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.

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 09/30/20

Category: U.S. Government Money Market Funds

  Percentile ranking Rank/Funds in category
10 yrs. 78% 44/56
1 yr. 86% 51/59
3 yrs. 77% 45/58
5 yrs. 76% 44/57

Risk characteristics as of 09/30/20

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

‡ 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 09/30/20

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 $87M
Inception Date 02/01/88

Holdings

United States of America 14.26%
Federal National Mortgage Association 10.72%
Federal Home Loan Mortgage Corp 7.36%
Federal Farm Credit Bank 6.39%
Federal Home Loan Bank 5.16%
Top issuers, total: 43.89%


Top issuers as of 09/30/20
1: United States of America 14.26%
2: Federal National Mortgage Association 10.72%
3: Federal Home Loan Mortgage Corp 7.36%
4: Federal Farm Credit Bank 6.39%
5: Federal Home Loan Bank 5.16%
Issuers represent 43.89% of portfolio
Top issuers as of 08/31/20
1: United States of America 15.30%
2: Federal National Mortgage Association 9.86%
3: Federal Home Loan Mtg Corp 9.64%
4: Federal Home Loan Bank 6.10%
5: Federal Farm Credit Bank 4.87%
Issuers represent 45.77% of portfolio
Top issuers as of 07/31/20
1: United States of America 23.17%
2: Federal Home Loan Mortgage Corp 12.30%
3: Federal National Mortgage Association 8.22%
4: Federal Home Loan Bank 4.80%
5: Federal Farm Credit Bank 4.74%
Issuers represent 53.23% of portfolio
Top issuers as of 06/30/20
1: United States of America 26.51%
2: Federal Home Loan Mortgage Corp 15.76%
3: Federal National Mortgage Association 7.09%
4: Federal Farm Credit Bank 6.70%
5: Federal Home Loan Bank 4.79%
Issuers represent 60.85% of portfolio

Portfolio Composition as of 09/30/20

Repurchase agreements 55.60%
U.S. government agency debt 29.63%
U.S. Treasury debt 14.26%
Cash and net other assets 0.51%

Consider these risks before investing: Our investment techniques, analyses, and judgments may not produce the outcome we intend. The investments we select for the fund may not perform as well as other securities that we do not select for the fund. We, or the fund’s other service providers, may experience disruptions or operating errors that could have a negative effect on the fund. You can 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. The values of money market investments usually rise and fall in response to changes in interest rates. Interest rate risk is generally lowest for investments with short maturities (a significant part of the fund’s investments). Changes in the financial condition of an issuer or counterparty, changes in specific economic or political conditions that affect a particular type of issuer, and changes in general economic or political conditions can increase the risk of default by an issuer or counterparty, which can affect a security’s or instrument’s credit quality or value.

Certain securities in which the fund may invest, including securities issued by certain U.S. government agencies and U.S. government sponsored enterprises, are not guaranteed by the U.S. government or supported by the full faith and credit of the United States. Mortgage-backed investments carry the risk that they may increase in value less when interest rates decline and decline in value more when interest rates rise. We may have to invest the proceeds from prepaid investments, including mortgage- and asset-backed investments, in other investments with less attractive terms and yields.

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.