Putnam Allstate Advisor Preferred

Putnam Multi-Cap Growth Subaccount

The subaccount seeks long-term capital appreciation.

Fund description

The subaccount invests in companies of all sizes across a range of industry sectors. The management team looks for stocks of innovative companies that are positioned in sectors believed to offer exceptional growth potential. The fund targets companies with strong management and superior financial characteristics.

Sales story

A flexible approach to seeking companies growing faster than the marketFlexibility: The fund's portfolio manager can invest in companies of all sizes.A growth strategy: The fund targets stocks of companies that are believed to offer above-average growth potential.A rigorous process: Supported by a strong research team, the fund's manager uses his stock-picking expertise and multiple resources to identify opportunities and manage risk.

Management team

Daily pricing as of 10/19/17

with optional enhanced death benefits
Unit Value $10.723213 $10.441103
Unit Value Change -0.000489 -0.000519

Lipper ranking ‡ as of 09/30/17

Category: Multi-Cap Growth Funds

  Percentile ranking Rank/Funds in category
10 yrs. 36% 28/79
1 yr. 22% 23/104
3 yrs. 35% 36/103
5 yrs. 19% 18/97

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. 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 09/30/17

Fiscal Year End December
Asset Class Putnam Allstate Advisor Preferred
Subaccount Status Open to new investors
Number of issues 120
Turnover (fiscal year end) 72%
Net Assets $733M
Inception Date 05/02/94

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 5.36% 20.31% 20.78% 9.39% 13.57% 6.07% 6.46%
Standardized 3.36% 18.31% 18.78% 9.39% 13.57% 6.07% 6.46%
With optional enhanced death benefit
Unit Value 5.32% 20.18% 20.60% 9.22% 13.39% 5.91% 6.30%
Standardized 3.32% 18.18% 18.60% 9.22% 13.39% 5.91% 6.30%
Actual performance
Unit Value 5.36% 20.31% 20.78% 9.39% 13.57% 6.07% 1.05%
Standardized 3.36% 18.31% 18.78% 9.39% 13.57% 6.07% 1.05%
With optional enhanced death benefit
Unit Value 5.32% 20.18% 20.60% 9.22% 13.39% 5.91% 2.68%
Standardized 3.32% 18.18% 18.60% 9.22% 13.39% 5.91% 2.68%

Annual Performance at NAV

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
3.98% -39.76% 29.96% 17.59% -6.65% 14.83% 34.19% 11.62% -1.94% 6.02%
With optional enhanced death benefit
3.82% -39.85% 29.76% 17.41% -6.79% 14.65% 33.99% 11.45% -2.08% 5.85%

Restated performance

Monthly as of 09/30/17

Unit Value 1.39%
Standardized -0.61%

YTD as of 10/19/17

Unit Value 22.43%
Standardized 20.43%

With optional enhanced death benefit

Monthly as of 09/30/17

Unit Value 1.38%
Standardized -0.62%

YTD as of 10/19/17

Unit Value 22.28%
Standardized 20.28%

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.

Recent performance benefitted from receipt of an Enron Class Action Settlement pertaining to investments made prior to 2002.

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.

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 09/30/17

Alpha (%) -2.24
Beta 1.07
R Squared 0.96
Standard Deviation (3 yrs.) 11.52

Holdings

Top 10 holdings as of 09/30/17

Alphabet 5.83%
Microsoft Corp 4.00%
Amazon.Com 3.63%
Visa 3.52%
Facebook 3.39%
Apple 3.23%
Northrop Grumman Corp 2.61%
Becton Dickinson And 2.58%
Norfolk Southern Corp 2.35%
Bank Of America Corp 2.26%
Top 10 holdings, total: 33.40%

Equity Holdings as of 06/30/17

ALPHABET INC-CL C 5.80%
APPLE INC 4.06%
MICROSOFT CORP 3.87%
AMAZON.COM INC 3.80%
VISA INC-CLASS A SHARES 3.59%
NORFOLK SOUTHERN CORP 2.91%
FACEBOOK INC-A 2.72%
BECTON DICKINSON AND CO 2.68%
NORTHROP GRUMMAN CORP 2.43%
HOME DEPOT INC 2.08%
DANAHER CORP 2.01%
BANK OF AMERICA CORP 1.79%
WALGREENS BOOTS ALLIANCE INC 1.79%
ALIBABA GROUP HOLDING-SP ADR 1.73%
AGILENT TECHNOLOGIES INC 1.58%
JOHNSON CONTROLS INTERNATION 1.56%
BROADCOM LTD 1.48%
UNITEDHEALTH GROUP INC 1.45%
SCHWAB (CHARLES) CORP 1.38%
ADOBE SYSTEMS INC 1.32%
UNITED TECHNOLOGIES CORP 1.27%
INTUITIVE SURGICAL INC 1.26%
BOSTON SCIENTIFIC CORP 1.19%
CELGENE CORP 1.17%
CHARTER COMMUNICATIONS INC-A 1.11%
PRICELINE GROUP INC/THE 1.07%
SALESFORCE.COM INC 1.04%
FIDELITY NATIONAL INFO SERV 1.03%
SHERWIN-WILLIAMS CO/THE 1.01%
CONSTELLATION BRANDS INC-A 0.97%
BIOGEN INC 0.95%
SYMRISE AG 0.95%
HUMANA INC 0.93%
PEPSICO INC 0.93%
LIVE NATION ENTERTAINMENT IN 0.91%
ALBEMARLE CORP 0.88%
COMCAST CORP-CLASS A 0.87%
APPLIED MATERIALS INC 0.86%
MIDDLEBY CORP 0.82%
SYNCHRONY FINANCIAL 0.79%
EXPEDIA INC 0.76%
WASTE CONNECTIONS INC 0.76%
HALLIBURTON CO 0.74%
HILTON WORLDWIDE HOLDINGS IN 0.71%
JAZZ PHARMACEUTICALS PLC 0.71%
SEALED AIR CORP 0.70%
INVESCO LTD 0.68%
TENCENT HOLDINGS LTD 0.65%
PACWEST BANCORP 0.64%
GAMING AND LEISURE PROPERTIE 0.63%
ADIDAS AG 0.62%
W.R. GRACE & CO 0.62%
LAS VEGAS SANDS CORP 0.61%
PULTEGROUP INC 0.61%
CUMMINS INC 0.60%
FORTIVE CORP 0.60%
FORTUNE BRANDS HOME & SECURI 0.60%
DOVER CORP 0.59%
REGENERON PHARMACEUTICALS 0.59%
PRUDENTIAL PLC 0.57%
DAVE & BUSTER'S ENTERTAINMEN 0.54%
WALT DISNEY CO/THE 0.51%
PROOFPOINT INC 0.50%
RPC GROUP PLC 0.50%
STERICYCLE INC 0.50%
AIRBUS SE 0.49%
LINDBLAD EXPEDITIONS HOLDING 0.49%
MONSTER BEVERAGE CORP 0.49%
EOG RESOURCES INC 0.48%
NVIDIA CORP 0.48%
SUNCOR ENERGY INC 0.48%
PLAINS GP HOLDINGS LP-CL A 0.47%
SUMMIT MATERIALS INC -CL A 0.47%
CLOVIS ONCOLOGY INC 0.45%
CHENIERE ENERGY INC 0.44%
QORVO INC 0.44%
ULTA BEAUTY INC 0.44%
IHS MARKIT LTD 0.42%
BWX TECHNOLOGIES INC 0.41%
LOGMEIN INC 0.41%
MICRON TECHNOLOGY INC 0.41%
REALPAGE INC 0.41%
YUM CHINA HOLDINGS INC 0.40%
COLGATE-PALMOLIVE CO 0.39%
KION GROUP AG 0.37%
DENTSPLY SIRONA INC 0.36%
HAMILTON LANE INC-CLASS A 0.34%
SERVICENOW INC 0.34%
KLA-TENCOR CORP 0.33%
DISH NETWORK CORP-A 0.30%
BIOVERATIV INC 0.28%
INSTRUCTURE INC 0.28%
CAVIUM INC 0.27%
GENMARK DIAGNOSTICS INC 0.27%
BIO-RAD LABORATORIES-A 0.26%
HOYA CORP 0.26%
PENUMBRA INC 0.26%
WISDOMTREE INVESTMENTS INC 0.26%
T-MOBILE US INC 0.20%
DELIVERY HERO HOLDIN P/P 0.19%
BECTON DICKINSON AND CO 06.1250 CV PFD 0.18%
SELECT ENERGY SVCS 0.18%
OPORTUN FIN CORP P/P SERIES H PFD 0.16%
PEGASYSTEMS INC 0.15%
CARDIOME PHARMA CORP 0.10%
OVID THERAPEUTICS INC - RESTRICTED 0.08%
OKTA INC 0.07%
OPORTUN FIN CORP P/P 0.05%
OPORTUN FIN G-1 PFD CV P/P 0.05%
OPORTUN FIN F-1 PFD CV P/P 0.04%
GLOBAL FASHION GRP P/P 0.02%
OPORTUN FIN C-1 PFD CV P/P 0.01%
OPORTUN FIN D-1 PFD CV P/P 0.01%
OPORTUN FIN F PFD CV P/P 0.01%
RE/MAX HOLDINGS INC-CL A 0.01%
FABFURNISH GMBH P/P 0.00%
NEURALSTEM INC SERIES K COMMON STOCK PURCHASE WARRANT 0.00%
NEW BIGFOOT OTHER AS P/P 0.00%
NEW MIDDLE EAST OTHE P/P 0.00%
OPORTUN FIN A-1 PFD CV P/P 0.00%
OPORTUN FIN B-1 PFD CV P/P 0.00%
OPORTUN FIN E-1 PFD CV P/P 0.00%

Full Portfolio Holdings as of 06/30/17

ALPHABET INC-CL C 5.80%
APPLE INC 4.06%
MICROSOFT CORP 3.87%
AMAZON.COM INC 3.80%
VISA INC-CLASS A SHARES 3.59%
NORFOLK SOUTHERN CORP 2.91%
FACEBOOK INC-A 2.72%
BECTON DICKINSON AND CO 2.68%
NORTHROP GRUMMAN CORP 2.43%
HOME DEPOT INC 2.08%
DANAHER CORP 2.01%
BANK OF AMERICA CORP 1.79%
WALGREENS BOOTS ALLIANCE INC 1.79%
ALIBABA GROUP HOLDING-SP ADR 1.73%
AGILENT TECHNOLOGIES INC 1.58%
JOHNSON CONTROLS INTERNATION 1.56%
BROADCOM LTD 1.48%
UNITEDHEALTH GROUP INC 1.45%
SCHWAB (CHARLES) CORP 1.38%
ADOBE SYSTEMS INC 1.32%
UNITED TECHNOLOGIES CORP 1.27%
INTUITIVE SURGICAL INC 1.26%
BOSTON SCIENTIFIC CORP 1.19%
CELGENE CORP 1.17%
CHARTER COMMUNICATIONS INC-A 1.11%
PRICELINE GROUP INC/THE 1.07%
SALESFORCE.COM INC 1.04%
FIDELITY NATIONAL INFO SERV 1.03%
SHERWIN-WILLIAMS CO/THE 1.01%
CONSTELLATION BRANDS INC-A 0.97%
BIOGEN INC 0.95%
SYMRISE AG 0.95%
HUMANA INC 0.93%
PEPSICO INC 0.93%
LIVE NATION ENTERTAINMENT IN 0.91%
ALBEMARLE CORP 0.88%
COMCAST CORP-CLASS A 0.87%
APPLIED MATERIALS INC 0.86%
MIDDLEBY CORP 0.82%
SYNCHRONY FINANCIAL 0.79%
EXPEDIA INC 0.76%
WASTE CONNECTIONS INC 0.76%
HALLIBURTON CO 0.74%
HILTON WORLDWIDE HOLDINGS IN 0.71%
JAZZ PHARMACEUTICALS PLC 0.71%
SEALED AIR CORP 0.70%
INVESCO LTD 0.68%
TENCENT HOLDINGS LTD 0.65%
PACWEST BANCORP 0.64%
GAMING AND LEISURE PROPERTIE 0.63%
ADIDAS AG 0.62%
W.R. GRACE & CO 0.62%
LAS VEGAS SANDS CORP 0.61%
PULTEGROUP INC 0.61%
CUMMINS INC 0.60%
FORTIVE CORP 0.60%
FORTUNE BRANDS HOME & SECURI 0.60%
DOVER CORP 0.59%
REGENERON PHARMACEUTICALS 0.59%
PRUDENTIAL PLC 0.57%
DAVE & BUSTER'S ENTERTAINMEN 0.54%
WALT DISNEY CO/THE 0.51%
PROOFPOINT INC 0.50%
RPC GROUP PLC 0.50%
STERICYCLE INC 0.50%
AIRBUS SE 0.49%
LINDBLAD EXPEDITIONS HOLDING 0.49%
MONSTER BEVERAGE CORP 0.49%
EOG RESOURCES INC 0.48%
NVIDIA CORP 0.48%
SUNCOR ENERGY INC 0.48%
PLAINS GP HOLDINGS LP-CL A 0.47%
SUMMIT MATERIALS INC -CL A 0.47%
CLOVIS ONCOLOGY INC 0.45%
CHENIERE ENERGY INC 0.44%
QORVO INC 0.44%
ULTA BEAUTY INC 0.44%
IHS MARKIT LTD 0.42%
BWX TECHNOLOGIES INC 0.41%
LOGMEIN INC 0.41%
MICRON TECHNOLOGY INC 0.41%
REALPAGE INC 0.41%
YUM CHINA HOLDINGS INC 0.40%
COLGATE-PALMOLIVE CO 0.39%
KION GROUP AG 0.37%
DENTSPLY SIRONA INC 0.36%
HAMILTON LANE INC-CLASS A 0.34%
SERVICENOW INC 0.34%
KLA-TENCOR CORP 0.33%
DISH NETWORK CORP-A 0.30%
BIOVERATIV INC 0.28%
INSTRUCTURE INC 0.28%
CAVIUM INC 0.27%
GENMARK DIAGNOSTICS INC 0.27%
BIO-RAD LABORATORIES-A 0.26%
HOYA CORP 0.26%
PENUMBRA INC 0.26%
WISDOMTREE INVESTMENTS INC 0.26%
T-MOBILE US INC 0.20%
DELIVERY HERO HOLDIN P/P 0.19%
BECTON DICKINSON AND CO 06.1250 CV PFD 0.18%
SELECT ENERGY SVCS 0.18%
OPORTUN FIN CORP P/P SERIES H PFD 0.16%
PEGASYSTEMS INC 0.15%
CARDIOME PHARMA CORP 0.10%
OVID THERAPEUTICS INC - RESTRICTED 0.08%
OKTA INC 0.07%
OPORTUN FIN CORP P/P 0.05%
OPORTUN FIN G-1 PFD CV P/P 0.05%
OPORTUN FIN F-1 PFD CV P/P 0.04%
GLOBAL FASHION GRP P/P 0.02%
OPORTUN FIN C-1 PFD CV P/P 0.01%
OPORTUN FIN D-1 PFD CV P/P 0.01%
OPORTUN FIN F PFD CV P/P 0.01%
RE/MAX HOLDINGS INC-CL A 0.01%
CANADIAN DOLLAR ACCOUNT 0.00%
EUR/USD 09/20/2017 UBS 0.00%
FABFURNISH GMBH P/P 0.00%
KOREAN WON CALL ACCOUNT 0.00%
NEURALSTEM INC SERIES K COMMON STOCK PURCHASE WARRANT 0.00%
NEW BIGFOOT OTHER AS P/P 0.00%
NEW MIDDLE EAST OTHE P/P 0.00%
OPORTUN FIN A-1 PFD CV P/P 0.00%
OPORTUN FIN B-1 PFD CV P/P 0.00%
OPORTUN FIN E-1 PFD CV P/P 0.00%
POUND STERLING CALL ACCOUNT 0.00%
EUR/USD 09/20/2017 JPMCB -0.01%
GBP/USD 09/20/2017 BANKAM -0.01%

Prior top 10 holdings

Top 10 holdings as of 09/30/17
1: Alphabet 5.83%
2: Microsoft Corp 4.00%
3: Amazon.Com 3.63%
4: Visa 3.52%
5: Facebook 3.39%
6: Apple 3.23%
7: Northrop Grumman Corp 2.61%
8: Becton Dickinson And 2.58%
9: Norfolk Southern Corp 2.35%
10: Bank Of America Corp 2.26%
Holdings represent 33.40% of portfolio
Top 10 holdings as of 08/31/17
1: Alphabet 5.75%
2: Apple 4.16%
3: Microsoft Corp 4.04%
4: Amazon.Com 3.73%
5: Visa 3.48%
6: Facebook 3.43%
7: Becton Dickinson And 2.83%
8: Northrop Grumman Corp 2.49%
9: Norfolk Southern Corp 2.33%
10: Alibaba Group Holding 2.05%
Holdings represent 34.29% of portfolio
Top 10 holdings as of 07/31/17
1: Alphabet 5.74%
2: Microsoft Corp 3.96%
3: Apple 3.80%
4: Amazon.Com 3.78%
5: Facebook 3.40%
6: Visa 3.38%
7: Becton Dickinson And 2.88%
8: Norfolk Southern Corp 2.62%
9: Northrop Grumman Corp 2.42%
10: Home Depot The 1.96%
Holdings represent 33.94% of portfolio
Top 10 holdings as of 06/30/17
1: Alphabet 5.80%
2: Apple 4.06%
3: Microsoft Corp 3.87%
4: Amazon.Com 3.80%
5: Visa 3.59%
6: Norfolk Southern Corp 2.91%
7: Becton Dickinson And 2.86%
8: Facebook 2.72%
9: Northrop Grumman Corp 2.43%
10: Home Depot The 2.08%
Holdings represent 34.12% of portfolio

Portfolio Composition as of 09/30/17

Common stock 98.54%
Cash and net other assets 1.22%
Convertible preferred stock 0.24%

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.

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. Growth investing targets companies with above-average earnings that may be subject to price volatility if earnings expectations are not met.

Top Industry Sectors as of 09/30/17

Information technology 35.50%
Health care 17.18%
Consumer discretionary 15.33%
Industrials 13.67%
Financials 6.90%
Materials 4.35%
Consumer staples 3.22%
Energy 2.04%
Cash and net other assets 1.22%
 
Other
0.59%
Real estate 0.59%

Expenses

Sales Charges/Fees

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

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. 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 2.00%
2 1.00%
3+ 0.00%