Putnam
New York
Tax Exempt
Income Fund
ANNUAL REPORT
November 30, 1996
[LOGO: BOSTON * LONDON * TOKYO]
Fund highlights
* "The credit situation in New York is brightening. Higher-than-
expected tax revenues, largely the result of a booming year on Wall
Street, and recent affirmation of New York City's investment-grade
credit rating by the major rating agencies are fostering greater
confidence in this municipal bond market."
-- Howard K. Manning, manager
Putnam New York Tax Exempt Income Fund
CONTENTS
4 Report from Putnam Management
9 Fund performance summary
14 Portfolio holdings
21 Financial statements
From the Chairman
[PHOTO OF GEORGE PUTNAM OMITTED]
(copyright) Karsh, Ottawa
Dear Shareholder:
The fiscal year that closed on November 30, 1996, certainly
represented a study in contrasts for shareholders of Putnam New York
Tax Exempt Income Fund.
The year opened amidst a flat-tax flurry in the presidential primary
campaign that threw the municipal bond market into a sustained state
of uncertainty. It proceeded in the wake of a succession of further
market worries over the state of the economy and the course of
interest rates. Finally, as the second half unfolded, the municipal
bond market began to develop a sense of serenity, closing the year
in an almost upbeat mood.
Toward the end of fiscal 1996, Howard Manning was appointed your
fund's manager. Howard has 14 years of investment experience and has
been a member of Putnam's municipal bond group since 1986.
In the report that follows, Howard discusses the events and
strategies that drove your fund's performance during the fiscal year
just ended and takes a look at prospects for the year that has just
begun.
Respectfully yours,
/S/George Putnam
George Putnam
Chairman of the Trustees
January 15, 1997
Report from the Fund Manager
Howard K. Manning
The ups and downs of interest rates during the past 12 months have
taken a toll on the performance of fixed-income securities, and
municipal bonds were not immune to these pressures. Performance
gains were made, only to be siphoned away by rising rates and bond
investors' uncertainty about economic growth and inflation. However,
thanks to a rally in the closing weeks of the reporting period,
Putnam New York Tax Exempt Income Fund's class A shares delivered a
total return of 4.92% at net asset value (NAV) and -0.10% at public
offering price (POP) for the year ended November 30, 1996.
Notwithstanding the difficulties presented by higher interest rates
during the year, the environment did bolster the fund's current
dividend rate. As of November 30, 1996, an investment taxed at the
maximum 46.27% federal, state, and city rate would have to provide a
current return of 9.36% to equal the fund's 5.03% current dividend
rate for class A shares at POP. (For complete performance and
dividend information, please see pages 9 and 10.)
*SLOWING ECONOMY AND STRONG DEMAND SPARK MUNICIPAL BOND RALLY
After a difficult and volatile year, the municipal bond market
shifted gears into a long-awaited rally in late fall. The U.S.
economy's fast-paced growth of 4.6% during the third quarter of
calendar year 1996 gave way to a projection of 2.2% growth for the
final three months of the year. Economists expect this slowdown to
continue into early 1997. This cooling of economic growth soothed
investors' concerns over rising interest rates and helped lead
fixed-income investments, including municipal bonds, to higher price
levels.
Strong demand also helped spur the recent rally. While large numbers
of U.S. investors focused their attention on the unprecedented gains
in the stock market, overseas investors purchased upward of $175
billion in U.S. bonds -- an amount that exceeds the federal budget
deficit. Although foreign investors -- ineligible for the tax
benefits of U.S. municipal bonds -- invested primarily in Treasury
securities, their interest sparked greater demand and consequently,
rising prices for the municipal market as well.
In terms of supply, the market for municipal securities was
relatively tight through the first few months of the period. June
and July are traditionally months in which many bonds mature or
reach their call dates and September's municipal bond issuance was
the lowest in more than a year. Autumn's lower interest rates,
however, made bond issuance more attractive for cash-strapped
municipalities, and the supply of new bonds rose.
We capitalized on the positive performance of the municipal bond
market by maintaining an above-market duration into the fall.
However, given the magnitude of the market's rally, we thought it
prudent to begin trimming the portfolio's duration in the closing
weeks of the period. Duration is a measure of the portfolio's
maturity structure and reflects the price sensitivity of holdings to
changes in interest rates. A longer duration can mean a more
volatile net asset value if rates change but also one more likely to
appreciate substantially if rates decline. A shorter duration can
help preserve portfolio value as interest rates rise.
[GRAPHIC OMITTED: HORIZONTAL BAR CHART TOP INDUSTRY SECTORS*]
TOP INDUSTRY SECTORS*
Transportation 26.2%
Education 17.7%
Health care 11.0%
Water and sewerage 6.4%
Utilities 6.3%
Footnote reads:
*Based on net assets as of 11/30/96. Top industry sectors will vary
over time.
*NEW YORK CREDIT ENVIRONMENT REMAINS STRESSED
Credit concerns continue to be an issue at both the state and local
levels. New York City and Albany are feeling the pinch as fewer
dollars flow from Washington. With more budget tightening in the
cards, state-appropriated issues and New York City government
obligations can be expected to undergo further pricing pressure.
With little expectation for improvement in the second half of the
year, we significantly reduced holdings in state-appropriated bonds,
which are used to finance public programs, in favor of essential-
service issues.
Essential-service bonds are attractive because they are self-
funding, that is, user fees that are paid for the services become
the sources of the bonds' payments to investors. Since the issuers
have the ability to set user fees, income from these bonds is
relatively stable and carries a lower risk of default than income
from other types of municipal bonds. Essential-service bonds have
another important advantage: they don't rely on the New York
budgetary process for their long-term survival. New York City Water
Authority, New York State Local Government Assistance Corp., Port
Authority of New York, and Triboro Bridge Authority are examples of
essential-service bonds in your fund's portfolio at the end of the
period.
One positive factor in New York's credit picture has been the
record-breaking pace on Wall Street. This market environment proved
especially beneficial for New York City. As tax-paying investors
earn more money, it boosts the city's and state's tax revenues.
This, in turn, helps ease chronic budget deficit problems and
improve perceptions of New York's creditworthiness. In fact, New
York City was in healthier financial shape this fall than we had
anticipated. Two of the major rating agencies -- Moody's and
Standard & Poor's(registered trademark) -- have acknowledged the
city's healthier prospects and reaffirmed their respective
investment-grade credit ratings of Baa-1 and BBB+.
[GRAPHIC OMITTED: PIE CHART PORTFOLIO QUALITY OVERVIEW]
PORTFOLIO QUALITY OVERVIEW*
Ba --1.3%
VMIG1 (short term)--2.0%
Baa --36.1%
Aaa --37.5%
A --13.8%
Aa --9.3%
Footnote reads:
*Based on percentage of market value as of 11/30/96. A bond rated
Baa or higher is considered investment grade. All ratings reflect
Moody's terminology and may include unrated bonds considered by
Putnam Management to be of comparable quality. Portfolio quality
will vary over time.
*MANAGEMENT STRATEGIES ARE DESIGNED TO INCREASE QUALITY AND SOFTEN
IMPACT OF MARKET VOLATILITY
For several months, our management focus has been on upgrading
credit quality and reducing the interest-rate risk of the fund. We
believe these efforts are critical to generating consistent, above-
average performance with below-average market risk.
As of November 30, 1996, nearly two thirds of the fund's holdings
were rated A or better. Our push into essential-service bonds and a
shift away from lower-quality holdings improved the portfolio's
overall credit quality. Given the tightening spreads between higher-
and lower-quality bonds, we do not believe investors are currently
being compensated for the increased risk posed by lower-rated bonds,
and so this shift should not have any significant impact on the
fund's income stream.
Zero-coupon bonds, which have been represented in the portfolio for
some time, typically experience wider price swings in response to
changing market conditions, outperforming in periods of declining
interest rates and underperforming in periods of rising interest
rates. Although they served the fund well during this fall's rally,
decreasing zero-coupon holdings has been at the forefront of our
efforts to reduce the fund's interest-rate sensitivity and, thus,
mitigate the impact of the market's volatility.
Managing call exposure a priority. A bond's provisions may allow the
issuer to call it in at or after a specified date but prior to
maturity. When the call date arrives, if interest rates have
declined below their level at the time of issue, the bond is likely
to be called, forcing investors to reinvest at the current lower
rates. Exposure to callable bonds always has some potential to
affect a fund's income stream; thus, as an ongoing part of our
strategy, we focus on noncallable bonds to reduce your fund's call
risk.
Even with this year's rise in interest rates, reinvestment risk
remains substantial, since many of the bonds now being called were
issued in the far higher rate environment of the 1980s. At year-end,
42% of the fund's assets were invested in noncallable bonds.
*CONSTRUCTIVE, YET CAUTIOUS, OUTLOOK PREVAILS
After the market's positive performance during the past several
months, we now believe municipal bonds may be fully priced and are
scaling back your portfolio's duration accordingly. We are also
aiming to re-position the portfolio from a barbell structure, which
favors holdings in both short- and long-term bonds, to one that
emphasizes bonds in the 15- to 20-year maturity range, where we
expect to find better values.
Pre-election talk of sweeping tax reforms, such as the flat tax and
the elimination of the Internal Revenue Service, has been shelved,
most likely for the duration of the current administration. Although
we remain aware that these issues are merely dormant, not dead, the
short-term outlook for tax-advantaged income investments remains
constructive.
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 11/30/96, 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 New York City
personal income taxes 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 11/30/96
Class A Class B Class M
(inception date) (9/2/83) (1/4/93) (4/10/95)
NAV POP NAV CDSC NAV POP
- -------------------------------------------------------------
1 year 4.92% -0.10% 4.35% -0.63% 4.59% 1.21%
- -------------------------------------------------------------
5 years 41.01 34.26 -- -- -- --
Annual
average 7.12 6.07 -- -- -- --
- -------------------------------------------------------------
10 years 103.77 94.05 -- -- -- --
Annual
average 7.38 6.85 -- -- -- --
- -------------------------------------------------------------
Life of class -- -- 21.98 19.00 10.28 6.64
Annual average -- -- 5.21 4.55 6.11 3.98
- -------------------------------------------------------------
COMPARATIVE INDEX RETURNS FOR PERIODS ENDED 11/30/96
Lehman Bros.
Municipal Consumer
Bond Index Price Index
- -------------------------------------------------------------
1 year 5.89% 3.26%
- -------------------------------------------------------------
5 years 45.83 15.09
Annual average 7.83 2.85
- -------------------------------------------------------------
10 years 112.21 43.66
Annual average 7.81 3.96
- -------------------------------------------------------------
Life of class B 31.20 11.77
Annual average 7.18 2.89
- -------------------------------------------------------------
Life of class M 15.06 4.76
Annual average 8.76 2.86
- -------------------------------------------------------------
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%.
[GRAPHIC WORM CHART OMITTED: GROWTH OF A $10,000 INVESTMENT]
GROWTH OF A $10,000 INVESTMENT
Fund's Lehman Bros.
Class A shares Municipal Bond Consumer Price
Date/year at POP Index Index
- --------- ----------- ----- ------
11/30/86 9,525 10,000 10,000
11/30/87 9,370 9,978 10,453
11/30/88 10,587 11,038 10,897
11/30/89 11,727 12,254 11,404
11/30/90 12,239 13,197 12,120
11/30/91 13,762 14,552 12,482
11/30/92 15,222 16,011 12,862
11/30/93 17,050 17,786 13,207
11/30/94 15,683 16,855 13,560
11/30/95 18,498 20,042 13,913
11/30/96 19,405 21,221 14,366
Footnote reads:
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 $12,198 on 11/30/96 ($11,900 with a redemption
at the end of the period). A $10,000 investment in the fund's class
M shares at inception on 4/10/95 would have been valued at $11,028
at net asset value on 11/30/96 ($10,664 at public offering price).
PRICE AND DISTRIBUTION INFORMATION
12 months ended 11/30/96
Class A Class B Class M
- -------------------------------------------------------------------
Distributions (number) 12 12 12
- -------------------------------------------------------------------
Income $0.481 $0.422 $0.454
- -------------------------------------------------------------------
Total $0.481 $0.422 $0.454
- -------------------------------------------------------------------
Share value: NAV POP NAV NAV POP
- -------------------------------------------------------------------
11/30/95 $8.97 $9.42 $8.95 $8.97 $9.27
- -------------------------------------------------------------------
11/30/96 8.91 9.35 8.90 8.91 9.21
- -------------------------------------------------------------------
Current return
(end of period)
- ------------------------------------------------------------------
Current dividend rate1 5.28% 5.03% 4.62% 4.96% 4.80%
- ------------------------------------------------------------------
Taxable equivalent2 9.83 9.36 8.60 9.23 8.93
- ------------------------------------------------------------------
Current 30-day SEC yield3 4.73 4.50 3.98 4.42 4.27
- ------------------------------------------------------------------
Taxable equivalent2 8.80 8.38 7.41 8.23 7.95
- ------------------------------------------------------------------
1Income portion of most recent distribution, annualized and divided
by NAV or POP at end of period. 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.
2Assumes maximum 46.27% combined federal and state tax rate. Results
for investors subject to lower tax rates would not be as
advantageous.
3Based only on investment income, calculated using SEC guidelines.
TOTAL RETURN FOR PERIODS ENDED 12/31/96
(most recent calendar quarter)
Class A Class B Class M
(inception date) (9/2/83) (1/4/93) (4/10/95)
NAV POP NAV CDSC NAV POP
- --------------------------------------------------------------------
1 year 3.40% -1.52% 2.72% -2.17% 3.08% -0.24%
- --------------------------------------------------------------------
5 years 37.80 31.21 -- -- -- --
Annual average 6.62 5.58 -- -- -- --
- --------------------------------------------------------------------
10 years 102.87 93.17 -- -- -- --
Annual average 7.33 6.80 -- -- -- --
- --------------------------------------------------------------------
Life of class -- -- 21.23 18.28 9.76 6.14
Annual average -- -- 4.94 4.30 5.53 3.50
- --------------------------------------------------------------------
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.
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 assumes reinvestment of all
distributions and interest payments, 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.
Performance of the fund will differ. 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.
Report of independent accountants
For the fiscal year ended November 30, 1996
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, 1996, 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
indicated therein. These financial statements and financial
highlights are the responsibility of the fund's management. Our
responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.
Our procedures included confirmation of securities owned as of
November 30, 1996, by correspondence with the custodian and brokers.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the
financial position of Putnam New York Tax Exempt Income Fund as of
November 30, 1996, the results of its operations for the year then
ended, the changes in its net assets for each of the two years in
the period then ended, and the financial highlights for each of the
periods indicated therein, in conformity with generally accepted
accounting principles.
Coopers & Lybrand L.L.P.
Boston, Massachusetts
January 13, 1997
Portfolio of investments owned
November 30, 1996
<TABLE>
<CAPTION>
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
RAN --Revenue Anticipation Notes
VRDN --Variable Rate Demand Notes
MUNICIPAL BONDS AND NOTES (99.2%)*
PRINCIPAL AMOUNT RATINGS** VALUE
<S> <C> <C> <C> <C>
New York (92.5%)*
- ------------------------------------------------------------------------------------------------------------------------------
$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 3,292,500
14,500,000 Battery Park, City Auth. Rev. Bonds, 7.7s, 5/1/15 Aaa 15,968,125
5,000,000 Metropolitan Trans. Auth. FRB, Ser. 93B, AMBAC, 6.05s, 6/30/02
(acquired 6/30/93, cost $5,170,750)(double dagger) Aaa 5,293,750
Metropolitan Trans. Auth. Rev. Bonds
15,400,000 Ser. A, MBIA 6 1/4s, 4/1/14 Aaa 17,171,000
14,495,000 Ser. A, MBIA 6 1/4s, 4/1/13 Aaa 16,180,044
5,000,000 (NY Svc. Contract Trans. Facs.), Ser. 7, 5.45s, 7/1/07 Baa 5,025,000
10,000,000 Ser. A, MBIA, 5 1/4s, 4/1/26 Aaa 9,700,000
Metropolitan Trans. Auth. Svcs. Contract Fac. Rev. Bonds
3,290,000 (Trans. Fac.), Ser. 3, 7 1/2s, 7/1/16 Aaa 3,705,363
3,750,000 (Trans. Fac.), Ser. 3, 7 3/8s, 7/1/08 Baa 4,321,875
3,000,000 (Trans. Fac.), Ser. 6, 7s, 7/1/09 Baa 3,262,500
10,065,000 (Trans. Fac.), Ser. P, 5 3/4s, 7/1/15 Baa 10,039,838
14,750,000 (Trans. Fac.), Ser. O, 5 3/4s, 7/1/13 Baa 14,989,688
8,000,000 (Commuter Fac.), Ser. O, 5 1/2s, 7/1/17 Baa 7,860,000
17,995,000 (Trans. Fac.), Ser. O, 5 1/2s, 7/1/17 Baa 17,680,088
5,000,000 Metropolitan Trans. Auth. Trans. Rev. Bonds,
Ser. O, MBIA, 6 3/8s, 7/1/20 Aaa 5,331,250
Muni. Assistance Corp. for the City of NY Rev. Bonds
4,500,000 Ser. 61, 5 3/4s, 7/1/08 Aa 4,545,945
11,795,000 Ser. 62, 5 1/2s, 7/1/08 Aa 11,898,796
4,225,000 NY City, G.O. Bonds, Ser. D, 8s, 8/1/03 BBB 4,911,563
6,000,000 NY & NJ Port Auth. Rev. Bonds (Kennedy Intl. Arpt.), 6 3/4s, 10/1/19 BB/P 6,202,500
500,000 NY City, Cultural Res. VRDN (American Museum of Natural History),
Ser. B, MBIA, 3.35s, 4/1/21 VMIGI 500,000
NY City, G.O. Bonds
5,430,000 Ser. D, 8 1/4s, 8/1/11 A 6,237,713
12,325,000 Ser. B, 8 1/4s, 6/1/05 Baa 14,558,906
20,195,000 Ser. A, 8s, 8/15/19 BBB 23,552,419
5,775,000 Ser. D, 8s, 8/1/03 Baa 6,496,875
1,035,000 Ser. D, Prerefunded, 7.65s, 2/1/08 BBB 1,198,013
4,540,000 Ser. D, 7.65s, 2/1/08 Baa 5,084,800
3,455,000 Ser. E, 7.6s, 2/1/05 A 3,839,369
4,730,000 Ser. F, 7.6s, 2/1/05 A 5,297,600
26,000,000 Ser. B, 7 1/2s, 2/1/06 BBB 28,502,500
20,000,000 Ser. B, 7 1/2s, 2/1/02 BBB 22,200,000
12,675,000 Ser. B, 6 1/2s, 8/15/11 Baa 13,514,719
21,495,000 Ser. D, 6 1/2s, 11/1/10 Baa 22,972,781
5,240,000 Ser. B, 6 1/2s, 8/15/10 Baa 5,600,250
10,000,000 Ser. F, 5 7/8s, 8/1/24 BBB 9,787,500
18,800,000 Ser. F, 3s, 11/15/00 A 17,719,000
NY City, VRDN
5,000,000 Ser. D, FGIC, 3.55s, 2/1/21 VMIGI 5,000,000
2,500,000 (Brooklyn Navy Yard), Ser. B, 3.7s, 7/1/29 VMIGI 2,500,000
2,000,000 Ser. A-10, 3 1/4s, 8/1/17 VMIGI 2,000,000
NY City, Indl. Dev. Agcy. Special Fac. Rev. Bonds
(Terminal One Group Assn.)
20,500,000 6 1/8s, 1/1/24 A 20,679,375
18,250,000 6s, 1/1/19 A 18,318,438
8,000,000 NY City, Indl. Dev. Rev. Bonds (Solid Waste Disp-Visy Paper),
7.8s, 1/1/16 BB/P 8,610,000
505,000 NY City, Hsg. Dev. Corp. Mtge. VRDN (Parkgate Tower), Ser. 1, 3.4s, 12/1/07 VMIGI 505,000
3,300,000 NY City, Hsg. Dev. Corp. Special Obligation VRDN (East 96th St. Project),
Ser. A, 3.55s, 8/1/15 VMIGI 3,300,000
12,000,000 NY City, Indl. Dev. Agcy. (Paer Inc.), 7.95s, 1/1/28 BB/P 12,915,000
10,740,000 NY City, Indl. Dev. Agcy. Civic Fac. Rev. Bonds (Rockefeller Foundation),
5 3/8s, 7/1/23 Aaa 10,632,600
NY City, Indl. Dev. Agcy. Special Fac. Rev. Bonds
10,625,000 (American Airlines, Inc.), 6.9s, 8/1/24 Baa 11,368,750
6,000,000 (Terminal One Group Assn.), 6s, 1/1/15 A 6,045,000
13,000,000 NY City, Muni. Fin. Auth. Wtr. and Swr. Syst. FRB, FGIC, 11s, 6/15/11
(acquired 8/9/91, cost $13,587,860)(double dagger)# AAA 19,321,250
NY City, Muni. Wtr. Fin. Auth. Rev. Bonds
2,480,000 6 3/4s, 6/15/17 A 2,631,900
2,520,000 Prerefunded, MBIA, 6 3/4s, 6/15/17 Aaa 2,790,900
10,000,000 Ser. A, MBIA, 6s, 6/15/25 Aaa 10,425,000
15,000,000 Ser. B, MBIA, 5 3/4s, 6/15/26 Aaa 15,243,750
27,500,000 Ser. A, 5 1/2s, 6/15/24 A 26,881,250
4,000,000 NY City, Muni. Wtr. Fin. Auth. VRDN, Ser. C, 4.1s, 6/15/22 VMIGI 4,000,000
17,500,000 NY City, Muni. Wtr. Fin. Auth. IFB, MBIA, 6.77s, 6/15/08 Aaa 17,675,000
NY State G.O. Bonds
15,965,000 Ser. A, 6 1/8s, 6/15/14 A 16,942,856
7,500,000 Ser. A, 6s, 7/15/08 A 8,268,750
2,000,000 Ser. A, 6s, 7/15/07 A 2,217,500
6,050,000 Ser. C, 6s, 10/1/04 A 6,624,750
13,000,000 NY State Dorm. Auth. IFB (Cornell U.), 10.699s, 7/1/30
(acquired 8/9/91, cost $13,315,900)(double dagger) AA 15,746,250
5,700,000 NY State Dorm. Auth. Lease Rev. Bonds (State U. Dorm Fac.),
Ser. A, AMBAC, 5 3/4s, 7/1/07 Aaa 6,099,000
NY State Dorm. Auth. Rev. Bonds
5,000,000 (NY Dept of Ed.), 7 3/4s, 7/1/21 Baa 5,781,250
9,000,000 (State U. Edl. Fac.), Ser. A, 7 5/8s, 5/15/05 AAA 10,136,250
18,800,000 (City U. Syst.), Ser. C, 7 1/2s, 7/1/10 Baa 22,278,000
4,000,000 (State U. Athletic Fac.), 7 1/4s, 7/1/21 Baa 4,365,000
4,465,000 (U. of Rochester), 6 1/2s, 7/1/09 A 4,608,148
7,500,000 (State U. Edl. Fac.), Ser. A, 5 7/8s, 5/15/17 Baa 7,659,375
13,200,000 (State U. Edl. Fac.), Ser. A, 5 7/8s, 5/15/11 Baa 13,612,500
42,910,000 (Construction City U. Syst.), Ser. A, 5 3/4s, 7/1/18 Baa 43,500,013
10,000,000 MBIA, 5 3/4s, 7/1/14 Aaa 10,200,000
24,000,000 (City U. Syst.), Ser. A., 5 3/4s, 7/1/13 Baa 24,300,000
10,145,000 (Construction City U. Syst.), Ser. A, 5 3/4s, 7/1/13 Baa 10,271,813
10,000,000 (Columbia U.), Ser. A, 5 3/4s, 7/1/10 Aaa 10,687,500
10,930,000 (Cons City U. Syst.), Ser. A, 5 3/4s, 7/1/09 Baa 11,134,938
3,485,000 (State U. Edl. Fac.), Ser. B, 5.7s, 5/15/04 Baa 3,620,044
6,000,000 (U. Syst. Construction), Ser. A, 5 5/8s, 7/1/16 Baa 5,962,500
16,055,000 (State U. Edl. Fac.), Ser. A, 5 1/2s, 5/15/13 Baa 15,834,244
9,000,000 (State U. Edl. Fac.), Ser. A, 5 1/2s, 5/15/10 Baa 8,988,750
5,000,000 (State U. Edl. Fac.), Ser. B, 5 1/2s, 5/15/08 Baa 5,050,000
38,600,000 (State U. Edl. Fac.), Ser. A, 5 1/4s, 5/15/15 Baa 36,911,250
11,000,000 (City U. Syst.), Ser. C, 5s, 7/1/17 Baa 9,982,500
4,020,000 (Columbia U.), 5s, 7/1/15 Aaa 3,869,250
15,985,000 (Cornell U.), 5s, 7/1/15 Aa 15,085,844
23,864,000 (State U. Edl. Fac.), Ser. B, zero %, 5/15/10 BBB 11,395,060
48,000,000 (State U. Edl. Fac.), Ser. B, zero %, 5/15/09 Baa 24,240,000
54,520,000 (State U. Edl. Fac.), Ser. B, zero %, 5/15/08 BBB 29,100,050
10,000,000 (State U. Edl. Fac.), Ser. B, zero %, 5/15/07 BBB 5,662,500
10,580,000 (State U. Edl. Fac.), Ser. B, zero %, 5/15/06 BBB 6,361,225
700,000 NY State Dorm. Auth. VRDN (Osborne Mem. Home),
Ser. A, 3.55s, 7/1/24 VMIGI 700,000
5,000,000 NY State Energy Research & Dev. Auth. Fac. Rev. Bonds
(Cons. Edison Co. of NY, Inc.), 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, 10.051s, 7/1/26 A 12,487,500
NY State Energy Research & Dev. Auth. Poll. Control Rev. Bonds
(Niagara Mohawk Pwr. Corp.), Ser. A, FGIC
10,000,000 7.2s, 7/1/29 Aaa 11,500,000
12,500,000 6 5/8s, 10/1/13 Aaa 13,656,250
4,100,000 NY State Energy Research & Dev. Auth. Poll. Control VRDN
(NY Elec. Gas), Ser. D, 4 1/4s, 10/1/29 VMIGI 4,100,000
7,000,000 NY State Energy Research & Dev. Auth. Rev. Bonds,
AMBAC, 6.1s, 5/15/20 Aaa 7,315,000
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 9,607,050
5,050,000 Ser. E, 6 7/8s, 6/15/10 Aa 5,586,563
6,870,000 Ser. B, 6.65s, 9/15/13 Aaa 7,599,938
5,265,000 Ser. A, 6.55s, 9/15/10 Aaa 5,804,663
5,000,000 NY State Env. Fac. Corp. Wtr. Fac. Rev. Bonds
(Spring Valley Wtr. Co.), AMBAC, 6.15s, 8/1/24 Aaa 5,218,750
16,750,000 NY State Hsg. Corp. Rev. Bonds, Ser. A, zero %
(9 1/2s, 11/1/00), 11/1/10 ++ Aaa 14,405,000
NY State Hsg. Fin. Agcy. Rev. Bonds
4,790,000 8s, 11/1/08 Baa 5,370,788
23,310,000 Prerefunded, 8s, 11/1/08 Aaa 26,835,638
9,440,000 (Multi-Fam. Hsg. Insd. Mtge. Program), FHA Insd., Ser. A, 7s, 8/15/22 Aa 9,994,600
5,570,000 (Multi-Fam. Mtge.), Ser. B, AMBAC, 6.35s, 8/15/23 Aaa 5,757,988
NY State Hsg. Fin. Agcy. Svcs. Contract Oblig. Rev. Bonds
7,500,000 Ser. C, 7.3s, 3/15/21 Aaa 8,587,500
3,000,000 Ser. A, 6 1/4s, 9/15/10 Baa 3,105,000
NY State Local Govt. Assistance Corp. Rev. Bonds
3,000,000 Ser. A, 7 1/4s, 4/1/18 Aaa 3,393,750
11,900,000 Ser. A, 6 1/2s, 4/1/20 A 12,852,000
6,000,000 Ser. E, AMBAC, 6s, 4/1/14 Aaa 6,532,500
12,510,000 Ser. E, 6s, 4/1/14 A 13,651,538
5,000,000 Ser. A, 6s, 4/1/07 A 5,431,250
17,605,000 Ser. B, 5 3/8s, 4/1/16 A 17,362,931
4,005,000 Ser. E, 5 1/4s, 4/1/16 A 3,949,931
7,210,000 Ser. C, zero %, MBIA, 4/1/14 Aaa 2,811,900
2,000,000 NY State Local Govt. Assistance Corp., VRDN, Ser. F, 3.3s, 4/1/25 VMIG 2,000,000
5,000,000 Ser. B, 3.3s, 4/1/23 VMIGI 5,000,000
24,700,000 NY State Med. Care Fac. Fin. Agcy. FRB (Monterfiore Med. Ctr.),
Ser. A, MBIA, 10.45s, 2/15/24 (acquired various dates from 10/3/91
to 4/8/92, cost $26,795,648)(double dagger) Aaa 28,250,625
NY State Med. Care Fac. Fin. Agcy. Rev. Bonds
3,230,000 (Mental Hlth. Svcs. Fac.), Ser. A, Prerefunded, 8 7/8s, 8/15/07 Aaa 3,414,788
3,080,000 (Mental Hlth. Svcs. Fac.), Ser. A, 8 7/8s, 8/15/07 Baa 3,233,230
11,000,000 (Hosp. & Nursing Home), Ser. B, FHA Insd., 8s, 2/15/28 Aaa 11,852,500
7,150,000 (Hosp. & Nursing Home Insd. Mtge.), Ser. A, FHA Insd., 8s, 2/15/27 Aaa 7,513,792
7,985,000 (Mental Hlth. Svcs. Fac.), Ser. B, Refunded, 7 7/8s, 8/15/20 Aaa 9,112,881
5,805,000 (Mental Hlth. Svcs. Fac.), Ser. B, 7 7/8s, 8/15/20 Baa 6,458,063
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 25,594,031
5,000,000 (Hosp. & Nursing Home), Ser. C, FHA Insd., 7.7s, 2/15/22 AAA 5,412,500
6,160,000 (Mental Hlth. Svcs. Fac.), Ser. B, 7 5/8s, 8/15/17 A 6,937,700
24,775,000 (Mental Hlth. Svcs. Fac.), Ser. A, 7 1/2s, 2/15/21 Aaa 28,212,531
18,500,000 (St. Luke's Hosp.), Ser. B, FHA Insd., 7.45s, 2/15/29 Aaa 20,604,375
3,000,000 (Hosp. & Nursing Home), Ser. A, FHA Insd., 6 7/8s, 2/15/32 Aa 3,206,250
6,625,000 (Methodist Hosp. & Nursing Home), Ser. A, FHA Insd., 6.7s, 8/15/23 AA 7,072,188
12,325,000 Ser. A, AMBAC, 6 1/2s, 8/15/29 Aaa 13,449,656
NY State Mtge. Agcy. Rev. Bonds
3,320,000 (Homeownership Dev. Program), Ser. Q, 7.7s, 10/1/12 Aa 3,498,450
42,385,000 (Single-Fam.), Ser. 2, zero %, 10/1/14 Aa 7,918,366
4,250,000 NY State Muni. Bond Bank Agcy. Special Program Rev. Bonds
(Rochester), Ser. A, 6 3/4s, 3/15/11 A 4,595,313
2,900,000 NY State Pwr. Auth. General Purpose Rev. Bonds, Ser. U, 5 3/4s, 1/1/18 Aa 2,900,232
8,400,000 NY State Pwr. Auth. Rev. Bonds, Ser. Y, 6 3/4s, 1/1/18 Aa 9,198,000
10,000,000 NY State Thruway Auth. Rev. Bonds (Local Hwy. & Bridge), MBIA, 5 3/4s, 4/1/13 Aaa 10,300,000
20,000,000 NY State Thruway Auth. G.O. Bonds, Ser. C, FGIC, 6s, 1/1/25 Aaa 20,900,000
4,300,000 NY State Thruway Auth. Hwy. & Bridge Trust Fund Rev. Bonds,
Ser. B, FGIC, 6s, 4/1/14 Aaa 4,536,500
9,725,000 Ser. A, MBIA, 5 1/2s, 4/1/15 Aaa 9,761,469
10,000,000 Ser. B, MBIA, 5 1/8s, 4/1/15 Aaa 9,687,500
NY State Thruway Auth. Svc. Contract Rev. Bonds
13,300,000 (Local Hwy. & Bridge), 7 1/4s, 1/1/10 Baa 14,929,250
16,385,000 6.45s, 4/1/15 Baa 17,224,731
6,500,000 (Local Hwy. & Bridge), 6 1/4s, 4/1/07 Baa 6,792,500
11,800,000 (Local Hwy. & Bridge), 6s, 1/1/11 Baa 11,977,000
15,000,000 5 3/4s, 4/1/16 Baa 15,056,250
5,625,000 5 3/4s, 4/1/06 Baa 5,835,938
NY State Urban Dev. Corp. Rev. Bonds
9,000,000 (Onondaga Cnty. Convention), 7 7/8s, 1/1/20 Baa 10,338,750
23,250,000 (State Fac.), 7 1/2s, 4/1/20 Aaa 26,534,063
33,250,000 (Correctional Fac.), Ser. 2, 7 1/2s, 1/1/18 Aaa 37,738,750
5,000,000 (Correctional Cap. Fac.), Ser. A, FSA, 6 1/2s, 1/1/11 Aaa 5,693,750
6,000,000 (Correctional Fac.), FSA, 6 1/2s, 1/1/10 Aaa 6,817,500
5,250,000 (State Fac.), 5 3/4s, 4/1/12 Baa 5,355,000
11,225,000 (State Fac.), 5.7s, 4/1/10 Baa 11,421,438
16,500,000 5.6s, 4/1/15 Baa 16,458,750
7,710,000 (Correctional Cap. Fac.), Ser. A, 5 1/2s, 1/1/09 Baa 7,719,638
7,775,000 (Correctional Cap. Fac.), Ser. A, 5 1/2s, 1/1/08 Baa 7,813,875
2,300,000 North Hempstead, Solid Waste Mgt. Auth. VRDN, Ser. A, 3.45s, 2/1/12 VMIGI 2,300,000
5,250,000 Port Auth. NY & NJ Cons. Rev. Bonds Ser. 51-E, 7s, 12/1/14 A 5,389,545
44,500,000 Ser. 93rd, 6 1/8s, 6/1/94 AA 47,893,111
56,000,000 FGIC, 4.997s, 11/15/20 AAA 53,340,000
8,600,000 Port Auth. NY & NJ Cons. IFB, 9.703s, 8/1/26 (acquired 8/29/91,
cost $8,814,828)(double dagger) AA 9,890,000
Suffolk Cnty., G.O. Bonds (Southwest Swr. Dist.)
5,815,000 MBIA, 6s, 2/1/08 Aaa 6,352,888
5,000,000 MBIA, 6s, 2/1/06 Aaa 5,475,000
2,500,000 Suffolk Cnty., Indl. Dev. Agy. VRDN (Target Rock Corp.), 3.5s, 2/1/07 VMIGI 2,500,000
2,000,000 Suffolk Cnty., Wtr. Auth. RAN, 3.45s, 2/8/01 VMIGI 2,000,000
Triborough Bridge & Tunnel Auth. Rev. Bonds
38,750,000 (Convention Ctr.), Ser. E, 7 1/4s, 1/1/10 Baa 44,562,500
12,500,000 (Convention Ctr.), Ser. E, 6s, 1/1/11 Baa 13,000,000
Triborough Bridge & Tunnel Auth. General Purpose Rev. Bonds
7,000,000 Ser. A, 6 1/2s, 1/1/09 Aa 8,023,750
5,700,000 Ser. Y, 6s, 1/1/12 Aa 6,220,125
8,915,000 6s, 1/1/10 Aa 9,784,213
6,500,000 Ser. B, 5.2s, 1/1/22 Aa 6,264,375
21,480,000 Ser. B, MBIA, zero %, 1/1/22 Aaa 5,504,250
9,105,000 Ser. B, MBIA, zero %, 1/1/15 Aaa 3,437,138
18,000,000 Triborough Bridge & Tunnel Auth. Special Oblig. IFB, AMBAC, 8.421s, 1/1/12
(acquired 7/10/92, cost $18,135,000)(double dagger) Aaa 20,272,500
4,000,000 Triborough Bridge & Tunnel Auth. Special Oblig. VRDN, FGIC, 3.5s, 1/1/24 VMIGI 4,000,000
1,000,000 Warren & Wash Cntys., Indl. Dev. Agcy. VRDN (Manchester Wood), 3.65s, 11/1/04 A 1,000,000
--------------
1,944,392,295
Puerto Rico (6.7%)*
- ------------------------------------------------------------------------------------------------------------------------------
20,500,000 Cmnwlth. of PR, Aqueduct & Swr. Auth. Rev. Bonds, Ser. A, 7 7/8s, 7/1/17 AAA 22,191,250
Cmnwlth. of PR, G.O. Bonds
3,915,000 6 1/2s, 7/1/13 A 4,409,269
11,110,000 6 1/2s, 7/1/12 A 12,526,525
Cmnwlth. of PR, Hwy. & Trans. Auth. Rev. Bonds
3,000,000 Ser. V, 6 5/8s, 7/1/12 A 3,217,500
7,000,000 Ser. Z, FSA, 6 1/4s, 7/1/16 Aaa 7,866,250
5,000,000 Ser. Z, FSA, 6s, 7/1/18 Aaa 5,487,500
9,000,000 Ser. X, MBIA, 5 1/2s, 7/1/13 Aaa 9,360,000
PR Elec. Pwr. Auth. Rev. Bonds, Ser. W
33,000,000 MBIA, 7s, 7/1/07 Aaa 39,146,250
10,315,000 PR Elec. Pwr. Auth. Rev. Bonds, Ser. R, 6 1/4s, 7/1/17 A 10,843,644
11,350,000 PR Tel. Auth. Tel. Auth. IFB, 7.936s, 1/1/20
(acquired 9/25/92, cost $10,981,125)(double dagger) A 12,258,000
5,000,000 PR Aqueduct & Swr. Auth. Rev. Bonds, MBIA, 6s, 7/1/06 Aaa 5,518,750
7,375,000 PR Elec. Pwr. Auth. Rev. Bonds, Ser. S, 6 1/8s, 7/1/09 A 7,955,781
--------------
140,780,719
- ------------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $1,917,902,977)*** $ 2,085,173,014
- ------------------------------------------------------------------------------------------------------------------------------
* Percentages indicated are based on net assets of $2,102,319,785.
** The Moody's or Standard & Poor's ratings indicated are
believed to be the most recent ratings available at
November 30, 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 November 30, 1996.
Securities rated by Putnam are indicated by "/P" and
are not publicly rated. Ratings are not covered by the
Report of independent accountants.
*** The aggregate identified cost on a tax basis is
$1,920,801,087, resulting in gross unrealized appreciation and
depreciation of $167,154,952 and $2,783,025, respectively,
or net unrealized appreciation of $164,371,927.
++ The interest rate and date shown parenthetically represent
the new interest rate to be paid and the date the fund
will begin receiving interest at this rate.
(double dagger) Restricted, excluding 144A securities, as to public resale.
The total market value of restricted securities held at
November 30, 1996 was $111,032,375 or 5.3% of
net assets.
# A portion of this security was pledged and
segregated with the custodian to cover margin requirements
for futures contracts at November 30, 1996.
The rate shown on VRDN, IFB and FRB are the current interest rates
shown at November 30, 1996 which are subject to change based on the
terms of the security.
The fund had the following industry group
concentrations greater than 10% at
November 30, 1996 (as a percentage of net assets):
Transportation 26.2%
Education 17.7
Health Care 11.0
The fund had the following insurance
concentrations greater than 10% at
November 30, 1996 (as a percentage of net assets):
MBIA 11.5%
<CAPTION>
- --------------------------------------------------------------------------------
Futures Contracts Outstanding at November 30, 1996
Unrealized
Aggregate Face Delivery Appreciation/
Total Value Value Date (Depreciation)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Treasury Bond
Futures (Short) $43,000,938 $42,555,625 Dec 96 $(445,313)
U.S. Treasury Bond
Futures (Short) 11,587,500 11,500,208 Dec 96 (87,292)
Municipal Bond Index
Futures (Long) 20,219,375 20,048,438 Dec 96 170,937
- --------------------------------------------------------------------------------
$(361,668)
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of assets and liabilities
November 30, 1996
<S> <C>
Assets
- -----------------------------------------------------------------------------------------------------
Investments in securities, at value
(identified cost $1,917,902,977) (Note 1) $2,085,173,014
- -----------------------------------------------------------------------------------------------------
Cash 213,887
- -----------------------------------------------------------------------------------------------------
Interest and other receivables 37,520,602
- -----------------------------------------------------------------------------------------------------
Receivable for shares of the fund sold 1,139,713
- -----------------------------------------------------------------------------------------------------
Receivable for securities sold 15,439,929
- -----------------------------------------------------------------------------------------------------
Other assets 15,054
- -----------------------------------------------------------------------------------------------------
Total assets 2,139,502,199
Liabilities
- -----------------------------------------------------------------------------------------------------
Payable for variation margin 282,500
- -----------------------------------------------------------------------------------------------------
Distributions payable to shareholders 4,187,311
- -----------------------------------------------------------------------------------------------------
Payable for securities purchased 27,892,104
- -----------------------------------------------------------------------------------------------------
Payable for shares of the fund repurchased 1,073,129
- -----------------------------------------------------------------------------------------------------
Payable for compensation of Manager (Note 2) 2,498,250
- -----------------------------------------------------------------------------------------------------
Payable for investor servicing and custodian fees (Note 2) 53,917
- -----------------------------------------------------------------------------------------------------
Payable for compensation of Trustees (Note 2) 23,475
- -----------------------------------------------------------------------------------------------------
Payable for administrative services (Note 2) 3,750
- -----------------------------------------------------------------------------------------------------
Payable for distribution fees (Note 2) 775,747
- -----------------------------------------------------------------------------------------------------
Other accrued expenses 392,231
- -----------------------------------------------------------------------------------------------------
Total liabilities 37,182,414
- -----------------------------------------------------------------------------------------------------
Net assets $2,102,319,785
Represented by
- -----------------------------------------------------------------------------------------------------
Paid-in capital (Notes 1, 4 and 5) $1,987,680,827
- -----------------------------------------------------------------------------------------------------
Undistributed net investment income (Note 1) 2,766,182
- -----------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (Note 1) (55,035,593)
- -----------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments (Note 5) 166,908,369
- -----------------------------------------------------------------------------------------------------
Total - Representing net assets applicable to capital shares outstanding $2,102,319,785
Computation of net asset value and offering price
- -----------------------------------------------------------------------------------------------------
Net asset value and redemption price per class A share
($1,873,648,835 divided by 210,172,016 shares) $8.91
- -----------------------------------------------------------------------------------------------------
Offering price per class A share (100/95.25 of $8.91)* $9.35
- -----------------------------------------------------------------------------------------------------
Net asset value and offering price per class B share
($227,404,662 divided by 25,557,648 shares)+ $8.90
- -----------------------------------------------------------------------------------------------------
Net asset value and redemption price per class M share
($1,266,288 divided by 142,064 shares) $8.91
- -----------------------------------------------------------------------------------------------------
Offering price per class M share (100/96.75 of $8.91)** $9.21
- -----------------------------------------------------------------------------------------------------
* 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
Year ended November 30, 1996
<S> <C>
Tax exempt interest income $132,345,693
- ----------------------------------------------------------------------------------------------------
Expenses:
- ----------------------------------------------------------------------------------------------------
Compensation of Manager (Note 2) 10,240,984
- ----------------------------------------------------------------------------------------------------
Investor servicing and custodian fees (Note 2) 1,734,733
- ----------------------------------------------------------------------------------------------------
Compensation of Trustees (Note 2) 67,477
- ----------------------------------------------------------------------------------------------------
Administrative services (Note 2) 23,454
- ----------------------------------------------------------------------------------------------------
Distribution fees -- Class A (Note 2) 3,811,503
- ----------------------------------------------------------------------------------------------------
Distribution fees -- Class B (Note 2) 1,856,649
- ----------------------------------------------------------------------------------------------------
Distribution fees -- Class M (Note 2) 4,805
- ----------------------------------------------------------------------------------------------------
Reports to shareholders 103,877
- ----------------------------------------------------------------------------------------------------
Registration fees 3,250
- ----------------------------------------------------------------------------------------------------
Auditing 100,122
- ----------------------------------------------------------------------------------------------------
Legal 75,438
- ----------------------------------------------------------------------------------------------------
Postage 464,030
- ----------------------------------------------------------------------------------------------------
Other 193,882
- ----------------------------------------------------------------------------------------------------
Total expenses 18,680,204
- ----------------------------------------------------------------------------------------------------
Expense reduction (Note 2) (1,117,706)
- ----------------------------------------------------------------------------------------------------
Net expenses 17,562,498
- ----------------------------------------------------------------------------------------------------
Net investment income 114,783,195
- ----------------------------------------------------------------------------------------------------
Net realized gain on investments (Notes 1 and 3) 28,049,517
- ----------------------------------------------------------------------------------------------------
Net realized gain on futures contracts (Note 1) 815,460
- ----------------------------------------------------------------------------------------------------
Net unrealized depreciation of investments and futures during the year (44,401,444)
- ----------------------------------------------------------------------------------------------------
Net loss on investments (15,536,467)
- ----------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $99,246,728
- ----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of changes in net assets
Year ended November 30
----------------------------------
1996 1995
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (decrease) in net assets
- -----------------------------------------------------------------------------------------------------------
Operations:
- -----------------------------------------------------------------------------------------------------------
Net investment income $114,783,195 $121,635,507
- -----------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 28,864,977 (25,616,294)
- -----------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation)
of investments (44,401,444) 262,034,238
- -----------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 99,246,728 358,053,451
- -----------------------------------------------------------------------------------------------------------
Distributions to shareholders:
- -----------------------------------------------------------------------------------------------------------
From net investment income
Class A (104,395,042) (113,360,526)
- -----------------------------------------------------------------------------------------------------------
Class B (10,533,538) (9,815,891)
- -----------------------------------------------------------------------------------------------------------
Class M (49,718) (11,640)
- -----------------------------------------------------------------------------------------------------------
Decrease from capital share transactions (Note 4) (111,172,908) (80,755,503)
- -----------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (126,904,478) 154,109,891
- -----------------------------------------------------------------------------------------------------------
Net assets
- -----------------------------------------------------------------------------------------------------------
Beginning of year 2,229,224,263 2,075,114,372
- -----------------------------------------------------------------------------------------------------------
End of year (including undistributed net investment
income of $2,766,182 and $1,213,618, respectively) $2,102,319,785 $2,229,224,263
- -----------------------------------------------------------------------------------------------------------
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
(commencement
Year ended of operations) Year ended
November 30 to November 30 November 30
-------------------------------------------------------------
1996 1995 1996
- ----------------------------------------------------------------------------------------------------------------------
Class M Class B
--------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $8.97 $8.79 $8.95
- ----------------------------------------------------------------------------------------------------------------------
Investment operations
- ----------------------------------------------------------------------------------------------------------------------
Net investment income .45 .26(a) .42
- ----------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (.06) .21 (.05)
- ----------------------------------------------------------------------------------------------------------------------
Total from investment operations .39 .47 .37
- ----------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
- ----------------------------------------------------------------------------------------------------------------------
From net investment income (.45) (.29) (.42)
- ----------------------------------------------------------------------------------------------------------------------
From net realized gain on investments -- -- --
- ----------------------------------------------------------------------------------------------------------------------
In excess of net realized gain on investments -- -- --
- ----------------------------------------------------------------------------------------------------------------------
Total distributions (.45) (.29) (.42)
- ----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $8.91 $8.97 $8.90
- ----------------------------------------------------------------------------------------------------------------------
Total investment return at net asset value (%)(b) 4.59 5.44* 4.35
- ----------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $1,266 $588 $227,405
- ----------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets (%)(c) 1.11 .65* 1.46
- ----------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average net assets (%) 5.17 3.30* 4.81
- ----------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 59.60 73.85 59.60
- ----------------------------------------------------------------------------------------------------------------------
</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 (%)(b) 17.26 (8.75) 9.25*
- -----------------------------------------------------------------------------------------------------------------------
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*
- -----------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average net assets (%) 4.95 5.16 4.29*
- -----------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 73.85 47.56 26.60
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Financial highlights (continued)
(For a share outstanding throughout the period)
Year ended November 30
-------------------------------------------------------
1996 1995 1994
-------------------------------------------------------
Class A
-------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $8.97 $8.05 $9.38
- --------------------------------------------------------------------------------------------------------------------------
Investment operations
- --------------------------------------------------------------------------------------------------------------------------
Net investment income .48 .49 .53
- --------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (.06) .92 (1.24)
- --------------------------------------------------------------------------------------------------------------------------
Total from investment operations .42 1.41 (.71)
- --------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
- --------------------------------------------------------------------------------------------------------------------------
From net investment income (.48) (.49) (.51)
- --------------------------------------------------------------------------------------------------------------------------
From net realized gain on investments -- -- (.05)
- --------------------------------------------------------------------------------------------------------------------------
In excess of net realized gain on investments -- -- (.06)
- --------------------------------------------------------------------------------------------------------------------------
Total distributions (.48) (.49) (.62)
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $8.91 $8.97 $8.05
- --------------------------------------------------------------------------------------------------------------------------
Total investment return at net asset value (%)(b) 4.92 17.95 (8.02)
- --------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $1,873,649 $2,013,022 $1,901,901
- --------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets (%)(c) .81 .78 .75
- --------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average net assets (%) 5.47 5.63 5.82
- --------------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 59.60 73.85 47.56
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Financial highlights (continued)
(For a share outstanding throughout the period)
Year ended November 30
- --------------------------------------------------------------------------------------------------
1993 1992
- --------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $8.98 $8.75
- --------------------------------------------------------------------------------------------------
Investment operations
- --------------------------------------------------------------------------------------------------
Net investment income .53 .57
- --------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments .52 .32
- --------------------------------------------------------------------------------------------------
Total from investment operations 1.05 .89
- --------------------------------------------------------------------------------------------------
Distributions to shareholders:
- --------------------------------------------------------------------------------------------------
From net investment income (.53) (.58)
- --------------------------------------------------------------------------------------------------
From net realized gain on investments (.10) (.08)
- --------------------------------------------------------------------------------------------------
In excess of net realized gain on investments (.02) --
- --------------------------------------------------------------------------------------------------
Total distributions (.65) (.66)
- --------------------------------------------------------------------------------------------------
Net asset value, end of period $9.38 $8.98
- --------------------------------------------------------------------------------------------------
Total investment return at net asset value (%)(b) 12.02 10.60
- --------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $2,280,604 $1,960,500
- --------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets (%)(c) .76 .66
- --------------------------------------------------------------------------------------------------
Ratio of net investment income to average net assets (%) 5.67 6.44
- --------------------------------------------------------------------------------------------------
Portfolio turnover (%) 26.60 20.13
- --------------------------------------------------------------------------------------------------
* Not annualized.
(a) 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.
(b) Total investment return assumes dividend reinvestment
and does not reflect the effect of sales charge.
(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
November 30, 1996
Note 1
Significant accounting policies
The fund is a portfolio 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 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 nor for
excise tax on income and capital gains.
At November 30, 1996, the fund had a capital loss carryover of
approximately $32,518,000 available to offset future capital gains,
if any. The amount of the carryover and the expiration dates are:
Loss Carryover Expiration
------------------ --------------------
$ 5,000 November 30, 2001
$27,938,000 November 30, 2002
$ 4,575,000 November 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.
These differences include treatment of market discount and realized
and unrealized gains and losses on certain futures contracts.
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. For the year ended
November 30, 1996, the fund reclassified $1,747,659 to increase
undistributed net investment income and $376,318 to increase paid-
in-capital, with an increase to accumulated net realized loss on
investments of $2,123,977. The calculation of net investment income
per share in the financial highlights table excludes these
adjustments.
F) Amortization of bond premium and accretion of bond discount Any
premium resulting from the purchase of securities in excess of
maturity value is amortized on a yield-to-maturity basis. The
premium in excess of the call price, if any, is amortized to the
call date; thereafter, the remaining excess premium is amortized to
maturity. 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 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, 0.40% of any amount
over $1.5 billion.
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.
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 year ended November 30, 1996, fund expenses were reduced by
$1,117,706 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.
Trustees of the fund receive an annual Trustees fee of $2,450 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 in the fund and are invested in certain Putnam funds until
distribution in accordance with the Plan.
The fund has adopted an unfunded noncontributory defined benefit
pension plan (the "Pension Plan") covering all Trustees of the fund
who have served as Trustee for at least five years. Benefits under
the Pension Plan are equal to 50% of the Trustee's average total
compensation for the three years preceding retirement. Pension
expense for the fund is included in Compensation of trustees in the
Statement of operations. Accrued pension liability is included in
Payable for compensation of Trustees in the Statement of assets and
liabilities.
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 year ended November 30, 1996, Putnam Mutual Funds Corp.,
acting as underwriter received net commissions of $136,250 and $640
from the sale of class A and class M shares, respectively and
$558,363 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, 1996, Putnam Mutual Funds Corp., acting as underwriter received
$703 on class A redemptions.
Note 3
Purchase and sales of securities
During the year ended November 30, 1996, purchases and sales of
investment securities other than short-term investments aggregated
$1,236,026,865 and $1,328,614,973, 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 November 30, 1996, there was an unlimited number of shares of
beneficial interest authorized. Transactions in capital shares were
as follows:
Year ended
November 30, 1996
- ----------------------------------------------------
Class A Shares Amount
- ----------------------------------------------------
Shares sold 49,874,885 $435,955,284
- ----------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 6,955,843 61,013,314
- ----------------------------------------------------
Shares issued in
connection with
the merger of
Putnam New York
Intermediate Tax
Exempt Income
Fund 262,921 2,303,192
- ----------------------------------------------------
57,093,649 499,271,790
Shares
repurchased (71,315,173) (624,195,830)
- ----------------------------------------------------
Net decrease (14,221,524) $(124,924,040)
- ----------------------------------------------------
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
- ----------------------------------------------------
Shares issued in
connection with
the merger of
Putnam New York
Intermediate Tax
Exempt Income
Fund -- --
- ----------------------------------------------------
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, 1996
- ----------------------------------------------------
Class B Shares Amount
- ----------------------------------------------------
Shares sold 4,772,161 $ 41,813,876
- ----------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 780,326 6,829,056
- ----------------------------------------------------
Shares issued in
connection with
the merger of
Putnam New York
Intermediate Tax
Exempt Income
Fund 193,968 1,695,279
- ----------------------------------------------------
5,746,455 50,338,211
Shares
repurchased (4,269,501) (37,263,730)
- ----------------------------------------------------
Net increase 1,476,954 $ 13,074,481
- ----------------------------------------------------
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
- ----------------------------------------------------
Shares issued in
connection with
the merger of
Putnam New York
Intermediate Tax
Exempt Income
Fund -- --
- ----------------------------------------------------
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, 1996
- ----------------------------------------------------
Class M Shares Amount
- ----------------------------------------------------
Shares sold 89,297 $787,821
- ----------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 4,984 43,584
- ----------------------------------------------------
94,281 831,405
Shares
repurchased (17,785) (154,754)
- ----------------------------------------------------
Net increase 76,496 $676,651
- ----------------------------------------------------
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 Income
Fund
On March 11, 1996, the fund issued 262,921 and 193,968 of class A
and B shares, respectively, to the 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 Fund 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 October 31, 1996 shareholder meeting
(Unaudited)
A meeting of shareholders of the fund was held on October 31, 1996.
At the meeting, each of the nominees for Trustees was elected, as
follows:
Votes
Votes for withheld
Jameson Adkins Baxter 152,002,528 2,730,164
Hans H. Estin 152,035,170 2,697,522
John A. Hill 152,084,050 2,648,642
Ronald J. Jackson 151,950,736 2,781,955
Elizabeth T. Kennan 151,964,097 2,768,595
Lawrence J. Lasser 152,037,702 2,694,990
Robert E. Patterson 152,094,558 2,638,113
Donald S. Perkins 151,981,341 2,751,350
William F. Pounds 152,047,734 2,684,957
George Putnam 151,987,108 2,745,584
George Putnam, III 152,045,469 2,687,223
Eli Shapiro 151,696,041 3,036,651
A.J.C. Smith 152,076,188 2,656,503
W. Nicholas Thorndike 152,008,809 2,723,883
A proposal to ratify the selection of Coopers and Lybrand L.L.P. as
auditors for the fund was approved as follows: 148,813,185 votes
for, and 1,189,568 votes against, with 4,729,939 abstentions and
broker non-votes.
A proposal to amend the fund's fundamental investment restriction
with respect to diversification of investments was approved as
follows: 136,267,623 votes for, and 5,898,593 votes against, with
12,566,476 abstentions and broker non-votes.
A proposal to amend the fund's fundamental investment restriction
with respect to investments in the securities of a single issuer was
approved as follows: 133,110,651 votes for, and 7,786,862 votes
against, with 13,835,179 abstentions and broker non-votes.
A proposal to amend the fund's fundamental investment restriction
with respect to making loans through purchases of debt obligations,
repurchase agreements and securities loans was approved as follows:
130,078,548 votes for, and 11,253,439 votes against, with 13,400,705
abstentions and broker non-votes.
A proposal to amend the fund's fundamental investment restriction
with respect to investment in real estate was approved as follows:
132,264,458 votes for, and 9,689,130 votes against, with 12,779,104
abstentions and broker non-votes.
A proposal to amend the fund's fundamental investment restriction
with respect to investments in commodities or commodity contracts
was approved as follows: 130,853,300 votes for, and 10,710,321 votes
against, with 13,169,071 abstentions and broker non-votes.
A proposal to amend the fund's fundamental investment restriction
with respect to concentration of its assets was approved as follows:
134,848,091 votes for, and 6,776,985 votes against, with 13,107,616
abstentions and broker non-votes.
A proposal to eliminate the fund's fundamental investment
restriction with respect to investments in securities of issuers in
which management of the fund or Putnam Investment Management, Inc.
owns securities was approved as follows: 130,645,795 votes for, and
10,179,391 votes against, with 13,907,506 abstentions and broker
non-votes.
A proposal to eliminate the fund's fundamental investment
restriction with respect to margin transactions was approved as
follows: 128,046,343 votes for, and 12,866,956 votes against, with
13,819,393 abstentions and broker non-votes.
A proposal to eliminate the fund's fundamental investment
restriction with respect to short sales was approved as follows:
128,580,470 votes for, and 12,401,850 votes against, with 13,750,372
abstentions and broker non-votes.
A proposal to eliminate the fund's fundamental investment
restriction which limits the fund's ability to pledge assets was
approved as follows: 127,677,693 votes for, and 13,118,067 votes
against, with 13,936,932 abstentions and broker non-votes.
A proposal to eliminate the fund's fundamental investment
restriction with respect to investments in restricted securities was
approved as follows: 128,950,197 votes for, and 11,913,147 votes
against, with 13,869,348 abstentions and broker non-votes.
All tabulations are rounded to nearest whole number.
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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
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
William J. Curtin
Vice President
Jerome J. Jacobs
Vice President
Howard K. Manning
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. You can also learn more
at Putnam Investments' website: http://www.putnaminv.com.
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
- ---------------
29933-030/345/681 1/97
