Putnam Allstate Advisor Preferred

Putnam Global Utilities Subaccount

The subaccount seeks capital growth and current income.

Fund description

The subaccount pursues its objective of growth and income by targeting a wide range of utilities, including natural gas, electric, and communication services companies. By investing in stocks and bonds of well-managed utilities that Putnam believes are priced below their underlying worth, the subaccount seeks consistent performance in all market environments.

Sales story

Investing in the utilities sectorA dynamic sector: From distribution to power storage, the fund seeks out companies that profit from the growth of and demand for utilities.A diversified approach: The fund may invest in domestic and foreign markets, and companies of different sizes across several industries and varying degrees of regulation.Actively managed: Unlike passively managed ETFs, Putnam global sector funds combine rigorous fundamental research and disciplined quantitative analysis with macroeconomic views.

Management team

Daily pricing as of 02/15/19

with optional enhanced death benefits
Unit Value $14.383806 $13.977625
Unit Value Change 0.048398 0.046975

The fund concentrates its investments in one region or in one sector and involves more risk than a fund that invests more broadly. 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.

Growth investing targets companies with above-average earnings that may be subject to price volatility if earnings expectations are not met.

‡ 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 01/31/19

Fiscal Year End December
Asset Class Putnam Allstate Advisor Preferred
Subaccount Status Open to new investors
Number of issues 38
Turnover (fiscal year end) 83%
Net Assets $62M
Inception Date 05/01/92

Performance

Performance as of 12/31/18

Annualized Performance Last Quarter Year
to Date
1 yr. 3 yrs. 5 yrs. 10 yrs. Life of
subaccount
Restated performance
Unit Value -1.85% -2.12% -2.12% 5.66% 3.33% 2.97% 4.24%
Standardized -3.82% -4.08% -4.08% 5.66% 3.33% 2.97% 4.24%
With optional enhanced death benefit
Unit Value -1.89% -2.27% -2.27% 5.50% 3.17% 2.81% 4.08%
Standardized -3.85% -4.22% -4.22% 5.50% 3.17% 2.81% 4.08%
Actual performance
Unit Value -1.85% -2.12% -2.12% 5.66% 3.33% 2.97% 1.72%
Standardized -3.82% -4.08% -4.08% 5.66% 3.33% 2.97% 1.72%
With optional enhanced death benefit
Unit Value -1.89% -2.27% -2.27% 5.50% 3.17% 2.81% 1.53%
Standardized -3.85% -4.22% -4.22% 5.50% 3.17% 2.81% 1.53%

Annual Performance at NAV

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
5.59% 0.15% -6.96% 3.30% 11.94% 12.69% -11.40% 0.30% 20.16% -2.12%
With optional enhanced death benefit
5.42% 0.00% -7.11% 3.14% 11.77% 12.52% -11.54% 0.15% 19.98% -2.27%

Restated performance

Monthly as of 01/31/19

Unit Value 5.48%
Standardized 3.48%

YTD as of 02/15/19

Unit Value 6.32%
Standardized 4.32%

With optional enhanced death benefit

Monthly as of 01/31/19

Unit Value 5.47%
Standardized 3.47%

YTD as of 02/15/19

Unit Value 6.30%
Standardized 4.30%

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 concentrates its investments in one region or in one sector and involves more risk than a fund that invests more broadly. 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.

Growth investing targets companies with above-average earnings that may be subject to price volatility if earnings expectations are not met.

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.


Holdings

Top 10 holdings as of 01/31/19

Nextera Energy 9.18%
American Electric Power 7.08%
Exelon Corp 5.38%
Enel Spa 4.61%
Sempra Energy 4.00%
Enterprise Products Partn 3.90%
Nrg Energy 3.89%
Dominion Energy 3.59%
Duke Energy Corp 3.51%
Eversource Energy 3.48%
Top 10 holdings, total: 48.62%

Equity Holdings as of 12/31/18

NEXTERA ENERGY INC 9.31%
AMERICAN ELECTRIC POWER 7.35%
EXELON CORP 5.30%
DOMINION ENERGY INC 4.78%
ENEL SPA 4.40%
DUKE ENERGY CORP 4.13%
NRG ENERGY INC 4.05%
EVERSOURCE ENERGY 3.41%
NATIONAL GRID PLC 3.21%
SSE PLC 3.13%
FIRSTENERGY CORP 3.10%
VEOLIA ENVIRONNEMENT 3.08%
ENTERPRISE PRODUCTS PARTNERS 3.01%
IBERDROLA SA 2.97%
SOUTHERN CO/THE 2.81%
CMS ENERGY CORP 2.77%
FORTUM OYJ 2.70%
NATURGY ENERGY GROUP SA 2.36%
AMEREN CORPORATION 2.30%
CENTERPOINT ENERGY INC 2.29%
SEMPRA ENERGY 2.11%
EDISON INTERNATIONAL 2.10%
PUBLIC SERVICE ENTERPRISE GP 2.02%
KINDER MORGAN INC 1.99%
KANSAI ELECTRIC POWER CO INC 1.49%
TOKYO GAS CO LTD 1.37%
E.ON SE 1.26%
UNIPER SE 1.13%
CK INFRASTRUCTURE HOLDINGS L 1.10%
CHUBU ELECTRIC POWER CO INC 1.08%
WEC ENERGY GROUP INC 0.74%
HONG KONG & CHINA GAS 0.73%
CLP HOLDINGS LTD 0.66%
ENGIE 0.61%
CHINA WATER AFFAIRS GROUP 0.53%
P G & E CORP 0.52%
ELECTRIC POWER DEVELOPMENT C 0.51%
ORSTED A/S 0.40%

Full Portfolio Holdings as of 12/31/18

NEXTERA ENERGY INC 9.31%
AMERICAN ELECTRIC POWER 7.35%
EXELON CORP 5.30%
DOMINION ENERGY INC 4.78%
ENEL SPA 4.40%
DUKE ENERGY CORP 4.13%
NRG ENERGY INC 4.05%
EVERSOURCE ENERGY 3.41%
NATIONAL GRID PLC 3.21%
SSE PLC 3.13%
FIRSTENERGY CORP 3.10%
VEOLIA ENVIRONNEMENT 3.08%
ENTERPRISE PRODUCTS PARTNERS 3.01%
IBERDROLA SA 2.97%
SOUTHERN CO/THE 2.81%
CMS ENERGY CORP 2.77%
FORTUM OYJ 2.70%
NATURGY ENERGY GROUP SA 2.36%
AMEREN CORPORATION 2.30%
CENTERPOINT ENERGY INC 2.29%
SEMPRA ENERGY 2.11%
EDISON INTERNATIONAL 2.10%
PUBLIC SERVICE ENTERPRISE GP 2.02%
KINDER MORGAN INC 1.99%
KANSAI ELECTRIC POWER CO INC 1.49%
TOKYO GAS CO LTD 1.37%
E.ON SE 1.26%
UNIPER SE 1.13%
CK INFRASTRUCTURE HOLDINGS L 1.10%
CHUBU ELECTRIC POWER CO INC 1.08%
WEC ENERGY GROUP INC 0.74%
HONG KONG & CHINA GAS 0.73%
CLP HOLDINGS LTD 0.66%
ENGIE 0.61%
CHINA WATER AFFAIRS GROUP 0.53%
P G & E CORP 0.52%
ELECTRIC POWER DEVELOPMENT C 0.51%
ORSTED A/S 0.40%
EUR/USD 03/20/2019 JPMCB 0.02%
DKK/USD 03/20/2019 CITI 0.01%
EUR/USD 03/20/2019 GSFX 0.01%
GBP/USD 03/20/2019 JPMCB 0.01%
AUD/USD 01/16/2019 BANKAM 0.00%
AUD/USD 01/16/2019 CITI 0.00%
AUD/USD 01/16/2019 UBS 0.00%
CAD/USD 01/16/2019 CITI 0.00%
CAD/USD 01/16/2019 SSBT 0.00%
CNH/USD 02/20/2019 GSFX 0.00%
GBP/USD 03/20/2019 SSBT 0.00%
HKD/USD 02/20/2019 BCAP-FX 0.00%
JPY/USD 02/20/2019 GSFX 0.00%
JPY/USD 02/20/2019 JPMCB 0.00%
JPY/USD 02/20/2019 SSBT 0.00%
NZD/USD 01/16/2019 GSFX 0.00%
NZD/USD 01/16/2019 HSBCB 0.00%
CAD/USD 01/16/2019 JPMCB -0.01%
GBP/USD 03/20/2019 BCAP-FX -0.01%

Prior top 10 holdings

Top 10 holdings as of 01/31/19
1: Nextera Energy 9.18%
2: American Electric Power 7.08%
3: Exelon Corp 5.38%
4: Enel Spa 4.61%
5: Sempra Energy 4.00%
6: Enterprise Products Partn 3.90%
7: Nrg Energy 3.89%
8: Dominion Energy 3.59%
9: Duke Energy Corp 3.51%
10: Eversource Energy 3.48%
Holdings represent 48.62% of portfolio
Top 10 holdings as of 12/31/18
1: Nextera Energy 9.31%
2: American Electric Power 7.35%
3: Exelon Corp 5.30%
4: Dominion Energy 4.78%
5: Enel Spa 4.40%
6: Duke Energy Corp 4.13%
7: Nrg Energy 4.05%
8: Eversource Energy 3.41%
9: National Grid 3.21%
10: Sse 3.13%
Holdings represent 49.07% of portfolio
Top 10 holdings as of 11/30/18
1: Nextera Energy 9.37%
2: American Electric Power 7.36%
3: Dominion Energy 5.44%
4: Exelon Corp 5.25%
5: Duke Energy Corp 4.08%
6: Nrg Energy 3.79%
7: Sse 3.74%
8: Eversource Energy 3.45%
9: Enel Spa 3.38%
10: National Grid 3.28%
Holdings represent 49.14% of portfolio
Top 10 holdings as of 10/31/18
1: Nextera Energy 9.76%
2: American Electric Power 7.11%
3: Dominion Energy 5.49%
4: Exelon Corp 5.10%
5: Sse 3.73%
6: Duke Energy Corp 3.62%
7: Nrg Energy 3.49%
8: Edison International 3.44%
9: National Grid 3.30%
10: Eversource Energy 3.22%
Holdings represent 48.26% of portfolio

Portfolio Composition as of 01/31/19

Common stock 98.17%
Cash and net other assets 1.83%

Portfolio allocations vary over time. The fund concentrates its investments in one region or in one sector and involves more risk than a fund that invests more broadly. 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.

Growth investing targets companies with above-average earnings that may be subject to price volatility if earnings expectations are not met.

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.

Top Industry Sectors as of 01/31/19

Electric Utilities 54.60%
Multi-Utilities 26.33%
Oil, Gas & Consumable Fuels 6.26%
Independent Power and Renewable Electricity Producers 5.81%
Gas Utilities 4.67%
Cash and net other assets 1.83%
Water Utilities 0.50%

Country Allocation as of 01/31/19

United States 64.88%
United Kingdom 6.29%
Spain 5.46%
Japan 4.77%
Italy 4.61%
France 3.67%
Hong Kong 2.70%
Germany 2.56%
Finland 2.31%
 
Other
2.75%
Cash and net other assets 1.83%
China 0.50%
Denmark 0.42%

Expenses

Sales Charges/Fees

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

The fund concentrates its investments in one region or in one sector and involves more risk than a fund that invests more broadly. 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.

Growth investing targets companies with above-average earnings that may be subject to price volatility if earnings expectations are not met.

‡ 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%