<PAGE>
PUTNAM MONEY MARKET FUND
SEMIANNUAL REPORT
MARCH 31, 1995
[LOGO]
BOSTON * LONDON * TOKYO
<PAGE>
PERFORMANCE HIGHLIGHTS
". . .[W]ith money fund yields now heading toward 7.0 percent,
many
investment advisors are recommending them as a larger part of
their asset
allocations. Attractive real rates of return at little or no risk
are a hard
thing for most investors to pass up."
-- Money Market Insight, Vol. 7, No. 3, March 1995
Performance should always be considered in light of a fund's
investment
strategy. Putnam Money Market Fund is designed for investors
seeking current
income consistent with capital preservation, stable principal and
liquidity.
SEMIANNUAL RESULTS AT A GLANCE
<TABLE><CAPTION>
<S> <C> <C> <C>
-----------------------------------------------------------------
-----------
TOTAL RETURN: CLASS A CLASS B
CLASS M
-----------------------------------------------------------------
-----------
(change in value during period
plus reinvested distributions)
6 months ended 3/31/95 2.54% 2.28%
1.72%*
-----------------------------------------------------------------
-----------
DISTRIBUTIONS: NUMBER INCOME
TOTAL
-----------------------------------------------------------------
-----------
Class A 6 $0.025098
$0.025098
Class B 6 0.022583
0.022583
Class M 4 0.017119
0.017119
-----------------------------------------------------------------
-----------
CURRENT RETURN: CLASS A CLASS B
CLASS M
-----------------------------------------------------------------
-----------
End of period
Current 7-day yield(1) 5.50% 4.99%
5.38%
Current 30-day yield(1) 5.42 4.92
5.48
-----------------------------------------------------------------
-----------
<FN>
Performance data represent past results, do not guarantee future
results and
will differ for each share class. For performance over longer
periods, see
page 7.
* The fund began offering class M shares on 12/7/94.
(1) The 7-day and 30-day yields are the two most common gauges
for measuring
money market mutual fund performance.
An investment in the fund is neither insured nor guaranteed by
the U.S.
government. There can be no assurance that the fund will be able
to maintain
a stable net asset value of $1.00 per share.
</TABLE>
<PAGE>
FROM THE CHAIRMAN
[PHOTO OF GEORGE PUTNAM]
(C) KARSH, OTTAWA
DEAR SHAREHOLDER:
CONFIDENCE LEVELS IN THE U.S. BOND MARKET HAVE INCREASED
SUBSTANTIALLY SINCE
PUTNAM MONEY MARKET FUND BEGAN ITS FISCAL YEAR THIS PAST OCTOBER.
YOUR FUND'S
PERFORMANCE AS OF MARCH 31, 1995, THE FISCAL YEAR'S HALFWAY
POINT, REFLECTS
THIS CHANGE FOR THE BETTER.
LAST YEAR'S RISING INTEREST RATES MAY HAVE RATTLED THE FINANCIAL
MARKETS, BUT
THEY SEEM TO HAVE SUCCEEDED IN HEADING OFF INFLATION. THE LATTER,
AFTER ALL,
WAS THE FEDERAL RESERVE BOARD'S INTENT AS IT NUDGED SHORT-TERM
RATES HIGHER
THROUGHOUT 1994 AND INTO EARLY 1995.
YIELDS ON SHORT-TERM AND GOVERNMENT SECURITIES AS WELL AS THE
HIGH-QUALITY
CASH-EQUIVALENTS IN WHICH YOUR FUND INVESTS HAVE BENEFITED FROM
THE RECENT
RISES IN INTEREST RATES.
FUND MANAGER LINDSEY CALLEN LOOKS BACK ON THE FIRST HALF OF
FISCAL 1995, THEN
OFFERS A FORECAST FOR THE REMAINING HALF IN HER REPORT TO
SHAREHOLDERS, WHICH
FOLLOWS.
RESPECTFULLY YOURS,
[SIGNATURE]
GEORGE PUTNAM
CHAIRMAN OF THE TRUSTEES
MAY 17, 1995
<PAGE>
REPORT FROM THE FUND MANAGER
LINDSEY M. CALLEN
For the six months ended March 31, 1995, Putnam Money Market Fund
once again
delivered a competitive total return while maintaining its
hallmarks of
superior quality and a stable $1.00 share price. The higher short-
term
interest rates we have seen since early in 1994 prevailed
throughout the
period, providing a favorable investment climate for your fund.
During the period, data from key sectors like manufacturing and
employment
demonstrated ongoing improvement in the U.S. economy. This
continuing
strength motivated the Federal Reserve Board to continue its anti-
inflation
policy by raising short-term interest rates twice more, in
November 1994 and
again in February 1995. However, by early March, some weakness
began to
emerge in housing sales and consumer spending. In response, the
Fed did not
raise interest rates at its March meeting, instead adopting a
"wait and see"
attitude until economic signals become more definitive.
SEEKING VALUE AMID CREDIT-CONSCIOUSNESS AND TIGHT SUPPLY
As money market securities issuers await the next major interest
rate move by
the Fed, many are tabling their financing needs for the time
being. The
market's view on the future direction of interest rates remains
mixed. Some
analysts are anticipating another rise from the Fed while others
expect a
decline as the economy shows more definite signs of slowing. In
any case, the
effect of this uncertainty has been to reduce the supply of money
market
securities during the semiannual period.
The period has also witnessed a "back-to-basics" trend among many
investors.
Your fund has always emphasized simply
<PAGE>
structured traditional money market investments like certificates
of deposit,
commercial paper, government agency discount notes, and simple
floating rate
instruments. After a year in which many money market mutual funds
reached for
additional income by purchasing derivative investments which
plummeted in
value as interest rates began to rise, the credit quality of most
fixed-income securities is now subject to greater scrutiny than
it has been
in years. As a result, the wisdom of our approach has been proven
once again.
Your fund has always focused on traditional money market
securities of the
highest quality. In this environment of low supply and increased
credit-consciousness, we have redoubled our efforts to find well-
valued
securities that meet our criteria for quality, liquidity, and
price
sensitivity. Ideally, every holding must be rated by two or more
nationally
recognized rating services and receive at least two ratings
within the top
two categories. If the security has only been rated by one
service, its
rating must be within that service's top category.
ADOPTING A NEUTRAL, FLEXIBLE STANCE
With the pace of interest rate increases slowing during the past
six months
and their future direction somewhat uncertain, we have begun to
lengthen the
average maturity of the portfolio slightly to place it in a more
neutral
position. We have also begun to re-evaluate our floating-rate
securities
position, which had been built up to maximize the fund's income
when interest
rates were rising rapidly. Many of the fund's floating-rate
holdings will
mature in the next month or so. If we decide to purchase
additional
floating-rate securities, we will target those whose yields reset
every three
months rather than on a weekly basis. This approach is intended
to help the
fund benefit from additional interest rate increases while
helping to protect
it from any declines that might occur as the market adjusts to
economic
change.
<PAGE>
OUR OUTLOOK
We share the opinion of the members of the Federal Reserve Board
-- that it
is too early to tell whether the economy is indeed slowing down
or simply
taking a breather. Some weakness has emerged, although one or two
months of
data do not make a trend. The interest-rate cycle seems to be
near its peak,
yet rates are not excessively high and could remain at their
current levels
for some time. Accordingly, we are keeping the fund flexible. We
expect to
maintain a neutral average portfolio maturity and to continue
taking
advantage of potentially higher interest rates through a position
in
floating-rate securities. Meanwhile, we believe our emphasis on
traditional
high-quality instruments should enable the fund to maintain the
stability
that is most shareholders' top priority.
[FN]
The views expressed in this report are exclusively those of
Putnam
Management, and are not meant as investment advice. Although the
described
holdings were viewed favorably as of 3/31/95, there is no
guarantee the fund
will continue to hold these securities in the future. Past
performance is no
guarantee of future results.
<TABLE><CAPTION>
<S>
<C>
PERFORMANCE COMPARISONS (3/31/95)*
-----------------------------------------------------------------
-----------
CURRENT RETURN
-----------------------------------------------------------------
-----------
PASSBOOK SAVINGS ACCOUNT
2.17%
-----------------------------------------------------------------
-----------
TAXABLE MONEY MARKET FUND 7-DAY YIELD
5.58
-----------------------------------------------------------------
-----------
3-MONTH CERTIFICATE OF DEPOSIT
4.20
-----------------------------------------------------------------
-----------
PUTNAM MONEY MARKET FUND (7-DAY YIELD)
-----------------------------------------------------------------
-----------
CLASS A
5.50
-----------------------------------------------------------------
-----------
CLASS B
4.99
-----------------------------------------------------------------
-----------
CLASS M
5.38
-----------------------------------------------------------------
-----------
<FN>
* The net asset value of money market mutual funds is uninsured
and there is no
assurance the fund will maintain a $1.00 fixed share price.
Distributions
vary daily. The principal value on passbook savings and bank CDs
are
generally insured up to certain limits by state and federal
agencies. Unlike
money market funds, early withdrawals from bank CDs may be
subject to
substantial penalties. Investment returns will fluctuate.
Sources: Bank of Boston (passbook savings), Bank Rate Monitor (3-
month CDs),
IBC/Donaghue's Money Market Fund Report (taxable money market
fund 7-day
yield).
<PAGE>
PERFORMANCE SUMMARY
This section provides, at a glance, information about your fund's
performance. Total return shows how the value of the fund's
shares changed
over time, assuming you held the shares through the entire period
and
reinvested all distributions back into the fund. We show total
return in two
ways: on a cumulative long-term basis and on average how the fund
might have
grown each year over varying periods. For comparative purposes,
we show how
the fund performed relative to appropriate indexes and
benchmarks.
TOTAL RETURN FOR PERIODS ENDED 3/31/95
</TABLE>
<TABLE><CAPTION>
<S> <C> <C> <C> <C> <C> <C>
LIPPER
MONEY
MARKET
CLASS A CLASS B CLASS M FUND
NAV NAV POP NAVAVERAGE CPI
-----------------------------------------------------------------
-------
6 month 2.54% 2.28% -2.72% -- 2.58% 1.34%
-----------------------------------------------------------------
-------
1 year 4.47 3.93 -1.07 -- 4.34 2.85
-----------------------------------------------------------------
-------
5 years 24.46 -- -- -- 24.43 17.64
Annual average4.47 -- -- -- 4.47 3.30
-----------------------------------------------------------------
-------
10 years 76.05 -- -- -- 76.07 42.29
Annual average5.82 -- -- -- 5.82 3.59
-----------------------------------------------------------------
-------
Life of class B-- 8.57 5.57 -- 9.95 8.53
Annual average -- 2.85 1.87 -- 3.30 2.83
-----------------------------------------------------------------
-------
Life of class M-- -- -- 1.72% 1.75 1.14
-----------------------------------------------------------------
-------
<FN>
Fund performance data do not take into account any adjustment for
taxes
payable on reinvested distributions. The fund began operations on
10/1/76,
offering shares now known as class A. Effective 4/27/92, the fund
began
offering class B shares, and on 12/7/94, class M shares.
Performance data
represent past results and will differ for each share class, and
should not
be taken as an assurance for future performance. Investment
returns will
fluctuate.
</TABLE>
<PAGE>
TERMS AND DEFINITIONS
CLASS A SHARES generally are fund shares purchased with an
initial sales
charge. In the case of your fund, which has no sales charge, the
reference is
to shares purchased or acquired through the exchange of class A
shares from
another Putnam fund. Exchange of your fund's class A shares into
another fund
may involve a sales charge, however.
CLASS B SHARES generally are fund shares purchased with no
initial sales
charge but subject to a contingent deferred sales charge (CDSC)
upon
redemption. However, class B shares of your fund can be acquired
only through
exchange of class B shares from another fund or purchased by
certain
systematic investment plan shareholders.
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. The CDSC schedule will vary depending on whether the
shares were
acquired through exchange or through a systematic investment plan
purchase.
Consult your prospectus for details.
CLASS M SHARES have a lower initial sales charge than class A
shares and no
sales charge on redemption.
NET ASSET VALUE (NAV) is the value of all fund assets, minus
liabilities,
divided by the number of outstanding shares. It does not include
any initial
or contingent deferred sales charge.
COMPARATIVE BENCHMARKS
LIPPER MONEY MARKET FUND AVERAGE, used for performance comparison
purposes,
is an arithmetic average of the total return of all money market
mutual funds
tracked by Lipper Analytical Services. Lipper is an independent
rating
organization for the mutual fund industry. Lipper rankings vary
for other
periods. The fund's holdings do not match those in the Lipper
Average.
CONSUMER PRICE INDEX (CPI) is a commonly used measure of
inflation; it does
not represent an investment return.
<PAGE>
PUTNAM FAMILY OF FUNDS
PUTNAM GROWTH FUNDS
Asia Pacific Growth Fund
Capital Appreciation Fund*
Diversified Equity Trust
Europe Growth Fund
Global Growth Fund
Health Sciences Trust
Investors Fund
Natural Resources Fund
New Opportunities Fund
OTC Emerging Growth Fund
Overseas Growth Fund
Vista Fund
Voyager Fund
PUTNAM GROWTH AND INCOME FUNDS
Convertible Income-Growth Trust
Equity Income Fund
The George Putnam Fund of Boston
The Putnam Fund for Growth and Income
Growth and Income Fund II
Managed Income Trust
Utilities Growth and Income Fund
PUTNAM INCOME FUNDS
Adjustable Rate U.S. Government Fund
American Government Income Fund
Diversified Income Trust
Federal Income Trust
Global Government Income Trust
High Yield Advantage Fund
High Yield Trust
Income Fund
Preferred Income Fund
Intermediate U.S. Government Income Fund
U.S. Government Income Trust
PUTNAM TAX-FREE INCOME FUNDS
Intermediate Tax Exempt Fund
Municipal Income Fund
Tax Exempt Income Fund
Tax-Free High Yield Fund
Tax-Free Insured Fund
STATE TAX-FREE INCOME FUNDS(+)
Arizona, California, Florida, Massachusetts, Michigan, Minnesota,
New Jersey,
New York, Ohio and Pennsylvania
LIFESTAGE(SM) FUNDS
Putnam Asset Allocation Funds -- three investment portfolios that
spread your
money across a variety of stocks, bonds, and money market
investments seeking
to help maximize your return and reduce your risk.
THE THREE PORTFOLIOS:
Putnam Asset Allocation: Balanced Portfolio
Putnam Asset Allocation: Conservative Portfolio
Putnam Asset Allocation: Growth Portfolio
MOST CONSERVATIVE INVESTMENTS(++)
PUTNAM MONEY MARKET FUNDS:
California Tax Exempt Money Market Fund
Money Market Fund
New York Tax Exempt Money Market Fund
Tax Exempt Money Market Fund
CDS AND SAVINGS ACCOUNTS(S)
[FN]
* Temporarily closed to new investment.
+ Not available in all states.
++ Relative to above.
(S) Not offered by Putnam Investments. Certificates of deposit
offer a fixed rate of return and may be insured, up to certain
limits, by federal/state agencies. Savings accounts may also be
insured up to certain limits.
Please call your financial advisor or Putnam at 1-800-225-1581 to
obtain a prospectus for any
Putnam fund. It contains more complete information, including
charges and expenses. Read it carefully before you invest or send
money.
<PAGE>
A PUTNAM PERSPECTIVE ON RISK AND REWARD
You've probably been told how important it is to understand the
relationship between an investment's potential rewards and its
accompanying risks. Given the cautionary nature of such
instructions, it may take most investors a while to realize that
risk has a positive side.
EVERY RISK SIGNALS A POTENTIAL REWARD. Selecting only those
investments that offer the greatest degree of security generally
leads to only modest rewards. Furthermore, even insured or
guaranteed investments may be subject to changes in their rates
of return or, in some cases, in their principal values.
Experienced investors know that no investment is truly risk free
and are therefore willing to take on some measure of risk in
order to increase their potential gains.
THE GREATER THE RISK, THE GREATER THE POTENTIAL REWARD.
Accepting an appropriate level of investment risk can give you a
better chance of outpacing inflation over time and seeking to
maximize your investment's return. How much risk? Your financial
advisor's feedback and your time horizon can make all the
difference in determining how much risk is compatible with your
investment goals and your peace of mind.
FITTING YOUR FUND SELECTION TO YOUR RISK TOLERANCE
How do you find the right balance between investment risks and
their potential rewards? It's helpful to understand the types of
risks that can apply to different types of investments, and to
look at your own portfolio with this perspective.
For short-term goals, your first priority may be managing market
risk. Longer-term investors may be more concerned with inflation
risk. And all income-oriented investors should consider interest-
rate, credit, and prepayment risks carefully. Within each of
Putnam's four investment categories, you can select funds with
differing levels of risk and reward potential to customize your
portfolio.
A RUNDOWN OF RISK TYPES
MARKET RISK Most important for stock funds, but relevant to all
funds, this is a measure of how sensitive a fundOs holdings are
to changes in general market conditions. Remember, though, that
securities that lose value quickly in market declines may also
show the strongest gains in more favorable environments.
INTEREST-RATE RISK Since bond prices fall as interest rates
rise, this type of risk is a particular concern for fixed-income
investors. However, interest-rate increases can also have a
substantial negative effect on the stock market.
INFLATION RISK If your investments cannot keep pace with
inflation, your money will begin to lose its purchasing power.
Stock investments are generally considered among the best ways of
addressing inflation risk over the long term.
CREDIT AND PREPAYMENT RISK Credit risk is the concern that the
securityOs issuer will not be able to meet its payment, while
prepayment risk involves the premature payoff of a loan, with a
resulting loss of interest income. Professional management and in-
depth research are invaluable in managing both these risks.
LIQUIDITY RISK Not all investments can be readily converted into
cash at their perceived market values. Liquidity risk can affect
the price of securities held in the fundOs portfolio and, thus,
the fundOs share prices.
This list covers only the most general types of risks; however,
each investment will also have its own specific risks. You will
find a more detailed discussion of these risk considerations in
each fundOs prospectus.
<PAGE>
PORTFOLIO OF INVESTMENTS OWNED
March 31, 1995 (Unaudited)
<TABLE><CAPTION>
COMERCIAL PAPER (60.5%)*
PRINCIPAL AMOUNT
MATURITY DATE VALUE
<C> <S>
<C> <C>
DOMESTIC (40.1%)
-----------------------------------------------------------------
--------------------------
$10,000,000 AES Barbers Point Inc. 6.05s (Bank of America
Letter of Credit (LOC))
4/6/95 $ 9,991,598
8,000,000 AES Barbers Point Inc. 6.02s (Bank of America LOC)
5/12/95 7,945,151
15,000,000 AES Barbers Point Inc. 6s (Bank of America LOC)
4/27/95 14,935,000
25,000,000 American Telephone & Telegraph Co. 6.12s
9/18/95 24,277,500
10,000,000 American Telephone & Telegraph Co. 6.12s
6/20/95 9,864,000
5,000,000 Corporate Asset Funding Co. Inc. 6.17s
10/24/95 4,823,470
5,200,000 Corporate Asset Funding Co. Inc. 6.15s
9/18/95 5,048,983
15,000,000 Corporate Asset Funding Co. Inc. 5.95s
4/6/95 14,987,603
25,000,000 Corporate Receivables Corp. 5.98s
4/7/95 24,975,084
12,000,000 Corporate Receivables Corp. 5.98s
4/4/95 11,994,020
7,000,000 Dayton Hudson Corp. 6.02s
4/18/95 6,980,101
20,000,000 Dayton Hudson Corp. 6.02s
4/17/95 19,946,488
15,000,000 Dayton Hudson Corp. 6.02s
4/3/95 14,994,983
25,000,000 Delaware Funding Corp. 6s
4/20/95 24,920,834
15,000,000 Ford Motor Credit Co. 6.1s
4/19/95 14,954,250
30,000,000 Ford Motor Credit Co. 5.96s
4/10/95 29,955,300
25,000,000 General Electric Capital Corp. 6.53s
7/10/95 24,546,528
25,000,000 General Electric Capital Corp. 6.3s
4/4/95 24,986,875
25,000,000 General Electric Capital Corp. 6.08s
4/17/95 24,932,444
25,000,000 General Motors Acceptance Corp. 6.08s
4/5/95 24,983,111
9,250,000 Heinz (H.J.) Co. 5.99s
5/4/95 9,199,210
25,000,000 Heller Financial Inc. 6s
4/25/95 24,900,000
13,000,000 Metlife Funding Inc. 5.95s
4/5/95 12,991,406
25,000,000 Morgan (J.P.) & Co., Inc. 6.07s
6/28/95 24,629,055
20,000,000 Nationsbank Corp. 6.14s
9/18/95 19,420,111
40,000,000 New Center Asset Trust, 6.05s
6/28/95 39,408,444
15,000,000 Penney (J.C.) Funding Corp. 6.15s
4/19/95 14,953,876
25,000,000 Preferred Receivables Funding Corp. 5.98s
4/18/95 24,929,403
20,000,000 Preferred Receivables Funding Corp. 5.98s
4/4/95 19,990,033
20,000,000 Sheffield Receivables Corp. 6.18s
4/25/95 19,917,600
------------
$550,382,461
FOREIGN (20.4%)***
-----------------------------------------------------------------
--------------------------
$15,000,000 AES Shady Point Inc. 6s (Bank of Tokyo LOC)
4/27/95 $14,935,000
40,000,000 ABN-AMRO North America Finance Inc. 6.43s
7/20/95 39,214,111
10,000,000 ABN-AMRO North America Finance Inc. 5.98s
5/2/95 9,948,455
17,000,000 Bayerische Landesbank Girozentrale, 6.05s
6/14/95 16,788,586
10,300,000 Commerzbank AG, 5.85s
5/10/95 10,234,724
22,000,000 Commerzbank U.S. Finance Inc. 6.2s
4/5/95 21,984,845
15,000,000 Commerzbank U.S. Finance Inc. 5.95s
4/6/95 14,987,604
7,000,000 FPL Fuels Inc. 6.05s (Sumitomo Bank LOC)
5/1/95 6,964,708
8,025,000 Fundex Corp. 6.05s (Sumitomo Bank LOC)
4/10/95 8,012,863
53,000 Fundex Corp. 6.05s (Sumitomo Bank LOC)
4/10/95 52,920
<PAGE>
COMERCIAL PAPER
PRINCIPAL AMOUNT
MATURITY DATE VALUE
FOREIGN (continued)
-----------------------------------------------------------------
--------------------------
$6,000,000 Maguire/Thomas Partners, 6.03s (Sumitomo Bank LOC)
4/25/95 $ 5,975,880
15,000,000 Michelin Tire Corp. 5.98s (Societe Generale LOC)
4/19/95 14,955,150
15,000,000 Pemex Capital Inc. 6.12s (Swiss Bank LOC)
4/20/95 14,951,550
15,000,000 Pemex Capital Inc. 6.02s (Swiss Bank LOC)
5/4/95 14,917,225
15,000,000 Pemex Capital Inc. 6s (Credit Suisse LOC)
4/24/95 14,942,500
10,000,000 Pemex Capital Inc. 6s (Credit Suisse LOC)
4/18/95 9,971,667
6,436,000 Queensland Alumina, 6s (Credit Suisse LOC)
4/18/95 6,417,765
55,000,000 Union Bank Switzerland, 6.35s
4/3/95 54,970,896
------------
280,226,449
-----------------------------------------------------------------
--------------------------
TOTAL COMMERCIAL PAPER (cost $830,608,910)
$830,608,910
-----------------------------------------------------------------
--------------------------
</TABLE>
U.S. GOVERNMENT & AGENCY
OBLIGATIONS (19.5%)*
<TABLE><CAPTION>
<C> <S>
<C> <C>
PRINCIPAL AMOUNT
MATURITY DATE VALUE
-----------------------------------------------------------------
--------------------------
$15,000,000 FEDERAL HOME LOAN MORTGAGE CORP. 5.93S
4/24/95 $14,943,171
25,000,000 Federal Home Loan Mortgage Corp. 5.88s
4/24/95 24,906,083
10,000,000 Federal Home Loan Mortgage Corp. 5.86s
5/15/95 9,928,378
25,000,000 Federal National Mortgage Association
Discount Notes, 6.51s
7/11/95 24,543,396
40,000,000 Federal National Mortgage Association
Discount Notes, 6.1s
5/3/95 39,783,111
25,000,000 Federal National Mortgage Association
Discount Notes, 6.09s
9/11/95 24,310,646
25,000,000 Federal National Mortgage Association
Discount Notes, 5.98s
6/30/95 24,626,250
30,000,000 Federal National Mortgage Association
Discount Notes, 5.98s
6/19/95 29,606,316
50,000,000 Federal National Mortgage Association
Discount Notes, 5.92s
4/3/95 49,983,555
25,000,000 Federal National Mortgage Association
Discount Notes, 5.6s
4/6/95 24,980,556
-----------------------------------------------------------------
--------------------------
TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS
(cost $267,611,462)
$267,611,462
-----------------------------------------------------------------
--------------------------
</TABLE>
BANK NOTES (5.6%)*
<TABLE><CAPTION>
<C> <S>
<C> <C>
PRINCIPAL AMOUNT
MATURITY DATE VALUE
-----------------------------------------------------------------
--------------------------
DOMESTIC
-----------------------------------------------------------------
--------------------------
$15,000,000 First National Bank of Boston, 6.36s
9/26/95 $15,002,650
25,000,000 First National Bank of Boston, 6.25s
4/24/95 25,004,340
10,000,000 First National Bank of Boston, 6.19s
4/12/95 10,001,719
25,000,000 Pittsburgh National Bank, 5.9s
4/26/95 25,004,097
-----------------------------------------------------------------
--------------------------
TOTAL BANK NOTES (cost $75,012,806)
$75,012,806
-----------------------------------------------------------------
--------------------------
</TABLE>
<PAGE>
FLOATING RATE NOTES (4.7%)*
<TABLE><CAPTION>
<C> <S>
<C> <C>
PRINCIPAL AMOUNT
MATURITY DATE VALUE
-----------------------------------------------------------------
--------------------------
DOMESTIC (2.9%)
-----------------------------------------------------------------
--------------------------
$20,000,000 Morgan Guaranty Trust Co. 6.05s
4/18/95 $19,999,315
20,000,000 Pittsburgh National Bank, 6.09s
4/21/95 20,003,383
-----------
$40,002,698
FOREIGN (1.8%)
-----------------------------------------------------------------
--------------------------
$25,000,000 Abbey National, PLC, 6.115s
4/27/95 $25,004,247
-----------------------------------------------------------------
--------------------------
TOTAL FLOATING RATE NOTES (cost $65,006,945)
$65,006,945
-----------------------------------------------------------------
--------------------------
</TABLE>
CERTIFICATES OF DEPOSIT (3.3%)*
<TABLE><CAPTION>
<C> <S>
<C> <C>
PRINCIPAL AMOUNT
MATURITY DATE VALUE
-----------------------------------------------------------------
--------------------------
FOREIGN
-----------------------------------------------------------------
--------------------------
$20,000,000 Rabobank Nederland N.V. 6.3s
4/5/95 $20,003,987
25,000,000 Societe Generale 5.45s
5/22/95 25,005,593
-----------------------------------------------------------------
--------------------------
TOTAL CERTIFICATES OF DEPOSIT (cost $45,009,580)
$45,009,580
-----------------------------------------------------------------
--------------------------
</TABLE>
REPURCHASE AGREEMENT (6.4%)*
<TABLE><CAPTION>
<C> <S>
<C>
PRINCIPAL AMOUNT
VALUE
-----------------------------------------------------------------
--------------------------
$87,949,000 Interest in $510,221,000 joint repurchase
agreement
dated March 31, 1995 with Goldman Sachs & Co.,
Inc.,
due April 3, 1995 with respect to various U.S.
Treasury
obligations -- maturity value of $87,95,027 for an
effective yield of 6.28%
$87,995,027
-----------------------------------------------------------------
--------------------------
TOTAL INVESTMENTS (cost $1,371,244,730)***
$1,371,244,730
-----------------------------------------------------------------
--------------------------
<FN>
* Percentages indicated are based on net assets of $1,372,474,764
which corresponds to a net asset value per share of $1.00 for
class A, class B and class M shares.
*** The aggregate identified cost on a tax basis is the same.
Rates shown on floating rate notes are the current interest rates
on March 31, 1995, which are subject to change based on the terms
of the security.
Percent of total net assets invested in foreign countries at
March 31, 1995:
Switzerland 8.5%
Germany 4.7
Netherlands 3.6
Japan 2.6
France 1.1
</TABLE>
16
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1995 (Unaudited)
<TABLE><CAPTION>
<S>
<C>
ASSETS
-----------------------------------------------------------------
--------------
Investments in securities, at amortized cost (Note 1)
$1,371,244,730
-----------------------------------------------------------------
--------------
Cash
41
-----------------------------------------------------------------
--------------
Interest and other receivables
2,764,318
-----------------------------------------------------------------
--------------
Receivable for shares of the fund sold
17,356,819
-----------------------------------------------------------------
--------------
Other assets
34,262
-----------------------------------------------------------------
--------------
TOTAL ASSETS
$1,391,400,170
-----------------------------------------------------------------
--------------
LIABILITIES
-----------------------------------------------------------------
--------------
Payable for shares of the fund repurchased
16,878,987
-----------------------------------------------------------------
--------------
Distributions payable to shareholders
477,254
-----------------------------------------------------------------
--------------
Payable for compensation of Manager (Note 2)
736,657
-----------------------------------------------------------------
--------------
Payable for administrative services (Note 2)
7,044
-----------------------------------------------------------------
--------------
Payable for compensation of Trustees (Note 2)
112
-----------------------------------------------------------------
--------------
Payable for distribution fees (Note 2)
98,729
-----------------------------------------------------------------
--------------
Payable for investor servicing and custodian fees (Note 2)
579,129
-----------------------------------------------------------------
--------------
Other accrued expenses
147,494
-----------------------------------------------------------------
--------------
TOTAL LIABILITIES
18,925,406
-----------------------------------------------------------------
--------------
NET ASSETS
$1,372,474,764
-----------------------------------------------------------------
--------------
REPRESENTED BY
-----------------------------------------------------------------
--------------
Paid-in capital (Note 4)
$1,372,474,764
-----------------------------------------------------------------
--------------
Net asset value, offering and redemption price per class A share
($1,119,967,294 divided by 1,119,967,294 shares)*
$1.00
-----------------------------------------------------------------
--------------
Offering price per class B share ($251,706,804 divided by
251,706,804 shares)**
$1.00
-----------------------------------------------------------------
--------------
Offering price per class M share ($800,666 by 800,666
shares)***
$1.00
-----------------------------------------------------------------
--------------
<FN>
* Class A shares are offered at net asset value.
** Class B shares are available only by exchange of class B
shares from other
Putnam funds and to certain systematic investment plan investors.
The
applicable contingent deferred sales charge for shares acquired
through
exchange will depend upon the fund from which you exchanged.
*** Class M shares are offered at net asset value.
</TABLE>
<PAGE>
STATEMENT OF OPERATIONS
Six months ended March 31, 1995 (Unaudited)
<TABLE><CAPTION>
<S>
<C>
TAX EXEMPT INTEREST INCOME
$38,991,117
-----------------------------------------------------------------
------------------
EXPENSES:
-----------------------------------------------------------------
------------------
Compensation of Manager (Note 2)
2,432,268
-----------------------------------------------------------------
------------------
Investor servicing and custodian fees (Note 2)
1,556,288
-----------------------------------------------------------------
------------------
Compensation of Trustees (Note 2)
17,315
-----------------------------------------------------------------
------------------
Reports to shareholders
80,605
-----------------------------------------------------------------
------------------
Auditing
18,273
-----------------------------------------------------------------
------------------
Legal
26,419
-----------------------------------------------------------------
------------------
Registration fees
139,107
-----------------------------------------------------------------
------------------
Postage
52,086
-----------------------------------------------------------------
------------------
Administrative services (Note 2)
16,041
-----------------------------------------------------------------
------------------
Distribution fees -- class B (Note 2)
580,851
-----------------------------------------------------------------
------------------
Distribution fees -- class M (Note 2)
136
-----------------------------------------------------------------
------------------
Other
42,796
-----------------------------------------------------------------
------------------
TOTAL EXPENSES
4,962,185
-----------------------------------------------------------------
------------------
NET INVESTMENT INCOME
34,028,932
-----------------------------------------------------------------
------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
$34,028,932
-----------------------------------------------------------------
------------------
</TABLE>
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE><CAPTION>
<S> <C>
<C>
SIX MONTHS
ELEVEN MONTHS
ENDED
ENDED
MARCH 31
SEPTEMBER 30
-----------------------------------------------------------------
---------------
1995*
1994
-----------------------------------------------------------------
---------------
INCREASE IN NET ASSETS
-----------------------------------------------------------------
---------------
Operations:
-----------------------------------------------------------------
---------------
Net investment income $ 34,028,932
$ 30,937,217
-----------------------------------------------------------------
---------------
Net realized loss on investments --
42
-----------------------------------------------------------------
---------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS 34,028,932
30,937,259
-----------------------------------------------------------------
---------------
Distributions to shareholders from:
-----------------------------------------------------------------
---------------
Net investment income
-----------------------------------------------------------------
---------------
Class A (28,742,988)
(27,575,242)
-----------------------------------------------------------------
---------------
Class B (5,281,212)
(3,361,975)
-----------------------------------------------------------------
---------------
Class M (4,732)
--
-----------------------------------------------------------------
---------------
Net realized gain on investments
-----------------------------------------------------------------
---------------
Class A --
(40)
-----------------------------------------------------------------
---------------
Class B --
(2)
-----------------------------------------------------------------
---------------
Increase from capital share transactions (Note 4) 77,116,593
685,660,213
-----------------------------------------------------------------
---------------
TOTAL INCREASE IN NET ASSETS 77,116,593
685,660,213
NET ASSETS
-----------------------------------------------------------------
---------------
Beginning of period 1,295,358,171
609,697,958
-----------------------------------------------------------------
---------------
END OF PERIOD $1,372,474,764
$1,295,358,171
-----------------------------------------------------------------
---------------
<FN>
* Unaudited.
</TABLE>
<PAGE>
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
<TABLE><CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
FOR THE FOR THE
DECEMBER 8, 1994 SIX ELEVEN APRIL 27, 1992 SIX ELEVEN
(COMMENCEMENT MONTHS MONTHS YEAR(COMMENCEMENTMONTHS MONTHS
OF OPERATIONS) ENDED ENDED ENDEDOF OPERATIONS)ENDED ENDED
TO MARCH 31MARCH 31SEPTEMBER 30OCTOBER 31TO OCTOBER 31 MARCH 31
SEPTEMBER 30
---------------------------------------------------------------------------
-------------------------------
1995** 1995** 1994* 1993 1992 1995** 1994*
---------------------------------------------------------------------------
-------------------------------
CLASS M CLASS B CLASS A
---------------------------------------------------------------------------
-------------------------------
Net investment income $.0170 $.0230 $.0251 $.0195 $.0151 $.0300
$.0299
---------------------------------------------------------------------------
-------------------------------
Net realized gain on
investments -- -- -- -- -- (.0060) --
---------------------------------------------------------------------------
-------------------------------
TOTAL FROM INVESTMENT
OPERATIONS .0170 .0230 .0251 .0195 .0151 .0243 .0299
---------------------------------------------------------------------------
-------------------------------
TOTAL DISTRIBUTIONS$(.0170)$(.0230)$(.0251)$(.0195)$(.0151)$(.0240)$(.0299)
---------------------------------------------------------------------------
-------------------------------
TOTAL INVESTMENT
RETURN AT NET
ASSET VALUE 1.72(b) 2.28(b) 2.54(b) 1.98 1.52(b)2.54(b) 3.03(b)
---------------------------------------------------------------------------
-------------------------------
NET ASSETS,
END OF PERIOD$800,666$251,707 $194,187$22,777 $2,864$1,119,967$1,101,
171
---------------------------------------------------------------------------
-------------------------------
Ratio of expenses
to average net
assets (%) .27(b) .57(b) 1.03(b) 1.20 .70(b) .32(b) .58(b)
---------------------------------------------------------------------------
-------------------------------
Ratio of net investment
income to average
net assets (%)1.59(b)2.26(b) 2.77(b) 1.98 1.50(b)2.51(b) 3.03(b)
---------------------------------------------------------------------------
-------------------------------
</TABLE>
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
<TABLE><CAPTION>
<C> <C> <C> <C> <C> <C> <C> <C> <C>
TEN
MONTHS
ENDED
YEAR ENDED OCTOBER 31
OCTOBER 31
---------------------------------------------------------------------------
-------------------------------
1993 1992 1991 1990 1989 1988 1987 1986 1985
---------------------------------------------------------------------------
-------------------------------
Class A
---------------------------------------------------------------------------
-------------------------------
$.0246 $.0353 $.0598 $.0764 $.0853 $.0655 $.0568 $.0642 $.0633
---------------------------------------------------------------------------
-------------------------------
-- -- .0001 -- -- -- -- -- .0001
---------------------------------------------------------------------------
-------------------------------
.0246 .0353 .0599 .0764 .0853 .0655 .0568 .0642 .0634
---------------------------------------------------------------------------
-------------------------------
$(.0246)$ (.0353)$(.0599)$ (.0764)$ (.0853)$ (.0655)$ (.0568)$(.0642) $(.
0634)
---------------------------------------------------------------------------
-------------------------------
2.49 3.58 6.16 7.92 8.87 6.75 5.83 6.61 6.52(b)
---------------------------------------------------------------------------
-------------------------------
$586,920$839,185$684,987$904,186$797,395$659,590$775,954$320,874$275,901
---------------------------------------------------------------------------
-------------------------------
.70 .86 .77 .74 .85 .91 1.01 .89 .71(b)
---------------------------------------------------------------------------
-------------------------------
2.48 3.56 6.04 7.63 8.51 6.67 5.65 6.32 6.30(b)
---------------------------------------------------------------------------
-------------------------------
<FN>
* The fiscal year end has advanced from October 31 to September 30.
** Unaudited.
(a) Total investment return assumes dividend reinvestment and does not
reflect
the effect of sales charges.
(b) Not annualized.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
March 31, 1995 (Unaudited)
NOTE 1
SIGNIFICANT ACCOUNTING POLICIES
Putnam Money Market Fund (the "fund"), is registered under
the Investment Company Act of 1940, as amended as a
diversified, open-end management investment company. The
fund seeks current income consistent with preservation of
capital and maintenance of liquidity. The fund achieves its
objective by investing in a portfolio of high-grade short-
term obligations. The fund may invest up to 100% of its
assets in the banking industry and in commercial paper and
short-term corporate obligations of issuers in the personal
credit institution and business credit industries.
The fund offers class A, class B and class M shares. The
fund commenced its public offering of class M shares on
12/7/94. Each class of shares is sold without a front-end
sales charge. Class B shares are offered only in exchange
for class B shares of other Putnam funds, or purchased by
certain systematic investment plans. Shareholders are
subject to the same CDSC schedule as the fund from which
they were exchanged. Class B shares pay an ongoing
distribution fee, and are subject to a contingent deferred
sales charge if the shares are redeemed within six years of
purchase (including any holding period of the shares in the
other Putnam fund). Class M shares pay an ongoing
distribution fee, but are not subject to a contingent
deferred sales charge. In addition, the Trustees declare
separate dividends on each class of shares. Each class bears
expenses unique to that class (including the distribution
fees applicable to class B shares). 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.
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 The valuation of the fund's portfolio
instruments is determined by means of the amortized cost
method as set forth in Rule 2a-7 under the Investment
Company Act of 1940. The amortized cost of an instrument is
determined by valuing it at cost originally and thereafter
amortizing any discount or premium from its face value at a
constant rate until maturity.
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 from other registered investment
companies managed by Putnam Investment Management, Inc.
("Putnam Management"), the fund's manager, a wholly-owned
subsidiary of Putnam Investments, Inc. and certain other
accounts. These balances may be invested in one or more
repurchase agreements and/or short-term money market
instruments.
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 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 income and excise taxes on income and
capital gains.
E INTEREST INCOME AND DISTRIBUTIONS TO SHAREHOLDERS
Interest is recorded on the accrual basis. Income dividends
are declared daily by the fund and are distributed monthly.
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 nets assets of the fund. Such fee is based on the
following annual rates: 0.5% of the first $100 million of
average net assets 0.4% of the next $100 million. 0.35% of
the next $300 million, 0.325% of the next $500 million, and
0.3% of any amount over $1 billion, subject under current
law to reduction in any year to the extent that expenses
(exclusive of brokerage, interest, taxes, and credits
allowed by Putnam Fiduciary Trust Company (PFTC) a wholly-
owned subsidiary of Putnam Investments, Inc.) of the fund
exceed 2.5% of the first $30 million of average net assets,
2.0% 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 of the fund's portfolio transactions.
The fund also reimburses the Manager for the compensation
and related expenses of certain officers of the fund and
their staff who provide administrative services to the fund.
The aggregate amount of all such reimbursements is
determined annually by the Trustees. Trustees of the fund
receive an annual Trustee's fee of $2,370 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.
Custodian functions for the fund are provided by PFTC.
Investor servicing agent functions are provided by Putnam
Investor Services, a division of PFTC. Investor servicing
and custodian fees reported in the statement of operations
for the six months ended March 31, 1995 have been reduced by
credits allowed by PFTC.
The fund has adopted distribution plans (the "Plans") with
respect to its class B shares 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 Trustees have approved
payment by the fund to Putnam Mutual Funds Corp. at an
annual rate of .50% and .15% of the average net assets
attributable to class B and class M shares, respectively.
For the six months ended March 31, 1995, Putnam Mutual Funds
Corp., acting as the underwriter received no net commissions
from the sale of class A and class B shares.
A deferred sales charge of up to 1% is assessed on certain
redemptions of class A shares purchased as part of an
investment of $1 million or more and acquired by an exchange
from another Putnam fund. For the six months ended March 31,
1995, Putnam Mutual Funds Corp., acting as the underwriter
received $59,667 on class A redemptions.
Putnam Mutual Funds Corp. also receives the proceeds on the
contingent deferred sales charges on its class B
redemptions. The charge is based on declining rates, which
begin at 5% of the net asset value of the redeemed shares,
or based upon the rate of the fund from which a shareholder
exchanges. Putnam Mutual Funds Corp. has informed the fund
that it received $1,328,161 from redemptions for the six
months ended March 31, 1995.
NOTE 3
PURCHASES AND SALES OF SECURITIES
During the six months ended March 31, 1995, purchases and
sales (including maturities) of investment securities (all
short-term obligations) aggregated $19,643,458,945 and
$19,623,253,533, respectively. 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 March 31, 1995, there was an unlimited number of shares
of beneficial interest authorized divided into three
classes, designated class A, class B and class M capital
shares. Transactions in capital shares, at a constant net
asset value of $1.00 per share, were as follows:
<TABLE><CAPTION>
<S> <C> <C>
SIX MONTHS ELEVEN MONTHS
ENDED ENDED
MARCH 31 SEPTEMBER 30
------------------------------------------------------------
-------------------
CLASS A 1995 1994
------------------------------------------------------------
-------------------
Shares sold 2,200,613,407 3,501,703,378
Shares issued in connection with
reinvestment of distributions26,570,667 26,366,112
------------------------------------------------------------
-------------------
2,227,120,074 3,528,069,490
------------------------------------------------------------
-------------------
Shares repurchased (2,208,388,173)(3,013,818,559)
------------------------------------------------------------
-------------------
NET INCREASE 18,795,901 514,250,931
------------------------------------------------------------
-------------------
</TABLE>
<TABLE><CAPTION>
<S> <C> <C>
SIX MONTHS ELEVEN MONTHS
ENDED ENDED
MARCH 31 SEPTEMBER 30
------------------------------------------------------------
-------------------
CLASS B 1995 1994
------------------------------------------------------------
-------------------
Shares sold 483,110,241 652,248,469
Shares issued in connection
with reinvestment of distributions4,453,352 2
,975,467
------------------------------------------------------------
-------------------
487,563,593 655,223,936
------------------------------------------------------------
-------------------
Shares repurchased (430,043,567) (483,814,654)
------------------------------------------------------------
-------------------
NET INCREASE 57,520,026 171,409,282
------------------------------------------------------------
-------------------
</TABLE>
<PAGE>
<TABLE><CAPTION>
<S> <C>
DECEMBER 7, 1994
(COMMENCEMENT
OF OPERATIONS)
TO MARCH 31
------------------------------------------------------------
-------------------
CLASS M 1995
------------------------------------------------------------
-------------------
Shares sold 1,555,234
Shares issued in connection with reinvestment
of distributions 4,196
------------------------------------------------------------
-------------------
1,559,430
------------------------------------------------------------
-------------------
Shares repurchased (758,764)
------------------------------------------------------------
-------------------
NET INCREASE 800,666
------------------------------------------------------------
-------------------
</TABLE>
<PAGE>
FUND INFORMATION
INVESTMENT MANAGER
Putnam Investment
Management, Inc.
One Post Office Square
Boston, MA 02109
MARKETING SERVICES
Putnam Mutual Funds Corp.
One Post Office Square
Boston, MA 02109
CUSTODIAN
Putnam Fiduciary Trust Company
LEGAL COUNSEL
Ropes & Gray
TRUSTEES
George Putnam, Chairman
William F. Pounds, Vice Chairman
Jameson Adkins Baxter
Hans H. Estin
John A. Hill
Elizabeth T. Kennan
Lawrence J. Lasser
Robert E. Patterson
Donald S. Perkins
George Putnam, III
A.J.C. Smith
W. Nicholas Thorndike
OFFICERS
George Putnam
President
Charles E. Porter
Executive Vice President
Patricia C. Flaherty
Senior Vice President
Lawrence J. Lasser
Vice President
Gordon H. Silver
Vice President
Gary N. Coburn
Vice President
William F. McGue
Vice President
Lindsey M. Callen
Vice President and Fund Manager
Blake E. Anderson
Vice President
William N. Shiebler
Vice President
John R. Verani
Vice President
Paul M. O'Neil
Vice President
John D. Hughes
Vice President and Treasurer
Beverly Marcus
Clerk and Assistant Treasurer
This report is for the information of shareholders of Putnam
Money Market
Fund. It may also be used as sales literature when preceded
or accompanied by
the current prospectus, which gives details of sales
charges, investment
objectives, and operating policies of the fund, and the most
recent copy of
Putnam's Quarterly Performance Summary. For more information
or to request a
prospectus, call toll free 1-800-225-1581.
SHARES OF MUTUAL FUNDS ARE NOT DEPOSITS OR OBLIGATIONS OF,
OR GUARANTEED OR
ENDORSED BY, ANY FINANCIAL INSTITUTION, ARE NOT INSURED BY
THE FEDERAL
DEPOSIT INSURANCE CORPORATION (FDIC), THE FEDERAL RESERVE
BOARD OR ANY OTHER
AGENCY, AND INVOLVE RISK, INCLUDING THE POSSIBLE LOSS OF
PRINCIPAL AMOUNT
INVESTED.
<PAGE>
PUTNAM INVESTMENTS
THE PUTNAM FUNDS
One Post Office Square
Boston, Massachusetts 02109
Bulk Rate
U.S. Postage
PAID
Putnam
Investments
010/879-17791
<PAGE>
APPENDIX TO FORM N-30D FILINGS TO DESCRIBE DIFFERENCES
BETWEEN PRINTED AND EDGAR-FILED TEXTS.
(1) Rule lines for tables are omitted.
(2) Italic typefaces is displayed in normal type.
(3) Boldface type is displayed in capital letters.
(4) Headers (e.g. the names of the fund) and footers (e.g.
page numbers and OThe accompanying notes are an
integral part of these financial statementsO) are
omitted.
(5) Because the printed page breaks are not reflected,
certain tabular and columnar headings and symbols are
displayed differently in this filing.
(6) Bullet points and similar graphic symbols are omitted.
(7) Page numbering is different.
