Putnam Capital Manager

Putnam Sustainable Future Subaccount

The subaccount seeks long-term capital appreciation.

Fund description

The subaccount employs a value strategy to identify undervalued, high-quality companies among the market's mid-cap offerings. The subaccount's managers seek stocks they believe have been under-estimated by the market. They target profitable, established companies of two kinds: smaller companies that have grown to midsize, and larger companies that have fallen out of favor temporarily but are expected to recover.

Sales story

Investing in growing companies solving sustainability challengesImpact companies: The fund invests in growth companies that directly demonstrate positive impact in social, environmental, or economic development.Active strategy: The managers utilize bottom-up research to identify companies with attractive sustainability, fundamental, and valuation characteristics.Veteran team: A dedicated sustainable investing team is backed by Putnam's equity research and quantitative/risk analysis groups.

Management team

Lipper ranking ‡ as of 10/31/18

Category: Multi-Cap Growth Funds

  Percentile ranking Rank/Funds in category
10 yrs. 82% 58/70
1 yr. 80% 69/86
3 yrs. 95% 81/85
5 yrs. 93% 79/84

Risk Characteristics as of 10/31/18

Alpha (%) -1.11
Beta 0.91
R squared 0.91
Standard deviation (3 yrs.) 10.48

The fund invests all or a portion of its assets in small to midsize companies. Such investments increase the risk of greater price fluctuations. 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 10/31/18

Fiscal Year End December
Asset Class Putnam Capital Manager
Subaccount Status Open to new investors
Number of issues 58
Turnover (fiscal year end) 61%
Net Assets $33M
Inception Date 05/01/03

Holdings

Top 10 holdings as of 10/31/18

Mccormick Md 4.66%
Becton Dickinson And 3.92%
Salesforce.Com 3.65%
Unilever 3.36%
Novozymes A/S - B Shares 3.35%
Danaher Corp 3.19%
Chipotle Mexican Grill 3.18%
Dxc Technology 3.05%
Adobe 2.96%
Everbridge 2.90%
Top 10 holdings, total: 34.22%

Equity Holdings as of 09/30/18

NOVOZYMES A/S-B SHARES 4.02%
MCCORMICK & CO-NON VTG SHRS 3.98%
BECTON DICKINSON AND CO 3.97%
SALESFORCE.COM INC 3.78%
DXC TECHNOLOGY CO 3.50%
ALPHABET INC-CL A 3.27%
DANAHER CORP 3.12%
UNILEVER PLC 3.11%
EVERBRIDGE INC 2.94%
ADOBE SYSTEMS INC 2.91%
TELADOC HEALTH INC 2.84%
CHIPOTLE MEXICAN GRILL INC 2.81%
VAIL RESORTS INC 2.79%
FORTIVE CORP 2.63%
FIRST REPUBLIC BANK/CA 2.48%
PENUMBRA INC 2.45%
MASTERCARD INC - A 2.42%
WEBSTER FINANCIAL CORP 2.34%
BALL CORP 2.15%
JAZZ PHARMACEUTICALS PLC 1.88%
CHR HANSEN HOLDING A/S 1.74%
PRUDENTIAL PLC 1.71%
BLACKROCK INC 1.67%
MSCI INC 1.67%
NEXTERA ENERGY INC 1.56%
INSTRUCTURE INC 1.55%
ADIDAS AG 1.53%
XYLEM INC 1.30%
TJX COMPANIES INC 1.29%
ITRON INC 1.24%
EDWARDS LIFESCIENCES CORP 1.23%
VERTEX PHARMACEUTICALS INC 1.19%
ASML HOLDING NV-NY REG SHS 1.14%
ECOLAB INC 1.08%
NXP SEMICONDUCTORS NV 1.03%
HEALTHEQUITY INC 1.00%
ON SEMICONDUCTOR CORP 0.98%
BIO-RAD LABORATORIES-A 0.96%
STITCH FIX INC-CLASS A 0.94%
NORFOLK SOUTHERN CORP 0.89%
E*TRADE FINANCIAL CORPORATION 0.85%
GENTERA SAB DE CV 0.85%
ORBOTECH LTD 0.84%
KION GROUP AG 0.80%
EURAZEO SE 0.78%
APPLIED MATERIALS INC 0.77%
RAYMOND JAMES FINANCIAL INC 0.73%
INVESCO LTD 0.70%
KEURIG DR PEPPER INC 0.68%
GALAPAGOS NV-SPON ADR 0.54%
MEDICINES COMPANY 0.54%
BANK OF AMERICA CORP 0.53%
OWENS CORNING 0.41%
BLUEBIRD BIO INC 0.38%
FIRST SOLAR INC 0.34%
CLOVIS ONCOLOGY INC 0.26%
SUNRUN INC 0.23%
EVENTBRITE INC-CLASS A 0.10%

Full Portfolio Holdings as of 09/30/18

NOVOZYMES A/S-B SHARES 4.02%
MCCORMICK & CO-NON VTG SHRS 3.98%
BECTON DICKINSON AND CO 3.97%
SALESFORCE.COM INC 3.78%
DXC TECHNOLOGY CO 3.50%
ALPHABET INC-CL A 3.27%
DANAHER CORP 3.12%
UNILEVER PLC 3.11%
EVERBRIDGE INC 2.94%
ADOBE SYSTEMS INC 2.91%
TELADOC HEALTH INC 2.84%
CHIPOTLE MEXICAN GRILL INC 2.81%
VAIL RESORTS INC 2.79%
FORTIVE CORP 2.63%
FIRST REPUBLIC BANK/CA 2.48%
PENUMBRA INC 2.45%
MASTERCARD INC - A 2.42%
WEBSTER FINANCIAL CORP 2.34%
BALL CORP 2.15%
JAZZ PHARMACEUTICALS PLC 1.88%
CHR HANSEN HOLDING A/S 1.74%
PRUDENTIAL PLC 1.71%
BLACKROCK INC 1.67%
MSCI INC 1.67%
NEXTERA ENERGY INC 1.56%
INSTRUCTURE INC 1.55%
ADIDAS AG 1.53%
XYLEM INC 1.30%
TJX COMPANIES INC 1.29%
ITRON INC 1.24%
EDWARDS LIFESCIENCES CORP 1.23%
VERTEX PHARMACEUTICALS INC 1.19%
ASML HOLDING NV-NY REG SHS 1.14%
ECOLAB INC 1.08%
NXP SEMICONDUCTORS NV 1.03%
HEALTHEQUITY INC 1.00%
ON SEMICONDUCTOR CORP 0.98%
BIO-RAD LABORATORIES-A 0.96%
STITCH FIX INC-CLASS A 0.94%
NORFOLK SOUTHERN CORP 0.89%
E*TRADE FINANCIAL CORPORATION 0.85%
GENTERA SAB DE CV 0.85%
ORBOTECH LTD 0.84%
KION GROUP AG 0.80%
EURAZEO SE 0.78%
APPLIED MATERIALS INC 0.77%
RAYMOND JAMES FINANCIAL INC 0.73%
INVESCO LTD 0.70%
KEURIG DR PEPPER INC 0.68%
GALAPAGOS NV-SPON ADR 0.54%
MEDICINES COMPANY 0.54%
BANK OF AMERICA CORP 0.53%
OWENS CORNING 0.41%
BLUEBIRD BIO INC 0.38%
FIRST SOLAR INC 0.34%
CLOVIS ONCOLOGY INC 0.26%
SUNRUN INC 0.23%
EVENTBRITE INC-CLASS A 0.10%
POUND STERLING CALL ACCOUNT 0.00%

Prior top 10 holdings

Top 10 holdings as of 10/31/18
1: Mccormick Md 4.66%
2: Becton Dickinson And 3.92%
3: Salesforce.Com 3.65%
4: Unilever 3.36%
5: Novozymes A/S - B Shares 3.35%
6: Danaher Corp 3.19%
7: Chipotle Mexican Grill 3.18%
8: Dxc Technology 3.05%
9: Adobe 2.96%
10: Everbridge 2.90%
Holdings represent 34.22% of portfolio
Top 10 holdings as of 09/30/18
1: Novozymes A/S - B Shares 4.02%
2: Mccormick Md 3.98%
3: BD Medical 3.97%
4: Salesforce.Com 3.78%
5: Dxc Technology 3.50%
6: Alphabet 3.27%
7: Danaher Corp 3.12%
8: Unilever 3.11%
9: Everbridge 2.94%
10: Adobe Systems 2.91%
Holdings represent 34.60% of portfolio
Top 10 holdings as of 08/31/18
1: Novozymes A/S - B Shares 3.97%
2: Becton Dickinson and Co 3.93%
3: Dxc Technology 3.74%
4: Salesforce.Com 3.59%
5: Vail Resorts 3.43%
6: Alphabet 3.30%
7: Unilever 3.18%
8: Everbridge 3.13%
9: Chipotle Mexican Grill 2.90%
10: Adobe Systems 2.81%
Holdings represent 33.98% of portfolio
Top 10 holdings as of 07/31/18
1: Novozymes A/S - B Shares 4.14%
2: Becton Dickinson and Co 3.92%
3: Mccormick Md 3.90%
4: Dxc Technology 3.62%
5: Alphabet 3.42%
6: Salesforce.Com 3.36%
7: Unilever 3.33%
8: Vail Resorts 3.32%
9: First Republic Bank/Ca 2.87%
10: Danaher Corp 2.79%
Holdings represent 34.67% of portfolio

Portfolio Composition as of 10/31/18

Common stock 95.32%
Cash and net other assets 4.68%

Portfolio allocations 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. 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.

Top Industry Sectors as of 10/31/18

Information technology 23.12%
Health care 19.95%
Financials 13.53%
Consumer discretionary 10.23%
Materials 8.90%
Consumer staples 8.86%
Industrials 5.47%
Cash and net other assets 4.68%
Communication services 3.47%
 
Other
1.79%
Utilities 1.79%