Putnam Allstate Advisor

Putnam Government Money Market Subaccount

The subaccount seeks as high a rate of current income as Putnam Management believes is consistent with preservation of capital and maintenance of liquidity.

Fund description

Prior to April 30, 2016, the fund was known as Putnam Money Market Subaccount.

With an emphasis on high-quality, short-term fixed-income securities, this subaccount seeks to protect principal by attempting to maintain a constant $1.00 share price while providing shareholders with easy access to their money.

Sales story

Pursuing income while preserving capital with short-term investmentsCapital preservation: The fund invests in highly rated money market instruments to maintain a stable net asset value and protect investors' wealth.Attractive income: The portfolio managers use credit research to select a diverse portfolio of securities that offer above-average yields.Leading research: The managers, supported by Putnam's fixed-income research division, manage risk by analyzing individual securities and overall market conditions.

Management team

Daily pricing as of 10/20/17

with optional enhanced death benefits
Unit Value $10.626001 $10.331879
Unit Value Change -0.000042 -0.000084

Lipper ranking ‡ as of 09/30/17

Category: Money Market Funds

  Percentile ranking Rank/Funds in category
10 yrs. 43% 25/58
1 yr. 78% 51/65
3 yrs. 77% 49/63
5 yrs. 72% 45/62

Capital gains, if any, are taxable for federal, and in most cases, state purposes. For some investors, investment income may be subject to the federal alternative minimum tax. Income from federally exempt funds may be subject to state and local taxes. Withdrawals prior to age 59 1/2 may be subject to a 10% IRS penalty.

Credit qualities are shown as a percentage of portfolio value. A bond rated P-1 for Moody's, A-1 for Standard & Poor's, or F1 for Fitch or, if unrated, deemed to be of comparable quality by Putnam, is considered a Tier 1 security under SEC rules. Ratings vary over time. The fund itself has not been rated by an independent rating agency.

‡ 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 09/30/17

Fiscal Year End December
Asset Class Putnam Allstate Advisor
Subaccount Status Open to new investors
Number of issuers 5
Turnover (fiscal year end) --
Net Assets $103M
Inception Date 02/01/88

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 -0.22% -0.80% -1.11% -1.20% -1.22% -0.84% 1.70%
Standardized -8.95% -9.49% -9.77% -5.95% -5.13% -4.44% -1.30%
With optional enhanced death benefit
Unit Value -0.26% -0.91% -1.26% -1.35% -1.36% -0.99% 1.54%
Standardized -8.98% -9.59% -9.91% -6.10% -5.29% -4.62% -1.55%
Actual performance
Unit Value -0.22% -0.80% -1.11% -1.20% -1.22% -0.84% 0.33%
Standardized -8.95% -9.49% -9.77% -5.95% -5.13% -4.44% -3.53%
With optional enhanced death benefit
Unit Value -0.26% -0.91% -1.26% -1.35% -1.36% -0.99% 0.18%
Standardized -8.98% -9.59% -9.91% -6.10% -5.29% -4.62% -3.76%

Annual Performance at NAV

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
3.49% 1.29% -1.04% -1.21% -1.24% -1.24% -1.24% -1.24% -1.24% -1.24%
With optional enhanced death benefit
3.34% 1.13% -1.20% -1.36% -1.39% -1.39% -1.39% -1.39% -1.39% -1.39%

Restated performance

Monthly as of 09/30/17

Unit Value -0.07%
Standardized -8.80%

YTD as of 10/20/17

Unit Value -0.85%
Standardized -9.53%

With optional enhanced death benefit

Monthly as of 09/30/17

Unit Value -0.08%
Standardized -8.81%

YTD as of 10/20/17

Unit Value -0.97%
Standardized -9.64%

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.

Capital gains, if any, are taxable for federal, and in most cases, state purposes. For some investors, investment income may be subject to the federal alternative minimum tax. Income from federally exempt funds may be subject to state and local taxes. Withdrawals prior to age 59 1/2 may be subject to a 10% IRS penalty.

Credit qualities are shown as a percentage of portfolio value. A bond rated P-1 for Moody's, A-1 for Standard & Poor's, or F1 for Fitch or, if unrated, deemed to be of comparable quality by Putnam, is considered a Tier 1 security under SEC rules. Ratings vary over time. The fund itself has not been rated by an independent rating agency.

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 09/30/17

Avg. Eff. Maturity --
Avg. Price --
Avg. Eff. Duration --
Avg. Coupon --
Avg. Yield to Maturity --

Holdings

Top issuers as of 09/30/17

United States of America 6.15%
Federal Home Loan Banks 4.09%
Federal Farm Credit Bank 2.53%
Federal National Mortgage Association 1.75%
Federal Home Loan Mortgage Corp 0.97%
Top issuers, total: 15.49%

Prior top issuers

Top issuers as of 09/30/17
1: United States of America 6.15%
2: Federal Home Loan Banks 4.09%
3: Federal Farm Credit Bank 2.53%
4: Federal National Mortgage Association 1.75%
5: Federal Home Loan Mortgage Corp 0.97%
Issuers represent 15.49% of portfolio
Top issuers as of 08/31/17
1: United States of America 6.10%
2: Federal Home Loan Banks 4.50%
3: Federal Home Loan Mortgage Corp 3.61%
4: Federal Farm Credit Bank 3.48%
5: Federal National Mortgage Association 2.86%
Issuers represent 20.55% of portfolio
Top issuers as of 07/31/17
1: United States of America 6.08%
2: Federal Home Loan Mortgage Corp 3.60%
3: Federal Home Loan Banks 3.52%
4: Federal Farm Credit Bank 3.46%
5: Federal National Mortgage Association 2.85%
Issuers represent 19.51% of portfolio
Top issuers as of 06/30/17
1: United States of America 6.00%
2: Federal Home Loan Mortgage Corp 4.50%
3: Federal Home Loan Banks 4.43%
4: Federal National Mortgage Association 4.43%
5: Federal Farm Credit Bank 3.42%
Issuers represent 22.78% of portfolio

Portfolio Composition as of 09/30/17

Repurchase agreements 84.68%
U.S. Government agency debt 9.35%
U.S. Treasury debt 6.15%
Cash and net other assets -0.18%

Portfolio allocations will vary over time. The unclassified sector (where applicable) includes exchange traded funds and other securities not able to be classified by sector.

Capital gains, if any, are taxable for federal, and in most cases, state purposes. For some investors, investment income may be subject to the federal alternative minimum tax. Income from federally exempt funds may be subject to state and local taxes. Withdrawals prior to age 59 1/2 may be subject to a 10% IRS penalty.

Credit qualities are shown as a percentage of portfolio value. A bond rated P-1 for Moody's, A-1 for Standard & Poor's, or F1 for Fitch or, if unrated, deemed to be of comparable quality by Putnam, is considered a Tier 1 security under SEC rules. Ratings vary over time. The fund itself has not been rated by an independent rating agency.

For more information, visit the SEC website, which will display Putnam VT Government Money Market Fund's most recent 12 months of filings on Form N-MFP (publically available beginning 1/31/11). Prior to April 30, 2016, the fund was known as VT Money Market Fund.

Full holdings


Expenses

Sales Charges/Fees

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

Capital gains, if any, are taxable for federal, and in most cases, state purposes. For some investors, investment income may be subject to the federal alternative minimum tax. Income from federally exempt funds may be subject to state and local taxes. Withdrawals prior to age 59 1/2 may be subject to a 10% IRS penalty.

Credit qualities are shown as a percentage of portfolio value. A bond rated P-1 for Moody's, A-1 for Standard & Poor's, or F1 for Fitch or, if unrated, deemed to be of comparable quality by Putnam, is considered a Tier 1 security under SEC rules. Ratings vary over time. The fund itself has not been rated by an independent rating agency.

‡ 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%

Asset Liquidity

A multi-faceted view of the portfolio

Below you can find continuously updated views of the portfolio's daily and weekly liquid asset levels, its net asset value (NAV), and asset flows into and out of the portfolio. Together, these graphs provide insights on the portfolio's resilience during periods of heightened risk in the money market, and are the focus of government policies designed to maintain market stability.

Daily and weekly liquid assets as of

This graph displays the percentage of the fund's total assets invested in daily and weekly liquid assets as of the end of each business day during the preceding six months. The fund is required to invest at least 10% of its total assets in daily liquid assets and at least 30% of its total assets in weekly liquid assets. Daily liquid assets include cash, direct obligations of the U.S. government, securities that will mature or are subject to a demand feature that is exercisable and payable within one business day, and receivables scheduled to be paid within one business day. Weekly liquid assets include daily liquid assets, government agency discount notes with remaining maturities of 60 days or less, securities that will mature or are subject to a demand feature that is exercisable and payable within five business days, and receivables scheduled to be paid within five business days.

Fluctuating net asset value as of

This graph displays the fund's daily net asset value (NAV) per share during the preceding six months as if it were calculated using the market value of the fund's portfolio as of the end of each business day during that period.

The market-value or "shadow" net asset value per share shown below for a given day may differ from the official NAV used for transactions in fund shares. The official NAV is shown on the "Highlights" tab. The shadow net asset value per share shown below does not reflect the application of the amortized cost method of valuing fund portfolio holdings, which normally allows the fund to maintain an official NAV of $1.00 per share. When a shareholder buys or redeems fund shares, the official NAV would be used as the net asset value per share.

Daily net asset flows as of

This graph displays the dollar amount of net shareholder inflows or outflows of the fund as of the end of each business day during the preceding six months.

Consider these risks before investing: You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency . The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.