Putnam Allstate Advisor

Putnam Global Health Care Subaccount

The subaccount seeks capital appreciation.

Fund description

The subaccount seeks to capitalize on the strength of the health-care sector, targeting companies of all sizes. Holdings encompass an array of industries, including pharmaceuticals, health-care services, and biotechnology. The fund seeks companies that offer strong long-term growth prospects, regardless of their size.

Sales story

Investing in the health-care sectorA dynamic sector: From biotech to pharmaceuticals, the fund seeks out companies that profit from the global demand for health care.A range of companies: The fund invests worldwide in businesses at different stages of growth, from rapidly growing newer companies to established global corporations.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 09/17/19

with optional enhanced death benefits
Unit Value $30.784063 $29.845694
Unit Value Change 0.106661 0.103288

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 08/31/19

Fiscal Year End December
Asset Class Putnam Allstate Advisor
Subaccount Status Open to new investors
Number of issues 46
Turnover (fiscal year end) 54%
Net Assets $132M
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 1.17% 11.35% 6.14% 5.85% 5.56% 10.93% 5.35%
Standardized -7.65% 1.81% -3.03% 1.15% 2.11% 8.95% 2.34%
With optional enhanced death benefit
Unit Value 1.13% 11.27% 5.98% 5.69% 5.40% 10.76% 5.19%
Standardized -7.69% 1.74% -3.18% 0.99% 1.94% 8.77% 2.13%
Actual performance
Unit Value 1.17% 11.35% 6.14% 5.85% 5.56% 10.93% 5.77%
Standardized -7.65% 1.81% -3.03% 1.15% 2.11% 8.95% 3.01%
With optional enhanced death benefit
Unit Value 1.13% 11.27% 5.98% 5.69% 5.40% 10.76% 5.61%
Standardized -7.69% 1.74% -3.18% 0.99% 1.94% 8.77% 2.80%

Annual Performance at NAV

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
24.43% 1.19% -2.41% 20.74% 39.89% 26.05% 6.44% -12.46% 13.86% -1.84%
With optional enhanced death benefit
24.24% 1.03% -2.56% 20.55% 39.68% 25.86% 6.28% -12.59% 13.69% -1.99%

Restated performance

Monthly as of 08/31/19

Unit Value 0.81%
Standardized -7.98%

YTD as of 09/17/19

Unit Value 10.50%
Standardized 1.02%

With optional enhanced death benefit

Monthly as of 08/31/19

Unit Value 0.80%
Standardized -7.99%

YTD as of 09/17/19

Unit Value 10.38%
Standardized 0.91%

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.

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.

Risk Characteristics as of 08/31/19

Alpha (%) -1.60
Beta 1.03
R Squared 0.94
Standard Deviation (3 yrs.) 12.80

Holdings

Top 10 holdings as of 08/31/19

Merck 7.44%
UnitedHealth Group 6.76%
Novartis Ag 6.07%
Johnson Johnson 5.17%
Danaher Corp 4.84%
Astrazeneca 4.55%
Abbvie 4.48%
Vertex Pharmaceuticals 3.87%
Roche Holding Ag 3.81%
Medicines The 3.60%
Top 10 holdings, total: 50.59%

Full Portfolio Holdings as of 06/30/19

UNITEDHEALTH GROUP INC 7.92%
MERCK & CO. INC. 7.67%
NOVARTIS AG-REG 6.23%
DANAHER CORP 5.82%
JOHNSON & JOHNSON 5.10%
PFIZER INC 4.20%
ASTRAZENECA PLC 4.06%
ELI LILLY & CO 3.86%
ROCHE HOLDING AG-GENUSSCHEIN 3.81%
VERTEX PHARMACEUTICALS INC 3.58%
MEDICINES COMPANY 2.97%
BOSTON SCIENTIFIC CORP 2.91%
THERMO FISHER SCIENTIFIC INC 2.79%
AMGEN INC 2.73%
ABBVIE INC 2.54%
INTUITIVE SURGICAL INC 2.16%
GLAXOSMITHKLINE PLC 1.92%
ALLERGAN PLC 1.75%
ABBOTT LABORATORIES 1.71%
NOVO NORDISK A/S-B 1.69%
ASCENDIS PHARMA A/S - ADR 1.67%
CIGNA CORP 1.66%
METTLER-TOLEDO INTERNATIONAL 1.54%
BRISTOL-MYERS SQUIBB CO 1.43%
BAXTER INTERNATIONAL INC 1.37%
CSL LTD 1.32%
SANOFI 1.14%
MEDTRONIC PLC 1.06%
TAKEDA PHARMACEUTICAL CO LTD 1.03%
DAIICHI SANKYO CO LTD 0.98%
IDEXX LABORATORIES INC 0.97%
ORCHARD THERAPEUTICS PLC 0.92%
ANTHEM INC 0.89%
EDWARDS LIFESCIENCES CORP 0.87%
BECTON DICKINSON AND CO 0.80%
IQVIA HOLDINGS INC 0.78%
ALCON INC 0.76%
LONZA GROUP AG-REG 0.75%
DAVITA INC 0.72%
HUMANA INC 0.70%
FRESENIUS SE & CO KGAA 0.53%
MOMENTA PHARMACEUTICALS INC 0.50%
ALNYLAM PHARMACEUTICALS INC 0.42%
BLUEPRINT MEDICINES CORP 0.27%
IRONWOOD PHARMACEUTICALS INC 0.27%
ICU MEDICAL INC 0.20%
JPY/USD 08/21/2019 GSFX 0.10%
ADAPTIVE BIOTECHNOLOGIES 0.09%
TREASURY BILL 00.0000 07/25/2019 0.09%
TREASURY BILL 00.0000 07/18/2019 0.08%
FENNEC PHARMACEUTICALS INC 0.06%
EUR/USD 09/18/2019 BANKAM 0.06%
JPY/USD 08/21/2019 CSI-FX 0.02%
CAD/USD 07/17/2019 CITI 0.00%
ILS/USD 07/17/2019 SSBT 0.00%
EUR/USD 09/18/2019 HSBCB 0.00%
NEURALSTEM INC SERIES K COMMON STOCK PURCHASE WARRANT 0.00%
CHF/USD 09/18/2019 BCAP-FX -0.01%
GBP/USD 09/18/2019 BCAP-FX -0.01%
AUD/USD 07/17/2019 JPMCB -0.01%
DKK/USD 09/18/2019 CITI -0.01%
CHF/USD 09/18/2019 JPMCB -0.04%

Prior top 10 holdings

Top 10 holdings as of 08/31/19
1: Merck 7.44%
2: UnitedHealth Group 6.76%
3: Novartis Ag 6.07%
4: Johnson Johnson 5.17%
5: Danaher Corp 4.84%
6: Astrazeneca 4.55%
7: Abbvie 4.48%
8: Vertex Pharmaceuticals 3.87%
9: Roche Holding Ag 3.81%
10: Medicines The 3.60%
Holdings represent 50.59% of portfolio
Top 10 holdings as of 07/31/19
1: UnitedHealth Group 8.27%
2: Merck 7.28%
3: Novartis Ag 6.40%
4: Johnson&Johnson 4.89%
5: Danaher Corp 4.76%
6: Astrazeneca 4.37%
7: Vertex Pharmaceuticals 4.17%
8: Pfizer 3.86%
9: Roche Holding Ag 3.72%
10: Eli Lilly 3.43%
Holdings represent 51.15% of portfolio
Top 10 holdings as of 06/30/19
1: UnitedHealth Group 7.92%
2: Merck 7.67%
3: Novartis Ag 6.23%
4: Danaher Corp 5.83%
5: Johnson & Johnson 5.10%
6: Pfizer 4.20%
7: Astrazeneca 4.06%
8: Eli Lilly 3.86%
9: Roche Holding Ag 3.81%
10: Vertex Pharmaceuticals 3.58%
Holdings represent 52.26% of portfolio
Top 10 holdings as of 05/31/19
1: UnitedHealth Group 9.24%
2: Merck 8.33%
3: Danaher Corp 6.27%
4: Novartis Ag 6.16%
5: Johnson&Johnson 5.05%
6: Pfizer 4.24%
7: Eli Lilly 4.15%
8: Roche Holding Ag 4.15%
9: Astrazeneca 3.67%
10: Vertex Pharmaceuticals 3.13%
Holdings represent 54.39% of portfolio

Portfolio Composition as of 08/31/19

Common stock 98.77%
Cash and net other assets 1.23%

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 08/31/19

Pharmaceuticals 42.44%
Biotechnology 22.30%
Health Care Equipment & Supplies 18.69%
Health Care Providers & Services 10.86%
Life Sciences Tools & Services 4.48%
Cash and net other assets 1.23%

Country Allocation as of 08/31/19

United States 71.95%
Switzerland 11.46%
United Kingdom 7.31%
Denmark 2.95%
Japan 2.28%
Australia 1.46%
Cash and net other assets 1.23%
France 1.16%
Canada 0.20%

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 7.00%
2 7.00%
3 6.00%
4 5.00%
5 4.00%
6 3.00%
7 2.00%
8+ 0.00%