Putnam Variable Trust
08/26/2025 | Press release | Distributed by Public on 08/26/2025 11:53
Semi-Annual Report by Investment Company (Form N-CSRS)
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, New York 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: June 30, 2025
| ITEM 1. | REPORT TO STOCKHOLDERS. |
(a) The Report to Shareholders is filed herewith
|
Putnam VT Small Cap Growth Fund
|
||
|
Class IA
|
||
|
Semi-Annual Shareholder Report | June 30, 2025
|
||
This semi-annual shareholder reportcontains important information about Putnam VT Small Cap Growth Fund for the period January 1, 2025, to June 30, 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.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (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
|
$44
|
0.87%
|
| † | Annualized. |
| 1 | Does not reflect expenses incurred from investing through variable annuity or variable life insurance products. |
KEY FUND STATISTICS (as of June 30, 2025)
|
Total Net Assets
|
$35,318,247
|
|
Total Number of Portfolio Holdings*
|
101
|
|
Portfolio Turnover Rate
|
30%
|
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of June 30, 2025)
Portfolio Composition*(% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
|
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 Small Cap Growth Fund | PAGE 1 | 38948-STSIA-0825 |
|
Putnam VT Small Cap Growth Fund
|
||
|
Class IB
|
||
|
Semi-Annual Shareholder Report | June 30, 2025
|
||
This semi-annual shareholder reportcontains important information about Putnam VT Small Cap Growth Fund for the period January 1, 2025, to June 30, 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.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (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
|
$57
|
1.12%
|
| † | Annualized. |
| 1 | Does not reflect expenses incurred from investing through variable annuity or variable life insurance products. |
KEY FUND STATISTICS (as of June 30, 2025)
|
Total Net Assets
|
$35,318,247
|
|
Total Number of Portfolio Holdings*
|
101
|
|
Portfolio Turnover Rate
|
30%
|
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of June 30, 2025)
Portfolio Composition*(% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
|
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 Small Cap Growth Fund | PAGE 1 | 38948-STSIB-0825 |
(b) Not applicable
| ITEM 2. | CODE OF ETHICS. |
Not applicable.
| ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
Not applicable.
| ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
Not applicable.
| ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable.
| ITEM 6. | SCHEDULE OF INVESTMENTS. |
| (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
Small
Cap
Growth
Fund
Financial
Statements
and
Other
Important
Information
Semi-Annual
|
June
30,
2025
Table
of
Contents
franklintempleton.com
Financial
Statements
and
Other
Important
Information-Semiannual
1
Financial
Highlights
and
Schedule
of
Investments
2
Financial
Statements
8
Notes
to
Financial
Statements
12
Changes
In
and
Disagreements
with
Accountants
21
Results
of
Meeting(s)
of
Shareholders
21
Remuneration
Paid
to
Directors,
Officers
and
Others
21
Board
Approval
of
Management
and
Subadvisory
Agreements
21
Putnam
Variable
Trust
Financial
Highlights
Putnam
VT
Small
Cap
Growth
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
2
a
Six
Months
Ended
June
30,
2025
(unaudited)
Year
Ended
December
31,
2024
2023
2022
2021
2020
Class
IA
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$22.26
$18.00
$14.58
$24.48
$23.26
$16.43
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.05)
(0.11)
(0.05)
(0.06)
(0.15)
(0.11)
Net
realized
and
unrealized
gains
(losses)
0.29
4.37
3.47
(6.25)
3.22
7.60
Total
from
investment
operations
........
0.24
4.26
3.42
(6.31)
3.07
7.49
Less
distributions
from:
Net
investment
income
..............
(0.13)
-
-
-
-
-
Net
realized
gains
.................
(1.41)
-
-
(3.55)
(1.85)
(0.66)
Tax
return
of
capital
................
-
-
-
(0.04)
-
-
Total
distributions
...................
(1.54)
-
-
(3.59)
(1.85)
(0.66)
Net
asset
value,
end
of
period
..........
$20.96
$22.26
$18.00
$14.58
$24.48
$23.26
Total
return
c
.......................
1.97%
23.67%
23.46%
(28.11)%
14.18%
48.71%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.87%
0.93%
0.99%
0.99%
0.85%
0.90%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
0.87%
0.88%
0.89%
0.89%
0.85%
0.89%
Net
investment
(loss)
................
(0.52)%
(0.54)%
(0.31)%
(0.36)%
(0.65)%
(0.59)%
Supplemental
data
Net
assets,
end
of
period
(000's)
........
$16,210
$16,929
$14,339
$12,540
$19,208
$18,010
Portfolio
turnover
rate
................
30%
61%
58%
58%
53%
59%
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.
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Putnam
Variable
Trust
Financial
Highlights
Putnam
VT
Small
Cap
Growth
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
3
a
Six
Months
Ended
June
30,
2025
(unaudited)
Year
Ended
December
31,
2024
2023
2022
2021
2020
Class
IB
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$21.46
$17.40
$14.13
$23.91
$22.81
$16.17
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.08)
(0.16)
(0.09)
(0.10)
(0.21)
(0.15)
Net
realized
and
unrealized
gains
(losses)
0.29
4.22
3.36
(6.09)
3.16
7.45
Total
from
investment
operations
........
0.21
4.06
3.27
(6.19)
2.95
7.30
Less
distributions
from:
Net
investment
income
..............
(0.08)
-
-
-
-
-
Net
realized
gains
.................
(1.41)
-
-
(3.55)
(1.85)
(0.66)
Tax
return
of
capital
................
-
-
-
(0.04)
-
-
Total
distributions
...................
(1.49)
-
-
(3.59)
(1.85)
(0.66)
Net
asset
value,
end
of
period
..........
$20.18
$21.46
$17.40
$14.13
$23.91
$22.81
Total
return
c
.......................
1.89%
23.33%
23.14%
(28.30)%
13.92%
48.30%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.12%
1.18%
1.24%
1.24%
1.10%
1.15%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
1.12%
1.13%
1.14%
1.14%
1.10%
1.14%
Net
investment
(loss)
................
(0.77)%
(0.79)%
(0.56)%
(0.61)%
(0.90)%
(0.84)%
Supplemental
data
Net
assets,
end
of
period
(000's)
........
$19,108
$17,716
$14,183
$12,600
$19,376
$19,001
Portfolio
turnover
rate
................
30%
61%
58%
58%
53%
59%
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.
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Putnam
Variable
Trust
Schedule
of
Investments
(unaudited),
June
30,
2025
Putnam
VT
Small
Cap
Growth
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
4
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
98.2%
Aerospace
&
Defense
3.4%
a
Kratos
Defense
&
Security
Solutions,
Inc.
.................
United
States
11,315
$
525,582
Leonardo
DRS,
Inc.
.................................
United
States
7,499
348,553
a
Loar
Holdings,
Inc.
..................................
United
States
845
72,814
a
Rocket
Lab
Corp.
...................................
United
States
7,305
261,300
1,208,249
Automobile
Components
0.6%
Patrick
Industries,
Inc.
................................
United
States
2,177
200,872
Banks
1.4%
a
Bancorp,
Inc.
(The)
..................................
United
States
8,630
491,651
Biotechnology
6.2%
a
ADMA
Biologics,
Inc.
.................................
United
States
21,305
387,964
a
Ascendis
Pharma
A/S
,
ADR
...........................
Denmark
1,312
226,451
a
Blueprint
Medicines
Corp.
.............................
United
States
1,171
150,099
a
Bridgebio
Pharma,
Inc.
...............................
United
States
2,520
108,814
a
Halozyme
Therapeutics,
Inc.
...........................
United
States
6,170
320,963
a
Insmed,
Inc.
.......................................
United
States
4,410
443,822
a
Madrigal
Pharmaceuticals,
Inc.
.........................
United
States
465
140,728
a
Rhythm
Pharmaceuticals,
Inc.
..........................
United
States
3,305
208,843
a
Vericel
Corp.
.......................................
United
States
2,533
107,779
a
Xenon
Pharmaceuticals,
Inc.
...........................
Canada
3,276
102,539
2,198,002
Broadline
Retail
0.6%
a
Ollie's
Bargain
Outlet
Holdings,
Inc.
......................
United
States
1,680
221,390
Building
Products
0.7%
CSW
Industrials,
Inc.
.................................
United
States
898
257,573
Capital
Markets
2.0%
Perella
Weinberg
Partners
,
A
...........................
United
States
9,885
191,967
StepStone
Group,
Inc.
,
A
..............................
United
States
9,485
526,417
718,384
Commercial
Services
&
Supplies
4.1%
a
Casella
Waste
Systems,
Inc.
,
A
.........................
United
States
4,962
572,516
a
Clean
Harbors,
Inc.
..................................
United
States
1,500
346,770
VSE
Corp.
........................................
United
States
4,080
534,398
1,453,684
Construction
&
Engineering
5.8%
Comfort
Systems
USA,
Inc.
............................
United
States
1,540
825,763
a
Construction
Partners,
Inc.
,
A
..........................
United
States
3,995
424,589
a
Dycom
Industries,
Inc.
................................
United
States
1,800
439,902
a
IES
Holdings,
Inc.
...................................
United
States
1,235
365,844
2,056,098
Construction
Materials
1.8%
Eagle
Materials,
Inc.
.................................
United
States
865
174,825
a
Knife
River
Corp.
...................................
United
States
5,720
466,981
641,806
Consumer
Finance
0.6%
a
Enova
International,
Inc.
..............................
United
States
2,038
227,278
Consumer
Staples
Distribution
&
Retail
0.5%
a
BJ's
Wholesale
Club
Holdings,
Inc.
......................
United
States
1,585
170,910
Putnam
Variable
Trust
Schedule
of
Investments
(unaudited)
Putnam
VT
Small
Cap
Growth
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
5
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Diversified
Consumer
Services
2.1%
a
Adtalem
Global
Education,
Inc.
.........................
United
States
1,908
$
242,755
a
Stride,
Inc.
........................................
United
States
3,415
495,824
738,579
Electronic
Equipment,
Instruments
&
Components
4.1%
Advanced
Energy
Industries,
Inc.
.......................
United
States
1,970
261,025
Badger
Meter,
Inc.
...................................
United
States
260
63,687
a
Fabrinet
..........................................
Thailand
1,285
378,664
a
Itron,
Inc.
.........................................
United
States
4,805
632,482
a
Mirion
Technologies,
Inc.
,
A
............................
United
States
5,705
122,829
1,458,687
Energy
Equipment
&
Services
1.2%
Archrock,
Inc.
......................................
United
States
9,770
242,589
CES
Energy
Solutions
Corp.
...........................
Canada
40,570
197,525
440,114
Financial
Services
0.7%
a
Mr.
Cooper
Group,
Inc.
...............................
United
States
1,560
232,768
Health
Care
Equipment
&
Supplies
4.7%
a
Integer
Holdings
Corp.
...............................
United
States
2,595
319,107
a
Lantheus
Holdings,
Inc.
...............................
United
States
2,265
185,413
a
Merit
Medical
Systems,
Inc.
............................
United
States
7,180
671,186
a
PROCEPT
BioRobotics
Corp.
..........................
United
States
2,762
159,091
a
UFP
Technologies,
Inc.
...............................
United
States
1,285
313,746
1,648,543
Health
Care
Providers
&
Services
6.1%
Encompass
Health
Corp.
.............................
United
States
7,115
872,512
Ensign
Group,
Inc.
(The)
..............................
United
States
4,220
650,977
a
GeneDx
Holdings
Corp.
,
A
.............................
United
States
1,560
144,004
a,b
Hims
&
Hers
Health,
Inc.
..............................
United
States
4,955
247,007
a
RadNet,
Inc.
.......................................
United
States
4,095
233,046
2,147,546
Health
Care
Technology
0.7%
a
Doximity,
Inc.
,
A
....................................
United
States
3,805
233,399
Hotels,
Restaurants
&
Leisure
3.0%
a
Brinker
International,
Inc.
.............................
United
States
610
110,001
a
Planet
Fitness,
Inc.
,
A
................................
United
States
3,300
359,865
Texas
Roadhouse,
Inc.
,
A
.............................
United
States
3,085
578,160
1,048,026
Household
Durables
0.9%
Installed
Building
Products,
Inc.
.........................
United
States
1,820
328,182
Insurance
3.3%
Kinsale
Capital
Group,
Inc.
............................
United
States
1,090
527,451
a
Skyward
Specialty
Insurance
Group,
Inc.
..................
United
States
11,285
652,160
1,179,611
Interactive
Media
&
Services
0.4%
a
Grindr,
Inc.
........................................
Singapore
6,061
137,585
Life
Sciences
Tools
&
Services
0.7%
a
Medpace
Holdings,
Inc.
...............................
United
States
750
235,395
Putnam
Variable
Trust
Schedule
of
Investments
(unaudited)
Putnam
VT
Small
Cap
Growth
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Machinery
5.8%
Crane
Co.
.........................................
United
States
1,825
$
346,549
Federal
Signal
Corp.
.................................
United
States
5,070
539,549
JBT
Marel
Corp.
....................................
United
States
415
49,908
a
RBC
Bearings,
Inc.
..................................
United
States
1,751
673,785
a
SPX
Technologies,
Inc.
...............................
United
States
2,545
426,746
2,036,537
Marine
Transportation
1.6%
a
Kirby
Corp.
........................................
United
States
5,116
580,205
Metals
&
Mining
2.5%
Carpenter
Technology
Corp.
...........................
United
States
3,208
886,627
Oil,
Gas
&
Consumable
Fuels
0.4%
a
Centrus
Energy
Corp.
,
A
..............................
United
States
685
125,478
Personal
Care
Products
1.0%
a
BellRing
Brands,
Inc.
.................................
United
States
6,145
355,980
Pharmaceuticals
3.1%
a
Axsome
Therapeutics,
Inc.
............................
United
States
2,325
242,707
a
Verona
Pharma
plc
,
ADR
.............................
United
Kingdom
8,945
846,018
1,088,725
Professional
Services
3.9%
a
CBIZ,
Inc.
.........................................
United
States
920
65,973
a
Huron
Consulting
Group,
Inc.
..........................
United
States
5,080
698,703
a
Parsons
Corp.
......................................
United
States
3,565
255,860
a
Verra
Mobility
Corp.
,
A
................................
United
States
14,163
359,599
1,380,135
Real
Estate
Management
&
Development
1.9%
Colliers
International
Group,
Inc.
........................
Canada
2,300
300,930
FirstService
Corp.
...................................
Canada
2,050
357,732
658,662
Semiconductors
&
Semiconductor
Equipment
5.6%
a,b
Camtek
Ltd.
.......................................
Israel
4,400
372,064
a
Credo
Technology
Group
Holding
Ltd.
....................
United
States
4,730
437,951
a
Nova
Ltd.
.........................................
Israel
3,045
837,984
a
Rambus,
Inc.
......................................
United
States
2,755
176,375
a
SiTime
Corp.
.......................................
United
States
730
155,548
1,979,922
Software
11.2%
a
ACI
Worldwide,
Inc.
..................................
United
States
12,530
575,252
a
Agilysys,
Inc.
.......................................
United
States
3,150
361,116
a
AvePoint,
Inc.
......................................
United
States
7,550
145,791
a
Clearwater
Analytics
Holdings,
Inc.
,
A
....................
United
States
8,665
190,023
a
Commvault
Systems,
Inc.
.............................
United
States
1,765
307,692
a
Descartes
Systems
Group,
Inc.
(The)
....................
Canada
6,410
651,544
a
Intapp,
Inc.
........................................
United
States
3,309
170,811
Pegasystems,
Inc.
...................................
United
States
7,120
385,406
a
Q2
Holdings,
Inc.
...................................
United
States
4,740
443,617
a
Varonis
Systems,
Inc.
,
B
..............................
United
States
2,110
107,083
a
Vertex,
Inc.
,
A
......................................
United
States
17,025
601,578
3,939,913
Putnam
Variable
Trust
Schedule
of
Investments
(unaudited)
Putnam
VT
Small
Cap
Growth
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
7
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Specialty
Retail
3.4%
a
Aritzia,
Inc.
........................................
Canada
6,090
$
315,513
a
Boot
Barn
Holdings,
Inc.
..............................
United
States
2,445
371,640
Murphy
USA,
Inc.
...................................
United
States
1,260
512,568
1,199,721
Technology
Hardware,
Storage
&
Peripherals
0.0%
†
a
IonQ,
Inc.
.........................................
United
States
440
18,907
Trading
Companies
&
Distributors
2.2%
Applied
Industrial
Technologies,
Inc.
.....................
United
States
2,249
522,780
FTAI
Aviation
Ltd.
...................................
United
States
2,150
247,336
770,116
Total
Common
Stocks
(Cost
$
24,138,954
)
....................................
34,695,260
Short
Term
Investments
3.9%
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Money
Market
Funds
2.3%
c,d
Putnam
Short
Term
Investment
Fund,
Class
P
,
4.581
%
.......
United
States
801,010
801,010
Total
Money
Market
Funds
(Cost
$
801,010
)
...................................
801,010
e
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
1.6%
Money
Market
Funds
1.6%
c,d
Putnam
Cash
Collateral
Pool,
LLC
,
4.608
%
................
United
States
586,200
586,200
Total
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
(Cost
$
586,200
)
...........................................................
586,200
Total
Short
Term
Investments
(Cost
$
1,387,210
)
...............................
1,387,210
a
Total
Investments
(Cost
$
25,526,164
)
102.1
%
.................................
$36,082,470
Other
Assets,
less
Liabilities
(
2.1
)
%
.........................................
(764,223)
Net
Assets
100.0%
.........................................................
$35,318,247
a
a
a
See
Abbreviations
on
page
20
.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Non-income
producing.
b
A
portion
or
all
of
the
security
is
on
loan
at
June
30,
2025.
See
Note
1(c).
c
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
d
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
e
See
Note
1(c)
regarding
securities
on
loan.
Putnam
Variable
Trust
Financial
Statements
Statement
of
Assets
and
Liabilities
June
30,
2025
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
8
Putnam
VT
Small
Cap
Growth
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$24,138,954
Cost
-
Non-controlled
affiliates
(Note
3
f
)
........................................................
1,387,210
Value
-
Unaffiliated
issuers
(Includes
securities
loaned
of
$
549,124
)
...................................
$34,695,260
Value
-
Non-controlled
affiliates
(Note
3
f
)
........................................................
1,387,210
Receivables:
Investment
securities
sold
(Includes
securities
loaned
$
27,664
)
.......................................
103,363
Capital
shares
sold
........................................................................
3,080
Dividends
...............................................................................
6,741
Prepaid
expenses
..........................................................................
9,982
Total
assets
..........................................................................
36,205,636
Liabilities:
Payables:
Investment
securities
purchased
..............................................................
156,275
Capital
shares
redeemed
...................................................................
36,916
Management
fees
.........................................................................
18,453
Administrative
fees
........................................................................
129
Distribution
fees
..........................................................................
3,839
Transfer
agent
fees
........................................................................
5,746
Trustees'
fees
and
expenses
.................................................................
18,539
Funds
advanced
by
custodian
.................................................................
24,138
Payable
upon
return
of
securities
loaned
(Note
1
c
)
..................................................
586,200
Accrued
expenses
and
other
liabilities
...........................................................
37,154
Total
liabilities
.........................................................................
887,389
Net
assets,
at
value
.................................................................
$35,318,247
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$24,054,776
Total
distributable
earnings
(losses)
.............................................................
11,263,471
Net
assets,
at
value
.................................................................
$35,318,247
Putnam
Variable
Trust
Financial
Statements
Statement
of
Assets
and
Liabilities
(continued)
June
30,
2025
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
9
Putnam
VT
Small
Cap
Growth
Fund
Class
IA:
Net
assets,
at
value
.......................................................................
$16,209,813
Shares
outstanding
........................................................................
773,221
Net
asset
value
and
maximum
offering
price
per
share
a
.............................................
$20.96
Class
IB:
Net
assets,
at
value
.......................................................................
$19,108,434
Shares
outstanding
........................................................................
947,071
Net
asset
value
and
maximum
offering
price
per
share
a
.............................................
$20.18
a
Net
asset
value
per
share
may
not
recalculate
due
to
rounding.
Putnam
Variable
Trust
Financial
Statements
Statement
of
Operations
for
the
six
months
ended
June
30,
2025
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
10
Putnam
VT
Small
Cap
Growth
Fund
Investment
income:
Dividends:
(net
of
foreign
taxes
of
$609)
Unaffiliated
issuers
........................................................................
$42,924
Non-controlled
affiliates
(Note
3
f
)
.............................................................
12,410
Income
from
securities
loaned:
Unaffiliated
entities
(net
of
fees
and
rebates)
.....................................................
(6,402)
Non-controlled
affiliates
(Note
3
f
)
.............................................................
9,223
Total
investment
income
...................................................................
58,155
Expenses:
Management
fees
(Note
3
a
)
...................................................................
100,990
Administrative
fees
(Note
3
b
)
..................................................................
195
Distribution
fees:
(Note
3c
)
Class
IB
................................................................................
22,232
Transfer
agent
fees:
(Note
3d
)
Class
IA
................................................................................
5,399
Class
IB
................................................................................
6,381
Custodian
fees
(Note
4
)
......................................................................
5,798
Reports
to
shareholders
fees
..................................................................
4,688
Professional
fees
...........................................................................
20,730
Trustees'
fees
and
expenses
(Note
3e)
...........................................................
653
Other
....................................................................................
251
Total
expenses
.........................................................................
167,317
Expense
reductions
(Note
4
)
...............................................................
(3)
Net
expenses
.........................................................................
167,314
Net
investment
income
(loss)
............................................................
(109,159)
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
1,320,723
Foreign
currency
transactions
................................................................
(69)
Net
realized
gain
(loss)
..................................................................
1,320,654
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
(600,755)
Net
realized
and
unrealized
gain
(loss)
............................................................
719,899
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$610,740
Putnam
Variable
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
11
Putnam
VT
Small
Cap
Growth
Fund
Six
Months
Ended
June
30,
2025
(unaudited)
Year
Ended
December
31,
2024
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
(loss)
............................................
$(109,159)
$(214,402)
Net
realized
gain
(loss)
.................................................
1,320,654
4,928,941
Net
change
in
unrealized
appreciation
(depreciation)
...........................
(600,755)
1,722,588
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
610,740
6,437,127
Distributions
to
shareholders:
Class
IA
............................................................
(1,116,442)
-
Class
IB
............................................................
(1,286,626)
-
Total
distributions
to
shareholders
..........................................
(2,403,068)
-
Capital
share
transactions:
(Note
2
)
Class
IA
............................................................
125,364
(731,036)
Class
IB
............................................................
2,340,615
416,167
Total
capital
share
transactions
............................................
2,465,979
(314,869)
Net
increase
(decrease)
in
net
assets
...................................
673,651
6,122,258
Net
assets:
Beginning
of
period
.....................................................
34,644,596
28,522,338
End
of
period
..........................................................
$35,318,247
$34,644,596
Putnam
Variable
Trust
Notes
to
Financial
Statements
(unaudited)
Putnam
VT
Small
Cap
Growth
Fund
12
franklintempleton.com
Semiannual
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
Small
Cap
Growth
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. At
June
30,
2025,
51.5%
of
the
Fund's
shares
were
held
through
one
insurance
company.
Investment
activities
of
these
insurance
company
separate
accounts
could
have
a
material
impact
on
the
Fund.
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.
Equity
securities
listed
on
an
exchange
or
on
the
NASDAQ
National
Market
System
are
valued
at
the
last
quoted
sale
price
or
the
official
closing
price of
the
day,
respectively.
Foreign
equity
securities
are
valued
as
of
the
close
of
trading
on
the
foreign
stock
exchange
on
which
the
security
is
primarily
traded,
or
as
of
4
p.m.
Eastern
time.
The
value
is
then
converted
into
its
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m.
Eastern
time
on
the
day
that
the
value
of
the
security
is
determined.
Over-the-counter
(OTC)
securities
are
valued
within
the
range
of
the
most
recent
quoted
bid
and
ask
prices.
Securities
that
trade
in
multiple
markets
or
on
multiple
exchanges
are
valued
according
to
the
broadest
and
most
representative
market.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities.
Investments
in open-end mutual
funds
are
valued
at
the
closing
NAV.
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.
Trading
in
securities
on
foreign
securities
stock
exchanges
and
OTC
markets
may
be
completed
before
4
p.m.
Eastern
time.
In
addition,
trading
in
certain
foreign
markets
may
not
take
place
on
every
Fund's
business
day. Events
can occur
between
the
time
at
which
trading
in
a
foreign
security
is
completed
and
4
p.m.
Eastern
time
that
might
call
into
question
the
reliability
of
the
value
of
a
portfolio
security
held
by
the
Fund.
As
a
result,
differences
may
arise
between
the
value
of
the
Fund's
portfolio
securities
as
determined
at
the
foreign
market
close
and
the
latest
indications
of
value
at
4
p.m.
Eastern
time. In
order
to
minimize
the
potential
for
these
differences,
an
independent
pricing
service
may
be
used
to
adjust
the
value
of
the
Fund's
portfolio
securities
to
the
latest
indications
of
fair
value
at
4
p.m.
Eastern
time.
Putnam
Variable
Trust
Notes
to
Financial
Statements
(unaudited)
13
franklintempleton.com
Semiannual
Report
Putnam
VT
Small
Cap
Growth
Fund
(continued)
When
the
last
day
of
the
reporting
period
is
a
non-business
day,
certain
foreign
markets
may
be
open
on
those
days
that
the
Fund's
NAV
is
not
calculated,
which
could
result
in
differences
between
the
value
of
the
Fund's
portfolio
securities
on
the
last
business
day
and
the
last
calendar
day
of
the
reporting
period.
Any
security
valuation
changes
due
to
an
open
foreign
market
are
adjusted
and
reflected
by
the
Fund
for
financial
reporting
purposes.
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
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.
Securities
Lending
The
Fund
participates
in
an
agency
based
securities
lending
program
to
earn
additional
income.
The
Fund
receives
collateral
in
the
form
of
cash
and/or
U.S.
Government
and
Agency
securities
against
the
loaned
securities
in
an
amount
equal
to
at
least
102%
of
the
fair
value
of
the
loaned
securities.
Collateral
is
maintained
over
the
life
of
the
loan
in
an
amount
not
less
than
100%
of
the
fair
value
of
loaned
securities,
as
determined
at
the
close
of
Fund
business
each
day;
any
additional
collateral
required
due
to
changes
in
security
values
is
delivered
to
the
Fund
on
the
next
business
day.
Any
cash
collateral
received
is
deposited
into
a
joint
cash
account
with
other
funds
and
is
used
to
invest
in
the
Putnam
Cash
Collateral
Pool,
LLC,
a
limited
liability
company,
an
affiliate
of
Putnam
Management. The
Fund
may
receive
income
from
the
investment
of
cash
collateral,
in
addition
to
lending
fees paid
by
the
borrower.
Income
from
securities
loaned,
net
of
fees
paid
to
the
securities
lending
agent
and/or
third-party
vendor,
is
reported
separately
in
the Statement of
Operations.
The
Fund
bears
the
market
risk
with
respect
to
any
cash
collateral
investment,
securities
loaned,
and
the
risk
that
the
agent
may
default
on
its
obligations
to
the
Fund.
If
the
borrower
defaults
on
its
obligation
to
return
the
securities
loaned,
the
Fund
has
the
right
to
repurchase
the
securities
in
the
open
market
using
the
collateral
received.
The
securities
lending
agent
has
agreed
to
indemnify
the
Fund
in
the
event
of
default
by
a
third
party
borrower.
d.
Income
and
Deferred
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
excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The
Fund
may
be
subject
to
foreign
taxation
related
to
income
received,
capital
gains
on
the
sale
of
securities
and
certain
foreign
currency
transactions
in
the
foreign
jurisdictions
in
which it
invests.
Foreign
taxes,
if
any,
are
recorded
based
on
the
tax
regulations
and
rates
that
exist
in
the
foreign
markets
in
which
the
Fund
invests.
When
a
capital
gain
tax
is
determined
to
apply,
the
Fund
records
an
estimated
deferred
tax
liability
in
an
amount
that
would
be
payable
if
the
securities
were
disposed
of
on
the
valuation
date.
1.
Organization
and
Significant
Accounting
Policies
(continued)
a.
Financial
Instrument
Valuation
(continued)
Putnam
Variable
Trust
Notes
to
Financial
Statements
(unaudited)
14
franklintempleton.com
Semiannual
Report
Putnam
VT
Small
Cap
Growth
Fund
(continued)
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
June
30,
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).
Open
tax
years
are
those
that
remain
subject
to
examination
and
are
based
on
the
statute
of
limitations
in
each
jurisdiction
in
which
the Fund
invests.
e.
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.
Estimated
expenses
are
accrued
daily.
Dividend
income
is
recorded
on
the
ex-dividend
date
except
for
certain
dividends
from
securities
where
the
dividend
rate
is
not
available.
In
such
cases,
the
dividend
is
recorded
as
soon
as
the
information
is
received
by
the
Fund.
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.
f.
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.
g.
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.
1.
Organization
and
Significant
Accounting
Policies
(continued)
d.
Income
and
Deferred
Taxes
(continued)
Putnam
Variable
Trust
Notes
to
Financial
Statements
(unaudited)
15
franklintempleton.com
Semiannual
Report
Putnam
VT
Small
Cap
Growth
Fund
(continued)
2.
Shares
of
Beneficial
Interest
At
June
30,
2025,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Fund's
shares
were
as
follows:
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 Putnam
Management a
management
fee
(based
on
the
Fund's
average
net
assets
and
computed
and
paid
monthly)
at
annual
rates
that
may
vary
based
on
the
average
of
the
aggregate
net
assets
of
all
open-end
mutual
funds
sponsored
by
Putnam
Management
(including
open-end
funds
managed
by
affiliates
of
Putnam
Management
that
have
been
Six
Months
Ended
June
30,
2025
Year
Ended
December
31,
2024
Shares
Amount
Shares
Amount
Class
IA
Shares:
Shares
sold
...................................
29,498
$611,047
72,394
$1,558,478
Shares
issued
in
reinvestment
of
distributions
..........
60,348
1,116,442
-
-
Shares
redeemed
...............................
(77,114)
(1,602,125)
(108,681)
(2,289,514)
Net
increase
(decrease)
..........................
12,732
$125,364
(36,287)
$(731,036)
Class
IB
Shares:
Shares
sold
...................................
123,331
$2,497,747
118,673
$2,608,304
Shares
issued
in
reinvestment
of
distributions
..........
72,202
1,286,626
-
-
Shares
redeemed
...............................
(73,917)
(1,443,758)
(108,553)
(2,192,137)
Net
increase
(decrease)
..........................
121,616
$2,340,615
10,120
$416,167
Subsidiary
Affiliation
Putnam
Investment
Management,
LLC
(Putnam
Management)
Investment
manager
Franklin
Advisers,
Inc.
(Advisers)
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
Putnam
Variable
Trust
Notes
to
Financial
Statements
(unaudited)
16
franklintempleton.com
Semiannual
Report
Putnam
VT
Small
Cap
Growth
Fund
(continued)
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
period
ended
June
30,
2025,
the
annualized
gross
effective
investment
management
fee
rate
was 0.604%
of
the
Fund's
average daily
net
assets.
Putnam
Management
retained
Advisers
as
subadvisor
for
the
Fund
pursuant
to
a
new
subadvisory
agreement.
Pursuant
to
the
agreement,
Advisers
provides
certain
advisory
and
related
services
to
the
Fund.
Putnam
Management
pays
a
monthly
fee
to
Advisers
based
on
the
costs
of
Advisers
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 Putnam
Management
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
Putnam
Management,
FT
Services
provides
administrative
services
to
the
Fund.
The
fee
is
paid
by Putnam
Management
based
on
the Fund's
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Fund.
The
Fund
reimburses
Putnam
Management
an
allocated
amount
for
the
compensation
and
related
expenses
of
certain
officers
of
the
Fund
and
their
staff
who
provide
administrative
services
to
the
Fund.
The
aggregate
amount
of
all
such
reimbursements
is
determined
annually
by
the
Trustees.
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.
Annualized
Fee
Rate
Net
Assets
0.780%
of
the
first
$5
billion,
0.730%
of
the
next
$5
billion,
0.680%
of
the
next
$10
billion,
0.630%
of
the
next
$10
billion,
0.580%
of
the
next
$50
billion,
0.560%
of
the
next
$50
billion,
0.550%
of
the
next
$100
billion
and
0.545%
of
any
excess
thereafter.
Maximum
%
Approved
%
Class
IB
..................................................................
0.35%
0.25%
3
.
Transactions
with
Affiliates
(continued)
a.
Management
Fees
(continued)
Putnam
Variable
Trust
Notes
to
Financial
Statements
(unaudited)
17
franklintempleton.com
Semiannual
Report
Putnam
VT
Small
Cap
Growth
Fund
(continued)
d.
Transfer
Agent
Fees
PSERV,
an
affiliate
of
Putnam
Management,
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.
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
period
ended
June
30,
2025,
the
Fund
held
investments
in
affiliated
management
investment
companies
as
follows:
aa
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
a
a
a
a
a
a
a
a
Putnam
VT
Small
Cap
Growth
Fund
Non-Controlled
Affiliates
Dividends
Putnam
Short
Term
Investment
Fund,
Class
P,
4.581%
......
$314,756
$4,327,390
$(3,841,136)
$-
$-
$801,010
801,010
$12,410
Non-Controlled
Affiliates
Income
from
securities
loaned
Putnam
Cash
Collateral
Pool,
LLC,
4.608%
.............
$356,305
$3,973,180
$(3,743,285)
$-
$-
$586,200
586,200
$9,223
Total
Affiliated
Securities
...
$671,061
$8,300,570
$(7,584,421)
$-
$-
$1,387,210
$21,633
3
.
Transactions
with
Affiliates
(continued)
Putnam
Variable
Trust
Notes
to
Financial
Statements
(unaudited)
18
franklintempleton.com
Semiannual
Report
Putnam
VT
Small
Cap
Growth
Fund
(continued)
g.
Waiver
and
Expense
Reimbursements
Putnam
Management
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.
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
period
ended
June
30,
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.
5.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
At
December
31,
2024,
the
capital
loss
carryforwards
were
as
follows:
At
June
30,
2025,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation) for
income
tax
purposes
were
as
follows:
6.
Investment
Transactions
Purchases
and
sales
of
investments (excluding
short
term
securities) for
the
period
ended
June
30,
2025,
aggregated
$10,097,307 and
$9,946,143,
respectively.
At
June
30,
2025,
in
connection
with
securities
lending
transactions,
the
Fund
loaned
equity
investments
and
received
$586,200
of
cash
collateral.
The
gross
amount
of
recognized
liability
for
such
transactions
is
included
in
payable
upon
return
of
securities
loaned
in
the
Statement
of
Assets
and
Liabilities.
The
agreements
can
be
terminated
at
any
time.
7.
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
matures
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.
Capital
loss
carryforwards
not
subject
to
expiration:
Long
term
................................................................................
$
51,729
Cost
of
investments
..........................................................................
$25,962,276
Unrealized
appreciation
........................................................................
$10,946,677
Unrealized
depreciation
........................................................................
(826,483)
Net
unrealized
appreciation
(depreciation)
..........................................................
$10,120,194
3
.
Transactions
with
Affiliates
(continued)
Putnam
Variable
Trust
Notes
to
Financial
Statements
(unaudited)
19
franklintempleton.com
Semiannual
Report
Putnam
VT
Small
Cap
Growth
Fund
(continued)
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.
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.
8.
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.
At
June
30,
2025,
all
of
the Fund's
investments
in
financial
instruments
carried
at
fair
value
were
valued
using
Level 1
inputs.
9.
Operating
Segments
The
Fund has adopted
the
FASB
Accounting
Standards
Update
(ASU)
2023-07,
Segment
Reporting
(Topic
280)
-
Improvements
to
Reportable
Segment
Disclosures.
The
update
is
limited
to
disclosure
requirements
and
does
not
impact
the Fund's
financial
position
or
results
of
operations.
The Fund operates
as
a
single
operating
segment,
which
is
an
investment
portfolio.
The
Fund's Investment
manager
serves
as
the
Chief
Operating
Decision
Maker
(CODM),
evaluating
fund-wide
results
and
performance
under
a
unified
investment
strategy.
The
CODM
uses
these
measures
to
assess
fund
performance
and
allocate
resources
effectively.
Internal
reporting
provided
to
the
CODM
aligns
with
the
accounting
policies
and
measurement
principles
used
in
the financial
statements.
7.
Credit
Facility
(continued)
Putnam
Variable
Trust
Notes
to
Financial
Statements
(unaudited)
20
franklintempleton.com
Semiannual
Report
Putnam
VT
Small
Cap
Growth
Fund
(continued)
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.
10.
New
Accounting
Pronouncements
In
December
2023,
the
FASB
issued
ASU
No.
2023-09,
Income
Taxes
(Topic
740)
-
Improvements
to
Income
Tax
Disclosures.
The
amendments
enhance
income
tax
disclosures
by
requiring
greater
disaggregation
in
the
rate
reconciliation
and
income
taxes
paid
by
jurisdiction,
while
removing
certain
disclosure
requirements.
The
ASU
is
effective
for
annual
periods
beginning
after
December
15,
2024,
with
early
adoption
permitted.
Management
is
currently
evaluating
the
impact
and
believes
that
the
adoption
of
the
ASU
will
not
have
a
material
impact
on
the
financial
statements.
11.
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.
Abbreviations
Selected
Portfolio
ADR
American
Depositary
Receipt
9.
Operating
Segments
(continued)
Putnam
Variable
Trust
21
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Putnam
VT
Small
Cap
Growth
Fund
Trustee
approval
of
management
contracts
Consideration
of
your
fund's
management
and
sub-advisory
contracts
At
their
meeting
on
June
27,
2025,
the
Board
of
Trustees
("Board")
of
your
fund,
including
all
of
the
Trustees
who
are
not
"interested
persons"
(as
this
term
is
defined
in
the
Investment
Company
Act
of
1940,
as
amended
(the
"1940
Act"))
of
the
Putnam
mutual
funds
and
exchange-traded
funds
(collectively,
the
"funds")
(the
"Independent
Trustees")
approved
the
continuance
of
a
management
contract
with
Putnam
Investment
Management,
LLC
(the
"Advisor"),
a
subadvisory
agreement
between
the
Advisor
and
its
affiliate,
Franklin
Templeton
Investment
Management
Limited
("FTIML"),
and
a
subadvisory
agreement
between
the
Advisor
and
Franklin
Advisers,
Inc.
("Franklin
Advisers"
and
together
with
FTIML,
the
"Subadvisors")
(collectively,
the
"Management
Contracts").
The
Advisor,
FTIML,
and
Franklin
Advisers
are
each
direct
or
indirect
wholly-owned
subsidiaries
of
Franklin
Resources,
Inc.
(together
with
its
subsidiaries,
"Franklin
Templeton").
General
conclusions
The
Board
oversees
the
management
of
each
fund
and,
as
required
by
law,
determines
annually
whether
to
approve
the
continuance
of
your
fund's
management
contract
with
the
Advisor
and
the
sub-advisory
contract
with
respect
to
your
fund
between
the
Advisor
and
each
Subadvisor.
Because
the
Subadvisors
are
affiliates
of
the
Advisor
and
the
Advisor
remains
fully
responsible
for
all
services
provided
by
the
Subadvisors,
the
Trustees
did
not
attempt
to
evaluate
the
Subadvisors
as
separate
entities.
All
references
to
the
Advisor
describing
the
Board's
considerations
should
be
deemed
to
include
references
to
the
applicable
Subadvisor
as
necessary
or
appropriate
in
the
context.
The
Board,
with
the
assistance
of
its
Contract
Committee,
requests
and
evaluates
all
information
it
deems
reasonably
necessary
under
the
circumstances
in
connection
with
its
annual
contract
review. The
Contract
Committee
consists
solely
of
Independent
Trustees.
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
Putnam
Variable
Trust
22
franklintempleton.com
Semiannual
Report
At
the
outset
of
the
review
process,
the
Board's
independent
staff
and
independent
legal
counsel,
as
defined
in
Rule
0-1(a)
(6)
under
the
1940
Act
(their
"independent
legal
counsel"),
considered
any
possible
changes
to
the
annual
contract
review
materials
furnished
to
the
Contract
Committee
in
prior
years
and,
as
applicable,
identified
those
changes
to
the
Advisor.
Following
these
discussions
and
in
consultation
with
the
Contract
Committee,
the
Independent
Trustees'
independent
legal
counsel
submitted
an
initial
request
that
the
Advisor
and
its
affiliates
furnish
specified
information,
together
with
any
additional
information
the
Advisor
considered
relevant,
to
the
Contract
Committee.
Over
the
course
of
several
months
ending
in
June
2025,
the
Contract
Committee
met
on
a
number
of
occasions
with
representatives
of
the
Advisor,
and
separately
in
executive
session,
to
consider
the
information
that
the
Advisor
provided,
including
information
provided
in
response
to
supplemental
requests
submitted
by
independent
legal
counsel.
Throughout
this
process,
the
Contract
Committee
was
assisted
by
the
Board's
independent
staff
and
by
independent
legal
counsel.
At
the
Board's
June
2025
meeting,
the
Contract
Committee
met
in
executive
session
to
discuss
and
consider
its
recommendations
with
respect
to
the
continuance
of
the
Management
Contracts.
At
that
meeting,
the
Contract
Committee
also
met
in
executive
session
with
the
other
Independent
Trustees
to
review
a
summary
of
the
process
undertaken
by
the
Contract
Committee
and
key
information
that
the
Contract Committee
considered
in
the
course
of
its
review.
The
Contract
Committee
then
presented
its
written
report,
which
summarized
the
key
factors
that
the
Committee
had
considered
and
set
forth
its
recommendations.
The
Contract
Committee
recommended,
and
the
Independent
Trustees
approved,
the
continuance
of
your
fund's
Management
Contracts,
effective
July
1,
2025.
In
considering
the
continuance
of
the
Management
Contracts,
the
Board
took
into
account
a
number
of
factors,
including:
1.
That
the
fee
schedule
in
effect
for
your
fund
represented
reasonable
compensation
in
light
of
the
nature
and
quality
of
the
services
being
provided
to
the
fund,
the
fees
paid
by
competitive
funds,
the
costs
incurred
by
the
Advisor
in
providing
services
to
the
fund
and
the
application
of
certain
reductions
and
waivers
noted
below;
2.
That
the
fee
schedule
in
effect
for
your
fund
represented
an
appropriate
sharing
between
fund
shareholders
and
the
Advisor
of
any
economies
of
scale
that
may
exist
in
the
management
of
the
fund
at
current
asset
levels;
3.
That
the
funds
benefited,
and
were
expected
to
continue
to
benefit,
from
Franklin
Templeton's
large
retail
and
institutional
global
distribution
capabilities
and
significant
network
of
intermediary
relationships,
which
may
provide
additional
opportunities
for
the
funds
to
increase
assets
and
reduce
the
impact
of
expenses
by
spreading
them
over
a
larger
asset
base;
4.
Potential
benefits
to
shareholders
of
the
funds
that
could
result
from
the
alignment
of
certain
fund
features
and
shareholder
benefits
with
those
of
other
funds
sponsored
by
the
Advisor
and
its
affiliates
and
access
to
a
broader
array
of
investment
opportunities;
and
5.
The
financial
strength,
reputation,
experience
and
resources
of
Franklin
Templeton
and
its
investment
advisory
subsidiaries.
These
conclusions
were
based
on
a
comprehensive
consideration
of
all
information
provided
to
the
Trustees
and
were
not
the
result
of
any
single
factor.
Some
of
the
factors
that
figured
particularly
in
the
Trustees'
deliberations
and
how
the
Trustees
considered
these
factors
are
described
below,
although
individual
Trustees
may
have
evaluated
the
information
presented
differently,
giving
different
weights
to
various
factors.
It
is
also
important
to
recognize
that
the
management
arrangements
for
your
fund
and
the
other
funds
are
the
result
of
many
years
of
review
and
discussion
between
the
Independent
Trustees
and
management,
occurring
both
in
connection
with
formal
contract
reviews
as
well
as
throughout
the
year
and
that
the
Trustees'
conclusions
may
be
based,
in
part,
on
their
consideration
of
fee
arrangements
in
previous
years.
For
example,
with
certain
exceptions
primarily
involving
newer
funds
(including
the
exchange-traded
funds)
or
repositioned
funds,
the
current
fee
arrangements
under
the
vast
majority
of
the
funds'
management
contracts
were
first
implemented
at
the
beginning
of
2010
following
extensive
review
by
the
Contract
Committee
and
discussions
with
management,
as
well
as
approval
by
shareholders.
Putnam
Variable
Trust
23
franklintempleton.com
Semiannual
Report
Management
fee
schedules
and
total
expenses
The
Trustees
reviewed
the
management
fee
schedules
in
effect
for
all
funds,
including
fee
levels
and
any
breakpoints.
Under
its
management
contract,
your
fund
has
the
benefit
of
breakpoints
in
its
management
fee
schedule
that
provide
shareholders
with
reduced
fee
levels
as
assets
under
management
of
other
mutual
funds
sponsored
by
the
applicable
Advisor
(or
that
have
been
deemed
to
be
sponsored
by
the
Advisor
for
the
purpose
of
the
management
fee
calculation)
increase.
The
Trustees
also
reviewed
the
total
expenses
of
each
fund,
recognizing
that
in
most
cases
management
fees
represented
the
major,
but
not
the
sole,
determinant
of
total
costs
to
fund
shareholders.
(Two
mutual
funds
and
each
of
the
exchange-traded
funds
have
implemented
(or,
in
the
case
of
ten
municipal
income
funds
that
are
converting
into
exchange-traded
funds,
will
implement)
so-
called
"all-in"
or
unitary
management
fees
covering
substantially
all
routine
fund
operating
costs.)
In
reviewing
fees
and
expenses,
the
Trustees
generally
focus
their
attention
on
material
changes
in
circumstances
-
for
example,
changes
in
assets
under
management,
changes
in
a
fund's
investment
strategy,
changes
in
the
Advisor's
operating
costs
or
profitability,
or
changes
in
competitive
practices
in
the
fund
industry
-
that
suggest
that
consideration
of
fee
changes
might
be
warranted.
The
Trustees
concluded
that
the
circumstances
did
not
indicate
that
changes
to
the
management
fee
schedule
for
your
fund
would
be
appropriate
at
this
time.
As
in
the
past,
the
Trustees
also
focused
on
the
competitiveness
of
each
fund's
total
expense
ratio.
The
Trustees,
the
Advisor
and
the
funds'
investor
servicing
agent,
Putnam
Investor
Services,
Inc.
("PSERV"),
have
implemented
expense
limitations
that
were
in
effect
during
your
fund's
fiscal
year
ending
in
2024.
These
expense
limitations
were:
(i)
a
contractual
expense
limitation
applicable
to
specified
mutual
funds
(including
your
fund)
of
25
basis
points
on
investor
servicing
fees
and
expenses
and
(ii)
a
contractual
expense
limitation
applicable
to
specified
mutual
funds
(including
your
fund)
of
20
basis
points
on
so-called
"other
expenses"
(i.e.,
all
expenses
exclusive
of
management
fees,
distribution
fees,
investor
servicing
fees,
investment-related
expenses,
interest,
taxes,
brokerage
commissions,
acquired
fund
fees
and
expenses
and
extraordinary
expenses).
These
expense
limitations
attempt
to
maintain
competitive
expense
levels
for
the
funds.
Most
funds
had
sufficiently
low
expenses
that
these
expense
limitations
were
not
operative
during
their
fiscal
years
ending
in
2024.
However,
in
the
case
of
your
fund,
the
second
expense
limitation
applied
during
its
fiscal
year
ending
in
2024.
The
Advisor
and
PSERV
have
agreed
to
maintain
these
expense
limitations
until
at
least
April
30,
2027.
The
Advisor
and
PSERV's
commitment
to
these
expense
limitation
arrangements,
which
were
intended
to
support
an
effort
to
have
the
mutual
fund
expenses
meet
competitive
standards,
was
an
important
factor
in
the
Trustees'
decision
to
approve
the
continuance
of
your
fund's
Management
Contracts.
The
Trustees
reviewed
comparative
fee
and
expense
information
for
a
custom
group
of
competitive
funds
selected
by
Broadridge
Financial
Solutions,
Inc.
("Broadridge").
This
comparative
information
included
your
fund's
percentile
ranking
for
effective
management
fees
and
total
expenses
(excluding
any
applicable
12b-1
fees),
which
provides
a
general
indication
of
your
fund's
relative
standing.
In
the
custom
peer
group,
your
fund
ranked
in
the
first
quintile
in
effective
management
fees
(determined
for
your
fund
and
the
other
funds
in
the
custom
peer
group
assuming
the
same
fund
asset
size
for
your
fund
and
the
other
funds
in
the
custom
peer
group
and
the
applicable
contractual
management
fee
schedule)
and
in
the
second
quintile
in
total
expenses
(excluding
any
applicable
12b-1
fees)
as
of
December
31,
2024.
The
first
quintile
represents
the
least
expensive
funds
and
the
fifth
quintile
the
most
expensive
funds.
The
fee
and
expense
data
reported
by
Broadridge
as
of
December
31,
2024
reflected
the
most
recent
fiscal
year-end
data
available
in
Broadridge's
database
at
that
time.
In
connection
with
their
review
of
fund
management
fees
and
total
expenses,
the
Trustees
also
reviewed
the
costs
of
the
services
provided
and
the
profits
realized
by
the
Advisor
and
its
affiliates
from
their
contractual
relationships
with
the
funds.
This
information
included
trends
in
revenues,
expenses
and
profitability
of
the
Advisor
and
its
affiliates
relating
to
the
investment
management,
investor
servicing
and
distribution
services
provided
to
the
funds,
as
applicable.
In
this
regard,
the
Trustees
also
reviewed
an
analysis
of
the
revenues,
expenses
and
profitability
of
the
Advisor
and
its
affiliates,
allocated
on
a
fund-by-fund
basis,
with
respect
to
(as
applicable)
the
funds'
management,
distribution
and
investor
servicing
contracts.
For
each
fund,
the
analysis
presented
information
about
revenues,
expenses
and
profitability
in
2024
for
each
of
the
applicable
Putnam
Variable
Trust
24
franklintempleton.com
Semiannual
Report
agreements
separately
and
for
the
agreements
taken
together
on
a
combined
basis.
The
Trustees
concluded
that,
at
current
asset
levels,
the
fee
schedules
in
place
for
each
of
the
funds,
including
the
fee
schedule
for
your
fund,
represented
reasonable
compensation
for
the
services
being
provided
and
represented
an
appropriate
sharing
between
fund
shareholders
and
the
Advisor
of
any
economies
of
scale
as
may
exist
in
the
management
of
the
funds
at
that
time.
The
information
examined
by
the
Trustees
in
connection
with
their
annual
contract
review
for
the
funds
included
information
regarding
services
provided
and
fees
charged
by
the
Advisor
and
certain
affiliates
to
other
clients
in
similar
asset
categories,
including
other
1940
Act
funds
advised
by
the
Adviser
but
overseen
by
a
board
of
trustees
other
than
the
Board,
sub-advised
U.S.
mutual
funds,
exchange-traded
funds,
other
U.S.
products
(such
as
collective
investment
trusts,
private
funds,
and
separately
managed
and
institutional
accounts),
non-U.S.
funds,
and
other
non-U.S.
products.
This
information
included,
for
products
that
are
managed
by
the
same
portfolio
team
in
a
similar
asset
category
to
those
of
the
funds,
comparisons
of
the
fees
charged
to
other
clients,
by
category,
with
fees
charged
to
the
funds,
as
well
as
a
detailed
assessment
of
the
differences
in
the
services
provided
to
these
clients
as
compared
to
the
services
provided
to
the
funds.
The
Trustees
observed
that
the
differences
in
fee
rates
between
these
clients
and
the
funds
are
by
no
means
uniform
when
examined
by
individual
asset
classes,
suggesting
that
differences
in
the
pricing
of
investment
management
services
to
these
types
of
clients
may
reflect,
among
other
things,
historical
competitive
forces
operating
in
separate
marketplaces,
the
characteristics
of
different
clients,
the
particulars
of
different
fee
structures,
factors
unique
to
specific
market
segments,
and
the
distinct
risks
and
costs
associated
with
providing
services
to
different
clients.
The
Trustees
considered
the
fact
that
in
many
cases
fee
rates
across
different
asset
classes
are
higher
on
average
for
1940
Act-registered
funds
than
for
other
clients,
and
the
Trustees
also
considered
the
differences
between
the
services
that
the
Advisor
provides
to
the
funds
and
those
that
it
provides
to
its
other
clients.
The
Trustees
did
not
rely
on
these
fee
comparisons
to
any
significant
extent
in
concluding
that
the
management
fees
paid
by
your
fund
are
reasonable.
Investment
performance
The
quality
of
the
investment
process
provided
by
the
Advisor
represented
a
major
factor
in
the
Trustees'
evaluation
of
the
quality of
services
provided
by
the
Advisor
under
your
fund's
management
contract.
The
Trustees
were
assisted
in
their
review
of
the
Advisor's
investment
process
and
performance
by
the
work
of
the
investment
oversight
committees
of
the
Trustees
and
the
full
Board,
which
meet
on
a
regular
basis
with
individual
portfolio
managers
and
with
senior
investment
management
of
the
Advisor
throughout
the
year.
The
Trustees
concluded
that
the
Advisor
generally
provides
a
high-quality
investment
process
-
based
on
the
experience
and
skills
of
the
individuals
assigned
to
the
management
of
fund
portfolios,
the
resources
made
available
to
them
and
in
general
the
Advisor's
ability
to
attract
and
retain
high-quality
personnel
-
but
also
recognized
that
this
does
not
guarantee
favorable
investment
results
for
every
fund
in
every
time
period.
The
Trustees
considered
that,
in
the
aggregate,
peer-relative
and
benchmark-relative
fund
performance
was
strong
in
2024
against
a
constructive
yet
complex
investing
environment.
The
S&P
500
was
up
25%
in
2024,
but
significant
concentration
of
returns
among
large
cap
and
technology
stocks
and
periods
of
volatility
posed
challenges
in
the
market.
The
Bloomberg
Aggregate
fixed
income
index
was
up
slightly
over
1%
amidst
many
moving
pieces,
with
the
Federal
Reserve
cutting
the
Effective
Federal
Funds
rate
from
5.25%
at
year-end
2023
to
4.25%
at
year-end
2024,
with
three
cuts
in
the
latter
part
of
the
year,
while
also
trying
to
manage
inflation
concerns.
Ten-year
Treasury
yields
ended
2024
at
4.6%
up
from
3.9%
at
year-end
2023.
Corporate
earnings
and
employment
figures
continued
to
generally
show
strength
during
the
year,
while
geopolitical
tensions
were
closely
watched.
For
the
one-year
period
ended
December
31,
2024,
the
Trustees
noted
that
the
funds,
on
an
asset-weighted
basis,
ranked
in
the
27th
percentile
of
their
peers
as
determined
by
Lipper
Inc.
("Lipper")
and,
on
an
asset-weighted
basis,
outperformed
their
benchmarks
by
3.0%
gross
of
fees
over
the
one-year
period.
The
Committee
also
noted
that
the
funds'
aggregate
performance
over
longer-term
periods
continued
to
be
strong,
with
the
funds,
on
an
asset-weighted
basis,
ranking
in
the
20th,
22nd
and
20th
percentiles
of
their
Lipper
peers
over
the
three-year,
five-year
and
ten-year
periods
ended
December
31,
2024,
respectively.
The
Trustees
further
noted
that
the
funds,
in
the
aggregate,
outperformed
their
benchmarks
on
a
gross
basis
for
Putnam
Variable
Trust
25
franklintempleton.com
Semiannual
Report
each
of
the
three-year,
five-year
and
ten-year
periods.
The
Trustees
also
considered
the
Morningstar
Inc.
ratings
assigned
to
the
funds
and
that
52
funds
were
rated
four
or
five
stars
at
the
end
of
2024,
which
represented
an
increase
of
seven
funds
year-over-year.
The
Trustees
also
considered
that
25
funds
were
five-star
rated
at
the
end
of
2024,
which
was
also
a
year-
over-year
increase
of
seven
funds.
The
Board
noted,
however,
the
disappointing
investment
performance
of
some
funds
for
periods
ended
December
31,
2024
and
considered
information
provided
by
the
Advisor
regarding
the
factors
contributing
to
the
underperformance
and,
where
relevant,
actions
being
taken
to
improve
the
performance
of
these
particular
funds.
The
Trustees
indicated
their
intention
to
continue
to
monitor
the
performance
of
those
funds.
For
purposes
of
the
Trustees'
evaluation
of
the
funds'
investment
performance,
the
Trustees
generally
focus
on
a
competitive
industry
ranking
of
each
fund's
total
net
return
over
a
one-year,
three-year
and
five-year
period.
For
a
number
of
funds
with
relatively
unique
investment
mandates
for
which
the
Advisor
informed
the
Trustees
that
meaningful
competitive
performance
rankings
are
not
considered
to
be
available,
the
Trustees
evaluated
performance
based
on
their
total
gross
and
net
returns
and
comparisons
of
those
returns
to
the
returns
of
selected
investment
benchmarks.
In
the
case
of
your
fund,
the
Trustees
considered
that
its
class
IA
share
cumulative
total
return
performance
at
net
asset
value
was
in
the
following
quartiles
of
its
Lipper
peer
group
(Lipper
Variable
Insurance
Products
(Underlying
Funds)
-
Small-Cap
Growth
Funds)
for
the
one-year,
three-
year
and
five-year
periods
ended
December
31,
2024
(the
first
quartile
representing
the
best-performing
funds
and
the
fourth
quartile
the
worst-performing
funds):
For
the
one-,
three-,
and
five-year
periods
ended
December
31,
2024,
your
fund's
performance
was
in
the
top
decile
of
its
Lipper
peer
group.
Over
the
one-year,
three-year
and
five-year
periods
ended
December
31,
2024,
there
were
84
funds
in
your
fund's
Lipper
peer
group.
(When
considering
performance
information,
shareholders
should
be
mindful
that
past
performance
is
not
a
guarantee
of
future
results.)
The
Trustees
noted
that
the
Advisor
had
made
internal
promotions
and
other
portfolio
management
assignment
changes
in
2024
to
strengthen
its
investment
teams
providing
services
to
the
funds.
Brokerage
and
soft-dollar
allocations;
distribution
and
investor
servicing
The
Trustees
considered
various
potential
benefits
that
the
Advisor
may
receive
in
connection
with
the
services
it
provides
under
the
management
contract
with
your
fund.
These
include
benefits
related
to
brokerage
allocation
and
the
use
of
soft
dollars,
whereby
a
portion
of
the
commissions
paid
by
a
fund
for
brokerage
may
be
used
to
acquire
research
services
that
are
expected
to
be
useful
to
the
Advisor
in
managing
the
assets
of
the
fund
and
of
other
clients.
Subject
to
policies
approved
by
the
Trustees,
soft
dollars
generated
by
these
means
may
be
used
to
acquire
brokerage
and
research
services
(including
proprietary
executing
broker
research,
third-party
research
and
market
data)
that
enhance
the
Advisor's
investment
capabilities
and
supplement
the
Advisor's
internal
research
efforts.
The
Trustees
indicated
their
continued
intent
to
monitor
regulatory
and
industry
developments
in
this
area
with
the
assistance
of
their
Contract
Committee.
In
addition,
with
the
assistance
of
their
Contract
Committee,
the
Trustees
indicated
their
continued
intent
to
monitor
the
allocation
of
the
funds'
brokerage
in
order
to
ensure
that
the
principle
of
seeking
best
price
and
execution
remains
paramount
in
the
portfolio
trading
process.
The
Advisor
may
also
receive
benefits
from
payments
that
funds
make
to
the
Advisor
for
distribution
services
and
investor
services.
In
conjunction
with
the
annual
review
of
your
fund's
management
and
sub-advisory
contracts,
the
Trustees
reviewed
your
fund's
investor
servicing
agreement
with
PSERV
and
its
distributor's
contract
and
distribution
plans
with
Franklin
Distributors,
LLC
("Franklin
Distributors"),
both
of
which
are
affiliates
of
the
Advisor.
The
Trustees
concluded
that
the
fees
payable
by
the
mutual
funds
to
PSERV
and
Franklin
Distributors
for
such
services
were fair
and
reasonable
in
relation
to
One-year
period
Three-year
period
Five-year
period
1st
1st
1st
Putnam
Variable
Trust
26
franklintempleton.com
Semiannual
Report
the
nature
and
quality
of
such
services,
the
fees
paid
by
competitive
funds
and
the
costs
incurred
by
PSERV
and
Franklin
Distributors
in
providing
such
services.
Furthermore,
the
Trustees
were
of
the
view
that
the
investor
services
provided
by
PSERV
were
required
for
the
operation
of
the
mutual
funds,
and
that
they
were
of
a
quality
at
least
equal
to
those
provided
by
other
providers.
38948-SFSOI
08/25
©
2025
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 EQUITY 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. |
(a) (1) Not applicable.
Exhibit 99.CODE ETH
(a) (3) Certifications pursuant to section 302 of the Sarbanes-Oxley Act of 2002 attached hereto.
Exhibit 99.CERT
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto.
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: | August 26, 2025 |
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: | August 26, 2025 |
| By: | /s/ Jeffrey White | |
| Jeffrey White | ||
| Principal Financial Officer | ||
| Date: | August 26, 2025 |
Putnam Variable Trust published this content on August 26, 2025, and is solely responsible for the information contained herein. Distributed via Edgar on August 26, 2025 at 17:53 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]