Putnam Hartford Capital Manager

Putnam Global Health Care Subaccount

The subaccount seeks capital appreciation.

Fund description

The subaccount seeks to capitalize on the strength of the health-care sector, targeting companies of all sizes. Holdings encompass an array of industries, including pharmaceuticals, health-care services, and biotechnology. The fund seeks companies that offer strong long-term growth prospects, regardless of their size.

Sales story

Investing in the health-care sectorA dynamic sector: From biotech to pharmaceuticals, the fund seeks out companies that profit from the global demand for health care.A range of companies: The fund invests worldwide in businesses at different stages of growth, from rapidly growing newer companies to established global corporations.Actively managed: Unlike passively managed ETFs, Putnam global sector funds combine rigorous fundamental research and disciplined quantitative analysis with macroeconomic views.

Management team

Risk Characteristics as of 01/31/18

Alpha (%) -2.88
Beta 1.10
R squared 0.94
Standard deviation (3 yrs.) 13.70

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 01/31/18

Fiscal Year End December
Asset Class Putnam Hartford Capital Manager
Subaccount Status Open to new investors
Number of issues 49
Turnover (fiscal year end) 24%
Net Assets $154M
Inception Date 05/01/98

Holdings

Top 10 holdings as of 01/31/18

Vertex Pharmaceuticals 6.67%
BD Medical 6.31%
UnitedHealth Group 6.29%
Bayer Ag 5.72%
Danaher Corp 5.15%
Jazz Pharmaceuticals 5.08%
Novartis Ag 4.50%
Amgen 4.31%
Biogen 3.51%
Merck 3.28%
Top 10 holdings, total: 50.82%

Equity Holdings as of 12/31/17

UNITEDHEALTH GROUP INC 6.32%
BECTON DICKINSON AND CO 6.00%
AMGEN INC 5.49%
BIOGEN INC 5.29%
DANAHER CORP 5.09%
JAZZ PHARMACEUTICALS PLC 5.07%
BAYER AG-REG 4.82%
NOVARTIS AG-REG 4.53%
JOHNSON & JOHNSON 4.38%
VERTEX PHARMACEUTICALS INC 4.23%
DENTSPLY SIRONA INC 3.33%
SANOFI 3.29%
ASTRAZENECA PLC 3.06%
ROCHE HOLDING AG-GENUSSCHEIN 2.99%
PFIZER INC 2.56%
BOSTON SCIENTIFIC CORP 2.49%
GILEAD SCIENCES INC 2.45%
SHIRE PLC 2.14%
CLOVIS ONCOLOGY INC 1.98%
INTUITIVE SURGICAL INC 1.92%
TAKEDA PHARMACEUTICAL CO LTD 1.87%
BRISTOL-MYERS SQUIBB CO 1.70%
CHUGAI PHARMACEUTICAL CO LTD 1.64%
AGILENT TECHNOLOGIES INC 1.61%
MEDICINES COMPANY 1.55%
MERCK & CO. INC. 1.52%
GLAXOSMITHKLINE PLC 1.15%
PACIRA PHARMACEUTICALS INC 1.07%
NIPPON SHINYAKU CO LTD 1.03%
BIOVERATIV INC 1.00%
BIO-RAD LABORATORIES-A 0.90%
CLINIGEN GROUP PLC 0.89%
MIRATI THERAPEUTICS INC 0.82%
GRIFOLS SA-ADR 0.81%
ACLARIS THERAPEUTICS INC 0.73%
PENUMBRA INC 0.72%
FRESENIUS MEDICAL CARE AG & 0.54%
CHINA BIOLOGIC PRODUCTS HOLD 0.52%
ASPEN PHARMACARE HOLDINGS LT 0.37%
GENMARK DIAGNOSTICS INC 0.29%
FEDERAL STREET ACQUISITION 0.27%
OVID THERAPEUTICS INC 0.20%
ZUR ROSE GROUP AG 0.18%
MYOKARDIA INC 0.17%
SINOPHARM GROUP CO-H 0.10%
FENNEC PHARMACEUTICALS INC 0.08%
HTG MOLECULAR DIAGNOSTICS 0.01%
NEURALSTEM INC SERIES K COMMON STOCK PURCHASE WARRANT 0.00%

Full Portfolio Holdings as of 12/31/17

UNITEDHEALTH GROUP INC 6.32%
BECTON DICKINSON AND CO 6.00%
AMGEN INC 5.49%
BIOGEN INC 5.29%
DANAHER CORP 5.09%
JAZZ PHARMACEUTICALS PLC 5.07%
BAYER AG-REG 4.82%
NOVARTIS AG-REG 4.53%
JOHNSON & JOHNSON 4.38%
VERTEX PHARMACEUTICALS INC 4.23%
DENTSPLY SIRONA INC 3.33%
SANOFI 3.29%
ASTRAZENECA PLC 3.06%
ROCHE HOLDING AG-GENUSSCHEIN 2.99%
PFIZER INC 2.56%
BOSTON SCIENTIFIC CORP 2.49%
GILEAD SCIENCES INC 2.45%
SHIRE PLC 2.14%
CLOVIS ONCOLOGY INC 1.98%
INTUITIVE SURGICAL INC 1.92%
TAKEDA PHARMACEUTICAL CO LTD 1.87%
BRISTOL-MYERS SQUIBB CO 1.70%
CHUGAI PHARMACEUTICAL CO LTD 1.64%
AGILENT TECHNOLOGIES INC 1.61%
MEDICINES COMPANY 1.55%
MERCK & CO. INC. 1.52%
GLAXOSMITHKLINE PLC 1.15%
PACIRA PHARMACEUTICALS INC 1.07%
NIPPON SHINYAKU CO LTD 1.03%
BIOVERATIV INC 1.00%
BIO-RAD LABORATORIES-A 0.90%
CLINIGEN GROUP PLC 0.89%
MIRATI THERAPEUTICS INC 0.82%
GRIFOLS SA-ADR 0.81%
ACLARIS THERAPEUTICS INC 0.73%
PENUMBRA INC 0.72%
FRESENIUS MEDICAL CARE AG & 0.54%
CHINA BIOLOGIC PRODUCTS HOLD 0.52%
ASPEN PHARMACARE HOLDINGS LT 0.37%
GENMARK DIAGNOSTICS INC 0.29%
FEDERAL STREET ACQUISITION 0.27%
OVID THERAPEUTICS INC 0.20%
ZUR ROSE GROUP AG 0.18%
MYOKARDIA INC 0.17%
JAPANESE YEN CALL ACCOUNT 0.16%
SINOPHARM GROUP CO-H 0.10%
FENNEC PHARMACEUTICALS INC 0.08%
HTG MOLECULAR DIAGNOSTICS 0.01%
AUD/USD 01/17/2018 JPMCB 0.00%
CHF/USD 03/21/2018 JPMCB 0.00%
DKK/USD 03/21/2018 CITI 0.00%
EUR/USD 03/21/2018 BANKAM 0.00%
INDIAN RUPEE CALL ACCOUNT 0.00%
JPY/USD 02/22/2018 CSI-FX 0.00%
NEURALSTEM INC SERIES K COMMON STOCK PURCHASE WARRANT 0.00%
POUND STERLING CALL ACCOUNT 0.00%

Prior top 10 holdings

Top 10 holdings as of 01/31/18
1: Vertex Pharmaceuticals 6.67%
2: BD Medical 6.31%
3: UnitedHealth Group 6.29%
4: Bayer Ag 5.72%
5: Danaher Corp 5.15%
6: Jazz Pharmaceuticals 5.08%
7: Novartis Ag 4.50%
8: Amgen 4.31%
9: Biogen 3.51%
10: Merck 3.28%
Holdings represent 50.82% of portfolio
Top 10 holdings as of 12/31/17
1: UnitedHealth Group 6.32%
2: Becton Dickinson And 6.00%
3: Amgen 5.49%
4: Biogen 5.29%
5: Danaher Corp 5.09%
6: Jazz Pharmaceuticals 5.07%
7: Bayer Ag 4.82%
8: Novartis Ag 4.53%
9: Johnson & Johnson 4.38%
10: Vertex Pharmaceuticals 4.23%
Holdings represent 51.22% of portfolio
Top 10 holdings as of 11/30/17
1: UnitedHealth Group 6.40%
2: Becton Dickinson And 6.26%
3: Amgen 5.43%
4: Biogen 5.24%
5: Jazz Pharmaceuticals 5.15%
6: Danaher Corp 5.06%
7: Bayer Ag 4.83%
8: Novartis Ag 4.49%
9: Johnson & Johnson 4.27%
10: Vertex Pharmaceuticals 3.99%
Holdings represent 51.12% of portfolio
Top 10 holdings as of 10/31/17
1: UnitedHealth Group 5.98%
2: Amgen 5.50%
3: Jazz Pharmaceuticals 5.29%
4: Becton Dickinson And 5.27%
5: Biogen 5.12%
6: Danaher Corp 5.01%
7: Bayer Ag 4.99%
8: Novartis Ag 4.38%
9: Johnson & Johnson 4.34%
10: Vertex Pharmaceuticals 4.09%
Holdings represent 49.97% of portfolio

Portfolio Composition as of 01/31/18

Common stock 98.32%
Cash and net other assets 1.68%

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 01/31/18

Pharmaceuticals 41.41%
Biotechnology 24.06%
Health Care Equipment & Supplies 21.47%
Health Care Providers & Services 7.46%
Life Sciences Tools & Services 3.27%
Cash and net other assets 1.68%
Diversified Financial Services 0.25%
Health Care Technology 0.23%
Food & Staples Retailing 0.17%

Country Allocation as of 01/31/18

United States 69.51%
Switzerland 7.37%
United Kingdom 7.28%
Germany 6.26%
Japan 4.45%
France 1.70%
Cash and net other assets 1.68%
Spain 0.82%
China 0.58%
 
Other
0.35%
South Africa 0.35%