As of September 14, 2018, Putnam VT Capital Opportunities Fund was renamed Putnam VT Small Cap Growth Fund.

Putnam Hartford Capital Manager

Putnam Small Cap Growth Subaccount

The subaccount seeks long-term growth of capital.

Fund description

The subaccount invests primarily in small and midsize companies, seeking hidden opportunities in stocks with growth potential that has been relatively unnoticed by investors. The portfolio can own growth and value stocks without a bias toward either style.

Sales story

Seeking opportunities in small and midsize companiesSmaller companies: Often overlooked by Wall Street analysts, the stocks of smaller companies can represent attractive opportunities to firms with strong research capabilities.A flexible strategy: The fund can own growth- or value-style stocks, allowing it to seek opportunities regardless of which style is in favor.Differentiated research: The portfolio managers select stocks in a collaborative effort that emphasizes non-consensus critical thinking.

Management team

Lipper ranking ‡ as of 09/30/18

Category: Small-Cap Growth Funds

  Percentile ranking Rank/Funds in category
10 yrs. 90% 65/72
1 yr. 98% 90/91
3 yrs. 98% 86/87
5 yrs. 98% 81/82

The subaccount invests all or a portion of its assets in small to midsize companies. Such investments increase the risk of greater price fluctuations. 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.

‡ 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 09/30/18

Fiscal Year End December
Asset Class Putnam Hartford Capital Manager
Subaccount Status Open to new investors
Number of issues 85
Turnover (fiscal year end) 157%
Net Assets $28M
Inception Date 05/01/03

Holdings

Top 10 holdings as of 09/30/18

Five Below 3.36%
Wingstop 2.68%
Realpage 2.45%
Ligand Pharmaceuticals 2.43%
Trex 2.38%
Merit Medical Systems 2.22%
John Bean Technologies Corp 2.18%
Bright Horizons Family Solutions 2.16%
Mercury Systems 2.10%
Heico Corp 1.95%
Top 10 holdings, total: 23.91%

Equity Holdings as of 06/30/18

SUMMIT MATERIALS INC -CL A 2.64%
COSTAR GROUP INC 2.22%
TALEND SA - ADR 2.22%
GODADDY INC - CLASS A 2.19%
BURLINGTON STORES INC 2.03%
ORION ENGINEERED CARBONS SA 1.83%
INSTRUCTURE INC 1.78%
EVERBRIDGE INC 1.72%
HAMILTON LANE INC-CLASS A 1.72%
INVESTMENT TECHNOLOGY GROUP 1.70%
GAMING AND LEISURE PROPERTIE 1.69%
RADIAN GROUP INC 1.64%
JOHN BEAN TECHNOLOGIES CORP 1.60%
QAD INC-A 1.57%
OSHKOSH CORP 1.54%
DXC TECHNOLOGY CO 1.53%
LOGMEIN INC 1.49%
MALIBU BOATS INC - A 1.44%
DISCOVERY INC-C 1.40%
EAST WEST BANCORP INC 1.40%
SBA COMMUNICATIONS CORP 1.40%
OWENS CORNING 1.39%
MEDICINES COMPANY 1.33%
AT HOME GROUP INC 1.32%
LIBERTY MEDIA COR-SIRIUSXM C 1.31%
SERVICE CORP INTERNATIONAL 1.31%
W.R. GRACE & CO 1.28%
LIBERTY MEDIA CORP-LIBERTY-C 1.26%
PEOPLES BANCORP INC 1.26%
UMPQUA HOLDINGS CORP 1.25%
BALL CORP 1.24%
JAZZ PHARMACEUTICALS PLC 1.24%
EASTERLY GOVERNMENT PROPERTI 1.23%
L3 TECHNOLOGIES INC 1.22%
PROTO LABS INC 1.15%
GRAPHIC PACKAGING HOLDING CO 1.09%
CAVIUM INC 1.02%
RIGHTMOVE PLC 1.01%
HUNT (JB) TRANSPRT SVCS INC 1.00%
EMPLOYERS HOLDINGS INC 0.99%
SMITH (A.O.) CORP 0.98%
WP CAREY INC 0.97%
CLOVIS ONCOLOGY INC 0.96%
E*TRADE FINANCIAL CORPORATION 0.94%
ENCANA CORP 0.86%
ASSURED GUARANTY LTD 0.84%
BROOKS AUTOMATION INC 0.83%
BRUNSWICK CORP 0.81%
FMC CORP 0.81%
PENUMBRA INC 0.80%
CRAFT BREW ALLIANCE INC 0.79%
EPLUS INC 0.79%
DIPLOMAT PHARMACY INC 0.77%
SIMPLY GOOD FOODS CO/THE 0.77%
FIRST REPUBLIC BANK/CA 0.76%
BIO-RAD LABORATORIES-A 0.75%
VALMONT INDUSTRIES 0.74%
ALLIANT ENERGY CORP 0.72%
DISCOVERY INC - A 0.72%
ALLETE INC 0.70%
NRG ENERGY INC 0.69%
BIOMARIN PHARMACEUTICAL INC 0.68%
IRONWOOD PHARMACEUTICALS INC 0.67%
OLD NATIONAL BANCORP 0.66%
ATARA BIOTHERAPEUTICS INC 0.65%
GTT COMMUNICATIONS INC 0.64%
OGE ENERGY CORP 0.61%
TELEFLEX INC 0.61%
POPULAR INC 0.60%
SEVEN GENERATIONS ENERGY - A 0.60%
ST JAMES'S PLACE PLC 0.59%
LIVE NATION ENTERTAINMENT IN 0.58%
PARTY CITY HOLDCO INC 0.58%
TEXAS CAPITAL BANCSHARES INC 0.58%
PJT PARTNERS INC - A 0.55%
BANDWIDTH INC-CLASS A 0.53%
DAVE & BUSTER'S ENTERTAINMEN 0.52%
EVERCORE INC - A 0.52%
PACWEST BANCORP 0.50%
HOLLYFRONTIER CORP 0.46%
WHITING PETROLEUM CORP 0.46%
SANDERSON FARMS INC 0.45%
BLUEBIRD BIO INC 0.44%
WELLCARE HEALTH PLANS INC 0.44%
IDACORP INC 0.42%
GENMARK DIAGNOSTICS INC 0.39%
WYNDHAM HOTELS & RESORTS INC 0.39%
ALNYLAM PHARMACEUTICALS INC 0.38%
WPX ENERGY INC 0.38%
EDGEWELL PERSONAL CARE CO 0.36%
HTG MOLECULAR DIAGNOSTICS 0.33%
LOXO ONCOLOGY INC 0.32%
NUVISTA ENERGY LTD 0.32%
PARSLEY ENERGY INC-CLASS A 0.32%
ARRAY BIOPHARMA INC 0.31%
CALLAWAY GOLF COMPANY 0.27%
RH 0.26%
PATTERSON-UTI ENERGY INC 0.23%
RANGE RESOURCES CORP 0.23%
SELECT ENERGY SERVICES INC-A 0.22%
DR PEPPER SNAPPLE GROUP INC 0.21%
TRANSUNION 0.21%
OCEANEERING INTL INC 0.20%
OIL STATES INTERNATIONAL INC 0.20%
EXTRACTION OIL & GAS INC 0.19%
IMMUNOGEN INC 0.16%
NEKTAR THERAPEUTICS 0.15%
LIBERTY OILFIELD SERVICES -A 0.11%
EVERGY INC 0.09%
DIAMONDBACK ENERGY INC 0.08%
CHESAPEAKE ENERGY CORP 0.05%

Full Portfolio Holdings as of 06/30/18

SUMMIT MATERIALS INC -CL A 2.64%
COSTAR GROUP INC 2.22%
TALEND SA - ADR 2.22%
GODADDY INC - CLASS A 2.19%
BURLINGTON STORES INC 2.03%
ORION ENGINEERED CARBONS SA 1.83%
INSTRUCTURE INC 1.78%
EVERBRIDGE INC 1.72%
HAMILTON LANE INC-CLASS A 1.72%
INVESTMENT TECHNOLOGY GROUP 1.70%
GAMING AND LEISURE PROPERTIE 1.69%
RADIAN GROUP INC 1.64%
JOHN BEAN TECHNOLOGIES CORP 1.60%
QAD INC-A 1.57%
OSHKOSH CORP 1.54%
DXC TECHNOLOGY CO 1.53%
LOGMEIN INC 1.49%
MALIBU BOATS INC - A 1.44%
DISCOVERY INC-C 1.40%
EAST WEST BANCORP INC 1.40%
SBA COMMUNICATIONS CORP 1.40%
OWENS CORNING 1.39%
MEDICINES COMPANY 1.33%
AT HOME GROUP INC 1.32%
LIBERTY MEDIA COR-SIRIUSXM C 1.31%
SERVICE CORP INTERNATIONAL 1.31%
W.R. GRACE & CO 1.28%
LIBERTY MEDIA CORP-LIBERTY-C 1.26%
PEOPLES BANCORP INC 1.26%
UMPQUA HOLDINGS CORP 1.25%
BALL CORP 1.24%
JAZZ PHARMACEUTICALS PLC 1.24%
EASTERLY GOVERNMENT PROPERTI 1.23%
L3 TECHNOLOGIES INC 1.22%
PROTO LABS INC 1.15%
GRAPHIC PACKAGING HOLDING CO 1.09%
CAVIUM INC 1.02%
RIGHTMOVE PLC 1.01%
HUNT (JB) TRANSPRT SVCS INC 1.00%
EMPLOYERS HOLDINGS INC 0.99%
SMITH (A.O.) CORP 0.98%
WP CAREY INC 0.97%
CLOVIS ONCOLOGY INC 0.96%
E*TRADE FINANCIAL CORPORATION 0.94%
ENCANA CORP 0.86%
ASSURED GUARANTY LTD 0.84%
BROOKS AUTOMATION INC 0.83%
BRUNSWICK CORP 0.81%
FMC CORP 0.81%
PENUMBRA INC 0.80%
CRAFT BREW ALLIANCE INC 0.79%
EPLUS INC 0.79%
DIPLOMAT PHARMACY INC 0.77%
SIMPLY GOOD FOODS CO/THE 0.77%
FIRST REPUBLIC BANK/CA 0.76%
BIO-RAD LABORATORIES-A 0.75%
VALMONT INDUSTRIES 0.74%
ALLIANT ENERGY CORP 0.72%
DISCOVERY INC - A 0.72%
ALLETE INC 0.70%
NRG ENERGY INC 0.69%
BIOMARIN PHARMACEUTICAL INC 0.68%
IRONWOOD PHARMACEUTICALS INC 0.67%
OLD NATIONAL BANCORP 0.66%
ATARA BIOTHERAPEUTICS INC 0.65%
GTT COMMUNICATIONS INC 0.64%
OGE ENERGY CORP 0.61%
TELEFLEX INC 0.61%
POPULAR INC 0.60%
SEVEN GENERATIONS ENERGY - A 0.60%
ST JAMES'S PLACE PLC 0.59%
LIVE NATION ENTERTAINMENT IN 0.58%
PARTY CITY HOLDCO INC 0.58%
TEXAS CAPITAL BANCSHARES INC 0.58%
PJT PARTNERS INC - A 0.55%
BANDWIDTH INC-CLASS A 0.53%
DAVE & BUSTER'S ENTERTAINMEN 0.52%
EVERCORE INC - A 0.52%
PACWEST BANCORP 0.50%
HOLLYFRONTIER CORP 0.46%
WHITING PETROLEUM CORP 0.46%
SANDERSON FARMS INC 0.45%
BLUEBIRD BIO INC 0.44%
WELLCARE HEALTH PLANS INC 0.44%
IDACORP INC 0.42%
GENMARK DIAGNOSTICS INC 0.39%
WYNDHAM HOTELS & RESORTS INC 0.39%
ALNYLAM PHARMACEUTICALS INC 0.38%
WPX ENERGY INC 0.38%
EDGEWELL PERSONAL CARE CO 0.36%
HTG MOLECULAR DIAGNOSTICS 0.33%
LOXO ONCOLOGY INC 0.32%
NUVISTA ENERGY LTD 0.32%
PARSLEY ENERGY INC-CLASS A 0.32%
ARRAY BIOPHARMA INC 0.31%
CALLAWAY GOLF COMPANY 0.27%
RH 0.26%
PATTERSON-UTI ENERGY INC 0.23%
RANGE RESOURCES CORP 0.23%
SELECT ENERGY SERVICES INC-A 0.22%
DR PEPPER SNAPPLE GROUP INC 0.21%
TRANSUNION 0.21%
OCEANEERING INTL INC 0.20%
OIL STATES INTERNATIONAL INC 0.20%
EXTRACTION OIL & GAS INC 0.19%
IMMUNOGEN INC 0.16%
NEKTAR THERAPEUTICS 0.15%
LIBERTY OILFIELD SERVICES -A 0.11%
EVERGY INC 0.09%
DIAMONDBACK ENERGY INC 0.08%
CHESAPEAKE ENERGY CORP 0.05%
S&P MID 400 EMINI SEP18 FAU8 -0.01%
S&P500 EMINI FUT SEP18 ESU8 -0.01%
EMIN RUSSELL 2000 SEP18 RTYU8 -0.02%

Prior top 10 holdings

Top 10 holdings as of 09/30/18
1: Five Below 3.36%
2: Wingstop 2.68%
3: Realpage 2.45%
4: Ligand Pharmaceuticals 2.43%
5: Trex 2.38%
6: Merit Medical Systems 2.22%
7: John Bean Technologies Corp 2.18%
8: Bright Horizons Family Solutions 2.16%
9: Mercury Systems 2.10%
10: Heico Corp 1.95%
Holdings represent 23.91% of portfolio
Top 10 holdings as of 08/31/18
1: Godaddy 2.43%
2: Costar Group 2.28%
3: Summit Materials 2.23%
4: Burlington Stores 2.17%
5: Talend 2.10%
6: Everbridge 2.10%
7: Discovery 2.05%
8: John Bean Technologies Corp 2.04%
9: Radian Group 1.97%
10: Orion Engineered Carbons 1.97%
Holdings represent 21.34% of portfolio
Top 10 holdings as of 07/31/18
1: Summit Materials 2.49%
2: Godaddy 2.26%
3: Costar Group 2.21%
4: Talend 2.08%
5: Burlington Stores 2.03%
6: Discovery 2.02%
7: John Bean Technologies Corp 1.97%
8: Orion Engineered Carbons 1.92%
9: Radian Group 1.91%
10: Investment Technology Group 1.77%
Holdings represent 20.66% of portfolio
Top 10 holdings as of 06/30/18
1: Summit Materials 2.64%
2: Costar Group 2.22%
3: Talend 2.22%
4: Godaddy 2.19%
5: Discovery 2.12%
6: Burlington Stores 2.03%
7: Orion Engineered Carbons 1.83%
8: Instructure 1.78%
9: Everbridge 1.72%
10: Hamilton Lane 1.72%
Holdings represent 20.47% of portfolio

Portfolio Composition as of 09/30/18

Common stock 96.57%
Cash and net other assets 3.43%

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

The fund invests all or a portion of its assets in small to midsize companies. Such investments increase the risk of greater price fluctuations. 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.

Top Industry Sectors as of 09/30/18

Health care 26.15%
Information technology 23.53%
Industrials 16.93%
Consumer discretionary 14.27%
Financials 7.07%
Materials 3.50%
Cash and net other assets 3.43%
Communication services 3.31%
Consumer staples 1.81%