Putnam Capital Manager

George Putnam Balanced Fund Subaccount

The subaccount seeks to provide a balanced investment composed of a well-diversified portfolio of stocks and bonds that produces both capital growth and current income.

Fund description

The subaccount seeks its dual objectives of capital growth and current income by investing in a combination of value stocks and fixed-income securities. The equity portion targets stocks of large companies that are currently undervalued and undergoing positive changes. The fixed-income portion includes government, corporate, and mortgage-backed securities. The subaccount typically has a 60%-70% allocation to stocks and a 30%-40% position in bonds.

Sales story

A prudent balance of stocks and bonds A balanced approach The fund seeks conservative growth plus income through a mix of roughly 60% stocks and 40% bonds.Seeking reduced volatility The fund's focus on undervalued stocks and primarily high-quality bonds is designed to reduce volatility for conservative and income-oriented investors.A rigorous process The fund's experienced portfolio managers use rigorous fundamental investment research to find opportunities and manage risk.

Management team

Lipper ranking ‡ as of 10/31/22

Category: BALANCED FUNDS

  Percentile ranking Rank/Funds in category
10 yrs. 15% 18/120
1 yr. 37% 60/162
3 yrs. 17% 27/158
5 yrs. 15% 22/146

Risk characteristics as of 10/31/22

Avg. Eff. Maturity 8.46
Avg. Eff. Duration 5.92
Avg. Coupon --
Avg. Yield to Maturity --
Alpha (%) -2.49
Beta 0.67
R squared 0.97
Standard deviation (3 yrs.) 13.89

Maturity details

0 to 1 yr. 4.89%
1 to 5 yrs. 33.05%
5 to 10 yrs. 41.70%
10 to 15 yrs. 5.77%
Over 15 yrs. 14.59%

Quality ratings

AAA 58.09%
AA 2.57%
A 11.93%
BBB 21.56%
BB 1.71%
B 0.08%
CCC and Below 0.04%
Not Rated 0.03%
Cash and net other assets 3.99%

‡ 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 11/30/22

Fiscal Year End December
Asset Class Putnam Capital Manager
Subaccount Status Open to new investors
Number of issues 484
Turnover (fiscal year end) 97%
Net Assets $209M
Inception Date 04/30/98

Holdings

Microsoft 3.61%
Apple 3.03%
Amazon 2.39%
Us Treasury N/B 01.1250 02/28/2025 2.18%
Alphabet 1.86%
Exxon Mobil 1.73%
Us Treasury N/B 02.7500 08/15/2042 1.69%
Us Treasury N/B 02.2500 11/15/2027 1.64%
Us Treasury N/B 01.6250 02/15/2026 1.61%
Mastercard 1.41%
Top 10 holdings, total: 21.15%


Top 10 holdings as of 10/31/22
1: Microsoft 3.61%
2: Apple 3.03%
3: Amazon 2.39%
4: Us Treasury N/B 01.1250 02/28/2025 2.18%
5: Alphabet 1.86%
6: Exxon Mobil 1.73%
7: Us Treasury N/B 02.7500 08/15/2042 1.69%
8: Us Treasury N/B 02.2500 11/15/2027 1.64%
9: Us Treasury N/B 01.6250 02/15/2026 1.61%
10: Mastercard 1.41%
Holdings represent 21.15% of portfolio
Top 10 holdings as of 09/30/22
1: Microsoft 3.74%
2: Apple 2.96%
3: Amazon 2.74%
4: Us Treasury N/B 01.1250 02/28/2025 2.27%
5: Alphabet 1.92%
6: Us Treasury N/B 02.7500 08/15/2042 1.84%
7: Us Treasury N/B 02.2500 11/15/2027 1.71%
8: Us Treasury N/B 01.6250 02/15/2026 1.68%
9: UnitedHealth Group 1.43%
10: Exxon Mobil Corp Sedol 2326618 1.41%
Holdings represent 21.71% of portfolio
Top 10 holdings as of 08/31/22
1: Microsoft 3.80%
2: Amazon 2.84%
3: Apple 2.73%
4: Us Treasury N/B 01.1250 02/28/2025 2.12%
5: Alphabet 2.01%
6: Us Treasury N/B 00.6250 10/15/2024 1.95%
7: Us Treasury N/B 02.7500 08/15/2042 1.82%
8: Us Treasury N/B 02.2500 11/15/2027 1.63%
9: Us Treasury N/B 01.6250 02/15/2026 1.59%
10: Exxon Mobil 1.41%
Holdings represent 21.90% of portfolio
Top 10 holdings as of 07/31/22
1: Microsoft 3.94%
2: Apple 3.12%
3: Amazon 3.06%
4: Alphabet 2.16%
5: Us Treasury N/B 01.1250 02/28/2025 2.09%
6: Us Treasury N/B 00.6250 10/15/2024 1.91%
7: Us Treasury N/B 02.7500 08/15/2042 1.87%
8: Us Treasury N/B 02.2500 11/15/2027 1.62%
9: Us Treasury N/B 01.6250 02/15/2026 1.58%
10: Mastercard 1.48%
Holdings represent 22.83% of portfolio


Portfolio Composition as of 10/31/22

Common stock 61.72%
Corporate bonds and notes 14.03%
Treasury 13.35%
Agency pass-through 7.96%
Cash and net other assets 2.13%
Commercial MBS 0.74%
Municipal bonds 0.07%

Consider these risks before investing: 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. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. Bond investments are subject to interest-rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments). Interest-rate risk is generally greater for longer-term bonds, and credit risk is generally greater for below-investment-grade bonds. 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. 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 10/31/22

Information technology 23.98%
Health care 15.87%
Consumer discretionary 12.35%
Financials 9.54%
Industrials 8.72%
Consumer staples 6.96%
Communication services 6.48%
Energy 6.06%
Utilities 3.55%
 
Other
6.49%
Materials 3.38%
Cash and net other assets 2.13%
Real estate 0.98%