Putnam Capital Manager

Putnam Government Money Market Subaccount

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

Putnam Government Money Market Subaccount

Fund description

Prior to April 30, 2016, the fund was known as Putnam Money Market Subaccount.

With an emphasis on high-quality, short-term fixed-income securities, this subaccount seeks to protect principal by attempting to maintain a constant $1.00 share price while providing shareholders with easy access to their money.

Sales story

Pursuing income while preserving capital with short-term investmentsCapital preservation: The fund invests in highly rated money market instruments to maintain a stable net asset value and protect investors' wealth.Attractive income: The portfolio managers use credit research to select a diverse portfolio of securities that offer above-average yields.Leading research: The managers, supported by Putnam's fixed-income research division, manage risk by analyzing individual securities and overall market conditions.

Management team

Lipper ranking ‡ as of 12/31/19

Category: U.S. Government Money Market Funds

  Percentile ranking Rank/Funds in category
10 yrs. 79% 39/49
1 yr. 81% 44/54
3 yrs. 77% 42/54
5 yrs. 76% 41/53

Risk characteristics as of 12/31/19

Avg. Eff. Maturity --
Avg. Eff. Duration --
Avg. Coupon --
Avg. Yield to Maturity --

Capital gains, if any, are taxable for federal, and in most cases, state purposes. For some investors, investment income may be subject to the federal alternative minimum tax. Income from federally exempt funds may be subject to state and local taxes. Withdrawals prior to age 59 1/2 may be subject to a 10% IRS penalty.

Credit qualities are shown as a percentage of portfolio value. A bond rated P-1 for Moody's, A-1 for Standard & Poor's, or F1 for Fitch or, if unrated, deemed to be of comparable quality by Putnam, is considered a Tier 1 security under SEC rules. Ratings vary over time. The fund itself has not been rated by an independent rating agency.

‡ Lipper is an industry research firm whose rankings are based on total return performance, vary over time, and do not reflect the effects of sales charges. Past performance is not indicative of future results.

Quick facts as of 12/31/19

Fiscal Year End December
Asset Class Putnam Capital Manager
Subaccount Status Open to new investors
Number of issuers 6
Turnover (fiscal year end) --
Net Assets $86M
Inception Date 02/01/88

Holdings

United States of America 17.46%
Federal Home Loan Mortgage Corp 8.12%
Federal Home Loan Bank 5.12%
Federal Farm Credit Bank 4.88%
Federal National Mortgage Association 4.12%
Top issuers, total: 39.70%

Top issuers as of 12/31/19
1: United States of America 17.46%
2: Federal Home Loan Mortgage Corp 8.12%
3: Federal Home Loan Bank 5.12%
4: Federal Farm Credit Bank 4.88%
5: Federal National Mortgage Association 4.12%
Issuers represent 39.70% of portfolio
Top issuers as of 11/30/19
1: United States of America 22.25%
2: Federal Home Loan Mortgage Corp 7.33%
3: Federal Farm Credit Bank 4.89%
4: Federal Home Loan Bank 4.25%
5: Federal National Mortgage Association 2.97%
Issuers represent 41.69% of portfolio
Top issuers as of 10/31/19
1: United States of America 20.19%
2: Federal Home Loan Mortgage Corp 9.48%
3: Federal Farm Credit Bank 5.17%
4: Federal Home Loan Bank 4.20%
5: Federal National Mortgage Association 3.85%
Issuers represent 42.89% of portfolio
Top issuers as of 09/30/19
1: United States of America 19.87%
2: Federal Home Loan Mortgage Corp 8.04%
3: Federal Farm Credit Bank 5.10%
4: Federal Home Loan Bank 3.80%
5: Federal National Mortgage Association 3.51%
Issuers represent 40.32% of portfolio

Portfolio Composition as of 12/31/19

Repurchase agreements 59.23%
U.S. Government agency debt 22.24%
U.S. Treasury debt 17.46%
Cash and net other assets 1.07%

Portfolio allocations will vary over time. The unclassified sector (where applicable) includes exchange traded funds and other securities not able to be classified by sector.

Capital gains, if any, are taxable for federal, and in most cases, state purposes. For some investors, investment income may be subject to the federal alternative minimum tax. Income from federally exempt funds may be subject to state and local taxes. Withdrawals prior to age 59 1/2 may be subject to a 10% IRS penalty.

Credit qualities are shown as a percentage of portfolio value. A bond rated P-1 for Moody's, A-1 for Standard & Poor's, or F1 for Fitch or, if unrated, deemed to be of comparable quality by Putnam, is considered a Tier 1 security under SEC rules. Ratings vary over time. The fund itself has not been rated by an independent rating agency.

For more information, visit the SEC website, which will display Putnam VT Government Money Market Fund's most recent 12 months of filings on Form N-MFP (publically available beginning 1/31/11). Prior to April 30, 2016, the fund was known as VT Money Market Fund.

Full holdings

Asset Liquidity

A multi-faceted view of the portfolio

Below you can find continuously updated views of the portfolio's daily and weekly liquid asset levels, its net asset value (NAV), and asset flows into and out of the portfolio. Together, these graphs provide insights on the portfolio's resilience during periods of heightened risk in the money market, and are the focus of government policies designed to maintain market stability.

Daily and weekly liquid assets as of

This graph displays the percentage of the fund's total assets invested in daily and weekly liquid assets as of the end of each business day during the preceding six months. The fund is required to invest at least 10% of its total assets in daily liquid assets and at least 30% of its total assets in weekly liquid assets. Daily liquid assets include cash, direct obligations of the U.S. government, securities that will mature or are subject to a demand feature that is exercisable and payable within one business day, and receivables scheduled to be paid within one business day. Weekly liquid assets include daily liquid assets, government agency discount notes with remaining maturities of 60 days or less, securities that will mature or are subject to a demand feature that is exercisable and payable within five business days, and receivables scheduled to be paid within five business days.

Fluctuating net asset value as of

This graph displays the fund's daily net asset value (NAV) per share during the preceding six months as if it were calculated using the market value of the fund's portfolio as of the end of each business day during that period.

The market-value or "shadow" net asset value per share shown below for a given day may differ from the official NAV used for transactions in fund shares. The official NAV is shown on the "Highlights" tab. The shadow net asset value per share shown below does not reflect the application of the amortized cost method of valuing fund portfolio holdings, which normally allows the fund to maintain an official NAV of $1.00 per share. When a shareholder buys or redeems fund shares, the official NAV would be used as the net asset value per share.

Daily net asset flows as of

This graph displays the dollar amount of net shareholder inflows or outflows of the fund as of the end of each business day during the preceding six months.

Consider these risks before investing: You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency . The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.