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 07/31/19

Alpha (%) -1.56
Beta 1.02
R squared 0.94
Standard deviation (3 yrs.) 13.01

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 07/31/19

Fiscal Year End December
Asset Class Putnam Capital Manager
Subaccount Status Open to new investors
Number of issues 45
Turnover (fiscal year end) 54%
Net Assets $133M
Inception Date 05/01/98

Holdings

Top 10 holdings as of 07/31/19

UnitedHealth Group 8.27%
Merck 7.28%
Novartis Ag 6.40%
Johnson&Johnson 4.89%
Danaher Corp 4.76%
Astrazeneca 4.37%
Vertex Pharmaceuticals 4.17%
Pfizer 3.86%
Roche Holding Ag 3.72%
Eli Lilly 3.43%
Top 10 holdings, total: 51.15%

Full Portfolio Holdings as of 06/30/19

UNITEDHEALTH GROUP INC 7.92%
MERCK & CO. INC. 7.67%
NOVARTIS AG-REG 6.23%
DANAHER CORP 5.82%
JOHNSON & JOHNSON 5.10%
PFIZER INC 4.20%
ASTRAZENECA PLC 4.06%
ELI LILLY & CO 3.86%
ROCHE HOLDING AG-GENUSSCHEIN 3.81%
VERTEX PHARMACEUTICALS INC 3.58%
MEDICINES COMPANY 2.97%
BOSTON SCIENTIFIC CORP 2.91%
THERMO FISHER SCIENTIFIC INC 2.79%
AMGEN INC 2.73%
ABBVIE INC 2.54%
INTUITIVE SURGICAL INC 2.16%
GLAXOSMITHKLINE PLC 1.92%
ALLERGAN PLC 1.75%
ABBOTT LABORATORIES 1.71%
NOVO NORDISK A/S-B 1.69%
ASCENDIS PHARMA A/S - ADR 1.67%
CIGNA CORP 1.66%
METTLER-TOLEDO INTERNATIONAL 1.54%
BRISTOL-MYERS SQUIBB CO 1.43%
BAXTER INTERNATIONAL INC 1.37%
CSL LTD 1.32%
SANOFI 1.14%
MEDTRONIC PLC 1.06%
TAKEDA PHARMACEUTICAL CO LTD 1.03%
DAIICHI SANKYO CO LTD 0.98%
IDEXX LABORATORIES INC 0.97%
ORCHARD THERAPEUTICS PLC 0.92%
ANTHEM INC 0.89%
EDWARDS LIFESCIENCES CORP 0.87%
BECTON DICKINSON AND CO 0.80%
IQVIA HOLDINGS INC 0.78%
ALCON INC 0.76%
LONZA GROUP AG-REG 0.75%
DAVITA INC 0.72%
HUMANA INC 0.70%
FRESENIUS SE & CO KGAA 0.53%
MOMENTA PHARMACEUTICALS INC 0.50%
ALNYLAM PHARMACEUTICALS INC 0.42%
BLUEPRINT MEDICINES CORP 0.27%
IRONWOOD PHARMACEUTICALS INC 0.27%
ICU MEDICAL INC 0.20%
JPY/USD 08/21/2019 GSFX 0.10%
ADAPTIVE BIOTECHNOLOGIES 0.09%
TREASURY BILL 00.0000 07/25/2019 0.09%
TREASURY BILL 00.0000 07/18/2019 0.08%
FENNEC PHARMACEUTICALS INC 0.06%
EUR/USD 09/18/2019 BANKAM 0.06%
JPY/USD 08/21/2019 CSI-FX 0.02%
CAD/USD 07/17/2019 CITI 0.00%
ILS/USD 07/17/2019 SSBT 0.00%
EUR/USD 09/18/2019 HSBCB 0.00%
NEURALSTEM INC SERIES K COMMON STOCK PURCHASE WARRANT 0.00%
CHF/USD 09/18/2019 BCAP-FX -0.01%
GBP/USD 09/18/2019 BCAP-FX -0.01%
AUD/USD 07/17/2019 JPMCB -0.01%
DKK/USD 09/18/2019 CITI -0.01%
CHF/USD 09/18/2019 JPMCB -0.04%

Prior top 10 holdings

Top 10 holdings as of 07/31/19
1: UnitedHealth Group 8.27%
2: Merck 7.28%
3: Novartis Ag 6.40%
4: Johnson&Johnson 4.89%
5: Danaher Corp 4.76%
6: Astrazeneca 4.37%
7: Vertex Pharmaceuticals 4.17%
8: Pfizer 3.86%
9: Roche Holding Ag 3.72%
10: Eli Lilly 3.43%
Holdings represent 51.15% of portfolio
Top 10 holdings as of 06/30/19
1: UnitedHealth Group 7.92%
2: Merck 7.67%
3: Novartis Ag 6.23%
4: Danaher Corp 5.83%
5: Johnson & Johnson 5.10%
6: Pfizer 4.20%
7: Astrazeneca 4.06%
8: Eli Lilly 3.86%
9: Roche Holding Ag 3.81%
10: Vertex Pharmaceuticals 3.58%
Holdings represent 52.26% of portfolio
Top 10 holdings as of 05/31/19
1: UnitedHealth Group 9.24%
2: Merck 8.33%
3: Danaher Corp 6.27%
4: Novartis Ag 6.16%
5: Johnson&Johnson 5.05%
6: Pfizer 4.24%
7: Eli Lilly 4.15%
8: Roche Holding Ag 4.15%
9: Astrazeneca 3.67%
10: Vertex Pharmaceuticals 3.13%
Holdings represent 54.39% of portfolio
Top 10 holdings as of 04/30/19
1: UnitedHealth Group 9.61%
2: Merck 8.13%
3: Danaher Corp 6.83%
4: Novartis Ag 5.75%
5: Johnson Johnson 5.34%
6: Eli Lilly 4.11%
7: Roche Holding Ag 4.10%
8: Pfizer 4.07%
9: Astrazeneca 3.64%
10: Intuitive Surgical 3.14%
Holdings represent 54.72% of portfolio

Portfolio Composition as of 07/31/19

Common stock 97.81%
Cash and net other assets 2.19%

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 07/31/19

Pharmaceuticals 44.06%
Biotechnology 17.97%
Health Care Equipment & Supplies 17.88%
Health Care Providers & Services 12.47%
Life Sciences Tools & Services 5.43%
Cash and net other assets 2.19%

Country Allocation as of 07/31/19

United States 70.79%
Switzerland 11.62%
United Kingdom 7.34%
Denmark 3.35%
Cash and net other assets 2.19%
Japan 2.19%
Australia 1.40%
France 1.12%