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 11/30/17

Alpha (%) -2.24
Beta 1.08
R squared 0.93
Standard deviation (3 yrs.) 13.19

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 11/30/17

Fiscal Year End December
Asset Class Putnam Hartford Capital Manager
Subaccount Status Open to new investors
Number of issues 46
Turnover (fiscal year end) 24%
Net Assets $146M
Inception Date 05/01/98

Holdings

Top 10 holdings as of 11/30/17

UnitedHealth Group 6.40%
Becton Dickinson And 6.26%
Amgen 5.43%
Biogen 5.24%
Jazz Pharmaceuticals 5.15%
Danaher Corp 5.06%
Bayer Ag 4.83%
Novartis Ag 4.49%
Johnson & Johnson 4.27%
Vertex Pharmaceuticals 3.99%
Top 10 holdings, total: 51.12%

Equity Holdings as of 09/30/17

UNITEDHEALTH GROUP INC 5.37%
AMGEN INC 5.02%
BECTON DICKINSON AND CO 4.72%
JAZZ PHARMACEUTICALS PLC 4.62%
NOVARTIS AG-REG 4.38%
BAYER AG-REG 4.25%
DANAHER CORP 4.03%
JOHNSON & JOHNSON 3.90%
BIOGEN INC 3.71%
CELGENE CORP 3.69%
SANOFI 3.62%
GILEAD SCIENCES INC 3.30%
MERCK & CO. INC. 3.14%
ROCHE HOLDING AG-GENUSSCHEIN 2.88%
ASTRAZENECA PLC 2.83%
BOSTON SCIENTIFIC CORP 2.78%
VERTEX PHARMACEUTICALS INC 2.44%
PFIZER INC 2.41%
DENTSPLY SIRONA INC 2.40%
SHIRE PLC 1.99%
CLOVIS ONCOLOGY INC 1.98%
INTUITIVE SURGICAL INC 1.74%
BRISTOL-MYERS SQUIBB CO 1.70%
REGENERON PHARMACEUTICALS 1.69%
MCKESSON CORP 1.64%
AGILENT TECHNOLOGIES INC 1.48%
MEDICINES COMPANY 1.48%
CHUGAI PHARMACEUTICAL CO LTD 1.45%
GLAXOSMITHKLINE PLC 1.23%
SHIONOGI & CO LTD 1.06%
BIOVERATIV INC 1.01%
WALGREENS BOOTS ALLIANCE INC 0.92%
CLINIGEN GROUP PLC 0.87%
PACIRA PHARMACEUTICALS INC 0.83%
BIO-RAD LABORATORIES-A 0.81%
ALNYLAM PHARMACEUTICALS INC 0.80%
GRIFOLS SA-ADR 0.74%
ACLARIS THERAPEUTICS INC 0.73%
PENUMBRA INC 0.65%
CHINA BIOLOGIC PRODUCTS HOLD 0.58%
ILLUMINA INC 0.58%
AIN HOLDINGS INC 0.56%
NIPPON SHINYAKU CO LTD 0.56%
FRESENIUS MEDICAL CARE AG & 0.47%
GENMARK DIAGNOSTICS INC 0.40%
AUROBINDO PHARMA LTD 0.39%
ASPEN PHARMACARE HOLDINGS LT 0.35%
PROTHENA CORP PLC 0.27%
FEDERAL STREET ACQUISITION 0.26%
OVID THERAPEUTICS INC - RESTRICTED 0.18%
ZUR ROSE GROUP AG 0.16%
SINOPHARM GROUP CO-H 0.09%
HTG MOLECULAR DIAGNOSTICS 0.01%
NEURALSTEM INC SERIES K COMMON STOCK PURCHASE WARRANT 0.00%

Full Portfolio Holdings as of 09/30/17

UNITEDHEALTH GROUP INC 5.37%
AMGEN INC 5.02%
BECTON DICKINSON AND CO 4.72%
JAZZ PHARMACEUTICALS PLC 4.62%
NOVARTIS AG-REG 4.38%
BAYER AG-REG 4.25%
DANAHER CORP 4.03%
JOHNSON & JOHNSON 3.90%
BIOGEN INC 3.71%
CELGENE CORP 3.69%
SANOFI 3.62%
GILEAD SCIENCES INC 3.30%
MERCK & CO. INC. 3.14%
ROCHE HOLDING AG-GENUSSCHEIN 2.88%
ASTRAZENECA PLC 2.83%
BOSTON SCIENTIFIC CORP 2.78%
VERTEX PHARMACEUTICALS INC 2.44%
PFIZER INC 2.41%
DENTSPLY SIRONA INC 2.40%
SHIRE PLC 1.99%
CLOVIS ONCOLOGY INC 1.98%
INTUITIVE SURGICAL INC 1.74%
BRISTOL-MYERS SQUIBB CO 1.70%
REGENERON PHARMACEUTICALS 1.69%
MCKESSON CORP 1.64%
AGILENT TECHNOLOGIES INC 1.48%
MEDICINES COMPANY 1.48%
CHUGAI PHARMACEUTICAL CO LTD 1.45%
GLAXOSMITHKLINE PLC 1.23%
SHIONOGI & CO LTD 1.06%
BIOVERATIV INC 1.01%
WALGREENS BOOTS ALLIANCE INC 0.92%
CLINIGEN GROUP PLC 0.87%
PACIRA PHARMACEUTICALS INC 0.83%
BIO-RAD LABORATORIES-A 0.81%
ALNYLAM PHARMACEUTICALS INC 0.80%
GRIFOLS SA-ADR 0.74%
ACLARIS THERAPEUTICS INC 0.73%
PENUMBRA INC 0.65%
CHINA BIOLOGIC PRODUCTS HOLD 0.58%
ILLUMINA INC 0.58%
AIN HOLDINGS INC 0.56%
NIPPON SHINYAKU CO LTD 0.56%
FRESENIUS MEDICAL CARE AG & 0.47%
GENMARK DIAGNOSTICS INC 0.40%
AUROBINDO PHARMA LTD 0.39%
ASPEN PHARMACARE HOLDINGS LT 0.35%
PROTHENA CORP PLC 0.27%
FEDERAL STREET ACQUISITION 0.26%
OVID THERAPEUTICS INC - RESTRICTED 0.18%
ZUR ROSE GROUP AG 0.16%
SINOPHARM GROUP CO-H 0.09%
EUR/USD 12/20/2017 BANKAM 0.02%
CHF/USD 12/20/2017 JPMCB 0.01%
DKK/USD 12/20/2017 CITI 0.01%
HTG MOLECULAR DIAGNOSTICS 0.01%
AUD/USD 10/18/2017 HSBCB 0.00%
INDIAN RUPEE CALL ACCOUNT 0.00%
JPY/USD 11/15/2017 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 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
Top 10 holdings as of 09/30/17
1: UnitedHealth Group 5.37%
2: Amgen 5.02%
3: Becton Dickinson And 4.72%
4: Jazz Pharmaceuticals 4.62%
5: Novartis Ag 4.38%
6: Bayer Ag 4.25%
7: Danaher Corp 4.03%
8: Johnson & Johnson 3.90%
9: Biogen 3.71%
10: Celgene Corp 3.69%
Holdings represent 43.69% of portfolio
Top 10 holdings as of 08/31/17
1: UnitedHealth Group 5.49%
2: Amgen 4.84%
3: Becton Dickinson And 4.84%
4: Jazz Pharmaceuticals 4.75%
5: Novartis Ag 4.30%
6: Bayer Ag 4.04%
7: Danaher Corp 3.96%
8: Johnson & Johnson 3.95%
9: Biogen 3.77%
10: Celgene Corp 3.55%
Holdings represent 43.49% of portfolio

Portfolio Composition as of 11/30/17

Common stock 99.63%
Cash and net other assets 0.37%

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 11/30/17

Pharmaceuticals 43.32%
Biotechnology 24.45%
Health Care Equipment & Supplies 20.36%
Health Care Providers & Services 6.98%
Life Sciences Tools & Services 3.50%
Food & Staples Retailing 0.75%
Cash and net other assets 0.37%
Diversified Financial Services 0.26%
Health Care Technology 0.01%

Country Allocation as of 11/30/17

United States 70.15%
Switzerland 7.59%
United Kingdom 6.79%
Germany 5.33%
Japan 4.59%
France 3.41%
Spain 0.79%
China 0.62%
Cash and net other assets 0.37%
 
Other
0.36%
South Africa 0.36%