PUTNAM VARIABLE TRUST, 485BPOS, 2000-04-28

PUTNAM VARIABLE TRUST
485BPOS, 2000-04-28

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As filed with the Securities and Exchange Commission on

April 28, 2000

Registration No. 33-17486
811-5346
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

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FORM N-1A
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REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 /X/
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Pre-Effective Amendment No. / /
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Post-Effective Amendment No. 24 /X/

and ----
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REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY /X/
ACT OF 1940 ----
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Amendment No. 25 /X/

(Check appropriate box or boxes) ----

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PUTNAM VARIABLE TRUST
(Exact name of registrant as specified in charter)

One Post Office Square, Boston, Massachusetts 02109
(Address of principal executive offices)

Registrant's Telephone Number, including Area Code
(617) 292-1000
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It is proposed that this filing will become effective
(check appropriate box)

- ----
/ / immediately upon filing pursuant to paragraph (b)
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- ----

/ X / on April 30, 2000 pursuant to paragraph (b)

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/ / 60 days after filing pursuant to paragraph (a)(1)
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/ / on (date) pursuant to paragraph (a)(1)
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/ / 75 days after filing pursuant to paragraph (a)(2)

- ----
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/ / on (date) pursuant to paragraph (a)(2) of Rule 485.

- ----

If appropriate, check the following box:
- ----
/ / this post-effective amendment designates a new
- ---- effective date for a previously filed post-effective amendment.

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JOHN R. VERANI, Vice President
PUTNAM VARIABLE TRUST
One Post Office Square
Boston, Massachusetts 02109
(Name and address of agent for service)
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Copy to:
JOHN W. GERSTMAYR, Esquire
ROPES & GRAY
One International Place
Boston, Massachusetts 02110
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Prospectus

April 30, 2000

Putnam Variable Trust

Class IA Shares

Growth Funds

Putnam VT Asia Pacific Growth Fund

Putnam VT Global Growth Fund

Putnam VT Growth Opportunities Fund

Putnam VT Health Sciences Fund

Putnam VT International Growth Fund

Putnam VT International New Opportunities Fund

Putnam VT Investors Fund

Putnam VT New Opportunities Fund
Putnam VT OTC & Emerging Growth Fund
Putnam VT Research Fund
Putnam VT Vista Fund
Putnam VT Voyager Fund

Asset Allocation Fund

Putnam VT Global Asset Allocation

Growth and Income Funds

Putnam VT The George Putnam Fund of Boston

Putnam VT Growth and Income Fund
Putnam VT International Growth and Income Fund
Putnam VT New Value Fund
Putnam VT Small Cap Value Fund
Putnam VT Utilities Growth and Income Fund

Income Funds

Putnam VT American Government Income Fund

Putnam VT Diversified Income Fund
Putnam VT High Yield Fund
Putnam VT Income Fund

Money Market Fund

Putnam VT Money Market Fund

This prospectus explains what you should know about the funds in Putnam
Variable Trust, which are available for purchase by separate accounts of
insurance companies.

Putnam Investment Management, Inc. (Putnam Management), which has managed
mutual funds since 1937, manages the funds. These securities have not been
approved or disapproved by the Securities and Exchange Commission nor has
the Commission passed upon the accuracy or adequacy of this prospectus.
Any statement to the contrary is a crime.

CONTENTS

Fund summaries (including Goal, Main investment strategies, Main risks and
Performance Information)

What are the funds' main investment strategies and related risks?

Who manages the funds?

How to buy and sell fund shares

How do the funds price their shares?

Fund distributions and taxes

Financial highlights

Fund summaries

The following summaries identify each fund's goal, main investment
strategies and the main risks that could adversely affect the value of a
fund's shares and the total return on your investment. Each summary also
contains performance information that provides some indication of each
fund's risks. The chart contained in each summary shows year-to-year
changes in the performance of the fund's class IA shares. A table
following each chart compares the fund's performance to that of broad
measures of market performance. Of course, a fund's past performance is
not necessarily an indication of future performance. None of the
performance information reflects the impact of insurance-related charges or
expenses. If it did, performance would be less than that shown. Please
refer to the prospectus for your insurance contract for information about
those charges and performance data reflecting those charges and expenses.

More detailed descriptions of the funds, including the risks associated
with investing in the funds, can be found further back in this prospectus.
Please be sure to read this additional information before you invest.

You can lose money by investing in any of the funds. A fund may not
achieve its goal, and none of the funds is intended as a complete
investment program. An investment in any fund is not a deposit in a bank
and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. Although Putnam VT Money
Market Fund seeks to preserve the value of your investment at $1.00 per
share, you may lose money by investing in that fund.

PUTNAM VT AMERICAN GOVERNMENT INCOME FUND

GOAL

The fund seeks high current income with preservation of capital as its
secondary objective.

MAIN INVESTMENT STRATEGIES -- U.S. GOVERNMENT BONDS

We invest mostly in bonds that

* are obligations of the U.S. government, its agencies and instrumentalities,

* are either backed by the full faith and credit of the United States, such
as U.S. Treasury bonds and Ginnie Mae mortgage-backed bonds, or backed only
by the credit of a federal agency or government sponsored entity, such as
Fannie Mae mortgage-backed bonds, and

* have intermediate- to long-term maturities (three years or longer).

We may also invest in mortgage-backed investments of private issuers rated
AAA or its equivalent, at the time of purchase, by a nationally recognized
securities rating agency, or if unrated, that we determine to be of
comparable quality.

MAIN RISKS

* The risk that movements in financial markets will adversely affect the
value of the fund's investments. This risk includes interest rate risk,
which means that the prices of the fund's investments are likely to fall
if interest rates rise. Interest rate risk is generally highest for
investments with long maturities.

* The risk that the issuers of the fund's investments will not make timely
payments of interest and principal.

* The risk that, compared to other debt, mortgage-backed investments may
increase in value less when interest rates decline, and decline in value
more when interest rates rise.

PERFORMANCE INFORMATION

Performance information will be available after the fund completes a full
calendar year of operation.

PUTNAM VT ASIA PACIFIC GROWTH FUND

GOAL

The fund seeks capital appreciation.

MAIN INVESTMENT STRATEGIES -- ASIAN AND PACIFIC BASIN STOCKS

We normally invest mostly in common stocks of Asian or Pacific Basin
companies. We first select the countries and industries we believe are
attractive. We then seek stocks offering opportunity for gain. We look
for companies with stock prices that reflect a lower value than that which
we place on the company. We also look for the presence of factors we think
will cause the stock price to increase toward that value. We invest mainly
in midsized and large companies, although we can invest in companies of any
size. Although we emphasize investments in developed countries, we may
also invest in companies located in developing (also known as emerging)
markets.

MAIN RISKS

* The risks of investing outside the United States, such as currency
fluctuations, economic or financial instability, lack of timely or
reliable financial information or unfavorable political or legal
developments. These risks are increased for investments in emerging
markets.

* The risks of investing mostly in one geographic region. Investments
in a single region, even though representing a number of different
countries within the region, may be affected by common economic forces
and other factors. This vulnerability to factors affecting Asian and
Pacific Basin investments is significantly greater than for a more
geographically diversified fund, which may result in greater losses and
volatility.

* The risk that the stock price of one or more of the companies in the fund's
portfolio will fall, or will fail to rise. Many factors can adversely
affect a stock's performance, including both general financial market
conditions and factors related to a specific company or industry. This
risk is generally greater for small and midsized companies, which tend to
be more vulnerable to adverse developments.

* The risk that movements in financial markets will adversely affect the
price of the fund's investments, regardless of how well the companies in
which we invest perform.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: bar chart CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES

1996 9.10%
1997 -14.66%
1998 - 5.48%

1999 107.56%

Year-to-date performance through 3/31/2000 was - 6.64%. During the
periods shown in the bar chart, the highest return for a quarter was
41.72% (quarter ending 12/31/99) and the lowest return for a quarter
was -15.83% (quarter ending 12/31/97).

Average annual total returns (for periods ending 12/31/99)

Since
Past Inception
1 year (5/1/95)

Class IA 107.56% 14.33%
MSCI Pacific Index 57.63% 2.11%

The fund's performance benefited from Putnam Management's agreement to
limit the fund's expenses through the period ended December 31, 1995. The
fund's performance is compared to the Morgan Stanley Capital International
(MSCI) Pacific Index, an unmanaged index of equity securities issued by
companies located in one of five Asian countries and listed on the
exchanges of Australia, New Zealand, Japan, Hong Kong, Singapore/Malaysia,
with all values expressed in U.S. dollars.

PUTNAM VT DIVERSIFIED INCOME FUND

GOAL

The fund seeks as high a level of current income as Putnam Management
believes is consistent with preservation of capital.

MAIN INVESTMENT STRATEGIES -- MULTI-SECTOR BONDS

We invest mostly in bonds that

* are obligations of corporations and governments worldwide,

* are a combination of investment-grade and below investment-grade securities
(junk bonds), and

* have intermediate- to long-term maturities (three years or longer).

We invest a portion of the fund in each of three sectors:

* U.S. and investment-grade sector: U.S. government securities and
investment-grade bonds of U.S. corporations.

* High yield sector: lower-rated bonds of U.S. corporations.

* International sector: bonds of foreign governments and corporations,
including both investment-grade and lower-rated securities.

MAIN RISKS

* The risk that movements in financial markets will adversely affect the
value of the fund's investments. This risk includes interest rate risk,
which means that the prices of the fund's investments are likely to fall if
interest rates rise. Interest rate risk is generally highest for
investments with long maturities.

* The risk that the issuers of the fund's investments will not make timely
payments of interest and principal. This credit risk is higher for debt
that is below investment grade in quality. Because the fund invests
significantly in junk bonds, this risk is heightened for the fund.
Investors should carefully consider the risks associated with an investment
in the fund.

* The risk that, compared to other debt, mortgage-backed investments may
increase in value less when interest rates decline, and decline in value
more when interest rates rise.

* The risks of investing outside the United States, such as currency
fluctuations, economic or financial instability, lack of timely or reliable
financial information or unfavorable political or legal developments in
foreign markets. These risks are increased for investments in emerging
markets.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: bar chart CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES

1994 -4.23%
1995 19.13%
1996 8.81%
1997 7.38%
1998 -1.37%

1999 1.66%

Year-to-date performance through 3/31/2000 was 0.63%. During the periods
shown in the bar chart, the highest return for a quarter was 5.97% (quarter
ending 6/30/95) and the lowest return for a quarter was - 4.94% (quarter
ending 9/30/98).

Average annual total returns (for periods ending 12/31/99)

Since
Past Past Inception
1 year 5 years (9/15/93)

Class IA 1.66% 6.89% 5.10%
Lehman Brothers Mortgage-Backed
Bond Index 1.85% 7.98% 6.21%
Lehman Brothers Aggregate
Bond Index -0.82% 7.73% 5.65%
Salomon Brothers Non- U.S. World
Government Bond Index -4.26% 6.42% 5.48%
First Boston High Yield
Bond Index 3.28% 9.08% 7.77%

The fund's performance is compared to the Lehman Brothers Mortgage- Backed
Bond Index, an unmanaged index of U.S. government and mortgage-backed
securities; the Lehman Brothers Aggregate Bond Index, an unmanaged index
that is frequently used as a broad market measure for U.S denominated
investment grade fixed-income securities; the Salomon Brothers Non-U.S.
World Government Bond Index, an unmanaged index of bonds issued by ten
countries, excluding the United States; and the First Boston High Yield
Bond Index, an unmanaged index of lower-rated, higher-yielding U.S.
corporate bonds. The Lehman Brothers Aggregate Bond Index is replacing the
Lehman Brothers Mortgage-Backed Bond Index because Putnam Management
believes the Lehman Brothers Aggregate Bond Index is a more appropriate
index against which to compare the fund's performance.

PUTNAM VT THE GEORGE PUTNAM FUND OF BOSTON

GOAL

The fund seeks to provide a balanced investment composed of a well
diversified portfolio of stocks and bonds which produce both capital
growth and current income.

MAIN INVESTMENT STRATEGIES -- VALUE STOCKS AND BONDS

We invest mainly in a combination of U.S. value stocks and bonds with a
greater focus on value stocks. Value stocks are those we believe are
currently undervalued by the market. We look for companies undergoing
positive change. If we are correct and other investors recognize the
value of the company, the price of the stock may rise. We buy bonds of
governments and private companies that are mostly investment-grade in
quality with intermediate- to long-term maturities (three years or
longer). We invest mainly in large companies.

MAIN RISKS

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general financial
market conditions and factors related to a specific company or industry.
This risk is generally greater for small and midsized companies, which
tend to be more vulnerable to adverse developments.

* The risk that movements in financial markets will adversely affect the
price of the fund's investments, regardless of how well the companies in
which we invest perform. The market as a whole may not favor the types of
investments we make.

* The risk that prices of bonds we buy will fall if interest rates rise.
Interest rate risk is generally higher for investments with longer
maturities.

* The risk that issuers of bonds we buy will not make timely payments of
interest and principal. This credit risk is generally higher for debt that
is below investment-grade in quality.

* The risk that our allocation of investments between stocks and bonds
may adversely affect the fund's performance.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: bar chart CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES

1999 -0.36

Year-to-date performance through 3/31/2000 was -0.80%. During the periods
shown in the bar chart, the highest return for a quarter was 4.92%
(quarter ending 6/30/99) and the lowest return for a quarter was - 6.80%
(quarter ending 9/30/99).

Average annual total returns (for periods ending 12/31/99)

Since
Past Inception
1 year (4/30/98)

Class IA -0.36% 1.97%
S&P 500 Index 21.04% 19.80%
Lehman Brothers Government/
Corporate Bond Index -2.16% 2.95%

The fund's performance benefited from Putnam Management's agreement to
limit the fund's expenses through the period ended July 31, 1999. The
fund's performance is compared to the Standard & Poor's 500 Index, an
unmanaged index of common stocks frequently used as a general measure of
U.S. stock market performance. The fund's performance is also compared to
the Lehman Brothers Government/Corporate Bond Index, an unmanaged index of
publicly issued U.S. governmental and corporate debt obligations used as a
general measure of the performance of fixed-income securities.

PUTNAM VT GLOBAL ASSET ALLOCATION FUND

GOAL

The fund seeks a high level of long-term total return consistent with
preservation of capital.

MAIN INVESTMENT STRATEGIES -- ASSET ALLOCATION

We invest in a wide variety of equity and fixed-income securities both of
U.S. and foreign issuers. We may invest in securities in the following
four investment categories, which we believe represent large,
well-differentiated classes of securities with distinctive investment
characteristics:

* U.S. Equities: This sector will invest primarily in growth and value
stocks of U.S. companies. Growth stocks are issued by companies whose
earnings we believe are likely to grow faster than the economy as a whole.
Growth in earnings may lead to an increase in the price of the stock.
Value stocks are those we believe are currently undervalued compared to
their true worth. If we are correct and other investors recognize the value
of the company, the price of the stock may rise.

* International Equities: This sector will invest primarily in growth and
value stocks principally traded in foreign securities markets.

* U.S. Fixed-income: This sector will invest primarily in fixed-income
securities of U.S. companies or the U.S. government, its agencies or
instrumentalities, mortgage-backed and asset-backed securities, convertible
securities and preferred stock.

* International Fixed-income: This sector will invest primarily in
fixed-income securities denominated in foreign currencies of non-U.S.
companies or foreign governmental issuers or supranational agencies.

The allocation of fund assets assigned to each investment category will be
reevaluated at least quarterly based on an assessment of the relative
market opportunities and risks of each investment category taking into
account various economic and market factors. The fund may from time to
time invest in all or any one of the investment categories as we may
consider appropriate in response to changing market conditions. We expect
that under normal market conditions the fund will invest a majority of its
assets in equity securities. We can invest in companies of any size.

MAIN RISKS

* The risk that the stock price of one or more of the companies in the fund's
portfolio will fall, or will fail to rise. Many factors can adversely affect
a stock's performance, including both general financial market conditions
and factors related to a specific company or industry. This risk is
generally greater for small and midsized companies, which tend to be more
vulnerable to adverse developments.

* The risk that movements in financial markets will adversely affect the price
of the fund's investments, regardless of how well the companies in which we
invest perform.

* The risk that prices of bonds we buy will fall if interest rates rise.
Interest rate risk is generally highest for investments with longer
maturities.

* The risk that issuers of bonds we buy will not make timely payments of
interest and principal. This credit risk is generally higher for debt that
is below investment-grade in quality.

* The risk that, compared to other debt, mortgage-backed investments may
increase in value less when interest rates decline, and decline in value
more when interest rates rise.

* The risks of investing outside the United States, such as currency
fluctuations, economic or financial instability, lack of timely or reliable
financial information, or unfavorable political or legal developments.
These risks are increased for investments in emerging markets.

* The risk that our allocation of investments between stocks and bonds may
adversely affect the fund's performance.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: bar chart CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES

1990 0.18%
1992 19.02%
1994 6.29%
1996 17.48%
1998 -2.50%
2000 24.71%
2002 15.62%
2004 19.67%
2006 13.47%
2008 11.85%

Year-to-date performance through 3/31/2000 was 0.95%. During the periods
shown in the bar chart, the highest return for a quarter was 14.51%
(quarter ending 12/31/98) and the lowest return for a quarter was -10.30%
(quarter ending 9/30/98).

Average annual total returns (for periods ending 12/31/99)

Past Past Past
1 year 5 years 10 years

Class IA 11.85% 16.97% 12.26%
MSCI World Index 24.95% 19.76% 11.43%

The fund's performance is compared to the Morgan Stanley Capital
International (MSCI) World Index, an unmanaged index of global equity
securities, with all values expressed in U.S. dollars.

PUTNAM VT GLOBAL GROWTH FUND

GOAL

The fund seeks capital appreciation.

MAIN INVESTMENT STRATEGIES -- GLOBAL GROWTH STOCKS

We normally invest in common stocks of companies worldwide. We invest
mainly in growth stocks, which are those issued by companies that we
believe are fast-growing and whose earnings we believe are likely to
increase over time. Growth in earnings may lead to an increase in the
price of the stock. We invest mainly in midsized and large companies,
although we can invest in companies of any size. Although we emphasize
investments in developed countries, we may also invest in companies
located in developing (also known as emerging) markets.

MAIN RISKS

* The risks of investing outside the United States, such as currency
fluctuations, economic or financial instability, lack of timely or
reliable financial information, or unfavorable political or legal
developments. These risks are increased for investments in emerging
markets.

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general financial
market conditions and factors related to a specific company or industry.
This risk is generally greater for small and midsized companies, which
tend to be more vulnerable to adverse developments.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: bar chart CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES

1991 15.01%
1992 -0.36%
1993 32.40%
1994 -0.96%
1995 15.67%
1996 17.20%
1997 14.33%
1998 29.71%

1999 65.00%

Year-to-date performance through 3/31/2000 was 4.61%. During the periods
shown in the bar chart, the highest return for a quarter was 48.01%
(quarter ending 12/31/99) and the lowest return for a quarter was -12.18%
(quarter ending 9/30/98).

Average annual total returns (for periods ending 12/31/99)

Since
Past Past Inception
1 year 5 years (5/1/90)

Class IA 65.00% 27.10% 17.21%
MSCI World Index 24.94% 19.76% 13.82%
MSCI All-Country World Free 30.90% 12.39% 10.05%

The fund's performance is compared to the Morgan Stanley Capital
International (MSCI) World Index, an unmanaged index of global equity
securities composed of companies in 22 Developed Market countries in North
America, Europe and the Asia/Pacific Region with all values expressed in
U.S. dollars. The fund's performance is also compared to the Morgan
Stanley Capital International (MSCI) All-Country World Free Index, an
unmanaged index of global equity securities of companies in 47 Developed
and Emerging Market Countries in the Americas, Europe/Middle East and
Asia/Pacific Region with all values expressed in U.S. dollars. The MSCI
All-Country World Free Index is replacing the MSCI World Index because
Putnam Management believes the MSCI All-Country World Free Index is a more
appropriate index against which to compare the fund's performance.

PUTNAM VT GROWTH AND INCOME FUND

GOAL

The fund seeks capital growth and current income.

MAIN INVESTMENT STRATEGIES -- VALUE STOCKS

We invest mainly in common stocks of U.S. companies with a focus on value
stocks. Value stocks are those we believe are currently undervalued by
the market. We look for companies undergoing positive change. If we are
correct and other investors recognize the value of the company, the price
of the stock may rise. We invest mainly in large companies.

MAIN RISKS

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general financial
market conditions and factors related to a specific company or industry.
This risk is generally greater for small and midsized companies, which tend
to be more vulnerable to adverse developments.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: bar chart CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES

1990 1.96%
1991 19.05%
1992 9.75%
1993 14.27%
1994 0.35%
1995 36.71%
1996 21.92%
1997 24.15%
1998 15.42%

1999 1.59%

Year-to-date performance through 3/31/2000 was - 1.76%. During the periods
shown in the bar chart, the highest return for a quarter was 16.62%
(quarter ending 12/31/98) and the lowest return for a quarter was - 10.14%
(quarter ending 9/30/99).

Average annual total returns (for periods ending 12/31/99)

Past Past Past
1 year 5 years 10 years

Class IA 1.59% 19.39% 14.00%
S&P 500 Index 21.04% 28.56% 18.21%

The fund's performance is compared to the Standard & Poor's 500 Index, an
unmanaged index of common stocks frequently used as a general measure of
U.S. stock market performance.

PUTNAM VT GROWTH OPPORTUNITIES FUND

GOAL

The fund seeks capital appreciation.

MAIN INVESTMENT STRATEGIES -- GROWTH STOCKS

We invest mainly in common stocks of U.S. companies, with a focus on growth
stocks. Growth stocks are issued by companies that we believe are
fast-growing and whose earnings we believe are likely to increase over
time. Growth in a company's earnings may lead to an increase in the price
of its stock. We invest in a relatively small number of companies that we
believe will benefit from long-term trends in the economy, business
conditions, consumer behavior or public perceptions of the economic
environment. We invest mainly in large companies.

MAIN RISKS

* The risk of loss from investing in fewer issuers than a fund that invests
more broadly. This vulnerability to factors affecting a single investment
can result in greater fund losses and volatility.

PERFORMANCE INFORMATION

Performance information will be available after the fund completes a full
calendar year of operation.

PUTNAM VT HEALTH SCIENCES FUND

GOAL

The fund seeks capital appreciation.

MAIN INVESTMENT STRATEGIES -- GROWTH STOCKS

We invest mainly in common stocks of U.S. companies in the health sciences
industries, with a focus on growth stocks. Growth stocks are issued by
companies that we believe are fast-growing and whose earnings we believe
are likely to increase over time. Growth in a company's earnings may lead
to an increase in the price of its stock. We invest mainly in midsized and
large companies.

Industry focus. We invest primarily in companies that provide health care
services, applied research and development, pharmaceutical products, and
medical equipment and supplies, and companies that we believe will grow as
a result of their products, patents or other market advantages in the
health sciences industries. Events that affect the health sciences
industries will have a greater effect on the fund than they would on a fund
that is more widely diversified among a number of unrelated industries.
Examples include technological advances that make existing products and
services obsolete, and changes in regulatory policies concerning approvals
of new drugs, medical devices or procedures. In addition, changes in
governmental payment systems and use of managed care arrangements may be
more likely to adversely affect the fund.

MAIN RISKS

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general financial
market conditions and factors related to a specific company or industry.
This risk is generally greater for small and midsized companies, which
tend to be more vulnerable to adverse developments.

* The risk of investing in a single group of industries. Investments in the
health sciences industries, even though representing interests in different
companies within these industries, may be affected by common economic
forces and other factors. This vulnerability to factors affecting the
health sciences industries is significantly greater than for a fund that
invests in a broader range of industries , and may result in greater fund
losses and volatility.

* The risk of loss from investing in fewer issuers than a fund that invests
more broadly. The fund is "non-diversified," which means that it may invest
more of its assets in the securities of fewer companies than a "diversified"
fund. This vulnerability to factors affecting a single investment can result
in greater fund losses and volatility.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: bar chart CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES

1999 -3.93

Year-to-date performance through 3/31/2000 was 14.57%. During the periods
shown in the bar chart, the highest return for a quarter was 9.25% (quarter
ending 12/31/99) and the lowest return for a quarter was -5.59% (quarter
ending 9/30/99).

Average annual total returns (for periods ending 12/31/99)

Since
Past Inception
1 year (4/30/98)

Class IA -3.93% 3.08%
S&P 500 Index 21.04% 19.80%

The fund's performance benefited from Putnam Management's agreement to
limit the fund's expenses through the period ended December 31, 1999. The
fund's performance is compared to the Standard & Poor's 500 Index, an
unmanaged index of common stocks frequently used as a general measure of
U.S. stock market performance.

PUTNAM VT HIGH YIELD FUND

GOAL

The fund seeks high current income. Capital growth is a secondary goal
when consistent with high current income.

MAIN INVESTMENT STRATEGIES -- LOWER-RATED BONDS

We invest mostly in bonds that

* are obligations of U.S. corporations,

* are below investment grade in quality (junk bonds), and

* have intermediate- to long-term maturities (three years or longer).

MAIN RISKS

* The risk that the issuers of the fund's investments will not make timely
payments of interest and principal. This credit risk is higher for debt
that is below investment grade in quality. Because the fund invests mainly
in junk bonds, this risk is heightened for the fund. Investors should
carefully consider the risks associated with an investment in the fund

* The risk that movements in financial markets will adversely affect the
value of the fund's investments. This risk includes interest rate risk,
which means that the prices of the fund's investments are likely to fall if
interest rates rise. Interest rate risk is generally highest for
investments with long maturities.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: bar chart CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES

1990 -9.98%
1991 44.83%
1992 18.98%
1993 19.57%
1994 -0.94%
1995 18.32%
1996 12.81%
1997 14.34%
1998 -5.86%

1999 5.92%

Year-to-date performance through 3/31/2000 was - 0.60%. During the
periods shown in the bar chart, the highest return for a quarter was 19.79%
(quarter ending 3/31/91) and the lowest return for a quarter was - 9.95%
(quarter ending 9/30/98).

Average annual total returns (for periods ending 12/31/99)

Past Past Past
1 year 5 years 10 years

Class IA 5.92% 8.76% 10.83%
First Boston High
Yield Bond Index 3.28% 9.08% 11.06%

The fund's performance is compared to the First Boston High Yield Bond
Index, an unmanaged index of lower-rated, higher-yielding U.S. corporate
bonds. The First Boston High Yield Bond Index includes over 180 issues
with an average maturity range of 7 to 10 years.

PUTNAM VT INCOME FUND

GOAL

The fund seeks current income consistent with preservation of capital.

MAIN INVESTMENT STRATEGIES -- MULTI-SECTOR BONDS

We invest mostly in bonds that

* are obligations of corporations and governments worldwide denominated in
U.S. dollars,

* are a combination of investment grade and below investment-grade securities
(junk bonds), and

* have intermediate- to long-term maturities (three years or longer).

MAIN RISKS

* The risk that movements in financial markets will adversely affect the
value of the fund's investments. This risk includes interest rate risk,
which means that the prices of the fund's investments are likely to fall if
interest rates rise. Interest rate risk is generally highest for investments
with long maturities .

* The risk that the issuers of the fund's investments will fail to make timely
payments of interest and principal . This credit risk is higher for debt
that is below investment-grade quality. Because the fund invests
significantly in junk bonds, this risk is heightened for the fund. Investors
should carefully consider the risks associated with an investment in the
fund.

* The risk that , compared to other debt, mortgage-backed investments may
increase in value less when interest rates decline, and decline in value more
when interest rates rise.

PERFORMANCE INFORMATION

Prior to April 9, 1999, the fund's policies required it to invest at least
25% of its assets in U.S. government securities and limited the amount of
assets invested in securities rated below A. Consequently, the historic
information in the table does not reflect the fund's performance under its
current investment policies .

[GRAPHIC OMITTED: bar chart CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES

1990 7.51%
1991 17.28%
1992 7.49%
1993 11.28%
1994 -3.23%
1995 20.44%
1996 2.42%
1997 8.64%
1998 8.25%

1999 -2.07%

Year-to-date performance through 3/31/2000 was 1.33%. During the periods
shown in the bar chart, the highest return for a quarter was 6.78%
(quarter ending 6/30/95) and the lowest return for a quarter was - 3.17%
(quarter ending 3/31/96).

Average annual total returns (for periods ending 12/31/99)

Past Past Past
1 year 5 years 10 years

Class IA -2.07% 7.27% 7.56%
Lehman Brothers
Aggregate Bond Index -0.82% 7.73% 7.70%

The fund's performance is compared to the Lehman Brothers Aggregate Bond
Index, an unmanaged index of investment-grade bonds.

PUTNAM VT INTERNATIONAL GROWTH FUND

GOAL

The fund seeks capital appreciation.

MAIN INVESTMENT STRATEGIES -- INTERNATIONAL STOCKS

We normally invest mostly in common stocks of companies outside the United
States. We first select the countries and industries we believe are
attractive. We then seek stocks offering opportunity for gain. We look
for companies with stock prices that reflect a lower value than that which
we place on the company. We also look for the presence of factors we think
will cause the stock price to increase toward that value. We invest mainly
in midsized and large companies, although we can invest in companies of any
size. Although we emphasize investments in developed countries, we may
also invest in companies located in developing (also known as emerging)
markets.

MAIN RISKS

* The risks of investing outside the United States, such as currency
fluctuations, economic or financial instability, lack of timely or
reliable financial information or unfavorable political or legal
developments in international markets. The risks are increased
for investments in emerging markets.

* The risk that the stock price of one or more of the companies in
the fund's portfolio will fall, or will fail to rise. Many factors
can adversely affect a stock's performance, including both general
financial market conditions and factors related to a specific company
or industry. This risk is generally greater for small and midsized
companies, which tend to be more vulnerable to adverse developments.

* The risk that movements in financial markets will adversely affect
the price of the fund's investments, regardless of how well the
companies in which we invest perform.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: bar chart CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES

1998 18.69%

1999 60.21%

Year-to-date performance through 3/31/2000 was 6.10%. During the periods
shown in the bar chart, the highest return for a quarter was 35.46%
(quarter ending 12/31/99) and the lowest return for a quarter was - 18.92%
(quarter ending 9/30/98).

Average annual total returns (for periods ending 12/31/99)

Since
Past Inception
1 year (1/2/97)

Class IA 60.21% 30.33%
MSCI EAFE Index 26.96% 15.76%

The fund's performance benefited from Putnam Management's agreement to
limit the fund's expenses through the period ended December 31, 1998. The
fund's performance is compared to the Morgan Stanley Capital International
(MSCI) EAFE Index, an unmanaged index of equity securities from Europe,
Australia, and the Far East, with all values expressed in U.S. dollars.

PUTNAM VT INTERNATIONAL GROWTH AND INCOME FUND

GOAL

The fund seeks capital growth. Current income is a secondary objective.

MAIN INVESTMENT STRATEGIES -- INTERNATIONAL VALUE STOCKS

We normally invest mostly in common stocks of companies outside the United
States. We invest mainly in value stocks that offer the potential for
income. We look for companies undergoing positive change. Value stocks
are those that we believe are currently undervalued by the market. If we
are correct and other investors recognize the value of the company, the
price of these stocks may rise. We invest mainly in midsized and large
companies, although we can invest in companies of any size. Although we
emphasize investments in developed countries, we may also invest in
companies located in developing (also known as emerging) markets.

MAIN RISKS

* The risks of investing outside the United States, such as currency
fluctuations, economic or financial instability, lack of timely or
reliable financial information, or unfavorable political or legal
developments . These risks are increased for investments in emerging
markets.

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general financial
market conditions and factors related to a specific company or industry.
This risk is generally greater for small and midsized companies, which
tend to be more vulnerable to adverse developments.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: bar chart CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES

1998 11.28%

1999 24.59%

Year-to-date performance through 3/31/2000 was 2.65%. During the periods
shown in the bar chart, the highest return for a quarter was 16.54%
(quarter ending 12/31/98) and the lowest return for a quarter was - 17.32%
(quarter ending 9/30/98).

Average annual total returns (for periods ending 12/31/99)

Since
Past Inception
1 year (1/2/97)

Class IA 24.59% 18.37%
MSCI EAFE Index 26.96% 15.76%

The fund's performance benefited from Putnam Management's agreement to
limit the fund's expenses through the period ended December 31, 1998. The
fund's performance is compared to the Morgan Stanley Capital International
(MSCI) EAFE Index, an unmanaged index of equity securities from Europe,
Australia, and the Far East, with all values expressed in U.S. dollars.

PUTNAM VT INTERNATIONAL NEW OPPORTUNITIES FUND

GOAL
The fund seeks long-term capital appreciation.

MAIN INVESTMENT STRATEGIES -- INTERNATIONAL GROWTH STOCKS

We normally invest mainly in common stocks of companies outside the United
States. We invest mainly in growth stocks, which are those issued by
companies that we believe are fast-growing and whose earnings we believe
are likely to increase over time. Growth in earnings may lead to an
increase in the price of the stock. We may invest in companies of any
size. We may invest in both established and developing (also known as
emerging) markets.

MAIN RISKS

* The risks of investing outside the United States, such as currency
fluctuations, economic or financial instability, lack of timely or
reliable financial information, or unfavorable political or legal
developments. These risks are increased for investments in emerging
markets.

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance , including both general
financial market conditions and factors related to a specific company
or industry. This risk is generally greater for small and midsized
companies, which tend to be more vulnerable to adverse developments.

* The risk that movements in financial markets will adversely affect
the price of the fund's investments, regardless of how well the
companies in which we invest perform. The market as a whole may not
favor the types of investments we make.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: bar chart CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES

1998 15.58%
1999 102.96%

Year-to-date performance through 3/31/2000 was 4.68%. During the periods
shown in the bar chart, the highest return for a quarter was 57.18%
(quarter ending 12/31/99) and the lowest return for a quarter was - 16.61%
(quarter ending 9/30/98).

Average annual total returns (for periods ending 12/31/99)

Since
Past Inception
1 year (1/2/97)

Class IA 102.96% 32.95%
MSCI EAFE Index 26.96% 15.76%

The fund's performance benefited from Putnam Management's agreement to
limit the fund's expenses through the period ended December 31, 1998. The
fund's performance is compared to the Morgan Stanley Capital International
(MSCI) EAFE Index, an unmanaged index of international equity securities
from Europe, Australia and the Far East, with all values expressed in U.S.
dollars.

PUTNAM VT INVESTORS FUND

GOAL

The fund seeks long-term growth of capital and any increased income that
results from this growth.

MAIN INVESTMENT STRATEGIES -- GROWTH STOCKS

We invest mainly in common stocks of U.S. companies with a focus on growth
stocks. Growth stocks are issued by companies that we believe are
fast-growing and whose earnings we believe are likely to increase over
time. Growth in a company's earnings may lead to an increase in the price
of its stock. We invest mainly in large companies.

MAIN RISKS

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: bar chart CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES

1999 30.13%

Year-to-date performance through 3/31/2000 was 2.97%. During the periods
shown in the bar chart, the highest return for a quarter was 24.67%
(quarter ending 12/31/99) and the lowest return for a quarter was -4.93%
(quarter ending 9/30/99).

Average annual total returns (for periods ending 12/31/99)

Since
Past Inception
1 year (4/30/98)

Class IA 30.13% 28.40%
S&P 500 Index 21.04% 19.80%

PUTNAM VT MONEY MARKET FUND

GOAL

The fund seeks as high a rate of current income as Putnam Management
believes is consistent with preservation of capital and maintenance of
liquidity.

MAIN INVESTMENT STRATEGIES -- INCOME

We seek to maintain a stable net asset asset value of $1.00 per share for
the fund.

We invest primarily in instruments that:

* are high quality and
* have a short-term maturity.

Industry focus. We may invest without limit in money market investments
from the banking, personal credit and business credit industries. We may
invest over 25% of the fund's assets in money market investments from the
personal credit or business credit industries only when we determine that
the yields on those investments exceed the yields that are available from
eligible investments of issuers in the banking industry. The value of the
fund's shares may be more vulnerable than the values of shares of money
market funds that invest in issuers in a greater number of industries. To
the extent that a fund invests significantly in a particular industry, it
runs an increased risk of loss if economic or other developments affecting
that industry cause the prices of related money market investments to fall.

MAIN RISKS

* The risk that the value of your investment may be eroded over time by
the effects of inflation.

* The risk that, as a result of, for example, a deterioration in the credit
quality of issuers whose securities the fund holds or an increase in
interest rates, the fund may be unable to maintain a net asset value of
$1.00 per share.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: bar chart CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES

1990 7.98%
1991 5.92%
1992 3.57%
1993 2.79%
1994 3.82%
1995 5.46%
1996 5.08%
1997 5.22%
1998 5.19%
1999 4.86%

Year-to-date performance through 3/31/2000 was 1.36%. During the periods
shown in the bar chart, the highest return for a quarter was 1.99%
(quarter ending 6/30/90) and the lowest return for a quarter was 0.67%
(quarter ending 6/30/93).

Average annual total returns (for periods ending 12/31/99)

Past Past Past
1 year 5 years 10 years

Class IA 4.86% 5.16% 4.98%
Merrill Lynch 91-Day
Treasury Bill Index 4.85% 5.35% 5.28%
Lipper Money Market
Average 4.49% 4.95% 4.80%

The fund's performance is compared to the Merrill Lynch 91-Day Treasury
Bill Index, an unmanaged index that seeks to measure the performance of
United States Treasury bills currently available in the marketplace and the
Lipper Money Market Average is an arithmetic average of the total return of
all money market mutual funds tracked by Lipper , Inc.

PUTNAM VT NEW OPPORTUNITIES FUND

GOAL

The fund seeks long-term capital appreciation.

MAIN INVESTMENT STRATEGIES -- GROWTH STOCKS

We invest mainly in common stocks of U.S. companies with a focus on growth
stocks in sectors of the economy that we believe have high growth
potential. Growth stocks are issued by companies that we believe are
fast-growing and whose earnings we believe are likely to increase over
time. Growth in a company's earnings may lead to an increase in the price
of its stock. The growth sectors we currently target include
communications, media/entertainment, medical technology/cost containment,
industrial and environmental services, applied/advanced technology,
financial services, consumer products and services and business services.
We invest in companies of all sizes.

MAIN RISKS

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general financial
market conditions and factors related to a specific company or industry.
This risk is generally greater for small and midsized companies, which
tend to be more vulnerable to adverse developments.

* The risk of investing in a limited group of market sectors. The
vulnerability of the fund to factors affecting the sectors chosen may be
significantly greater than that of a fund that invests in a broader range
of sectors and may result in greater fund losses and volatility.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: bar chart CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES

1995 44.87%
1996 10.17%
1997 23.29%
1998 24.38%

1999 69.35%

Year-to-date performance through 3/31/2000 was 15.33%. During the
periods shown in the bar chart, the highest return for a quarter was
49.47% (quarter ending 12/31/99) and the lowest return for a quarter was
- -18.85% (quarter ending 9/30/98).

Average annual total returns (for periods ending 12/31/99)

Since
Past Past Inception
1 year 5 years (5/2/94)

Class IA 69.35% 32.89% 30.36%
Russell Midcap Growth Index 18.23% 21.86% 24.61%
S&P 500 Index 21.04% 28.56% 25.66%

The fund's performance benefited from Putnam Management's agreement to
limit the fund's expenses through the period ended December 31, 1994. The
fund's performance is compared to the Standard & Poor's 500 Index, an
unmanaged index of common stocks frequently used as a general measure of
U.S. stock market performance. The fund's performance is also compared to
the Russell Midcap Growth Index, an unmanaged index of common stocks of
midsized companies that are also listed on the Russell 1000 Growth Index.
The Russell Midcap Growth Index has been added because Putnam Management
believes this index is an appropriate index against which to compare the
fund's performance.

PUTNAM VT NEW VALUE FUND

GOAL

The fund seeks long-term capital appreciation.

MAIN INVESTMENT STRATEGIES -- VALUE STOCKS

We invest mainly in common stocks of U.S. companies with a focus on value
stocks. Value stocks are those we believe are currently undervalued by the
market. We look for companies undergoing positive change. If we are
correct and other investors recognize the value of the company, the price
of the stock may rise. We invest mainly in midsized and large companies.

MAIN RISKS

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general
financial market conditions and factors related to a specific company
or industry. This risk is generally greater for small and midsized
companies, which tend to be more vulnerable to adverse developments.

* The risk that movements in financial markets will adversely affect
the price of the fund's investments, regardless of how well the
companies in which we invest perform. The market as a whole may not
favor the types of investments we make.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: bar chart CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES

1998 6.26%

1999 0.27%

Year-to-date performance through 3/31/2000 was - 0.54%. During the
periods shown in the bar chart, the highest return for a quarter was 16.45%
(quarter ending 12/31/98) and the lowest return for a quarter was - 13.75%
(quarter ending 9/30/99).

Average annual total returns (for periods ending 12/31/99)

Since
Past Inception
1 year (1/2/97)

Class IA 0.27% 7.83%
S&P 500 Index 21.04% 24.77%

PUTNAM VT OTC & EMERGING GROWTH FUND

GOAL

The fund seeks capital appreciation.

MAIN INVESTMENT STRATEGIES -- GROWTH STOCKS

We invest mainly in common stocks of U.S. companies traded in the
over-the-counter (OTC) market and "emerging growth" companies listed on
securities exchanges, with a focus on growth stocks. Growth stocks are
issued by companies that we believe are fast-growing and whose earnings we
believe are likely to increase over time. Growth in a company's earnings
may lead to an increase in the price of its stock. Emerging growth
companies are those we believe have a leading or proprietary position in a
growing industry or are gaining market share in an established industry.
We invest mainly in small and midsized companies.

MAIN RISKS

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general financial
market conditions and factors related to a specific company or industry.
This risk is generally greater for small and midsized companies, which
tend to be more vulnerable to adverse developments.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: bar chart CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES

1999 126.52%

Year-to-date performance through 3/31/2000 was 10.52%. During the periods
shown in the bar chart, the highest return for a quarter was 76.22%
(quarter ending 12/31/99) and the lowest return for a quarter was 8.03%
(quarter ending 3/31/99).

Average annual total returns (for periods ending 12/31/99)

Since
Past Inception
1 year (4/30/98)

Class IA 126.52% 64.09%
Russell 2000 Growth Index 43.09% 16.30%

The fund's performance benefited from Putnam Management's agreement to
limit the fund's expenses through the period ended December 31, 1999. The
fund's performance is compared to the Russell 2000 Growth Index, an
unmanaged index composed of securities with greater-than-average growth
orientation within the Russell 2000 Index.

PUTNAM VT RESEARCH FUND

GOAL

The fund seeks capital appreciation.

MAIN INVESTMENT STRATEGIES -- GROWTH AND VALUE STOCKS

We invest mainly in common stocks of U.S. companies that we believe offer
the opportunity for gain. We look for companies with stock prices that
reflect a lower value than that which we place on the company. We also
look for the presence of factors we think will cause the stock price to
increase toward that value. We invest mainly in large companies.

MAIN RISKS

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general financial
market conditions and factors related to a specific company or industry.
This risk is generally greater for small and midsized companies, which
tend to be more vulnerable to adverse developments.

* The risk that movements in financial markets will adversely affect the
price of the fund's investments, regardless of how well the companies in
which we invest perform.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: bar chart CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES

1999 27.58%

Year-to-date performance through 3/31/2000 was 4.40%. During the periods
shown in the bar chart, the highest return for a quarter was 20.14%
(quarter ending 12/31/99) and the lowest return for a quarter was -5.35%
(quarter ending 9/30/99).

Average annual total returns (for periods ending 12/31/99)

Since
Past Inception
1 year (9/30/98)

Class IA 27.58% 40.14%
S&P 500 Index 21.04% 35.93%

PUTNAM VT SMALL CAP VALUE FUND

GOAL

The fund seeks capital appreciation.

MAIN INVESTMENT STRATEGIES -- VALUE STOCKS

MAIN RISKS

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general financial
market conditions and fact ors related to a specific company or industry.
This risk is generally greater for small and midsized companies, which
tend to be more vulnerable to adverse developments.

PERFORMANCE INFORMATION

Performance information will be available after the fund completes a full
calendar year of operation.

PUTNAM VT UTILITIES GROWTH AND INCOME FUND

GOAL

The fund seeks capital growth and current income.

MAIN INVESTMENT STRATEGIES -- VALUE STOCKS AND BONDS

We invest mainly in a combination of bonds and U.S. value stocks of
companies in the public utilities industries, with a significantly greater
focus on value stocks. Value stocks are those we believe are currently
undervalued by the market. We look for companies undergoing positive
change. If we are correct and other investors recognize the value of the
company, the price of the stock may rise. We buy bonds of governments and
private companies that are mostly investment-grade in quality with
intermediate- to long-term maturities (three years or longer). We invest
mainly in large companies.

Industry focus. We invest primarily in companies that produce or
distribute electricity, gas or other types of energy, supply water or
provide telecommunications services (but not public broadcasting or cable
television). Events that affect these public utilities industries will
have a greater effect on the fund than they would on a fund that is more
widely diversified among a number of unrelated industries. Examples
include increases in fuel and other operating costs, and technological
advances that make existing plants, equipment or products obsolete. In
addition, changes in regulatory policies concerning the environment, energy
conservation, nuclear power and utility pricing, as well as deregulation of
certain utility services, may be more likely to adversely affect the fund.

MAIN RISKS

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general financial
market conditions and factors related to a specific company or industry.
This risk is generally greater for small and midsized companies, which
tend to be more vulnerable to adverse developments.

* The risk of investing in a single group of industries. Investments in the
utilities industries, even though representing interests in different
companies within these industries, may be affected by common economic
forces and other factors. This vulnerability to factors affecting the
utilities industries is significantly greater than for a fund that invests
in a broader range of industries, and may result in greater fund losses
and volatility.

* The risk that prices of bonds we buy will fall if interest rates rise.
Interest rate risk is generally higher for investments with longer
maturities.

* The risk that issuers of bonds we buy will not make timely payments of
interest and principal. This credit risk is generally higher for debt
that is below investment-grade in quality.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: bar chart CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES

1993 13.42%
1994 -7.02%
1995 31.08%
1996 15.80%
1997 27.10%
1998 14.92%
1999 -0.66%

Year-to-date performance through 3/31/2000 was 2.37%. During the periods
shown in the bar chart, the highest return for a quarter was 12.32%
(quarter ending 12/31/97) and the lowest return for a quarter was - 6.76%
(quarter ending 3/31/94).

Average annual total returns (for periods ending 12/31/99)

Since
Past Past Inception
1 year 5 years (5/4/92)

Class IA -0.66% 17.10% 12.62%
S&P Utilities Index -8.88% 13.66% 11.07%
S&P 500 Index 21.04% 28.56% 20.58%

The fund's performance benefited from Putnam Management's agreement to
limit the fund's expenses through the period ended December 31, 1992. The
fund's performance is compared to the Standard & Poor's 500 Index, an
unmanaged index of common stocks frequently used as a general measure of
U.S. stock market performance. The fund's performance is also compared to
the S&P Utilities Index, an unmanaged list of common stocks issued by
utility companies. The S&P Utilities Index is replacing the S&P 500 Index
because Putnam Management believes the S&P Utilities Index is a more
appropriate index against which to compare the fund's performance.

PUTNAM VT VISTA FUND

GOAL

The fund seeks capital appreciation.

MAIN INVESTMENT STRATEGIES -- GROWTH STOCKS

MAIN RISKS

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general financial
market conditions and factors related to a specific company or industry.
This risk is generally greater for small and midsized companies, which
tend to be more vulnerable to adverse developments.

* The risk that movements in financial markets will adversely affect the
price of the fund's investments, regardless of how well the companies
in which we invest perform. The market as a whole may not favor the
types of investments we make.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: bar chart CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES

1998 19.48%

1999 52.90%

Year-to-date performance through 3/31/2000 was 21.23%. During the
periods shown in the bar chart, the highest return for a quarter was
41.28% (quarter ending 12/31/99) and the lowest return for a quarter
was -17.22% (quarter ending 9/30/98).

Average annual total returns (for periods ending 12/31/99)

Since
Past Inception
1 year (1/2/97)

Class IA 52.90% 31.17%
Russell Midcap Growth Index 51.29% 29.79%
S&P 500 Index 21.04% 27.58%

The fund's performance benefited from Putnam Management's agreement to
limit the fund's expenses through the period ended December 31, 1998. The
fund's performance is compared to the Standard & Poor's 500 Index, an
unmanaged index of common stocks frequently used as a general measure of
U.S. stock market performance. The fund's performance is also compared to
the Russell Midcap Growth Index, an unmanaged index that measures the
performance of those companies in the Russell Midcap Index that have higher
prices relative to the book value of their assets and higher forecasted
growth rates. The Russell Midcap Growth Index is replacing the S&P 500
Index because Putnam Management believes the Russell Midcap Growth Index is
a more appropriate index against which to compare the fund's performance.

PUTNAM VT VOYAGER FUND

GOAL

The fund seeks capital appreciation.

MAIN INVESTMENT STRATEGIES -- GROWTH STOCKS

MAIN RISKS

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general financial
market conditions and factors related to a specific company or industry.
This risk is generally greater for small and midsized companies, which
tend to be more vulnerable to adverse developments.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: bar chart CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES

1990 -2.03%
1991 46.09%
1992 10.36%
1993 18.70%
1994 1.04%
1995 40.67%
1996 12.97%
1997 26.51%
1998 24.36%

1999 58.22%

Year-to-date performance through 3/31/2000 was 10.82%. During the
periods shown in the bar chart, the highest return for a quarter was
41.38% (quarter ending 12/31/99) and the lowest return for a quarter
was -17.36% (quarter ending 9/30/90).

Average annual total returns (for periods ending 12/31/99)

Past Past Past
1 year 5 years 10 years

Class IA 58.22% 31.66% 22.31%
Russell Midcap Growth Index 51.29% 28.03% 18.96%
S&P 500 Index 21.04% 28.56% 18.21%

The fund's performance is compared to the Standard & Poor's 500 Index, an
unmanaged index of common stocks frequently used as a general measure of
U.S. stock market performance. The fund's performance is also compared to
the Russell Midcap Growth Index, an unmanaged index of common stocks of
midsized companies that are also included on the Russell 1000 Growth Index.
The Russell Midcap Growth Index has been added because Putnam Management
believes this index is an appropriate index against which to compare the
fund's performance.

What are the funds' main investment strategies and related risks?

We generally manage the funds in styles similar to certain funds in the
retail Putnam family of funds. However, the counterpart funds will not
have identical portfolios or investment results, since we may employ
different investment practices and invest in different securities for them.

Any investment carries with it some level of risk that generally reflects
its potential for reward. This section provides additional information on
the investment strategies and related risks that are identified for each
fund in "Fund summaries" at the beginning of this prospectus and discusses
investment strategies and related risks that are common to a number of the
funds. Not every investment strategy listed below applies to each fund.
Please refer to your fund's strategy in the Fund summaries section to
determine which risks apply to your fund.

Common stocks. Common stock represents an ownership interest in a
company. The value of a company's stock may fall as a result of factors
relating directly to that company, such as decisions made by its
management or lower demand for the company's products or services. A
stock's value may also fall because of factors affecting not just the
company, but companies in the same industry or in a number of different
industries, such as increases in production costs. The value of a
company's stock may also be affected by changes in financial markets that
are relatively unrelated to the company or its industry, such as changes in
interest rates or currency exchange rates. In addition, a company's stock
generally pays dividends only after the company invests in its own business
and makes required payments to holders of its bonds and other debt. For
this reason, the value of a company's stock will usually react more
strongly than its bonds and other debt to actual or perceived changes in
the company's financial condition or prospects. Stocks of smaller
companies may be more vulnerable to adverse developments than those of
larger companies.

We may purchase stock that trades at a higher multiple of current earnings
than other stocks. The value of such stocks may be more sensitive to
changes in current or expected earnings than the values of other stocks.
If our assessment of the prospects for the company's earnings growth is
wrong, or if our judgment of how other investors will value the company's
earnings growth is wrong, then the price of the company's stock may fall or
not approach the value that we have placed on it.

Companies whose stock we believe is undervalued by the market may have
experienced adverse business developments or may be subject to special
risks that have caused their stocks to be out of favor. If our assessment
of a company's prospects is wrong, or if other investors do not eventually
recognize the value of the company, then price of the company's stock may
fall or may not approach the value that we have placed on it.

We will consider, among other things, a company's financial strength,
competitive position in its industry, and projected future earnings, cash
flows and dividends when deciding whether to buy or sell stocks.

Smaller companies. We may invest in smaller companies. These companies,
which may have market capitalizations of less than $1 billion, are more
likely than larger companies to have limited product lines, markets or
financial resources, or to depend on a small, inexperienced management
group. Stocks of these companies often trade less frequently and in
limited volume, and their prices may fluctuate more than stocks of larger
companies. Stocks of smaller companies may therefore be more vulnerable
to adverse developments than those of larger companies.

Foreign investments. Each of the funds may invest in securities of foreign
issuers. Foreign investments involve certain special risks, including

* Unfavorable changes in currency exchange rates: Foreign investments are
typically issued and traded in foreign currencies. As a result, their
values may be affected by changes in exchange rates between foreign
currencies and the U.S. dollar.

* Political and economic developments: Foreign investments may be subject to
the risks of seizure by a foreign government, imposition of restrictions
on the exchange or export of foreign currency, and tax increases.

* Unreliable or untimely information: There may be less information publicly
available about a foreign company than about most U.S. companies, and
foreign companies are usually not subject to accounting, auditing and
financial reporting standards and practices as stringent as those in the
United States.

* Limited legal recourse: Legal remedies for investors may be more limited
than the remedies available in the United States.

* Limited markets: Certain foreign investments may be less liquid (harder to
buy and sell) and more volatile than U.S. investments, which means we may
at times be unable to sell these foreign investments at desirable prices.
For the same reason, we may at times find it difficult to value the
fund's foreign investments.

* Trading practices: Brokerage commissions and other fees are generally
higher for foreign investments than for U.S. investments. The procedures
and rules governing foreign transactions and custody may also involve
delays in payment, delivery or recovery of money or investments.

* Lower yield: Common stocks of foreign companies have historically offered
lower dividends than stocks of comparable U.S. companies. Foreign
withholding taxes may further reduce the amount of income available to
distribute to shareholders of the fund. The fund's yield is therefore
expected to be lower than yields of most funds that invest mainly in U.S.
companies.

* Sovereign issuers: The willingness and ability of sovereign issuers to pay
principal and interest on government securities depends on various economic
factors, including the issuer's balance of payments, overall debt level,
and cash flow from tax or other revenues.

For Putnam VT Income Fund, we may invest in U.S. dollar denominated
fixed-income securities of foreign issuers, including Yankee bonds.

For Putnam VT Money Market Fund, we may invest in money market instruments
of foreign issuers that are denominated in U.S. dollars.

The risks of foreign investments are typically increased in less developed
countries, which are sometimes referred to as emerging markets. For
example, political and economic structures in these countries may be
changing rapidly, which can cause instability. These countries are also
more likely to experience high levels of inflation, deflation or currency
devaluation, which could hurt their economies and securities markets. For
these and other reasons, investments in emerging markets are often
considered speculative.

Certain of these risks may also apply to some extent to U.S.-traded
investments that are denominated in foreign currencies, investments in U.S.
companies that are traded in foreign markets, or to investments in U.S.
companies that have significant foreign operations. Special U.S. tax
considerations may apply to the fund's foreign investments.

Fixed-income investments. Fixed-income securities, which typically pay an
unchanging rate of interest or dividends, include bonds and other debt.
Each of the funds may invest in fixed-income securities. The value of a
fixed-income investment may fall as a result of factors directly relating
to the issuer of the security, such as decisions made by its management or
a reduction in its credit rating. An investment's value may also fall
because of factors affecting not just the issuer, but other issuers, such
as increases in production costs. The value of an investment may also be
affected by general changes in financial market conditions, such as
changing interest rates or currency exchange rates.

We will consider, among other things, credit, interest rate and prepayment
risks as well as general market conditions when deciding whether to buy or
sell investments.

* Interest rate risk. The values of bonds and other debt usually rise and
fall in response to changes in interest rates. Declining interest rates
generally increase the value of existing debt instruments, and rising
interest rates generally decrease the value of existing debt instruments.
Changes in a debt instrument's value usually will not affect the amount
of interest income paid to the fund, but will affect the value of the
fund's shares. Interest rate risk is generally greater for investments
with longer maturities.

Some investments give the issuer the option to call, or redeem, these
investments before their maturity date. If an issuer "calls" its security
during a time of declining interest rates, we might have to reinvest the
proceeds in an investment offering a lower yield, and therefore might not
benefit from any increase in value as a result of declining interest rates.

"Premium investments" offer interest rates higher than prevailing market
rates. However, they involve a greater risk of loss, because their values
tend to decline over time. You may find it useful to compare the fund's
yield, which factors out the effect of premium investments, with its
current dividend rate, which does not factor out that effect.

For Putnam VT Money Market Fund, average portfolio maturity will not exceed
90 days and the fund may not hold an investment with more than 397 days
remaining to maturity. These short-term investments generally have lower
yields than longer-term investments. Some investments have an interest
rate that changes based on a market interest rate, and allow the holder to
demand payment of principal and accrued interest before the scheduled
maturity date. We measure the maturity of these obligations using the
relatively short period in which payment could be demanded. Because the
interest rate on these investments can change as market interest rates
change, these investments are unlikely to be able to lock in favorable
longer term interest rates.

* Credit risk. Investors normally expect to be compensated in proportion
to the risk they are assuming. Thus, debt of issuers with poor credit
usually offers higher yields than debt of issuers with more secure
credit. Higher-rated investments generally have lower-credit risk.

For Putnam VT Income Fund, we invest most of the fund's assets in
investment-grade investments. These are rated at least BBB or its
equivalent by a nationally recognized securities rating agency, or are
unrated investments we believe are of comparable quality. We may also
invest the fund's assets in non-investment-grade investments. However, we
may not invest in securities that are rated below B or the equivalent by
each agency or are unrated investments we believe are of comparable
quality. We will not necessarily sell an investment if its rating is
reduced after we buy it.

For Putnam VT The George Putnam Fund of Boston, we invest mostly in
investment-grade debt instruments. These are rated at least BBB or its
equivalent at the time of purchase by a nationally recognized securities
rating agency, or are unrated investments that we believe are of comparable
quality. We may invest in lower-rated instruments. However, we will not
invest in securities rated lower than B or its equivalent by each rating
agency rating the investment or unrated securities that we believe are of
comparable quality. We will not necessarily sell an investment if its
rating is reduced after we purchase it.

For Putnam VT High Yield Fund, we invest mostly in higher-yielding,
higher-risk debt investments that are rated below BBB or its equivalent at
the time of purchase by each nationally recognized securities rating agency
rating such investments, or are unrated investments that we believe are of
comparable quality.

For Putnam VT Diversified Income Fund, Putnam VT Global Asset Allocation
and Putnam VT Utilities Growth and Income Fund, we may invest up to 70%,
35% and 20%, respectively, of the fund's total assets in non-investment
grade securities using the investment criteria described above under Putnam
VT High Yield Fund.

For Putnam VT High Yield Fund and Putnam VT Diversified Income Fund, we may
invest up to 15% and 5%, respectively, of the fund's total assets in debt
investments rated below CCC or its equivalent, at the time of purchase, by
each agency rating such investments and unrated investments that we believe
are of comparable quality. We will not necessarily sell an investment if
its rating is reduced after we buy it.

Investments rated below BBB or its equivalent are known as "junk bonds."
This rating reflects a greater possibility that the issuers may be unable
to make timely payments of interest and principal and thus default. If
this happens, or is perceived as likely to happen, the values of those
investments will usually be more volatile and are likely to fall. A
default or expected default could also make it difficult for us to sell
the investments at prices approximating the values we had previously
placed on them. Lower-rated debt usually has a more limited market than
higher-rated debt, which may at times make it difficult for us to buy or
sell certain debt instruments or to establish their fair value. Credit
risk is generally greater for investments that are issued at less than
their face value and make payments of interest only at maturity rather than
at intervals during the life of the investment.

Credit ratings are based largely on the issuer's historical financial
condition and the rating agencies' investment analysis at the time of
rating. The rating assigned to any particular investment does not
necessarily reflect the issuer's current financial condition, and does not
reflect an assessment of an investment's volatility or liquidity.
Although we consider credit ratings in making investment decisions, we
perform our own investment analysis and do not rely only on ratings
assigned by the rating agencies. The fund depends more on our ability in
buying lower-rated debt than it does in buying investment-grade debt. We
may have to participate in legal proceedings or to take possession of and
manage assets that secure the issuer's obligations. This could increase
the fund's operating expenses and decrease its net asset value.

Although investment-grade investments generally have lower credit risk,
they may share some of the risks of lower-rated investments. U.S.
government investments generally have the least credit risk, but are not
completely free of credit risk. While some, such as U.S. Treasury
obligations and Ginnie Mae certificates, are backed by the full faith and
credit of the U.S. government, others are subject to varying degrees of
risk. These risk factors include the creditworthiness of the issuer and,
in the case of mortgage-backed securities, the ability of the underlying
borrowers to meet their obligations.

For Putnam VT Money Market Fund, we buy only high quality investments.

These are:

* rated in one of the two highest categories by at least two nationally
recognized rating services,

* rated by one rating service in one of the service's two highest
categories (if only one rating service has provided a rating), or

* unrated investments that we determine are of equivalent quality.

If an issuer of a note does not have the credit rating usually required by
the fund, another company may use its higher credit rating to back up the
credit of the issuer of the note by selling the issuer a letter of credit.
The main risk of investments backed by a letter of credit is that the
entity issuing the letter of credit will be unable to fulfill its
obligations to the fund.

Insurance. We have bought liability insurance that insures the fund against
a decrease in the value of its investments arising from the issuer's
default or bankruptcy. The insurance covers most of the fund's
investments, other than U.S. government securities. The insurance does not
guarantee or ensure that the fund will be able to maintain a stable net
asset value of $1.00 per share. The maximum total coverage for the fund is
$30 million, with a deductible for each loss of $1 million or 0.30% of the
fund's net assets, whichever is less. The $30 million maximum coverage is
shared with four other Putnam money market funds. Recovery under the
insurance is subject to certain conditions, including the condition that
the other Putnam money market funds have not previously exhausted the
insurance coverage, and the insurance might not be renewed when it expires.

* Prepayment risk. Traditional debt investments typically pay a fixed rate
of interest until maturity, when the entire principal amount is due. By
contrast, payments on mortgage-backed investments typically include both
interest and partial payment of principal. Principal may also be prepaid
voluntarily, or as a result of refinancing or foreclosure. We may have
to invest the proceeds from prepaid investments in other investments with
less attractive terms and yields. Compared to debt that cannot be prepaid,
mortgage-backed investments are less likely to increase in value during
periods of declining interest rates and have a higher risk of decline in
value during periods of rising interest rates. They may increase the
volatility of a fund. Some mortgage-backed investments receive only the
interest portion or the principal portion of payments on the underlying
mortgages. The yields and values of these investments are extremely
sensitive to changes in interest rates and in the rate of principal payments
on the underlying mortgages. The market for these investments may be
volatile and limited, which may make them difficult to buy or sell.

Money market instruments. These include certificates of deposit,
commercial paper, U.S. government debt and repurchase agreements, corporate
obligations and bankers acceptances.

For Putnam VT Money Market Fund, we buy bankers acceptances only if they
are issued by banks with deposits in excess of $2 billion (or the foreign
currency equivalent) at the close of the last calendar year. If the
Trustees change this minimum deposit requirement, shareholders would be
notified.

Illiquid securities. We may invest up to 15% of a fund's assets (10% for
Putnam VT Money Market Fund) in illiquid investments, which may be
considered speculative. Illiquid investments are investments that may be
difficult to sell. The sale of many of these investments is limited by
law. We may not be able to sell a fund's illiquid investments when we
consider it is desirable to do so or we may be able to sell them only at
less than their market value.

Derivatives. We may engage in a variety of transactions involving
derivatives, such as futures, options, warrants and swap contracts.
Derivatives are financial instruments whose value depends upon, or is
derived from, the value of something else, such as one or more underlying
investments, pools of investments, indexes or currencies. We may use
derivatives both for hedging and non-hedging purposes. For example, the
fund may use derivatives to increase or decrease its exposure to long- or
short-term interest rates (in the United States or abroad). However, we
may also choose not to use derivatives, based on our evaluation of market
conditions or the availability of suitable derivatives.

Derivatives involve special risks and may result in losses. The funds
depend on our ability to manage these sophisticated instruments. The
prices of derivatives may move in unexpected ways, especially in unusual
market conditions. Some derivatives are "leveraged" and therefore may
magnify or otherwise increase investment losses .

Other risks arise from the potential inability to terminate or sell
derivatives positions. A liquid secondary market may not always exist for
the fund's derivative positions at any time. In fact, many
over-the-counter instruments (investments not traded on an exchange) will
not be liquid. Over-the-counter instruments also involve the risk that the
other party to the derivative transaction will not meet its obligations .
For further information about the risks of derivatives, see the Trust's
statement of additional information (SAI).

Frequent trading. We may buy and sell investments relatively often,
which involves higher brokerage commissions and other expenses.

Other investments. In addition to the main investment strategies described
above, we may make other investments, which may be subject to other
risks as described in the SAI.

Alternative strategies. At times we may judge that market conditions make
pursuing a fund's usual investment strategies inconsistent with the best
interests of its shareholders. We then may temporarily use alternative
strategies that are mainly designed to limit losses. However, we may
choose not to use these strategies for a variety of reasons, even in very
volatile market conditions. These strategies may cause the affected fund
to miss out on investment opportunities, and may prevent the fund from
achieving its goal.

Changes in policies. The Trust's Trustees may change any of the funds'
goals, investment strategies and other policies without shareholder
approval, except as otherwise indicated.

Who manages the funds?

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):

Management
Putnam VT Fund Fees
- ------------------------------------------------------------------------
Putnam VT Asia Pacific Growth Fund 0.80%
- ------------------------------------------------------------------------
Putnam VT Diversified Income Fund 0.68%
- ------------------------------------------------------------------------
Putnam VT The George Putnam Fund of Boston 0.65%
- ------------------------------------------------------------------------
Putnam VT Global Asset Allocation 0.65%
- ------------------------------------------------------------------------
Putnam VT Global Growth Fund 0.61%
- ------------------------------------------------------------------------
Putnam VT Growth and Income Fund 0.46%
- ------------------------------------------------------------------------
Putnam VT Health Sciences Fund 0.70%
- ------------------------------------------------------------------------
Putnam VT High Yield Fund 0.65%
- ------------------------------------------------------------------------
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 1.08%
- ------------------------------------------------------------------------
Putnam VT Investors Fund 0.63%
- ------------------------------------------------------------------------
Putnam VT Money Market Fund 0.41%
- ------------------------------------------------------------------------
Putnam VT New Opportunities Fund 0.54%
- ------------------------------------------------------------------------
Putnam VT New Value Fund 0.70%
- ------------------------------------------------------------------------
Putnam VT OTC & Emerging Growth Fund* 0.53%
- ------------------------------------------------------------------------
Putnam VT Research Fund* 0.54%
- ------------------------------------------------------------------------
Putnam VT Utilities Growth and Income Fund 0.65%
- ------------------------------------------------------------------------
Putnam VT Vista Fund 0.65%
- ------------------------------------------------------------------------
Putnam VT Voyager Fund 0.53%
- ------------------------------------------------------------------------

* The management fees shown in the table reflect an expense limitation
then in effect or currently in effect. In the absence of an expense
limitation, management fees would have been:

Putnam VT OTC & Emerging Growth Fund 0.70%

Putnam VT Research Fund 0.65%

The following funds paid Putnam Management a quarterly management fee for
these services at the annual rate of:

Putnam VT American Government Income Fund: 0.65% of the first 500 million
of average net assets, 0.55% of the next 500 million, 0.50% of the next 500
million, 0.45% of the next 5 billion, 0.425% of the next 5 billion, 0.405%
of the next 5 billion, 0.39% of the next 5 billion, 0.38% of the next 5
billion, 0.37% of the next 5 billion, 0.36% of the next 5 billion, 0.35% of
the next 5 billion and 0.34% of any excess thereafter.

In order to limit expenses for Putnam VT American Government Income Fund,
Putnam Management has agreed to limit its compensation (and, to the extent
necessary, bear other expenses) through December 31, 2000 to the extent
that the expenses of the fund (exclusive of brokerage, interest, taxes and
extraordinary expenses, and payments under the fund's distribution plans)
would exceed an annual rate of 0.90% of the fund's average net assets. For
the purpose of determining any such limitation on Putnam Management's
compensation, expenses of the fund do not reflect the application of
commissions or cash management credits that may reduce designated fund
expenses.

Putnam VT Growth Opportunities Fund: 0.70% of the first 500 million of
average net assets, 0.60% of the next 500 million, 0.55% of the next 500
million, 0.50% of the next 5 billion, 0.475% of the next 5 billion,
0.455% of the next 5 billion, 0.44% of the next 5 billion, 0.43% of the
next 5 billion and 0.42% of any excess thereafter.

Putnam VT Small Cap Value Fund: 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 excess
thereafter.

The following officers and advisor teams of Putnam Management have primary
responsibility for the day-to-day management of the relevant fund's
portfolio. Each officer's length of service to the relevant fund and the
officer's experience as portfolio manager or investment analyst over at
least the last five years are shown.

Fund name Year Business experience (at least 5 years)
<S> <C> <C> <C>
Putnam VT American Government
Income Fund

Kevin M. Cronin 2000 1997-Present Putnam Management
Managing Director Prior to February 1997 MFS Investment Management

Michael Martino 2000 1994-Present Putnam Management
Managing Director

Putnam VT Asia Pacific Growth Fund

Paul Warren 1997 1997-Present Putnam Management
Senior Vice President Prior to May 1997 IDS Fund Management

Carmel Peters 1999 1997-Present Putnam Management
Senior Vice President Prior to May 1997 Wheelock Natwest Investment
Prior to February 1996 Management, Hong Kong
Rothschild Asset Management
Asia Pacific, Hong Kong

Putnam VT Diversified Income Fund

David L. Waldman 1998 1997-Present Putnam Management
Managing Director Prior to June 1997 Lazard Freres

The Core Fixed Income Team

Putnam VT The George Putnam Fund of Boston

David L. King 2000 1983-Present Putnam Management
Managing Director

Jeanne L. Mockard 2000 1990-Present Putnam Management
Senior Vice President

James M. Prusko 1998 1992-Present Putnam Management
Senior Vice President

The Core Fixed Income Team

Putnam VT Global Asset Allocation

The Global Asset Allocation Committee

Putnam VT Global Growth Fund

Robert J. Swift 1996 1995-Present Putnam Management
Managing Director Prior to August 1995 IAI International/Hill Samuel
Investment Advisors

Kelly A. Morgan 1997 1996-Present Putnam Management
Managing Director Prior to December 1996 Alliance Capital Management L.P.

Lisa H. Svensson 1998 1994-Present Putnam Management
Senior Vice President Prior to July 1994 Lord Abbett & Co.

Manuel Weiss 1998 1987-Present Putnam Management
Senior Vice President

Stephen P. Dexter 2000 1999-Present Putnam Management
Senior Vice President Prior to June 1999 Scudder Kemper Inc.

Putnam VT Growth and Income Fund

David L. King 1993 1983-Present Putnam Management
Managing Director

Hugh H. Mullin 1998 1986-Present Putnam Management
Senior Vice President

Sheldon N. Simon 1997 1984-Present Putnam Management
Senior Vice President

Putnam VT Growth Opportunities Fund

C. Beth Cotner 2000 1995-Present Putnam Management
Managing Director Prior to September 1995 Kemper Financial Services

Jeffery R. Lindsey 2000 1994-Present Putnam Management
Senior Vice President

David J. Santos 2000 1986-Present Putnam Management
Senior Vice President

Putnam VT Health Sciences Fund

Richard B. England 1998 1992-Present Putnam Management
Senior Vice President

David G. Carlson 1998 1992-Present Putnam Management
Senior Vice President

Margery C. Parker 1998 1997-Present Putnam Management
Senior Vice President Prior to December 1997 Keystone Investments

Putnam VT High Yield Fund

Krishna K. Memani 1999 1998-Present Putnam Management
Managing Director Prior to September 1998 Morgan Stanley & Co.

The Credit Team

Putnam VT Income Fund

James M. Prusko 2000 1992-Present Putnam Management
Senior Vice President

The Core Fixed Income Team

Putnam VT International Growth Fund

Justin M. Scott 1996 1988-Present Putnam Management
Managing Director

Omid Kamshad 1996 1996-Present Putnam Management
Managing Director Prior to January 1996 Lombard Odier International

Mark D. Pollard 1999 1990-Present Putnam Management
Managing Director

Paul C. Warren 1999 1997-Present Putnam Management
Senior Vice President Prior to May 1997 IDS Fund Management

Joshua L. Byrne 2000 1993-Present Putnam Management
Senior Vice President

Putnam VT International Growth and Income Fund

Deborah F. Kuenstner 1999 1997-Present Putnam Management
Managing Director Prior to May 1997 DuPont Pension Fund Investment

George Stairs 1999 1994-Present Putnam Management
Senior Vice President Prior to July 1994 Value Quest Ltd.

Putnam VT International New Opportunities Fund

Robert J. Swift 1996 1995-Present Putnam Management
Managing Director Prior to August 1995 IAI International/Hill
Samuel Investment Advisors

Carmel Peters 1999 1997-Present Putnam Management
Senior Vice President Prior to May 1997 Wheelock Natwest Investment
Management, Hong Kong
Prior to February 1996 Rothschild Asset Management
Asia Pacific, Hong Kong

Stephen P. Dexter 1999 1999-Present Putnam Management
Senior Vice President Prior to June 1999 Scudder Kemper Inc.

Putnam VT Investors Fund

C. Beth Cotner 1998 1995-Present Putnam Management
Senior Vice President Prior to September 1995 Kemper Financial Services

Richard B. England 1998 1992-Present Putnam Management
Senior Vice President

Manuel H. Weiss 1998 1987-Present Putnam Management
Senior Vice President

Putnam VT New Opportunities Fund

Daniel L. Miller 1994 1983-Present Putnam Management
Managing Director

Jeffrey R. Lindsey 1999 1994-Present Putnam Management
Senior Vice President

Kenneth Lang 1999 1997-Present Putnam Management
Vice President Prior to April 1997 Montgomery Securities

Putnam VT New Value Fund

David L. King 1996 1983-Present Putnam Management
Managing Director

Putnam VT OTC & Emerging Growth Fund

Steven L. Kirson 1998 1989-Present Putnam Management
Senior Vice President

Michael J. Mufson 1998 1993-Present Putnam Management
Senior Vice President

Putnam VT Research Fund

The Global Equity Research Team

Putnam VT Small Cap Value Fund

Edward T. Shadek, Jr. 1999 1997-Present Putnam Management
Managing Director Prior to March 1997 Newbold's Asset Management Co.

Jeffrey Netols 1999 1993-Present Putnam Management
Senior Vice President

Putnam VT Utilities Growth and Income Fund

Krishna K. Memani 1999 1998-Present Putnam Management
Managing Director Prior to September 1998 Morgan Stanley & Co.

Jeanne L. Mockard 1998 1990-Present Putnam Management
Senior Vice President

The Credit Team

Putnam VT Vista Fund

Eric Wetlaufer 1997 1997-Present Putnam Management
Managing Director Prior to November 1997 Cadence Capital Management

Anthony C. Santosus 1996 1985-Present Putnam Management
Senior Vice President

Margery C. Parker 1998 1997-Present Putnam Management
Senior Vice President Prior to December 1997 Keystone Investments

Dana Clark 1999 1987-Present Putnam Management
Vice President

Putnam VT Voyager Fund

Robert R. Beck 1995 1989-Present Putnam Management
Managing Director

Roland W. Gillis 1995 1995-Present Putnam Management
Managing Director Prior to March 1995 Keystone Custodian Funds, Inc.

Michael P. Stack 1997 1997-Present Putnam Management
Senior Vice President Prior to November 1997 Independence Investment
Associates, Inc.

Charles H. Swanberg 1994 1984-Present Putnam Management
Senior Vice President

Paul Marrkand 2000 1987-Present Putnam Management
Senior Vice President

</TABLE>

How to buy and sell fund shares

The Trust has an underwriting agreement relating to the funds with Putnam
Mutual Funds, One Post Office Square, Boston, Massachusetts 02109. Putnam
Mutual Funds presently offers shares of each fund of the Trust continuously
to separate accounts of various insurers. The underwriting agreement
presently provides that Putnam Mutual Funds accepts orders for shares at
net asset value and no sales commission or load is charged. Putnam Mutual
Funds may, at its expense, provide promotional incentives to dealers that
sell variable insurance products.

Shares are sold or redeemed at the net asset value per share next
determined after receipt of an order, except that, in the case of Putnam VT
Money Market Fund, purchases will not be affected until the next
determination of net asset value after federal funds have been made
available to the Trust. Orders for purchases or sales of shares of a fund
must be received by Putnam Mutual Funds before the close of regular trading
on the New York Stock Exchange in order to receive that day's net asset
value. No fee is charged to a separate account when it redeems fund
shares.

Please check with your insurance company to determine which funds are
available under your variable annuity contract or variable life insurance
policy. Certain funds may not be available in your state due to various
insurance regulations. Inclusion in this prospectus of a fund that is not
available in your state is not to be considered a solicitation. This
prospectus should be read in conjunction with the prospectus of the
separate account of the specific insurance product which accompanies this
prospectus.

The funds currently do not foresee any disadvantages to policyowners
arising out of the fact that the funds offer their shares to separate
accounts of various insurance companies to serve as the investment medium
for their variable products. Nevertheless, the Trustees intend to monitor
events in order to identify any material irreconcilable conflicts which may
possibly arise, and to determine what action, if any, should be taken in
response to such conflicts. If such a conflict were to occur, one or more
insurance companies' separate accounts might be required to withdraw their
investments in one or more funds and shares of another fund may be
substituted. This might force a fund to sell portfolio securities at
disadvantageous prices. In addition, the Trustees may refuse to sell
shares of any fund to any separate account or may suspend or terminate the
offering of shares of any fund if such action is required by law or
regulatory authority or is in the best interests of the shareholders of the
fund. Under unusual circumstances, the Trust may suspend repurchases or
postpone payment for up to seven days or longer, as permitted by federal
securities law.

How do the funds price their shares?

The price of a fund's shares is based on its net asset value (NAV). The
NAV per share of each class equals the total value of its assets, less its
liabilities, divided by the number of its outstanding shares. Shares are
only valued as of the close of regular trading on the New York Stock
Exchange each day the exchange is open.

Each fund (other than Putnam VT Money Market Fund) values its investments
for which market quotations are readily available at market value. It
values short-term investments that will mature within 60 days at amortized
cost, which approximates market value. It values all other investments and
assets at their fair value. Putnam VT Money Market Fund values all of its
investments at amortized cost.

Each fund translates prices for its investments quoted in foreign
currencies into U.S. dollars at current exchange rates. As a result,
changes in the value of those currencies in relation to the U.S. dollar may
affect each fund's NAV. Because foreign markets may be open at different
times than the New York Stock Exchange, the value of each fund's shares may
change on days when shareholders are not able to buy or sell them. If
events materially affecting the values of each fund's foreign investments
(other than Putnam VT Money Market Fund) occur between the close of foreign
markets and the close of regular trading on the New York Stock Exchange,
these investments will be valued at their fair value.

Fund distributions and taxes

Each fund (other than Putnam VT Money Market Fund) will distribute any net
investment income and net realized capital gains at least annually. Both
types of distributions will be made in shares of such funds unless an
election is made on behalf of a separate account to receive some or all of
the distributions in cash. Putnam VT Money Market Fund will declare a
dividend of its net investment income daily and distribute such dividend
monthly. Each month's distributions will be paid on the first business day
of the next month. Since the net income of Putnam VT Money Market Fund is
declared as a dividend each time it is determined, the net asset value per
share of the fund remains at $1.00 immediately after each determination and
dividend declaration.

Distributions are reinvested without a sales charge, using the net asset
value determined on the ex-dividend date, except that with respect to
Putnam VT Money Market Fund, distributions are reinvested using the net
asset value determined on the day following the distribution payment date.
Distributions on each share are determined in the same manner and are paid
in the same amount, regardless of class, except for such differences as are
attributable to differential class expenses.

Generally, owners of variable annuity and variable life contracts are not
taxed currently on income or gains realized with respect to such contracts.
However, some distributions from such contracts may be taxable at ordinary
income tax rates. In addition, distributions made to an owner who is
younger than 59 1/2 may be subject to a 10% penalty tax. Investors should
ask their own tax advisors for more information on their own tax situation,
including possible foreign, state or local taxes.

In order for investors to receive the favorable tax treatment available to
holders of variable annuity and variable life contracts, the separate
accounts underlying such contracts, as well as the funds in which such
accounts invest, must meet certain diversification requirements. Each fund
intends to comply with these requirements. If a fund does not meet such
requirements, income allocable to the contracts would be taxable currently
to the holders of such contracts.

Each fund intends to qualify as a "regulated investment company" for
federal income tax purposes and to meet all other requirements necessary
for it to be relieved of federal income taxes on income and gains it
distributes to the separate accounts. For information concerning federal
income tax consequences for the holders of variable annuity contracts and
variable life insurance policies, contract holders should consult the
prospectus of the applicable separate account.

Fund investments in foreign securities may be subject to withholding taxes
at the source on dividend or interest payments. In that case, a fund's
yield on those securities would be decreased.

A fund's investments in certain debt obligations may cause the fund to
recognize taxable income in excess of the cash generated by such
obligations. Thus, the fund could be required at times to liquidate other
investments in order to satisfy its distribution requirements.

Financial highlights

The financial highlights table is intended to help you understand the
funds' recent financial performance. Certain information reflects
financial results for a single fund share. The total returns represent the
rate that an investor would have earned or lost on an investment in the
fund, assuming reinvestment of all dividends and distributions. This
information has been derived from each fund's financial statements, which
have been audited and reported on by PricewaterhouseCoopers LLP. Its
report and the fund's financial statements are included in the funds'
annual report to shareholders, which is available upon request.

Financial Highlights

Investment Operations Less Distributions:

Net From
Net Asset Net Realized and Total From In Excess Net In Excess of
Value, Investment Unrealized from Net of Net Realized Net Realized
Year Beginning Income Gain (Loss) on Investment Investment Investment Gain on Gain on
ended of Period (Loss) Investments operations Income Income Investments Investments
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Putnam VT Asia Pacific Growth Fund

1999 $8.33 $(.01)(a) $8.97 $8.96 $-- $-- $-- $--
1998 9.20 .08(a) (.56) (.48) (.38) -- -- --
1997 11.01 .07 (1.66) (1.59) (.22) -- -- --
1996 10.23 .05 .88 .93 (.15) -- -- --
1995** 10.00 .06(a)(b) .17 .23 -- -- -- --

Putnam VT Diversified Income Fund

1999 $10.49 $.80(a) $(.63) $.17 $(.74) $-- $-- $--
1998 11.31 .86(a) (.99) (.13) (.48) -- (.21) --
1997 11.27 .82(a) (.05) .77 (.63) -- (.10) --
1996 11.03 .80(a) .11 .91 (.67) -- -- --
1995 9.74 .71 1.09 1.80 (.51) -- -- --

Putnam VT The George Putnam Fund of Boston

1999 $10.28 $.32(a) $(.36) $(.04) $(.23) $-- $(.02) $--
1998***** 10.00 .18(a)(b) .19 .37 (.09) -- -- --

Putnam VT Global Asset Allocation Fund

1999 $18.94 $.41(a) $1.69 $2.10 $(.38) $-- $(1.06) $--
1998 18.76 .46(a) 2.00 2.46 (.43) -- (1.85) --
1997 17.25 .50 2.63 3.13 (.60) -- (1.02) --
1996 16.15 .43 1.94 2.37 (.44) -- (.83) --
1995 13.19 .47 2.74 3.21 (.25) -- -- --

Putnam VT Global Growth Fund

1999 $20.28 $(.02)(a) $12.09 $12.07 $(.09) $-- $(1.77) $--
1998 18.34 .05(a) 5.01 5.06 (.52) -- (2.60) --
1997 16.88 .13 2.18 2.31 (.41) -- (.44) --
1996 15.18 .17 2.35 2.52 (.25) -- (.57) --
1995 13.48 .20 1.85 2.05 (.11) -- (.24) --

Putnam VT Growth and Income Fund

1999 $28.77 $.47(a) $0.01 $.48 $(.41) $-- $(2.04) $--
1998 28.32 .44(a) 3.77 4.21 (.50) -- (3.26) --
1997 24.56 .48 5.07 5.55 (.52) -- (1.27) --
1996 21.47 .65(a) 3.84 4.49 (.51) -- (.89) --
1995 16.44 .53 5.31 5.84 (.51) -- (.30) --

Putnam VT Health Sciences Fund

1999 $10.94 $.01(a) $(.44) $(.43) $(.01) $-- $-- $--
1998***** 10.00 .01(a)(b) .94 .95 (.01) -- -- --

Putnam VT High Yield Fund

1999 $11.70 $1.13(a) $(.48) $.65 $(1.26) $-- $-- $--
1998 13.62 1.31(a) (1.98) (.67) (1.08) -- (.17) --
1997 12.96 1.06 .65 1.71 (.94) -- (.11) --
1996 12.37 1.18(a) .32 1.50 (.91) -- -- --
1995 11.46 .91 1.05 1.96 (1.05) -- -- --

Putnam VT Income Fund

1999 $13.73 $.78(a) $(1.05) $(.27) $(.73) $-- $(.21) $--
1998 13.42 .82(a) .24 1.06 (.73) (.02) -- --
1997 13.21 .88 .18 1.06 (.85) -- -- --
1996 13.74 .81 (.52) .29 (.82) -- -- --
1995 12.22 .81 1.56 2.37 (.85) -- -- --

Putnam VT International Growth Fund

1999 $13.52 $.08(a) $8.06 $8.14 $-- $-- $-- $--
1998 11.43 .11(a) 2.03 2.14 (.04) -- -- --
1997*** 10.00 .05(b) 1.56 1.61 (.05) (.02) (.04) (.06)

Putnam VT International Growth and Income Fund

1999 $12.24 $.21(a) $2.80 $3.01 $-- $-- $-- $--
1998 11.53 .23(a) 1.06 1.29 (.11) -- (.22) (.19)
1997*** 10.00 .07 1.87 1.94 (.08) (.05) (.28) --

Putnam VT International New Opportunities Fund

1999 $11.49 $(.05)(a) $11.88 $11.83 $(.01) $-- $-- $--
1998 9.96 .04(a)(b) 1.59 1.55 (.02) -- -- --
1997*** 10.00 .01(b) (.02) (.01) (.01) (.02) -- --

Putnam VT Investors Fund

1999 $11.65 $.01(a) $3.50 $3.51 $-- $-- $-- $--
1998***** 10.00 .02(a)(b) 1.65 1.67 (.01) -- -- --

Putnam VT Money Market Fund

1999 $1.00 $.0476(a) $-- $.0476 $(.0476) $-- $-- $--
1998 1.00 .0510 -- .0510 (.0510) -- -- --
1997 1.00 .0509 -- .0509 (.0509) -- -- --
1996 1.00 .0497 -- .0497 (.0497) -- -- --
1995 1.00 .0533 -- .0533 (.0533) -- -- --

Investment Operations Less Distributions:

Investment Operations Less Distributions:

1999 $26.06 $(.08)(a) $17.93 $17.85 $-- $-- $(.37) $--
1998 21.23 (.04) 5.19 5.15 -- -- (.32) --
1997 17.22 --(e) 4.01 4.01 -- -- -- --
1996 15.63 (.01) 1.60 1.59 -- -- -- --
1995 10.82 -- 4.84 4.84 -- -- (.02) --

Putnam VT New Value Fund

1999 $12.03 $.18(a) $(.14) $.04 $--(e) $-- $(.21) $--
1998 11.76 .16(a) .57 .73 (.23) -- (.23) --
1997*** 10.00 .18(a) 1.58 1.76 -- -- -- --

Putnam VT OTC & Emerging Growth Fund

1999 $10.09 $(.08)(a)(b) $12.84 $12.76 $-- $-- $(.06) $--
1998***** 10.00 (.01)(a)(b) .10 .09 -- -- -- --

Putnam VT Research Fund

1999 $11.93 $.05(a)(b) $3.20 $3.25 $(.03) $-- $(.46) $--
1998******* 10.00 .02(a)(b) 1.93 1.95 (.01) -- (.01) --

Putnam VT Small Cap Value Fund

1999******* $10.00 $(.02)(a) $.37 $.35 $-- $-- $-- $(.03)

Putnam VT Utilities Growth and Income Fund

1999 $18.19 $.52(a) $(.72) $(.20) $(.50) $-- $(.52) $--
1998 17.14 .54(a) 1.90 2.44 (.51) -- (.88) --
1997 14.80 .53 3.11 3.64 (.55) -- (.75) --
1996 13.28 .54 1.49 2.03 (.51) -- -- --
1995 10.68 .53 2.65 3.18 (.58) -- -- --

Putnam VT Vista Fund

1999 $14.72 $(.05)(a) $7.64 $7.59 $-- $-- $(1.63) $--
1998 12.32 (.02)(a) 2.42 2.40 -- -- -- --
1997*** 10.00 -- (e) 2.32 2.32 -- (e) -- -- --

Putnam VT Voyager Fund

1999 $45.85 $.03(a) $24.59 $24.62 $(.05) $-- $(4.17) $--
1998 39.08 .05(a) 9.26 9.31 (.10) -- (2.44) --
1997 32.53 .10 8.01 8.11 (.07) -- (1.49) --
1996 30.50 .09 3.75 3.84 (.13) -- (1.68) --
1995 22.20 .10 8.76 8.86 (.07) -- (.49) --

</TABLE>

Putnam VT Asia Pacific Growth Fund

1999 $-- $-- $17.29 107.56 $250,986 1.13 (.09) 145.51
1998 (.01) (.39) 8.33 (5.48) 90,667 1.12 1.01 136.49
1997 -- (.22) 9.20 (14.66) 112,902 1.07 .70 102.92
1996 -- (.15) 11.01 9.10 130,548 1.23 .84 66.10
1995*** -- -- 10.23 2.30* 25,045 .81(b)* .72(b)* 67.72*

Putnam VT Diversified Income Fund

1999 $-- $(.74) $9.92 1.66 $623,737 .78 7.86 117.02
1998 -- (.69) 10.49 (1.37) 669,053 .78 7.94 186.80
1997 -- (.73) 11.31 7.38 608,148 .80 7.43 282.56
1996 -- (.67) 11.27 8.81 494,811 .83 7.45 235.53
1995 -- (.51) 11.03 19.13 303,721 .85 7.85 297.17

Putnam VT The George Putnam Fund of Boston

1999 $(.01) $(.26) $9.98 (0.36) $276,553 .83 3.04 173.41
1998***** -- (.09) 10.28 3.69* 113,202 .57(b)* 1.84(b)* 99.85*

Putnam VT Global Asset Allocation Fund

1999 $-- $(1.44) $19.60 11.85 $1,001,087 .77 2.22 149.82
1998 -- (2.28) 18.94 13.47 1,020,354 .78 2.54 133.80
1997 -- (1.62) 18.76 19.67 956,532 .77 3.01 181.05
1996 -- (1.27) 17.25 15.62 747,734 .83 3.08 165.03
1995 -- (.25) 16.15 24.71 535,666 .84 3.31 150.88

Putnam VT Global Growth Fund

1999 $-- $(1.86) $30.49 65.00 $3,090,073 .73 (.09) 154.88
1998 -- (3.12) 20.28 29.71 1,987,094 .72 .26 164.56
1997 -- (.85) 18.34 14.33 1,611,503 .75 .77 158.37
1996 -- (.82) 16.88 17.20 1,344,887 .76 1.25 79.18
1995 -- (.35) 15.18 15.67 831,593 .75 1.49 82.53

Putnam VT Growth and Income Fund

1999 $-- $(2.45) $26.80 1.59 $9,567,077 .50 1.66 53.68
1998 -- (3.76) 28.77 15.42 9,948,386 .50 1.59 63.62
1997 -- (1.79) 28.32 24.15 8,337,334 .51 2.08 64.96
1996 -- (1.40) 24.56 21.92 5,679,100 .54 2.90 39.57
1995 -- (.81) 21.47 36.71 3,312,306 .57 3.34 50.87

1999 $-- $(.01) $10.50 (3.93) $218,848 .83 .14 82.45
1998***** --(e) (.01) 10.94 9.51* 134,436 .61(b)* .14(b)* 39.68*

Putnam High Yield Fund

1999 $-- $(1.26) $11.09 5.92 $964,590 .72 10.18 52.96
1998 -- (1.25) 11.70 (5.86) 1,032,892 .71 10.31 52.00
1997 -- (1.05) 13.62 14.34 1,025,298 .72 9.26 84.61
1996 -- (.91) 12.96 12.81 769,918 .76 9.57 62.72
1995 -- (1.05) 12.37 18.32 498,467 .79 9.42 69.78

Putnam VT Income Fund

1999 $-- $(.94) $12.52 (2.07) $935,800 .67 6.07 220.90
1998 -- (.75) 13.73 8.25 1,000,161 .67 6.13 233.04
1997 -- (.85) 13.42 8.64 789,540 .69 6.58 194.29
1996 -- (.82) 13.21 2.42 778,924 .69 6.48 142.49
1995 -- (.85) 13.74 20.44 747,024 .70 6.22 149.18

Putnam VT International Growth Fund

1999 $-- $-- $21.66 60.21 $627,368 1.02 .51 107.38
1998 (.01) (.05) 13.52 18.69 317,602 1.07 .84 98.31
1997*** (.01) (.18) 11.43 16.13 150,884 1.20(b) .79(b) 75.18

Putnam VT International Growth and Income Fund

1999 $-- $-- $15.25 24.59 $387,504 .98 1.50 92.27
1998 (.06) (.58) 12.24 11.28 305,047 .99 1.86 62.61
1997*** -- (.41) 11.53 19.43 206,598 1.12 1.11 53.20

Putnam VT International New Opportunities Fund

1999 $-- $(.01) $23.31 102.96 $330,982 1.41 (.36) 196.53
1998 -- (.02) 11.49 15.58 135,451 1.60(b) (.36)(b) 157.72
1997*** -- (.03) 9.96 (.10) 107,000 1.60(b) .09(b) 131.89

Putnam VT Investors Fund

1999 $-- $-- $15.16 30.13 $867,151 .71 .05 65.59
1998***** (.01) (.02) 11.65 16.66* 243,296 .57(b)* .l9(b)* 42.97*

Putnam VT Money Market Fund

1999 $-- $(.0476) $1.00 4.86 $823,013 .49 4.77 --
1998 -- (.0510) 1.00 5.19 595,158 .53 5.04 --
1997 -- (.0509) 1.00 5.22 405,577 .54 5.10 --
1996 -- (.0497) 1.00 5.08 437,132 .53 4.93 --
1995 -- (.0533) 1.00 5.46 263,213 .57 5.43 --

Putnam VT New Value Fund

1999 $-- $(.21) $11.86 .27 $249,092 .80 1.40 98.21
1998 -- (.46) 12.03 6.26 255,754 .81 1.34 130.96
1997*** -- -- 11.76 17.60 195,391 .85 1.59 64.15

Putnam VT OTC & Emerging Growth Fund

1999 $-- $(.06) $22.79 126.52 $207,003 .90(b) (.55)(b) 127.98
1998****** --(e) -- 10.09 .94* 28,059 .60(b)* (.16)(b)* 59.93*

Putnam VT Research Fund

1999 $-- $(.49) $14.69 27.58 $134,115 .85(b) .34(b) 169.16
1998****** -- (.02) 11.93 19.51* 22,626 .22(b)* .19(b)* 19.76*

Putnam Small Cap Value Fund

1999******* $(.01) $(.04) $10.31 3.47* $12,298 1.29* (.24)* 48.24*

Putnam VT Utilities Growth and Income Fund

1999 $-- $(1.02) $16.97 (.66) $945,581 .71 3.02 26.16
1998 -- (1.39) 18.19 14.92 1,015,327 .72 3.19 24.77
1997 -- (1.30) 17.14 27.10 822,257 .74 3.63 42.46
1996 -- (.51) 14.80 15.80 657,429 .73 4.22 61.94
1995 -- (.58) 13.28 31.08 530,461 .68 4.72 60.33

Putnam Vista Fund

1999 $-- $(1.63) $20.68 52.90 $542,491 .75 (.29) 133.32
1998 -- -- 14.72 19.48 311,612 .77 (.12) 116.48
1998*** --(e) -- 12.32 23.21 170,660 .87 -- 75.43

Putnam VT Voyager Fund

1999 $-- $(4.22) $66.25 58.22 $9,130,197 .57 .05 85.13
1998 -- (2.54) 45.85 24.36 5,803,073 .58 .14 62.99
1997 -- (1.56) 39.08 26.51 4,538,535 .59 .30 82.00
1996 -- (1.81) 32.53 12.97 3,281,490 .63 .36 63.87
1995 -- (.56) 30.50 40.67 2,000,232 .68 .49 57.51

* Not annualized.

** For the period May 1, 1995 (commencement of operations) to December 31, 1995.

*** For the period January 2, 1997 (commencement of operations) to December 31, 1997.

**** For the period April 6, 1998 (commencement of operations) to December 31, 1998.

***** For the period April 30, 1998 (commencement of operations) to December 31, 1998.

****** For the period September 30, 1998 (commencement of operations) to December 31, 1998.

******* For the period April 30, 1999 (commencement of operations) to December 31, 1999.

(a) Per share net investment income has been determined on the basis of the weighted average number of shares outstanding
during the period.

(b) Reflects an expense limitation in effect during the period. As a result of such limitation, expenses of Putnam VT Asia
Pacific Growth Fund for the period ended 1995 reflect a reduction of approximately $0.03 per share, expenses of Putnam
VT The George Putnam Fund of Boston for the period ended 1998 reflect a reduction of approximately $0.03 per share,
expenses of Putnam VT Health Sciences Fund for the period ended 1998 reflect a reduction of approximately $0.01 per
share, expenses of Putnam VT International Growth Fund for the period ended 1997 reflect a reduction of approximately
$0.01 per share, expenses of Putnam VT International New Opportunities Fund for the period ended 1997 reflect a
reduction of approximately $0.02 per share and for the period ended 1998 reflect a reduction of approximately less
than $0.01 per share, expenses of Putnam VT Investors Fund for the period ended 1998 reflect a reduction of
approximately less than $0.01 per share , expenses of Putnam VT OTC & Emerging Markets Fund for the periods ended
1999 and 1998 reflect a reduction of approximately $0.02 and $0.06, respectively, per share and expenses of Putnam VT
Research Fund for the periods ended 1999 and 1998 reflect a reduction of approximately $0.01 and $0.03, respectively,
per share.

(d) Includes amounts paid through expense offset and brokerage service arrangements.

(e) Net investment income, distributions from net investment income and returns of capital were less than 0.01 per share.

</TABLE>

For more information
about the funds of Putnam Variable Trust

The Trust's statement of additional information (SAI) and annual and
semi--annual reports to shareholders include additional information about
the funds. The SAI, and the auditor's report and financial statements
included in the Trust's most recent annual report to the funds'
shareholders, are incorporated by reference into this prospectus, which
means they are part of this prospectus for legal purposes. The Trust's
annual report discusses the market conditions and investment strategies
that significantly affected the funds' performance during the funds' last
fiscal year. You may get free copies of these materials, request other
information about the funds and other Putnam funds, or make shareholder
inquiries, by contacting your financial advisor, by visiting Putnam's Web
site, or by calling Putnam toll-free at 1-800-225-1581.

You may review and copy information about the funds, including the Trust's
SAI, at the Securities and Exchange Commission's public reference room in
Washington, D.C. You may call the Commission at 1- 202-942-8090 for
information about the operation of the public reference room. You may also
access reports and other information about the fund on the EDGAR Database
on the Commission's Internet site at http://www.sec.gov. You may get
copies of this information, with payment of a duplication fee, by
electronic request at the following E-mail address: [email protected]. or
by writing the Commission's Public Reference Section , Washington, D.C.
20549- 0102. You may need to refer to the fund's file number.

P U T N A M I N V E S T M E N T S

One Post Office Square
Boston, Massachusetts 02109

1-800- 225-1581

Address correspondence to
Putnam Investor Services

P.O. Box 989

Boston, Massachusetts 02103

www.putnaminv.com

File No. 811-5346

Prospectus

April 30, 2000

Putnam Variable Trust

Class IA Shares

Growth Funds
Putnam VT New Opportunities Fund

This prospectus explains what you should know about Putnam VT New
Opportunities Fund, one of the funds of Putnam Variable Trust, which offers
shares of beneifical interest in separate investment portfolios for
purchase by separate accounts of various insurance companies.

Putnam Investment Management, Inc. (Putnam Management), which has managed
mutual funds since 1937, manages the fund. These securities have not been
approved or disapproved by the Securities and Exchange Commission nor has
the Commission passed upon the accuracy or adequacy of this prospectus.
Any statement to the contrary is a crime.

CONTENTS

2 Fund summaries (including Goal, Main investment strategies, Main risks
and Performance Information)

3 What are the funds' main investment strategies and related risks?

4 Who manages the funds?

5 How to buy and sell fund shares

5 How do the funds price their shares?

5 Fund distributions and taxes

7 Financial highlights

Fund summary

The following summary identifies the fund's goal, main investment
strategies and the main risks that could adversely affect the value of the
fund's shares and the total return on your investment. The summary also
contains performance information that provides some indication of the
fund's risks. The chart contained in the summary shows year-to-year
changes in the performance of the fund's class IA shares. A table
following the chart compares the fund's performance to that of broad
measures of market performance. Of course, the fund's past performance is
not necessarily an indication of future performance. None of the
performance information reflects the impact of insurance-related charges or
expenses. If it did, performance would be less than that shown. Please
refer to the prospectus for your insurance contract for information about
those charges and performance data reflecting those charges and expenses.

A more detailed description of the fund, including the risks associated
with investing in the fund, can be found further back in this prospectus.
Please be sure to read this additional information before you invest.

You can lose money by investing in the fund. The fund may not achieve its
goal, and it is not intended as a complete investment program. An
investment in the fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.

PUTNAM VT NEW OPPORTUNITIES FUND

GOAL

The fund seeks long-term capital appreciation.

MAIN INVESTMENT STRATEGIES -- GROWTH STOCKS

MAIN RISKS

* The risk that the stock price of one or more of the companies in the fund's
portfolio will fall, or will fail to rise. Many factors can adversely
affect a stock's performance, including both general financial market
conditions and factors related to a specific company or industry. This risk
is generally greater for small and midsized companies, which tend to be more
vulnerable to adverse developments.

* The risk of investing in a limited group of market sectors. The
vulnerability of the fund to factors affecting the sectors chosen may be
significantly greater than that of a fund that invests in a broader range of
sectors and may result in greater fund losses and volatility.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: vertical bar chart CALENDAR YEAR TOTAL RETURNS FOR CLASS IA
SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES

1995 44.87%
1996 10.17%
1997 23.29%
1998 24.38%

1999 69.35%

Average annual total returns (for periods ending 12/31/99)

Past Past Since
1 year 5 years Inception
(5/2/94)

Class IA 69.35% 32.89% 30.36%
Russell Midcap Growth Index 18.23% 21.86% 24.61%
S&P 500 Index 21.04% 28.56% 25.66%

What are the fund's main investment strategies and related risks?

We generally manage the fund in a style similar to the Putnam New
Opportunities Fund we also manage and whose shares are generally offered
to the public. Putnam New Opportunities Fund, however, employs different
investment practices and may invest in securities different from those in
which Putnam VT New Opportunities Fund invests, and consequently the two
funds will not have identical portfolios or experience identical investment
results. Any investment carries with it some level of risk that generally
reflects its potential for reward.

Foreign investments. The fund may invest in securities of foreign issuers.
Foreign investments involve certain special risks, including

* Political and economic developments: Foreign investments may be subject
to the risks of seizure by a foreign government, imposition of
restrictions on the exchange or export of foreign currency, and tax
increases.

* Limited legal recourse: Legal remedies for investors may be more limited
than the remedies available in the United States.

* Trading practices: Brokerage commissions and other fees are generally higher
for foreign investments than for U.S. investments. The procedures and rules
governing foreign transactions and custody may also involve delays in
payment, delivery or recovery of money or investments.

Other investments. In addition to the main investment strategies described
above, we may make other investments, such as investments in preferred
stocks, convertible securities, debt securities and derivatives, which may
be subject to other risks as described in the statement of additional
information (SAI.)

Alternative strategies. At times we may judge that market conditions make
pursuing the fund's usual investment strategies inconsistent with the best
interests of its shareholders. We then may temporarily use alternative
strategies that are mainly designed to limit losses. However, we may
choose not to use these strategies for a variety of reasons, even in very
volatile market conditions. These strategies may cause the fund to miss
out on investment opportunities, and may prevent the fund from achieving
its goal.

Changes in policies. The Trust's Trustees may change any of the fund's
goal, investment strategies and other policies without shareholder
approval, except as otherwise indicated.

Who manages the fund?

The Trust's Trustees oversee the general conduct of the fund's business.
The Trustees have retained Putnam Management to be the fund's investment
manager, responsible for making investment decisions for the fund and
managing the fund's other affairs and business. The fund pays Putnam
Management a quarterly management fee for these services based on the
fund's average net assets. The fund paid Putnam Management a management
fee of 0.54% of average net assets for the fund's last fiscal year. Putnam
Management's address is One Post Office Square, Boston, MA 02109.

The following officers of Putnam Management have primary responsibility
for the day-to-day management of the fund's portfolio. Each officer's
length of service to the fund and the officer's experience as portfolio
manager or investment analyst over at least the last five years are shown.

Fund name Year Business experience (at least 5 years)
<S> <C> <C> <C>
Putnam VT New Opportunities Fund
Daniel L. Miller 1994 1983-Present Putnam Management
Managing Director

Jeffrey R. Lindsey 1999 1994-Present Putnam Management
Senior Vice President

Kenneth Lang 1999 1997-Present Putnam Management
Vice President Prior to April 1997 Montgomery Securities

</TABLE>

How to buy and sell fund shares

The Trust has an underwriting agreement relating to the fund with Putnam
Mutual Funds, One Post Office Square, Boston, Massachusetts 02109. Putnam
Mutual Funds presently offers shares of the fund continuously to separate
accounts of various insurers. The underwriting agreement presently
provides that Putnam Mutual Funds accepts orders for shares at net asset
value and no sales commission or load is charged. Putnam Mutual Funds may,
at its expense, provide promotional incentives to dealers that sell
variable insurance products.

Shares are sold or redeemed at the net asset value per share next
determined after receipt of an order. Orders for purchases or sales of
shares of the fund must be received by Putnam Mutual Funds before the close
of regular trading on the New York Stock Exchange in order to receive that
day's net asset value. No fee is charged to a separate account when it
redeems fund shares.

The fund currently does not foresee any disadvantages to policyowners
arising out of the fact that the fund offers its shares to separate
accounts of various insurance companies to serve as the investment medium
for their variable products. Nevertheless, the Trustees intend to monitor
events in order to identify any material irreconcilable conflicts which may
possibly arise, and to determine what action, if any, should be taken in
response to such conflicts. If such a conflict were to occur, one or more
insurance companies' separate accounts might be required to withdraw their
investments in the fund and shares of another fund offered by the Trust may
be substituted. This might force the fund to sell portfolio securities at
disadvantageous prices. In addition, the Trustees may refuse to sell
shares of the fund to any separate account or may suspend or terminate the
offering of shares of the fund if such action is required by law or
regulatory authority or is in the best interests of the shareholders of the
fund.

Under unusual circumstances, the Trust may suspend repurchases or postpone
payment for up to seven days or longer, as permitted by federal securities
law.

How does the fund price its shares?

The price of the fund's shares is based on its net asset value (NAV). The
NAV per share of each class of shares equals the total value of its assets,
less its liabilities, divided by the number of its outstanding shares.
Shares are only valued as of the close of regular trading on the New York
Stock Exchange each day the exchange is open.

The fund values its investments for which market quotations are readily
available at market value. It values short-term investments that will
mature within 60 days at amortized cost, which approximates market value.
It values all other investments and assets at their fair value.

The fund translates prices for its investments quoted in foreign currencies
into U.S. dollars at current exchange rates. As a result, changes in the
value of those currencies in relation to the U.S. dollar may affect the
fund's NAV. Because foreign markets may be open at different times than
the New York Stock Exchange, the value of the fund's shares may change on
days when shareholders are not able to buy or sell them. If events
materially affecting the values of the fund's foreign investments occur
between the close of foreign markets and the close of regular trading on
the New York Stock Exchange, these investments will be valued at their fair
value.

Fund distributions and taxes

The fund will distribute any net investment income and net realized capital
gains at least annually. Both types of distributions will be made in
shares of the fund unless an election is made on behalf of a separate
account to receive some or all of the distributions in cash.

Distributions are reinvested without a sales charge, using the net asset
value determined on the ex-dividend date. Distributions on each share are
determined in the same manner and are paid in the same amount, regardless
of class, except for such differences as are attributable to differential
class expenses.

In order for investors to receive the favorable tax treatment available to
holders of variable annuity and variable life contracts, the separate
accounts underlying such contracts, as well as the funds in which such
accounts invest, must meet certain diversification requirements. The fund
intends to comply with these requirements. If the fund does not meet such
requirements, income allocable to the contracts would be taxable currently
to the holders of such contracts.

The fund intends to qualify as a "regulated investment company" for federal
income tax purposes and to meet all other requirements necessary for it to
be relieved of federal income taxes on income and gains it distributes to
the separate accounts. For information concerning federal income tax
consequences for the holders of variable annuity contracts and variable
life insurance policies, contract holders should consult the prospectus of
the applicable separate account.

Fund investments in foreign securities may be subject to withholding taxes
at the source on dividend or interest payments. In that case, the fund's
yield on those securities would be decreased.

Financial highlights

The financial highlights table is intended to help you understand the
fund's recent financial performance. Certain information reflects
financial results for a single fund share. The total returns represent the
rate that an investor would have earned or lost on an investment in the
fund, assuming reinvestment of all dividends and distributions. This
information has been derived from the fund's financial statements, which
have been audited and reported on by PricewaterhouseCoopers LLP. Its
report and the fund's financial statements are included in the fund's
annual report to shareholders, which is available upon request.

Financial highlights
(For a share outstanding throughout the period)

Year ended December 31
-------------------------------------------------------
Per-share
operating performance 1999 1998 1997 1996 1995
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $26.06 $21.23 $17.22 $15.63 $10.82
- ----------------------------------------------------------------------------------
Investment operations
Net investment loss (.08) (a) (.04) -- (d) (.01) --

Net realized and unrealized
gain on investments 17.93 5.19 4.01 1.60 4.84
- ----------------------------------------------------------------------------------
Total from
investment operations 17.85 5.15 4.01 1.59 4.84
- ----------------------------------------------------------------------------------
Less distributions:
From net investment income -- -- -- -- --

In excess of net investment
income -- -- -- -- --

From net realized gain on
investments (.37) (.32) -- -- (.02)

In excess of net realized gain
on investments -- -- -- -- --

From return of capital -- -- -- -- --
- ----------------------------------------------------------------------------------
Total distributions (.37) (.32) -- -- (.03)
- ----------------------------------------------------------------------------------
Net asset value,
end of period $43.54 $26.06 $21.23 $17.22 $15.63
- ----------------------------------------------------------------------------------
Ratios and supplemental data

Total return
at net asset value (%)(b) 69.35 24.38 23.29 10.17 44.87

Net assets, end of period
(in thousands) $6,432,227 $3,586,225 $2,590,244 $1,674,197 $515,109
- ----------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(c) .59 .61 .63 .72 .84

Ratio of net investment loss
to average net assets (%) (.28) (.16) (.01) (.13) (.03)

Portfolio turnover (%) 71.14 59.75 71.78 57.94 30.87
- ----------------------------------------------------------------------------------

a Per share net investment income (loss) has been determined on the basis of the
weighted average number of shares outstanding during the period.

b Total return assumes dividend reinvestment and does not reflect the effect of
sales charges.

c Includes amounts paid through expense offset and brokerage service arrangements.

d Net investment income, distributions from net investment income and returns of
capital were less than $0.01 per share.

</TABLE>

For more information

about Putnam VT New Opportunities Fund and Putnam Variable Trust

The Trust's statement of additional information (SAI) and annual and
semi-annual reports to shareholders include additional information about
the fund. The SAI, and the auditor's report and financial statements
included in the Trust's most recent annual report to the fund's
shareholders, are incorporated by reference into this prospectus, which
means they are part of this prospectus for legal purposes. The Trust's
annual report discusses the market conditions and investment strategies
that significantly affected the fund's performance during the fund's last
fiscal year. You may get free copies of these materials, request other
information about the funds and other Putnam funds, or make shareholder
inquiries, by contacting your financial advisor or by calling Putnam
toll-free at 1-800-225-1581.

You may review and copy information about the fund, including the Trust's
SAI, at the Securities and Exchange Commission's public reference room in
Washington, D.C. You may call the Commission at 1- 202-942-8090 for
information about the operation of the public reference room. You may also
access reports and other information about the fund on the EDGAR database
on the Commission's Internet site at http://www.sec.gov. You may get
copies of this information, with payment of a duplication fee, by
electronic request at the following E-mail address: or by writing the
Commission's Public Reference Section of the Commission, Washington, D.C.
20549- 0102. You may need to refer to the fund's file number.

P U T N A M I N V E S T M E N T S

One Post Office Square
Boston, Massachusetts 02109
1-800-752-9894

Address correspondence to
Putnam Investor Services
P. O. Box 989
Boston, Massachusetts 02103

File No. 811-5346

Putnam Mutual Funds Corp.
Member, NASD, Inc.

Prospectus

April 30, 2000

Putnam Variable Trust

Class IA Shares

Growth Funds
Putnam VT International Growth Fund
Putnam VT International New Opportunities Fund
Putnam VT Vista Fund
Growth and Income Funds
Putnam VT Growth and Income Fund
Putnam VT New Value Fund

This prospectus explains what you should know about the funds in Putnam
Variable Trust listed above, which are available for purchase by separate
accounts of insurance companies.

CONTENTS

Fund summaries (including Goal, Main investment strategies, Main risks and
Performance Information)

What are the funds' main investment strategies and related risks?

Who manages the funds?

How to buy and sell fund shares

How do the funds price their shares?

Fund distributions and taxes

Financial highlights

Fund summaries

PUTNAM VT GROWTH AND INCOME FUND

GOAL

The fund seeks capital growth and current income.

MAIN INVESTMENT STRATEGIES -- VALUE STOCKS

We invest mainly in common stocks of U.S. companies with a focus on value
stocks. Value stocks are those we believe are currently undervalued by the
market. We look for companies undergoing positive change. If we are
correct and other investors recognize the value of the company, the price
of the stock may rise. We invest mainly in large companies.

MAIN RISKS

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: bar chart CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES

1990 1.96%
1991 19.05%
1992 9.75%
1993 14.27%
1994 0.35%
1995 36.71%
1996 21.92%
1997 24.15%
1998 15.42%
1999 1.59%

Year-to-date performance through 3/31/2000 was -1.76%. During the periods
shown in the bar chart, the highest return for a quarter was 16.62%
(quarter ending 12/31/98) and the lowest return for a quarter was -10.14%
(quarter ending 9/30/99).

Average annual total returns (for periods ending 12/31/99)

Past Past Past
1 year 5 years 10 years

Class IA 1.59% 19.39% 14.00%
S&P 500 Index 21.04% 28.56% 18.21%

The fund's performance is compared to the Standard & Poor's 500 Index, an
unmanaged index of common stocks frequently used as a general measure of
U.S. stock market performance.

PUTNAM VT INTERNATIONAL GROWTH FUND

GOAL

The fund seeks capital appreciation.

MAIN INVESTMENT STRATEGIES -- INTERNATIONAL STOCKS

MAIN RISKS

* The risks of investing outside the United States, such as currency
fluctuations, economic or financial instability, lack of timely or reliable
financial information or unfavorable political or legal developments in
international markets. The risks are increased for investments in emerging
markets.

* The risk that the stock price of one or more of the companies in the fund's
portfolio will fall, or will fail to rise. Many factors can adversely affect
a stock's performance, including both general financial market conditions and
factors related to a specific company or industry. This risk is generally
greater for small and midsized companies, which tend to be more vulnerable
to adverse developments.

* The risk that movements in financial markets will adversely affect the price
of the fund's investments, regardless of how well the companies in which we
invest perform.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: bar chart CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES

1998 18.69%
1999 60.21%

Average annual total returns (for periods ending 12/31/99)

Since
Past Inception
1 year (1/2/97)

Class IA 60.21% 30.33%
MSCI EAFE Index 26.96% 15.76%

The fund's performance benefited from Putnam Management's agreement to
limit the fund's expenses through the period ended December 31, 1998. The
fund's performance is compared to the Morgan Stanley Capital International
(MSCI) EAFE Index, an unmanaged index of equity securities from Europe,
Australia, and the Far East, with all values expressed in U.S. dollars.

PUTNAM VT INTERNATIONAL NEW OPPORTUNITIES FUND

GOAL

The fund seeks long-term capital appreciation.

MAIN INVESTMENT STRATEGIES -- INTERNATIONAL GROWTH STOCKS

MAIN RISKS

* The risks of investing outside the United States, such as currency
fluctuations, economic or financial instability, lack of timely or
reliable financial information, or unfavorable political or legal
developments. These risks are increased for investments in emerging markets.

* The risk that the stock price of one or more of the companies in the fund's
portfolio will fall, or will fail to rise. Many factors can adversely affect
a stock's performance, including both general financial market conditions and
factors related to a specific company or industry. This risk is generally
greater for small and midsized companies, which tend to be more vulnerable to
adverse developments.

* The risk that movements in financial markets will adversely affect the price
of the fund's investments, regardless of how well the companies in which we
invest perform. The market as a whole may not favor the types of investments
we make.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: bar chart CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES

1998 15.58%
1999 102.96%

Average annual total returns (for periods ending 12/31/99)

Since
Past Inception
1 year (1/2/97)

Class IA 102.96% 32.95%
MSCI EAFE Index 26.96% 15.76%

The fund's performance benefited from Putnam Management's agreement to
limit the fund's expenses through the period ended December 31, 1998. The
fund's performance is compared to the Morgan Stanley Capital International
(MSCI) EAFE Index, an unmanaged index of international equity securities
from Europe, Australia and the Far East, with all values expressed in U.S.
dollars.

PUTNAM VT NEW VALUE FUND

GOAL

The fund seeks long-term capital appreciation.

MAIN INVESTMENT STRATEGIES -- VALUE STOCKS

We invest mainly in common stocks of U.S. companies with a focus on value
stocks. Value stocks are those we believe are currently undervalued by the
market. We look for companies undergoing positive change. If we are
correct and other investors recognize the value of the company, the price
of the stock may rise. We invest mainly in midsized and large companies.

MAIN RISKS

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general financial
market conditions and factors related to a specific company or industry.
This risk is generally greater for small and midsized companies, which tend
to be more vulnerable to adverse developments.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: bar chart CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES

1998 6.26%
1999 0.27%

Year-to-date performance through 3/31/2000 was -0.54%. During the periods
shown in the bar chart, the highest return for a quarter was 16.45%
(quarter ending 12/31/98) and the lowest return for a quarter was -13.75%
(quarter ending 9/30/99).

Average annual total returns (for periods ending 12/31/99)

Since
Past Inception
1 year (1/2/97)

Class IA 0.27% 7.83%
S&P 500 Index 21.04% 24.77%

PUTNAM VT OTC & EMERGING GROWTH FUND

GOAL

The fund seeks capital appreciation.

MAIN INVESTMENT STRATEGIES -- GROWTH STOCKS

MAIN RISKS

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general financial
market conditions and factors related to a specific company or industry.
This risk is generally greater for small and midsized companies, which
tend to be more vulnerable to adverse developments.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: bar chart CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES

1999 126.52%

Average annual total returns (for periods ending 12/31/99)

Since
Past Inception
1 year (4/30/98)

Class IA 126.52% 64.09%
Russell 2000 Growth Index 43.09% 16.30%

The fund's performance benefited from Putnam Management's agreement to
limit the fund's expenses through the period ended December 31, 1999. The
fund's performance is compared to the Russell 2000 Growth Index, an
unmanaged index composed of securities with greater-than-average growth
orientation within the Russell 2000 Index.

PUTNAM VT VISTA FUND

GOAL

The fund seeks capital appreciation.

MAIN INVESTMENT STRATEGIES -- GROWTH STOCKS

MAIN RISKS

* The risk that the stock price of one or more of the companies in the fund's
portfolio will fall, or will fail to rise. Many factors can adversely affect
a stock's performance, including both general financial market conditions and
factors related to a specific company or industry. This risk is generally
greater for small and midsized companies, which tend to be more vulnerable to
adverse developments.

* The risk that movements in financial markets will adversely affect the price
of the fund's investments, regardless of how well the companies in which we
invest perform. The market as a whole may not favor the types of investments
we make.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: bar chart CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES

1998 19.48%
1999 52.90%

Year-to-date performance through 3/31/2000 was 21.23%. During the periods
shown in the bar chart, the highest return for a quarter was 41.28%
(quarter ending 12/31/99) and the lowest return for a quarter was -17.22%
(quarter ending 9/30/98).

Average annual total returns (for periods ending 12/31/99)

Since
Past Inception
1 year (1/2/97)

Class IA 52.90% 31.17%
Russell Midcap Growth Index 51.29% 29.79%
S&P 500 Index 21.04% 27.58%

The fund's performance benefited from Putnam Management's agreement to
limit the fund's expenses through the period ended December 31, 1998. The
fund's performance is compared to the Standard & Poor's 500 Index, an
unmanaged index of common stocks frequently used as a general measure of
U.S. stock market performance. The fund's performance is also compared to
the Russell Midcap Growth Index, an unmanaged index that measures the
performance of those companies in the Russell Midcap Index that have higher
prices relative to the book value of their assets and higher forecasted
growth rates. The Russell Midcap Growth Index is replacing the S&P 500
Index because Putnam Management believes the Russell Midcap Growth Index is
a more appropriate index against which to compare the fund's performance.

What are the funds' main investment strategies and related risks?

Common stocks. Common stock represents an ownership interest in a company.
The value of a company's stock may fall as a result of factors relating
directly to that company, such as decisions made by its management or lower
demand for the company's products or services. A stock's value may also
fall because of factors affecting not just the company, but companies in
the same industry or in a number of different industries, such as increases
in production costs. The value of a company's stock may also be affected
by changes in financial markets that are relatively unrelated to the
company or its industry, such as changes in interest rates or currency
exchange rates. In addition, a company's stock generally pays dividends
only after the company invests in its own business and makes required
payments to holders of its bonds and other debt. For this reason, the
value of a company's stock will usually react more strongly than its bonds
and other debt to actual or perceived changes in the company's financial
condition or prospects. Stocks of smaller companies may be more vulnerable
to adverse developments than those of larger companies.

Smaller companies. We may invest in smaller companies. These companies,
which may have market capitalizations of less than $1 billion, are more
likely than larger companies to have limited product lines, markets or
financial resources, or to depend on a small, inexperienced management
group. Stocks of these companies often trade less frequently and in
limited volume, and their prices may fluctuate more than stocks of larger
companies. Stocks of smaller companies may therefore be more vulnerable to
adverse developments than those of larger companies.

Foreign investments. Each of the funds may invest in securities of foreign
issuers. Foreign investments involve certain special risks, including

* Political and economic developments: Foreign investments may be subject to
the risks of seizure by a foreign government, imposition of restrictions on
the exchange or export of foreign currency, and tax increases.

* Limited legal recourse: Legal remedies for investors may be more limited
than the remedies available in the United States.

* Trading practices: Brokerage commissions and other fees are generally higher
for foreign investments than for U.S. investments. The procedures and rules
governing foreign transactions and custody may also involve delays in
payment, delivery or recovery of money or investments.

Other risks arise from the potential inability to terminate or sell
derivatives positions. A liquid secondary market may not always exist for
the fund's derivative positions at any time. In fact, many
over-the-counter instruments (investments not traded on an exchange) will
not be liquid. Over-the-counter instruments also involve the risk that the
other party to the derivative transaction will not meet its obligations.
For further information about the risks of derivatives, see the Trust's
statement of additional information (SAI).

Frequent trading. We may buy and sell investments relatively often, which
involves higher brokerage commissions and other expenses.

Other investments. In addition to the main investment strategies described
above, we may make other investments, such as investmetns in preferred
stocks, convertible securities and debt securities which may be subject to
other risks as described in the SAI.

Changes in policies. The Trust's Trustees may change any of the funds'
goals, investment strategies and other policies without shareholder
approval, except as otherwise indicated.

Who manages the funds?

- ----------------------------------------------------------------
Management
Putnam VT Fund Fees
- ----------------------------------------------------------------
Putnam VT Global Growth Fund 0.61%
- ----------------------------------------------------------------
Putnam VT International Growth Fund 0.80%
- ----------------------------------------------------------------
Putnam VT International New Opportunities Fund 1.08%
- ----------------------------------------------------------------
Putnam VT Vista Fund 0.65%
- ----------------------------------------------------------------

The following officers of Putnam Management have primary responsibility for
the day-to-day management of the relevant fund's portfolio. Each officer's
length of service to the relevant fund and the officer's experience as
portfolio manager or investment analyst over at least the last five years
are shown.

Fund name Year Business experience (at least 5 years)
<S> <C> <C> <C>
Putnam VT Growth and Income Fund
David L. King 1993 1983-Present Putnam Management
Managing Director

Hugh H. Mullin 1998 1986-Present Putnam Management
Senior Vice President

Sheldon N. Simon 1997 1984-Present Putnam Management
Senior Vice President

Putnam VT International Growth Fund
Justin M. Scott 1996 1988-Present Putnam Management
Managing Director

Omid Kamshad 1996 1996-Present Putnam Management
Managing Director Prior to Lombard Odier
January 1996 International

Mark D. Pollard 1999 1990-Present Putnam Management
Managing Director

Paul C. Warren 1999 1997-Prsent Putnam Management
Senior Vice President Prior to IDS Fund Management
May 1997

Joshua L. Byrne 2000 1993-Present Putnam Management
Senior Vice President

Putnam VT International New Opportunities Fund
Robert J. Swift 1996 1995-Present Putnam Management
Managing Director Prior to IAI International/
August 1995 Hill Samuel
Investment Advisors

Carmel Peters 1999 1997-Present Putnam Management
Senior Vice President Prior to Wheelock Natwest
May 1997 Investment
Management,
Hong Kong
Prior to Rothschild Asset
February 1996 Management
Asia Pacific,
Hong Kong

Stephen P. Dexter 1999 1999-Present Putnam Management
Senior Vice President Prior to Scudder Kemper
June 1999 Inc.

Putnam VT New Value Fund
David L. King 1996 1983-Present Putnam Management
Managing Director

Putnam VT Vista Fund
Eric Wetlaufer 1997 1997-Present Putnam Management
Managing Director Prior to Cadence Capital
November 1997 Management

Anthony C. Santosus 1996 1985-Present Putnam Management
Senior Vice President

Margery C. Parker 1998 1997-Present Putnam Management
Senior Vice President Prior to Keystone Investments
December 1997

Dana Clark 1999 1987-Present Putnam Management
Vice President

</TABLE>

How to buy and sell fund shares

Shares are sold or redeemed at the net asset value per share next
determined after receipt of an order. Orders for purchases or sales of
shares of a fund must be received by Putnam Mutual Funds before the close
of regular trading on the New York Stock Exchange in order to receive that
day's net asset value. No fee is charged to a separate account when it
redeems fund shares.

How do the funds price their shares?

Each fund values its investments for which market quotations are readily
available at market value. It values short-term investments that will
mature within 60 days at amortized cost, which approximates market value.
It values all other investments and assets at their fair value. Putnam VT
Money Market Fund values all of its investments at amortized cost.

Each fund translates prices for its investments quoted in foreign
currencies into U.S. dollars at current exchange rates. As a result,
changes in the value of those currencies in relation to the U.S. dollar may
affect each fund's NAV. Because foreign markets may be open at different
times than the New York Stock Exchange, the value of each fund's shares may
change on days when shareholders are not able to buy or sell them. If
events materially affecting the values of each fund's foreign investments
occur between the close of foreign markets and the close of regular trading
on the New York Stock Exchange, these investments will be valued at their
fair value.

Fund distributions and taxes

Each fund will distribute any net investment income and net realized
capital gains at least annually. Both types of distributions will be made
in shares of such funds unless an election is made on behalf of a separate
account to receive some or all of the distributions in cash.

Fund investments in foreign securities may be subject to withholding taxes
at the source on dividend or interest payments. In that case, a fund's
yield on those securities would be decreased.

Financial highlights

Financial Highlights

Investment Operations Less Distributions:

Putnam VT Growth and Income Fund
1999 $28.77 $.47(a) $0.01 $.48 $(.41) $ -- $(2.04) $ --
1998 28.32 .44(a) 3.77 4.21 (.50) -- (3.26) --
1997 24.56 .48 5.07 5.55 (.52) -- (1.27) --
1996 21.47 .65(a) 3.84 4.49 (.51) -- (.89) --
1995 16.44 .53 5.31 5.84 (.51) -- (.30) --

Putnam VT International Growth Fund
1999 $13.52 $.08(a) $8.06 $8.14 $ -- $ -- $ -- $ --
1998 11.43 .11(a) 2.03 2.14 (.04) -- -- --
1997*** 10.00 .05(b) 1.56 1.61 (.05) (.02) (.04) (.06)

Putnam VT International New Opportunities Fund
1999 $11.49 $(.05)(a) $11.88 $11.83 $(.01) $ -- $ -- $ --
1998 9.96 .04(a)(b) 1.59 1.55 (.02) -- -- --
1997*** 10.00 .01(b) (.02) (.01) (.01) (.02) -- --

Putnam VT New Value Fund
1999 $12.03 $.18(a) $(.14) $.04 $ -- (e) $ -- $ (.21) $ --
1998 11.76 .16(a) .57 .73 (.23) -- (.23) --
1997*** 10.00 .18(a) 1.58 1.76 -- -- -- --

Putnam VT Vista Fund
1999 $14.72 $(.05)(a) $7.64 $7.59 $ -- $ -- $(1.63) $ --
1998 12.32 (.02)(a) 2.42 2.40 -- -- -- --
1997*** 10.00 -- (e) 2.32 2.32 -- (e) -- -- --

Putnam VT International Growth Fund
1999 $ -- $ -- $21.66 60.21 $627,368 1.02 .51 107.38
1998 (.01) (.05) 13.52 18.69 317,602 1.07 .84 98.31
1997*** (.01) (.18) 11.43 16.13 150,884 1.20(b) .79(b) 75.18

Putnam VT International New Opportunities Fund
1999 $ -- $(.01) $23.31 102.96 $330,982 1.41 (.36) 196.53
1998 -- (.02) 11.49 15.58 135,451 1.60(b) (.36)(b) 157.72
1997*** -- (.03) 9.96 (.10) 107,000 1.60(b) .09(b) 131.89

Putnam VT New Value Fund
1999 $ -- $(.21) $11.86 .27 $249,092 .80 1.40 98.21
1998 -- (.46) 12.03 6.26 255,754 .81 1.34 130.96
1997*** -- -- 11.76 17.60 195,391 .85 1.59 64.15

Putnam Vista Fund
1999 $ -- $(1.63) $20.68 52.90 $542,491 .75 (.29) 133.32
1998 -- -- 14.72 19.48 311,612 .77 (.12) 116.48
1998*** --(e) -- 12.32 23.21 170,660 .87 -- 75.43

* Not annualized.

** For the period January 2, 1997 (commencement of operations) to December 31, 1997.

(a) Per share net investment income has been determined on the basis of the weighted average number of shares outstanding
during the period.

(b) Reflects an expense limitation in effect during the period. As a result of such limitation, expenses of Putnam VT
International Growth Fund for the period ended 1997 reflect a reduction of approximately $0.01 per share and expenses
of Putnam VT International New Opportunities Fund for the period ended 1997 reflect a reduction of approximately $0.02
per share and for the period ended 1998 reflect a reduction of approximately less than $0.01 per share, expenses of
Putnam VT Investors Fund for the period ended 1998 reflect a reduction of approximately less than $0.01 per share.

(d) Includes amounts paid through expense offset and brokerage service arrangements.

(e) Net investment income, distributions from net investment income and returns of capital were less than 0.01 per share.

</TABLE>

For more information
about the funds of Putnam Variable Trust

The Trust's statement of additional information (SAI) and annual and
semi-annual reports to shareholders include additional information about
the funds. The SAI, and the auditor's report and financial statements
included in the Trust's most recent annual report to the funds'
shareholders, are incorporated by reference into this prospectus, which
means they are part of this prospectus for legal purposes. The Trust's
annual report discusses the market conditions and investment strategies
that significantly affected the funds' performance during the funds' last
fiscal year. You may get free copies of these materials, request other
information about the funds and other Putnam funds, or make shareholder
inquiries, by contacting your financial advisor, by visiting Putnam's Web
site, or by calling Putnam toll-free at 1-800-225-1581.

You may review and copy information about the funds, including the Trust's
SAI, at the Securities and Exchange Commission's public reference room in
Washington, D.C. You may call the Commission at 1-202-942-8090 for
information about the operation of the public reference room. You may also
access reports and other information about the fund on the EDGAR Database
on the Commission's Internet site at http://www.sec.gov. You may get
copies of this information, with payment of a duplication fee, by
electronic request at the following E-mail address: [email protected]. or
by writing the Commission's Public Reference Section, Washington, D.C.
20549-0102. You may need to refer to the fund's file number.

P U T N A M I N V E S T M E N T S

One Post Office Square
Boston, Massachusetts 02109
1-800-225-1581

Address correspondence to
Putnam Investor Services
P.O. Box 989
Boston, Massachusetts 02103

www.putnaminv.com

File No. 811-5346

Prospectus
April 30, 2000

Putnam Variable Trust
Class IA Shares

Growth Funds

Putnam VT New Opportunities Fund
Putnam VT Voyager Fund

Growth and Income Funds
Putnam VT Growth and Income Fund

This prospectus explains what you should know about the funds in Putnam
Variable Trust listed above, which are available for purchase by separate
accounts of insurance companies.

CONTENTS

2 Fund summaries (including Goal, Main investment strategies, Main
risks and Performance Information)

4 What are the funds' main investment strategies and related risks?

5 Who manages the funds?

6 How to buy and sell fund shares

6 How do the funds price their shares?

7 Fund distributions and taxes

8 Financial highlights

Fund summaries

PUTNAM VT GROWTH AND INCOME FUND

GOAL

The fund seeks capital growth and current income.

MAIN INVESTMENT STRATEGIES - VALUE STOCKS

MAIN RISKS

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general
financial market conditions and factors related to a specific company
or industry. This risk is generally greater for small and midsized
companies, which tend to be more vulnerable to adverse developments.

* The risk that movements in financial markets will adversely affect
the price of the fund's investments, regardless of how well the
companies in which we invest perform. The market as a whole may not
favor the types of investments we make.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: Vertical bar chart CALENDAR YEAR
TOTAL RETURNS FOR CLASS IA SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES

1990 1.96%
1991 19.05%
1992 9.75%
1993 14.27%
1994 0.35%
1995 36.71%
1996 21.92%
1997 24.15%
1998 15.42%
1999 1.59%

Year-to-date performance through 3/31/2000 was -1.76%. During the periods
shown in the bar chart, the highest return for a quarter was 16.62%
(quarter ending 12/31/98) and the lowest return for a quarter was -10.14%
(quarter ending 9/30/99).

Average annual total returns (for periods ending 12/31/99)

Past Past Past
1 year 5 years 10 years

Class IA 1.59% 19.39% 14.00%
S&P 500 Index 21.04% 28.56% 18.21%

The fund's performance is compared to the Standard & Poor's 500 Index, an
unmanaged index of common stocks frequently used as a general measure of
U.S. stock market performance.

PUTNAM VT NEW OPPORTUNITIES FUND

GOAL

The fund seeks long-term capital appreciation.

MAIN INVESTMENT STRATEGIES - GROWTH STOCKS

MAIN RISKS

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general
financial market conditions and factors related to a specific company
or industry. This risk is generally greater for small and midsized
companies, which tend to be more vulnerable to adverse developments.

* The risk that movements in financial markets will adversely affect the
price of the fund's investments , regardless of how well the companies
in which we invest perform. The market as a whole may not favor the
types of investments we make.

* The risk of investing in a limited group of market sectors. The
vulnerability of the fund to factors affecting the sectors chosen may
be significantly greater than that of a fund that invests in a broader
range of sectors and may result in greater fund losses and volatility.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: Vertical bar chart CALENDAR YEAR
TOTAL RETURNS FOR CLASS IA SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES

1995 44.87%
1996 10.17%
1997 23.29%
1998 24.38%
1999 69.35%

Average annual total returns (for periods ending 12/31/99)

Since
Past Past Inception
1 year 5 years (5/2/94)

Class IA 69.35% 32.89% 30.36%
Russell Midcap Growth Index 18.23% 21.86% 24.61%
S&P 500 Index 21.04% 28.56% 25.66%

PUTNAM VT VOYAGER FUND

GOAL

The fund seeks capital appreciation.

MAIN INVESTMENT STRATEGIES - GROWTH STOCKS

MAIN RISKS

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general
financial market conditions and factors related to a specific
company or industry. This risk is generally greater for small and
midsized companies, which tend to be more vulnerable to adverse
developments.

* The risk that movements in financial markets will adversely affect
the price of the fund's investments, regardless of how well the
companies in which we invest perform. The market as a whole may not
favor the types of investments we make.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: Vertical bar chart CALENDAR YEAR
TOTAL RETURNS FOR CLASS IA SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IA SHARES

1990 -2.03%
1991 46.09%
1992 10.36%
1993 18.70%
1994 1.04%
1995 40.67%
1996 12.97%
1997 26.51%
1998 24.36%
1999 58.22%

Average annual total returns (for periods ending 12/31/99)

Past Past Past
1 year 5 years 10 years

Class IA 58.22% 31.66% 22.31%
Russell Midcap
Growth Index 51.29% 28.03% 18.96%
S&P 500 Index 21.04% 28.56% 18.21%

What are the funds' main investment strategies and related risks?

Foreign investments. Each of the funds may invest in securities of foreign
issuers. Foreign investments involve certain special risks, including

* Political and economic developments: Foreign investments may be subject
to the risks of seizure by a foreign government, imposition of
restrictions on the exchange or export of foreign currency, and tax
increases.

* Unreliable or untimely information: There may be less information
publicly available about a foreign company than about most U.S.
companies, and foreign companies are usually not subject to accounting,
auditing and financial reporting standards and practices as stringent as
those in the United States.

* Limited legal recourse: Legal remedies for investors may be more limited
than the remedies available in the United States.

* Limited markets: Certain foreign investments may be less liquid (harder
to buy and sell) and more volatile than U.S. investments, which means we
may at times be unable to sell these foreign investments at desirable
prices. For the same reason, we may at times find it difficult to value
the fund's foreign investments.

* Lower yield: Common stocks of foreign companies have historically
offered lower dividends than stocks of comparable U.S. companies.
Foreign withholding taxes may further reduce the amount of income
available to distribute to shareholders of the fund. The fund's yield is
therefore expected to be lower than yields of most funds that invest
mainly in U.S. companies.

* Sovereign issuers: The willingness and ability of sovereign issuers to
pay principal and interest on government securities depends on various
economic factors, including the issuer's balance of payments, overall
debt level, and cash flow from tax or other revenues.

Other investments. In addition to the main investment strategies described
above, we may make other investments, such as investments in preferred
stocks, convertible securities, debt instruments and derivatives, which may
be subject to other risks as described in the SAI.

Changes in policies. The Trust's Trustees may change any of the funds'
goals, investment strategies and other policies without shareholder
approval, except as otherwise indicated.

Who manages the funds?

Putnam VT Fund
Management
Fees
Putnam VT Growth and Income Fund 0.46%
Putnam VT New Opportunities Fund 0.54%
Putnam VT Voyager Fund 0.53%

The following officers of Putnam Management have primary responsibility
for the day-to-day management of the relevant fund's portfolio. Each
officer's length of service to the relevant fund and the officer's
experience as portfolio manager or investment analyst over at least the
last five years are shown.

Fund name Year Business experience (at least 5 years)
<S> <C> <C> <C>
Putnam VT Growth and Income Fund
David L. King 1993 1983-Present Putnam Management
Managing Director

Hugh H. Mullin 1998 1986-Present Putnam Management
Senior Vice President

Sheldon N. Simon 1997 1984-Present Putnam Management
Senior Vice President

Putnam VT New Opportunities Fund
Daniel L. Miller 1994 1983-Present Putnam Management
Managing Director

Jeffrey R. Lindsey 1999 1994-Present Putnam Management
Senior Vice President

Kenneth Lang 1999 1997-Present Putnam Management
Vice President Prior to April 1997 Montgomery Securities

Putnam VT Voyager Fund
Robert R. Beck 1995 1989-Present Putnam Management
Managing Director

Roland W. Gillis 1995 1995- Present Putnam Management
Managing Director Prior to March 1995 Keystone Custodian
Funds, Inc.

Michael P. Stack
Senior Vice President 1997 1997- Present Putnam Management
Prior to November 1997 Independence Investment
Associates, Inc.

Charles H. Swanberg
Senior Vice President 1994 1984-Present Putnam Management

Paul Marrkand
Senior Vice President 2000 1987-Present Putnam Management

</TABLE>

How to buy and sell fund shares

How do the funds price their shares?

Each fund translates prices for its investments quoted in foreign
currencies into U.S. dollars at current exchange rates. As a result,
changes in the value of those currencies in relation to the U.S. dollar may
affect each fund's NAV. Because foreign markets may be open at different
times than the New York Stock Exchange, the value of each fund's shares may
change on days when shareholders are not able to buy or sell them. If
events materially affecting the values of each fund's foreign investments
occur between the close of foreign markets and the close of regular trading
on the New York Stock Exchange, these investments will be valued at their
fair value.

Fund distributions and taxes

Distributions are reinvested without a sales charge, using the net asset
value determined on the ex-dividend date . Distributions on each share are
determined in the same manner and are paid in the same amount, regardless
of class, except for such differences as are attributable to differential
class expenses.

Fund investments in foreign securities may be subject to withholding taxes
at the source on dividend or interest payments. In that case, a fund's
yield on those securities would be decreased.

Financial highlights

Financial Highlights
Investment Operations Less Distributions:
Net Asset Net Realized From net In excess of
Value, Net and Unrealized Total from From net Realized Net Realized
Beginning Investment Gain (Loss) on Investment Investment Gain on Gain on
Period ended of Period Income (Loss) Investments operations Income Investments Investments
<S> <C> <C> <C> <C> <C> <C> <C>
Putnam VT Growth and Income Fund
1999 $28.77 $.47(a) $0.01 $.48 $(.41) $-- $(2.04)
1998 28.32 .44(a) 3.77 4.21 (.50) -- (3.26)
1997 24.56 .48 5.07 5.55 (.52) -- (1.27)
1996 21.47 .65(a) 3.84 4.49 (.51) -- (.89)
1995 16.44 .53 5.31 5.84 (.51) -- (.30)
Putnam VT New Opportunities Fund
1999 $26.06 $(.08)(a) $17.93 $17.85 $-- $-- $(.37)
1998 21.23 (.04) 5.19 5.15 -- -- (.32)
1997 17.22 --(d) 4.01 4.01 -- -- --
1996 15.63 (.01) 1.60 1.59 -- -- --
1995 10.82 -- 4.84 4.84 -- -- (.02)
Putnam VT Voyager Fund
1999 $45.85 $.03(a) $24.59 $24.62 $(.05) $-- $(4.17)
1998 39.08 .05(a) 9.26 9.31 (.10) -- (2.44)
1997 32.53 .10 8.01 8.11 (.07) -- (1.49)
1996 30.50 .09 3.75 3.84 (.13) -- (1.68)
1995 22.20 .10 8.76 8.86 (.07) -- (.49)

</TABLE>

Total Ratio of Net
Investment Ratio of Investment
From Net Asset Return at Net Assets Expenses to Income (Loss) to
Return of Total Value, End Net Asset End of Period Average Net Average Net Portfolio
Capital Distributions of Period Value(%)(b) (in thousands) Assets(%)(c) Assets(%) Turnover (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Putnam VT Growth and Income Fund
1999 $-- $(2.45) $26.80 1.59 $9,567,077 .50 1.66 53.68
1998 -- (3.76) 28.77 15.42 9,948,386 .50 1.59 63.62
1997 -- (1.79) 28.32 24.15 8,337,334 .51 2.08 64.96
1996 -- (1.40) 24.56 21.92 5,679,100 .54 2.90 39.57
1995 -- (.81) 21.47 36.71 3,312,306 .57 3.34 50.87
Putnam VT New Opportunities Fund
1999 $-- $(.37) $43.54 69.35 $6,432,227 .59 (.28) 71.14
1998 -- (.32) 26.06 24.38 3,586,225 .61 (.16) 59.75
1997 -- -- 21.23 23.29 2,590,244 .63 (.01) 71.78
1996 -- -- 17.22 10.17 1,674,197 .72 (.13) 57.94
1995 (.01) (.03) 15.63 44.87 515,109 .84 (.03) 30.87
Putnam VT Voyager Fund
1999 $-- $(4.22) $66.25 58.22 $9,130,197 .57 .05 85.13
1998 -- (2.54) 45.85 24.36 5,803,073 .58 .14 62.99
1997 -- (1.56) 39.08 26.51 4,538,535 .59 .30 82.00
1996 -- (1.81) 32.53 12.97 3,281,490 .63 .36 63.87
1995 -- (.56) 30.50 40.67 2,000,232 .68 .49 57.51

(a) Per share net investment income has been determined on the basis of the
weighted average number of shares outstanding during the period.

(b) Total investment return assumes dividend reinvestment.

(d) Net investment income, distributions from net investment income and
returns of capital were less than 0.01 per share.

</TABLE>

For more information
about the funds of Putnam Variable Trust

PUTNAM INVESTMENTS

One Post Office Square
Boston, Massachusetts 02109

1-800- 225-1581

Address correspondence to
Putnam Investor Services

P.O. Box 989

Boston, Massachusetts 02103

www.putnaminv.com

File No. 811-5346

Prospectus

April 30, 2000

Putnam Variable Trust
Class IB Shares

Growth Funds

Putnam VT Asia Pacific Growth Fund

Putnam VT Global Growth Fund

Putnam VT Growth Opportunities Fund
Putnam VT Health Sciences Fund
Putnam VT International Growth Fund
Putnam VT International New Opportunities Fund
Putnam VT Investors Fund
Putnam VT New Opportunities Fund

Putnam VT OTC & Emerging Growth Fund

Putnam VT Research Fund

Putnam VT Vista Fund
Putnam VT Voyager Fund

Asset Allocation Fund
Putnam VT Global Asset Allocation

Growth and Income Funds

Putnam VT The George Putnam Fund of Boston

Putnam VT Growth and Income Fund
Putnam VT International Growth and Income Fund
Putnam VT New Value Fund
Putnam VT Small Cap Value Fund
Putnam VT Utilities Growth and Income Fund

Income Funds

Putnam VT American Government Income Fund

Putnam VT Diversified Income Fund
Putnam VT High Yield Fund
Putnam VT Income Fund

Money Market Fund
Putnam VT Money Market Fund

This prospectus explains what you should know about the funds in Putnam
Variable Trust, which are available for purchase by separate accounts of
insurance companies.

CONTENTS

Fund summaries (including Goal, Main investment strategies, Main risks and
Performance Information)

What are the funds' main investment strategies and related risks?

Who manages the funds?

How to buy and sell fund shares

Distribution Plan

How do the funds price their shares?

Fund distributions and taxes

Financial highlights

Fund summaries

The following summaries identify each fund's goal, main investment
strategies and the main risks that could adversely affect the value of a
fund's shares and the total return on your investment. Each summary also
contains performance information that provides some indication of each
fund's risks. The chart contained in each summary shows year-to-year
changes in the performance of the fund's Class IB shares. A table
following each chart compares the fund's performance to that of broad
measures of market performance. Of course, a fund's past performance is
not necessarily an indication of future performance. None of the
performance information reflects the impact of insurance-related charges or
expenses. If it did, performance would be less than that shown. Please
refer to the prospectus for your insurance contract for information about
those charges and performance data reflecting those charges and expenses.

Class IB performance for the period prior to April 6, 1998 for Putnam VT
Growth and Income Fund and for the period prior to April 30, 1998 for
Putnam VT Global Growth Fund, Putnam VT Money Market Fund, Putnam VT New
Value Fund are based on the performance of class IA shares of the fund (not
offered in this prospectus), adjusted to reflect the fees paid by class IB
shares, including a 12b-1 fee of 0.15%.

PUTNAM VT AMERICAN GOVERNMENT INCOME FUND

GOAL

The fund seeks high current income with preservation of capital as its
secondary objective.

MAIN INVESTMENT STRATEGIES - U.S. GOVERNMENT BONDS

We invest mostly in bonds that

* are obligations of the U.S. government, its agencies and instrumentalities,

* are either backed by the full faith and credit of the United States, such
as U.S. Treasury bonds and Ginnie Mae mortgage-backed bonds, or backed
only by the credit of a federal agency or government sponsored entity,
such as Fannie Mae mortgage-backed bonds, and

* have intermediate- to long-term maturities (three years or longer).

MAIN RISKS

* The risk that the issuers of the fund's investments will not make timely
payments of interest and principal.

* The risk that, compared to other debt, mortgage-backed investments may
increase in value less when interest rates decline, and decline in value
more when interest rates rise.

PERFORMANCE INFORMATION

Performance information will be available after the fund completes a full
calendar year of operation.

PUTNAM VT ASIA PACIFIC GROWTH FUND

GOAL

The fund seeks capital appreciation.

MAIN INVESTMENT STRATEGIES - ASIAN AND PACIFIC BASIN STOCKS

MAIN RISKS

* The risks of investing mostly in one geographic region. Investments in a
single region, even though representing a number of different countries
within the region, may be affected by common economic forces and other
factors. This vulnerability to factors affecting Asian and Pacific
Basin investments is significantly greater than for a more
geographically diversified fund, which may result in greater losses and
volatility.

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general financial
market conditions and factors related to a specific company or industry.
This risk is generally greater for small and midsized companies, which
tend to be more vulnerable to adverse developments.

* The risk that movements in financial markets will adversely affect the
price of the fund's investments, regardless of how well the companies in
which we invest perform.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: vertical bar chart CALENDAR YEAR TOTAL RETURNS FOR
CLASS IB SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IB SHARES

1996 8.94%
1997 -14.78%
1998 -5.53%

1999 107.08%

Year-to-date performance through 3/31/2000 was - 6.69%. During the
periods shown in the bar chart, the highest return for a quarter was
41.63% (quarter ending 12/31/99) and the lowest return for a quarter was
- -15.86% (quarter ending 12/31/97).

Average annual total returns (for periods ending 12/31/99)

Since
Past Inception

1 year (5/1/95)
Class IB 107.08% 14.17%
MSCI Pacific Index 57.63% 2.11%

PUTNAM VT DIVERSIFIED INCOME FUND

GOAL

The fund seeks as high a level of current income as Putnam Management
believes is consistent with preservation of capital.

MAIN INVESTMENT STRATEGIES - MULTI-SECTOR BONDS

We invest mostly in bonds that

* are obligations of corporations and governments worldwide,

* are a combination of investment-grade and below investment-grade
securities (junk bonds), and

* have intermediate- to long-term maturities (three years or longer).

We invest a portion of the fund in each of three sectors:

* U.S. and investment-grade sector: U.S. government securities and
investment-grade bonds of U.S. corporations.

* High yield sector: lower-rated bonds of U.S. corporations.

* International sector: bonds of foreign governments and corporations,
including both investment-grade and lower-rated securities.

MAIN RISKS

* The risk that movements in financial markets will adversely affect the
value of the fund's investments. This risk includes interest rate
risk, which means that the prices of the fund's investments are likely
to fall if interest rates rise. Interest rate risk is generally highest
for investments with long maturities.

* The risk that the issuers of the fund's investments will not make timely
payments of interest and principal. This credit risk is higher for
debt that is below investment grade in quality. Because the fund
invests significantly in junk bonds, this risk is heightened for the
fund. Investors should carefully consider the risks associated with an
investment in the fund.

* The risk that, compared to other debt, mortgage-backed investments may
increase in value less when interest rates decline, and decline in value
more when interest rates rise.

* The risks of investing outside the United States, such as currency
fluctuations, economic or financial instability, lack of timely or
reliable financial information or unfavorable political or legal
developments in foreign markets. These risks are increased for
investments in emerging markets.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: vertical bar chart CALENDAR YEAR TOTAL RETURNS FOR
CLASS IB SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IB SHARES

1994 -4.38%
1995 18.95%
1996 8.65%
1997 7.22%
1998 -1.60%

1999 1.65%

Year-to-date performance through 3/31/2000 was 0.59%. During the periods
shown in the bar chart, the highest return for a quarter was 5.93% (quarter
ending 6/30/95) and the lowest return for a quarter was - 4.94% (quarter
ending 9/30/98).

Average annual total returns (for periods ending 12/31/99)

Since
Past Past Inception
1 year 5 years (9/15/93)

Class IB 1.65% 6.74% 4.95%
Lehman Brothers Mortgage-Backed
Bond Index 1.85% 7.98% 6.21%
Lehman Brothers Aggregate
Bond Index -0.82% 7.73% 5.65%
Salomon Brothers Non- U.S.
World Government Bond Index -4.26% 6.42% 5.48%
First Boston High Yield Bond Index 3.28% 9.08% 7.77%

The fund's performance is compared to the Lehman Brothers Mortgage- Backed
Bond Index, an unmanaged index of U.S. government and mortgage-backed
securities; the Lehman Brothers Aggregate Bond Index, an unmanaged index
that is frequently used as a broad market measure for U.S.
denominated-investment grade fixed-income securities; the Salomon Brothers
Non-U.S. World Government Bond Index, an unmanaged index of bonds issued
by ten countries, excluding the United States; and the First Boston High
Yield Bond Index, an unmanaged index of lower-rated, higher-yielding U.S.
corporate bonds. The Lehman Brothers Aggregate Bond Index is replacing the
Lehman Brothers Mortgage-Backed Bond Index because Putnam Management
believes the Lehman Brothers Aggregate Bond Index is a more appropriate
index against which to compare the fund's performance.

PUTNAM VT THE GEORGE PUTNAM FUND OF BOSTON

GOAL

The fund seeks to provide a balanced investment composed of a well
diversified portfolio of stocks and bonds which produce both capital
growth and current income.

MAIN INVESTMENT STRATEGIES - VALUE STOCKS AND BONDS

Main risks

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general financial
market conditions and factors related to a specific company or industry.
This risk is generally greater for small and midsized companies, which
tend to be more vulnerable to adverse developments.

* The risk that movements in financial markets will adversely affect the
price of the fund's investments, regardless of how well the companies
in which we invest perform. The market as a whole may not favor the
types of investments we make.

* The risk that prices of bonds we buy will fall if interest rates rise.
Interest rate risk is generally higher for investments with longer
maturities.

* The risk that issuers of bonds we buy will not make timely payments of
interest and principal. This credit risk is generally higher for debt
that is below investment-grade in quality.

* The risk that our allocation of investments between stocks and bonds
may adversely affect the fund's performance.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: vertical bar chart CALENDAR YEAR TOTAL RETURNS
FOR CLASS IB SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IB SHARES

1999 -0.41%

Year-to-date performance through 3/31/2000 was -0.80%. During the periods
shown in the bar chart, the highest return for a quarter was 4.92% (quarter
ending 6/30/99) and the lowest return for a quarter was -6.89% (quarter
ending 9/30/99).

Average annual total returns (for periods ending 12/31/99)

Since
Past Inception
1 year (4/30/98)

Class IB -0.41% 1.94%
S&P 500 Index 21.04% 19.80%
Lehman Brothers Government/
Corporate Bond Index -2.16% 2.95%

PUTNAM VT GLOBAL ASSET ALLOCATION FUND

GOAL

The fund seeks a high level of long-term total return consistent with
preservation of capital.

MAIN INVESTMENT STRATEGIES - ASSET ALLOCATION

* U.S. Equities: This sector will invest primarily in growth and value
stocks of U.S. companies. Growth stocks are issued by companies whose
earnings we believe are likely to grow faster than the economy as a
whole. Growth in earnings may lead to an increase in the price of the
stock. Value stocks are those we believe are currently undervalued
compared to their true worth. If we are correct and other investors
recognize the value of the company, the price of the stock may rise.

* International Equities: This sector will invest primarily in growth and
value stocks principally traded in foreign securities markets.

MAIN RISKS

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general financial
market conditions and factors related to a specific company or industry.
This risk is generally greater for small and midsized companies, which
tend to be more vulnerable to adverse developments.

* The risk that movements in financial markets will adversely affect the
price of the fund's investments, regardless of how well the companies in
which we invest perform.

* The risk that prices of bonds we buy will fall if interest rates rise.
Interest rate risk is generally highest for investments with longer
maturities.

* The risk that issuers of bonds we buy will not make timely payments of
interest and principal. This credit risk is generally higher for debt
that is below investment-grade in quality.

* The risk that, compared to other debt, mortgage-backed investments may
increase in value less when interest rates decline, and decline in value
more when interest rates rise.

* The risks of investing outside the United States, such as currency
fluctuations, economic or financial instability, lack of timely or
reliable financial information, or unfavorable political or legal
developments. These risks are increased for investments in emerging
markets.

* The risk that our allocation of investments between stocks and bonds may
adversely affect the fund's performance.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: vertical bar chart CALENDAR YEAR TOTAL RETURNS FOR
CLASS IB SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IB SHARES

1990 0.03%
1991 18.84%
1992 6.13%
1993 17.30%
1994 -2.64%
1995 24.92%
1996 15.45%
1997 19.49%
1998 13.53%

1999 11.76%

Year-to-date performance through 3/31/2000 was 0.96%. During the periods
shown in the bar chart, the highest return for a quarter was 14.57%
(quarter ending 12/31/98) and the lowest return for a quarter was - 10.30%
(quarter ending 9/30/98).

Average annual total returns (for periods ending 12/31/99)

Past Past Past
1 year 5 years 10 years

Class IB 11.76% 16.84% 12.12%
MSCI World Index 24.94% 19.76% 11.43%

The fund's performance is compared to the Morgan Stanley Capital
International (MSCI) World Index, an unmanaged index of global equity
securities, with all values expressed in U.S. dollars.

PUTNAM VT GLOBAL GROWTH FUND

GOAL

The fund seeks capital appreciation.

MAIN INVESTMENT STRATEGIES - GLOBAL GROWTH STOCKS

MAIN RISKS

* The risks of investing outside the United States, such as currency
fluctuations, economic or financial instability, lack of timely or
reliable financial information, or unfavorable political or legal
developments. These risks are increased for investments in emerging
markets.

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general
financial market conditions and factors related to a specific company or
industry . This risk is generally greater for small and midsized
companies, which tend to be more vulnerable to adverse developments.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: vertical bar chart CALENDAR YEAR TOTAL RETURNS
FOR CLASS IB SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IB SHARES

1991 14.84%
1992 -0.51%
1993 32.20%
1994 -1.11%
1995 15.50%
1996 17.03%
1997 14.16%
1998 29.65%

1999 64.56%

Year-to-date performance through 3/31/2000 was 4.60%. During the periods
shown in the bar chart, the highest return for a quarter was 47.91%
(quarter ending 12/31/99) and the lowest return for a quarter was - 12.18%
(quarter ending 9/30/98).

Average annual total returns (for periods ending 12/31/99)

Since
Past Past Inception
1 year 5 years (5/1/90)

Class IB 64.56% 26.90% 17.04%
MSCI World Index 24.94% 19.76% 13.82%
MSCI All-Country World Free 30.90% 12.39% 10.05%

PUTNAM VT GROWTH AND INCOME FUND

GOAL

The fund seeks capital growth and current income.

MAIN INVESTMENT STRATEGIES - VALUE STOCKS

MAIN RISKS

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general financial
market conditions and factors related to a specific company or industry.
This risk is generally greater for small and midsized companies, which
tend to be more vulnerable to adverse developments.

* The risk that movements in financial markets will adversely affect the
price of the fund's investments, regardless of how well the companies
in which we invest perform. The market as a whole may not favor the
types of investments we make.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: vertical bar chart CALENDAR YEAR TOTAL RETURNS FOR
CLASS IB SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IB SHARES

1990 1.81%
1991 18.87%
1992 9.59%
1993 14.09%
1994 0.20%
1995 36.51%
1996 21.73%
1997 23.96%
1998 15.29%

1999 1.47%

Year-to-date performance through 3/31/2000 was - 1.80%. During the periods
shown in the bar chart, the highest return for a quarter was 16.59%
(quarter ending 12/31/98) and the lowest return for a quarter was - 10.16%
(quarter ending 9/30/99).

Average annual total returns (for periods ending 12/31/99)

Since
Past Past Inception
1 year 5 years 10 years

Class IB 1.47% 19.23% 13.83%
S&P 500 Index 21.04% 28.56% 18.21%

The fund's performance is compared to the Standard & Poor's 500 Index, an
unmanaged index of common stocks frequently used as a general measure of
U.S. stock market performance.

PUTNAM VT GROWTH OPPORTUNITIES FUND

GOAL

The fund seeks capital appreciation.

MAIN INVESTMENT STRATEGIES - GROWTH STOCKS

MAIN RISKS

* The risk of loss from investing in fewer issuers than a fund that invests
more broadly. This vulnerability to factors affecting a single
investment can result in greater fund losses and volatility.

PERFORMANCE INFORMATION

Performance information will be available after the fund completes a full
calendar year of operation.

PUTNAM VT HEALTH SCIENCES FUND

GOAL

The fund seeks capital appreciation.

MAIN INVESTMENT STRATEGIES - GROWTH STOCKS

MAIN RISKS

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general financial
market conditions and factors related to a specific company or industry.
This risk is generally greater for small and midsized companies, which
tend to be more vulnerable to adverse developments.

* The risk of investing in a single group of industries. Investments in
the health sciences industries, even though representing interests in
different companies within these industries, may be affected by common
economic forces and other factors. This vulnerability to factors
affecting the health sciences industries is significantly greater than
for a fund that invests in a broader range of industries , and may
result in greater fund losses and volatility.

* The risk of loss from investing in fewer issuers than a fund that invests
more broadly. The fund is "non-diversified," which means that it may
invest more of its assets in the securities of fewer companies than a
"diversified" fund. This vulnerability to factors affecting a single
investment can result in greater fund losses and volatility.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: vertical bar chart CALENDAR YEAR TOTAL RETURNS FOR
CLASS IB SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IB SHARES

1999 -3.90

Year-to-date performance through 3/31/2000 was 14.38%. During the periods
shown in the bar chart, the highest return for a quarter was 9.20% (quarter
ending 12/31/99) and the lowest return for a quarter was -5.69% (quarter
ending 9/30/99).

Average annual total returns (for periods ending 12/31/99)

Since
Past Inception
1 year (4/30/98)

Class IB -3.90% 3.04%
S&P 500 Index 21.04% 19.80%

PUTNAM VT HIGH YIELD FUND

GOAL

The fund seeks high current income. Capital growth is a secondary goal
when consistent with high current income.

MAIN INVESTMENT STRATEGIES - LOWER-RATED BONDS

We invest mostly in bonds that

* are obligations of U.S. corporations,

* are below investment grade in quality (junk bonds), and

* have intermediate- to long-term maturities (three years or longer).

MAIN RISKS

* The risk that the issuers of the fund's investments will not make timely
payments of interest and principal. This credit risk is higher for
debt that is below investment grade in quality. Because the fund
invests mainly in junk bonds, this risk is heightened for the fund.
Investors should carefully consider the risks associated with an
investment in the fund.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: vertical bar chart CALENDAR YEAR TOTAL RETURNS FOR
CLASS IB SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IB SHARES

1990 -10.11%
1991 44.01%
1992 18.80%
1993 19.39%
1994 -1.08%
1995 18.14%
1996 12.64%
1997 14.17%
1998 -5.90%

1999 5.81%

Year-to-date performance through 3/31/2000 was - 0.55%. During the
periods shown in the bar chart, the highest return for a quarter was 19.74%
(quarter ending 3/31/91) and the lowest return for a quarter was - 9.95%
(quarter ending 9/30/98).

Average annual total returns (for periods ending 12/31/99)

Past Past Past
1 year 5 years 10 years

Class IB 5.81% 8.63% 10.69%
First Boston High Yield
Bond Index 3.28% 9.08% 11.06%

PUTNAM VT INCOME FUND

GOAL

The fund seeks current income consistent with preservation of capital.

MAIN INVESTMENT STRATEGIES - MULTI-SECTOR BONDS

We invest mostly in bonds that

* are obligations of corporations and governments worldwide denominated in
U.S. dollars,

* are a combination of investment grade and below investment-grade
securities (junk bonds), and

* have intermediate- to long-term maturities (three years or longer).

MAIN RISKS

* The risk that movements in financial markets will adversely affect the
value of the fund's investments. This risk includes interest rate
risk, which means that the prices of the fund's investments are likely
to fall if interest rates rise. Interest rate risk is generally highest
for investments with long maturities .

* The risk that the issuers of the fund's investments will fail to make
timely payments of interest and principal . This credit risk is higher
for debt that is below investment-grade quality. Because the fund
invests significantly in junk bonds, this risk is heightened for the
fund. Investors should carefully consider the risks associated with an
investment in the fund.

* The risk that , compared to other debt, mortgage-backed investments may
increase in value less when interest rates decline, and decline in value
more when interest rates rise.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: vertical bar chart CALENDAR YEAR TOTAL RETURNS FOR
CLASS IB SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IB SHARES

1990 7.35%
1991 17.10%
1992 7.33%
1993 11.11%
1994 -3.43%
1995 20.26%
1996 2.26%
1997 8.48%
1998 8.20%

1999 -2.16%

Year-to-date performance through 3/31/2000 was 1.28%. During the periods
shown in the bar chart, the highest return for a quarter was 6.74% (quarter
ending 6/30/95) and the lowest return for a quarter was -2.77% (quarter
ending 3/31/94).

Average annual total returns (for periods ending 12/31/99)

Past Past Past
1 year 5 years 10 years

Class IB -2.16% 7.15% 7.41%
Lehman Brothers
Aggregate Bond Index -0.82% 7.73% 7.70%

The fund's performance is compared to the Lehman Brothers Aggregate Bond
Index, an unmanaged index of investment-grade bonds.

PUTNAM VT INTERNATIONAL GROWTH FUND

GOAL

The fund seeks capital appreciation.

MAIN INVESTMENT STRATEGIES - INTERNATIONAL STOCKS

MAIN RISKS

* The risks of investing outside the United States, such as currency
fluctuations, economic or financial instability, lack of timely or
reliable financial information or unfavorable political or legal
developments in international markets. The risks are increased for
investments in emerging markets.

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general financial
market conditions and factors related to a specific company or industry.
This risk is generally greater for small and midsized companies, which
tend to be more vulnerable to adverse developments.

* The risk that movements in financial markets will adversely affect the
price of the fund's investments, regardless of how well the companies in
which we invest perform.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: vertical bar chart CALENDAR YEAR TOTAL RETURNS FOR
CLASS IB SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IB SHARES

1998 18.47%
1999 60.01%

Year-to-date performance through 3/31/2000 was 6.05%. During the periods
shown in the bar chart, the highest return for a quarter was 35.44%
(quarter ending 12/31/99) and the lowest return for a quarter was -18.92%
(quarter ending 9/30/98).

Average annual total returns (for periods ending 12/31/99)

Since
Past Inception

1 year (1/2/97)
Class IB 60.10% 30.16%
MSCI EAFE Index 26.96% 15.76%

The fund's performance benefited from Putnam Management's agreement to
limit the fund's expenses through the period ended December 31, 1998. The
fund's performance is compared to the Morgan Stanley Capital International
(MSCI) EAFE Index, an unmanaged index of equity securities from Europe,
Australia, and the Far East, with all values expressed in U.S. dollars.

PUTNAM VT INTERNATIONAL GROWTH AND INCOME FUND

GOAL

The fund seeks capital growth. Current income is a secondary objective.

MAIN INVESTMENT STRATEGIES - INTERNATIONAL VALUE STOCKS

MAIN RISKS

* The risks of investing outside the United States, such as currency
fluctuations, economic or financial instability, lack of timely or
reliable financial information, or unfavorable political or legal
developments. These risks are increased for investments in emerging
markets.

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general financial
market conditions and factors related to a specific company or industry.
This risk is generally greater for small and midsized companies, which
tend to be more vulnerable to adverse developments.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: vertical bar chart CALENDAR YEAR TOTAL RETURNS FOR
CLASS IB SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IB SHARES

1998 11.20%
1999 24.35%

Year-to-date performance through 3/31/2000 was 2.63%. During the periods
shown in the bar chart, the highest return for a quarter was 16.51%
(quarter ending 12/31/98) and the lowest return for a quarter was - 17.32%
(quarter ending 9/30/98).

Average annual total returns (for periods ending 12/31/99)

Since
Past Inception
1 year (1/2/97)

Class IB 24.35% 18.21%
MSCI EAFE Index 26.96% 15.76%

The fund's performance benefited from Putnam Management's agreement to
limit the fund's expenses through the period ended December 31, 1998. The
fund's performance is compared to the Morgan Stanley Capital International
(MSCI) EAFE Index, an unmanaged index of equity securities from Europe,
Australia, and the Far East, with all values expressed in U.S. dollars.

PUTNAM VT INTERNATIONAL NEW OPPORTUNITIES FUND

GOAL

The fund seeks long-term capital appreciation.

MAIN INVESTMENT STRATEGIES - INTERNATIONAL GROWTH STOCKS

MAIN RISKS

* The risks of investing outside the United States, such as currency
fluctuations, economic or financial instability, lack of timely or
reliable financial information, or unfavorable political or legal
developments. These risks are increased for investments in emerging
markets.

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance , including both general
financial market conditions and factors related to a specific company or
industry . This risk is generally greater for small and midsized
companies, which tend to be more vulnerable to adverse developments.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: vertical bar chart CALENDAR YEAR TOTAL RETURNS FOR
CLASS IB SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IB SHARES

1998 15.42%

1999 102.80%

Year-to-date performance through 3/31/2000 was 4.59%. During the periods
shown in the bar chart, the highest return for a quarter was 57.09%
(quarter ending 12/31/99) and the lowest return for a quarter was - 16.61%
(quarter ending 9/30/98).

Average annual total returns (for periods ending 12/31/99)

Since
Past Inception
1 year (1/2/97)

Class IB 102.80% 32.79%
MSCI EAFE Index 26.96% 15.76%

The fund's performance benefited from Putnam Management's agreement to
limit the fund's expenses through the period ended December 31, 1998. The
fund's performance is compared to the Morgan Stanley Capital International
(MSCI) EAFE Index, an unmanaged index of international equity securities
from Europe, Australia and the Far East, with all values expressed in U.S.
dollars.

PUTNAM VT INVESTORS FUND

GOAL

The fund seeks long-term growth of capital and any increased income that
results from this growth.

MAIN INVESTMENT STRATEGIES - GROWTH STOCKS

MAIN RISKS

* The risk that movements in financial markets will adversely affect the
price of the fund's investments, regardless of how well the companies
in which we invest perform. The market as a whole may not favor the
types of investments we make.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: vertical bar chart CALENDAR YEAR TOTAL RETURNS FOR
CLASS IB SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IB SHARES

1999 29.98%

Year-to-date performance through 3/31/2000 was 2.97%. During the periods
shown in the bar chart, the highest return for a quarter was 24.63%
(quarter ending 12/31/99) and the lowest return for a quarter was -5.01%
(quarter ending 9/30/99).

Average annual total returns (for periods ending 12/31/99)

Since
Past Inception
1 year (4/30/98)

Class IB 29.98% 28.23%
S&P 500 Index 21.04% 19.80%

PUTNAM VT MONEY MARKET FUND

GOAL

The fund seeks as high a rate of current income as Putnam Management
believes is consistent with preservation of capital and maintenance of
liquidity.

MAIN INVESTMENT STRATEGIES - INCOME

We seek to maintain a stable net asset asset value of $1.00 per share for
the fund.

We invest primarily in instruments that:

* are high quality and

* have a short-term maturity.

MAIN RISKS

* The risk that the value of your investment may be eroded over time by the
effects of inflation.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: vertical bar chart CALENDAR YEAR TOTAL RETURNS FOR
CLASS IB SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IB SHARES

1990 7.81%
1991 5.76%
1992 3.42%
1993 2.64%
1994 3.67%
1995 5.30%
1996 4.93%
1997 5.06%
1998 5.12%

1999 4.66%

Year-to-date performance through 3/31/2000 was 1.27%. During the periods
shown in the bar chart, the highest return for a quarter was 1.95%
(quarter ending 6/30/90) and the lowest return for a quarter was 0.80%
(quarter ending 9/30/92).

Average annual total returns (for periods ending 12/31/99)

Past Past Past
1 year 5 years 10 years

Class IB 4.66% 5.11% 4.85%
Merrill Lynch 91-Day
Treasury Bill Index 4.85% 5.35% 5.28%
Lipper Money Market
Average 4.49% 4.95% 4.80%

PUTNAM VT NEW OPPORTUNITIES FUND

GOAL

The fund seeks long-term capital appreciation.

MAIN INVESTMENT STRATEGIES - GROWTH STOCKS

MAIN RISKS

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general financial
market conditions and factors related to a specific company or industry.
This risk is generally greater for small and midsized companies, which
tend to be more vulnerable to adverse developments.

* The risk that movements in financial markets will adversely affect the
price of the fund's investments, regardless of how well the companies
in which we invest perform. The market as a whole may not favor the
types of investments we make.

* The risk of investing in a limited group of market sectors. The
vulnerability of the fund to factors affecting the sectors chosen may be
significantly greater than that of a fund that invests in a broader
range of sectors and may result in greater fund losses and volatility.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: vertical bar chart CALENDAR YEAR TOTAL RETURNS FOR
CLASS IB SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IB SHARES

1995 44.65%
1996 10.01%
1997 23.10%
1998 24.22%

1999 69.10%

Year-to-date performance through 3/31/2000 was 15.27%. During the
periods shown in the bar chart, the highest return for a quarter was
49.43% (quarter ending 12/31/99) and the lowest return for a quarter was
- -18.85% (quarter ending 9/30/98).

Average annual total returns (for periods ending 12/31/99)

Since
Past Past Inception
1 year 5 years (5/2/94)

Class IB 69.10% 32.69% 30.17%
Russell Midcap Growth Index 18.23% 21.86% 24.61%
S&P 500 Index 21.04% 28.56% 25.66%

PUTNAM VT NEW VALUE FUND

GOAL

The fund seeks long-term capital appreciation.

MAIN INVESTMENT STRATEGIES - VALUE STOCKS

We invest mainly in common stocks of U.S. companies with a focus on value
stocks. Value stocks are those we believe are currently undervalued by the
market. We look for companies undergoing positive change. If we are
correct and other investors recognize the value of the company, the price
of the stock may rise. We invest mainly in midsized and large companies.

MAIN RISKS

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general
financial market conditions and factors related to a specific company or
industry. This risk is generally greater for small and midsized
companies, which tend to be more vulnerable to adverse developments.

* The risk that movements in financial markets will adversely affect the
price of the fund's investments, regardless of how well the companies
in which we invest perform. The market as a whole may not favor the
types of investments we make.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: vertical bar chart CALENDAR YEAR TOTAL RETURNS FOR
CLASS IB SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IB SHARES

1998 6.11%

1999 0.26%

Year-to-date performance through 3/31/2000 was -0.58%. During the periods
shown in the bar chart, the highest return for a quarter was 16.34%
(quarter ending 12/31/98) and the lowest return for a quarter was -13.68%
(quarter ending 9/30/99).

Average annual total returns (for periods ending 12/31/99)

Since
Past Inception
1 year (1/2/97)

Class IB 0.26% 7.72%
S&P 500 Index 21.04% 24.77%

PUTNAM VT OTC & EMERGING GROWTH FUND

GOAL

The fund seeks capital appreciation.

MAIN INVESTMENT STRATEGIES - GROWTH STOCKS

MAIN RISKS

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general
financial market conditions and factors related to a specific company or
industry. This risk is generally greater for small and midsized
companies, which tend to be more vulnerable to adverse developments.

* The risk that movements in financial markets will adversely affect the
price of the fund's investments, regardless of how well the companies
in which we invest perform. The market as a whole may not favor the
types of investments we make.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: vertical bar chart CALENDAR YEAR TOTAL RETURNS FOR
CLASS IB SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IB SHARES

1999 126.45%

Year-to-date performance through 3/31/2000 was 10.49%. During the periods
shown in the bar chart, the highest return for a quarter was 76.26%
(quarter ending 12/31/99) and the lowest return for a quarter was 8.04%
(quarter ending 3/31/99).

Average annual total returns (for periods ending 12/31/99)

Since
Past Inception
1 year (4/30/98)

Class IB 126.45% 63.94%
Russell 2000 Growth Index 43.09% 16.30%

The fund's performance benefited from Putnam Management's agreement to
limit the fund's expenses through the period ended December 31, 1999. The
fund's performance is compared to the Russell 2000 Growth Index, an
unmanaged index composed of securities with greater-than-average growth
orientation within the Russell 2000 Index.

PUTNAM VT RESEARCH FUND

GOAL

The fund seeks capital appreciation.

MAIN INVESTMENT STRATEGIES - GROWTH AND VALUE STOCKS

MAIN RISKS

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general
financial market conditions and factors related to a specific company or
industry. This risk is generally greater for small and midsized
companies, which tend to be more vulnerable to adverse developments.

* The risk that movements in financial markets will adversely affect the
price of the fund's investments, regardless of how well the companies
in which we invest perform.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: vertical bar chart CALENDAR YEAR TOTAL RETURNS FOR
CLASS IB SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IB SHARES

1998 19.48%
1999 27.58%

Year-to-date performance through 3/31/2000 was 4.33%. During the periods
shown in the bar chart, the highest return for a quarter was 20.13%
(quarter ending 12/31/99) and the lowest return for a quarter was -5.36%
(quarter ending 9/30/99).

Average annual total returns (for periods ending 12/31/99)

Since
Past Inception
1 year (9/30/98)

Class IB 27.69% 39.93%
S&P 500 Index 21.04% 35.93%

PUTNAM VT SMALL CAP VALUE FUND

GOAL

The fund seeks capital appreciation.

MAIN INVESTMENT STRATEGIES - VALUE STOCKS

MAIN RISKS

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general
financial market conditions and fact ors related to a specific company
or industry. This risk is generally greater for small
and midsized companies, which tend to be more vulnerable to adverse
developments.

* The risk that movements in financial markets will adversely affect the
price of the fund's investments, regardless of how well the companies
in which we invest perform. The market as a whole may not favor the
types of investments we make.

PERFORMANCE INFORMATION

Performance information will be available after the fund completes a full
calendar year of operation.

PUTNAM VT UTILITIES GROWTH AND INCOME FUND

GOAL

The fund seeks capital growth and current income.

MAIN INVESTMENT STRATEGIES - VALUE STOCKS AND BONDS

MAIN RISKS

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general
financial market conditions and factors related to a specific company or
industry . This risk is generally greater for small and midsized
companies, which tend to be more vulnerable to adverse developments.

* The risk that movements in financial markets will adversely affect the
price of the fund's investments, regardless of how well the companies
in which we invest perform. The market as a whole may not favor the
types of investments we make.

* The risk of investing in a single group of industries. Investments in the
utilities industries, even though representing interests in different
companies within these industries, may be affected by common economic
forces and other factors. This vulnerability to factors affecting the
utilities industries is significantly greater than for a fund that
invests in a broader range of industries, and may result in greater fund
losses and volatility.

* The risk that prices of bonds we buy will fall if interest rates rise.
Interest rate risk is generally higher for investments with longer
maturities.

* The risk that issuers of bonds we buy will not make timely payments of
interest and principal. This credit risk is generally higher for debt
that is below investment-grade in quality.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: vertical bar chart CALENDAR YEAR TOTAL RETURNS FOR
CLASS IB SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IB SHARES

1993 13.25%
1994 -7.16%
1995 30.88%
1996 15.62%
1997 26.91%

1998 14.86%
1999 -0.79%

Year-to-date performance through 3/31/2000 was 2.32%. During the periods
shown in the bar chart, the highest return for a quarter was 12.28%
(quarter ending 12/31/97) and the lowest return for a quarter was - 7.81%
(quarter ending 3/31/99).

Average annual total returns (for periods ending 12/31/99)

Since
Past Past Inception
1 year 5 years (5/4/92)

Class IB -0.79% 16.97% 12.46%
S&P Utilities Index -8.88% 13.66% 11.07%
S&P 500 Index 21.04% 28.56% 20.58%

PUTNAM VT VISTA FUND

GOAL

The fund seeks capital appreciation.

MAIN INVESTMENT STRATEGIES - GROWTH STOCKS

MAIN RISKS

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general
financial market conditions and factors related to a specific company or
industry. This risk is generally greater for small and midsized
companies, which tend to be more vulnerable to adverse developments.

* The risk that movements in financial markets will adversely affect the
price of the fund's investments, regardless of how well the companies
in which we invest perform. The market as a whole may not favor the
types of investments we make.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: vertical bar chart CALENDAR YEAR TOTAL RETURNS FOR
CLASS IB SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IB SHARES

1998 19.50%

1999 52.59%

Year-to-date performance through 3/31/2000 was 21.21%. During the
periods shown in the bar chart, the highest return for a quarter was
41.27% (quarter ending 12/31/99) and the lowest return for a quarter was
- -17.29% (quarter ending 9/30/98).

Average annual total returns (for periods ending 12/31/99)

Since
Past Inception
1 year (1/2/97)

Class IB 52.59% 31.02%
Russell Midcap Growth Index 51.29% 29.79%
S&P 500 Index 21.04% 27.58%

The fund's performance benefited from Putnam Management's agreement to
limit the fund's expenses through the period ended December 31, 1998. The
fund's performance is compared to the Standard & Poor's 500 Index, an
unmanaged index of common stocks frequently used as a general measure of
U.S. stock market performance. The fund's performance is also compared to
the Russell Midcap Growth Index, an unmanaged index that measures the
performance of those companies in the Russell Midcap Index that have higher
prices relative to the book value of their assets and higher forecasted
growth rates. The Russell Midcap Growth Index is replacing the S&P 500
Index because Putnam Management believes the Russell Midcap Growth Index is
a more appropriate index against which to compare the fund's performance.

PUTNAM VT VOYAGER FUND

GOAL

The fund seeks capital appreciation.

MAIN INVESTMENT STRATEGIES - GROWTH STOCKS

MAIN RISKS

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general
financial market conditions and factors related to a specific company or
industry. This risk is generally greater for small and midsized
companies, which tend to be more vulnerable to adverse developments.

* The risk that movements in financial markets will adversely affect the
price of the fund's investments, regardless of how well the companies
in which we invest perform. The market as a whole may not favor the
types of investments we make.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: vertical bar chart CALENDAR YEAR TOTAL RETURNS
FOR CLASS IB SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IB SHARES

1990 -2.18%
1991 45.87%
1992 10.19%
1993 18.92%
1994 0.89%
1995 40.46%
1996 12.80%
1997 26.33%
1998 24.19%

1999 58.01%

Year-to-date performance through 3/31/2000 was 10.80%. During the
periods shown in the bar chart, the highest return for a quarter was
41.32% (quarter ending 12/31/99) and the lowest return for a quarter was
- -17.39% (quarter ending 9/30/90).

Average annual total returns (for periods ending 12/31/99)

Past Past Past
1 year 5 years 10 years

Class IB 58.01% 31.47% 22.14%
Russell Midcap Growth Index 51.29% 28.03% 18.96%
S&P 500 Index 21.04% 28.56% 18.21%

The fund's performance is compared to the Standard & Poor's 500 Index, an
unmanaged index of common stocks frequently used as a general measure of
U.S. stock market performance. The fund's performance is also compared to
to the Russell Midcap Growth Index, an unmanaged index of common stocks of
midsized companies that are also included on the Russell 1000 Growth Index.
The Russell Midcap Growth Index has been added because Putnam Management
believes this index is an appropriate index against which to compare the
fund's performance.

What are the funds' main investment strategies and related risks?

Foreign investments. Each of the funds may invest in securities of foreign
issuers. Foreign investments involve certain special risks, including

* Limited legal recourse: Legal remedies for investors may be more limited
than the remedies available in the United States.

* Limited markets: Certain foreign investments may be less liquid (harder to
buy and sell) and more volatile than U.S. investments, which means we
may at times be unable to sell these foreign investments at desirable
prices. For the same reason, we may at times find it difficult to
value the fund's foreign investments.

* Trading practices: Brokerage commissions and other fees are generally
higher for foreign investments than for U.S. investments. The
procedures and rules governing foreign transactions and custody may
also involve delays in payment, delivery or recovery of money or
investments.

* Sovereign issuers: The willingness and ability of sovereign issuers to
pay principal and interest on government securities depends on various
economic factors, including the issuer's balance of payments, overall
debt level, and cash flow from tax or other revenues.

For Putnam VT Income Fund, we may invest in U.S. dollar denominated
fixed-income securities of foreign issuers, including Yankee bonds.

For Putnam VT Money Market Fund, we may invest in money market instruments
of foreign issuers that are denominated in U.S. dollars.

We will consider, among other things, credit, interest rate and prepayment
risks as well as general market conditions when deciding whether to buy or
sell investments.

* Interest rate risk. The values of bonds and other debt usually rise and
fall in response to changes in interest rates. Declining interest rates
generally increase the value of existing debt instruments, and rising
interest rates generally decrease the value of existing debt
instruments. Changes in a debt instrument's value usually will not
affect the amount of interest income paid to the fund, but will affect
the value of the fund's shares. Interest rate risk is generally
greater for investments with longer maturities.

For Putnam VT Money Market Fund, average portfolio maturity will not exceed
90 days and the fund may not hold an investment with more than 397 days
remaining to maturity. These short-term investments generally have
lower yields than longer-term investments. Some investments
have an interest rate that changes based on a market
interest rate, and allow the holder to demand payment of principal and
accrued interest before the scheduled maturity date. We measure the
maturity of these obligations using the relatively short period in which
payment could be demanded. Because the interest rate on these
investments can change as market interest rates change, these
investments are unlikely to be able to lock in favorable longer term
interest rates.

* Credit risk. Investors normally expect to be compensated
in proportion to the risk they are assuming. Thus, debt of
issuers with poor credit usually offers higher yields than debt of
issuers with more secure credit. Higher-rated investments generally
have lower-credit risk.

For Putnam VT Money Market Fund , we buy only high quality investments.
These are:

* rated in one of the two highest categories by at least two nationally
recognized rating services,

* rated by one rating service in one of the service's two highest categories
(if only one rating service has provided a rating), or

* unrated investments that we determine are of equivalent quality.

* Prepayment risk. Traditional debt investments typically pay a fixed rate
of interest until maturity, when the entire principal amount is due. By
contrast, payments on mortgage-backed investments typically include both
interest and partial payment of principal. Principal may also be
prepaid voluntarily, or as a result of refinancing or foreclosure. We
may have to invest the proceeds from prepaid investments in other
investments with less attractive terms and yields. Compared to debt
that cannot be prepaid, mortgage-backed investments are less likely to
increase in value during periods of declining interest rates and have a
higher risk of decline in value during periods of rising interest rates.
They may increase the volatility of a fund. Some mortgage-backed
investments receive only the interest portion or the principal portion
of payments on the underlying mortgages. The yields and values of
these investments are extremely sensitive to changes in interest rates
and in the rate of principal payments on the underlying mortgages. The
market for these investments may be volatile and limited, which may make
them difficult to buy or sell.

Money market instruments. These include certificates of deposit,
commercial paper, U.S. government debt and repurchase agreements, corporate
obligations and bankers acceptances. For VT Money Market Fund, we buy
bankers acceptances only if they are issued by banks with deposits in
excess of $2 billion (or the foreign currency equivalent) at the close of
the last calendar year. If the Trustees change this minimum deposit
requirement, shareholders would be notified.

Frequent trading. We may buy and sell investments relatively often,
which involves higher brokerage commissions and other expenses.

Other investments. In addition to the main investment strategies described
above, we may make other investments, which may be subject to other
risks as described in the SAI.

Changes in policies. The Trust's Trustees may change any of the funds'
goals, investment strategies and other policies without shareholder
approval, except as otherwise indicated.

Who manages the funds?

Management
Putnam VT Fund Fees
Putnam VT Asia Pacific Growth Fund 0.80%
Putnam VT Diversified Income Fund 0.68%
Putnam VT The George Putnam Fund of Boston 0.65%
Putnam VT Global Asset Allocation 0.65%
Putnam VT Global Growth Fund 0.61%
Putnam VT Growth and Income Fund 0.46%
Putnam VT Health Sciences Fund 0.70%
Putnam VT High Yield Fund 0.65%
Putnam VT Income Fund 0.60%
Putnam VT International Growth 0.80%
Putnam VT International Growth and Income Fund 0.80%
Putnam VT International New Opportunities Fund 1.08%
Putnam VT Investors Fund 0.63%
Putnam VT Money Market Fund 0.41%
Putnam VT New Opportunities Fund 0.54%
Putnam VT New Value Fund 0.70%
Putnam VT OTC & Emerging Growth Fund* 0.53%
Putnam VT Research Fund* 0.54%
Putnam VT Utilities Growth and Income Fund 0.65%
Putnam VT Vista Fund 0.65%
Putnam VT Voyager Fund 0.53%

* The management fees shown in the table reflect an expense limitation
then in effect or currently in effect. In the absence of an expense
limitation, management fees would have been:

Putnam VT OTC & Emerging Growth Fund 0.70%
Putnam VT Research Fund 0.65%

The following funds paid Putnam Management a quarterly management fee for
these services at the annual rate of:

Fund name Year Business experience (at least 5 years)
<S> <C> <C>
Putnam VT American Government Income Fund

Kevin M. Cronin 2000 1997-Present Putnam Management
Managing Director Prior to February 1997 MFS Investment
Management

Michael Martino 2000 1994-Present Putnam Management
Managing Director

Putnam VT Asia Pacific Growth Fund

Paul Warren 1997 1997-Present Putnam Management
Senior Vice President Prior to May 1997 IDS Fund Management

Carmel Peters 1999 1997-Present Putnam Management
Senior Vice President Prior to May 1997 Wheelock Natwest
Investment
Management, Hong Kong
Prior to February 1996 Rothschild Asset
Management
Asia Pacific,
Hong Kong
Putnam VT Diversified Income Fund

David L. Waldman 1998 1997-Present Putnam Management
Managing Director Prior to June 1997 Lazard Freres

The Core Fixed Income Team

Putnam VT The George Putnam Fund of Boston

David L. King 2000 1983-Present Putnam Management
Managing Director

Jeanne L. Mockard 2000 1990-Present Putnam Management
Senior Vice President

James M. Prusko 1998 1992-Present Putnam Management
Senior Vice President

The Core Fixed Income Team

Putnam VT Global Asset Allocation
The Global Asset
Allocation Committee

Putnam VT Global Growth Fund

Robert J. Swift 1996 1995-Present Putnam Management
Managing Director Prior to August 1995 IAI
International/Hill
Samuel Investment
Advisors

Kelly A. Morgan 1997 1996-Present Putnam Management
Managing Director Prior to December 1996 Alliance Capital
Management L.P.

Lisa H. Svensson 1998 1994-Present Putnam Management
Senior Vice President Prior to July 1994 Lord Abbett & Co.

Manuel Weiss 1998 1987-Present Putnam Management
Senior Vice President

Stephen P. Dexter 2000 1999-Present Putnam Management
Senior Vice President Prior to June 1999 Scudder Kemper Inc.

Putnam VT Growth and Income Fund

David L. King 1993 1983-Present Putnam Management
Managing Director

Hugh H. Mullin 1998 1986-Present Putnam Management
Senior Vice President

Sheldon N. Simon 1997 1984-Present Putnam Management
Senior Vice President

Putnam VT Growth Opportunities Fund

C. Beth Cotner 2000 1995-Present Putnam Management
Managing Director Prior to September 1995 Kemper Financial
Services

Jeffery R. Lindsey 2000 1994-Present Putnam Management
Senior Vice President

David J. Santos 2000 1986-Present Putnam Management
Senior Vice President

Putnam VT Health Sciences Fund

Richard B. England 1998 1992-Present Putnam Management
Senior Vice President

David G. Carlson 1998 1992-Present Putnam Management
Senior Vice President

Margery C. Parker 1998 1997-Present Putnam Management
Senior Vice President Prior to December 1997 Keystone Investments

Putnam VT High Yield Fund

Krishna K. Memani 1999 1998-Present Putnam Management
Managing Director Prior to September 1998 Morgan Stanley & Co.

The Credit Team

Putnam VT Income Fund

James M. Prusko 2000 1992-Present Putnam Management
Senior Vice President

The Core Fixed Income Team

Putnam VT International Growth Fund

Justin M. Scott 1996 1988-Present Putnam Management
Managing Director

Omid Kamshad 1996 1996-Present Putnam Management
Managing Director Prior to January 1996 Lombard Odier
International

Mark D. Pollard 1999 1990-Present Putnam Management
Managing Director

Paul C. Warren 1999 1997-Prsent Putnam Management
Senior Vice President Prior to May 1997 IDS Fund Management

Joshua L. Byrne 2000 1993-Present Putnam Management
Senior Vice President

Putnam VT International Growth and Income Fund

Deborah F. Kuenstner 1999 1997-Present Putnam Management
Managing Director Prior to May 1997 DuPont Pension
Fund Investment

George Stairs 1999 1994-Present Putnam Management
Senior Vice President Prior to July 1994 Value Quest Ltd.

Putnam VT International New Opportunities Fund

Robert J. Swift 1996 1995-Present Putnam Management
Managing Director Prior to August 1995 IAI International/
Hill Samuel Investment
Advisors

Carmel Peters 1999 1997-Present Putnam Management
Senior Vice President Prior to May 1997 Wheelock Natwest
Investment Management,
Hong Kong
Prior to February 1996 Rothschild Asset
Management Asia Pacific,
Hong Kong

Stephen P. Dexter 1999 1999-Present Putnam Management
Senior Vice President Prior to June 1999 Scudder Kemper Inc.

Putnam VT Investors Fund

C. Beth Cotner 1998 1995-Present Putnam Management
Senior Vice President Prior to September 1995 Kemper Financial Services

Richard B. England 1998 1992-Present Putnam Management
Senior Vice President

Manuel H. Weiss 1998 1987-Present Putnam Management
Senior Vice President

Putnam VT New Opportunities Fund

Daniel L. Miller 1994 1983-Present Putnam Management
Managing Director

Jeffrey R. Lindsey 1999 1994-Present Putnam Management
Senior Vice President

Kenneth Lang 1999 1997-Present Putnam Management
Vice President Prior to April 1997 Montgomery Securities

Putnam VT New Value Fund

David L. King 1996 1983-Present Putnam Management
Managing Director

Putnam VT OTC & Emerging Growth Fund

Steven L. Kirson 1998 1989-Present Putnam Management
Senior Vice President

Michael J. Mufson 1998 1993-Present Putnam Management
Senior Vice President Putnam VT Research
Fund

The Global Equity
Research Team

Putnam VT Small Cap Value Fund

Edward T. Shadek, Jr. 1999 1997-Present Putnam Management
Managing Director Prior to March 1997 Newbold's Asset
Management Co.

Jeffrey Netols 1999 1993-Present Putnam Management
Senior Vice President

Putnam VT Utilities Growth and Income Fund

Krishna K. Memani 1999 1998-Present Putnam Management
Managing Director Prior to September 1998 Morgan Stanley & Co.

Jeanne L. Mockard 1998 1990-Present Putnam Management
Senior Vice President

The Credit Team

Putnam VT Vista Fund

Eric Wetlaufer 1997 1997-Present Putnam Management
Managing Director Prior to November 1997 Cadence Capital
Management

Anthony C. Santosus 1996 1985-Present Putnam Management
Senior Vice President

Margery C. Parker 1998 1997-Present Putnam Management
Senior Vice President Prior to December 1997 Keystone Investments

Dana Clark 1999 1987-Present Putnam Management
Vice President

Putnam VT Voyager Fund

Robert R. Beck 1995 1989-Present Putnam Management
Managing Director

Roland W. Gillis 1995 1995-Present Putnam Management
Managing Director Prior to March 1995 Keystone Custodian
Funds, Inc.

Michael P. Stack 1997 1997-Present Putnam Management
Senior Vice President Prior to November 1997 Independence Investment
Associates, Inc.

Charles H. Swanberg 1994 1984-Present Putnam Management
Senior Vice President

Paul Marrkand 2000 1987-Present Putnam Management
Senior Vice President

</TABLE>

How to buy and sell fund shares

Distribution Plan

The Trust has adopted a Distribution Plan with respect to class IB shares
to compensate Putnam Mutual Funds for services provided and expenses
incurred by it as principal underwriter of the class IB shares, including
the payments to insurance companies and their affiliated dealers mentioned
below. The plans provide for payments by each fund to Putnam Mutual Funds
at the annual rate (expressed as a percentage of average net assets) of up
to 0.35% on class IB shares. The Trustees currently limit payments on
class IB shares to 0.15% of average net assets.

Putnam Mutual Funds compensates insurance companies (or affiliated
broker-dealers) whose separate accounts invest in the Trust through class
IB shares for providing services to their contract holders investing in the
Trust.

Putnam Mutual Funds makes quarterly payments to dealers at the annual rate
of up to 0.15% of the average net asset value of class IB shares.

Putnam Mutual Funds may suspend or modify its payments to dealers. The
payments are also subject to the continuation of the Distribution Plan, the
terms of service agreements between dealers and Putnam Mutual Funds, and
any applicable limits imposed by the National Association of Securities
Dealers, Inc.

How do the funds price their shares?

Fund distributions and taxes

Fund investments in foreign securities may be subject to withholding taxes
at the source on dividend or interest payments. In that case, a fund's
yield on those securities would be decreased.

Financial highlights

Financial Highlights

Investment Operations

Net Asset Net Realized
Value, Net and Unrealized Total from
Beginning Investment Gain (Loss) on Investment
Period ended of Period Income (Loss) Investments operations
<S> <C> <C> <C> <C>
Putnam VT Asia Pacific Growth Fund

1999 $8.33 $(.08)(a) $9.00 $8.92
1998***** 8.57 (.01)(a) (.23) (.24)

Putnam VT Diversified Income Fund

1999 $10.47 $.78(a) $(.62) $.16
1998**** 10.95 .62(a) (1.10) (.48)

Putnam VT The George Putnam Fund of Boston

1999 $10.28 $.30(a) $(.34) $(.04)
1998***** 10.00 .17(a)(b) .20 .37

Putnam VT Global Asset Allocation Fund

1999 $18.95 $.39(a) $1.69 $2.08
1998***** 18.16 .33(a) .46 .79

Putnam VT Global Growth Fund

1999 $20.28 $(.10)(a) $12.08 $11.98
1998***** 18.03 (.05)(a) 2.30 2.25

Putnam VT Growth and Income Fund

1999 $28.75 $.41(a) $.04 $.45
1998**** 28.02 .26(a) .47 .73

Putnam VT Health Sciences Fund

1999 $10.93 $--(a) $(.43) $(.43)
1998***** 10.00 (.01)(a)(b) .95 .94

Putnam VT High Yield Fund

1999 $11.70 $1.11(a) $(.47) $.64
1998***** 12.99 .79(a) (2.08) (1.29)

Putnam VT Income Fund

1999 $13.73 $.76(a) $(1.04) $(.28)
1998***** 12.88 .50(a) .35 .85

Putnam VT International Growth Fund

1999 $13.51 $.05(a) $8.07 $8.12
1998***** 13.44 (.04)(a) .15 .11

Putnam VT International Growth and
Income Fund

1999 $12.24 $.15(a) $2.83 $2.98
1998**** 13.36 (.01)(a) (.57) (.58)

Putnam VT International New Opportunities
Fund

1999 $11.48 $(.16)(a) $11.96 $11.80
1998***** 11.39 (.05)(a)(b) .14 .09

Putnam VT Investors Fund

1999 $11.64 $(.01)(a) $3.50 $3.49
1998***** 10.00 .01(a)(b) 1.64 1.65

Putnam VT Money Market Fund

1999 $1.00 $.0460 $-- $.0460
1998***** 1.00 .0338(a) - .0338 (.0338)

Putnam VT New Opportunities Fund

1999 $26.04 $(.15)(a) $17.92 $17.77
1998***** 23.94 (.05)(a) 2.15 2.10

Putnam VT New Value Fund

1999 $12.02 $.17(a) $(.13) $.04
1998***** 11.91 .13(a) .13 .26

Putnam VT OTC & Emerging Growth Fund

1999 $10.08 $(.10)(a)(b) $12.84 $12.74
1998***** 10.00 .(03)(a)(b) .11 .08

Putnam VT Research Fund

1999 $11.90 $.02(a)(b) $3.23 $3.25
1998****** 10.00 .02(a)(b) 1.90 1.92

Putnam VT Small Cap Value Fund

1999******* $10.00 $(.03)(a) $.37 $.34

Putnam VT Utilities Growth and Income Fund

1999 $18.19 $.47(a) $(.69) $(.22)
1998***** 16.19 .29(a) 1.71 2.00

Putnam VT Vista Fund

1999 $14.73 $(.07)(a) $7.62 $7.55
1998***** 13.76 (.02)(a) .99 .97

Putnam VT Voyager Fund

1999 $45.81 $(.10)(a) $24.62 $24.52
1998***** 41.55 (.01)(a) 4.27 4.26

</TABLE>

Financial Highlights (continued)

Less Distributions:

From net In excess of
From net Realized Net Realized From
Investment Gain on Gain on Return of
Period ended Income Investments Investments Capital
<S> <C> <C> <C> <C>
Putnam VT Asia Pacific Growth Fund

1999 $-- $-- $-- $--
1998***** -- -- -- --

Putnam VT Diversified Income Fund

1999 $(.73) $-- $-- $--
1998**** -- -- -- --

Putnam VT The George Putnam Fund of Boston

1999 $(.23) $(.02) $-- $(.01)
1998***** (.09) -- -- --

Putnam VT Global Asset Allocation Fund

1999 $(.37) $(1.06) $-- $--
1998***** -- -- -- --

Putnam VT Global Growth Fund

1999 $(.08) $(1.77) $-- $--
1998***** -- -- -- --

Putnam VT Growth and Income Fund

1999 $(.41) $(2.04) $-- $--
1998**** -- -- -- --

Putnam VT Health Sciences Fund

1999 $--(e) $-- $-- $--
1998***** (.01) -- --(e) --

Putnam VT High Yield Fund

1999 $(1.26) $-- $-- $--
1998***** -- -- -- --

Putnam VT Income Fund

1999 $(.73) $(.21) $-- $--
1998***** -- -- -- --

Putnam VT International Growth Fund

1999 $-- $-- $-- $--
1998***** (.03) -- (.01) --

Putnam VT International Growth and
Income Fund

1999 $-- $-- $-- $--
1998**** (.11) (.19) (.18) (.06)

Putnam VT International New Opportunities
Fund

1999 $--(e) $-- $-- $--
1998***** -- -- -- --

Putnam VT Investors Fund

1999 $-- $-- $-- $--
1998***** (.01) -- -- --(e)

Putnam VT Money Market Fund

1999 $(.0460) $-- $-- $--
1998***** -- -- -- --

Putnam VT New Opportunities Fund

1999 $-- $(.37) $-- $--
1998***** -- -- -- --

Putnam VT New Value Fund

1999 $-- $(.21) $-- $--
1998***** (.13) (.02) -- --(e)

Putnam VT OTC & Emerging Growth Fund

1999 $-- $(.06) $-- $--
1998***** -- -- -- --

Putnam VT Research Fund

1999 $(.02) $(.46) $-- $--
1998****** (.01) (.01) -- --

Putnam VT Small Cap Value Fund

1999******* $-- $-- $(.03) $(.01)

Putnam VT Utilities Growth and Income Fund

1999 $(.50) $(.52) $-- $--
1998***** -- -- -- --

Putnam VT Vista Fund

1999 $-- $(1.63) $-- $--
1998***** -- -- -- --

Putnam VT Voyager Fund

1999 $(.05) $4.17 $-- $--
1998***** -- -- -- --

</TABLE>

Total
Investment
Net Asset Return at Net Assets
Total Value, End Net Asset End of Period
Distributions of Period Value(%)(c) (in thousands)
<S> <C> <C> <C> <C>

Putnam VT Asia Pacific Growth Fund

1999 $-- $17.25 107.08 $6,866
1998***** -- 8.33 (2.80)* 111

Putnam VT Diversified Income Fund

1999 $(.73) $9.90 1.65 $23,182
1998**** -- 10.47 (4.38)* 1,963

Putnam VT The George Putnam Fund
of Boston

1999 $(.26) $9.98 (.41) $38,566
1998***** (.09) 10.28 3.69* 1,924

Putnam VT Global Asset Allocation
Fund

1999 $(1.43) $19.60 11.76 $6,617
1998***** -- 18.95 4.35* 1,319

Putnam VT Global Growth Fund

1999 $(1.85) $30.41 64.56 $28,909
1998***** -- 20.28 12.48* 823

Putnam VT Growth and Income Fund

1999 $(2.45) $26.75 1.47 $162,112
1998**** -- 28.75 2.61* 7,583

Putnam VT Health Sciences Fund

1999 $--(e) $10.50 (3.90) $20,162
1998***** (.01) 10.93 9.40* 2,129

Putnam High Yield Fund

1999 $(1.26) $11.08 5.81 $17,646
1998***** -- 11.70 (9.93)* 1,840

Putnam VT Income
1999 $(.94) $12.51 (2.16) $18,116
1998***** -- 13.73 6.60* 2,288

Putnam VT International Growth
Fund

1999 $-- $21.63 60.10 $40,448
1998***** (.04) 13.51 .81* 1,234

Putnam VT International Growth and Income Fund

1999 $-- $15.22 24.35 $10,652
1998**** (.54) 12.24 (4.24)* 926

Putnam VT International New Opportunities Fund

1999 $--(e) $23.28 102.80 $33,554
1998***** -- 11.48 .79* 85

Putnam VT Investors Fund

1999 $-- $15.13 29.98 $101,795
1998***** (.01) 11.64 16.54* 2,619

Putnam VT Money Market Fund

1999 $(.0460) $1.00 4.66 $41,516
1998***** (.0338) 1.00 3.42* 13,188

Putnam VT New Opportunities Fund

1999 $(.37) $43.44 69.10 $62,977
1998***** -- 26.04 8.77* 1,359

Putnam VT New Value Fund

1999 $(.21) $11.85 .26 $9,541
1998***** (.15) 12.02 2.28* 414

Putnam VT OTC & Emerging Growth Fund

1999 $(.06) $22.76 126.45 $24,432
1998***** -- 10.08 .82* 541

Putnam VT Research Fund
Fund

1999 $(.48) $14.67 27.69 $26,210
1998****** (.02) 11.90 19.19* 255

Putnam Small Cap Value Fund

1999******* $(.04) $10.30 3.37* $6,384

Putnam VT Utilities
Growth and Income Fund

1999 (1.02) $16.95 (0.79) $11,337
1998***** -- 18.19 12.35* 1,799

Putnam Vista Fund

1999 $(1.63) $20.65 52.59 $37,506
1998***** -- 14.73 7.05* 851

Putnam VT Voyager Fund

1999 $(4.22) $66.11 58.01 $155,889
1998***** -- 45.81 10.25* 4,332

Ratio of Net
Ratio of Investment
Expenses to Income (Loss) to
Average Net Average Net Portfolio
Assets(%)(d) Assets(%) Turnover (%)
<S> <C> <C> <C>

Putnam VT Asia Pacific
Growth Fund

1999 1.28 (.64) 145.51
1998***** .85* (.10)* 136.49

Putnam VT Diversified
Income Fund

1999 .93 7.67 117.02
1998**** .69* 5.74* 186.80

Putnam VT The George
Putnam Fund
of Boston

1999 .98 3.00 173.41
1998***** .67(b)* 1.74(b)* 99.85*

Putnam VT Global Asset
Allocation
Fund

1999 .92 2.15 149.82
1998***** .63* 1.82* 133.80

Putnam VT Global
Growth Fund

1999 .88 (.43) 154.88
1998***** .59* (.34)* 164.56

Putnam VT Growth and
Income Fund

1999 .65 1.55 53.68
1998**** .49* 1.20* 63.62

Putnam VT Health
Sciences Fund

1999 .98 (.01) 82.45
1998***** .71(b)* (.11)(b)* 39.68*

Putnam High
Yield Fund

1999 .87 10.01 52.96
1998***** .58* 7.63* 52.00

Putnam VT Income
1999 .82 6.14 220.90
1998***** .56* 4.03* 233.04

Putnam VT
International Growth
Fund

1999 1.17 .31 107.38
1998***** .83* (.29)* 98.31

Putnam VT International
Growth and Income Fund

1999 1.13 1.08 92.27
1998**** .84(b)* (.07)(b)* 62.61

Putnam VT International
New Opportunities Fund

1999 1.56 (.97) 196.53
1998***** 1.18* (.44)(b)* 157.72

Putnam VT Investors Fund

1999 .86 (.11) 65.59
1998***** .67(b)* .03(b)* 42.97*

Putnam VT Money
Market Fund

1999 .64 4.61 --
1998***** .46* 3.18* --

Putnam VT New
Opportunities Fund

1999 .74 (.47) 71.14
1998***** .51* (.25)* 59.75

Putnam VT New
Value Fund

1999 .95 1.43 98.21
1998***** .65* 1.26* 130.96

Putnam VT OTC &
Emerging Growth Fund

1999 1.05(b) (.68)(b) 127.98
1998***** .71(b)* (.42)(b)* 59.93*

Putnam VT
Research Fund
Fund

1999 1.00(b) .13(b) 169.16
1998****** .25(b)* .15(b)* 19.76*

Putnam Small Cap
Value Fund

1999******* 1.39* (.31)* 48.24*

Putnam VT Utilities
Growth and Income Fund

1999 .86 2.77 26.16
1998***** .59* 1.98* 24.77

Putnam Vista Fund

1999 .90 (.42) 133.32
1998***** .62* (.18)* 116.48

Putnam VT Voyager Fund

1999 .72 (.21) 85.13
1998***** .49* (.04)* 62.99

* Not annualized.

** For the period May 1, 1995 (commencement of operations) to December 31, 1995.

*** For the period January 2, 1997 (commencement of operations) to December 31, 1997.

**** For the period April 6, 1998 (commencement of operations) to December 31, 1998.

***** For the period April 30, 1998 (commencement of operations) to December 31, 1998.

****** For the period September 30, 1998 (commencement of operations) to December 31, 1998.

******* For the period April 30, 1999 (commencement of operations) to December 31, 1999.

(a) Per share net investment income has been determined on the basis of the
weighted average number of shares outstanding during the period.
</TABLE>

(b) Reflects an expense limitation in effect during the period. As a result
of such limitation, expenses of Putnam VT The George Putnam Fund of
Boston for the period ended 1998 reflect a reduction of approximately
$0.03 per share, expenses of Putnam VT Health Sciences Fund for the
period ended 1998 reflect a reduction of approximately $0.01 per share,
expenses of Putnam VT International New Opportunities Fund for the
period ended 1998 reflect a reduction of approximately less than $0.01
per share, expenses of Putnam VT Investors Fund for the period ended
1998 reflect a reduction of approximately less than $0.01 per share,
expenses of Putnam VT OTC & Emerging Markets Fund for the periods ended
1999 and 1998 reflect a reduction of approximately $0.02 and $0.05,
respectively, per share and expenses of Putnam VT Research Fund for the
periods ended 1999 and 1998 reflect a reduction of approximately $0.01
and $0.03, respectively, per share.

(d) Includes amounts paid through expense offset and brokerage service
arrangements.

(e) Net investment income, distributions from net investment income and
returns of capital were less than 0.01 per share.

For more information
about the funds of Putnam Variable Trust

PUTNAM INVESTMENTS

One Post Office Square
Boston, Massachusetts 02109

1-800- 225-1581

Address correspondence to
Putnam Investor Services

P.O. Box 989

Boston, Massachusetts 02103

www.putnaminv.com

File No. 811-5346

Prospectus

April 30, 2000

Putnam Variable Trust

Class IB Shares

Growth Funds
Putnam VT International New Opportunities Fund

This prospectus explains what you should know about Putnam VT International
New Opportunities Fund, one of the funds of Putnam Variable Trust, which
offers shares of beneifical interest in separate investment portfolios for
purchase by separate accounts of various insurance companies.

CONTENTS

2 Fund summaries (including Goal, Main investment strategies, Main risks and
Performance Information)

3 What are the funds' main investment strategies and related risks?

4 Who manages the funds?

5 How to buy and sell fund shares

5 Distribution Plan

5 How do the funds price their shares?

5 Fund distributions and taxes

7 Financial highlights

Fund summary

The following summary identifies the fund's goal, main investment
strategies and the main risks that could adversely affect the value of the
fund's shares and the total return on your investment. The summary also
contains performance information that provides some indication of the
fund's risks. The chart contained in the summary shows year-to-year
changes in the performance of the fund's class IB shares. A table
following the chart compares the fund's performance to that of broad
measures of market performance. Of course, the fund's past performance is
not necessarily an indication of future performance. None of the
performance information reflects the impact of insurance-related charges or
expenses. If it did, performance would be less than that shown. Please
refer to the prospectus for your insurance contract for information about
those charges and performance data reflecting those charges and expenses.

Class IB performance for the period prior to April 30, 1998 is based on the
performance of Class IA shares of the fund (not offered inthis prospectus),
adjusted to reflect the fees paid by class IB shares, including a fee of
0.15%.

PUTNAM VT INTERNATIONAL NEW OPPORTUNITIES FUND

GOAL

The fund seeks long-term capital appreciation.

MAIN INVESTMENT STRATEGIES -- INTERNATIONAL GROWTH STOCKS

MAIN RISKS

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can adversely
affect a stock's performance, including both general financial market
conditions and factors related to a specific company or industry. This risk
is generally greater for small and midsized companies, which tend to be more
vulnerable to adverse developments.

* The risk that movements in financial markets will adversely affect the price
of the fund's investments, regardless of how well the companies in which we
invest perform. The market as a whole may not favor the types of investments
we make.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: bar chart CALENDAR YEAR TOTAL RETURNS FOR CLASS IB SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IB SHARES

1998 15.42%
1999 102.80%

Average annual total returns (for periods ending 12/31/99)

Since
Past Inception
1 year (1/2/97)

Class IB 102.80% 32.79%
MSCI EAFE Index 26.96% 15.76%

The fund's performance benefited from Putnam Management's agreement to
limit the fund's expenses through the period ended December 31, 1998. The
fund's performance is compared to the Morgan Stanley Capital International
(MSCI) EAFE Index, an unmanaged index of international equity securities
from Europe, Australia and the Far East, with all values expressed in U.S.
dollars.

What are the fund's main investment strategies and related risks?

We generally manage the fund in a style similar to the Putnam International
New Opportunities Fund we also manage and whose shares are generally
offered to the public. Putnam International New Opportunities Fund,
however, employs different investment practices and may invest in
securities different from those in which Putnam VT International New
Opportunities Fund invests, and consequently the two funds will not have
identical portfolios or experience identical investment results.

Any investment carries with it some level of risk that generally reflects
its potential for reward.

Common stocks. Common stock represents an ownership interest in a company.
The value of a company's stock may fall as a result of factors relating
directly to that company, such as decisions made by its management or lower
demand for the company's products or services. A stock's value may also
fall because of factors affecting not just the company, but companies in
the same industry or in a number of different industries, such as increases
in production costs. The value of a company's stock may also be affected
by changes in financial markets that are relatively unrelated to the
company or its industry, such as changes in interest rates or currency
exchange rates. In addition, a company's stock generally pays dividends
only after the company invests in its own business and makes required
payments to holders of its bonds and other debt. For this reason, the
value of a company's stock will usually react more strongly than its bonds
and other debt to actual or perceived changes in the company's financial
condition or prospects. Stocks of smaller companies may be more vulnerable
to adverse developments than those of larger companies.

Smaller companies. We may invest in smaller companies. These companies,
which may have market capitalizations of less than $1 billion, are more
likely than larger companies to have limited product lines, markets or
financial resources, or to depend on a small, inexperienced management
group. Stocks of these companies often trade less frequently and in
limited volume, and their prices may fluctuate more than stocks of larger
companies. Stocks of smaller companies may therefore be more vulnerable to
adverse developments than those of larger companies.

Foreign investments. The fund may invest in securities of foreign issuers.
Foreign investments involve certain special risks, including

* Political and economic developments: Foreign investments may be subject
to the risks of seizure by a foreign government, imposition of restrictions
on the exchange or export of foreign currency, and tax increases.

* Limited legal recourse: Legal remedies for investors may be more limited
than the remedies available in the United States.

* Trading practices: Brokerage commissions and other fees are generally higher
for foreign investments than for U.S. investments. The procedures and rules
governing foreign transactions and custody may also involve delays in
payment, delivery or recovery of money or investments.

Other risks arise from the potential inability to terminate or sell
derivatives positions. A liquid secondary market may not always exist for
the fund's derivative positions at any time. In fact, many
over-the-counter instruments (investments not traded on an exchange) will
not be liquid. Over-the-counter instruments also involve the risk that the
other party to the derivative transaction will not meet its obligations.
For further information about the risks of derivatives, see the Trust's
statement of additional information (SAI).

Frequent trading. We may buy and sell investments relatively often, which
involves higher brokerage commissions and other expenses.

Changes in policies. The Trust's Trustees may change the fund's goal,
investment strategies and other policies without shareholder approval,
except as otherwise indicated.

Who manages the fund?

The Trust's Trustees oversee the general conduct of the fund's business.
The Trustees have retained Putnam Management to be the fund's investment
manager, responsible for making investment decisions for the fund and
managing the fund's other affairs and business. The fund pays Putnam
Management a quarterly management fee for these services based on the
fund's average net assets. The fund paid Putnam Management a management
fee of 1.08% of average net assets for the fund's last fiscal year. Putnam
Management's address is One Post Office Square, Boston, MA 02109.

The following officers of Putnam Management have primary responsibility for
the day-to-day management of the fund's portfolio. Each officer's length
of service to the fund and the officer's experience as portfolio manager or
investment analyst over at least the last five years are shown.

Fund name Year Business experience (at least 5 years)
<S> <C> <C> <C>
Putnam VT International
New Opportunities Fund

Robert J. Swift 1996 1995-Present Putnam Management
Managing Director Prior to August 1995 IAI International/Hill
Samuel Investment Advisors

Carmel Peters 1999 1997-Present Putnam Management
Senior Vice President Prior to May 1997 Wheelock Natwest
Investment Management,
Hong Kong
Prior to February 1996 Rothschild Asset Management
Asia Pacific, Hong Kong

Stephen P. Dexter 1999 1999-Present Putnam Management
Senior Vice President Prior to June 1999 Scudder Kemper Inc.

</TABLE>

How to buy and sell fund shares

Under unusual circumstances, the Trust may suspend repurchases or postpone
payment for up to seven days or longer, as permitted by federal securities
law.

Distribution Plan

Putnam Mutual Funds makes quarterly payments to dealers at the annual rate
of up to 0.15% of the average net asset value of class IB shares.

How does the fund price its shares?

Fund distributions and taxes

In order for investors to receive the favorable tax treatment available to
holders of variable annuity and variable life contracts, the separate
accounts underlying such contracts, as well as the funds in which such
accounts invest, must meet certain diversification requirements. The fund
intends to comply with these requirements. If the fund does not meet such
requirements, income allocable to the contracts would be taxable currently
to the holders of such contracts.

Fund investments in foreign securities may be subject to withholding taxes
at the source on dividend or interest payments. In that case, the fund's
yield on those securities would be decreased.

Financial highlights

Financial highlights
(For a share outstanding throughout the period)

Year ended December 31
----------------------------------
Per-share
operating performance 1999 1998*
- --------------------------------------------------------------------------
<S> <C> <C>
Net asset value,
beginning of period $11.48 $11.39
- --------------------------------------------------------------------------
Investment operations
Net investment income (loss) (.16) (a) (.05) (a)(b)
Net realized and unrealized
gain (loss) on investments 11.96 .14
- --------------------------------------------------------------------------
Total from
investment operations 11.80 .09
- --------------------------------------------------------------------------
Less distributions:
From net investment income -- (e) --
From net realized gain on
investments -- .09
In excess of net realized gain
on investments -- --
From return of capital -- --
- --------------------------------------------------------------------------
Total distributions -- (e) --
- --------------------------------------------------------------------------
Net asset value,
end of period $23.28 $11.48
- --------------------------------------------------------------------------
Ratios and supplemental data
Total return
at net asset value (%)(c) 102.80 .79 **
Net assets, end of period
(in thousands) $33,554 $85
- --------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(d) 1.56 1.18 **
Ratio of net investment loss
to average net assets (%) (.97) (.44) (b)**
Portfolio turnover (%) 196.53 157.72
- --------------------------------------------------------------------------

* For the period April 30, 1998 (commencement of operations) to
December 31, 1998.

** Not annualized.

a Per share net investment income (loss) has been determined on the basis
of the weighted average number of shares outstanding during the period.

b Reflects an expense limitation in effect during the period. As a result
of such limitation, exepnses were reduced by $0.01 per share.

c Total return assumes dividend reinvestment and does not reflect the effect
of sales charges.

d Includes amounts paid through expense offset and brokerage service
arrangements.

e Net investment income, distributions from net investment income and returns
of capital were less than $0.01 per share.

</TABLE>

For more information
about the fund and Putnam Variable Trust

You may review and copy information about the fund, including the Trust's
SAI, at the Securities and Exchange Commission's public reference room in
Washington, D.C. You may call the Commission at 1-202-942-8090 for
information about the operation of the public reference room. You may also
access reports and other information about the fund on the EDGAR database
on the Commission's Internet site at http://www.sec.gov. You may get
copies of this information, with payment of a duplication fee, by
electronic request at the following E-mail address: [email protected] or
by writing the Commission's Public Reference Section of the Commission,
Washington, D.C. 20549-0102. You may need to refer to the fund's file
number.

P U T N A M I N V E S T M E N T S

One Post Office Square
Boston, Massachusetts 02109
1-800-752-9894

Address correspondence to
Putnam Investor Services
P. O. Box 989
Boston, Massachusetts 02103

www.putnaminv.com

File No. 811-5346

Putnam Mutual Funds Corp.
Member, NASD, Inc.

Prospectus

April 30, 2000

Putnam Variable Trust

Class IB Shares

Growth Funds
Putnam VT Vista Fund

This prospectus explains what you should know about Putnam VT Vista Fund,
one of the funds of Putnam Variable Trust, which offers shares of
beneficial interest in separate investment portfolios for purchase by
separate accounts of various insurance companies.

CONTENTS

2 Fund summaries (including Goal, Main investment strategies, Main risks and
Performance Information)

3 What are the funds' main investment strategies and related risks?

4 Who manages the funds?

5 How to buy and sell fund shares

5 Distribution Plan

5 How do the funds price their shares?

5 Fund distributions and taxes

7 Financial highlights

Fund summary

The following summary identifies the fund's goal, main investment
strategies and the main risks that could adversely affect the value of the
fund's shares and the total return on your investment. The summary also
contains performance information that provides some indication of the
fund's risks. The chart contained in the summary shows year-to-year
changes in the performance of the fund's class IB shares. A table
following the chart compares the fund's performance to that of broad
measures of market performance. Of course, the fund's past performance is
not necessarily an indication of future performance. None of the
performance information reflects the impact of insurance-related charges or
expenses. If it did, performance would be less than that shown. Please
refer to the prospectus for your insurance contract for information about
those charges and performance data reflecting those charges and expenses.

Class IB performance for the period prior to April 30, 1998 is based on the
performance of Class IA shares of the fund (not offered in this prospectus),
adjusted to reflect the fees paid by class IB shares, including a fee of
0.15%.

PUTNAM VT VISTA FUND

GOAL

The fund seeks capital appreciation.

MAIN INVESTMENT STRATEGIES -- GROWTH STOCKS

MAIN RISKS

* The risk that movements in financial markets will adversely affect the price
of the fund's investments, regardless of how well the companies in which we
invest perform. The market as a whole may not favor the types of investments
we make.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: bar chart CALENDAR YEAR TOTAL RETURNS FOR CLASS IB SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IB SHARES

1998 19.50%
1999 52.59%

Year-to-date performance through 3/31/2000 was 21.21%. During the periods
shown in the bar chart, the highest return for a quarter was 41.27%
(quarter ending 12/31/99) and the lowest return for a quarter was
- -17.29% (quarter ending 9/30/98).

Average annual total returns (for periods ending 12/31/99)

Since
Past Inception
1 year (1/2/97)

Class IB 52.59% 31.02%
Russell Midcap Growth Index 51.29% 29.79%
S&P 500 Index 21.04% 27.58%

The fund's performance benefited from Putnam Management's agreement to
limit the fund's expenses through the period ended December 31, 1998. The
fund's performance is compared to the Standard & Poor's 500 Index, an
unmanaged index of common stocks frequently used as a general measure of
U.S. stock market performance. The fund's performance is also compared to
the Russell Midcap Growth Index, an unmanaged index that measures the
performance of those companies in the Russell Midcap Index that have higher
prices relative to the book value of their assets and higher forecasted
growth rates. The Russell Midcap Growth Index is replacing the S&P 500
Index because Putnam Management believes the Russell Midcap Growth Index is
a more appropriate index against which to compare the fund's performance.

What are the fund's main investment strategies and related risks?

We generally manage the fund in a style similar to the Putnam Vista Fund we
also manage and whose shares are generally offered to the public. Putnam
Vista Fund, however, employs different investment practices and may invest
in securities different from those in which Putnam VT Vista Fund invests,
and consequently the two funds will not have identical portfolios or
experience identical investment results.

Any investment carries with it some level of risk that generally reflects
its potential for reward.

Common stocks. Common stock represents an ownership interest in a company.
The value of a company's stock may fall as a result of factors relating
directly to that company, such as decisions made by its management or lower
demand for the company's products or services. A stock's value may also
fall because of factors affecting not just the company, but companies in
the same industry or in a number of different industries, such as increases
in production costs. The value of a company's stock may also be affected
by changes in financial markets that are relatively unrelated to the
company or its industry, such as changes in interest rates or currency
exchange rates. In addition, a company's stock generally pays dividends
only after the company invests in its own business and makes required
payments to holders of its bonds and other debt. For this reason, the
value of a company's stock will usually react more strongly than its bonds
and other debt to actual or perceived changes in the company's financial
condition or prospects. Stocks of smaller companies may be more vulnerable
to adverse developments than those of larger companies.

Smaller companies. We may invest in smaller companies. These companies,
which may have market capitalizations of less than $1 billion, are more
likely than larger companies to have limited product lines, markets or
financial resources, or to depend on a small, inexperienced management
group. Stocks of these companies often trade less frequently and in
limited volume, and their prices may fluctuate more than stocks of larger
companies. Stocks of smaller companies may therefore be more vulnerable to
adverse developments than those of larger companies.

Foreign investments. The fund may invest in securities of foreign issuers.
Foreign investments involve certain special risks, including

* Unfavorable changes in currency exchange rates: Foreign investments are
typically issued and traded in foreign currencies. As a result, their values
may be affected by changes in exchange rates between foreign currencies and
the U.S. dollar.

* Political and economic developments: Foreign investments may be subject to
the risks of seizure by a foreign government, imposition of restrictions on
the exchange or export of foreign currency, and tax increases.

* Unreliable or untimely information: There may be less information publicly
available about a foreign company than about most U.S. companies, and foreign
companies are usually not subject to accounting, auditing and financial
reporting standards and practices as stringent as those in the United States.

* Limited legal recourse: Legal remedies for investors may be more limited than
the remedies available in the United States.

* Limited markets: Certain foreign investments may be less liquid (harder to
buy and sell) and more volatile than U.S. investments, which means we may at
times be unable to sell these foreign investments at desirable prices. For
the same reason, we may at times find it difficult to value the fund's
foreign investments.

* Trading practices: Brokerage commissions and other fees are generally higher
for foreign investments than for U.S. investments. The procedures and rules
governing foreign transactions and custody may also involve delays in
payment, delivery or recovery of money or investments.

Frequent trading. We may buy and sell investments relatively often, which
involves higher brokerage commissions and other expenses.

Changes in policies. The Trust's Trustees may change the fund's goal,
investment strategies and other policies without shareholder approval,
except as otherwise indicated.

Who manages the fund?

The Trust's Trustees oversee the general conduct of the fund's business.
The Trustees have retained Putnam Management to be the fund's investment
manager, responsible for making investment decisions for the fund and
managing the fund's other affairs and business. The fund pays Putnam
Management a quarterly management fee for these services based on the
fund's average net assets. The fund paid Putnam Management a management
fee of 0.65% of average net assets for the fund's last fiscal year. Putnam
Management's address is One Post Office Square, Boston, MA 02109.

The following officers of Putnam Management have primary responsibility for
the day-to-day management of the fund's portfolio. Each officer's length
of service to the fund and the officer's experience as portfolio manager or
investment analyst over at least the last five years are shown.

Fund name Year Business experience (at least 5 years)
<S> <C> <C> <C>
Putnam VT Vista Fund
Eric Wetlaufer 1997 1997-Present Putnam Management
Managing Director Prior to November 1997 Cadence Capital
Management

Anthony C. Santosus 1996 1985-Present Putnam Management
Senior Vice President

Margery C. Parker 1998 1997-Present Putnam Management
Senior Vice President Prior to December 1997 Keystone Investments

Dana Clark 1999 1987-Present Putnam Management
Vice President

</TABLE>

How to buy and sell fund shares

Under unusual circumstances, the Trust may suspend repurchases or postpone
payment for up to seven days or longer, as permitted by federal securities
law.

Distribution Plan

Putnam Mutual Funds makes quarterly payments to dealers at the annual rate
of up to 0.15% of the average net asset value of class IB shares.

How does the fund price its shares?

Fund distributions and taxes

In order for investors to receive the favorable tax treatment available to
holders of variable annuity and variable life contracts, the separate
accounts underlying such contracts, as well as the funds in which such
accounts invest, must meet certain diversification requirements. The fund
intends to comply with these requirements. If the fund does not meet such
requirements, income allocable to the contracts would be taxable currently
to the holders of such contracts.

Fund investments in foreign securities may be subject to withholding taxes
at the source on dividend or interest payments. In that case, the fund's
yield on those securities would be decreased.

Financial highlights

Financial highlights
(For a share outstanding throughout the period)

Net realized and unrealized
gain loss on investments 7.62 .99
- --------------------------------------------------------------------------
Total from
investment operations 7.55 .97
- --------------------------------------------------------------------------
Less distributions:
From net investment income -- --

From net realized gain on
investments $(1.63) --

In excess of net realized gain
on investments -- --

From return of capital -- --
- --------------------------------------------------------------------------
Total distributions $(1.63) --
- --------------------------------------------------------------------------
Net asset value,
end of period $20.65 $14.73
- --------------------------------------------------------------------------
Ratios and supplemental data

Total return
at net asset value (%)(b) 52.59 7.05 **

Net assets, end of period
(in thousands) $37,506 $851
- --------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(c) .90 .62 **

Ratio of net investment loss
to average net assets (%) (.42) (.18)

Portfolio turnover (%) 133.32 116.48
- --------------------------------------------------------------------------

* For the period April 30, 1998 (commencement of operations) to
December 31, 1998.

** Not annualized.

a Per share net investment income (loss) has been determined on the basis
of the weighted average number of shares outstanding during the period.

b Total return assumes dividend reinvestment and does not reflect the effect
of sales charges.

c Includes amounts paid through expense offset and brokerage service
arrangements.

</TABLE>

For more information
about the fund and Putnam Variable Trust

You may review and copy information about the fund, including the Trust's
SAI, at the Securities and Exchange Commission's public reference room in
Washington, D.C. You may call the Commission at 1-202-942-8090 for
information about the operation of the public reference room. You may also
access reports and other information about the fund on the EDGAR database
on the Commission's Internet site at http://www.sec.gov. You may get
copies of this information, with payment of a duplication fee, by
electronic request at the following E-mail address: [email protected] or
by writing the Commission's Public Reference Section of the Commission,
Washington, D.C. 20549-0102. You may need to refer to the fund's file
number.

P U T N A M I N V E S T M E N T S

One Post Office Square
Boston, Massachusetts 02109
1-800-752-9894

Address correspondence to
Putnam Investor Services
P. O. Box 989
Boston, Massachusetts 02103

www.putnaminv.com

File No. 811-5346

Putnam Mutual Funds Corp.
Member, NASD, Inc.

Prospectus
April 30, 2000

Putnam Variable Trust
Class IB Shares

Growth Funds
Putnam VT International Growth Fund
Putnam VT Voyager Fund
Growth and Income Funds
Putnam VT Growth and Income Fund

This prospectus explains what you should know about the funds in Putnam
Variable Trust listed above, which are available for purchase by separate
accounts of insurance companies.

CONTENTS

Fund summaries (including Goal, Main investment strategies, Main risks and
Performance Information)

What are the funds' main investment strategies and related risks?

Who manages the funds?

How to buy and sell fund shares

Distribution Plan

How do the funds price their shares?

Fund distributions and taxes

Financial highlights

Fund summaries

The following summaries identify each fund's goal, main investment
strategies and the main risks that could adversely affect the value of a
fund's shares and the total return on your investment. Each summary also
contains performance information that provides some indication of each
fund's risks. The chart contained in each summary shows year-to-year
changes in the performance of the fund's Class IB shares. A table
following each chart compares the fund's performance to that of broad
measures of market performance. Of course, a fund's past performance is
not necessarily an indication of future performance. None of the
performance information reflects the impact of insurance-related charges or
expenses. If it did, performance would be less than that shown. Please
refer to the prospectus for your insurance contract for information about
those charges and performance data reflecting those charges and expenses.

Class IB performance for the period prior to April 6, 1998 for Putnam VT
Growth and Income Fund and for the period prior to April 30, 1998 for
Putnam VT International Growth Fund and Putnam VT Voyager Fund, are based
upon the performance of class IA shares of the fund (not offered in this
prospectus), adjusted to reflect the fees paid by class IB shares,
including a 12b-1 fee of 0.15%.

PUTNAM VT GROWTH AND INCOME FUND

GOAL

The fund seeks capital growth and current income.

MAIN INVESTMENT STRATEGIES -- VALUE STOCKS

We invest mainly in common stocks of U.S. companies with a focus on value
stocks. Value stocks are those we believe are currently undervalued by the
market. We look for companies undergoing positive change. If we are
correct and other investors recognize the value of the company, the price
of the stock may rise. We invest mainly in large companies.

MAIN RISKS

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general
financial market conditions and factors related to a specific company
or industry. This risk is generally greater for small and midsized
companies, which tend to be more vulnerable to adverse developments.

* The risk that movements in financial markets will adversely affect the
price of the fund's investments, regardless of how well the companies
in which we invest perform. The market as a whole may not favor the
types of investments we make.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: vertical bar chart CALENDAR YEAR
TOTAL RETURNS FOR CLASS IB SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IB SHARES

1990 1.81%
1991 18.87%
1992 9.59%
1993 14.09%
1994 0.20%
1995 36.51%
1996 21.73%
1997 23.96%
1998 15.29%
1999 1.47%

Year-to-date performance through 3/31/2000 was -1.80%. During the periods
shown in the bar chart, the highest return for a quarter was 16.59%
(quarter ending 12/31/98) and the lowest return for a quarter was -10.16%
(quarter ending 9/30/99).

Average annual total returns (for periods ending 12/31/99)

Past Past Past
1 year 5 years 10 years

Class IB 1.47% 19.23% 13.83%
S&P 500 Index 21.04% 28.56% 18.21%

The fund's performance is compared to the Standard & Poor's 500 Index, an
unmanaged index of common stocks frequently used as a general measure of
U.S. stock market performance.

PUTNAM VT INTERNATIONAL GROWTH FUND

GOAL

The fund seeks capital appreciation.

MAIN INVESTMENT STRATEGIES - INTERNATIONAL STOCKS

MAIN RISKS

* The risks of investing outside the United States, such as currency
fluctuations, economic or financial instability, lack of timely or
reliable financial information or unfavorable political or legal
developments in international markets. The risks are increased for
investments in emerging markets.

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general financial
market conditions and factors related to a specific company or industry.
This risk is generally greater for small and midsized companies, which
tend to be more vulnerable to adverse developments.

* The risk that movements in financial markets will adversely affect the
price of the fund's investments, regardless of how well the companies in
which we invest perform.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: vertical bar chart CALENDAR YEAR
TOTAL RETURNS FOR CLASS IB SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IB SHARES

1998 18.47%
1999 60.10%

Average annual total returns (for periods ending 12/31/99)

Since
Past Inception
1 year (5/2/94)

Class IB 60.10% 30.16%
MSCI EAFE Index 26.96% 15.76%

The fund's performance benefited from Putnam Management's agreement to
limit the fund's expenses through the period ended December 31, 1998. The
fund's performance is compared to the Morgan Stanley Capital International
(MSCI) EAFE Index, an unmanaged index of equity securities from Europe,
Australia, and the Far East, with all values expressed in U.S. dollars.

PUTNAM VT VOYAGER FUND

GOAL

The fund seeks capital appreciation.

MAIN INVESTMENT STRATEGIES - GROWTH STOCKS

MAIN RISKS

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general
financial market conditions and factors related to a specific company
or industry. This risk is generally greater for small and midsized
companies, which tend to be more vulnerable to adverse developments.

* The risk that movements in financial markets will adversely affect the
price of the fund's investments, regardless of how well the companies
in which we invest perform. The market as a whole may not favor the
types of investments we make.

PERFORMANCE INFORMATION

[GRAPHIC OMITTED: vertical bar chart CALENDAR YEAR
TOTAL RETURNS FOR CLASS IB SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IB SHARES

1990 -2.18%
1991 45.87%
1992 10.19%
1993 18.92%
1994 0.89%
1995 40.46%
1996 12.80%
1997 26.33%
1998 24.19%
1999 58.01%

Year-to-date performance through 3/31/2000 was 10.80%. During the periods
shown in the bar chart, the highest return for a quarter was 41.32%
(quarter ending 12/31/99) and the lowest return for a quarter was -17.39%
(quarter ending 9/30/90).

Average annual total returns (for periods ending 12/31/99)

Past Past Past
1 year 5 years 10 years

Class IB 58.01% 31.47% 22.14%
Russell Midcap
Growth Index 51.29% 28.03% 18.96%
S&P 500 Index 21.04% 28.56% 18.21%

The fund's performance is compared to the Standard & Poor's 500 Index, an
unmanaged index of common stocks frequently used as a general measure of
U.S. stock market performance. The fund's performance is also compared to
to the Russell Midcap Growth Index, an unmanaged index of common stocks of
midsized companies that are also included on the Russell 1000 Growth Index.
The Russell Midcap Growth Index has been added because Putnam Management
believes this index is an appropriate index against which to compare the
fund's performance.

What are the funds' main investment strategies and related risks?

Common stocks. Common stock represents an ownership interest in a company.
The value of a company's stock may fall as a result of factors relating
directly to that company, such as decisions made by its management or lower
demand for the company's products or services. A stock's value may also
fall because of factors affecting not just the company, but companies in
the same industry or in a number of different industries, such as increases
in production costs. The value of a company's stock may also be affected
by changes in financial markets that are relatively unrelated to the
company or its industry, such as changes in interest rates or currency
exchange rates. In addition, a company's stock generally pays dividends
only after the company invests in its own business and makes required
payments to holders of its bonds and other debt. For this reason, the
value of a company's stock will usually react more strongly than its bonds
and other debt to actual or perceived changes in the company's financial
condition or prospects. Stocks of smaller companies may be more vulnerable
to adverse developments than those of larger companies.

Smaller companies. We may invest in smaller companies. These companies,
which may have market capitalizations of less than $1 billion, are more
likely than larger companies to have limited product lines, markets or
financial resources, or to depend on a small, inexperienced management
group. Stocks of these companies often trade less frequently and in
limited volume, and their prices may fluctuate more than stocks of larger
companies. Stocks of smaller companies may therefore be more vulnerable to
adverse developments than those of larger companies.

Foreign investments. Each of the funds may invest in securities of foreign
issuers. Foreign investments involve certain special risks, including

* Unfavorable changes in currency exchange rates: Foreign investments
are typically issued and traded in foreign currencies. As a result,
their values may be affected by changes in exchange rates between
foreign currencies and the U.S. dollar.

* Political and economic developments: Foreign investments may be
subject to the risks of seizure by a foreign government, imposition
of restrictions on the exchange or export of foreign currency, and
tax increases.

* Unreliable or untimely information: There may be less information
publicly available about a foreign company than about most U.S.
companies, and foreign companies are usually not subject to
accounting, auditing and financial reporting standards and practices
as stringent as those in the United States.

* Limited legal recourse: Legal remedies for investors may be more
limited than the remedies available in the United States.

* Limited markets: Certain foreign investments may be less liquid
(harder to buy and sell) and more volatile than U.S. investments,
which means we may at times be unable to sell these foreign
investments at desirable prices. For the same reason, we may at times
find it difficult to value the fund's foreign investments.

* Trading practices: Brokerage commissions and other fees are generally
higher for foreign investments than for U.S. investments. The
procedures and rules governing foreign transactions and custody may
also involve delays in payment, delivery or recovery of money or
investments.

* Lower yield: Common stocks of foreign companies have historically
offered lower dividends than stocks of comparable U.S. companies.
Foreign withholding taxes may further reduce the amount of income
available to distribute to shareholders of the fund. The fund's yield
is therefore expected to be lower than yields of most funds that
invest mainly in U.S. companies.

* Sovereign issuers: The willingness and ability of sovereign issuers
to pay principal and interest on government securities depends on
various economic factors, including the issuer's balance of payments,
overall debt level, and cash flow from tax or other revenues.

Other risks arise from the potential inability to terminate or sell
derivatives positions. A liquid secondary market may not always exist for
the fund's derivative positions at any time. In fact, many
over-the-counter instruments (investments not traded on an exchange) will
not be liquid. Over-the-counter instruments also involve the risk that the
other party to the derivative transaction will not meet its obligations.
For further information about the risks of derivatives, see the Trust's
statement of additional information (SAI).

Frequent trading. We may buy and sell investments relatively often, which
involves higher brokerage commissions and other expenses.

Other investments. In addition to the main investment strategies described
above, we may make other investments, such as investments in preferred
stocks, convertible securities and debt securities which may be subject to
other risks as described in the SAI.

Changes in policies. The Trust's Trustees may change any of the funds'
goals, investment strategies and other policies without shareholder
approval, except as otherwise indicated.

Who manages the funds?

Putnam VT Fund Management
Fees
Putnam VT Growth and Income Fund 0.46%
Putnam VT International Growth 0.80%
Putnam VT Voyager Fund 0.53%

Fund name Year Business experience (at least 5 years)
<S> <C> <C> <C>
Putnam VT Growth and Income Fund
David L. King 1993 1983-Present Putnam Management
Managing Director

Hugh H. Mullin 1998 1986-Present Putnam Management
Senior Vice President

Sheldon N. Simon 1997 1984-Present Putnam Management
Senior Vice President

Putnam VT International Growth Fund
Justin M. Scott 1996 1988-Present Putnam Management
Managing Director

Omid Kamshad 1996 1996- Present Putnam Management
Managing Director Prior to January 1996 Lombard Odier
International

Mark D. Pollard 1999 1990- Present Putnam Management
Managing Director

Paul C. Warren 1999 1997- Present Putnam Management
Senior Vice President Prior to May 1997 IDS Fund Management

Joshua L. Byrne 2000 1993-Present Putnam Management
Senior Vice President

Putnam VT Voyager Fund
Robert R. Beck 1995 1989-Present Putnam Management
Managing Director

Roland W. Gillis 1995 1995- Present Putnam Management
Managing Director Prior to March 1995 Keystone Custodian
Funds, Inc.

Michael P. Stack
Senior Vice President 1997 1997- Present Putnam Management
Prior to November 1997 Independence Investment
Associates, Inc.

Charles H. Swanberg
Senior Vice President 1994 1984-Present Putnam Management

Paul Marrkand
Senior Vice President 2000 1987-Present Putnam Management

</TABLE>

How to buy and sell fund shares

Distribution Plan

Putnam Mutual Funds makes quarterly payments to dealers at the annual rate
of up to 0.15% of the average net asset value of class IB shares.

How do the funds price their shares?

Each fund translates prices for its investments quoted in foreign
currencies into U.S. dollars at current exchange rates. As a result,
changes in the value of those currencies in relation to the U.S. dollar may
affect each fund's NAV. Because foreign markets may be open at different
times than the New York Stock Exchange, the value of each fund's shares may
change on days when shareholders are not able to buy or sell them. If
events materially affecting the values of each fund's foreign investments
occur between the close of foreign markets and the close of regular trading
on the New York Stock Exchange, these investments will be valued at their
fair value.

Fund distributions and taxes

Fund investments in foreign securities may be subject to withholding taxes
at the source on dividend or interest payments. In that case, a fund's
yield on those securities would be decreased.

Financial highlights

Putnam VT New Opportunities Fund
1999 $26.04 $(.15)(a) $17.92 $17.77 $-- $(.37) $-- $--
1998*** 23.94 (.05)(a) 2.15 2.10 -- -- -- --

Putnam VT Voyager Fund
1999 $45.81 $(.10)(a) $24.62 $24.52 $(.05) $4.17 $-- $--
1998*** 41.55 (.01)(a) 4.27 4.26 -- -- -- --

</TABLE>

Total Ratio of Net
Investment Ratio of Investment
Net Asset Return at Net Assets Expenses to Income (Loss) to
Total Value, End Net Asset End of Period Average Net Average Net Portfolio
Distributions of Period Value(%)(b) (in thousands) Assets(%)(c) Assets(%) Turnover (%)
<S> <C> <C> <C> <C> <C> <C> <C>
Putnam VT Growth and Income Fund
1999 $(2.45) $26.75 1.47 $162,112 .65 1.55 53.68
1998**** -- 28.75 2.61* 7,583 .49* 1.20* 63.62

Putnam VT New Opportunities Fund
1999 $(.37) $43.44 69.10 $62,977 .74 (.47) 71.14
1998** -- 26.04 8.77* 1,359 .51* (.25)* 59.75

Putnam VT New Value Fund
1999 $(.21) $11.85 .26 $9,541 .95 1.43 98.21
1998*** (.15) 12.02 2.28* 414 .65* 1.26* 130.96

Putnam VT Voyager Fund
1999 $(4.22) $66.11 58.01 $155,889 .72 (.21) 85.13
1998*** -- 45.81 10.25* 4,332 .49* (.04)* 62.99

* Not annualized.

** For the period April 6, 1998 (commencement of operations) to December 31, 1998.

*** For the period April 30, 1998 (commencement of operations) to December 31, 1998.

(a) Per share net investment income has been determined on the basis of the
weighted average number of shares outstanding during the period.

(b) Total investment return assumes dividend reinvestment.

</TABLE>

For more information
about the funds of Putnam Variable Trust

You may review and copy information about the funds, including the Trust's
SAI, at the Securities and Exchange Commission's public reference room in
Washington, D.C. You may call the Commission at 1-202-942-8090 for
information about the operation of the public reference room. You may also
access reports and other information about the fund on the EDGAR Database
on the Commission's Internet site at http://www.sec.gov. You may get
copies of this information, with payment of a duplication fee, by
electronic request at the following E-mail address: [email protected]. or
by writing the Commission's Public Reference Section, Washington, D.C.
20549-0102. You may need to refer to the fund's file number.

PUTNAM INVESTMENTS

One Post Office Square
Boston, Massachusetts 02109
1-800-225-1581

Address correspondence to
Putnam Investor Services
P.O. Box 989
Boston, Massachusetts 02103

www.putnaminv.com

File No. 811-5346

Prospectus

April 30, 2000

Putnam Variable Trust
Class IB Shares

Growth Funds
Putnam VT Global Growth Fund
Putnam VT Growth Opportunities Fund
Growth and Income Funds
Putnam VT Growth and Income Fund
Putnam VT New Value Fund
Money Market Fund

Putnam VT Money Market Fund

This prospectus explains what you should know about the funds in Putnam
Variable Trust listed above, which are available for purchase by separate
accounts of insurance companies.

CONTENTS

2 Fund summaries (including Goal, Main investment strategies, Main risks and
Performance information)

5 What are the funds' main investment strategies and related risks?

8 Who manages the funds?

9 How to buy and sell fund shares

9 Distribution Plan

9 How do the funds price their shares?

10 Fund distributions and taxes

12 Financial highlights

Fund summaries

The following summaries identify each fund's goal, main investment
strategies and the main risks that could adversely affect the value of a
fund's shares and the total return on your investment. Each summary also
contains performance information that provides some indication of each
fund's risks. The chart contained in each summary shows year-to-year
changes in the performance of the fund's Class IB shares. A table
following each chart compares the fund's performance to that of broad
measures of market performance. Of course, a fund's past performance is
not necessarily an indication of future performance. None of the
performance information reflects the impact of insurance-related charges or
expenses. If it did, performance would be less than that shown. Please
refer to the prospectus for your insurance contract for information about
those charges and performance data reflecting those charges and expenses.

Class IB performance for the period prior to April 6, 1998 for Putnam VT
Growth and Income Fund and for the period prior to April 30, 1998 for
Putnam VT Global Growth Fund, Putnam VT Money Market Fund and Putnam VT New
Value Fund , based upon the performance of class IA shares of the fund (not
offered in this prospectus), adjusted to reflect the fees paid by class IB
shares, including a 12b-1 fee of 0.15%.

PUTNAM VT GLOBAL GROWTH FUND

GOAL

The fund seeks capital appreciation.

MAIN INVESTMENT STRATEGIES - GLOBAL GROWTH STOCKS

MAIN RISKS

* The risks of investing outside the United States, such as currency
fluctuations, economic or financial instability, lack of timely or
reliable financial information, or unfavorable political or legal
developments .These risks are increased for investments in emerging
markets.

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general
financial market conditions and factors related to a specific company
or industry. This risk is generally greater for small and midsized
companies, which tend to be more vulnerable to adverse developments.

* The risk that movements in financial markets will adversely affect the
price of the fund's investments, regardless of how well the companies
in which we invest perform. The market as a whole may not favor the
types of investments we make.

PERFORMANCE INFORMATION

[GRAPHIC OMMITTED: Vertical bar chart CALENDAR
YEAR TOTAL RETURNS FOR CLASS IB SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IB SHARES

1991 14.84%
1992 -0.51%
1993 32.20%
1994 -1.11%
1995 15.50%
1996 17.03%
1997 14.16%
1998 29.65%
1999 64.56%

Average annual total returns (for periods ending 12/31/99)

Since
Past Past Inception
1 year 5 years (5/1/90)

Class IB 64.56% 26.90% 17.04%
MSCI World Index 24.94% 19.76% 13.82%
MSCI All-Country World Free 30.90% 12.39% 10.05%

The fund's performance is compared to the Morgan Stanley Capital
International (MSCI) World Index, an unmanaged index of global equity
securities composed of companies in 22 Developed Market countries in North
America, Europe and the Asia/Pacific Region with all values expressed in
U.S. dollars. The fund's performance is also compared to the Morgan
Stanley Capital International (MSCI) All-Country World Free Index, an
unmanaged index of global equity securities of companies in 47 Developed
and Emerging Market countries in the Americas, Europe/Middle East and
Asia/Pacific Region with all values expressed in U.S. dollars. The MSCI
All-Country World Free Index is replacing the MSCI World Index because
Putnam Management believes the MSCI All-Country World Free Index is a more
appropriate index against which to compare the fund's performance.

PUTNAM VT GROWTH AND INCOME FUND

GOAL

The fund seeks capital growth and current income.

MAIN INVESTMENT STRATEGIES - VALUE STOCKS

We invest mainly in common stocks of U.S. companies with a focus on value
stocks. Value stocks are those we believe are currently undervalued by the
market. We look for companies undergoing positive change. If we are
correct and other investors recognize the value of the company, the price
of the stock may rise. We invest mainly in large companies.

MAIN RISKS

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general
financial market conditions and factors related to a specific company
or industry. This risk is generally greater for small and midsized
companies, which tend to be more vulnerable to adverse developments.

* The risk that movements in financial markets will adversely affect the
price of the fund's investments, regardless of how well the companies
in which we invest perform. The market as a whole may not favor the
types of investments we make.

PERFORMANCE INFORMATION

[GRAPHIC OMMITTED: Vertical bar chart CALENDAR
YEAR TOTAL RETURNS FOR CLASS IB SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IB SHARES

1990 1.81%
1991 18.87%
1992 9.59%
1993 14.09%
1994 0.20%
1995 36.51%
1996 21.73%
1997 23.96%
1998 15.29%
1999 1.47%

Year-to-date performance through 3/31/2000 was -1.80%. During the periods
shown in the bar chart, the highest return for a quarter was 16.59%
(quarter ending 12/31/98) and the lowest return for a quarter was -10.16%
(quarter ending 9/30/99).

Average annual total returns (for periods ending 12/31/99)

Past Past Past
1 year 5 years 10 years

Class IB 1.47% 19.23% 13.83%
S&P 500 Index 21.04% 28.56% 18.21%

The fund's performance is compared to the Standard & Poor's 500 Index, an
unmanaged index of common stocks frequently used as a general measure of
U.S. stock market performance.

PUTNAM VT GROWTH OPPORTUNITIES FUND

GOAL

The fund seeks capital appreciation.

MAIN INVESTMENT STRATEGIES - GROWTH STOCKS

MAIN RISKS

* The risk that movements in financial markets will adversely affect the
price of the fund's investments, regardless of how well the companies
in which we invest perform. The market as a whole may not favor the
types of investments we make.

* The risk of loss from investing in fewer issuers than a fund that
invests more broadly. This vulnerability to factors affecting a single
investment can result in greater fund losses and volatility.

PERFORMANCE INFORMATION

Performance information will be available after the fund completes a full
calendar year of operation.

PUTNAM VT MONEY MARKET FUND

GOAL

The fund seeks as high a rate of current income as Putnam Management
believes is consistent with preservation of capital and maintenance of
liquidity.

MAIN INVESTMENT STRATEGIES - INCOME

We seek to maintain a stable net asset asset value of $1.00 per share for
the fund.

We invest primarily in instruments that:

* are high quality and

* have a short-term maturity.

MAIN RISKS

* The risk that the value of your investment may be eroded over time by the
effects of inflation.

PERFORMANCE INFORMATION

[GRAPHIC OMMITTED: Vertical bar chart CALENDAR
YEAR TOTAL RETURNS FOR CLASS IB SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IB SHARES

1990 7.81%
1991 5.76%
1992 3.42%
1993 2.64%
1994 3.67%
1995 5.30%
1996 4.93%
1997 5.06%
1998 5.12%

1999 4.66%

Average annual total returns (for periods ending 12/31/99)

Past Past Past
1 year 5 years 10 years

Class IB 4.66% 5.11% 4.85%
Merrill Lynch 91-Day
Treasury Bill Index 4.85% 5.35% 5.28%
Lipper Money Market
Average 4.49% 4.95% 4.80%

PUTNAM VT NEW VALUE FUND

GOAL

The fund seeks long-term capital appreciation.

MAIN INVESTMENT STRATEGIES - VALUE STOCKS

We invest mainly in common stocks of U.S. companies with a focus on value
stocks. Value stocks are those we believe are currently undervalued by the
market. We look for companies undergoing positive change. If we are
correct and other investors recognize the value of the company, the price
of the stock may rise. We invest mainly in midsized and large companies.

MAIN RISKS

* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general
financial market conditions and factors related to a specific company
or industry. This risk is generally greater for small and midsized
companies, which tend to be more vulnerable to adverse developments.

* The risk that movements in financial markets will adversely affect
the price of the fund's investments, regardless of how well the
companies in which we invest perform. The market as a whole may not
favor the types of investments we make.

PERFORMANCE INFORMATION

[GRAPHIC OMMITTED: Vertical bar chart CALENDAR
YEAR TOTAL RETURNS FOR CLASS IB SHARES]

CALENDAR YEAR TOTAL RETURNS FOR CLASS IB SHARES

1998 6.11%

1999 0.26%

Year-to-date performance through 3/31/2000 was - 0.58%. During the
periods shown in the bar chart, the highest return for a quarter was
16.34% (quarter ending 12/31/98) and the lowest return for a quarter was
- -13.68% (quarter ending 9/30/99).

Average annual total returns (for periods ending 12/31/99)

Since
Past Inception
5 years (5/1/90)