Putnam Capital Manager

Putnam Equity Income Subaccount

The subaccount seeks current income. Capital growth is a secondary objective when consistent with seeking current income.

Fund description

The subaccount employs Putnam's value strategy to invest primarily in stocks of large and mid-sized companies that are undervalued and poised for positive change. The subaccount favors dividend-paying companies and is broadly diversified across market sectors. To help manage volatility and increase current income, up to 20% of the portfolio can be invested in high quality, fixed-income securities.

Sales story

A multidimensional approach that defines value on a daily basisA large-value focus: The fund focuses on large companies whose stocks are priced below their long-term potential, and where there may be a catalyst for positive change.Dividend growth: The fund places a distinct emphasis on companies that can grow their dividends and are able and willing to return cash to shareholders.A disciplined process: The portfolio managers invest using fundamental research and quantitative tools supported by strong risk controls in portfolio construction.

Management team

Lipper ranking ‡ as of 06/30/19

Category: Equity Income Funds

  Percentile ranking Rank/Funds in category
10 yrs. 24% 13/54
1 yr. 52% 40/77
3 yrs. 21% 15/71
5 yrs. 29% 19/66

Risk Characteristics as of 06/30/19

Alpha (%) 1.59
Beta 0.99
R squared 0.96
Standard deviation (3 yrs.) 12.03

Mutual funds that invest in government securities are not guaranteed. Mortgage-backed securities are subject to prepayment risk. Capital gains, if any, are taxable for federal and, in most cases, state purposes. For some investors, investment income may be subject to the federal alternative minimum tax. Income from federally exempt funds may be subject to state and local taxes. 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.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 06/30/19

Fiscal Year End December
Asset Class Putnam Capital Manager
Subaccount Status Open to new investors
Number of issues 110
Turnover (fiscal year end) 14%
Net Assets $1,395M
Inception Date 05/01/03

Holdings

Top 10 holdings as of 06/30/19

JPMorgan Chase 3.92%
Microsoft Corp 3.37%
Bank Of America Corp 3.19%
Citigroup 2.91%
Walmart 2.50%
Northrop Grumman Corp 2.08%
Johnson & Johnson 2.03%
BD Medical 1.74%
Danaher Corp 1.70%
Exxon Mobil Corp 1.66%
Top 10 holdings, total: 25.10%

Represents equity portion of portfolio.

Full Portfolio Holdings as of 03/31/19

JPMORGAN CHASE & CO 3.71%
MICROSOFT CORP 3.35%
BANK OF AMERICA CORP 3.17%
CITIGROUP INC 2.69%
WALMART INC 2.31%
JOHNSON & JOHNSON 2.13%
APPLE INC 2.06%
EXXON MOBIL CORP 1.84%
BECTON DICKINSON AND CO 1.81%
NORTHROP GRUMMAN CORP 1.81%
CONOCOPHILLIPS 1.71%
MERCK & CO. INC. 1.63%
ASSURED GUARANTY LTD 1.51%
AMERICAN TOWER CORP 1.50%
AMERICAN ELECTRIC POWER 1.47%
UNION PACIFIC CORP 1.42%
CISCO SYSTEMS INC 1.41%
ELI LILLY & CO 1.39%
PROCTER & GAMBLE CO/THE 1.38%
COMCAST CORP-CLASS A 1.34%
EXELON CORP 1.34%
CIGNA CORP 1.32%
AT&T INC 1.30%
DOWDUPONT INC 1.30%
AMGEN INC 1.27%
RAYTHEON COMPANY 1.25%
ASTRAZENECA PLC-SPONS ADR 1.20%
BP PLC 1.20%
PEPSICO INC 1.14%
VALERO ENERGY CORP 1.12%
DANAHER CORP 1.11%
CHARTER COMMUNICATIONS INC-A 1.10%
ENTERPRISE PRODUCTS PARTNERS 1.10%
KKR & CO INC -A 1.08%
GAMING AND LEISURE PROPERTIE 1.06%
JOHNSON CONTROLS INTERNATION 1.05%
KROGER CO 1.05%
RADIAN GROUP INC 1.05%
NRG ENERGY INC 1.04%
AMERICAN INTERNATIONAL GROUP 1.03%
GILEAD SCIENCES INC 1.02%
NEXTERA ENERGY INC 1.02%
WELLS FARGO & CO 1.02%
BJ'S WHOLESALE CLUB HOLDINGS 0.99%
FIDELITY NATIONAL INFO SERV 0.98%
PFIZER INC 0.96%
QUALCOMM INC 0.96%
REGIONS FINANCIAL CORP 0.93%
HILTON WORLDWIDE HOLDINGS IN 0.92%
TOTAL SA 0.92%
GENERAL MOTORS CO 0.90%
INTEL CORP 0.88%
BALL CORP 0.87%
AIR PRODUCTS & CHEMICALS INC 0.86%
GOLDMAN SACHS GROUP INC 0.85%
MOLSON COORS BREWING CO -B 0.82%
DXC TECHNOLOGY CO 0.81%
SOUTHWEST AIRLINES CO 0.80%
HOME DEPOT INC 0.79%
APTIV PLC 0.77%
HARTFORD FINANCIAL SVCS GRP 0.76%
STATE STREET CORP 0.76%
BOSTON PROPERTIES INC 0.75%
EDISON INTERNATIONAL 0.75%
ALCOA CORP 0.73%
HONEYWELL INTERNATIONAL INC 0.72%
KINDER MORGAN INC 0.70%
O'REILLY AUTOMOTIVE INC 0.70%
ANADARKO PETROLEUM CORP 0.64%
CAPITAL ONE FINANCIAL CORP 0.63%
VERIZON COMMUNICATIONS INC 0.61%
WALGREENS BOOTS ALLIANCE INC 0.61%
BB&T CORP 0.60%
MARATHON OIL CORP 0.58%
TEXAS INSTRUMENTS INC 0.57%
FREEPORT-MCMORAN INC 0.56%
PULTEGROUP INC 0.56%
EOG RESOURCES INC 0.55%
DANAHER CORP 04.7500 CV PFD 0.53%
KEYCORP 0.51%
STANLEY BLACK & DECKER INC 0.51%
HALLIBURTON CO 0.47%
SCHWAB (CHARLES) CORP 0.46%
ENCANA CORP 0.44%
NXP SEMICONDUCTORS NV 0.43%
EMERSON ELECTRIC CO 0.34%
MFA FINANCIAL INC 0.33%
ON SEMICONDUCTOR CORP 0.32%
KEURIG DR PEPPER INC 0.28%
COTY INC-CL A 0.26%
GENERAL ELECTRIC CO 0.25%
SHERWIN-WILLIAMS CO/THE 0.16%
OPORTUN FIN CORP P/P SERIES H PFD 0.04%
POUND STERLING CALL ACCOUNT 0.02%
GLOBAL FASHION GRP 0.01%
GLOBAL FASHION GRP P/P 0.01%
OPORTUN FIN CORP P/P 0.01%
OPORTUN FIN F-1 PFD CV P/P 0.01%
OPORTUN FIN G-1 PFD CV P/P 0.01%
WABTEC CORP 0.01%
CAD/USD 04/17/2019 CITI 0.00%
CAD/USD 04/17/2019 GSFX 0.00%
CANADIAN DOLLAR ACCOUNT 0.00%
EUR/USD 06/19/2019 BANKAM 0.00%
EUR/USD 06/19/2019 GSFX 0.00%
EUR/USD 06/19/2019 SSBT 0.00%
GBP/USD 06/19/2019 BCAP-FX 0.00%
GBP/USD 06/19/2019 GSFX 0.00%
HC BRILLANT SERVICES GMBH P/P 0.00%
NEW BIGFOOT OTHER ASSETS GMBH P/P 0.00%
NEW MIDDLE EAST OTHER ASSETS GMBH P/P 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%
OPORTUN FIN F PFD CV P/P 0.00%

Prior top 10 holdings

Top 10 holdings as of 06/30/19
1: JPMorgan Chase 3.92%
2: Microsoft Corp 3.37%
3: Bank Of America Corp 3.19%
4: Citigroup 2.91%
5: Walmart 2.50%
6: Northrop Grumman Corp 2.08%
7: Johnson & Johnson 2.03%
8: BD Medical 1.74%
9: Danaher Corp 1.70%
10: Exxon Mobil Corp 1.66%
Holdings represent 25.10% of portfolio
Top 10 holdings as of 05/31/19
1: JPMorgan Chase 3.99%
2: Microsoft Corp 3.33%
3: Bank Of America Corp 3.13%
4: Citigroup 2.76%
5: Walmart 2.46%
6: Northrop Grumman Corp 2.08%
7: Johnson&Johnson 2.04%
8: BD Medical 1.72%
9: Danaher Corp 1.70%
10: Exxon Mobil Corp 1.64%
Holdings represent 24.85% of portfolio
Top 10 holdings as of 04/30/19
1: JPMorgan Chase 4.11%
2: Bank Of America Corp 3.40%
3: Microsoft Corp 3.28%
4: Citigroup 2.96%
5: Walmart 2.35%
6: Apple 2.10%
7: Johnson Johnson 2.08%
8: Northrop Grumman Corp 1.88%
9: Exxon Mobil Corp 1.77%
10: BD Medical 1.69%
Holdings represent 25.62% of portfolio
Top 10 holdings as of 03/31/19
1: JPMorgan Chase 3.71%
2: Microsoft Corp 3.35%
3: Bank Of America Corp 3.17%
4: Citigroup 2.69%
5: Walmart 2.31%
6: Johnson&Johnson 2.13%
7: Apple 2.06%
8: Exxon Mobil Corp 1.84%
9: Northrop Grumman Corp 1.81%
10: BD Medical 1.81%
Holdings represent 24.88% of portfolio

Portfolio Composition as of 06/30/19

Common stock 97.48%
Cash and net other assets 1.89%
Convertible preferred stock 0.63%

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

Mutual funds that invest in government securities are not guaranteed. Mortgage-backed securities are subject to prepayment risk. Capital gains, if any, are taxable for federal and, in most cases, state purposes. For some investors, investment income may be subject to the federal alternative minimum tax. Income from federally exempt funds may be subject to state and local taxes. 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.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.

Top Industry Sectors as of 06/30/19

Financials 21.68%
Health care 15.02%
Information technology 10.80%
Energy 10.60%
Industrials 9.09%
Consumer staples 8.65%
Utilities 5.39%
Consumer discretionary 4.77%
Communication services 4.46%
 
Other
9.54%
Materials 4.43%
Real estate 3.22%
Cash and net other assets 1.89%