Putnam Allstate Advisor Preferred

Putnam Small Cap Value Subaccount

The subaccount seeks capital appreciation.

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 08/23/19

with optional enhanced death benefits
Unit Value $30.64939 $29.760666
Unit Value Change -0.959279 -0.931594

Lipper ranking ‡ as of 07/31/19

Category: Small-Cap Value Funds

  Percentile ranking Rank/Funds in category
10 yrs. 48% 18/37
1 yr. 79% 32/40
3 yrs. 59% 24/40
5 yrs. 58% 23/39

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 07/31/19

Fiscal Year End December
Asset Class Putnam Allstate Advisor Preferred
Subaccount Status Open to new investors
Number of issues 119
Turnover (fiscal year end) 561%
Net Assets $123M
Inception Date 04/30/99

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 1.81% 15.29% -11.00% 6.00% 2.38% 10.47% 6.67%
Standardized -0.19% 13.29% -12.78% 6.00% 2.38% 10.47% 6.67%
With optional enhanced death benefit
Unit Value 1.78% 15.20% -11.13% 5.84% 2.22% 10.30% 6.51%
Standardized -0.22% 13.20% -12.91% 5.84% 2.22% 10.30% 6.51%
Actual performance
Unit Value 1.81% 15.29% -11.00% 6.00% 2.38% 10.47% 6.67%
Standardized -0.19% 13.29% -12.78% 6.00% 2.38% 10.47% 6.67%
With optional enhanced death benefit
Unit Value -- -- -- -- -- -- --
Standardized -- -- -- -- -- -- --

Annual Performance at NAV

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
29.36% 23.91% -6.30% 15.54% 37.31% 1.73% -5.82% 25.40% 6.10% -21.26%
With optional enhanced death benefit
29.16% 23.72% -6.44% 15.37% 37.10% 1.57% -5.96% 25.21% 5.94% -21.38%

Restated performance

Monthly as of 07/31/19

Unit Value 0.51%
Standardized -1.49%

YTD as of 08/23/19

Unit Value 4.67%
Standardized 2.67%

With optional enhanced death benefit

Monthly as of 07/31/19

Unit Value 0.49%
Standardized -1.51%

YTD as of 08/23/19

Unit Value 4.57%
Standardized 2.57%

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 07/31/19

Alpha (%) -1.68
Beta 1.01
R Squared 0.95
Standard Deviation (3 yrs.) 17.49

Holdings

Top 10 holdings as of 07/31/19

Premier 1.50%
Cedar Fair Lp 1.44%
Mesa Air Group 1.37%
Allete 1.35%
William Lyon Homes 1.33%
Synnex Corp 1.29%
Federal Signal Corp 1.28%
Scorpio Tankers 1.24%
Brookdale Senior Living 1.21%
First Horizon National Corp 1.18%
Top 10 holdings, total: 13.19%

Full Portfolio Holdings as of 06/30/19

PREMIER INC-CLASS A 1.55%
SCORPIO TANKERS INC 1.51%
VERMILION ENERGY INC 1.44%
CEDAR FAIR LP 1.38%
TRONOX HOLDINGS PLC- A 1.35%
WILLIAM LYON HOMES-CL A 1.32%
SYNNEX CORP 1.29%
JABIL INC 1.26%
ALLETE INC 1.23%
MESA AIR GROUP INC 1.22%
BROOKDALE SENIOR LIVING INC 1.16%
PERFICIENT INC 1.15%
VECTRUS INC 1.14%
STERLING BANCORP/DE 1.14%
ZAGG INC 1.13%
ARGO GROUP INTERNATIONAL 1.13%
PORTLAND GENERAL ELECTRIC CO 1.13%
LADDER CAPITAL CORP-REIT 1.11%
UNITIL CORP 1.11%
FEDERAL SIGNAL CORP 1.10%
QTS REALTY TRUST INC-CL A 1.09%
WESCO INTERNATIONAL INC 1.09%
MADISON SQUARE GARDEN CO- A 1.09%
J2 GLOBAL INC 1.09%
CHEMICAL FINANCIAL CORP 1.08%
SP PLUS CORP 1.08%
CACI INTERNATIONAL INC -CL A 1.08%
FIRST HORIZON NATIONAL CORP 1.08%
SYNOVUS FINANCIAL CORP 1.07%
HERMAN MILLER INC 1.05%
HANCOCK WHITNEY CORP 1.04%
PARSONS CORP 1.04%
HERITAGE INSURANCE HOLDINGS 1.02%
COLUMBIA PROPERTY TRUST INC 1.02%
GRANITE POINT MORTGAGE TRUST 1.02%
SPIRIT REALTY CAPITAL INC 1.02%
IBERIABANK CORP 1.00%
REXNORD CORP 1.00%
PROPETRO HOLDING CORP 0.98%
WILLSCOT CORP 0.98%
MAGELLAN HEALTH INC 0.97%
PAR PACIFIC HOLDINGS INC 0.97%
BIG LOTS INC 0.96%
MAGNOLIA OIL & GAS CORP - A 0.96%
UNIVEST FINANCIAL CORP 0.94%
DINE BRANDS GLOBAL INC 0.94%
GAMING AND LEISURE PROPERTIE 0.92%
WALKER & DUNLOP INC 0.91%
WESTERN ALLIANCE BANCORP 0.91%
BOISE CASCADE CO 0.89%
MYR GROUP INC/DELAWARE 0.88%
IMAX CORP 0.88%
OMNOVA SOLUTIONS INC 0.88%
WINTRUST FINANCIAL CORP 0.86%
CHATHAM LODGING TRUST 0.86%
DONNELLEY FINANCIAL SOLUTION 0.85%
ENCANA CORP 0.84%
NETGEAR INC 0.84%
JETBLUE AIRWAYS CORP 0.84%
VERSO CORP - A 0.84%
CLARUS CORP 0.83%
HEIDRICK & STRUGGLES INTL 0.82%
TRIPLEPOINT VENTURE GROWTH B 0.82%
ARCH COAL INC - A 0.82%
CHEESECAKE FACTORY INC/THE 0.82%
LUMENTUM HOLDINGS INC 0.82%
COHU INC 0.82%
STERLING CONSTRUCTION CO 0.80%
COOPER TIRE & RUBBER 0.80%
APOGEE ENTERPRISES INC 0.79%
PREFERRED BANK/LOS ANGELES 0.79%
PHOTRONICS INC 0.79%
HOMESTREET INC 0.79%
FIRST MERCHANTS CORP 0.78%
TPG SPECIALTY LENDING INC 0.76%
AMERIS BANCORP 0.76%
COLUMBUS MCKINNON CORP/NY 0.76%
SHOE CARNIVAL INC 0.74%
MEET GROUP INC/THE 0.73%
EAGLE MATERIALS INC 0.72%
QUANEX BUILDING PRODUCTS 0.72%
OLIN CORP 0.72%
BLOOMIN' BRANDS INC 0.70%
PALOMAR HOLDINGS INC 0.70%
CONNECTONE BANCORP INC 0.69%
ATLANTIC UNION BANKSHARES CO 0.69%
MAYVILLE ENGINEERING CO INC 0.68%
PAPA JOHN S INTL 0.67%
FRANKLIN FINANCIAL NETWORK 0.66%
OFG BANCORP 0.65%
SHENANDOAH TELECOMMUNICATION 0.65%
CAPITOL INVESTMENT CORP IV-A 0.64%
BAIN CAPITAL SPECIALTY FINAN 0.63%
CECO ENVIRONMENTAL CORP 0.63%
INVESTORS BANCORP INC 0.63%
ACADIA HEALTHCARE CO INC 0.63%
ARES CAPITAL CORP 0.59%
HERCULES CAPITAL INC 0.58%
QUAD GRAPHICS INC 0.56%
RANGE RESOURCES CORP 0.51%
CARS.COM INC 0.51%
NEWMARK GROUP INC-CLASS A 0.50%
LIONS GATE ENTERTAINMENT-A 0.49%
CRAFT BREW ALLIANCE INC 0.48%
MASTERCRAFT BOAT HOLDINGS IN 0.48%
CONSOLIDATED WATER CO-ORD SH 0.48%
SELECT ENERGY SERVICES INC-A 0.46%
OCEANFIRST FINANCIAL CORP 0.42%
AMERICAN EAGLE OUTFITTERS 0.41%
CAMDEN NATIONAL CORP 0.40%
SAIA INC 0.40%
RLJ LODGING TRUST 0.40%
FIRST DEFIANCE FINL CORP 0.36%
STORE CAPITAL CORP 0.33%
MANITEX INTERNATIONAL INC 0.30%
COASTAL FINANCIAL CORP/WA 0.17%
BEL FUSE INC-CL B 0.15%
CAPITOL INVESTMENT CO-CW25 0.03%
ADVANSIX INC 0.02%
BANCTEC INC-144A CONTINGENT VALUE RIGHTS 0.00%
FERROGLOBE REPRESENTATION & 0.00%

Prior top 10 holdings

Top 10 holdings as of 07/31/19
1: Premier 1.50%
2: Cedar Fair Lp 1.44%
3: Mesa Air Group 1.37%
4: Allete 1.35%
5: William Lyon Homes 1.33%
6: Synnex Corp 1.29%
7: Federal Signal Corp 1.28%
8: Scorpio Tankers 1.24%
9: Brookdale Senior Living 1.21%
10: First Horizon National Corp 1.18%
Holdings represent 13.19% of portfolio
Top 10 holdings as of 06/30/19
1: Premier 1.55%
2: Scorpio Tankers 1.51%
3: Vermilion Energy 1.44%
4: Cedar Fair Lp 1.38%
5: Tronox Holdings 1.35%
6: William Lyon Homes 1.32%
7: Synnex Corp 1.29%
8: Jabil 1.26%
9: Allete 1.23%
10: Mesa Air Group 1.22%
Holdings represent 13.55% of portfolio
Top 10 holdings as of 05/31/19
1: Cedar Fair Lp 1.55%
2: Premier 1.52%
3: Vermilion Energy 1.46%
4: William Lyon Homes 1.41%
5: Scorpio Tankers 1.40%
6: Mesa Air Group 1.32%
7: Caci International 1.24%
8: Sp Plus Corp 1.24%
9: Allete 1.22%
10: Hancock Whitney Corp 1.22%
Holdings represent 13.58% of portfolio
Top 10 holdings as of 04/30/19
1: Vermilion Energy 1.60%
2: Cedar Fair Lp 1.48%
3: Scorpio Tankers 1.48%
4: Tronox Holdings 1.36%
5: Synnex Corp 1.33%
6: Iberiabank Corp 1.27%
7: Hancock Whitney Corp 1.26%
8: Sp Plus Corp 1.25%
9: Premier 1.24%
10: Perficient 1.23%
Holdings represent 13.50% of portfolio

Portfolio Composition as of 07/31/19

Common stock 98.52%
Cash and net other assets 1.48%

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 07/31/19

Financials 29.63%
Industrials 16.49%
Consumer discretionary 9.58%
Information technology 9.41%
Energy 7.79%
Real estate 7.27%
Materials 5.44%
Communication services 4.58%
Health care 4.20%
 
Other
5.61%
Utilities 4.13%
Cash and net other assets 1.48%

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 2.00%
2 1.00%
3+ 0.00%