International Growth Equity

The strategy seeks to outperform the MSCI EAFE Growth Index over a full market cycle, by investing in international large-, mid-, and small-cap growth stocks that have strong growth characteristics and offer attractive valuations.*

Strategy highlights

Inception date

March 31, 1995

Benchmark

MSCI EAFE Growth Index (ND)
MSCI All Country World Index ex USA Growth (ND)

Total strategy assets

$259.3M

(as of February 2020)

  • Targets international companies with sustainable above-average earnings growth potential
  • A disciplined investment process with fundamental stock selection supported by quantitative tools and macroeconomic analysis
  • Diverse holdings seek to include large companies that dominate their industries and midsize companies that are emerging leaders with strong potential

*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. See the composite report for a summary of risk considerations. 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 February 29, 2020

  MTD QTD YTD 1 Year 3 Years 5 Years 10 Years
International Growth Equity (gross) -6.91% -8.08% -8.08% 4.96% 7.90% 3.80% 6.37%
International Growth Equity (net) -6.97% -8.22% -8.22% 4.01% 6.92% 2.86% 5.41%
MSCI EAFE Growth Index (ND) -8.63% -9.15% -9.15% 5.52% 7.30% 4.24% 6.39%
MSCI All Country World Index ex USA Growth (ND) -7.30% -8.19% -8.19% 5.79% 7.57% 4.28% 5.83%

Calendar-year composite performance (%) as of February 29, 2020

  2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
International Growth Equity (gross) 26.12% -17.13% 37.12% -5.32% 2.65% -4.57% 24.17% 22.78% -15.78% 14.14%
International Growth Equity (net) 24.98% -17.88% 35.88% -6.18% 1.72% -5.43% 23.05% 21.67% -16.54% 13.11%
MSCI EAFE Growth Index (ND) 27.90% -12.83% 28.86% -3.04% 4.09% -4.43% 22.55% 16.86% -12.11% 12.25%
MSCI All Country World Index ex USA Growth (ND) 27.34% -14.43% 32.01% 0.12% -1.25% -2.65% 15.49% 16.67% -14.21% 14.45%

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. Please refer to the composite report and disclosures below for additional important information regarding performance disclosures and investments risks.

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

Putnam Equity Outlook

Important disclosures

The Putnam Investments International Growth Equity Composite (the "Composite") seeks to outperform the MSCI EAFE Growth Index  over a full market cycle, by investing in international large-, mid-, and small-cap growth stocks that have strong growth characteristics and offer attractive valuations. The strategy targets international companies with sustainable above-average earnings growth potential and uses a disciplined investment process with fundamental stock selection supported by quantitative tools and macroeconomic analysis. Accounts in the Composite will invest in large companies that dominate their industries and midsize companies that are emerging leaders with strong potential. The Composite's primary benchmark is the MSCI EAFE Growth Index. The secondary benchmark is the MSCI All Country World ex-USA Growth Index. The Composite may include accounts with different but largely similar benchmarks. Leverage is not utilized in any account in this Composite. However, derivatives (including futures, exchange traded or OTC options, forwards, and swaps) may be used for hedging or non-hedging purposes. The Composite comprises all fully discretionary accounts with a currency overlay component managed by Putnam Investments in this investment style. The Composite creation date was November 7, 2007. The Composite inception date was March 31, 1995. Effective December 20, 2019, there was a portfolio manager change for this strategy.

The Composite's primary benchmark is the MSCI EAFE Growth Index. The secondary benchmark is the MSCI All Country World ex-USA Growth Index. The Morgan Stanley Capital International (MSCI) EAFE Growth Index generally represents approximately 50% of the free float-adjusted market capitalization of the MSCI EAFE Index and consists of those securities classified by MSCI as most representing the growth style. The MSCI All Country World ex-USA Growth Index captures large and mid cap securities exhibiting overall growth style characteristics across 22 Developed Markets countries and 23 Emerging Markets countries.

 

 

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.