(LOGO)
Putnam
Energy-
Resources
Trust
Semiannual
Report
February 28, 1994
(COVER ARTWORK)
For investors seeking
capital appreciation
through investments
in the energy and
natural resources
industries
A member
of the Putnam
Family of Funds
Contents
2 How your fund performed
3 From the Chairman
4 Report from Putnam Management
Semiannual Report
6 Portfolio of investments owned
8 Financial statements
15 Fund performance supplement
<PAGE>
How your
fund performed
For periods ended February 28, 1994
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------
Total return*
<S> <C> <C> <C> <C> <C>
Lipper
S&P Natural Consumer
Fund 500(r) Resources Price
Class A NAV POP Index Average Index
- -----------------------------------------------------------------------------
6 months -12.00% -17.05% 2.12% -4.30% 1.31%
1 year 6.86 0.74 8.28 16.66 2.51
5 years 55.37 46.46 89.52 48.40 20.65
annualized 9.21 7.93 13.64 7.99 3.83
10 years 120.32 107.70 320.47 108.83 43.27
annualized 8.22 7.58 15.44 7.16 3.66
- -----------------------------------------------------------------------------
Class A Class B
- -----------------------------------------------------------------------------
Share data NAV POP NAV
- -----------------------------------------------------------------------------
August 31, 1993--Class A $ 20.51 $ 21.76 --
February 1, 1994 (inception
of class B shares) -- -- $14.78
February 28, 1994--Class A $ 14.35 $ 15.23 $14.34
- -----------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------------------------
Distributions
Capital gains
Class A Investment Short- Long-
6 months ended Number income term term Total
- ----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
February 28, 1994 1 $0.070 $1.867 $1.659 $3.596
- ----------------------------------------------------------------
</TABLE>
Total return at end of most recent calendar quarter
Periods ended March 31, 1994
<TABLE>
<CAPTION>
- ----------------------------------------------------
Cumulative Annualized
<S> <C> <C> <C> <C>
Class A NAV POP NAV POP
- ----------------------------------------------------
1 year -6.40% -11.80% -- --
5 years 38.02 30.11 6.66% 5.41%
10 years 95.69 84.40 6.94 6.31
- ----------------------------------------------------
</TABLE>
* Performance data represent past results. Investment return and principal
value will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Effective February 1, 1994,
the fund began offering class B shares. Performance of each share class
will differ.
Terms you need to know
Total return is the change in value of an investment from the beginning to
the end of a period, assuming the reinvestment of all distributions. It may
be shown at net asset value or at public offering price.
Net asset value (NAV) is the value of all your fund's assets, minus any
liabilities, divided by the number of outstanding shares, not reflecting any
sales charge.
Public offering price (POP) is the price of a mutual fund share plus the
maximum sales charge of 5.75% levied at the time of purchase.
Please see the fund performance supplement on page 15 for additional
information about performance comparisions.
<PAGE>
From the
Chairman
(George Putnam photo)
George Putnam
Chairman of the Trustees
(C) Karsh, Ottawa
Dear Shareholder:
The first half of the 1994 fiscal year was a challenging time for Putnam
Energy-Resources Trust. An oversupply of oil on the worldwide market and the
failure of OPEC to cut production levels caused oil prices to decline sharply
late in the period. As a result, although your fund's longer-term performance
remains attractive, the semiannual period just ended is understandably
disappointing. Before the downturn in oil prices, however, many of the
holdings in your fund had appreciated in value, and this resulted in a per
share capital gain of more than $3.00 paid in December 1993 -- the largest
capital gain in the fund's history.
As your fund begins the second half of fiscal 1994, it is with pleasure that
I welcome Jeanne Mockard as portfolio manager. Jeanne joined Putnam in 1985.
In 1993, she moved to Putnam's Basic Value Equities Group, where she now
manages the Putnam Dividend Income Fund and is responsible for trading
preferred stocks for various Putnam portfolios.
The following report discusses how market conditions affected your fund
during the past six months and outlines Jeanne's investment strategy for the
months ahead.
Respectfully yours,
(George Putnam signature)
George Putnam
April 20, 1994
<PAGE>
Report from
Putnam Management
Top 10 Holdings
Chevron Corp.
Imperial Oil Ltd.
Mobil Corp.
Tenneco Inc.
Sonat, Inc.
Illinois Central Corp.
BJ Services Co.
Euro Nevada Mining Corp.
Champion International Corp.
Westcoast Energy, Inc.
Reflects 31.7% of the portfolio as of 2/28/94. Future holdings will vary.
During the semiannual period, Putnam Energy-Resources Trust was managed in an
environment of low interest rates, low inflation, and a continuing expanding
economy. Against this backdrop, two important factors contributed to dampen
the performance of your fund.
First: Throughout the period, about 90% of your fund's assets were invested
in energy stocks and the remainder in diversified holdings and cash. For most
of the period, we maintained an investment strategy begun more than a year
ago, when we broadened the portfolio to include international energy stocks.
The fund was also heavily weighted in oil field service companies, and
exploration and production firms.
Late in the period, oil stocks were dealt a severe blow -- oil prices
declined sharply on news that OPEC refused to reduce the level of oil
production. Because of OPEC's decision, oil inventories grew, leading to an
oversupply of oil on the market in relation to demand.
Second: During much of this period, most other energy funds were heavily
invested in gold-related stocks, some, with as much as 40% of their assets.
Because we had placed a more aggressive bet on our energy-related
investments, we positioned only about 4% of your fund in gold-related stocks,
which we considered extremely volatile. In hindsight, this positioning cost
the fund the opportunity to participate in the recent rally in gold stocks.
The energy sector outlook As worldwide economies begin to show improvement in
the coming months, demand for oil will increase. This should benefit some of
the larger integrated oil companies, such as Royal Dutch Shell, British
Petroleum, Chevron, Exxon, and Texaco. These companies have very large market
shares outside the U.S. and their earnings have already started to show
improvement. Furthermore, they are all well positioned to benefit from
restructuring, cost-cutting initiatives, and an improving global economy. We
believe that crude oil prices will remain steady for several months. Because
we do not expect OPEC to reduce production in the near-term, oil inventories
should remain relatively high at least through the second and third quarters
of 1994.
In Putnam Management's opinion, the strengthening U.S. economy is likely to
mean greater demand for natural gas. In addition, the unusually cold winter
in the Northeast -- the country's key home heating market -- has lowered the
supply of natural gas to record levels. Over the next several months, we
expect the natural gas production season will be very strong, as natural gas
drillers
<PAGE>
replenish the storage facilities for the next home heating season. We believe
that natural gas prices will remain stable or increase slightly over the next
several months.
Finding value in natural resources As we enter the second half of this fiscal
year, we will be taking greater advantage of the fund's ability to diversify
into natural resources stocks other than energy-related stocks. This
positioning will protect the fund from the volatility of energy stocks to
some degree.
During the second half of the last fiscal year, we took profits on
investments in some Latin American and European stocks that we believed had
reached full valuation levels. We have now reinvested the proceeds from the
sale of these securities into new investments within the natural resources
sector.
Heavy industrial companies--those in the paper, steel, chemical, and
transportation industries--considered part of the natural resources sector
are well positioned to benefit from a strengthening
economy. Over the past several years, many of these companies have reduced
costs, eliminated unprofitable divisions, and increased productivity. As the
economy expands, we expect demand for products in these industries to rise.
We believe that the combination of lower production costs and stepped up
demand will significantly increase profit margins. This scenario, if
realized, will create some very attractive investment opportunities for your
fund.
(BAR CHART)
Top industry sectors
(based on percentage of net assets as of 2/28/94)
Oil & gas 46.6%
Oil services 17.4%
Gas pipelines 9.4%
Railroads 5.3%
Chemicals 4.4%
The views expressed here are exclusively those of Putnam Management. They are
not meant as investment advice. Although the described holdings were viewed
favorably as of February 28, 1994, there is no guarantee the fund will
continue to hold these securities in the future.
<PAGE>
Portfolio of
investments owned
February 28, 1994 (Unaudited)
Common Stocks (99.8%)(a)
<TABLE>
<CAPTION>
Number of Shares Value
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Oil and Gas (46.6%)
25,000 Amerada Hess Corp. $ 1,159,375
20,000 Amoco Corp. 1,045,000
95,000 Archer Resources Limited (b) 1,247,502
95,000 Basin Exploration, Inc. (b) 1,140,000
62,000 Chevron Corp. 5,378,500
100,000 Chieftain International, Inc. (b) 1,462,500
204,500 Coda Energy, Inc. (b) 1,022,500
100,000 Diamond Shamrock R & M 2,900,000
15,000 Exxon Corp. 973,125
20,000 H S Resources (b) 485,000
338,700 Hillcrest Resources Limited (b) 1,315,511
125,000 Imperial Oil Ltd. 4,328,125
40,000 Kerr-McGee Corp. 1,795,000
58,000 Lasmo PLC ADR (c) 348,000
75,000 Louisiana Land & Exploration Co. 2,793,750
55,000 Mobil Corp. 4,324,375
75,000 Norsk Hydro A.S. ADR (c) 2,681,250
30,000 Pennzoil Co. 1,605,000
50,000 Phillips Petroleum Co. 1,356,250
50,000 Santa Fe Southern Pacific Corp. 1,137,500
58,200 Snyder Oil Corp. 1,069,425
40,300 Societe National Elf Aquitaine 1,440,725
ADR (c)
24,100 Sonat Offshore Drilling, Inc. 418,738
74,700 Stone Energy Corp. (b) 765,675
125,000 Taliman Energy, Inc. 2,670,250
100,000 Tarragon Oil & Gas Ltd. (b) 1,146,700
25,500 USX-Marathon Group 439,875
300,000 Ulster Petroleum Ltd. (b) 876,660
100,000 Ultramar Corp. 2,975,000
135,000 United Meridian Corp. (b) 2,092,500
166,200 Wascana Energy, Inc. (b) 1,075,862
120,000 Williams Cos., Inc. 2,955,000
- ------------------------------------------------------------------------------------------------------------------------------
56,424,673
- ------------------------------------------------------------------------------------------------------------------------------
Oil Services (17.4%)
175,000 BJ Services Co. 3,368,750
90,000 Baker Hughes Inc. 1,710,000
65,000 Halliburton Co. 2,039,375
100,000 McDermott International, Inc. 2,312,500
50,000 Schlumberger Ltd. (Netherlands) 2,843,750
55,000 Seacor Holdings, Inc. (b) $ 1,278,750
125,000 Sonat, Inc. 3,796,875
180,000 Weatherford International Inc. 1,890,000
130,000 Western Co. of North America (b) 1,820,000
- ------------------------------------------------------------------------------------------------------------------------------
21,060,000
- ------------------------------------------------------------------------------------------------------------------------------
Gas Pipelines (9.4%)
60,000 El Paso Natural Gas Co. 2,317,500
71,000 Seagull Energy Corp. 1,766,125
75,000 Tenneco Inc. 4,181,250
175,000 Westcoast Energy, Inc. 3,150,000
- ------------------------------------------------------------------------------------------------------------------------------
11,414,875
- ------------------------------------------------------------------------------------------------------------------------------
Railroads (5.3%)
45,000 Burlington Northern, Inc. 2,829,375
100,000 Illinois Central Corp. 3,575,000
- ------------------------------------------------------------------------------------------------------------------------------
6,404,375
- ------------------------------------------------------------------------------------------------------------------------------
Chemicals (4.4%)
30,000 Monsanto Co. 2,298,750
259,300 Morgan Hydrocarbons, Inc. (b) 1,079,050
100,000 Southern Petrochemical Ltd. 1,900,000
- ------------------------------------------------------------------------------------------------------------------------------
5,277,800
- ------------------------------------------------------------------------------------------------------------------------------
Electric Utilities (3.3%)
45,000 Entergy Corp. 1,496,250
65,000 Texas Utilities Co. 2,510,625
- ------------------------------------------------------------------------------------------------------------------------------
4,006,875
- ------------------------------------------------------------------------------------------------------------------------------
Metals and Mining (3.2%)
100,000 Euro Nevada Mining Corp. 3,181,180
30,000 Pittston Minerals Group 720,000
- ------------------------------------------------------------------------------------------------------------------------------
3,901,180
- ------------------------------------------------------------------------------------------------------------------------------
Paper (2.6%)
100,000 Champion International Corp. 3,150,000
- ------------------------------------------------------------------------------------------------------------------------------
Construction (2.5%)
110,500 Empresas ICA Sociedad
Contoladora ADS (Mexico) (c) 3,052,563
- ------------------------------------------------------------------------------------------------------------------------------
Precious Metals (2.5%)
125,000 Placer Dome Inc. $ 3,015,625
- ------------------------------------------------------------------------------------------------------------------------------
Machinery (1.4%)
125,000 Indresco (b) 1,718,750
- ------------------------------------------------------------------------------------------------------------------------------
Steel (1.2%)
125,000 Shiloh Industries, Inc. (b) 1,500,000
- ------------------------------------------------------------------------------------------------------------------------------
Total Investments
(cost $121,704,693) (d) $120,926,716
==============================================================================================================================
</TABLE>
Notes
- ------------------------------------------------------------------------------
(a) Percentages indicated are based on total net assets of $121,168,117,
which correspond to a net asset value per class A share of $14.35 and Class B
share of $14.34.
(b) Non-income-producing security.
(c) Securities whose value is determined or significantly influenced by
trading on exchanges not in the United States or Canada. ADR or ADS after the
name of a foreign holding stands for American Depository Receipt or American
Depository Shares, respectively, representing foreign securities owned on
deposit with a domestic custodian bank.
(d) The aggregate identified cost on a tax basis is $122,042,657, resulting
in gross unrealized appreciation and depreciation of $6,019,635 and
$7,135,576, respectively, or net unrealized depreciation of $1,115,941.
The accompanying notes are an integral part of these financial statements.
<PAGE>
Statement of
assets and liabilities
February 28, 1994 (Unaudited)
<TABLE>
<S> <S> <C> <C>
-----------------------------------------------------------------------------------------------------------
Assets Investments in securities, at value (identified cost $121,704,693) (Note 1) $120,926,716
Cash 1,700,472
Dividends and other receivables 493,292
Receivable for shares of the Fund sold 965,444
Receivable for securities sold 875,500
-----------------------------------------------------------------------------------------------------------
Total assets 124,961,424
Liabilities Payable for shares of the Fund repurchased $ 289,096
Payable for securities purchased 3,174,072
Payable for compensation of Manager (Note 2) 206,832
Payable for investor servicing and custodian fees (Note 2) 43,247
Payable for compensation of Trustees (Note 2) 299
Payable for administrative services (Note 2) 3,384
Payable for distribution fees (Note 2) 50,474
Other accrued expenses 25,903
-----------------------------------------------------------------------------------------------------------
Total liabilities 3,793,307
-----------------------------------------------------------------------------------------------------------
Net assets $121,168,117
===========================================================================================================
Represented by Paid-in capital (Note 4) $123,720,852
Undistributed net investment income 39,194
Accumulated net realized loss on investment transactions (1,813,952)
Net unrealized depreciation of investments (777,977)
-----------------------------------------------------------------------------------------------------------
Total--Representing net assets applicable to capital shares outstanding $121,168,117
===========================================================================================================
Computation of Net asset value and redemption price of class A shares ($119,744,382
net asset value divided by 8,345,395 shares) $14.35
offering price Offering price per share (100/94.25 of $14.35)* $15.23
Net asset value and redemption price of class B shares ($1,423,735
divided by 99,283 shares)** $14.34
===========================================================================================================
<FN>
* 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.
** Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
Statement of
operations
Six months ended February 28, 1994 (Unaudited)
<TABLE>
<S> <C> <C>
-------------------------------------------------------------------------------------------
Investment income:
Dividends (net of foreign tax of $44,896) $ 990,339
-------------------------------------------------------------------------------------------
Total investment income 990,339
Expenses:
Compensation of Manager (Note 2) $429,042
Investor servicing and custodian fees (Note 2) 120,108
Compensation of Trustees (Note 2) 7,408
Reports to shareholders 12,936
Auditing 9,492
Legal 7,171
Postage 15,624
Administrative services (Note 2) 5,560
Distribution fees--class A (Note 2) 152,427
Distribution fees--class B (Note 2) 546
Registration fees 16
Other 6,586
-------------------------------------------------------------------------------------------
Total expenses 766,916
-------------------------------------------------------------------------------------------
Net investment income 223,423
-------------------------------------------------------------------------------------------
Net realized gain on investments (Notes 1 and 3) 1,484,519
Net unrealized depreciation of investments during the
period (17,732,796)
-------------------------------------------------------------------------------------------
Net loss on investments (16,248,277)
-------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $(16,024,854)
===========================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
Statement of
changes in net assets
<TABLE>
<CAPTION>
Six months
ended Year ended
February 28 August 31
--------------- ---------------
1994* 1993
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Increase (decrease) Operations:
in net assets Net investment income $ 223,423 $ 1,451,512
Net realized gain on investments 1,484,519 20,064,518
Net realized loss on options -- (560,708)
Net unrealized appreciation (depreciation) of investments (17,732,796) 2,837,599
--------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations (16,024,854) 23,792,921
Distributions to shareholders from:
Net investment income (452,428) (1,156,589)
Net realized gain on investments (22,788,379) (3,199,407)
Increase from capital share transactions (Note 4) 26,848,796 4,443,448
--------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets (12,416,865) 23,880,373
Net assets Beginning of period 133,584,982 109,704,609
--------------------------------------------------------------------------------------------------------
End of period (including undistributed net investment
income of $39,194 and $83,877, respectively) $121,168,117 $133,584,982
========================================================================================================
* Unaudited.
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
Financial
highlights*
(For a share
outstanding
throughout
the period)
<TABLE>
<CAPTION>
February 1,
1994 Six Nine
(commence- months months Year
ment of ended ended ended
operations) to February August November
February 28 28 Year ended August 31 31 30
--------------- ------- ------------------------------------------------------------------- ------ ------
1994** 1994** 1993 1992 1991 1990 1989 1988 1987 1986 1985 1984
--------------- --------------------------------------------------------------------------------------------------
Class B Class A
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
================================================================================================================================
Net Asset
Value,
Beginning
of Period $14.78 $20.51 $17.57 $17.74 $17.94 $17.06 $13.25 $15.55 $11.14 $11.98 $10.61 $11.13
- --------------------------------------------------------------------------------------------------------------------------------
Investment
operations
Net
Investment
Income .02 .10 .23 .35 .46 .49 .45 .37(a) .44(a) .18 .17(a) .38(a)
Net Realized
and
Unrealized
Gain (Loss)
on
Investments (.46) (2.66) 3.41 .44 .59 1.13 3.70 (2.22) 4.44 (.75) 1.55 (.66)
- --------------------------------------------------------------------------------------------------------------------------------
Total from
investment
operations (.44) (2.56) 3.64 .79 1.05 1.62 4.15 (1.85) 4.88 (.57) 1.72 (.28)
- --------------------------------------------------------------------------------------------------------------------------------
Less
Distributions
from:
Net
Investment
Income -- (.07) (.18) (.39) (.52) (.54) (.34) (.41) (.42) (.27) (.35) (.24)
Net Realized
Gain on
Investments -- (3.53) (.52) (.57) (.73) (.20) -- (.04) (.05) -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Total
Distributions -- (3.60) (.70) (.96) (1.25) (.74) (.34) (.45) (.47) (.27) (.35) (.24)
- --------------------------------------------------------------------------------------------------------------------------------
Net Asset
Value, End
of Period $14.34 $14.35 $20.51 $17.57 $17.74 $17.94 $17.06 $13.25 $15.55 $11.14 $11.98 $10.61
- --------------------------------------------------------------------------------------------------------------------------------
Total
Investment
Return at
Net Asset
Value (%)
(b) (37.25)(c) (24.00)(c) 21.79 5.12 6.62 9.72 31.64 (11.67) 44.87 (4.81) 22.27(c) (2.64)
- --------------------------------------------------------------------------------------------------------------------------------
Net Assets,
End of
Period (in
thousands) $1,424 $119,744 $133,585 $109,705 $125,607 $137,669 $116,042 $107,932 $146,755 $34,860 $33,995 $36,131
- --------------------------------------------------------------------------------------------------------------------------------
Ratio of
Expenses to
Average Net
Assets (%) 2.22(c) 1.20(c) 1.18 1.61 1.53 1.50 1.40 1.47(a) 1.42(a) 1.77 1.67(a)(c) 1.48(a)
Ratio of Net
Investment
Income to
Average Net
Assets (%) 2.88(c) .20(c) 1.25 2.13 2.65 2.82 2.93 2.73(a) 3.46(a) 1.57 1.71(a)(c) 3.07(a)
Portfolio
Turnover
(%) 123.86(d) 123.86(d) 170.88 28.33 38.03 48.19 60.29 86.04 179.58 216.22 129.59(d) 94.64
================================================================================================================================
<FN>
* Financial highlights for periods ended through August 31, 1992 have been reclassified and data has been
presented to conform with requirements issued by the SEC in April, 1993.
** Unaudited.
(a)Reflects expense limitations applicable during these periods. As a result of such limitations, expenses of
the Fund for the years ended August 31, 1988 and 1987, the period ended August 31, 1985 and the year ended
November 30, 1984 reflect per share reductions of $.01, $.03, $.03, and $.03, respectively.
(b)Total investment return assumes dividend reinvestment and does not reflect the effect of sales charges.
(c)Annualized.
(d)Not annualized.
</TABLE>
<PAGE>
Notes to
financial statements
February 28, 1994 (Unaudited)
- ------------------------------------------------------------------------------
Note 1 Significant accounting policies
The Fund is registered under the Investment Company Act of 1940, as amended,
as a diversified, open-end management investment company. The Fund seeks
capital appreciation by investing primarily in the common stocks of companies
in the energy and natural resources industries, but may also invest a portion
of its assets in other industries and in fixed-income securities.
The Fund offers both class A and class B shares. The Fund commenced its
public offering of class B shares on February 1, 1994. Class A shares are
sold with a maximum front-end sales charge, of 5.75%. Class B shares do not
pay a front-end sales charge, but pay a higher ongoing distribution fee than
class A shares, and may be subject to a contingent deferred sales charge, if
those shares are redeemed within six years of purchase. In addition, the
Trustees declare separate dividends on each class of shares. Expenses of the
Fund are borne pro-rata by the holders of both classes of shares, except that
each class bears expenses unique to that class (including the distribution
fees applicable to such class), and votes as a class only with respect to its
own distribution plan or other matters on which a class vote is required by
law or determined by the Trustees. Shares of each class would receive their
pro-rata share of the net assets of the Fund, if the Fund were liquidated.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles.
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, or, if no sales are reported -- as in the case of some
securities traded over-the-counter -- the last reported bid price, except
that certain U.S. government obligations are stated at the mean between the
last reported bid and asked prices. Market quotations are not considered to
be readily available for some convertible securities; such investments are
stated at fair value on the basis of valuations furnished by a pricing
service approved by the Trustees, which determines valuations for normal,
institutional-size trading units of such securities using methods based on
market transactions for comparable securities and various relationships
between securities which are generally recognized by institutional traders.
Short-term investments having remaining maturities of 60 days or less are
stated at amortized cost which approximates market, and other investments are
stated at fair 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 managed by Putnam Investment Management,
Inc., (Putnam Management) the Fund's Manager, a wholly-owned subsidiary of
Putnam Investments, Inc. and certain other accounts. 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
custodians, 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. The Fund's Manager 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). Interest income is recorded on the accrual basis and 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. Discount on zero-coupon bonds is accreted according to the
effective yield method.
E) Federal taxes It is the policy of the Fund to distribute all of its 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. Therefore, no provision has been made for federal taxes on income,
capital gains or unrealized appreciation of securities held and excise tax on
income and capital gains.
F) Distributions to shareholders Distributions to shareholders are recorded
by the Fund on the ex-dividend date.
<PAGE>
- ------------------------------------------------------------------------------
Note 2 Management fee, administrative services, and other transactions
Compensation of Putnam Investment Management, Inc., the Fund's Manager, a
wholly-owned subsidiary of Putnam Investments Inc., for management and
investment advisory services is paid quarterly based on the average net
assets of the Fund for the quarter. Such fee is based on the following annual
rates: 0.70% of the first $500 million of average net assets, 0.60% of the
next $500 million, 0.55% of the next $500 million and 0.50% of any amount
over $1.5 billion, subject to reduction in any year to the extent that
expenses (exclusive of distribution fees, brokerage, interest and taxes) of
the Fund exceed 2.5% of the first $30 million of average net assets, 2.0% of
the next $70 million and 1.5% of any amount over $100 million, and by the
amount of certain brokerage commissions and fees (less expenses) received by
affiliates of the Manager on the Fund's portfolio transactions.
The Fund also reimburses the Manager 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. For the six months
ended February 28, 1994, the Fund paid $5,560 for these services.
Trustees of the Fund receive an annual Trustee's fee of $1,240 and an
additional fee for each Trustees' meeting attended. Trustees who are not
interested persons of the Manager and who serve on committees of the Trustees
receive additional fees for attendance at certain committee meetings.
Custodial functions for the Fund's assets are being provided by Putnam
Fiduciary Trust Company (PFTC), a subsidiary of Putnam Investments, Inc.
Investor servicing agent functions are provided by Putnam Investor Services,
a division of PFTC. Fees paid for these investor servicing and custodial
functions for the six months ended February 28, 1994, amounted to $120,108.
Investor servicing and custodian fees reported in the Statement of operations
for the six months ended February 28, 1994, have been reduced by credits
allowed by PFTC.
The Fund has adopted a distribution plan with respect of class A shares (the
"class A Plan") pursuant to Rule 12b-1 under the Investment Company Act of
1940. The purpose of the class A 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 class A shares. The
Trustees have approved payment by the Fund to Putnam Mutual Funds Corp. at an
annual rate of 0.25% of the Fund's average net assets attributable to class A
shares. For the six months ended February 28, 1994, the Fund paid $152,427 in
distribution fees for the class A shares.
During the six months ended February 28, 1994, Putnam Mutual Funds Corp.,
acting as an underwriter, received net commissions of $72,107 from the sale
of class A shares of the Fund.
A deferred sales charge of up to 1.00% is assessed on certain redemptions of
class A shares purchased as part of an investment of $1 million or more. For
the six months ended February 28, 1994, Putnam Mutual Funds Corp., acting as
an underwriter, received $198 on such redemptions.
The Fund has adopted a distribution plan with respect to class B shares (the
"class B Plan") pursuant to Rule 12b-1 under the Investment Company Act of
1940. The purpose of class B Plan is to compensate Putnam Mutual Funds Corp.
at an annual rate of 1.00% of the Fund's average net assets attributable to
class B shares. For the six months ended February 28, 1994, the Fund paid
Putnam Mutual Funds Corp. distribution fees of $546 for class B shares.
Putnam Mutual Funds Corp. also receives the proceeds on the contingent
deferred sales charges on its class B share redemptions within six years of
purchase. The charge is based on declining rates, which begin at 5.00% of the
net asset value of the redeemed shares. For the six months ended February 28,
1994, Putnam Mutual Funds Corp., acting as an underwriter received no
contingent deferred sales charges from redemptions.
<PAGE>
- ------------------------------------------------------------------------------
Note 3 Purchases and sales of securities
During the six months ended February 28, 1994, purchases and sales of
investment securities other than U.S. government obligations and short-term
investments aggregated $152,048,749 and $149,821,890, respectively. There
were no purchases or sales of U.S. government obligations during the period.
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, 1994, there was an unlimited number of shares of beneficial
interest authorized, divided into two classes, class A and class B capital
shares. Transactions in capital shares were as follows:
<TABLE>
<CAPTION>
Six months ended February 28 Year ended August 31
-------------------------- ---------------------------
1994 1993
-------------------------- ---------------------------
Class A Shares Amount Shares Amount
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 2,892,676 $ 47,304,328 4,060,443 $ 73,323,992
Shares issued in connection with reinvestment
of distributions 1,450,461 20,233,929 231,880 3,776,894
- ----------------------------------------------------------------------------------------------------------
4,343,137 67,538,257 4,292,323 77,100,886
Shares repurchased (2,509,532) (42,140,856) (4,025,052) (72,657,438)
- ----------------------------------------------------------------------------------------------------------
Net increase 1,833,605 $ 25,397,401 267,271 $ 4,443,448
- ----------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
February 1, 1994
(commencement of
operations) to
February 28, 1994
--------------------
Class B Shares Amount
- --------------------------------------------
<S> <C> <C>
Shares sold 105,676 $1,544,275
Shares repurchased (6,393) (92,880)
- --------------------------------------------
Net increase 99,283 $1,451,395
- --------------------------------------------
</TABLE>
- ------------------------------------------------------------------------------
Note 5 Reclassification of Capital Accounts
Effective September 1, 1993, Putnam Energy-Resources Trust has adopted the
provisions of the AICPA Statement of Position (SOP) 93-2 "Determination,
Disclosure and Financial Statement Presentation of Income, Capital Gain and
Return of Capital Distributions, by Investment Companies." The purpose of
this SOP is to report the accumulated net investment income (loss) and
accumulated net realized gain (loss) accounts in such a manner as to
approximate amounts available for future distributions (or to offset future
realized capital gains) and to achieve uniformity in the presentation of
distributions by investment companies.
As a result of the SOP, the Fund has reclassified $184,322 to increase
undistributed net investment income, $218,619 to increase accumulated net
realized gain and $402,941 to decrease paid in capital.
These adjustments represent the cumulated amounts necessary to report these
balances through August 31, 1993, the close of the Fund's most recent fiscal
year end for financial reporting and tax purposes.
<PAGE>
- ------------------------------------------------------------------------------
Fund
performance
supplement
Putnam Energy-Resources Trust is a portfolio managed for long-term capital
appreciation through investments in the energy and natural resource
industries. Standard & Poor's 500 Index is an unmanaged list of large
capitalization common stocks that assumes reinvestment of all distributions.
Lipper Natural Resources Average is composed of funds which invest more than
65% of their equity holdings in common stocks issued by companies in the
energy and natural resources industries. The indexes do not take into account
brokerage commissions or other costs. The fund's portfolio contains
securities that do not match those in the indexes. The Consumer Price Index
is a commonly used measure of inflation; it does not represent an investment
return.
The fund performance supplement has been prepared by Putnam Management to
provide additional information about the fund and the indexes used for
performance comparisons. The information is not part of the portfolio of
investments owned or the financial statements.
<PAGE>
Putnam
Energy-
Resources
Trust
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
Investor servicing agent
Putnam Investor Services
Mailing address:
P.O. Box 41203
Providence, RI 02940-1203
1-800-225-1581
Custodian
Putnam Fiduciary
Trust Company
Legal counsel
Ropes & Gray
(DALBAR LOGO)
Putnam Investor Services
has received the DALBAR
award each year since the
award's 1990 inception.
In more than 10,000 tests
of 38 shareholder
service components,
Putnam outperformed
the industry standard
in every category.
OH-11529
<PAGE>
Officers
George Putnam
President
Charles E. Porter
Executive Vice President
Patricia C. Flaherty
Senior Vice President
Lawrence J. Lasser
Vice President
Gordon H. Silver
Vice President
Peter Carman
Vice President
Thomas V. Reilly
Vice President
Jeanne Mockard
Vice President
and Fund Manager
William N. Shiebler
Vice President
John R. Verani
Vice President
Paul O'Neil
Vice President
John D. Hughes
Vice President
and Treasurer
Beverly Marcus
Clerk and
Assistant Treasurer
Trustees
George Putnam, Chairman,
William F. Pounds, Vice Chairman,
Jameson Adkins Baxter, Hans H. Estin,
John A. Hill, Elizabeth T. Kennan, Lawrence J. Lasser, Robert E. Patterson,
Donald S. Perkins, George Putnam, III,
A.J.C. Smith, W. Nicholas Thorndike
This report is for the information of shareholders of Putnam Energy-Resources
Trust. 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.
PUTNAM INVESTMENTS
The Putnam Funds
One Post Office Square
Boston, Massachusetts 02109
Bulk Rate
U.S. Postage
Paid
Boston, MA
Permit No. 53749
<PAGE>
APPENDIX TO FORM N-30D FILINGS TO DESCRIBE DIFFERENCES BETWEEN PRINTED
AND EDGAR-FILED TEXTS:
(1) Bold and italic typefaces are displayed in normal type.
(2) Headers (e.g., the name of the fund) and footers (e.g., page
numbers and "The accompanying notes are an integral part of these
financial statements") are omitted.
(3) Certain tabular and columnar headings and symbols are displayed
differently in this filing.
(4) Bullet points and similar graphic signals are omitted.
(5) Page numbering is omitted.
(6) Registered trademark symbol has been replaced by (R).
