Putnam Hartford Capital Manager

Putnam Equity Income Subaccount

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

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

Seeking to harness the power of stock dividends Dividend-paying companies: Dividends offer evidence of a company's commitment to creating shareholder value and are typically paid by more established companies.A 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.A rigorous process: The fund's experienced manager combines quantitative research with rigorous fundamental investment research to find opportunities and manage risk.

Management team

Lipper ranking ‡ as of 07/31/18

Category: Equity Income Funds

  Percentile ranking Rank/Funds in category
10 yrs. 4% 2/53
1 yr. 4% 3/75
3 yrs. 48% 35/73
5 yrs. 19% 12/63

Risk Characteristics as of 07/31/18

Alpha (%) 1.03
Beta 0.96
R squared 0.96
Standard deviation (3 yrs.) 10.10

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 07/31/18

Fiscal Year End December
Asset Class Putnam Hartford Capital Manager
Subaccount Status Open to new investors
Number of issues 107
Turnover (fiscal year end) 12%
Net Assets $1,541M
Inception Date 05/01/03

Holdings

Top 10 holdings as of 07/31/18

JPMorgan Chase 4.11%
Microsoft Corp 3.67%
Bank Of America Corp 3.47%
Citigroup 3.04%
Northrop Grumman Corp 2.22%
Walmart 2.06%
Apple 2.01%
Johnson Johnson 1.97%
ConocoPhillips 1.95%
Exxon Mobil Corp 1.81%
Top 10 holdings, total: 26.31%

Represents equity portion of portfolio.

Equity Holdings as of 06/30/18

JPMORGAN CHASE & CO 3.86%
MICROSOFT CORP 3.53%
BANK OF AMERICA CORP 3.28%
CITIGROUP INC 2.93%
NORTHROP GRUMMAN CORP 2.36%
WALMART INC 2.05%
APPLE INC 2.03%
CONOCOPHILLIPS 1.95%
EXXON MOBIL CORP 1.90%
JOHNSON & JOHNSON 1.87%
MARATHON OIL CORP 1.86%
BECTON DICKINSON AND CO 1.76%
DOWDUPONT INC 1.62%
VALERO ENERGY CORP 1.48%
AT&T INC 1.34%
RAYTHEON COMPANY 1.34%
AMERICAN INTERNATIONAL GROUP 1.28%
CIGNA CORP 1.28%
AMGEN INC 1.24%
DANAHER CORP 1.24%
ALCOA CORP 1.23%
ASSURED GUARANTY LTD 1.22%
KROGER CO 1.22%
UNION PACIFIC CORP 1.21%
MERCK & CO. INC. 1.20%
REGIONS FINANCIAL CORP 1.18%
WELLS FARGO & CO 1.18%
KKR & CO LP 1.15%
CISCO SYSTEMS INC 1.13%
DR PEPPER SNAPPLE GROUP INC 1.13%
GILEAD SCIENCES INC 1.13%
AMERICAN TOWER CORP 1.11%
COMCAST CORP-CLASS A 1.11%
EOG RESOURCES INC 1.09%
STATE STREET CORP 1.09%
O'REILLY AUTOMOTIVE INC 1.06%
ANADARKO PETROLEUM CORP 1.05%
ASTRAZENECA PLC-SPONS ADR 1.05%
DXC TECHNOLOGY CO 1.04%
PEPSICO INC 1.02%
TOTAL SA 1.02%
GAMING AND LEISURE PROPERTIE 1.00%
GOLDMAN SACHS GROUP INC 0.99%
GENERAL MOTORS CO 0.97%
JOHNSON CONTROLS INTERNATION 0.96%
MOLSON COORS BREWING CO -B 0.95%
EXELON CORP 0.94%
CHARTER COMMUNICATIONS INC-A 0.93%
FIDELITY NATIONAL INFO SERV 0.93%
KIMBERLY-CLARK CORP 0.93%
ELI LILLY & CO 0.92%
APTIV PLC 0.89%
HILTON WORLDWIDE HOLDINGS IN 0.88%
RADIAN GROUP INC 0.83%
HOME DEPOT INC 0.82%
INTEL CORP 0.82%
PFIZER INC 0.82%
HARTFORD FINANCIAL SVCS GRP 0.79%
SOUTHWEST AIRLINES CO 0.79%
EDISON INTERNATIONAL 0.78%
NRG ENERGY INC 0.76%
AIR PRODUCTS & CHEMICALS INC 0.72%
HALLIBURTON CO 0.72%
BOSTON PROPERTIES INC 0.71%
CAPITAL ONE FINANCIAL CORP 0.70%
QUALCOMM INC 0.68%
ENTERPRISE PRODUCTS PARTNERS 0.67%
KEYCORP 0.66%
SUNCOR ENERGY INC 0.66%
HONEYWELL INTERNATIONAL INC 0.65%
KRAFT HEINZ CO/THE 0.64%
TEXAS INSTRUMENTS INC 0.62%
KINDER MORGAN INC 0.61%
AMERICAN ELECTRIC POWER 0.59%
BALL CORP 0.57%
SCHWAB (CHARLES) CORP 0.56%
NXP SEMICONDUCTORS NV 0.54%
VERIZON COMMUNICATIONS INC 0.54%
MANDATORY EXCH TRUST P/P 144A 05.7500 CV PFD 0.52%
PULTEGROUP INC 0.50%
EMERSON ELECTRIC CO 0.49%
NEXTERA ENERGY INC 0.49%
P G & E CORP 0.44%
WALGREENS BOOTS ALLIANCE INC 0.41%
BJ'S WHOLESALE CLUB HOLDINGS 0.35%
ON SEMICONDUCTOR CORP 0.35%
PIONEER NAT RES CO 0.35%
CF INDUSTRIES HOLDINGS INC 0.32%
GENERAL ELECTRIC CO 0.32%
MFA FINANCIAL INC 0.32%
COTY INC-CL A 0.30%
INVESCO LTD 0.30%
SEALED AIR CORP 0.28%
DELPHI TECHNOLOGIES PLC 0.14%
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%
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%

Full Portfolio Holdings as of 06/30/18

JPMORGAN CHASE & CO 3.86%
MICROSOFT CORP 3.53%
BANK OF AMERICA CORP 3.28%
CITIGROUP INC 2.93%
NORTHROP GRUMMAN CORP 2.36%
WALMART INC 2.05%
APPLE INC 2.03%
CONOCOPHILLIPS 1.95%
EXXON MOBIL CORP 1.90%
JOHNSON & JOHNSON 1.87%
MARATHON OIL CORP 1.86%
BECTON DICKINSON AND CO 1.76%
DOWDUPONT INC 1.62%
VALERO ENERGY CORP 1.48%
AT&T INC 1.34%
RAYTHEON COMPANY 1.34%
AMERICAN INTERNATIONAL GROUP 1.28%
CIGNA CORP 1.28%
AMGEN INC 1.24%
DANAHER CORP 1.24%
ALCOA CORP 1.23%
ASSURED GUARANTY LTD 1.22%
KROGER CO 1.22%
UNION PACIFIC CORP 1.21%
MERCK & CO. INC. 1.20%
REGIONS FINANCIAL CORP 1.18%
WELLS FARGO & CO 1.18%
KKR & CO LP 1.15%
CISCO SYSTEMS INC 1.13%
DR PEPPER SNAPPLE GROUP INC 1.13%
GILEAD SCIENCES INC 1.13%
AMERICAN TOWER CORP 1.11%
COMCAST CORP-CLASS A 1.11%
EOG RESOURCES INC 1.09%
STATE STREET CORP 1.09%
O'REILLY AUTOMOTIVE INC 1.06%
ANADARKO PETROLEUM CORP 1.05%
ASTRAZENECA PLC-SPONS ADR 1.05%
DXC TECHNOLOGY CO 1.04%
PEPSICO INC 1.02%
TOTAL SA 1.02%
GAMING AND LEISURE PROPERTIE 1.00%
GOLDMAN SACHS GROUP INC 0.99%
GENERAL MOTORS CO 0.97%
JOHNSON CONTROLS INTERNATION 0.96%
MOLSON COORS BREWING CO -B 0.95%
EXELON CORP 0.94%
CHARTER COMMUNICATIONS INC-A 0.93%
FIDELITY NATIONAL INFO SERV 0.93%
KIMBERLY-CLARK CORP 0.93%
ELI LILLY & CO 0.92%
APTIV PLC 0.89%
HILTON WORLDWIDE HOLDINGS IN 0.88%
RADIAN GROUP INC 0.83%
HOME DEPOT INC 0.82%
INTEL CORP 0.82%
PFIZER INC 0.82%
HARTFORD FINANCIAL SVCS GRP 0.79%
SOUTHWEST AIRLINES CO 0.79%
EDISON INTERNATIONAL 0.78%
NRG ENERGY INC 0.76%
AIR PRODUCTS & CHEMICALS INC 0.72%
HALLIBURTON CO 0.72%
BOSTON PROPERTIES INC 0.71%
CAPITAL ONE FINANCIAL CORP 0.70%
QUALCOMM INC 0.68%
ENTERPRISE PRODUCTS PARTNERS 0.67%
KEYCORP 0.66%
SUNCOR ENERGY INC 0.66%
HONEYWELL INTERNATIONAL INC 0.65%
KRAFT HEINZ CO/THE 0.64%
TEXAS INSTRUMENTS INC 0.62%
KINDER MORGAN INC 0.61%
AMERICAN ELECTRIC POWER 0.59%
BALL CORP 0.57%
SCHWAB (CHARLES) CORP 0.56%
NXP SEMICONDUCTORS NV 0.54%
VERIZON COMMUNICATIONS INC 0.54%
MANDATORY EXCH TRUST P/P 144A 05.7500 CV PFD 0.52%
PULTEGROUP INC 0.50%
EMERSON ELECTRIC CO 0.49%
NEXTERA ENERGY INC 0.49%
P G & E CORP 0.44%
WALGREENS BOOTS ALLIANCE INC 0.41%
BJ'S WHOLESALE CLUB HOLDINGS 0.35%
ON SEMICONDUCTOR CORP 0.35%
PIONEER NAT RES CO 0.35%
CF INDUSTRIES HOLDINGS INC 0.32%
GENERAL ELECTRIC CO 0.32%
MFA FINANCIAL INC 0.32%
COTY INC-CL A 0.30%
INVESCO LTD 0.30%
SEALED AIR CORP 0.28%
DELPHI TECHNOLOGIES PLC 0.14%
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%
THE EURO EUR CALL ACCOUNT 0.01%
CAD/USD 07/18/2018 CITI 0.00%
CAD/USD 07/18/2018 GSFX 0.00%
EUR/USD 09/19/2018 BANKAM 0.00%
GBP/USD 09/19/2018 BCAP-FX 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 09/19/2018 GSFX -0.01%
EUR/USD 09/19/2018 SSBT -0.01%
GBP/USD 09/19/2018 GSFX -0.01%

Prior top 10 holdings

Top 10 holdings as of 07/31/18
1: JPMorgan Chase 4.11%
2: Microsoft Corp 3.67%
3: Bank Of America Corp 3.47%
4: Citigroup 3.04%
5: Northrop Grumman Corp 2.22%
6: Walmart 2.06%
7: Apple 2.01%
8: Johnson Johnson 1.97%
9: ConocoPhillips 1.95%
10: Exxon Mobil Corp 1.81%
Holdings represent 26.31% of portfolio
Top 10 holdings as of 06/30/18
1: JPMorgan Chase 3.86%
2: Microsoft Corp 3.53%
3: Bank Of America Corp 3.28%
4: Citigroup 2.93%
5: Northrop Grumman Corp 2.36%
6: Walmart 2.05%
7: Apple 2.03%
8: ConocoPhillips 1.95%
9: Exxon Mobil Corp 1.90%
10: Johnson Johnson 1.87%
Holdings represent 25.76% of portfolio
Top 10 holdings as of 05/31/18
1: JPMorgan Chase 4.02%
2: Microsoft Corp 3.59%
3: Bank Of America Corp 3.42%
4: Citigroup 2.97%
5: Northrop Grumman Corp 2.55%
6: Apple 2.08%
7: Marathon Oil Corp 1.94%
8: ConocoPhillips 1.92%
9: Exxon Mobil Corp 1.91%
10: Johnson Johnson 1.88%
Holdings represent 26.28% of portfolio
Top 10 holdings as of 04/30/18
1: JPMorgan Chase 4.10%
2: Bank Of America Corp 3.54%
3: Microsoft Corp 3.41%
4: Citigroup 3.05%
5: Northrop Grumman Corp 2.52%
6: Johnson & Johnson 1.99%
7: ConocoPhillips 1.88%
8: Apple 1.85%
9: Exxon Mobil Corp 1.83%
10: BD Medical 1.74%
Holdings represent 25.91% of portfolio

Portfolio Composition as of 07/31/18

Common stock 96.88%
Cash and net other assets 2.54%
Convertible preferred stock 0.58%

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 07/31/18

Financials 23.16%
Health care 13.08%
Energy 13.06%
Information technology 12.10%
Industrials 8.21%
Consumer staples 8.06%
Consumer discretionary 7.16%
Materials 4.07%
Utilities 3.96%
 
Other
7.14%
Real estate 2.77%
Cash and net other assets 2.54%
Telecommunication services 1.83%