N-CSRS 1 a_vtglobalassetalloc.htm PUTNAM VARIABLE TRUST a_vtglobalassetalloc.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES



Investment Company Act file number: (811-05346)
Exact name of registrant as specified in charter: Putnam Variable Trust
Address of principal executive offices: One Post Office Square, Boston, Massachusetts 02109
Name and address of agent for service: Robert T. Burns, Vice President
One Post Office Square
Boston, Massachusetts 02109
Copy to:         Bryan Chegwidden, Esq.
Ropes & Gray LLP
1211 Avenue of the Americas
New York, New York 10036
Registrant’s telephone number, including area code: (617) 292-1000
Date of fiscal year end: December 31, 2014
Date of reporting period: January 1, 2014 — June 30, 2014



Item 1. Report to Stockholders:

The following is a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Investment Company Act of 1940:



Message from the Trustees

Dear Shareholder:

After pulling back at the start of the year, equity markets resumed their steady advance through the halfway mark of 2014. In June, the S&P 500 Index posted its fifth consecutive month of gains. The bond market has also generated solid positive results across many sectors this year.

Underpinning these stable returns is growing evidence of an economy on the mend, including a strengthening jobs market, and accelerating consumer spending and business investment. Corporations are participating in this improvement, as reflected in stronger-than-expected earnings growth and heightened merger-and-acquisition activity.

One notable characteristic of this market environment is its historically low level of volatility — a relative calm that experience indicates does not last forever. As we move into the second half of the year, we also note that a range of geopolitical uncertainties could push risk levels higher. That said, Putnam offers a wide range of strategies for all market conditions, including portfolios designed for periods of higher market volatility.

As always, thank you for investing with Putnam.



Performance summary (as of 6/30/14)

Investment objective

Long-term return consistent with preservation of capital

Net asset value June 30, 2014

Class IA: $18.60  Class IB: $18.75 

 

Total return at net asset value

 

        Barclays 
      Russell 3000  U.S. Aggregate 
(as of 6/30/14)  Class IA shares*  Class IB shares†  Index  Bond Index 
6 months  6.17%  6.03%  6.94%  3.93% 
1 year  19.26  18.94  25.22  4.37 
5 years  101.63  99.05  141.92  26.74 
Annualized  15.06  14.76  19.33  4.85 
10 years  102.48  98.06  120.49  61.87 
Annualized  7.31  7.07  8.23  4.93 
Life  659.19  627.37  1,333.19  457.73 
Annualized  7.98  7.80  10.61  6.74 

 

For a portion of the periods, the fund had expense limitations, without which returns would have been lower.

* Class inception date: February 1, 1988.

† Class inception date: April 30, 1998.

The Russell 3000 Index is an unmanaged index of the 3,000 largest U.S. companies. The Barclays U.S. Aggregate Bond Index is an unmanaged index of U.S. investment-grade fixed-income securities.

Data represent past performance. Past performance does not guarantee 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 shares. Performance information does not reflect any deduction for taxes a shareholder may owe on fund distributions or on the redemption of fund shares. All total return figures are at net asset value and exclude contract charges and expenses, which are added to the variable annuity contracts to determine total return at unit value. Had these charges and expenses been reflected, performance would have been lower. Performance of class IB shares before their inception is derived from the historical performance of class IA shares, adjusted to reflect the higher operating expenses applicable to such shares. For more recent performance, contact your variable annuity provider who can provide you with performance that reflects the charges and expenses at your contract level.


Allocations are shown as a percentage of the fund’s net assets. Short-term investments and net other assets, if any, represent the market value weights of cash, derivatives, short-term securities, and other unclassified assets in the portfolio. Summary information may differ from the portfolio schedule included in the financial statements due to the inclusion of derivative securities, any interest accruals, the exclusion of as-of trades, if any, and the use of different classifications of securities for presentation purposes. Holdings and allocations may vary over time.

Putnam VT Global Asset Allocation Fund  1 

 


Report from your fund’s manager

How would you describe the investment environment during the six months ended June 30, 2014?

Equity markets performed well overall for the six-month reporting period. The period began mostly on a down note for market performance, with investors assuming a more risk-averse posture. Many questions emerged about the strength and sustainability of the economic recovery, and equity returns were only marginally positive for the first three months of the year. Interest-rate-sensitive assets performed relatively well, reflecting a preference for high-quality assets. In February, emerging-market concerns eased somewhat, and reassuring comments from new Fed Chair Janet Yellen about the central bank’s monetary policy helped most equity markets rebound. In addition, the U.S. debt-ceiling issue was settled temporarily through March 2015.

The second quarter saw steady improvement on the jobs front and measurable signs that the economy was reaccelerating following the weather-related slowdown in the first three months of 2014. Within this environment, corporate earnings continued to expand, and we began to see early signs of improving revenue growth. At that point, investor confidence resurfaced, and several equity indices began to notch record highs against a backdrop of generally low price volatility.

How did the fund perform in this environment?

Putnam VT Global Asset Allocation Fund produced positive returns over the past six months. In addition to strong returns from most asset classes, both dynamic asset allocation strategies and security selection were positive contributors.

Although the fund’s portfolio allocations remained fairly neutral in relation to those of its benchmarks, the fund’s dynamic asset allocation strategy delivered slightly positive performance for the period. A strategic benchmark-relative underweight position in U.S. investment-grade fixed income in favor of global equity exposure benefited performance. Security selection was also a positive contributor. Large-cap equity selection was the primary driver of benchmark-relative outperformance. Fixed-income selection, which included allocations to mortgage credit and prepayment risk, also performed well.

Did you make any significant changes to your asset allocation strategy?

The fund’s asset allocation was largely unchanged during the period. Equity and fixed-income exposure were generally in line with benchmark allocations. We remained underweight to interest-rate-sensitive fixed income, as we believed that continued tapering of the Federal Reserve’s asset purchase program should push interest rates higher over the medium term. Instead, we chose to emphasize more credit-sensitive areas of the fixed-income market. Credit exposure remains the fund’s largest relative overweight.

How did the fund use derivatives during the period?

We used futures to manage exposure to various market risks. This helped us achieve more efficient exposure to attractive asset classes within the portfolio. It is our position that the prudent use of derivatives with strong risk control can help to more effectively manage portfolio risk and to deploy capital to generate returns.

What is your outlook for the second half of 2014?

Following 2013’s extraordinary returns in equity markets, we felt it would be unrealistic to expect a repeat performance in 2014. While we are far off the pace of last year, returns through the first half of 2014 have been encouraging. We believe the fundamentals of the U.S. economy are sufficiently solid to support further growth in the equity markets during the second half of 2014. Stock prices may be fully valued but they are not overvalued, in my opinion. I believe that the economy will continue to grow and corporate earnings will continue to be strong. We believe credit-sensitive assets such as high-yield bonds may continue to advance, albeit not as strongly as they did in 2013. Since our longer-term outlook is for rising interest rates, we expect to continue to underweight interest-rate-sensitive assets and maintain a focus on equities, particularly U.S. stocks, in the portfolio.

The views expressed in this report are exclusively those of Putnam Management and are subject to change. They are not meant as investment advice. Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future.

Consider these risks before investing: International investing involves currency, economic, and political risks. Emerging-market securities have illiquidity and volatility risks. Investments in small and/or midsize companies increase the risk of greater price fluctuations. Lower-rated bonds may offer higher yields in return for more risk. Funds that invest in government securities are not guaranteed. Mortgage-backed securities are subject to prepayment risk and the risk that they may increase in value less when interest rates decline and decline in value more when interest rates rise. Our allocation of assets among permitted asset categories may hurt performance. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. Bond investments are subject to interest-rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments). Interest-rate risk is greater for longer-term bonds, and credit risk is greater for below-investment-grade bonds. Risks associated with derivatives include increased investment exposure (which may be considered leverage) and, in the case of over-the-counter instruments, the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations. Unlike bonds, funds that invest in bonds have fees and expenses. Stock and bond prices may fall or fail to rise over time for several reasons, including general financial market conditions,

2  Putnam VT Global Asset Allocation Fund 

 


factors related to a specific issuer or industry and, with respect to bond prices, changing market perceptions of the risk of default and changes in government intervention. These factors may also lead to increased volatility and reduced liquidity in the bond markets. You can lose money by investing in the fund.

Your fund’s managers


Portfolio Manager James A. Fetch is a Co-Head of Global Asset Allocation at Putnam. He has been in the investment industry since he joined Putnam in 1994.

In addition to James, your fund’s managers are Robert J. Kea, CFA; Joshua B. Kutin, CFA; Robert J. Schoen; and Jason R. Vaillancourt, CFA.

Your fund’s managers may also manage other accounts advised by Putnam Management or an affiliate, including retail mutual fund counterparts to the funds in Putnam Variable Trust.

ABOUT DERIVATIVES

Derivatives are an increasingly common type of investment instrument, the performance of which is derived from an underlying security, index, currency, or other area of the capital markets. Derivatives employed by the fund’s managers generally serve one of two main purposes: to implement a strategy that may be difficult or more expensive to invest in through traditional securities, or to hedge unwanted risk associated with a particular position.

For example, the fund’s managers might use currency forward contracts to capitalize on an anticipated change in exchange rates between two currencies. This approach would require a significantly smaller outlay of capital than purchasing traditional bonds denominated in the underlying currencies. In another example, the managers may identify a bond that they believe is undervalued relative to its risk of default, but may seek to reduce the interest-rate risk of that bond by using interest-rate swaps, a derivative through which two parties “swap” payments based on the movement of certain rates. In other examples, the managers may use options and futures contracts to hedge against a variety of risks by establishing a combination of long and short exposures to specific equity markets or sectors.

Like any other investment, derivatives may not appreciate in value and may lose money. Derivatives may amplify traditional investment risks through the creation of leverage and may be less liquid than traditional securities. And because derivatives typically represent contractual agreements between two financial institutions, derivatives entail “counterparty risk,” which is the risk that the other party is unable or unwilling to pay. Putnam monitors the counterparty risks we assume. For example, Putnam often enters into collateral agreements that require the counterparties to post collateral on a regular basis to cover their obligations to the fund. Counterparty risk for exchange-traded futures and centrally cleared swaps is mitigated by the daily exchange of margin and other safeguards against default through their respective clearinghouses.

Putnam VT Global Asset Allocation Fund  3 

 


Understanding your fund’s expenses

As an investor in a variable annuity product that invests in a registered investment company, you pay ongoing expenses, such as management fees, distribution fees (12b-1 fees), and other expenses. Using the following information, you can estimate how these expenses affect your investment and compare them with the expenses of other funds. You may also pay one-time transaction expenses, which are not shown in this section and would result in higher total expenses. Charges and expenses at the insurance company separate account level are not reflected. For more information, see your fund’s prospectus or talk to your financial representative.

Review your fund’s expenses

The first two columns in the following table show the expenses you would have paid on a $1,000 investment in your fund from January 1, 2014, to June 30, 2014. They also show how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses. To estimate the ongoing expenses you paid over the period, divide your account value by $1,000, then multiply the result by the number in the first line for the class of shares you own.

Compare your fund’s expenses with those of other funds

The two right-hand columns of the table show your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total costs) of investing in the fund with those of other funds. All shareholder reports of mutual funds and funds serving as variable annuity vehicles will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

  Expenses and value for a  Expenses and value for a 
  $1,000 investment, assuming  $1,000 investment, assuming a 
  actual returns for the 6 months  hypothetical 5% annualized return 
  ended 6/30/14    for the 6 months ended 6/30/14 
 
 
  Class IA  Class IB  Class IA  Class IB 
 
Expenses paid         
per $1,000*†  $4.40  $5.67  $4.31  $5.56 
 
Ending value         
(after expenses)  $1,061.70  $1,060.30  $1,020.53  $1,019.29 
 
Annualized         
expense ratio  0.86%  1.11%  0.86%  1.11% 

 

*Expenses for each share class are calculated using the fund’s annualized expense ratio for each class, which represents the ongoing expenses as a percentage of average net assets for the six months ended 6/30/14. The expense ratio may differ for each share class.

†Expenses based on actual returns are calculated by multiplying the expense ratio by the average account value for the period; then multiplying the result by the number of days in the period; and then dividing that result by the number of days in the year. Expenses based on a hypothetical 5% return are calculated by multiplying the expense ratio by the average account value for the six-month period; then multiplying the result by the number of days in the six-month period; and then dividing that result by the number of days in the year.

4  Putnam VT Global Asset Allocation Fund 

 


The fund’s portfolio 6/30/14 (Unaudited)

COMMON STOCKS (57.3%)*  Shares  Value 
 
Basic materials (2.9%)     
Aceto Corp.  674  $12,226 
Amcor, Ltd. (Australia)  5,414  53,247 
Andersons, Inc. (The)  347  17,898 
Antofagasta PLC (United Kingdom)  3,650  47,662 
ArcelorMittal SA (France)  4,286  63,559 
Assa Abloy AB Class B (Sweden)  645  32,822 
Axiall Corp. S  908  42,921 
BASF SE (Germany)  1,133  131,917 
BHP Billiton PLC (United Kingdom)  2,222  71,853 
BHP Billiton, Ltd. (Australia)  2,906  98,374 
Buzzi Unicem SpA (Italy)  359  6,042 
Cambrex Corp. †  2,430  50,301 
Chemtura Corp. †  2,425  63,365 
Compagnie de Saint-Gobain (France)  289  16,306 
Domtar Corp. (Canada)  376  16,112 
Dow Chemical Co. (The)  24,200  1,245,332 
EMS-Chemie Holding AG (Switzerland)  142  56,685 
Fortescue Metals Group, Ltd. (Australia)  2,624  10,763 
Glencore Xstrata PLC (United Kingdom)  19,941  111,101 
Hi-Crush Partners LP (Units)  750  49,170 
Hitachi Metals, Ltd. (Japan)  9,000  136,282 
Holcim, Ltd. (Switzerland)  538  47,290 
Horsehead Holding Corp. † S  2,598  47,439 
Innophos Holdings, Inc.  520  29,936 
Innospec, Inc.  667  28,794 
KapStone Paper and Packaging Corp. †  1,163  38,530 
Koninklijke Boskalis Westminster NV (Netherlands)  1,157  66,358 
Kraton Performance Polymers, Inc. †  713  15,964 
L.B. Foster Co. Class A  532  28,792 
Landec Corp. †  4,319  53,944 
LG Chemical, Ltd. (South Korea)  90  26,329 
Limoneira Co. S  449  9,865 
LSB Industries, Inc. †  1,140  47,504 
LyondellBasell Industries NV Class A  7,700  751,905 
Minerals Technologies, Inc.  298  19,543 
Monsanto Co.  234  29,189 
Mota-Engil Africa (Rights) (Portugal) † F  5,645  2,899 
Mota-Engil SGPS SA (Portugal)  6,145  48,130 
NN, Inc.  1,964  50,239 
Olin Corp.  1,081  29,101 
OM Group, Inc.  646  20,950 
Packaging Corp. of America  1,800  128,682 
Rayonier Advanced Materials, Inc. †  800  31,000 
Reliance Steel & Aluminum Co.  1,500  110,565 
Rio Tinto PLC (United Kingdom)  1,172  62,349 
S&W Seed Co. † S  1,638  10,631 
Sherwin-Williams Co. (The)  3,500  724,185 
Solvay SA (Belgium)  215  37,006 
Sumitomo Metal Mining Co., Ltd. (Japan)  4,000  64,952 
Syngenta AG (Switzerland)  207  77,100 
Trex Co., Inc. † S  1,035  29,829 
Tronox, Ltd. Class A  1,029  27,680 
U.S. Silica Holdings, Inc.  1,393  77,228 
UPM-Kymmene OYJ (Finland)  3,987  68,133 

 

COMMON STOCKS (57.3%)* cont.  Shares  Value 
 
Basic materials cont.     
Veidekke ASA (Norway)  1,915  $21,542 
voestalpine AG (Austria) S  2,321  110,456 
Wacker Chemie AG (Germany)  117  13,510 
Wendel SA (France)  514  73,620 
Zep, Inc.  1,444  25,501 
    5,420,608 
Capital goods (4.4%)     
ABB, Ltd. (Switzerland)  3,536  81,422 
Airbus Group NV (France)  1,311  87,855 
Alfa Laval AB (Sweden)  3,756  96,801 
Alliant Techsystems, Inc.  369  49,416 
Alstom SA (France)  253  9,224 
Altra Industrial Motion Corp.  1,420  51,674 
Astronics Corp. †  383  21,620 
AviChina Industry & Technology Co., Ltd. (China)  36,000  20,345 
AZZ, Inc.  671  30,920 
Ball Corp.  2,800  175,504 
Caterpillar, Inc.  5,900  641,153 
Chase Corp.  794  27,107 
Coway Co., Ltd. (South Korea)  487  40,768 
Crown Holdings, Inc. †  13,700  681,712 
Cummins, Inc.  4,600  709,734 
Daikin Industries, Ltd. (Japan)  500  31,548 
Douglas Dynamics, Inc.  1,248  21,990 
DXP Enterprises, Inc. †  266  20,094 
Faurecia (France)  725  27,360 
Franklin Electric Co., Inc.  592  23,875 
Gaztransport Et Technigaz SA (France)  308  20,079 
Generac Holdings, Inc. † S  831  40,503 
Greenbrier Cos., Inc. (The) † S  1,776  102,298 
HD Supply Holdings, Inc. †  699  19,845 
HEICO Corp.  169  8,778 
Hitachi, Ltd. (Japan)  2,000  14,649 
Hyster-Yale Materials Holdings, Inc.  300  26,562 
IDEX Corp. S  3,400  274,516 
IHI Corp. (Japan)  14,000  65,229 
II-VI, Inc. †  1,950  28,197 
IMI PLC (United Kingdom)  3,598  91,564 
Ingersoll-Rand PLC S  4,600  287,546 
JGC Corp. (Japan)  2,000  60,767 
Joy Global, Inc. S  4,100  252,478 
Kadant, Inc.  800  30,760 
Leggett & Platt, Inc. S  5,300  181,684 
Miller Industries, Inc.  968  19,921 
MSA Safety, Inc.  332  19,083 
Northrop Grumman Corp.  6,500  777,595 
NSK, Ltd. (Japan)  2,000  26,001 
Orbital Sciences Corp. †  1,476  43,616 
OSRAM Licht AG (Germany) †  1,031  52,002 
Polypore International, Inc. †  205  9,785 
Raytheon Co.  12,641  1,166,132 
Rheinmetall AG (Germany)  459  32,494 
Roper Industries, Inc.  4,700  686,247 
Safran SA (France)  739  48,385 
Schneider Electric SA (France)  149  14,027 
Singapore Technologies Engineering, Ltd.     
(Singapore)  20,000  60,951 

 

Putnam VT Global Asset Allocation Fund  5 

 


COMMON STOCKS (57.3%)* cont.  Shares  Value 
 
Capital goods cont.     
SMC Corp. (Japan)  100  $26,761 
Standard Motor Products, Inc.  1,393  62,225 
Standex International Corp.  384  28,600 
Stoneridge, Inc. †  2,152  23,069 
Tenneco, Inc. †  348  22,864 
THK Co., Ltd. (Japan)  2,500  58,931 
Tower International, Inc. †  1,534  56,513 
TriMas Corp. †  1,830  69,778 
Trinseo SA †  377  7,842 
Vinci SA (France)  2,171  162,312 
WABCO Holdings, Inc. †  6,100  651,602 
Zodiac Aerospace (France)  1,450  49,081 
    8,531,394 
Communication services (2.3%)     
Allot Communications, Ltd. (Israel) †  714  9,318 
Arris Group, Inc. †  442  14,378 
Aruba Networks, Inc. †  470  8,234 
BT Group PLC (United Kingdom)  15,030  99,005 
CalAmp Corp. † S  1,421  30,779 
Com Hem Holding AB (Sweden) †  1,943  18,320 
Comcast Corp. Class A  26,600  1,427,888 
Deutsche Telekom AG (Germany)  4,999  87,618 
EchoStar Corp. Class A †  1,913  101,274 
Frontier Communications Corp. S  5,116  29,877 
HSN, Inc.  226  13,388 
IDT Corp. Class B  796  13,866 
Inteliquent, Inc.  1,178  16,339 
Iridium Communications, Inc. † S  2,102  17,783 
KDDI Corp. (Japan)  300  18,298 
Liberty Global PLC Ser. C (United Kingdom)  416  17,601 
Loral Space & Communications, Inc. †  391  28,422 
NTT DoCoMo, Inc. (Japan)  4,300  73,517 
Numericable Group SA (France) †  319  19,001 
Orange (France)  4,242  66,944 
Quebecor, Inc. Class B (Canada)  1,000  24,198 
Ruckus Wireless, Inc. †  1,212  14,435 
ShoreTel, Inc. †  1,307  8,522 
Tele2 AB Class B (Sweden)  2,428  28,599 
Telecom Corp. of New Zealand, Ltd. (New Zealand)  7,309  17,150 
Telecom Italia SpA RSP (Italy)  41,084  40,589 
Telefonica SA (Spain)  4,099  70,272 
Telenor ASA (Norway)  2,670  60,810 
Telstra Corp., Ltd. (Australia)  20,030  98,403 
Ubiquiti Networks, Inc. † S  758  34,254 
USA Mobility, Inc.  1,137  17,510 
Verizon Communications, Inc.  34,721  1,698,899 
Vodafone Group PLC (United Kingdom)  22,859  76,286 
Ziggo NV (Netherlands)  792  36,623 
    4,338,400 
Conglomerates (0.8%)     
AMETEK, Inc.  7,000  365,960 
Danaher Corp.  10,700  842,411 
Exor SpA (Italy)  1,105  45,377 
Marubeni Corp. (Japan)  3,000  21,944 
Mitsubishi Corp. (Japan)  2,700  56,156 
Siemens AG (Germany)  1,749  230,989 
Vivendi SA (France)  569  13,923 
    1,576,760 

 

COMMON STOCKS (57.3%)* cont.  Shares  Value 
 
Consumer cyclicals (6.6%)     
Adidas AG (Germany)  533  $53,986 
ADT Corp. (The) S  6,850  239,339 
ANN, Inc. †  1,043  42,909 
Ascena Retail Group, Inc. †  890  15,219 
Ascent Capital Group, Inc. Class A †  115  7,591 
Atresmedia Corporacion de Medios de Comunicacion     
SA (Spain) S  3,116  44,630 
Babcock International Group PLC (United Kingdom)  3,366  66,938 
Bayerische Motoren Werke (BMW) AG (Germany)  622  78,885 
Big Lots, Inc. †  930  42,501 
Blyth, Inc. S  682  5,306 
Brown Shoe Co., Inc.  545  15,592 
Bureau Veritas SA (France)  2,049  56,871 
CaesarStone Sdot-Yam, Ltd. (Israel)  319  15,657 
Carmike Cinemas, Inc. †  518  18,197 
Century Casinos, Inc. †  2,019  11,690 
China ZhengTong Auto Services Holdings, Ltd.     
(China)  28,500  15,959 
Compagnie Financiere Richemont SA (Switzerland)  1,131  118,673 
Compass Group PLC (United Kingdom)  7,881  137,168 
Continental AG (Germany)  659  152,636 
Conversant, Inc. † S  1,086  27,584 
Cooper Tire & Rubber Co.  1,588  47,640 
Corporate Executive Board Co. (The)  237  16,168 
Crocs, Inc. †  512  7,695 
Daimler AG (Registered Shares) (Germany)  765  71,650 
Dalata Hotel Group, Ltd. (Ireland) †  3,291  13,499 
Deckers Outdoor Corp. † S  920  79,424 
Deluxe Corp.  1,366  80,020 
Demand Media, Inc. †  1,378  6,642 
Denso Corp. (Japan)  1,000  47,727 
Destination Maternity Corp.  1,541  35,089 
Ennis, Inc.  1,178  17,976 
Expedia, Inc.  3,150  248,094 
Experian PLC (United Kingdom)  4,480  75,751 
Fuji Heavy Industries, Ltd. (Japan)  4,400  121,830 
G&K Services, Inc. Class A  491  25,566 
GameStop Corp. Class A S  4,700  190,209 
Gap, Inc. (The)  7,000  290,990 
General Motors Co.  6,500  235,950 
Genesco, Inc. †  384  31,538 
Global Mediacom Tbk PT (Indonesia)  189,800  34,022 
Green Dot Corp. Class A †  820  15,564 
Haier Electronics Group Co., Ltd. (China)  5,000  13,064 
Hanesbrands, Inc.  3,000  295,320 
Harbinger Group, Inc. †  3,987  50,635 
Harley-Davidson, Inc.  7,500  523,875 
Hilton Worldwide Holdings, Inc. †  25,000  582,500 
Hino Motors, Ltd. (Japan)  4,800  66,097 
Home Depot, Inc. (The)  16,000  1,295,360 
ITV PLC (United Kingdom)  27,266  83,154 
KAR Auction Services, Inc.  2,291  73,014 
Kimberly-Clark Corp.  12,300  1,368,006 
Kingfisher PLC (United Kingdom)  2,518  15,470 
La-Z-Boy, Inc.  454  10,519 
Lenta, Ltd. 144A GDR (Russia) †  1,670  21,543 
Lions Gate Entertainment Corp. S  1,444  41,270 

 

6  Putnam VT Global Asset Allocation Fund 

 


COMMON STOCKS (57.3%)* cont.  Shares  Value 
 
Consumer cyclicals cont.     
Lowe’s Cos., Inc.  15,000  $719,850 
Lumber Liquidators Holdings, Inc. † S  143  10,861 
Luxottica Group SpA (Italy)  411  23,789 
Macy’s, Inc.  8,100  469,962 
Marcus Corp.  1,734  31,646 
MasterCard, Inc. Class A  1,000  73,470 
MAXIMUS, Inc.  322  13,852 
Mediaset SpA (Italy) †  5,675  27,664 
Melco Crown Entertainment, Ltd. ADR (Hong Kong)  700  24,997 
MGM China Holdings, Ltd. (Hong Kong)  22,000  76,357 
Moncler SpA (Italy)  440  7,296 
Namco Bandai Holdings, Inc. (Japan)  4,500  105,365 
National CineMedia, Inc.  2,027  35,493 
Next PLC (United Kingdom)  1,258  139,403 
Nissan Motor Co., Ltd. (Japan)  3,400  32,253 
Nu Skin Enterprises, Inc. Class A  225  16,641 
Omnicom Group, Inc.  6,700  477,174 
Panasonic Corp. (Japan)  10,300  125,465 
Penn National Gaming, Inc. †  2,743  33,300 
Pitney Bowes, Inc.  1,224  33,807 
Priceline Group, Inc. (The) †  300  360,900 
Puregold Price Club, Inc. (Philippines)  26,600  26,448 
Randstad Holding NV (Netherlands)  420  22,768 
Remy International, Inc.  803  18,750 
Renault SA (France)  917  82,910 
Scripps Networks Interactive Class A  3,200  259,648 
Sega Sammy Holdings, Inc. (Japan)  2,100  41,314 
Select Comfort Corp. †  1,128  23,304 
Serco Group PLC (United Kingdom)  3,483  21,787 
Sinclair Broadcast Group, Inc. Class A S  530  18,418 
SJM Holdings, Ltd. (Hong Kong)  20,000  50,114 
Sonic Automotive, Inc. Class A  1,299  34,657 
Sotheby’s Class A S  919  38,589 
Sports Direct International PLC (United Kingdom) †  2,384  28,825 
Steven Madden, Ltd. †  425  14,578 
Sun TV Network, Ltd. (India)  2,061  15,727 
Suzuki Motor Corp. (Japan)  3,500  109,624 
Swatch Group AG (The) (Switzerland)  101  60,990 
Thomas Cook Group PLC (United Kingdom) †  12,270  28,034 
TiVo, Inc. †  5,493  70,915 
Toyota Motor Corp. (Japan)  3,200  192,180 
TUI Travel PLC (United Kingdom)  8,248  56,180 
Vail Resorts, Inc.  178  13,738 
Valeo SA (France)  705  94,692 
Viacom, Inc. Class B  9,500  823,935 
VOXX International Corp. †  2,591  24,381 
WH Smith PLC (United Kingdom)  774  14,173 
Wirecard AG (Germany)  381  16,449 
World Fuel Services Corp.  997  49,082 
WPP PLC (United Kingdom)  3,488  76,050 
Wyndham Worldwide Corp.  3,500  265,020 
    12,733,027 
Consumer staples (4.4%)     
Anheuser-Busch InBev NV (Belgium)  1,712  196,682 
Associated British Foods PLC (United Kingdom)  2,501  130,504 
Barrett Business Services, Inc.  374  17,578 
Barry Callebaut AG (Switzerland)  28  38,047 

 

COMMON STOCKS (57.3%)* cont.  Shares  Value 
 
Consumer staples cont.     
Beacon Roofing Supply, Inc. †  207  $6,856 
Blue Nile, Inc. †  348  9,744 
Boulder Brands, Inc. †  437  6,197 
Bright Horizons Family Solutions, Inc. †  710  30,487 
British American Tobacco (BAT) PLC     
(United Kingdom)  1,436  85,474 
Calbee, Inc. (Japan)  2,900  79,982 
Carrefour SA (France)  2,006  73,999 
Chaoda Modern Agriculture Holdings, Ltd.     
(China) † F  10,000  645 
Chegg, Inc. †  2,206  15,530 
Colgate-Palmolive Co.  3,700  252,266 
Core-Mark Holding Co., Inc.  808  36,869 
Coty, Inc. Class A  2,336  40,016 
CVS Caremark Corp.  20,500  1,545,085 
Diageo PLC (United Kingdom)  2,009  64,157 
Distribuidora Internacional de Alimentacion SA     
(Spain)  5,877  54,111 
Dr. Pepper Snapple Group, Inc.  11,400  667,812 
Genuine Parts Co.  5,900  518,020 
Geo Group, Inc. (The) R  332  11,862 
Grand Canyon Education, Inc. †  254  11,676 
Heineken Holding NV (Netherlands)  1,024  67,325 
Henkel AG & Co. KGaA (Preference) (Germany)  563  65,088 
ITOCHU Corp. (Japan)  1,100  14,127 
ITT Educational Services, Inc. † S  2,528  42,192 
Japan Tobacco, Inc. (Japan)  3,100  113,008 
Kao Corp. (Japan)  2,000  78,713 
Kerry Group PLC Class A (Ireland)  887  66,619 
Kforce, Inc.  1,601  34,662 
Koninklijke Ahold NV (Netherlands)  4,780  89,735 
Korn/Ferry International †  852  25,023 
Krispy Kreme Doughnuts, Inc. †  1,133  18,105 
L’Oreal SA (France)  369  63,588 
ManpowerGroup, Inc.  5,600  475,160 
MEIJI Holdings Co., Ltd. (Japan)  1,100  72,859 
Mondelez International, Inc. Class A  27,400  1,030,514 
MWI Veterinary Supply, Inc. †  195  27,688 
NACCO Industries, Inc. Class A  149  7,539 
Nestle SA (Switzerland)  3,976  308,019 
New Oriental Education & Technology Group, Inc.     
ADR (China)  1,200  31,884 
Nutraceutical International Corp. †  559  13,338 
On Assignment, Inc. †  1,288  45,814 
Papa John’s International, Inc.  804  34,082 
Philip Morris International, Inc.  15,328  1,292,304 
Popeyes Louisiana Kitchen, Inc. †  635  27,756 
Reckitt Benckiser Group PLC (United Kingdom)  710  61,970 
Red Robin Gourmet Burgers, Inc. †  214  15,237 
RetailMeNot, Inc. †  853  22,698 
SABMiller PLC (United Kingdom)  980  56,823 
Seven & I Holdings Co., Ltd. (Japan)  300  12,639 
Shutterfly, Inc. †  175  7,536 
SpartanNash Co.  801  16,829 
TrueBlue, Inc. †  3,220  88,775 
Unilever NV ADR (Netherlands)  1,506  65,897 
Unilever PLC (United Kingdom)  1,235  56,031 

 

Putnam VT Global Asset Allocation Fund  7 

 


COMMON STOCKS (57.3%)* cont.  Shares  Value 
 
Consumer staples cont.     
United Natural Foods, Inc. †  245  $15,950 
USANA Health Sciences, Inc. †  203  15,862 
WM Morrison Supermarkets PLC (United Kingdom)  1,646  5,166 
Wolseley PLC (United Kingdom)  403  22,091 
Woolworths, Ltd. (Australia)  1,285  42,676 
    8,444,921 
Energy (4.8%)     
Aker Solutions ASA (Norway)  1,107  19,239 
AMEC PLC (United Kingdom)  4,131  85,898 
Baker Hughes, Inc.  7,200  536,040 
Beijing Jingneng Clean Energy Co., Ltd. (China)  32,000  14,286 
BG Group PLC (United Kingdom)  5,296  111,935 
BP PLC (United Kingdom)  20,813  183,404 
Cabot Oil & Gas Corp.  7,200  245,808 
Callon Petroleum Co. †  4,728  55,081 
Delek US Holdings, Inc.  1,621  45,761 
Dril-Quip, Inc. †  1,000  109,240 
EnCana Corp. (Canada)  1,500  35,537 
EOG Resources, Inc.  8,100  946,566 
Exxon Mobil Corp.  17,004  1,711,963 
Ezion Holdings, Ltd. (Singapore)  21,400  35,698 
FutureFuel Corp.  2,556  42,404 
Genel Energy PLC (United Kingdom) †  1,335  23,190 
Gulfport Energy Corp. †  309  19,405 
Halliburton Co.  11,317  803,620 
Key Energy Services, Inc. †  3,167  28,946 
Kodiak Oil & Gas Corp. †  1,913  27,834 
Lone Pine Resources Canada, Ltd. (Canada) † F  2,494  249 
Lone Pine Resources, Inc. Class A (Canada) † F  2,494  249 
Oceaneering International, Inc.  2,100  164,073 
Oil States International, Inc. †  1,300  83,317 
Rosetta Resources, Inc. †  288  15,797 
Royal Dutch Shell PLC Class A (United Kingdom)  4,244  175,660 
Royal Dutch Shell PLC Class A (United Kingdom)  2,665  110,351 
Royal Dutch Shell PLC Class B (United Kingdom)  3,079  133,975 
Schlumberger, Ltd.  16,600  1,957,970 
SPT Energy Group, Inc. (China)  38,000  20,004 
Statoil ASA (Norway)  4,078  125,255 
Stone Energy Corp. †  919  43,000 
Suncor Energy, Inc. (Canada)  1,068  45,541 
Superior Energy Services, Inc.  18,500  668,590 
Total SA (France)  2,216  160,154 
Unit Corp. †  446  30,698 
Vaalco Energy, Inc. †  2,488  17,988 
W&T Offshore, Inc.  806  13,194 
Woodside Petroleum, Ltd. (Australia)  1,613  62,467 
WPX Energy, Inc. †  13,100  313,221 
    9,223,608 
Financials (11.6%)     
Access National Corp.  765  11,597 
ACE, Ltd.  323  33,495 
Admiral Group PLC (United Kingdom)  980  25,979 
AG Mortgage Investment Trust, Inc. R  461  8,727 
Ageas (Belgium)  1,992  79,470 
Agree Realty Corp. R  773  23,368 
AIA Group, Ltd. (Hong Kong)  35,200  176,899 
Alleghany Corp. †  800  350,496 
Allianz SE (Germany)  735  122,483 

 

COMMON STOCKS (57.3%)* cont.  Shares  Value 
 
Financials cont.     
Allied World Assurance Co. Holdings AG  1,557  $59,197 
American Equity Investment Life Holding Co.  1,813  44,600 
American International Group, Inc.  900  49,122 
Amtrust Financial Services, Inc. S  960  40,138 
Aon PLC  10,600  954,954 
Arlington Asset Investment Corp. Class A S  529  14,458 
ARMOUR Residential REIT, Inc. R  2,457  10,639 
Ashford Hospitality Prime, Inc. R  579  9,936 
Ashford Hospitality Trust, Inc. R  2,889  33,339 
Assicurazioni Generali SpA (Italy)  4,391  96,262 
Australia & New Zealand Banking Group, Ltd.     
(Australia)  2,252  70,798 
AvalonBay Communities, Inc. R  5,000  710,950 
AXA SA (France)  3,726  89,056 
Banca Popolare di Milano Scarl (Italy) †  18,536  16,625 
Banco Bilbao Vizcaya Argentaria SA (BBVA) (Spain)  6,397  81,541 
Banco Espirito Santo SA (Portugal) †  35,518  29,278 
Banco Latinoamericano de Exportaciones SA Class E     
(Panama)  1,728  51,270 
Banco Santander SA (Spain)  9,573  100,016 
Bank of Ireland (Ireland) †  90,128  30,483 
Bank of Kentucky Financial Corp.  458  15,934 
Bank of New York Mellon Corp. (The)  16,200  607,176 
Bank of Queensland, Ltd. (Australia)  3,109  35,737 
Bank of Yokohama, Ltd. (The) (Japan)  11,000  63,304 
Barclays PLC (United Kingdom)  14,135  51,478 
Bellway PLC (United Kingdom)  931  24,951 
Beni Stabili SpA (Italy) R  15,559  14,274 
Berkshire Hathaway, Inc. Class B †  800  101,248 
BNP Paribas SA (France)  1,067  72,387 
BofI Holding, Inc. † S  492  36,147 
Cardinal Financial Corp.  1,506  27,801 
Carlyle Group LP (The)  614  20,851 
CBL & Associates Properties, Inc. R  1,028  19,532 
CBRE Group, Inc. Class A †  16,800  538,272 
Challenger, Ltd. (Australia)  9,507  66,697 
Chubb Corp. (The)  7,800  718,926 
Citizens & Northern Corp.  973  18,964 
City National Corp.  3,500  265,160 
CNO Financial Group, Inc.  1,919  34,158 
Commonwealth Bank of Australia (Australia)  2,679  204,316 
Credicorp, Ltd. (Peru)  159  24,720 
Credit Acceptance Corp. †  191  23,512 
Credit Agricole SA (France)  6,547  92,338 
Credit Suisse Group AG (Switzerland)  1,475  42,181 
CYS Investments, Inc. R S  1,467  13,232 
DBS Group Holdings, Ltd. (Singapore)  5,000  67,167 
Deutsche Bank AG (Germany)  1,726  60,728 
Deutsche Wohnen AG (Germany)  2,953  63,686 
Dexus Property Group (Australia) R  58,308  61,029 
Discover Financial Services  14,200  880,116 
DNB ASA (Norway)  875  16,005 
Dubai Islamic Bank PJSC (United Arab Emirates) †  15,666  27,512 
East West Bancorp, Inc.  529  18,510 
Education Realty Trust, Inc. R  4,088  43,905 
Encore Capital Group, Inc. † S  1,027  46,646 
EPR Properties R  435  24,303 

 

8  Putnam VT Global Asset Allocation Fund 

 


COMMON STOCKS (57.3%)* cont.  Shares  Value 
 
Financials cont.     
Erste Group Bank AG (Czech Republic)  1,167  $37,744 
Essex Property Trust, Inc. R  3,800  702,658 
Eurazeo SA (France)  110  9,150 
Farmers Capital Bank Corp. †  695  15,700 
Federal Agricultural Mortgage Corp. Class C  693  21,538 
Federal Realty Investment Trust R  1,500  181,380 
Financial Institutions, Inc.  1,006  23,561 
First Community Bancshares Inc.  952  13,642 
First Industrial Realty Trust R  924  17,408 
First NBC Bank Holding Co. †  584  19,570 
First Niagara Financial Group, Inc.  14,800  129,352 
FirstMerit Corp.  1,181  23,325 
Flushing Financial Corp.  980  20,139 
Genworth Financial, Inc. Class A †  5,836  101,546 
Glimcher Realty Trust R  1,806  19,559 
Goldman Sachs Group, Inc. (The)  8,900  1,490,216 
GPT Group (Australia) R  18,763  67,939 
Grupo Financiero Banorte SAB de CV (Mexico)  3,900  27,891 
Hammerson PLC (United Kingdom) R  4,867  48,310 
Hang Seng Bank, Ltd. (Hong Kong)  4,400  71,872 
Hanmi Financial Corp.  1,987  41,886 
Heartland Financial USA, Inc.  677  16,742 
Heritage Financial Group, Inc.  841  16,677 
HFF, Inc. Class A  2,558  95,132 
Hibernia REIT PLC (Ireland) † R  40,305  61,261 
Hongkong Land Holdings, Ltd. (Hong Kong)  2,000  13,340 
HSBC Holdings PLC (United Kingdom)  21,545  218,615 
ING Groep NV GDR (Netherlands) †  6,161  86,556 
Insurance Australia Group, Ltd. (Australia)  15,785  86,925 
Intact Financial Corp. (Canada)  244  16,825 
Invesco Mortgage Capital, Inc. R  743  12,898 
Investor AB Class B (Sweden)  1,933  72,529 
Investors Real Estate Trust R  2,092  19,267 
iStar Financial, Inc. † R  1,752  26,245 
Joyo Bank, Ltd. (The) (Japan)  11,000  58,635 
JPMorgan Chase & Co.  34,243  1,973,082 
Kilroy Realty Corp. R  1,500  93,420 
KKR & Co. LP  1,000  24,330 
Legal & General Group PLC (United Kingdom)  18,911  72,949 
Lexington Realty Trust R S  4,053  44,624 
Lloyds Banking Group PLC (United Kingdom) †  130,587  165,939 
LTC Properties, Inc. R  1,084  42,319 
Maiden Holdings, Ltd. (Bermuda)  1,661  20,081 
MainSource Financial Group, Inc.  1,492  25,737 
Meta Financial Group, Inc.  549  21,960 
Metro Bank PLC (acquired 1/15/14,     
cost $19,115) (Private) (United Kingdom) † ∆∆ F  898  19,184 
MFA Financial, Inc. R  2,465  20,238 
MicroFinancial, Inc.  1,110  8,580 
Mitsubishi Estate Co., Ltd. (Japan)  1,000  24,688 
Mitsubishi UFJ Financial Group (MUFG), Inc.     
(Japan)  13,000  79,690 
Mitsui Fudosan Co., Ltd. (Japan)  1,000  33,720 
Morgan Stanley  20,100  649,833 
MS&AD Insurance Group Holdings (Japan)  300  7,246 
Muenchener Rueckversicherungs AG (Germany)  250  55,422 
National Australia Bank, Ltd. (Australia)  2,295  70,938 

 

COMMON STOCKS (57.3%)* cont.  Shares  Value 
 
Financials cont.     
National Health Investors, Inc. R S  604  $37,786 
Natixis (France)  8,787  56,334 
Nelnet, Inc. Class A  897  37,163 
Oberoi Realty, Ltd. (India)  3,059  13,193 
Ocwen Financial Corp. †  531  19,700 
OFG Bancorp (Puerto Rico)  908  16,716 
One Liberty Properties, Inc. R  1,012  21,596 
Pacific Premier Bancorp, Inc. †  926  13,047 
PacWest Bancorp  792  34,191 
PartnerRe, Ltd.  3,100  338,551 
Peoples Bancorp, Inc.  927  24,519 
Performant Financial Corp. †  1,902  19,210 
Persimmon PLC (United Kingdom) †  748  16,296 
PHH Corp. † S  800  18,384 
PNC Financial Services Group, Inc.  15,700  1,398,085 
Popular, Inc. (Puerto Rico) †  782  26,729 
Portfolio Recovery Associates, Inc. † S  986  58,697 
ProAssurance Corp.  607  26,951 
Prudential PLC (United Kingdom)  7,761  178,114 
PS Business Parks, Inc. R  591  49,343 
Public Storage R  4,100  702,535 
Ramco-Gershenson Properties Trust R  1,170  19,445 
Rayonier, Inc. R  2,400  85,320 
Regus PLC (United Kingdom)  13,970  43,441 
Republic Bancorp, Inc. Class A  605  14,351 
Resona Holdings, Inc. (Japan)  19,600  114,150 
Santander Consumer USA Holdings, Inc.  5,100  99,144 
Scentre Group (Australia) † R  5,850  17,652 
SCOR SE (France)  532  18,299 
Select Income REIT R  755  22,378 
Shopping Centres Australasia Property Group     
(Australia) R  9,810  15,911 
Skandinaviska Enskilda Banken AB (Sweden)  5,736  76,663 
Sovran Self Storage, Inc. R  191  14,755 
St James’s Place PLC (United Kingdom)  2,234  29,133 
Starwood Property Trust, Inc. R  578  13,739 
Starwood Waypoint Residential Trust † R  116  3,040 
State Street Corp.  12,000  807,120 
Stewart Information Services Corp.  1,342  41,615 
Sumitomo Mitsui Financial Group, Inc. (Japan)  3,300  138,248 
Sumitomo Warehouse Co., Ltd. (The) (Japan)  1,000  5,706 
Summit Hotel Properties, Inc. R  2,610  27,666 
Sun Hung Kai Properties, Ltd. (Hong Kong)  1,000  13,715 
Surya Semesta Internusa Tbk PT (Indonesia)  330,800  19,114 
Swedbank AB Class A (Sweden)  2,746  72,826 
Symetra Financial Corp.  1,645  37,407 
Third Point Reinsurance, Ltd. (Bermuda) †  1,702  25,973 
Tokio Marine Holdings, Inc. (Japan)  300  9,867 
Tokyu Fudosan Holdings Corp. (Japan)  10,200  80,448 
TSB Banking Group PLC 144A (United Kingdom) †  6,249  30,105 
Two Harbors Investment Corp. R  31,600  331,168 
UBS AG (Switzerland)  5,025  92,193 
UniCredit SpA (Italy)  14,625  122,459 
United Community Banks, Inc. †  980  16,043 
United Insurance Holdings Corp.  1,626  28,065 
Universal Health Realty Income Trust R  256  11,131 
Visa, Inc. Class A  5,672  1,195,147 

 

Putnam VT Global Asset Allocation Fund  9 

 


COMMON STOCKS (57.3%)* cont.  Shares  Value 
 
Financials cont.     
WageWorks, Inc. †  603  $29,071 
Wells Fargo & Co.  2,385  125,356 
Westfield Group (Australia)  4,695  31,654 
Westpac Banking Corp. (Australia)  2,533  80,922 
Wheelock and Co., Ltd. (Hong Kong)  16,000  66,784 
WisdomTree Investments, Inc. † S  2,794  34,534 
    22,276,990 
Health care (7.5%)     
AbbVie, Inc.  15,600  880,464 
ACADIA Pharmaceuticals, Inc. †  680  15,361 
Accuray, Inc. †  1,865  16,412 
Actavis PLC † S  200  44,610 
Actelion, Ltd. (Switzerland)  1,251  158,279 
Aegerion Pharmaceuticals, Inc. † S  526  16,879 
Aetna, Inc.  9,200  745,936 
Alere, Inc. †  1,037  38,805 
Align Technology, Inc. †  318  17,821 
Alkermes PLC †  571  28,738 
AMAG Pharmaceuticals, Inc. †  1,499  31,059 
Amedisys, Inc. † S  877  14,681 
AmSurg Corp. †  653  29,757 
Antares Pharma, Inc. † S  3,332  8,896 
Ariad Pharmaceuticals, Inc. † S  4,007  25,525 
Array BioPharma, Inc. †  1,920  8,755 
Asaleo Care, Ltd. (Australia) †  11,246  17,762 
Astellas Pharma, Inc. (Japan)  5,700  74,890 
AstraZeneca PLC (United Kingdom)  2,913  216,387 
AtriCure, Inc. †  821  15,090 
Auxilium Pharmaceuticals, Inc. † S  664  13,320 
Bayer AG (Germany)  1,305  184,323 
Biospecifics Technologies Corp. †  359  9,679 
Cardinal Health, Inc.  8,400  575,904 
Celgene Corp. †  10,200  875,976 
Celldex Therapeutics, Inc. † S  275  4,488 
Centene Corp. †  187  14,139 
Charles River Laboratories International, Inc. †  2,200  117,744 
Chemed Corp. S  716  67,104 
Coloplast A/S Class B (Denmark)  1,431  129,411 
Community Health Systems, Inc. †  931  42,239 
Computer Programs & Systems, Inc.  160  10,176 
Conatus Pharmaceuticals, Inc. † S  281  2,560 
Conmed Corp.  1,313  57,969 
Cubist Pharmaceuticals, Inc. † S  832  58,090 
Cyberonics, Inc. †  122  7,620 
DexCom, Inc. †  274  10,867 
Eli Lilly & Co.  7,463  463,975 
Enanta Pharmaceuticals, Inc. †  259  11,155 
Gilead Sciences, Inc. †  4,700  389,677 
GlaxoSmithKline PLC (United Kingdom)  5,852  156,636 
Glenmark Pharmaceuticals, Ltd. (India)  1,421  13,469 
Globus Medical, Inc. Class A †  817  19,543 
Greatbatch, Inc. †  1,613  79,134 
Grifols SA ADR (Spain)  956  42,112 
Hanger, Inc. †  1,006  31,639 
Health Net, Inc. †  2,592  107,672 
HealthSouth Corp.  214  7,676 
Henry Schein, Inc. †  3,300  391,611 

 

COMMON STOCKS (57.3%)* cont.  Shares  Value 
 
Health care cont.     
Hill-Rom Holdings, Inc. S  940  $39,019 
Hisamitsu Pharmaceutical Co., Inc. (Japan)  900  40,245 
Impax Laboratories, Inc. †  1,203  36,078 
Insulet Corp. †  488  19,359 
Insys Therapeutics, Inc. † S  1,122  35,040 
InterMune, Inc. † S  920  40,618 
Intuitive Surgical, Inc. †  900  370,620 
Isis Pharmaceuticals, Inc. † S  305  10,507 
Jazz Pharmaceuticals PLC †  1,121  164,798 
Johnson & Johnson  19,010  1,988,826 
Kindred Healthcare, Inc.  1,232  28,459 
McKesson Corp.  5,400  1,005,534 
MedAssets, Inc. †  1,716  39,193 
Medicines Co. (The) †  1,336  38,824 
Medidata Solutions, Inc. †  284  12,158 
Merck & Co., Inc.  818  47,321 
Merrimack Pharmaceuticals, Inc. †  2,796  20,383 
Mettler-Toledo International, Inc. †  600  151,908 
Myriad Genetics, Inc. † S  2,600  101,192 
Nanosphere, Inc. †  4,552  7,192 
Nektar Therapeutics †  1,315  16,858 
NewLink Genetics Corp. †  246  6,531 
Novartis AG (Switzerland)  1,464  132,566 
Novo Nordisk A/S Class B (Denmark)  2,055  94,582 
NPS Pharmaceuticals, Inc. † S  650  21,483 
NxStage Medical, Inc. †  885  12,717 
Omega Healthcare Investors, Inc. R S  516  19,020 
OraSure Technologies, Inc. †  6,823  58,746 
Pfizer, Inc.  48,523  1,440,163 
Prestige Brands Holdings, Inc. †  987  33,449 
Providence Service Corp. (The) †  1,068  39,078 
Questcor Pharmaceuticals, Inc.  297  27,470 
Receptos, Inc. †  372  15,847 
Repligen Corp. †  931  21,217 
Retrophin, Inc. † S  777  9,122 
Roche Holding AG-Genusschein (Switzerland)  608  181,344 
Sanofi (France)  2,358  250,491 
Sequenom, Inc. † S  3,018  11,680 
Shire PLC (United Kingdom)  1,588  124,199 
SIGA Technologies, Inc. † S  4,155  11,717 
Spectranetics Corp. (The) †  659  15,078 
STAAR Surgical Co. † S  2,332  39,178 
Steris Corp.  422  22,569 
Sucampo Pharmaceuticals, Inc. Class A † S  1,298  8,956 
Sunesis Pharmaceuticals, Inc. †  1,153  7,518 
Suzuken Co., Ltd. (Japan)  700  26,050 
Takeda Pharmaceutical Co., Ltd. (Japan)  1,000  46,385 
TESARO, Inc. † S  370  11,511 
Thoratec Corp. †  344  11,992 
Threshold Pharmaceuticals, Inc. †  2,138  8,466 
Trevena, Inc. † S  1,068  6,034 
Trinity Biotech PLC ADR (Ireland)  736  16,950 
Triple-S Management Corp. Class B (Puerto Rico) †  514  9,216 
United Therapeutics Corp. †  4,000  353,960 
WellCare Health Plans, Inc. †  809  60,400 
WellPoint, Inc.  7,300  785,553 
    14,457,385 

 

10  Putnam VT Global Asset Allocation Fund 

 


COMMON STOCKS (57.3%)* cont.  Shares  Value 
 
Technology (8.6%)     
Activision Blizzard, Inc.  23,800  $530,740 
Acxiom Corp. †  1,682  36,483 
Advanced Energy Industries, Inc. † S  676  13,013 
Alcatel-Lucent (France) †  8,575  30,622 
Amber Road, Inc. † S  338  5,452 
Amdocs, Ltd.  7,300  338,209 
Anixter International, Inc.  436  43,631 
AOL, Inc. †  456  18,144 
Apple, Inc.  23,204  2,156,348 
ASML Holding NV (Netherlands)  891  82,975 
Aspen Technology, Inc. †  774  35,914 
AVG Technologies NV (Netherlands) †  805  16,205 
Bottomline Technologies, Inc. †  294  8,796 
Brightcove, Inc. †  1,052  11,088 
Broadcom Corp. Class A  23,000  853,760 
Brother Industries, Ltd. (Japan)  4,200  72,760 
CACI International, Inc. Class A † S  590  41,424 
Cavium, Inc. †  238  11,819 
Ceva, Inc. †  1,266  18,699 
Cirrus Logic, Inc. †  682  15,509 
COLOPL, Inc. (Japan) †  600  16,465 
Commvault Systems, Inc. †  307  15,095 
Computer Sciences Corp.  10,700  676,240 
Cornerstone OnDemand, Inc. †  541  24,897 
CSG Systems International, Inc.  352  9,191 
Dun & Bradstreet Corp. (The)  2,800  308,560 
eBay, Inc. †  11,100  555,666 
Electronic Arts, Inc. †  1,300  46,631 
EnerSys  1,059  72,849 
Engility Holdings, Inc. †  656  25,099 
Entegris, Inc. †  2,308  31,723 
Extreme Networks, Inc. †  3,430  15,229 
F5 Networks, Inc. † S  5,000  557,200 
Facebook, Inc. Class A †  9,900  666,171 
Fairchild Semiconductor International, Inc. †  861  13,432 
FEI Co.  269  24,406 
Freescale Semiconductor, Ltd. † S  1,078  25,333 
GenMark Diagnostics, Inc. † S  3,161  42,768 
Gentex Corp.  5,300  154,177 
Google, Inc. Class A †  391  228,606 
Google, Inc. Class C †  29  16,683 
GT Advanced Technologies, Inc. †  534  9,932 
Hollysys Automation Technologies, Ltd. (China) †  700  17,143 
HomeAway, Inc. †  436  15,182 
Hoya Corp. (Japan)  3,100  103,002 
Iliad SA (France)  157  47,457 
inContact, Inc. †  1,204  11,065 
Inotera Memories, Inc. (Taiwan) †  15,000  27,279 
Integrated Silicon Solutions, Inc. †  2,854  42,154 
Internet Initiative Japan, Inc. (Japan)  600  14,742 
IntraLinks Holdings, Inc. †  2,337  20,776 
Japan Display, Inc. (Japan) †  2,400  14,736 
Konica Minolta Holdings, Inc. (Japan)  11,200  110,668 
L-3 Communications Holdings, Inc.  2,800  338,100 
Leidos Holdings, Inc.  5,600  214,704 
Lexmark International, Inc. Class A  487  23,454 

 

COMMON STOCKS (57.3%)* cont.  Shares  Value 
 
Technology cont.     
Magnachip Semiconductor Corp. (South Korea) †  582  $8,206 
Manhattan Associates, Inc. †  1,620  55,777 
Marvell Technology Group, Ltd.  26,900  385,477 
MeetMe, Inc. †  5,262  14,313 
Mellanox Technologies, Ltd. (Israel) † S  336  11,713 
Mentor Graphics Corp.  2,580  55,651 
Microsemi Corp. †  550  14,718 
Microsoft Corp.  4,711  196,449 
MTS Systems Corp.  218  14,772 
NetApp, Inc.  18,900  690,228 
Netscout Systems, Inc. †  567  25,141 
NIC, Inc.  602  9,542 
Nomura Research Institute, Ltd. (Japan)  1,500  47,234 
NTT Data Corp. (Japan)  900  34,559 
Omnivision Technologies, Inc. †  1,651  36,289 
Omron Corp. (Japan)  2,400  101,160 
Oracle Corp.  41,682  1,689,371 
Pegatron Corp. (Taiwan)  8,000  15,272 
Perficient, Inc. †  1,232  23,987 
Photronics, Inc. †  2,227  19,152 
Plantronics, Inc.  192  9,226 
Power Integrations, Inc.  373  21,462 
Proofpoint, Inc. †  366  13,710 
PTC, Inc. †  715  27,742 
Qihoo 360 Technology Co., Ltd. ADR (China) † S  200  18,408 
Quantum Corp. †  11,592  14,142 
RF Micro Devices, Inc. †  7,498  71,906 
Rockwell Automation, Inc.  3,000  375,480 
Rovi Corp. †  1,213  29,063 
Safeguard Scientifics, Inc. † S  772  16,050 
Samsung Electronics Co., Ltd. (South Korea)  30  39,197 
SanDisk Corp.  2,100  219,303 
SAP AG (Germany)  497  38,383 
Sartorius AG (Preference) (Germany)  153  18,455 
Semtech Corp. †  582  15,219 
Silergy Corp. (Taiwan) †  1,000  9,361 
Silicon Image, Inc. †  3,618  18,235 
SK Hynix, Inc. (South Korea) †  280  13,435 
Skyworth Digital Holdings, Ltd. (China)  62,000  29,598 
SoftBank Corp. (Japan)  1,900  141,471 
SolarWinds, Inc. †  1,032  39,897 
Sparton Corp. †  812  22,525 
Splunk, Inc. †  300  16,599 
SS&C Technologies Holdings, Inc. †  482  21,314 
Symantec Corp.  25,100  574,790 
Synaptics, Inc. † S  829  75,141 
Tech Data Corp. †  674  42,138 
Tencent Holdings, Ltd. (China)  2,500  38,127 
Toshiba Corp. (Japan)  12,000  56,029 
Tyler Technologies, Inc. †  388  35,389 
Ultimate Software Group, Inc. †  270  37,306 
Ultra Clean Holdings, Inc. †  3,509  31,756 
Unisys Corp. †  951  23,528 
United Internet AG (Germany)  1,392  61,328 
VeriFone Systems, Inc. †  1,071  39,359 
Verint Systems, Inc. †  476  23,348 

 

Putnam VT Global Asset Allocation Fund  11 

 


COMMON STOCKS (57.3%)* cont.  Shares  Value 
 
Technology cont.     
VeriSign, Inc. †  11,100  $541,791 
Western Digital Corp.  9,700  895,310 
Xilinx, Inc.  6,300  298,053 
XO Group, Inc. †  1,495  18,269 
Yandex NV Class A (Russia) †  841  29,973 
Yelp, Inc. † S  223  17,100 
Zynga, Inc. Class A †  2,672  8,577 
    16,414,910 
Transportation (1.2%)     
Aegean Marine Petroleum Network, Inc. (Greece) S  3,643  36,758 
Alaska Air Group, Inc.  6,000  570,300 
Central Japan Railway Co. (Japan)  1,000  142,639 
ComfortDelgro Corp., Ltd. (Singapore)  34,000  68,169 
Copa Holdings SA Class A (Panama)  77  10,978 
Delta Air Lines, Inc.  1,400  54,208 
Deutsche Lufthansa AG (Germany)  2,541  54,557 
Deutsche Post AG (Germany)  2,503  90,517 
Diana Shipping, Inc. (Greece) †  1,590  17,315 
Hawaiian Holdings, Inc. † S  2,513  34,453 
International Consolidated Airlines Group SA     
(Spain) †  12,970  82,246 
Japan Airlines Co., Ltd. (Japan) UR  1,300  71,862 
Matson, Inc.  344  9,233 
Quality Distribution, Inc. †  4,766  70,823 
Republic Airways Holdings, Inc. †  1,925  20,867 
SkyWest, Inc.  1,307  15,972 
Southwest Airlines Co.  21,900  588,234 
Spirit Airlines, Inc. †  648  40,980 
StealthGas, Inc. (Greece) †  5,940  65,934 
Swift Transportation Co. † S  3,205  80,862 
Universal Truckload Services, Inc.  115  2,916 
XPO Logistics, Inc. †  939  26,874 
Yamato Transport Co., Ltd. (Japan)  2,400  49,727 
    2,206,424 
Utilities and power (2.2%)     
Abengoa Yield PLC (United Kingdom) †  353  13,350 
Centrica PLC (United Kingdom)  18,878  100,994 
China Power New Energy Development Co., Ltd.     
(China) †  220,000  13,625 
China Water Affairs Group, Ltd. (China)  62,000  21,679 
China WindPower Group, Ltd. (China) †  250,000  19,999 
Chubu Electric Power Co., Inc. (Japan) †  1,000  12,428 
CMS Energy Corp.  11,400  355,110 
Edison International  9,700  563,667 
Enel SpA (Italy)  14,735  85,831 
ENI SpA (Italy)  4,315  118,052 
Entergy Corp.  15,800  1,297,022 
Kinder Morgan, Inc.  2,300  83,398 
Origin Energy, Ltd. (Australia)  2,700  37,222 
PG&E Corp. S  2,700  129,654 
PPL Corp.  18,500  657,305 
Red Electrica Corporacion SA (Spain)  1,429  130,710 
Tokyo Gas Co., Ltd. (Japan)  26,000  151,937 
UGI Corp. S  6,900  348,450 
United Utilities Group PLC (United Kingdom)  5,273  79,594 
Veolia Environnement SA (France)  2,124  40,470 
    4,260,497 
 
Total common stocks (cost $90,220,388)    $109,884,924 

 

CORPORATE BONDS AND NOTES (17.3%)*  Principal amount  Value 
 
Basic materials (0.8%)       
Ainsworth Lumber Co., Ltd. 144A sr. notes 7 1/2s,     
2017 (Canada)    $7,000  $7,368 
Allegheny Technologies, Inc. sr. unsec.       
unsub. notes 5.95s, 2021    15,000  16,562 
ArcelorMittal SA sr. unsec. bonds 10.35s, 2019       
(France)    133,000  170,240 
ArcelorMittal SA sr. unsec. unsub. notes 7 1/2s,       
2039 (France)    7,000  7,700 
Archer Daniels-Midland Co. sr. unsec.       
notes 5.45s, 2018    128,000  145,400 
Boise Cascade Co. company guaranty sr. unsec.       
notes 6 3/8s, 2020    20,000  21,500 
Celanese US Holdings, LLC company       
guaranty sr. unsec. unsub. notes 4 5/8s, 2022       
(Germany)    10,000  10,025 
Celanese US Holdings, LLC sr. notes 5 7/8s, 2021       
(Germany)    25,000  27,563 
CF Industries, Inc. company guaranty sr. unsec.       
notes 5 3/8s, 2044    11,000  11,759 
CF Industries, Inc. company guaranty sr. unsec.       
notes 5.15s, 2034    8,000  8,470 
CF Industries, Inc. company guaranty sr. unsec.       
unsub. notes 7 1/8s, 2020    18,000  22,171 
Compass Minerals International, Inc. 144A company     
guaranty sr. unsec. notes 4 7/8s, 2024    5,000  5,000 
CPG Merger Sub, LLC 144A company       
guaranty sr. unsec. unsub. notes 8s, 2021    12,000  12,660 
Cytec Industries, Inc. sr. unsec.       
unsub. notes 3 1/2s, 2023    35,000  34,490 
E.I. du Pont de Nemours & Co. sr. notes 3 5/8s, 2021  95,000  100,546 
Eldorado Gold Corp. 144A sr. unsec. notes 6 1/8s,     
2020 (Canada)    4,000  4,043 
Ferro Corp. sr. unsec. notes 7 7/8s, 2018    30,000  31,350 
First Quantum Minerals, Ltd. 144A company       
guaranty sr. unsec. notes 7s, 2021 (Canada)    10,000  10,288 
FMG Resources August 2006 Pty, Ltd. 144A       
sr. notes 8 1/4s, 2019 (Australia)    17,000  18,509 
FMG Resources August 2006 Pty, Ltd. 144A       
sr. notes 6 7/8s, 2018 (Australia)    12,000  12,570 
Glencore Finance Canada, Ltd. 144A company       
guaranty sr. unsec. unsub. bonds 5.8s, 2016       
(Canada)    19,000  20,906 
Glencore Funding, LLC 144A company       
guaranty sr. unsec. unsub. notes 4 5/8s, 2024    16,000  16,508 
HD Supply, Inc. company guaranty sr. unsec.       
notes 7 1/2s, 2020    23,000  25,128 
HD Supply, Inc. company guaranty sr. unsec.       
unsub. notes 11 1/2s, 2020    13,000  15,633 
Hexion U.S. Finance Corp. company       
guaranty sr. notes 6 5/8s, 2020    7,000  7,420 
Hexion U.S. Finance Corp./Hexion Nova Scotia       
Finance, ULC company guaranty notes 9s, 2020    4,000  4,080 
Hexion U.S. Finance Corp./Hexion Nova Scotia       
Finance, ULC company guaranty sr. notes 8 7/8s, 2018  14,000  14,560 
Huntsman International, LLC company       
guaranty sr. unsec. sub. notes 8 5/8s, 2021    17,000  18,785 
Huntsman International, LLC company       
guaranty sr. unsec. sub. notes 8 5/8s, 2020    4,000  4,330 
Huntsman International, LLC company       
guaranty sr. unsec. unsub. notes 4 7/8s, 2020    20,000  20,700 
IAMGOLD Corp. 144A company guaranty sr. unsec.     
notes 6 3/4s, 2020 (Canada)    10,000  9,250 

 

12  Putnam VT Global Asset Allocation Fund 

 


CORPORATE BONDS AND NOTES (17.3%)* cont.  Principal amount  Value 
 
Basic materials cont.     
JM Huber Corp. 144A sr. unsec. notes 9 7/8s, 2019  $27,000  $30,746 
Louisiana-Pacific Corp. company     
guaranty sr. unsec. unsub. notes 7 1/2s, 2020  20,000  22,000 
Lubrizol Corp. (The) sr. unsec. notes 8 7/8s, 2019  50,000  64,214 
Methanex Corp. sr. unsec. unsub. notes 3 1/4s,     
2019 (Canada)  6,000  6,149 
Mosaic Co. (The) sr. unsec. unsub. notes 5 5/8s, 2043  3,000  3,413 
Mosaic Co. (The) sr. unsec. unsub. notes 5.45s, 2033  2,000  2,238 
New Gold, Inc. 144A company guaranty sr. unsec.     
unsub. notes 7s, 2020 (Canada)  25,000  26,719 
New Gold, Inc. 144A sr. unsec. notes 6 1/4s, 2022     
(Canada)  10,000  10,358 
Novelis, Inc. company guaranty sr. unsec.     
notes 8 3/4s, 2020  35,000  38,850 
Packaging Corp. of America sr. unsec.     
unsub. notes 4 1/2s, 2023  45,000  48,161 
PQ Corp. 144A sr. notes 8 3/4s, 2018  17,000  18,403 
Rio Tinto Finance USA PLC company     
guaranty sr. unsec. unsub. notes 1 5/8s, 2017     
(United Kingdom)  130,000  131,527 
Rio Tinto Finance USA, Ltd. company     
guaranty sr. unsec. notes 9s, 2019 (Australia)  62,000  81,285 
Rock-Tenn Co. company guaranty sr. unsec.     
unsub. notes 4.45s, 2019  38,000  41,227 
Roofing Supply Group, LLC/Roofing Supply     
Finance, Inc. 144A company guaranty sr. unsec.     
notes 10s, 2020  30,000  31,950 
Ryerson, Inc./Joseph T Ryerson & Son, Inc.     
company guaranty sr. notes 9s, 2017  14,000  14,980 
Sealed Air Corp. 144A sr. unsec. notes 6 1/2s, 2020  14,000  15,750 
Sealed Air Corp. 144A sr. unsec. notes 5 1/4s, 2023  14,000  14,280 
Smurfit Kappa Treasury Funding, Ltd. company     
guaranty sr. unsub. notes 7 1/2s, 2025 (Ireland)  5,000  5,750 
Steel Dynamics, Inc. company guaranty sr. unsec.     
unsub. notes 6 3/8s, 2022  3,000  3,263 
Steel Dynamics, Inc. company guaranty sr. unsec.     
unsub. notes 6 1/8s, 2019  4,000  4,350 
Steel Dynamics, Inc. company guaranty sr. unsec.     
unsub. notes 5 1/4s, 2023  3,000  3,105 
Taminco Global Chemical Corp. 144A     
sr. notes 9 3/4s, 2020 (Belgium)  23,000  25,703 
TMS International Corp. 144A company     
guaranty sr. unsec. notes 7 5/8s, 2021  10,000  10,650 
Tronox Finance, LLC company guaranty sr. unsec.     
unsub. notes 6 3/8s, 2020  3,000  3,098 
USG Corp. 144A company guaranty sr. unsec.     
notes 5 7/8s, 2021  3,000  3,188 
Weekley Homes, LLC/Weekley Finance Corp.     
sr. unsec. bonds 6s, 2023  10,000  10,000 
Weyerhaeuser Co. sr. unsec. unsub. notes 7 3/8s,     
2032 R  60,000  81,070 
    1,587,941 
Capital goods (0.6%)     
ADS Waste Holdings, Inc. company     
guaranty sr. unsec. notes 8 1/4s, 2020  43,000  46,333 
American Axle & Manufacturing, Inc. company     
guaranty sr. unsec. notes 7 3/4s, 2019  32,000  36,880 
B/E Aerospace, Inc. sr. unsec.     
unsub. notes 6 7/8s, 2020  4,000  4,345 
B/E Aerospace, Inc. sr. unsec.     
unsub. notes 5 1/4s, 2022  14,000  15,243 

 

CORPORATE BONDS AND NOTES (17.3%)* cont.  Principal amount  Value 
 
Capital goods cont.     
Belden, Inc. 144A company guaranty sr. unsec.     
sub. notes 5 1/4s, 2024  $10,000  $10,075 
Berry Plastics Corp. company     
guaranty notes 5 1/2s, 2022  10,000  10,056 
Berry Plastics Corp. company     
guaranty unsub. notes 9 3/4s, 2021  20,000  22,800 
BlueLine Rental Finance Corp. 144A sr. notes 7s, 2019  13,000  13,878 
BOE Merger Corp. 144A sr. unsec. notes 9 1/2s,     
2017 ‡‡  20,000  21,100 
Boeing Capital Corp. sr. unsec.     
unsub. notes 4.7s, 2019  40,000  45,216 
Bombardier, Inc. 144A sr. notes 6 1/8s, 2023     
(Canada)  10,000  10,300 
Bombardier, Inc. 144A sr. unsec. notes 7 3/4s,     
2020 (Canada)  20,000  22,550 
Briggs & Stratton Corp. company     
guaranty sr. unsec. notes 6 7/8s, 2020  45,000  50,288 
Covidien International Finance SA company     
guaranty sr. unsec. unsub. notes 6s, 2017     
(Luxembourg)  130,000  148,708 
Crown Americas, LLC/Crown Americas Capital Corp.     
IV company guaranty sr. unsec. notes 4 1/2s, 2023  42,000  40,908 
Deere & Co. sr. unsec. unsub. notes 2.6s, 2022  85,000  83,109 
Exide Technologies sr. notes 8 5/8s,     
2018 (In default) †  5,000  3,000 
Gates Global LLC/Gates Global Co. 144A sr. unsec.     
notes 6s, 2022  10,000  10,000 
General Dynamics Corp. company     
guaranty sr. unsec. unsub. notes 3.6s, 2042  60,000  54,903 
General Dynamics Corp. company     
guaranty sr. unsec. unsub. notes 2 1/4s, 2022  30,000  28,354 
Legrand France SA sr. unsec. unsub. debs 8 1/2s,     
2025 (France)  129,000  179,407 
Manitowoc Co., Inc. (The) company     
guaranty sr. unsec. notes 5 7/8s, 2022  15,000  16,350 
MasTec, Inc. company guaranty sr. unsec.     
unsub. notes 4 7/8s, 2023  55,000  54,175 
Oshkosh Corp. company guaranty sr. unsec.     
notes 5 3/8s, 2022  10,000  10,300 
Pittsburgh Glass Works, LLC 144A company     
guaranty sr. notes 8s, 2018  17,000  18,488 
Raytheon Co. sr. unsec. notes 4 7/8s, 2040  20,000  22,034 
Reynolds Group Issuer, Inc./Reynolds Group     
Issuer, LLC/Reynolds Group Issuer Lu company     
guaranty sr. notes 5 3/4s, 2020  10,000  10,550 
Tenneco, Inc. company     
guaranty sr. unsub. notes 6 7/8s, 2020  14,000  15,243 
Terex Corp. company guaranty sr. unsec.     
unsub. notes 6 1/2s, 2020  4,000  4,342 
Terex Corp. company guaranty sr. unsec.     
unsub. notes 6s, 2021  24,000  25,860 
TransDigm, Inc. company guaranty sr. unsec.     
sub. notes 7 1/2s, 2021  20,000  22,150 
TransDigm, Inc. 144A sr. unsec.     
sub. notes 6 1/2s, 2024  3,000  3,124 
United Technologies Corp. sr. unsec.     
notes 5 3/8s, 2017  107,000  121,453 
Vander Intermediate Holding II Corp. 144A     
sr. unsec. notes 9 3/4s, 2019 ‡‡  10,000  10,650 
    1,192,172 

 

Putnam VT Global Asset Allocation Fund  13 

 


CORPORATE BONDS AND NOTES (17.3%)* cont.  Principal amount  Value 
 
Communication services (1.7%)       
Adelphia Communications Corp. escrow       
bonds zero %, 2014    $55,000  $385 
American Tower Corp. sr. unsec. notes 7s, 2017 R    75,000  87,282 
AT&T, Inc. sr. unsec. unsub. notes 1.7s, 2017    130,000  131,512 
Cablevision Systems Corp. sr. unsec.       
unsub. notes 8 5/8s, 2017    40,000  46,550 
Cablevision Systems Corp. sr. unsec.       
unsub. notes 8s, 2020    7,000  7,949 
Cablevision Systems Corp. sr. unsec.       
unsub. notes 7 3/4s, 2018    10,000  11,300 
CCO Holdings, LLC/CCO Holdings Capital Corp.       
company guaranty sr. unsec. notes 6 1/2s, 2021    14,000  14,910 
CCO Holdings, LLC/CCO Holdings Capital Corp.       
company guaranty sr. unsec. notes 5 1/4s, 2022    7,000  7,140 
CCO Holdings, LLC/CCO Holdings Capital Corp.       
company guaranty sr. unsec. unsub. bonds 5 1/8s, 2023  7,000  7,061 
CCO Holdings, LLC/CCO Holdings Capital Corp.       
company guaranty sr. unsec. unsub. notes 7 3/8s, 2020  13,000  14,186 
CCO Holdings, LLC/CCO Holdings Capital Corp.       
company guaranty sr. unsec. unsub. notes 6 5/8s, 2022  13,000  13,975 
CCO Holdings, LLC/CCO Holdings Capital Corp.       
company guaranty sr. unsub. notes 7s, 2019    20,000  21,075 
CenturyLink, Inc. sr. unsec. unsub. notes 6 3/4s, 2023  14,000  15,295 
CenturyLink, Inc. sr. unsec. unsub. notes 5 5/8s, 2020  4,000  4,220 
Comcast Corp. company guaranty sr. unsec.       
unsub. bonds 6 1/2s, 2017    55,000  62,561 
Comcast Corp. company guaranty sr. unsec.       
unsub. notes 6.95s, 2037    114,000  153,677 
Comcast Corp. company guaranty sr. unsec.       
unsub. notes 6 1/2s, 2035    17,000  22,024 
Crown Castle International Corp. sr. unsec.       
notes 5 1/4s, 2023 R    14,000  14,595 
Crown Castle International Corp. sr. unsec.       
unsub. notes 4 7/8s, 2022 R    7,000  7,228 
Crown Castle Towers, LLC 144A company       
guaranty sr. notes 4.883s, 2020    15,000  16,569 
CSC Holdings, LLC sr. unsec. unsub. notes 6 3/4s, 2021  13,000  14,365 
CSC Holdings, LLC 144A sr. unsec. notes 5 1/4s, 2024  13,000  12,789 
Deutsche Telekom International Finance BV company     
guaranty 8 3/4s, 2030 (Netherlands)    73,000  106,762 
DISH DBS Corp. company guaranty sr. unsec.       
notes 7 7/8s, 2019    37,000  43,938 
DISH DBS Corp. company guaranty sr. unsec.       
notes 6 3/4s, 2021    14,000  15,960 
Frontier Communications Corp. sr. unsec.       
unsub. notes 7 5/8s, 2024    4,000  4,290 
Hughes Satellite Systems Corp. company       
guaranty sr. notes 6 1/2s, 2019    23,000  25,645 
Hughes Satellite Systems Corp. company       
guaranty sr. unsec. notes 7 5/8s, 2021    19,000  21,755 
Intelsat Jackson Holdings SA company       
guaranty sr. unsec. bonds 6 5/8s, 2022 (Bermuda)  7,000  7,306 
Intelsat Jackson Holdings SA company       
guaranty sr. unsec. notes 7 1/2s, 2021 (Bermuda)  17,000  18,615 
Intelsat Luxembourg SA company       
guaranty sr. unsec. bonds 8 1/8s, 2023       
(Luxembourg)    33,000  35,681 
Intelsat Luxembourg SA company       
guaranty sr. unsec. bonds 7 3/4s, 2021       
(Luxembourg)    40,000  42,350 

 

CORPORATE BONDS AND NOTES (17.3%)* cont.  Principal amount  Value 
 
Communication services cont.     
Koninklijke (Royal) KPN NV sr. unsec.     
unsub. bonds 8 3/8s, 2030 (Netherlands)  $30,000  $42,512 
Level 3 Financing, Inc. company     
guaranty sr. unsec. unsub. notes 8 5/8s, 2020  17,000  19,040 
Level 3 Financing, Inc. company     
guaranty sr. unsec. unsub. notes 8 1/8s, 2019  5,000  5,456 
Level 3 Financing, Inc. company     
guaranty sr. unsec. unsub. notes 7s, 2020  17,000  18,573 
Level 3 Financing, Inc. 144A company     
guaranty sr. unsec. notes 6 1/8s, 2021  5,000  5,356 
Mediacom, LLC/Mediacom Capital Corp. sr. unsec.     
unsub. notes 7 1/4s, 2022  10,000  10,900 
Nil International Telecom SCA 144A company     
guaranty sr. unsec. notes 7 7/8s, 2019     
(Luxembourg)  25,000  21,625 
Orange SA sr. unsec. unsub. notes 4 1/8s,     
2021 (France)  46,000  49,400 
PAETEC Holding Corp. company guaranty sr. unsec.     
notes 9 7/8s, 2018  20,000  21,550 
Quebecor Media, Inc. sr. unsec.     
unsub. notes 5 3/4s, 2023 (Canada)  13,000  13,358 
Qwest Corp. sr. unsec. notes 6 3/4s, 2021  95,000  109,985 
Qwest Corp. sr. unsec. unsub. notes 7 1/4s, 2025  25,000  29,402 
Rogers Communications, Inc. company guaranty     
sr. unsec. unsub. notes 4 1/2s, 2043 (Canada)  85,000  82,734 
SBA Communications Corp. 144A sr. unsec.     
notes 4 7/8s, 2022  10,000  9,875 
SBA Telecommunications, Inc. company     
guaranty sr. unsec. unsub. notes 5 3/4s, 2020  4,000  4,240 
SES SA 144A company guaranty sr. unsec.     
notes 3.6s, 2023 (France)  42,000  42,456 
Sprint Capital Corp. company guaranty 6 7/8s, 2028  85,000  85,850 
Sprint Communications, Inc. sr. unsec.     
unsub. notes 8 3/8s, 2017  17,000  19,848 
Sprint Communications, Inc. sr. unsec.     
unsub. notes 7s, 2020  10,000  11,000 
Sprint Communications, Inc. 144A company     
guaranty sr. unsec. notes 9s, 2018  40,000  48,500 
Sprint Corp. 144A company guaranty sr. unsec.     
notes 7 7/8s, 2023  33,000  36,713 
Sprint Corp. 144A company guaranty sr. unsec.     
notes 7 1/4s, 2021  17,000  18,743 
T-Mobile USA, Inc. company guaranty sr. unsec.     
unsub. notes 6.836s, 2023  3,000  3,266 
T-Mobile USA, Inc. company guaranty sr. unsec.     
unsub. notes 6.633s, 2021  7,000  7,595 
T-Mobile USA, Inc. company guaranty sr. unsec.     
unsub. notes 6 5/8s, 2023  23,000  24,955 
T-Mobile USA, Inc. company guaranty sr. unsec.     
unsub. notes 6.464s, 2019  7,000  7,368 
T-Mobile USA, Inc. company guaranty sr. unsec.     
unsub. notes 6 1/4s, 2021  20,000  21,325 
T-Mobile USA, Inc. company guaranty sr. unsec.     
unsub. notes 6 1/8s, 2022  17,000  18,063 
TCI Communications, Inc. sr. unsec.     
unsub. notes 7 1/8s, 2028  65,000  86,358 
Telefonica Emisiones SAU company     
guaranty sr. unsec. unsub. notes 3.192s, 2018     
(Spain)  150,000  156,761 
Time Warner Cable, Inc. company     
guaranty sr. notes 7.3s, 2038  1,000  1,345 

 

14  Putnam VT Global Asset Allocation Fund 

 


CORPORATE BONDS AND NOTES (17.3%)* cont.  Principal amount  Value 
 
Communication services cont.     
Time Warner Cable, Inc. company     
guaranty sr. unsec. unsub. notes 6 3/4s, 2039  $25,000  $32,220 
Time Warner Entertainment Co. LP company     
guaranty sr. unsec. bonds 8 3/8s, 2033  156,000  228,872 
Time Warner Entertainment Co. LP company     
guaranty sr. unsec. bonds 8 3/8s, 2023  4,000  5,410 
Verizon Communications, Inc. sr. unsec.     
unsub. notes 6.4s, 2033  350,000  429,236 
Verizon New Jersey, Inc. company     
guaranty sr. unsec. unsub. bonds 8s, 2022  45,000  56,180 
Verizon Pennsylvania, Inc. company     
guaranty sr. unsec. bonds 8.35s, 2030  50,000  65,102 
Videotron, Ltd. company guaranty sr. unsec.     
unsub. notes 5s, 2022 (Canada)  20,000  20,550 
Vodafone Group PLC sr. unsec.     
unsub. notes 1 1/4s, 2017 (United Kingdom)  225,000  223,643 
WideOpenWest Finance, LLC/WideOpenWest     
Capital Corp. company guaranty sr. unsec.     
notes 10 1/4s, 2019  24,000  26,970 
Windstream Corp. company guaranty sr. unsec.     
unsub. notes 7 7/8s, 2017  33,000  37,991 
Windstream Corp. company guaranty sr. unsec.     
unsub. notes 7 3/4s, 2021  14,000  15,295 
Windstream Corp. company guaranty sr. unsec.     
unsub. notes 6 3/8s, 2023  10,000  10,138 
    3,194,709 
Consumer cyclicals (2.3%)     
21st Century Fox America, Inc. company     
guaranty sr. unsec. debs. 7 3/4s, 2024  50,000  63,905 
21st Century Fox America, Inc. company     
guaranty sr. unsec. unsub. debs. 7 3/4s, 2045  85,000  122,551 
Academy, Ltd./Academy Finance Corp. 144A company   
guaranty sr. unsec. notes 9 1/4s, 2019  5,000  5,363 
Amazon.com, Inc. sr. unsec. notes 1.2s, 2017  128,000  127,229 
AMC Entertainment, Inc. company     
guaranty sr. sub. notes 9 3/4s, 2020  15,000  17,100 
AMC Entertainment, Inc. company     
guaranty sr. unsec. sub. notes 5 7/8s, 2022  10,000  10,400 
American Media, Inc. 144A notes 13 1/2s, 2018  3,167  3,341 
Autonation, Inc. company guaranty sr. unsec.     
notes 6 3/4s, 2018  7,000  8,085 
Autonation, Inc. company guaranty sr. unsec.     
unsub. notes 5 1/2s, 2020  18,000  19,845 
Beazer Homes USA, Inc. company     
guaranty sr. unsec. notes 8 1/8s, 2016  10,000  11,050 
Bon-Ton Department Stores, Inc. (The) company     
guaranty notes 10 5/8s, 2017  35,000  35,044 
Bon-Ton Department Stores, Inc. (The) company     
guaranty notes 8s, 2021  4,000  3,810 
Brookfield Residential Properties, Inc. 144A     
company guaranty sr. unsec. notes 6 1/2s,     
2020 (Canada)  23,000  24,323 
Brookfield Residential Properties, Inc./     
Brookfield Residential US Corp. 144A company     
guaranty sr. unsec. notes 6 1/8s, 2022 (Canada)  10,000  10,352 
Building Materials Corp. of America 144A company     
guaranty sr. notes 7 1/2s, 2020  20,000  21,300 
Building Materials Corp. of America 144A company     
guaranty sr. notes 7s, 2020  7,000  7,420 
Building Materials Corp. of America 144A     
sr. unsec. notes 6 3/4s, 2021  7,000  7,543 

 

CORPORATE BONDS AND NOTES (17.3%)* cont.  Principal amount  Value 
 
Consumer cyclicals cont.     
Burlington Coat Factory Warehouse Corp. company     
guaranty sr. unsec. notes 10s, 2019  $17,000  $18,551 
Caesars Entertainment Operating Co., Inc. company     
guaranty sr. notes 9s, 2020  13,000  10,823 
CBS Corp. company guaranty sr. unsec.     
debs. 7 7/8s, 2030  60,000  80,627 
CBS Corp. sr. unsec. unsub. notes 4 1/2s, 2021  70,000  76,445 
CBS Outdoor Americas Capital, LLC/CBS Outdoor     
Americas Capital Corp. 144A company     
guaranty sr. unsec. notes 5 5/8s, 2024  17,000  17,595 
CCM Merger, Inc. 144A company guaranty sr. unsec.     
notes 9 1/8s, 2019  14,000  14,980 
Cedar Fair LP/Canada’s Wonderland Co./Magnum     
Management Corp. company guaranty sr. unsec.     
notes 5 1/4s, 2021  13,000  13,390 
Cedar Fair LP/Canada’s Wonderland Co./Magnum     
Management Corp. 144A company     
guaranty sr. unsec. notes 5 3/8s, 2024  4,000  4,050 
Ceridian, LLC company guaranty sr. unsec.     
notes 12 1/4s, 2015 ‡‡  12,000  12,012 
Ceridian, LLC sr. unsec. notes 11 1/4s, 2015  20,000  20,020 
Ceridian, LLC/Comdata, Inc. 144A company     
guaranty sr. unsec. unsub. notes 8 1/8s, 2017  10,000  10,050 
Cinemark USA, Inc. company guaranty sr. unsec.     
notes 5 1/8s, 2022  3,000  3,071 
Cinemark USA, Inc. company guaranty sr. unsec.     
notes 4 7/8s, 2023  4,000  3,990 
Cinemark USA, Inc. company guaranty sr. unsec.     
sub. notes 7 3/8s, 2021  5,000  5,513 
Clear Channel Communications, Inc. company     
guaranty sr. notes 9s, 2021  23,000  24,610 
Clear Channel Communications, Inc. company     
guaranty sr. notes 9s, 2019  30,000  31,988 
Clear Channel Worldwide Holdings, Inc. company     
guaranty sr. unsec. notes 7 5/8s, 2020  20,000  21,600 
Clear Channel Worldwide Holdings, Inc. company     
guaranty sr. unsec. unsub. notes 6 1/2s, 2022  14,000  15,085 
Cumulus Media Holdings, Inc. company     
guaranty sr. unsec. unsub. notes 7 3/4s, 2019  14,000  14,753 
Dana Holding Corp. sr. unsec. unsub. notes 6s, 2023  17,000  18,020 
Dana Holding Corp. sr. unsec.     
unsub. notes 5 3/8s, 2021  4,000  4,180 
DH Services Luxembourg Sarl 144A company     
guaranty sr. unsec. notes 7 3/4s, 2020     
(Luxembourg)  23,000  24,668 
Dollar General Corp. sr. unsec. notes 3 1/4s, 2023  65,000  61,389 
Entercom Radio, LLC company guaranty sr. unsec.     
sub. notes 10 1/2s, 2019  20,000  22,900 
Expedia, Inc. company guaranty sr. unsec.     
unsub. notes 5.95s, 2020  90,000  101,831 
FelCor Lodging LP company guaranty sr. notes     
10s, 2014 R  14,000  14,263 
FelCor Lodging LP company guaranty sr. notes     
6 3/4s, 2019 R  30,000  31,913 
FelCor Lodging LP company guaranty sr. notes     
5 5/8s, 2023 R  5,000  5,150 
First Cash Financial Services, Inc. 144A     
sr. unsec. notes 6 3/4s, 2021 (Mexico)  7,000  7,455 
Ford Motor Co. sr. unsec. unsub. bonds 7.7s, 2097  24,000  29,439 
Ford Motor Co. sr. unsec. unsub. notes 9.98s, 2047  25,000  38,863 
Ford Motor Co. sr. unsec. unsub. notes 7.4s, 2046  40,000  54,496 

 

Putnam VT Global Asset Allocation Fund  15 

 


CORPORATE BONDS AND NOTES (17.3%)* cont.  Principal amount  Value 
 
Consumer cyclicals cont.     
Ford Motor Credit Co., LLC sr. unsec.     
notes 8 1/8s, 2020  $140,000  $178,586 
Gannett Co., Inc. 144A company     
guaranty sr. unsec. notes 5 1/8s, 2020  10,000  10,300 
Gannett Co., Inc. 144A company     
guaranty sr. unsec. notes 5 1/8s, 2019  13,000  13,520 
Garda World Security Corp. 144A company     
guaranty sr. unsec. unsub. notes 7 1/4s,     
2021 (Canada)  20,000  21,024 
General Motors Financial Co., Inc. company     
guaranty sr. unsec. notes 3 1/4s, 2018  39,000  39,585 
General Motors Financial Co., Inc. company     
guaranty sr. unsec. notes 2 3/4s, 2016  56,000  56,840 
Gibson Brands, Inc. 144A sr. notes 8 7/8s, 2018  10,000  10,313 
GLP Capital LP/GLP Financing II, Inc. 144A     
company guaranty sr. unsec. notes 4 7/8s, 2020  17,000  17,510 
GLP Capital LP/GLP Financing II, Inc. 144A     
company guaranty sr. unsec. notes 4 3/8s, 2018  34,000  35,105 
Gray Television, Inc. company guaranty sr. unsec.     
notes 7 1/2s, 2020  23,000  24,783 
Great Canadian Gaming Corp. 144A company     
guaranty sr. unsec. notes 6 5/8s, 2022 (Canada)  CAD  27,000  26,988 
Griffey Intermediate, Inc./Griffey Finance     
Sub, LLC 144A sr. unsec. notes 7s, 2020  $14,000  12,828 
Hanesbrands, Inc. company guaranty sr. unsec.     
notes 6 3/8s, 2020  17,000  18,381 
Historic TW, Inc. company guaranty sr. unsec.     
unsub. bonds 9.15s, 2023  40,000  55,410 
Home Depot, Inc. (The) sr. unsec.     
unsub. notes 5.4s, 2016  65,000  70,141 
Host Hotels & Resorts LP sr. unsec.     
unsub. notes 6s, 2021 R  31,000  35,717 
Host Hotels & Resorts LP sr. unsec.     
unsub. notes 5 1/4s, 2022 R  44,000  48,507 
Howard Hughes Corp. (The) 144A sr. unsec.     
notes 6 7/8s, 2021  20,000  21,400 
Hyatt Hotels Corp. sr. unsec.     
unsub. notes 3 3/8s, 2023  15,000  14,644 
Igloo Holdings Corp. 144A sr. unsec.     
unsub. notes 8 1/4s, 2017 ‡‡  24,000  24,480 
Isle of Capri Casinos, Inc. company     
guaranty sr. unsec. notes 5 7/8s, 2021  7,000  7,079 
Isle of Capri Casinos, Inc. company     
guaranty sr. unsec. sub. notes 8 7/8s, 2020  13,000  13,943 
Isle of Capri Casinos, Inc. company     
guaranty sr. unsec. unsub. notes 7 3/4s, 2019  17,000  18,148 
Jeld-Wen, Inc. 144A sr. notes 12 1/4s, 2017  40,000  43,200 
Jo-Ann Stores Holdings, Inc. 144A sr. unsec.     
notes 9 3/4s, 2019 ‡‡  15,000  15,338 
Jo-Ann Stores, Inc. 144A sr. unsec. notes 8 1/8s, 2019  45,000  46,125 
Johnson Controls, Inc. sr. unsec. notes 4.95s, 2064  65,000  65,846 
K Hovnanian Enterprises, Inc. 144A     
sr. notes 7 1/4s, 2020  13,000  14,040 
L Brands, Inc. company guaranty sr. unsec.     
notes 6 5/8s, 2021  23,000  26,163 
L Brands, Inc. sr. unsec. notes 5 5/8s, 2022  7,000  7,578 
Lamar Media Corp. company     
guaranty sr. sub. notes 5 7/8s, 2022  14,000  14,998 
Lamar Media Corp. 144A company     
guaranty sr. unsec. notes 5 3/8s, 2024  15,000  15,525 

 

CORPORATE BONDS AND NOTES (17.3%)* cont.  Principal amount  Value 
 
Consumer cyclicals cont.     
Lender Processing Services, Inc. company     
guaranty sr. unsec. unsub. notes 5 3/4s, 2023  $20,000  $21,525 
Lennar Corp. company guaranty sr. unsec.     
unsub. notes 4 3/4s, 2022  22,000  21,890 
Lennar Corp. company guaranty sr. unsec.     
unsub. notes 4 1/2s, 2019  7,000  7,166 
M/I Homes, Inc. company guaranty sr. unsec.     
notes 8 5/8s, 2018  65,000  69,225 
Macy’s Retail Holdings, Inc. company     
guaranty sr. unsec. notes 6.9s, 2029  45,000  56,287 
Macy’s Retail Holdings, Inc. company     
guaranty sr. unsec. notes 5 1/8s, 2042  45,000  47,794 
Macy’s Retail Holdings, Inc. company     
guaranty sr. unsec. notes 4.3s, 2043  95,000  89,339 
Marriott International, Inc. sr. unsec.     
unsub. notes 3s, 2019  135,000  139,788 
Masonite International Corp. 144A company     
guaranty sr. notes 8 1/4s, 2021  50,000  54,500 
Mattamy Group Corp. 144A sr. unsec. notes 6 1/2s,     
2020 (Canada)  20,000  20,500 
MGM Resorts International company     
guaranty sr. unsec. notes 6 7/8s, 2016  15,000  16,313 
MGM Resorts International company     
guaranty sr. unsec. notes 6 3/4s, 2020  35,000  39,069 
MGM Resorts International company     
guaranty sr. unsec. notes 5 1/4s, 2020  35,000  36,400 
MGM Resorts International company     
guaranty sr. unsec. unsub. notes 8 5/8s, 2019  10,000  11,913 
MGM Resorts International company     
guaranty sr. unsec. unsub. notes 7 3/4s, 2022  10,000  11,725 
MGM Resorts International company     
guaranty sr. unsec. unsub. notes 6 5/8s, 2021  10,000  11,150 
MTR Gaming Group, Inc. company     
guaranty notes 11 1/2s, 2019  106,052  119,176 
Navistar International Corp. sr. notes 8 1/4s, 2021  24,000  25,140 
Neiman Marcus Group, Inc. 144A company     
guaranty sr. unsec. notes 8 3/4s, 2021 ‡‡  25,000  27,250 
Neiman Marcus Group, Inc. 144A company     
guaranty sr. unsec. notes 8s, 2021  10,000  10,775 
Neiman Marcus Group, LLC (The) company     
guaranty sr. notes 7 1/8s, 2028  45,000  46,575 
Nexstar Broadcasting, Inc. company     
guaranty sr. unsec. unsub. notes 6 7/8s, 2020  15,000  16,163 
Nielsen Co. Luxembourg S.a.r.l. (The) 144A     
company guaranty sr. unsec. notes 5 1/2s, 2021     
(Luxembourg)  15,000  15,563 
Nielsen Finance, LLC/Nielsen Finance Co. company     
guaranty sr. unsec. notes 4 1/2s, 2020  10,000  10,075 
Nortek, Inc. company guaranty sr. unsec.     
notes 10s, 2018  50,000  53,875 
Nortek, Inc. company guaranty sr. unsec.     
notes 8 1/2s, 2021  25,000  27,625 
O’Reilly Automotive, Inc. company     
guaranty sr. unsec. unsub. notes 3.85s, 2023  20,000  20,447 
Owens Corning company guaranty sr. unsec.     
notes 9s, 2019  9,000  11,317 
Penn National Gaming, Inc. 144A sr. unsec.     
notes 5 7/8s, 2021  23,000  21,735 
Penske Automotive Group, Inc. company     
guaranty sr. unsec. sub. notes 5 3/4s, 2022  14,000  14,735 
Petco Animal Supplies, Inc. 144A company     
guaranty sr. unsec. notes 9 1/4s, 2018  13,000  13,959 

 

16  Putnam VT Global Asset Allocation Fund 

 


CORPORATE BONDS AND NOTES (17.3%)* cont.  Principal amount  Value 
 
Consumer cyclicals cont.       
Petco Holdings, Inc. 144A sr. unsec.       
notes 8 1/2s, 2017 ‡‡    $10,000  $10,200 
PulteGroup, Inc. company guaranty sr. unsec.       
notes 7 5/8s, 2017    25,000  28,875 
PulteGroup, Inc. company guaranty sr. unsec.       
unsub. notes 7 7/8s, 2032    10,000  11,300 
Regal Entertainment Group sr. unsec.       
notes 5 3/4s, 2023    14,000  14,385 
Regal Entertainment Group sr. unsec.       
notes 5 3/4s, 2022    3,000  3,113 
Rivers Pittsburgh Borrower LP/Rivers Pittsburgh       
Finance Corp. 144A sr. notes 9 1/2s, 2019    25,000  27,125 
ROC Finance, LLC/ROC Finance 1 Corp. 144A       
notes 12 1/8s, 2018    24,000  26,040 
Sabre Holdings Corp. sr. unsec.       
unsub. notes 8.35s, 2016    35,000  38,719 
Sabre, Inc. 144A sr. notes 8 1/2s, 2019    11,000  12,183 
Sinclair Television Group, Inc. company       
guaranty sr. unsec. notes 6 3/8s, 2021    13,000  13,829 
Sinclair Television Group, Inc. company       
guaranty sr. unsec. notes 5 3/8s, 2021    7,000  7,044 
Sinclair Television Group, Inc. sr. unsec.       
notes 6 1/8s, 2022    7,000  7,315 
Sirius XM Radio, Inc. 144A company       
guaranty sr. unsec. notes 6s, 2024    13,000  13,520 
Sirius XM Radio, Inc. 144A sr. unsec.       
bonds 5 7/8s, 2020    13,000  13,748 
Sirius XM Radio, Inc. 144A sr. unsec.       
notes 5 1/4s, 2022    4,000  4,300 
Six Flags Entertainment Corp. 144A company       
guaranty sr. unsec. unsub. notes 5 1/4s, 2021    27,000  27,675 
Spectrum Brands, Inc. company guaranty sr. unsec.     
notes 6 3/8s, 2020    3,000  3,225 
Spectrum Brands, Inc. company guaranty sr. unsec.     
unsub. notes 6 3/4s, 2020    35,000  37,538 
Standard Pacific Corp. company       
guaranty sr. unsec. notes 6 1/4s, 2021    14,000  14,945 
SugarHouse HSP Gaming Prop. Mezz LP/SugarHouse     
HSP Gaming Finance Corp. 144A sr. notes 6 3/8s, 2021  7,000  6,860 
Taylor Morrison Communities, Inc./Monarch       
Communities, Inc. 144A company       
guaranty sr. unsec. notes 7 3/4s, 2020    7,000  7,630 
Taylor Morrison Communities, Inc./Monarch       
Communities, Inc. 144A company       
guaranty sr. unsec. notes 5 5/8s, 2024    7,000  6,948 
Taylor Morrison Communities, Inc./Monarch       
Communities, Inc. 144A company       
guaranty sr. unsec. notes 5 1/4s, 2021    7,000  7,088 
Taylor Morrison Communities, Inc./Monarch       
Communities, Inc. 144A sr. notes 7 3/4s, 2020    20,000  21,850 
Time Warner, Inc. company guaranty sr. unsec.       
notes 3.15s, 2015    10,000  10,276 
Townsquare Radio, LLC/Townsquare Radio, Inc. 144A     
company guaranty sr. unsec. notes 9s, 2019    10,000  11,075 
Toyota Motor Credit Corp. sr. unsec.       
unsub. notes Ser. MTN, 1 1/4s, 2017    130,000  129,910 
Travelport, LLC company guaranty sr. unsec.       
sub. notes 11 7/8s, 2016    10,000  10,200 
Travelport, LLC/Travelport Holdings, Inc. 144A       
company guaranty sr. unsec.       
unsub. notes 13 7/8s, 2016 ‡‡    16,092  16,575 

 

CORPORATE BONDS AND NOTES (17.3%)* cont.  Principal amount  Value 
 
Consumer cyclicals cont.       
TRW Automotive, Inc. 144A company       
guaranty sr. unsec. notes 4 1/2s, 2021    $4,000  $4,200 
TRW Automotive, Inc. 144A company       
guaranty sr. unsec. notes 4.45s, 2023    25,000  25,625 
Univision Communications, Inc. 144A company       
guaranty sr. unsec. notes 8 1/2s, 2021    20,000  22,175 
Wal-Mart Stores, Inc. sr. unsec.       
unsub. notes 6 1/2s, 2037    142,000  188,738 
Wal-Mart Stores, Inc. sr. unsec. unsub. notes 5s, 2040  10,000  11,147 
Walt Disney Co. (The) sr. unsec. notes 2 3/4s, 2021  30,000  30,279 
Walt Disney Co. (The) sr. unsec.       
unsub. notes 4 3/8s, 2041    10,000  10,265 
Walt Disney Co. (The) sr. unsec.       
unsub. notes Ser. MTN, 1.1s, 2017    130,000  129,387 
      4,390,727 
Consumer staples (1.1%)       
Altria Group, Inc. company guaranty sr. unsec.       
bonds 4s, 2024    24,000  24,619 
Altria Group, Inc. company guaranty sr. unsec.       
notes 9.7s, 2018    12,000  15,724 
Altria Group, Inc. company guaranty sr. unsec.       
notes 9 1/4s, 2019    2,000  2,658 
Altria Group, Inc. company guaranty sr. unsec.       
unsub. notes 2.85s, 2022    95,000  91,548 
Anheuser-Busch InBev Finance, Inc. company       
guaranty sr. unsec. notes 1 1/4s, 2018    130,000  129,062 
Anheuser-Busch InBev Worldwide, Inc. company       
guaranty sr. unsec. unsub. notes 8.2s, 2039    60,000  91,811 
Anheuser-Busch InBev Worldwide, Inc. company       
guaranty unsec. unsub. notes 5 3/8s, 2020    60,000  69,270 
Avis Budget Car Rental, LLC/Avis Budget       
Finance, Inc. company guaranty sr. unsec.       
unsub. notes 9 3/4s, 2020    7,000  7,936 
Avis Budget Car Rental, LLC/Avis Budget       
Finance, Inc. company guaranty sr. unsec.       
unsub. notes 5 1/2s, 2023    17,000  17,383 
B&G Foods, Inc. company guaranty sr. unsec.       
notes 4 5/8s, 2021    10,000  9,975 
Bunge, Ltd. Finance Corp. company       
guaranty sr. unsec. notes 8 1/2s, 2019    4,000  5,026 
Bunge, Ltd. Finance Corp. company       
guaranty sr. unsec. unsub. notes 4.1s, 2016    41,000  43,065 
Burger King Corp. company guaranty sr. unsec.       
notes 9 7/8s, 2018    14,000  15,015 
Cargill, Inc. 144A sr. unsec. notes 4.1s, 2042    65,000  62,779 
CEC Entertainment, Inc. 144A sr. unsec. notes 8s, 2022  15,000  15,525 
Coca-Cola Co. (The) sr. unsec. unsub. notes 5.35s, 2017  81,000  92,023 
Constellation Brands, Inc. company       
guaranty sr. unsec. notes 4 1/4s, 2023    4,000  3,995 
Constellation Brands, Inc. company       
guaranty sr. unsec. unsub. notes 7 1/4s, 2016    30,000  33,450 
Constellation Brands, Inc. company       
guaranty sr. unsec. unsub. notes 6s, 2022    10,000  11,225 
Corrections Corp. of America company       
guaranty sr. unsec. notes 4 5/8s, 2023 R    14,000  13,720 
Corrections Corp. of America company       
guaranty sr. unsec. notes 4 1/8s, 2020 R    4,000  3,970 
CVS Caremark Corp. sr. notes 6.036s, 2028    3,958  4,540 
CVS Caremark Corp. sr. unsec.       
unsub. notes 2 1/4s, 2018    130,000  131,591 
CVS Pass-Through Trust 144A sr. mtge.       
notes 4.704s, 2036    49,454  52,674 

 

Putnam VT Global Asset Allocation Fund  17 

 


CORPORATE BONDS AND NOTES (17.3%)* cont.  Principal amount  Value 
 
Consumer staples cont.     
Dave & Buster’s, Inc. company guaranty sr. unsec.     
unsub. notes 11s, 2018  $24,000  $25,380 
Dean Foods Co. company guaranty sr. unsec.     
unsub. notes 7s, 2016  20,000  21,850 
Delhaize Group SA company guaranty sr. unsec.     
notes 4 1/8s, 2019 (Belgium)  10,000  10,501 
Diageo Capital PLC company guaranty sr. unsec.     
unsub. notes 1 1/2s, 2017 (United Kingdom)  29,000  29,332 
Diageo Investment Corp. company     
guaranty sr. unsec. debs. 8s, 2022  40,000  52,378 
DineEquity, Inc. company guaranty sr. unsec.     
notes 9 1/2s, 2018  23,000  24,645 
Elizabeth Arden, Inc. sr. unsec.     
unsub. notes 7 3/8s, 2021  33,000  34,898 
ERAC USA Finance, LLC 144A company     
guaranty sr. unsec. notes 7s, 2037  50,000  65,518 
ERAC USA Finance, LLC 144A company     
guaranty sr. unsec. notes 3.85s, 2024  85,000  85,630 
Hertz Corp. (The) company guaranty sr. unsec.     
notes 7 1/2s, 2018  7,000  7,333 
Hertz Corp. (The) company guaranty sr. unsec.     
notes 6 1/4s, 2022  17,000  17,999 
Hertz Corp. (The) company guaranty sr. unsec.     
notes 5 7/8s, 2020  7,000  7,315 
HJ Heinz Co. company guaranty notes 4 1/4s, 2020  23,000  23,144 
JBS USA, LLC/JBS USA Finance, Inc. 144A     
sr. unsec. notes 8 1/4s, 2020 (Brazil)  7,000  7,595 
JBS USA, LLC/JBS USA Finance, Inc. 144A     
sr. unsec. notes 7 1/4s, 2021 (Brazil)  10,000  10,725 
JBS USA, LLC/JBS USA Finance, Inc. 144A     
sr. unsec. notes 7 1/4s, 2021 (Brazil)  5,000  5,375 
Kraft Foods Group, Inc. sr. unsec.     
unsub. notes 6 1/2s, 2040  70,000  88,646 
Landry’s Holdings II, Inc. 144A sr. unsec.     
notes 10 1/4s, 2018  5,000  5,300 
Landry’s, Inc. 144A sr. unsec. notes 9 3/8s, 2020  37,000  40,700 
McDonald’s Corp. sr. unsec. bonds 6.3s, 2037  51,000  65,999 
McDonald’s Corp. sr. unsec. notes 5.7s, 2039  59,000  71,816 
Molson Coors Brewing Co. company     
guaranty sr. unsec. unsub. notes 5s, 2042  50,000  52,314 
PepsiCo, Inc. sr. unsec. notes 7.9s, 2018  58,000  72,195 
PepsiCo, Inc. sr. unsec. unsub. notes 1 1/4s, 2017  129,000  129,426 
Prestige Brands, Inc. 144A sr. unsec.     
notes 5 3/8s, 2021  12,000  12,270 
Revlon Consumer Products Corp. company     
guaranty sr. unsec. notes 5 3/4s, 2021  23,000  23,633 
Rite Aid Corp. company guaranty sr. unsec.     
unsub. notes 9 1/4s, 2020  17,000  19,380 
Rite Aid Corp. company     
guaranty sr. unsub. notes 8s, 2020  7,000  7,700 
Smithfield Foods, Inc. sr. unsec.     
unsub. notes 6 5/8s, 2022  14,000  15,330 
Smithfield Foods, Inc. 144A sr. unsec.     
notes 5 7/8s, 2021  4,000  4,230 
Smithfield Foods, Inc. 144A sr. unsec.     
notes 5 1/4s, 2018  3,000  3,120 
Tyson Foods, Inc. company guaranty sr. unsec.     
unsub. notes 6.6s, 2016  35,000  38,338 
United Rentals North America, Inc. company     
guaranty sr. unsec. notes 7 5/8s, 2022  17,000  19,125 

 

CORPORATE BONDS AND NOTES (17.3%)* cont.  Principal amount  Value 
 
Consumer staples cont.       
United Rentals North America, Inc. company       
guaranty sr. unsec. notes 5 3/4s, 2024    $7,000  $7,271 
United Rentals North America, Inc. company       
guaranty sr. unsec. unsub. notes 6 1/8s, 2023    17,000  18,233 
      2,073,228 
Energy (2.1%)       
Access Midstream Partners LP/ACMP Finance Corp.     
company guaranty sr. unsec. notes 5 7/8s, 2021    7,000  7,490 
Access Midstream Partners LP/ACMP Finance Corp.     
company guaranty sr. unsec. unsub. notes 6 1/8s, 2022  7,000  7,735 
Access Midstream Partners LP/ACMP Finance Corp.     
company guaranty sr. unsec. unsub. notes 4 7/8s, 2023  22,000  23,210 
Alpha Natural Resources, Inc. company       
guaranty sr. unsec. notes 6 1/4s, 2021    30,000  21,300 
Anadarko Finance Co. company guaranty sr. unsec.     
unsub. notes Ser. B, 7 1/2s, 2031    85,000  115,721 
Anadarko Petroleum Corp. sr. notes 5.95s, 2016    11,000  12,184 
Anadarko Petroleum Corp. sr. unsec. notes 6.45s, 2036  10,000  12,752 
Anadarko Petroleum Corp. sr. unsec.       
unsub. notes 6.95s, 2019    30,000  36,715 
Antero Resources Corp. 144A company       
guaranty sr. unsec. notes 5 1/8s, 2022    13,000  13,358 
Antero Resources Finance Corp. company       
guaranty sr. unsec. notes 5 3/8s, 2021    13,000  13,488 
Apache Corp. sr. unsec. unsub. notes 5.1s, 2040    5,000  5,499 
Apache Corp. sr. unsec. unsub. notes 3 1/4s, 2022  44,000  45,258 
Athlon Holdings LP/Athlon Finance Corp. 144A       
company guaranty sr. unsec. notes 7 3/8s, 2021    20,000  21,800 
Athlon Holdings LP/Athlon Finance Corp. 144A       
company guaranty sr. unsec. notes 6s, 2022    13,000  13,455 
Atwood Oceanics, Inc. sr. unsec.       
unsub. notes 6 1/2s, 2020    5,000  5,331 
Baytex Energy Corp. 144A company       
guaranty sr. unsec. notes 5 5/8s, 2024 (Canada)    10,000  10,038 
Baytex Energy Corp. 144A company       
guaranty sr. unsec. notes 5 1/8s, 2021 (Canada)    10,000  10,063 
BP Capital Markets PLC company       
guaranty sr. unsec. unsub. notes 3.2s, 2016       
(United Kingdom)    145,000  151,473 
BP Capital Markets PLC company       
guaranty sr. unsec. unsub. notes 1.846s, 2017       
(United Kingdom)    130,000  132,770 
Calfrac Holdings LP 144A company       
guaranty sr. unsec. unsub. notes 7 1/2s, 2020    13,000  13,975 
Canadian Natural Resources, Ltd. sr. unsec.       
unsub. notes 5.7s, 2017 (Canada)    235,000  263,211 
Chaparral Energy, Inc. company       
guaranty sr. unsec. notes 9 7/8s, 2020    17,000  19,168 
Chaparral Energy, Inc. company       
guaranty sr. unsec. notes 8 1/4s, 2021    17,000  18,658 
Chesapeake Energy Corp. company       
guaranty sr. unsec. notes 5 3/4s, 2023    4,000  4,445 
Chesapeake Energy Corp. company       
guaranty sr. unsec. notes 4 7/8s, 2022    10,000  10,350 
Chesapeake Oilfield Operating, LLC/Chesapeake       
Oilfield Finance, Inc. company       
guaranty sr. unsec. unsub. notes 6 5/8s, 2019    20,000  21,500 
Chevron Corp. sr. unsec. unsub. notes 1.104s, 2017  128,000  127,412 
Cimarex Energy Co. company guaranty sr. unsec.       
notes 4 3/8s, 2024    10,000  10,188 
Concho Resources, Inc. company       
guaranty sr. unsec. notes 6 1/2s, 2022    23,000  25,300 

 

18  Putnam VT Global Asset Allocation Fund 

 


CORPORATE BONDS AND NOTES (17.3%)* cont.  Principal amount  Value 
 
Energy cont.       
Concho Resources, Inc. company       
guaranty sr. unsec. unsub. notes 5 1/2s, 2023    $17,000  $18,275 
Concho Resources, Inc. company       
guaranty sr. unsec. unsub. notes 5 1/2s, 2022    10,000  10,763 
Connacher Oil and Gas, Ltd. 144A notes 8 1/2s,       
2019 (Canada)    15,000  11,963 
ConocoPhillips Co. company guaranty sr. unsec.       
notes 1.05s, 2017    130,000  128,748 
CONSOL Energy, Inc. company guaranty sr. unsec.     
notes 8 1/4s, 2020    27,000  29,228 
CONSOL Energy, Inc. 144A company       
guaranty sr. unsec. notes 5 7/8s, 2022    10,000  10,475 
Denbury Resources, Inc. company       
guaranty sr. unsec. sub. notes 6 3/8s, 2021    4,000  4,300 
Denbury Resources, Inc. company       
guaranty sr. unsec. sub. notes 5 1/2s, 2022    20,000  20,475 
EXCO Resources, Inc. company guaranty sr. unsec.     
notes 7 1/2s, 2018    10,000  10,300 
Exterran Partners LP/EXLP Finance Corp. 144A       
company guaranty sr. unsec. notes 6s, 2022    17,000  17,255 
Forum Energy Technologies, Inc. 144A sr. unsec.       
notes 6 1/4s, 2021    14,000  14,840 
FTS International, Inc. 144A company       
guaranty sr. notes 6 1/4s, 2022    10,000  10,225 
Goodrich Petroleum Corp. company       
guaranty sr. unsec. unsub. notes 8 7/8s, 2019    24,000  25,560 
Gulfport Energy Corp. company guaranty sr. unsec.     
unsub. notes 7 3/4s, 2020    45,000  48,713 
Halcon Resources Corp. company       
guaranty sr. unsec. unsub. notes 9 3/4s, 2020    4,000  4,365 
Halcon Resources Corp. company       
guaranty sr. unsec. unsub. notes 8 7/8s, 2021    43,000  46,225 
Hercules Off shore, Inc. 144A company       
guaranty sr. unsec. notes 7 1/2s, 2021    5,000  4,963 
Hercules Off shore, Inc. 144A sr. unsec.       
notes 8 3/4s, 2021    15,000  15,825 
Hess Corp. sr. unsec. unsub. notes 7.3s, 2031    30,000  39,886 
Hiland Partners LP/Hiland Partners Finance Corp.     
144A company guaranty sr. notes 7 1/4s, 2020    14,000  15,260 
Hiland Partners LP/Hiland Partners Finance Corp.     
144A company guaranty sr. unsec. notes 5 1/2s, 2022  4,000  4,055 
Hilcorp Energy I LP/Hilcorp Finance Co. 144A       
sr. unsec. notes 5s, 2024    5,000  5,000 
Kerr-McGee Corp. company guaranty sr. unsec.       
unsub. notes 7 7/8s, 2031    10,000  14,123 
Key Energy Services, Inc. company guaranty unsec.     
unsub. notes 6 3/4s, 2021    24,000  24,960 
Kodiak Oil & Gas Corp. company       
guaranty sr. unsec. unsub. notes 8 1/8s, 2019    30,000  33,225 
Kodiak Oil & Gas Corp. company       
guaranty sr. unsec. unsub. notes 5 1/2s, 2022    3,000  3,113 
Lightstream Resources, Ltd. 144A sr. unsec.       
notes 8 5/8s, 2020 (Canada)    33,000  34,650 
Linn Energy, LLC/Linn Energy Finance Corp.       
company guaranty sr. unsec. notes 6 1/4s, 2019    37,000  38,758 
Lone Pine Resources Canada, Ltd. escrow company     
guaranty sr. unsec. unsub. notes 10 3/8s, 2017       
(Canada) F    20,000  1 
Marathon Petroleum Corp. sr. unsec.       
unsub. notes 6 1/2s, 2041    25,000  30,874 
MEG Energy Corp. 144A company guaranty sr. unsec.     
notes 6 1/2s, 2021 (Canada)    30,000  31,800 

 

CORPORATE BONDS AND NOTES (17.3%)* cont.  Principal amount  Value 
 
Energy cont.     
MEG Energy Corp. 144A company guaranty sr. unsec.     
notes 6 3/8s, 2023 (Canada)  $10,000  $10,625 
Milagro Oil & Gas, Inc. company     
guaranty notes 10 1/2s, 2016 (In default) †  45,000  35,100 
National JSC Naftogaz of Ukraine govt.     
guaranty unsec. notes 9 1/2s, 2014 (Ukraine)  100,000  97,438 
Newfield Exploration Co. sr. unsec. notes 5 3/4s, 2022  35,000  38,675 
Noble Holding International, Ltd. company     
guaranty sr. unsec. notes 6.05s, 2041  85,000  95,896 
Oasis Petroleum, Inc. company guaranty sr. unsec.     
notes 6 7/8s, 2023  10,000  10,950 
Oasis Petroleum, Inc. 144A company     
guaranty sr. unsec. unsub. notes 6 7/8s, 2022  30,000  32,700 
Offshore Group Investment, Ltd. company     
guaranty sr. notes 7 1/2s, 2019 (Cayman Islands)  20,000  21,150 
Offshore Group Investment, Ltd. company     
guaranty sr. notes 7 1/8s, 2023 (Cayman Islands)  30,000  30,450 
Peabody Energy Corp. company guaranty sr. unsec.     
notes 7 3/8s, 2016  15,000  16,481 
Peabody Energy Corp. company guaranty sr. unsec.     
unsub. notes 6s, 2018  14,000  14,595 
Petroleos de Venezuela SA sr. unsec. notes 4.9s,     
2014 (Venezuela)  250,000  248,749 
Petroleos de Venezuela SA 144A company     
guaranty sr. unsec. notes 6s, 2026 (Venezuela)  30,000  19,350 
Petroleos Mexicanos 144A company guaranty     
sr. unsec. unsub. notes 6 3/8s, 2045 (Mexico)  80,000  92,684 
Petroleos Mexicanos 144A company guaranty     
sr. unsec. unsub. notes 4 7/8s, 2024 (Mexico)  80,000  84,845 
Phillips 66 company guaranty sr. unsec.     
unsub. notes 2.95s, 2017  130,000  136,244 
Plains Exploration & Production Co. company     
guaranty sr. unsec. notes 6 3/4s, 2022  128,000  145,440 
Range Resources Corp. company guaranty sr. sub.     
notes 6 3/4s, 2020  10,000  10,750 
Range Resources Corp. company guaranty sr. unsec.     
sub. notes 5s, 2022  7,000  7,420 
Rose Rock Midstream LP/Rose Rock Finance Corp.     
144A company guaranty sr. unsec. notes 5 5/8s, 2022  5,000  5,063 
Rosetta Resources, Inc. company     
guaranty sr. unsec. unsub. notes 5 7/8s, 2024  17,000  17,680 
Rosetta Resources, Inc. company     
guaranty sr. unsec. unsub. notes 5 5/8s, 2021  10,000  10,288 
Sabine Pass LNG LP company     
guaranty sr. notes 6 1/2s, 2020  7,000  7,578 
Samson Investment Co. 144A sr. unsec.     
notes 10 3/4s, 2020  43,000  45,311 
Sanchez Energy Corp. 144A company     
guaranty sr. unsec. notes 6 1/8s, 2023  5,000  5,163 
Seven Generations Energy, Ltd. 144A sr. unsec.     
notes 8 1/4s, 2020 (Canada)  14,000  15,364 
Seventy Seven Energy, Inc. 144A sr. unsec.     
notes 6 1/2s, 2022  5,000  5,125 
Shelf Drilling Holdings, Ltd. 144A     
sr. notes 8 5/8s, 2018  17,000  18,190 
Shell International Finance BV company     
guaranty sr. unsec. notes 3.1s, 2015     
(Netherlands)  95,000  97,588 
Shell International Finance BV company     
guaranty sr. unsec. unsub. notes 5.2s, 2017     
(Netherlands)  140,000  155,568 
SM Energy Co. sr. unsec. notes 6 5/8s, 2019  7,000  7,420 

 

Putnam VT Global Asset Allocation Fund  19 

 


CORPORATE BONDS AND NOTES (17.3%)* cont.  Principal amount  Value 
 
Energy cont.     
SM Energy Co. sr. unsec. notes 6 1/2s, 2021  $7,000  $7,578 
SM Energy Co. sr. unsec. unsub. notes 6 1/2s, 2023  3,000  3,263 
Spectra Energy Capital, LLC sr. notes 8s, 2019  45,000  56,776 
Statoil ASA company guaranty sr. unsec.     
notes 5.1s, 2040 (Norway)  40,000  45,539 
Tervita Corp. 144A sr. unsec. notes 10 7/8s, 2018     
(Canada)  4,000  4,073 
Total Capital International SA company guaranty     
sr. unsec. unsub. notes 1.55s, 2017 (France)  128,000  129,833 
Unit Corp. company guaranty sr. sub. notes     
6 5/8s, 2021  14,000  14,945 
Weatherford International, LLC company     
guaranty sr. unsec. unsub. notes 6.8s, 2037  15,000  18,379 
Weatherford International, LLC company     
guaranty sr. unsec. unsub. notes 6.35s, 2017  25,000  28,407 
Weatherford International, Ltd. of Bermuda     
company guaranty sr. unsec. notes 9 7/8s, 2039     
(Bermuda)  70,000  108,831 
Whiting Petroleum Corp. company     
guaranty sr. unsec. unsub. notes 5 3/4s, 2021  34,000  37,315 
Williams Companies, Inc. (The) notes 7 3/4s, 2031  1,000  1,205 
Williams Companies, Inc. (The) sr. unsec.     
notes 7 7/8s, 2021  3,000  3,725 
Williams Companies, Inc. (The) sr. unsec.     
notes 4.55s, 2024  45,000  45,446 
Williams Partners LP sr. unsec. notes 5.4s, 2044  15,000  16,044 
Williams Partners LP sr. unsec. notes 4.3s, 2024  15,000  15,557 
WPX Energy, Inc. sr. unsec. unsub. notes 6s, 2022  7,000  7,473 
WPX Energy, Inc. sr. unsec. unsub. notes 5 1/4s, 2017  27,000  28,755 
    3,995,074 
Financials (5.1%)     
Abbey National Treasury Services PLC of     
Stamford, CT company guaranty sr. unsec. unsub.     
notes 1 3/8s, 2017  140,000  140,594 
Aflac, Inc. sr. unsec. notes 8 1/2s, 2019  90,000  116,044 
Aflac, Inc. sr. unsec. notes 6.9s, 2039  75,000  100,099 
Ally Financial, Inc. company guaranty sr. notes     
6 1/4s, 2017  17,000  18,998 
Ally Financial, Inc. company guaranty sr. unsec.     
unsub. notes 8.3s, 2015  13,000  13,544 
Ally Financial, Inc. company guaranty sr. unsec.     
unsub. notes 8s, 2031  4,000  5,110 
Ally Financial, Inc. company guaranty sr. unsec.     
unsub. notes 8s, 2020  13,000  15,795 
Ally Financial, Inc. company guaranty sr. unsec.     
unsub. notes 7 1/2s, 2020  10,000  12,050 
Ally Financial, Inc. unsec. sub. notes 8s, 2018  14,000  16,625 
American Express Co. sr. unsec. notes 7s, 2018  83,000  98,700 
American Express Co. sr. unsec. notes 6.15s, 2017  49,000  56,069 
American International Group, Inc. jr. sub. FRB     
bonds 8.175s, 2058  76,000  104,690 
American International Group, Inc. sr. unsec.     
Ser. MTN, 5.85s, 2018  149,000  170,161 
American International Group, Inc. sr. unsec.     
unsub. notes 3.8s, 2017  130,000  138,919 
ARC Properties Operating Partnership LP/Clark     
Acquisition, LLC 144A company     
guaranty sr. unsec. unsub. notes 4.6s, 2024 R  50,000  51,276 
Associates Corp. of North America sr. unsec.     
notes 6.95s, 2018  135,000  161,223 

 

CORPORATE BONDS AND NOTES (17.3%)* cont.  Principal amount  Value 
 
Financials cont.       
AXA SA 144A jr. unsec. sub. FRN notes 6.463s,       
perpetual maturity (France)    $85,000  $91,056 
Bank of America Corp. sr. unsec. unsub. notes 2s, 2018  128,000  128,826 
Bank of Montreal sr. unsec. unsub. notes Ser. MTN,     
2 1/2s, 2017 (Canada)    128,000  133,156 
Bank of New York Mellon Corp. (The) sr. unsec.       
unsub. notes 1.969s, 2017    105,000  107,331 
Bank of Nova Scotia sr. unsec. unsub. notes 1 3/8s,     
2017 (Canada)    130,000  129,709 
Barclays Bank PLC 144A sub. notes 10.179s, 2021     
(United Kingdom)    95,000  131,405 
BBVA International Preferred SAU bank guaranty       
jr. unsec. sub. FRB bonds 5.919s, perpetual maturity     
(Spain)    95,000  99,038 
Bear Stearns Cos., LLC (The) sr. unsec.       
unsub. notes 7 1/4s, 2018    22,000  26,182 
Bear Stearns Cos., LLC (The) sr. unsec.       
unsub. notes 5.7s, 2014    40,000  40,769 
Berkshire Hathaway Finance Corp. company       
guaranty sr. unsec. unsub. notes 4.3s, 2043    29,000  28,857 
BNP Paribas SA bank guaranty sr. unsec.       
unsub. notes Ser. MTN, 1 3/8s, 2017 (France)    140,000  140,150 
BNP Paribas SA sr. unsec. notes Ser. MTN, 2 3/8s,     
2017 (France)    40,000  40,919 
BNP Paribas SA 144A jr. unsec. sub. FRN       
notes 5.186s, perpetual maturity (France)    75,000  76,406 
Camden Property Trust sr. unsec. notes 4 7/8s,       
2023 R    65,000  71,369 
CB Richard Ellis Services, Inc. company       
guaranty sr. unsec. notes 6 5/8s, 2020    7,000  7,429 
CBL & Associates LP company guaranty sr. unsec.     
unsub. notes 5 1/4s, 2023 R    95,000  101,286 
CBRE Services, Inc. company guaranty sr. unsec.       
unsub. notes 5s, 2023    13,000  13,130 
CIT Group, Inc. sr. unsec. notes 5s, 2023    10,000  10,250 
CIT Group, Inc. sr. unsec. notes 5s, 2022    17,000  17,595 
CIT Group, Inc. sr. unsec. unsub. notes 5 3/8s, 2020  14,000  15,028 
CIT Group, Inc. sr. unsec. unsub. notes 5 1/4s, 2018  13,000  13,959 
CIT Group, Inc. sr. unsec. unsub. notes 3 7/8s, 2019  7,000  7,109 
CIT Group, Inc. 144A company guaranty notes       
6 5/8s, 2018    24,000  26,940 
CIT Group, Inc. 144A company guaranty notes       
5 1/2s, 2019    17,000  18,424 
Citigroup, Inc. sr. unsec. notes 8 1/2s, 2019    3,000  3,835 
Citigroup, Inc. sr. unsec. unsub. notes 4.45s, 2017  130,000  140,011 
Citigroup, Inc. sub. notes 5s, 2014    71,000  71,629 
Community Choice Financial, Inc. company       
guaranty sr. notes 10 3/4s, 2019    10,000  8,550 
Cooperatieve Centrale Raiffeisen-Boerenleenbank     
BA of Netherlands (Rabobank Nederland) bank       
guaranty sr. unsec. notes 3 3/8s, 2017       
(Netherlands)    116,000  122,839 
Credit Acceptance Corp. 144A company       
guaranty sr. unsec. notes 6 1/8s, 2021    13,000  13,585 
DDR Corp. sr. unsec. unsub. notes 7 7/8s, 2020 R    50,000  63,268 
Deutsche Bank AG/London sr. unsec. notes 6s, 2017     
(United Kingdom)    128,000  145,493 
DFC Finance Corp. 144A company       
guaranty sr. notes 10 1/2s, 2020    15,000  15,319 
Duke Realty LP sr. unsec. notes 6 1/2s, 2018 R    57,000  65,169 

 

20  Putnam VT Global Asset Allocation Fund 

 


CORPORATE BONDS AND NOTES (17.3%)* cont.  Principal amount  Value 
 
Financials cont.       
E*Trade Financial Corp. sr. unsec. unsub. notes       
6 3/8s, 2019    $33,000  $35,723 
EPR Properties unsec. notes 5 1/4s, 2023 R    65,000  67,868 
Fifth Third Bancorp jr. unsec. sub. FRB       
bonds 5.1s, perpetual maturity    20,000  19,215 
Five Corners Funding Trust 144A unsec.       
bonds 4.419s, 2023    135,000  142,444 
GE Capital Trust I unsec. sub. FRB bonds 6 3/8s, 2067  135,000  150,188 
General Electric Capital Corp. sr. unsec.       
notes 6 3/4s, 2032    205,000  270,428 
General Electric Capital Corp. sr. unsec.       
notes Ser. MTN, 5.4s, 2017    129,000  143,209 
Genworth Holdings, Inc. company guaranty jr.       
unsec. sub. FRB bonds 6.15s, 2066    90,000  85,613 
Genworth Holdings, Inc. sr. unsec.       
unsub. notes 7.7s, 2020    95,000  117,077 
Goldman Sachs Group, Inc. (The) sr. notes 7 1/2s, 2019  170,000  207,294 
Goldman Sachs Group, Inc. (The) sr. unsec.       
unsub. notes Ser. GLOB, 2 3/8s, 2018    130,000  132,020 
Goldman Sachs Group, Inc. (The)       
sub. notes 6 3/4s, 2037    24,000  28,727 
Hartford Financial Services Group, Inc. (The)       
sr. unsec. unsub. notes 5 1/8s, 2022    35,000  39,799 
HBOS PLC 144A unsec. sub. bonds 6s, 2033       
(United Kingdom)    40,000  44,512 
HCP, Inc. sr. unsec. unsub. notes 3.15s, 2022 R    70,000  69,083 
Highwood Realty LP sr. unsec. bonds 5.85s, 2017 R  60,000  66,687 
Hockey Merger Sub 2, Inc. 144A sr. unsec.       
notes 7 7/8s, 2021    20,000  21,425 
HSBC Finance Corp. sr. unsec. sub. notes 6.676s, 2021  146,000  174,602 
HSBC USA Capital Trust I 144A jr. bank       
guaranty unsec. notes 7.808s, 2026    100,000  101,277 
Icahn Enterprises LP/Icahn Enterprises       
Finance Corp. company guaranty sr. unsec.       
notes 6s, 2020    30,000  32,138 
Icahn Enterprises LP/Icahn Enterprises       
Finance Corp. company guaranty sr. unsec.       
notes 5 7/8s, 2022    17,000  17,808 
ING Bank NV 144A unsec. sub. notes 5.8s, 2023       
(Netherlands)    235,000  265,112 
International Lease Finance Corp. sr. unsec.       
notes 6 1/4s, 2019    4,000  4,470 
International Lease Finance Corp. sr. unsec.       
unsub. notes 5 7/8s, 2022    14,000  15,260 
International Lease Finance Corp. sr. unsec.       
unsub. notes 4 7/8s, 2015    58,000  59,305 
iStar Financial, Inc. sr. unsec. notes 7 1/8s, 2018 R  13,000  14,479 
JPMorgan Chase & Co. jr. unsec. sub. FRN       
notes 7.9s, perpetual maturity    90,000  100,575 
JPMorgan Chase & Co. sr. unsec. unsub. notes 2s, 2017  130,000  132,204 
Liberty Mutual Group, Inc. 144A company       
guaranty jr. unsec. sub. bonds 7.8s, 2037    55,000  64,900 
Liberty Mutual Group, Inc. 144A notes 6 1/2s, 2035  15,000  18,374 
Lloyds Banking Group PLC jr. unsec. sub. FRB       
bonds 7 1/2s, perpetual maturity       
(United Kingdom)    212,000  225,568 
Lloyds Banking Group PLC 144A jr. unsec. sub. FRN     
notes 6.657s, perpetual maturity       
(United Kingdom)    25,000  28,000 

 

CORPORATE BONDS AND NOTES (17.3%)* cont.  Principal amount  Value 
 
Financials cont.       
Macquarie Bank, Ltd. 144A sr. unsec. notes 3.45s,     
2015 (Australia)    $35,000  $36,009 
Merrill Lynch & Co., Inc. unsec. sub. notes 6.11s, 2037  270,000  311,482 
MetLife, Inc. sr. unsec. unsub. notes 6 3/4s, 2016    130,000  144,464 
Mid-America Apartments LP sr. unsec. notes 4.3s,     
2023 R    75,000  78,229 
Morgan Stanley sr. unsec. notes 4 3/4s, 2017    98,000  106,696 
MPT Operating Partnership LP/MPT Finance Corp.     
company guaranty sr. unsec. notes 6 7/8s, 2021 R  10,000  10,900 
MPT Operating Partnership LP/MPT Finance Corp.     
company guaranty sr. unsec. unsub. notes 6 3/8s,     
2022 R    45,000  48,488 
Nationstar Mortgage, LLC/Nationstar Capital Corp.     
company guaranty sr. unsec. notes 7 7/8s, 2020    30,000  31,538 
Nationstar Mortgage, LLC/Nationstar Capital Corp.     
company guaranty sr. unsec. unsub. notes 6 1/2s, 2021  15,000  15,038 
Nationwide Financial Services, Inc. notes 5 5/8s, 2015  25,000  25,631 
Nationwide Mutual Insurance Co. 144A       
notes 8 1/4s, 2031    45,000  59,786 
Neuberger Berman Group, LLC/Neuberger Berman     
Finance Corp. 144A sr. unsec. notes 5 7/8s, 2022    30,000  32,025 
Neuberger Berman Group, LLC/Neuberger Berman     
Finance Corp. 144A sr. unsec. notes 5 5/8s, 2020    15,000  15,863 
Nuveen Investments, Inc. 144A sr. unsec.       
notes 9 1/8s, 2017    25,000  27,094 
Ocwen Financial Corp. 144A company       
guaranty sr. unsec. notes 6 5/8s, 2019    10,000  10,325 
OneAmerica Financial Partners, Inc. 144A       
bonds 7s, 2033    90,000  94,087 
PHH Corp. sr. unsec. unsub. notes 7 3/8s, 2019    13,000  14,853 
PHH Corp. sr. unsec. unsub. notes 6 3/8s, 2021    14,000  14,805 
Primerica, Inc. sr. unsec. unsub. notes 4 3/4s, 2022  63,000  68,583 
Progressive Corp. (The) jr. unsec. sub. FRN       
notes 6.7s, 2037    65,000  72,313 
Provident Funding Associates LP/PFG Finance Corp.     
144A company guaranty sr. unsec. notes 6 3/4s, 2021  20,000  20,250 
Provident Funding Associates LP/PFG Finance Corp.     
144A sr. notes 10 1/8s, 2019    13,000  14,105 
Prudential Financial, Inc. jr. unsec. sub. FRN       
notes 8 7/8s, 2038    30,000  36,638 
Prudential Financial, Inc. jr. unsec. sub. FRN       
notes 5 5/8s, 2043    71,000  76,236 
Prudential Financial, Inc. jr. unsec. sub. FRN       
notes 5.2s, 2044    25,000  25,344 
Realty Income Corp. sr. unsec. notes 4.65s, 2023 R  25,000  26,844 
Royal Bank of Canada sr. unsec.       
unsub. notes Ser. GMTN, 2.2s, 2018 (Canada)    130,000  132,752 
Royal Bank of Scotland Group PLC unsec.       
sub. notes 6s, 2023 (United Kingdom)    20,000  21,624 
Royal Bank of Scotland Group PLC unsec.       
sub. notes 5 1/8s, 2024 (United Kingdom)    125,000  126,925 
Royal Bank of Scotland Group PLC unsec.       
sub. notes 4.7s, 2018 (United Kingdom)    115,000  122,011 
Santander Holdings USA, Inc. sr. unsec.       
unsub. notes 4 5/8s, 2016    21,000  22,319 
Santander Issuances SAU 144A bank guaranty unsec.     
sub. notes 5.911s, 2016 (Spain)    100,000  105,157 
Simon Property Group LP sr. unsec. unsub. notes       
5 1/4s, 2016 R    22,000  24,030 

 

Putnam VT Global Asset Allocation Fund  21 

 


CORPORATE BONDS AND NOTES (17.3%)* cont.  Principal amount  Value 
 
Financials cont.       
Simon Property Group LP sr. unsec. unsub. notes       
3 3/8s, 2022 R    $10,000  $10,299 
Simon Property Group LP 144A sr. unsec. unsub.       
notes 1 1/2s, 2018    118,000  117,184 
SLM Corp. sr. unsec. unsub. notes Ser. MTN,       
8.45s, 2018    13,000  15,373 
Springleaf Finance Corp. sr. unsec.       
unsub. notes 7 3/4s, 2021    10,000  11,250 
Springleaf Finance Corp. sr. unsec.       
unsub. notes 6s, 2020    7,000  7,245 
State Street Capital Trust IV company       
guaranty jr. unsec. sub. FRB bonds 1.231s, 2037    75,000  63,281 
Swiss Re Treasury US Corp. 144A company       
guaranty sr. unsec. notes 4 1/4s, 2042    90,000  86,692 
TMX Finance, LLC/TitleMax Finance Corp. 144A       
sr. notes 8 1/2s, 2018    5,000  5,300 
Travelers Property Casualty Corp. sr. unsec.       
unsub. bonds 7 3/4s, 2026    40,000  54,819 
UBS AG of Stamford, CT sr. unsec.       
unsub. notes Ser. BKNT, 5 7/8s, 2017    100,000  114,216 
Vnesheconombank Via VEB Finance PLC 144A       
sr. unsec. unsub. notes 6.8s, 2025 (Russia)    300,000  319,860 
VTB Bank OJSC Via VTB Capital SA 144A sr. unsec.     
notes 6 7/8s, 2018 (Russia)    392,000  422,419 
Wachovia Corp. sr. unsec. notes 5 3/4s, 2017    20,000  22,616 
Walter Investment Management Corp. 144A company     
guaranty sr. unsec. notes 7 7/8s, 2021    13,000  13,585 
Wells Fargo & Co. sr. unsec. notes 2.1s, 2017    128,000  131,281 
Westpac Banking Corp. sr. unsec. bonds 3s, 2015       
(Australia)    15,000  15,531 
Westpac Banking Corp. sr. unsec. notes 4 7/8s,       
2019 (Australia)    80,000  89,824 
Westpac Banking Corp. sr. unsec.       
unsub. notes 2 1/4s, 2018 (Australia)    24,000  24,451 
Weyerhaeuser Real Estate Co. 144A sr. unsec.       
unsub. notes 5 7/8s, 2024    5,000  5,144 
WP Carey, Inc. sr. unsec. unsub. notes 4.6s, 2024    30,000  31,202 
ZFS Finance USA Trust V 144A FRB bonds 6 1/2s, 2037  55,000  58,781 
      9,834,099 
Health care (1.2%)       
AbbVie, Inc. sr. unsec. unsub. notes 2.9s, 2022    80,000  77,363 
AbbVie, Inc. sr. unsec. unsub. notes 1 3/4s, 2017    116,000  116,633 
Acadia Healthcare Co., Inc. company       
guaranty sr. unsec. notes 6 1/8s, 2021    35,000  36,750 
Acadia Healthcare Co., Inc. 144A company       
guaranty sr. unsec. notes 5 1/8s, 2022    15,000  15,038 
Aetna, Inc. sr. unsec. unsub. notes 6 3/4s, 2037    38,000  50,506 
Amgen, Inc. sr. unsec. notes 3.45s, 2020    125,000  130,900 
Amgen, Inc. sr. unsec. unsub. notes 2 1/8s, 2017    130,000  133,242 
AstraZeneca PLC sr. unsec. unsub. notes 6.45s,       
2037 (United Kingdom)    71,000  91,910 
AstraZeneca PLC sr. unsub. notes 5.9s, 2017       
(United Kingdom)    130,000  148,630 
Aviv Healthcare Properties LP/Aviv Healthcare       
Capital Corp. company guaranty sr. unsec.       
notes 7 3/4s, 2019    17,000  18,105 
Aviv Healthcare Properties LP/Aviv Healthcare       
Capital Corp. company guaranty sr. unsec.       
notes 6s, 2021    14,000  14,840 

 

CORPORATE BONDS AND NOTES (17.3%)* cont.  Principal amount  Value 
 
Health care cont.     
Capsugel SA 144A sr. unsec. notes 7s, 2019     
(Luxembourg) ‡‡  $14,000  $14,420 
Catamaran Corp. company guaranty sr. unsec.     
bonds 4 3/4s, 2021  14,000  14,140 
Centene Corp. sr. unsec. unsub. notes 4 3/4s, 2022  15,000  15,225 
CHS/Community Health Systems, Inc. company     
guaranty sr. notes 5 1/8s, 2018  3,000  3,146 
CHS/Community Health Systems, Inc. company     
guaranty sr. unsec. unsub. notes 8s, 2019  7,000  7,665 
CHS/Community Health Systems, Inc. 144A company     
guaranty sr. notes 5 1/8s, 2021  3,000  3,075 
CHS/Community Health Systems, Inc. 144A company     
guaranty sr. unsec. notes 6 7/8s, 2022  3,000  3,180 
CIGNA Corp. sr. unsec. unsub. notes 4 1/2s, 2021  80,000  87,914 
Crimson Merger Sub, Inc. 144A sr. unsec.     
notes 6 5/8s, 2022  23,000  22,828 
DaVita HealthCare Partners, Inc. company     
guaranty sr. unsec. notes 5 1/8s, 2024  20,000  20,125 
Endo Finance, LLC 144A company     
guaranty sr. unsec. notes 5 3/4s, 2022  17,000  17,425 
Endo Finance, LLC & Endo Finco, Inc. 144A company     
guaranty sr. unsec. unsub. notes 5 3/8s, 2023  10,000  10,025 
Envision Healthcare Corp. 144A company     
guaranty sr. unsec. notes 5 1/8s, 2022  5,000  5,044 
Fresenius Medical Care US Finance II, Inc. 144A     
company guaranty sr. unsec. notes 5 5/8s, 2019  17,000  18,530 
HCA, Inc. company guaranty sr. notes 3 3/4s, 2019  10,000  10,113 
HCA, Inc. sr. notes 6 1/2s, 2020  67,000  75,208 
HCA, Inc. sr. unsec. notes 7 1/2s, 2022  4,000  4,620 
Health Net, Inc. sr. unsec. bonds 6 3/8s, 2017  33,000  36,259 
IASIS Healthcare, LLC/IASIS Capital Corp. company     
guaranty sr. unsec. notes 8 3/8s, 2019  17,000  18,126 
IMS Health, Inc. 144A sr. unsec. notes 6s, 2020  10,000  10,500 
Jaguar Holding Co. I 144A sr. unsec.     
notes 9 3/8s, 2017 ‡‡  15,000  15,525 
Jaguar Holding Co. II/Jaguar Merger Sub, Inc. 144A     
sr. unsec. notes 9 1/2s, 2019  30,000  32,775 
JLL/Delta Dutch Newco BV 144A sr. unsec.     
notes 7 1/2s, 2022 (Netherlands)  23,000  23,805 
Johnson & Johnson sr. unsec. notes 5.15s, 2018  81,000  92,401 
Kinetic Concepts, Inc./KCI USA, Inc. company     
guaranty notes 10 1/2s, 2018  40,000  45,350 
Merck & Co., Inc. sr. unsec. unsub. notes 1.3s, 2018  112,000  110,888 
Mylan, Inc./PA company guaranty sr. unsec.     
notes 2.6s, 2018  10,000  10,165 
Omega Healthcare Investors, Inc. company     
guaranty sr. unsec. notes 6 3/4s, 2022 R  25,000  27,018 
Omega Healthcare Investors, Inc. 144A sr. unsec.     
notes 4.95s, 2024 R  45,000  45,961 
Par Pharmaceutical Cos., Inc. company     
guaranty sr. unsec. unsub. notes 7 3/8s, 2020  23,000  24,725 
Quest Diagnostics, Inc. company     
guaranty sr. unsec. notes 6.95s, 2037  15,000  18,200 
Salix Pharmaceuticals, Ltd. 144A company     
guaranty sr. unsec. notes 6s, 2021  5,000  5,363 
Service Corp. International sr. unsec.     
unsub. notes 5 3/8s, 2022  14,000  14,490 
Service Corp. International 144A sr. unsec.     
unsub. notes 5 3/8s, 2024  23,000  23,518 

 

22  Putnam VT Global Asset Allocation Fund 

 


CORPORATE BONDS AND NOTES (17.3%)* cont.  Principal amount  Value 
 
Health care cont.       
Service Corp. International/US sr. unsec.       
unsub. notes 6 3/4s, 2016    $52,000  $56,030 
Teleflex, Inc. company guaranty sr. unsec.       
sub. notes 6 7/8s, 2019    17,000  17,978 
Teleflex, Inc. 144A company guaranty sr. unsec.       
notes 5 1/4s, 2024    10,000  10,100 
Tenet Healthcare Corp. company guaranty       
sr. bonds 4 1/2s, 2021    7,000  7,044 
Tenet Healthcare Corp. company guaranty       
sr. bonds 4 3/8s, 2021    14,000  13,913 
Tenet Healthcare Corp. company guaranty       
sr. notes 6 1/4s, 2018    24,000  26,730 
Tenet Healthcare Corp. company guaranty       
sr. notes 6s, 2020    20,000  21,700 
Tenet Healthcare Corp. company guaranty       
sr. notes 4 3/4s, 2020    3,000  3,068 
Teva Pharmaceutical Finance II BV/Teva       
Pharmaceutical Finance III, LLC company       
guaranty sr. unsec. unsub. notes 3s, 2015       
(Curacao)    50,000  51,221 
United Surgical Partners International, Inc.       
company guaranty sr. unsec. unsub. notes 9s, 2020  14,000  15,453 
UnitedHealth Group, Inc. sr. unsec. notes 6s, 2018  58,000  66,917 
UnitedHealth Group, Inc. sr. unsec.       
unsub. notes 4.7s, 2021    105,000  117,333 
UnitedHealth Group, Inc. sr. unsec.       
unsub. notes 3.95s, 2042    90,000  84,035 
UnitedHealth Group, Inc. sr. unsec.       
unsub. notes 2 3/4s, 2023    90,000  87,327 
Valeant Pharmaceuticals International 144A       
company guaranty sr. notes 7s, 2020    3,000  3,188 
Valeant Pharmaceuticals International 144A       
company guaranty sr. unsec. notes 6 7/8s, 2018    10,000  10,463 
Valeant Pharmaceuticals International 144A       
company guaranty sr. unsec. notes 6 3/8s, 2020    3,000  3,188 
Valeant Pharmaceuticals International 144A       
sr. notes 6 3/4s, 2017    3,000  3,128 
Valeant Pharmaceuticals International 144A       
sr. unsec. notes 6 3/4s, 2018    13,000  14,008 
WellCare Health Plans, Inc. sr. unsec.       
notes 5 3/4s, 2020    17,000  18,105 
      2,352,598 
Technology (0.8%)       
ACI Worldwide, Inc. 144A company       
guaranty sr. unsec. unsub. notes 6 3/8s, 2020    25,000  26,313 
Apple, Inc. sr. unsec. unsub. notes 3.85s, 2043    27,000  24,919 
Apple, Inc. sr. unsec. unsub. notes 3.45s, 2024    40,000  40,312 
Apple, Inc. sr. unsec. unsub. notes 2.1s, 2019    5,000  5,029 
Avaya, Inc. 144A company guaranty notes 10 1/2s, 2021  13,000  11,993 
Avaya, Inc. 144A company guaranty sr. notes 7s, 2019  34,000  34,000 
Cisco Systems, Inc. company guaranty sr. unsec.       
unsub. notes 3.15s, 2017    135,000  142,513 
Cisco Systems, Inc. sr. unsec. unsub. notes 1.1s, 2017  59,000  59,183 
eBay, Inc. sr. unsec. unsub. notes 1.35s, 2017    130,000  130,612 
Epicor Software Corp. company guaranty sr. unsec.     
notes 8 5/8s, 2019    10,000  10,763 
Fidelity National Information Services, Inc.       
company guaranty sr. unsec. unsub. notes 5s, 2022  17,000  17,872 

 

CORPORATE BONDS AND NOTES (17.3%)* cont.  Principal amount  Value 
 
Technology cont.       
First Data Corp. company guaranty sr. unsec.       
notes 12 5/8s, 2021    $19,000  $23,394 
First Data Corp. company guaranty sr. unsec.       
notes 11 1/4s, 2021    13,000  15,178 
First Data Corp. company guaranty sr. unsec.       
sub. notes 11 3/4s, 2021    27,000  32,029 
First Data Corp. 144A company       
guaranty notes 8 1/4s, 2021    44,000  48,180 
First Data Corp. 144A company       
guaranty sr. notes 7 3/8s, 2019    7,000  7,516 
First Data Holdings, Inc. 144A sr. unsec.       
notes 14 1/2s, 2019 ‡‡    10,958  12,163 
Freescale Semiconductor, Inc. company       
guaranty sr. unsec. notes 10 3/4s, 2020    7,000  7,910 
Freescale Semiconductor, Inc. 144A company       
guaranty sr. notes 5s, 2021    14,000  14,350 
Freescale Semiconductor, Inc. 144A sr. notes 6s, 2022  20,000  21,350 
Hewlett-Packard Co. sr. unsec. notes 5 1/2s, 2018  20,000  22,624 
Hewlett-Packard Co. sr. unsec. unsub. notes 2.6s, 2017  111,000  114,724 
Honeywell International, Inc. sr. unsec.       
unsub. notes 5 3/8s, 2041    55,000  65,604 
Honeywell International, Inc. sr. unsec.       
unsub. notes 4 1/4s, 2021    40,000  44,280 
IBM Corp. sr. unsec. unsub. notes 1 7/8s, 2022    140,000  129,481 
Infor US, Inc. company guaranty sr. unsec.       
unsub. notes 11 1/2s, 2018    10,000  11,363 
Intel Corp. sr. unsec. unsub. notes 1.35s, 2017    130,000  130,037 
Iron Mountain, Inc. company       
guaranty sr. sub. notes 7 3/4s, 2019    7,000  7,656 
Iron Mountain, Inc. company guaranty sr. unsec.       
unsub. notes 6s, 2023    14,000  15,138 
Jabil Circuit, Inc. sr. unsec. notes 8 1/4s, 2018    11,000  13,104 
Micron Technology, Inc. 144A sr. unsec.       
notes 5 7/8s, 2022    25,000  26,813 
Microsoft Corp. sr. unsec. unsub. notes 5.3s, 2041    25,000  28,939 
Microsoft Corp. sr. unsec. unsub. notes 4.2s, 2019    85,000  94,610 
Oracle Corp. sr. unsec. unsub. notes 5 3/8s, 2040    35,000  39,787 
Oracle Corp. sr. unsec. unsub. notes 2 1/2s, 2022    80,000  76,538 
SunGard Data Systems, Inc. company       
guaranty sr. unsec. sub. notes 6 5/8s, 2019    13,000  13,683 
SunGard Data Systems, Inc. 144A sr. unsec.       
notes 7 5/8s, 2020    12,000  13,080 
Syniverse Holdings, Inc. company       
guaranty sr. unsec. notes 9 1/8s, 2019    13,000  13,926 
Xerox Corp. sr. unsec. notes 6 3/4s, 2039    15,000  18,188 
Xerox Corp. sr. unsec. unsub. notes 5 5/8s, 2019    21,000  24,122 
      1,589,276 
Transportation (0.2%)       
Air Medical Group Holdings, Inc. company       
guaranty sr. notes 9 1/4s, 2018    18,000  19,193 
Burlington Northern Santa Fe, LLC sr. unsec.       
notes 5.4s, 2041    35,000  39,887 
Burlington Northern Santa Fe, LLC sr. unsec.       
unsub. notes 5 3/4s, 2040    35,000  41,762 
CSX Corp. sr. unsec. unsub. notes 4.1s, 2044    70,000  65,983 
Delta Air Lines, Inc. sr. notes Ser. A, 7 3/4s, 2019    45,993  54,042 
FedEx Corp. company guaranty sr. unsec.       
unsub. notes 2 5/8s, 2022    15,000  14,405 

 

Putnam VT Global Asset Allocation Fund  23 

 


CORPORATE BONDS AND NOTES (17.3%)* cont.  Principal amount  Value 
 
Transportation cont.       
Kansas City Southern de Mexico SA de CV       
sr. unsec. unsub. notes 2.35s, 2020    $9,000  $8,615 
Kansas City Southern Railway Co. (The) company       
guaranty sr. unsec. notes 4.3s, 2043    16,000  15,188 
Swift Services Holdings, Inc. company       
guaranty sr. notes 10s, 2018    27,000  28,890 
United AirLines, Inc. pass-through certificates       
Ser. 07-A, 6.636s, 2022    13,845  15,298 
Watco Cos., LLC/Watco Finance Corp. 144A company     
guaranty sr. unsec. notes 6 3/8s, 2023    14,000  14,280 
      317,543 
Utilities and power (1.4%)       
AES Corp./Virginia (The) sr. unsec. unsub. notes       
8s, 2017    42,000  48,930 
AES Corp./Virginia (The) sr. unsec. unsub. notes       
7 3/8s, 2021    27,000  31,590 
AES Corp./Virginia (The) sr. unsec. unsub. notes       
4 7/8s, 2023    7,000  6,930 
Appalachian Power Co. sr. notes Ser. L, 5.8s, 2035  25,000  30,070 
Arizona Public Services Co. sr. unsec. notes       
4 1/2s, 2042    15,000  15,607 
Beaver Valley Funding Corp. sr. bonds 9s, 2017    2,000  2,110 
Boardwalk Pipelines LP company       
guaranty sr. unsec. notes 5 7/8s, 2016    66,000  72,508 
Calpine Corp. 144A company guaranty sr. notes       
7 7/8s, 2020    31,000  33,674 
Calpine Corp. 144A company guaranty sr. notes 6s, 2022  4,000  4,315 
Calpine Corp. 144A company guaranty sr. notes       
5 7/8s, 2024    3,000  3,158 
Colorado Interstate Gas Co., LLC sr. unsec.       
debs. 6.85s, 2037    10,000  11,850 
Commonwealth Edison Co. 1st mtge. bonds 5.9s, 2036  28,000  34,918 
Consolidated Edison Co. of New York sr. unsec.       
notes 7 1/8s, 2018    83,000  100,845 
Consolidated Edison Co. of New York sr. unsec.       
unsub. notes 4.2s, 2042    45,000  44,491 
DPL, Inc. sr. unsec. notes 6 1/2s, 2016    27,000  29,093 
Duke Energy Corp. sr. unsec. unsub. notes 2.15s, 2016  95,000  97,727 
Dynegy Holdings, LLC escrow bonds 7 3/4s, 2019  70,000  88 
El Paso, LLC company guaranty sr. notes 7s, 2017    60,000  67,725 
El Paso, LLC sr. notes Ser. GMTN, 7 3/4s, 2032    17,000  18,615 
Electricite de France 144A jr. unsec. sub. FRN       
notes 5 5/8s, perpetual maturity (France)    150,000  156,705 
Electricite de France (EDF) 144A sr. unsec.       
notes 6.95s, 2039 (France)    20,000  26,587 
Electricite de France (EDF) 144A sr. unsec.       
notes 6 1/2s, 2019 (France)    60,000  71,496 
Electricite de France (EDF) 144A unsec. sub. FRN       
notes 5 1/4s, perpetual maturity (France)    290,000  295,777 
Energy Future Intermediate Holding Co., LLC/EFIH     
Finance, Inc. sr. notes 10s, 2020    19,000  1,805 
Energy Future Intermediate Holding Co., LLC/EFIH     
Finance, Inc. 144A sr. notes 10s, 2020    39,000  3,705 
Energy Transfer Equity LP company       
guaranty sr. unsec. notes 7 1/2s, 2020    13,000  15,015 
Energy Transfer Partners LP sr. unsec.       
unsub. notes 6 1/2s, 2042    30,000  35,779 
Energy Transfer Partners LP sr. unsec.       
unsub. notes 5.2s, 2022    25,000  27,691 

 

CORPORATE BONDS AND NOTES (17.3%)* cont.  Principal amount  Value 
 
Utilities and power cont.       
Enterprise Products Operating, LLC company       
guaranty sr. unsec. unsub. notes 4.85s, 2042    $80,000  $82,727 
EP Energy, LLC/EP Energy Finance, Inc. sr. unsec.     
notes 9 3/8s, 2020    27,000  31,050 
EP Energy, LLC/Everest Acquisition Finance, Inc.       
company guaranty sr. notes 6 7/8s, 2019    10,000  10,663 
EP Energy, LLC/Everest Acquisition Finance, Inc.       
company guaranty sr. unsec. unsub. notes 7 3/4s, 2022  10,000  11,275 
FirstEnergy Corp. sr. unsec. unsub. notes 4 1/4s, 2023  54,000  53,780 
FirstEnergy Corp. sr. unsec. unsub. notes 2 3/4s, 2018  8,000  8,096 
GenOn Energy, Inc. sr. unsec. notes 9 7/8s, 2020    23,000  25,013 
GenOn Energy, Inc. sr. unsec. notes 9 1/2s, 2018    4,000  4,390 
ITC Holdings Corp. 144A sr. unsec. notes 6.05s, 2018  35,000  39,087 
Kansas Gas and Electric Co. bonds 5.647s, 2021    11,612  12,480 
Kinder Morgan Energy Partners LP sr. unsec.       
unsub. notes 3 1/2s, 2021    80,000  81,110 
Kinder Morgan, Inc./DE 144A sr. notes 5s, 2021    49,000  50,593 
MidAmerican Energy Holdings Co. bonds 6 1/8s, 2036  39,000  48,354 
MidAmerican Funding, LLC sr. bonds 6.927s, 2029  50,000  65,223 
Nevada Power Co. mtge. notes 7 1/8s, 2019    40,000  48,979 
NiSource Finance Corp. company       
guaranty sr. unsec. notes 6 1/8s, 2022    25,000  29,548 
NRG Energy, Inc. company guaranty sr. unsec.       
notes 7 7/8s, 2021    60,000  66,525 
NSTAR Electric Co. sr. unsec.       
unsub. notes 2 3/8s, 2022 (Canada)    75,000  71,604 
Oncor Electric Delivery Co., LLC sr. notes 4.1s, 2022  25,000  26,876 
Pacific Gas & Electric Co. sr. unsec. notes 6.05s, 2034  40,000  49,468 
Potomac Edison Co. 144A sr. bonds 5.8s, 2016    76,000  81,880 
PPL Capital Funding, Inc. company       
guaranty sr. unsec. unsub. notes 4.2s, 2022    105,000  112,348 
Public Service Electric & Gas Co.       
sr. notes Ser. MTN, 5 1/2s, 2040    25,000  30,388 
Puget Sound Energy, Inc. jr. sub. FRN       
notes Ser. A, 6.974s, 2067    98,000  102,832 
Regency Energy Partners LP/Regency Energy       
Finance Corp. company guaranty sr. unsec.       
unsub. notes 5 7/8s, 2022    14,000  15,208 
Regency Energy Partners LP/Regency Energy       
Finance Corp. company guaranty sr. unsec.       
unsub. notes 5 1/2s, 2023    13,000  13,585 
Regency Energy Partners LP/Regency Energy       
Finance Corp. company guaranty sr. unsec.       
unsub. notes 4 1/2s, 2023    14,000  13,860 
Southern Star Central Corp. 144A sr. unsec.       
notes 5 1/8s, 2022    20,000  20,150 
Teco Finance, Inc. company guaranty sr. unsec.       
unsub. notes 6 3/4s, 2015    5,000  5,252 
Texas Competitive/Texas Competitive Electric       
Holdings Co., LLC 144A company       
guaranty sr. notes 11 1/2s, 2020 (In default) †    13,000  11,863 
TransCanada PipeLines, Ltd. jr. unsec. sub. FRN       
notes 6.35s, 2067 (Canada)    30,000  31,238 
Union Electric Co. sr. notes 6.4s, 2017    50,000  56,824 
West Penn Power Co. 144A sr. bonds 5.95s, 2017  25,000  28,263 
      2,629,336 
 
Total corporate bonds and notes (cost $31,057,066)    $33,156,703 

 

24  Putnam VT Global Asset Allocation Fund 

 


U.S. GOVERNMENT AND AGENCY     
MORTGAGE OBLIGATIONS (12.2%)*  Principal amount  Value 
 
U.S. Government Guaranteed Mortgage Obligations (2.1%)   
Government National Mortgage Association     
Pass-Through Certificates     
6 1/2s, with due dates from May 20, 2037     
to November 20, 2039  $867,901  $983,504 
3s, TBA, July 1, 2044  3,000,000  3,028,125 
    4,011,629 
U.S. Government Agency Mortgage Obligations (10.1%)   
Federal National Mortgage Association     
Pass-Through Certificates     
6s, TBA, July 1, 2044  5,000,000  5,633,203 
4 1/2s, TBA, July 1, 2044  1,000,000  1,083,125 
4s, TBA, July 1, 2044  9,000,000  9,552,656 
3 1/2s, TBA, July 1, 2029  3,000,000  3,179,297 
    19,448,281 
Total U.S. government and agency mortgage     
obligations (cost $23,227,981)    $23,459,910 
 
MORTGAGE-BACKED SECURITIES (3.3%)*  Principal amount  Value 
 
Agency collateralized mortgage obligations (0.6%)     
Federal Home Loan Mortgage Corporation     
IFB Ser. 3408, Class EK, 25.182s, 2037  $24,544  $35,901 
IFB Ser. 3072, Class SM, 23.24s, 2035  30,078  43,176 
IFB Ser. 3072, Class SB, 23.094s, 2035  27,871  39,740 
IFB Ser. 3249, Class PS, 21.774s, 2036  27,716  38,112 
IFB Ser. 3065, Class DC, 19.405s, 2035  52,486  75,132 
IFB Ser. 2990, Class LB, 16.558s, 2034  46,750  61,246 
IFB Ser. 310, Class S4, IO, 5.798s, 2043  97,652  25,338 
IFB Ser. 311, Class S1, IO, 5.798s, 2043  241,061  54,796 
IFB Ser. 308, Class S1, IO, 5.798s, 2043  180,626  46,173 
IFB Ser. 314, Class AS, IO, 5.738s, 2043  214,902  49,175 
Federal National Mortgage Association     
IFB Ser. 06-8, Class HP, 24.009s, 2036  42,648  65,920 
IFB Ser. 05-45, Class DA, 23.863s, 2035  56,118  83,976 
IFB Ser. 07-53, Class SP, 23.643s, 2037  37,447  55,511 
IFB Ser. 05-75, Class GS, 19.794s, 2035  19,637  26,257 
Ser. 06-46, Class OC, PO, zero %, 2036  14,534  12,819 
Government National Mortgage Association     
IFB Ser. 13-129, Class CS, IO, 5.997s, 2042  220,170  37,891 
Ser. 10-9, Class UI, IO, 5s, 2040  194,538  43,094 
Ser. 13-14, Class IO, IO, 3 1/2s, 2042  640,667  94,550 
Ser. 12-141, Class WI, IO, 3 1/2s, 2041  744,946  113,932 
    1,002,739 
Commercial mortgage-backed securities (2.0%)     
Banc of America Commercial Mortgage Trust     
FRB Ser. 07-3, Class A3, 5.775s, 2049  85,527  85,707 
FRB Ser. 07-2, Class A2, 5.634s, 2049  5,423  5,442 
Ser. 06-5, Class A3, 5.39s, 2047  58,000  58,798 
Ser. 07-1, Class XW, IO, 0.494s, 2049  1,016,019  7,860 
Banc of America Commercial Mortgage Trust 144A     
Ser. 07-5, Class XW, IO, 0.531s, 2051  2,005,714  19,002 
Banc of America Merrill Lynch Commercial     
Mortgage, Inc. 144A     
Ser. 04-4, Class XC, IO, 0.872s, 2042  307,365  813 
Ser. 04-5, Class XC, IO, 0.834s, 2041  982,011  2,030 
Ser. 02-PB2, Class XC, IO, 0.416s, 2035  155,699  78 
Bear Stearns Commercial Mortgage Securities Trust     
Ser. 04-PR3I, Class X1, IO, 0.743s, 2041  77,075  227 
Bear Stearns Commercial Mortgage Securities Trust     
144A Ser. 06-PW14, Class X1, IO, 0.832s, 2038  1,306,566  20,095 
Citigroup Commercial Mortgage Trust FRB     
Ser. 05-C3, Class AJ, 4.96s, 2043  43,000  43,417 

 

MORTGAGE-BACKED SECURITIES (3.3%)* cont.  Principal amount  Value 
 
Commercial mortgage-backed securities cont.     
Citigroup Commercial Mortgage Trust 144A     
Ser. 06-C5, Class XC, IO, 0.735s, 2049  $6,678,198  $84,813 
Citigroup/Deutsche Bank Commercial Mortgage     
Trust 144A     
Ser. 07-CD4, Class XC, IO, 0.559s, 2049  6,871,483  48,100 
Ser. 07-CD4, Class XW, IO, 0.559s, 2049  1,263,535  10,108 
COMM Mortgage Trust     
Ser. 07-C9, Class AJ, 5.65s, 2049  91,000  98,107 
FRB Ser. 05-LP5, Class D, 5.254s, 2043  94,000  96,621 
Ser. 14-UBS2, Class XA, IO, 1.607s, 2047  401,328  37,856 
Ser. 14-CR16, Class XA, IO, 1.447s, 2047  1,164,225  93,550 
Ser. 14-CR17, Class XA, IO, 1.38s, 2047  420,753  33,762 
Ser. 06-C8, Class XS, IO, 0.706s, 2046  5,672,778  64,744 
Credit Suisse Commercial Mortgage Trust 144A     
Ser. 07-C2, Class AX, IO, 0.226s, 2049  6,377,413  30,143 
Credit Suisse First Boston Mortgage     
Securities Corp. 144A     
Ser. 98-C1, Class F, 6s, 2040  42,324  46,557 
Ser. 02-CP3, Class AX, IO, 1.471s, 2035  61,842  941 
First Union National Bank-Bank of America     
Commercial Mortgage Trust 144A Ser. 01-C1,     
Class 3, IO, 1.956s, 2033  32,846  238 
GE Business Loan Trust 144A Ser. 04-2, Class D,     
2.902s, 2032  24,242  17,473 
GE Capital Commercial Mortgage Corp. FRB     
Ser. 05-C1, Class B, 4.846s, 2048  74,000  74,936 
GE Capital Commercial Mortgage Corp. 144A     
Ser. 07-C1, Class XC, IO, 0.382s, 2049  8,573,260  50,342 
Ser. 05-C3, Class XC, IO, 0.282s, 2045  21,654,781  33,320 
GMAC Commercial Mortgage Securities, Inc. Trust     
FRB Ser. 04-C2, Class A4, 5.301s, 2038  15,684  15,709 
Ser. 97-C1, Class X, IO, 1.463s, 2029  38,156  1,408 
Ser. 05-C1, Class X1, IO, 0.765s, 2043  2,017,388  7,194 
Greenwich Capital Commercial Funding Corp.     
FRB Ser. 05-GG3, Class E, 5.087s, 2042  55,000  54,274 
FRB Ser. 05-GG3, Class D, 4.986s, 2042  43,000  43,162 
FRB Ser. 05-GG3, Class B, 4.894s, 2042  157,000  159,543 
GS Mortgage Securities Trust     
Ser. 06-GG6, Class A2, 5.506s, 2038  403  403 
Ser. 05-GG4, Class B, 4.841s, 2039  219,000  220,139 
GS Mortgage Securities Trust 144A     
Ser. 98-C1, Class F, 6s, 2030  3,353  3,349 
Ser. 06-GG8, Class X, IO, 0.78s, 2039  9,004,315  152,173 
Ser. 06-GG6, Class XC, IO, 0.158s, 2038  1,444,508  998 
JPMorgan Chase Commercial Mortgage     
Securities Trust     
FRB Ser. 07-CB20, Class AJ, 6.279s, 2051  38,500  40,825 
FRB Ser. 06-LDP7, Class B, 6.057s, 2045  107,000  92,043 
FRB Ser. 04-CB9, Class B, 5.773s, 2041  47,670  47,670 
Ser. 06-LDP8, Class B, 5.52s, 2045  36,000  36,972 
FRB Ser. 06-LDP8, Class AJ, 5.48s, 2045  109,000  115,747 
FRB Ser. 13-C10, Class C, 4.298s, 2047  83,000  84,774 
Ser. 06-LDP8, Class X, IO, 0.725s, 2045  1,539,817  15,871 
Ser. 07-LDPX, Class X, IO, 0.488s, 2049  3,594,599  31,859 
JPMorgan Chase Commercial Mortgage Securities     
Trust 144A Ser. 05-CB12, Class X1, IO, 0.493s, 2037  2,041,700  5,800 
LB Commercial Conduit Mortgage Trust 144A     
Ser. 99-C1, Class G, 6.41s, 2031  19,167  20,029 
Ser. 98-C4, Class H, 5.6s, 2035  50,000  52,187 

 

Putnam VT Global Asset Allocation Fund  25 

 


MORTGAGE-BACKED SECURITIES (3.3%)* cont.  Principal amount  Value 
 
Commercial mortgage-backed securities cont.     
LB-UBS Commercial Mortgage Trust Ser. 06-C7,     
Class A2, 5.3s, 2038  $73,210  $74,814 
LB-UBS Commercial Mortgage Trust 144A     
FRB Ser. 04-C4, Class H, 6.622s, 2036  100,000  102,440 
Ser. 06-C6, Class XCL, IO, 0.855s, 2039  8,239,443  117,676 
Ser. 06-C7, Class XCL, IO, 0.85s, 2038  1,950,259  26,586 
Ser. 06-C7, Class XW, IO, 0.85s, 2038  1,105,324  15,068 
Ser. 05-C5, Class XCL, IO, 0.603s, 2040  3,352,634  20,297 
Ser. 05-C2, Class XCL, IO, 0.484s, 2040  2,280,350  4,511 
Ser. 05-C7, Class XCL, IO, 0.371s, 2040  2,663,119  6,336 
Merrill Lynch Mortgage Trust FRB Ser. 07-C1,     
Class A3, 6.033s, 2050  87,374  87,790 
Merrill Lynch Mortgage Trust 144A     
Ser. 04-KEY2, Class XC, IO, 1.067s, 2039  366,859  364 
Ser. 05-MCP1, Class XC, IO, 0.766s, 2043  2,068,145  7,706 
Mezz Cap Commercial Mortgage Trust 144A     
Ser. 05-C3, Class X, IO, 6.525s, 2044  91,655  5,325 
Ser. 06-C4, Class X, IO, 6.472s, 2045  342,344  25,881 
Morgan Stanley Bank of America Merrill Lynch     
Trust FRB Ser. 13-C11, Class C, 4.565s, 2046 F  72,000  73,440 
Morgan Stanley Bank of America Merrill Lynch     
Trust 144A FRB Ser. 13-C11, Class D, 4.565s, 2046  100,000  93,720 
Morgan Stanley Capital I Trust     
FRB Ser. 07-HQ12, Class A2, 5.773s, 2049  32,999  33,032 
Ser. 07-IQ14, Class A2, 5.61s, 2049  52,923  53,158 
Morgan Stanley Capital I Trust 144A FRB     
Ser. 11-C3, Class E, 5.356s, 2049  37,000  38,347 
Morgan Stanley ReREMIC Trust 144A FRB     
Ser. 10-C30A, Class A3B, 5.246s, 2043  97,722  97,837 
UBS-Barclays Commercial Mortgage Trust 144A     
FRB Ser. 12-C3, Class C, 5.123s, 2049  50,000  53,600 
Ser. 12-C4, Class XA, IO, 2.016s, 2045  364,384  39,673 
Wachovia Bank Commercial Mortgage Trust     
Ser. 07-C34, IO, 0.494s, 2046  1,410,018  17,061 
Wachovia Bank Commercial Mortgage Trust 144A     
Ser. 05-C18, Class XC, IO, 0.483s, 2042  2,681,019  6,890 
Ser. 06-C26, Class XC, IO, 0.185s, 2045  1,395,733  2,122 
Wells Fargo Commercial Mortgage Trust 144A FRB     
Ser. 13-LC12, Class D, 4.439s, 2046  100,000  91,763 
WF-RBS Commercial Mortgage Trust FRB Ser. 14-C19,   
Class C, 4.646s, 2047  75,000  77,438 
WF-RBS Commercial Mortgage Trust 144A     
FRB Ser. 11-C2, Class D, 5.647s, 2044  132,000  141,332 
Ser. 14-C19, Class D, 4.234s, 2047  47,000  42,021 
Ser. 12-C10, Class XA, IO, 1.961s, 2045  467,955  49,332 
Ser. 13-C12, Class XA, IO, 1.649s, 2048  1,951,852  169,046 
    3,841,815 
Residential mortgage-backed securities (non-agency) (0.7%)   
Barclays Capital, LLC Trust FRB Ser. 12-RR10,     
Class 9A2, 2.663s, 2035  40,000  37,700 
Barclays Capital, LLC Trust 144A     
FRB Ser. 12-RR11, Class 5A3, 10.161s, 2037  50,654  34,698 
FRB Ser. 14-RR2, Class 2A1, 3 1/2s, 2036  143,666  142,050 
Countrywide Alternative Loan Trust     
Ser. 05-28CB, Class 2A7, 5 3/4s, 2035  228,340  213,498 
FRB Ser. 05-51, Class 1A1, 0.475s, 2035  78,976  68,709 
Credit Suisse Commercial Mortgage Trust 144A FRB     
Ser. 13-5R, Class 1A6, 0.428s, 2036  40,000  32,512 
Residential Accredit Loans, Inc. FRB Ser. 06-QO7,     
Class 1A1, 0.924s, 2046  157,752  108,060 

 

MORTGAGE-BACKED SECURITIES (3.3%)* cont.  Principal amount  Value 
 
Residential mortgage-backed securities (non-agency) cont.   
WAMU Mortgage Pass-Through Certificates     
FRB Ser. 06-AR1, Class 2A1B, 1.194s, 2046  $107,911  $99,279 
FRB Ser. 06-AR3, Class A1B, 1.124s, 2046  50,141  40,890 
FRB Ser. 05-AR13, Class A1C3, 0.642s, 2045  99,196  87,541 
FRB Ser. 05-AR9, Class A1C3, 0.632s, 2045  109,905  98,915 
FRB Ser. 05-AR15, Class A1B2, 0.562s, 2045  73,428  64,859 
FRB Ser. 05-AR13, Class A1B3, 0.512s, 2045  189,135  168,330 
FRB Ser. 05-AR15, Class A1B3, 0.492s, 2045  140,808  123,672 
Wells Fargo Mortgage Loan Trust FRB Ser. 12-RR2,     
Class 1A2, 0.331s, 2047    100,000  74,000 
      1,394,713 
 
Total mortgage-backed securities (cost $5,629,259)  $6,239,267 
 
FOREIGN GOVERNMENT AND AGENCY       
BONDS AND NOTES (0.7%)*    Principal amount  Value 
 
Argentina (Republic of) sr. unsec. bonds 8.28s,     
2033 (Argentina)    $56,082  $47,386 
Argentina (Republic of) sr. unsec. bonds 7s, 2017     
(Argentina)    40,000  37,300 
Argentina (Republic of) sr. unsec.       
unsub. bonds 7s, 2015 (Argentina)    414,000  398,889 
Argentina (Republic of) sr. unsec.       
unsub. notes Ser. LOC, 8.28s, 2033 (Argentina)  35,051  29,268 
Argentina (Republic of) sr. unsec.       
unsub. notes Ser. NY, 8.28s, 2033 (Argentina)  259,377  216,580 
Brazil (Federal Republic of) unsec. notes 10s,     
2021 (Brazil)  BRL  805  332,945 
Poland (Republic of) sr. unsec. bonds 5s,       
2022 (Poland)    $155,000  172,283 
South Africa (Republic of) sr. unsec.       
unsub. notes 4.665s, 2024 (South Africa)    135,000  137,531 
Total foreign government and agency bonds     
and notes (cost $1,387,263)      $1,372,182 
 
SENIOR LOANS (0.2%)* c    Principal amount  Value 
 
Caesars Entertainment Operating Co., Inc. bank     
term loan FRN Ser. B6, 5.528s, 2018    $151,836  $141,570 
Caesars Entertainment Operating Co., Inc. bank     
term loan FRN Ser. B7, 9 3/4s, 2017    15,000  14,792 
Caesars Growth Properties Holdings, LLC bank term     
loan FRN 6 1/4s, 2021    50,000  49,920 
First Data Corp. bank term loan FRN 4.154s, 2021  10,568  10,583 
First Data Corp. bank term loan FRN 4.154s, 2018  99,303  99,409 
Neiman Marcus Group, Ltd., Inc. bank term loan     
FRN 4 1/4s, 2020    54,863  54,741 
Texas Competitive Electric Holdings Co., LLC bank     
term loan FRN 4.651s, 2017    101,971  84,126 
Total senior loans (cost $458,486)      $455,141 
 
PREFERRED STOCKS (0.1%)*    Shares  Value 
 
Ally Financial, Inc. 144A 7.00% cum. pfd.    93  $93,235 
GMAC Capital Trust I Ser. 2, $2.031 cum. pfd.  680  18,564 
HSBC USA, Inc. $0.88 pfd. (United Kingdom)  4,020  91,013 
M/I Homes, Inc. Ser. A, $2.438 pfd.    880  22,555 
Total preferred stocks (cost $181,341)      $225,367 
 
CONVERTIBLE PREFERRED STOCKS (—%)*    Shares  Value 
 
EPR Properties Ser. C, $1.44 cv. pfd. R    1,280  $29,420 
United Technologies Corp. $3.75 cv. pfd.    400  26,076 
Total convertible preferred stocks (cost $43,395)    $55,496 

 

26  Putnam VT Global Asset Allocation Fund 

 


INVESTMENT COMPANIES (—%)*    Shares  Value 
 
Hercules Technology Growth Capital, Inc. S    1,608  $25,985 
Market Vectors Vietnam ETF (Vietnam)    970  20,176 
Total investment companies (cost $42,486)      $46,161 
 
CONVERTIBLE BONDS AND NOTES (—%)*  Principal amount  Value 
 
iStar Financial, Inc. cv. sr. unsec.       
unsub. notes 3s, 2016 R      $10,000  $14,169 
Jazz Technologies, Inc. 144A cv. unsec. notes 8s, 2018  20,000  21,800 
Total convertible bonds and notes (cost $28,219)    $35,969 
 
MUNICIPAL BONDS AND NOTES (—%)*  Principal amount  Value 
 
IL State G.O. Bonds, 4.421s, 1/1/15    $20,000  $20,388 
Total municipal bonds and notes (cost $20,000)    $20,388 
 
WARRANTS (—%)* †  Expiration date  Strike price  Warrants  Value 
Tower Semiconductor,         
Ltd. 144A (Israel) F  6/30/15  $1.70  7,932  $— 
Total warrants (cost $1,586)      $— 
 
SHORT-TERM INVESTMENTS (22.1%)*  Principal amount/shares  Value 
 
Putnam Cash Collateral Pool, LLC 0.18% d  Shares  3,711,796  $3,711,796 
Putnam Short Term Investment Fund 0.07% L  Shares  35,217,188  35,217,188 
SSgA Prime Money Market Fund 0.01% P  Shares  120,000  120,000 
U.S. Treasury Bills with effective yields ranging     
from 0.07% to 0.10%, August 21, 2014 # §    $3,352,000  3,351,581 
Total short-term investments (cost $42,400,568)    $42,400,565 
 
Total investments (cost $194,698,038)      $217,352,073 

 

Key to holding’s currency abbreviations 
 
BRL  Brazilian Real 
CAD  Canadian Dollar 
USD / $  United States Dollar 
 
Key to holding’s abbreviations 
 
ADR  American Depository Receipts: represents ownership of foreign securities on deposit with a custodian bank 
BKNT  Bank Note 
ETF  Exchange Traded Fund 
FRB  Floating Rate Bonds: the rate shown is the current interest rate at the close of the reporting period 
FRN  Floating Rate Notes: the rate shown is the current interest rate at the close of the reporting period 
GMTN  Global Medium Term Notes 
G.O. Bonds  General Obligation Bonds 
IFB  Inverse Floating Rate Bonds, which are securities that pay interest rates that vary inversely to changes in the market 
  interest rates. As interest rates rise, inverse floaters produce less current income. The rate shown is the current interest rate 
  at the close of the reporting period. 
IO  Interest Only 
JSC  Joint Stock Company 
MTN  Medium Term Notes 
OJSC  Open Joint Stock Company 
PJSC  Public Joint Stock Company 
PO  Principal Only 
TBA  To Be Announced Commitments 

 

Notes to the fund’s portfolio

Unless noted otherwise, the notes to the fund’s portfolio are for the close of the fund’s reporting period, which ran from January 1, 2014 through June 30, 2014 (the reporting period). Within the following notes to the portfolio, references to “ASC 820” represent Accounting Standards Codification 820 Fair Value Measurements and Disclosures and references to “OTC”, if any, represent over-the-counter.

* Percentages indicated are based on net assets of $191,738,344.

† Non-income-producing security.

∆∆ Security is restricted with regard to public resale. The total fair value of this security and any other restricted securities (excluding 144A securities), if any, held at the close of the reporting period was $19,184, or less than 0.1% of net assets.

‡‡Income may be received in cash or additional securities at the discretion of the issuer.

# This security, in part or in entirety, was pledged and segregated with the broker to cover margin requirements for futures contracts at the close of the reporting period.

§ This security, in part or in entirety, was pledged and segregated with the custodian for collateral on the initial margin on certain centrally cleared derivative contracts at the close of the reporting period.

c Senior loans are exempt from registration under the Securities Act of 1933, as amended, but contain certain restrictions on resale and cannot be sold publicly. These loans pay interest at rates which adjust periodically. The interest rates shown for senior loans are the current interest rates at the close of the reporting period. Senior loans are also subject to mandatory and/or optional prepayment which cannot be predicted. As a result, the remaining maturity may be substantially less than the stated maturity shown (Notes 1 and 6).

d Affiliated company. See Note 1 to the financial statements regarding securities lending. The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period.

F Security is valued at fair value following procedures approved by the Trustees. Securities may be classified as Level 2 or Level 3 for ASC 820 based on the securities’ valuation inputs (Note 1).

L Affiliated company (Note 5). The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period.

P Security was pledged, or purchased with cash that was pledged, to the fund for collateral on certain derivative contracts. The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period (Note 1).

R Real Estate Investment Trust.

S Security on loan, in part or in entirety, at the close of the reporting period (Note 1).

At the close of the reporting period, the fund maintained liquid assets totaling $54,855,102 to cover certain derivatives contracts, delayed delivery securities and the settlement of certain securities.

UR At the reporting period end, 200 shares owned by the fund were not formally entered on the company’s shareholder register, due to local restrictions on foreign ownership. While the fund has full title to these unregistered shares, these shares do not carry voting rights.

Debt obligations are considered secured unless otherwise indicated.

144A after the name of an issuer represents securities exempt from registration under Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

See Note 1 to the financial statements regarding TBA commitments.

The dates shown on debt obligations are the original maturity dates.

Putnam VT Global Asset Allocation Fund  27 

 


FORWARD CURRENCY CONTRACTS at 6/30/14 (aggregate face value $55,349,943) (Unaudited)

            Unrealized 
    Contract  Delivery    Aggregate  appreciation/ 
Counterparty  Currency  type  date  Value  face value  (depreciation) 
Bank of America N.A.             
  Canadian Dollar  Buy  7/17/14  $194,578  $190,840  $3,738 
  Canadian Dollar  Sell  7/17/14  197,201  189,854  (7,347) 
  Chilean Peso  Buy  7/17/14  852  848  4 
  Chilean Peso  Sell  7/17/14  852  858  6 
  Colombian Peso  Buy  7/17/14  208,326  198,147  10,179 
  Colombian Peso  Sell  7/17/14  208,326  201,177  (7,149) 
  Euro  Sell  9/17/14  3,073,048  3,049,721  (23,327) 
  Singapore Dollar  Sell  8/20/14  314,625  312,299  (2,326) 
Barclays Bank PLC             
  Australian Dollar  Sell  7/17/14  1,978  3,177  1,199 
  British Pound  Sell  9/17/14  5,152,695  5,038,906  (113,789) 
  Canadian Dollar  Sell  7/17/14  194,766  191,788  (2,978) 
  Euro  Sell  9/17/14  1,242,588  1,232,881  (9,707) 
  Hong Kong Dollar  Sell  8/20/14  411,107  411,248  141 
  Japanese Yen  Sell  8/20/14  106,750  105,235  (1,515) 
  Mexican Peso  Buy  7/17/14  75,791  71,232  4,559 
  New Zealand Dollar  Buy  7/17/14  275,510  272,173  3,337 
  Norwegian Krone  Buy  9/17/14  67,282  68,716  (1,434) 
  Singapore Dollar  Buy  8/20/14  52,531  52,178  353 
  South African Rand  Sell  7/17/14  117,807  114,085  (3,722) 
  South Korean Won  Buy  8/20/14  429,876  422,475  7,401 
  Swedish Krona  Sell  9/17/14  184,423  184,117  (306) 
  Swiss Franc  Sell  9/17/14  496,491  489,997  (6,494) 
Citibank, N.A.             
  Australian Dollar  Buy  7/17/14  390,622  382,346  8,276 
  Australian Dollar  Sell  7/17/14  390,622  386,164  (4,458) 
  Brazilian Real  Buy  7/2/14  386,015  377,697  8,318 
  Brazilian Real  Sell  7/2/14  386,015  385,230  (785) 
  Brazilian Real  Buy  10/2/14  376,100  375,479  621 
  British Pound  Buy  9/17/14  2,675,974  2,619,578  56,396 
  Canadian Dollar  Sell  7/17/14  480,871  462,563  (18,308) 
  Chilean Peso  Sell  7/17/14  112,152  111,614  (538) 
  Danish Krone  Sell  9/17/14  191,641  190,086  (1,555) 
  Euro  Sell  9/17/14  2,447,645  2,433,669  (13,976) 
  Japanese Yen  Sell  8/20/14  197,032  200,716  3,684 
  Mexican Peso  Buy  7/17/14  148,362  147,174  1,188 
  New Zealand Dollar  Buy  7/17/14  7,956  2,541  5,415 
  Norwegian Krone  Buy  9/17/14  572,066  579,907  (7,841) 
  Thai Baht  Buy  8/20/14  116,148  116,437  (289) 
  Thai Baht  Sell  8/20/14  116,148  115,943  (205) 
Credit Suisse International             
  Australian Dollar  Sell  7/17/14  192,532  190,727  (1,805) 
  British Pound  Sell  9/17/14  798,380  781,546  (16,834) 
  Canadian Dollar  Sell  7/17/14  194,672  185,881  (8,791) 
  Euro  Sell  9/17/14  309,825  308,060  (1,765) 
  Indian Rupee  Buy  8/20/14  304,232  306,300  (2,068) 
  Japanese Yen  Sell  8/20/14  916,409  900,547  (15,862) 
  New Zealand Dollar  Buy  7/17/14  274,111  272,669  1,442 
  Norwegian Krone  Buy  9/17/14  401,870  410,524  (8,654) 
  Singapore Dollar  Sell  8/20/14  99,368  98,689  (679) 
  South Korean Won  Buy  8/20/14  120,267  118,193  2,074 

 

28  Putnam VT Global Asset Allocation Fund 

 


FORWARD CURRENCY CONTRACTS at 6/30/14 (aggregate face value $55,349,943) (Unaudited) cont.

            Unrealized 
    Contract  Delivery    Aggregate  appreciation/ 
Counterparty  Currency  type  date  Value  face value  (depreciation) 
Credit Suisse International cont.             
  Swedish Krona  Sell  9/17/14  $186,577  $184,588  $(1,989) 
  Swiss Franc  Buy  9/17/14  54,840  54,121  719 
Deutsche Bank AG             
  Australian Dollar  Sell  7/17/14  181,511  179,910  (1,601) 
  British Pound  Buy  9/17/14  9,065  9,008  57 
  British Pound  Sell  9/17/14  9,065  8,875  (190) 
  Canadian Dollar  Buy  7/17/14  196,920  191,425  5,495 
  Canadian Dollar  Sell  7/17/14  196,920  189,880  (7,040) 
  Czech Koruna  Buy  9/17/14  117,193  116,626  567 
  Czech Koruna  Sell  9/17/14  117,193  116,128  (1,065) 
  Euro  Sell  9/17/14  547,604  544,749  (2,855) 
  Japanese Yen  Sell  8/20/14  99,537  98,109  (1,428) 
  New Zealand Dollar  Buy  7/17/14  390,050  380,453  9,597 
  Norwegian Krone  Buy  9/17/14  102,329  102,541  (212) 
  Polish Zloty  Buy  9/17/14  115,127  114,560  567 
  Swedish Krona  Sell  9/17/14  192,425  191,017  (1,408) 
  Swiss Franc  Sell  9/17/14  38,365  37,867  (498) 
Goldman Sachs International             
  Australian Dollar  Sell  7/17/14  1,319  1,873  554 
  British Pound  Buy  9/17/14  8,039  7,988  51 
  British Pound  Sell  9/17/14  8,039  7,869  (170) 
  Canadian Dollar  Sell  7/17/14  19,767  18,562  (1,205) 
  Japanese Yen  Sell  8/20/14  196,573  190,958  (5,615) 
  Swedish Krona  Sell  9/17/14  192,080  193,514  1,434 
HSBC Bank USA, National Association             
  Australian Dollar  Sell  7/17/14  183,772  180,016  (3,756) 
  British Pound  Sell  9/17/14  2,519,651  2,466,499  (53,152) 
  Canadian Dollar  Buy  7/17/14  28,573  27,899  674 
  Indonesian Rupiah  Buy  8/20/14  226,019  231,635  (5,616) 
  Indonesian Rupiah  Sell  8/20/14  226,019  228,767  2,748 
  Japanese Yen  Sell  8/20/14  784,074  772,916  (11,158) 
  Swedish Krona  Sell  9/17/14  385,043  384,348  (695) 
JPMorgan Chase Bank N.A.             
  Australian Dollar  Sell  7/17/14  189,612  185,582  (4,030) 
  Brazilian Real  Buy  7/2/14  192,578  188,066  4,512 
  Brazilian Real  Sell  7/2/14  192,578  192,230  (348) 
  Brazilian Real  Sell  10/2/14  750  2,066  1,316 
  British Pound  Sell  9/17/14  868,674  853,481  (15,193) 
  Canadian Dollar  Sell  7/17/14  100,615  94,524  (6,091) 
  Euro  Sell  9/17/14  861,264  856,071  (5,193) 
  Hungarian Forint  Sell  9/17/14  115,789  117,090  1,301 
  Indian Rupee  Buy  8/20/14  307,222  308,778  (1,556) 
  Japanese Yen  Buy  8/20/14  169,006  168,745  261 
  Mexican Peso  Buy  7/17/14  93,185  91,749  1,436 
  New Taiwan Dollar  Sell  8/20/14  234,591  233,134  (1,457) 
  New Zealand Dollar  Buy  7/17/14  301,740  294,119  7,621 
  Norwegian Krone  Buy  9/17/14  374,301  383,644  (9,343) 
  Singapore Dollar  Sell  8/20/14  50,686  50,340  (346) 
  Swedish Krona  Sell  9/17/14  582,986  581,977  (1,009) 
  Thai Baht  Buy  8/20/14  1,442  1,444  (2) 
  Thai Baht  Sell  8/20/14  1,442  1,443  1 

 

Putnam VT Global Asset Allocation Fund  29 

 


FORWARD CURRENCY CONTRACTS at 6/30/14 (aggregate face value $55,349,943) (Unaudited) cont.

            Unrealized 
    Contract  Delivery    Aggregate  appreciation/ 
Counterparty  Currency  type  date  Value  face value  (depreciation) 
State Street Bank and Trust Co.             
  Australian Dollar  Sell  7/17/14  $375,363  $359,095  $(16,268) 
  Brazilian Real  Buy  7/2/14  573,750  564,819  8,931 
  Brazilian Real  Sell  7/2/14  573,750  573,932  182 
  Brazilian Real  Buy  10/2/14  370,631  369,798  833 
  British Pound  Buy  9/17/14  197,885  193,741  4,144 
  British Pound  Sell  9/17/14  197,885  193,994  (3,891) 
  Canadian Dollar  Buy  7/17/14  680,695  661,528  19,167 
  Canadian Dollar  Sell  7/17/14  680,695  660,939  (19,756) 
  Chilean Peso  Buy  7/17/14  191,743  192,991  (1,248) 
  Chilean Peso  Sell  7/17/14  195,253  189,168  (6,085) 
  Euro  Sell  9/17/14  200,660  199,448  (1,212) 
  Japanese Yen  Sell  8/20/14  189,412  187,713  (1,699) 
  Mexican Peso  Buy  7/17/14  191,674  189,196  2,478 
  Mexican Peso  Sell  7/17/14  191,674  192,107  433 
  New Taiwan Dollar  Sell  8/20/14  118,514  118,011  (503) 
  New Zealand Dollar  Buy  7/17/14  202,414  196,032  6,382 
  Norwegian Krone  Buy  9/17/14  626,051  634,274  (8,223) 
  Singapore Dollar  Sell  8/20/14  153,503  152,464  (1,039) 
  Swedish Krona  Sell  9/17/14  183,242  181,046  (2,196) 
UBS AG             
  Australian Dollar  Sell  7/17/14  191,684  186,564  (5,120) 
  British Pound  Buy  9/17/14  5,757,637  5,634,851  122,786 
  Canadian Dollar  Sell  7/17/14  151,672  145,451  (6,221) 
  Euro  Buy  9/17/14  3,907,193  3,886,140  21,053 
  Japanese Yen  Sell  8/20/14  188,515  187,160  (1,355) 
  Singapore Dollar  Sell  8/20/14  41,945  41,834  (111) 
WestPac Banking Corp.             
  Australian Dollar  Buy  7/17/14  203,835  198,499  5,336 
  Australian Dollar  Sell  7/17/14  203,835  200,950  (2,885) 
  British Pound  Buy  9/17/14  208,318  207,013  1,305 
  British Pound  Sell  9/17/14  208,318  203,919  (4,399) 
  Canadian Dollar  Sell  7/17/14  110,076  104,636  (5,440) 
  Japanese Yen  Sell  8/20/14  866,769  855,596  (11,173) 
  New Zealand Dollar  Buy  7/17/14  198,392  195,411  2,981 
  New Zealand Dollar  Sell  7/17/14  198,384  192,207  (6,177) 
Total            $(180,476) 

 

FUTURES CONTRACTS         
OUTSTANDING        Unrealized 
at 6/30/14  Number of    Expiration  appreciation/ 
(Unaudited)  contracts  Value  date  (depreciation) 
Euro STOXX 50 Index         
(Short)  45  $1,991,510  Sep-14  $20,180 
FTSE 100 Index (Short)  17  1,952,485  Sep-14  24,606 
MSCI EAFE Index Mini         
(Short)  11  1,082,895  Sep-14  (5,706) 
Russell 2000 Index Mini         
(Long)  63  7,498,890  Sep-14  219,429 
Russell 2000 Index Mini         
(Short)  17  2,023,510  Sep-14  (59,279) 
S&P 500 Index E-Mini         
(Long)  97  9,469,140  Sep-14  141,426 

 

FUTURES CONTRACTS         
OUTSTANDING        Unrealized 
at 6/30/14  Number of    Expiration  appreciation/ 
(Unaudited) cont.  contracts  Value  date  (depreciation) 
S&P 500 Index E-Mini         
(Short)  45  $4,392,900  Sep-14  $(65,790) 
S&P Mid Cap 400 Index         
E-Mini (Long)  24  3,430,320  Sep-14  81,312 
S&P Mid Cap 400 Index         
E-Mini (Short)  20  2,858,600  Sep-14  (67,840) 
SPI 200 Index (Long)  29  3,660,201  Sep-14  2,612 
U.S. Treasury Bond 30 yr         
(Long)  16  2,195,000  Sep-14  11,876 
U.S. Treasury Bond Ultra         
30 yr (Long)  8  1,199,500  Sep-14  7,297 

 

30  Putnam VT Global Asset Allocation Fund 

 


FUTURES CONTRACTS         
OUTSTANDING        Unrealized 
at 6/30/14  Number of    Expiration  appreciation/ 
(Unaudited) cont.  contracts  Value  date  (depreciation) 
U.S. Treasury Note 2 yr         
(Long)  26  $5,709,438  Sep-14  $(2,753) 
U.S. Treasury Note 2 yr         
(Short)  26  5,709,438  Sep-14  3,201 
U.S. Treasury Note 5 yr         
(Long)  63  7,526,039  Sep-14  (5,784) 
U.S. Treasury Note 10 yr         
(Long)  24  3,004,125  Sep-14  3,704 
Total        $308,491 

 

WRITTEN SWAP OPTIONS OUTSTANDING at 6/30/14 (premiums $38,821) (Unaudited) 
Counterparty       
Fixed obligation % to receive or (pay)/  Expiration  Contract   
Floating rate index/Maturity date  date/strike  amount  Value 
JPMorgan Chase Bank N.A.       
(6.00 Floor)/3 month       
USD-LIBOR-BBA/Mar-18  Mar-18/6.00  $218,000  $39,131 
Total      $39,131 

 

CENTRALLY CLEARED INTEREST RATE SWAP CONTRACTS OUTSTANDING at 6/30/14 (Unaudited)

 

    Upfront        Unrealized 
    premium  Termination  Payments made by  Payments received by  appreciation/ 
Notional amount    received (paid)  date  fund per annum  fund per annum  (depreciation) 
  $14,260,000 E  $47,326  9/17/16  3 month USD-LIBOR-BBA  1.00%  $(6,771) 
  8,132,000 E  70,326  9/17/19  3 month USD-LIBOR-BBA  2.25%  (24,669) 
  3,809,000 E  87,381  9/17/24  3 month USD-LIBOR-BBA  3.25%  (13,965) 
  475,000 E  (14,809)  9/17/44  3 month USD-LIBOR-BBA  4.00%  1,607 
Total    $190,224        $(43,798) 

 

E Extended effective date.

OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 6/30/14 (Unaudited)

  Upfront    Payments  Total return  Unrealized 
Swap counterparty/  premium  Termination  received (paid) by  received by or  appreciation/ 
Notional amount  received (paid)  date  fund per annum  paid by fund  (depreciation) 
Barclays Bank PLC           
$18,145  $—  1/12/42  4.00% (1 month USD-LIBOR)  Synthetic TRS Index 4.00%  $(10) 
        30 year Fannie Mae pools   
574,764  —  1/12/41  4.00% (1 month USD-LIBOR)  Synthetic TRS Index 4.00%  (325) 
        30 year Fannie Mae pools   
4,052  —  1/12/41  5.00% (1 month USD-LIBOR)  Synthetic MBX Index 5.00%  38 
        30 year Fannie Mae pools   
12,029  —  1/12/40  5.00% (1 month USD-LIBOR)  Synthetic MBX Index 5.00%  110 
        30 year Fannie Mae pools   
95,462  —  1/12/40  4.50% (1 month USD-LIBOR)  Synthetic MBX Index 4.50%  890 
        30 year Fannie Mae pools   
235,927  —  1/12/41  5.00% (1 month USD-LIBOR)  Synthetic MBX Index 5.00%  2,224 
        30 year Fannie Mae pools   
115,712  —  1/12/41  5.00% (1 month USD-LIBOR)  Synthetic MBX Index 5.00%  1,091 
        30 year Fannie Mae pools   
20,049  —  1/12/40  5.00% (1 month USD-LIBOR)  Synthetic MBX Index 5.00%  183 
        30 year Fannie Mae pools   
65,082  —  1/12/40  5.00% (1 month USD-LIBOR)  Synthetic MBX Index 5.00%  593 
        30 year Fannie Mae pools   
47,192  —  1/12/40  5.00% (1 month USD-LIBOR)  Synthetic MBX Index 5.00%  430 
        30 year Fannie Mae pools   
56,382  —  1/12/38  (6.50%) 1 month USD-LIBOR  Synthetic MBX Index 6.50%  (329) 
        30 year Fannie Mae pools   
10,239  —  1/12/39  (5.50%) 1 month USD-LIBOR  Synthetic MBX Index 5.50%  (80) 
        30 year Fannie Mae pools   
5,073  —  1/12/39  (5.50%) 1 month USD-LIBOR  Synthetic MBX Index 5.50%  (40) 
        30 year Fannie Mae pools   
5,073  —  1/12/39  (5.50%) 1 month USD-LIBOR  Synthetic MBX Index 5.50%  (40) 
        30 year Fannie Mae pools   
10,239  —  1/12/39  (5.50%) 1 month USD-LIBOR  Synthetic MBX Index 5.50%  (80) 
        30 year Fannie Mae pools   
26,678  —  1/12/39  (5.50%) 1 month USD-LIBOR  Synthetic MBX Index 5.50%  (208) 
        30 year Fannie Mae pools   
10,239  —  1/12/39  (5.50%) 1 month USD-LIBOR  Synthetic MBX Index 5.50%  (80) 
        30 year Fannie Mae pools   

 

Putnam VT Global Asset Allocation Fund  31 

 


OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 6/30/14 (Unaudited) cont.

    Upfront    Payments  Total return  Unrealized 
Swap counterparty/  premium  Termination  received (paid) by  received by or  appreciation/ 
Notional amount  received (paid)  date  fund per annum  paid by fund  (depreciation) 
Barclays Bank PLC cont.           
  $276,670  $—  1/12/41  4.00% (1 month USD-LIBOR)  Synthetic TRS Index 4.00%  $(156) 
          30 year Fannie Mae pools   
  9,005  —  1/12/41  5.00% (1 month USD-LIBOR)  Synthetic MBX Index 5.00%  85 
          30 year Ginnie Mae II pools   
  20,478  —  1/12/39  (5.50%) 1 month USD-LIBOR  Synthetic MBX Index 5.50%  (160) 
          30 year Fannie Mae pools   
  76,541  —  1/12/41  (5.00%) 1 month USD-LIBOR  Synthetic TRS Index 5.00%  (272) 
          30 year Fannie Mae pools   
Citibank, N.A.             
  45,474  —  1/12/41  5.00% (1 month USD-LIBOR)  Synthetic MBX Index 5.00%  429 
          30 year Fannie Mae pools   
baskets  71  —  12/19/14  (3 month USD-LIBOR-BBA plus  A basket (CGPUTQL2) of  3,340 
        0.15%)  common stocks   
units  1,554  —  12/19/14  3 month USD-LIBOR-BBA minus  Russell 1000 Total Return  (10,871) 
        0.10%  Index   
Credit Suisse International           
  $380,987  —  1/12/41  4.50% (1 month USD-LIBOR)  Synthetic MBX Index 4.50%  3,014 
          30 year Ginnie Mae II pools   
  262,541  —  1/12/41  4.00% (1 month USD-LIBOR)  Synthetic TRS Index 4.00%  (148) 
          30 year Fannie Mae pools   
Goldman Sachs International           
  44,795  —  1/12/42  4.00% (1 month USD-LIBOR)  Synthetic TRS Index 4.00%  (25) 
          30 year Fannie Mae pools   
  44,795  —  1/12/42  4.00% (1 month USD-LIBOR)  Synthetic TRS Index 4.00%  (25) 
          30 year Fannie Mae pools   
  11,851  —  1/12/41  4.00% (1 month USD-LIBOR)  Synthetic TRS Index 4.00%  (7) 
          30 year Fannie Mae pools   
  228,516  —  1/12/40  4.00% (1 month USD-LIBOR)  Synthetic TRS Index 4.00%  (486) 
          30 year Fannie Mae pools   
  420,703  —  1/12/41  4.00% (1 month USD-LIBOR)  Synthetic TRS Index 4.00%  (238) 
          30 year Fannie Mae pools   
  52,265  —  1/12/41  (4.50%) 1 month USD-LIBOR  Synthetic TRS Index 4.50%  8 
          30 year Fannie Mae pools   
JPMorgan Chase Bank N.A.           
  52,265  —  1/12/41  4.50% (1 month USD-LIBOR)  Synthetic TRS Index 4.50%  (10) 
          30 year Fannie Mae pools   
Total    $—        $(1,155) 

 

OTC CREDIT DEFAULT CONTRACTS OUTSTANDING at 6/30/14 (Unaudited)

 

          Payments  Unrealized 
Swap counterparty/    Upfront premium  Notional  Termination  received (paid) by  appreciation/ 
Referenced debt*  Rating***  received (paid)**  amount  date  fund per annum  (depreciation) 
Bank of America N.A.             
CMBX NA BBB– Index  BBB–/P  $912  $16,000  5/11/63  300 bp  $1,214 
CMBX NA BBB– Index  BBB–/P  926  15,000  5/11/63  300 bp  1,210 
CMBX NA BBB– Index  BBB–/P  482  8,000  5/11/63  300 bp  633 
CMBX NA BBB– Index  BBB–/P  273  4,000  5/11/63  300 bp  349 
Barclays Bank PLC             
CMBX NA BBB– Index  BBB–/P  1,219  11,000  5/11/63  300 bp  1,427 
Credit Suisse International             
CMBX NA BBB– Index  BBB–/P  1,108  27,000  5/11/63  300 bp  1,618 
CMBX NA BBB– Index  BBB–/P  1,686  22,000  5/11/63  300 bp  2,102 
CMBX NA BBB– Index  BBB–/P  1,093  15,000  5/11/63  300 bp  1,376 
CMBX NA BBB– Index  BBB–/P  1,118  14,000  5/11/63  300 bp  1,382 

 

32  Putnam VT Global Asset Allocation Fund 

 


OTC CREDIT DEFAULT CONTRACTS OUTSTANDING at 6/30/14 (Unaudited) cont.

          Payments  Unrealized 
Swap counterparty/    Upfront premium  Notional  Termination  received (paid) by  appreciation/ 
Referenced debt*  Rating***  received (paid)**  amount  date  fund per annum  (depreciation) 
Credit Suisse International cont.             
CMBX NA BBB– Index  BBB–/P  $426  $14,000  5/11/63  300 bp  $691 
CMBX NA BBB– Index  BBB–/P  215  14,000  5/11/63  300 bp  480 
CMBX NA BBB– Index  BBB–/P  247  14,000  5/11/63  300 bp  511 
CMBX NA BBB– Index  BBB–/P  1,469  13,000  5/11/63  300 bp  1,715 
CMBX NA BBB– Index  BBB–/P  1,007  13,000  5/11/63  300 bp  1,252 
CMBX NA BBB– Index  BBB–/P  855  13,000  5/11/63  300 bp  1,101 
CMBX NA BBB– Index  BBB–/P  796  10,000  5/11/63  300 bp  985 
CMBX NA BBB– Index  BBB–/P  62  8,000  5/11/63  300 bp  213 
CMBX NA BBB– Index  BBB–/P  93  8,000  5/11/63  300 bp  244 
CMBX NA BBB– Index  BBB–/P  19  1,000  5/11/63  300 bp  38 
CMBX NA BB Index  —  80  4,000  5/11/63  (500 bp)  (19) 
CMBX NA BB Index  —  (46)  6,000  5/11/63  (500 bp)  (194) 
CMBX NA BB Index  —  (57)  6,000  5/11/63  (500 bp)  (206) 
CMBX NA BB Index  —  (55)  6,000  5/11/63  (500 bp)  (203) 
CMBX NA BB Index  —  108  7,000  5/11/63  (500 bp)  (65) 
CMBX NA BB Index  —  211  8,000  5/11/63  (500 bp)  13 
CMBX NA BB Index  —  (210)  12,000  5/11/63  (500 bp)  (506) 
CMBX NA BB Index  —  (89)  17,000  5/11/63  (500 bp)  (509) 
CMBX NA BB Index  —  (233)  12,000  5/11/63  (500 bp)  (530) 
CMBX NA BBB– Index  BBB–/P  (445)  23,000  5/11/63  300 bp  (11) 
CMBX NA BBB– Index  BBB–/P  1,811  17,000  5/11/63  300 bp  2,133 
CMBX NA BBB– Index  BBB–/P  605  14,000  5/11/63  300 bp  869 
CMBX NA BBB– Index  BBB–/P  309  13,000  5/11/63  300 bp  555 
CMBX NA BBB– Index  BBB–/P  (217)  12,000  5/11/63  300 bp  10 
CMBX NA BBB– Index  BBB–/P  8  12,000  5/11/63  300 bp  235 
CMBX NA BBB– Index  BBB–/P  42  12,000  5/11/63  300 bp  268 
CMBX NA BBB– Index  BBB–/P  526  11,000  5/11/63  300 bp  734 
CMBX NA BBB– Index  —  (657)  14,000  1/17/47  (300 bp)  (677) 
CMBX NA BBB– Index  —  (791)  14,000  1/17/47  (300 bp)  (811) 
Goldman Sachs International             
CMBX NA BB Index  —  90  4,000  5/11/63  (500 bp)  (8) 
CMBX NA BB Index  —  (58)  6,000  5/11/63  (500 bp)  (206) 
CMBX NA BBB– Index  BBB–/P  (198)  12,000  5/11/63  300 bp  29 
Total    $14,740        $19,442 

 

*Payments related to the referenced debt are made upon a credit default event.

**Upfront premium is based on the difference between the original spread on issue and the market spread on day of execution.

***Ratings are presented for credit default contracts in which the fund has sold protection on the underlying referenced debt. Ratings for an underlying index represent the average of the ratings of all the securities included in that index. The Moody’s, Standard & Poor’s or Fitch ratings are believed to be the most recent ratings available at June 30, 2014. Securities rated by Putnam are indicated by “/P.”

Putnam VT Global Asset Allocation Fund  33 

 


CENTRALLY CLEARED CREDIT DEFAULT CONTRACTS OUTSTANDING at 6/30/14 (Unaudited)

          Payments  Unrealized 
    Upfront premium  Notional  Termination  received (paid) by  appreciation/ 
Referenced debt*  Rating***  received (paid)**  amount  Date  fund per annum  (depreciation) 
NA IG Series 22 Index  BBB+/P  $(35,164)  $1,900,000  6/20/19  100 bp  $2,917 
NA IG Series 22 Index  BBB+/P  (10,615)  750,000  6/20/19  100 bp  4,417 
NA HY Series 22 Index  B+/P  (458,350)  5,266,800  6/20/19  500 bp  5,791 
NA HY Series 22 Index  B+/P  (286,235)  3,989,700  6/20/19  500 bp  65,361 
NA HY Series 22 Index  B+/P  (329,587)  4,618,350  6/20/19  500 bp  77,409 
NA IG Series 22 Index  BBB+/P  (4,129)  250,000  6/20/19  100 bp  882 
NA HY Series 22 Index  B+/P  (80,669)  1,108,800  6/20/19  500 bp  17,043 
Total    $(1,204,749)        $173,820 

 

*Payments related to the referenced debt are made upon a credit default event.

**Upfront premium is based on the difference between the original spread on issue and the market spread on day of execution.

***Ratings are presented for credit default contracts in which the fund has sold protection on the underlying referenced debt. Ratings for an underlying index represent the average of the ratings of all the securities included in that index. The Moody’s, Standard & Poor’s or Fitch ratings are believed to be the most recent ratings available at June 30, 2014. Securities rated by Putnam are indicated by “/P.”

ASC 820 establishes a three-level hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of the fund’s investments. The three levels are defined as follows:

Level 1: Valuations based on quoted prices for identical securities in active markets.

Level 2: Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3: Valuations based on inputs that are unobservable and significant to the fair value measurement.

The following is a summary of the inputs used to value the fund’s net assets as of the close of the reporting period:

    Valuation inputs   
Investments in securities:  Level 1  Level 2  Level 3 
Common stocks*:       
Basic materials  $5,417,709  $—  $2,899 
Capital goods  8,531,394  —  — 
Communication services  4,338,400  —  — 
Conglomerates  1,576,760  —  — 
Consumer cyclicals  12,733,027  —  — 
Consumer staples  8,444,276  —  645 
Energy  9,223,110  —  498 
Financials  22,257,806  —  19,184 
Health care  14,457,385  —  — 
Technology  16,414,910  —  — 
Transportation  2,206,424  —  — 
Utilities and power  4,260,497  —  — 
Total common stocks  109,861,698  —  23,226 
Convertible bonds and notes  —  35,969  — 
Convertible preferred stocks  26,076  29,420  — 
Corporate bonds and notes  —  33,156,702  1 
Foreign government and agency bonds and notes  —  1,372,182  — 
Investment companies  46,161  —  — 
Mortgage-backed securities  —  6,239,267  — 
Municipal bonds and notes  —  20,388  — 
Preferred stocks  109,577  115,790  — 
Senior loans  —  455,141  — 
U.S. government and agency mortgage obligations  —  23,459,910  — 
Warrants  —  —  — 
Short-term investments  35,337,188  7,063,377  — 
Totals by level  $145,380,700  $71,948,146  $23,227 

 

34  Putnam VT Global As set Allocation Fund 

 


    Valuation inputs   
Other financial instruments:  Level 1  Level 2  Level 3 
Forward currency contracts  $—  $(180,476)  $— 
Futures contracts  308,491  —  — 
Written swap options outstanding  —  (39,131)  — 
Interest rate swap contracts  —  (234,022)  — 
Total return swap contracts  —  (1,155)  — 
Credit default contracts  —  1,383,271  — 
Totals by level  $308,491  $928,487  $— 

 

* Common stock classifications are presented at the sector level, which may differ from the fund’s portfolio presentation.

At the start and close of the reporting period, Level 3 investments in securities were not considered a significant portion of the fund’s portfolio.

The accompanying notes are an integral part of these financial statements.

Putnam VT Global Asset Allocation Fund  35 

 


Statement of assets and liabilities
6/30/14 (Unaudited)

Assets   
Investment in securities, at value, including $3,622,829 of securities on loan (Note 1):   
Unaffiliated issuers (identified cost $155,769,054)  $178,423,089 
Affiliated issuers (identified cost $38,928,984) (Notes 1 and 5)  38,928,984 
Cash  26,543 
Foreign currency (cost $20,865) (Note 1)  21,033 
Dividends, interest and other receivables  850,953 
Receivable for shares of the fund sold  2,147 
Receivable for investments sold  3,993,174 
Receivable for variation margin (Note 1)  60,227 
Unrealized appreciation on forward currency contracts (Note 1)  353,253 
Unrealized appreciation on OTC swap contracts (Note 1)  35,822 
Premium paid on OTC swap contracts (Note 1)  3,056 
Total assets  222,698,281 
 
Liabilities   
Payable for investments purchased  324,084 
Payable for purchases of delayed delivery securities (Note 1)  25,326,578 
Payable for shares of the fund repurchased  406,561 
Payable for compensation of Manager (Note 2)  93,658 
Payable for custodian fees (Note 2)  27,974 
Payable for investor servicing fees (Note 2)  30,042 
Payable for Trustee compensation and expenses (Note 2)  131,647 
Payable for administrative services (Note 2)  312 
Payable for distribution fees (Note 2)  11,100 
Payable for variation margin (Note 1)  80,066 
Unrealized depreciation on OTC swap contracts (Note 1)  17,535 
Premium received on OTC swap contracts (Note 1)  17,796 
Unrealized depreciation on forward currency contracts (Note 1)  533,729 
Written options outstanding, at value (premiums $38,821) (Notes 1 and 3)  39,131 
Collateral on securities loaned, at value (Note 1)  3,711,796 
Collateral on certain derivative contracts, at value (Note 1)  120,000 
Other accrued expenses  87,928 
Total liabilities  30,959,937 
 
Net assets  $191,738,344 
 
Represented by   
Paid-in capital (Unlimited shares authorized) (Notes 1 and 4)  $157,888,942 
Undistributed net investment income (Note 1)  952,790 
Accumulated net realized gain on investments and foreign currency transactions (Note 1)  9,966,556 
Net unrealized appreciation of investments and assets and liabilities in foreign currencies  22,930,056 
Total — Representing net assets applicable to capital shares outstanding  $191,738,344 
 
Computation of net asset value Class IA   
Net assets  $136,951,804 
Number of shares outstanding  7,363,156 
Net asset value, offering price and redemption price per share (net assets divided by number of shares outstanding)  $18.60 
 
Computation of net asset value Class IB   
Net assets  $54,786,540 
Number of shares outstanding  2,921,229 
Net asset value, offering price and redemption price per share (net assets divided by number of shares outstanding)  $18.75 

 

The accompanying notes are an integral part of these financial statements.

36  Putnam VT Global Asset Allocation Fund 

 


Statement of operations
Six months ended 6/30/14 (Unaudited)

Investment income   
Interest (including interest income of $11,252 from investments in affiliated issuers) (Note 5)  $1,429,860 
Dividends (net of foreign tax of $37,179)  1,310,637 
Securities lending (Note 1)  10,863 
Total investment income  2,751,360 
 
Expenses   
Compensation of Manager (Note 2)  567,041 
Investor servicing fees (Note 2)  96,557 
Custodian fees (Note 2)  52,487 
Trustee compensation and expenses (Note 2)  6,241 
Distribution fees (Note 2)  69,342 
Administrative services (Note 2)  1,986 
Auditing and tax fees  58,944 
Other  39,640 
Total expenses  892,238 
 
Expense reduction (Note 2)  (2,416) 
Net expenses  889,822 
 
Net investment income  1,861,538 
 
Net realized gain on investments (Notes 1 and 3)  10,212,746 
Net realized gain on swap contracts (Note 1)  407,162 
Net realized gain on futures contracts (Note 1)  1,214,723 
Net realized loss on foreign currency transactions (Note 1)  (106,416) 
Net unrealized depreciation of assets and liabilities in foreign currencies during the period  (243,825) 
Net unrealized depreciation of investments, futures contracts, swap contracts, written options, and TBA sale commitments during the period  (1,862,914) 
Net gain on investments  9,621,476 
 
Net increase in net assets resulting from operations  $11,483,014 

 

The accompanying notes are an integral part of these financial statements.

Putnam VT Global Asset Allocation Fund  37 

 


Statement of changes in net assets

  Six months ended  Year ended 
  6/30/14*  12/31/13 
Decrease in net assets     
Operations:     
Net investment income  $1,861,538  $3,572,419 
Net realized gain on investments and foreign currency transactions  11,728,215  23,026,121 
Net unrealized appreciation (depreciation) of investments and assets and liabilities in foreign currencies  (2,106,739)  10,042,238 
Net increase in net assets resulting from operations  11,483,014  36,640,778 
Distributions to shareholders (Note 1):     
From ordinary income     
Net investment income     
Class IA  (3,614,111)  (2,960,266) 
Class IB  (1,320,005)  (1,371,786) 
From net realized long-term gain on investments     
Class IA  (5,485,451)  — 
Class IB  (2,257,825)  — 
Decrease from capital share transactions (Note 4)  (4,795,236)  (41,988,863) 
Total decrease in net assets  (5,989,614)  (9,680,137) 
Net assets:     
Beginning of period  197,727,958  207,408,095 
End of period (including undistributed net investment income of $952,790 and $4,025,368, respectively)  $191,738,344  $197,727,958 

 

* Unaudited.

The accompanying notes are an integral part of these financial statements.

38  Putnam VT Global Asset Allocation Fund 

 


Financial highlights (For a common share outstanding throughout the period)

INVESTMENT OPERATIONS:      LESS DISTRIBUTIONS:        RATIOS AND SUPPLEMENTAL DATA:   
Period ended Net asset value, beginning of period Net investment income (loss)a Net realized and unrealized gain (loss) on investments Total from investment operations From net investment income From net realized gain on investments Total distributions Net asset value, end of period Total return at net asset value (%)b,c Net assets, end of period (in thousands) Ratio of expenses to average net assets (%)b,d Ratio of net investment income (loss) to average net assets (%) Portfolio turnover (%)e
Class IA                           
6/30/14†  $18.77  .18  .93  1.11  (.51)  (.77)  (1.28)  $18.60  6.17*  $136,952  .43*  1.00*  74* 
12/31/13  16.01  .31  2.81  3.12  (.36)  —  (.36)  18.77  19.78  139,872  .89  1.82  164 
12/31/12  14.11  .34  1.71  2.05  (.15)  —  (.15)  16.01  14.58  135,792  .89  2.20  200 
12/31/11  14.79  .33  (.33)  —f  (.68)  —  (.68)  14.11  (.18)  138,271  .88  2.27  131 
12/31/10  13.64  .38  1.59  1.97  (.82)  —  (.82)  14.79  14.95  159,677  .87g  2.75  159 
12/31/09  10.87  .41  3.12  3.53  (.76)  —  (.76)  13.64  35.36  160,419  .99h,i  3.55h  178 
Class IB                           
6/30/14†  $18.88  .16  .93  1.09  (.45)  (.77)  (1.22)  $18.75  6.03*  $54,787  .55*  .87*  74* 
12/31/13  16.10  .27  2.83  3.10  (.32)  —  (.32)  18.88  19.49  57,856  1.14  1.58  164 
12/31/12  14.20  .30  1.71  2.01  (.11)  —  (.11)  16.10  14.20  71,616  1.14  1.96  200 
12/31/11  14.88  .29  (.32)  (.03)  (.65)  —  (.65)  14.20  (.42)  70,624  1.13  2.02  131 
12/31/10  13.72  .35  1.60  1.95  (.79)  —  (.79)  14.88  14.69  79,537  1.12g  2.50  159 
12/31/09  10.90  .39  3.15  3.54  (.72)  —  (.72)  13.72  35.21  76,413  1.24h,i  3.28h  178 

 

* Not annualized.

† Unaudited.

a Per share net investment income (loss) has been determined on the basis of weighted average number of shares outstanding during the period.

b The charges and expenses at the insurance company separate account level are not reflected.

c Total return assumes dividend reinvestment.

d Includes amounts paid through expense offset and/or brokerage/service arrangements, if any (Note 2). Also excludes acquired fund fees and expenses, if any.

e Portfolio turnover excludes TBA purchase and sale transactions.

f Amount represents less than $0.01 per share.

g Excludes the impact of a reduction to interest expense related to the resolution of certain terminated derivatives contracts, which amounted to 0.05% of average net assets for the period ended December 31, 2010.

h Reflects an involuntary contractual expense limitation in effect during the period. As a result of such limitation, the expenses of each class reflect a reduction of 0.10% of average net assets.

i Includes interest accrued in connection with certain derivatives contracts, which amounted to 0.13% of average net assets as of December 31, 2009.

The accompanying notes are an integral part of these financial statements.

Putnam VT Global Asset Allocation Fund  39 

 


Notes to financial statements 6/30/14 (Unaudited)

Within the following Notes to financial statements, references to “State Street” represent State Street Bank and Trust Company, references to “the SEC” represent the Securities and Exchange Commission, references to “Putnam Management” represent Putnam Investment Management, LLC, the fund’s manager, an indirect wholly-owned subsidiary of Putnam Investments, LLC and references to “OTC”, if any, represent over-the-counter. Unless otherwise noted, the “reporting period” represents the period from January 1, 2014 through June 30, 2014.

Putnam VT Global Asset Allocation Fund (the fund) is a diversified series of Putnam Variable Trust (the Trust), a Massachusetts business trust registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The investment objective of the fund is to seek long-term return consistent with preservation of capital. The fund invests a majority of its assets in a diversified portfolio of equity securities (growth or value stocks or both) of both U.S. and foreign companies of any size. Putnam Management may consider, among other factors, a company’s valuation, financial strength, growth potential, competitive position in its industry, projected future earnings, cash flows and dividends when deciding whether to buy or sell equity investments. The fund also invests in a diversified portfolio of fixed income investments, including both U.S. and foreign government obligations, corporate obligations and securitized debt instruments (such as mortgage-backed investments). Putnam Management may consider, among other factors, credit, interest rate and prepayment risks, as well as general market conditions, when deciding whether to buy or sell fixed income investments. Putnam Management may also select other investments that do not fall within these asset classes.

The fund offers class IA and class IB shares of beneficial interest. Class IA shares are offered at net asset value and are not subject to a distribution fee. Class IB shares are offered at net asset value and pay an ongoing distribution fee, which is identified in Note 2.

In the normal course of business, the fund enters into contracts that may include agreements to indemnify another party under given circumstances. The fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be, but have not yet been, made against the fund. However, the fund’s management team expects the risk of material loss to be remote.

Note 1 — Significant accounting policies

The following is a summary of significant accounting policies consistently followed by the fund in the preparation of its financial statements. The preparation of financial statements is in conformity with accounting principles generally accepted in the United States of America and requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and the reported amounts of increases and decreases in net assets from operations. Actual results could differ from those estimates. Subsequent events after the Statement of assets and liabilities date through the date that the financial statements were issued have been evaluated in the preparation of the financial statements.

Investment income, realized and unrealized gains and losses and expenses of the fund are borne pro-rata based on the relative net assets of each class to the total net assets of the fund, except that each class bears expenses unique to that class (including the distribution fees applicable to such classes). Each class votes as a class only with respect to its own distribution plan or other matters on which a class vote is required by law or determined by the Trustees. If the fund were liquidated, shares of each class would receive their pro-rata share of the net assets of the fund. In addition, the Trustees declare separate dividends on each class of shares.

Security valuation Investments for which market quotations are readily available are valued at the last reported sales price on their principal exchange, or official closing price for certain markets, and are classified as Level 1 securities under Accounting Standards Codification 820 Fair Value Measurements and Disclosures (ASC 820). If no sales are reported, as in the case of some securities that are traded OTC, a security is valued at its last reported bid price and is generally categorized as a Level 2 security.

Investments in open-end investment companies (excluding exchange traded funds), if any, which can be classified as Level 1 or Level 2 securities, are valued based on their net asset value. The net asset value of such investment companies equals the total value of their assets less their liabilities and divided by the number of their outstanding shares.

Market quotations are not considered to be readily available for certain debt obligations and other investments; such investments are valued on the basis of valuations furnished by an independent pricing service approved by the Trustees or dealers selected by Putnam Management. Such services or dealers determine valuations for normal institutional-size trading units of such securities using methods based on market transactions for comparable securities and various relationships, generally recognized by institutional traders, between securities (which consider such factors as security prices, yields, maturities and ratings). These securities will generally be categorized as Level 2. Short-term securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value and are classified as Level 2 securities.

Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore the closing prices for securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the close of the New York Stock Exchange. Accordingly, on certain days, the fund will fair value foreign equity securities taking into account multiple factors including movements in the U.S. securities markets, currency valuations and comparisons to the valuation of American Depository Receipts, exchange-traded funds and futures contracts. These securities, which would generally be classified as Level 1 securities, will be transferred to Level 2 of the fair value hierarchy when they are valued at fair value. The number of days on which fair value prices will be used will depend on market activity and it is possible that fair value prices will be used by the fund to a significant extent. Securities quoted in foreign currencies, if any, are translated into U.S. dollars at the current exchange rate.

To the extent a pricing service or dealer is unable to value a security or provides a valuation that Putnam Management does not believe accurately reflects the security’s fair value, the security will be valued at fair value by Putnam Management in accordance with policies and procedures approved by the Trustees. Certain investments, including certain restricted and illiquid securities and derivatives, are also valued at fair value following procedures approved by the Trustees. These valuations consider such factors as significant market or specific security events such as interest rate or credit quality changes, various relationships with other securities, discount rates, U.S. Treasury, U.S. swap and credit yields, index levels, convexity exposures and recovery rates. These securities are classified as Level 2 or as Level 3 depending on the priority of the significant inputs.

Such valuations and procedures are reviewed periodically by the Trustees. Certain securities may be valued on the basis of a price provided by a single source. The fair value of securities is generally determined as the amount that the fund could reasonably expect to realize from an orderly disposition of such securities over a reasonable period of time. By its nature, a fair value price is a good faith estimate of the value of a security in a current sale and does not reflect an actual market price, which may be different by a material amount.

Security transactions and related investment income Security transactions are recorded on the trade date (the date the order to buy or sell is executed). Gains or losses on securities sold are determined on the identified cost basis.

Interest income, net of any applicable withholding taxes, is recorded on the accrual basis. Dividend income, net of any applicable withholding taxes, is recognized on the ex-dividend date except that certain dividends from foreign securities, if any, are recognized as soon as the fund is informed of the ex-dividend date. Non-cash dividends, if any, are recorded at the fair value of the securities received. Dividends representing a return of capital or capital gains, if any, are reflected as a reduction of cost and/or as a realized gain.

All premiums/discounts are amortized/accreted on a yield-to-maturity basis.

The fund earned certain fees in connection with its senior loan purchasing activities. These fees are treated as market discount and are amortized into income in the Statement of operations.

Securities purchased or sold on a delayed delivery basis may be settled at a future date beyond customary settlement time; interest income is accrued based on the terms of the securities. Losses may arise due to changes in the

40  Putnam VT Global Asset Allocation Fund 

 


fair value of the underlying securities or if the counterparty does not perform under the contract.

Stripped securities The fund may invest in stripped securities which represent a participation in securities that may be structured in classes with rights to receive different portions of the interest and principal. Interest-only securities receive all of the interest and principal-only securities receive all of the principal. If the interest-only securities experience greater than anticipated prepayments of principal, the fund may fail to recoup fully its initial investment in these securities. Conversely, principal-only securities increase in value if prepayments are greater than anticipated and decline if prepayments are slower than anticipated. The fair value of these securities is highly sensitive to changes in interest rates.

Foreign currency translation The accounting records of the fund are maintained in U.S. dollars. The fair value of foreign securities, currency holdings, and other assets and liabilities is recorded in the books and records of the fund after translation to U.S. dollars based on the exchange rates on that day. The cost of each security is determined using historical exchange rates. Income and withholding taxes are translated at prevailing exchange rates when earned or incurred. The fund does not isolate that portion of realized or unrealized gains or losses resulting from changes in the foreign exchange rate on investments from fluctuations arising from changes in the market prices of the securities. Such gains and losses are included with the net realized and unrealized gain or loss on investments. Net realized gains and losses on foreign currency transactions represent net realized exchange gains or losses on closed forward currency contracts, disposition of foreign currencies, currency gains and losses realized between the trade and settlement dates on securities transactions and the difference between the amount of investment income and foreign withholding taxes recorded on the fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized appreciation and depreciation of assets and liabilities in foreign currencies arise from changes in the value of open forward currency contracts and assets and liabilities other than investments at the period end, resulting from changes in the exchange rate.

Options contracts The fund uses options contracts to hedge duration and convexity, to isolate prepayment risk, to gain exposure to interest rates, to hedge against changes in values of securities it owns, owned or expects to own, to hedge prepayment risk, to generate additional income for the portfolio, to enhance the return on a security owned, to enhance the return on securities owned and to manage downside risks.

The potential risk to the fund is that the change in value of options contracts may not correspond to the change in value of the hedged instruments. In addition, losses may arise from changes in the value of the underlying instruments if there is an illiquid secondary market for the contracts, if interest or exchange rates move unexpectedly or if the counterparty to the contract is unable to perform. Realized gains and losses on purchased options are included in realized gains and losses on investment securities. If a written call option is exercised, the premium originally received is recorded as an addition to sales proceeds. If a written put option is exercised, the premium originally received is recorded as a reduction to the cost of investments.

Exchange traded options are valued at the last sale price or, if no sales are reported, the last bid price for purchased options and the last ask price for written options. OTC traded options are valued using prices supplied by dealers.

Options on swaps are similar to options on securities except that the premium paid or received is to buy or grant the right to enter into a previously agreed upon interest rate or credit default contract. Forward premium swap option contracts include premiums that have extended settlement dates. The delayed settlement of the premiums is factored into the daily valuation of the option contracts. In the case of interest rate cap and floor contracts, in return for a premium, ongoing payments between two parties are based on interest rates exceeding a specified rate, in the case of a cap contract, or falling below a specified rate in the case of a floor contract.

Written option contracts outstanding at period end, if any, are listed after the fund’s portfolio.

Futures contracts The fund uses futures contracts to manage exposure to market risk, to hedge prepayment risk, to hedge interest rate risk, to gain exposure to interest rates and to equitize cash.

The potential risk to the fund is that the change in value of futures contracts may not correspond to the change in value of the hedged instruments. In addition, losses may arise from changes in the value of the underlying instruments, if there is an illiquid secondary market for the contracts, if interest or exchange rates move unexpectedly or if the counterparty to the contract is unable to perform. With futures, there is minimal counterparty credit risk to the fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. Risks may exceed amounts recognized on the Statement of assets and liabilities. When the contract is closed, the fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

Futures contracts are valued at the quoted daily settlement prices established by the exchange on which they trade. The fund and the broker agree to exchange an amount of cash equal to the daily fluctuation in the value of the futures contract. Such receipts or payments are known as “variation margin.”

Futures contracts outstanding at period end, if any, are listed after the fund’s portfolio.

Forward currency contracts The fund buys and sells forward currency contracts, which are agreements between two parties to buy and sell currencies at a set price on a future date. These contracts are used to hedge foreign exchange risk and to gain exposure on currency.

The U.S. dollar value of forward currency contracts is determined using current forward currency exchange rates supplied by a quotation service. The fair value of the contract will fluctuate with changes in currency exchange rates. The contract is marked to market daily and the change in fair value is recorded as an unrealized gain or loss. The fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed when the contract matures or by delivery of the currency. The fund could be exposed to risk if the value of the currency changes unfavorably, if the counterparties to the contracts are unable to meet the terms of their contracts or if the fund is unable to enter into a closing position. Risks may exceed amounts recognized on the Statement of assets and liabilities.

Forward currency contracts outstanding at period end, if any, are listed after the fund’s portfolio.

Interest rate swap contracts The fund entered into OTC and/or centrally cleared interest rate swap contracts, which are arrangements between two parties to exchange cash flows based on a notional principal amount, to hedge interest rate risk, to gain exposure on interest rates and to hedge prepayment risk.

An OTC and centrally cleared interest rate swap can be purchased or sold with an upfront premium. For OTC interest rate swap contracts, an upfront payment received by the fund is recorded as a liability on the fund’s books. An upfront payment made by the fund is recorded as an asset on the fund’s books. OTC and centrally cleared interest rate swap contracts are marked to market daily based upon quotations from an independent pricing service or market makers. Any change is recorded as an unrealized gain or loss on OTC interest rate swaps. Daily fluctuations in the value of centrally cleared interest rate swaps are settled through a central clearing agent and are recorded in variation margin on the Statement of assets and liabilities and recorded as unrealized gain or loss. Payments, including upfront premiums, received or made are recorded as realized gains or losses at the reset date or the closing of the contract. Certain OTC and centrally cleared interest rate swap contracts may include extended effective dates. Payments related to these swap contracts are accrued based on the terms of the contract.

The fund could be exposed to credit or market risk due to unfavorable changes in the fluctuation of interest rates or if the counterparty defaults, in the case of OTC interest rate contracts, or the central clearing agency or a clearing member defaults, in the case of centrally cleared interest rate swap contracts, on its respective obligation to perform under the contract. The fund’s maximum risk of loss from counterparty risk or central clearing risk is the fair value of the contract. This risk may be mitigated for OTC interest rate swap contracts by having a master netting arrangement between the fund and the counterparty and for centrally cleared interest rate swap contracts through the daily exchange of variation margin. There is minimal counterparty risk with respect to centrally cleared interest rate swap contracts due to the clearinghouse guarantee fund and other resources that are available in the event of a clearing member default. Risk of loss may exceed amounts recognized on the Statement of assets and liabilities.

OTC and centrally cleared interest rate swap contracts outstanding, including their respective notional amounts at period end, if any, are listed after the fund’s portfolio.

Putnam VT Global Asset Allocation Fund 41 

 


Total return swap contracts The fund entered into OTC total return swap contracts, which are arrangements to exchange a market linked return for a periodic payment, both based on a notional principal amount, to hedge sector exposure, to manage exposure to specific sectors or industries, to gain exposure to specific markets or countries and to gain exposure to specific sectors or industries.

To the extent that the total return of the security, index or other financial measure underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the fund will receive a payment from or make a payment to the counterparty. OTC total return swap contracts are marked to market daily based upon quotations from an independent pricing service or market makers and the change, if any, is recorded as an unrealized gain or loss. Payments received or made are recorded as realized gains or losses. Certain OTC total return swap contracts may include extended effective dates. Payments related to these swap contracts are accrued based on the terms of the contract. The fund could be exposed to credit or market risk due to unfavorable changes in the fluctuation of interest rates or in the price of the underlying security or index, the possibility that there is no liquid market for these agreements or that the counterparty may default on its obligation to perform. The fund’s maximum risk of loss from counterparty risk is the fair value of the contract. This risk may be mitigated by having a master netting arrangement between the fund and the counterparty. Risk of loss may exceed amounts recognized on the Statement of assets and liabilities.

OTC total return swap contracts outstanding, including their respective notional amounts at period end, if any, are listed after the fund’s portfolio.

Credit default contracts The fund entered into OTC and/or centrally cleared credit default contracts to hedge credit risk, to hedge market risk and to gain exposure on individual names and/or baskets of securities.

In OTC and centrally cleared credit default contracts, the protection buyer typically makes a periodic stream of payments to a counterparty, the protection seller, in exchange for the right to receive a contingent payment upon the occurrence of a credit event on the reference obligation or all other equally ranked obligations of the reference entity. Credit events are contract specific but may include bankruptcy, failure to pay, restructuring and obligation acceleration. For OTC credit default contracts, an upfront payment received by the fund is recorded as a liability on the fund’s books. An upfront payment made by the fund is recorded as an asset on the fund’s books. Centrally cleared credit default contracts provide the same rights to the protection buyer and seller except the payments between parties, including upfront premiums, are settled through a central clearing agent through variation margin payments. Upfront and periodic payments received or paid by the fund for OTC and centrally cleared credit default contracts are recorded as realized gains or losses at the reset date or close of the contract. The OTC and centrally cleared credit default contracts are marked to market daily based upon quotations from an independent pricing service or market makers. Any change in value of OTC credit default contracts is recorded as an unrealized gain or loss. Daily fluctuations in the value of centrally cleared credit default contracts are recorded in variation margin on the Statement of assets and liabilities and recorded as unrealized gain or loss. Upon the occurrence of a credit event, the difference between the par value and fair value of the reference obligation, net of any proportional amount of the upfront payment, is recorded as a realized gain or loss.

In addition to bearing the risk that the credit event will occur, the fund could be exposed to market risk due to unfavorable changes in interest rates or in the price of the underlying security or index or the possibility that the fund may be unable to close out its position at the same time or at the same price as if it had purchased the underlying reference obligations. In certain circumstances, the fund may enter into offsetting OTC and centrally cleared credit default contracts which would mitigate its risk of loss. Risks of loss may exceed amounts recognized on the Statement of assets and liabilities. The fund’s maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the fair value of the contract. This risk may be mitigated for OTC credit default contracts by having a master netting arrangement between the fund and the counterparty and for centrally cleared credit default contracts through the daily exchange of variation margin. Counterparty risk is further mitigated with respect to centrally cleared credit default swap contracts due to the clearinghouse guarantee fund and other resources that are available in the event of a clearing member default. Where the fund is a seller of protection, the maximum potential amount of future payments the fund may be required to make is equal to the notional amount.

OTC and centrally cleared credit default contracts outstanding, including their respective notional amounts at period end, if any, are listed after the fund’s portfolio.

Master agreements The fund is a party to ISDA (International Swaps and Derivatives Association, Inc.) Master Agreements that govern OTC derivative and foreign exchange contracts and Master Securities Forward Transaction Agreements that govern transactions involving mortgage backed and other asset backed securities that may result in delayed delivery (Master Agreements) with certain counterparties entered into from time to time. The Master Agreements may contain provisions regarding, among other things, the parties’ general obligations, representations, agreements, collateral requirements, events of default and early termination. With respect to certain counterparties, in accordance with the terms of the Master Agreements, collateral posted to the fund is held in a segregated account by the fund’s custodian and with respect to those amounts which can be sold or repledged, are presented in the fund’s portfolio.

Collateral pledged by the fund is segregated by the fund’s custodian and identified in the fund’s portfolio. Collateral can be in the form of cash or debt securities issued by the U.S. Government or related agencies or other securities as agreed to by the fund and the applicable counterparty. Collateral requirements are determined based on the fund’s net position with each counterparty.

With respect to ISDA Master Agreements, termination events applicable to the fund may occur upon a decline in the fund’s net assets below a specified threshold over a certain period of time. Termination events applicable to counterparties may occur upon a decline in the counterparty’s long-term or short-term credit ratings below a specified level. In each case, upon occurrence, the other party may elect to terminate early and cause settlement of all derivative and foreign exchange contracts outstanding, including the payment of any losses and costs resulting from such early termination, as reasonably determined by the terminating party. Any decision by one or more of the fund’s counterparties to elect early termination could impact the fund’s future derivative activity.

At the close of the reporting period, the fund had a net liability position of $375,933 on open derivative contracts subject to the Master Agreements. There was no collateral posted by the fund at period end for these agreements.

TBA commitments The fund may enter into TBA (to be announced) commitments to purchase securities for a fixed unit price at a future date beyond customary settlement time. Although the unit price and par amount have been established, the actual securities have not been specified. However, it is anticipated that the amount of the commitments will not significantly differ from the principal amount. The fund holds, and maintains until settlement date, cash or high-grade debt obligations in an amount sufficient to meet the purchase price, or the fund may enter into offsetting contracts for the forward sale of other securities it owns. Income on the securities will not be earned until settlement date.

The fund may also enter into TBA sale commitments to hedge its portfolio positions or to sell mortgage-backed securities it owns under delayed delivery arrangements. Proceeds of TBA sale commitments are not received until the contractual settlement date. During the time a TBA sale commitment is outstanding, equivalent deliverable securities, or an offsetting TBA purchase commitment deliverable on or before the sale commitment date, are held as “cover” for the transaction. If the TBA sale commitment is closed through the acquisition of an offsetting TBA purchase commitment, the fund realizes a gain or loss. If the fund delivers securities under the commitment, the fund realizes a gain or a loss from the sale of the securities based upon the unit price established at the date the commitment was entered into.

TBA commitments, which are accounted for as purchase and sale transactions, may be considered securities themselves, and involve a risk of loss due to changes in the value of the security prior to the settlement date as well as the risk that the counterparty to the transaction will not perform. Counterparty risk is mitigated by having a master agreement between the fund and the counterparty.

Unsettled TBA commitments are valued at their fair value according to the procedures described under “Security valuation” above. The contract is marked to market daily and the change in fair value is recorded by the fund as an unrealized gain or loss. Based on market circumstances, Putnam Management will determine whether to take delivery of the underlying securities or to dispose of the TBA commitments prior to settlement. TBA commitments outstanding at period end, if any, are listed after the fund’s portfolio.

42  Putnam VT Global Asset Allocation Fund 

 


Securities lending The fund may lend securities, through its agent, to qualified borrowers in order to earn additional income. The loans are collateralized by cash in an amount at least equal to the fair value of the securities loaned. The fair value of securities loaned is determined daily and any additional required collateral is allocated to the fund on the next business day. The risk of borrower default will be borne by the fund’s agent; the fund will bear the risk of loss with respect to the investment of the cash collateral. Income from securities lending is included in investment income on the Statement of operations. Cash collateral is invested in Putnam Cash Collateral Pool, LLC, a limited liability company managed by an affiliate of Putnam Management. Investments in Putnam Cash Collateral Pool, LLC are valued at its closing net asset value each business day. There are no management fees charged to Putnam Cash Collateral Pool, LLC. At the close of the reporting period, the fund received cash collateral of $3,711,796 and the value of securities loaned amounted to $3,635,637. Certain of these securities were sold prior to the close of the reporting period and are included in Receivable for investments sold on the Statement of assets and liabilities.

Interfund lending The fund, along with other Putnam funds, may participate in an interfund lending program pursuant to an exemptive order issued by the SEC. This program allows the fund to borrow from or lend to other Putnam funds that permit such transactions. Interfund lending transactions are subject to each fund’s investment policies and borrowing and lending limits. Interest earned or paid on the interfund lending transaction will be based on the average of certain current market rates. During the reporting period, the fund did not utilize the program.

Lines of credit The fund participates, along with other Putnam funds, in a $392.5 million ($315 million prior to June 27, 2014) unsecured committed line of credit and a $235.5 million ($185 million prior to June 27, 2014) unsecured uncommitted line of credit, both provided by State Street. Borrowings may be made for temporary or emergency purposes, including the funding of shareholder redemption requests and trade settlements. Interest is charged to the fund based on the fund’s borrowing at a rate equal to the Federal Funds rate plus 1.25% for the committed line of credit and the Federal Funds rate plus 1.30% for the uncommitted line of credit. A closing fee equal to 0.04% (0.02% prior to June 27, 2014) of the committed line of credit and 0.04% ($50,000 prior to June 27, 2014) of the uncommitted line of credit has been paid by the participating funds. In addition, a commitment fee of 0.11% per annum on any unutilized portion of the committed line of credit is allocated to the participating funds based on their relative net assets and paid quarterly. During the reporting period, the fund had no borrowings against these arrangements.

Federal taxes It is the policy of the fund to distribute all of its taxable income within the prescribed time period and otherwise comply with the provisions of the Internal Revenue Code of 1986, as amended (the Code), applicable to regulated investment companies.

The fund is subject to the provisions of Accounting Standards Codification 740 Income Taxes (ASC 740). ASC 740 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The fund did not have a liability to record for any unrecognized tax benefits in the accompanying financial statements. No provision has been made for federal taxes on income, capital gains or unrealized appreciation on securities held nor for excise tax on income and capital gains. Each of the fund’s federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service.

The fund may also be subject to taxes imposed by governments of countries in which it invests. Such taxes are generally based on either income or gains earned or repatriated. The fund accrues and applies such taxes to net investment income, net realized gains and net unrealized gains as income and/or capital gains are earned. In some cases, the fund may be entitled to reclaim all or a portion of such taxes, and such reclaim amounts, if any, are reflected as an asset on the fund’s books. In many cases, however, the fund may not receive such amounts for an extended period of time, depending on the country of investment.

The aggregate identified cost on a tax basis is $195,793,810, resulting in gross unrealized appreciation and depreciation of $23,118,580 and $1,560,317, respectively, or net unrealized appreciation of $21,558,263.

Distributions to shareholders Distributions to shareholders from net investment income are recorded by the fund on the ex-dividend date. Distributions from capital gains, if any, are recorded on the ex-dividend date and paid at least annually. The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Dividend sources are estimated at the time of declaration. Actual results may vary. Any non-taxable return of capital cannot be determined until final tax calculations are completed after the end of the fund’s fiscal year. Reclassifications are made to the fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryovers) under income tax regulations.

Expenses of the Trust Expenses directly charged or attributable to any fund will be paid from the assets of that fund. Generally, expenses of the Trust will be allocated among and charged to the assets of each fund on a basis that the Trustees deem fair and equitable, which may be based on the relative assets of each fund or the nature of the services performed and relative applicability to each fund.

Beneficial interest At the close of the reporting period, insurance companies or their separate accounts were record owners of all but a de minimis number of the shares of the fund. Approximately 46.2% of the fund is owned by accounts of one insurance company.

Note 2 — Management fee, administrative services and other transactions

The fund pays Putnam Management a management fee (based on the fund’s average net assets and computed and paid monthly) at annual rates that may vary based on the average of the aggregate net assets of most open-end funds, as defined in the fund’s management contract, sponsored by Putnam Management. Such annual rates may vary as follows:

0.750%  of the first $5 billion, 
0.700%  of the next $5 billion, 
0.650%  of the next $10 billion, 
0.600%  of the next $10 billion, 
0.550%  of the next $50 billion, 
0.530%  of the next $50 billion, 
0.520%  of the next $100 billion and 
0.515%  of any excess thereafter. 

 

The fund’s shareholders approved the fund’s current management contract with Putnam Management effective February 27, 2014. Shareholders were asked to approve the fund’s management contract following the death on October 8, 2013 of The Honourable Paul G. Desmarais, who had controlled directly and indirectly a majority of the voting shares of Power Corporation of Canada, the ultimate parent company of Putnam Management. The substantive terms of the management contract, including terms relating to fees, are identical to the terms of the fund’s previous management contract and reflect the rates provided in the table above.

Putnam Management has contractually agreed, through June 30, 2015, to waive fees or reimburse the fund’s expenses to the extent necessary to limit the cumulative expenses of the fund, exclusive of brokerage, interest, taxes, investment-related expenses, extraordinary expenses, acquired fund fees and expenses and payments under the fund’s investor servicing contract, investment management contract and distribution plans, on a fiscal year-to-date basis to an annual rate of 0.20% of the fund’s average net assets over such fiscal year-to-date period. During the reporting period, the fund’s expenses were not reduced as a result of this limit.

Putnam Investments Limited (PIL), an affiliate of Putnam Management, is authorized by the Trustees to manage a separate portion of the assets of the fund as determined by Putnam Management from time to time. Putnam Management pays a quarterly sub-management fee to PIL for its services at an annual rate of 0.35% of the average net assets of the portion of the fund managed by PIL.

The Putnam Advisory Company, LLC (PAC), an affiliate of Putnam Management, is authorized by the Trustees to manage a separate portion of the assets of the fund, as designated from time to time by Putnam Management or PIL. Putnam Management or PIL, as applicable, pays a quarterly sub-advisory fee to PAC for its services at the annual rate of 0.35% of the average net assets of the portion of the fund’s assets for which PAC is engaged as sub-adviser.

The fund reimburses Putnam Management an allocated amount for the compensation and related expenses of certain officers of the fund and their staff who provide administrative services to the fund. The aggregate amount of all such reimbursements is determined annually by the Trustees.

Custodial functions for the fund’s assets are provided by State Street. Custody fees are based on the fund’s asset level, the number of its security holdings and transaction volumes.

Putnam VT Global Asset Allocation Fund  43 

 


Putnam Investor Services, Inc., an affiliate of Putnam Management, provides investor servicing agent functions to the fund. Putnam Investor Services, Inc. was paid a monthly fee for investor servicing at an annual rate of 0.10% of the fund’s average net assets. During the reporting period, the expenses for each class of shares related to investor servicing fees were as follows:

Class IA  $68,482 
Class IB  28,075 
Total  $96,557 

 

The fund has entered into expense offset arrangements with Putnam Investor Services, Inc. and State Street whereby Putnam Investor Services, Inc.’s and State Street’s fees are reduced by credits allowed on cash balances. The fund also reduced expenses through brokerage/service arrangements. For the reporting period, the fund’s expenses were not reduced under the expense offset arrangements and were reduced by $2,416 under the brokerage/service arrangements.

Each independent Trustee of the fund receives an annual Trustee fee, of which $118, as a quarterly retainer, has been allocated to the fund, and an additional fee for each Trustees meeting attended. Trustees also are reimbursed for expenses they incur relating to their services as Trustees.

The fund has adopted a Trustee Fee Deferral Plan (the Deferral Plan) which allows the Trustees to defer the receipt of all or a portion of Trustees fees payable on or after July 1, 1995. The deferred fees remain invested in certain Putnam funds until distribution in accordance with the Deferral Plan.

The fund has adopted an unfunded noncontributory defined benefit pension plan (the Pension Plan) covering all Trustees of the fund who have served as a Trustee for at least five years and were first elected prior to 2004. Benefits under the Pension Plan are equal to 50% of the Trustee’s average annual attendance and retainer fees for the three years ended December 31, 2005. The retirement benefit is payable during a Trustee’s lifetime, beginning the year following retirement, for the number of years of service through December 31, 2006. Pension expense for the fund is included in Trustee compensation and expenses in the Statement of operations. Accrued pension liability is included in Payable for Trustee compensation and expenses in the Statement of assets and liabilities. The Trustees have terminated the Pension Plan with respect to any Trustee first elected after 2003.

The fund has adopted a distribution plan (the Plan) with respect to its class IB shares pursuant to Rule 12b-1 under the Investment Company Act of 1940. The purpose of the Plan is to compensate Putnam Retail Management Limited Partnership, an indirect wholly-owned subsidiary of Putnam Investments, LLC, for services provided and expenses incurred in distributing shares of the fund. The Plan provides for payment by the fund to Putnam Retail Management Limited Partnership at an annual rate of up to 0.35% of the average net assets attributable to the fund’s class IB shares. The Trustees have approved payment by the fund at an annual rate of 0.25% of the average net assets attributable to the fund’s class IB shares. During the reporting period, the class specific expenses related to distribution fees were as follows:

Class IB  $69,342 

 

Note 3 — Purchases and sales of securities

During the reporting period, cost of purchases and proceeds from sales of investment securities other than short-term investments aggregated $115,733,396 and $125,523,623, respectively. There were no purchases or proceeds from sales of long-term U.S. government securities.

Written option transactions during the reporting period are summarized as follows:

  Written swap option  Written swap option 
  contract amounts  premiums 
Written options outstanding at the     
beginning of the reporting period  $—  $— 
Options opened  218,000  38,821 
Options exercised  —  — 
Options expired  —  — 
Options closed  —  — 
Written options outstanding at the     
end of the reporting period  $218,000  $38,821 

 

Note 4 — Capital shares

At the close of the reporting period, there was an unlimited number of shares of beneficial interest authorized. Subscriptions and redemptions are presented at the omnibus level. Transactions in capital shares were as follows:

    Class IA shares      Class IB shares   
  Six months ended 6/30/14  Year ended 12/31/13  Six months ended 6/30/14  Year ended 12/31/13 
 
  Shares  Amount  Shares  Amount  Shares  Amount  Shares  Amount 
Shares sold  26,011  $483,326  192,637  $3,280,966  52,377  $987,048  333,058  $5,710,014 
Shares issued in connection with reinvestment                 
of distributions  510,351  9,099,562  177,580  2,960,266  198,879  3,577,830  81,605  1,371,786 
  536,362  9,582,888  370,217  6,241,232  251,256  4,564,878  414,663  7,081,800 
Shares repurchased  (626,232)  (11,600,761)  (1,399,260)  (24,124,962)  (394,502)  (7,342,241)  (1,797,231)  (31,186,933) 
Net decrease  (89,870)  $(2,017,873)  (1,029,043)  $(17,883,730)  (143,246)  $(2,777,363)  (1,382,568)  $(24,105,133) 

 

Note 5 — Affiliated transactions

Transactions during the reporting period with Putnam Short Term Investment Fund, which is under common ownership and control, were as follows:

  Fair value at the beginning of        Fair value at the end of the 
Name of affiliate  the reporting period  Purchase cost  Sale proceeds  Investment income  reporting period 
Putnam Short Term Investment Fund*  $32,144,304  $30,305,069  $27,232,185  $11,252  $35,217,188 
Total  $32,144,304  $30,305,069  $27,232,185  $11,252  $35,217,188 

 

* Management fees charged to Putnam Short Term Investment Fund have been waived by Putnam Management.

Note 6 — Senior loan commitments

Senior loans are purchased or sold on a when-issued or delayed delivery basis and may be settled a month or more after the trade date, which from time to time can delay the actual investment of available cash balances; interest income is accrued based on the terms of the securities. Senior loans can be acquired through an agent, by assignment from another holder of the loan, or as a participation interest in another holder’s portion of the loan. When the fund invests in a loan or participation, the fund is subject to the risk that an intermediate participant between the fund and the borrower will fail to meet its obligations to the fund, in addition to the risk that the borrower under the loan may default on its obligations.

44  Putnam VT Global Asset Allocation Fund 

 


Note 7 — Market, credit and other risks

In the normal course of business, the fund trades financial instruments and enters into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the contracting party to the transaction to perform (credit risk). The fund may be exposed to additional credit risk that an institution or other entity with which the fund has unsettled or open transactions will default. Investments in foreign securities involve certain risks, including those related to economic instability, unfavorable political developments, and currency fluctuations. The fund may invest in higher yielding, lower rated bonds that may have a higher rate of default. The fund may invest a significant portion of its assets in securitized debt instruments, including mortgage-backed and asset-backed investments. The yields and values of these investments are sensitive to changes in interest rates, the rate of principal payments on the underlying assets and the market’s perception of the issuers. The market for these investments may be volatile and limited, which may make them difficult to buy or sell.

Note 8 — Summary of derivative activity

The volume of activity for the reporting period for any derivative type that was held during the period is listed below and was as follows based on an average of the holdings at the end of each fiscal quarter:

Written swap option contracts (contract amount) (Note 3)  $190,000 
Futures contracts (number of contracts)  700 
Forward currency contracts (contract amount)  $83,200,000 
Centrally cleared interest rate swap contracts (notional)  $26,500,000 
OTC total return swap contracts (notional)  $21,900,000 
OTC credit default contracts (notional)  $420,000 
Centrally cleared credit default contracts (notional)  $14,600,000 
Warrants (number of warrants)  8,000 

 

The following is a summary of the fair value of derivative instruments as of the close of the reporting period:

Fair value of derivative instruments as of the close of the reporting period

  Asset derivatives  Liability derivatives 
Derivatives not accounted         
for as hedging instruments  Statement of assets and    Statement of assets and   
under ASC 815  liabilities location  Fair value  liabilities location  Fair value 
Credit contracts  Receivables, Net assets —       
  Unrealized appreciation  $1,385,485*  Payables  $2,214 
Foreign exchange contracts  Receivables  353,253  Payables  533,729 
Equity contracts  Investments, Receivables, Net    Payables, Net assets —   
  assets — Unrealized appreciation  492,905*  Unrealized depreciation  209,486* 
Interest rate contracts  Receivables, Net    Payables, Net assets —   
  assets — Unrealized appreciation  51,589*  Unrealized depreciation  300,825* 
Total    $2,283,232    $1,046,254 

 

* Includes cumulative appreciation/depreciation of futures contracts and centrally cleared swaps as reported in the fund’s portfolio. Only current day’s variation margin is reported within the Statement of assets and liabilities.

The following is a summary of realized and change in unrealized gains or losses of derivative instruments on the Statement of operations for the reporting period (see Note 1):

Amount of realized gain or (loss) on derivatives recognized in net gain or (loss) on investments

Derivatives not accounted for as hedging      Forward currency     
instruments under ASC 815  Warrants  Futures  contracts  Swaps  Total 
Credit contracts  $—  $—  $—  $552,840  $552,840 
Foreign exchange contracts  —  —  (110,379)  —  $(110,379) 
Equity contracts  54  895,932  —  (4,212)  $891,774 
Interest rate contracts  —  318,791  —  (141,466)  $177,325 
Total  $54  $1,214,723  $(110,379)  $407,162  $1,511,560 

 

Change in unrealized appreciation or (depreciation) on derivatives recognized in net gain or (loss) on investments

 

Derivatives not accounted for as hedging        Forward currency     
instruments under ASC 815  Warrants  Options  Futures  contracts  Swaps  Total 
Credit contracts  $—  $—  $—  $—  $(295,509)  $(295,509) 
Foreign exchange contracts  —  —  —  (244,096)  —  $(244,096) 
Equity contracts  —  —  (113,866)  —  (25,616)  $(139,482) 
Interest rate contracts  —  (310)  197,752  —  (86,990)  $110,452 
Total  $—  $(310)  $83,886  $(244,096)  $(408,115)  $(568,635) 

 

Putnam VT Global As set Allocation Fund  45 

 


Note 9 — Offsetting of financial and derivative assets and liabilities

The following table summarizes any derivatives, repurchase agreements and reverse repurchase agreements, at the end of the reporting period, that are subject to an enforceable master netting agreement or similar agreement. For securities lending transactions or borrowing transactions associated with securities sold short, see Note 1, if any. For financial reporting purposes, the fund does not offset financial assets and financial liabilities that are subject to the master netting agreements in the Statement of assets and liabilities.

  Bank of America N.A. Barclays Bank PLC Barclays Capital Inc. (clearing broker) Citibank, N.A. Credit Suisse International Deutsche Bank AG Goldman Sachs International HSBC Bank USA, National Association JPMorgan Chase Bank N.A. Merrill Lynch, Pierce, Fenner & Smith, Inc. State Street Bank and Trust Co. UBS AG WestPac Banking Corp. Total
Assets:                             
Centrally cleared interest rate                             
swap contracts§  $—  $—  $876  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $876 
OTC Total return swap contracts*#  —  5,644  —  3,769  3,014  —  8  —  —  —  —  —  —  12,435 
OTC Credit default contracts*#  813  208  —  —  5,668  —  227  —  —  —  —  —  —  6,916 
Centrally cleared credit default contracts§  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Futures contracts§  —  —  —  —  —  —  —  —  —  59,351  —  —  —  59,351 
Forward currency contracts#  13,927  16,990  —  83,898  4,235  16,283  2,039  3,422  16,448  —  42,550  143,839  9,622  353,253 
Total Assets  $14,740  $22,842  $876  $87,667  $12,917  $16,283  $2,274  $3,422  $16,448  $59,351  $42,550  $143,839  $9,622  $432,831 
Liabilities:                             
Centrally cleared interest rate                             
swap contracts§  —  —  9,883  —  —  —  —  —  —  —  —  —  —  9,883 
OTC Total return swap contracts*#  —  1,780  —  10,871  148  —  781  —  10  —  —  —  —  13,590 
OTC Credit default contracts*#  —  —  —  —  1,968  —  246  —  —  —  —  —  —  2,214 
Centrally cleared credit default contracts§  —  —  22,081  —  —  —  —  —  —  —  —  —  —  22,081 
Futures contracts§  —  —  —  —  —  —  —  —  —  48,102  —  —  —  48,102 
Forward currency contracts#  40,149  139,945  —  47,955  58,447  16,297  6,990  74,377  44,568  —  62,120  12,807  30,074  533,729 
Written swap options #  —  —  —  —  —  —  —  —  39,131  —  —  —  —  39,131 
Total Liabilities  $40,149  $141,725  $31,964  $58,826  $60,563  $16,297  $8,017  $74,377  $83,709  $48,102  $62,120  $12,807  $30,074  $668,730 
Total Financial and Derivative Net Assets  $(25,409)  $(118,883)  $(31,088)  $28,841  $(47,646)  $(14)  $(5,743)  $(70,955)  $(67,261)  $11,249  $(19,570)  $131,032  $(20,452)  $(235,899) 
Total collateral received (pledged)† ##  $—  $—  $—  $28,841  $—  $—  $—  $—  $—  $—  $—  $—  $—   
Net amount  $(25,409)  $(118,883)  $(31,088)  $—  $(47,646)  $(14)  $(5,743)  $(70,955)  $(67,261)  $11,249  $(19,570)  $131,032  $(20,452)   

 

* Excludes premiums, if any. Included in unrealized appreciation and depreciation on OTC swap contracts on the Statement of assets and liabilities.


† Additional collateral may be required from certain brokers based on individual agreements.


# Covered by master netting agreement. (Note 1)


## Any over-collateralization of total financial and derivative net assets is not shown. Collateral may include amounts related to unsettled agreements.


§ Includes current day’s variation margin only as reported on the Statement of assets and liabilities, which is not collateralized. Cumulative appreciation/(depreciation) for futures contracts and centrally cleared swap contracts is represented in the tables listed after the fund’s portfolio.

 

46  Putnam VT Global Asset Allocation Fund  Putnam VT Global Asset Allocation Fund  47 

 


Shareholder meeting results (Unaudited)

February 27, 2014 special meeting

At the meeting, each of the nominees for Trustees was elected, with all funds of the Trust voting together as a single class, as follows:

  Votes for  Votes withheld 
Liaquat Ahamed  545,333,593  24,865,496 
Ravi Akhoury  545,906,178  24,292,911 
Barbara M. Baumann  549,255,821  20,943,268 
Jameson A. Baxter  548,878,213  21,320,877 
Charles B. Curtis  548,266,326  21,932,764 
Robert J. Darretta  548,954,413  21,244,676 
Katinka Domotorffy  547,720,210  22,478,879 
John A. Hill  548,926,132  21,272,957 
Paul L. Joskow  548,318,739  21,880,351 
Kenneth R. Leibler  549,128,017  21,071,073 
Robert E. Patterson  548,989,554  21,209,535 
George Putnam, III  548,805,405  21,393,685 
Robert L. Reynolds  549,170,754  21,028,335 
W. Thomas Stephens  548,523,544  21,675,546 

 

A proposal to approve a new management contract between the fund and Putnam Management was approved as follows:

 

Votes for  Votes against  Abstentions  Broker non-votes 
9,318,582  325,329  751,263  — 

 

A proposal to adopt an Amended and Restated Declaration of Trust was approved, with all funds of the Trust voting together as a single class, as follows:

 

Votes for  Votes against  Abstentions  Broker non-votes 
507,595,281  19,452,349  43,151,459  — 

 

All tabulations are rounded to the nearest whole number.

 

48  Putnam VT Global Asset Allocation Fund 

 


Trustee approval of management contract

General conclusions

The Board of Trustees of the Putnam funds oversees the management of each fund and, as required by law, determines annually whether to approve the continuance of your fund’s management contract with Putnam Investment Management, LLC (“Putnam Management”), the sub-management contract with respect to your fund between Putnam Management and its affiliate, Putnam Investments Limited (“PIL”), and the sub-advisory contract among Putnam Management, PIL, and another affiliate, The Putnam Advisory Company (“PAC”). The Board of Trustees, with the assistance of its Contract Committee, requests and evaluates all information it deems reasonably necessary under the circumstances in connection with its annual contract review. The Contract Committee consists solely of Trustees who are not “interested persons” (as this term is defined in the Investment Company Act of 1940, as amended (the “1940 Act”)) of the Putnam funds (“Independent Trustees”).

At the outset of the review process, members of the Board’s independent staff and independent legal counsel met with representatives of Putnam Management to review the annual contract review materials furnished to the Contract Committee during the course of the previous year’s review and to discuss possible changes in these materials that might be necessary or desirable for the coming year. Following these discussions and in consultation with the Contract Committee, the Independent Trustees’ independent legal counsel requested that Putnam Management furnish specified information, together with any additional information that Putnam Management considered relevant, to the Contract Committee. Over the course of several months ending in June 2014, the Contract Committee met on a number of occasions with representatives of Putnam Management, and separately in executive session, to consider the information that Putnam Management provided, as well as supplemental information provided in response to additional requests made by the Contract Committee. Throughout this process, the Contract Committee was assisted by the members of the Board’s independent staff and by independent legal counsel for the Putnam funds and the Independent Trustees.

In May 2014, the Contract Committee met in executive session to discuss and consider its preliminary recommendations with respect to the continuance of the contracts. At the Trustees’ June 20, 2014 meeting, the Contract Committee met in executive session with the other Independent Trustees to review a summary of the key financial, performance and other data that the Contract Committee considered in the course of its review. The Contract Committee then presented its written report, which summarized the key factors that the Committee had considered and set forth its final recommendations. The Contract Committee then recommended, and the Independent Trustees approved, the continuance of your fund’s management, sub-management and sub-advisory contracts, effective July 1, 2014. (Because PIL and PAC are affiliates of Putnam Management and Putnam Management remains fully responsible for all services provided by PIL and PAC, the Trustees have not attempted to evaluate PIL or PAC as separate entities, and all subsequent references to Putnam Management below should be deemed to include reference to PIL and PAC as necessary or appropriate in the context.)

The Independent Trustees’ approval was based on the following conclusions:

• That the fee schedule in effect for your fund represented reasonable compensation in light of the nature and quality of the services being provided to the fund, the fees paid by competitive funds, and the costs incurred by Putnam Management in providing services to the fund; and

• That the fee schedule in effect for your fund represented an appropriate sharing between fund shareholders and Putnam Management of such economies of scale as may exist in the management of the fund at current asset levels.

These conclusions were based on a comprehensive consideration of all information provided to the Trustees and were not the result of any single factor. Some of the factors that figured particularly in the Trustees’ deliberations and how the Trustees considered these factors are described below, although individual Trustees may have evaluated the information presented differently, giving different weights to various factors. It is also important to recognize that the management arrangements for your fund and the other Putnam funds are the result of many years of review and discussion between the Independent Trustees and Putnam Management, that some aspects of the arrangements may receive greater scrutiny in some years than others, and that the Trustees’ conclusions may be based, in part, on their consideration of fee arrangements in previous years. For example, with some minor exceptions, the current fee arrangements under the management contracts for the Putnam funds were implemented at the beginning of 2010 following extensive review by the Contract Committee and discussions with representatives of Putnam Management, as well as approval by shareholders. Shareholders also voted overwhelmingly to approve these fee arrangements again in early 2014, when they were asked to approve new management contracts (with the same fees and substantially identical other provisions) following the possible termination of the previous management contracts as a result of the death of the Honorable Paul G. Desmarais. (Mr. Desmarais, both directly and through holding companies, controlled a majority of the voting shares of Power Corporation of Canada, which (directly and indirectly) is the majority owner of Putnam Management. Mr. Desmarais’ voting control of shares of Power Corporation of Canada was transferred to The Desmarais Family Residuary Trust upon his death and this transfer, as a technical matter, may have constituted an “assignment” within the meaning of the 1940 Act, causing the Putnam funds’ management contracts to terminate automatically.)

Management fee schedules and total expenses

The Trustees reviewed the management fee schedules in effect for all Putnam funds, including fee levels and breakpoints. The Trustees also reviewed the total expenses of each Putnam fund, recognizing that in most cases management fees represented the major, but not the sole, determinant of total costs to shareholders.

In reviewing fees and expenses, the Trustees generally focus their attention on material changes in circumstances — for example, changes in assets under management, changes in a fund’s investment style, changes in Putnam Management’s operating costs or profitability, or changes in competitive practices in the mutual fund

Putnam VT Global Asset Allocation Fund  49 

 


industry — that suggest that consideration of fee changes might be warranted. The Trustees concluded that the circumstances did not warrant changes to the management fee structure of your fund.

Under its management contract, your fund has the benefit of breakpoints in its management fee schedule that provide shareholders with economies of scale in the form of reduced fee levels as assets under management in the Putnam family of funds increase. The Trustees concluded that the fee schedule in effect for your fund represented an appropriate sharing of economies of scale between fund shareholders and Putnam Management.

As in the past, the Trustees also focused on the competitiveness of each fund’s total expense ratio. In order to ensure that expenses of the Putnam funds continue to meet competitive standards, the Trustees and Putnam Management have implemented certain expense limitations. These expense limitations were: (i) a contractual expense limitation applicable to all retail open-end funds of 32 basis points on investor servicing fees and expenses and (ii) a contractual expense limitation applicable to all open-end funds of 20 basis points on so-called “other expenses” (i.e., all expenses exclusive of management fees, investor servicing fees, distribution fees, investment-related expenses, interest, taxes, brokerage commissions, extraordinary expenses and acquired fund fees and expenses). These expense limitations serve in particular to maintain competitive expense levels for funds with large numbers of small shareholder accounts and funds with relatively small net assets. Most funds, including your fund, had sufficiently low expenses that these expense limitations did not apply. Putnam Management’s support for these expense limitation arrangements was an important factor in the Trustees’ decision to approve the continuance of your fund’s management, sub-management and sub-advisory contracts.

The Trustees reviewed comparative fee and expense information for a custom group of competitive funds selected by Lipper Inc. (“Lipper”). This comparative information included your fund’s percentile ranking for effective management fees and total expenses (excluding any applicable 12b-1 fee), which provides a general indication of your fund’s relative standing. In the custom peer group, your fund ranked in the third quintile in effective management fees (determined for your fund and the other funds in the custom peer group based on fund asset size and the applicable contractual management fee schedule) and in the fourth quintile in total expenses (excluding any applicable 12b-1 fees) as of December 31, 2013 (the first quintile representing the least expensive funds and the fifth quintile the most expensive funds). The fee and expense data reported by Lipper as of December 31, 2013 reflected the most recent fiscal year-end data available in Lipper’s database at that time.

In connection with their review of the management fees and total expenses of the Putnam funds, the Trustees also reviewed the costs of the services provided and the profits realized by Putnam Management and its affiliates from their contractual relationships with the funds. This information included trends in revenues, expenses and profitability of Putnam Management and its affiliates relating to the investment management, investor servicing and distribution services provided to the funds. In this regard, the Trustees also reviewed an analysis of Putnam Management’s revenues, expenses and profitability, allocated on a fund-by-fund basis, with respect to the funds’ management, distribution, and investor servicing contracts. For each fund, the analysis presented information about revenues, expenses and profitability for each of the agreements separately and for the agreements taken together on a combined basis. The Trustees concluded that, at current asset levels, the fee schedules in place represented reasonable compensation for the services being provided and represented an appropriate sharing of such economies of scale as may exist in the management of the Putnam funds at that time.

The information examined by the Trustees as part of their annual contract review for the Putnam funds has included for many years information regarding fees charged by Putnam Management and its affiliates to institutional clients such as defined benefit pension plans, college endowments, and the like. This information included comparisons of those fees with fees charged to the Putnam funds, as well as an assessment of the differences in the services provided to these different types of clients. The Trustees observed that the differences in fee rates between institutional clients and mutual funds are by no means uniform when examined by individual asset sectors, suggesting that differences in the pricing of investment management services to these types of clients may reflect historical competitive forces operating in separate markets. The Trustees considered the fact that in many cases fee rates across different asset classes are higher on average for mutual funds than for institutional clients, as well as the differences between the services that Putnam Management provides to the Putnam funds and those that it provides to its institutional clients. The Trustees did not rely on these comparisons to any significant extent in concluding that the management fees paid by your fund are reasonable.

Investment performance

The quality of the investment process provided by Putnam Management represented a major factor in the Trustees’ evaluation of the quality of services provided by Putnam Management under your fund’s management contract. The Trustees were assisted in their review of the Putnam funds’ investment process and performance by the work of the investment oversight committees of the Trustees, which meet on a regular basis with the funds’ portfolio teams and with the Chief Investment Officer and other senior members of Putnam Management’s Investment Division throughout the year. The Trustees concluded that Putnam Management generally provides a high-quality investment process — based on the experience and skills of the individuals assigned to the management of fund portfolios, the resources made available to them, and in general Putnam Management’s ability to attract and retain high-quality personnel — but also recognized that this does not guarantee favorable investment results for every fund in every time period.

The Trustees considered that 2013 was a year of strong competitive performance for many of the Putnam funds, with only a relatively small number of exceptions. They noted that this strong performance was exemplified by the fact that the Putnam funds were recognized by Barron’s as the second-best performing mutual fund complex for both 2013 and the five-year period ended December 31, 2013. They also noted, however, the disappointing investment performance of some funds for periods ended December 31, 2013 and considered information provided by Putnam Management regarding the factors contributing to the underperformance and actions being taken to improve the performance of these particular funds. The Trustees indicated their intention to continue to monitor performance trends to assess the effectiveness of these efforts and to evaluate whether additional actions to address areas of underperformance are warranted.

50  Putnam VT Global Asset Allocation Fund 

 


For purposes of evaluating investment performance, the Trustees generally focus on competitive industry rankings for the one-year, three-year and five-year periods. For a number of Putnam funds with relatively unique investment mandates for which meaningful competitive performance rankings are not considered available, the Trustees evaluated performance based on comparisons of their returns with the returns of selected investment benchmarks. In the case of your fund, the Trustees considered that its class IA share cumulative total return performance at net asset value was in the following quartiles of its Lipper peer group (Lipper VP (Underlying Funds) — Mixed-Asset Target Allocation Moderate Funds) for the one-year, three-year and five-year periods ended December 31, 2013 (the first quartile representing the best-performing funds and the fourth quartile the worst-performing funds):

One-year period  Three-year period  Five-year period 
1st  1st  1st 

 

For each of the one-year, three-year and five-year periods ended December 31, 2013, your fund’s performance was in the top decile of its Lipper peer group. Over the one-year, three-year and five-year periods ended December 31, 2013, there were 232, 195 and 168 funds, respectively, in your fund’s Lipper peer group. (When considering performance information, shareholders should be mindful that past performance is not a guarantee of future results.)

Brokerage and soft-dollar allocations; investor servicing

The Trustees considered various potential benefits that Putnam Management may receive in connection with the services it provides under the management contract with your fund. These include benefits related to brokerage allocation and the use of soft dollars, whereby a portion of the commissions paid by a fund for brokerage may be used to acquire research services that are expected to be useful to Putnam Management in managing the assets of the fund and of other clients. Subject to policies established by the Trustees, soft dollars generated by these means are used primarily to acquire brokerage and research services that enhance Putnam Management’s investment capabilities and supplement Putnam Management’s internal research efforts. However, the Trustees noted that a portion of available soft dollars continues to be used to pay fund expenses. The Trustees indicated their continued intent to monitor regulatory and industry developments in this area with the assistance of their Brokerage Committee and also indicated their continued intent to monitor the allocation of the Putnam funds’ brokerage in order to ensure that the principle of seeking best price and execution remains paramount in the portfolio trading process.

Putnam Management may also receive benefits from payments that the funds make to Putnam Management’s affiliates for investor or distribution services. In conjunction with the annual review of your fund’s management, sub-management and sub-advisory contracts, the Trustees reviewed your fund’s investor servicing agreement with Putnam Investor Services, Inc. (“PSERV”) and its distributor’s contracts and distribution plans with Putnam Retail Management Limited Partnership (“PRM”), both of which are affiliates of Putnam Management. The Trustees concluded that the fees payable by the funds to PSERV and PRM, as applicable, for such services are reasonable in relation to the nature and quality of such services, the fees paid by competitive funds, and the costs incurred by PSERV and PRM, as applicable, in providing such services.

Putnam VT Global Asset Allocation Fund  51 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

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52  Putnam VT Global Asset Allocation Fund 

 


Other important information

Proxy voting

Putnam is committed to managing our mutual funds in the best interests of our shareholders. The Putnam funds’ proxy voting guidelines and procedures, as well as information regarding how your fund voted proxies relating to portfolio securities during the 12-month period ended June 30, 2014, are available in the Individual Investors section of putnam.com and on the SEC’s website, www.sec.gov. If you have questions about finding forms on the SEC’s website, you may call the SEC at 1-800-SEC-0330. You may also obtain the Putnam funds’ proxy voting guidelines and procedures at no charge by calling Putnam’s Shareholder Services at 1-800-225-1581.

Fund portfolio holdings

Each Putnam VT fund will file a complete schedule of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Shareholders may obtain the fund’s Forms N-Q on the SEC’s website at www.sec.gov. In addition, the fund’s Forms N-Q may be reviewed and copied at the SEC’s public reference room in Washington, D.C. You may call the SEC at 1-800-SEC-0330 for information about the SEC’s website or the operation of the public reference room.

Fund information

Investment Manager  Investor Servicing Agent  Trustees 
Putnam Investment Management, LLC  Putnam Investor Services, Inc.  Jameson A. Baxter, Chair 
One Post Office Square  Mailing address:  Liaquat Ahamed 
Boston, MA 02109  P.O. Box 8383  Ravi Akhoury 
  Boston, MA 02266-8383  Barbara M. Baumann 
Investment Sub-Manager  1-800-225-1581  Charles B. Curtis 
Putnam Investments Limited    Robert J. Darretta 
57–59 St James’s Street  Custodian  Katinka Domotorffy 
London, England SW1A 1LD  State Street Bank and Trust Company  John A. Hill 
    Paul L. Joskow 
Investment Sub-Advisor  Legal Counsel  Kenneth R. Leibler 
The Putnam Advisory Company, LLC  Ropes & Gray LLP  Robert E. Patterson 
One Post Office Square    George Putnam, III 
Boston, MA 02109    Robert L. Reynolds 
    W. Thomas Stephens 
Marketing Services     
Putnam Retail Management     
One Post Office Square     
Boston, MA 02109     

 

The fund’s Statement of Additional Information contains additional information about the fund’s Trustees and is available without charge upon request by calling 1-800-225-1581.

 

Putnam VT Global Asset Allocation Fund  53 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

     
This report has been prepared for the shareholders    H505 
of Putnam VT Global Asset Allocation Fund.  289198 8/14 

 

Item 2. Code of Ethics:
Not applicable
Item 3. Audit Committee Financial Expert:
Not applicable
Item 4. Principal Accountant Fees and Services:
Not applicable
Item 5. Audit Committee of Listed Registrants
Not applicable
Item 6. Schedule of Investments:
The registrant’s schedule of investments in unaffiliated issuers is included in the report to shareholders in Item 1 above.

Item 7. Disclosure of Proxy Voting Policies and Procedures For Closed-End Management Investment Companies:

Not applicable
Item 8. Portfolio Managers of Closed-End Investment Companies
Not Applicable
Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers:

Not applicable
Item 10. Submission of Matters to a Vote of Security Holders:
Not applicable
Item 11. Controls and Procedures:
(a) The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the effectiveness of the design and operation of the registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the design and operation of such procedures are generally effective to provide reasonable assurance that information required to be disclosed by the registrant in this report is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms.

(b) Changes in internal control over financial reporting: Not applicable
Item 12. Exhibits:
(a)(1) Not applicable
(a)(2) Separate certifications for the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are filed herewith.

(b) The certifications required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended, are filed herewith.

Putnam Variable Trust
By (Signature and Title):
/s/Janet C. Smith
Janet C. Smith
Principal Accounting Officer

Date: August 27, 2014
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title):
/s/Jonathan S. Horwitz
Jonathan S. Horwitz
Principal Executive Officer

Date: August 27, 2014
By (Signature and Title):
/s/Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer

Date: August 27, 2014