Putnam Allstate Advisor Plus

Putnam Sustainable Future Subaccount

The subaccount seeks long-term capital appreciation.

Fund description

The subaccount employs a value strategy to identify undervalued, high-quality companies among the market's mid-cap offerings. The subaccount's managers seek stocks they believe have been under-estimated by the market. They target profitable, established companies of two kinds: smaller companies that have grown to midsize, and larger companies that have fallen out of favor temporarily but are expected to recover.

Sales story

Investing in growing companies solving sustainability challengesImpact companies: The fund invests in growth companies that directly demonstrate positive impact in social, environmental, or economic development.Active strategy: The managers utilize bottom-up research to identify companies with attractive sustainability, fundamental, and valuation characteristics.Veteran team: A dedicated sustainable investing team is backed by Putnam's equity research and quantitative/risk analysis groups.

Management team

Daily pricing as of 09/18/18

with optional enhanced death benefits
Unit Value $35.204424 $34.389122
Unit Value Change 0.157915 0.154117

Lipper ranking ‡ as of 08/31/18

Category: Multi-Cap Growth Funds

  Percentile ranking Rank/Funds in category
10 yrs. 92% 76/82
1 yr. 89% 90/101
3 yrs. 96% 96/100
5 yrs. 88% 87/98

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 08/31/18

Fiscal Year End December
Asset Class Putnam Allstate Advisor Plus
Subaccount Status Open to new investors
Number of issues 57
Turnover (fiscal year end) 61%
Net Assets $37M
Inception Date 05/01/03

Performance

Performance as of 06/30/18

Annualized Performance Last Quarter Year
to Date
1 yr. 3 yrs. 5 yrs. 10 yrs. Life of
subaccount
Restated performance
Unit Value 5.21% 4.00% 9.15% 5.24% 9.37% 7.05% 8.19%
Standardized -2.79% -4.00% 1.15% 2.78% 8.52% 7.05% 8.19%
With optional enhanced death benefit
Unit Value 5.17% 3.92% 8.99% 5.08% 9.20% 6.89% 8.02%
Standardized -2.83% -4.08% 0.99% 2.61% 8.34% 6.89% 8.02%
Actual performance
Unit Value 5.21% 4.00% 9.15% 5.24% 9.37% 7.05% 8.19%
Standardized -2.79% -4.00% 1.15% 2.78% 8.52% 7.05% 8.19%
With optional enhanced death benefit
Unit Value -- -- -- -- -- -- --
Standardized -- -- -- -- -- -- --

Annual Performance at NAV

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
-43.74% 36.78% 22.08% -6.64% 14.39% 39.80% 8.98% -5.86% 11.19% 8.94%
With optional enhanced death benefit
-43.83% 36.57% 21.89% -6.78% 14.22% 39.59% 8.82% -6.00% 11.02% 8.78%

Restated performance

Monthly as of 08/31/18

Unit Value 4.60%
Standardized -3.40%

YTD as of 09/18/18

Unit Value 11.06%
Standardized 3.06%

With optional enhanced death benefit

Monthly as of 08/31/18

Unit Value 4.59%
Standardized -3.41%

YTD as of 09/18/18

Unit Value 10.94%
Standardized 2.94%

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 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 08/31/18

Alpha (%) -3.24
Beta 0.94
R Squared 0.88
Standard Deviation (3 yrs.) 10.02

Holdings

Top 10 holdings as of 08/31/18

Novozymes A/S - B Shares 3.97%
Becton Dickinson And 3.93%
Dxc Technology 3.74%
Salesforce.Com 3.59%
Vail Resorts 3.43%
Alphabet 3.30%
Unilever 3.18%
Everbridge 3.13%
Chipotle Mexican Grill 2.90%
Adobe Systems 2.81%
Top 10 holdings, total: 33.98%

Equity Holdings as of 06/30/18

NOVOZYMES A/S-B SHARES 4.03%
MCCORMICK & CO-NON VTG SHRS 3.90%
BECTON DICKINSON AND CO 3.80%
DXC TECHNOLOGY CO 3.49%
SALESFORCE.COM INC 3.38%
VAIL RESORTS INC 3.33%
UNILEVER PLC 3.27%
ALPHABET INC-CL A 3.19%
FIRST REPUBLIC BANK/CA 2.85%
CHIPOTLE MEXICAN GRILL INC 2.78%
DANAHER CORP 2.72%
WEBSTER FINANCIAL CORP 2.64%
EVERBRIDGE INC 2.60%
FORTIVE CORP 2.55%
PENUMBRA INC 2.55%
JAZZ PHARMACEUTICALS PLC 2.48%
MASTERCARD INC - A 2.23%
ADOBE SYSTEMS INC 2.19%
TELADOC INC 2.15%
DR PEPPER SNAPPLE GROUP INC 2.13%
EDWARDS LIFESCIENCES CORP 2.13%
INSTRUCTURE INC 1.95%
BLACKROCK INC 1.85%
PRUDENTIAL PLC 1.77%
CHR HANSEN HOLDING A/S 1.65%
KION GROUP AG 1.63%
APPLIED MATERIALS INC 1.62%
MSCI INC 1.62%
NEXTERA ENERGY INC 1.62%
BALL CORP 1.50%
ADIDAS AG 1.42%
STITCH FIX INC-CLASS A 1.36%
TJX COMPANIES INC 1.24%
XYLEM INC 1.15%
E*TRADE FINANCIAL CORPORATION 1.11%
VERTEX PHARMACEUTICALS INC 1.09%
NXP SEMICONDUCTORS NV 1.04%
ITRON INC 0.98%
HEALTHEQUITY INC 0.97%
ECOLAB INC 0.91%
ORBOTECH LTD 0.91%
AGILENT TECHNOLOGIES INC 0.90%
ON SEMICONDUCTOR CORP 0.89%
INVESCO LTD 0.85%
NORFOLK SOUTHERN CORP 0.78%
RAYMOND JAMES FINANCIAL INC 0.74%
GENTERA SAB DE CV 0.60%
BANK OF AMERICA CORP 0.53%
EURAZEO SA 0.50%
OWENS CORNING 0.50%
MEDICINES COMPANY 0.48%
GALAPAGOS NV-SPON ADR 0.47%
BLUEBIRD BIO INC 0.43%
CLOVIS ONCOLOGY INC 0.42%
FIRST SOLAR INC 0.39%
NOVOZYMES A/S-UNSPONS ADR 0.39%

Full Portfolio Holdings as of 06/30/18

NOVOZYMES A/S-B SHARES 4.03%
MCCORMICK & CO-NON VTG SHRS 3.90%
BECTON DICKINSON AND CO 3.80%
DXC TECHNOLOGY CO 3.49%
SALESFORCE.COM INC 3.38%
VAIL RESORTS INC 3.33%
UNILEVER PLC 3.27%
ALPHABET INC-CL A 3.19%
FIRST REPUBLIC BANK/CA 2.85%
CHIPOTLE MEXICAN GRILL INC 2.78%
DANAHER CORP 2.72%
WEBSTER FINANCIAL CORP 2.64%
EVERBRIDGE INC 2.60%
FORTIVE CORP 2.55%
PENUMBRA INC 2.55%
JAZZ PHARMACEUTICALS PLC 2.48%
MASTERCARD INC - A 2.23%
ADOBE SYSTEMS INC 2.19%
TELADOC INC 2.15%
DR PEPPER SNAPPLE GROUP INC 2.13%
EDWARDS LIFESCIENCES CORP 2.13%
INSTRUCTURE INC 1.95%
BLACKROCK INC 1.85%
PRUDENTIAL PLC 1.77%
CHR HANSEN HOLDING A/S 1.65%
KION GROUP AG 1.63%
APPLIED MATERIALS INC 1.62%
MSCI INC 1.62%
NEXTERA ENERGY INC 1.62%
BALL CORP 1.50%
ADIDAS AG 1.42%
STITCH FIX INC-CLASS A 1.36%
TJX COMPANIES INC 1.24%
XYLEM INC 1.15%
E*TRADE FINANCIAL CORPORATION 1.11%
VERTEX PHARMACEUTICALS INC 1.09%
NXP SEMICONDUCTORS NV 1.04%
ITRON INC 0.98%
HEALTHEQUITY INC 0.97%
ECOLAB INC 0.91%
ORBOTECH LTD 0.91%
AGILENT TECHNOLOGIES INC 0.90%
ON SEMICONDUCTOR CORP 0.89%
INVESCO LTD 0.85%
NORFOLK SOUTHERN CORP 0.78%
RAYMOND JAMES FINANCIAL INC 0.74%
GENTERA SAB DE CV 0.60%
BANK OF AMERICA CORP 0.53%
EURAZEO SA 0.50%
OWENS CORNING 0.50%
THE EURO EUR CALL ACCOUNT 0.49%
MEDICINES COMPANY 0.48%
GALAPAGOS NV-SPON ADR 0.47%
BLUEBIRD BIO INC 0.43%
CLOVIS ONCOLOGY INC 0.42%
FIRST SOLAR INC 0.39%
NOVOZYMES A/S-UNSPONS ADR 0.39%
MEXICAN PESO CALL ACCOUNT 0.03%
POUND STERLING CALL ACCOUNT 0.00%

Prior top 10 holdings

Top 10 holdings as of 08/31/18
1: Novozymes A/S - B Shares 3.97%
2: Becton Dickinson And 3.93%
3: Dxc Technology 3.74%
4: Salesforce.Com 3.59%
5: Vail Resorts 3.43%
6: Alphabet 3.30%
7: Unilever 3.18%
8: Everbridge 3.13%
9: Chipotle Mexican Grill 2.90%
10: Adobe Systems 2.81%
Holdings represent 33.98% of portfolio
Top 10 holdings as of 07/31/18
1: Novozymes A/S - B Shares 4.14%
2: Becton Dickinson And 3.92%
3: Mccormick Md 3.90%
4: Dxc Technology 3.62%
5: Alphabet 3.42%
6: Salesforce.Com 3.36%
7: Unilever 3.33%
8: Vail Resorts 3.32%
9: First Republic Bank/Ca 2.87%
10: Danaher Corp 2.79%
Holdings represent 34.67% of portfolio
Top 10 holdings as of 06/30/18
1: Novozymes A/S - B Shares 4.54%
2: Mccormick Md 3.90%
3: Becton Dickinson And 3.80%
4: Dxc Technology 3.49%
5: Salesforce.Com 3.38%
6: Vail Resorts 3.33%
7: Unilever 3.27%
8: Alphabet 3.19%
9: First Republic Bank/Ca 2.85%
10: Chipotle Mexican Grill 2.78%
Holdings represent 34.53% of portfolio
Top 10 holdings as of 05/31/18
1: Novozymes A/S - B Shares 4.55%
2: Dxc Technology 3.97%
3: Becton Dickinson And 3.50%
4: Mccormick Md 3.38%
5: Unilever 3.24%
6: Vail Resorts 3.23%
7: Salesforce.Com 3.19%
8: Alphabet 3.10%
9: Penumbra 2.95%
10: First Republic Bank/Ca 2.92%
Holdings represent 34.03% of portfolio

Portfolio Composition as of 08/31/18

Common stock 96.77%
Cash and net other assets 3.23%

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 08/31/18

Information technology 26.77%
Health care 19.78%
Financials 14.70%
Consumer discretionary 10.99%
Materials 8.38%
Consumer staples 7.82%
Industrials 6.78%
Cash and net other assets 3.22%
Utilities 1.56%

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 8.00%
2 8.00%
3 8.00%
4 7.00%
5 6.00%
6 5.00%
7 4.00%
8 3.00%
9+ 0.00%