International Durable Equity (ADR-Only)

The strategy seeks to outperform by investing in big-moat businesses with structural growth and good corporate governance.*

Complete details, including composite calendar-year performance (%)

Q1 | 2021 Quarterly Review (PDF)

Investment approach

  • We believe companies with all three fundamental characteristics will typically exhibit margin stability, generate a higher return on capital employed, and convert a higher proportion of net income into free cash flows
  • We believe stocks of such companies offer attractive compounding effects and should outperform the broader market over time, while exhibiting lower volatility in a market correction.
  • A long time horizon is paramount to the investment process for our desired compounding to work

Benchmark index

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

AUM ($M) Strategy

0.3

AUM ($M) Composite

0.3

Inception date

4/30/17

Typical range of portfolio holdings

20–40

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


Portfolio managers

Portfolio Manager


Performance and holdings as of 3/31/21

Composite performance (%)

Annualized Gross Net Index
Q1 -0.09 -0.19 -0.08
1 year 48.67 48.07 49.36
3 year 14.97 14.51 10.39
Since inception 16.42 15.95 12.10

Past performance is not a guarantee of future results. An investment in this strategy can lose value. Returns are stated in U.S. dollars and include the reinvestment of dividends and interest. Returns less than one year are not annualized. Most recent quarter-end performance is preliminary. Returns are subject to change. Portfolio characteristics are for a representative account and are shown for illustrative purposes only. Portfolio characteristics of individual accounts managed to a model portfolio strategy may differ as a result of account size, client-imposed investment restrictions, the timing of client investments, market, economic and individual company considerations, and other factors. The inclusion of holdings information should not be interpreted as a recommendation to buy or sell or hold any security. The securities identified do not represent all the securities purchased, sold, or recommended for client accounts. It should not be assumed that an investment in the securities identified was or will be profitable. Holdings are subject to change.

Top 10 portfolio holdings (%)

Company % Industry
Prudential 5.5 Insurance
Taiwan Semiconductor 5.1 Semiconductors and semiconductor equipment
Thomson Reuters 5.1 Professional services
Alibaba 4.6 Internet and direct marketing retail
Coca-Cola HBC 4.5 Beverages
AIA Group 4.3 Insurance
Adyen 4.2 IT services
Linde 4.2 Chemicals
Zalando 4.1 Internet and direct marketing retail
CAE 4.1 Aerospace and defense
Total 45.7

Performance commentary as of 3/31/21

In the first quarter of 2021, global markets were driven by a return-to-normal scenario balanced with increased COVID-19 cases and an extreme factor shift favoring value over growth. In this environment, the Putnam International Durable Equity (ADR-only) strategy performed in line with the benchmark before accounting for fees. Sector allocation decisions and currency positioning had positive impacts on relative performance, while security selection was an overall detractor.

Top contributors included the industrials and financial sectors, where both overweight positioning and security selection were positive. Positioning detracting from performance included an underweight to the utilities sector along with weakness among security selection in the consumer discretionary and health care sectors

Performance commentary is not intended to be relied upon as a forecast or as research, or investment advice, and is not a recommendation, offer, or solicitation to buy or sell any securities or to adopt any investment strategy. It should not be assumed that an investment in any security mentioned was or will be profitable. As with any investment, there is a potential for profit as well as the possibility of loss. Past performance is no guarantee of future results.

Complete details, including composite calendar-year performance (%)

Q1 | 2021 Quarterly Review (PDF)

The MSCI All Country World Index ex USA Growth Index captures large- and mid-cap securities exhibiting overall growth style characteristics across 22 developed-market (DM) countries and 26 emerging-markets (EM) countries. You cannot invest directly in an index.

To learn more about our offerings, please call our Client Engagement Center (CEC) at 1-800-354-4000.

Model-based managed accounts programs: Putnam Investments and its affiliates, which include The Putnam Advisory Company, LLC and Putnam Investment Management, LLC (“Putnam”), is limited to providing non-discretionary investment management services through Separately Managed Account (SMA) and Unified Managed Account (UMA) programs or other third-party platforms (collectively, the “Financial Intermediary”), where Putnam generally provides ongoing investment recommendations through one or more “model” portfolios, and the Financial Intermediary, rather than Putnam, makes investment decisions and executes trades on behalf of its underlying clients. The Financial Intermediary decides in its discretion whether to make any changes to the model that Putnam recommends, and is also solely responsible for determining the suitability of the strategy and investments for each client that participates. This information is not personalized investment advice or an investment recommendation by Putnam, and is intended for use only by a Financial Intermediary in connection with its management of its own clients’ accounts. Putnam does not have investment discretion over, or place trade orders for, any portfolio or account derived from this information. Performance of any portfolio or account derived from this information may vary materially from the performance shown herein. There is no guarantee that any investment strategy illustrated will be successful or achieve any particular level of results. Information and other marketing materials created by Putnam concerning a model portfolio strategy — including holdings, performance and other characteristics — may not be indicative of a client’s actual experience from an account managed in accordance with the strategy. This material has been created by Putnam and the information included herein has not been verified by a Financial Intermediary and may materially differ from information provided by a Financial Intermediary. Putnam is not responsible for overseeing the provision of services by a Financial Intermediary and cannot assure the quality of its services.