Humanization of pets

Putnam Investments, 06/25/20


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A thematic approach is a distinctive feature of Putnam Growth Opportunities Fund. The team analyzes global trends, as well as problems and potential solutions, to identify which themes could drive sustained growth for businesses over a multi-year time horizon.

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THEME: Humanization of pets

Pets have become an increasingly important part of the typical household, receiving the same level of attention, care, and health maintenance as human family members do. Preventative-care treatments and testing for companion animals are growing, along with overall pet ownership levels. Consumer demand for these services is unwavering, and the diagnostic market outside the United States provides another long-term opportunity for growth.

With this theme, we seek to capitalize on the strong and rapidly growing demand for quality pet care.

STOCK: Idexx Laboratories (IDXX)

Idexx is an animal health-care company specializing in diagnostic testing, including in-office testing kits for veterinarians.
  • The company has a 70% share of point-of-care facilities, and has been growing its earnings at double-digit rates.
  • Idexx’s testing kits, components, and supplies — many of which are disposable items — generate a healthy level of recurring revenue.
  • Idexx operates in a three-player oligopoly market, and the company has spent more on R&D over the past five years than its competitors combined.

Idexx Laboratories: 1.76% (as of 5/31/2020) | See complete holdings


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