Putnam Allstate Advisor Preferred

Putnam Global Utilities Subaccount

The subaccount seeks capital growth and current income.

Fund description

The subaccount pursues its objective of growth and income by targeting a wide range of utilities, including natural gas, electric, and communication services companies. By investing in stocks and bonds of well-managed utilities that Putnam believes are priced below their underlying worth, the subaccount seeks consistent performance in all market environments.

Sales story

Investing in the utilities sectorA dynamic sector: From distribution to power storage, the fund seeks out companies that profit from the growth of and demand for utilities.A diversified approach: The fund may invest in domestic and foreign markets, and companies of different sizes across several industries and varying degrees of regulation.Actively managed: Unlike passively managed ETFs, Putnam global sector funds combine rigorous fundamental research and disciplined quantitative analysis with macroeconomic views.

Management team

Daily pricing as of 10/20/17

with optional enhanced death benefits
Unit Value $13.958088 $13.5909
Unit Value Change -0.023502 -0.02294

The fund concentrates its investments in one region or in one sector and involves more risk than a fund that invests more broadly. 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 28
Turnover (fiscal year end) 12%
Net Assets $71M
Inception Date 05/01/92

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 5.96% 19.07% 11.53% 3.47% 5.66% -0.21% 4.50%
Standardized 3.96% 17.07% 9.53% 3.47% 5.66% -0.21% 4.50%
With optional enhanced death benefit
Unit Value 5.92% 18.93% 11.36% 3.31% 5.50% -0.36% 4.34%
Standardized 3.92% 16.93% 9.36% 3.31% 5.50% -0.36% 4.34%
Actual performance
Unit Value 5.96% 19.07% 11.53% 3.47% 5.66% -0.21% 1.91%
Standardized 3.96% 17.07% 9.53% 3.47% 5.66% -0.21% 1.91%
With optional enhanced death benefit
Unit Value 5.92% 18.93% 11.36% 3.31% 5.50% -0.36% 1.72%
Standardized 3.92% 16.93% 9.36% 3.31% 5.50% -0.36% 1.72%

Annual Performance at NAV

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
17.96% -31.64% 5.59% 0.15% -6.96% 3.30% 11.94% 12.69% -11.40% 0.30%
With optional enhanced death benefit
17.77% -31.74% 5.42% 0.00% -7.11% 3.14% 11.77% 12.52% -11.54% 0.15%

Restated performance

Monthly as of 09/30/17

Unit Value -1.77%
Standardized -3.74%

YTD as of 10/20/17

Unit Value 21.34%
Standardized 19.34%

With optional enhanced death benefit

Monthly as of 09/30/17

Unit Value -1.79%
Standardized -3.75%

YTD as of 10/20/17

Unit Value 21.19%
Standardized 19.19%

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.

The fund concentrates its investments in one region or in one sector and involves more risk than a fund that invests more broadly. 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.


Holdings

Top 10 holdings as of 09/30/17

Exelon Corp 8.56%
Nextera Energy 8.06%
Pg&E Corp 7.05%
American Electric Power 6.56%
American Water Works 5.83%
Veolia Environnement 5.77%
Nrg Energy 4.59%
Uniper 4.48%
Southern The 4.42%
Enel Spa 4.28%
Top 10 holdings, total: 59.60%

Equity Holdings as of 06/30/17

EXELON CORP 8.42%
NEXTERA ENERGY INC 7.92%
P G & E CORP 7.06%
AMERICAN ELECTRIC POWER 6.66%
SSE PLC 5.91%
AMERICAN WATER WORKS CO INC 5.77%
VEOLIA ENVIRONNEMENT 5.41%
EDISON INTERNATIONAL 4.45%
IBERDROLA SA 4.19%
ENEL SPA 3.92%
NATIONAL GRID PLC 3.86%
RWE AG 3.80%
CALPINE CORP 3.78%
NRG ENERGY INC 3.54%
AMEREN CORPORATION 3.24%
SOUTHERN CO/THE 2.42%
UNITED UTILITIES GROUP PLC 2.26%
COM HEM HOLDING AB 2.22%
SEMPRA ENERGY 1.56%
DUKE ENERGY CORP 1.53%
KDDI CORP 1.48%
PUBLIC SERVICE ENTERPRISE GP 1.45%
ELECTRIC POWER DEVELOPMENT C 1.36%
DOMINION ENERGY INC 1.12%
WEC ENERGY GROUP INC 0.99%
COMCAST CORP-CLASS A 0.73%
ENTERGY CORP 0.52%

Full Portfolio Holdings as of 06/30/17

EXELON CORP 8.42%
NEXTERA ENERGY INC 7.92%
P G & E CORP 7.06%
AMERICAN ELECTRIC POWER 6.66%
SSE PLC 5.91%
AMERICAN WATER WORKS CO INC 5.77%
VEOLIA ENVIRONNEMENT 5.41%
EDISON INTERNATIONAL 4.45%
IBERDROLA SA 4.19%
ENEL SPA 3.92%
NATIONAL GRID PLC 3.86%
RWE AG 3.80%
CALPINE CORP 3.78%
NRG ENERGY INC 3.54%
AMEREN CORPORATION 3.24%
SOUTHERN CO/THE 2.42%
UNITED UTILITIES GROUP PLC 2.26%
COM HEM HOLDING AB 2.22%
SEMPRA ENERGY 1.56%
DUKE ENERGY CORP 1.53%
KDDI CORP 1.48%
PUBLIC SERVICE ENTERPRISE GP 1.45%
ELECTRIC POWER DEVELOPMENT C 1.36%
DOMINION ENERGY INC 1.12%
WEC ENERGY GROUP INC 0.99%
COMCAST CORP-CLASS A 0.73%
ENTERGY CORP 0.52%
JPY/USD 08/16/2017 JPMCB 0.02%
CAD/USD 07/19/2017 JPMCB 0.01%
DKK/USD 09/20/2017 CITI 0.01%
EUR/USD 09/20/2017 BANKAM 0.01%
EUR/USD 09/20/2017 HSBCB 0.01%
EUR/USD 09/20/2017 JPMCB 0.01%
HKD/USD 08/16/2017 BCAP-FX 0.01%
JPY/USD 08/16/2017 GSFX 0.01%
AUD/USD 07/19/2017 BANKAM 0.00%
AUD/USD 07/19/2017 CITI 0.00%
AUD/USD 07/19/2017 UBS 0.00%
CAD/USD 07/19/2017 CITI 0.00%
EUR/USD 09/20/2017 CITI 0.00%
EUR/USD 09/20/2017 GSFX 0.00%
GBP/USD 09/20/2017 CITI 0.00%
GBP/USD 09/20/2017 UBS 0.00%
JPY/USD 08/16/2017 CITI 0.00%
NZD/USD 07/19/2017 CSI-FX 0.00%
POUND STERLING CALL ACCOUNT 0.00%
SEK/USD 09/20/2017 SSBT 0.00%
THE EURO EUR CALL ACCOUNT 0.00%
EUR/USD 09/20/2017 SSBT -0.01%
GBP/USD 09/20/2017 BANKAM -0.01%
GBP/USD 09/20/2017 JPMCB -0.01%
GBP/USD 09/20/2017 SSBT -0.01%
JAPANESE YEN CALL ACCOUNT -0.01%
SEK/USD 09/20/2017 JPMCB -0.02%

Prior top 10 holdings

Top 10 holdings as of 09/30/17
1: Exelon Corp 8.56%
2: Nextera Energy 8.06%
3: Pg&E Corp 7.05%
4: American Electric Power 6.56%
5: American Water Works 5.83%
6: Veolia Environnement 5.77%
7: Nrg Energy 4.59%
8: Uniper 4.48%
9: Southern The 4.42%
10: Enel Spa 4.28%
Holdings represent 59.60% of portfolio
Top 10 holdings as of 08/31/17
1: Exelon Corp 8.37%
2: Nextera Energy 8.05%
3: Pg&E Corp 7.09%
4: American Electric Power 6.69%
5: Veolia Environnement 5.69%
6: American Water Works 5.67%
7: Uniper 4.95%
8: Nrg Energy 4.35%
9: Edison International 4.32%
10: Enel Spa 4.19%
Holdings represent 59.37% of portfolio
Top 10 holdings as of 07/31/17
1: Exelon Corp 8.64%
2: Nextera Energy 7.97%
3: Pg&E Corp 6.95%
4: American Electric Power 6.53%
5: American Water Works 5.80%
6: Veolia Environnement 5.58%
7: Nrg Energy 4.38%
8: Edison International 4.32%
9: Uniper 4.18%
10: Sse 4.07%
Holdings represent 58.42% of portfolio
Top 10 holdings as of 06/30/17
1: Exelon Corp 8.42%
2: Nextera Energy 7.92%
3: Pg&E Corp 7.06%
4: American Electric Power 6.66%
5: Sse 5.91%
6: American Water Works 5.77%
7: Veolia Environnement 5.41%
8: Edison International 4.45%
9: Iberdrola 4.19%
10: Enel Spa 3.92%
Holdings represent 59.71% of portfolio

Portfolio Composition as of 09/30/17

Common stock 98.71%
Cash and net other assets 1.29%

Portfolio allocations vary over time. The fund concentrates its investments in one region or in one sector and involves more risk than a fund that invests more broadly. 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.

Top Industry Sectors as of 09/30/17

Electric Utilities 55.91%
Multi-Utilities 18.85%
Independent Power and Renewable Electricity Producers 10.41%
Water Utilities 8.07%
Diversified Telecommunication Services 2.23%
Oil, Gas & Consumable Fuels 1.80%
Wireless Telecommunication Services 1.44%
Cash and net other assets 1.29%

Country Allocation as of 09/30/17

United States 64.84%
United Kingdom 10.32%
France 5.77%
Germany 4.48%
Italy 4.28%
Spain 4.00%
Japan 2.79%
Sweden 2.23%
Cash and net other assets 1.29%

Expenses

Sales Charges/Fees

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

The fund concentrates its investments in one region or in one sector and involves more risk than a fund that invests more broadly. 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%