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 10/31/18

Alpha (%) -4.19
Beta 1.06
R squared 0.93
Standard deviation (3 yrs.) 12.32

The fund concentrates its investments in one region or in one sector and involves more risk than a fund that invests more broadly. 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.

Growth investing targets companies with above-average earnings that may be subject to price volatility if earnings expectations are not met.

‡ 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 10/31/18

Fiscal Year End December
Asset Class Putnam Capital Manager
Subaccount Status Open to new investors
Number of issues 51
Turnover (fiscal year end) 60%
Net Assets $135M
Inception Date 05/01/98

Holdings

Top 10 holdings as of 10/31/18

UnitedHealth Group 7.89%
Danaher Corp 6.81%
Becton Dickinson And 6.80%
Merck 5.33%
Astrazeneca 5.21%
Novartis Ag 4.95%
Jazz Pharmaceuticals 4.15%
Boston Scientific Corp 3.96%
Vertex Pharmaceuticals 3.91%
Bayer Ag 3.36%
Top 10 holdings, total: 52.37%

Equity Holdings as of 09/30/18

UNITEDHEALTH GROUP INC 7.44%
BECTON DICKINSON AND CO 7.14%
DANAHER CORP 6.70%
ASTRAZENECA PLC 4.90%
NOVARTIS AG-REG 4.50%
BOSTON SCIENTIFIC CORP 4.36%
VERTEX PHARMACEUTICALS INC 4.12%
JAZZ PHARMACEUTICALS PLC 4.07%
MERCK & CO. INC. 3.79%
BAYER AG-REG 3.60%
BIOGEN INC 2.98%
ROCHE HOLDING AG-GENUSSCHEIN 2.79%
JOHNSON & JOHNSON 2.75%
INTUITIVE SURGICAL INC 2.72%
AMGEN INC 2.59%
ALEXION PHARMACEUTICALS INC 2.51%
BRISTOL-MYERS SQUIBB CO 2.47%
PFIZER INC 2.31%
CHUGAI PHARMACEUTICAL CO LTD 2.02%
BAXTER INTERNATIONAL INC 1.89%
CIGNA CORP 1.60%
GILEAD SCIENCES INC 1.53%
FRESENIUS SE & CO KGAA 1.41%
HOYA CORP 1.32%
MEDICINES COMPANY 1.32%
COOPER COS INC/THE 1.29%
METTLER-TOLEDO INTERNATIONAL 1.29%
GLAXOSMITHKLINE PLC 1.28%
PENUMBRA INC 1.23%
CLINIGEN GROUP PLC 1.08%
CLOVIS ONCOLOGY INC 0.79%
BIO-RAD LABORATORIES-A 0.75%
GRIFOLS SA-ADR 0.74%
SERVICE CORP INTERNATIONAL 0.64%
NIPPON SHINYAKU CO LTD 0.61%
ATARA BIOTHERAPEUTICS INC 0.56%
ANAPTYSBIO INC 0.53%
ASCENDIS PHARMA A/S - ADR 0.53%
CHINA BIOLOGIC PRODUCTS HOLD 0.52%
GENMARK DIAGNOSTICS INC 0.52%
WALGREENS BOOTS ALLIANCE INC 0.51%
BIOMARIN PHARMACEUTICAL INC 0.49%
SIEMENS HEALTH 0.46%
MOMENTA PHARMACEUTICALS INC 0.43%
HTG MOLECULAR DIAGNOSTICS 0.33%
FEDERAL STREET ACQ � AGILITI 0.26%
FEDERAL STREET ACQUISITION 0.26%
ASPEN PHARMACARE HOLDINGS LT 0.19%
ZUR ROSE GROUP AG 0.17%
FENNEC PHARMACEUTICALS INC 0.13%
SINOPHARM GROUP CO-H 0.11%
NEURALSTEM INC SERIES K COMMON STOCK PURCHASE WARRANT 0.00%

Full Portfolio Holdings as of 09/30/18

UNITEDHEALTH GROUP INC 7.44%
BECTON DICKINSON AND CO 7.14%
DANAHER CORP 6.70%
ASTRAZENECA PLC 4.90%
NOVARTIS AG-REG 4.50%
BOSTON SCIENTIFIC CORP 4.36%
VERTEX PHARMACEUTICALS INC 4.12%
JAZZ PHARMACEUTICALS PLC 4.07%
MERCK & CO. INC. 3.79%
BAYER AG-REG 3.60%
BIOGEN INC 2.98%
ROCHE HOLDING AG-GENUSSCHEIN 2.79%
JOHNSON & JOHNSON 2.75%
INTUITIVE SURGICAL INC 2.72%
AMGEN INC 2.59%
ALEXION PHARMACEUTICALS INC 2.51%
BRISTOL-MYERS SQUIBB CO 2.47%
PFIZER INC 2.31%
CHUGAI PHARMACEUTICAL CO LTD 2.02%
BAXTER INTERNATIONAL INC 1.89%
CIGNA CORP 1.60%
GILEAD SCIENCES INC 1.53%
FRESENIUS SE & CO KGAA 1.41%
HOYA CORP 1.32%
MEDICINES COMPANY 1.32%
COOPER COS INC/THE 1.29%
METTLER-TOLEDO INTERNATIONAL 1.29%
GLAXOSMITHKLINE PLC 1.28%
PENUMBRA INC 1.23%
CLINIGEN GROUP PLC 1.08%
CLOVIS ONCOLOGY INC 0.79%
BIO-RAD LABORATORIES-A 0.75%
GRIFOLS SA-ADR 0.74%
SERVICE CORP INTERNATIONAL 0.64%
NIPPON SHINYAKU CO LTD 0.61%
ATARA BIOTHERAPEUTICS INC 0.56%
ANAPTYSBIO INC 0.53%
ASCENDIS PHARMA A/S - ADR 0.53%
CHINA BIOLOGIC PRODUCTS HOLD 0.52%
GENMARK DIAGNOSTICS INC 0.52%
WALGREENS BOOTS ALLIANCE INC 0.51%
BIOMARIN PHARMACEUTICAL INC 0.49%
SIEMENS HEALTH 0.46%
MOMENTA PHARMACEUTICALS INC 0.43%
HTG MOLECULAR DIAGNOSTICS 0.33%
FEDERAL STREET ACQ � AGILITI 0.26%
FEDERAL STREET ACQUISITION 0.26%
ASPEN PHARMACARE HOLDINGS LT 0.19%
ZUR ROSE GROUP AG 0.17%
FENNEC PHARMACEUTICALS INC 0.13%
SINOPHARM GROUP CO-H 0.11%
EUR/USD 12/19/2018 BANKAM 0.02%
CHF/USD 12/19/2018 JPMCB 0.01%
DKK/USD 12/19/2018 CITI 0.01%
JPY/USD 11/19/2018 CSI-FX 0.01%
AUD/USD 10/17/2018 JPMCB 0.00%
INDIAN RUPEE CALL ACCOUNT 0.00%
NEURALSTEM INC SERIES K COMMON STOCK PURCHASE WARRANT 0.00%
POUND STERLING CALL ACCOUNT 0.00%

Prior top 10 holdings

Top 10 holdings as of 10/31/18
1: UnitedHealth Group 7.89%
2: Danaher Corp 6.81%
3: Becton Dickinson And 6.80%
4: Merck 5.33%
5: Astrazeneca 5.21%
6: Novartis Ag 4.95%
7: Jazz Pharmaceuticals 4.15%
8: Boston Scientific Corp 3.96%
9: Vertex Pharmaceuticals 3.91%
10: Bayer Ag 3.36%
Holdings represent 52.37% of portfolio
Top 10 holdings as of 09/30/18
1: UnitedHealth Group 7.44%
2: Becton Dickinson And 7.14%
3: Danaher Corp 6.70%
4: Astrazeneca 4.90%
5: Novartis Ag 4.50%
6: Boston Scientific Corp 4.36%
7: Vertex Pharmaceuticals 4.12%
8: Jazz Pharmaceuticals 4.07%
9: Merck 3.79%
10: Bayer Ag 3.60%
Holdings represent 50.62% of portfolio
Top 10 holdings as of 08/31/18
1: UnitedHealth Group 7.58%
2: Becton Dickinson And 7.23%
3: Danaher Corp 6.45%
4: Vertex Pharmaceuticals 5.17%
5: Jazz Pharmaceuticals 4.90%
6: Astrazeneca 4.78%
7: Novartis Ag 4.38%
8: Boston Scientific Corp 4.06%
9: Bayer Ag 3.82%
10: Merck 3.70%
Holdings represent 52.07% of portfolio
Top 10 holdings as of 07/31/18
1: UnitedHealth Group 7.18%
2: Becton Dickinson and Co 6.94%
3: Danaher Corp 6.41%
4: Vertex Pharmaceuticals 5.25%
5: Jazz Pharmaceuticals 4.98%
6: Astrazeneca 4.92%
7: Bayer Ag 4.58%
8: Novartis Ag 4.46%
9: Boston Scientific Corp 3.85%
10: Merck 3.56%
Holdings represent 52.13% of portfolio

Portfolio Composition as of 10/31/18

Common stock 96.93%
Cash and net other assets 3.07%

Portfolio allocations vary over time. The fund concentrates its investments in one region or in one sector and involves more risk than a fund that invests more broadly. 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.

Growth investing targets companies with above-average earnings that may be subject to price volatility if earnings expectations are not met.

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.

Top Industry Sectors as of 10/31/18

Pharmaceuticals 37.98%
Health Care Equipment & Supplies 26.34%
Biotechnology 15.55%
Health Care Providers & Services 11.10%
Life Sciences Tools & Services 3.71%
Cash and net other assets 3.07%
Food & Staples Retailing 0.77%
Diversified Consumer Services 0.65%
Diversified Financial Services 0.56%
 
Other
0.27%
Health Care Technology 0.27%

Country Allocation as of 10/31/18

United States 69.84%
Switzerland 8.14%
United Kingdom 7.76%
Germany 5.68%
Japan 3.93%
Cash and net other assets 3.07%
Spain 0.76%
Denmark 0.52%
South Africa 0.19%
 
Other
0.11%
China 0.11%