Putting durable growth themes to workA 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.
THEME: Viral effectsThe Covid-19 pandemic brought significant change in areas such as consumer-purchasing preferences, human communication, and workflows.
We focus on identifying long-term beneficiaries in a post-pandemic world.
Many businesses that were resilient and strong through the pandemic lockdowns have become even stronger, taking market share and further cementing their competitive moats.
STOCK: Danaher (DHR)Danaher develops leading-edge diagnostic tools.
- Diagnostic testing for all types of viruses will become more prevalent as open economies and free movement of people will need to be balanced with safeguards against infectious diseases.
- Several of Danaher's portfolio companies, such as Cepheid, Pall, IDT, and Radiometer, are delivering a significant tailwind to its growth.
- We expect to see a boost in secular demand for Cytiva, Danaher's bioprocessing business, as R&D spend and innovation in the biopharma space should run at structurally elevated levels.
- Combined, we expect normalized mid to high single-digit revenue growth for Danaher for several years.
Putnam Growth Opportunities Fund
See how investing in companies with durable long-term growth prospects, high and/or improving capital returns, and a strong ownership culture drives 5-star performance as of 5/31/2020.
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Learn more about the distinctive thematic approach and how the team analyzes global trends to identify which themes could drive sustained growth for Putnam Growth Opportunities Fund.
The Morningstar Rating™ for funds, or "star rating," is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and ten-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36 to 59 months of total returns, 60% five-year rating/40% three-year rating for 60 to 119 months of total returns, and 50% ten-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the ten-year overall star rating formula seems to give the most weight to the ten-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings do not take into account the effects of sales charges and loads.
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