N-CSR 1 a_vtglobalassetallocation.htm PUTNAM VARIABLE TRUST a_vtglobalassetallocation.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: 100 Federal Street, Boston, Massachusetts 02110
Name and address of agent for service: Robert T. Burns, Vice President
100 Federal Street
Boston, Massachusetts 02110
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, 2018
Date of reporting period : January 1, 2018 — December 31, 2018



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

February 14, 2019

Dear Shareholder:

Global financial markets encountered challenges in the final months of 2018. December was difficult for stock markets worldwide, and most major indexes finished the year with losses. Among the issues that contributed to the downturn were uncertainty about monetary policy, a slowing Chinese economy, and the U.S.–China trade dispute. Fixed-income markets were less volatile than stocks, and higher quality bonds benefited from a flight to safety amid the turmoil.

Although no one can predict the direction of the markets in the months ahead, Putnam’s experienced investment professionals actively seek to position their fund portfolios for all types of conditions. They take a research-intensive approach to investing that includes risk management strategies designed to serve investors through changing markets. In all environments, we believe investors should remain focused on time-tested approaches: maintain a well-diversified portfolio, think about long-term goals, and speak regularly with a financial advisor.

Thank you for investing with Putnam.



Performance summary (as of 12/31/18)

Investment objective
Long-term return consistent with preservation of capital

Net asset value December 31, 2018 
 
Class IA: $15.17  Class IB: $15.35 

 

Total return at net asset value     
        Putnam 
        Balanced 
(as of  Class IA  Class IB  Russell 3000  Blended 
12/31/18)  shares*  shares†  Index  Benchmark 
1 year  –7.02%  –7.26%  –5.24%  –3.90% 
5 years  26.69  25.12  46.34  29.07 
Annualized  4.84  4.58  7.91  5.24 
10 years  170.03  163.64  244.95  141.53 
Annualized  10.44  10.18  13.18  9.22 
Life  805.85  758.31  1,861.27  — 
Annualized  7.39  7.20  10.11  — 

 

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.

Frank Russell Company is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company.

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 Bloomberg 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

How was the investment environment for the 12-month reporting period ended December 31, 2018?

Global markets were marked by a series of ups and downs during the 12-month period. Falling stock prices, a strong U.S. dollar, weakening global growth, rising interest rates, and concerns about President Donald Trump’s trade and economic policies set investors on edge. The MSCI World Index, a broad global equity index composed of large and mid-cap stocks, finished the period down 8.71%, and the S&P 500 Index dropped 4.38%. Volatility also increased across many financial markets.

Treasury yields moved higher on the short end of the yield curve and lower on the intermediate and long end. The widely watched spread between two- and 10-year Treasury yields narrowed following the U.S. Federal Reserve’s interest-rate hikes in 2018. The decline in long-term yields is a sign that bond investors expect the economy to slow. The Fed raised its benchmark rate to a range of 2.25% to 2.50% in December, rounding out four rate hikes in 2018. As a result, the U.S. dollar appreciated against many global currencies. However, the European Central Bank left rates unchanged in 2018 and ended its multi-trillion bond-buying program in December.

Economic indicators deteriorated globally, including in China and the eurozone. But the U.S. economy held steady; the economy grew at a 3.5% annual rate in the third quarter of 2018 after expanding 4.2% in the second quarter, buoyed by government spending and tax cuts. Markets in Europe struggled due to political concerns, including Brexit. An escalation in the U.S.–China trade dispute also rattled global financial markets and businesses.

How did the fund perform?

For the 12-month period, the fund’s class IA shares declined 7.02%. The custom Putnam Balanced Blended Benchmark fell 3.90%, and the all-stock benchmark, the Russell 3000 Index, dropped 5.24%.

What strategies affected performance?

Negative performance was primarily the result of poor asset class returns for the period. Our dynamic allocation decisions, particularly in equities and commodities, detracted from results. In equities, we increased our allocation in the fourth quarter, anticipating a market bounce that didn’t materialize before the end of 2018. The commodities sector struggled during the dramatic sell-off in crude oil prices. This occurred when the U.S. government granted waivers from sanctions to some of the biggest buyers of oil exports from Iran.

Our active implementation decisions and security selections also detracted from performance. They were driven by our quantitative strategies in U.S. large-cap and international developed equity markets. Our team analyzes stock market history to identify characteristics of stocks [factors] that have excess risk-adjusted returns. Despite a strong long-term relationship between these factors and positive stock performance, the strategies underperformed.

The fund used futures to manage exposure to the markets, hedge prepayment and interest-rate risks, gain exposure to interest rates, and equitize cash.

What is your outlook for 2019?

We believe that economic growth in the United States is likely to slow this year. Fed Chair Jerome Powell said in January 2019 that low inflation would allow the Fed to be “patient” in deciding whether to continue raising interest rates. A peak in global growth momentum, mounting trade risks, and a more restrictive Fed could lead to higher market volatility, in our view. We expect bond yields to continue to drift higher in 2019 as interest-rate normalization continues globally.

Although we believe that stock and bond market volatility are likely to persist in 2019, we increased our exposure to equity, inflation [commodities], and credit risks, looking to take advantage of any short-term market weakness. The portfolio has an overweight in U.S. equities and commodities. We are neutral on high-yield credit and slightly underweight in interest-rate-sensitive fixed-income assets. For U.S. stocks, valuations are more appealing, and companies may return to buying back their own shares, in our view. We are constructive on commodities. In terms of credit, we recently upgraded our position due to positive indications from our quantitative model. We believe fundamentals are also better in this sector following third-quarter 2018 earnings reports.

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. The value of investments in the fund’s portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general economic, political or financial market conditions, investor sentiment and market perceptions, government actions, geopolitical events or changes, and factors related to a specific issuer, asset class, geography, industry, or sector. These and other factors may also lead to increased volatility and reduced liquidity in the fund’s portfolio holdings. 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

2 Putnam VT Global Asset Allocation Fund 

 


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 Co-Head of Global Asset Allocation. He has been in the investment industry since he joined Putnam in 1994.

Robert J. Schoen and Jason R. Vaillancourt, CFA, are also Portfolio Managers of the fund.

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

ABOUT DERIVATIVES

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

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

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

Putnam VT Global Asset Allocation Fund 3 

 


Understanding your fund’s expenses

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

Review your fund’s expenses

The 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 7/1/18 to 12/31/18. 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 12/31/17  0.86%  1.11% 
Annualized expense ratio for the six-month     
period ended 12/31/18*  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.

*For the fund’s most recent fiscal half year; may differ from expense ratios based on one-year data in the financial highlights.

Expenses per $1,000       
      Expenses and value for a 
  Expenses and value for a  $1,000 investment, assuming 
  $1,000 investment, assuming  a hypothetical 5% annualized 
  actual returns for the  return for the 6 months 
  6 months ended 12/31/18    ended 12/31/18   
  Class IA  Class IB    Class IA  Class IB 
Expenses paid         
per $1,000*†  $4.19  $5.40    $4.38  $5.65 
Ending value         
(after         
expenses)  $930.70  $929.70    $1,020.87  $1,019.61 

 

*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 12/31/18. 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 

 


Report of Independent Registered Public Accounting Firm

To the Trustees of Putnam Variable Trust
and Shareholders of Putnam VT Global Asset Allocation Fund

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the fund’s portfolio, of Putnam VT Global Asset Allocation Fund (one of the funds constituting Putnam Variable Trust, referred to hereafter as the “Fund”) as of December 31, 2018, the related statement of operations for the year ended December 31, 2018, the statement of changes in net assets for each of the two years in the period ended December 31, 2018, including the related notes, and the financial highlights for each of the five years in the period ended December 31, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2018 and the financial highlights for each of the five years in the period ended December 31, 2018 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Boston, Massachusetts
February 14, 2019

We have served as the auditor of one or more investment companies in the Putnam Investments family of mutual funds since at least 1957. We have not been able to determine the specific year we began serving as auditor.

  Putnam VT Global Asset Allocation Fund 5 

 


The fund’s portfolio 12/31/18

COMMON STOCKS (56.1%)*   Shares   Value 
Basic materials (2.0%)     
Anglo American PLC (United Kingdom)   4,445   $99,023 
ArcelorMittal SA (France)   2,854   59,317 
Arkema SA (France)   640   54,967 
BASF SE (Germany)   1,650   114,185 
BlueScope Steel, Ltd. (Australia)   8,168   63,045 
Boliden AB (Sweden)   804   17,415 
Celanese Corp.   1,382   124,339 
CIMIC Group, Ltd. (Australia)   1,124   34,364 
Covestro AG (Germany)   1,218   60,259 
Evonik Industries AG (Germany)   868   21,680 
Freeport-McMoRan, Inc. (Indonesia)   28,115   289,866 
Glencore PLC (United Kingdom)   4,914   18,248 
HOCHTIEF AG (Germany)   280   37,759 
Huntsman Corp.   6,733   129,880 
Kajima Corp. (Japan)   2,300   30,831 
LyondellBasell Industries NV Class A   5,102   424,282 
Mitsubishi Chemical Holdings Corp. (Japan)   3,400   25,579 
Mitsubishi Gas Chemical Co., Inc. (Japan)   1,400   20,915 
Packaging Corp. of America   1,810   151,063 
Rio Tinto PLC (United Kingdom)   3,635   172,817 
Shimizu Corp. (Japan)   2,700   22,189 
Sika AG (Switzerland)   99   12,550 
South32, Ltd. (Australia)   18,890   44,567 
Steel Dynamics, Inc.   2,806   84,292 
Sumitomo Chemical Co., Ltd. (Japan)   10,200   49,882 
Taisei Corp. (Japan)   2,600   110,539 
UPM-Kymmene OYJ (Finland)   3,316   84,155 
Westlake Chemical Corp.   1,084   71,728 
Weyerhaeuser Co. R   4,225   92,359 
    2,522,095 
Capital goods (3.9%)     
ACS Actividades de Construccion y Servicios     
SA (Spain)   2,531   98,103 
Allison Transmission Holdings, Inc.   3,752   164,750 
Berry Plastics Group, Inc. †   2,680   127,380 
Boeing Co. (The)   4,274   1,378,365 
Cummins, Inc.   2,475   330,759 
Curtiss-Wright Corp.   287   29,308 
Faurecia SA (France)   1,915   72,559 
HD Supply Holdings, Inc. †   2,587   97,064 
Hitachi, Ltd. (Japan)   4,900   130,251 
Honeywell International, Inc.   3,364   444,452 
Ingersoll-Rand PLC   3,336   304,343 
Lockheed Martin Corp.   2,071   542,271 
Pentair PLC   2,514   94,979 
Raytheon Co.   1,710   262,229 
Republic Services, Inc.   1,711   123,346 
Resideo Technologies, Inc. †   4,776   98,147 
Safran SA (France)   48   5,797 
Sandvik AB (Sweden)   8,600   122,601 
Teledyne Technologies, Inc. †   203   42,035 
Tervita Corp. (Canada) †   16   74 
Waste Management, Inc.   3,538   314,847 
    4,783,660 

 

COMMON STOCKS (56.1%)* cont.   Shares   Value 
Communication services (1.9%)     
BT Group PLC (United Kingdom)   33,894   $102,862 
Deutsche Telekom AG (Germany)   6,478   109,997 
Eutelsat Communications SA (France)   846   16,677 
Hikari Tsushin, Inc. (Japan)   100   15,731 
HKT Trust & HKT, Ltd. (Units) (Hong Kong)   13,000   18,717 
Juniper Networks, Inc.   4,491   120,853 
KDDI Corp. (Japan)   3,500   83,405 
Nippon Telegraph & Telephone Corp. (Japan)   1,300   52,931 
NTT DoCoMo, Inc. (Japan)   2,700   60,628 
Swisscom AG (Switzerland)   72   34,407 
Telenor ASA (Norway)   5,534   107,205 
Telephone & Data Systems, Inc.   1,968   64,039 
Telstra Corp., Ltd. (Australia)   26,126   52,443 
Verizon Communications, Inc.   25,819   1,451,544 
    2,291,439 
Communications equipment (1.1%)     
Avaya Holdings Corp. †   573   8,348 
Cisco Systems, Inc.   32,188   1,394,706 
    1,403,054 
Computers (2.3%)     
Amadeus IT Holding SA Class A (Spain)   1,598   111,392 
Apple, Inc.   9,254   1,459,726 
Aspen Technology, Inc. †   1,095   89,987 
CDW Corp. of Delaware   1,477   119,711 
Citrix Systems, Inc.   2,317   237,400 
Dell Technologies, Inc. Class C †   1,618   79,089 
Fortinet, Inc. †   4,364   307,357 
Fujitsu, Ltd. (Japan)   500   31,345 
NetApp, Inc.   5,270   314,461 
Synopsys, Inc. †   1,661   139,923 
    2,890,391 
Conglomerates (0.4%)     
AMETEK, Inc.   1,984   134,317 
Marubeni Corp. (Japan)   15,300   106,470 
Mitsubishi Corp. (Japan)   2,900   79,149 
Mitsui & Co., Ltd. (Japan)   7,300   113,137 
    433,073 
Consumer cyclicals (6.6%)     
ABC-Mart, Inc. (Japan)   400   22,154 
Amazon.com, Inc. †   696   1,045,371 
Aristocrat Leisure, Ltd. (Australia)   1,689   25,795 
Automatic Data Processing, Inc.   3,685   483,177 
Berkeley Group Holdings PLC (The) (United Kingdom)   483   21,418 
Booking Holdings, Inc. †   269   463,331 
Booz Allen Hamilton Holding Corp.   2,421   109,114 
Caesars Entertainment Corp. †   630   4,277 
Capri Holdings, Ltd. †   4,269   161,880 
CK Hutchison Holdings, Ltd. (Hong Kong)   4,500   43,003 
CoStar Group, Inc. †   381   128,527 
Crown, Ltd. (Australia)   4,555   38,049 
Extended Stay America, Inc. (Units)   4,050   62,775 
Fast Retailing Co., Ltd. (Japan)   100   51,154 
Fiat Chrysler Automobiles NV (Italy) †   3,597   52,266 
Galaxy Entertainment Group, Ltd. (Hong Kong)   6,000   37,660 
Genting Bhd (Singapore)   64,300   46,030 
Hermes International (France)   232   128,867 
Hilton Worldwide Holdings, Inc.   3,297   236,725 
Home Depot, Inc. (The)   8,271   1,421,123 

 

6 Putnam VT Global Asset Allocation Fund 

 


COMMON STOCKS (56.1%)* cont.   Shares   Value 
Consumer cyclicals cont.     
Industria de Diseno Textil SA (Inditex) (Spain)   1,159   $29,679 
KAR Auction Services, Inc.   2,074   98,971 
Kering SA (France)   67   31,597 
Las Vegas Sands Corp.   2,315   120,496 
Liberty SiriusXM Group Class A †   1,285   47,288 
Lowe’s Cos., Inc.   8,656   799,468 
Mitsubishi Motors Corp. (Japan)   2,400   13,250 
Moncler SpA (Italy)   531   17,601 
Namco Bandai Holdings, Inc. (Japan)   700   31,232 
Next PLC (United Kingdom)   579   29,453 
Nintendo Co., Ltd. (Japan)   300   79,263 
Omnicom Group, Inc.   4,127   302,261 
Pearson PLC (United Kingdom)   5,490   65,665 
Peugeot SA (France)   6,033   128,880 
ProSiebenSat.1 Media SE (Germany)   2,122   37,806 
Randstad Holding NV (Netherlands)   648   29,765 
Ross Stores, Inc.   5,460   454,272 
RTL Group SA (Belgium)   283   15,142 
ServiceMaster Global Holdings, Inc. †   1,317   48,387 
Sony Corp. (Japan)   3,100   149,286 
Suzuki Motor Corp. (Japan)   400   20,240 
Tapestry, Inc.   820   27,675 
Taylor Wimpey PLC (United Kingdom)   34,490   59,897 
Total System Services, Inc.   1,869   151,931 
Toyota Motor Corp. (Japan)   1,700   98,737 
TUI AG (Germany)   5,570   79,905 
Twenty-First Century Fox, Inc.   6,350   303,403 
Volkswagen AG (Preference) (Germany)   220   35,017 
Volvo AB (Sweden)   10,205   133,507 
Wolters Kluwer NV (Netherlands)   1,462   86,535 
Wyndham Destinations, Inc.   1,923   68,920 
    8,178,225 
Consumer staples (5.5%)     
Ashtead Group PLC (United Kingdom)   4,258   88,844 
Associated British Foods PLC (United Kingdom)   2,381   62,001 
Carlsberg A/S Class B (Denmark)   614   65,258 
Coca-Cola Amatil, Ltd. (Australia)   2,856   16,474 
Coca-Cola Co. (The)   21,809   1,032,656 
Coca-Cola European Partners PLC (United Kingdom)   2,652   121,594 
Coles Group, Ltd. (Australia) †   751   6,210 
Colruyt SA (Belgium)   497   35,442 
Darden Restaurants, Inc.   2,381   237,767 
Hershey Co. (The)   2,154   230,866 
Imperial Brands PLC (United Kingdom)   4,675   141,640 
J Sainsbury PLC (United Kingdom)   10,930   36,918 
Koninklijke Ahold Delhaize NV (Netherlands)   5,611   141,916 
L’Oreal SA (France)   546   125,867 
Marine Harvest ASA (Norway)   1,303   27,532 
Molson Coors Brewing Co. Class B   3,278   184,092 
Mondelez International, Inc. Class A   11,995   480,160 
Nestle SA (Switzerland)   1,413   114,719 
PepsiCo, Inc.   8,353   922,839 
Pigeon Corp. (Japan)   200   8,636 
Pola Orbis Holdings, Inc. (Japan)   800   21,432 
Procter & Gamble Co. (The)   4,253   390,936 
Reckitt Benckiser Group PLC (United Kingdom)   1,088   83,386 
Starbucks Corp.   17,213   1,108,517 

 

COMMON STOCKS (56.1%)* cont.   Shares   Value 
Consumer staples cont.     
Swedish Match AB (Sweden)   1,064   $41,910 
Sysco Corp.   5,999   375,897 
Unilever PLC (United Kingdom)   405   21,209 
Walgreens Boots Alliance, Inc.   9,406   642,712 
Wesfarmers, Ltd. (Australia)   751   17,055 
WH Group, Ltd. (Hong Kong)   15,500   11,819 
    6,796,304 
Electronics (1.6%)     
Agilent Technologies, Inc.   5,073   342,225 
Brother Industries, Ltd. (Japan)   800   11,743 
Hoya Corp. (Japan)   2,200   134,469 
Intel Corp.   11,153   523,410 
NXP Semiconductors NV   6,691   490,316 
Rockwell Automation, Inc.   1,442   216,992 
Texas Instruments, Inc.   2,599   245,606 
    1,964,761 
Energy (2.9%)     
BP PLC (United Kingdom)   11,319   71,552 
Chevron Corp.   11,315   1,230,959 
ConocoPhillips   11,332   706,550 
Equinor ASA (Norway)   5,890   125,171 
Exxon Mobil Corp.   1,310   89,329 
Halcon Resources Corp. †   899   1,528 
JX Holdings, Inc. (Japan)   1,500   7,862 
MWO Holdings, LLC (Units) F   15   507 
Nine Point Energy F   107   1,545 
OMV AG (Austria)   1,051   46,060 
PBF Energy, Inc. Class A   3,555   116,142 
Phillips 66   4,583   394,825 
Royal Dutch Shell PLC Class B (United Kingdom)   3,666   109,341 
TOTAL SA (France)   4,176   220,955 
Valero Energy Corp.   5,457   409,111 
    3,531,437 
Financials (9.9%)     
3i Group PLC (United Kingdom)   6,658   65,633 
ABN AMRO Group NV GDR (Netherlands)   4,712   110,891 
Aegon NV (Netherlands)   1,655   7,735 
Aflac, Inc.   5,419   246,890 
AGNC Investment Corp. R   9,938   174,313 
Allianz SE (Germany)   970   194,647 
Allstate Corp. (The)   1,973   163,029 
American Financial Group, Inc.   600   54,318 
American Homes 4 Rent R   3,427   68,026 
Ameriprise Financial, Inc.   2,200   229,614 
Annaly Capital Management, Inc. R   12,434   122,102 
Apartment Investment & Management Co. Class A R   1,611   70,691 
Apple Hospitality REIT, Inc. R   2,769   39,486 
Athene Holding, Ltd. Class A †   2,097   83,524 
AvalonBay Communities, Inc. R   864   150,379 
Aviva PLC (United Kingdom)   22,428   107,343 
Bank Leumi Le-Israel BM (Israel)   5,263   31,810 
Berkshire Hathaway, Inc. Class B †   358   73,096 
Brixmor Property Group, Inc. R   6,019   88,419 
Broadridge Financial Solutions, Inc.   1,936   186,340 
Brookfield Property REIT, Inc. Class A R   1,709   27,515 
Capital One Financial Corp.   4,113   310,902 
CBRE Group, Inc. Class A †   2,893   115,836 
Cheung Kong Property Holdings, Ltd. (Hong Kong)   17,500   127,256 

 

Putnam VT Global Asset Allocation Fund 7 

 


COMMON STOCKS (56.1%)* cont.   Shares   Value 
Financials cont.     
Citigroup, Inc.   21,015   $1,094,041 
Citizens Financial Group, Inc.   8,429   250,594 
Comerica, Inc.   3,075   211,222 
Daiwa Securities Group, Inc. (Japan)   1,700   8,668 
Deutsche Boerse AG (Germany)   279   33,549 
Discover Financial Services   3,788   223,416 
DNB ASA (Norway)   865   13,821 
Douglas Emmett, Inc. R   1,217   41,536 
Duke Realty Corp. R   3,727   96,529 
E*Trade Financial Corp.   6,828   299,613 
East West Bancorp, Inc.   1,332   57,982 
Equity Lifestyle Properties, Inc. R   569   55,267 
Gaming and Leisure Properties, Inc. R   1,859   60,064 
Goldman Sachs Group, Inc. (The)   1,309   218,668 
Hang Seng Bank, Ltd. (Hong Kong)   4,800   107,210 
Hartford Financial Services Group, Inc. (The)   4,904   217,983 
Healthcare Trust of America, Inc. Class A R   2,924   74,006 
Henderson Land Development Co., Ltd. (Hong Kong)   9,000   44,616 
Highwoods Properties, Inc. R   1,282   49,601 
HSBC Holdings PLC (United Kingdom)   2,429   20,028 
Hudson Pacific Properties, Inc. R   1,436   41,730 
Jones Lang LaSalle, Inc.   531   67,225 
JPMorgan Chase & Co.   16,804   1,640,406 
KBC Groep NV (Belgium)   394   25,587 
Kerry Properties, Ltd. (Hong Kong)   2,500   8,494 
Legal & General Group PLC (United Kingdom)   43,507   128,099 
Liberty Property Trust R   1,416   59,302 
Lincoln National Corp.   3,142   161,216 
Lloyds Banking Group PLC (United Kingdom)   143,183   94,627 
London Stock Exchange Group PLC (United Kingdom)   574   29,718 
Macquarie Group, Ltd. (Australia)   1,726   132,074 
Medical Properties Trust, Inc. R   4,502   72,392 
MetLife, Inc.   12,562   515,796 
Mirvac Group (Australia) R   16,721   26,381 
Mitsubishi UFJ Lease & Finance Co., Ltd. (Japan)   3,900   18,687 
Mizuho Financial Group, Inc. (Japan)   89,400   139,336 
Morgan Stanley   12,336   489,122 
New Residential Investment Corp. R   7,738   109,957 
ORIX Corp. (Japan)   8,600   124,955 
Paramount Group, Inc. R   2,630   33,033 
Partners Group Holding AG (Switzerland)   200   121,274 
Persimmon PLC (United Kingdom)   4,365   107,378 
Popular, Inc. (Puerto Rico)   1,154   54,492 
Principal Financial Group, Inc.   2,047   90,416 
Prudential Financial, Inc.   3,859   314,701 
Reinsurance Group of America, Inc.   508   71,237 
Resona Holdings, Inc. (Japan)   24,600   117,675 
Scentre Group (Australia) R   21,278   58,445 
Schroders PLC (United Kingdom)   1,082   33,692 
Senior Housing Properties Trust R   2,296   26,909 
SL Green Realty Corp. R   1,477   116,801 
Spirit Realty Capital, Inc. R   2,313   81,533 
Stockland (Units) (Australia) R   17,181   42,624 
STORE Capital Corp. R   3,159   89,431 
Sumitomo Mitsui Financial Group, Inc. (Japan)   4,300   141,800 
Sumitomo Mitsui Trust Holdings, Inc. (Japan)   1,100   40,039 

 

COMMON STOCKS (56.1%)* cont.   Shares   Value 
Financials cont.     
Sun Hung Kai Properties, Ltd. (Hong Kong)   3,500   $49,626 
Swedbank AB Class A (Sweden)   5,485   122,381 
Swire Properties, Ltd. (Hong Kong)   2,800   9,784 
Synchrony Financial   9,429   221,204 
Synovus Financial Corp.   2,755   88,132 
TCF Financial Corp.   1,975   38,493 
Unum Group   3,660   107,531 
VICI Properties, Inc. R   5,994   112,567 
Weingarten Realty Investors R   1,319   32,724 
Wintrust Financial Corp.   571   37,966 
    12,275,201 
Health care (7.8%)     
AbbVie, Inc.   3,536   325,984 
Advanz Pharma Corp. (Canada) †   52   977 
Alfresa Holdings Corp. (Japan)   1,800   46,568 
Allergan PLC   1,006   134,462 
Amgen, Inc.   4,236   824,622 
Astellas Pharma, Inc. (Japan)   9,000   114,535 
Baxter International, Inc.   4,626   304,483 
Bayer AG (Germany)   386   26,783 
Biogen, Inc. †   715   215,158 
Bristol-Myers Squibb Co.   3,503   182,086 
Celgene Corp. †   1,669   106,966 
Centene Corp. †   2,178   251,123 
Charles River Laboratories International, Inc. †   438   49,573 
Cigna Corp.   2,400   455,808 
Eli Lilly & Co.   5,750   665,390 
Encompass Health Corp.   952   58,738 
Gilead Sciences, Inc.   4,269   267,026 
GlaxoSmithKline PLC (United Kingdom)   10,825   205,749 
HCA Healthcare, Inc.   3,206   398,987 
Hill-Rom Holdings, Inc.   793   70,220 
Humana, Inc.   546   156,418 
Ipsen SA (France)   71   9,180 
Johnson & Johnson   6,039   779,333 
Koninklijke Philips NV (Netherlands)   830   29,414 
Masimo Corp. †   840   90,191 
McKesson Corp.   2,703   298,600 
Medipal Holdings Corp. (Japan)   1,500   32,448 
Medtronic PLC   8,462   769,704 
Merck & Co., Inc.   8,939   683,029 
Novartis AG (Switzerland)   1,948   166,558 
Novo Nordisk A/S Class B (Denmark)   1,369   62,583 
Pfizer, Inc.   10,170   443,921 
ResMed, Inc.   1,192   135,733 
Roche Holding AG (Switzerland)   1,084   268,436 
Sanofi (France)   1,155   100,124 
Sartorius Stedim Biotech (France)   312   31,225 
Shionogi & Co., Ltd. (Japan)   2,100   119,078 
Shire PLC (United Kingdom)   260   15,145 
Siemens Healthineers AG (Germany) †   640   26,798 
Straumann Holding AG (Switzerland)   50   31,438 
UCB SA (Belgium)   783   63,965 
UnitedHealth Group, Inc.   1,204   299,940 
Vertex Pharmaceuticals, Inc. †   925   153,282 
Waters Corp. †   256   48,294 
Zoetis, Inc.   1,317   112,656 
    9,632,731 

 

8 Putnam VT Global Asset Allocation Fund 

 


COMMON STOCKS (56.1%)* cont.   Shares   Value 
Semiconductor (0.2%)     
KLA-Tencor Corp.   3,014   $269,723 
    269,723 
Software (3.1%)     
Adobe, Inc. †   3,671   830,527 
Black Knight, Inc. †   1,372   61,822 
Cadence Design Systems, Inc. †   3,336   145,049 
Electronic Arts, Inc. †   1,869   147,483 
F5 Networks, Inc. †   1,396   226,194 
Intuit, Inc.   2,697   530,904 
Microsoft Corp.   9,773   992,644 
NTT Data Corp. (Japan)   7,500   81,941 
Oracle Corp.   18,907   853,651 
    3,870,215 
Technology (—%)     
SoftBank Group Corp. (Japan)   700   46,140 
    46,140 
Technology services (3.8%)     
Alphabet, Inc. Class A †   2,281   2,383,554 
Capgemini SE (France)   602   59,870 
Cognizant Technology Solutions Corp. Class A   4,818   305,847 
Dun & Bradstreet Corp. (The)   909   129,751 
Facebook, Inc. Class A †   4,644   608,782 
IBM Corp.   9,386   1,066,907 
Zebra Technologies Corp. Class A †   712   113,372 
    4,668,083 
Transportation (1.2%)     
Aena SME SA (Spain)   612   95,188 
Central Japan Railway Co. (Japan)   700   148,742 
Delta Air Lines, Inc.   9,514   474,749 
Deutsche Lufthansa AG (Germany)   692   15,619 
Deutsche Post AG (Germany)   972   26,628 
International Consolidated Airlines Group SA     
(Spain)   15,666   124,209 
Japan Airlines Co., Ltd. (Japan)   2,300   81,464 
SG Holdings Co., Ltd. (Japan)   1,100   28,849 
United Continental Holdings, Inc. †   4,821   403,662 
Yangzijiang Shipbuilding Holdings, Ltd. (China)   42,000   38,184 
    1,437,294 
Utilities and power (1.9%)     
AES Corp.   9,887   142,966 
AGL Energy, Ltd. (Australia)   408   5,904 
Ameren Corp.   2,555   166,663 
CenterPoint Energy, Inc.   6,928   195,577 
CLP Holdings, Ltd. (Hong Kong)   5,000   56,364 
Endesa SA (Spain)   4,179   96,384 
Enel SpA (Italy)   16,108   93,091 
Eni SpA (Italy)   9,179   144,585 
Evergy, Inc.   1,894   107,522 
Exelon Corp.   9,369   422,542 
Kansai Electric Power Co., Inc. (The) (Japan)   400   6,006 
NRG Energy, Inc.   6,110   241,956 
OGE Energy Corp.   2,696   105,656 
Pinnacle West Capital Corp.   1,750   149,100 
Public Service Enterprise Group, Inc.   5,573   290,075 
RWE AG (Germany)   816   17,731 
Texas Competitive Electric Holdings Co., LLC/TCEH     
Finance, Inc. (Rights)   1,923   1,346 
UGI Corp.   2,847   151,887 
    2,395,355 
 
Total common stocks (cost $66,884,095)     $69,389,181 

 

CORPORATE BONDS     
AND NOTES (16.1%)*   Principal amount   Value 
 
Basic materials (0.9%)     
Allegheny Technologies, Inc. sr. unsec.     
unsub. notes 7.875%, 8/15/23   $10,000   $10,200 
Allegheny Technologies, Inc. sr. unsec.     
unsub. notes 5.95%, 1/15/21   10,000   9,800 
ArcelorMittal SA sr. unsec. unsub. notes 7.00%,     
10/15/39 (France)   10,000   10,536 
Beacon Escrow Corp. 144A sr. unsec. notes     
4.875%, 11/1/25   10,000   8,788 
Beacon Roofing Supply, Inc. company     
guaranty sr. unsec. unsub. notes 6.375%, 10/1/23   10,000   9,900 
Big River Steel, LLC/BRS Finance Corp. 144A     
company guaranty sr. notes 7.25%, 9/1/25   20,000   19,850 
BMC East, LLC 144A company     
guaranty sr. notes 5.50%, 10/1/24   20,000   18,650 
Boise Cascade Co. 144A company     
guaranty sr. unsec. notes 5.625%, 9/1/24   25,000   23,438 
Builders FirstSource, Inc. 144A company     
guaranty sr. unsub. notes 5.625%, 9/1/24   15,000   13,913 
BWAY Holding Co. 144A sr. notes 5.50%, 4/15/24   15,000   14,100 
BWAY Holding Co. 144A sr. unsec. notes 7.25%,     
4/15/25   30,000   26,925 
Celanese US Holdings, LLC company     
guaranty sr. unsec. unsub. notes 4.625%,     
11/15/22 (Germany)   15,000   15,298 
CF Industries, Inc. company guaranty sr. unsec.     
bonds 4.95%, 6/1/43   15,000   11,625 
CF Industries, Inc. 144A company     
guaranty sr. notes 4.50%, 12/1/26   38,000   37,138 
Chemours Co. (The) company guaranty sr. unsec.     
notes 5.375%, 5/15/27   10,000   9,000 
Chemours Co. (The) company guaranty sr. unsec.     
unsub. notes 7.00%, 5/15/25   10,000   10,075 
Chemours Co. (The) company guaranty sr. unsec.     
unsub. notes 6.625%, 5/15/23   5,000   5,050 
Compass Minerals International, Inc. 144A company     
guaranty sr. unsec. notes 4.875%, 7/15/24   25,000   22,500 
Cornerstone Chemical Co. 144A company     
guaranty sr. notes 6.75%, 8/15/24   5,000   4,388 
CPG Merger Sub, LLC 144A company     
guaranty sr. unsec. notes 8.00%, 10/1/21   7,000   6,790 
Dow Chemical Co. (The) 144A sr. unsec.     
notes 4.80%, 11/30/28   5,000   5,087 
Flex Acquisition Co., Inc. 144A sr. unsec.     
notes 6.875%, 1/15/25   10,000   8,900 
Freeport-McMoRan, Inc. company     
guaranty sr. unsec. notes 6.875%, 2/15/23     
(Indonesia)   20,000   20,625 
Freeport-McMoRan, Inc. company     
guaranty sr. unsec. unsub. notes 5.45%, 3/15/43     
(Indonesia)   5,000   3,806 
GCP Applied Technologies, Inc. 144A sr. unsec.     
notes 5.50%, 4/15/26   30,000   29,250 
Glencore Funding, LLC 144A company     
guaranty sr. unsec. unsub. notes 4.625%, 4/29/24   19,000   18,834 
Glencore Funding, LLC 144A company     
guaranty sr. unsec. unsub. notes 4.00%, 4/16/25   43,000   40,480 
HudBay Minerals, Inc. 144A company     
guaranty sr. unsec. notes 7.625%, 1/15/25     
(Canada)   10,000   9,775 
Huntsman International, LLC company     
guaranty sr. unsec. unsub. notes 4.875%, 11/15/20   20,000   20,050 

 

Putnam VT Global Asset Allocation Fund 9 

 


CORPORATE BONDS     
AND NOTES (16.1%)* cont.   Principal amount   Value 
Basic materials cont.     
Ingevity Corp. 144A sr. unsec. notes 4.50%, 2/1/26   $15,000   $13,575 
International Flavors & Fragrances, Inc.     
sr. unsec. notes 4.45%, 9/26/28   27,000   27,398 
International Paper Co. sr. unsec.     
unsub. notes 3.00%, 2/15/27   30,000   27,308 
Joseph T Ryerson & Son, Inc. 144A     
sr. notes 11.00%, 5/15/22   10,000   10,075 
Kraton Polymers, LLC/Kraton Polymers     
Capital Corp. 144A company guaranty sr. unsec.     
notes 7.00%, 4/15/25   10,000   9,200 
Louisiana-Pacific Corp. company     
guaranty sr. unsec. unsub. notes 4.875%, 9/15/24   10,000   9,650 
Mercer International, Inc. company     
guaranty sr. unsec. notes 7.75%, 12/1/22     
(Canada)   4,000   4,120 
Mercer International, Inc. sr. unsec.     
notes 6.50%, 2/1/24 (Canada)   10,000   9,775 
Mercer International, Inc. sr. unsec.     
notes 5.50%, 1/15/26 (Canada)   5,000   4,475 
Methanex Corp. sr. unsec. unsub. notes 3.25%,     
12/15/19 (Canada)   6,000   5,956 
New Gold, Inc. 144A company guaranty sr. unsec.     
unsub. notes 6.25%, 11/15/22 (Canada)   5,000   4,188 
Novelis Corp. 144A company guaranty sr. unsec.     
bonds 5.875%, 9/30/26   25,000   22,125 
Novelis Corp. 144A company guaranty sr. unsec.     
notes 6.25%, 8/15/24   10,000   9,400 
Nutrien, Ltd. sr. unsec. bonds 5.25%, 1/15/45     
(Canada)   20,000   20,047 
Nutrien, Ltd. sr. unsec. bonds 4.125%, 3/15/35     
(Canada)   25,000   22,759 
Packaging Corp. of America sr. unsec.     
unsub. notes 4.50%, 11/1/23   45,000   46,034 
Pisces Midco, Inc. 144A sr. notes 8.00%, 4/15/26   15,000   13,650 
Platform Specialty Products Corp. 144A sr. unsec.     
notes 6.50%, 2/1/22   5,000   5,000 
PQ Corp. 144A company guaranty sr. unsec.     
notes 5.75%, 12/15/25   15,000   13,894 
Sherwin-Williams Co. (The) sr. unsec.     
unsub. bonds 3.45%, 6/1/27   35,000   32,626 
Sherwin-Williams Co. (The) sr. unsec.     
unsub. notes 2.75%, 6/1/22   15,000   14,520 
Smurfit Kappa Treasury Funding DAC company     
guaranty sr. unsec. unsub. notes 7.50%, 11/20/25     
(Ireland)   15,000   17,438 
Steel Dynamics, Inc. company guaranty sr. unsec.     
notes 5.00%, 12/15/26   5,000   4,738 
Steel Dynamics, Inc. company guaranty sr. unsec.     
notes 4.125%, 9/15/25   5,000   4,594 
Steel Dynamics, Inc. company guaranty sr. unsec.     
unsub. notes 5.50%, 10/1/24   20,000   19,800 
Steel Dynamics, Inc. company guaranty sr. unsec.     
unsub. notes 5.25%, 4/15/23   3,000   2,959 
Teck Resources, Ltd. company guaranty sr. unsec.     
unsub. notes 3.75%, 2/1/23 (Canada)   5,000   4,763 
Teck Resources, Ltd. 144A company     
guaranty sr. unsec. notes 8.50%, 6/1/24 (Canada)   5,000   5,413 
TMS International Corp. 144A sr. unsec.     
notes 7.25%, 8/15/25   15,000   14,025 
TopBuild Corp. 144A company guaranty sr. unsec.     
notes 5.625%, 5/1/26   15,000   13,725 

 

CORPORATE BONDS     
AND NOTES (16.1%)* cont.   Principal amount   Value 
 
Basic materials cont.     
Tronox Finance PLC 144A company     
guaranty sr. unsec. notes 5.75%, 10/1/25     
(United Kingdom)   $5,000   $4,050 
U.S. Concrete, Inc. company guaranty sr. unsec.     
unsub. notes 6.375%, 6/1/24   18,000   16,560 
Univar USA, Inc. 144A company guaranty sr. unsec.     
notes 6.75%, 7/15/23   10,000   9,900 
USG Corp. 144A company guaranty sr. unsec.     
bonds 4.875%, 6/1/27   20,000   20,150 
USG Corp. 144A company guaranty sr. unsec.     
notes 5.50%, 3/1/25   10,000   10,075 
Vodafone Group PLC 144A sr. unsec. notes 7.875%,     
7/15/26   10,000   9,000 
Westlake Chemical Corp. company     
guaranty sr. unsec. unsub. bonds 4.375%,     
11/15/47   53,000   44,414 
Westlake Chemical Corp. company     
guaranty sr. unsec. unsub. notes 3.60%, 8/15/26   22,000   20,171 
WestRock MWV, LLC company guaranty sr. unsec.     
unsub. notes 8.20%, 1/15/30   30,000   38,088 
WestRock MWV, LLC company guaranty sr. unsec.     
unsub. notes 7.95%, 2/15/31   10,000   12,770 
Weyerhaeuser Co. sr. unsec. unsub. notes 7.375%,     
3/15/32 R   34,000   41,576 
WR Grace & Co.- Conn. 144A company     
guaranty sr. unsec. notes 5.625%, 10/1/24   10,000   9,950 
Zekelman Industries, Inc. 144A company     
guaranty sr. notes 9.875%, 6/15/23   15,000   15,788 
    1,110,493 
Capital goods (0.7%)     
Allison Transmission, Inc. 144A company     
guaranty sr. unsec. notes 4.75%, 10/1/27   20,000   17,800 
American Axle & Manufacturing, Inc. company     
guaranty sr. unsec. notes 7.75%, 11/15/19   9,000   9,158 
ATS Automation Tooling Systems, Inc. 144A     
sr. unsec. notes 6.50%, 6/15/23 (Canada)   10,000   10,238 
Berry Global, Inc. company guaranty notes 5.50%,     
5/15/22   10,000   9,950 
Berry Global, Inc. company     
guaranty unsub. notes 5.125%, 7/15/23   10,000   9,891 
Berry Global, Inc. 144A notes 4.50%, 2/15/26   5,000   4,575 
Bombardier, Inc. 144A sr. unsec. notes 8.75%,     
12/1/21 (Canada)   5,000   5,138 
Bombardier, Inc. 144A sr. unsec. notes 7.50%,     
12/1/24 (Canada)   25,000   23,563 
Briggs & Stratton Corp. company     
guaranty sr. unsec. notes 6.875%, 12/15/20   45,000   45,731 
Covanta Holding Corp. sr. unsec. notes 6.00%,     
1/1/27   5,000   4,475 
Crown Americas, LLC/Crown Americas Capital Corp.     
VI 144A company guaranty sr. unsec. notes 4.75%,     
2/1/26   5,000   4,713 
Crown Cork & Seal Co., Inc. company     
guaranty sr. unsec. bonds 7.375%, 12/15/26   10,000   10,650 
Gates Global, LLC/Gates Global Co. 144A company     
guaranty sr. unsec. notes 6.00%, 7/15/22   14,000   13,598 
General Dynamics Corp. company     
guaranty sr. unsec. unsub. notes 2.25%, 11/15/22   30,000   28,906 
GFL Environmental, Inc. 144A sr. unsec.     
notes 5.375%, 3/1/23 (Canada)   5,000   4,400 
Great Lakes Dredge & Dock Corp. company     
guaranty sr. unsec. notes 8.00%, 5/15/22   20,000   20,325 

 

10 Putnam VT Global Asset Allocation Fund 

 


CORPORATE BONDS     
AND NOTES (16.1%)* cont.   Principal amount   Value 
Capital goods cont.     
Honeywell International, Inc. sr. unsec.     
bonds 3.812%, 11/21/47   $55,000   $52,211 
Hulk Finance Corp. 144A sr. unsec. notes 7.00%,     
6/1/26 (Canada)   20,000   17,400 
Johnson Controls International PLC sr. unsec.     
bonds 4.95%, 7/2/64   65,000   60,413 
Johnson Controls International PLC sr. unsec.     
unsub. bonds 4.50%, 2/15/47   14,000   12,953 
L3 Technologies, Inc. company guaranty sr. unsec.     
bonds 3.85%, 12/15/26   35,000   33,882 
L3 Technologies, Inc. company guaranty sr. unsec.     
notes 4.40%, 6/15/28   21,000   20,995 
MasTec, Inc. company guaranty sr. unsec.     
unsub. notes 4.875%, 3/15/23   10,000   9,700 
Northrop Grumman Corp. sr. unsec.     
unsub. notes 3.25%, 1/15/28   60,000   55,980 
Oshkosh Corp. company guaranty sr. unsec.     
sub. notes 5.375%, 3/1/25   25,000   24,938 
Oshkosh Corp. sr. unsec. sub. notes 4.60%, 5/15/28   21,000   20,659 
Park-Ohio Industries, Inc. company     
guaranty sr. unsec. notes 6.625%, 4/15/27   10,000   9,500 
Raytheon Co. sr. unsec. notes 4.875%, 10/15/40   20,000   22,339 
Raytheon Co. sr. unsec. unsub. notes 2.50%,     
12/15/22   50,000   48,725 
RBS Global, Inc./Rexnord, LLC 144A sr. unsec.     
notes 4.875%, 12/15/25   20,000   18,150 
Republic Services, Inc. sr. unsec. notes 3.95%,     
5/15/28   50,000   50,032 
Resideo Funding, Inc. 144A company     
guaranty sr. unsec. notes 6.125%, 11/1/26   10,000   9,850 
Stevens Holding Co, Inc. 144A company     
guaranty sr. unsec. notes 6.125%, 10/1/26   20,000   19,700 
Tennant Co. company guaranty sr. unsec.     
unsub. notes 5.625%, 5/1/25   10,000   9,425 
Titan Acquisition, Ltd./Titan Co-Borrower, LLC     
144A sr. unsec. notes 7.75%, 4/15/26 (Canada)   15,000   12,825 
TransDigm, Inc. company guaranty sr. unsec.     
sub. notes 6.50%, 5/15/25   5,000   4,775 
TransDigm, Inc. company guaranty sr. unsec.     
sub. notes 6.375%, 6/15/26   20,000   18,600 
TransDigm, Inc. company guaranty sr. unsec.     
unsub. notes 6.50%, 7/15/24   8,000   7,780 
Trident Merger Sub, Inc. 144A sr. unsec.     
notes 6.625%, 11/1/25   10,000   8,900 
United Technologies Corp. sr. unsec.     
unsub. notes 1.90%, 5/4/20   105,000   103,040 
Vertiv Group Corp. 144A sr. unsec. notes 9.25%,     
10/15/24   10,000   9,200 
Vertiv Intermediate Holding Corp. 144A sr. unsec.     
notes 12.00%, 2/15/22 ‡‡   5,000   4,600 
Wabash National Corp. 144A company     
guaranty sr. unsec. notes 5.50%, 10/1/25   20,000   17,125 
Waste Management, Inc. company     
guaranty sr. unsec. unsub. notes 4.75%, 6/30/20   12,000   12,280 
    919,088 
Communication services (1.4%)     
American Tower Corp. sr. unsec. bonds 3.125%,     
1/15/27 R   11,000   9,958 
American Tower Corp. sr. unsec.     
unsub. bonds 3.55%, 7/15/27 R   100,000   93,811 
AT&T, Inc. sr. unsec. notes 4.10%, 2/15/28   160,000   153,852 
AT&T, Inc. sr. unsec. unsub. notes 4.75%, 5/15/46   77,000   68,368 

 

CORPORATE BONDS     
AND NOTES (16.1%)* cont.   Principal amount   Value 
Communication services cont.     
Cablevision Systems Corp. sr. unsec.     
unsub. notes 8.00%, 4/15/20   $7,000   $7,088 
CCO Holdings, LLC/CCO Holdings Capital Corp. 144A     
company guaranty sr. unsec. bonds 5.50%, 5/1/26   15,000   14,419 
CCO Holdings, LLC/CCO Holdings Capital Corp. 144A     
company guaranty sr. unsec. notes 5.875%, 4/1/24   25,000   24,875 
CCO Holdings, LLC/CCO Holdings Capital Corp. 144A     
sr. unsec. notes 5.75%, 2/15/26   30,000   29,400 
CCO Holdings, LLC/CCO Holdings Capital Corp. 144A     
sr. unsec. unsub. notes 5.125%, 5/1/23   5,000   4,863 
Charter Communications Operating, LLC/Charter     
Communications Operating Capital Corp. company     
guaranty sr. sub. bonds 6.484%, 10/23/45   5,000   5,140 
Charter Communications Operating, LLC/Charter     
Communications Operating Capital Corp. company     
guaranty sr. sub. notes 4.908%, 7/23/25   4,000   3,977 
Charter Communications Operating, LLC/Charter     
Communications Operating Capital Corp. company     
guaranty sr. sub. bonds 5.375%, 5/1/47   31,000   28,091 
Comcast Corp. company guaranty sr. unsec.     
unsub. bonds 3.969%, 11/1/47   92,000   82,234 
Comcast Corp. company guaranty sr. unsec.     
unsub. notes 6.50%, 11/15/35   17,000   20,127 
CommScope Technologies Finance, LLC 144A     
sr. unsec. notes 6.00%, 6/15/25   25,000   22,750 
CommScope Technologies, LLC 144A company     
guaranty sr. unsec. unsub. notes 5.00%, 3/15/27   10,000   8,100 
Cox Communications, Inc. 144A sr. unsec.     
bonds 3.50%, 8/15/27   25,000   23,049 
Crown Castle International Corp. sr. unsec.     
bonds 3.80%, 2/15/28 R   25,000   23,657 
Crown Castle International Corp. sr. unsec.     
bonds 3.65%, 9/1/27 R   34,000   31,519 
Crown Castle International Corp. sr. unsec.     
notes 4.875%, 4/15/22 R   7,000   7,203 
Crown Castle International Corp. sr. unsec.     
notes 3.15%, 7/15/23 R   25,000   24,032 
Crown Castle International Corp. sr. unsec.     
unsub. bonds 3.70%, 6/15/26 R   35,000   33,113 
CSC Holdings, LLC sr. unsec. unsub. bonds 5.25%,     
6/1/24   63,000   57,724 
CSC Holdings, LLC sr. unsec. unsub. notes 6.75%,     
11/15/21   43,000   44,290 
Deutsche Telekom International Finance BV company     
guaranty sr. unsec. unsub. bonds 8.75%, 6/15/30     
(Netherlands)   73,000   95,212 
DISH DBS Corp. company guaranty sr. unsec.     
unsub. notes 5.875%, 11/15/24   35,000   28,175 
Equinix, Inc. sr. unsec. notes 5.375%, 5/15/27 R   20,000   19,550 
Equinix, Inc. sr. unsec. unsub. notes 5.875%,     
1/15/26 R   5,000   5,038 
Frontier Communications Corp. sr. unsec.     
notes 11.00%, 9/15/25   10,000   6,225 
Frontier Communications Corp. sr. unsec.     
notes 10.50%, 9/15/22   15,000   10,425 
Frontier Communications Corp. 144A company     
guaranty notes 8.50%, 4/1/26   15,000   13,125 
Intelsat Connect Finance SA 144A company     
guaranty sr. unsec. notes 9.50%, 2/15/23     
(Luxembourg)   25,000   21,500 
Intelsat Jackson Holdings SA 144A sr. unsec.     
notes 9.75%, 7/15/25 (Bermuda)   25,000   25,063 

 

Putnam VT Global Asset Allocation Fund 11 

 


CORPORATE BONDS     
AND NOTES (16.1%)* cont.   Principal amount   Value 
Communication services cont.     
Koninklijke KPN NV sr. unsec.     
unsub. bonds 8.375%, 10/1/30 (Netherlands)   $30,000   $38,835 
NBCUniversal Media, LLC company     
guaranty sr. unsec. unsub. notes 5.15%, 4/30/20   100,000   102,662 
Quebecor Media, Inc. sr. unsec.     
unsub. notes 5.75%, 1/15/23 (Canada)   3,000   3,015 
Rogers Communications, Inc. company     
guaranty sr. unsec. unsub. notes 4.50%, 3/15/43     
(Canada)   85,000   83,876 
Sprint Capital Corp. company guaranty sr. unsec.     
unsub. notes 6.875%, 11/15/28   45,000   42,525 
Sprint Communications, Inc. sr. unsec.     
notes 7.00%, 8/15/20   5,000   5,113 
Sprint Corp. company guaranty sr. unsec.     
sub. notes 7.875%, 9/15/23   48,000   49,260 
Sprint Corp. company guaranty sr. unsec.     
sub. notes 7.25%, 9/15/21   17,000   17,400 
T-Mobile USA, Inc. company guaranty sr. unsec.     
notes 6.375%, 3/1/25   10,000   10,100 
T-Mobile USA, Inc. company guaranty sr. unsec.     
notes 6.00%, 3/1/23   5,000   5,024 
T-Mobile USA, Inc. company guaranty sr. unsec.     
notes 5.375%, 4/15/27   25,000   24,125 
T-Mobile USA, Inc. company guaranty sr. unsec.     
notes 4.00%, 4/15/22   5,000   4,875 
T-Mobile USA, Inc. company guaranty sr. unsec.     
unsub. bonds 4.75%, 2/1/28   15,000   13,575 
T-Mobile USA, Inc. company guaranty sr. unsec.     
unsub. notes 4.50%, 2/1/26   5,000   4,588 
TCI Communications, Inc. sr. unsec.     
unsub. notes 7.125%, 2/15/28   65,000   79,566 
Verizon Communications, Inc. sr. unsec.     
unsub. notes 4.40%, 11/1/34   65,000   62,646 
Verizon Communications, Inc. sr. unsec.     
unsub. notes 4.329%, 9/21/28   90,000   90,370 
Videotron, Ltd. company guaranty sr. unsec.     
unsub. notes 5.00%, 7/15/22 (Canada)   20,000   20,000 
Videotron, Ltd./Videotron Ltee. 144A sr. unsec.     
notes 5.125%, 4/15/27 (Canada)   25,000   23,625 
Vodafone Group PLC sr. unsec.     
unsub. notes 4.375%, 5/30/28 (United Kingdom)   17,000   16,491 
    1,743,624 
Consumer cyclicals (2.1%)     
21st Century Fox America, Inc. company     
guaranty sr. unsec. unsub. notes 7.75%, 12/1/45   150,000   220,230 
Alimentation Couche-Tard, Inc. 144A company     
guaranty sr. unsec. notes 3.55%, 7/26/27     
(Canada)   20,000   18,633 
Amazon.com, Inc. sr. unsec. notes 3.15%, 8/22/27   90,000   86,893 
Amazon.com, Inc. sr. unsec. unsub. notes 3.30%,     
12/5/21   75,000   75,918 
AMC Entertainment Holdings, Inc. company     
guaranty sr. unsec. notes 6.125%, 5/15/27   15,000   12,825 
AMC Entertainment Holdings, Inc. company     
guaranty sr. unsec. sub. notes 5.875%, 11/15/26   10,000   8,575 
AMC Entertainment Holdings, Inc. company     
guaranty sr. unsec. sub. notes 5.75%, 6/15/25   10,000   8,800 
American Builders & Contractors Supply Co., Inc.     
144A company guaranty sr. unsec. notes 5.875%,     
5/15/26   5,000   4,738 
American Builders & Contractors Supply Co., Inc.     
144A sr. unsec. notes 5.75%, 12/15/23   10,000   9,900 

 

CORPORATE BONDS     
AND NOTES (16.1%)* cont.   Principal amount   Value 
Consumer cyclicals cont.     
Autonation, Inc. company guaranty sr. unsec.     
unsub. notes 5.50%, 2/1/20   $64,000   $65,334 
BMW US Capital, LLC 144A company     
guaranty sr. unsec. notes 3.95%, 8/14/28   35,000   34,126 
BMW US Capital, LLC 144A company     
guaranty sr. unsec. notes 3.40%, 8/13/21   10,000   9,959 
BMW US Capital, LLC 144A company     
guaranty sr. unsec. notes 2.80%, 4/11/26   16,000   14,667 
BMW US Capital, LLC 144A company     
guaranty sr. unsec. notes 2.00%, 4/11/21   40,000   38,796 
Boyd Gaming Corp. company guaranty sr. unsec.     
notes 6.00%, 8/15/26   5,000   4,675 
Boyd Gaming Corp. company guaranty sr. unsec.     
sub. notes 6.875%, 5/15/23   10,000   10,100 
Boyd Gaming Corp. company guaranty sr. unsec.     
unsub. notes 6.375%, 4/1/26   10,000   9,675 
Brookfield Residential     
Properties, Inc./Brookfield Residential US Corp.     
144A company guaranty sr. unsec. notes 6.125%,     
7/1/22 (Canada)   5,000   4,738 
Carriage Services, Inc. 144A sr. unsec.     
notes 6.625%, 6/1/26   10,000   9,800 
CBS Corp. company guaranty sr. unsec.     
unsub. bonds 2.90%, 1/15/27   22,000   19,507 
CBS Corp. company guaranty sr. unsec.     
unsub. notes 4.60%, 1/15/45   24,000   21,319 
CBS Corp. company guaranty sr. unsec.     
unsub. notes 4.00%, 1/15/26   12,000   11,626 
CBS Radio, Inc. 144A company guaranty sr. unsec.     
notes 7.25%, 11/1/24   30,000   27,900 
Cinemark USA, Inc. company guaranty sr. unsec.     
sub. notes 4.875%, 6/1/23   19,000   18,240 
Clear Channel Worldwide Holdings, Inc. company     
guaranty sr. unsec. unsub. notes 6.50%, 11/15/22   29,000   29,000 
Constellation Merger Sub, Inc. 144A sr. unsec.     
notes 8.50%, 9/15/25   30,000   26,925 
CRC Escrow Issuer, LLC/CRC Finco, Inc. 144A     
company guaranty sr. unsec. notes 5.25%,     
10/15/25   20,000   17,200 
Diamond Resorts International, Inc. 144A     
sr. notes 7.75%, 9/1/23   10,000   9,600 
Dollar General Corp. sr. unsec. sub. notes 3.25%,     
4/15/23   65,000   63,510 
Ecolab, Inc. sr. unsec. notes 4.35%, 12/8/21   40,000   41,096 
Ecolab, Inc. sr. unsec. unsub. notes 3.25%,     
12/1/27   70,000   67,567 
Eldorado Resorts, Inc. company     
guaranty sr. unsec. unsub. notes 7.00%, 8/1/23   5,000   5,138 
Ford Motor Co. sr. unsec. unsub. notes 4.346%,     
12/8/26   59,000   52,558 
Gartner, Inc. 144A company guaranty sr. unsec.     
notes 5.125%, 4/1/25   10,000   9,706 
General Motors Financial Co., Inc. company     
guaranty sr. unsec. notes 4.00%, 10/6/26   76,000   68,234 
General Motors Financial Co., Inc. company     
guaranty sr. unsec. unsub. notes 4.30%, 7/13/25   22,000   20,848 
General Motors Financial Co., Inc. company     
guaranty sr. unsec. unsub. notes 4.00%, 1/15/25   10,000   9,354 
Gray Escrow, Inc. 144A sr. unsec. notes 7.00%,     
5/15/27   20,000   19,463 
Gray Television, Inc. 144A company     
guaranty sr. unsec. notes 5.875%, 7/15/26   10,000   9,323 

 

12 Putnam VT Global Asset Allocation Fund 

 


CORPORATE BONDS     
AND NOTES (16.1%)* cont.   Principal amount   Value 
Consumer cyclicals cont.     
Hanesbrands, Inc. 144A company     
guaranty sr. unsec. unsub. notes 4.625%, 5/15/24   $10,000   $9,375 
Hilton Worldwide Finance, LLC/Hilton Worldwide     
Finance Corp. company guaranty sr. unsec.     
notes 4.875%, 4/1/27   75,000   70,313 
Howard Hughes Corp. (The) 144A sr. unsec.     
notes 5.375%, 3/15/25   25,000   23,500 
Hyatt Hotels Corp. sr. unsec. unsub. notes 4.85%,     
3/15/26   55,000   56,319 
iHeartCommunications, Inc. company     
guaranty sr. notes 9.00%,     
12/15/19 (In default) †   20,000   13,400 
IHS Markit, Ltd. sr. unsec. sub. bonds 4.75%,     
8/1/28 (United Kingdom)   5,000   4,881 
IHS Markit, Ltd. 144A company     
guaranty notes 4.75%, 2/15/25 (United Kingdom)   50,000   49,376 
IHS Markit, Ltd. 144A company guaranty sr. unsec.     
notes 4.00%, 3/1/26 (United Kingdom)   5,000   4,688 
Interpublic Group of Cos., Inc. (The) sr. unsec.     
sub. bonds 4.65%, 10/1/28   80,000   78,956 
Iron Mountain, Inc. 144A company     
guaranty sr. unsec. bonds 5.25%, 3/15/28 R   5,000   4,413 
Iron Mountain, Inc. 144A company     
guaranty sr. unsec. notes 4.875%, 9/15/27 R   20,000   17,400 
Jack Ohio Finance, LLC/Jack Ohio Finance 1 Corp.     
144A company guaranty notes 10.25%, 11/15/22   25,000   26,500 
Jack Ohio Finance, LLC/Jack Ohio Finance 1 Corp.     
144A company guaranty sr. notes 6.75%, 11/15/21   20,000   20,200 
Jacobs Entertainment, Inc. 144A notes 7.875%,     
2/1/24   5,000   5,150 
Jeld-Wen, Inc. 144A company guaranty sr. unsec.     
notes 4.875%, 12/15/27   10,000   8,450 
Jeld-Wen, Inc. 144A company guaranty sr. unsec.     
notes 4.625%, 12/15/25   10,000   8,750 
Lear Corp. sr. unsec. unsub. bonds 3.80%, 9/15/27   51,000   46,587 
Lennar Corp. company guaranty sr. unsec.     
sub. notes 5.875%, 11/15/24   5,000   5,000 
Lions Gate Capital Holdings, LLC 144A company     
guaranty sr. unsec. notes 5.875%, 11/1/24   15,000   14,813 
Live Nation Entertainment, Inc. 144A company     
guaranty sr. unsec. notes 4.875%, 11/1/24   5,000   4,750 
Live Nation Entertainment, Inc. 144A company     
guaranty sr. unsec. sub. notes 5.625%, 3/15/26   15,000   14,663 
Mattamy Group Corp. 144A sr. unsec. notes 6.875%,     
12/15/23 (Canada)   10,000   9,338 
Mattamy Group Corp. 144A sr. unsec. notes 6.50%,     
10/1/25 (Canada)   5,000   4,544 
Meredith Corp. 144A sr. unsec. notes 6.875%,     
2/1/26   20,000   19,550 
MGM Resorts International company     
guaranty sr. unsec. notes 6.75%, 10/1/20   35,000   35,963 
MGM Resorts International company     
guaranty sr. unsec. unsub. notes 8.625%, 2/1/19   10,000   10,013 
MGM Resorts International company     
guaranty sr. unsec. unsub. notes 6.625%,     
12/15/21   15,000   15,356 
Navistar International Corp. 144A sr. unsec.     
notes 6.625%, 11/1/25   25,000   24,125 
Neiman Marcus Group, LLC (The) company     
guaranty sr. notes 7.125%, 6/1/28   5,000   3,450 

 

CORPORATE BONDS     
AND NOTES (16.1%)* cont.   Principal amount   Value 
 
Consumer cyclicals cont.     
Neiman Marcus Group, Ltd. 144A company     
guaranty sr. unsec. sub. notes 8.75%,     
10/15/21 ‡‡   $10,972   $4,608 
Neiman Marcus Group, Ltd. 144A company     
guaranty sr. unsec. sub. notes 8.00%, 10/15/21   10,000   4,125 
Nexstar Broadcasting, Inc. 144A company     
guaranty sr. unsec. notes 5.625%, 8/1/24   30,000   28,050 
Nielsen Co. Luxembourg SARL (The) 144A company     
guaranty sr. unsec. notes 5.00%, 2/1/25     
(Luxembourg)   5,000   4,675 
Nielsen Finance, LLC/Nielsen Finance Co. 144A     
company guaranty sr. unsec. sub. notes 5.00%,     
4/15/22   20,000   19,100 
Omnicom Group, Inc. company guaranty sr. unsec.     
unsub. notes 3.60%, 4/15/26   76,000   72,737 
Outfront Media Capital, LLC/Outfront Media     
Capital Corp. company guaranty sr. unsec.     
sub. notes 5.875%, 3/15/25   15,000   14,738 
Penn National Gaming, Inc. 144A sr. unsec.     
notes 5.625%, 1/15/27   10,000   8,950 
Penske Automotive Group, Inc. company     
guaranty sr. unsec. sub. notes 5.75%, 10/1/22   14,000   13,965 
Penske Automotive Group, Inc. company     
guaranty sr. unsec. sub. notes 5.50%, 5/15/26   15,000   13,950 
Penske Automotive Group, Inc. company     
guaranty sr. unsec. sub. notes 5.375%, 12/1/24   10,000   9,363 
PetSmart, Inc. 144A sr. unsec. notes 7.125%,     
3/15/23   5,000   2,913 
PulteGroup, Inc. company guaranty sr. unsec.     
unsub. notes 7.875%, 6/15/32   20,000   20,700 
PulteGroup, Inc. company guaranty sr. unsec.     
unsub. notes 5.50%, 3/1/26   25,000   24,063 
Refinitiv US Holdings, Inc. 144A company     
guaranty sr. notes 6.25%, 5/15/26   10,000   9,650 
Rivers Pittsburgh Borrower LP/Rivers Pittsburgh     
Finance Corp. 144A sr. notes 6.125%, 8/15/21   20,000   19,400 
S&P Global, Inc. company guaranty sr. unsec.     
unsub. notes 2.95%, 1/22/27   22,000   20,695 
Sabre GLBL, Inc. 144A company     
guaranty sr. notes 5.375%, 4/15/23   15,000   14,925 
Scientific Games International, Inc. company     
guaranty sr. unsec. notes 10.00%, 12/1/22   50,000   50,750 
Sinclair Television Group, Inc. 144A company     
guaranty sr. unsec. sub. notes 5.625%, 8/1/24   20,000   18,750 
Sirius XM Radio, Inc. 144A company     
guaranty sr. unsec. sub. notes 6.00%, 7/15/24   10,000   10,025 
Sirius XM Radio, Inc. 144A sr. unsec.     
bonds 5.00%, 8/1/27   70,000   63,963 
Six Flags Entertainment Corp. 144A company     
guaranty sr. unsec. bonds 5.50%, 4/15/27   20,000   18,850 
Six Flags Entertainment Corp. 144A company     
guaranty sr. unsec. unsub. notes 4.875%, 7/31/24   25,000   23,563 
Spectrum Brands, Inc. company guaranty sr. unsec.     
notes 5.75%, 7/15/25   10,000   9,497 
Spectrum Brands, Inc. company guaranty sr. unsec.     
unsub. notes 6.125%, 12/15/24   10,000   9,625 
Standard Industries, Inc. 144A sr. unsec.     
notes 5.375%, 11/15/24   25,000   23,469 
Standard Industries, Inc. 144A sr. unsec.     
notes 5.00%, 2/15/27   35,000   30,625 

 

Putnam VT Global Asset Allocation Fund 13 

 


CORPORATE BONDS     
AND NOTES (16.1%)* cont.   Principal amount   Value 
Consumer cyclicals cont.     
SugarHouse HSP Gaming Prop. Mezz LP/SugarHouse     
HSP Gaming Finance Corp. 144A company     
guaranty sr. unsub. notes 5.875%, 5/15/25   $10,000   $9,350 
Townsquare Media, Inc. 144A company     
guaranty sr. unsec. notes 6.50%, 4/1/23   5,000   4,600 
TRI Pointe Group, Inc./TRI Pointe Homes, Inc.     
company guaranty sr. unsec. unsub. notes 5.875%,     
6/15/24   10,000   8,925 
Tribune Media Co. company guaranty sr. unsec.     
notes 5.875%, 7/15/22   10,000   10,050 
Univision Communications, Inc. 144A company     
guaranty sr. sub. notes 5.125%, 2/15/25   15,000   13,163 
Viacom, Inc. sr. unsec. unsub. notes 4.50%, 3/1/21   70,000   71,027 
Walt Disney Co. (The) sr. unsec. notes 2.75%,     
8/16/21   30,000   29,704 
Warner Media, LLC company guaranty sr. unsec.     
unsub. bonds 2.95%, 7/15/26   41,000   36,655 
Weekley Homes, LLC/Weekley Finance Corp.     
sr. unsec. notes 6.00%, 2/1/23   10,000   9,350 
Werner FinCo LP/Werner FinCo, Inc. 144A company     
guaranty sr. unsec. notes 8.75%, 7/15/25   20,000   17,850 
WMG Acquisition Corp. 144A company     
guaranty sr. notes 5.00%, 8/1/23   10,000   9,725 
WMG Acquisition Corp. 144A company     
guaranty sr. unsec. notes 5.50%, 4/15/26   5,000   4,775 
Wolverine World Wide, Inc. 144A company     
guaranty sr. unsec. bonds 5.00%, 9/1/26   10,000   9,250 
Wyndham Hotels & Resorts, Inc. 144A company     
guaranty sr. unsec. notes 5.375%, 4/15/26   10,000   9,600 
Wynn Las Vegas, LLC/Wynn Las Vegas Capital Corp.     
144A company guaranty sr. unsec.     
sub. notes 5.25%, 5/15/27   25,000   22,000 
    2,638,067 
Consumer staples (0.7%)     
1011778 BC ULC/New Red Finance, Inc. 144A company     
guaranty notes 5.00%, 10/15/25 (Canada)   15,000   13,650 
1011778 BC ULC/New Red Finance, Inc. 144A company     
guaranty sr. notes 4.625%, 1/15/22 (Canada)   5,000   4,825 
1011778 BC ULC/New Red Finance, Inc. 144A company     
guaranty sr. sub. notes 4.25%, 5/15/24 (Canada)   15,000   13,800 
Altria Group, Inc. company guaranty sr. unsec.     
notes 9.25%, 8/6/19   2,000   2,067 
Anheuser-Busch Cos., LLC/Anheuser-Busch InBev     
Worldwide, Inc. 144A company guaranty sr. unsec.     
unsub. notes 3.65%, 2/1/26   35,000   33,094 
Anheuser-Busch InBev Worldwide, Inc. company     
guaranty sr. unsec. unsub. notes 2.50%, 7/15/22   60,000   57,287 
Ascend Learning, LLC 144A sr. unsec.     
notes 6.875%, 8/1/25   15,000   14,363 
Brand Energy & Infrastructure Services, Inc. 144A     
sr. unsec. notes 8.50%, 7/15/25   20,000   17,050 
CEC Entertainment, Inc. company     
guaranty sr. unsec. sub. notes 8.00%, 2/15/22   20,000   17,500 
CVS Pass-Through Trust sr. notes 6.036%, 12/10/28   3,063   3,269 
CVS Pass-Through Trust 144A sr. mtge.     
notes 4.704%, 1/10/36   42,824   42,214 
Dean Foods Co. 144A company guaranty sr. unsec.     
notes 6.50%, 3/15/23   20,000   16,100 
Diageo Investment Corp. company     
guaranty sr. unsec. notes 8.00%, 9/15/22   40,000   46,254 
ERAC USA Finance, LLC 144A company     
guaranty sr. unsec. notes 7.00%, 10/15/37   50,000   62,164 

 

CORPORATE BONDS     
AND NOTES (16.1%)* cont.   Principal amount   Value 
Consumer staples cont.     
ERAC USA Finance, LLC 144A company     
guaranty sr. unsec. notes 5.625%, 3/15/42   $60,000   $65,597 
Fresh Market, Inc. (The) 144A company     
guaranty sr. notes 9.75%, 5/1/23   10,000   7,200 
Golden Nugget, Inc. 144A company     
guaranty sr. unsec. sub. notes 8.75%, 10/1/25   15,000   14,400 
Golden Nugget, Inc. 144A sr. unsec. notes 6.75%,     
10/15/24   15,000   14,138 
Itron, Inc. 144A company guaranty sr. unsec.     
notes 5.00%, 1/15/26   20,000   18,300 
KFC Holding Co./Pizza Hut Holdings, LLC/Taco Bell     
of America, LLC 144A company guaranty sr. unsec.     
notes 5.25%, 6/1/26   15,000   14,513 
KFC Holding Co./Pizza Hut Holdings, LLC/Taco Bell     
of America, LLC 144A company guaranty sr. unsec.     
notes 5.00%, 6/1/24   15,000   14,475 
KFC Holding Co./Pizza Hut Holdings, LLC/Taco Bell     
of America, LLC 144A company guaranty sr. unsec.     
notes 4.75%, 6/1/27   10,000   9,300 
Kraft Heinz Co. (The) company guaranty sr. unsec.     
bonds 4.375%, 6/1/46   70,000   57,668 
Kraft Heinz Co. (The) company guaranty sr. unsec.     
FRN (BBA LIBOR USD 3 Month + 0.82%), 3.438%,     
8/10/22   10,000   9,756 
Lamb Weston Holdings, Inc. 144A company     
guaranty sr. unsec. unsub. notes 4.875%, 11/1/26   37,000   35,520 
Lamb Weston Holdings, Inc. 144A company     
guaranty sr. unsec. unsub. notes 4.625%, 11/1/24   5,000   4,863 
Maple Escrow Subsidiary, Inc. 144A company     
guaranty sr. unsec. notes 4.597%, 5/25/28   76,000   75,060 
Match Group, Inc. 144A sr. unsec. bonds 5.00%,     
12/15/27   15,000   13,763 
Netflix, Inc. sr. unsec. notes 4.875%, 4/15/28   10,000   9,125 
Netflix, Inc. 144A sr. unsec. bonds 6.375%,     
5/15/29   5,000   4,931 
Netflix, Inc. 144A sr. unsec.     
unsub. bonds 5.875%, 11/15/28   5,000   4,859 
Newell Brands, Inc. sr. unsec.     
unsub. notes 4.20%, 4/1/26   36,000   35,183 
Rite Aid Corp. 144A company guaranty sr. unsec.     
unsub. notes 6.125%, 4/1/23   15,000   11,850 
Walgreens Boots Alliance, Inc. sr. unsec.     
unsub. notes 3.30%, 11/18/21   60,000   59,649 
    823,787 
Energy (1.9%)     
Alta Mesa Holdings LP/Alta Mesa Finance     
Services Corp. company guaranty sr. unsec.     
notes 7.875%, 12/15/24   35,000   21,700 
Anadarko Petroleum Corp. sr. unsec.     
unsub. bonds 6.95%, 6/15/19   30,000   30,418 
Antero Resources Corp. company     
guaranty sr. unsec. notes 5.625%, 6/1/23   5,000   4,750 
Antero Resources Corp. company     
guaranty sr. unsec. sub. notes 5.375%, 11/1/21   13,000   12,545 
Antero Resources Corp. company     
guaranty sr. unsec. sub. notes 5.125%, 12/1/22   8,000   7,520 
Apache Corp. sr. unsec. unsub. notes 3.25%,     
4/15/22   35,000   34,280 
Apergy Corp. company guaranty sr. unsec.     
notes 6.375%, 5/1/26   15,000   14,550 

 

14 Putnam VT Global Asset Allocation Fund 

 


CORPORATE BONDS     
AND NOTES (16.1%)* cont.   Principal amount   Value 
Energy cont.     
Ascent Resources Utica Holdings, LLC/ARU     
Finance Corp. 144A sr. unsec. notes 10.00%,     
4/1/22   $6,000   $6,137 
Ascent Resources Utica Holdings, LLC/ARU     
Finance Corp. 144A sr. unsec. notes 7.00%,     
11/1/26   5,000   4,525 
Baytex Energy Corp. 144A company     
guaranty sr. unsec. sub. notes 5.625%, 6/1/24     
(Canada)   5,000   4,325 
BP Capital Markets America, Inc. company     
guaranty sr. unsec. notes 3.119%, 5/4/26   70,000   65,823 
BP Capital Markets PLC company     
guaranty sr. unsec. unsub. notes 3.279%, 9/19/27     
(United Kingdom)   35,000   33,313 
BP Capital Markets PLC company     
guaranty sr. unsec. unsub. notes 2.161%, 9/19/19     
(United Kingdom)   20,000   19,822 
California Resources Corp. company     
guaranty sr. unsec. sub. notes 5.00%, 1/15/20   10,000   8,800 
California Resources Corp. 144A company     
guaranty notes 8.00%, 12/15/22   11,000   7,453 
Cheniere Corpus Christi Holdings, LLC company     
guaranty sr. notes 5.875%, 3/31/25   25,000   24,875 
Cheniere Corpus Christi Holdings, LLC company     
guaranty sr. notes 5.125%, 6/30/27   40,000   37,762 
Chesapeake Energy Corp. company     
guaranty sr. unsec. notes 8.00%, 6/15/27   5,000   4,200 
Chesapeake Energy Corp. company     
guaranty sr. unsec. notes 8.00%, 1/15/25   50,000   44,125 
Chevron Corp. sr. unsec. unsub. notes 1.561%,     
5/16/19   54,000   53,708 
Comstock Escrow Corp. 144A sr. unsec.     
notes 9.75%, 8/15/26   15,000   12,675 
Concho Resources, Inc. company     
guaranty sr. unsec. notes 3.75%, 10/1/27   44,000   41,420 
Continental Resources, Inc. company     
guaranty sr. unsec. bonds 4.90%, 6/1/44   10,000   8,851 
Continental Resources, Inc. company     
guaranty sr. unsec. notes 3.80%, 6/1/24   10,000   9,467 
Covey Park Energy, LLC/Covey Park Finance Corp.     
144A company guaranty sr. unsec. notes 7.50%,     
5/15/25   20,000   17,200 
CrownRock LP/CrownRock Finance, Inc. 144A     
sr. unsec. notes 5.625%, 10/15/25   15,000   13,500 
DCP Midstream Operating LP company     
guaranty sr. unsec. unsub. notes 5.375%, 7/15/25   5,000   4,888 
DCP Midstream Operating LP 144A company     
guaranty sr. unsec. unsub. bonds 6.75%, 9/15/37   5,000   4,925 
Denbury Resources, Inc. company     
guaranty sr. unsec. sub. notes 6.375%, 8/15/21   10,000   7,275 
Denbury Resources, Inc. 144A company     
guaranty notes 9.00%, 5/15/21   12,000   11,160 
Denbury Resources, Inc. 144A notes 7.50%, 2/15/24   10,000   8,050 
Diamondback Energy, Inc. company     
guaranty sr. unsec. unsub. notes 5.375%, 5/31/25   20,000   19,500 
Diamondback Energy, Inc. company     
guaranty sr. unsec. unsub. notes 4.75%, 11/1/24   5,000   4,825 
Endeavor Energy Resources LP/EER Finance, Inc.     
144A sr. unsec. bonds 5.75%, 1/30/28   20,000   20,400 
Endeavor Energy Resources LP/EER Finance, Inc.     
144A sr. unsec. notes 5.50%, 1/30/26   5,000   5,088 

 

CORPORATE BONDS     
AND NOTES (16.1%)* cont.   Principal amount   Value 
Energy cont.     
Energy Transfer Partners LP jr. unsec. sub. FRB     
Ser. B, 6.625%, perpetual maturity   $96,000   $79,200 
Energy Transfer Partners LP sr. unsec.     
unsub. bonds 6.125%, 12/15/45   8,000   7,824 
Energy Transfer Partners LP sr. unsec.     
unsub. notes 6.50%, 2/1/42   13,000   13,068 
Energy Transfer Partners LP sr. unsec.     
unsub. notes 5.20%, 2/1/22   25,000   25,575 
Ensco PLC sr. unsec. notes 7.75%, 2/1/26     
(United Kingdom)   10,000   7,400 
EOG Resources, Inc. sr. unsec.     
unsub. notes 2.625%, 3/15/23   50,000   48,035 
EP Energy, LLC/Everest Acquisition Finance, Inc.     
company guaranty sr. unsec. sub. notes 9.375%,     
5/1/20   5,000   3,750 
EP Energy, LLC/Everest Acquisition Finance, Inc.     
144A company guaranty notes 9.375%, 5/1/24   12,000   5,340 
EP Energy, LLC/Everest Acquisition Finance, Inc.     
144A company guaranty notes 8.00%, 2/15/25   10,000   4,125 
EP Energy, LLC/Everest Acquisition Finance, Inc.     
144A company guaranty sr. notes 8.00%, 11/29/24   10,000   7,450 
EP Energy, LLC/Everest Acquisition Finance, Inc.     
144A company guaranty sr. notes 7.75%, 5/15/26   10,000   8,850 
EQT Corp. sr. unsec. unsub. notes 3.90%, 10/1/27   21,000   18,104 
Equinor ASA company guaranty sr. unsec.     
notes 5.10%, 8/17/40 (Norway)   40,000   44,031 
Exxon Mobil Corp. sr. unsec. unsub. notes 2.222%,     
3/1/21   115,000   113,344 
FTS International, Inc. company     
guaranty sr. notes 6.25%, 5/1/22   5,000   4,425 
Hess Corp. sr. unsec. unsub. notes 7.30%, 8/15/31   30,000   32,461 
Hess Infrastructure Partners LP/Hess     
Infrastructure Partners Finance Corp. 144A     
sr. unsec. notes 5.625%, 2/15/26   20,000   19,350 
Holly Energy Partners LP/Holly Energy     
Finance Corp. 144A company guaranty sr. unsec.     
notes 6.00%, 8/1/24   25,000   24,250 
Indigo Natural Resources, LLC 144A sr. unsec.     
notes 6.875%, 2/15/26   15,000   12,900 
Jagged Peak Energy, LLC 144A company     
guaranty sr. unsec. notes 5.875%, 5/1/26   15,000   13,950 
Marathon Petroleum Corp. sr. unsec.     
unsub. notes 6.50%, 3/1/41   25,000   26,968 
MEG Energy Corp. 144A company guaranty sr. unsec.     
notes 6.375%, 1/30/23 (Canada)   5,000   4,725 
MEG Energy Corp. 144A notes 6.50%, 1/15/25     
(Canada)   20,000   20,300 
Motiva Enterprises, LLC 144A sr. unsec.     
notes 5.75%, 1/15/20   16,000   16,280 
Nabors Industries, Inc. company     
guaranty sr. unsec. notes 5.75%, 2/1/25   20,000   15,141 
Newfield Exploration Co. sr. unsec.     
unsub. notes 5.75%, 1/30/22   25,000   25,313 
Newfield Exploration Co. sr. unsec.     
unsub. notes 5.375%, 1/1/26   10,000   9,800 
Nine Energy Service, Inc. 144A sr. unsec.     
notes 8.75%, 11/1/23   5,000   4,750 
Noble Holding International, Ltd. company     
guaranty sr. unsec. unsub. notes 7.75%, 1/15/24   10,000   7,575 
Noble Holding International, Ltd. 144A company     
guaranty sr. unsec. notes 7.875%, 2/1/26   5,000   4,263 

 

Putnam VT Global Asset Allocation Fund 15 

 


CORPORATE BONDS     
AND NOTES (16.1%)* cont.   Principal amount   Value 
Energy cont.     
Oasis Petroleum, Inc. company guaranty sr. unsec.     
sub. notes 6.875%, 1/15/23   $5,000   $4,650 
Oasis Petroleum, Inc. company guaranty sr. unsec.     
unsub. notes 6.875%, 3/15/22   19,000   17,908 
Oasis Petroleum, Inc. 144A sr. unsec.     
notes 6.25%, 5/1/26   10,000   8,450 
Petrobras Global Finance BV company     
guaranty sr. unsec. unsub. bonds 7.375%, 1/17/27     
(Brazil)   64,000   65,760 
Petrobras Global Finance BV company     
guaranty sr. unsec. unsub. bonds 7.25%, 3/17/44     
(Brazil)   9,000   8,865 
Petrobras Global Finance BV company     
guaranty sr. unsec. unsub. notes 6.25%, 3/17/24     
(Brazil)   161,000   163,013 
Petrobras Global Finance BV company     
guaranty sr. unsec. unsub. notes 6.125%, 1/17/22     
(Brazil)   9,000   9,214 
Petrobras Global Finance BV company     
guaranty sr. unsec. unsub. notes 5.999%, 1/27/28     
(Brazil)   23,000   21,620 
Petrobras Global Finance BV company     
guaranty sr. unsec. unsub. notes 5.299%, 1/27/25     
(Brazil)   4,000   3,820 
Petroleos de Venezuela SA 144A company     
guaranty sr. unsec. notes 6.00%, 11/15/26     
(Venezuela) (In default) †   40,000   5,900 
Petroleos Mexicanos company guaranty sr. unsec.     
unsub. notes 6.375%, 1/23/45 (Mexico)   62,000   49,894 
Petroleos Mexicanos company guaranty sr. unsec.     
unsub. notes 4.875%, 1/18/24 (Mexico)   80,000   74,560 
Precision Drilling Corp. 144A company     
guaranty sr. unsec. notes 7.125%, 1/15/26     
(Canada)   10,000   8,600 
Range Resources Corp. company guaranty sr. unsec.     
sub. notes 5.75%, 6/1/21   15,000   14,513 
Regency Energy Partners LP/Regency Energy     
Finance Corp. company guaranty sr. unsec.     
unsub. notes 4.50%, 11/1/23   9,000   9,003 
Sabine Pass Liquefaction, LLC sr. notes 5.00%,     
3/15/27   12,000   12,040 
SESI, LLC company guaranty sr. unsec.     
notes 7.75%, 9/15/24   15,000   11,925 
SESI, LLC company guaranty sr. unsec.     
unsub. notes 7.125%, 12/15/21   5,000   4,250 
Seventy Seven Energy, Inc. escrow sr. unsec.     
notes 6.50%, 7/15/22 F   5,000   1 
Seventy Seven Operating, LLC escrow company     
guaranty sr. unsec. unsub. notes 6.625%,     
11/15/19 F   20,000   2 
Shell International Finance BV company     
guaranty sr. unsec. unsub. notes 2.875%, 5/10/26     
(Netherlands)   70,000   67,141 
Shell International Finance BV company     
guaranty sr. unsec. unsub. notes 2.125%, 5/11/20     
(Netherlands)   110,000   108,888 
SM Energy Co. sr. unsec. notes 6.625%, 1/15/27   5,000   4,425 
SM Energy Co. sr. unsec. sub. notes 5.00%, 1/15/24   10,000   8,700 
SM Energy Co. sr. unsec. unsub. notes 6.75%,     
9/15/26   10,000   8,950 
SM Energy Co. sr. unsec. unsub. notes 6.125%,     
11/15/22   4,000   3,780 

 

CORPORATE BONDS     
AND NOTES (16.1%)* cont.   Principal amount   Value 
Energy cont.     
Spectra Energy Partners LP sr. unsec.     
notes 3.375%, 10/15/26   $38,000   $35,545 
Statoil ASA company guaranty sr. unsec.     
unsub. notes 2.90%, 11/8/20 (Norway)   30,000   29,889 
Tallgrass Energy Partners LP/Tallgrass Energy     
Finance Corp. 144A company guaranty sr. unsec.     
bonds 5.50%, 1/15/28   10,000   9,600 
Targa Resources Partners LP/Targa Resources     
Partners Finance Corp. company     
guaranty sr. unsec. notes 5.375%, 2/1/27   10,000   9,375 
Targa Resources Partners LP/Targa Resources     
Partners Finance Corp. company     
guaranty sr. unsec. unsub. notes 5.00%, 1/15/28   40,000   36,200 
Total Capital International SA company     
guaranty sr. unsec. unsub. notes 2.75%, 6/19/21     
(France)   115,000   114,163 
Transcanada Trust company guaranty jr. unsec.     
sub. FRB 5.30%, 3/15/77 (Canada)   15,000   12,947 
Transocean Pontus, Ltd. 144A company     
guaranty sr. notes 6.125%, 8/1/25     
(Cayman Islands)   10,000   9,650 
Transocean, Inc. company guaranty sr. unsec.     
unsub. bonds 7.50%, 4/15/31   5,000   3,788 
Transocean, Inc. 144A company guaranty sr. unsec.     
notes 9.00%, 7/15/23   5,000   4,975 
Trinidad Drilling, Ltd. 144A company     
guaranty sr. unsec. notes 6.625%, 2/15/25     
(Canada)   20,000   20,170 
USA Compression Partners LP/USA Compression     
Finance Corp. 144A sr. unsec. notes 6.875%,     
4/1/26   10,000   9,600 
Vermilion Energy, Inc. 144A company     
guaranty sr. unsec. notes 5.625%, 3/15/25     
(Canada)   5,000   4,688 
Weatherford International, Ltd. company     
guaranty sr. unsec. sub. notes 9.875%, 2/15/24   10,000   6,100 
Weatherford International, Ltd. company     
guaranty sr. unsec. unsub. notes 8.25%, 6/15/23   5,000   3,000 
Whiting Petroleum Corp. sr. unsec. notes 6.625%,     
1/15/26   10,000   8,575 
Williams Cos., Inc. (The) sr. unsec.     
unsub. notes 8.75%, 3/15/32   5,000   6,505 
Williams Cos., Inc. (The) sr. unsec.     
unsub. notes 7.75%, 6/15/31   1,000   1,208 
Williams Partners LP sr. unsec. sub. notes 4.30%,     
3/4/24   28,000   27,703 
WPX Energy, Inc. sr. unsec. notes 8.25%, 8/1/23   10,000   10,450 
WPX Energy, Inc. sr. unsec. notes 5.75%, 6/1/26   10,000   9,050 
WPX Energy, Inc. sr. unsec. unsub. notes 6.00%,     
1/15/22   4,000   3,890 
    2,331,345 
Financials (4.0%)     
AIG Global Funding 144A sr. notes 2.15%, 7/2/20   30,000   29,555 
Air Lease Corp. sr. unsec. notes 2.50%, 3/1/21   50,000   48,743 
Air Lease Corp. sr. unsec. sub. bonds 4.625%,     
10/1/28   41,000   38,726 
Alliance Data Systems Corp. 144A company     
guaranty sr. unsec. notes 5.375%, 8/1/22   15,000   14,625 
Alliant Holdings Intermediate, LLC 144A     
sr. unsec. notes 8.25%, 8/1/23   10,000   9,850 
Ally Financial, Inc. company guaranty sr. unsec.     
notes 8.00%, 11/1/31   29,000   32,190 

 

16 Putnam VT Global Asset Allocation Fund 

 


CORPORATE BONDS     
AND NOTES (16.1%)* cont.   Principal amount   Value 
Financials cont.     
Ally Financial, Inc. company guaranty sr. unsec.     
unsub. notes 8.00%, 3/15/20   $13,000   $13,455 
Ally Financial, Inc. sub. unsec. notes 5.75%,     
11/20/25   40,000   39,800 
American International Group, Inc. jr. unsec.     
sub. FRB 8.175%, 5/15/58   48,000   54,720 
Bank of America Corp. jr. unsec. sub. FRN     
Ser. AA, 6.10%, perpetual maturity   46,000   45,540 
Bank of America Corp. jr. unsec. sub. FRN Ser. Z,     
6.50%, perpetual maturity   5,000   5,063 
Bank of America Corp. unsec. sub. notes 6.11%,     
1/29/37   195,000   215,931 
Bank of Montreal sr. unsec. unsub. notes Ser. D,     
3.10%, 4/13/21 (Canada)   30,000   29,985 
Bank of Montreal unsec. sub. FRN 3.803%, 12/15/32     
(Canada)   3,000   2,778 
Berkshire Hathaway Finance Corp. company     
guaranty sr. unsec. notes 4.30%, 5/15/43   29,000   29,087 
Berkshire Hathaway Finance Corp. company     
guaranty sr. unsec. unsub. notes 4.25%, 1/15/21   94,000   96,417 
Camden Property Trust sr. unsec.     
unsub. notes 4.875%, 6/15/23 R   65,000   68,121 
Cantor Fitzgerald LP 144A unsec. bonds 7.875%,     
10/15/19   30,000   30,883 
Cantor Fitzgerald LP 144A unsec. notes 6.50%,     
6/17/22   20,000   21,206 
CBRE Services, Inc. company guaranty sr. unsec.     
notes 5.25%, 3/15/25   5,000   5,209 
CIT Group, Inc. sr. unsec. sub. notes 5.00%,     
8/1/23   10,000   9,800 
CIT Group, Inc. sr. unsec. unsub. notes 5.25%,     
3/7/25   13,000   12,708 
CIT Group, Inc. sr. unsec. unsub. notes 5.00%,     
8/15/22   2,000   1,973 
Citigroup, Inc. sr. unsec. FRB 3.668%, 7/24/28   35,000   33,042 
Citigroup, Inc. sr. unsec. notes 2.65%, 10/26/20   58,000   57,229 
Citigroup, Inc. sr. unsec. unsub. FRB 3.887%,     
1/10/28   235,000   226,754 
Citigroup, Inc. unsec. sub. bonds 4.75%, 5/18/46   10,000   9,245 
Citigroup, Inc. unsec. sub. bonds 4.45%, 9/29/27   46,000   44,335 
CNG Holdings, Inc. 144A sr. notes 9.375%, 5/15/20   20,000   18,700 
CNO Financial Group, Inc. sr. unsec.     
unsub. notes 5.25%, 5/30/25   20,000   19,050 
Commonwealth Bank of Australia 144A sr. unsec.     
notes 3.15%, 9/19/27 (Australia)   75,000   70,971 
Commonwealth Bank of Australia 144A unsec.     
notes 2.20%, 11/9/20 (Australia)   147,000   144,051 
Cooperatieve Rabobank UA company     
guaranty sr. unsec. unsub. bonds Ser. MTN,     
5.25%, 5/24/41 (Netherlands)   40,000   44,061 
Credit Acceptance Corp. company     
guaranty sr. unsec. notes 7.375%, 3/15/23   5,000   5,100 
Credit Acceptance Corp. company     
guaranty sr. unsec. notes 6.125%, 2/15/21   8,000   7,980 
Digital Realty Trust LP company     
guaranty sr. unsec. bonds 4.45%, 7/15/28 R   28,000   27,880 
Digital Realty Trust LP company     
guaranty sr. unsec. notes 3.40%, 10/1/20 R   30,000   29,904 
ESH Hospitality, Inc. 144A company     
guaranty sr. unsec. notes 5.25%, 5/1/25 R   15,000   13,950 

 

CORPORATE BONDS     
AND NOTES (16.1%)* cont.   Principal amount   Value 
Financials cont.     
Fairfax Financial Holdings, Ltd. 144A sr. unsec.     
notes 4.85%, 4/17/28 (Canada)   $65,000   $62,457 
Fairfax US, Inc. 144A company guaranty sr. unsec.     
notes 4.875%, 8/13/24   30,000   29,960 
Fifth Third Bancorp jr. unsec. sub. FRB 5.10%,     
perpetual maturity   16,000   13,900 
Five Corners Funding Trust 144A sr. unsec.     
bonds 4.419%, 11/15/23   135,000   138,427 
Freedom Mortgage Corp. 144A sr. unsec.     
notes 8.25%, 4/15/25   15,000   12,825 
Freedom Mortgage Corp. 144A sr. unsec.     
notes 8.125%, 11/15/24   10,000   8,575 
GLP Capital LP/GLP Financing II, Inc. company     
guaranty sr. unsec. notes 5.25%, 6/1/25   10,000   9,925 
GLP Capital LP/GLP Financing II, Inc. company     
guaranty sr. unsec. unsub. notes 5.375%, 4/15/26   20,000   19,780 
goeasy, Ltd. 144A company guaranty sr. unsec.     
notes 7.875%, 11/1/22 (Canada)   5,000   5,063 
Goldman Sachs Group, Inc. (The) sr. unsec. FRB     
4.223%, 5/1/29   107,000   102,976 
Goldman Sachs Group, Inc. (The) sr. unsec.     
unsub. notes 2.60%, 12/27/20   163,000   159,949 
Goldman Sachs Group, Inc. (The) sr. unsec.     
unsub. notes 2.55%, 10/23/19   107,000   106,324 
Goldman Sachs Group, Inc. (The) unsec.     
sub. notes 6.75%, 10/1/37   24,000   27,214 
Hartford Financial Services Group, Inc. (The)     
sr. unsec. unsub. notes 5.125%, 4/15/22   35,000   36,492 
Hospitality Properties Trust sr. unsec.     
notes 4.375%, 2/15/30 R   50,000   45,778 
Hospitality Properties Trust sr. unsec.     
unsub. notes 4.50%, 3/15/25 R   3,000   2,922 
HUB International, Ltd. 144A sr. unsec.     
notes 7.00%, 5/1/26   20,000   18,050 
Huntington Bancshares, Inc. unsec. notes 4.35%,     
2/4/23   40,000   40,306 
Icahn Enterprises LP/Icahn Enterprises     
Finance Corp. company guaranty sr. unsec.     
notes 6.75%, 2/1/24   10,000   9,900 
Icahn Enterprises LP/Icahn Enterprises     
Finance Corp. company guaranty sr. unsec.     
notes 6.25%, 2/1/22   10,000   9,875 
Icahn Enterprises LP/Icahn Enterprises     
Finance Corp. company guaranty sr. unsec.     
notes 6.00%, 8/1/20   10,000   9,988 
Icahn Enterprises LP/Icahn Enterprises     
Finance Corp. company guaranty sr. unsec.     
notes 5.875%, 2/1/22   17,000   16,660 
ING Bank NV 144A unsec. sub. notes 5.80%, 9/25/23     
(Netherlands)   200,000   209,117 
International Lease Finance Corp. sr. unsec.     
unsub. notes 5.875%, 8/15/22   14,000   14,438 
iStar, Inc. sr. unsec. notes 6.00%, 4/1/22 R   5,000   4,838 
iStar, Inc. sr. unsec. unsub. notes 5.25%,     
9/15/22 R   5,000   4,675 
JPMorgan Chase & Co. jr. unsec. bonds 6.10%,     
perpetual maturity   21,000   20,869 
JPMorgan Chase & Co. jr. unsec. sub. FRB Ser. Z,     
5.30%, perpetual maturity   80,000   79,001 
JPMorgan Chase & Co. sr. unsec. unsub. FRB     
3.964%, 11/15/48   300,000   265,549 

 

Putnam VT Global Asset Allocation Fund 17 

 


CORPORATE BONDS     
AND NOTES (16.1%)* cont.   Principal amount   Value 
Financials cont.     
KKR Group Finance Co. III, LLC 144A company     
guaranty sr. unsec. unsub. bonds 5.125%, 6/1/44   $30,000   $29,550 
Liberty Mutual Group, Inc. 144A company     
guaranty jr. unsec. sub. bonds 7.80%, 3/15/37   26,000   28,340 
LPL Holdings, Inc. 144A company     
guaranty sr. unsec. notes 5.75%, 9/15/25   20,000   18,750 
Macquarie Bank, Ltd. 144A sr. unsec. notes 2.85%,     
7/29/20 (Australia)   40,000   39,632 
MGM Growth Properties Operating Partnership     
LP/MGP Finance Co-Issuer, Inc. company     
guaranty sr. unsec. notes 5.625%, 5/1/24 R   5,000   4,950 
MGM Growth Properties Operating Partnership     
LP/MGP Finance Co-Issuer, Inc. company     
guaranty sr. unsec. notes 4.50%, 1/15/28 R   5,000   4,375 
Mid-America Apartments LP sr. unsec. notes 4.30%,     
10/15/23 R   45,000   45,912 
Mitsubishi UFJ Financial Group, Inc. sr. unsec.     
notes 3.535%, 7/26/21 (Japan)   40,000   40,146 
Morgan Stanley sr. unsec. unsub. notes 4.375%,     
1/22/47   40,000   37,858 
Morgan Stanley sr. unsec. unsub. notes 3.625%,     
1/20/27   185,000   175,824 
Morgan Stanley sr. unsec. unsub. notes 2.65%,     
1/27/20   45,000   44,662 
Nationstar Mortgage, LLC/Nationstar Capital Corp.     
company guaranty sr. unsec. unsub. notes 6.50%,     
7/1/21   15,000   14,625 
Neuberger Berman Group, LLC/Neuberger Berman     
Finance Corp. 144A sr. unsec. notes 4.875%,     
4/15/45   30,000   26,471 
OneAmerica Financial Partners, Inc. 144A     
sr. unsec. notes 7.00%, 10/15/33   78,000   92,890 
Peachtree Corners Funding Trust 144A company     
guaranty sr. unsec. unsub. bonds 3.976%, 2/15/25   105,000   101,852 
Provident Funding Associates LP/PFG Finance Corp.     
144A sr. unsec. notes 6.375%, 6/15/25   15,000   13,500 
Prudential Financial, Inc. jr. unsec. sub. FRN     
5.625%, 6/15/43   25,000   24,656 
Prudential Financial, Inc. jr. unsec. sub. FRN     
5.20%, 3/15/44   54,000   50,625 
Regions Financial Corp. sr. unsec.     
unsub. notes 2.75%, 8/14/22   45,000   43,443 
Royal Bank of Canada unsec. sub. notes Ser. GMTN,     
4.65%, 1/27/26 (Canada)   45,000   46,323 
Springleaf Finance Corp. company     
guaranty sr. unsec. sub. notes 7.125%, 3/15/26   5,000   4,463 
Springleaf Finance Corp. company     
guaranty sr. unsec. unsub. notes 6.875%, 3/15/25   10,000   8,950 
Springleaf Finance Corp. company     
guaranty sr. unsec. unsub. notes 6.125%, 5/15/22   10,000   9,697 
Springleaf Finance Corp. sr. unsec.     
unsub. notes 5.25%, 12/15/19   5,000   5,012 
Starwood Property Trust, Inc. sr. unsec.     
notes 4.75%, 3/15/25 R   15,000   13,500 
Swiss Re Treasury US Corp. 144A company     
guaranty sr. unsec. notes 4.25%, 12/6/42   90,000   87,698 
TMX Finance, LLC/TitleMax Finance Corp. 144A     
sr. notes 11.125%, 4/1/23   10,000   8,047 
Toronto-Dominion Bank (The) unsec. sub. FRB     
3.625%, 9/15/31 (Canada)   58,000   54,922 

 

CORPORATE BONDS     
AND NOTES (16.1%)* cont.   Principal amount   Value 
Financials cont.     
Travelport Corporate Finance PLC 144A     
company guaranty sr. notes 6.00%, 3/15/26     
(United Kingdom)   $20,000   $20,200 
UBS Group Funding (Switzerland) AG 144A     
company guaranty sr. unsec. unsub. notes     
2.65%, 2/1/22 (Switzerland)   200,000   193,575 
USIS Merger Sub, Inc. 144A sr. unsec.     
notes 6.875%, 5/1/25   20,000   18,362 
VEREIT Operating Partnership LP company     
guaranty sr. unsec. notes 4.60%, 2/6/24 R   35,000   35,385 
Vnesheconombank Via VEB Finance PLC 144A     
sr. unsec. unsub. notes 6.80%, 11/22/25 (Russia)   100,000   102,063 
Wand Merger Corp. 144A sr. unsec. notes 9.125%,     
7/15/26   5,000   4,850 
Wand Merger Corp. 144A sr. unsec. notes 8.125%,     
7/15/23   10,000   9,775 
Wells Fargo & Co. jr. unsec. sub. FRB Ser. U,     
5.875%, perpetual maturity   8,000   7,900 
Wells Fargo & Co. sr. unsec. notes Ser. GMTN,     
2.60%, 7/22/20   80,000   79,225 
Westpac Banking Corp. sr. unsec.     
unsub. notes 4.875%, 11/19/19 (Australia)   80,000   81,308 
Westpac Banking Corp. sr. unsec.     
unsub. notes 2.15%, 3/6/20 (Australia)   135,000   133,552 
WeWork Cos, Inc. 144A company guaranty sr. unsec.     
notes 7.875%, 5/1/25   20,000   17,750 
WP Carey, Inc. sr. unsec. unsub. notes 4.60%,     
4/1/24 R   30,000   30,289 
    4,905,357 
Health care (1.5%)     
Air Medical Merger Sub Corp. 144A sr. unsec.     
notes 6.375%, 5/15/23   40,000   33,400 
Allergan Funding SCS company guaranty sr. unsec.     
notes 3.45%, 3/15/22 (Luxembourg)   26,000   25,585 
Allergan Funding SCS company guaranty sr. unsec.     
unsub. notes 3.80%, 3/15/25 (Luxembourg)   15,000   14,643 
Amgen, Inc. sr. unsec. notes 3.45%, 10/1/20   125,000   125,395 
ASP AMC Merger Sub, Inc. 144A sr. unsec.     
notes 8.00%, 5/15/25   15,000   7,950 
AstraZeneca PLC sr. unsec. unsub. notes 6.45%,     
9/15/37 (United Kingdom)   36,000   43,023 
Bausch Health Cos., Inc. 144A company     
guaranty sr. notes 5.50%, 11/1/25   5,000   4,663 
Bausch Health Cos., Inc. 144A company     
guaranty sr. unsec. notes 9.00%, 12/15/25   10,000   9,950 
Bausch Health Cos., Inc. 144A company     
guaranty sr. unsec. notes 6.125%, 4/15/25   40,000   34,900 
Bausch Health Cos., Inc. 144A company     
guaranty sr. unsec. notes 5.875%, 5/15/23   8,000   7,400 
Bausch Health Cos., Inc. 144A company     
guaranty sr. unsub. notes 7.00%, 3/15/24   15,000   15,150 
Bausch Health Cos., Inc. 144A company     
guaranty sr. unsub. notes 6.50%, 3/15/22   5,000   5,025 
Becton Dickinson and Co. (BD) sr. unsec.     
unsub. bonds 4.669%, 6/6/47   59,000   55,493 
Becton Dickinson and Co. (BD) sr. unsec.     
unsub. bonds 3.70%, 6/6/27   51,000   48,238 
BioScrip, Inc. company guaranty sr. unsec.     
notes 8.875%, 2/15/21   15,000   13,988 
Centene Corp. sr. unsec. unsub. notes 6.125%,     
2/15/24   15,000   15,356 

 

18 Putnam VT Global Asset Allocation Fund 

 


CORPORATE BONDS     
AND NOTES (16.1%)* cont.   Principal amount   Value 
Health care cont.     
Centene Corp. sr. unsec. unsub. notes 4.75%,     
5/15/22   $20,000   $19,750 
Centene Escrow I Corp. 144A sr. unsec.     
notes 5.375%, 6/1/26   5,000   4,863 
CHS/Community Health Systems, Inc. company     
guaranty sr. notes 6.25%, 3/31/23   30,000   27,264 
CHS/Community Health Systems, Inc. company     
guaranty sr. unsec. notes 6.875%, 2/1/22   29,000   13,195 
CHS/Community Health Systems, Inc. 144A company     
guaranty sub. notes 8.125%, 6/30/24   23,000   16,790 
Cigna Corp. 144A sr. unsub. notes 3.75%, 7/15/23   75,000   74,750 
Cigna Holding Co. sr. unsec. unsub. notes 4.50%,     
3/15/21   80,000   81,743 
CVS Health Corp. sr. unsec. notes 4.75%, 12/1/22   40,000   41,271 
CVS Health Corp. sr. unsec. unsub. notes 4.78%,     
3/25/38   116,000   111,158 
Elanco Animal Health, Inc. 144A sr. unsec.     
notes 4.90%, 8/28/28   80,000   81,406 
Endo Finance, LLC/Endo Finco, Inc. 144A company     
guaranty sr. unsec. unsub. notes 5.375%, 1/15/23   20,000   15,100 
HCA, Inc. company guaranty sr. bonds 5.25%,     
6/15/26   15,000   14,888 
HCA, Inc. company guaranty sr. notes 6.50%,     
2/15/20   27,000   27,675 
HCA, Inc. company guaranty sr. sub. bonds 5.50%,     
6/15/47   40,000   37,901 
HCA, Inc. company guaranty sr. unsec.     
unsub. notes 7.50%, 2/15/22   4,000   4,240 
Jaguar Holding Co. II/Pharmaceutical Product     
Development, LLC 144A company     
guaranty sr. unsec. notes 6.375%, 8/1/23   15,000   14,355 
Kinetic Concepts, Inc./KCI USA, Inc. 144A company     
guaranty sub. notes 12.50%, 11/1/21   5,000   5,350 
Mallinckrodt International Finance     
SA/Mallinckrodt CB, LLC 144A company     
guaranty sr. unsec. unsub. notes 5.50%, 4/15/25     
(Luxembourg)   10,000   6,925 
Merck & Co., Inc. sr. unsec. unsub. notes 3.70%,     
2/10/45   50,000   48,021 
Molina Healthcare, Inc. company     
guaranty sr. unsec. notes 5.375%, 11/15/22   10,000   9,650 
Molina Healthcare, Inc. 144A company     
guaranty sr. unsec. notes 4.875%, 6/15/25   5,000   4,563 
Novartis Capital Corp. company     
guaranty sr. unsec. unsub. bonds 4.00%, 11/20/45   80,000   80,203 
Omega Healthcare Investors, Inc. company     
guaranty sr. unsec. notes 4.50%, 4/1/27 R   75,000   71,719 
Omega Healthcare Investors, Inc. company     
guaranty sr. unsec. unsub. notes 4.95%, 4/1/24 R   11,000   11,163 
Ortho-Clinical Diagnostics, Inc./Ortho-Clinical     
Diagnostics SA 144A sr. unsec. notes 6.625%,     
5/15/22   23,000   20,700 
Pfizer, Inc. sr. unsec. unsub. notes 3.00%,     
12/15/26   40,000   38,622 
Pfizer, Inc. sr. unsec. unsub. notes 1.70%,     
12/15/19   55,000   54,469 
Service Corp. International sr. unsec.     
notes 5.375%, 1/15/22   14,000   14,035 
Service Corp. International sr. unsec.     
notes 4.625%, 12/15/27   15,000   14,100 
Service Corp. International sr. unsec.     
unsub. notes 5.375%, 5/15/24   33,000   32,670 

 

CORPORATE BONDS     
AND NOTES (16.1%)* cont.   Principal amount   Value 
Health care cont.     
Shire Acquisitions Investments Ireland DAC     
company guaranty sr. unsec. unsub. notes 3.20%,     
9/23/26 (Ireland)   $46,000   $41,717 
Shire Acquisitions Investments Ireland DAC     
company guaranty sr. unsec. unsub. notes 2.875%,     
9/23/23 (Ireland)   40,000   37,813 
Sotera Health Holdings, LLC 144A sr. unsec.     
notes 6.50%, 5/15/23   10,000   9,575 
Tenet Healthcare Corp. company     
guaranty sr. sub. notes 6.00%, 10/1/20   20,000   20,250 
Tenet Healthcare Corp. sr. unsec. notes 8.125%,     
4/1/22   5,000   5,013 
UnitedHealth Group, Inc. sr. unsec.     
unsub. notes 3.95%, 10/15/42   90,000   86,161 
UnitedHealth Group, Inc. sr. unsec.     
unsub. notes 2.75%, 2/15/23   90,000   88,137 
Valeant Pharmaceuticals International, Inc. 144A     
company guaranty sr. unsec. notes 9.25%, 4/1/26   15,000   15,000 
Valeant Pharmaceuticals International, Inc. 144A     
sr. unsec. notes 8.50%, 1/31/27   10,000   9,675 
WellCare Health Plans, Inc. sr. unsec.     
notes 5.25%, 4/1/25   5,000   4,813 
WellCare Health Plans, Inc. 144A sr. unsec.     
notes 5.375%, 8/15/26   5,000   4,825 
Zoetis, Inc. sr. unsec. notes 3.90%, 8/20/28   35,000   34,290 
    1,815,967 
Technology (1.6%)     
Alphabet, Inc. sr. unsec. notes 3.625%, 5/19/21   120,000   122,412 
Alphabet, Inc. sr. unsec. notes 1.998%, 8/15/26   35,000   31,818 
Analog Devices, Inc. sr. unsec.     
unsub. notes 2.85%, 3/12/20   60,000   59,789 
Apple, Inc. sr. unsec. notes 3.45%, 5/6/24   40,000   40,230 
Apple, Inc. sr. unsec. notes 2.10%, 5/6/19   130,000   129,728 
Apple, Inc. sr. unsec. unsub. notes 4.375%,     
5/13/45   80,000   81,245 
Apple, Inc. sr. unsec. unsub. notes 3.85%, 5/4/43   27,000   25,568 
Apple, Inc. sr. unsec. unsub. notes 2.00%, 5/6/20   30,000   29,716 
Avaya, Inc. 144A escrow notes 7.00%, 4/1/19   34,000   — 
Banff Merger Sub, Inc. 144A sr. unsec.     
notes 9.75%, 9/1/26   15,000   13,725 
Broadcom Corp./Broadcom Cayman Finance, Ltd.     
company guaranty sr. unsec. unsub. notes 3.875%,     
1/15/27   35,000   31,399 
Broadcom Corp./Broadcom Cayman Finance, Ltd.     
company guaranty sr. unsec. unsub. notes 3.50%,     
1/15/28   90,000   77,977 
Cisco Systems, Inc. sr. unsec.     
unsub. notes 2.50%, 9/20/26   35,000   32,626 
Cisco Systems, Inc. sr. unsec.     
unsub. notes 2.20%, 2/28/21   75,000   74,006 
Diamond 1 Finance Corp./Diamond 2 Finance Corp.     
144A company guaranty sr. notes 6.02%, 6/15/26   83,000   83,375 
Diamond 1 Finance Corp./Diamond 2 Finance Corp.     
144A company guaranty sr. unsec. notes 7.125%,     
6/15/24   15,000   15,263 
Diamond 1 Finance Corp./Diamond 2 Finance Corp.     
144A sr. bonds 8.35%, 7/15/46   10,000   10,828 
Energizer Gamma Acquisition, Inc. 144A company     
guaranty sr. unsec. notes 6.375%, 7/15/26   5,000   4,588 
Fidelity National Information Services, Inc.     
sr. unsec. sub. notes Ser. 10Y, 4.25%, 5/15/28   20,000   19,868 

 

Putnam VT Global Asset Allocation Fund 19 

 


CORPORATE BONDS     
AND NOTES (16.1%)* cont.   Principal amount   Value 
Technology cont.     
Fidelity National Information Services, Inc.     
sr. unsec. unsub. notes 5.00%, 10/15/25   $9,000   $9,362 
First Data Corp. 144A notes 5.75%, 1/15/24   30,000   29,250 
First Data Corp. 144A sr. notes 5.375%, 8/15/23   15,000   14,738 
Fiserv, Inc. sr. unsec. sub. bonds 4.20%, 10/1/28   55,000   54,890 
IBM Corp. sr. unsec. unsub. notes 1.875%, 8/1/22   140,000   132,089 
Inception Merger Sub, Inc./Rackspace     
Hosting, Inc. 144A sr. unsec. notes 8.625%,     
11/15/24   24,000   18,720 
Infor Software Parent, LLC/Infor Software     
Parent, Inc. 144A company guaranty sr. unsec.     
notes 7.125%, 5/1/21 ‡‡   20,000   19,450 
Infor US, Inc. company guaranty sr. unsec.     
notes 6.50%, 5/15/22   15,000   14,507 
Infor US, Inc. 144A company     
guaranty sr. notes 5.75%, 8/15/20   3,000   3,009 
Legrand France SA sr. unsec. unsub. notes 8.50%,     
2/15/25 (France)   66,000   81,600 
Microchip Technology, Inc. 144A company     
guaranty sr. notes 4.333%, 6/1/23   44,000   42,797 
Microsoft Corp. sr. unsec. unsub. notes 5.30%,     
2/8/41   25,000   29,535 
Microsoft Corp. sr. unsec. unsub. notes 3.70%,     
8/8/46   100,000   95,798 
Microsoft Corp. sr. unsec. unsub. notes 1.55%,     
8/8/21   80,000   77,717 
Oracle Corp. sr. unsec. unsub. notes 5.375%,     
7/15/40   35,000   38,674 
Oracle Corp. sr. unsec. unsub. notes 2.65%,     
7/15/26   10,000   9,268 
Oracle Corp. sr. unsec. unsub. notes 2.50%,     
10/15/22   80,000   77,792 
Oracle Corp. sr. unsec. unsub. notes 2.25%,     
10/8/19   95,000   94,551 
Plantronics, Inc. 144A company     
guaranty sr. unsec. notes 5.50%, 5/31/23   20,000   18,600 
Qorvo, Inc. 144A sr. unsec. notes 5.50%, 7/15/26   5,000   4,775 
Salesforce.com, Inc. sr. unsec.     
unsub. notes 3.70%, 4/11/28   60,000   60,317 
Solera, LLC / Solera Finance, Inc. 144A     
sr. unsec. notes 10.50%, 3/1/24   35,000   37,275 
Tempo Acquisition, LLC/Tempo Acquisition     
Finance Corp. 144A sr. unsec. notes 6.75%,     
6/1/25   25,000   23,125 
TTM Technologies, Inc. 144A company     
guaranty sr. unsec. notes 5.625%, 10/1/25   20,000   18,600 
VMware, Inc. sr. unsec. notes 3.90%, 8/21/27   15,000   13,305 
Western Digital Corp. company guaranty sr. unsec.     
notes 4.75%, 2/15/26   70,000   60,726 
    1,964,631 
Transportation (0.2%)     
CSX Corp. sr. unsec. unsub. notes 4.10%, 3/15/44   70,000   64,913 
Delta Air Lines, Inc. sr. notes Ser. A, 7.75%,     
12/17/19   17,247   17,812 
FedEx Corp. company guaranty sr. unsec.     
unsub. notes 2.625%, 8/1/22   15,000   14,581 
Penske Truck Leasing Co. LP/PTL Finance Corp.     
144A sr. unsec. bonds 3.40%, 11/15/26   16,000   14,953 
Penske Truck Leasing Co. LP/PTL Finance Corp.     
144A sr. unsec. notes 3.90%, 2/1/24   20,000   19,736 

 

CORPORATE BONDS     
AND NOTES (16.1%)* cont.   Principal amount   Value 
Transportation cont.     
United Airlines, Inc. Pass-Through Trust     
pass-through certificates Ser. 07-1, Class A,     
6.636%, 7/2/22   $8,512   $8,860 
United Airlines, Inc. Pass-Through Trust     
pass-through certificates Ser. 14-2, Class A,     
3.75%, 9/3/26   37,320   36,857 
Watco Cos., LLC/Watco Finance Corp. 144A     
company guaranty sr. unsec. notes 6.375%, 4/1/23   24,000   24,060 
    201,772 
Utilities and power (1.1%)     
AES Corp./Virginia (The) sr. unsec. notes 5.50%,     
4/15/25   35,000   34,738 
AES Corp./Virginia (The) sr. unsec. notes 4.875%,     
5/15/23   7,000   6,843 
AES Corp./Virginia (The) sr. unsec. notes 4.50%,     
3/15/23   5,000   4,875 
AES Corp./Virginia (The) sr. unsec.     
unsub. bonds 5.125%, 9/1/27   25,000   24,000 
American Electric Power Co., Inc. sr. unsec.     
unsub. notes Ser. J, 4.30%, 12/1/28   55,000   55,887 
American Transmission Systems, Inc. 144A     
sr. unsec. unsub. bonds 5.00%, 9/1/44   50,000   53,405 
Arizona Public Services Co. sr. unsec.     
notes 4.50%, 4/1/42   15,000   15,303 
Berkshire Hathaway Energy Co. sr. unsec.     
unsub. bonds 6.125%, 4/1/36   39,000   46,684 
Calpine Corp. sr. unsec. sub. notes 5.75%, 1/15/25   25,000   22,875 
Calpine Corp. 144A company     
guaranty sr. notes 5.25%, 6/1/26   10,000   9,125 
Calpine Corp. 144A company     
guaranty sr. sub. notes 5.875%, 1/15/24   3,000   2,940 
Colorado Interstate Gas Co., LLC company     
guaranty sr. unsec. notes 6.85%, 6/15/37   8,000   8,630 
Commonwealth Edison Co. 1st mtge. bonds 5.90%,     
3/15/36   28,000   33,012 
Consolidated Edison Co. of New York, Inc.     
sr. unsec. unsub. notes 4.20%, 3/15/42   45,000   43,844 
Duke Energy Corp. sr. unsec. notes 3.15%, 8/15/27   55,000   51,343 
Dynegy, Inc. company guaranty sr. unsec.     
unsub. notes 7.625%, 11/1/24   20,000   21,100 
Dynegy, Inc. 144A company guaranty sr. unsec.     
notes 8.125%, 1/30/26   10,000   10,800 
Electricite de France (EDF) 144A sr. unsec.     
notes 6.50%, 1/26/19 (France)   60,000   60,119 
Emera US Finance LP company guaranty sr. unsec.     
notes 3.55%, 6/15/26   11,000   10,431 
Enbridge, Inc. sr. unsec. unsub. bonds 4.25%,     
12/1/26 (Canada)   38,000   37,576 
Energy Transfer LP sr. sub. notes 5.875%, 1/15/24   48,000   48,841 
Energy Transfer LP sr. sub. notes 5.50%, 6/1/27   5,000   4,875 
Enterprise Products Operating, LLC company     
guaranty sr. unsec. unsub. bonds 4.25%, 2/15/48   85,000   75,342 
FirstEnergy Transmission, LLC 144A sr. unsec.     
unsub. notes 5.45%, 7/15/44   33,000   35,850 
GenOn Energy, Inc. sr. unsec. notes 9.875%,     
10/15/20   18,000   6,889 
GenOn Energy, Inc./NRG Americas, Inc. company     
guaranty sub. FRN (BBA LIBOR USD 3 Month     
+ 6.50%), 9.392%, 12/1/23   3,902   3,824 
IPALCO Enterprises, Inc. sr. sub. notes 3.70%,     
9/1/24   10,000   9,735 

 

20 Putnam VT Global Asset Allocation Fund 

 


CORPORATE BONDS     
AND NOTES (16.1%)* cont.   Principal amount   Value 
Utilities and power cont.     
Kinder Morgan Energy Partners LP company     
guaranty sr. unsec. notes 5.40%, 9/1/44   $10,000   $9,559 
Kinder Morgan Energy Partners LP company     
guaranty sr. unsec. notes 3.50%, 3/1/21   80,000   79,792 
Kinder Morgan Energy Partners LP company     
guaranty sr. unsec. unsub. notes 3.45%, 2/15/23   25,000   24,395 
Kinder Morgan, Inc. company guaranty sr. unsec.     
unsub. notes 3.15%, 1/15/23   105,000   102,032 
Kinder Morgan, Inc./DE company guaranty     
sr. unsec. notes Ser. GMTN, 7.75%, 1/15/32   17,000   20,349 
MidAmerican Funding, LLC sr. bonds 6.927%, 3/1/29   50,000   62,534 
Nevada Power Co. mtge. notes 7.125%, 3/15/19   40,000   40,305 
NextEra Energy Capital Holdings, Inc. company     
guaranty jr. unsec. sub. FRB 4.80%, 12/1/77   20,000   16,675 
NRG Energy, Inc. company guaranty sr. unsec.     
notes 7.25%, 5/15/26   10,000   10,413 
NRG Energy, Inc. company guaranty sr. unsec.     
notes 6.625%, 1/15/27   20,000   20,150 
NRG Energy, Inc. company guaranty sr. unsec.     
notes 5.75%, 1/15/28   5,000   4,800 
NSTAR Electric Co. sr. unsec.     
unsub. notes 2.375%, 10/15/22 (Canada)   75,000   72,443 
Oncor Electric Delivery Co., LLC sr. notes 4.10%,     
6/1/22   25,000   25,609 
Oncor Electric Delivery Co., LLC sr. notes 3.75%,     
4/1/45   75,000   71,193 
PPL Capital Funding, Inc. company     
guaranty sr. unsec. unsub. notes 4.20%, 6/15/22   60,000   60,554 
Public Service Electric & Gas Co.     
sr. notes Ser. MTN, 5.50%, 3/1/40   25,000   29,797 
Texas Competitive Electric Holdings Co. , LLC/TCEH     
Finance, Inc. escrow company     
guaranty sr. notes 11.50%, 10/1/20 F   13,000   39 
Vistra Operations Co., LLC 144A sr. unsec.     
notes 5.50%, 9/1/26   15,000   14,438 
    1,403,963 
 
Total corporate bonds and notes (cost $20,386,760)   $19,858,094 

 

U.S. GOVERNMENT AND AGENCY     
MORTGAGE OBLIGATIONS (11.7%)*   Principal amount   Value 
U.S. Government Guaranteed Mortgage Obligations (3.2%)   
Government National Mortgage Association     
Pass-Through Certificates     
6.50%, with due dates from 5/20/37 to 11/20/39   $270,314   $306,270 
3.50%, with due dates from 8/20/47 to 11/20/47 3,620,964   3,648,971 
    3,955,241 
U.S. Government Agency Mortgage Obligations (8.5%)   
Federal Home Loan Mortgage Corporation     
Pass-Through Certificates 4.00%, 5/1/48   1,435,340   1,463,935 
Federal National Mortgage Association     
Pass-Through Certificates     
6.00%, TBA, 1/1/49   1,000,000   1,075,156 
4.50%, TBA, 1/1/49   1,000,000   1,035,156 
4.00%, with due dates from 8/1/47 to 1/1/57   899,412   918,401 
3.50%, with due dates from 12/1/47 to 1/1/48   3,933,667   3,933,821 
3.00%, with due dates from 12/1/31 to 5/1/46   2,051,698   2,034,397 
    10,460,866 
Total U.S. government and agency mortgage     
obligations (cost $14,695,649)     $14,416,107 

 

MORTGAGE-BACKED     
SECURITIES (1.7%)*   Principal amount   Value 
Agency collateralized mortgage obligations (0.3%)   
Federal Home Loan Mortgage Corporation     
IFB Ser. 3408, Class EK, ((-4.024 x 1 Month US     
LIBOR) + 25.79%), 15.914%, 4/15/37   $9,667   $13,897 
IFB Ser. 3072, Class SM, ((-3.667 x 1 Month US     
LIBOR) + 23.80%), 14.795%, 11/15/35   13,514   18,977 
IFB Ser. 3249, Class PS, ((-3.3 x 1 Month US     
LIBOR) + 22.28%), 14.173%, 12/15/36   10,219   13,093 
IFB Ser. 3065, Class DC, ((-3 x 1 Month US LIBOR)     
+ 19.86%), 12.495%, 3/15/35   26,557   33,255 
IFB Ser. 2990, Class LB, ((-2.556 x 1 Month US     
LIBOR) + 16.95%), 10.671%, 6/15/34   15,347   17,381 
IFB Ser. 3829, Class AS, IO, ((-1 x 1 Month US     
LIBOR) + 6.95%), 4.495%, 3/15/41   73,624   11,903 
Federal National Mortgage Association     
IFB Ser. 06-8, Class HP, ((-3.667 x 1 Month US     
LIBOR) + 24.57%), 15.377%, 3/25/36   17,979   26,196 
IFB Ser. 07-53, Class SP, ((-3.667 x 1 Month US     
LIBOR) + 24.20%), 15.01%, 6/25/37   16,400   22,668 
IFB Ser. 05-75, Class GS, ((-3 x 1 Month US     
LIBOR) + 20.25%), 12.731%, 8/25/35   6,534   8,125 
Connecticut Avenue Securities FRB Ser. 16-C02,     
Class 1M2, (1 Month US LIBOR + 6.00%), 8.506%,     
9/25/28   20,000   22,792 
Connecticut Avenue Securities FRB Ser. 14-C04,     
Class 1M2, (1 Month US LIBOR + 4.90%), 7.406%,     
11/25/24   7,845   8,752 
Connecticut Avenue Securities FRB Ser. 14-C03,     
Class 2M2, (1 Month US LIBOR + 2.90%), 5.406%,     
7/25/24   15,686   16,361 
Connecticut Avenue Securities FRB Ser. 14-C02,     
Class 1M2, (1 Month US LIBOR + 2.60%), 5.106%,     
5/25/24   16,000   16,749 
Connecticut Avenue Securities FRB Ser. 16-C05,     
Class 2M1, (1 Month US LIBOR + 1.35%), 3.856%,     
1/25/29   5,647   5,654 
IFB Ser. 18-86, Class DS, IO, ((-1 x 1 Month US     
LIBOR) + 6.10%), 3.594%, 12/25/48   232,748   33,603 
Ser. 06-46, Class OC, PO, zero %, 6/25/36   4,552   3,746 
Government National Mortgage Association     
Ser. 10-9, Class UI, IO, 5.00%, 1/20/40   61,565   13,569 
IFB Ser. 13-99, Class AS, IO, ((-1 x 1 Month US     
LIBOR) + 6.05%), 3.58%, 6/20/43   92,834   16,878 
Ser. 16-123, Class LI, IO, 3.50%, 3/20/44   125,008   13,726 
Ser. 13-14, IO, 3.50%, 12/20/42   266,394   37,253 
Ser. 12-141, Class WI, IO, 3.50%, 11/20/41   252,713   29,310 
Ser. 16-H16, Class EI, IO, 2.209%, 6/20/66 W   191,228   21,150 
Ser. 15-H26, Class DI, IO, 2.118%, 10/20/65 W   257,197   24,532 
    429,570 
Commercial mortgage-backed securities (0.8%)     
Banc of America Commercial Mortgage Trust FRB     
Ser. 07-1, Class XW, IO, 0.211%, 1/15/49 W   216,476   253 
Banc of America Commercial Mortgage Trust 144A     
FRB Ser. 04-4, Class XC, IO, 0.324%, 7/10/42 W   3,790   — 
FRB Ser. 07-5, Class XW, IO, zero %, 2/10/51 W   329,484   3 
Banc of America Merrill Lynch Commercial     
Mortgage, Inc. 144A FRB Ser. 04-5, Class XC, IO,     
0.441%, 11/10/41 W   51,722   126 
Bear Stearns Commercial Mortgage Securities Trust     
FRB Ser. 04-PR3I, Class X1, IO, zero %, 2/11/41 W   2,424   — 
Bear Stearns Commercial Mortgage Securities Trust     
144A FRB Ser. 06-PW14, Class X1, IO, 0.314%,     
12/11/38 W   36,042   370 

 

Putnam VT Global Asset Allocation Fund 21 

 


MORTGAGE-BACKED     
SECURITIES (1.7%)* cont.   Principal amount   Value 
Commercial mortgage-backed securities cont.     
Capmark Mortgage Securities, Inc. FRB Ser. 97-C1,     
Class X, IO, 1.352%, 7/15/29 W   $4,908   $68 
CD Commercial Mortgage Trust 144A FRB     
Ser. 07-CD4, Class XW, IO, 0.752%, 12/11/49 W   4,199   — 
Citigroup Commercial Mortgage Trust 144A     
FRB Ser. 12-GC8, Class XA, IO, 1.80%, 9/10/45 W   338,470   17,826 
FRB Ser. 06-C5, Class XC, IO, 0.495%, 10/15/49 W   602,091   6 
COMM Mortgage Trust     
FRB Ser. 12-LC4, Class C, 5.539%, 12/10/44 W   61,000   60,697 
FRB Ser. 14-CR17, Class C, 4.737%, 5/10/47 W   26,000   25,898 
Ser. 13-CR11, Class AM, 4.715%, 8/10/50 W   20,000   21,068 
FRB Ser. 14-UBS6, Class C, 4.465%, 12/10/47 W   36,000   35,076 
Ser. 13-CR13, Class AM, 4.449%, 11/10/46 W   85,000   88,530 
Ser. 12-CR2, Class AM, 3.791%, 8/15/45   30,000   30,119 
FRB Ser. 14-CR18, Class XA, IO, 1.147%, 7/15/47 W   254,911   9,281 
FRB Ser. 14-CR16, Class XA, IO, 1.127%, 4/10/47 W   187,866   8,170 
FRB Ser. 14-CR20, Class XA, IO, 1.124%, 11/10/47 W 325,317   14,496 
FRB Ser. 13-CR11, Class XA, IO, 1.095%, 8/10/50 W   540,807   20,686 
FRB Ser. 14-CR17, Class XA, IO, 1.078%, 5/10/47 W   689,727   29,963 
FRB Ser. 14-UBS6, Class XA, IO, 0.954%, 12/10/47 W  932,986   36,614 
FRB Ser. 14-LC17, Class XA, IO, 0.892%, 10/10/47 W 698,946   19,565 
COMM Mortgage Trust 144A FRB Ser. 06-C8,     
Class XS, IO, 0.44%, 12/10/46 W   313,745   3 
Credit Suisse Commercial Mortgage Trust 144A FRB     
Ser. 07-C2, Class AX, IO, 0.04%, 1/15/49 W   674,127   7 
CSMC Trust FRB Ser. 16-NXSR, Class C, 4.362%,     
12/15/49 W   70,000   68,443 
GE Commercial Mortgage Corp. Trust 144A FRB     
Ser. 07-C1, Class XC, IO, 0.087%, 12/10/49 W   1,563,450   1,425 
GMAC Commercial Mortgage Securities, Inc. Trust     
144A FRB Ser. 05-C1, Class X1, IO, 0.982%,     
5/10/43 W   15,496   — 
GS Mortgage Securities Corp. II FRB Ser. 15-GC30,     
Class XA, IO, 0.859%, 5/10/50 W   457,910   16,805 
GS Mortgage Securities Trust FRB Ser. 14-GC22,     
Class C, 4.689%, 6/10/47 W   19,000   19,016 
GS Mortgage Securities Trust 144A FRB     
Ser. 06-GG8, Class X, IO, 0.871%, 11/10/39 W   1,036,108   16,211 
JPMBB Commercial Mortgage Securities Trust     
FRB Ser. 13-C15, Class C, 5.199%, 11/15/45 W   30,000   30,728 
FRB Ser. 14-C22, Class C, 4.558%, 9/15/47 W   23,000   22,388 
JPMorgan Chase Commercial Mortgage Securities     
Trust     
Ser. 12-C6, Class AS, 4.117%, 5/15/45   16,000   16,216 
FRB Ser. 06-LDP8, Class X, IO, 0.285%, 5/15/45 W   205,366   256 
FRB Ser. 07-LDPX, Class X, IO, 0.142%, 1/15/49 W   560,812   6 
JPMorgan Chase Commercial Mortgage Securities     
Trust 144A FRB Ser. 05-CB12, Class X1, IO,     
0.361%, 9/12/37 W   181,408   195 
LB-UBS Commercial Mortgage Trust 144A     
FRB Ser. 06-C6, Class XCL, IO, 0.685%, 9/15/39 W   401,438   5,469 
FRB Ser. 05-C5, Class XCL, IO, 0.507%, 9/15/40 W   211,661   1,064 
FRB Ser. 05-C7, Class XCL, IO, 0.317%, 11/15/40 W   52,273   102 
Merrill Lynch Mortgage Trust 144A     
FRB Ser. 04-KEY2, Class XC, IO, 0.904%, 8/12/39 W   14,575   — 
FRB Ser. 05-MCP1, Class XC, IO, 0.001%, 6/12/43 W   53,987   1 
Mezz Cap Commercial Mortgage Trust 144A     
FRB Ser. 05-C3, Class X, IO, 6.722%, 5/15/44 W   577   73 
FRB Ser. 06-C4, Class X, IO, 6.235%, 7/15/45 W   13,665   404 

 

MORTGAGE-BACKED     
SECURITIES (1.7%)* cont.   Principal amount   Value 
Commercial mortgage-backed securities cont.     
Morgan Stanley Bank of America Merrill Lynch Trust     
Ser. 14-C18, Class C, 4.489%, 10/15/47 W   $25,000   $24,749 
FRB Ser. 14-C17, Class XA, IO, 1.19%, 8/15/47 W   283,563   10,340 
FRB Ser. 13-C12, Class XA, IO, 0.617%, 10/15/46 W   466,907   11,296 
UBS-Barclays Commercial Mortgage Trust 144A     
FRB Ser. 12-C3, Class C, 5.031%, 8/10/49 W   50,000   50,776 
FRB Ser. 12-C4, Class XA, IO, 1.64%, 12/10/45 W   204,655   10,131 
Wachovia Bank Commercial Mortgage Trust     
FRB Ser. 05-C21, Class D, 5.226%, 10/15/44 W   11,692   11,538 
FRB Ser. 07-C34, IO, 0.107%, 5/15/46 W   218,746   71 
Wachovia Bank Commercial Mortgage Trust 144A FRB     
Ser. 06-C26, Class XC, IO, 0.045%, 6/15/45 W   2,144   — 
Wells Fargo Commercial Mortgage Trust     
FRB Ser. 13-LC12, Class AS, 4.287%, 7/15/46 W   19,000   19,528 
FRB Ser. 13-LC12, Class C, 4.287%, 7/15/46 W   24,000   22,992 
WF-RBS Commercial Mortgage Trust     
Ser. 13-C12, Class AS, 3.56%, 3/15/48   33,000   32,966 
Ser. 13-C11, Class AS, 3.311%, 3/15/45   12,000   11,856 
WF-RBS Commercial Mortgage Trust 144A     
FRB Ser. 11-C3, Class D, 5.683%, 3/15/44 W   32,000   28,309 
FRB Ser. 11-C2, Class D, 5.652%, 2/15/44 W   25,000   24,920 
FRB Ser. 13-C15, Class D, 4.473%, 8/15/46 W   43,000   36,968 
FRB Ser. 12-C9, Class XA, IO, 1.885%, 11/15/45 W   221,308   12,947 
FRB Ser. 11-C5, Class XA, IO, 1.736%, 11/15/44 W   282,088   10,504 
FRB Ser. 12-C10, Class XA, IO, 1.565%, 12/15/45 W   320,039   15,758 
    953,276 
Residential mortgage-backed securities (non-agency) (0.6%)   
Citigroup Mortgage Loan Trust, Inc. FRB     
Ser. 05-2, Class 1A2A, 4.538%, 5/25/35 W   30,184   30,816 
Countrywide Alternative Loan Trust     
FRB Ser. 06-OA7, Class 1A2, (1 Month US LIBOR     
+ 0.94%), 3.097%, 6/25/46   115,338   105,918 
FRB Ser. 06-OA10, Class 4A1, (1 Month US LIBOR     
+ 0.19%), 2.696%, 8/25/46   127,628   108,579 
FRB Ser. 05-27, Class 1A1, 2.393%, 8/25/35 W   35,349   30,340 
Federal National Mortgage Association     
Connecticut Avenue Securities FRB Ser. 16-C03,     
Class 2M2, (1 Month US LIBOR + 5.90%), 8.406%,     
10/25/28   19,703   22,284 
Connecticut Avenue Securities FRB Ser. 15-C04,     
Class 1M2, (1 Month US LIBOR + 5.70%), 8.206%,     
4/25/28   25,600   28,819 
Connecticut Avenue Securities FRB Ser. 15-C04,     
Class 2M2, (1 Month US LIBOR + 5.55%), 8.056%,     
4/25/28   81,128   90,370 
Connecticut Avenue Securities FRB Ser. 15-C03,     
Class 2M2, (1 Month US LIBOR + 5.00%), 7.506%,     
7/25/25   6,878   7,519 
Connecticut Avenue Securities FRB Ser. 15-C01,     
Class 1M2, (1 Month US LIBOR + 4.30%), 6.806%,     
2/25/25   18,891   20,394 
Connecticut Avenue Securities FRB Ser. 15-C02,     
Class 1M2, (1 Month US LIBOR + 4.00%), 6.506%,     
5/25/25   13,165   14,187 
Long Beach Mortgage Loan Trust FRB Ser. 04-1,     
Class A2, (1 Month US LIBOR + 0.80%), 3.306%,     
2/25/34   26,157   25,413 
Merrill Lynch Mortgage Investors Trust FRB     
Ser. 05-A2, Class A2, 3.677%, 2/25/35 W   10,325   10,624 

 

22 Putnam VT Global Asset Allocation Fund 

 


MORTGAGE-BACKED     
SECURITIES (1.7%)* cont.   Principal amount   Value 
Residential mortgage-backed securities (non-agency) cont.   
New Century Home Equity Loan Trust FRB Ser. 03-4,     
Class M1, (1 Month US LIBOR + 1.13%), 3.631%,     
10/25/33   $62,493   $62,398 
Park Place Securities, Inc. Asset-Backed     
Pass-Through Certificates FRB Ser. 04-WCW2,     
Class M3, (1 Month US LIBOR + 1.05%), 3.556%,     
10/25/34   30,000   29,536 
Structured Asset Investment Loan Trust FRB     
Ser. 04-10, Class A10, (1 Month US LIBOR     
+ 0.90%), 3.406%, 11/25/34   33,386   33,280 
Structured Asset Mortgage Investments II Trust     
FRB Ser. 07-AR7, Class 1A1, (1 Month US LIBOR     
+ 0.85%), 3.356%, 5/25/47   39,744   33,111 
WaMu Mortgage Pass-Through Certificates Trust     
FRB Ser. 05-AR12, Class 1A8, 4.038%, 10/25/35 W   38,874   37,878 
FRB Ser. 05-AR9, Class A1C3, (1 Month US LIBOR     
+ 0.96%), 3.466%, 7/25/45   45,549   44,128 
FRB Ser. 05-AR13, Class A1C3, (1 Month US LIBOR     
+ 0.49%), 2.996%, 10/25/45   18,882   17,947 
Wells Fargo Mortgage Backed Securities Trust FRB     
Ser. 06-AR2, Class 1A1, 4.595%, 3/25/36 W   17,895   17,716 
    771,257 
 
Total mortgage-backed securities (cost $2,100,530)   $2,154,103 

 

COMMODITY LINKED NOTES (1.2%)* †††   Principal amount   Value 
Goldman Sachs International 144A notes zero %,   
2019 (Indexed to the S&P GSCI Excess Return   
Index multiplied by 3)   $1,533,000   $1,534,237 
Total commodity Linked Notes (cost $1,533,000)   $1,534,237 
 
ASSET-BACKED SECURITIES (0.5%)*   Principal amount   Value 
 
loanDepot Station Place Agency Securitization   
Trust 144A FRB Ser. 17-LD1, Class A, (1 Month US   
LIBOR + 0.80%), 3.306%, 11/25/50   $62,000   $62,000 
Station Place Securitization Trust 144A     
FRB Ser. 18-1, Class A, (1 Month US LIBOR     
+ 0.90%), 3.215%, 4/24/19   162,000   162,000 
FRB Ser. 18-5, Class A, (1 Month US LIBOR     
+ 0.70%), 3.015%, 9/24/19   72,000   72,000 
FRB Ser. 18-3, Class A, (1 Month US LIBOR     
+ 0.70%), 3.015%, 7/24/19   128,000   128,000 
FRB Ser. 18-8, Class A, (1 Month US LIBOR     
+ 0.70%), 2.982%, 2/24/20   90,000   90,000 
Towd Point Asset Trust 144A FRB Ser. 18-SL1,   
Class A, (1 Month US LIBOR + 0.60%), 3.106%,     
1/25/46   85,787   85,014 
Total asset-backed securities (cost $599,442)   $599,014 
 
FOREIGN GOVERNMENT AND AGENCY     
BONDS AND NOTES (0.4%)*   Principal amount   Value 
 
Argentina (Republic of) sr. unsec.     
unsub. notes 7.50%, 4/22/26 (Argentina)   $150,000   $120,375 
Buenos Aires (Province of) 144A sr. unsec.     
unsub. bonds 7.875%, 6/15/27 (Argentina)   165,000   117,975 
Indonesia (Republic of) sr. unsec.     
unsub. notes Ser. REGS, 5.875%, 1/15/24     
(Indonesia)   200,000   212,750 
Mexico (Government of) sr. unsec. bonds 5.55%,   
1/21/45 (Mexico)   23,000   23,251 
Venezuela (Republic of) sr. unsec. notes 9.00%,   
5/7/23 (Venezuela) (In default) †   23,000   5,089 

 

FOREIGN GOVERNMENT AND AGENCY     
BONDS AND NOTES (0.4%)* cont.   Principal amount   Value 
 
Venezuela (Republic of) sr. unsec.     
unsub. notes 8.25%, 10/13/24     
(Venezuela) (In default) †   $36,000   $8,280 
Total foreign government and agency bonds     
and notes (cost $586,947)     $487,720 
 
SENIOR LOANS (0.2%)* c   Principal amount   Value 
Avaya, Inc. bank term loan FRN Ser. B, (BBA LIBOR     
USD 3 Month + 4.25%), 6.701%, 12/15/24   $19,788   $19,107 
California Resources Corp. bank term loan FRN     
(BBA LIBOR USD 3 Month + 4.75%), 7.037%,     
11/17/22   20,000   18,600 
CPG International, Inc. bank term loan FRN (BBA     
LIBOR USD 3 Month + 3.75%), 6.633%, 5/5/24   4,663   4,453 
Forterra Finance, LLC bank term loan FRN (BBA     
LIBOR USD 3 Month + 3.00%), 5.522%, 10/25/23   9,887   8,809 
FTS International, Inc. bank term loan FRN     
Ser. B, (BBA LIBOR USD 3 Month + 4.75%), 7.272%,     
4/16/21   4,027   3,967 
Gates Global, LLC bank term loan FRN Ser. B, (BBA     
LIBOR USD 3 Month + 2.75%), 5.272%, 3/31/24   13,803   13,087 
Jo-Ann Stores, LLC bank term loan FRN (BBA LIBOR     
USD 3 Month + 9.25%), 11.604%, 5/21/24   15,000   14,475 
KCA Deutag Alpha, Ltd. bank term loan FRN Ser. B,     
(BBA LIBOR USD 3 Month + 6.75%), 9.021%, 3/21/23   3,956   3,224 
Keane Group Holdings, LLC bank term loan FRN     
Ser. B, (BBA LIBOR USD 3 Month + 3.75%), 6.313%,     
5/25/25   13   12 
Navistar, Inc. bank term loan FRN Ser. B, (BBA     
LIBOR USD 3 Month + 3.50%), 5.89%, 11/6/24   34,738   33,261 
Neiman Marcus Group, Ltd., Inc. bank term loan     
FRN (BBA LIBOR USD 3 Month + 3.25%), 5.63%,     
10/25/20   18,721   15,843 
Rackspace Hosting, Inc. bank term loan FRN (BBA     
LIBOR USD 3 Month + 3.00%), 5.582%, 11/3/23   4,962   4,339 
Revlon Consumer Products Corp. bank term loan FRN     
Ser. B, (BBA LIBOR USD 3 Month + 3.50%), 6.207%,     
9/7/23   9,524   6,703 
Robertshaw Holdings Corp. bank term loan FRN (BBA     
LIBOR USD 3 Month + 8.00%), 10.563%, 2/28/26   10,000   9,100 
Robertshaw Holdings Corp. bank term loan FRN (BBA     
LIBOR USD 3 Month + 3.50%), 6.063%, 2/28/25   9,925   8,933 
Titan Acquisition, Ltd. (United Kingdom) bank     
term loan FRN Ser. B, (BBA LIBOR USD 3 Month     
+ 3.00%), 5.522%, 3/28/25   24,813   22,812 
Total senior loans (cost $199,488)     $186,725 

 

PURCHASED OPTIONS         
OUTSTANDING (—%)*   Expiration   Notional   Contract   
Counterparty   date/strike price   amount   amount   Value 
Bank of America N.A.         
GBP/USD (Call)   Jun-19/$1.34   1,037,843   GBP 814,250  $17,288 
Citibank, N.A.         
USD/JPY (Put)   Jan-19/JPY 108.00   $2,124,400   $2,124,400  10,469 
Goldman Sachs International       
USD/CNH (Call)   Apr-19/CNH 7.00   1,135,300   1,135,300  6,009 
JPMorgan Chase Bank N.A.       
EUR/NOK (Put)   Mar-19/NOK 9.80   505,161   EUR 440,900  4,043 
Total purchased options outstanding (cost $47,314)   $37,809 

 

Putnam VT Global Asset Allocation Fund 23 

 


PREFERRED STOCKS (—%)*   Shares   Value 
GMAC Capital Trust I Ser. 2, $1.91 cum. ARP   $680   $17,238 
Total preferred stocks (cost $17,000)     $17,238 
 
CONVERTIBLE PREFERRED STOCKS (—%)*   Shares   Value 
EPR Properties Ser. C, $1.438 cv. pfd. R   575   $15,333 
Nine Point Energy 6.75% cv. pfd.   1   1,176 
Total convertible preferred stocks (cost $11,501)     $16,509 

 

CONVERTIBLE BONDS AND NOTES (—%)*   Principal amount   Value 
DISH Network Corp. cv. sr. unsec. notes     
3.375%, 8/15/26   $5,000   $4,038 
Total convertible bonds and notes (cost $4,653)   $4,038 

 

  Expiration       
WARRANTS (—%)* †   date  Strike price Warrants Value 
Halcon Resources Corp.   9/9/20   $14.04   244   $5 
Total warrants (cost $—)         $5 
 
    Principal amount/   
SHORT-TERM INVESTMENTS (13.6%)*     shares   Value 
Putnam Short Term Investment       
Fund 2.58% L     Shares 16,270,462   $16,270,462 
U.S. Treasury Bills 2.543%, 6/13/19 §     $3,000   2,967 
U.S. Treasury Bills 2.471%, 6/27/19 #     1,001   988 
U.S. Treasury Bills 2.419%, 2/19/19 # §     3,000   2,990 
U.S. Treasury Bills 2.407%, 3/14/19 # §     125,999   125,408 
U.S. Treasury Bills 2.381%, 3/7/19 #     11,999   11,950 
U.S. Treasury Bills 2.376%, 2/14/19 #     62,000   61,822 
U.S. Treasury Bills 2.294%, 1/24/19 §     46,000   45,935 
U.S. Treasury Bills 2.297%, 1/17/19 # §     86,000   85,918 
U.S. Treasury Bills 2.271%, 1/10/19 # §     168,000   167,917 
Total short-term investments (cost $16,776,336)     $16,776,357 
 
Total investments (cost $123,842,715)       $125,477,137 

 

Key to holding’s currency abbreviations 
 
CNH Chinese Yuan (Offshore)  
EUR  Euro 
GBP  British Pound 
JPY  Japanese Yen 
NOK  Norwegian Krone 
USD/$   United States Dollar 
 
Key to holding’s abbreviations 
 
ARP Adjustable Rate Preferred Stock: the rate shown is the current interest  
  rate at the close of the reporting period 
DAC Designated Activity Company  
FRB Floating Rate Bonds: the rate shown is the current interest rate at the   
  close of the reporting period. Rates may be subject to a cap or floor. 
  For certain securities, the rate may represent a fixed rate currently in 
  place 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. Rates may be subject to a 
  cap or floor. For certain securities, the rate may represent a fixed rate 
  currently in place 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. Rates may be subject to a cap or floor. 
IO   Interest Only 
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, 2018 through December 31, 2018 (the reporting period). Within the following notes to the portfolio, 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 “ASC 820” represent Accounting Standards Codification 820 Fair Value Measurements and Disclosures.

* Percentages indicated are based on net assets of $123,619,987.

††† The value of the commodity linked notes, which are marked to market daily, may be based on a multiple of the performance of the index. The multiple (or leverage) will increase the volatility of the note’s value relative to the change in the underlying index.

† This security is non-income-producing.

‡‡ Income may be received in cash or additional securities at the discretion of the issuer. The rate shown in parenthesis is the rate paid in kind, if applicable.

# 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. Collateral at period end totaled $407,981 and is included in Investments in securities on the Statement of assets and liabilities (Notes 1 and 9).

§ 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. Collateral at period end totaled $97,837 and is included in Investments in securities on the Statement of assets and liabilities (Notes 1 and 9).

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 7).

F This security is valued by Putnam Management at fair value following procedures approved by the Trustees. Securities are classified as 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).

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.

W The rate shown represents the weighted average coupon associated with the underlying mortgage pools. Rates may be subject to a cap or floor.

At the close of the reporting period, the fund maintained liquid assets totaling $5,524,207 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.

144A after the name of an issuer represents securities exempt from registration under Rule 144A of 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.

24 Putnam VT Global Asset Allocation Fund 

 


FORWARD CURRENCY CONTRACTS at 12/31/18 (aggregate face value $13,588,711)        Unrealized 
    Contract  Delivery    Aggregate   appreciation/ 
Counterparty  Currency  type*  date  Value   face value   (depreciation) 
Bank of America N.A.             
  Australian Dollar  Buy  1/16/19  $144,784  $152,218  $(7,434) 
  Brazilian Real  Buy  1/3/19  132,465  133,733  (1,268) 
  Brazilian Real  Sell  1/3/19  132,465  131,220  (1,245) 
  British Pound  Buy  3/20/19  124,225  124,589  (364) 
  Canadian Dollar  Buy  1/16/19  272,076  282,478  (10,402) 
  Euro  Buy  3/20/19  556,508  552,508  4,000 
  Hong Kong Dollar  Sell  2/20/19  222,257  222,308  51 
  Japanese Yen  Buy  2/20/19  12,241  11,290  951 
  New Zealand Dollar  Sell  1/16/19  120,910  120,968  58 
  South Korean Won  Buy  2/20/19  134,716  135,104  (388) 
  South Korean Won  Sell  2/20/19  135,614  132,766  (2,848) 
Barclays Bank PLC             
  Australian Dollar  Buy  1/16/19  138,513  141,705  (3,192) 
  British Pound  Sell  3/20/19  1,023  1,025  2 
  Canadian Dollar  Buy  1/16/19  129,040  133,719  (4,679) 
  Euro  Sell  3/20/19  135,841  134,800  (1,041) 
  Singapore Dollar  Buy  2/20/19  1,689  1,552  137 
Citibank, N.A.             
  Australian Dollar  Buy  1/16/19  138,584  141,428  (2,844) 
  Canadian Dollar  Sell  1/16/19  28,871  40,731  11,860 
  Danish Krone  Buy  3/20/19  136,707  136,160  547 
  Euro  Sell  3/20/19  26,638  26,465  (173) 
  Japanese Yen  Sell  2/20/19  72,430  70,083  (2,347) 
  Norwegian Krone  Sell  3/20/19  61,435  60,706  (729) 
  South Korean Won  Buy  2/20/19  1,813  649  1,164 
Credit Suisse International             
  Australian Dollar  Buy  1/16/19  446,187  454,917  (8,730) 
  Canadian Dollar  Buy  1/16/19  132,850  145,642  (12,792) 
  Euro  Sell  3/20/19  202,954  201,790  (1,164) 
  Japanese Yen  Sell  2/20/19  70,883  68,795  (2,088) 
  New Zealand Dollar  Sell  1/16/19  144,206  142,163  (2,043) 
Goldman Sachs International             
  Australian Dollar  Sell  1/16/19  420,261  432,491  12,230 
  Brazilian Real  Buy  1/3/19  132,465  133,918  (1,453) 
  Brazilian Real  Sell  1/3/19  132,465  132,439  (26) 
  Brazilian Real  Buy  4/2/19  131,595  131,567  28 
  Brazilian Real  Sell  4/2/19  131,595  130,430  (1,165) 
  Canadian Dollar  Sell  1/16/19  88,371  92,955  4,584 
  Euro  Sell  3/20/19  253,346  252,258  (1,088) 
  New Taiwan Dollar  Buy  2/20/19  133,857  134,269  (412) 
  New Taiwan Dollar  Sell  2/20/19  134,360  133,605  (755) 
  New Zealand Dollar  Buy  1/16/19  885,175  904,566  (19,391) 
  Norwegian Krone  Buy  3/20/19  827,074  845,254  (18,180) 
  South African Rand  Buy  1/16/19  1,735  9,404  (7,669) 
  Swedish Krona  Sell  3/20/19  202,358  199,598  (2,760) 
HSBC Bank USA, National Association             
  Australian Dollar  Sell  1/16/19  34,945  24,792  (10,153) 
  British Pound  Buy  3/20/19  236,935  236,067  868 
  Canadian Dollar  Sell  1/16/19  81,336  79,235  (2,101) 
  Chinese Yuan (Offshore)  Buy  2/20/19  161,004  160,564  440 
  Euro  Sell  3/20/19  162,132  160,549  (1,583) 
  Japanese Yen  Sell  2/20/19  141,465  138,217  (3,248) 

 

Putnam VT Global Asset Allocation Fund 25 

 


FORWARD CURRENCY CONTRACTS at 12/31/18 (aggregate face value $13,588,711) cont.        Unrealized 
    Contract  Delivery    Aggregate   appreciation/ 
Counterparty  Currency  type*  date  Value   face value   (depreciation) 
HSBC Bank USA, National Association cont.           
  Mexican Peso  Sell  1/16/19  $2,905  $1,910  $(995) 
  New Zealand Dollar  Buy  1/16/19  244,842  241,289  3,553 
  Norwegian Krone  Buy  3/20/19  129,763  135,741  (5,978) 
  Swedish Krona  Sell  3/20/19  65,799  64,368  (1,431) 
JPMorgan Chase Bank N.A.             
  Australian Dollar  Buy  1/16/19  115,264  116,851  (1,587) 
  British Pound  Buy  3/20/19  47,848  51,086  (3,238) 
  Canadian Dollar  Sell  1/16/19  298,161  308,494  10,333 
  Euro  Sell  3/20/19  66,190  65,296  (894) 
  Japanese Yen  Buy  2/20/19  123,394  122,538  856 
  New Zealand Dollar  Buy  1/16/19  25,109  22,886  2,223 
  Norwegian Krone  Sell  3/20/19  26,644  24,107  (2,537) 
  Singapore Dollar  Buy  2/20/19  67,719  68,257  (538) 
  Swedish Krona  Sell  3/20/19  77,765  78,113  348 
  Swiss Franc  Buy  3/20/19  297,061  294,308  2,753 
NatWest Markets PLC             
  Australian Dollar  Buy  1/16/19  175,502  180,720  (5,218) 
  Canadian Dollar  Sell  1/16/19  3,883  5,752  1,869 
  Euro  Buy  3/20/19  251,847  250,945  902 
  Japanese Yen  Buy  2/20/19  53,939  55,491  (1,552) 
  New Zealand Dollar  Sell  1/16/19  266,862  266,922  60 
  Norwegian Krone  Buy  3/20/19  133,976  138,984  (5,008) 
  Swedish Krona  Sell  3/20/19  31,458  31,145  (313) 
State Street Bank and Trust Co.             
  Australian Dollar  Buy  1/16/19  144,009  148,941  (4,932) 
  Canadian Dollar  Sell  1/16/19  443,909  457,076  13,167 
  Euro  Sell  3/20/19  347,213  344,853  (2,360) 
  Japanese Yen  Buy  2/20/19  41,552  42,579  (1,027) 
  New Zealand Dollar  Sell  1/16/19  281,295  277,988  (3,307) 
  Norwegian Krone  Sell  3/20/19  9,493  1,139  (8,354) 
  Swedish Krona  Sell  3/20/19  243,261  241,902  (1,359) 
UBS AG             
  Australian Dollar  Sell  1/16/19  79,473  82,907  3,434 
  British Pound  Sell  3/20/19  139,193  139,450  257 
  Canadian Dollar  Buy  1/16/19  63,311  64,429  (1,118) 
  Euro  Sell  3/20/19  220,482  218,924  (1,558) 
  New Zealand Dollar  Sell  1/16/19  180,795  181,527  732 
  Norwegian Krone  Buy  3/20/19  217,065  221,811  (4,746) 
WestPac Banking Corp.             
  Australian Dollar  Sell  1/16/19  130,411  133,511  3,100 
  Canadian Dollar  Sell  1/16/19  248,117  251,921  3,804 
  New Zealand Dollar  Sell  1/16/19  23,766  20,860  (2,906) 
Unrealized appreciation            84,311 
Unrealized (depreciation)            (196,711) 
Total            $(112,400) 

 

* The exchange currency for all contracts listed is the United States Dollar.

26 Putnam VT Global Asset Allocation Fund 

 


FUTURES           
CONTRACTS  Number        Unrealized 
OUTSTANDING  of  Notional    Expiration appreciation/
at 12/31/18  contracts  amount  Value  date (depreciation)
Russell 2000           
Index E-Mini           
(Long)  71  $4,787,383 $4,788,950  Mar-19  $(306,129) 
S&P 500 Index           
E-Mini (Long)  30  3,760,275  3,757,800  Mar-19  (215,907) 
S&P 500 Index           
E-Mini (Short)  36  4,512,330  4,509,360  Mar-19  259,141 
Tokyo Price Index           
(Long)  11  1,499,474  1,498,882  Mar-19  (80,484) 
U.S. Treasury           
Bond 30 yr (Long)  8  1,168,000  1,168,000  Mar-19  52,797 
U.S. Treasury           
Bond Ultra 30 yr           
(Long)  17  2,731,156  2,731,156  Mar-19  150,685 
U.S. Treasury           
Note 2 yr (Long)  27  5,732,438  5,732,438  Mar-19  35,087 
U.S. Treasury           
Note 2 yr (Short)  26  5,520,125  5,520,125  Mar-19  (34,099) 
U.S. Treasury           
Note 5 yr (Long)  56  6,422,500  6,422,500  Mar-19  96,247 

 

FUTURES         
CONTRACTS  Number      Unrealized 
OUTSTANDING  of  Notional    Expiration   appreciation/ 
at 12/31/18 cont. contracts  amount   Value  date   (depreciation) 
U.S. Treasury         
Note 10 yr (Long)  18 $2,196,281  $2,196,281  Mar-19  $48,339 
U.S. Treasury         
Note 10 yr (Short)  44  5,368,688  5,368,688  Mar-19  (118,339) 
Unrealized appreciation      642,296 
Unrealized (depreciation)      (754,958) 
Total        $(112,662) 

 

 

WRITTEN OPTIONS OUTSTANDING at 12/31/18 (premiums $19,019)   
  Expiration  Notional    Contract   
Counterparty  date/strike price  amount    amount  Value 
Bank of America N.A.         
GBP/USD (Call)  Jun-19/$1.44  1,556,733  GBP  $1,221,350  $5,685 
Citibank, N.A.           
USD/JPY (Put)  Jan-19/JPY 105.00  $2,124,400    $2,124,400  2,717 
Goldman Sachs International         
USD/CNH (Call)  Apr-19/CNH 7.20  1,135,300    1,135,300  2,132 
JPMorgan Chase Bank N.A.         
EUR/NOK (Put)  Mar-19/NOK 9.60  757,799  EUR  661,400  2,192 
Total          $12,726 

 

TBA SALE COMMITMENTS OUTSTANDING at 12/31/18    Principal Settlement   
(proceeds receivable $954,219)          amount date  Value 
Federal National Mortgage Association, 3.00%, 1/1/49      $1,000,000 1/14/19  $975,469 
Total              $975,469 
 
CENTRALLY CLEARED INTEREST RATE SWAP CONTRACTS OUTSTANDING at 12/31/18       
    Upfront          Unrealized 
    premium  Termination  Payments  Payments    appreciation/ 
Notional amount  Value  received (paid)  date  made by fund  received by fund  (depreciation) 
$151,900  $3,593 E  $(3,196)  3/18/49  3 month USD-LIBOR-BBA —  2.95% — Semiannually  $397 
        Quarterly       
32,900  778 E   692  3/18/49  2.95% — Semiannually  3 month USD-LIBOR-  (86) 
          BBA — Quarterly   
286,000  3,352 E   (1,888)  3/18/29  3 month USD-LIBOR-BBA —  2.85% — Semiannually  1,465 
        Quarterly       
748,300  8,772 E   4,908  3/18/29  2.85% — Semiannually  3 month USD-LIBOR-  (3,863) 
          BBA — Quarterly   
1,759,400  18,681 E   (11,848)  3/18/24  3 month USD-LIBOR-BBA —  2.80% — Semiannually  6,834 
        Quarterly       
2,617,400  27,792 E  17,513  3/18/24  2.80% — Semiannually  3 month USD-LIBOR-  (10,279) 
          BBA — Quarterly   
3,446,100  8,377 E   (6,302)  3/18/21  3 month USD-LIBOR-BBA —  2.75% — Semiannually  2,074 
        Quarterly       
4,042,100  9,826 E  7,425  3/18/21  2.75% — Semiannually  3 month USD-LIBOR-  (2,401) 
          BBA — Quarterly   
20,000  129   —  12/31/28  3 month USD-LIBOR-BBA —  2.7845% — Semiannually  129 
        Quarterly       
Total    $7,304          $(5,730) 

 

E Extended effective date.

Putnam VT Global Asset Allocation Fund 27 

 


OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 12/31/18         
    Upfront    Payments  Total return  Unrealized 
Swap counterparty/    premium  Termination  received (paid)  received by  appreciation/ 
Notional amount  Value  received (paid)  date  by fund  or paid by fund  (depreciation) 
Barclays Bank PLC             
$19,367  $19,431  $—  1/12/40  4.50% (1 month USD-  Synthetic MBX Index  $82 
        LIBOR) — Monthly  4.50% 30 year Fannie Mae   
          pools — Monthly   
136,637  137,342   —  1/12/41  5.00% (1 month USD-  Synthetic MBX Index  861 
        LIBOR) — Monthly  5.00% 30 year Fannie Mae   
          pools — Monthly   
36,569  36,590   —  1/12/40  5.00% (1 month USD-  Synthetic MBX Index  64 
        LIBOR) — Monthly  5.00% 30 year Fannie Mae   
          pools — Monthly   
22,016  22,211   —  1/12/38  (6.50%) 1 month USD-  Synthetic MBX Index  (232) 
        LIBOR — Monthly  6.50% 30 year Fannie Mae   
          pools — Monthly   
2,768  2,649   —  1/12/43  3.50% (1 month USD-  Synthetic TRS Index  (97) 
        LIBOR) — Monthly  3.50% 30 year Fannie Mae   
          pools — Monthly   
18,974  18,104   —  1/12/41  4.00% (1 month USD-  Synthetic TRS Index  (709) 
        LIBOR) — Monthly  4.00% 30 year Fannie Mae   
          pools — Monthly   
15,370  14,665   —  1/12/41  4.00% (1 month USD-  Synthetic TRS Index  (575) 
        LIBOR) — Monthly  4.00% 30 year Fannie Mae   
          pools — Monthly   
1,745  1,650   —  1/12/42  4.00% (1 month USD-  Synthetic TRS Index  (81) 
        LIBOR) — Monthly  4.00% 30 year Fannie Mae   
          pools — Monthly   
6,416  6,043   —  1/12/41  (5.00%) 1 month USD-  Synthetic TRS Index  311 
        LIBOR — Monthly  5.00% 30 year Fannie Mae   
          pools — Monthly   
Citibank, N.A.             
6,592,745  6,254,375   —  11/26/19  (3 month USD-LIBOR-  A basket (CGPUTQL2)  (339,592) 
        BBA plus 0.34%) —  of common stocks —   
        Quarterly  Quarterly*   
5,571,499  5,273,265   —  11/26/19  3 month USD-LIBOR-  Russell 1000 Total Return  306,809 
        BBA plus 0.25% —  Index — Quarterly   
        Quarterly     
4,963  4,988   —  1/12/41  5.00% (1 month USD-  Synthetic MBX Index  31 
        LIBOR) — Monthly  5.00% 30 year Fannie Mae   
          pools — Monthly   
Credit Suisse International             
130,163  130,202   —  1/12/41  4.50% (1 month USD-  Synthetic MBX Index  159 
        LIBOR) — Monthly  4.50% 30 year Ginnie Mae II   
          pools — Monthly   
7,301  6,839   —  1/12/45  3.50% (1 month USD-  Synthetic TRS Index  (407) 
        LIBOR) — Monthly  3.50% 30 year Fannie Mae   
          pools — Monthly   
27,136  25,891   —  1/12/41  (4.00%) 1 month USD-  Synthetic TRS Index  1,015 
        LIBOR — Monthly  4.00% 30 year Fannie Mae   
          pools — Monthly   
Goldman Sachs International             
4,309  4,075   —  1/12/42  4.00% (1 month USD-  Synthetic TRS Index  (200) 
        LIBOR) — Monthly  4.00% 30 year Fannie Mae   
          pools — Monthly   
4,309  4,075   —  1/12/42  4.00% (1 month USD-  Synthetic TRS Index  (200) 
        LIBOR) — Monthly  4.00% 30 year Fannie Mae   
          pools — Monthly   

 

28 Putnam VT Global Asset Allocation Fund 

 


OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 12/31/18 cont.       
    Upfront    Payments  Total return  Unrealized 
Swap counterparty/    premium  Termination  received (paid)  received by  appreciation/ 
Notional amount  Value  received (paid)  date  by fund  or paid by fund  (depreciation) 
JPMorgan Securities LLC             
$7,209  $6,878   $—  1/12/41  (4.00%) 1 month USD-  Synthetic TRS Index  $270 
        LIBOR — Monthly  4.00% 30 year Fannie Mae   
          pools — Monthly   
10,364  9,800   —  1/12/42  (4.00%) 1 month USD-  Synthetic TRS Index  480 
        LIBOR — Monthly  4.00% 30 year Fannie Mae   
          pools — Monthly   
Upfront premium received     —    Unrealized appreciation    310,082 
Upfront premium (paid)     —    Unrealized (depreciation)    (342,093) 
Total    $—    Total    $(32,011) 

 

* The 50 largest components, and any individual component greater than 1% of basket value, are shown below.

A BASKET (CGPUTQL2) OF COMMON STOCKS         
        Percentage 
Common stocks  Sector  Shares  Value  value 
JPMorgan Chase & Co.  Financials  1,737  $169,540  2.71% 
Alphabet, Inc. Class A  Communication Services  149  155,950  2.49% 
Starbucks Corp.  Consumer Discretionary  1,845  118,836  1.90% 
Texas Instruments, Inc.  Information Technology  1,192  112,650  1.80% 
Apple, Inc.  Information Technology  713  112,424  1.80% 
Microsoft Corp.  Information Technology  1,104  112,101  1.79% 
Coca-Cola Co. (The)  Consumer Staples  2,315  109,604  1.75% 
TJX Cos., Inc. (The)  Consumer Discretionary  2,447  109,461  1.75% 
Intuit, Inc.  Information Technology  551  108,458  1.73% 
Automatic Data Processing, Inc.  Information Technology  814  106,754  1.71% 
Exelon Corp.  Utilities  2,341  105,557  1.69% 
Mondelez International, Inc. Class A  Consumer Staples  2,621  104,903  1.68% 
Walt Disney Co. (The)  Communication Services  942  103,251  1.65% 
Humana, Inc.  Health Care  358  102,480  1.64% 
American Electric Power Co., Inc.  Utilities  1,365  102,008  1.63% 
Lowe’s Cos., Inc.  Consumer Discretionary  1,096  101,196  1.62% 
Cognizant Technology Solutions Corp. Class A  Information Technology  1,479  93,903  1.50% 
Raytheon Co.  Industrials  607  93,128  1.49% 
Exxon Mobil Corp.  Energy  1,340  91,357  1.46% 
Occidental Petroleum Corp.  Energy  1,488  91,352  1.46% 
Northrop Grumman Corp.  Industrials  363  88,999  1.42% 
Honeywell International, Inc.  Industrials  658  86,895  1.39% 
Johnson & Johnson  Health Care  662  85,387  1.37% 
Omnicom Group, Inc.  Communication Services  1,152  84,378  1.35% 
Centene Corp.  Health Care  731  84,259  1.35% 
American Express Co.  Financials  870  82,938  1.33% 
Norfolk Southern Corp.  Industrials  528  79,014  1.26% 
Pfizer, Inc.  Health Care  1,790  78,139  1.25% 
Citrix Systems, Inc.  Information Technology  742  76,056  1.22% 
Verizon Communications, Inc.  Communication Services  1,346  75,696  1.21% 
Comerica, Inc.  Financials  1,100  75,542  1.21% 
Amazon.com, Inc.  Consumer Discretionary  49  74,061  1.18% 
Cisco Systems, Inc.  Information Technology  1,670  72,365  1.16% 
F5 Networks, Inc.  Information Technology  439  71,200  1.14% 
Fidelity National Information Services, Inc.  Information Technology  693  71,083  1.14% 
Merck & Co., Inc.  Health Care  866  66,197  1.06% 
Allstate Corp. (The)  Financials  799  66,042  1.06% 
VICI Properties, Inc.  Real Estate  3,429  64,393  1.03% 
Baxter International, Inc.  Health Care  961  63,246  1.01% 
AutoZone, Inc.  Consumer Discretionary  74  62,198  0.99% 
Sysco Corp.  Consumer Staples  990  62,040  0.99% 

 

Putnam VT Global Asset Allocation Fund 29 

 


A BASKET (CGPUTQL2) OF COMMON STOCKS cont.         
        Percentage 
Common stocks  Sector  Shares  Value  value 
Marathon Petroleum Corp.  Energy  1,035  $61,067  0.98% 
Ross Stores, Inc.  Consumer Discretionary  723  60,120  0.96% 
AGNC Investment Corp.  Financials  3,324  58,301  0.93% 
Waste Management, Inc.  Industrials  640  56,930  0.91% 
UnitedHealth Group, Inc.  Health Care  216  53,873  0.86% 
NXP Semiconductors NV  Information Technology  731  53,604  0.86% 
Juniper Networks, Inc.  Information Technology  1,981  53,301  0.85% 
Equity Residential Trust  Real Estate  801  52,856  0.85% 
Amgen, Inc.  Health Care  264  51,362  0.82% 

 

OTC CREDIT DEFAULT CONTRACTS OUTSTANDING — PROTECTION SOLD at 12/31/18         
    Upfront           
    premium      Termi-    Unrealized 
Swap counterparty/    received  Notional    nation  Payments  appreciation/ 
Referenced debt*  Rating***  (paid)**  amount  Value  date  received by fund  (depreciation) 
Bank of America N.A.               
CMBX NA BBB–.6 Index  BBB–/P  $273  $4,000  $645  5/11/63  300 bp — Monthly  $(369) 
CMBX NA BBB–.6 Index  BBB–/P  482  8,000  1,290  5/11/63  300 bp — Monthly  (804) 
CMBX NA BBB–.6 Index  BBB–/P  926  15,000  2,420  5/11/63  300 bp — Monthly  (1,485) 
CMBX NA BBB–.6 Index  BBB–/P  912  16,000  2,581  5/11/63  300 bp — Monthly  (1,659) 
Citigroup Global Markets, Inc.               
CMBX NA BB.6 Index  BB/P  2,215  9,000  2,530  5/11/63  500 bp — Monthly  (306) 
CMBX NA BB.7 Index  BB/P  514  4,000  728  1/17/47  500 bp — Monthly  (210) 
Credit Suisse International               
CMBX NA A.6 Index  A/P  158  7,000  305  5/11/63  200 bp — Monthly  (144) 
CMBX NA A.6 Index  A/P  369  19,000  828  5/11/63  200 bp — Monthly  (452) 
CMBX NA A.6 Index  A/P  1,015  20,000  872  5/11/63  200 bp — Monthly  151 
CMBX NA A.7 Index  A-/P  37  1,000  21  1/17/47  200 bp — Monthly  16 
CMBX NA A.7 Index  A-/P  291  7,000  148  1/17/47  200 bp — Monthly  146 
CMBX NA BBB–.6 Index  BBB–/P  435  4,000  645  5/11/63  300 bp — Monthly  (208) 
CMBX NA BBB–.6 Index  BBB–/P  19,994  187,000  30,163  5/11/63  300 bp — Monthly  (10,060) 
CMBX NA BBB–.7 Index  BBB–/P  1,379  21,000  1,787  1/17/47  300 bp — Monthly  (396) 
CMBX NA BBB–.7 Index  BBB–/P  2,371  30,000  2,553  1/17/47  300 bp — Monthly  (164) 
Goldman Sachs International               
CMBX NA A.6 Index  A/P  61  2,000  87  5/11/63  200 bp — Monthly  (25) 
CMBX NA A.6 Index  A/P  263  4,000  174  5/11/63  200 bp — Monthly  90 
CMBX NA A.6 Index  A/P  354  7,000  305  5/11/63  200 bp — Monthly  52 
CMBX NA A.6 Index  A/P  456  9,000  392  5/11/63  200 bp — Monthly  67 
CMBX NA A.6 Index  A/P  468  9,000  392  5/11/63  200 bp — Monthly  79 
CMBX NA A.6 Index  A/P  560  11,000  480  5/11/63  200 bp — Monthly  84 
CMBX NA A.6 Index  A/P  433  14,000  610  5/11/63  200 bp — Monthly  (172) 
CMBX NA A.6 Index  A/P  753  24,000  1,046  5/11/63  200 bp — Monthly  (284) 
CMBX NA A.6 Index  A/P  602  26,000  1,134  5/11/63  200 bp — Monthly  (522) 
CMBX NA A.6 Index  A/P  1,868  31,000  1,352  5/11/63  200 bp — Monthly  529 
CMBX NA A.6 Index  A/P  3,382  55,000  2,398  5/11/63  200 bp — Monthly  1,005 
CMBX NA BBB–.6 Index  BBB–/P  79  1,000  161  5/11/63  300 bp — Monthly  (82) 
CMBX NA BBB–.6 Index  BBB–/P  156  3,000  484  5/11/63  300 bp — Monthly  (326) 
CMBX NA BBB–.6 Index  BBB–/P  325  3,000  484  5/11/63  300 bp — Monthly  (157) 
CMBX NA BBB–.6 Index  BBB–/P  204  3,000  484  5/11/63  300 bp — Monthly  (278) 
CMBX NA BBB–.6 Index  BBB–/P  244  5,000  807  5/11/63  300 bp — Monthly  (560) 
CMBX NA BBB–.6 Index  BBB–/P  248  5,000  807  5/11/63  300 bp — Monthly  (556) 
CMBX NA BBB–.6 Index  BBB–/P  772  7,000  1,129  5/11/63  300 bp — Monthly  (353) 
CMBX NA BBB–.6 Index  BBB–/P  604  7,000  1,129  5/11/63  300 bp — Monthly  (521) 
CMBX NA BBB–.6 Index  BBB–/P  919  19,000  3,065  5/11/63  300 bp — Monthly  (2,134) 
CMBX NA BBB–.6 Index  BBB–/P  2,679  22,000  3,549  5/11/63  300 bp — Monthly  (857) 
CMBX NA BBB–.6 Index  BBB–/P  4,033  43,000  6,936  5/11/63  300 bp — Monthly  (2,878) 

 

30 Putnam VT Global Asset Allocation Fund 

 


OTC CREDIT DEFAULT CONTRACTS OUTSTANDING — PROTECTION SOLD at 12/31/18 cont.         
    Upfront           
    premium      Termi-    Unrealized 
Swap counterparty/    received  Notional    nation  Payments  appreciation/ 
Referenced debt*  Rating***  (paid)**  amount  Value  date  received by fund  (depreciation) 
Goldman Sachs International cont.             
CMBX NA BBB–.6 Index  BBB–/P  $3,608  $48,000  $7,742  5/11/63  300 bp — Monthly  $(4,106) 
CMBX NA BBB–.7 Index  BBB–/P  887  12,000  1,021  1/17/47  300 bp — Monthly  (127) 
JPMorgan Securities LLC               
CMBX NA BB.6 Index  BB/P  636  3,000  843  5/11/63  500 bp — Monthly  (205) 
CMBX NA BB.6 Index  BB/P  635  3,000  843  5/11/63  500 bp — Monthly  (205) 
CMBX NA A.6 Index  A/P  51  1,000  44  5/11/63  200 bp — Monthly  8 
CMBX NA A.6 Index  A/P  86  5,000  218  5/11/63  200 bp — Monthly  (130) 
CMBX NA A.6 Index  A/P  319  7,000  305  5/11/63  200 bp — Monthly  16 
CMBX NA A.6 Index  A/P  406  8,000  349  5/11/63  200 bp — Monthly  60 
CMBX NA A.6 Index  A/P  234  10,000  436  5/11/63  200 bp — Monthly  (199) 
CMBX NA A.6 Index  A/P  234  10,000  436  5/11/63  200 bp — Monthly  (199) 
CMBX NA A.6 Index  A/P  557  17,000  741  5/11/63  200 bp — Monthly  (178) 
CMBX NA A.6 Index  A/P  726  24,000  1,046  5/11/63  200 bp — Monthly  (311) 
CMBX NA A.6 Index  A/P  704  25,000  1,090  5/11/63  200 bp — Monthly  (377) 
CMBX NA A.6 Index  A/P  1,707  29,000  1,264  5/11/63  200 bp — Monthly  453 
CMBX NA A.6 Index  A/P  1,501  33,000  1,439  5/11/63  200 bp — Monthly  75 
CMBX NA A.6 Index  A/P  2,902  60,000  2,616  5/11/63  200 bp — Monthly  309 
CMBX NA A.6 Index  A/P  7,051  117,000  5,101  5/11/63  200 bp — Monthly  1,995 
CMBX NA BBB–.6 Index  BBB–/P  311  2,000  323  5/11/63  300 bp — Monthly  (11) 
CMBX NA BBB–.6 Index  BBB–/P  339  3,000  484  5/11/63  300 bp — Monthly  (143) 
CMBX NA BBB–.6 Index  BBB–/P  423  3,000  484  5/11/63  300 bp — Monthly  (59) 
CMBX NA BBB–.6 Index  BBB–/P  336  3,000  484  5/11/63  300 bp — Monthly  (146) 
CMBX NA BBB–.6 Index  BBB–/P  550  5,000  807  5/11/63  300 bp — Monthly  (253) 
CMBX NA BBB–.6 Index  BBB–/P  567  5,000  807  5/11/63  300 bp — Monthly  (236) 
CMBX NA BBB–.6 Index  BBB–/P  664  7,000  1,129  5/11/63  300 bp — Monthly  (461) 
CMBX NA BBB–.6 Index  BBB–/P  2,111  12,000  1,936  5/11/63  300 bp — Monthly  183 
CMBX NA BBB–.6 Index  BBB–/P  11,137  93,000  15,001  5/11/63  300 bp — Monthly  (3,809) 
CMBX NA BBB–.7 Index  BBB–/P  1,692  14,000  1,191  1/17/47  300 bp — Monthly  509 
Merrill Lynch International               
CMBX NA BBB–.6 Index  BBB–/P  224  2,000  323  5/11/63  300 bp — Monthly  (97) 
Morgan Stanley & Co. International PLC             
CMBX NA BBB–.6 Index  BBB–/P  968  7,000  1,129  5/11/63  300 bp — Monthly  (157) 
CMBX NA A.6 Index  A/P  243  18,000  785  5/11/63  200 bp — Monthly  (534) 
CMBX NA BB.6 Index  BB/P  737  3,000  843  5/11/63  500 bp — Monthly  (104) 
CMBX NA BB.6 Index  BB/P  1,478  6,000  1,687  5/11/63  500 bp — Monthly  (202) 
CMBX NA BBB–.6 Index  BBB–/P  969  8,000  1,290  5/11/63  300 bp — Monthly  (316) 
Upfront premium received    95,827  Unrealized appreciation      5,827 
Upfront premium (paid)     —  Unrealized (depreciation)      (38,527) 
Total    $95,827  Total        $(32,700) 

 

* 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 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 December 31, 2018. Securities rated by Fitch are indicated by “/F.” Securities rated by Putnam are indicated by “/P.” The Putnam rating categories are comparable to the Standard & Poor’s classifications.

Putnam VT Global Asset Allocation Fund 31 

 


OTC CREDIT DEFAULT CONTRACTS OUTSTANDING — PROTECTION PURCHASED at 12/31/18         
  Upfront           
  premium      Termi-  Payments  Unrealized 
Swap counterparty/  received  Notional    nation  (paid)  appreciation/ 
Referenced debt*  (paid)**  amount  Value  date  by fund  (depreciation) 
Citigroup Global Markets, Inc.             
CMBX NA BB.7 Index  $(490)  $3,000  $546  1/17/47  (500 bp) — Monthly  $53 
CMBX NA BB.7 Index  (471)  3,000  546  1/17/47  (500 bp) — Monthly  72 
CMBX NA BB.7 Index  (605)  3,000  546  1/17/47  (500 bp) — Monthly  (62) 
CMBX NA BB.9 Index  (616)  4,000  765  9/17/58  (500 bp) — Monthly  145 
CMBX NA BB.9 Index  (619)  4,000  765  9/17/58  (500 bp) — Monthly  142 
CMBX NA BB.9 Index  (616)  4,000  765  9/17/58  (500 bp) — Monthly  145 
CMBX NA BB.9 Index  (313)  2,000  382  9/17/58  (500 bp) — Monthly  67 
Credit Suisse International             
CMBX NA BB.7 Index  (883)  50,000  14,055  5/11/63  (500 bp) — Monthly  13,124 
CMBX NA BB.7 Index  (2,796)  17,000  3,094  1/17/47  (500 bp) — Monthly  281 
CMBX NA BB.7 Index  (1,291)  7,000  1,274  1/17/47  (500 bp) — Monthly  (24) 
CMBX NA BB.9 Index  (1,117)  7,000  1,338  9/17/58  (500 bp) — Monthly  214 
CMBX NA BB.9 Index  (308)  2,000  382  9/17/58  (500 bp) — Monthly  72 
CMBX NA BB.9 Index  (156)  1,000  191  9/17/58  (500 bp) — Monthly  34 
Goldman Sachs International             
CMBX NA BB.6 Index  (1,739)  17,000  4,779  5/11/63  (500 bp) — Monthly  3,023 
CMBX NA BB.7 Index  (303)  2,000  364  1/17/47  (500 bp) — Monthly  59 
CMBX NA BB.7 Index  (2,234)  11,000  2,002  1/17/47  (500 bp) — Monthly  (242) 
CMBX NA BB.7 Index  (983)  6,000  1,092  1/17/47  (500 bp) — Monthly  103 
JPMorgan Securities LLC             
CMBX NA BB.7 Index  (479)  3,000  546  1/17/47  (500 bp) — Monthly  64 
CMBX NA BB.7 Index  (480)  3,000  546  1/17/47  (500 bp) — Monthly  64 
CMBX NA BB.7 Index  (388)  2,000  364  1/17/47  (500 bp) — Monthly  (26) 
CMBX NA A.7 Index  (169)  8,000  169  1/17/47  (200 bp) — Monthly  (3) 
CMBX NA BB.6 Index  (141)  1,000  281  5/11/63  (500 bp) — Monthly  140 
CMBX NA BB.7 Index  (1,027)  6,000  1,092  1/17/47  (500 bp) — Monthly  59 
CMBX NA BB.7 Index  (626)  4,000  728  1/17/47  (500 bp) — Monthly  98 
CMBX NA BB.7 Index  (720)  4,000  728  1/17/47  (500 bp) — Monthly  4 
CMBX NA BB.7 Index  (584)  3,000  546  1/17/47  (500 bp) — Monthly  (41) 
CMBX NA BB.7 Index  (471)  3,000  546  1/17/47  (500 bp) — Monthly  72 
CMBX NA BB.7 Index  (487)  3,000  546  1/17/47  (500 bp) — Monthly  56 
CMBX NA BB.7 Index  (397)  2,000  364  1/17/47  (500 bp) — Monthly  (35) 
CMBX NA BB.7 Index  (197)  1,000  182  1/17/47  (500 bp) — Monthly  (16) 
CMBX NA BBB–.7 Index  (1,207)  18,000  1,532  1/17/47  (300 bp) — Monthly  314 
CMBX NA BBB–.7 Index  (411)  7,000  596  1/17/47  (300 bp) — Monthly  181 
CMBX NA BBB–.7 Index  (294)  4,000  340  1/17/47  (300 bp) — Monthly  44 
CMBX NA BBB–.7 Index  (294)  4,000  340  1/17/47  (300 bp) — Monthly  44 
CMBX NA BBB–.7 Index  (181)  2,000  170  1/17/47  (300 bp) — Monthly  (12) 
Merrill Lynch International             
CMBX NA BB.7 Index  (1,908)  11,000  2,002  1/17/47  (500 bp) — Monthly  83 
CMBX NA BB.9 Index  (626)  4,000  765  9/17/58  (500 bp) — Monthly  135 
CMBX NA BBB–.7 Index  (328)  4,000  340  1/17/47  (300 bp) — Monthly  10 
Morgan Stanley & Co. International PLC             
CMBX NA BBB–.7 Index  (408)  4,000  340  1/17/47  (300 bp) — Monthly  (69) 
CMBX NA BB.7 Index  (1,207)  6,000  1,092  1/17/47  (500 bp) — Monthly  (120) 
CMBX NA BB.7 Index  (964)  5,000  910  1/17/47  (500 bp) — Monthly  (59) 
CMBX NA BB.7 Index  (1,006)  5,000  910  1/17/47  (500 bp) — Monthly  (103) 
Upfront premium received   —    Unrealized appreciation  18,902 
Upfront premium (paid)  (30,540)    Unrealized (depreciation)  (812) 
Total  $(30,540)    Total      $18,090 

 

* 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.

32 Putnam VT Global Asset Allocation Fund 

 


CENTRALLY CLEARED CREDIT DEFAULT CONTRACTS OUTSTANDING — PROTECTION SOLD at 12/31/18       
    Upfront           
    premium      Termi-  Payments  Unrealized 
    received  Notional    nation  received  appreciation/ 
Referenced debt*  Rating***  (paid)**  amount  Value  date  by fund  (depreciation) 
NA HY Series 31 Index  B+/P  $(42,108)  $586,000  $11,681  12/20/23  500 bp —  $(29,450) 
            Quarterly   
NA IG Series 31 Index  BBB+/P  (40,625)  2,310,000  12,823  12/20/23  100 bp —  (27,033) 
            Quarterly   
Total    $(82,733)          $(56,483) 

 

* 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 December 31, 2018. Securities rated by Fitch are indicated by “/F.” Securities rated by Putnam are indicated by “/P.” The Putnam rating categories are comparable to the Standard & Poor’s classifications.

CENTRALLY CLEARED CREDIT DEFAULT CONTRACTS OUTSTANDING — PROTECTION PURCHASED at 12/31/18     
 
  Upfront           
  premium      Termi-  Payments  Unrealized 
  received  Notional    nation  (paid)  appreciation/ 
Referenced debt*  (paid)**  amount  Value  date  by fund  (depreciation) 
NA HY Series 31 Index  $8,257  $115,000  $2,292  12/20/23  (500 bp) — Quarterly  $5,773 
 
Total  $8,257          $5,773 

 

* 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.

Putnam VT Global Asset Allocation Fund 33 

 


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  $2,120,184  $401,911  $—­ 
Capital goods  4,653,409  130,251  —­ 
Communication services  2,007,584  283,855  —­ 
Conglomerates  134,317  298,756  —­ 
Consumer cyclicals  7,522,372  655,853  —­ 
Consumer staples  6,720,888  75,416  —­ 
Energy  3,521,523  7,862  2,052 
Financials  11,045,721  1,229,480  —­ 
Health care  9,320,102  312,629  —­ 
Technology  14,806,729  305,638  —­ 
Transportation  1,140,055  297,239  —­ 
Utilities and power  2,325,735  69,620  —­ 
Total common stocks  65,318,619  4,068,510  2,052 
Asset-backed securities  —­  509,014  90,000 
Commodity linked notes  —­  1,534,237  —­ 
Convertible bonds and notes  —­  4,038  —­ 
Convertible preferred stocks  —­  16,509  —­ 
Corporate bonds and notes  —­  19,858,052  42 
Foreign government and agency bonds and notes  —­  487,720  —­ 
Mortgage-backed securities  —­  2,154,103  —­ 
Preferred stocks  17,238  —­  —­ 
Purchased options outstanding  —­  37,809  —­ 
Senior loans  —­  186,725  —­ 
U.S. government and agency mortgage obligations  —­  14,416,107  —­ 
Warrants  5  —­  —­ 
Short-term investments  16,270,462  505,895  —­ 
Totals by level  $81,606,324  $43,778,719  $92,094 
 
    Valuation inputs
Other financial instruments:  Level 1  Level 2  Level 3 
Forward currency contracts  $—­  $(112,400)  $—­ 
Futures contracts  (112,662)  —­  —­ 
Written options outstanding  —­  (12,726)  —­ 
TBA sale commitments  —­  (975,469)  —­ 
Interest rate swap contracts  —­  (13,034)  —­ 
Total return swap contracts  —­  (32,011)  —­ 
Credit default contracts  —­  (56,131)  —­ 
Totals by level  $(112,662)  $(1,201,771)  $—­ 

 

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

At the start and close of the reporting period, Level 3 investments in securities represented less than 1% of the fund’s net assets and were not considered a significant portion of the fund’s portfolio.

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

34 Putnam VT Global Asset Allocation Fund 

 


Statement of assets and liabilities
12/31/18

Assets   
Investment in securities, at value, (Note 1):   
Unaffiliated issuers (identified cost $107,572,253)  $109,206,675 
Affiliated issuers (identified cost $16,270,462) (Notes 1 and 5)  16,270,462 
Cash  2,000 
Foreign currency (cost $42,695) (Note 1)  42,226 
Dividends, interest and other receivables  522,051 
Foreign tax reclaim  29,511 
Receivable for shares of the fund sold  28,744 
Receivable for investments sold  1,851,714 
Receivable for sales of TBA securities (Note 1)  955,302 
Receivable for variation margin on futures contracts (Note 1)  96,227 
Unrealized appreciation on forward currency contracts (Note 1)  84,311 
Unrealized appreciation on OTC swap contracts (Note 1)  334,811 
Premium paid on OTC swap contracts (Note 1)  30,540 
Receivable for variation margin on centrally cleared swap contracts (Note 1)  2,007 
Total assets  129,456,581 
 
Liabilities   
Payable for investments purchased  1,548,351 
Payable for purchases of TBA securities (Note 1)  2,103,479 
Payable for shares of the fund repurchased  70,464 
Payable for compensation of Manager (Note 2)  63,493 
Payable for custodian fees (Note 2)  52,030 
Payable for investor servicing fees (Note 2)  15,009 
Payable for Trustee compensation and expenses (Note 2)  120,946 
Payable for administrative services (Note 2)  1,339 
Payable for distribution fees (Note 2)  7,996 
Payable for variation margin on futures contracts (Note 1)  56,525 
Payable for variation margin on centrally cleared swap contracts (Note 1)  751 
Unrealized depreciation on OTC swap contracts (Note 1)  381,432 
Premium received on OTC swap contracts (Note 1)  95,827 
Unrealized depreciation on forward currency contracts (Note 1)  196,711 
Written options outstanding, at value (premiums $19,019) (Note 1)  12,726 
TBA sale commitments, at value (proceeds receivable $954,219) (Note 1)  975,469 
Other accrued expenses  134,046 
Total liabilities  5,836,594 
 
Net assets  $123,619,987 
 
Represented by   
Paid-in capital (Unlimited shares authorized) (Notes 1 and 4)  $117,161,553 
Total distributable earnings (Note 1)  6,458,434 
Total — Representing net assets applicable to capital shares outstanding  $123,619,987 
 
Computation of net asset value Class IA   
Net assets  $86,731,082 
Number of shares outstanding  5,718,392 
Net asset value, offering price and redemption price per share (net assets divided by number of shares outstanding)  $15.17 
 
Computation of net asset value Class IB   
Net assets  $36,888,905 
Number of shares outstanding  2,403,252 
Net asset value, offering price and redemption price per share (net assets divided by number of shares outstanding)  $15.35 

 

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

Putnam VT Global Asset Allocation Fund 35 

 


Statement of operations
Year ended 12/31/18

Investment income   
Interest (including interest income of $411,468 from investments in affiliated issuers) (Note 5)  $2,103,911 
Dividends (net of foreign tax of $49,695)  1,876,624 
Securities lending (net of expenses) (Notes 1 and 5)  3,337 
Total investment income  3,983,872 
 
Expenses   
Compensation of Manager (Note 2)  837,176 
Investor servicing fees (Note 2)  99,047 
Custodian fees (Note 2)  76,308 
Trustee compensation and expenses (Note 2)  7,011 
Distribution fees (Note 2)  106,379 
Administrative services (Note 2)  3,971 
Auditing and tax fees  123,235 
Other  58,088 
Total expenses  1,311,215 
 
Expense reduction (Note 2)  (1,031) 
Net expenses  1,310,184 
 
Net investment income  2,673,688 
 
Realized and unrealized gain (loss)   
Net realized gain (loss) on:   
Securities from unaffiliated issuers (Notes 1 and 3)  5,526,594 
Foreign currency transactions (Note 1)  (8,239) 
Forward currency contracts (Note 1)  (381,887) 
Futures contracts (Note 1)  (1,324,239) 
Swap contracts (Note 1)  51,413 
Written options (Note 1)  94,338 
Total net realized gain  3,957,980 
Change in net unrealized appreciation (depreciation) on:   
Securities from unaffiliated issuers and TBA sale commitments  (15,807,197) 
Assets and liabilities in foreign currencies  (1,705) 
Forward currency contracts  16,969 
Futures contracts  (144,249) 
Swap contracts  (151,846) 
Written options  (24,775) 
Total change in net unrealized depreciation  (16,112,803) 
Net loss on investments  (12,154,823) 
Net decrease in net assets resulting from operations  $(9,481,135) 

 

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

36 Putnam VT Global Asset Allocation Fund 

 


Statement of changes in net assets

  Year ended  Year ended 
  12/31/18  12/31/17 
Increase (decrease) in net assets     
Operations:     
Net investment income  $2,673,688  $2,646,656 
Net realized gain on investments and foreign currency transactions  3,957,980  11,504,010 
Net unrealized appreciation (depreciation) of investments and assets and liabilities in foreign currencies  (16,112,803)  7,214,239 
Net increase (decrease) in net assets resulting from operations  (9,481,135)  21,364,905 
Distributions to shareholders (Note 1):     
From ordinary income     
Net investment income     
Class IA  (2,150,736)  (1,788,913) 
Class IB  (809,885)  (637,380) 
Net realized short-term gain on investments     
Class IA  (2,463,608)  (30,116) 
Class IB  (1,051,162)  (12,498) 
From net realized long-term gain on investments     
Class IA  (5,338,493)  (3,613,966) 
Class IB  (2,277,805)  (1,499,718) 
Increase in capital from settlement payments (Note 4)  —  1,025 
Decrease from capital share transactions (Note 4)  (4,333,820)  (6,804,288) 
Total increase (decrease) in net assets  (27,906,644)  6,979,051 
Net assets:     
Beginning of year  151,526,631  144,547,580 
End of year (Note 1)  $123,619,987  $151,526,631 

 

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 Non-recurring reimbursements Net asset
 value, end
of period		 Total return
at net
asset
 value (%)b,c		 Net assets,
end of
 period (in
 thousands)		 Ratio of
expenses to
 average
 net assets
 (%) b,d		 Ratio of net
 investment
 income
 (loss) to
average net
  assets (%)		  Portfolio
 turnover (%) e
Class IA­                             
12/31/18­  $18.14­  .33­  (1.53)  (1.20)  (.38)  (1.39)  (1.77)  —­  $15.17­  (7.02)  $86,731­  .85­  1.97­  132­ 
12/31/17­  16.55­  .32­  2.18­  2.50­  (.30)  (.61)  (.91)  — f  18.14­  15.67­  104,826­  .86­  1.87­  208­ 
12/31/16­  17.06­  .27­  .81­  1.08­  (.38)  (1.21)  (1.59)  —­  16.55­  6.98­  103,689­  .87g,h   1.66 g,h  384­ 
12/31/15­  19.21­  .27­  (.11)  .16­  (.48)  (1.83)  (2.31)  —­  17.06­  .42­  112,027­  .86­  1.51­  339­ 
12/31/14­  18.77­  .32­  1.40­  1.72­  (.51)  (.77)  (1.28)  —­  19.21­  9.66­  131,554­  .87­  1.73­  339­ 
Class IB­                             
12/31/18­  $18.33­  .29­  (1.54)  (1.25)  (.34)  (1.39)  (1.73)  —­  $15.35­  (7.26)  $36,889­  1.10­  1.71­  132­ 
12/31/17­  16.72­  .28­  2.20­  2.48­  (.26)  (.61)  (.87)  — f  18.33­  15.34­  46,701­  1.11­  1.61­  208­ 
12/31/16­  17.21­  .23­  .82­  1.05­  (.33)  (1.21)  (1.54)  —­  16.72­  6.71­  40,859­  1.12g,h  1.41g,h  384­ 
12/31/15­  19.35­  .23­  (.12)  .11­  (.42)  (1.83)  (2.25)  —­  17.21­  .17­  44,091­  1.11­  1.26­  339­ 
12/31/14­  18.88­  .28­  1.41­  1.69­  (.45)  (.77)  (1.22)  —­  19.35­  9.42­  51,339­  1.12­  1.48­  339­ 

 

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

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

c Total return assumes dividend reinvestment.

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

e Portfolio turnover includes TBA purchase and sale commitments.

f Reflects a non-recurring reimbursement pursuant to a settlement between the Securities and Exchange Commission (the SEC) and Countrywide Financial which amounted to less than $0.01 per share outstanding on November 29, 2017.

g Reflects an involuntary contractual expense limitation in effect during the period. As a result of such limitation, the expenses of each class reflect a reduction of the following amounts:

  Percentage of average 
  net assets 
December 31, 2016  0.02% 

 

h 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.

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

38 Putnam VT Global Asset Allocation Fund 

 


Notes to financial statements 12/31/18

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, 2018 through December 31, 2018.

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. Putnam Management may also use to a significant extent derivatives, such as futures, options, certain foreign currency transactions, warrants and swap contracts, for both hedging and non-hedging purposes.

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 Amended and Restated Agreement and 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 certain 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. The foreign equity 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 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.

Putnam VT Global Asset Allocation Fund 39 

 


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 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 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.

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

40 Putnam VT Global Asset Allocation Fund 

 


margin. There is minimal counterparty risk with respect to centrally cleared interest rate swap contracts due to the clearinghouse guarantee fund and other resources that are available in the event of a clearing member default. Risk of loss may exceed amounts recognized on the Statement of assets and liabilities.

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

Total return swap contracts The fund entered into OTC and/or centrally cleared 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 coun-terparty. OTC and/or centrally cleared total return swap contracts are marked to market daily based upon quotations from an independent pricing service or market maker. Any change is recorded as an unrealized gain or loss on OTC total return swaps. Daily fluctuations in the value of centrally cleared total return 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 received or made are recorded as realized gains or losses. Certain OTC and/or centrally cleared 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 or central clearing risk is the fair value of the contract. This risk may be mitigated for OTC total return swap contracts by having a master netting arrangement between the fund and the counterparty and for centrally cleared total return swap contracts through the daily exchange of variation margin. There is minimal counterparty risk with respect to centrally cleared total return swap contracts due to the clearinghouse guarantee fund and other resources that are available in the event of a clearing member default. Risk of loss may exceed amounts recognized on the Statement of assets and liabilities.

OTC and/or centrally cleared 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, to specific sectors 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 coun-terparty 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, 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.

Putnam VT Global Asset Allocation Fund 41 

 


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 $216,609 on open derivative contracts subject to the Master Agreements. There was no collateral posted by the fund at period end for these 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, net of expenses, 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 had no securities out on loan.

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 $317.5 million unsecured committed line of credit and a $235.5 million unsecured uncommitted line of credit, both provided by State Street. Borrowings may be made for temporary or emergency purposes, including the funding of shareholder redemption requests and trade settlements. Interest is charged to the fund based on the fund’s borrowing at a rate equal to 1.25% plus the higher of (1) the Federal Funds rate and (2) the overnight LIBOR 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 0.21% 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.

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. These differences include temporary and/or permanent differences from losses on wash sale transactions, from foreign currency gains and losses, from nontaxable dividends, from income on swap contracts, from interest-only securities and from a redesignation of taxable distributions. 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. At the close of the reporting period, the fund reclassified $351,719 to decrease undistributed net investment income, $644 to increase paid-in capital and $351,075 to increase accumulated net realized gain.

Tax cost of investments includes adjustments to net unrealized appreciation (depreciation) which may not necessarily be final tax cost basis adjustments, but closely approximate the tax basis unrealized gains and losses that may be realized and distributed to shareholders. The tax basis components of distributable earnings and the federal tax cost as of the close of the reporting period were as follows:

Unrealized appreciation   $8,537,581 
Unrealized depreciation   (7,876,970) 
Net unrealized appreciation   660,611 
Undistributed ordinary income   1,913,871 
Undistributed long-term gain   3,894,941 
Cost for federal income tax purposes   $123,502,094 

 

For the fiscal year ended December 31, 2017, the fund had undistributed net investment income of $2,750,912.

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 41.8% 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 mutual 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 0.591% of the fund’s average net assets.

Putnam Management has contractually agreed, through April 30, 2020, to waive fees and/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 plan, on a fiscal year-to-date basis to an annual rate of 0.20% of the fund’s average net assets over such fiscal year-to-date period. During the reporting period, the fund’s expenses were not reduced as a result of this limit.

Putnam Investments Limited (PIL), an affiliate of Putnam Management, is authorized by the Trustees to manage a separate portion of the assets of the fund as determined by Putnam Management from time to time. PIL did not manage

42 Putnam VT Global Asset Allocation Fund 

 


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  $69,251 
Class IB  29,796 
Total  $99,047 

 

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 $539 under the expense offset arrangements and by $492 under the brokerage/service arrangements.

Each Independent Trustee of the fund receives an annual Trustee fee, of which $100 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. The expenses related to distribution fees during the reporting period are included in Distribution fees in the Statement of operations.

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  Proceeds 
  purchases  from sales 
Investments in securities, including     
TBA commitments     
(Long-term)  $161,213,042  $174,406,087 
U.S. government securities     
(Long-term)  —  — 
Total  $161,213,042  $174,406,087 

 

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 of long-term securities 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.

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   
  Year ended 12/31/18  Year ended 12/31/17  Year ended 12/31/18  Year ended 12/31/17 
  Shares  Amount  Shares  Amount  Shares  Amount  Shares  Amount 
Shares sold  87,202  $1,505,186  87,499  $1,489,223  206,459  $3,573,585  408,541  $7,090,944 
Shares issued in connection with                 
reinvestment of distributions  627,543  9,952,837  332,904  5,432,995  257,391  4,138,852  130,121  2,149,596 
  714,745  11,458,023  420,403  6,922,218  463,850  7,712,437  538,662  9,240,540 
Shares repurchased  (774,594)  (13,022,557)  (906,555)  (15,464,493)  (607,821)  (10,481,723)  (435,552)  (7,502,553) 
Net increase (decrease)  (59,849)  $(1,564,534)  (486,152)  $(8,542,275)  (143,971)  $(2,769,286)  103,110  $1,737,987 

 

Putnam VT Global Asset Allocation Fund 43 

 


Note 5 — Affiliated transactions

Transactions during the reporting period with any company which is under common ownership or control were as follows:

          Shares outstanding 
  Fair value as of        and fair value as of 
Name of affiliate  12/31/17  Purchase cost  Sale proceeds  Investment income  12/31/18 
Short-term investments           
Putnam Cash Collateral Pool, LLC*  $1,312,325  $6,857,899  $8,170,224  $9,441  $— 
Putnam Short Term Investment           
Fund**  21,843,002  29,400,907  34,973,447  411,468  16,270,462 
Total Short-term investments  $23,155,327  $36,258,806  $43,143,671  $420,909  $16,270,462 

 

*No management fees are charged to Putnam Cash Collateral Pool, LLC (Note 1). Investment income shown is included in securities lending income on the Statement of operations. There were no realized or unrealized gains or losses during the period.

**Management fees charged to Putnam Short Term Investment Fund have been waived by Putnam Management. There were no realized or unrealized gains or losses during the period.

Note 6 — 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 7 — 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 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 currency options (contract amount)  $2,200,000 
Written currency options (contract amount)  $1,900,000 
Written swap option contracts (contract amount)  $17,000 
Futures contracts (number of contracts)  300 
Forward currency contracts (contract amount)  $35,200,000 
Centrally cleared interest rate swap contracts (notional)  $14,300,000 
OTC total return swap contracts (notional)  $14,300,000 
OTC credit default contracts (notional)  $1,600,000 
Centrally cleared credit default contracts (notional)  $5,900,000 
Warrants (number of warrants)  200 

 

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  Statement of assets and    Statement of assets and   
instruments under ASC 815  liabilities location  Fair value  liabilities location  Fair value 
      Payables,   
  Receivables, Net    Net assets —   
  assets — Unrealized    Unrealized   
Credit contracts  appreciation  $74,880*  depreciation  $131,011* 
  Investments,       
Foreign exchange contracts  Receivables  122,120  Payables  209,437 
  Investments,    Payables,   
  Receivables, Net    Net assets —   
  assets — Unrealized    Unrealized   
Equity contracts  appreciation  565,955*  depreciation  942,112* 
      Payables,   
  Receivables, Net    Net assets —   
  assets — Unrealized    Unrealized   
Interest rate contracts  appreciation  420,561*  depreciation  202,106* 
Total    $1,183,516    $1,484,666 

 

*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 (Note 1):

Amount of realized gain or (loss) on derivatives recognized in net gain or (loss) on investments       
        Forward     
Derivatives not accounted for as hedging        currency     
instruments under ASC 815  Warrants  Options  Futures  contracts  Swaps  Total 
Credit contracts  $—  $—  $—  $—  $4,762  $4,762 
Foreign exchange contracts  —  (33,871)  —  (381,887)  —  $(415,758) 
Equity contracts  —  —  (758,937)  —  106,819  $(652,118) 
Interest rate contracts  —  36,377  (565,302)  —  (60,168)  $(589,093) 
Total  $—  $2,506  $(1,324,239)  $(381,887)  $51,413  $(1,652,207) 

 

Change in unrealized appreciation or (depreciation) on derivatives recognized in net gain or (loss) on investments     
        Forward     
Derivatives not accounted for as hedging        currency     
instruments under ASC 815  Warrants  Options  Futures  contracts  Swaps  Total 
Credit contracts  $—  $—  $—  $—  $(65,906)  $(65,906) 
Foreign exchange contracts  —  1,986  —  16,969  —  $18,955 
Equity contracts  (168)  —  (425,734)  —  (82,059)  $(507,961) 
Interest rate contracts  —  (36,383)  281,485  —  (3,881)  $241,221 
Total  $(168)  $(34,397)  $(144,249)  $16,969  $(151,846)  $(313,691) 

 

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.		 Citigroup
Global
Markets, Inc.		 Credit
Suisse International		 Goldman
Sachs International		 HSBC Bank
USA, National Association		 JPMorgan
Chase
Bank N.A.		 JPMorgan Securities
LLC		 Merrill
 Lynch International		 Merrill
 Lynch,
 Pierce,
 Fenner &
 Smith, Inc.		 Morgan
Stanley &
 Co.
International
 PLC		 NatWest
Markets PLC		 State
Street
Bank and
Trust Co.		 UBS AG WestPac Banking
 Corp.		 Total
Assets:                                     
Centrally cleared interest rate                                     
swap contracts§  $—  $—  $851  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $851 
OTC Total return                                     
swap contracts*#  —  1,318  —  306,840  —  1,174  —  —  —  750  —  —  —  —  —  —  —  310,082 
OTC Credit default contracts —                                     
protection sold*#  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
OTC Credit default contracts —                                     
protection purchased*#  —  —  —  —  4,292  20,252  8,202  —  —  9,560  3,090  —  3,234  —  —  —  —  48,630 
Centrally cleared credit                                     
default contracts§  —  —  1,156  —  —  —  —  —  —  —  —  —  —  —  —  —  —  1,156 
Futures contracts§  —  —  —  —  —  —  —  —  —  —  —  96,227  —  —  —  —  —  96,227 
Forward currency contracts#  5,060  139  —  13,571  —  —  16,842  4,861  16,513  —  —  —  —  2,831  13,167  4,423  6,904  84,311 
Purchased options**#  17,288  —  —  10,469  —  —  6,009  —  4,043  —  —  —  —  —  —  —  —  37,809 
Total Assets  $22,348  $1,457  $2,007  $330,880  $4,292  $21,426  $31,053  $4,861  $20,556  $10,310  $3,090  $96,227  $3,234  $2,831  $13,167  $4,423  $6,904  $579,066 
Liabilities:                                     
Centrally cleared interest rate                                     
swap contracts§  —  —  751  —  —  —  —  —  —  —  —  —  —  —  —  —  —  751 
OTC Total return                                     
swap contracts*#  —  1,694  —  339,592  —  407  400  —  —  —  —  —  —  —  —  —  —  342,093 
OTC Credit default contracts —                                     
protection sold*#  6,910  —  —  —  3,245  37,160  35,990  —  —  39,193  321  —  5,708  —  —  —  —  128,527 
OTC Credit default contracts —                                     
protection purchased*#  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Centrally cleared credit                                     
default contracts§  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Futures contracts§  —  —  —  —  —  —  —  —  —  —  —  56,525  —  —  —  —  —  56,525 
Forward currency contracts#  23,949  8,912  —  6,093  —  26,817  52,899  25,489  8,794  —  —  —  —  12,091  21,339  7,422  2,906  196,711 
Written options #  5,685  —  —  2,717  —  —  2,132  —  2,192  —  —  —  —  —  —  —  —  12,726 
Total Liabilities  $36,544  $10,606  $751  $348,402  $3,245  $64,384  $91,421  $25,489  $10,986  $39,193  $321  $56,525  $5,708  $12,091  $21,339  $7,422  $2,906  $737,333 
Total Financial and Derivative                                     
Net Assets  $(14,196)  $(9,149)  $1,256  $(17,522)  $1,047  $(42,958)  $(60,368)  $(20,628)  $9,570  $(28,883)  $2,769  $39,702  $(2,474)  $(9,260)  $(8,172)  $(2,999)  $3,998  $(158,267) 
Total collateral received                                     
(pledged)†##  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—   
Net amount  $(14,196)  $(9,149)  $1,256  $(17,522)  $1,047  $(42,958)  $(60,368)  $(20,628)  $9,570  $(28,883)  $2,769  $39,702  $(2,474)  $(9,260)  $(8,172)  $(2,999)  $3,998   
Controlled collateral received                                     
(including TBA commitments)**  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $— 
Uncontrolled collateral received  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $— 
Collateral (pledged) (including                                     
TBA commitments)**  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $— 

 

*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. Collateral pledged for initial margin on futures contracts and centrally cleared swap contracts, which is not included in the table above, amounted to $407,981 and $97,837, respectively.

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

 


Note 10 — New accounting pronouncements

In March 2017, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2017–08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310–20): Premium Amortization on Purchased Callable Debt Securities. The amendments in the ASU shorten the amortization period for certain callable debt securities held at a premium, to be amortized to the earliest call date. The ASU is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018. Management is currently evaluating the impact, if any, of applying this provision.

Federal tax information (Unaudited)

Pursuant to §852 of the Internal Revenue Code, as amended, the fund hereby designates $4,376,561 as a capital gain dividend with respect to the taxable year ended December 31, 2018, or, if subsequently determined to be different, the net capital gain of such year.

The fund designated 19.29% of ordinary income distributions as qualifying for the dividends received deduction for corporations.

48 Putnam VT Global Asset Allocation Fund 

 



  Putnam VT Global Asset Allocation Fund 49 

 



*Mr. Reynolds is an “interested person” (as defined in the Investment Company Act of 1940) of the fund and Putnam Investments. He is President and Chief Executive Officer of Putnam Investments, as well as the President of your fund and each of the other Putnam funds.

The address of each Trustee is 100 Federal Street, Boston, MA 02110.

As of December 31, 2018, there were 99 Putnam funds. All Trustees serve as Trustees of all Putnam funds.

Each Trustee serves for an indefinite term, until his or her resignation, retirement at age 75, removal, or death.

Officers

In addition to Robert L. Reynolds, the other officers of the fund are shown below:

Jonathan S. Horwitz (Born 1955)  Michael J. Higgins (Born 1976)  Mark C. Trenchard (Born 1962) 
Executive Vice President, Principal Executive  Vice President, Treasurer, and Clerk  Vice President and BSA Compliance Officer 
Officer, and Compliance Liaison  Since 2010  Since 2002 
Since 2004    Director of Operational Compliance, 
  Janet C. Smith (Born 1965)  Putnam Investments and Putnam 
Robert T. Burns (Born 1961)  Vice President, Principal Financial Officer,  Retail Management 
Vice President and Chief Legal Officer  Principal Accounting Officer, and Assistant   
Since 2011  Treasurer  Nancy E. Florek (Born 1957) 
General Counsel, Putnam Investments, Putnam  Since 2007  Vice President, Director of Proxy Voting and 
Management, and Putnam Retail Management  Head of Fund Administration Services,  Corporate Governance, Assistant Clerk, and 
  Putnam Investments and Putnam Management  Assistant Treasurer 
James F. Clark (Born 1974)    Since 2000 
Vice President and Chief Compliance Officer  Susan G. Malloy (Born 1957)   
Since 2016  Vice President and Assistant Treasurer  Denere P. Poulack (Born 1968) 
Chief Compliance Officer, Putnam Investments  Since 2007  Assistant Vice President, Assistant Clerk, 
and Putnam Management  Head of Accounting, Middle Office, & Control  and Assistant Treasurer 
  Services, Putnam Investments and  Since 2004 
  Putnam Management   

 

The principal occupations of the officers for the past five years have been with the employers as shown above, although in some cases they have held different positions with such employers. The address of each officer is 100 Federal Street, Boston, MA 02110.

50 Putnam VT Global Asset Allocation Fund 

 


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Putnam VT Global Asset Allocation Fund 51 

 


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52 Putnam VT Global Asset Allocation Fund 

 


Other important information

Proxy voting

Putnam is committed to managing our mutual funds in the best interests of our shareholders. The Putnam funds’ proxy voting guidelines and procedures, as well as information regarding how your fund voted proxies relating to portfolio securities during the 12-month period ended June 30, 2018, 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.

Fund information     
 
Investment Manager  Investor Servicing Agent  Trustees 
Putnam Investment Management, LLC  Putnam Investments  Kenneth R. Leibler, Chair 
100 Federal Street  Mailing address:  Liaquat Ahamed 
Boston, MA 02110  P.O. Box 219697  Ravi Akhoury 
  Kansas City, MO 64121-9697  Barbara M. Baumann 
Investment Sub-Advisors  1-800-225-1581 Katinka Domotorffy 
Putnam Investments Limited    Catharine Bond Hill 
16 St James’s Street  Custodian  Paul L. Joskow 
London, England SW1A 1ER  State Street Bank and Trust Company  Robert E. Patterson 
    George Putnam, III
The Putnam Advisory Company, LLC  Legal Counsel  Robert L. Reynolds
100 Federal Street  Ropes & Gray LLP  Manoj P. Singh 
Boston, MA 02110  
  Independent Registered   
Marketing Services  Public Accounting Firm   
Putnam Retail Management  PricewaterhouseCoopers LLP   
100 Federal Street     
Boston, MA 02110     

 

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.  VTAN062  315008  2/19 

 

Item 2. Code of Ethics:
(a) The fund’s principal executive, financial and accounting officers are employees of Putnam Investment Management, LLC, the Fund’s investment manager. As such they are subject to a comprehensive Code of Ethics adopted and administered by Putnam Investments which is designed to protect the interests of the firm and its clients. The Fund has adopted a Code of Ethics which incorporates the Code of Ethics of Putnam Investments with respect to all of its officers and Trustees who are employees of Putnam Investment Management, LLC. For this reason, the Fund has not adopted a separate code of ethics governing its principal executive, financial and accounting officers.

(c) In February 2018, the Code of Ethics of Putnam Investments was amended. The key changes to the Code of Ethics are as follows: (i) Prohibition of investing in public coin offerings or token offerings, (ii) Removal of monetary fines as available sanctions for violations of the Code of Ethics, and (iii) Expanded definition of “Immediate Family Member”.

Item 3. Audit Committee Financial Expert:
The Funds’ Audit, Compliance and Distributions Committee is comprised solely of Trustees who are “independent” (as such term has been defined by the Securities and Exchange Commission (“SEC”) in regulations implementing Section 407 of the Sarbanes-Oxley Act (the “Regulations”)). The Trustees believe that each of the members of the Audit, Compliance and Distributions Committee also possess a combination of knowledge and experience with respect to financial accounting matters, as well as other attributes, that qualify them for service on the Committee. In addition, the Trustees have determined that each of Mr. Patterson, Ms. Baumann and Mr. Singh qualifies as an “audit committee financial expert” (as such term has been defined by the Regulations) based on their review of his or her pertinent experience and education. The SEC has stated, and the funds’ amended and restated agreement and Declaration of Trust provides, that the designation or identification of a person as an audit committee financial expert pursuant to this Item 3 of Form N-CSR does not impose on such person any duties, obligations or liability that are greater than the duties, obligations and liability imposed on such person as a member of the Audit, Compliance and Distribution Committee and the Board of Trustees in the absence of such designation or identification.

Item 4. Principal Accountant Fees and Services:
The following table presents fees billed in each of the last two fiscal years for services rendered to the fund by the fund’s independent auditor:


Fiscal year ended Audit Fees Audit-Related Fees Tax Fees All Other Fees
December 31, 2018 $102,085 $370* $17,286 $ —
December 31, 2017 $108,307 $ — $19,727 $205


*   Fees billed to the fund for services relating to a review of certain trading activity that was the subject of a settlement between Putnam Investment Management, LLC and the Securities and Exchange Commission.
For the fiscal years ended December 31, 2018 and December 31, 2017, the fund’s independent auditor billed aggregate non-audit fees in the amounts of $634,138 and $402,462 respectively, to the fund, Putnam Management and any entity controlling, controlled by or under common control with Putnam Management that provides ongoing services to the fund.

Audit Fees represent fees billed for the fund’s last two fiscal years relating to the audit and review of the financial statements included in annual reports and registration statements, and other services that are normally provided in connection with statutory and regulatory filings or engagements.

Audit-Related Fees represent fees billed in the fund’s last two fiscal years for services traditionally performed by the fund’s auditor, including accounting consultation for proposed transactions or concerning financial accounting and reporting standards and other audit or attest services not required by statute or regulation.

Tax Fees represent fees billed in the fund’s last two fiscal years for tax compliance, tax planning and tax advice services. Tax planning and tax advice services include assistance with tax audits, employee benefit plans and requests for rulings or technical advice from taxing authorities.

All Other Fees represent fees billed for services relating to an analysis of fund profitability

Pre-Approval Policies of the Audit, Compliance and Distributions Committee. The Audit, Compliance and Distributions Committee of the Putnam funds has determined that, as a matter of policy, all work performed for the funds by the funds’ independent auditors will be pre-approved by the Committee itself and thus will generally not be subject to pre-approval procedures.

The Audit, Compliance and Distributions Committee also has adopted a policy to pre-approve the engagement by Putnam Management and certain of its affiliates of the funds’ independent auditors, even in circumstances where pre-approval is not required by applicable law. Any such requests by Putnam Management or certain of its affiliates are typically submitted in writing to the Committee and explain, among other things, the nature of the proposed engagement, the estimated fees, and why this work should be performed by that particular audit firm as opposed to another one. In reviewing such requests, the Committee considers, among other things, whether the provision of such services by the audit firm are compatible with the independence of the audit firm.

The following table presents fees billed by the fund’s independent auditor for services required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.


Fiscal year ended Audit-Related Fees Tax Fees All Other Fees Total Non-Audit Fees
December 31, 2018 $ — $616,482 $ — $ —
December 31, 2017 $ — $382,530 $ — $ —

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) The Code of Ethics of The Putnam Funds, which incorporates the Code of Ethics of Putnam Investments, is filed herewith.
(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.

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

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

Date: February 28, 2019
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: February 28, 2019
By (Signature and Title):
/s/ Janet C. Smith
Janet C. Smith
Principal Financial Officer

Date: February 28, 2019