Putnam
Latin America
Fund
SEMIANNUAL REPORT ON PERFORMANCE AND OUTLOOK
2-28-99
[LOGO: BOSTON * LONDON * TOKYO]
The following report contains a list of your fund's portfolio holdings and
complete financial statements for the six months ended 2/28/99. Additional
details, including fund strategy, performance, and managers' outlook, will
be provided in the annual report, which will cover the 12 months ended
8/31/99.
<TABLE>
<CAPTION>
Portfolio of investments owned
February 28, 1999 (Unaudited)
COMMON STOCKS (98.6%) (a)
NUMBER OF SHARES VALUE
<S> <C> <C> <C>
Argentina (12.6%)
- --------------------------------------------------------------------------------------------------------------------------
2,500 Banco Rio de La Plata S.A. ADR $ 23,594
5,600 Perez Companc S.A. Class B 22,801
1,700 Telefonica de Argentina S.A. ADR 49,725
3,900 Transportadora de Gas del Sur ADR 38,513
800 YPF S.A. ADR 23,200
--------------
157,833
Brazil (30.3%)
- --------------------------------------------------------------------------------------------------------------------------
19,200 Aracruz Celulose S.A. ADR 24,591
3,200 Banco Bradesco S.A. ADR 12,000
30 Banco Itau S.A. BRC 10,567
2,614 Cia Cervejaria Brahma ADR 19,932
700 Companhia Brasileira de Distribuicao Grupo Pao
de Acucar ADR 7,831
1,168 Companhia Energetica de Minas Gerais ADR 15,184
2,600 Companhia Paranaense de Energia-Copel ADR 11,700
400 Companhia Paulista de Forca e Luz -- CPFL 21,677
3,300 Companhia Vale do Rio Doce ADR 41,250
2,400 Embratel Participacoes S.A. ADR (NON) 32,700
1,600 Empresa Bras Aeronautica 11,042
2,000 Gerdau S.A. 13,793
2,200 Petroleo Brasileiro S/A-Petrobras ADR 16,775
2,500 Souza Cruz S.A. 16,010
560 Tele Centro Sul Participacoes S.A. (NON) 22,400
1,200 Tele Norte Leste Participacoes S.A. ADR (NON) 12,000
800 Tele Sudeste Celular Participacoes S.A. ADR (NON) 10,650
1,680 Telesp Celular Participacoes S.A. ADR (NON) 35,280
2,600 Telesp Participacoes S.A. ADR (NON) 42,900
--------------
378,282
Chile (8.3%)
- --------------------------------------------------------------------------------------------------------------------------
1,500 Banco Santander Chile ADR 21,469
900 Chilectra S.A. 144A ADR 17,550
1,200 Cia de Telecomunicationes de Chile S.A. ADR 26,550
1,000 Enersis S.A. ADR 24,375
800 Madeco S. A. ADR 5,500
300 Sociedad Quimica y Minera de Chile S.A. ADR 9,000
--------------
104,444
Mexico (44.2%)
- --------------------------------------------------------------------------------------------------------------------------
7,600 Alfa S.A. de C.V. Class A 18,865
5,800 Carso Global Telecom (NON) 24,975
12,700 Cemex S.A. de C.V. Class B (NON) 39,438
1,700 Coca-Cola Femsa S.A. ADR 23,481
8,000 Corporacion Interamericana de Entretenimiento S.A. (NON) 21,074
14,000 Corporacion Moctezuma, S.A. de C.V. (NON) 13,220
800 Desc S.A. de C.V. ADR 15,350
13,000 Empaques Ponderosa, S.A. de C.V. (NON) 6,928
500 Empresas La Moderna S.A. de C.V. ADR 11,625
10,000 Fomento Economico Mexicano, S.A. de C.V. 26,494
8,700 Grupo Carso S.A. de C.V. 29,176
26,200 Grupo Financiero Banamex Accival, S.A. de C.V. Class B (NON) 40,349
1,500 Grupo Imsa S.A. de C.V. ADR (NON) 19,875
14,300 Grupo Industrial Bimbo S.A. de C.V. 28,687
7,600 Grupo Mexico S.A. 21,060
20,200 Grupo Modelo S.A. de C.V. 45,230
1,600 Grupo Televisa S.A.GDR (NON) 45,000
2,120 Telefonos de Mexico S.A. ADR Class L 121,238
--------------
552,065
Peru (3.2%)
- --------------------------------------------------------------------------------------------------------------------------
1,500 Compania de Minas Buenaventura S.A. ADR 20,156
1,700 Telefonica del Peru S.A. ADR 20,080
--------------
40,236
--------------
Total Common Stocks (cost $1,589,544) $ 1,232,860
SHORT-TERM INVESTMENTS (2.5%)(a) (cost $31,000)
PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------------------------------------------------------------
$ 31,000 Interest in $310,913,000 joint repurchase agreement
dated February 26, 1999 with SBC Warburg due
March 1, 1999 with respect to various U.S. Treasury
obligations -- maturity value of $31,012 for an
effective yield of 4.74% $ 31,000
- --------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $1,620,544) (b) $ 1,263,860
- --------------------------------------------------------------------------------------------------------------------------
(a) Percentages indicated are based on net assets of $1,250,065.
(b) The aggregate identified cost on a tax basis is $1,620,549 resulting in gross unrealized appreciation and
depreciation of $38,891 and $395,580, respectively, or net unrealized depreciation of $356,689.
(NON) Non-income-producing security.
144A after the name of a security represents those exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified
institutional buyers.
ADR, or GDR after the name of a foreign holding stands for American Depository Receipts, or Global Depository
Receipts respectively, representing ownership of foreign securities on deposit with a domestic custodian bank.
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of assets and liabilities
February 28, 1999 (Unaudited)
<S> <C>
Assets
- -----------------------------------------------------------------------------------------------
Investments in securities, at value
(identified cost $1,620,544) (Note 1) $1,263,860
- -----------------------------------------------------------------------------------------------
Cash 698
- -----------------------------------------------------------------------------------------------
Foreign currency (cost $20,806) 21,016
- -----------------------------------------------------------------------------------------------
Dividends receivable 11,412
- -----------------------------------------------------------------------------------------------
Receivable for shares of the fund sold 17
- -----------------------------------------------------------------------------------------------
Receivable for securities sold 4,675
- -----------------------------------------------------------------------------------------------
Receivable from Manager (Note 2) 2,192
- -----------------------------------------------------------------------------------------------
Total assets 1,303,870
Liabilities
- -----------------------------------------------------------------------------------------------
Payable for securities purchased 41,851
- -----------------------------------------------------------------------------------------------
Payable for investor servicing and custodian fees (Note 2) 101
- -----------------------------------------------------------------------------------------------
Payable for compensation of Trustees (Note 2) 68
- -----------------------------------------------------------------------------------------------
Payable for administrative services (Note 2) 7
- -----------------------------------------------------------------------------------------------
Other accrued expenses 11,778
- -----------------------------------------------------------------------------------------------
Total liabilities 53,805
- -----------------------------------------------------------------------------------------------
Net assets $1,250,065
Represented by
- -----------------------------------------------------------------------------------------------
Paid-in capital (Notes 1, 4 and 5) $2,193,744
- -----------------------------------------------------------------------------------------------
Distributions in excess of net investment income (Note 1) (10,548)
- -----------------------------------------------------------------------------------------------
Accumulated net realized loss on investments and
foreign currency transactions (Note 1) (574,490)
- -----------------------------------------------------------------------------------------------
Net unrealized depreciation of investments and assets and
liabilities in foreign currencies (358,641)
- -----------------------------------------------------------------------------------------------
Total -- Representing net assets applicable to
capital shares outstanding $1,250,065
Computation of net asset value and offering price
- -----------------------------------------------------------------------------------------------
Net asset value and redemption price per share
($1,250,065 divided by 264,127 shares) $4.73
- -----------------------------------------------------------------------------------------------
Offering price per share (100/94.25 of $4.73)* $5.02
- -----------------------------------------------------------------------------------------------
* On single retail sales of less than $50,000. On sales of $50,000 or more and on group
sales the offering price is reduced.
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of operations
Six months ended February 28, 1999 (Unaudited)
<S> <C>
Investment income:
- -----------------------------------------------------------------------------------------------
Dividends (net of foreign tax of $1,960) $22,542
- -----------------------------------------------------------------------------------------------
Interest 40
- -----------------------------------------------------------------------------------------------
Total investment income 22,582
Expenses:
- -----------------------------------------------------------------------------------------------
Compensation of Manager (Note 2) 6,264
- -----------------------------------------------------------------------------------------------
Investor servicing and custodian fees (Note 2) 1,191
- -----------------------------------------------------------------------------------------------
Compensation of Trustees (Note 2) 951
- -----------------------------------------------------------------------------------------------
Administrative services (Note 2) 20
- -----------------------------------------------------------------------------------------------
Reports to shareholders 2,037
- -----------------------------------------------------------------------------------------------
Registration fees 55
- -----------------------------------------------------------------------------------------------
Auditing 11,643
- -----------------------------------------------------------------------------------------------
Legal 1,250
- -----------------------------------------------------------------------------------------------
Postage 21
- -----------------------------------------------------------------------------------------------
Other 3
- -----------------------------------------------------------------------------------------------
Fees waived and reimbursed by Manager (Note 2) (13,098)
- -----------------------------------------------------------------------------------------------
Total expenses 10,337
- -----------------------------------------------------------------------------------------------
Expense reduction (Note 2) (1,177)
- -----------------------------------------------------------------------------------------------
Net expenses 9,160
- -----------------------------------------------------------------------------------------------
Net investment income 13,422
- -----------------------------------------------------------------------------------------------
Net realized loss on investments (Notes 1 and 3) (474,051)
- -----------------------------------------------------------------------------------------------
Net realized loss on foreign currency transactions (Note 1) (1,316)
- -----------------------------------------------------------------------------------------------
Net unrealized depreciation of assets and liabilities in
foreign currencies during the period (Note 1) (2,001)
- -----------------------------------------------------------------------------------------------
Net unrealized appreciation of investments during the period 571,199
- -----------------------------------------------------------------------------------------------
Net gain on investments 93,831
- -----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $107,253
- -----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of changes in net assets
For the period
March 23, 1998
Six months ended (commencement
February 28 of operations)
1999* to August 31, 1998
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (decrease) in net assets
- -----------------------------------------------------------------------------------------------------------------------
Operations:
- -----------------------------------------------------------------------------------------------------------------------
Net investment income $ 13,422 $ 15,595
- -----------------------------------------------------------------------------------------------------------------------
Net realized loss on investments and foreign
currency transactions (475,367) (100,515)
- -----------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of
investments and assets and liabilities in foreign currencies 569,198 (927,839)
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations 107,253 (1,012,759)
- -----------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
- -----------------------------------------------------------------------------------------------------------------------
From net investment income (38,173) --
- -----------------------------------------------------------------------------------------------------------------------
Increase from capital share transactions (Note 4) 47,766 145,978
- -----------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 116,846 (866,781)
Net assets
- -----------------------------------------------------------------------------------------------------------------------
Beginning of period (Note 5) 1,133,219 2,000,000
- -----------------------------------------------------------------------------------------------------------------------
End of period (including distribution in excess of net
investment and undistributed net investment income
of $10,548 and $14,203, respectively) $1,250,065 $1,133,219
- -----------------------------------------------------------------------------------------------------------------------
* Unaudited
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Financial highlights
(For a share outstanding throughout the period)
- ------------------------------------------------------------------------------------------------------------------------------------
Six months
ended For the period
Per-share February 28 March 23, 1998+
operating performance (Unaudited) to August 31
- ------------------------------------------------------------------------------------------------------------------------------------
1999 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value,
beginning of period $4.46 $8.50
- ------------------------------------------------------------------------------------------------------------------------------------
Investment operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (a)(d) .05 .06
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments .37 (4.10)
- ------------------------------------------------------------------------------------------------------------------------------------
Total from
investment operations .42 (4.04)
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions:
- ------------------------------------------------------------------------------------------------------------------------------------
From net
investment income (.15) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $4.73 $4.46
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
- ------------------------------------------------------------------------------------------------------------------------------------
Total return at
net asset value (%)(b) 9.37* (47.53)*
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $1,250 $1,133
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(c)(d) .82* .73*
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (%)(d) 1.06* .87*
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 79.15* 44.39*
- ------------------------------------------------------------------------------------------------------------------------------------
+ Commencement of operations.
* Not annualized.
(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 return assumes dividend reinvestment and does not reflect the effect of sales charges.
(c) Includes amounts paid through expense offset arrangements (Note 2).
(d) Reflects an expense limitation in effect during the period. As a result of such limitation,
expenses for the fund for the periods ended February 28, 1999 and August 31, 1998 reflect a
reduction of $0.05 and $0.08 per share, respectively (Note 1).
</TABLE>
Notes to financial statements
February 28, 1999 (Unaudited)
Note 1
Significant accounting policies
Putnam Latin America Fund (the "fund") is a series of Putnam Fund Trust
(the "trust) which is registered under the Investment Company Act of 1940,
as amended, as an open-end diversified management investment company. The
objective of the fund is to seek long-term capital appreciation by
investing primarily in equity securities of which at least 65% is of Latin
America companies.
The following is a summary of significant accounting policies consistently
followed by the fund in the preparation of its financial statements. The
preparation of financial statements is in conformity with generally
accepted accounting principles and requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities. Actual results could differ from those estimates.
A) Security valuation Investments for which market quotations are readily
available are stated at market value which is determined using the last
reported sale price on its principle exchange, or if no sales are reported
- -- as is the case of some securities traded over the counter -- the last
reported bid price. Short-term investments having remaining maturities of
60 days or less are stated at amortized cost, which approximates market
value. All other investments are stated at fair market value following
procedures approved by the Trustees. Foreign securities quoted in foreign
currencies are translated into U.S. dollars at the current exchange rate.
B) Joint trading account Pursuant to an exemptive order issued by the
Securities and Exchange Commission, the fund may transfer uninvested cash
balances into a joint trading account along with the cash of other
registered investment companies and certain other accounts managed by
Putnam Investment management, Inc. ("Putnam Management"), the fund's
Manager, a wholly-owned subsidiary of Putnam Investments, Inc. These
balances may be invested in one or more repurchase agreements and/or
short-term money market instruments.
C) Repurchase agreements The fund, or any joint trading account, through
its custodian, receives delivery of the underlying securities, the market
value of which at the time of purchase is required to be in an amount at
least equal to the resale price, including accrued interest. Collateral
for certain tri-party repurchase agreements is held at the counterparty's
custodian in a segregated account for the benefit of the fund and the
counterparty. Putnam Management is responsible for determining that the
value of these underlying securities is at all times at least equal to the
resale price, including accrued interest.
D) Security transactions and related investment income Security
transactions are accounted for on the trade date (date the order to buy or
sell is executed). Dividend income is recorded on the ex-dividend date
except that certain dividends from foreign securities are recorded as soon
as the fund is informed of the ex-dividend date.
E) Foreign currency translation The accounting records of the fund are
maintained in U.S. dollars. The market value of foreign securities,
currency holdings, and other assets and liabilities are recorded in the
books and records of the fund after translation to U.S. dollars based on
the exchange rates on that day. The cost of each security is determined
using historical exchange rates. Income and withholding taxes are
translated at prevailing exchange rates when accrued or incurred. The fund
does not isolate that portion of realized or unrealized gains or losses
resulting from changes in the foreign exchange rate on investments from
fluctuations arising from changes in the market prices of the securities.
Such gains and losses are included with the net realized and unrealized
gain or loss on investments. Net realized gains and losses on foreign
currency transactions represent net exchange gains or losses on closed
forward currency contracts, disposition of foreign currencies and the
difference between the amount of investment income and foreign withholding
taxes recorded on the fund's books and the U.S. dollar equivalent amounts
actually received or paid. Net unrealized appreciation and depreciation of
assets and liabilities in foreign currencies arise from changes in the
value of open forward currency contracts and assets and liabilities other
than investments at the period end, resulting from changes in the exchange
rate.
F) Federal taxes It is the policy of the fund to distribute all of its
taxable (for tax exempt and municipal bond funds exclude "taxable") income
within the prescribed time and otherwise comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies. It is
also the intention of the fund to distribute an amount sufficient to avoid
imposition of any excise tax under Section 4982 of the Internal Revenue
Code of 1986, as amended. Therefore, no provision has been made for
federal taxes on income, capital gains or unrealized appreciation on
securities held nor for excise tax on income and capital gains.
G) Distributions to shareholders Distributions to shareholders from net
investment income are recorded by the fund on the ex-dividend date.
Capital gain distributions, if any, are recorded on the ex-dividend date
and paid at least annually. The amount and character of income and gains
to be distributed are determined in accordance with income tax regulations
which may differ from generally accepted accounting principles.
Reclassifications are made to the fund's capital accounts to reflect
income and gains available for distribution (or available capital loss
carryovers) under income tax regulations.
H) Expenses of the trust Expenses directly charged or attributable to any
fund will be paid from the assets of that fund. Generally, expenses of the
trust will be allocated among and charged to the assets of each fund on a
basis that the Trustees deem fair and equitable, which may be based on the
relative assets of each fund or the nature of the services performed and
relative applicability to each fund.
I) Line of credit The fund has entered into a committed line of credit
with certain banks. This line of credit agreement includes restrictions
that the fund maintain an asset coverage ratio of at least 300% and
borrowings must not exceed prospectus limitations. For the six months
ended February 28, 1999, the fund had no borrowings against the line of
credit.
Note 2
Management fee, administrative
services and other transactions
Compensation of Putnam Management, for management and investment advisory
services is paid quarterly based on the average net assets of the fund.
Such fee is based on the following annual rates: 1.00% of the first $500
million of average net assets, 0.90% of the next $500 million, 0.85% of
the next $500 million, and 0.80% of the next $500 million, 0.775% of the
next $5 billion, 0.755% of the next $5 billion, 0.74% of the next $5
billion and 0.73% thereafter.
Putnam Management has agreed to limit its compensation (and, to the extent
necessary, bear other expenses) through December 31, 1999, to the extent
that expenses of the fund (exclusive of brokerage commissions, interest,
taxes, deferred organizational and extraordinary expense, credits from
Putnam Fiduciary Trust Company (PFTC), a subsidiary of Putnam Investments,
Inc. and payments under the Trust's distribution plan) would exceed an
annual rate of 1.65% of the fund's average net assets.
The fund reimburses Putnam Management an allocated amount for the
compensation and related expenses of certain officers of the fund and
their staff who provide administrative services to the fund. The aggregate
amount of all such reimbursements is determined annually by the Trustees.
Custodial functions for the fund's assets are provided by PFTC. Investor
servicing agent functions are provided by Putnam Investor Services, a
division of PFTC.
For the period ended February 28, 1999, fund expenses were reduced by
$1,177 under expense offset arrangements with PFTC. Investor servicing and
custodian fees reported in the Statement of operations exclude these
credits. The fund could have invested a portion of the assets utilized in
connection with the expense offset arrangements in an income producing
asset if it had not entered into such arrangements.
Each Trustee of the fund receives an annual Trustee fee, of which $100 has
been allocated to the fund, and an additional fee for each Trustee's
meeting attended. Trustees who are not interested persons of Putnam
Management and who serve on committees of the Trustees receive additional
fees for attendance at certain committee meetings.
The fund has adopted a Trustee Fee Deferral Plan (the "Deferral Plan")
which allows the Trustees to defer the receipt of all or a portion of
Trustees Fees payable on or after July 1, 1995. The deferred fees remain
in the fund and are invested in certain Putnam funds until distribution in
accordance with the Deferral Plan.
The fund has adopted an unfunded noncontributory defined benefit pension
plan (the "Pension Plan") covering all Trustees of the fund who have
served as Trustee for at least five years. Benefits under the Pension Plan
are equal to 50% of the Trustee's average total retainer and meeting fees
for the three years preceding retirement. Pension expense for the fund is
included in Compensation of Trustees in the Statement of operations.
Accrued pension liability is included in Payable for compensation of
Trustees in the Statement of assets and liabilities.
The fund has adopted a distribution plan (the "Plan") pursuant to Rule
12b-1 under the Investment Company Act of 1940. The purpose of the Plan is
to compensate Putnam Mutual Funds Corp., a wholly-owned subsidiary of
Putnam Investments, Inc., for services provided and expenses incurred by
it in distributing shares of the fund. The Plan provides for payment by
the fund to Putnam Mutual Funds Corp. at an annual rate of up to 0.35% of
the fund's average net assets. The fund is not currently making any
payments pursuant to the plan.
For the period ended February 28, 1999, Putnam Mutual Funds Corp., acting
as underwriter received no net commissions from the sale of shares. A
deferred sales charge of up to 1% is assessed on certain redemptions of
shares. For the period ended February 28, 1999, Putnam Mutual Funds Corp.,
acting as underwriter received no monies on redemptions.
Note 3
Purchases and sales
During the period ended February 28, 1999, purchases and sales of
investment securities other than short-term investments aggregated
$1,041,170 and $966,997 respectively. There were no purchases and sales of
U.S. government obligations. In determining the net gain or loss on
securities sold, the cost of securities has been determined on the
identified cost basis.
Note 4
Capital shares
At February 28, 1999, there was an unlimited number of shares of
beneficial interest authorized. Transactions in capital were as follows:
Six months ended
February 28, 1999
- -----------------------------------------------------------------------------
Shares Amount
- -----------------------------------------------------------------------------
Shares sold 4,215 $20,379
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 7,839 38,173
- -----------------------------------------------------------------------------
12,054 58,552
Shares
repurchased (2,236) (10,786)
- -----------------------------------------------------------------------------
Net increase 9,818 $47,766
- -----------------------------------------------------------------------------
Period ended
March 23, 1998
(commencement
of operations) to
August 31, 1998
- -----------------------------------------------------------------------------
Shares Amount
- -----------------------------------------------------------------------------
Shares sold 19,623 $149,023
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions -- --
- -----------------------------------------------------------------------------
19,623 149,023
Shares
repurchased (608) (3,045)
- -----------------------------------------------------------------------------
Net increase 19,015 $145,978
- -----------------------------------------------------------------------------
Note 5
Initial capitalization and offering of shares
The fund had an initial capital contribution of $2,000,000 and an issuance
of 235,294 shares to Putnam Mutual Funds Corp on March 23, 1998.
At February 28, 1999, Putnam Investments, Inc. owned 242,571 shares of the
fund (91.8% of shares outstanding), valued at $1,147,361.
Fund information
INVESTMENT MANAGER
Putnam Investment
Management, Inc.
One Post Office Square
Boston, MA 02109
MARKETING SERVICES
Putnam Mutual Funds Corp.
One Post Office Square
Boston, MA 02109
CUSTODIAN
Putnam Fiduciary Trust Company
LEGAL COUNSEL
Ropes & Gray
TRUSTEES
George Putnam, Chairman
William F. Pounds, Vice Chairman
John A. Hill, Vice Chairman
Jameson Adkins Baxter
Hans H. Estin
Ronald J. Jackson
Paul L. Joskow
Elizabeth T. Kennan
Lawrence J. Lasser
John H. Mullin III
Robert E. Patterson
Donald S. Perkins
George Putnam, III
A.J.C. Smith
W. Thomas Stephens
W. Nicholas Thorndike
OFFICERS
George Putnam
President
Charles E. Porter
Executive Vice President
Patricia C. Flaherty
Senior Vice President
John D. Hughes
Senior Vice President and Treasurer
Lawrence J. Lasser
Vice President
Gordon H. Silver
Vice President
Ian C. Ferguson
Vice President
Brett C. Browchuk
Vice President
John J. Morgan, Jr.
Vice President
Thomas R. Haslett
Vice President and Fund Manager
Stephen S. Oler
Vice President and Fund Manager
Richard A. Monaghan
Vice President
John R. Verani
Vice President
Beverly Marcus
Clerk and Assistant Treasurer
This report is for the information of shareholders of Putnam Latin America
Fund. It may also be used as sales literature when preceded or accompanied
by the current prospectus, which gives details of sales charges,
investment objectives, and operating policies of the fund, and the most
recent copy of Putnam's Quarterly Performance Summary. For more
information or to request a prospectus, call toll free: 1-800-225-1581.
You can also learn more at Putnam Investments' website:
http://www.putnaminv.com.
Shares of mutual funds are not deposits or obligations of, or guaranteed
or endorsed by, any financial institution; are not insured by the Federal
Deposit Insurance Corporation (FDIC), the Federal Reserve Board, or any
other agency; and involve risk, including the possible loss of the
principal amount invested.
51092 2IA 4/99
