Putnam
New York
Tax Exempt
Income
Fund
SEMIANNUAL REPORT
May 31, 1996
[LOGO: BOSTON * LONDON * TOKYO]
Fund highlights
* "[Putnam New York Tax Exempt Income Fund] has . . . weathered the
difficult early-1996 market relatively well. As interest rates have
risen, the fund's returns have ranked near the middle of the New York
muni group and in the top half among the long-maturity subset."
-- Morningstar Mutual Funds, May 24, 1996
* "In the months ahead, municipal bond funds may begin to provide
investors fewer bumps and better returns, many bond analysts say . . . .
Investors are becoming skittish about the sky-high returns on equity
funds and are beginning to seek some less-risky tax-free income; yields
on municipal bonds hover around an attractive 6 percent range, and
investors in some tax-high states can do better on an after-tax basis
investing in municipals than in Treasuries."
-- The New York Times, April 7, 1996
CONTENTS
4 Report from Putnam Management
8 Fund performance summary
12 Portfolio holdings
19 Financial statements
From the Chairman
[GRAPHIC OMITTED: PHOTO OF GEORGE PUTNAM]
(copyright) Karsh, Ottawa
Dear Shareholder:
One of the fascinating things about market watching is that you can
never tell what's going to trigger a defining event. Often what seems
like a defining event one moment is history the next. Who would have
guessed, for example, that a flat-tax proposal would swirl out of the
presidential primary election campaign to douse the municipal bond
market, only to blow away just as the rest of the bond market was
stumbling on statistics suggesting that inflation might flare up?
These were some of the challenges facing Fund Manager David J. Eurkus
during Putnam New York Tax Exempt Income Fund's semiannual period ended
May 31, 1996. Dave handled them with his usual aplomb as the results on
the following pages reveal.
At the March 1996 Shareholder Meeting, shareholders approved the merger
of Putnam New York Tax Exempt Intermediate Fund into Putnam New York Tax
Exempt Income Fund. We believe this merger benefits shareholders because
it allows you to pursue your investment goals in a larger, long-term
tax-exempt bond fund with resulting economies of scale.
Respectfully yours,
/S/ George Putnam
George Putnam
Chairman of the Trustees
July 17, 1996
Report from the Fund Manager
David J. Eurkus
Bond investors have endured a bumpy ride over the past six months, as
stronger-than-expected economic data undermined the extended rally that
began in 1995. Putnam New York Tax Exempt Income Fund's performance for
the semiannual period ended May 31, 1996, reflects this uncertain
climate. During the period, returns for class A, class B, and class M
shares equaled -1.70%, -1.92% and -1.85%, respectively, all at net asset
value. The returns at the maximum public offering price were -6.39% and
- -5.03% for class A and class M shares, respectively, and -6.70% for
class B shares at CDSC. For performance over longer periods, please see
pages 8 and 9.
At first glance, this performance may appear disappointing. However,
shareholders may take heart that even in this fickle market environment,
prices of the New York municipal bonds their fund owns have proved more
resilient than the municipal market at large. We attribute this
phenomenon to persistent demand for income exempt from New York taxes
along with continued shrinkage in the state's new-issue supply.
* MUNICIPALS SHOW FAVORABLE RELATIVE PERFORMANCE
Fixed-income markets began calendar 1996 on firm ground, but investor
enthusiasm for bonds abruptly changed to apprehension as evidence of
brisk economic activity late in the first quarter rekindled fears of
inflation. By mid-May, bond prices had recovered somewhat as further
economic news indicated a more moderate growth pace. The rally proved
short-lived, however; comments from several Federal Reserve officials
hinting at the prospect of higher short-term interest rates over the
next few months unnerved the market shortly after Memorial Day.
While this environment has been a difficult one for most fixed-income
securities, prices of tax-exempt bonds have fared better than taxables
since the beginning of this year. In fact, since last December,
municipal yields have fallen from approximately 89% of comparable
Treasury bonds to 83% as of late May.
The main reason for this outperformance is the apparent reduced
likelihood of a flat tax, which could jeopardize the tax advantages
enjoyed by municipal bonds. Although we expect broader tax reform to
become a prominent campaign issue as the presidential election gets
under way, enactment of a flat tax appears to be off the table for the
time being. In our judgment, this development removes a large obstacle
from the municipal market, providing the potential for continued
performance improvement relative to taxable bonds.
Perhaps the brightest spot for municipals is the possibility of a
significant inflow of cash. In June and July, investors are expected to
receive approximately $60 billion from municipal bond calls, maturities
and interest payments. Should even a portion of this cash re-enter the
municipal market, we suspect prices could react quite favorably.
* EMPHASIS ON ESSENTIAL-SERVICE BONDS, CALL PROTECTION
During the past six months, we have reduced your fund's holdings of
state-appropriated bonds in favor of essential service bond issues such
as water and sewer revenue bonds backed by a specific stream of project
revenues. While we are assured that the state will pay all of its debt
service obligations in full on a timely basis, we believe that the value
of state-appropriated bonds may be temporarily tarnished by the budget
discussion taking place in Albany. We anticipated potential delays in
adopting the state budget several months ago and believed that the value
of essential purpose project bonds, not dependent on any appropriation
by the state to cover debt service, would hold up better under the
spotlight of the contentious budget battle. We will review our position
again, once the state legislature and the governor agree on a means to
reduce the current budget deficit.
[GRAPHIC OMITTED: horizontal bar chart TOP INDUSTRY SECTORS*]
Airports/transportation 21.3%
Utilities/water and sewerage 15.5%
Education 12.4%
Health care 6.4%
Footnote reads:
Based on net assets as of 5/31/96. Holdings will vary over time.
Municipal issuers generally have the option to redeem their bonds before
maturity, often within 10 years of originally issuing the debt.
Maximizing protection against such early bond calls remains an important
element in preserving your fund's level of tax-exempt income. Since our
last report, we have selectively sold a portion of the portfolio's
lower-coupon, shorter call- dated holdings and replaced them with
higher-coupon noncallable bonds. This strategy provides the dual benefit
of reducing the call risk of your fund while also enhancing its income
stream.
* FAVORABLE TECHNICALS FOR NEW YORK BONDS EXPECTED TO CONTINUE
Over the balance of calendar 1996, we anticipate that the value of New
York municipals will remain relatively firm as a result of agreeable
technical conditions in the market. Many of the Empire State's major
financings in areas such as transportation, education, and mental health
systems have been completed. In addition, Governor Pataki's fiscal
reform program has led to a curtailment of state-supported debt, which
has further reduced the supply of state bonds.
Meanwhile, investor demand for income exempt from New York's high state
tax rate remains strong. In our opinion, demand for New York municipals
could continue to outstrip available supply as more bonds mature or are
called out of the market -- a development that could bode well for the
value of your fund.
* GUARDED APPROACH NECESSARY
A steadily growing economy presents a challenging environment for fixed-
income investing and clearly requires a more cautious strategy. Careful
attention to bond structure and emphasis on larger, well-known issuers
will play an important role in enhancing the price stability and
liquidity of your fund for the remainder of its fiscal period.
On a cheerier note, the summer months have historically been friendly to
municipal bonds, since cash from interest payments and bond calls is
frequently reinvested in the tax-exempt market. New-issue supply over
the next few months is not expected to keep pace with this year's
potential demand, creating the opportunity for a favorable supply/demand
imbalance.
[GRAPHIC OMITTED: pie chart: PORTFOLIO QUALITY OVERVIEW*]
A 14.4%
Aa 10.5%
Aaa 42.1%
Ba 1.0%
Baa 31.8%
VMIG1 (short term) 0.2%
Footnote reads:
*As a percentage of market value as of 5/31/96. A bond rated Baa or
higher is considered investment grade. All ratings reflect Moody's
terminology, unless noted otherwise, and may include unrated bonds
considered by Putnam Management to be of comparable quality. Portfolio
quality will vary over time.
Sustained interest from nontraditional buyers, including banks and
insurance companies, could provide further support. In addition, as the
risk of a flat tax diminishes, municipal returns could continue to
outpace those of taxables throughout the course of the year.
The views expressed here are exclusively those of Putnam Management.
They are not meant as investment advice. Although the described holdings
were viewed favorably as of 5/31/96, there is no guarantee the fund will
continue to hold these securities in the future.
Performance summary
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 and New York state and city personal income tax consistent
with preservation of capital.
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 in the fund.
TOTAL RETURN FOR PERIODS ENDED 5/31/96
Class A Class B Class M
(inception date) (9/2/83) (1/4/93) (4/10/95)
NAV POP NAV CDSC NAV POP
- ------------------------------------------------------------------------
6 months -1.70% -6.39% -1.92% -6.70% -1.85% -5.03%
- ------------------------------------------------------------------------
1 year 2.05 -2.77 1.36 -3.47 1.71 -1.62
- ------------------------------------------------------------------------
5 years 40.92 34.28 -- -- -- --
Annual average 7.10 6.07 -- -- -- --
- ------------------------------------------------------------------------
10 years 110.51 100.49 -- -- -- --
Annual average 7.73 7.20 -- -- -- --
- ------------------------------------------------------------------------
Life of class -- -- 14.66 11.79 3.49 0.07
Annual average -- -- 4.09 3.32 3.05 0.06
- ------------------------------------------------------------------------
COMPARATIVE INDEX RETURNS FOR PERIODS ENDED 5/31/96
Lehman Bros.
Municipal Consumer
Bond Index Price Index
- ------------------------------------------------------------------------
6 months -0.58% 1.95%
- ------------------------------------------------------------------------
1 year 4.57 2.89
- ------------------------------------------------------------------------
5 years 41.06 15.49
Annual average 7.12 2.92
- ------------------------------------------------------------------------
10 years 115.73 43.80
Annual average 7.99 3.70
- ------------------------------------------------------------------------
Life of class B 20.86 10.36
Annual average 5.71 2.93
- ------------------------------------------------------------------------
Life of class M 8.04 3.44
Annual average 6.83 3.01
- ------------------------------------------------------------------------
Performance data represent past results, do not reflect future
performance, and will differ for each share class. They do not take into
account any adjustment for taxes payable on reinvested distributions.
Investment returns and principal value will fluctuate so that an
investor's shares, when sold, may be worth more or less than their
original cost. POP assumes 4.75% maximum sales charge for class A shares
and 3.25% for class M shares. CDSC for class B shares assumes the
applicable sales charge with the maximum being 5%.
TOTAL RETURN FOR PERIODS ENDED 6/30/96
(most recent calendar quarter)
Class A Class B Class M
(9/2/83) (1/4/93) (4/10/95)
NAV POP NAV CDSC NAV POP
- ------------------------------------------------------------------------
6 months -1.49% -6.17% -1.81% -6.61% -1.75% -4.92%
- ------------------------------------------------------------------------
1 year 5.20 0.23 4.51 -0.47 4.79 1.35
- ------------------------------------------------------------------------
5 years 43.17 36.37 -- -- -- --
Annual average 7.44 6.40 -- -- -- --
- ------------------------------------------------------------------------
10 years 110.51 100.53 -- -- -- --
Annual average 7.73 7.21 -- -- -- --
- ------------------------------------------------------------------------
Life of class -- -- 15.88 12.99 4.61 1.16
Annual average -- -- 4.31 3.56 3.75 0.95
- ------------------------------------------------------------------------
Performance data represent past results, do not reflect future
performance, and will differ for each share class. Investment returns
and principal value will fluctuate so that an investor's shares, when
sold, may be worth more or less than their original cost.
PRICE AND DISTRIBUTION INFORMATION
6 months ended 5/31/96
Class A Class B Class M
- ------------------------------------------------------------------------
Distributions (number) 6 6 6
- ------------------------------------------------------------------------
Income $0.241374 $0.211995 $0.227600
- ------------------------------------------------------------------------
Capital gains1 -- -- --
- ------------------------------------------------------------------------
Total $0.241374 $0.211995 $0.227600
- ------------------------------------------------------------------------
Share value: NAV POP NAV NAV POP
- ------------------------------------------------------------------------
11/30/95 $8.97 $9.42 $8.95 $8.97 $9.27
- ------------------------------------------------------------------------
5/31/96 8.58 9.01 8.57 8.58 8.87
- ------------------------------------------------------------------------
Current return (end of period)
- ------------------------------------------------------------------------
Current dividend rate2 5.56% 5.30% 4.90% 5.26% 5.09%
- ------------------------------------------------------------------------
Taxable equivalent3(a) 9.91 9.45 8.73 9.38 9.07
- ------------------------------------------------------------------------
Taxable equivalent3(b) 10.35 9.86 9.12 9.79 9.47
- ------------------------------------------------------------------------
Current 30-day SEC yield4 5.20 4.95 4.54 4.90 4.74
- ------------------------------------------------------------------------
Taxable equivalent3(a) 9.27 8.82 8.09 8.73 8.45
- ------------------------------------------------------------------------
Taxable equivalent3(b) 9.68 9.21 8.45 9.12 8.82
- ------------------------------------------------------------------------
1Capital gains, if any, are taxable for federal and, in most cases,
state tax purposes.
Investment income may be subject to state and local taxes and, for some
investors, may be subject to the federal alternative minimum tax.
2Income portion of most recent distribution, annualized and divided
by NAV or POP at end of period.
3Assumes (a) maximum 43.90% combined federal and state tax rate or
(b) maximum 46.27% combined federal, state and New York City tax rate.
Results for investors subject to lower tax rates would not be as
advantageous.
4Based only on investment income, calculated using SEC guidelines.
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.
Class M shares have a lower initial sales charge and a higher 12b-1 fee
than class A shares and no sales charge on 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 for class A
shares and 3.25% for class M shares.
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
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. The index does 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. It is not possible
to invest directly in an index.
Consumer Price Index (CPI) is a commonly used measure of inflation; it
does not represent an investment return.
Our commitment to quality service
* CHOOSE AWARD-WINNING SERVICE
Putnam Investor Services has won the DALBAR Quality Tested Service Seal
for the past six years. In 1995, over 146,000 tests of 56 shareholder
service components demonstrated that Putnam outperformed the industry
standard in every category.
* HELP YOUR INVESTMENT GROW
Set up a systematic program for investing with as little as $25 a month
from a Putnam money market fund or from your checking or savings
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 regularly or redeem shares any business day at
the then-current net asset value, which may be more or less than the
original cost of the shares.
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.
<TABLE>
<CAPTION>
Portfolio of investments owned
May 31, 1996 (Unaudited)
Key to Abbreviations
AMBAC -- AMBAC Indemnity Corporation
FGIC -- Financial Guaranty Insurance Company
FHA Insd. -- Federal Housing Administration Insured
FRB -- Floating Rate Bonds
FSA -- Financial Security Assurance
G.O. Bonds -- General Obligation Bonds
IFB -- Inverse Floating Rate Bonds
MBIA -- Municipal Bond Investors Assurance Corporation
VRDN -- Variable Rate Demand Notes
<S> <C> <C> <C> <C>
MUNICIPAL BONDS AND NOTES (95.9%) *
PRINCIPAL AMOUNT RATINGS** VALUE
New York (87.4%)
- -------------------------------------------------------------------------------------------------------------------------
$5,000,000 Albany, Parking Auth. Rev. Bonds (Green & Hudson St. Garage), Ser. A, 7.15s,
9/15/16 A $5,212,500
3,000,000 Babylon, Indl. Dev. Agcy. Resource Recvy. Rev. Bonds (Ogden Martin Syst.
Babylon Inc.), Ser. B, 8 1/2s, 1/1/19 Aaa 3,330,000
14,500,000 Battery Park, City Auth. Rev. Bonds, 7.7s, 5/1/15 Aaa 16,040,625
5,000,000 Metro Trans. Auth. FRB, Ser. 1993B, AMBAC, 6.324s, 6/30/02 (acquired 6/30/93,
cost $5,127,013) (double dagger) Aaa 5,043,750
Metro. Trans. Auth. Svcs. Contract Fac. Rev. Bonds
3,290,000 (Trans. Fac.) Ser. 3, 7 1/2s, 7/1/16 Aaa 3,697,138
3,750,000 (Trans. Fac.) Ser. 3, 7 3/8s, 7/1/08 Baa 4,120,313
3,000,000 (Trans. Fac.) Ser. 6, 7s, 7/1/09 Baa 3,206,250
10,065,000 (Trans. Fac.) Ser. P, 5 3/4s, 7/1/15 Baa 9,385,613
6,000,000 (Trans. Fac.) Ser. J, FGIC, 5 1/2s, 7/1/22 Aaa 5,572,500
16,995,000 (Trans. Fac.) Ser. O, 5 1/2s, 7/1/17 Baa 15,635,400
8,000,000 (Commuter Fac.), Ser. O, 5 1/2s, 7/1/17 Baa 7,360,000
5,000,000 (NY Svc. Contract Trans. Facs.), Ser. 7, 5.45s, 7/1/07 Baa 4,793,750
5,000,000 Metro. Trans. Auth. Trans. Rev. Bonds Ser. O, MBIA, 6 3/8s, 7/1/20 Aaa 5,137,500
Muni Assistance Corp. for the City of NY Rev. Bonds
4,500,000 Ser. 61, 5 3/4s, 7/1/08 Aa 4,553,820
11,795,000 Ser. 62, 5 1/2s, 7/1/08 Aa 11,856,452
NY City G.O. Bonds
5,770,000 prerefunded, Ser. D, 8 1/4s, 8/1/11 Aaa 6,736,475
5,430,000 Ser. D, 8 1/4s, 8/1/11 Baa 6,156,263
12,325,000 Ser. B, 8 1/4s, 6/1/05 Baa 14,096,719
20,195,000 Ser. A, 8s, 8/15/19 Baa 23,426,200
10,000,000 Ser. D, 8s, 8/1/03 Baa 11,212,500
5,575,000 Ser. D, 7.65s, 2/1/08 Baa 6,027,969
3,455,000 Ser. E, 7.6s, 2/1/05 Baa 3,809,138
4,730,000 Ser. F, 7.6s, 2/1/05 Baa 5,214,825
26,000,000 Ser. B, 7 1/2s, 2/1/06 Baa 27,852,500
20,000,000 Ser. B, 7 1/2s, 2/1/02 Baa 21,650,000
20,150,000 Ser. E, 6 1/2s, 2/15/04 Baa 20,779,688
10,000,000 Ser. A, 6 1/8s, 6/15/14 A 10,225,000
6,050,000 Ser. C, 6s, 10/1/04 A 6,375,188
10,000,000 Ser. F, 5.2s, 10/1/07 A 9,787,500
18,800,000 Ser. F, 3s, 11/15/00 Baa 17,037,500
NY City Inds. Dev. Agcy. Rev. Bonds
12,000,000 (Visy Paper Inc. Project), 7.95s, 1/1/28 BB/P 12,165,000
8,000,000 (Solid Waste Disp-Visy Paper Project), 7.8s, 1/1/16 BB/P 8,110,000
9,100,000 NY Civic Indl. Dev. Agcy. Civic Fac. Rev. Bonds (Rockefeller Fndtn.
Project), 5 3/8s, 7/1/23 Aaa 8,531,250
NY City, Indl. Dev. Agcy. Special Fac. Rev. Bonds
15,625,000 (American Airlines Inc., Project), 6.9s, 8/1/24 Baa 16,132,813
10,500,000 (Terminal One Group Assn. Project), 6 1/8s, 1/1/24 A 10,145,625
18,250,000 (Terminal One Group Assn. Project), 6s, 1/1/19 A 17,520,000
6,000,000 (Terminal One Group Assn. Project), 6s, 1/1/15 A 5,812,500
13,000,000 NY City, Muni. Fin. Auth. Wtr. & Swr. Syst. FRB
FGIC, 10.751s, 6/15/11 (acquired 8/9/91, cost $13,587,860)(double dagger) Aaa 17,793,750
NY City, Muni. Wtr. Fin. Auth. Wtr. & Swr. Syst. Rev. Bonds
5,000,000 Ser. A, 6 3/4s, 6/15/17 A 5,262,500
17,500,000 MBIA, 6.37s, 6/15/08 Aaa 16,471,875
10,000,000 Ser. A, MBIA, 6s, 6/15/25 Aaa 9,962,500
28,465,000 Ser. B, 5 7/8s, 6/15/26 A 27,290,819
5,655,000 MBIA, 5 1/2s, 6/15/23 Aaa 5,230,875
12,000,000 MBIA, 5.35s, 6/1/12 Aaa 11,340,000
5,000,000 NY Hsg. Corp. Rev. Bonds, 5 1/2s, 11/1/10 Aa 4,743,750
NY State Dorm. Auth. Court Facs. Lease Rev. Bonds
6,980,000 Ser. A, 5 5/8s, 5/15/13 Baa 6,421,600
7,610,000 Ser. A, 5.3s, 5/15/07 Baa 7,162,913
13,000,000 NY State Dorm. Auth. IFB
(Cornell U.), 10.470s, 7/1/30 (acquired 8/9/81, cost $13,315,900)(double dagger) Aa 15,128,750
NY State Dorm. Auth. Rev. Bonds
14,500,000 (City U. Syst.), Ser. F, 7 7/8s, 7/1/17 Aaa 16,493,750
5,000,000 (NY Dept of Ed.), 7 3/4s, 7/1/21 Baa 5,506,250
9,000,000 (State U. Edl. Fac.), Ser. A, 7 5/8s, 5/15/05 Aaa 10,125,000
18,800,000 (City U. Syst.), Ser. C, 7 1/2s, 7/1/10 Baa 21,338,000
4,000,000 (State U. Athletic Fac.), 7 1/4s, 7/1/21 Baa 4,285,000
13,200,000 (State U. Edl. Fac.), Ser. A, 5 7/8s, 5/15/11 Baa 12,853,500
4,465,000 (U. of Rochester), 6 1/2s, 7/1/09 A 4,624,713
10,000,000 MBIA, 5 3/4s, 7/1/14 Aaa 9,775,000
6,975,000 (Construction City U. Syst.), Ser. A, 5 3/4s, 7/1/13 Baa 6,626,250
10,000,000 (Columbia U.) Ser. A, 5 3/4s, 7/1/10 Aaa 10,250,000
10,930,000 (Construction City U. Syst.), 5 3/4s, 7/1/09 Baa 10,602,100
5,700,000 (State U. Edl. Fac.), Ser. A, AMBAC, 5 3/4s, 7/1/07 Aaa 5,842,500
3,485,000 (State U. Edl. Fac.), Ser. B, 5.7s, 5/15/04 Baa 3,524,206
6,250,000 (State U. Edl. Fac.), Ser. A, 5 1/2s, 5/15/13 Baa 5,773,438
9,000,000 (State U. Edl. Fac.), Ser. A, 5 1/2s, 5/15/10 Baa 8,516,250
13,985,000 Ser. A, 5 1/2s, 5/15/10 Baa 12,848,719
5,000,000 (State U. Edl. Fac.), Ser. B, 5 1/2s, 5/15/08 Baa 4,793,750
5,975,000 (City U.), Ser. F, 5 3/8s, 7/1/07 Baa 5,683,719
38,600,000 (State U. Edl. Fac.), Ser. A, 5 1/4s, 5/15/15 Baa 34,402,250
11,000,000 (City U. Syst.) Ser. C, 5s, 7/1/17 Baa 9,295,000
4,020,000 (Columbia U.), 5s, 7/1/15 Aaa 3,628,050
15,985,000 (Cornell U.), 5s, 7/1/15 Aa 14,126,744
23,864,000 (State U. Edl. Fac.), Ser. B, zero %, 5/15/10 Baa 10,231,690
48,000,000 (State U. Edl. Fac.), Ser. B, zero %, 5/15/09 Baa 22,200,000
54,520,000 (State U. Edl. Fac.), Ser. B, zero %, 5/15/08 Baa 26,646,650
10,000,000 (State U. Edl. Fac.), Ser. B, zero %, 5/15/07 Baa 5,212,500
10,580,000 (State U. Edl. Fac.), Ser. B, zero %, 5/15/06 Baa 5,911,575
7,000,000 NY State Energy Research & Dev. Auth. Fac. Rev. Bonds, AMBAC, 6.1s, 5/15/20 Aaa 7,017,500
NY State Energy Research & Dev. Auth. Gas Fac. Rev. Bonds
10,000,000 IFB (Brooklyn Union Gas Co. Project), Ser. B, 9.868s, 7/1/26 A 11,587,500
5,000,000 (Cons. Edison Co. of NY, Inc. Project), Ser. A, 7 1/8s, 12/1/29 A 5,443,750
NY State Energy Research & Dev. Auth. Poll. Control Rev. Bonds (Niagra
Mohawk Pwr. Corp.), Ser. A, FGIC
10,000,000 7.2s, 7/1/29 Aaa 11,112,500
12,500,000 6 5/8s, 10/1/13 Aaa 13,203,125
6,225,000 NY State Env. Fac. Corp. Wtr. Facs. Rev. Bonds (Spring Valley Wtr Co.),
Ser. B, AMBAC, 6.15s, 8/1/24 Aaa 6,232,781
NY State Env. Fac. Corp. Poll. Control Rev. Bonds (State Wtr. Revolving Fund)
16,855,000 Ser. A, 7 1/2s, 6/15/12 Aa 18,582,638
5,050,000 Ser. E, 6 7/8s, 6/15/10 Aa 5,517,125
6,870,000 Ser. B, 6.65s, 9/15/13 Aaa 7,419,600
5,265,000 Ser. A, 6.55s, 9/15/10 Aaa 5,738,850
21,105,000 Ser. A, 5 7/8s, 6/15/14 Aa 20,867,569
6,695,000 Ser. B, 5.6s, 6/15/13 Aa 6,427,200
6,790,000 Ser. B, 5 1/2s, 6/15/10 Aa 6,637,225
16,750,000 NY State Hsg. Corp. Rev. Bonds, Ser. A, zero %, 11/1/10 Aaa 13,860,625
NY State Hsg. Fin. Agcy. Rev. Bonds Hlth. Facs.
23,310,000 prerefunded, Ser. A, 8s, 11/1/08 Aaa 26,777,363
4,790,000 Ser. A, 8s, 11/1/08 Baa 5,322,888
NY State Hsg. Fin. Agcy. Rev. Bonds
9,440,000 (Multi-Fam. Hsg. Insd. Mtge. Program), Ser. A, 7s, 8/15/22 Aa 9,853,000
5,570,000 (Multi-Fam. Mtge.), Ser. B, AMBAC, 6.35s, 8/15/23 Aaa 5,646,588
NY State Hsg. Fin. Agcy. Svc. Contract Obligation Rev. Bonds,
7,500,000 Ser. C, 7.3s, 3/15/21 Aaa 8,521,875
3,000,000 Ser. A, 6 1/4s, 9/15/10 Baa 2,988,750
NY State Local Govt. Assistance Corp. Rev. Bonds
13,800,000 Ser. B, 7 1/2s, 4/1/20 Aaa 15,663,000
5,000,000 Ser. A, 7 1/4s, 4/1/18 Aaa 5,625,000
10,000,000 Ser. A, 7 1/8s, 4/1/21 Aaa 11,325,000
11,900,000 Ser. A, 6 1/2s, 4/1/20 A 12,405,750
10,010,000 Ser. E, 6s, 4/1/14 A 10,235,225
17,605,000 Ser. B, 5 3/8s, 4/1/16 A 16,262,619
35,415,000 Ser. E, 5 1/4s, 4/1/16 A 32,758,875
10,000,000 Ser. E, 5s, 4/1/21 A 8,775,000
7,210,000 Ser. C, MBIA, zero%, 4/1/14 Aaa 2,514,488
NY State Med. Care Fac. Fin. Agcy. Rev. Bonds
3,230,000 (Mental Hlth. Svcs. Fac.), Ser. A, 8 7/8s, 8/15/07 Aaa 3,480,325
3,080,000 (Mental Hlth. Svcs. Fac.), Ser. A, 8 7/8s, 8/15/07 Baa 3,276,350
12,730,000 (Hosp. & Nursing Home), Ser. B, FHA Insd., 8s, 2/15/28 Aaa 13,780,225
7,150,000 (Hosp. & Nursing Home Insd. Mtge.), Ser. A, FHA Insd., 8s, 2/15/27 Aaa 7,570,063
7,985,000 (Mental Hlth. Svcs. Fac.), Ser. B, 7 7/8s, 8/15/20 Aaa 9,102,900
5,805,000 (Mental Hlth. Svcs. Fac.), Ser. B, 7 7/8s, 8/15/20 Baa 6,436,294
7,275,000 (Mental Hlth. Svcs. Fac.), Ser. A, 7.8s, 2/15/19 Baa 7,847,906
22,525,000 (Presbyterian Hosp.), Ser. A, FHA Insd., 7.7s, 2/15/25 Aaa 25,537,719
5,000,000 (Hosp. & Nursing Home), Ser. C, FHA Insd., 7.7s, 2/15/22 Aaa 5,462,500
6,160,000 (Mental Hlth. Svcs. Fac.), Ser. A, FHA Insd., 7 5/8s, 8/15/17 Baa 6,814,500
24,775,000 (Mental Hlth. Svcs. Fac.), Ser. A, 7 1/2s, 2/15/21 Aaa 28,057,688
18,500,000 (St. Luke's Hosp.), Ser. B, FHA Insd., 7.45s, 2/15/29 Aaa 20,581,250
3,000,000 (Hosp. & Nursing Home), Ser. A, FHA Insd., 6 7/8s, 2/15/32 Aa 3,123,750
6,625,000 (Methodist Hosp. & Nursing Home), Ser. A, FHA Insd., 6.7s, 8/15/23 Aaa 6,856,875
12,325,000 (Hosp. & Nursing Home), Ser. A, AMBAC, 6 1/2s, 8/15/29 Aaa 12,956,656
11,000,000 (Presbyterian Hosp.), MBIA, 5 3/8s, 2/15/25 Aaa 10,051,250
19,515,000 (Mental Hlth. Svcs. Fac.), Ser. F, FGIC, 5 1/4s, 2/15/19 Aaa 17,807,438
24,700,000 NY State Med. Care Fac. Fin. Agcy. FRB
(Monterfiore Med. Ctr.), Ser. A, MBIA, 10.124s, 2/15/24 (acquired various
dates from 10/3/91 to 4/8/92, cost $26,795,648)(double dagger) Aaa 27,694,875
NY State Mtge. Agcy. Rev. Bonds (Homeownership Dev. Program), Ser. QQ
3,705,000 7.7s, 10/1/12 Aa 3,968,981
5,000,000 5.65s, 4/1/15 Aa 4,850,000
42,585,000 NY State Mtge. Agcy. Rev. Bonds (Single-Fam.), Ser. 2, zero%, 10/1/14 Aa 7,648,692
4,250,000 NY State Muni. Bond Bank Agcy. Special Program Rev. Bonds, Ser. A,
6 3/4s, 3/15/11 A 4,505,000
NY State Pwr. Auth. General Purpose Rev. Bonds,
8,400,000 Ser. Y, 6 3/4s, 1/1/18 Aa 9,082,500
5,400,000 Ser. U, 5 3/4s, 1/1/18 Aa 5,184,000
4,200,000 NY State Thru-Way Auth. Gen. Rev. Bonds, Ser. B, MBIA, 5s, 1/1/20 Aaa 3,675,000
NY State Thru-Way Auth. Hwy. & Bridge Rev. Bonds
17,475,000 Ser. A, MBIA, 5 1/2s, 4/1/15 Aaa 16,579,406
10,000,000 Ser. B, MBIA, 5 1/8s, 4/1/15 Aaa 9,075,000
NY State Thru-Way Auth. Svc. Contract Rev. Bonds (Local Hwy. & Bridge Project)
13,300,000 7 1/4s, 1/1/10 Baa 14,829,500
16,385,000 6.45s, 4/1/15 Baa 16,528,369
6,500,000 6 1/4s, 4/1/07 Baa 6,556,875
11,800,000 6s, 1/1/11 Baa 11,328,000
5,625,000 5 3/4s, 4/1/06 Baa 5,561,719
9,525,000 5 1/4s, 4/1/13 Baa 8,465,344
10,000,000 NY State Thru-Way Auth Rev. Bonds (Local Hwy. & Bridge), MBIA, 5 3/4s, 4/1/13 Aaa 9,887,500
15,000,000 NY State Thru-way Auth. G.O. Bonds, Ser. C, FGIC, 6s, 1/1/25 Aaa 15,000,000
NY State Urban Dev. Corp. Rev. Bonds
9,000,000 (Onondaga Cnty. Convention Project), 7 7/8s, 1/1/20 Aaa 10,305,000
23,250,000 (State Fac.), 7 1/2s, 4/1/20 Aaa 26,388,750
33,250,000 (Correctional Fac.), Ser. 2, 7 1/2s, 1/1/18 Aaa 37,572,500
13,500,000 (Correctional Fac.), 5 5/8s, 1/1/07 Baa 12,960,000
7,775,000 (Correctional Fac.), 5 1/2s, 1/1/08 Baa 7,395,969
5,250,000 5 3/4s, 4/1/12 Baa 5,040,000
5,000,000 (Correctional Capital Fac.), Ser. A, FSA, 6 1/2s, 1/1/11 Aaa 5,406,250
6,000,000 (Correctional Capital Fac.), Ser. A, FSA, 6 1/2s, 1/1/10 Aaa 6,495,000
7,710,000 (Correctional Capital Fac.), Ser. A, 5 1/2s, 1/1/09 Baa 7,247,400
4,250,000 Onondaga Cnty., Indl. Dev. Agcy. Rev. Bonds (Bristol-Meyers Squibb Co.
Project), 5 3/4s, 3/1/24 Aaa 4,080,000
30,000,000 Port Auth. NY & NJ Cons. Rev. Bonds, Ser. 93, 6 1/8s, 6/1/94 Aa 30,562,500
8,600,000 Port Auth. NY & NJ Cons. IFB, 9.039s, 8/1/26 (acquired 8/29/91, cost
$8,814,828)(double dagger) Aa 9,535,250
5,250,000 Port Auth. NY & NJ Cons. VRDN, Ser. 51-E, 7s, 12/1/14 A 5,402,198
56,000,000 Port Auth. NY & NJ Rev. Bonds, FGIC, 4.997s, 11/15/20 Aaa 50,050,000
7,245,000 Port Auth. NY & NJ Rev. Bonds, AMBAC , 5 1/8s, 7/15/14 Aaa 6,683,513
Suffolk Cnty., G.O. Bonds MBIA,
5,815,000 6s, 2/1/08 Aaa 6,091,213
5,000,000 6s, 2/1/06 Aaa 5,287,500
2,500,000 Suffolk Cnty. Indl. Dev. Agcy. VRDN (Target Rock Corp.), 3.4s, 2/1/07 VMIG1 2,500,000
2,000,000 Suffolk Cnty. Wtr. Auth. VRDN, 3.5s, 2/8/01 VMIG1 2,000,000
Triborough Brdg. & Tunl. Auth. General Purpose Rev. Bonds
5,700,000 Ser. Y, 6s, 1/1/12 Aa 5,885,250
8,915,000 Ser. A, 6s, 1/1/10 Aa 9,238,169
21,480,000 MBIA, Ser. B, zero %, 1/1/22 Aaa 4,752,450
9,105,000 MBIA, Ser. B, zero %, 1/1/15 Aaa 3,072,938
Triborough Bridge & Tunnel Auth. Rev. Bonds (Convention Ctr. Project), Ser. E
38,750,000 7 1/4s, 1/1/10 Baa 42,867,188
12,500,000 6s, 1/1/11 Baa 12,296,875
18,000,000 Triborough Bridge & Tunnel Auth. Special Oblig. IFB, 8.284s, 1/1/12 (acquired
7/10/92, cost $18,135,000) (double dagger) Aaa 19,170,000
--------------
1,813,449,972
Puerto Rico (8.5%)
- -------------------------------------------------------------------------------------------------------------------------
Cmnwlth of PR Aqueduct & Swr. Auth. Rev. Bonds
20,500,000 Ser. A, 7 7/8s, 7/1/17 Aaa 22,370,625
5,000,000 6s, 7/1/06 Aaa 5,293,750
Cmnwlth. of PR G.O Bonds
7,250,000 Ser. A, MBIA, 5 3/8s, 7/1/22 Aaa 6,778,750
3,915,000 6 1/2s, 7/1/13 A 4,189,050
11,110,000 6 1/2s, 7/1/12 A 11,915,475
Cmnwlth. of PR, Hwy. & Trans. Auth. Hwy. Rev. Bonds
3,000,000 Ser. V, 6 5/8s, 7/1/12 A 3,165,000
7,000,000 Ser. Z, 6 1/4s, 7/1/16 Aaa 7,481,250
9,000,000 Ser. Z, 5 1/2s, 7/1/13 A 8,775,000
7,500,000 Ser. X, 5 1/2s, 7/1/08 A 7,246,875
2,500,000 PR Elec. Pwr. Auth.
IFB, FSA, 8.178s, 7/1/23 Aaa 2,471,875
PR Elec. Pwr. Auth. Rev. Bonds
33,000,000 Ser. W, MBIA, 7s, 7/1/07 Aaa 37,537,500
8,000,000 Ser. R, 6 1/4s, 7/1/17 A 8,060,000
68,500,000 Ser. N, zero %, 7/1/17 A 18,923,125
11,175,000 Ser. O, zero %, 7/1/17 A 3,087,094
1,182,950 PR Hsg. Fin. Corp. Rev. Bonds (Bayamon Hsg. Dev. Project),
FHA Insd., 7 1/2s, 7/1/21 BBB/P 1,287,922
13,850,000 PR Pub. Bldgs. Auth. Rev. Bonds (Gtd. Pub. Edl. & Hlth. Facs.),
6 7/8s, 7/1/12 Aaa 15,494,688
11,350,000 PR Tel. Auth. IFB, 7.669s, 1/1/20 (acquired 9/25/92, cost
$10,981,125)(double dagger) A 11,520,250
--------------
175,598,229
- -------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $1,884,772,525)*** $1,989,048,201
- -------------------------------------------------------------------------------------------------------------------------
* Percentages indicated are based on net assets of $2,073,966,318.
** The Moody's or Standard & Poor's ratings indicated are believed to be the most
recent ratings available at May 31, 1996 for the securities
listed. Ratings are generally ascribed to securities at the time of issuance. While
the agencies may from time to time revise such ratings, they undertake no
obligation to do so, and the ratings do not necessarily represent what the agencies
would ascribe to these securities at May 31, 1996. Securities
rated by Putnam are indicated by"/P"and are not publicly rated.
++ Restricted, excluding 144A securities, as to public resale. The total market value
of restricted securities held at May 31, 1996 was $105,886,625 or 5.1% of net assets.
*** The aggregate identified cost on a tax basis is $1,888,504,917, resulting in gross
unrealized appreciation and depreciation of $122,750,834 and $22,207,550,
respectively, or net unrealized appreciation of $100,543,284.
The fund had the following industry group concentrations greater than 10% at May 31, 1996
(as a percentage of net assets):
Airport/Transportation 21.3%
Utilities/Water & Sewage 15.5
Education 12.4
The rates shown on Inverse floating rate bonds, (IFB),
which are securities paying interest rates
that vary inversely to changes in the market interest rates, floating rate bonds, (FRB) and variable rate
demand notes (VRDN's) are the current interest rates at May 31, 1996.
<CAPTION>
- ---------------------------------------------------------------------------------------
Futures Contracts Outstanding at May, 1996
Unrealized
Total Aggregate Expiration Appreciation
Value Face Value Date (Depreciation)
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Treasury
20-year bonds (short) $ 2,150,625 $ 2,150,625 September 96 --
20-year bonds (short) 51,615,000 51,600,000 September 96 $(15,000)
20-year bonds (short) 53,765,625 53,812,500 September 96 46,875
- ---------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of assets and liabilities
May 31, 1996 (Unaudited)
<S> <C>
Assets
- -----------------------------------------------------------------------------------------------------------------------
Investments in securities, at value (identified cost $1,884,772,525)(Note 1) $1,989,048,201
- -----------------------------------------------------------------------------------------------------------------------
Cash 648,713
- -----------------------------------------------------------------------------------------------------------------------
Dividends, interest and other receivables 39,055,209
- -----------------------------------------------------------------------------------------------------------------------
Receivable for shares of the fund sold 1,211,374
- -----------------------------------------------------------------------------------------------------------------------
Receivable for securities sold 53,992,927
- -----------------------------------------------------------------------------------------------------------------------
Receivable for variation margin 46,875
- -----------------------------------------------------------------------------------------------------------------------
Receivable from Manager (Note 2) 15,054
- -----------------------------------------------------------------------------------------------------------------------
Total assets 2,084,018,353
Liabilities
- -----------------------------------------------------------------------------------------------------------------------
Payable for variation margin 15,000
- -----------------------------------------------------------------------------------------------------------------------
Distributions payable to shareholders 4,259,283
- -----------------------------------------------------------------------------------------------------------------------
Payable for shares of the fund repurchased 2,059,414
- -----------------------------------------------------------------------------------------------------------------------
Payable for compensation of Manager (Note 2) 2,574,902
- -----------------------------------------------------------------------------------------------------------------------
Payable for investor servicing and custodian fees (Note 2) 174,244
- -----------------------------------------------------------------------------------------------------------------------
Payable for compensation of Trustees (Note 2) 4,019
- -----------------------------------------------------------------------------------------------------------------------
Payable for administrative services (Note 2) 4,164
- -----------------------------------------------------------------------------------------------------------------------
Payable for distribution fees (Note 2) 786,960
- -----------------------------------------------------------------------------------------------------------------------
Other accrued expenses 174,049
- -----------------------------------------------------------------------------------------------------------------------
Total liabilities 10,052,035
- -----------------------------------------------------------------------------------------------------------------------
Net assets $2,073,966,318
Represented by
- -----------------------------------------------------------------------------------------------------------------------
Paid-in-capital (Notes 1, 4 and 5) $2,038,044,824
- -----------------------------------------------------------------------------------------------------------------------
Undistributed net investment income (Note 1) 1,224,896
- -----------------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (Note 1) (69,611,232)
- -----------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments (Note 5) 104,307,830
- -----------------------------------------------------------------------------------------------------------------------
Total -- Representing net assets applicable to capital shares outstanding $2,073,966,318
Computation of net asset value and offering price
- -----------------------------------------------------------------------------------------------------------------------
Net asset value and redemption price of class A shares ($1,857,459,664 divided by 216,409,810 shares) $8.58
- -----------------------------------------------------------------------------------------------------------------------
Offering price of class A shares (100/95.25 of $8.58)* $9.01
- -----------------------------------------------------------------------------------------------------------------------
Net asset value and offering price of class B shares ($215,505,746 divided by 25,156,413 shares)+ $8.57
- -----------------------------------------------------------------------------------------------------------------------
Net asset value and redemption price of class M shares ($1,000,908 divided by 116,632 shares) $8.58
- -----------------------------------------------------------------------------------------------------------------------
Offering price of class M shares (100/96.75 of $8.58)** $8.87
- -----------------------------------------------------------------------------------------------------------------------
* 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.
** On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales
the offering price is reduced.
The accompanying notes are an integral part of these financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of operations
Six months ended May 31, 1996 (Unaudited)
<S> <C>
Tax Exempt Interest Income: $67,539,510
- -----------------------------------------------------------------------------------------------
Expenses:
- -----------------------------------------------------------------------------------------------
Compensation of Manager (Note 2) 5,217,485
- -----------------------------------------------------------------------------------------------
Investor servicing and custodian fees (Note 2) 820,742
- -----------------------------------------------------------------------------------------------
Compensation of Trustees (Note 2) 26,360
- -----------------------------------------------------------------------------------------------
Administrative services (Note 2) 12,321
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class A (Note 2) 1,954,381
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class B (Note 2) 923,828
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class M (Note 2) 2,106
- -----------------------------------------------------------------------------------------------
Reports to shareholders 47,977
- -----------------------------------------------------------------------------------------------
Registration fees 3,000
- -----------------------------------------------------------------------------------------------
Auditing 39,280
- -----------------------------------------------------------------------------------------------
Legal 27,710
- -----------------------------------------------------------------------------------------------
Postage 46,550
- -----------------------------------------------------------------------------------------------
Other 31,299
- -----------------------------------------------------------------------------------------------
Total expenses 9,153,039
- -----------------------------------------------------------------------------------------------
Expense reduction (Note 2) (191,289)
- -----------------------------------------------------------------------------------------------
Total expenses 8,961,750
- -----------------------------------------------------------------------------------------------
Net investment income 58,577,760
- -----------------------------------------------------------------------------------------------
Net realized gain on investments (Notes 1 and 3) 12,275,442
- -----------------------------------------------------------------------------------------------
Net realized loss on futures contracts (Notes 1 and 3) (110,081)
- -----------------------------------------------------------------------------------------------
Net unrealized depreciation of investments and futures during the period (Note 5) (107,001,983)
- -----------------------------------------------------------------------------------------------
Net loss on investments (94,836,622)
- -----------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations ($36,258,862)
- -----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of changes in net assets
Six months ended Year ended
May 31 November 30
1996* 1995
- --------------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (decrease) in net assets
- --------------------------------------------------------------------------------------------------------
Operations:
- --------------------------------------------------------------------------------------------------------
Net investment income $58,577,760 $121,635,507
- --------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 12,165,361 (25,616,294)
- --------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments (107,001,983) 262,034,238
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations (36,258,862) 358,053,451
- --------------------------------------------------------------------------------------------------------
Distributions to shareholders:
- --------------------------------------------------------------------------------------------------------
From net investment income
- --------------------------------------------------------------------------------------------------------
Class A (53,322,996) (113,360,526)
- --------------------------------------------------------------------------------------------------------
Class B (5,221,792) (9,815,891)
- --------------------------------------------------------------------------------------------------------
Class M (21,704) (11,640)
- --------------------------------------------------------------------------------------------------------
Decrease from capital share transactions (Notes 4 and 5) (60,432,591) (80,755,503)
- --------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (155,257,945) 154,109,891
- --------------------------------------------------------------------------------------------------------
Net Assets
- --------------------------------------------------------------------------------------------------------
Beginning of period 2,229,224,263 2,075,114,372
- --------------------------------------------------------------------------------------------------------
End of period (including undistributed net investment income
of $1,224,896 and $1,213,628, respectively) $2,073,966,318 $2,229,224,263
- --------------------------------------------------------------------------------------------------------
*Unaudited
The accompanying notes are an integral part of these financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
(For a share outstanding throughout the period)
For the Period
April 10, 1995
Six months (commencement Six months
ended of operations) ended
May 31 to November 30 May 31
- --------------------------------------------------------------------------------------------------------------------
1996* 1995 1996*
- --------------------------------------------------------------------------------------------------------------------
Class M
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $8.97 $8.79 $8.95
- --------------------------------------------------------------------------------------------------------------------
Investment operations
- --------------------------------------------------------------------------------------------------------------------
Net investment income .23 .26 + .22
- --------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (.39) .21 (.38)
- --------------------------------------------------------------------------------------------------------------------
Total from investment operations (.16) .47 (.16)
- --------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
- --------------------------------------------------------------------------------------------------------------------
From net investment income (.23) (.29) (.22)
- --------------------------------------------------------------------------------------------------------------------
From net realized gain on investments -- -- --
- --------------------------------------------------------------------------------------------------------------------
In excess of net realized gain on investments -- -- --
- --------------------------------------------------------------------------------------------------------------------
Total distributions (.23) (.29) (.22)
- --------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $8.58 $8.97 $8.57
- --------------------------------------------------------------------------------------------------------------------
Total investment return at net asset value (%)(a) (1.85)(b) 5.44 (b) (1.92)(b)
- --------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $1,001 $588 $215,506
- --------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets (%)(c) .53 (b) .65 (b) .71 (b)
- --------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average net assets (%) 2.55 (b) 3.30 (b) 2.40 (b)
- --------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 32.40 (b) 73.85 32.40 (b)
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (continued)
(For a share outstanding throughout the period)
For the Period
January 4, 1993
(commencement
of operations)
Year ended November 30 to November 30
- --------------------------------------------------------------------------------------------------------------------
1995 1994 1993
- --------------------------------------------------------------------------------------------------------------------
Class B
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $8.02 $9.37 $8.95
- --------------------------------------------------------------------------------------------------------------------
Investment operations
- --------------------------------------------------------------------------------------------------------------------
Net investment income .43 .46 .40
- --------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments .93 (1.24) .42
- --------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.36 (.78) .82
- --------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
- --------------------------------------------------------------------------------------------------------------------
From net investment income (.43) (.46) (.40)
- --------------------------------------------------------------------------------------------------------------------
From net realized gain on investments -- (.05) --
- --------------------------------------------------------------------------------------------------------------------
In excess of net realized gain on investments -- (.06) --
- --------------------------------------------------------------------------------------------------------------------
Total distributions (.43) (.57) (.40)
- --------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $8.95 $8.02 $9.37
- --------------------------------------------------------------------------------------------------------------------
Total investment return at net asset value (%)(a) 17.26 (8.75) (9.25)(b)
- --------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $215,614 $173,213 $146,665
- --------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets (%)(c) 1.43 1.39 1.28 (b)
- --------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average net assets (%) 4.95 5.16 4.29 (b)
- --------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 73.85 47.56 26.60
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (continued)
(For a share outstanding throughout the period)
Six months
ended Year ended
May 31 November 30
- --------------------------------------------------------------------------------------------------------------------
1996* 1995 1994
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $8.97 $8.05 $9.38
- --------------------------------------------------------------------------------------------------------------------
Investment operations
- --------------------------------------------------------------------------------------------------------------------
Net investment income .24 .49 .53
- --------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (.39) .92 (1.24)
- --------------------------------------------------------------------------------------------------------------------
Total from investment operations (.15) 1.41 (.71)
- --------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
- --------------------------------------------------------------------------------------------------------------------
From net investment income (.24) (.49) (.51)
- --------------------------------------------------------------------------------------------------------------------
From net realized gain on investments -- -- (.05)
- --------------------------------------------------------------------------------------------------------------------
In excess of net realized gain on investments -- -- (.06)
- --------------------------------------------------------------------------------------------------------------------
Total distributions (.24) (.49) (.62)
- --------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $8.58 $8.97 $8.05
- --------------------------------------------------------------------------------------------------------------------
Total investment return at net asset value (%)(a) (1.70)(b) 17.95 (8.02)
- --------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $1,857,460 $2,013,022 $1,901,901
- --------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets (%)(c) .39 (b) .78 .75
- --------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average net assets (%) 2.73 (b) 5.63 5.82
- --------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 32.40 (b) 73.85 47.56
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (continued)
(For a share outstanding throughout the period)
Year ended November 30
- --------------------------------------------------------------------------------------------------------------------
1993 1992 1991
- --------------------------------------------------------------------------------------------------------------------
Class A
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $8.98 $8.75 $8.34
- --------------------------------------------------------------------------------------------------------------------
Investment operations
- --------------------------------------------------------------------------------------------------------------------
Net investment income .53 .57 .58
- --------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments .52 .32 .42
- --------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.05 .89 1.00
- --------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
- --------------------------------------------------------------------------------------------------------------------
From net investment income (.53) (.58) (.59)
- --------------------------------------------------------------------------------------------------------------------
From net realized gain on investments (.10) (.08) --
- --------------------------------------------------------------------------------------------------------------------
In excess of net realized gain on investments (.02) -- --
- --------------------------------------------------------------------------------------------------------------------
Total distributions (.65) (.66) (.59)
- --------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $9.38 $8.98 $8.75
- --------------------------------------------------------------------------------------------------------------------
Total investment return at net asset value (%)(a) 12.02 10.60 12.44
- --------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $2,280,604 $1,960,500 $1,659,383
- --------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets (%)(c) .76 .66 .63
- --------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average net assets (%) 5.67 6.44 6.84
- --------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 26.60 20.13 49.91
- --------------------------------------------------------------------------------------------------------------------
* Unaudited
+ Per share net investment income for the period ended November 30,
1995 has been determined on the basis of the weighted average
number of shares outstanding during the period.
(a) Total investment return assumes dividend reinvestment
and does not reflect the effect of sales charges.
(b) Not annualized.
(c) The ratio of expenses to average net assets for the year ended November 30,
1995 and thereafter, includes amounts paid through expense offset
arrangements. Prior period ratios exclude these amounts. (Note 2.)
</TABLE>
Notes to financial statements
May 31, 1996 (Unaudited)
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 Investment Management,
Inc. ("Putnam Management"), the fund's Manager, a wholly-owned
subsidiary of Putnam Investments, Inc. believes is consistent with
preservation of capital by investing primarily in a portfolio of longer-
term New York tax exempt securities.
The fund offers class A, class B and class M shares. Class A shares are
sold with a maximum front-end sales charge of 4.75%. Class B shares,
which convert to class A shares after approximately eight years, do not
pay a front-end sales charge, but pay a higher ongoing distribution fee
than class A shares, and are subject to a contingent deferred sales
charge, if those shares are redeemed within six years of purchase. Class
M shares are sold with a maximum front-end sales charge of 3.25% and pay
an ongoing distribution fee that is lower than class B shares and higher
than class A shares.
Expenses of the fund are borne pro-rata by the holders of each class of
shares, except that each class bears expenses unique to that class
(including the distribution fees applicable to such class). Each class
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 preparation of financial statements is in conformity
with generally accepted accounting principles and requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities. Actual results could differ from those
estimates.
A) Security valuation 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 Putnam Management
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 and options contracts The fund may use futures and options
contracts to hedge against changes in the values of securities the fund
owns or expects to purchase. The fund may also write options on
securities it owns or in which it may invest to increase its current
returns.
The potential risk to the fund is that the change in value of futures
and options contracts may not correspond to the change in value of the
hedged instruments. In addition, losses may arise from changes in the
value of the underlying instruments, if there is an illiquid secondary
market for the contracts, or if the counterparty to the contract is
unable to perform.
Futures contracts are valued at the quoted daily settlement prices
established by the exchange on which they trade. Exchange traded options
are valued at the last sale price, or if no sales are reported, the last
bid price for purchased options and the last ask price for written
options. Options traded over-the-counter are valued using prices
supplied by dealers.
D) Federal taxes It is the policy of the fund to distribute all of its
taxable income within the prescribed time and otherwise comply with the
provisions of the Internal Revenue Code applicable to regulated
investment companies. It is also the intention of the fund to distribute
an amount sufficient to avoid imposition of any excise tax under Section
4982 of the Internal Revenue Code of 1986. Therefore, no provision has
been made for federal taxes on income, capital gains or unrealized
appreciation on securities held and for excise tax on income and capital
gains.
At November 30, 1995, the fund had a capital loss carryover of
approximately $51,972,000 available to offset future capital gains, if
any. The amount of carryover and the expiration dates are:
Loss Carryover Expiration Date
------------------- -------------------
$47,172,000 Nov. 30, 2002
4,800,000 Nov. 30, 2003
E) Distributions to shareholders Income dividends are recorded daily by
the fund and are distributed monthly. Capital gain 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
capital accounts to reflect income and gains available for distribution
(or available capital loss carryovers) under income tax regulations.
F) Amortization of bond premium and discount Any premium resulting from
the purchase of securities in excess of maturity value is amortized on a
yield-to-maturity basis. Discounts on zero coupon bonds and original
issue bonds are accreted according to the effective yield method.
Note 2
Management fee, administrative services and other transactions
Compensation of Putnam Management, for management and investment
advisory services is paid quarterly based on the average net assets of
the fund. Such fee is based on the following annual rates: 0.60% of the
first $500 million of average net assets, 0.50% of the next $500
million, 0.45% of the next $500 million and 0.40% of any amount over
$1.5 billion subject, under current law, to reduction in any year by the
amount of certain brokerage commissions and fees (less expenses)
received by affiliates of Putnam Management on the fund's portfolio
transactions.
The fund reimburses Putnam Management 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 Trustees fee of $2,640 and an
additional fee for each Trustee's meeting attended. Trustees who are not
interested persons of Putnam Management and who serve on committees of
the Trustees receive additional fees for attendance at certain committee
meetings.
The fund adopted a Trustee Fee Deferral Plan (the "Plan") which allows
the Trustees to defer the receipt of all or a portion of Trustees Fees
payable on or after July 1, 1995. The deferred fees remain invested in
certain Putnam funds until distribution in accordance with the Plan.
Custodial functions for the fund's assets are provided by Putnam
Fiduciary Trust Company (PFTC), a wholly-owned subsidiary of Putnam
Investments, Inc. Investor servicing agent functions are provided by
Putnam Investor Services, a division of PFTC.
For the six months ended May 31, 1996, fund expenses were reduced by
$191,289 under expense offset arrangements with PFTC. Investor servicing
and custodian fees reported in the Statement of operations exclude these
credits. The fund could have invested a portion of the assets utilized
in connection with the expense offset arrangements in an income
producing asset if it had not entered into such arrangements.
The fund has adopted distribution plans (the "Plans") with respect to
its class A, class B and class M shares pursuant to Rule 12b-1 under the
Investment Company Act of 1940. The purpose of the Plans is to
compensate Putnam Mutual Funds Corp., a wholly-owned subsidiary of
Putnam Investments Inc., for services provided and expenses incurred by
it in distributing shares of the fund. The Plans provide for payments by
the fund to Putnam Mutual Funds Corp. at an annual rate up to 0.35%,
1.00% and 1.00% of the average net assets attributable to class A, class
B and class M shares, respectively. The Trustees have approved payment
by the fund at an annual rate of 0.20%, 0.85% and 0.50% of the average
net assets attributable to class A, class B and class M shares
respectively.
For the six months ended May 31, 1996, Putnam Mutual Funds Corp., acting
as underwriter received net commissions of $79,709 and $333 from the
sale of class A and class M shares, respectively and $266,390 in
contingent deferred sales charges from redemptions of class B shares. A
deferred sales charge of up to 1% is assessed on certain redemptions of
class A shares. For the six months ended May 31, 1996, Putnam Mutual
Funds Corp., acting as underwriter received $511 on class A redemptions.
Note 3
Purchase and sales of securities
During the six months ended May 31, 1996, purchases and sales of
investment securities other than short-term investments aggregated
$682,313,397 and $750,159,225, respectively. There were no purchases and
sales of U.S. government obligations. In determining the net gain or
loss on securities sold, the cost of securities has been determined on
the identified cost basis.
Note 4
Capital shares
At May 31, 1996, there was an unlimited number of shares of beneficial
interest authorized. Transactions in capital shares were as follows:
Six months ended
May 31, 1996
- ----------------------------------------------------
Class A Shares Amount
- ----------------------------------------------------
Shares sold 23,352,475 $205,822,390
- ----------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 3,565,286 31,426,065
- ----------------------------------------------------
Shares issued in
connection with
the merger of
Putnam New York
Intermediate Tax
Exempt Fund 262,921 2,303,192
- ----------------------------------------------------
27,180,682 239,551,647
Shares
repurchased (35,164,412) (310,002,284)
- ----------------------------------------------------
Net decrease (7,983,730) $(70,450,637)
- ----------------------------------------------------
Year ended
November 30, 1995
- ----------------------------------------------------
Class A Shares Amount
- ----------------------------------------------------
Shares sold 34,641,941 $299,863,106
- ----------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 7,781,790 67,528,149
- ----------------------------------------------------
42,423,731 367,391,255
Shares
repurchased (54,405,284) (470,391,927)
- ----------------------------------------------------
Net decrease (11,981,553) $(103,000,672)
- ----------------------------------------------------
Six months ended
May 31, 1996
- ----------------------------------------------------
Class B Shares Amount
- ----------------------------------------------------
Shares sold 2,549,529 $22,505,260
- ----------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 387,612 3,408,233
- ----------------------------------------------------
Shares issued in
connection with
the merger of
Putnam New York
Intermediate Tax
Exempt Fund 193,968 1,695,279
- ----------------------------------------------------
3,131,109 27,608,772
Shares
repurchased (2,055,390) (18,045,370)
- ----------------------------------------------------
Net increase 1,075,719 $9,563,402
- ----------------------------------------------------
Year ended
November 30, 1995
- ----------------------------------------------------
Class B Shares Amount
- ----------------------------------------------------
Shares sold 5,286,706 $45,689,999
- ----------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 736,750 6,385,614
- ----------------------------------------------------
6,023,456 52,075,613
Shares
repurchased (3,529,522) (30,405,514)
- ----------------------------------------------------
Net increase 2,493,934 $21,670,099
- ----------------------------------------------------
Six months ended
May 31, 1996
- ----------------------------------------------------
Class M Shares Amount
- ----------------------------------------------------
Shares sold 55,746 $495,355
- ----------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 2,131 18,687
- ----------------------------------------------------
57,877 514,042
Shares
repurchased (6,813) (59,398)
- ----------------------------------------------------
Net increase 51,064 $454,644
- ----------------------------------------------------
For the period
April 10, 1995
(commencement of
operations) to
November 30, 1995
- ----------------------------------------------------
Class M Shares Amount
- ----------------------------------------------------
Shares sold 70,965 $622,165
- ----------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 1,190 10,457
- ----------------------------------------------------
72,155 632,622
Shares
repurchased (6,587) (57,552)
- ----------------------------------------------------
Net increase 65,568 $575,070
- ----------------------------------------------------
Note 5
Acquisition of Putnam New York Intermediate Tax Exempt Fund
On March 11, 1996, the fund issued 262,921 and 193,968 of class A and
class B shares, respectively, to shareholders of New York Intermediate
Tax Exempt Fund to acquire that fund's net assets in a tax-free exchange
approved by the shareholders. The assets of the fund and New York
Intermediate Tax Exempt on March 11, 1996, valuation date, were
$2,150,121,682 and $3,998,472, respectively. On March 11, 1996,
New York Intermediate Tax Exempt Fund had unrealized appreciation
of $130,627.
The aggregate net assets of the fund immediately following the
acquisition were $2,154,120,154.
Results of March 7, 1996 shareholder meeting
(Unaudited)
An annual meeting of shareholders of the fund was held on
March 7, 1996.
Approval of the Agreement and Plan of Reorganization providing for the
transfer of all of the assets of Putnam New York Intermediate Tax Exempt
Fund (the "Fund") to Putnam New York Tax Exempt Income Fund (the "Income
Fund") in exchange for shares of the liabilities of the Income Fund, and
the assumption by the Income Fund of all of the liabilities of the Fund,
and the distribution of such shares to the shareholders of the Fund in
complete liquidation of the Fund.
% of Outstanding % of Shares
No. of Shares Shares Voted
- ------------------------------------------------------------------------
Affirmative 368,226 70.793% 90.784%
Against 17,647 3.392% 4.351%
Abstain 19,733 3.794% 4.865%
- ------------------------------------------------------------------------
TOTAL 405,606 77.98% 100.00%
A Putnam perspective on risk and reward
You've probably been told how important it is to understand the
relationship between an investment's potential rewards and its
accompanying risks. Given the cautionary nature of such instructions,
it may take most investors a while to realize that risk has a
positive side.
Every risk signals a potential reward. Selecting only those investments
that offer the greatest degree of security generally leads to only
modest rewards. Furthermore, even insured or guaranteed investments may
be subject to changes in their rates of return or, in some cases, in
their principal values. Experienced investors know that no investment is
truly risk free and are therefore willing to take on some measure of
risk in order to increase their potential gains.
The greater the risk, the greater the potential reward. Accepting an
appropriate level of investment risk can give you a better chance of
outpacing inflation over time and seeking to maximize your investment's
return. How much risk? Your financial advisor's feedback and your time
horizon can make all the difference in determining how much risk is
compatible with your investment goals and your peace of mind.
* FITTING YOUR FUND SELECTION TO YOUR
RISK TOLERANCE
How do you find the right balance between investment risks and their
potential rewards? It's helpful to understand the types of risks that
can apply to different types of investments, and to look at your own
portfolio with this perspective.
For short-term goals, your first priority may be managing market risk.
Longer-term investors may be more concerned with inflation risk. And all
income-oriented investors should consider interest-rate, credit, and
prepayment risks carefully. Within each of Putnam's four investment
categories, you can select funds with differing levels of risk and
reward potential to customize your portfolio.
This list covers only the most general types of risks; however, each
investment will also have its own specific risks. You will find a more
detailed discussion of these risk considerations in each fund's
prospectus.
* A RUNDOWN OF RISK TYPES
MARKET RISK Most important for stock funds, but relevant to all funds,
this is a measure of how sensitive a fund's holdings are to changes in
general market conditions. Remember, though, that securities that lose
value quickly in market declines may also show the strongest gains in
more favorable environments.
INTEREST-RATE RISK Since bond prices fall as interest rates rise, this
type of risk is a particular concern for fixed-income inves-
tors. However, interest-rate increases can also have a substantial
negative effect on the stock market.
INFLATION RISK If your investments cannot keep pace with inflation, your
money will begin to lose its purchasing power. Stock investments are
generally considered among the best ways of addressing inflation risk
over the long term.
CREDIT AND PREPAYMENT RISK Credit risk is the concern that the
security's issuer will not be able to meet its payment, while prepayment
risk involves the premature payoff of a loan, with a resulting loss of
interest income. Professional management and in-depth research are
invaluable in managing both these risks.
LIQUIDITY RISK Not all investments can be readily converted into cash at
their perceived market values. Liquidity risk can affect the price of
securities held in the fund's portfolio and, thus, the fund's share
prices.
Fund information
INVESTMENT MANAGER
Putnam Investment
Management, Inc.
One Post Office Square
Boston, MA 02109
MARKETING SERVICES
Putnam Mutual Funds Corp.
One Post Office Square
Boston, MA 02109
CUSTODIAN
Putnam Fiduciary Trust Company
LEGAL COUNSEL
Ropes & Gray
TRUSTEES
George Putnam, Chairman
William F. Pounds, Vice Chairman
Jameson Adkins Baxter
Hans H. Estin
John A. Hill
Ronald J. Jackson
Elizabeth T. Kennan
Lawrence J. Lasser
Robert E. Patterson
Donald S. Perkins
George Putnam, III
Eli Shapiro
A.J.C. Smith
W. Nicholas Thorndike
OFFICERS
George Putnam
President
Charles E. Porter
Executive Vice President
Patricia C. Flaherty
Senior Vice President
John D. Hughes
Senior Vice President and Treasurer
Lawrence J. Lasser
Vice President
Gordon H. Silver
Vice President
Gary N. Coburn
Vice President
James E. Erickson
Vice President
David J. Eurkus
Vice President and Fund Manager
William N. Shiebler
Vice President
John R. Verani
Vice President
Paul M. O'Neil
Vice President
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.
Shares of mutual funds are not deposits or obligations of, or guaranteed
or endorsed by, any financial institution, are not insured by the
Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board
or any other agency, and involve risk, including the possible loss of
principal amount invested.
PUTNAM INVESTMENTS
The Putnam Funds
One Post Office Square
Boston, Massachusetts 02109
- -------------
Bulk Rate
U.S. Postage
PAID
Putnam
Investments
- -------------
25852-030/345/681 7/96
