Putnam Capital Manager

Putnam Global Health Care Subaccount

The subaccount seeks capital appreciation.

Putnam Global Health Care Subaccount

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 sectorFrom biotech and drugs to devices and hospitals, the fund invests in industries that can profit from the global demand for health-care products and services.Seeks growth from innovationInnovative health-care solutions are always in demand, giving the fund potential for positive returns regardless of economic conditions.Active managementSupported by experienced research analysts, the portfolio manager uses bottom-up research to assess scientific innovation, regulatory changes, and company fundamentals.

Management team

Risk Characteristics as of 01/31/21

Alpha (%) 1.20
Beta 0.98
R squared 0.95
Standard deviation (3 yrs.) 15.23

‡ 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 01/31/21

Fiscal Year End December
Asset Class Putnam Capital Manager
Subaccount Status Open to new investors
Number of issues 56
Turnover (fiscal year end) 86%
Net Assets $158M
Inception Date 04/30/98

Holdings

UnitedHealth Group 5.98%
Johnson&Johnson 5.40%
Abbvie 5.28%
Astrazeneca 4.96%
Eli Lilly And 4.76%
Roche Holding Ag 4.73%
Novartis Ag 4.53%
Thermo Fisher Scientific 3.55%
Danaher Corp 3.32%
Bristol-Myers Squibb 3.12%
Top 10 holdings, total: 45.63%

Top 10 holdings as of 01/31/21
1: UnitedHealth Group 5.98%
2: Johnson&Johnson 5.40%
3: Abbvie 5.28%
4: Astrazeneca 4.96%
5: Eli Lilly And 4.76%
6: Roche Holding Ag 4.73%
7: Novartis Ag 4.53%
8: Thermo Fisher Scientific 3.55%
9: Danaher Corp 3.32%
10: Bristol-Myers Squibb 3.12%
Holdings represent 45.63% of portfolio
Top 10 holdings as of 12/31/20
1: UnitedHealth Group 6.27%
2: Abbvie 5.50%
3: Johnson&Johnson 5.19%
4: Astrazeneca 4.84%
5: Roche Holding Ag 4.77%
6: Novartis Ag 4.71%
7: Eli Lilly And 3.85%
8: Thermo Fisher Scientific 3.50%
9: Danaher Corp 3.40%
10: Bristol-Myers Squibb 3.14%
Holdings represent 45.17% of portfolio
Top 10 holdings as of 11/30/20
1: UnitedHealth Group 6.65%
2: Abbvie 5.57%
3: Johnson&Johnson 5.04%
4: Novartis Ag 4.69%
5: Roche Holding Ag 4.66%
6: Danaher Corp 4.10%
7: Astrazeneca 3.70%
8: Thermo Fisher Scientific 3.62%
9: Eli Lilly And 3.44%
10: Pfizer 3.35%
Holdings represent 44.82% of portfolio
Top 10 holdings as of 10/31/20
1: UnitedHealth Group 6.56%
2: Johnson&Johnson 5.20%
3: Roche Holding Ag 4.95%
4: Abbvie 4.93%
5: Danaher Corp 4.56%
6: Thermo Fisher Scientific 4.31%
7: Astrazeneca 3.86%
8: Novartis Ag 3.44%
9: Pfizer 3.38%
10: Eli Lilly And 3.35%
Holdings represent 44.54% of portfolio

Portfolio Composition as of 01/31/21

Common stock 96.99%
Cash and net other assets 3.01%

Consider these risks before investing: International investing involves currency, economic, and political risks. Emerging-market securities carry illiquidity and volatility risks. Investments in small and/or midsize companies increase the risk of greater price fluctuations. The health care industries may be affected by technological obsolescence, changes in regulatory approval policies for drugs, medical devices, or procedures, and changes in governmental and private payment systems. The fund concentrates on a limited group of industries and is non-diversified. Because the fund may invest in fewer issuers than a diversified fund, it is vulnerable to common economic forces and may result in greater losses and volatility. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. The use of short selling may result in losses if the securities appreciate in value. Risks associated with derivatives include increased investment exposure (which may be considered leverage) and, in the case of over-the-counter instruments, the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations. The value of investments in the fund’s portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general economic, political, or financial market conditions; investor sentiment and market perceptions; government actions; geopolitical events or changes; and factors related to a specific issuer, geography, industry, or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund’s portfolio holdings. Our investment techniques, analyses, and judgments may not produce the outcome we intend. The investments we select for the fund may not perform as well as other securities that we do not select for the fund. We, or the fund’s other service providers, may experience disruptions or operating errors that could have a negative effect on the fund. You can lose money by investing in the fund. 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.

Top Industry Sectors as of 01/31/21

Pharmaceuticals 41.59%
Biotechnology 18.71%
Health Care Providers & Services 14.01%
Health Care Equipment & Supplies 13.38%
Life Sciences Tools & Services 7.25%
Cash and net other assets 3.01%
Diversified Financial Services 2.05%

Country Allocation as of 01/31/21

United States 74.12%
Switzerland 10.71%
United Kingdom 4.96%
Japan 4.53%
Cash and net other assets 3.01%
Denmark 1.80%
Germany 0.87%