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 11/30/17

Category: Equity Income Funds

  Percentile ranking Rank/Funds in category
10 yrs. 4% 2/53
1 yr. 15% 11/75
3 yrs. 41% 29/70
5 yrs. 18% 11/63

Risk Characteristics as of 11/30/17

Alpha (%) 0.82
Beta 0.94
R squared 0.96
Standard deviation (3 yrs.) 9.83

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 11/30/17

Fiscal Year End December
Asset Class Putnam Hartford Capital Manager
Subaccount Status Open to new investors
Number of issues 117
Turnover (fiscal year end) 16%
Net Assets $1,563M
Inception Date 05/01/03

Holdings

Top 10 holdings as of 11/30/17

JPMorgan Chase 3.87%
Citigroup 3.32%
Bank Of America Corp 3.29%
Microsoft Corp 2.98%
Northrop Grumman Corp 2.78%
Johnson & Johnson 2.16%
Apple 1.93%
Exxon Mobil Corp 1.92%
Dowdupont 1.78%
Becton Dickinson And 1.71%
Top 10 holdings, total: 25.74%

Represents equity portion of portfolio.

Equity Holdings as of 09/30/17

JPMORGAN CHASE & CO 3.61%
CITIGROUP INC 3.27%
BANK OF AMERICA CORP 3.02%
NORTHROP GRUMMAN CORP 2.99%
MICROSOFT CORP 2.81%
COMCAST CORP-CLASS A 2.25%
JOHNSON & JOHNSON 2.05%
EXXON MOBIL CORP 1.93%
APPLE INC 1.77%
DOWDUPONT INC 1.75%
AT&T INC 1.69%
ALCOA CORP 1.61%
BECTON DICKINSON AND CO 1.50%
SCHWAB (CHARLES) CORP 1.50%
CIGNA CORP 1.45%
CONOCOPHILLIPS 1.45%
ELI LILLY & CO 1.35%
RAYTHEON COMPANY 1.33%
GILEAD SCIENCES INC 1.32%
MERCK & CO. INC. 1.29%
AMGEN INC 1.28%
MARATHON OIL CORP 1.24%
AMERICAN INTERNATIONAL GROUP 1.22%
WELLS FARGO & CO 1.19%
JOHNSON CONTROLS INTERNATION 1.18%
STATE STREET CORP 1.12%
DXC TECHNOLOGY CO 1.11%
TEXAS INSTRUMENTS INC 1.10%
VALERO ENERGY CORP 1.07%
PEPSICO INC 1.06%
REGIONS FINANCIAL CORP 1.03%
UNION PACIFIC CORP 1.02%
AGILENT TECHNOLOGIES INC 1.01%
ALPHABET INC-CL C 1.00%
ASSURED GUARANTY LTD 1.00%
ASTRAZENECA PLC-SPONS ADR 0.99%
DELPHI AUTOMOTIVE PLC 0.98%
GOLDMAN SACHS GROUP INC 0.93%
CISCO SYSTEMS INC 0.91%
TOTAL SA 0.91%
HARTFORD FINANCIAL SVCS GRP 0.89%
CHARTER COMMUNICATIONS INC-A 0.88%
RADIAN GROUP INC 0.88%
SOUTHWEST AIRLINES CO 0.88%
EOG RESOURCES INC 0.86%
O'REILLY AUTOMOTIVE INC 0.86%
EXELON CORP 0.85%
FIDELITY NATIONAL INFO SERV 0.84%
NRG ENERGY INC 0.84%
PFIZER INC 0.84%
KKR & CO LP 0.83%
CHUBB LTD 0.81%
DR PEPPER SNAPPLE GROUP INC 0.81%
EDGEWELL PERSONAL CARE CO 0.80%
HILTON WORLDWIDE HOLDINGS IN 0.80%
KRAFT HEINZ CO/THE 0.80%
HALLIBURTON CO 0.78%
BOSTON PROPERTIES INC 0.74%
DANAHER CORP 0.74%
ANADARKO PETROLEUM CORP 0.73%
AIR PRODUCTS & CHEMICALS INC 0.70%
AMERICAN TOWER CORP 0.69%
HOME DEPOT INC 0.69%
BALL CORP 0.68%
EDISON INTERNATIONAL 0.68%
HONEYWELL INTERNATIONAL INC 0.67%
APPLIED MATERIALS INC 0.65%
INTEL CORP 0.65%
KEYCORP 0.65%
CALPINE CORP 0.63%
CAPITAL ONE FINANCIAL CORP 0.63%
AMERICAN ELECTRIC POWER 0.62%
SEALED AIR CORP 0.62%
KROGER CO 0.61%
GENERAL ELECTRIC CO 0.59%
SUNCOR ENERGY INC 0.58%
CF INDUSTRIES HOLDINGS INC 0.57%
GAMING AND LEISURE PROPERTIE 0.55%
VERIZON COMMUNICATIONS INC 0.54%
WALGREENS BOOTS ALLIANCE INC 0.54%
MANDATORY EXCH TRUST P/P 144A 05.7500 CV PFD 0.50%
NXP SEMICONDUCTORS NV 0.50%
P G & E CORP 0.50%
VODAFONE GROUP PLC-SP ADR 0.50%
FEDERAL REALTY INVS TRUST 0.49%
GENERAL MOTORS CO 0.49%
PULTEGROUP INC 0.48%
BROADCOM LTD 0.47%
NEXTERA ENERGY INC 0.44%
CHENIERE ENERGY INC 0.43%
FORTIVE CORP 0.42%
MOLSON COORS BREWING CO -B 0.42%
INVESCO LTD 0.41%
AIRBUS SE 0.40%
MFA FINANCIAL INC 0.38%
COTY INC-CL A 0.34%
PIONEER NAT RES CO 0.28%
ARCONIC INC 05.3750 CUM CV PFD 0.27%
DISH NETWORK CORP-A 0.27%
COLGATE-PALMOLIVE CO 0.20%
AMERICAN TOWER CORP 05.5000 CV PFD 0.13%
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%
FABFURNISH 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 09/30/17

JPMORGAN CHASE & CO 3.61%
CITIGROUP INC 3.27%
BANK OF AMERICA CORP 3.02%
NORTHROP GRUMMAN CORP 2.99%
MICROSOFT CORP 2.81%
COMCAST CORP-CLASS A 2.25%
JOHNSON & JOHNSON 2.05%
EXXON MOBIL CORP 1.93%
APPLE INC 1.77%
DOWDUPONT INC 1.75%
AT&T INC 1.69%
ALCOA CORP 1.61%
BECTON DICKINSON AND CO 1.50%
SCHWAB (CHARLES) CORP 1.50%
CIGNA CORP 1.45%
CONOCOPHILLIPS 1.45%
ELI LILLY & CO 1.35%
RAYTHEON COMPANY 1.33%
GILEAD SCIENCES INC 1.32%
MERCK & CO. INC. 1.29%
AMGEN INC 1.28%
MARATHON OIL CORP 1.24%
AMERICAN INTERNATIONAL GROUP 1.22%
WELLS FARGO & CO 1.19%
JOHNSON CONTROLS INTERNATION 1.18%
STATE STREET CORP 1.12%
DXC TECHNOLOGY CO 1.11%
TEXAS INSTRUMENTS INC 1.10%
VALERO ENERGY CORP 1.07%
PEPSICO INC 1.06%
REGIONS FINANCIAL CORP 1.03%
UNION PACIFIC CORP 1.02%
AGILENT TECHNOLOGIES INC 1.01%
ALPHABET INC-CL C 1.00%
ASSURED GUARANTY LTD 1.00%
ASTRAZENECA PLC-SPONS ADR 0.99%
DELPHI AUTOMOTIVE PLC 0.98%
GOLDMAN SACHS GROUP INC 0.93%
CISCO SYSTEMS INC 0.91%
TOTAL SA 0.91%
HARTFORD FINANCIAL SVCS GRP 0.89%
CHARTER COMMUNICATIONS INC-A 0.88%
RADIAN GROUP INC 0.88%
SOUTHWEST AIRLINES CO 0.88%
EOG RESOURCES INC 0.86%
O'REILLY AUTOMOTIVE INC 0.86%
EXELON CORP 0.85%
FIDELITY NATIONAL INFO SERV 0.84%
NRG ENERGY INC 0.84%
PFIZER INC 0.84%
KKR & CO LP 0.83%
CHUBB LTD 0.81%
DR PEPPER SNAPPLE GROUP INC 0.81%
EDGEWELL PERSONAL CARE CO 0.80%
HILTON WORLDWIDE HOLDINGS IN 0.80%
KRAFT HEINZ CO/THE 0.80%
HALLIBURTON CO 0.78%
BOSTON PROPERTIES INC 0.74%
DANAHER CORP 0.74%
ANADARKO PETROLEUM CORP 0.73%
AIR PRODUCTS & CHEMICALS INC 0.70%
AMERICAN TOWER CORP 0.69%
HOME DEPOT INC 0.69%
BALL CORP 0.68%
EDISON INTERNATIONAL 0.68%
HONEYWELL INTERNATIONAL INC 0.67%
APPLIED MATERIALS INC 0.65%
INTEL CORP 0.65%
KEYCORP 0.65%
CALPINE CORP 0.63%
CAPITAL ONE FINANCIAL CORP 0.63%
AMERICAN ELECTRIC POWER 0.62%
SEALED AIR CORP 0.62%
KROGER CO 0.61%
GENERAL ELECTRIC CO 0.59%
SUNCOR ENERGY INC 0.58%
CF INDUSTRIES HOLDINGS INC 0.57%
GAMING AND LEISURE PROPERTIE 0.55%
VERIZON COMMUNICATIONS INC 0.54%
WALGREENS BOOTS ALLIANCE INC 0.54%
MANDATORY EXCH TRUST P/P 144A 05.7500 CV PFD 0.50%
NXP SEMICONDUCTORS NV 0.50%
P G & E CORP 0.50%
VODAFONE GROUP PLC-SP ADR 0.50%
FEDERAL REALTY INVS TRUST 0.49%
GENERAL MOTORS CO 0.49%
PULTEGROUP INC 0.48%
BROADCOM LTD 0.47%
NEXTERA ENERGY INC 0.44%
CHENIERE ENERGY INC 0.43%
FORTIVE CORP 0.42%
MOLSON COORS BREWING CO -B 0.42%
INVESCO LTD 0.41%
AIRBUS SE 0.40%
MFA FINANCIAL INC 0.38%
COTY INC-CL A 0.34%
PIONEER NAT RES CO 0.28%
ARCONIC INC 05.3750 CUM CV PFD 0.27%
DISH NETWORK CORP-A 0.27%
COLGATE-PALMOLIVE CO 0.20%
AMERICAN TOWER CORP 05.5000 CV PFD 0.13%
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 10/18/2017 CITI 0.00%
CAD/USD 10/18/2017 GSFX 0.00%
EUR/USD 12/20/2017 GSFX 0.00%
FABFURNISH GMBH P/P 0.00%
GBP/USD 12/20/2017 BANKAM 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%
THE EURO EUR CALL ACCOUNT 0.00%
EUR/USD 12/20/2017 BANKAM -0.01%
EUR/USD 12/20/2017 SSBT -0.01%
GBP/USD 12/20/2017 BCAP-FX -0.01%
GBP/USD 12/20/2017 GSFX -0.02%

Prior top 10 holdings

Top 10 holdings as of 11/30/17
1: JPMorgan Chase 3.87%
2: Citigroup 3.32%
3: Bank Of America Corp 3.29%
4: Microsoft Corp 2.98%
5: Northrop Grumman Corp 2.78%
6: Johnson & Johnson 2.16%
7: Apple 1.93%
8: Exxon Mobil Corp 1.92%
9: Dowdupont 1.78%
10: Becton Dickinson And 1.71%
Holdings represent 25.74% of portfolio
Top 10 holdings as of 10/31/17
1: JPMorgan Chase 3.77%
2: Citigroup 3.28%
3: Bank Of America Corp 3.24%
4: Microsoft Corp 2.98%
5: Northrop Grumman Corp 2.88%
6: Johnson & Johnson 2.18%
7: Exxon Mobil Corp 1.94%
8: Apple 1.93%
9: Dowdupont 1.81%
10: Becton Dickinson And 1.58%
Holdings represent 25.59% of portfolio
Top 10 holdings as of 09/30/17
1: JPMorgan Chase 3.61%
2: Citigroup 3.27%
3: Bank Of America Corp 3.02%
4: Northrop Grumman Corp 2.99%
5: Microsoft Corp 2.81%
6: Comcast Corp 2.25%
7: Johnson & Johnson 2.05%
8: Exxon Mobil Corp 1.93%
9: Apple 1.77%
10: Dowdupont 1.75%
Holdings represent 25.45% of portfolio
Top 10 holdings as of 08/31/17
1: JPMorgan Chase 3.51%
2: Microsoft Corp 3.39%
3: Northrop Grumman Corp 3.30%
4: Citigroup 3.13%
5: Bank Of America Corp 2.91%
6: Comcast Corp 2.42%
7: Johnson & Johnson 2.14%
8: Apple 1.93%
9: AT&T 1.65%
10: Exxon Mobil Corp 1.60%
Holdings represent 25.98% of portfolio

Portfolio Composition as of 11/30/17

Common stock 98.21%
Cash and net other assets 1.08%
Convertible preferred stock 0.71%

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 11/30/17

Financials 24.20%
Health care 13.11%
Information technology 12.93%
Energy 10.65%
Industrials 9.32%
Consumer discretionary 7.11%
Consumer staples 5.85%
Materials 5.70%
Utilities 4.57%
 
Other
6.56%
Real estate 2.87%
Telecommunication services 2.61%
Cash and net other assets 1.08%