Putnam Allstate Advisor Plus

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 10/16/19

with optional enhanced death benefits
Unit Value $23.963395 $23.257193
Unit Value Change -0.001059 -0.001123

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 09/30/19

Fiscal Year End December
Asset Class Putnam Allstate Advisor Plus
Subaccount Status Open to new investors
Number of issues 47
Turnover (fiscal year end) 54%
Net Assets $129M
Inception Date 05/01/98

Performance

Performance as of 09/30/19

Annualized Performance Last Quarter Year
to Date
1 yr. 3 yrs. 5 yrs. 10 yrs. Life of
subaccount
Restated performance
Unit Value -1.39% 9.61% -2.26% 4.51% 3.65% 9.36% 4.84%
Standardized -9.27% 1.61% -10.08% 2.01% 2.59% 9.36% 4.84%
With optional enhanced death benefit
Unit Value -1.42% 9.49% -2.41% 4.36% 3.49% 9.19% 4.68%
Standardized -9.31% 1.49% -10.22% 1.85% 2.42% 9.19% 4.68%
Actual performance
Unit Value -1.39% 9.61% -2.26% 4.51% 3.65% 9.36% 4.24%
Standardized -9.27% 1.61% -10.08% 2.01% 2.59% 9.36% 4.24%
With optional enhanced death benefit
Unit Value -1.42% 9.49% -2.41% 4.36% 3.49% 9.19% 4.08%
Standardized -9.31% 1.49% -10.22% 1.85% 2.42% 9.19% 4.08%

Annual Performance at NAV

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
23.99% 0.83% -2.76% 20.31% 39.40% 25.60% 6.06% -12.77% 13.46% -2.19%
With optional enhanced death benefit
23.80% 0.67% -2.90% 20.12% 39.19% 25.41% 5.90% -12.90% 13.29% -2.34%

Restated performance

Monthly as of 09/30/19

Unit Value -0.56%
Standardized -8.51%

YTD as of 10/16/19

Unit Value 10.92%
Standardized 2.92%

With optional enhanced death benefit

Monthly as of 09/30/19

Unit Value -0.57%
Standardized -8.52%

YTD as of 10/16/19

Unit Value 10.79%
Standardized 2.79%

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 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 09/30/19

Alpha (%) -2.03
Beta 1.04
R Squared 0.94
Standard Deviation (3 yrs.) 12.81

Holdings

Top 10 holdings as of 09/30/19

Merck 7.40%
UnitedHealth Group 5.97%
Johnson&Johnson 5.32%
Abbvie 5.27%
Novartis Ag 5.18%
Roche Holding Ag 5.05%
Danaher Corp 5.03%
Medicines The 4.75%
Astrazeneca 4.66%
Amgen 3.82%
Top 10 holdings, total: 52.45%

Full Portfolio Holdings as of 09/30/19

MERCK & CO. INC. SEDOL 2778844 7.40%
UNITEDHEALTH GROUP INC SEDOL 2917766 5.96%
JOHNSON & JOHNSON SEDOL 2475833 5.32%
ABBVIE INC SEDOL B92SR70 5.27%
NOVARTIS AG-REG SEDOL 7103065 5.18%
ROCHE HOLDING AG-GENUSSCHEIN SEDOL 7110388 5.05%
DANAHER CORP SEDOL 2250870 5.03%
MEDICINES COMPANY SEDOL 2616773 4.76%
ASTRAZENECA PLC SEDOL 0989529 4.66%
AMGEN INC SEDOL 2023607 3.82%
VERTEX PHARMACEUTICALS INC SEDOL 2931034 3.72%
PFIZER INC SEDOL 2684703 3.44%
ABBOTT LABORATORIES SEDOL 2002305 3.42%
BOSTON SCIENTIFIC CORP SEDOL 2113434 3.27%
ELI LILLY & CO SEDOL 2516152 2.91%
HUMANA INC SEDOL 2445063 2.10%
GLAXOSMITHKLINE PLC SEDOL 0925288 1.86%
THERMO FISHER SCIENTIFIC INC SEDOL 2886907 1.82%
INTUITIVE SURGICAL INC SEDOL 2871301 1.80%
NOVO NORDISK A/S-B SEDOL BHC8X90 1.52%
CSL LTD SEDOL 6185495 1.45%
SANOFI SEDOL 5671735 1.28%
DAIICHI SANKYO CO LTD SEDOL B0J7D91 1.25%
MEDTRONIC PLC SEDOL BTN1Y11 1.24%
EDWARDS LIFESCIENCES CORP SEDOL 2567116 1.16%
CIGNA CORP SEDOL BHJ0775 1.15%
ILLUMINA INC SEDOL 2613990 1.13%
ALLERGAN PLC SEDOL BY9D546 1.08%
TAKEDA PHARMACEUTICAL CO LTD SEDOL 6870445 1.04%
IDEXX LABORATORIES INC SEDOL 2459202 1.01%
MCKESSON CORP SEDOL 2378534 0.99%
ASCENDIS PHARMA A/S - ADR SEDOL BV9G6B8 0.92%
BRISTOL-MYERS SQUIBB CO SEDOL 2126335 0.86%
BECTON DICKINSON AND CO SEDOL 2087807 0.84%
BAXTER INTERNATIONAL INC SEDOL 2085102 0.83%
LONZA GROUP AG-REG SEDOL 7333378 0.79%
ORCHARD THERAPEUTICS PLC SEDOL BGT3960 0.69%
BIOGEN INC SEDOL 2455965 0.65%
IQVIA HOLDINGS INC SEDOL BDR73G1 0.50%
ANTHEM INC SEDOL BSPHGL4 0.26%
MOMENTA PHARMACEUTICALS INC SEDOL B018VB0 0.24%
UNIQURE NV SEDOL BJFSR88 0.23%
AGIOS PHARMACEUTICALS INC SEDOL BCBVTX1 0.23%
Y-MABS THERAPEUTICS INC SEDOL BG31GH0 0.21%
MIRATI THERAPEUTICS INC SEDOL BBPK0J0 0.20%
CORREVIO PHARMA CORP SEDOL BD0M8C4 0.20%
MDCO 20200117 P 35.00BCBP 0.07%
CHF/USD 12/18/2019 JPMCB 0.03%
ILS/USD 10/16/2019 SSBT 0.01%
AUD/USD 10/16/2019 HSBCB 0.00%
CHF/USD 12/18/2019 BCAP-FX 0.00%
DKK/USD 12/18/2019 CITI 0.00%
NEURALSTEM INC SERIES K COMMON STOCK PURCHASE WARRANT 0.00%
CAD/USD 10/16/2019 SSBT -0.00%
EUR/USD 12/18/2019 HSBCB -0.00%
GBP/USD 12/18/2019 CITI -0.00%
CAD/USD 10/16/2019 CITI -0.00%
EUR/USD 12/18/2019 SSBT -0.00%
JPY/USD 11/20/2019 CSI-FX -0.00%
JPY/USD 11/20/2019 GSFX -0.01%
GBP/USD 12/18/2019 BCAP-FX -0.02%
AUD/USD 10/16/2019 JPMCB -0.03%
MDCO 20200117 P 28.00BCBP -0.03%
EUR/USD 12/18/2019 BANKAM -0.04%

Prior top 10 holdings

Top 10 holdings as of 09/30/19
1: Merck 7.40%
2: UnitedHealth Group 5.97%
3: Johnson&Johnson 5.32%
4: Abbvie 5.27%
5: Novartis Ag 5.18%
6: Roche Holding Ag 5.05%
7: Danaher Corp 5.03%
8: Medicines The 4.75%
9: Astrazeneca 4.66%
10: Amgen 3.82%
Holdings represent 52.45% of portfolio
Top 10 holdings as of 08/31/19
1: Merck 7.44%
2: UnitedHealth Group 6.76%
3: Novartis Ag 6.07%
4: Johnson Johnson 5.17%
5: Danaher Corp 4.84%
6: Astrazeneca 4.55%
7: Abbvie 4.48%
8: Vertex Pharmaceuticals 3.87%
9: Roche Holding Ag 3.81%
10: Medicines The 3.60%
Holdings represent 50.59% of portfolio
Top 10 holdings as of 07/31/19
1: UnitedHealth Group 8.27%
2: Merck 7.28%
3: Novartis Ag 6.40%
4: Johnson&Johnson 4.89%
5: Danaher Corp 4.76%
6: Astrazeneca 4.37%
7: Vertex Pharmaceuticals 4.17%
8: Pfizer 3.86%
9: Roche Holding Ag 3.72%
10: Eli Lilly 3.43%
Holdings represent 51.15% of portfolio
Top 10 holdings as of 06/30/19
1: UnitedHealth Group 7.92%
2: Merck 7.67%
3: Novartis Ag 6.23%
4: Danaher Corp 5.83%
5: Johnson & Johnson 5.10%
6: Pfizer 4.20%
7: Astrazeneca 4.06%
8: Eli Lilly 3.86%
9: Roche Holding Ag 3.81%
10: Vertex Pharmaceuticals 3.58%
Holdings represent 52.26% of portfolio

Portfolio Composition as of 09/30/19

Common stock 98.71%
Cash and net other assets 1.29%

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 09/30/19

Pharmaceuticals 43.04%
Biotechnology 22.38%
Health Care Equipment & Supplies 18.59%
Health Care Providers & Services 10.46%
Life Sciences Tools & Services 4.24%
Cash and net other assets 1.29%

Country Allocation as of 09/30/19

United States 72.61%
Switzerland 11.02%
United Kingdom 7.21%
Denmark 2.43%
Japan 2.28%
Australia 1.45%
Cash and net other assets 1.29%
France 1.28%
Netherlands 0.23%
 
Other
0.20%
Canada 0.20%

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 8.00%
2 8.00%
3 8.00%
4 7.00%
5 6.00%
6 5.00%
7 4.00%
8 3.00%
9+ 0.00%