Putnam Hartford Capital Manager

Putnam American Government Subaccount

The subaccount seeks high current income by investing in U.S. government securities with the preservation of capital as its secondary objective.

  • Highlights
  • Holdings

Fund description

The subaccount typically divides its assets between U.S. Treasury securities and Government National Mortgage Association certificates (Ginnie Maes). The fund takes a slightly more aggressive approach to total return by investing in longer-term securities. Investors should have an investment horizon of at least three years to give their investment the full potential to benefit from a typical interest-rate cycle.

Sales story

Pursuing income and capital preservation with a range of government bonds High credit quality: The fund invests mainly in government bonds with the highest credit rating, AAA.Diversified approach: By including investments in government, mortgage-backed, and asset-backed securities, the fund seeks an attractive level of income along with capital preservation.Leading research: The fund's managers use proprietary models to evaluate mortgage-backed bonds and to manage the fund's interest rate risk.

Management team

Lipper ranking ‡ as of 07/31/17

Category: General U.S. Government Funds

  Percentile ranking Rank/Funds in category
10 yrs. 17% 7/42
1 yr. 38% 21/55
3 yrs. 95% 52/54
5 yrs. 65% 33/50

Risk characteristics as of 07/31/17

Avg. Eff. Maturity 12.83
Avg. Price 88.73
Avg. Eff. Duration 5.12
Avg. Coupon 4.16
Avg. Yield to Maturity 3.27
Alpha (%) --
Beta 0.38
R squared 0.56
Standard deviation (3 yrs.) 1.68

Maturity details

0 to 1 yr. -9.44%
1 to 5 yrs. 0.38%
5 to 10 yrs. 81.26%
10 to 15 yrs. 13.65%
Over 15 yrs. 14.15%

Quality ratings

AAA 108.54%
A 9.95%
Not Rated -18.49%

Maturity detail includes only cash bonds and cash equivalents.

Mutual funds that invest in government securities are not guaranteed. Mortgage backed securities are subject to prepayment risk. 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.

Credit qualities are shown as a percentage of net assets. A bond rated Baa or higher (Prime-3 or higher, for short-term debt) is considered investment grade. This chart reflects the highest security rating provided by one or more of Standard & Poor's, Moody's and Fitch. Short-term cash bonds rated A-1+ are included in the AAA-rating category. Ratings and portfolio credit quality will vary over time. Credit quality includes the fixed-income portion of the portfolio. Derivative instruments, including currency forwards, are only included to the extent of any unrealized gain or loss on such instruments and are shown in the not-rated category. Cash is also shown in the not-rated category. The fund itself has not been rated by an independent rating agency.

‡ 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.