Putnam Capital Manager

Putnam Sustainable Leaders Subaccount

The subaccount seeks long-term capital appreciation.

Fund description

The subaccount invests in companies of all sizes across a range of industry sectors. The management team looks for stocks of innovative companies that are positioned in sectors believed to offer exceptional growth potential. The fund targets companies with strong management and superior financial characteristics.

Sales story

Investing in growing companies committed to sustainable practicesCommitted companies: The fund invests in growth companies with the goal of delivering positive financial and ESG performance.Active strategy: The managers utilize bottom-up research to identify companies with attractive sustainability, fundamental, and valuation characteristics.Veteran team: A dedicated sustainable investing team is backed by Putnam's equity research and quantitative/risk analysis groups.

Management team

Lipper ranking ‡ as of 10/31/18

Category: Multi-Cap Growth Funds

  Percentile ranking Rank/Funds in category
10 yrs. 64% 45/70
1 yr. 58% 50/86
3 yrs. 38% 32/85
5 yrs. 31% 26/84

Risk Characteristics as of 10/31/18

Alpha (%) -0.93
Beta 1.01
R squared 0.94
Standard deviation (3 yrs.) 11.41

The fund invests all or a portion of its assets in small to midsize companies. Such investments increase the risk of greater price fluctuations. 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 11/30/18

Fiscal Year End December
Asset Class Putnam Capital Manager
Subaccount Status Open to new investors
Number of issues 79
Turnover (fiscal year end) 71%
Net Assets $727M
Inception Date 05/02/94

Holdings

Top 10 holdings as of 10/31/18

Microsoft Corp 6.01%
Alphabet 4.19%
Visa 4.15%
Amazon.Com 3.77%
Unilever Nv 3.25%
Becton Dickinson And 3.09%
Novozymes A/S - B Shares 3.08%
Adobe 2.86%
Danaher Corp 2.65%
Apple 2.49%
Top 10 holdings, total: 35.54%

Equity Holdings as of 09/30/18

MICROSOFT CORP 5.36%
AMAZON.COM INC 4.29%
ALPHABET INC-CL C 4.22%
NOVOZYMES A/S-B SHARES 4.11%
VISA INC-CLASS A SHARES 4.10%
BECTON DICKINSON AND CO 3.17%
UNILEVER NV-CVA 3.05%
DANAHER CORP 2.63%
NORFOLK SOUTHERN CORP 2.62%
APPLE INC 2.33%
HOME DEPOT INC 2.31%
SALESFORCE.COM INC 2.26%
MCCORMICK & CO-NON VTG SHRS 2.00%
ADOBE SYSTEMS INC 1.87%
BLACKROCK INC 1.85%
FORTIVE CORP 1.81%
HILTON WORLDWIDE HOLDINGS IN 1.74%
OKTA INC 1.64%
DXC TECHNOLOGY CO 1.63%
COOPER COS INC/THE 1.62%
ACCENTURE PLC-CL A 1.56%
BALL CORP 1.52%
PRUDENTIAL PLC 1.43%
NXP SEMICONDUCTORS NV 1.41%
BANK OF AMERICA CORP 1.38%
CHIPOTLE MEXICAN GRILL INC 1.38%
ASML HOLDING NV-NY REG SHS 1.28%
AES CORP 1.27%
PENUMBRA INC 1.25%
ROPER TECHNOLOGIES INC 1.23%
E*TRADE FINANCIAL CORPORATION 1.20%
PRAXAIR INC 1.19%
HEINEKEN NV 1.18%
CHR HANSEN HOLDING A/S 1.17%
BOSTON SCIENTIFIC CORP 1.15%
SERVICENOW INC 1.10%
ADIDAS AG 1.09%
MSCI INC 1.09%
VERTEX PHARMACEUTICALS INC 1.09%
HONEYWELL INTERNATIONAL INC 1.08%
WALMART INC 1.04%
TALEND SA - ADR 1.03%
TJX COMPANIES INC 1.03%
NEXTERA ENERGY INC 1.02%
ALPHABET INC-CL A 1.01%
ECOLAB INC 1.00%
LOWES COMPANIES INC 1.00%
FIRST REPUBLIC BANK/CA 0.98%
KELLOGG CO 0.98%
SCHWAB (CHARLES) CORP 0.94%
WEBSTER FINANCIAL CORP 0.88%
AMERICAN TOWER CORP 0.81%
ON SEMICONDUCTOR CORP 0.81%
REALPAGE INC 0.76%
JAZZ PHARMACEUTICALS PLC 0.72%
SUMMIT MATERIALS INC -CL A 0.72%
KION GROUP AG 0.67%
CHALLENGER LTD 0.65%
VAIL RESORTS INC 0.59%
STMICROELECTRONICS NV-NY SHS 0.56%
STANLEY BLACK & DECKER INC 0.52%
BIO-RAD LABORATORIES-A 0.51%
HASBRO INC 0.51%
METTLER-TOLEDO INTERNATIONAL 0.51%
BLUEBIRD BIO INC 0.38%
MEDICINES COMPANY 0.37%
CLOVIS ONCOLOGY INC 0.33%
OPORTUN FIN CORP P/P SERIES H PFD 0.11%
OPORTUN FIN G-1 PFD CV P/P 0.04%
OPORTUN FIN CORP P/P 0.03%
OPORTUN FIN F-1 PFD CV P/P 0.03%
GLOBAL FASHION GRP P/P 0.02%
OPORTUN FIN D-1 PFD CV P/P 0.01%
OPORTUN FIN F PFD CV P/P 0.01%
HC BRILLANT SERVICES GMBH P/P 0.00%
NEURALSTEM INC SERIES K COMMON STOCK PURCHASE WARRANT 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 E-1 PFD CV P/P 0.00%

Full Portfolio Holdings as of 09/30/18

MICROSOFT CORP 5.36%
AMAZON.COM INC 4.29%
ALPHABET INC-CL C 4.22%
NOVOZYMES A/S-B SHARES 4.11%
VISA INC-CLASS A SHARES 4.10%
BECTON DICKINSON AND CO 3.17%
UNILEVER NV-CVA 3.05%
DANAHER CORP 2.63%
NORFOLK SOUTHERN CORP 2.62%
APPLE INC 2.33%
HOME DEPOT INC 2.31%
SALESFORCE.COM INC 2.26%
MCCORMICK & CO-NON VTG SHRS 2.00%
ADOBE SYSTEMS INC 1.87%
BLACKROCK INC 1.85%
FORTIVE CORP 1.81%
HILTON WORLDWIDE HOLDINGS IN 1.74%
OKTA INC 1.64%
DXC TECHNOLOGY CO 1.63%
COOPER COS INC/THE 1.62%
ACCENTURE PLC-CL A 1.56%
BALL CORP 1.52%
PRUDENTIAL PLC 1.43%
NXP SEMICONDUCTORS NV 1.41%
BANK OF AMERICA CORP 1.38%
CHIPOTLE MEXICAN GRILL INC 1.38%
ASML HOLDING NV-NY REG SHS 1.28%
AES CORP 1.27%
PENUMBRA INC 1.25%
ROPER TECHNOLOGIES INC 1.23%
E*TRADE FINANCIAL CORPORATION 1.20%
PRAXAIR INC 1.19%
HEINEKEN NV 1.18%
CHR HANSEN HOLDING A/S 1.17%
BOSTON SCIENTIFIC CORP 1.15%
SERVICENOW INC 1.10%
ADIDAS AG 1.09%
MSCI INC 1.09%
VERTEX PHARMACEUTICALS INC 1.09%
HONEYWELL INTERNATIONAL INC 1.08%
WALMART INC 1.04%
TALEND SA - ADR 1.03%
TJX COMPANIES INC 1.03%
NEXTERA ENERGY INC 1.02%
ALPHABET INC-CL A 1.01%
ECOLAB INC 1.00%
LOWES COMPANIES INC 1.00%
FIRST REPUBLIC BANK/CA 0.98%
KELLOGG CO 0.98%
SCHWAB (CHARLES) CORP 0.94%
WEBSTER FINANCIAL CORP 0.88%
AMERICAN TOWER CORP 0.81%
ON SEMICONDUCTOR CORP 0.81%
REALPAGE INC 0.76%
JAZZ PHARMACEUTICALS PLC 0.72%
SUMMIT MATERIALS INC -CL A 0.72%
KION GROUP AG 0.67%
CHALLENGER LTD 0.65%
VAIL RESORTS INC 0.59%
STMICROELECTRONICS NV-NY SHS 0.56%
STANLEY BLACK & DECKER INC 0.52%
BIO-RAD LABORATORIES-A 0.51%
HASBRO INC 0.51%
METTLER-TOLEDO INTERNATIONAL 0.51%
BLUEBIRD BIO INC 0.38%
MEDICINES COMPANY 0.37%
CLOVIS ONCOLOGY INC 0.33%
OPORTUN FIN CORP P/P SERIES H PFD 0.11%
OPORTUN FIN G-1 PFD CV P/P 0.04%
OPORTUN FIN CORP P/P 0.03%
OPORTUN FIN F-1 PFD CV P/P 0.03%
GLOBAL FASHION GRP P/P 0.02%
OPORTUN FIN D-1 PFD CV P/P 0.01%
OPORTUN FIN F PFD CV P/P 0.01%
AUD/USD 10/17/2018 GSFX 0.00%
AUD/USD 10/17/2018 SSBT 0.00%
AUSTRALIAN DOLLAR ACCOUNT 0.00%
CANADIAN DOLLAR ACCOUNT 0.00%
EUR/USD 12/19/2018 SSBT 0.00%
GBP/USD 12/19/2018 BANKAM 0.00%
HC BRILLANT SERVICES GMBH P/P 0.00%
KOREAN WON CALL ACCOUNT 0.00%
NEURALSTEM INC SERIES K COMMON STOCK PURCHASE WARRANT 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 E-1 PFD CV P/P 0.00%
POUND STERLING CALL ACCOUNT 0.00%
THE EURO EUR CALL ACCOUNT 0.00%
EUR/USD 12/19/2018 UBS -0.01%
EUR/USD 12/19/2018 JPMCB -0.02%

Prior top 10 holdings

Top 10 holdings as of 10/31/18
1: Microsoft Corp 6.01%
2: Alphabet 4.19%
3: Visa 4.15%
4: Amazon.Com 3.77%
5: Unilever Nv 3.25%
6: Becton Dickinson And 3.09%
7: Novozymes A/S - B Shares 3.08%
8: Adobe 2.86%
9: Danaher Corp 2.65%
10: Apple 2.49%
Holdings represent 35.54% of portfolio
Top 10 holdings as of 09/30/18
1: Microsoft Corp 5.36%
2: Alphabet 5.23%
3: Amazon.Com 4.29%
4: Novozymes A/S - B Shares 4.11%
5: Visa 4.10%
6: BD Medical 3.17%
7: Unilever Nv 3.05%
8: Danaher Corp 2.63%
9: Norfolk Southern Corp 2.62%
10: Apple 2.33%
Holdings represent 36.89% of portfolio
Top 10 holdings as of 08/31/18
1: Microsoft Corp 5.23%
2: Amazon 4.28%
3: Novozymes A/S - B Shares 4.08%
4: Visa 3.98%
5: Becton Dickinson and Co 3.16%
6: Unilever Nv 3.12%
7: Norfolk Southern Corp 2.51%
8: Danaher Corp 2.49%
9: Apple 2.33%
10: Home Depot 2.23%
Holdings represent 33.41% of portfolio
Top 10 holdings as of 07/31/18
1: Microsoft Corp 5.06%
2: Alphabet 4.38%
3: Novozymes A/S - B Shares 4.02%
4: Amazon 3.88%
5: Visa 3.80%
6: Norfolk Southern Corp 3.22%
7: Unilever Nv 3.21%
8: Becton Dickinson and Co 3.10%
9: Home Depot 2.73%
10: Blackrock 2.69%
Holdings represent 36.09% of portfolio

Portfolio Composition as of 10/31/18

Common stock 98.92%
Cash and net other assets 0.86%
Convertible preferred stock 0.22%

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

The fund invests all or a portion of its assets in small to midsize companies. Such investments increase the risk of greater price fluctuations. 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.

Top Industry Sectors as of 10/31/18

Information technology 28.84%
Consumer discretionary 13.93%
Health care 13.42%
Financials 10.10%
Consumer staples 9.14%
Materials 9.07%
Industrials 7.39%
Communication services 4.19%
Utilities 2.11%
 
Other
1.81%
Real estate 0.95%
Cash and net other assets 0.86%