Putnam Allstate Advisor

Putnam Small Cap Value Subaccount

The subaccount seeks capital appreciation.

Fund description

The subaccount pursues its objective of long-term capital appreciation by investing in stocks of small companies that are undergoing positive changes. In accordance with its value strategy, it seeks holdings that have below-average price/earnings ratios and that are priced below their long-term business value. The subaccount's focus on low valuation helps to manage the risk associated with investing in small companies.

Sales story

Pursuing capital appreciation through undervalued small companiesSmall companiesOften overlooked by Wall Street analysts, the stocks of small companies can be attractive opportunities.Active value strategyThe strategy seeks undervalued companies with improving fundamentals or catalysts that may unlock potential.Rigorous researchThe portfolio manager collaborates with strategy and sector analysts, combining the benefits of a focused boutique with the extensive resources of a global firm.

Management team

Daily pricing as of 07/01/22

with optional enhanced death benefits
Unit Value $51.012968 $49.250632
Unit Value Change 0.537844 0.519064

Lipper ranking ‡ as of 05/31/22

Category: Small-Cap Value Funds

  Percentile ranking Rank/Funds in category
10 yrs. 19% 4/21
1 yr. 22% 5/22
3 yrs. 23% 5/21
5 yrs. 46% 10/21

‡ 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 05/31/22

Fiscal Year End December
Asset Class Putnam Allstate Advisor
Subaccount Status Open to new investors
Number of issues 103
Turnover (fiscal year end) 92%
Net Assets $130M
Inception Date 04/30/99

Performance

Performance as of 06/30/22

Annualized Performance Last Quarter Year
to Date
1 yr. 3 yrs. 5 yrs. 10 yrs. Life of
subaccount
Restated performance
Unit Value -16.19% -16.05% -13.60% 8.14% 3.91% 8.25% 7.24%
Standardized -23.80% -23.67% -21.38% 3.27% 0.02% 6.13% 5.73%
With optional enhanced death benefit
Unit Value -16.23% -16.11% -13.73% 7.98% 3.76% 8.08% 7.05%
Standardized -23.83% -23.73% -21.51% 3.10% -0.15% 5.95% 5.51%
Actual performance
Unit Value -16.19% -16.05% -13.60% 8.14% 3.91% 8.25% 7.24%
Standardized -23.80% -23.67% -21.38% 3.27% 0.02% 6.13% 5.73%
With optional enhanced death benefit
Unit Value -16.23% -16.11% -13.73% 7.98% 3.76% 8.08% 7.05%
Standardized -23.83% -23.73% -21.51% 3.10% -0.15% 5.95% 5.51%

Annual Performance at NAV

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
16.02% 37.86% 2.14% -5.44% 25.90% 6.53% -20.93% 22.69% 2.67% 38.16%
With optional enhanced death benefit
15.84% 37.65% 1.99% -5.58% 25.71% 6.37% -21.05% 22.51% 2.51% 37.95%

Restated performance

Monthly as of 06/30/22

Unit Value -11.23%
Standardized -19.19%

YTD as of 07/01/22

Unit Value -15.16%
Standardized -22.84%

With optional enhanced death benefit

Monthly as of 06/30/22

Unit Value -11.24%
Standardized -19.20%

YTD as of 07/01/22

Unit Value -15.22%
Standardized -22.89%

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 Capital Manager products are flexible-premium variable annuities held by Talcott Resolution Life, Inc., 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 Talcott Resolution 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 Talcott Resolution at 1-800-521-0538 or Allstate at 1-800-390-1277.

Risk Characteristics as of 05/31/22

Alpha (%) 2.53
Beta 1.12
R Squared 0.97
Standard Deviation (3 yrs.) 27.95

Holdings

Sm Energy 2.05%
Magnolia Oil Gas Corp 1.75%
Cnx Resources Corp 1.60%
Scorpio Tankers 1.53%
Universal Technical Institute 1.43%
Option Care Health 1.40%
Newpark Resources 1.35%
Icf International 1.30%
Lantheus Holdings 1.29%
Mrc Global 1.29%
Top 10 holdings, total: 15.01%


Top 10 holdings as of 05/31/22
1: Sm Energy 2.05%
2: Magnolia Oil Gas Corp 1.75%
3: Cnx Resources Corp 1.60%
4: Scorpio Tankers 1.53%
5: Universal Technical Institute 1.43%
6: Option Care Health 1.40%
7: Newpark Resources 1.35%
8: Icf International 1.30%
9: Lantheus Holdings 1.29%
10: Mrc Global 1.29%
Holdings represent 15.01% of portfolio
Top 10 holdings as of 04/30/22
1: Sm Energy 1.84%
2: Magnolia Oil Gas Corp 1.73%
3: Hackett Group The 1.55%
4: Universal Technical Institute 1.53%
5: Cnx Resources Corp 1.50%
6: Option Care Health 1.41%
7: Major Drilling 1.40%
8: Lantheus Holdings 1.39%
9: Mrc Global 1.36%
10: Brookdale Senior Living 1.33%
Holdings represent 15.04% of portfolio
Top 10 holdings as of 03/31/22
1: Sm Energy 1.87%
2: Magnolia Oil Gas Corp 1.62%
3: Hackett Group The 1.50%
4: Limelight Networks 1.48%
5: Major Drilling 1.45%
6: Cnx Resources Corp 1.40%
7: Brookdale Senior Living 1.40%
8: Mrc Global 1.35%
9: Universal Technical Institute 1.25%
10: Option Care Health 1.24%
Holdings represent 14.56% of portfolio
Top 10 holdings as of 02/28/22
1: Sm Energy 1.85%
2: Magnolia Oil Gas Corp 1.69%
3: Brookdale Senior Living 1.42%
4: Hackett Group The 1.40%
5: Lantheus Holdings 1.30%
6: Newpark Resources 1.29%
7: Universal Technical Institute 1.27%
8: Sterling Construction 1.22%
9: Cnx Resources Corp 1.20%
10: Walker Dunlop 1.19%
Holdings represent 13.83% of portfolio


Portfolio Composition as of 05/31/22

Common stock 98.97%
Cash and net other assets 1.03%

Consider these risks before investing: Investments in small and/or midsize companies increase the risk of greater price fluctuations. Value stocks may fail to rebound, and the market may not favor value-style investing. The value of investments in the fund’s portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general economic, political, or financial market conditions; investor sentiment and market perceptions; government actions; geopolitical events or changes; and factors related to a specific issuer, geography, industry, or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund’s portfolio holdings. These risks are generally greater for small and midsize companies. From time to time, the fund may invest a significant portion of its assets in companies in one or more related industries or sectors, which would make the fund more vulnerable to adverse developments affecting those industries or sectors. Our investment techniques, analyses, and judgments may not produce the outcome we intend. The investments we select for the fund may not perform as well as other securities that we do not select for the fund. We, or the fund’s other service providers, may experience disruptions or operating errors that could have a negative effect on the fund. You can lose money by investing in the fund. 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.

Top Industry Sectors as of 05/31/22

Financials 25.65%
Industrials 20.98%
Energy 10.12%
Consumer discretionary 8.82%
Information technology 8.44%
Health care 7.43%
Materials 6.65%
Real estate 6.44%
Utilities 1.99%
 
Other
3.48%
Consumer staples 1.68%
Cash and net other assets 1.03%
Communication services 0.77%

Expenses

Sales Charges/Fees

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

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%