Putnam Allstate Advisor Preferred

Putnam Investors Subaccount

The subaccount seeks long-term growth of capital and any increased income that results from this growth.

Fund description

The subaccount invests in stocks of large, well-established companies. Its portfolio may include stocks of companies whose products, services, and names are recognized and respected around the world. The subaccount is managed with no predetermined style bias; its portfolio may contain both growth and value stocks.

Sales story

Seeking great companies for investorsA "go-anywhere" approach: The fund is not rigidly limited to a single style. Its manager can invest in growth or value stocks, targeting those that can perform well in a variety of market conditions.Disciplined process: The fund's manager use exhaustive fundamental research to look for large U.S. companies whose stock prices do not reflect their long-range prospects.Leading research: The portfolio manager is supported by Putnam's Global Equity Research Group, whose analysts visit with hundreds of companies each year.

Management team

Daily pricing as of 12/14/17

with optional enhanced death benefits
Unit Value $13.052877 $12.706576
Unit Value Change -0.058843 -0.057335

Lipper ranking ‡ as of 10/31/17

Category: Large-Cap Core Funds

  Percentile ranking Rank/Funds in category
10 yrs. 35% 45/128
1 yr. 11% 20/186
3 yrs. 56% 100/179
5 yrs. 27% 44/165

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.The fund involves the risk that the stock prices of the companies in the portfolio will fall or will fail to rise. Many factors can adversely affect a stock's performance, including both general financial market conditions and factors related to a specific company or industry.

‡ 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 11/30/17

Fiscal Year End December
Asset Class Putnam Allstate Advisor Preferred
Subaccount Status Open to new investors
Number of issues 149
Turnover (fiscal year end) 50%
Net Assets $281M
Inception Date 05/01/98

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 5.69% 12.75% 19.88% 7.43% 12.21% 4.83% 2.91%
Standardized 3.69% 10.75% 17.88% 7.43% 12.21% 4.83% 2.91%
With optional enhanced death benefit
Unit Value 5.65% 12.62% 19.70% 7.27% 12.03% 4.67% 2.75%
Standardized 3.65% 10.62% 17.70% 7.27% 12.03% 4.67% 2.75%
Actual performance
Unit Value 5.69% 12.75% 19.88% 7.43% 12.21% 4.83% 1.65%
Standardized 3.69% 10.75% 17.88% 7.43% 12.21% 4.83% 1.65%
With optional enhanced death benefit
Unit Value 5.65% 12.62% 19.70% 7.27% 12.03% 4.67% 1.83%
Standardized 3.65% 10.62% 17.70% 7.27% 12.03% 4.67% 1.83%

Annual Performance at NAV

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
-6.74% -40.55% 28.67% 12.04% -1.60% 14.90% 32.90% 12.03% -3.79% 10.21%
With optional enhanced death benefit
-6.88% -40.64% 28.47% 11.87% -1.75% 14.72% 32.69% 11.86% -3.94% 10.04%

Restated performance

Monthly as of 11/30/17

Unit Value 2.89%
Standardized 0.89%

YTD as of 12/14/17

Unit Value 19.03%
Standardized 17.03%

With optional enhanced death benefit

Monthly as of 11/30/17

Unit Value 2.88%
Standardized 0.88%

YTD as of 12/14/17

Unit Value 18.86%
Standardized 16.86%

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.

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.

The fund involves the risk that the stock prices of the companies in the portfolio will fall or will fail to rise. Many factors can adversely affect a stock's performance, including both general financial market conditions and factors related to a specific company or industry.

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 10/31/17

Alpha (%) -1.97
Beta 1.06
R Squared 0.96
Standard Deviation (3 yrs.) 10.72

Holdings

Top 10 holdings as of 10/31/17

Microsoft Corp 4.37%
Apple 4.28%
JPMorgan Chase 3.27%
Alphabet 2.83%
Bank Of America Corp 2.25%
Citigroup 1.87%
Johnson Johnson 1.72%
Facebook 1.66%
Cisco Systems 1.65%
Goldman Sachs Group The 1.65%
Top 10 holdings, total: 25.55%

Equity Holdings as of 09/30/17

MICROSOFT CORP 3.96%
APPLE INC 3.95%
JPMORGAN CHASE & CO 3.42%
BANK OF AMERICA CORP 2.17%
CITIGROUP INC 1.87%
ALPHABET INC-CL C 1.75%
JOHNSON & JOHNSON 1.68%
CISCO SYSTEMS INC 1.65%
GOLDMAN SACHS GROUP INC 1.63%
FACEBOOK INC-A 1.60%
COMCAST CORP-CLASS A 1.53%
AMGEN INC 1.46%
WALGREENS BOOTS ALLIANCE INC 1.39%
WAL-MART STORES INC 1.36%
AT&T INC 1.25%
BOEING CO/THE 1.23%
HOME DEPOT INC 1.15%
AMAZON.COM INC 1.14%
ROYAL DUTCH SHELL-SPON ADR-A 1.12%
MORGAN STANLEY 1.10%
PEPSICO INC 1.01%
BECTON DICKINSON AND CO 1.00%
ALPHABET INC-CL A 0.96%
APPLIED MATERIALS INC 0.95%
PFIZER INC 0.95%
CELGENE CORP 0.94%
LAM RESEARCH CORP 0.92%
DOWDUPONT INC 0.91%
GILEAD SCIENCES INC 0.91%
CONOCOPHILLIPS 0.87%
INTEL CORP 0.85%
SOUTHWEST AIRLINES CO 0.84%
VISA INC-CLASS A SHARES 0.84%
ORACLE CORP 0.82%
BAXTER INTERNATIONAL INC 0.81%
CVS HEALTH CORP 0.80%
AMERIPRISE FINANCIAL INC 0.74%
MCKESSON CORP 0.73%
DELL TECHNOLOGIES INC-CL V 0.72%
EXXON MOBIL CORP 0.72%
LIVE NATION ENTERTAINMENT IN 0.71%
CAPITAL ONE FINANCIAL CORP 0.70%
LOWES COMPANIES INC 0.69%
MASTERCARD INC - A 0.69%
PULTEGROUP INC 0.69%
NORFOLK SOUTHERN CORP 0.68%
NORTHROP GRUMMAN CORP 0.68%
TEXAS INSTRUMENTS INC 0.67%
CATERPILLAR INC 0.66%
CF INDUSTRIES HOLDINGS INC 0.65%
NRG ENERGY INC 0.64%
BEST BUY CO INC 0.62%
FEDEX CORP 0.61%
HUMANA INC 0.61%
INTL BUSINESS MACHINES CORP 0.61%
STATE STREET CORP 0.61%
ANTHEM INC 0.60%
BIOGEN INC 0.60%
COCA-COLA CO/THE 0.60%
FREEPORT-MCMORAN INC 0.60%
LEAR CORP 0.60%
WYNDHAM WORLDWIDE CORP 0.60%
EXELON CORP 0.59%
REGIONS FINANCIAL CORP 0.59%
LINCOLN NATIONAL CORP 0.58%
EASTERLY GOVERNMENT PROPERTI 0.56%
GENERAL MOTORS CO 0.56%
CUMMINS INC 0.55%
DXC TECHNOLOGY CO 0.54%
EXPEDIA INC 0.54%
HP INC 0.54%
PHILIP MORRIS INTERNATIONAL 0.54%
ROCKWELL AUTOMATION INC 0.54%
UNITED RENTALS INC 0.54%
VALERO ENERGY CORP 0.54%
HANESBRANDS INC 0.53%
HONEYWELL INTERNATIONAL INC 0.53%
JAZZ PHARMACEUTICALS PLC 0.53%
LAS VEGAS SANDS CORP 0.53%
HCA HEALTHCARE INC 0.52%
ENTERGY CORP 0.51%
MERCK & CO. INC. 0.51%
ARCHER-DANIELS-MIDLAND CO 0.50%
ENTERPRISE PRODUCTS PARTNERS 0.50%
EXPRESS SCRIPTS HOLDING CO 0.49%
FIRST DATA CORP- CLASS A 0.49%
TARGET CORP 0.49%
VERTEX PHARMACEUTICALS INC 0.49%
ALCOA CORP 0.48%
KKR & CO LP 0.48%
SUNCOR ENERGY INC 0.48%
AMERICAN INTERNATIONAL GROUP 0.47%
GOODYEAR TIRE & RUBBER CO 0.47%
CF CORP FORWARD PURCHASE P/P 144A 0.46%
ROSS STORES INC 0.45%
ARMADA HOFFLER PROPERTIES IN 0.44%
SYNCHRONY FINANCIAL 0.44%
BIOVERATIV INC 0.43%
MCCORMICK & CO-NON VTG SHRS 0.43%
CHARTER COMMUNICATIONS INC-A 0.42%
VERIZON COMMUNICATIONS INC 0.42%
RAYTHEON COMPANY 0.41%
DELIVERY HERO AG 0.40%
PIRELLI & C. SPA 0.40%
CBRE GROUP INC - A 0.39%
ASSURED GUARANTY LTD 0.37%
GAP INC/THE 0.36%
TPG PACE HOLDINGS CORP 0.36%
BAKER HUGHES A GE CO 0.35%
ADOBE SYSTEMS INC 0.34%
KRAFT HEINZ CO/THE 0.34%
MICRO FOCUS INTL-SPN ADR 0.34%
MARATHON OIL CORP 0.33%
SELECT ENERGY SVCS-A-1 0.33%
MANPOWERGROUP INC 0.32%
UNITED CONTINENTAL HOLDINGS 0.32%
AMERICAN AIRLINES GROUP INC 0.31%
PENN NATIONAL GAMING INC 0.31%
XEROX CORP 0.31%
EASTERLY ACQUISITION CORP 0.28%
KOMATSU LTD 0.28%
HANNON ARMSTRONG SUSTAINABLE 0.27%
KENNEDY-WILSON HOLDINGS INC 0.27%
EDISON INTERNATIONAL 0.26%
EOG RESOURCES INC 0.26%
ACTIVISION BLIZZARD INC 0.25%
FEDERAL STREET ACQUISITION 0.25%
INVESCO LTD 0.25%
TOTAL SA-SPON ADR 0.25%
AMERICAN TOWER CORP 05.5000 CV PFD 0.24%
ALIGNVEST ACQUISITION II C-A 0.21%
HYATT HOTELS CORP - CL A 0.21%
PLAINS GP HOLDINGS LP-CL A 0.20%
BECTON DICKINSON AND CO 06.1250 CV PFD 0.18%
KIMBELL ROYALTY PARTNERS LP 0.17%
NCR CORPORATION 0.17%
CAPITOL INVESTMENT CORP IV 0.16%
PLAYA HOTELS & RESORTS NV 0.16%
DISH NETWORK CORP-A 0.15%
GORES HOLDINGS II INC 0.13%
CISION LTD 0.09%
FORTERRA INC 0.09%
GLOBAL FASHION GRP P/P 0.02%
ALIGNVEST ACQUISITION - CW 0.01%
CISION LTD - CW22 0.01%
EASTERLY ACQ CORP - CW20 0.01%
FABFURNISH 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 09/30/17

MICROSOFT CORP 3.96%
APPLE INC 3.95%
JPMORGAN CHASE & CO 3.42%
BANK OF AMERICA CORP 2.17%
CITIGROUP INC 1.87%
ALPHABET INC-CL C 1.75%
JOHNSON & JOHNSON 1.68%
CISCO SYSTEMS INC 1.65%
GOLDMAN SACHS GROUP INC 1.63%
FACEBOOK INC-A 1.60%
COMCAST CORP-CLASS A 1.53%
AMGEN INC 1.46%
WALGREENS BOOTS ALLIANCE INC 1.39%
WAL-MART STORES INC 1.36%
AT&T INC 1.25%
BOEING CO/THE 1.23%
HOME DEPOT INC 1.15%
AMAZON.COM INC 1.14%
ROYAL DUTCH SHELL-SPON ADR-A 1.12%
MORGAN STANLEY 1.10%
PEPSICO INC 1.01%
BECTON DICKINSON AND CO 1.00%
ALPHABET INC-CL A 0.96%
APPLIED MATERIALS INC 0.95%
PFIZER INC 0.95%
CELGENE CORP 0.94%
LAM RESEARCH CORP 0.92%
DOWDUPONT INC 0.91%
GILEAD SCIENCES INC 0.91%
CONOCOPHILLIPS 0.87%
INTEL CORP 0.85%
SOUTHWEST AIRLINES CO 0.84%
VISA INC-CLASS A SHARES 0.84%
ORACLE CORP 0.82%
BAXTER INTERNATIONAL INC 0.81%
CVS HEALTH CORP 0.80%
AMERIPRISE FINANCIAL INC 0.74%
MCKESSON CORP 0.73%
DELL TECHNOLOGIES INC-CL V 0.72%
EXXON MOBIL CORP 0.72%
LIVE NATION ENTERTAINMENT IN 0.71%
CAPITAL ONE FINANCIAL CORP 0.70%
LOWES COMPANIES INC 0.69%
MASTERCARD INC - A 0.69%
PULTEGROUP INC 0.69%
NORFOLK SOUTHERN CORP 0.68%
NORTHROP GRUMMAN CORP 0.68%
TEXAS INSTRUMENTS INC 0.67%
CATERPILLAR INC 0.66%
CF INDUSTRIES HOLDINGS INC 0.65%
NRG ENERGY INC 0.64%
BEST BUY CO INC 0.62%
FEDEX CORP 0.61%
HUMANA INC 0.61%
INTL BUSINESS MACHINES CORP 0.61%
STATE STREET CORP 0.61%
ANTHEM INC 0.60%
BIOGEN INC 0.60%
COCA-COLA CO/THE 0.60%
FREEPORT-MCMORAN INC 0.60%
LEAR CORP 0.60%
WYNDHAM WORLDWIDE CORP 0.60%
EXELON CORP 0.59%
REGIONS FINANCIAL CORP 0.59%
LINCOLN NATIONAL CORP 0.58%
EASTERLY GOVERNMENT PROPERTI 0.56%
GENERAL MOTORS CO 0.56%
CUMMINS INC 0.55%
DXC TECHNOLOGY CO 0.54%
EXPEDIA INC 0.54%
HP INC 0.54%
PHILIP MORRIS INTERNATIONAL 0.54%
ROCKWELL AUTOMATION INC 0.54%
UNITED RENTALS INC 0.54%
VALERO ENERGY CORP 0.54%
HANESBRANDS INC 0.53%
HONEYWELL INTERNATIONAL INC 0.53%
JAZZ PHARMACEUTICALS PLC 0.53%
LAS VEGAS SANDS CORP 0.53%
HCA HEALTHCARE INC 0.52%
ENTERGY CORP 0.51%
MERCK & CO. INC. 0.51%
ARCHER-DANIELS-MIDLAND CO 0.50%
ENTERPRISE PRODUCTS PARTNERS 0.50%
EXPRESS SCRIPTS HOLDING CO 0.49%
FIRST DATA CORP- CLASS A 0.49%
TARGET CORP 0.49%
VERTEX PHARMACEUTICALS INC 0.49%
ALCOA CORP 0.48%
KKR & CO LP 0.48%
SUNCOR ENERGY INC 0.48%
AMERICAN INTERNATIONAL GROUP 0.47%
GOODYEAR TIRE & RUBBER CO 0.47%
CF CORP FORWARD PURCHASE P/P 144A 0.46%
ROSS STORES INC 0.45%
ARMADA HOFFLER PROPERTIES IN 0.44%
SYNCHRONY FINANCIAL 0.44%
BIOVERATIV INC 0.43%
MCCORMICK & CO-NON VTG SHRS 0.43%
CHARTER COMMUNICATIONS INC-A 0.42%
VERIZON COMMUNICATIONS INC 0.42%
RAYTHEON COMPANY 0.41%
DELIVERY HERO AG 0.40%
PIRELLI & C. SPA 0.40%
THE EURO EUR CALL ACCOUNT 0.40%
CBRE GROUP INC - A 0.39%
ASSURED GUARANTY LTD 0.37%
GAP INC/THE 0.36%
TPG PACE HOLDINGS CORP 0.36%
BAKER HUGHES A GE CO 0.35%
ADOBE SYSTEMS INC 0.34%
KRAFT HEINZ CO/THE 0.34%
MICRO FOCUS INTL-SPN ADR 0.34%
MARATHON OIL CORP 0.33%
SELECT ENERGY SVCS-A-1 0.33%
MANPOWERGROUP INC 0.32%
UNITED CONTINENTAL HOLDINGS 0.32%
AMERICAN AIRLINES GROUP INC 0.31%
PENN NATIONAL GAMING INC 0.31%
XEROX CORP 0.31%
EASTERLY ACQUISITION CORP 0.28%
KOMATSU LTD 0.28%
HANNON ARMSTRONG SUSTAINABLE 0.27%
KENNEDY-WILSON HOLDINGS INC 0.27%
EDISON INTERNATIONAL 0.26%
EOG RESOURCES INC 0.26%
ACTIVISION BLIZZARD INC 0.25%
FEDERAL STREET ACQUISITION 0.25%
INVESCO LTD 0.25%
TOTAL SA-SPON ADR 0.25%
AMERICAN TOWER CORP 05.5000 CV PFD 0.24%
ALIGNVEST ACQUISITION II C-A 0.21%
HYATT HOTELS CORP - CL A 0.21%
PLAINS GP HOLDINGS LP-CL A 0.20%
BECTON DICKINSON AND CO 06.1250 CV PFD 0.18%
KIMBELL ROYALTY PARTNERS LP 0.17%
NCR CORPORATION 0.17%
CAPITOL INVESTMENT CORP IV 0.16%
PLAYA HOTELS & RESORTS NV 0.16%
DISH NETWORK CORP-A 0.15%
GORES HOLDINGS II INC 0.13%
CISION LTD 0.09%
FORTERRA INC 0.09%
GLOBAL FASHION GRP P/P 0.02%
ALIGNVEST ACQUISITION - CW 0.01%
CISION LTD - CW22 0.01%
EASTERLY ACQ CORP - CW20 0.01%
FABFURNISH GMBH P/P 0.00%
NEW BIGFOOT OTHER ASSETS GMBH P/P 0.00%
NEW MIDDLE EAST OTHER ASSETS GMBH P/P 0.00%
POUND STERLING CALL ACCOUNT 0.00%

Prior top 10 holdings

Top 10 holdings as of 10/31/17
1: Microsoft Corp 4.37%
2: Apple 4.28%
3: JPMorgan Chase 3.27%
4: Alphabet 2.83%
5: Bank Of America Corp 2.25%
6: Citigroup 1.87%
7: Johnson Johnson 1.72%
8: Facebook 1.66%
9: Cisco Systems 1.65%
10: Goldman Sachs Group The 1.65%
Holdings represent 25.55% of portfolio
Top 10 holdings as of 09/30/17
1: Microsoft Corp 3.96%
2: Apple 3.95%
3: JPMorgan Chase 3.42%
4: Alphabet 2.70%
5: Bank Of America Corp 2.17%
6: Citigroup 1.87%
7: Johnson & Johnson 1.68%
8: Cisco Systems 1.65%
9: Goldman Sachs Group The 1.63%
10: Facebook 1.60%
Holdings represent 24.63% of portfolio
Top 10 holdings as of 08/31/17
1: Apple 4.33%
2: Microsoft Corp 4.14%
3: JPMorgan Chase 3.36%
4: Alphabet 2.81%
5: Bank Of America Corp 2.10%
6: Johnson Johnson 1.84%
7: Citigroup 1.82%
8: Comcast Corp 1.66%
9: Cisco Systems 1.64%
10: Facebook 1.64%
Holdings represent 25.34% of portfolio
Top 10 holdings as of 07/31/17
1: Microsoft Corp 3.99%
2: Apple 3.99%
3: Alphabet 3.44%
4: JPMorgan Chase 3.36%
5: Johnson & Johnson 2.14%
6: Bank Of America Corp 2.10%
7: Citigroup 1.82%
8: Comcast Corp 1.64%
9: Cisco Systems 1.59%
10: Goldman Sachs Group The 1.58%
Holdings represent 25.65% of portfolio

Portfolio Composition as of 10/31/17

Common stock 98.41%
Cash and net other assets 1.17%
Convertible preferred stock 0.42%

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.

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.The fund involves the risk that the stock prices of the companies in the portfolio will fall or will fail to rise. Many factors can adversely affect a stock's performance, including both general financial market conditions and factors related to a specific company or industry.

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 10/31/17

Information technology 25.60%
Financials 18.02%
Health care 13.54%
Consumer discretionary 12.65%
Industrials 8.33%
Consumer staples 6.21%
Energy 6.09%
Materials 2.93%
Utilities 2.02%
 
Other
4.61%
Real estate 1.91%
Telecommunication services 1.53%
Cash and net other assets 1.17%

Expenses

Sales Charges/Fees

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

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.The fund involves the risk that the stock prices of the companies in the portfolio will fall or will fail to rise. Many factors can adversely affect a stock's performance, including both general financial market conditions and factors related to a specific company or industry.

‡ 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%