Putnam Capital Manager

George Putnam Balanced Fund Subaccount

The subaccount seeks to provide a balanced investment composed of a well diversified portfolio of stocks and bonds which produce both capital growth and current income.

Fund description

The subaccount seeks its dual objectives of capital growth and current income by investing in a combination of value stocks and fixed-income securities. The equity portion targets stocks of large companies that are currently undervalued and undergoing positive changes. The fixed-income portion includes government, corporate, and mortgage-backed securities. The subaccount typically has a 60%-70% allocation to stocks and a 30%-40% position in bonds.

Sales story

A prudent balance of stocks and bonds A balanced approach: The fund seeks conservative growth plus income through a mix of roughly 60% stocks and 40% bonds.Seeking reduced volatility: The fund's focus on undervalued stocks and primarily high-quality bonds is designed to reduce volatility for conservative and income-oriented investors.A rigorous process: The fund's experienced portfolio managers use rigorous fundamental investment research to find opportunities and manage risk.

Management team

Lipper ranking ‡ as of 02/29/20

Category: BALANCED FUNDS

  Percentile ranking Rank/Funds in category
10 yrs. 12% 14/117
1 yr. 5% 7/165
3 yrs. 7% 9/147
5 yrs. 12% 15/131

Risk characteristics as of 02/29/20

Avg. Eff. Maturity 7.84
Avg. Eff. Duration 5.66
Avg. Coupon --
Avg. Yield to Maturity --
Alpha (%) 1.83
Beta 0.60
R squared 0.96
Standard deviation (3 yrs.) 7.99

Maturity details

0 to 1 yr. 6.24%
1 to 5 yrs. 51.57%
5 to 10 yrs. 23.35%
10 to 15 yrs. 1.41%
Over 15 yrs. 17.43%

Quality ratings

AAA 58.27%
AA 2.75%
A 15.46%
BBB 19.12%
BB 1.37%
CCC and Below 0.01%
Not Rated 3.02%

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.The use of derivatives involves additional risks, such as the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations.Although value investing targets stocks believed to be priced too low, there is no guarantee they will appreciate.

‡ 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 03/31/20

Fiscal Year End December
Asset Class Putnam Capital Manager
Subaccount Status Open to new investors
Number of issues 409
Turnover (fiscal year end) 128%
Net Assets $165M
Inception Date 05/01/98

Holdings

Microsoft 3.25%
Us Treasury N/B 02.1250 12/31/2022 2.27%
Us Treasury N/B 02.7500 08/15/2042 2.14%
Amazon 2.08%
Alphabet 2.01%
Us Treasury N/B 01.6250 10/31/2023 2.00%
Apple 1.93%
Us Treasury N/B 02.0000 02/15/2022 1.88%
Us Treasury N/B 03.0000 02/15/2047 1.44%
Us Treasury N/B 01.7500 06/30/2022 1.37%
Top 10 holdings, total: 20.37%


Top 10 holdings as of 02/29/20
1: Microsoft 3.25%
2: Us Treasury N/B 02.1250 12/31/2022 2.27%
3: Us Treasury N/B 02.7500 08/15/2042 2.14%
4: Amazon 2.08%
5: Alphabet 2.01%
6: Us Treasury N/B 01.6250 10/31/2023 2.00%
7: Apple 1.93%
8: Us Treasury N/B 02.0000 02/15/2022 1.88%
9: Us Treasury N/B 03.0000 02/15/2047 1.44%
10: Us Treasury N/B 01.7500 06/30/2022 1.37%
Holdings represent 20.37% of portfolio
Top 10 holdings as of 01/31/20
1: Microsoft 3.27%
2: Us Treasury N/B 02.1250 12/31/2022 2.15%
3: Apple 2.09%
4: Alphabet 2.01%
5: Amazon 1.99%
6: Us Treasury N/B 02.7500 08/15/2042 1.95%
7: Us Treasury N/B 01.6250 10/31/2023 1.88%
8: Us Treasury N/B 02.0000 02/15/2022 1.80%
9: Us Treasury N/B 03.0000 02/15/2047 1.40%
10: Us Treasury N/B 01.7500 06/30/2022 1.30%
Holdings represent 19.84% of portfolio
Top 10 holdings as of 12/31/19
1: Microsoft 3.03%
2: Us Treasury N/B 02.1250 12/31/2022 2.12%
3: Apple 1.98%
4: Alphabet 1.90%
5: Us Treasury N/B 01.6250 10/31/2023 1.86%
6: Us Treasury N/B 02.7500 08/15/2042 1.83%
7: Us Treasury N/B 02.0000 02/15/2022 1.79%
8: Amazon 1.75%
9: Us Treasury N/B 03.0000 02/15/2047 1.30%
10: Us Treasury N/B 01.7500 06/30/2022 1.29%
Holdings represent 18.85% of portfolio
Top 10 holdings as of 11/30/19
1: Microsoft 2.76%
2: Us Treasury N/B 02.7500 08/15/2042 1.90%
3: Us Treasury N/B 01.6250 10/31/2023 1.88%
4: Alphabet 1.87%
5: Apple 1.83%
6: Us Treasury N/B 02.0000 02/15/2022 1.81%
7: Amazon 1.73%
8: Fnma Fn30 Tba Umbs 03.5000 01/01/2050 1.65%
9: Us Treasury N/B 02.1250 12/31/2022 1.44%
10: Us Treasury N/B 01.7500 06/30/2022 1.32%
Holdings represent 18.19% of portfolio


Portfolio Composition as of 02/29/20

Common stock 57.81%
Treasury 15.96%
Corporate bonds and notes 15.41%
Agency pass-through 5.24%
Cash and net other assets 4.93%
Commercial MBS 0.52%
Municipal bonds 0.11%
Residential MBS (non-agency) 0.02%

Portfolio allocations will vary over time. The unclassified sector (where applicable) includes exchange traded funds and other securities not able to be classified by sector.

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.The use of derivatives involves additional risks, such as the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations.Although value investing targets stocks believed to be priced too low, there is no guarantee they will appreciate.

Top Industry Sectors as of 02/29/20

Information technology 21.14%
Health care 13.04%
Financials 12.53%
Consumer discretionary 10.26%
Communication services 10.25%
Industrials 9.38%
Consumer staples 7.50%
Cash and net other assets 4.93%
Utilities 3.62%
 
Other
7.35%
Energy 3.45%
Materials 2.73%
Real estate 1.17%