Global Health Care

Seeks consistent alpha generation driven by stock selection

Research-intensive process

Combines deep fundamental research with technical expertise and actively monitors scientific innovation and regulatory changes to identify opportunities

Innovation-driven growth

Seeks to harness the steady, global demand for health care and innovative solutions to pursue attractive returns regardless of economic conditions

Concentrated, high-conviction approach

Pursues alpha over a full market cycle by combining a bottom-up approach and disciplined risk management to build a focused portfolio of 40–50 high-conviction names

Strategy highlights

Inception date

August 31, 1993

Benchmark

MSCI World Health Care Index (ND)

Total strategy assets

$1.9B

(as of March 2024)

Investment vehicles

  • Separate account
  • U.S. mutual fund

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 initial investment. Actual results could be materially different from the stated goals. Investors should carefully consider the risks involved before deciding to invest. As with any investment, there is a potential for profit as well as the possibility of loss.

Assets may include accounts that are not reflected in the composite.

Investment team

Performance

Annualized composite performance (%) as of March 31, 2024

  MTD QTD YTD 1 Year 3 Years 5 Years 10 Years
Global Health Care (gross) 3.18% 8.86% 8.86% 22.29% 11.33% 14.22% 11.52%
Global Health Care (net) 3.13% 8.70% 8.70% 21.55% 10.65% 13.52% 10.81%
MSCI World Health Care Index (ND) 2.36% 7.48% 7.48% 13.33% 7.85% 10.33% 9.19%

Calendar-year composite performance (%) as of March 31, 2024

  2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Global Health Care (gross) 10.20% -3.68% 20.69% 17.22% 31.65% 0.47% 16.56% -10.66% 8.77% 28.96%
Global Health Care (net) 9.53% -4.27% 19.95% 16.50% 30.85% -0.15% 15.85% -11.21% 7.97% 27.92%
MSCI World Health Care Index (ND) 3.76% -5.41% 19.80% 13.52% 23.24% 2.51% 19.80% -6.81% 6.60% 18.10%

Past performance is not a guarantee of future results. An investment in this strategy could lose value. Most recent month-end performance is preliminary. Returns are subject to change.

Periods less than one year are not annualized. Performance is stated in U.S. dollars and includes the reinvestment of dividends and interest.

Literature

Related topics

Equity Insights

Strategy

Strategy profile

Important disclosures

The Putnam Investments Global Health Care Composite (the "Composite") seeks capital appreciation by investing mainly in common stocks of midsized and large companies worldwide in the health care industries. From biotech and drugs to devices and hospitals, the strategy invests in industries that can profit from the global demand for health care products and services. Potential investments include companies that manufacture health care supplies or provide health care-related services, and companies in the research, development, production and marketing of pharmaceuticals and biotechnology products. The Composite's benchmark is the MSCI World Health Care Index (ND). Leverage is not utilized in any account in this Composite. However, derivatives (such as futures, options, forwards, and swaps) may be used for hedging and non-hedging purposes. The Composite comprises all fully discretionary accounts managed by Putnam Investments in this investment style. The Composite inception date was August 31, 1993. The Composite creation date was August 16, 2006.

The Morgan Stanley Capital International (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. Benchmarks are generally taken from published sources and may have different calculation methodologies, pricing times, and foreign exchange sources from the Composite.

Gross performance includes the deduction of transaction costs but does not include the deduction of management fees and other expenses that may be incurred in managing an investment account. A portfolio's return will be reduced by advisory and other fees. Net performance reflects the deduction of a model fee applied on a monthly basis, equal to the actual management fee incurred by a portfolio in the Composite or the highest management fee that would be charged to a prospect of the strategy, whichever is higher. The model fee may change over time. Actual advisory fees may vary among clients with the same investment strategy. The Composite includes all actual, fully discretionary accounts with substantially similar investment policies and objectives managed to the Composite's investment strategy. Benchmarks are generally taken from published sources and may have different calculation methodologies, pricing times, and/or foreign-exchange sources from the Composite. The effect of those differences is generally deemed to be immaterial. The securities holdings of the Composite strategy may differ materially from those of the index used for comparative purposes.