Putnam Capital Manager

Putnam Global Utilities Subaccount

The subaccount seeks capital growth and current income.

Fund description

The subaccount pursues its objective of growth and income by targeting a wide range of utilities, including natural gas, electric, and communication services companies. By investing in stocks and bonds of well-managed utilities that Putnam believes are priced below their underlying worth, the subaccount seeks consistent performance in all market environments.

Sales story

Investing in the utilities sectorA dynamic sector: From distribution to power storage, the fund seeks out companies that profit from the growth of and demand for utilities.A diversified approach: The fund may invest in domestic and foreign markets, and companies of different sizes across several industries and varying degrees of regulation.Actively managed: Unlike passively managed ETFs, Putnam global sector funds combine rigorous fundamental research and disciplined quantitative analysis with macroeconomic views.

Management team

The fund concentrates its investments in one region or in one sector and involves more risk than a fund that invests more broadly. 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 10/31/18

Fiscal Year End December
Asset Class Putnam Capital Manager
Subaccount Status Open to new investors
Number of issues 41
Turnover (fiscal year end) 43%
Net Assets $61M
Inception Date 05/01/92

Holdings

Top 10 holdings as of 10/31/18

Nextera Energy 9.76%
American Electric Power 7.11%
Dominion Energy 5.49%
Exelon Corp 5.10%
Sse 3.73%
Duke Energy Corp 3.62%
Nrg Energy 3.49%
Edison International 3.44%
National Grid 3.30%
Eversource Energy 3.22%
Top 10 holdings, total: 48.26%

Represents equity portion of portfolio.

Equity Holdings as of 09/30/18

NEXTERA ENERGY INC 9.50%
AMERICAN ELECTRIC POWER 6.70%
EXELON CORP 5.69%
DOMINION ENERGY INC 5.28%
SSE PLC 4.06%
DUKE ENERGY CORP 3.42%
NRG ENERGY INC 3.42%
EDISON INTERNATIONAL 3.41%
ENEL SPA 3.34%
EVERSOURCE ENERGY 3.30%
IBERDROLA SA 3.09%
FORTUM OYJ 3.05%
FIRSTENERGY CORP 2.82%
P G & E CORP 2.78%
CMS ENERGY CORP 2.49%
NATURGY ENERGY GROUP SA 2.40%
UNIPER SE 2.39%
VEOLIA ENVIRONNEMENT 2.39%
AMEREN CORPORATION 2.37%
SOUTHERN CO/THE 2.18%
KINDER MORGAN INC 2.16%
ENTERPRISE PRODUCTS PARTNERS 1.95%
NATIONAL GRID PLC 1.93%
PUBLIC SERVICE ENTERPRISE GP 1.80%
ENDESA S.A. 1.57%
E.ON SE 1.56%
KANSAI ELECTRIC POWER CO INC 1.42%
ENGIE 1.37%
SEMPRA ENERGY 1.32%
TOKYO GAS CO LTD 1.26%
XCEL ENERGY INC 1.13%
CK INFRASTRUCTURE HOLDINGS L 1.09%
HONG KONG & CHINA GAS 0.87%
KYUSHU ELECTRIC POWER CO INC 0.87%
CLP HOLDINGS LTD 0.85%
PPL CORP 0.71%
ELECTRIC POWER DEVELOPMENT C 0.56%
ORSTED A/S 0.52%
CENTERPOINT ENERGY INC 0.51%
CHUBU ELECTRIC POWER CO INC 0.51%
EDF 0.34%
SCANA CORP 0.24%
CHINA WATER AFFAIRS GROUP 0.09%

Full Portfolio Holdings as of 09/30/18

NEXTERA ENERGY INC 9.50%
AMERICAN ELECTRIC POWER 6.70%
EXELON CORP 5.69%
DOMINION ENERGY INC 5.28%
SSE PLC 4.06%
DUKE ENERGY CORP 3.42%
NRG ENERGY INC 3.42%
EDISON INTERNATIONAL 3.41%
ENEL SPA 3.34%
EVERSOURCE ENERGY 3.30%
IBERDROLA SA 3.09%
FORTUM OYJ 3.05%
FIRSTENERGY CORP 2.82%
P G & E CORP 2.78%
CMS ENERGY CORP 2.49%
NATURGY ENERGY GROUP SA 2.40%
UNIPER SE 2.39%
VEOLIA ENVIRONNEMENT 2.39%
AMEREN CORPORATION 2.37%
SOUTHERN CO/THE 2.18%
KINDER MORGAN INC 2.16%
ENTERPRISE PRODUCTS PARTNERS 1.95%
NATIONAL GRID PLC 1.93%
PUBLIC SERVICE ENTERPRISE GP 1.80%
ENDESA S.A. 1.57%
E.ON SE 1.56%
KANSAI ELECTRIC POWER CO INC 1.42%
ENGIE 1.37%
SEMPRA ENERGY 1.32%
TOKYO GAS CO LTD 1.26%
XCEL ENERGY INC 1.13%
CK INFRASTRUCTURE HOLDINGS L 1.09%
HONG KONG & CHINA GAS 0.87%
KYUSHU ELECTRIC POWER CO INC 0.87%
CLP HOLDINGS LTD 0.85%
PPL CORP 0.71%
ELECTRIC POWER DEVELOPMENT C 0.56%
ORSTED A/S 0.52%
CENTERPOINT ENERGY INC 0.51%
CHUBU ELECTRIC POWER CO INC 0.51%
HONG KONG DOLLAR CALL ACCOUNT 0.48%
EDF 0.34%
DANISH KRONE CALL ACCOUNT 0.25%
SCANA CORP 0.24%
CHINA WATER AFFAIRS GROUP 0.09%
EUR/USD 12/19/2018 JPMCB 0.03%
DKK/USD 12/19/2018 CITI 0.01%
AUD/USD 10/17/2018 BANKAM 0.00%
AUD/USD 10/17/2018 CITI 0.00%
AUD/USD 10/17/2018 UBS 0.00%
CAD/USD 10/17/2018 CITI 0.00%
EUR/USD 12/19/2018 BCAP-FX 0.00%
GBP/USD 12/19/2018 BANKAM 0.00%
GBP/USD 12/19/2018 BCAP-FX 0.00%
GBP/USD 12/19/2018 JPMCB 0.00%
HKD/USD 11/19/2018 BANKAM 0.00%
HKD/USD 11/19/2018 BCAP-FX 0.00%
JPY/USD 11/19/2018 GSFX 0.00%
JPY/USD 11/19/2018 JPMCB 0.00%
NZD/USD 10/17/2018 GSFX 0.00%
POUND STERLING CALL ACCOUNT 0.00%
EUR/USD 12/19/2018 BANKAM -0.01%
EUR/USD 12/19/2018 SSBT -0.01%
CAD/USD 10/17/2018 JPMCB -0.02%
EUR/USD 12/19/2018 HSBCB -0.02%
THE EURO EUR CALL ACCOUNT -0.35%
JAPANESE YEN CALL ACCOUNT -0.54%

Prior top 10 holdings

Top 10 holdings as of 10/31/18
1: Nextera Energy 9.76%
2: American Electric Power 7.11%
3: Dominion Energy 5.49%
4: Exelon Corp 5.10%
5: Sse 3.73%
6: Duke Energy Corp 3.62%
7: Nrg Energy 3.49%
8: Edison International 3.44%
9: National Grid 3.30%
10: Eversource Energy 3.22%
Holdings represent 48.26% of portfolio
Top 10 holdings as of 09/30/18
1: Nextera Energy 9.50%
2: American Electric Power 6.70%
3: Exelon Corp 5.69%
4: Dominion Energy 5.28%
5: Sse 4.06%
6: Duke Energy Corp 3.42%
7: Edison International 3.41%
8: Enel Spa 3.34%
9: Eversource Energy 3.30%
10: Nrg Energy 3.28%
Holdings represent 47.98% of portfolio
Top 10 holdings as of 08/31/18
1: Nextera Energy 9.65%
2: American Electric Power 6.69%
3: Exelon Corp 5.59%
4: Dominion Energy 5.22%
5: Sse 3.96%
6: Nrg Energy 3.34%
7: Iberdrola 3.33%
8: Fortum Oyj 3.27%
9: Edison International 3.25%
10: Eversource Energy 3.21%
Holdings represent 47.51% of portfolio
Top 10 holdings as of 07/31/18
1: Nextera Energy 9.83%
2: American Electric Power 6.80%
3: Dominion Energy 6.09%
4: Exelon Corp 5.37%
5: Sse 4.21%
6: Fortum Oyj 4.01%
7: Veolia Environnement 3.54%
8: Edison International 3.51%
9: Uniper 3.49%
10: Iberdrola 3.44%
Holdings represent 50.29% of portfolio

Portfolio Composition as of 10/31/18

Common stock 98.63%
Cash and net other assets 1.37%

Portfolio allocations vary over time. The fund concentrates its investments in one region or in one sector and involves more risk than a fund that invests more broadly. 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.

Top Industry Sectors as of 10/31/18

Electric Utilities 59.01%
Multi-Utilities 25.52%
Independent Power and Renewable Electricity Producers 6.36%
Gas Utilities 4.16%
Oil, Gas & Consumable Fuels 3.20%
Cash and net other assets 1.37%
Water Utilities 0.38%

Country Allocation as of 10/31/18

United States 65.75%
United Kingdom 7.03%
Spain 4.75%
Japan 4.71%
Germany 4.56%
Italy 3.08%
France 2.93%
Finland 2.62%
Hong Kong 2.32%
 
Other
2.25%
Cash and net other assets 1.37%
Denmark 0.50%
China 0.38%