53284
6/99 Prospectus Supplement
dated June 7, 1999 to:
PUTNAM VARIABLE TRUST (THE "TRUST")
Prospectuses dated April 30, 1999
On June 4, 1999, the Trustees approved a proposal to amend
the fee rate payable to Putnam Investment Management, Inc.
("Putnam Management") for the Putnam VT Global Growth Fund's
Management Contract. At current asset levels, the proposal
will result in a fee increase for Putnam Management. The
proposed increase is subject to shareholder approval and
will be submitted to shareholders at a meeting scheduled to
be held on November 4, 1999. If approved at that meeting,
management fees for Putnam VT Global Growth Fund would
thereafter be paid at the annual rate of 0.80% of the first
$500 million of average net assets, 0.70% of the next $500
million, 0.65% of the next $500 million, 0.60% of the next
$5 billion, 0.575% of the next $5 billion, 0.555% of the
next $5 billion, 0.54% of the next $5 billion, and 0.53% of
any amount thereafter.
As a result of the proposed change, the first paragraph and
chart under the section "Who manages the funds?" are
replaced with the following:
The Trust's Trustees oversee the general conduct of each
fund's business. The Trustees have retained Putnam
Management to be the funds' investment manager, responsible
for making investment decisions for the funds and managing
the funds' other affairs and business. Each fund pays
Putnam Management a quarterly management fee for these
services based on the fund's average net assets. Putnam
Management's address is One Post Office Square, Boston, MA
02109. The funds paid Putnam Management management fees in
the following amounts (reflected as a percentage of average
net assets for each fund's last fiscal year):
Putnam VT Asia Pacific Growth Fund 0.80%
Putnam VT Diversified Income Fund 0.67%
Putnam VT Global Asset Allocation Fund 0.65%
Putnam VT Global Growth Fund* 0.60%
Putnam VT Growth and Income Fund 0.46%
Putnam VT High Yield Fund 0.64%
Putnam VT Income Fund 0.60%
Putnam VT International Growth Fund 0.80%
Putnam VT International Growth and Income Fund 0.80%
Putnam VT International New Opportunities Fund** 1.18%
Putnam VT Money Market Fund
0.45%
Putnam VT New Opportunities Fund 0.56%
Putnam VT New Value Fund 0.70%
Putnam VT Utilities Growth and Income Fund 0.65%
Putnam VT Vista Fund 0.65%
Putnam VT Voyager Fund 0.54%
* On June 4, 1999, the Trustees approved a proposal
to increase the fees payable Putnam Management under
the fund's Management Contract. The proposed
increase is subject to shareholder approval and will
be submitted to shareholders at a meeting scheduled
to be held on November 4, 1999. If approved at that
meeting, management fees would thereafter be paid at
the annual rate of 0.80% of the first $500 million of
average net assets, 0.70% of the next $500 million,
0.65% of the next $500 million, 0.60% of the next $5
billion, 0.575% of the next $5 billion, 0.555% of the
next $5 billion, 0.54% of the next $5 billion, and
0.53% of any amount thereafter. If the new contract
had been in effect during 1998, all fees paid to
Putnam Management would have been 0.70% of average
net assets for the year.
** The management fee shown in the table reflects an
expense limitation then in effect or currently in
effect. In the absence of an expense limitation, the
management fee for Putnam VT International New
Opportunities Fund would have been
1.20%.
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