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 08/16/18

with optional enhanced death benefits
Unit Value $9.796379 $9.526808
Unit Value Change 0.027599 0.026801

Lipper ranking ‡ as of 07/31/18

Category: International Multi-Cap Growth

  Percentile ranking Rank/Funds in category
10 yrs. 34% 20/59
1 yr. 15% 11/73
3 yrs. 42% 30/71
5 yrs. 50% 35/70

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 07/31/18

Fiscal Year End December
Asset Class Putnam Allstate Advisor Preferred
Subaccount Status Open to new investors
Number of issues 87
Turnover (fiscal year end) 105%
Net Assets $41M
Inception Date 01/02/97

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 -0.92% 0.03% 12.73% 4.47% 5.60% 2.20% 3.42%
Standardized -2.90% -1.97% 10.73% 4.47% 5.60% 2.20% 3.42%
With optional enhanced death benefit
Unit Value -0.96% -0.04% 12.57% 4.32% 5.44% 2.04% 3.27%
Standardized -2.94% -2.04% 10.57% 4.32% 5.44% 2.04% 3.27%
Actual performance
Unit Value -0.92% 0.03% 12.73% 4.47% 5.60% 2.20% 1.11%
Standardized -2.90% -1.97% 10.73% 4.47% 5.60% 2.20% 1.11%
With optional enhanced death benefit
Unit Value -0.96% -0.04% 12.57% 4.32% 5.44% 2.04% 2.58%
Standardized -2.94% -2.04% 10.57% 4.32% 5.44% 2.04% 2.58%

Annual Performance at NAV

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
-43.43% 36.08% 10.35% -19.25% 19.01% 20.35% -7.70% -0.55% -8.25% 32.82%
With optional enhanced death benefit
-43.52% 35.87% 10.19% -19.38% 18.82% 20.17% -7.84% -0.70% -8.39% 32.62%

Restated performance

Monthly as of 07/31/18

Unit Value 1.05%
Standardized -0.95%

YTD as of 08/16/18

Unit Value -3.90%
Standardized -5.82%

With optional enhanced death benefit

Monthly as of 07/31/18

Unit Value 1.03%
Standardized -0.97%

YTD as of 08/16/18

Unit Value -3.99%
Standardized -5.91%

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 07/31/18

Alpha (%) 0.44
Beta 0.95
R Squared 0.88
Standard Deviation (3 yrs.) 11.79

Holdings

Top 10 holdings as of 07/31/18

Unilever Nv 3.20%
Burford Capital 2.42%
Hoya Corp 2.14%
Aia Group 2.09%
Adidas AG 2.08%
Dalata Hotel Group 2.06%
Bayer Ag 2.00%
Challenger Financial Service 1.99%
Tencent Holdings 1.85%
Bae Systems 1.78%
Top 10 holdings, total: 21.61%

Equity Holdings as of 06/30/18

UNILEVER NV-CVA 3.11%
BAYER AG-REG 2.18%
DALATA HOTEL GROUP PLC 2.12%
AIA GROUP LTD 2.09%
ADIDAS AG 2.06%
TENCENT HOLDINGS LTD 2.04%
BURFORD CAPITAL LTD 1.98%
HOYA CORP 1.87%
PERNOD RICARD SA 1.81%
BAE SYSTEMS PLC 1.77%
ALIBABA GROUP HOLDING-SP ADR 1.75%
CHALLENGER LTD 1.75%
RIO TINTO PLC 1.75%
VISA INC-CLASS A SHARES 1.70%
SIEMENS AG 1.62%
AIRBUS SE 1.58%
KYUDENKO CORP 1.56%
SINO-AMERICAN SILICON PRODUC 1.52%
KOMATSU LTD 1.51%
COMPASS GROUP PLC 1.50%
PRUDENTIAL PLC 1.50%
SONY CORP 1.50%
OCI NV 1.45%
TALEND SA - ADR 1.41%
PALTAC CORPORATION 1.37%
SCREEN HOLDINGS CO LTD 1.37%
ORPEA 1.35%
HEINEKEN NV 1.34%
CAIRN ENERGY PLC 1.33%
UNIVERSAL ENTERTAINMENT CORP 1.33%
WALSIN TECHNOLOGY CORP 1.32%
HDFC BANK LIMITED 1.27%
ASHTEAD GROUP PLC 1.26%
JAZZ PHARMACEUTICALS PLC 1.19%
MERCK & CO. INC. 1.16%
MORPHOSYS AG 1.16%
ILUKA RESOURCES LTD 1.11%
KERRY GROUP PLC-A 1.11%
EVONIK INDUSTRIES AG 1.10%
SHISEIDO CO LTD 1.10%
STMICROELECTRONICS NV 1.10%
DELIVERY HERO AG 1.09%
KION GROUP AG 1.07%
NOMAD FOODS LTD 1.05%
DEUTSCHE BOERSE AG 1.02%
CLINIGEN GROUP PLC 1.00%
DBS GROUP HOLDINGS LTD 1.00%
OUTSOURCING INC 1.00%
RAYTHEON COMPANY 1.00%
CAIXABANK S.A 0.99%
SOCIETE GENERALE SA 0.99%
KKR & CO LP 0.98%
KH NEOCHEM CO LTD 0.94%
TOSHIBA CORP 0.94%
SHANGHAI FOSUN PHARMACEUTI-H 0.93%
ORIX CORP 0.92%
SMC CORP 0.91%
DART GROUP PLC 0.90%
DXC TECHNOLOGY CO 0.90%
ENCANA CORP 0.89%
ALCOA CORP 0.88%
ASSA ABLOY AB-B 0.87%
BRILLIANCE CHINA AUTOMOTIVE 0.84%
GRUMA S.A.B.-B 0.83%
CHENIERE ENERGY INC 0.81%
CHINA EVERBRIGHT GREENTECH L 0.81%
ASSOCIATED BRITISH FOODS PLC 0.78%
HANA FINANCIAL GROUP 0.77%
OPEN HOUSE CO LTD 0.75%
SARAS SPA 0.75%
AIR CANADA 0.72%
CHINA WATER AFFAIRS GROUP 0.70%
SLM SOLUTIONS GROUP AG 0.68%
RHEINMETALL AG 0.67%
VALEO SA 0.67%
GENTERA SAB DE CV 0.66%
EDELWEISS FINANCIAL SERVICES 0.64%
DAIHO CORP 0.60%
NINTENDO CO LTD 0.48%
BOLSAS Y MERCADOS ARGENTINOS 0.43%
COBALT 27 CAPITAL CORP 0.39%
QUILTER PLC 0.30%
GRUPO FINANCIERO BANORTE-O 0.17%
GLOBAL FASHION GRP P/P 0.04%
HC BRILLANT SERVICES GMBH P/P 0.00%
NEW BIGFOOT OTHER ASSETS GMBH P/P 0.00%
NEW MIDDLE EAST OTHER ASSETS GMBH P/P 0.00%

Full Portfolio Holdings as of 06/30/18

UNILEVER NV-CVA 3.11%
BAYER AG-REG 2.18%
DALATA HOTEL GROUP PLC 2.12%
AIA GROUP LTD 2.09%
ADIDAS AG 2.06%
TENCENT HOLDINGS LTD 2.04%
BURFORD CAPITAL LTD 1.98%
HOYA CORP 1.87%
PERNOD RICARD SA 1.81%
BAE SYSTEMS PLC 1.77%
ALIBABA GROUP HOLDING-SP ADR 1.75%
CHALLENGER LTD 1.75%
RIO TINTO PLC 1.75%
VISA INC-CLASS A SHARES 1.70%
SIEMENS AG 1.62%
AIRBUS SE 1.58%
KYUDENKO CORP 1.56%
SINO-AMERICAN SILICON PRODUC 1.52%
KOMATSU LTD 1.51%
COMPASS GROUP PLC 1.50%
PRUDENTIAL PLC 1.50%
SONY CORP 1.50%
OCI NV 1.45%
TALEND SA - ADR 1.41%
PALTAC CORPORATION 1.37%
SCREEN HOLDINGS CO LTD 1.37%
ORPEA 1.35%
HEINEKEN NV 1.34%
CAIRN ENERGY PLC 1.33%
UNIVERSAL ENTERTAINMENT CORP 1.33%
WALSIN TECHNOLOGY CORP 1.32%
MEXICAN PESO CALL ACCOUNT 1.29%
HDFC BANK LIMITED 1.27%
ASHTEAD GROUP PLC 1.26%
JAZZ PHARMACEUTICALS PLC 1.19%
MERCK & CO. INC. 1.16%
MORPHOSYS AG 1.16%
ILUKA RESOURCES LTD 1.11%
KERRY GROUP PLC-A 1.11%
EVONIK INDUSTRIES AG 1.10%
SHISEIDO CO LTD 1.10%
STMICROELECTRONICS NV 1.10%
DELIVERY HERO AG 1.09%
KION GROUP AG 1.07%
NOMAD FOODS LTD 1.05%
DEUTSCHE BOERSE AG 1.02%
CLINIGEN GROUP PLC 1.00%
DBS GROUP HOLDINGS LTD 1.00%
OUTSOURCING INC 1.00%
RAYTHEON COMPANY 1.00%
CAIXABANK S.A 0.99%
SOCIETE GENERALE SA 0.99%
KKR & CO LP 0.98%
KH NEOCHEM CO LTD 0.94%
TOSHIBA CORP 0.94%
SHANGHAI FOSUN PHARMACEUTI-H 0.93%
ORIX CORP 0.92%
SMC CORP 0.91%
DART GROUP PLC 0.90%
DXC TECHNOLOGY CO 0.90%
ENCANA CORP 0.89%
ALCOA CORP 0.88%
ASSA ABLOY AB-B 0.87%
BRILLIANCE CHINA AUTOMOTIVE 0.84%
GRUMA S.A.B.-B 0.83%
CHENIERE ENERGY INC 0.81%
CHINA EVERBRIGHT GREENTECH L 0.81%
ASSOCIATED BRITISH FOODS PLC 0.78%
HANA FINANCIAL GROUP 0.77%
OPEN HOUSE CO LTD 0.75%
SARAS SPA 0.75%
AIR CANADA 0.72%
CHINA WATER AFFAIRS GROUP 0.70%
SLM SOLUTIONS GROUP AG 0.68%
RHEINMETALL AG 0.67%
VALEO SA 0.67%
GENTERA SAB DE CV 0.66%
EDELWEISS FINANCIAL SERVICES 0.64%
DAIHO CORP 0.60%
NINTENDO CO LTD 0.48%
BOLSAS Y MERCADOS ARGENTINOS 0.43%
COBALT 27 CAPITAL CORP 0.39%
QUILTER PLC 0.30%
GRUPO FINANCIERO BANORTE-O 0.17%
EUR/USD 09/19/2018 CITI 0.08%
GLOBAL FASHION GRP P/P 0.04%
CHF/USD 09/19/2018 BCAP-FX 0.02%
CHF/USD 09/19/2018 JPMCB 0.02%
GBP/USD 09/19/2018 JPMCB 0.02%
AUD/USD 07/18/2018 CITI 0.01%
AUD/USD 07/18/2018 GSFX 0.01%
DKK/USD 09/19/2018 CITI 0.01%
JPY/USD 08/16/2018 CITI 0.01%
NOK/USD 09/19/2018 JPMCB 0.01%
SEK/USD 09/19/2018 JPMCB 0.01%
SEK/USD 09/19/2018 SSBT 0.01%
CAD/USD 07/18/2018 CITI 0.00%
GBP/USD 09/19/2018 CITI 0.00%
HC BRILLANT SERVICES GMBH P/P 0.00%
HKD/USD 08/16/2018 BANKAM 0.00%
HKD/USD 08/16/2018 BCAP-FX 0.00%
ILS/USD 07/18/2018 SSBT 0.00%
INDIAN RUPEE CALL ACCOUNT 0.00%
JPY/USD 08/16/2018 JPMCB 0.00%
JPY/USD 08/16/2018 SSBT 0.00%
KRW/USD 08/16/2018 JPMCB 0.00%
MXN/USD 07/18/2018 CITI 0.00%
NEW BIGFOOT OTHER ASSETS GMBH P/P 0.00%
NEW MIDDLE EAST OTHER ASSETS GMBH P/P 0.00%
NZD/USD 07/18/2018 JPMCB 0.00%
SEK/USD 09/19/2018 BCAP-FX 0.00%
SGD/USD 08/16/2018 JPMCB 0.00%
CAD/USD 07/18/2018 SSBT -0.01%
EUR/USD 09/19/2018 BANKAM -0.01%
GBP/USD 09/19/2018 BCAP-FX -0.01%
GBP/USD 09/19/2018 SSBT -0.01%
GBP/USD 09/19/2018 BANKAM -0.02%
GBP/USD 09/19/2018 GSFX -0.02%
CANADIAN DOLLAR ACCOUNT -0.03%
EUR/USD 09/19/2018 HSBCB -0.03%
SINGAPORE DOLLAR CALL ACCOUNT -0.03%
CNH/USD 08/16/2018 GSFX -0.04%
AUSTRALIAN DOLLAR ACCOUNT -0.07%
HONG KONG DOLLAR CALL ACCOUNT -0.11%
POUND STERLING CALL ACCOUNT -0.18%
BRAZILIAN REAL CALL ACCOUNT -0.25%
JAPANESE YEN CALL ACCOUNT -0.34%
THE EURO EUR CALL ACCOUNT -0.38%

Prior top 10 holdings

Top 10 holdings as of 07/31/18
1: Unilever Nv 3.20%
2: Burford Capital 2.42%
3: Hoya Corp 2.14%
4: Aia Group 2.09%
5: Adidas AG 2.08%
6: Dalata Hotel Group 2.06%
7: Bayer Ag 2.00%
8: Challenger Financial Service 1.99%
9: Tencent Holdings 1.85%
10: Bae Systems 1.78%
Holdings represent 21.61% of portfolio
Top 10 holdings as of 06/30/18
1: Unilever Nv 3.11%
2: Bayer Ag 2.18%
3: Aia Group 2.15%
4: Dalata Hotel Group 2.12%
5: Tencent Holdings 2.08%
6: Adidas AG 2.06%
7: Burford Capital 1.98%
8: Hoya Corp 1.91%
9: Pernod Ricard 1.81%
10: Challenger Financial Service 1.80%
Holdings represent 21.20% of portfolio
Top 10 holdings as of 05/31/18
1: Unilever Nv 3.04%
2: Aia Group 2.15%
3: Bayer Ag 2.13%
4: Adidas AG 2.10%
5: Burford Capital 2.08%
6: Tencent Holdings 2.01%
7: Dalata Hotel Group 1.99%
8: Heineken Nv 1.97%
9: Challenger Financial Service 1.91%
10: Hoya Corp 1.91%
Holdings represent 21.29% of portfolio
Top 10 holdings as of 04/30/18
1: Unilever Nv 3.14%
2: Adidas AG 2.23%
3: Bayer Ag 2.16%
4: Dalata Hotel Group 2.09%
5: Heineken Nv 2.01%
6: Aia Group 2.00%
7: Tencent Holdings 1.98%
8: Burford Capital 1.96%
9: Diageo 1.78%
10: Bae Systems 1.75%
Holdings represent 21.10% of portfolio

Portfolio Composition as of 07/31/18

Common stock 97.91%
Cash and net other assets 2.09%

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 07/31/18

Industrials 19.22%
Financials 18.28%
Information technology 15.76%
Consumer discretionary 11.21%
Consumer staples 10.91%
Health care 10.39%
Materials 5.88%
Energy 3.91%
Cash and net other assets 2.09%
 
Other
2.35%
Utilities 1.66%
Real estate 0.69%

Country Allocation as of 07/31/18

Japan 17.87%
United Kingdom 15.20%
Germany 12.64%
United States 12.22%
China 6.68%
France 6.40%
Netherlands 6.16%
Ireland 3.19%
Canada 2.79%
 
Other
16.85%
Australia 2.45%
Cash and net other assets 2.09%
Hong Kong 2.09%
Mexico 2.05%
India 1.75%
Taiwan 1.30%
Spain 1.06%
Singapore 1.01%
Italy 0.90%
Sweden 0.81%
South Korea 0.80%
Argentina 0.50%
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%