0000928816-14-001844.txt : 20141126 0000928816-14-001844.hdr.sgml : 20141126 20141126162352 ACCESSION NUMBER: 0000928816-14-001844 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20140930 FILED AS OF DATE: 20141126 DATE AS OF CHANGE: 20141126 EFFECTIVENESS DATE: 20141126 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PUTNAM VARIABLE TRUST CENTRAL INDEX KEY: 0000822671 IRS NUMBER: 046649095 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-05346 FILM NUMBER: 141254040 BUSINESS ADDRESS: STREET 1: ONE POST OFFICE SQ STREET 2: MAILSTOP A 14 CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 8002551581 FORMER COMPANY: FORMER CONFORMED NAME: PUTNAM CAPITAL MANAGER TRUST /MA/ DATE OF NAME CHANGE: 19920703 0000822671 S000003884 Putnam VT Multi-Cap Growth Fund C000010863 Class IA Shares C000010864 Class IB Shares N-Q 1 a_vtmulticapgrowth.htm PUTNAM VARIABLE TRUST a_vtmulticapgrowth.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:         Bryan Chegwidden, Esq.
Ropes & Gray LLP
1211 Avenue of the Americas
New York, New York 10036
Registrant’s telephone number, including area code: (617) 292-1000
Date of fiscal year end: December 31, 2014
Date of reporting period: September 30, 2014



Item 1. Schedule of Investments:













Putnam VT Multi-Cap Growth Fund

The fund's portfolio
9/30/14 (Unaudited)
COMMON STOCKS (98.5%)(a)
Shares Value
Aerospace and defense (5.0%)
Astronics Corp.(NON)(S) 43,416 $2,070,075
General Dynamics Corp. 59,100 7,511,019
Honeywell International, Inc. 153,100 14,256,672
Precision Castparts Corp. 17,900 4,240,152
Rockwell Collins, Inc. 47,200 3,705,200
United Technologies Corp. 64,300 6,790,080
38,573,198
Airlines (1.2%)
Delta Air Lines, Inc. 104,700 3,784,905
Spirit Airlines, Inc.(NON) 74,000 5,116,360
8,901,265
Automobiles (0.4%)
Tesla Motors, Inc.(NON)(S) 11,500 2,790,820
2,790,820
Banks (1.2%)
Bank of America Corp. 188,500 3,213,925
Bank of Ireland (Ireland)(NON) 7,488,957 2,933,697
PacWest Bancorp 80,900 3,335,507
9,483,129
Beverages (1.2%)
Coca-Cola Enterprises, Inc. 5,654 250,811
Monster Beverage Corp.(NON) 26,800 2,456,756
PepsiCo, Inc. 69,600 6,479,064
9,186,631
Biotechnology (7.3%)
Aegerion Pharmaceuticals, Inc.(NON)(S) 23,200 774,416
Alkermes PLC(NON) 61,000 2,615,070
AMAG Pharmaceuticals, Inc.(NON)(S) 66,900 2,134,779
Biogen Idec, Inc.(NON) 22,900 7,575,549
BioMarin Pharmaceutical, Inc.(NON) 37,500 2,706,000
Celgene Corp.(NON) 88,322 8,371,159
Cubist Pharmaceuticals, Inc.(NON)(S) 102,204 6,780,213
Gilead Sciences, Inc.(NON) 174,807 18,608,205
Inovio Pharmaceuticals, Inc.(NON)(S) 79,200 780,120
Neuralstem, Inc.(NON)(S) 461,188 1,512,697
Vertex Pharmaceuticals, Inc.(NON) 39,092 4,390,423
56,248,631
Building products (0.5%)
Assa Abloy AB Class B (Sweden) 52,597 2,697,226
NCI Building Systems, Inc.(NON) 58,900 1,142,660
3,839,886
Capital markets (2.1%)
Carlyle Group LP (The) 81,365 2,478,378
Charles Schwab Corp. (The) 243,600 7,159,404
FXCM, Inc. Class A(S) 24,800 393,080
Greenhill & Co., Inc. 43,900 2,040,911
KKR & Co. LP 108,300 2,415,090
WisdomTree Investments, Inc.(NON)(S) 123,900 1,409,982
15,896,845
Chemicals (3.7%)
Air Products & Chemicals, Inc. 20,600 2,681,708
Axiall Corp. 97,700 3,498,637
Chemtura Corp.(NON) 169,600 3,956,768
Dow Chemical Co. (The) 74,100 3,885,804
Huntsman Corp. 145,000 3,768,550
Monsanto Co. 47,500 5,344,225
Symrise AG (Germany) 55,117 2,929,887
W.R. Grace & Co.(NON) 29,300 2,664,542
28,730,121
Commercial services and supplies (1.0%)
KAR Auction Services, Inc. 99,849 2,858,677
MiX Telematics, Ltd. ADR (South Africa)(NON) 53,821 502,688
Tyco International, Ltd. 91,100 4,060,327
7,421,692
Communications equipment (0.3%)
Qualcomm, Inc. 30,617 2,289,233
2,289,233
Consumer finance (0.5%)
American Express Co. 40,600 3,554,124
3,554,124
Containers and packaging (0.7%)
Packaging Corp. of America 41,200 2,629,384
Sealed Air Corp. 79,571 2,775,436
5,404,820
Diversified consumer services (0.2%)
Bright Horizons Family Solutions, Inc.(NON) 34,564 1,453,762
1,453,762
Diversified financial services (0.8%)
CME Group, Inc. 75,200 6,012,616
6,012,616
Diversified telecommunication services (0.1%)
Iridium Communications, Inc.(NON)(S) 131,472 1,163,527
1,163,527
Electrical equipment (0.8%)
AMETEK, Inc. 72,650 3,647,757
Eaton Corp PLC 40,400 2,560,148
6,207,905
Electronic equipment, instruments, and components (1.6%)
Anixter International, Inc. 51,756 4,390,979
Hollysys Automation Technologies, Ltd. (China)(NON)(S) 130,400 2,932,696
SYNNEX Corp.(NON)(S) 72,200 4,666,286
11,989,961
Energy equipment and services (2.5%)
Aker Solutions ASA (Norway) 38,115 153,183
Aker Solutions ASA 144A (Norway)(NON) 126,379 1,258,922
Dril-Quip, Inc.(NON) 29,900 2,673,060
Halliburton Co. 141,700 9,141,067
Oil States International, Inc.(NON) 24,734 1,531,035
Schlumberger, Ltd. 42,700 4,342,163
19,099,430
Food and staples retail (1.8%)
Costco Wholesale Corp. 30,700 3,847,324
CVS Health Corp. 125,100 9,956,709
13,804,033
Food products (0.8%)
Mead Johnson Nutrition Co. 48,578 4,674,175
Pinnacle Foods, Inc. 35,506 1,159,271
S&W Seed Co.(NON)(S) 68,652 291,084
6,124,530
Health-care equipment and supplies (2.9%)
AtriCure, Inc.(NON) 46,254 680,859
GenMark Diagnostics, Inc.(NON)(S) 178,920 1,604,912
Medtronic, Inc. 92,900 5,755,155
Spectranetics Corp. (The)(NON)(S) 126,700 3,366,419
Tornier NV (Netherlands)(NON) 138,387 3,307,449
TransEnterix, Inc.(NON) 184,304 803,565
Zimmer Holdings, Inc. 65,400 6,575,970
22,094,329
Health-care providers and services (0.3%)
Premier, Inc. Class A(NON) 64,900 2,132,614
2,132,614
Health-care technology (0.2%)
Castlight Health, Inc. Class B(NON)(S) 35,300 456,782
Medidata Solutions, Inc.(NON)(S) 31,700 1,403,993
1,860,775
Hotels, restaurants, and leisure (4.0%)
Bloomin' Brands, Inc.(NON) 132,472 2,429,536
Dunkin' Brands Group, Inc. 77,200 3,460,104
Hilton Worldwide Holdings, Inc.(NON) 395,599 9,743,603
Intrawest Resorts Holdings, Inc.(NON) 91,167 881,585
Melco Crown Entertainment, Ltd. ADR (Hong Kong)(S) 180,600 4,747,974
Wyndham Worldwide Corp. 114,233 9,282,574
30,545,376
Household durables (1.9%)
Panasonic Corp. (Japan) 335,900 3,998,925
PulteGroup, Inc. 321,900 5,684,754
Whirlpool Corp. 36,300 5,287,095
14,970,774
Household products (0.3%)
Colgate-Palmolive Co. 35,400 2,308,788
2,308,788
Independent power and renewable electricity producers (0.5%)
Calpine Corp.(NON) 177,758 3,857,349
3,857,349
Industrial conglomerates (0.7%)
Siemens AG (Germany) 47,943 5,714,156
5,714,156
Insurance (1.4%)
American International Group, Inc. 49,200 2,657,784
Hartford Financial Services Group, Inc. (The) 153,300 5,710,425
Prudential PLC (United Kingdom) 120,014 2,665,606
11,033,815
Internet and catalog retail (3.6%)
Amazon.com, Inc.(NON) 29,095 9,381,392
Bigfoot GmbH (acquired 8/2/13, cost $703,425) (Private) (Brazil)(F)(RES)(NON) 32 434,885
Groupon, Inc.(NON)(S) 203,000 1,356,040
HSN, Inc. 59,000 3,620,830
Priceline Group, Inc. (The)(NON) 9,585 11,104,989
Zalando SE (acquired 9/30/13, cost $1,255,524) (Private) (Germany)(F)(RES)(NON) 52,360 1,279,680
Zalando SE (Germany)(NON) 17,058 463,220
27,641,036
Internet software and services (9.9%)
Alibaba Group Holding, Ltd. ADR (China)(NON) 100,097 8,893,618
Baidu, Inc. ADR (China)(NON) 21,100 4,604,653
eBay, Inc.(NON) 46,800 2,650,284
Facebook, Inc. Class A(NON) 290,800 22,984,832
Google, Inc. Class A(NON) 28,482 16,759,094
Google, Inc. Class C(NON) 30,882 17,830,032
Twitter, Inc.(NON) 49,000 2,527,420
76,249,933
IT Services (1.8%)
Visa, Inc. Class A(S) 66,300 14,146,431
14,146,431
Life sciences tools and services (1.2%)
Agilent Technologies, Inc. 93,300 5,316,234
Thermo Fisher Scientific, Inc. 29,561 3,597,574
8,913,808
Machinery (1.4%)
Middleby Corp. (The)(NON) 36,100 3,181,493
Pall Corp. 53,700 4,494,690
Wabtec Corp. 37,300 3,022,792
10,698,975
Marine (0.5%)
Kirby Corp.(NON) 32,300 3,806,555
3,806,555
Media (3.5%)
CBS Corp. Class B (non-voting shares) 26,000 1,391,000
Comcast Corp. Class A 198,082 10,652,850
DISH Network Corp. Class A(NON) 35,000 2,260,300
Liberty Global PLC Ser. C (United Kingdom) 83,600 3,428,854
Liberty Global PLC Ser. A (United Kingdom)(NON)(S) 80,700 3,432,978
Live Nation Entertainment, Inc.(NON) 254,000 6,101,080
27,267,062
Metals and mining (0.5%)
Constellium NV Class A (Netherlands)(NON) 98,579 2,426,029
Reliance Steel & Aluminum Co. 24,800 1,696,320
4,122,349
Oil, gas, and consumable fuels (4.2%)
Cabot Oil & Gas Corp. 57,800 1,889,482
Cheniere Energy, Inc.(NON) 33,900 2,713,017
EOG Resources, Inc. 60,600 6,000,612
EP Energy Corp. Class A(NON)(S) 92,800 1,622,144
Gaztransport Et Technigaz SA (France) 66,277 3,920,593
Gulfport Energy Corp.(NON) 69,200 3,695,280
Kodiak Oil & Gas Corp.(NON) 203,248 2,758,075
QEP Resources, Inc. 101,800 3,133,404
Scorpio Tankers, Inc.(S) 152,582 1,267,956
Suncor Energy, Inc. (Canada) 143,148 5,180,400
32,180,963
Personal products (0.9%)
Coty, Inc. Class A 215,493 3,566,409
Estee Lauder Cos., Inc. (The) Class A 42,000 3,138,240
6,704,649
Pharmaceuticals (4.5%)
AbbVie, Inc. 76,500 4,418,640
Actavis PLC(NON) 42,600 10,278,528
Allergan, Inc. 31,490 5,611,203
AstraZeneca PLC ADR (United Kingdom) 41,700 2,979,048
Bristol-Myers Squibb Co. 79,900 4,089,282
Cardiome Pharma Corp. (Canada)(NON) 89,221 796,744
Jazz Pharmaceuticals PLC(NON) 41,148 6,606,723
34,780,168
Professional services (0.2%)
TrueBlue, Inc.(NON) 72,800 1,838,928
1,838,928
Real estate investment trusts (REITs) (0.5%)
Altisource Residential Corp.(R) 54,300 1,303,200
American Tower Corp.(R) 26,023 2,436,533
3,739,733
Real estate management and development (0.4%)
RE/MAX Holdings, Inc. Class A 98,350 2,923,946
2,923,946
Road and rail (2.0%)
Genesee & Wyoming, Inc. Class A(NON) 20,386 1,942,990
Old Dominion Freight Line, Inc.(NON) 13,400 946,576
Union Pacific Corp. 113,400 12,294,828
15,184,394
Semiconductors and semiconductor equipment (2.8%)
Freescale Semiconductor, Ltd.(NON)(S) 141,770 2,768,768
Lam Research Corp. 67,253 5,023,799
Maxim Integrated Products, Inc. 114,800 3,471,552
Micron Technology, Inc.(NON) 297,567 10,194,645
21,458,764
Software (5.2%)
Activision Blizzard, Inc. 163,700 3,403,323
Cadence Design Systems, Inc.(NON) 155,200 2,670,992
Manhattan Associates, Inc.(NON) 43,827 1,464,698
Microsoft Corp. 212,400 9,846,864
Oracle Corp. 176,950 6,773,646
Red Hat, Inc.(NON) 102,600 5,760,990
SS&C Technologies Holdings, Inc.(NON) 55,204 2,422,904
Symantec Corp. 80,800 1,899,608
TiVo, Inc.(NON) 436,647 5,586,898
39,829,923
Specialty retail (1.9%)
Five Below, Inc.(NON)(S) 55,518 2,199,068
Gap, Inc. (The) 62,900 2,622,301
Home Depot, Inc. (The) 64,500 5,917,230
TJX Cos., Inc. (The) 65,104 3,852,204
14,590,803
Technology hardware, storage, and peripherals (5.3%)
Apple, Inc. 325,772 32,821,529
EMC Corp. 101,700 2,975,742
SanDisk Corp. 35,473 3,474,580
Western Digital Corp. 15,900 1,547,388
40,819,239
Textiles, apparel, and luxury goods (1.7%)
Michael Kors Holdings, Ltd.(NON) 39,900 2,848,461
NIKE, Inc. Class B 76,000 6,779,200
Tumi Holdings, Inc.(NON)(S) 183,400 3,732,190
13,359,851
Tobacco (0.3%)
Philip Morris International, Inc. 28,140 2,346,876
2,346,876
Wireless telecommunication services (0.3%)
Vodafone Group PLC ADR (United Kingdom) 81,454 2,679,021
2,679,021
Total common stocks (cost $619,160,842) $757,977,542

U.S. TREASURY OBLIGATIONS (0.1%)(a)
Principal amount Value
U.S. Treasury Bonds 3 3/4s, November 15, 2043(i) $104,000 $116,383
U.S. Treasury Inflation Protected Securities 3 7/8s, April 15, 2029(i) 101,452 145,180
U.S. Treasury Notes
     3 5/8s, February 15, 2021(i) 103,000 112,828
     2 1/8s, August 15, 2021(i) 113,000 112,748
Total U.S. treasury Obligations (cost $487,139) $487,139

WARRANTS (—%)(a)(NON)
Expiration date Strike Price Warrants Value
Citigroup, Inc. 1/4/19 $106.10 359,195 $341,235
Neuralstem, Inc. Ser. J (acquired 1/3/14, cost $—)(F)(RES) 1/3/19 3.64 146,170 —
Total warrants (cost $362,787) $341,235

SHORT-TERM INVESTMENTS (7.2%)(a)
Principal amount/shares Value
Putnam Cash Collateral Pool, LLC 0.16%(d) Shares 44,443,303 $44,443,303
Putnam Short Term Investment Fund 0.06%(AFF) Shares 9,681,130 9,681,130
U.S. Treasury Bills with an effective yield of 0.10%, January 8, 2015(SEGSF) $720,000 719,965
U.S. Treasury Bills with an effective yield of 0.11%, November 13, 2014 6,000 5,999
U.S. Treasury Bills with an effective yield of 0.04%, October 23, 2014 360,000 359,992
Total short-term investments (cost $55,210,225) $55,210,389

TOTAL INVESTMENTS
Total investments (cost $675,220,993)(b) $814,016,305













FORWARD CURRENCY CONTRACTS at 9/30/14 (aggregate face value $15,714,609) (Unaudited)


Unrealized
Contract Delivery Aggregate appreciation/
Counterparty Currency type date Value face value (depreciation)
Barclays Bank PLC
Japanese Yen Sell 11/19/14 $3,840,077 $4,352,267 $512,190
JPMorgan Chase Bank N.A.
Euro Sell 12/17/14 1,951,208 2,011,575 60,367
UBS AG
Euro Sell 12/17/14 8,974,419 9,350,767 376,348
Total $948,905













OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 9/30/14 (Unaudited)
Upfront     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)
Deutsche Bank AG
units 58,164 $—      8/12/15 (3 month USD-LIBOR-BBA plus 0.36%) A basket (DBCTP15P) of common stocks $3,955
JPMorgan Chase Bank N.A.
baskets 18,930 —      7/16/15 (3 month USD-LIBOR-BBA plus 30 bp) A basket (JPCMPTMD) of common stocks (2,338)
Total$—     $1,617










Key to holding's abbreviations
ADR American Depository Receipts: represents ownership of foreign securities on deposit with a custodian bank
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, 2014 through September 30, 2014 (the reporting period). Within the following notes to the portfolio, references to “ASC 820” represent Accounting Standards Codification 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 $769,442,814.
(b) The aggregate identified cost on a tax basis is $675,738,659, resulting in gross unrealized appreciation and depreciation of $156,304,091 and $18,026,445, respectively, or net unrealized appreciation of $138,277,646.
(NON) Non-income-producing security.
(RES) Security is restricted with regard to public resale. The total fair value of this security and any other restricted securities (excluding 144A securities), if any, held at the close of the reporting period was $1,714,565, or 0.2% of net assets.
(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 Short Term Investment Fund, which is under common ownership and control, were as follows:
Name of affiliate Fair value at the beginning of the reporting period Purchase cost Sale proceeds Investment income Fair value at the end of the reporting period
Putnam Short Term Investment Fund * $12,615,305 $125,913,612 $128,847,787 $3,820 $9,681,130
* Management fees charged to 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 fair value of the securities loaned. The fair value of securities loaned is determined daily and any additional required collateral is allocated to the fund on the next business day. The 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.
The fund received cash collateral of $44,443,303 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. At the close of the reporting period, the value of securities loaned amounted to $42,874,870.
(F) Security 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.
(R) Real Estate Investment Trust.
(S) Security on loan, in part or in entirety, at the close of the reporting period.
Debt obligations are considered secured unless otherwise indicated.
144A after the name of an issuer represents securities exempt from registration under Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
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 valued based on their net asset value. The net asset value of such investment companies equals the total value of their assets less their liabilities and divided by the number of their outstanding shares.
Market quotations are not considered to be readily available for certain debt obligations 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. Short-term securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value and are classified as Level 2 securities.
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 in accordance with policies and procedures approved by the Trustees. Certain investments, including certain restricted and illiquid securities and derivatives, are also valued at fair value following procedures approved by the Trustees. These valuations consider such factors as significant market or specific security events such as interest rate or credit quality changes, various relationships with other securities, discount rates, U.S. Treasury, U.S. swap and credit yields, index levels, convexity exposures 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.
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 fair value of the contract will fluctuate with changes in currency exchange rates. The contract is marked to market daily and the change in fair value is recorded as an unrealized gain or loss. The fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed when the contract matures or by delivery of the currency. The fund could be exposed to risk if the value of the currency changes unfavorably, if the counterparties to the contracts are unable to meet the terms of their contracts or if the fund is unable to enter into a closing position.
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 markets or countries and to gain exposure to specific sectors or industries.
To the extent that the total return of the security, index or other financial measure underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the fund will receive a payment from or make a payment to the counterparty. OTC total return swap contracts are marked to market daily based upon quotations from an independent pricing service or market makers and the change, if any, is recorded as an unrealized gain or loss. Payments received or made are recorded as realized gains or losses. Certain OTC total return swap contracts may include extended effective dates. Payments related to these swap contracts are accrued based on the terms of the contract. The fund could be exposed to credit or market risk due to unfavorable changes in the fluctuation of interest rates or in the price of the underlying security or index, the possibility that there is no liquid market for these agreements or that the counterparty may default on its obligation to perform. The fund’s maximum risk of loss from counterparty risk is the fair value of the contract. This risk may be mitigated by having a master netting arrangement between the fund and the counterparty.
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, is presented in the fund’s portfolio. Collateral posted to the fund which cannot be sold or repledged totaled $347,544 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 did not have a net liability position on open derivative contracts subject to the Master Agreements.












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 $126,442,774 $4,462,145 $1,714,565
    Consumer staples 40,475,507 — —
    Energy 47,206,617 4,073,776 —
    Financials 47,044,905 5,599,303 —
    Health care 126,030,325 — —
    Industrials 93,775,572 8,411,382 —
    Information technology 206,783,484 — —
    Materials 35,327,403 2,929,887 —
    Telecommunication services 3,842,548 — —
    Utilities 3,857,349 — —
Total common stocks 730,786,484 25,476,493 1,714,565
U.S. treasury obligations — 487,139 —
Warrants 341,235 — —
Short-term investments 9,681,130 45,529,259 —
Totals by level $740,808,849 $71,492,891 $1,714,565



Valuation inputs
Other financial instruments: Level 1 Level 2 Level 3
Forward currency contracts $— $948,905 $—
Total return swap contracts — 1,617 —
Totals by level $— $950,522 $—


* Common stock classifications are presented at the sector level, which may differ from the fund's portfolio presentation.
At the start and close of the reporting period, Level 3 investments in securities represented less than 1% of the fund's net assets and were not considered a significant portion of the fund's portfolio.
During the reporting period, transfers within the fair value hierarchy, if any, (other than certain transfers involving non-U.S. equity securities as described in the Security valuation note above) did not represent, in the aggregate, more than 1% of the fund's net assets measured as of the end of the period.

Fair Value of Derivative Instruments as of the close of the reporting period
Asset derivatives Liability derivatives
Derivatives not accounted for as hedging instruments under ASC 815 Fair value Fair value
Foreign exchange contracts $948,905 $—
Equity contracts 345,190 2,338
Total $1,294,095 $2,338


The 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 based on an average of the holdings of that derivative at the end of each fiscal quarter in the reporting period:
Forward currency contracts (contract amount)$20,700,000
OTC total return swap contracts (notional)$9,400,000
Warrants (number of warrants)490,000
   
  The following table summarizes any derivatives, repurchase agreements and reverse repurchase agreements, at the end of the reporting period, that are subject to an enforceable master netting agreement or similar agreement. For securities lending transactions, if applicable, see note "(d)" above, and for borrowing transactions associated with securities sold short, if applicable, see the "Short sales of securities" note above.
                 
      Barclays Bank PLC Deutsche Bank AG JPMorgan Chase Bank N.A. UBS AG   Total
                 
  Assets:              
  OTC Total return swap contracts*#    $–  $ 3,955  $–  $–    $3,955
  Forward currency contracts#    512,190  –  60,367  376,348    948,905
                 
  Total Assets  $512,190  $3,955  $60,367  $376,348  $952,860
                 
  Liabilities:              
  OTC Total return swap contracts*#    –  –  2,338  –    2,338
  Forward currency contracts#    –  –  –  –    –
                 
  Total Liabilities  $–  $–  $2,338  $–  $2,338
                 
  Total Financial and Derivative Net Assets    $512,190  $3,955  $58,029  $376,348    $950,522
  Total collateral received (pledged)##†    $487,139  $(440,000)  $–  $347,544    
  Net amount    $25,051  $443,955  $58,029  $28,804    
                 
* Excludes premiums, if any.
                 
†  Additional collateral may be required from certain brokers based on individual agreements.
                 
# Covered by master netting agreement.
                 
## Any over-collateralization of total financial and derivative net assets is not shown. Collateral may include amounts related to unsettled agreements.

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: November 26, 2014

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: November 26, 2014

By (Signature and Title):
/s/ Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer
Date: November 26, 2014

EX-99.CERT 2 b_PVTcertifications.htm EX-99.CERT b_PVTcertifications.htm

Certifications

I, Jonathan S. Horwitz, the Principal Executive Officer of the funds listed on Attachment A, certify that:

1. I have reviewed each report on Form N-Q of the funds listed on Attachment A:

2. Based on my knowledge, each report does not contain any untrue statements of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by each report;

3. Based on my knowledge, the schedules of investments included in each report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrants and have:


a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which each report is being prepared;


b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;


c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and


d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed to each registrant’s auditors and the audit committee of each registrant’s board of directors (or persons performing the equivalent functions):


a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect each registrant’s ability to record, process, summarize, and report financial information; and


b) any fraud, whether or not material, that involves management or other employees who have a significant role in each registrant’s internal control over financial reporting.

/s/ Jonathan S. Horwitz
_____________________________

Date: November 25, 2014
Jonathan S. Horwitz
Principal Executive Officer













Certifications

I, Steven D. Krichmar, the Principal Financial Officer of the funds listed on Attachment A, certify that:

1. I have reviewed each report on Form N-Q of the funds listed on Attachment A:

2. Based on my knowledge, each report does not contain any untrue statements of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by each report;

3. Based on my knowledge, the schedules of investments included in each report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrants and have:


a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which each report is being prepared;


b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;


c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and


d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed to each registrant’s auditors and the audit committee of each registrant’s board of directors (or persons performing the equivalent functions):


a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect each registrant’s ability to record, process, summarize, and report financial information; and


b) any fraud, whether or not material, that involves management or other employees who have a significant role in each registrant’s internal control over financial reporting.

/s/ Steven D. Krichmar
_______________________________

Date: November 25, 2014
Steven D. Krichmar
Principal Financial Officer














Attachment A

NQ

Period (s) ended September 30, 2014
               Putnam Europe Equity Fund
               Putnam International Equity Fund
               Putnam Multi-Cap Growth Fund
               Putnam Small Cap Growth Fund
               Putnam International Value Fund

               Putnam VT Absolute 500 Fund
               Putnam VT American Government Income Fund
               Putnam VT Capital Opportunities Fund
               Putnam VT Diversified Income Fund
               Putnam VT Equity Income Fund
               Putnam VT George Putnam Balanced Fund
               Putnam VT Global Asset Allocation Fund
               Putnam VT Global Equity Fund
               Putnam VT Global Health Care Fund
               Putnam VT Global Utilities Fund
               Putnam VT Growth and Income Fund
               Putnam VT Growth Opportunities Fund
               Putnam VT High Yield Fund
               Putnam VT Income Fund
               Putnam VT International Equity Fund
               Putnam VT International Value Fund
               Putnam VT International Growth Fund
               Putnam VT Investors Fund
               Putnam VT Multi-Cap Value Fund
               Putnam VT Money Market Fund
               Putnam VT Multi-Cap Growth Fund
               Putnam VT Research Fund
               Putnam VT Small Cap Value Fund
               Putnam VT Voyager Fund