Putnam Capital Manager

Putnam International Equity Subaccount

The subaccount seeks capital appreciation.

Fund description

Formerly Putnam International Growth Subaccount. The name change does not reflect a shift in subaccount objective or strategy.The subaccount invests in large and midsize international stocks, targeting companies with established earnings growth that are priced below their fundamental worth. The fund has no bias toward growth or value. It offers access to a broad range of investment opportunities in many markets of the world.

Sales story

Pursuing the growth potential of overseas marketsEstablished companies: The fund invests in established large and midsize companies mainly in developed markets to benefit from opportunities unfolding outside the United States.A flexible strategy: Pursuing Putnam's blend strategy, the fund can own growth- or value-style stocks to participate when either style leads international markets.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 Multi-Cp Core Fds

  Percentile ranking Rank/Funds in category
10 yrs. 11% 5/47
1 yr. 9% 7/81
3 yrs. 33% 24/72
5 yrs. 66% 46/69

Risk Characteristics as of 06/30/20

Alpha (%) -0.21
Beta 0.99
R squared 0.95
Standard deviation (3 yrs.) 15.24

‡ 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 70
Turnover (fiscal year end) 80%
Net Assets $206M
Inception Date 01/02/97

Holdings

Sony Corp 2.86%
Aia Group 2.82%
Prudential 2.80%
Roche Holding Ag 2.64%
Novartis Ag 2.64%
Astrazeneca 2.17%
Schneider Electric 2.14%
Nexi Spa 2.06%
Anglo American 2.02%
Unilever Nv 2.00%
Top 10 holdings, total: 24.15%


Top 10 holdings as of 06/30/20
1: Sony Corp 2.86%
2: Aia Group 2.82%
3: Prudential 2.80%
4: Roche Holding Ag 2.64%
5: Novartis Ag 2.64%
6: Astrazeneca 2.17%
7: Schneider Electric 2.14%
8: Nexi Spa 2.06%
9: Anglo American 2.02%
10: Unilever Nv 2.00%
Holdings represent 24.15% of portfolio
Top 10 holdings as of 05/31/20
1: Sony Corp 3.28%
2: Roche Holding Ag 2.82%
3: Novartis Ag 2.82%
4: Prudential 2.81%
5: Aia Group 2.55%
6: Unilever Nv 2.55%
7: Astrazeneca 2.42%
8: Adidas AG 2.11%
9: Schneider Electric 1.99%
10: Anglo American 1.90%
Holdings represent 25.25% of portfolio
Top 10 holdings as of 04/30/20
1: Sony Corp 3.45%
2: Prudential 3.37%
3: Aia Group 3.29%
4: Novartis Ag 3.01%
5: Astrazeneca 2.92%
6: Roche Holding Ag 2.76%
7: Unilever Nv 2.71%
8: Nintendo 2.25%
9: Crh 1.97%
10: Imperial Brands 1.96%
Holdings represent 27.69% of portfolio
Top 10 holdings as of 03/31/20
1: Novartis Ag 3.91%
2: Sony Corp 3.74%
3: Aia Group 3.62%
4: Prudential 3.13%
5: Unilever Nv 2.80%
6: Astrazeneca 2.70%
7: Nintendo 2.47%
8: Axa 2.46%
9: Samsung Electronics 2.30%
10: Hoya Corp 2.27%
Holdings represent 29.40% of portfolio


Portfolio Composition as of 06/30/20

Common stock 95.23%
Cash and net other assets 3.24%
Preferred stock 1.53%

Consider these risks before investing: International investing involves currency, economic, and political risks. Emerging-market securities carry illiquidity and volatility risks. Investments focused in a single region may be affected by common economic forces and other factors. In addition, events in any one country within the region may impact the other countries or the region as a whole. Because the fund currently, 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. European financial markets have in recent years experienced increased volatility due to concerns with some countries’ high levels of sovereign debt, budget deficits, and unemployment. Investments in small and/or midsize companies increase the risk of greater price fluctuations. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. 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. 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 16.43%
Consumer discretionary 14.12%
Health care 13.77%
Industrials 10.40%
Consumer staples 10.30%
Communication services 9.17%
Materials 9.07%
Information technology 8.50%
Cash and net other assets 3.24%
 
Other
5.00%
Utilities 2.86%
Real estate 1.26%
Energy 0.88%

Country Allocation as of 06/30/20

Japan 19.71%
United Kingdom 18.44%
Switzerland 9.95%
Germany 9.59%
France 9.35%
Netherlands 8.30%
Ireland 3.43%
Cash and net other assets 3.24%
Hong Kong 2.82%
 
Other
15.17%
China 2.13%
United States 2.09%
Italy 2.06%
Canada 2.00%
Denmark 1.62%
South Korea 1.53%
United Arab Emirates 1.51%
Taiwan 1.23%
Norway 0.60%
Sweden 0.40%