Fixed Income

Putnam VT Mortgage Securities Fund

Overview

See the risks and other important information.

Fund Facts

Fund description

The fund seeks as high a level of current income as the portfolio managers believe is consistent with preservation of capital by investing in mortgage sectors, including agency mortgage-backed securities (MBS) and collateralized mortgage obligations, and non-agency residential MBS and commercial MBS, and asset-backed securities.

Benchmark: Bloomberg U.S. MBS Index
Additional Benchmark: Putnam VT Mortgage Securities Linked Benchmark
Fund Inception Date: 02/01/2000
Share Class Inception Date: 02/01/2000

Sales Charges, Expenses & Fees

As of 05/01/2025

Gross Expense Ratio²: 0.84%
Net Expense Ratio^2,3: 0.50%
12b-1 Fee: —

Identifiers

Ticker: —
Fund Number: 5426
CUSIP Code: 746896463
Bloomberg Code: VPAGIAV US

Top Sectors

View portfolio section for additional info

As of 12/31/2025 - Notional Exposure % of Total (Updated Monthly)

Top Sectors
Agency Pass-through150.56%
Agency CMO28.54%
Commercial Mortgage-Backed Securities25.47%
Residential MBS (Non-agency)21.54%
Asset-Backed Securities0.47%

Additional Fund Info

Asset Class: Fixed Income
Morningstar Category⁴: Securitized Bond - Diversified
Lipper Classification: U.S. Mortgage Funds
Investment Style: Securitized

Manager and Commentary

About the Team

Franklin Templeton Fixed Income

A global leader in fixed income, the team strives to provide consistent and resilient returns by combining deep fundamental research with rigorous portfolio construction. This solutions-drives approach means maintaining portfolio and risk exposures that align with client expectations.

Franklin Templeton Fixed Income

Managed Fund Since 2007

Managed Fund Since 2017

Managed Fund Since 2024

Latest Insights

January 26, 2026

European fixed income outlook—cautious optimism

January 20, 2026

The municipal bond market outlook: Continued stability—a good sign for investors

January 15, 2026

Flash Insights: Addressing US housing affordability—a targeted financing approach

January 8, 2026

Flash Insights: Notes on Venezuela

Portfolio

Assets

As of12/31/2025 (Updated Monthly)

Total Net Assets: $25.74 Million

Positions

As of 12/31/2025 (Updated Monthly)

Number of Holdings

Fund: 381

Portfolio Statistics

As of 12/31/2025 (Updated Monthly)

Weighted Average Life

Fund: 7.90 Years

Effective Duration

Fund: 5.51 Years

Sector Exposure
Notional exposure figures are estimated and are intended to show the portfolio's direct exposure to securities and indirect exposure, through derivatives. Direct and indirect exposures are subject to change over time and methodologies for calculating indirect exposures vary by derivative type. Portfolio breakdown percentages may not total 100% and may be negative due to rounding, use of derivatives, unsettled trades or other factors.

As of 12/31/2025 - Notional Exposure % of Total (Updated Monthly)

Sector Exposure
Sector	% of Total	Benchmark
Agency Pass-through	150.56%	100.00%
Agency CMO	28.54%	—
Commercial Mortgage-Backed Securities	25.47%	—
Residential MBS (Non-agency)	21.54%	—
Asset-Backed Securities	0.47%	—
Net Cash	20.12%	—

Holdings
As of 12/31/2025 (Updated Monthly)

FNMA FN30 TBA UMBS 05.5000 01/01/2056

FNMA FN30 TBA UMBS 02.0000 01/01/2055

FNMA FN30 TBA UMBS 06.0000 01/01/2055

FNMA FN30 TBA UMBS 03.5000 01/01/2055

FNMA FN30 TBA UMBS 02.5000 01/01/2056

FNMA FN30 TBA UMBS 04.0000 01/01/2056

FNMA FN30 TBA UMBS 03.0000 01/01/2055

GNMA GII30 TBA 02.5000 01/01/2056

GNMA GII30 TBA 06.5000 01/01/2056

GNMA GII30 TBA 06.0000 01/01/2056

Portfolio holdings are based on the total portfolio and are subject to change at any time. Holdings are provided for informational purposes only and should not be construed as a recommendation to purchase or sell any security.

Distributions & Tax

Distribution Frequency
Ex-Dividend Fund: This type of fund declares periodic dividends, which are paid to shareholders who own the fund as of a certain date - known as the "record date". After the record date, the fund is said to be trading "ex-dividend"(literally, without the dividend). An investor who buys shares during the interval between the record date and the payment of the dividend does not receive the dividend. A fund that's in the ex-dividend period is marked with an "x" in newspaper listings.

Daily Accrual Fund: This type of fund typically declares income dividends each day that its net asset value is calculated. These dividends remain in the fund until the designated reinvestment or payment date and are distributed to the shareholders, generally once a month, as additional shares or cash, respectively.: AnnuallyThis fund is an ex-Dividend fund
Capital Gain Distributions: March

Proposed 2026 Distribution dates for Putnam funds (excluding ETFs).

Final composition of the current year’s distribution—income, capital gains and/or return of capital—are based on US tax rules and will be determined by February of the following year. For tax characterization of a distribution, such as return of capital and tax-exempt income, click on the “Tax Information” tab above.

Distributions Per Share
Distributions with future dates are estimates and those figures are not final

03/28/2025

Annually, a fund must distribute all realized capital gains net of realized losses, so the fund will not be subject to an entity level income tax. A fund’s capital gain distribution in a particular year may be a result of the disposition of holdings that appreciated in value during prior years. Thus, while the fund may gain or lose value over the course of a year, a capital gain distribution paid by the fund may not be indicative of current performance of the fund.

The distributable amount of net capital gains are paid on a per-share basis to all investors who hold shares of the fund on the record date of the distribution and are recognized by the shareholder for tax purposes as of the ex-date of the distribution, regardless of when the gains or losses arose in the fund. Net gains on holdings held long term by the fund would be distributed to shareholders as a long-term capital gain distribution no matter how long the shareholder has owned shares in the fund.

Refer to the fund’s annual report or statement of additional information for specific information regarding distributions.

Documents

Regulatory Documents

Regulatory Documents
Checkbox	Name	Download
Checkbox	Annual Financial Statements and Other Information - Putnam VT Mortgage Securities FundMailed hardcopies unavailable.	Download Document
Checkbox	Annual Report - Putnam VT Mortgage Securities Fund - Class IA	Download Document
Checkbox	Semi-Annual Report - Putnam VT Mortgage Securities Fund - Class IA	Download Document
Checkbox	Semi-Annual Financial Statements and Other Information - Putnam VT Mortgage Securities FundMailed hardcopies unavailable.	Download Document
Checkbox	Prospectus - Putnam VT Mortgage Securities Fund	Download Document
Checkbox	Summary Prospectus - Putnam VT Mortgage Securities Fund	Download Document
Checkbox	Statement Of Additional Information - Putnam Variable TrustMailed hardcopies unavailable.	Download Document
Checkbox	Fiscal Q1 Holdings - Putnam VT Mortgage Securities FundMailed hardcopies unavailable.	Download Document
Checkbox	Fiscal Q3 Holdings - PUTNAM VARIABLE TRUST	Download Document

Risks

All investments involve risks, including possible loss of principal. Fixed income securities involve interest rate, credit, inflation and reinvestment risks, and possible loss of principal. As interest rates rise, the value of fixed income securities falls. Asset-backed, mortgage-backed or mortgage-related securities are subject to prepayment and extension risks. Low-rated, high-yield bonds are subject to greater price volatility, illiquidity and possibility of default. To the extent the portfolio invests in a concentration of certain securities, regions or industries, it is subject to increased volatility. Derivative instruments can be illiquid, may disproportionately increase losses, and have a potentially large impact on performance. Active management does not ensure gains or protect against market declines. The manager may consider environmental, social and governance (ESG) criteria in the research or investment process; however, ESG considerations may not be a determinative factor in security selection. In addition, the manager may not assess every investment for ESG criteria, and not every ESG factor may be identified or evaluated. These and other risks are discussed in the fund’s prospectus.

Important Information

Past performance is no guarantee of future results. These portfolios are available as investment options under a variable annuity or variable life contract. Shares of the portfolios are offered only to insurance company separate accounts that fund certain variable annuity or life contracts. These portfolios may not be available in all states and may only be offered in certain variable products. Please refer to the prospectuses. Variable annuities are long-term, tax-deferred investment vehicles designed for retirement purposes. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Withdrawals made prior to age 59 1/2 are subject to a 10% IRS penalty charge and/or surrender charges. Investments in a variable annuity are subject to market risks, including loss of principal. Guarantees are based on the claims-paying ability of the insurer.

VARIABLE ANNUITIES ARE SOLD BY PROSPECTUS ONLY. AN INVESTOR SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES OF THE INSURANCE CONTRACT AND THE UNDERLYING PORTFOLIO CAREFULLY BEFORE INVESTING. THE PROSPECTUSES CONTAIN THIS AND OTHER IMPORTANT INFORMATION ABOUT THE INSURANCE CONTRACT AND THE UNDERLYING PORTFOLIO. FOR A FREE PROSPECTUS ON THE UNDERLYING PORTFOLIO, PLEASE CLICK ON THE PROSPECTUS LINK. AN INVESTOR SHOULD READ THE PROSPECTUSES CAREFULLY BEFORE INVESTING.

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Important data provider notices and terms available at www.franklintempletondatasources.com.

CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Indexes are unmanaged and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges.

The Bloomberg U.S. MBS Index is an unmanaged index of agency mortgage-backed pass-through securities (both fixed-rate and hybrid adjustable-rate mortgages) guaranteed by Ginnie Mae, Fannie Mae, and Freddie Mac. Source: Bloomberg Indices.

Franklin Distributors, LLC. Member FINRA/SIPC. Investment Products: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE.
Reports and other information about the fund are available on the EDGAR Database on the SEC's Internet site at www.sec.gov.
FINANCIAL ADVISORS: Please note that not all share classes may be available for sale at your firm. Please call Franklin Templeton at (800) 530-2432 for more information.

Footnotes

Net Asset Value - the amount per share you would receive if you sold shares that day. NAV Change indicates a change in the Net Asset Value from the previous business day.
Gross Expense Ratio reflects the total annual operating expenses for the share class shown, prior to the deduction of any waiver or reimbursement. Actual expenses may be higher and may impact portfolio returns. Net Expense Ratio reflects total expenses after any fee waivers, implemented expense caps or reimbursements. If a fund has contractual fee waivers, expense caps and/or reimbursements, the expiration date can be found by clicking on the information button next to the net expense ratio. Additional amounts may be voluntarily waived and/or reimbursed and may be modified or discontinued at any time without notice. Expense ratios are as of the most recent prospectus or annual report.
Net Expense Ratio represents the expense ratio applicable to investors.
©2025 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Credit Quality is a measure of a bond issuer's ability to repay interest and principal in a timely manner. The credit ratings shown are based on each portfolio security's rating as provided by S&P Global Ratings, Moody's Investors Service and/or Fitch Ratings, Inc. and typically range from AAA (highest) to D (lowest), or an equivalent and/or similar rating. For this purpose, if two or more of the agencies have assigned differing ratings to a security, the highest rating is used. Securities that are unrated by all three agencies are reflected as such. The credit quality of the investments in the portfolio does not apply to the stability or safety of the portfolio. The methodology used for the calculation of credit quality ratings displayed may differ from the methodology for monitoring investment limits, if applicable. Please note, the portfolio itself has not been rated by an independent rating agency.

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