Putnam Hartford Capital Manager

Putnam High Yield Subaccount

The fund seeks high current income. Capital growth is a secondary goal when consistent with achieving high current income.

Fund Description

The subaccount seeks high current income by investing principally in corporate bonds rated below investment grade. It offers the potential for higher income than investment-grade bond funds in exchange for the increased risk that accompanies high-yield bond investments. The subaccount is diversified across a range of industries and the management team conducts intensive research to select companies that appear capable of servicing their outstanding debt obligations.

Sales Story

Seeking a high level of income for investorsIncome-focused: The portfolio managers strive for a higher level of income than most bonds offer by investing in higher-yielding, lower rated corporate bonds.Active risk management: The managers can adjust the fund's holdings to capitalize on market opportunities, such as emphasizing bonds with higher credit quality when credit risk increases.Leading research: The fund's managers, supported by Putnam's fixed-income research division, analyze a range of bonds to build a diversified portfolio.

Management team

‡ Lipper Ranking as of 03/31/14

Category: High Yield-PCM

  Percentile ranking Rank/Funds in category
10 yrs. 38% 26/68
1 yr. 27% 30/112
3 yrs. 50% 53/106
5 yrs. 44% 40/90

Risk Characteristics as of 03/31/14

Avg. Eff. Maturity 6.28
Avg. Price 108.96
Avg. Eff. Duration 3.05
Avg. Coupon 6.90
Avg. Yield to Maturity 5.58
Alpha (%) --
Beta --
R Squared --
Standard Deviation (3 yrs.) 7.10

Maturity Details

0 to 1 yr. 7.46%
1 to 5 yrs. 24.65%
5 to 10 yrs. 63.70%
10 to 15 yrs. 1.65%
Over 15 yrs. 2.54%

Quality Ratings

AAA 0.00%
AA 0.00%
A 0.47%
BBB 5.46%
BB 40.06%
B 34.42%
CCC and Below 13.03%
Not Rated 3.13%
Net cash 3.43%

Maturity detail includes only cash bonds and cash equivalents.

Lower rated bonds may offer higher yields in return for more risk. 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.

Credit qualities are shown as a percentage of net assets. A bond rated Baa or higher (Prime-3 or higher, for short-term debt) is considered investment grade. This chart reflects the highest security rating provided by one or more of Standard & Poor's, Moody's and Fitch. Short-term cash bonds rated A-1+ are included in the AAA-rating category. Ratings and portfolio credit quality will vary over time. Credit quality includes the fixed-income portion of the portfolio. Derivative instruments, including currency forwards, are only included to the extent of any unrealized gain or loss on such instruments and are shown in the not-rated category. Cash is also shown in the not-rated category. The fund itself has not been rated by an independent rating agency.

You can lose money by investing in a fund. Any given fund may not achieve its goal, and is not intended as a complete investment program. All funds have risk. The value and/or returns of a portfolio will fluctuate with market conditions. You may have more or less than the original amount invested when you redeem your shares.

‡ 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.