N-CSRS 1 a_vtglobassetallocatio.htm PUTNAM VARIABLE TRUST a_vtglobassetallocatio.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, 2016
Date of reporting period: January 1, 2016 — June 30, 2016



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:

As summer comes to a close, we note that despite multiple headwinds and uncertainties both at home and overseas, the overall trajectory of the equity markets has been somewhat positive so far in 2016.

It is heartening that markets have recovered from various international and domestic challenges. We know volatile markets can be unsettling, but if recent events are any indication, we believe it is important not to overreact to short-term developments and to focus instead on the long term.

We believe the global environment continues to be supportive of stocks. Central banks around the world stand ready to add more stimulus and liquidity, if necessary, while the underpinnings of the U.S. economy remain solid, in our view. Overseas, higher hurdles to growth exist, but we believe that market gyrations may present investment opportunities. Within fixed income, yields have fallen — and in some cases have gone further into negative territory — as investors seek safety from turbulent markets, notably after the United Kingdom’s vote to depart the European Union.

At Putnam, our portfolio managers seek positive returns in every kind of market environment, backed by our network of global analysts and their own experience navigating changing conditions. They, and we, share a deep conviction that an active approach based on fundamental research can play a valuable role in your portfolio. In the following pages, you will find an overview of your fund’s performance for the reporting period ended June 30, 2016, as well as an outlook for the coming months.

As always, it may be helpful for you to consult with your financial advisor, who can assist you in determining if your portfolio remains aligned with your long-term goals, time horizon, and tolerance for risk.

Thank you for investing with Putnam.



Performance summary (as of 6/30/16)

Investment objective

Long-term return consistent with preservation of capital

Net asset value June 30, 2016

Class IA: $15.67  Class IB: $15.85 

 

Total return at net asset value

 

        Putnam 
        Balanced 
(as of      Russell 3000  Blended 
6/30/16)  Class IA shares*  Class IB shares†  Index  Benchmark 
6 months  1.29%  1.16%  3.62%  3.78% 
1 year  –0.91  –1.14  2.14  2.39 
5 years  45.84  44.01  73.08  45.33 
Annualized  7.84  7.57  11.60  7.76 
10 years  79.25  75.20  104.11  85.60 
Annualized  6.01  5.77  7.40  6.38 
Life  697.55  660.67  1,470.61  — 
Annualized  7.58  7.40  10.18  — 

 

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 Putnam Balanced Blended Benchmark is an unmanaged index administered by Putnam Investment Management, LLC, 50% of which is the Russell 3000 Index, 35% of which is the Barclays U.S. Aggregate Bond Index, 10% of which is the MSCI EAFE Index (ND), and 5% of which is the JPMorgan Developed High Yield Index.

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. Cash 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, the use of different classifications of securities for presentation purposes, and rounding. Holdings and allocations may vary over time.

Putnam VT Global Asset Allocation Fund  1 

 


Report from your fund’s manager

What was the investment environment like during the six-month reporting period ended June 30, 2016?

In the opening days of 2016, stocks sold off dramatically amid renewed fears about the pace of growth across global markets, uncertainty about future Federal Reserve action, and ongoing concerns about still-low energy prices. After bottoming on February 11, stocks and credit-sensitive bonds staged a broad-based rally through the end of March. Moreover, the rally was helped when Fed policymakers reassured markets that rate hikes would be gradual. Energy prices began to recover, and equities started to rebound as well. Continued easing of monetary policy in the eurozone and Japan also contributed to the rally, as did evidence of solid job growth and stable income growth in the United States. Fixed-income markets were somewhat volatile, but by period-end, both interest-rate-sensitive and credit-sensitive bonds had produced positive results.

In the latter half of the reporting period, a variety of headwinds converged to slow the market’s advance. Weak first-quarter gross domestic product growth, a slowdown in consumer spending, tepid first-quarter earnings, and a pause in the pace of jobs growth led the stock market to lose some of its momentum in April. However, stocks remained positive, achieving their third straight month of gains in May.

Brexit, the United Kingdom’s referendum vote on whether to remain in or leave the European Union [EU], weighed on investor sentiment for much of June. Many had assumed that the United Kingdom would vote to remain in the EU, but on June 23 U.K. voters shocked the world with a 52% to 48% decision in favor of withdrawing from the EU. Following the vote, stocks were down sharply around the world before quickly staging a recovery in the final days of the month.

How did Putnam VT Global Asset Allocation Fund perform during the reporting period?

For the six months ended June 30, 2016, the portfolio’s class IA shares returned 1.29%, compared with 3.78% for its custom, blended benchmark.

We generally seek to outperform our benchmark by focusing on two important considerations: 1.) how to weight the portfolio’s allocations to its multiple asset classes relative to the benchmark; and 2.) implementation and security-selection within each asset class.

During the six-month reporting period, asset allocations in the portfolio were kept close to benchmark weightings. There was one small exception, however, as we kept a slight underweight position in the fund’s exposure to rate-sensitive fixed-income securities, instead investing a portion of assets in out-of-benchmark fixed-income opportunities. Unfortunately, as rates moved generally down, this underweight positioning meant that the fund did not benefit as much from the strength of the rate-sensitive segment of the bond market as it would have had we not kept this underweight position.

The fund’s relative underperformance versus the benchmark was largely driven by security selection. We typically identify stock-selection opportunities using quantitative models that are then validated by informed judgment.

The biggest driver of the fund’s underperformance relative to the benchmark was stock selection within U.S. large-cap equities. We typically employ a quantitative methodology in that asset class to identify what we believe will be solid performers. While that implementation strategy has worked well for the fund in past periods, it underperformed during the first half of 2016. On the positive side, we did benefit from a strategy that emphasizes low beta stock selection as well as stock picking within our developed international value strategy.

How were derivatives used during the reporting period?

During the period, we used a number of derivative instruments that had a positive net effect on fund performance. Futures were used to help manage exposure to market risk, hedge prepayment and interest-rate risks, gain exposure to interest rates, and equitize cash. In addition, forward currency contracts provided a means to help reduce foreign exchange risk and increase the fund’s exposure to currencies. Total return swaps were used to help hedge sector exposure, to manage exposure to specific sectors, securities, or industries, and to gain exposure to a basket of securities as well as specific markets, sectors, countries, or industries. Interest-rate swaps were used to help mitigate against interest rate and prepayment risks and gain exposure to interest rates. Credit default swaps were used in an effort to hedge credit and market risks, in addition to increasing the fund’s exposure to individual holdings and/or baskets of securities.

What is your outlook for the fund and economy?

A fair amount of anxiety permeated the markets at period end, with concerns about future Fed action, eurozone growth, terrorism attacks, and the U.S. presidential campaign weighing on investor sentiment. The market dislikes uncertainty and would likely benefit from the resolution of some of these concerns.

That said, as we enter the second half of the year, with the U.S. presidential election looming, we expect lower asset class returns and heightened volatility. Moreover, we believe the global macroeconomic headwinds that we have faced in the recent past are likely to remain with us through the balance of the year. Global economic growth has remained slow, with economic regions outside the United States continuing to rely on accommodative monetary policy for support. For those and other reasons, we believe the investment environment going forward is likely to remain volatile, and it is our expectation that this volatility will continue to offer investment opportunities.

As we look at the equity space, we believe there is some reason for optimism given the Fed’s measured stance on monetary policy. However, we recognize that the rally in equities is now in its seventh year, which, in our view, could put valuation pressure on that asset class. As those and other factors play out, we expect to take advantage of what we believe to be tactical opportunities by selectively adding to holdings on market pullbacks, for example, and taking profits on rallies.

2  Putnam VT Global Asset Allocation Fund 

 


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: Allocation of assets among asset classes may hurt performance. Stock and bond prices may fall or fail to rise over time for several reasons, including general financial market conditions, 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. International investing involves currency, economic, and political risks. Emerging-market securities carry illiquidity and volatility risks. Investments in small and/or midsize companies increase the risk of greater price fluctuations. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. Funds that invest in government securities are not guaranteed. Mortgage-backed investments, unlike traditional debt investments, are also subject to prepayment risk, which means that they may increase in value less than other bonds when interest rates decline and decline in value more than other bonds when interest rates rise. 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). Default risk is generally higher for non-qualified mortgages. Interest-rate risk is greater for longer-term bonds, and credit risk is greater for below-investment-grade bonds. Unlike bonds, funds that invest in bonds have fees and expenses. The use of derivatives may increase these risks by increasing investment exposure (which may be considered leverage) or, in the case of over-the-counter instruments, because of the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations. 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; 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. In the most recent six-month period, your fund’s expenses were limited; had expenses not been limited, they would have been higher. 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 two left-hand columns of the Expenses per $1,000 table show the expenses you would have paid on a $1,000 investment in your fund from 1/1/16 to 6/30/16. 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 Expenses per $1,000 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.

Expense ratios

  Class IA  Class IB 
Total annual operating expenses for the fiscal year     
ended 12/31/15  0.87%  1.12% 
Annualized expense ratio for the six-month period     
ended 6/30/16  0.86%  1.11% 

 

Fiscal-year expense information in this table is taken from the most recent prospectus, is subject to change, and may differ from that shown for the annualized expense ratio and in the financial highlights of this report.

Expenses are shown as a percentage of average net assets.

Expenses per $1,000

  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 6/30/16    for the 6 months ended 6/30/16 
  Class IA  Class IB  Class IA  Class IB 
Expenses paid         
per $1,000*†  $4.30  $5.55  $4.32  $5.57 
Ending value         
(after expenses)  $1,012.90  $1,011.60  $1,020.59  $1,019.34 

 

*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 6/30/16. 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 6/30/16 (Unaudited)

COMMON STOCKS (55.8%)*   Shares   Value 
 
Basic materials (2.0%)     
Aceto Corp.   435   $9,522 
Akzo Nobel NV (Netherlands)   755   47,499 
Amcor, Ltd. (Australia)   3,292   36,817 
American Vanguard Corp. †   1,820   27,500 
Asahi Kasei Corp. (Japan)   5,000   34,648 
Axalta Coating Systems, Ltd. †   5,500   145,915 
BASF SE (Germany)   2,020   154,100 
Beacon Roofing Supply, Inc. †   762   34,648 
BHP Billiton, Ltd. (Australia)   1,986   28,286 
Boliden AB (Sweden)   466   9,053 
Cabot Corp.   1,229   56,116 
Cambrex Corp. †   625   32,331 
Chemtura Corp. †   963   25,404 
Chicago Bridge & Iron Co. NV   599   20,743 
CIMIC Group, Ltd. (Australia)   880   23,568 
Compagnie De Saint-Gobain (France)   216   8,269 
Continental Building Products, Inc. †   1,639   36,435 
Covestro AG (Germany)   253   11,274 
CRH PLC (Ireland)   306   8,824 
Daicel Corp. (Japan)   1,200   12,411 
Dominion Diamond Corp. (Canada)   710   6,276 
Domtar Corp.   527   18,450 
Dow Chemical Co. (The)   321   15,957 
Ems-Chemie Holding AG (Switzerland)   46   23,788 
Evonik Industries AG (Germany)   1,092   32,503 
Fortescue Metals Group, Ltd. (Australia)   5,452   14,674 
Glencore PLC (United Kingdom)   9,821   20,066 
Golden Agri-Resources, Ltd. (Singapore)   39,700   10,409 
Graphic Packaging Holding Co.   9,600   120,384 
Hitachi Chemical Co., Ltd. (Japan)   1,400   25,952 
Hitachi Metals, Ltd. (Japan)   600   6,071 
Innophos Holdings, Inc.   374   15,787 
KapStone Paper and Packaging Corp.   1,135   14,766 
Koppers Holdings, Inc. †   1,614   49,598 
Kraton Performance Polymers, Inc. †   461   12,876 
Kumagai Gumi Co., Ltd. (Japan)   11,000   30,963 
Kuraray Co., Ltd. (Japan)   1,800   21,407 
LSB Industries, Inc. †   341   4,119 
LyondellBasell Industries NV Class A   10,300   766,526 
Minerals Technologies, Inc.   502   28,514 
Mitsubishi Gas Chemical Co., Inc. (Japan)   3,000   15,561 
Mitsubishi Materials Corp. (Japan)   8,000   19,055 
Newcrest Mining, Ltd. (Australia) †   371   6,380 
Nippon Steel & Sumitomo Metal Corp. (Japan)   1,400   26,752 
Northern Star Resources, Ltd. (Australia)   4,160   15,361 
Orion Engineered Carbons SA (Luxembourg)   1,246   19,799 
Patrick Industries, Inc. †   834   50,282 
Reliance Steel & Aluminum Co.   1,500   115,350 
Rio Tinto PLC (United Kingdom)   418   12,920 
Salmar ASA (Norway)   419   12,512 
Sealed Air Corp.   6,200   285,014 
Sika AG (Switzerland)   6   25,099 
Skanska AB (Sweden)   2,956   61,648 
Smurfit Kappa Group PLC (Ireland)   795   17,622 

 

COMMON STOCKS (55.8%)* cont.   Shares   Value 
 
Basic materials cont.     
Stora Enso OYJ Class R (Finland)   5,274   $42,496 
Taisei Corp. (Japan)   3,000   24,464 
Tokyo Electric Power Company Holdings, Inc.     
(Norway) S   2,942   24,579 
Trex Co., Inc. †   186   8,355 
U.S. Concrete, Inc. †   469   28,567 
UPM-Kymmene OYJ (Finland)   2,520   46,196 
voestalpine AG (Austria)   679   22,721 
Yara International ASA (Norway)   1,745   55,400 
    2,938,582 
Capital goods (3.6%)     
ACS Actividades de Construccion y Servicios SA     
(Rights) (Spain) †   1,223   859 
ACS Actividades de Construccion y Servicios SA     
(Spain)   1,223   33,512 
Airbus Group SE (France)   509   29,557 
Allegion PLC (Ireland)   1,800   124,974 
Allison Transmission Holdings, Inc.   12,000   338,760 
Altra Industrial Motion Corp.   741   19,992 
American Axle & Manufacturing Holdings, Inc. †   1,395   20,200 
Applied Optoelectronics, Inc. † S   2,091   23,315 
Argan, Inc.   881   36,755 
AZZ, Inc.   298   17,874 
B/E Aerospace, Inc.   3,200   147,760 
BAE Systems PLC (United Kingdom)   1,553   10,889 
Boeing Co. (The)   9,000   1,168,830 
BWX Technologies, Inc.   2,500   89,425 
Carlisle Cos., Inc.   900   95,112 
Chase Corp.   231   13,645 
Cooper-Standard Holding, Inc. †   427   33,729 
Crown Holdings, Inc. †   10,000   506,700 
Cubic Corp.   452   18,152 
dorma + kaba Holding AG Class B (Switzerland)   45   31,396 
Douglas Dynamics, Inc.   372   9,572 
Dycom Industries, Inc. †   928   83,297 
General Dynamics Corp.   1,100   153,164 
Greenbrier Cos., Inc. (The)   674   19,634 
H&E Equipment Services, Inc.   1,495   28,450 
Hitachi High-Technologies Corp. (Japan)   700   19,067 
IDEX Corp.   1,100   90,310 
JTEKT Corp (Japan)   1,100   12,402 
Kadant, Inc.   566   29,155 
KBR, Inc.   2,500   33,100 
Koito Manufacturing Co., Ltd. (Japan)   200   9,153 
Kone OYJ Class B (Finland)   222   10,250 
Kratos Defense & Security Solutions, Inc. †   2,745   11,255 
Leggett & Platt, Inc.   1,000   51,110 
Littelfuse, Inc.   237   28,011 
MasTec, Inc. †   2,424   54,104 
Matrix Service Co. †   692   11,411 
Mitsubishi Electric Corp. (Japan)   8,000   94,857 
Mobileye NV (Israel) †   446   20,578 
MSA Safety, Inc.   256   13,448 
NN, Inc.   1,262   17,655 
Northrop Grumman Corp.   200   44,456 
NSK, Ltd. (Japan)   1,200   8,876 
Orbital ATK, Inc.   1,910   162,617 

 

Putnam VT Global Asset Allocation Fund  5 

 


COMMON STOCKS (55.8%)* cont.   Shares   Value 
 
Capital goods cont.     
OSRAM Licht AG (Germany)   761   $39,328 
Owens-Illinois, Inc. †   849   15,290 
Raytheon Co.   2,400   326,280 
Roper Technologies, Inc.   800   136,448 
Schindler Holding AG (Switzerland)   216   39,141 
Spirit AeroSystems Holdings, Inc. Class A †   3,200   137,600 
Standex International Corp.   296   24,458 
Stoneridge, Inc. †   1,383   20,662 
Sumitomo Heavy Industries, Ltd. (Japan)   2,000   8,729 
Sweco AB Class B (Sweden)   517   8,950 
Tetra Tech, Inc.   1,487   45,718 
Thales SA (France)   566   47,502 
Trinseo SA † S   1,741   74,741 
Vinci SA (France)   2,254   160,534 
Wabash National Corp. †   2,589   32,880 
Waste Management, Inc.   4,800   318,096 
Xylem, Inc.   2,900   129,485 
Zodiac Aerospace (France)   311   7,318 
    5,350,528 
Communication services (2.2%)     
ACC Claims Holding, LLC Class A (Units) † F   45,210   271 
BCE, Inc. (Canada)   235   11,121 
BT Group PLC (United Kingdom)   9,537   52,662 
CalAmp Corp. †   752   11,137 
Cellnex Telecom SAU 144A (Spain)   1,319   20,689 
Cogent Communications Holdings, Inc.   592   23,716 
Com Hem Holding AB (Sweden)   4,239   35,928 
Eutelsat Communications SA (France)   435   8,291 
Frontier Communications Corp.   4,022   19,869 
IDT Corp. Class B   607   8,613 
Inteliquent, Inc.   1,368   27,210 
InterDigital, Inc./PA   446   24,833 
Juniper Networks, Inc.   20,700   465,543 
KDDI Corp. (Japan)   2,200   66,971 
Liberty Global PLC Ser. C (United Kingdom) †   300   8,595 
Liberty Global PLC LiLAC Class C     
(United Kingdom) †   5   176 
NeuStar, Inc. Class A †   257   6,042 
Nippon Telegraph & Telephone Corp. (Japan)   3,600   168,997 
NTT DoCoMo, Inc. (Japan)   3,100   83,415 
Numericable-SFR SA (France)   700   17,718 
Orange SA (France)   4,988   81,474 
PCCW, Ltd. (Hong Kong)   33,000   22,145 
ShoreTel, Inc. †   1,597   10,684 
Sky PLC (United Kingdom)   7,222   81,972 
Spark New Zealand, Ltd. (New Zealand)   5,418   13,731 
Telecom Italia SpA RSP (Italy)   44,191   28,432 
Telenor ASA (Norway)   1,244   20,547 
Telstra Corp., Ltd. (Australia)   11,726   48,800 
Ubiquiti Networks, Inc. †   289   11,173 
Verizon Communications, Inc.   30,121   1,681,957 
Vocus Communications, Ltd. (Australia)   2,108   13,589 
Vodafone Group PLC (United Kingdom)   24,896   75,788 
    3,152,089 
Conglomerates (0.1%)     
Mitsubishi Corp. (Japan)   900   15,736 
Orkla ASA (Norway)   4,174   36,972 

 

COMMON STOCKS (55.8%)* cont.   Shares   Value 
 
Conglomerates cont.     
Siemens AG (Germany)   1,412   $144,643 
Tyco International PLC   521   22,195 
    219,546 
Consumer cyclicals (8.9%)     
Amazon.com, Inc. †   1,028   735,657 
Ardent Leisure Group (Units) (Australia)   5,157   7,273 
Aristocrat Leisure, Ltd. (Australia)   2,974   30,730 
Basso Industry Corp. (Taiwan)   7,000   19,940 
Berkeley Group Holdings PLC (United Kingdom)   634   21,583 
Big Lots, Inc.   437   21,898 
Boral, Ltd. (Australia)   5,581   26,153 
Boyd Gaming Corp. †   681   12,530 
Brambles, Ltd. (Australia)   9,476   87,929 
CaesarStone Sdot-Yam, Ltd. (Israel) † S   765   26,591 
Caleres, Inc.   913   22,104 
Carter’s, Inc.   3,400   361,998 
Cedar Fair LP   448   25,903 
Children’s Place, Inc. (The)   256   20,526 
Christian Dior SA (France)   81   13,121 
Cie Generale des Etablissements Michelin (France)   281   26,620 
Clorox Co. (The)   2,900   401,331 
Compass Group PLC (United Kingdom)   6,563   125,101 
comScore, Inc. †   231   5,516 
Continental AG (Germany)   93   17,477 
Cooper Tire & Rubber Co.   888   26,480 
Cox & Kings, Ltd. (India)   4,703   11,771 
Criteo SA ADR (France) †   401   18,414 
Ctrip.com International, Ltd. ADR (China) †   225   9,270 
Dai Nippon Printing Co., Ltd. (Japan)   9,000   99,958 
Daimler AG (Registered Shares) (Germany)   208   12,404 
Dalata Hotel Group PLC (Ireland) †   5,284   21,315 
Deluxe Corp.   1,108   73,538 
Diamond Resorts International, Inc. † S   1,297   38,858 
Discovery Communications, Inc. Class A † S   29,100   734,193 
DSW, Inc. Class A   718   15,207 
Electrolux AB (Sweden)   390   10,592 
Ennis, Inc.   758   14,538 
Ethan Allen Interiors, Inc.   1,296   42,820 
Experian PLC (United Kingdom)   1,375   26,118 
Express, Inc. †   1,546   22,432 
Fiat Chrysler Automobiles NV (Italy)   10,827   66,836 
Flight Centre Travel Group, Ltd. (Australia)   1,212   28,752 
Fuji Heavy Industries, Ltd. (Japan)   1,200   41,079 
Global Mediacom Tbk PT (Indonesia)   217,800   16,325 
Global Payments, Inc.   6,300   449,694 
Goodyear Tire & Rubber Co. (The)   7,117   182,622 
Hakuhodo DY Holdings, Inc. (Japan)   1,000   11,927 
Harvey Norman Holdings, Ltd. (Australia)   16,858   58,447 
Hino Motors, Ltd. (Japan)   1,300   12,864 
Home Depot, Inc. (The)   10,700   1,366,283 
ICF International, Inc. †   1,058   43,272 
IMAX Corp. (Canada) †   463   13,649 
Industrivarden AB Class A (Sweden)   1,960   34,218 
Interpublic Group of Cos., Inc. (The)   1,400   32,340 
ITV PLC (United Kingdom)   16,925   40,885 
KAR Auction Services, Inc.   4,500   187,830 
Kia Motors Corp. (South Korea)   544   20,489 

 

6  Putnam VT Global Asset Allocation Fund 

 


COMMON STOCKS (55.8%)* cont.   Shares   Value 
 
Consumer cyclicals cont.     
Kingfisher PLC (United Kingdom)   19,062   $82,281 
Lagardere SCA (France)   607   13,323 
Landauer, Inc.   343   14,118 
Lear Corp.   2,000   203,520 
LendingTree, Inc. †   217   19,168 
LGI Homes, Inc. † S   1,681   53,691 
Liberty Braves Group Class A †   360   5,414 
Liberty Interactive Corp. Class A †   2,000   50,740 
Liberty Media Group Class A †   900   17,226 
Liberty SiriusXM Group Class A †   3,500   109,760 
Lions Gate Entertainment Corp.   1,287   26,036 
Live Nation Entertainment, Inc. †   476   11,186 
Lowe’s Cos., Inc.   13,800   1,092,546 
Luxottica Group SpA (Italy)   462   22,511 
Macy’s, Inc.   4,900   164,689 
Madison Square Garden Co. (The) Class A †   200   34,502 
Malibu Boats, Inc. Class A †   582   7,031 
Marcus Corp. (The)   764   16,120 
Marks & Spencer Group PLC (United Kingdom)   8,295   35,269 
Marriott Vacations Worldwide Corp.   314   21,506 
Masco Corp.   14,000   433,160 
Mazda Motor Corp. (Japan)   2,700   36,163 
MCBC Holdings, Inc.   1,026   11,337 
MGM China Holdings, Ltd. (Hong Kong)   8,800   11,451 
MSG Networks, Inc. Class A †   2,300   35,282 
National CineMedia, Inc.   1,643   25,434 
News Corp. Class A   10,300   116,905 
Nexstar Broadcasting Group, Inc. Class A   310   14,750 
NIKE, Inc. Class B   7,700   425,040 
Nintendo Co., Ltd. (Japan)   300   42,806 
Nippon Television Holdings, Inc. (Japan)   1,300   21,295 
Nissan Motor Co., Ltd. (Japan)   2,500   22,527 
Oxford Industries, Inc.   277   15,684 
Panasonic Corp. (Japan)   1,900   16,440 
Pandora A/S (Denmark)   52   7,059 
Penn National Gaming, Inc. †   2,159   30,118 
Peugeot SA (France) †   1,833   22,327 
PGT, Inc. †   3,436   35,391 
Pitney Bowes, Inc.   787   14,009 
ProSiebenSat.1 Media SE (Germany) †   204   8,908 
Publicis Groupe SA (France)   177   11,991 
PVH Corp.   3,000   282,690 
Quanta Services, Inc. †   10,974   253,719 
RE/MAX Holdings, Inc. Class A   985   39,656 
Reed Elsevier PLC (United Kingdom)   1,833   33,774 
Regal Entertainment Group Class A S   1,617   35,639 
Regus PLC (United Kingdom)   7,021   27,083 
Renault SA (France)   699   53,263 
Restoration Hardware Holdings, Inc. †   451   12,935 
RTL Group SA (Belgium)   57   4,649 
Scotts Miracle-Gro Co. (The) Class A   1,000   69,910 
ServiceMaster Global Holdings, Inc. †   3,300   131,340 
Shimamura Co., Ltd. (Japan)   100   14,762 
Sinclair Broadcast Group, Inc. Class A   660   19,708 
Sirius XM Holdings, Inc. † S   90,000   355,500 
Six Flags Entertainment Corp.   2,600   150,670 
SJM Holdings, Ltd. (Hong Kong)   23,000   14,093 

 

COMMON STOCKS (55.8%)* cont.   Shares   Value 
 
Consumer cyclicals cont.     
Steven Madden, Ltd. †   597   $20,405 
Stroeer SE & Co. KGaA (Germany) S   301   13,777 
TABCORP Holdings, Ltd. (Australia)   3,549   12,134 
Takashimaya Co., Ltd. (Japan)   2,000   14,279 
Taylor Wimpey PLC (United Kingdom)   6,191   11,061 
Thor Industries, Inc.   700   45,318 
Toppan Printing Co., Ltd. (Japan)   5,000   42,864 
TransUnion †   1,200   40,128 
Travelport Worldwide, Ltd.   1,304   16,809 
Tribune Media Co. Class A   1,300   50,934 
TUI AG (London Exchange) (Germany)   1,090   12,375 
Urban Outfitters, Inc. †   3,300   90,750 
Valeo SA (France)   1,071   47,834 
Viacom, Inc. Class B   3,700   153,439 
Vista Outdoor, Inc. †   1,117   53,314 
Visteon Corp.   2,100   138,201 
Volkswagen AG (Preference) (Germany)   33   3,966 
Wal-Mart de Mexico SAB de CV (Mexico)   6,548   15,752 
Wal-Mart Stores, Inc.   17,800   1,299,756 
William Hill PLC (United Kingdom)   5,344   18,510 
Wolters Kluwer NV (Netherlands)   1,218   49,774 
Wolverine World Wide, Inc.   1,238   25,156 
World Fuel Services Corp.   1,200   56,988 
WPP PLC (United Kingdom)   8,537   177,251 
Yamaha Motor Co., Ltd. (Japan)   1,300   19,686 
Zee Entertainment Enterprises, Ltd. (India)   3,018   20,495 
    13,104,462 
Consumer staples (5.2%)     
Altria Group, Inc.   15,800   1,089,568 
Anheuser-Busch InBev SA/NV (Belgium)   712   93,592 
Ashtead Group PLC (United Kingdom)   2,336   33,524 
Associated British Foods PLC (United Kingdom)   1,431   51,885 
Barry Callebaut AG (Switzerland)   29   35,617 
Brinker International, Inc.   571   25,998 
British American Tobacco PLC (United Kingdom)   2,656   172,827 
Buffalo Wild Wings, Inc. †   99   13,756 
Bunge, Ltd.   1,500   88,725 
Campbell Soup Co.   5,700   379,221 
Cheesecake Factory, Inc. (The)   331   15,934 
Coca-Cola Amatil, Ltd. (Australia)   16,049   99,043 
Coca-Cola European Partners PLC (United Kingdom)   7,300   260,537 
ConAgra Foods, Inc.   700   33,467 
Dean Foods Co.   854   15,449 
Delhaize Group (Belgium)   616   65,089 
Delivery Hero Holding GmbH (acquired 6/12/15,     
cost $15,404) (Private) (Germany) † ∆∆ F   2   12,501 
Dr. Pepper Snapple Group, Inc.   8,500   821,355 
Edgewell Personal Care Co. †   1,500   126,615 
Energizer Holdings, Inc.   1,900   97,831 
Estee Lauder Cos., Inc. (The) Class A   4,300   391,386 
FTD Cos., Inc. †   1,113   27,780 
G-III Apparel Group, Ltd. †   403   18,425 
Geo Group, Inc. (The) R   923   31,548 
Hain Celestial Group, Inc. (The) †   378   18,806 
Heineken Holding NV (Netherlands)   313   25,568 
Henkel AG & Co. KGaA (Preference) (Germany)   415   50,464 
Hormel Foods Corp.   1,000   36,600 
Imperial Brands PLC (United Kingdom)   2,773   150,532 

 

Putnam VT Global Asset Allocation Fund  7 

 


COMMON STOCKS (55.8%)* cont.   Shares   Value 
 
Consumer staples cont.     
ITOCHU Corp. (Japan)   3,600   $43,742 
J Sainsbury PLC (United Kingdom)   9,976   30,938 
Japan Tobacco, Inc. (Japan)   1,600   64,097 
Jardine Cycle & Carriage, Ltd. (Singapore)   1,400   38,413 
John B. Sanfilippo & Son, Inc.   434   18,501 
Kao Corp. (Japan)   2,000   115,418 
Kerry Group PLC Class A (Ireland)   592   52,599 
Koninklijke Ahold NV (Netherlands)   5,141   114,326 
Kroger Co. (The)   11,200   412,048 
MEIJI Holdings Co., Ltd. (Japan)   200   20,306 
METRO AG (Germany)   1,073   32,824 
Nestle SA (Switzerland)   1,431   110,381 
Nomad Foods, Ltd. (United Kingdom) †   1,781   14,212 
Nutraceutical International Corp. †   429   9,931 
Omega Protein Corp. †   1,368   27,346 
On Assignment, Inc. †   870   32,147 
Paylocity Holding Corp. †   235   10,152 
PepsiCo, Inc.   9,400   995,836 
Philip Morris International, Inc.   233   23,701 
Reckitt Benckiser Group PLC (United Kingdom)   523   52,617 
S Foods, Inc. (Japan)   400   10,687 
SABMiller PLC (United Kingdom)   330   19,238 
Sanderson Farms, Inc. S   415   35,956 
Seven & i Holdings Co., Ltd. (Japan)   200   8,350 
Shiseido Co., Ltd. (Japan)   200   5,157 
SpartanNash Co.   890   27,216 
Stamps.com, Inc. †   161   14,075 
Starbucks Corp.   12,300   702,576 
Svenska Cellulosa AB SCA Class B (Sweden)   581   18,527 
Team Health Holdings, Inc. †   190   7,727 
Unilever NV ADR (Netherlands)   320   14,918 
Unilever PLC (United Kingdom)   908   43,554 
Vector Group, Ltd. S   1,193   26,747 
Vina Concha y Toro SA ADR (Chile)   284   9,014 
WH Group, Ltd. 144A (Hong Kong)   65,000   51,431 
WM Morrison Supermarkets PLC (United Kingdom)   3,643   9,138 
Wolseley PLC (United Kingdom)   467   24,202 
Woolworths, Ltd. (Australia)   1,355   21,274 
X5 Retail Group NV GDR (Russia) †   686   13,620 
    7,566,585 
Energy (3.1%)     
BP PLC (United Kingdom)   6,897   40,274 
Callon Petroleum Co. †   2,120   23,808 
CVR Energy, Inc. S   1,500   23,250 
Diamondback Energy, Inc. †   128   11,675 
EnCana Corp. (Canada)   1,079   8,393 
Ensco PLC Class A (United Kingdom)   5,300   51,463 
EOG Resources, Inc.   275   22,941 
Exxon Mobil Corp.   1,704   159,733 
Gulfport Energy Corp. †   387   12,098 
Halliburton Co.   12,100   548,009 
HollyFrontier Corp.   3,900   92,703 
Idemitsu Kosan Co., Ltd. (Japan)   1,000   21,562 
Lone Pine Resources Canada, Ltd. (Canada) † F   2,494   25 
Lone Pine Resources, Inc. Class A (Canada) † F   2,494   25 
Nabors Industries, Ltd.   17,400   174,870 
Neste Oil OYJ (Finland)   1,161   41,597 

 

COMMON STOCKS (55.8%)* cont.   Shares   Value 
 
Energy cont.     
Newfield Exploration Co. †   4,200   $185,556 
Norsk Hydro ASA (Norway)   5,878   21,483 
Northern Oil and Gas, Inc. †   2,248   10,386 
Occidental Petroleum Corp.   14,600   1,103,176 
OMV AG (Austria)   3,279   91,858 
Repsol YPF SA (Spain)   1,788   22,683 
Rowan Cos. PLC Class A   9,000   158,940 
Royal Dutch Shell PLC Class A (United Kingdom)   2,761   75,385 
Royal Dutch Shell PLC Class A (United Kingdom)   1,854   50,848 
Royal Dutch Shell PLC Class B (United Kingdom)   3,256   89,538 
Schlumberger, Ltd.   7,500   593,100 
Suncor Energy, Inc. (Canada)   758   21,028 
Technip SA (France)   131   7,125 
Tesoro Corp.   4,000   299,680 
Total SA (France)   4,113   198,336 
Valero Energy Corp.   6,400   326,400 
Vestas Wind Systems A/S (Denmark)   1,009   68,475 
Whiting Petroleum Corp. †   267   2,472 
Woodside Petroleum, Ltd. (Australia)   1,868   37,865 
    4,596,760 
Financials (9.9%)     
3i Group PLC (United Kingdom)   16,178   120,409 
Access National Corp.   493   9,618 
Admiral Group PLC (United Kingdom)   838   22,873 
Aegon NV (Netherlands)   3,275   13,063 
AerCap Holdings NV (Ireland) †   400   13,436 
AG Mortgage Investment Trust, Inc. R   299   4,318 
Ageas (Belgium)   436   15,064 
Agree Realty Corp. R   498   24,024 
AIA Group, Ltd. (Hong Kong)   12,200   73,515 
Allianz SE (Germany)   996   141,902 
Allied World Assurance Co. Holdings AG   2,565   90,134 
Allstate Corp. (The)   8,600   601,570 
American Capital Agency Corp. R   10,700   212,074 
American Equity Investment Life Holding Co.   1,553   22,130 
American Financial Group, Inc.   1,000   73,930 
Ameriprise Financial, Inc.   3,400   305,490 
Amtrust Financial Services, Inc.   1,346   32,977 
Anicom Holdings, Inc. (Japan)   800   22,405 
Annaly Capital Management, Inc. R   23,500   260,145 
Apartment Investment & Management Co. Class A R   2,500   110,400 
Apollo Commercial Real Estate Finance, Inc. R   753   12,101 
Arbor Realty Trust, Inc. R   2,936   21,110 
Arlington Asset Investment Corp. Class A   344   4,475 
ARMOUR Residential REIT, Inc. R   199   3,980 
Ashford Hospitality Trust, Inc. R   1,853   9,951 
Aspen Insurance Holdings, Ltd.   1,200   55,656 
Australia & New Zealand Banking Group, Ltd.     
(Australia)   1,036   18,889 
Aviva PLC (United Kingdom)   3,428   18,423 
AXA SA (France)   5,316   106,796 
Banc of California, Inc.   612   11,077 
Banco Latinoamericano de Comercio Exterior SA     
Class E (Panama)   1,111   29,442 
Banco Santander SA (Spain)   20,339   79,188 
Bank of Ireland (Ireland) †   35,826   7,466 
Bank of New York Mellon Corp. (The)   10,500   407,925 

 

8  Putnam VT Global Asset Allocation Fund 

 


COMMON STOCKS (55.8%)* cont.   Shares   Value 
 
Financials cont.     
Bank of Queensland, Ltd. (Australia)   1,019   $8,117 
BNP Paribas SA/New York, NY (France)   2,654   119,318 
BofI Holding, Inc. † S   1,196   21,181 
Brandywine Realty Trust R   1,094   18,379 
Broadridge Financial Solutions, Inc.   1,400   91,280 
Camden Property Trust R   1,500   132,630 
Cardinal Financial Corp.   970   21,282 
Cardtronics, Inc. †   646   25,717 
CBL & Associates Properties, Inc. R   662   6,163 
CBRE Group, Inc. Class A †   12,200   323,056 
Challenger, Ltd. (Australia)   7,631   49,538 
Chesapeake Lodging Trust R   964   22,413 
Chimera Investment Corp. R   7,398   116,149 
Chubb, Ltd.   130   16,992 
Citigroup, Inc.   18,000   763,020 
Citizens & Northern Corp.   628   12,698 
CNO Financial Group, Inc.   1,232   21,511 
CNP Assurances (France)   2,600   38,536 
Colony Capital, Inc. Class A R   869   13,339 
Communications Sales & Leasing, Inc. R   1,829   52,858 
Community Healthcare Trust, Inc. R   794   16,785 
Concordia Financial Group, Ltd. (Japan) †   8,100   31,695 
CoreLogic, Inc. †   1,900   73,112 
Credicorp, Ltd. (Peru)   109   16,822 
Credit Suisse Group AG (Switzerland)   474   5,051 
Customers Bancorp, Inc. †   1,306   32,820 
CYS Investments, Inc. R   944   7,901 
Daiwa Securities Group, Inc. (Japan)   2,000   10,512 
Danske Bank A/S (Denmark)   382   10,123 
DNB ASA (Norway)   543   6,565 
Duke Realty Corp. R   2,800   74,648 
E*Trade Financial Corp. †   13,290   312,182 
East West Bancorp, Inc.   886   30,283 
Employers Holdings, Inc.   1,582   45,910 
Encore Capital Group, Inc. †   423   9,953 
Enterprise Financial Services Corp.   412   11,491 
EPR Properties R   283   22,832 
Equity Lifestyle Properties, Inc. R   1,100   88,055 
Essent Group, Ltd. †   697   15,202 
Eurazeo SA (France)   144   8,595 
Euronext NV 144A (France)   129   4,779 
Farmers Capital Bank Corp.   449   12,280 
FCB Financial Holdings, Inc. Class A †   963   32,742 
Federal Agricultural Mortgage Corp. Class C   447   15,565 
Federated National Holding Co.   1,516   28,865 
Fidelity Southern Corp.   1,338   20,966 
Financial Institutions, Inc.   647   16,867 
First BanCorp. (Puerto Rico) †   9,203   36,536 
First Community Bancshares, Inc.   615   13,801 
First Industrial Realty Trust R   596   16,581 
FirstMerit Corp.   761   15,425 
Flagstar Bancorp, Inc. †   615   15,012 
Flushing Financial Corp.   632   12,564 
Foxtons Group PLC (United Kingdom)   8,317   12,267 
Franklin Financial Network, Inc. †   490   15,366 
Fukuoka Financial Group, Inc. (Japan)   5,000   16,445 

 

COMMON STOCKS (55.8%)* cont.   Shares   Value 
 
Financials cont.     
General Growth Properties R   8,400   $250,488 
Genworth Financial, Inc. Class A †   2,347   6,055 
Goodman Group (Australia) R   12,150   64,767 
Great Southern Bancorp, Inc.   548   20,260 
Grupo Financiero Banorte SAB de CV (Mexico)   4,585   25,625 
Hang Lung Group, Ltd. (Hong Kong)   3,000   9,038 
Hanmi Financial Corp.   1,276   29,973 
HCI Group, Inc.   316   8,620 
Heartland Financial USA, Inc.   437   15,422 
Heritage Insurance Holdings, Inc.   1,106   13,239 
Hersha Hospitality Trust R   499   8,558 
Hibernia REIT PLC (Ireland) R   30,859   46,044 
Horizon Bancorp   480   12,067 
Housing Development Finance Corp., Ltd.     
(HDFC) (India)   1,314   24,518 
HSBC Holdings PLC (United Kingdom)   17,677   110,429 
Iida Group Holdings Co., Ltd. (Japan)   500   10,184 
ING Groep NV GDR (Netherlands)   3,974   41,305 
Invesco Mortgage Capital, Inc. R   480   6,571 
Investor AB Class B (Sweden)   3,370   112,737 
Investors Real Estate Trust R   1,344   8,696 
Japan Hotel REIT Investment Corp (Japan) R   44   36,987 
Jones Lang LaSalle, Inc.   600   58,470 
JPMorgan Chase & Co.   25,043   1,556,172 
Kennedy-Wilson Holdings, Inc.   1,066   20,211 
Kerry Properties, Ltd. (Hong Kong)   12,500   30,838 
KKR & Co. LP   791   9,761 
Lakeland Bancorp, Inc.   1,639   18,652 
Lazard, Ltd. Class A   659   19,625 
Legal & General Group PLC (United Kingdom)   2,606   6,755 
Lend Lease Group (Australia)   4,015   38,076 
Lexington Realty Trust R   2,599   26,276 
Lincoln National Corp.   7,100   275,267 
Link REIT (The) (Hong Kong) R   1,000   6,841 
Lloyds Banking Group PLC (United Kingdom)   6,044   4,444 
LTC Properties, Inc. R   698   36,108 
Macquarie Group, Ltd. (Australia)   248   12,898 
Maiden Holdings, Ltd. (Bermuda)   1,068   13,072 
MainSource Financial Group, Inc.   959   21,146 
Meta Financial Group, Inc.   356   18,142 
Metro Bank PLC (United Kingdom) †   765   18,570 
MFA Financial, Inc. R   12,683   92,205 
Mid-America Apartment Communities, Inc. R   1,200   127,680 
Mitsubishi UFJ Financial Group, Inc. (Japan)   22,900   102,073 
Mitsubishi UFJ Lease & Finance Co., Ltd. (Japan)   17,100   65,326 
Mitsui Fudosan Co., Ltd. (Japan)   2,000   45,656 
Mizuho Financial Group, Inc. (Japan)   77,800   111,385 
Morgan Stanley   23,400   607,932 
Muenchener Rueckversicherungs-Gesellschaft AG in     
Muenchen (Germany)   550   91,921 
National Health Investors, Inc. R   703   52,788 
Natixis SA (France)   3,755   14,422 
Nelnet, Inc. Class A   719   24,985 
New World Development Co., Ltd. (Hong Kong)   53,000   53,839 
NN Group NV (Netherlands)   1,270   35,282 
Nomura Real Estate Holdings, Inc. (Japan)   1,200   20,879 
One Liberty Properties, Inc. R   651   15,526 

 

Putnam VT Global Asset Allocation Fund  9 

 


COMMON STOCKS (55.8%)* cont.   Shares   Value 
 
Financials cont.     
Oppenheimer Holdings, Inc. Class A   646   $9,987 
Opus Bank   558   18,860 
ORIX Corp. (Japan)   5,700   72,786 
Pacific Premier Bancorp, Inc. †   597   14,328 
PacWest Bancorp   256   10,184 
Partners Group Holding AG (Switzerland)   39   16,723 
PennyMac Financial Services, Inc. Class A †   19   237 
Peoples Bancorp, Inc.   598   13,030 
Permanent TSB Group Holdings PLC (Ireland) †   7,970   15,005 
Persimmon PLC (United Kingdom)   657   12,821 
Popular, Inc. (Puerto Rico)   4,455   130,532 
Prudential Financial, Inc.   10,000   713,400 
Prudential PLC (United Kingdom)   2,452   41,772 
Raiffeisen Bank International AG (Austria) †   794   9,993 
Ramco-Gershenson Properties Trust R   754   14,786 
Realogy Holdings Corp. †   5,600   162,512 
Regions Financial Corp.   20,700   176,157 
Reinsurance Group of America, Inc.   1,000   96,990 
Republic Bancorp, Inc. Class A   391   10,803 
Resona Holdings, Inc. (Japan)   16,800   61,198 
SCOR SE (France)   401   12,080 
Sekisui Chemical Co., Ltd. (Japan)   900   11,032 
Select Income REIT R   488   12,683 
Shriram Transport Finance Co., Ltd. (India)   1,249   22,314 
Simon Property Group, Inc. R   700   151,830 
Skandinaviska Enskilda Banken AB (Sweden)   930   8,082 
Societe Generale SA (France)   1,957   61,847 
St James’s Place PLC (United Kingdom)   1,195   12,800 
STAG Industrial, Inc. R   665   15,834 
Starwood Property Trust, Inc. R   7,500   155,400 
Sumitomo Mitsui Financial Group, Inc. (Japan)   4,200   120,415 
Sumitomo Mitsui Trust Holdings, Inc. (Japan)   7,000   22,654 
Sumitomo Warehouse Co., Ltd. (The) (Japan)   3,000   14,870 
Summit Hotel Properties, Inc. R   1,676   22,190 
Sun Hung Kai Properties, Ltd. (Hong Kong)   1,000   12,048 
Suruga Bank, Ltd. (Japan)   300   6,774 
Surya Semesta Internusa Tbk PT (Indonesia)   104,400   4,941 
Swedbank AB Class A (Sweden)   453   9,476 
Swiss Life Holding AG (Switzerland)   259   59,832 
Swiss Re AG (Switzerland)   1,513   132,276 
Synchrony Financial †   23,900   604,192 
Talmer Bancorp, Inc. Class A   1,028   19,707 
TCF Financial Corp.   1,658   20,974 
Turkiye Garanti Bankasi AS (Turkey)   5,413   14,444 
Two Harbors Investment Corp. R   8,100   69,336 
UBS Group AG (Switzerland)   1,502   19,434 
United Community Banks, Inc.   632   11,559 
United Insurance Holdings Corp.   2,226   36,462 
Universal Health Realty Income Trust R   168   9,606 
Virgin Money Holdings UK PLC (United Kingdom)   2,536   8,517 
Voya Financial, Inc.   7,100   175,796 
WageWorks, Inc. †   250   14,953 
Wells Fargo & Co.   8,785   415,794 
Western Alliance Bancorp †   871   28,438 
Wharf Holdings, Ltd. (The) (Hong Kong)   2,000   12,236 
Wheelock and Co., Ltd. (Hong Kong)   12,000   56,521 
Woori Bank (South Korea)   1,446   12,021 

 

COMMON STOCKS (55.8%)* cont.   Shares   Value 
 
Financials cont.     
Worldpay Group PLC (United Kingdom) †   5,978   $21,759 
Zions Bancorporation   656   16,485 
    14,501,253 
Health care (7.7%)     
ACADIA Pharmaceuticals, Inc. †   292   9,478 
Actelion, Ltd. (Switzerland)   179   30,036 
AIN Holdings, Inc. (Japan)   600   46,435 
Akorn, Inc. †   371   10,568 
Albany Molecular Research, Inc. † S   2,065   27,754 
Alfresa Holdings Corp. (Japan)   500   10,413 
Allergan PLC †   143   33,046 
AMAG Pharmaceuticals, Inc. †   1,015   24,279 
AmerisourceBergen Corp.   9,700   769,404 
Amgen, Inc.   7,700   1,171,555 
AmSurg Corp. †   143   11,088 
ANI Pharmaceuticals, Inc. †   199   11,108 
Anthem, Inc.   6,000   788,040 
Applied Genetic Technologies Corp. †   610   8,619 
Aralez Pharmaceuticals, Inc. (Canada) †   3,543   11,692 
Ardelyx, Inc. †   1,205   10,520 
ARIAD Pharmaceuticals, Inc. †   1,242   9,178 
Astellas Pharma, Inc. (Japan)   8,300   129,889 
AstraZeneca PLC (United Kingdom)   2,116   125,963 
Aurobindo Pharma, Ltd. (India)   1,435   15,779 
Bayer AG (Germany)   527   53,023 
Biospecifics Technologies Corp. †   276   11,023 
Bruker Corp.   2,800   63,672 
C.R. Bard, Inc.   2,300   540,868 
Cardinal Health, Inc.   4,700   366,647 
Cardiome Pharma Corp. (Canada) †   5,273   27,050 
Celgene Corp. †   140   13,808 
Centene Corp. †   588   41,966 
Charles River Laboratories International, Inc. †   2,233   184,089 
Chemed Corp.   509   69,382 
Clinigen Group PLC (United Kingdom)   2,347   19,009 
Cochlear, Ltd. (Australia)   160   14,512 
Conmed Corp.   491   23,435 
Depomed, Inc. †   381   7,475 
DexCom, Inc. †   335   26,576 
Dynavax Technologies Corp. †   872   12,714 
Eagle Pharmaceuticals, Inc. †   174   6,749 
Emergent BioSolutions, Inc. †   803   22,580 
Endo International PLC †   1,853   28,888 
Entellus Medical, Inc. †   360   6,577 
FivePrime Therapeutics, Inc. †   283   11,702 
Gilead Sciences, Inc.   12,900   1,076,118 
GlaxoSmithKline PLC (United Kingdom)   9,128   196,236 
Globus Medical, Inc. Class A †   623   14,846 
Grifols SA ADR (Spain)   1,654   27,572 
Halozyme Therapeutics, Inc. †   635   5,480 
Halyard Health, Inc. †   939   30,536 
HealthEquity, Inc. †   602   18,292 
HealthSouth Corp.   805   31,250 
Hologic, Inc. †   7,900   273,340 
Horizon Pharma PLC †   1,953   32,166 
ICU Medical, Inc. †   548   61,787 
Immune Design Corp. †   398   3,248 
Impax Laboratories, Inc. †   1,047   30,175 

 

10  Putnam VT Global Asset Allocation Fund 

 


COMMON STOCKS (55.8%)* cont.   Shares   Value 
 
Health care cont.     
INC Research Holdings, Inc. Class A †   335   $12,774 
Incyte Corp. †   400   31,992 
Inotek Pharmaceuticals Corp. †   601   4,471 
Insys Therapeutics, Inc. † S   374   4,840 
Integer Holdings Corp. †   939   29,043 
Integra LifeSciences Holdings Corp. †   193   15,398 
Jazz Pharmaceuticals PLC †   777   109,798 
Johnson & Johnson   16,700   2,025,710 
Kindred Healthcare, Inc.   794   8,964 
Lannett Co., Inc. † S   1,022   24,313 
Ligand Pharmaceuticals, Inc. †   122   14,551 
Lonza Group AG (Switzerland)   195   32,314 
McKesson Corp.   2,500   466,625 
Medicines Co. (The) †   606   20,380 
Medipal Holdings Corp. (Japan)   2,300   37,740 
Medivation, Inc. †   404   24,361 
Merrimack Pharmaceuticals, Inc. †   1,475   7,950 
MiMedx Group, Inc. †   1,751   13,973 
Mitsubishi Tanabe Pharma Corp. (Japan)   900   16,143 
Molina Healthcare, Inc. †   91   4,541 
Myriad Genetics, Inc. †   255   7,803 
Neurocrine Biosciences, Inc. †   200   9,090 
Novartis AG (Switzerland)   2,516   206,976 
Novavax, Inc. †   717   5,213 
Novo Nordisk A/S Class B (Denmark)   793   42,645 
Omega Healthcare Investors, Inc. R   553   18,774 
Ophthotech Corp. †   332   16,942 
OraSure Technologies, Inc. †   2,062   12,186 
Pacira Pharmaceuticals, Inc. †   319   10,760 
PharMerica Corp. †   1,391   34,302 
Portola Pharmaceuticals, Inc. †   184   4,342 
Prestige Brands Holdings, Inc. †   396   21,938 
Prothena Corp. PLC (Ireland) † S   487   17,026 
RadNet, Inc. †   1,877   10,023 
Repligen Corp. †   425   11,628 
Rigel Pharmaceuticals, Inc. †   1,322   2,948 
Roche Holding AG (Switzerland)   720   190,102 
Rockwell Medical, Inc. †   1,655   12,528 
Sage Therapeutics, Inc. †   153   4,610 
Sanofi (France)   2,485   208,884 
Select Medical Holdings Corp. †   2,030   22,066 
Shionogi & Co., Ltd. (Japan)   300   16,316 
Shire PLC (United Kingdom)   1,072   66,013 
Spectranetics Corp. (The) †   635   11,881 
STERIS PLC (United Kingdom)   261   17,944 
Sucampo Pharmaceuticals, Inc. Class A †   1,070   11,738 
Supernus Pharmaceuticals, Inc. †   874   17,803 
Surgical Care Affiliates, Inc. †   868   41,378 
Taro Pharmaceutical Industries, Ltd. (Israel) †   34   4,950 
TESARO, Inc. †   508   42,697 
Teva Pharmaceutical Industries, Ltd. ADR (Israel)   990   49,728 
Tokai Pharmaceuticals, Inc. †   361   1,989 
Triple-S Management Corp. Class B (Puerto Rico) †   544   13,290 
Ultragenyx Pharmaceutical, Inc. †   139   6,798 
uniQure NV (Netherlands) †   392   2,889 
VCA, Inc. †   1,500   101,415 
VWR Corp. †   1,061   30,663 

 

COMMON STOCKS (55.8%)* cont.   Shares   Value 
 
Health care cont.     
Zeltiq Aesthetics, Inc. †   656   $17,928 
Zoetis, Inc.   9,000   427,140 
    11,266,862 
Technology (9.4%)     
A10 Networks, Inc. †   1,398   9,045 
Adobe Systems, Inc. †   8,000   766,320 
Advanced Energy Industries, Inc. †   1,522   57,775 
Agilent Technologies, Inc.   9,500   421,420 
Alibaba Group Holding, Ltd. ADR (China) †   318   25,291 
Alphabet, Inc. Class A †   1,591   1,119,316 
Amadeus IT Holding SA Class A (Spain)   890   38,990 
Ambarella, Inc. †   234   11,890 
Amdocs, Ltd.   5,400   311,688 
Apigee Corp. †   1,183   14,456 
Apple, Inc.   15,904   1,520,422 
Applied Materials, Inc.   14,500   347,565 
Arrow Electronics, Inc. †   226   13,989 
ASML Holding NV (Netherlands)   112   11,102 
Aspen Technology, Inc. †   385   15,492 
AtoS SE (France)   646   53,960 
AVG Technologies NV (Netherlands) †   955   18,135 
Blackbaud, Inc.   341   23,154 
Brocade Communications Systems, Inc.   15,800   145,044 
CACI International, Inc. Class A †   156   14,104 
Casetek Holdings, Ltd. (Taiwan)   3,000   10,516 
Cavium, Inc. †   292   11,271 
CEVA, Inc. †   1,021   27,741 
Ciena Corp. †   495   9,281 
Cirrus Logic, Inc. †   822   31,885 
Cisco Systems, Inc.   7,100   203,699 
COLOPL, Inc. (Japan)   700   13,846 
CompuGroup Medical SE (Germany)   704   29,275 
Computer Sciences Corp.   8,165   405,392 
Cornerstone OnDemand, Inc. †   372   14,158 
Cray, Inc. †   322   9,634 
CSG Systems International, Inc.   905   36,481 
CSRA, Inc.   3,000   70,290 
Cypress Semiconductor Corp.   3,668   38,697 
DSP Group, Inc. †   2,326   24,679 
eBay, Inc. †   36,000   842,760 
EnerSys   748   44,484 
Facebook, Inc. Class A †   126   14,399 
Fleetmatics Group PLC (Ireland) †   330   14,299 
Fujitsu, Ltd. (Japan)   3,000   10,993 
GenMark Diagnostics, Inc. †   1,606   13,972 
Gigamon, Inc. †   228   8,525 
GungHo Online Entertainment, Inc. (Japan) S   9,400   25,316 
Hoya Corp. (Japan)   1,000   35,604 
Imprivata, Inc. †   1,201   16,814 
Infinera Corp. †   1,435   16,187 
Integrated Device Technology, Inc. †   821   16,527 
Intersil Corp. Class A   1,242   16,817 
Intuit, Inc.   2,100   234,381 
Ixia †   1,601   15,722 
j2 Global, Inc.   637   40,239 
L-3 Communications Holdings, Inc.   4,700   689,443 
Lattice Semiconductor Corp. †   5,419   28,992 
Leidos Holdings, Inc.   6,100   292,007 

 

Putnam VT Global Asset Allocation Fund  11 

 


COMMON STOCKS (55.8%)* cont.   Shares   Value 
 
Technology cont.     
Lenovo Group, Ltd. (China)   12,000   $7,250 
Maxim Integrated Products, Inc.   9,500   339,055 
Mellanox Technologies, Ltd. (Israel) †   849   40,718 
Mentor Graphics Corp.   1,661   35,313 
Microsemi Corp. †   421   13,758 
Microsoft Corp.   40,411   2,067,831 
Mixi, Inc. (Japan)   500   20,476 
MKS Instruments, Inc.   702   30,228 
MobileIron, Inc. †   3,209   9,787 
Monolithic Power Systems, Inc.   254   17,353 
Motorola Solutions, Inc.   3,300   217,701 
MTS Systems Corp.   169   7,409 
Murata Manufacturing Co., Ltd. (Japan)   400   44,871 
NCR Corp. †   4,928   136,851 
Netscout Systems, Inc. †   146   3,249 
NetSuite, Inc. †   108   7,862 
Nexon Co., Ltd. (Japan)   1,900   27,912 
Nokia OYJ (Finland) †   7,591   43,137 
Nuance Communications, Inc. †   6,900   107,847 
NVIDIA Corp.   17,300   813,273 
ON Semiconductor Corp. †   2,855   25,181 
Oracle Corp Japan (Japan)   200   10,645 
Otsuka Corp. (Japan)   100   4,646 
Paycom Software, Inc. †   269   11,623 
Perficient, Inc. †   939   19,071 
Plantronics, Inc.   542   23,848 
Plexus Corp. †   731   31,579 
Power Integrations, Inc.   287   14,370 
Proofpoint, Inc. †   406   25,615 
PROS Holdings, Inc. †   1,070   18,650 
QAD, Inc. Class A   754   14,530 
Red Hat, Inc. †   3,500   254,100 
RIB Software AG (Germany) S   1,437   13,950 
Rovi Corp. †   780   12,199 
Samsung Electronics Co., Ltd. (South Korea)   91   113,282 
Sanmina Corp. †   679   18,204 
Sartorius AG (Preference) (Germany)   264   19,351 
Seiko Epson Corp. (Japan)   600   9,588 
Semtech Corp. †   225   5,369 
Sensata Technologies Holding NV †   920   32,099 
Silicon Laboratories, Inc. †   152   7,408 
SK Hynix, Inc. (South Korea)   390   11,085 
Skyworks Solutions, Inc.   245   15,504 
SoftBank Corp. (Japan)   400   22,630 
Sopra Steria Group (France)   129   13,388 
Synaptics, Inc. †   217   11,664 
Synchronoss Technologies, Inc. †   260   8,284 
SYNNEX Corp.   306   29,015 
Taiwan Semiconductor Manufacturing Co., Ltd.     
(Taiwan)   3,000   15,170 
TDK Corp. (Japan)   400   22,288 
Tencent Holdings, Ltd. (China)   1,200   27,338 
Tessera Technologies, Inc.   884   27,086 
Tower Semiconductor, Ltd. (Israel) † S   3,379   41,967 
Tyler Technologies, Inc. †   231   38,510 
Ultimate Software Group, Inc. †   73   15,351 
Veeva Systems, Inc. Class A †   571   19,483 

 

COMMON STOCKS (55.8%)* cont.   Shares   Value 
 
Technology cont.     
VeriFone Systems, Inc. †   459   $8,510 
Verint Systems, Inc. †   365   12,092 
Web.com Group, Inc. †   1,639   29,797 
Woodward, Inc.   818   47,150 
Xerox Corp.   39,800   377,702 
Zendesk, Inc. †   413   10,895 
    13,735,582 
Transportation (1.5%)     
Aegean Marine Petroleum Network, Inc. (Greece)   2,337   12,854 
Aena SA (Spain) †   110   14,485 
ANA Holdings, Inc. (Japan)   16,000   45,397 
AP Moeller - Maersk A/S (Denmark)   30   39,555 
Aurizon Holdings, Ltd. (Australia)   6,134   22,220 
Central Japan Railway Co. (Japan)   700   123,898 
CH Robinson Worldwide, Inc.   400   29,700 
ComfortDelgro Corp., Ltd. (Singapore)   16,100   32,998 
Delta Air Lines, Inc.   18,700   681,241 
Deutsche Post AG (Germany)   3,628   101,289 
DHT Holdings, Inc. (Bermuda)   2,730   13,732 
easyJet PLC (United Kingdom)   477   6,929 
International Consolidated Airlines Group SA     
(Spain)   3,177   15,904 
Japan Airlines Co., Ltd. (Japan)   1,500   48,145 
Matson, Inc.   462   14,918 
Qantas Airways, Ltd. (Australia)   9,432   19,887 
Royal Mail PLC (United Kingdom)   6,751   45,767 
Ryanair Holdings PLC ADR (Ireland)   369   25,660 
Saia, Inc. †   654   16,442 
Scorpio Tankers, Inc.   2,047   8,597 
United Parcel Service, Inc. Class B   6,800   732,496 
Wabtec Corp.   266   18,681 
Yangzijiang Shipbuilding Holdings, Ltd. (China)   115,900   78,087 
    2,148,882 
Utilities and power (2.2%)     
American Electric Power Co., Inc.   2,200   154,198 
Centrica PLC (United Kingdom)   7,078   21,369 
China Water Affairs Group, Ltd. (China)   38,000   21,996 
Chubu Electric Power Co., Inc. (Japan)   1,300   18,511 
CLP Holdings, Ltd. (Hong Kong)   7,000   71,566 
Dynegy, Inc. †   1,200   20,688 
E.ON SE (Germany)   8,061   80,647 
Edison International   4,400   341,748 
Endesa SA (Spain)   2,717   54,646 
Enel SpA (Italy)   12,215   54,326 
Entergy Corp.   11,200   911,120 
Iberdrola SA (Spain)   18,861   127,398 
Korea Electric Power Corp. (South Korea)   77   4,064 
NiSource, Inc.   5,300   140,556 
PPL Corp.   13,000   490,750 
RWE AG (Germany) †   2,151   33,991 
SSE PLC (United Kingdom)   636   13,299 
Toho Gas Co., Ltd. (Japan)   6,000   48,816 
Tohoku Electric Power Co., Inc. (Japan)   800   10,032 
Tokyo Electric Power Company Holdings, Inc.     
(Japan) †   2,300   9,699 
Tokyo Gas Co., Ltd. (Japan)   5,000   20,526 
UGI Corp.   9,800   443,450 

 

12  Putnam VT Global Asset Allocation Fund 

 


COMMON STOCKS (55.8%)* cont.   Shares   Value 
 
Utilities and power cont.     
Vectren Corp.   900   $47,403 
Veolia Environnement SA (France)   2,253   48,945 
    3,189,744 
 
Total common stocks (cost $75,407,135)     $81,770,875 
 
 
U.S. GOVERNMENT AND AGENCY     
MORTGAGE OBLIGATIONS (18.6%)*   Principal amount   Value 
 
U.S. Government Guaranteed Mortgage Obligations (6.2%)   
Government National Mortgage Association     
Pass-Through Certificates     
6 1/2s, with due dates from May 20, 2037     
to November 20, 2039   $526,303   $611,279 
3 1/2s, TBA, August 1, 2046   3,000,000   3,179,180 
3 1/2s, TBA, July 1, 2046   5,000,000   5,305,860 
    9,096,319 
U.S. Government Agency Mortgage Obligations (12.4%)   
Federal National Mortgage Association     
Pass-Through Certificates     
6s, TBA, July 1, 2046   2,000,000   2,287,500 
4 1/2s, TBA, July 1, 2046   1,000,000   1,091,719 
4s, TBA, August 1, 2046   4,000,000   4,285,312 
4s, TBA, July 1, 2046   4,000,000   4,288,750 
3s, TBA, August 1, 2046   1,000,000   1,035,742 
3s, TBA, July 1, 2046   3,000,000   3,112,734 
3s, TBA, July 1, 2031   2,000,000   2,096,719 
    18,198,476 
Total U.S. government and agency mortgage     
obligations (cost $27,097,561)     $27,294,795 
 
 
U.S. TREASURY OBLIGATIONS (0.1%)*   Principal amount   Value 
 
U.S. Treasury Notes 1.500%, February 28, 2023 i   $140,000   $142,765 
Total U.S. treasury obligations (cost $142,765)     $142,765 
 
 
CORPORATE BONDS AND NOTES (18.6%)*   Principal amount   Value 
 
Basic materials (1.3%)     
A Schulman, Inc. 144A company guaranty sr. unsec.     
unsub. notes 6 7/8s, 2023   $20,000   $19,970 
Agrium, Inc. sr. unsec. notes 3 3/8s, 2025     
(Canada)   40,000   41,165 
Agrium, Inc. sr. unsec. unsub. notes 5 1/4s, 2045     
(Canada)   20,000   21,453 
ArcelorMittal SA sr. unsec. unsub. bonds 10.85s,     
2019 (France)   27,000   31,793 
ArcelorMittal SA sr. unsec. unsub. bonds 6 1/8s,     
2025 (France)   10,000   9,938 
Archer-Daniels-Midland Co. sr. unsec.     
notes 5.45s, 2018   102,000   109,043 
Beacon Roofing Supply, Inc. company     
guaranty sr. unsec. unsub. notes 6 3/8s, 2023   20,000   20,950 
Blue Cube Spinco, Inc. 144A company     
guaranty sr. unsec. notes 9 3/4s, 2023   20,000   23,150 
Boise Cascade Co. company guaranty sr. unsec.     
notes 6 3/8s, 2020   20,000   20,400 
Builders FirstSource, Inc. 144A company     
guaranty sr. unsec. notes 10 3/4s, 2023   30,000   32,625 
Celanese US Holdings, LLC company     
guaranty sr. unsec. notes 5 7/8s, 2021 (Germany)   20,000   22,350 
Celanese US Holdings, LLC company     
guaranty sr. unsec. unsub. notes 4 5/8s, 2022     
(Germany)   7,000   7,429 
CF Industries, Inc. company guaranty sr. unsec.     
notes 5 3/8s, 2044   6,000   5,691 

 

CORPORATE BONDS AND NOTES (18.6%)* cont.   Principal amount   Value 
 
Basic materials cont.     
CF Industries, Inc. company guaranty sr. unsec.     
notes 5.15s, 2034   $8,000   $7,792 
Chemours Co. (The) company guaranty sr. unsec.     
unsub. notes 7s, 2025   5,000   4,194 
Chemours Co. (The) company guaranty sr. unsec.     
unsub. notes 6 5/8s, 2023   15,000   12,750 
Compass Minerals International, Inc. 144A company     
guaranty sr. unsec. notes 4 7/8s, 2024   25,000   23,313 
CPG Merger Sub, LLC 144A company     
guaranty sr. unsec. notes 8s, 2021   7,000   7,000 
E.I. du Pont de Nemours & Co. sr. unsec.     
notes 3 5/8s, 2021   95,000   101,895 
Eastman Chemical Co. sr. unsec. notes 3.8s, 2025   35,000   37,067 
First Quantum Minerals, Ltd. 144A company     
guaranty sr. unsec. notes 7s, 2021 (Canada)   35,000   28,263 
Freeport-McMoran Oil & Gas, LLC/FCX Oil &     
Gas, Inc. company guaranty sr. unsec.     
notes 6 3/4s, 2022   14,000   13,724 
Freeport-McMoran Oil & Gas, LLC/FCX Oil &     
Gas, Inc. company guaranty sr. unsec.     
unsub. notes 6 7/8s, 2023   20,000   19,300 
GCP Applied Technologies, Inc. 144A company     
guaranty sr. unsec. notes 9 1/2s, 2023   30,000   33,525 
Glencore Funding, LLC 144A company     
guaranty sr. unsec. unsub. notes 4 5/8s, 2024   94,000   87,890 
Glencore Funding, LLC 144A company     
guaranty sr. unsec. unsub. notes 4s, 2025   64,000   56,640 
Glencore Funding, LLC 144A company     
guaranty sr. unsec. unsub. notes 2 7/8s, 2020   42,000   39,480 
HD Supply, Inc. company guaranty sr. unsec.     
sub. notes 7 1/2s, 2020   23,000   24,090 
HD Supply, Inc. 144A company guaranty sr. unsec.     
notes 5 3/4s, 2024   10,000   10,400 
HudBay Minerals, Inc. company guaranty sr. unsec.     
notes 9 1/2s, 2020 (Canada)   25,000   20,938 
Huntsman International, LLC company     
guaranty sr. unsec. notes 5 1/8s, 2022   5,000   4,950 
Huntsman International, LLC company     
guaranty sr. unsec. unsub. notes 4 7/8s, 2020   20,000   20,100 
Joseph T Ryerson & Son, Inc. 144A sr. notes 11s, 2022   15,000   15,525 
Kraton Polymers LLC/Kraton Polymers Capital Corp.     
144A company guaranty sr. unsec. notes 10 1/2s, 2023   20,000   21,300 
Louisiana-Pacific Corp. company     
guaranty sr. unsec. notes 7 1/2s, 2020   20,000   20,675 
Lubrizol Corp. (The) sr. unsec. notes 8 7/8s, 2019   50,000   59,561 
LyondellBasell Industries NV sr. unsec.     
unsub. notes 4 5/8s, 2055   30,000   29,279 
Mercer International, Inc. company     
guaranty sr. unsec. notes 7 3/4s, 2022 (Canada)   15,000   15,000 
Methanex Corp. sr. unsec. unsub. notes 5.65s,     
2044 (Canada)   45,000   37,345 
Methanex Corp. sr. unsec. unsub. notes 3 1/4s,     
2019 (Canada)   6,000   5,841 
New Gold, Inc. 144A company guaranty sr. unsec.     
unsub. notes 7s, 2020 (Canada)   25,000   25,500 
New Gold, Inc. 144A company guaranty sr. unsec.     
unsub. notes 6 1/4s, 2022 (Canada)   10,000   9,750 
Norbord, Inc. 144A company     
guaranty sr. notes 6 1/4s, 2023 (Canada)   25,000   25,563 
Novelis, Inc. company guaranty sr. unsec.     
notes 8 3/4s, 2020   35,000   36,488 

 

Putnam VT Global Asset Allocation Fund  13 

 


CORPORATE BONDS AND NOTES (18.6%)* cont.   Principal amount   Value 
 
Basic materials cont.     
Novelis, Inc. company guaranty sr. unsec.     
notes 8 3/8s, 2017   $5,000   $5,113 
Packaging Corp. of America sr. unsec.     
unsub. notes 4 1/2s, 2023   45,000   48,998 
PQ Corp. 144A company guaranty sr. notes 6 3/4s, 2022   5,000   5,213 
Rio Tinto Finance USA, Ltd. company     
guaranty sr. unsec. unsub. notes 9s, 2019     
(Australia)   62,000   74,495 
Sealed Air Corp. 144A company guaranty sr. unsec.     
notes 6 7/8s, 2033   10,000   10,600 
Sealed Air Corp. 144A company guaranty sr. unsec.     
notes 6 1/2s, 2020   9,000   10,238 
Sealed Air Corp. 144A company guaranty sr. unsec.     
notes 5 1/4s, 2023   14,000   14,490 
Sealed Air Corp. 144A company guaranty sr. unsec.     
notes 5 1/8s, 2024   5,000   5,131 
Sealed Air Corp. 144A company guaranty sr. unsec.     
notes 4 7/8s, 2022   5,000   5,144 
Sealed Air Corp. 144A sr. unsec. bonds 5 1/2s, 2025   5,000   5,206 
Smurfit Kappa Treasury Funding, Ltd. company     
guaranty sr. unsec. unsub. notes 7 1/2s, 2025     
(Ireland)   10,000   11,663 
Steel Dynamics, Inc. company guaranty sr. unsec.     
unsub. notes 6 3/8s, 2022   18,000   18,900 
Steel Dynamics, Inc. company guaranty sr. unsec.     
unsub. notes 5 1/2s, 2024   20,000   20,450 
Steel Dynamics, Inc. company guaranty sr. unsec.     
unsub. notes 5 1/4s, 2023   3,000   3,060 
Steel Dynamics, Inc. company guaranty sr. unsec.     
unsub. notes 5 1/8s, 2021   5,000   5,119 
Teck Resources, Ltd. 144A company     
guaranty sr. unsec. notes 8 1/2s, 2024 (Canada)   5,000   5,150 
Teck Resources, Ltd. 144A company     
guaranty sr. unsec. notes 8s, 2021 (Canada)   5,000   5,150 
TMS International Corp. 144A company     
guaranty sr. unsec. sub. notes 7 5/8s, 2021   25,000   17,563 
U.S. Concrete, Inc. 144A company     
guaranty sr. unsec. notes 6 3/8s, 2024   15,000   15,000 
Univar USA, Inc. 144A company guaranty sr. unsec.     
notes 6 3/4s, 2023   15,000   14,813 
USG Corp. 144A company guaranty sr. unsec.     
notes 5 7/8s, 2021   3,000   3,139 
USG Corp. 144A company guaranty sr. unsec.     
notes 5 1/2s, 2025   10,000   10,475 
Weekley Homes, LLC/Weekley Finance Corp.     
sr. unsec. notes 6s, 2023   10,000   8,800 
WestRock MWV, LLC company guaranty sr. unsec.     
unsub. notes 8.2s, 2030   35,000   46,984 
WestRock MWV, LLC company guaranty sr. unsec.     
unsub. notes 7.95s, 2031   10,000   13,345 
WestRock RKT Co. company guaranty sr. unsec.     
unsub. notes 4.45s, 2019   38,000   40,257 
Weyerhaeuser Co. sr. unsec. unsub. notes 7 3/8s,     
2032 R   60,000   79,380 
WR Grace & Co.- Conn. 144A company     
guaranty sr. unsec. notes 5 5/8s, 2024   20,000   20,500 
WR Grace & Co.- Conn. 144A company     
guaranty sr. unsec. notes 5 1/8s, 2021   10,000   10,275 
Zekelman Industries, Inc. 144A company     
guaranty sr. notes 9 7/8s, 2023   15,000   15,150 
    1,770,896 

 

CORPORATE BONDS AND NOTES (18.6%)* cont.   Principal amount   Value 
 
Capital goods (0.9%)     
Advanced Disposal Services, Inc. company     
guaranty sr. unsec. notes 8 1/4s, 2020   $43,000   $43,430 
American Axle & Manufacturing, Inc. company     
guaranty sr. unsec. notes 7 3/4s, 2019   17,000   18,870 
Amstead Industries, Inc. 144A company     
guaranty sr. unsec. sub. notes 5 3/8s, 2024   10,000   9,800 
Amstead Industries, Inc. 144A company     
guaranty sr. unsec. sub. notes 5s, 2022   15,000   15,000 
ATS Automation Tooling Systems, Inc. 144A     
sr. unsec. notes 6 1/2s, 2023 (Canada)   10,000   10,188 
Belden, Inc. 144A company guaranty sr. unsec.     
sub. notes 5 1/2s, 2022   10,000   10,075 
Belden, Inc. 144A company guaranty sr. unsec.     
sub. notes 5 1/4s, 2024   10,000   9,675 
Berry Plastics Corp. company guaranty notes 6s, 2022   5,000   5,169 
Berry Plastics Corp. company     
guaranty notes 5 1/2s, 2022   10,000   10,238 
Berry Plastics Corp. company     
guaranty unsub. notes 5 1/8s, 2023   10,000   10,000 
Boeing Capital Corp. sr. unsec.     
unsub. notes 4.7s, 2019   40,000   44,590 
Bombardier, Inc. 144A sr. unsec.     
unsub. notes 4 3/4s, 2019 (Canada)   20,000   19,100 
Briggs & Stratton Corp. company     
guaranty sr. unsec. notes 6 7/8s, 2020   45,000   49,050 
Covidien International Finance SA company     
guaranty sr. unsec. unsub. notes 6s, 2017     
(Luxembourg)   130,000   138,208 
Crown Cork & Seal Co., Inc. company     
guaranty sr. unsec. bonds 7 3/8s, 2026   10,000   11,000 
Delphi Corp. company guaranty sr. unsec.     
notes 5s, 2023   45,000   47,700 
DH Services Luxembourg Sarl 144A company     
guaranty sr. unsec. sub. notes 7 3/4s, 2020     
(Luxembourg)   8,000   8,380 
Gates Global, LLC/Gates Global Co. 144A company     
guaranty sr. unsec. notes 6s, 2022   15,000   13,125 
General Dynamics Corp. company     
guaranty sr. unsec. unsub. notes 3.6s, 2042   60,000   63,382 
General Dynamics Corp. company     
guaranty sr. unsec. unsub. notes 2 1/4s, 2022   30,000   30,688 
Honeywell International, Inc. sr. unsec.     
unsub. notes 5 3/8s, 2041   55,000   71,806 
Honeywell International, Inc. sr. unsec.     
unsub. notes 4 1/4s, 2021   40,000   44,933 
KLX, Inc. 144A company guaranty sr. unsec.     
notes 5 7/8s, 2022   30,000   29,400 
Legrand France SA sr. unsec. unsub. notes 8 1/2s,     
2025 (France)   114,000   155,314 
Manitowoc Foodservice, Inc. 144A sr. unsec.     
notes 9 1/2s, 2024   30,000   33,525 
MasTec, Inc. company guaranty sr. unsec.     
unsub. notes 4 7/8s, 2023   20,000   18,550 
Medtronic, Inc. company guaranty sr. unsec.     
sub. notes 4 3/8s, 2035   27,000   30,541 
Medtronic, Inc. company guaranty sr. unsec.     
sub. notes 3 1/2s, 2025   27,000   29,433 
Moog, Inc. 144A company guaranty sr. unsec.     
notes 5 1/4s, 2022   20,000   20,250 
Oshkosh Corp. company guaranty sr. unsec.     
sub. notes 5 3/8s, 2025   25,000   25,688 

 

14  Putnam VT Global Asset Allocation Fund 

 


CORPORATE BONDS AND NOTES (18.6%)* cont.   Principal amount   Value 
 
Capital goods cont.     
Oshkosh Corp. company guaranty sr. unsec.     
sub. notes 5 3/8s, 2022   $15,000   $15,450 
Raytheon Co. sr. unsec. notes 4 7/8s, 2040   20,000   24,390 
Reynolds Group Issuer, Inc./Reynolds Group     
Issuer, LLC/Reynolds Group Issuer Lu 144A     
company guaranty sr. FRN 4.127s, 2021   30,000   30,075 
Reynolds Group Issuer, Inc./Reynolds Group     
Issuer, LLC/Reynolds Group Issuer Lu 144A     
company guaranty sr. unsec. unsub. notes 7s, 2024   15,000   15,443 
Tenneco, Inc. company guaranty sr. unsec.     
unsub. notes 5 3/8s, 2024   15,000   15,563 
Tenneco, Inc. company guaranty sr. unsec.     
unsub. notes 5s, 2026   5,000   5,072 
Terex Corp. company guaranty sr. unsec. notes 6s, 2021   19,000   19,024 
TI Group Automotive Systems, LLC 144A sr. unsec.     
notes 8 3/4s, 2023   25,000   24,500 
TransDigm, Inc. company guaranty sr. unsec.     
sub. notes 7 1/2s, 2021   20,000   21,200 
TransDigm, Inc. company guaranty sr. unsec.     
unsub. notes 6 1/2s, 2024   13,000   13,187 
TransDigm, Inc. 144A company guaranty sr. unsec.     
sub. bonds 6 3/8s, 2026   10,000   9,975 
United Technologies Corp. sr. unsec.     
unsub. notes 5 3/8s, 2017   107,000   113,917 
    1,334,904 
Communication services (1.6%)     
American Tower Corp. sr. unsec. notes 4s, 2025 R   100,000   106,347 
AT&T, Inc. sr. unsec. unsub. notes 4 3/4s, 2046   77,000   78,915 
Cablevision Systems Corp. sr. unsec.     
unsub. notes 8 5/8s, 2017   40,000   42,250 
Cablevision Systems Corp. sr. unsec.     
unsub. notes 8s, 2020   7,000   7,179 
Cablevision Systems Corp. sr. unsec.     
unsub. notes 7 3/4s, 2018   10,000   10,706 
CCO Holdings, LLC/CCO Holdings Capital Corp.     
company guaranty sr. unsec. notes 6 5/8s, 2022   13,000   13,715 
CCO Holdings, LLC/CCO Holdings Capital Corp.     
company guaranty sr. unsec. notes 5 1/4s, 2022   7,000   7,158 
CCO Holdings, LLC/CCO Holdings Capital Corp. 144A     
company guaranty sr. unsec. bonds 5 1/2s, 2026   15,000   15,225 
CCO Holdings, LLC/CCO Holdings Capital Corp. 144A     
company guaranty sr. unsec. notes 5 7/8s, 2024   25,000   25,938 
CCO Holdings, LLC/CCO Holdings Capital Corp. 144A     
sr. unsec. notes 5 3/4s, 2026   5,000   5,150 
CCO Holdings, LLC/CCO Holdings Capital Corp. 144A     
sr. unsec. unsub. notes 5 1/8s, 2023   5,000   5,028 
CenturyLink, Inc. sr. unsec. unsub. notes 6 3/4s, 2023   14,000   13,755 
CenturyLink, Inc. sr. unsec. unsub. notes 5 5/8s, 2020   4,000   4,150 
Cequel Communications Holdings I, LLC/Cequel     
Capital Corp. 144A sr. unsec.     
unsub. notes 5 1/8s, 2021   15,000   14,250 
Cequel Communications Holdings I, LLC/Cequel     
Capital Corp. 144A sr. unsec.     
unsub. notes 5 1/8s, 2021   10,000   9,525 
Charter Communications Operating, LLC/Charter     
Communications Operating Capital 144A     
sr. sub. bonds 6.484s, 2045   17,000   20,298 
Charter Communications Operating, LLC/Charter     
Communications Operating Capital 144A     
sr. sub. notes 4.908s, 2025   8,000   8,746 
Comcast Corp. company guaranty sr. unsec.     
unsub. bonds 6 1/2s, 2017   55,000   56,613 

 

CORPORATE BONDS AND NOTES (18.6%)* cont.   Principal amount   Value 
 
Communication services cont.     
Comcast Corp. company guaranty sr. unsec.     
unsub. notes 6.95s, 2037   $64,000   $92,055 
Comcast Corp. company guaranty sr. unsec.     
unsub. notes 6 1/2s, 2035   17,000   23,272 
Crown Castle International Corp. sr. unsec.     
notes 5 1/4s, 2023 R   45,000   50,493 
Crown Castle International Corp. sr. unsec.     
notes 4 7/8s, 2022 R   7,000   7,683 
Crown Castle International Corp. sr. unsec.     
unsub. bonds 3.7s, 2026 R   35,000   36,021 
Crown Castle Towers, LLC 144A company     
guaranty sr. notes 4.883s, 2020   15,000   16,352 
CSC Holdings, LLC sr. unsec. unsub. bonds 5 1/4s, 2024   8,000   7,280 
CSC Holdings, LLC sr. unsec. unsub. notes 6 3/4s, 2021   26,000   26,520 
Deutsche Telekom International Finance BV company     
guaranty sr. unsec. unsub. bonds 8 3/4s, 2030     
(Netherlands)   73,000   109,930 
DISH DBS Corp. company guaranty sr. unsec.     
unsub. notes 5 7/8s, 2024   15,000   13,950 
Frontier Communications Corp. sr. unsec.     
notes 11s, 2025   10,000   10,350 
Frontier Communications Corp. sr. unsec.     
notes 10 1/2s, 2022   5,000   5,291 
Frontier Communications Corp. sr. unsec.     
notes 8 7/8s, 2020   5,000   5,338 
Frontier Communications Corp. sr. unsec.     
unsub. notes 7 5/8s, 2024   4,000   3,550 
Intelsat Jackson Holdings SA company     
guaranty sr. unsec. notes 7 1/2s, 2021 (Bermuda)   12,000   8,280 
Intelsat Jackson Holdings SA company     
guaranty sr. unsec. unsub. bonds 6 5/8s, 2022     
(Bermuda)   7,000   4,725 
Intelsat Luxembourg SA company     
guaranty sr. unsec. bonds 7 3/4s, 2021     
(Luxembourg)   5,000   1,225 
Intelsat Luxembourg SA company     
guaranty sr. unsec. sub. bonds 8 1/8s, 2023     
(Luxembourg)   8,000   1,980 
Koninklijke KPN NV sr. unsec.     
unsub. bonds 8 3/8s, 2030 (Netherlands)   30,000   41,494 
Level 3 Communications, Inc. sr. unsec.     
unsub. notes 5 3/4s, 2022   5,000   5,063 
Level 3 Financing, Inc. company     
guaranty sr. unsec. unsub. notes 6 1/8s, 2021   5,000   5,210 
Level 3 Financing, Inc. company     
guaranty sr. unsec. unsub. notes 5 3/8s, 2024   5,000   5,019 
Level 3 Financing, Inc. company     
guaranty sr. unsec. unsub. notes 5 3/8s, 2022   15,000   15,150 
Orange SA sr. unsec. unsub. notes 4 1/8s, 2021     
(France)   46,000   50,748 
Quebecor Media, Inc. sr. unsec.     
unsub. notes 5 3/4s, 2023 (Canada)   3,000   3,045 
Rogers Communications, Inc. company     
guaranty sr. unsec. unsub. notes 4 1/2s, 2043     
(Canada)   85,000   89,928 
Sprint Capital Corp. company guaranty sr. unsec.     
unsub. notes 6 7/8s, 2028   85,000   66,725 
Sprint Communications, Inc. sr. unsec. notes 7s, 2020   5,000   4,444 
Sprint Communications, Inc. sr. unsec.     
unsub. notes 8 3/8s, 2017   17,000   17,410 
Sprint Communications, Inc. 144A company     
guaranty sr. unsec. notes 9s, 2018   15,000   15,975 

 

Putnam VT Global Asset Allocation Fund  15 

 


CORPORATE BONDS AND NOTES (18.6%)* cont.   Principal amount   Value 
 
Communication services cont.     
Sprint Corp. company guaranty sr. unsec.     
sub. notes 7 7/8s, 2023   $48,000   $39,240 
Sprint Corp. company guaranty sr. unsec.     
sub. notes 7 1/4s, 2021   17,000   14,493 
T-Mobile USA, Inc. company guaranty sr. unsec.     
notes 6 5/8s, 2023   13,000   13,813 
T-Mobile USA, Inc. company guaranty sr. unsec.     
notes 6 3/8s, 2025   10,000   10,450 
T-Mobile USA, Inc. company guaranty sr. unsec.     
notes 6 1/4s, 2021   20,000   20,900 
T-Mobile USA, Inc. company guaranty sr. unsec.     
notes 6s, 2023   5,000   5,175 
T-Mobile USA, Inc. company guaranty sr. unsec.     
unsub. notes 6.836s, 2023   3,000   3,169 
T-Mobile USA, Inc. company guaranty sr. unsec.     
unsub. notes 6.633s, 2021   7,000   7,350 
T-Mobile USA, Inc. company guaranty sr. unsec.     
unsub. notes 6.464s, 2019   7,000   7,114 
T-Mobile USA, Inc. company guaranty sr. unsec.     
unsub. notes 6 1/8s, 2022   17,000   17,829 
TCI Communications, Inc. sr. unsec.     
unsub. notes 7 1/8s, 2028   65,000   90,471 
Telefonica Emisiones SAU company     
guaranty sr. unsec. notes 4.57s, 2023 (Spain)   150,000   166,057 
Verizon Communications, Inc. sr. unsec.     
unsub. notes 6.4s, 2033   8,000   10,211 
Verizon Communications, Inc. sr. unsec.     
unsub. notes 4.522s, 2048   315,000   328,010 
Verizon Communications, Inc. sr. unsec.     
unsub. notes 4.4s, 2034   65,000   67,025 
Verizon New Jersey, Inc. company     
guaranty sr. unsec. unsub. bonds 8s, 2022   45,000   56,512 
Videotron, Ltd. company guaranty sr. unsec.     
unsub. notes 5s, 2022 (Canada)   20,000   20,700 
Vodafone Group PLC sr. unsec.     
unsub. notes 1 1/4s, 2017 (United Kingdom)   225,000   224,665 
West Corp. 144A company guaranty sr. unsec.     
sub. notes 5 3/8s, 2022   25,000   23,250 
WideOpenWest Finance, LLC/WideOpenWest     
Capital Corp. company guaranty sr. unsec.     
sub. notes 10 1/4s, 2019   24,000   24,840 
Windstream Services, LLC company     
guaranty sr. unsec. notes 7 3/4s, 2021   9,000   8,483 
Windstream Services, LLC company     
guaranty sr. unsec. notes 6 3/8s, 2023   25,000   21,000 
    2,370,211 
Conglomerates (0.1%)     
General Electric Capital Corp. company     
guaranty sr. unsec. notes 6 3/4s, 2032   59,000   82,804 
General Electric Capital Corp. company     
guaranty sr. unsec. unsub. notes Ser. MTN, 5.4s, 2017   129,000   132,565 
    215,369 
Consumer cyclicals (2.5%)     
21st Century Fox America, Inc. company     
guaranty sr. unsec. notes 7 3/4s, 2024   50,000   65,297 
21st Century Fox America, Inc. company     
guaranty sr. unsec. unsub. notes 7 3/4s, 2045   150,000   219,110 
Amazon.com, Inc. sr. unsec. notes 1.2s, 2017   128,000   128,454 
AMC Entertainment, Inc. company     
guaranty sr. unsec. sub. notes 5 7/8s, 2022   10,000   10,050 
AMC Entertainment, Inc. 144A company     
guaranty sr. unsec. sub. notes 5 3/4s, 2025   10,000   9,950 

 

CORPORATE BONDS AND NOTES (18.6%)* cont.   Principal amount   Value 
 
Consumer cyclicals cont.     
American Builders & Contractors Supply Co., Inc.     
144A sr. unsec. notes 5 3/4s, 2023   $15,000   $15,450 
American Tire Distributors, Inc. 144A sr. unsec.     
sub. notes 10 1/4s, 2022   25,000   21,938 
Autonation, Inc. company guaranty sr. unsec.     
unsub. notes 5 1/2s, 2020   78,000   85,256 
Bed Bath & Beyond, Inc. sr. unsec.     
sub. notes 5.165s, 2044   52,000   45,817 
Bon-Ton Department Stores, Inc. (The) company     
guaranty notes 10 5/8s, 2017   20,000   18,400 
Bon-Ton Department Stores, Inc. (The) company     
guaranty notes 8s, 2021   14,000   5,740 
Boyd Gaming Corp. company guaranty sr. unsec.     
sub. notes 6 7/8s, 2023   10,000   10,650 
Boyd Gaming Corp. 144A company     
guaranty sr. unsec. unsub. bonds 6 3/8s, 2026   5,000   5,225 
Brookfield Residential Properties, Inc. 144A     
company guaranty sr. unsec. notes 6 1/2s, 2020     
(Canada)   33,000   32,918 
Brookfield Residential     
Properties, Inc./Brookfield Residential US Corp.     
144A company guaranty sr. unsec. notes 6 1/8s,     
2022 (Canada)   10,000   9,563 
CalAtlantic Group, Inc. company     
guaranty sr. unsec. sub. notes 6 1/4s, 2021   24,000   25,500 
CalAtlantic Group, Inc. company     
guaranty sr. unsec. sub. notes 5 7/8s, 2024   5,000   5,150 
CBS Corp. company guaranty sr. unsec.     
debs. 7 7/8s, 2030   57,000   80,811 
CCM Merger, Inc. 144A company guaranty sr. unsec.     
notes 9 1/8s, 2019   14,000   14,525 
Cedar Fair LP/Canada’s Wonderland Co./Magnum     
Management Corp. company guaranty sr. unsec.     
notes 5 1/4s, 2021   13,000   13,319 
Cinemark USA, Inc. company guaranty sr. unsec.     
notes 5 1/8s, 2022   3,000   3,053 
Cinemark USA, Inc. company guaranty sr. unsec.     
sub. notes 4 7/8s, 2023   4,000   3,960 
Clear Channel Worldwide Holdings, Inc. company     
guaranty sr. unsec. sub. notes 7 5/8s, 2020   20,000   19,000 
Clear Channel Worldwide Holdings, Inc. company     
guaranty sr. unsec. unsub. notes 6 1/2s, 2022   29,000   29,000 
Dollar General Corp. sr. unsec.     
sub. notes 3 1/4s, 2023   75,000   77,863 
Dollar Tree, Inc. 144A company     
guaranty sr. unsec. unsub. notes 5 3/4s, 2023   5,000   5,313 
Dollar Tree, Inc. 144A company     
guaranty sr. unsec. unsub. notes 5 1/4s, 2020   5,000   5,150 
Eldorado Resorts, Inc. company     
guaranty sr. unsec. unsub. notes 7s, 2023   15,000   15,563 
Entercom Radio, LLC company guaranty sr. unsec.     
notes 10 1/2s, 2019   20,000   21,100 
Expedia, Inc. company guaranty sr. unsec.     
unsub. notes 5.95s, 2020   90,000   100,671 
Expedia, Inc. 144A company guaranty sr. unsec.     
unsub. notes 5s, 2026   25,000   25,966 
Ford Motor Co. sr. unsec. unsub. bonds 7.7s, 2097   24,000   29,730 
Ford Motor Co. sr. unsec. unsub. notes 9.98s, 2047   25,000   38,148 
Ford Motor Co. sr. unsec. unsub. notes 7.45s, 2031   35,000   46,930 
Ford Motor Co. sr. unsec. unsub. notes 7.4s, 2046   40,000   56,096 
Ford Motor Credit Co., LLC sr. unsec.     
unsub. notes 8 1/8s, 2020   140,000   166,693 

 

16  Putnam VT Global Asset Allocation Fund 

 


CORPORATE BONDS AND NOTES (18.6%)* cont.   Principal amount   Value 
Consumer cyclicals cont.       
General Motors Co. sr. unsec. notes 5.2s, 2045     $5,000   $4,954 
General Motors Co. sr. unsec.       
unsub. notes 6 3/4s, 2046     30,000   35,586 
General Motors Financial Co., Inc. company       
guaranty sr. unsec. notes 3s, 2017     39,000   39,565 
General Motors Financial Co., Inc. company       
guaranty sr. unsec. unsub. notes 4.3s, 2025     22,000   22,572 
General Motors Financial Co., Inc. company       
guaranty sr. unsec. unsub. notes 4s, 2025     10,000   10,118 
General Motors Financial Co., Inc. company       
guaranty sr. unsec. unsub. notes 3.45s, 2022     95,000   94,933 
Gibson Brands, Inc. 144A sr. notes 8 7/8s, 2018     10,000   5,563 
GLP Capital LP/GLP Financing II, Inc. company       
guaranty sr. unsec. sub. notes 4 7/8s, 2020     17,000   17,616 
GLP Capital LP/GLP Financing II, Inc. company       
guaranty sr. unsec. unsub. notes 5 3/8s, 2026     5,000   5,150 
Goodyear Tire & Rubber Co. (The) company       
guaranty sr. unsec. notes 5s, 2026     5,000   5,094 
Gray Television, Inc. company guaranty sr. unsec.       
sub. notes 7 1/2s, 2020     23,000   23,978 
Great Canadian Gaming Corp. 144A company       
guaranty sr. unsec. notes 6 5/8s, 2022 (Canada)   CAD 27,000   21,317 
Hanesbrands, Inc. 144A company       
guaranty sr. unsec. unsub. notes 4 5/8s, 2024     $10,000   10,025 
Historic TW, Inc. company guaranty sr. unsec.       
unsub. bonds 9.15s, 2023     40,000   53,767 
Host Hotels & Resorts LP sr. unsec.       
unsub. notes 6s, 2021 R     31,000   35,134 
Host Hotels & Resorts LP sr. unsec.       
unsub. notes 5 1/4s, 2022 R     44,000   48,373 
Howard Hughes Corp. (The) 144A sr. unsec.       
notes 6 7/8s, 2021     30,000   30,225 
Hyatt Hotels Corp. sr. unsec. unsub. notes 4.85s, 2026   55,000   59,817 
Hyatt Hotels Corp. sr. unsec.       
unsub. notes 3 3/8s, 2023     15,000   15,172 
iHeartCommunications, Inc. company       
guaranty sr. notes 9s, 2019     20,000   15,000 
Isle of Capri Casinos, Inc. company       
guaranty sr. unsec. notes 5 7/8s, 2021     7,000   7,263 
JC Penney Corp, Inc. company guaranty sr. unsec.       
bonds 8 1/8s, 2019     10,000   10,347 
JC Penney Corp, Inc. company guaranty sr. unsec.       
unsub. notes 5.65s, 2020     25,000   23,500 
JC Penney Corp, Inc. 144A company       
guaranty sr. notes 5 7/8s, 2023     5,000   5,031 
Jo-Ann Stores Holdings, Inc. 144A sr. unsec.       
notes 9 3/4s, 2019 ‡‡     15,000   13,125 
Jo-Ann Stores, Inc. 144A sr. unsec. notes 8 1/8s, 2019   30,000   28,725 
Johnson Controls, Inc. sr. unsec.       
unsub. notes 4.95s, 2064     65,000   64,797 
L Brands, Inc. company guaranty sr. unsec.       
notes 6 5/8s, 2021     13,000   14,658 
L Brands, Inc. company guaranty sr. unsec.       
sub. notes 5 5/8s, 2022     7,000   7,525 
Lamar Media Corp. company guaranty sr. unsec.       
sub. notes 5 7/8s, 2022     14,000   14,560 
Lamar Media Corp. company guaranty sr. unsec.       
sub. notes 5 3/8s, 2024     15,000   15,525 
Lear Corp. company guaranty sr. unsec.       
unsub. notes 5 3/8s, 2024     20,000   21,050 
Lennar Corp. company guaranty sr. unsec.       
notes 4 1/2s, 2019     7,000   7,265 

 

CORPORATE BONDS AND NOTES (18.6%)* cont.   Principal amount   Value 
 
Consumer cyclicals cont.     
Lennar Corp. company guaranty sr. unsec.     
unsub. notes 4 3/4s, 2022   $22,000   $22,358 
Lennar Corp. company guaranty sr. unsec.     
unsub. notes 4 3/4s, 2021   10,000   10,400 
LIN Television Corp. company guaranty sr. unsec.     
unsub. notes 5 7/8s, 2022   5,000   5,025 
Macy’s Retail Holdings, Inc. company     
guaranty sr. unsec. notes 6.9s, 2029   30,000   32,967 
Masonite International Corp. 144A company     
guaranty sr. unsec. notes 5 5/8s, 2023   15,000   15,563 
Mattamy Group Corp. 144A sr. unsec. notes 6 1/2s,     
2020 (Canada)   20,000   19,200 
MGM Growth Properties Operating Partnership     
LP/MGP Escrow Co-Issuer, Inc. 144A company     
guaranty sr. unsec. notes 5 5/8s, 2024   5,000   5,288 
MGM Resorts International company     
guaranty sr. unsec. notes 6 3/4s, 2020   35,000   38,238 
MGM Resorts International company     
guaranty sr. unsec. notes 5 1/4s, 2020   5,000   5,250 
MGM Resorts International company     
guaranty sr. unsec. unsub. notes 8 5/8s, 2019   10,000   11,230 
MGM Resorts International company     
guaranty sr. unsec. unsub. notes 6 5/8s, 2021   15,000   16,200 
Navistar International Corp. company     
guaranty sr. unsec. notes 8 1/4s, 2021   19,000   13,348 
Neiman Marcus Group, LLC (The) company     
guaranty sr. notes 7 1/8s, 2028   20,000   18,100 
Neiman Marcus Group, Ltd. 144A company     
guaranty sr. unsec. sub. notes 8 3/4s, 2021 ‡‡   25,000   19,000 
Neiman Marcus Group, Ltd. 144A company     
guaranty sr. unsec. sub. notes 8s, 2021   10,000   8,150 
Nielsen Co. Luxembourg Sarl (The) 144A company     
guaranty sr. unsec. sub. notes 5 1/2s, 2021     
(Luxembourg)   15,000   15,525 
Nortek, Inc. company guaranty sr. unsec.     
sub. notes 8 1/2s, 2021   25,000   25,938 
O’Reilly Automotive, Inc. company     
guaranty sr. unsec. notes 3.85s, 2023   20,000   21,523 
O’Reilly Automotive, Inc. company     
guaranty sr. unsec. sub. notes 3.55s, 2026   20,000   20,970 
Omnicom Group, Inc. company guaranty sr. unsec.     
unsub. notes 3.6s, 2026   85,000   89,525 
Outfront Media Capital, LLC/Outfront Media     
Capital Corp. company guaranty sr. unsec.     
sub. notes 5 7/8s, 2025   10,000   10,300 
Outfront Media Capital, LLC/Outfront Media     
Capital Corp. company guaranty sr. unsec.     
sub. notes 5 5/8s, 2024   7,000   7,193 
Penn National Gaming, Inc. sr. unsec.     
sub. notes 5 7/8s, 2021   23,000   23,403 
Penske Automotive Group, Inc. company     
guaranty sr. unsec. sub. notes 5 1/2s, 2026   10,000   9,500 
Penske Automotive Group, Inc. company     
guaranty sr. unsec. sub. notes 5 3/4s, 2022   14,000   14,000 
Penske Automotive Group, Inc. company     
guaranty sr. unsec. sub. notes 5 3/8s, 2024   10,000   9,650 
Priceline Group, Inc. (The) sr. unsec.     
notes 3.65s, 2025   46,000   48,729 
PulteGroup, Inc. company guaranty sr. unsec.     
unsub. notes 7 7/8s, 2032   20,000   22,650 
PulteGroup, Inc. company guaranty sr. unsec.     
unsub. notes 5 1/2s, 2026   25,000   25,625 

 

Putnam VT Global Asset Allocation Fund  17 

 


CORPORATE BONDS AND NOTES (18.6%)* cont.   Principal amount   Value 
 
Consumer cyclicals cont.       
Regal Entertainment Group sr. unsec.       
sub. notes 5 3/4s, 2023     $9,000   $9,068 
Regal Entertainment Group sr. unsec.       
sub. notes 5 3/4s, 2022     13,000   13,293 
Rivers Pittsburgh Borrower LP/Rivers Pittsburgh       
Finance Corp. 144A sr. notes 9 1/2s, 2019     19,000   19,475 
ROC Finance, LLC/ROC Finance 1 Corp. 144A       
notes 12 1/8s, 2018     24,000   24,870 
Sabre GLBL, Inc. 144A company       
guaranty sr. notes 5 3/8s, 2023     15,000   15,338 
Scientific Games International, Inc. company       
guaranty sr. unsec. notes 10s, 2022     55,000   44,688 
Scientific Games International, Inc. company       
guaranty sr. unsec. sub. notes 6 1/4s, 2020     5,000   3,163 
Scientific Games International, Inc. 144A company     
guaranty sr. notes 7s, 2022     15,000   15,075 
Sinclair Television Group, Inc. company       
guaranty sr. unsec. sub. notes 6 3/8s, 2021     13,000   13,650 
Sinclair Television Group, Inc. company       
guaranty sr. unsec. sub. notes 5 3/8s, 2021     7,000   7,210 
Sinclair Television Group, Inc. 144A company       
guaranty sr. unsec. sub. notes 5 5/8s, 2024     5,000   5,113 
Sirius XM Radio, Inc. 144A company       
guaranty sr. unsec. sub. notes 6s, 2024     10,000   10,338 
Six Flags Entertainment Corp. 144A company       
guaranty sr. unsec. unsub. notes 5 1/4s, 2021     27,000   27,844 
Spectrum Brands, Inc. company guaranty sr. unsec.     
notes 5 3/4s, 2025     10,000   10,413 
Spectrum Brands, Inc. company guaranty sr. unsec.     
sub. notes 6 3/8s, 2020     3,000   3,131 
Spectrum Brands, Inc. company guaranty sr. unsec.     
unsub. notes 6 1/8s, 2024     10,000   10,550 
Standard Industries, Inc. 144A sr. unsec.       
notes 5 3/8s, 2024     25,000   25,438 
SugarHouse HSP Gaming Prop. Mezz LP/SugarHouse     
HSP Gaming Finance Corp. 144A sr. notes 6 3/8s, 2021   12,000   11,880 
Taylor Morrison Communities, Inc./Monarch       
Communities, Inc. 144A company       
guaranty sr. unsec. notes 5 1/4s, 2021     7,000   6,983 
Taylor Morrison Communities, Inc./Monarch       
Communities, Inc. 144A company       
guaranty sr. unsec. sub. notes 5 5/8s, 2024     7,000   6,834 
TEGNA, Inc. company guaranty sr. unsec.       
bonds 5 1/8s, 2019     3,000   3,086 
TEGNA, Inc. 144A company guaranty sr. unsec.       
unsub. notes 4 7/8s, 2021     15,000   15,375 
Tempur Sealy International, Inc. 144A company       
guaranty sr. unsec. unsub. bonds 5 1/2s, 2026     10,000   9,825 
Tiffany & Co. sr. unsec. unsub. notes 4.9s, 2044     55,000   54,993 
Time Warner, Inc. company guaranty sr. unsec.       
unsub. bonds 2.95s, 2026     100,000   100,754 
Townsquare Media, Inc. 144A company       
guaranty sr. unsec. notes 6 1/2s, 2023     5,000   4,944 
Tribune Media Co. company guaranty sr. unsec.       
notes 5 7/8s, 2022     10,000   9,950 
TRW Automotive, Inc. 144A company       
guaranty sr. unsec. notes 4 1/2s, 2021     4,000   4,030 
Univision Communications, Inc. 144A company       
guaranty sr. sub. notes 5 1/8s, 2025     15,000   14,831 
Univision Communications, Inc. 144A company       
guaranty sr. unsec. notes 8 1/2s, 2021     10,000   10,450 
Viacom, Inc. sr. unsec. unsub. notes 4 1/2s, 2021   70,000   75,741 

 

CORPORATE BONDS AND NOTES (18.6%)* cont.   Principal amount   Value 
 
Consumer cyclicals cont.       
Vulcan Materials Co. sr. unsec.       
unsub. notes 4 1/2s, 2025     $10,000   $10,675 
Wal-Mart Stores, Inc. sr. unsec.       
unsub. notes 6 1/2s, 2037     67,000   97,102 
Wal-Mart Stores, Inc. sr. unsec. unsub. notes 5s, 2040   10,000   12,530 
Walt Disney Co. (The) sr. unsec. notes 2 3/4s, 2021   30,000   31,951 
Walt Disney Co. (The) sr. unsec.       
unsub. notes 4 3/8s, 2041     10,000   11,634 
Wyndham Worldwide Corp. sr. unsec.       
unsub. notes 5 5/8s, 2021     35,000   39,076 
      3,630,838 
Consumer staples (1.5%)       
1011778 BC ULC/New Red Finance, Inc. 144A company     
guaranty notes 6s, 2022 (Canada)     30,000   31,116 
1011778 BC ULC/New Red Finance, Inc. 144A company     
guaranty sr. notes 4 5/8s, 2022 (Canada)     5,000   5,075 
Altria Group, Inc. company guaranty sr. unsec.       
notes 9 1/4s, 2019     2,000   2,466 
Altria Group, Inc. company guaranty sr. unsec.       
unsub. notes 4s, 2024     24,000   26,849 
Altria Group, Inc. company guaranty sr. unsec.       
unsub. notes 2.85s, 2022     95,000   99,521 
Anheuser-Busch InBev Finance, Inc. company       
guaranty sr. unsec. unsub. bonds 4.9s, 2046     122,000   142,965 
Anheuser-Busch InBev Finance, Inc. company       
guaranty sr. unsec. unsub. bonds 3.65s, 2026     48,000   51,420 
Anheuser-Busch InBev Finance, Inc. company       
guaranty sr. unsec. unsub. notes 2.65s, 2021     80,000   82,961 
Anheuser-Busch InBev Finance, Inc. company       
guaranty sr. unsec. unsub. notes 1 1/4s, 2018     47,000   47,046 
Anheuser-Busch InBev Worldwide, Inc. company       
guaranty sr. unsec. unsub. notes 8.2s, 2039     80,000   127,500 
Anheuser-Busch InBev Worldwide, Inc. company       
guaranty sr. unsec. unsub. notes 2 1/2s, 2022     60,000   61,042 
Avis Budget Car Rental, LLC/Avis Budget       
Finance, Inc. company guaranty sr. unsec.       
unsub. notes 5 1/2s, 2023     17,000   16,745 
BlueLine Rental Finance Corp. 144A notes 7s, 2019   23,000   19,780 
Bunge, Ltd. Finance Corp. company       
guaranty sr. unsec. notes 8 1/2s, 2019     4,000   4,677 
Cargill, Inc. 144A sr. unsec. notes 4.1s, 2042     65,000   68,237 
CEC Entertainment, Inc. company       
guaranty sr. unsec. sub. notes 8s, 2022     20,000   19,350 
ConAgra Foods, Inc. sr. unsec. notes 7s, 2019     24,000   27,127 
Constellation Brands, Inc. company       
guaranty sr. unsec. unsub. notes 7 1/4s, 2016     20,000   20,125 
Constellation Brands, Inc. company       
guaranty sr. unsec. unsub. notes 6s, 2022     10,000   11,175 
Corrections Corp. of America company       
guaranty sr. unsec. notes 4 5/8s, 2023 R     24,000   24,180 
Corrections Corp. of America company       
guaranty sr. unsec. sub. notes 4 1/8s, 2020 R     4,000   4,115 
CVS Health Corp. sr. unsec. notes 4 3/4s, 2022     40,000   45,689 
CVS Health Corp. sr. unsec. unsub. notes 2 1/4s, 2018   130,000   132,981 
CVS Pass-Through Trust sr. notes 6.036s, 2028     3,590   4,054 
CVS Pass-Through Trust 144A sr. mtge.       
notes 4.704s, 2036     46,679   46,904 
Dean Foods Co. 144A company guaranty sr. unsec.     
notes 6 1/2s, 2023     15,000   15,469 
Diageo Capital PLC company guaranty sr. unsec.       
unsub. notes 1 1/2s, 2017 (United Kingdom)     29,000   29,122 

 

18  Putnam VT Global Asset Allocation Fund 

 


CORPORATE BONDS AND NOTES (18.6%)* cont.   Principal amount   Value 
 
Consumer staples cont.       
Diageo Investment Corp. company       
guaranty sr. unsec. notes 8s, 2022     $40,000   $52,906 
ERAC USA Finance, LLC 144A company       
guaranty sr. unsec. notes 7s, 2037     50,000   68,119 
ERAC USA Finance, LLC 144A company       
guaranty sr. unsec. notes 5 5/8s, 2042     60,000   72,746 
ERAC USA Finance, LLC 144A company       
guaranty sr. unsec. notes 3.85s, 2024     23,000   24,724 
JBS USA, LLC/JBS USA Finance, Inc. 144A company     
guaranty sr. unsec. notes 7 1/4s, 2021 (Brazil)     10,000   10,350 
JBS USA, LLC/JBS USA Finance, Inc. 144A company     
guaranty sr. unsec. notes 7 1/4s, 2021 (Brazil)     5,000   5,175 
JBS USA, LLC/JBS USA Finance, Inc. 144A       
sr. unsec. notes 8 1/4s, 2020 (Brazil)     7,000   7,245 
Kellogg Co. sr. unsec. unsub. notes 3 1/4s, 2026     70,000   71,955 
KFC Holding Co./Pizza Hut Holdings, LLC/Taco Bell     
of America, LLC 144A company guaranty sr. unsec.     
notes 5 1/4s, 2026     15,000   15,375 
KFC Holding Co./Pizza Hut Holdings, LLC/Taco Bell     
of America, LLC 144A company guaranty sr. unsec.     
notes 5s, 2024     15,000   15,263 
Kraft Foods Group, Inc. company       
guaranty sr. unsec. notes Ser. 144A, 6 7/8s, 2039   15,000   20,482 
Kraft Foods Group, Inc. company       
guaranty sr. unsec. unsub. notes 6 1/2s, 2040     70,000   92,199 
Kroger Co. (The) company guaranty sr. unsec.       
unsub. notes 6.9s, 2038     85,000   118,357 
Landry’s Holdings II, Inc. 144A sr. unsec.       
notes 10 1/4s, 2018     5,000   5,050 
McDonald’s Corp. sr. unsec. unsub. notes 6.3s, 2037   51,000   67,529 
McDonald’s Corp. sr. unsec. unsub. notes 5.7s, 2039   59,000   73,311 
Newell Brands, Inc. sr. unsec. unsub. notes 4.2s, 2026   45,000   48,782 
PepsiCo, Inc. sr. unsec. unsub. notes 7.9s, 2018     58,000   67,083 
Pilgrim’s Pride Corp. 144A company       
guaranty sr. unsec. notes 5 3/4s, 2025     10,000   9,975 
Prestige Brands, Inc. 144A company       
guaranty sr. unsec. notes 5 3/8s, 2021     12,000   12,090 
Revlon Consumer Products Corp. company       
guaranty sr. unsec. sub. notes 5 3/4s, 2021     23,000   22,195 
Rite Aid Corp. 144A company guaranty sr. unsec.       
unsub. notes 6 1/8s, 2023     20,000   21,350 
Vander Intermediate Holding II Corp. 144A       
sr. unsec. notes 9 3/4s, 2019 ‡‡     5,000   2,675 
Walgreens Boots Alliance, Inc. sr. unsec.       
unsub. notes 3.3s, 2021     60,000   62,901 
WhiteWave Foods Co. (The) company       
guaranty sr. unsec. notes 5 3/8s, 2022     5,000   5,350 
      2,140,878 
Energy (1.5%)       
Anadarko Petroleum Corp. sr. unsec. notes 6.45s, 2036   10,000   11,521 
Anadarko Petroleum Corp. sr. unsec.       
unsub. bonds 6.95s, 2019     30,000   33,245 
Anadarko Petroleum Corp. sr. unsec.       
unsub. notes 5.55s, 2026     15,000   16,596 
Antero Resources Corp. company       
guaranty sr. unsec. notes 5 5/8s, 2023     5,000   4,850 
Antero Resources Corp. company       
guaranty sr. unsec. sub. notes 5 1/8s, 2022     8,000   7,680 
Antero Resources Finance Corp. company       
guaranty sr. unsec. sub. notes 5 3/8s, 2021     13,000   12,708 
Apache Corp. sr. unsec. unsub. notes 5.1s, 2040     5,000   5,226 
Apache Corp. sr. unsec. unsub. notes 3 1/4s, 2022   44,000   45,074 

 

CORPORATE BONDS AND NOTES (18.6%)* cont.   Principal amount   Value 
 
Energy cont.     
Archrock Partners LP/Archrock Partners     
Finance Corp. company guaranty sr. unsec.     
notes 6s, 2022   $27,000   $23,895 
Baytex Energy Corp. 144A company     
guaranty sr. unsec. sub. notes 5 5/8s, 2024     
(Canada)   10,000   8,050 
BP Capital Markets PLC company     
guaranty sr. unsec. bonds 3.119s, 2026     
(United Kingdom)   70,000   71,231 
BP Capital Markets PLC company     
guaranty sr. unsec. unsub. notes 1.846s, 2017     
(United Kingdom)   130,000   130,735 
California Resources Corp. 144A company     
guaranty notes 8s, 2022   26,000   18,460 
Canadian Natural Resources, Ltd. sr. unsec.     
unsub. notes 5.7s, 2017 (Canada)   235,000   241,756 
Cenovus Energy, Inc. sr. unsec. bonds 4.45s, 2042     
(Canada)   5,000   3,979 
Chesapeake Energy Corp. 144A company     
guaranty notes 8s, 2022   15,000   12,713 
Concho Resources, Inc. company     
guaranty sr. unsec. notes 5 1/2s, 2023   17,000   17,043 
Concho Resources, Inc. company     
guaranty sr. unsec. unsub. notes 5 1/2s, 2022   10,000   10,050 
ConocoPhillips Co. company guaranty sr. unsec.     
unsub. notes 1.05s, 2017   130,000   129,198 
Continental Resources, Inc. company     
guaranty sr. unsec. notes 3.8s, 2024   5,000   4,363 
Continental Resources, Inc. company     
guaranty sr. unsec. sub. notes 5s, 2022   10,000   9,775 
Continental Resources, Inc. company     
guaranty sr. unsec. unsub. notes 4 1/2s, 2023   15,000   13,988 
DCP Midstream Operating LP company     
guaranty sr. unsec. notes 2.7s, 2019   10,000   9,582 
Denbury Resources, Inc. company     
guaranty sr. unsec. sub. notes 6 3/8s, 2021   5,000   3,450 
Denbury Resources, Inc. 144A company     
guaranty notes 9s, 2021   17,000   17,000 
Devon Financing Company, LLC company     
guaranty sr. unsec. unsub. bonds 7 7/8s, 2031   15,000   17,455 
EP Energy, LLC/Everest Acquisition Finance, Inc.     
company guaranty sr. unsec. notes 6 3/8s, 2023   5,000   3,000 
EP Energy, LLC/Everest Acquisition Finance, Inc.     
company guaranty sr. unsec. sub. notes 9 3/8s, 2020   32,000   22,640 
EQT Midstream Partners LP company     
guaranty sr. unsec. sub. notes 4s, 2024   10,000   9,605 
Halcon Resources Corp. company     
guaranty sr. unsec. notes 9 3/4s, 2020   4,000   900 
Halcon Resources Corp. company     
guaranty sr. unsec. unsub. notes 8 7/8s, 2021   38,000   7,600 
Halcon Resources Corp. 144A company     
guaranty notes 8 5/8s, 2020   10,000   9,450 
Hess Corp. sr. unsec. unsub. notes 7.3s, 2031   40,000   45,934 
Kerr-McGee Corp. company guaranty sr. unsec.     
unsub. notes 7 7/8s, 2031   10,000   11,915 
Key Energy Services, Inc. company     
guaranty sr. unsec. unsub. notes 6 3/4s,     
2021 (In default) †   4,000   1,600 
Laredo Petroleum, Inc. company     
guaranty sr. unsec. notes 7 3/8s, 2022   20,000   20,050 
Lightstream Resources, Ltd. 144A sr. unsec.     
notes 8 5/8s, 2020 (Canada) (In default) †   18,000   1,260 

 

Putnam VT Global Asset Allocation Fund  19 

 


CORPORATE BONDS AND NOTES (18.6%)* cont.   Principal amount   Value 
 
Energy cont.       
Linn Energy, LLC/Linn Energy Finance Corp. 144A     
company guaranty notes 12s, 2020 (In default) †     $40,000   $13,700 
Lone Pine Resources Canada, Ltd. escrow company     
guaranty sr. unsec. notes 10 3/8s, 2017 (Canada) F   20,000   1 
Marathon Oil Corp. sr. unsec. unsub. notes 3.85s, 2025   5,000   4,594 
Marathon Petroleum Corp. sr. unsec.       
unsub. notes 6 1/2s, 2041     25,000   26,549 
MEG Energy Corp. 144A company guaranty sr. unsec.     
notes 7s, 2024 (Canada)     10,000   7,700 
MEG Energy Corp. 144A company guaranty sr. unsec.     
notes 6 1/2s, 2021 (Canada)     5,000   3,875 
Milagro Oil & Gas, Inc. company       
guaranty notes 10 1/2s, 2017 (In default) †     45,000   15,863 
Motiva Enterprises, LLC 144A sr. unsec.       
notes 5 3/4s, 2020     55,000   60,064 
Newfield Exploration Co. sr. unsec.       
unsub. notes 5 3/4s, 2022     35,000   35,263 
Newfield Exploration Co. sr. unsec.       
unsub. notes 5 3/8s, 2026     10,000   9,725 
Noble Holding International, Ltd. company       
guaranty sr. unsec. unsub. notes 6.05s, 2041     85,000   51,850 
Oasis Petroleum, Inc. company guaranty sr. unsec.     
sub. notes 6 7/8s, 2023     10,000   9,050 
Oasis Petroleum, Inc. company guaranty sr. unsec.     
unsub. notes 6 7/8s, 2022     30,000   27,713 
Petrobras Global Finance BV company       
guaranty sr. unsec. unsub. notes 6 1/4s, 2024       
(Brazil)     235,000   208,269 
Petroleos de Venezuela SA sr. unsec.       
notes 5 1/8s, 2016 (Venezuela)     45,000   40,556 
Petroleos de Venezuela SA 144A company       
guaranty sr. unsec. notes 8 1/2s, 2017       
(Venezuela)     82,000   57,400 
Petroleos de Venezuela SA 144A company       
guaranty sr. unsec. notes 6s, 2026 (Venezuela)     40,000   13,948 
Petroleos Mexicanos company guaranty sr. unsec.     
unsub. bonds 5 5/8s, 2046 (Mexico)     25,000   22,788 
Petroleos Mexicanos company guaranty sr. unsec.     
unsub. notes 6 3/8s, 2045 (Mexico)     80,000   80,400 
Petroleos Mexicanos company guaranty sr. unsec.     
unsub. notes 4 7/8s, 2024 (Mexico)     80,000   81,104 
Petroleos Mexicanos company guaranty sr. unsec.     
unsub. notes 4 1/2s, 2026 (Mexico)     23,000   22,135 
Range Resources Corp. company guaranty sr. unsec.     
sub. notes 5 3/4s, 2021     15,000   14,663 
Rose Rock Midstream LP/Rose Rock Finance Corp.     
company guaranty sr. unsec. sub. notes 5 5/8s, 2023   10,000   8,700 
Rose Rock Midstream LP/Rose Rock Finance Corp.     
company guaranty sr. unsec. sub. notes 5 5/8s, 2022   5,000   4,400 
Sabine Pass Liquefaction, LLC 144A       
sr. notes 5 7/8s, 2026     15,000   15,056 
Sabine Pass LNG LP company       
guaranty sr. sub. notes 6 1/2s, 2020     7,000   7,284 
Samson Investment Co. company guaranty sr. unsec.     
notes 9 3/4s, 2020 (In default) †     43,000   860 
SandRidge Energy, Inc. 144A company       
guaranty notes 8 3/4s, 2020 (In default) †     20,000   8,200 
Seven Generations Energy, Ltd. 144A sr. unsec.       
bonds 6 3/4s, 2023 (Canada)     10,000   10,100 
Seven Generations Energy, Ltd. 144A sr. unsec.       
sub. notes 8 1/4s, 2020 (Canada)     19,000   19,689 

 

CORPORATE BONDS AND NOTES (18.6%)* cont.   Principal amount   Value 
 
Energy cont.     
Seventy Seven Energy, Inc. sr. unsec.     
sub. notes 6 1/2s, 2022 (In default) †   $5,000   $300 
Seventy Seven Operating, LLC company     
guaranty sr. unsec. unsub. notes 6 5/8s,     
2019 (In default) †   20,000   10,000 
Shell International Finance BV company     
guaranty sr. unsec. unsub. notes 5.2s, 2017     
(Netherlands)   105,000   108,278 
SM Energy Co. sr. unsec. notes 6 1/2s, 2021   7,000   6,563 
SM Energy Co. sr. unsec. sub. notes 5s, 2024   10,000   8,550 
SM Energy Co. sr. unsec. unsub. notes 6 1/2s, 2023   13,000   12,025 
SM Energy Co. sr. unsec. unsub. notes 6 1/8s, 2022   10,000   9,188 
Statoil ASA company guaranty sr. unsec.     
notes 5.1s, 2040 (Norway)   40,000   47,910 
Tervita Corp. 144A sr. unsec. notes 10 7/8s, 2018     
(Canada) (In default) †   4,000   1,020 
Triangle USA Petroleum Corp. 144A company     
guaranty sr. unsec. notes 6 3/4s, 2022   5,000   1,150 
Unit Corp. company guaranty sr. unsec.     
sub. notes 6 5/8s, 2021   4,000   3,090 
Western Gas Partners LP sr. unsec.     
unsub. notes 4.65s, 2026   5,000   4,990 
Whiting Petroleum Corp. company     
guaranty sr. unsec. unsub. notes 5 3/4s, 2021   6,000   5,430 
Whiting Petroleum Corp. company     
guaranty sr. unsec. unsub. notes 5s, 2019   10,000   9,200 
Williams Cos., Inc. (The) sr. unsec.     
sub. notes 4.55s, 2024   50,000   45,925 
Williams Cos., Inc. (The) sr. unsec.     
unsub. notes 7 7/8s, 2021   3,000   3,225 
Williams Cos., Inc. (The) sr. unsec.     
unsub. notes 7 3/4s, 2031   1,000   1,010 
Williams Cos., Inc. (The) sr. unsec.     
unsub. notes 3.7s, 2023   5,000   4,425 
Williams Partners LP sr. unsec. sub. notes 4.3s, 2024   15,000   14,119 
Williams Partners LP/ACMP Finance Corp. company     
guaranty sr. unsec. unsub. notes 6 1/8s, 2022   7,000   7,181 
Williams Partners LP/ACMP Finance Corp.     
sr. unsec. unsub. notes 4 7/8s, 2023   17,000   16,405 
WPX Energy, Inc. sr. unsec. notes 7 1/2s, 2020   5,000   4,991 
WPX Energy, Inc. sr. unsec. unsub. notes 6s, 2022   37,000   34,410 
    2,254,461 
Financials (5.2%)     
Aflac, Inc. sr. unsec. unsub. notes 6.9s, 2039   45,000   63,334 
Air Lease Corp. sr. unsec. notes 3 3/4s, 2022   10,000   10,243 
Air Lease Corp. sr. unsec. unsub. notes 3 3/8s, 2021   30,000   30,749 
Alliance Data Systems Corp. 144A company     
guaranty sr. unsec. notes 5 3/8s, 2022   15,000   14,363 
Ally Financial, Inc. company guaranty sr. unsec.     
notes 8s, 2031   24,000   27,780 
Ally Financial, Inc. company guaranty sr. unsec.     
unsub. notes 8s, 2020   13,000   14,625 
Ally Financial, Inc. company guaranty sr. unsec.     
unsub. notes 7 1/2s, 2020   10,000   11,150 
Ally Financial, Inc. company guaranty sr. unsec.     
unsub. notes 6 1/4s, 2017   17,000   17,808 
Ally Financial, Inc. sub. unsec. notes 5 3/4s, 2025   40,000   40,100 
Ally Financial, Inc. unsec. sub. notes 8s, 2018   14,000   15,295 
American Express Co. jr. unsec. sub. FRN Ser. C,     
4.9s, perpetual maturity   10,000   9,438 
American Express Co. sr. unsec. notes 7s, 2018   83,000   90,663 
American Express Co. sr. unsec. notes 6.15s, 2017   49,000   51,710 

 

20  Putnam VT Global Asset Allocation Fund 

 


CORPORATE BONDS AND NOTES (18.6%)* cont.   Principal amount   Value 
 
Financials cont.       
American International Group, Inc. jr. unsec.       
sub. FRB 8.175s, 2058     $56,000   $70,388 
AXA SA 144A jr. unsec. sub. FRN 6.463s, perpetual     
maturity (France)     85,000   88,311 
Bank of America Corp. jr. unsec. sub. FRN       
Ser. AA, 6.1s, perpetual maturity     46,000   46,690 
Bank of America Corp. jr. unsec. sub. FRN Ser. Z,       
6 1/2s, perpetual maturity     5,000   5,325 
Bank of America Corp. sr. unsec. unsub. notes 2s, 2018   128,000   128,818 
Bank of America Corp. unsec. sub. notes 6.11s, 2037   195,000   231,219 
Bank of Montreal sr. unsec.       
unsub. notes Ser. MTN, 2 1/2s, 2017 (Canada)     128,000   128,935 
Bank of New York Mellon Corp. (The) sr. unsec.       
unsub. notes 1.969s, 2017     105,000   105,916 
Bank of Nova Scotia (The) sr. unsec.       
unsub. notes 1 3/8s, 2017 (Canada)     130,000   130,412 
Barclays Bank PLC 144A unsec. sub. notes 10.179s,     
2021 (United Kingdom)     95,000   119,750 
BBVA International Preferred SAU company       
guaranty jr. unsec. sub. FRB 5.919s, perpetual       
maturity (Spain)     95,000   94,763 
Bear Stearns Cos., LLC (The) sr. unsec.       
unsub. notes 7 1/4s, 2018     22,000   23,982 
Berkshire Hathaway Finance Corp. company       
guaranty sr. unsec. notes 4.3s, 2043     29,000   31,987 
BNP Paribas SA company guaranty sr. unsec.       
unsub. bonds Ser. MTN, 1 3/8s, 2017 (France)     140,000   140,701 
BNP Paribas SA sr. unsec. notes Ser. MTN, 2 3/8s,       
2017 (France)     40,000   40,580 
Camden Property Trust sr. unsec.       
unsub. notes 4 7/8s, 2023 R     65,000   72,947 
Cantor Fitzgerald LP 144A unsec. bonds 7 7/8s, 2019   30,000   33,669 
Cantor Fitzgerald LP 144A unsec. notes 6 1/2s, 2022   55,000   58,059 
CBRE Services, Inc. company guaranty sr. unsec.       
notes 5 1/4s, 2025     5,000   5,207 
CBRE Services, Inc. company guaranty sr. unsec.       
unsub. notes 5s, 2023     13,000   13,459 
CIT Group, Inc. sr. unsec. notes 3 7/8s, 2019     7,000   7,035 
CIT Group, Inc. sr. unsec. sub. notes 5s, 2023     10,000   10,125 
CIT Group, Inc. sr. unsec. unsub. notes 5 3/8s, 2020   14,000   14,595 
CIT Group, Inc. sr. unsec. unsub. notes 5 1/4s, 2018   13,000   13,394 
CIT Group, Inc. sr. unsec. unsub. notes 5s, 2022     17,000   17,298 
CIT Group, Inc. 144A sr. unsec. notes 6 5/8s, 2018   24,000   25,320 
CIT Group, Inc. 144A sr. unsec. notes 5 1/2s, 2019   17,000   17,786 
Citigroup, Inc. jr. unsec. sub. FRB Ser. P,       
5.95s, perpetual maturity     20,000   19,550 
Citigroup, Inc. jr. unsec. sub. FRN 5 7/8s,       
perpetual maturity     9,000   8,640 
CNO Financial Group, Inc. sr. unsec.       
unsub. notes 5 1/4s, 2025     30,000   30,900 
CNO Financial Group, Inc. sr. unsec.       
unsub. notes 4 1/2s, 2020     10,000   10,350 
Cooperatieve Centrale Raiffeisen-Boerenleenbank     
BA/Netherlands (Rabobank Nederland) company     
guaranty sr. unsec. notes 3 3/8s, 2017       
(Netherlands)     116,000   117,500 
Credit Acceptance Corp. company       
guaranty sr. unsec. notes 7 3/8s, 2023     5,000   4,800 
Credit Acceptance Corp. company       
guaranty sr. unsec. notes 6 1/8s, 2021     13,000   12,383 
DDR Corp. sr. unsec. unsub. notes 7 7/8s, 2020 R     25,000   30,191 

 

CORPORATE BONDS AND NOTES (18.6%)* cont.   Principal amount   Value 
 
Financials cont.       
Deutsche Bank AG/London sr. unsec. notes 6s, 2017     
(United Kingdom)     $128,000   $133,550 
DFC Finance Corp. 144A company       
guaranty sr. notes 10 1/2s, 2020     15,000   9,000 
Duke Realty LP company guaranty sr. unsec.       
unsub. notes 4 3/8s, 2022 R     32,000   34,771 
E*Trade Financial Corp. sr. unsec.       
unsub. notes 5 3/8s, 2022     10,000   10,550 
E*Trade Financial Corp. sr. unsec.       
unsub. notes 4 5/8s, 2023     10,000   10,125 
EPR Properties company guaranty sr. unsec.       
sub. notes 5 1/4s, 2023 R     65,000   68,783 
ESH Hospitality, Inc. 144A company       
guaranty sr. unsec. notes 5 1/4s, 2025 R     15,000   14,606 
Fairfax US, Inc. 144A company guaranty sr. unsec.     
notes 4 7/8s, 2024     30,000   30,338 
Fifth Third Bancorp jr. unsec. sub. FRB 5.1s,       
perpetual maturity     20,000   18,600 
Five Corners Funding Trust 144A sr. unsec.       
bonds 4.419s, 2023     135,000   146,430 
GE Capital International Funding Co.       
Unlimited Co. 144A company guaranty sr. unsec.       
notes 4.418s, 2035 (Ireland)     202,000   226,560 
Genworth Holdings, Inc. company guaranty jr.       
unsec. sub. FRN 6.15s, 2066     65,000   21,450 
Goldman Sachs Group, Inc. (The) sr. unsec.       
notes 7 1/2s, 2019     170,000   194,419 
Goldman Sachs Group, Inc. (The) sr. unsec.       
unsub. notes Ser. GLOB, 2 3/8s, 2018     130,000   131,747 
Goldman Sachs Group, Inc. (The) unsec.       
sub. notes 6 3/4s, 2037     24,000   29,592 
Hartford Financial Services Group, Inc. (The)       
sr. unsec. unsub. notes 5 1/8s, 2022     35,000   39,757 
HCP, Inc. sr. unsec. notes 4 1/4s, 2023 R     70,000   72,647 
Healthcare Realty Trust, Inc. sr. unsec.       
unsub. notes 3 7/8s, 2025 R     30,000   30,184 
Hospitality Properties Trust sr. unsec.       
unsub. notes 4 1/2s, 2025 R     5,000   5,027 
HSBC Finance Corp. unsec. sub. notes 6.676s, 2021   146,000   163,594 
Hub Holdings, LLC/Hub Holdings Finance, Inc. 144A     
sr. unsec. sub. notes 8 1/8s, 2019 ‡‡     5,000   4,800 
HUB International, Ltd. 144A sr. unsec.       
notes 7 7/8s, 2021     20,000   19,200 
Icahn Enterprises LP/Icahn Enterprises       
Finance Corp. company guaranty sr. unsec.       
notes 6s, 2020     30,000   29,625 
Icahn Enterprises LP/Icahn Enterprises       
Finance Corp. company guaranty sr. unsec.       
notes 5 7/8s, 2022     17,000   16,025 
ING Bank NV 144A unsec. sub. notes 5.8s, 2023       
(Netherlands)     200,000   219,714 
International Lease Finance Corp. sr. unsec.       
unsub. notes 6 1/4s, 2019     4,000   4,285 
International Lease Finance Corp. sr. unsec.       
unsub. notes 5 7/8s, 2022     14,000   15,085 
JPMorgan Chase & Co. jr. unsec. sub. FRB Ser. Z,       
5.3s, perpetual maturity     49,000   48,816 
JPMorgan Chase & Co. jr. unsec. sub. FRN 7.9s,       
perpetual maturity     90,000   91,800 
JPMorgan Chase & Co. sr. unsec. unsub. notes 2s, 2017   130,000   131,211 
KKR Group Finance Co. III, LLC 144A company       
guaranty sr. unsec. unsub. bonds 5 1/8s, 2044     30,000   30,315 

 

Putnam VT Global Asset Allocation Fund  21 

 


CORPORATE BONDS AND NOTES (18.6%)* cont.   Principal amount   Value 
 
Financials cont.       
Liberty Mutual Group, Inc. 144A company       
guaranty jr. unsec. sub. bonds 7.8s, 2037     $55,000   $59,950 
Lloyds Banking Group PLC 144A jr. unsec. sub. FRN     
6.657s, perpetual maturity (United Kingdom)     25,000   26,875 
Macquarie Bank, Ltd. 144A sr. unsec. notes 2.85s,     
2020 (Australia)     40,000   41,004 
Mid-America Apartments LP sr. unsec. notes 4.3s, 2023 R   75,000   80,658 
Morgan Stanley sr. unsec. unsub. bonds 4 3/4s, 2017   98,000   100,430 
MPT Operating Partnership LP/MPT Finance Corp.     
company guaranty sr. unsec. notes 6 3/8s, 2024 R   10,000   10,650 
MPT Operating Partnership LP/MPT Finance Corp.     
company guaranty sr. unsec. notes 6 3/8s, 2022 R   45,000   46,913 
MPT Operating Partnership LP/MPT Finance Corp.     
company guaranty sr. unsec. sub. notes 6 7/8s, 2021 R   10,000   10,325 
Nationstar Mortgage, LLC/Nationstar Capital Corp.     
company guaranty sr. unsec. unsub. notes 7 7/8s, 2020   30,000   28,125 
Nationstar Mortgage, LLC/Nationstar Capital Corp.     
company guaranty sr. unsec. unsub. notes 6 1/2s, 2021   15,000   12,825 
Nationwide Mutual Insurance Co. 144A unsec.       
sub. notes 8 1/4s, 2031     45,000   62,877 
Neuberger Berman Group, LLC/Neuberger Berman     
Finance Corp. 144A sr. unsec. notes 5 7/8s, 2022     30,000   31,313 
Neuberger Berman Group, LLC/Neuberger Berman     
Finance Corp. 144A sr. unsec. notes 4 7/8s, 2045     30,000   25,350 
Ocwen Financial Corp. sr. unsec. notes 6 5/8s, 2019   5,000   3,400 
OneAmerica Financial Partners, Inc. 144A       
sr. unsec. notes 7s, 2033     90,000   104,349 
OneMain Financial Holdings, LLC 144A company       
guaranty sr. unsec. sub. notes 6 3/4s, 2019     15,000   14,625 
OneMain Financial Holdings, LLC 144A company       
guaranty sr. unsec. unsub. notes 7 1/4s, 2021     10,000   9,700 
Peachtree Corners Funding Trust 144A company       
guaranty sr. unsec. unsub. bonds 3.976s, 2025     105,000   105,272 
PHH Corp. sr. unsec. unsub. notes 6 3/8s, 2021     4,000   3,555 
Primerica, Inc. sr. unsec. notes 4 3/4s, 2022     63,000   69,414 
Progressive Corp. (The) jr. unsec. sub. FRN 6.7s, 2037   65,000   59,638 
Provident Funding Associates LP/PFG Finance Corp.     
144A company guaranty sr. unsec. notes 6 3/4s, 2021   20,000   19,025 
Prudential Financial, Inc. jr. unsec. sub. FRN       
8 7/8s, 2038     30,000   33,000 
Prudential Financial, Inc. jr. unsec. sub. FRN       
5 5/8s, 2043     71,000   73,663 
Prudential Financial, Inc. jr. unsec. sub. FRN       
5.2s, 2044     25,000   24,375 
Realty Income Corp. sr. unsec. notes 4.65s, 2023 R   25,000   27,506 
Royal Bank of Canada sr. unsec.       
unsub. notes Ser. GMTN, 2.2s, 2018 (Canada)     130,000   132,553 
Royal Bank of Canada unsec. sub. notes Ser. GMTN,     
4.65s, 2026 (Canada)     45,000   48,148 
Royal Bank of Scotland Group PLC unsec.       
sub. bonds 5 1/8s, 2024 (United Kingdom)     125,000   121,888 
Royal Bank of Scotland Group PLC unsec.       
sub. notes 4.7s, 2018 (United Kingdom)     115,000   117,657 
Santander UK PLC sr. unsec. unsub. bonds 1 3/8s,     
2017 (United Kingdom)     140,000   139,658 
Select Income REIT sr. unsec. unsub. notes 3.6s, 2020 R   10,000   10,176 
Select Income REIT sr. unsec. unsub. notes 2.85s, 2018 R   10,000   10,078 
Simon Property Group LP sr. unsec.       
unsub. notes 3 3/8s, 2022 R     10,000   10,704 
Simon Property Group LP 144A sr. unsec.       
unsub. notes 1 1/2s, 2018 R     118,000   118,505 

 

CORPORATE BONDS AND NOTES (18.6%)* cont.   Principal amount   Value 
 
Financials cont.       
Springleaf Finance Corp. company       
guaranty sr. unsec. unsub. notes 8 1/4s, 2020     $20,000   $20,050 
Springleaf Finance Corp. company       
guaranty sr. unsec. unsub. notes 7 3/4s, 2021     10,000   9,625 
Springleaf Finance Corp. company       
guaranty sr. unsec. unsub. notes 6s, 2020     7,000   6,554 
Springleaf Finance Corp. sr. unsec.       
unsub. notes 5 1/4s, 2019     5,000   4,656 
Standard Chartered Bank 144A unsec.       
sub. notes 8s, 2031 (United Kingdom)     115,000   139,467 
State Street Capital Trust IV company       
guaranty jr. unsec. sub. FRB 1.653s, 2037     75,000   61,966 
Swiss Re Treasury US Corp. 144A company       
guaranty sr. unsec. notes 4 1/4s, 2042     90,000   95,077 
TMX Finance, LLC/TitleMax Finance Corp. 144A       
company guaranty sr. notes 8 1/2s, 2018     5,000   4,000 
Travelers Property Casualty Corp. company       
guaranty sr. unsec. unsub. bonds 7 3/4s, 2026     40,000   55,074 
TRI Pointe Group, Inc./TRI Pointe Homes, Inc.       
company guaranty sr. unsec. unsub. notes 5 7/8s, 2024   10,000   10,163 
UBS Group Funding Jersey, Ltd. 144A company       
guaranty sr. unsec. notes 3s, 2021 (Jersey)     200,000   203,153 
VEREIT Operating Partnership LP company       
guaranty sr. unsec. notes 4.6s, 2024 R     50,000   50,375 
VEREIT Operating Partnership LP company       
guaranty sr. unsec. unsub. bonds 4 7/8s, 2026 R     5,000   5,138 
Vnesheconombank Via VEB Finance PLC 144A       
sr. unsec. unsub. notes 6.8s, 2025 (Russia)     300,000   328,952 
VTB Bank OJSC Via VTB Capital SA 144A sr. unsec.     
notes 6 7/8s, 2018 (Russia)     192,000   205,428 
Wachovia Corp. sr. unsec. notes 5 3/4s, 2017     20,000   20,860 
Walter Investment Management Corp. company       
guaranty sr. unsec. notes 7 7/8s, 2021     8,000   3,930 
Wayne Merger Sub, LLC 144A sr. unsec.       
notes 8 1/4s, 2023     10,000   9,875 
Wells Fargo & Co. jr. unsec. sub. FRB Ser. U,       
5 7/8s, perpetual maturity     10,000   10,600 
Wells Fargo & Co. sr. unsec. notes 2.1s, 2017     128,000   129,100 
Westpac Banking Corp. sr. unsec.       
unsub. notes 4 7/8s, 2019 (Australia)     80,000   88,549 
WP Carey, Inc. sr. unsec. unsub. notes 4.6s, 2024 R   30,000   31,203 
ZFS Finance USA Trust V 144A jr. unsec. sub. FRB       
6 1/2s, 2037     5,000   4,988 
      7,603,816 
Health care (1.3%)       
AbbVie, Inc. sr. unsec. notes 2.9s, 2022     80,000   81,412 
AbbVie, Inc. sr. unsec. notes 1 3/4s, 2017     116,000   116,685 
Acadia Healthcare Co., Inc. company       
guaranty sr. unsec. sub. notes 6 1/8s, 2021     35,000   35,963 
Acadia Healthcare Co., Inc. company       
guaranty sr. unsec. sub. notes 5 1/8s, 2022     15,000   14,550 
Actavis Funding SCS company guaranty sr. unsec.       
notes 4 3/4s, 2045 (Luxembourg)     53,000   55,654 
Actavis Funding SCS company guaranty sr. unsec.       
notes 3.45s, 2022 (Luxembourg)     26,000   27,003 
Aetna, Inc. sr. unsec. notes 6 3/4s, 2037     38,000   51,540 
AMAG Pharmaceuticals, Inc. 144A company       
guaranty sr. unsec. notes 7 7/8s, 2023     15,000   13,425 
Amgen, Inc. sr. unsec. notes 3.45s, 2020     125,000   133,766 
Amgen, Inc. sr. unsec. unsub. notes 2 1/8s, 2017     130,000   131,084 
AstraZeneca PLC sr. unsec. unsub. notes 6.45s,       
2037 (United Kingdom)     36,000   48,970 

 

22  Putnam VT Global Asset Allocation Fund 

 


CORPORATE BONDS AND NOTES (18.6%)* cont.   Principal amount   Value 
 
Health care cont.       
AstraZeneca PLC sr. unsec. unsub. notes 5.9s,       
2017 (United Kingdom)     $130,000   $137,365 
Centene Corp. sr. unsec. unsub. notes 4 3/4s, 2022   20,000   20,400 
Centene Escrow Corp. 144A sr. unsec.       
notes 6 1/8s, 2024     15,000   15,947 
Centene Escrow Corp. 144A sr. unsec.       
notes 5 5/8s, 2021     20,000   20,850 
CHS/Community Health Systems, Inc. company       
guaranty sr. notes 5 1/8s, 2021     3,000   2,978 
CHS/Community Health Systems, Inc. company       
guaranty sr. unsec. notes 6 7/8s, 2022     18,000   15,750 
Cigna Corp. sr. unsec. unsub. notes 4 1/2s, 2021     80,000   87,823 
Concordia Healthcare Corp. 144A company       
guaranty sr. unsec. notes 7s, 2023 (Canada)     15,000   12,713 
Crimson Merger Sub, Inc. 144A sr. unsec.       
notes 6 5/8s, 2022     23,000   18,975 
DPx Holdings BV 144A sr. unsec.       
sub. notes 7 1/2s, 2022 (Netherlands)     33,000   33,908 
Endo Finance, LLC/Endo Finco, Inc. 144A company     
guaranty sr. unsec. unsub. notes 5 7/8s, 2023     10,000   8,700 
Halyard Health, Inc. company guaranty sr. unsec.       
unsub. notes 6 1/4s, 2022     15,000   14,625 
HCA, Inc. company guaranty sr. bonds 5 1/4s, 2026   15,000   15,572 
HCA, Inc. company guaranty sr. notes 6 1/2s, 2020   52,000   57,720 
HCA, Inc. company guaranty sr. sub. notes 5s, 2024   25,000   25,875 
HCA, Inc. company guaranty sr. sub. notes 3 3/4s, 2019   10,000   10,325 
HCA, Inc. company guaranty sr. unsec.       
unsub. notes 7 1/2s, 2022     4,000   4,550 
HCA, Inc. company guaranty sr. unsec.       
unsub. notes 5 3/8s, 2025     5,000   5,125 
Jaguar Holding Co. II/Pharmaceutical Product       
Development, LLC 144A company       
guaranty sr. unsec. notes 6 3/8s, 2023     15,000   15,338 
JLL/Delta Dutch Pledgeco BV 144A sr. unsec.       
notes 8 3/4s, 2020 (Netherlands) ‡‡     20,000   20,000 
Kinetic Concepts, Inc./KCI USA, Inc. company       
guaranty sub. notes 10 1/2s, 2018     25,000   24,938 
Kinetic Concepts, Inc./KCI USA, Inc. 144A company     
guaranty sr. notes 7 7/8s, 2021     20,000   21,262 
Mallinckrodt International Finance       
SA/Mallinckrodt CB, LLC 144A company       
guaranty sr. unsec. unsub. notes 5 1/2s, 2025       
(Luxembourg)     10,000   8,925 
MEDNAX, Inc. 144A company guaranty sr. unsec.       
unsub. notes 5 1/4s, 2023     5,000   5,063 
Molina Healthcare, Inc. 144A company       
guaranty sr. unsec. notes 5 3/8s, 2022     10,000   9,975 
Omega Healthcare Investors, Inc. company       
guaranty sr. unsec. notes 4 1/2s, 2027 R     75,000   74,250 
Omega Healthcare Investors, Inc. company       
guaranty sr. unsec. unsub. notes 4.95s, 2024 R     45,000   46,816 
Service Corp. International/US sr. unsec.       
notes 5 3/8s, 2022     14,000   14,420 
Service Corp. International/US sr. unsec.       
unsub. notes 5 3/8s, 2024     33,000   34,238 
Sterigenics-Nordion Holdings, LLC 144A sr. unsec.     
notes 6 1/2s, 2023     10,000   10,125 
Tenet Healthcare Corp. company       
guaranty sr. bonds 4 1/2s, 2021     7,000   7,053 
Tenet Healthcare Corp. company       
guaranty sr. bonds 4 3/8s, 2021     9,000   8,933 

 

CORPORATE BONDS AND NOTES (18.6%)* cont.   Principal amount   Value 
 
Health care cont.       
Tenet Healthcare Corp. company guaranty sr. FRN     
4.153s, 2020     $15,000   $14,813 
Tenet Healthcare Corp. company       
guaranty sr. notes 6 1/4s, 2018     24,000   25,320 
Tenet Healthcare Corp. company       
guaranty sr. notes 4 3/4s, 2020     3,000   3,073 
Tenet Healthcare Corp. company       
guaranty sr. sub. notes 6s, 2020     20,000   21,100 
UnitedHealth Group, Inc. sr. unsec. notes 6s, 2018   58,000   62,543 
UnitedHealth Group, Inc. sr. unsec.       
unsub. notes 3.95s, 2042     90,000   94,036 
UnitedHealth Group, Inc. sr. unsec.       
unsub. notes 2 3/4s, 2023     90,000   92,403 
Valeant Pharmaceuticals International, Inc. 144A       
company guaranty sr. unsec. notes 7s, 2020     3,000   2,648 
Valeant Pharmaceuticals International, Inc. 144A       
company guaranty sr. unsec. notes 6 3/8s, 2020     3,000   2,580 
Valeant Pharmaceuticals International, Inc. 144A       
company guaranty sr. unsec. notes 6 1/8s, 2025     15,000   12,038 
Valeant Pharmaceuticals International, Inc. 144A       
company guaranty sr. unsec. notes 5 7/8s, 2023     15,000   12,113 
Valeant Pharmaceuticals International, Inc. 144A       
company guaranty sr. unsec. notes 5 1/2s, 2023     5,000   4,016 
Valeant Pharmaceuticals International, Inc. 144A       
company guaranty sr. unsec. notes 5 3/8s, 2020     10,000   8,544 
      1,875,816 
Technology (0.9%)       
Apple, Inc. sr. unsec. notes 3.45s, 2024     40,000   43,304 
Apple, Inc. sr. unsec. notes 2.1s, 2019     5,000   5,144 
Apple, Inc. sr. unsec. unsub. notes 4 3/8s, 2045     80,000   87,159 
Apple, Inc. sr. unsec. unsub. notes 3.85s, 2043     27,000   27,049 
Avaya, Inc. 144A company guaranty notes 10 1/2s, 2021   10,000   2,200 
Avaya, Inc. 144A company guaranty sr. notes 7s, 2019   34,000   24,310 
Cisco Systems, Inc. sr. unsec.       
unsub. notes 3.15s, 2017     135,000   137,121 
CommScope Technologies Finance, LLC 144A       
sr. unsec. notes 6s, 2025     10,000   10,250 
Diamond 1 Finance Corp./Diamond 2 Finance Corp.     
144A company guaranty sr. unsec. notes 7 1/8s, 2024   5,000   5,222 
Diamond 1 Finance Corp./Diamond 2 Finance Corp.     
144A sr. bonds 8.35s, 2046     17,000   18,277 
Diamond 1 Finance Corp./Diamond 2 Finance Corp.     
144A sr. notes 5.45s, 2023     92,000   95,457 
Diamond 1 Finance Corp./Diamond 2 Finance Corp.     
144A sr. unsec. notes 5 7/8s, 2021     15,000   15,297 
eBay, Inc. sr. unsec. unsub. notes 1.35s, 2017     130,000   130,249 
Fidelity National Information Services, Inc.       
company guaranty sr. unsec. unsub. notes 5s, 2022   17,000   17,713 
Fidelity National Information Services, Inc.       
sr. unsec. unsub. notes 5s, 2025     30,000   34,057 
First Data Corp. 144A company guaranty sr. unsec.     
unsub. notes 7s, 2023     15,000   15,188 
First Data Corp. 144A notes 5 3/4s, 2024     15,000   14,888 
First Data Corp. 144A sr. notes 5 3/8s, 2023     15,000   15,233 
Freescale Semiconductor, Inc. 144A company       
guaranty sr. notes 6s, 2022     10,000   10,545 
IBM Corp. sr. unsec. unsub. notes 1 7/8s, 2022     140,000   140,314 
Infor US, Inc. company guaranty sr. unsec.       
notes 6 1/2s, 2022     35,000   33,053 
Infor US, Inc. 144A company       
guaranty sr. notes 5 3/4s, 2020     3,000   3,143 

 

Putnam VT Global Asset Allocation Fund  23 

 


CORPORATE BONDS AND NOTES (18.6%)* cont.   Principal amount   Value 
 
Technology cont.       
Intel Corp. sr. unsec. unsub. notes 1.35s, 2017     $130,000   $130,770 
Iron Mountain, Inc. company guaranty sr. unsec.       
notes 6s, 2023 R     14,000   14,735 
Iron Mountain, Inc. 144A company       
guaranty sr. unsec. notes 6s, 2020 R     5,000   5,231 
Jabil Circuit, Inc. sr. unsec. sub. notes 8 1/4s, 2018   11,000   12,018 
Micron Technology, Inc. company       
guaranty sr. unsec. unsub. notes 5 7/8s, 2022     25,000   23,500 
Micron Technology, Inc. 144A sr. notes 7 1/2s, 2023   5,000   5,313 
Microsoft Corp. sr. unsec. unsub. notes 5.3s, 2041   25,000   31,474 
Microsoft Corp. sr. unsec. unsub. notes 4.2s, 2019   85,000   92,881 
Oracle Corp. sr. unsec. unsub. notes 5 3/8s, 2040   35,000   42,319 
Oracle Corp. sr. unsec. unsub. notes 2.65s, 2026     10,000   10,025 
Oracle Corp. sr. unsec. unsub. notes 2 1/2s, 2022   80,000   81,796 
Plantronics, Inc. 144A company       
guaranty sr. unsec. notes 5 1/2s, 2023     20,000   19,750 
Syniverse Holdings, Inc. company       
guaranty sr. unsec. notes 9 1/8s, 2019     13,000   6,370 
Zebra Technologies Corp. sr. unsec.       
unsub. bonds 7 1/4s, 2022     15,000   15,900 
      1,377,255 
Transportation (0.2%)       
Air Medical Merger Sub Corp. 144A sr. unsec.       
notes 6 3/8s, 2023     40,000   38,100 
Burlington Northern Santa Fe, LLC sr. unsec.       
notes 5.4s, 2041     35,000   43,175 
Burlington Northern Santa Fe, LLC sr. unsec.       
unsub. notes 5 3/4s, 2040     35,000   45,229 
CSX Corp. sr. unsec. unsub. notes 4.1s, 2044     70,000   74,780 
Delta Air Lines, Inc. sr. notes Ser. A, 7 3/4s, 2019     31,999   36,082 
FedEx Corp. company guaranty sr. unsec.       
unsub. notes 2 5/8s, 2022     15,000   15,381 
United Airlines 2014-2 Class A Pass Through Trust     
sr. notes Ser. A, 3 3/4s, 2026     43,691   45,984 
United AirLines, Inc. pass-through certificates       
Ser. 07-A, 6.636s, 2022     11,848   12,529 
Watco Cos., LLC/Watco Finance Corp. 144A company     
guaranty sr. unsec. notes 6 3/8s, 2023     39,000   38,610 
      349,870 
Utilities and power (1.6%)       
AES Corp./Virginia (The) sr. unsec. notes 5 1/2s, 2025   35,000   35,088 
AES Corp./Virginia (The) sr. unsec. notes 4 7/8s, 2023   7,000   6,860 
AES Corp./Virginia (The) sr. unsec.       
unsub. notes 7 3/8s, 2021     27,000   30,443 
American Transmission Systems, Inc. 144A       
sr. unsec. unsub. bonds 5s, 2044     50,000   54,307 
Arizona Public Services Co. sr. unsec.       
notes 4 1/2s, 2042     15,000   17,330 
Berkshire Hathaway Energy Co. sr. unsec.       
unsub. bonds 6 1/8s, 2036     39,000   51,715 
Boardwalk Pipelines LP company       
guaranty sr. unsec. unsub. bonds 5.95s, 2026     5,000   5,251 
Calpine Corp. sr. unsec. sub. notes 5 3/4s, 2025     35,000   34,038 
Calpine Corp. 144A company guaranty sr. notes 6s, 2022   4,000   4,190 
Calpine Corp. 144A company       
guaranty sr. sub. notes 5 7/8s, 2024     3,000   3,120 
Colorado Interstate Gas Co., LLC company       
guaranty sr. unsec. notes 6.85s, 2037     10,000   10,318 
Commonwealth Edison Co. 1st mtge. bonds 5.9s, 2036   28,000   37,293 
Consolidated Edison Co. of New York, Inc.       
sr. unsec. notes 7 1/8s, 2018     83,000   94,703 

 

CORPORATE BONDS AND NOTES (18.6%)* cont.   Principal amount   Value 
 
Utilities and power cont.       
Consolidated Edison Co. of New York, Inc.       
sr. unsec. unsub. notes 4.2s, 2042     $45,000   $48,538 
DPL, Inc. sr. unsec. sub. notes 6 1/2s, 2016     2,000   2,000 
Duke Energy Corp. sr. unsec. unsub. notes 2.15s, 2016   95,000   95,372 
Dynegy, Inc. company guaranty sr. unsec.       
notes 6 3/4s, 2019     35,000   35,044 
Electricite de France (EDF) 144A jr. unsec.       
sub. FRN 5 5/8s, perpetual maturity (France)     150,000   140,813 
Electricite de France (EDF) 144A jr. unsec.       
sub. FRN 5 1/4s, perpetual maturity (France)     290,000   276,950 
Electricite de France (EDF) 144A sr. unsec.       
notes 6.95s, 2039 (France)     20,000   26,690 
Electricite de France (EDF) 144A sr. unsec.       
notes 6 1/2s, 2019 (France)     60,000   67,431 
Emera US Finance LP 144A company       
guaranty sr. unsec. notes 3.55s, 2026     20,000   20,465 
Energy Future Intermediate Holding Co., LLC/EFIH     
Finance, Inc. 144A notes 11 3/4s,       
2022 (In default) †     15,869   18,606 
Energy Transfer Equity LP company       
guaranty sr. notes 7 1/2s, 2020     13,000   13,780 
Energy Transfer Equity LP sr. sub. notes 5 7/8s, 2024   10,000   9,725 
Energy Transfer Partners LP sr. unsec.       
unsub. bonds 6 1/8s, 2045     10,000   10,369 
Energy Transfer Partners LP sr. unsec.       
unsub. notes 6 1/2s, 2042     30,000   31,295 
Energy Transfer Partners LP sr. unsec.       
unsub. notes 5.2s, 2022     25,000   26,400 
FirstEnergy Corp. sr. unsec. unsub. notes 4 1/4s, 2023   49,000   50,552 
GenOn Energy, Inc. sr. unsec. notes 9 1/2s, 2018     4,000   3,180 
GenOn Energy, Inc. sr. unsec. sub. notes 9 7/8s, 2020   23,000   16,330 
Hiland Partners Holdings, LLC/Hiland Partners       
Finance Corp. 144A company guaranty sr. unsec.       
notes 7 1/4s, 2020     14,000   14,525 
Hiland Partners Holdings, LLC/Hiland Partners       
Finance Corp. 144A company guaranty sr. unsec.       
sub. notes 5 1/2s, 2022     4,000   3,940 
ITC Holdings Corp. 144A sr. unsec. notes 6.05s, 2018   35,000   37,108 
Kinder Morgan Energy Partners LP company       
guaranty sr. unsec. notes 5.4s, 2044     12,000   11,841 
Kinder Morgan Energy Partners LP company       
guaranty sr. unsec. notes 3 1/2s, 2021     80,000   80,285 
Kinder Morgan Energy Partners LP company       
guaranty sr. unsec. unsub. notes 3.45s, 2023     25,000   24,305 
Kinder Morgan, Inc./DE company       
guaranty sr. unsec. notes Ser. GMTN, 7 3/4s, 2032   17,000   19,138 
MidAmerican Funding, LLC sr. bonds 6.927s, 2029   50,000   70,081 
Nevada Power Co. mtge. notes 7 1/8s, 2019     40,000   46,196 
NiSource Finance Corp. company       
guaranty sr. unsec. notes 6 1/8s, 2022     25,000   29,749 
NRG Energy, Inc. company guaranty sr. unsec.       
sub. notes 7 7/8s, 2021     60,000   62,100 
NRG Energy, Inc. 144A company guaranty sr. unsec.     
notes 7 1/4s, 2026     15,000   14,925 
NSTAR Electric Co. sr. unsec.       
unsub. notes 2 3/8s, 2022 (Canada)     75,000   77,206 
Oncor Electric Delivery Co., LLC sr. notes 4.1s, 2022   25,000   27,714 
Oncor Electric Delivery Co., LLC       
sr. notes 3 3/4s, 2045     75,000   76,890 
Pacific Gas & Electric Co. sr. unsec.       
bonds 6.05s, 2034     40,000   53,294 

 

24  Putnam VT Global Asset Allocation Fund 

 


CORPORATE BONDS AND NOTES (18.6%)* cont.   Principal amount   Value 
 
Utilities and power cont.     
Potomac Edison Co. (The) 144A sr. bonds 5.8s, 2016   $76,000   $76,747 
PPL Capital Funding, Inc. company     
guaranty sr. unsec. unsub. notes 4.2s, 2022   60,000   65,233 
Public Service Electric & Gas Co.     
sr. notes Ser. MTN, 5 1/2s, 2040   25,000   32,939 
Puget Sound Energy, Inc. jr. unsec. sub. FRN     
Ser. A, 6.974s, 2067   103,000   87,421 
Regency Energy Partners LP/Regency Energy     
Finance Corp. company guaranty sr. unsec.     
notes 5s, 2022   10,000   10,261 
Regency Energy Partners LP/Regency Energy     
Finance Corp. company guaranty sr. unsec.     
unsub. notes 5 7/8s, 2022   14,000   14,975 
Regency Energy Partners LP/Regency Energy     
Finance Corp. company guaranty sr. unsec.     
unsub. notes 5 1/2s, 2023   13,000   13,116 
Regency Energy Partners LP/Regency Energy     
Finance Corp. company guaranty sr. unsec.     
unsub. notes 4 1/2s, 2023   9,000   8,786 
Southern Star Central Corp. 144A sr. unsec.     
notes 5 1/8s, 2022   20,000   19,500 
Texas Competitive Electric Holdings Co., LLC/TCEH     
Finance, Inc. 144A company     
guaranty sr. notes 11 1/2s, 2020 (In default) †   13,000   4,420 
TransCanada PipeLines, Ltd. jr. unsec. sub. FRN     
6.35s, 2067 (Canada)   30,000   21,225 
Union Electric Co. sr. notes 6.4s, 2017   50,000   52,508 
    2,334,624 
 
Total corporate bonds and notes (cost $26,438,772)   $27,258,938 
 
 
MORTGAGE-BACKED SECURITIES (2.2%)*   Principal amount   Value 
 
Agency collateralized mortgage obligations (0.3%)     
Federal Home Loan Mortgage Corporation     
IFB Ser. 3408, Class EK, 24.014s, 2037   $16,083   $27,355 
IFB Ser. 3072, Class SM, 22.176s, 2035   20,817   33,202 
IFB Ser. 3249, Class PS, 20.816s, 2036   17,274   27,132 
IFB Ser. 3065, Class DC, 18.534s, 2035   41,758   63,313 
IFB Ser. 2990, Class LB, 15.816s, 2034   29,735   39,002 
Federal National Mortgage Association     
IFB Ser. 06-8, Class HP, 22.905s, 2036   29,068   51,341 
IFB Ser. 07-53, Class SP, 22.538s, 2037   25,608   41,096 
IFB Ser. 05-75, Class GS, 18.89s, 2035   12,171   17,445 
Connecticut Avenue Securities FRB Ser. 14-C03,     
Class 2M1, 1.653s, 2024   17,496   17,533 
Ser. 06-46, Class OC, PO, zero %, 2036   8,419   7,440 
Government National Mortgage Association     
Ser. 10-9, Class UI, IO, 5s, 2040   113,287   18,876 
Ser. 13-14, IO, 3 1/2s, 2042   442,610   47,824 
Ser. 12-141, Class WI, IO, 3 1/2s, 2041   506,565   31,544 
Ser. 15-H26, Class DI, IO, 1.984s, 2065   324,293   40,115 
    463,218 
Commercial mortgage-backed securities (1.4%)     
Banc of America Commercial Mortgage Trust FRB     
Ser. 07-1, Class XW, IO, 0.508s, 2049   783,844   2,568 
Banc of America Commercial Mortgage Trust 144A     
FRB Ser. 07-5, Class XW, IO, 0.494s, 2051   1,767,182   6,722 
Banc of America Merrill Lynch Commercial     
Mortgage, Inc. 144A     
FRB Ser. 04-5, Class XC, IO, 0.552s, 2041   54,902   759 
FRB Ser. 04-4, Class XC, IO, 0.092s, 2042   29,818   18 

 

MORTGAGE-BACKED SECURITIES (2.2%)* cont.   Principal amount   Value 
 
Commercial mortgage-backed securities cont.     
Bear Stearns Commercial Mortgage Securities Trust     
FRB Ser. 07-PW17, Class AJ, 6.083s, 2050   $51,000   $50,490 
Ser. 06-PW13, Class AJ, 5.611s, 2041   30,000   29,895 
FRB Ser. 04-PR3I, Class X1, IO, 0.332s, 2041   37,787   204 
Bear Stearns Commercial Mortgage Securities Trust     
144A FRB Ser. 06-PW14, Class X1, IO, 0.824s, 2038   1,093,307   15,088 
Capmark Mortgage Securities, Inc. FRB Ser. 97-C1,     
Class X, IO, 1.67s, 2029   19,477   541 
CD Commercial Mortgage Trust 144A FRB     
Ser. 07-CD4, Class XW, IO, 0.576s, 2049   806,422   2,016 
Citigroup Commercial Mortgage Trust 144A FRB     
Ser. 06-C5, Class XC, IO, 0.769s, 2049   5,106,103   9,599 
COMM Mortgage Trust     
Ser. 07-C9, Class AJ, 5.65s, 2049   81,000   81,527 
FRB Ser. 05-LP5, Class D, 4.791s, 2043   9,946   9,938 
FRB Ser. 14-UBS6, Class C, 4.614s, 2047   61,000   58,502 
Ser. 13-CR13, Class AM, 4.449s, 2023   85,000   93,854 
FRB Ser. 14-CR18, Class XA, IO, 1.433s, 2047   381,201   24,237 
FRB Ser. 14-CR16, Class XA, IO, 1.399s, 2047   386,915   23,110 
FRB Ser. 14-CR17, Class XA, IO, 1.338s, 2047   744,019   44,641 
FRB Ser. 14-UBS6, Class XA, IO, 1.212s, 2047   1,002,552   60,019 
FRB Ser. 14-LC17, Class XA, IO, 1.152s, 2047   1,058,004   51,081 
FRB Ser. 13-CR13, Class XA, IO, 1.13s, 2023   356,833   16,200 
COMM Mortgage Trust 144A FRB Ser. 06-C8,     
Class XS, IO, 0.719s, 2046   4,670,412   5,528 
Credit Suisse Commercial Mortgage Trust 144A FRB     
Ser. 07-C2, Class AX, IO, 0.214s, 2049   6,034,703   4,828 
First Union National Bank-Bank of America, NA     
Commercial Mortgage Trust 144A FRB Ser. 01-C1,     
Class 3, IO, 2.2s, 2033   17,792   — 
GCCFC Commercial Mortgage Trust FRB Ser. 05-GG3,     
Class E, 5.087s, 2042   33,364   33,121 
GE Capital Commercial Mortgage Corp. 144A FRB     
Ser. 05-C3, Class XC, IO, 0.119s, 2045   412,095   — 
GE Capital Commercial Mortgage Corp. Trust FRB     
Ser. 06-C1, Class AJ, 5.52s, 2044   14,980   14,737 
GE Commercial Mortgage Corp. Trust 144A FRB     
Ser. 07-C1, Class XC, IO, 0.391s, 2049   6,800,034   14,542 
GMAC Commercial Mortgage Securities, Inc. Trust     
144A FRB Ser. 05-C1, Class X1, IO, 0.785s, 2043   304,234   724 
GS Mortgage Securities Trust FRB Ser. 13-GC12,     
Class C, 4.179s, 2046   62,000   60,729 
GS Mortgage Securities Trust 144A     
FRB Ser. 06-GG8, Class X, IO, 0.745s, 2039   5,341,008   5,341 
FRB Ser. 06-GG6, Class XC, IO, zero %, 2038   43,804   — 
JPMorgan Chase Commercial Mortgage Securities Trust   
FRB Ser. 06-LDP7, Class B, 6.184s, 2045   107,000   53,029 
FRB Ser. 05-LDP5, Class F, 5.718s, 2044   79,000   78,984 
Ser. 06-LDP8, Class B, 5.52s, 2045   32,000   29,622 
Ser. 06-LDP8, Class AJ, 5.48s, 2045   141,000   140,774 
FRB Ser. 06-LDP8, Class X, IO, 0.583s, 2045   664,182   219 
FRB Ser. 07-LDPX, Class X, IO, 0.471s, 2049   3,247,701   13,152 
JPMorgan Chase Commercial Mortgage Securities     
Trust 144A FRB Ser. 05-CB12, Class X1, IO,     
0.496s, 2037   249,943   1,039 
LB Commercial Mortgage Trust 144A     
Ser. 99-C1, Class G, 6.41s, 2031   10,222   10,440 
Ser. 98-C4, Class H, 5.6s, 2035   17,046   17,274 
LB-UBS Commercial Mortgage Trust Ser. 06-C1,     
Class AJ, 5.276s, 2041   54,323   53,929 

 

Putnam VT Global Asset Allocation Fund  25 

 


MORTGAGE-BACKED SECURITIES (2.2%)* cont.   Principal amount   Value 
 
Commercial mortgage-backed securities cont.       
LB-UBS Commercial Mortgage Trust 144A       
FRB Ser. 06-C6, Class XCL, IO, 0.859s, 2039     $4,682,720   $8,382 
FRB Ser. 05-C5, Class XCL, IO, 0.498s, 2040     524,407   5,095 
FRB Ser. 05-C7, Class XCL, IO, 0.461s, 2040     132,088   1,148 
FRB Ser. 05-C2, Class XCL, IO, 0.195s, 2040     40,507   9 
Merrill Lynch Mortgage Trust FRB Ser. 07-C1,       
Class A3, 6.021s, 2050     4,156   4,149 
Merrill Lynch Mortgage Trust 144A       
FRB Ser. 04-KEY2, Class XC, IO, 0.578s, 2039   70,740   32 
FRB Ser. 05-MCP1, Class XC, IO, 0.023s, 2043   112,078   1 
Mezz Cap Commercial Mortgage Trust 144A       
FRB Ser. 05-C3, Class X, IO, 7.156s, 2044     3,926   46 
FRB Ser. 06-C4, Class X, IO, 6.024s, 2045     164,329   2,629 
ML-CFC Commercial Mortgage Trust FRB Ser. 06-2,     
Class AJ, 6.197s, 2046     14,449   14,446 
Morgan Stanley Bank of America Merrill Lynch Trust     
FRB Ser. 14-C17, Class XA, IO, 1.42s, 2047     296,403   18,614 
FRB Ser. 13-C12, Class XA, IO, 1.11s, 2046     771,130   29,359 
Morgan Stanley Bank of America Merrill Lynch       
Trust 144A FRB Ser. 12-C6, Class XA, IO, 2.193s, 2045   826,464   56,365 
Morgan Stanley Capital I Trust       
FRB Ser. 07-T27, Class AJ, 5.82s, 2042     25,000   24,213 
Ser. 07-IQ14, Class A2, 5.61s, 2049     25,341   25,377 
FRB Ser. 06-HQ8, Class AJ, 5.59s, 2044     21,778   21,778 
Ser. 07-HQ11, Class AJ, 5.508s, 2044     33,000   32,673 
Ser. 06-HQ10, Class AJ, 5.389s, 2041     52,000   51,714 
Morgan Stanley Capital I Trust 144A       
FRB Ser. 11-C3, Class D, 5.348s, 2049     34,000   35,346 
FRB Ser. 11-C3, Class E, 5.348s, 2049     41,000   40,148 
Morgan Stanley Re-REMIC Trust 144A FRB       
Ser. 10-C30A, Class A3B, 5.246s, 2043     93,803   93,859 
UBS-Barclays Commercial Mortgage Trust 144A       
FRB Ser. 12-C3, Class C, 5.123s, 2049     50,000   52,780 
FRB Ser. 12-C4, Class XA, IO, 1.93s, 2045     232,427   18,596 
Wachovia Bank Commercial Mortgage Trust FRB       
Ser. 07-C34, IO, 0.456s, 2046     1,222,318   8,067 
Wachovia Bank Commercial Mortgage Trust 144A     
FRB Ser. 06-C26, Class XC, IO, 0.148s, 2045     593,548   119 
FRB Ser. 05-C18, Class XC, IO, zero %, 2042     35,882   4 
Wells Fargo Commercial Mortgage Trust FRB       
Ser. 13-LC12, Class AS, 4.433s, 2046     19,000   21,164 
WF-RBS Commercial Mortgage Trust       
Ser. 14-C19, Class C, 4.646s, 2047     46,000   47,026 
Ser. 13-C12, Class AS, 3.56s, 2048     33,000   35,063 
WF-RBS Commercial Mortgage Trust 144A       
FRB Ser. 11-C3, Class D, 5.807s, 2044     32,000   32,858 
FRB Ser. 13-C17, Class D, 5.295s, 2046     38,000   34,523 
Ser. 11-C4, Class E, 5.265s, 2044     50,000   49,400 
FRB Ser. 13-C15, Class D, 4.629s, 2046     53,000   46,782 
Ser. 14-C19, Class D, 4.234s, 2047     15,000   11,747 
FRB Ser. 12-C9, Class XA, IO, 2.295s, 2045     369,306   32,979 
FRB Ser. 12-C10, Class XA, IO, 1.873s, 2045     578,813   44,626 
FRB Ser. 13-C12, Class XA, IO, 1.537s, 2048     391,592   24,186 
      2,044,324 
Residential mortgage-backed securities (non-agency) (0.5%)   
BCAP, LLC Trust 144A FRB Ser. 15-RR5, Class 2A3,     
1.48s, 2046     100,000   62,344 
Countrywide Alternative Loan Trust       
FRB Ser. 06-OA7, Class 1A2, 1.377s, 2046     192,137   146,024 
FRB Ser. 05-27, Class 1A1, 1.356s, 2035     60,850   51,114 

 

MORTGAGE-BACKED SECURITIES (2.2%)* cont.   Principal amount   Value 
 
Residential mortgage-backed securities (non-agency) cont.   
Countrywide Alternative Loan Trust       
FRB Ser. 06-OC2, Class 2A3, 0.743s, 2036   $28,405   $19,884 
FRB Ser. 06-OA10, Class 4A1, 0.643s, 2046   208,566   145,996 
Federal National Mortgage Association       
Connecticut Avenue Securities FRB Ser. 16-C03,     
Class 2M2, 6.353s, 2028     20,000   20,752 
Connecticut Avenue Securities FRB Ser. 15-C04,     
Class 1M2, 6.153s, 2028     80,000   82,308 
Connecticut Avenue Securities FRB Ser. 15-C04,     
Class 2M2, 6.003s, 2028     10,000   10,226 
Connecticut Avenue Securities FRB Ser. 15-C03,     
Class 1M2, 5.453s, 2025     18,500   18,641 
Nomura Resecuritization Trust 144A FRB       
Ser. 15-1R, Class 6A9, 0.609s, 2047     100,000   57,010 
WaMu Mortgage Pass-Through Certificates Trust     
FRB Ser. 05-AR9, Class A1C3, 1.413s, 2045   82,251   74,947 
FRB Ser. 05-AR13, Class A1C3, 0.943s, 2045   57,017   47,877 
      737,123 
 
Total mortgage-backed securities (cost $3,177,505)   $3,244,665 
 
 
FOREIGN GOVERNMENT AND AGENCY       
BONDS AND NOTES (0.4%)*   Principal amount   Value 
 
Brazil (Federal Republic of) unsec. notes 10s,     
2021 (Brazil) (units)   BRL 805   $234,145 
Russia (Federation of) 144A sr. unsec.       
unsub. bonds 5 5/8s, 2042 (Russia)     $200,000   224,077 
South Africa (Republic of) sr. unsec.       
unsub. notes 4.665s, 2024 (South Africa)     135,000   139,433 
Total foreign government and agency bonds     
and notes (cost $758,671)       $597,655 
 
 
SENIOR LOANS (0.2%)* c   Principal amount   Value 
 
Avaya, Inc. bank term loan FRN Ser. B7, 6 1/4s, 2020   $19,704   $13,826 
Caesars Entertainment Operating Co., Inc. bank     
term loan FRN Ser. B6, 11 1/4s, 2017     143,527   143,168 
Caesars Entertainment Operating Co., Inc. bank     
term loan FRN Ser. B7, 10 3/4s, 2017     14,925   14,987 
Caesars Growth Properties Holdings, LLC bank term     
loan FRN 6 1/4s, 2021     49,000   45,815 
CPG International, Inc. bank term loan FRN       
Ser. B, 4 3/4s, 2020     4,810   4,726 
Gates Global, LLC/Gates Global Co. bank term loan     
FRN 4 1/4s, 2021     19,439   18,437 
MEG Energy Corp. bank term loan FRN Ser. B,     
3 3/4s, 2020 (Canada)     9,974   8,702 
Neiman Marcus Group, Ltd., Inc. bank term loan     
FRN 4 1/4s, 2020     24,290   21,778 
Texas Competitive Electric Holdings Co., LLC bank     
term loan FRN 4.676s, 2017     101,971   33,842 
Texas Competitive Electric Holdings Co., LLC bank     
term loan FRN 4.676s, 2017     1,047   347 
Total senior loans (cost $379,992)       $305,628 
 
 
ASSET-BACKED SECURITIES (0.1%)*   Principal amount   Value 
 
Station Place Securitization Trust FRB Ser. 16-1,     
Class A, 1.453s, 2017     $159,000   $159,000 
Total asset-backed securities (cost $159,000)     $159,000 

 

26  Putnam VT Global Asset Allocation Fund 

 


INVESTMENT COMPANIES (—%)*     Shares   Value 
 
Hercules Capital, Inc.       1,034   $12,842 
Medley Capital Corp.       2,243   15,028 
Solar Capital, Ltd.       873   16,631 
Total investment companies (cost $51,351)       $44,501 
 
 
CONVERTIBLE BONDS AND NOTES (—%)*   Principal amount   Value 
 
iStar, Inc. cv. sr. unsec. unsub. notes 3s, 2016 R   $10,000   $10,081 
Jazz US Holdings, Inc. cv. company       
guaranty sr. unsec. notes 8s, 2018     11,000   15,730 
Navistar International Corp. cv. sr. unsec.       
sub. bonds 4 1/2s, 2018     9,000   5,991 
Total convertible bonds and notes (cost $27,011)     $31,802 
 
 
WARRANTS (—%)* †   Expiration date   Strike price   Warrants   Value 
 
Gree Electric         
Appliances, Inc.         
of Zhuhai 144A         
(China) F   7/24/17   $0.00   2,900   $11,020 
Wuliangye Yibin Co.,         
Ltd. 144A (China)   4/17/17   0.00   3,500   17,138 
Total warrants (cost $23,169)       $28,158 
 
 
CONVERTIBLE PREFERRED STOCKS (—%)*     Shares   Value 
 
EPR Properties Ser. C, $1.438 cv. pfd. R     575   $17,645 
Total convertible preferred stocks (cost $10,501)     $17,645 
 
 
PREFERRED STOCKS (—%)*     Shares   Value 
 
GMAC Capital Trust I Ser. 2, $2.031 cum. ARP     680   $16,878 
Total preferred stocks (cost $17,000)       $16,878 
 
 
PURCHASED OPTIONS    Expiration  Contract   
OUTSTANDING (—%)*   date/strike price   amount   Value 
 
EUR/USD (Put)   Jul-16/$1.10   EUR 1,049,700   $6,104 
FTSE 100 Index (Put)   Jul-16/6,058.33   GBP 34   694 
USD/CAD (Call)   Jul-16/CAD 1.32   $577,700   1,600 
Total purchased options outstanding (cost $15,564)     $8,398 
 
 
    Principal amount/   
SHORT-TERM INVESTMENTS (22.6%)*     shares   Value 
 
Putnam Cash Collateral Pool, LLC 0.64% d   Shares   1,434,014   $1,434,014 
Putnam Money Market Liquidity Fund 0.39% L   Shares   2,010,043   2,010,043 
Putnam Short Term Investment Fund 0.47% L   Shares   28,528,454   28,528,454 
U.S. Treasury Bills 0.19%, September 1, 2016 §   $3,000   2,999 
U.S. Treasury Bills 0.20%, August 11, 2016 # ∆ §   865,000   864,800 
U.S. Treasury Bills 0.22%, August 4, 2016 ∆ §     155,000   154,969 
U.S. Treasury Bills 0.23%, July 14, 2016 # ∆ §     137,000   136,993 
Total short-term investments (cost $33,132,273)     $33,132,272 
 
Total investments (cost $166,838,270)     $174,053,975 

 

Key to holding’s currency abbreviations

 

BRL  Brazilian Real 
CAD  Canadian Dollar 
GBP  British Pound 
USD/$   United States Dollar 

 

Key to holding’s abbreviations

 

ADR  American Depository Receipts: represents ownership of foreign 
securities on deposit with a custodian bank 
ARP  Adjustable Rate Preferred Stock: the rate shown is the current 
interest rate at the close of the reporting period 
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 or 
  yield at the close of the reporting period 
GDR  Global Depository Receipts: represents ownership of foreign 
  securities on deposit with a custodian bank 
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 
OJSC  Open 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, 2016 through June 30, 2016 (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 $146,579,955.

† This security is non-income-producing.

∆∆ This 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 $12,501, 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 certain derivative 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 This security is valued by Putnam Management 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. At the close of the reporting period, fair value pricing was also used for certain foreign securities in the portfolio (Note 1).

i This security was pledged, or purchased with cash that was pledged, to the fund for collateral on certain derivative contracts (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.

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 $41,055,149 to cover certain derivative contracts and delayed delivery securities.

Unless otherwise noted, the rates quoted in Short-term investments security descriptions represent the weighted average yield to maturity.

Debt obligations are considered secured unless otherwise indicated.

Putnam VT Global Asset Allocation Fund  27 

 


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.

FORWARD CURRENCY CONTRACTS at 6/30/16 (aggregate face value $31,111,866) (Unaudited)

            Unrealized 
    Contract  Delivery    Aggregate   appreciation/ 
Counterparty  Currency  type  date  Value   face value   (depreciation) 
Bank of America N.A.           
  Australian Dollar  Buy  7/21/16  $219,209  $208,259  $10,950 
  British Pound  Sell  9/21/16  134,822  138,777  3,955 
  Canadian Dollar  Buy  7/21/16  61,771  59,387  2,384 
  Euro  Sell  9/21/16  2,360,333  2,376,229  15,896 
  Hong Kong Dollar  Sell  8/18/16  146,522  146,507  (15) 
  Japanese Yen  Sell  8/18/16  9,901  11,507  1,606 
  Malaysian Ringgit  Buy  8/18/16  149,507  148,921  586 
  New Zealand Dollar  Buy  7/21/16  159,163  155,876  3,287 
  Swedish Krona  Sell  9/21/16  144,116  152,254  8,138 
Barclays Bank PLC           
  Australian Dollar  Buy  7/21/16  71,703  74,821  (3,118) 
  British Pound  Sell  9/21/16  277,105  285,093  7,988 
  Canadian Dollar  Sell  7/21/16  110,615  113,077  2,462 
  Euro  Buy  9/21/16  1,560,831  1,572,849  (12,018) 
  Hong Kong Dollar  Buy  8/18/16  181,421  181,430  (9) 
  Japanese Yen  Buy  8/18/16  159,579  146,862  12,717 
  New Zealand Dollar  Buy  7/21/16  80,687  77,125  3,562 
  Norwegian Krone  Sell  9/21/16  4,026  4,037  11 
  Singapore Dollar  Buy  8/18/16  68,416  68,562  (146) 
  Swedish Krona  Sell  9/21/16  203,793  203,183  (610) 
  Swiss Franc  Sell  9/21/16  64,598  63,841  (757) 
Citibank, N.A.           
  Australian Dollar  Buy  7/21/16  205,420  203,073  2,347 
  British Pound  Buy  9/21/16  2,107,600  2,281,235  (173,635) 
  Canadian Dollar  Sell  7/21/16  632,419  625,669  (6,750) 
  Danish Krone  Sell  9/21/16  156,075  157,097  1,022 
  Euro  Sell  9/21/16  2,125,958  2,143,822  17,864 
  Japanese Yen  Buy  8/18/16  78,578  79,638  (1,060) 
  New Zealand Dollar  Buy  7/21/16  253,905  245,014  8,891 
  South African Rand  Buy  7/21/16  145,435  142,659  2,776 
Credit Suisse International           
  Australian Dollar  Buy  7/21/16  275,185  285,371  (10,186) 
  British Pound  Sell  9/21/16  901,259  966,929  65,670 
  Canadian Dollar  Sell  7/21/16  240,195  236,722  (3,473) 
  Hong Kong Dollar  Sell  8/18/16  146,058  146,046  (12) 
  Japanese Yen  Buy  8/18/16  143,071  138,739  4,332 
  Japanese Yen  Sell  8/18/16  155,198  146,027  (9,171) 
  New Zealand Dollar  Buy  7/21/16  374,758  364,735  10,023 
  Norwegian Krone  Sell  9/21/16  178,267  178,896  629 
  Swedish Krona  Sell  9/21/16  343,295  350,507  7,212 
  Swiss Franc  Buy  9/21/16  438,096  432,964  5,132 
Deutsche Bank AG           
  Australian Dollar  Sell  7/21/16  74,312  72,345  (1,967) 
  Euro  Sell  9/21/16  2,226  3,019  793 

 

28  Putnam VT Global Asset Allocation Fund 

 


FORWARD CURRENCY CONTRACTS at 6/30/16 (aggregate face value $31,111,866) (Unaudited) cont.

            Unrealized 
    Contract  Delivery    Aggregate   appreciation/ 
Counterparty  Currency  type  date  Value   face value   (depreciation) 
Deutsche Bank AG cont.           
  Japanese Yen  Buy  8/18/16  $152,117  $150,260  $1,857 
  Japanese Yen  Sell  8/18/16  166,977  157,437  (9,540) 
Goldman Sachs International           
  Australian Dollar  Buy  7/21/16  223,756  227,783  (4,027) 
  British Pound  Sell  9/21/16  284,033  296,437  12,404 
  Canadian Dollar  Buy  7/21/16  148,778  140,704  8,074 
  Euro  Buy  9/21/16  292,023  294,888  (2,865) 
  Indonesian Rupiah  Buy  8/18/16  147,712  145,506  2,206 
  Japanese Yen  Sell  8/18/16  292,955  296,180  3,225 
  New Zealand Dollar  Buy  7/21/16  297,067  281,403  15,664 
  South Korean Won  Buy  8/18/16  153,003  151,164  1,839 
  South Korean Won  Sell  8/18/16  153,051  148,838  (4,213) 
  Swedish Krona  Sell  9/21/16  432,597  435,701  3,104 
HSBC Bank USA, National Association           
  Australian Dollar  Buy  7/21/16  152,276  148,700  3,576 
  British Pound  Sell  9/21/16  1,665,963  1,793,765  127,802 
  Canadian Dollar  Buy  7/21/16  156,441  154,214  2,227 
  Euro  Sell  9/21/16  72,338  73,117  779 
  Hong Kong Dollar  Sell  8/18/16  146,342  146,341  (1) 
  Polish Zloty  Buy  9/21/16  144,119  141,105  3,014 
  Polish Zloty  Sell  9/21/16  147,105  145,270  (1,835) 
JPMorgan Chase Bank N.A.           
  Australian Dollar  Buy  7/21/16  129,021  138,236  (9,215) 
  British Pound  Sell  9/21/16  427,515  442,125  14,610 
  Canadian Dollar  Buy  7/21/16  222,392  222,762  (370) 
  Euro  Buy  9/21/16  351,006  355,992  (4,986) 
  Hong Kong Dollar  Sell  8/18/16  149,243  149,229  (14) 
  Indonesian Rupiah  Buy  11/16/16  142,126  142,907  (781) 
  Japanese Yen  Sell  8/18/16  134,228  132,754  (1,474) 
  New Zealand Dollar  Buy  7/21/16  157,665  145,135  12,530 
  Norwegian Krone  Buy  9/21/16  114,552  118,411  (3,859) 
  Russian Ruble  Buy  9/21/16  146,162  142,638  3,524 
  Swedish Krona  Sell  9/21/16  734,728  751,036  16,308 
Royal Bank of Scotland PLC (The)           
  Australian Dollar  Sell  7/21/16  93,616  80,386  (13,230) 
  British Pound  Sell  9/21/16  144,947  145,219  272 
  Canadian Dollar  Sell  7/21/16  338,890  338,531  (359) 
  Euro  Sell  9/21/16  80,017  84,027  4,010 
  Japanese Yen  Sell  8/18/16  144,666  145,619  953 
  New Zealand Dollar  Buy  7/21/16  327,458  320,920  6,538 
  Norwegian Krone  Sell  9/21/16  362,615  361,011  (1,604) 
State Street Bank and Trust Co.           
  Australian Dollar  Buy  7/21/16  135,581  147,583  (12,002) 
  British Pound  Sell  9/21/16  133,490  138,952  5,462 
  Canadian Dollar  Buy  7/21/16  150,945  156,973  (6,028) 
  Singapore Dollar  Sell  8/18/16  151,449  150,363  (1,086) 
UBS AG             
  Australian Dollar  Buy  7/21/16  373,796  372,245  1,551 
  British Pound  Buy  9/21/16  456,425  494,123  (37,698) 
  Canadian Dollar  Sell  7/21/16  76,555  77,264  709 
  Euro  Buy  9/21/16  4,128,488  4,157,321  (28,833) 
  Japanese Yen  Buy  8/18/16  152,117  150,621  1,496 

 

Putnam VT Global Asset Allocation Fund  29 

 


FORWARD CURRENCY CONTRACTS at 6/30/16 (aggregate face value $31,111,866) (Unaudited) cont.

            Unrealized 
    Contract  Delivery    Aggregate   appreciation/ 
Counterparty  Currency  type  date  Value   face value   (depreciation) 
UBS AG cont.             
  Japanese Yen  Sell  8/18/16  $156,251  $150,631  $(5,620) 
  New Zealand Dollar  Buy  7/21/16  151,672  145,148  6,524 
WestPac Banking Corp.           
  Canadian Dollar  Sell  7/21/16  36,304  35,787  (517) 
Total            $87,407 

 

FUTURES CONTRACTS         
OUTSTANDING        Unrealized 
at 6/30/16  Number of    Expiration   appreciation/ 
(Unaudited)  contracts  Value  date   (depreciation) 
MSCI EAFE Index Mini         
(Short)  8  $646,080  Sep-16  $1,424 
Russell 2000 Index Mini         
(Short)  17  1,950,580  Sep-16  45,934 
S&P 500 Index E-Mini         
(Long)  94  9,823,940  Sep-16  (69,462) 
S&P Mid Cap 400 Index         
E-Mini (Long)  13  1,940,900  Sep-16  (29,161) 
U.S. Treasury Bond 30 yr         
(Long)  7  1,206,406  Sep-16  65,611 
U.S. Treasury Bond Ultra         
30 yr (Long)  13  2,422,875  Sep-16  150,388 
U.S. Treasury Note 2 yr         
(Long)  36  7,895,813  Sep-16  49,428 
U.S. Treasury Note 2 yr         
(Short)  26  5,702,531  Sep-16  (39,474) 
U.S. Treasury Note 5 yr         
(Long)  63  7,696,336  Sep-16  132,414 
U.S. Treasury Note 10 yr         
(Long)  15  1,994,766  Sep-16  53,876 
U.S. Treasury Note 10 yr         
(Short)  55  7,314,141  Sep-16  (197,765) 
Total        $163,213 

 

WRITTEN SWAP OPTIONS OUTSTANDING at 6/30/16 (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  $20,362 
Total      $20,362 
 
 
WRITTEN OPTIONS       
OUTSTANDING at 6/30/16  Expiration  Contract   
(premiums $3,053) (Unaudited)  date/strike price  amount  Value 
FTSE 100 Index (Put)  Jul-16/5,933.42  GBP 34  $478 
Total      $478 
 
 
TBA SALE COMMITMENTS OUTSTANDING       
at 6/30/16 (proceeds receivable  Principal  Settlement   
$8,494,883) (Unaudited)  amount  date  Value 
Federal National Mortgage Association, 4s,     
July 1, 2046  $4,000,000  7/14/16  $4,288,750 
Federal National Mortgage Association, 3s,     
July 1, 2046  1,000,000  7/14/16  1,037,578 
Government National Mortgage       
Association, 3 1/2s, July 1, 2046  3,000,000  7/20/16  3,183,516 
Total      $8,509,844 

 

CENTRALLY CLEARED INTEREST RATE SWAP CONTRACTS OUTSTANDING at 6/30/16 (Unaudited)

 

    Upfront        Unrealized 
    premium  Termination  Payments made by  Payments received by  appreciation/ 
Notional amount received (paid)  date  fund per annum  fund per annum  (depreciation) 
  $3,025,700 E  $(7,771)  9/21/18  3 month USD-LIBOR-BBA  1.12%  $13,506 
  7,915,400 E  17,819  9/21/18  1.12%  3 month  (37,842) 
          USD-LIBOR-BBA   
  2,593,300 E  (16,227)  9/21/21  3 month USD-LIBOR-BBA  1.40%  31,731 
  1,234,200 E  7,912  9/21/21  1.40%  3 month  (14,912) 
          USD-LIBOR-BBA   
  890,000 E  (9,725)  9/21/26  3 month USD-LIBOR-BBA  1.75%  19,218 
  1,962,900 E  21,406  9/21/26  1.75%  3 month  (42,428) 
          USD-LIBOR-BBA   
  113,100 E  2,665  9/21/46  2.17%  3 month  (5,915) 
          USD-LIBOR-BBA   
Total    $16,079        $(36,642) 

 

E Extended effective date.

 

30  Putnam VT Global Asset Allocation Fund 

 


OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 6/30/16 (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         
$12,511  $—  1/12/42  4.00% (1 month USD-LIBOR)  Synthetic TRS Index 4.00%  $(156) 
          30 year Fannie Mae pools   
141,940  —  1/12/41  4.00% (1 month USD-LIBOR)  Synthetic TRS Index 4.00%  (1,725) 
          30 year Fannie Mae pools   
56,552  —  1/12/40  4.50% (1 month USD-LIBOR)  Synthetic MBX Index 4.50%  58 
          30 year Fannie Mae pools   
114,978  —  1/12/41  4.00% (1 month USD-LIBOR)  Synthetic TRS Index 4.00%  (1,397) 
          30 year Fannie Mae pools   
47,292  —  1/12/41  (5.00%) 1 month USD-LIBOR  Synthetic TRS Index 5.00%  439 
          30 year Fannie Mae pools   
20,114  —  1/12/43  3.50% (1 month USD-LIBOR)  Synthetic TRS Index 3.50%  (250) 
          30 year Fannie Mae pools   
47,362  —  1/12/39  (5.50%) 1 month USD-LIBOR  Synthetic MBX Index 5.50%  (169) 
          30 year Fannie Mae pools   
86,487  —  1/12/40  5.00% (1 month USD-LIBOR)  Synthetic MBX Index 5.00%  97 
          30 year Fannie Mae pools   
229,786  —  1/12/41  5.00% (1 month USD-LIBOR)  Synthetic MBX Index 5.00%  869 
          30 year Fannie Mae pools   
35,948  —  1/12/38  (6.50%) 1 month USD-LIBOR  Synthetic MBX Index 6.50%  (304) 
          30 year Fannie Mae pools   
Citibank, N.A.         
  8,346  —  1/12/41  5.00% (1 month USD-LIBOR)  Synthetic MBX Index 5.00%  32 
          30 year Fannie Mae pools   
baskets  51  —  12/16/16  (3 month USD-LIBOR-BBA  A basket (CGPUTQL2) of  176,982 
        plus 0.42%)  common stocks   
units  1,138  —  11/23/16  3 month USD-LIBOR-BBA  Russell 1000 Total Return  (183,960) 
        plus 0.02%  Index   
Credit Suisse International         
$225,131  —  1/12/41  4.50% (1 month USD-LIBOR)  Synthetic MBX Index 4.50%  792 
          30 year Ginnie Mae II pools   
178,510  —  1/12/41  4.00% (1 month USD-LIBOR)  Synthetic TRS Index 4.00%  (2,169) 
          30 year Fannie Mae pools   
56,557  —  1/12/45  3.50% (1 month USD-LIBOR)  Synthetic TRS Index 3.50%  (808) 
          30 year Fannie Mae pools   
202,993  —  1/12/41  (4.00%) 1 month USD-LIBOR  Synthetic TRS Index 4.00%  2,467 
          30 year Fannie Mae pools   
Goldman Sachs International         
30,887  —  1/12/42  4.00% (1 month USD-LIBOR)  Synthetic TRS Index 4.00%  (385) 
          30 year Fannie Mae pools   
30,887  —  1/12/42  4.00% (1 month USD-LIBOR)  Synthetic TRS Index 4.00%  (385) 
          30 year Fannie Mae pools   
  8,058  —  1/12/41  4.00% (1 month USD-LIBOR)  Synthetic TRS Index 4.00%  (98) 
          30 year Fannie Mae pools   
145,172  —  1/12/40  4.00% (1 month USD-LIBOR)  Synthetic TRS Index 4.00%  (1,650) 
          30 year Fannie Mae pools   
286,049  —  1/12/41  4.00% (1 month USD-LIBOR)  Synthetic TRS Index 4.00%  (3,447) 
          30 year Fannie Mae pools   
Total    $—        $(15,167) 

 

Putnam VT Global Asset Allocation Fund  31 

 


OTC CREDIT DEFAULT CONTRACTS OUTSTANDING at 6/30/16 (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  $273  $4,000  5/11/63  300 bp  $(21) 
CMBX NA BBB– Index  BBB–/P  482  8,000  5/11/63  300 bp  (106) 
CMBX NA BBB– Index  BBB–/P  926  15,000  5/11/63  300 bp  (176) 
CMBX NA BBB– Index  BBB–/P  912  16,000  5/11/63  300 bp  (264) 
Credit Suisse International             
CMBX NA BB Index  —  (1,818)  103,000  5/11/63  (500 bp)  12,238 
CMBX NA BBB– Index  BBB–/P  4,215  47,000  5/11/63  300 bp  761 
CMBX NA BBB– Index  BBB–/P  1,173  81,000  5/11/63  300 bp  (4,781) 
CMBX NA BBB– Index  BBB–/P  1,510  115,000  5/11/63  300 bp  (6,942) 
CMBX NA BBB– Index  BBB–/P  301  3,000  1/17/47  300 bp  (2) 
CMBX NA BBB– Index  BBB–/P  652  19,000  1/17/47  300 bp  (1,269) 
CMBX NA BBB– Index  BBB–/P  2,426  23,000  1/17/47  300 bp  101 
CMBX NA BBB– Index  BBB–/P  3,394  32,000  1/17/47  300 bp  159 
CMBX NA BBB– Index  BBB–/P  3,154  33,000  1/17/47  300 bp  (183) 
CMBX NA BBB– Index  BBB–/P  11,505  154,000  1/17/47  300 bp  (4,065) 
Goldman Sachs International             
CMBX NA BBB– Index  BBB–/P  (14)  2,000  5/11/63  300 bp  (161) 
CMBX NA BB Index  —  (95)  9,000  5/11/63  (500 bp)  1,133 
CMBX NA BB Index  —  (58)  6,000  5/11/63  (500 bp)  761 
CMBX NA BB Index  —  (43)  5,000  5/11/63  (500 bp)  640 
CMBX NA BB Index  —  90  4,000  5/11/63  (500 bp)  636 
CMBX NA BB Index  —  50  3,000  5/11/63  (500 bp)  460 
CMBX NA BB Index  —  31  3,000  5/11/63  (500 bp)  440 
CMBX NA BB Index  —  4  3,000  5/11/63  (500 bp)  413 
CMBX NA BB Index  —  (4)  2,000  1/17/47  (500 bp)  385 
CMBX NA BBB– Index  BBB–/P  (10)  1,000  5/11/63  300 bp  (84) 
CMBX NA BBB– Index  BBB–/P  (3)  1,000  5/11/63  300 bp  (76) 
CMBX NA BBB– Index  BBB–/P  (4)  1,000  5/11/63  300 bp  (78) 
CMBX NA BBB– Index  BBB–/P  (50)  3,000  5/11/63  300 bp  (270) 
CMBX NA BBB– Index  BBB–/P  (55)  5,000  5/11/63  300 bp  (422) 
CMBX NA BBB– Index  BBB–/P  (60)  6,000  5/11/63  300 bp  (501) 
CMBX NA BBB– Index  BBB–/P  240  8,000  1/17/47  300 bp  (569) 
CMBX NA BBB– Index  BBB–/P  374  9,000  1/17/47  300 bp  (536) 
CMBX NA BBB– Index  BBB–/P  388  9,000  1/17/47  300 bp  (522) 
CMBX NA BBB– Index  BBB–/P  362  9,000  1/17/47  300 bp  (548) 
CMBX NA BBB– Index  BBB–/P  362  9,000  1/17/47  300 bp  (548) 
CMBX NA BBB– Index  BBB–/P  394  13,000  1/17/47  300 bp  (920) 
CMBX NA BBB– Index  BBB–/P  2,497  18,000  1/17/47  300 bp  677 
CMBX NA BBB– Index  BBB–/P  2,921  22,000  1/17/47  300 bp  697 
CMBX NA BBB– Index  BBB–/P  7,362  37,000  1/17/47  300 bp  3,621 
JPMorgan Securities LLC             
CMBX NA BBB– Index  BBB–/P  14,093  167,000  5/11/63  300 bp  1,818 
CMBX NA BBB– Index  BBB–/P  443  8,000  1/17/47  300 bp  (366) 
CMBX NA BBB– Index  BBB–/P  633  12,000  1/17/47  300 bp  (580) 
CMBX NA BBB– Index  BBB–/P  2,909  22,000  1/17/47  300 bp  685 
CMBX NA BBB– Index  BBB–/P  3,265  27,000  1/17/47  300 bp  535 
Total    $65,127        $2,170 

 

*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, 2016. Securities rated by Putnam are indicated by “/P.” The Putnam rating categories are comparable to the Standard & Poor’s classifications.

32  Putnam VT Global Asset Allocation Fund 

 


CENTRALLY CLEARED CREDIT DEFAULT CONTRACTS OUTSTANDING at 6/30/16 (Unaudited)

          Payments  Unrealized 
    Upfront premium  Notional  Termination  received (paid) by  appreciation/ 
Referenced debt*  Rating***  received (paid)**  amount  Date  fund per annum  (depreciation) 
NA HY Series 25 Index  B+/P  $(6,227)  $959,310  12/20/20  500 bp  $34,972 
NA HY Series 26 Index  —  (4,094)  167,000  6/20/21  (500 bp)  1,524 
NA HY Series 26 Index  —  56,000  2,307,000  6/20/21  (500 bp)  (21,609) 
NA IG Series 26 Index  BBB+/P  (21,520)  1,850,000  6/20/21  100 bp  (705) 
Total    $24,159        $14,182 

 

*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, 2016. Securities rated by Putnam are indicated by “/P.” The Putnam rating categories are comparable to the Standard & Poor’s classifications.

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  $1,949,234  $989,348  $—­ 
Capital goods  4,778,208  572,320  —­ 
Communication services  2,310,669  841,149  271 
Conglomerates  22,195  197,351  —­ 
Consumer cyclicals  11,268,574  1,835,888  —­ 
Consumer staples  5,860,186  1,693,898  12,501 
Energy  3,829,681  767,029  50 
Financials  11,537,834  2,963,419  —­ 
Health care  9,808,434  1,458,428  —­ 
Technology  13,078,973  656,609  —­ 
Transportation  1,554,321  594,561  —­ 
Utilities and power  2,549,913  639,831  —­ 
Total common stocks  68,548,222  13,209,831  12,822 
Asset-backed securities  —­  159,000  —­ 
Convertible bonds and notes  —­  31,802  —­ 
Convertible preferred stocks  —­  17,645  —­ 
Corporate bonds and notes  —­  27,258,937  1­ 
Foreign government and agency bonds and notes  —­  597,655  — 
Investment companies  44,501  —­  —­ 
Mortgage-backed securities  —­  3,244,665  —­ 
Preferred stocks  16,878  —­  —­ 
Purchased options outstanding  —­  8,398  —­ 
Senior loans  —­  305,628  —­ 
U.S. government and agency mortgage obligations  —­  27,294,795  —­ 
U.S. treasury obligations  —­  142,765  —­ 
Warrants  —­  28,158  —­ 
Short-term investments  30,538,497  2,593,775  —­ 
Totals by level  $99,148,098  $74,893,054  $12,823 

 

Putnam VT Global Asset Allocation Fund  33 

 


    Valuation inputs  
Other financial instruments:  Level 1  Level 2  Level 3 
Forward currency contracts  $—­  $87,407  $—­ 
Futures contracts  163,213  —­  —­ 
Written options outstanding  —­  (478)  —­ 
Written swap options outstanding  —­  (20,362)  —­ 
TBA sale commitments  —­  (8,509,844)  —­ 
Interest rate swap contracts  —­  (52,721)  —­ 
Total return swap contracts  —­  (15,167)  —­ 
Credit default contracts  —­  (72,934)  —­ 
Totals by level  $163,213  $(8,584,099)  $—­ 

 

During the reporting period, transfers between Level 1 and Level 2 within the fair value hierarchy, if any (other than certain transfers involving non-U.S. equity securities as described in Note 1), did not represent, in the aggregate, more than 1% of the fund’s net assets measured as of the end of the period. Transfers are accounted for using the end of period pricing valuation method.

The following is a reconciliation of Level 3 assets as of the close of the reporting period:

        Change in net           
    Accrued    unrealized           
Investments in  Balance as of  discounts/  Realized  appreciation/  Cost of  Proceeds  Total transfers  Total transfers  Balance as of 
securities:  12/31/15  premiums  gain/(loss)  (depreciation)#  purchases  from sales  into Level 3†  out of Level 3†  6/30/16 
Common stocks*:                   
Communication services  $—  $—  $—  $(46,647)  $46,918  $—  $—  $—  $271 
Consumer staples  13,387  —  —  (886)  —  —  —  —  $12,501 
Energy  50  —  —  —  —  —  —  —  $50 
Financials  27,569  —  —  (8,454)  —  (19,115)  —  —  $— 
Total common stocks  $41,006  $—  $—  $(55,987)  $46,918  $(19,115)  $—  $—  $12,822 
Asset-backed securities  $2,958,000  —  —  —  —  (2,958,000)  —  —  $— 
Corporate bonds and notes  $1  —  —  —  —  —  —  —  $1 
Mortgage-backed securities  $75,116  (2,666)  (835)  2,967  —  (34,263)  —  (40,319)  $— 
Totals  $3,074,123  $(2,666)  $(835)  $(53,020)  $46,918  $(3,011,378)  $—  $(40,319)  $12,823 

 

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

† Transfers during the reporting period are accounted for using the end of period market value and did not represent, in the aggregate, more than 1% of the fund’s net assets measured as of the end of the period.

# Includes ($47,533) related to Level 3 securities still held at period end. Total change in unrealized appreciation/(depreciation) for securities (including Level 1 and Level 2) can be found in the Statement of operations.

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

34  Putnam VT Global Asset Allocation Fund 

 


Statement of assets and liabilities
6/30/16 (Unaudited)

Assets   
Investment in securities, at value, including $1,424,312 of securities on loan (Note 1):   
Unaffiliated issuers (identified cost $134,865,759)  $142,081,464 
Affiliated issuers (identified cost $31,972,511) (Notes 1 and 5)  31,972,511 
Cash  2,857 
Foreign currency (cost $117,639) (Note 1)  117,662 
Dividends, interest and other receivables  697,395 
Receivable for shares of the fund sold  76,955 
Receivable for investments sold  1,094,206 
Receivable for sales of delayed delivery securities (Note 1)  4,368,648 
Receivable for variation margin (Note 1)  129,485 
Unrealized appreciation on forward currency contracts (Note 1)  460,491 
Unrealized appreciation on OTC swap contracts (Note 1)  207,896 
Premium paid on OTC swap contracts (Note 1)  2,214 
Total assets  181,211,784 
 
Liabilities   
Payable for investments purchased  906,433 
Payable for purchases of delayed delivery securities (Note 1)  22,434,036 
Payable for shares of the fund repurchased  146,083 
Payable for compensation of Manager (Note 2)  74,006 
Payable for custodian fees (Note 2)  33,998 
Payable for investor servicing fees (Note 2)  16,298 
Payable for Trustee compensation and expenses (Note 2)  127,106 
Payable for administrative services (Note 2)  577 
Payable for distribution fees (Note 2)  8,532 
Payable for variation margin (Note 1)  28,710 
Unrealized depreciation on OTC swap contracts (Note 1)  220,893 
Premium received on OTC swap contracts (Note 1)  67,341 
Unrealized depreciation on forward currency contracts (Note 1)  373,084 
Written options outstanding, at value (premiums $41,874) (Notes 1 and 3)  20,840 
TBA sale commitments, at value (proceeds receivable $8,494,883) (Note 1)  8,509,844 
Collateral on securities loaned, at value (Note 1)  1,434,014 
Collateral on certain derivative contracts, at value (Note 1)  142,765 
Other accrued expenses  87,269 
Total liabilities  34,631,829 
 
Net assets  $146,579,955 
 
Represented by   
Paid-in capital (Unlimited shares authorized) (Notes 1 and 4)  $138,304,315 
Undistributed net investment income (Note 1)  1,112,568 
Accumulated net realized loss on investments and foreign currency transactions (Note 1)  (272,065) 
Net unrealized appreciation of investments and assets and liabilities in foreign currencies  7,435,137 
Total — Representing net assets applicable to capital shares outstanding  $146,579,955 
 
Computation of net asset value Class IA   
Net assets  $105,104,190 
Number of shares outstanding  6,707,132 
Net asset value, offering price and redemption price per share (net assets divided by number of shares outstanding)  $15.67 
 
Computation of net asset value Class IB   
Net assets  $41,475,765 
Number of shares outstanding  2,617,282 
Net asset value, offering price and redemption price per share (net assets divided by number of shares outstanding)  $15.85 

 

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

 

Putnam VT Global Asset Allocation Fund  35 

 


Statement of operations
Six months ended 6/30/16 (Unaudited)

Investment income   
Dividends (net of foreign taxes paid and refunded of $24,224)  $1,078,298 
Interest (including interest income of $64,218 from investments in affiliated issuers) (Note 5)  944,822 
Securities lending (Note 1)  10,587 
Total investment income  2,033,707 
 
Expenses   
Compensation of Manager (Note 2)  437,081 
Investor servicing fees (Note 2)  51,642 
Custodian fees (Note 2)  41,094 
Trustee compensation and expenses (Note 2)  6,675 
Distribution fees (Note 2)  51,940 
Administrative services (Note 2)  1,705 
Auditing and tax fees  62,083 
Other  31,713 
Fees waived and reimbursed by Manager (Note 2)  (2,138) 
Total expenses  681,795 
 
Expense reduction (Note 2)  (1,147) 
Net expenses  680,648 
 
Net investment income  1,353,059 
 
Net realized gain on investments (Notes 1 and 3)  643,241 
Net realized loss on swap contracts (Note 1)  (98,359) 
Net realized gain on futures contracts (Note 1)  595,356 
Net realized loss on foreign currency transactions (Note 1)  (233,756) 
Net realized loss on written options (Notes 1 and 3)  (6,046) 
Net unrealized appreciation of assets and liabilities in foreign currencies during the period  101,496 
Net unrealized depreciation of investments, futures contracts, swap contracts, written options, and TBA sale commitments during the period  (740,145) 
Net gain on investments  261,787 
 
Net increase in net assets resulting from operations  $1,614,846 

 

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

 

36  Putnam VT Global Asset Allocation Fund 

 


Statement of changes in net assets

  Six months ended  Year ended 
  6/30/16*  12/31/15 
Decrease in net assets     
Operations:     
Net investment income  $1,353,059  $2,454,890 
Net realized gain on investments and foreign currency transactions  900,436  12,051,991 
Net unrealized depreciation of investments and assets and liabilities in foreign currencies  (638,649)  (13,400,268) 
Net increase in net assets resulting from operations  1,614,846  1,106,613 
Distributions to shareholders (Note 1):     
From ordinary income     
Net investment income     
Class IA  (2,372,227)  (3,050,541) 
Class IB  (809,323)  (1,070,274) 
Net realized short-term gain on investments     
Class IA  (1,029,220)  (3,024,960) 
Class IB  (403,431)  (1,196,784) 
From net realized long-term gain on investments     
Class IA  (6,551,867)  (8,646,397) 
Class IB  (2,568,185)  (3,420,830) 
Increase (decrease) from capital share transactions (Note 4)  2,581,316  (7,472,183) 
Total decrease in net assets  (9,538,091)  (26,775,356) 
Net assets:     
Beginning of period  156,118,046  182,893,402 
End of period (including undistributed net investment income of $1,112,568 and $2,941,059, respectively)  $146,579,955  $156,118,046 

 

* Unaudited.

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

Putnam VT Global Asset Allocation Fund  37 

 


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 (%)
Class IA­                           
6/30/16†  $17.06­  .15­  .05­  .20­  (.38)  (1.21)  (1.59)  $15.67­  1.29*  $105,104­  .43*e  .95*e  185*f 
12/31/15­  19.21­  .27­  (.11)  .16­  (.48)  (1.83)  (2.31)  17.06­  .42­  112,027­  .86­  1.51­  339f 
12/31/14­  18.77­  .32­  1.40­  1.72­  (.51)  (.77)  (1.28)  19.21­  9.66­  131,554­  .87­  1.73­  339f 
12/31/13­  16.01­  .31­  2.81­  3.12­  (.36)  —­  (.36)  18.77­  19.78­  139,872­  .89­  1.82­  164g 
12/31/12­  14.11­  .34­  1.71­  2.05­  (.15)  —­  (.15)  16.01­  14.58­  135,792­  .89­  2.20­  200g 
12/31/11­  14.79­  .33­  (.33)  —h  (.68)  —­  (.68)  14.11­  (.18)  138,271­  .88­  2.27­  131g 
Class IB­                           
6/30/16†  $17.21­  .13­  .05­  .18­  (.33)  (1.21)  (1.54)  $15.85­  1.16*  $41,476­  .55*e  .83*e  185*f 
12/31/15­  19.35­  .23­  (.12)  .11­  (.42)  (1.83)  (2.25)  17.21­  .17­  44,091­  1.11­  1.26­  339f 
12/31/14­  18.88­  .28­  1.41­  1.69­  (.45)  (.77)  (1.22)  19.35­  9.42­  51,339­  1.12­  1.48­  339f 
12/31/13­  16.10­  .27­  2.83­  3.10­  (.32)  —­  (.32)  18.88­  19.49­  57,856­  1.14­  1.58­  164g 
12/31/12­  14.20­  .30­  1.71­  2.01­  (.11)  —­  (.11)  16.10­  14.20­  71,616­  1.14­  1.96­  200g 
12/31/11­  14.88­  .29­  (.32)  (.03)  (.65)  —­  (.65)  14.20­  (.42)  70,624­  1.13­  2.02­  131g 

 

* 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 Reflects a voluntary waiver of certain fund expenses in effect during the period. As a result of such waivers, the expenses of each class reflect a reduction of less than 0.01% as a percentage of average net assets (Note 2).

f Portfolio turnover includes TBA purchase and sale commitments.

g Portfolio turnover excludes TBA purchase and sale commitments. Including TBA purchase and sale commitments to conform with current year presentation, the portfolio turnover would have been the following:

  Portfolio turnover % 
December 31, 2013  376% 
December 31, 2012  409 
December 31, 2011  372 

 

h Amount represents less than $0.01 per share.

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

38  Putnam VT Global Asset Allocation Fund 

 


Notes to financial statements 6/30/16 (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, 2016 through June 30, 2016.

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 goal 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.

The fund has entered into contractual arrangements with an investment adviser, administrator, distributor, shareholder servicing agent and custodian, who each provide services to the fund. Unless expressly stated otherwise, shareholders are not parties to, or intended beneficiaries of these contractual arrangements, and these contractual arrangements are not intended to create any shareholder right to enforce them against the service providers or to seek any remedy under them against the service providers, either directly or on behalf of the fund.

Under the fund’s Declaration of Trust, any claims asserted against or on behalf of the Putnam Funds, including claims against Trustees and Officers, must be brought in state and federal courts located within the Commonwealth of Massachusetts.

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 Portfolio securities and other investments are valued using policies and procedures adopted by the Board of Trustees. The Trustees have formed a Pricing Committee to oversee the implementation of these procedures and have delegated responsibility for valuing the fund’s assets in accordance with these procedures to Putnam Management. Putnam Management has established an internal Valuation Committee that is responsible for making fair value determinations, evaluating the effectiveness of the pricing policies of the fund and reporting to the Pricing Committee.

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 (including short-term investments with remaining maturities of 60 days or less) 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.

Many securities markets and exchanges outside the U.S. close prior to the scheduled 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 scheduled 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. At the close of the reporting period, fair value pricing was used for certain foreign securities in the portfolio. 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, recovery rates, sales and other multiples and resale restrictions. These securities are classified as Level 2 or as Level 3 depending on the priority of the significant inputs.

To assess the continuing appropriateness of fair valuations, the Valuation Committee reviews and affirms the reasonableness of such valuations on a regular basis after considering all relevant information that is reasonably available. 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

Putnam VT Global Asset Allocation Fund  39 

 


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.

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 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 returns on securities owned, to enhance the return on a security owned, to gain exposure to securities 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 to currencies.

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.

40  Putnam VT Global Asset Allocation Fund 

 


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 clearing-house 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.

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 manage exposure to specific securities, to gain exposure to a basket of securities, 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.

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, to sell mortgage-backed securities it owns under delayed delivery arrangements or to take a short position in mortgage-backed securities. Proceeds of TBA sale commitments are not received until the contractual settlement date. During the time a TBA sale commitment is outstanding, either equivalent deliverable securities or an offsetting TBA purchase commitment deliverable on or before the sale commitment date are held as “cover” for the transaction, or other liquid assets in an amount equal to the notional value of the TBA sale commitment are segregated. 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 its obligations. 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 purchase commitments outstanding at period end, if any, are listed within the fund’s portfolio and TBA sale commitments outstanding 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,

Putnam VT Global Asset Allocation Fund  41 

 


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 $255,141 on open derivative contracts subject to the Master Agreements. Collateral posted by the fund at period end for these agreements totaled $259,951 and may include amounts related to unsettled agreements.

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 remaining maturities of the securities lending transactions are considered overnight and continuous. 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 $1,434,014 and the value of securities loaned amounted to $1,428,157. 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 syndicated unsecured committed line of credit provided by State Street ($292.5 million) and Northern Trust Company ($100 million) and a $235.5 million unsecured uncommitted line of credit 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 higher of (1) the Federal Funds rate and (2) the overnight LIBOR 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% of the committed line of credit and 0.04% of the uncommitted line of credit has been paid by the participating funds. In addition, a commitment fee of 0.16% 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 $167,863,393, resulting in gross unrealized appreciation and depreciation of $12,243,315 and $6,052,733, respectively, or net unrealized appreciation of $6,190,582.

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 44.6% 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 all open-end funds sponsored by Putnam Management (excluding net assets of funds that are invested in, or that are invested in by, other Putnam funds to the extent necessary to avoid “double counting” of those assets). 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. 

 

For the reporting period, the management fee represented an effective rate (excluding the impact from any expense waivers in effect) of 0.296% of the fund’s average net assets.

Putnam Management has contractually agreed, through April 30, 2018, 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

42  Putnam VT Global Asset Allocation Fund 

 


year-to-date period. During the reporting period, the fund’s expenses were not reduced as a result of this limit.

Putnam Management may from time to time voluntarily undertake to waive fees and/or reimburse certain fund expenses. Any such waiver or reimbursement would be voluntary and may be modified or discontinued by Putnam Management at any time without notice. For the reporting period, Putnam Management voluntarily waived $2,138.

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. PIL did not manage any portion of the assets of the fund during the reporting period. If Putnam Management were to engage the services of PIL, Putnam Management would pay 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. PAC did not manage any portion of the assets of the fund during the reporting period. If Putnam Management or PIL were to engage the services of PAC, Putnam Management or PIL, as applicable, would pay 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 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 0.07% of the fund’s average daily net assets. During the reporting period, the expenses for each class of shares related to investor servicing fees were as follows:

Class IA   $37,027 
Class IB   14,615 
Total   $51,642 

 

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 reduced by $27 under the expense offset arrangements and by $1,120 under the brokerage/service arrangements.

Each Independent Trustee of the fund receives an annual Trustee fee, of which $109, 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   $51,940 

 

Note 3 — Purchases and sales of securities

During the reporting period, the cost of purchases and the proceeds from sales, excluding short-term investments, were as follows:

  Cost of purchases  Proceeds from sales 
Investments in securities, including     
TBA commitments (Long-term)  $254,127,280  $264,671,687 
U.S. government securities (Long-term)  —  — 
Total  $254,127,780  $264,671,687 

 

The fund may purchase or sell investments from or to other Putnam funds in the ordinary course of business, which can reduce the fund’s transaction costs, at prices determined in accordance with SEC requirements and policies approved by the Trustees. During the reporting period, purchases or sales from or to other Putnam funds, if any, did not represent more than 5% of the fund’s total cost of purchases and/or total proceeds from sales.

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

  Written swap option  Written swap option  Written option  Written option 
  contract amounts  premiums  contract amounts  premiums 
Written options outstanding at the         
beginning of the reporting period  $218,000  $38,821  GBP —  $— 
Options opened  —  —  GBP 34  3,053 
Options exercised  —  —  GBP —  — 
Options expired  —  —  GBP —  — 
Options closed  —  —  GBP —  — 
Written options outstanding at the         
end of the reporting period  $218,000  $38,821  GBP 34  $3,053 

 

Putnam VT Global Asset Allocation Fund  43 

 


Note 4 — Capital shares

At the close of the reporting period, there were 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 6/30/16  Year ended 12/31/15  Six months ended 6/30/16  Year ended 12/31/15 
 
  Shares  Amount  Shares  Amount  Shares  Amount  Shares  Amount 
Shares sold  50,052  $790,229  93,406  $1,647,993  76,791  $1,241,376  239,542  $4,254,410 
Shares issued in connection with                 
reinvestment of distributions  645,063  9,953,314  835,996  14,721,898  242,058  3,780,939  319,544  5,687,888 
  695,115  10,743,543  929,402  16,369,891  318,849  5,022,315  559,086  9,942,298 
Shares repurchased  (554,029)  (8,902,526)  (1,209,955)  (22,054,968)  (264,093)  (4,282,016)  (649,732)  (11,729,404) 
Net increase (decrease)  141,086  $1,841,017  (280,553)  $(5,685,077)  54,756  $740,299  (90,646)  $(1,787,106) 

 

Note 5 — Affiliated transactions

Transactions during the reporting period with Putnam Money Market Liquidity Fund and Putnam Short Term Investment Fund, which are under common ownership or 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 Money Market Liquidity Fund *  $—  $4,631,792  $2,621,749  $673  $2,010,043 
Putnam Short Term Investment Fund *  28,136,598  10,526,168  10,134,312  63,545  28,528,454 
Totals  $28,136,598  $15,157,960  $12,756,061  $64,218  $30,538,497 

 

* Management fees charged to Putnam Money Market Liquidity Fund and 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.

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 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 based on an average of the holdings at the end of each fiscal quarter:

Purchased equity option contracts (contract amount)  $20 
Purchased currency options (contract amount)  $750,000 
Written equity option contracts (contract amount) (Note 3)  $20 
Written swap option contracts (contract amount) (Note 3)  $220,000 
Futures contracts (number of contracts)  400 
Forward currency contracts (contract amount)  $46,000,000 
Centrally cleared interest rate swap contracts (notional)  $18,500,000 
OTC total return swap contracts (notional)  $16,800,000 
OTC credit default contracts (notional)  $970,000 
Centrally cleared credit default contracts (notional)  $5,100,000 
Warrants (number of warrants)  6,000 

 

44  Putnam VT Global Asset Allocation Fund 

 


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 —    Payables, Net assets —   
  Unrealized appreciation  $86,581*  Unrealized depreciation  $159,515* 
Foreign exchange contracts  Investments, Receivables  468,195  Payables  373,084 
Equity contracts  Receivables, Net assets —    Payables, Net assets —   
  Unrealized appreciation  253,192*  Unrealized depreciation  283,061* 
Interest rate contracts  Receivables, Net assets —    Payables, Net assets —   
  Unrealized appreciation  554,649*  Unrealized depreciation  421,443* 
Total    $1,362,617    $1,237,103 

 

* Includes cumulative appreciation/depreciation of futures contracts and/or 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 in 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  Options  Futures  contracts  Swaps  Total 
Credit contracts  $—  $—  $—  $—  $(122,195)  $(122,195) 
Foreign exchange contracts  —  —  —  (238,061)  —  $(238,061) 
Equity contracts  (1,039)  —  357,612  —  160,688  $517,261 
Interest rate contracts  —  (6,046)  237,744  —  (136,852)  $94,846 
Total  $(1,039)  $(6,046)  $595,356  $(238,061)  $(98,359)  $251,851 

 

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  $—  $(3,361)  $—  $—  $22,586  $19,225 
Foreign exchange contracts  —  —  —  103,211  —  $103,211 
Equity contracts  4,512  (1,230)  (67,180)  —  15,064  $(48,834) 
Interest rate contracts  —  3,484  234,123  —  (59,860)  $177,747 
Total  $4,512  $(1,107)  $166,943  $103,211  $(22,210)  $251,349 

 

Putnam VT Global Asset 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, if any, see Note 1. 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.  JPMorgan Securities LLC  Merrill Lynch, Pierce, Fenner & Smith, Inc.  Royal Bank of Scotland PLC (The)  State Street Bank and Trust Co.  UBS AG  WestPac Banking Corp.  Total 
Assets:                                 
Centrally cleared interest rate                                 
swap contracts§  $—  $—  $10,218  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $10,218 
OTC Total return swap contracts*#  —  1,463  —  177,014  3,259  —  —  —  —  —  —  —  —  —  —  181,736 
OTC Credit default contracts*#  —  —  —  —  14,056  —  4,893  —  —  —  —  —  —  —  —  18,949 
Centrally cleared credit de-                                 
fault contracts§  —  —  7,520  —  —  —  —  —  —  —  —  —  —  —  —  7,520 
Futures contracts§  —  —  —  —  —  —  —  —  —  —  111,747  —  —  —  —  111,747 
Forward currency contracts#  46,802  26,740  —  32,900  92,998  2,650  46,516  137,398  46,972  —  —  11,773  5,462  10,280  —  460,491 
Purchased options** #  —  —  —  8,398  —  —  —  —  —  —  —  —  —  —  —  8,398 
Total Assets  $46,802  $28,203  $17,738  $218,312  $110,313  $2,650  $51,409  $137,398  $46,972  $—  $111,747  $11,773  $5,462  $10,280  $—  $799,059 
Liabilities:                                 
Centrally cleared interest rate                                 
swap contracts§  —  —  6,967  —  —  —  —  —  —  —  —  —  —  —  —  6,967 
OTC Total return swap contracts*#  —  4,001  —  183,960  2,977  —  5,965  —  —  —  —  —  —  —  —  196,903 
OTC Credit default contracts*#  3,160  —  —  —  44,551  —  14,944  —  —  19,251  —  —  —  —  —  81,906 
Centrally cleared credit de-                                 
fault contracts§  —  —  9,833  —  —  —  —  —  —  —  —  —  —  —  —  9,833 
Futures contracts§  —  —  —  —  —  —  —  —  —  —  11,910  —  —  —  —  11,910 
Forward currency contracts#  15  16,658  —  181,445  22,842  11,507  11,105  1,836  20,699  —  —  15,193  19,116  72,151  517  373,084 
Written swap options #  —  —  —  —  —  —  —  —  20,362  —  —  —  —  —  —  20,362 
Written options #  —  —  —  478  —  —  —  —  —  —  —  —  —  —  —  478 
Total Liabilities  $3,175  $20,659  $16,800  $365,883  $70,370  $11,507  $32,014  $1,836  $41,061  $19,251  $11,910  $15,193  $19,116  $72,151  $517  $701,443 
Total Financial and Derivative                                 
Net Assets  $43,627  $7,544  $938  $(147,571)  $39,943  $(8,857)  $19,395  $135,562  $5,911  $(19,251)  $99,837  $(3,420)  $(13,654)  $(61,871)  $(517)  $97,616 
Total collateral received (pledged)† ##  $—  $—  $—  $(147,571)  $—  $—  $—  $135,562  $—  $—  $—  $—  $—  $(61,871)  $—   
Net amount  $43,627  $7,544  $938  $—  $39,943  $(8,857)  $19,395  $—  $5,911  $(19,251)  $99,837  $(3,420)  $(13,654)  $—  $(517)   

 

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

** Included with Investments in securities 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 

 


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, 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 discussed with representatives of Putnam Management the annual contract review materials furnished to the Contract Committee during the course of the previous year’s review, identifying 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 and its affiliates 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 2016, 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 an additional request 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 2016, the Contract Committee met in executive session to discuss and consider its recommendations with respect to the continuance of the contracts. At the Trustees’ June 24, 2016 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 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, 2016. (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, the costs incurred by Putnam Management in providing services to the fund, and the continued application of certain reductions and waivers noted below; 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 funds’ current fee arrangements under the management contracts were first 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.

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 a few instances, funds have implemented so-called “all-in” management fees covering substantially all routine fund operating costs.)

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 industry — that suggest that consideration of fee changes might be warranted. The Trustees concluded that the circumstances did not indicate that changes to the management fee structure for your fund would be appropriate at this time.

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 rates 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 support the effort to have fund expenses meet competitive standards, the Trustees and Putnam

48  Putnam VT Global Asset Allocation Fund 

 


Management have implemented a contractual expense limitation applicable to specified open-end funds, including your fund, of 20 basis points on so-called “other expenses” (i.e., all expenses exclusive of management fees, distribution fees, investor servicing fees, investment-related expenses, interest, taxes, brokerage commissions, acquired fund fees and expenses and extraordinary expenses). This expense limitation attempts to maintain competitive expense levels for the funds. Most funds, including your fund, had sufficiently low expenses that this expense limitation was not operative during their fiscal years ending in 2015. Putnam Management has agreed to maintain this expense limitation until at least April 30, 2018. Putnam Management’s support for this expense limitation arrangement 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, 2015. The first quintile represents the least expensive funds and the fifth quintile the most expensive funds. The fee and expense data reported by Lipper as of December 31, 2015 reflected the most recent fiscal year-end data available in Lipper’s database at that time.

In connection with their review of fund management fees and total expenses, 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 between fund shareholders and Putnam Management 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 included information regarding fees charged by Putnam Management and its affiliates to institutional clients such as defined benefit pension plans, college endowments, sub-advised third-party mutual funds, 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 these clients and the Putnam 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, among other things, 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 other 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 2015 was a year of mixed performance results for the Putnam funds, with generally strong results for the international equity, global sector and global asset allocation funds, but generally disappointing results for the U.S. and small-cap equity, Spectrum and fixed income funds. They noted that the longer-term performance of the Putnam funds generally continued to be strong, exemplified by the fact that the Putnam funds were ranked by the Barron’s/Lipper Fund Families survey as the 18th-best performing mutual fund complex out of 58 complexes for the five-year period ended December 31, 2015. They also noted, however, the disappointing investment performance of some funds for periods ended December 31, 2015 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.

For purposes of evaluating investment performance, the Trustees generally focus on a competitive industry ranking of each fund’s total net return over a one-year, three-year and five-year period. For a number of Putnam funds with relatively unique investment mandates for which meaningful competitive performance rankings are not considered to be available, the Trustees evaluated performance based on their total gross and net returns and, in most cases, comparisons of those 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

Putnam VT Global Asset Allocation Fund  49 

 


one-year, three-year and five-year periods ended December 31, 2015 (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 three-year and five-year periods ended December 31, 2015, 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, 2015, there were 229, 192 and 156 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.)

The Trustees also considered Putnam Management’s continued efforts to support fund performance through initiatives including structuring compensation for portfolio managers and research analysts to enhance accountability for fund performance, emphasizing accountability in the portfolio management process, and affirming its commitment to a fundamental-driven approach to investing. The Trustees noted further that Putnam Management continued to strengthen its fundamental research capabilities by adding new investment personnel.

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 (including third-party research and market data) 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.

50  Putnam VT Global Asset Allocation Fund 

 

 

 

 

 

 

 


 

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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, 2016, are available in the Individual Investors section of putnam.com and on the Securities and Exchange Commission’s [SEC] 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 Form N-Q on the SEC’s website at www.sec.gov. In addition, the fund’s Form 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-Advisors  1-800-225-1581  Robert J. Darretta 
Putnam Investments Limited  Katinka Domotorffy 
57–59 St James’s Street  Custodian  John A. Hill 
London, England SW1A 1LD  State Street Bank and Trust Company  Paul L. Joskow 
    Kenneth R. Leibler 
The Putnam Advisory Company, LLC  Legal Counsel  Robert E. Patterson 
One Post Office Square  Ropes & Gray LLP  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.  VTSA062 301624 8/16 

 

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 26, 2016
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 26, 2016
By (Signature and Title):
/s/ Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer

Date: August 26, 2016