Putnam VT International Equity Fund

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Putnam VT International Equity Fund Putnam VT International Equity Fund Prospectus 4 | 30 | 20 IMPORTANT NOTICE: Delivery of paper fund reports In accordance with regulations adopted by the Securities and Exchange Commission, beginning on or after January 1, 2021, at the election of your insurance provider, you may not receive paper copies of the fund’s annual and semiannual reports in the mail from the insurance provider that offers your variable annuity contract or variable life insurance policy unless you specifically request it. Instead, they will be available on a website, and your insurance provider will notify you by mail whenever a new one is available, and provide you with a website link to access the report. If you wish to continue to receive paper reports free of charge after January 1, 2021, please contact your insurance provider. If you already receive these reports electronically, no action is required. FUND SYMBOLS CLASS IA CLASS IB — — Fund summary 2 What are the fund’s main investment strategies and related risks? 3 Who oversees and manages the fund? 6 How to buy and sell fund shares 7 How does the fund price its shares? 8 Distribution plan and payments to dealers 8 Policy on excessive short-term trading 9 Fund distributions and taxes 10 Financial highlights 11 This prospectus explains what you should know about Putnam These securities have not been approved or disapproved by VT International Equity Fund, one of the funds of Putnam Variable the Securities and Exchange Commission (SEC) nor has the SEC Trust, which is available for purchase by separate accounts of passed upon the accuracy or adequacy of this prospectus. Any insurance companies. Please read it carefully. Certain shares of statement to the contrary is a crime. other funds of the Trust are offered through other prospectuses. Fund summary may consider, among other factors, a company’s valuation, financial strength, growth potential, competitive position in its Goal industry, projected future earnings, cash flows and dividends Putnam VT International Equity Fund seeks capital appreciation. when deciding whether to buy or sell investments. We may also consider other factors that we believe will cause the stock price to Fees and expenses rise. We may also use derivatives, such as futures, options, certain The following table describes the fees and expenses you may foreign currency transactions, warrants and swap contracts, for pay if you buy and hold shares of the fund. The fees and expenses both hedging and non-hedging purposes. information does not reflect insurance-related charges or expenses borne by contract holders indirectly investing in the Risks fund. If it did, expenses would be higher. It is important to understand that you can lose money by investing in the fund. Annual fund operating expenses (expenses you pay each year as a percentage of the value of your investment) The value of investments in the fund’s portfolio may fall or fail to rise over extended periods of time for a variety of reasons, Distribution Total annual Management and service Other fund operating including general economic, political or financial market condi- Share class fees (12b-1) fees expenses expenses tions, investor sentiment and market perceptions, government Class IA 0.69% N/A 0.16% 0.85% actions, geopolitical events or changes, and factors related to a Class IB 0.69% 0.25% 0.16% 1.10% specific issuer, geography, industry or sector. These and other factors may lead to increased volatility and reduced liquidity Example in the fund’s portfolio holdings. Growth stocks may be more The following hypothetical example is intended to help you susceptible to earnings disappointments, and value stocks compare the cost of investing in the fund with the cost of may fail to rebound. These risks are generally greater for small investing in other funds. The example does not reflect insurance- and midsize companies. The value of international investments related charges or expenses. If it did, expenses would be higher. It traded in foreign currencies may be adversely impacted by fluctu- assumes that you invest $10,000 in the fund for the time periods ations in exchange rates. International investments, particularly indicated and then redeem or hold all your shares at the end of investments in emerging markets, may carry risks associated those periods. It assumes a 5% return on your investment each with potentially less stable economies or governments (such year and that the fund’s operating expenses remain the same. as the risk of seizure by a foreign government, the imposition of Your actual costs may be higher or lower. currency or other restrictions, or high levels of inflation), and may be or become illiquid. Share class 1 year 3 years 5 years 10 years Class IA $87 $271 $471 $1,049 Investments focused in a single region may be affected by Class IB $112 $350 $606 $1,340 common economic forces and other factors. In addition, events in any one country within the region may impact the other coun- Portfolio turnover tries or the region as a whole. Because the fund currently invests, The fund pays transaction-related costs, such as commissions, and may in the future invest, significantly in European companies, when it buys and sells securities (or “turns over” its portfolio). A the fund is particularly susceptible to economic, political, regula- higher turnover rate may indicate higher transaction costs. These tory and other events or conditions affecting issuers in Europe. costs, which are not reflected in annual fund operating expenses European financial markets have in recent years experienced or the above example, affect fund performance. The fund’s increased volatility due to concerns with some countries’ high turnover rate in the most recent fiscal year was 80%. levels of sovereign debt, budget deficits, and unemployment. Our use of derivatives may increase the risks of investing in Investments, risks, and performance the fund by increasing investment exposure (which may be Investments considered leverage) or, in the case of many over-the-counter We invest mainly in common stocks (growth or value stocks or instruments, because of the potential inability to terminate or sell both) of large and midsize companies outside the United States derivatives positions and the potential failure of the other party that we believe have favorable investment potential. For example, to the instrument to meet its obligations. we may purchase stocks of companies with stock prices that reflect a value lower than that which we place on the company. There is no guarantee that the investment techniques, analyses, Under normal circumstances, we invest at least 80% of the fund’s or judgments that we apply in making investment decisions net assets in equity investments. This policy may be changed for the fund will produce the intended outcome or that the only after 60 days’ notice to shareholders. We invest mainly in investments we select for the fund will perform as well as other developed countries, but may invest in emerging markets. We securities that were not selected for the fund. We, or the fund’s 2 Prospectus of the Trust other service providers, may experience disruptions or operating Purchase and sale of fund shares errors that could negatively impact the fund. Fund shares are offered to separate accounts of various insurers. The fund requires no minimum investment, but insurers may The fund may not achieve its goal, and it is not intended to be require minimum investments from those purchasing variable a complete investment program. An investment in the fund is insurance products for which the fund is an underlying invest- not insured or guaranteed by the Federal Deposit Insurance ment option. Insurers may purchase or sell shares on behalf of Corporation or any other government agency. separate accounts by submitting an order to Putnam Retail Performance Management any day the New York Stock Exchange (NYSE) is The performance information below gives some indication of open. Some restrictions may apply. the risks associated with an investment in the fund by showing the fund’s performance year to year and over time. The perfor- Tax information mance information does not reflect insurance-related charges Generally, owners of variable insurance contracts are not taxed or expenses. If it did, performance would be lower. Please currently on income or gains realized with respect to such remember that past performance is not necessarily an indication contracts. However, some distributions from such contracts of future results. may be taxable at ordinary income tax rates and distributions to contract owners younger than 59½ may be subject to a 10% Annual total returns for class IA shares penalty tax. For more information, please see the prospectus (or other offering document) for your variable insurance contract. 28.44% Year-to- 26.93% 25.55% 22.21% date per- formance –20.40% Payments to insurance companies through 10.27% 3/31/20 The fund is offered as an underlying investment option for vari- 0.41% Best able insurance contracts. The fund and its related companies calendar 18.98% –2.21% quarter may make payments to the sponsoring insurance company (or –6.58% Q3 2010 its affiliates) and dealers for distribution and/or other services. Worst –16.71% These payments may create an incentive for the insurance –18.95% calendar –24.07% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 quarter company to include the fund, rather than another investment, Q3 2011 as an option in its products and may create a conflict of interest for dealers in recommending the fund over another investment. Average annual total returns (for periods ended 12/31/19) The prospectus (or other offering document) for your variable insurance contract may contain additional information about Share class 1 year 5 years 10 years these payments.
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