Putnam Allstate Advisor Plus

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 10/19/17

with optional enhanced death benefits
Unit Value $14.48399 $14.099192
Unit Value Change 0.024795 0.024078

Lipper ranking ‡ as of 09/30/17

Category: International Large-Cap Value

  Percentile ranking Rank/Funds in category
10 yrs. 62% 11/17
1 yr. 57% 13/22
3 yrs. 22% 5/22
5 yrs. 32% 7/21

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 09/30/17

Fiscal Year End December
Asset Class Putnam Allstate Advisor Plus
Subaccount Status Open to new investors
Number of issues 86
Turnover (fiscal year end) 23%
Net Assets $88M
Inception Date 01/02/97

Performance

Performance as of 09/30/17

Annualized Performance Last Quarter Year
to Date
1 yr. 3 yrs. 5 yrs. 10 yrs. Life of
subaccount
Restated performance
Unit Value 5.88% 20.12% 19.26% 2.53% 5.66% -1.88% 3.78%
Standardized -2.12% 12.12% 11.26% -0.07% 4.68% -1.88% 3.78%
With optional enhanced death benefit
Unit Value 5.84% 19.98% 19.08% 2.38% 5.50% -2.03% 3.62%
Standardized -2.16% 11.98% 11.08% -0.23% 4.51% -2.03% 3.62%
Actual performance
Unit Value 5.88% 20.12% 19.26% 2.53% 5.66% -1.88% 1.99%
Standardized -2.12% 12.12% 11.26% -0.07% 4.68% -1.88% 1.99%
With optional enhanced death benefit
Unit Value 5.84% 19.98% 19.08% 2.38% 5.50% -2.03% 1.84%
Standardized -2.16% 11.98% 11.08% -0.23% 4.51% -2.03% 1.84%

Annual Performance at NAV

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
5.29% -46.89% 24.17% 5.41% -15.16% 19.75% 20.26% -10.94% -3.57% -0.51%
With optional enhanced death benefit
5.12% -46.97% 23.98% 5.25% -15.29% 19.57% 20.07% -11.07% -3.72% -0.66%

Restated performance

Monthly as of 09/30/17

Unit Value 3.06%
Standardized -4.94%

YTD as of 10/19/17

Unit Value 20.97%
Standardized 12.97%

With optional enhanced death benefit

Monthly as of 09/30/17

Unit Value 3.05%
Standardized -4.95%

YTD as of 10/19/17

Unit Value 20.82%
Standardized 12.82%

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.

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 09/30/17

Alpha (%) 1.11
Beta 0.87
R Squared 0.91
Standard Deviation (3 yrs.) 11.80

Holdings

Top 10 holdings as of 09/30/17

Ing Groep Nv 4.22%
Royal Dutch Shell 3.14%
Sanofi 2.70%
Siemens Ag 2.36%
Societe Generale 2.13%
Australia New Zealand Banking Group 2.12%
Vinci 2.11%
Prudential 2.03%
Novartis Ag 1.96%
Suncor Energy 1.94%
Top 10 holdings, total: 24.71%

Equity Holdings as of 06/30/17

ING GROEP NV-CVA 4.10%
SANOFI 2.70%
SIEMENS AG 2.42%
AUST AND NZ BANKING GROUP 2.12%
PHILIP MORRIS INTERNATIONAL 2.08%
SOCIETE GENERALE SA 2.06%
PRUDENTIAL PLC 2.04%
NOVARTIS AG-REG 1.99%
VINCI SA 1.99%
VODAFONE GROUP PLC 1.92%
NISSAN MOTOR CO LTD 1.86%
ROYAL DUTCH SHELL PLC-A SHS 1.83%
SUNCOR ENERGY INC 1.70%
AXA SA 1.69%
ASTRAZENECA PLC 1.68%
CHALLENGER LTD 1.68%
NIPPON TELEGRAPH & TELEPHONE 1.64%
SUMITOMO MITSUI FINANCIAL GR 1.64%
WPP PLC 1.60%
AIA GROUP LTD 1.49%
MITSUBISHI CORP 1.49%
SAMSUNG ELECTRONICS CO LTD 1.49%
CHUBB LTD 1.42%
KERRY GROUP PLC-A 1.36%
RIO TINTO PLC 1.35%
BAYER AG-REG 1.30%
IMPERIAL BRANDS PLC 1.29%
AKZO NOBEL 1.27%
NINTENDO CO LTD 1.21%
HIBERNIA REIT PLC 1.19%
SCOR SE 1.16%
VEOLIA ENVIRONNEMENT 1.16%
SPARK NEW ZEALAND LTD 1.15%
INSURANCE AUSTRALIA GROUP LTD 1.13%
NOKIA OYJ 1.11%
SSE PLC 1.11%
TOTAL SA 1.11%
DANSKE BANK A/S 1.08%
ROYAL DUTCH SHELL PLC-B SHS 1.05%
TDK CORP 1.04%
LANXESS AG 1.00%
JAPAN AIRLINES CO LTD 0.97%
ALLIANZ SE-REG 0.96%
MURATA MANUFACTURING CO LTD 0.94%
YAMAHA MOTOR CO LTD 0.92%
ORIX CORP 0.91%
EURAZEO SA 0.90%
MITSUI FUDOSAN CO LTD 0.90%
COMPAGNIE DE SAINT-GOBAIN 0.89%
SKANDINAVISKA ENSKILDA BAN-A 0.89%
WOLSELEY PLC 0.88%
ITOCHU CORP 0.87%
CRH PLC 0.86%
HOYA CORP 0.86%
FIAT CHRYSLER AUTOMOBILES NV 0.85%
SWEDBANK AB - A SHARES 0.85%
MIZUHO FINANCIAL GROUP INC 0.84%
NATIXIS 0.83%
ORKLA ASA 0.82%
BCE INC 0.81%
PANASONIC CORP 0.81%
KONINKLIJKE AHOLD DELHAIZE N 0.79%
COM HEM HOLDING AB 0.78%
NSK LTD 0.78%
AENA SA 0.76%
RWE AG 0.76%
UBS GROUP AG-REG 0.76%
DNB NOR ASA 0.74%
ENCANA CORP 0.74%
SEVEN & I HOLDINGS CO LTD 0.74%
GLENCORE PLC 0.73%
BANK OF IRELAND 0.72%
VALEO SA 0.72%
HENKEL AG & CO KGAA VORZUG 0.70%
SHISEIDO CO LTD 0.69%
SUMITOMO WAREHOUSE CO LTD 0.67%
LAFARGEHOLCIM LTD-REG 0.66%
TELECOM ITALIA-RSP 0.66%
DALATA HOTEL GROUP PLC 0.65%
CREDIT SUISSE GROUP AG-REG 0.55%
KDDI CORP 0.55%
MAGNA INTERNATIONAL INC 0.50%
ADMIRAL GROUP PLC 0.43%
LLOYDS BANKING GROUP PLC 0.43%

Full Portfolio Holdings as of 06/30/17

ING GROEP NV-CVA 4.10%
SANOFI 2.70%
SIEMENS AG 2.42%
AUST AND NZ BANKING GROUP 2.12%
PHILIP MORRIS INTERNATIONAL 2.08%
SOCIETE GENERALE SA 2.06%
PRUDENTIAL PLC 2.04%
NOVARTIS AG-REG 1.99%
VINCI SA 1.99%
VODAFONE GROUP PLC 1.92%
NISSAN MOTOR CO LTD 1.86%
ROYAL DUTCH SHELL PLC-A SHS 1.83%
SUNCOR ENERGY INC 1.70%
AXA SA 1.69%
ASTRAZENECA PLC 1.68%
CHALLENGER LTD 1.68%
NIPPON TELEGRAPH & TELEPHONE 1.64%
SUMITOMO MITSUI FINANCIAL GR 1.64%
WPP PLC 1.60%
AIA GROUP LTD 1.49%
MITSUBISHI CORP 1.49%
SAMSUNG ELECTRONICS CO LTD 1.49%
CHUBB LTD 1.42%
KERRY GROUP PLC-A 1.36%
RIO TINTO PLC 1.35%
BAYER AG-REG 1.30%
IMPERIAL BRANDS PLC 1.29%
AKZO NOBEL 1.27%
NINTENDO CO LTD 1.21%
HIBERNIA REIT PLC 1.19%
SCOR SE 1.16%
VEOLIA ENVIRONNEMENT 1.16%
SPARK NEW ZEALAND LTD 1.15%
INSURANCE AUSTRALIA GROUP LTD 1.13%
NOKIA OYJ 1.11%
SSE PLC 1.11%
TOTAL SA 1.11%
DANSKE BANK A/S 1.08%
ROYAL DUTCH SHELL PLC-B SHS 1.05%
TDK CORP 1.04%
LANXESS AG 1.00%
JAPAN AIRLINES CO LTD 0.97%
ALLIANZ SE-REG 0.96%
MURATA MANUFACTURING CO LTD 0.94%
YAMAHA MOTOR CO LTD 0.92%
ORIX CORP 0.91%
EURAZEO SA 0.90%
MITSUI FUDOSAN CO LTD 0.90%
COMPAGNIE DE SAINT-GOBAIN 0.89%
SKANDINAVISKA ENSKILDA BAN-A 0.89%
WOLSELEY PLC 0.88%
ITOCHU CORP 0.87%
CRH PLC 0.86%
HOYA CORP 0.86%
FIAT CHRYSLER AUTOMOBILES NV 0.85%
SWEDBANK AB - A SHARES 0.85%
MIZUHO FINANCIAL GROUP INC 0.84%
NATIXIS 0.83%
ORKLA ASA 0.82%
BCE INC 0.81%
PANASONIC CORP 0.81%
KONINKLIJKE AHOLD DELHAIZE N 0.79%
COM HEM HOLDING AB 0.78%
NSK LTD 0.78%
AENA SA 0.76%
RWE AG 0.76%
UBS GROUP AG-REG 0.76%
DNB NOR ASA 0.74%
ENCANA CORP 0.74%
SEVEN & I HOLDINGS CO LTD 0.74%
GLENCORE PLC 0.73%
BANK OF IRELAND 0.72%
VALEO SA 0.72%
HENKEL AG & CO KGAA VORZUG 0.70%
SHISEIDO CO LTD 0.69%
SUMITOMO WAREHOUSE CO LTD 0.67%
LAFARGEHOLCIM LTD-REG 0.66%
TELECOM ITALIA-RSP 0.66%
DALATA HOTEL GROUP PLC 0.65%
CREDIT SUISSE GROUP AG-REG 0.55%
KDDI CORP 0.55%
MAGNA INTERNATIONAL INC 0.50%
ADMIRAL GROUP PLC 0.43%
LLOYDS BANKING GROUP PLC 0.43%
VIVA ENERGY REIT 0.10%
CHF/USD 09/20/2017 JPMCB 0.04%
JPY/USD 08/16/2017 GSFX 0.03%
GBP/USD 09/20/2017 JPMCB 0.02%
AUD/USD 07/19/2017 BANKAM 0.01%
GBP/USD 09/20/2017 BANKAM 0.01%
GBP/USD 09/20/2017 CITI 0.01%
SEK/USD 09/20/2017 CSI-FX 0.01%
SGD/USD 08/16/2017 JPMCB 0.01%
AUD/USD 07/19/2017 CITI 0.00%
AUD/USD 07/19/2017 SSBT 0.00%
CAD/USD 07/19/2017 BANKAM 0.00%
CAD/USD 07/19/2017 BCAP-FX 0.00%
CAD/USD 07/19/2017 CITI 0.00%
CAD/USD 07/19/2017 SSBT 0.00%
CAD/USD 07/19/2017 UBS 0.00%
CANADIAN DOLLAR ACCOUNT 0.00%
CNH/USD 08/16/2017 GSFX 0.00%
DKK/USD 09/20/2017 CITI 0.00%
EUR/USD 09/20/2017 BANKAM 0.00%
EUR/USD 09/20/2017 HSBCB 0.00%
HKD/USD 08/16/2017 BANKAM 0.00%
HKD/USD 08/16/2017 BCAP-FX 0.00%
ILS/USD 07/19/2017 SSBT 0.00%
JPY/USD 08/16/2017 CITI 0.00%
JPY/USD 08/16/2017 JPMCB 0.00%
JPY/USD 08/16/2017 SSBT 0.00%
JPY/USD 08/16/2017 WPAC 0.00%
KRW/USD 08/16/2017 JPMCB 0.00%
NOK/USD 09/20/2017 JPMCB 0.00%
NZD/USD 07/19/2017 BANKAM 0.00%
NZD/USD 07/19/2017 JPMCB 0.00%
POUND STERLING CALL ACCOUNT 0.00%
SEK/USD 09/20/2017 JPMCB 0.00%
THE EURO EUR CALL ACCOUNT 0.00%
AUD/USD 07/19/2017 UBS -0.01%
EUR/USD 09/20/2017 CITI -0.01%
GBP/USD 09/20/2017 SSBT -0.01%
EUR/USD 09/20/2017 GSFX -0.03%

Prior top 10 holdings

Top 10 holdings as of 09/30/17
1: Ing Groep Nv 4.22%
2: Royal Dutch Shell 3.14%
3: Sanofi 2.70%
4: Siemens Ag 2.36%
5: Societe Generale 2.13%
6: Australia New Zealand Banking Group 2.12%
7: Vinci 2.11%
8: Prudential 2.03%
9: Novartis Ag 1.96%
10: Suncor Energy 1.94%
Holdings represent 24.71% of portfolio
Top 10 holdings as of 08/31/17
1: Ing Groep Nv 4.20%
2: Royal Dutch Shell 2.98%
3: Sanofi 2.72%
4: Siemens Ag 2.28%
5: Australia New Zealand Banking Group 2.24%
6: Vinci 2.13%
7: Societe Generale 2.13%
8: Prudential 2.07%
9: Novartis Ag 2.01%
10: Vodafone Group 1.92%
Holdings represent 24.68% of portfolio
Top 10 holdings as of 07/31/17
1: Ing Groep Nv 4.35%
2: Royal Dutch Shell 2.99%
3: Sanofi 2.63%
4: Siemens Ag 2.33%
5: Australia New Zealand Banking Group 2.22%
6: Societe Generale 2.19%
7: Prudential 2.11%
8: Vinci 2.04%
9: Novartis Ag 2.00%
10: Vodafone Group 1.93%
Holdings represent 24.79% of portfolio
Top 10 holdings as of 06/30/17
1: Ing Groep Nv 4.10%
2: Royal Dutch Shell 2.88%
3: Sanofi 2.70%
4: Siemens Ag 2.42%
5: Australia New Zealand Banking Group 2.12%
6: Philip Morris International 2.08%
7: Societe Generale 2.06%
8: Prudential 2.04%
9: Novartis Ag 1.99%
10: Vinci 1.99%
Holdings represent 24.38% of portfolio

Portfolio Composition as of 09/30/17

Common stock 98.00%
Cash and net other assets 2.00%

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 09/30/17

Financials 31.28%
Industrials 14.72%
Health care 8.41%
Energy 7.17%
Telecommunication services 7.12%
Consumer discretionary 6.54%
Consumer staples 6.27%
Information technology 5.62%
Materials 5.60%
 
Other
7.27%
Utilities 3.08%
Real estate 2.19%
Cash and net other assets 2.00%

Country Allocation as of 09/30/17

Japan 20.10%
France 16.11%
United Kingdom 15.44%
Germany 7.21%
Netherlands 6.27%
Ireland 5.10%
Australia 4.80%
Canada 4.26%
Switzerland 3.95%
 
Other
16.76%
Sweden 2.60%
United States 2.36%
Cash and net other assets 2.00%
Norway 1.63%
South Korea 1.54%
Hong Kong 1.44%
Italy 1.35%
Denmark 1.07%
New Zealand 1.05%
Finland 1.03%
Spain 0.69%

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 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%