ADR after the name of a foreign holding represents ownership of foreignsecurities on deposit with a custodian bank.The dates shown on debt obligations are the original maturity dates.DIVERSIFICATION BY COUNTRYDistribution of investments by country of risk at December 31, 2009 (as apercentage of Portfolio Value):United States 52.7%United Kingdom 7.6Japan 6.6Taiwan 5.1Switzerland 4.4Canada 2.6Norway 2.6Singapore 2.4Greece 2.2Austria 2.0France 1.8Italy 1.7%Germany 1.4Australia 1.1Netherlands 1.0China 0.9Hong Kong 0.8Denmark 0.8South Africa 0.7Sweden 0.7Other 0.9Total 100.0%FORWARD CURRENCY CONTRACTS TO BUYUnrealizedat 12/31/09 (aggregate Aggregrate Delivery appreciation/face value $73,605,241) Value face value date (depreciation)Australian Dollar $16,753,004 $17,197,138 1/20/10 $(444,134)British Pound 9,960,080 10,243,966 1/20/10 (283,886)Canadian Dollar 7,713,951 7,691,488 1/20/10 22,463Euro 16,250,181 16,943,941 1/20/10 (693,760)Hong Kong Dollar 1,358,169 1,358,867 1/20/10 (698)Japanese Yen 7,311,913 7,815,838 1/20/10 (503,925)Norwegian Krone 4,378,299 4,528,825 1/20/10 (150,526)Swedish Krona 2,150,925 2,213,784 1/20/10 (62,859)Swiss Franc 5,428,458 5,611,394 1/20/10 (182,936)Total $(2,300,261)FORWARD CURRENCY CONTRACTS TO SELLat 12/31/09 (aggregate Aggregrate Delivery Unrealizedface value $49,092,251) Value face value date appreciationAustralian Dollar $9,639,871 $9,902,512 1/20/10 $262,641British Pound 4,167,802 4,286,347 1/20/10 118,545Danish Krone 858,959 903,970 1/20/10 45,011Euro 7,360,064 7,763,473 1/20/10 403,409Japanese Yen 2,654,292 2,837,299 1/20/10 183,007Norwegian Krone 9,658,600 9,988,862 1/20/10 330,262Singapore Dollar 6,201,926 6,301,117 1/20/10 99,191Swedish Krona 942,321 980,560 1/20/10 38,239Swiss Franc 5,930,299 6,128,111 1/20/10 197,812Total $1,678,117ASC 820 establishes a three-level hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to thevaluation 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 December 31, 2009:Valuation inputs<strong>Investments</strong> in securities: Level 1 Level 2 Level 3Common stocks:Basic materials $16,221,621 $11,691,421 $—Capital goods 7,846,616 6,815,543 —Communication services 10,367,119 3,953,270 —Conglomerates — 5,708,256 —Consumer cyclicals 15,481,240 7,174,050 —Consumer staples 10,639,639 — —Energy 6,988,588 21,049,262 —Financial 20,694,463 20,286,983 725,500Health care 20,511,630 7,574,280 —Technology 25,656,655 13,949,211 —Transportation — 6,768,725 —Utilities and power 578,141 3,614,512 —Total common stocks 134,985,712 108,585,513 725,500Investment companies 505,025 — —U.S. treasury obligations — 302,223 —Warrants — 52,930 —Short-term investments 6,407,335 17,265,593 —Totals by level $141,898,072 $126,206,259 $725,500Level 1 Level 2 Level 3Other financial instruments: $— $(622,144) $(129,584)Other financial instruments include forward currency contracts and receivable purchase agreements.118 <strong>Putnam</strong> VT Global Equity Fund
The following is a reconciliation of Level 3 assets as of December 31, 2009:<strong>Investments</strong> in securities:Common stocks:Balance as ofDecember 31,2008Accrueddiscounts/premiumsRealizedgain/(loss)Change in netunrealizedappreciation/(depreciation)Net purchases/salesNet transfers inand/or out ofLevel 3Balance as ofDecember 31,2009Financial $565,308 $— $(479,126) $697,976 $(58,658) $— $725,500Total common stocks $565,308 — (479,126) 697,976 (58,658) — $725,500Totals: $565,308 $— $(479,126) $697,976 $(58,658) $— $725,500Balance as ofDecember 31,2008 ††Accrueddiscounts/premiumsRealizedgain/(loss)Change in netunrealizedappreciation/(depreciation) †Net purchases/salesNet transfers inand/or out ofLevel 3Balance as ofDecember 31,2009 ††Other financial instruments: $(145,285) $— $— $15,701 $— $— $(129,584)† Includes $15,701 related to Level 3 securities still held at period end. Total change in unrealized appreciation/(depreciation) for securities (includingLevel 1 and Level 2) can be found in the Statement of operations.†† Includes amount payable under receivable purchase agreement.The accompanying notes are an integral part of these financial statements.<strong>Putnam</strong> VT Global Equity Fund 119
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PutnamVariable Trust12 | 31 | 09Ann
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Message from the TrusteesDear Fello
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The fund’s portfolio 12/31/09MORT
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MORTGAGE-BACKED SECURITIES (33.2%)*
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Robert E. Patterson (Born 1945)Trus
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PRESORTEDSTANDARDU.S. POSTAGEPAIDLA