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 which produce 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 10/31/18

Category: BALANCED FUNDS

  Percentile ranking Rank/Funds in category
10 yrs. 48% 55/114
1 yr. 18% 27/150
3 yrs. 15% 19/133
5 yrs. 14% 18/131

Risk characteristics as of 10/31/18

Avg. Eff. Maturity 8.86
Avg. Price --
Avg. Eff. Duration 5.98
Avg. Coupon --
Avg. Yield to Maturity --
Alpha (%) -0.78
Beta 0.66
R squared 0.95
Standard deviation (3 yrs.) 6.24

Maturity details

0 to 1 yr. 2.16%
1 to 5 yrs. 30.60%
5 to 10 yrs. 51.17%
10 to 15 yrs. 2.72%
Over 15 yrs. 13.35%

Quality ratings

AAA 57.33%
AA 2.91%
A 12.95%
BBB 22.85%
BB 1.95%
CCC and Below 0.04%
Not Rated 1.97%

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.The use of derivatives involves additional risks, such as the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations.Although value investing targets stocks believed to be priced too low, there is no guarantee they will appreciate.

‡ 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 10/31/18

Fiscal Year End December
Asset Class Putnam Capital Manager
Subaccount Status Open to new investors
Number of issues 414
Turnover (fiscal year end) 191%
Net Assets $140M
Inception Date 05/01/98

Holdings

Top 10 holdings as of 10/31/18

Fnma Fn30 Tba 04.5000 11/01/2048 2.92%
Fnma Fn30 Tba 04.0000 11/01/2048 2.86%
Us Treasury N/B 01.5000 05/31/2020 2.52%
Microsoft 2.36%
Apple 2.11%
Us Treasury N/B 02.0000 11/30/2020 2.07%
Alphabet 1.94%
Amazon 1.75%
Bank of America 1.30%
Us Treasury N/B 02.2500 02/15/2021 1.27%
Top 10 holdings, total: 21.10%

Equity Holdings as of 09/30/18

MICROSOFT CORP 2.50%
AMAZON.COM INC 2.15%
APPLE INC 2.15%
ALPHABET INC-CL A 2.08%
BANK OF AMERICA CORP 1.44%
VISA INC-CLASS A SHARES 1.26%
CITIGROUP INC 1.16%
FACEBOOK INC-A 1.13%
HOME DEPOT INC 1.11%
COCA-COLA CO/THE 1.08%
BP PLC 1.07%
HONEYWELL INTERNATIONAL INC 1.04%
QUALCOMM INC 1.02%
ACTIVISION BLIZZARD INC 0.94%
JPMORGAN CHASE & CO 0.88%
DANAHER CORP 0.84%
KKR & CO INC -A 0.81%
BECTON DICKINSON AND CO 0.79%
EMERSON ELECTRIC CO 0.78%
DXC TECHNOLOGY CO 0.75%
GOLDMAN SACHS GROUP INC 0.75%
DOWDUPONT INC 0.73%
PROCTER & GAMBLE CO/THE 0.73%
SALESFORCE.COM INC 0.72%
ADOBE SYSTEMS INC 0.70%
MERCK & CO. INC. 0.69%
PRUDENTIAL PLC 0.68%
CIGNA CORP 0.66%
EXXON MOBIL CORP 0.64%
GILEAD SCIENCES INC 0.64%
CENOVUS ENERGY INC 0.63%
UNITEDHEALTH GROUP INC 0.62%
BOEING CO/THE 0.60%
KINDER MORGAN INC 0.59%
NORFOLK SOUTHERN CORP 0.59%
GENERAL MOTORS CO 0.58%
NXP SEMICONDUCTORS NV 0.58%
AT&T INC 0.56%
FORTIVE CORP 0.55%
ROPER TECHNOLOGIES INC 0.54%
ASSURED GUARANTY LTD 0.53%
BRISTOL-MYERS SQUIBB CO 0.52%
E*TRADE FINANCIAL CORPORATION 0.52%
JOHNSON & JOHNSON 0.52%
INTEL CORP 0.51%
AMERICAN ELECTRIC POWER 0.49%
TEXTRON INC 0.48%
WALMART INC 0.47%
BOOKING HOLDINGS INC 0.46%
BOSTON SCIENTIFIC CORP 0.45%
NRG ENERGY INC 0.45%
RAYTHEON COMPANY 0.45%
BLACKROCK INC 0.44%
NCSOFT CORP 0.44%
PFIZER INC 0.44%
WASTE CONNECTIONS INC 0.44%
SHERWIN-WILLIAMS CO/THE 0.43%
CHARTER COMMUNICATIONS INC-A 0.41%
UNION PACIFIC CORP 0.41%
TJX COMPANIES INC 0.40%
TWENTY-FIRST CENTURY FOX-A 0.40%
EXELON CORP 0.39%
HILTON WORLDWIDE HOLDINGS IN 0.39%
AMGEN INC 0.38%
COMCAST CORP-CLASS A 0.38%
NIKE INC -CL B 0.38%
RAYMOND JAMES FINANCIAL INC 0.38%
VERIZON COMMUNICATIONS INC 0.38%
MCCORMICK & CO-NON VTG SHRS 0.37%
KELLOGG CO 0.36%
PEPSICO INC 0.36%
COSTCO WHOLESALE CORP 0.35%
JAZZ PHARMACEUTICALS PLC 0.34%
NETEASE INC-ADR 0.34%
NEXTERA ENERGY INC 0.34%
VERTEX PHARMACEUTICALS INC 0.34%
ON SEMICONDUCTOR CORP 0.32%
YUM CHINA HOLDINGS INC 0.32%
AMERICAN INTERNATIONAL GROUP 0.31%
BAXTER INTERNATIONAL INC 0.31%
CHUBB LTD 0.31%
INTUITIVE SURGICAL INC 0.31%
COOPER COS INC/THE 0.30%
INTERCONTINENTAL EXCHANGE IN 0.30%
ALEXION PHARMACEUTICALS INC 0.29%
CHIPOTLE MEXICAN GRILL INC 0.29%
FIRST DATA CORP- CLASS A 0.29%
FMC CORP 0.29%
WALGREENS BOOTS ALLIANCE INC 0.29%
CLOROX COMPANY 0.28%
CONOCOPHILLIPS 0.28%
BIOGEN INC 0.27%
SBA COMMUNICATIONS CORP 0.27%
EVERBRIDGE INC 0.26%
GAMING AND LEISURE PROPERTIE 0.26%
WYNN RESORTS LTD 0.26%
FIDELITY NATIONAL INFO SERV 0.25%
METTLER-TOLEDO INTERNATIONAL 0.25%
SEVEN GENERATIONS ENERGY - A 0.25%
YELLOW CAKE PLC 0.25%
TENCENT HOLDINGS LTD 0.24%
LIVE NATION ENTERTAINMENT IN 0.23%
CAIRN ENERGY PLC 0.22%
ANADARKO PETROLEUM CORP 0.21%
BALL CORP 0.21%
DOMINION ENERGY INC 0.20%
DEERE & CO 0.19%
GODADDY INC - CLASS A 0.19%
ADVANCE AUTO PARTS 0.18%
DUKE ENERGY CORP 0.17%
NOBLE ENERGY INC 0.17%
BURLINGTON STORES INC 0.16%
O'REILLY AUTOMOTIVE INC 0.16%
SUMMIT MATERIALS INC -CL A 0.16%
ELI LILLY & CO 0.15%
INVESCO LTD 0.14%
MGM RESORTS INTERNATIONAL 0.14%
APTIV PLC 0.13%
EDISON INTERNATIONAL 0.13%
ALCOA CORP 0.12%
PPG INDUSTRIES INC 0.11%
HEINEKEN NV 0.10%
INVESTMENT TECHNOLOGY GROUP 0.10%
RESTAURANT BRANDS INTERN 0.10%
ALIBABA GROUP HOLDING-SP ADR 0.08%
AMEREN CORPORATION 0.08%
P G & E CORP 0.08%
APOLLO GLOBAL MANAGEMENT - A 0.07%
W.R. GRACE & CO 0.07%
BJ'S WHOLESALE CLUB HOLDINGS 0.06%
ECOLAB INC 0.06%
JOHN BEAN TECHNOLOGIES CORP 0.05%
OPORTUN FIN CORP P/P SERIES H PFD 0.04%
ARCHER-DANIELS-MIDLAND CO 0.03%
OPORTUN FIN CORP P/P 0.02%
OPORTUN FIN F-1 PFD CV P/P 0.02%
OPORTUN FIN G-1 PFD CV P/P 0.02%
OPORTUN FIN F PFD CV P/P 0.01%
OPORTUN FIN A-1 PFD CV P/P 0.00%
OPORTUN FIN B-1 PFD CV P/P 0.00%
OPORTUN FIN C-1 PFD CV P/P 0.00%
OPORTUN FIN D-1 PFD CV P/P 0.00%
OPORTUN FIN E-1 PFD CV P/P 0.00%

Full Portfolio Holdings as of 09/30/18

FNMA FN30 TBA 04.5000 10/01/2048 2.80%
MICROSOFT CORP 2.50%
US TREASURY N/B 01.5000 05/31/2020 2.39%
AMAZON.COM INC 2.15%
APPLE INC 2.15%
ALPHABET INC-CL A 2.08%
US TREASURY N/B 02.0000 11/30/2020 1.96%
BANK OF AMERICA CORP 1.44%
FNMA FN30 TBA 04.0000 11/01/2048 1.37%
VISA INC-CLASS A SHARES 1.26%
US TREASURY N/B 02.7500 08/15/2042 1.24%
US TREASURY N/B 02.1250 12/31/2022 1.19%
US TREASURY N/B 01.8750 11/30/2021 1.18%
US TREASURY N/B 02.0000 02/15/2022 1.18%
CITIGROUP INC 1.16%
FNMA FN40 BF0169 3.500000 01/01/2057 1.16%
FACEBOOK INC-A 1.13%
HOME DEPOT INC 1.11%
COCA-COLA CO/THE 1.08%
BP PLC 1.07%
HONEYWELL INTERNATIONAL INC 1.04%
QUALCOMM INC 1.02%
ACTIVISION BLIZZARD INC 0.94%
JPMORGAN CHASE & CO 0.88%
DANAHER CORP 0.84%
KKR & CO INC -A 0.81%
BECTON DICKINSON AND CO 0.79%
EMERSON ELECTRIC CO 0.78%
DXC TECHNOLOGY CO 0.75%
GOLDMAN SACHS GROUP INC 0.75%
DOWDUPONT INC 0.73%
PROCTER & GAMBLE CO/THE 0.73%
SALESFORCE.COM INC 0.72%
ADOBE SYSTEMS INC 0.70%
MERCK & CO. INC. 0.69%
GNMA GII30 TBA 03.5000 10/01/2048 0.68%
PRUDENTIAL PLC 0.68%
FNMA FN30 TBA 03.5000 10/01/2048 0.67%
US TREASURY N/B 02.7500 02/15/2024 0.67%
CIGNA CORP 0.66%
GNMA GII30 TBA 03.0000 10/01/2048 0.66%
EXXON MOBIL CORP 0.64%
GILEAD SCIENCES INC 0.64%
CENOVUS ENERGY INC 0.63%
US TREASURY N/B 01.1250 12/31/2019 0.63%
UNITEDHEALTH GROUP INC 0.62%
US TREASURY N/B 01.0000 08/31/2019 0.62%
BOEING CO/THE 0.60%
KINDER MORGAN INC 0.59%
NORFOLK SOUTHERN CORP 0.59%
GENERAL MOTORS CO 0.58%
NXP SEMICONDUCTORS NV 0.58%
AT&T INC 0.56%
FORTIVE CORP 0.55%
ROPER TECHNOLOGIES INC 0.54%
ASSURED GUARANTY LTD 0.53%
FNMA FN30 BC1155 03.0000 06/01/2046 0.53%
BRISTOL-MYERS SQUIBB CO 0.52%
E*TRADE FINANCIAL CORPORATION 0.52%
JOHNSON & JOHNSON 0.52%
INTEL CORP 0.51%
AMERICAN ELECTRIC POWER 0.49%
TEXTRON INC 0.48%
WALMART INC 0.47%
BOOKING HOLDINGS INC 0.46%
BOSTON SCIENTIFIC CORP 0.45%
NRG ENERGY INC 0.45%
RAYTHEON COMPANY 0.45%
BLACKROCK INC 0.44%
NCSOFT CORP 0.44%
PFIZER INC 0.44%
WASTE CONNECTIONS INC 0.44%
SHERWIN-WILLIAMS CO/THE 0.43%
CHARTER COMMUNICATIONS INC-A 0.41%
INTL BK RECON & DEVELOP 07.6250 01/19/2023 0.41%
UNION PACIFIC CORP 0.41%
US TREASURY N/B 03.0000 02/15/2047 0.41%
TJX COMPANIES INC 0.40%
TWENTY-FIRST CENTURY FOX-A 0.40%
EXELON CORP 0.39%
HILTON WORLDWIDE HOLDINGS IN 0.39%
AMGEN INC 0.38%
COMCAST CORP-CLASS A 0.38%
NIKE INC -CL B 0.38%
RAYMOND JAMES FINANCIAL INC 0.38%
VERIZON COMMUNICATIONS INC 0.38%
MCCORMICK & CO-NON VTG SHRS 0.37%
KELLOGG CO 0.36%
PEPSICO INC 0.36%
COSTCO WHOLESALE CORP 0.35%
JAZZ PHARMACEUTICALS PLC 0.34%
METLIFE CAP TRST IV P/P 144A 07.8750 12/15/2037 0.34%
NETEASE INC-ADR 0.34%
NEXTERA ENERGY INC 0.34%
VERTEX PHARMACEUTICALS INC 0.34%
ON SEMICONDUCTOR CORP 0.32%
YUM CHINA HOLDINGS INC 0.32%
AMERICAN INTERNATIONAL GROUP 0.31%
BAXTER INTERNATIONAL INC 0.31%
CHUBB LTD 0.31%
INTUITIVE SURGICAL INC 0.31%
COOPER COS INC/THE 0.30%
INTERCONTINENTAL EXCHANGE IN 0.30%
ALEXION PHARMACEUTICALS INC 0.29%
CHIPOTLE MEXICAN GRILL INC 0.29%
FIRST DATA CORP- CLASS A 0.29%
FMC CORP 0.29%
WALGREENS BOOTS ALLIANCE INC 0.29%
CLOROX COMPANY 0.28%
CONOCOPHILLIPS 0.28%
BIOGEN INC 0.27%
SBA COMMUNICATIONS CORP 0.27%
EVERBRIDGE INC 0.26%
GAMING AND LEISURE PROPERTIE 0.26%
WYNN RESORTS LTD 0.26%
FIDELITY NATIONAL INFO SERV 0.25%
METTLER-TOLEDO INTERNATIONAL 0.25%
SEVEN GENERATIONS ENERGY - A 0.25%
UBS AG REGS 05.1250 05/15/2024 0.25%
YELLOW CAKE PLC 0.25%
TENCENT HOLDINGS LTD 0.24%
LIVE NATION ENTERTAINMENT IN 0.23%
CAIRN ENERGY PLC 0.22%
JPMORGAN CHASE & CO 03.9640 11/15/2048 0.22%
ANADARKO PETROLEUM CORP 0.21%
BALL CORP 0.21%
DOMINION ENERGY INC 0.20%
HALFMOON PARENT INC P/P 144A 03.7500 07/15/2023 0.20%
HARTFORD FINL SVCS GRP 06.6250 03/30/2040 0.20%
WEC ENERGY GROUP INC 04.4263 05/15/2067 0.20%
CREDIT SUISSE GRP AG P/P 144A 04.2820 01/09/2028 0.19%
DEERE & CO 0.19%
GNMA GII30 OBD1715 03.5000 11/20/2047 0.19%
GNMA GII30 OBD1716 03.5000 11/20/2047 0.19%
GODADDY INC - CLASS A 0.19%
ADVANCE AUTO PARTS 0.18%
SANTANDER UK PLC P/P 144A 05.0000 11/07/2023 0.18%
CITIGROUP INC 04.7500 05/18/2046 0.17%
DUKE ENERGY CORP 0.17%
ENERGY TRANSFER PARTNERS 06.6250 02/15/2028 0.17%
NOBLE ENERGY INC 0.17%
BURLINGTON STORES INC 0.16%
GOLDMAN SACHS GROUP INC 03.8500 01/26/2027 0.16%
MASS MUTUAL LIFE P/P 144A 08.8750 06/01/2039 0.16%
O'REILLY AUTOMOTIVE INC 0.16%
SUMMIT MATERIALS INC -CL A 0.16%
ANHEUSER-BUSCH INBEV FIN 04.9000 02/01/2046 0.15%
ELI LILLY & CO 0.15%
GOLDMAN SACHS GROUP INC 04.2230 05/01/2029 0.15%
BPCE SA P/P 144A 05.1500 07/21/2024 0.14%
FISERV INC 04.2000 10/01/2028 0.14%
ING BANK NV P/P 144A 05.8000 09/25/2023 0.14%
INVESCO LTD 0.14%
MGM RESORTS INTERNATIONAL 0.14%
MSC 2012-C4 D P/P 144A 05.6008 03/15/2045 0.14%
UNITEDHEALTH GROUP INC 03.8500 06/15/2028 0.14%
AON PLC USD 04.2500 12/12/2042 0.13%
APTIV PLC 0.13%
ASHTEAD CAPITAL INC P/P 144A 04.3750 08/15/2027 0.13%
BMW US CAPITAL LLC P/P 144A 03.9500 08/14/2028 0.13%
EDISON INTERNATIONAL 0.13%
ERAC USA FINANCE LLC P/P 144A 07.0000 10/15/2037 0.13%
SALESFORCE.COM INC 03.7000 04/11/2028 0.13%
WESTROCK MWV LLC 08.2000 01/15/2030 0.13%
ALCOA CORP 0.12%
AT&T INC P/P 144A 04.1000 02/15/2028 0.12%
BANK OF AMERICA CORP 06.1100 01/29/2037 0.12%
ECOLAB INC 03.2500 12/01/2027 0.12%
GEORGIA-PACIFIC LLC 07.7500 11/15/2029 0.12%
INTERPUBLIC GROUP COS 04.6500 10/01/2028 0.12%
KEURIG DR PEPPER INC P/P 144A 04.5970 05/25/2028 0.12%
21ST CENTURY FOX AMERICA 07.7500 01/20/2024 0.11%
CF INDUSTRIES INC P/P 144A 04.5000 12/01/2026 0.11%
CVS PASS-THRU TRUST P/P 144A 07.5070 01/10/2032 0.11%
FIRSTENERGY TRANSMIS P/P 144A 05.4500 07/15/2044 0.11%
GSMS 2014-GC22 C 04.8458 06/10/2047 0.11%
PPG INDUSTRIES INC 0.11%
WILLIAMS COMPANIES INC 04.3000 03/04/2024 0.11%
AMERICAN INTL GROUP 08.1750 05/15/2058 0.10%
BRDCOM CRP / FIN 03.8750 01/15/2027 0.10%
DIGITAL REALTY TRUST LP 04.4500 07/15/2028 0.10%
HEINEKEN NV 0.10%
IHS MARKIT LTD P/P 144A 04.7500 02/15/2025 0.10%
INVESTMENT TECHNOLOGY GROUP 0.10%
KRAFT HEINZ FOODS CO 04.3750 06/01/2046 0.10%
RESTAURANT BRANDS INTERN 0.10%
TELEFONICA EMISIONES SAU USD 04.8950 03/06/2048 0.10%
TEXAS-NEW MEXICO PR P/P 144A 09.5000 04/01/2019 0.10%
WESTLAKE CHEM CORP 03.6000 08/15/2026 0.10%
BECTON DICKINSON AND CO 04.6690 06/06/2047 0.09%
COMCAST CORP 03.1500 03/01/2026 0.09%
CONCHO RESOURCES INC 03.7500 10/01/2027 0.09%
DIAMOND 1 FIN/DIAMON P/P 144A 05.4500 06/15/2023 0.09%
FAIRFAX FINL HLDGS P/P 144A 04.8500 04/17/2028 0.09%
HILTON WORLDWIDE FIN LLC 04.8750 04/01/2027 0.09%
JPMORGAN CHASE & CO 05.3000 12/29/2049 0.09%
LEAR CORP 03.8000 09/15/2027 0.09%
LEGRAND FRANCE USD 08.5000 02/15/2025 0.09%
MICROCHIP TECH INC P/P 144A 04.3330 06/01/2023 0.09%
NORTHROP GRUMMAN CORP 03.2500 01/15/2028 0.09%
PRUDENTIAL FINANCIAL INC 05.2000 03/15/2044 0.09%
REPUBLIC SERVICES INC 03.9500 05/15/2028 0.09%
SABINE PASS LIQUEF 05.0000 03/15/2027 0.09%
TRANSCANADA TRUST USD 05.3000 03/15/2077 0.09%
WP CAREY INC 04.6000 04/01/2024 0.09%
ALIBABA GROUP HOLDING-SP ADR 0.08%
AMAZON.COM INC 04.0500 08/22/2047 0.08%
AMEREN CORPORATION 0.08%
CGCMT 2014-GC21 C 04.7800 05/10/2047 0.08%
CHARTER COMM OPT LLC 06.4840 10/23/2045 0.08%
CVS HEALTH CORP 04.7800 03/25/2038 0.08%
ELANCO ANIMAL HEALTH P/P 144A 04.9000 08/28/2028 0.08%
JOHNSON CONTROLS INTL PL 04.5000 02/15/2047 0.08%
LAMB WESTON HOLDINGS P/P 144A 04.8750 11/01/2026 0.08%
OSHKOSH CORP 04.6000 05/15/2028 0.08%
P G & E CORP 0.08%
SHERWIN-WILLIAMS CO 03.4500 06/01/2027 0.08%
SIRIUS XM RADIO INC P/P 144A 05.0000 08/01/2027 0.08%
STANDARD IND INC P/P 144A 05.0000 02/15/2027 0.08%
WESTERN DIGITAL CORP 04.7500 02/15/2026 0.08%
WILLIS TOWERS WATSON PLC USD 05.7500 03/15/2021 0.08%
AIR LEASE CORP 03.0000 09/15/2023 0.07%
APOLLO GLOBAL MANAGEMENT - A 0.07%
BECTON DICKINSON AND CO 03.7000 06/06/2027 0.07%
CANTOR FITZGERALD LP P/P 144A 06.5000 06/17/2022 0.07%
CITIGROUP INC 04.4500 09/29/2027 0.07%
COMM 2013-CR13 AM 04.4490 11/10/2046 0.07%
EL PASO NATURAL GAS 08.3750 06/15/2032 0.07%
EQT CORP 03.9000 10/01/2027 0.07%
GNMA GII30 OBD1714 03.5000 11/20/2047 0.07%
NEWELL BRANDS INC 04.2000 04/01/2026 0.07%
ORACLE CORP 02.6500 07/15/2026 0.07%
VODAFONE GROUP PLC USD 04.3750 05/30/2028 0.07%
W.R. GRACE & CO 0.07%
WEYERHAEUSER CO 07.3750 03/15/2032 0.07%
WFRBS 2013-UBS1 AS 04.3060 03/15/2046 0.07%
ZOETIS INC 03.9000 08/20/2028 0.07%
ALPHABET INC 01.9980 08/15/2026 0.06%
AMAZON.COM INC 03.1500 08/22/2027 0.06%
AMGEN INC 04.6630 06/15/2051 0.06%
ARC PROP OPER PART L 04.6000 02/06/2024 0.06%
AUTONATION INC. 05.5000 02/01/2020 0.06%
BJ'S WHOLESALE CLUB HOLDINGS 0.06%
CGCMT 2014-GC21 AS 04.0260 05/10/2047 0.06%
COX COMM INC P/P 144A 03.5000 08/15/2027 0.06%
DIAGEO INVESTMENT CORP 08.0000 09/15/2022 0.06%
ECOLAB INC 0.06%
ERAC USA FINANCE LLC P/P 144A 05.6250 03/15/2042 0.06%
FIDELITY NATIONAL INFORM 04.2500 05/15/2028 0.06%
GLENCORE FUNDING LLC P/P 144A 04.6250 04/29/2024 0.06%
MICROSOFT CORP 02.4000 08/08/2026 0.06%
NEXTERA ENERGY CAPITAL 04.8000 12/01/2077 0.06%
ORACLE CORP 03.2500 11/15/2027 0.06%
SHIRE ACQ INV IE 03.2000 09/23/2026 0.06%
ALIMENTATION COUCHE-TARD 3.550000 07/26/2027 0.05%
ALLY FINANCIAL INC 05.7500 11/20/2025 0.05%
AMERICAN TOWER CORP 03.3750 10/15/2026 0.05%
AMERICAN TOWER CORP 03.5500 07/15/2027 0.05%
APPLE INC 04.3750 05/13/2045 0.05%
BERKSHIRE HATHAWAY FIN 04.3000 05/15/2043 0.05%
BMIR 2017-1 M1 P/P 144A 03.9158 10/25/2027 0.05%
BP CAPITAL MARKETS PLC USD 03.1190 05/04/2026 0.05%
CAPITAL ONE FINANCIAL CO 04.2000 10/29/2025 0.05%
CBRE SERVICES INC 04.8750 03/01/2026 0.05%
CBS CORP 04.6000 01/15/2045 0.05%
CELANESE US HOLDINGS LLC 04.6250 11/15/2022 0.05%
CHARTER COMM OPT LLC 05.3750 05/01/2047 0.05%
COMCAST CORP 03.9990 11/01/2049 0.05%
CROWN CASTLE INTL CORP 03.6500 09/01/2027 0.05%
CROWN CASTLE INTL CORP 03.8000 02/15/2028 0.05%
EQUINOR ASA USD 05.1000 08/17/2040 0.05%
FNMA FN30 734836 05.0000 08/01/2033 0.05%
JOHN BEAN TECHNOLOGIES CORP 0.05%
KINDER MORGAN INC 03.1500 01/15/2023 0.05%
N TX HWY-TXB-B 06.7180 01/01/2049 0.05%
OMEGA HLTHCARE INVESTORS 04.9500 04/01/2024 0.05%
ONEAMERICA FINL P/P 144A 07.0000 10/15/2033 0.05%
SHIRE ACQ INV IRELAND DA USD 02.8750 09/23/2023 0.05%
VIDEOTRON LTD / LTEE P/P 144A 05.1250 04/15/2027 0.05%
WALGREENS BOOTS ALLIANCE 03.4500 06/01/2026 0.05%
WELLS FARGO & COMPANY 05.8750 12/29/2049 0.05%
WFRBS 2011-C3 D P/P 144A 05.8645 03/15/2044 0.05%
AES CORP/THE 05.1250 09/01/2027 0.04%
APPALACHIAN POWER CO 05.8000 10/01/2035 0.04%
CBS CORP 02.9000 01/15/2027 0.04%
CHENIERE CORP CHRIST 05.1250 06/30/2027 0.04%
CIT GROUP INC. 05.2500 03/07/2025 0.04%
DOLLAR GENERAL CORP 03.2500 04/15/2023 0.04%
ENBRIDGE INC USD 04.2500 12/01/2026 0.04%
ENERGY TRANSFER PARTNERS 06.5000 02/01/2042 0.04%
ENTERPRISE PRODUCTS OPER 04.2500 02/15/2048 0.04%
FNMA FN30 995023 05.5000 08/01/2037 0.04%
GLENCORE FUNDING LLC P/P 144A 04.0000 04/16/2025 0.04%
HCA INC 05.2500 06/15/2026 0.04%
HESS CORP 07.3000 08/15/2031 0.04%
HOSPITALITY PROP TRUST 04.3750 02/15/2030 0.04%
KKR GROUP FINANCE CO P/P 144A 06.3750 09/29/2020 0.04%
NVR INC 03.9500 09/15/2022 0.04%
OMNICOM GP/OMNICOM CAP 03.6000 04/15/2026 0.04%
ONCOR ELECTRIC DELIVERY 04.1000 06/01/2022 0.04%
ONCOR ELECTRIC DELIVERY CO 07.0000 09/01/2022 0.04%
OPORTUN FIN CORP P/P SERIES H PFD 0.04%
PENSKE TRUCK LE P/P 144A 03.4000 11/15/2026 0.04%
S&P GLOBAL INC 04.4000 02/15/2026 0.04%
SW AIRLINES 07-1 TRUST 06.1500 08/01/2022 0.04%
TARGA RESOURCES PART P/P 144A 05.0000 01/15/2028 0.04%
TEACHERS INSUR & ANN P/P 144A 06.8500 12/16/2039 0.04%
TORONTO-DOMINION BANK USD 03.6250 09/15/2031 0.04%
VERIZON COMMUNICATIONS 04.1250 03/16/2027 0.04%
VMWARE INC 03.9000 08/21/2027 0.04%
AIR LEASE CORP 04.6250 10/01/2028 0.03%
AMGEN INC 02.6000 08/19/2026 0.03%
ARCHER-DANIELS-MIDLAND CO 0.03%
AVIATION CAPITAL GRP P/P 144A 07.1250 10/15/2020 0.03%
BANK OF MONTREAL USD 03.8030 12/15/2032 0.03%
BMW US CAPITAL LLC P/P 144A 03.4000 08/13/2021 0.03%
CA TXB-VAR PURP 07.5000 04/01/2034 0.03%
CHARTER COMM OPT LLC 04.9080 07/23/2025 0.03%
CNO FINANCIAL GROUP INC 05.2500 05/30/2025 0.03%
COMM 2014-UBS6 C 04.6122 12/10/2047 0.03%
CVS HEALTH CORP 05.0500 03/25/2048 0.03%
EMERA US FINANCE LP 03.5500 06/15/2026 0.03%
FNMA FN30 555591 05.5000 07/01/2033 0.03%
FNMA FN30 995018 05.5000 06/01/2038 0.03%
GENERAL MOTORS FINL CO 04.3000 07/13/2025 0.03%
INTL FLAVOR & FRAGRANCES 04.4500 09/26/2028 0.03%
KINDER MORGAN ENER PART 03.5000 03/01/2021 0.03%
OH UNIV-TXB-C-BABS 04.9100 06/01/2040 0.03%
PRUDENTIAL FINANCIAL INC 05.6250 06/15/2043 0.03%
PRUDENTIAL FINANCIAL INC 06.6250 06/21/2040 0.03%
QVC INC 04.8500 04/01/2024 0.03%
ROYAL BANK OF CANADA USD 04.6500 01/27/2026 0.03%
AIR LEASE CORP 03.6250 04/01/2027 0.02%
ANHEUSER-BUSCH INBEV FIN 03.6500 02/01/2026 0.02%
ANTHEM INC 04.6250 05/15/2042 0.02%
AUTONATION INC 04.5000 10/01/2025 0.02%
BANK OF AMERICA CORP 06.1000 12/29/2049 0.02%
CBRE SERVICES INC 05.2500 03/15/2025 0.02%
CBS CORP 04.0000 01/15/2026 0.02%
CC HLDG GS V LLC/CRO 03.8490 04/15/2023 0.02%
COMCAST CABLE COMMUNICAT 09.4550 11/15/2022 0.02%
COMCAST CORP 06.5000 11/15/2035 0.02%
CONSOLIDATED EDISON CO O 04.2000 03/15/2042 0.02%
CROWN CASTLE INTL CORP 04.7500 05/15/2047 0.02%
DIAMOND 1 FIN/DIAMON P/P 144A 08.3500 07/15/2046 0.02%
ENERGY TRAN PTNR 07.6000 02/01/2024 0.02%
ENERGY TRANSFER PARTNERS 05.2000 02/01/2022 0.02%
EOG RESOURCES INC 05.6250 06/01/2019 0.02%
FAIRFAX US INC P/P 144A 04.8750 08/13/2024 0.02%
FIFTH THIRD BANCORP 05.1000 12/29/2049 0.02%
FNMA FN30 889982 05.5000 11/01/2038 0.02%
GENERAL MOTORS FINL CO 04.0000 10/06/2026 0.02%
HCA INC 05.5000 06/15/2047 0.02%
HOSPITALITY PROPERTIES T 04.5000 03/15/2025 0.02%
IBERDROLA INTL BV USD 06.7500 07/15/2036 0.02%
IHS MARKIT LTD P/P 144A 04.0000 03/01/2026 0.02%
IPALCO ENTPRS IN 03.7000 09/01/2024 0.02%
JPMORGAN CHASE & CO 06.1000 02/01/2049 0.02%
LIBERTY MUTUAL GROUP P/P 144A 07.8000 03/15/2037 0.02%
MARATHON PETRO CORP 06.5000 03/01/2041 0.02%
MID-AMERICA APARTMENTS 04.3000 10/15/2023 0.02%
NEUBERGER BERMAN GRP P/P 144A 04.8750 04/15/2045 0.02%
OPORTUN FIN CORP P/P 0.02%
OPORTUN FIN F-1 PFD CV P/P 0.02%
OPORTUN FIN G-1 PFD CV P/P 0.02%
PETROLEOS MEXICANOS USD 04.5000 01/23/2026 0.02%
ROGERS COMMUNICATIONS IN USD 04.5000 03/15/2043 0.02%
SABINE PASS LIQUEFACTION 04.2000 03/15/2028 0.02%
SERVICE CORP INTL 04.6250 12/15/2027 0.02%
WILLIAMS COMPANIES INC 03.6000 03/15/2022 0.02%
ABBVIE INC 03.6000 05/14/2025 0.01%
AT&T INC 04.7500 05/15/2046 0.01%
BGC PARTNERS INC 05.1250 05/27/2021 0.01%
CITIGROUP INC 03.6680 07/24/2028 0.01%
COMMONWEALTH EDISON CO 05.8750 02/01/2033 0.01%
CROWN CASTLE INTL CORP 04.8750 04/15/2022 0.01%
CVS PASS-THROUGH P/P 144A 04.7040 01/10/2036 0.01%
HCA INC 05.0000 03/15/2024 0.01%
HILTON DOMESTIC OPERATIN 04.2500 09/01/2024 0.01%
INTERNATIONAL PAPER CO 08.7000 06/15/2038 0.01%
KINDER MORGAN ENER PART 05.4000 09/01/2044 0.01%
KONINKLIJKE KPN N.V. USD 08.3750 10/01/2030 0.01%
L3 TECHNOLOGIES INC 03.8500 12/15/2026 0.01%
MIDAMERICAN FUNDING LLC 06.9270 03/01/2029 0.01%
OMEGA HLTHCARE INVES 04.5000 04/01/2027 0.01%
OPORTUN FIN F PFD CV P/P 0.01%
ROGERS COMMUNICATIONS IN USD 08.7500 05/01/2032 0.01%
TIAAC 2003-1A E 144A 08.0000 12/28/2038 0.01%
UNITED AIR 2014-2 A PTT 03.7500 09/03/2026 0.01%
WESTLAKE CHEMICAL CORP 04.3750 11/15/2047 0.01%
WESTROCK MWV LLC 07.9500 02/15/2031 0.01%
ALLERGAN FUNDING SCS USD 03.4500 03/15/2022 0.00%
CAD/USD 10/17/2018 BANKAM 0.00%
CAD/USD 10/17/2018 BCAP-FX 0.00%
CAD/USD 10/17/2018 GSFX 0.00%
CAD/USD 10/17/2018 JPMCB 0.00%
CAD/USD 10/17/2018 SSBT 0.00%
CAD/USD 10/17/2018 WPAC 0.00%
CANADIAN DOLLAR ACCOUNT 0.00%
CAS 2016-C05 2M1 03.5658 01/25/2029 0.00%
EUR/USD 12/19/2018 BANKAM 0.00%
FIRSTENERGY CORP 03.9000 07/15/2027 0.00%
FIRSTENERGY CORP 04.8500 07/15/2047 0.00%
FPLUS 1997-3 B1 07.7900 11/10/2023 0.00%
GBP/USD 12/19/2018 BANKAM 0.00%
GBP/USD 12/19/2018 BCAP-FX 0.00%
GBP/USD 12/19/2018 CITI 0.00%
GBP/USD 12/19/2018 GSFX 0.00%
GLENCORE FIN CANADA P/P 144A 06.0000 11/15/2041 0.00%
KOREAN WON CALL ACCOUNT 0.00%
OPORTUN FIN A-1 PFD CV P/P 0.00%
OPORTUN FIN B-1 PFD CV P/P 0.00%
OPORTUN FIN C-1 PFD CV P/P 0.00%
OPORTUN FIN D-1 PFD CV P/P 0.00%
OPORTUN FIN E-1 PFD CV P/P 0.00%
POUND STERLING CALL ACCOUNT 0.00%
S&P500 EMINI FUT DEC18 ESZ8 0.00%
WYNDHAM DESTINATIONS INC 05.7500 04/01/2027 0.00%
FNMA FN30 TBA 03.0000 10/01/2048 -1.30%

Prior top 10 holdings

Top 10 holdings as of 10/31/18
1: Fnma Fn30 Tba 04.5000 11/01/2048 2.92%
2: Fnma Fn30 Tba 04.0000 11/01/2048 2.86%
3: Us Treasury N/B 01.5000 05/31/2020 2.52%
4: Microsoft 2.36%
5: Apple 2.11%
6: Us Treasury N/B 02.0000 11/30/2020 2.07%
7: Alphabet 1.94%
8: Amazon 1.75%
9: Bank of America 1.30%
10: Us Treasury N/B 02.2500 02/15/2021 1.27%
Holdings represent 21.10% of portfolio
Top 10 holdings as of 09/30/18
1: Fnma Fn30 Tba 04.5000 10/01/2048 2.80%
2: Microsoft 2.50%
3: Us Treasury N/B 01.5000 05/31/2020 2.39%
4: Apple 2.15%
5: Amazon 2.15%
6: Alphabet 2.08%
7: Us Treasury N/B 02.0000 11/30/2020 1.96%
8: Bank of America 1.44%
9: Fnma Fn30 Tba 04.0000 11/01/2048 1.37%
10: Visa 1.26%
Holdings represent 20.10% of portfolio
Top 10 holdings as of 08/31/18
1: Fnma Fn30 Tba 04.5000 10/01/2048 2.84%
2: Us Treasury N/B 01.5000 05/31/2020 2.42%
3: Apple 2.24%
4: Microsoft 2.20%
5: Amazon 2.18%
6: Alphabet 2.15%
7: Us Treasury N/B 02.0000 11/30/2020 1.98%
8: Bank of America 1.53%
9: Fnma Fn30 Tba 04.0000 10/01/2048 1.39%
10: Us Treasury N/B 02.7500 08/15/2042 1.29%
Holdings represent 20.22% of portfolio
Top 10 holdings as of 07/31/18
1: Fnma Fn30 Tba 04.5000 08/01/2048 2.91%
2: Us Treasury N/B 01.5000 05/31/2020 2.46%
3: Alphabet 2.18%
4: Microsoft 2.12%
5: Us Treasury N/B 02.0000 11/30/2020 2.02%
6: Amazon 1.96%
7: Apple 1.91%
8: Bank of America 1.56%
9: Fnma Fn30 Tba 04.0000 08/01/2048 1.42%
10: Us Treasury N/B 02.7500 08/15/2042 1.32%
Holdings represent 19.86% of portfolio

Portfolio Composition as of 10/31/18

Common stock 60.75%
Corporate bonds and notes 15.21%
Treasury 11.12%
Agency pass-through 10.24%
Cash and net other assets 1.38%
Commercial MBS 0.66%
Agency 0.43%
Municipal bonds 0.12%
Agency CMO 0.06%
Emerging-market bonds 0.03%

Portfolio allocations will vary over time. The unclassified sector (where applicable) includes exchange traded funds and other securities not able to be classified by sector.

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.The use of derivatives involves additional risks, such as the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations.Although value investing targets stocks believed to be priced too low, there is no guarantee they will appreciate.

Top Industry Sectors as of 10/31/18

Information technology 17.33%
Health care 13.97%
Financials 13.86%
Communication services 11.25%
Consumer discretionary 10.68%
Industrials 9.54%
Consumer staples 7.95%
Energy 5.97%
Utilities 3.96%
 
Other
5.49%
Materials 3.25%
Cash and net other assets 1.38%
Real estate 0.86%