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 companies: Often overlooked by Wall Street analysts, the stocks of small companies can represent attractive opportunities to firms with strong research capabilities.A value strategy: The fund focuses on finding small companies whose stocks are priced below their long-term potential, and where there may be a catalyst for positive change.Rigorous research: The portfolio managers and a team of senior research analysts offer the collaboration of a boutique with the extensive resources of a large, global firm.

Management team

Daily pricing as of 06/19/19

with optional enhanced death benefits
Unit Value $39.397388 $38.210688
Unit Value Change 0.129689 0.125625

Lipper ranking ‡ as of 05/31/19

Category: Small-Cap Value Funds

  Percentile ranking Rank/Funds in category
10 yrs. 35% 13/37
1 yr. 54% 22/40
3 yrs. 52% 21/40
5 yrs. 61% 24/39

The fund invests all or a portion of its assets in small to midsize companies. Such investments increase the risk of greater price fluctuations. Withdrawals prior to age 59 1/2 may be subject to a 10% IRS penalty.Although value investing targets stocks believed to be priced too low, there is no guarantee they will appreciate.

‡ 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 05/31/19

Fiscal Year End December
Asset Class Putnam Allstate Advisor
Subaccount Status Open to new investors
Number of issues 126
Turnover (fiscal year end) 561%
Net Assets $118M
Inception Date 04/30/99

Performance

Performance as of 03/31/19

Annualized Performance Last Quarter Year
to Date
1 yr. 3 yrs. 5 yrs. 10 yrs. Life of
subaccount
Restated performance
Unit Value 13.34% 13.34% -6.25% 6.85% 2.59% 13.19% 7.09%
Standardized 3.67% 3.67% -14.55% 2.42% -1.10% 11.84% 5.33%
With optional enhanced death benefit
Unit Value 13.30% 13.30% -6.39% 6.69% 2.43% 13.02% 6.90%
Standardized 3.63% 3.63% -14.68% 2.26% -1.26% 11.66% 5.10%
Actual performance
Unit Value 13.34% 13.34% -6.25% 6.85% 2.59% 13.19% 7.09%
Standardized 3.67% 3.67% -14.55% 2.42% -1.10% 11.84% 5.33%
With optional enhanced death benefit
Unit Value 13.30% 13.30% -6.39% 6.69% 2.43% 13.02% 6.90%
Standardized 3.63% 3.63% -14.68% 2.26% -1.26% 11.66% 5.10%

Annual Performance at NAV

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
29.89% 24.41% -5.92% 16.02% 37.86% 2.14% -5.44% 25.90% 6.53% -20.93%
With optional enhanced death benefit
29.69% 24.22% -6.06% 15.84% 37.65% 1.99% -5.58% 25.71% 6.37% -21.05%

Restated performance

Monthly as of 05/31/19

Unit Value -3.39%
Standardized -11.89%

YTD as of 06/19/19

Unit Value 14.04%
Standardized 4.31%

With optional enhanced death benefit

Monthly as of 05/31/19

Unit Value -3.39%
Standardized -11.89%

YTD as of 06/19/19

Unit Value 13.96%
Standardized 4.24%

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.

The fund invests all or a portion of its assets in small to midsize companies. Such investments increase the risk of greater price fluctuations. Withdrawals prior to age 59 1/2 may be subject to a 10% IRS penalty.

Although value investing targets stocks believed to be priced too low, there is no guarantee they will appreciate.

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 05/31/19

Alpha (%) -2.31
Beta 1.01
R Squared 0.94
Standard Deviation (3 yrs.) 17.40

Holdings

Top 10 holdings as of 05/31/19

Cedar Fair Lp 1.55%
Premier 1.52%
Vermilion Energy 1.46%
William Lyon Homes 1.41%
Scorpio Tankers 1.40%
Mesa Air Group 1.32%
Caci International 1.24%
Sp Plus Corp 1.24%
Allete 1.22%
Hancock Whitney Corp 1.22%
Top 10 holdings, total: 13.58%

Full Portfolio Holdings as of 03/31/19

VERMILION ENERGY INC 1.84%
ENCANA CORP 1.52%
CEDAR FAIR LP 1.50%
TRONOX HOLDINGS PLC-CLASS A 1.39%
PREMIER INC-CLASS A 1.35%
MADISON SQUARE GARDEN CO- A 1.31%
SP PLUS CORP 1.29%
SYNNEX CORP 1.23%
AMERICAN EQUITY INVT LIFE HL 1.22%
HANCOCK WHITNEY CORP 1.22%
SCORPIO TANKERS INC 1.22%
IBERIABANK CORP 1.19%
APOGEE ENTERPRISES INC 1.16%
CHEMICAL FINANCIAL CORP 1.16%
BIG LOTS INC 1.15%
DAVE & BUSTER'S ENTERTAINMEN 1.15%
FEDERAL SIGNAL CORP 1.14%
WESCO INTERNATIONAL INC 1.13%
DONNELLEY FINANCIAL SOLUTION 1.12%
ELECTRONICS FOR IMAGING 1.09%
HERMAN MILLER INC 1.09%
PERFICIENT INC 1.09%
PLANTRONICS INC 1.08%
STERLING BANCORP/DE 1.07%
CACI INTERNATIONAL INC -CL A 1.05%
WILLIAM LYON HOMES-CL A 1.05%
WILLSCOT CORP 1.05%
ALLETE INC 1.02%
J2 GLOBAL INC 1.00%
JABIL INC 1.00%
MESA AIR GROUP INC 1.00%
QTS REALTY TRUST INC-CL A 1.00%
FIRST HORIZON NATIONAL CORP 0.99%
SYNOVUS FINANCIAL CORP 0.99%
BLOOMIN' BRANDS INC 0.97%
GRANITE POINT MORTGAGE TRUST 0.97%
MARINEMAX INC 0.96%
PORTLAND GENERAL ELECTRIC CO 0.96%
PERSPECTA INC 0.93%
LUMENTUM HOLDINGS INC 0.90%
HERITAGE INSURANCE HOLDINGS 0.89%
CHEESECAKE FACTORY INC/THE 0.87%
UNIVEST FINANCIAL CORP 0.87%
WESTERN ALLIANCE BANCORP 0.87%
COOPER TIRE & RUBBER 0.86%
II-VI INC 0.86%
IMAX CORP 0.85%
LADDER CAPITAL CORP-REIT 0.85%
MAGELLAN HEALTH INC 0.85%
WINTRUST FINANCIAL CORP 0.84%
SAIA INC 0.83%
ANDEAVOR LOGISTICS LP 0.82%
GAMING AND LEISURE PROPERTIE 0.81%
MYR GROUP INC/DELAWARE 0.81%
PROPETRO HOLDING CORP 0.81%
VERSO CORP - A 0.81%
ZAYO GROUP HOLDINGS INC 0.81%
FIRST MERCHANTS CORP 0.80%
PHOTRONICS INC 0.80%
JETBLUE AIRWAYS CORP 0.79%
PAPA JOHN S INTL 0.78%
REXNORD CORP 0.78%
DMC GLOBAL INC 0.77%
QUAD GRAPHICS INC 0.76%
CLARUS CORP 0.75%
CLEAN HARBORS INC 0.75%
RANGE RESOURCES CORP 0.75%
CARROLS RESTAURANT GROUP INC 0.73%
EL PASO ELECTRIC CO 0.73%
KNOWLES CORP 0.73%
ARES CAPITAL CORP 0.72%
DINE BRANDS GLOBAL INC 0.72%
INDEPENDENT BANK GROUP INC 0.70%
COMMSCOPE HOLDING CO INC 0.69%
SHENANDOAH TELECOMMUNICATION 0.69%
COLUMBIA PROPERTY TRUST INC 0.68%
EAGLE MATERIALS INC 0.68%
OLIN CORP 0.67%
AMERIS BANCORP 0.66%
MATTHEWS INTL CORP-CLASS A 0.65%
MAGNOLIA OIL & GAS CORP 0.64%
LIONS GATE ENTERTAINMENT-A 0.61%
PENNANTPARK INVESTMENT CORP 0.61%
SPORTSMAN'S WAREHOUSE HOLDIN 0.61%
BAIN CAPITAL SPECIALTY FINAN 0.60%
CONNECTONE BANCORP INC 0.59%
TRIPLEPOINT VENTURE GROWTH B 0.59%
VECTRUS INC 0.59%
CARS.COM INC 0.58%
COHU INC 0.58%
INVESTORS BANCORP INC 0.56%
CRAFT BREW ALLIANCE INC 0.54%
TRIBUNE PUBLISHING CO 0.53%
BROOKDALE SENIOR LIVING INC 0.51%
TPG SPECIALTY LENDING INC 0.51%
ALLEGHENY TECHNOLOGIES INC 0.50%
QUANEX BUILDING PRODUCTS 0.49%
UNION BANKSHARES CORP 0.49%
BRUNSWICK CORP 0.48%
OMNOVA SOLUTIONS INC 0.48%
COLUMBUS MCKINNON CORP/NY 0.47%
ALAMO GROUP INC 0.45%
TIVO CORP 0.45%
MASTERCRAFT BOAT HOLDINGS IN 0.44%
SELECT ENERGY SERVICES INC-A 0.44%
ACADIA HEALTHCARE CO INC 0.42%
OCEANFIRST FINANCIAL CORP 0.41%
MANITEX INTERNATIONAL INC 0.40%
RLJ LODGING TRUST 0.39%
AMERICAN EAGLE OUTFITTERS 0.38%
NEWMARK GROUP INC-CLASS A 0.38%
SELECT MEDICAL HOLDINGS CORP 0.37%
CECO ENVIRONMENTAL CORP 0.36%
FIRST DEFIANCE FINL CORP 0.36%
BERRY GLOBAL GROUP INC 0.35%
STERLING CONSTRUCTION CO 0.33%
ADVANSIX INC 0.32%
NVENT ELECTRIC PLC 0.32%
CONSTRUCTION PARTNERS INC-A 0.31%
CAMDEN NATIONAL CORP 0.30%
WILLDAN GROUP INC 0.30%
FRANKLIN FINANCIAL NETWORK 0.28%
POWELL INDUSTRIES INC 0.28%
BEL FUSE INC-CL B 0.23%
ORION ENGINEERED CARBONS SA 0.23%
SCHNEIDER NATIONAL INC-CL B 0.23%
ATS AUTOMATION TOOLING SYS 0.22%
COASTAL FINANCIAL CORP/WA 0.19%
SEVEN GENERATIONS ENERGY - A 0.19%
VOXX INTERNATIONAL CORP 0.18%
FGL HOLDINGS 0.15%
TESSCO TECHNOLOGIES INC 0.08%
CITI TRENDS INC 0.06%
CHARAH SOLUTIONS INC 0.03%
INFORMATION SERVICES GROUP 0.01%
BANCTEC INC-144A CONTINGENT VALUE RIGHTS 0.00%
FERROGLOBE REPRESENTATION & 0.00%
CANADIAN DOLLAR ACCOUNT -0.16%

Prior top 10 holdings

Top 10 holdings as of 05/31/19
1: Cedar Fair Lp 1.55%
2: Premier 1.52%
3: Vermilion Energy 1.46%
4: William Lyon Homes 1.41%
5: Scorpio Tankers 1.40%
6: Mesa Air Group 1.32%
7: Caci International 1.24%
8: Sp Plus Corp 1.24%
9: Allete 1.22%
10: Hancock Whitney Corp 1.22%
Holdings represent 13.58% of portfolio
Top 10 holdings as of 04/30/19
1: Vermilion Energy 1.60%
2: Cedar Fair Lp 1.48%
3: Scorpio Tankers 1.48%
4: Tronox Holdings 1.36%
5: Synnex Corp 1.33%
6: Iberiabank Corp 1.27%
7: Hancock Whitney Corp 1.26%
8: Sp Plus Corp 1.25%
9: Premier 1.24%
10: Perficient 1.23%
Holdings represent 13.50% of portfolio
Top 10 holdings as of 03/31/19
1: Vermilion Energy 1.94%
2: Encana Corp 1.52%
3: Cedar Fair Lp 1.50%
4: Tronox Holdings 1.39%
5: Premier 1.35%
6: Madison Square Garden The 1.31%
7: Sp Plus Corp 1.29%
8: Synnex Corp 1.23%
9: Scorpio Tankers 1.22%
10: Hancock Whitney Corp 1.22%
Holdings represent 13.97% of portfolio
Top 10 holdings as of 02/28/19
1: Vermilion Energy 2.02%
2: Cedar Fair Lp 1.46%
3: Encana Corp 1.46%
4: American Equity Investment Life Holding 1.36%
5: Iberiabank Corp 1.24%
6: Sp Plus Corp 1.24%
7: Chemical Financial Corp 1.23%
8: Dave Buster'S Entertainment 1.23%
9: Madison Square Garden The 1.23%
10: Hancock Whitney Corp 1.21%
Holdings represent 13.68% of portfolio

Portfolio Composition as of 05/31/19

Common stock 99.05%
Cash and net other assets 0.95%

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.

The fund invests all or a portion of its assets in small to midsize companies. Such investments increase the risk of greater price fluctuations. Withdrawals prior to age 59 1/2 may be subject to a 10% IRS penalty.Although value investing targets stocks believed to be priced too low, there is no guarantee they will appreciate.

Top Industry Sectors as of 05/31/19

Financials 26.26%
Industrials 16.64%
Consumer discretionary 12.68%
Information technology 11.51%
Energy 7.76%
Materials 5.72%
Real estate 5.64%
Communication services 5.32%
Health care 3.83%
 
Other
4.64%
Utilities 3.16%
Cash and net other assets 0.95%
Consumer staples 0.53%

Expenses

Sales Charges/Fees

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

The fund invests all or a portion of its assets in small to midsize companies. Such investments increase the risk of greater price fluctuations. Withdrawals prior to age 59 1/2 may be subject to a 10% IRS penalty.Although value investing targets stocks believed to be priced too low, there is no guarantee they will appreciate.

‡ 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%