Putnam Allstate Advisor Preferred

Putnam Small Cap Value Subaccount

The subaccount seeks capital appreciation.

Fund description

The subaccount pursues its objective of long-term capital appreciation by investing in stocks of small companies that are undergoing positive changes. In accordance with its value strategy, it seeks holdings that have below-average price/earnings ratios and that are priced below their long-term business value. The subaccount's focus on low valuation helps to manage the risk associated with investing in small companies.

Sales story

Pursuing capital appreciation through undervalued small companiesSmall companies: Often overlooked by Wall Street analysts, the stocks of small companies can represent attractive opportunities to firms with strong research capabilities.A value strategy: The fund focuses on finding small companies whose stocks are priced below their long-term potential, and where there may be a catalyst for positive change.Rigorous research: The portfolio managers and a team of senior research analysts offer the collaboration of a boutique with the extensive resources of a large, global firm.

Management team

Daily pricing as of 10/14/19

with optional enhanced death benefits
Unit Value $32.63502 $31.681955
Unit Value Change -0.114747 -0.111789

Lipper ranking ‡ as of 08/31/19

Category: Small-Cap Value Funds

  Percentile ranking Rank/Funds in category
10 yrs. 51% 19/37
1 yr. 79% 32/40
3 yrs. 86% 35/40
5 yrs. 68% 27/39

The fund invests all or a portion of its assets in small to midsize companies. Such investments increase the risk of greater price fluctuations. Withdrawals prior to age 59 1/2 may be subject to a 10% IRS penalty.Although value investing targets stocks believed to be priced too low, there is no guarantee they will appreciate.

‡ 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 09/30/19

Fiscal Year End December
Asset Class Putnam Allstate Advisor Preferred
Subaccount Status Open to new investors
Number of issues 118
Turnover (fiscal year end) 561%
Net Assets $117M
Inception Date 04/30/99

Performance

Performance as of 09/30/19

Annualized Performance Last Quarter Year
to Date
1 yr. 3 yrs. 5 yrs. 10 yrs. Life of
subaccount
Restated performance
Unit Value -2.72% 12.15% -14.34% 2.52% 3.33% 7.90% 6.44%
Standardized -4.66% 10.15% -16.05% 2.52% 3.33% 7.90% 6.44%
With optional enhanced death benefit
Unit Value -2.75% 12.03% -14.47% 2.36% 3.18% 7.74% 6.28%
Standardized -4.70% 10.03% -16.18% 2.36% 3.18% 7.74% 6.28%
Actual performance
Unit Value -2.72% 12.15% -14.34% 2.52% 3.33% 7.90% 6.43%
Standardized -4.66% 10.15% -16.05% 2.52% 3.33% 7.90% 6.43%
With optional enhanced death benefit
Unit Value -- -- -- -- -- -- --
Standardized -- -- -- -- -- -- --

Annual Performance at NAV

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
29.36% 23.91% -6.30% 15.54% 37.31% 1.73% -5.82% 25.40% 6.10% -21.26%
With optional enhanced death benefit
29.16% 23.72% -6.44% 15.37% 37.10% 1.57% -5.96% 25.21% 5.94% -21.38%

Restated performance

Monthly as of 09/30/19

Unit Value 4.66%
Standardized 2.66%

YTD as of 10/14/19

Unit Value 11.46%
Standardized 9.46%

With optional enhanced death benefit

Monthly as of 09/30/19

Unit Value 4.65%
Standardized 2.65%

YTD as of 10/14/19

Unit Value 11.32%
Standardized 9.32%

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 Capital Manager products are flexible-premium variable annuities held by Talcott Resolution Life, Inc., 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 Talcott Resolution 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 Talcott Resolution at 1-800-521-0538 or Allstate at 1-800-390-1277.

The fund invests all or a portion of its assets in small to midsize companies. Such investments increase the risk of greater price fluctuations. Withdrawals prior to age 59 1/2 may be subject to a 10% IRS penalty.

Although value investing targets stocks believed to be priced too low, there is no guarantee they will appreciate.

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 08/31/19

Alpha (%) -2.54
Beta 1.02
R Squared 0.95
Standard Deviation (3 yrs.) 18.01

Holdings

Top 10 holdings as of 08/31/19

Scorpio Tankers 1.60%
Allete 1.45%
Brookdale Senior Living 1.38%
Caci International 1.38%
Federal Signal Corp 1.33%
William Lyon Homes 1.31%
Premier 1.27%
Qts Realty Trust 1.27%
Portland General Electric 1.26%
Netgear 1.26%
Top 10 holdings, total: 13.51%

Full Portfolio Holdings as of 09/30/19

SCORPIO TANKERS INC SEDOL BHXD297 1.75%
WILLIAM LYON HOMES-CL A SEDOL B9C60K8 1.46%
ALLETE INC SEDOL B02R1L6 1.43%
FEDERAL SIGNAL CORP SEDOL 2333986 1.38%
BROOKDALE SENIOR LIVING INC SEDOL B0PZN33 1.32%
NETGEAR INC SEDOL 2688363 1.31%
QTS REALTY TRUST INC-CL A SEDOL BDSV8H8 1.29%
SYNNEX CORP SEDOL 2002554 1.26%
UNITIL CORP SEDOL 2925037 1.24%
FIRST HORIZON NATIONAL CORP 1.23%
LADDER CAPITAL CORP-REIT SEDOL BJ367P1 1.22%
SENIOR HOUSING PROP TRUST SEDOL 2501631 1.22%
PORTLAND GENERAL ELECTRIC CO SEDOL B125XQ6 1.21%
CACI INTERNATIONAL INC -CL A SEDOL 2159267 1.21%
PALOMAR HOLDINGS INC SEDOL BJYLZK6 1.18%
VECTRUS INC SEDOL BQS2V17 1.18%
MAGNOLIA OIL & GAS CORP - A SEDOL BF2GC59 1.16%
SP PLUS CORP SEDOL BH2QZH6 1.16%
JABIL INC SEDOL 2471789 1.16%
CEDAR FAIR LP SEDOL 2181453 1.15%
STERLING BANCORP/DE SEDOL BFNXVB8 1.13%
SYNOVUS FINANCIAL CORP SEDOL BMH4NJ8 1.12%
J2 GLOBAL INC SEDOL B75DGJ3 1.11%
HERITAGE INSURANCE HOLDINGS SEDOL BMN9870 1.11%
WALKER & DUNLOP INC SEDOL B4TZV44 1.10%
COLUMBIA PROPERTY TRUST INC SEDOL BFLY9C0 1.09%
OFG BANCORP SEDOL B87LKR8 1.08%
SPIRIT REALTY CAPITAL INC SEDOL BHHZBZ8 1.08%
PHOTRONICS INC SEDOL 2687315 1.07%
INVESTORS BANCORP INC SEDOL BMHT4M3 1.06%
TCF FINANCIAL CORP SEDOL BK5FNZ5 1.06%
MESA AIR GROUP INC SEDOL BFZZJ96 1.06%
QUANEX BUILDING PRODUCTS SEDOL B2QXCJ9 1.03%
FIRST MERCHANTS CORP SEDOL 2342410 1.03%
GAMING AND LEISURE PROPERTIE SEDOL BFPK4S5 1.03%
GMS INC SEDOL BYY9FS3 1.03%
BOISE CASCADE CO SEDOL B9BP4R1 1.02%
UNIVEST FINANCIAL CORP SEDOL 2690636 1.02%
PERFICIENT INC SEDOL 2442547 1.01%
PREMIER INC-CLASS A SEDOL BDZDRC5 1.01%
VERMILION ENERGY INC SEDOL B607XS1 1.01%
STORE CAPITAL CORP SEDOL BSKRKJ5 1.00%
ZAGG INC SEDOL B1BYGH6 0.98%
ARGO GROUP INTERNATIONAL SEDOL 2499543 0.94%
PAR PACIFIC HOLDINGS INC SEDOL BJH08C3 0.93%
TRONOX HOLDINGS PLC- A SEDOL BJT16S6 0.93%
BIG LOTS INC SEDOL 2218447 0.92%
SHOE CARNIVAL INC SEDOL 2805474 0.92%
COOPER TIRE & RUBBER SEDOL 2222608 0.90%
AMERIS BANCORP SEDOL 2038849 0.90%
PREFERRED BANK/LOS ANGELES SEDOL 2763602 0.90%
IBERIABANK CORP SEDOL 2452450 0.89%
GRANITE POINT MORTGAGE TRUST SEDOL BF11FD4 0.87%
MAGELLAN HEALTH INC SEDOL 2307787 0.86%
WINTRUST FINANCIAL CORP SEDOL 2425258 0.86%
HANCOCK WHITNEY CORP SEDOL 2415497 0.85%
REXNORD CORP SEDOL B4NPMX6 0.85%
NESCO HOLDINGS INC SEDOL BHTGB71 0.84%
STERLING CONSTRUCTION CO 0.83%
CHEESECAKE FACTORY INC/THE SEDOL 2192392 0.83%
CONNECTONE BANCORP INC SEDOL BNQ4YF9 0.83%
CLARUS CORP SEDOL BF5QHG2 0.82%
WESTERN ALLIANCE BANCORP SEDOL B0CCGJ4 0.82%
PARSONS CORP SEDOL BJN4N02 0.82%
CHATHAM LODGING TRUST SEDOL B5LYMC1 0.81%
NEW MOUNTAIN FINANCE CORP SEDOL B61WWF5 0.81%
HERMAN MILLER INC SEDOL 2594222 0.80%
ENCANA CORP SEDOL 2793182 0.80%
CONSOLIDATED WATER CO-ORD SH SEDOL 2099095 0.80%
MEET GROUP INC/THE SEDOL BYWW6W5 0.80%
DINE BRANDS GLOBAL INC SEDOL 2456957 0.78%
WILLSCOT CORP SEDOL BF6QP89 0.78%
MYR GROUP INC/DELAWARE SEDOL B3CLS18 0.78%
MADISON SQUARE GARDEN CO- A SEDOL BYQCZ35 0.77%
FRANKLIN FINANCIAL NETWORK SEDOL B84SJL9 0.76%
AMERESCO INC-CL A SEDOL B3SWPT2 0.75%
LAKELAND BANCORP INC SEDOL 2620031 0.75%
EAGLE MATERIALS INC 0.74%
CECO ENVIRONMENTAL CORP SEDOL 2011970 0.72%
OLIN CORP SEDOL 2658526 0.71%
QUAD GRAPHICS INC SEDOL B3YM983 0.71%
SCIPLAY CORP-CLASS A SEDOL BJMXTM4 0.70%
SHENANDOAH TELECOMMUNICATION SEDOL 2676692 0.70%
COLUMBUS MCKINNON CORP/NY SEDOL 2211071 0.69%
ARCH COAL INC - A SEDOL BYYHNV6 0.68%
MAYVILLE ENGINEERING CO INC SEDOL BJLD0Y4 0.68%
ARES CAPITAL CORP SEDOL B032FN0 0.68%
BLOOMIN' BRANDS INC SEDOL B847RJ0 0.66%
FIRST DEFIANCE FINL CORP SEDOL 2356701 0.65%
OCEANFIRST FINANCIAL CORP SEDOL 2125901 0.64%
SELECT ENERGY SERVICES INC-A SEDOL BDHSLL5 0.62%
LUMENTUM HOLDINGS INC SEDOL BYM9ZP2 0.62%
JOHN B. SANFILIPPO & SON INC SEDOL 2772998 0.61%
HOMESTREET INC SEDOL B4WHS46 0.59%
ACADIA HEALTHCARE CO INC SEDOL B65VZ37 0.59%
ALCENTRA CAPITAL CORP SEDOL BM7SDT0 0.59%
VERSO CORP - A SEDOL BYN9TR1 0.58%
TPG SPECIALTY LENDING INC SEDOL BKRVMQ5 0.57%
CLEVELAND-CLIFFS INC SEDOL BYVZ186 0.56%
NEWMARK GROUP INC-CLASS A SEDOL BF1Q6P8 0.53%
PEOPLES BANCORP INC SEDOL 2679419 0.47%
CAMDEN NATIONAL CORP SEDOL 2116659 0.47%
PROPETRO HOLDING CORP SEDOL BYXR9C0 0.46%
HNI CORP 0.45%
PNM RESOURCES INC SEDOL 2707826 0.40%
CROSSFIRST BANKSHARES INC SEDOL BK0XBX8 0.40%
SOUTHERN FIRST BANCSHARES SEDOL 2508030 0.36%
LIONS GATE ENTERTAINMENT-A SEDOL BD8NBC0 0.35%
ATLANTIC UNION BANKSHARES CO SEDOL BFZ9DB8 0.33%
RANGE RESOURCES CORP SEDOL 2523334 0.30%
HAYNES INTERNATIONAL INC SEDOL B02WVH7 0.27%
CARS.COM INC SEDOL BYXHTC0 0.24%
COASTAL FINANCIAL CORP/WA SEDOL BF7J9X0 0.18%
TRIPLEPOINT VENTURE GROWTH B SEDOL BK8G322 0.16%
BEL FUSE INC-CL B 0.14%
MANITEX INTERNATIONAL INC SEDOL B03DVM4 0.12%
NESCO HOLDINGS-CW25 SEDOL BJ01GS5 0.02%
BANCTEC INC-144A CONTINGENT VALUE RIGHTS 0.00%
FERROGLOBE REPRESENTATION & 0.00%

Prior top 10 holdings

Top 10 holdings as of 08/31/19
1: Scorpio Tankers 1.60%
2: Allete 1.45%
3: Brookdale Senior Living 1.38%
4: Caci International 1.38%
5: Federal Signal Corp 1.33%
6: William Lyon Homes 1.31%
7: Premier 1.27%
8: Qts Realty Trust 1.27%
9: Portland General Electric 1.26%
10: Netgear 1.26%
Holdings represent 13.51% of portfolio
Top 10 holdings as of 07/31/19
1: Premier 1.50%
2: Cedar Fair Lp 1.44%
3: Mesa Air Group 1.37%
4: Allete 1.35%
5: William Lyon Homes 1.33%
6: Synnex Corp 1.29%
7: Federal Signal Corp 1.28%
8: Scorpio Tankers 1.24%
9: Brookdale Senior Living 1.21%
10: First Horizon National Corp 1.18%
Holdings represent 13.19% of portfolio
Top 10 holdings as of 06/30/19
1: Premier 1.55%
2: Scorpio Tankers 1.51%
3: Vermilion Energy 1.44%
4: Cedar Fair Lp 1.38%
5: Tronox Holdings 1.35%
6: William Lyon Homes 1.32%
7: Synnex Corp 1.29%
8: Jabil 1.26%
9: Allete 1.23%
10: Mesa Air Group 1.22%
Holdings represent 13.55% of portfolio
Top 10 holdings as of 05/31/19
1: Cedar Fair Lp 1.55%
2: Premier 1.52%
3: Vermilion Energy 1.46%
4: William Lyon Homes 1.41%
5: Scorpio Tankers 1.40%
6: Mesa Air Group 1.32%
7: Caci International 1.24%
8: Sp Plus Corp 1.24%
9: Allete 1.22%
10: Hancock Whitney Corp 1.22%
Holdings represent 13.58% of portfolio

Portfolio Composition as of 08/31/19

Common stock 96.98%
Cash and net other assets 3.02%

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.

The fund invests all or a portion of its assets in small to midsize companies. Such investments increase the risk of greater price fluctuations. Withdrawals prior to age 59 1/2 may be subject to a 10% IRS penalty.Although value investing targets stocks believed to be priced too low, there is no guarantee they will appreciate.

Top Industry Sectors as of 08/31/19

Financials 30.30%
Industrials 14.70%
Information technology 9.62%
Consumer discretionary 8.98%
Real estate 8.06%
Energy 7.35%
Materials 5.10%
Utilities 4.67%
Health care 4.08%
 
Other
7.14%
Communication services 3.87%
Cash and net other assets 3.02%
Consumer staples 0.25%

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. Withdrawals prior to age 59 1/2 may be subject to a 10% IRS penalty.Although value investing targets stocks believed to be priced too low, there is no guarantee they will appreciate.

‡ 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%