Putnam Capital Manager

Putnam Focused International Equity Subaccount

The subaccount seeks capital appreciation.

Fund description

The subaccount targets non-U.S. companies with high and sustainable returns on capital, low leverage, and a record of intelligent capital allocation. The portfolio managers aim to acquire stocks at steep discounts to their intrinsic value, and the portfolio will focus on 25 to 35 stocks.

Sales story

Pursuing growth from high-quality but undervalued non-U.S. companiesQuality companies The fund invests in developed and emerging markets, seeking high-quality companies trading at deep discounts to their value.Wide moat advantages We seek companies that have high and sustainable returns on capital, low debt, and leaders with a track record of smart capital allocation.Focused portfolio With 25-35 stock holdings, we aim for better returns and lower risk through intense study of each company.

Management team

Lipper ranking ‡ as of 10/31/22

Category: International Multi-Cp Core Fds

  Percentile ranking Rank/Funds in category
10 yrs. 10% 4/43
1 yr. 99% 61/61
3 yrs. 66% 38/57
5 yrs. 19% 10/54

Risk Characteristics as of 10/31/22

Alpha (%) 0.02
Beta 1.08
R squared 0.91
Standard deviation (3 yrs.) 20.48

‡ 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 32
Turnover (fiscal year end) 114%
Net Assets $163M
Inception Date 05/01/90

Holdings

Taiwan Semiconductor Manufacturing 5.08%
Astrazeneca 4.66%
Constellation Software Canada 4.52%
Ryanair Holdings 4.15%
Unilever 3.90%
Hdfc Bank 3.82%
Berkeley Group Holdings 3.63%
Thomson Reuters Corp 3.52%
Alphabet 3.34%
Sony Group Corp 3.24%
Top 10 holdings, total: 39.86%


Top 10 holdings as of 10/31/22
1: Taiwan Semiconductor Manufacturing 5.08%
2: Astrazeneca 4.66%
3: Constellation Software Canada 4.52%
4: Ryanair Holdings 4.15%
5: Unilever 3.90%
6: Hdfc Bank 3.82%
7: Berkeley Group Holdings 3.63%
8: Thomson Reuters Corp 3.52%
9: Alphabet 3.34%
10: Sony Group Corp 3.24%
Holdings represent 39.86% of portfolio
Top 10 holdings as of 09/30/22
1: Taiwan Semiconductor Manufacturing 5.00%
2: Astrazeneca 4.48%
3: Constellation Software Canada 4.47%
4: Alphabet 3.99%
5: Unilever 3.87%
6: Hdfc Bank 3.77%
7: Bayer Ag 3.66%
8: Thomson Reuters Corp 3.50%
9: Ci Financial Corp 3.46%
10: Naspers 3.45%
Holdings represent 39.63% of portfolio
Top 10 holdings as of 08/31/22
1: Taiwan Semiconductor Manufacturing 5.41%
2: Constellation Software Canada 4.55%
3: Astrazeneca 4.38%
4: Ryanair Holdings 4.25%
5: Prosus Nv 4.13%
6: Alphabet 3.93%
7: Canadian Natural Resources 3.87%
8: Alibaba Group Holding 3.79%
9: Ci Financial Corp 3.79%
10: Bayer Ag 3.64%
Holdings represent 41.73% of portfolio
Top 10 holdings as of 07/31/22
1: Taiwan Semiconductor Manufacturing 5.30%
2: Constellation Software Canada 4.82%
3: Prosus Nv 4.57%
4: Astrazeneca 4.39%
5: Ryanair Holdings 4.02%
6: Alphabet 4.00%
7: Berkeley Group Holdings 3.95%
8: Bayer Ag 3.77%
9: Ci Financial Corp 3.76%
10: Canadian Natural Resources 3.68%
Holdings represent 42.26% of portfolio


Portfolio Composition as of 10/31/22

Common stock 95.42%
Cash and net other assets 4.58%

Consider these risks before investing: International investing involves currency, economic, and political risks. Emerging-market securities carry illiquidity and volatility risks. Investments in small and/or midsize companies increase the risk of greater price fluctuations. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. As a non-diversified fund, the fund invests in fewer issuers and is more vulnerable than a more broadly diversified fund to fluctuations in the values of the securities it holds. Risks associated with derivatives include increased investment exposure (which may be considered leverage) and, in the case of over-the-counter instruments, the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations. 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. The fund will be more susceptible to these risks than other funds because it invests in a limited number of issuers or sectors, and the fund may perform poorly as a result of adverse developments affecting those issuers or sectors. 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.

Sector weightings as of 10/31/22

Information technology 17.61%
Financials 16.10%
Consumer discretionary 14.22%
Health care 13.40%
Industrials 12.44%
Communication services 12.43%
Energy 5.32%
Cash and net other assets 4.58%
Consumer staples 3.90%

Country Allocation as of 10/31/22

Canada 20.99%
United Kingdom 19.91%
Japan 9.66%
South Korea 9.14%
Germany 7.23%
Ireland 6.89%
China 6.12%
Taiwan 5.08%
Cash and net other assets 4.58%
 
Other
10.40%
India 3.82%
United States 3.34%
Netherlands 3.24%