Putnam Allstate Advisor Preferred

Putnam International Growth Subaccount

The subaccount seeks long-term capital appreciation.

Fund description

The subaccount invests in companies outside the United States experiencing rapid earnings, sales, and business unit growth, and with the potential for positive earnings surprises. The fund invests primarily in large and midsize companies with superior competitive positions within their industries.

Sales story

Harnessing the potential of international growth companiesInternational growth: The fund invests in international companies with above-average earnings growth primarily from developed international markets.Diverse companies: The portfolio includes large companies that dominate their industries and midsize companies that are emerging leaders with strong future potential.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 $9.868338 $9.60864
Unit Value Change -0.039752 -0.038746

Lipper ranking ‡ as of 09/30/17

Category: International Multi-Cap Growth

  Percentile ranking Rank/Funds in category
10 yrs. 46% 28/61
1 yr. 32% 27/85
3 yrs. 74% 62/83
5 yrs. 47% 37/79

International investing involves certain risks, such as currency fluctuations, economic instability, and political developments. Additional risks may be associated with emerging market securities, including illiquidity and volatility. The fund invests all or a portion of its assets in small to midsize companies. Such investments increase the risk of greater price fluctuations. 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 100
Turnover (fiscal year end) 117%
Net Assets $42M
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 8.28% 27.62% 18.20% 3.52% 6.53% 0.14% 3.35%
Standardized 6.28% 25.62% 16.20% 3.52% 6.53% 0.14% 3.35%
With optional enhanced death benefit
Unit Value 8.24% 27.47% 18.02% 3.36% 6.37% -0.02% 3.19%
Standardized 6.24% 25.47% 16.02% 3.36% 6.37% -0.02% 3.19%
Actual performance
Unit Value 8.28% 27.62% 18.20% 3.52% 6.53% 0.14% 0.93%
Standardized 6.28% 25.62% 16.20% 3.52% 6.53% 0.14% 0.93%
With optional enhanced death benefit
Unit Value 8.24% 27.47% 18.02% 3.36% 6.37% -0.02% 2.47%
Standardized 6.24% 25.47% 16.02% 3.36% 6.37% -0.02% 2.47%

Annual Performance at NAV

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
11.33% -43.43% 36.08% 10.35% -19.25% 19.01% 20.35% -7.70% -0.55% -8.25%
With optional enhanced death benefit
11.16% -43.52% 35.87% 10.19% -19.38% 18.82% 20.17% -7.84% -0.70% -8.39%

Restated performance

Monthly as of 09/30/17

Unit Value 2.71%
Standardized 0.71%

YTD as of 10/20/17

Unit Value 28.58%
Standardized 26.58%

With optional enhanced death benefit

Monthly as of 09/30/17

Unit Value 2.70%
Standardized 0.70%

YTD as of 10/20/17

Unit Value 28.42%
Standardized 26.42%

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. Additional risks may be associated with emerging market securities, including illiquidity and volatility. The fund invests all or a portion of its assets in small to midsize companies. Such investments increase the risk of greater price fluctuations. 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 (%) -0.88
Beta 0.94
R Squared 0.91
Standard Deviation (3 yrs.) 11.79

Holdings

Top 10 holdings as of 09/30/17

Bayer Ag 2.50%
Tencent Holdings 1.96%
Aia Group 1.92%
Sony Corp 1.83%
Airbus 1.82%
Challenger Financial Service 1.74%
Valeo 1.67%
Alibaba Group Holding 1.67%
Shire 1.65%
Compass Group 1.62%
Top 10 holdings, total: 18.38%

Equity Holdings as of 06/30/17

BAYER AG-REG 2.20%
AIA GROUP LTD 2.00%
CHALLENGER LTD 1.94%
BRITISH AMERICAN TOBACCO PLC 1.74%
COMPASS GROUP PLC 1.71%
SONY CORP 1.64%
TENCENT HOLDINGS LTD 1.64%
KUMAGAI GUMI CO LTD 1.60%
RELX NV 1.59%
SIEMENS AG 1.58%
ALIBABA GROUP HOLDING-SP ADR 1.55%
HDFC BANK LIMITED 1.43%
KERRY GROUP PLC-A 1.32%
ASSOCIATED BRITISH FOODS PLC 1.31%
NOKIA OYJ 1.31%
SOCIETE GENERALE SA 1.31%
BURFORD CAPITAL LTD 1.29%
SHIRE PLC 1.27%
AIRBUS SE 1.26%
SMS CO LTD 1.26%
CLINIGEN GROUP PLC 1.23%
DALATA HOTEL GROUP PLC 1.23%
ING GROEP NV-CVA 1.20%
NINTENDO CO LTD 1.20%
KYUDENKO CORP 1.18%
ADIDAS AG 1.17%
ORIX CORP 1.16%
SOFTBANK GROUP CORP 1.14%
TDK CORP 1.13%
UNICREDIT SPA 1.13%
THALES SA 1.12%
COMPUGROUP MEDICAL SE 1.11%
ROYAL DUTCH SHELL PLC-A SHS 1.10%
AMUNDI SA 1.09%
HEINEKEN NV 1.09%
ORKLA ASA 1.09%
VALEO SA 1.09%
JOHNSON CONTROLS INTERNATION 1.08%
HIBERNIA REIT PLC 1.05%
LAFARGEHOLCIM LTD-REG 1.05%
COX AND KINGS LTD 1.04%
KOMATSU LTD 1.04%
SK HYNIX INC 1.03%
TOYO TIRE & RUBBER CO LTD 1.03%
ALTICE NV - A 1.01%
SMC CORP 1.01%
KONINKLIJKE AHOLD DELHAIZE N 0.98%
UNILEVER NV-CVA 0.97%
SECURITAS AB-B SHS 0.94%
SARTORIUS AG-PFD PCT 0.000 0.90%
SCREEN HOLDINGS CO LTD 0.90%
ROHM CO LTD 0.86%
SAFARICOM LTD 0.85%
SBERBANK PJSC -SPONSORED ADR 0.84%
BANCO MACRO SA-ADR 0.81%
BEAUTY COMMUNITY PCL-FOREIGN 0.79%
CHINA WATER AFFAIRS GROUP 0.78%
ALBEMARLE CORP 0.76%
ARCELORMITTAL 0.76%
ENCANA CORP 0.76%
VEOLIA ENVIRONNEMENT 0.75%
X 5 RETAIL GROUP NV-REGS GDR 0.75%
RPC GROUP PLC 0.74%
SHANGHAI FOSUN PHARMACEUTI-H 0.73%
SHISEIDO CO LTD 0.73%
AIN HOLDINGS INC 0.72%
LINDAB INTERNATIONAL AB 0.72%
AIXTRON AG 0.71%
DXC TECHNOLOGY CO 0.71%
RHEINMETALL AG 0.71%
RIB SOFTWARE SE 0.71%
ILUKA RESOURCES LTD 0.70%
AKZO NOBEL 0.69%
DART GROUP PLC 0.68%
AENA SA 0.67%
ALCOA CORP 0.67%
CENOVUS ENERGY INC 0.67%
BASSO INDUSTRY CORP 0.65%
CREDICORP LTD 0.64%
NOMAD FOODS LTD 0.62%
ADMIRAL GROUP PLC 0.61%
RAYTHEON COMPANY 0.61%
GREENCORE GROUP PLC 0.58%
ZEE ENTERTAINMENT ENTERPRISE 0.58%
FACEBOOK INC-A 0.57%
KENNEDY-WILSON HOLDINGS INC 0.57%
AMAZON.COM INC 0.56%
ASML HOLDING NV 0.56%
COM HEM HOLDING AB 0.56%
JAZZ PHARMACEUTICALS PLC 0.56%
SODICK CO LTD 0.55%
NCSOFT CORP 0.54%
UBI SOFT ENTERTA 0.54%
DELIVERY HERO HOLDIN P/P 0.50%
ALPHABET INC-CL C 0.45%
HAMILTON LANE INC-CLASS A 0.43%
KKR & CO LP 0.40%
MTU AERO ENGINES AG 0.40%
INSTRUCTURE INC 0.35%
FOXTONS GROUP PLC 0.31%
DELIVERY HERO AG 0.22%
MATAHARI DEPARTMENT STORE TB 0.20%
GLOBAL FASHION GRP P/P 0.04%
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 2.20%
AIA GROUP LTD 2.00%
CHALLENGER LTD 1.94%
BRITISH AMERICAN TOBACCO PLC 1.74%
COMPASS GROUP PLC 1.71%
SONY CORP 1.64%
TENCENT HOLDINGS LTD 1.64%
KUMAGAI GUMI CO LTD 1.60%
RELX NV 1.59%
SIEMENS AG 1.58%
ALIBABA GROUP HOLDING-SP ADR 1.55%
HDFC BANK LIMITED 1.43%
KERRY GROUP PLC-A 1.32%
ASSOCIATED BRITISH FOODS PLC 1.31%
NOKIA OYJ 1.31%
SOCIETE GENERALE SA 1.31%
BURFORD CAPITAL LTD 1.29%
SHIRE PLC 1.27%
AIRBUS SE 1.26%
SMS CO LTD 1.26%
CLINIGEN GROUP PLC 1.23%
DALATA HOTEL GROUP PLC 1.23%
ING GROEP NV-CVA 1.20%
NINTENDO CO LTD 1.20%
KYUDENKO CORP 1.18%
ADIDAS AG 1.17%
ORIX CORP 1.16%
SOFTBANK GROUP CORP 1.14%
TDK CORP 1.13%
UNICREDIT SPA 1.13%
THALES SA 1.12%
COMPUGROUP MEDICAL SE 1.11%
ROYAL DUTCH SHELL PLC-A SHS 1.10%
AMUNDI SA 1.09%
HEINEKEN NV 1.09%
ORKLA ASA 1.09%
VALEO SA 1.09%
JOHNSON CONTROLS INTERNATION 1.08%
HIBERNIA REIT PLC 1.05%
LAFARGEHOLCIM LTD-REG 1.05%
COX AND KINGS LTD 1.04%
KOMATSU LTD 1.04%
SK HYNIX INC 1.03%
TOYO TIRE & RUBBER CO LTD 1.03%
ALTICE NV - A 1.01%
SMC CORP 1.01%
KONINKLIJKE AHOLD DELHAIZE N 0.98%
HANGZHOU HIKVISION DIGITAL-A 144A REGS WARRANT 12/18/2017 0.97%
UNILEVER NV-CVA 0.97%
SECURITAS AB-B SHS 0.94%
SARTORIUS AG-PFD PCT 0.000 0.90%
SCREEN HOLDINGS CO LTD 0.90%
ROHM CO LTD 0.86%
SAFARICOM LTD 0.85%
SBERBANK PJSC -SPONSORED ADR 0.84%
BANCO MACRO SA-ADR 0.81%
BEAUTY COMMUNITY PCL-FOREIGN 0.79%
CHINA WATER AFFAIRS GROUP 0.78%
ALBEMARLE CORP 0.76%
ARCELORMITTAL 0.76%
ENCANA CORP 0.76%
VEOLIA ENVIRONNEMENT 0.75%
X 5 RETAIL GROUP NV-REGS GDR 0.75%
RPC GROUP PLC 0.74%
SHANGHAI FOSUN PHARMACEUTI-H 0.73%
SHISEIDO CO LTD 0.73%
AIN HOLDINGS INC 0.72%
LINDAB INTERNATIONAL AB 0.72%
AIXTRON AG 0.71%
DXC TECHNOLOGY CO 0.71%
RHEINMETALL AG 0.71%
RIB SOFTWARE SE 0.71%
ILUKA RESOURCES LTD 0.70%
AKZO NOBEL 0.69%
DART GROUP PLC 0.68%
AENA SA 0.67%
ALCOA CORP 0.67%
CENOVUS ENERGY INC 0.67%
BASSO INDUSTRY CORP 0.65%
SHANGHAI INTL AIRPORT CO LTD 144A REGS WARRANT 05/07/2018 0.65%
CREDICORP LTD 0.64%
NOMAD FOODS LTD 0.62%
ADMIRAL GROUP PLC 0.61%
RAYTHEON COMPANY 0.61%
GREENCORE GROUP PLC 0.58%
ZEE ENTERTAINMENT ENTERPRISE 0.58%
FACEBOOK INC-A 0.57%
KENNEDY-WILSON HOLDINGS INC 0.57%
AMAZON.COM INC 0.56%
ASML HOLDING NV 0.56%
COM HEM HOLDING AB 0.56%
JAZZ PHARMACEUTICALS PLC 0.56%
SODICK CO LTD 0.55%
NCSOFT CORP 0.54%
UBI SOFT ENTERTA 0.54%
DELIVERY HERO HOLDIN P/P 0.50%
ALPHABET INC-CL C 0.45%
HAMILTON LANE INC-CLASS A 0.43%
KKR & CO LP 0.40%
MTU AERO ENGINES AG 0.40%
INDIAN RUPEE CALL ACCOUNT 0.37%
INSTRUCTURE INC 0.35%
FOXTONS GROUP PLC 0.31%
HONG KONG DOLLAR CALL ACCOUNT 0.25%
DELIVERY HERO AG 0.22%
MATAHARI DEPARTMENT STORE TB 0.20%
CANADIAN DOLLAR ACCOUNT 0.15%
POUND STERLING CALL ACCOUNT 0.11%
CHF/USD 09/20/2017 SSBT 0.04%
GLOBAL FASHION GRP P/P 0.04%
CHF/USD 09/20/2017 BCAP-FX 0.03%
JPY/USD 08/16/2017 CITI 0.03%
EUR/USD 09/20/2017 GSFX 0.02%
GBP/USD 09/20/2017 JPMCB 0.02%
DKK/USD 09/20/2017 CITI 0.01%
EUR/USD 09/20/2017 CITI 0.01%
SEK/USD 09/20/2017 JPMCB 0.01%
AUD/USD 07/19/2017 BANKAM 0.00%
AUD/USD 07/19/2017 CITI 0.00%
AUD/USD 07/19/2017 GSFX 0.00%
AUSTRALIAN DOLLAR ACCOUNT 0.00%
CAD/USD 07/19/2017 BANKAM 0.00%
CAD/USD 07/19/2017 CSI-FX 0.00%
CAD/USD 07/19/2017 SSBT 0.00%
CHF/USD 09/20/2017 UBS 0.00%
CNH/USD 08/16/2017 GSFX 0.00%
FABFURNISH GMBH P/P 0.00%
GBP/USD 09/20/2017 CITI 0.00%
GBP/USD 09/20/2017 SSBT 0.00%
HKD/USD 08/16/2017 BANKAM 0.00%
HKD/USD 08/16/2017 BCAP-FX 0.00%
ILS/USD 07/19/2017 SSBT 0.00%
JPY/USD 08/16/2017 GSFX 0.00%
JPY/USD 08/16/2017 JPMCB 0.00%
KRW/USD 08/16/2017 JPMCB 0.00%
MXN/USD 07/19/2017 CITI 0.00%
NEW BIGFOOT OTHER AS P/P 0.00%
NEW MIDDLE EAST OTHE P/P 0.00%
NOK/USD 09/20/2017 JPMCB 0.00%
NZD/USD 07/19/2017 JPMCB 0.00%
SEK/USD 09/20/2017 CSI-FX 0.00%
SFR GROUP SA 0.00%
SGD/USD 08/16/2017 JPMCB 0.00%
EUR/USD 09/20/2017 BCAP-FX -0.01%
GBP/USD 09/20/2017 BANKAM -0.01%
JPY/USD 08/16/2017 SSBT -0.01%
CHF/USD 09/20/2017 JPMCB -0.02%
EUR/USD 09/20/2017 JPMCB -0.02%
EUR/USD 09/20/2017 HSBCB -0.03%
KENYA SHILLING CALL ACCOUNT -0.04%
JAPANESE YEN CALL ACCOUNT -0.17%
THE EURO EUR CALL ACCOUNT -0.31%

Prior top 10 holdings

Top 10 holdings as of 09/30/17
1: Bayer Ag 2.50%
2: Tencent Holdings 1.96%
3: Aia Group 1.92%
4: Sony Corp 1.83%
5: Airbus 1.82%
6: Challenger Financial Service 1.74%
7: Valeo 1.67%
8: Alibaba Group Holding 1.67%
9: Shire 1.65%
10: Compass Group 1.62%
Holdings represent 18.38% of portfolio
Top 10 holdings as of 08/31/17
1: Bayer Ag 2.40%
2: Aia Group 2.04%
3: Tencent Holdings 1.98%
4: Sony Corp 1.85%
5: Challenger Financial Service 1.82%
6: Alibaba Group Holding 1.70%
7: Compass Group 1.68%
8: Clinigen Group 1.63%
9: Unilever Nv 1.59%
10: Heineken Nv 1.58%
Holdings represent 18.27% of portfolio
Top 10 holdings as of 07/31/17
1: Bayer Ag 2.24%
2: Aia Group 2.06%
3: Sony Corp 1.91%
4: Challenger Financial Service 1.85%
5: Tencent Holdings 1.75%
6: Shire 1.70%
7: Compass Group 1.65%
8: Kumagai Gumi 1.65%
9: Alibaba Group Holding 1.63%
10: Valeo 1.61%
Holdings represent 18.05% of portfolio
Top 10 holdings as of 06/30/17
1: Bayer Ag 2.20%
2: Aia Group 2.00%
3: Challenger Financial Service 1.94%
4: British American Tobacco 1.74%
5: Compass Group 1.71%
6: Sony Corp 1.64%
7: Tencent Holdings 1.64%
8: Kumagai Gumi 1.60%
9: Reed Elsevier N.V. 1.59%
10: Siemens Ag 1.58%
Holdings represent 17.64% of portfolio

Portfolio Composition as of 09/30/17

Common stock 98.36%
Cash and net other assets 1.64%

Portfolio characteristics 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. Additional risks may be associated with emerging market securities, including illiquidity and volatility. The fund invests all or a portion of its assets in small to midsize companies. Such investments increase the risk of greater price fluctuations. 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

Industrials 20.79%
Financials 16.97%
Information technology 16.66%
Consumer discretionary 13.21%
Consumer staples 9.82%
Health care 7.86%
Materials 6.29%
Energy 3.03%
Cash and net other assets 1.64%
 
Other
3.73%
Telecommunication services 1.49%
Utilities 1.42%
Real estate 0.82%

Country Allocation as of 09/30/17

Japan 18.18%
United Kingdom 15.76%
United States 7.88%
Germany 7.85%
France 7.58%
China 6.70%
Netherlands 5.76%
India 4.38%
Ireland 3.61%
 
Other
22.30%
Australia 2.68%
Sweden 2.47%
Russia 2.02%
South Korea 2.02%
Hong Kong 1.92%
Cash and net other assets 1.64%
Taiwan 1.43%
Finland 1.37%
Italy 1.22%
Canada 1.21%
Switzerland 1.03%
Argentina 0.98%
Brazil 0.89%
Turkey 0.74%
Hungary 0.64%
Luxembourg 0.04%

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. Additional risks may be associated with emerging market securities, including illiquidity and volatility. The fund invests all or a portion of its assets in small to midsize companies. Such investments increase the risk of greater price fluctuations. 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%