Putnam Capital Manager

Putnam International Value Subaccount

The subaccount seeks capital growth. Current income is a secondary objective.

Fund description

The subaccount applies Putnam's value-oriented strategy of seeking undervalued stocks outside the United States. By buying mostly dividend paying stocks with relatively low valuations, the fund pursues capital growth and, secondarily, current income. The fund is positioned to benefit from the spread of corporate strategies focusing on shareholder value outside the United States.

Sales story

Benefiting from undervalued international companies experiencing positive change International companies: The fund invests in international large and midsize companies to benefit from business opportunities outside the United States.A value strategy: The fund focuses on companies whose stocks are priced below their long-term potential, and where there may be a catalyst for positive change.Building competitive portfolios: The portfolio manager uses fundamental research as the cornerstone of the investment process. This research is supported by quantitative tools and macroeconomic analysis.

Management team

Lipper ranking ‡ as of 06/30/20

Category: International Large-Cp Val Fds

  Percentile ranking Rank/Funds in category
10 yrs. 17% 2/11
1 yr. 22% 3/13
3 yrs. 29% 4/13
5 yrs. 22% 3/13

Risk Characteristics as of 06/30/20

Alpha (%) 1.04
Beta 0.93
R squared 0.96
Standard deviation (3 yrs.) 16.12

‡ Lipper is an industry research firm whose rankings are based on total return performance, vary over time, and do not reflect the effects of sales charges. Past performance is not indicative of future results.

Quick facts as of 07/31/20

Fiscal Year End December
Asset Class Putnam Capital Manager
Subaccount Status Open to new investors
Number of issues 74
Turnover (fiscal year end) 15%
Net Assets $60M
Inception Date 01/02/97

Holdings

Novartis Ag 4.13%
Vinci 3.04%
Sanofi 2.71%
Aia Group 2.70%
Siemens Ag 2.41%
Ing Groep Nv 2.35%
Nippon Telegraph Telephone Corp 2.28%
Samsung Electronics 2.24%
Vodafone Group 2.15%
Astrazeneca 2.12%
Top 10 holdings, total: 26.13%


Top 10 holdings as of 06/30/20
1: Novartis Ag 4.13%
2: Vinci 3.04%
3: Sanofi 2.71%
4: Aia Group 2.70%
5: Siemens Ag 2.41%
6: Ing Groep Nv 2.35%
7: Nippon Telegraph Telephone Corp 2.28%
8: Samsung Electronics 2.24%
9: Vodafone Group 2.15%
10: Astrazeneca 2.12%
Holdings represent 26.13% of portfolio
Top 10 holdings as of 05/31/20
1: Novartis Ag 4.20%
2: Astrazeneca 3.27%
3: Vinci 3.13%
4: Sanofi 2.65%
5: Aia Group 2.42%
6: Mitsubishi Corp 2.39%
7: Siemens Ag 2.28%
8: Vodafone Group 2.27%
9: Nippon Telegraph Telephone Corp 2.26%
10: Ing Groep Nv 2.25%
Holdings represent 27.12% of portfolio
Top 10 holdings as of 04/30/20
1: Novartis Ag 4.30%
2: Astrazeneca 3.35%
3: Vinci 2.88%
4: Aia Group 2.81%
5: Sanofi 2.77%
6: Nippon Telegraph Telephone Corp 2.37%
7: Mitsubishi Corp 2.27%
8: Samsung Electronics 2.21%
9: Vodafone Group 2.02%
10: Siemens Ag 2.02%
Holdings represent 27.00% of portfolio
Top 10 holdings as of 03/31/20
1: Novartis Ag 4.32%
2: Vinci 3.01%
3: Astrazeneca 2.96%
4: Aia Group 2.87%
5: Sanofi 2.58%
6: Nippon Telegraph Telephone Corp 2.56%
7: Mitsubishi Corp 2.34%
8: Samsung Electronics 2.16%
9: Bp 2.11%
10: Vodafone Group 2.07%
Holdings represent 26.98% of portfolio


Portfolio Composition as of 06/30/20

Common stock 98.06%
Cash and net other assets 1.94%

Consider these risks before investing: International investing involves currency, economic, and political risks. Emerging-market securities carry illiquidity and volatility risks. Because the fund currently invests, and may in the future invest, significantly in European companies, the fund is particularly susceptible to economic, political, regulatory, or other events or conditions affecting issuers in Europe. Investments in small and/or midsize companies increase the risk of greater price fluctuations. Value stocks may fail to rebound, and the market may not favor value-style investing. The value of investments in the fund’s portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general economic, political, or financial market conditions; investor sentiment and market perceptions; government actions; geopolitical events or changes; and factors related to a specific issuer, geography, industry, or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund’s portfolio holdings. From time to time, the fund may invest a significant portion of its assets in companies in one or more related industries or sectors, which would make the fund more vulnerable to adverse developments affecting those industries or sectors. Risks associated with derivatives include increased investment exposure (which may be considered leverage) and, in the case of over-the-counter instruments, the potential inability to terminate or sell derivatives positions, and the potential failure of the other party to the instrument to meet its obligations. Our investment techniques, analyses, and judgments may not produce the outcome we intend. The investments we select for the fund may not perform as well as other securities that we do not select for the fund. We, or the fund’s other service providers, may experience disruptions or operating errors that could have a negative effect on the fund. You can lose money by investing in the fund. Variable annuities are long-term investments designed for retirement purposes. Withdrawals prior to age 59 1/2 may be subject to a 10% IRS penalty.

Top Industry Sectors as of 06/30/20

Financials 26.81%
Industrials 18.70%
Health care 10.75%
Communication services 8.02%
Consumer staples 7.87%
Materials 6.03%
Consumer discretionary 5.56%
Energy 5.38%
Information technology 4.66%
 
Other
6.22%
Utilities 4.28%
Cash and net other assets 1.94%

Country Allocation as of 06/30/20

Japan 22.16%
United Kingdom 20.89%
France 13.64%
Switzerland 7.87%
Netherlands 5.99%
Australia 5.30%
Germany 4.64%
Canada 3.46%
Ireland 2.90%
 
Other
13.15%
Hong Kong 2.70%
South Korea 2.24%
Cash and net other assets 1.94%
Spain 1.35%
Taiwan 0.97%
Finland 0.94%
Italy 0.88%
Norway 0.85%
Singapore 0.82%
Sweden 0.24%
United States 0.22%