Putnam 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 02/28/19

Alpha (%) -2.23
Beta 1.02
R squared 0.94
Standard deviation (3 yrs.) 12.47

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 02/28/19

Fiscal Year End December
Asset Class Putnam Capital Manager
Subaccount Status Open to new investors
Number of issues 53
Turnover (fiscal year end) 54%
Net Assets $140M
Inception Date 05/01/98

Holdings

Top 10 holdings as of 02/28/19

UnitedHealth Group 7.86%
Merck 7.14%
Danaher Corp 6.74%
Novartis Ag 5.41%
Johnson Johnson 4.85%
Pfizer 4.08%
Roche Holding Ag 4.05%
Eli Lilly 3.50%
Becton Dickinson And 3.48%
Boston Scientific Corp 3.26%
Top 10 holdings, total: 50.37%

Equity Holdings as of 12/31/18

UNITEDHEALTH GROUP INC 7.88%
MERCK & CO. INC. 7.29%
DANAHER CORP 7.23%
BECTON DICKINSON AND CO 6.72%
ASTRAZENECA PLC 5.26%
NOVARTIS AG-REG 5.06%
VERTEX PHARMACEUTICALS INC 4.01%
JAZZ PHARMACEUTICALS PLC 3.68%
ELI LILLY & CO 3.49%
ROCHE HOLDING AG-GENUSSCHEIN 3.23%
BOSTON SCIENTIFIC CORP 3.12%
JOHNSON & JOHNSON 2.90%
BIOGEN INC 2.87%
PFIZER INC 2.58%
INTUITIVE SURGICAL INC 2.56%
BAYER AG-REG 2.22%
COOPER COS INC/THE 2.13%
METTLER-TOLEDO INTERNATIONAL 1.84%
CHUGAI PHARMACEUTICAL CO LTD 1.68%
CIGNA CORP 1.65%
HOYA CORP 1.54%
CELGENE CORP 1.45%
GLAXOSMITHKLINE PLC 1.37%
ICU MEDICAL INC 1.30%
MIRATI THERAPEUTICS INC 1.19%
BAXTER INTERNATIONAL INC 1.16%
PENUMBRA INC 1.11%
FRESENIUS SE & CO KGAA 1.06%
AMGEN INC 1.03%
MEDICINES COMPANY 0.97%
BIOMARIN PHARMACEUTICAL INC 0.91%
GRIFOLS SA-ADR 0.72%
NIPPON SHINYAKU CO LTD 0.66%
SERVICE CORP INTERNATIONAL 0.66%
CLINIGEN GROUP PLC 0.61%
MORPHOSYS AG 0.60%
WALGREENS BOOTS ALLIANCE INC 0.55%
ATARA BIOTHERAPEUTICS INC 0.54%
ASCENDIS PHARMA A/S - ADR 0.53%
BIO-RAD LABORATORIES-A 0.49%
CLOVIS ONCOLOGY INC 0.44%
ANAPTYSBIO INC 0.32%
FEDERAL STREET ACQUISITION 0.30%
FEDERAL STREET ACQ � AGILITI 0.29%
MOMENTA PHARMACEUTICALS INC 0.26%
HTG MOLECULAR DIAGNOSTICS 0.19%
ZUR ROSE GROUP AG 0.19%
FENNEC PHARMACEUTICALS INC 0.12%
SINOPHARM GROUP CO-H 0.10%
AVID BIOSERVICES INC 0.04%

Full Portfolio Holdings as of 12/31/18

UNITEDHEALTH GROUP INC 7.88%
MERCK & CO. INC. 7.29%
DANAHER CORP 7.23%
BECTON DICKINSON AND CO 6.72%
ASTRAZENECA PLC 5.26%
NOVARTIS AG-REG 5.06%
VERTEX PHARMACEUTICALS INC 4.01%
JAZZ PHARMACEUTICALS PLC 3.68%
ELI LILLY & CO 3.49%
ROCHE HOLDING AG-GENUSSCHEIN 3.23%
BOSTON SCIENTIFIC CORP 3.12%
JOHNSON & JOHNSON 2.90%
BIOGEN INC 2.87%
PFIZER INC 2.58%
INTUITIVE SURGICAL INC 2.56%
BAYER AG-REG 2.22%
COOPER COS INC/THE 2.13%
METTLER-TOLEDO INTERNATIONAL 1.84%
CHUGAI PHARMACEUTICAL CO LTD 1.68%
CIGNA CORP 1.65%
HOYA CORP 1.54%
CELGENE CORP 1.45%
GLAXOSMITHKLINE PLC 1.37%
ICU MEDICAL INC 1.30%
MIRATI THERAPEUTICS INC 1.19%
BAXTER INTERNATIONAL INC 1.16%
PENUMBRA INC 1.11%
FRESENIUS SE & CO KGAA 1.06%
AMGEN INC 1.03%
MEDICINES COMPANY 0.97%
BIOMARIN PHARMACEUTICAL INC 0.91%
GRIFOLS SA-ADR 0.72%
NIPPON SHINYAKU CO LTD 0.66%
SERVICE CORP INTERNATIONAL 0.66%
CLINIGEN GROUP PLC 0.61%
MORPHOSYS AG 0.60%
WALGREENS BOOTS ALLIANCE INC 0.55%
ATARA BIOTHERAPEUTICS INC 0.54%
ASCENDIS PHARMA A/S - ADR 0.53%
BIO-RAD LABORATORIES-A 0.49%
CLOVIS ONCOLOGY INC 0.44%
ANAPTYSBIO INC 0.32%
FEDERAL STREET ACQUISITION 0.30%
FEDERAL STREET ACQ � AGILITI 0.29%
MOMENTA PHARMACEUTICALS INC 0.26%
HTG MOLECULAR DIAGNOSTICS 0.19%
ZUR ROSE GROUP AG 0.19%
FENNEC PHARMACEUTICALS INC 0.12%
SINOPHARM GROUP CO-H 0.10%
AVID BIOSERVICES INC 0.04%
EUR/USD 03/20/2019 BANKAM 0.04%
CHF/USD 03/20/2019 JPMCB 0.02%
DKK/USD 03/20/2019 CITI 0.02%
AUD/USD 01/16/2019 JPMCB 0.01%
JPY/USD 02/20/2019 CSI-FX 0.00%

Prior top 10 holdings

Top 10 holdings as of 02/28/19
1: UnitedHealth Group 7.86%
2: Merck 7.14%
3: Danaher Corp 6.74%
4: Novartis Ag 5.41%
5: Johnson Johnson 4.85%
6: Pfizer 4.08%
7: Roche Holding Ag 4.05%
8: Eli Lilly 3.50%
9: Becton Dickinson And 3.48%
10: Boston Scientific Corp 3.26%
Holdings represent 50.37% of portfolio
Top 10 holdings as of 01/31/19
1: UnitedHealth Group 8.03%
2: Merck 6.68%
3: Danaher Corp 6.60%
4: Becton Dickinson And 6.33%
5: Novartis Ag 5.27%
6: Johnson Johnson 4.83%
7: Roche Holding Ag 3.72%
8: Jazz Pharmaceuticals 3.51%
9: Eli Lilly 3.40%
10: Boston Scientific Corp 3.17%
Holdings represent 51.54% of portfolio
Top 10 holdings as of 12/31/18
1: UnitedHealth Group 7.88%
2: Merck 7.29%
3: Danaher Corp 7.23%
4: Becton Dickinson And 6.72%
5: Astrazeneca 5.26%
6: Novartis Ag 5.06%
7: Vertex Pharmaceuticals 4.01%
8: Jazz Pharmaceuticals 3.68%
9: Eli Lilly 3.49%
10: Roche Holding Ag 3.23%
Holdings represent 53.85% of portfolio
Top 10 holdings as of 11/30/18
1: UnitedHealth Group 8.09%
2: Danaher Corp 7.15%
3: Becton Dickinson And 6.97%
4: Merck 5.48%
5: Astrazeneca 5.07%
6: Novartis Ag 4.91%
7: Jazz Pharmaceuticals 4.08%
8: Vertex Pharmaceuticals 3.98%
9: Boston Scientific Corp 3.55%
10: Roche Holding Ag 3.08%
Holdings represent 52.36% of portfolio

Portfolio Composition as of 02/28/19

Common stock 96.89%
Cash and net other assets 3.11%

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 02/28/19

Pharmaceuticals 44.94%
Health Care Equipment & Supplies 22.60%
Biotechnology 14.32%
Health Care Providers & Services 12.99%
Cash and net other assets 3.11%
Life Sciences Tools & Services 2.04%

Country Allocation as of 02/28/19

United States 74.76%
Switzerland 9.47%
United Kingdom 5.60%
Cash and net other assets 3.11%
Denmark 2.14%
France 1.64%
Japan 1.29%
Germany 1.06%
Australia 0.93%