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: Amazon’s influence
By 2040, U.S. e-commerce retail sales could well surpass brick-and-mortar store sales. The influence of e-commerce is often referred to as “the Amazon effect” — the pressure placed on traditional retailers from online competition. Amazon’s platform has caused disruption and share loss for legacy retailers — a trend that we expect to continue well into the future.
As Amazon continues disrupting business models and industries, we are working to find companies with niche products or services that give them a competitive edge.
STOCK: Sherwin-Williams (SHW)
In the context of Amazon’s influence, we look for retailers with differentiated offerings that do not translate well to an e-commerce model. For example, those with products that are too heavy, products that need frequent and fast deliveries or returns, or services that are difficult to replicate in a digital setting.
- Sherwin Williams’s largest segment, The Americas Group, is the leading paint retailer serving U.S. professional paint contractors. It also sells direct to consumers through its 4,000-store network and some large retail partners.
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.
Get to know Putnam Growth Opportunities Fund
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.
The Morningstar Rating™ 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 ten-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36 to 59 months of total returns, 60% five-year rating/40% three-year rating for 60 to 119 months of total returns, and 50% ten-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the ten-year overall star rating formula seems to give the most weight to the ten-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings do not take into account the effects of sales charges and loads.
More in: Equity