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 01/31/18

Category: Equity Income Funds

  Percentile ranking Rank/Funds in category
10 yrs. 4% 2/53
1 yr. 20% 15/76
3 yrs. 25% 18/73
5 yrs. 16% 10/63

Risk Characteristics as of 01/31/18

Alpha (%) 1.35
Beta 0.96
R squared 0.95
Standard deviation (3 yrs.) 9.80

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 01/31/18

Fiscal Year End December
Asset Class Putnam Hartford Capital Manager
Subaccount Status Open to new investors
Number of issues 115
Turnover (fiscal year end) 16%
Net Assets $1,637M
Inception Date 05/01/03

Holdings

Top 10 holdings as of 01/31/18

JPMorgan Chase 4.09%
Bank of America 3.57%
Citigroup 3.30%
Microsoft Corp 3.21%
Northrop Grumman Corp 2.71%
Johnson & Johnson 2.01%
Exxon Mobil Corp 1.92%
Apple 1.77%
Dowdupont 1.75%
Becton Dickinson And 1.71%
Top 10 holdings, total: 26.04%

Represents equity portion of portfolio.

Equity Holdings as of 12/31/17

JPMORGAN CHASE & CO 3.92%
BANK OF AMERICA CORP 3.41%
CITIGROUP INC 3.25%
MICROSOFT CORP 3.00%
NORTHROP GRUMMAN CORP 2.75%
JOHNSON & JOHNSON 2.14%
EXXON MOBIL CORP 1.91%
APPLE INC 1.89%
DOWDUPONT INC 1.74%
SCHWAB (CHARLES) CORP 1.71%
ALCOA CORP 1.63%
AT&T INC 1.63%
BECTON DICKINSON AND CO 1.59%
CONOCOPHILLIPS 1.55%
CIGNA CORP 1.53%
MARATHON OIL CORP 1.51%
COMCAST CORP-CLASS A 1.31%
RAYTHEON COMPANY 1.30%
WELLS FARGO & CO 1.27%
TEXAS INSTRUMENTS INC 1.25%
VALERO ENERGY CORP 1.24%
DXC TECHNOLOGY CO 1.19%
AMGEN INC 1.16%
AMERICAN INTERNATIONAL GROUP 1.14%
REGIONS FINANCIAL CORP 1.14%
UNION PACIFIC CORP 1.14%
GILEAD SCIENCES INC 1.13%
PEPSICO INC 1.11%
STATE STREET CORP 1.11%
MERCK & CO. INC. 1.10%
JOHNSON CONTROLS INTERNATION 1.08%
KIMBERLY-CLARK CORP 1.02%
CISCO SYSTEMS INC 1.00%
SOUTHWEST AIRLINES CO 1.00%
ASTRAZENECA PLC-SPONS ADR 0.98%
GOLDMAN SACHS GROUP INC 0.97%
AMERICAN TOWER CORP 0.95%
CHARTER COMMUNICATIONS INC-A 0.94%
EOG RESOURCES INC 0.94%
RADIAN GROUP INC 0.94%
O'REILLY AUTOMOTIVE INC 0.93%
TOTAL SA 0.91%
ALPHABET INC-CL C 0.89%
ELI LILLY & CO 0.89%
HILTON WORLDWIDE HOLDINGS IN 0.89%
HARTFORD FINANCIAL SVCS GRP 0.88%
ASSURED GUARANTY LTD 0.87%
DR PEPPER SNAPPLE GROUP INC 0.87%
EXELON CORP 0.86%
FIDELITY NATIONAL INFO SERV 0.83%
KKR & CO LP 0.83%
APTIV PLC 0.82%
KROGER CO 0.82%
PFIZER INC 0.82%
CHUBB LTD 0.80%
HALLIBURTON CO 0.80%
ANADARKO PETROLEUM CORP 0.78%
DANAHER CORP 0.78%
HOME DEPOT INC 0.78%
KRAFT HEINZ CO/THE 0.78%
INTEL CORP 0.77%
BOSTON PROPERTIES INC 0.76%
MOLSON COORS BREWING CO -B 0.75%
AIR PRODUCTS & CHEMICALS INC 0.73%
CAPITAL ONE FINANCIAL CORP 0.71%
HONEYWELL INTERNATIONAL INC 0.71%
SEALED AIR CORP 0.70%
AGILENT TECHNOLOGIES INC 0.67%
CF INDUSTRIES HOLDINGS INC 0.67%
KEYCORP 0.67%
AMERICAN ELECTRIC POWER 0.63%
CALPINE CORP 0.63%
APPLIED MATERIALS INC 0.62%
BALL CORP 0.60%
SUNCOR ENERGY INC 0.59%
PULTEGROUP INC 0.57%
VERIZON COMMUNICATIONS INC 0.56%
EDISON INTERNATIONAL 0.54%
VODAFONE GROUP PLC-SP ADR 0.54%
GAMING AND LEISURE PROPERTIE 0.53%
FEDERAL REALTY INVS TRUST 0.51%
CHENIERE ENERGY INC 0.50%
NXP SEMICONDUCTORS NV 0.50%
BROADCOM LTD 0.49%
MANDATORY EXCH TRUST P/P 144A 05.7500 CV PFD 0.49%
WALGREENS BOOTS ALLIANCE INC 0.49%
GENERAL MOTORS CO 0.48%
NEXTERA ENERGY INC 0.46%
INVESCO LTD 0.42%
AIRBUS SE 0.41%
FORTIVE CORP 0.41%
GENERAL ELECTRIC CO 0.41%
COTY INC-CL A 0.40%
MFA FINANCIAL INC 0.33%
PIONEER NAT RES CO 0.32%
NRG ENERGY INC 0.30%
KINDER MORGAN INC 0.26%
P G & E CORP 0.24%
DISH NETWORK CORP-A 0.23%
COLGATE-PALMOLIVE CO 0.21%
DELPHI TECHNOLOGIES PLC 0.17%
AMERICAN TOWER CORP 05.5000 CV PFD 0.13%
ARCONIC INC 0.09%
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%
FABFURNISH 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 12/31/17

JPMORGAN CHASE & CO 3.92%
BANK OF AMERICA CORP 3.41%
CITIGROUP INC 3.25%
MICROSOFT CORP 3.00%
NORTHROP GRUMMAN CORP 2.75%
JOHNSON & JOHNSON 2.14%
EXXON MOBIL CORP 1.91%
APPLE INC 1.89%
DOWDUPONT INC 1.74%
SCHWAB (CHARLES) CORP 1.71%
ALCOA CORP 1.63%
AT&T INC 1.63%
BECTON DICKINSON AND CO 1.59%
CONOCOPHILLIPS 1.55%
CIGNA CORP 1.53%
MARATHON OIL CORP 1.51%
COMCAST CORP-CLASS A 1.31%
RAYTHEON COMPANY 1.30%
WELLS FARGO & CO 1.27%
TEXAS INSTRUMENTS INC 1.25%
VALERO ENERGY CORP 1.24%
DXC TECHNOLOGY CO 1.19%
AMGEN INC 1.16%
AMERICAN INTERNATIONAL GROUP 1.14%
REGIONS FINANCIAL CORP 1.14%
UNION PACIFIC CORP 1.14%
GILEAD SCIENCES INC 1.13%
PEPSICO INC 1.11%
STATE STREET CORP 1.11%
MERCK & CO. INC. 1.10%
JOHNSON CONTROLS INTERNATION 1.08%
KIMBERLY-CLARK CORP 1.02%
CISCO SYSTEMS INC 1.00%
SOUTHWEST AIRLINES CO 1.00%
ASTRAZENECA PLC-SPONS ADR 0.98%
GOLDMAN SACHS GROUP INC 0.97%
AMERICAN TOWER CORP 0.95%
CHARTER COMMUNICATIONS INC-A 0.94%
EOG RESOURCES INC 0.94%
RADIAN GROUP INC 0.94%
O'REILLY AUTOMOTIVE INC 0.93%
TOTAL SA 0.91%
ALPHABET INC-CL C 0.89%
ELI LILLY & CO 0.89%
HILTON WORLDWIDE HOLDINGS IN 0.89%
HARTFORD FINANCIAL SVCS GRP 0.88%
ASSURED GUARANTY LTD 0.87%
DR PEPPER SNAPPLE GROUP INC 0.87%
EXELON CORP 0.86%
FIDELITY NATIONAL INFO SERV 0.83%
KKR & CO LP 0.83%
APTIV PLC 0.82%
KROGER CO 0.82%
PFIZER INC 0.82%
CHUBB LTD 0.80%
HALLIBURTON CO 0.80%
ANADARKO PETROLEUM CORP 0.78%
DANAHER CORP 0.78%
HOME DEPOT INC 0.78%
KRAFT HEINZ CO/THE 0.78%
INTEL CORP 0.77%
BOSTON PROPERTIES INC 0.76%
MOLSON COORS BREWING CO -B 0.75%
AIR PRODUCTS & CHEMICALS INC 0.73%
CAPITAL ONE FINANCIAL CORP 0.71%
HONEYWELL INTERNATIONAL INC 0.71%
SEALED AIR CORP 0.70%
AGILENT TECHNOLOGIES INC 0.67%
CF INDUSTRIES HOLDINGS INC 0.67%
KEYCORP 0.67%
AMERICAN ELECTRIC POWER 0.63%
CALPINE CORP 0.63%
APPLIED MATERIALS INC 0.62%
BALL CORP 0.60%
SUNCOR ENERGY INC 0.59%
PULTEGROUP INC 0.57%
VERIZON COMMUNICATIONS INC 0.56%
EDISON INTERNATIONAL 0.54%
VODAFONE GROUP PLC-SP ADR 0.54%
GAMING AND LEISURE PROPERTIE 0.53%
FEDERAL REALTY INVS TRUST 0.51%
CHENIERE ENERGY INC 0.50%
NXP SEMICONDUCTORS NV 0.50%
BROADCOM LTD 0.49%
MANDATORY EXCH TRUST P/P 144A 05.7500 CV PFD 0.49%
WALGREENS BOOTS ALLIANCE INC 0.49%
GENERAL MOTORS CO 0.48%
NEXTERA ENERGY INC 0.46%
INVESCO LTD 0.42%
AIRBUS SE 0.41%
FORTIVE CORP 0.41%
GENERAL ELECTRIC CO 0.41%
COTY INC-CL A 0.40%
MFA FINANCIAL INC 0.33%
PIONEER NAT RES CO 0.32%
NRG ENERGY INC 0.30%
KINDER MORGAN INC 0.26%
P G & E CORP 0.24%
DISH NETWORK CORP-A 0.23%
COLGATE-PALMOLIVE CO 0.21%
DELPHI TECHNOLOGIES PLC 0.17%
AMERICAN TOWER CORP 05.5000 CV PFD 0.13%
ARCONIC INC 0.09%
OPORTUN FIN CORP P/P SERIES H PFD 0.04%
GBP/USD 03/21/2018 GSFX 0.01%
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 01/17/2018 CITI 0.00%
CAD/USD 01/17/2018 GSFX 0.00%
EUR/USD 03/21/2018 BANKAM 0.00%
EUR/USD 03/21/2018 GSFX 0.00%
EUR/USD 03/21/2018 SSBT 0.00%
FABFURNISH GMBH P/P 0.00%
GBP/USD 03/21/2018 BANKAM 0.00%
GBP/USD 03/21/2018 BCAP-FX 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%
THE EURO EUR CALL ACCOUNT 0.00%

Prior top 10 holdings

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
Top 10 holdings as of 12/31/17
1: JPMorgan Chase 3.92%
2: Bank Of America Corp 3.41%
3: Citigroup 3.25%
4: Microsoft Corp 3.00%
5: Northrop Grumman Corp 2.75%
6: Johnson & Johnson 2.14%
7: Exxon Mobil Corp 1.91%
8: Apple 1.89%
9: Dowdupont 1.74%
10: Charles Schwab Corp/The 1.71%
Holdings represent 25.72% of portfolio
Top 10 holdings as of 11/30/17
1: JPMorgan Chase 3.87%
2: Citigroup 3.32%
3: Bank Of America Corp 3.29%
4: Microsoft Corp 2.98%
5: Northrop Grumman Corp 2.78%
6: Johnson & Johnson 2.16%
7: Apple 1.93%
8: Exxon Mobil Corp 1.92%
9: Dowdupont 1.78%
10: Becton Dickinson And 1.71%
Holdings represent 25.74% of portfolio
Top 10 holdings as of 10/31/17
1: JPMorgan Chase 3.77%
2: Citigroup 3.28%
3: Bank Of America Corp 3.24%
4: Microsoft Corp 2.98%
5: Northrop Grumman Corp 2.88%
6: Johnson & Johnson 2.18%
7: Exxon Mobil Corp 1.94%
8: Apple 1.93%
9: Dowdupont 1.81%
10: Becton Dickinson And 1.58%
Holdings represent 25.59% of portfolio

Portfolio Composition as of 01/31/18

Common stock 97.68%
Cash and net other assets 1.56%
Convertible preferred stock 0.76%

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 01/31/18

Financials 24.98%
Health care 12.84%
Information technology 11.96%
Energy 11.06%
Industrials 9.13%
Consumer discretionary 7.32%
Consumer staples 6.60%
Materials 5.86%
Utilities 3.42%
 
Other
6.83%
Real estate 2.70%
Telecommunication services 2.57%
Cash and net other assets 1.56%