Global Technology

The strategy seeks to generate alpha through differentiated insights into companies' earnings power, by identifying critical variables of a company's business model and exploiting divergences in estimates or duration of earnings and cash flows.*

Strategy highlights

Inception date

January 31, 2009

Benchmark

MSCI World Information Technology Index (ND)

Total strategy assets

$2.2B

(as of December 2021)

Investment vehicles

  • We believe deep fundamental research focused on catalyst-driven insights allows us to identify opportunities in emerging and established technology companies.
  • The strategy focuses on global technology opportunities across the entire cap spectrum; typically, one third of assets are invested in non-U.S. stocks, and over 30% are invested in small- and mid-cap companies.
  • The team employs disciplined portfolio construction and risk management tools aimed at delivering alpha by investing in focused portfolios of approximately 25 to 35 high-conviction names.

*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 December 31, 2021

  MTD QTD 1 Year 3 Years 5 Years 10 Years
Global Technology (gross) -1.09% 2.73% 12.48% 42.40% 32.27% 23.98%
Global Technology (net) -1.16% 2.52% 11.57% 41.42% 31.41% 23.11%
MSCI World Information Technology Index (ND) 2.60% 13.24% 29.85% 40.18% 29.97% 22.04%

Calendar-year composite performance (%) as of December 31, 2021

  2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Global Technology (gross) 12.48% 72.37% 48.92% -5.60% 48.54% 13.77% 12.06% 14.98% 25.98% 14.75%
Global Technology (net) 11.57% 71.25% 48.03% -6.17% 47.65% 13.08% 11.23% 14.06% 24.97% 13.83%
MSCI World Information Technology Index (ND) 29.85% 43.78% 47.55% -2.60% 38.23% 11.45% 4.76% 16.06% 28.72% 13.30%

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  Technology  Composite  (the  “Composite”)  seeks  capital  appreciation  by  pursuing  investment  opportunities  in technology-related  companies  worldwide.  The  strategy  is  fundamental  and  has  bottom-up,  research  intensive  approach  focused  on  opportunities  across  technology,  media, communications, information services and online payment and processing industries. Accounts in the Composite will invest mainly in common stocks (growth or value stocks or both) of  large  and  midsize  companies  worldwide  (including  emerging  markets)  concentrating  in  the  technology  industries.  The  Composite’s  benchmark  is  the  MSCI  World  Information Technology Index (ND). Leverage is not utilized in any account in this Composite. However, derivatives (including the use of “short” derivatives), such as futures, options, forwards, and  swap,  may  be  used  for  hedging  or  non-hedging  purposes.  The  Composite  includes  all  fully  discretionary  accounts  managed  by  Putnam  in  this  investment  style,  permitting emerging markets investments. The Composite inception date was January 31, 2009. The Composite creation date was February 10, 2009.

The MSCI World Information Technology Index (ND) is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed markets in the information technology sector.

Composites may include portfolios with certain existing investment restrictions that the Firm believes do not materially impact the 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 may differ materially from those of the index used for comparative purposes. Composites and benchmarks include the reinvestment of dividends and other earnings. Indexes are unmanaged and do not incur expenses. You cannot invest directly in an index. Gross-of-fee returns do 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-of-fee returns are calculated using a model fee. For the applicable time periods, net-of-fees returns reflect either the deduction of the highest management fee that is paid by a portfolio in the Composite during the performance period, applied on a monthly basis, or the deduction of the highest applicable management fee in effect during the performance period that would be charged based on the fee schedule appropriate to this mandate, without the benefit of breakpoints, applied on a monthly basis, whichever is higher. Net-of-fee calculation methodology may change over time. Actual investment advisory fees incurred by clients are typically negotiated on an individual basis and may vary depending upon, among other things, the applicable fee schedule and portfolio size. Our standard fee schedules are available upon request.