of $155,277,918 and $65,540,807, respectively, or net unrealized appreciation of $89,737,111.
(NON) Non-income-producing security.
(SEGSF) This security, in part or in entirety, was pledged and segregated with the custodian for collateral on certain derivative contracts at the close of the reporting period.
(d) The fund may lend securities, through its agent, to qualified borrowers in order to earn additional income. The loans are collateralized by cash in an amount at least equal to the market value of the securities loaned. The market value of securities loaned is determined daily and any additional required collateral is allocated to the fund on the next business day. The risk of borrower default will be borne by the fund’s agent; the fund will bear the risk of loss with respect to the investment of the cash collateral. At the close of the reporting period, the value of securities loaned amounted to $3,734,414.
The fund received cash collateral of $3,976,075, 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.
(e) The fund invested in Putnam Money Market Liquidity Fund, an open-end management investment company managed by Putnam Management. Investments in Putnam Money Market Liquidity Fund are valued at its closing net asset value each business day. Income distributions earned by the fund are recorded as interest income and totaled $1,464 for the reporting period. During the reporting period, cost of purchases and proceeds of sales of investments in Putnam Money Market Liquidity Fund aggregated $213,356,280 and $216,705,239, respectively. Management fees charged to Putnam Money Market Liquidity Fund have been waived by Putnam Management. The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period.
(i) Security purchased with cash or security received, that was pledged to the fund for collateral on certain derivative contracts.
(S) Security on loan, in part or in entirety, at the close of the reporting period.
At the close of the reporting period, the fund maintained liquid assets totaling $881,831 to cover certain derivatives contracts.
Debt obligations are considered secured unless otherwise indicated.
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 21.1%
Consumer discretionary 17.9
Industrials 11.1
Energy 10.6
Security valuation: Investments for which market quotations are readily available are valued at the last reported sales price on their principal exchange, or official closing price for certain markets, and are classified as Level 1 securities. If no sales are reported — as in the case of some securities traded over-the-counter — a security is valued at its last reported bid price and is generally categorized as a Level 2 security.
Investments in other open-end investment companies (excluding exchange traded funds), which are classified as Level 1 securities, are based on their net asset value. The net asset value of an investment company equals the total value of its assets less its liabilities and divided by the number of its outstanding shares. Shares are only valued as of the close of regular trading on the New York Stock Exchange each day that the exchange is open.
Market quotations are not considered to be readily available for certain debt obligations and other investments; such investments are valued on the basis of valuations furnished by an independent pricing service approved by the Trustees or dealers selected by Putnam Management. Such services or dealers determine valuations for normal institutional-size trading units of such securities using methods based on market transactions for comparable securities and various relationships, generally recognized by institutional traders, between securities (which considers such factors as security prices, yields, maturities and ratings). These securities will generally be categorized as Level 2.
Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore the closing prices for securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the close of the New York Stock Exchange. Accordingly, on certain days, the fund will fair value foreign equity securities taking into account multiple factors including movements in the U.S. securities markets, currency valuations and comparisons to the valuation of American Depository Receipts, exchange-traded funds and futures contracts. These securities, which will generally represent a transfer from a Level 1 to a Level 2 security, will be classified as Level 2. 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. Certain investments, including certain restricted and illiquid securities and derivatives, are also valued at fair value following procedures approved by the Trustees. These valuations consider such factors as significant market or specific security events such as interest rate or credit quality changes, various relationships with other securities, discount rates, U.S. Treasury, U.S. swap and credit yields, index levels, convexity exposures and recovery rates. These securities are classified as Level 2 or as Level 3 depending on the priority of the significant inputs.
Such valuations and procedures are reviewed periodically by the Trustees. The fair value of securities is generally determined as the amount that the fund could reasonably expect to realize from an orderly disposition of such securities over a reasonable period of time. By its nature, a fair value price is a good faith estimate of the value of a security in a current sale and does not reflect an actual market price, which may be different by a material amount.
Forward currency contracts: The fund buys and sells forward currency contracts, which are agreements between two parties to buy and sell currencies at a set price on a future date. These contracts were used to hedge foreign exchange risk.
The U.S. dollar value of forward currency contracts is determined using current forward currency exchange rates supplied by a quotation service. The market value of the contract will fluctuate with changes in currency exchange rates. The contract is marked to market daily and the change in market value is recorded as an unrealized gain or loss. The fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed when the contract matures or by delivery of the currency. The fund could be exposed to risk if the value of the currency changes unfavorably, if the counterparties to the contracts are unable to meet the terms of their contracts or if the fund is unable to enter into a closing position.
The fund had an average contract amount of approximately $443,000,000 on forward currency contracts for the reporting period.
Master agreements: The fund is a party to ISDA (International Swaps and Derivatives Association, Inc.) Master Agreements (Master Agreements) with certain counterparties that govern over the counter derivative and foreign exchange contracts entered into from time to time. The Master Agreements may contain provisions regarding, among other things, the parties’ general obligations, representations, agreements, collateral requirements, events of default and early termination. With respect to certain counterparties, in accordance with the terms of the Master Agreements, collateral posted to the fund is held in a segregated account by the fund’s custodian and with respect to those amounts which can be sold or repledged, are presented in the fund’s portfolio.
Collateral 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 $611,019 on derivative contracts subject to the Master Agreements. Collateral posted by the fund totaled $454,321.












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:
    Australia $29,685,503 $— $—
    Belgium 15,765,559 — —
    Brazil 22,508,406 — —
    Canada 20,561,280 — —
    China 50,248,375 — —
    France 101,509,417 — —
    Germany 132,876,176 — —
    Hong Kong 15,054,605 — —
    India 4,084,378 — —
    Ireland 39,109,032 — —
    Isreal 10,093,440 — —
    Italy 21,689,552 — —
    Japan 213,387,064 — —
    Malaysia 6,023,958 — —
    Netherlands 11,530,390 — —
    Norway 10,027,915 — —
    Russia 19,548,644 — —
    South Korea 17,014,035 — —
    Spain 7,180,596 — —
    Taiwan 12,918,565 — —
    Turkey 6,430,367 — —
    United Kingdom 264,992,201 — —
    United States 57,049,307 — —
Total common stocks 1,089,288,765 — —
U.S. Treasury Obligations $— $110,802 $—
Short-term investments 1,266,314 5,124,292 —
Totals by level $1,090,555,079 $5,235,094 $—



Valuation inputs
Other financial instruments: Level 1 Level 2 Level 3


Forward currency contracts $— $(287,052) $—
Totals by level $— $(287,052) $—


At the start and/or close of the reporting period, Level 3 investments in securities were not considered a significant portion of the fund's portfolio.
Market Values of Derivative Instruments as of the close of the reporting period
Asset derivatives Liability derivatives
Derivatives not accounted for as hedging instruments under ASC 815 Market value Market value
Foreign exchange contracts $1,135,532 $1,422,584
Total $1,135,532 $1,422,584


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 International Equity Fund
By (Signature and Title):
/s/ Janet C. Smith
Janet C. Smith
Principal Accounting Officer
Date: May 29, 2012

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: May 29, 2012

By (Signature and Title):
/s/ Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer
Date: May 29, 2012

EX-99.CERT 2 b_841certifications.htm CERTIFICATION b_841certifications.htm

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: May 25, 2012
Jonathan S. Horwitz
Principal Executive Officer













Certifications

I, Steven D. Krichmar, 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/ Steven D. Krichmar
_______________________________

Date: May 25, 2012
Steven D. Krichmar
Principal Financial Officer














Attachment A

NQ

Period (s) ended March 31, 2012
               Putnam Europe Equity Fund
               Putnam International Equity Fund
               Putnam Multi-Cap Growth Fund
               Putnam Small Cap Growth Fund
               Putnam International Value Fund

               Putnam VT Absolute 500 Fund
               Putnam VT American Government Income Fund
               Putnam VT Capital Opportunities Fund
               Putnam VT Diversified Income Fund
               Putnam VT Equity Income Fund
               Putnam VT George Putnam Balanced Fund
               Putnam VT Global Asset Allocation Fund
               Putnam VT Global Equity Fund
               Putnam VT Global Health Care Fund
               Putnam VT Global Utilities Fund
               Putnam VT Growth and Income Fund
               Putnam VT Growth Opportunities Fund
               Putnam VT High Yield Fund
               Putnam VT Income Fund
               Putnam VT International Equity Fund
               Putnam VT International Value Fund
               Putnam VT International Growth Fund
               Putnam VT Investors Fund
               Putnam VT Multi-Cap Value Fund
               Putnam VT Money Market Fund
               Putnam VT Multi-Cap Growth Fund
               Putnam VT Research Fund
               Putnam VT Small Cap Value Fund
               Putnam VT Voyager Fund