Putnam Capital Manager

Putnam Global Health Care Subaccount

The subaccount seeks capital appreciation.

Fund description

The subaccount seeks to capitalize on the strength of the health-care sector, targeting companies of all sizes. Holdings encompass an array of industries, including pharmaceuticals, health-care services, and biotechnology. The fund seeks companies that offer strong long-term growth prospects, regardless of their size.

Sales story

Investing in the health-care sectorA dynamic sector: From biotech to pharmaceuticals, the fund seeks out companies that profit from the global demand for health care.A range of companies: The fund invests worldwide in businesses at different stages of growth, from rapidly growing newer companies to established global corporations.Actively managed: Unlike passively managed ETFs, Putnam global sector funds combine rigorous fundamental research and disciplined quantitative analysis with macroeconomic views.

Management team

Risk Characteristics as of 06/30/20

Alpha (%) -0.03
Beta 1.02
R squared 0.95
Standard deviation (3 yrs.) 14.76

‡ 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 55
Turnover (fiscal year end) 86%
Net Assets $148M
Inception Date 04/30/98

Holdings

UnitedHealth Group 6.13%
Abbvie 6.00%
Johnson&Johnson 5.54%
Roche Holding Ag 5.16%
Novartis Ag 4.30%
Merck 3.93%
Astrazeneca 3.87%
Eli Lilly And 3.52%
Thermo Fisher Scientific 3.49%
Danaher Corp 3.41%
Top 10 holdings, total: 45.35%


Top 10 holdings as of 06/30/20
1: UnitedHealth Group 6.13%
2: Abbvie 6.00%
3: Johnson&Johnson 5.54%
4: Roche Holding Ag 5.16%
5: Novartis Ag 4.30%
6: Merck 3.93%
7: Astrazeneca 3.87%
8: Eli Lilly And 3.52%
9: Thermo Fisher Scientific 3.49%
10: Danaher Corp 3.41%
Holdings represent 45.35% of portfolio
Top 10 holdings as of 05/31/20
1: UnitedHealth Group 6.25%
2: Abbvie 5.82%
3: Johnson&Johnson 5.78%
4: Roche Holding Ag 5.10%
5: Novartis Ag 4.23%
6: Merck 4.04%
7: Danaher Corp 3.92%
8: Astrazeneca 3.89%
9: Thermo Fisher Scientific 3.32%
10: Ascendis Pharma A/S 3.06%
Holdings represent 45.41% of portfolio
Top 10 holdings as of 04/30/20
1: UnitedHealth Group 6.30%
2: Johnson&Johnson 5.48%
3: Roche Holding Ag 5.36%
4: Abbvie 5.13%
5: Novartis Ag 4.63%
6: Astrazeneca 4.58%
7: Merck 4.50%
8: Danaher Corp 3.38%
9: Thermo Fisher Scientific 3.34%
10: Ascendis Pharma A/S 3.13%
Holdings represent 45.83% of portfolio
Top 10 holdings as of 03/31/20
1: UnitedHealth Group 5.96%
2: Novartis Ag 5.65%
3: Roche Holding Ag 5.57%
4: Merck 5.41%
5: Johnson&Johnson 5.31%
6: Abbvie 4.91%
7: Astrazeneca 4.33%
8: Pfizer 4.30%
9: Eli Lilly 3.42%
10: Ascendis Pharma A/S 3.20%
Holdings represent 48.06% of portfolio


Portfolio Composition as of 06/30/20

Common stock 97.53%
Cash and net other assets 2.00%
Convertible preferred stock 0.47%

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. The health care industries may be affected by technological obsolescence, changes in regulatory approval policies for drugs, medical devices, or procedures, and changes in governmental and private payment systems. The fund concentrates on a limited group of industries and is non-diversified. Because the fund may invest in fewer issuers than a diversified fund, it is vulnerable to common economic forces and may result in greater losses and volatility. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. The use of short selling may result in losses if the securities appreciate in value. 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.

Top Industry Sectors as of 06/30/20

Pharmaceuticals 38.38%
Biotechnology 23.85%
Health Care Providers & Services 14.91%
Health Care Equipment & Supplies 12.55%
Life Sciences Tools & Services 7.46%
Cash and net other assets 2.00%
Health Care Technology 0.52%
Diversified Financial Services 0.33%

Country Allocation as of 06/30/20

United States 71.36%
Switzerland 11.30%
United Kingdom 5.63%
Denmark 4.99%
Japan 3.34%
Cash and net other assets 2.00%
France 0.97%
Netherlands 0.34%
Germany 0.07%