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 sustainable solutionsImpact companies The subaccount invests in companies we believe have strong fundamentals that offer potential solutions to key sustainability challenges. Active research process A framework grounded in fundamental research and focused on impact-oriented sustainability solutions drives investment decisions. Experienced teamAn experienced, dedicated sustainable investing team is integrated with Putnam's equity research group.

Management team

Lipper ranking ‡ as of 10/31/22

Category: Multi-Cap Growth Funds

  Percentile ranking Rank/Funds in category
10 yrs. 86% 58/67
1 yr. 83% 63/75
3 yrs. 62% 44/71
5 yrs. 82% 59/71

Risk Characteristics as of 10/31/22

Alpha (%) -0.48
Beta 0.98
R squared 0.95
Standard deviation (3 yrs.) 24.29

‡ 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 11/30/22

Fiscal Year End December
Asset Class Putnam Capital Manager
Subaccount Status Open to new investors
Number of issues 64
Turnover (fiscal year end) 51%
Net Assets $27M
Inception Date 05/01/03

Holdings

Dexcom 3.15%
Danaher Corp 3.05%
Chipotle Mexican Grill 2.98%
Crowdstrike Holdings 2.85%
Msci 2.84%
Mccormick Md 2.75%
Cintas Corp 2.74%
Healthequity 2.53%
Thermo Fisher Scientific 2.46%
Nextera Energy 2.27%
Top 10 holdings, total: 27.59%


Top 10 holdings as of 10/31/22
1: Dexcom 3.15%
2: Danaher Corp 3.05%
3: Chipotle Mexican Grill 2.98%
4: Crowdstrike Holdings 2.85%
5: Msci 2.84%
6: Mccormick Md 2.75%
7: Cintas Corp 2.74%
8: Healthequity 2.53%
9: Thermo Fisher Scientific 2.46%
10: Nextera Energy 2.27%
Holdings represent 27.59% of portfolio
Top 10 holdings as of 09/30/22
1: Chipotle Mexican Grill 3.53%
2: Danaher Corp 3.03%
3: Crowdstrike Holdings 3.00%
4: Thermo Fisher Scientific 2.87%
5: Msci 2.65%
6: Mccormick Md 2.57%
7: Regeneron Pharmaceuticals 2.53%
8: Cintas Corp 2.51%
9: Nextera Energy 2.37%
10: Healthequity 2.25%
Holdings represent 27.32% of portfolio
Top 10 holdings as of 08/31/22
1: Chipotle Mexican Grill 3.38%
2: Crowdstrike Holdings 2.99%
3: Danaher Corp 2.84%
4: Thermo Fisher Scientific 2.77%
5: Mccormick Md 2.73%
6: Cintas Corp 2.70%
7: Msci 2.54%
8: Advanced Drainage Systems 2.32%
9: Nextera Energy 2.31%
10: Palo Alto Networks 2.21%
Holdings represent 26.79% of portfolio
Top 10 holdings as of 07/31/22
1: Chipotle Mexican Grill 3.16%
2: Danaher Corp 2.93%
3: Thermo Fisher Scientific 2.89%
4: Crowdstrike Holdings 2.86%
5: Cintas Corp 2.70%
6: Mccormick Md 2.70%
7: Msci 2.60%
8: Adobe 2.28%
9: Edwards Lifesciences Corp 2.26%
10: Nextera Energy 2.19%
Holdings represent 26.56% of portfolio


Portfolio Composition as of 10/31/22

Common stock 97.03%
Cash and net other assets 2.97%

Consider these risks before investing: The value of investments in the fund’s portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general economic, political, or financial market conditions; investor sentiment and market perceptions; government actions; geopolitical events or changes; and factors related to a specific issuer, geography, industry, or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund’s portfolio holdings. Growth stocks may be more susceptible to earnings disappointments, technological obsolescence, falling prices and profits, and the market may not favor growth-style investing. Investments in small and midsize companies increase the risk of greater price fluctuations. International investing involves currency, economic, and political risks. Emerging-market securities have illiquidity and volatility risks. The fund's sustainable and environmental, social, and/or corporate governance (ESG) investment strategy may cause the fund to forego otherwise attractive investment opportunities or may increase or decrease the fund’s exposure to certain types of companies and, therefore, to underperform funds that do not invest with a similar focus. From time to time, the fund may invest a significant portion of its assets in companies in one or more related industries or sectors, which would make the fund more vulnerable to adverse developments affecting those industries or sectors. In evaluating an investment opportunity, we may make investment decisions based on information and data that is incomplete or inaccurate. Due to changes in the products or services of the companies in which the fund invests, the fund may temporarily hold securities that are inconsistent with its sustainable investment criteria. Our investment techniques, analyses, and judgments may not produce the outcome we intend. The investments we select for the fund may not perform as well as other securities that we do not select for the fund. We, or the fund’s other service providers, may experience disruptions or operating errors that could have a negative effect on the fund. You can lose money by investing in the fund. 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.

Top Industry Sectors as of 10/31/22

Information technology 30.07%
Health care 24.08%
Industrials 14.71%
Consumer discretionary 7.62%
Financials 6.14%
Materials 5.59%
Consumer staples 4.29%
Cash and net other assets 2.97%
Utilities 2.27%
 
Other
2.26%
Communication services 2.26%