<PAGE>
Putnam
New York
Tax Exempt
Income Fund
ANNUAL REPORT
November 30, 1994
[LOGO OF PUTNAM APPEARS HERE]
<PAGE>
PERFORMANCE HIGHLIGHTS
The fund's tax-free current dividend rate of 6.21% at NAV at the end of the
fiscal year was comparable with a 11.16% taxable return for an investor taxed at
the maximum 44.36% combined federal and state tax rates.*
Performance should always be considered in light of a fund's investment
strategy. Putnam New York Tax Exempt Income Fund is designed for investors
seeking a high level of current income free from federal income tax consistent
with preservation of capital.
FISCAL 1994 RESULTS AT A GLANCE
<TABLE>
<CAPTION>
CLASS A CLASS B
TOTAL RETURN NAV POP NAV CDSC
<S> <C> <C> <C> <C>
12 months ended 11/30/94
(change in value during
period plus reinvested
distributions) (8.02)% (12.41)% (8.75)% (13.03)%
<CAPTION>
SHARE VALUE NAV POP NAV
<S> <C> <C> <C>
11/30/93 $ 9.38 $ 9.85 $ 9.37
11/30/94 8.05 8.45 8.02
<CAPTION>
CAPITAL GAINS/1/
LONG- SHORT-
DISTRIBUTIONS NO. INCOME TERM TOTAL
<S> <C> <C> <C> <C> <C>
Class A 12 $ 0.507566 $ 0.096 $ 0.015 $ 0.618566
Class B 12 0.459575 0.096 0.015 0.570575
<CAPTION>
CURRENT RETURN NAV POP NAV
<S> <C> <C> <C>
End of period
Current dividend rate/2/ 6.21% 5.92% 5.71%
Taxable equivalent/3/ (a) 11.16 10.64 10.26
Taxable equivalent/3/ (b) 11.73 11.18 10.78
Current 30-day SEC yield/4/ 6.29 5.99 5.64
Taxable equivalent/3/ (a) 11.30 10.77 10.14
Taxable equivalent/3/ (b) 11.88 11.31 10.65
</TABLE>
Performance data represent past results. For performance over longer periods,
see page 8. POP assumes 4.75% maximum sales charge. CDSC assumes 5% maximum
contingent deferred sales charge. /1/Capital gains are taxable for federal and,
in most cases, state tax purposes. For some investors, investment income may
also be subject to the federal Alternative Minimum Tax. Investment income may
be subject to state and local taxes. /2/Income portion of most recent
distribution, annualized and divided by NAV or POP at end of period. /3/Assumes
(a) the maximum combined state and federal tax rate of 44.36% or (b) the maximum
combined state and federal and city tax rates of 47.05%. Results for investors
subject to lower tax rates would not be as advantageous. /4/Based only on
investment income, calculated using SEC guidelines.
* Results for investors subject to lower tax rates would not be as advantageous.
For investors of the minimum combined rate of 18.40%, the taxable equivalent
yield is 7.61% at NAV.
2
<PAGE>
FROM THE CHAIRMAN
[PHOTO APPEARS HERE]
DEAR SHAREHOLDER:
AS WE BEGIN A NEW YEAR, MOST INVESTORS WON'T REGRET THE PASSING OF THE OLD.
SINCE LAST FEBRUARY, WHEN THE FEDERAL RESERVE BOARD BEGAN A SERIES OF INCREASES
IN INTEREST RATES, 1994 WAS MARKED BY SHARP CORRECTIONS FOLLOWED BY SMALL GAINS
AND EXTENDED UNCERTAINTY FOR VIRTUALLY ALL FINANCIAL MARKETS.
WELL IN ADVANCE OF THE FED'S FIRST INCREASE, FUND MANAGER DAVID EURKUS HAD
ADOPTED DEFENSIVE STRATEGIES DESIGNED TO REDUCE THE IMPACT OF RISING RATES ON
PUTNAM NEW YORK TAX EXEMPT INCOME FUND'S PORTFOLIO. WHILE DEFENSIVE STRATEGIES
PROVED RELATIVELY SUCCESSFUL, FUND PERFORMANCE GENERALLY EDGED INTO THE NEGATIVE
NUMBERS.
BONDS BORE THE BRUNT OF THE DOWNTURN AND TAX-FREE MUNICIPALS INCURRED THE
STEEPEST DECLINE. ALTHOUGH SHIFTS IN THE MARKET AS A WHOLE INEVITABLY AFFECT
YOUR FUND, PUTNAM MANAGEMENT'S PHILOSOPHY OF SELECTING SECURITIES ON AN ISSUE-
BY-ISSUE BASIS WITH A THOROUGH EXAMINATION OF EACH ISSUER'S CREDIT QUALITY
SHOULD CONTINUE TO HELP PROTECT YOUR FUND'S PORTFOLIO.
IN THE ACCOMPANYING REPORT, DAVE DISCUSSES THE FISCAL YEAR JUST ENDED AND
PROSPECTS IN THE CHALLENGING MONTHS AHEAD.
RESPECTFULLY YOURS,
/S/ GEORGE PUTNAM
GEORGE PUTNAM
CHAIRMAN OF THE TRUSTEES
JANUARY 18, 1995
3
<PAGE>
REPORT FROM THE FUND MANAGER
DAVID J. EURKUS
In 1994, the municipal bond market had more twists and turns than a country road
in the Adirondacks. Just recently, the financial problems of Orange County,
while directly impacting only one municipality in California, nevertheless
thwarted a short rally in the national municipal bond market. Throughout 1994,
the Federal Reserve Board has underscored its commitment to check inflation by
raising short-term interest rates six times. As a result, fixed-income
investments lost ground all year and proved to be a rather inhospitable place
for most investors.
While the overall performance of Putnam New York Tax Exempt Income Fund was
disappointing during the fiscal year ended November 30, 1994, your fund has
achieved its goal of providing attractive current income. The fund's class A 12-
month yield of 6.26% overshadowed the New York average of 5.87%, according to
Lipper Analytical Services.
In the long run, Putnam Management believes the fund is well positioned to take
advantage of what we believe will be a promising municipal bond market in fiscal
1995. Additionally, we believe the fund, over its 11-year history, has shown its
mettle. This past November, Morningstar, an independent rating agency, wrote:
"In the past, the fund's yield has contributed to some remarkable performances;
its 10-year returns rank within the group's top decile."
MANEUVERING THROUGH A VOLATILE MARKET
As interest rates rose this year, investors left no-load tax-exempt mutual funds
in droves, thus forcing many portfolio managers to sell securities and raise
cash to meet redemptions. Your fund was not significantly affected by
redemptions, but the value of its portfolio was affected by the resulting market
sell-off.
Compounding this problem, in the fall of 1994 many large tax-exempt bond funds
started making fiscal-year-end portfolio
4
<PAGE>
adjustments for tax purposes. Municipal bonds, as a result, began selling at
large discounts to taxable bonds. This sell-off created yet another disruption
in the battered municipal bond market.
On the other hand, investors should keep in mind that when bond prices fall,
their yields rise proportionately. Therefore, we are currently evaluating a
broad spectrum of attractively priced issues in New York. Furthermore, we
believe the municipal bond market is either approaching bottom or has already
passed it. As of the last day of your fund's fiscal year, municipal bond yields
were particularly attractive relative to Treasuries (see chart). As the market
recovers over the next fiscal year, which we expect it will, your fund should be
among the beneficiaries.
A LONG-TERM STRATEGY
At the end of the fiscal year, the average maturity of the bonds in your fund's
portfolio was 23 years, nearly five years longer than that of the average New
York municipal bond fund, according to Morningstar. While this made the
portfolio more volatile in last year's rising-rate environment, the fund's
longer-term higher-yielding bonds have helped it maintain a very attractive
yield.
[GRAPH APPEARS HERE]
5
<PAGE>
In addition to their price appreciation and yield benefits, these bonds -- whose
stated yields are higher than prevailing interest rates -- can help reduce a
portfolio's volatility because their higher yields tend to make their prices
less sensitive to rising rates. Of course, their additional income is also a
welcome contribution.
The average maturity of the fund's holdings should not, however, be confused
with the fund's average duration. Duration is a measure of price sensitivity of
a bond or bond fund to a given change in interest rates. As of November 30, your
fund's duration was approximately 9.2 years. This is slightly higher than the
average New York municipal bond fund's duration of 8.6 years, according to
Lipper Analytical Services.
POSITIVE OUTLOOK IN THE EMPIRE STATE
One positive event for New York tax-exempt investors in 1994 has been the
emergence of a favorable supply/demand imbalance. Nationally, the pace of
refinancing has fallen off dramatically -- a drop of 44% in new issue volume.
The same holds true for New York, where issuance is down 40% and is expected to
remain at low levels for the foreseeable future. In addition, should Governor
Pataki continue the Cuomo administration's push to streamline New York's debt
issuance practices, this may create a further pinch on supply. On the other
hand, we believe demand will increase because of redemptions of high-coupon
bonds which have been refunded or may be callable in 1995.
The fund's largest holdings are in sectors likely to benefit from the Empire
State's expanding economy. We continue to find value in the debt of New York
City and its agencies well as in the state's transportation, utility, and higher
education systems. We also find value in the debt of New York's health care
sector, which includes some of the nation's pre-eminent institutions. We also
believe state agencies, such as the Port Authority of New York and New Jersey,
will continue to experience revenue growth as import/export activity expands in
the nation's premier economic center.
POSITIONED WELL FOR A MARKET RECOVERY
As federal tax rates rise, the case for investing in municipal bonds becomes
stronger --especially in high-tax states such as New York.
6
<PAGE>
[GRAPH APPEARS HERE]
As more investors recognize this tax-saving potential, any increase in demand
should result in price appreciation.
New York has a broad and diversified economy, and your fund has sought to take
advantage of this. We believe the fund's portfolio is positioned to take full
advantage of any municipal bond market turnaround that might occur in 1995, both
in terms of maturity and sector allocation.
As the fund enters a new fiscal year, we will continue to monitor political and
economic developments for any changes that might affect the fund's holdings. We
will also use Putnam Management's strong credit research and analytical
capabilities to pinpoint securities that offer we believe the best combinations
of current income and appreciation potential.
The view expressed about the securities mentioned in this report are exclusively
those of Putnam Management and are not meant as investment advice. Although the
described holdings were viewed favorably as of November 30, 1994, there is no
guarantee the fund will continue to hold these securities in the future.
7
<PAGE>
PERFORMANCE SUMMARY
This section provides, at a glance, information about your fund's performance.
Total return shows how the value of the fund's shares changed over time,
assuming you held the shares through the entire period and reinvested all
distributions back into the fund. We show total return in two ways: on a
cumulative long-term basis and on average how the fund might have grown each
year over varying periods. For comparative purposes, we show how the fund
performed relative to appropriate indexes and benchmarks.
TOTAL RETURN FOR PERIODS ENDED 11/30/94
<TABLE>
<CAPTION>
Lehman Bros.
Class A Class B Municipal
NAV POP NAV CDSC Bond Index CPI
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1 year (8.02)% (12.41)% (8.75)% (13.03)% (5.25)% 2.68%
- -----------------------------------------------------------------------------------------------------------------
5 years 33.74 27.37 -- -- 37.52 18.90
Annual average 5.99 4.96 -- -- 6.58 3.52
- -----------------------------------------------------------------------------------------------------------------
10 years 140.87 129.40 -- -- 146.53 42.17
Annual average 9.19 8.66 -- -- 9.44 3.58
- -----------------------------------------------------------------------------------------------------------------
Life of class B -- -- (0.31) (3.89) 4.19 5.50
Annual average -- -- (0.16) (2.06) 2.17 2.84
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
TOTAL RETURN FOR PERIODS ENDED 12/31/94
(MOST RECENT CALENDAR QUARTER)
<TABLE>
<CAPTION>
Class A Class B
NAV POP NAV CDSC
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 year (7.39)% (11.78)% (8.02)% (12.39)%
- ------------------------------------------------------------------------------------
5 years 37.10 30.55 -- --
Annual average 6.51 5.48 -- --
- ------------------------------------------------------------------------------------
10 years 143.42 131.80 -- --
Annual average 9.30 8.77 -- --
- ------------------------------------------------------------------------------------
Life of class B -- -- 2.89 (0.79)
Annual average -- -- 1.44 (0.40)
- ------------------------------------------------------------------------------------
</TABLE>
Fund performance data do not take into account any adjustment for taxes payable
on reinvested distributions or, for class A shares, distribution fees prior to
implementation of the class A distribution plan in 1990. The fund began
operations on 9/2/83 offering shares now known as class A. Effective 1/4/93, the
fund began offering class B shares. Performance data represent past results and
will differ for each share class. Investment returns and principal value will
fluctuate so an investor's shares, when sold, may be worth more or less than
their original cost.
8
<PAGE>
[GRAPH APPEARS HERE]
TERMS AND DEFINITIONS
CLASS A SHARES are generally subject to an initial sales charge.
CLASS B SHARES may be subject to a sales charge upon redemption.
NET ASSET VALUE (NAV) is the value of all your fund's assets, minus any
liabilities, divided by the number of outstanding shares, not including any
initial or contingent deferred 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. POP performance figures
shown here assume the maximum 4.75% sales charge.
CONTINGENT DEFERRED SALES CHARGE (CDSC) is a charge applied at the time of the
redemption of class B shares and assumes redemption at the end of the period.
Your fund's CDSC declines from a 5% maximum during the first year to 1% during
the sixth year. After the sixth year, the CDSC no longer applies.
COMPARATIVE BENCHMARKS
BOND BUYER MUNICIPAL BOND INDEX is an unmanaged list of tax-exempt bonds that is
frequently used a general gauge of the municipal bond market.
LEHMAN BROTHERS LONG-TERM TREASURY BOND INDEX is an unmanaged list of publicly
issued U.S. Treasury obligations with maturities of 10 years or more that is
representative of the Treasury bond market.
LEHMAN BROTHERS MUNICIPAL BOND INDEX is an unmanaged list of long-term fixed-
rate investment-grade tax-exempt bonds representative of the municipal bond
market.
CONSUMER PRICE INDEX (CPI) is a commonly used measure of inflation; it does not
represent an investment return.
The indexes do not take into account brokerage commissions or other costs, may
include bonds different from those in the fund, and may pose different risks
than the fund.
9
<PAGE>
LIFE-CYCLE INVESTING
As we move through life, our investment needs change. As these needs change, so
does the way we allocate our assets. Here are some basic rules for setting up
and maintaining an investment program and some examples of how assets might be
allocated.
DETERMINE YOUR INVESTMENT OBJECTIVES.
Objectives may include a new home, college education expenses, or retirement.
EVALUATE YOUR RISK TOLERANCE.
Generally, risk tolerance is higher for younger investors with longer timelines
and lower for older investors who may depend on their investment for current
income.
ALLOCATE YOUR INVESTABLE SAVINGS.
Your investment advisor will help you determine how much of your investable
dollars should be allocated to each investment category.
CHOOSE THE APPROPRIATE FUNDS.
Using Putnam's free exchange privilege, you can adjust your own Putnam portfolio
of funds as your financial needs change -- without a service fee.*
Look at the facing page for some ways you can allocate your assets, then turn
the page to see how the Putnam Fund Selector can help you make your choices.
*Putnam reserves the right to change or terminate the exchange privilege. In
some cases, a sales charge may apply. See prospectus for details.
10
<PAGE>
FOUR WAYS TO ALLOCATE ASSETS
- --------------------------------------------------------------------------------
SEEKING MAXIMUM GROWTH
30% - 40% Growth and income
RISK TOLERANCE: 40% - 50% Growth [PIE CHART APPEARS HERE]
Generally 5% - 20% Income or
investors with tax-free income
a higher risk
tolerance
(often in their
20s and early
30s)
- --------------------------------------------------------------------------------
SEEKING GROWTH AND SOME INCOME
40% - 50% Growth and income
RISK TOLERANCE: 30% - 40% Growth [PIE CHART APPEARS HERE]
Generally 10% - 30% Income or
investors with tax-free income
a higher risk
tolerance
(often in their
20s and early
30s)
- --------------------------------------------------------------------------------
SEEKING INCOME AND SOME GROWTH WITH PROTECTION AGAINST INFLATION
30% - 40% Growth and income
RISK TOLERANCE: 10% - 20% Growth [PIE CHART APPEARS HERE]
Generally 25% - 60% Income or
investors with tax-free income
a higher risk
tolerance
(often in their
20s and early
30s)
- --------------------------------------------------------------------------------
SEEKING HIGH CURRENT INCOME AND PROTECTION AGAINST INFLATION
20% - 30% Growth and income
RISK TOLERANCE: 5% - 10% Growth [PIE CHART APPEARS HERE]
Generally 40% - 70% Income or
investors with tax-free income
a higher risk
tolerance
(often in their
20s and early
30s)
11
<PAGE>
PUTNAM GROWTH FUNDS
Asia Pacific Growth Fund
Capital Appreciation Fund
Diversified Equity Trust
Europe Growth Fund
Global Growth Fund
Health Sciences Trust
Investors Fund
Natural Resources Fund*
New Opportunities Fund
OTC Emerging Growth Fund
Overseas Growth Fund
Vista Fund
Voyager Fund
PUTNAM GROWTH AND INCOME FUNDS
Convertible Income-Growth Trust
Dividend Growth Fund
Equity Income Fund
The George Putnam Fund of Boston
The Putnam Fund for Growth and Income
Managed Income Trust
Utilities Growth and Income Fund
PUTNAM INCOME FUNDS
Adjustable Rate U.S. Government Fund
American Government Income Fund
Balanced Government Fund
Corporate Asset Trust
Diversified Income Trust
Federal Income Trust
Global Governmental Income Trust
High Yield Advantage Fund
High Yield Trust
Income Fund
U.S. Government Income Trust
PUTNAM TAX-FREE FUNDS
Intermediate Tax Exempt Fund
Municipal Income Fund
Tax Exempt Income Fund
Tax-Free High Yield Fund
Tax-Free Insured Fund
State tax-free income funds+
Arizona, California, Florida, Massachusetts, Michigan, Minnesota,
New Jersey, New York, Ohio, and Pennsylvania
LIFESTAGE(SM) FUNDS
Putnam Asset Allocation Funds -- three investment portfolios that
spread your money across a variety of stocks, bonds, and money market
investments to help maximize your return and reduce your risk.
The three portfolios:
Putnam Asset Allocation: Balanced Portfolio
Putnam Asset Allocation: Conservative Portfolio
Putnam Asset Allocation: Growth Portfolio
MOST CONSERVATIVE INVESTMENTS+++
Putnam money market funds:
Money Market Fund**
Tax Exempt Money Market Fund
California Tax Exempt Money Market Fund
New York Tax Exempt Money Market Fund
CDs and savings accounts(S)
* Formerly Energy-Resources Trust.
++ Formerly Daily Dividend Trust.
+ Not available in all states.
+++ Relative to above.
** Formerly Daily Dividend Trust.
(S) Not offered by Putnam Investments. Certificates of deposit offer
a fixed rate of return and may be insured, up to certain limits, by
federal/state agencies. Savings accounts may also be insured up to
certain limits.
Please call your financial advisor or Putnam to obtain a prospectus for
any Putnam fund. It contains more complete information, including charges
and expenses. Read it carefully before you invest or send money.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
For the Year Ended November 30, 1994
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, 1994, 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 periods
indicated therein. 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 audits 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, 1994 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, 1994, 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 periods indicated therein, in conformity with generally accepted
accounting principles.
Coopers & Lybrand L.L.P.
Boston, Massachusetts
January 12, 1995
13
<PAGE>
PORTFOLIO OF INVESTMENTS OWNED
November 30, 1994
<TABLE>
<CAPTION>
MUNICIPAL BONDS AND NOTES (98.1%)(a)
PRINCIPAL AMOUNT RATINGS(b) VALUE
NEW YORK (94.1%)
- ------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
34th Street Partnership Inc. Rev. Bonds
(34th Street Business Impt.),
$ 5,300,000 5 1/2s, 1/1/23 A $ 4,279,750
2,000,000 5 1/2s, 1/1/14 A 1,680,000
Albany, Indl. Dev. Agcy. Rev. Bonds
(Mental Hlth. & Retardation Ctr.),
1,215,000 Ser. B, 7.9s, 6/1/07 A 1,289,419
1,010,000 Ser. A, 7.9s, 12/1/06 A 1,071,863
5,000,000 Albany, Parking Auth. Rev. Bonds
(Green & Hudson St. Garage), Ser. A,
7.15s, 9/15/16 A 4,893,750
3,000,000 Babylon, Indl. Dev. Agcy. Resource Recvy.
Rev. Bonds (Ogden Martin Syst.), Ser. B,
8 1/2s, 1/1/19 Baa 3,195,000
Battery Park, City Auth. Rev. Bonds
14,500,000 7.7s, 5/1/15 AAA 15,805,000
350,000 Ser. A, 5.7s, 11/1/20 AA 292,250
29,125,000 Ser. A, 5 1/4s, 11/1/17 AA 22,571,856
20,645,000 Ser. A, 5s, 11/1/13 AA 15,948,263
5,705,000 Ser. A, 5s, 11/1/08 AA 4,792,200
Erie Cnty., General Obligation (G.O.) Bonds
1,700,000 Ser. B, 9 1/2s, 12/15/00 BBB 1,831,750
1,000,000 Ser. A, 9 1/2s, 2/1/00 BBB 1,037,500
1,700,000 Ser. B, 9 1/2s, 12/15/99 BBB 1,831,750
1,600,000 Ser. A, 9 1/2s, 2/1/99 BBB 1,660,000
2,000,000 Ser. A, 9.4s, 2/1/98 BBB 2,075,000
2,800,000 Ser. A, 9.3s, 2/1/97 BBB 2,905,000
4,750,000 Grand Central Dist. Mgmt. Assn. Inc.
5 1/4s, 1/1/22 A 3,615,938
Greece, Central School Dist. Rev. Bonds,
Financial Guaranty Insurance Company (FGIC), 6s,
950,000 6s, 6/15/15 AAA 852,625
950,000 6s, 6/15/14 AAA 859,750
950,000 6s, 6/15/13 AAA 862,125
950,000 6s, 6/15/12 AAA 869,250
950,000 6s, 6/15/11 AAA 876,375
950,000 6s, 6/15/10 AAA 883,500
Jamesville-Dewit Central School Dist. Rev.
Bonds American Municipal Bond Assurance
Corporation (AMBAC)
675,000 5 3/4s, 6/15/10 AAA 608,344
675,000 5 3/4s, 6/15/09 AAA 613,406
5,000,000 Metro Trans. Auth. Residual Interest Bonds (RIBS)
Ser 1993B, AMBAC, 6.511s, 7/1/08
(acquired 6/30/93, cost $5,158,013)(c) AAA 4,168,750
4,000,000 Metro Trans. Auth. Rev. Bonds
(Commuter Fac.) Ser. A, Municipal Bond
Insurance Association (MBIA), 5 1/2s, 7/1/17 AAA 3,330,000
</TABLE>
14
<PAGE>
<TABLE>
<CAPTION>
MUNICIPAL BONDS AND NOTES
PRINCIPAL AMOUNT RATINGS(b) VALUE
NEW YORK (continued)
- ------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
Metro. Trans. Auth. Svcs. Contract Fac. Rev. Bonds
$ 3,290,000 (Trans. Fac.), Ser. 3, 7 1/2s, 7/1/16 AAA $ 3,602,550
3,750,000 (Trans. Fac.), Ser. 3, 7 3/8s, 7/1/08 Baa 3,857,813
12,585,000 (Trans. Fac.), Ser. 5, 7s, 7/1/12 Baa 12,160,256
3,000,000 (Trans. Fac.), Ser. 6, 7s, 7/1/09 Baa 2,947,500
5,600,000 (Commuter Fac.), Ser. P, 5 3/4s, 7/1/15 Baa 4,599,000
28,215,000 (Trans. Fac.), Ser. P, 5 3/4s, 7/1/15 Baa 23,171,569
10,400,000 (Trans. Fac.), Ser. 7, 5 5/8s, 7/1/16 Baa 8,346,000
16,995,000 (Trans. Fac), Ser. O, 5 1/2s, 7/1/17 Baa 13,362,319
8,000,000 (Commuter Fac.), Ser. O, 5 1/2s, 7/1/17 Baa 6,290,000
1,575,000 (Commuter Fac.), Ser. 7, 4 3/4s, 7/1/19 Baa 1,088,719
3,500,000 (Trans. Fac.), Ser. 7, 4 3/4s, 7/1/19 Baa 2,415,000
Metro Trans. Auth. Transit Fac. Rev. Bonds
4,550,000 Ser. O, MBIA, 6s, 7/1/24 AAA 3,947,125
4,500,000 Ser. M, 6s, 7/1/14 Baa 3,937,500
1,305,000 Monroe Cnty., Rochester Pure Wtr. Dist. G.O.
Bonds 8.4s, 6/1/01 AA 1,393,088
2,400,000 Monroe Cnty., Wtr. Auth. Rev. Bonds
Ser.A, 6.25s, 8/1/11 AA 2,259,000
Muni. Assistance Corp. for the City of
NY Rev. Bonds
4,500,000 Ser. 61, 5 3/4s, 7/1/08 AA 4,218,750
11,795,000 Ser. 62, 5 1/2s, 7/1/08 AA 10,600,756
NY City G.O. Variable Rate Demand Notes (VRDN),
2,700,000 Ser. B, FGIC, 3.7s, 10/1/20 VMIG1 2,700,000
6,000,000 Subser. B5, MBIA, 3.4321s, 8/15/22 VMIG1 6,000,000
4,300,000 Subser. B2, MBIA 3.4s, 8/15/03 VMIG1 4,300,000
NY City, G.O. Bonds
11,200,000 Ser. D, Group B, 8 1/4s, 8/1/11 Baa 11,942,000
2,775,000 Ser. B, 8 1/4s, 6/1/07 A 3,045,563
12,325,000 Ser. B, 8 1/4s, 6/1/05 A 13,480,469
205,000 Rfdg. Ser. A, 8s, 8/15/19 A 213,969
20,195,000 Ser. A, 8s, 8/15/19 A 22,567,913
1,000,000 Ser. D, Group A, 8s, 8/1/07 A 1,066,250
10,000,000 Ser. D, Group A, 8s, 8/1/03 A 10,862,500
5,575,000 Ser. D, 7.65s, 2/1/08 A 5,770,125
3,455,000 Ser. E, 7.6s, 2/1/05 A 3,623,431
4,730,000 Ser. F, 7.6s, 2/1/05 A 4,936,938
27,000,000 Ser. B, 7 1/2s, 2/1/06 A 28,451,250
20,000,000 Ser. B, 7 1/2s, 2/1/02 A 21,125,000
5,000,000 Ser. A, 6 1/4s, 8/1/10 A 4,456,250
18,800,000 Ser. F, 3s, 11/15/00 A 16,003,500
5,000,000 Ser. F, MBIA, 3s, 11/15/00 AAA 4,262,500
10,000,000 NY City Hlth. & Hosp. Corp.
Ser. A, AMBAC, 5 3/4s, 2/15/22 AAA 8,437,500
NY City, Hsg. Dev. Corp. VRDN
820,000 (Carnegie Park), 4s 12/1/16 VMIG2 820,000
NY City, Hsg. Dev. Corp. Mtge. VRDN
3,300,000 (East 96th St. Project), Ser. A, 3.6s,
8/1/15 VMIG1 3,300,000
NY City, Hsg. Dev. Corp. Mtge. Rev. Bond
1,000,000 (Upper Fifth Ave. Project), Ser. A, 3.5s,
1/1/16 VMIG1 1,000,000
NY City, Indl. Dev. Agcy. Civic Fac. Rev.
Bonds
1,000,000 Ser. 1990, 7 5/8s, 7/1/10 AAA/P 1,012,500
9,100,000 (Rockefeller Fndtn. Project), 5 3/8s, 7/1/23 AAA 7,245,875
15,625,000 NY City Ind. Dev. Agcy. Special Fac. Rev. Bonds
(American Airlines Project), 6.9s, 8/1/24 Baa 14,140,625
</TABLE>
15
<PAGE>
<TABLE>
<CAPTION>
MUNICIPAL BONDS AND NOTES
PRINCIPAL AMOUNT RATINGS(b) VALUE
NEW YORK (continued)
- ------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
NY City, Muni. Fin. Auth. Wtr. & Swr. Sys. VRDN
$11,200,000 Ser. G, FGIC, 3.4s, 6/15/24 VMIG1 $11,200,000
13,500,000 Ser. C, FGIC, 3.4s, 6/15/23 VMIG1 13,500,000
13,000,000 NY City, Muni. Fin. Auth. Wtr. & Swr. Sys.
RIBS, FGIC, 10.618s, 6/15/11 (acquired 8/9/91;
cost $13,587,860)(c) AAA 14,706,250
NY City, Muni. Fin. Auth. Wtr & Swr Sys.
Rev. Bonds
5,000,000 Ser. A, 6 3/4s, 6/15/17 A 4,768,750
1,700,000 Ser. A, FGIC, 6 3/4s, 6/15/16 AAA 1,672,375
4,000,000 Ser. A, Financial Security Assurance
(FSA), 6s, 6/15/17 AAA 3,530,000
8,150,000 Ser. A, 6s, 6/15/17 A 7,039,563
11,425,000 Ser. F, MBIA, 5 1/2s, 6/15/23 AAA 9,197,125
11,090,000 Ser. B, 5 1/2s, 6/15/19 A 8,899,725
1,250,000 Ser. A, FSA, 5 1/2s, 6/15/11 AAA 1,079,688
2,000,000 Ser. A, MBIA, zero %, 6/15/03 AAA 1,210,000
8,835,000 Ser. A, MBIA, zero %, 6/15/02 AAA 5,709,619
NY Local Government Assist. Rev Bonds
4,400,000 Ser. B, 5 1/2s, 4/1/21 A 3,476,000
13,750,000 Ser. A, 5 1/4s, 4/1/19 A 10,553,125
NY State Dorm. Auth. RIBS
13,000,000 (Cornell U.), 10.362s, 7/1/30
(acquired 8/9/91, cost $13,315,900)(c) AA 13,536,250
NY State Dorm. Auth. Rev. Bonds
5,000,000 (NY Dept of Ed.), 7 3/4s, 7/1/21 Baa 5,287,500
9,000,000 (State U. Edl. Fac.), Ser. A, 7 5/8s, 5/15/05 Baa 9,843,750
10,500,000 (State U. Edl. Fac.), Ser. B, 7 1/2s, 5/15/11 Baa 10,775,625
18,800,000 (City U. Syst.), Ser. C, 7 1/2s, 7/1/10 Baa 19,364,000
500,000 (Wildwood School), 7.3s, 7/1/15 A 520,625
4,000,000 (State U. Athletic Fac.), 7 1/4s, 7/1/21 Baa 3,945,000
1,995,000 (State U. Edl. Fac.), Pre Rfd. 5/1/9 Ser. A,
7 1/4s, 5/15/18 Aaa 2,157,094
260,000 (State U. Edl. Fac.), Rfd. 8/1/93 Ser. A,
7 1/4s, 5/15/18 AAA 281,125
7,250,000 (City U. Syst.), Ser. A, 6 1/2s, 7/1/16 Baa 6,570,313
26,605,000 (City U. Syst.), Ser. A, 6 1/2s, 7/1/15 Baa 24,177,294
1,650,000 (City U. Syst.), Ser. A, 6 1/2s, 7/1/14 Baa 1,501,500
4,465,000 (U. of Rochester), 6 1/2s, 7/1/09 A 4,392,444
16,750,000 (State U. Edl. Fac.), Ser. A, 6s, 5/15/22 Baa 14,070,000
2,970,000 (State U. Edl. Fac.), Ser. B, 6s, 5/15/17 Baa 2,531,925
1,955,000 (U. of Rochester), MBIA, 5.9s, 7/1/17 AAA 1,683,744
22,790,000 (State U. Edl. Fac.), Ser. A, 5 7/8s, 5/15/17 Baa 18,830,238
7,515,000 (State U. Edl. Facs.), Ser. B, 5 3/4s, 5/15/24 Baa 5,974,425
21,810,000 (Construction City U. Syst.) 5 3/4s, 7/1/18 Baa 17,666,100
1,000,000 (Columbia U.), 5 3/4s, 7/1/15 Aaa 880,000
10,000,000 (U. Rochester) MBIA, 5 3/4s, 7/1/14 AAA 8,587,500
6,975,000 (Construction City U. Syst.), 2nd Gen., Ser. A,
5 3/4s, 7/1/13 Baa 5,780,531
11,615,000 (Upstate Cmnty. Colleges), Ser. A, 5.7s, 7/1/21 Baa 9,219,406
1,250,000 (Colgate U.), FGIC, 5 5/8s, 7/1/23 AAA 1,018,750
4,000,000 (Upstate Cmnty. Colleges), Ser. A, 5 5/8s, 7/1/14 Baa 3,240,000
20,825,000 (U. Rochester), Mem. Hosp., MBIA, 5 1/2s, 7/1/21 AAA 16,660,000
31,505,000 (State U. Edl. Fac.), Ser. B, 5 1/4s, 5/15/19 Baa 23,628,750
35,500,000 (State U. Edl. Fac.), Ser. A, 5 1/4s, 5/15/15 Baa 27,379,375
</TABLE>
16
<PAGE>
<TABLE>
<CAPTION>
MUNICIPAL BONDS AND NOTES
PRINCIPAL AMOUNT RATINGS(b) VALUE
NEW YORK (continued)
- ------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
$ 3,500,000 (State U. Edl. Fac.), Ser. B, 5 1/4s, 5/15/13 Baa $ 2,721,250
17,025,000 (Mt. Sinai Medical School), Ser. A, MBIA,
5s, 7/1/21 AAA 12,704,906
16,500,000 (City U.), Ser. F, 5s, 7/1/20 Baa 11,715,000
27,990,000 (State U. Edl. Fac.), Ser. B, 5s, 5/15/18 Baa 20,397,713
11,000,000 (City U. Syst.), Ser. C, 5s, 7/1/17 Baa 8,057,500
4,020,000 (Columbia U.), 5s, 7/1/15 Aaa 3,210,975
15,985,000 (Cornell U.), 5s, 7/1/15 AA 12,768,019
4,750,000 (Columbia U.), Ser. A, 4 3/4s, 7/1/14 AA 3,639,688
23,864,000 (State U. Edl. Fac.), Ser. B, zero %, 5/15/10 Baa 7,785,630
48,000,000 (State U. Edl. Fac.), Ser. B, zero %, 5/15/09 Baa 17,580,000
54,520,000 (State U. Edl. Fac.), Ser. B, zero %, 5/15/08 Baa 20,853,900
10,000,000 (State U. Edl. Fac.), Ser. B, zero %, 5/15/07 Baa 4,162,500
10,580,000 (State U. Edl. Fac.), Ser. B, zero %, 5/15/06 Baa 4,774,225
2,000,000 (State U. Edl. Facs.), Ser. A, 5 1/2s, 5/15/13 Baa 1,615,000
NY State Energy Research & Dev. Auth. Gas
Fac. RIBS
10,000,000 (Brooklyn Union Gas Co.), Ser. B, 9.421s, 7/1/26 A 9,150,000
NY State Energy Research & Dev. Auth.
Gas Fac. Rev. Bonds
8,100,000 (Brooklyn Union Gas Co. Project), Ser. A, 9s,
5/15/15 A 8,373,375
8,000,000 (Brooklyn Union Gas Co.), Ser. 1, 7 1/8s, 12/1/20 A 7,980,000
5,000,000 NY State Energy Research & Dev. Auth. Poll.
Control Rev. Bonds (Orange and Rockland
Util. Project), 9s, 8/1/15(d) A 5,206,250
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 9,044,475
4,480,000 (State Wtr. Revolving Fund), Ser. E, 6 7/8s,
6/15/10 Aa 4,519,200
6,870,000 (State Wtr. Revolving Fund), Ser. B, 6.65s,
9/15/13 AA 6,724,013
5,265,000 (State Wtr. Revolving Fund), Ser. A, 6.55s,
9/15/10 AAA 5,238,675
10,500,000 (State Wtr. Revolving Fund), Ser. E, 6 1/2s,
6/15/14 AA 9,948,750
1,000,000 (State Wtr. Revolving Fund, Pooled Loan),
Ser. B, 5.2s, 5/15/14 AAA 815,000
2,670,000 (State Wtr. Revolving Fund), Ser. B, 5.1s,
5/15/10 AAA 2,216,100
2,780,000 NY State G.O. Bonds
5.2s, 3/15/10 A 2,335,200
NY State Hsg. Corp. Rev Bonds
1,225,000 5 1/2s, 11/1/20 AA 987,656
9,000,000 5s, 11/1/18 AA 6,795,000
13,135,000 5s, 11/1/13 AA 10,343,813
16,750,000 Ser. A, zero %, 11/1/10 A 9,694,063
NY State Hsg. Fin. Agcy. Rev. Bonds
28,000,000 Ser. A, 8s, 11/1/08 Baa 30,240,000
9,440,000 (Multi-Fam. Hsg. Insd. Mtge. Program), Ser. A,
7s, 8/15/22 AA 9,027,000
1,050,000 (Multi-Fam. Mtge. Hsg. Insd. Mtge. Program),
Ser. A, 6.95s, 8/15/12 AA 1,021,125
2,750,000 (Multi-Fam. Mtge. Hsg.), Ser. C, Federal Housing
Administration (FHA) Insd., 6 1/2s, 8/15/24 AAA 2,413,125
1,000,000 (Multi-Fam. Mtge. Hsg.), Ser. C, FHA Insd.,
6.45s, 8/15/14 AAA 896,250
1,455,000 (Multi-Fam. Hsg. Secd. Mtge. Program), Ser. D,
6.2s, 8/15/12 Aa 1,324,050
NY State Hsg. Fin. Agcy. Svcs. Contract
Oblig. Rev. Bonds
7,500,000 Ser. C, 7.3s, 3/15/21 AAA 8,175,000
1,000,000 Ser. C, 7.3s, 9/15/12 Baa 1,001,250
1,500,000 Ser. A, 7 1/4s, 9/15/12 Baa 1,494,375
</TABLE>
17
<PAGE>
<TABLE>
<CAPTION>
MUNICIPAL BONDS AND NOTES
PRINCIPAL AMOUNT RATINGS(b) VALUE
NEW YORK (continued)
- ------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
$18,760,000 Ser. C, 6 1/8s, 3/15/20 Baa $15,899,100
16,335,000 Ser. C, 5 7/8s, 9/15/14 Baa 13,803,075
14,000,000 Ser. A, 5 1/2s, 9/15/22 Baa 10,780,000
15,500,000 Ser. D, 5 3/8s, 3/15/23 Baa 11,625,000
NY State Loc. Govt. Assistance Corp. Rev. Bonds
5,000,000 Ser. A, 7 1/4s, 4/1/18 AAA 5,418,750
14,450,000 Ser. A, 6 1/2s, 4/1/20 A 13,366,250
17,605,000 Ser. B, 5 3/8s, 4/1/16 A 14,039,988
35,415,000 Ser. E, 5 1/4s, 4/1/16 A 27,756,506
3,900,000 Ser. D, 5s, 4/1/23 A 2,847,000
15,000,000 Ser. C, 5s, 4/1/21 A 11,118,750
3,600,000 NY State Loc. Govt. Assistance Corp. VRDN
3.4s, 4/1/23 VMIG1 3,600,000
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 $22,955,243; $3,300,000
par acquired 4/8/92, cost $3,546,169) 10.428s,
2/15/24(c) AAA 25,194,000
NY State Med. Care Fac. Fin. Agcy. Rev. Bonds
5,450,000 (Nursing Home Insd. Mtge.), Ser. B, FHA Insd.,
10 1/2s, 1/15/24 A 5,484,063
990,000 (Hosp. & Nursing Home Insd. Mtge.), Ser. B, FHA
Insd., 9 1/8s, 2/15/25 AA 1,015,988
4,000,000 (Hosp. & Nursing Home Insd. Mtge.), Ser. C, FHA
Insd., 9s, 2/15/26 A 4,100,000
335,000 (Hosp. & Nursing Home Insd. Mtge.), Ser. B, FHA
Insd., 8 7/8s, 8/15/27 AA 357,613
2,780,000 (Mental Hlth. Svcs. Facs.), Ser. A, 8 7/8s,
8/15/07 A 3,026,725
3,230,000 (Mental Hlth. Svcs. Fac.), Ser. A, 8 7/8s, 8/15/07 AAA 3,569,150
12,730,000 (Hosp. & Nursing Home), Ser. B, FHA Insd.,
8s, 2/15/28 AAA 13,477,888
8,750,000 (Hosp. & Nursing Home Insd. Mtge.), Ser. A,
FHA Insd., 8s, 2/15/27 Aa 9,198,438
5,805,000 (Mental Hlth. Svcs. Fac.), Ser. B, 7 7/8s, 8/15/20 A 6,087,994
7,985,000 (Mental Hlth. Svcs. Fac.), Rfdg. Ser. B, 7 7/8s,
8/15/20 AAA 8,893,294
7,275,000 (Mental Hlth. Svcs. Fac.), Ser. A, 7.8s, 2/15/19 AAA 7,493,250
22,525,000 (Presbyterian Hosp.), Ser. A, FHA Insd., 7.7s,
2/15/25 AA 24,777,500
5,000,000 (Buffalo Gen. Hosp.), Ser. C, FHA Insd., 7.7s,
2/15/22 AAA 5,450,000
6,180,000 (Mental Hlth. Svcs. Fac.), Ser. B, 7 5/8s, 8/15/17 A 6,342,225
24,775,000 (Mental Hlth. Svcs. Fac.), Ser. A, 7 1/2s, 2/15/21 AAA 27,159,594
18,500,000 (St. Luke's Hosp.), Ser. B, FHA Insd., 7.45s,
2/15/29 AAA 20,118,750
590,000 (Mental Hlth. Svcs. Fac.), Ser. C, 7.3s, 2/15/21 A 586,313
1,785,000 (Mental Hlth. Svcs. Fac.), Ser. Rfdg. C, 7.3s,
2/15/21 AAA 1,945,650
1,205,000 (Hosp. & Nursing Home), Ser. B, FHA Insd.,
7s, 8/15/32 AA 1,143,244
3,000,000 (Hosp. & Nursing Home), Ser. A, FHA Insd.,
6 7/8s, 2/15/32 AA 2,801,250
6,625,000 (Methodist Hosp. & Nursing Home), Ser. A, FHA
Insd., 6.7s, 8/15/23 AA 6,061,875
1,200,000 (Hosp. & Nursing Home), Ser. C, 6.55s, 8/15/12 Aa 1,126,500
1,250,000 (Aurelia Osborn Fox Hosp.), Ser. A, 6 1/2s,
11/1/19 AAA 1,181,250
2,000,000 (Longterm Hlth. Care), Ser. C, Capital Guaranty
Insurance Company, (CGIC), 6.4s, 11/1/14 AAA 1,880,000
21,145,000 (Hosp. & Nursing Home Insd. Mtge.), Ser. C,
FHA Insd., 6 3/8s, 8/15/29 AAA 18,237,563
5,000,000 (Secured Hosp.), Ser. A, 6 1/4s, 2/15/24 Baa 4,100,000
</TABLE>
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<TABLE>
<CAPTION>
MUNICIPAL BONDS AND NOTES
PRINCIPAL AMOUNT RATINGS(b) VALUE
NEW YORK (continued)
- ------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
$ 2,000,000 (Central Suffolk Cnty. Hosp. Project), Ser. A,
6 1/8s, 11/1/16 BBB $ 1,625,000
37,860,000 Ser. A, FHA Insd., 5.9s, 8/15/33 AA 30,429,975
5,500,000 (Mental Hlth. Svcs. Fac.), Ser A, AMBAC,
5.8s, 8/15/22 AAA 4,578,750
8,140,000 (St. Lukes-Roosevelt Project), Ser. A, FHA Insd.,
5 5/8s, 8/15/18 AAA 6,623,925
6,850,000 (Hosp. & Nursing Home), Ser. C, FHA Insd.,
5 3/4s, 8/15/19 AAA 5,488,563
24,570,000 (St. Lukes Roosevelt Project), Ser. A, FHA Insd.,
5.7s, 2/15/29 AAA 19,379,588
5,000,000 (Mental Hlth. Svcs. Fac.), Ser. A, AMBAC,
5.7s, 8/15/14 AAA 4,300,000
25,100,000 (Presbyterian Hosp.), Ser. A, 5 1/2s, 8/15/24 AAA 19,609,375
11,000,000 (Presbyterian Hosp.), Ser. A, 5 3/8s, 2/15/25 AAA 8,483,750
2,725,000 (Mental Hlth. Svcs. Fac. ), Ser. A, 5 1/4s,
8/15/23 Baa 1,992,656
4,785,000 (Mental Hlth. Svcs. Fac.), Ser. D, 5 1/4s,
8/15/23 Baa 3,510,994
6,000,000 (Mental Hlth. ), Ser. D, FGIC, 5 3/8s, 8/15/13 AAA 4,965,000
16,290,000 Ser. F, 5 1/4s, 2/15/19 AAA 12,665,475
1,900,000 NY State Med. Care Fac. Fin. Agcy. VRDN
(Lenox Hill Hosp.), Ser. A, 3.5s, 11/1/08 VMGI 1,900,000
NY State Mtg. Agcy. Rev. Bonds
3,015,000 (Homeownership Dev. Program),
Ser. BB-2, 7.95s, 10/1/15 Aa 3,112,988
4,995,000 (Homeownership Dev. Program),
Ser. QQ, 7.7s, 10/1/12 Aa 5,169,825
1,000,000 (Homeownership Dev. Program),
Ser. TT, 7 1/2s, 4/1/15 Aa 1,020,000
5,000,000 (Homeownership Dev. Program),
Ser. 27, 6.9s, 10/1/15 Aa 4,837,500
12,070,000 Ser. A, 6 7/8s, 4/1/17 Aa 11,300,538
5,000,000 5.65s, 4/1/15 Aa 4,175,000
4,800,000 (Homeowner Mtg.), Ser. 31-A,
MBIA, 5 3/8s, 10/1/17 AAA 3,888,000
2,500,000 5.4s, 10/1/17 Aa 1,984,375
43,340,000 (Single-Fam.) Ser. 2, zero %, 10/1/14 Aa 6,663,525
4,250,000 NY State Muni. Bond Bank Agcy.
Special Program Rev. Bonds, Ser. A 6 3/4s, 3/15/11 A 4,154,375
5,400,000 NY State Pwr. Auth. General Purpose Rev. Bonds
Ser. U, 5 3/4s, 1/1/18 AA 4,563,000
5,635,000 NY State Thruway Auth. Gen. Rev. Bonds
Ser. B, MBIA, 5s, 1/1/20 AAA 4,233,294
NY State Thruway Auth. Svc. Contract Rev. Bonds
(Local Hwy. & Bridge Project),
13,300,000 7 1/4s, 1/1/10 Baa 13,466,250
6,500,000 6 1/4s, 4/1/07 Baa 6,280,625
20,365,000 6s, 1/1/11 Baa 18,226,675
9,525,000 5 1/4s, 4/1/13 Baa 7,655,719
NY State Urban Dev. Corp. Rev. Bonds
9,000,000 (Onondaga Cnty. Convention Project),
7 7/8s, 1/1/20 Baa 9,315,000
23,250,000 (State Fac.), 7 1/2s, 4/1/20 Baa 23,308,125
33,250,000 (Correctional Fac.), Ser. 2, 7 1/2s, 1/1/18 AAA 36,408,750
8,000,000 (Correctional Fac.), Ser. A, 5 1/2s, 1/1/16 Baa 6,320,000
17,750,000 (Correctional Fac.), FSA, 5 1/2s, 1/1/15 Baa 14,089,063
24,185,000 (Correctional Fac.), Ser. A, 5 1/4s, 1/1/21 Baa 17,896,900
</TABLE>
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<TABLE>
<CAPTION>
MUNICIPAL BONDS AND NOTES
PRINCIPAL AMOUNT RATINGS(b) VALUE
NEW YORK (continued)
- ------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
$ 5,000,000 Niagara Falls, Bridge Comm. Toll. Rev. Bonds
Ser. B, FGIC, 5 1/4s, 10/1/21 AAA $ 3,931,250
Niagara, Frontier Trans. Auth. Arpt. Rev. Bonds
(Buffalo Intl. Airport), AMBAC,
6,000,000 Ser. A, 6 1/4s, 4/1/24 AAA 5,370,000
1,500,000 Ser. C, 6s, 4/1/24 AAA 1,314,375
1,000,000 North Cnty., Dev. Auth. Rev. Bonds
(Solid Waste Mgmt. Syst.), Ser. A, 6 3/4s, 7/1/12 Baa 958,750
Onondaga Cnty., G.O. Bonds
2,600,000 5.7s, 4/1/10 AA 2,369,250
2,600,000 5.7s, 4/1/08 AA 2,411,500
5,000,000 Onondaga Cnty., Indl. Dev. Agcy. Swr. Fac. Rev.
Bonds
(Bristol-Meyers Squibb Co. Project), 5 3/4s, 3/1/24 AAA 4,206,250
2,800,000 Ontario Cnty., Indl. Dev. Agcy. Res. Recvy. Rev.
Bonds
(High Tech. Fac. Group), 7 3/8s, 5/1/96 A 2,807,000
8,600,000 Port Auth. NY & NJ Cons. RIBS
9.6772s, 8/1/26 (acquired 8/29/91 cost $8,814,828)(c) AA 8,041,000
Port Auth. NY & NJ Cons. Rev. Bonds
11,000,000 53rd Ser., 8.7s, 7/15/20(d) AA 11,508,750
5,250,000 Ser. 51-E, 7s, 12/1/14 AA 5,512,500
32,500,000 93rd Ser., 6 1/8s, 6/1/94 AA 28,315,625
24,000,000 Ser. 89, 5 1/8s, 10/1/21 AA 18,300,000
Rockland Cnty., Swr. Dist. Rev. Bonds
1,000,000 7.7s, 6/1/16 AA 1,070,000
1,000,000 7.7s, 6/1/15 AA 1,070,000
900,000 7.7s, 6/1/14 AA 963,000
1,250,000 Schenectady, Indl. Dev. Agcy. Rev. Bonds
(Broadway Ctr. Project), CGIC, 7 3/8s, 9/1/09 AAA 1,335,938
10,000,000 Suffolk Cnty., Wtr. Auth. Wtrwks., Rev. Bonds
Ser. B, AMBAC, 5 5/8s, 6/1/16 AAA 8,487,500
7,000,000 Syracuse, Indl. Dev. Agcy. Civic Fac. Rev. Bonds
7s, 4/1/18 AA/P 7,000,000
Triborough Bridge & Tunnel Auth.
General Purpose Rev. Bonds
38,750,000 (Convention Ctr. Project), Ser. E, 7 1/4s, 1/1/10 Baa 38,846,875
4,750,000 Ser. Y, 6 1/8s, 1/1/21 A 4,215,625
16,925,000 Ser. Q, 6s, 1/1/13 Aa 15,084,406
12,500,000 (Convention Ctr. Project), Ser. E, 6s, 1/1/11 Baa 11,000,000
14,575,000 Ser. P, 5 1/2s, 1/1/19 A 11,732,875
21,480,000 Ser. B, zero %, 1/1/22 Aa 3,060,900
8,985,000 Ser. B, zero % 1/1/21 Aa 1,381,444
9,105,000 Ser. B, zero % 1/1/15 Aa 2,173,819
18,000,000 Triborough Bridge & Tunnel Auth. Special
Oblig. RIBS 8.382s, 1/1/12
(acquired 7/10/92, cost $18,135,000)(c) AAA 15,817,500
1,300,000 United Nations Dev. Corp. Rev. Bonds
(Sr. Lien, Phase 2 & 3), Ser. A, 7 7/8s, 7/1/26 AAA 1,382,875
White Plains, G.O. Rev. Bonds
1,000,000 4.7s, 1/15/06 Aa 855,000
1,000,000 4.6s, 1/15/05 Aa 863,750
-------------
1,952,731,923
</TABLE>
20
<PAGE>
<TABLE>
<CAPTION>
MUNICIPAL BONDS AND NOTES
PRINCIPAL AMOUNT RATINGS(b) VALUE
PUERTO RICO (4.0%)
- ----------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
$20,500,000 Cmnwlth. of Puerto Rico, Aqueduct & Swr.
Auth. Rev. Bonds,
Ser. A, 7 7/8s, 7/1/17 Baa $ 21,525,000
Cmnwlth. of Puerto Rico, Hwy. & Trans. Auth.
Rev. Bonds
3,760,000 Ser. X, 5 1/2s, 7/1/19 A 3,026,800
2,000,000 Ser. W, 5 1/2s, 7/1/15 A 1,657,500
6,460,000 Ser. X, 5 1/4s, 7/1/21 A 4,949,975
Puerto Rico Elec. Pwr. Auth. Rev. Bonds
7,500,000 Ser. J, 9 1/8s, 7/1/15 AAA 7,931,250
68,500,000 Ser. N, zero %, 7/1/17 A 13,785,625
11,175,000 Ser. O, zero %, 7/1/17 A 2,248,969
8,965,000 Puerto Rico Hsg. Bank & Fin. Agcy.
Single Fam. Rev. Bonds, 7 1/4s, 12/1/06 AAA 9,233,950
1,236,910 Puerto Rico Hsg. Fin. Corp. Rev. Bonds
(Bayamon Hsg. Dev. Project), FHA, 7 1/2s, 7/1/21 Baa 1,250,825
6,925,000 Puerto Rico Pub. Bldg. Auth. Fac. RIBS
10.04s, 7/1/02 (acquired 6/10/93, cost $8,906,404)(c) A 7,868,531
11,350,000 Puerto Rico Tel. Auth. Tel. Auth. RIBS
7.748s, 1/1/20 (acquired 9/25/92, cost $10,981,125)(c) A 9,037,438
--------------
82,515,863
--------------
TOTAL INVESTMENTS
(cost $2,086,259,088)(e) $2,035,247,786
==============
</TABLE>
(a) Percentages indicated are based on net assets of $2,075,114,372, which
corresponds to a net asset value per share for class A share and class B
share of $8.05 and $8.02 respectively.
(b) The Moody's or Standard & Poor's ratings indicated are believed to be the
most recent ratings available at November 30, 1994 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, 1994. Ratings are not covered by the Report of
Independent Accountants.
(c) Restricted, excluding 144A securities, as to public resale. At the date of
acquisition, 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, 1994 was $98,369,719 or 4.7%
of net assets.
(d) A portion of these securities were pledged to cover margin requirements for
futures contracts at November 30, 1994. The market value of segrated
securities with the custodian for transactions on futures contracts is
$10,437,500 or 0.5% of net assets.
(e) The aggregate identified cost for federal income tax purposes is
$2,089,835,818 resulting in gross unrealized appreciation and depreciation
of $58,611,287 and $113,199,319 respectively, or net unrealized depreciation
of $54,588,032.
The rates shown on Residual Interest Bonds (RIBS) and Inverse Rate Floaters
(I/F), which are securities paying variable interest rates that vary inversely
to changes in market interest rates and Variable Rate Demand Notes (VRDN) are
the current interest rates at November 30, 1994 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, 1994 (as a percentage of net assets):
<TABLE>
<CAPTION>
<S> <C>
Education 17.6%
Health Care/Hospitals 17.3
Transportation 16.8
</TABLE>
21
<PAGE>
Futures Contracts outstanding at November 30, 1994
<TABLE>
<CAPTION>
Total Aggregate Face Expiration Unrealized
Value Value Date Appreciation
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Treasury
Bond Futures
(Sell) $49,031,250 $49,187,500 Mar/95 $156,250
- -------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
22
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1994
<S> <C>
ASSETS
- ----------------------------------------------------------------------------------
Investments in securities, at value
(identified cost $2,086,259,088) (Note 1) $2,035,247,786
- ----------------------------------------------------------------------------------
Cash 33,538
- ----------------------------------------------------------------------------------
Interest receivables 41,393,935
- ----------------------------------------------------------------------------------
Receivable for shares of the fund sold 6,541,310
- ----------------------------------------------------------------------------------
Receivable for securities sold 21,973,293
- ----------------------------------------------------------------------------------
Total assets 2,105,189,862
- ----------------------------------------------------------------------------------
LIABILITIES
- ----------------------------------------------------------------------------------
Payable for securities purchased 17,850,770
- ----------------------------------------------------------------------------------
Payable for shares of the fund repurchased 3,780,158
- ----------------------------------------------------------------------------------
Distributions payable to shareholders 4,513,486
- ----------------------------------------------------------------------------------
Payable for compensation of Manager (Note 2) 2,624,828
- ----------------------------------------------------------------------------------
Payable for compensation of Trustees (Note 2) 688
- ----------------------------------------------------------------------------------
Payable for administrative services (Note 2) 12,250
- ----------------------------------------------------------------------------------
Payable for investor servicing and custodian fees (Note 2) 58,345
- ----------------------------------------------------------------------------------
Payable for distribution fees 779,482
- ----------------------------------------------------------------------------------
Payable for variation margin on futures contracts 328,125
- ----------------------------------------------------------------------------------
Other accrued expenses 127,358
- ----------------------------------------------------------------------------------
Total liabilities 30,075,490
- ----------------------------------------------------------------------------------
Net assets $2,075,114,372
- ----------------------------------------------------------------------------------
REPRESENTED BY
- ----------------------------------------------------------------------------------
Paid-in capital (Notes 1, 4 and 5) 2,179,363,545
- ----------------------------------------------------------------------------------
Undistributed net investment income (Notes 1 and 5) 1,461,483
- ----------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (Note 5) (54,855,604)
- ----------------------------------------------------------------------------------
Net unrealized depreciation of investments and futures (50,855,052)
- ----------------------------------------------------------------------------------
Total--Representing net assets applicable to capital
shares outstanding $2,075,114,372
- ----------------------------------------------------------------------------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE
- ----------------------------------------------------------------------------------
Net asset value and redemption price of class A
shares ($1,901,901,429 divided by 236,375,093 shares) $8.05
--------------
Offering price per class A share (100/95.25 of $8.05)* 8.45
- ----------------------------------------------------------------------------------
Net asset value and offering price of class B shares
($173,212,943 divided by 21,586,760 shares)+ 8.02
- ----------------------------------------------------------------------------------
</TABLE>
* 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.
The accompanying notes are an integral part of these financial statements.
23
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
Year ended November 30, 1994
<S> <C>
TAX EXEMPT INTEREST INCOME $153,000,268
- -------------------------------------------------------------------------------
EXPENSES:
- -------------------------------------------------------------------------------
Compensation of Manager (Note 2) $ 11,066,326
- -------------------------------------------------------------------------------
Investor servicing and custodian fees (Note 2) 1,178,035
- -------------------------------------------------------------------------------
Compensation of Trustees (Note 2) 53,072
- -------------------------------------------------------------------------------
Reports to shareholders 74,041
- -------------------------------------------------------------------------------
Auditing 88,246
- -------------------------------------------------------------------------------
Legal 49,713
- -------------------------------------------------------------------------------
Postage 165,200
- -------------------------------------------------------------------------------
Registration fees 8,359
- -------------------------------------------------------------------------------
Administrative services (Note 2) 29,968
- -------------------------------------------------------------------------------
Distribution fees -- class A (Note 2) 4,302,653
- -------------------------------------------------------------------------------
Distribution fees -- class B (Note 2) 1,470,611
- -------------------------------------------------------------------------------
Other expenses 127,352
- -------------------------------------------------------------------------------
TOTAL EXPENSES 18,613,576
- -------------------------------------------------------------------------------
NET INVESTMENT INCOME 134,386,692
- -------------------------------------------------------------------------------
Net realized loss on investments (Notes 1 and 3) (48,217,246)
- -------------------------------------------------------------------------------
Net realized gain on future contracts (Notes 1 and 3) 8,407,382
- -------------------------------------------------------------------------------
Net unrealized depreciation of investments and future
contracts during the year (284,366,608)
- -------------------------------------------------------------------------------
NET LOSS ON INVESTMENT TRANSACTIONS (324,176,472)
- -------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(189,789,780)
- -------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
24
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year ended Year ended
November 30 November 30
1994 1993
<S> <C> <C>
- --------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
- --------------------------------------------------------------------------------------------
Operations:
- --------------------------------------------------------------------------------------------
Net investment income $ 134,386,692 $ 126,909,777
- --------------------------------------------------------------------------------------------
Net realized gain (loss) on investments (48,217,246) 36,648,077
- --------------------------------------------------------------------------------------------
Net realized gain (loss) on future contracts 8,407,382 (13,832,372)
- --------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation)
of investments and future contracts (284,366,608) 95,362,861
- --------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (189,789,780) 245,088,343
- --------------------------------------------------------------------------------------------
Distributions to shareholders from:
- --------------------------------------------------------------------------------------------
Net investment income
- --------------------------------------------------------------------------------------------
Class A (123,572,963) (122,826,647)
- --------------------------------------------------------------------------------------------
Class B (8,995,974) (3,368,397)
- --------------------------------------------------------------------------------------------
Net realized gain on investments
- --------------------------------------------------------------------------------------------
Class A (12,732,691) (22,277,277)
- --------------------------------------------------------------------------------------------
Class B (849,699) --
- --------------------------------------------------------------------------------------------
In excess of net realized gain on investments
- --------------------------------------------------------------------------------------------
Class A (14,104,706) (4,353,395)
- --------------------------------------------------------------------------------------------
Class B (941,033) --
- --------------------------------------------------------------------------------------------
Increase (decrease) from capital share
transactions (Note 4) (1,157,824) 374,496,587
- --------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (352,144,670) 466,759,214
NET ASSETS
- --------------------------------------------------------------------------------------------
Beginning of year 2,427,259,042 1,960,499,828
- --------------------------------------------------------------------------------------------
End of year (including undistributed and
distribution in excess of net investment
income of $1,461,483 and $476,652, respectively) $2,075,114,372 $2,427,259,042
- --------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
25
<PAGE>
FINANCIAL HIGHLIGHTS*
(For a share outstanding throughout the year)
<TABLE>
<CAPTION>
For the period
January 4, 1993
(commencement
Year ended of operations) to
November 30 November 30
1994 1993 1994 1993 1992 1991
- ----------------------------------------------------------------------------------------------------------------------------------
CLASS B CLASS A
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $9.37 $8.95 $9.38 $8.98 $8.75 $8.34
- ----------------------------------------------------------------------------------------------------------------------------------
Investment Operations
Net Investment Income .46 .40 .53 .53 .57 .58
- ----------------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized
Gain (Loss) on investments (1.24) .42 (1.24) .52 .32 .42
- ----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations (.78) .82 (.71) 1.05 .89 1.00
- ----------------------------------------------------------------------------------------------------------------------------------
Less Distributions from:
Net Investment Income (.46) (.40) (.51) (.53) (.58) (.59)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Realized Gain on Investments (.05) -- (.05) (.10) (.08) --
- ----------------------------------------------------------------------------------------------------------------------------------
In Excess of Net Realized Gain
on Investments (.06) -- (.06) (.02) -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.57) (.40) (.62) (.65) (.66) (.59)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $8.02 $9.37 $8.05 $9.38 $8.98 $8.75
==================================================================================================================================
Total Investment Return at
Net Asset Value (%) (a) -8.75 9.25(b) -8.02 12.02 10.60 12.44
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in
thousands) $173,213 $146,665 $1,901,901 $2,280,604 $1,960,500 $1,659,383
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of Expenses to Average
Net Assets (%) 1.39 1.28(b) .75 .76 .66 .63
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of Net Investment Income
to Average Net Assets (%) 5.16 4.29(b) 5.82 5.67 6.44 6.84
==================================================================================================================================
Portfolio Turnover (%) 47.56 26.60 47.56 26.60 20.13 49.91
==================================================================================================================================
</TABLE>
26
<PAGE>
<TABLE>
<CAPTION>
Two Ten
months Year Months Year
ended ended ended ended
Year ended November 30 Nov. 30 Sept. 30 Sept. 30 Nov. 30
1990 1989 1988 1987 1987 1986 1985 1984
- ----------------------------------------------------------------------------------------------------------------------------------
CLASS A
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of
Period $8.61 $8.33 $7.99 $7.76 $8.56 $7.57 $7.10 $7.11
- ----------------------------------------------------------------------------------------------------------------------------------
Investment Operations
Net Investment Income .58 .60 .61 .11 .60 .65 .56 .65
- ----------------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized
Gain (Loss) on investments (.23) .27 .39 .22 (.72) .99 .47 (.01)
- ----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .35 .87 1.00 .33 (.12) 1.64 1.03 .64
- ----------------------------------------------------------------------------------------------------------------------------------
Less Distributions from:
Net Investment Income (.56) (.59) (.60) (.10) (.61) (.65) (.56) (.65)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Realized Gain on Investments (.06) -- (.06) -- (.07) -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
In Excess of Net Realized Gain
on Investments -- -- -- -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.62) (.59) (.66) (.10) (.68) (.65) (.56) (.65)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $8.34 $8.61 $8.33 $7.99 $7.76 $8.56 $7.57 $7.10
==================================================================================================================================
Total Investment Return at
Net Asset Value (%) (a) 4.37 10.77 12.99 4.32(b) (1.76) 22.41 14.72(b) 9.47
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in
thousands) $1,416,555 $1,313,050 $1,063,650 $958,201 $950,417 $701,799 $397,735 $241,698
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of Expenses to Average
Net Assets (%) .56 .57 .54 .08(b) .55 .56 .53(b) .71
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of Net Investment Income
to Average Net Assets 6.96 6.94 7.34 1.33(b) 7.08 7.81 7.23(b) 9.05
==================================================================================================================================
Portfolio Turnover 17.22 42.87 31.91 12.90(b) 43.28 50.45 58.95(b) 122.21
==================================================================================================================================
</TABLE>
* The table has been to Average Net Assets (%) restated to reflect a 3-for-1
share split, class A only, declared by the fund to Portfolio Turnover (%)
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) Not annualized.
27
<PAGE>
NOTES TO FINANCIAL STATEMENTS
November 30, 1994
NOTE 1
SIGNIFICANT ACCOUNTING POLICIES
The fund is a series of Putnam New York Tax Exempt Income Trust, "the Trust",
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. 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 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 fol-
28
<PAGE>
lowing 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.
At November 30, 1994, the fund had capital loss carryovers of approximately
$47,172,000 available to offset future realized capital gains, if any. This
amount will expire November 30, 2002. To the extent that capital loss carryovers
are used to offset realized gains, it is unlikely that gains so offset will be
distributed to shareholders, since any such distribution might be taxable as
ordinary income.
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.
The amount and character of income and gains to be distributed are determined in
accordance with income tax regulations which may differ from generally accepted
accounting principles. Reclassifications are made to the fund's
29
<PAGE>
capital accounts to reflect income and gains available for distribution (or
available capital loss carryovers) under income tax regulations. For the year
ended November 30, 1994 there were no current adjustments as a result 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."
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., 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: 0.6% 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.
Trustees of the fund receive an annual Trustee's fee of $2,870 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 the Putnam Companies, Inc. Investor servicing
agent functions are provided by Putnam Investor Services, a division of PFTC.
Investor servicing and custodian fees reported in the Statement of operations
for the year ended November 30, 1994 have been reduced by credits allowed by
PFTC.
30
<PAGE>
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 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
0.20% of the funds average net assets attributable to class A shares.
During the year ended November 30, 1994, Putnam Mutual Funds Corp., acting as
underwriter, received net commissions of $264,944 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, 1994, Putnam Mutual Funds Corp., acting as underwriter,
received no monies on such redemptions.
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 fund's average net
assets attributable to class B shares. Currently, the Trustees have limited
payments to .85% of such assets.
Putnam Mutual funds Corp. acting as an underwriter, also receives the proceeds
of the 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. has received contingent deferred sales charges of $541,067 from
redemptions for the year ended November 30, 1994.
NOTE 3
PURCHASES AND SALES OF SECURITIES
During the year ended November 30, 1994, purchases and sales of investment
securities other than short-term investments aggregated $1,083,442,684 and
$1,272,614,077 respectively. Purchases and sales of short-term municipal
obligations aggregated $156,595,000 and $124,875,000, respectively. In
determining the net gain or loss on securities sold, the cost of securities has
been determined on the identified cost basis.
31
<PAGE>
Transactions in treasury bond futures contracts during the year are summarized
as follows:
<TABLE>
<CAPTION>
SALES OF FUTURES CONTRACTS
Number of Aggregate
Contracts Face Value
- -------------------------------------------------------------------------
<S> <C> <C>
Contracts opened 24,250 $ 2,493,168,980
- -------------------------------------------------------------------------
Contracts closed (23,750) $(2,443,981,480)
- -------------------------------------------------------------------------
Open at end of year 500 $49,187,500
- -------------------------------------------------------------------------
</TABLE>
NOTE 4
CAPITAL SHARES
At November 30, 1994 there was an unlimited number of shares of beneficial
interest authorized divided into two classes of shares, class A and class B
capital shares. Transactions in capital shares were as follows:
<TABLE>
<CAPTION>
Year ended November 30, 1994
Class A Shares Amount
- -------------------------------------------------------------------------
<S> <C> <C>
Shares sold 41,795,457 $ 368,221,874
Shares issued in
connection with
reinvestment
of distributions 10,274,603 91,568,268
- -------------------------------------------------------------------------
52,070,060 459,790,142
- -------------------------------------------------------------------------
Shares repurchased (58,823,972) (514,934,501)
- -------------------------------------------------------------------------
Net increase (6,753,912) $ (55,144,359)
- -------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Year ended November 30, 1993
Class A Shares Amount
- -------------------------------------------------------------------------
<S> <C> <C>
Shares sold 50,423,746 $ 467,973,918
Shares issued in
connection with
reinvestment
of distributions 10,120,185 93,395,071
- -------------------------------------------------------------------------
60,543,931 561,368,989
- -------------------------------------------------------------------------
Shares repurchased (35,707,681) (332,870,429)
- -------------------------------------------------------------------------
Net increase 24,836,250 $ 228,498,560
- -------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Year ended November 30, 1994
Class B Shares Amount
- -------------------------------------------------------------------------
<S> <C> <C>
Shares sold 7,990,189 $ 71,636,430
Shares issued in
connection with
reinvestment
of distributions 823,923 7,301,216
- -------------------------------------------------------------------------
8,814,112 78,937,646
- -------------------------------------------------------------------------
Shares repurchased (2,881,112) (24,951,111)
- -------------------------------------------------------------------------
Net increase 5,933,000 $ 53,986,535
- -------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
January 4 (commencement of
operations) to November 30, 1993
- -------------------------------------------------------------------------
Class B Shares Amount
- -------------------------------------------------------------------------
<S> <C> <C>
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>
32
<PAGE>
NOTE 5
RECLASSIFICATION OF CAPITAL ACCOUNTS
Effective December 1, 1993, Putnam New York Tax Exempt Income Fund 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 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 SOP, the fund has reclassified $120,381 to increase undistributed
net investment income, $2,843,449 to increase accumulated net realized loss and
$2,723,068 to increase paid-in capital.
These adjustments represent the cumulated amounts necessary to report these
balances through November 30, 1993, the close of the fund's prior fiscal year
end for the financial reporting and tax purposes.
33
<PAGE>
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HELP YOUR INVESTMENT GROW.
You can set up a regular program for investing with as little as $25 a month
from a Putnam money market fund or your own bank account.*
SWITCH FUNDS EASILY.
You can move money from one account to another with the same class of shares
without a service charge. (This privilege is subject to change or
termination.)
ACCESS YOUR MONEY QUICKLY.
You can get checks sent out regularly or redeem shares any business day at
the then-current net asset value, which may be more or less than their
original cost.
For details about any of these or other services, contact your financial
advisor or call the toll-free number shown below and speak with a helpful
Putnam representative.
To make an additional investment in this or any other Putnam fund, contact
your financial advisor or call our toll-free number:
1-800-225-1581.
* Regular investing, of course, does not guarantee a profit or protect against
a loss in a declining market. Investors should consider their ability to
continue purchasing shares during periods of low price levels.
34
<PAGE>
FUND INFORMATION
INVESTMENT
MANAGER
Putnam Investment
Management, Inc.
One Post Office Square
Boston, MA 02109
MARKETING SERVICES
Putnam Mutual Funds Corp.
One Post Office Square
Boston, MA 02109
CUSTODIAN
Putnam Fiduciary Trust Company
LEGAL COUNSEL
Ropes & Gray
INDEPENDENT ACCOUNTANTS
Coopers & Lybrand L.L.P.
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
OFFICERS
George Putnam
President
Charles E. Porter
Executive Vice President
Patricia C. Flaherty
Senior Vice President
John R. Verani
Vice President
Lawrence J. Lasser
Vice President
Gordon H. Silver
Vice President
Gary N. Coburn
Vice President
James E. Erickson
Vice President
David J. Eurkus
Vice President and Fund Manager
William N. Shiebler
Vice President
Paul M. O'Neil
Vice President
John D. Hughes
Vice President and Treasurer
Beverly Marcus
Clerk and Assistant Treasurer
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, and the most recent
copy of Putnam's Quarterly Performance Summary. For more information or to
request a prospectus, call toll-free: 1-800-225-1581
35
<PAGE>
PUTNAM INVESTORS
--------------
Bulk Rate
THE PUTNAM FUNDS U.S. Postage
One Post Office Square PAID
Boston, Massachusetts 02109 Putnam
Investments
--------------
AOW/A65-15818
