Global Health Care Fund  (PHSTX)

Investing in the health-care sector since 1982

Objective

The fund seeks capital appreciation.

Strategy and process

  • A dynamic sector: From biotech and drugs to devices and hospitals, the fund invests in industries that can profit from the global demand for health care products and services.
  • A global approach: To seek the best opportunities, the fund's managers have the flexibility to invest in stocks from around the world.
  • Active management: The managers, supported by experienced research analysts, combine rigorous fundamental research with macroeconomic views to pinpoint opportunities across the sector.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $57.70
-0.14% | $-0.08
$59.78
10/19/17
$50.02
12/22/16
Historical fund price

Fund facts as of 10/31/17

Total net assets
$1,415.48M
Turnover (fiscal year end)
53%
Dividend frequency
Annually
Number of holdings
47
Fiscal year-end
August
CUSIP / Fund code
746778109 / 0013
Inception date
05/28/82
Category
Global Sector
Open to new investors
Ticker
PHSTX

Management team


Portfolio Manager, Analyst

Co-Director of Equity Research

Portfolio Manager, Analyst


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Performance

Consistency of positive performance over five years

Performance represents 5-year returns in rolling quarter-end periods since inception.

Performance shown above does not reflect the effects of any sales charges. Note that returns of 0.00% are counted as positive periods. For complete fund performance, please see below.

26.48%

Best 5-year annualized return

(for period ending 03/31/99)


-2.34%

Worst 5-year annualized return

(for period ending 09/30/05)


11.92%

Average 5-year annualized return


  • Total return (%) as of 09/30/17

  • Annual performance as of 09/30/17

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge 11.05% 6.08% 15.29% 9.46%
After sales charge 4.66% 4.01% 13.93% 8.81%
MSCI World Health Care Index (ND) 12.41% 6.72% 13.85% 8.72%

Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will vary, and you may have a gain or loss when you sell your shares. To obtain the most recent month-end performance, visit putnam.com. Performance assumes reinvestment of distributions and does not account for taxes. Returns before sales charge do not reflect the current maximum sales charges as indicated below. Had the sales charge been reflected, returns would be lower. Returns at public offering price (after sales charge) for class A and class M shares reflect the current maximum initial sales charges of 5.75% and 3.50% for equity funds and Putnam Absolute Return 500 Fund and 700 Fund, and 4.00% and 3.25% for income funds (1.00% and 0.75% for Putnam Floating Rate Income Fund, Putnam Absolute Return 100 Fund and 300 Fund, and Putnam Short-Term Municipal Income Fund), respectively. Class B share returns reflect the applicable contingent deferred sales charge (CDSC), which is 5% in the first year, declining to 1% in the sixth year, and is eliminated thereafter (except for Putnam Floating Rate Income Fund, Putnam Absolute Return 100 Fund and 300 Fund, and Putnam Short-Term Municipal Income Fund, which is 1% in the first year, declining to 0.5% in the second year, and is eliminated thereafter). Class C shares reflect a 1% CDSC the first year that is eliminated thereafter. Performance for class B, C, M, R, T1, and Y shares prior to their inception is derived from the historical performance of class A shares, adjusted for the applicable sales charge (or CDSC) and, except for class Y shares, the higher operating expenses for such shares (with the exception of Putnam Tax-Free High Yield Fund and Putnam AMT-Free Municipal Fund, which are based on the historical performance of class B shares). Class R5/R6 shares, available to qualified employee-benefit plans only, are sold without an initial sales charge and have no CDSC. Class Y shares are generally only available for corporate and institutional clients and have no initial sales charge. Performance for Class R5/R6 shares before their inception are derived from the historical performance of class Y shares, which have not been adjusted for the lower expenses; had they, returns would have been higher. Class A, M, and T1 shares of Putnam money market funds have no initial sales charge. For a portion of the period, some funds had expenses limitations or had been sold on a limited basis with limited assets and expenses, without which returns would be lower.

Performance snapshot

  Before sales charge After sales charge
1 mt. as of 10/31/17 -2.55 % -8.16 %
YTD as of 11/17/17 14.92 % 8.31 %

Risk-adjusted performance as of 10/31/17

Alpha (3 yrs.) -2.09
Sharpe ratio (3 yrs.) 0.26
Treynor ratio (3 yrs.) 3.19
Information ratio (3 yrs.) -0.45

Volatility as of 10/31/17

Standard deviation (3 yrs.) 13.41%
Beta 1.09
R-squared 0.93

Capture ratio as of 10/31/17

Up-market (3 yrs.) 100.42
Down-market (3 yrs.) 112.28

Morningstar ratings as of 10/31/17

Health Rating Funds in category
Overall (126)
3 yrs. (126)
5 yrs. (118)
10 yrs. (99)

Distributions

Record/Ex dividend date 12/22/16
Payable date 12/27/16
Income $0.263
Extra income $0.0
Short-term cap. gain $0.0
Long-term cap. gain $5.084

Lipper rankings are based on total return without sales charge relative to all share classes of funds with similar objectives as determined by Lipper. Past performance is not indicative of future results.

The Morningstar RatingTM 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 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

The up-market capture ratio is used to evaluate how well an investment manager performed relative to an index during periods when that index has risen. The ratio is calculated by dividing the manager’s returns by the returns of the index during the up-market, and multiplying that factor by 100. The down-market capture ratio is used to evaluate how well an investment manager performed relative to an index during periods when that index has dropped. The ratio is calculated by dividing the manager’s returns by the returns of the index during the down-market and multiplying that factor by 100.


Holdings

Top 10 holdings as of 10/31/17

UnitedHealth Group 5.95%
Amgen 5.47%
Jazz Pharmaceuticals 5.27%
Becton Dickinson And 5.25%
Biogen 5.11%
Danaher Corp 5.00%
Bayer Ag 4.98%
Novartis Ag 4.37%
Johnson & Johnson 4.33%
Vertex Pharmaceuticals 4.08%
Top 10 holdings, percent of portfolio 49.81%

Full portfolio holdings as of 09/30/17

UNITEDHEALTH GROUP INC 5.36%
AMGEN INC 5.01%
BECTON DICKINSON AND CO 4.71%
JAZZ PHARMACEUTICALS PLC 4.61%
NOVARTIS AG-REG 4.39%
BAYER AG-REG 4.25%
DANAHER CORP 4.02%
JOHNSON & JOHNSON 3.90%
BIOGEN INC 3.70%
CELGENE CORP 3.69%
SANOFI 3.63%
GILEAD SCIENCES INC 3.30%
MERCK & CO. INC. 3.14%
ROCHE HOLDING AG-GENUSSCHEIN 2.89%
ASTRAZENECA PLC 2.83%
BOSTON SCIENTIFIC CORP 2.78%
VERTEX PHARMACEUTICALS INC 2.44%
PFIZER INC 2.42%
DENTSPLY SIRONA INC 2.40%
SHIRE PLC 1.99%
CLOVIS ONCOLOGY INC 1.98%
INTUITIVE SURGICAL INC 1.76%
BRISTOL-MYERS SQUIBB CO 1.70%
REGENERON PHARMACEUTICALS 1.70%
MCKESSON CORP 1.64%
AGILENT TECHNOLOGIES INC 1.48%
MEDICINES COMPANY 1.48%
CHUGAI PHARMACEUTICAL CO LTD 1.45%
GLAXOSMITHKLINE PLC 1.23%
SHIONOGI & CO LTD 1.06%
BIOVERATIV INC 1.00%
WALGREENS BOOTS ALLIANCE INC 0.92%
CLINIGEN GROUP PLC 0.87%
PACIRA PHARMACEUTICALS INC 0.83%
BIO-RAD LABORATORIES-A 0.81%
ALNYLAM PHARMACEUTICALS INC 0.80%
GRIFOLS SA-ADR 0.74%
ACLARIS THERAPEUTICS INC 0.73%
PENUMBRA INC 0.65%
ILLUMINA INC 0.58%
AIN HOLDINGS INC 0.57%
CHINA BIOLOGIC PRODUCTS HOLD 0.57%
NIPPON SHINYAKU CO LTD 0.56%
FRESENIUS MEDICAL CARE AG & 0.47%
GENMARK DIAGNOSTICS INC 0.40%
AUROBINDO PHARMA LTD 0.39%
ASPEN PHARMACARE HOLDINGS LT 0.35%
PROTHENA CORP PLC 0.27%
FEDERAL STREET ACQUISITION 0.26%
OVID THERAPEUTICS INC - RESTRICTED 0.17%
ZUR ROSE GROUP AG 0.16%
SINOPHARM GROUP CO-H 0.09%
EUR/USD 12/20/2017 BANKAM 0.02%
CHF/USD 12/20/2017 JPMCB 0.01%
DKK/USD 12/20/2017 CITI 0.01%
HTG MOLECULAR DIAGNOSTICS 0.01%
AUD/USD 10/18/2017 HSBCB 0.00%
INDIAN RUPEE CALL ACCOUNT 0.00%
JPY/USD 11/15/2017 CSI-FX 0.00%
NEURALSTEM INC SERIES K COMMON STOCK PURCHASE WARRANT 0.00%
POUND STERLING CALL ACCOUNT 0.00%

Prior top 10 holdings

Top 10 holdings as of 10/31/17
UnitedHealth Group
Amgen
Jazz Pharmaceuticals
Becton Dickinson And
Biogen
Danaher Corp
Bayer Ag
Novartis Ag
Johnson & Johnson
Vertex Pharmaceuticals
Holdings represent 49.81% of portfolio
Top 10 holdings as of 09/30/17
UnitedHealth Group
Amgen
Becton Dickinson And
Jazz Pharmaceuticals
Novartis Ag
Bayer Ag
Danaher Corp
Johnson & Johnson
Biogen
Celgene Corp
Holdings represent 43.64% of portfolio
Top 10 holdings as of 08/31/17
UnitedHealth Group
Becton Dickinson And
Amgen
Jazz Pharmaceuticals
Novartis Ag
Bayer Ag
Johnson & Johnson
Danaher Corp
Biogen
Sanofi
Holdings represent 43.58% of portfolio
Top 10 holdings as of 07/31/17
UnitedHealth Group
Becton Dickinson And
Jazz Pharmaceuticals
Amgen
Novartis Ag
Johnson & Johnson
Bayer Ag
Biogen
Danaher Corp
Sanofi
Holdings represent 43.71% of portfolio

Portfolio composition as of 10/31/17

Common stock 97.95%
Cash and net other assets 2.05%

Equity statistics as of 10/31/17

Median market cap $21.89B
Weighted average market cap $95.16B
Price to book 3.84
Price to earnings 20.24

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Consider these risks before investing: International investing involves currency, economic, and political risks. Emerging-market securities carry illiquidity and volatility risks. Investments in small and/or midsize companies increase the risk of greater price fluctuations. The health-care industries may be affected by technological obsolescence, changes in regulatory approval policies for drugs, medical devices or procedures, and changes in governmental and private payment systems. The fund concentrates on a limited group of industries and is non-diversified. Because the fund may invest in fewer issuers, it is vulnerable to common economic forces and may result in greater losses and volatility. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. The use of short selling may result in losses if the securities appreciate in value. Risks associated with derivatives include increased investment exposure (which may be considered leverage) and, in the case of over-the-counter instruments, the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations. Stock prices may fall or fail to rise over time for several reasons, including general financial market conditions and factors related to a specific issuer or industry. You can lose money by investing in the fund.

Top Industry Sectors as of 10/31/17

Pharmaceuticals 43.19%
Biotechnology 24.64%
Health Care Equipment & Supplies 19.12%
Health Care Providers & Services 6.53%
Life Sciences Tools & Services 3.44%
Cash and net other assets 2.05%
Food & Staples Retailing 0.76%
Diversified Financial Services 0.26%
Health Care Technology 0.01%

The unclassified sector (where applicable) includes exchange traded funds and other securities not able to be classified by sector.

Sectors will vary over time. Represents the equity portion of the portfolio.

Country Allocation as of 10/31/17

United States 68.04%
Switzerland 7.25%
United Kingdom 7.09%
Germany 5.46%
Japan 4.49%
France 3.58%
Cash and net other assets 2.05%
Spain 0.82%
China 0.60%
 
Other
0.62%
South Africa 0.37%
Ireland 0.25%

Expenses

Expense ratio

Class A Class B Class C Class M Class R Class Y
Total expense ratio 1.09% 1.84% 1.84% 1.59% 1.34% 0.84%
What you pay 1.09% 1.84% 1.84% 1.59% 1.34% 0.84%

Sales charge

Investment Breakpoint Class A Class B Class C Class M Class R Class Y
$0-$49,999 5.75% 0.00% 0.00% 3.50% -- --
$50,000-$99,999 4.50% 0.00% 0.00% 2.50% -- --
$100,000-$249,999 3.50% -- 0.00% 1.50% -- --
$250,000-$499,999 2.50% -- 0.00% 1.00% -- --
$500,000-$999,999 2.00% -- 0.00% 1.00% -- --
$1M-$4M 0.00% -- -- -- -- --
$4M-$50M 0.00% -- -- -- -- --
$50M+ 0.00% -- -- -- -- --

CDSC

  Class A (sales for $1,000,000+) Class B Class C Class M Class R Class Y
0 to 9 mts. 1.00% 5.00% 1.00% -- -- --
9 to 12 mts. 0.00% 5.00% 1.00% -- -- --
2 yrs. -- 4.00% 0.00% -- -- --
3 yrs. -- 3.00% 0.00% -- -- --
4 yrs. -- 3.00% 0.00% -- -- --
5 yrs. -- 2.00% 0.00% -- -- --
6 yrs. -- 1.00% 0.00% -- -- --
7+ yrs. -- 0.00% 0.00% -- -- --

The MSCI World Health Care Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets in the health care sector. You cannot invest directly in an index.

Consider these risks before investing: International investing involves currency, economic, and political risks. Emerging-market securities carry illiquidity and volatility risks. Investments in small and/or midsize companies increase the risk of greater price fluctuations. The health-care industries may be affected by technological obsolescence, changes in regulatory approval policies for drugs, medical devices or procedures, and changes in governmental and private payment systems. The fund concentrates on a limited group of industries and is non-diversified. Because the fund may invest in fewer issuers, it is vulnerable to common economic forces and may result in greater losses and volatility. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. The use of short selling may result in losses if the securities appreciate in value. Risks associated with derivatives include increased investment exposure (which may be considered leverage) and, in the case of over-the-counter instruments, the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations. Stock prices may fall or fail to rise over time for several reasons, including general financial market conditions and factors related to a specific issuer or industry. You can lose money by investing in the fund.