Putnam
Latin America
Fund
SEMIANNUAL REPORT ON PORTFOLIO AND PERFORMANCE
2-29-00
[SCALE LOGO OMITTED]
The following report contains a list of your fund's portfolio holdings and
complete financial statements for the six months ended 2/29/00. Additional
details, including fund strategy, performance, and managers' outlook, will
be provided in the annual report, which will cover the 12 months ended
8/31/00.
<TABLE>
<CAPTION>
The fund's portfolio
February 29, 2000 (Unaudited)
COMMON STOCKS (99.5%) (a)
NUMBER OF SHARES VALUE
<S> <C> <C>
Argentina (3.8%)
- --------------------------------------------------------------------------------------------------------------------------
770 Alto Palermo S.A. <C> $ 6,046
918 Banco De Galicia y Buenos Aires S.A. de C.V. ADR Class B 19,049
862 El Sitio, Inc. (NON) 19,503
1,720 Telecom Argentina S.A. ADR 71,703
--------------
116,301
Brazil (39.4%)
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10,200 Aracruz Celulose S.A. ADR 21,301
4,100 Banco Bradesco S.A. ADR 28,956
3,250 Banco Bradesco S.A. 23,377
410 Banco Itau S.A. BRC 32,600
5,700 Centrais Geradoras do Sul do Brasil SA (NON) 6,387
2,914 Cia Cervejaria Brahma ADR 37,518
1,700 Companhia Brasileira de Distribuicao Grupo Pao de
Acucar ADR 57,375
2,500 Companhia De Transmissao De Energia (NON) 12,875
2,700 Companhia Paranaense de Energia-Copel ADR 25,144
3,400 Companhia Vale do Rio Doce ADR 89,675
645 Compania Siderurgica Nacional (NON) 19,748
111 CRT Celular (NON) 37,062
810 Eletropaulo Metropolitana S.A. 55,925
3,130 Embratel Participacoes S.A. ADR 75,120
10,500 Empresa Bras Aeronautica 47,538
2,200 Gerdau S.A. 61,256
2,270 Globo Cabo S.A. ADR 43,981
3,480 Petroleo Brasileiro S/A-Petrobras ADR 90,480
105 Petroleo Brasileiro-Petrobras 25,552
1,650 Sid Tubarao 25,586
1,250 Tele Celular Sul Participacoes S.A. 60,625
450 Tele Centro Sul Participacoes S.A. 32,456
1,100 Tele Norte Leste Participacoes S.A. ADR 28,050
800 Telemig Celular Participacoes S.A. ADR 58,900
1,250 Telesp Celular Participacoes S.A. ADR 67,344
3 Telesp Participacoes S.A. 119
2,700 Telesp-Telecomunicacoes de Sao Paulo S.A. 92,306
930 Uniao de Bancos Brasileiros S.A. GDR 27,086
4,290 Usiminas 23,307
--------------
1,207,649
Canada (0.6%)
- --------------------------------------------------------------------------------------------------------------------------
930 Global Light Telecom, Inc. (NON) 19,239
Chile (3.2%)
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600 Banco de A. Edwards ADR 11,025
900 Chilectra S.A. 144A ADR 15,300
600 Compania Cervecera Unidas ADR 15,450
1,400 Cristalerias de Chile ADR 29,400
1,000 Quinenco S.A. ADR 12,000
200 Sociedad Quimica y Minera de Chile S.A. ADR 5,888
17 Sociedad Quimica y Minera de Chile S.A. ADR, Class A 519
200 Vina Concha Y Toro S.A. ADR 7,550
--------------
97,132
Mexico (47.9%)
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6,200 Alfa S.A. de C.V. Class A 21,854
7,000 Alsea S.A. 5,309
12,750 Carso Global Telecom 159,341
2,317 Cemex SA de CV ADR (NON) 49,526
2,000 Coca-Cola Femsa S.A. ADR 38,375
9,900 Controladora Comercial Mexicana 9,517
2,204 Corporacion Interamericana de Entretenimiento S.A. (NON) 10,782
14,000 Corporacion Moctezuma, S.A. de C.V. 23,179
450 Desc S.A. de C.V. ADR 5,934
8,500 Fomento Economico Mexicano, S.A. de C.V. 37,861
135 Fomento Economico Mexicano, S.A. de C.V. ADR 5,999
12,200 Grupo Carso S.A. de C.V. 47,565
26,400 Grupo Dataflux S.A. 15,510
3,000 Grupo Elektra S.A. GDR 35,625
25,100 Grupo Financiero Banamex S.A. de C.V. 107,108
61,000 Grupo Financiero Bancomer S.A. de C.V. 30,103
8,500 Grupo Financiero Banorte S.A. de C.V. 9,261
4,300 Grupo Financiero Inbursa S.A. de C.V. 19,888
17,200 Grupo Mexico S.A. 85,430
22,700 Grupo Modelo S.A. de C.V. 51,525
16,850 Grupo Sanborns S.A. de C.V. (NON) 34,737
1,525 Grupo Televisa S.A. GDR (NON) 117,139
2,000 Nuevo Grupo Iusacell S.A. de C.V. ADR (NON) 42,500
5,000 Organizacion Soriana S.A. 20,535
5,280 Telefonos de Mexico S.A. ADR Class L 347,160
1,000 Tubos de Acero de Mexico S.A. ADR 14,125
8,050 TV Azteca, S.A. de C.V. 112,197
2,700 Vitro S.A. ADR 11,475
--------------
1,469,560
Peru (1.0%)
- --------------------------------------------------------------------------------------------------------------------------
1,150 Compania de Minas Buenaventura S.A. ADR 20,053
800 Credicorp Ltd. 9,800
--------------
29,853
Spain (1.1%)
- --------------------------------------------------------------------------------------------------------------------------
270 Terra Networks S.A. ADR (NON) 34,999
United States (2.0%)
- --------------------------------------------------------------------------------------------------------------------------
290 Firstcom Corp. (NON) 10,712
200 IMPSAT Fiber Newworks, Inc. (NON) 7,338
1,000 Prodigy Communications Corp. (NON) 20,063
500 StarMedia Network, Inc. (NON) 23,500
--------------
61,613
Venezuela (0.5%)
- --------------------------------------------------------------------------------------------------------------------------
500 Compania Anonima Nacional Telefonos de Venezuela ADR 16,656
--------------
Total Common Stocks (cost $2,122,704) $ 3,053,002
WARRANTS (--%) (cost $252) (a) (NON) EXPIRATION
NUMBER OF WARRANTS DATE VALUE
- --------------------------------------------------------------------------------------------------------------------------
144 Cemex SA ADR 12/13/02 $ 410
SHORT-TERM INVESTMENTS (0.5%) (cost $16,000) (a)
PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------------------------------------------------------------
$ 16,000 Interest in $702,686,000 joint repurchase agreement dated
February 29, 2000 with Morgan (J.P.) & Co. Inc. due
March 1, 2000 with respect to various U.S. Treasury
obligations -- maturity value of $16,003 for an
effective yield of 5.76% $ 16,000
- --------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $2,138,956) (b) $ 3,069,412
- --------------------------------------------------------------------------------------------------------------------------
(a) Percentages indicated are based on net assets of $3,067,302.
(b) The aggregate identified cost on a tax basis is $2,179,697, resulting in gross unrealized appreciation and
depreciation of $953,604 and $63,889, respectively, or net unrealized appreciation of $889,715.
(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 Depositary Receipts, or Global Depositary
Receipts, respectively representing ownership of foreign securities on deposit with a domestic custodian bank.
The fund had the following industry group concentrations greater than 10% at February 29, 2000 (as a percentage of
net assets):
Communication services 31.4%
Consumer staples 12.8
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of assets and liabilities
February 29, 2000 (Unaudited)
<S> <C>
Assets
- -----------------------------------------------------------------------------------------------
Investments in securities, at value
(identified cost $2,138,956) (Note 1) $3,069,412
- -----------------------------------------------------------------------------------------------
Cash 797
- -----------------------------------------------------------------------------------------------
Dividends and other receivables 11,759
- -----------------------------------------------------------------------------------------------
Receivable for securities sold 1,957
- -----------------------------------------------------------------------------------------------
Receivable from Manager (Note 2) 3,767
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Total assets 3,087,692
Liabilities
- -----------------------------------------------------------------------------------------------
Payable for investor servicing and custodian fees (Note 2) 520
- -----------------------------------------------------------------------------------------------
Payable for compensation of Trustees (Note 2) 679
- -----------------------------------------------------------------------------------------------
Payable for administrative services (Note 2) 7
- -----------------------------------------------------------------------------------------------
Other accrued expenses 19,184
- -----------------------------------------------------------------------------------------------
Total liabilities 20,390
- -----------------------------------------------------------------------------------------------
Net assets $3,067,302
Represented by
- -----------------------------------------------------------------------------------------------
Paid-in capital (Notes 1, 4, and 5) $2,703,891
- -----------------------------------------------------------------------------------------------
Distributions in excess of net investment income (Note 1) (995)
- -----------------------------------------------------------------------------------------------
Accumulated net realized loss on investments and
foreign currency transactions (Note 1) (567,007)
- -----------------------------------------------------------------------------------------------
Net unrealized appreciation of investments and assets and
liabilities in foreign currencies 931,413
- -----------------------------------------------------------------------------------------------
Total -- Representing net assets applicable to
capital shares outstanding $3,067,302
Computation of net asset value and offering price
- -----------------------------------------------------------------------------------------------
Net asset value and redemption price per share
($3,067,302 divided by 330,814 shares) $9.27
- -----------------------------------------------------------------------------------------------
Offering price per share (100/94.25 of $9.27)* $9.84
- -----------------------------------------------------------------------------------------------
* 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 29, 2000 (Unaudited)
<S> <C>
Investment income:
- -----------------------------------------------------------------------------------------------
Dividends (net of foreign tax of $191) $ 20,776
- -----------------------------------------------------------------------------------------------
Interest 631
- -----------------------------------------------------------------------------------------------
Total investment income 21,407
Expenses:
- -----------------------------------------------------------------------------------------------
Compensation of Manager (Note 2) 11,100
- -----------------------------------------------------------------------------------------------
Investor servicing and custodian fees (Note 2) 1,719
- -----------------------------------------------------------------------------------------------
Compensation of Trustees (Note 2) 1,176
- -----------------------------------------------------------------------------------------------
Administrative services (Note 2) 20
- -----------------------------------------------------------------------------------------------
Reports to shareholders 2,216
- -----------------------------------------------------------------------------------------------
Registration fees 99
- -----------------------------------------------------------------------------------------------
Auditing 18,401
- -----------------------------------------------------------------------------------------------
Legal 2,139
- -----------------------------------------------------------------------------------------------
Postage 27
- -----------------------------------------------------------------------------------------------
Other 16
- -----------------------------------------------------------------------------------------------
Fees waived and reimbursed by Manager (Note 2) (18,548)
- -----------------------------------------------------------------------------------------------
Total expenses 18,365
- -----------------------------------------------------------------------------------------------
Expense reduction (Note 2) (403)
- -----------------------------------------------------------------------------------------------
Net expenses 17,962
- -----------------------------------------------------------------------------------------------
Net investment income 3,445
- -----------------------------------------------------------------------------------------------
Net realized gain on investments (Notes 1 and 3) 90,367
- -----------------------------------------------------------------------------------------------
Net realized loss on foreign currency transactions (Note 1) (1,641)
- -----------------------------------------------------------------------------------------------
Net unrealized appreciation of assets and liabilities in
foreign currencies during the period (Note 1) 2,289
- -----------------------------------------------------------------------------------------------
Net unrealized appreciation of investments during the period 877,093
- -----------------------------------------------------------------------------------------------
Net gain on investments 968,108
- -----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $971,553
- -----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of changes in net assets
Six months ended Year ended
February 29 August 31
2000* 1999
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase in net assets
- ---------------------------------------------------------------------------------------------------------------
Operations:
- ---------------------------------------------------------------------------------------------------------------
Net investment income $ 3,445 $ 24,029
- ---------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments and
foreign currency transactions 88,726 (555,294)
- ---------------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments
and assets and liabilities in foreign currencies 879,382 979,870
- ---------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 971,553 448,605
- ---------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
- ---------------------------------------------------------------------------------------------------------------
From net investment income (5,815) (38,173)
- ---------------------------------------------------------------------------------------------------------------
Increase from capital share transactions (Note 4) 348,287 209,626
- ---------------------------------------------------------------------------------------------------------------
Total increase in net assets 1,314,025 620,058
Net assets
- ---------------------------------------------------------------------------------------------------------------
Beginning of period (Note 5) 1,753,277 1,133,219
- ---------------------------------------------------------------------------------------------------------------
End of period (including distributions in excess
of net investment income and undistributed
net investment income of $995 and $1,375, respectively) $3,067,302 $1,753,277
- ---------------------------------------------------------------------------------------------------------------
* 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 29 Year ended March 23, 1998+
operating performance (Unaudited) August 31 to August 31
- ---------------------------------------------------------------------------------------------------------------------------------
2000 1999 1998
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value,
beginning of period $5.98 $4.46 $8.50
- ---------------------------------------------------------------------------------------------------------------------------------
Investment operations
- ---------------------------------------------------------------------------------------------------------------------------------
Net investment income (a)(d) .01 .09 .06
- ---------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 3.30 1.58 (4.10)
- ---------------------------------------------------------------------------------------------------------------------------------
Total from
investment operations 3.31 1.67 (4.04)
- ---------------------------------------------------------------------------------------------------------------------------------
Less distributions:
- ---------------------------------------------------------------------------------------------------------------------------------
From net
investment income (.02) (.15) --
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $9.27 $5.98 $4.46
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
- ---------------------------------------------------------------------------------------------------------------------------------
Total return at
net asset value (%)(b) 55.39* 38.27 (47.53)*
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $3,067 $1,753 $1,133
- ---------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(c)(d) .82* 1.65 .73*
- ---------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (%)(d) .15* 1.53 .87*
- ---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 63.89* 131.26 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 29, 2000, August 31, 1999 and August 31, 1998 reflect a reduction of $0.06, $0.12 and $0.08 per share,
respectively (Note 1).
</TABLE>
Notes to financial statements
February 29, 2000 (Unaudited)
Note 1
Significant accounting policies
Putnam Latin America Fund (the "fund") is a series of Putnam Funds 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 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
of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period.
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 sales price on its principal exchange, or if no sales are
reported -- as in 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. Other investments, including restricted
securities, are stated at fair value following procedures approved by the
Trustees.
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). Gains or losses on securities sold are determined on
the identified cost basis.
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 realized 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. Investments in foreign securities involve
certain risks, including those related to economic instability,
unfavorable political developments, and currency fluctuations, not present
with domestic investments.
F) 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 29, 2000, the fund had no borrowings against the line of
credit.
G) Federal taxes It is the policy of the fund to distribute all of its
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.
At August 31, 1999, the fund had a capital loss carryover of approximately
$363,000 available to offset future net capital gain, if any, which will
expire on August 31, 2007.
H) 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.
I) 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.
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 $5 billion, 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 August 31, 2000, 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 six months ended February 29, 2000, fund expenses were reduced by
$403 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 Trustees
meeting attended. 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
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 a 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 six months ended February 29, 2000, 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 29, 2000, Putnam Mutual Funds Corp.,
acting as underwriter received no monies on redemptions.
Note 3
Purchases and sales of securities
During the six months ended February 29, 2000, cost of purchases and
proceeds from sales of investment securities other than short-term
investments aggregated $1,473,455 and $1,130,234, respectively. There were
no purchases and sales of U.S. government obligations.
Note 4
Capital shares
At February 29, 2000, there was an unlimited number of shares of
beneficial interest authorized. Transactions in capital shares were as
follows:
Six months ended February 29, 2000
- -----------------------------------------------------------------------------
Shares Amount
- -----------------------------------------------------------------------------
Shares sold 51,164 $457,515
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 699 5,770
- -----------------------------------------------------------------------------
51,863 463,285
Shares
repurchased (14,331) (114,998)
- -----------------------------------------------------------------------------
Net increase 37,532 $348,287
- -----------------------------------------------------------------------------
Year ended August 31, 1999
- -----------------------------------------------------------------------------
Shares Amount
- -----------------------------------------------------------------------------
Shares sold 62,389 $362,692
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 7,838 38,017
- -----------------------------------------------------------------------------
70,227 400,709
Shares
repurchased (31,254) (191,083)
- -----------------------------------------------------------------------------
Net increase 38,973 $209,626
- -----------------------------------------------------------------------------
Fund information
WEB SITE
www.putnaminv.com
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
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
Justin Scott
Vice President
Thomas Haslett
Vice President and Fund Manager
Stephen Oler
Vice President and Fund Manager
Claudio Brocado
Vice President and Fund Manager
Richard A. Monaghan
Vice President
Richard G. Leibovitch
Vice President
John R. Verani
Vice President
This report is for the information of shareholders of Putnam Latin
American 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' Web site: 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.
21A 59724 4/00
