(logo)
Putnam
New York
Tax Exempt
Income Fund
Annual
Report
November 30, 1993
(artwork)
For investors seeking
high current income
free from federal,
New York State and
New York City income
taxes, consistent with
capital preservation
A member
of the Putnam
Family of Funds
Contents
2 How your fund performed
3 From the Chairman
4 Report from Putnam Management
Annual Report
6 Report of Independent Accountants
7 Portfolio of investments owned
17 Financial statements
27 Fund performance supplement
<PAGE>
How your
fund performed
For periods ended November 30, 1993
Total return* Fund Lehman Brothers
Class A Class B Municipal
NAV POP NAV CDSC Bond Index
1 year 12.02% 6.67% -- -- 11.09%
5 years 61.05 53.32 -- -- 61.13
annualized 10.00 8.92 -- -- 10.01
10 years 186.68 173.22 -- -- 182.73
annualized 11.11 10.57 -- -- 10.95
Life-of-class**
(class B shares) -- -- 9.25% 4.25% 9.96
Share data Class A Class B
NAV POP NAV
November 30, 1992 $8.98 $9.43
January 4, 1993
(inception of class B shares) -- -- $8.95
November 30, 1993 $9.38 $9.85 $9.37
Distributions+ Capital gains
12 months ended Investment Long- Short-
November 30, 1993 Number income term term Total
Class A 13 $0.526519 $0.026 $0.095 $0.647519
Class B 11 $0.399533 -- -- $0.399533
Current returns Taxable
at the end Class A equivalents++ Class B Taxable
of the period NAV POP NAV POP NAV equivalent
Current dividend
rate (a) 5.43% 5.17% 9.76% 9.29% 4.86% 8.73%
Current dividend
rate (b) -- -- 10.25 9.76 -- 9.18
Current 30-day
yield (a) 4.96 4.73 8.91 8.50 4.29 7.71
Current 30-day
yield (b) -- -- 9.37 8.93 -- 8.10
<PAGE>
Total return at end
of most recent calendar quarter Cumulative Annualized
Periods ended December 31, 1993 NAV POP NAV CDSC
1 year 13.25% 7.82% -- --
5 years 61.99 54.30 -- --
annualized 10.13 9.06 -- --
10 years 189.87 175.26 -- --
annualized 11.20 10.66 -- --
Life-of-class** (class B shares) -- -- 11.87% 6.87%
*Performance data represent past results. Investment return and
net asset value will fluctuate so an investor's shares, when
redeemed, may be worth more or less than their original cost.
**Effective January 4, 1993, the fund began offering class B
shares. Results for each share class will differ.
+Capital gains, if any, are taxable. ++Taxable equivalent rates
cited assume (a) the maximum combined state and federal tax rate
of 44.36% or (b) the maximum combined state, federal and city tax
rates of 47.05%. Results for investors subject to lower tax rates
would not be as advantageous, although many could still receive
attractive tax benefits from a fund investment. Consult your tax
advisor for more guidance.
<PAGE>
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 levied at the time of purchase.
Contingent deferred sales charge (CDSC) is a charge applied at
the time of the redemption of shares rather than the time of
purchase. It generally declines and eventually disappears over a
stated period.
Class A shares are the shares of your fund offered subject to an
initial sales charge. Your fund's POP includes the maximum 4.75%
sales charge.
Class B shares are the shares of your fund offered with no
initial sales charge. Within the first six years of purchase,
they are subject to a CDSC declining from 5% to 1%. After the
sixth year, the CDSC no longer applies.
Current dividend rate is calculated by annualizing the net
investment income paid to shareholders in the fund's most recent
distribution, then dividing by the NAV or POP on the last day of
the period.
Current 30-day yield, based on the fund's net investment income
earnings, is calculated in accordance with Securities and
Exchange Commission guidelines.
Taxable equivalent return is the rate at which a taxable
investment would have to generate income to equal the fund's
current dividend rate or yield.
Please see the fund performance supplement on page 27 for
additional information about performance comparisons.
<PAGE>
From the
Chairman
(photograph of George Putnam)
c. Karsh, Ottawa
George Putnam
Chairman
of the Trustees
Dear Shareholder:
For the 12 months ended November 30, 1993, Putnam New York Tax
Exempt Income Fund handed in impressive performance results. For
the period, your fund provided a total return of over 12% at net
asset value for class A shares, assuming reinvestment of all
distributions. These results outpaced those of the Lehman
Brothers Municipal Bond Index, which provided a return of just
over 11% for the same period. (For total return at public
offering price and other performance information, see the facing
page.)
Your fund's management team, headed by David J. Eurkus, can be
credited with the strong performance delivered by your fund
during the last 12 months. They manage the fund's portfolio to
provide as high a level of current income, free from federal and
New York City and State income taxes, as is consistent with the
preservation of capital. Additionally, they are in direct contact
with issuers of the fund's holdings, and continually monitor the
municipal bond marketplace, looking for new holdings they believe
will help the fund achieve its objectives.
Additionally, conditions in the municipal bond market have been
exceptional for the last couple of years. As your fund's manager
will discuss in the Report from Putnam Management that follows,
this and several other important factors are making tax-exempt
investing more attractive than ever. I am confident that he will
continue to position the fund to take advantage of this favorable
environment.
Respectfully yours,
George Putnam
January 19, 1994
<PAGE>
Report from
Putnam Management
In seeking high current income consistent with capital
preservation, Putnam New York Tax Exempt Income Fund invests in a
diversified portfolio of longer-term, high-quality New York
tax-exempt securities.
Thanks to several factors, including favorable market conditions
for these securities, your fund's performance during the last 12
months has been very strong. Total return at net asset value was
12.02% for class A shares, assuming reinvestment of all
distributions.
Each of the factors that contributed to your fund's performance
merits its own discussion.
Attractive overall market conditions The tax-exempt securities
market as a whole has provided very strong returns over the last
year. A slowly recovering economy, coupled with low interest
rates and low inflation, has enhanced the performance of
tax-exempt securities and your fund's holdings. One reason for
this is that as interest rates decline, the value of all bonds,
including tax-exempt bonds, increases.
Additionally, with the passage of the Clinton tax bill, more and
more investors are looking for ways to shelter their investment
income from higher taxes. Tax-exempt bond investments continue to
be one of the few effective solutions. The demand for municipal
bonds has therefore continued to exceed the supply, and we
believe it will continue to do so in the coming months.
New York bonds: diversification plus Many institutions in New
York State are financed through government agencies. Municipal
bonds are issued on behalf of housing, electric power, hospitals,
education, water and sewer, and transportation industries. New
York is also known across the globe for its large and numerous
ports. The infrastructure that supports the activity of these
ports is also frequently financed through the issuance of
municipal bonds.
<PAGE>
Growth of a $10,000 investment since 12/1/83
Putnam New York Tax Exempt
- ---------- Class A shares at NAV
.......... Class A shares at POP
++++++++++ Lehman Municipal Bond Index
========== Lipper NY Muni Bond Funds Avg.
(line graph)
date/ Lehman Lipper NY Muni fund at fund at
year Muni Bond Bond Funds NAV POP
Index Average
12/1/83 10000 10000 10000 9525
11/30/84 10866 10799 10947 10433
11/30/85 13170 12891 13187 12568
11/30/86 15896 15507 16013 15262
11/30/87 15861 15045 15754 15015
11/30/88 17547 16899 17800 16965
11/30/89 19479 18592 19717 18792
11/30/90 20979 19548 20578 19613
11/30/91 22132 21810 23138 22053
11/30/92 25451 24250 25592 24391
11/30/93 28272 27229 28667 27322
Past performance is no assurance of future results. /
Performance of class B shares will vary from performance of class
A shares due to differences in sales charges and 12b-1 fees. For
example, $10,000 invested on January 4, 1993, subject to the
maximum contingent deferred sales charge would have been worth
$10,425 if redeemed 11/30/93. If invested on that date and not
redeemed, it would have been worth $10,925.
As a result, the New York municipal market provides a diversified
selection of actively traded bonds. This is an advantage for your
fund's management team, because it means that we have a wide
range of bonds to choose from when adding new holdings to the
portfolio.
Remaining fully invested Under current market conditions, we
continue to stress the importance of keeping as much of the
fund's assets as possible invested in tax-exempt bonds. We
believe that positioning a significant portion of the fund's
holdings in cash or other investments would deprive the fund of
benefits now available in the tax-exempt securities market.
Currently, your fund's portfolio holds a broad range of
securities in different sectors of the municipal bond market. So
while we believe that staying fully invested in the tax-exempt
securities market is paramount, we work to protect your fund's
share price by diversifying assets among a range of quality, New
York tax-exempt holdings. This helps to spread your investment
risk.
<PAGE>
Actively managed call protection One of our most important tools
for preserving and enhancing the fund's income stream over time
is active call protection. By taking advantage of the market's
current supply and demand imbalance, we have been
Top industry sectors (based on net assets as of 11/30/93)
(bar chart)
Education -----------------------------------------17.4%
Health Care -------------------------------------16.3%
Transportation ------------------------------------16.2%
Housing -----------------------11.4%
Water and Sewer -----------6.0%
Utilities --------4.8%
able to replace bonds with approaching call dates -- the ones
most likely to be called in by issuers refinancing at lower rates
- -- with bonds having later call dates, which offer better yields
over a longer period. Therefore, while there has been talk of a
municipal bond "call problem," your fund is turning this into an
opportunity to enhance the value of your fund shares.
Looking ahead All of the factors we have discussed here have
helped your fund provide a strong total return, the result of
both a consistent income stream and appreciation in the value of
the fund's holdings.
We believe that the current low rate of inflation coupled with
slow economic growth will continue for several months.
Additionally, we expect the demand for tax-exempt securities to
continue to outpace supply. Many analysts are predicting a sharp
drop in supply of municipal bonds over the next year, an
expectation we share. In the coming months, we will continue to
monitor the New York tax-exempt market and position your fund
accordingly.
<PAGE>
Putnam
New York
Tax Exempt
Income Fund
Annual
Report
For the Year Ended November 30, 1993
Report of Independent Accountants
To the Trustees and Shareholders of
Putnam New York Tax Exempt Income Fund
We have audited the accompanying statement of assets and
liabilities of Putnam New York Tax Exempt Income Fund, including
the portfolio of investments owned, as of November 30, 1993, and
the related statement of operations for the year then ended, the
statement of changes in net assets for each of the two years in
the period then ended, and the "Financial Highlights" for each of
the six years in the period then ended, for the two months ended
November 30, 1987, for each of the two years in the period ended
September 30, 1987, for the ten months ended September 30, 1985,
and for the year ended November 30, 1984 for class A shares, and
for the period January 4, 1993 (commencement of operations) to
November 30, 1993 for class B shares. These financial statements
and "Financial Highlights" are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these
financial statements and "Financial Highlights" based on our
audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements and "Financial Highlights" are free of
material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements. Our procedures included confirmation of
securities owned as of November 30, 1993, by correspondence with
the custodian and brokers. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable
basis for our opinion.
In our opinion, the financial statements and "Financial
Highlights" referred to above present fairly, in all material
respects, the financial position of Putnam New York Tax Exempt
Income Fund as of November 30, 1993 the results of its operations
for the year then ended, the changes in its net assets for each
of the two years in the period then ended, and the "Financial
Highlights" for each of the six years in the period then ended,
for the two months ended November 30, 1987, for each of the two
years in the period ended September 30, 1987, for the ten months
ended September 30, 1985, and for the year ended November 30,
1984, for class A shares, and for the period January 4, 1993
(commencement of operations) to November 30, 1993 for class B
shares in conformity with generally accepted accounting
principles.
Coopers & Lybrand
Boston, Massachusetts
January 12, 1994
<PAGE>
Portfolio of
investments owned
November 30, 1993
Municipal Bonds and Notes (100.6%)(a)
Principal Amount Ratings(b) Value
New York (92.3%)
34th Street Partnership
Inc. Rev. Bonds
$ 3,800,000 (34th Street Business
Impt.), 5 1/2s, 1/1/23 A $ 3,681,250
2,000,000 (34th Street Business
Impt.), 5 1/2s, 1/1/14 A 1,960,000
Albany, Indl. Dev. Agcy.
Rev. Bonds
1,215,000 (Mental Hlth. &
Retardation Ctr.),
Ser. B, 7.9s, 6/1/07 A 1,368,394
1,010,000 (Mental Hlth. &
Retardation Ctr.),
Ser. A, 7.9s, 12/1/06 A 1,137,513
5,000,000 Albany, Parking Auth.
Rev. Bonds (Green &
Hudson St. Garage),
Ser. A, 7.15s, 9/15/16 A 5,500,000
3,000,000 Babylon, Indl. Dev.
Agcy. Res. Recvy.
Rev. Bonds (Ogden
Martin Syst.), Ser. B,
8 1/2s, 1/1/19 Baa 3,416,250
Battery Park, City Auth.
Rev. Bonds
14,500,000 7.7s, 5/1/15 A 16,856,250
350,000 Ser. A, 5.7s, 11/1/20(c) AA 350,438
20,425,000 Ser. A, 5 1/4s, 11/1/17(c) AA 19,301,625
10,700,000 Ser. A, 5s, 11/1/13(c) AA 10,004,500
15,650,000 Ser. A, 5s, 11/1/08(c) AA 14,965,313
18,160,000 Ser. A, 4 3/4s, 11/1/19(c) AA 16,094,300
Buffalo, Rev. Bonds,
Ser. A & C, American
Municipal Bond
Assurance Corp.
(AMBAC)
390,000 7 1/4s, 4/1/10 AAA 444,600
390,000 7 1/4s, 4/1/09 AAA 444,600
135,000 7 1/4s, 4/1/08 AAA 153,900
385,000 7 1/4s, 4/1/07 AAA 438,900
<PAGE>
Erie Cnty., General
Obligation (G.O.) Bonds
1,700,000 Ser. B, 9 1/2s, 12/15/00 BBB $ 1,944,375
1,000,000 Ser. A, 9 1/2s, 2/1/00 BBB 1,098,750
1,700,000 Ser. B, 9 1/2s, 12/15/99 BBB 1,944,375
1,600,000 Ser. A, 9 1/2s, 2/1/99 BBB 1,758,000
2,000,000 Ser. A, 9.4s, 2/1/98 BBB 2,195,000
2,800,000 Ser. A, 9.3s, 2/1/97 BBB 3,069,500
4,000,000 Grand Central Dist.
Mgmt. Assn. Inc.
Rev. Bonds 6 1/2s,
1/1/22 A 4,275,000
Greece, Central School
Dist. Rev. Bonds
Financial Guaranty
Insurance Co. (FGIC),
950,000 6s, 6/15/15 AAA 1,026,000
950,000 6s, 6/15/14 AAA 1,029,563
950,000 6s, 6/15/13 AAA 1,028,375
950,000 6s, 6/15/12 AAA 1,026,000
950,000 6s, 6/15/11 AAA 1,022,438
950,000 6s, 6/15/10 AAA 1,026,000
325,000 Ithaca, Hsg. Corp.
Mtge. Rev. Bonds
(Eddygate Park Apts.
Project), 9s, 6/1/06 BBB/P 332,719
Jamesville-Dewit
Central School Dist.
Rev. Bonds AMBAC
675,000 5 3/4s, 6/15/10 AAA 706,219
675,000 5 3/4s, 6/15/09 AAA 708,750
5,000,000 Metro Trans. Auth.
Residual Interest
Bonds (RIBS) Ser 1993B,
AMBAC (acquired
6/30/93, cost $5,165,085)
7.292s, 7/1/08(d) AAA 5,018,750
Metro. Trans. Auth.
Svcs. Contract Fac.
Rev. Bonds
$ 3,750,000 (Trans. Fac.), Ser. 3,
7 3/8s, 7/1/08 Baa $ 4,340,625
13,290,000 (Trans. Fac.), Ser. 3,
7 1/2s, 7/1/16 BBB 15,732,038
3,000,000 (Trans. Fac.), 7 1/8s,
7/1/15 BBB 3,521,250
12,585,000 (Trans. Fac.), Ser. 5, 7s,
7/1/12 Baa 13,812,038
3,000,000 (Trans. Fac.), 7s, 7/1/09 Baa 3,303,750
12,000,000 (Commuter Fac.), Ser. 5,
6 1/2s, 7/1/16 Baa 12,705,000
2,000,000 (Commuter Fac.), Ser. P,
5 3/4s, 7/1/15 Baa 1,967,500<PAGE>
15,000,000 (Trans. Fac.), Ser. O,
5 3/4s, 7/1/13 Baa 15,075,000
13,125,000 Ser. O, 5 3/4s, 7/1/08 Baa 13,174,219
4,475,000 Ser. O, 5 3/4s, 7/1/07 Baa 4,514,156
9,190,000 (Commuter Fac), Ser. O,
5 1/2s, 7/1/17 Baa 8,879,838
4,500,000 (Trans. Fac.), Ser. O,
5 1/2s, 7/1/17 Baa 4,348,125
5,000,000 (Trans. Fac.), 5.45s,
7/1/07 Baa 4,900,000
1,575,000 (Commuter Fac.), Ser. 7,
4 3/4s, 7/1/19 Baa 1,366,313
3,500,000 (Trans. Fac.), Ser. 7,
4 3/4s, 7/1/19 Baa 3,036,250
Metro. Trans. Auth.
Transit Fac. Rev.
Bonds
2,925,000 Ser. F, 8 3/8s, 7/1/05 AAA 3,305,250
12,000,000 Municipal Bond
Insurance Assn
(MBIA)., Ser. K,
6 1/4s, 7/1/11 AAA 13,305,000
5,000,000 Ser. K, 6.1s, 7/1/03 Baa 5,262,500
9,500,000 Ser. M, MBIA 6s, 7/1/14 AAA 9,915,625
4,500,000 Ser. M, 6s, 7/1/14 Baa 4,584,375
13,400,000 Ser. M, FGIC, 5 1/2s,
7/1/08 AAA 13,718,250
Monroe Cnty.,
Rochester Pure Wtr.
Dist. G.O. Bonds
$ 1,305,000 8.4s, 6/1/01 AA $ 1,471,388
2,400,000 Monroe Cnty., Wtr. Auth.
Rev. Bonds, 6 1/4s,
8/1/11 AA 2,568,000
Muni. Assistance Corp.
for the City of NY Rev.
Bonds
4,500,000 Ser. 61, 5 3/4s, 7/1/08 AA 4,651,875
11,795,000 Ser. 62, 5 1/2s, 7/1/08 AA 12,045,644
NY City, G.O. Bonds
11,200,000 Ser. D, 8 1/4s, 8/1/11 A 13,258,000
2,775,000 Ser. B, 8 1/4s, 6/1/07 A 3,375,094
12,325,000 Ser. B, 8 1/4s, 6/1/05 A 14,944,063
205,000 Ser. A, 8s, 8/15/19 A 239,594
20,195,000 Ser. A, 8s, 8/15/19 A 24,814,606
1,000,000 Ser. D, 8s, 8/1/07 A 1,175,000
10,000,000 Ser. D, Group A, 8s,
8/1/03 A 11,712,500
5,575,000 Ser. D, 7.65s, 2/1/08 A 6,348,531
3,455,000 Ser. E, 7.6s, 2/1/05 A 3,960,294
4,730,000 Ser. F, 7.6s, 2/1/05 A 5,421,763
27,000,000 Ser. B, 7 1/2s, 2/1/06 A 30,577,500
20,000,000 Ser. B, 7 1/2s, 2/1/02 A 22,525,000
8,300,000 Ser. B, 7s, 10/1/13 A 9,057,375
18,800,000 Ser. F, 3s, 11/15/00 A 16,356,000
5,000,000 Ser. F, MBIA, 3s,
11/15/00 AAA 4,512,500
NY City, Health & Hosp.
Auth. Local Govt.
Rev. Bonds
2,750,000 Ser. A, 6s, 2/15/07 Baa 2,798,125
2,610,000 Ser. A, 6s, 2/15/05 Baa 2,678,513
NY City, Hsg. Dev.
Corp. Mtge. Multi-Fam.
Rev. Bonds
20,000,000 Ser. A, Federal Housing
Authority (FHA) Insd.,
6.6s, 4/1/30 AAA 21,650,000
$10,000,000 Ser. A, FHA Insd.,
6.55s, 4/1/18 AAA $ 10,912,500
10,000,000 Ser. B, FHA Insd.
5.85s, 5/1/26 AA 10,012,500
1,000,000 NY City, Indl. Dev.
Agcy. Civic Fac. Rev.
Bonds, Ser. 1990,
7 5/8s, 7/1/10 AAA 1,093,750
NY City Indl. Dev.
Agcy. Insd. Mtge.
Variable Rate Demand
Note (VRDN)
2,700,000 (Hosp. & Nursing
Home) Ser. B, FHA
Insd., 2.45s, 11/1/15 AA 2,700,000
13,000,000 NY City, Muni. Wtr. Fin.
Auth. RIBS 11.95s,
6/15/11 (acquired
8/9/91; cost
$13,587,860)(d) AAA/P 19,662,500
NY City, Muni. Wtr. Fin.
Auth. Wtr. & Swr.
Syst. Rev. Bonds
2,000,000 Ser. A, 7s, 6/15/14 A 2,195,000
5,000,000 Ser. A, 6 3/4s, 6/15/17 A 5,406,250
1,700,000 Ser. A, FGIC, 6 3/4s,
6/15/16 AAA 1,863,625
4,000,000 Ser. A, 6s, 6/15/17 AAA 4,175,000
8,150,000 6s, 6/15/17 A 8,323,188
9,085,000 Ser. A, 6s, 6/15/08 A 9,630,100
1,250,000 Ser. A, 5 1/2s, 6/15/11 AAA 1,259,375
2,000,000 Ser. A, MBIA, zero%,
6/15/03 AAA 1,265,000
8,835,000 Ser. A, MBIA, zero%,
6/15/02 AAA 5,919,450
NY State Crossover
G.O. Bonds
2,750,000 6 1/8s, 11/15/14 A 2,890,938
2,455,000 6.1s, 11/15/09 A 2,577,750
2,305,000 6.1s, 11/15/08 A 2,449,063
NY State Dorm.
Auth. RIBS
$13,000,000 (Cornell U.) (acquired
8/9/91, cost
$13,315,900)
11.722s, 7/1/30(d) AA/P $ 16,883,750
1,500,000 (City U.), Ser. T, 10 1/4s,
7/1/12 Baa 1,668,750
NY State Dorm. Auth.
Rev. Bonds
1,250,000 (The Society of NY
Hosp.), 9 3/4s, 7/1/15 Baa 1,315,625
5,000,000 (NY Dept of Ed.), 7 3/4s,
7/1/21 Baa 5,843,750
10,000,000 (City U. Syst.), 7 5/8s,
7/1/14 11,125,000
2,000,000 (City U. Syst.), Ser. A,
7 5/8s, 7/1/13 Baa 2,225,000
9,000,000 (State U. Edl. Fac.),
Ser. A, 7 5/8s, 5/15/05 Baa 10,687,500
10,500,000 (State U. Edl. Fac.),
Ser. B, 7 1/2s, 5/15/11 Baa 12,521,250
18,800,000 (City U. Syst.), Ser. C,
7 1/2s, 7/1/10 Baa 22,348,500
500,000 (Wildwood School),
7.3s, 7/1/15 A 561,875
4,000,000 (State U. Athletic Fac.),
7 1/4s, 7/1/21 Baa 4,465,000
1,995,000 (State U. Edl. Fac.),
Ser. A, 7 1/4s,
5/15/18 Baa 2,374,050
260,000 (State U. Edl. Fac.),
7 1/4s, 5/15/18 Baa 309,400
7,250,000 (City U. Syst.), Ser. A,
6 1/2s, 7/1/16 Baa 7,404,063
26,605,000 (City U. Syst.), Ser. A,
6 1/2s, 7/1/15 Baa 27,170,356
1,650,000 (City U. Syst.), Ser. A,
6 1/2s, 7/1/14 Baa 1,685,063
$ 4,465,000 (U. of Rochester), 6 1/2s,
7/1/09 A $ 4,833,363
2,500,000 (City U.), Ser. U, 6.45s,
7/1/05 Baa 2,684,375
1,500,000 (City U.), Ser. U, 6 3/8s,
7/1/08 Baa 1,571,250
10,000,000 (State U. Edl. Fac.),
Ser. A, 6 1/4s,
5/15/17 Baa 10,325,000
1,685,000 (State U. Edl. Fac.),
Ser. A, 6.2s, 5/15/06 Baa 1,758,719
16,750,000 (State U. Edl. Fac.),
Ser. A, 6s, 5/15/22 Baa 16,875,625
2,200,000 Ser. A, 6s, 7/1/20 Baa 2,244,000
5,000,000 (City U.), Ser. B, 6s,
7/1/14 Baa 5,118,750
1,000,000 (Columbia U.), 5 3/4s,
7/1/15 Aaa 1,025,000
7,380,000 (City U. Syst.), Ser. A,
5 3/4s, 7/1/13 Baa 7,333,875
3,595,000 (City U. Syst.), Ser. A,
5 3/4s, 7/1/07 Baa 3,639,938
26,505,000 Ser. A, 5 1/2s, 5/15/13 Baa 25,676,719
12,840,000 (City U.), Ser. F, 5 1/2s,
7/1/12 Baa 12,342,450
13,810,000 (State U. Edl. Fac.),
Ser. A, 5 1/2s, 5/15/10 Baa 13,464,750
5,000,000 (State U. Edl. Fac.),
Ser. A, 5 1/2s, 5/15/09 Baa 4,887,500
15,000,000 (State U. Edl. Fac.),
Ser. B, 5 3/8s, 5/15/07 Baa 14,718,750
5,000,000 (State U. Edl. Fac.),
Ser. B, 5 1/4s, 5/15/19 Baa 4,606,250
13,250,000 (State U. Edl. Fac.),
Ser. A, 5 1/4s, 5/15/15 Baa 12,405,313
3,500,000 (State U. Edl. Fac.),
Ser. B, 5 1/4s, 5/15/13 Baa 3,276,875
21,500,000 (City U.), Ser. F, 5s,
7/1/20 Baa 19,484,375
$27,990,000 (State U. Edl. Fac.),
Ser. B, 5s, 5/15/18 Baa $ 24,911,100
10,000,000 (City U. Syst.), Ser. C,
5s, 7/1/17 Baa 9,050,000
4,020,000 (Columbia U.), 5s,
7/1/15 Aaa 3,849,150
15,985,000 (Cornell U.), 5s, 7/1/15 AA 15,445,506
23,864,000 (State U. Edl. Fac.),
Ser. B, zero%,
5/15/10 Baa 9,068,320
48,000,000 (State U. Edl. Fac.),
Ser. B, zero%,
5/15/09 Baa 19,500,000
54,520,000 (State U. Edl. Fac.),
Ser. B, zero%,
5/15/08 Baa 23,784,350
10,000,000 (State U. Edl. Fac.),
Ser. B, zero%,
5/15/07 Baa 4,650,000
10,580,000 (State U. Edl. Fac.),
Ser. B, zero%,
5/15/06 Baa 5,276,775
10,000,000 NY State Energy
Research & Dev.
Auth. Elec. & Gas
Fac. Rev. RIBS
(Brooklyn Union
Gas Co.), Ser. B,
10.953s, 7/1/26 A 12,562,500
NY State Energy
Research & Dev.
Auth. Elec. & Gas
Fac. Rev. Bonds
5,000,000 (Consolidated Edison
Co. Project), 9s,
8/15/20 AA 5,600,000
(Brooklyn Union Gas
Co. Project), Ser. A,
8,100,000 9s, 5/15/15 A 8,839,125
$ 8,000,000 (Brooklyn Union Gas
Co.), Ser. 1, 7 1/8s,
12/1/20 A $ 8,770,000
10,000,000 (Consolidated Edison
Co. Project), Ser. B,
5 1/4s, 8/15/20 AA 9,487,500
NY State Energy
Research & Dev.
Auth. Poll. Control
Rev. Bonds
5,000,000 (Orange and
Rockland Util.
Project), 10 1/4s,
10/1/14 A 5,362,500
5,000,000 (Orange and Rockland
Util. Project), 9s,
8/1/15 A 5,493,750
NY State Env. Fac.
Corp. Poll. Control
Rev. Bonds
8,655,000 (State Wtr. Revolving
Fund), Ser A, 7 1/2s,
6/15/12 Aa 10,169,625
3,780,000 (State Wtr. Revolving
Fund), 7 1/8s, 7/1/12 AA 4,238,325
4,480,000 (State Wtr. Revolving
Fund), Ser. E, 6 7/8s,
6/15/10 A 5,112,800
6,870,000 (State Wtr. Revolving
Fund), Ser. B, 6.65s,
9/15/13 AA 7,668,638
5,265,000 (State Wtr. Revolving
Fund), Ser. A, 6.55s,
9/15/10 AA 5,837,569
10,500,000 (State Wtr. Revolving
Fund), Ser. E, 6 1/2s,
6/15/14 A 11,668,125
1,000,000 (State Wtr. Revolving
Fund), Ser. B, 5.2s,
5/15/14 AA 973,750
2,670,000 (State Wtr. Revolving
Fund), Ser. B, 5.1s,
5/15/10 AA 2,609,925<PAGE>
NY State G.O. Bonds
$3,550,000 5 1/4s, 3/15/13 A $ 3,452,375
3,140,000 5 1/4s, 3/15/12 A 3,057,575
3,690,000 5.2s, 3/15/11 A 3,593,138
2,780,000 5.2s, 3/15/10 A 2,710,500
NY State Hsg. Corp.
Rev Bonds
1,225,000 5 1/2s, 11/1/20(c) AA 1,194,375
5,300,000 5s, 11/1/18(c) AA 4,856,125
13,135,000 5s, 11/1/13(c) AA 12,231,969
16,750,000 Ser. A, zero%, 11/1/10 A 8,835,625
NY State Hsg. Fin.
Agcy. Rev. Bonds
28,000,000 Ser. A, 8s, 11/1/08 Baa 32,480,000
9,445,000 (Multi-Fam. Hsg. Insd.
Mtge. Program),
Ser. A, 7s, 8/15/22 AA 10,271,438
1,050,000 (Multi-Fam. Mtge.
Hsg. Insd. Mtge.
Program), Ser. A,
6.95s, 8/15/12 AA 1,141,875
3,250,000 (Multi-Fam. Hsg.
Secd. Mtge.),
Ser. PG-E, 6 3/4s,
8/15/25 AA 3,489,688
2,750,000 (Multi-Fam. Mtge.
Hsg.), Ser. C, FHA
Insd., 6 1/2s, 8/15/24 AAA 2,897,813
1,000,000 (Multi-Fam. Mtge.
Hsg.), Ser. C, FHA
Insd., 6.45s, 8/15/14 AAA 1,052,500
1,455,000 (Multi-Fam. Hsg.
Secd. Mtge.),
Ser. D, 6.2s, 8/15/12 Aa 1,518,656
NY State Hsg. Fin.
Agcy. Svcs. Contract
Oblig. Rev. Bonds
9,000,000 Ser. A, 7.8s, 9/15/20 AAA 10,890,000
7,500,000 Ser. C, 7.3s, 3/15/21 AAA 8,915,625
1,000,000 Ser. C, 7.3s, 9/15/12 Baa 1,088,750
1,500,000 Ser. A, 7 1/4s, 9/15/12 Baa 1,678,125
$11,250,000 Ser. C, 6.3s, 3/15/22 Baa $ 11,615,625
2,700,000 Ser. C, 6.3s, 9/15/12 Baa 2,808,000
25,250,000 Ser. C, 6 1/8s, 3/15/20 Baa 25,755,000
16,335,000 Ser. C, 5 7/8s, 9/15/14 Baa 16,396,256
14,500,000 Ser. D, 5 3/8s, 3/15/23 Baa 13,485,000
NY State Job Dev.
Auth. State
Guaranteed
Special
Purpose VRDN
4,400,000 Ser. A, 3s, 3/1/05 VMIG1 4,400,000
2,300,000 Ser. A, 1.9s, 3/1/02 A 2,300,000
NY State Local
Govt. Asst. Corp.
Rev. Bonds
5,000,000 Ser. A, 7 1/4s, 4/1/18 A 5,887,500
7,100,000 Ser. B, 7s, 4/1/21 AAA 8,147,250
15,600,000 Ser. C, 7s, 4/1/21 Aaa 18,135,000
11,750,000 Ser. A, 6 7/8s, 4/1/19 A 13,086,563
6,100,000 Ser. D, 6 3/4s, 4/1/21 A 6,748,125
21,205,000 Ser. A, 6 1/2s, 4/1/20 A 22,662,844
4,660,000 Ser. B, 6 1/4s, 4/1/21 A 4,910,475
28,250,000 Ser. C, 6 1/4s, 4/1/18 A 29,768,438
10,000,000 Ser. B, 6s, 4/1/18 AAA 10,312,500
18,475,000 Ser. C, 5 1/2s, 4/1/17 A 18,244,063
5,550,000 Ser. B, 5 3/8s, 4/1/16 A 5,321,063
24,700,000 NY State Med. Care
Fac. Fin. Agcy. RIBS
(Montefiore Med. Ctr.),
Ser. A, MBIA
($21,400,000 par
acquired 10/3/91,
cost $23,215,148;
$3,300,000 par
acquired 4/8/92,
cost $3,580,500)
11.368s, 2/15/24(d) AAA 29,794,375
NY State Med. Care
Fac. Fin. Agcy.
Rev. Bonds
$ 5,450,000 (Nursing Home Mtge.),
Ser. B, FHA Insd.,
10 1/2s, 1/15/24 A $ 5,599,875
1,000,000 (Hosp. & Nursing
Home), Ser. B, FHA
Insd., 9 1/8s, 2/15/25 AA 1,073,750
4,000,000 (Hosp. & Nursing
Home), Ser. C, FHA
Insd., 9s, 2/15/26 AA 4,290,000
340,000 (Hosp. & Nursing
Home), Ser. B, FHA
Insd., 8 7/8s, 8/15/27 AA 391,425
6,850,000 (Mental Hlth. Svcs.
Fac.), Ser. A, 8 7/8s,
8/15/07 Baa 7,963,125
12,730,000 (Hosp. & Nursing
Home), Ser. B, FHA
Insd., 8s, 2/15/28 AAA 14,496,288
8,750,000 (Hosp. & Nursing
Home Insd. Mtge.),
Ser. A, FHA Insd.,
8s, 2/15/27 AA 9,876,563
14,135,000 (Mental Hlth. Svcs. Fac.),
Ser. B, 7 7/8s, 8/15/20 BBB 16,166,906
21,000,000 (Mental Hlth. Svcs. Fac.),
Ser. A, 7.8s, 2/15/19 AA 23,441,250
22,525,000 (Hosp. & Nursing
Home), Ser. A, FHA
Insd., 7.7s, 2/15/25 AA 26,044,531
5,000,000 (Buffalo Gen. Hosp.),
Ser. C, FHA Insd.,
7.7s, 2/15/22 AAA 5,656,250
9,780,000 (Mental Hlth. Svcs. Fac.),
Ser. B, 7 5/8s, 8/15/17 Baa 11,051,400
34,000,000 (Mental Hlth. Svcs. Fac.),
Ser. A, 7 1/2s, 2/15/21 Baa 37,995,000
$18,500,000 (St. Luke's Hosp.),
Ser. B, FHA Insd.,
7.45s, 2/15/29 AA $ 21,645,000
2,375,000 (Mental Hlth. Svcs.
Fac.), Ser. C, 7.3s,
2/15/21 Baa 2,636,250
10,730,000 (Insd. Mtge. Hosp.),
FHA Insd., 7 1/4s,
2/15/12 AA 11,803,000
5,175,000 (Beth Israel Med.
Ctr.), Project A, 7.2s,
11/1/14 A 5,491,969
1,205,000 (Hosp. & Nursing
Home), Ser. B, FHA
Insd., 7s, 8/15/32 AA 1,336,044
24,000,000 (Hosp. & Nursing
Home), Ser. B, FHA
Insd., 6.95s, 2/15/32 AA 26,430,000
3,000,000 (Hosp. & Nursing
Home), Ser. A, FHA
Insd., 6 7/8s, 2/15/32 AA 3,285,000
6,625,000 (Methodist Hosp. &
Nursing Home),
Ser. A, FHA Insd.,
6.7s, 8/15/23 AA 7,204,688
1,200,000 (Hosp. & Nursing
Home), Ser. C,
6.55s, 8/15/12 AA 1,285,500
1,250,000 (Aurelia Osborn Fox
Hosp.), Ser. A, 6 1/2s,
11/1/19 AAA 1,365,625
2,000,000 (Longterm Hlth. Care),
Ser. C, 6.4s, 11/1/14 AAA 2,165,000
20,300,000 (Hosp. & Nursing
Home Insd. Mtge.),
Ser. C, FHA Insd.,
6 3/8s, 8/15/29 AAA 21,568,750
6,000,000 (Hosp. & Nursing
Home), Ser. A, FHA
Insd., 6.3s, 8/15/23 AA 6,292,500
$29,850,000 (Hosp. & Nursing
Home), Ser. B, FHA
Insd., 6.2s, 8/15/22 AAA $ 31,230,563<PAGE>
2,000,000 (Central Suffolk Cnty.
Hosp. Project),
Ser. A, 6 1/8s,
11/1/16 BBB 2,000,000
5,000,000 (Hosp. & Nursing
Home), Ser. C, FHA
Insd., 5 3/4s, 8/15/19 AAA 5,062,500
5,000,000 (Mental Hlth. Svcs.
Fac.), Ser. A, AMBAC,
5.7s, 8/15/14 AAA 5,093,750
6,000,000 (Mental Hlth. Svcs.
Fac.), Ser. D, 5 3/8s,
8/15/13 Baa 5,692,500
10,000,000 (Mental Hlth. Svcs.
Fac.), Ser. D, 5 1/4s,
8/15/23 Baa 9,112,500
NY State Med. Care
Fac. Fin. Agcy.
Secured Hosp. Rev.
Bonds
12,235,000 Ser. A, 7.4s, 8/15/21 Baa 13,840,844
6,500,000 Ser. A, 7.35s, 8/15/11 Baa 7,328,750
NY State Mtge. Agcy.
Rev. Bonds
3,415,000 (Homeownership Dev.
Program), Ser. BB-2,
7.95s, 10/1/15 Baa 3,675,394
5,000,000 (Homeownership Dev.
Program), Ser. QQ,
7.7s, 10/1/12 AA 5,518,750
1,000,000 (Homeownership Dev.
Program), Ser. TT,
7 1/2s, 4/1/15 Aa 1,101,250
5,000,000 (Homeownership Dev.
Program), Ser. 27,
6.9s, 10/1/15 Aa 5,450,000
$13,810,000 Ser. A, 6 7/8s, 4/1/17 Aa $ 14,396,925
13,500,000 (Homeownership Dev.
Program), Ser. 29-B,
6.45s, 4/1/15 AA 14,259,375
45,755,000 (Single-Fam.) Ser. 2,
zero%, 10/1/14 Aa 6,577,281
4,250,000 NY State Muni. Bond
Bank Agcy. Special
Program Rev. Bonds
(Rochester), 6 3/4s,
3/15/11 A 4,627,188
NY State Pwr. Auth.
General Purpose Rev.
Bonds
5,400,000 Ser. U, 5 3/4s, 1/1/18 AA 5,420,250<PAGE>
NY State Thruway Auth.
Svc. Contract
Rev. Bonds
13,300,000 7 1/4s, 1/1/10 Baa 14,912,625
6,500,000 (Local Hwy. & Bridge
Project), 6 1/4s,
4/1/07 Baa 6,833,125
20,365,000 6s, 1/1/11 Baa 20,823,213
NY State Urban Dev.
Corp. Rev. Bonds
9,000,000 (Onondaga Cnty.
Convention Project),
7 7/8s, 1/1/20 Baa 10,440,000
23,250,000 (State Fac.), 7 1/2s,
4/1/20 Baa 26,534,063
33,250,000 (Correctional Fac.),
Ser. 2, 7 1/2s, 1/1/18 BBB 39,484,375
5,000,000 (Correctional Fac.),
Ser. 3, 7s, 1/1/21 Baa 5,525,000
10,000,000 (Correctional Fac.),
5 1/2s, 1/1/15 Baa 9,625,000
New York State Job
Dev. Auth. State
Guaranteed VRDN
2,200,000 Ser. B, 1.85s, 3/1/05 VMG1 2,200,000
Newark-Wayne Cnty.,
Cmnty Hosp. Rev.
Bonds
$ 2,250,000 Ser. B, FHA Insd.,
5 7/8s, 1/15/33 AAA $ 2,306,250
North Cnty., Dev. Auth.
Rev. Bonds
1,000,000 (Solid Waste Mgmt.
Syst.), Ser. A, 6 3/4s,
7/1/12 Baa 1,052,500
Onondaga Cnty.,
G.O. Bonds
2,600,000 5.7s, 4/1/10 AA 2,723,500
2,600,000 5.7s, 4/1/08 AA 2,756,000
Ontario Cnty., Indl.
Dev. Agcy. Res.
Recvy. Rev.Bonds
2,800,000 (High Tech. Fac.
Group), 7 3/8s, 5/1/96 A 2,849,000
Port Auth. of NY &
NJ Cons. Bonds
5,250,000 Ser. 51-E, 12s, 12/1/14 AA/P 5,617,500
11,000,000 53rd Ser., 8.7s, 7/15/20 AA 12,058,750
10,000,000 Ser. 67, 6 7/8s, 1/1/25 AA 11,000,000<PAGE>
Port Auth. of NY &
NY Cons. RIBS
8,600,000 (acquired 8/29/91,
cost $8,814,828)
10.781s, 8/1/26(d) AA 10,105,000
Rockland Cnty., Swr.
Dist. Rev. Bonds
1,000,000 7.7s, 6/1/16 AA 1,138,750
1,000,000 7.7s, 6/1/15 AA 1,138,750
900,000 7.7s, 6/1/14 AA 1,024,875
1,250,000 Schenectady, Indl.
Dev. Agcy. Rev.
Bonds 7 3/8s, 9/1/09 AAA 1,420,313
$ 7,000,000 Syracuse, Indl. Dev.
Agcy. Civic Fac.
VRDN 7s, 4/1/18 AA/P $ 7,000,000
Triborough Bridge &
Tunnel Auth.
General Porpose
Rev. Bonds
38,750,000 (Convention Ctr.
Project), Ser. E,
7 1/4s, 1/1/10 Baa 45,240,601
2,500,000 Ser. X, 6 5/8s, 1/1/12 A 2,825,000
4,750,000 Ser. Y, 6 1/8s, 1/1/21 A 5,159,688
6,725,000 Ser. J, 6s, 1/1/14 A 6,918,344
16,925,000 Ser. Q, 6s, 1/1/13 A 17,411,594
12,500,000 (Convention Ctr.
Project), Ser. E,
6s, 1/1/11 Baa 12,906,250
14,575,000 Ser. P, 5 1/2s, 1/1/19 A 14,483,906
7,000,000 Ser. Y 5 1/2s, 1/1/17 A 7,035,000
7,000,000 Ser. B, zero%, 1/1/22 Aa 1,426,250
5,000,000 Ser. B, zero%, 1/1/21 Aa 1,081,250
27,570,000 Ser. B, zero%, 1/1/15 Aa 8,374,388
18,000,000 Triborough Bridge &
Tunnel Auth. Special
Oblig. RIBS MBIA
(acquired 7/10/92,
cost $18,135,000)
9.52s, 1/1/12(d) AAA 20,205,000
United Nations Dev.
Corp. Rev. Bonds
1,300,000 (Phase 2 & 3), Ser. A,
7 7/8s, 7/1/26 A 1,454,375
White Plains, G.O.
Rev. Bonds
1,000,000 4.9s, 1/15/08 Aa 970,000
1,000,000 4.8s, 1/15/07 Aa 971,250
1,000,000 4.7s, 1/15/06 Aa 972,500
1,000,000 4.6s, 1/15/05 Aa 975,000
2,240,419,968<PAGE>
Puerto Rico (8.3%)
$65,000,000 Cmnwlth. of Puerto
Rico, Aqueduct &
Swr. Auth. Rev. Bonds
Ser. A, 7 7/8s, 7/1/17 BBB $ 74,668,750
5,000,000 Cmnwlth. of Puerto
Rico, Hwy. & Trans.
Auth. VRDN
Ser. X, 2.0s, 7/1/99 A1 5,000,000
8,000,000 Cmnwlth. of Puerto
Rico Tax & Anticipated
Rev. Notes
Ser. A, 3s, 7/29/94 MIG1 8,211,706
Puerto Rico Elec.
Pwr. Auth. Rev. Bonds
12,345,000 Ser. I, 10 1/4s, 7/1/09 AAA 13,209,150
7,500,000 Ser. J, 9 1/8s, 7/1/15 AAA 8,362,500
68,500,000 Ser. N, zero%, 7/1/17 A 17,981,250
11,175,000 Ser. O, zero%, 7/1/17 A 2,933,438
Puerto Rico Hsg.
Bank & Fin. Agcy.
Single Fam. Rev. Bonds
8,965,000 7 1/4s, 12/1/06 AAA 9,592,550
Puerto Rico Hsg.
Fin. Corp. Rev. Bonds
1,269,573 (Bayamon Hsg. Dev.
Project), 7 1/2s,
7/1/21 Baa 1,382,248
Puerto Rico Indl.
Med. & Poll. Ctl.
Fac. Rev. Bonds
3,000,000 5.1s, 12/1/18(c) Aaa 2,910,000
Puerto Rico Pub.
Bldg. Auth. Hlth. Fac.
30,000,000 VRDN Ser. M, 5 1/2s,
7/1/07 Baa 30,300,000
6,925,000 RIBS (acquired 6/10/93,
cost $9,062,332)
10.48s, 7/1/02(d) A 9,296,813
$11,350,000 Puerto Rico Tel. Auth.
Tel. Auth. RIBS
(acquired 9/25/92,
cost $4,387,500)
8.912s, 1/1/20(d) A $ 12,499,188
3,865,000 U. of Puerto Rico
Rev. Bonds, Ser. I,
10 5/8s, 6/1/04 AAA 4,125,888
200,473,481
Total Investments
(cost $2,207,381,893) $2,440,893,449
<PAGE>
(a) Percentages indicated are based on net assets of
$2,427,259,042 which correspond to a net asset value per class A
share and class B share of $9.38 and $9.37, respectively.
(b) The Moody's or Standard & Poor's ratings indicated are
believed to be the most recent ratings available at November 30,
1993, for the securities listed. Ratings are generally ascribed
to securities at the time of issuance. While the rating agencies
may from time to time revise such ratings, they undertake no
obligation to do so, and the ratings indicated do not necessarily
represent ratings which the agencies would ascribe to these
securities at November 30, 1993. Ratings are not covered by the
Report of Independent Accountants.
(c) These securities, having a total value of $81,908,645 or 3.4%
of net assets, has been purchased on a "forward commitment"
basis, that is, the Fund has agreed to take delivery of and make
payment for these securities beyond the settlement time of five
business days after the trade date and subsequent to the date of
this report. The purchase price and interest rate of such
securities are fixed at the trade date although the Fund does not
earn any interest on such securities until the settlement date.
(d) Restricted as to public resale. At the date of acquistion,
these securities were valued at cost. There were no outstanding
unrestricted securities of the same class as those held. Total
market value of restricted securities held at November 30, 1993,
was $123,465,376 or 5.1% of net assets.
(e) The aggregate identified cost for federal income tax purposes
is $2,207,392,450, resulting in gross unrealized appreciation and
depreciation of $239,364,849 and $5,863,850, respectively, or net
unrealized appreciation of $233,500,999.
The rates shown on Residual Interest Bonds (RIBS) and Variable
Rate Demand Notes (VRDN) are the current interest rates at
November 30, 1993, which are subject to change based on the terms
of the security. The Fund had the following industry group
concentrations greater than 10% at November 30, 1993 (as a
percentage of net assets):
Education 17.4%
Health Care 16.3
Transportation 16.2
Housing 11.4
<PAGE>
<TABLE>
<CAPTION>
Statement of
assets and liabilities
November 30, 1993
<S> <C> <C>
Assets
Investments in securities, at value (identified cost
$2,207,381,893) (Note 1) $2,440,893,449
Cash 18,272,711
Interest receivable 43,762,829
Receivable for shares of the Fund sold 6,254,716
Receivable for securities sold 25,645,531
Prepaid expenses 312
Total assets 2,534,829,548
Liabilities
Payable for securities purchased $96,687,345
Distributions payable to shareholders 4,939,587
Payable for shares of the Fund repurchased 1,561,701
Payable for compensation of Manager (Note 2) 2,863,206
Payable for administrative services (Note 2) 6,741
Payable for compensation of Trustees (Note 2) 780
Payable for investor servicing and custodian fees (Note 2) 457,690
Payable for distribution fees (Note 2) 866,626
Other accrued expenses 186,830
Total liabilities 107,570,506
Net assets $2,427,259,042
Represented by
Paid-in capital (Note 4) $2,177,798,300
Distributions in excess of net investment income (476,652)
Accumulated net realized gain on investment transactions 16,425,838
Net unrealized appreciation of investments 233,511,556
Total -- Representing net assets applicable to
capital shares outstanding $2,427,259,042
Computation of net asset value and offering price
Net asset value and redemption price of class A shares
($2,280,603,601 divided by 243,129,005 shares) $9.38
Offering price per class A share (100/95.25 of $9.38)* $9.85
Net asset value and offering price of Class B shares
($146,655,441 divided by 15,653,760 shares)** $9.37
*On single retail sales of less than $25,000. On sales of $25,000 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
<PAGE>
<TABLE>
<CAPTION>
Statement of
operations
Year ended November 30, 1993
<S> <C> <C>
Tax exempt interest income $144,546,345
Expenses:
Compensation of Manager (Note 2) $10,741,863
Investor servicing and custodian fees (Note 2) 1,680,720
Compensation of Trustees (Note 2) 47,740
Reports to shareholders 41,456
Auditing 71,047
Legal 40,422
Postage 157,567
Administrative services (Note 2) 38,655
Distribution fees -- Class A (Note 2) 4,027,835
Distribution fees -- Class B (Note 2) 601,037
Registration fees 111,046
Other 77,180
Total expenses 17,636,568
Net investment income 126,909,777
Net realized gain on investments (Notes 1 and 3) 36,648,077
Net realized loss on futures contracts (Notes 1 and 3) (13,832,372)
Net unrealized appreciation on investments during the year 95,362,861
Net gain on investment transactions 118,178,566
Net increase in net assets resulting from operations $245,088,343
/TABLE
<PAGE>
<TABLE>
CAPTION>
Statement of
changes in net assets
<S> <C> <C>
Increase in net assets
Operations:
Net investment income $ 126,909,777 $ 115,901,364
Net realized gain on investments 36,648,077 33,789,511
Net realized loss on futures contracts (13,832,372) (427,981)
Net unrealized appreciation of investments 95,362,861 33,700,452
Net increase in net assets resulting from operations 245,088,343 182,963,346
Distributions to shareholders from;
Net investment income
Class A (122,826,647) (118,299,975)
Class B (3,368,397) --
Net realized gain on investments -- Class A (22,277,277) (15,826,356)
In-excess of net realized gain on
investments -- Class A (4,353,395) --
Increase from capital share transactions (Note 4)374,496,587 252,279,746
Total increase in net assets 466,759,214 301,116,761
Net assets
Beginning of year 1,960,499,828 1,659,383,067
End of year (including distributions in excess
of net investment income of $(476,652) and
$(1,191,385), respectively) $2,427,259,042 $1,960,499,828
/TABLE
<PAGE>
<TABLE>
<CAPTION>
Financial highlights*
(For a share outstanding throughout the period)
For the period
January 4, 1993
(commencement
of operations)
November 30 Year ended November 30
1993 1993 1992 1991 1990
Class B Class A
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $8.95 $8.98 $8.75 $8.34 $8.61
Investment Operations
Net Investment Income .40 .53 .57 .58 .58
Net Realized and Unrealized Gain
(Loss) on Investments .42 .52 .32 .42 (.23)
Total from Investment Operations .82 1.05 .89 1.00 .35
Less Distributions from:
Net Investment Income (.40) (.53) (.58) (.59) (.56)
Net Realized Gain on Investments -- (.10) (.08) -- (.06)
In Excess of Net Realized
Gain on Investments -- (.02) -- -- --
Total Distributions (.40) (.65) (.66) (.59) (.62)
Net Asset Value,
End of Period $9.37 $9.38 $8.98 $8.75 $8.34
Total Investment Return at
Net Asset Value (%) (a) 10.16(b) 12.02 10.60 12.44 4.37
<PAGE>
Net Assets, End of Period
(in thousands) $146,665 $2,280,604 $1,960,500 $1,659,383 $1,416,555
Ratio of Expenses to Average
Net Assets (%) 1.44(b) .76 .66 .63 .56
Ratio of Net Investment Income to
Average Net Assets (%) 4.83(b) 5.67 6.44 6.84 6.96
Portfolio Turnover (%) 26.60 26.60 20.13 49.91 17.22
See page 21 for notes to financial highlights.
/TABLE
<PAGE>
<TABLE>
<CAPTION>
Two Ten
months months Year
ended ended ended
Year ended November 30 Nov. 30 Year ended Sept. 30 Sept. 30 Nov. 30
1989 1988 1987 1987 1986 1985 1984
Class A
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $8.33 $7.99 $7.76 $8.56 $7.57 $7.10 $7.11
Investment Operations
Net Investment Income .60 .61 .11 .60 .65 .56 .65
Net Realized and Unrealized Gain
(Loss) on Investments .27 .39 .22 (.72) .99 .47 (.01)
Total from Investment Operations .87 1.00 .33 (.12) 1.64 1.03 .64
Less Distributions from:
Net Investment Income (.59) (.60) (.10) (.61) (.65) (.56) (.65)
Net Realized Gain on Investments -- (.06) -- (.07) -- -- --
In Excess of Net Realized
Gain on Investments -- -- -- -- -- -- --
Total Distributions (.59) (.66) (.10) (.68) (.65) (.56) (.65)
Net Asset Value,
End of Period $8.61 $8.33 $7.99 $7.76 $8.56 $7.57 $7.10
Total Investment Return at
Net Asset Value (%) (a) 10.77 12.99 25.41(b) (1.76) 22.41 17.73(b) 9.47
Net Assets, End of Period
(in thousands) $1,313,050 $1,063,650 $958,201 $950,417 $701,799 $397,735 $241,698
<PAGE>
Ratio of Expenses to Average
Net Assets (%) .57 .54 .48(b) .55 .56 .64(b) .71
Ratio of Net Investment Income to
Average Net Assets (%) 6.94 7.34 7.95(b) 7.08 7.81 8.67(b) 9.05
Portfolio Turnover (%) 42.87 31.91 12.90(c) 43.28 50.45 58.95(c) 122.21
*Financial highlights for periods ended through November 30, 1992 have been restated to conform with requirements issued
by the SEC in April 1993. The table has been restated to reflect a 3-for-1 share split, class A only, declared by the
Fund to shareholders of record on October 27, 1989 payable on October 28, 1989.
(a)Total investment return assumes dividend reinvestment and does not reflect the effect of sales charges.
(b)Annualized.
(c)Not annualized.
/TABLE
<PAGE>
Notes to
financial statements
November 30, 1993
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 as high a level of current income exempt
from federal income tax and New York State and City personal
income tax as Putnam Management believes is consistent with
preservation of capital by investing primarily in a portfolio of
longer-term New York tax exempt securities.
The Fund offers both class A and class B shares. The Fund
commenced its public offering of class B shares on January 4,
1993. Class A shares are sold with a maximum front-end sales
charge of 4.75%. 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.
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 is 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. In addition, the Trustees
declare separate dividends on each class of shares.
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 Tax-exempt bonds and notes are stated on
the basis of valuations provided by a pricing service, approved
by the Trustees, which uses information with respect to
transactions in bonds, quotations from bond dealers, market
transactions in comparable securities and various relationships
between securities in determining value. The fair value of
restricted securities is determined by the Manager following
procedures approved by the Trustees.
B) 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.
C) Futures A futures contract is an agreement between two parties
to buy and sell a security at a set price on a future date. Upon
entering into such a contract, the Fund is required to pledge to
the broker an amount of cash or tax-exempt securities equal to
the minimum "initial margin" requirements of the exchange.
Pursuant to the contract, the Fund agrees to receive from or pay
to the broker an amount of cash equal to the daily fluctuation in
value of the contract. Such receipts or payments are known as
"variation margin," and are recorded by the Fund as unrealized
gains or losses. When the contract is closed, the Fund records a
realized gain or loss equal to the difference between the value
of the contract at the time it was opened and the value at the
time it was closed. The potential risk to the Fund is that the
change in value of the underlying securities may not correspond
to the change in value of the futures contracts.
D) 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.
E) Distributions to shareholders Income dividends are recorded
daily by the Fund and are distributed to the shareholders
monthly. Capital gains distributions, if any, are recorded on the
ex-dividend date and paid annually.
F) Amortization of bond premium and discount Any premium
resulting from the purchase of securities is amortized using the
effective yield method for bonds issued after September 27, 1985,
and on a straight-line basis for bonds issued prior thereto. The
premium in excess of the call price, if any, is amortized to the
call date; thereafter, the remaining excess premium is amortized
to maturity. Discount on zero-coupon bonds is accreted according
to the effective yield method.
Note 2
Management fee,
administrative
services, and
other transactions
Compensation of Putnam Investment Management, Inc. (formerly
known as The Putnam Management Company, Inc.), the Fund's
Manager, a wholly-owned subsidiary of Putnam Investments, Inc.
(formerly known as The Putnam Companies, 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: 0.6% of the first $500 million of
average net assets, 0.5% of the next $500 million, 0.45% of the
next $500 million and 0.4% of any amount over $1.5 billion,
subject to reduction in any year to the extent 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 year ended November 30, 1993, the Fund paid
$38,655 for these services.
Trustees of the Fund receive an annual Trustee's fee of $3,080
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 are being provided to the Fund 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 year
ended November 30, 1993 amounted to $1,680,720.
Investor servicing and custodian fees reported in the Statement
of operations for the year ended November 30, 1993, have been
reduced by credits allowed by PFTC.
The Fund has adopted a distribution plan with respect to its
class A shares (the "Class A Plan") pursuant to Rule 12b-1 under
the Investment Company Act of 1940. The purpose of class A Plan
is to compensate Putnam Mutual Funds Corp. (formerly known as
Putnam Financial Services, Inc.), 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 0.20% of the Fund's average net assets
attributable to class A shares. For the year ended November 30,
1993, the Fund paid Putnam Mutual Funds Corp. distribution fees
of $4,027,835 for class A shares.
During the year ended November 30, 1993, Putnam Mutual Funds
Corp., acting as an underwriter, received net commissions of
$634,632 from the sale of class A shares of the Fund.
A deferred sales charge of up to 1% is assessed on certain
redemptions of class A shares purchased as part of an investment
of $1 million or more. For the year ended November 30, 1993,
Putnam Mutual Funds Corp., acting as underwriter, received $4,188
on such redemptions.
<PAGE>
The Fund has adopted a separate distribution plan with respect to
its class B shares (the "Class B Plan") pursuant to Rule 12b-1
under the Investment Company Act of 1940. The purpose of the
Class B Plan is to compensate Putnam Mutual Funds Corp. for
services provided and expenses incurred by it in distributing
class B shares. The Class B Plan provides for payments by the
Fund to Putnam Mutual Funds Corp. at an annual rate of up to
1.00% of the funds average net assets attributable to class B
shares. Currently, the trustees have limited payments by the Fund
to .85% of such net assets. For the period January 4, 1993
(commencement of operations) to November 30, 1993, the Fund
incurred fees of $601,037 for class B shares.
Putnam Mutual Funds Corp. also receives the proceeds of
contingent deferred sales charges levied on class B share
redemptions within six years of purchase. The charge is based on
declining rates, which begin at 5.0% of the net asset value of
the redeemed shares. Putnam Mutual Funds Corp. received
contingent deferred sales charges of $152,891 from such
redemptions for the period January 4, 1993 (commencement of
operations) to November 30, 1993.
Note 3
Purchases
and sales of
securities
During the year ended November 30, 1993, purchases and sales of
investment securities other than short-term investments
aggregated $1,036,141,223 and $687,797,304, respectively. In
determining the net gain or loss on securities sold, the cost of
securities has been determined on the identified cost basis.
Transactions in U.S. Treasury Bond futures contracts during the
year are summarized as follows:
Sales of Futures Contracts
Number of Aggregate
Contracts Face Value
Contracts opened 9,275 $ 1,028,841,268
Contracts closed (9,275) (1,028,841,268)
Contracts open at end of year -- $ --
<PAGE>
<TABLE>
<CAPTION>
Note 4
Capital shares
At November 30, 1993, there was an unlimited number of shares of beneficial interest
authorized divided into two classes, designated class A and class B capital stock.
Transactions in capital shares were as follows:
Year ended November 30
1993 1992
Class A Shares Amount Shares Amount
<S> <C> <C> <C> <C>
Shares sold 50,423,746 $467,973,918 56,014,571 $493,793,397
Shares issued in connection with
reinvestment of distributions 10,120,185 93,395,071 8,716,100 76,961,623
60,543,931 561,368,989 64,730,671 570,755,020
Shares repurchased (35,707,681) (332,870,429) (36,072,825) (318,475,274)
Net increase 24,836,250 $228,498,560 28,657,846 $252,279,746
January 4
(commencement
of operations) to
November 30
1993
Class B Shares Amount
Shares sold 16,174,744 $150,893,935
Shares issued in connection with
reinvestment of distributions 240,160 2,260,582
16,414,904 153,154,517
Shares repurchased (761,144) (7,156,490)
Net increase 15,653,760 $145,998,027
/TABLE
<PAGE>
Fund
performance
supplement
Putnam New York Tax Exempt Income Fund is a portfolio managed for
high current income free from federal, New York State and New
York City income taxes, consistent with capital preservation.
This fund invests at least 75% of its portfolio in
investment-grade tax-exempt bonds. The balance may be invested in
securities rated below investment grade.
The Lehman Brothers Municipal Bond Index is an unmanaged list of
approximately 8,000 investment-grade, fixed rate, long-term
maturity tax-exempt bonds, which are selected to be
representative of the market in terms of price movement and
sector distribution. The average quality of bonds held in the
index may differ from the average quality of those bonds in which
the fund invests. The index does not include bonds in certain of
the lower rating classifications in which the fund may invest.
The index does not take into account brokerage commissions or
other costs and may pose different risks from the fund. Total
return performance for the index reflects mathematically derived
changes of market price and reinvestment of interest payments, as
computed by Lehman Brothers. The fund's portfolio contains
securities that do not match those in the index.
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.
The Lipper New York Municipal Bond Funds Average is limited to
funds whose assets are exempt from taxation by the State of New
York. The average was derived from a group of 6 funds at the
beginning of the period, in December, 1983 and 52 funds at the
end of the period, in November, 1993.
<PAGE>
Putnam
New York
Tax Exempt
Income Fund
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
Independent accountants
Coopers & Lybrand
(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.
AOW/A65-10015<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
John R. Verani
Vice President
Gary N. Coburn
Vice President
James E. Erickson
Vice President
David Eurkus
Vice President and Fund Manager
William N. Shiebler
Vice President
John D. Hughes
Vice President and Treasurer
Paul O'Neil
Vice President
Beverly Marcus
Clerk and Assistant Treasurer
Trustees
George Putnam, Chairman
William F. Pounds, Vice Chairman
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 New
York Tax Exempt Income 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.<PAGE>
- ------------------
Bulk Rate
U.S. Postage
Paid
Boston, MA
Permit No. 53749
- ------------------
PUTNAMINVESTMENTS
The Putnam Funds
One Post Office Square
Boston, Massachusetts 02109
<PAGE>
APPENDIX TO FORM N30D FILINGS TO DESCRIBE DIFFERENCES BETWEEN
PRINTED AND EDGAR-FILED TEXTS:
(1) Rule lines for tables are omitted.
(2) Boldface and italic typefaces are displayed in normal type.
(3) 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.
(4) Because the printed page breaks are not reflected, certain
tabular and columnar headings and symbols are displayed
differently in this filing.
(5) Bullet points and similar graphic signals are omitted.
(6) Page numbering is different.
