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, 2013 |
Date of reporting period: | March 31, 2013 |
Item 1. Schedule of Investments: |
Putnam International Equity Fund | ||||||
The fund's portfolio | ||||||
3/31/13 (Unaudited) | ||||||
COMMON STOCKS (98.5%)(a) | ||||||
Shares | Value | |||||
Australia (2.1%) | ||||||
Origin Energy, Ltd. | 659,283 | $9,145,916 | ||||
Telstra Corp., Ltd. | 2,410,040 | 11,329,965 | ||||
20,475,881 | ||||||
Belgium (0.9%) | ||||||
Solvay SA | 65,893 | 8,923,727 | ||||
8,923,727 | ||||||
Canada (2.8%) | ||||||
Agrium, Inc. | 81,160 | 7,914,268 | ||||
Intact Financial Corp. | 118,023 | 7,232,300 | ||||
Suncor Energy, Inc. | 404,000 | 12,105,882 | ||||
27,252,450 | ||||||
China (1.2%) | ||||||
Brilliance China Automotive Holdings, Inc.(NON) | 4,692,000 | 5,532,921 | ||||
China Communications Construction Co., Ltd. | 7,020,000 | 6,548,532 | ||||
12,081,453 | ||||||
Denmark (0.8%) | ||||||
TDC A/S | 1,058,958 | 8,136,447 | ||||
8,136,447 | ||||||
France (9.8%) | ||||||
BNP Paribas SA | 182,711 | 9,377,698 | ||||
European Aeronautic Defence and Space Co. NV | 149,901 | 7,628,383 | ||||
Pernod-Ricard SA | 97,653 | 12,168,415 | ||||
Safran SA | 231,211 | 10,312,473 | ||||
Sanofi | 270,440 | 27,480,034 | ||||
Valeo SA | 290,899 | 15,741,514 | ||||
Vivendi | 610,425 | 12,609,565 | ||||
95,318,082 | ||||||
Germany (8.7%) | ||||||
Allianz SE | 98,959 | 13,439,829 | ||||
Daimler AG (Registered Shares) | 172,859 | 9,404,940 | ||||
Deutsche Lufthansa AG | 112,742 | 2,201,738 | ||||
Deutsche Post AG | 711,219 | 16,387,388 | ||||
HeidelbergCement AG | 67,683 | 4,863,738 | ||||
Henkel AG & Co. KGaA (Preference) | 96,448 | 9,283,523 | ||||
Kabel Deutschland Holding AG | 84,939 | 7,837,119 | ||||
Merck KGaA | 68,683 | 10,362,468 | ||||
SAP AG | 61,261 | 4,907,966 | ||||
ThyssenKrupp AG(NON) | 318,124 | 6,469,549 | ||||
85,158,258 | ||||||
Hong Kong (0.7%) | ||||||
Sun Hung Kai Properties, Ltd. | 523,988 | 7,072,781 | ||||
7,072,781 | ||||||
Indonesia (0.8%) | ||||||
Matahari Department Store Tbk PT(NON) | 1,690,500 | 1,913,609 | ||||
PT Indocement Tunggal Prakarsa Tbk | 2,273,500 | 5,457,162 | ||||
7,370,771 | ||||||
Ireland (1.1%) | ||||||
Kerry Group PLC Class A | 186,580 | 11,117,711 | ||||
11,117,711 | ||||||
Italy (3.7%) | ||||||
ENI SpA | 567,096 | 12,743,126 | ||||
Fiat SpA(NON) | 1,228,542 | 6,535,451 | ||||
Luxottica Group SpA | 205,603 | 10,307,533 | ||||
UniCredit SpA(NON) | 1,616,093 | 6,898,395 | ||||
36,484,505 | ||||||
Japan (20.5%) | ||||||
Astellas Pharma, Inc. | 226,900 | 12,196,463 | ||||
Bridgestone Corp. | 204,500 | 6,886,546 | ||||
Japan Airlines Co., Ltd.(NON) | 143,700 | 6,670,941 | ||||
Japan Tobacco, Inc. | 670,300 | 21,361,874 | ||||
Mitsubishi Corp. | 755,900 | 13,996,215 | ||||
Mitsubishi Estate Co., Ltd. | 508,000 | 14,009,327 | ||||
Nintendo Co., Ltd. | 59,500 | 6,390,237 | ||||
Nissan Motor Co., Ltd. | 1,604,800 | 15,428,310 | ||||
Nitto Denko Corp. | 130,500 | 7,721,729 | ||||
NSK, Ltd. | 1,015,000 | 7,709,407 | ||||
Olympus Corp.(NON) | 248,800 | 5,843,701 | ||||
ORIX Corp. | 1,626,400 | 20,577,282 | ||||
Softbank Corp. | 262,700 | 12,111,521 | ||||
Sumitomo Mitsui Financial Group, Inc. | 248,100 | 9,949,302 | ||||
Tokyo Gas Co., Ltd. | 2,977,000 | 16,255,144 | ||||
Toshiba Corp. | 1,271,000 | 6,372,890 | ||||
Toyota Motor Corp. | 328,500 | 16,959,792 | ||||
200,440,681 | ||||||
Mexico (0.8%) | ||||||
Grupo Financiero Banorte SAB de CV | 931,500 | 7,466,963 | ||||
7,466,963 | ||||||
Netherlands (2.9%) | ||||||
Gemalto NV | 107,685 | 9,393,357 | ||||
ING Groep NV GDR(NON) | 1,496,436 | 10,621,116 | ||||
Ziggo NV | 244,389 | 8,594,569 | ||||
28,609,042 | ||||||
Russia (2.7%) | ||||||
Magnit OJSC | 45,615 | 8,715,704 | ||||
Sberbank of Russia ADR | 750,923 | 9,626,833 | ||||
Yandex NV Class A(NON) | 341,300 | 7,890,856 | ||||
26,233,393 | ||||||
Singapore (1.1%) | ||||||
Ezion Holdings, Ltd. | 6,311,000 | 11,072,278 | ||||
11,072,278 | ||||||
South Korea (2.3%) | ||||||
Samsung Electronics Co., Ltd. | 10,176 | 13,966,162 | ||||
SK Hynix, Inc.(NON) | 314,690 | 8,131,707 | ||||
22,097,869 | ||||||
Spain (1.4%) | ||||||
Grifols SA(NON) | 61,256 | 2,271,221 | ||||
Grifols SA ADR(NON) | 220,407 | 6,394,007 | ||||
Jazztel PLC(NON) | 665,711 | 5,068,852 | ||||
13,734,080 | ||||||
Switzerland (3.0%) | ||||||
Cie Financiere Richemont SA | 228,311 | 17,917,591 | ||||
UBS AG | 713,576 | 10,937,039 | ||||
28,854,630 | ||||||
Taiwan (1.5%) | ||||||
Asustek Computer, Inc. | 499,000 | 5,965,806 | ||||
Pegatron Corp.(NON) | 5,943,000 | 9,182,062 | ||||
15,147,868 | ||||||
Turkey (0.5%) | ||||||
Turk Hava Yollari(NON) | 1,212,998 | 5,014,771 | ||||
5,014,771 | ||||||
United Kingdom (21.4%) | ||||||
Associated British Foods PLC | 570,490 | 16,478,455 | ||||
Barclays PLC | 4,232,021 | 18,721,944 | ||||
BG Group PLC | 716,891 | 12,297,969 | ||||
BHP Billiton PLC | 527,268 | 15,342,161 | ||||
Centrica PLC | 2,377,531 | 13,283,305 | ||||
Compass Group PLC | 1,131,614 | 14,451,814 | ||||
GlaxoSmithKline PLC | 637,785 | 14,909,330 | ||||
Kingfisher PLC | 1,659,343 | 7,256,268 | ||||
Prudential PLC | 1,250,555 | 20,236,655 | ||||
Royal Dutch Shell PLC Class A | 712,887 | 23,061,242 | ||||
SSE PLC | 380,948 | 8,589,857 | ||||
Telecity Group PLC | 584,734 | 8,027,362 | ||||
Thomas Cook Group PLC(NON)(S) | 3,157,570 | 5,392,692 | ||||
TUI Travel PLC | 1,081,477 | 5,350,422 | ||||
WPP PLC | 858,798 | 13,688,405 | ||||
Xstrata PLC | 712,167 | 11,556,849 | ||||
208,644,730 | ||||||
United States (7.8%) | ||||||
Apple, Inc. | 20,392 | 9,026,111 | ||||
Covidien PLC | 188,300 | 12,774,272 | ||||
KKR & Co. LP | 474,500 | 9,167,340 | ||||
LyondellBasell Industries NV Class A | 155,488 | 9,840,836 | ||||
Monsanto Co. | 89,465 | 9,450,188 | ||||
Schlumberger, Ltd. | 104,200 | 7,803,538 | ||||
Tyco International, Ltd. | 329,318 | 10,538,176 | ||||
Visa, Inc. Class A | 45,600 | 7,744,699 | ||||
76,345,160 | ||||||
Total common stocks (cost $861,918,002) | $963,053,531 | |||||
U.S. TREASURY OBLIGATIONS (—%)(a) | ||||||
Principal amount | Value | |||||
U.S. Treasury Notes | ||||||
0.250%, April 30, 2014(i) | $143,000 | $143,255 | ||||
0.250%, May 31, 2014(i) | 41,000 | 41,062 | ||||
Total U.S. treasury Obligations (cost $184,317) | $184,317 | |||||
SHORT-TERM INVESTMENTS (1.5%)(a) | ||||||
Principal amount/shares | Value | |||||
Putnam Cash Collateral Pool, LLC 0.19%(d) | 4,023,380 | $4,023,380 | ||||
Putnam Short Term Investment Fund 0.08%(AFF) | 6,433,890 | 6,433,890 | ||||
SSgA Prime Money Market Fund 0.02%(P) | 1,020,000 | 1,020,000 | ||||
U.S. Treasury Bills with effective yields ranging from 0.13% to 0.14%, January 9, 2014(SEGSF) | $1,711,000 | 1,709,184 | ||||
U.S. Treasury Bills with an effective yield of 0.14%, December 12, 2013(SEGSF) | 324,000 | 323,675 | ||||
U.S. Treasury Bills with effective yields ranging from 0.15% to 0.18%, October 17, 2013 | 281,000 | 280,747 | ||||
U.S. Treasury Bills with an effective yield of 0.16%, July 25, 2013 | 265,000 | 264,867 | ||||
U.S. Treasury Bills with effective yields ranging from 0.15% to 0.19%, May 2, 2013 | 130,000 | 129,982 | ||||
Total short-term investments (cost $14,185,725) | $14,185,725 | |||||
TOTAL INVESTMENTS | ||||||
Total investments (cost $876,288,044)(b) | $977,423,573 | |||||
FORWARD CURRENCY CONTRACTS at 3/31/13 (aggregate face value $255,919,238) (Unaudited) | |||||||
Unrealized | |||||||
Contract | Delivery | Aggregate | appreciation/ | ||||
Counterparty | Currency | type | date | Value | face value | (depreciation) | |
Bank of America N.A. | |||||||
Australian Dollar | Buy | 4/17/13 | $2,984,041 | $2,972,474 | $11,567 | ||
British Pound | Buy | 6/19/13 | 4,406,466 | 4,348,319 | 58,147 | ||
Swedish Krona | Buy | 6/19/13 | 2,703,381 | 2,723,307 | (19,926) | ||
Barclays Bank PLC | |||||||
Canadian Dollar | Sell | 4/17/13 | 216,986 | 110,462 | (106,524) | ||
Euro | Sell | 6/19/13 | 5,641,985 | 5,721,075 | 79,090 | ||
Japanese Yen | Sell | 5/15/13 | 1,304,624 | 1,328,178 | 23,554 | ||
Norwegian Krone | Sell | 6/19/13 | 4,897,849 | 4,952,594 | 54,745 | ||
Singapore Dollar | Buy | 5/15/13 | 3,461,012 | 3,486,843 | (25,831) | ||
Swedish Krona | Buy | 6/19/13 | 3,520,199 | 3,550,651 | (30,452) | ||
Swiss Franc | Buy | 6/19/13 | 9,944,199 | 9,995,527 | (51,328) | ||
Citibank, N.A. | |||||||
Australian Dollar | Buy | 4/17/13 | 3,200,270 | 3,187,926 | 12,344 | ||
Danish Krone | Buy | 6/19/13 | 4,816,342 | 4,888,850 | (72,508) | ||
Euro | Buy | 6/19/13 | 5,392,399 | 5,244,241 | 148,158 | ||
Singapore Dollar | Buy | 5/15/13 | 3,402,151 | 3,408,437 | (6,286) | ||
Credit Suisse International | |||||||
Australian Dollar | Buy | 4/17/13 | 11,409,270 | 11,245,520 | 163,750 | ||
British Pound | Buy | 6/19/13 | 237,395 | 234,575 | 2,820 | ||
Canadian Dollar | Buy | 4/17/13 | 4,152,543 | 4,219,019 | (66,476) | ||
Canadian Dollar | Sell | 4/17/13 | 4,152,543 | 4,218,534 | 65,991 | ||
Japanese Yen | Sell | 5/15/13 | 3,645,506 | 3,653,855 | 8,349 | ||
Norwegian Krone | Buy | 6/19/13 | 5,678,106 | 5,740,106 | (62,000) | ||
Swedish Krona | Buy | 6/19/13 | 971,357 | 979,463 | (8,106) | ||
Swiss Franc | Buy | 6/19/13 | 9,945,148 | 9,997,085 | (51,937) | ||
Deutsche Bank AG | |||||||
Euro | Sell | 6/19/13 | 18,356,395 | 18,615,007 | 258,612 | ||
Swedish Krona | Buy | 6/19/13 | 2,850,535 | 2,873,720 | (23,185) | ||
HSBC Bank USA, National Association | |||||||
Australian Dollar | Buy | 4/17/13 | 6,655,355 | 6,630,580 | 24,775 | ||
Euro | Sell | 6/19/13 | 10,489,038 | 10,631,905 | 142,867 | ||
JPMorgan Chase Bank N.A. | |||||||
Euro | Sell | 6/19/13 | 11,480,971 | 11,641,959 | 160,988 | ||
Japanese Yen | Sell | 5/15/13 | 7,385,320 | 7,445,470 | 60,150 | ||
Norwegian Krone | Buy | 6/19/13 | 9,039,714 | 9,138,000 | (98,286) | ||
Swedish Krona | Buy | 6/19/13 | 5,613,820 | 5,659,972 | (46,152) | ||
Swiss Franc | Buy | 6/19/13 | 8,940,152 | 8,986,222 | (46,070) | ||
State Street Bank and Trust Co. | |||||||
Australian Dollar | Buy | 4/17/13 | 6,503,610 | 6,478,399 | 25,211 | ||
Euro | Sell | 6/19/13 | 10,919,722 | 11,069,477 | 149,755 | ||
Israeli Shekel | Buy | 4/17/13 | 6,258,419 | 6,146,338 | 112,081 | ||
Swedish Krona | Buy | 6/19/13 | 3,048,523 | 3,073,034 | (24,511) | ||
UBS AG | |||||||
British Pound | Sell | 6/19/13 | 175,123 | 174,906 | (217) | ||
Canadian Dollar | Sell | 4/17/13 | 6,874,457 | 6,796,695 | (77,762) | ||
Euro | Buy | 6/19/13 | 9,038,975 | 9,155,577 | (116,602) | ||
Swedish Krona | Buy | 6/19/13 | 4,092,683 | 4,126,379 | (33,696) | ||
Swiss Franc | Buy | 6/19/13 | 7,591,721 | 7,629,646 | (37,925) | ||
WestPac Banking Corp. | |||||||
British Pound | Buy | 6/19/13 | 119,685 | 145,374 | (25,689) | ||
Canadian Dollar | Buy | 4/17/13 | 3,812,943 | 3,762,813 | 50,130 | ||
Canadian Dollar | Sell | 4/17/13 | 3,812,943 | 3,874,487 | 61,544 | ||
Euro | Sell | 6/19/13 | 15,434,721 | 15,656,237 | 221,516 | ||
| |||||||
Total | $864,675 |
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 | ||
OJSC | 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, 2012 through March 31, 2013 (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, references to “Putnam Management” represent Putnam Investment Management, LLC, the fund's manager, an indirect wholly-owned subsidiary of Putnam Investments, LLC and references to “OTC”, if any, represent over-the-counter. | |||||||
(a) | Percentages indicated are based on net assets of $977,486,021. | ||||||
(b) | The aggregate identified cost on a tax basis is $877,195,905, resulting in gross unrealized appreciation and depreciation of $135,268,593 and $35,040,925, respectively, or net unrealized appreciation of $100,227,668. | ||||||
(NON) | Non-income-producing security. | ||||||
(AFF) | Affiliated company. The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period. Transactions during the period with Putnam Money Market Liquidity Fund and Putnam Short Term Investment Fund, which are under common ownership and control, were as follows: | ||||||
Name of affiliate | Market value at the beginning of the reporting period | Purchase cost | Sale proceeds | Investment income | Market value at the end of the reporting period | ||
Putnam Money Market Liquidity Fund * | $272,325 | $143,867,458 | $144,139,783 | $5,149 | $— | ||
Putnam Short Term Investment Fund * | — | 46,957,954 | 40,524,064 | 555 | 6,433,890 | ||
Totals | $272,325 | $190,825,412 | $184,663,847 | $5,704 | $6,433,890 | ||
* Management fees charged to Putnam Money Market Liquidity Fund and Putnam Short Term Investment Fund have been waived by Putnam Management. | |||||||
(SEGSF) | This security, in part or in entirety, was pledged and segregated with the custodian for collateral on certain derivative contracts at the close of the reporting period. | ||||||
(d) | Affiliated company. The fund may lend securities, through its agent, to qualified borrowers in order to earn additional income. The loans are collateralized by cash in an amount at least equal to the market value of the securities loaned. The market value of securities loaned is determined daily and any additional required collateral is allocated to the fund on the next business day. The risk of borrower default will be borne by the fund’s agent; the fund will bear the risk of loss with respect to the investment of the cash collateral. At the close of the reporting period, the value of securities loaned amounted to $3,711,793. | ||||||
The fund received cash collateral of $4,023,380, which is invested in Putnam Cash Collateral Pool, LLC, a limited liability company managed by an affiliate of Putnam Management. Investments in Putnam Cash Collateral Pool, LLC are valued at its closing net asset value each business day. There are no management fees charged to Putnam Cash Collateral Pool, LLC. The rate quoted in the security description is the annualized 7-day yield at the close of the reporting period. | |||||||
(i) | Security was pledged, or purchased with cash that was pledged, to the fund for collateral on certain derivative contracts. | ||||||
(P) | Security was pledged, or purchased with cash that was pledged, to the fund for collateral on certain derivatives contracts. The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period. | ||||||
(S) | Security on loan, in part or in entirety, at the close of the reporting period. | ||||||
At the close of the reporting period, the fund maintained liquid assets totaling $3,634,428 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 | 17.9% | ||||||
Consumer discretionary | 16.4 | ||||||
Security valuation: Investments for which market quotations are readily available are valued at the last reported sales price on their principal exchange, or official closing price for certain markets, and are classified as Level 1 securities under ASC 820. If no sales are reported, as in the case of some securities that are traded OTC, a security is valued at its last reported bid price and is generally categorized as a Level 2 security. | |||||||
Investments in open-end investment companies (excluding exchange traded funds), if any, which can be classified as Level 1 or Level 2 securities, are based on their net asset value. The net asset value of such investment companies equals the total value of their assets less their liabilities and divided by the number of their outstanding shares. | |||||||
Market quotations are not considered to be readily available for certain debt obligations and other investments; such investments are valued on the basis of valuations furnished by an independent pricing service approved by the Trustees or dealers selected by Putnam Management. Such services or dealers determine valuations for normal institutional-size trading units of such securities using methods based on market transactions for comparable securities and various relationships, generally recognized by institutional traders, between securities (which consider such factors as security prices, yields, maturities and ratings). These securities will generally be categorized as Level 2. | |||||||
Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore the closing prices for securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the close of the New York Stock Exchange. Accordingly, on certain days, the fund will fair value foreign equity securities taking into account multiple factors including movements in the U.S. securities markets, currency valuations and comparisons to the valuation of American Depository Receipts, exchange-traded funds and futures contracts. These securities, which would generally be classified as Level 1 securities, will be transferred to Level 2 of the fair value hierarchy when they are valued at fair value. The number of days on which fair value prices will be used will depend on market activity and it is possible that fair value prices will be used by the fund to a significant extent. At the close of the reporting period, fair value pricing was used for certain foreign securities in the portfolio. Securities quoted in foreign currencies, if any, are translated into U.S. dollars at the current exchange rate. | |||||||
To the extent a pricing service or dealer is unable to value a security or provides a valuation that Putnam Management does not believe accurately reflects the security's fair value, the security will be valued at fair value by Putnam Management. Certain investments, including certain restricted and illiquid securities and derivatives, are also valued at fair value following procedures approved by the Trustees. These valuations consider such factors as significant market or specific security events such as interest rate or credit quality changes, various relationships with other securities, discount rates, U.S. Treasury, U.S. swap and credit yields, index levels, convexity exposures and recovery rates. These securities are classified as Level 2 or as Level 3 depending on the priority of the significant inputs. | |||||||
Such valuations and procedures are reviewed periodically by the Trustees. The fair value of securities is generally determined as the amount that the fund could reasonably expect to realize from an orderly disposition of such securities over a reasonable period of time. By its nature, a fair value price is a good faith estimate of the value of a security in a current sale and does not reflect an actual market price, which may be different by a material amount. | |||||||
Forward currency contracts: The fund buys and sells forward currency contracts, which are agreements between two parties to buy and sell currencies at a set price on a future date. These contracts were used to hedge foreign exchange risk. | |||||||
The U.S. dollar value of forward currency contracts is determined using current forward currency exchange rates supplied by a quotation service. The market value of the contract will fluctuate with changes in currency exchange rates. The contract is marked to market daily and the change in market value is recorded as an unrealized gain or loss. The fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed when the contract matures or by delivery of the currency. The fund could be exposed to risk if the value of the currency changes unfavorably, if the counterparties to the contracts are unable to meet the terms of their contracts or if the fund is unable to enter into a closing position. | |||||||
For the fund's average contract amount on forward currency contracts, see the appropriate table at the end of these footnotes. | |||||||
Master agreements: The fund is a party to ISDA (International Swaps and Derivatives Association, Inc.) Master Agreements (Master Agreements) with certain counterparties that govern OTC derivative and foreign exchange contracts entered into from time to time. The Master Agreements may contain provisions regarding, among other things, the parties’ general obligations, representations, agreements, collateral requirements, events of default and early termination. With respect to certain counterparties, in accordance with the terms of the Master Agreements, collateral posted to the fund is held in a segregated account by the fund’s custodian and with respect to those amounts which can be sold or repledged, are presented in the fund’s portfolio. Collateral posted to the fund which cannot be sold or repledged totaled $132,201 at the close of the reporting period. | |||||||
Collateral pledged by the fund is segregated by the fund’s custodian and identified in the fund’s portfolio. Collateral can be in the form of cash or debt securities issued by the U.S. Government or related agencies or other securities as agreed to by the fund and the applicable counterparty. Collateral requirements are determined based on the fund’s net position with each counterparty. | |||||||
Termination events applicable to the fund may occur upon a decline in the fund’s net assets below a specified threshold over a certain period of time. Termination events applicable to counterparties may occur upon a decline in the counterparty’s long-term and short-term credit ratings below a specified level. In each case, upon occurrence, the other party may elect to terminate early and cause settlement of all derivative and foreign exchange contracts outstanding, including the payment of any losses and costs resulting from such early termination, as reasonably determined by the terminating party. Any decision by one or more of the fund’s counterparties to elect early termination could impact the fund's future derivative activity. | |||||||
At the close of the reporting period, the fund had a net liability position of $322,948 on open derivative contracts subject to the Master Agreements. Collateral posted by the fund for these agreements totaled $219,807. |
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 | $— | $20,475,881 | $— | |
Belgium | 8,923,727 | — | — | |
Canada | 27,252,450 | — | — | |
China | — | 12,081,453 | — | |
Denmark | 8,136,447 | — | — | |
France | 95,318,082 | — | — | |
Germany | 85,158,258 | — | — | |
Hong Kong | — | 7,072,781 | — | |
Indonesia | 1,913,609 | 5,457,162 | — | |
Ireland | 11,117,711 | — | — | |
Italy | 36,484,505 | — | — | |
Japan | 23,332,682 | 177,107,999 | — | |
Mexico | 7,466,963 | — | — | |
Netherlands | 28,609,042 | — | — | |
Russia | 26,233,393 | — | — | |
Singapore | — | 11,072,278 | — | |
South Korea | — | 22,097,869 | — | |
Spain | 13,734,080 | — | — | |
Switzerland | 28,854,630 | — | — | |
Taiwan | — | 15,147,868 | — | |
Turkey | 5,014,771 | — | — | |
United Kingdom | 208,644,730 | — | — | |
United States | 76,345,160 | — | — | |
Total common stocks | 692,540,240 | 270,513,291 | — | |
U.S. Treasury Obligations | — | 184,317 | — | |
Short-term investments | 7,453,890 | 6,731,835 | — | |
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Totals by level | $699,994,130 | $277,429,443 | $— | |
Valuation inputs | ||||
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Other financial instruments: | Level 1 | Level 2 | Level 3 | |
Forward currency contracts | $— | $864,675 | $— | |
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Totals by level | $— | $864,675 | $— | |
Market Values of Derivative Instruments as of the close of the reporting period | ||||
Asset derivatives | Liability derivatives | |||
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Derivatives not accounted for as hedging instruments under ASC 815 | Market value | Market value | ||
Foreign exchange contracts | $1,896,144 | $1,031,469 | ||
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Total | $1,896,144 | $1,031,469 | ||
The average volume of activity for the reporting period for any derivative type that was held at the close of the period is listed below and was as follows: | ||||
Forward currency contracts (contract amount) | $428,100,000 | |||
For additional information regarding the fund please see the fund's most recent annual or semiannual shareholder report filed on the Securities and Exchange Commission's Web site, www.sec.gov, or visit Putnam's Individual Investor Web site at www.putnaminvestments.com |
Item 2. Controls and Procedures: |
(a) The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the effectiveness of the design and operation of the registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the design and operation of such procedures are generally effective to provide reasonable assurance that information required to be disclosed by the registrant in this report is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms. |
(b) Changes in internal control over financial reporting: Not applicable |
Item 3. Exhibits: |
Separate certifications for the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are filed herewith. |
SIGNATURES |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. |
Putnam International Equity Fund |
By (Signature and Title): |
/s/ Janet C. Smith Janet C. Smith Principal Accounting Officer Date: May 24, 2013 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. |
By (Signature and Title): |
/s/ Jonathan S. Horwitz Jonathan S. Horwitz Principal Executive Officer Date: May 24, 2013 |
By (Signature and Title): |
/s/ Steven D. Krichmar Steven D. Krichmar Principal Financial Officer Date: May 24, 2013 |
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 23, 2013 | |
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 23, 2013 | |
Steven D. Krichmar | |
Principal Financial Officer | |
Attachment A | |
Period (s) ended March 31, 2013 | |
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 |