Putnam PVT annual report - Putnam Investments

Fund nameAmount seller soldto the fundAmount ofreceivable offsetagainst the fund’snet payablePutnam VT American GovernmentIncome Fund $251,354 $1,405,002Putnam VT Diversified Income Fund 648,551 4,066,657Putnam VT The George Putnam Fundof Boston 538,710 10,185,212Putnam VT Global Asset Allocation Fund 443,188 6,008,394Putnam VT Global Equity Fund 563,743 815,485Putnam VT Income Fund 843,827 50,118,162The funds reimburse Putnam Management an allocated amount for thecompensation and related expenses of certain officers of the Trust or fundsand their staff who provide administrative services to the funds. The aggregateamount of all such reimbursements is determined annually by the Trustees.Custodial functions for the fund’s assets are provided by State Street Bank andTrust Company (“State Street”). Custody fees are based on the fund’s assetlevel, the number of its security holdings and transaction volumes.Putnam Investor Services, Inc., an affiliate of Putnam Management, providedinvestor servicing agent functions to each fund. Putnam Investor Services, Inc.was paid a monthly fee for investor servicing at an annual rate of 0.03% of eachfund’s average net assets. The amounts incurred for investor servicing agentfunctions provided by affiliates of Putnam Management during the year endedDecember 31, 2009 are included in Investor servicing fees in the Statementof operations.Under the custodian contract between each fund and State Street, the custodianbank has a lien on the securities of Putnam VT Capital Opportunities Fund,Putnam VT Global Asset Allocation Fund, Putnam VT Global Equity Fund,Putnam VT Growth and Income Fund, Putnam VT Growth Opportunities Fund,Putnam VT International Equity Fund, Putnam VT International Growth Fund,Putnam VT International Value Fund, Putnam VT Investors Fund, Putnam VTNew Opportunities Fund, Putnam VT Small Cap Value Fund and Putnam VTVista Fund to the extent permitted by each fund’s investment restrictions tocover any advances made by the custodian bank for the settlement of securitiespurchased by that fund. At December 31, 2009, the payable to the custodianbank on each of the funds listed above represents the amount due forcash advanced for the settlement of securities purchased.Each fund has entered into an expense offset arrangement with PutnamInvestor Services, Inc. and State Street whereby Putnam Investor Services, Inc.’sand State Street’s fees are reduced by credits allowed on cash balances. Certainfunds also reduced expenses through brokerage/service arrangements.For the year ended December 31, 2009, the funds’ expenses were reduced bythe following amounts under the expense offset arrangements and under thebrokerage/service arrangements:Fund nameExpense offsetarrangementsBrokerage/servicearrangementsPutnam VT American GovernmentIncome Fund $683 $—Putnam VT Capital Opportunities Fund 6 —Putnam VT Diversified Income Fund 2,089 —Putnam VT Equity Income Fund 45 17,641Putnam VT The George Putnam Fund of Boston 992 10,221Putnam VT Global Asset Allocation Fund 999 22,282Putnam VT Global Equity Fund 18 12,885Putnam VT Global Health Care Fund 32 7,628Putnam VT Global Utilities Fund 2 19,139Putnam VT Growth and Income Fund 404 134,535Putnam VT Growth Opportunities Fund 9 3,085Putnam VT High Yield Fund 3,783 —Putnam VT Income Fund 3,727 —Putnam VT International Equity Fund 336 177,221Putnam VT International Growth Fund 60 16,952Fund nameExpense offsetarrangementsBrokerage/servicearrangementsPutnam VT International Value Fund $93 $ 55,653Putnam VT Investors Fund 14 43,943Putnam VT Mid Cap Value Fund 8 3,914Putnam VT Money Market Fund 37 —Putnam VT New Opportunities Fund 34 73,673Putnam VT Research Fund 16 11,880Putnam VT Small Cap Value Fund 46 32,078Putnam VT Vista Fund 52 23,788Putnam VT Voyager Fund 198 211,783Each independent Trustee of the funds receives an annual Trustee fee and anadditional fee for each Trustees meeting attended. Trustees receive additionalfees for attendance at certain committee meetings and industry seminarsand for certain compliance-related matters. Trustees also are reimbursed forexpenses they incur relating to their services as Trustees. For the year endedDecember 31, 2009, the funds’ Trustee fees, serving as a quarterly retainer,were as follows:Fund nameAmountPutnam VT American Government Income Fund $116Putnam VT Capital Opportunities Fund 19Putnam VT Diversified Income Fund 346Putnam VT Equity Income Fund 301Putnam VT The George Putnam Fund of Boston 165Putnam VT Global Asset Allocation Fund 170Putnam VT Global Equity Fund 189Putnam VT Global Health Care Fund 100Putnam VT Global Utilities Fund 137Putnam VT Growth and Income Fund 1,091Putnam VT Growth Opportunities Fund 20Putnam VT High Yield Fund 310Putnam VT Income Fund 339Putnam VT International Equity Fund 459Putnam VT International Growth Fund 62Putnam VT International Value Fund 140Putnam VT Investors Fund 207Putnam VT Mid Cap Value Fund 29Putnam VT Money Market Fund 271Putnam VT New Opportunities Fund 412Putnam VT Research Fund 52Putnam VT Small Cap Value Fund 197Putnam VT Vista Fund 145Putnam VT Voyager Fund 754Each fund has adopted a Trustee Fee Deferral Plan (the “Deferral Plan”) whichallows the Trustees to defer the receipt of all or a portion of Trustees feespayable on or after July 1, 1995. The deferred fees remain invested in certainPutnam funds until distribution in accordance with the Deferral Plan.Each fund has adopted an unfunded noncontributory defined benefit pensionplan (the “Pension Plan”) covering all Trustees of each fund who have servedas a Trustee for at least five years and were first elected prior to 2004. Benefitsunder the Pension Plan are equal to 50% of the Trustee’s average annual attendanceand retainer fees for the three years ended December 31, 2005. Theretirement benefit is payable during a Trustee’s lifetime, beginning the yearfollowing retirement, for the number of years of service through December 31,2006. Pension expense for each fund is included in Trustee compensation andexpenses in the Statement of operations. Accrued pension liability is includedin Payable for Trustee compensation and expenses in the Statement of assets310 Putnam Variable Trust