PUTNAM VARIABLE TRUST (the "Trust")
Prospectus Supplement dated November 10, 1997
to Prospectuses dated April 30, 1997
1. The following sentence is added to the first paragraph on
the cover page. Shares of each portfolio are currently
divided into two classes: class IA shares, offered hereby
and class IB shares offered pursuant to another prospectus.
2. The following replaces the first sentence in the fourth
paragraph of the section entitled "Investment Objectives and
policies of the funds -- Putnam VT Vista Fund":
Putnam Management expects that, under normal market
conditions, the fund will generally invest primarily
in medium sized companies. While the definition of
"medium-sized" companies will change over time in response
to market conditions, Putnam Management believes that
currently such companies include those contained in the
Russell Midcap Growth Index as well as other companies
with equity market capitalizations ranging from
approximately $450 million to $10 billion.
3. The following paragraphs replace the third paragraph of the
section entitled "Organization and history:"
Any such series of shares may be further divided without
shareholder approval into two or more classes of shares
having such preferences and special or relative rights and
privileges as the Trustees may determine. Shares of each
series are currently divided into two classes: class IA
shares and class IB shares, which are subject to fees
imposed pursuant to a distribution plan. Only class IA
shares are offered by this prospectus. The funds may also
offer other classes of shares with different sales charges
and expenses. Because of these different sales charges and
expenses, the investment performance of the classes will
vary.
The two classes of shares are offered under a multiple class
distribution system approved by the Trust's Trustees, and
are designed to allow promotion of insurance products
investing in the Trust through alternative distribution
channels. The insurance company issuing the variable
contract you purchase selects the class of shares in which
the separate account funding the contract invests.
Each share has one vote, with fractional shares voting
proportionately. Shares vote by individual series on all
matters as a single class without regard to series or
classes of shares except (i) when required by the 1940 Act,
or when the Trustees have determined that the matter affects
one or more series or classes of shares materially
differently, shares of all series or classes shall be voted
by individual series or class, and (ii) when the Trustees
have determined that the matter affects only the interests
of one or more series or classes, only the shareholders of
such series or class shall be entitled to vote. Shares are
freely transferable, are entitled to dividends as declared
by the Trustees, and, if the portfolio were liquidated,
would receive the net assets of the portfolio. The Trust
may suspend the sale of shares of any portfolio at any time
and may refuse any order to purchase shares. Although the
Trust is not required to hold annual meetings of its
shareholders, shareholders holding at least 10% of the
outstanding shares entitled to vote have the right to call a
meeting to elect or remove Trustees, or to take other
actions as provided in the Agreement and Declaration of
Trust.
4. In the section of the prospectus of the Trust entitled "How
the Trust is managed," the chart indicating the officers of
Putnam Investment Management, Inc. ("Putnam Management")
that have primary responsibility for the day-to-day
management of Putnam VT High Yield Fund's portfolio is
replaced with the following:
Business experience
Year (at least 5 years)
---- -----------------------------
Putnam VT High Yield
Fund
Rosemary H. Thomsen 1997 Employed as an investment
Vice President professional by Putnam
Management since 1986.
Senior Vice President of
Putnam Fiduciary Trust
Company.
38364 11/97
HV-2170
216237 YF
46899
40018
S-6173 A (11/97)
