Putnam Allstate Advisor Plus

Putnam Small Cap Value Subaccount

The subaccount seeks capital appreciation.

Putnam Small Cap Value Subaccount

Fund description

The subaccount pursues its objective of long-term capital appreciation by investing in stocks of small companies that are undergoing positive changes. In accordance with its value strategy, it seeks holdings that have below-average price/earnings ratios and that are priced below their long-term business value. The subaccount's focus on low valuation helps to manage the risk associated with investing in small companies.

Sales story

Pursuing capital appreciation through undervalued small companiesSmall companies: Often overlooked by Wall Street analysts, the stocks of small companies can represent attractive opportunities to firms with strong research capabilities.A value strategy: The fund focuses on finding small companies whose stocks are priced below their long-term potential, and where there may be a catalyst for positive change.Rigorous research: The portfolio managers and a team of senior research analysts offer the collaboration of a boutique with the extensive resources of a large, global firm.

Management team

Daily pricing as of 02/27/20

with optional enhanced death benefits
Unit Value $32.421054 $31.448263
Unit Value Change -1.227867 -1.191164

Lipper ranking ‡ as of 01/31/20

Category: Small-Cap Value Funds

  Percentile ranking Rank/Funds in category
10 yrs. 48% 16/33
1 yr. 46% 17/36
3 yrs. 79% 29/36
5 yrs. 65% 24/36

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 01/31/20

Fiscal Year End December
Asset Class Putnam Allstate Advisor Plus
Subaccount Status Open to new investors
Number of issues 112
Turnover (fiscal year end) 561%
Net Assets $117M
Inception Date 04/30/99

Performance

Performance as of 12/31/19

Annualized Performance Last Quarter Year
to Date		 1 yr. 3 yrs. 5 yrs. 10 yrs. Life of
subaccount
Restated performance
Unit Value 8.96% 22.25% 22.25% 0.74% 3.86% 8.55% 6.86%
Standardized 0.96% 14.25% 14.25% -1.96% 2.81% 8.55% 6.86%
With optional enhanced death benefit
Unit Value 8.92% 22.07% 22.07% 0.59% 3.71% 8.38% 6.70%
Standardized 0.92% 14.07% 14.07% -2.12% 2.65% 8.38% 6.70%
Actual performance
Unit Value 8.96% 22.25% 22.25% 0.74% 3.86% 8.55% 6.84%
Standardized 0.96% 14.25% 14.25% -1.96% 2.81% 8.55% 6.84%
With optional enhanced death benefit
Unit Value 8.92% 22.07% 22.07% 0.59% 3.71% 8.38% 6.68%
Standardized 0.92% 14.07% 14.07% -2.12% 2.65% 8.38% 6.68%

Annual Performance at NAV

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
23.97% -6.25% 15.60% 37.38% 1.78% -5.77% 25.46% 6.15% -21.22% 22.25%
With optional enhanced death benefit
23.78% -6.39% 15.43% 37.17% 1.62% -5.92% 25.27% 5.99% -21.34% 22.07%

Restated performance

Monthly as of 01/31/20

Unit Value -4.53%
Standardized -12.17%

YTD as of 02/27/20

Unit Value -13.63%
Standardized -20.54%

With optional enhanced death benefit

Monthly as of 01/31/20

Unit Value -4.54%
Standardized -12.18%

YTD as of 02/27/20

Unit Value -13.65%
Standardized -20.56%

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 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 01/31/20

Alpha (%) -2.32
Beta 1.03
R Squared 0.94
Standard Deviation (3 yrs.) 17.04

Holdings

Sterling Bancorp/De 1.34%
Investors Bancorp 1.33%
Spirit Realty Capital 1.30%
Cars.Com 1.29%
Palomar Holdings 1.28%
Brookdale Senior Living 1.27%
Magellan Health 1.27%
Synnex Corp 1.25%
Photronics 1.24%
Qts Realty Trust 1.23%
Top 10 holdings, total: 12.80%

Top 10 holdings as of 01/31/20
1: Sterling Bancorp/De 1.34%
2: Investors Bancorp 1.33%
3: Spirit Realty Capital 1.30%
4: Cars.Com 1.29%
5: Palomar Holdings 1.28%
6: Brookdale Senior Living 1.27%
7: Magellan Health 1.27%
8: Synnex Corp 1.25%
9: Photronics 1.24%
10: Qts Realty Trust 1.23%
Holdings represent 12.80% of portfolio
Top 10 holdings as of 12/31/19
1: Scorpio Tankers 1.65%
2: Photronics 1.44%
3: Magellan Health 1.35%
4: Tronox Holdings 1.31%
5: Brookdale Senior Living 1.28%
6: Sterling Bancorp/De 1.25%
7: Magnolia Oil Gas Corp 1.25%
8: First Merchants Corp 1.24%
9: Investors Bancorp 1.24%
10: Oriental Finl Group Com 1.23%
Holdings represent 13.24% of portfolio
Top 10 holdings as of 11/30/19
1: Palomar Holdings 1.48%
2: Scorpio Tankers 1.47%
3: Magellan Health 1.37%
4: Tronox Holdings 1.35%
5: Qts Realty Trust 1.32%
6: Cars.Com 1.31%
7: Investors Bancorp 1.28%
8: Brookdale Senior Living 1.28%
9: Allete 1.25%
10: Sterling Bancorp/De 1.24%
Holdings represent 13.35% of portfolio
Top 10 holdings as of 10/31/19
1: Qts Realty Trust 1.50%
2: William Lyon Homes 1.46%
3: Allete 1.40%
4: Scorpio Tankers 1.34%
5: Investors Bancorp 1.31%
6: Sp Plus Corp 1.31%
7: Palomar Holdings 1.30%
8: Senior Housing Properties Trust 1.30%
9: Brookdale Senior Living 1.27%
10: Vectrus 1.26%
Holdings represent 13.45% of portfolio

Portfolio Composition as of 01/31/20

Common stock 98.66%
Cash and net other assets 1.34%

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 01/31/20

Financials 26.65%
Industrials 15.46%
Information technology 11.59%
Real estate 9.71%
Consumer discretionary 9.37%
Energy 5.86%
Materials 5.65%
Communication services 4.89%
Health care 4.54%
 
Other		 6.28%
Utilities 3.85%
Cash and net other assets 1.34%
Consumer staples 1.09%

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 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%