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 08/31/18

Alpha (%) -4.24
Beta 1.07
R squared 0.94
Standard deviation (3 yrs.) 12.84

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 08/31/18

Fiscal Year End December
Asset Class Putnam Hartford Capital Manager
Subaccount Status Open to new investors
Number of issues 47
Turnover (fiscal year end) 60%
Net Assets $145M
Inception Date 05/01/98

Holdings

Top 10 holdings as of 08/31/18

UnitedHealth Group 7.58%
Becton Dickinson And 7.23%
Danaher Corp 6.45%
Vertex Pharmaceuticals 5.17%
Jazz Pharmaceuticals 4.90%
Astrazeneca 4.78%
Novartis Ag 4.38%
Boston Scientific Corp 4.06%
Bayer Ag 3.82%
Merck 3.70%
Top 10 holdings, total: 52.07%

Equity Holdings as of 06/30/18

UNITEDHEALTH GROUP INC 7.10%
BECTON DICKINSON AND CO 6.78%
DANAHER CORP 6.05%
VERTEX PHARMACEUTICALS INC 5.68%
JAZZ PHARMACEUTICALS PLC 5.18%
BAYER AG-REG 4.75%
ASTRAZENECA PLC 4.64%
NOVARTIS AG-REG 4.10%
BOSTON SCIENTIFIC CORP 4.08%
MERCK & CO. INC. 3.92%
ALEXION PHARMACEUTICALS INC 3.21%
AMGEN INC 2.97%
BRISTOL-MYERS SQUIBB CO 2.75%
ROCHE HOLDING AG-GENUSSCHEIN 2.66%
JOHNSON & JOHNSON 2.55%
INTUITIVE SURGICAL INC 2.54%
GILEAD SCIENCES INC 2.38%
MEDICINES COMPANY 2.35%
PFIZER INC 2.01%
BAXTER INTERNATIONAL INC 1.91%
CHUGAI PHARMACEUTICAL CO LTD 1.70%
FRESENIUS SE & CO KGAA 1.63%
CIGNA CORP 1.38%
GLAXOSMITHKLINE PLC 1.34%
HOYA CORP 1.34%
CLINIGEN GROUP PLC 1.23%
DENTSPLY SIRONA INC 1.19%
PENUMBRA INC 1.18%
METTLER-TOLEDO INTERNATIONAL 1.06%
CLOVIS ONCOLOGY INC 1.00%
GRIFOLS SA-ADR 0.77%
BIO-RAD LABORATORIES-A 0.74%
CHINA BIOLOGIC PRODUCTS HOLD 0.66%
NIPPON SHINYAKU CO LTD 0.61%
DIPLOMAT PHARMACY INC 0.60%
SERVICE CORP INTERNATIONAL 0.55%
ATARA BIOTHERAPEUTICS INC 0.53%
GENMARK DIAGNOSTICS INC 0.48%
SIEMENS HEALTH 0.46%
WALGREENS BOOTS ALLIANCE INC 0.45%
COOPER COS INC/THE 0.40%
ASPEN PHARMACARE HOLDINGS LT 0.32%
FEDERAL STREET ACQUISITION 0.27%
HTG MOLECULAR DIAGNOSTICS 0.23%
FENNEC PHARMACEUTICALS INC 0.19%
ZUR ROSE GROUP AG 0.17%
SINOPHARM GROUP CO-H 0.09%
NEURALSTEM INC SERIES K COMMON STOCK PURCHASE WARRANT 0.00%

Full Portfolio Holdings as of 06/30/18

UNITEDHEALTH GROUP INC 7.10%
BECTON DICKINSON AND CO 6.78%
DANAHER CORP 6.05%
VERTEX PHARMACEUTICALS INC 5.68%
JAZZ PHARMACEUTICALS PLC 5.18%
BAYER AG-REG 4.75%
ASTRAZENECA PLC 4.64%
NOVARTIS AG-REG 4.10%
BOSTON SCIENTIFIC CORP 4.08%
MERCK & CO. INC. 3.92%
ALEXION PHARMACEUTICALS INC 3.21%
AMGEN INC 2.97%
BRISTOL-MYERS SQUIBB CO 2.75%
ROCHE HOLDING AG-GENUSSCHEIN 2.66%
JOHNSON & JOHNSON 2.55%
INTUITIVE SURGICAL INC 2.54%
GILEAD SCIENCES INC 2.38%
MEDICINES COMPANY 2.35%
PFIZER INC 2.01%
BAXTER INTERNATIONAL INC 1.91%
CHUGAI PHARMACEUTICAL CO LTD 1.70%
FRESENIUS SE & CO KGAA 1.63%
CIGNA CORP 1.38%
GLAXOSMITHKLINE PLC 1.34%
HOYA CORP 1.34%
CLINIGEN GROUP PLC 1.23%
DENTSPLY SIRONA INC 1.19%
PENUMBRA INC 1.18%
METTLER-TOLEDO INTERNATIONAL 1.06%
CLOVIS ONCOLOGY INC 1.00%
GRIFOLS SA-ADR 0.77%
BIO-RAD LABORATORIES-A 0.74%
CHINA BIOLOGIC PRODUCTS HOLD 0.66%
NIPPON SHINYAKU CO LTD 0.61%
DIPLOMAT PHARMACY INC 0.60%
SERVICE CORP INTERNATIONAL 0.55%
ATARA BIOTHERAPEUTICS INC 0.53%
GENMARK DIAGNOSTICS INC 0.48%
SIEMENS HEALTH 0.46%
WALGREENS BOOTS ALLIANCE INC 0.45%
COOPER COS INC/THE 0.40%
ASPEN PHARMACARE HOLDINGS LT 0.32%
FEDERAL STREET ACQUISITION 0.27%
HTG MOLECULAR DIAGNOSTICS 0.23%
FENNEC PHARMACEUTICALS INC 0.19%
ZUR ROSE GROUP AG 0.17%
SINOPHARM GROUP CO-H 0.09%
EUR/USD 09/19/2018 BANKAM 0.02%
AUD/USD 07/18/2018 JPMCB 0.01%
CHF/USD 09/19/2018 JPMCB 0.01%
DKK/USD 09/19/2018 CITI 0.01%
INDIAN RUPEE CALL ACCOUNT 0.00%
JPY/USD 08/16/2018 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 08/31/18
1: UnitedHealth Group 7.58%
2: Becton Dickinson And 7.23%
3: Danaher Corp 6.45%
4: Vertex Pharmaceuticals 5.17%
5: Jazz Pharmaceuticals 4.90%
6: Astrazeneca 4.78%
7: Novartis Ag 4.38%
8: Boston Scientific Corp 4.06%
9: Bayer Ag 3.82%
10: Merck 3.70%
Holdings represent 52.07% of portfolio
Top 10 holdings as of 07/31/18
1: UnitedHealth Group 7.18%
2: Becton Dickinson And 6.94%
3: Danaher Corp 6.41%
4: Vertex Pharmaceuticals 5.25%
5: Jazz Pharmaceuticals 4.98%
6: Astrazeneca 4.92%
7: Bayer Ag 4.58%
8: Novartis Ag 4.46%
9: Boston Scientific Corp 3.85%
10: Merck 3.56%
Holdings represent 52.13% of portfolio
Top 10 holdings as of 06/30/18
1: UnitedHealth Group 7.10%
2: Becton Dickinson And 6.78%
3: Danaher Corp 6.05%
4: Vertex Pharmaceuticals 5.27%
5: Jazz Pharmaceuticals 5.18%
6: Bayer Ag 4.75%
7: Astrazeneca 4.64%
8: Novartis Ag 4.10%
9: Boston Scientific Corp 4.08%
10: Merck 3.92%
Holdings represent 51.87% of portfolio
Top 10 holdings as of 05/31/18
1: UnitedHealth Group 7.01%
2: Becton Dickinson And 6.29%
3: Danaher Corp 6.10%
4: Jazz Pharmaceuticals 5.10%
5: Astrazeneca 4.90%
6: Vertex Pharmaceuticals 4.79%
7: Bayer Ag 4.73%
8: Novartis Ag 4.03%
9: Merck 3.86%
10: Boston Scientific Corp 3.80%
Holdings represent 50.61% of portfolio

Portfolio Composition as of 08/31/18

Common stock 98.65%
Cash and net other assets 1.35%

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 08/31/18

Pharmaceuticals 38.21%
Health Care Equipment & Supplies 26.88%
Biotechnology 17.49%
Health Care Providers & Services 10.63%
Life Sciences Tools & Services 3.32%
Cash and net other assets 1.35%
Food & Staples Retailing 0.67%
Diversified Consumer Services 0.61%
Diversified Financial Services 0.54%
 
Other
0.30%
Health Care Technology 0.30%

Country Allocation as of 08/31/18

United States 72.56%
Switzerland 7.46%
United Kingdom 7.36%
Germany 5.78%
Japan 3.71%
Cash and net other assets 1.35%
Spain 0.76%
China 0.69%
South Africa 0.33%