International Durable Equity (ADR-Only)
- We believe companies with all three fundamental characteristics will typically exhibit margin stability, generate a higher return on capital employed, and convert a higher proportion of net income into free cash flows
- We believe stocks of such companies offer attractive compounding effects and should outperform the broader market over time, while exhibiting lower volatility in a market correction.
- A long time horizon is paramount to the investment process for our desired compounding to work
Benchmark indexMSCI All Country World Index ex-USA Growth (ND)
AUM ($M) Strategy0.3
AUM ($M) Composite0.3
Typical range of portfolio holdings20–40
*No assurance can be given that the investment objective will be achieved or that an investor will receive a return of all or part of his or her investment. Actual results could be materially different from the stated goals. Investors should carefully consider the risk involved before deciding to invest. As with any investment, there is a potential for profit as well as the possibility of loss. Portfolio targets are subject to change.
Performance and holdings as of 12/31/20
Composite performance (%)
Past performance is not a guarantee of future results. An investment in this strategy can lose value. Returns are stated in U.S. dollars and include the reinvestment of dividends and interest. Returns less than one year are not annualized. Most recent quarter-end performance is preliminary. Returns are subject to change. Portfolio characteristics are for a representative account and are shown for illustrative purposes only. Portfolio characteristics of individual accounts managed to a model portfolio strategy may differ as a result of account size, client-imposed investment restrictions, the timing of client investments, market, economic and individual company considerations, and other factors. The inclusion of holdings information should not be interpreted as a recommendation to buy or sell or hold any security. The securities identified do not represent all the securities purchased, sold, or recommended for client accounts. It should not be assumed that an investment in the securities identified was or will be profitable. Holdings are subject to change.
Top 10 portfolio holdings (%)
|Lonza||4.6||Life sciences tools and services|
|Zalando||4.0||Internet and direct marketing retail|
|Compass Group||3.8||Hotels,restaurants and leisure|
Performance commentary as of 12/31/20
International stocks climbed in the fourth quarter, just as distribution began for two COVID-19 vaccines. While the pandemic hurt global economies and caused hardship in so many ways, returns for many stocks surged in 2020. With that as a backdrop, the MSCI ACWI ex-U.S. Growth Index returned 13.92%.
The portfolio underperformed the benchmark due to weak stock selection. Sector allocations helped offset some of the underperformance. Selections within consumer discretionary hurt most, followed by communication services. Selections and overweight positioning in utilities contributed on a relative basis.
From a country perspective, stock selection in China and France detracted most. Names held in Denmark and the United Kingdom had positive impacts on relative results.
Performance commentary is not intended to be relied upon as a forecast or as research, or investment advice, and is not a recommendation, offer, or solicitation to buy or sell any securities or to adopt any investment strategy. It should not be assumed that an investment in any security mentioned was or will be profitable. As with any investment, there is a potential for profit as well as the possibility of loss. Past performance is no guarantee of future results.
The MSCI All Country World Index ex USA Growth Index captures large- and mid-cap securities exhibiting overall growth style characteristics across 22 developed-market (DM) countries and 26 emerging-markets (EM) countries. You cannot invest directly in an index.
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Model-based managed accounts programs: Putnam Investments and its affiliates, which include The Putnam Advisory Company, LLC and Putnam Investment Management, LLC (“Putnam”), is limited to providing non-discretionary investment management services through Separately Managed Account (SMA) and Unified Managed Account (UMA) programs or other third-party platforms (collectively, the “Financial Intermediary”), where Putnam generally provides ongoing investment recommendations through one or more “model” portfolios, and the Financial Intermediary, rather than Putnam, makes investment decisions and executes trades on behalf of its underlying clients. The Financial Intermediary decides in its discretion whether to make any changes to the model that Putnam recommends, and is also solely responsible for determining the suitability of the strategy and investments for each client that participates. This information is not personalized investment advice or an investment recommendation by Putnam, and is intended for use only by a Financial Intermediary in connection with its management of its own clients’ accounts. Putnam does not have investment discretion over, or place trade orders for, any portfolio or account derived from this information. Performance of any portfolio or account derived from this information may vary materially from the performance shown herein. There is no guarantee that any investment strategy illustrated will be successful or achieve any particular level of results. Information and other marketing materials created by Putnam concerning a model portfolio strategy — including holdings, performance and other characteristics — may not be indicative of a client’s actual experience from an account managed in accordance with the strategy. This material has been created by Putnam and the information included herein has not been verified by a Financial Intermediary and may materially differ from information provided by a Financial Intermediary. Putnam is not responsible for overseeing the provision of services by a Financial Intermediary and cannot assure the quality of its services.