Fund Facts and Performance Putnam
Mutual Funds

Putnam Investments

Why Putnam Investments?
Fund Facts and Performance:
Daily Fund Prices (NAV):
 International Equity Fund Daily Fund Prices (NAV) Growth
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Investment Objective
Fund Description
Fund Returns
Expense Ratio
Lipper Rankings
Top 10 Holdings
Industry Sectors
Country Allocation
Portfolio Composition
Portfolio Characteristics
Fund Facts
Investment Management
Prospectus

Investment Objective
The fund seeks capital appreciation.

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Fund Description
Formerly International Growth Fund. The name change does not reflect a shift in fund objective or strategy.



Putnam International Equity Fund invests mainly in large and mid-sized international stocks, targeting companies believed to be priced below their long-term worth. The portfolio can own growth and value stocks without a bias toward either style.

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Fund Returns
As of Quarter End June 30, 2007All returns in percentages
Class Last
Quarter
Year
to Date
1
Year
3
Year
5
Year
10 Years Life of
Fund
A NAV 7.45% 11.43% 29.51% 22.79% 15.48% 10.81% 11.79%
  POP 1.81% 5.57% 22.71% 20.59% 14.24% 10.22% 11.43%
  Inception date: February 28, 1991
B NAV 7.27% 11.04% 28.60% 21.89% 14.62% 9.99% 10.93%
  CDSC 2.27% 6.03% 23.60% 21.21% 14.39% 9.99% 10.93%
  Inception date: June 1, 1994
C NAV 7.22% 11.02% 28.55% 21.88% 14.62% 9.99% 10.96%
  POP 6.22% 10.02% 27.55% 21.88% 14.62% 9.99% 10.96%
  Inception date: July 26, 1999
M NAV 7.32% 11.15% 28.89% 22.19% 14.90% 10.26% 11.22%
  POP 3.85% 7.52% 24.72% 20.85% 14.15% 9.90% 11.00%
  Inception date: December 1, 1994
MSCI EAFE Index
  NAV 6.40% 10.74% 27.00% 22.24% 17.73% 7.66%  

Fund Returns
As of Month End July 31, 2007All returns in percentages
Class Last
Quarter
Year
to Date
1
Year
3
Year
5
Year
10 Years Life of
Fund
A NAV --- 8.81% 25.25% 23.09% 17.51% 9.86% 11.57%
  POP --- 3.09% 18.69% 20.90% 16.25% 9.27% 11.20%
  Inception date: February 28, 1991
B NAV --- 8.35% 24.37% 22.19% 16.63% 9.04% 10.71%
  CDSC --- 3.35% 19.37% 21.52% 16.42% 9.04% 10.71%
  Inception date: June 1, 1994
C NAV --- 8.35% 24.32% 22.18% 16.63% 9.05% 10.74%
  POP --- 7.35% 23.32% 22.18% 16.63% 9.05% 10.74%
  Inception date: July 26, 1999
M NAV --- 8.49% 24.67% 22.50% 16.94% 9.32% 11.00%
  POP --- 4.95% 20.62% 21.15% 16.16% 8.96% 10.77%
  Inception date: December 1, 1994

Data is historical. Past performance is no guarantee of future results. More recent returns may be worth more or less than those shown. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. For the most recent month-end performance, visit www.putnaminvestments.com.



Performance assumes reinvestment of distributions and does not account for taxes. Returns at public offering price (POP) for class A and class M shares reflect the current maximum initial sales charges of 5.25% and 3.25% for equity funds, and 3.75% and 3.25% for income funds (3.25% and 2.00% for Putnam Limited Duration Government Income Fund and Putnam Floating Rate Income Fund), respectively. POP performance of income funds' class A shares (other than Putnam Limited Duration Government Income Fund and Putnam Floating Rate Income Fund) and equity funds' class M shares reflects a reduction in maximum sales charge that took effect April 1, 2005. Class B share returns reflect the applicable contingent deferred sales charge (CDSC), which is 5% in the first year, declines to 1% in the sixth year, and is eliminated thereafter (except for Putnam Limited Duration Government Income Fund and Putnam Floating Rate Income Fund, which is 3% in the first year, declines to 1% in the fourth year, and is eliminated thereafter). Class C shares reflect a 1% CDSC the first year that is eliminated thereafter. Performance for class B, C, M, R, T, and Y shares prior to their inception is derived from the historical performance of class A shares, adjusted for the applicable sales charge (or CDSC) and, except for class Y shares, the higher operating expenses for such shares (with the exception of Putnam Tax-Free High Yield Fund and Putnam AMT-Free Insured Municipal Fund, which are based on the historical performance of class B shares). Class A, M, and T shares of Putnam money market funds have no initial sales charge. For a portion of the period some funds may have limited expenses or been sold on a limited basis with limited assets and expenses, without which returns would be lower. A short-term trading fee of up to 1% may apply.

The Morgan Stanley Capital International (MSCI) EAFE Index is an unmanaged index of equity securities from developed countries in Western Europe, the Far East, and Australasia. Indexes assume reinvestment of all distributions and do not account for fees. Securities in the fund do not match those in the indexes and performance of the fund will differ. It is not possible to invest directly in an index.

International investing involves certain risks, such as currency fluctuations, economic instability, and political developments. Additional risks may be associated with emerging market securities, including illiquidity and volatility.

You can lose money by investing in a fund. Any given fund may not achieve its goal, and is not intended as a complete investment program. All funds have risk. The value and/or returns of a portfolio will fluctuate with market conditions. You may have more or less than the original amount invested when you redeem your shares.

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Expense Ratio

Class Fund's total expense ratio What you pay
A 1.26% 1.26%
B 2.01% 2.01%
C 2.01% 2.01%
M 1.76% 1.76%

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Lipper Rankings 
As of July 31, 2007 
Class 1 Year 3 Years 5 Years 10 Years
Lipper Category: International Large-Cap Core
A 17% (34/211) 25% (48/194) 42% (72/172) 7% (6/91)
B 29% (60/211) 40% (78/194) 61% (104/172) 12% (11/91)
C 30% (62/211) 41% (79/194) 61% (104/172) ---
M 24% (50/211) 34% (65/194) 53% (90/172) 11% (10/91)

Lipper Analytical Services, Inc. is an industry research firm whose rankings are based on total return performance and do not reflect the effect of sales charges. Each fund is ranked within a universe of funds similar in investment objective. Past performance is no guarantee of future results.

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Top 10 HoldingsHoldings will vary over time
As of July 31, 2007Holdings represent 23.34% of portfolio
Rank Fund Percentage of Portfolio
1. Bp Plc Sedol 0798059 2.84%
2. Bhp Billiton Plc Sedol 0056650 2.53%
3. Total Sa Sedol B15c557 2.45%
4. Banco Bilbao Viz Sedol 5501906 2.43%
5. Allianz Se-Reg Sedol 5231485 2.34%
6. Basf Ag Sedol 5086577 2.32%
7. Roche Hldg-Genus Sedol 7110388 2.32%
8. Enel Spa Sedol 7144569 2.14%
9. Statoil Asa Sedol 7133608 2.02%
10. Nestle Sa-Registered Sedol 7123870 1.95%

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Industry Sectors 
As of July 31, 2007Sectors will vary over time
Rank Sector Percentage of Portfolio
1. Financial 27.18%
2. Consumer Cyclical 11.57%
3. Basic Materials 9.81%
4. Other 9.61%
5. Energy 9.28%
6. Healthcare 8.36%
7. Consumer Staples 6.71%
8. Technology 6.60%
9. Transportation 6.06%
10. Utilities 4.82%

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Country Allocation 
As of July 31, 2007Allocations will vary over time
Rank Country Percentage of Portfolio
1. United Kingdom 22.27%
2. Japan 14.39%
3. Germany 12.80%
4. France 9.26%
5. Australia 7.43%
6. Switzerland 4.98%
7. Norway 3.65%
8. Italy 3.38%
9. Greece 3.11%
10. Spain 2.85%
11. Singapore 2.19%
12. Ireland 1.96%
13. South Korea 1.80%
14. Belgium 1.68%
15. Sweden 1.46%
16. Finland 1.45%
17. Netherlands 1.42%
18. China 0.87%
19. Russia 0.82%
20. Austria 0.76%
21. Taiwan 0.51%
22. Hong Kong 0.37%
23. Brazil 0.14%
24. India 0.06%
25. Mexico 0.06%
26. Canada 0.05%
27. Malaysia 0.05%
28. South Africa 0.05%
29. Israel 0.03%
30. Philippines 0.03%
31. Kazakhstan 0.02%
32. Poland 0.02%
33. Thailand 0.02%
34. United Arab Emirates 0.02%
35. Egypt 0.01%
36. Hungary 0.01%
37. Indonesia 0.01%
38. Turkey 0.01%

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Portfolio Composition 
As of July 31, 2007Composition will vary over time
Allocation Percentage
Common Stock 100.00%

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Portfolio Characteristics 
As of July 31, 2007Portfolio characteristics will vary over time
Risk
Beta1.06%
Standard Deviation9.67%
Yield
Class Type NAV POP
A SEC Yield as of 12/28/2004 1.46% 1.38%
  SEC Yield (unsubsidized) 1.40% 1.33%
B SEC Yield as of 12/28/2004 0.73% --
  SEC Yield (unsubsidized) 0.67% --
C SEC Yield as of 12/28/2004 0.73% --
  SEC Yield (unsubsidized) 0.67% --
M SEC Yield as of 12/28/2004 0.97% 0.92%
  SEC Yield (unsubsidized) 0.92% 0.87%
Distribution
Class Record/Ex
Dividend Date
Payable
Date
Income ST Cap Gain LT Cap Gain
A 12/19/2006 12/28/2006 $0.700000 $0.195000 $1.268000
B 12/19/2006 12/28/2006 $0.437000 $0.195000 $1.268000
C 12/19/2006 12/28/2006 $0.466000 $0.195000 $1.268000
M 12/19/2006 12/28/2006 $0.540000 $0.195000 $1.268000

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Fund Facts 
As of July 31, 2007 
Fiscal Year EndJune
Fund StatusOpen to new investors
Dividend FrequencyAnnually
Number of Issues440
Turnover (as of fiscal year end)94.85%

Class Inception Symbol CUSIP Number of
Accounts
Outstanding
Shares
Net Assets
A February 28, 1991 POVSX 74680E101 208,977 120,732,089 4,115,103,489
B June 1, 1994 POVBX 74680E200 91,314 29,307,982 958,309,352
C July 26, 1999 PIGCX 74680E309 18,198 8,738,769 291,351,826