Putnam Capital Manager

Putnam Emerging Markets Equity Subaccount

The subaccount seeks long-term capital appreciation.

Fund description

The subaccount invests at least 80% of its assets in stocks of emerging market companies believed to have favorable investment potential. It may invest in growth and value stocks of companies of all sizes. The management team focuses on a number of factors when making investment decisions, including company valuation, financial strength, and competitive position within the industry. The team also evaluates projected future earnings and cash flow, as well as dividend yields within the context of current macroeconomic themes.

Sales story

Pursuing growth opportunities in developing economies

  • Mispriced earnings potentialWe invest across emerging markets with the philosophy that identifying high-quality companies with mispriced earnings growth can potentially deliver alpha.
  • Durable growth driversOur investment process seeks to develop a differentiated view on future company earnings through insights on durable moats that sustain a company’s drivers of growth.
  • Focused, best-ideas fundThe team seeks to smooth performance volatility by building a portfolio with emphasis on companies we believe have strong balance sheets and potential for above-average profitability.

Management team

Lipper ranking ‡ as of 02/29/24

Category: Emerging Markets Funds

  Percentile ranking Rank/Funds in category
10 yrs. 75% 47/62
1 yr. 30% 24/80
3 yrs. 65% 50/77
5 yrs. 29% 21/74

Risk Characteristics as of 02/29/24

Alpha (%) -1.81
Beta 1.01
R squared 0.91
Standard deviation (3 yrs.) 18.43

‡ 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 03/31/24

Fiscal Year End December
Asset Class Putnam Capital Manager
Subaccount Status Open to new investors
Number of issues 65
Turnover (fiscal year end) 118%
Net Assets $23M
Inception Date 01/02/97

Holdings

Taiwan Semiconductor Manufacturing 11.25%
Tencent Holdings 5.44%
Samsung Electronics 5.26%
Icici Bank 3.99%
iShares Core MSCI Emerging Markets ETF 3.95%
Grupo Financiero Banorte Sab De Cv 2.98%
Sk Hynix 2.66%
Tata Consultancy Services 2.61%
Indian Hotels 2.37%
Bank Of China 2.24%
Top 10 holdings, total: 42.76%


Top 10 holdings as of 02/29/24
1: Taiwan Semiconductor Manufacturing 11.25%
2: Tencent Holdings 5.44%
3: Samsung Electronics 5.26%
4: Icici Bank 3.99%
5: iShares Core MSCI Emerging Markets ETF 3.95%
6: Grupo Financiero Banorte Sab De Cv 2.98%
7: Sk Hynix 2.66%
8: Tata Consultancy Services 2.61%
9: Indian Hotels 2.37%
10: Bank Of China 2.24%
Holdings represent 42.76% of portfolio
Top 10 holdings as of 01/31/24
1: Taiwan Semiconductor Manufacturing 11.06%
2: Samsung Electronics 5.14%
3: Tencent Holdings 5.06%
4: Icici Bank 4.03%
5: Grupo Financiero Banorte Sab De Cv 3.03%
6: Tata Consultancy Services 2.51%
7: iShares Core MSCI Emerging Markets ETF 2.31%
8: Sk Hynix 2.30%
9: Indian Hotels 2.05%
10: Petrochina 1.95%
Holdings represent 39.44% of portfolio
Top 10 holdings as of 12/31/23
1: Taiwan Semiconductor Manufacturing 10.44%
2: Samsung Electronics 5.67%
3: Tencent Holdings 5.28%
4: Icici Bank 3.83%
5: Grupo Financiero Banorte Sab De Cv 2.95%
6: Sk Hynix 2.86%
7: Tata Consultancy Services 2.45%
8: Kei Industries 1.94%
9: Indian Hotels 1.90%
10: Bank Of China 1.76%
Holdings represent 39.08% of portfolio
Top 10 holdings as of 11/30/23
1: Taiwan Semiconductor Manufacturing 10.12%
2: Tencent Holdings 6.67%
3: Samsung Electronics 5.21%
4: Icici Bank 3.62%
5: Grupo Financiero Banorte Sab De Cv 2.91%
6: Sk Hynix 2.65%
7: Tata Consultancy Services 2.27%
8: iShares Core MSCI Emerging Markets ETF 2.05%
9: Bank Of China 1.92%
10: Indian Hotels 1.85%
Holdings represent 39.27% of portfolio


Portfolio Composition as of 02/29/24

Common stock 97.33%
Cash and net other assets 2.05%
Preferred stock 0.62%

Consider these risks before investing: International investing involves currency, economic, and political risks. Emerging-market securities carry illiquidity and volatility risks. Investments in small and/or midsize companies increase the risk of greater price fluctuations. 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. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. 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. 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. 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.

Sector weightings as of 02/29/24

Information technology 28.10%
Financials 18.89%
Consumer discretionary 17.13%
Industrials 6.20%
Communication services 5.44%
Health care 4.06%
Unclassified 3.95%
Consumer staples 3.48%
Energy 3.19%
 
Other
9.56%
Materials 3.12%
Utilities 2.93%
Cash and net other assets 2.05%
Real estate 1.46%

Country Allocation as of 02/29/24

India 22.08%
China 18.56%
Taiwan 16.03%
South Korea 10.97%
United States 5.02%
Brazil 4.50%
Mexico 4.32%
Indonesia 3.51%
Cash and net other assets 2.05%
 
Other
12.96%
Hong Kong 1.77%
Philippines 1.73%
Poland 1.50%
United Arab Emirates 1.46%
Italy 1.41%
United Kingdom 1.16%
South Africa 0.99%
Panama 0.95%
France 0.88%
Japan 0.66%
Greece 0.45%