Putnam Hartford 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 08/31/18

Category: BALANCED FUNDS

  Percentile ranking Rank/Funds in category
10 yrs. 63% 73/115
1 yr. 20% 30/150
3 yrs. 18% 23/134
5 yrs. 18% 23/131

Risk characteristics as of 08/31/18

Avg. Eff. Maturity 8.64
Avg. Price --
Avg. Eff. Duration 5.85
Avg. Coupon --
Avg. Yield to Maturity --
Alpha (%) -1.00
Beta 0.65
R squared 0.94
Standard deviation (3 yrs.) 6.26

Maturity details

0 to 1 yr. 4.87%
1 to 5 yrs. 30.47%
5 to 10 yrs. 46.87%
10 to 15 yrs. 2.82%
Over 15 yrs. 14.97%

Quality ratings

AAA 56.81%
AA 2.95%
A 12.66%
BBB 22.34%
BB 2.34%
CCC and Below 0.04%
Not Rated 2.86%

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 08/31/18

Fiscal Year End December
Asset Class Putnam Hartford Capital Manager
Subaccount Status Open to new investors
Number of issues 406
Turnover (fiscal year end) 191%
Net Assets $146M
Inception Date 05/01/98

Holdings

Top 10 holdings as of 08/31/18

Fnma Fn30 Tba 04.5000 10/01/2048 2.84%
Us Treasury N/B 01.5000 05/31/2020 2.42%
Apple 2.24%
Microsoft 2.20%
Amazon 2.18%
Alphabet 2.15%
Us Treasury N/B 02.0000 11/30/2020 1.98%
Bank of America 1.53%
Fnma Fn30 Tba 04.0000 10/01/2048 1.39%
Us Treasury N/B 02.7500 08/15/2042 1.29%
Top 10 holdings, total: 20.22%

Equity Holdings as of 06/30/18

MICROSOFT CORP 2.01%
ALPHABET INC-CL A 1.93%
AMAZON.COM INC 1.91%
APPLE INC 1.90%
BANK OF AMERICA CORP 1.59%
FACEBOOK INC-A 1.40%
VISA INC-CLASS A SHARES 1.17%
CITIGROUP INC 1.10%
HOME DEPOT INC 1.10%
COCA-COLA CO/THE 0.97%
HONEYWELL INTERNATIONAL INC 0.93%
QUALCOMM INC 0.91%
ACTIVISION BLIZZARD INC 0.87%
DANAHER CORP 0.80%
DOWDUPONT INC 0.79%
GOLDMAN SACHS GROUP INC 0.78%
JPMORGAN CHASE & CO 0.77%
KKR & CO LP 0.77%
BECTON DICKINSON AND CO 0.76%
AT&T INC 0.74%
UNITEDHEALTH GROUP INC 0.74%
EMERSON ELECTRIC CO 0.72%
BP PLC 0.71%
VERIZON COMMUNICATIONS INC 0.70%
BOEING CO/THE 0.69%
DXC TECHNOLOGY CO 0.68%
GENERAL MOTORS CO 0.68%
PRUDENTIAL PLC 0.67%
GILEAD SCIENCES INC 0.65%
PROCTER & GAMBLE CO/THE 0.63%
MERCK & CO. INC. 0.62%
E*TRADE FINANCIAL CORPORATION 0.61%
EXXON MOBIL CORP 0.61%
APPLIED MATERIALS INC 0.59%
KINDER MORGAN INC 0.58%
RAYTHEON COMPANY 0.55%
TOTAL SA 0.55%
PEPSICO INC 0.54%
BOOKING HOLDINGS INC 0.53%
FORTIVE CORP 0.53%
NORFOLK SOUTHERN CORP 0.52%
ON SEMICONDUCTOR CORP 0.52%
ROPER TECHNOLOGIES INC 0.51%
AMERICAN ELECTRIC POWER 0.50%
CENOVUS ENERGY INC 0.50%
BLACKROCK INC 0.49%
BRISTOL-MYERS SQUIBB CO 0.48%
JOHNSON & JOHNSON 0.48%
CIGNA CORP 0.47%
SHERWIN-WILLIAMS CO/THE 0.47%
TEXTRON INC 0.45%
ASSURED GUARANTY LTD 0.44%
BOSTON SCIENTIFIC CORP 0.44%
WASTE CONNECTIONS INC 0.43%
CHARTER COMMUNICATIONS INC-A 0.42%
EXELON CORP 0.42%
TEXAS INSTRUMENTS INC 0.42%
WALMART INC 0.41%
COSTCO WHOLESALE CORP 0.40%
ORACLE CORP 0.39%
NCSOFT CORP 0.38%
PFIZER INC 0.38%
MCCORMICK & CO-NON VTG SHRS 0.37%
AMGEN INC 0.36%
NRG ENERGY INC 0.36%
RAYMOND JAMES FINANCIAL INC 0.36%
INTEL CORP 0.35%
COMCAST CORP-CLASS A 0.34%
HILTON WORLDWIDE HOLDINGS IN 0.34%
NEXTERA ENERGY INC 0.34%
SALESFORCE.COM INC 0.34%
TJX COMPANIES INC 0.34%
VERTEX PHARMACEUTICALS INC 0.34%
ALEXION PHARMACEUTICALS INC 0.33%
AMERICAN INTERNATIONAL GROUP 0.32%
CHUBB LTD 0.31%
FMC CORP 0.31%
TENCENT HOLDINGS LTD 0.31%
KELLOGG CO 0.30%
NETEASE INC-ADR 0.30%
INTERCONTINENTAL EXCHANGE IN 0.29%
YELLOW CAKE PLC 144A 0.29%
CHIPOTLE MEXICAN GRILL INC 0.28%
CONOCOPHILLIPS 0.28%
GAMING AND LEISURE PROPERTIE 0.28%
ALIBABA GROUP HOLDING-SP ADR 0.27%
BAXTER INTERNATIONAL INC 0.27%
INTUITIVE SURGICAL INC 0.27%
JAZZ PHARMACEUTICALS PLC 0.27%
NXP SEMICONDUCTORS NV 0.27%
ANADARKO PETROLEUM CORP 0.26%
DOVER CORP 0.26%
WYNN RESORTS LTD 0.26%
YUM CHINA HOLDINGS INC 0.26%
CAIRN ENERGY PLC 0.25%
FIDELITY NATIONAL INFO SERV 0.25%
KROGER CO 0.25%
WALGREENS BOOTS ALLIANCE INC 0.25%
AMERICAN TOWER CORP 0.24%
DISH NETWORK CORP-A 0.24%
DOMINION ENERGY INC 0.23%
NOBLE ENERGY INC 0.23%
EVERBRIDGE INC 0.22%
DUKE ENERGY CORP 0.21%
METTLER-TOLEDO INTERNATIONAL 0.21%
O'REILLY AUTOMOTIVE INC 0.21%
SEVEN GENERATIONS ENERGY - A 0.20%
CHURCH & DWIGHT CO INC 0.19%
BALL CORP 0.18%
DEERE & CO 0.18%
INVESCO LTD 0.18%
NIKE INC -CL B 0.18%
SUMMIT MATERIALS INC -CL A 0.18%
ADVANCE AUTO PARTS 0.17%
GODADDY INC - CLASS A 0.17%
MCKESSON CORP 0.16%
WALT DISNEY CO/THE 0.16%
ALCOA CORP 0.15%
BJ'S WHOLESALE CLUB HOLDINGS 0.15%
INVESTMENT TECHNOLOGY GROUP 0.15%
RESTAURANT BRANDS INTERN 0.15%
BIOGEN INC 0.13%
BURLINGTON STORES INC 0.13%
DENTSPLY SIRONA INC 0.13%
AMEREN CORPORATION 0.11%
CONSTELLATION BRANDS INC-A 0.11%
EDISON INTERNATIONAL 0.11%
COOPER COS INC/THE 0.09%
KRAFT HEINZ CO/THE 0.09%
SMITH (A.O.) CORP 0.08%
W.R. GRACE & CO 0.08%
ECOLAB INC 0.06%
OPORTUN FIN CORP P/P SERIES H PFD 0.04%
P G & E CORP 0.04%
ARCHER-DANIELS-MIDLAND CO 0.03%
PPG INDUSTRIES INC 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%
KION GROUP AG 0.01%
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 06/30/18

FNMA FN30 TBA 04.5000 08/01/2047 2.97%
US TREASURY N/B 02.0000 11/30/2020 2.06%
MICROSOFT CORP 2.01%
ALPHABET INC-CL A 1.93%
AMAZON.COM INC 1.91%
APPLE INC 1.90%
US TREASURY N/B 01.5000 05/31/2020 1.90%
BANK OF AMERICA CORP 1.59%
FNMA FN30 TBA 04.0000 07/01/2048 1.45%
FACEBOOK INC-A 1.40%
US TREASURY N/B 02.7500 08/15/2042 1.37%
FNMA FN40 BF0169 3.500000 01/01/2057 1.29%
US TREASURY N/B 02.0000 02/15/2022 1.26%
US TREASURY N/B 02.1250 12/31/2022 1.25%
US TREASURY N/B 01.8750 11/30/2021 1.24%
VISA INC-CLASS A SHARES 1.17%
CITIGROUP INC 1.10%
HOME DEPOT INC 1.10%
US TREASURY N/B 01.0000 08/31/2019 1.06%
COCA-COLA CO/THE 0.97%
HONEYWELL INTERNATIONAL INC 0.93%
QUALCOMM INC 0.91%
ACTIVISION BLIZZARD INC 0.87%
DANAHER CORP 0.80%
DOWDUPONT INC 0.79%
GOLDMAN SACHS GROUP INC 0.78%
JPMORGAN CHASE & CO 0.77%
KKR & CO LP 0.77%
BECTON DICKINSON AND CO 0.76%
AT&T INC 0.74%
UNITEDHEALTH GROUP INC 0.74%
EMERSON ELECTRIC CO 0.72%
GNMA GII30 TBA 03.5000 08/01/2048 0.72%
BP PLC 0.71%
FNMA FN30 TBA 03.5000 08/01/2048 0.71%
GNMA GII30 TBA 03.0000 07/01/2048 0.70%
VERIZON COMMUNICATIONS INC 0.70%
BOEING CO/THE 0.69%
DXC TECHNOLOGY CO 0.68%
GENERAL MOTORS CO 0.68%
PRUDENTIAL PLC 0.67%
US TREASURY N/B 01.1250 12/31/2019 0.66%
GILEAD SCIENCES INC 0.65%
PROCTER & GAMBLE CO/THE 0.63%
MERCK & CO. INC. 0.62%
E*TRADE FINANCIAL CORPORATION 0.61%
EXXON MOBIL CORP 0.61%
APPLIED MATERIALS INC 0.59%
FNMA FN30 BC1155 03.0000 06/01/2046 0.58%
KINDER MORGAN INC 0.58%
RAYTHEON COMPANY 0.55%
TOTAL SA 0.55%
PEPSICO INC 0.54%
BOOKING HOLDINGS INC 0.53%
FORTIVE CORP 0.53%
NORFOLK SOUTHERN CORP 0.52%
ON SEMICONDUCTOR CORP 0.52%
ROPER TECHNOLOGIES INC 0.51%
AMERICAN ELECTRIC POWER 0.50%
CENOVUS ENERGY INC 0.50%
BLACKROCK INC 0.49%
BRISTOL-MYERS SQUIBB CO 0.48%
JOHNSON & JOHNSON 0.48%
CIGNA CORP 0.47%
SHERWIN-WILLIAMS CO/THE 0.47%
TEXTRON INC 0.45%
ASSURED GUARANTY LTD 0.44%
BOSTON SCIENTIFIC CORP 0.44%
INTL BK RECON & DEVELOP 07.6250 01/19/2023 0.44%
WASTE CONNECTIONS INC 0.43%
CHARTER COMMUNICATIONS INC-A 0.42%
EXELON CORP 0.42%
TEXAS INSTRUMENTS INC 0.42%
WALMART INC 0.41%
COSTCO WHOLESALE CORP 0.40%
ORACLE CORP 0.39%
NCSOFT CORP 0.38%
PFIZER INC 0.38%
MCCORMICK & CO-NON VTG SHRS 0.37%
AMGEN INC 0.36%
NRG ENERGY INC 0.36%
RAYMOND JAMES FINANCIAL INC 0.36%
INTEL CORP 0.35%
METLIFE CAP TRST IV P/P 144A 07.8750 12/15/2037 0.35%
COMCAST CORP-CLASS A 0.34%
HILTON WORLDWIDE HOLDINGS IN 0.34%
NEXTERA ENERGY INC 0.34%
SALESFORCE.COM INC 0.34%
TJX COMPANIES INC 0.34%
VERTEX PHARMACEUTICALS INC 0.34%
ALEXION PHARMACEUTICALS INC 0.33%
AMERICAN INTERNATIONAL GROUP 0.32%
CHUBB LTD 0.31%
FMC CORP 0.31%
POUND STERLING CALL ACCOUNT 0.31%
TENCENT HOLDINGS LTD 0.31%
US TREASURY N/B 03.0000 02/15/2047 0.31%
KELLOGG CO 0.30%
NETEASE INC-ADR 0.30%
INTERCONTINENTAL EXCHANGE IN 0.29%
YELLOW CAKE PLC 144A 0.29%
CHIPOTLE MEXICAN GRILL INC 0.28%
CONOCOPHILLIPS 0.28%
GAMING AND LEISURE PROPERTIE 0.28%
ALIBABA GROUP HOLDING-SP ADR 0.27%
BAXTER INTERNATIONAL INC 0.27%
INTUITIVE SURGICAL INC 0.27%
JAZZ PHARMACEUTICALS PLC 0.27%
NXP SEMICONDUCTORS NV 0.27%
ANADARKO PETROLEUM CORP 0.26%
DOVER CORP 0.26%
UBS AG REGS 05.1250 05/15/2024 0.26%
WYNN RESORTS LTD 0.26%
YUM CHINA HOLDINGS INC 0.26%
CAIRN ENERGY PLC 0.25%
FIDELITY NATIONAL INFO SERV 0.25%
KROGER CO 0.25%
WALGREENS BOOTS ALLIANCE INC 0.25%
AMERICAN TOWER CORP 0.24%
DISH NETWORK CORP-A 0.24%
DOMINION ENERGY INC 0.23%
JPMORGAN CHASE & CO 03.9640 11/15/2048 0.23%
NOBLE ENERGY INC 0.23%
EVERBRIDGE INC 0.22%
HARTFORD FINL SVCS GRP 06.6250 03/30/2040 0.22%
DUKE ENERGY CORP 0.21%
GNMA GII30 OBD1715 03.5000 11/20/2047 0.21%
METTLER-TOLEDO INTERNATIONAL 0.21%
O'REILLY AUTOMOTIVE INC 0.21%
WEC ENERGY GROUP INC 04.4550 05/15/2067 0.21%
CREDIT SUISSE GRP AG P/P 144A 04.2820 01/09/2028 0.20%
GNMA GII30 OBD1716 03.5000 11/20/2047 0.20%
SEVEN GENERATIONS ENERGY - A 0.20%
CHURCH & DWIGHT CO INC 0.19%
SANTANDER UK PLC P/P 144A 05.0000 11/07/2023 0.19%
BALL CORP 0.18%
DEERE & CO 0.18%
INVESCO LTD 0.18%
NIKE INC -CL B 0.18%
SUMMIT MATERIALS INC -CL A 0.18%
ADVANCE AUTO PARTS 0.17%
ANHEUSER-BUSCH INBEV FIN 04.9000 02/01/2046 0.17%
CITIGROUP INC 04.7500 05/18/2046 0.17%
ENERGY TRANSFER PARTNERS 06.6250 02/15/2028 0.17%
GODADDY INC - CLASS A 0.17%
GOLDMAN SACHS GROUP INC 03.8500 01/26/2027 0.17%
MASS MUTUAL LIFE P/P 144A 08.8750 06/01/2039 0.17%
GOLDMAN SACHS GROUP INC 04.2230 05/01/2029 0.16%
MCKESSON CORP 0.16%
WALT DISNEY CO/THE 0.16%
ALCOA CORP 0.15%
BJ'S WHOLESALE CLUB HOLDINGS 0.15%
BPCE SA P/P 144A 05.1500 07/21/2024 0.15%
ING BANK NV P/P 144A 05.8000 09/25/2023 0.15%
INVESTMENT TECHNOLOGY GROUP 0.15%
MSC 2012-C4 D P/P 144A 05.6009 03/15/2045 0.15%
RESTAURANT BRANDS INTERN 0.15%
ASHTEAD CAPITAL INC P/P 144A 04.3750 08/15/2027 0.14%
ERAC USA FINANCE LLC P/P 144A 07.0000 10/15/2037 0.14%
SALESFORCE.COM INC 03.7000 04/11/2028 0.14%
UNITEDHEALTH GROUP INC 03.8500 06/15/2028 0.14%
WESTROCK MWV LLC 08.2000 01/15/2030 0.14%
AON PLC USD 04.2500 12/12/2042 0.13%
BANK OF AMERICA CORP 06.1100 01/29/2037 0.13%
BIOGEN INC 0.13%
BURLINGTON STORES INC 0.13%
DENTSPLY SIRONA INC 0.13%
GEORGIA-PACIFIC LLC 07.7500 11/15/2029 0.13%
MAPLE ESCROW SUB P/P 144A 04.5970 05/25/2028 0.13%
ROCKWELL COLLINS INC 04.3500 04/15/2047 0.13%
21ST CENTURY FOX AMERICA 07.7500 01/20/2024 0.12%
AT&T INC P/P 144A 04.1000 02/15/2028 0.12%
CF INDUSTRIES INC P/P 144A 04.5000 12/01/2026 0.12%
CVS PASS-THRU TRUST P/P 144A 07.5070 01/10/2032 0.12%
ECOLAB INC 03.2500 12/01/2027 0.12%
FIRSTENERGY TRANSMIS P/P 144A 05.4500 07/15/2044 0.12%
WILLIAMS PARTNERS LP 04.3000 03/04/2024 0.12%
AMEREN CORPORATION 0.11%
BRDCOM CRP / FIN 03.8750 01/15/2027 0.11%
CONSTELLATION BRANDS INC-A 0.11%
EDISON INTERNATIONAL 0.11%
GSMS 2014-GC22 C 04.8003 06/10/2047 0.11%
RABOBANK NEDERLAND P/P 144A 11.0000 12/29/2049 0.11%
AMERICAN INTL GROUP 08.1750 05/15/2058 0.10%
DIAMOND 1 FIN/DIAMON P/P 144A 05.4500 06/15/2023 0.10%
DIGITAL REALTY TRUST LP 04.4500 07/15/2028 0.10%
IHS MARKIT LTD P/P 144A 04.7500 02/15/2025 0.10%
PRUDENTIAL FINANCIAL INC 05.2000 03/15/2044 0.10%
REPUBLIC SERVICES INC 03.9500 05/15/2028 0.10%
SABINE PASS LIQUEF 05.0000 03/15/2027 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%
WP CAREY INC 04.6000 04/01/2024 0.10%
BECTON DICKINSON AND CO 04.6690 06/06/2047 0.09%
CGCMT 2014-GC21 C 04.7800 05/10/2047 0.09%
COMCAST CORP 03.1500 03/01/2026 0.09%
CONCHO RESOURCES INC 03.7500 10/01/2027 0.09%
COOPER COS INC/THE 0.09%
DUKE REALTY LP 04.3750 06/15/2022 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%
KRAFT HEINZ CO/THE 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%
SIRIUS XM RADIO INC P/P 144A 05.0000 08/01/2027 0.09%
STANDARD IND INC P/P 144A 05.0000 02/15/2027 0.09%
TRANSCANADA TRUST USD 05.3000 03/15/2077 0.09%
WESTERN DIGITAL CORP 04.7500 02/15/2026 0.09%
AIR LEASE CORP 03.0000 09/15/2023 0.08%
AMAZON.COM INC 04.0500 08/22/2047 0.08%
BECTON DICKINSON AND CO 03.7000 06/06/2027 0.08%
CHARTER COMM OPT LLC 06.4840 10/23/2045 0.08%
CITIGROUP INC 04.4500 09/29/2027 0.08%
CROWN CASTLE TOWERS P/P 144A 04.8830 08/15/2020 0.08%
CVS HEALTH CORP 04.7800 03/25/2038 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%
ORACLE CORP 02.6500 07/15/2026 0.08%
OSHKOSH CORP 04.6000 05/15/2028 0.08%
SHERWIN-WILLIAMS CO 03.4500 06/01/2027 0.08%
SMITH (A.O.) CORP 0.08%
W.R. GRACE & CO 0.08%
WEYERHAEUSER CO 07.3750 03/15/2032 0.08%
WILLIS TOWERS WATSON PLC USD 05.7500 03/15/2021 0.08%
ALPHABET INC 01.9980 08/15/2026 0.07%
AMAZON.COM INC 03.1500 08/22/2027 0.07%
ARC PROP OPER PART L 04.6000 02/06/2024 0.07%
AUTONATION INC. 05.5000 02/01/2020 0.07%
CANTOR FITZGERALD LP P/P 144A 06.5000 06/17/2022 0.07%
CGCMT 2014-GC21 AS 04.0260 05/10/2047 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%
ERAC USA FINANCE LLC P/P 144A 05.6250 03/15/2042 0.07%
FORD MOTOR COMPANY 04.3460 12/08/2026 0.07%
GLAXOSMITHKLINE CAP INC 03.8750 05/15/2028 0.07%
GNMA GII30 OBD1714 03.5000 11/20/2047 0.07%
KRAFT HEINZ FOODS CO 04.3750 06/01/2046 0.07%
NEWELL BRANDS INC 04.2000 04/01/2026 0.07%
SHIRE ACQ INV IE 03.2000 09/23/2026 0.07%
VODAFONE GROUP PLC USD 04.3750 05/30/2028 0.07%
WFRBS 2013-UBS1 AS 04.3060 03/15/2046 0.07%
AMERICAN TOWER CORP 03.5500 07/15/2027 0.06%
AMGEN INC 04.6630 06/15/2051 0.06%
BMIR 2017-1 M1 P/P 144A 03.7911 10/25/2027 0.06%
CAPITAL ONE FINANCIAL CO 04.2000 10/29/2025 0.06%
COX COMM INC P/P 144A 03.5000 08/15/2027 0.06%
CROWN CASTLE INTL CORP 03.6500 09/01/2027 0.06%
DIAGEO INVESTMENT CORP 08.0000 09/15/2022 0.06%
EASTMAN CHEMICAL CO 03.8000 03/15/2025 0.06%
ECOLAB INC 0.06%
EQUINOR ASA USD 05.1000 08/17/2040 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%
N TX HWY-TXB-B 06.7180 01/01/2049 0.06%
NEXTERA ENERGY CAPITAL 04.8000 12/01/2077 0.06%
ORACLE CORP 03.2500 11/15/2027 0.06%
VIDEOTRON LTD / LTEE P/P 144A 05.1250 04/15/2027 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%
APPALACHIAN POWER CO 05.8000 10/01/2035 0.05%
APPLE INC 04.3750 05/13/2045 0.05%
BERKSHIRE HATHAWAY FIN 04.3000 05/15/2043 0.05%
BP CAPITAL MARKETS PLC USD 03.1190 05/04/2026 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%
CHENIERE CORP CHRIST 05.1250 06/30/2027 0.05%
COMCAST CORP 03.9990 11/01/2049 0.05%
CROWN CASTLE INTL CORP 03.8000 02/15/2028 0.05%
FNMA FN30 734836 05.0000 08/01/2033 0.05%
FNMA FN30 995023 05.5000 08/01/2037 0.05%
HESS CORP 07.3000 08/15/2031 0.05%
KINDER MORGAN INC 03.1500 01/15/2023 0.05%
KKR GROUP FINANCE CO P/P 144A 06.3750 09/29/2020 0.05%
KRAFT HEINZ FOODS CO 06.8750 01/26/2039 0.05%
NVR INC 03.9500 09/15/2022 0.05%
OMEGA HLTHCARE INVESTORS 04.9500 04/01/2024 0.05%
ONCOR ELECTRIC DELIVERY CO 07.0000 09/01/2022 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%
SW AIRLINES 07-1 TRUST 06.1500 08/01/2022 0.05%
TORONTO-DOMINION BANK USD 03.6250 09/15/2031 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 05.8471 03/15/2044 0.05%
AES CORP/THE 05.1250 09/01/2027 0.04%
CBS CORP 02.9000 01/15/2027 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 555591 05.5000 07/01/2033 0.04%
GLENCORE FUNDING LLC P/P 144A 04.0000 04/16/2025 0.04%
HCA INC 05.2500 06/15/2026 0.04%
HOSPITALITY PROP TRUST 04.3750 02/15/2030 0.04%
HOST HOTELS & RESORTS LP 06.0000 10/01/2021 0.04%
MOODY'S CORPORATION 03.2500 01/15/2028 0.04%
OMNICOM GP/OMNICOM CAP 03.6000 04/15/2026 0.04%
ONCOR ELECTRIC DELIVERY 04.1000 06/01/2022 0.04%
OPORTUN FIN CORP P/P SERIES H PFD 0.04%
P G & E CORP 0.04%
PENSKE TRUCK LE P/P 144A 03.4000 11/15/2026 0.04%
QVC INC 04.8500 04/01/2024 0.04%
S&P GLOBAL INC 04.4000 02/15/2026 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%
VERIZON COMMUNICATIONS 04.1250 03/16/2027 0.04%
VMWARE INC 03.9000 08/21/2027 0.04%
WYNDHAM DESTINATIONS INC 04.5000 04/01/2027 0.04%
21ST CENTURY FOX AMERICA 07.8500 03/01/2039 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%
CA TXB-VAR PURP 07.5000 04/01/2034 0.03%
CANADIAN NATL RESOURCES USD 03.8500 06/01/2027 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 04.6125 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%
ENERGY TRANSFER PARTNERS 05.2000 02/01/2022 0.03%
FAIRFAX US INC P/P 144A 04.8750 08/13/2024 0.03%
FNMA FN30 889982 05.5000 11/01/2038 0.03%
FNMA FN30 995018 05.5000 06/01/2038 0.03%
GENERAL MOTORS FINL CO 04.3000 07/13/2025 0.03%
IBERDROLA INTL BV USD 06.7500 07/15/2036 0.03%
IHS MARKIT LTD P/P 144A 04.0000 03/01/2026 0.03%
KINDER MORGAN ENER PART 03.5000 03/01/2021 0.03%
NORTHROP GRUMMAN SYSTEMS 07.8750 03/01/2026 0.03%
OH UNIV-TXB-C-BABS 04.9100 06/01/2040 0.03%
PETROLEOS MEXICANOS USD 04.5000 01/23/2026 0.03%
PPG INDUSTRIES INC 0.03%
PRUDENTIAL FINANCIAL INC 05.6250 06/15/2043 0.03%
PRUDENTIAL FINANCIAL INC 06.6250 06/21/2040 0.03%
ROYAL BANK OF CANADA USD 04.6500 01/27/2026 0.03%
VERIZON COMM 04.5220 09/15/2048 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%
EOG RESOURCES INC 05.6250 06/01/2019 0.02%
FIFTH THIRD BANCORP 05.1000 12/29/2049 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%
HOST HOTELS & RESORTS LP 05.2500 03/15/2022 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%
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 PARTNERS LP 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%
CAS 2016-C05 2M1 03.4411 01/25/2029 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%
KION GROUP AG 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%
WFRBS 2014-C19 C 04.6460 03/15/2047 0.01%
ALLERGAN FUNDING SCS USD 03.4500 03/15/2022 0.00%
CAD/USD 07/18/2018 BANKAM 0.00%
CAD/USD 07/18/2018 BCAP-FX 0.00%
CAD/USD 07/18/2018 GSFX 0.00%
CAD/USD 07/18/2018 JPMCB 0.00%
CAD/USD 07/18/2018 SSBT 0.00%
CAD/USD 07/18/2018 WPAC 0.00%
EUR/USD 09/19/2018 BANKAM 0.00%
EUR/USD 09/19/2018 GSFX 0.00%
EUR/USD 09/19/2018 UBS 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 09/19/2018 BCAP-FX 0.00%
GBP/USD 09/19/2018 CITI 0.00%
GBP/USD 09/19/2018 GSFX 0.00%
GLENCORE FIN CANADA P/P 144A 06.0000 11/15/2041 0.00%
ILS/USD 07/18/2018 SSBT 0.00%
KRAFT HEINZ FOODS CO 06.5000 02/09/2040 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%
EUR/USD 09/19/2018 CITI -0.01%
S&P500 EMINI FUT SEP18 ESU8 -0.01%
CANADIAN DOLLAR ACCOUNT -0.09%
THE EURO EUR CALL ACCOUNT -0.21%
FNMA FN30 TBA 03.0000 08/01/2048 -1.38%

Prior top 10 holdings

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
Top 10 holdings as of 06/30/18
1: Fnma Fn30 Tba 04.5000 08/01/2048 2.97%
2: Us Treasury N/B 02.0000 11/30/2020 2.06%
3: Microsoft 2.01%
4: Alphabet 1.93%
5: Amazon 1.91%
6: Us Treasury N/B 01.5000 05/31/2020 1.90%
7: Apple 1.90%
8: Bank Of America 1.59%
9: Fnma Fn30 Tba 04.0000 07/01/2048 1.45%
10: Facebook 1.40%
Holdings represent 19.12% of portfolio
Top 10 holdings as of 05/31/18
1: Fnma Fn30 Tba 04.5000 06/01/2048 2.99%
2: Us Treasury N/B 02.0000 11/30/2020 2.07%
3: Microsoft 2.02%
4: Apple 1.92%
5: Us Treasury N/B 01.5000 05/31/2020 1.91%
6: Alphabet 1.89%
7: Amazon 1.84%
8: Bank of America 1.65%
9: Fnma Fn30 Tba 04.0000 07/01/2048 1.46%
10: Facebook 1.39%
Holdings represent 19.14% of portfolio

Portfolio Composition as of 08/31/18

Common stock 63.57%
Corporate bonds and notes 13.46%
Treasury 11.67%
Agency pass-through 7.34%
Cash and net other assets 2.71%
Commercial MBS 0.64%
Agency 0.41%
Municipal bonds 0.12%
Agency CMO 0.06%
Emerging-market bonds 0.02%

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 08/31/18

Information technology 24.73%
Financials 13.93%
Health care 13.79%
Consumer discretionary 12.74%
Industrials 9.61%
Consumer staples 6.72%
Energy 5.74%
Utilities 3.60%
Materials 3.47%
 
Other
5.67%
Cash and net other assets 2.71%
Telecommunication services 2.19%
Real estate 0.77%