Putnam
Money
Market
Fund
SEMIANNUAL REPORT
March 31, 1998
[LOGO: BOSTON * LONDON * TOKYO]
Fund highlights
* "The fund's neutral duration structure and conservative, quality-
driven strategy again produced positive results during the past
six months, since we were able to take advantage of income opportunities
while remaining flexible for any changes that
might lie ahead."
-- Joanne Driscoll, manager
Putnam Money Market Fund
CONTENTS
4 Report from Putnam Management
8 Fund performance summary
12 Portfolio holdings
16 Financial statements
From the Chairman
[GRAPHIC OMITTED: PHOTO OF GEORGE PUTNAM]
[Copyright] Karsh, Ottawa
Dear Shareholder:
The financial troubles in Asia continued to dominate the capital markets
during the first half of Putnam Money Market Fund's fiscal year, pushing aside
worries that the continued strength in the U.S. economy would have
inflationary implications. The rush of funds to the relative safety of the
U.S. bond market did push yields on most bonds lower -- and their prices
higher.
The Federal Reserve Board kept close watch on these events as you might
expect. But in the end, the Fed remained on the sidelines, apparently content
that the economic engine was still sufficiently under control.
In this environment, Fund Manager Joanne Driscoll continued to focus on
maintaining capital preservation, superior credit quality, and liquidity,
regardless of market conditions. In the following report, Joanne discusses her
strategy during the six months ended March 31, 1998, and looks at prospects
for the fiscal year's second half.
Respectfully yours,
/S/GEORGE PUTNAM
George Putnam
Chairman of the Trustees
May 20, 1998
Report from the Fund Manager
Joanne M. Driscoll
With the U.S. economy still marching forward and inflation staying quite low,
the recent semiannual period brought few changes for money market investors.
Once again, Putnam Money Market Fund delivered a competitive total return
while maintaining a stable $1.00 share price as its ongoing focus on superior
quality, preservation of capital, and current income continued to prove
successful.
* ECONOMIC GROWTH CONTINUES; INFLATION REMAINS AT BAY
Despite concerns about fallout from the Asian financial crisis, the U.S.
economy maintained a rather heady pace of expansion during the six months
ended March 31, 1998. Indeed, incoming U.S. economic data showed more positive
impact than negative consequences from the Asian tsunami as weaker demand in
Asia pushed down worldwide commodities prices and long-term interest rates.
Isolated Asian-related pressures notwithstanding, most sectors and regions of
the U.S. economy continue to evidence strong growth. During the fourth quarter
of 1997, real gross domestic product rose at a robust 3.7% annual rate and
analysts anticipate similar vibrancy for the first quarter of 1998. Consumers
appear to be in excellent shape overall with strong employment and income
gains helping to boost consumer confidence and spending.
While the economy continues to expand at a rate that would, in the past, have
been considered a harbinger of inflationary pressures, current data show
virtually no signs of higher inflation. The inflation rate for 1997 was just
1.4%, and so far the numbers for 1998 seem similarly low. Given such a benign
environment, the Fed kept its monetary policy on hold throughout the period.
In fact, the Fed has not raised the federal funds rate, the benchmark rate on
overnight loans between banks, since March 1997. At that time, policymakers
feared that strong economic demand would result in increased inflation.
* MONEY MARKET CONTINUES TO ATTRACT CASH
Money market investments remained attractive throughout the past six months,
and the market continued to experience record inflows of investor cash.
Despite the period's spate of strong U.S. economic data, many investors
focused solely on the possibility of negative fallout from the Asian financial
crisis, preferring to concentrate on more conservative, high-quality
investments like money market funds. More and more U.S. investors were finding
the liquidity, quality, and yields of money market funds attractive. Many of
the world's investors continued to focus on the U.S. markets too, and money
market funds such as yours reaped the benefits of this flight to quality in
the form of solid growth in assets under management.
With Fed monetary policy on hold and the direction of interest rates
uncertain, we have continued to keep the fund in a flexible position. During
the recent period, this strategy meant keeping portfolio duration relatively
neutral -- rather than short or long -- in order to take advantage of
incrementally higher yields as they became available. One such opportunity
arose at the end of 1997, when year-end corporate funding pressures forced up
yields on certain high-quality corporate and bank money market issues. We took
advantage of this situation to capture some extra yield by purchasing some
securities with 30- and 45-day maturities, along with selected longer-maturity
issues.
In fact, yields on most corporate and bank money market securities were more
favorable than yields on Treasury securities throughout the period. As the
economy's strength continued to reduce the government's borrowing needs, the
supply of new Treasury securities kept falling. At the same time,
Asian-inspired concerns kept investor demand for these securities high,
pushing yields on Treasury securities lower. With its flexible duration
structure, the fund was able to pursue various value and income opportunities
among corporate and bank-issued securities throughout the period, laddering
portfolio holdings across the maturity spectrum to preserve liquidity and
remain ready for any changes that might occur.
* STAYING FOCUSED ON SUPERIOR QUALITY
Throughout the period, we again endeavored to structure the portfolio with
holdings that would mature at dips rather than peaks in market demand. In that
way, we can expect less competition when seeking to reinvest the assets from
maturing securities and may be able to secure higher yields in the process.
For example, when we took advantage of the year-end pop-up in yields on
corporate and bank issues, we were careful to limit our purchase of January
maturities to avoid a time period during which the supply of securities
typically drops, making it harder to produce attractive reinvestments for the
fund. Instead, we focused on maturities in February and March, months in which
money market yields have historically tended to be higher.
As always, maintaining superior quality and preserving capital remain
paramount elements of your fund's investment strategy. To this end, we
continue to invest in a wide spectrum of top-quality traditional money
market securities. These may include certificates of deposit, bank notes,
government agency discount notes, and asset-backed commercial paper, debt
obligations which are backed by a company's trade and term receivables,
credit cards, auto loans, or other revenue streams and then securitized by
credit enhancement features or bank letters of credit.
Our stringent quality standards remained in force throughout the period. In
selecting investments for the portfolio, we always seek holdings that are
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. In fact, among our newly added corporate and bank holdings, we
stayed with those of tier one quality, considered the highest quality level by
the nationally recognized rating services. At period's end, all portfolio
holdings were rated. If a security is unrated, however, it must be judged by
Putnam Management to be of a quality equivalent to that of securities with
ratings in the top two categories.
PERFORMANCE COMPARISONS (3/31/98)
Current
return*
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Passbook savings account 2.00%
- ------------------------------------------------------------------------------
Taxable money market fund (7-day yield) 5.05
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3-month certificate of deposit 4.12
- ------------------------------------------------------------------------------
Putnam Money Market Fund (7-day yield)
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Class A 5.19
- ------------------------------------------------------------------------------
Class B 4.69
- ------------------------------------------------------------------------------
Class M 5.04
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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 on bank CDs is generally insured
up to certain limits by state and federal agencies. Unlike stocks, which incur
more risk, CDs offer a fixed rate of return. Unlike money market funds, bank
CDs may be subject to substantial penalties for early withdrawals. After-tax
return assumes a 39.5% maximum federal income tax rate.
*Sources: Bank of Boston (passbook savings), Bank Rate Monitor (3-month CDs),
IBC/Donaghue's Money Fund Report (taxable money market fund compound 7-day
yield).
* OUTLOOK: STAYING FLEXIBLE FOR WHAT LIES AHEAD
For the time being, it appears that economic strength and low inflation can
indeed go hand in hand. With the Fed waiting to see how and if the Asian
financial crisis will affect the U.S. economic engine, changes in short-term
interest rates appear to be on hold for now. Should the economy begin to
overheat, however, the Fed may be forced to raise rates. Your fund's neutral
duration structure and conservative, quality-focused strategy position it well
for this environment by providing the flexibility to capture any higher yields
that become available.
The views expressed here are exclusively those of Putnam Management. They are
not meant as investment advice. Although the described holdings were viewed
favorably as of 3/31/98, there is no guarantee the fund will continue to hold
these securities in the future. An investment in this fund is neither insured
nor guaranteed by the U.S. government, and there is no assurance that a $1.00
share price will be maintained.
Performance summary
This section provides information about your fund's performance, which
should always be considered in light of its investment strategy. Putnam
Money Market Fund is designed for investors seeking current income
consistent with capital preservation, stable principal, and liquidity.
TOTAL RETURN FOR PERIODS ENDED 3/31/98
Class A Class B Class M
(inception date) (10/1/76) (4/27/92) (12/8/94)
NAV NAV CDSC NAV
- ------------------------------------------------------------------------------
6 months 2.58% 2.33% -2.67% 2.50%
- ------------------------------------------------------------------------------
1 year 5.25 4.73 -0.27 5.10
- ------------------------------------------------------------------------------
5 years 24.94 21.81 19.81 24.00
Annual average 4.55 4.02 3.68 4.40
- ------------------------------------------------------------------------------
10 years 69.51 61.49 61.49 66.98
Annual average 5.42 4.91 4.91 5.26
- ------------------------------------------------------------------------------
Annual average
(Life of fund) 7.45 6.92 6.92 7.29
- ------------------------------------------------------------------------------
COMPARATIVE INDEX RETURNS FOR PERIODS ENDED 3/31/98
Lipper
Money Consumer
Market Price
Average Index
- ------------------------------------------------------------------------------
6 months 2.45% 0.62%
- ------------------------------------------------------------------------------
1 year 4.96 1.38
- ------------------------------------------------------------------------------
5 years 24.20 12.95
Annual average 4.43 2.47
- ------------------------------------------------------------------------------
10 years 68.44 39.23
Annual average 5.35 3.37
- ------------------------------------------------------------------------------
Annual average
(Life of fund) 7.49 4.93
- ------------------------------------------------------------------------------
Fund performance data do not take into account any adjustment for taxes
payable on reinvested distributions. Performance data represent past
results and are not indicative 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. The fund's
holdings do not match those in the Lipper average.
Returns shown for class B and class M shares for periods prior to their
inception are derived from the historical performance of class A shares,
adjusted to reflect the higher operating expenses applicable to such
shares. One-, five- (when available), and life of fund returns for class B
shares reflect the applicable contingent deferred sales charge (CDSC),
which is 5% in the first year, declines to 1% in the sixth year, and is
eliminated thereafter. All returns assume reinvestment of distributions at
NAV and represent past performance; they do not guarantee future results.
PRICE AND DISTRIBUTION INFORMATION
6 months ended 3/31/98
Class A Class B Class M
- ------------------------------------------------------------------------------
Distributions (number) 6 6 6
- ------------------------------------------------------------------------------
Income $0.02554 $0.023051 $0.024786
- ------------------------------------------------------------------------------
Total $0.02554 $0.023051 $0.024786
- ------------------------------------------------------------------------------
Current return
(end of period)
- ------------------------------------------------------------------------------
Current 7-day yield* 5.19% 4.69% 5.04%
- ------------------------------------------------------------------------------
Current 30-day yield* 5.15 4.65 5.00
- ------------------------------------------------------------------------------
*The 7-day and 30-day yields are the two most common gauges for measuring
money market mutual fund performance.
TERMS AND DEFINITIONS
Total return shows how the value of the fund's shares changed over time,
assuming you held the shares through the entire period and reinvested all
distributions in the fund.
Net asset value (NAV) is the value of all your fund's assets, minus any
liabilities, divided by the number of outstanding shares.
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 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 exchange 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.
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. It is not possible to invest directly in an index.
Consumer Price Index (CPI) is a commonly used measure of inflation; it
does not represent an investment return.
PUTNAM GROWTH FUNDS
Asia Pacific Growth Fund
Capital Appreciation Fund
Diversified Equity Trust
Europe Growth Fund
Global Growth Fund
Global Natural Resources Fund
Growth Opportunities Fund
Health Sciences Trust
International Growth Fund
International New Opportunities Fund
Investors Fund
New Opportunities Fund [DBL. DAGGER]
OTC & Emerging 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
Global Growth and Income Fund
The Putnam Fund for Growth and Income
Growth and Income Fund II
International Growth and Income Fund
New Value Fund
Utilities Growth and Income Fund
PUTNAM INCOME FUNDS
American Government Income Fund
Diversified Income Trust
Strategic Income Fund *
High Quality Bond Fund +
Global Governmental Income Trust
High Yield Advantage Fund [DBL. DAGGER]
High Yield Total Return Fund
High Yield Trust [DBL. DAGGER]
High Yield Trust II
Income Fund
Money Market Fund **
Intermediate U.S. Government
Income Fund
Preferred Income Fund
U.S. Government Income Trust
PUTNAM TAX-FREE
INCOME FUNDS
Municipal Income Fund
Tax Exempt Income Fund
Tax Exempt Money Market Fund**
Tax-Free High Yield Fund
Tax-Free Insured Fund
State tax-free income funds [SECTION MARK]
Arizona, California, Florida, Massachusetts, Michigan, Minnesota, New
Jersey, New York, Ohio and Pennsylvania
State tax-free money market funds [SECTION MARK]
California, New York
LIFESTAGESM FUNDS
Putnam Asset Allocation Funds--three investment portfolios that spread
your money across a variety of stocks, bonds, and money market
investments.
The three portfolios:
Asset Allocation: Balanced Portfolio
Asset Allocation: Conservative Portfolio
Asset Allocation: Growth Portfolio
*Formerly Putnam Diversified Income Trust II
+Formerly Putnam Federal Income Trust
[DBL. DAGGER] Closed to new investors. Some exceptions may apply.
Contact Putnam for details.
[SECTION MARK] Not available in all states.
**An investment in a money market fund is neither insured nor
guaranteed by the U.S. government. These funds are managed to maintain a
price of $1.00 per share, although there is no assurance that this price
will be maintained in the future.
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. Please read it carefully before you
invest or send money.
<TABLE>
<CAPTION>
Portfolio of investments owned
March 31, 1998 (Unaudited)
COMMERCIAL PAPER (79.2%) * MATURITY
PRINCIPAL AMOUNT DATE VALUE
DOMESTIC (52.5%) *
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$20,000,000 Asset Securitization Co-op Corp. 5.54s 4/6/98 $19,981,533
25,000,000 Asset Securitization Co-op Corp. 5.52s 6/4/98 24,750,833
100,000,000 Citicorp, interest in $115,000,000 joint discount
commercial paper, effective yield 6.1% 4/1/98 99,983,055
32,000,000 Corporate Asset Funding Co. Inc. 5.68s 4/9/98 31,954,560
17,000,000 Corporate Asset Funding Co. Inc. 5.45s 4/23/98 16,940,807
28,000,000 Corporate Receivables Corp. 5.53s 4/28/98 27,879,569
20,000,000 Corporate Receivables Corp. 5.52s 5/27/98 19,825,200
25,000,000 Corporate Receivables Corp. 5.52s 5/19/98 24,812,167
25,000,000 CXC Inc. 5.52s 5/21/98 24,804,500
25,000,000 CXC Inc. 5.49s 4/20/98 24,923,750
25,000,000 CXC Inc. 5.48s 4/27/98 24,897,250
30,000,000 Delaware Funding Corp. 5.57s 4/9/98 29,958,225
31,000,000 Delaware Funding Corp. 5.49s 4/17/98 30,919,633
16,655,000 Falcon Asset Securitization Corp. 5.55s 4/16/98 16,613,918
20,000,000 Falcon Asset Securitization Corp. 5 1/2s 6/22/98 19,746,389
20,000,000 Falcon Asset Securitization Corp. 5 1/2s 6/5/98 19,798,333
30,000,000 Falcon Asset Securitization Corp. 5 1/2s 5/26/98 29,743,333
20,000,000 Ford Motor Credit Co. of Puerto Rico, Inc. 5.47s 4/23/98 19,930,106
15,000,000 Ford Motor Credit Co. of Puerto Rico, Inc. 5.46s 5/15/98 14,897,625
30,000,000 Ford Motor Credit Corp. 5 1/2s 4/3/98 29,986,250
25,000,000 Formosa Plastics Corp. (Bank of America
(LOC)) 5.55s 4/21/98 24,919,063
30,000,000 General Electric Capital Corp. 5.66s 4/15/98 29,929,250
35,000,000 General Electric Capital Corp. 5.54s 4/16/98 34,913,822
35,000,000 General Electric Capital Corp. 5.47s 5/14/98 34,766,006
30,000,000 General Motors Acceptance Corp. 5.53s 5/1/98 29,857,142
20,000,000 General Motors Acceptance Corp. 5.51s 6/23/98 19,742,867
42,000,000 General Motors Acceptance Corp., interest
in $50,000,000 joint discount commercial
paper, effective yield 6.12% 4/1/98 41,992,860
21,000,000 HJ Heinz Company 5.51s 5/4/98 20,890,718
25,000,000 Household Finance Corp. 5.54s 5/13/98 24,834,570
41,000,000 Household Finance Corp., interest in
$50,000,000 joint discount commercial
paper, effective yield 6.1% 4/1/98 40,993,052
30,000,000 International Business Machines Co. 5.53s 4/2/98 29,990,783
26,000,000 Morgan (J.P.) & Co., Inc. 5 1/2s 6/15/98 25,698,111
20,000,000 Morgan (J.P.) & Co., Inc. 5.48s 4/15/98 19,954,333
25,000,000 Merrill Lynch & Co., Inc. 5.7s 4/16/98 24,936,667
25,000,000 Merrill Lynch & Co., Inc. 5.57s 4/14/98 24,945,847
25,000,000 Merrill Lynch & Co., Inc. 5.49s 6/30/98 24,653,063
25,000,000 Merrill Lynch & Co., Inc. 5.46s 4/30/98 24,886,250
20,000,000 Metlife Funding Inc. 5.52s 4/3/98 19,990,800
20,000,000 National Rural Utilities Cooperative
Finance Corp. 5.48s 6/16/98 19,765,578
20,000,000 NationsBank Corp. 5.53s 4/8/98 19,975,422
20,000,000 NationsBank Corp. 5.38s 8/27/98 19,554,656
40,000,000 New Center Asset Trust, interest in $50,000,000
joint discount commercial paper, effective
yield 6.1% 4/1/98 39,993,222
27,000,000 Orix America Inc. (Bank of America (LOC)) 5.37s 10/9/98 26,226,720
30,000,000 Orix America Inc. (Bank of America (LOC)) 5.33s 10/9/98 29,147,200
21,800,000 Preferred Receivable Fundings Corp. 5.55s 5/14/98 21,652,123
23,200,000 Preferred Receivable Fundings Corp. 5 1/2s 6/22/98 22,905,811
34,400,000 Sheffield Receivables Corp. 5.54s 5/8/98 34,198,836
25,000,000 Sheffield Receivables Corp. 5.54s 4/2/98 24,992,306
25,000,000 Sheffield Receivables Corp. 5 1/2s 6/11/98 24,725,000
15,000,000 U.S. Bancorp 5.42s 4/22/98 14,950,317
--------------
1,348,329,431
FOREIGN (26.7%) *
- ------------------------------------------------------------------------------------------------------------
$20,000,000 Accor S.A. (Banque National de Paris (LOC))
5.57s (France) 4/6/98 $19,981,433
25,000,000 Accor S.A. (Banque National de Paris (LOC))
5.55s (France) 4/7/98 24,973,021
20,000,000 Abbey National North America Corp. 5.48s
(United Kingdom) 6/10/98 19,783,844
20,000,000 Abbey National North America Corp. 5.44s
(United Kingdom) 5/18/98 19,854,933
20,000,000 Abbey National North America Corp. 5.42s
(United Kingdom) 8/24/98 19,560,378
25,000,000 ABN AMRO North American Finance 5.435s
(Netherlands) 9/25/98 24,328,174
20,000,000 Banco Nacional de Mexico (Barclays Bank
(LOC)) 5.45s (United Kingdom) 5/6/98 19,891,000
25,000,000 Banco Nacional de Mexico (Barclays Bank
(LOC)) 5.44s (United Kingdom) 4/22/98 24,916,889
15,000,000 Banco Nacional de Mexico (Barclays Bank
(LOC)) 5.45s (United Kingdom) 4/13/98 14,970,479
25,000,000 Bank of Montreal 5.47s (Canada) 4/13/98 24,950,618
30,000,000 Canadian Imperial Bank Of Commerce
5.495s (Canada) 4/7/98 29,967,946
25,000,000 Cemex S.A. (Credit Suisse First Boston
(LOC)) 5.44s (Switzerland) 6/18/98 24,701,556
15,000,000 China Merchants Inc. (Credit Suisse First
Boston (LOC)) 5.44s (Switzerland) 5/29/98 14,866,267
24,000,000 Commonwealth Bank Of Australia 5.43s
(Australia) 9/15/98 23,391,840
20,000,000 Contifinancial Corp. (Dresdner Bank AG
(LOC)) 5.65s (Germany) 4/22/98 19,930,944
20,000,000 Contifinancial Corp. (Dresdner Bank AG
(LOC)) 5.55s (Germany) 4/30/98 19,907,500
17,100,000 Corporacion Andina De Fomento (Barclays
(LOC)) 5.55s (United Kingdom) 5/4/98 17,010,368
15,000,000 Corporacion Andina De Fomento (Barclays
(LOC)) 5.46s (United Kingdom) 4/24/98 14,945,400
60,000,000 Credit Suisse First Boston 5.43s (Switzerland) 4/29/98 59,737,550
20,000,000 Deutsche Bank 5.43s (Germany) 4/8/98 19,975,867
25,000,000 Garanti Funding Corp. (Bayerische Vereinsbank
(LOC)) BVB 5.46s (Germany) 4/1/98 24,996,208
15,000,000 Glencore Finance Services (Union bank
(LOC)) 5 1/2s (Switzerland) 5/5/98 14,919,792
25,000,000 Glencore Finance Services (Union Bank
(LOC)) 5.45s (Switzerland) 5/5/98 24,867,535
25,000,000 National Australia Bank 5.85s (Australia) 10/5/98 25,023,890
18,000,000 Rabobank USA Financial Corp. 5.57s
(Netherlands) 4/14/98 17,961,010
20,000,000 Royal Bank Of Canada 5.94s (Canada) 6/25/98 20,001,509
25,000,000 Svenska Handelsbanken 6.08s (Sweden) 5/28/98 25,000,816
25,000,000 Svenska Handelsbanken 5.52s (Sweden) 4/15/98 25,000,206
25,000,000 Svenska Handelsbanken 5.44s (Sweden) 8/24/98 24,448,444
25,000,000 Toronto Dominion Holdings 5.48s (Canada) 6/10/98 24,729,806
--------------
$684,595,223
--------------
Total Commercial Paper (cost $2,032,924,654) $2,032,924,654
CERTIFICATES OF DEPOSIT (15.1%) * MATURITY
PRINCIPAL AMOUNT DATE VALUE
- ------------------------------------------------------------------------------------------------------------
$23,000,000 Abbey National PLC 6.05s (United Kingdom) 6/8/98 $22,998,874
30,000,000 ABN AMRO Bank NV 6.15s (Netherlands) 5/11/98 29,998,349
25,000,000 ABN AMRO Bank NV 5.6s (Netherlands) 9/3/98 24,999,892
30,000,000 Banque Nationale De Paris 5.72s (France) 7/2/98 30,007,318
20,000,000 Banque Nationale De Paris 5.61s (France) 9/3/98 19,999,914
20,000,000 Canadian Imperial Bank Of Commerce
5.66s (Canada) 2/26/99 19,990,415
30,000,000 Deutsche Bank 6.21s (Germany) 4/20/98 30,002,435
20,000,000 Deutsche Bank 5.65s (Germany) 7/6/98 20,004,923
25,000,000 Fleet National Bank 5.53s 5/20/98 25,000,000
25,000,000 Landesbank Hessen Thuringen 6.03s (Germany) 6/12/98 25,005,370
14,000,000 Societe Generale 6.35s (France) 4/15/98 14,002,711
25,000,000 Societe Generale 6.17s (France) 5/8/98 25,004,446
25,000,000 Societe Generale 5.945s (France) 8/28/98 24,994,323
16,000,000 Societe Generale 5.70s (France) 3/3/99 15,992,335
20,000,000 Societe Generale 5.695s (France) 3/23/99 19,990,419
40,000,000 Westpac Banking Corp. 5.97s (Australia) 8/13/98 39,995,679
--------------
Total Certificates of Deposit (cost $387,987,403) $387,987,403
BANK NOTES (5.1%) * MATURITY
PRINCIPAL AMOUNT DATE VALUE
- ------------------------------------------------------------------------------------------------------------
$25,000,000 First National Bank Of Boston 5.75s 5/11/98 $25,000,000
30,000,000 First National Bank Of Boston 5.71s 4/1/98 30,000,000
25,000,000 Morgan Guaranty Trust Co. 5.965s 6/22/98 24,993,263
25,000,000 Northern Trust Corporation 5.95s 6/24/98 24,988,000
25,000,000 Westpac Banking Corp. 6.0s (Australia) 12/11/98 25,000,000
--------------
Total Bank Notes (cost $129,981,263) $129,981,263
REPURCHASE AGREEMENTS (1.0%) * (cost $24,610,067)
PRINCIPAL AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------
24,606,000 Interest in $492,084,000 joint repurchase agreement
dated March 31, 1998 with UBS Securities due
April 1, 1998 with respect to various U.S. Treasury
obligations -- maturity value of $24,610,067 for
an effective yield of 5.95% $24,610,067
- ------------------------------------------------------------------------------------------------------------
Total Investments (cost $2,575,503,387) *** $2,575,503,387
- ------------------------------------------------------------------------------------------------------------
* Percentages indicated are based on net assets of $2,568,667,089
*** The aggregate identified cost on a tax basis is the same.
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of assets and liabilities
March 31, 1998 (Unaudited)
<S> <C>
Assets
- ---------------------------------------------------------------------------------------------------
Investments in securities, at amortized cost (Note 1) $2,575,503,387
- ---------------------------------------------------------------------------------------------------
Cash 699
- ---------------------------------------------------------------------------------------------------
Interest and other receivables 18,758,592
- ---------------------------------------------------------------------------------------------------
Receivable for shares of the fund sold 19,476,654
- ---------------------------------------------------------------------------------------------------
Total assets 2,613,739,332
Liabilities
- ---------------------------------------------------------------------------------------------------
Distributions payable to shareholders 483,848
- ---------------------------------------------------------------------------------------------------
Payable for shares of the fund repurchased 41,865,361
- ---------------------------------------------------------------------------------------------------
Payable for compensation of Manager (Note 2) 2,022,876
- ---------------------------------------------------------------------------------------------------
Payable for investor servicing and custodian fees (Note 2) 341,418
- ---------------------------------------------------------------------------------------------------
Payable for compensation of Trustees (Note 2) 23,170
- ---------------------------------------------------------------------------------------------------
Payable for administrative services (Note 2) 4,999
- ---------------------------------------------------------------------------------------------------
Payable for distribution fees (Note 2) 187,980
- ---------------------------------------------------------------------------------------------------
Other accrued expenses 142,591
- ---------------------------------------------------------------------------------------------------
Total liabilities 45,072,243
- ---------------------------------------------------------------------------------------------------
Net assets $2,568,667,089
Represented by
- ---------------------------------------------------------------------------------------------------
Paid-in capital (Note 4) $2,568,667,089
- ---------------------------------------------------------------------------------------------------
Net asset value, offering and redemption price per class A share
($2,120,075,334 divided by 2,120,075,334 shares) * $1.00
- ---------------------------------------------------------------------------------------------------
Net asset value and offering price per class B share
($389,416,654 divided by 389,416,654 shares)** $1.00
- ---------------------------------------------------------------------------------------------------
Net asset value, offering and redemption price per class M share
($59,175,101 divided by 59,175,101 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. For investors who acquired class B shares through an
exchange, the applicable contingent deferred sales charge will depend on the fund which you
exchanged.
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of operations
Six months ended March 31, 1998 (Unaudited)
<S> <C>
Interest income $73,113,244
- --------------------------------------------------------------------------------------------------
Expenses:
- --------------------------------------------------------------------------------------------------
Compensation of Manager (Note 2) 4,107,769
- --------------------------------------------------------------------------------------------------
Investor servicing and custodian fees (Note 2) 3,020,827
- --------------------------------------------------------------------------------------------------
Compensation of Trustees (Note 2) 22,597
- --------------------------------------------------------------------------------------------------
Administrative services (Note 2) 6,836
- --------------------------------------------------------------------------------------------------
Distribution fees -- Class B (Note 2) 1,053,096
- --------------------------------------------------------------------------------------------------
Distribution fees -- Class M (Note 2) 45,149
- --------------------------------------------------------------------------------------------------
Reports to shareholders 39,936
- --------------------------------------------------------------------------------------------------
Registration fees 162,721
- --------------------------------------------------------------------------------------------------
Auditing 29,895
- --------------------------------------------------------------------------------------------------
Legal 12,384
- --------------------------------------------------------------------------------------------------
Postage 82,331
- --------------------------------------------------------------------------------------------------
Other 387,066
- --------------------------------------------------------------------------------------------------
Total expenses 8,970,607
- --------------------------------------------------------------------------------------------------
Expense reduction (Note 2) (861,595)
- --------------------------------------------------------------------------------------------------
Net expenses 8,109,012
- --------------------------------------------------------------------------------------------------
Net investment income 65,004,232
- --------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $65,004,232
- --------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of changes in net assets
Six months ended Year ended
March 31 September 30
1998* 1997
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (decrease) in net assets
- ----------------------------------------------------------------------------------------------------------------------
Operations:
- ----------------------------------------------------------------------------------------------------------------------
Net investment income $65,004,232 $130,577,733
- ----------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 65,004,232 130,577,733
- ----------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
- ----------------------------------------------------------------------------------------------------------------------
From net investment income
Class A (53,684,343) (106,719,970)
- ----------------------------------------------------------------------------------------------------------------------
Class B (9,805,030) (21,583,487)
- ----------------------------------------------------------------------------------------------------------------------
Class M (1,514,859) (2,274,276)
- ----------------------------------------------------------------------------------------------------------------------
Increase (decrease) from capital share transactions (Note 4) (34,943,002) 476,931,642
- ----------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (34,943,002) 476,931,642
Net assets
- ----------------------------------------------------------------------------------------------------------------------
Beginning of period 2,603,610,091 2,126,678,449
- ----------------------------------------------------------------------------------------------------------------------
End of period $2,568,667,089 $2,603,610,091
- ----------------------------------------------------------------------------------------------------------------------
* Unaudited
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Financial highlights
(For a share outstanding throughout the period)
CLASS A
- ------------------------------------------------------------------------------------------------------------------------------
Six months
ended For the eleven
Per-share March 31 months ended Year ended
operating performance (Unaudited) Year ended September 30 September 30 October 31
- ------------------------------------------------------------------------------------------------------------------------------
1998 1997 1996 1995 1994 1993
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net investment income $.0255 $.0505 $.0507 $.0521 $.0299 $.0246
- ------------------------------------------------------------------------------------------------------------------------------
Total from
investment operations .0255 .0505 .0507 .0521 .0299 .0246
- ------------------------------------------------------------------------------------------------------------------------------
Total distributions $(.0255) $(.0505) $(.0507) $(.0521) $(.0299) $(.0246)
- ------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
- ------------------------------------------------------------------------------------------------------------------------------
Total investment return
at net asset value (%)(a) 2.58 * 5.17 5.19 5.33 3.03 * 2.49
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $2,120,075 $2,134,223 $1,659,288 $1,189,640 $1,101,171 $586,920
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(b) .31 * .57 .57 .62 .58 * .70
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (%) 2.59 * 5.06 5.00 5.23 3.03 * 2.48
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Financial highlights (Continued)
(For a share outstanding throughout the period)
CLASS B
- ------------------------------------------------------------------------------------------------------------------------------
Six months
ended For the eleven
Per-share March 31 months ended Year ended
operating performance (Unaudited) Year ended September 30 September 30 October 31
- ------------------------------------------------------------------------------------------------------------------------------
1998 1997 1996 1995 1994 1993
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net investment income $.0231 $.0455 $.0457 $.0469 $.0251 $.0195
- ------------------------------------------------------------------------------------------------------------------------------
Total from
investment operations .0231 .0455 .0457 .0469 .0251 .0195
- ------------------------------------------------------------------------------------------------------------------------------
Total distributions $(.0231) $(.0455) $(.0457) $(.0469) $(.0251) $(.0195)
- ------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
- ------------------------------------------------------------------------------------------------------------------------------
Total investment return
at net asset value (%)(a) 2.33 * 4.65 4.67 4.80 2.54 * 1.98
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $389,417 $410,885 $438,316 $256,533 $194,187 $22,777
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(b) .56 * 1.07 1.07 1.12 1.03 * 1.20
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (%) 2.32 * 4.57 4.51 4.75 2.77 * 1.98
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Financial highlights (Continued)
(For a share outstanding throughout the period)
CLASS M
- -------------------------------------------------------------------------------------------------------------------------------
Six months
ended For the period
Per-share March 31 Dec. 8, 1994+
operating performance (Unaudited) Year ended September 30 to Sep. 30
- -------------------------------------------------------------------------------------------------------------------------------
1998 1997 1996 1995
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net investment income $.0248 $.0490 $.0490 $.0434
- -------------------------------------------------------------------------------------------------------------------------------
Total from
investment operations .0248 .0490 .0490 .0434
- -------------------------------------------------------------------------------------------------------------------------------
Total distributions $(.0248) $(.0490) $(.0490) $(.0434)
- -------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
- -------------------------------------------------------------------------------------------------------------------------------
Total investment return
at net asset value (%)(a) 2.50 * 5.01 5.02 4.43 *
- -------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $59,175 $58,502 $29,075 $8,440
- -------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(b) .38 * .72 .72 .67 *
- -------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (%) 2.51 * 4.92 4.82 4.29 *
- -------------------------------------------------------------------------------------------------------------------------------
+ Commencement of operations.
* Not annualized.
(a) Total investment return assumes dividend reinvestment and does not reflect the effect of sales charges.
(b) The ratio of expenses to average net assets for the period ended September 30, 1995 and thereafter,
includes amounts paid through expense offset arrangements. Prior period ratios exclude these amounts (Note 2).
</TABLE>
Notes to financial statements
March 31, 1998 (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. 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
systemic investments plans. Shareholders who acquired class B shares through
an exchange are subject to the same contingent deferred sales charge schedule
as the fund from which they were exchanged. Class B shares, which convert
Class A shares, after approximately eight years, 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 other Putnam funds). Class M shares pay an ongoing distribution fee
lower than class B shares 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 such class). Each class votes as a class
only with respect to its own distribution plan or other matters on which a
class vote is required by law or determined by the Trustees. Shares of each
class would receive their pro-rata share of the net assets of the fund, if the
fund were liquidated. In addition, the Trustees declare separate dividends on
each class of shares.
The following is a summary of significant accounting policies consistently
followed by the fund in the preparation of its financial statements. The
preparation of financial statements is in conformity with generally accepted
accounting principles and requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities. Actual
results could differ from those estimates.
A) Security valuation 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 of other registered
investment companies and certain other accounts managed by Putnam Investment
Management, Inc. ("Putnam Management"), the fund's Manager, a wholly-owned
subsidiary of Putnam Investments, Inc.. These balances may be invested in one
or more repurchase agreements and/or short-term money market instruments.
C) Security transactions Security transactions are accounted for on the trade
date (date the order to buy or sell is executed).
D) 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
imposition of any excise tax under Section 4982 of the Internal Revenue Code
of 1986, as amended. Therefore, no provision has been made for federal taxes
on income, capital gains or unrealized appreciation on securities held nor for
excise tax on income and capital gains.
E) Interest income and distributions to shareholders Interest is recorded on
the accrual basis. Income dividends (and distributions of realized gains, if
any) are recorded daily by the fund and are distributed monthly to the
shareholders.
F) Amortization of bond premium and accretion of bond discount Premiums and
discounts from purchases of short-term investments are amortized/accreted
using the straight-line method.
Note 2
Management fee, administrative services and other transactions
Compensation of Putnam Management, for management and investment advisory
services is paid quarterly based on the average net assets of the fund. Such
fee is based on the following annual rates: 0.50% of the first $100 million of
average net assets, 0.40% of the next $100 million, 0.35% of the next $300
million, 0.325% of the next $500 million, and 0.30% of any amount over $1
billion.
The fund reimburses Putnam Management an allocated amount for the compensation
and related expenses of certain officers of the fund and their staff who
provide administrative services to the fund. The aggregate amount of all such
reimbursements is determined annually by the Trustees.
Custodial functions for the fund's assets are provided by Putnam Fiduciary
Trust Company (PFTC), a wholly-owned subsidiary of Putnam Investments, Inc.
Investor servicing agent functions are provided by Putnam Investor Services, a
division of PFTC.
For the six months ended March 31, 1998, fund expenses were reduced by
$861,595 under expense offset arrangements with PFTC. Investor servicing and
custodian fees reported in the Statement of operations exclude these credits.
The fund could have invested a portion of the assets utilized in connection
with the expense offset arrangements in an income producing asset if it had
not entered into such arrangements.
Each Trustee of the fund receives an annual Trustee fee, of which $1,600 has
been allocated to the fund, and an additional fee for each Trustee's meeting
attended. Trustees who are not interested persons of Putnam Management and who
serve on committees of the Trustees receive additional fees for attendance at
certain committee meetings.
The fund has adopted a Trustee Fee Deferral Plan (the "Deferral Plan") which
allows the Trustees to defer the receipt of all or a portion of Trustees Fees
payable on or after July 1, 1995. The deferred fees remain in the fund and are
invested in certain Putnam funds until distribution in accordance with the
Deferral Plan.
The fund has adopted an unfunded noncontributory defined benefit pension plan
(the "Pension Plan") covering all Trustees of the fund who have served as
Trustee for at least five years. Benefits under the Pension Plan are equal to
50% of the Trustee's average total retainer and meeting fees for the three
years preceding retirement. Pension expense for the fund is included in
Compensation of Trustees in the Statement of operations. Accrued pension
liability is included in Payable for compensation of Trustees in the Statement
of assets and liabilities.
The fund has adopted distribution plans (the "Plans") with respect to its
class 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 Plans provide for payments by the fund to Putnam Mutual Funds Corp.
at an annual rate up to 0.75% and 1.00% of the average net assets attributable
to class B and class M shares, respectively. The Trustees currently limit
payment by the fund to 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 six months ended March 31, 1998, Putnam Mutual Funds Corp., acting as
underwriter received $1,618,494 in contingent deferred sales charges from
redemptions of class B shares. A deferred sales charge of up to 1% is assessed
on certain redemptions of class A shares. For the six months ended March
31, 1998, Putnam Mutual Funds, Corp., acting as the underwriter received no
monies in contingent deferred sales charges from redemptions of class A shares
acquired through an exchange from another fund. For the six months ended March
31, 1998, Putnam Mutual Funds Corp., acting as underwriter received no monies
on class A redemptions.
Note 3
Purchases and sales of securities
During the six months ended March 31, 1998, purchases and sales (including
maturities) of investment securities (all short-term obligations) aggregated
$28,987,458,668 and $28,911,694,935, 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, 1998, there was an unlimited number of shares of beneficial
interest authorized. Transactions in capital shares at a constant net asset
value of $1.00 per share were as follows:
Six months ended Year ended
March 31 September 30
- ------------------------------------------------------------
Class A 1998 1997
- ------------------------------------------------------------
Shares sold 3,471,156,552 15,480,603,384
- ------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 50,455,759 101,004,236
- ------------------------------------------------------------
3,521,612,311 15,581,607,620
Shares
repurchased (3,535,760,104) (15,106,672,041)
- ------------------------------------------------------------
Net (decrease)
increase (14,147,793) 474,935,579
- ------------------------------------------------------------
Six months ended Year ended
March 31 September 30
- ------------------------------------------------------------
Class B 1998 1997
- ------------------------------------------------------------
Shares sold 983,852,782 2,550,729,879
- ------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 8,904,403 19,704,929
- ------------------------------------------------------------
992,757,185 2,570,434,808
Shares
repurchased (1,014,225,895) (2,597,865,336)
- ------------------------------------------------------------
Net decrease (21,468,710) (27,430,528)
- ------------------------------------------------------------
Six months ended Year ended
March 31 September 30
- ------------------------------------------------------------
Class M 1998 1997
- ------------------------------------------------------------
Shares sold 168,470,641 431,207,895
- ------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 1,431,535 2,183,663
- ------------------------------------------------------------
169,902,176 433,391,558
Shares
repurchased (169,228,675) (403,964,967)
- ------------------------------------------------------------
Net increase 673,501 29,426,591
- ------------------------------------------------------------
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Fund information
INVESTMENT MANAGER
Putnam Investment
Management, Inc.
One Post Office Square
Boston, MA 02109
MARKETING SERVICES
Putnam Mutual Funds Corp.
One Post Office Square
Boston, MA 02109
CUSTODIAN
Putnam Fiduciary Trust Company
LEGAL COUNSEL
Ropes & Gray
TRUSTEES
George Putnam, Chairman
William F. Pounds, Vice Chairman
Jameson Adkins Baxter
Hans H. Estin
John A. Hill
Ronald J. Jackson
Paul L. Joskow
Elizabeth T. Kennan
Lawrence J. Lasser
John H. Mullin III
Robert E. Patterson
Donald S. Perkins
George Putnam, III
A.J.C. Smith
W. Thomas Stephens
W. Nicholas Thorndike
OFFICERS
George Putnam
President
Charles E. Porter
Executive Vice President
Patricia C. Flaherty
Senior Vice President
John D. Hughes
Senior Vice President and Treasurer
Lawrence J. Lasser
Vice President
Gordon H. Silver
Vice President
Ian C. Ferguson
Vice President
William J. Curtin
Vice President
William F. McGue
Vice President
Joanne M. Driscoll
Vice President and Fund Manager
William N. Shiebler
Vice President
John R. Verani
Vice President
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. You can also learn more at Putnam
Investments' website: http://www.putnaminv.com.
Shares of mutual funds are not deposits or obligations of, or guaranteed or
endorsed by, any financial institution; are not insured by the Federal Deposit
Insurance Corporation (FDIC), the Federal Reserve Board, or any other agency;
and involve risk, including the possible loss of the principal amount
invested.
[LOGO OMITTED]
PUTNAM INVESTMENTS
The Putnam Funds
One Post Office Square
Boston, Massachusetts 02109
- --------------------
Bulk Rate
U.S. Postage
PAID
Putnam
Investments
- --------------------
SA039-42047 010/879/534 5/98
