Putnam Capital Manager

Putnam Global Utilities Subaccount

The subaccount seeks capital growth and current income.

Fund description

The subaccount pursues its objective of growth and income by targeting a wide range of utilities, including natural gas, electric, and communication services companies. By investing in stocks and bonds of well-managed utilities that Putnam believes are priced below their underlying worth, the subaccount seeks consistent performance in all market environments.

Sales story

Investing in the utilities sectorA dynamic sector: From distribution to power storage, the fund seeks out companies that profit from the growth of and demand for utilities.A diversified approach: The fund may invest in domestic and foreign markets, and companies of different sizes across several industries and varying degrees of regulation.Actively managed: Unlike passively managed ETFs, Putnam global sector funds combine rigorous fundamental research and disciplined quantitative analysis with macroeconomic views.

Management team

The fund concentrates its investments in one region or in one sector and involves more risk than a fund that invests more broadly. 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 01/31/19

Fiscal Year End December
Asset Class Putnam Capital Manager
Subaccount Status Open to new investors
Number of issues 38
Turnover (fiscal year end) 83%
Net Assets $62M
Inception Date 05/01/92

Holdings

Top 10 holdings as of 01/31/19

Nextera Energy 9.18%
American Electric Power 7.08%
Exelon Corp 5.38%
Enel Spa 4.61%
Sempra Energy 4.00%
Enterprise Products Partn 3.90%
Nrg Energy 3.89%
Dominion Energy 3.59%
Duke Energy Corp 3.51%
Eversource Energy 3.48%
Top 10 holdings, total: 48.62%

Represents equity portion of portfolio.

Equity Holdings as of 12/31/18

NEXTERA ENERGY INC 9.31%
AMERICAN ELECTRIC POWER 7.35%
EXELON CORP 5.30%
DOMINION ENERGY INC 4.78%
ENEL SPA 4.40%
DUKE ENERGY CORP 4.13%
NRG ENERGY INC 4.05%
EVERSOURCE ENERGY 3.41%
NATIONAL GRID PLC 3.21%
SSE PLC 3.13%
FIRSTENERGY CORP 3.10%
VEOLIA ENVIRONNEMENT 3.08%
ENTERPRISE PRODUCTS PARTNERS 3.01%
IBERDROLA SA 2.97%
SOUTHERN CO/THE 2.81%
CMS ENERGY CORP 2.77%
FORTUM OYJ 2.70%
NATURGY ENERGY GROUP SA 2.36%
AMEREN CORPORATION 2.30%
CENTERPOINT ENERGY INC 2.29%
SEMPRA ENERGY 2.11%
EDISON INTERNATIONAL 2.10%
PUBLIC SERVICE ENTERPRISE GP 2.02%
KINDER MORGAN INC 1.99%
KANSAI ELECTRIC POWER CO INC 1.49%
TOKYO GAS CO LTD 1.37%
E.ON SE 1.26%
UNIPER SE 1.13%
CK INFRASTRUCTURE HOLDINGS L 1.10%
CHUBU ELECTRIC POWER CO INC 1.08%
WEC ENERGY GROUP INC 0.74%
HONG KONG & CHINA GAS 0.73%
CLP HOLDINGS LTD 0.66%
ENGIE 0.61%
CHINA WATER AFFAIRS GROUP 0.53%
P G & E CORP 0.52%
ELECTRIC POWER DEVELOPMENT C 0.51%
ORSTED A/S 0.40%

Full Portfolio Holdings as of 12/31/18

NEXTERA ENERGY INC 9.31%
AMERICAN ELECTRIC POWER 7.35%
EXELON CORP 5.30%
DOMINION ENERGY INC 4.78%
ENEL SPA 4.40%
DUKE ENERGY CORP 4.13%
NRG ENERGY INC 4.05%
EVERSOURCE ENERGY 3.41%
NATIONAL GRID PLC 3.21%
SSE PLC 3.13%
FIRSTENERGY CORP 3.10%
VEOLIA ENVIRONNEMENT 3.08%
ENTERPRISE PRODUCTS PARTNERS 3.01%
IBERDROLA SA 2.97%
SOUTHERN CO/THE 2.81%
CMS ENERGY CORP 2.77%
FORTUM OYJ 2.70%
NATURGY ENERGY GROUP SA 2.36%
AMEREN CORPORATION 2.30%
CENTERPOINT ENERGY INC 2.29%
SEMPRA ENERGY 2.11%
EDISON INTERNATIONAL 2.10%
PUBLIC SERVICE ENTERPRISE GP 2.02%
KINDER MORGAN INC 1.99%
KANSAI ELECTRIC POWER CO INC 1.49%
TOKYO GAS CO LTD 1.37%
E.ON SE 1.26%
UNIPER SE 1.13%
CK INFRASTRUCTURE HOLDINGS L 1.10%
CHUBU ELECTRIC POWER CO INC 1.08%
WEC ENERGY GROUP INC 0.74%
HONG KONG & CHINA GAS 0.73%
CLP HOLDINGS LTD 0.66%
ENGIE 0.61%
CHINA WATER AFFAIRS GROUP 0.53%
P G & E CORP 0.52%
ELECTRIC POWER DEVELOPMENT C 0.51%
ORSTED A/S 0.40%
EUR/USD 03/20/2019 JPMCB 0.02%
DKK/USD 03/20/2019 CITI 0.01%
EUR/USD 03/20/2019 GSFX 0.01%
GBP/USD 03/20/2019 JPMCB 0.01%
AUD/USD 01/16/2019 BANKAM 0.00%
AUD/USD 01/16/2019 CITI 0.00%
AUD/USD 01/16/2019 UBS 0.00%
CAD/USD 01/16/2019 CITI 0.00%
CAD/USD 01/16/2019 SSBT 0.00%
CNH/USD 02/20/2019 GSFX 0.00%
GBP/USD 03/20/2019 SSBT 0.00%
HKD/USD 02/20/2019 BCAP-FX 0.00%
JPY/USD 02/20/2019 GSFX 0.00%
JPY/USD 02/20/2019 JPMCB 0.00%
JPY/USD 02/20/2019 SSBT 0.00%
NZD/USD 01/16/2019 GSFX 0.00%
NZD/USD 01/16/2019 HSBCB 0.00%
CAD/USD 01/16/2019 JPMCB -0.01%
GBP/USD 03/20/2019 BCAP-FX -0.01%

Prior top 10 holdings

Top 10 holdings as of 01/31/19
1: Nextera Energy 9.18%
2: American Electric Power 7.08%
3: Exelon Corp 5.38%
4: Enel Spa 4.61%
5: Sempra Energy 4.00%
6: Enterprise Products Partn 3.90%
7: Nrg Energy 3.89%
8: Dominion Energy 3.59%
9: Duke Energy Corp 3.51%
10: Eversource Energy 3.48%
Holdings represent 48.62% of portfolio
Top 10 holdings as of 12/31/18
1: Nextera Energy 9.31%
2: American Electric Power 7.35%
3: Exelon Corp 5.30%
4: Dominion Energy 4.78%
5: Enel Spa 4.40%
6: Duke Energy Corp 4.13%
7: Nrg Energy 4.05%
8: Eversource Energy 3.41%
9: National Grid 3.21%
10: Sse 3.13%
Holdings represent 49.07% of portfolio
Top 10 holdings as of 11/30/18
1: Nextera Energy 9.37%
2: American Electric Power 7.36%
3: Dominion Energy 5.44%
4: Exelon Corp 5.25%
5: Duke Energy Corp 4.08%
6: Nrg Energy 3.79%
7: Sse 3.74%
8: Eversource Energy 3.45%
9: Enel Spa 3.38%
10: National Grid 3.28%
Holdings represent 49.14% of portfolio
Top 10 holdings as of 10/31/18
1: Nextera Energy 9.76%
2: American Electric Power 7.11%
3: Dominion Energy 5.49%
4: Exelon Corp 5.10%
5: Sse 3.73%
6: Duke Energy Corp 3.62%
7: Nrg Energy 3.49%
8: Edison International 3.44%
9: National Grid 3.30%
10: Eversource Energy 3.22%
Holdings represent 48.26% of portfolio

Portfolio Composition as of 01/31/19

Common stock 98.17%
Cash and net other assets 1.83%

Portfolio allocations vary over time. The fund concentrates its investments in one region or in one sector and involves more risk than a fund that invests more broadly. 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.

Top Industry Sectors as of 01/31/19

Electric Utilities 54.60%
Multi-Utilities 26.33%
Oil, Gas & Consumable Fuels 6.26%
Independent Power and Renewable Electricity Producers 5.81%
Gas Utilities 4.67%
Cash and net other assets 1.83%
Water Utilities 0.50%

Country Allocation as of 01/31/19

United States 64.88%
United Kingdom 6.29%
Spain 5.46%
Japan 4.77%
Italy 4.61%
France 3.67%
Hong Kong 2.70%
Germany 2.56%
Finland 2.31%
 
Other
2.75%
Cash and net other assets 1.83%
China 0.50%
Denmark 0.42%