(logo)
Putnam
Corporate
Asset Trust
Annual
Report
November 30, 1993
(artwork)
For corporations seeking high current income qualifying for the
federal 70% corporate dividends-received deduction; for all
investors seeking current income with minimum fluctuations in
principal
Contents
2 How your fund performed
3 From the Chairman
4 Report from Putnam Management
Annual Report
7 Report of Independent Accountants
8 Portfolio of investments owned
11 Financial statements
19 Fund performance supplement
A member
of the Putnam
Family of Funds
<PAGE>
How your
fund performed
For periods ended November 30, 1993
Total return* Fund Consumer
NAV POP Price Index S&P 500
1 year 13.07% 10.23% 2.67% 10.05%
5 years 66.37 62.20 21.20 98.11
annualized 12.72 10.16 3.92 14.65
Life-of-fund
(since 1/4/84) 138.29 132.29 43.93 293.35
annualized 9.16 8.88 3.74 14.82
Share data NAV POP
November 30, 1992 $41.71 $42.78
November 30, 1993 $44.06 $45.19
Distributions paid(a) Investment Capital
12 months ended Number income gains Total
November 30, 1993 12 $2.971 -- $2.971
Current returns Taxable equivalents+
at the end of the period NAV POP NAV POP
Current dividend rate 6.63% 6.46% 9.13% 8.89%
Current 30-day yield 5.91 5.76 8.14 7.93
Total return at end of most recent calendar quarter
Periods ended December 31, 1993
Cumulative Annualized
NAV POP NAV POP
1 year 12.02% 9.21% 12.02% 9.21%
5 years 66.02 61.87 10.67 10.11
Life-of-fund
(since 1/4/84) 137.85 131.87 9.06 8.78
*Performance data represent past results. Investment return and
net asset value will fluctuate so an investor's shares, when
redeemed, may be worth more or less than their original cost.
(a)Capital gains, if any, are taxable.
+The taxable equivalents examples in this report show the return
a corporation taxed at the 35% corporate tax bracket would have
to earn from a non-tax-advantaged investment to produce an
after-tax return equal to the fund's.<PAGE>
Terms you need to know
Total return is the change in value of an investment from the
beginning to the end of a period, assuming the reinvestment of
all distributions. It may be shown at net asset value or at
public offering price.
Net asset value (NAV) is the value of all your fund's assets,
minus any liabilities, divided by the number of outstanding
shares, not reflecting any sales charge.
Public offering price (POP) is the price of a mutual fund share
plus the maximum (2.5%) sales charge levied at the time of
purchase.
Current dividend rate is calculated by annualizing the net
investment income paid to shareholders in the fund's most recent
distribution, then dividing by the NAV or POP on the last day of
the period.
Current 30-day yield, based only on the fund's net investment
income earnings, is calculated in accordance with Securities and
Exchange Commission guidelines.
Taxable equivalent dividend rate is the rate at which a taxable
investment would have to distribute income to equal the rate at
which your fund distributes income. The taxable equivalent
examples in this report assume a corporation taxed at the 35%
federal tax rate and that 100% of the fund's distributions
qualify for the 70% corporate dividends-received deduction.
Please see the fund performance supplement on page 19 for
additional information about performance comparisons.
<PAGE>
From the
Chairman
(photograph of George Putnam)
C Karsh, Ottawa
George Putnam
Chairman
of the Trustees
Dear Shareholder:
Despite a year marked by conflicting economic signals, Putnam
Corporate Asset Trust delivered strong returns for the year ended
November 30, 1993, outpacing the Standard & Poor's 500 Index.
Your fund's strong performance reflects, in large measure, Fund
Manager Sheldon Simon's investment philosophy of careful stock
selection, patience and dedication to long-term results.
We find it particularly rewarding that the fund maintained an
attractive level of income while interest rates continued their
descent to 25-year historic lows. This is largely the result of
Sheldon's ability to anticipate and respond to changes in
economic and market trends.
This is not to say that the fund did not have its share of
challenges during the fiscal period. Paralleling trends in the
fixed income markets, low interest rates have encouraged issuers
of high coupon preferred stocks to refinance at today's lower
rates. Putnam Management has been faced with the task of finding
attractive replacements for the preferred stocks, placing some
pressure on the fund's income stream.
With the passage of the Clinton Administration's Tax Act of 1993,
the tax advantages of the fund have become even more evident. At
the end of the period, corporate shareholders who are in the
maximum 35% tax bracket and qualify for the 70%
dividends-received deduction would have had to earn 9.13% in a
fully taxable investment to match the fund's 6.63% dividend rate
at net asset value.
I'm pleased to add that your fund continues to receive favorable
rankings. The fund retains Morningstar's "above-average"
four-star rating for risk-adjusted performance for the period
ended November 30, 1993. This mutual fund research firm rates
funds relative to others with similar objectives. Ratings are
based on medium- and long-term performance, as applicable, and a
risk/reward analysis linked to the performance of three-month
Treasury bills. They are adjusted for sales charges and updated
every two weeks.. For this and other reasons discussed in the
following Report from Management, Putnam Corporate Asset Trust
continues to offer shareholders many advantages.
<PAGE>
Respectfully yours,
George Putnam
January 19, 1994
<PAGE>
Report from
Putnam Management
Putnam Corporate Asset Trust's performance for the fiscal year
ended November 30, 1993, is a clear indication that this fund is
more than adequately meeting its objective -- delivering high
levels of income with minimum price fluctuation. The fund's
dividend rate at the end of the period was 6.63% at net asset
value.
For corporate shareholders eligible for the 70%
dividends-received deduction, this competitive return becomes all
the more attractive when compared to a taxable investment.
Corporations in the maximum federal income tax bracket of 35%
would have had to earn 9.13% from a fully taxable investment to
match the fund's yield at net asset value. Comparable figures at
public offering price are 6.46% and 8.89%, respectively.
Minor alteration to fund structure The fund's success in
generating attractive income and reduced price volatility is
rooted in its diversified approach to stock investing.
Approximately 87% of the portfolio is invested in the preferred
stock universe -- fixed rate, adjustable rate and sinking fund
preferred stocks. An additional 11% is invested in common stocks.
The fund took on a slightly more conservative posture during the
last few months. This is due in large part to our view of
interest rates, which touched 25-year lows during the fiscal
period. While rates have risen somewhat during the past few
months -- mostly in response to positive economic indicators --
we expect them to operate in a fairly narrow band over the near
term. However, we are cautiously watching for signs that rates
may rise -- signals that typically accompany a strengthening
economy.
Consequently, we have slightly increased our position in
adjustable rate preferred stocks (ARPs), since these securities
are among the few investments that offer the potential for rising
dividends in a rising interest rate environment. They have the
added benefit of limited price fluctuations, since generally,
their dividends are automatically adjusted each quarter in
response to prevailing interest rates.
<PAGE>
(line graph)
Cumulative total return on a $10,000 investment since 1/4/84
Putnam Corporate Asset Trust
_____ at NAV
- ----- at POP
***** Consumer Price Index
+++++ Standard & Poor's 500 Index
date/ S&P fund at fund at Consumer
year 500 NAV POP Price Index
1/4/84 10000 10000 9525 10000
11/30/84 10270 10610 10345 10395
11/30/85 13254 12414 12104 10760
11/30/86 16926 14257 13900 10898
11/30/87 16122 13386 13051 11392
11/30/88 19859 14321 13963 11876
11/30/89 25891 15896 15499 12428
11/30/90 25054 15812 15417 13208
11/30/91 30171 18636 18170 13603
11/30/92 35740 21074 20547 14018
11/30/93 39339 23828 22232 14393
Past performance is no assurance of future results.
Low interest rates spawn refinancings Low interest rates have
created a surge of refinancings. Throughout the marketplace,
high-yielding preferred stocks have been called at an increasing
rate -- a trend we expect to continue into the next fiscal year.
Consequently, the fund's income production has been under some
pressure. Some preferreds with an 8% coupon or higher have been
replaced by preferreds that offer yields around 7%, sometimes
lower. Our task has been to find adequate replacements that meet
our stringent criteria.
Because it is Putnam Management's policy to maintain distribution
levels that reflect the current earnings potential of the fund's
portfolio, a modest adjustment was recently made to the fund's
daily accrual rate. As a result, effective with the December 1993
distribution payable in January 1994, the monthly distribution of
$0.24 per share was reduced to $0.23.
Common stock strategy: income and growth Given our expectations
of a slowly growing economy over the next several months, we have
been focusing on industries likely to provide attractive growth
rates and reliable earnings in such an environment. Three of
these industries -- pharmaceuticals, chemicals and utilities --
currently offer attractive value at relatively low prices.
Portfolio allocation (based on net assets on 11/30/93)
- ------------------------------------------------------
Fixed rate preferred stocks ......................36.4%
Adjustable rate preferred
stocks (ARPs) ..................29.0%
Sinking fund preferred stocks .........19.1%
Common stocks ....11.2%
Convertible preferred stocks ..2.7%
Short-term .0.7%
Pharmaceuticals The Clinton administration's health care reform
package has negatively influenced prices of many drug company
stocks. While the release of the Clinton proposal is only the
beginning of an evolving discussion about the goals and costs of
such a program, we believe the companies in the portfolio have
the predisposition to become winners regardless of the final
outcome of reform efforts.
Chemicals Union Carbide Corp. and Dow Chemical are two examples
of current holdings that could benefit from increased sales and
pricing power as the economy improves. With enhanced levels of
profitability, dividends as well as the prices of these chemical
stocks could increase, favorably impacting your fund's income
stream and net asset value.
Energy Oil and gas stocks, such as Chevron, have historically
provided attractive growth opportunities -- especially in an
expanding economy. The presence of these stocks also offers one
additional long-term advantage. Their growth potential can help
protect your investment dollars from the erosive effects of
inflation.
Looking ahead In recent months, the U.S. economy and the
financial markets have been driven by a continued recovery,
albeit slow, and reactions to President Clinton's key economic
proposals. Many of these proposals, including higher personal and
corporate tax rates, reduction of the federal budget deficit and
health care reform, have made it difficult to gauge the direction
of the stock market.
The ability to fine-tune a portfolio in response to economic and
business conditions demonstrates the many advantages of
professional management. Operating within the guidelines of the
fund's explicit investment objectives, we are able to alter the
allocation between the types of securities as well as among the
many industries that make up the portfolio. In this way, we are
actively pursuing the fund's twin goals of high income production
and reduced price fluctuation.
We believe that patience, combined with the strength and depth of
Putnam's research team, will help us uncover many significant
investment opportunities in fiscal 1994. We look forward to
helping you seek your financial goals in the new year.
<PAGE>
Putnam
Corporate
Asset Trust
Annual
Report
For the Year Ended November 30, 1993
Report of Independent Accountants
To the Trustees and Shareholders of
Putnam Corporate Asset Trust
In our opinion, the accompanying statement of assets and
liabilities, including the portfolio of investments owned, and
the related statements of operations and of changes in net assets
and the financial highlights present fairly, in all material
respects, the financial position of Putnam Corporate Asset Trust
(the "Fund") at November 30, 1993, and the results of its
operations, the changes in its net assets, and the financial
highlights for the periods indicated, in conformity with
generally accepted accounting principles. These financial
statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's
management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits
of these financial statements in accordance with generally
accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant
estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits,
which included confirmation of portfolio positions at November
30, 1993 by correspondence with the custodian and brokers and the
application of alternative auditing procedures where
confirmations from brokers were not received, provide a
reasonable basis for the opinion expressed above.
Price Waterhouse
Boston, Massachusetts
January 13, 1994
<PAGE>
Portfolio of
investments owned
November 30, 1993
Preferred Stocks (84.5%)(a)
Number of Shares Value
Utilities (29.1%)
12,960 Alabama Power Co. $8.16, preferred (pfd.) $1,344,600
30,000 Alabama Power Co. Ser. 1992-2A, $1.90, pfd. 787,500
72,000 Alabama Power Co. Ser. 1993-A, $1.25,
Adjustable Rate Preferred (ARP) 1,782,000
12,900 Arizona Public Service Co. Sinking Fund,
Ser. S, $8.48, pfd. 1,309,350
20,000 Central Maine Power Co. Sinking Fund,
Ser. A, $7.999, pfd. 2,000,000
20,000 Cincinnati Gas & Electric Co.
Sinking Fund, $9.15, pfd. 2,125,000
20,000 Cincinnati Gas & Electric Co.
Sinking Fund, $7.375, pfd. 2,105,000
10,000 Cleveland Electric Illuminating Co.
Sinking Fund, Ser. R, $8.80, pfd. 966,250
7,476 Cleveland Electric Illuminating Co.
Sinking Fund, Ser. M, $7.00, ARP 747,600
7,070 Commonwealth Edison Co. Ser. A, $8.40, pfd. 721,140
15,000 Duke Power Co. Ser. Y, $7.04, pfd. 1,515,000
40,000 Georgia Power Co. Ser. 1993-A, $1.2925, ARP 1,030,000
17,522 Gulf States Utilities Co. $8.52, pfd. 1,782,864
10,000 Indiana Michigan Power Co. Sinking
Fund, $5.90, pfd. 970,000
9,000 Jersey Central Power & Light Co.
Ser. E, $7.88, pfd. 927,000
80,000 Long Island Lighting Co. Sinking
Fund, $0.4875, pfd. 2,020,000
100,000 New York State Electric & Gas Co.
Ser. A, $1.875, ARP 2,550,000
40,000 Niagara Mohawk Power Corp. Ser. C,
$1.75, ARP 1,030,000
39,800 Niagara Mohawk Power Corp. Ser. A,
$1.625, ARP 980,075
25,000 PacifiCorp Sinking Fund, $7.48, pfd. 2,700,000
20,000 Pennsylvania Power & Light Co. $6.75 pfd. 1,945,000
10,000 Pennsylvania Power & Light Co.
Sinking Fund, $6.33, pfd. 1,025,000
10,000 Pennsylvania Power & Light Co.
Sinking Fund, $6.125, pfd. 1,012,500
10,000 Philadelphia Electric Co., Ser. 9,
$7.80, pfd. 1,010,000
40,000 Texas Utilities Electric Co.,
Ser. B, $1.805, dep. shs. pfd. 980,000
<PAGE>
9,381 Virginia Electric & Power Co.
Sinking Fund, $7.30, pfd. 969,761
15,000 Virginia Electric & Power Co. Sinking
Fund, $6.35, pfd. 1,560,000
6,000 West Penn Power Co. Ser. I, $7.64, pfd. 623,250
23,200 Western Resources, Inc. Sinking
Fund, $7.58, pfd. 2,407,000
10,000 Wisconsin Public Service Co., $6.88, pfd. 1,035,000
41,960,890
Banks (23.1%)
50,304 Amerco Ser. A, $2.125, pfd. 1,194,720
110,000 Banesto Holdings, $2.625, pfd.(b)(c) 3,121,250
100,000 Bank of Boston Corp. Ser. E, $2.15, pfd. 2,625,000
62,000 Bank of Boston Corp. Ser. F, $1.96875, pfd. 1,596,500
35,000 BankAmerica Corp. Ser. B, $6.00, ARP 3,045,000
20,000 Chase Manhattan Corp. Ser. F, $3.175, ARP 997,500
50,000 Chase Manhattan Corp. Ser. H, $2.44, pfd. 1,437,500
14,000 Chemical Banking Corp. $1.895, dep.
shs. pfd. 357,000
554,000 Chemical Banking Corp. Ser. C, $0.66, ARP 6,717,250
17,400 Citicorp 3rd Ser., $7.00, ARP 1,705,200
11,000 Citicorp 2nd Ser., $6.00, ARP 957,000
52,000 First Chicago Corp. $3.50, ARP 2,580,500
45,000 First Interstate Bancorp Ser. G, $2.25, dep.
shs. pfd. 1,231,875
15,000 Indosuez Holdings ADS, $2.59375, pfd.(b)(c) 421,875
60,000 Lasalle National Corp. Ser. K,
$4.375, pfd.(b) 3,285,000
40,000 Union Bank Corp. Ser. A, $2.09375,
dep. shs. pfd. 1,035,000
35,000 Westpac Banking ADS, $3.00, pfd.(c) 971,250
33,279,420
Insurance (9.4%)
143,500 Aon Corp. $2.00, pfd. 3,784,813
86,210 SunAmerica Corp. Ser. C, $7.00, ARP 8,448,580
50,000 Travelers Corp. Ser. B, $2.3125,
dep. shs. pfd. 1,350,000
13,583,393
Finance (5.6%)
10,000 Bear, Stearns & Co., Inc. Ser. A,
$2.75, ARP 495,000
80,000 Bear, Stearns & Co., Inc. Ser. B,
$1.97, pfd. 2,000,000
80,000 Credit Lyonnais Capital ADR,
$2.375, pfd.(b)(c) 2,180,000
45,000 Heller Financial Inc. Ser. A,
$2.03125, sr. pfd. 1,158,750
<PAGE>
10,000 Primerica Corp. Ser. A, $2.03125,
dep. shs. pfd. 256,250
20,000 Torchmark Corp. Ser. A, $7.00, ARP 2,020,000
8,110,000
Oil Services (3.8%)
57,500 LASMO PLC ADS Ser. A, $2.50, pfd.(c) 1,286,563
133,900 McDermott Inc. Sinking Fund, Ser. B,
$0.81, pfd. 4,184,375
5,470,938
Automobiles (2.9%)
35,500 Ford Motor Corp. Ser. B, $2.0625, dep.
shs. pfd. 954,063
115,000 General Motors Corp. Ser. B, $2.28125
dep. shs. pfd. 3,191,250
4,145,313
Oils (2.9%)
81,950 USX Corp. $3.75, ARP 4,138,475
Forest Products (2.2%)
120,000 Boise Cascade Corp. Ser. F, $2.35,
dep. shs. pfd. 3,150,000
Gas Pipelines (1.8%)
13,000 ENSERCH Corp. Ser. E, $7.00, dep. shs. ARP 1,319,500
25,000 ENSERCH Corp. Ser. D, $3.75, ARP 1,275,000
2,594,500
Business Equipment and Services (1.5%)
39,900 Xerox Corp. Sinking Fund, $2.06125, pfd. 2,144,625
Restaurants (1.1%)
61,000 McDonald's Corp. Ser. E, $1.93, dep.
shs. pfd. 1,601,250
Broadcasting (0.8%)
49,500 Newscorp Overseas Corp. $2.16, pfd. 1,225,123
Natural Gas (0.3%)
15,000 Phillips Gas Co. Ser. A, $2.33, pfd. 408,750
Total Preferred Stocks
(cost $120,149,024) $121,812,677
<PAGE>
Common Stocks (11.2%)(a)
Number of Shares Value
Utilities (2.6%)
35,000 Northeast Utilities Co. $818,125
40,000 Western Resources, Inc. 1,355,000
50,000 Detroit Edison Co. 1,612,500
3,785,625
Chemicals (2.5%)
20,000 du Pont (E.I.) de Nemours & Co., Ltd. 952,500
20,000 Dow Chemical Co. 1,162,500
20,000 Olin Corp. 900,000
30,000 Union Carbide Corp. 622,500
3,637,500
Retail (1.5%)
50,000 K mart Corp. 1,175,000
17,000 Sears, Roebuck & Co. 924,375
2,099,375
Tobacco (1.2%)
30,000 Philip Morris Cos., Inc. 1,676,250
Insurance (1.0%)
34,000 Lincoln National Corp. 1,479,000
Oils (0.9%)
15,000 Chevron Corp. 1,303,125
Health Care (0.7%)
16,000 American Home Products Corp. 1,002,000
Metals and Mining (0.6%)
50,000 Freeport-McMoRan, Inc. 856,250
Natural Gas (0.2%)
15,000 UGI Corp. 328,125
Total Common Stocks (cost $15,409,231) $16,167,250
<PAGE>
Convertible Preferred Stocks (2.7%)(a)
Number of Shares Value
29,000 Burlington Northern, Inc. Ser. A,
$3.125, cv. pfd. $1,975,625
10,000 Freeport-McMoRan, Inc. $8.75, cv. pfd. 472,500
25,000 Unocal Corp. $3.50, cv. pfd. 1,437,500
Total Convertible Preferred Stocks
(cost $3,206,850) $3,885,625
Short-Term Investments (0.7%)(a)
Principal Amount Value
$1,022,000 Interest in $476,193,000 joint repurchase
agreement dated November 30, 1993 with Kidder
Peabody; due December 1, 1993 with respect
to various U.S. Treasury obligations --
maturity value of $1,022,182 for an effective
yield of 3.2% $1,022,091
Total Investments
(cost $139,787,193)(d) $142,887,643
(a) Percentages indicated are based on total net assets of
$144,185,077, which correspond to a net asset value per share of
$44.06.
(b) Securities exempt from registration under Rule 144A of the
Securities Act of 1933. These securities may be resold in
transactions exempt from registration, normally to qualified
institutional buyers. At November 30, 1993, these securities
amounted to $9,008,125 or 6.3%.
(c) Securities whose value is determined or significantly
influenced by trading on exchanges not in the United States or
Canada. ADS and ADR after the name of a foreign holding stands
for American Depository Shares and American Depository Receipt,
respectively, representing ownership of foreign securities on
deposit with a domestic custodian bank.
(d) The aggregate identified cost for federal income tax purposes
is $139,795,892, resulting in gross unrealized appreciation and
depreciation of $5,237,735 and $2,145,984, respectively, or net
unrealized appreciation of $3,091,751.
<PAGE>
<TABLE>
<CAPTION>
Statement of
assets and liabilities
November 30, 1993
<S> <C> <C>
Assets
Investments in securities, at value (identified cost
$139,787,193) (Note 1) $142,887,643
Cash 889
Dividends, interest and other receivables 1,063,861
Receivable for shares of the Fund sold 804,310
Receivable for securities sold 1,494,000
Total assets 146,250,703
Liabilities
Payable for securities purchased $1,443,750
Distributions payable to shareholders 290,943
Payable for shares of the Fund repurchased 20,383
Payable for compensation of Manager (Note 2) 235,684
Payable for administrative services (Note 2) 1,178
Payable for compensation of Trustees (Note 2) 207
Payable for investor servicing and custodian fees
(Note 2) 45,364
Other accrued expenses 28,117
Total liabilities 2,065,626
Net assets $144,185,077
Represented by
Paid-in capital (Note 4) $202,585,540
Undistributed net investment income 213,197
Accumulated net realized loss on investments and options (61,714,110)
Net unrealized appreciation of investments and options 3,100,450
Total -- Representing net assets applicable to capital
shares outstanding $144,185,077
Computation of net asset value and offering price
Net asset value and redemption price per share
($144,185,077 divided by 3,272,697 shares) $44.06
------
Offering price per share (100/97.5 of $44.06)* $45.19
*On single retail sales of less than $250,000. On sales of $250,000 or more the offering
price is reduced.
/TABLE
<PAGE>
<TABLE>
<CAPTION>
Statement of
operations
Year ended November 30, 1993
<S> <C> <C>
Investment income:
Dividends $11,205,699
Interest 22,922
Total investment income 11,228,621
Expenses:
Compensation of Manager (Note 2) $952,544
Investor servicing and custodian fees (Note 2) 169,774
Compensation of Trustees (Note 2) 13,943
Reports to shareholders 23,704
Auditing 31,526
Legal 10,521
Administrative services (Note 2) 10,159
Other 1,557
Total expenses 1,213,728
Net investment income 10,014,893
Net realized gain on investments (Notes 1 and 3) 4,555,029
Net realized loss on options (Notes 1 and 3) (82,780)
Net unrealized appreciation of investments and options
during the year 3,611,654
Net gain on investments and options 8,083,903
Net increase in net assets resulting from operations $18,098,796
/TABLE
<PAGE>
<TABLE>
<CAPTION>
Statement of
changes in net assets
Year ended November 30
--------------------------
1993 1992
<S> <C> <C>
Increase in net assets
Operations:
Net investment income $10,014,893 $11,212,307
Net realized gain on investments 4,555,029 849,053
Net realized gain (loss) on options (82,780) 302,687
Net unrealized appreciation of investments and
options 3,611,654 4,093,118
Net increase in net assets resulting from
operations 18,098,796 16,457,165
Distributions to shareholders from net
investment income (9,985,928) (11,145,264)
Increase (decrease) from capital share
transactions (Note 4) (6,305,696) 7,378,434
Total increase in net assets 1,807,172 12,690,335
Net assets
Beginning of year 142,377,905 129,687,570
End of year (including undistributed net
investment income of $213,197 and $184,232,
respectively) $144,185,077 $142,377,905
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Financial
highlights*
(For a share outstanding throughout the period)
For the period
December 12, 1983
(commencement
of operations) to
Year ended November 30 November 30
------------------------------------
1993 1992 1991 1990 1989 1988 1987 1986 1985 1984**
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $41.71 $40.02 $37.10 $41.23 $40.91 $42.08 $49.65 $48.19 $46.55 $48.75
Investment Operations
Net Investment Income 2.98 3.41 3.50 3.73 3.92 4.12 3.79 4.50 5.19 4.74(a)
Net Realized and
Unrealized Gain (Loss)
on Investments 2.34 1.68 2.89 (3.96) .42 (1.27) (6.54) 2.34 2.32 (1.94)
Total from Investment
Operations 5.32 5.09 6.39 (.23) 4.34 2.85 (2.75) 6.84 7.51 2.80
Less Distributions From:
Net Investment Income (2.97) (3.40) (3.47) (3.90) (4.02) (4.02) (3.73) (4.54) (5.21) (4.55)
Net Realized Gain on
Investments -- -- -- -- -- -- (1.09) (.84) (.66) (.45)
Total Distributions (2.97) (3.40) (3.47) (3.90) (4.02) (4.02) (4.82) (5.38) (5.87) (5.00)
Net Asset Value,
End of Period $44.06 $41.71 $40.02 $37.10 $41.23 $40.91 $42.08 $49.65 $48.19 $46.55
<PAGE>
Total Investment
Return, at Net
Asset Value (%)(b) 13.07 13.08 17.86 (0.53) 11.00 6.99 (6.11) 14.84 17.00 6.71(c)
Net Assets End
of Period
(in thousands) $144,185 $142,378 $129,688 $137,136 $134,316 $195,960 $304,386 $436,038 $185,050 $79,088
Ratio of Expenses
to Average Net
Assets (%) .83 .83 .93 .95 .83 .77 .69 .70 .86 .99(a)(c)
Ratio of Net
Investment Income
to Average Net
Assets (%) 6.83 8.23 8.98 9.55 9.18 9.75 7.92 9.10 10.92 11.42(a)(c)
Portfolio Turnover (%)114.53 188.68 157.11 208.58 178.42 135.50 174.79 260.04 286.60 237.58(d)
*Financial highlights for periods ending through November 30, 1993 have been restated to conform with requirements
issued by the SEC in April 1993.
**Investment operations commenced on January 4, 1984.
(a) Reflects a voluntary expense limitation applicable during the period. As a result of such limitation, expenses of
the Fund for the period ended November 30, 1984 reflect a reduction of $0.01 per share.
(b) Total investment return assumes dividend reinvestment and does not reflect the effect of sales charges.
(c) Annualized.
(d) Not annualized.
/TABLE
<PAGE>
Notes to
financial statements
November 30, 1993
Note 1 Significant accounting policies
The Fund is registered under the Investment Company Act of 1940,
as amended, as a diversified, open-end management investment
company. The Fund seeks high after-tax income for corporate
shareholders and current income for all investors with minimum
fluctuations in principal.
The following is a summary of significant accounting policies
consistently followed by the Fund in the preparation of its
financial statements. The policies are in conformity with
generally accepted accounting principles.
A) Security valuation Investments for which market quotations are
readily available are stated at market value, which is determined
using the last reported sales price, or, if no sales are reported
- -- as in the case of some securities traded over-the-counter --
the last reported bid price, except that certain U.S. government
obligations are stated at the mean between the bid and asked
prices. Securities whose market quotations are not readily
available are stated at fair value on the basis of valuations
furnished by pricing services approved by the Trustees, which
determine valuations for normal, institutional-size trading units
of such securities using methods based on market transactions for
comparable securities and various relationships between
securities that are generally recognized by institutional
traders. Short-term investments having remaining maturities of 60
days or less are stated at amortized cost, which approximates
market value, and other investments are stated at fair value
following procedures approved by the Trustees. (See paragraph E
of Note 1 with respect to valuation of options outstanding.)
B) Joint trading account Pursuant to an exemptive order issued by
the Securities and Exchange Commission the Fund may transfer
uninvested cash balances into a joint trading account, along with
the cash of other registered investment companies managed by
Putnam Investment Management, Inc. (Putnam Management) (formerly
known as Putnam Management Company, Inc.), the Fund's Manager, a
wholly-owned subsidiary of Putnam Investments, Inc. (formerly
known as The Putnam Companies, Inc.), and certain other accounts.
These balances may be invested in one or more repurchase
agreements and/or short-term money market instruments.
<PAGE>
C) Repurchase agreements The Fund, or any joint trading account,
through its custodian, receives delivery of the underlying
securities, the market value of which at the time of purchase is
required to be in an amount at least equal to the resale price,
including accrued interest. The Fund's Manager is responsible for
determining that the value of these underlying securities is at
all times at least equal to the resale price, including accrued
interest.
D) 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 and dividend income is recorded on the ex-dividend
date.
E) Option accounting principles When the Fund writes a call
option, an amount equal to the premium received by the Fund is
included in the Fund's "Statement of assets and liabilities" as
an asset and an equivalent liability. The amount of the liability
is subsequently "marked-to-market" to reflect the current market
value of the option written. The current market value of an
option is the last sale price or, in the absence of a sale, the
last offering price. If an option expires on its stipulated
expiration date, or if the Fund enters into a closing purchase
transaction, the Fund realizes a gain (or loss if the cost of a
closing purchase transaction exceeds the premium received when
the option was written) without regard to any unrealized gain or
loss on the underlying security, and the liability related to
such option is extinguished. If a written call option is
exercised, the Fund realizes a gain or loss from the sale of the
underlying security and the proceeds of the sale are increased by
the premium originally received.
The Fund writes covered call options; that is, options for which
it holds the underlying security or its equivalent. Accordingly,
the risk in writing a call option is that the Fund relinquishes
the opportunity to profit if the market price of the underlying
security increases and the option is exercised.
F) 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 subject to Section 4982 of the Internal Revenue
Code of 1986. Therefore, no provision has been made for federal
taxes on income, capital gains or unrealized appreciation of
securities held and excise tax on income and capital gains.
At November 30, 1993, the Fund had a capital loss carryover of
approximately $150,632,000. This amount includes approximately
$83,504,000 of capital loss carryovers acquired in connection
with the Fund's acquisition of the net assets of Putnam Corporate
Cash Trust-Adjustable Rate Preferred Portfolio on July 16, 1990
which expires at various dates through July 13, 1998.
The amount of the capital loss carryover that can be used to
offset realized capital gains by the Fund in any one year may be
limited by the Internal Revenue Code and Regulations. To the
extent that capital loss carryovers are used to offset realized
capital gains, it is unlikely that gains so offset would be
distributed to shareholders since any such distribution might be
taxable as ordinary income.
Loss
Carryovers
Expiration
$7,003,000 November 30, 1995
64,235,000 November 30, 1996
40,491,000 November 30, 1997
27,937,000 July 13, 1998
5,705,000 November 30, 1998
5,261,000 November 30, 1999
The Fund has designated 100% of the investment income as
qualifying for the dividends-received deduction for corporations.
G) Distributions to shareholders The Fund declares a distribution
each day based upon the projected net investment income and
short-term capital gains for a period, usually two months,
calculated as if earned pro-rata throughout the period on a daily
basis. Such distributions are recorded daily and paid monthly.
Long-term capital gain distributions, if any, are recorded by the
Fund on the ex-dividend date and paid annually.
Note 2 Management fee, administrative services, and other
transactions
Compensation of Putnam Management, the Fund's Manager, a
wholly-owned subsidiary of Putnam Investments, Inc., for
management and investment advisory services is paid quarterly
based on the average net assets of the Fund for the quarter. Such
fee is based on the following annual rates: 0.65% of the first
$500 million of average net assets, 0.55% of the next $500
million, 0.50% of the next $500 million, and 0.45% of any amount
over $1.5 billion, subject to reduction in any year to the extent
that expenses (exclusive of brokerage, interest and taxes) of the
Fund exceed 2.5% of the first $30 million of average net assets,
2% of the next $70 million and 1.5% of any amount over $100
million and by the amount of certain brokerage commissions and
fees (less expenses) received by affiliates of the Manager on the
Fund's portfolio transactions.
The Fund also reimburses the Manager for the compensation and
related expenses of certain officers of the Fund and their staff
who provide administrative services to the Fund. The aggregate
amount of all such reimbursements is determined annually by the
Trustees. For the year ended November 30, 1993, the Fund paid
$10,159 for these services.
Trustees of the Fund receive an annual Trustee's fee of $1,080
and an additional fee for each Trustees' meeting attended.
Trustees who are not interested persons of the Manager and who
serve on committees of the Trustees receive additional fees for
attendance at certain committee meetings.
Custodial functions for the Fund are provided by Putnam Fiduciary
Trust Company (PFTC), a subsidiary of Putnam Investments, Inc.
Investor servicing agent functions are provided by Putnam
Investor Services, a division of PFTC. Fees paid for these
investor servicing and custodial functions for the year ended
November 30, 1993 amounted to $169,774.
Investor servicing and custodian fees reported in the statement
of operations for the year ended November 30, 1993 have been
reduced by credits allowed by PFTC.
During the year ended November 30, 1993, Putnam Mutual Funds
Corp., (formerly known as Putnam Financial Services, Inc.),
acting as an underwriter, received net commissions of $57,383
from the sale of shares of the Fund.
A deferred sales charge of up to 1% is assessed on certain
redemptions of shares purchased as part of an investment of $1
million or more. For the year ended November 30, 1993, Putnam
Mutual Funds Corp., acting as underwriter, received $25,275 on
redemptions.
Note 3 Purchases and sales of securities
During the year ended November 30, 1993, purchases and sales of
investment securities other than short-term investments
aggregated $164,375,091 and $170,467,660, respectively. In
determining the net gain or loss on securities sold, the cost of
securities has been determined on the identified cost basis.
Written call option transactions during the year are summarized
as follows:
Shares Subject Premiums
to Option Received
Options outstanding at beginning of year 32,000 $108,876
Options written 74,000 166,149
106,000 275,025
Options exercised (52,000) (133,275)
Options closed (54,000) (141,750)
(106,000) (275,025)
Written call options outstanding at end of year-- $--<PAGE>
<TABLE>
<CAPTION>
Note 4 Capital shares
At November 30, 1993, there was an unlimited number of shares of beneficial interest
authorized. Transactions in capital shares were as follows:
Year ended November 30
1993 1992
------------------------ ----------------------
Shares Amount Shares Amount
<S> <C> <C> <C> <C>
Shares sold 827,510 $36,078,443 765,882 $31,950,262
Shares issued in
connection with
reinvestment of
distributions 129,569 5,651,539 132,188 5,504,293
957,079 41,729,982 898,070 37,454,555
Shares repurchased (1,098,310) (48,035,678) (724,450) (30,076,121)
Net increase
(decrease) (141,231) $(6,305,696) 173,620 $7,378,434
/TABLE
<PAGE>
Fund performance supplement
Putnam Corporate Asset Trust is a portfolio managed for high
after-tax income for corporations through the federal corporate
dividends-received deduction and for current income for all
investors, with minimum fluctuations in principal, primarily
through equity securities. Standard & Poor's 500 Index is an
unmanaged list of large-capitalization common stocks, and assumes
reinvestment of all distributions. The index does not take into
account brokerage commissions or other costs. The fund's
portfolio contains securities that do not match those in the
index.
The Consumer Price Index is a commonly used measure of inflation;
it does not represent an investment return.
The fund performance supplement has been prepared by Putnam
Management to provide additional information about the fund and
the indexes used for performance comparisons. The information is
not part of the portfolio of investments owned or the financial
statements and notes.
<PAGE>
Putnam
Corporate
Asset Trust
Fund information
Investment manager
Putnam Investment
Management, Inc.
One Post Office Square
Boston, MA 02109
Marketing services
Putnam Mutual Funds Corp.
One Post Office Square
Boston, MA 02109
Investor servicing agent
Putnam Investor Services
Mailing address:
P.O. Box 41203
Providence, RI 02940-1203
1-800-225-1581
Custodian
Putnam Fiduciary
Trust Company
Legal counsel
Ropes & Gray
Independent accountants
Price Waterhouse
(DALBAR logo)
Putnam Investor Services has received the DALBAR award each year
since the award's 1990 inception. In more than 10,000 tests of 38
shareholder service components, Putnam outperformed the industry
standard in every category.
0X/0V-10018<PAGE>
Officers
George Putnam
President
Charles E. Porter
Executive Vice President
Patricia C. Flaherty
Senior Vice President
Lawrence J. Lasser
Vice President
Gordon H. Silver
Vice President
John R. Verani
Vice President
Peter Carman
Vice President
Sheldon Simon
Vice President and
Fund Manager
William N. Shiebler
Vice President
John D. Hughes
Vice President and Treasurer
Paul O'Neil
Vice President
Beverly Marcus
Clerk and Assistant Treasurer
Trustees
George Putnam, Chairman,
William F. Pounds, Vice Chairman,
Hans H. Estin, John A. Hill,
Elizabeth T. Kennan, Lawrence J. Lasser,
Robert E. Patterson, Donald S. Perkins,
George Putnam, III, A.J.C. Smith,
W. Nicholas Thorndike
This report is for the information of shareholders of Putnam
Corporate Asset Trust. It may also be used as sales literature
when preceded or accompanied by the current prospectus, which
gives details of sales charges, investment objectives and
operating policies of the fund.<PAGE>
- ---------------
Bulk Rate
U.S. Postage
Paid
Boston, MA
Permit No. 53749
- ---------------
PUTNAM INVESTMENTS
The Putnam Funds
One Post Office Square
Boston, Massachusetts 02109
<PAGE>
APPENDIX TO FORM N30D FILINGS TO DESCRIBE DIFFERENCES BETWEEN
PRINTED AND EDGAR-FILED TEXTS:
(1) Rule lines for tables are omitted.
(2) Boldface and italic typefaces are displayed in normal type.
(3) Headers (e.g, the name of the fund) and footers (e.g., page
numbers and "The accompanying notes are an integral part of these
financial statements") are omitted.
(4) Because the printed page breaks are not reflected, certain
tabular and columnar headings and symbols are displayed
differently in this filing.
(5) Bullet points and similar graphic signals are omitted.
(6) Page numbering is different.
