Putnam Allstate Advisor Preferred

George Putnam Balanced Fund Subaccount

The subaccount seeks to provide a balanced investment composed of a well diversified portfolio of stocks and bonds which produce both capital growth and current income.

Fund description

The subaccount seeks its dual objectives of capital growth and current income by investing in a combination of value stocks and fixed-income securities. The equity portion targets stocks of large companies that are currently undervalued and undergoing positive changes. The fixed-income portion includes government, corporate, and mortgage-backed securities. The subaccount typically has a 60%-70% allocation to stocks and a 30%-40% position in bonds.

Sales story

A prudent balance of stocks and bonds A balanced approach: The fund seeks conservative growth plus income through a mix of roughly 60% stocks and 40% bonds.Seeking reduced volatility: The fund's focus on undervalued stocks and primarily high-quality bonds is designed to reduce volatility for conservative and income-oriented investors.A rigorous process: The fund's experienced portfolio managers use rigorous fundamental investment research to find opportunities and manage risk.

Management team

Daily pricing as of 09/17/19

with optional enhanced death benefits
Unit Value $18.963981 $18.412224
Unit Value Change 0.029505 0.028571

Lipper ranking ‡ as of 08/31/19

Category: BALANCED FUNDS

  Percentile ranking Rank/Funds in category
10 yrs. 15% 17/117
1 yr. 8% 12/156
3 yrs. 7% 9/137
5 yrs. 10% 13/131

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 use of derivatives involves additional risks, such as the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations.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 08/31/19

Fiscal Year End December
Asset Class Putnam Allstate Advisor Preferred
Subaccount Status Open to new investors
Number of issues 417
Turnover (fiscal year end) 264%
Net Assets $173M
Inception Date 05/01/98

Performance

Performance as of 06/30/19

Annualized Performance Last Quarter Year
to Date
1 yr. 3 yrs. 5 yrs. 10 yrs. Life of
subaccount
Restated performance
Unit Value 4.28% 14.05% 8.22% 8.53% 5.57% 8.29% 2.96%
Standardized 2.28% 12.05% 6.22% 8.53% 5.57% 8.29% 2.96%
With optional enhanced death benefit
Unit Value 4.24% 13.96% 8.05% 8.37% 5.42% 8.13% 2.80%
Standardized 2.24% 11.96% 6.05% 8.37% 5.42% 8.13% 2.80%
Actual performance
Unit Value 4.28% 14.05% 8.22% 8.53% 5.57% 8.29% 3.29%
Standardized 2.28% 12.05% 6.22% 8.53% 5.57% 8.29% 3.29%
With optional enhanced death benefit
Unit Value 4.24% 13.96% 8.05% 8.37% 5.42% 8.13% 2.55%
Standardized 2.24% 11.96% 6.05% 8.37% 5.42% 8.13% 2.55%

Annual Performance at NAV

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
23.55% 9.00% 1.08% 10.67% 16.15% 8.85% -2.76% 6.23% 13.19% -4.75%
With optional enhanced death benefit
23.37% 8.83% 0.92% 10.50% 15.97% 8.69% -2.91% 6.07% 13.02% -4.89%

Restated performance

Monthly as of 08/31/19

Unit Value -0.46%
Standardized -2.45%

YTD as of 09/17/19

Unit Value 16.04%
Standardized 14.04%

With optional enhanced death benefit

Monthly as of 08/31/19

Unit Value -0.47%
Standardized -2.46%

YTD as of 09/17/19

Unit Value 15.92%
Standardized 13.92%

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.

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 use of derivatives involves additional risks, such as the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations.

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

Avg. Eff. Maturity 7.78
Avg. Price --
Avg. Eff. Duration 5.46
Avg. Coupon --
Avg. Yield to Maturity --
Alpha (%) 1.23
Beta 0.62
R Squared 0.95
Standard Deviation (3 yrs.) 7.59

Maturity Details

0 to 1 yr. 3.35%
1 to 5 yrs. 56.34%
5 to 10 yrs. 21.27%
10 to 15 yrs. 2.27%
Over 15 yrs. 16.77%

Quality Ratings

AAA 60.52%
AA 2.95%
A 12.12%
BBB 19.33%
BB 1.96%
CCC and Below 0.03%
Not Rated 3.09%

Holdings

Top 10 holdings as of 08/31/19

Microsoft 2.70%
Fnma Fn30 Tba Umbs 04.0000 09/01/2049 2.40%
Us Treasury N/B 02.7500 08/15/2042 2.13%
Alphabet 2.01%
Us Treasury N/B 02.0000 02/15/2022 1.95%
Amazon 1.89%
Fnma Fn30 Tba Umbs 03.5000 09/01/2049 1.78%
Apple 1.64%
Us Treasury N/B 01.7500 06/30/2022 1.42%
Us Treasury N/B 02.2500 02/15/2021 1.33%
Top 10 holdings, total: 19.25%

Full Portfolio Holdings as of 06/30/19

MICROSOFT CORP 2.78%
AMAZON.COM INC 2.06%
US TREASURY N/B 02.7500 08/15/2042 1.91%
ALPHABET INC-CL A 1.91%
FNMA FN30 TBA UMBS 04.0000 08/01/2049 1.87%
APPLE INC 1.69%
US TREASURY N/B 02.2500 02/15/2021 1.39%
US TREASURY N/B 01.6250 10/31/2023 1.36%
FNMA FN30 BM5477 UMBS 04.5000 02/01/2049 1.27%
FACEBOOK INC-CLASS A 1.26%
PROCTER & GAMBLE CO/THE 1.24%
US TREASURY N/B 02.1250 12/31/2022 1.22%
BANK OF AMERICA CORP 1.22%
COCA-COLA CO/THE 1.10%
US TREASURY N/B 02.6250 06/15/2021 1.10%
HOME DEPOT INC 1.09%
US TREASURY N/B 01.8750 11/30/2021 1.09%
US TREASURY N/B 01.7500 06/30/2022 1.09%
US TREASURY N/B 02.0000 02/15/2022 1.09%
US TREASURY N/B 02.0000 11/30/2020 1.04%
US TREASURY N/B 03.0000 02/15/2047 1.03%
CITIGROUP INC 1.01%
FNMA FN40 BF0169 3.500000 01/01/2057 0.97%
VISA INC-CLASS A SHARES 0.87%
GENERAL MOTORS CO 0.82%
FIDELITY NATIONAL INFO SERV 0.80%
DXC TECHNOLOGY CO 0.80%
WALMART INC 0.80%
BP PLC 0.79%
MASTERCARD INC - A 0.78%
ASSURED GUARANTY LTD 0.75%
CIGNA CORP 0.75%
JOHNSON & JOHNSON 0.74%
CENOVUS ENERGY INC 0.74%
MERCK & CO. INC. 0.73%
NXP SEMICONDUCTORS NV 0.72%
HONEYWELL INTERNATIONAL INC 0.72%
ADOBE INC 0.67%
AMERICAN INTERNATIONAL GROUP 0.67%
GOLDMAN SACHS GROUP INC 0.66%
GNMA GII30 BI6858 04.5000 03/20/2049 0.64%
FNMA FN30 TBA UMBS 04.5000 07/01/2049 0.63%
PRUDENTIAL PLC 0.63%
FNMA FN30 TBA UMBS 04.0000 07/01/2049 0.62%
TEXAS INSTRUMENTS INC 0.62%
GNMA GII30 TBA 03.5000 07/01/2049 0.62%
FNMA FN30 TBA UMBS 03.5000 08/01/2049 0.62%
GNMA GII30 MA3802 03.0000 07/20/2046 0.60%
CHARTER COMMUNICATIONS INC-A 0.60%
NETFLIX INC 0.59%
AMERICAN ELECTRIC POWER 0.57%
ENTERPRISE PRODUCTS PARTNERS 0.57%
AT&T INC 0.57%
JPMORGAN CHASE & CO 0.57%
SALESFORCE.COM INC 0.57%
WALT DISNEY CO/THE 0.56%
PNC FINANCIAL SERVICES GROUP 0.55%
EXELON CORP 0.54%
UNITEDHEALTH GROUP INC 0.53%
DANAHER CORP 0.53%
EATON CORP PLC 0.51%
UNION PACIFIC CORP 0.51%
BOOKING HOLDINGS INC 0.50%
PFIZER INC 0.50%
GAMING AND LEISURE PROPERTIE 0.49%
SBA COMMUNICATIONS CORP 0.49%
LINDE PLC 0.48%
ON SEMICONDUCTOR CORP 0.48%
FIRST DATA CORP- CLASS A 0.47%
FNMA FN30 BC1155 UMBS 03.0000 06/01/2046 0.46%
THERMO FISHER SCIENTIFIC INC 0.46%
ABBOTT LABORATORIES 0.45%
SHERWIN-WILLIAMS CO/THE 0.43%
KKR & CO INC -A 0.41%
FREEPORT-MCMORAN INC 0.41%
FORTUNE BRANDS HOME & SECURI 0.40%
HILTON WORLDWIDE HOLDINGS IN 0.39%
E*TRADE FINANCIAL CORPORATION 0.39%
HERSHEY CO/THE 0.37%
NEXTERA ENERGY INC 0.36%
ACTIVISION BLIZZARD INC 0.36%
NIKE INC -CL B 0.36%
NETEASE INC-ADR 0.35%
DASSAULT SYSTEMES SA 0.34%
BLACKROCK INC 0.34%
ABBVIE INC 0.34%
BOEING CO/THE 0.33%
AMGEN INC 0.32%
WELLS FARGO & CO 0.32%
NORTHROP GRUMMAN CORP 0.32%
ELECTRONIC ARTS INC 0.32%
NRG ENERGY INC 0.32%
RAYMOND JAMES FINANCIAL INC 0.31%
JPMORGAN CHASE & CO 03.9640 11/15/2048 0.31%
YUM CHINA HOLDINGS INC 0.31%
BOSTON SCIENTIFIC CORP 0.31%
CHIPOTLE MEXICAN GRILL INC 0.30%
METLIFE CAP TRST IV P/P 144A 07.8750 12/15/2037 0.30%
GENERAL DYNAMICS CORP 0.30%
WYNN RESORTS LTD 0.30%
NORFOLK SOUTHERN CORP 0.30%
MCCORMICK & CO-NON VTG SHRS 0.29%
PEPSICO INC 0.29%
UNITED TECHNOLOGIES CORP 0.28%
ELI LILLY & CO 0.28%
CISCO SYSTEMS INC 0.27%
S&P500 EMINI FUT SEP19 ESU9 0.27%
INTERCONTINENTAL EXCHANGE IN 0.27%
COSTCO WHOLESALE CORP 0.26%
JOHNSON CONTROLS INTERNATION 0.24%
TYSON FOODS INC-CL A 0.24%
ANGLO AMER PLC 0.24%
SOUTHERN CO/THE 0.24%
VERTEX PHARMACEUTICALS INC 0.24%
BAXTER INTERNATIONAL INC 0.23%
UBS AG REGS 05.1250 05/15/2024 0.23%
VERIZON COMM 04.3290 09/21/2028 0.22%
CVS HEALTH CORP 0.22%
BRISTOL-MYERS SQUIBB CO 0.22%
STANLEY BLACK & DECKER INC 0.22%
STRYKER CORP 0.22%
UNITED RENTALS INC 0.21%
GENERAL ELECTRIC CO 0.21%
CIGNA CORP P/P 144A 03.7500 07/15/2023 0.20%
TJX COMPANIES INC 0.20%
ROPER TECHNOLOGIES INC 0.20%
TRANSDIGM GROUP INC 0.20%
ALLERGAN PLC 0.19%
HARTFORD FINL SVCS GRP 06.6250 03/30/2040 0.19%
BRISTOL-MYERS P/P 144A 03.4000 07/26/2029 0.19%
CITIGROUP INC 04.7500 05/18/2046 0.18%
COOPER COS INC/THE 0.18%
DEERE & CO 0.18%
ENCANA CORP 0.18%
MEDTRONIC PLC 0.18%
GNMA GII30 OBD1715 03.5000 11/20/2047 0.18%
AMEREN CORPORATION 0.17%
CREDIT SUISSE GRP AG P/P 144A 03.8690 01/12/2029 0.17%
METTLER-TOLEDO INTERNATIONAL 0.17%
SANTANDER UK PLC P/P 144A 05.0000 11/07/2023 0.17%
GNMA GII30 OBD1716 03.5000 11/20/2047 0.17%
3M CO 0.16%
BALL CORP 0.16%
GILEAD SCIENCES INC 0.16%
CIT GROUP INC. 05.2500 03/07/2025 0.16%
SALESFORCE.COM INC 03.7000 04/11/2028 0.16%
YELLOW CAKE PLC 144A 0.16%
BURLINGTON STORES INC 0.16%
CAIRN ENERGY PLC 0.16%
AIR CANADA 0.15%
DOW INC 0.15%
WEC ENERGY GROUP INC 04.6305 05/15/2067 0.15%
CARMAX INC 0.14%
ENERGY TRANSFER OPERATNG 06.6250 02/15/2028 0.14%
KOSMOS ENERGY LTD 0.14%
SUMMIT MATERIALS INC -CL A 0.14%
IDEXX LABORATORIES INC 0.14%
AON PLC USD 04.2500 12/12/2042 0.13%
BJ'S WHOLESALE CLUB HOLDINGS 0.13%
ING BANK NV P/P 144A 05.8000 09/25/2023 0.13%
BPCE SA P/P 144A 05.1500 07/21/2024 0.13%
INTERPUBLIC GROUP COS 04.6500 10/01/2028 0.13%
MSC 2012-C4 D P/P 144A 05.6003 03/15/2045 0.13%
DIAMOND 1 FIN/DIAM P/P 144A 06.0200 06/15/2026 0.13%
ELANCO ANIMAL HEALTH 04.9000 08/28/2028 0.13%
WILLIAMS COMPANIES INC 04.3000 03/04/2024 0.13%
ARAMARK 0.12%
COSTAR GROUP INC 0.12%
EDISON INTERNATIONAL 0.12%
ERAC USA FINANCE LLC P/P 144A 07.0000 10/15/2037 0.12%
UNITEDHEALTH GROUP INC 03.8500 06/15/2028 0.12%
ASHTEAD CAPITAL INC P/P 144A 04.3750 08/15/2027 0.12%
DIGITAL REALTY TRUST LP 04.4500 07/15/2028 0.12%
GOLDMAN SACHS GROUP INC 03.8500 01/26/2027 0.12%
AT&T INC 04.3500 03/01/2029 0.12%
BECTON DICKINSON AND CO 0.12%
WASTE CONNECTIONS INC 0.12%
GOLDMAN SACHS GROUP INC 04.2230 05/01/2029 0.12%
DUPONT DE NEMOURS INC 0.12%
BANK OF AMERICA CORP 06.1100 01/29/2037 0.12%
KEURIG DR PEPPER INC 04.5970 05/25/2028 0.12%
WESTROCK MWV LLC 08.2000 01/15/2030 0.11%
AT&T INC 04.1000 02/15/2028 0.11%
CF INDUSTRIES INC P/P 144A 04.5000 12/01/2026 0.11%
MGM RESORTS INTERNATIONAL 0.11%
MASS MUTUAL LIFE P/P 144A 08.8750 06/01/2039 0.11%
PRUDENTIAL FINANCIAL INC 05.2000 03/15/2044 0.11%
ADVANCE AUTO PARTS 0.11%
GLENCORE FUNDING LLC P/P 144A 04.6250 04/29/2024 0.11%
FIRSTENERGY TRANSMIS P/P 144A 05.4500 07/15/2044 0.10%
IHS MARKIT LTD P/P 144A 04.7500 02/15/2025 0.10%
APPLE INC 04.3750 05/13/2045 0.10%
BRDCOM CRP / FIN 03.8750 01/15/2027 0.10%
FISERV INC 04.2000 10/01/2028 0.10%
GSMS 2014-GC22 C 04.8475 06/10/2047 0.10%
NRG ENERGY INC P/P 144A 04.4500 06/15/2029 0.10%
WALT DISNEY COMP P/P 144A 07.7500 01/20/2024 0.10%
WESTLAKE CHEM CORP 03.6000 08/15/2026 0.10%
LEVI STRAUSS & CO- CLASS A 0.10%
TELEFONICA EMISIONES SAU USD 04.8950 03/06/2048 0.10%
EOG RESOURCES INC 04.1500 01/15/2026 0.10%
CVS PASS-THRU TRUST P/P 144A 07.5070 01/10/2032 0.09%
FEDEX CORP 0.09%
ORACLE CORP 02.6500 07/15/2026 0.09%
FAIRFAX FINL HLDGS USD 04.8500 04/17/2028 0.09%
SIRIUS XM RADIO INC P/P 144A 05.0000 08/01/2027 0.09%
STANDARD IND INC P/P 144A 05.0000 02/15/2027 0.09%
AMERICAN INTL GROUP 08.1750 05/15/2058 0.09%
MICROCHIP TECH INC 04.3330 06/01/2023 0.09%
ARCHER-DANIELS-MIDLAND CO 0.09%
AMAZON.COM INC 04.0500 08/22/2047 0.09%
FIDELITY NATL INFO SERV 03.7500 05/21/2029 0.08%
CROWN CASTLE INTL CORP 03.8000 02/15/2028 0.08%
DUKE ENERGY OHIO INC 03.6500 02/01/2029 0.08%
HILTON WORLDWIDE FIN LLC 04.8750 04/01/2027 0.08%
COMCAST CORP 03.1500 03/01/2026 0.08%
WESTERN DIGITAL CORP 04.7500 02/15/2026 0.08%
WASTE CONNECTIONS INC 03.5000 05/01/2029 0.08%
AVERY DENNISON CORP 0.08%
CONCHO RESOURCES INC 03.7500 10/01/2027 0.08%
NUTRIEN LTD. USD 04.2000 04/01/2029 0.08%
CHARTER COMM OPT LLC 06.4840 10/23/2045 0.08%
CGCMT 2014-GC21 C 04.7800 05/10/2047 0.08%
TRANSCANADA TRUST USD 05.3000 03/15/2077 0.08%
ECOLAB INC 03.2500 12/01/2027 0.08%
JOHNSON CONTROLS INTL PL 04.5000 02/15/2047 0.08%
OSHKOSH CORP 04.6000 05/15/2028 0.08%
LAMB WESTON HOLDINGS P/P 144A 04.8750 11/01/2026 0.08%
ALIMENTATION COUCHE-TARD 3.550000 07/26/2027 0.07%
JPMORGAN CHASE & CO 05.3000 12/29/2049 0.07%
AIR LEASE CORP 03.0000 09/15/2023 0.07%
WILLIS TOWERS WATSON PLC USD 05.7500 03/15/2021 0.07%
EQT CORP 03.9000 10/01/2027 0.07%
SABINE PASS LIQUEF 05.0000 03/15/2027 0.07%
WEYERHAEUSER CO 07.3750 03/15/2032 0.07%
SPRINT SPECTRUM P/P 144A 03.3600 09/20/2021 0.07%
SHIRE ACQ INV IE 03.2000 09/23/2026 0.07%
COMM 2013-CR13 AM 04.4490 11/10/2046 0.06%
NORTHROP GRUMMAN CORP 03.2500 01/15/2028 0.06%
WFRBS 2013-UBS1 AS 04.3060 03/15/2046 0.06%
ERAC USA FINANCE LLC P/P 144A 05.6250 03/15/2042 0.06%
L3 TECHNOLOGIES INC 03.8500 12/15/2026 0.06%
AMAZON.COM INC 03.1500 08/22/2027 0.06%
S&P GLOBAL INC 04.4000 02/15/2026 0.06%
EL PASO NATURAL GAS 08.3750 06/15/2032 0.06%
GNMA GII30 OBD1714 03.5000 11/20/2047 0.06%
CGCMT 2014-GC21 AS 04.0260 05/10/2047 0.06%
EQUINIX INC 05.3750 05/15/2027 0.06%
EQUINOR ASA USD 05.1000 08/17/2040 0.06%
BANK OF AMERICA CORP 05.1250 06/17/2049 0.06%
BP CAP MARKETS AMERICA 03.9370 09/21/2028 0.06%
CANTOR FITZGERALD LP P/P 144A 06.5000 06/17/2022 0.06%
W.R. GRACE & CO 0.06%
MARSH & MCLENNAN COS INC 04.3750 03/15/2029 0.06%
AUTONATION INC. 05.5000 02/01/2020 0.06%
BERKSHIRE HATHAWAY FIN 04.3000 05/15/2043 0.06%
LEAR CORP 03.8000 09/15/2027 0.06%
AMGEN INC 04.6630 06/15/2051 0.06%
CITIGROUP INC 04.4500 09/29/2027 0.06%
COMCAST CORP 03.9990 11/01/2049 0.06%
SHERWIN-WILLIAMS CO 03.4500 06/01/2027 0.05%
ZOETIS INC 03.9000 08/20/2028 0.05%
FISERV INC 03.5000 07/01/2029 0.05%
INTL FLAVOR & FRAGRANCES 04.4500 09/26/2028 0.05%
LEGRAND FRANCE USD 08.5000 02/15/2025 0.05%
N TX HWY-TXB-B 06.7180 01/01/2049 0.05%
PENSKE TRUCK LE P/P 144A 03.4000 11/15/2026 0.05%
VODAFONE GROUP PLC USD 04.3750 05/30/2028 0.05%
ALLY FINANCIAL INC 05.7500 11/20/2025 0.05%
BMW US CAPITAL LLC P/P 144A 03.9500 08/14/2028 0.05%
NRG P/P 144A 03.7500 06/15/2024 0.05%
VIDEOTRON LTD / LTEE P/P 144A 05.1250 04/15/2027 0.05%
ALPHABET INC 01.9980 08/15/2026 0.05%
BP CAP MARKETS AMERICA 03.1190 05/04/2026 0.05%
APTARGROUP INC 0.05%
OMEGA HLTHCARE INVESTORS 04.9500 04/01/2024 0.05%
TORONTO-DOMINION BANK USD 03.6250 09/15/2031 0.05%
CBS CORP 04.6000 01/15/2045 0.05%
CHARTER COMM OPT LLC 05.3750 05/01/2047 0.05%
ICU MEDICAL INC 0.05%
KINDER MORGAN INC 03.1500 01/15/2023 0.05%
MICROSOFT CORP 03.7000 08/08/2046 0.05%
SHIRE ACQ INV IRELAND DA USD 02.8750 09/23/2023 0.05%
WFRBS 2011-C3 D P/P 144A 05.8555 03/15/2044 0.05%
BECTON DICKINSON AND CO 03.7000 06/06/2027 0.04%
CELANESE US HOLDINGS LLC 04.6250 11/15/2022 0.04%
COX COMM INC P/P 144A 03.5000 08/15/2027 0.04%
HCA INC 05.2500 06/15/2026 0.04%
L3 TECHNOLOGIES INC 04.4000 06/15/2028 0.04%
AMERICAN ELECTRIC POWER 04.3000 12/01/2028 0.04%
APPALACHIAN POWER CO 05.8000 10/01/2035 0.04%
CHENIERE CORP CHRIST 05.1250 06/30/2027 0.04%
ONEAMERICA FINL P/P 144A 07.0000 10/15/2033 0.04%
WELLS FARGO & COMPANY 05.8750 12/29/2049 0.04%
IHS MARKIT LTD P/P 144A 04.0000 03/01/2026 0.04%
AMERICAN TOWER CORP 03.5500 07/15/2027 0.04%
CROWN CASTLE INTL CORP 03.6500 09/01/2027 0.04%
ENTERPRISE PRODUCTS OPER 04.2500 02/15/2048 0.04%
ONCOR ELECTRIC DELI 05.7500 03/15/2029 0.04%
VISTRA OPERATION P/P 144A 03.5500 07/15/2024 0.04%
CAPITAL ONE FINANCIAL CO 04.2000 10/29/2025 0.04%
HCA INC 04.1250 06/15/2029 0.04%
MICROSOFT CORP 02.4000 08/08/2026 0.04%
TARGA RESOURCES PART 05.0000 01/15/2028 0.04%
AES CORP/THE 05.1250 09/01/2027 0.04%
CBS CORP 04.2000 06/01/2029 0.04%
FIDELITY NATIONAL INFORM 04.2500 05/15/2028 0.04%
HOSPITALITY PROP TRUST 04.3750 02/15/2030 0.04%
KKR GROUP FINANCE CO P/P 144A 06.3750 09/29/2020 0.04%
WALGREENS BOOTS ALLIANCE 03.4500 06/01/2026 0.04%
DOLLAR GENERAL CORP 03.2500 04/15/2023 0.04%
FNMA FN30 734836 05.0000 08/01/2033 0.04%
AMERICAN TOWER CORP 03.3750 10/15/2026 0.04%
APOLLO GLOBAL MANAGEMENT - A 0.04%
BMW US CAPITAL LLC P/P 144A 02.8000 04/11/2026 0.04%
CBRE SERVICES INC 04.8750 03/01/2026 0.04%
CHARTER COMM OPT LLC 04.9080 07/23/2025 0.04%
GLENCORE FUNDING LLC P/P 144A 04.0000 04/16/2025 0.04%
FOX CORP P/P 144A 04.0300 01/25/2024 0.04%
OPORTUN FIN CORP P/P SERIES H PFD 0.04%
VISTRA OPERATION P/P 144A 04.3000 07/15/2029 0.04%
TEACHERS INSUR & ANN P/P 144A 06.8500 12/16/2039 0.03%
BMIR 2017-1 M1 P/P 144A 04.1044 10/25/2027 0.03%
ANHEUSER-BUSCH INBEV WOR 04.7500 01/23/2029 0.03%
FNMA FN30 995023 05.5000 08/01/2037 0.03%
QVC INC 04.8500 04/01/2024 0.03%
OH UNIV-TXB-C-BABS 04.9100 06/01/2040 0.03%
ANHEUSER-BUSCH INBEV WOR 05.5500 01/23/2049 0.03%
GENERAL MOTORS FINL CO 04.3000 07/13/2025 0.03%
PRUDENTIAL FINANCIAL INC 06.6250 06/21/2040 0.03%
BANK OF MONTREAL USD 03.8030 12/15/2032 0.03%
BMW US CAPITAL LLC P/P 144A 03.4000 08/13/2021 0.03%
CBS CORP 02.9000 01/15/2027 0.03%
CELANESE US HOLDINGS LLC 03.5000 05/08/2024 0.03%
COMM 2014-UBS6 C 04.6048 12/10/2047 0.03%
ENBRIDGE INC USD 04.2500 12/01/2026 0.03%
NEXTERA ENERGY CAPITAL 04.8000 12/01/2077 0.03%
CA TXB-VAR PURP 07.5000 04/01/2034 0.03%
FNMA FN30 555591 05.5000 07/01/2033 0.03%
BRIGHAM MINERALS INC-CL A 0.03%
CON EDISON CO OF NY INC 04.2000 03/15/2042 0.03%
ENERGY TRANSFER OPERATNG 05.2000 02/01/2022 0.03%
FAIRFAX US INC P/P 144A 04.8750 08/13/2024 0.03%
OMNICOM GP/OMNICOM CAP 03.6000 04/15/2026 0.03%
VMWARE INC 03.9000 08/21/2027 0.03%
AIR LEASE CORP 04.6250 10/01/2028 0.02%
ANHEUSER-BUSCH INBEV WOR 04.1500 01/23/2025 0.02%
KINDER MORGAN ENER PART 03.5000 03/01/2021 0.02%
CVS HEALTH CORP 04.7800 03/25/2038 0.02%
GENERAL MOTORS FINL CO 04.0000 10/06/2026 0.02%
ANTHEM INC 04.6250 05/15/2042 0.02%
HCA INC 05.5000 06/15/2047 0.02%
NEUBERGER BERMAN GRP P/P 144A 04.8750 04/15/2045 0.02%
ROGERS COMMUNICATIONS IN USD 04.5000 03/15/2043 0.02%
ROYAL BANK OF CANADA USD 04.6500 01/27/2026 0.02%
AVIATION CAPITAL GRP P/P 144A 07.1250 10/15/2020 0.02%
COMCAST CORP 06.5000 11/15/2035 0.02%
IPALCO ENTPRS IN 03.7000 09/01/2024 0.02%
OPORTUN FIN G-1 PFD CV P/P 0.02%
PETROLEOS MEXICANOS USD 04.5000 01/23/2026 0.02%
BANK OF AMERICA CORP 06.1000 12/29/2049 0.02%
DIAMOND 1 FIN/DIAMON P/P 144A 08.3500 07/15/2046 0.02%
ENERGY TRAN PTNR 07.6000 02/01/2024 0.02%
FNMA FN30 995018 05.5000 06/01/2038 0.02%
HOSPITALITY PROPERTIES T 04.5000 03/15/2025 0.02%
AMGEN INC 02.6000 08/19/2026 0.02%
CROWN CASTLE INTL CORP 04.7500 05/15/2047 0.02%
OPORTUN FIN CORP P/P 0.02%
CC HLDG GS V LLC/CRO 03.8490 04/15/2023 0.02%
CNH/USD 08/21/2019 HSBCB 0.02%
COMCAST CABLE COMMUNICAT 09.4550 11/15/2022 0.02%
FNMA FN30 889982 05.5000 11/01/2038 0.02%
MARATHON PETRO CORP 06.5000 03/01/2041 0.02%
WILLIAMS COMPANIES INC 03.6000 03/15/2022 0.02%
CNO FINANCIAL GROUP INC 05.2500 05/30/2025 0.02%
SERVICE CORPORATION INTL 04.6250 12/15/2027 0.02%
FIFTH THIRD BANCORP 05.1000 12/29/2049 0.02%
JPMORGAN CHASE & CO 06.1000 02/01/2049 0.02%
OPORTUN FIN F-1 PFD CV P/P 0.02%
SUNOCO LOGISTICS PARTNER 05.9500 12/01/2025 0.02%
AUTONATION INC 04.5000 10/01/2025 0.02%
CBRE SERVICES INC 05.2500 03/15/2025 0.02%
KKR GR FIN CO P/P 144A 03.7500 07/01/2029 0.02%
SABINE PASS LIQUEFACTION 04.2000 03/15/2028 0.02%
ENERGY TRANSFER OPERATNG 06.2500 04/15/2049 0.01%
KEURIG DR PEPPER INC 04.4170 05/25/2025 0.01%
AIR LEASE CORP 03.6250 04/01/2027 0.01%
HILTON DOMESTIC OPERATIN 04.2500 09/01/2024 0.01%
ANHEUSER-BUSCH CO/IN 03.6500 02/01/2026 0.01%
CBS CORP 04.0000 01/15/2026 0.01%
COMMONWEALTH EDISON CO 05.8750 02/01/2033 0.01%
KINDER MORGAN ENER PART 05.4000 09/01/2044 0.01%
TIAAC 2003-1A E 144A 08.0000 12/28/2038 0.01%
PRUDENTIAL FINANCIAL INC 05.6250 06/15/2043 0.01%
INTERNATIONAL PAPER CO 08.7000 06/15/2038 0.01%
ROGERS COMMUNICATIONS IN USD 08.7500 05/01/2032 0.01%
WESTLAKE CHEMICAL CORP 04.3750 11/15/2047 0.01%
AT&T INC 04.7500 05/15/2046 0.01%
CVS PASS-THROUGH P/P 144A 04.7040 01/10/2036 0.01%
MIDAMERICAN FUNDING LLC 06.9270 03/01/2029 0.01%
WESTROCK MWV LLC 07.9500 02/15/2031 0.01%
HCA INC 05.0000 03/15/2024 0.01%
BGC PARTNERS INC 05.1250 05/27/2021 0.01%
CITIGROUP INC 03.6680 07/24/2028 0.01%
CROWN CASTLE INTL CORP 04.8750 04/15/2022 0.01%
OPORTUN FIN F PFD CV P/P 0.01%
FIDELITY NATIONAL INFORM 03.0000 08/15/2026 0.00%
FIRSTENERGY CORP 04.8500 07/15/2047 0.00%
OPORTUN FIN D-1 PFD CV P/P 0.00%
ALLERGAN FUNDING SCS USD 03.4500 03/15/2022 0.00%
FIRSTENERGY CORP 03.9000 07/15/2027 0.00%
GLENCORE FIN CANADA P/P 144A 06.0000 11/15/2041 0.00%
OPORTUN FIN C-1 PFD CV P/P 0.00%
OPORTUN FIN E-1 PFD CV P/P 0.00%
OPORTUN FIN B-1 PFD CV P/P 0.00%
FPLUS 1997-3 B1 07.7900 11/10/2023 0.00%
OPORTUN FIN A-1 PFD CV P/P 0.00%
GBP/USD 09/18/2019 BANKAM -0.00%
GBP/USD 09/18/2019 BCAP-FX -0.00%
GBP/USD 09/18/2019 CITI -0.00%
GBP/USD 09/18/2019 GSFX -0.00%
CAD/USD 07/17/2019 GSFX -0.00%
CAD/USD 07/17/2019 BCAP-FX -0.00%
CAD/USD 07/17/2019 CITI -0.00%
CAD/USD 07/17/2019 JPMCB -0.00%
CAD/USD 07/17/2019 SSBT -0.00%
EUR/USD 09/18/2019 CITI -0.00%

Prior top 10 holdings

Top 10 holdings as of 08/31/19
1: Microsoft 2.70%
2: Fnma Fn30 Tba Umbs 04.0000 09/01/2049 2.40%
3: Us Treasury N/B 02.7500 08/15/2042 2.13%
4: Alphabet 2.01%
5: Us Treasury N/B 02.0000 02/15/2022 1.95%
6: Amazon 1.89%
7: Fnma Fn30 Tba Umbs 03.5000 09/01/2049 1.78%
8: Apple 1.64%
9: Us Treasury N/B 01.7500 06/30/2022 1.42%
10: Us Treasury N/B 02.2500 02/15/2021 1.33%
Holdings represent 19.25% of portfolio
Top 10 holdings as of 07/31/19
1: Microsoft 2.77%
2: Fnma Fn30 Tba Umbs 04.0000 08/01/2049 2.45%
3: Alphabet 2.10%
4: Amazon 2.04%
5: Us Treasury N/B 02.7500 08/15/2042 2.01%
6: Apple 1.78%
7: Us Treasury N/B 02.2500 02/15/2021 1.38%
8: Us Treasury N/B 01.6250 10/31/2023 1.33%
9: Facebook 1.32%
10: Procter & Gamble 1.29%
Holdings represent 18.47% of portfolio
Top 10 holdings as of 06/30/19
1: Microsoft 2.78%
2: Amazon 2.06%
3: Us Treasury N/B 02.7500 08/15/2042 2.05%
4: Alphabet 1.91%
5: Fnma Fn30 Tba Umbs 04.0000 08/01/2049 1.87%
6: Apple 1.69%
7: Us Treasury N/B 02.2500 02/15/2021 1.40%
8: Us Treasury N/B 01.6250 10/31/2023 1.36%
9: Fnma Fn30 Bm5477 Umbs 04.5000 02/01/2049 1.27%
10: Facebook 1.26%
Holdings represent 17.65% of portfolio
Top 10 holdings as of 05/31/19
1: Microsoft 2.71%
2: Alphabet 2.05%
3: Amazon 2.04%
4: Us Treasury N/B 02.7500 08/15/2042 1.83%
5: Apple 1.58%
6: Us Treasury N/B 02.2500 02/15/2021 1.48%
7: Us Treasury N/B 01.6250 10/31/2023 1.42%
8: Fnma Fn30 Bm5477 04.5000 02/01/2049 1.35%
9: Fnma Fn30 Tba Umbs 04.0000 06/01/2049 1.32%
10: Fnma Fn30 Tba Umbs 04.0000 07/01/2049 1.32%
Holdings represent 17.10% of portfolio

Portfolio Composition as of 08/31/19

Common stock 58.59%
Treasury 14.31%
Corporate bonds and notes 13.59%
Agency pass-through 8.71%
Cash and net other assets 4.10%
Commercial MBS 0.55%
Municipal bonds 0.11%
Residential MBS (non-agency) 0.04%

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 use of derivatives involves additional risks, such as the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations.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

Information technology 18.26%
Health care 13.43%
Financials 12.54%
Consumer discretionary 11.13%
Communication services 10.90%
Industrials 8.97%
Consumer staples 7.55%
Cash and net other assets 4.10%
Utilities 4.03%
 
Other
9.09%
Energy 3.82%
Materials 3.47%
Real estate 1.80%

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 use of derivatives involves additional risks, such as the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations.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%