Putnam Capital Manager

Putnam Equity Income Subaccount

The subaccount seeks current income. Capital growth is a secondary objective when consistent with seeking current income.

Putnam Equity Income Subaccount

Fund description

The subaccount employs Putnam's value strategy to invest primarily in stocks of large and mid-sized companies that are undervalued and poised for positive change. The subaccount favors dividend-paying companies and is broadly diversified across market sectors. To help manage volatility and increase current income, up to 20% of the portfolio can be invested in high quality, fixed-income securities.

Sales story

A multidimensional approach that defines value on a daily basisA large-value focus: The fund focuses on large companies whose stocks are priced below their long-term potential, and where there may be a catalyst for positive change.Dividend growth: The fund places a distinct emphasis on companies that can grow their dividends and are able and willing to return cash to shareholders.A disciplined process: The portfolio managers invest using fundamental research and quantitative tools supported by strong risk controls in portfolio construction.

Management team

Lipper ranking ‡ as of 03/31/19

Category: Equity Income Funds

  Percentile ranking Rank/Funds in category
10 yrs. 17% 9/54
1 yr. 51% 41/81
3 yrs. 23% 17/74
5 yrs. 28% 18/64

Risk Characteristics as of 03/31/19

Alpha (%) 1.03
Beta 0.98
R squared 0.95
Standard deviation (3 yrs.) 10.54

Mutual funds that invest in government securities are not guaranteed. Mortgage-backed securities are subject to prepayment risk. Capital gains, if any, are taxable for federal and, in most cases, state purposes. For some investors, investment income may be subject to the federal alternative minimum tax. Income from federally exempt funds may be subject to state and local taxes. 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.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 03/31/19

Fiscal Year End December
Asset Class Putnam Capital Manager
Subaccount Status Open to new investors
Number of issues 108
Turnover (fiscal year end) 14%
Net Assets $1,393M
Inception Date 05/01/03

Holdings

Top 10 holdings as of 03/31/19

JPMorgan Chase 3.71%
Microsoft Corp 3.35%
Bank Of America Corp 3.17%
Citigroup 2.69%
Walmart 2.31%
Johnson&Johnson 2.13%
Apple 2.06%
Exxon Mobil Corp 1.84%
Northrop Grumman Corp 1.81%
BD Medical 1.81%
Top 10 holdings, total: 24.88%

Represents equity portion of portfolio.

 
Full portfolio  |  Prior top 10 holdings

Full Portfolio Holdings as of 12/31/18
JPMORGAN CHASE & CO 3.95%
MICROSOFT CORP 3.70%
BANK OF AMERICA CORP 3.13%
CITIGROUP INC 2.49%
WALMART INC 2.43%
JOHNSON & JOHNSON 2.17%
APPLE INC 1.89%
NORTHROP GRUMMAN CORP 1.85%
BECTON DICKINSON AND CO 1.81%
CONOCOPHILLIPS 1.76%
CIGNA CORP 1.72%
EXXON MOBIL CORP 1.72%
MERCK & CO. INC. 1.66%
ASSURED GUARANTY LTD 1.44%
DOWDUPONT INC 1.44%
AMGEN INC 1.43%
DANAHER CORP 1.42%
ELI LILLY & CO 1.37%
AMERICAN TOWER CORP 1.33%
AT&T INC 1.31%
KROGER CO 1.29%
UNION PACIFIC CORP 1.29%
COMCAST CORP-CLASS A 1.26%
ASTRAZENECA PLC-SPONS ADR 1.25%
CISCO SYSTEMS INC 1.25%
BP PLC 1.16%
RAYTHEON COMPANY 1.16%
PEPSICO INC 1.14%
VALERO ENERGY CORP 1.12%
EXELON CORP 1.09%
GILEAD SCIENCES INC 1.09%
KIMBERLY-CLARK CORP 1.09%
PFIZER INC 1.09%
AMERICAN ELECTRIC POWER 1.07%
NRG ENERGY INC 1.07%
WELLS FARGO & CO 1.07%
QUALCOMM INC 1.06%
AMERICAN INTERNATIONAL GROUP 1.04%
CHARTER COMMUNICATIONS INC-A 1.00%
KKR & CO INC -A 1.00%
BALL CORP 0.98%
FIDELITY NATIONAL INFO SERV 0.98%
GAMING AND LEISURE PROPERTIE 0.98%
MARATHON OIL CORP 0.97%
REGIONS FINANCIAL CORP 0.97%
TOTAL SA 0.97%
JOHNSON CONTROLS INTERNATION 0.93%
RADIAN GROUP INC 0.92%
GENERAL MOTORS CO 0.90%
HILTON WORLDWIDE HOLDINGS IN 0.88%
O'REILLY AUTOMOTIVE INC 0.88%
MOLSON COORS BREWING CO -B 0.86%
INTEL CORP 0.85%
GOLDMAN SACHS GROUP INC 0.81%
AIR PRODUCTS & CHEMICALS INC 0.80%
STATE STREET CORP 0.80%
HOME DEPOT INC 0.79%
SOUTHWEST AIRLINES CO 0.79%
ALCOA CORP 0.77%
EDISON INTERNATIONAL 0.77%
DXC TECHNOLOGY CO 0.76%
HARTFORD FINANCIAL SVCS GRP 0.76%
WALGREENS BOOTS ALLIANCE INC 0.74%
BOSTON PROPERTIES INC 0.71%
ANADARKO PETROLEUM CORP 0.69%
CAPITAL ONE FINANCIAL CORP 0.67%
APTIV PLC 0.66%
ENTERPRISE PRODUCTS PARTNERS 0.66%
HONEYWELL INTERNATIONAL INC 0.66%
VERIZON COMMUNICATIONS INC 0.65%
KINDER MORGAN INC 0.62%
BJ'S WHOLESALE CLUB HOLDINGS 0.61%
PULTEGROUP INC 0.59%
TEXAS INSTRUMENTS INC 0.57%
EOG RESOURCES INC 0.55%
NEXTERA ENERGY INC 0.55%
KEYCORP 0.53%
SCHWAB (CHARLES) CORP 0.53%
STANLEY BLACK & DECKER INC 0.50%
EMERSON ELECTRIC CO 0.49%
HALLIBURTON CO 0.49%
KRAFT HEINZ CO/THE 0.47%
MANDATORY EXCH TRUST P/P 144A 05.7500 CV PFD 0.44%
NXP SEMICONDUCTORS NV 0.42%
ENCANA CORP 0.38%
MFA FINANCIAL INC 0.33%
ON SEMICONDUCTOR CORP 0.30%
KEURIG DR PEPPER INC 0.27%
GENERAL ELECTRIC CO 0.21%
COTY INC-CL A 0.16%
SHERWIN-WILLIAMS CO/THE 0.16%
OPORTUN FIN CORP P/P SERIES H PFD 0.04%
GLOBAL FASHION GRP 0.01%
GLOBAL FASHION GRP P/P 0.01%
OPORTUN FIN CORP P/P 0.01%
OPORTUN FIN F-1 PFD CV P/P 0.01%
OPORTUN FIN G-1 PFD CV P/P 0.01%
CAD/USD 01/16/2019 CITI 0.00%
CAD/USD 01/16/2019 GSFX 0.00%
EUR/USD 03/20/2019 BANKAM 0.00%
EUR/USD 03/20/2019 GSFX 0.00%
HC BRILLANT SERVICES GMBH P/P 0.00%
NEW BIGFOOT OTHER ASSETS GMBH P/P 0.00%
NEW MIDDLE EAST OTHER ASSETS GMBH P/P 0.00%
OPORTUN FIN A-1 PFD CV P/P 0.00%
OPORTUN FIN B-1 PFD CV P/P 0.00%
OPORTUN FIN C-1 PFD CV P/P 0.00%
OPORTUN FIN D-1 PFD CV P/P 0.00%
OPORTUN FIN E-1 PFD CV P/P 0.00%
OPORTUN FIN F PFD CV P/P 0.00%
EUR/USD 03/20/2019 SSBT -0.01%
GBP/USD 03/20/2019 BCAP-FX -0.01%
GBP/USD 03/20/2019 GSFX -0.02%

Prior top 10 holdings

Top 10 holdings as of 03/31/19
1: JPMorgan Chase 3.71%
2: Microsoft Corp 3.35%
3: Bank Of America Corp 3.17%
4: Citigroup 2.69%
5: Walmart 2.31%
6: Johnson&Johnson 2.13%
7: Apple 2.06%
8: Exxon Mobil Corp 1.84%
9: Northrop Grumman Corp 1.81%
10: BD Medical 1.81%
Holdings represent 24.88% of portfolio
Top 10 holdings as of 02/28/19
1: JPMorgan Chase 3.87%
2: Bank Of America Corp 3.38%
3: Microsoft Corp 3.17%
4: Citigroup 2.80%
5: Walmart 2.37%
6: Johnson Johnson 2.10%
7: Northrop Grumman Corp 2.00%
8: Apple 1.90%
9: Becton Dickinson And 1.83%
10: Exxon Mobil Corp 1.82%
Holdings represent 25.24% of portfolio
Top 10 holdings as of 01/31/19
1: JPMorgan Chase 3.92%
2: Microsoft Corp 3.56%
3: Bank Of America Corp 3.38%
4: Citigroup 2.89%
5: Walmart 2.34%
6: Johnson Johnson 2.09%
7: Northrop Grumman Corp 1.94%
8: Becton Dickinson And 1.87%
9: Apple 1.86%
10: ConocoPhillips 1.79%
Holdings represent 25.64% of portfolio
Top 10 holdings as of 12/31/18
1: JPMorgan Chase 3.95%
2: Microsoft Corp 3.70%
3: Bank Of America Corp 3.13%
4: Citigroup 2.49%
5: Walmart 2.43%
6: Johnson & Johnson 2.17%
7: Apple 1.89%
8: Northrop Grumman Corp 1.85%
9: Becton Dickinson And 1.81%
10: ConocoPhillips 1.76%
Holdings represent 25.18% of portfolio

Portfolio Composition as of 03/31/19

Common stock 97.34%
Cash and net other assets 2.05%
Convertible preferred stock 0.61%

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

Mutual funds that invest in government securities are not guaranteed. Mortgage-backed securities are subject to prepayment risk. Capital gains, if any, are taxable for federal and, in most cases, state purposes. For some investors, investment income may be subject to the federal alternative minimum tax. Income from federally exempt funds may be subject to state and local taxes. 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.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.

Top Industry Sectors as of 03/31/19

Financials 21.16%
Health care 14.37%
Information technology 11.75%
Energy 11.26%
Consumer staples 8.83%
Industrials 8.15%
Utilities 5.62%
Consumer discretionary 4.66%
Materials 4.48%
 
Other		 9.72%
Communication services 4.35%
Real estate 3.32%
Cash and net other assets 2.05%