Putting durable growth themes to work
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.
THEME: E-commerce and payment processing
The U.S. e-commerce market has grown 16% annually since 2001, and peer-to-peer electronic money transfers have rapidly become more common. Credit card usage for consumer-to-business payments has increased at a steady pace globally. This should continue as regions with less card usage close the gap with North America and Europe.
The digitization of other large payment markets has yet to catch up with the penetration of credit cards in the consumer-to-business market.
STOCK: Mastercard (MA)
Mastercard’s near-universal merchant acceptance and large consumer base sustains a two-sided network with scale advantages. Mastercard also continues to invest in emerging growth markets within payments.
- Mastercard is accelerating digitization of cash through cards and e-commerce.
- It is expanding value-added services such as fraud monitoring, authentication, and analytics.
- New flows from large payment markets can expand the total addressable market of Mastercard’s traditional business.
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.
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