Putnam Hartford Capital Manager

Putnam Sustainable Leaders Subaccount

The subaccount seeks long-term capital appreciation.

Fund description

The subaccount invests in companies of all sizes across a range of industry sectors. The management team looks for stocks of innovative companies that are positioned in sectors believed to offer exceptional growth potential. The fund targets companies with strong management and superior financial characteristics.

Sales story

Investing in growing companies committed to sustainable practicesCommitted companies: The fund invests in growth companies with the goal of delivering positive financial and ESG performance.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 06/30/18

Category: Multi-Cap Growth Funds

  Percentile ranking Rank/Funds in category
10 yrs. 45% 35/78
1 yr. 60% 59/98
3 yrs. 35% 34/97
5 yrs. 30% 28/95

Risk Characteristics as of 06/30/18

Alpha (%) -2.66
Beta 1.07
R squared 0.96
Standard deviation (3 yrs.) 12.02

The fund invests all or a portion of its assets in small to midsize companies. Such investments increase the risk of greater price fluctuations. 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. Growth investing targets companies with above-average earnings that may be subject to price volatility if earnings expectations are not met.

‡ 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 06/30/18

Fiscal Year End December
Asset Class Putnam Hartford Capital Manager
Subaccount Status Open to new investors
Number of issues 79
Turnover (fiscal year end) 71%
Net Assets $760M
Inception Date 05/02/94

Holdings

Top 10 holdings as of 06/30/18

Microsoft Corp 4.82%
Alphabet 4.11%
Novozymes A/S - B Shares 3.96%
Amazon.Com 3.80%
Visa 3.77%
Unilever Nv 3.18%
Becton Dickinson And 3.04%
Norfolk Southern Corp 2.94%
Home Depot The 2.76%
Blackrock 2.73%
Top 10 holdings, total: 35.11%

Equity Holdings as of 03/31/18

ALPHABET INC-CL C 5.58%
AMAZON.COM INC 5.58%
MICROSOFT CORP 4.60%
VISA INC-CLASS A SHARES 3.49%
APPLE INC 3.45%
BLACKROCK INC 3.04%
BECTON DICKINSON AND CO 2.80%
NORFOLK SOUTHERN CORP 2.75%
HOME DEPOT INC 2.62%
DANAHER CORP 2.54%
BANK OF AMERICA CORP 2.39%
HEINEKEN NV 2.30%
APPLIED MATERIALS INC 1.96%
DXC TECHNOLOGY CO 1.95%
PRUDENTIAL PLC 1.95%
UNITEDHEALTH GROUP INC 1.87%
MCCORMICK & CO-NON VTG SHRS 1.75%
PAYPAL HOLDINGS INC 1.73%
ALIBABA GROUP HOLDING-SP ADR 1.72%
FORTIVE CORP 1.70%
STMICROELECTRONICS NV-NY SHS 1.67%
ADOBE SYSTEMS INC 1.64%
UNILEVER NV-CVA 1.63%
NOVOZYMES A/S-B SHARES 1.56%
BOSTON SCIENTIFIC CORP 1.42%
SALESFORCE.COM INC 1.41%
OKTA INC 1.17%
KION GROUP AG 1.10%
LIVE NATION ENTERTAINMENT IN 1.10%
LOWES COMPANIES INC 1.07%
CHIPOTLE MEXICAN GRILL INC 1.05%
ECOLAB INC 1.05%
OWENS CORNING 1.05%
SCHWAB (CHARLES) CORP 1.02%
E*TRADE FINANCIAL CORPORATION 1.01%
ROPER TECHNOLOGIES INC 1.01%
SERVICENOW INC 1.01%
HONEYWELL INTERNATIONAL INC 1.00%
VERTEX PHARMACEUTICALS INC 1.00%
ACCENTURE PLC-CL A 0.98%
ON SEMICONDUCTOR CORP 0.98%
TALEND SA - ADR 0.98%
CHARTER COMMUNICATIONS INC-A 0.97%
PENUMBRA INC 0.91%
HILTON WORLDWIDE HOLDINGS IN 0.89%
ROCKWELL AUTOMATION INC 0.89%
AMERICAN TOWER CORP 0.87%
REALPAGE INC 0.87%
ADIDAS AG 0.85%
CONSTELLATION BRANDS INC-A 0.85%
DENTSPLY SIRONA INC 0.77%
PRAXAIR INC 0.77%
SUNCOR ENERGY INC 0.74%
FORTUNE BRANDS HOME & SECURI 0.70%
JAZZ PHARMACEUTICALS PLC 0.65%
CELLNEX TELECOM SAU 0.64%
ACTIVISION BLIZZARD INC 0.59%
NEXTERA ENERGY INC 0.57%
SUMMIT MATERIALS INC -CL A 0.56%
MEDICINES COMPANY 0.54%
VAIL RESORTS INC 0.52%
BIOGEN INC 0.51%
STANLEY BLACK & DECKER INC 0.50%
AGILENT TECHNOLOGIES INC 0.49%
BLUEBIRD BIO INC 0.47%
CHALLENGER LTD 0.43%
CLOVIS ONCOLOGY INC 0.43%
BIO-RAD LABORATORIES-A 0.41%
BROOKS AUTOMATION INC 0.28%
OPORTUN FIN CORP P/P SERIES H PFD 0.12%
SELECT ENERGY SVCS-A-1 0.12%
OPORTUN FIN G-1 PFD CV P/P 0.04%
OPORTUN FIN CORP P/P 0.03%
OPORTUN FIN F-1 PFD CV P/P 0.03%
GLOBAL FASHION GRP P/P 0.02%
OPORTUN FIN D-1 PFD CV P/P 0.01%
OPORTUN FIN F PFD CV P/P 0.01%
HC BRILLANT SERVICES GMBH P/P 0.00%
NEURALSTEM INC SERIES K COMMON STOCK PURCHASE WARRANT 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 E-1 PFD CV P/P 0.00%

Full Portfolio Holdings as of 03/31/18

ALPHABET INC-CL C 5.58%
AMAZON.COM INC 5.58%
MICROSOFT CORP 4.60%
VISA INC-CLASS A SHARES 3.49%
APPLE INC 3.45%
BLACKROCK INC 3.04%
BECTON DICKINSON AND CO 2.80%
NORFOLK SOUTHERN CORP 2.75%
HOME DEPOT INC 2.62%
DANAHER CORP 2.54%
BANK OF AMERICA CORP 2.39%
HEINEKEN NV 2.30%
APPLIED MATERIALS INC 1.96%
DXC TECHNOLOGY CO 1.95%
PRUDENTIAL PLC 1.95%
UNITEDHEALTH GROUP INC 1.87%
MCCORMICK & CO-NON VTG SHRS 1.75%
PAYPAL HOLDINGS INC 1.73%
ALIBABA GROUP HOLDING-SP ADR 1.72%
FORTIVE CORP 1.70%
STMICROELECTRONICS NV-NY SHS 1.67%
ADOBE SYSTEMS INC 1.64%
UNILEVER NV-CVA 1.63%
NOVOZYMES A/S-B SHARES 1.56%
BOSTON SCIENTIFIC CORP 1.42%
SALESFORCE.COM INC 1.41%
OKTA INC 1.17%
KION GROUP AG 1.10%
LIVE NATION ENTERTAINMENT IN 1.10%
LOWES COMPANIES INC 1.07%
CHIPOTLE MEXICAN GRILL INC 1.05%
ECOLAB INC 1.05%
OWENS CORNING 1.05%
SCHWAB (CHARLES) CORP 1.02%
E*TRADE FINANCIAL CORPORATION 1.01%
ROPER TECHNOLOGIES INC 1.01%
SERVICENOW INC 1.01%
HONEYWELL INTERNATIONAL INC 1.00%
VERTEX PHARMACEUTICALS INC 1.00%
ACCENTURE PLC-CL A 0.98%
ON SEMICONDUCTOR CORP 0.98%
TALEND SA - ADR 0.98%
CHARTER COMMUNICATIONS INC-A 0.97%
PENUMBRA INC 0.91%
HILTON WORLDWIDE HOLDINGS IN 0.89%
ROCKWELL AUTOMATION INC 0.89%
AMERICAN TOWER CORP 0.87%
REALPAGE INC 0.87%
ADIDAS AG 0.85%
CONSTELLATION BRANDS INC-A 0.85%
DENTSPLY SIRONA INC 0.77%
PRAXAIR INC 0.77%
SUNCOR ENERGY INC 0.74%
FORTUNE BRANDS HOME & SECURI 0.70%
JAZZ PHARMACEUTICALS PLC 0.65%
CELLNEX TELECOM SAU 0.64%
ACTIVISION BLIZZARD INC 0.59%
NEXTERA ENERGY INC 0.57%
SUMMIT MATERIALS INC -CL A 0.56%
MEDICINES COMPANY 0.54%
VAIL RESORTS INC 0.52%
BIOGEN INC 0.51%
STANLEY BLACK & DECKER INC 0.50%
AGILENT TECHNOLOGIES INC 0.49%
BLUEBIRD BIO INC 0.47%
CHALLENGER LTD 0.43%
CLOVIS ONCOLOGY INC 0.43%
BIO-RAD LABORATORIES-A 0.41%
BROOKS AUTOMATION INC 0.28%
OPORTUN FIN CORP P/P SERIES H PFD 0.12%
SELECT ENERGY SVCS-A-1 0.12%
OPORTUN FIN G-1 PFD CV P/P 0.04%
OPORTUN FIN CORP P/P 0.03%
OPORTUN FIN F-1 PFD CV P/P 0.03%
GLOBAL FASHION GRP P/P 0.02%
OPORTUN FIN D-1 PFD CV P/P 0.01%
OPORTUN FIN F PFD CV P/P 0.01%
AUD/USD 04/18/2018 SSBT 0.00%
AUSTRALIAN DOLLAR ACCOUNT 0.00%
CANADIAN DOLLAR ACCOUNT 0.00%
EUR/USD 06/20/2018 SSBT 0.00%
GBP/USD 06/20/2018 BANKAM 0.00%
HC BRILLANT SERVICES GMBH P/P 0.00%
KOREAN WON CALL ACCOUNT 0.00%
NEURALSTEM INC SERIES K COMMON STOCK PURCHASE WARRANT 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 E-1 PFD CV P/P 0.00%
POUND STERLING CALL ACCOUNT 0.00%
THE EURO EUR CALL ACCOUNT 0.00%
EUR/USD 06/20/2018 JPMCB -0.01%
EUR/USD 06/20/2018 UBS -0.01%

Prior top 10 holdings

Top 10 holdings as of 06/30/18
1: Microsoft Corp 4.82%
2: Alphabet 4.11%
3: Novozymes A/S - B Shares 3.96%
4: Amazon.Com 3.80%
5: Visa 3.77%
6: Unilever Nv 3.18%
7: Becton Dickinson And 3.04%
8: Norfolk Southern Corp 2.94%
9: Home Depot The 2.76%
10: Blackrock 2.73%
Holdings represent 35.11% of portfolio
Top 10 holdings as of 05/31/18
1: Microsoft Corp 4.77%
2: Alphabet 3.95%
3: Novozymes A/S - B Shares 3.93%
4: Visa 3.67%
5: Amazon.Com 3.60%
6: Unilever Nv 3.14%
7: Norfolk Southern Corp 2.92%
8: Blackrock 2.89%
9: Becton Dickinson And 2.77%
10: Home Depot The 2.61%
Holdings represent 34.25% of portfolio
Top 10 holdings as of 04/30/18
1: Amazon.Com 5.52%
2: Alphabet 5.52%
3: Microsoft Corp 4.73%
4: Visa 3.72%
5: Apple 3.41%
6: Becton Dickinson And 3.01%
7: Blackrock 2.94%
8: Norfolk Southern Corp 2.92%
9: Home Depot The 2.73%
10: Danaher Corp 2.61%
Holdings represent 37.11% of portfolio
Top 10 holdings as of 03/31/18
1: Amazon.Com 5.58%
2: Alphabet 5.58%
3: Microsoft Corp 4.60%
4: Visa 3.49%
5: Apple 3.45%
6: Blackrock 3.04%
7: Becton Dickinson And 2.80%
8: Norfolk Southern Corp 2.75%
9: Home Depot The 2.62%
10: Danaher Corp 2.54%
Holdings represent 36.45% of portfolio

Portfolio Composition as of 06/30/18

Common stock 98.04%
Cash and net other assets 1.75%
Convertible preferred stock 0.21%

Portfolio characteristics 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. 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. Growth investing targets companies with above-average earnings that may be subject to price volatility if earnings expectations are not met.

Top Industry Sectors as of 06/30/18

Information technology 30.53%
Financials 13.26%
Consumer discretionary 12.86%
Health care 12.73%
Consumer staples 9.10%
Materials 8.68%
Industrials 7.35%
Utilities 2.33%
Cash and net other assets 1.75%
 
Other
1.41%
Real estate 0.83%
Telecommunication services 0.58%