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 07/20/18

with optional enhanced death benefits
Unit Value $23.509941 $22.859678
Unit Value Change 0.031347 0.030386

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 06/30/18

Fiscal Year End December
Asset Class Putnam Allstate Advisor Plus
Subaccount Status Open to new investors
Number of issues 47
Turnover (fiscal year end) 60%
Net Assets $141M
Inception Date 05/01/98

Performance

Performance as of 06/30/18

Annualized Performance Last Quarter Year
to Date
1 yr. 3 yrs. 5 yrs. 10 yrs. Life of
subaccount
Restated performance
Unit Value 3.43% 2.79% 2.28% -1.29% 9.89% 9.16% 4.93%
Standardized -4.57% -5.21% -5.72% -4.00% 9.06% 9.16% 4.93%
With optional enhanced death benefit
Unit Value 3.39% 2.72% 2.13% -1.44% 9.73% 9.00% 4.77%
Standardized -4.61% -5.28% -5.87% -4.14% 8.89% 9.00% 4.77%
Actual performance
Unit Value 3.43% 2.79% 2.28% -1.29% 9.89% 9.16% 4.29%
Standardized -4.57% -5.21% -5.72% -4.00% 9.06% 9.16% 4.29%
With optional enhanced death benefit
Unit Value 3.39% 2.72% 2.13% -1.44% 9.73% 9.00% 4.14%
Standardized -4.61% -5.28% -5.87% -4.14% 8.89% 9.00% 4.14%

Annual Performance at NAV

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
-18.40% 23.99% 0.83% -2.76% 20.31% 39.40% 25.60% 6.06% -12.77% 13.46%
With optional enhanced death benefit
-18.53% 23.80% 0.67% -2.90% 20.12% 39.19% 25.41% 5.90% -12.90% 13.29%

Restated performance

Monthly as of 06/30/18

Unit Value 1.32%
Standardized -6.68%

YTD as of 07/20/18

Unit Value 6.44%
Standardized -1.56%

With optional enhanced death benefit

Monthly as of 06/30/18

Unit Value 1.31%
Standardized -6.69%

YTD as of 07/20/18

Unit Value 6.35%
Standardized -1.65%

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.

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 06/30/18

Alpha (%) -3.12
Beta 1.09
R Squared 0.95
Standard Deviation (3 yrs.) 13.56

Holdings

Top 10 holdings as of 06/30/18

UnitedHealth Group 7.10%
Becton Dickinson And 6.78%
Danaher Corp 6.05%
Vertex Pharmaceuticals 5.27%
Jazz Pharmaceuticals 5.18%
Bayer Ag 4.75%
Astrazeneca 4.64%
Novartis Ag 4.10%
Boston Scientific Corp 4.08%
Merck 3.92%
Top 10 holdings, total: 51.87%

Equity Holdings as of 03/31/18

UNITEDHEALTH GROUP INC 6.20%
BECTON DICKINSON AND CO 6.14%
DANAHER CORP 5.43%
JAZZ PHARMACEUTICALS PLC 5.26%
VERTEX PHARMACEUTICALS INC 5.06%
ASTRAZENECA PLC 4.61%
BAYER AG-REG 4.49%
NOVARTIS AG-REG 4.39%
BRISTOL-MYERS SQUIBB CO 3.53%
AMGEN INC 3.28%
BOSTON SCIENTIFIC CORP 3.22%
DENTSPLY SIRONA INC 3.01%
ROCHE HOLDING AG-GENUSSCHEIN 2.75%
JOHNSON & JOHNSON 2.70%
BIOGEN INC 2.20%
INTUITIVE SURGICAL INC 2.19%
MEDICINES COMPANY 2.12%
MERCK & CO. INC. 2.02%
GILEAD SCIENCES INC 1.96%
BAXTER INTERNATIONAL INC 1.68%
CHUGAI PHARMACEUTICAL CO LTD 1.65%
TAKEDA PHARMACEUTICAL CO LTD 1.63%
FRESENIUS SE & CO KGAA 1.55%
PFIZER INC 1.46%
ALEXION PHARMACEUTICALS INC 1.43%
CLOVIS ONCOLOGY INC 1.41%
ABBVIE INC 1.29%
GLAXOSMITHKLINE PLC 1.29%
CLINIGEN GROUP PLC 1.27%
NIPPON SHINYAKU CO LTD 1.15%
MIRATI THERAPEUTICS INC 1.06%
PENUMBRA INC 0.99%
SANOFI 0.91%
METTLER-TOLEDO INTERNATIONAL 0.82%
GRIFOLS SA-ADR 0.76%
AGILENT TECHNOLOGIES INC 0.72%
BIO-RAD LABORATORIES-A 0.64%
ATARA BIOTHERAPEUTICS INC 0.56%
HCA HEALTHCARE INC 0.56%
CHINA BIOLOGIC PRODUCTS HOLD 0.54%
GENMARK DIAGNOSTICS INC 0.51%
PACIRA PHARMACEUTICALS INC 0.49%
DIPLOMAT PHARMACY INC 0.47%
SIEMENS HEALTH 0.45%
ASPEN PHARMACARE HOLDINGS LT 0.37%
FEDERAL STREET ACQUISITION 0.27%
HTG MOLECULAR DIAGNOSTICS 0.25%
INCYTE CORP 0.24%
FENNEC PHARMACEUTICALS INC 0.22%
ZUR ROSE GROUP AG 0.15%
SINOPHARM GROUP CO-H 0.11%
NEURALSTEM INC SERIES K COMMON STOCK PURCHASE WARRANT 0.00%

Full Portfolio Holdings as of 03/31/18

UNITEDHEALTH GROUP INC 6.20%
BECTON DICKINSON AND CO 6.14%
DANAHER CORP 5.43%
JAZZ PHARMACEUTICALS PLC 5.26%
VERTEX PHARMACEUTICALS INC 5.06%
ASTRAZENECA PLC 4.61%
BAYER AG-REG 4.49%
NOVARTIS AG-REG 4.39%
BRISTOL-MYERS SQUIBB CO 3.53%
AMGEN INC 3.28%
BOSTON SCIENTIFIC CORP 3.22%
DENTSPLY SIRONA INC 3.01%
ROCHE HOLDING AG-GENUSSCHEIN 2.75%
JOHNSON & JOHNSON 2.70%
BIOGEN INC 2.20%
INTUITIVE SURGICAL INC 2.19%
MEDICINES COMPANY 2.12%
MERCK & CO. INC. 2.02%
GILEAD SCIENCES INC 1.96%
BAXTER INTERNATIONAL INC 1.68%
CHUGAI PHARMACEUTICAL CO LTD 1.65%
TAKEDA PHARMACEUTICAL CO LTD 1.63%
FRESENIUS SE & CO KGAA 1.55%
PFIZER INC 1.46%
ALEXION PHARMACEUTICALS INC 1.43%
CLOVIS ONCOLOGY INC 1.41%
ABBVIE INC 1.29%
GLAXOSMITHKLINE PLC 1.29%
CLINIGEN GROUP PLC 1.27%
NIPPON SHINYAKU CO LTD 1.15%
MIRATI THERAPEUTICS INC 1.06%
PENUMBRA INC 0.99%
SANOFI 0.91%
METTLER-TOLEDO INTERNATIONAL 0.82%
GRIFOLS SA-ADR 0.76%
AGILENT TECHNOLOGIES INC 0.72%
BIO-RAD LABORATORIES-A 0.64%
ATARA BIOTHERAPEUTICS INC 0.56%
HCA HEALTHCARE INC 0.56%
CHINA BIOLOGIC PRODUCTS HOLD 0.54%
GENMARK DIAGNOSTICS INC 0.51%
PACIRA PHARMACEUTICALS INC 0.49%
DIPLOMAT PHARMACY INC 0.47%
SIEMENS HEALTH 0.45%
ASPEN PHARMACARE HOLDINGS LT 0.37%
FEDERAL STREET ACQUISITION 0.27%
HTG MOLECULAR DIAGNOSTICS 0.25%
INCYTE CORP 0.24%
FENNEC PHARMACEUTICALS INC 0.22%
ZUR ROSE GROUP AG 0.15%
SINOPHARM GROUP CO-H 0.11%
CHF/USD 06/20/2018 JPMCB 0.01%
DKK/USD 06/20/2018 CITI 0.01%
EUR/USD 06/20/2018 BANKAM 0.01%
AUD/USD 04/18/2018 JPMCB 0.00%
INDIAN RUPEE CALL ACCOUNT 0.00%
JPY/USD 05/16/2018 CSI-FX 0.00%
NEURALSTEM INC SERIES K COMMON STOCK PURCHASE WARRANT 0.00%
POUND STERLING CALL ACCOUNT 0.00%

Prior top 10 holdings

Top 10 holdings as of 06/30/18
1: UnitedHealth Group 7.10%
2: Becton Dickinson And 6.78%
3: Danaher Corp 6.05%
4: Vertex Pharmaceuticals 5.27%
5: Jazz Pharmaceuticals 5.18%
6: Bayer Ag 4.75%
7: Astrazeneca 4.64%
8: Novartis Ag 4.10%
9: Boston Scientific Corp 4.08%
10: Merck 3.92%
Holdings represent 51.87% of portfolio
Top 10 holdings as of 05/31/18
1: UnitedHealth Group 7.01%
2: Becton Dickinson And 6.29%
3: Danaher Corp 6.10%
4: Jazz Pharmaceuticals 5.10%
5: Astrazeneca 4.90%
6: Vertex Pharmaceuticals 4.79%
7: Bayer Ag 4.73%
8: Novartis Ag 4.03%
9: Merck 3.86%
10: Boston Scientific Corp 3.80%
Holdings represent 50.61% of portfolio
Top 10 holdings as of 04/30/18
1: UnitedHealth Group 6.89%
2: BD Medical 6.61%
3: Danaher Corp 6.19%
4: Jazz Pharmaceuticals 4.98%
5: Bayer Ag 4.78%
6: Vertex Pharmaceuticals 4.78%
7: Astrazeneca 4.73%
8: Novartis Ag 4.20%
9: Merck 3.83%
10: Boston Scientific Corp 3.61%
Holdings represent 50.60% of portfolio
Top 10 holdings as of 03/31/18
1: UnitedHealth Group 6.20%
2: BD Medical 6.14%
3: Danaher Corp 5.43%
4: Jazz Pharmaceuticals 5.26%
5: Vertex Pharmaceuticals 5.06%
6: Astrazeneca 4.61%
7: Bayer Ag 4.49%
8: Novartis Ag 4.39%
9: Bristol-Myers Squibb 3.53%
10: Amgen 3.28%
Holdings represent 48.39% of portfolio

Portfolio Composition as of 06/30/18

Common stock 97.66%
Cash and net other assets 2.34%

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 06/30/18

Pharmaceuticals 38.87%
Health Care Equipment & Supplies 26.32%
Biotechnology 16.97%
Health Care Providers & Services 10.80%
Life Sciences Tools & Services 3.03%
Cash and net other assets 2.34%
Food & Staples Retailing 0.62%
Diversified Consumer Services 0.55%
Diversified Financial Services 0.27%
 
Other
0.23%
Health Care Technology 0.23%

Country Allocation as of 06/30/18

United States 71.19%
United Kingdom 7.20%
Switzerland 6.93%
Germany 6.84%
Japan 3.66%
Cash and net other assets 2.34%
Spain 0.77%
China 0.75%
South Africa 0.32%

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%