Putnam Allstate Advisor

Putnam Income Subaccount

The subaccount seeks high current income consistent with what Putnam Management believes to be prudent risk.

Fund description

The subaccount takes a flexible approach to pursuing high current income by diversifying across a range of fixed-income sectors. These sectors include, but are not limited to, investment-grade corporate bonds, mortgage-backed securities, U.S. Treasuries, and high-yield corporate bonds. The subaccount seeks to capitalize on those market sectors and maturities

Sales story

Pursuing income with an all-weather bond portfolioDiverse opportunities: The fund invests across all sectors of the U.S. bond market, including mortgage-backed, corporate, and government bonds.A flexible strategy: The portfolio managers pursue an attractive level of income, adjusting the portfolio to favor attractive sectors as interest rates and market conditions change.Leading research: The managers, supported by Putnam's fixed-income research division, analyze a range of bonds to build a competitive portfolio.

Management team

Daily pricing as of 10/27/20

with optional enhanced death benefits
Unit Value $21.944132 $21.239757
Unit Value Change 0.038124 0.036813

Lipper ranking ‡ as of 09/30/20

Category: Core Bond Funds

  Percentile ranking Rank/Funds in category
10 yrs. 7% 5/82
1 yr. 97% 113/116
3 yrs. 13% 14/109
5 yrs. 21% 21/100

‡ 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 09/30/20

Fiscal Year End December
Asset Class Putnam Allstate Advisor
Subaccount Status Open to new investors
Number of issues 1291
Turnover (fiscal year end) 580%
Net Assets $244M
Inception Date 02/01/88

Performance

Performance as of 09/30/20

Annualized Performance Last Quarter Year
to Date
1 yr. 3 yrs. 5 yrs. 10 yrs. Life of
subaccount
Restated performance
Unit Value 0.58% 3.10% 3.31% 4.28% 3.24% 3.30% 4.82%
Standardized -8.20% -5.86% -5.66% -0.49% -0.51% 0.35% 3.00%
With optional enhanced death benefit
Unit Value 0.54% 2.98% 3.15% 4.12% 3.09% 3.14% 4.66%
Standardized -8.24% -5.97% -5.81% -0.64% -0.67% 0.17% 2.79%
Actual performance
Unit Value 0.58% 3.10% 3.31% 4.28% 3.24% 3.30% 3.74%
Standardized -8.20% -5.86% -5.66% -0.49% -0.51% 0.35% 1.13%
With optional enhanced death benefit
Unit Value 0.54% 2.98% 3.15% 4.12% 3.09% 3.14% 3.58%
Standardized -8.24% -5.97% -5.81% -0.64% -0.67% 0.17% 0.93%

Annual Performance at NAV

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
8.50% 3.69% 9.36% 0.60% 5.13% -2.69% 0.73% 4.28% -1.05% 10.50%
With optional enhanced death benefit
8.33% 3.53% 9.19% 0.45% 4.97% -2.84% 0.58% 4.12% -1.20% 10.33%

Restated performance

Monthly as of 09/30/20

Unit Value 0.16%
Standardized -8.59%

YTD as of 10/27/20

Unit Value 3.09%
Standardized -5.86%

With optional enhanced death benefit

Monthly as of 09/30/20

Unit Value 0.15%
Standardized -8.60%

YTD as of 10/27/20

Unit Value 2.96%
Standardized -5.98%

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.

Risk Characteristics as of 09/30/20

Avg. Eff. Maturity 8.99
Avg. Eff. Duration 6.42
Avg. Coupon 4.83
Avg. Yield to Maturity 5.68
Alpha (%) --
Beta 1.09
R Squared 0.67
Standard Deviation (3 yrs.) 4.43

Maturity Details

0 to 1 yr. -22.61%
1 to 5 yrs. 81.57%
5 to 10 yrs. 31.83%
10 to 15 yrs. 1.32%
Over 15 yrs. 7.89%

Quality Ratings

AAA 78.70%
AA 7.41%
A 16.05%
BBB 22.50%
BB 3.24%
B 3.68%
CCC and Below 0.89%
Not Rated -32.47%

Holdings

Fnma Fn30 Tba Umbs 02.0000 11/01/2050 19.45%
Fnma Fn30 Tba Umbs 04.0000 10/01/2050 3.93%
Fnma Fn30 Tba Umbs 03.5000 10/01/2050 3.89%
Fnma Fn30 Tba Umbs 03.5000 11/01/2050 2.59%
Gnma Gii30 Tba 03.5000 10/01/2050 2.59%
Fnma Fn30 Tba Umbs 04.5000 10/01/2050 1.77%
Gnma Gii30 Tba 04.0000 10/01/2050 1.74%
Fnma Fn30 Tba Umbs 03.0000 10/01/2050 1.72%
Fnma Fn30 Tba Umbs 06.0000 10/01/2050 0.92%
Bf0101 03.5000 06/01/2056 0.91%
Top 10 holdings, total: 39.51%


Top 10 holdings as of 09/30/20
1: Fnma Fn30 Tba Umbs 02.0000 11/01/2050 19.45%
2: Fnma Fn30 Tba Umbs 04.0000 10/01/2050 3.93%
3: Fnma Fn30 Tba Umbs 03.5000 10/01/2050 3.89%
4: Fnma Fn30 Tba Umbs 03.5000 11/01/2050 2.59%
5: Gnma Gii30 Tba 03.5000 10/01/2050 2.59%
6: Fnma Fn30 Tba Umbs 04.5000 10/01/2050 1.77%
7: Gnma Gii30 Tba 04.0000 10/01/2050 1.74%
8: Fnma Fn30 Tba Umbs 03.0000 10/01/2050 1.72%
9: Fnma Fn30 Tba Umbs 06.0000 10/01/2050 0.92%
10: Bf0101 03.5000 06/01/2056 0.91%
Holdings represent 39.51% of portfolio
Top 10 holdings as of 08/31/20
1: Fnma Fn30 Tba Umbs 02.0000 10/01/2050 5.26%
2: Fnma Fn30 Tba Umbs 02.0000 09/01/2050 4.87%
3: Fnma Fn30 Tba Umbs 03.5000 10/01/2050 3.74%
4: Fnma Fn30 Tba Umbs 04.0000 10/01/2050 2.52%
5: Fnma Fn30 Tba Umbs 03.5000 09/01/2050 2.49%
6: Gnma Gii30 Tba 03.5000 09/01/2050 2.48%
7: Fnma Fn30 Tba Umbs 04.0000 09/01/2050 2.10%
8: Fnma Fn30 Tba Umbs 04.5000 09/01/2050 1.70%
9: Gnma Gii30 Tba 04.0000 09/01/2050 1.68%
10: Fnma Fn30 Tba Umbs 03.0000 09/01/2050 1.66%
Holdings represent 28.50% of portfolio
Top 10 holdings as of 07/31/20
1: Fnma Fn30 Tba Umbs 03.0000 09/01/2050 5.32%
2: Fnma Fn30 Tba Umbs 03.5000 09/01/2050 4.09%
3: Fnma Fn30 Tba Umbs 02.0000 09/01/2050 4.00%
4: Fnma Fn30 Tba Umbs 04.0000 09/01/2050 2.88%
5: Gnma Gii30 Tba 03.5000 08/01/2050 2.45%
6: Fnma Fn30 Tba Umbs 03.5000 08/01/2050 2.04%
7: Fnma Fn30 Tba Umbs 02.5000 09/01/2050 2.03%
8: Fnma Fn30 Tba Umbs 02.0000 08/01/2050 2.01%
9: Fnma Fn30 Tba Umbs 04.5000 08/01/2050 1.67%
10: Fnma Fn30 Tba Umbs 04.0000 08/01/2050 1.65%
Holdings represent 28.14% of portfolio
Top 10 holdings as of 06/30/20
1: Fnma Fn30 Tba Umbs 03.5000 07/01/2050 6.11%
2: Fnma Fn30 Tba Umbs 04.0000 07/01/2050 4.52%
3: Fnma Fn30 Tba Umbs 03.0000 08/01/2050 3.26%
4: Gnma Gii30 Tba 03.5000 07/01/2050 2.45%
5: Fnma Fn30 Tba Umbs 03.0000 07/01/2050 2.04%
6: Fnma Fn30 Tba Umbs 04.5000 07/01/2050 1.67%
7: Gnma Gii30 Tba 04.0000 07/01/2050 1.64%
8: Fnma Fn30 Tba Umbs 02.5000 07/01/2050 1.21%
9: Bf0101 03.5000 06/01/2056 0.87%
10: Fnma Fn30 Tba Umbs 06.0000 07/01/2050 0.86%
Holdings represent 24.63% of portfolio


Sector Weightings as of 09/30/20

Cash Investment Non-Cash Investment Total Portfolio
Weight Spread Duration Weight Spread Duration Weight Spread Duration
Agency pass-through 10.02% 0.45 41.01% 1.58 51.03% 2.03
Investment-grade corporate bonds 31.73% 2.73 0.00% 0.00 31.73% 2.73
Commercial MBS 17.41% 0.43 10.91% 0.09 28.32% 0.52
Agency CMO 15.16% 0.49 0.31% 0.01 15.47% 0.50
Net cash 11.43% 0.00 0.00% 0.00 11.43% 0.00
Residential MBS (non-agency) 11.23% 0.31 0.00% 0.00 11.23% 0.31
Asset-backed securities (ABS) 2.33% 0.08 0.00% 0.00 2.33% 0.08
High-yield corporate bonds 0.69% 0.02 0.00% 0.00 0.69% 0.02
Interest rate swaps 0.00% 0.00 0.00% -0.46 0.00% -0.46
U.S. Treasury/agency 0.00% 0.00 0.00% 1.13 0.00% 1.13

Spread duration is displayed in years and reflects the contribution by sector to the portfolio's total spread duration with the exception of the Treasury and Interest-rate swap sectors where effective duration is displayed. Spread duration estimates the price sensitivity of a specific sector or asset class to a 100 basis-point movement, 1%, (either widening or narrowing) in its yield spread relative to Treasuries. Effective duration provides a measure of a portfolio's interest-rate sensitivity. The longer a portfolio's duration, the more sensitive the portfolio is to shifts in the interest rates. Allocations may not total 100% of net assets because the table includes the notional value of certain derivatives (the economic value for purposes of calculating periodic payment obligations), in addition to the market value of securities.

Consider these risks before investing: Funds that invest in government securities are not guaranteed. Mortgage-backed investments, unlike traditional debt investments, are also subject to prepayment risk, which means that they may increase in value less than other bonds when interest rates decline and decline in value more than other bonds when interest rates rise. Bond investments are subject to interest-rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments). The fund may have to invest the proceeds from prepaid investments, including mortgage-backed investments, in other investments with less attractive terms and yields. Interest-rate risk is generally greater for longer-term bonds, and credit risk is generally greater for below-investment-grade bonds. Risks associated with derivatives include increased investment exposure (which may be considered leverage) and, in the case of over-the-counter instruments, the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations. Unlike bonds, funds that invest in bonds have fees and expenses. The value of investments in the fund’s portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general economic, political, or financial market conditions; investor sentiment and market perceptions; government actions; geopolitical events or changes; and factors related to a specific issuer, geography, industry, or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund’s portfolio holdings. Our investment techniques, analyses, and judgments may not produce the outcome we intend. The investments we select for the fund may not perform as well as other securities that we do not select for the fund. We, or the fund’s other service providers, may experience disruptions or operating errors that could have a negative effect on the fund. You can lose money by investing in the fund. 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.

Credit qualities are shown as a percentage of the fund's net assets. A bond rated BBB or higher (A-3 or higher, for short-term debt) is considered investment grade. This chart reflects the highest security rating provided by one or more of Standard & Poor’s, Moody’s, and Fitch. To-be-announced (TBA) mortgage commitments, if any, are included based on their issuer ratings. Ratings may vary over time. Cash, derivative instruments, and net other assets are shown in the not-rated category. Payables and receivables for TBA mortgage commitments are included in the not-rated category and may result in negative weights. The fund itself has not been rated by an independent rating agency.

Country Allocation as of 09/30/20

United States 94.50%
Canada 1.44%
Bermuda 1.00%
United Kingdom 0.77%
France 0.48%
Switzerland 0.48%
Netherlands 0.46%
Spain 0.29%
Japan 0.19%
 
Other
0.39%
Luxembourg 0.16%
Australia 0.15%
Germany 0.08%

Expenses

Sales Charges/Fees

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

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%