Putnam Allstate Advisor

Putnam International Value Subaccount

The subaccount seeks capital growth. Current income is a secondary objective.

Fund description

The subaccount applies Putnam's value-oriented strategy of seeking undervalued stocks outside the United States. By buying mostly dividend paying stocks with relatively low valuations, the fund pursues capital growth and, secondarily, current income. The fund is positioned to benefit from the spread of corporate strategies focusing on shareholder value outside the United States.

Sales story

Benefiting from undervalued international companies experiencing positive change International companies: The fund invests in international large and midsize companies to benefit from business opportunities outside the United States.A value strategy: The fund focuses on companies whose stocks are priced below their long-term potential, and where there may be a catalyst for positive change.Building competitive portfolios: The portfolio manager uses fundamental research as the cornerstone of the investment process. This research is supported by quantitative tools and macroeconomic analysis.

Management team

Daily pricing as of 12/07/18

with optional enhanced death benefits
Unit Value $13.643395 $13.243047
Unit Value Change -0.07183 -0.069778

Lipper ranking ‡ as of 10/31/18

Category: International Large-Cap Value

  Percentile ranking Rank/Funds in category
10 yrs. 56% 5/8
1 yr. 42% 5/11
3 yrs. 51% 6/11
5 yrs. 55% 6/10

International investing involves certain risks, such as currency fluctuations, economic instability, and political developments. 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 11/30/18

Fiscal Year End December
Asset Class Putnam Allstate Advisor
Subaccount Status Open to new investors
Number of issues 82
Turnover (fiscal year end) 11%
Net Assets $70M
Inception Date 01/02/97

Performance

Performance as of 09/30/18

Annualized Performance Last Quarter Year
to Date
1 yr. 3 yrs. 5 yrs. 10 yrs. Life of
subaccount
Restated performance
Unit Value -1.04% -5.65% -3.53% 5.86% 1.36% 2.23% 3.78%
Standardized -9.71% -14.00% -12.03% 1.19% -2.55% -1.15% 1.42%
With optional enhanced death benefit
Unit Value -1.08% -5.76% -3.68% 5.70% 1.21% 2.08% 3.62%
Standardized -9.75% -14.10% -12.16% 1.03% -2.71% -1.33% 1.22%
Actual performance
Unit Value -1.04% -5.65% -3.53% 5.86% 1.36% 2.23% 2.28%
Standardized -9.71% -14.00% -12.03% 1.19% -2.55% -1.15% -1.22%
With optional enhanced death benefit
Unit Value -1.08% -5.76% -3.68% 5.70% 1.21% 2.08% 2.12%
Standardized -9.75% -14.10% -12.16% 1.03% -2.71% -1.33% -1.44%

Annual Performance at NAV

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
-46.70% 24.61% 5.79% -14.86% 20.18% 20.69% -10.62% -3.23% -0.15% 23.14%
With optional enhanced death benefit
-46.78% 24.42% 5.62% -14.99% 20.00% 20.50% -10.76% -3.37% -0.31% 22.96%

Restated performance

Monthly as of 11/30/18

Unit Value -0.70%
Standardized -9.39%

YTD as of 12/07/18

Unit Value -16.84%
Standardized -24.40%

With optional enhanced death benefit

Monthly as of 11/30/18

Unit Value -0.72%
Standardized -9.41%

YTD as of 12/07/18

Unit Value -16.96%
Standardized -24.51%

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.

International investing involves certain risks, such as currency fluctuations, economic instability, and political developments. 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 10/31/18

Alpha (%) -0.67
Beta 0.86
R Squared 0.87
Standard Deviation (3 yrs.) 10.90

Holdings

Top 10 holdings as of 10/31/18

Royal Dutch Shell 4.09%
Ing Groep Nv 3.32%
Sanofi 2.97%
Siemens Ag 2.91%
Novartis Ag 2.46%
Vinci 2.44%
Mitsubishi Corp 2.33%
Suncor Energy 2.29%
Astrazeneca 2.25%
Prudential 2.09%
Top 10 holdings, total: 27.15%

Equity Holdings as of 09/30/18

ING GROEP NV-CVA 3.17%
SIEMENS AG 2.83%
SANOFI 2.58%
ROYAL DUTCH SHELL PLC-A SHS 2.43%
SUNCOR ENERGY INC 2.31%
VINCI SA 2.27%
MITSUBISHI CORP 2.23%
NOVARTIS AG-REG 2.11%
PRUDENTIAL PLC 2.09%
ASTRAZENECA PLC 2.00%
AUST AND NZ BANKING GROUP 1.99%
AIA GROUP LTD 1.87%
SUMITOMO MITSUI FINANCIAL GR 1.83%
AXA SA 1.71%
SOCIETE GENERALE SA 1.69%
RIO TINTO PLC 1.65%
NIPPON TELEGRAPH & TELEPHONE 1.59%
KERRY GROUP PLC-A 1.54%
SAMSUNG ELECTRONICS CO LTD 1.53%
TOTAL SA 1.49%
VODAFONE GROUP PLC 1.48%
BAE SYSTEMS PLC 1.40%
ROYAL DUTCH SHELL PLC-B SHS 1.40%
SCOR SE 1.39%
CHUBB LTD 1.35%
HOYA CORP 1.30%
FERGUSON PLC 1.16%
JAPAN AIRLINES CO LTD 1.16%
SPARK NEW ZEALAND LTD 1.16%
ALLIANZ SE-REG 1.12%
VEOLIA ENVIRONNEMENT 1.12%
ENCANA CORP 1.11%
ITOCHU CORP 1.10%
UNILEVER NV-CVA 1.09%
DANSKE BANK A/S 1.07%
EURAZEO SE 1.03%
IMPERIAL BRANDS PLC 1.03%
BAYER AG-REG 1.00%
TOSHIBA CORP 1.00%
JOHNSON CONTROLS INTERNATION 0.99%
DALATA HOTEL GROUP PLC 0.98%
KONINKLIJKE AHOLD DELHAIZE N 0.97%
ORIX CORP 0.97%
CHALLENGER LTD 0.96%
COM HEM HOLDING AB 0.96%
DNB NOR ASA 0.95%
QUILTER PLC 0.94%
SCREEN HOLDINGS CO LTD 0.94%
MITSUI FUDOSAN CO LTD 0.93%
SANWA HOLDINGS CORP 0.91%
SSE PLC 0.91%
INSURANCE AUSTRALIA GROUP LTD 0.90%
FORTUM OYJ 0.89%
GLENCORE PLC 0.89%
NATIXIS 0.89%
SKANDINAVISKA ENSKILDA BAN-A 0.85%
SEVEN & I HOLDINGS CO LTD 0.83%
CRH PLC 0.82%
MAGNA INTERNATIONAL INC 0.82%
MIZUHO FINANCIAL GROUP INC 0.82%
YAMAHA MOTOR CO LTD 0.78%
BANK OF IRELAND GROUP PLC 0.75%
BCE INC 0.75%
COMPAGNIE DE SAINT-GOBAIN 0.75%
NSK LTD 0.75%
FIAT CHRYSLER AUTOMOBILES NV 0.74%
UBS GROUP AG-REG 0.73%
PANASONIC CORP 0.71%
AENA SME SA 0.70%
SHISEIDO CO LTD 0.66%
HENKEL AG & CO KGAA VORZUG 0.63%
LAFARGEHOLCIM LTD-REG 0.61%
KDDI CORP 0.60%
SIG COMBIBLOC GROUP 0.60%
CREDIT SUISSE GROUP AG-REG 0.59%
NINTENDO CO LTD 0.56%
KION GROUP AG 0.53%
SINO-AMERICAN SILICON PRODUC 0.52%
HIBERNIA REIT PLC 0.51%
TELECOM ITALIA-RSP 0.50%
NISSAN MOTOR CO LTD 0.49%
VICINITY CENTRES 0.49%
KYOCERA CORP 0.48%
LLOYDS BANKING GROUP PLC 0.38%

Full Portfolio Holdings as of 09/30/18

ING GROEP NV-CVA 3.17%
SIEMENS AG 2.83%
SANOFI 2.58%
ROYAL DUTCH SHELL PLC-A SHS 2.43%
SUNCOR ENERGY INC 2.31%
VINCI SA 2.27%
MITSUBISHI CORP 2.23%
NOVARTIS AG-REG 2.11%
PRUDENTIAL PLC 2.09%
ASTRAZENECA PLC 2.00%
AUST AND NZ BANKING GROUP 1.99%
AIA GROUP LTD 1.87%
SUMITOMO MITSUI FINANCIAL GR 1.83%
AXA SA 1.71%
SOCIETE GENERALE SA 1.69%
RIO TINTO PLC 1.65%
NIPPON TELEGRAPH & TELEPHONE 1.59%
KERRY GROUP PLC-A 1.54%
SAMSUNG ELECTRONICS CO LTD 1.53%
TOTAL SA 1.49%
VODAFONE GROUP PLC 1.48%
BAE SYSTEMS PLC 1.40%
ROYAL DUTCH SHELL PLC-B SHS 1.40%
SCOR SE 1.39%
CHUBB LTD 1.35%
HOYA CORP 1.30%
FERGUSON PLC 1.16%
JAPAN AIRLINES CO LTD 1.16%
SPARK NEW ZEALAND LTD 1.16%
ALLIANZ SE-REG 1.12%
VEOLIA ENVIRONNEMENT 1.12%
ENCANA CORP 1.11%
ITOCHU CORP 1.10%
UNILEVER NV-CVA 1.09%
DANSKE BANK A/S 1.07%
EURAZEO SE 1.03%
IMPERIAL BRANDS PLC 1.03%
BAYER AG-REG 1.00%
TOSHIBA CORP 1.00%
JOHNSON CONTROLS INTERNATION 0.99%
DALATA HOTEL GROUP PLC 0.98%
KONINKLIJKE AHOLD DELHAIZE N 0.97%
ORIX CORP 0.97%
CHALLENGER LTD 0.96%
COM HEM HOLDING AB 0.96%
DNB NOR ASA 0.95%
QUILTER PLC 0.94%
SCREEN HOLDINGS CO LTD 0.94%
MITSUI FUDOSAN CO LTD 0.93%
SANWA HOLDINGS CORP 0.91%
SSE PLC 0.91%
INSURANCE AUSTRALIA GROUP LTD 0.90%
FORTUM OYJ 0.89%
GLENCORE PLC 0.89%
NATIXIS 0.89%
SKANDINAVISKA ENSKILDA BAN-A 0.85%
SEVEN & I HOLDINGS CO LTD 0.83%
CRH PLC 0.82%
MAGNA INTERNATIONAL INC 0.82%
MIZUHO FINANCIAL GROUP INC 0.82%
YAMAHA MOTOR CO LTD 0.78%
BANK OF IRELAND GROUP PLC 0.75%
BCE INC 0.75%
COMPAGNIE DE SAINT-GOBAIN 0.75%
NSK LTD 0.75%
FIAT CHRYSLER AUTOMOBILES NV 0.74%
UBS GROUP AG-REG 0.73%
PANASONIC CORP 0.71%
AENA SME SA 0.70%
SHISEIDO CO LTD 0.66%
HENKEL AG & CO KGAA VORZUG 0.63%
LAFARGEHOLCIM LTD-REG 0.61%
KDDI CORP 0.60%
SIG COMBIBLOC GROUP 0.60%
SWISS FRANC CALL ACCOUNT 0.60%
CREDIT SUISSE GROUP AG-REG 0.59%
NINTENDO CO LTD 0.56%
KION GROUP AG 0.53%
SINO-AMERICAN SILICON PRODUC 0.52%
HIBERNIA REIT PLC 0.51%
TELECOM ITALIA-RSP 0.50%
NISSAN MOTOR CO LTD 0.49%
VICINITY CENTRES 0.49%
KYOCERA CORP 0.48%
LLOYDS BANKING GROUP PLC 0.38%
CHF/USD 12/19/2018 JPMCB 0.03%
TAIWAN DOLLAR CALL ACCOUNT 0.02%
CAD/USD 10/17/2018 BANKAM 0.01%
CAD/USD 10/17/2018 CITI 0.01%
CAD/USD 10/17/2018 GSFX 0.01%
CAD/USD 10/17/2018 SSBT 0.01%
CAD/USD 10/17/2018 UBS 0.01%
EUR/USD 12/19/2018 BANKAM 0.01%
GBP/USD 12/19/2018 BCAP-FX 0.01%
GBP/USD 12/19/2018 JPMCB 0.01%
JPY/USD 11/19/2018 CITI 0.01%
JPY/USD 11/19/2018 GSFX 0.01%
JPY/USD 11/19/2018 JPMCB 0.01%
SGD/USD 11/19/2018 JPMCB 0.01%
AUD/USD 10/17/2018 BANKAM 0.00%
AUD/USD 10/17/2018 BCAP-FX 0.00%
AUD/USD 10/17/2018 SSBT 0.00%
CAD/USD 10/17/2018 BCAP-FX 0.00%
CANADIAN DOLLAR ACCOUNT 0.00%
CNH/USD 11/19/2018 GSFX 0.00%
EUR/USD 12/19/2018 BCAP-FX 0.00%
EUR/USD 12/19/2018 SSBT 0.00%
GBP/USD 12/19/2018 BANKAM 0.00%
HKD/USD 11/19/2018 BANKAM 0.00%
HKD/USD 11/19/2018 BCAP-FX 0.00%
ILS/USD 10/17/2018 SSBT 0.00%
JPY/USD 11/19/2018 SSBT 0.00%
KOREAN WON CALL ACCOUNT 0.00%
NOK/USD 12/19/2018 JPMCB 0.00%
NZD/USD 10/17/2018 JPMCB 0.00%
SEK/USD 12/19/2018 CSI-FX 0.00%
THE EURO EUR CALL ACCOUNT 0.00%
DKK/USD 12/19/2018 CITI -0.01%
EUR/USD 12/19/2018 GSFX -0.01%
EUR/USD 12/19/2018 JPMCB -0.01%
KRW/USD 11/19/2018 JPMCB -0.01%
EUR/USD 12/19/2018 CITI -0.03%
POUND STERLING CALL ACCOUNT -0.03%

Prior top 10 holdings

Top 10 holdings as of 10/31/18
1: Royal Dutch Shell 4.09%
2: Ing Groep Nv 3.32%
3: Sanofi 2.97%
4: Siemens Ag 2.91%
5: Novartis Ag 2.46%
6: Vinci 2.44%
7: Mitsubishi Corp 2.33%
8: Suncor Energy 2.29%
9: Astrazeneca 2.25%
10: Prudential 2.09%
Holdings represent 27.15% of portfolio
Top 10 holdings as of 09/30/18
1: Royal Dutch Shell 3.83%
2: Ing Groep Nv 3.17%
3: Siemens Ag 2.83%
4: Sanofi 2.58%
5: Suncor Energy 2.31%
6: Vinci 2.27%
7: Mitsubishi Corp 2.23%
8: Novartis Ag 2.11%
9: Prudential 2.09%
10: Astrazeneca 2.00%
Holdings represent 25.42% of portfolio
Top 10 holdings as of 08/31/18
1: Royal Dutch Shell 3.60%
2: Ing Groep Nv 3.30%
3: Siemens Ag 2.86%
4: Sanofi 2.47%
5: Suncor Energy 2.44%
6: Vinci 2.28%
7: Australia New Zealand Banking Group 2.07%
8: Mitsubishi Corp 2.06%
9: Prudential 2.04%
10: Novartis Ag 2.03%
Holdings represent 25.15% of portfolio
Top 10 holdings as of 07/31/18
1: Royal Dutch Shell 3.65%
2: Ing Groep Nv 3.57%
3: Siemens Ag 2.97%
4: Sanofi 2.40%
5: Suncor Energy 2.39%
6: Vinci 2.29%
7: Prudential 2.05%
8: Australia New Zealand Banking Group 2.03%
9: Novartis Ag 1.97%
10: Mitsubishi Corp 1.93%
Holdings represent 25.25% of portfolio

Portfolio Composition as of 10/31/18

Common stock 96.88%
Cash and net other assets 3.12%

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.

International investing involves certain risks, such as currency fluctuations, economic instability, and political developments. 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.

Top Industry Sectors as of 10/31/18

Financials 29.57%
Industrials 16.51%
Health care 10.08%
Energy 8.91%
Communication services 7.25%
Consumer staples 7.13%
Materials 5.34%
Consumer discretionary 3.82%
Information technology 3.48%
 
Other
7.91%
Utilities 3.14%
Cash and net other assets 3.12%
Real estate 1.65%

Country Allocation as of 10/31/18

Japan 21.07%
United Kingdom 18.55%
France 14.57%
Germany 6.38%
Netherlands 5.67%
Switzerland 5.07%
Australia 5.05%
Canada 4.99%
Ireland 4.48%
 
Other
14.17%
Cash and net other assets 3.12%
Sweden 1.96%
Hong Kong 1.83%
South Korea 1.56%
United States 1.45%
Norway 0.95%
Finland 0.85%
Singapore 0.74%
Spain 0.74%
Italy 0.55%
Taiwan 0.42%

Expenses

Sales Charges/Fees

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

International investing involves certain risks, such as currency fluctuations, economic instability, and political developments. 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 7.00%
2 7.00%
3 6.00%
4 5.00%
5 4.00%
6 3.00%
7 2.00%
8+ 0.00%