Putnam Hartford 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

Seeking to harness the power of stock dividends Dividend-paying companies: Dividends offer evidence of a company's commitment to creating shareholder value and are typically paid by more established companies.A 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.A rigorous process: The fund's experienced manager combines quantitative research with rigorous fundamental investment research to find opportunities and manage risk.

Management team

Lipper ranking ‡ as of 04/30/18

Category: Equity Income Funds

  Percentile ranking Rank/Funds in category
10 yrs. 4% 2/53
1 yr. 6% 4/75
3 yrs. 24% 17/72
5 yrs. 15% 9/63

Risk Characteristics as of 04/30/18

Alpha (%) 0.97
Beta 0.95
R squared 0.96
Standard deviation (3 yrs.) 9.97

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 04/30/18

Fiscal Year End December
Asset Class Putnam Hartford Capital Manager
Subaccount Status Open to new investors
Number of issues 109
Turnover (fiscal year end) 12%
Net Assets $1,494M
Inception Date 05/01/03

Holdings

Top 10 holdings as of 04/30/18

JPMorgan Chase 4.10%
Bank Of America Corp 3.54%
Microsoft Corp 3.41%
Citigroup 3.05%
Northrop Grumman Corp 2.52%
Johnson & Johnson 1.99%
ConocoPhillips 1.88%
Apple 1.85%
Exxon Mobil Corp 1.83%
BD Medical 1.74%
Top 10 holdings, total: 25.91%

Represents equity portion of portfolio.

Equity Holdings as of 03/31/18

JPMORGAN CHASE & CO 4.26%
BANK OF AMERICA CORP 3.66%
MICROSOFT CORP 3.38%
CITIGROUP INC 3.11%
NORTHROP GRUMMAN CORP 2.76%
JOHNSON & JOHNSON 2.04%
APPLE INC 1.94%
EXXON MOBIL CORP 1.80%
CONOCOPHILLIPS 1.73%
BECTON DICKINSON AND CO 1.67%
DOWDUPONT INC 1.62%
AT&T INC 1.55%
RAYTHEON COMPANY 1.55%
MARATHON OIL CORP 1.49%
ALCOA CORP 1.43%
AMERICAN INTERNATIONAL GROUP 1.37%
SCHWAB (CHARLES) CORP 1.34%
CIGNA CORP 1.31%
DXC TECHNOLOGY CO 1.31%
VALERO ENERGY CORP 1.30%
ASSURED GUARANTY LTD 1.27%
DANAHER CORP 1.27%
REGIONS FINANCIAL CORP 1.27%
GILEAD SCIENCES INC 1.23%
UNION PACIFIC CORP 1.19%
AMGEN INC 1.18%
COMCAST CORP-CLASS A 1.18%
STATE STREET CORP 1.18%
CISCO SYSTEMS INC 1.17%
GOLDMAN SACHS GROUP INC 1.15%
AMERICAN TOWER CORP 1.14%
WELLS FARGO & CO 1.14%
DR PEPPER SNAPPLE GROUP INC 1.11%
MERCK & CO. INC. 1.11%
MOLSON COORS BREWING CO -B 1.07%
ASTRAZENECA PLC-SPONS ADR 1.05%
PEPSICO INC 1.05%
JOHNSON CONTROLS INTERNATION 1.04%
KROGER CO 1.04%
O'REILLY AUTOMOTIVE INC 1.00%
RADIAN GROUP INC 0.99%
KIMBERLY-CLARK CORP 0.97%
TOTAL SA 0.97%
EOG RESOURCES INC 0.95%
GAMING AND LEISURE PROPERTIE 0.95%
ANADARKO PETROLEUM CORP 0.93%
INTEL CORP 0.92%
GENERAL MOTORS CO 0.91%
HILTON WORLDWIDE HOLDINGS IN 0.91%
SOUTHWEST AIRLINES CO 0.91%
CHARTER COMMUNICATIONS INC-A 0.90%
EXELON CORP 0.90%
FIDELITY NATIONAL INFO SERV 0.89%
APTIV PLC 0.87%
ELI LILLY & CO 0.85%
HARTFORD FINANCIAL SVCS GRP 0.85%
KKR & CO LP 0.85%
PFIZER INC 0.85%
TEXAS INSTRUMENTS INC 0.85%
HALLIBURTON CO 0.82%
EDISON INTERNATIONAL 0.80%
HOME DEPOT INC 0.77%
NRG ENERGY INC 0.77%
BOSTON PROPERTIES INC 0.76%
AIR PRODUCTS & CHEMICALS INC 0.75%
CAPITAL ONE FINANCIAL CORP 0.73%
HONEYWELL INTERNATIONAL INC 0.70%
KEYCORP 0.69%
BALL CORP 0.67%
KRAFT HEINZ CO/THE 0.66%
SEALED AIR CORP 0.64%
AMERICAN ELECTRIC POWER 0.62%
CF INDUSTRIES HOLDINGS INC 0.62%
SUNCOR ENERGY INC 0.59%
KINDER MORGAN INC 0.54%
MANDATORY EXCH TRUST P/P 144A 05.7500 CV PFD 0.54%
PULTEGROUP INC 0.54%
VERIZON COMMUNICATIONS INC 0.54%
CUMMINS INC 0.51%
AIRBUS SE 0.50%
EMERSON ELECTRIC CO 0.50%
NEXTERA ENERGY INC 0.50%
VODAFONE GROUP PLC-SP ADR 0.50%
WALGREENS BOOTS ALLIANCE INC 0.47%
P G & E CORP 0.46%
COTY INC-CL A 0.39%
INVESCO LTD 0.39%
ON SEMICONDUCTOR CORP 0.39%
GENERAL ELECTRIC CO 0.34%
PIONEER NAT RES CO 0.34%
MFA FINANCIAL INC 0.33%
QUALCOMM INC 0.29%
DISH NETWORK CORP-A 0.20%
DELPHI TECHNOLOGIES PLC 0.16%
OPORTUN FIN CORP P/P SERIES H PFD 0.04%
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%
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%

Full Portfolio Holdings as of 03/31/18

JPMORGAN CHASE & CO 4.26%
BANK OF AMERICA CORP 3.66%
MICROSOFT CORP 3.38%
CITIGROUP INC 3.11%
NORTHROP GRUMMAN CORP 2.76%
JOHNSON & JOHNSON 2.04%
APPLE INC 1.94%
EXXON MOBIL CORP 1.80%
CONOCOPHILLIPS 1.73%
BECTON DICKINSON AND CO 1.67%
DOWDUPONT INC 1.62%
AT&T INC 1.55%
RAYTHEON COMPANY 1.55%
MARATHON OIL CORP 1.49%
ALCOA CORP 1.43%
AMERICAN INTERNATIONAL GROUP 1.37%
SCHWAB (CHARLES) CORP 1.34%
CIGNA CORP 1.31%
DXC TECHNOLOGY CO 1.31%
VALERO ENERGY CORP 1.30%
ASSURED GUARANTY LTD 1.27%
DANAHER CORP 1.27%
REGIONS FINANCIAL CORP 1.27%
GILEAD SCIENCES INC 1.23%
UNION PACIFIC CORP 1.19%
AMGEN INC 1.18%
COMCAST CORP-CLASS A 1.18%
STATE STREET CORP 1.18%
CISCO SYSTEMS INC 1.17%
GOLDMAN SACHS GROUP INC 1.15%
AMERICAN TOWER CORP 1.14%
WELLS FARGO & CO 1.14%
DR PEPPER SNAPPLE GROUP INC 1.11%
MERCK & CO. INC. 1.11%
MOLSON COORS BREWING CO -B 1.07%
ASTRAZENECA PLC-SPONS ADR 1.05%
PEPSICO INC 1.05%
JOHNSON CONTROLS INTERNATION 1.04%
KROGER CO 1.04%
O'REILLY AUTOMOTIVE INC 1.00%
RADIAN GROUP INC 0.99%
KIMBERLY-CLARK CORP 0.97%
TOTAL SA 0.97%
EOG RESOURCES INC 0.95%
GAMING AND LEISURE PROPERTIE 0.95%
ANADARKO PETROLEUM CORP 0.93%
INTEL CORP 0.92%
GENERAL MOTORS CO 0.91%
HILTON WORLDWIDE HOLDINGS IN 0.91%
SOUTHWEST AIRLINES CO 0.91%
CHARTER COMMUNICATIONS INC-A 0.90%
EXELON CORP 0.90%
FIDELITY NATIONAL INFO SERV 0.89%
APTIV PLC 0.87%
ELI LILLY & CO 0.85%
HARTFORD FINANCIAL SVCS GRP 0.85%
KKR & CO LP 0.85%
PFIZER INC 0.85%
TEXAS INSTRUMENTS INC 0.85%
HALLIBURTON CO 0.82%
EDISON INTERNATIONAL 0.80%
HOME DEPOT INC 0.77%
NRG ENERGY INC 0.77%
BOSTON PROPERTIES INC 0.76%
AIR PRODUCTS & CHEMICALS INC 0.75%
CAPITAL ONE FINANCIAL CORP 0.73%
HONEYWELL INTERNATIONAL INC 0.70%
KEYCORP 0.69%
BALL CORP 0.67%
KRAFT HEINZ CO/THE 0.66%
SEALED AIR CORP 0.64%
AMERICAN ELECTRIC POWER 0.62%
CF INDUSTRIES HOLDINGS INC 0.62%
SUNCOR ENERGY INC 0.59%
KINDER MORGAN INC 0.54%
MANDATORY EXCH TRUST P/P 144A 05.7500 CV PFD 0.54%
PULTEGROUP INC 0.54%
VERIZON COMMUNICATIONS INC 0.54%
CUMMINS INC 0.51%
AIRBUS SE 0.50%
EMERSON ELECTRIC CO 0.50%
NEXTERA ENERGY INC 0.50%
VODAFONE GROUP PLC-SP ADR 0.50%
WALGREENS BOOTS ALLIANCE INC 0.47%
P G & E CORP 0.46%
COTY INC-CL A 0.39%
INVESCO LTD 0.39%
ON SEMICONDUCTOR CORP 0.39%
GENERAL ELECTRIC CO 0.34%
PIONEER NAT RES CO 0.34%
MFA FINANCIAL INC 0.33%
QUALCOMM INC 0.29%
DISH NETWORK CORP-A 0.20%
DELPHI TECHNOLOGIES PLC 0.16%
OPORTUN FIN CORP P/P SERIES H PFD 0.04%
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%
CAD/USD 04/18/2018 CITI 0.00%
CAD/USD 04/18/2018 GSFX 0.00%
EUR/USD 06/20/2018 BANKAM 0.00%
EUR/USD 06/20/2018 GSFX 0.00%
EUR/USD 06/20/2018 SSBT 0.00%
GBP/USD 06/20/2018 BANKAM 0.00%
GBP/USD 06/20/2018 BCAP-FX 0.00%
GBP/USD 06/20/2018 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 04/30/18
1: JPMorgan Chase 4.10%
2: Bank Of America Corp 3.54%
3: Microsoft Corp 3.41%
4: Citigroup 3.05%
5: Northrop Grumman Corp 2.52%
6: Johnson & Johnson 1.99%
7: ConocoPhillips 1.88%
8: Apple 1.85%
9: Exxon Mobil Corp 1.83%
10: BD Medical 1.74%
Holdings represent 25.91% of portfolio
Top 10 holdings as of 03/31/18
1: JPMorgan Chase 4.26%
2: Bank Of America Corp 3.66%
3: Microsoft Corp 3.38%
4: Citigroup 3.11%
5: Northrop Grumman Corp 2.76%
6: Johnson & Johnson 2.04%
7: Apple 1.94%
8: Exxon Mobil Corp 1.80%
9: ConocoPhillips 1.73%
10: BD Medical 1.67%
Holdings represent 26.35% of portfolio
Top 10 holdings as of 02/28/18
1: JPMorgan Chase 4.33%
2: Bank Of America Corp 3.79%
3: Citigroup 3.37%
4: Microsoft 3.36%
5: Northrop Grumman Corp 2.68%
6: Apple 2.00%
7: Johnson & Johnson 2.00%
8: Exxon Mobil Corp 1.77%
9: Dowdupont 1.73%
10: BD Medical 1.66%
Holdings represent 26.69% of portfolio
Top 10 holdings as of 01/31/18
1: JPMorgan Chase 4.09%
2: Bank of America 3.57%
3: Citigroup 3.30%
4: Microsoft Corp 3.21%
5: Northrop Grumman Corp 2.71%
6: Johnson & Johnson 2.01%
7: Exxon Mobil Corp 1.92%
8: Apple 1.77%
9: Dowdupont 1.75%
10: Becton Dickinson And 1.71%
Holdings represent 26.04% of portfolio

Portfolio Composition as of 04/30/18

Common stock 98.05%
Cash and net other assets 1.34%
Convertible preferred stock 0.61%

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 04/30/18

Financials 23.66%
Health care 12.68%
Energy 12.42%
Information technology 12.07%
Industrials 9.44%
Consumer discretionary 7.29%
Consumer staples 6.51%
Materials 5.86%
Utilities 4.06%
 
Other
6.01%
Real estate 2.74%
Telecommunication services 1.93%
Cash and net other assets 1.34%