ACTIVE EQUITY

Growth Opportunities Fund:
Blending investment themes with deep fundamental research

A thematic approach is a distinctive feature of the 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. See fund details.

Putnam Growth Opportunities Fund

Durable growth themes and companies that benefit from them

Explore 11 themes that the Growth Opportunities Fund team believes could drive sustained growth for businesses over a multi-year time horizon.

Viral effects
We are focused on identifying companies across a multitude of industries that will be beneficiaries once the dust settles. See which company leading-edge diagnostic tools.
E-commerce and payment processing
There are already more than 80 million mobile phone peer-to-peer payment users in the United States. See which company has experienced consistent, mid-teens year-over-year growth in active accounts.
5G connectivity and the internet of things
The rapid growth in connected devices and systems will drive carriers to invest rapidly in 5G networks. See which stocks we believe offer strong growth potential as companies make the transition to 5G.
Autonomous and electric vehicles
The revenue opportunity for semiconductor companies that supply these markets is growing at above-market rates. See which company already has decades of experience providing hardware and software for automakers.
Increased screen time
In 2019, for the first time, U.S. consumers spent more time with on mobile devices than watching TV. See which company with high free cash flow margins could grow EPS by 20% annually over the next three-plus years.
Cloud infrastructure and software
Businesses are increasingly shifting their information technology systems to cloud storage. See which company we believe can achieve an annual growth rate of more than 30% by 2023.
Personalized medicine
The genetic makeup of patients will become increasingly important in the therapy and treatment they receive. See which company opened the world’s largest dedicated cell and gene therapy facility in 2018.
Digital marketing
More companies are recognizing the importance of digital marketing in driving business growth. Learn about one that is in a unique position to deliver effective marketing campaigns to targeted audiences.
Humanization of pets
Pets increasingly receive the same level of attention, care, and health maintenance as human family members do. See which company has spent more on R&D over the past five years than all of its competitors combined.
Controlled distribution
How companies sell and distribute their products and services can offer a distinct advantage. See which company's direct distribution model has resulted in plans to double its digital sales over the next five years.
Amazon’s influence
As Amazon continues disrupting industries, niche products or services may give certain companies a competitive edge. See which businesses we believe should prove resilient to the competitive threat from the likes of Amazon.

A five-star Overall rating from Morningstar

The combination of deep fundamental research and a thematic approach has led to solid performance for the portfolio. Putnam Growth Opportunities Fund received a five-star Morningstar rating for 3-, 5-, and 10-year performance, as well as a five-star Overall rating.

Portfolio snapshot as of 06/30/20

   
Number of holdings 56
Beta 0.95
Price to earnings 35.47
Up-market (3 yrs.) 102.73
Down-market (3 yrs.) 89.97

Five-star Morningstar Ratings as of

Time period Funds in category Morningstar Rating
Overall 1237
3 yrs. 1237
5 yrs. 1084
10 yrs. 809
Morningstar category: Large Growth

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.

Meet the managers: A commitment to deep fundamental research

Learn more about the fund's theme-based strategy and the experiences that shaped the managers' investing approach.

Gregory McCullough and Richard Bodzy

Richard E. Bodzy

Portfolio Manager

13 years in the industry

10 years at Putnam Investments

Gregory D. McCullough, CFA

Portfolio Manager, Analyst

12 years in the industry

1 year at Putnam Investments

Pandemic speeds health and tech demand

Vigilant about the virus, policy support, elections

Remote work, remote medical treatment drive growth

Pandemic unleashes demand for services

Insights from Putnam's equity team

Putnam's equity portfolio managers and analysts offer their perspectives on investing, the economy, and the financial markets.

Company diversity and social justice

Company diversity and social justice

Company diversity is a step toward equity and equity is a step toward inclusion, which is important to company success.

Read post

Disruptive change: A growth driver for small companies

Disruptive change: A growth driver for small companies

Disruptive change is often the force that enables small companies to compete against their larger peers.

Read post

Mid-year insights: Assessing the risks

Mid-year insights: Assessing the risks

We discuss the potential impact of a second wave of the coronavirus and we offer insights on how businesses are faring as COVID-19 restrictions are eased.

Equity Outlook  |  Q3 2020