Putnam Allstate Advisor

Putnam Global Health Care Subaccount

The subaccount seeks capital appreciation.

Fund description

The subaccount seeks to capitalize on the strength of the health-care sector, targeting companies of all sizes. Holdings encompass an array of industries, including pharmaceuticals, health-care services, and biotechnology. The fund seeks companies that offer strong long-term growth prospects, regardless of their size.

Sales story

Investing in the health-care sectorA dynamic sector: From biotech to pharmaceuticals, the fund seeks out companies that profit from the global demand for health care.A range of companies: The fund invests worldwide in businesses at different stages of growth, from rapidly growing newer companies to established global corporations.Actively managed: Unlike passively managed ETFs, Putnam global sector funds combine rigorous fundamental research and disciplined quantitative analysis with macroeconomic views.

Management team

Daily pricing as of 11/17/17

with optional enhanced death benefits
Unit Value $28.336306 $27.548624
Unit Value Change -0.035554 -0.034679

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 10/31/17

Fiscal Year End December
Asset Class Putnam Allstate Advisor
Subaccount Status Open to new investors
Number of issues 47
Turnover (fiscal year end) 24%
Net Assets $145M
Inception Date 05/01/98

Performance

Performance as of 09/30/17

Annualized Performance Last Quarter Year
to Date
1 yr. 3 yrs. 5 yrs. 10 yrs. Life of
subaccount
Restated performance
Unit Value 2.18% 16.72% 9.64% 4.98% 14.00% 8.34% 5.49%
Standardized -6.71% 6.81% 0.23% 0.21% 11.32% 5.49% 2.32%
With optional enhanced death benefit
Unit Value 2.14% 16.59% 9.48% 4.82% 13.82% 8.17% 5.33%
Standardized -6.75% 6.69% 0.08% 0.06% 11.13% 5.31% 2.10%
Actual performance
Unit Value 2.18% 16.72% 9.64% 4.98% 14.00% 8.34% 5.97%
Standardized -6.71% 6.81% 0.23% 0.21% 11.32% 5.49% 3.03%
With optional enhanced death benefit
Unit Value 2.14% 16.59% 9.48% 4.82% 13.82% 8.17% 5.81%
Standardized -6.75% 6.69% 0.08% 0.06% 11.13% 5.31% 2.83%

Annual Performance at NAV

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
-1.85% -18.11% 24.43% 1.19% -2.41% 20.74% 39.89% 26.05% 6.44% -12.46%
With optional enhanced death benefit
-2.00% -18.24% 24.24% 1.03% -2.56% 20.55% 39.68% 25.86% 6.28% -12.59%

Restated performance

Monthly as of 10/31/17

Unit Value -2.67%
Standardized -11.22%

YTD as of 11/17/17

Unit Value 13.68%
Standardized 3.98%

With optional enhanced death benefit

Monthly as of 10/31/17

Unit Value -2.68%
Standardized -11.23%

YTD as of 11/17/17

Unit Value 13.53%
Standardized 3.84%

Unit values and performance information shown apply to the specific annuity product listed, not the underlying Putnam Variable Trust fund. This information should not be used by investors who hold an interest in Putnam Variable Trust funds through a different annuity or other variable product. The unit values and performance of other variable products that offer Putnam Variable Trust funds may be higher or lower due to product charges and expenses or other factors.

Data is historical. Past performance is no guarantee of future results. More recent returns may be less or more than those shown. Investment return and principal value will fluctuate, and you may have a gain or a loss when you sell your units.

Returns shown for the subaccounts for periods before their inception are derived from the historical performance of the underlying fund, adjusted to reflect the mortality, expense risk, and surrender charges applicable to this product and do not factor in the annual $30 contract maintenance fee. Additional riders and options for insurance-related charges will increase expenses and lower returns. Please see the prospectus for details. For a portion of the period, subaccounts may have limited expenses, without which returns would have been lower.

Variable annuities are long-term investments designed for retirement purposes. Putnam Hartford products are flexible-premium variable annuities issued by Hartford Life and Annuity Insurance Company, Simsbury, CT.

Putnam Allstate variable annuities are flexible-premium deferred variable annuities issued by Allstate Life Insurance Company (Allstate Life); underwritten by Allstate Distributors, L.L.C., both of Northbrook, IL; and sold through registered representatives or bank employees who are licensed insurance agents. Please check for availability in your specific state.

These policies have limitations and are sold by prospectus only. The prospectus contains details on the variable annuity, the subaccounts, contract features, fees, expenses, and other pertinent information.

Investors should carefully consider the investment objectives, risks, charges, and expenses of a fund before investing. For a prospectus containing this and other information for any variable annuity or variable life product that invests in Putnam Variable Trust funds, contact your financial advisor for a contract prospectus and prospectus for the underlying funds. You may also call Hartford at 1-800-521-0538 or Allstate at 1-800-390-1277. Read the prospectuses carefully before investing.

For the most recent month-end performance, please call Hartford at 1-800-521-0538 or Allstate at 1-800-390-1277.

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.

Risk Characteristics as of 10/31/17

Alpha (%) -1.85
Beta 1.09
R Squared 0.93
Standard Deviation (3 yrs.) 13.35

Holdings

Top 10 holdings as of 10/31/17

UnitedHealth Group 5.98%
Amgen 5.50%
Jazz Pharmaceuticals 5.29%
Becton Dickinson And 5.27%
Biogen 5.12%
Danaher Corp 5.01%
Bayer Ag 4.99%
Novartis Ag 4.38%
Johnson & Johnson 4.34%
Vertex Pharmaceuticals 4.09%
Top 10 holdings, total: 49.97%

Equity Holdings as of 09/30/17

UNITEDHEALTH GROUP INC 5.37%
AMGEN INC 5.02%
BECTON DICKINSON AND CO 4.72%
JAZZ PHARMACEUTICALS PLC 4.62%
NOVARTIS AG-REG 4.38%
BAYER AG-REG 4.25%
DANAHER CORP 4.03%
JOHNSON & JOHNSON 3.90%
BIOGEN INC 3.71%
CELGENE CORP 3.69%
SANOFI 3.62%
GILEAD SCIENCES INC 3.30%
MERCK & CO. INC. 3.14%
ROCHE HOLDING AG-GENUSSCHEIN 2.88%
ASTRAZENECA PLC 2.83%
BOSTON SCIENTIFIC CORP 2.78%
VERTEX PHARMACEUTICALS INC 2.44%
PFIZER INC 2.41%
DENTSPLY SIRONA INC 2.40%
SHIRE PLC 1.99%
CLOVIS ONCOLOGY INC 1.98%
INTUITIVE SURGICAL INC 1.74%
BRISTOL-MYERS SQUIBB CO 1.70%
REGENERON PHARMACEUTICALS 1.69%
MCKESSON CORP 1.64%
AGILENT TECHNOLOGIES INC 1.48%
MEDICINES COMPANY 1.48%
CHUGAI PHARMACEUTICAL CO LTD 1.45%
GLAXOSMITHKLINE PLC 1.23%
SHIONOGI & CO LTD 1.06%
BIOVERATIV INC 1.01%
WALGREENS BOOTS ALLIANCE INC 0.92%
CLINIGEN GROUP PLC 0.87%
PACIRA PHARMACEUTICALS INC 0.83%
BIO-RAD LABORATORIES-A 0.81%
ALNYLAM PHARMACEUTICALS INC 0.80%
GRIFOLS SA-ADR 0.74%
ACLARIS THERAPEUTICS INC 0.73%
PENUMBRA INC 0.65%
CHINA BIOLOGIC PRODUCTS HOLD 0.58%
ILLUMINA INC 0.58%
AIN HOLDINGS INC 0.56%
NIPPON SHINYAKU CO LTD 0.56%
FRESENIUS MEDICAL CARE AG & 0.47%
GENMARK DIAGNOSTICS INC 0.40%
AUROBINDO PHARMA LTD 0.39%
ASPEN PHARMACARE HOLDINGS LT 0.35%
PROTHENA CORP PLC 0.27%
FEDERAL STREET ACQUISITION 0.26%
OVID THERAPEUTICS INC - RESTRICTED 0.18%
ZUR ROSE GROUP AG 0.16%
SINOPHARM GROUP CO-H 0.09%
HTG MOLECULAR DIAGNOSTICS 0.01%
NEURALSTEM INC SERIES K COMMON STOCK PURCHASE WARRANT 0.00%

Full Portfolio Holdings as of 09/30/17

UNITEDHEALTH GROUP INC 5.37%
AMGEN INC 5.02%
BECTON DICKINSON AND CO 4.72%
JAZZ PHARMACEUTICALS PLC 4.62%
NOVARTIS AG-REG 4.38%
BAYER AG-REG 4.25%
DANAHER CORP 4.03%
JOHNSON & JOHNSON 3.90%
BIOGEN INC 3.71%
CELGENE CORP 3.69%
SANOFI 3.62%
GILEAD SCIENCES INC 3.30%
MERCK & CO. INC. 3.14%
ROCHE HOLDING AG-GENUSSCHEIN 2.88%
ASTRAZENECA PLC 2.83%
BOSTON SCIENTIFIC CORP 2.78%
VERTEX PHARMACEUTICALS INC 2.44%
PFIZER INC 2.41%
DENTSPLY SIRONA INC 2.40%
SHIRE PLC 1.99%
CLOVIS ONCOLOGY INC 1.98%
INTUITIVE SURGICAL INC 1.74%
BRISTOL-MYERS SQUIBB CO 1.70%
REGENERON PHARMACEUTICALS 1.69%
MCKESSON CORP 1.64%
AGILENT TECHNOLOGIES INC 1.48%
MEDICINES COMPANY 1.48%
CHUGAI PHARMACEUTICAL CO LTD 1.45%
GLAXOSMITHKLINE PLC 1.23%
SHIONOGI & CO LTD 1.06%
BIOVERATIV INC 1.01%
WALGREENS BOOTS ALLIANCE INC 0.92%
CLINIGEN GROUP PLC 0.87%
PACIRA PHARMACEUTICALS INC 0.83%
BIO-RAD LABORATORIES-A 0.81%
ALNYLAM PHARMACEUTICALS INC 0.80%
GRIFOLS SA-ADR 0.74%
ACLARIS THERAPEUTICS INC 0.73%
PENUMBRA INC 0.65%
CHINA BIOLOGIC PRODUCTS HOLD 0.58%
ILLUMINA INC 0.58%
AIN HOLDINGS INC 0.56%
NIPPON SHINYAKU CO LTD 0.56%
FRESENIUS MEDICAL CARE AG & 0.47%
GENMARK DIAGNOSTICS INC 0.40%
AUROBINDO PHARMA LTD 0.39%
ASPEN PHARMACARE HOLDINGS LT 0.35%
PROTHENA CORP PLC 0.27%
FEDERAL STREET ACQUISITION 0.26%
OVID THERAPEUTICS INC - RESTRICTED 0.18%
ZUR ROSE GROUP AG 0.16%
SINOPHARM GROUP CO-H 0.09%
EUR/USD 12/20/2017 BANKAM 0.02%
CHF/USD 12/20/2017 JPMCB 0.01%
DKK/USD 12/20/2017 CITI 0.01%
HTG MOLECULAR DIAGNOSTICS 0.01%
AUD/USD 10/18/2017 HSBCB 0.00%
INDIAN RUPEE CALL ACCOUNT 0.00%
JPY/USD 11/15/2017 CSI-FX 0.00%
NEURALSTEM INC SERIES K COMMON STOCK PURCHASE WARRANT 0.00%
POUND STERLING CALL ACCOUNT 0.00%

Prior top 10 holdings

Top 10 holdings as of 10/31/17
1: UnitedHealth Group 5.98%
2: Amgen 5.50%
3: Jazz Pharmaceuticals 5.29%
4: Becton Dickinson And 5.27%
5: Biogen 5.12%
6: Danaher Corp 5.01%
7: Bayer Ag 4.99%
8: Novartis Ag 4.38%
9: Johnson & Johnson 4.34%
10: Vertex Pharmaceuticals 4.09%
Holdings represent 49.97% of portfolio
Top 10 holdings as of 09/30/17
1: UnitedHealth Group 5.37%
2: Amgen 5.02%
3: Becton Dickinson And 4.72%
4: Jazz Pharmaceuticals 4.62%
5: Novartis Ag 4.38%
6: Bayer Ag 4.25%
7: Danaher Corp 4.03%
8: Johnson & Johnson 3.90%
9: Biogen 3.71%
10: Celgene Corp 3.69%
Holdings represent 43.69% of portfolio
Top 10 holdings as of 08/31/17
1: UnitedHealth Group 5.49%
2: Amgen 4.84%
3: Becton Dickinson And 4.84%
4: Jazz Pharmaceuticals 4.75%
5: Novartis Ag 4.30%
6: Bayer Ag 4.04%
7: Danaher Corp 3.96%
8: Johnson & Johnson 3.95%
9: Biogen 3.77%
10: Celgene Corp 3.55%
Holdings represent 43.49% of portfolio
Top 10 holdings as of 07/31/17
1: UnitedHealth Group 5.30%
2: Becton Dickinson And 4.90%
3: Jazz Pharmaceuticals 4.89%
4: Amgen 4.76%
5: Novartis Ag 4.34%
6: Bayer Ag 4.01%
7: Biogen 3.99%
8: Johnson & Johnson 3.96%
9: Danaher Corp 3.87%
10: Sanofi 3.47%
Holdings represent 43.49% of portfolio

Portfolio Composition as of 10/31/17

Common stock 98.27%
Cash and net other assets 1.73%

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 10/31/17

Pharmaceuticals 43.33%
Biotechnology 24.74%
Health Care Equipment & Supplies 19.15%
Health Care Providers & Services 6.56%
Life Sciences Tools & Services 3.46%
Cash and net other assets 1.73%
Food & Staples Retailing 0.76%
Diversified Financial Services 0.26%
Health Care Technology 0.01%

Country Allocation as of 10/31/17

United States 68.26%
Switzerland 7.26%
United Kingdom 7.12%
Germany 5.48%
Japan 4.51%
France 3.59%
Cash and net other assets 1.73%
Spain 0.83%
China 0.60%
 
Other
0.62%
South Africa 0.37%
Ireland 0.25%

Expenses

Sales Charges/Fees

Breakpoint Sales Charge Dealer Allowance CDSC Liab
$0 - $0 0.00% 0.00% N

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.

CDSC

Year Percent
1 7.00%
2 7.00%
3 6.00%
4 5.00%
5 4.00%
6 3.00%
7 2.00%
8+ 0.00%