Growth Opportunities Fund

We use deep, thematic research to harness the growth potential of large U.S. companies

This fund received a Overall Morningstar Rating out of 1,235 funds in the Large Growth category based on total return as of 06/30/19.

Seeking durable growth

Portfolio Manager Richard Bodzy and a team of analysts look for companies across a range of sectors that offer durable long-term growth prospects. They look for high and accelerating capital returns and the ability to grow at above-market rates. They also target companies with an ownership culture — businesses whose managers act like owners and whose interests are aligned with shareholders.

Growth opportunities include:

Revenues growing faster than the market


Underappreciated value drivers


Operating momentum


Ability to deploy capital efficiently

Examining downside capture

Richard and his team analyze prior cycle downside capture — how companies have performed in earlier market declines. They use this research to help identify higher quality businesses, industry leaders, and market share gainers with a high percentage of recurring revenues.

Conducting theme-based research

Investment opportunities emerge from a wide array of themes

Richard Bodzy works with a team of analysts to develop investment themes and find broad areas of opportunity, and then narrows his focus to identify companies that he believes have fundamental strength, a competitive edge, and the potential to produce strong profits.

Trend

Problem/trend

Solution/theme

Investment opportunity

Personalized medicine

Growing demand for treatment of rare diseases and conditions

Customized approaches based on an individual's specific needs

Companies such as those specializing in gene therapy

Increased screen time

Rapidly growing use of bandwidth and demand for content

Technology that enables and supports content across multiple platforms

Hardware, internet, IT security, and software firms

We seek businesses that could become disruptors in their industries with innovative products and services, and significant growth potential.

Richard E. Bodzy, Portfolio Manager

13   years in the industry

10   years at Putnam Investments
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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.