PUTNAM
MONEY MARKET
FUND
[Artwork]
ANNUAL REPORT
September 30, 1995
[Putnam Logo]
Boston * London * Tokyo
<PAGE>
<PAGE>
PERFORMANCE HIGHLIGHTS
"In just five years, total assets of money funds have grown by
72%, and in the
not-too-distant future, assets should break the elusive $1
trillion barrier....
There are many factors contributing to asset growth. One of the
most important
has been the tremendous acceptance of money funds as a viable
cash alternative
to traditional market securities."
-- IBC Money Market Insight, September 1995
Performance should always be considered in light of a fund's
investment strate-
gy. Putnam Money Market Fund is designed for investors seeking
current income
consistent with capital preservation, stable principal, and
liquidity.
FISCAL 1995 RESULTS AT A GLANCE
- -----------------------------------------------------------------
- -------------
CLASS A CLASS B
CLASS M*
TOTAL RETURN: NAV NAV
NAV
- -----------------------------------------------------------------
- -------------
(change in value during period
plus reinvested earnings)
12 months ended 9/30/95 5.33% 4.80%
--
- -----------------------------------------------------------------
- -------------
10 months ended 9/30/95 -- --
4.43%
- -----------------------------------------------------------------
- -------------
DISTRIBUTIONS: NUMBER INCOME
TOTAL
- -----------------------------------------------------------------
- -------------
Class A 12 $0.052076
$0.052076
- -----------------------------------------------------------------
- -------------
Class B 12 0.046941
0.046941
- -----------------------------------------------------------------
- -------------
Class M* 10 0.043416
0.043416
- -----------------------------------------------------------------
- -------------
CURRENT RETURN: CLASS A CLASS B
CLASS M
- -----------------------------------------------------------------
- -------------
End of period
Current 7-day yield(1) 5.21% 4.70%
5.06%
- -----------------------------------------------------------------
- -------------
Current 30-day yield(1) 5.24 4.69
5.26
- -----------------------------------------------------------------
- -------------
Performance data represent past results and are no assurance of
future per-
formance and will differ for each share class. For performance
over longer
periods, see page 7. (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 va-
lue of $1.00 per share.
* The fund began offering class M shares on 12/8/94.
<PAGE>
FROM THE CHAIRMAN [Photograph of
George Putnam]
* (C) Karsh,
Ottawa
DEAR SHAREHOLDER:
PUTNAM MONEY MARKET FUND ENDS ONE FISCAL YEAR AND BEGINS ANOTHER
IN ONE OF THE
MOST LIVELY BOND MARKETS IN YEARS. INFLATION APPEARS TO HAVE
PEAKED
AT 3%, A
LOWER LEVEL THAN IN THE MID-1980S. WITH MODEST GROWTH, IT COULD
FALL
LOWER, MA-
KING REAL YIELDS EVEN MORE ATTRACTIVE THAN THEY ARE NOW.
THIS FAVORABLE ENVIRONMENT BELIES THE CHALLENGES YOUR FUND FACED
DURING THE 12
MONTHS ENDED SEPTEMBER 30, 1995, AS THE ECONOMY SLOWED AND
INTEREST
RATES
- -- ESPECIALLY SHORT-TERM RATES -- BEGAN A DESCENT. THE DECLINE IN
SHORT-TERM RA-
TES WAS FORESHADOWED WHEN THE FEDERAL RESERVE BOARD OPTED NOT TO
ADJUST RATES
UPWARD IN FEBRUARY, THEN WAS CONFIRMED AS THE FED ACTUALLY
LOWERED RATES IN
JULY.
FUND MANAGER LINDSEY STRONG'S CHALLENGE IN THIS ENVIRONMENT WAS
TO STAY AHEAD
OF THE TREND, WHICH SHE DID BY EXTENDING THE AVERAGE MATURITY OF
THE SECURITIES
IN THE PORTFOLIO. SHE MADE THE MOVE BEFORE THE FED'S JULY RATE
CUT,
THUS HELPING
THE FUND MAINTAIN ITS COMPETITIVE EDGE. LINDSEY'S REPORT FOR
FISCAL
1995 AND HER
OUTLOOK FOR THE MONTHS AHEAD APPEAR ON THE FOLLOWING PAGES.
RESPECTFULLY YOURS,
GEORGE PUTNAM
CHAIRMAN OF THE TRUSTEES
NOVEMBER 15, 1995
* (C) Copyright
<PAGE>
REPORT FROM THE FUND MANAGER
LINDSEY C. STRONG
The 12 months ended September 30, l995, marked another year of
solid performance
for Putnam Money Market Fund. Our challenge during the period was
to manage the
fund in an environment when the economy and the direction of
interest rates
changed course rather dramatically. Throughout the period, we
maintained an ac-
tive investment strategy of selecting high-quality short-term
instruments for
the portfolio, and this resulted in a steady stream of monthly
income and a
stable share price of $1.00 per share.
A CHANGED INVESTMENT ENVIRONMENT
During the last quarter of l994, economic growth remained strong
and concerns
about increased inflation dominated the financial markets. At
that time, the
Federal Reserve Board's anti-inflation policy of periodically
raising short-term
interest rates was in full force. Even as the Fed was raising
rates for the last
time in February l995, the success of its anti-inflation policy
was becoming
apparent. The growth in gross domestic product (GDP) slowed from
5.1% during the
fourth quarter of l994 to 2.8% during the first quarter of l995.
During the se-
cond quarter of l995, GDP declined to 0.50%. By early summer,
recession fears
began to mount, and in July, the Fed lowered short-term interest
rates from
6.0% to 5.75%. Toward the end of the summer, leading economic
indicators began
to show signs of strength, and recession concerns abated.
However, the Fed took
no other action.
CAPITALIZING ON INTEREST-RATE MOVES
As interest rates fluctuated during the period, our strategy
centered on maxi-
mizing income while at the same time maintaining a high quality
portfolio of
securities. To this end, while interest rates were rising, we
shortened the
average maturity of the portfolio. This allowed us to take
advantage of incre-
mentally higher yields.
<PAGE>
When it became apparent that rates were unlikely to rise further,
we reversed
our approach, seeking to lock in higher yields by lengthening the
average matu-
rity of the portfolio. Finally, toward the end of the fiscal
year, as the direc-
tion of interest rates became somewhat uncertain, we put the
fund's average ma-
turity in a more neutral position. It is no longer as short as it
was very early
in the period, nor is it as long as it was in the summer.
During the first six months of the fiscal year, a portion of your
fund's invest-
ments were in floating-rate securities. These were advantageous
for the fund
when interest rates were rising rapidly. Many of these securities
matured by
the end of March, and we replaced them with fixed-rate
instruments. The fund
benefited from the relatively high yields the fixed-rate
securities offered,
at a time when interest rates began to decline.
SECURITY SELECTION FOCUSED ON QUALITY
We continued to invest in traditional money market securities of
the highest
quality, such as certificates of deposit, commercial paper, and
government agen-
cy discount notes. For most of the period, supply was tight,
particularly for
securities with maturities in the six-months to one-year range.
When issuers be-
lieve that interest rates will decline, they tend to generate
more
- -----------------------------------------------------------------
- --------------
PERFORMANCE COMPARISONS (9/30/95)
- -----------------------------------------------------------------
- --------------
CURRENT
RETURN*
PASSBOOK SAVINGS ACCOUNT 2.01%
TAXABLE MONEY MARKET FUND (7-DAY YIELD) 5.35
3-MONTH CERTIFICATE OF DEPOSIT ("CD") (AS OF 9/21/95) 3.26
PUTNAM MONEY MARKET FUND (7-DAY YIELD)
CLASS A 5.21
CLASS B 4.70
CLASS M 5.06
- -----------------------------------------------------------------
- --------------
The net asset value of money market mutual funds is uninsured
and designed to
be fixed, while distributions vary daily. Investment returns
will fluctuate.
The principal value on passbook savings and bank CDs is
generally insured up
to certain limits by state and federal agencies. CDs, unlike
money market
funds which incur more risks, offer a fixed rate of return.
Unlike money mar-
ket funds, early withdrawals from bank CDs may be subject to
substantial pe-
nalties.
* Sources: Bank of Boston (passbook savings), Bank Rate Monitor
(3-month CDs),
IBC/Donaghue's Money Fund Report (taxable money market fund
7-day yield).
<PAGE>
short-term (under six months) debt instruments. This allows them
to issue addi-
tional debt more cheaply when rates decline.
As always, our strict standards for investing in any security
remained intact.
Every holding at the time of acquisition 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 been rated by only one service,
its rating must
be within the service's top two categories.
OUR OUTLOOK
Going forward, we will be monitoring the economic environment
very carefully.
Because the Fed seems to have achieved its goal of low inflation
and a slowly
growing economy, we believe interest rates could decline modestly
in the months
ahead. However, we do not expect to see extremely steep declines
in rates such
as the ones we experienced in l993.
Because your fund's average maturity is relatively neutral, we
believe it is
well positioned to generate a relatively high amount of income
even if rates
decline. In the months ahead, we will continue to seek a
competitive amount of
income by investing in a well-diversified portfolio of
traditional money market
instruments and, as always, maintaining our emphasis on stability
of principal,
high quality, and liquidity.
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 9/30/95, there is no guarantee the fund
will continue to
hold these securities in the future.
<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, assum-
ing you held the shares through the entire period and reinvested
all distribu-
tions back into the fund.
TOTAL RETURN FOR PERIODS ENDED 9/30/95
- -----------------------------------------------------------------
- --------------
LIPPER
CONSUMER
CLASS A CLASS B CLASS M MONEY MARKET
PRICE
NAV NAV CDSC NAV FUND INDEX
INDEX
- -----------------------------------------------------------------
- --------------
1 year 5.33% 4.80% -0.21% -- 5.37%
2.54%
- -----------------------------------------------------------------
- --------------
5 years 23.14 -- -- -- 23.81
15.45
Annual average 4.25 -- -- -- 4.36
2.91
- -----------------------------------------------------------------
- --------------
10 years 74.15 -- -- -- 76.43
41.46
Annual average 5.70 -- -- -- 5.84
3.53
- -----------------------------------------------------------------
- --------------
Life of class B -- 11.24 8.24 -- 13.33
9.82
Annual average -- 3.15 2.34 -- 3.73
2.77
- -----------------------------------------------------------------
- --------------
Life of class M -- -- -- 4.43% 4.59
2.34
- -----------------------------------------------------------------
- --------------
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 sha-
res now known as class A. The fund began offering class B shares
on 4/27/92 and
class M on 12/8/94. Performance data represents past results and
are not indica-
tive of future returns. Investment returns will fluctuate. 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.
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 sa-
les 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. How-
ever, class B shares of your fund can be acquired only through
exchange of class
B shares from another fund or purchased by certain systematic
plan shareholders.
A contingent deferred sales charge is a charge applied at the
time of 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 exchan-
ge or through a systematic investment plan purchase. Consult your
prospectus
for details.
CLASS M SHARES generally have a lower initial sales charge and a
higher 12b-1
fee than class A shares and no sales charge on redemption. In the
case of your
fund, which has no sales charge, exchange of your fund's class M
shares into
another fund may involve a sales charge, however.
NET ASSET VALUE (NAV) is the value of all fund assets, minus
liabilities, divi-
ded by the number of outstanding shares. It does not include any
initial or con-
tingent deferred sales charge.
COMPARATIVE BENCHMARKS
LIPPER MONEY MARKET FUND INDEX, is an equally-weighted average
reflecting per-
formance of the 30 largest money market funds tracked by Lipper,
analytical
services.
CONSUMER PRICE INDEX (CPI) is a commonly used measure of
inflation; it does not
represent an investment return.
<PAGE>
PUTNAM GROWTH FUNDS
Asia Pacific Growth Fund Capital Appreciation
Fund*
Diversified Equity Trust Europe Growth Fund
Global Growth Fund Health Sciences Trust
International New Opportunities Fund Investors Fund
Natural Resources Trust New Opportunities Fund
OTC Emerging Growth Fund Overseas Growth Fund
Vista Fund Voyager Fund
Voyager Fund II**
PUTNAM GROWTH AND INCOME FUNDS
Balanced Retirement Fund 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
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 Governmental Income Trust High Yield Advantage
Fund
High Yield Trust Income Fund
Intermediate U.S. Government Income Fund Preferred 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 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
* Temporarily closed to new investors.
** Formerly Putnam Growth Fund.
+ Not available in all states.
++ Relative to above.
*** 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, in-
cluding charges and expenses. Read it carefully before you
invest or send
money.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
For the fiscal year ended September 30, 1995
To the Trustees and Shareholders of
Putnam Money Market Fund
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 Money
Market Fund
("the fund"), at September 30, 1995, 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 state-
ments and financial highlights (hereafter referred to as
"financial statements")
are the responsibility of the fund's management; our
responsibility is to ex-
press 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 account-
ing principles used and significant estimates made by management,
and evaluating
the overall financial statement presentation. We believe that our
audits, which
included confirmation of investments owned at September 30, 1995
by correspon-
dence with the custodian, provide a reasonable basis for the
opinion expressed
above.
Price Waterhouse LLP
Boston, Massachusetts
November 10, 1995
<PAGE>
PORTFOLIO OF INVESTMENTS OWNED
September 30, 1995
COMMERCIAL PAPER (82.1%)*
PRINCIPAL AMOUNT MATURITY DATE
VALUE
DOMESTIC (54.1%)
- -----------------------------------------------------------------
- --------------
$25,000,000 AESBarbers Point Inc. 6.05s (Bank of
America Letter of Credit (LOC) 10/27/95 $
24,888,778
15,000,000 American Telephone & Telegraph
Co. 5.57s 12/1/95
14,853,788
17,055,000 Bank of New York 5.73s 10/16/95
17,008,852
25,000,000 Bell Atlantic Financial Services 5.72s 10/24/95
24,900,694
30,000,000 Bell Atlantic Financial Services 5.71s 10/19/95
29,904,833
5,000,000 Ciesco Inc. 6.05s 11/7/95
4,967,229
50,000,000 Ciesco Inc 5.70s 10/31/95
49,932,426
5,000,000 Corporate Asset Funding Co. Inc. 6.17s 10/24/95
4,978,576
15,000,000 Corporate Asset Funding Co. Inc. 5.72s 11/3/95
14,916,583
20,600,000 Corporate Asset Funding Co. Inc. 5.68s 11/6/95
20,476,492
20,000,000 Corporate Asset Funding Co. Inc. 5.68s 10/18/95
19,940,044
35,000,000 Delaware Funding Corp. 5.65s 11/20/95
34,714,361
20,000,000 Ford Motor Credit Co. 5.72s 10/23/95
19,923,733
35,000,000 Ford Motor Credit Co. 5.71s 10/5/95
34,966,692
22,800,000 General Electric Capital Corp. 5.74s 10/12/95
22,752,741
25,000,000 General Electric Capital Corp. 5.65s 11/20/95
24,795,972
25,000,000 General Motors Acceptance Corp. 5.80s 10/30/95
24,875,139
25,000,000 General Motors Acceptance Corp. 5.78s 10/2/95
24,987,958
40,000,000 Heller Financial Inc. 5.68s 11/2/95
39,785,422
35,000,000 Household Financial Co. 5.70s 11/9/95
34,772,792
20,000,000 IBMCredit Corp. 5.74s 10/20/95
19,933,033
20,000,000 IBMCredit Corp. 5.72s 11/8/95
19,872,889
10,000,000 Metlife Funding Inc. 5.72s 10/16/95
9,972,989
10,000,000 Nationsbank Corp. 5.91s 11/8/95
9,934,333
30,000,000 Nationsbank Corp. 5.655s 3/4/96
29,260,138
40,000,000 New Center Asset Trust, 5.76s 10/5/95
39,961,600
15,000,000 New Center Asset Trust, 5.74s 10/18/95
14,954,558
20,000,000 Preferred Receivables Funding Corp. 5.75s 10/3/95
19,987,222
20,000,000 Preferred Receivables Funding Corp. 5.73s 10/25/95
19,917,233
14,650,000 Preferred Receivables Funding Corp. 5.73s 10/20/95
14,601,032
35,000,000 Sears Roebuck Acceptance Corp. 5.75s 10/17/95
34,899,375
15,000,000 Sears Roebuck Acceptance Corp. 5.72s 10/23/95
14,942,800
25,000,000 Sheffield Receivables Corp. 5.74s 10/16/95
24,932,236
25,000,000 Sheffield Receivables Corp. 6.18s 10/4/95
24,980,069
- ----------------
$
786,492,612
<PAGE>
COMMERCIAL PAPER (Continued)
PRINCIPAL AMOUNT MATURITY DATE
VALUE
FOREIGN (28.0%)
- -----------------------------------------------------------------
- --------------
$22,500,000 Abbey National PLC, 5.67s 1/16/96 $
22,118,500
30,000,000 Abbey National PLC, 5.67s 11/15/95
29,777,925
40,000,000 ABN Amro, 5.57s 4/5/96
38,830,300
10,000,000 ABN Amro, 5.55s 12/22/95
9,870,500
45,000,000 Bank of Nova Scotia 5.65s 10/19/95
44,858,750
15,550,000 Cofco Credit 5.69s (Credit Suisse LOC) 11/17/95
15,429,570
15,000,000 Commonwealth Bank of Australia 5.53s 3/15/96
14,612,900
15,000,000 Cosco Credit 5.67s (Credit Suisse LOC) 11/30/95
14,853,525
10,000,000 Fundex Corp. 5.84s (Sumitomo Bank LOC) 10/10/95
9,982,156
15,000,000 Maguire/Thomas Partners, 5.80s (Sumitomo
Bank LOC) 10/3/95
14,990,333
25,000,000 National Australia Funding 5.57s 12/1/95
24,756,312
6,725,000 Omnicom Finance 5.73s (Swiss Bank LOC) 10/31/95
6,690,747
20,000,000 Omnicom Finance 5.73s (Swiss Bank LOC) 10/20/95
19,933,150
15,000,000 Pemex Capital Inc. 5.67s (Swiss Bank LOC) 10/17/95
14,957,475
20,615,000 Queensland Alumina, Ltd. 5.70s (Credit
Swiss LOC) 11/21/95
20,442,006
20,000,000 Societe General 5.61s 12/20/95
19,744,433
26,000,000 Societe General 5.54s 3/22/96
25,299,806
60,000,000 Union Bank of Switzerland 6.5s 10/2/95
59,989,167
- ----------------
$
407,137,555
- ----------------
TOTAL COMMERCIAL PAPER
(cost $1,193,630,167)
$1,193,630,167
U.S. GOVERNMENT & AGENCY OBLIGATIONS (3.3%)*
PRINCIPAL AMOUNT MATURITY DATE
VALUE
- -----------------------------------------------------------------
- --------------
$25,000,000 Federal Home Loan Mortgage Corp. 6.00s 1/16/96 $
24,545,833
25,000,000 Federal National Mortgage Association
Discount Notes, 5.48s 4/12/96
24,254,111
- ----------------
TOTAL U.S. GOVERNMENT & AGENCY
Obligations (cost $48,799,944) $
48,799,944
BANK NOTES (4.8%)*
PRINCIPAL AMOUNT MATURITY DATE
VALUE
- -----------------------------------------------------------------
- --------------
$10,000,000 Bank of America 5.75s 10/20/95 $
10,000,252
10,000,000 First National Bank of Boston, 6.32s 10/10/95
10,000,000
25,000,000 Morgan Guaranty Trust Co. 5.95s 7/18/96
25,000,000
25,000,000 Morgan Guaranty Trust Co. 5.75s 8/7/96
24,995,250
- ----------------
TOTAL BANK NOTES (cost $69,995,502) $
69,995,502
<PAGE>
CERTIFICATES OF DEPOSIT (6.9%)*
PRINCIPAL AMOUNT MATURITY DATE
VALUE
- -----------------------------------------------------------------
- --------------
$30,000,000 Bayerische Lanesbank 5.75s 11/2/95 $
30,000,000
40,000,000 Royal Bank of Canada 6.24s 10/31/95
40,050,024
10,000,000 Royal Bank of Canada 5.65s 3/15/96
9,996,535
5,000,000 Societe Generale 6.18s 11/6/94
5,004,050
15,000,000 Swiss Bank Corp. 5.72s 3/25/96
14,996,315
- ----------------
TOTAL CERTIFICATES OF DEPOSIT
(cost $100,046,924) $
100,046,924
REPURCHASE AGREEMENT (5.4%)* (cost $79,115,120)
PRINCIPAL AMOUNT
VALUE
- -----------------------------------------------------------------
- --------------
$79,087,000 Interest in $234,608,000 with joint repurchase
agreement dated September 29, 1995 with
Lehman Brothers, Inc., due October 2, 1995
with respect to various U.S. Treasury obligations
-- maturity value of $79,129,180 for an effective
yield of 6.40% $
79,115,120
- -----------------------------------------------------------------
- --------------
TOTAL INVESTMENTS (cost $1,491,587,657)***
$1,491,587,657
- -----------------------------------------------------------------
- --------------
NOTES
* Percentages indicated are based on net assets of
$1,454,613,466, which co-
rresponds to a net asset value per share of $1.00 per class
A, class B and
class M shares.
*** The aggregate identified cost on a tax basis is the same.
Percent of total net assets invested in foreign countries at
September 30,
1995:
Switzerland 11.5%
Canada 6.5%
United Kingdom 3.6%
France 3.4%
Netherlands 3.3%
Australia 2.7%
Germany 2.1%
Japan 1.8%
The accompanying notes are an integral part of these financial
statements.
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1995
ASSETS
- -----------------------------------------------------------------
- --------------
Investments in securities, at amortized cost (Note 1)
$1,491,587,657
- -----------------------------------------------------------------
- --------------
Cash
552
- -----------------------------------------------------------------
- --------------
Interest and other receivables
2,108,953
- -----------------------------------------------------------------
- --------------
Receivable for shares of the fund sold
24,713,679
- -----------------------------------------------------------------
- --------------
TOTAL ASSETS
1,518,410,841
LIABILITIES
- -----------------------------------------------------------------
- --------------
Payable for shares of the fund repurchased
61,163,147
- -----------------------------------------------------------------
- --------------
Distributions payable to shareholders
647,591
- -----------------------------------------------------------------
- --------------
Payable for compensation of Manager (Note 2)
831,669
- -----------------------------------------------------------------
- --------------
Payable for administrative services (Note 2)
6,851
- -----------------------------------------------------------------
- --------------
Payable for compensation of Trustees (Note 2)
1,019
- -----------------------------------------------------------------
- --------------
Payable for distribution fees (Note 2)
107,103
- -----------------------------------------------------------------
- --------------
Payable for investor servicing and custodian fees (Note 2)
861,604
- -----------------------------------------------------------------
- --------------
Other accrued expenses
178,391
- -----------------------------------------------------------------
- --------------
TOTAL LIABILITIES
63,797,375
- -----------------------------------------------------------------
- --------------
NET ASSETS
$1,454,613,466
REPRESENTED BY
- -----------------------------------------------------------------
- --------------
Paid-in capital (Note 4)
$1,454,613,466
- -----------------------------------------------------------------
- --------------
Net asset value, offering and redemption price per class A share
($1,189,639,582 divided by 1,189,639,582 shares)*
$1.00
- -----------------------------------------------------------------
- --------------
Net asset value and offering price per class B share
($256,533,435 divided by 256,533,435 shares)**
$1.00
- -----------------------------------------------------------------
- --------------
Net asset value, offering and redemption price per class M share
($8,440,449 divided by 8,440,449 shares)*
$1.00
- -----------------------------------------------------------------
- --------------
* 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 appli-
cable contingent deferred sales charge will depend upon the
fund from which
you exchanged.
The accompanying notes are an integral part of these financial
statements.
<PAGE>
STATEMENT OF OPERATIONS
For the year ended September 30, 1995
INTEREST INCOME:
$81,328,984
- -----------------------------------------------------------------
- --------------
EXPENSES:
- -----------------------------------------------------------------
- --------------
Compensation of Manager (Note 2)
4,812,695
- -----------------------------------------------------------------
- --------------
Investor servicing and custodian fees (Note 2)
3,001,694
- -----------------------------------------------------------------
- --------------
Compensation of Trustees (Note 2)
37,388
- -----------------------------------------------------------------
- --------------
Reports to shareholders
189,896
- -----------------------------------------------------------------
- --------------
Auditing
36,646
- -----------------------------------------------------------------
- --------------
Legal
37,993
- -----------------------------------------------------------------
- --------------
Registration fees
314,376
- -----------------------------------------------------------------
- --------------
Postage
156,827
- -----------------------------------------------------------------
- --------------
Administrative services (Note 2)
29,760
- -----------------------------------------------------------------
- --------------
Distribution fees -- class B (Note 2)
1,207,547
- -----------------------------------------------------------------
- --------------
Distribution fees -- class M (Note 2)
3,588
- -----------------------------------------------------------------
- --------------
Other
26,504
- -----------------------------------------------------------------
- --------------
Total expenses
9,854,914
- -----------------------------------------------------------------
- --------------
Fees paid indirectly (Note 2)
(8,545)
- -----------------------------------------------------------------
- --------------
Net expenses
9,846,369
- -----------------------------------------------------------------
- --------------
Net investment income
71,482,615
- -----------------------------------------------------------------
- --------------
Net increase in net assets resulting from operations
$71,482,615
- -----------------------------------------------------------------
- --------------
The accompanying notes are an integral part of these financial
statements.
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
FOR THE
ELEVEN MONTHS
YEAR ENDED
ENDED
SEPTEMBER 30
SEPTEMBER 30
1995
1994
- -----------------------------------------------------------------
- --------------
INCREASE IN NET ASSETS
- -----------------------------------------------------------------
- --------------
Operations:
- -----------------------------------------------------------------
- --------------
Net investment income $71,482,615
$30,937,217
- -----------------------------------------------------------------
- --------------
Net realized gain on investment transactions --
42
- -----------------------------------------------------------------
- --------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 71,482,615
30,937,259
- -----------------------------------------------------------------
- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (59,886,945)
(27,575,242)
Class B (11,472,948)
(3,361,975)
Class M (122,722)
--
- -----------------------------------------------------------------
- --------------
Net realized gain on investments
Class A --
(40)
Class B --
(2)
- -----------------------------------------------------------------
- --------------
Increase from capital share transactions
(Note 4) 159,255,295
685,660,213
- -----------------------------------------------------------------
- --------------
TOTAL INCREASE IN NET ASSETS 159,255,295
685,660,213
- -----------------------------------------------------------------
- --------------
NET ASSETS
- -----------------------------------------------------------------
- --------------
Beginning of year 1,295,358,171
609,697,958
- -----------------------------------------------------------------
- --------------
END OF YEAR $1,454,613,466
$1,295,358,171
- -----------------------------------------------------------------
- --------------
The accompanying notes are an integral part of these financial
statements.
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
DECEMBER 8, 1994
(COMMENCEMENT
FOR THE ELEVEN
OF OPERATIONS) TO YEAR ENDED
MONTHS ENDED YEAR
ENDED
SEPTEMBER 30 SEPTEMBER 30
SEPTEMBER 30 OCTOBER
31
1995 1995
1994 1993
- -----------------------------------------------------------------
- -------------------------------------------------
- ----------------
CLASS M
CLASS B
- -----------------------------------------------------------------
- -------------------------------------------------
- ----------------
<S> <C> <C>
<C> <C>
Net investment income $.0434 $.0469
$.0251 $.0195
- -----------------------------------------------------------------
- -------------------------------------------------
- ----------------
Net realized gain on investments -- --
-- --
- -----------------------------------------------------------------
- -------------------------------------------------
- ----------------
TOTAL FROM INVESTMENT OPERATIONS .0434 .0469
.0251
.0195
- -----------------------------------------------------------------
- -------------------------------------------------
- ----------------
TOTAL DISTRIBUTIONS: $(.0434) $(.0469)
$(.0251) $(.0195)
- -----------------------------------------------------------------
- -------------------------------------------------
- ----------------
TOTAL INVESTMENT RETURN AT
NET ASSET VALUE (%) (a) 4.43(b) 4.80
2.54(b) 1.98
- -----------------------------------------------------------------
- -------------------------------------------------
- ----------------
NET ASSETS, END OF PERIOD
(in thousands) $8,440 $256,533
$194,187 $22,777
- -----------------------------------------------------------------
- -------------------------------------------------
- ----------------
Ratio of expenses to average
net assets (%) (c) .67(b) 1.12
1.03(b) 1.20
- -----------------------------------------------------------------
- -------------------------------------------------
- ----------------
Ratio of net investment income
to average net assets (%) 4.29(b) 4.75
2.77(b) 1.98
- -----------------------------------------------------------------
- -------------------------------------------------
- ----------------
<FN>
(a) Total investment return assumes dividend reinvestment and
does not reflect the effect of sales
charges.
(b) Not annualized.
(c) The ratio of expenses to average net assets for the year
ended September 30, 1995 includes
amounts paid through expense offset
arrangements. Prior period ratios exclude these amounts (see
Note 2).
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS (Continued)
(For a share outstanding throughout the period)
APRIL 27, 1992
(COMMENCEMENT
FOR THE ELEVEN
OF OPERATIONS) TO YEAR ENDED
MONTHS ENDED
OCTOBER 31 SEPTEMBER 30
SEPTEMBER 30
YEAR ENDED OCTOBER 31
1992 1995
1994 1993 1992
1991
- -----------------------------------------------------------------
- -------------------------------------------------
- ----------------
CLASS A
- -----------------------------------------------------------------
- -------------------------------------------------
- ----------------
<S> <C> <C>
<C> <C> <C> <C>
Net investment income $.0151 $0.0521
$.0299 $.0246 $0.353
$.0598
- -----------------------------------------------------------------
- -------------------------------------------------
- ----------------
Net realized gain on investments -- --
-- -- --
.0001
- -----------------------------------------------------------------
- -------------------------------------------------
- ----------------
TOTAL FROM INVESTMENT OPERATIONS .0151 0.0521
.0299
.0246 .0353 .0599
- -----------------------------------------------------------------
- -------------------------------------------------
- ----------------
TOTAL DISTRIBUTIONS: $(.0151) $(.0521)
$(.0299) $(.0246)
$(.0353) $(.0599)
- -----------------------------------------------------------------
- -------------------------------------------------
- ----------------
TOTAL INVESTMENT RETURN AT
NET ASSET VALUE (%) (a) 1.52(b) 5.33
3.03(b) 2.49
3.58 6.16
- -----------------------------------------------------------------
- -------------------------------------------------
- ----------------
NET ASSETS, END OF PERIOD
(in thousands) $2,864 $1,189,640
$1,101,171 $586,920 $839,185
$684,987
- -----------------------------------------------------------------
- -------------------------------------------------
- ----------------
Ratio of expenses to average
net assets (%) (c) .70(b) .62
.58(b) .70 .86
.77
- -----------------------------------------------------------------
- -------------------------------------------------
- ----------------
Ratio of net investment income
to average net assets (%) 1.50(b) 5.23
3.03(b) 2.48 3.56
6.04
- -----------------------------------------------------------------
- -------------------------------------------------
- ----------------
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
September 30, 1995
NOTE 1
SIGNIFICANT ACCOUNTING POLICIES
Putnam Money Market Fund (the "fund"), is registered under the
Investment Compa-
ny Act of 1940, as amended as a diversified, open-end management
investment com-
pany. 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 pu-
blic offering of class M shares on 12/8/94. 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 shareholders.
Shareholders are subject to the same contingent deferred sales
charge schedule
as the fund from which they were exchanged. Class B shares pay an
ongoing dis-
tribution fee, and are subject to a contingent deferred sales
charge if the sha-
res are redeemed within six years of purchase (including any
holding period of
the shares in another Putnam fund). Class M shares pay an ongoing
distribution
fee but are not subject to a contingent deferred sales charge.
Expenses of the
fund are borne pro-rata by the holders of each class of shares,
except that each
class bears expenses unique to that class (including the
distribution fees
applicable to class B and class M 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 recei-
ve their pro-rata share of the net assets of the fund, if the
fund were liquida-
ted. In addition, the Trustees declare separate dividends on each
class of sha-
res.
The following is a summary of significant accounting policies
consistently fo-
llowed by the fund in the preparation of its financial
statements. The policies
are in conformity with generally accepted accounting principles.
A) SECURITY VALUATION The valuation of the fund's portfolio
instruments is de-
termined 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 de-
termined by valuing it at cost originally and thereafter
amortizing any discount
or premium from its face value at a constant rate until maturity.
B) SECURITY TRANSACTIONS Security transactions are accounted for
on the trade
date (date the order to buy or sell is executed).
<PAGE>
C) 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 cash of 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.
D) 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. Putnam Management
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.
E) FEDERAL TAXES It is the policy of the fund to distribute all
of its taxable
income within the prescribed time and otherwise comply with the
provisions of
the Internal Revenue Code applicable to regulated investment
companies. It is
also the intention of the fund to distribute an amount sufficient
to avoid im-
position of any excise tax under Section 4982 of the Internal
Revenue Code of
1986. Therefore, no provision has been made for federal and
excise taxes on in-
come and capital gains.
F) INTEREST INCOME AND DISTRIBUTIONS TO SHAREHOLDERS Interest is
recorded
on the
accrual basis. Income dividends (and distributions of capital
gains, if any) are
recorded daily by the fund and are distributed monthly to the
shareholders. The
amount and character of income and gains to be distributed are
determined in
accordance with income tax regulations which may differ from
generally accepted
accounting principles.
NOTE 2
MANAGEMENT FEE, ADMINISTRATIVE SERVICES, AND OTHER TRANSACTIONS
Compensation of Putnam Management, for management and investment
advisory servi-
ces is paid quarterly based on the average net 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
distribution fees, brokerage, interest, taxes, and credits
allowed by Putnam Fi-
duciary 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 Putnam Management on the fund's portfolio
transactions.
The fund reimburses Putnam Management for the compensation and
related expenses
of certain officers of the fund and their staff who provide
administrative ser-
vices to the fund. The aggregate amount of all such
reimbursements is determined
annually by the Trustees.
Trustees of the fund receive an annual Trustee's fee of $2,340
and an additional
fee for each Trustees' meeting attended. Trustees who are not
interested persons
of Putnam Management and who serve on committees of the Trustees
receive addi-
tional fees for attendance at certain committee meetings.
<PAGE>
During the year ended September 30, 1995, the fund adopted a
Trustee Fee Defe-
rral Plan (the "Plan") which allows the Trustees to defer the
receipt of all or
a portion of Trustees fees payable on or after July 1, 1995. The
deferred fees
remain in the fund and are invested in the fund or in other
Putnam funds until
distribution in accordance with the Plan.
Custodial functions for the funds assets are provided by PFTC.
Investor servi-
cing agent functions are provided by Putnam Investor Services, a
division of
PFTC.
For the year ended September 30, 1995, fund expenses were reduced
by $8,545 un-
der expense offset arrangements with PFTC. Investor servicing and
custodian fees
reported in the Statement of operations exclude these credits.
The fund could
have invested a portion of the assets utilized in connection with
the offset
arrangements in an income-producing asset if it had not entered
into such arran-
gements.
The fund has adopted distribution plans (the "Plans") with
respect to its class
B and class M shares pursuant to Rule 12b-1 under the Investment
Company Act of
1940. The purpose of the Plans is to compensate Putnam Mutual
Funds Corp., a
wholly-owned subsidiary of Putnam Investments, Inc., for services
provided and
expenses incurred by it in distributing shares of the fund. The
Plans provide
for payments by the fund to Putnam Mutual Funds Corp. at an
annual rate up to
0.75% and 1.00% of average net assets attributable to class B and
class M sha-
res, respectively. The Trustees have approved payment by the fund
at an annual
rate of 0.50% and 0.15% of the average net assets attributable to
class B and
class M shares, respectively.
For the year ended September 30, 1995, Putnam Mutual Funds Corp.,
acting as un-
derwriter received net commissions of $1,812,421 from the sale of
class B sha-
res. There was $2,224,454 in contingent deferred sales charges
from redemptions
of class B shares. A deferred sales charge of up to 1% is
assessed on certain
redemptions of class A shares acquired through an exchange from
another fund.
For the year ended September 30, 1995, Putnam Mutual Funds Corp.,
acting as un-
derwriter received $103,197 on class A redemptions.
NOTE 3
PURCHASES AND SALES OF SECURITIES
During the year ended September 30, 1995, purchases and sales
(including matu-
rities) of investment securities (all short-term obligations)
aggregated
$37,769,563,771 and $37,593,537,365, respectively. In determining
the net gain
or loss on securities sold, the cost of securities has been
determined on the
identified cost basis.
<PAGE>
NOTE 4
CAPITAL SHARES
At September 30, 1995, there was an unlimited number of shares of
beneficial
interest authorized divided into three classes of shares, 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:
ELEVEN
YEAR
MONTHS
ENDED
ENDED
SEPT. 30
SEPT. 30
CLASS A 1995
1994
- -----------------------------------------------------------------
- --------------
Shares sold 4,779,510,741
3,501,703,378
- -----------------------------------------------------------------
- --------------
Shares issued in connection with
reinvestment of distributions 54,658,336
26,366,112
- -----------------------------------------------------------------
- --------------
4,834,169,077
3,528,069,490
- -----------------------------------------------------------------
- --------------
Shares repurchased (4,745,700,888)
(3,013,818,559)
- -----------------------------------------------------------------
- --------------
NET INCREASE $88,468,189
$514,250,931
- -----------------------------------------------------------------
- --------------
ELEVEN
YEAR
MONTHS
ENDED
ENDED
SEPT. 30
SEPT. 30
CLASS B 1995
1994
- -----------------------------------------------------------------
- --------------
Shares sold 1,012,064,608
652,248,469
- -----------------------------------------------------------------
- --------------
Shares issued in connection with
reinvestment of distributions 9,599,944
2,975,467
- -----------------------------------------------------------------
- --------------
1,021,664,552
655,223,936
- -----------------------------------------------------------------
- --------------
Shares repurchased (959,317,895)
(483,814,654)
- -----------------------------------------------------------------
- --------------
NET INCREASE $62,346,657
$171,409,282
- -----------------------------------------------------------------
- --------------
For the period
December 8, 1994
(commencement of
operations) to
September 30
Class M
1995
- -----------------------------------------------------------------
- --------------
Shares sold
16,449,326
- -----------------------------------------------------------------
- --------------
Shares issued in connection with reinvestment of distributions
109,559
- -----------------------------------------------------------------
- --------------
16,558,885
- -----------------------------------------------------------------
- --------------
Shares repurchased
(8,118,436)
- -----------------------------------------------------------------
- --------------
NET INCREASE
$8,440,449
- -----------------------------------------------------------------
- --------------
<PAGE>
RESULTS OF JULY 13, 1995 SHAREHOLDER MEETING
A special meeting of the shareholders of the fund was held on
July 13, 1995.
At the meeting, each of the nominees for Trustees was elected, as
follows:
VOTES FOR
VOTES WITHHELD
Jameson Adkins Baxter 745,602,377
19,415,176
Hans H. Estin 745,503,771
19,513,782
John A. Hill 745,741,495
19,276,058
Elizabeth T. Kennan 745,524,628
19,492,925
Lawrence J. Lasser 744,885,952
20,131,601
Robert E. Patterson 745,340,830
19,676,723
Donald S. Perkins 745,257,267
19,760,286
William F. Pounds 745,661,514
19,356,039
George Putnam 745,342,018
19,675,535
George Putnam, III 744,721,668
20,295,885
Eli Shapiro 744,622,482
20,395,071
A.J.C. Smith 744,777,019
20,240,534
W. Nicholas Thorndike 745,332,085
19,685,468
A proposal to ratify the selection of Price Waterhouse LLP as
auditors for the
fund was approved as follows: 724,625,524 votes for, and
11,416,782 votes
against, with 28,975,247 abstentions and broker non-votes.
A proposal to amend the fund's fundamental investment restriction
on investments
in restricted securities was approved as follows:
594,233,264 votes for, and 120,252,071 votes against, with
50,532,218 absten-
tions and broker non-votes. A proposal to amend the fund's
fundamental invest-
ment restriction regarding investment in a class of single
issuer's securities
was approved as follows:604,455,381 votes for, and 108,931,028
votes against,
with 51,631,144 abstentions and broker non-votes.
All tabulations have been rounded to the nearest whole number.
FEDERAL TAX INFORMATION (UNAUDITED)
The form 1099 you receive in January 1996 will show the tax
status of all dis-
tributions paid to your account in calendar 1995.
<PAGE>
FUND INFORMATION
INVESTMENT MANAGER
Putnam Investment
Management, Inc.
One Post Office Square
Boston, MA 02109
MARKETING SERVICES
Putnam Mutual Funds Corp.
One Post Office Square
Boston, MA 02109
CUSTODIAN
Putnam Fiduciary Trust Company
LEGAL COUNSEL
Ropes & Gray
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
TRUSTEES
George Putnam, Chairman William F. Pounds, Vice
Chairman
Jameson Adkins Baxter Hans H. Estin
John A. Hill Elizabeth T. Kennan
Lawrence J. Lasser Robert E. Patterson
Donald S. Perkins George Putnam, III
Eli Shapiro A.J.C. Smith
W. Nicholas Thorndike
OFFICERS
George Putnam Charles E. Porter
President Executive Vice
President
Patricia C. Flaherty Lawrence J. Lasser
Senior Vice President Vice President
Gordon H. Silver Gary N. Coburn
Vice President Vice President
William F. McGue Lindsey C. Strong
Vice President Vice President and Fund
Manager
William N. Shiebler John R. Verani
Vice President Vice President
Paul M. O'Neil John D. Hughes
Vice President 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 cu-
rrent prospectus, which gives details of sales charges,
investment objectives
and operating policies of the fund, and the most recent copy of
Putnam's Quar-
terly 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 EN-
DORSED 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 THE PRINCIPAL
AMOUNT
INVESTED.
<PAGE>
<PAGE>
- ---------------
PUTNAM INVESTMENTS Bulk Rate
U.S.
Postage
THE PUTNAM FUNDS PAID
One Post Office Square Putnam
Boston, Massachusetts 02109
Investments
- ---------------
20983-010/879/534 11/95
<PAGE>
<PAGE>
APPENDIX TO FORM N-30D FILINGS TO DESCRIBE DIFFERENCES BETWEEN
PRINTED AND
EDGAR-FILED TEXTS:
(1) Boldface typeface is displayed with capital letters, italic
typeface is
displayed in normal type.
(2) Because the printed page breaks are not reflected, certain
tabular and
columnar headings and symbols are displayed differently in
this filing.
(3) Bullet points and similar graphic signals are omitted.
(4) Page numbering has been omitted.
(5) The trademark symbol has been replaced by (TM).
(6) The copyright symbol has been replaced by (C).
(7) The registered mark symbol has been replaced by (R).
(8) The dagger symbol has been replaced by +
(9) The double dagger symbol has been replaced by ++
(10) The triple dagger symbol has been replaced by +++
(11) The section symbol has been replaced by ^
(12) The double section symbol has been replaced by ^^
(13) The trile section symbol has been replaced by ^^^
