Putnam Allstate Advisor Preferred

Putnam Multi-Cap Value Subaccount

The subaccount seeks capital appreciation and, as a secondary objective, current income.

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

Pursuing capital appreciation through undervalued companies Flexibility: The fund's portfolio manager can invest in companies of all sizes.A value strategy: The fund targets companies whose stocks are priced below their long-term potential, and where there may be a catalyst for positive change.Research focus: Backed by an Equity Research team, the portfolio manager uses his stock-picking expertise to identify opportunities and manage risk.

Management team

Daily pricing as of 09/22/17

with optional enhanced death benefits
Unit Value $30.350422 $29.691179
Unit Value Change 0.06725 0.065668

Lipper ranking ‡ as of 08/31/17

Category: Multi-Cap Value Funds

  Percentile ranking Rank/Funds in category
10 yrs. 31% 12/38
1 yr. 78% 44/56
3 yrs. 65% 36/55
5 yrs. 42% 22/52

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 08/31/17

Fiscal Year End December
Asset Class Putnam Allstate Advisor Preferred
Subaccount Status Open to new investors
Number of issues 77
Turnover (fiscal year end) 84%
Net Assets $37M
Inception Date 05/01/03

Performance

Performance as of 06/30/17

Annualized Performance Last Quarter Year
to Date
1 yr. 3 yrs. 5 yrs. 10 yrs. Life of
subaccount
Restated performance
Unit Value 0.63% 3.78% 11.14% 3.38% 12.44% 4.26% 8.06%
Standardized -1.37% 1.78% 9.14% 3.38% 12.44% 4.26% 8.06%
With optional enhanced death benefit
Unit Value 0.59% 3.70% 10.98% 3.23% 12.26% 4.10% 7.90%
Standardized -1.41% 1.70% 8.98% 3.23% 12.26% 4.10% 7.90%
Actual performance
Unit Value 0.63% 3.78% 11.14% 3.38% 12.44% 4.26% 8.06%
Standardized -1.37% 1.78% 9.14% 3.38% 12.44% 4.26% 8.06%
With optional enhanced death benefit
Unit Value -- -- -- -- -- -- --
Standardized -- -- -- -- -- -- --

Annual Performance at NAV

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
0.00% -43.77% 36.71% 22.02% -6.68% 14.33% 39.73% 8.93% -5.90% 11.13%
With optional enhanced death benefit
-0.15% -43.86% 36.50% 21.83% -6.83% 14.16% 39.52% 8.76% -6.05% 10.96%

Restated performance

Monthly as of 08/31/17

Unit Value -1.28%
Standardized -3.25%

YTD as of 09/22/17

Unit Value 5.04%
Standardized 3.04%

With optional enhanced death benefit

Monthly as of 08/31/17

Unit Value -1.29%
Standardized -3.26%

YTD as of 09/22/17

Unit Value 4.93%
Standardized 2.93%

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 08/31/17

Alpha (%) -0.86
Beta 0.92
R Squared 0.84
Standard Deviation (3 yrs.) 10.43

Holdings

Top 10 holdings as of 08/31/17

Allergan 4.01%
Dxc Technology 3.52%
Union Pacific Corp 3.44%
Jazz Pharmaceuticals 3.33%
First Republic Bank/Ca 3.23%
Boston Scientific Corp 2.40%
Mallinckrodt 2.40%
Nrg Energy 2.40%
Ball Corp 2.35%
Ametek 2.27%
Top 10 holdings, total: 29.35%

Equity Holdings as of 06/30/17

UNION PACIFIC CORP 3.45%
JAZZ PHARMACEUTICALS PLC 3.36%
FIRST REPUBLIC BANK/CA 3.23%
EOG RESOURCES INC 3.12%
DXC TECHNOLOGY CO 3.08%
SNAP-ON INC 2.99%
AMETEK INC 2.73%
BALL CORP 2.68%
ALLERGAN PLC 2.67%
MALLINCKRODT PLC 2.46%
KEYCORP 2.37%
BOSTON SCIENTIFIC CORP 2.35%
BANK OF AMERICA CORP 2.08%
SEALED AIR CORP 2.07%
FIDELITY NATIONAL INFO SERV 1.76%
AGILENT TECHNOLOGIES INC 1.71%
NORTHROP GRUMMAN CORP 1.71%
E*TRADE FINANCIAL CORPORATION 1.64%
PACWEST BANCORP 1.64%
EXELON CORP 1.63%
CHUBB LTD 1.55%
HARRIS CORP 1.53%
AMEREN CORPORATION 1.50%
JPMORGAN CHASE & CO 1.50%
LAM RESEARCH CORP 1.46%
ALLERGAN PLC 05.5000 CV PFD 1.45%
BECTON DICKINSON AND CO 1.45%
WYNN RESORTS LTD 1.41%
INVESCO LTD 1.38%
JOHNSON CONTROLS INTERNATION 1.33%
ARAMARK 1.28%
W.R. GRACE & CO 1.28%
NRG ENERGY INC 1.26%
JM SMUCKER CO/THE 1.24%
XEROX CORP 1.20%
PINNACLE FOODS INC 1.15%
EAST WEST BANCORP INC 1.12%
HARTFORD FINANCIAL SVCS GRP 1.10%
OLIN CORP 1.10%
GOODYEAR TIRE & RUBBER CO 1.06%
CELANESE CORP-SERIES A 1.04%
HANESBRANDS INC 1.00%
EDISON INTERNATIONAL 0.99%
TJX COMPANIES INC 0.98%
HOST HOTELS & RESORTS INC 0.94%
AMERICAN INTERNATIONAL GROUP 0.91%
BRUNSWICK CORP 0.90%
PENN NATIONAL GAMING INC 0.87%
HCP INC 0.85%
WESTERN DIGITAL CORP 0.85%
CMS ENERGY CORP 0.84%
GRAPHIC PACKAGING HOLDING CO 0.82%
GAP INC/THE 0.78%
L3 TECHNOLOGIES INC 0.77%
APACHE CORP 0.71%
ENCANA CORP 0.70%
OLD NATIONAL BANCORP 0.70%
MARATHON OIL CORP 0.68%
HANOVER INSURANCE GROUP INC/ 0.67%
LIMITED BRANDS INC 0.64%
ALCOA CORP 0.57%
EDGEWELL PERSONAL CARE CO 0.55%
ASSURED GUARANTY LTD 0.51%
PULTEGROUP INC 0.48%
AMERICAN AIRLINES GROUP INC 0.47%
HILTON WORLDWIDE HOLDINGS IN 0.47%
AVON PRODUCTS INC 0.46%
CLIFFS NATURAL RESOURCES INC 0.42%
J. JILL INC 0.42%
QEP RESOURCES INC 0.39%
MATTEL INC 0.30%
UNITED STATES STEEL CORP 0.28%
RE/MAX HOLDINGS INC-CL A 0.01%

Full Portfolio Holdings as of 06/30/17

UNION PACIFIC CORP 3.45%
JAZZ PHARMACEUTICALS PLC 3.36%
FIRST REPUBLIC BANK/CA 3.23%
EOG RESOURCES INC 3.12%
DXC TECHNOLOGY CO 3.08%
SNAP-ON INC 2.99%
AMETEK INC 2.73%
BALL CORP 2.68%
ALLERGAN PLC 2.67%
MALLINCKRODT PLC 2.46%
KEYCORP 2.37%
BOSTON SCIENTIFIC CORP 2.35%
BANK OF AMERICA CORP 2.08%
SEALED AIR CORP 2.07%
FIDELITY NATIONAL INFO SERV 1.76%
AGILENT TECHNOLOGIES INC 1.71%
NORTHROP GRUMMAN CORP 1.71%
E*TRADE FINANCIAL CORPORATION 1.64%
PACWEST BANCORP 1.64%
EXELON CORP 1.63%
CHUBB LTD 1.55%
HARRIS CORP 1.53%
AMEREN CORPORATION 1.50%
JPMORGAN CHASE & CO 1.50%
LAM RESEARCH CORP 1.46%
ALLERGAN PLC 05.5000 CV PFD 1.45%
BECTON DICKINSON AND CO 1.45%
WYNN RESORTS LTD 1.41%
INVESCO LTD 1.38%
JOHNSON CONTROLS INTERNATION 1.33%
ARAMARK 1.28%
W.R. GRACE & CO 1.28%
NRG ENERGY INC 1.26%
JM SMUCKER CO/THE 1.24%
XEROX CORP 1.20%
PINNACLE FOODS INC 1.15%
EAST WEST BANCORP INC 1.12%
HARTFORD FINANCIAL SVCS GRP 1.10%
OLIN CORP 1.10%
GOODYEAR TIRE & RUBBER CO 1.06%
CELANESE CORP-SERIES A 1.04%
HANESBRANDS INC 1.00%
EDISON INTERNATIONAL 0.99%
TJX COMPANIES INC 0.98%
HOST HOTELS & RESORTS INC 0.94%
AMERICAN INTERNATIONAL GROUP 0.91%
BRUNSWICK CORP 0.90%
PENN NATIONAL GAMING INC 0.87%
HCP INC 0.85%
WESTERN DIGITAL CORP 0.85%
CMS ENERGY CORP 0.84%
GRAPHIC PACKAGING HOLDING CO 0.82%
GAP INC/THE 0.78%
L3 TECHNOLOGIES INC 0.77%
APACHE CORP 0.71%
ENCANA CORP 0.70%
OLD NATIONAL BANCORP 0.70%
MARATHON OIL CORP 0.68%
HANOVER INSURANCE GROUP INC/ 0.67%
LIMITED BRANDS INC 0.64%
ALCOA CORP 0.57%
EDGEWELL PERSONAL CARE CO 0.55%
ASSURED GUARANTY LTD 0.51%
PULTEGROUP INC 0.48%
AMERICAN AIRLINES GROUP INC 0.47%
HILTON WORLDWIDE HOLDINGS IN 0.47%
AVON PRODUCTS INC 0.46%
CLIFFS NATURAL RESOURCES INC 0.42%
J. JILL INC 0.42%
QEP RESOURCES INC 0.39%
MATTEL INC 0.30%
UNITED STATES STEEL CORP 0.28%
RE/MAX HOLDINGS INC-CL A 0.01%

Prior top 10 holdings

Top 10 holdings as of 08/31/17
1: Allergan 4.01%
2: Dxc Technology 3.52%
3: Union Pacific Corp 3.44%
4: Jazz Pharmaceuticals 3.33%
5: First Republic Bank/Ca 3.23%
6: Boston Scientific Corp 2.40%
7: Mallinckrodt 2.40%
8: Nrg Energy 2.40%
9: Ball Corp 2.35%
10: Ametek 2.27%
Holdings represent 29.35% of portfolio
Top 10 holdings as of 07/31/17
1: Allergan 4.29%
2: Jazz Pharmaceuticals 3.34%
3: EOG Resources 3.30%
4: Union Pacific Corp 3.28%
5: First Republic Bank/Ca 3.25%
6: Dxc Technology 3.16%
7: Ball Corp 2.68%
8: Mallinckrodt 2.61%
9: Ametek 2.51%
10: Nrg Energy 2.31%
Holdings represent 30.73% of portfolio
Top 10 holdings as of 06/30/17
1: Allergan 4.12%
2: Union Pacific Corp 3.45%
3: Jazz Pharmaceuticals 3.36%
4: First Republic Bank/Ca 3.23%
5: EOG Resources 3.12%
6: Dxc Technology 3.08%
7: Snap-On 2.99%
8: Ametek 2.73%
9: Ball Corp 2.68%
10: Mallinckrodt 2.46%
Holdings represent 31.22% of portfolio
Top 10 holdings as of 05/31/17
1: Allergan 3.83%
2: Union Pacific Corp 3.53%
3: EOG Resources 3.16%
4: Jazz Pharmaceuticals 3.14%
5: Dxc Technology 3.14%
6: Snap-On 3.09%
7: First Republic Bank/Ca 3.00%
8: Ametek 2.78%
9: Ball Corp 2.63%
10: Pacwest Bancorp 2.36%
Holdings represent 30.66% of portfolio

Portfolio Composition as of 08/31/17

Common stock 95.36%
Cash and net other assets 3.24%
Convertible preferred stock 1.40%

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 08/31/17

Financials 17.99%
Health care 16.58%
Industrials 14.48%
Information technology 11.32%
Consumer discretionary 9.90%
Materials 9.83%
Utilities 6.77%
Energy 5.67%
Consumer staples 3.26%
 
Other
4.20%
Cash and net other assets 3.24%
Real estate 0.96%

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%