N-Q 1 a_internationalequity.htm PUTNAM INTERNATIONAL EQUITY FUND a_internationalequity.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:         Bryan Chegwidden, Esq.
Ropes & Gray LLP
1211 Avenue of the Americas
New York, New York 10036
Registrant's telephone number, including area code: (617) 292-1000
Date of fiscal year end: June 30, 2018
Date of reporting period: September 30, 2017



Item 1. Schedule of Investments:













Putnam International Equity Fund

The fund's portfolio
9/30/17 (Unaudited)
COMMON STOCKS (98.2%)(a)
Shares Value
Argentina (1.1%)
Banco Macro SA ADR(S) 93,948 $11,024,798
11,024,798
Australia (2.5%)
Challenger, Ltd. 1,609,090 15,779,590
Insurance Australia Group, Ltd. 1,733,889 8,706,082
24,485,672
Canada (3.0%)
Cenovus Energy, Inc. 1,115,400 11,183,053
Constellation Software, Inc. 13,400 7,310,692
Magna International, Inc. 208,800 11,143,251
29,636,996
China (2.5%)
Alibaba Group Holding, Ltd. ADR(NON)(S) 70,200 12,124,242
Tencent Holdings, Ltd. 286,700 12,394,656
24,518,898
Denmark (1.4%)
Danske Bank A/S 348,288 13,928,754
13,928,754
Finland (1.3%)
Nokia OYJ 2,107,112 12,606,387
12,606,387
France (11.8%)
Airbus SE 168,768 16,039,138
Eurazeo SA 104,701 9,358,921
Natixis SA 1,510,363 12,085,118
Sanofi 167,964 16,677,389
Societe Generale SA 263,125 15,404,767
Total SA 369,203 19,830,433
Valeo SA 206,094 15,292,114
Veolia Environnement SA 507,451 11,725,240
116,413,120
Germany (13.7%)
Adidas AG 58,327 13,194,485
BASF SE 136,133 14,487,044
Bayer AG 166,906 22,744,800
Delivery Hero Holding GmbH(NON) 158,551 6,277,615
Evonik Industries AG 365,815 13,065,825
FabFurnish GmbH (acquired various dates from 8/2/13 to 8/31/16, cost $20) (Private)(F)(RES)(NON) 30 27
Henkel AG & Co. KGaA (Preference) 81,019 11,026,348
KION Group AG 95,782 9,166,191
New Bigfoot Other Assets GmbH (acquired 8/2/13, cost $20) (Private)(F)(RES)(NON) 15 13
New Middle East Other Assets GmbH (acquired 8/2/13, cost $8) (Private)(F)(RES)(NON) 6 5
Rheinmetall AG 103,267 11,638,813
Siemens AG 156,086 21,989,790
Uniper SE 444,013 12,174,876
135,765,832
Hong Kong (2.2%)
Techtronic Industries Co., Ltd. 1,576,500 8,430,768
WH Group, Ltd. 12,111,000 12,895,541
21,326,309
Ireland (3.2%)
Bank of Ireland Group PLC(NON) 961,358 7,874,070
CRH PLC 337,141 12,860,525
Kerry Group PLC Class A 110,298 10,597,066
31,331,661
Italy (2.0%)
ENI SpA 769,401 12,730,975
Pirelli & C SpA(NON) 534,930 4,109,521
Telecom Italia SpA RSP 3,721,064 2,797,082
19,637,578
Japan (20.0%)
Chugai Pharmaceutical Co., Ltd. 269,100 11,176,222
Hoya Corp. 299,400 16,239,025
Japan Airlines Co., Ltd. 239,900 8,120,509
Komatsu, Ltd. 533,500 15,195,618
Kyudenko Corp. 230,200 8,921,233
LIXIL Group Corp. 525,300 13,951,436
Nintendo Co., Ltd. 32,900 12,194,051
NSK, Ltd. 1,130,700 15,270,531
ORIX Corp. 1,143,300 18,455,991
Rohm Co., Ltd. 158,100 13,586,946
SMC Corp. 23,100 8,152,228
SoftBank Corp. 146,700 11,857,779
Sony Corp. 443,800 16,518,915
Sumitomo Mitsui Financial Group, Inc. 414,700 15,952,529
TDK Corp. 174,100 11,885,321
197,478,334
Luxembourg (—%)
Global Fashion Holding SA (acquired 8/2/13, cost $1,009,308) (Private)(F)(RES)(NON) 23,826 254,956
254,956
Netherlands (8.7%)
Akzo Nobel NV 101,851 9,403,909
Altice NV Class A(NON) 431,504 8,641,861
Heineken NV 116,172 11,485,457
ING Groep NV GDR 1,238,349 22,832,240
Koninklijke Ahold Delhaize NV 718,939 13,442,480
Unilever NV ADR 346,596 20,498,483
86,304,430
Norway (1.0%)
Norsk Hydro ASA 1,386,490 10,079,449
10,079,449
South Korea (1.3%)
Samsung Electronics Co., Ltd. (Preference) 3,061 5,529,041
SK Hynix, Inc. 107,487 7,805,651
13,334,692
Spain (1.7%)
Aena SA 42,254 7,628,338
Grifols SA ADR 436,814 9,561,858
17,190,196
Sweden (1.1%)
Com Hem Holding AB 780,970 11,160,961
11,160,961
Switzerland (1.0%)
Partners Group Holding AG 14,603 9,907,751
9,907,751
United Kingdom (15.4%)
Associated British Foods PLC 303,096 12,968,320
AstraZeneca PLC 198,980 13,211,669
Barclays PLC 3,554,942 9,210,459
Berkeley Group Holdings PLC (The) 242,278 12,067,329
Compass Group PLC 546,913 11,601,223
Diageo PLC 386,632 12,708,665
Dixons Carphone PLC 3,430,346 8,889,943
Prudential PLC 869,941 20,825,595
Rio Tinto PLC 367,255 17,091,379
RPC Group PLC 777,158 10,314,980
Shire PLC 290,549 14,748,028
Virgin Money Holdings UK PLC 2,275,245 8,734,889
152,372,479
United States (3.3%)
Alphabet, Inc. Class C(NON) 8,411 8,067,074
Amazon.com, Inc.(NON) 8,000 7,690,800
Johnson Controls International PLC 186,100 7,497,969
KKR & Co. LP 480,100 9,760,433
33,016,276
Total common stocks (cost $828,336,605) $971,775,529

U.S. TREASURY OBLIGATIONS (—%)(a)
Principal amount Value
U.S. Treasury Notes
     2.125%, 8/31/20(i) $260,000 $264,220
     1.75%, 4/30/22(i) 173,000 173,201
Total U.S. treasury obligations (cost $437,421) $437,421

CONVERTIBLE PREFERRED STOCKS (—%)(a)
Shares Value
Global Fashion Group SA zero % cv. pfd. (acquired various dates from 7/11/16 to 9/14/17, cost $121,606) (Luxembourg) (Private)(F)(RES)(NON) 18,499 $201,916
Total convertible preferred stocks (cost $121,606) $201,916

SHORT-TERM INVESTMENTS (3.5%)(a)
Principal amount/shares Value
Putnam Cash Collateral Pool, LLC 1.25%(AFF) Shares 16,039,250 $16,039,250
Putnam Short Term Investment Fund 1.17%(AFF) Shares 14,656,248 14,656,248
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.92%(P) Shares 599,000 599,000
U.S. Treasury Bills 1.026%, 11/24/17 $62,000 $61,909
U.S. Treasury Bills 1.029%, 12/14/17(SEGSF) 595,000 593,845
U.S. Treasury Bills 1.040%, 1/18/18 72,000 71,782
U.S. Treasury Bills 1.041%, 12/7/17(SEGSF) 1,692,000 1,688,945
U.S. Treasury Bills 1.069%, 2/1/18 212,000 211,235
U.S. Treasury Bills 1.081%, 2/8/18(SEGSF) 779,000 775,985
U.S. Treasury Bills 1.082%, 2/15/18(SEGSF) 380,000 378,449
Total short-term investments (cost $35,076,442) $35,076,648

TOTAL INVESTMENTS
Total investments (cost $863,972,074) $1,007,491,514













FORWARD CURRENCY CONTRACTS at 9/30/17 (aggregate face value $319,688,379) (Unaudited)


Unrealized
Contract Delivery Aggregate appreciation/
Counterparty Currency type* date Value face value (depreciation)
Bank of America N.A.
Australian Dollar Buy 10/18/17 $3,801,605 $3,544,158 $257,447
British Pound Sell 12/20/17 5,974,209 5,796,254 (177,955)
Canadian Dollar Sell 10/18/17 102,837 99,026 (3,811)
Euro Sell 12/20/17 7,723,615 7,785,018 61,403
Hong Kong Dollar Buy 11/15/17 185,440 185,727 (287)
Japanese Yen Buy 11/15/17 61,724 63,034 (1,310)
Barclays Bank PLC
Hong Kong Dollar Sell 11/15/17 11,159,928 11,162,419 2,491
Swiss Franc Buy 12/20/17 13,560,739 13,657,027 (96,288)
Citibank, N.A.
Australian Dollar Buy 10/18/17 6,994,143 6,511,130 483,013
British Pound Sell 12/20/17 2,413,485 2,261,728 (151,757)
Canadian Dollar Sell 10/18/17 2,443,804 2,487,278 43,474
Danish Krone Buy 12/20/17 4,871,147 4,874,904 (3,757)
Euro Sell 12/20/17 2,903,152 2,948,216 45,064
Japanese Yen Buy 11/15/17 8,816,744 9,010,554 (193,810)
New Zealand Dollar Buy 10/18/17 41,375 41,689 (314)
Credit Suisse International
Australian Dollar Buy 10/18/17 2,608,569 2,380,282 228,287
Euro Sell 12/20/17 9,720,103 9,810,724 90,621
Swiss Franc Buy 12/20/17 10,123,734 10,194,860 (71,126)
Goldman Sachs International
British Pound Buy 12/20/17 10,077,053 10,646,425 (569,372)
Chinese Yuan (Offshore) Sell 11/15/17 23,815,455 23,444,864 (370,591)
Japanese Yen Buy 11/15/17 6,756,871 6,903,610 (146,739)
HSBC Bank USA, National Association
Euro Sell 12/20/17 12,175,977 12,350,013 174,036
New Zealand Dollar Buy 10/18/17 1,770,332 1,784,154 (13,822)
JPMorgan Chase Bank N.A.
British Pound Buy 12/20/17 11,907,717 11,552,555 355,162
Canadian Dollar Sell 10/18/17 2,786,782 2,893,278 106,496
Euro Sell 12/20/17 9,570,417 9,660,519 90,102
Japanese Yen Buy 11/15/17 8,698,678 8,784,902 (86,224)
Norwegian Krone Sell 12/20/17 3,162,003 3,278,582 116,579
Singapore Dollar Buy 11/15/17 12,224,245 12,222,870 1,375
South Korean Won Sell 11/15/17 11,547,814 11,798,042 250,228
Swedish Krona Buy 12/20/17 16,663,462 17,068,140 (404,678)
Swiss Franc Buy 12/20/17 14,025,831 14,129,187 (103,356)
State Street Bank and Trust Co.
Australian Dollar Buy 10/18/17 471,269 459,508 11,761
Euro Sell 12/20/17 33,515,928 33,896,848 380,920
Israeli Shekel Buy 10/18/17 6,229,181 6,312,082 (82,901)
Japanese Yen Sell 11/15/17 145,081 150,090 5,009
Swiss Franc Buy 12/20/17 16,194,943 16,311,657 (116,714)
UBS AG
Swiss Franc Buy 12/20/17 15,103,327 15,212,190 (108,863)
WestPac Banking Corp.
Canadian Dollar Sell 10/18/17 2,526,363 2,491,532 (34,831)
Japanese Yen Buy 11/15/17 5,446,062 5,523,303 (77,241)
Unrealized appreciation 2,703,468
Unrealized depreciation (2,815,747)
Total $(112,279)

* 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
GDR Global Depository Receipts: represents ownership of foreign securities on deposit with a custodian bank
Notes to the fund's portfolio
Unless noted otherwise, the notes to the fund's portfolio are for the close of the fund's reporting period, which ran from July 1, 2017 through September 30, 2017 (the reporting period). Within the following notes to the portfolio, references to "ASC 820" represent Accounting Standards Codification 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 $989,960,065.
(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 $456,917, 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 6/30/17 Purchase cost Sale proceeds Investment income Shares outstanding and fair value as of 9/30/17
Short-term investments
Putnam Cash Collateral Pool, LLC*# $18,354,575 $32,564,175 $34,879,500 $33,813 $16,039,250
Putnam Short Term Investment Fund** 8,703,302 55,330,503 49,377,557 28,595 14,656,248
Total Short-term investments $27,057,877 $87,894,678 $84,257,057 $62,408 $30,695,498
* No management fees are charged to Putnam Cash Collateral Pool, LLC. There were no realized or unrealized gains or losses during the period.
# The fund may lend securities, through its agent, to qualified borrowers in order to earn additional income. The loans are collateralized by cash in an amount at least equal to the fair value of the securities loaned. The fair value of securities loaned is determined daily and any additional required collateral is allocated to the fund on the next business day. The remaining maturities of the securities lending transactions are considered overnight and continuous. The risk of borrower default will be borne by the fund's agent; the fund will bear the risk of loss with respect to the investment of the cash collateral. The fund received cash collateral of $16,039,250, which is invested in Putnam Cash Collateral Pool, LLC, a limited liability company managed by an affiliate of Putnam Management. Investments in Putnam Cash Collateral Pool, LLC are valued at its closing net asset value each business day. There are no management fees charged to Putnam Cash Collateral Pool, LLC. The rate quoted in the security description is the annualized 7-day yield at the close of the reporting period. At the close of the reporting period, the value of securities loaned amounted to $16,071,578.
** 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 $1,370,058.
(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 $1,357,854 to cover certain derivative contracts.
Unless otherwise noted, the rates quoted in Short-term investments security descriptions represent the weighted average yield to maturity.
The dates shown on debt obligations are the original maturity dates.
The fund had the following sector concentrations greater than 10% at the close of the reporting period (as a percentage of net assets):
Financials 21.2%
Industrials 14.5
Consumer discretionary 11.9
Information technology 11.1
Consumer staples 10.7
Health care 10.5

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 posted to the fund which cannot be sold or repledged totaled $373,432 at the close of the reporting period.
Collateral pledged by the fund is segregated by the fund's custodian and identified in the fund's portfolio. Collateral can be in the form of cash or debt securities issued by the U.S. Government or related agencies or other securities as agreed to by the fund and the applicable counterparty. Collateral requirements are determined based on the fund's net position with each counterparty.
Termination events applicable to the fund may occur upon a decline in the fund's net assets below a specified threshold over a certain period of time. Termination events applicable to counterparties may occur upon a decline in the counterparty's long-term and short-term credit ratings below a specified level. In each case, upon occurrence, the other party may elect to terminate early and cause settlement of all derivative and foreign exchange contracts outstanding, including the payment of any losses and costs resulting from such early termination, as reasonably determined by the terminating party. Any decision by one or more of the fund's counterparties to elect early termination could impact the fund's future derivative activity.
At the close of the reporting period, the fund had a net liability position of $1,401,434 on open derivative contracts subject to the Master Agreements. Collateral posted by the fund at period end for these agreements totaled $1,370,058 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:
    Argentina $11,024,798 $— $—
    Australia — 24,485,672 —
    Canada 29,636,996 — —
    China 12,124,242 12,394,656 —
    Denmark 13,928,754 — —
    Finland 12,606,387 — —
    France 116,413,120 — —
    Germany 135,765,787 — 45
    Hong Kong — 21,326,309 —
    Ireland 31,331,661 — —
    Italy 19,637,578 — —
    Japan — 197,478,334 —
    Luxembourg — — 254,956
    Netherlands 86,304,430 — —
    Norway 10,079,449 — —
    South Korea — 13,334,692 —
    Spain 17,190,196 — —
    Sweden 11,160,961 — —
    Switzerland 9,907,751 — —
    United Kingdom 152,372,479 — —
    United States 33,016,276 — —
Total common stocks 702,500,865 269,019,663 255,001
Convertible preferred stocks — — 201,916
U.S. treasury obligations — 437,421 —
Short-term investments 15,255,248 19,821,400 —
Totals by level $717,756,113 $289,278,484 $456,917



Valuation inputs
Other financial instruments: Level 1 Level 2 Level 3
Forward currency contracts $— $(112,279) $—
Totals by level $— $(112,279) $—

During the reporting period, transfers within the fair value hierarchy, if any (other than certain transfers involving non-U.S. equity securities as described in the Security valuation note above), did not represent, in the aggregate, more than 1% of the fund's net assets measured as of the end of the period. Transfers are accounted for using the end of period pricing valuation method.
At the start and close of the reporting period, Level 3 investments in securities represented less than 1% of the fund's net assets and were not considered a significant portion of the fund's portfolio.

Fair Value of Derivative Instruments as of the close of the reporting period
Asset derivatives Liability derivatives
Derivatives not accounted for as hedging instruments under ASC 815 Fair value Fair value
Foreign exchange contracts $2,703,468 $2,815,747
Total $2,703,468 $2,815,747


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)$437,300,000

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



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: November 28, 2017

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: November 28, 2017

By (Signature and Title):
/s/ Janet C. Smith
Janet C. Smith
Principal Financial Officer
Date: November 28, 2017