Putnam Allstate Advisor Preferred

Putnam Equity Income Subaccount

The subaccount seeks current income. Capital growth is a secondary objective when consistent with seeking current income.

Fund description

The subaccount employs Putnam's value strategy to invest primarily in stocks of large and mid-sized companies that are undervalued and poised for positive change. The subaccount favors dividend-paying companies and is broadly diversified across market sectors. To help manage volatility and increase current income, up to 20% of the portfolio can be invested in high quality, fixed-income securities.

Sales story

Seeking to harness the power of stock dividends Dividend-paying companies: Dividends offer evidence of a company's commitment to creating shareholder value and are typically paid by more established companies.A large-value focus: The fund focuses on large companies whose stocks are priced below their long-term potential, and where there may be a catalyst for positive change.A rigorous process: The fund's experienced manager combines quantitative research with rigorous fundamental investment research to find opportunities and manage risk.

Management team

Daily pricing as of 06/20/18

with optional enhanced death benefits
Unit Value $32.44798 $31.708044
Unit Value Change 0.074667 0.072835

Lipper ranking ‡ as of 05/31/18

Category: Equity Income Funds

  Percentile ranking Rank/Funds in category
10 yrs. 4% 2/53
1 yr. 4% 3/75
3 yrs. 28% 20/73
5 yrs. 18% 11/63

Mutual funds that invest in government securities are not guaranteed. Mortgage-backed securities are subject to prepayment risk. Capital gains, if any, are taxable for federal and, in most cases, state purposes. For some investors, investment income may be subject to the federal alternative minimum tax. Income from federally exempt funds may be subject to state and local taxes. 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.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 05/31/18

Fiscal Year End December
Asset Class Putnam Allstate Advisor Preferred
Subaccount Status Open to new investors
Number of issues 111
Turnover (fiscal year end) 12%
Net Assets $1,500M
Inception Date 05/01/03

Performance

Performance as of 03/31/18

Annualized Performance Last Quarter Year
to Date
1 yr. 3 yrs. 5 yrs. 10 yrs. Life of
subaccount
Restated performance
Unit Value -2.48% -2.48% 9.30% 6.38% 9.47% 7.89% 8.00%
Standardized -4.43% -4.43% 7.30% 6.38% 9.47% 7.89% 8.00%
With optional enhanced death benefit
Unit Value -2.51% -2.51% 9.14% 6.22% 9.30% 7.73% 7.84%
Standardized -4.46% -4.46% 7.14% 6.22% 9.30% 7.73% 7.84%
Actual performance
Unit Value -2.48% -2.48% 9.30% 6.38% 9.47% 7.89% 8.00%
Standardized -4.43% -4.43% 7.30% 6.38% 9.47% 7.89% 8.00%
With optional enhanced death benefit
Unit Value -- -- -- -- -- -- --
Standardized -- -- -- -- -- -- --

Annual Performance at NAV

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
-32.28% 25.35% 10.75% 0.24% 17.33% 30.23% 10.80% -4.64% 11.77% 16.82%
With optional enhanced death benefit
-32.38% 25.16% 10.58% 0.09% 17.15% 30.03% 10.63% -4.79% 11.60% 16.64%

Restated performance

Monthly as of 05/31/18

Unit Value 1.02%
Standardized -0.98%

YTD as of 06/20/18

Unit Value 0.41%
Standardized -1.59%

With optional enhanced death benefit

Monthly as of 05/31/18

Unit Value 1.01%
Standardized -0.99%

YTD as of 06/20/18

Unit Value 0.34%
Standardized -1.66%

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.

Mutual funds that invest in government securities are not guaranteed. Mortgage-backed securities are subject to prepayment risk. Capital gains, if any, are taxable for federal and, in most cases, state purposes. For some investors, investment income may be subject to the federal alternative minimum tax. Income from federally exempt funds may be subject to state and local taxes. 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.

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 05/31/18

Alpha (%) 1.11
Beta 0.95
R Squared 0.96
Standard Deviation (3 yrs.) 9.97

Holdings

Top 10 holdings as of 05/31/18

JPMorgan Chase 4.02%
Microsoft Corp 3.59%
Bank Of America Corp 3.42%
Citigroup 2.97%
Northrop Grumman Corp 2.55%
Apple 2.08%
Marathon Oil Corp 1.94%
ConocoPhillips 1.92%
Exxon Mobil Corp 1.91%
Johnson Johnson 1.88%
Top 10 holdings, total: 26.28%

Equity Holdings as of 03/31/18

JPMORGAN CHASE & CO 4.26%
BANK OF AMERICA CORP 3.66%
MICROSOFT CORP 3.38%
CITIGROUP INC 3.11%
NORTHROP GRUMMAN CORP 2.76%
JOHNSON & JOHNSON 2.04%
APPLE INC 1.94%
EXXON MOBIL CORP 1.80%
CONOCOPHILLIPS 1.73%
BECTON DICKINSON AND CO 1.67%
DOWDUPONT INC 1.62%
AT&T INC 1.55%
RAYTHEON COMPANY 1.55%
MARATHON OIL CORP 1.49%
ALCOA CORP 1.43%
AMERICAN INTERNATIONAL GROUP 1.37%
SCHWAB (CHARLES) CORP 1.34%
CIGNA CORP 1.31%
DXC TECHNOLOGY CO 1.31%
VALERO ENERGY CORP 1.30%
ASSURED GUARANTY LTD 1.27%
DANAHER CORP 1.27%
REGIONS FINANCIAL CORP 1.27%
GILEAD SCIENCES INC 1.23%
UNION PACIFIC CORP 1.19%
AMGEN INC 1.18%
COMCAST CORP-CLASS A 1.18%
STATE STREET CORP 1.18%
CISCO SYSTEMS INC 1.17%
GOLDMAN SACHS GROUP INC 1.15%
AMERICAN TOWER CORP 1.14%
WELLS FARGO & CO 1.14%
DR PEPPER SNAPPLE GROUP INC 1.11%
MERCK & CO. INC. 1.11%
MOLSON COORS BREWING CO -B 1.07%
ASTRAZENECA PLC-SPONS ADR 1.05%
PEPSICO INC 1.05%
JOHNSON CONTROLS INTERNATION 1.04%
KROGER CO 1.04%
O'REILLY AUTOMOTIVE INC 1.00%
RADIAN GROUP INC 0.99%
KIMBERLY-CLARK CORP 0.97%
TOTAL SA 0.97%
EOG RESOURCES INC 0.95%
GAMING AND LEISURE PROPERTIE 0.95%
ANADARKO PETROLEUM CORP 0.93%
INTEL CORP 0.92%
GENERAL MOTORS CO 0.91%
HILTON WORLDWIDE HOLDINGS IN 0.91%
SOUTHWEST AIRLINES CO 0.91%
CHARTER COMMUNICATIONS INC-A 0.90%
EXELON CORP 0.90%
FIDELITY NATIONAL INFO SERV 0.89%
APTIV PLC 0.87%
ELI LILLY & CO 0.85%
HARTFORD FINANCIAL SVCS GRP 0.85%
KKR & CO LP 0.85%
PFIZER INC 0.85%
TEXAS INSTRUMENTS INC 0.85%
HALLIBURTON CO 0.82%
EDISON INTERNATIONAL 0.80%
HOME DEPOT INC 0.77%
NRG ENERGY INC 0.77%
BOSTON PROPERTIES INC 0.76%
AIR PRODUCTS & CHEMICALS INC 0.75%
CAPITAL ONE FINANCIAL CORP 0.73%
HONEYWELL INTERNATIONAL INC 0.70%
KEYCORP 0.69%
BALL CORP 0.67%
KRAFT HEINZ CO/THE 0.66%
SEALED AIR CORP 0.64%
AMERICAN ELECTRIC POWER 0.62%
CF INDUSTRIES HOLDINGS INC 0.62%
SUNCOR ENERGY INC 0.59%
KINDER MORGAN INC 0.54%
MANDATORY EXCH TRUST P/P 144A 05.7500 CV PFD 0.54%
PULTEGROUP INC 0.54%
VERIZON COMMUNICATIONS INC 0.54%
CUMMINS INC 0.51%
AIRBUS SE 0.50%
EMERSON ELECTRIC CO 0.50%
NEXTERA ENERGY INC 0.50%
VODAFONE GROUP PLC-SP ADR 0.50%
WALGREENS BOOTS ALLIANCE INC 0.47%
P G & E CORP 0.46%
COTY INC-CL A 0.39%
INVESCO LTD 0.39%
ON SEMICONDUCTOR CORP 0.39%
GENERAL ELECTRIC CO 0.34%
PIONEER NAT RES CO 0.34%
MFA FINANCIAL INC 0.33%
QUALCOMM INC 0.29%
DISH NETWORK CORP-A 0.20%
DELPHI TECHNOLOGIES PLC 0.16%
OPORTUN FIN CORP P/P SERIES H PFD 0.04%
GLOBAL FASHION GRP 0.01%
GLOBAL FASHION GRP P/P 0.01%
OPORTUN FIN CORP P/P 0.01%
OPORTUN FIN F-1 PFD CV P/P 0.01%
OPORTUN FIN G-1 PFD CV P/P 0.01%
HC BRILLANT SERVICES GMBH P/P 0.00%
NEW BIGFOOT OTHER ASSETS GMBH P/P 0.00%
NEW MIDDLE EAST OTHER ASSETS GMBH 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 C-1 PFD CV P/P 0.00%
OPORTUN FIN D-1 PFD CV P/P 0.00%
OPORTUN FIN E-1 PFD CV P/P 0.00%
OPORTUN FIN F PFD CV P/P 0.00%

Full Portfolio Holdings as of 03/31/18

JPMORGAN CHASE & CO 4.26%
BANK OF AMERICA CORP 3.66%
MICROSOFT CORP 3.38%
CITIGROUP INC 3.11%
NORTHROP GRUMMAN CORP 2.76%
JOHNSON & JOHNSON 2.04%
APPLE INC 1.94%
EXXON MOBIL CORP 1.80%
CONOCOPHILLIPS 1.73%
BECTON DICKINSON AND CO 1.67%
DOWDUPONT INC 1.62%
AT&T INC 1.55%
RAYTHEON COMPANY 1.55%
MARATHON OIL CORP 1.49%
ALCOA CORP 1.43%
AMERICAN INTERNATIONAL GROUP 1.37%
SCHWAB (CHARLES) CORP 1.34%
CIGNA CORP 1.31%
DXC TECHNOLOGY CO 1.31%
VALERO ENERGY CORP 1.30%
ASSURED GUARANTY LTD 1.27%
DANAHER CORP 1.27%
REGIONS FINANCIAL CORP 1.27%
GILEAD SCIENCES INC 1.23%
UNION PACIFIC CORP 1.19%
AMGEN INC 1.18%
COMCAST CORP-CLASS A 1.18%
STATE STREET CORP 1.18%
CISCO SYSTEMS INC 1.17%
GOLDMAN SACHS GROUP INC 1.15%
AMERICAN TOWER CORP 1.14%
WELLS FARGO & CO 1.14%
DR PEPPER SNAPPLE GROUP INC 1.11%
MERCK & CO. INC. 1.11%
MOLSON COORS BREWING CO -B 1.07%
ASTRAZENECA PLC-SPONS ADR 1.05%
PEPSICO INC 1.05%
JOHNSON CONTROLS INTERNATION 1.04%
KROGER CO 1.04%
O'REILLY AUTOMOTIVE INC 1.00%
RADIAN GROUP INC 0.99%
KIMBERLY-CLARK CORP 0.97%
TOTAL SA 0.97%
EOG RESOURCES INC 0.95%
GAMING AND LEISURE PROPERTIE 0.95%
ANADARKO PETROLEUM CORP 0.93%
INTEL CORP 0.92%
GENERAL MOTORS CO 0.91%
HILTON WORLDWIDE HOLDINGS IN 0.91%
SOUTHWEST AIRLINES CO 0.91%
CHARTER COMMUNICATIONS INC-A 0.90%
EXELON CORP 0.90%
FIDELITY NATIONAL INFO SERV 0.89%
APTIV PLC 0.87%
ELI LILLY & CO 0.85%
HARTFORD FINANCIAL SVCS GRP 0.85%
KKR & CO LP 0.85%
PFIZER INC 0.85%
TEXAS INSTRUMENTS INC 0.85%
HALLIBURTON CO 0.82%
EDISON INTERNATIONAL 0.80%
HOME DEPOT INC 0.77%
NRG ENERGY INC 0.77%
BOSTON PROPERTIES INC 0.76%
AIR PRODUCTS & CHEMICALS INC 0.75%
CAPITAL ONE FINANCIAL CORP 0.73%
HONEYWELL INTERNATIONAL INC 0.70%
KEYCORP 0.69%
BALL CORP 0.67%
KRAFT HEINZ CO/THE 0.66%
SEALED AIR CORP 0.64%
AMERICAN ELECTRIC POWER 0.62%
CF INDUSTRIES HOLDINGS INC 0.62%
SUNCOR ENERGY INC 0.59%
KINDER MORGAN INC 0.54%
MANDATORY EXCH TRUST P/P 144A 05.7500 CV PFD 0.54%
PULTEGROUP INC 0.54%
VERIZON COMMUNICATIONS INC 0.54%
CUMMINS INC 0.51%
AIRBUS SE 0.50%
EMERSON ELECTRIC CO 0.50%
NEXTERA ENERGY INC 0.50%
VODAFONE GROUP PLC-SP ADR 0.50%
WALGREENS BOOTS ALLIANCE INC 0.47%
P G & E CORP 0.46%
COTY INC-CL A 0.39%
INVESCO LTD 0.39%
ON SEMICONDUCTOR CORP 0.39%
GENERAL ELECTRIC CO 0.34%
PIONEER NAT RES CO 0.34%
MFA FINANCIAL INC 0.33%
QUALCOMM INC 0.29%
DISH NETWORK CORP-A 0.20%
DELPHI TECHNOLOGIES PLC 0.16%
OPORTUN FIN CORP P/P SERIES H PFD 0.04%
GLOBAL FASHION GRP 0.01%
GLOBAL FASHION GRP P/P 0.01%
OPORTUN FIN CORP P/P 0.01%
OPORTUN FIN F-1 PFD CV P/P 0.01%
OPORTUN FIN G-1 PFD CV P/P 0.01%
CAD/USD 04/18/2018 CITI 0.00%
CAD/USD 04/18/2018 GSFX 0.00%
EUR/USD 06/20/2018 BANKAM 0.00%
EUR/USD 06/20/2018 GSFX 0.00%
EUR/USD 06/20/2018 SSBT 0.00%
GBP/USD 06/20/2018 BANKAM 0.00%
GBP/USD 06/20/2018 BCAP-FX 0.00%
GBP/USD 06/20/2018 GSFX 0.00%
HC BRILLANT SERVICES GMBH P/P 0.00%
NEW BIGFOOT OTHER ASSETS GMBH P/P 0.00%
NEW MIDDLE EAST OTHER ASSETS GMBH 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 C-1 PFD CV P/P 0.00%
OPORTUN FIN D-1 PFD CV P/P 0.00%
OPORTUN FIN E-1 PFD CV P/P 0.00%
OPORTUN FIN F PFD CV P/P 0.00%

Prior top 10 holdings

Top 10 holdings as of 05/31/18
1: JPMorgan Chase 4.02%
2: Microsoft Corp 3.59%
3: Bank Of America Corp 3.42%
4: Citigroup 2.97%
5: Northrop Grumman Corp 2.55%
6: Apple 2.08%
7: Marathon Oil Corp 1.94%
8: ConocoPhillips 1.92%
9: Exxon Mobil Corp 1.91%
10: Johnson Johnson 1.88%
Holdings represent 26.28% of portfolio
Top 10 holdings as of 04/30/18
1: JPMorgan Chase 4.10%
2: Bank Of America Corp 3.54%
3: Microsoft Corp 3.41%
4: Citigroup 3.05%
5: Northrop Grumman Corp 2.52%
6: Johnson & Johnson 1.99%
7: ConocoPhillips 1.88%
8: Apple 1.85%
9: Exxon Mobil Corp 1.83%
10: BD Medical 1.74%
Holdings represent 25.91% of portfolio
Top 10 holdings as of 03/31/18
1: JPMorgan Chase 4.26%
2: Bank Of America Corp 3.66%
3: Microsoft Corp 3.38%
4: Citigroup 3.11%
5: Northrop Grumman Corp 2.76%
6: Johnson & Johnson 2.04%
7: Apple 1.94%
8: Exxon Mobil Corp 1.80%
9: ConocoPhillips 1.73%
10: BD Medical 1.67%
Holdings represent 26.35% of portfolio
Top 10 holdings as of 02/28/18
1: JPMorgan Chase 4.33%
2: Bank Of America Corp 3.79%
3: Citigroup 3.37%
4: Microsoft 3.36%
5: Northrop Grumman Corp 2.68%
6: Apple 2.00%
7: Johnson & Johnson 2.00%
8: Exxon Mobil Corp 1.77%
9: Dowdupont 1.73%
10: BD Medical 1.66%
Holdings represent 26.69% of portfolio

Portfolio Composition as of 05/31/18

Common stock 98.55%
Cash and net other assets 0.79%
Convertible preferred stock 0.66%

Allocations will vary over time. The unclassified sector (where applicable) includes exchange traded funds and other securities not able to be classified by sector.

Mutual funds that invest in government securities are not guaranteed. Mortgage-backed securities are subject to prepayment risk. Capital gains, if any, are taxable for federal and, in most cases, state purposes. For some investors, investment income may be subject to the federal alternative minimum tax. Income from federally exempt funds may be subject to state and local taxes. 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.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.

Top Industry Sectors as of 05/31/18

Financials 23.00%
Energy 13.62%
Information technology 12.68%
Health care 12.45%
Industrials 9.50%
Consumer discretionary 7.53%
Consumer staples 6.17%
Materials 5.52%
Utilities 4.08%
 
Other
5.45%
Real estate 2.77%
Telecommunication services 1.89%
Cash and net other assets 0.79%

Country Allocation as of 05/31/18

United States 95.77%
France 1.51%
United Kingdom 1.27%
Cash and net other assets 0.79%
Canada 0.64%
Luxembourg 0.02%

Expenses

Sales Charges/Fees

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

Mutual funds that invest in government securities are not guaranteed. Mortgage-backed securities are subject to prepayment risk. Capital gains, if any, are taxable for federal and, in most cases, state purposes. For some investors, investment income may be subject to the federal alternative minimum tax. Income from federally exempt funds may be subject to state and local taxes. 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.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%