PUTNAM
NEW YORK
TAX EXEMPT
INCOME FUND
[Artwork]
ANNUAL REPORT
November 30, 1995
[Putnam Logo]
Boston * London * Tokyo
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FUND HIGHLIGHTS
"Today, long-term muni yields stand at 88% of Treasury yields, down slightly
from the summer peak but still above customary levels in the low- to mid-80%
range. To many investment pros, that narrower-than-normal spread between muni
and Treasury yields spells bargains." *
-- MONEY, November 1995
"To many observers, the chances of sweeping tax overhaul are slim. Even if a
flat tax passes, New York municipal bonds should fare better than other states'.
Comparatively high state and local tax rates make it likely that these bonds
would be hurt to a lesser degree than others around the nation."
-- David Eurkus, manager, Putnam New York Tax Exempt Fund
* Interest and principal payments on Treasuries are backed by the full faith and
credit of the U.S. government, while those of municipal bonds, of course, are
not.
CONTENTS
4 Report from Putnam Management
8 Fund performance summary
14 Portfolio holdings
21 Financial statements
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FROM THE CHAIRMAN [Photograph of George Putnam]
* (C) Karsh, Ottawa
DEAR SHAREHOLDER:
TAX-EXEMPT BOND INVESTORS WILL LONG REMEMBER 1995 AS A YEAR OF HIGHS AND LOWS,
EMOTIONALLY AS WELL AS IN THE MARKET. THE YEAR BEGAN AS THE BOND MARKET WAS CO-
MING OFF ONE OF ITS WORST PERIODS IN RECENT MEMORY. JUST AS THINGS BEGAN TO LOOK
BRIGHTER FOR TAX-EXEMPT BONDS, TALK IN WASHINGTON ABOUT A FLAT TAX SPARKED A WA-
VE OF UNCERTAINTY AMONG INVESTORS.
CONCERNED THAT SUCH A TAX WOULD ELIMINATE THE FEDERAL INCOME TAX ADVANTAGE OF
MUNICIPAL BONDS, THEY STAYED AWAY FROM THE MARKET IN DROVES. UNDETERRED BY THE
NEGATIVE SENTIMENT, PUTNAM NEW YORK TAX EXEMPT INCOME FUND'S MANAGERS ACTUALLY
TOOK ADVANTAGE OF IT, LOCKING IN GAINS AND ACQUIRING NEW HOLDINGS AT ATTRACTIVE
PRICES.
BY SPRING, INVESTORS HAD REALIZED HOW REMOTE PASSAGE OF ANY TAX REFORM LEGISLA-
TION ACTUALLY WAS DURING AN ELECTION YEAR. AS THE FUND CLOSED ITS FISCAL YEAR ON
NOVEMBER 30, 1995, THE MARKET WAS ON A SOLID UPWARD PATH AGAIN.
HOWEVER, BECAUSE OF THE INTERRUPTION OVER THE FLAT-TAX PROPOSALS, YOUR FUND'S
MANAGEMENT TEAM BELIEVES FURTHER GROUND WILL BE REGAINED IN FISCAL 1996. THE RE-
PORT THAT FOLLOWS PROVIDES MORE DETAIL.
RESPECTFULLY YOURS,
GEORGE PUTNAM
CHAIRMAN OF THE TRUSTEES
JANUARY 17, 1996
* (C) Copyright.
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REPORT FROM THE FUND MANAGER
DAVID EURKUS
Municipal-bond investors who remained calm in the face of the media's hype about
various tax-reform proposals during 1995 were amply rewarded for their patience.
Strong technical factors -- including low inflation and relatively low interest
rates -- helped push performance of tax-free investments to double-digit levels.
In light of the market woes of 1994, this outcome couldn't have been more welco-
me. Putnam New York Tax Exempt Income Fund's class A shares posted a total re-
turn of 17.95% and class B shares 17.26% at net asset value for the 12 months
ended November 30, 1995.
STRONG RELATIVE PERFORMANCE: A MATTER OF PERSPECTIVE
Except for a brief midsummer pause, the broad fixed-income market continued its
impressive run throughout virtually all of the period. Increased investor confi-
dence in the Federal Reserve Board's ability to thwart inflation and effectively
manage economic growth over the long term fueled the gains of most fixed-income
investments.
On an absolute basis, municipal bonds participated in the rally's strength in a
highly respectable fashion. However, their performance relative to taxable in-
vestments may appear somewhat lackluster. This is largely because of investors'
lingering concerns about the perceived effects of the flat-tax proposal introdu-
ced in April. In its purest form, a flat tax would deprive municipal bonds of
their beneficial tax treatment.
The flat-tax distraction prevented your fund's investments from attaining the
full price appreciation potential presented by the favorable investment environ-
ment. However, the municipal bond market's returns during the 12 months ended
November 30, 1995, are best considered in a historical context. In any good
year, the market's performance would have been quite satisfactory and during
1994's bear market, it would have been considered a godsend.
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Furthermore, on a tax-equivalent basis, a New York investor in the combined ma-
ximum federal and New York state income tax bracket of 44.19% would have had to
earn 9.57% and 8.42%, respectively, to match the 5.34% and 4.70% current divi-
dend rates your fund's class A and class B shares produced at net asset value
during the period.
FUND REPOSITIONING EMPHASIZES VALUE AND LOW RISK
The fund has maintained its heavy concentration of high-quality investment-grade
bonds, with the portfolio diversified across more than 194 issues. During the
year, particularly in the later six months, our active monitoring of municipal-
bond market trends identified what we believed to be some attractive income
opportunities, and we were able to reposition the portfolio to take advantage of
them. One such shift exemplifies the fund's search for bonds offering value.
New York City general obligation bonds suffered in the months leading up to and
following the election of a Republican administration committed to budget tigh-
tening. During this period, we increased the fund's weighting in these bonds,
particularly in the 10-year maturity sector. Subsequently, as investors realized
that belt-tightening measures would take time and that Mayor Guiliani and Go-
vernor Pataki could work together to resolve the city's budget crisis, the bonds
rallied,
TOP INDUSTRY SECTORS *
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Airport/Transportantion 14.3
Utilities/Water and Sewerage 13.4
Education 12.3
Health care 8.6
Highways 3.8
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* Based on net assets as of 11/30/95. Holdings will vary over time.
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despite a slight but much expected credit downgrade from A to Baa in July. We
believe these holdings continue to represent attractive value at current levels,
offering solid income potential and relatively low market risk.
FUNDAMENTALS ARE SOUND, VALUATIONS APPEALING
As we enter fiscal 1996, we believe conditions for investing in fixed-income se-
curities should remain hospitable. Subsiding inflation, a benign interest rate
environment, and decelerating economic growth seem likely to continue.
The debate over tax reform is probably the most critical factor that will influ-
ence tax-exempt bond performance over the next 12 months. While further instabi-
lity cannot be ruled out, we believe investors have come to realize that a revi-
sion of the income tax code would not likely occur until after the 1996 presi-
dential election, at which time it would most likely involve a simplification of
the existing system rather than a major overhaul. That said, we are upbeat about
the prospects for the municipal market for several reasons:
First, any time municipal bonds underperform relative to Treasuries -- as they
have during fiscal 1995 -- we believe a buying opportunity exists. Most high-
grade, long-term municipal bonds are providing 90% of the yield that Treasury
bonds are offering, on a before-tax basis. While there can be no assurance, the
failure of municipal bonds to participate in the 1995 rally to the same degree
as their taxable counterparts leaves the potential for further price apprecia-
tion. This, in our opinion, represents attractive value.
Second, new issue supply has been scant in 1995, down by roughly 10% to 15% from
1994 levels, while investor demand for municipal bonds has once again picked up
with the easing of flat-tax concerns. This represents a positive dynamic for
continued price support. Additionally, should interest rates decline and refun-
ding activity begin in earnest, your fund's increased emphasis on noncallable,
high-quality bonds should buoy performance.
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BOND YIELDS: MUNICIPALS VERSUS TREASURIES
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% OF 30-YEAR MUNICIPAL BOND YIELD TO TREASURY BOND YIELD
11/94 86.6
12/94 85.2
1/95 83
2/95 80.7
3/95 80.8
4/95 82.3
5/95 86.6
6/95 90.6
7/95 87.7
8/95 90.5
9/95 91.7
10/95 90.7
11/95 90.7
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Chart shows the yield of an average 30-year general obligation municipal bond as
a percentage of the yield of an average 30-year Treasury bond during the 12 mon-
ths ended 11/30/95. Interest and principal payments of Treasury bonds are backed
by the full faith and credit of the U.S. government, while those of municipal
bonds have no such guarantee. Source: Bloomberg.
Going forward, we will continue to monitor market events carefully as they un-
fold and seek to position your fund to benefit from longer-term trends.
The views expressed here are exclusively those of Putnam Management. They are
not meant as investment advice. Although the described holdings were viewed fa-
vorably as of 11/30/95, there is no guarantee the fund will continue to hold
these securities in the future.
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PERFORMANCE SUMMARY
Performance should always be considered in light of a fund's investment strate-
gy. Putnam New York Tax Exempt Income Fund is designed for investors seeking a
high level of current income free from federal, New York state and New York City
income taxes as Putnam Management believes is 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, assum-
ing you held the shares through the entire period and reinvested all distribu-
tions in the fund.
TOTAL RETURN FOR PERIODS ENDED 11/30/95
CLASS A CLASS B CLASS M
INCEPTION DATE (9/2/83) (1/4/93) (4/10/95)
NAV POP NAV CDSC NAV POP
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1 year 17.95% 12.36% 17.26% 12.26% --% --%
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5 years 51.14 43.88 -- -- -- --
Annual average 8.61 7.55 -- -- -- --
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10 years 135.85 124.66 -- -- -- --
Annual average 8.96 8.43 -- -- -- --
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Life of class 215.45 200.51 16.90 12.90 5.44 1.96
Annual average 9.83 9.40 5.53 4.27 -- --
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COMPARATIVE RETURNS FOR PERIODS ENDED 11/30/95
LEHMAN BROS.
MUNICIPAL BOND CONSUMER
BOND INDEX PRICE INDEX
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1 year 18.90% 2.61%
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5 years 51.82 14.80
Annual average 8.71 2.80
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10 years 141.83 40.92
Annual average 9.23 3.49
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Life of class A 225.08 53.29
Annual average 10.10 3.55
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Life of class B 23.88 8.24
Annual average 7.66 2.77
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Life of class M 8.66 1.45
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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 net asset
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 5%
maximum contingent deferred sales charge.
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GROWTH OF A $10,000 INVESTMENT
CUMULATIVE TOTAL RETURN OF A $10,000 INVESTMENT SINCE 11/30/85
FUND'S CLASS A LEHMAN BROS. CONSUMER
SHARES AT POP MUNICIPAL BOND INDEX PRICE INDEX
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11/30/85 $ 9525 $ 10000 $ 10000
11/30/86 11568 12070 10128
11/30/87 11380 12043 10587
11/30/88 12858 13323 11037
11/30/89 14243 14791 11550
11/30/90 14865 15929 12275
11/30/91 16715 17564 12642
11/30/92 18487 19325 13028
11/30/93 20709 21467 13376
11/30/94 19048 20339 13734
11/30/95 $ 22466 $ 24183 $ 14092
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Past performance is no assurance of future results. A $10,000 investment in the
fund's class B shares at inception on 1/4/93 would have been valued at $11,690
on 11/30/95 ($11,290 with a redemption at the end of the period). A $10,000 in-
vestment in the fund's class M shares at inception on 4/10/95 would have been
valued at $10,544 at net asset value and $10,196 at public offering price on
11/30/95.
PRICE AND DISTRIBUTION INFORMATION
12 months ended 11/30/95
Class A Class B Class M
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DISTRIBUTIONS (NUMBER): 12 12 8
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Income $0.494452 $0.429989 $0.287041
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Capital gains (1)
Long-term -- -- --
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Short-term -- -- --
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Total $0.494452 $0.429989 $0.287041
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SHARE VALUE: NAV POP NAV NAV POP
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11/30/94 $8.05 $8.45 $8.02 -- --
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4/10/95 (inception
of class M shares) -- -- -- $8.79 $9.09
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11/30/95 $8.97 $9.42 $8.95 $8.97 $9.27
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CURRENT RETURN:
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End of period
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Current dividend rate (2) 5.34% 5.09% 4.70% 5.05% 4.88%
Taxable equivalent (3)(a) 9.57 9.12 8.42 9.04 8.75
Taxable equivalent (3)(b) 10.06 9.58 8.85 9.50 9.19
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Current 30-day SEC yield (4) 4.91 4.67 4.26 4.61 4.46
Taxable equivalent (3)(a) 8.80 8.37 7.63 8.26 7.99
Taxable equivalent (3)(b) 9.24 8.79 8.02 8.68 8.40
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(1) Capitals gains are taxable for federal and, in most cases, state tax purpo-
ses. 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 fe-
deral tax rate of 44.19% of (b) the maximum combined federal, New York State and
New York City tax rates of 46.88%. Results for investors subject to lower tax
rates would not be as advantageous. (4) Based on investment income, calculated
using SEC guidelines.
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TOTAL RETURN FOR PERIODS ENDED 12/31/95
CLASS A CLASS B CLASS M
(9/2/83) (1/4/93) (4/10/95)
NAV POP NAV CDSC NAV POP
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1 year 15.51% 10.04% 14.71% 9.71% -- --
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5 years 52.37 45.20 -- -- -- --
Annual average 8.79 7.74 -- -- -- --
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10 years 132.26 121.16 -- -- -- --
Annual average 8.79 8.26 -- -- -- --
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Life of class 218.64 203.56 18.02 14.02 6.48% 2.96%
Annual average 9.85 9.42 5.70 4.49 -- --
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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 net asset
value fluctuate so that an investor's shares, when sold, may be worth more or
less than their original cost.
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 recemption.
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 liabili-
ties, devided 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.
LEHMAN BROTHERS MUNICIPAL BOND INDEX is an unmanaged list of long-term fixed-
rate investment-grade tax-exempt bonds representative of the municipal bond mar-
ket. 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.
COMSUMER PRICE INDEX (CPI) is a commonly used measure of inflation; it does not
represent and investment return.
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A PUTNAM PERSPECTIVE ON RISK AND REWARD
You've probably been told how important it is to understand the relationship be-
tween an investment's potential reward 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 change 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 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 change
of outpacing inflation over time and seeking to maximize your investment's re-
turn. 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 in-
vetment goals and your peace of mind.
FITTING YOUR FUND SELECTION TO YOUR RISK TOLERANCE
How do you find the right balance between investment risk and their potential
rewards? It's helpful to understand the types of risks that can apply to di-
fferent types of investments, and to look at your own portfolio with this pers-
pective.
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 port-
folio.
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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 investors. 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 consi-
dered 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 prema-
ture 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.
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REPORT OF INDEPENDENT ACCOUNTANTS
For the fiscal year ended November 30, 1995
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, 1995, and the related statement of operations for the year
then ended, the statements 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 indi-
cated therein. These financial statements and financial highlights are the res-
ponsibility of the fund's management. Our responsibility is to express an opi-
nion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing stan-
dards. Those standards require that we plan and perform the audit to obtain rea-
sonable assurance about whether the financial statements and financial high-
lights are free from 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 No-
vember 30, 1995, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates ma-
de by management, as well as evaluating the overall financial statement presen-
tation. 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, 1995, the results of its ope-
rations 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, 1996
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PORTFOLIO OF INVESTMENTS OWNED
November 30, 1995
KEY TO ABBREVIATIONS
FGIC - Federal Guaranty Insurance Company
FRB - Floating Rate Bonds
FSA - Financial Security Assurance
IFB - Inverse Floating Rate Bonds
G.O. Bonds - General Obligation Bonds
VRDN - Variable Rate Demand Notes
AMBAC - AMBAC Indemnity Corporation
FHA - Federal Housing Administration
MBIA - Municipal Bond Investors Assurance Corporation
MUNICIPAL BONDS AND NOTES (100.4%)*
PRINCIPAL AMOUNT RATINGS** VALUE
NEW YORK (93.9%)
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$ 5,300,000 34th Street Partnership Inc. Rev. Bonds
(34th Street Business Impt.), 5 1/2s, 1/1/23 A $ 5,187,375
5,000,000 Albany, Parking Auth. Rev. Bonds (Green &
Hudson St. Garage), Ser. A, 7.15s, 9/15/16 A 5,387,500
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 3,401,250
Battery Park, City Auth. Rev. Bonds
14,500,000 7.7s, 5/1/15 AAA 16,403,125
29,125,000 Ser. A, 5 1/4s, 11/1/17 AA 27,523,125
20,645,000 Ser. A, 5s, 11/1/13 AA 19,251,463
7,400,000 Erie Cnty. 4 1/2s, 9/20/96 VMIGI 7,465,564
4,750,000 Grand Central Dist. Mgmt. Assn. Inc.
(Business Impt. Dist.), 5 1/4s, 1/1/22 A 4,506,563
5,000,000 Metro Trans. Auth. FRB Ser. 1993B,
AMBAC 6.017s, 7/1/08 (acquired 6/30/93,
cost $5,158,013)++ AAA 5,425,000
Metro. Trans. Auth. Svcs. Contract Fac. Rev.
Bonds (Trans. Fac.)
3,290,000 Ser. 3, 7 1/2s, 7/1/16 AAA 3,791,725
3,750,000 Ser. 3, 7 3/8s, 7/1/08 Baa 4,364,063
3,000,000 Ser. 6, 7s, 7/1/09 Baa 3,303,750
30,065,000 Ser. P, 5 3/4s, 7/1/15 Baa 29,801,931
10,400,000 Ser. 7, 5 5/8s, 7/1/16 Baa 10,166,000
16,995,000 Ser. O, 5 1/2s, 7/1/17 Baa 16,421,419
3,500,000 Ser. 7, 4 3/4s, 7/1/19 Baa 3,018,750
Metro. Trans. Auth. Svcs. Contract Fac.
Rev Bonds
8,000,000 (Commuter Fac.), Ser. O, 5 1/2s, 7/1/17 Baa 7,730,000
5,000,000 (NY Svc. Contract Trans. Facs.), Ser. 7,
5.45s, 7/1/07 BBB 5,043,750
5,000,000 Metro. Transn. Auth. Trans. Rev. Bonds
Ser. O, MBIA, 6 3/8s, 7/1/20 AAA 5,356,250
Muni. Assistance Corp. for the City of NY
Rev. Bonds
4,500,000 Ser. 61, 5 3/4s, 7/1/08 AA 4,612,500
11,795,000 Ser. 62, 5 1/2s, 7/1/08 AA 11,971,925
<PAGE>
MUNICIPAL BONDS AND NOTES
PRINCIPAL AMOUNT RATINGS** VALUE
NEW YORK (Continued)
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$ 500,000 NY City, Cultural Res. VRDN (American
Museum of Natural History), Ser. B, MBIA,
2.1s, 4/1/21 AAA $ 500,000
NY City, G.O. Bonds
15,285,000 Ser. E, 5.4s, 2/15/03 BBB 15,189,469
11,200,000 Ser. D, Group B, 8 1/4s, 8/1/11 Baa 13,062,000
12,325,000 Ser. B, 8 1/4s, 6/1/05 Baa 14,558,906
20,195,000 Ser. A, 8s, 8/15/19 Baa 24,082,538
10,000,000 Ser. D, Group A, 8s, 8/1/03 Baa 11,512,500
5,575,000 Ser. D, 7.65s, 2/1/08 Baa 6,132,500
3,455,000 Ser. E, 7.6s, 2/1/05 Baa 3,843,688
4,730,000 Ser. F, 7.6s, 2/1/05 Baa 5,273,950
26,000,000 Ser. B, 7 1/2s, 2/1/06 Baa 28,795,000
20,000,000 Ser. B, 7 1/2s, 2/1/02 Baa 22,150,000
8,425,000 Ser. D, 6 1/2s, 2/15/05 BBB 8,930,500
25,150,000 Ser. E, 6 1/2s, 2/15/05 BBB 26,659,000
20,150,000 Ser. E, 6 1/2s, 2/15/04 BBB 21,359,000
15,490,000 Ser. D, 5.4s, 2/15/03 BBB 15,393,188
18,800,000 Ser. F, 3s, 11/15/00 Baa 17,014,000
2,000,000 NY City, Hsg. Dev. Corp. Mtge. VRDN
(Multi Fam. Tribeca Towers), Ser. A,
3.55s, 12/15/24 A 2,000,000
1,300,000 NY City, Hsg. Dev. Corp. Special Obligation
VRDN (East 96th St. Project), Ser. A,
3.9s, 8/1/15 VMIGI 1,300,000
15,625,000 NY City, Ind. Dev. Agcy. Special Fac. Rev.
Bonds (American Airlines Inc., Project),
6.9s, 8/1/24 Baa 16,660,156
9,100,000 NY City, Indl. Dev. Agcy. Civic Fac. Rev.
Bonds (Rockefeller Fndtn. Project), 5 3/8s,
7/1/23 AAA 9,213,750
NY City, Muni. Fin. Auth. Wtr. & Swr.
Syst. FRB
13,000,000 10.71s, 6/15/11(acquired 8/9/91,
cost $13,587,860)++ AAA 19,288,750
5,000,000 Ser. A, 6 3/4s, 6/15/17 A 5,406,250
33,820,000 Ser. G, FGIC, 9.345s, 6/15/24 A 33,820,000
17,500,000 MBIA, 9.345s, 6/15/08 AAA 17,850,000
12,000,000 MBIA, 5.35s, 6/15/12 AAA 11,835,000
5,000,000 NY Hsg. Corp. Rev. Bonds, 5 1/2s, 11/1/10 AA 5,012,500
NY State Dorm. Auth. Court Facs. Lease
Rev. Bonds
6,980,000 Ser. A, 5 5/8s, 5/15/13 BBB 6,875,300
7,610,000 Ser. A, 5.3s, 5/15/07 BBB 7,505,363
NY State Dorm. Auth. IFB
13,000,000 (Cornell U.), 10.22s, 7/1/30(acquired 8/9/91,
cost $13,315,900)++ AA 16,380,000
9,000,000 (City U. Syst.), Ser. F, 7 7/8s, 7/1/17 BBB 10,503,090
5,000,000 (NY Dept of Ed.), 7 3/4s, 7/1/21 Baa 5,681,250
3,000,000 NY State Dorm. Auth. Rev. Bonds (Cons.
City U. Syst.) Ser. A, 5 3/4s, 7/1/09 BBB 3,037,500
NY State Dorm. Auth. Rev. Bonds
9,000,000 (State U. Edl. Fac.), Ser. A, 7 5/8s, 5/15/05 Baa 10,372,500
18,800,000 (City U. Syst.), Ser. C, 7 1/2s, 7/1/10 A 22,489,500
<PAGE>
MUNICIPAL BONDS AND NOTES
PRINCIPAL AMOUNT RATINGS** VALUE
NEW YORK (Continued)
- -------------------------------------------------------------------------------
$ 4,000,000 (State U. Athletic Fac.), 7 1/4s, 7/1/21 A $ 4,410,000
4,465,000 (U. of Rochester), 6 1/2s, 7/1/09 A 4,660,344
12,200,000 (State U. Edl. Fac.), Ser. A, 5 7/8s, 5/15/11 BBB 12,581,250
6,975,000 (Construction City U. Syst.), 2nd Gen,
Ser. A, 5 3/4s, 7/1/13 Baa 7,001,156
11,615,000 (Upstate Cmnty. Colleges), Ser. A,
5.7s, 7/1/21 Baa 11,513,369
4,000,000 (Upstate Cmnty. Colleges), Ser. A,
5 5/8s, 7/1/14 Baa 3,925,000
3,205,000 (U. Rochester), Mem. Hosp., MBIA,
5 1/2s, 7/1/21 AAA 3,196,988
3,000,000 (State U. Edl. Facs.), Ser. A, 5 1/2s,
5/15/13 Baa 2,940,000
8,000,000 (State U. Edl. Facs.), Ser. A, 5 1/2s,
5/15/10 BBB 7,980,000
5,975,000 (City U.), Ser. F, 5 3/8s, 7/1/07 BBB 5,930,188
38,600,000 (State U. Edl. Fac.), Ser. A, 5 1/4s, 5/15/15 Baa 36,477,000
13,850,000 (Mt. Sinai Medical School), Ser. A,
MBIA, 5s, 7/1/21 AAA 12,967,063
11,000,000 (City U. Syst.), Ser. C, 5s, 7/1/17 Baa 9,955,000
4,020,000 (Columbia U.), 5s, 7/1/15 Aaa 3,834,075
15,985,000 (Cornell U.), 5.7s, 7/1/15 AA 15,625,338
3,485,000 (State U. Edl. Facs.), Ser. B, 5.7s, 5/15/04 BBB 3,646,181
23,864,000 (State U. Edl. Fac.), Ser. B, zero%, 5/15/10 Baa 10,738,800
48,000,000 (State U. Edl. Fac.), Ser. B, zero%, 5/15/09 Baa 23,040,000
54,520,000 (State U. Edl. Fac.), Ser. B, zero%, 5/15/08 Baa 27,396,300
10,000,000 (State U. Edl. Fac.), Ser. B, zero%, 5/15/07 Baa 5,350,000
10,580,000 (State U. Edl. Fac.), Ser. B, zero%, 5/15/06 Baa 6,043,825
10,000,000 MBIA, 5 3/4s, 7/1/14 AAA 10,200,000
13,985,000 Ser. A, 5 1/2s, 5/15/10 BBB 13,845,150
5,100,000 (Oxford U. Press Inc.), 3 3/4s, 7/1/23 VMIGI 5,100,000
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 8,266,455
5,000,000 (Cons. Edison Co. NY Inc. Project), Ser. A,
7 1/8s, 12/1/29 A 5,606,250
10,000,000 NY State Energy Research & Dev. Auth. Gas
Facs. IFB (Brooklyn Union Gas Co.), Ser. B,
9.626s, 7/1/26 A 12,462,500
NY State Energy Research & Dev. Auth. Poll.
Control Rev. Bonds
10,000,000 (Niagara Mohawk Pwr. Corp.), Ser. A,
FGIC, 7.2s, 7/1/29 Aaa 11,487,500
12,500,000 (Niagara Mohawk Pwr. Corp.), Ser. A,
FGIC, 6 5/8s, 10/1/13 AAA 13,515,625
3,100,000 (Niagara Mohawk Power Project), Ser A,
3.95s, 7/1/15 A 3,100,000
7,100,000 (NY Elec. Gas), Ser. D, 4 1/2s, 10/1/29 VMIGI 7,100,000
12,900,000 (NY State Elec. & Gas Co.), Ser. C,
3.55s, 6/1/29 VMIGI 12,900,000
8,750,000 NY State Energy Resh. & Dev. Auth. Rev.
Bonds (Long Island Lighting Co. Project),
Ser. B, 7.15s, 2/1/22 BB 8,979,688
NY State Env. Fac. Corp. Poll. Control Rev.
Bonds (State Wtr. Revolving Fund)
8,655,000 Ser. A, 7 1/2s, 6/15/12 Aa 9,899,156
5,050,000 Ser. E, 6 7/8s, 6/15/10 Aa 5,637,063
<PAGE>
MUNICIPAL BONDS AND NOTES
PRINCIPAL AMOUNT RATINGS** VALUE
NEW YORK (Continued)
- -------------------------------------------------------------------------------
$ 6,870,000 Ser. B, 6.65s, 9/15/13 AA $ 7,651,463
5,265,000 Ser. A, 6.55s, 9/15/10 AAA 5,877,056
41,105,000 Ser. A, 5 7/8s, 6/15/14 AA 42,184,006
NY State Hsg. Corp. Rev. Bonds
21,245,000 5s, 11/1/18 AA 19,412,619
13,135,000 5s, 11/1/13 AA 12,215,550
16,750,000 Ser. A, zero%, 11/1/10 AAA/P 13,797,813
NY State Hsg. Fin. Agcy. Rev. Bonds
32,000,000 Ser. A, 8s, 11/1/08 Baa 36,480,000
9,440,000 (Multi-Fam. Hsg. Insd. Mtge. Program),
Ser. A, 7s, 8/15/22 AA 10,053,600
5,570,000 (Multi-Fam. Mtge.), Ser. B, AMBAC,
6.35s, 8/15/23 AAA 5,771,913
NY State Hsg. Fin. Agcy. Svc Contract
Obligation Rev. Bonds
3,000,000 Ser. A, 6 1/4s, 9/15/10 BBB 3,101,250
7,500,000 Ser. C, 7.3s, 3/15/21 AAA 8,756,250
10,000,000 Ser. C, 6s, 9/15/21 Baa 10,050,000
NY State Local Gov't. Assist. Corp. Rev. Bonds
13,800,000 Ser. B, 7 1/2s, 4/1/20 AAA 16,099,632
5,000,000 Ser. A, 7 1/4s, 4/1/18 AAA 5,775,000
10,000,000 Ser. A, 7 1/8s, 4/1/21 AAA 11,637,500
11,900,000 Ser. A, 6 1/2s, 4/1/20 A 12,658,625
17,605,000 Ser. B, 5 3/8s, 4/1/16 A 17,186,881
13,750,000 Ser. A, 5 1/4s, 4/1/19 A 13,114,063
35,415,000 Ser. E, 5 1/4s, 4/1/16 A 34,573,894
10,125,000 Ser. D, 5s, 4/1/23 A 9,352,969
3,255,000 Ser. C, 5s, 4/1/21 A 3,031,219
10,000,000 Ser. E, 5s, 4/1/21 A 9,375,000
7,210,000 Ser. C, MBIA, zero%, 4/1/14 AAA 2,649,675
NY State Med. Care Fac. Fin. Agcy. Rev. Bonds
12,730,000 (Hosp. & Nursing Home), Ser. B, FHA
Insd., 8s, 2/15/28 AAA 14,130,300
5,000,000 (Buffalo Gen. Hosp.), Ser. C, FHA Insd.,
7.7s, 2/15/22 AAA 5,568,750
8,750,000 (Hosp. & Nursing Home Insd. Mtge.),
Ser. A, FHA Insd., 8s, 2/15/27 AAA 9,482,813
2,780,000 (Mental Hlth. Svcs. Fac.) Ser. A, 8 7/8s,
8/15/07 BBB 3,037,150
3,230,000 (Mental Hlth. Svcs. Fac.) Ser. A, 8 7/8s,
8/15/97 AAA 3,557,038
5,805,000 (Mental Hlth. Svcs. Fac.) Ser. B, 7 7/8s,
8/15/20 A 6,624,956
7,985,000 (Mental Hlth. Svcs. Fac.) Ser. B, 7 7/8s,
8/15/20 AAA 9,352,431
7,275,000 (Mental Hlth. Svcs. Fac.) Ser. A, 7/8s,
2/15/19 Baa 8,038,875
22,525,000 (Prebyterian Hosp.) Ser. A, FHA Insd., 7.7s,
2/15/25 AAA 26,213,469
6,180,000 (Mental Hlth. Svcs. Fac.) Ser. B, 7 5/8s,
8/15/17 Baa 6,952,500
24,775,000 (Mental Hlth. Svcs. Fac.) Ser. A, 7 1/2s,
2/15/21 AAA 28,831,906
18,500,000 (St. Luke's Hosp.) Ser. B, FHA Insd., 7.45s,
2/15/29 AAA 21,090,000
3,000,000 (Hosp. & Nursing Home), Ser. A, FHA Insd.,
6 7/8s, 2/15/32 AA 3,225,000
<PAGE>
MUNICIPAL BONDS AND NOTES
PRINCIPAL AMOUNT RATINGS** VALUE
NEW YORK (Continued)
- -------------------------------------------------------------------------------
$ 6,625,000 (Methodist Hosp. & Nursing Home), Ser. A,
FHA Insd., 6.7s, 8/15/23 AA $ 7,121,875
7,325,000 Ser. A, AMBAC, 6 1/2s, 8/15/29 AAA 7,883,531
10,000,000 (Hosp. & Nursing Mtge.), Ser. B, FHA,
6 1/8s, 8/15/24 AAA 10,337,500
6,850,000 (Hosp. & Nursing Home Insd. Mtge.) Ser. C,
MBIA, 5 3/4s, 8/15/19 AAA 6,935,625
12,140,000 (Mtge. St. Lukes-Roosevelt), MBIA,
5 5/8s, 8/15/18 AAA 12,079,300
11,000,000 (Presbyterian Hosp.) MBIA, 5 3/8s, 2/15/25 AAA 10,780,000
6,000,000 (Mental Health ), Ser. D, FGIC,
5 3/8s, 8/15/13 AAA 5,940,000
4,785,000 (Mental Hlth. Svcs. Fac.), Ser. D,
5 1/4s, 8/15/23 Baa 4,372,294
24,700,000 NY State Med. Care Facs. Fin. Agcy. FRB
(Monterfiore Med. Ctr.), Ser. A, MBIA
10.10s, 2/15/24 ($21,400,000 par acquired
10/3/91, cost $22,955,243, $3,300,000 par
acquired 4/8/92, cost $3,546,169)++ AAA 29,269,500
NY State Med. Care Facs. Fin. Agcy. VRDN
2,600,000 (Lenox Hill Hosp.), Ser. A, 3.45, 11/1/08 VMIGI 2,600,000
5,500,000 (Mental Hlth. Svcs. Fac.), Ser A, AMBAC,
5.8s, 8/15/22 AAA 5,603,125
NY State Mtge. Agcy. Rev. Bonds
4,130,000 (Homeownership Dev. Program), Ser. QQ,
7.7s, 10/1/12 Aa 4,501,700
5,000,000 5.65s, 4/1/15 Aa 4,900,000
4,800,000 (Homeowner Mtg.), Ser. 31-A, MBIA,
5 3/8s, 10/1/17 AAA 4,566,000
42,880,000 NY State Mtge. Agcy. Rev. Bonds (Single-Fam.)
Ser. 2, zero%, 10/1/14 Aa 7,337,197
4,250,000 NY State Muni. Bond Bank Agcy. Special
Program Rev. Bonds, Ser. A,6 3/4s, 3/15/11 A 4,595,313
5,400,000 NY State Pwr. Auth. Gen. Rev. Bonds Ser. U,
5 3/4s, 1/1/18 AA 5,400,594
4,200,000 NY State Thru-Way Auth. Gen. Rev. Bonds
Ser. B, MBIA, 5s, 1/1/20 AAA 3,969,000
NY State Thru-Way Auth. Hwy. & Brdg.
Rev. Bonds
17,475,000 Ser. A, MBIA, 5 1/2s, 4/1/15 AAA 17,606,063
10,000,000 Ser. B, MBIA, 5 1/8s, 4/1/15 AAA 9,650,000
NY State Thru-Way Auth. Svc.
Contract Rev. Bonds (Local Hwy. &
Bridge Project)
13,300,000 7 1/4s, 1/1/10 Baa 15,211,875
6,500,000 6 1/4s, 4/1/07 Baa 6,825,000
11,800,000 6s, 1/1/11 BBB 11,918,000
9,525,000 5 1/4s, 4/1/13 Baa 8,953,500
NY State Urban Dev. Corp. Rev. Bonds
9,000,000 (Onondaga Cnty. Convention Project),
7 7/8s, 1/1/20 A 10,597,500
23,250,000 (State Fac.), 7 1/2s, 4/1/20 A 26,999,063
33,250,000 (Correctional Fac.), Ser. 2, 7 1/2s, 1/1/18 A 38,570,000
<PAGE>
MUNICIPAL BONDS AND NOTES
PRINCIPAL AMOUNT RATINGS** VALUE
NEW YORK (Continued)
- -------------------------------------------------------------------------------
$31,955,000 (Correctional Fac.), 5 3/4s, 1/1/13 Baa $ 31,755,281
8,000,000 (Correctional Fac.), AMBAC, Ser. A,
5 1/2s, 1/1/16 Baa 7,740,000
20,700,000 (Correctional Fac.), FSA,
5 1/2s, 1/1/15 Baa 20,053,125
7,710,000 (Correctional Capital Facs.), Ser. A,
5 1/2s, 1/1/09 Baa 7,565,438
5,795,000 (Correctional Facs.), 5 1/4s, 1/1/03 Baa 5,831,219
NY, NY City, Indl. Dev. Agcy. Special Fac.
Rev. Bonds
4,990,000 (Terminal One Group Assn. Project),
6 1/8s, 1/1/24 A 5,027,425
18,250,000 (Terminal One Group Assn. Project),
6s, 1/1/19 A 18,295,625
18,000,000 Nassau Cnty. VRDN Ser. B, 4 1/2s, 4/15/96 VMIG1 18,073,980
5,000,000 Niagara Falls, Brdg. Commn. Toll Rev. Bonds
Ser. B, FGIC, 5 1/4s, 10/1/21 AAA 4,775,000
NY State Urban Dev. Corp. Rev. Bonds
13,500,000 (Correctional Facs.), 5 5/8s, 1/1/07 BBB 13,533,750
7,500,000 (Correctional Facs.), 5 1/4s, 1/1/04 BBB 7,528,125
7,000,000 Onondaga Cnty., Indl. Dev. Agcy. Swr. Fac. Rev.
Bonds (Bristol-Meyers Squibb Co. Project),
5 3/4s, 3/1/24 AAA 7,437,500
2,800,000 Ontario Cnty., Indl. Dev. Agcy. Res. Recvy.
Rev. Bonds (High Tech. Fac. Group),
7 3/8s, 5/1/96 A 2,833,292
26,500,000 Port Auth. NY & NJ Cons. Rev. Bonds 93rd
Ser., 6 1/8s, 6/1/94 AA 28,255,625
8,600,000 Port Auth. NY & NJ Cons. Rev. IFB
9.068s, 8/1/26 (acquired 8/29/91, cost
$8,814,828)++ AA 10,148,000
5,250,000 Port Auth. NY & NJ Cons. VRDN,
7s, 12/1/14 AA 5,453,438
56,000,000 Port Auth. NY & NJ Cons. FGIC,
4.997s, 11/15/20 AAA 53,480,000
10,000,000 Suffolk Cnty., Wtr. Auth. Wtrwks., Rev. Bonds
Ser. B, AMBAC, 5 5/8s, 6/1/16 AAA 10,100,000
Triborough Brdg. & Tunl. Auth. General
Purpose Rev. Bonds
21,480,000 Ser. B, MBIA, zero%, 1/1/22 AAA 5,182,050
8,985,000 Ser. B, MBIA, zero%, 1/1/21 AAA 2,291,175
9,105,000 Ser. B, MBIA, zero%, 1/1/15 AAA 3,243,656
38,750,000 (Convention Ctr. Project), Ser. E, 7 1/4s,
1/1/10 Baa 44,610,927
12,500,000 (Convention Ctr. Project), Ser. E, 6s, 1/1/11 Baa 13,000,000
14,575,000 Ser. P, 5 1/2s, 1/1/19 A 14,502,125
Triborough Brdg. & Tunnel Auth. Special
Oblig. IFB
18,000,000 8.1515s, 1/1/12 (acquired 7/10/92,
cost $18,135,000)++ AAA 20,092,500
3,600,000 FGIC, 3.5s, 1/1/24 VMIG1 3,600,000
----------------
$2,092,975,417
<PAGE>
MUNICIPAL BONDS AND NOTES (Continued)
PRINCIPAL AMOUNT RATINGS** VALUE
PUERTO RICO (6.5%)
- -------------------------------------------------------------------------------
$20,500,000 Puerto Rico Comwlth. Aqueduct & Swr.
Auth. Rev. Bonds Ser. A, 7 7/8s, 7/1/17 Baa $ 22,755,000
3,000,000 Comwlth. of Puerto Rico Hwy. & Transn.
Auth. Hwy. Rev. Bonds Ser. V, 6 5/8s, 7/1/12 A 3,228,750
Comwlth. of Puerto Rico Hwy. & Transn.
Auth. Hwy. VRDN
600,000 Ser. X, 3.3s, 7/1/99 VMIGI 600,000
7,500,000 Ser. X, 5 1/2s, 7/1/08 A 7,546,875
8,000,000 Comwlth. of Puerto Rico Hwy. Auth.
Rev. Bonds, 6 3/4s, 7/1/17 AAA 8,970,000
Puerto Rico Elec. Pwr. Auth. Pwr. IFB
2,500,000 FSA, 7.898s, 7/1/23 AAA 2,678,125
33,000,000 Ser. W, MBIA, 7s, 7/1/07 AAA 38,857,500
8,000,000 Ser. R, 6 1/4s, 7/1/17 A 8,330,000
68,500,000 Ser. N, zero%, 7/1/17 A 19,608,125
11,175,000 Ser. O, zero%, 7/1/17 A 3,198,844
1,207,677 Puerto Rico Hsg. Fin. Corp. Rev. Bonds
(Bayamon Hsg. Dev. Project), FHA,
7.921s, 7/1/21 Baa 1,367,693
13,850,000 Puerto Rico Pub. Bldg. Auth. Rev. Bonds
(Gtd. Pub. Edl. & Hlth. Facs.), Ser. L,
6 7/8s, 7/1/12 AAA 16,031,375
11,350,000 Puerto Rico Tel. Auth. IFB 7.921s, 1/1/20
(acquired 9/25/92, cost $10,981,125)++ A 12,187,063
----------------
145,359,350
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $2,027,155,581)*** $2,238,334,767
- -------------------------------------------------------------------------------
* Percentages indicated are based on net assets of $2,229,224,263.
** The Moody's or Standard & Poor's ratings indicated are believed to be the
most recent ratings available at November 30, 1995 for the securities lis-
ted. 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 November 30, 1995. Securi-
ties rated by Putnam are indicated by "/P" and are not publicly rated. Ra-
tings are not covered by the Report of independent accountants.
++ Restricted securities as to public resale. At the date of acquisition these
securities were valued at cost. There were no outstanding securities of the
same class as those held. Total market value of restricted securities owned
at November 30, 1995 was $112,790,813 or 5.1% of net assets.
*** The aggregate identified cost on a tax cost basis is $2,030,887,973 resul-
ting in gross unrealized appreciation and depreciation of $209,794,196 and
$2,347,402 respectively, or net unrealized appreciation of $207,446,794
The fund had the following industry group concentrations greater than 10% at
November 30,1995 (as a percentage of net assets):
Airport/Transportation 14.3%
Utilities/Water&Sewage 13.4
Education 12.3
The rates shown on VRDN and IFB, which are securities paying variable inte-
rest rates that vary inversely to changes in the market interest rates, are
the current interest rates at November 30,1995, which are subject to change
based on the terms of the security.
The accompanying notes are an integral part of these financial statements.
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1995
ASSETS
- -------------------------------------------------------------------------------
Investments in securities, at value
(identified cost $2,027,155,581) (Note 1) $2,238,334,767
- -------------------------------------------------------------------------------
Cash 65,421
- -------------------------------------------------------------------------------
Interest receivable 36,417,120
- -------------------------------------------------------------------------------
Receivable for shares of the fund sold 1,909,590
- -------------------------------------------------------------------------------
Receivable for securities sold 9,843,267
- -------------------------------------------------------------------------------
TOTAL ASSETS 2,286,570,165
LIABILITIES
- -------------------------------------------------------------------------------
Payable for shares of the fund repurchased 1,827,158
- -------------------------------------------------------------------------------
Payable to securities purchased 48,067,988
- -------------------------------------------------------------------------------
Distributions payable to shareholders 4,199,959
- -------------------------------------------------------------------------------
Payable for compensation of Manager (Note 2) 2,317,268
- -------------------------------------------------------------------------------
Payable for compensation of Trustees (Note 2) 812
- -------------------------------------------------------------------------------
Payable for administrative services (Note 2) 4,571
- -------------------------------------------------------------------------------
Payable for distribution fees (Note 2) 813,766
- -------------------------------------------------------------------------------
Other accrued expenses 114,380
- -------------------------------------------------------------------------------
TOTAL LIABILITIES 57,345,902
- -------------------------------------------------------------------------------
NET ASSETS $2,229,224,263
REPRESENTED BY
- -------------------------------------------------------------------------------
Paid-in capital (Notes 1 and 4) $2,098,608,042
- -------------------------------------------------------------------------------
Undistributed net investment income (Note 1) 1,213,628
- -------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (Note 1) (81,776,593)
- -------------------------------------------------------------------------------
Net unrealized appreciation of investments 211,179,186
- -------------------------------------------------------------------------------
TOTAL -- REPRESENTING NET ASSETS APPLICABLE TO
CAPITAL SHARES OUTSTANDING $2,229,224,263
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE
- -------------------------------------------------------------------------------
Net asset value and redemption price of class A shares
($2,013,022,185 divided by 224,393,540 shares) $8.97
- -------------------------------------------------------------------------------
Offering price per class A share (100/95.25 of $8.97)* $9.42
- -------------------------------------------------------------------------------
Net asset value and offering price of class B shares
($215,614,027 divided by 24,080,694 shares)+ $8.95
- -------------------------------------------------------------------------------
Net asset value and redemption price of class M shares
($588,051 divided by 65,568 shares) $8.97
- -------------------------------------------------------------------------------
Offering price per class M share (100/96.75 of $8.97)** $9.27
- -------------------------------------------------------------------------------
* 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.
** On single retail sales of less than $50,000. On sales of $50,000 or more and
on group sales the offering price is reduced.
+ Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
The accompanying notes are an integral part of these financial statements.
<PAGE>
STATEMENT OF OPERATIONS
Year ended November 30, 1995
TAX EXEMPT INTEREST INCOME $138,133,443
- -------------------------------------------------------------------------------
EXPENSES:
- -------------------------------------------------------------------------------
Compensation of Manager (Note 2) 10,485,165
- -------------------------------------------------------------------------------
Investor servicing and custodian fees (Note 2) 1,553,095
- -------------------------------------------------------------------------------
Compensation of Trustees (Note 2) 51,246
- -------------------------------------------------------------------------------
Reports to shareholders 84,541
- -------------------------------------------------------------------------------
Auditing 109,896
- -------------------------------------------------------------------------------
Legal 37,663
- -------------------------------------------------------------------------------
Postage 210,564
- -------------------------------------------------------------------------------
Registration fees 770
- -------------------------------------------------------------------------------
Administrative services (Note 2) 30,132
- -------------------------------------------------------------------------------
Distribution fees -- class A (Note 2) 3,971,349
- -------------------------------------------------------------------------------
Distribution fees -- class B (Note 2) 1,683,624
- -------------------------------------------------------------------------------
Distribution fees -- class M (Note 2) 989
- -------------------------------------------------------------------------------
Other expenses 89,319
- -------------------------------------------------------------------------------
TOTAL EXPENSES 18,308,353
- -------------------------------------------------------------------------------
Expense reduction (Note 2) (1,810,417)
- -------------------------------------------------------------------------------
NET EXPENSES 16,497,936
- -------------------------------------------------------------------------------
NET INVESTMENT INCOME 121,635,507
- -------------------------------------------------------------------------------
Net realized gain on investments (Notes 1 and 3) 22,164,338
- -------------------------------------------------------------------------------
Net realized loss on futures contracts (Notes 1 and 3) (16,001,116)
- -------------------------------------------------------------------------------
Net realized loss on written options (Notes 1 and 3) (31,779,516)
- -------------------------------------------------------------------------------
Net unrealized appreciation of investments and futures contracts
during the year 262,034,238
- -------------------------------------------------------------------------------
NET GAIN ON INVESTMENT TRANSACTIONS 236,417,944
- -------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $358,053,451
- -------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED NOVEMBER 30
1995 1994
- -------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
- -------------------------------------------------------------------------------
Operations:
- -------------------------------------------------------------------------------
Net investment income $121,635,507 $134,386,692
- -------------------------------------------------------------------------------
Net realized loss on investment transactions (25,616,294) (39,809,864)
- -------------------------------------------------------------------------------
Net unrealized appreciation (depreciation)
of investments 262,034,238 (284,366,608)
- -------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 358,053,451 (189,789,780)
- -------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A (113,360,526) (123,572,963)
Class B (9,815,891) (8,995,974)
Class M (11,640) --
- -------------------------------------------------------------------------------
From net realized gain on investments
Class A -- (12,732,691)
Class B -- (849,699)
- -------------------------------------------------------------------------------
In excess of net realized gain on investments
Class A -- (14,104,706)
Class B -- (941,033)
- -------------------------------------------------------------------------------
Decrease from capital share transactions (Note 4) (80,755,503) (1,157,824)
- -------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 154,109,891 (352,144,670)
- -------------------------------------------------------------------------------
NET ASSETS
- -------------------------------------------------------------------------------
Beginning of year 2,075,114,372 2,427,259,042
- -------------------------------------------------------------------------------
END OF YEAR (including undistributed
net investment income, of
$1,213,628 and $1,461,483, respectively) $2,229,224,263 $2,075,114,372
- -------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
FOR THE PERIOD FOR THE PERIOD
APRIL 10, 1995 JANUARY 4, 1993
(COMMENCEMENT (COMMENCEMENT
OF OPERATIONS) TO OF OPERATIONS) TO
NOVEMBER 30 YEAR ENDED NOVEMBER 30 NOVEMBER 30
1995+ 1995 1994 1993
- ------------------------------------------------------------------------------------------------------------
CLASS M CLASS B
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE
BEGINNING OF PERIOD $8.79 $8.02 $9.37 $8.95
- ------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net investment income .26 .43 .46 .40
- ------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments .21 .93 (1.24) .42
- ------------------------------------------------------------------------------------------------------------
TOTAL FROM INVESTMENT
OPERATIONS .47 1.36 (.78) .82
- ------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income (.29) (.43) (.46) (.40)
- ------------------------------------------------------------------------------------------------------------
Net realized gain on
investments -- -- (.05) --
- ------------------------------------------------------------------------------------------------------------
In excess of net realized
gain on investments -- -- (.06) --
- ------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS (.29) (.43) (.57) (.40)
- ------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $8.97 $8.95 $8.02 $9.37
- ------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN AT
NET ASSET VALUE (%) (a) 5.44(b) 17.26 (8.75) (9.25)(b)
- ------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(in thousands) $588 $215,614 $173,213 $146,665
- ------------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets (%) (c) .65(b) 1.43 1.39 1.28(b)
- ------------------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (%) 3.30(b) 4.95 5.16 4.29(b)
- ------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 73.85 73.85 47.56 26.60
- ------------------------------------------------------------------------------------------------------------
<FN>
+ 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 included amounts
paid through expense offset arrangements. Prior period ratios exclude these amounts. See Note 2.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS (Continued)
(For a share outstanding throughout the period)
YEAR ENDED NOVEMBER 30
1995 1994 1993 1992 1991
- ---------------------------------------------------------------------------------------------------------------------
CLASS A
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE
BEGINNING OF PERIOD $8.05 $9.38 $8.98 $8.75 $8.34
- ---------------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net investment income .49 .53 .53 .57 .58
- ---------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments .92 (1.24) .52 .32 .42
- ---------------------------------------------------------------------------------------------------------------------
TOTAL FROM INVESTMENT
OPERATIONS 1.41 (.71) 1.05 .89 1.00
- ---------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income (.49) (.51) (.53) (.58) (.59)
- ---------------------------------------------------------------------------------------------------------------------
Net realized gain on
investments -- (.05) (.10) (.08) --
- ---------------------------------------------------------------------------------------------------------------------
In excess of net realized
gain on investments -- (.06) (.02) -- --
- ---------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS (.49) (.62) (.65) (.66) (.59)
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $8.97 $8.05 $9.38 $8.98 $8.75
- ---------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN AT
NET ASSET VALUE (%) (a) 17.95 (8.02) 12.02 10.60 12.44
- ---------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(in thousands) $2,013,022 $1,901,901 $2,280,604 $1,960,500 $1,659,383
- ---------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets (%) (c) .78 .75 .76 .66 .63
- ---------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (%) 5.63 5.82 5.67 6.44 6.84
- ---------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 73.85 47.56 26.60 20.13 49.91
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
November 30, 1995
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 diversi-
fied, 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 per-
sonal income tax as Putnam Investment Management, Inc. ("Putnam Management"),
the fund's Manager, a wholly-owned subsidiary of Putnam Investments, Inc. be-
lieves 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 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 commenced operations on April 10, 1995 and 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 dis-
tribution 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 recei-
ve their pro-rata share of the net assets of the fund, if the fund were liquida-
ted. In addition, the Trustees declare separate dividends on each class of sha-
res.
The following is a summary of significant accounting policies consistently fo-
llowed 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 va-
luations provided by a pricing service, approved by the Trustees, which uses in-
formation 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 de-
termined 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). In-
terest 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 which it in-
vests to increase its current returns.
<PAGE>
The potential risk to the fund is that the change in value of the futures and
options contracts may not correspond to the change in value to the hedge instru-
ments. In addition, losses may arise in changes in the value of the underlying
instruments, if there is an illiquid secondary market for the contracts, or if
the conterparty 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 value at the
last sales price, or if no sales are reported, the last bid price for purchased
options and the last ask price for written options. Option trade over-the-coun-
ter are valued using prices supplied by dealers.
E) FEDERAL TAXES It is the policy of the fund to distribute all of its income
within the prescribed time and otherwise comply with the provisions of the In-
ternal 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. Therefo-
re, no provision has been made for federal taxes on income, capital gains or un-
realized appreciation of securities held and 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 the
carryover and the expiration dates are:
LOSS CARRYOVER EXPIRATION
- ----------------------------------------------
$47,172,000 Nov 30, 2002
$ 4,800,000 Nov 30, 2003
F) 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.
These differences include treatment of market discount, realized and unrealized
gains and losses on certain futures contracts and the utilization of capital
loss carryover. Reclassifications are made to the fund's capital accounts to re-
flect income and gains available for distribution (or available capital loss ca-
rryovers) under income tax regulations.
For the year ended November 30, 1995, the fund reclassified $1,304,695 to in-
crease undistributed net investment income and $1,304,695 to increase accumula-
ted net realized loss on investment transactions. The calculation of net invest-
ment income per share in the financial highlights table excludes these adjust-
ments.
G) AMORTIZATION OF BOND PREMIUM AND DISCOUNT Any premium resulting from the pur-
chase of securities in excess of maturity value is amortized on a yield-to-
maturity basis. Discounts on zero coupon bonds, original issue and stepped-
coupon 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 servi-
ces is paid quarterly based on the average net
<PAGE>
assets of the fund for the quarter. 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 to reduction in any year to the extent of certain brokerage co-
mmissions 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 ser-
vices 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 $2,760 and an additional
fee for each Trustees meeting attended. Trustees who are not interested persons
of Putnam Management and who serve on committees of the Trustees receive addi-
tional fees for attendance at certain committee meetings.
During the year ended November 30, 1995, 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 re-
main in the fund and are invested in the fund or in other Putnam funds until
distribution in accordance with the Plan.
Custodial functions for the fund's assets are being provided by Putnam Fiduciary
Trust Company (PFTC), a wholly-owned subsidiary of the Putnam Investments, Inc.
Investor servicing agent functions are provided by Putnam Investor Services, a
division of PFTC.
For the year ended November 30, 1995, fund expenses were reduced by $1,810,417
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 the assets utilized in connection with the expense offset
arrangements in an income producing asset if it had not entered into such arran-
gements.
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 Compa-
ny 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 provi-
ded 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 year ended November 30, 1995 Putnam Mutual Funds Corp., acting as under-
writer received net commissions of $165,649 and $687 from the sale of class A
and class M shares, respectively and received $567,167 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 year ended
November 30, 1995, Putnam Mutual Funds Corp., acting as underwriter received
$3,864 on class A redemptions.
NOTE 3
PURCHASES AND SALES OF SECURITIES
During the year ended November 30, 1995, purchases and sales of investment secu-
rities other than short-term investments aggregated $1,555,744,303 and
$1,664,224,827 respectively. Purchases and sales of
<PAGE>
short-term municipal obligations aggregated $562,734,846 and $468,683,400, res-
pectively. In determining the net gain or loss on securities sold, the cost of
securities has been determined on the identified cost basis.
Written option transactions during the year are summarized as follows:
CONTRACT PREMIUMS
AMOUNTS RECEIVED
- -------------------------------------------------------------------------------
Contracts outstanding at beginning of year $ -- $ --
Options opened 1,952,600,774 33,765,983
Options expired -- --
Options closed (1,952,600,774) (33,765,983)
- -------------------------------------------------------------------------------
Written options outstanding at end of year $ -- $ --
- -------------------------------------------------------------------------------
NOTE 4
CAPITAL SHARES
At November 30, 1995 there was an unlimited number of shares of beneficial inte-
rest authorized. Transactions in capital shares were as follows:
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)
- -------------------------------------------------------------------------------
YEAR ENDED
NOVEMBER 30, 1994
CLASS A SHARES AMOUNT
- -------------------------------------------------------------------------------
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 DECREASE (6,753,912) $(55,144,359)
- -------------------------------------------------------------------------------
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
- -------------------------------------------------------------------------------
YEAR ENDED
NOVEMBER 30, 1994
CLASS B SHARES AMOUNT
- -------------------------------------------------------------------------------
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
- -------------------------------------------------------------------------------
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
- -------------------------------------------------------------------------------
<PAGE>
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 repres-
entative.
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.
<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
Eli Shapiro A.J.C. Smith
W. Nicholas Thorndike
OFFICERS
George Putnam Charles E. Porter
President Executive Vice President
Patricia C. Flaherty Lawrence J. Lasser
Senior Vice President Vice President
Gordon H. Silver James E. Erickson
Vice President Vice President
David J. Eurkus James E. Prusko
Vice President and Fund Manager Vice President
Blake E. Anderson William N. Shiebler
Vice President Vice President
John R. Verani Paul M. O'Neil
Vice President Vice President
John D. Hughes Beverly Marcus
Senior Vice President and Treasurer 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 accompa-
nied by the current prospectus, which gives details of sales charges, investment
objectives, and operating policies of the fund, and the most recent copy of Put-
nam's Quarterly Performance Summary. For more information, or to request a pros-
pectus, call toll free: 1-800-225-1581.
SHARES OF MUTUAL FUNDS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR EN-
DORSED BY, ANY FINANCIAL INSTITUTION, ARE NOT INSURED BY THE FEDERAL DEPOSIT IN-
SURANCE CORPORATION (FDIC), THE FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND
INVOLVE RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
<PAGE>
<PAGE>
---------------
PUTNAM INVESTMENTS Bulk Rate
U.S. Postage
THE PUTNAM FUNDS PAID
One Post Office Square Putnam
Boston, Massachusetts 02109 Investments
---------------
22202-030/345/681 1/96
<PAGE>
<PAGE>
APPENDIX TO FORM N-30D FILINGS TO DESCRIBE DIFFERENCES BETWEEN PRINTED AND
EDGAR-FILED TEXTS:
(1) Boldface typeface is displayed with capital letters, italic typeface is
displayed in normal type.
(2) Because the printed page breaks are not reflected, certain tabular and
columnar headings and symbols are displayed differently in this filing.
(3) Bullet points and similar graphic signals are omitted.
(4) Page numbering has been omitted.
(5) The trademark symbol has been replaced by (TM).
(6) The copyright symbol has been replaced by (C).
(7) The registered mark symbol has been replaced by (R).
(8) The dagger symbol has been replaced by +
(9) The double dagger symbol has been replaced by ++
(10) The triple dagger symbol has been replaced by +++
(11) The section symbol has been replaced by ^
(12) The double section symbol has been replaced by ^^
(13) The trile section symbol has been replaced by ^^^
