N-Q 1 a_vtvoyager.htm PUTNAM VARIABLE TRUST a_vtvoyager.htm


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

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY



Investment Company Act file number: (811-05346)
Exact name of registrant as specified in charter: Putnam Variable Trust
Address of principal executive offices: One Post Office Square, Boston, Massachusetts 02109
Name and address of agent for service: Robert T. Burns, Vice President
One Post Office Square
Boston, Massachusetts 02109
Copy to:         John W. Gerstmayr, Esq.
Ropes & Gray LLP
800 Boylston Street
Boston, Massachusetts 02199-3600
Registrant’s telephone number, including area code: (617) 292-1000
Date of fiscal year end: December 31, 2013
Date of reporting period: March 31, 2013



Item 1. Schedule of Investments:













Putnam VT Voyager Fund

The fund's portfolio
3/31/13 (Unaudited)
COMMON STOCKS (90.4%)(a)
Shares Value
Aerospace and defense (3.4%)
General Dynamics Corp. 61,300 $4,322,263
Honeywell International, Inc. 114,900 8,657,715
L-3 Communications Holdings, Inc. 4,306 348,442
Northrop Grumman Corp. 11,500 806,725
Precision Castparts Corp. 21,100 4,000,982
United Technologies Corp. 101,200 9,455,116
27,591,243
Airlines (0.4%)
Delta Air Lines, Inc.(NON) 176,670 2,916,822
2,916,822
Auto components (2.0%)
American Axle & Manufacturing Holdings, Inc.(NON)(S) 1,019 13,909
Goodyear Tire & Rubber Co. (The)(NON) 133,227 1,679,992
Johnson Controls, Inc. 328,251 11,511,763
Valeo SA (France) 45,934 2,485,642
15,691,306
Automobiles (1.4%)
Daimler AG (Registered Shares) (Germany) 20,988 1,141,918
Fiat SpA (Italy)(NON) 280,380 1,491,532
General Motors Co.(NON) 148,100 4,120,142
Nissan Motor Co., Ltd. (Japan) 126,900 1,219,998
Tata Motors, Ltd. (India) 321,054 1,593,172
Tesla Motors, Inc.(NON)(S) 45,095 1,708,650
11,275,412
Biotechnology (3.2%)
Celgene Corp.(NON) 102,500 11,880,775
Dendreon Corp.(NON)(S) 297,800 1,408,594
Elan Corp. PLC ADR (Ireland)(NON)(S) 213,592 2,520,386
Gilead Sciences, Inc.(NON) 203,500 9,957,255
25,767,010
Building products (0.9%)
Fortune Brands Home & Security, Inc.(NON) 125,000 4,678,750
Owens Corning, Inc.(NON) 71,777 2,830,167
7,508,917
Capital markets (1.9%)
Charles Schwab Corp. (The) 343,900 6,083,591
Goldman Sachs Group, Inc. (The) 8,000 1,177,200
KKR & Co. LP 75,790 1,464,263
Morgan Stanley 235,700 5,180,686
State Street Corp. 16,597 980,717
14,886,457
Chemicals (3.8%)
Celanese Corp. Ser. A 56,700 2,497,635
HB Fuller Co. 11,047 427,353
Huntsman Corp. 236,600 4,398,394
LyondellBasell Industries NV Class A 65,700 4,158,153
Methanex Corp. (Canada) 56,800 2,307,784
Monsanto Co. 74,000 7,816,620
Tronox, Ltd. Class A(S) 454,484 9,003,328
30,609,267
Commercial banks (0.7%)
Bank of Ireland (Ireland)(NON) 6,531,936 1,289,437
Credicorp, Ltd. (Peru)(S) 8,100 1,345,005
UniCredit SpA (Italy)(NON) 697,242 2,976,221
5,610,663
Commercial services and supplies (0.5%)
ADT Corp. (The)(S) 16,100 787,934
Tyco International, Ltd. 104,220 3,335,040
4,122,974
Communications equipment (4.8%)
Arris Group, Inc.(NON) 98,100 1,684,377
Cisco Systems, Inc. 104,493 2,184,949
F5 Networks, Inc.(NON) 7,700 685,916
Polycom, Inc.(NON) 840,512 9,312,873
Qualcomm, Inc. 371,991 24,904,797
38,772,912
Computers and peripherals (10.9%)
Apple, Inc. 138,189 61,166,597
EMC Corp.(NON) 788,100 18,827,709
Gemalto NV (Netherlands) 31,310 2,731,170
Hewlett-Packard Co. 84,300 2,009,712
Toshiba Corp. (Japan) 511,000 2,562,193
87,297,381
Construction materials (0.1%)
HeidelbergCement AG (Germany) 17,274 1,241,319
1,241,319
Consumer finance (0.2%)
Capital One Financial Corp. 22,746 1,249,893
1,249,893
Containers and packaging (0.3%)
MeadWestvaco Corp. 36,900 1,339,470
Rock-Tenn Co. Class A 9,400 872,226
2,211,696
Diversified financial services (2.3%)
Bank of America Corp. 26,400 321,552
Citigroup, Inc. 139,900 6,189,176
CME Group, Inc. 85,200 5,230,428
JPMorgan Chase & Co. 141,150 6,698,979
18,440,135
Electrical equipment (0.5%)
Eaton Corp PLC 61,900 3,791,375
3,791,375
Electronic equipment, instruments, and components (0.5%)
Corning, Inc. 119,100 1,587,603
Hollysys Automation Technologies, Ltd. (China)(NON)(S) 12,108 147,597
Hon Hai Precision Industry Co., Ltd. (Taiwan) 866,000 2,412,434
4,147,634
Energy equipment and services (3.8%)
Halliburton Co. 319,879 12,926,310
McDermott International, Inc.(NON) 305,800 3,360,742
Nabors Industries, Ltd. 120,300 1,951,266
Petrofac, Ltd. (United Kingdom) 127,883 2,784,488
Schlumberger, Ltd. 122,425 9,168,408
30,191,214
Food and staples retail (0.5%)
Kroger Co. (The) 119,200 3,950,288
3,950,288
Food products (0.4%)
Mead Johnson Nutrition Co. 30,998 2,400,795
Pinnacle Foods, Inc.(NON) 23,024 460,480
2,861,275
Health-care equipment and supplies (0.7%)
Baxter International, Inc. 53,000 3,849,920
Covidien PLC 12,800 868,352
St. Jude Medical, Inc.(S) 16,996 687,318
5,405,590
Health-care providers and services (2.2%)
Aetna, Inc.(S) 34,600 1,768,752
Catamaran Corp.(NON) 23,864 1,265,508
Emeritus Corp.(NON) 40,736 1,132,053
Express Scripts Holding Co.(NON) 91,469 5,273,188
Humana, Inc.(S) 8,200 566,702
Tenet Healthcare Corp.(NON) 3,900 185,562
UnitedHealth Group, Inc. 127,800 7,311,438
17,503,203
Hotels, restaurants, and leisure (1.6%)
Las Vegas Sands Corp. 15,445 870,326
Sands China, Ltd. (Hong Kong) 824,000 4,274,565
Starbucks Corp. 134,000 7,632,640
12,777,531
Household durables (0.5%)
Sony Corp. (Japan)(S) 50,500 880,873
Techtronic Industries Co. (Hong Kong) 1,148,000 2,810,994
3,691,867
Household products (0.2%)
Colgate-Palmolive Co. 17,000 2,006,510
2,006,510
Insurance (2.5%)
American International Group, Inc.(NON) 31,600 1,226,712
Assured Guaranty, Ltd. 479,977 9,892,326
Genworth Financial, Inc. Class A(NON) 219,300 2,193,000
Hartford Financial Services Group, Inc. (The)(S) 5,971 154,052
MetLife, Inc. 126,100 4,794,322
Prudential PLC (United Kingdom) 137,701 2,228,297
20,488,709
Internet and catalog retail (0.8%)
Amazon.com, Inc.(NON) 8,900 2,371,761
HomeAway, Inc.(NON) 47,000 1,527,500
Priceline.com, Inc.(NON) 4,003 2,753,784
6,653,045
Internet software and services (7.4%)
eBay, Inc.(NON) 177,800 9,640,316
Facebook, Inc. Class A(NON) 384,943 9,846,842
Facebook, Inc. Class B(F)(NON) 24,080 615,966
Google, Inc. Class A(NON) 38,203 30,334,328
LinkedIn Corp. Class A(NON) 6,800 1,197,208
Millennial Media, Inc.(NON)(S) 53,800 341,630
Qihoo 360 Technology Co., Ltd. ADR (China)(NON)(S) 28,000 829,640
Yahoo!, Inc.(NON) 120,200 2,828,306
Yandex NV Class A (Russia)(NON) 175,758 4,063,525
59,697,761
IT Services (3.1%)
Cognizant Technology Solutions Corp.(NON) 15,500 1,187,455
Computer Sciences Corp.(S) 17,000 836,910
Fidelity National Information Services, Inc. 54,000 2,139,480
Total Systems Services, Inc. 72,000 1,784,160
Unisys Corp.(NON) 149,949 3,411,340
Visa, Inc. Class A(S) 93,300 15,846,072
25,205,417
Leisure equipment and products (0.4%)
Brunswick Corp.(S) 92,389 3,161,552
3,161,552
Life sciences tools and services (0.7%)
Thermo Fisher Scientific, Inc. 70,100 5,361,949
5,361,949
Machinery (0.4%)
Cummins, Inc. 19,500 2,258,295
Joy Global, Inc. 6,350 377,952
TriMas Corp.(NON) 18,531 601,702
3,237,949
Media (2.5%)
CBS Corp. Class B 17,900 835,751
Comcast Corp. Class A 200,515 8,423,635
DIRECTV(NON) 29,585 1,674,807
DISH Network Corp. Class A 199,800 7,572,420
Liberty Global, Inc. Ser. C(NON) 12,300 844,149
News Corp. Class A 21,900 668,388
20,019,150
Metals and mining (2.7%)
Barrick Gold Corp. (Canada) 79,000 2,322,600
Coeur d'Alene Mines Corp.(NON) 19,800 373,428
Freeport-McMoRan Copper & Gold, Inc. Class B (Indonesia) 265,626 8,792,221
Glencore International PLC (United Kingdom)(S) 589,589 3,190,125
Goldcorp, Inc. (Toronto Exchange) (Canada) 74,900 2,518,887
Kinross Gold Corp. (Canada) 203,000 1,609,790
Vedanta Resources PLC (United Kingdom) 91,142 1,391,781
Walter Energy, Inc. 52,000 1,482,000
21,680,832
Multiline retail (0.5%)
Macy's, Inc. 68,500 2,866,040
Target Corp. 20,100 1,375,845
4,241,885
Oil, gas, and consumable fuels (5.0%)
Alpha Natural Resources, Inc.(NON) 244,900 2,010,629
Anadarko Petroleum Corp. 73,500 6,427,575
Cabot Oil & Gas Corp. 18,200 1,230,502
Cairn Energy PLC (United Kingdom)(NON) 330,306 1,372,651
Gulfport Energy Corp.(NON) 68,600 3,143,938
Kodiak Oil & Gas Corp.(NON) 88,200 801,738
Marathon Oil Corp. 188,869 6,368,663
Noble Energy, Inc. 47,700 5,516,982
Occidental Petroleum Corp. 20,700 1,622,259
Royal Dutch Shell PLC Class A (United Kingdom) 148,040 4,788,958
Suncor Energy, Inc. (Canada) 222,700 6,683,227
39,967,122
Personal products (0.5%)
Herbalife, Ltd.(S) 105,200 3,939,740
3,939,740
Pharmaceuticals (3.0%)
AbbVie, Inc. 81,400 3,319,492
Actavis, Inc.(NON) 4,500 414,495
Auxilium Pharmaceuticals, Inc.(NON) 161,700 2,794,176
Eli Lilly & Co. 99,200 5,633,568
Jazz Pharmaceuticals PLC(NON) 111,942 6,258,677
Pfizer, Inc. 68,738 1,983,779
Warner Chilcott PLC Class A 283,000 3,834,650
24,238,837
Professional services (0.2%)
Verisk Analytics, Inc. Class A(NON) 23,342 1,438,567
1,438,567
Real estate investment trusts (REITs) (0.5%)
American Tower Corp. Class A(R) 50,700 3,899,844
3,899,844
Real estate management and development (0.2%)
Realogy Holdings Corp.(NON) 31,451 1,536,067
1,536,067
Semiconductors and semiconductor equipment (3.0%)
ASML Holding NV ADR (Netherlands) 27,000 1,836,270
Avago Technologies, Ltd. 46,600 1,673,872
First Solar, Inc.(NON) 62,388 1,681,980
Lam Research Corp.(NON) 57,200 2,371,512
Micron Technology, Inc.(NON) 172,700 1,723,546
NXP Semiconductor NV(NON) 175,598 5,313,595
Samsung Electronics Co., Ltd. (South Korea) 2,701 3,707,017
SK Hynix, Inc. (South Korea)(NON) 95,720 2,473,441
Texas Instruments, Inc.(S) 91,500 3,246,420
24,027,653
Software (2.6%)
Electronic Arts, Inc.(NON) 50,600 895,620
Longtop Financial Technologies Ltd. ADR (Hong Kong)(F)(NON) 99,123 —
Microsoft Corp. 251,000 7,181,110
Nintendo Co., Ltd. (Japan) 28,000 3,007,171
Oracle Corp. 162,761 5,263,691
Salesforce.com, Inc.(NON)(S) 3,450 616,964
SAP AG (Germany) 29,491 2,362,691
VMware, Inc. Class A(NON) 15,800 1,246,304
20,573,551
Specialty retail (4.0%)
AutoZone, Inc.(NON)(S) 3,100 1,229,987
Bed Bath & Beyond, Inc.(NON)(S) 105,850 6,818,857
Best Buy Co., Inc.(S) 142,605 3,158,701
GameStop Corp. Class A(S) 101,200 2,830,564
Lowe's Cos., Inc. 227,500 8,626,800
Office Depot, Inc.(NON)(S) 1,238,899 4,868,873
OfficeMax, Inc. 123,000 1,428,030
Staples, Inc. 159,529 2,142,474
Tile Shop Holdings, Inc.(NON)(S) 51,699 1,086,196
32,190,482
Textiles, apparel, and luxury goods (0.5%)
Coach, Inc. 34,943 1,746,801
Michael Kors Holdings, Ltd. (Hong Kong)(NON) 44,800 2,544,192
4,290,993
Thrifts and mortgage finance (0.2%)
Radian Group, Inc. 123,800 1,325,898
1,325,898
Tobacco (1.8%)
Japan Tobacco, Inc. (Japan) 142,800 4,550,911
Philip Morris International, Inc. 109,131 10,117,532
14,668,443
Trading companies and distributors (0.2%)
Mitsubishi Corp. (Japan) 80,100 1,483,128
1,483,128
Transportation infrastructure (—%)
Beijing Capital International Airport Co., Ltd. (China) 456,000 332,668
332,668
Total common stocks (cost $565,547,144) $725,181,136

WARRANTS (2.6%)(a)(NON)
Expiration date Strike Price Warrants Value
Bank of America Corp.(W) 10/28/18 $30.79 4,140,161 $3,022,318
Citigroup, Inc. 1/4/19 106.10 4,829,454 2,443,704
General Motors Co. 7/10/19 18.33 54,556 643,215
Hartford Financial Services Group, Inc. (The)(W) 6/26/19 9.79 199,172 3,403,849
JPMorgan Chase & Co.(W) 10/28/18 42.42 277,045 3,947,891
Matahari Department Store 144A (Indonesia) 3/25/16 0.00 1,386,500 1,569,486
Wells Fargo & Co.(W) 10/28/18 34.01 511,153 6,113,390
Total warrants (cost $20,479,089) $21,143,853

INVESTMENT COMPANIES (1.8%)(a)
Shares Value
CSOP FTSE China A50 ETF (China)(NON) 1,620,800 $2,121,941
iShares Dow Jones U.S. Home Construction Index Fund(S) 169,200 4,042,188
iShares FTSE A50 China Index ETF (China) 1,974,100 2,651,659
Market Vectors Gold Miners ETF 53,100 2,009,835
SPDR S&P Homebuilders ETF(S) 73,000 2,189,270
SPDR S&P Metals & Mining ETF(S) 44,600 1,800,948
Total investment Companies (cost $12,879,017) $14,815,841

PURCHASED EQUITY OPTIONS OUTSTANDING (1.0%)(a)
Expiration Contract
date/strike price amount Value
Actavis, Inc. (Call) Apr-13/$86.00 64,649 $415,862
Apple, Inc. (Call) May-13/520.00 71,037 153,882
Apple, Inc. (Call) May-13/490.00 52,704 242,431
Apple, Inc. (Call) May-13/520.00 63,766 103,519
Apple, Inc. (Call) May-13/480.00 41,061 75,963
Apple, Inc. (Call) May-13/570.00 52,704 14,751
Apple, Inc. (Call) Apr-13/470.00 116,565 53,163
Apple, Inc. (Call) Apr-13/500.00 116,565 8,506
Assured Guaranty, Ltd. (Call) Jul-13/20.00 666,280 1,184,606
Best Buy Co., Inc. (Call) Apr-13/10.00 133,543 1,622,682
Euro Stoxx 50 Price (Call) Jul-13/2,900.00 4,496 39,795
Euro Stoxx 50 Price (Call) Jun-13/2,700.00 9,369 140,873
Euro Stoxx 50 Price (Call) Jun-13/2,750.00 8,812 104,824
Euro Stoxx 50 Price (Call) Jun-13/2,825.00 8,226 90,877
Euro Stoxx 50 Price (Call) Jun-13/2,875.00 8,376 48,137
Halliburton Co. (Call) Jun-13/45.00 340,855 153,385
Hartford Financial Services Group, Inc. (The) (Call) Apr-13/20.00 146,918 852,982
Herbalife, Ltd. (Call) Aug-13/65.00 224,349 115,208
Herbalife, Ltd. (Call) Aug-13/55.00 262,919 50,175
Humana, Inc. (Call) Apr-13/60.00 20,319 190,380
iShares MSCI Emerging Markets Index (Call) Jun-13/46.00 2,042,065 284,758
SanDisk Corp. (Call) Apr-13/35.00 479 946,025
SPDR S&P 500 ETF Trust (Put) Apr-13/152.00 378,830 52,991
SPDR S&P 500 ETF Trust (Put) Apr-13/151.00 736,172 43,996
SPDR S&P 500 ETF Trust (Put) Apr-13/150.00 363,441 29,075
Xerox Corp. (Call) Apr-13/6.00 433,728 1,127,831
Total purchased equity options outstanding (cost $8,752,325) $8,146,677

CONVERTIBLE PREFERRED STOCKS (0.3%)(a)
Shares Value
Unisys Corp. Ser. A, 6.25% cv. pfd. 41,204 $2,678,260
Total convertible preferred stocks (cost $2,999,889) $2,678,260

U.S. TREASURY OBLIGATIONS (0.2%)(a)
Principal amount Value
U.S. Treasury Bonds 6.125%, November 15, 2027(i) $184,000 $272,732
U.S. Treasury Notes
     1.875%, June 30, 2015(i) 615,000 639,821
     1.375%, February 28, 2019(i) 401,000 410,552
Total U.S. treasury Obligations (cost $1,323,105) $1,323,105

SHORT-TERM INVESTMENTS (12.1%)(a)
Principal amount/shares Value
U.S. Treasury Bills with effective yields ranging from 0.15% to 0.17%, July 25, 2013(SEGSF) $1,420,000 $1,419,276
U.S. Treasury Bills zero % May 30, 2013(i) 120,000 119,988
U.S. Treasury Bills zero % December 12, 2013(i) 250,000 249,800
Putnam Cash Collateral Pool, LLC 0.19%(d) 50,188,382 50,188,382
Putnam Short Term Investment Fund 0.08%(AFF) 37,430,900 37,430,900
SSgA Prime Money Market Fund 0.02%(P) 7,752,600 7,752,600
Total short-term investments (cost $97,160,946) $97,160,946

TOTAL INVESTMENTS
Total investments (cost $709,141,515)(b) $870,449,818













FORWARD CURRENCY CONTRACTS at 3/31/13 (aggregate face value $42,653,169) (Unaudited)


Unrealized
Contract Delivery Aggregate appreciation/
Counterparty Currency type date Value face value (depreciation)
Credit Suisse International
Euro Sell 6/19/13 $16,742,035 $16,990,902 $248,867
Japanese Yen Sell 5/15/13 12,697,684 12,924,995 227,311
UBS AG
British Pound Sell 6/19/13 12,892,845 12,737,272 (155,573)
Total $320,605












WRITTEN EQUITY OPTIONS OUTSTANDING at 3/31/13 (premiums $1,715,689) (Unaudited)


Expiration       Contract
Date/strike price       amount Value
Apple, Inc. (Call) May-13/$540.00        71,037 $81,249
Apple, Inc. (Call) May-13/530.00        105,408 118,685
Apple, Inc. (Call) May-13/540.00        63,766 51,020
Apple, Inc. (Call) Apr-13/485.00        233,130 39,947
Assured Guaranty, Ltd. (Call) Jul-13/22.00        666,280 572,730
Euro Stoxx 50 Price (Call) Jul-13/3,000.00        4,496 11,332
Euro Stoxx 50 Price (Call) Jun-13/2,925.00        8,226 23,580
Euro Stoxx 50 Price (Call) Jun-13/2,975.00        8,376 11,589
Halliburton Co. (Call) Jun-13/48.00        340,855 45,433
Herbalife, Ltd. (Call) Aug-13/70.00        224,349 80,336
iShares MSCI Emerging Markets Index (Call) Jun-13/48.00        2,042,065 68,409
SPDR S&P 500 ETF Trust (Put) Apr-13/150.00        378,830 28,564
SPDR S&P 500 ETF Trust (Put) Apr-13/149.00        736,172 17,244
SPDR S&P 500 ETF Trust (Put) Apr-13/148.00        363,441 5,438
Total $1,155,556








OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 3/31/13 (Unaudited)
Upfront     Fixed payments Total return Unrealized
Swap counterparty / premium     Termination received (paid) by received by appreciation/
Notional amount received (paid)     date fund per annum or paid by fund (depreciation)
Bank of America N.A.
baskets 17,775 $—      2/25/14 (3 month USD-LIBOR-BBA plus 0.35%) A basket (MLTRENER) of common stocks $(7,552)
baskets 56,985 —      2/25/14 (3 month USD-LIBOR-BBA plus 0.18%) A basket (MLPPSEMI) of common stocks 7,847
Barclays Bank PLC
baskets 53,213 —      1/27/14 (3 month USD-LIBOR-BBA plus 0.15%) A basket (BCSU115) of common stocks 59,243
Total $59,538










Key to holding's abbreviations
ADR American Depository Receipts: represents ownership of foreign securities on deposit with a custodian bank
ETF Exchange Traded Fund
SPDR S&P Depository Receipts
Notes to the fund's portfolio
Unless noted otherwise, the notes to the fund's portfolio are for the close of the fund's reporting period, which ran from January 1, 2013 through March 31, 2013 (the reporting period). Within the following notes to the portfolio, references to “ASC 820” represent Accounting Standards Codification ASC 820 Fair Value Measurements and Disclosures, references to “Putnam Management” represent Putnam Investment Management, LLC, the fund's manager, an indirect wholly-owned subsidiary of Putnam Investments, LLC and references to “OTC”, if any, represent over-the-counter.
(a) Percentages indicated are based on net assets of $802,091,343.
(b) The aggregate identified cost on a tax basis is $736,129,710, resulting in gross unrealized appreciation and depreciation of $157,554,714 and $23,234,606, respectively, or net unrealized appreciation of $134,320,108.
(NON) Non-income-producing security.
(AFF) Affiliated company. The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period. Transactions during the period with Putnam Money Market Liquidity Fund and Putnam Short Term Investment Fund, which are under common ownership and control, were as follows:
Name of affiliate Market value at the beginning of the reporting period Purchase cost Sale proceeds Investment income Market value at the end of the reporting period
Putnam Money Market Liquidity Fund * $14,490,222 $63,525,448 $78,015,670 $4,555 $—
Putnam Short Term Investment Fund * — 65,346,474 27,915,574 2,673 37,430,900
Totals $14,490,222 $128,871,922 $105,931,244 $7,228 $37,430,900
* Management fees charged to Putnam Money Market Liquidity Fund and Putnam Short Term Investment Fund have been waived by Putnam Management.
(SEGSF) This security, in part or in entirety, was pledged and segregated with the custodian for collateral on certain derivative contracts at the close of the reporting period.
(d) Affiliated company. The fund may lend securities, through its agent, to qualified borrowers in order to earn additional income. The loans are collateralized by cash in an amount at least equal to the market value of the securities loaned. The market value of securities loaned is determined daily and any additional required collateral is allocated to the fund on the next business day. The risk of borrower default will be borne by the fund’s agent; the fund will bear the risk of loss with respect to the investment of the cash collateral. At the close of the reporting period, the value of securities loaned amounted to $48,996,010. Certain of these securities were sold prior to the close of the reporting period.
The fund received cash collateral of $50,188,382, which is invested in Putnam Cash Collateral Pool, LLC, a limited liability company managed by an affiliate of Putnam Management. Investments in Putnam Cash Collateral Pool, LLC are valued at its closing net asset value each business day. There are no management fees charged to Putnam Cash Collateral Pool, LLC. The rate quoted in the security description is the annualized 7-day yield at the close of the reporting period.
(F) Is valued at fair value following procedures approved by the Trustees. Securities may be classified as Level 2 or Level 3 for ASC 820 based on the securities' valuation inputs. At the close of the reporting period, fair value pricing was also used for certain foreign securities in the portfolio.
(i) Security was pledged, or purchased with cash that was pledged, to the fund for collateral on certain derivative contracts.
(P) Security was pledged, or purchased with cash that was pledged, to the fund for collateral on certain derivatives contracts. The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period.
(R) Real Estate Investment Trust.
(S) Security on loan, in part or in entirety, at the close of the reporting period.
(W) Warrants issued to the U.S. Treasury under the Troubled Asset Relief Program (TARP).
At the close of the reporting period, the fund maintained liquid assets totaling $37,926,037 to cover certain derivatives contracts.
Debt obligations are considered secured unless otherwise indicated.
The dates shown on debt obligations are the original maturity dates.
Security valuation: Investments for which market quotations are readily available are valued at the last reported sales price on their principal exchange, or official closing price for certain markets, and are classified as Level 1 securities under ASC 820. If no sales are reported, as in the case of some securities that are traded OTC, a security is valued at its last reported bid price and is generally categorized as a Level 2 security.
Investments in open-end investment companies (excluding exchange traded funds), if any, which can be classified as Level 1 or Level 2 securities, are based on their net asset value. The net asset value of such investment companies equals the total value of their assets less their liabilities and divided by the number of their outstanding shares.
Market quotations are not considered to be readily available for certain debt obligations and other investments; such investments are valued on the basis of valuations furnished by an independent pricing service approved by the Trustees or dealers selected by Putnam Management. Such services or dealers determine valuations for normal institutional-size trading units of such securities using methods based on market transactions for comparable securities and various relationships, generally recognized by institutional traders, between securities (which consider such factors as security prices, yields, maturities and ratings). These securities will generally be categorized as Level 2.
Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore the closing prices for securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the close of the New York Stock Exchange. Accordingly, on certain days, the fund will fair value foreign equity securities taking into account multiple factors including movements in the U.S. securities markets, currency valuations and comparisons to the valuation of American Depository Receipts, exchange-traded funds and futures contracts. These securities, which would generally be classified as Level 1 securities, will be transferred to Level 2 of the fair value hierarchy when they are valued at fair value. The number of days on which fair value prices will be used will depend on market activity and it is possible that fair value prices will be used by the fund to a significant extent. At the close of the reporting period, fair value pricing was used for certain foreign securities in the portfolio. Securities quoted in foreign currencies, if any, are translated into U.S. dollars at the current exchange rate.
To the extent a pricing service or dealer is unable to value a security or provides a valuation that Putnam Management does not believe accurately reflects the security's fair value, the security will be valued at fair value by Putnam Management. Certain investments, including certain restricted and illiquid securities and derivatives, are also valued at fair value following procedures approved by the Trustees. These valuations consider such factors as significant market or specific security events such as interest rate or credit quality changes, various relationships with other securities, discount rates, U.S. Treasury, U.S. swap and credit yields, index levels, convexity exposures and recovery rates. These securities are classified as Level 2 or as Level 3 depending on the priority of the significant inputs.
Such valuations and procedures are reviewed periodically by the Trustees. The fair value of securities is generally determined as the amount that the fund could reasonably expect to realize from an orderly disposition of such securities over a reasonable period of time. By its nature, a fair value price is a good faith estimate of the value of a security in a current sale and does not reflect an actual market price, which may be different by a material amount.
Options contracts: The fund used options contracts to hedge against changes in values of securities it owns, owned or expects to own.
The potential risk to the fund is that the change in value of options contracts may not correspond to the change in value of the hedged instruments. In addition, losses may arise from changes in the value of the underlying instruments, if there is an illiquid secondary market for the contracts, if interest or exchange rates move unexpectedly or if the counterparty to the contract is unable to perform. Realized gains and losses on purchased options are included in realized gains and losses on investment securities. If a written call option is exercised, the premium originally received is recorded as an addition to sales proceeds. If a written put option is exercised, the premium originally received is recorded as a reduction to the cost of investments.
Exchange traded options are valued at the last sale price or, if no sales are reported, the last bid price for purchased options and the last ask price for written options. OTC traded options are valued using prices supplied by dealers. Forward premium swap options contracts include premiums that do not settle until the expiration date of the contract. The delayed settlement of the premiums are factored into the daily valuation of the option contracts.
For the fund's average contract amount on options contracts, see the appropriate table at the end of these footnotes.
Forward currency contracts: The fund buys and sells forward currency contracts, which are agreements between two parties to buy and sell currencies at a set price on a future date. These contracts were used to hedge foreign exchange risk.
The U.S. dollar value of forward currency contracts is determined using current forward currency exchange rates supplied by a quotation service. The market value of the contract will fluctuate with changes in currency exchange rates. The contract is marked to market daily and the change in market value is recorded as an unrealized gain or loss. The fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed when the contract matures or by delivery of the currency. The fund could be exposed to risk if the value of the currency changes unfavorably, if the counterparties to the contracts are unable to meet the terms of their contracts or if the fund is unable to enter into a closing position.
For the fund's average contract amount on forward currency contracts, see the appropriate table at the end of these footnotes.
Total return swap contracts: The fund entered into OTC total return swap contracts, which are arrangements to exchange a market linked return for a periodic payment, both based on a notional principal amount, to gain exposure to specific sectors or industries.
To the extent that the total return of the security, index or other financial measure underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the fund will receive a payment from or make a payment to the counterparty. OTC total return swap contracts are marked to market daily based upon quotations from an independent pricing service or market makers and the change, if any, is recorded as an unrealized gain or loss. Payments received or made are recorded as realized gains or losses. Certain OTC total return swap contracts may include extended effective dates. Payments related to these swap contracts are accrued based on the terms of the contract. The fund could be exposed to credit or market risk due to unfavorable changes in the fluctuation of interest rates or in the price of the underlying security or index, the possibility that there is no liquid market for these agreements or that the counterparty may default on its obligation to perform. The fund’s maximum risk of loss from counterparty risk is the fair value of the contract. This risk may be mitigated by having a master netting arrangement between the fund and the counterparty.
For the fund's average notional amount on OTC total return swap contracts, see the appropriate table at the end of these footnotes.
Master agreements: The fund is a party to ISDA (International Swaps and Derivatives Association, Inc.) Master Agreements (Master Agreements) with certain counterparties that govern OTC derivative and foreign exchange contracts entered into from time to time. The Master Agreements may contain provisions regarding, among other things, the parties’ general obligations, representations, agreements, collateral requirements, events of default and early termination. With respect to certain counterparties, in accordance with the terms of the Master Agreements, collateral posted to the fund is held in a segregated account by the fund’s custodian and with respect to those amounts which can be sold or repledged, are presented in the fund’s portfolio. Collateral posted to the fund which cannot be sold or repledged totaled $1,079,550 at the close of the reporting period.
Collateral pledged by the fund is segregated by the fund’s custodian and identified in the fund’s portfolio. Collateral can be in the form of cash or debt securities issued by the U.S. Government or related agencies or other securities as agreed to by the fund and the applicable counterparty. Collateral requirements are determined based on the fund’s net position with each counterparty.
Termination events applicable to the fund may occur upon a decline in the fund’s net assets below a specified threshold over a certain period of time. Termination events applicable to counterparties may occur upon a decline in the counterparty’s long-term and short-term credit ratings below a specified level. In each case, upon occurrence, the other party may elect to terminate early and cause settlement of all derivative and foreign exchange contracts outstanding, including the payment of any losses and costs resulting from such early termination, as reasonably determined by the terminating party. Any decision by one or more of the fund’s counterparties to elect early termination could impact the fund's future derivative activity.
At the close of the reporting period, the fund had a net liability position of $155,573 on open derivative contracts subject to the Master Agreements. Collateral posted by the fund for these agreements totaled $139,958.












ASC 820 establishes a three-level hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of the fund’s investments. The three levels are defined as follows:
Level 1: Valuations based on quoted prices for identical securities in active markets.
Level 2: Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.
Level 3: Valuations based on inputs that are unobservable and significant to the fair value measurement.
The following is a summary of the inputs used to value the fund’s net assets as of the close of the reporting period:

 Valuation inputs
Investments in securities: Level 1 Level 2 Level 3
Common stocks:
    Consumer discretionary $103,213,621 $10,779,602 $—
    Consumer staples 22,875,345 4,550,911 —
    Energy 70,158,336 — —
    Financials 67,437,666 — —
    Health care 78,276,589 — —
    Industrials 50,607,847 1,815,796 —
    Information technology 244,944,087 14,162,256 615,966
    Materials 55,743,114 — —
Total common stocks 693,256,605 31,308,565 615,966
Convertible preferred stocks — 2,678,260 —
Investment companies 10,042,241 4,773,600 —
Purchased equity options outstanding 946,025 7,200,652 —
U.S. Treasury Obligations — 1,323,105 —
Warrants 19,574,367 1,569,486 —
Short-term investments 45,183,500 51,977,446 —
Totals by level $769,002,738 $100,831,114 $615,966



Valuation inputs
Other financial instruments: Level 1 Level 2 Level 3
Forward currency contracts $— $320,605 $—
Written equity options outstanding — (1,155,556) —
Total return swap contracts — 59,538 —
Totals by level $— $(775,413) $—


Market Values of Derivative Instruments as of the close of the reporting period
Asset derivatives Liability derivatives
Derivatives not accounted for as hedging instruments under ASC 815 Market value Market value
Foreign exchange contracts $476,178 $155,573
Equity contracts 29,357,620 1,163,108
Total $29,833,798 $1,318,681


The average volume of activity for the reporting period for any derivative type that was held at the close of the period is listed below and was as follows:
Purchased equity option contracts (number of contracts) 6,200,000
Written equity option contracts (number of contracts) 5,000,000
Forward currency contracts (contract amount) $38,100,000
OTC total return swap contracts (notional) $12,000,000
Warrants (number of warrants) 11,800,000

For additional information regarding the fund please see the fund's most recent annual or semiannual shareholder report filed on the Securities and Exchange Commission's Web site, www.sec.gov, or visit Putnam's Individual Investor Web site at www.putnaminvestments.com



Item 2. Controls and Procedures:
(a) The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the effectiveness of the design and operation of the registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the design and operation of such procedures are generally effective to provide reasonable assurance that information required to be disclosed by the registrant in this report is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms.

(b) Changes in internal control over financial reporting: Not applicable
Item 3. Exhibits:
Separate certifications for the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are filed herewith.

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

Putnam Variable Trust
By (Signature and Title):
/s/ Janet C. Smith
Janet C. Smith
Principal Accounting Officer
Date: May 24, 2013

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

By (Signature and Title):
/s/ Jonathan S. Horwitz
Jonathan S. Horwitz
Principal Executive Officer
Date: May 24, 2013

By (Signature and Title):
/s/ Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer
Date: May 24, 2013