Putnam Allstate Advisor Preferred

Putnam International Equity Subaccount

The subaccount seeks capital appreciation.

Fund description

Formerly Putnam International Growth Subaccount. The name change does not reflect a shift in subaccount objective or strategy.The subaccount invests in large and midsize international stocks, targeting companies with established earnings growth that are priced below their fundamental worth. The fund has no bias toward growth or value. It offers access to a broad range of investment opportunities in many markets of the world.

Sales story

Pursuing the growth potential of overseas marketsEstablished companies: The fund invests in established large and midsize companies mainly in developed markets to benefit from opportunities unfolding outside the United States.A flexible strategy: Pursuing Putnam's blend strategy, the fund can own growth- or value-style stocks to participate when either style leads international markets.Building competitive portfolios: The portfolio manager uses fundamental research as the cornerstone of the investment process. This research is supported by quantitative tools and macroeconomic analysis.

Management team

Daily pricing as of 10/20/17

with optional enhanced death benefits
Unit Value $11.788892 $11.478676
Unit Value Change -0.055927 -0.054502

Lipper ranking ‡ as of 09/30/17

Category: International Multi-Cap Core

  Percentile ranking Rank/Funds in category
10 yrs. 58% 24/41
1 yr. 40% 32/81
3 yrs. 42% 33/78
5 yrs. 17% 11/65

International investing involves certain risks, such as currency fluctuations, economic instability, and political developments. 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.

‡ 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 09/30/17

Fiscal Year End December
Asset Class Putnam Allstate Advisor Preferred
Subaccount Status Open to new investors
Number of issues 85
Turnover (fiscal year end) 66%
Net Assets $272M
Inception Date 01/02/97

Performance

Performance as of 09/30/17

Annualized Performance Last Quarter Year
to Date
1 yr. 3 yrs. 5 yrs. 10 yrs. Life of
subaccount
Restated performance
Unit Value 6.51% 21.08% 17.25% 3.06% 7.08% -1.05% 4.26%
Standardized 4.51% 19.08% 15.25% 3.06% 7.08% -1.05% 4.26%
With optional enhanced death benefit
Unit Value 6.47% 20.94% 17.08% 2.90% 6.91% -1.20% 4.10%
Standardized 4.47% 18.94% 15.08% 2.90% 6.91% -1.20% 4.10%
Actual performance
Unit Value 6.51% 21.08% 17.25% 3.06% 7.08% -1.05% 1.39%
Standardized 4.51% 19.08% 15.25% 3.06% 7.08% -1.05% 1.39%
With optional enhanced death benefit
Unit Value 6.47% 20.94% 17.08% 2.90% 6.91% -1.20% 2.54%
Standardized 4.47% 18.94% 15.08% 2.90% 6.91% -1.20% 2.54%

Annual Performance at NAV

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
6.57% -44.88% 22.58% 8.21% -18.30% 19.90% 25.96% -8.32% -1.51% -4.06%
With optional enhanced death benefit
6.41% -44.96% 22.39% 8.05% -18.43% 19.72% 25.77% -8.46% -1.66% -4.20%

Restated performance

Monthly as of 09/30/17

Unit Value 3.44%
Standardized 1.44%

YTD as of 10/20/17

Unit Value 22.03%
Standardized 20.03%

With optional enhanced death benefit

Monthly as of 09/30/17

Unit Value 3.43%
Standardized 1.43%

YTD as of 10/20/17

Unit Value 21.88%
Standardized 19.88%

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.

International investing involves certain risks, such as currency fluctuations, economic instability, and political developments. 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.

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 09/30/17

Alpha (%) 0.03
Beta 0.94
R Squared 0.94
Standard Deviation (3 yrs.) 11.72

Holdings

Top 10 holdings as of 09/30/17

Ing Groep Nv 2.32%
Bayer Ag 2.31%
Siemens Ag 2.22%
Prudential 2.12%
Unilever Nv 2.09%
Total 2.00%
Orix Corp 1.87%
Rio Tinto 1.74%
Sanofi 1.70%
Sony Corp 1.67%
Top 10 holdings, total: 20.04%

Equity Holdings as of 06/30/17

BAYER AG-REG 2.31%
ING GROEP NV-CVA 2.29%
SIEMENS AG 2.29%
PRUDENTIAL PLC 2.14%
ROYAL DUTCH SHELL PLC-A SHS 2.01%
UNILEVER NV-CVA 1.92%
ORIX CORP 1.89%
SONY CORP 1.81%
CHALLENGER LTD 1.77%
SANOFI 1.73%
SUMITOMO MITSUI FINANCIAL GR 1.73%
SHIRE PLC 1.72%
RIO TINTO PLC 1.67%
HOYA CORP 1.65%
SOCIETE GENERALE SA 1.55%
DANSKE BANK A/S 1.53%
HENKEL AG & CO KGAA VORZUG 1.51%
NSK LTD 1.51%
AIRBUS SE 1.49%
VALEO SA 1.49%
KONINKLIJKE AHOLD DELHAIZE N 1.46%
ASTRAZENECA PLC 1.45%
KOMATSU LTD 1.44%
NINTENDO CO LTD 1.38%
NOKIA OYJ 1.38%
BASF SE 1.35%
LIXIL GROUP CORP 1.31%
SOFTBANK GROUP CORP 1.27%
EVONIK INDUSTRIES AG 1.25%
SK HYNIX INC 1.24%
COMPASS GROUP PLC 1.23%
WH GROUP LTD 1.23%
ASSOCIATED BRITISH FOODS PLC 1.22%
TDK CORP 1.21%
ADIDAS AG 1.19%
CRH PLC 1.19%
RWE AG 1.19%
COM HEM HOLDING AB 1.17%
ENI SPA 1.15%
VEOLIA ENVIRONNEMENT 1.15%
ALIBABA GROUP HOLDING-SP ADR 1.14%
NATIXIS 1.13%
HEINEKEN NV 1.11%
BERKELEY GROUP HOLDINGS/THE 1.09%
TENCENT HOLDINGS LTD 1.09%
CHUGAI PHARMACEUTICAL CO LTD 1.08%
ALTICE NV - A 1.07%
SECURITAS AB-B SHS 1.06%
RHEINMETALL AG 1.05%
MAGNA INTERNATIONAL INC 1.04%
BANCO MACRO SA-ADR 1.02%
BARCLAYS PLC 1.01%
KERRY GROUP PLC-A 1.01%
GRIFOLS SA-ADR 0.99%
IMPERIAL BRANDS PLC 0.99%
ORKLA ASA 0.98%
TELECOM ITALIA-RSP 0.98%
PARTNERS GROUP HOLDING AG 0.97%
ADMIRAL GROUP PLC 0.96%
KKR & CO LP 0.96%
AKZO NOBEL 0.94%
DIXONS CARPHONE PLC 0.93%
ISUZU MOTORS LTD 0.93%
RPC GROUP PLC 0.92%
WOLSELEY PLC 0.91%
ROHM CO LTD 0.89%
JOHNSON CONTROLS INTERNATION 0.88%
CENOVUS ENERGY INC 0.87%
KION GROUP AG 0.87%
KYUDENKO CORP 0.87%
VIRGIN MONEY HOLDINGS UK 0.85%
EURAZEO SA 0.84%
TAIWAN SEMICONDUCTOR MANUFAC 0.84%
ALPHABET INC-CL C 0.83%
AMAZON.COM INC 0.82%
BANK OF IRELAND 0.81%
JAPAN AIRLINES CO LTD 0.79%
NORSK HYDRO ASA 0.77%
DELIVERY HERO AG 0.54%
MATAHARI DEPARTMENT STORE TB 0.53%
GLOBAL FASHION GRP P/P 0.03%
GLOBAL FASHION GRP 0.02%
FABFURNISH GMBH P/P 0.00%
NEW BIGFOOT OTHER AS P/P 0.00%
NEW MIDDLE EAST OTHE P/P 0.00%
SFR GROUP SA 0.00%

Full Portfolio Holdings as of 06/30/17

BAYER AG-REG 2.31%
ING GROEP NV-CVA 2.29%
SIEMENS AG 2.29%
PRUDENTIAL PLC 2.14%
ROYAL DUTCH SHELL PLC-A SHS 2.01%
UNILEVER NV-CVA 1.92%
ORIX CORP 1.89%
SONY CORP 1.81%
CHALLENGER LTD 1.77%
SANOFI 1.73%
SUMITOMO MITSUI FINANCIAL GR 1.73%
SHIRE PLC 1.72%
RIO TINTO PLC 1.67%
HOYA CORP 1.65%
SOCIETE GENERALE SA 1.55%
DANSKE BANK A/S 1.53%
HENKEL AG & CO KGAA VORZUG 1.51%
NSK LTD 1.51%
AIRBUS SE 1.49%
VALEO SA 1.49%
KONINKLIJKE AHOLD DELHAIZE N 1.46%
ASTRAZENECA PLC 1.45%
KOMATSU LTD 1.44%
NINTENDO CO LTD 1.38%
NOKIA OYJ 1.38%
BASF SE 1.35%
LIXIL GROUP CORP 1.31%
SOFTBANK GROUP CORP 1.27%
EVONIK INDUSTRIES AG 1.25%
SK HYNIX INC 1.24%
COMPASS GROUP PLC 1.23%
WH GROUP LTD 1.23%
ASSOCIATED BRITISH FOODS PLC 1.22%
TDK CORP 1.21%
ADIDAS AG 1.19%
CRH PLC 1.19%
RWE AG 1.19%
COM HEM HOLDING AB 1.17%
ENI SPA 1.15%
VEOLIA ENVIRONNEMENT 1.15%
ALIBABA GROUP HOLDING-SP ADR 1.14%
NATIXIS 1.13%
HEINEKEN NV 1.11%
BERKELEY GROUP HOLDINGS/THE 1.09%
TENCENT HOLDINGS LTD 1.09%
CHUGAI PHARMACEUTICAL CO LTD 1.08%
ALTICE NV - A 1.07%
SECURITAS AB-B SHS 1.06%
RHEINMETALL AG 1.05%
MAGNA INTERNATIONAL INC 1.04%
BANCO MACRO SA-ADR 1.02%
BARCLAYS PLC 1.01%
KERRY GROUP PLC-A 1.01%
GRIFOLS SA-ADR 0.99%
IMPERIAL BRANDS PLC 0.99%
ORKLA ASA 0.98%
TELECOM ITALIA-RSP 0.98%
PARTNERS GROUP HOLDING AG 0.97%
ADMIRAL GROUP PLC 0.96%
KKR & CO LP 0.96%
AKZO NOBEL 0.94%
DIXONS CARPHONE PLC 0.93%
ISUZU MOTORS LTD 0.93%
RPC GROUP PLC 0.92%
WOLSELEY PLC 0.91%
ROHM CO LTD 0.89%
JOHNSON CONTROLS INTERNATION 0.88%
CENOVUS ENERGY INC 0.87%
KION GROUP AG 0.87%
KYUDENKO CORP 0.87%
VIRGIN MONEY HOLDINGS UK 0.85%
EURAZEO SA 0.84%
TAIWAN SEMICONDUCTOR MANUFAC 0.84%
ALPHABET INC-CL C 0.83%
AMAZON.COM INC 0.82%
BANK OF IRELAND 0.81%
JAPAN AIRLINES CO LTD 0.79%
NORSK HYDRO ASA 0.77%
DELIVERY HERO AG 0.54%
MATAHARI DEPARTMENT STORE TB 0.53%
THE EURO EUR CALL ACCOUNT 0.50%
JAPANESE YEN CALL ACCOUNT 0.06%
GLOBAL FASHION GRP P/P 0.03%
JPY/USD 08/16/2017 GSFX 0.03%
CHF/USD 09/20/2017 BCAP-FX 0.02%
CHF/USD 09/20/2017 SSBT 0.02%
GLOBAL FASHION GRP 0.02%
AUD/USD 07/19/2017 CITI 0.01%
CHF/USD 09/20/2017 CSI-FX 0.01%
CHF/USD 09/20/2017 JPMCB 0.01%
CHF/USD 09/20/2017 UBS 0.01%
GBP/USD 09/20/2017 JPMCB 0.01%
GBP/USD 09/20/2017 SSBT 0.01%
JPY/USD 08/16/2017 JPMCB 0.01%
SGD/USD 08/16/2017 JPMCB 0.01%
AUD/USD 07/19/2017 BANKAM 0.00%
AUD/USD 07/19/2017 SSBT 0.00%
AUD/USD 07/19/2017 WPAC 0.00%
AUSTRALIAN DOLLAR ACCOUNT 0.00%
CAD/USD 07/19/2017 CSI-FX 0.00%
CAD/USD 07/19/2017 JPMCB 0.00%
CNH/USD 08/16/2017 GSFX 0.00%
DKK/USD 09/20/2017 CITI 0.00%
EUR/USD 09/20/2017 CITI 0.00%
EUR/USD 09/20/2017 GSFX 0.00%
FABFURNISH GMBH P/P 0.00%
HKD/USD 08/16/2017 BCAP-FX 0.00%
HONG KONG DOLLAR CALL ACCOUNT 0.00%
ILS/USD 07/19/2017 SSBT 0.00%
JPY/USD 08/16/2017 CITI 0.00%
JPY/USD 08/16/2017 SSBT 0.00%
KOREAN WON CALL ACCOUNT 0.00%
KRW/USD 08/16/2017 JPMCB 0.00%
NEW BIGFOOT OTHER AS P/P 0.00%
NEW MIDDLE EAST OTHE P/P 0.00%
NEW ZEALAND DOLLAR CALL ACCOUNT 0.00%
NOK/USD 09/20/2017 CSI-FX 0.00%
NOK/USD 09/20/2017 JPMCB 0.00%
NZD/USD 07/19/2017 CITI 0.00%
POUND STERLING CALL ACCOUNT 0.00%
SEK/USD 09/20/2017 CSI-FX 0.00%
SEK/USD 09/20/2017 JPMCB 0.00%
SFR GROUP SA 0.00%
EUR/USD 09/20/2017 HSBCB -0.01%
GBP/USD 09/20/2017 BANKAM -0.01%
GBP/USD 09/20/2017 CITI -0.01%
GBP/USD 09/20/2017 GSFX -0.01%
GBP/USD 09/20/2017 RBSF -0.01%
EUR/USD 09/20/2017 JPMCB -0.02%
EUR/USD 09/20/2017 BANKAM -0.04%

Prior top 10 holdings

Top 10 holdings as of 09/30/17
1: Ing Groep Nv 2.32%
2: Bayer Ag 2.31%
3: Siemens Ag 2.22%
4: Prudential 2.12%
5: Unilever Nv 2.09%
6: Total 2.00%
7: Orix Corp 1.87%
8: Rio Tinto 1.74%
9: Sanofi 1.70%
10: Sony Corp 1.67%
Holdings represent 20.04% of portfolio
Top 10 holdings as of 08/31/17
1: Ing Groep Nv 2.30%
2: Bayer Ag 2.23%
3: Unilever Nv 2.16%
4: Prudential 2.14%
5: Siemens Ag 2.12%
6: Royal Dutch Shell 2.03%
7: Orix Corp 1.91%
8: Rio Tinto 1.86%
9: Sony Corp 1.83%
10: Hoya Corp 1.81%
Holdings represent 20.39% of portfolio
Top 10 holdings as of 07/31/17
1: Ing Groep Nv 2.39%
2: Prudential 2.19%
3: Bayer Ag 2.18%
4: Siemens Ag 2.17%
5: Royal Dutch Shell 2.05%
6: Unilever Nv 1.95%
7: Sony Corp 1.88%
8: Orix Corp 1.87%
9: Hoya Corp 1.85%
10: Rio Tinto 1.76%
Holdings represent 20.29% of portfolio
Top 10 holdings as of 06/30/17
1: Bayer Ag 2.31%
2: Ing Groep Nv 2.29%
3: Siemens Ag 2.29%
4: Prudential 2.14%
5: Royal Dutch Shell 2.01%
6: Unilever Nv 1.92%
7: Orix Corp 1.89%
8: Sony Corp 1.81%
9: Challenger Financial Service 1.77%
10: Sanofi 1.73%
Holdings represent 20.16% of portfolio

Portfolio Composition as of 09/30/17

Common stock 97.84%
Cash and net other assets 1.57%
Preferred stock 0.56%
Convertible preferred stock 0.03%

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.

International investing involves certain risks, such as currency fluctuations, economic instability, and political developments. 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 09/30/17

Financials 21.41%
Industrials 14.56%
Consumer discretionary 11.55%
Information technology 11.15%
Consumer staples 10.69%
Health care 10.63%
Materials 8.86%
Energy 4.44%
Telecommunication services 2.72%
 
Other
3.99%
Utilities 2.42%
Cash and net other assets 1.57%

Country Allocation as of 09/30/17

Japan 20.00%
United Kingdom 15.46%
Germany 13.78%
France 11.89%
Netherlands 8.76%
United States 3.39%
Ireland 3.18%
Canada 3.02%
Australia 2.50%
 
Other
18.02%
China 2.48%
Hong Kong 2.16%
Spain 1.75%
Italy 1.67%
Cash and net other assets 1.57%
Denmark 1.41%
South Korea 1.35%
Finland 1.27%
Sweden 1.14%
Argentina 1.12%
Norway 1.02%
Switzerland 1.01%
Luxembourg 0.07%

Expenses

Sales Charges/Fees

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

International investing involves certain risks, such as currency fluctuations, economic instability, and political developments. 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.

‡ 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 2.00%
2 1.00%
3+ 0.00%