Putnam Allstate Advisor

George Putnam Balanced Fund Subaccount

The subaccount seeks to provide a balanced investment composed of a well diversified portfolio of stocks and bonds which produce both capital growth and current income.

Fund description

The subaccount seeks its dual objectives of capital growth and current income by investing in a combination of value stocks and fixed-income securities. The equity portion targets stocks of large companies that are currently undervalued and undergoing positive changes. The fixed-income portion includes government, corporate, and mortgage-backed securities. The subaccount typically has a 60%-70% allocation to stocks and a 30%-40% position in bonds.

Sales story

A prudent balance of stocks and bonds A balanced approach: The fund seeks conservative growth plus income through a mix of roughly 60% stocks and 40% bonds.Seeking reduced volatility: The fund's focus on undervalued stocks and primarily high-quality bonds is designed to reduce volatility for conservative and income-oriented investors.A rigorous process: The fund's experienced portfolio managers use rigorous fundamental investment research to find opportunities and manage risk.

Management team

Daily pricing as of 05/26/20

with optional enhanced death benefits
Unit Value $19.435153 $18.823284
Unit Value Change 0.094945 0.091648

Lipper ranking ‡ as of 04/30/20

Category: BALANCED FUNDS

  Percentile ranking Rank/Funds in category
10 yrs. 11% 12/119
1 yr. 7% 11/165
3 yrs. 6% 8/147
5 yrs. 10% 13/132

‡ 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 04/30/20

Fiscal Year End December
Asset Class Putnam Allstate Advisor
Subaccount Status Open to new investors
Number of issues 422
Turnover (fiscal year end) 128%
Net Assets $182M
Inception Date 05/01/98

Performance

Performance as of 03/31/20

Annualized Performance Last Quarter Year
to Date
1 yr. 3 yrs. 5 yrs. 10 yrs. Life of
subaccount
Restated performance
Unit Value -11.96% -11.96% -1.52% 3.90% 3.74% 6.39% 2.99%
Standardized -19.86% -19.86% -10.15% -0.75% 0.08% 3.98% -0.31%
With optional enhanced death benefit
Unit Value -11.99% -11.99% -1.67% 3.74% 3.58% 6.22% 2.83%
Standardized -19.89% -19.89% -10.29% -0.90% -0.09% 3.80% -0.54%
Actual performance
Unit Value -11.96% -11.96% -1.52% 3.90% 3.74% 6.39% 2.72%
Standardized -19.86% -19.86% -10.15% -0.75% 0.08% 3.98% -0.87%
With optional enhanced death benefit
Unit Value -11.99% -11.99% -1.67% 3.74% 3.58% 6.22% 2.57%
Standardized -19.89% -19.89% -10.29% -0.90% -0.09% 3.80% -1.10%

Annual Performance at NAV

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
9.44% 1.49% 11.12% 16.62% 9.29% -2.37% 6.66% 13.65% -4.36% 22.46%
With optional enhanced death benefit
9.27% 1.33% 10.96% 16.44% 9.13% -2.51% 6.50% 13.48% -4.50% 22.27%

Restated performance

Monthly as of 04/30/20

Unit Value 8.16%
Standardized -1.15%

YTD as of 05/26/20

Unit Value -2.41%
Standardized -10.98%

With optional enhanced death benefit

Monthly as of 04/30/20

Unit Value 8.15%
Standardized -1.16%

YTD as of 05/26/20

Unit Value -2.47%
Standardized -11.03%

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 04/30/20

Avg. Eff. Maturity 7.76
Avg. Eff. Duration 5.71
Avg. Coupon --
Avg. Yield to Maturity --
Alpha (%) 1.33
Beta 0.63
R Squared 0.98
Standard Deviation (3 yrs.) 10.51

Maturity Details

0 to 1 yr. 3.61%
1 to 5 yrs. 53.82%
5 to 10 yrs. 23.24%
10 to 15 yrs. 1.63%
Over 15 yrs. 17.70%

Quality Ratings

AAA 58.86%
AA 2.00%
A 12.50%
BBB 22.12%
BB 1.17%
CCC and Below 0.01%
Not Rated 3.34%

Holdings

Microsoft 3.76%
Amazon 2.97%
Us Treasury N/B 02.1250 12/31/2022 2.30%
Us Treasury N/B 02.7500 08/15/2042 2.29%
Alphabet 2.19%
Apple 2.13%
Us Treasury N/B 02.0000 02/15/2022 1.89%
Us Treasury N/B 01.6250 10/31/2023 1.58%
Activision Blizzard 1.56%
Us Treasury N/B 01.7500 06/30/2022 1.39%
Top 10 holdings, total: 22.06%


Top 10 holdings as of 04/30/20
1: Microsoft 3.76%
2: Amazon 2.97%
3: Us Treasury N/B 02.1250 12/31/2022 2.30%
4: Us Treasury N/B 02.7500 08/15/2042 2.29%
5: Alphabet 2.19%
6: Apple 2.13%
7: Us Treasury N/B 02.0000 02/15/2022 1.89%
8: Us Treasury N/B 01.6250 10/31/2023 1.58%
9: Activision Blizzard 1.56%
10: Us Treasury N/B 01.7500 06/30/2022 1.39%
Holdings represent 22.06% of portfolio
Top 10 holdings as of 03/31/20
1: Microsoft 3.67%
2: Amazon 2.59%
3: Us Treasury N/B 02.1250 12/31/2022 2.54%
4: Us Treasury N/B 02.7500 08/15/2042 2.51%
5: Alphabet 2.10%
6: Us Treasury N/B 02.0000 02/15/2022 2.10%
7: Apple 2.04%
8: Us Treasury N/B 01.6250 10/31/2023 1.76%
9: Us Treasury N/B 01.7500 06/30/2022 1.53%
10: Us Treasury N/B 01.8750 11/30/2021 1.50%
Holdings represent 22.34% of portfolio
Top 10 holdings as of 02/29/20
1: Microsoft 3.25%
2: Us Treasury N/B 02.1250 12/31/2022 2.27%
3: Us Treasury N/B 02.7500 08/15/2042 2.14%
4: Amazon 2.08%
5: Alphabet 2.01%
6: Us Treasury N/B 01.6250 10/31/2023 2.00%
7: Apple 1.93%
8: Us Treasury N/B 02.0000 02/15/2022 1.88%
9: Us Treasury N/B 03.0000 02/15/2047 1.44%
10: Us Treasury N/B 01.7500 06/30/2022 1.37%
Holdings represent 20.37% of portfolio
Top 10 holdings as of 01/31/20
1: Microsoft 3.27%
2: Us Treasury N/B 02.1250 12/31/2022 2.15%
3: Apple 2.09%
4: Alphabet 2.01%
5: Amazon 1.99%
6: Us Treasury N/B 02.7500 08/15/2042 1.95%
7: Us Treasury N/B 01.6250 10/31/2023 1.88%
8: Us Treasury N/B 02.0000 02/15/2022 1.80%
9: Us Treasury N/B 03.0000 02/15/2047 1.40%
10: Us Treasury N/B 01.7500 06/30/2022 1.30%
Holdings represent 19.84% of portfolio


Portfolio Composition as of 04/30/20

Common stock 61.30%
Treasury 13.93%
Corporate bonds and notes 13.80%
Agency pass-through 7.25%
Cash and net other assets 3.16%
Commercial MBS 0.44%
Municipal bonds 0.10%
Residential MBS (non-agency) 0.02%

Consider these risks before 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. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. Bond investments are subject to interest-rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments). Interest-rate risk is generally greater for longer-term bonds, and credit risk is generally greater for below-investment-grade bonds. Risks associated with derivatives include increased investment exposure (which may be considered leverage) and, in the case of over-the-counter instruments, the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations. 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 04/30/20

Information technology 22.15%
Health care 15.55%
Consumer discretionary 11.73%
Communication services 11.05%
Financials 10.00%
Industrials 8.95%
Consumer staples 7.78%
Utilities 3.97%
Cash and net other assets 3.16%
 
Other
5.66%
Materials 2.80%
Energy 2.04%
Real estate 0.82%

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%