Putnam Variable Trust
02/25/2026 | Press release | Distributed by Public on 02/25/2026 12:47
Annual Report by Investment Company (Form N-CSR)
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
Putnam Variable Trust
(Exact name of registrant as specified in charter)
100 Federal Street, Boston, Massachusetts 02110
(Address of principal executive offices) (Zip code)
Stephen Tate, Vice President
100 Federal Street,
Boston, Massachusetts 02110
Copy to:
Bryan Chegwidden, Esq.
Ropes & Gray LLP
1211 Avenue of the Americas
New York, NY 10036
James E. Thomas, Esq.
Ropes & Gray LLP
800 Boylston Street
Boston, Massachusetts 02199
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 292-1000
Date of fiscal year end: December 31
Date of reporting period: December 31, 2025
| ITEM 1. | REPORT TO STOCKHOLDERS. |
(a) The Report to Shareholders is filed herewith
|
Putnam VT Mortgage Securities Fund
|
||
|
Class IA
|
||
|
Annual Shareholder Report | December 31, 2025
|
||
This annual shareholder reportcontains important information about Putnam VT Mortgage Securities Fund for the period January 1, 2025, to December 31, 2025.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) 225-1581.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) 225-1581.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)
|
Class Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment*
|
|
Class IA1
|
$52
|
0.50%
|
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
| 1 | Does not reflect expenses incurred from investing through variable annuity or variable life insurance products. |
HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?
For the twelve months ended December 31, 2025, Class IA shares of Putnam VT Mortgage Securities Fund returned 9.39%. The Fund compares its performance to the Bloomberg U.S. MBS Index and the Putnam VT Mortgage Securities Linked Benchmark†, which both returned 8.58% for the same period.
PERFORMANCE HIGHLIGHTS
|
Top contributors to performance:
|
|
|
↑
|
Commercial mortgage-backed securities (CMBS) cash bonds were the largest contributor to relative returns. Spreads tightened notably during the year as commercial real estate fundamentals and outlook improved. Availability of financing for commercial borrowers has improved as floating-rate private label CMBS (Single Asset Single Borrower 'SASB') and private credit have helped fill the void left by regional banks, commercial real estate fundamentals have shown signs of improvement, and rising transaction volumes have been providing more price transparency.
|
|
↑
|
Residential mortgage credit, particularly our allocation to credit risk transfer (CRT) securities. Overall, CRT technicals continue to be supportive, consumer balance sheets remain strong, and delinquency statuses across subsectors, including CRT and non-qualified mortgages (non-QM) remain low.
|
|
↑
|
Agency interest-only (IO) holdings were another contributor. Prepayment speeds remain subdued and remain well below the normal historical range. Seasoned IO bonds are still well "out-of-the-money" and thus benefited from stable prepayment speeds and a strong carry profile.
|
|
Top detractors from performance:
|
|
|
↓
|
Mortgage basis (the difference between mortgage interest rates and treasury yields) positioning was a detractor during the period.
|
Use of derivatives and the impact on performance:
The Fund utilized interest-rate swaps to hedge term structure risk and for yield curve positioning. Options were used to hedge duration and convexity, isolate prepayment risk, and manage downside risks. Commercial real estate derivatives were used to gain exposure to the CMBS sector and hedge credit and market risks. Futures were used for hedging treasury term structure risk and for yield curve positioning. In aggregate, these derivatives detracted from performance.
| Putnam VT Mortgage Securities Fund | PAGE 1 | 38988-ATSIA-0226 |
HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?
The Fund's past performance is not necessarily an indication of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
VALUE OF A $10,000 INVESTMENT - Class IA 12/31/2015 - 12/31/2025
AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended December 31, 2025
|
1 Year
|
5 Year
|
10 Year
|
|
|
Class IA
|
9.39
|
1.07
|
1.87
|
|
Bloomberg U.S. Aggregate Index
|
7.30
|
-0.36
|
2.01
|
|
Bloomberg U.S. MBS Index
|
8.58
|
0.15
|
1.59
|
|
Putnam VT Mortgage Securities Linked Benchmark†
|
8.58
|
0.15
|
1.48
|
| † | The Putnam VT Mortgage Securities Linked Benchmark represents the performance of the Bloomberg GNMA Index through April 18, 2018, and the performance of the Bloomberg U.S. MBS Index thereafter. |
Performance does not reflect expenses incurred from investing through variable annuity or variable life insurance products, which if reflected, would reduce performance of the Fund.
Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.
Effective April 30, 2018, the Fund adopted its current investment strategy.
Important data provider notices and terms available at www.franklintempletondatasources.com.
KEY FUND STATISTICS (as of December 31, 2025)
|
Total Net Assets
|
$25,745,019
|
|
Total Number of Portfolio Holdings (excludes derivatives, except purchased options, if any)
|
313
|
|
Total Management Fee Paid
|
$0
|
|
Portfolio Turnover Rate
|
871%
|
| Putnam VT Mortgage Securities Fund | PAGE 2 | 38988-ATSIA-0226 |
WHAT DID THE FUND INVEST IN? (as of December 31, 2025)
Portfolio Composition*(% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
HOW HAS THE FUND CHANGED?
Effective December 31, 2025, the portfolio managers for the Fund are Neil Dhruv, Jatin Misra, CFA, and Michael V. Salm.
This is a summary of certain changes to the Fund since January 1, 2025. For more complete information, you may review the Fund's current prospectus and any applicable supplements and the Fund's next prospectus, which we expect to be available by May 1, 2026, at https://www.franklintempleton.com/regulatory-fund-documentsor upon request at (800) 225-1581or
[email protected].
[email protected].
|
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
|
|
|
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
|
|
|
• prospectus • proxy voting information • financial information • holdings • tax information
|
| Putnam VT Mortgage Securities Fund | PAGE 3 | 38988-ATSIA-0226 |
|
Putnam VT Mortgage Securities Fund
|
||
|
Class IB
|
||
|
Annual Shareholder Report | December 31, 2025
|
||
This annual shareholder reportcontains important information about Putnam VT Mortgage Securities Fund for the period January 1, 2025, to December 31, 2025.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) 225-1581.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) 225-1581.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)
|
Class Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment*
|
|
Class IB1
|
$78
|
0.75%
|
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
| 1 | Does not reflect expenses incurred from investing through variable annuity or variable life insurance products. |
HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?
For the twelve months ended December 31, 2025, Class IB shares of Putnam VT Mortgage Securities Fund returned 9.09%. The Fund compares its performance to the Bloomberg U.S. MBS Index and the Putnam VT Mortgage Securities Linked Benchmark†, which both returned 8.58% for the same period.
PERFORMANCE HIGHLIGHTS
|
Top contributors to performance:
|
|
|
↑
|
Commercial mortgage-backed securities (CMBS) cash bonds were the largest contributor to relative returns. Spreads tightened notably during the year as commercial real estate fundamentals and outlook improved. Availability of financing for commercial borrowers has improved as floating-rate private label CMBS (Single Asset Single Borrower 'SASB') and private credit have helped fill the void left by regional banks, commercial real estate fundamentals have shown signs of improvement, and rising transaction volumes have been providing more price transparency.
|
|
↑
|
Residential mortgage credit, particularly our allocation to credit risk transfer (CRT) securities. Overall, CRT technicals continue to be supportive, consumer balance sheets remain strong, and delinquency statuses across subsectors, including CRT and non-qualified mortgages (non-QM) remain low.
|
|
↑
|
Agency interest-only (IO) holdings were another contributor. Prepayment speeds remain subdued and remain well below the normal historical range. Seasoned IO bonds are still well "out-of-the-money" and thus benefited from stable prepayment speeds and a strong carry profile.
|
|
Top detractors from performance:
|
|
|
↓
|
Mortgage basis (the difference between mortgage interest rates and treasury yields) positioning was a detractor during the period.
|
Use of derivatives and the impact on performance:
The Fund utilized interest-rate swaps to hedge term structure risk and for yield curve positioning. Options were used to hedge duration and convexity, isolate prepayment risk, and manage downside risks. Commercial real estate derivatives were used to gain exposure to the CMBS sector and hedge credit and market risks. Futures were used for hedging treasury term structure risk and for yield curve positioning. In aggregate, these derivatives detracted from performance.
| Putnam VT Mortgage Securities Fund | PAGE 1 | 38988-ATSIB-0226 |
HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?
The Fund's past performance is not necessarily an indication of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
VALUE OF A $10,000 INVESTMENT - Class IB 12/31/2015 - 12/31/2025
AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended December 31, 2025
|
1 Year
|
5 Year
|
10 Year
|
|
|
Class IB
|
9.09
|
0.83
|
1.62
|
|
Bloomberg U.S. Aggregate Index
|
7.30
|
-0.36
|
2.01
|
|
Bloomberg U.S. MBS Index
|
8.58
|
0.15
|
1.59
|
|
Putnam VT Mortgage Securities Linked Benchmark†
|
8.58
|
0.15
|
1.48
|
| † | The Putnam VT Mortgage Securities Linked Benchmark represents the performance of the Bloomberg GNMA Index through April 18, 2018, and the performance of the Bloomberg U.S. MBS Index thereafter. |
Performance does not reflect expenses incurred from investing through variable annuity or variable life insurance products, which if reflected, would reduce performance of the Fund.
Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.
Effective April 30, 2018, the Fund adopted its current investment strategy.
Important data provider notices and terms available at www.franklintempletondatasources.com.
KEY FUND STATISTICS (as of December 31, 2025)
|
Total Net Assets
|
$25,745,019
|
|
Total Number of Portfolio Holdings (excludes derivatives, except purchased options, if any)
|
313
|
|
Total Management Fee Paid
|
$0
|
|
Portfolio Turnover Rate
|
871%
|
| Putnam VT Mortgage Securities Fund | PAGE 2 | 38988-ATSIB-0226 |
WHAT DID THE FUND INVEST IN? (as of December 31, 2025)
Portfolio Composition*(% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
HOW HAS THE FUND CHANGED?
Effective December 31, 2025, the portfolio managers for the Fund are Neil Dhruv, Jatin Misra, CFA, and Michael V. Salm.
This is a summary of certain changes to the Fund since January 1, 2025. For more complete information, you may review the Fund's current prospectus and any applicable supplements and the Fund's next prospectus, which we expect to be available by May 1, 2026, at https://www.franklintempleton.com/regulatory-fund-documentsor upon request at (800) 225-1581or
[email protected].
[email protected].
|
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
|
|
|
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
|
|
|
• prospectus • proxy voting information • financial information • holdings • tax information
|
| Putnam VT Mortgage Securities Fund | PAGE 3 | 38988-ATSIB-0226 |
(b) Not applicable
| ITEM 2. | CODE OF ETHICS. |
(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.
(c) N/A
(d) N/A
(f) Pursuant to Item 19(a) (1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.
| ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
The Board of Trustees of the Registrant has determined that Gregory G. McGreevey and Manoj P. Singh possess the technical attributes identified in Item 3 to Form N-CSR to qualify as "audit committee financial experts," and has designated Gregory G. McGreevey and Manoj P. Singh as the Audit Committee's financial experts. Gregory G. McGreevey and Manoj P. Singh are "independent" Trustees pursuant to paragraph (a)(2) of Item 3 to Form N-CSR.
Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an "expert" for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.
| ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
(a) Audit Fees. The aggregate fees billed in the last two fiscal years ending December 31, 2024 and December 31, 2025 (the "Reporting Periods") for professional services rendered by the Registrant's principal accountant (the "Auditor") for the audit of the Registrant's annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $1,105,519 in December 31, 2024 and $1,138,734 in December 31, 2025.
(b) Audit-Related Fees. The aggregate fees billed in the Reporting Periods for assurance and related services by the Auditor that are reasonably related to the performance of the Registrant's financial statements were $0 in December 31, 2024 and $0 in December 31, 2025.
(c) Tax Fees. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice and tax planning ("Tax Services") were $140,446 in December 31, 2024 and $195,135 in December 31, 2025. These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, and (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held.
There were no fees billed for tax services by the Registrant's investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant ("Service Affiliates") during the Reporting Periods that required pre-approval by the Audit Committee.
(d) All Other Fees. The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor to the Registrant, other than the services reported in paragraphs (a) through (c) of this item, were $0 in December 31, 2024 and $0 in December 31, 2025.
There were no other non-audit services rendered by the Auditor to the Service Affiliates requiring pre-approval by the Audit Committee in the Reporting Periods.
(e) Audit Committee's pre-approval policies and procedures described in paragraph (c) (7) of Rule 2-01 of Regulation S-X.
Pre-Approval Policies of the Audit, Compliance and Risk Committee. The Audit, Compliance and Risk 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 Risk Committee also has adopted a policy to pre-approve the engagement by the fund's investment manager and certain of its affiliates of the fund's independent auditors, even in circumstances where pre-approval is not required by applicable law. Any such requests by the fund's investment manager 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.
(2) None of the services described in paragraphs (b) through (d) of this Item were performed in reliance on paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable.
(g) Non-audit fees billed by the Auditor for services rendered to the Registrant and the Service Affiliates during the reporting period were $864,236 in December 31, 2024 and $1,655,229 in December 31, 2025.
(h) Yes. The Registrant's Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates, which were not pre-approved (not requiring pre-approval), is compatible with maintaining the Auditor's independence. All services provided by the Auditor to the Registrant or to the Service Affiliates, which were required to be pre-approved, were pre-approved as required.
(i) Not applicable.
(j) Not applicable
| ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable.
| ITEM 6. | SCHEDULE OF INVESTMENTS. |
| (a) | Please see schedule of investments contained in the Financial Statements and Financial Highlights included under Item 7 of this Form N-CSR. |
| (b) | Not applicable. |
| ITEM 7. | FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
Putnam
VT
Mortgage
Securities
Fund
Financial
Statements
and
Other
Important
Information
Annual
|
December 31, 2025
Table
of
Contents
franklintempleton.com
Financial
Statements
and
Other
Important
Information-Annual
1
Financial
Highlights
and
Schedule
of
Investments
2
Financial
Statements
16
Notes
to
Financial
Statements
20
Report
of
Independent
Registered
Public
Accounting
Firm
34
Tax
Information
35
Changes
In
and
Disagreements
with
Accountants
36
Results
of
Meeting(s)
of
Shareholders
36
Remuneration
Paid
to
Directors,
Officers
and
Others
36
Board
Approval
of
Management
and
Subadvisory
Agreements
36
Putnam
Variable
Trust
Financial
Highlights
Putnam
VT
Mortgage
Securities
Fund
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
2
a
Year
Ended
December
31,
2025
2024
2023
2022
2021
Class
IA
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$6.23
$6.37
$7.17
$8.74
$9.05
Income
from
investment
operations
a
:
Net
investment
income
b
.........................
0.38
0.46
0.44
0.42
0.40
Net
realized
and
unrealized
gains
(losses)
...........
0.18
(0.16)
(0.10)
(1.23)
(0.71)
Total
from
investment
operations
....................
0.56
0.30
0.34
(0.81)
(0.31)
Less
distributions
from:
Net
investment
income
..........................
(0.56)
(0.44)
(1.14)
(0.76)
-
Net
asset
value,
end
of
year
.......................
$6.23
$6.23
$6.37
$7.17
$8.74
Total
return
c
...................................
9.39%
4.97%
5.58%
(9.95)%
(3.43)%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
1.00%
0.84%
1.03%
0.93%
0.78%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
0.50%
0.50%
0.50%
0.50%
0.50%
Net
investment
income
...........................
6.20%
7.33%
7.01%
5.41%
4.44%
Supplemental
data
Net
assets,
end
of
year
(000's)
.....................
$12,988
$13,913
$14,760
$16,054
$20,386
Portfolio
turnover
rate
............................
871%
1580%
1865%
1110%
904%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund's
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
include
fees,
charges
or
expenses
imposed
by
the
variable
annuity
and
life
insurance
contracts
for
which
Putnam
Variable
Trust
serves
as
an
underlying
investment
vehicle.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Putnam
Variable
Trust
Financial
Highlights
Putnam
VT
Mortgage
Securities
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
3
a
Year
Ended
December
31,
2025
2024
2023
2022
2021
Class
IB
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$6.20
$6.34
$7.14
$8.69
$9.02
Income
from
investment
operations
a
:
Net
investment
income
b
.........................
0.36
0.44
0.43
0.40
0.38
Net
realized
and
unrealized
gains
(losses)
...........
0.18
(0.15)
(0.11)
(1.21)
(0.71)
Total
from
investment
operations
....................
0.54
0.29
0.32
(0.81)
(0.33)
Less
distributions
from:
Net
investment
income
..........................
(0.54)
(0.43)
(1.12)
(0.74)
-
Net
asset
value,
end
of
year
.......................
$6.20
$6.20
$6.34
$7.14
$8.69
Total
return
c
...................................
9.09%
4.76%
5.27%
(10.07)%
(3.66)%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
1.24%
1.09%
1.28%
1.18%
1.03%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
0.75%
0.75%
0.75%
0.75%
0.75%
Net
investment
income
...........................
5.95%
7.14%
6.76%
5.16%
4.19%
Supplemental
data
Net
assets,
end
of
year
(000's)
.....................
$12,757
$13,381
$14,095
$14,627
$20,425
Portfolio
turnover
rate
............................
871%
1580%
1865%
1110%
904%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund's
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
include
fees,
charges
or
expenses
imposed
by
the
variable
annuity
and
life
insurance
contracts
for
which
Putnam
Variable
Trust
serves
as
an
underlying
investment
vehicle.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Putnam
Variable
Trust
Schedule
of
Investments,
December
31,
2025
Putnam
VT
Mortgage
Securities
Fund
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
4
a
a
Principal
Amount
a
Value
a
a
a
a
a
Asset-Backed
Securities
3.0%
Financial
Services
3.0%
Bayview
Financial
Mortgage
Pass-Through
Trust
,
2006-C
,
1A3
,
6.528
%
,
11/28/36
...
$
74,295
$
73,577
a
Carrington
Mortgage
Loan
Trust
,
2006-NC2
,
A4
,
FRN
,
4.326
%
,
(
1-month
SOFR
+
0.594
%
),
6/25/36
..................................................
246,210
238,653
a
CWABS,
Inc.
Asset-Backed
Certificates
Trust
,
2007-10
,
1A1
,
FRN
,
4.026
%
,
(
1-month
SOFR
+
0.294
%
),
6/25/47
...........................................
143,080
137,999
b
DataBank
Issuer
II
LLC
,
2025-1A
,
A2
,
144A,
5.18
%
,
9/27/55
...................
28,000
27,635
a
Morgan
Stanley
ABS
Capital
I,
Inc.
Trust
,
2004-HE9
,
M2
,
FRN
,
4.776
%
,
(
1-month
SOFR
+
1.044
%
),
11/25/34
..........................................
578
580
b
New
Economy
Assets
-
Phase
1
Sponsor
LLC
,
2021-1
,
A1
,
144A,
1.91
%
,
10/20/61
..
100,000
83,776
a
,b
PRMI
Securitization
Trust
,
2024-CMG1
,
A1
,
144A,
FRN
,
5.475
%
,
(
30-day
SOFR
Average
+
1.45
%
),
7/25/54
...........................................
118,062
118,364
b
SF
ABS
Issuer
LLC
,
2025-1A
,
A2
,
144A,
5.377
%
,
11/25/55
....................
65,000
63,733
b
,c
Tricolor
Auto
Securitization
Trust
,
2024-1A
,
A
,
144A,
6.61
%
,
10/15/27
............
29,572
28,989
773,306
a
a
a
a
a
Total
Asset-Backed
Securities
(Cost
$
754,006
)
..................................
773,306
Commercial
Mortgage-Backed
Securities
26.1%
Financial
Services
26.1%
BANK
,
b
2018-BN11
,
D
,
144A,
3
%
,
3/15/61
.....................................
59,000
49,866
d,e
2024-BNK48
,
XA
,
IO,
FRN
,
1.144
%
,
10/15/57
............................
774,897
61,939
d,e
2020-BN26
,
XA
,
IO,
FRN
,
1.19
%
,
3/15/63
...............................
963,293
35,454
d
,e
BANK5
Trust
,
2024-5YR10
,
XA
,
IO,
FRN
,
1.188
%
,
10/15/57
...................
1,180,087
45,966
b
Barclays
Commercial
Mortgage
Trust
,
2019-C4
,
E
,
144A,
3.25
%
,
8/15/52
.....................................
111,000
61,088
e
2019-C5
,
F
,
144A,
FRN
,
2.574
%
,
11/15/52
...............................
80,000
49,276
d
,e
BBCMS
Mortgage
Trust
,
2024-5C29
,
XA
,
IO,
FRN
,
1.599
%
,
9/15/57
...............................
1,466,604
75,501
2025-C32
,
XA
,
IO,
FRN
,
1.128
%
,
2/15/62
................................
998,676
82,094
Benchmark
Mortgage
Trust
,
e
2018-B1
,
C
,
FRN
,
4.202
%
,
1/15/51
....................................
49,000
41,040
b,e
2018-B3
,
D
,
144A,
FRN
,
3.045
%
,
4/10/51
...............................
77,000
55,320
b
2019-B11
,
D
,
144A,
3
%
,
5/15/52
......................................
115,000
63,018
b
2019-B13
,
D
,
144A,
2.5
%
,
8/15/57
.....................................
105,000
63,274
b,e
2018-B1
,
E
,
144A,
FRN
,
3
%
,
1/15/51
...................................
108,000
57,422
d,e
2024-V10
,
XA
,
IO,
FRN
,
1.305
%
,
9/15/57
................................
1,157,901
48,830
d,e
2019-B15
,
XA
,
IO,
FRN
,
0.8
%
,
12/15/72
.................................
1,077,598
26,436
b
,e
BWAY
Mortgage
Trust
,
2022-26BW
,
E
,
144A,
FRN
,
4.866
%
,
2/10/44
.............................
100,000
55,641
2022-26BW
,
F
,
144A,
FRN
,
4.866
%
,
2/10/44
.............................
138,000
68,054
CD
Mortgage
Trust
,
e
2017-CD3
,
B
,
FRN
,
3.984
%
,
2/10/50
...................................
60,000
40,165
e
2017-CD4
,
B
,
FRN
,
3.947
%
,
5/10/50
...................................
109,000
104,375
e
2017-CD3
,
C
,
FRN
,
4.575
%
,
2/10/50
...................................
134,000
49,501
b
2017-CD3
,
D
,
144A,
3.25
%
,
2/10/50
....................................
128,299
7,371
b
2019-CD8
,
D
,
144A,
3
%
,
8/15/57
......................................
84,000
54,816
Citigroup
Commercial
Mortgage
Trust
,
e
2015-GC33
,
C
,
FRN
,
4.335
%
,
9/10/58
..................................
83,000
72,650
b,e
2015-GC27
,
D
,
144A,
FRN
,
4.376
%
,
2/10/48
.............................
102,393
99,622
2015-GC33
,
D
,
3.172
%
,
9/10/58
.......................................
16,000
9,900
COMM
Mortgage
Trust
,
2012-CR4
,
AM
,
3.251
%
,
10/15/45
.....................................
106,000
98,484
2013-CR12
,
AM
,
4.3
%
,
10/10/46
......................................
103,809
98,630
Putnam
Variable
Trust
Schedule
of
Investments
Putnam
VT
Mortgage
Securities
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
5
a
a
Principal
Amount
a
Value
a
a
a
a
a
Commercial
Mortgage-Backed
Securities
(continued)
Financial
Services
(continued)
COMM
Mortgage
Trust,
(continued)
e
2014-UBS5
,
AM
,
FRN
,
4.193
%
,
9/10/47
.................................
$
30,349
$
29,908
b
2012-CR4
,
B
,
144A,
3.703
%
,
10/15/45
..................................
61,000
43,779
2014-CR17
,
B
,
4.377
%
,
5/10/47
.......................................
53,394
51,966
e
2015-DC1
,
B
,
FRN
,
4.035
%
,
2/10/48
...................................
85,000
81,532
e
2014-CR16
,
C
,
FRN
,
4.777
%
,
4/10/47
..................................
119,000
113,496
e
2014-CR17
,
C
,
FRN
,
4.781
%
,
5/10/47
..................................
148,000
137,651
b,e
2013-LC13
,
D
,
144A,
FRN
,
5.37
%
,
8/10/46
..............................
96,775
90,883
b,e
2014-CR17
,
D
,
144A,
FRN
,
4.845
%
,
5/10/47
.............................
144,000
120,747
e
2015-CR26
,
D
,
FRN
,
3.613
%
,
10/10/48
.................................
85,000
69,775
b
2017-COR2
,
D
,
144A,
3
%
,
9/10/50
.....................................
113,000
102,502
b,e
2018-COR3
,
D
,
144A,
FRN
,
2.813
%
,
5/10/51
.............................
40,000
16,766
b,e
2015-LC19
,
E
,
144A,
FRN
,
4.418
%
,
2/10/48
..............................
115,000
104,356
CSAIL
Commercial
Mortgage
Trust
,
e
2015-C1
,
B
,
FRN
,
3.833
%
,
4/15/50
....................................
62,874
60,213
e
2015-C3
,
C
,
FRN
,
4.047
%
,
8/15/48
....................................
56,000
51,363
e
2015-C1
,
C
,
FRN
,
3.833
%
,
4/15/50
....................................
124,000
113,190
e
2015-C2
,
C
,
FRN
,
4.044
%
,
6/15/57
....................................
25,572
24,638
b
2019-C17
,
D
,
144A,
2.5
%
,
9/15/52
.....................................
50,000
27,114
e
2015-C2
,
D
,
FRN
,
4.044
%
,
6/15/57
....................................
55,000
44,550
b
,e
DBUBS
Mortgage
Trust
,
2011-LC3A
,
D
,
144A,
FRN
,
5.35
%
,
8/10/44
.............
113,939
110,303
GS
Mortgage
Securities
Trust
,
2014-GC22
,
AS
,
4.113
%
,
6/10/47
......................................
83,000
77,590
e
2014-GC24
,
B
,
FRN
,
4.43
%
,
9/10/47
...................................
100,000
96,529
b,e
2013-GC13
,
D
,
144A,
FRN
,
3.859
%
,
7/10/46
.............................
105,000
77,946
b,e
2014-GC24
,
D
,
144A,
FRN
,
4.451
%
,
9/10/47
.............................
123,000
78,104
b,e
2017-GS5
,
D
,
144A,
FRN
,
3.509
%
,
3/10/50
..............................
61,000
8,002
J.P.
Morgan
Chase
Commercial
Mortgage
Securities
Trust
,
2013-LC11
,
B
,
3.499
%
,
4/15/46
.......................................
21,103
19,510
e
2013-C10
,
C
,
FRN
,
4.104
%
,
12/15/47
..................................
22,802
22,136
b,e
2011-C3
,
D
,
144A,
FRN
,
5.526
%
,
2/15/46
...............................
145,000
134,064
e
2013-LC11
,
D
,
FRN
,
4.19
%
,
4/15/46
...................................
187,000
11,783
b,e
2012-LC9
,
D
,
144A,
FRN
,
3.571
%
,
12/15/47
.............................
100,000
95,226
e
JPMBB
Commercial
Mortgage
Securities
Trust
,
2014-C18
,
B
,
FRN
,
4.505
%
,
2/15/47
...................................
46,893
46,010
2014-C25
,
B
,
FRN
,
4.347
%
,
11/15/47
...................................
95,000
88,757
2014-C22
,
C
,
FRN
,
4.513
%
,
9/15/47
...................................
73,000
68,910
2013-C12
,
D
,
FRN
,
3.94
%
,
7/15/45
....................................
87,000
81,280
b
2013-C14
,
D
,
144A,
FRN
,
4.037
%
,
8/15/46
..............................
116,000
90,822
b
2014-C23
,
D
,
144A,
FRN
,
4.036
%
,
9/15/47
..............................
100,000
92,722
e
JPMDB
Commercial
Mortgage
Securities
Trust
,
2018-C8
,
C
,
FRN
,
4.755
%
,
6/15/51
....................................
53,000
48,351
b
2016-C2
,
D
,
144A,
FRN
,
3.361
%
,
6/15/49
...............................
157,000
77,689
b
LSTAR
Commercial
Mortgage
Trust
,
2017-5
,
A5
,
144A,
3.549
%
,
3/10/50
..........
60,000
59,240
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
,
e
2013-C9
,
B
,
FRN
,
3.708
%
,
5/15/46
....................................
73,151
71,283
e
2013-C10
,
B
,
FRN
,
3.952
%
,
7/15/46
...................................
69,119
66,014
e
2013-C9
,
C
,
FRN
,
3.707
%
,
5/15/46
....................................
58,000
54,355
e
2013-C12
,
C
,
FRN
,
4.699
%
,
10/15/46
..................................
11,447
10,918
e
2015-C22
,
C
,
FRN
,
3.972
%
,
4/15/48
...................................
98,000
86,838
e
2015-C24
,
C
,
FRN
,
3.939
%
,
5/15/48
...................................
22,969
22,859
e
2015-C25
,
C
,
FRN
,
4.374
%
,
10/15/48
..................................
51,539
51,416
e
2017-C34
,
C
,
FRN
,
4.169
%
,
11/15/52
...................................
60,000
52,749
b
2015-C24
,
D
,
144A,
3.257
%
,
5/15/48
...................................
63,000
61,938
b,e
2015-C23
,
D
,
144A,
FRN
,
4.204
%
,
7/15/50
..............................
36,497
35,574
Putnam
Variable
Trust
Schedule
of
Investments
Putnam
VT
Mortgage
Securities
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
a
a
Principal
Amount
a
Value
a
a
a
a
a
Commercial
Mortgage-Backed
Securities
(continued)
Financial
Services
(continued)
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust,
(continued)
b,e
2012-C5
,
E
,
144A,
FRN
,
4.639
%
,
8/15/45
...............................
$
52,152
$
51,204
b,e
2012-C6
,
E
,
144A,
FRN
,
4.345
%
,
11/15/45
...............................
124,000
69,357
b,e
2015-C24
,
E
,
144A,
FRN
,
3.939
%
,
5/15/48
...............................
82,000
79,666
b,e
2013-C10
,
F
,
144A,
FRN
,
3.952
%
,
7/15/46
...............................
141,000
17,263
e
Morgan
Stanley
Capital
I
Trust
,
2015-MS1
,
C
,
FRN
,
4.15
%
,
5/15/48
....................................
94,000
85,850
2016-UB11
,
C
,
FRN
,
3.691
%
,
8/15/49
..................................
126,000
123,852
2018-H3
,
C
,
FRN
,
4.848
%
,
7/15/51
....................................
88,000
82,241
b
2011-C3
,
E
,
144A,
FRN
,
4.94
%
,
7/15/49
.................................
35,633
35,187
e
UBS
Commercial
Mortgage
Trust
,
2017-C3
,
C
,
FRN
,
4.355
%
,
8/15/50
....................................
94,000
88,361
2018-C11
,
C
,
FRN
,
4.874
%
,
6/15/51
...................................
66,000
61,545
2018-C13
,
C
,
FRN
,
4.988
%
,
10/15/51
..................................
98,000
91,127
b
2018-C11
,
D
,
144A,
FRN
,
3
%
,
6/15/51
..................................
136,000
88,264
b
2012-C1
,
E
,
144A,
FRN
,
5
%
,
5/10/45
...................................
74,969
68,214
Wells
Fargo
Commercial
Mortgage
Trust
,
e
2016-BNK1
,
C
,
FRN
,
3.071
%
,
8/15/49
..................................
65,000
46,810
e
2018-C46
,
C
,
FRN
,
4.953
%
,
8/15/51
...................................
51,000
48,239
e
2020-C57
,
C
,
FRN
,
4.023
%
,
8/15/53
...................................
23,000
21,111
b,e
2014-LC18
,
D
,
144A,
FRN
,
3.957
%
,
12/15/47
.............................
101,000
93,867
e
2015-C29
,
D
,
FRN
,
4.213
%
,
6/15/48
...................................
24,147
23,490
2015-C31
,
D
,
3.852
%
,
11/15/48
.......................................
135,000
119,610
b
2017-RB1
,
D
,
144A,
3.401
%
,
3/15/50
...................................
61,000
27,491
b
2020-C55
,
D
,
144A,
2.5
%
,
2/15/53
.....................................
100,000
68,166
e
2016-NXS5
,
D
,
FRN
,
4.908
%
,
1/15/59
..................................
51,000
39,422
b
2016-C33
,
D
,
144A,
3.123
%
,
3/15/59
...................................
75,000
68,825
b,e
2015-C31
,
E
,
144A,
FRN
,
4.72
%
,
11/15/48
...............................
118,000
67,909
e
WFRBS
Commercial
Mortgage
Trust
,
2014-C21
,
B
,
FRN
,
4.213
%
,
8/15/47
...................................
84,482
82,708
2014-C23
,
B
,
FRN
,
4.279
%
,
10/15/57
...................................
50,000
48,491
2013-C11
,
C
,
FRN
,
4.011
%
,
3/15/45
....................................
74,000
71,807
2012-C10
,
C
,
FRN
,
4.31
%
,
12/15/45
...................................
57,000
50,501
2013-C15
,
C
,
FRN
,
4.145
%
,
8/15/46
...................................
61,000
55,206
2014-C21
,
C
,
FRN
,
4.234
%
,
8/15/47
...................................
90,000
84,960
6,719,824
a
a
a
a
a
Total
Commercial
Mortgage-Backed
Securities
(Cost
$
7,210,853
)
.................
6,719,824
Mortgage-Backed
Securities
150.5%
Federal
Home
Loan
Mortgage
Corp.
(FHLMC)
Fixed
Rate
0.1%
FHLMC
Pool,
30
Year
,
7
%,
11/01/26
-
4/01/32
..............................
19,564
20,553
FHLMC
Pool,
30
Year
,
7.5
%,
9/01/30
-
7/01/31
.............................
3,950
4,059
24,612
Federal
National
Mortgage
Association
(FNMA)
Fixed
Rate
113.2%
FNMA,
30
Year
,
6.5
%,
9/01/36
.........................................
5,034
5,300
FNMA,
30
Year
,
7
%,
8/01/33
-
10/01/33
...................................
35,199
36,982
FNMA,
30
Year
,
7.5
%,
9/01/30
-
11/01/30
.................................
1,534
1,574
f
Uniform
Mortgage-Backed
Securities
,
1.5
%
,
TBA,
1/25/41
.....................
1,000,000
905,078
f
Uniform
Mortgage-Backed
Securities
,
2
%
,
TBA,
1/25/41
......................
1,000,000
926,094
f
Uniform
Mortgage-Backed
Securities
,
2
%
,
TBA,
1/25/56
......................
7,000,000
5,660,128
f
Uniform
Mortgage-Backed
Securities
,
2.5
%
,
TBA,
1/25/41
.....................
1,000,000
946,289
f
Uniform
Mortgage-Backed
Securities
,
2.5
%
,
TBA,
1/25/56
.....................
3,000,000
2,536,641
f
Uniform
Mortgage-Backed
Securities
,
3
%
,
TBA,
1/25/56
......................
2,000,000
1,769,297
Putnam
Variable
Trust
Schedule
of
Investments
Putnam
VT
Mortgage
Securities
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
7
a
a
Principal
Amount
a
Value
a
a
a
a
a
Mortgage-Backed
Securities
(continued)
Federal
National
Mortgage
Association
(FNMA)
Fixed
Rate
(continued)
f
Uniform
Mortgage-Backed
Securities
,
3.5
%
,
TBA,
1/25/56
.....................
$
3,000,000
$
2,773,945
f
Uniform
Mortgage-Backed
Securities
,
4
%
,
TBA,
1/25/56
......................
2,000,000
1,897,318
f
Uniform
Mortgage-Backed
Securities
,
5
%
,
TBA,
1/25/56
......................
1,000,000
997,422
f
Uniform
Mortgage-Backed
Securities
,
5.5
%
,
TBA,
1/25/56
.....................
7,000,000
7,098,972
f
Uniform
Mortgage-Backed
Securities
,
6
%
,
TBA,
1/25/56
......................
3,000,000
3,080,651
f
Uniform
Mortgage-Backed
Securities
,
6.5
%
,
TBA,
1/25/56
.....................
500,000
519,698
29,155,389
Government
National
Mortgage
Association
(GNMA)
Fixed
Rate
37.2%
GNMA
I,
30
Year
,
6
%,
4/15/28
..........................................
993
1,013
GNMA
I,
30
Year
,
6.5
%,
4/15/28
........................................
19
20
GNMA
I,
Single-family,
30
Year
,
6.5
%,
5/15/28
-
8/15/32
......................
1,525
1,551
f
GNMA
II,
Single-family,
30
Year
,
2
%,
1/15/56
...............................
1,000,000
828,433
f
GNMA
II,
Single-family,
30
Year
,
2.5
%,
1/15/56
.............................
2,000,000
1,725,469
f
GNMA
II,
Single-family,
30
Year
,
3.5
%,
1/15/56
.............................
1,000,000
910,195
f
GNMA
II,
Single-family,
30
Year
,
4
%,
1/15/56
...............................
1,000,000
944,805
GNMA
II,
Single-family,
30
Year
,
4.5
%,
5/20/48
.............................
50,811
50,040
f
GNMA
II,
Single-family,
30
Year
,
4.5
%,
1/15/56
.............................
1,000,000
974,219
f
GNMA
II,
Single-family,
30
Year
,
5
%,
1/15/56
...............................
1,000,000
997,871
GNMA
II,
Single-family,
30
Year
,
5.5
%,
4/20/38
.............................
38,193
39,590
f
GNMA
II,
Single-family,
30
Year
,
5.5
%,
1/15/56
.............................
1,000,000
1,009,853
GNMA
II,
Single-family,
30
Year
,
6
%,
4/20/37
-
11/20/38
.......................
25,921
27,186
f
GNMA
II,
Single-family,
30
Year
,
6
%,
1/15/56
...............................
1,000,000
1,019,180
GNMA
II,
Single-family,
30
Year
,
6.5
%,
7/20/36
.............................
8,686
9,248
f
GNMA
II,
Single-family,
30
Year
,
6.5
%,
1/15/56
.............................
1,000,000
1,033,828
9,572,501
Total
Mortgage-Backed
Securities
(Cost
$
38,687,539
)
............................
38,752,502
Residential
Mortgage-Backed
Securities
19.3%
Financial
Services
19.3%
b
A&D
Mortgage
Trust
,
2023-NQM2
,
A1
,
144A,
6.132
%
,
5/25/68
................................
72,149
72,233
2023-NQM4
,
A1
,
144A,
7.472
%
,
9/25/68
................................
161,551
163,785
2023-NQM5
,
A1
,
144A,
7.049
%
,
11/25/68
...............................
96,513
97,714
2024-NQM1
,
A1
,
144A,
6.195
%
,
2/25/69
................................
85,887
86,580
a
Alternative
Loan
Trust
,
2006-OA19
,
A1
,
FRN
,
4.028
%
,
(
1-month
SOFR
+
0.294
%
),
2/20/47
.........................................................
133,772
109,881
a
American
Home
Mortgage
Investment
Trust
,
2007-1
,
GA1C
,
FRN
,
4.036
%
,
(
1-month
SOFR
+
0.304
%
),
5/25/47
...........................................
347,305
211,732
b
BRAVO
Residential
Funding
Trust
,
2024-NQM2
,
A1
,
144A,
6.285
%
,
2/25/64
.......
86,342
87,176
a
,b
Chevy
Chase
Funding
LLC
,
2006-4A
,
A2
,
144A,
FRN
,
4.026
%
,
(
1-month
SOFR
+
0.294
%
),
11/25/47
.................................................
105,941
96,621
b
COLT
Mortgage
Loan
Trust
,
2023-3
,
A1
,
144A,
7.18
%
,
9/25/68
.................
118,201
119,597
b
Cross
Mortgage
Trust
,
2024-H1
,
A1
,
144A,
6.085
%
,
12/25/68
..................
139,741
140,949
a
,b
FHLMC
STACR
REMIC
Trust
,
2020-HQA3
,
B2
,
144A,
FRN
,
13.989
%
,
(
30-day
SOFR
Average
+
10.114
%
),
7/25/50
64,000
84,663
2020-DNA4
,
B2
,
144A,
FRN
,
13.989
%
,
(
30-day
SOFR
Average
+
10.114
%
),
8/25/50
65,000
86,761
2020-DNA5
,
B2
,
144A,
FRN
,
15.374
%
,
(
30-day
SOFR
Average
+
11.5
%
),
10/25/50
56,000
77,664
a
,b
FHLMC
STACR
Trust
,
2019-FTR1
,
B2
,
144A,
FRN
,
12.339
%
,
(
30-day
SOFR
Average
+
8.464
%
),
1/25/48
200,000
237,412
2018-DNA3
,
B2
,
144A,
FRN
,
11.739
%
,
(
30-day
SOFR
Average
+
7.864
%
),
9/25/48
431,000
493,921
2018-HQA2
,
B2
,
144A,
FRN
,
14.989
%
,
(
30-day
SOFR
Average
+
11.114
%
),
10/25/48
413,000
513,037
2019-DNA1
,
B2
,
144A,
FRN
,
14.739
%
,
(
30-day
SOFR
Average
+
10.864
%
),
1/25/49
32,000
39,432
2019-HQA1
,
B2
,
144A,
FRN
,
16.239
%
,
(
30-day
SOFR
Average
+
12.364
%
),
2/25/49
222,000
270,439
Putnam
Variable
Trust
Schedule
of
Investments
Putnam
VT
Mortgage
Securities
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
8
a
a
Principal
Amount
a
Value
a
a
a
a
a
Residential
Mortgage-Backed
Securities
(continued)
Financial
Services
(continued)
a
FNMA
,
2003-W8
,
3F2
,
FRN
,
4.339
%
,
(
30-day
SOFR
Average
+
0.464
%
),
5/25/42
...
$
1,185
$
1,181
a
FNMA
Connecticut
Avenue
Securities
Trust
,
2016-C03
,
1B
,
FRN
,
15.739
%
,
(
30-day
SOFR
Average
+
11.864
%
),
10/25/28
.....
153,720
158,470
2016-C04
,
1B
,
FRN
,
14.239
%
,
(
30-day
SOFR
Average
+
10.364
%
),
1/25/29
......
195,485
204,501
b
2019-R05
,
1B1
,
144A,
FRN
,
8.089
%
,
(
30-day
SOFR
Average
+
4.214
%
),
7/25/39
..
55,704
56,522
b
2020-SBT1
,
1M2
,
144A,
FRN
,
7.639
%
,
(
30-day
SOFR
Average
+
3.764
%
),
2/25/40
79,000
81,454
b
2020-R02
,
2B1
,
144A,
FRN
,
6.989
%
,
(
30-day
SOFR
Average
+
3.114
%
),
1/25/40
..
35,000
35,608
b
2022-R02
,
2B1
,
144A,
FRN
,
8.374
%
,
(
30-day
SOFR
Average
+
4.5
%
),
1/25/42
...
35,000
36,188
b
2022-R02
,
2M2
,
144A,
FRN
,
6.874
%
,
(
30-day
SOFR
Average
+
3
%
),
1/25/42
.....
292,000
297,367
a
J.P.
Morgan
Alternative
Loan
Trust
,
2006-A6
,
1A1
,
FRN
,
4.166
%
,
(
1-month
SOFR
+
0.434
%
),
11/25/36
.................................................
48,840
42,331
a
,b
J.P.
Morgan
Mortgage
Trust
,
2024-9
,
A11
,
144A,
FRN
,
5.224
%
,
(
30-day
SOFR
Average
+
1.35
%
),
2/25/55
.................................................
107,624
107,902
b
MFA
Trust
,
2025-NQM3
,
A1
,
144A,
5.261
%
,
8/25/70
.........................
96,541
96,854
a
,b
Morgan
Stanley
Re-REMIC
Trust
,
2010-R4
,
4B
,
144A,
FRN
,
3.161
%
,
(
1-month
SOFR
+
0.344
%
),
2/26/37
................................................
47,694
46,234
b
Morgan
Stanley
Residential
Mortgage
Loan
Trust
,
2024-NQM2
,
A1
,
144A,
6.386
%
,
5/25/69
................................
139,802
141,672
a
2024-4
,
AF
,
144A,
FRN
,
5.224
%
,
(
30-day
SOFR
Average
+
1.35
%
),
9/25/54
......
57,425
57,360
b
Saluda
Grade
Alternative
Mortgage
Trust
,
2024-RTL5
,
A1
,
144A,
7.762
%
,
4/25/30
...
170,000
171,344
a
Structured
Asset
Mortgage
Investments
II
Trust
,
2007-AR7
,
1A1
,
FRN
,
4.696
%
,
(
1-month
SOFR
+
0.964
%
),
5/25/47
............
338,452
281,382
2006-AR7
,
A1BG
,
FRN
,
3.966
%
,
(
1-month
SOFR
+
0.234
%
),
8/25/36
...........
18,564
16,691
b
,e
Towd
Point
Mortgage
Trust
,
2019-2
,
A2
,
144A,
FRN
,
3.75
%
,
12/25/58
............
102,000
93,834
a
WaMu
Mortgage
Pass-Through
Certificates
Trust
,
2005-AR8
,
2AC2
,
FRN
,
4.766
%
,
(
1-month
SOFR
+
1.034
%
),
7/25/45
....................................
48,710
46,876
4,963,368
a
a
a
a
a
Total
Residential
Mortgage-Backed
Securities
(Cost
$
4,863,384
)
..................
4,963,368
Agency
Commercial
Mortgage-Backed
Securities
30.1%
Financial
Services
30.1%
FHLMC
,
3391
,
Strip
,
4/15/37
................................................
1,812
1,595
d
4953
,
AI
,
IO,
4
%
,
2/25/50
............................................
582,357
117,685
d
304
,
C37
,
IO,
3.5
%
,
12/15/27
.........................................
3,183
50
a
3065
,
DC
,
FRN
,
7.565
%
,
(
30-day
SOFR
Average
+
19.517
%
),
3/15/35
..........
41,377
43,339
d
4018
,
DI
,
IO,
4.5
%
,
7/15/41
..........................................
9,814
113
a,d
5003
,
DS
,
IO,
FRN
,
2.111
%
,
(
30-day
SOFR
Average
+
5.986
%
),
8/25/50
........
500,772
66,070
a
3408
,
EK
,
FRN
,
9.302
%
,
(
30-day
SOFR
Average
+
25.332
%
),
4/15/37
..........
7,092
8,547
a
406
,
F30
,
FRN
,
5.024
%
,
(
30-day
SOFR
Average
+
1.15
%
),
10/25/53
...........
61,180
61,605
a
5391
,
FC
,
FRN
,
4.974
%
,
(
30-day
SOFR
Average
+
1.1
%
),
3/25/54
.............
28,598
28,768
d
5349
,
IB
,
IO,
4
%
,
12/15/46
...........................................
246,789
53,954
d
5050
,
IM
,
IO,
3.5
%
,
10/25/50
.........................................
442,217
87,505
d
4136
,
IQ
,
IO,
3.5
%
,
11/15/42
.........................................
149,633
15,082
d
5071
,
IV
,
IO,
3
%
,
12/25/50
...........................................
917,592
163,411
a,d
4915
,
SD
,
IO,
FRN
,
2.061
%
,
(
30-day
SOFR
Average
+
5.936
%
),
9/25/49
........
341,667
38,206
a,d
4839
,
WS
,
IO,
FRN
,
2.002
%
,
(
30-day
SOFR
Average
+
5.986
%
),
8/15/56
........
386,882
54,646
a
,b
FHLMC
Multi-family
Structured
Credit
Risk
Trust
,
2021-MN1
,
M1
,
144A,
FRN
,
5.874
%
,
(
30-day
SOFR
Average
+
2
%
),
1/25/51
.....
22,048
22,009
2021-MN1
,
M2
,
144A,
FRN
,
7.624
%
,
(
30-day
SOFR
Average
+
3.75
%
),
1/25/51
...
85,000
87,932
2021-MN3
,
M2
,
144A,
FRN
,
7.874
%
,
(
30-day
SOFR
Average
+
4
%
),
11/25/51
....
148,000
153,737
FNMA
,
d
2020-31
,
IO,
4.5
%
,
5/25/50
..........................................
903,231
164,592
d
2020-96
,
IO,
3
%
,
1/25/51
............................................
682,214
112,765
Putnam
Variable
Trust
Schedule
of
Investments
Putnam
VT
Mortgage
Securities
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
9
a
a
Principal
Amount
a
Value
a
a
a
a
a
Agency
Commercial
Mortgage-Backed
Securities
(continued)
Financial
Services
(continued)
FNMA,
(continued)
d
2018-51
,
BI
,
IO,
5.5
%
,
7/25/38
........................................
$
101,400
$
4,972
2008-53
,
DO
,
Strip
,
7/25/38
..........................................
8,929
7,513
d
2012-104
,
HI
,
IO,
4
%
,
9/25/27
........................................
10,247
134
d
2023-49
,
IA
,
IO,
3
%
,
8/25/46
.........................................
419,440
54,722
d
2023-49
,
IB
,
IO,
3.5
%
,
3/25/47
........................................
483,095
74,938
d
2021-3
,
IB
,
IO,
2.5
%
,
2/25/51
.........................................
628,063
105,732
d
2021-25
,
IJ
,
IO,
3.5
%
,
5/25/51
........................................
370,337
71,506
d
2015-58
,
KI
,
IO,
6
%
,
3/25/37
.........................................
192,539
31,138
a,d
2011-123
,
KS
,
IO,
FRN
,
2.611
%
,
(
30-day
SOFR
Average
+
6.486
%
),
10/25/41
....
10,102
757
d
2020-62
,
MI
,
IO,
3.5
%
,
5/25/49
........................................
893,465
162,832
d
2021-12
,
NI
,
IO,
2.5
%
,
3/25/51
........................................
625,725
106,196
a,d
2018-20
,
SB
,
IO,
FRN
,
2.261
%
,
(
30-day
SOFR
Average
+
6.136
%
),
3/25/48
......
252,694
24,633
a
,b
FNMA
Multi-family
Connecticut
Avenue
Securities
Trust
,
2019-01
,
M10
,
144A,
FRN
,
7.239
%
,
(
30-day
SOFR
Average
+
3.364
%
),
10/25/49
......................
201,932
205,545
GNMA
,
d
2012-136
,
IO,
3.5
%
,
11/20/42
.........................................
189,804
24,522
d
2014-76
,
IO,
5
%
,
5/20/44
............................................
118,805
24,647
d,e
2024-32
,
IO,
FRN
,
0.7
%
,
6/16/63
......................................
805,635
41,313
d,e
2016-H24
,
IO,
FRN
,
2.084
%
,
9/20/66
...................................
297,526
18,495
d,e
2017-H09
,
IO,
FRN
,
1.887
%
,
4/20/67
...................................
258,464
7,578
d
2014-174
,
AI
,
IO,
3
%
,
11/16/29
........................................
50,407
1,167
d
2021-214
,
AI
,
IO,
4
%
,
12/20/51
.......................................
1,017,078
204,703
d,e
2014-H21
,
AI
,
IO,
FRN
,
1.704
%
,
10/20/64
...............................
265,334
11,881
d,e
2015-H04
,
AI
,
IO,
FRN
,
1.768
%
,
12/20/64
...............................
225,119
7,004
d,e
2015-H13
,
AI
,
IO,
FRN
,
2.034
%
,
6/20/65
................................
211,191
11,611
d,e
2015-H14
,
AI
,
IO,
FRN
,
2.237
%
,
6/20/65
................................
268,469
14,521
d,e
2015-H22
,
AI
,
IO,
FRN
,
2.022
%
,
9/20/65
................................
328,982
16,371
d,e
2016-H03
,
AI
,
IO,
FRN
,
2.163
%
,
1/20/66
................................
267,205
11,659
d,e
2016-H10
,
AI
,
IO,
FRN
,
1.835
%
,
4/20/66
................................
220,844
6,653
d,e
2016-H19
,
AI
,
IO,
FRN
,
2.251
%
,
9/20/66
................................
280,684
12,808
d,e
2020-H18
,
AI
,
IO,
FRN
,
1.849
%
,
9/20/70
................................
1,709,704
115,363
a,d
2023-7
,
AS
,
IO,
FRN
,
2.982
%
,
(
30-day
SOFR
Average
+
6.9
%
),
1/20/53
.........
1,546,402
110,035
a,d
2023-56
,
AS
,
IO,
FRN
,
2.242
%
,
(
30-day
SOFR
Average
+
6.16
%
),
4/20/53
.......
2,650,900
192,714
d
2014-182
,
BI
,
IO,
4
%
,
1/20/39
........................................
153,471
8,433
d,e
2016-H24
,
BI
,
IO,
FRN
,
2.087
%
,
11/20/66
...............................
666,406
30,884
d,e
2017-H04
,
BI
,
IO,
FRN
,
2.413
%
,
2/20/67
................................
237,220
10,133
d
2009-121
,
CI
,
IO,
4.5
%
,
12/16/39
......................................
171,270
27,487
d
2022-125
,
CI
,
IO,
5
%
,
6/20/52
........................................
503,498
97,668
d,e
2015-H20
,
CI
,
IO,
FRN
,
2.113
%
,
8/20/65
................................
264,569
13,834
d,e
2016-H06
,
DI
,
IO,
FRN
,
1.775
%
,
7/20/65
................................
174,807
7,143
a,d
2023-181
,
DS
,
IO,
FRN
,
2.082
%
,
(
30-day
SOFR
Average
+
6
%
),
11/20/53
.......
2,454,663
157,147
a,d
2023-173
,
ES
,
IO,
FRN
,
3.032
%
,
(
30-day
SOFR
Average
+
6.95
%
),
11/20/53
.....
1,234,961
90,433
a,d
2024-4
,
ES
,
IO,
FRN
,
3.032
%
,
(
30-day
SOFR
Average
+
6.95
%
),
1/20/54
........
1,835,770
154,946
d
2021-176
,
GI
,
IO,
3
%
,
10/20/51
.......................................
694,040
106,098
d,e
2016-H27
,
GI
,
IO,
FRN
,
2.344
%
,
12/20/66
...............................
413,740
26,140
d,e
2017-H08
,
GI
,
IO,
FRN
,
2.541
%
,
2/20/67
................................
320,649
28,118
d,e
2015-H10
,
HI
,
IO,
FRN
,
2.148
%
,
4/20/65
................................
369,469
19,813
a,d
2023-101
,
HS
,
IO,
FRN
,
2.082
%
,
(
30-day
SOFR
Average
+
6
%
),
7/20/53
........
3,304,875
212,047
d,e
2025-H14
,
IA
,
IO,
FRN
,
1.766
%
,
5/20/75
................................
3,026,681
90,160
d
2020-138
,
IB
,
IO,
2.5
%
,
9/20/50
.......................................
913,425
132,247
d
2014-102
,
IG
,
IO,
3.5
%
,
3/16/41
.......................................
8,212
118
d
2024-4
,
IG
,
IO,
5
%
,
12/20/52
.........................................
957,665
185,131
d
2013-39
,
IJ
,
IO,
4.5
%
,
3/20/43
........................................
359,315
54,700
d,e
2016-H13
,
IK
,
IO,
FRN
,
2.648
%
,
6/20/66
................................
216,489
19,263
d
2021-89
,
IL
,
IO,
4.5
%
,
5/20/51
........................................
548,507
129,327
d
2021-8
,
IP
,
IO,
2.5
%
,
1/20/51
.........................................
1,059,586
156,175
Putnam
Variable
Trust
Schedule
of
Investments
Putnam
VT
Mortgage
Securities
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
10
a
a
Principal
Amount
a
Value
a
a
a
a
a
Agency
Commercial
Mortgage-Backed
Securities
(continued)
Financial
Services
(continued)
GNMA,
(continued)
d
2021-188
,
IW
,
IO,
3
%
,
10/20/51
.......................................
$
501,756
$
86,011
d,e
2021-H12
,
IY
,
IO,
FRN
,
0.017
%
,
8/20/71
................................
5,656,190
111,021
d
2020-175
,
JI
,
IO,
3.5
%
,
11/20/50
......................................
1,227,918
234,683
d,e
2016-H24
,
JI
,
IO,
FRN
,
2.291
%
,
11/20/66
................................
120,859
7,586
d,e
2022-H04
,
JI
,
IO,
FRN
,
0.501
%
,
2/20/72
.................................
2,283,010
110,758
d
2015-52
,
KI
,
IO,
3.5
%
,
11/20/40
.......................................
49,868
1,717
d,e
2017-H03
,
KI
,
IO,
FRN
,
2.751
%
,
1/20/67
................................
345,554
28,095
d
2016-75
,
LI
,
IO,
6
%
,
1/20/40
.........................................
101,047
14,209
d
2015-89
,
LI
,
IO,
5
%
,
12/20/44
.........................................
214,080
38,215
d
2012-38
,
MI
,
IO,
4
%
,
3/20/42
.........................................
472,835
82,068
d
2015-53
,
MI
,
IO,
4
%
,
4/16/45
.........................................
148,629
29,495
d
2021-7
,
MI
,
IO,
2.5
%
,
1/20/51
.........................................
867,581
129,653
d,e
2017-H06
,
MI
,
IO,
FRN
,
2.235
%
,
2/20/67
................................
329,193
13,776
d,e
2017-H10
,
MI
,
IO,
FRN
,
1.843
%
,
4/20/67
................................
264,430
7,810
a,d
2020-112
,
MS
,
IO,
FRN
,
2.452
%
,
(
1-month
SOFR
+
6.186
%
),
8/20/50
..........
1,162,265
163,752
d
2020-123
,
NI
,
IO,
2.5
%
,
8/20/50
.......................................
529,440
78,582
d
2021-76
,
NI
,
IO,
3
%
,
8/20/50
.........................................
1,006,290
163,750
d,e
2016-H23
,
NI
,
IO,
FRN
,
2.306
%
,
10/20/66
...............................
319,799
15,793
d,e
2017-H08
,
NI
,
IO,
FRN
,
2.192
%
,
3/20/67
................................
218,738
6,900
d
2013-6
,
OI
,
IO,
5
%
,
1/20/43
..........................................
38,482
7,715
d,e
2016-H07
,
PI
,
IO,
FRN
,
2.247
%
,
3/20/66
................................
333,917
21,226
a
2023-66
,
PS
,
FRN
,
5.581
%
,
(
30-day
SOFR
Average
+
15.375
%
),
5/20/53
........
162,265
160,385
d
2013-51
,
QI
,
IO,
5
%
,
2/20/43
.........................................
74,163
7,760
d,e
2016-H18
,
QI
,
IO,
FRN
,
2.691
%
,
6/20/66
................................
245,562
13,099
a,d
2023-19
,
S
,
IO,
FRN
,
2.202
%
,
(
1-month
SOFR
+
5.936
%
),
11/20/49
............
1,702,705
194,381
a,d
2022-153
,
S
,
IO,
FRN
,
2.132
%
,
(
30-day
SOFR
Average
+
6.05
%
),
5/20/50
.......
1,240,448
131,653
a,d
2024-11
,
S
,
IO,
FRN
,
2.482
%
,
(
30-day
SOFR
Average
+
6.4
%
),
1/20/54
.........
1,939,533
121,226
a,d
2013-87
,
SA
,
IO,
FRN
,
2.352
%
,
(
1-month
SOFR
+
6.086
%
),
6/20/43
...........
439,208
51,476
a,d
2020-47
,
SA
,
IO,
FRN
,
2.152
%
,
(
1-month
SOFR
+
5.886
%
),
5/20/44
...........
355,631
38,578
a,d
2019-121
,
SD
,
IO,
FRN
,
2.152
%
,
(
1-month
SOFR
+
5.886
%
),
10/20/49
.........
211,842
25,876
a,d
2019-125
,
SG
,
IO,
FRN
,
2.202
%
,
(
1-month
SOFR
+
5.936
%
),
10/20/49
.........
528,553
61,931
a,d
2022-209
,
SG
,
IO,
FRN
,
1.682
%
,
(
30-day
SOFR
Average
+
5.6
%
),
12/20/52
......
3,855,454
234,974
a,d
2011-156
,
SK
,
IO,
FRN
,
2.752
%
,
(
1-month
SOFR
+
6.486
%
),
4/20/38
...........
1,202,617
134,961
a,d
2021-98
,
SK
,
IO,
FRN
,
2.452
%
,
(
1-month
SOFR
+
6.186
%
),
6/20/51
...........
699,830
95,434
a,d
2023-13
,
SL
,
IO,
FRN
,
2.332
%
,
(
30-day
SOFR
Average
+
6.25
%
),
1/20/53
.......
916,606
63,966
a,d
2013-182
,
SP
,
IO,
FRN
,
2.852
%
,
(
1-month
SOFR
+
6.586
%
),
12/20/43
..........
94,070
13,308
a,d
2023-20
,
SP
,
IO,
FRN
,
3.082
%
,
(
30-day
SOFR
Average
+
7
%
),
2/20/53
.........
1,847,513
137,958
a,d
2019-110
,
SQ
,
IO,
FRN
,
2.202
%
,
(
1-month
SOFR
+
5.936
%
),
9/20/49
..........
518,957
59,035
d,e
2015-H23
,
TI
,
IO,
FRN
,
1.989
%
,
9/20/65
................................
155,638
6,313
d
2020-162
,
UI
,
IO,
2.5
%
,
10/20/50
......................................
790,200
115,174
d,e
2015-H16
,
XI
,
IO,
FRN
,
2.248
%
,
7/20/65
................................
123,419
7,360
7,750,382
a
a
a
a
a
Total
Agency
Commercial
Mortgage-Backed
Securities
(Cost
$
7,533,591
)
..........
7,750,382
Total
Long
Term
Investments
(Cost
$
59,049,373
)
................................
58,959,382
a
a
a
a
a
Short
Term
Investments
17.3%
Shares
a
Management
Investment
Companies
16.7%
g,h
Putnam
Short
Term
Investment
Fund
,
Class
P
,
3.967
%
.......................
4,299,487
4,299,487
Total
Management
Investment
Companies
(Cost
$
4,299,487
)
.....................
4,299,487
Putnam
Variable
Trust
Schedule
of
Investments
Putnam
VT
Mortgage
Securities
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
11
Short
Term
Investments
(continued)
a
a
Principal
Amount
a
Value
U.S.
Government
and
Agency
Securities
0.6%
i,j
U.S.
Treasury
Bills
,
3
.18
%
,
1/20/26
......................................
$
142,000
$
141,750
Total
U.S.
Government
and
Agency
Securities
(Cost
$
141,714
)
....................
141,750
Total
Short
Term
Investments
(Cost
$
4,441,201
)
.................................
4,441,237
a
Total
Investments
(Cost
$
63,490,574
)
246.3
%
...................................
$63,400,619
Other
Assets,
less
Liabilities
(
146.3
)
%
.........................................
(37,655,600)
Net
Assets
100.0%
...........................................................
$25,745,019
a
The
coupon
rate
shown
represents
the
rate
inclusive
of
any
caps
or
floors,
if
applicable,
in
effect
at
period
end.
b
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
December
31,
2025,
the
aggregate
value
of
these
securities
was
$7,530,001,
representing
29.2%
of
net
assets.
c
Defaulted
security
or
security
for
which
income
has
been
deemed
uncollectible.
See
Note
7
.
d
Investment
in
an
interest-only
security
entitles
holders
to
receive
only
the
interest
payment
on
the
underlying
instruments.
The
principal
amount
shown
is
the
notional
amount
of
the
underlying
instruments.
e
Adjustable
rate
security
with
an
interest
rate
that
is
not
based
on
a
published
reference
index
and
spread.
The
rate
is
based
on
the
structure
of
the
agreement
and
current
market
conditions.
The
coupon
rate
shown
represents
the
rate
at
period
end.
f
Security
purchased
on
a
to-be-announced
(TBA)
basis.
See
Note
1
(
d
).
g
See
Note
3
(
f
)
regarding
investments
in
affiliated
management
investment
companies.
h
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
i
The
rate
shown
represents
the
yield
at
period
end.
j
A
portion
or
all
of
the
security
has
been
segregated
as
collateral
for
certain
derivative
contracts
and
TBA
securities.
At
December
31,
2025,
the
aggregate
value
of
these
securities
pledged
amounted
to
$141,750,
representing
0.6%
of
net
assets.
Putnam
Variable
Trust
Schedule
of
Investments
Putnam
VT
Mortgage
Securities
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
12
At
December
31,
2025
,
the
Fund
had
the
following futures
contracts
outstanding.
See
Note
1
(
e
).
At
December
31,
2025,
the
Fund
had
the
following forward
premium
swap
options contracts
outstanding.
See
Note
1(e).
Futures
Contracts
Description
Type
Number
of
Contracts
Notional
Amount
*
Expiration
Date
Value/
Unrealized
Appreciation
(Depreciation)
Interest
rate
contracts
U.S.
Treasury
10
Year
Ultra
Notes
................
Short
96
$
11,041,500
3/20/26
$
93,701
U.S.
Treasury
2
Year
Notes
.....................
Short
35
7,307,617
3/31/26
3,132
Total
Futures
Contracts
......................................................................
$96,833
*
As
of
period
end.
Forward
Premium
Swap
Option
Contracts
Fixed
right
or
obligation
to
receive
or
(pay)/
Floating
rate
index/Maturity
date
Counter
par
t
y
Expiration
date/strike
Notional/
Contract
amount
*
Premium
receivable/
(payable)
Unrealized
appreciation/
(depreciation)
a
a
a
a
a
3.85%/1-day
SOFR/Feb-27/(Purchased)
BNDP
2/05/26
/
3.85%
7,800,000
$
32,370
$
4,041
3.3%/1-day
SOFR/Feb-27/(Written)
BNDP
2/05/26
/
3.3%
11,700,000
(
25,740
)
20,357
(3.438%)/1-day
SOFR/Mar-31/(Written)
BNDP
3/17/26
/
3.438%
3,928,000
(
26,396
)
(
488
)
(3.788%)/1-day
SOFR/Mar-36/(Purchased)
BNDP
3/17/26
/
3.788%
2,278,200
26,749
(
502
)
3.428%/1-day
SOFR/Aug-37/(Purchased)
BOFA
8/13/27
/
3.428%
1,692,900
97,426
(
69,807
)
(3.428%)/1-day
SOFR/Aug-37/(Purchased)
BOFA
8/13/27
/
3.428%
1,692,900
97,426
7,586
(4.2%)/1-day
SOFR/Aug-60/(Purchased)
BOFA
8/26/30
/
4.2%
175,700
21,910
(
672
)
4.2%/1-day
SOFR/Aug-60/(Purchased)
BOFA
8/26/30
/
4.2%
175,700
21,910
(
3,958
)
(4.608%)/1-day
SOFR/May-56/(Purchased)
CITI
5/26/26
/
4.608%
178,500
6,479
(
5,054
)
3.39%/1-day
SOFR/Oct-28/(Written)
CITI
10/06/26
/
3.39%
10,000,000
(
83,000
)
17,065
(3.4%)/1-day
SOFR/Oct-28/(Purchased)
CITI
10/06/26
/
3.4%
10,000,000
45,000
(
3,968
)
(3.95%)/1-day
SOFR/Mar-37/(Purchased)
CITI
3/29/27
/
3.95%
2,319,100
107,954
(
38,989
)
3.45%/1-day
SOFR/Mar-37/(Purchased)
CITI
3/29/27
/
3.45%
2,319,100
102,968
(
70,914
)
4.33%/1-day
SOFR/May-52/(Purchased)
DBAB
5/19/32
/
4.33%
614,600
76,979
(
18,727
)
(4.33%)/1-day
SOFR/May-52/(Purchased)
DBAB
5/19/32
/
4.33%
614,600
76,979
(
5,800
)
(4.825%)/1-day
SOFR/May-57/(Purchased)
NATW
4/30/27
/
4.825%
1,892,100
68,494
(
21,355
)
Unrealized
appreciation
49,049
Unrealized
(depreciation)
(240,234)
Total
$(191,185)
*
In
U.S.
dollars
unless
otherwise
indicated.
Putnam
VT
Mortgage
Securities
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
13
Putnam
Variable
Trust
Schedule
of
Investments
At
December
31,
2025
,
the
Fund
had
the
following credit
default
swap
contracts outstanding.
See
Note
1
(
e
).
Credit
Default
Swap
Contracts
Description
Periodic
Payment
Rate
Received
(Paid)
Payment
Frequency
Counter-
party
Maturity
Date
Notional
Amount
a
Value
Upfront
Payments
(Receipts)
Unrealized
Appreciation
(Depreciation)
Rating
b
OTC
Swap
Contracts
Contracts
to
Buy
Protection
c
Traded
Index
CMBX.NA.A.15
.
(2.00)%
Monthly
JPHQ
11/18/64
4,000
$
156
$
364
$
(
208
)
CMBX.NA.BB.10
(5.00)%
Monthly
CITI
11/17/59
131,000
68,688
57,068
11,620
CMBX.NA.BB.13
(5.00)%
Monthly
GSCO
12/16/72
183,000
67,633
68,210
(
577
)
CMBX.NA.BB.6
.
(5.00)%
Monthly
GSCO
5/11/63
40,000
3,081
1,802
1,279
CMBX.NA.BB.6
.
(5.00)%
Monthly
JPHQ
5/11/63
10,000
770
5,148
(
4,378
)
CMBX.NA.BB.8
.
(5.00)%
Monthly
CITI
10/17/57
35,000
15,189
15,155
34
CMBX.NA.BB.8
.
(5.00)%
Monthly
GSCO
10/17/57
13,000
5,642
5,308
334
CMBX.NA.BB.8
.
(5.00)%
Monthly
MSCO
10/17/57
6,000
2,604
2,635
(
31
)
CMBX.
NA.BBB-.10
..
(3.00)%
Monthly
CITI
11/17/59
46,000
10,092
13,826
(
3,734
)
CMBX.
NA.BBB-.10
..
(3.00)%
Monthly
MSCO
11/17/59
219,000
48,046
70,816
(
22,770
)
CMBX.
NA.BBB-.11
..
(3.00)%
Monthly
GSCO
11/18/54
189,000
23,055
23,604
(
549
)
CMBX.
NA.BBB-.12
..
(3.00)%
Monthly
CITI
8/17/61
285,000
49,852
80,881
(
31,029
)
CMBX.
NA.BBB-.12
..
(3.00)%
Monthly
GSCO
8/17/61
63,000
11,019
11,434
(
415
)
CMBX.
NA.BBB-.13
..
(3.00)%
Monthly
GSCO
12/16/72
126,000
24,220
26,419
(
2,199
)
CMBX.
NA.BBB-.13
..
(3.00)%
Monthly
JPHQ
12/16/72
81,000
15,569
15,690
(
121
)
CMBX.NA.BBB-.8
(3.00)%
Monthly
CITI
10/17/57
84,000
14,894
16,227
(
1,333
)
CMBX.NA.BBB-.8
(3.00)%
Monthly
MSCO
10/17/57
82,000
14,539
16,880
(
2,341
)
CMBX.NA.BBB-.9
(3.00)%
Monthly
MSCO
9/17/58
63,000
12,393
11,316
1,077
Contracts
to
Sell
Protection
c,d
Traded
Index
CMBX.NA.A.13
.
2.00%
Monthly
JPHQ
12/16/72
1,000
(
63
)
(
81
)
18
Investment
Grade
CMBX.NA.A.13
.
2.00%
Monthly
MLCO
12/16/72
174,000
(
10,980
)
(
22,920
)
11,940
Investment
Grade
CMBX.NA.A.15
.
2.00%
Monthly
MLCO
11/18/64
4,000
(
156
)
(
65
)
(
91
)
Investment
Grade
CMBX.NA.BB.10
5.00%
Monthly
JPHQ
11/17/59
25,000
(
13,109
)
(
2,006
)
(
11,103
)
Non-
Investment
Grade
CMBX.NA.BB.13
5.00%
Monthly
CITI
12/16/72
118,000
(
43,611
)
(
48,805
)
5,194
Non-
Investment
Grade
CMBX.NA.BB.6
.
5.00%
Monthly
CITI
5/11/63
96,000
(
7,395
)
(
16,692
)
9,297
Non-
Investment
Grade
CMBX.NA.BB.6
.
5.00%
Monthly
GSCO
5/11/63
16,000
(
1,233
)
(
2,778
)
1,545
Non-
Investment
Grade
Putnam
Variable
Trust
Schedule
of
Investments
Putnam
VT
Mortgage
Securities
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
14
At
December
31,
2025
,
the
Fund
had
the
following
interest
rate
swap
contracts
outstanding.
See
Note
1
(
e
).
Credit
Default
Swap
Contracts
(continued)
Description
Periodic
Payment
Rate
Received
(Paid)
Payment
Frequency
Counter-
party
Maturity
Date
Notional
Amount
a
Value
Upfront
Payments
(Receipts)
Unrealized
Appreciation
(Depreciation)
Rating
b
OTC
Swap
Contracts
(continued)
Contracts
to
Sell
Protection
c,d
(continued)
Traded
Index
(continued)
CMBX.NA.BB.6
.
5.00%
Monthly
MLCO
5/11/63
3,000
$
(
231
)
$
(
335
)
$
104
Non-
Investment
Grade
CMBX.NA.BB.6
.
5.00%
Monthly
MSCO
5/11/63
143,000
(
11,016
)
(
25,456
)
14,440
Non-
Investment
Grade
CMBX.
NA.BBB-.16
..
3.00%
Monthly
CITI
4/17/65
14,000
(
2,332
)
(
3,182
)
850
Investment
Grade
CMBX.
NA.BBB-.16
..
3.00%
Monthly
GSCO
4/17/65
9,000
(
1,499
)
(
1,848
)
349
Investment
Grade
CMBX.
NA.BBB-.16
..
3.00%
Monthly
MSCO
4/17/65
7,000
(
1,166
)
(
1,591
)
425
Investment
Grade
Total
OTC
Swap
Contracts
..............................................
$294,651
$317,024
$(22,373)
Total
Credit
Default
Swap
Contracts
....................................
$294,651
$
317,024
$(22,373)
a
In
U.S.
dollars
unless
otherwise
indicated.
For
contracts
to
sell
protection,
the
notional
amount
is
equal
to
the
maximum
potential
amount
of
the
future
payments
and
no
recourse
provisions
have
been
entered
into
in
association
with
the
contracts.
b
Based
on
Standard
and
Poor's
(S&P)
Rating
for
single
name
swaps
and
internal
ratings
for
index
swaps.
Internal
ratings
based
on
mapping
into
equivalent
ratings
from
external
vendors.
c
Performance
triggers
for
settlement
of
contract
include
default,
bankruptcy
or
restructuring
for
single
name
swaps,
and
failure
to
pay
or
bankruptcy
of
the
underlying
securities
for
traded
index
swaps.
d
The
fund
enters
contracts
to
sell
protection
to
create
a
long
credit
position.
Interest
Rate
Swap
Contracts
Description
Payment
Frequency
Maturity
Date
Notional
Amount
*
Value
Upfront
Payments
(Receipts)
Unrealized
Appreciation
(Depreciation)
aa
aa
aa
aa
Centrally
Cleared
Swap
Contracts
Receive
Floating
1-day
SOFR
..............
Annual
Pay
Fixed
3.58%
....
Annual
9/17/27
27,207,000
$
(
73,203
)
$
(
37,601
)
$
(
35,602
)
Receive
Floating
1-day
SOFR
..............
Annual
Pay
Fixed
3.13%
....
Annual
12/17/27
3,963,000
15,011
11,640
3,371
Receive
Floating
1-day
SOFR
..............
Annual
Pay
Fixed
3.3%
.....
Annual
3/18/28
486,000
(
181
)
(
622
)
441
Receive
Fixed
3.63%
..
Annual
Pay
Floating
1-day
SOFR
............
Annual
9/17/30
7,171,000
47,517
53,246
(
5,729
)
Putnam
VT
Mortgage
Securities
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
15
Putnam
Variable
Trust
Schedule
of
Investments
Interest
Rate
Swap
Contracts
(continued)
Description
Payment
Frequency
Maturity
Date
Notional
Amount*
Value
Upfront
Payments
(Receipts)
Unrealized
Appreciation
(Depreciation)
aa
aa
aa
aa
Centrally
Cleared
Swap
Contracts
(continued)
Receive
Floating
1-day
SOFR
..............
Annual
Pay
Fixed
3.18%
....
Annual
12/17/30
2,614,000
$
34,402
$
24,767
$
9,635
Receive
Floating
1-day
SOFR
..............
Annual
Pay
Fixed
3.45%
....
Annual
3/18/31
276,000
260
291
(
31
)
Receive
Fixed
3.833%
.
Annual
Pay
Floating
1-day
SOFR
............
Annual
9/10/35
334,100
1,078
-
1,078
Receive
Fixed
3.88%
..
Annual
Pay
Floating
1-day
SOFR
............
Annual
9/17/35
2,533,000
18,452
39,966
(
21,514
)
Receive
Floating
1-day
SOFR
..............
Annual
Pay
Fixed
3.53%
....
Annual
12/17/35
1,829,000
41,121
35,279
5,842
Receive
Floating
1-day
SOFR
..............
Annual
Pay
Fixed
3.75%
....
Annual
3/18/36
301,000
1,659
1,164
495
Receive
Fixed
4.03%
..
Annual
Pay
Floating
1-day
SOFR
............
Annual
9/17/55
593,000
(
14,246
)
3,757
(
18,003
)
Receive
Fixed
3.88%
..
Annual
Pay
Floating
1-day
SOFR
............
Annual
12/17/55
61,000
(
3,010
)
(
2,016
)
(
994
)
Receive
Fixed
4.1%
...
Annual
Pay
Floating
1-day
SOFR
............
Annual
3/18/56
344,000
(
4,175
)
(
1,586
)
(
2,589
)
Total
Interest
Rate
Swap
Contracts
.................................
$64,685
$
128,285
$(63,600)
*
In
U.S.
dollars
unless
otherwise
indicated.
See
Note
8
regarding
other
derivative
information.
See
A
bbreviations
on
page
33
.
Putnam
Variable
Trust
Financial
Statements
Statement
of
Assets
and
Liabilities
December
31,
2025
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
16
Putnam
VT
Mortgage
Securities
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$59,191,087
Cost
-
Non-controlled
affiliates
(Note
3
f
)
........................................................
4,299,487
Value
-
Unaffiliated
issuers
..................................................................
$59,101,132
Value
-
Non-controlled
affiliates
(Note
3
f
)
........................................................
4,299,487
Cash
....................................................................................
123,288
Receivables:
Capital
shares
sold
........................................................................
15,840
Dividends
and
interest
.....................................................................
230,267
Affiliates
................................................................................
53,133
Deposits
with
brokers
for:
Futures
contracts
........................................................................
286,800
Centrally
cleared
swap
contracts
............................................................
265,852
Variation
margin
on
futures
contracts
...........................................................
20,461
OTC
swap
contracts
(upfront
payments
)
..........................................................
442,783
Unrealized
appreciation
on
forward
premium
swap
option
contracts
.....................................
49,049
Unrealized
appreciation
on
OTC
swap
contracts
....................................................
58,506
Prepaid
expenses
..........................................................................
24,448
Total
assets
..........................................................................
64,971,046
Liabilities:
Payables:
Payable
for
purchases
of
TBA
securities
(Note
1
d
)
................................................
38,484,121
Capital
shares
redeemed
...................................................................
5,309
Administrative
fees
........................................................................
228
Distribution
fees
..........................................................................
2,725
Transfer
agent
fees
........................................................................
3,083
Trustees'
fees
and
expenses
.................................................................
40,490
Variation
margin
on
centrally
cleared
swap
contracts
...............................................
9,569
Deposits
from
brokers
for:
OTC
derivative
contracts
..................................................................
120,000
OTC
swap
contracts
(upfront
receipts
)
...........................................................
125,759
Unrealized
depreciation
on
OTC
swap
contracts
....................................................
80,879
Unrealized
depreciation
on
forward
premium
swap
option
contracts
.....................................
240,234
Accrued
expenses
and
other
liabilities
...........................................................
113,630
Total
liabilities
.........................................................................
39,226,027
Net
assets,
at
value
.................................................................
$25,745,019
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$53,911,076
Total
distributable
earnings
(losses)
.............................................................
(28,166,057)
Net
assets,
at
value
.................................................................
$25,745,019
Putnam
Variable
Trust
Financial
Statements
Statement
of
Assets
and
Liabilities
(continued)
December
31,
2025
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
17
Putnam
VT
Mortgage
Securities
Fund
Class
IA:
Net
assets,
at
value
.......................................................................
$12,988,471
Shares
outstanding
........................................................................
2,085,399
Net
asset
value
and
maximum
offering
price
per
share
a
.............................................
$6.23
Class
IB:
Net
assets,
at
value
.......................................................................
$12,756,548
Shares
outstanding
........................................................................
2,058,645
Net
asset
value
and
maximum
offering
price
per
share
a
.............................................
$6.20
a
Net
asset
value
per
share
may
not
recalculate
due
to
rounding.
Putnam
Variable
Trust
Financial
Statements
Statement
of
Operations
for
the
year
ended
December
31,
2025
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
18
Putnam
VT
Mortgage
Securities
Fund
Investment
income:
Dividends:
Non-controlled
affiliates
(Note
3
f
)
.............................................................
$110,366
Interest:
Unaffiliated
issuers
........................................................................
1,658,214
Total
investment
income
...................................................................
1,768,580
Expenses:
Management
fees
(Note
3
a
)
...................................................................
98,183
Administrative
fees
(Note
3
b
)
..................................................................
479
Distribution
fees:
(Note
3c
)
Class
IB
................................................................................
33,433
Transfer
agent
fees:
(Note
3d
)
Class
IA
................................................................................
9,513
Class
IB
................................................................................
9,034
Custodian
fees
(Note
4
)
......................................................................
10,941
Reports
to
shareholders
fees
..................................................................
22,960
Professional
fees
...........................................................................
104,751
Trustees'
fees
and
expenses
(Note
3
e
)
...........................................................
831
Other
....................................................................................
6,008
Total
expenses
.........................................................................
296,133
Expense
reductions
(Note
4
)
...............................................................
(213)
Expenses
waived/paid
by
affiliates
(Note
3
f
and
3
g
)
..............................................
(130,435)
Net
expenses
.........................................................................
165,485
Net
investment
income
................................................................
1,603,095
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
(21,161)
Forward
premium
swap
option
contracts
........................................................
30,045
Futures
contracts
.........................................................................
(305,528)
TBA
sale
commitments
.....................................................................
159,101
Swap
contracts
...........................................................................
(193,316)
Net
realized
gain
(loss)
..................................................................
(330,859)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
1,658,887
Translation
of
other
assets
and
liabilities
denominated
in
foreign
currencies
..............................
(14)
Forward
premium
swap
option
contracts
........................................................
(355,358)
Futures
contracts
.........................................................................
(173,754)
TBA
sale
commitments
.....................................................................
(16,659)
Swap
contracts
...........................................................................
(55,560)
Net
change
in
unrealized
appreciation
(depreciation)
............................................
1,057,542
Net
realized
and
unrealized
gain
(loss)
............................................................
726,683
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$2,329,778
Putnam
Variable
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
19
Putnam
VT
Mortgage
Securities
Fund
Year
Ended
December
31,
2025
Year
Ended
December
31,
2024
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$1,603,095
$2,267,264
Net
realized
gain
(loss)
.................................................
(330,859)
(731,941)
Net
change
in
unrealized
appreciation
(depreciation)
...........................
1,057,542
229,316
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
2,329,778
1,764,639
Distributions
to
shareholders:
Class
IA
............................................................
(1,131,019)
(1,002,273)
Class
IB
............................................................
(1,135,131)
(1,100,133)
Total
distributions
to
shareholders
..........................................
(2,266,150)
(2,102,406)
Capital
share
transactions:
(Note
2
)
Class
IA
............................................................
(958,343)
(576,776)
Class
IB
............................................................
(654,504)
(645,736)
Total
capital
share
transactions
............................................
(1,612,847)
(1,222,512)
Net
increase
(decrease)
in
net
assets
...................................
(1,549,219)
(1,560,279)
Net
assets:
Beginning
of
year
.......................................................
27,294,238
28,854,517
End
of
year
...........................................................
$25,745,019
$27,294,238
Putnam
Variable
Trust
Notes
to
Financial
Statements
Putnam
VT
Mortgage
Securities
Fund
20
franklintempleton.com
Annual
Report
1.
Organization
and
Significant
Accounting
Policies
Putnam
Variable
Trust
(Trust)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-end
management
investment
company,
consisting
of twenty separate
funds.
The Trust
follows the
accounting
and
reporting
guidance
in
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standards
Codification
Topic
946,
Financial
Services
-
Investment
Companies
(ASC
946)
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP),
including,
but
not
limited
to,
ASC
946.
Putnam
VT
Mortgage
Securities
Fund
(Fund)
is
included
in
this
report.
Shares
of
the
Fund
are
generally
sold
only
to
insurance
company
separate
accounts
to
fund
the
benefits
of
variable
life
insurance
policies
or
variable
annuity
contracts. The
Fund
offers two classes
of
shares:
Class
IA
and
Class
IB.
Each
class
of
shares
may
differ
by
its
distribution
fees,
voting
rights
on
matters
affecting
a
single
class
and
its
exchange
privilege.
The
following
summarizes
the
Fund
's
significant
accounting
policies.
a.
Financial
Instrument
Valuation
The
Fund's
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The
Fund
calculates
the
net
asset
value
(NAV)
per
share
each business
day as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the Trust's
Board
of
Trustees
(the
Board),
the
Board
has
designated
the
Fund's
investment
manager
as
the
valuation
designee
and
has
responsibility
for
oversight
of
valuation.
The
investment
manager
is
assisted
by
the
Fund's
administrator
in
performing
this
responsibility,
including
leading
the
cross-
functional
Valuation
Committee
(VC).
The
Fund
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value.
Debt
securities
generally
trade
in
the over-the-counter
(OTC)
market
rather
than
on
a
securities
exchange.
The
Fund's
pricing
services
use
multiple
valuation
techniques
to
determine
fair
value.
In
instances
where
sufficient
market
activity
exists,
the
pricing
services
may
utilize
a
market-based
approach
through
which
quotes
from
market
makers
are
used
to
determine
fair
value.
In
instances
where
sufficient
market
activity
may
not
exist
or
is
limited,
the
pricing
services
also
utilize
proprietary
valuation
models
which
may
consider
market
characteristics
such
as
benchmark
yield
curves,
credit
spreads,
estimated
default
rates,
anticipated
market
interest
rate
volatility,
coupon
rates,
anticipated
timing
of
principal
repayments,
underlying
collateral,
and
other
unique
security
features
in
order
to
estimate
the
relevant
cash
flows,
which
are
then
discounted
to
calculate
the
fair
value.
Securities
denominated
in
a
foreign
currency
are
converted
into
their
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m.
Eastern
time
on
the
date
that
the
values
of
the
foreign
debt
securities
are
determined.
Investments
in open-end mutual
funds
are
valued
at
the
closing
NAV.
Derivative
financial
instruments
listed
on
an
exchange
are
valued
at
the
official
closing
price
of
the
day.
Certain
derivative
financial
instruments
are
centrally
cleared
or
trade
in
the
OTC
market.
The
Fund's
pricing
services
use
various
techniques
including
industry
standard
option
pricing
models
and
proprietary
discounted
cash
flow
models
to
determine
the
fair
value
of
those
instruments.
The
Fund's
net
benefit
or
obligation
under
the
derivative
contract,
as
measured
by
the
fair
value
of
the
contract,
is
included
in
net
assets.
The
Fund
has
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the Fund
primarily
employs
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
b.
Foreign
Currency
Translation
Portfolio
securities
and
other
assets
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
based
on
the
exchange
rate
of
such
currencies
Putnam
Variable
Trust
Notes
to
Financial
Statements
21
franklintempleton.com
Annual
Report
Putnam
VT
Mortgage
Securities
Fund
(continued)
against
U.S.
dollars
on
the
date
of
valuation.
The
Fund
may
enter
into
foreign
currency
exchange
contracts
to
facilitate
transactions
denominated
in
a
foreign
currency.
Purchases
and
sales
of
securities,
income
and
expense
items
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
at
the
exchange
rate
in
effect
on
the
transaction
date.
Portfolio
securities
and
assets
and
liabilities
denominated
in
foreign
currencies
contain
risks
that
those
currencies
will
decline
in
value
relative
to
the
U.S.
dollar.
Occasionally,
events
may
impact
the
availability
or
reliability
of
foreign
exchange
rates
used
to
convert
the
U.S.
dollar
equivalent
value.
If
such
an
event
occurs,
the
foreign
exchange
rate
will
be
valued
at
fair
value
using
procedures
established
and
approved
by
the
Board.
The
Fund
does
not
separately
report
the
effect
of
changes
in
foreign
exchange
rates
from
changes
in
market
prices
on
securities
held.
Such
changes
are
included
in
net
realized
and
unrealized
gain
or
loss
from
investments
in
the
Statement of
Operations.
Realized
foreign
exchange
gains
or
losses
arise
from
sales
of
foreign
currencies,
currency
gains
or
losses
realized
between
the
trade
and
settlement
dates
on
securities
transactions
and
the
difference
between
the
recorded
amounts
of
dividends,
interest,
and
foreign
withholding
taxes
and
the
U.S.
dollar
equivalent
of
the
amounts
actually
received
or
paid.
Net
unrealized
foreign
exchange
gains
and
losses
arise
from
changes
in
foreign
exchange
rates
on
foreign
denominated
assets
and
liabilities
other
than
investments
in
securities
held
at
the
end
of
the
reporting
period.
c.
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.
d.
Securities
Purchased
on
a
When-Issued,
Forward Commitment or
Delayed
Delivery
Basis
and
TBA
Basis
The
Fund
may
purchase
securities
on
a when-issued,
forward
commitment
or
delayed
delivery
and to-be-
announced
(TBA)
basis,
with
payment
and
delivery
scheduled
for
a
future
date.
These
transactions
are
subject
to
market
fluctuations
and
are
subject
to
the
risk
that
the
value
at
delivery
may
be
more
or
less
than
the
trade
date
purchase
price.
Although
the
Fund
will
generally
purchase
these
securities
with
the
intention
of
holding
the
securities, it
may
sell
the
securities
before
the
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
in
the
Financial
Instrument
Valuation
note.
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,
1.
Organization
and
Significant
Accounting
Policies
(continued)
b.
Foreign
Currency
Translation
(continued)
Putnam
Variable
Trust
Notes
to
Financial
Statements
22
franklintempleton.com
Annual
Report
Putnam
VT
Mortgage
Securities
Fund
(continued)
the
investment
manager
will
determine
whether
to
take
delivery
of
the
underlying
securities
or
to
dispose
of
the
TBA
commitments
prior
to
settlement.
e.
Derivative
Financial
Instruments
The
Fund invested
in
derivative
financial
instruments
in
order
to
manage
risk
or
gain
exposure
to
various
other
investments
or
markets.
Derivatives
are
financial
contracts
based
on
an
underlying
or
notional
amount,
require
no
initial
investment
or
an
initial
net
investment
that
is
smaller
than
would
normally
be
required
to
have
a
similar
response
to
changes
in
market
factors,
and
require
or
permit
net
settlement.
Derivatives
contain
various
risks
including
the
potential
inability
of
the
counterparty
to
fulfill
their
obligations
under
the
terms
of
the
contract,
the
potential
for
an
illiquid
secondary
market,
and/or
the
potential
for
market
movements
which
expose
the
Fund
to
gains
or
losses
in
excess
of
the
amounts
shown
in
the
Statement
of
Assets
and
Liabilities.
Realized
gain
and
loss
and
unrealized
appreciation
and
depreciation
on
these
contracts
for
the
period
are
included
in
the
Statement
of
Operations.
Derivative
counterparty
credit
risk
is
managed
through
a
formal
evaluation
of
the
creditworthiness
of
all
potential
counterparties.
The
Fund
attempts
to
reduce
its
exposure
to
counterparty
credit
risk
on
OTC
derivatives,
whenever
possible,
by
entering
into
International
Swaps
and
Derivatives
Association
(ISDA)
master
agreements
with
certain
counterparties.
These
agreements
contain
various
provisions,
including
but
not
limited
to
collateral
requirements,
events
of
default,
or
early
termination.
Termination
events
applicable
to
the
counterparty
include
certain
deteriorations
in
the
credit
quality
of
the
counterparty.
Termination
events
applicable
to
the
Fund
include
failure
of
the
Fund
to
maintain
certain
net
asset
levels
and/or
limit
the
decline
in
net
assets
over
various
periods
of
time.
In
the
event
of
default
or
early
termination,
the
ISDA
master
agreement
gives
the
non-defaulting
party
the
right
to
net
and
close-out
all
transactions
traded,
whether
or
not
arising
under
the
ISDA
agreement,
to
one
net
amount
payable
by
one
counterparty
to
the
other.
However,
absent
an
event
of
default
or
early
termination,
OTC
derivative
assets
and
liabilities
are
presented
gross
and
not
offset
in
the
Statement
of
Assets
and
Liabilities.
Early
termination
by
the
counterparty
may
result
in
an
immediate
payment
by
the
Fund
of
any
net
liability
owed
to
that
counterparty
under
the
ISDA
agreement.
Collateral
requirements
differ
by
type
of
derivative.
Collateral
or
initial
margin
requirements
are
set
by
the
broker
or
exchange
clearing
house
for
exchange
traded
and
centrally
cleared
derivatives.
Initial
margin
deposited
is
held
at
the
exchange
or
at
the
broker and
can
be
in
the
form
of
cash
and/or
securities.
For
OTC
derivatives
traded
under
an
ISDA
master
agreement,
posting
of
collateral
is
required
by
either
the
Fund
or
the
applicable
counterparty
if
the
total
net
exposure
of
all
OTC
derivatives
with
the
applicable
counterparty
exceeds
the
minimum
transfer
amount,
which
typically
ranges
from
$100,000
to
$250,000,
and
can
vary
depending
on
the
counterparty
and
the
type
of agreement.
Generally,
collateral
is
determined
at
the
close
of
Fund
business
each
day
and
any
additional
collateral
required
due
to
changes
in
derivative
values
may
be
delivered
by
the
Fund
or
the
counterparty
the
next
business
day,
or
within
a
few
business
days.
Collateral
pledged
and/or
received
by
the
Fund
for
OTC
derivatives,
if
any,
is
held
in
segregated
accounts
with
the
Fund's
custodian/counterparty
broker
and
can
be
in
the
form
of
cash
and/or
securities.
Unrestricted
cash
may
be
invested
according
to
the
Fund's
investment
objectives.
To
the
extent
that
the
amounts
due
to
the
Fund
from
its
counterparties
are
not
subject
to
collateralization
or
are
not
fully
collateralized,
the
Fund
bears
the
risk
of
loss
from
counterparty
non-performance.
The
Fund
entered
into
exchange
traded
futures
contracts
primarily
to
manage
and/or
gain
exposure
to
interest
rate
risk.
A
futures
contract
is
an
agreement
between
the
Fund
and
a
counterparty
to
buy
or
sell
an
asset
at
a
specified
price
on
a
future
date.
Required
initial
margins
are
pledged
by
the
Fund,
and
the
daily
change
in
fair
value
is
accounted
for
as
a
variation
margin
payable
or
receivable
in
the
Statement
of
Assets
and
Liabilities.
Futures
contracts
outstanding
at
period
end,
if
any,
are
listed
in
the
Fund's
Schedule
of
Investments.
The
Fund
entered
into
credit
default
swap
contracts
primarily
to
manage
and/or
gain
exposure
to
credit
risk.
A
credit
default
swap
is
an
agreement
between
the
Fund
and
a
counterparty
whereby
the
buyer
of
the
contract
receives
credit
protection
and
the
seller
of
the
contract
guarantees
the
credit
worthiness
of
a
referenced
debt
obligation.
These
1.
Organization
and
Significant
Accounting
Policies
(continued)
d.
Securities
Purchased
on
a
When-Issued,
Forward Commitment or
Delayed
Delivery
Basis
and
TBA
Basis
(continued)
Putnam
Variable
Trust
Notes
to
Financial
Statements
23
franklintempleton.com
Annual
Report
Putnam
VT
Mortgage
Securities
Fund
(continued)
agreements
may
be
privately
negotiated
in
the
over-the-
counter
market
(OTC
credit
default
swaps)
or
may
be
executed
in
a
multilateral
trade
facility
platform,
such
as
a
registered
exchange
(centrally
cleared
credit
default
swaps).
The
underlying
referenced
debt
obligation
may
be
a
single
issuer
of
corporate
or
sovereign
debt,
a
credit
index,
a
basket
of
issuers
or
indices,
or
a
tranche
of
a
credit
index
or
basket
of
issuers
or
indices.
In
the
event
of
a
default
of
the
underlying
referenced
debt
obligation,
the
buyer
is
entitled
to
receive
the
notional
amount
of
the
credit
default
swap
contract
from
the
seller
in
exchange
for
the
referenced
debt
obligation,
a
net
settlement
amount
equal
to
the
notional
amount
of
the
credit
default
swap
less
the
recovery
value
of
the
referenced
debt
obligation,
or
other
agreed
upon
amount.
For
centrally
cleared
credit
default
swaps,
required
initial
margins
are
pledged
by
the
Fund,
and
the
daily
change
in
fair
value
is
accounted
for
as
a
variation
margin
payable
or
receivable
in
the
Statement
of
Assets
and
Liabilities.
Over
the
term
of
the
contract,
the
buyer
pays
the
seller
a
periodic
stream
of
payments,
provided
that
no
event
of
default
has
occurred.
Such
periodic
payments
are
accrued
daily
as
an
unrealized
appreciation or
depreciation
until
the
payments
are
made,
at
which
time
they
are
realized.
Upfront
payments
and
receipts
are
reflected
in
the Statement
of
Assets
and
Liabilities
and
represent
compensating
factors
between
stated
terms
of
the
credit
default
swap
agreement
and
prevailing
market
conditions
(credit
spreads
and
other
relevant
factors).
These
upfront
payments
and
receipts
are
amortized
over
the
term
of
the
contract
as
a
realized
gain
or
loss
in
the Statement
of
Operations.
Credit
default
swap
contracts
outstanding
at
period
end,
if
any,
are
listed
in
the
Fund's
Schedule
of
Investments.
The
Fund entered
into
interest
rate
swap
contracts
primarily
to
manage
interest
rate
risk.
An
interest
rate
swap
is
an
agreement
between
the
Fund
and
a
counterparty
to
exchange
cash
flows
based
on
the
difference
between
two
interest
rates,
applied
to
a
notional
amount.
These
agreements
may
be
privately
negotiated
in
the
over-the-
counter
market
(OTC
interest
rate
swaps)
or
may
be
executed
on
a
registered
exchange
(centrally
cleared
interest
rate
swaps).
For
centrally
cleared
interest
rate
swaps,
required
initial
margins
are
pledged
by
the
Fund,
and
the
daily
change
in
fair
value
is
accounted
for
as
a
variation
margin
payable
or
receivable
in
the
Statement
of
Assets
and
Liabilities.
Over
the
term
of
the
contract,
contractually
required
payments
to
be
paid
and
to
be
received
are
accrued
daily
and
recorded
as
unrealized
appreciation
or
depreciation
until
the
payments
are
made,
at
which
time
they
are
realized.
Interest
rate
swap
contracts
outstanding
at
period
end,
if
any,
are
listed
in
the
Fund's
Schedule
of
Investments.
The
Fund
purchased
or
wrote
OTC
option
contracts
primarily
to
manage
and/or
gain exposure
to
interest
rate
risk.
An
option
is
a
contract
entitling
the
holder
to
purchase
or
sell
a
specific
amount
of
shares
or
units
of
an
asset
or
notional
amount
of
a
swap
(swaption),
at
a
specified
price.
When
an
option
is
purchased
or
written,
an
amount
equal
to
the
premium
paid
or
received
is
recorded
as
an
asset
or
liability,
respectively.
Upon
exercise
of
an
option,
the
acquisition
cost
or
sales
proceeds
of
the
underlying
investment
is
adjusted
by
any
premium
received
or
paid.
Upon
expiration
of
an
option,
any
premium
received
or
paid
is
recorded
as
a
realized
gain
or
loss.
Upon
closing
an
option
other
than
through
expiration
or
exercise,
the
difference
between
the
premium
received
or
paid
and
the
cost
to
close
the
position
is
recorded
as
a
realized
gain
or
loss.
Option
contracts
outstanding
at
period
end,
if
any,
are
listed
in
the
Fund's
Schedule
of
Investments.
See
Note
8
regarding
other
derivative
information.
f.
Income
Taxes
It
is the Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. The Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
taxable
income
and
net
realized
gains
to
relieve
it
from
federal
income
and if
applicable,
excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
December
31,
2025, the Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
The
Fund's
federal
and
state
income
and
federal
excise
tax
returns
for
the
prior
three
fiscal
years
are
subject
to
examination
by
the
Internal
Revenue
Service
and
state
departments
of
revenue.
1.
Organization
and
Significant
Accounting
Policies
(continued)
e.
Derivative
Financial
Instruments
(continued)
Putnam
Variable
Trust
Notes
to
Financial
Statements
24
franklintempleton.com
Annual
Report
Putnam
VT
Mortgage
Securities
Fund
(continued)
g.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification basis.
Interest
income
(including
interest
income
from
payment-in-kind
securities,
if
any)
and
estimated
expenses
are
accrued
daily.
Amortization
of
premium
and
accretion
of
discount
on
debt
securities
are
included
in
interest
income.
Paydown
gains
and
losses
are
recorded
as
an
adjustment
to
interest
income.
Dividend
income
is recorded
on
the
ex-dividend
date.
Distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Distributable
earnings are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
Common
expenses
incurred
by
the
Trust
are
allocated
among
the
Funds
based
on
the
ratio
of
net
assets
of
each
Fund
to
the
combined
net
assets
of
the
Trust
or
based
on
the
ratio
of
number
of
shareholders
of
each
Fund
to
the
combined
number
of
shareholders
of
the
Trust.
Fund
specific
expenses
are
charged
directly
to
the
Fund
that
incurred
the
expense.
Realized
and
unrealized
gains
and
losses
and
net
investment
income,
excluding
class
specific
expenses,
are
allocated
daily
to
each
class
of
shares
based
upon
the
relative
proportion
of
net
assets
of
each
class.
Differences
in
per
share
distributions
by
class
are
generally
due
to
differences
in
class
specific
expenses.
h.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
i.
Guarantees
and
Indemnifications
Under
the Trust's
organizational
documents,
its
officers
and trustees
are
indemnified
by
the Trust against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Trust.
Additionally,
in
the
normal
course
of
business,
the Trust,
on
behalf
of
the
Fund, enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The Trust's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the Trust
that
have
not
yet
occurred.
Currently,
the Trust
expects
the
risk
of
loss
to
be
remote.
2.
Shares
of
Beneficial
Interest
At
December
31,
2025,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Fund's
shares
were
as
follows:
Year
Ended
December
31,
2025
Year
Ended
December
31,
2024
Shares
Amount
Shares
Amount
Class
IA
Shares:
Shares
sold
...................................
112,379
$681,942
62,825
$389,785
Shares
issued
in
reinvestment
of
distributions
..........
190,728
1,131,019
167,046
1,002,273
Shares
redeemed
...............................
(449,607)
(2,771,304)
(316,409)
(1,968,834)
Net
increase
(decrease)
..........................
(146,500)
$(958,343)
(86,538)
$(576,776)
1.
Organization
and
Significant
Accounting
Policies
(continued)
Putnam
Variable
Trust
Notes
to
Financial
Statements
25
franklintempleton.com
Annual
Report
Putnam
VT
Mortgage
Securities
Fund
(continued)
3.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and trustees
of
the Fund are
also
officers
and/or directors
of
the
following
subsidiaries:
a.
Management
Fees
The
Fund
pays Advisers
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
(including
open-end
funds
managed
by
affiliates
of
Putnam
Management
that
have
been
deemed
to
be
sponsored
by
Putnam
Management
for
this
purpose)
(excluding
net
assets
of
such
funds
that
are
invested
in,
or
that
are
invested
in
by,
other
such
funds
to
the
extent
necessary
to
avoid
"double
counting"
of
those
assets).
Such
annual
rates
may
vary
as
follows:
For
the
year
ended
December
31,
2025,
the
gross
effective
investment
management
fee
rate
was 0.372%
of
the
Fund's
average daily
net
assets.
Year
Ended
December
31,
2025
Year
Ended
December
31,
2024
Shares
Amount
Shares
Amount
Class
IB
Shares:
Shares
sold
...................................
593,595
$3,624,693
1,277,542
$7,806,150
Shares
issued
in
reinvestment
of
distributions
..........
192,069
1,135,131
183,969
1,100,133
Shares
redeemed
...............................
(885,049)
(5,414,328)
(1,527,957)
(9,552,019)
Net
increase
(decrease)
..........................
(99,385)
$(654,504)
(66,446)
$(645,736)
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Putnam
Investment
Management,
LLC
(Putnam
Management)
Subadvisor
Franklin
Templeton
Investment
Management
Limited
(FTIML)
Subadvisor
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
Principal
underwriter
Putnam
Investor
Services,
Inc.
(PSERV)
Transfer
agent
Annualized
Fee
Rate
Net
Assets
0.550%
of
the
first
$5
billion,
0.500%
of
the
next
$5
billion,
0.450%
of
the
next
$10
billion,
0.400%
of
the
next
$10
billion,
0.350%
of
the
next
$50
billion,
0.330%
of
the
next
$50
billion,
0.320%
of
the
next
$100
billion
and
0.315%
of
any
excess
thereafter.
2.
Shares
of
Beneficial
Interest
(continued)
Putnam
Variable
Trust
Notes
to
Financial
Statements
26
franklintempleton.com
Annual
Report
Putnam
VT
Mortgage
Securities
Fund
(continued)
Advisers
retained
Putnam
Management
as
subadvisor
for
the
Fund.
Pursuant
to
the
agreement,
Putnam
Management
provides
certain
advisory
and
related
services
to
the
Fund.
Advisers
pays
a
monthly
fee
to
Putnam
Management
based
on
the
costs
of
Putnam
Management
in
providing
these
services
to
the
Fund,
which
may
include
a
mark-up
not
to
exceed
15%
over
such
costs.
Under
a
subadvisory
agreement,
FTIML
provides
subadvisory
services
to
the
Fund.
The
subadvisory
fee
is
paid by Advisers
based
on
the
average
net
assets
managed
by
FTIML,
and
is
not
an
additional
expense
of
the
Fund.
b.
Administrative
Fees
Under
an
agreement
with
Advisers,
FT
Services
provides
administrative
services
to
the
Fund.
The
fee
is
paid
by Advisers
based
on
the Fund's
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Fund.
The
Fund
reimburses
Advisers
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.
c.
Distribution
Fees
The
Fund
has
adopted
distribution
plans
(the
Plans)
with
respect
to
the
following
share
classes
pursuant
to
Rule
12b-1
under
the
1940
Act.
The
purpose
of
the
Plans
is
to
compensate
Distributors
for
services
provided
and
expenses
incurred
in
distributing
shares
of
the
Fund.
The
Plans
provide
payments
by
the
Fund
to
Distributors
at
an
annual
rate
of
up
to
the
following
amounts
(Maximum
%)
of
the
average
net
assets
attributable
to
each
class.
The
Trustees
have
approved
payment
by
the
Fund
at
the
following
annual
rate
(Approved
%)
of
the
average
net
assets
attributable
to
each
class.
d.
Transfer
Agent
Fees
PSERV,
an
affiliate
of
Advisers,
provides
investor
servicing
agent
functions
to
the
Fund.
PSERV
was
paid
a
monthly
fee
for
investor
servicing
at
an
annual
rate
of
0.07%
of
the
Fund's
average
daily
net
assets.
e.
Trustee
Fees
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
from
July
1,
1995
through
December
31,
2023.
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
the
Trustees' fees
and
expenses
in
the
Statement
of
Operations.
Accrued
pension
liability
is
included
in
Payable
for
Trustees' fees
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.
Maximum
%
Approved
%
Class
IB
..................................................................
0.35%
0.25%
3.
Transactions
with
Affiliates
(continued)
a.
Management
Fees
(continued)
Putnam
Variable
Trust
Notes
to
Financial
Statements
27
franklintempleton.com
Annual
Report
Putnam
VT
Mortgage
Securities
Fund
(continued)
f.
Investments
in
Affiliated
Management
Investment
Companies
The
Fund
invests
in
one
or
more
affiliated
management
investment
companies.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
"Controlled
Affiliate"
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
fund's
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
The
Fund
does
not
invest
for
purposes
of
exercising
a
controlling
influence
over
the
management
or
policies.
Management
fees
paid
by
the
Fund
are
waived
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statement
of
Operations,
in
an
amount
not
to
exceed
the
management
and
administrative
fees,
if
applicable, paid
directly
or
indirectly
by
each
affiliate.
During
the
year
ended
December
31,
2025,
the
Fund
held
investments
in
affiliated
management
investment
companies
as
follows:
g.
Waiver
and
Expense
Reimbursements
Advisers
has
contractually
agreed,
through April
30,
2027,
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
plans,
on
a
fiscal
year-to-date
basis
to
an
annual
rate
of
0.20%
of
the
Fund's
average
net
assets
over
such
fiscal
year-to-date
period.
Advisers
has
also
contractually
agreed
to
waive
fees
(and,
to
the
extent
necessary,
bear
other
expenses)
of
the
Fund
through April
30,
2027,
to
the
extent
that
total
expenses
of
the
Fund
(excluding
brokerage,
interest,
taxes,
investment-related
expenses,
payments
under
distribution
plans,
extraordinary
expenses
and
acquired
fund
fees
and
expenses)
would
exceed
an
annual
rate
of
0.50%
of
the
Fund's
average
net
assets.
4.
Expense
Offset
Arrangement
The Fund has entered
into arrangements
with PSERV and
its
custodian
whereby
credits
realized
as
a
result
of
uninvested
cash
balances
are
used
to
reduce
a
portion
of
the
Fund's
transfer
agent
and
custodian
fees,
respectively.
During
the
year
ended
December
31,
2025,
the
fees
were
reduced
as
noted
in
the
Statement
of
Operations. Effective
April
14,
2025,
earned
credits
on
custodian
fees,
if
any,
are
recognized
as
income.
aa
Value
at
Beginning
of
Year
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Year
Number
of
Shares
Held
at
End
of
Year
Investment
Income
a
a
a
a
a
a
a
a
Putnam
VT
Mortgage
Securities
Fund
Non-Controlled
Affiliates
Dividends
Putnam
Short
Term
Investment
Fund,
Class
P,
3.967%
......
$2,732,792
$15,825,335
$(14,258,640)
$-
$-
$4,299,487
4,299,487
$110,366
Total
Affiliated
Securities
...
$2,732,792
$15,825,335
$(14,258,640)
$-
$-
$4,299,487
$110,366
3.
Transactions
with
Affiliates
(continued)
Putnam
Variable
Trust
Notes
to
Financial
Statements
28
franklintempleton.com
Annual
Report
Putnam
VT
Mortgage
Securities
Fund
(continued)
5.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
At
December
31,
2025,
the
capital
loss
carryforwards
were
as
follows:
During
the
year
ended
December
31,
2025,
the
Fund
utilized
$70,082
of
capital
loss
carryforwards.
The
tax
character
of
distributions
paid
during
the
years
ended
December
31,
2025
and
2024
,
was
as
follows:
At
December
31,
2025,
the
cost
of
investments,
net
unrealized
appreciation
(depreciation)
and
undistributed
ordinary
income for
income
tax
purposes
were
as
follows:
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatments
of
defaulted
securities
and
derivative
financial
instruments.
6.
Investment
Transactions
Purchases
and
sales
of
investments (excluding
short
term
securities) for
the
year
ended
December
31,
2025,
aggregated
$549,595,636 and
$516,223,537,
respectively.
7.
Credit
Risk
and
Defaulted
Securities
At
December
31,
2025,
the
Fund
had 12.1% of
its
portfolio
invested
in
high
yield
securities
rated
below
investment
grade
and
unrated
securities.
These
securities
may
be
more
sensitive
to
economic
conditions
causing
greater
price
volatility
and
are
potentially
subject
to
a
greater
risk
of
loss
due
to
default
than
higher
rated
securities.
The
Fund held
a
defaulted
security
and/or
other
securities
for
which
the
income
has
been
deemed
uncollectible.
At
December
31,
2025,
the value
of
this
security
was $28,989, representing 0.1%
of
the
Fund's
net
assets.
The
Fund
discontinues
accruing
income
on
securities
for
which
income
has
been
deemed
uncollectible
and
provides
an
estimate
for
losses
on
interest
receivable.
The
security has
been
identified
in
the
accompanying Schedule
of
Investments.
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
................................................................................
$
20,825,412
Long
term
................................................................................
5,448,472
Total
capital
loss
carryforwards
...............................................................
$26,273,884
2025
2024
Distributions
paid
from:
Ordinary
income
..........................................................
$2,266,150
$2,102,406
Cost
of
investments
..........................................................................
$67,203,347
Unrealized
appreciation
........................................................................
$1,706,121
Unrealized
depreciation
........................................................................
(5,243,865)
Net
unrealized
appreciation
(depreciation)
..........................................................
$(3,537,744)
Distributable
earnings:
Undistributed
ordinary
income
...................................................................
$1,645,585
Putnam
Variable
Trust
Notes
to
Financial
Statements
29
franklintempleton.com
Annual
Report
Putnam
VT
Mortgage
Securities
Fund
(continued)
8.
Other
Derivative
Information
At
December
31,
2025,
investments
in
derivative
contracts
are
reflected
in
the Statement of
Assets
and
Liabilities
as
follows:
For
the
year
ended
December
31,
2025,
the
effect
of
derivative
contracts
in
the Statement
of
Operations
was
as
follows:
For
the
year
ended
December
31,
2025,
the
average
month
end
notional
amount
of
futures
contracts,
swap
contracts
and
options
represented
$24,147,605,
$42,405,426
and
$45,553,338,
respectively.
Asset
Derivatives
Liability
Derivatives
Derivative
Contracts
Not
Accounted
for
as
Hedging
Instruments
Statement
of
Assets
and
Liabilities
Location
Fair
Value
Statement
of
Assets
and
Liabilities
Location
Fair
Value
Putnam
VT
Mortgage
Securities
Fund
Interest
rate
contracts
.......
Variation
margin
on
futures
contracts
$
96,833
a
Variation
margin
on
futures
contracts
$
-
Variation
margin
on
centrally
cleared
swap
contracts
20,862
a
Variation
margin
on
centrally
cleared
swap
contracts
84,462
a
Unrealized
appreciation
on
forward
premium
swap
option
contracts
49,049
Unrealized
depreciation
on
forward
premium
swap
option
contracts
240,234
Credit
contracts
............
OTC
swap
contracts
(upfront
payments)
442,783
OTC
swap
contracts
(upfront
receipts)
125,759
Unrealized
appreciation
on
OTC
swap
contracts
58,506
Unrealized
depreciation
on
OTC
swap
contracts
80,879
Total
....................
$668,033
$531,334
a
This
amount
reflects
the
cumulative
appreciation
(depreciation)
of
futures
contracts
and
centrally
cleared
swap
contracts
as
reported
in
the
Schedule
of
Investments.
Only
the
variation
margin
receivable/payable
at
year
end
is
separately
reported
within
the
Statement
of
Assets
and
Liabilities.
Prior
variation
margin
movements
were
recorded
to
cash
upon
receipt
or
payment.
Derivative
Contracts
Not
Accounted
for
as
Hedging
Instruments
Statement
of
Operations
Location
Net
Realized
Gain
(Loss)
for
the
Year
Statement
of
Operations
Location
Net
Change
in
Unrealized
Appreciation
(Depreciation)
for
the
Year
Putnam
VT
Mortgage
Securities
Fund
Net
realized
gain
(loss)
from:
Net
change
in
unrealized
appreciation
(depreciation)
on:
Interest
rate
contracts
..........
Futures
contracts
$(305,528)
Futures
contracts
$(173,754)
Swap
contracts
(181,083)
Swap
contracts
(81,784)
Forward
premium
swap
option
contracts
30,045
Forward
premium
swap
option
contracts
(355,358)
Credit
contracts
...............
Swap
contracts
(12,233)
Swap
contracts
26,224
Total
.......................
$(468,799)
$(584,672)
Putnam
Variable
Trust
Notes
to
Financial
Statements
30
franklintempleton.com
Annual
Report
Putnam
VT
Mortgage
Securities
Fund
(continued)
At
December
31,
2025,
the
Fund's
OTC
derivative
assets
and
liabilities
are
as
follows:
At
December
31,
2025,
OTC
derivative
assets,
which
may
be
offset
against
the
Fund's
OTC
derivative
liabilities
and
collateral
received
from
the
counterparty,
are
as
follows:
Gross
Amounts
of
Assets
and
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Assets
a
Liabilities
a
Putnam
VT
Mortgage
Securities
Fund
Forward
Premium
Swap
Option
Contracts
...................
$
49,049
$
240,234
Swap
Contracts
.......................................
501,289
206,638
Total
.............................................
$550,338
$446,872
a
Absent
an
event
of
default
or
early
termination,
OTC
derivative
assets
and
liabilities
are
presented
gross
and
not
offset
in
the
Statement
of
Assets
and
Liabilities.
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Gross
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
Instruments
Available
for
Offset
Financial
Instruments
Collateral
Received
Cash
Collateral
Received
a
Net
Amount
(Not
less
than
zero)
Putnam
VT
Mortgage
Securities
Fund
Counterparty
BNDP
...................
$
24,398
$
(990)
$
-
$
-
$
23,408
BOFA
....................
7,586
(
7,586)
-
-
-
CITI
.....................
227,217
(223,700)
-
(3,517)
-
DBAB
...................
-
-
-
-
-
GSCO
...................
140,284
(8,366)
-
(110,000)
21,918
JPHQ
...................
21,220
(17,897)
-
-
3,323
MLCO
...................
12,044
(12,044)
-
-
-
MSCO
...................
117,589
(52,189)
-
-
65,400
NATW
...................
-
-
-
-
-
Total
...................
$550,338
$(322,772)
$-
$(113,517)
$114,049
$
1
a
In
some
instances,
the
collateral
amounts
disclosed
in
the
table
above
were
adjusted
due
to
the
requirement
to
limit
the
collateral
amounts
to
avoid
the
effect
of
overcollateralization.
Actual
collateral
received
and/or
pledged
may
be
more
than
the
amounts
disclosed
herein.
8.
Other
Derivative
Information
(continued)
Putnam
Variable
Trust
Notes
to
Financial
Statements
31
franklintempleton.com
Annual
Report
Putnam
VT
Mortgage
Securities
Fund
(continued)
At
December
31,
2025,
OTC
derivative
liabilities,
which
may
be
offset
against
the
Fund's
OTC
derivative
assets
and
collateral
pledged
to
the
counterparty,
are
as
follows:
See
Note
1(e) regarding
derivative
financial
instruments.
See
Abbreviations
on
page
33
.
9.
Credit
Facility
Effective
January
31,
2025,
the
Fund,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers)
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2.995
billion
(Global
Credit
Facility)
which
matured
on
January
30,
2026.
This
Global
Credit
Facility
provides
a
source
of
funds
to
the
Borrowers
for
temporary
and
emergency
purposes,
including
the
ability
to
meet
future
unanticipated
or
unusually
large
redemption
requests.
Effective
January
30,
2026,
the
Borrowers
renewed
the
Global
Credit
Facility
for
a
one-year
term,
maturing
January
29,
2027,
for
a
total
of
$2.995
billion.
Under
the
terms
of
the
Global
Credit
Facility,
the
Fund
shall,
in
addition
to
interest
charged
on
any
borrowings
made
by
the
Fund
and
other
costs
incurred
by
the
Fund,
pay its
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon its
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
including
an
annual
commitment
fee
of
0.15%
based
upon
the
unused
portion
of
the
Global
Credit
Facility.
These
fees
are
reflected
in
other
expenses
in
the
Statement
of
Operations.
During
the
reporting
period,
the
Fund
did
not
use
the
Global
Credit
Facility.
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Gross
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
Instruments
Available
for
Offset
Financial
Instruments
Collateral
Pledged
a,b
Cash
Collateral
Pledged
Net
Amount
(Not
less
than
zero)
Putnam
VT
Mortgage
Securities
Fund
Counterparty
BNDP
...................
$
990
$
(990)
$
-
$
-
$
-
BOFA
....................
74,437
(7,586)
-
-
66,851
CITI
.....................
223,700
(223,700)
-
-
-
DBAB
...................
24,527
-
-
-
24,527
GSCO
...................
8,366
(8,366)
-
-
-
JPHQ
...................
17,897
(17,897)
-
-
-
MLCO
...................
23,411
(12,044)
-
-
11,367
MSCO
...................
52,189
(52,189)
-
-
-
NATW
...................
21,355
-
-
-
21,355
Total
...................
$446,872
$(322,772)
$-
$-
$124,100
a
In
some
instances,
the
collateral
amounts
disclosed
in
the
table
above
were
adjusted
due
to
the
requirement
to
limit
the
collateral
amounts
to
avoid
the
effect
of
overcollateralization.
Actual
collateral
received
and/or
pledged
may
be
more
than
the
amounts
disclosed
herein.
b
See
the
accompanying
Schedule
of
Investments
for
securities
pledged
as
collateral
for
derivatives.
8.
Other
Derivative
Information
(continued)
Putnam
Variable
Trust
Notes
to
Financial
Statements
32
franklintempleton.com
Annual
Report
Putnam
VT
Mortgage
Securities
Fund
(continued)
Prior
to
January
31,
2025,
the
Fund
participated,
along
with
other
Putnam
funds,
in
a
$320
million
syndicated
unsecured
committed
line
of
credit,
provided
by
State
Street
($160
million)
and
JPMorgan
($160
million),
and
a
$235.5
million
unsecured
uncommitted
line
of
credit,
provided
by
State
Street.
Borrowings
may
have
been
made
for
temporary
or
emergency
purposes,
including
the
funding
of
shareholder
redemption
requests
and
trade
settlements.
Interest
was
charged
to
the
Fund
based
on
the
Fund's
borrowings.
A
closing
fee
equal
to
0.04%
of
the
committed
line
of
credit
and
0.04%
of
the
uncommitted
line
of
credit
was
paid
by
the
participating
funds
and
a
$75,000
fee
was
paid
by
the
participating
funds
to
State
Street
as
agent
of
the
syndicated
committed
line
of
credit.
In
addition,
a
commitment
fee
of
0.21%
per
annum
on
any
unutilized
portion
of
the
committed
line
of
credit
was
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.
10.
Fair
Value
Measurements
The
Fund
follows
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Fund's
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the
Fund's financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
-
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
-
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
-
significant
unobservable
inputs
(including
the
Fund's
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
A
summary
of
inputs
used
as
of
December
31,
2025,
in
valuing
the
Fund's assets
and
liabilities carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Putnam
VT
Mortgage
Securities
Fund
Assets:
Investments
in
Securities:
a
Asset-Backed
Securities
...................
$
-
$
773,306
$
-
$
773,306
Commercial
Mortgage-Backed
Securities
......
-
6,719,824
-
6,719,824
Mortgage-Backed
Securities
................
-
38,752,502
-
38,752,502
Residential
Mortgage-Backed
Securities
.......
-
4,963,368
-
4,963,368
Agency
Commercial
Mortgage-Backed
Securities
-
7,750,382
-
7,750,382
Short
Term
Investments
...................
4,299,487
141,750
-
4,441,237
Total
Investments
in
Securities
...........
$4,299,487
$59,101,132
$-
$63,400,619
Other
Financial
Instruments:
Forward
Premium
Swap
Option
Contracts
.....
$-
$49,049
$-
$49,049
Futures
Contracts
.......................
96,833
-
-
96,833
Swap
Contracts
.........................
-
79,368
-
79,368
Total
Other
Financial
Instruments
.........
$96,833
$128,417
$-
$225,250
Liabilities:
Other
Financial
Instruments:
Forward
Premium
Swap
Option
Contracts
......
$-
$240,234
$-
$240,234
Swap
Contracts
.........................
-
165,341
-
165,341
Total
Other
Financial
Instruments
.........
$-
$405,575
$-
$405,575
a
For
detailed
categories,
see
the
accompanying
Schedule
of
Investments.
9.
Credit
Facility
(continued)
Putnam
Variable
Trust
Notes
to
Financial
Statements
33
franklintempleton.com
Annual
Report
Putnam
VT
Mortgage
Securities
Fund
(continued)
11.
Operating
Segments
The Fund operates
as
a
single
operating
segment,
which
is
an
investment
portfolio.
The
portfolio
managers
assigned
to
the
Fund
within
the
Fund's
Investment
manager serve
as
the
Chief
Operating
Decision
Maker
("CODM")
and
are
responsible
for
evaluating
the
Fund's
operating
results
and
allocating
resources
in
accordance
with
the
Fund's
investment
strategy.
Internal
reporting
provided
to
the
CODM
aligns
with
the
accounting
policies
and
measurement
principles
used
in
the financial
statements.
For
information
regarding
segment
assets,
segment
profit
or
loss,
and
significant
expenses,
refer
to
the Statement
of
Assets
and
Liabilities
and
the Statement
of
Operations,
along
with
the
related
notes
to
the financial
statements.
The Schedule
of
Investments
provides
details
of
the Fund's investments
that
generate
returns
such
as
interest,
dividends,
and
realized
and
unrealized
gains
or
losses.
Performance
metrics,
including
portfolio
turnover
and
expense
ratios,
are
disclosed
in
the Financial
Highlights.
12.
Subsequent
Events
The Fund
has
evaluated
subsequent
events
through
the
issuance
of
the
financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure
other
than
those
already
disclosed
in
the
financial
statements.
Abbreviations
Counterparty
BNDP
BNP
Paribas
SA
BOFA
Bank
of
America
NA
CITI
Citibank
NA
DBAB
Deutsche
Bank
AG
GSCO
Goldman
Sachs
Group,
Inc.
JPHQ
JPMorgan
Chase
Bank
NA
MLCO
Merrill
Lynch
International
&
Co.
MSCO
Morgan
Stanley
NATW
Natwest
Markets
plc
Index
CMBX.NA.
Series
number
CMBX
North
America
Index
Selected
Portfolio
FHLMC
Federal
Home
Loan
Mortgage
Corp.
FNMA
Federal
National
Mortgage
Association
FRN
Floating
Rate
Note
GNMA
Government
National
Mortgage
Association
IO
Interest
Only
REMIC
Real
Estate
Mortgage
Investment
Conduit
SOFR
Secured
Overnight
Financing
Rate
STACR
Structured
Agency
Credit
Risk
The
following
reference
rates,
and
their
values
as
of
period
end,
are
used
for
security
descriptions:
Reference
Index
Reference
Rate
1-day
SOFR
........................
3.87%
Putnam
Variable
Trust
Report
of
Independent
Registered
Public
Accounting
Firm
34
franklintempleton.com
Annual
Report
To
the
Board
of
Trustees
of
Putnam
Variable
Trust
and
Shareholders
of
Putnam
VT
Mortgage
Securities
Fund
Opinion
on
the
Financial
Statements
We
have
audited
the
accompanying
statement
of
assets
and
liabilities,
including
the
schedule
of
investments,
of
Putnam
VT
Mortgage
Securities
Fund
(one
of
the
funds
constituting
Putnam
Variable
Trust,
referred
to
hereafter
as
the
"Fund")
as
of
December
31,
2025,
the
related
statement
of
operations
for
the
year
ended
December
31,
2025,
the
statements
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
ended
December
31,
2025,
including
the
related
notes,
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
December
31,
2025
(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,
2025,
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,
2025
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
December
31,
2025
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,
2025
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.
/s/
PricewaterhouseCoopers
LLP
Boston,
Massachusetts
February
19,
2026
We
have
served
as
the
auditor
of
one
or
more
investment
companies
in
the
Putnam
Funds
family
of
funds
since
at
least
1957.
We
have
not
been
able
to
determine
the
specific
year
we
began
serving
as
auditor.
Putnam
Variable
Trust
Tax
Information
(unaudited)
35
franklintempleton.com
Annual
Report
Putnam
VT
Mortgage
Securities
Fund
By
mid-February,
tax
information
related
to
a
shareholder's
proportionate
share
of
distributions
paid
during
the
preceding
calendar
year
will
be
received,
if
applicable.
Please
also
refer
to
www.franklintempleton.com
for
per
share
tax
information
related
to
any
distributions
paid
during
the
preceding
calendar
year.
Shareholders
are
advised
to
consult
with
their
tax
advisors
for
further
information
on
the
treatment
of
these
amounts
on
their
tax
returns.
The
following
tax
information
for
the
Fund
is
required
to
be
furnished
to
shareholders
with
respect
to
income
earned
and
distributions
paid
during
its
fiscal
year.
The
Fund
hereby
reports
the
following
amount,
or
if
subsequently
determined
to
be
different,
the
maximum
allowable
amount,
for
the
fiscal
year
ended
December
31,
2025:
Pursuant
to:
Amount
Reported
Section
163(j)
Interest
Earned
§163(j)
$1,564,435
Putnam
Variable
Trust
36
franklintempleton.com
Annual
Report
Changes
In
and
Disagreements
with
Accountants
For
the
period
covered
by
this
report
Not
applicable.
Results
of
Meeting(s)
of
Shareholders
For
the
period
covered
by
this
report
Not
applicable.
Remuneration
Paid
to
Directors,
Officers
and
Others
For
the
period
covered
by
this
report
Refer
to
the
financial
statements
included
herein.
Remuneration
to
officers
is
paid
by
the
Fund's
investment
manager
according
to
the
terms
of
the
agreement.
Board
Approval
of
Management
and
Subadvisory
Agreements
For
the
period
covered
by
this
report
Not
applicable.
38988-AFSOI
02/26
©
2026
Franklin
Templeton.
All
rights
reserved.
| ITEM 8. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
| ITEM 9. | PROXY DISCLOSURES FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
| ITEM 10. | REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
| ITEM 11. | STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR, as applicable.
| ITEM 12. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
| ITEM 13. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
| ITEM 14. | PURCHASES OF SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. |
Not applicable.
| ITEM 15. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.
| ITEM 16. | CONTROLS AND PROCEDURES. |
| (a) | The Registrant's principal executive officer and principal financial officer have concluded that the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act")) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934. |
| (b) | During the period covered by this report, the Registrant transitioned to a new third-party service provider who performs certain accounting and administrative services for the Registrant that are subject to Franklin Templeton's oversight. |
| ITEM 17. | DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
| ITEM 18. | RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION. |
| (a) | Not applicable. |
| (b) | Not applicable. |
| ITEM 19. | EXHIBITS. |
Exhibit 99.CODE ETH
Exhibit 99.CERT
Exhibit 99.906CERT
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, there unto duly authorized.
| Putnam Variable Trust | ||
| By: | /s/ Jonathan S. Horwitz | |
| Jonathan S. Horwitz | ||
| Principal Executive Officer | ||
| Date: | February 25, 2026 | |
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: | /s/ Jonathan S. Horwitz | |
| Jonathan S. Horwitz | ||
| Principal Executive Officer | ||
| Date: | February 25, 2026 |
| By: | /s/ Jeffrey White | |
| Jeffrey White | ||
| Principal Financial Officer | ||
| Date: | February 25, 2026 |
Putnam Variable Trust published this content on February 25, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on February 25, 2026 at 18:48 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]