Putnam Allstate Advisor Plus

Putnam Equity Income Subaccount

The subaccount seeks current income. Capital growth is a secondary objective when consistent with seeking current income.

Putnam Equity Income Subaccount

Fund description

The subaccount employs Putnam's value strategy to invest primarily in stocks of large and mid-sized companies that are undervalued and poised for positive change. The subaccount favors dividend-paying companies and is broadly diversified across market sectors. To help manage volatility and increase current income, up to 20% of the portfolio can be invested in high quality, fixed-income securities.

Sales story

A multidimensional approach that defines value on a daily basisA large-value focus: The fund focuses on large companies whose stocks are priced below their long-term potential, and where there may be a catalyst for positive change.Dividend growth: The fund places a distinct emphasis on companies that can grow their dividends and are able and willing to return cash to shareholders.A disciplined process: The portfolio managers invest using fundamental research and quantitative tools supported by strong risk controls in portfolio construction.

Management team

Daily pricing as of 01/17/20

with optional enhanced death benefits
Unit Value $38.215135 $37.255595
Unit Value Change 0.124173 0.120903

Lipper ranking ‡ as of 12/31/19

Category: Equity Income Funds

  Percentile ranking Rank/Funds in category
10 yrs. 19% 10/54
1 yr. 7% 5/80
3 yrs. 19% 13/71
5 yrs. 28% 19/69

Mutual funds that invest in government securities are not guaranteed. Mortgage-backed securities are subject to prepayment risk. Capital gains, if any, are taxable for federal and, in most cases, state purposes. For some investors, investment income may be subject to the federal alternative minimum tax. Income from federally exempt funds may be subject to state and local taxes. 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 12/31/19

Fiscal Year End December
Asset Class Putnam Allstate Advisor Plus
Subaccount Status Open to new investors
Number of issues 102
Turnover (fiscal year end) 14%
Net Assets $1,465M
Inception Date 05/01/03

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 8.43% 28.32% 28.32% 10.53% 7.58% 10.50% 8.27%
Standardized 0.43% 20.32% 20.32% 8.30% 6.67% 10.50% 8.27%
With optional enhanced death benefit
Unit Value 8.39% 28.13% 28.13% 10.36% 7.41% 10.34% 8.11%
Standardized 0.39% 20.13% 20.13% 8.13% 6.50% 10.34% 8.11%
Actual performance
Unit Value 8.43% 28.32% 28.32% 10.53% 7.58% 10.50% 8.27%
Standardized 0.43% 20.32% 20.32% 8.30% 6.67% 10.50% 8.27%
With optional enhanced death benefit
Unit Value -- -- -- -- -- -- --
Standardized -- -- -- -- -- -- --

Annual Performance at NAV

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
10.81% 0.29% 17.39% 30.30% 10.86% -4.59% 11.83% 16.88% -9.96% 28.32%
With optional enhanced death benefit
10.64% 0.14% 17.21% 30.10% 10.69% -4.74% 11.66% 16.70% -10.10% 28.13%

Restated performance

Monthly as of 12/31/19

Unit Value 3.04%
Standardized -4.96%

YTD as of 01/17/20

Unit Value 1.60%
Standardized -6.40%

With optional enhanced death benefit

Monthly as of 12/31/19

Unit Value 3.03%
Standardized -4.97%

YTD as of 01/17/20

Unit Value 1.59%
Standardized -6.41%

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.

Mutual funds that invest in government securities are not guaranteed. Mortgage-backed securities are subject to prepayment risk. Capital gains, if any, are taxable for federal and, in most cases, state purposes. For some investors, investment income may be subject to the federal alternative minimum tax. Income from federally exempt funds may be subject to state and local taxes. 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 12/31/19

Alpha (%) 2.70
Beta 0.99
R Squared 0.96
Standard Deviation (3 yrs.) 12.02

Holdings

JPMorgan Chase 4.51%
Bank Of America Corp 3.58%
Microsoft Corp 3.18%
Citigroup 3.05%
Walmart 2.48%
Apple 2.12%
Johnson&Johnson 1.95%
Northrop Grumman Corp 1.92%
Cigna Corp 1.65%
Merck 1.57%
Top 10 holdings, total: 26.01%

Top 10 holdings as of 12/31/19
1: JPMorgan Chase 4.51%
2: Bank Of America Corp 3.58%
3: Microsoft Corp 3.18%
4: Citigroup 3.05%
5: Walmart 2.48%
6: Apple 2.12%
7: Johnson&Johnson 1.95%
8: Northrop Grumman Corp 1.92%
9: Cigna Corp 1.65%
10: Merck 1.57%
Holdings represent 26.01% of portfolio
Top 10 holdings as of 11/30/19
1: JPMorgan Chase 4.36%
2: Bank Of America Corp 3.46%
3: Microsoft Corp 3.12%
4: Citigroup 2.93%
5: Walmart 2.54%
6: Northrop Grumman Corp 2.00%
7: Apple 1.97%
8: Johnson&Johnson 1.88%
9: Cigna Corp 1.65%
10: Merck 1.54%
Holdings represent 25.45% of portfolio
Top 10 holdings as of 10/31/19
1: JPMorgan Chase 4.22%
2: Bank Of America Corp 3.32%
3: Microsoft Corp 3.02%
4: Citigroup 2.86%
5: Walmart 2.55%
6: Northrop Grumman Corp 2.05%
7: Apple 1.88%
8: Johnson&Johnson 1.84%
9: Merck 1.56%
10: American Electric Power 1.53%
Holdings represent 24.83% of portfolio
Top 10 holdings as of 09/30/19
1: JPMorgan Chase 4.15%
2: Bank Of America Corp 3.23%
3: Microsoft Corp 3.05%
4: Citigroup 2.88%
5: Walmart 2.70%
6: Northrop Grumman Corp 2.27%
7: Johnson & Johnson 1.90%
8: Apple 1.77%
9: American Tower Corp 1.63%
10: American Electric Power 1.60%
Holdings represent 25.18% of portfolio

Portfolio Composition as of 12/31/19

Common stock 98.08%
Cash and net other assets 1.28%
Convertible preferred stock 0.64%

Allocations will vary over time. The unclassified sector (where applicable) includes exchange traded funds and other securities not able to be classified by sector.

Mutual funds that invest in government securities are not guaranteed. Mortgage-backed securities are subject to prepayment risk. Capital gains, if any, are taxable for federal and, in most cases, state purposes. For some investors, investment income may be subject to the federal alternative minimum tax. Income from federally exempt funds may be subject to state and local taxes. 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.

Top Industry Sectors as of 12/31/19

Financials 23.26%
Health care 14.58%
Industrials 10.71%
Information technology 10.59%
Energy 8.99%
Consumer staples 8.55%
Communication services 5.50%
Utilities 5.11%
Consumer discretionary 4.21%
 
Other		 8.50%
Materials 3.93%
Real estate 3.29%
Cash and net other assets 1.28%

Expenses

Sales Charges/Fees

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

Mutual funds that invest in government securities are not guaranteed. Mortgage-backed securities are subject to prepayment risk. Capital gains, if any, are taxable for federal and, in most cases, state purposes. For some investors, investment income may be subject to the federal alternative minimum tax. Income from federally exempt funds may be subject to state and local taxes. 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%