Putnam
Global
Growth
Fund
SEMIANNUAL REPORT
April 30, 1997
[LOGO: BOSTON * LONDON * TOKYO]
Fund highlights
* "On the whole, Putnam Global Growth Fund is a good choice for those
seeking a world stock fund with limited volatility."
-- Morningstar Mutual Funds, February 14, 1997
* "We evaluate both countries and individual stocks when shaping your
fund's portfolio. In each case, we are supported by Putnam's
extensive resources, receiving input from the Global Asset Allocation
group in setting country weightings, and from global industry
in choosing stocks."
-- Robert J. Swift, manager
Putnam Global Growth Fund
CONTENTS
4 Report from Putnam Management
9 Fund performance summary
13 Portfolio holdings
23 Financial statements
From the Chairman
[GRAPHIC OMITTED: PHOTO OF GEORGE PUTNAM]
[copyright] Karsh, Ottawa
Dear Shareholder:
Diversification beyond national boundaries is a matter
of growing importance to U.S. investors as their awareness of the
interdependent nature of the global economy heightens. Managing a
globally diversified portfolio consequently has become an increasingly
complex challenge. I am pleased to announce the addition of two new
members to your fund's management team, Thomas Haslett and Kelly A.
Morgan.
As chief investment officer for emerging markets equities, Tom brings to
your fund an important area of expertise. Before joining Putnam in 1996,
he was with Montgomery Asset Management, Ltd., Gannett, Welsh & Kotler,
Inc., and Miller, Tabak, Hirsch and Co. Tom has 15 years of investment
experience. Kelly joined Putnam in 1996 after a decade with Alliance
Capital Management, where she was a global equity portfolio manager. She
has 13 years of investment management experience.
In the following report, your fund's management team discusses
performance so far in fiscal 1997 and looks at prospects for the
remainder of the year.
Respectfully yours,
/S/GEORGE PUTNAM
George Putnam
Chairman of the Trustees
June 18, 1997
Report from the Fund Managers
Robert J. Swift, lead manager
Anthony W. Regan
Ami Kuan Danoff
Kelly A. Morgan
Carol McMullen
C. Kim Goodwin
Aided mostly by sound stock picking in the positive markets of Western
Europe, Putnam Global Growth Fund experienced a solid semiannual period.
For the six months ended April 30, 1997, performance of your fund's
class A shares -- a gain of 8.93% at net asset value -- nicely outpaced
the Morgan Stanley Capital International World Index, which rose 7.56%
over the same period. At maximum public offering price, class A shares
returned 2.64%. For performance over longer periods and for other share
classes, please turn to page 9 of this report. While remaining risk-
conscious, we continued to focus on companies with demonstrated revenues
and earnings growth -- and strong prospects for continued expansion.
* WESTERN EUROPEAN MARKETS SHOW STRONGEST PERFORMANCE
Political uncertainty and unemployment beset key markets in Western
Europe over the past year, making it an unlikely region for equity
strength. Nevertheless, many stock markets across the Continent moved
steadily upward over the past six months. We believe this positive
performance was driven by the hope for better shareholder returns
following corporate restructurings, begun in the early 1990s, which have
increased the efficiency and profitability of many European companies.
We are upbeat about prospects for a number of German corporations in the
coming months. Among them is Bayer, a fund holding. This globally
competitive pharmaceutical and chemical firm is now actively managed on
behalf of shareholders. Indeed, Bayer has long offered an excellent
array of products, but is more profitable today than in the past because
of a renewed emphasis on return on capital. Another German holding,
Fresenius Medical Care, is a smaller firm with excellent growth
potential. Fresenius develops and sells kidney-treatment devices and has
substantially increased its market share. While these stocks, along with
others discussed in this report, were viewed favorably at the end of the
fiscal period, all portfolio holdings are subject to review and
adjustment in accordance with the fund's investment strategy and may
vary in the future.
In France, we continue to be optimistic about prospects for SGS-Thomson
Microelectronics, a leading semiconductor company. With its ability to
offer businesses custom-manufactured components, SGS-Thomson managed to
prosper despite the 1996 downturn in global demand for memory chips.
Elsewhere in Western Europe, your fund owns shares of ABN-AMRO, an
efficient, profitable Netherlands bank with sound plans for expansion in
North America and Asia. Your fund's portfolio includes such world-class
Swiss companies as Nestle, Roche, and the pharmaceutical firm Novartis
(formed by the merger of giants Sandoz and Ciba-Geigy). The fund's
holdings also include shares of the United Kingdom's SmithKline Beecham,
another global pharmaceuticals firm.
* ASIAN MARKETS APPEAR POISED FOR GROWTH
Japan's stock market difficulties continued throughout the period.
However, your fund owned shares of selected Japanese companies with
strong overseas operations, many of which performed well despite the
falling Nikkei Index. Among your fund's Japanese holdings is Advantest
Corp., a maker of semiconductor testing equipment. Another Japanese fund
holding, Sankyo, manufactures pharmaceuticals, selling therapeutic
treatments through subsidiaries in the United States, India, Taiwan, and
Thailand. The electronics firm NEC Corp. also withstood Japan's domestic
difficulties, turning in strong stock performance over the past six
months.
[GRAPHIC OMITTED: horizontal bar chart COUNTRY ALLOCATION]
COUNTRY ALLOCATION*
United States 24.9%
Japan 17.1%
United Kingdom 8.9%
The Netherlands 5.9%
Switzerland 5.6%
France 5.5%
Germany 3.9%
Australia 2.8%
Hong Kong 2.8%
Sweden 2.2%
Italy 2.1%
Footnote reads:
* Based on net assets as of 4/30/97. Holdings will vary over time.
Hong Kong had a generally buoyant market throughout the period, as
investors concluded that the fast-approaching turnover of power to China
would be relatively smooth. Hong Kong companies positioned to benefit
from closer ties with the mainland were particularly robust, among them
Guoco Group. A conglomerate with banking, manufacturing, and property
interests, Guoco has been making strategic property acquisitions in
Singapore, Malaysia, and the Philippines. HSBC Holdings is the largest
banking company in Hong Kong, with operations in the United Kingdom,
China, and the United States. HSBC -- the world's leading bank
in terms of net profits -- has long offered an excellent way to benefit
from the Asia Pacific region's vast demand for financial services.
Elsewhere in Asia, your fund owns stocks in Malaysia, the Philippines,
Singapore, South Korea, and Taiwan. While these holdings represent a
fairly small percentage of the portfolio, we believe they offer
exceptional growth opportunities. Indeed, emerging markets in Asia --
and elsewhere -- play a small but helpful role in your fund's
performance, adding a robust growth element at the margins.
* U.S. MARKET ENDURES A PERIOD OF VOLATILITY
Substantial volatility, long absent from U.S. markets, returned during
your fund's semiannual period. While stocks of large companies were
spared much of this difficulty, most others fell dramatically from
investor favor. The small and midsize growth stocks on which your fund
has recently focused experienced especially poor performance over the
period. Nevertheless, as is Putnam's policy, we stayed with our stated
growth objective, not shifting to meet temporary changes in the market.
Such a focus on occasion can dampen performance, but we believe it
positions the fund most effectively for stronger results over the long
term.
TOP 10 HOLDINGS
SmithKline Beecham (United Kingdom)
Pharmaceuticals
SGS-Thomson Microelectronics (France)
Semiconductors
Vodafone Group (United Kingdom)
Telecommunications
Advantest Corp. (Japan)
Semiconductors
Tokyo Electron Ltd. (Japan)
Semiconductors
Bayer AG (Germany)
Pharmaceuticals
Total (France)
Oil and gas
Roche Holdings (Switzerland)
Pharmaceuticals
Sankyo Co. Ltd. (Japan)
Pharmaceuticals
Swiss Reinsurance Co. (Switzerland)
Insurance
Footnote reads:
These holdings represent 12.6% of the fund's net assets as of 4/30/97.
Portfolio holdings will vary over time.
During the period, your fund's extensive technology holdings -- most
notably networking and software stocks -- were also caught in the market
downdraft. As of this report, many of these stocks had already begun to
recover, and we are particularly optimistic about continued prospects for
Cisco Systems, a world leader in networking software. Adaptec is another
company we consider fundamentally strong, although its performance has
been hampered by current market sentiment. It manufactures and sells
hardware and software that facilitates the fast transfer of information
between computers.
Also among the fund's U.S.-based holdings is Cardinal Health, a wholesale
distributor of pharmaceutical and other supplies. We also believe that fund
holding Paychex Inc., a payroll processing firm that serves small and midsize
companies, has superb long-term growth potential.
* NEAR-TERM OUTLOOK RELATIVELY OPTIMISTIC
We are optimistic about prospects for your fund in the coming months.
Inflation remains temperate in most markets, providing an encouraging
environment for equities. Overall economic growth is expected to be
strong throughout the rest of 1997 and into 1998, which should help to
fuel business revenues and profits. Of course, individual stock
selection is a vital aspect of your fund's strategy, and we are
confident that our rigorous research process will enable us to continue
identifying attractive growth stocks -- both in the United States and
abroad.
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 4/30/97, there is no guarantee the fund will
continue to hold these securities in the future. International investing
involves certain risks, including currency fluctuations, political
developments, and economic instability.
Performance summary
This section provides information about your fund's performance, which
should always be considered in light of its investment strategy. Putnam
Global Growth Fund is designed for investors seeking capital
appreciation through a globally diversified equity portfolio.
TOTAL RETURN FOR PERIODS ENDED 4/30/97
Class A Class B Class M
(inception date) (9/1/67) (4/27/92) (3/1/95)
NAV POP NAV CDSC NAV POP
- -------------------------------------------------------------------------
6 months 8.93% 2.64% 8.58% 3.58% 8.62% 4.83%
- -------------------------------------------------------------------------
1 year 12.27 5.79 11.47 6.47 11.65 7.74
- -------------------------------------------------------------------------
5 years 80.38 70.04 -- -- -- --
Annual average 12.52 11.20 -- -- -- --
- -------------------------------------------------------------------------
10 years 143.99 129.94 -- -- -- --
Annual average 9.33 8.68 -- -- -- --
- -------------------------------------------------------------------------
Life of fund -- -- 75.02 74.02 42.93 37.95
Annual average -- -- 11.82 11.69 17.89 15.98
- -------------------------------------------------------------------------
COMPARATIVE INDEX RETURNS FOR PERIODS ENDED 4/30/97
MSCI EAF MSCI S&P 500 Consumer
Index World Index Index Price Index
- -------------------------------------------------------------------------
6 months 1.57% 7.56% 14.71% 1.20%
- -------------------------------------------------------------------------
1 year -0.89 10.34 25.12 2.50
- -------------------------------------------------------------------------
5 years 65.38 85.92 119.75 14.84
Annual average 10.59 13.21 17.06 2.81
- -------------------------------------------------------------------------
10 years 62.94 118.79 274.55 42.15
Annual average 5.00 8.14 14.12 3.58
- -------------------------------------------------------------------------
Life of class B 65.38 85.92 119.75 14.84
Annual average 10.59 13.21 17.06 2.80
- -------------------------------------------------------------------------
Life of class M 21.71 42.01 72.62 6.16
Annual average 9.49 17.56 28.63 2.79
- -------------------------------------------------------------------------
Performance data represent past results, do not reflect future
performance, and will differ for each share class. They do not take into
account any adjustment for taxes payable on reinvested distributions or,
for class A shares, distribution fees prior to implementation of the
class A distribution plan in 1990. Investment returns and principal
value will fluctuate so that an investor's shares, when sold, may be
worth more or less than their original cost. POP assumes 5.75% maximum
sales charge for class A shares and 3.50% for class M shares. CDSC for
class B shares assumes the applicable sales charge, with the maximum
being 5%.
PRICE AND DISTRIBUTION INFORMATION
6 months ended 4/30/97
Class A Class B Class M
- ------------------------------------------------------------------------------
Distributions (number) 1 1 1
- ------------------------------------------------------------------------------
Income $0.275 $0.203 $0.249
- ------------------------------------------------------------------------------
Capital gains
- ------------------------------------------------------------------------------
Long-term 0.296 0.296 0.296
- ------------------------------------------------------------------------------
Short-term 0.249 0.249 0.249
- ------------------------------------------------------------------------------
Total $0.820 $0.748 $0.794
- ------------------------------------------------------------------------------
Share value: NAV POP NAV NAV POP
- ------------------------------------------------------------------------------
10/31/96 $11.10 $11.78 $10.78 $11.05 $11.45
- ------------------------------------------------------------------------------
4/30/97 11.23 11.92 10.92 11.17 11.58
- ------------------------------------------------------------------------------
TOTAL RETURN FOR PERIODS ENDED 3/31/97
(most recent calendar quarter)
Class A Class B Class M
NAV POP NAV CDSC NAV POP
- ------------------------------------------------------------------------------
6 months 6.02% -0.09% 5.50% 0.58% 5.61% 1.93%
- ------------------------------------------------------------------------------
1 year 11.33 4.89 10.40 5.40 10.71 6.87
- ------------------------------------------------------------------------------
5 years 80.99 70.54 -- -- -- --
Annual average 12.60 11.27 -- -- -- --
- ------------------------------------------------------------------------------
10 years 140.18 126.36 -- -- -- --
Annual average 9.16 8.51 -- -- -- --
- ------------------------------------------------------------------------------
Life of class -- -- 70.37 68.37 39.22 34.37
Annual average -- -- 11.41 11.15 17.15 15.18
- ------------------------------------------------------------------------------
Performance data represent past results, do not reflect future
performance, and will differ for each share class. Investment returns
and principal value will fluctuate so that an investor's shares, when
sold, may be worth more or less than their original cost.
TERMS AND DEFINITIONS
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.
Class A shares are generally subject to an initial sales charge.
Class B shares may be subject to a sales charge upon redemption.
Class M shares have a lower initial sales and a higher 12b-1 fee than
class A shares and no sales charge on redemption.
Net asset value (NAV) is the value of all your fund's assets, minus any
liabilities, divided by the number of outstanding shares, not including
any initial or contingent deferred sales charge.
Public offering price (POP) is the price of a mutual fund share plus the
maximum sales charge levied at the time of purchase. POP performance
figures shown here assume the maximum 5.75% sales charge for class A
shares and 3.50% for class M shares.
Contingent deferred sales charge (CDSC) is a charge applied at
the time of the redemption of class B shares and assumes redemption at
the end of the period. Your fund's CDSC declines from a 5% maximum
during the first year to 1% during the sixth year. After the sixth year,
the CDSC no longer applies.
COMPARATIVE BENCHMARKS
Standard & Poor's 500 Index* is an unmanaged list of common stocks that is
frequently used as a general measure of stock market performance.
Morgan Stanley Capital International (MSCI) EAFE Index* is an unmanaged
list of equity securities from Europe, Australia and the Far East, with all
values expressed in U.S. dollars.
Morgan Stanley Capital International (MSCI) World Index* is an unmanaged
list of global equity securities, with all values expressed in U.S.
dollars.
Consumer Price Index (CPI) is a commonly used measure of inflation; it
does not represent an investment return.
* Securities indexes assume reinvestment of all distributions and interest
payments and do not take in account brokerage fees or taxes. Securities in
the fund do not match those in the indexes and performance of the fund
will differ. It is not possible to invest directly in an index.
PUTNAM GROWTH FUNDS
Asia Pacific Growth Fund
Capital Appreciation Fund
Diversified Equity Trust
Europe Growth Fund
Global Growth Fund
Global Natural Resources Fund *
Health Sciences Trust
International Growth Fund +
International New Opportunities Fund
Investors Fund
New Opportunities Fund
OTC & Emerging Growth Fund [DBL. DAGGER]
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
International Growth and Income Fund
New Value Fund
Utilities Growth and Income Fund
PUTNAM INCOME FUNDS
American Government Income Fund
Diversified Income Trust
Diversified Income Trust II
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
Municipal Income Fund
Tax Exempt Income 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
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
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 [2 DBL. DAGGERS]
* Formerly Natural Resources Fund
+ Formerly Overseas Growth Fund
[DBL. DAGGER] Formerly OTC Emerging Growth Fund
[SECTION MARK] Not available in all states.
** Relative to above.
++ 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.
[2 DBL. DAGGERS] Not offered by Putnam Investments. Certificates of
deposit offer a fixed rate of return and may be insured up to certain
limits by federal/state agencies. Savings accounts may also be insured
up to certain limits. Please call your financial advisor or Putnam at
1-800-225-1581 to obtain a prospectus for any Putnam fund. It contains
more complete information, including charges and expenses. Please read
it carefully before you invest or send money.
Portfolio of investments owned
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
COMMON STOCKS (94.8%) *
NUMBER OF SHARES VALUE
Argentina (0.3%)
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------
74,667 Banco De Galicia y Buenos Aires Class B ADR + 1,816,508
309,923 Banco Frances del Rio de la Plata S.A. ADR 3,124,336
37,700 Disco S.A. ADR + 1,168,700
48,000 Inversiones Y Represent ADR 1,680,000
93,500 Telefonica de Argentina S.A. ADR 3,108,875
87,700 YPF S.A. ADR 2,422,713
--------------
13,321,132
Australia (2.8%)
- ------------------------------------------------------------------------------------------------------------
4,417,000 Australia & New Zealand Banking Group Ltd. 28,231,149
2,500,000 Biota Holdings Ltd. + 8,194,200
374,100 Coca-Cola Amatil Ltd. 4,279,661
2,352,625 QBE Insurance Group Ltd. 13,457,796
11,389,000 Sydney Harbor Casino + 19,198,027
2,310,000 Westpac Banking Corp. 12,456,823
3,799,000 Woodside Petroleum Ltd. 30,240,344
--------------
116,058,000
Austria (0.1%)
- ------------------------------------------------------------------------------------------------------------
241,820 Mayr-Melnhof Karton AG 144A ADS + 2,811,158
Brazil (0.4%)
- ------------------------------------------------------------------------------------------------------------
123,200 Brazil Realty S.A. 3,295,600
55,700 Comp Energetica De Minas Gerais (Cemig) 144A ADS 2,520,425
7,800,000 Compania Paulista de Forca e Luz (CPFL) 1,210,529
67,600,000 Compania Siderurgica Nacional 2,415,239
5,800,000 Eletropaulo-Eletricidade de Sao Paulo S.A. Class B + 1,164,582
7,370,000 Light Participacoes, S.A. 2,349,694
109,300 Multicanal Participacoes S.A. ADR + 1,584,850
24,200 Telebras Co. ADR 2,776,950
--------------
17,317,869
Canada (1.4%)
- ------------------------------------------------------------------------------------------------------------
93,100 Indochina Goldfields Ltd. + 856,237
225,000 Magna International, Inc. Class A 11,728,125
619,900 Northern Telecom Ltd. + 45,077,183
333,500 Super Sol Ltd. + 996,385
--------------
58,657,930
Chile (0.1%)
- ------------------------------------------------------------------------------------------------------------
101,000 Compania De Tele Chile ADS 3,269,875
60,800 Santa Isabel S.A. ADR + 1,482,000
--------------
4,751,875
Denmark (0.3%)
- ------------------------------------------------------------------------------------------------------------
221,200 Danisco A/S + 12,831,952
Finland (1.1%)
- ------------------------------------------------------------------------------------------------------------
691,000 Oy Nokia AB Class A 43,152,581
France (5.5%)
- ------------------------------------------------------------------------------------------------------------
101,000 Canal Plus ADR 18,265,957
31,300 Carrefour Supermarche SA 19,570,556
124,608 Cetelem Group 14,539,025
325,600 Credit Locale de France S.A. 30,168,840
71,289 Guilbert S.A. + 11,131,261
717,800 SGS-Thomson Microelectronics ADR + 56,257,575
18,730 Sommer Allibert 674,897
592,700 Total S.A. Class B + 49,222,169
417,360 Valeo S.A. 25,780,645
--------------
225,610,925
Germany (3.9%)
- ------------------------------------------------------------------------------------------------------------
89,710 Adidas AG + 9,364,247
108,300 Adidas AG 144A + 11,210,791
1,240,500 Bayer AG ADR 49,427,742
281,500 Deutsche Telekom AG + 6,117,725
438,800 Deutsche Telekom AG ADR + 9,434,200
1,064,000 Dresdner Bank AG + 34,088,365
297,000 Fresenius Medical Care AG + 26,055,344
96,520 SGL Carbon AG 13,479,979
--------------
159,178,393
Hong Kong (2.8%)
- ------------------------------------------------------------------------------------------------------------
20,000 Asia Satellite Telecommunications Holdings Ltd. ADR + 515,000
855,000 Cheung Kong Infrastructure Holdings 2,422,831
1,486,000 Dao Heng Bank Group Ltd. 7,059,747
4,912,200 Guoco Group Ltd. 23,337,072
1,463,554 HSBC Holdings PLC 37,032,867
9,210,000 National Mutual Asia Ltd. 9,512,005
1,192,400 New World Infrastructure Ltd. + 3,371,232
346,200 Swire Pacific Ltd. Class A 2,670,469
6,970,000 Television Broadcasts Ltd. 28,614,253
--------------
114,535,476
India (0.3%)
- ------------------------------------------------------------------------------------------------------------
54,000 East India Hotel Ltd. 144A GDR 864,000
100,000 Gujarat Ambuja Cements Ltd. + 975,000
321,000 Mahanagar Telephone Nigam Ltd. 2,640,513
64,000 State Bank of India 144A GDR + 1,536,000
102,000 State Bank of India Ltd. + 909,796
55,680 Tata Engineering and Locomotive Co. Ltd. 144A GDR + 682,080
156,000 Tata Engineering and Locomotive Co. Ltd. + 1,761,996
49,300 Videsh Sanchar Nigam Ltd. 144A GDR + 955,188
--------------
10,324,573
Indonesia (0.3%)
- ------------------------------------------------------------------------------------------------------------
4,282,000 PT Bank International Indonesia + 3,084,999
82,000 PT Pasifik Satelit Nusantara ADR + 820,000
1,070,000 PT Ramayana Lestari Sentosa + 2,598,999
883,000 PT Semen Gresik + 2,153,869
92,400 PT Telekomunikasi Indonesia ADR + 2,633,400
344,000 Sampoerna Industries + 1,384,349
--------------
12,675,616
Ireland (1.4%)
- ------------------------------------------------------------------------------------------------------------
1,245,000 Bank of Ireland 12,957,493
1,376,567 CRH PLC 13,430,080
6,320,950 Greencore Group PLC 32,183,117
--------------
58,570,690
Israel (0.1%)
- ------------------------------------------------------------------------------------------------------------
526,000 Bank Hapoalim Ltd. + 1,120,300
37,200 Tadiran Ltd. 981,582
--------------
2,101,882
Italy (2.1%)
- ------------------------------------------------------------------------------------------------------------
5,262,800 Ente Nazionale Idrocarburi SPA + 26,745,086
433,900 Gucci Group + 30,101,813
8,883,000 Telecom Italia Mobile SPA + 27,973,882
--------------
84,820,781
Japan (17.1%)
- ------------------------------------------------------------------------------------------------------------
940,500 Advantest Corp. 52,204,776
1,638,000 Canon, Inc. 38,818,854
1,314,000 Dai Nippon Printing Co., Ltd. 23,691,533
1,135,000 Denso Co., Ltd. 25,825,933
650,000 Fanuc 22,159,684
4,415,000 Fuji Heavy Industries 22,003,752
240,000 Hirose Electric Co. Ltd. 13,113,935
305,000 Hoya Corp. 13,976,072
183,700 Keyence Corp 22,418,325
715,000 Kurita Water Industries Ltd. 15,087,009
369,000 Murata Manufacturing Co. 13,596,732
3,824,000 NEC Corp. 46,667,216
2,378,000 Nikon Corp. 34,075,760
850,000 Omron Corp. 16,061,736
1,825,000 Ricoh Co., Ltd. 21,697,122
587,000 Rohm Co. Ltd. 45,477,388
1,757,000 Sankyo Co., Ltd. 47,034,117
40,900 Santen Pharmaceutical Co. Ltd 734,210
225,000 Secom Co. 13,374,938
465,000 Seven-Eleven Japan 29,472,105
1,767,000 Shin-Etsu Chemical Co. 35,615,482
449,800 Takefuji Corp. 144A 21,532,048
214,600 Takefuji Corp. 10,323,649
893,000 Taisho Pharmaceutical Co. 22,077,171
417,000 TDK Corp. 30,041,351
355,000 Tokyo Broadcasting System 5,534,213
1,296,900 Tokyo Electron Ltd. 50,033,961
439,000 Yamatake-Honeywell 6,532,639
--------------
699,181,711
Malaysia (1.5%)
- ------------------------------------------------------------------------------------------------------------
585,000 Arab Malaysian Corp. Berhad + 2,424,581
891,000 DCB Holdings 2,893,895
722,000 Genting Berhad Co. + 3,855,577
1,072,000 IJM Corp. Berhad 2,349,659
1,995,000 IOI Corp. 2,480,533
239,000 Magnum Corp. Berhad 379,078
300,000 Malayan Banking Berhad 2,988,881
261,000 Malaysian Assurance Alliance + 1,404,176
1,000,000 Multi-Purpose Holdings Berhad + 1,633,922
4,390,000 Perusahaan Otomobil Nasional Berhad 26,242,380
326,000 Public Bank Berhad + 540,454
105,000 Tanjong PLC 380,783
517,000 Technology Resources Industries Berhad + 947,754
381,000 United Engineers Ltd. + 2,702,666
2,643,000 YTL Corp. Berhad 10,743,474
14,300 YTL Power International Berhad 21,086
--------------
61,988,899
Mexico (1.0%)
- ------------------------------------------------------------------------------------------------------------
365,000 AXA S.A. + 22,489,962
300,000 Cemex, S.A. de C.V. + 995,722
544,000 Cemex, S.A. de C.V. Class B + 1,998,591
836,400 Fomento Economico Mexicano, S.A. de C.V. Class B + 3,925,229
126,100 Grupo Imsa S.A. ADR 2,711,150
648,000 Industrias Penoles S.A. + 3,032,914
148,800 Panamerican Beverages, Inc., Class A 4,315,200
--------------
39,468,768
Netherlands (5.9%)
- ------------------------------------------------------------------------------------------------------------
374,862 ABN AMRO Holding N.V. + 25,797,411
351,000 ASM Lithography Holding N.V. + 26,247,880
733,000 Baan Co., N.V. + 38,463,946
1,028,104 Getronics Electric N.V. 31,175,483
600,000 IHC Caland N.V. + 29,665,416
804,696 Internationale Nederlanden Groep 31,638,610
143,780 Koninklijke Ahold N.V. 9,828,206
40,100 Nutricia Verenigde Bedrijven N.V. + 6,092,183
133,600 Unilever N.V. 26,016,878
378,800 Vendex International N.V. + 18,008,429
--------------
242,934,442
New Zealand (0.1%)
- ------------------------------------------------------------------------------------------------------------
511,400 Telecom Corp. of New Zealand Ltd. 2,291,646
Pakistan (--%)
- ------------------------------------------------------------------------------------------------------------
30 Pakistan State Oil 226
Philippines (0.3%)
- ------------------------------------------------------------------------------------------------------------
8,157,000 Belle Corp. + 1,950,250
6,451,400 Fil-Estate Land, Inc. 1,836,262
3,253,000 International Container Terminal Services, Inc. 1,913,529
375,000 Manila Electric Co. Class B 2,333,966
7,475,000 Petron Corp. 2,751,707
94,300 Philippine Commercial International 1,163,093
38,600 Philippine Long Distance Telephone Co. ADR 2,151,950
--------------
14,100,757
Portugal (1.2%)
- ------------------------------------------------------------------------------------------------------------
110,900 Colep-Companhia Portuguesa de Embalagens + 1,520,404
105,000 Investec Consultadoria International + 3,471,170
1,121,800 Portugal Telecom S.A. 41,389,002
30,600 Telecel-Comunicacaoes Pessoais, S.A. + 2,631,600
--------------
49,012,176
Russia (0.3%)
- ------------------------------------------------------------------------------------------------------------
58,100 AO Mosenergo 144A ADS 2,265,900
50,400 Lukoil Oil Co. ADR 2,835,000
620,000 Rostelecom + 2,331,200
60,300 Tatneft 144A ADR + 4,522,500
--------------
11,954,600
Singapore (1.0%)
- ------------------------------------------------------------------------------------------------------------
1,106,000 Malayan Banking Berhad + 11,019,009
3,032,000 Overseas Union Bank Ltd. 19,910,140
1,120,000 United Overseas Bank Ltd. + 10,528,790
--------------
41,457,939
South Africa (0.2%)
- ------------------------------------------------------------------------------------------------------------
76,100 Energy Africa Ltd. 144A + 1,598,100
558,000 Gencor Ltd. 2,346,700
2,209,891 SA Iron & Steel Industrial Corp. 1,530,747
214,000 Sasol Ltd. 2,743,281
--------------
8,218,828
South Korea (0.2%)
- ------------------------------------------------------------------------------------------------------------
40,920 Hyundai Electronics Industries Co. + 1,636,807
136,200 Kookmin Bank GDR 2,383,500
60,000 Korea Electric Power Corp. 1,793,266
2,648 SK Telecom Co. Ltd. 2,035,100
78,400 SK Telecom Co. Ltd. ADR 744,800
--------------
8,593,473
Spain (1.2%)
- ------------------------------------------------------------------------------------------------------------
531,231 Banco de Bilbao Vizcaya 35,842,797
194,000 Banco Santander S.A. 14,632,475
--------------
50,475,272
Sweden (2.2%)
- ------------------------------------------------------------------------------------------------------------
669,450 Sandvik AB Class B 16,471,679
979,000 Skandia Forsakrings AB 28,331,592
1,475,000 Telefonaktiebolaget LM Ericsson Class B 46,634,371
--------------
91,437,642
Switzerland (5.6%)
- ------------------------------------------------------------------------------------------------------------
23,260 ABB AG Baden 28,244,286
29,620 Adecco S.A. + 9,913,633
33,280 Nestle S.A. + 40,524,626
26,287 Novartis AG ADR 34,727,452
5,703 Roche Holdings AG 48,300,918
40,413 Swiss Reinsurance Co. 46,901,074
22,500 Union Bank of Switzerland 21,352,041
--------------
229,964,030
Taiwan (0.2%)
- ------------------------------------------------------------------------------------------------------------
907,000 Acer Inc. + 2,313,441
53,500 Advanced Semiconductor Engineering GDR + 1,144,900
116,800 China Steel Corp. GDR 2,628,000
1,115,000 Yieh Phui Enterprise + 1,629,740
--------------
7,716,081
Thailand (0.2%)
- ------------------------------------------------------------------------------------------------------------
223,600 Advanced Info Service Public Co., Ltd. 1,490,096
115,600 Bangkok Bank Public Co. Ltd. 1,071,436
296,200 Central Pattana Public Co. Ltd. 1,020,988
441,000 Industrial Finance Corp. 1,182,306
302,000 Siam Makro Public Co. 665,071
130,000 Thai Farmers Bank Public Co. 786,672
--------------
6,216,569
United Kingdom (8.9%)
- ------------------------------------------------------------------------------------------------------------
1,448,200 Argos PLC 15,097,782
706,000 British Airways + 8,087,623
1,130,400 British Petroleum Co. PLC + 12,986,044
107,200 Commerce Bank of Lebanon 144A GDR 1,881,360
1,912,600 Compass Group PLC 21,071,983
1,721,000 Dixons Group PLC 14,130,023
1,055,000 Lonrho PLC 2,384,516
995,000 Molins PLC 10,574,890
146,900 Ramco Energy PLC ADR + 2,368,763
4,422,000 Reuters Holdings PLC ADR 45,526,246
1,785,657 RTZ Corp. PLC 28,351,128
1,317,400 SEMA Group PLC + 25,597,919
2,139,000 Siebe PLC 31,653,162
3,695,426 SmithKline Beecham PLC ADR 59,452,305
2,198,000 Smiths Industries PLC 26,944,717
14 Tate & Lyle PLC 104
12,328,186 Vodafone Group PLC 55,110,234
--------------
361,218,799
United States (24.8%)
- ------------------------------------------------------------------------------------------------------------
431,500 Abbott Laboratories 26,321,500
205,100 Adaptec, Inc. + 7,588,700
124,200 AES Corp. + 8,104,050
82,400 Aetna Inc. 7,508,700
680,000 AFLAC Inc. 29,240,000
143,400 American Express Co. 9,446,475
118,100 American International Group, Inc. 15,175,850
216,000 Apollo Group, Inc. Class A + 5,805,000
109,900 Ascend Communications, Inc. + 5,027,925
131,400 Avon Products, Inc. 8,097,525
240,300 Baker Hughes Inc. 8,290,350
171,800 Barnett Banks, Inc. 8,396,725
39,600 Basic Petroleum International, Ltd. + 1,242,450
163,700 BMC Software, Inc. + 7,080,025
98,900 Boeing Co. 9,754,013
376,600 Bristol-Myers Squibb Co. 24,667,300
289,100 Campbell Soup Co. 14,780,238
253,150 Cardinal Health, Inc. 13,480,238
166,900 Cascade Communications Corp. + 5,257,350
61,000 Cincinnati Bell, Inc. 3,416,000
143,900 Cisco Systems, Inc. + 7,446,825
114,500 Citicorp 12,895,563
80,100 Clorox Co. 10,202,738
687,600 Coca-Cola Co. 43,748,550
276,200 Coca-Cola Enterprises, Inc. 16,675,575
150,400 Compaq Computer Corp. + 12,840,400
204,200 Computer Associates Intl., Inc. 10,618,400
272,700 ConAgra, Inc. 15,714,338
233,900 Consolidated Stores Corp. + 9,356,000
24,200 Dayton Hudson Corp. 1,089,000
198,300 Diebold, Inc. 6,643,050
270,200 Disney (Walt) Productions, Inc. 22,156,400
311,800 EMC Corp. + 11,341,725
247,400 Equifax, Inc. 7,112,750
136,450 Franklin Resources, Inc. 8,067,606
226,300 Gartner Group Inc. Class A + 5,940,375
380,800 General Electric Co. 42,221,200
249,800 Gillette Co. 21,233,000
155,400 Halliburton Co. 10,975,125
94,700 HBO & Co. 5,066,450
651,500 HEALTHSOUTH Corp. + 12,867,125
195,000 Honeywell, Inc. 13,771,875
272,900 Intel Corp. 41,787,813
195,100 Jones Apparel Group, Inc. + 8,145,425
155,900 KLA Instruments Corp. + 6,937,550
235,700 Lilly (Eli) & Co. 20,712,138
213,900 Marriott International, Inc. 11,817,975
352,750 MBNA Corp. 11,640,750
429,600 Merck & Co., Inc. 38,878,800
232,200 Microsoft Corp. + 28,212,300
243,500 Motorola, Inc. 13,940,375
278,600 Nautica Enterprises, Inc. + 6,164,025
246,500 Nike, Inc. 13,865,625
465,400 Omnicare, Inc. 11,344,125
121,000 Oxford Health Plans Inc. + 7,970,875
224,000 Parametric Technology Corp. + 10,136,000
162,000 Paychex, Inc. 7,583,625
204,500 PeopleSoft, Inc. + 8,486,750
762,900 Philip Morris Cos., Inc. 30,039,188
199,000 Praxair, Inc. 10,273,375
220,300 Procter & Gamble Co. 27,702,725
148,200 Quintiles Transnational Corp. + 7,539,675
419,000 Revco D.S., Inc. + 18,226,500
176,500 Rite Aid Corp. 8,119,000
221,800 Safeway, Inc. + 9,897,825
331,500 Sara Lee Corp. 13,923,000
213,800 Sears, Roebuck & Co. 10,262,400
170,500 Sonat, Inc. 9,739,813
44,625 Sun Bancorp, Inc. + 970,594
219,800 SunAmerica, Inc. 10,110,800
269,700 Symbol Technologies, Inc. 8,731,538
178,000 Tellabs, Inc. + 7,097,750
230,400 TJX Cos., Inc. (The) 10,886,400
216,733 Travelers Group Inc. 12,001,590
241,200 U.S. Surgical Corp. 8,261,100
235,100 USA Waste Services, Inc. + 7,699,505
221,600 Walgreen Co. 10,193,600
175,400 Warner-Lambert Co. 17,189,200
--------------
1,013,154,213
Venezuela (--%)
- ------------------------------------------------------------------------------------------------------------
100,000 Venepal 144A GDR + 162,500
--------------
Total Common Stocks (cost $3,380,178,733) $3,876,269,404
PREFERRED STOCKS (0.6%) *
NUMBER OF SHARES VALUE
- ------------------------------------------------------------------------------------------------------------
450,800,000 Banco Bradesco BRC .22 No Par Value (NPV) pfd. (Brazil) $ 3,730,876
6,750,000 Banco Itau S.A. BRC 6.86 NPV pfd. (Brazil) 3,650,193
2,644,357 Centrais Electricas de Santa Catarina S.A. BRC .0191
NPV pfd. (Brazil) 3,730,401
3,100,000 CIA Tecidos Norte de Minas BRC 10.9566
NPV pfd. (Brazil) 1,300,292
237,116,000 Companhia Paranaense de Energia-Copel BRC .48
NPV pfd. (Brazil) 3,690,652
17,600,000 Petroleo Brasileiro S.A. BRC 6.0672 NPV pfd. (Brazil) 3,699,426
24,900,000 Telecomunicacoes de Minas Gerais - Telemig
BRC 4.4379 pfd. (Brazil) 3,966,952
349 Telecomunicacoes do Rio de Janeiro S.A. Telerj BRC
4.3196 NPV pfd. (Brazil) 58
--------------
Total Preferred Stocks (cost $20,125,786) $ 23,768,850
UNITS (0.3%) * (cost $11,138,400)
NUMBER OF UNITS VALUE
- ------------------------------------------------------------------------------------------------------------
7,000,000 Grand Hotel Group $ 10,870,972
CONVERTIBLE BONDS AND NOTES (0.2%) *
PRINCIPAL AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------
$ 2,810,000 Alfa S.A. 144A cv. sub. notes 8s, 2000 (Mexico) $ 3,487,914
1,850,000 Formosa Chemicals & Fibre Corp. 144A cv. unsub.
1 3/4s, 2001 (Taiwan) 1,993,375
2,280,000 Qingling Motors Co., Ltd. 144A cv. bonds
3 1/2s, 2002 (China) 2,337,000
--------------
Total Convertible Bonds and Notes (cost $7,887,060) $ 7,818,289
INVESTMENT COMPANIES (0.1%) *
PRINCIPAL AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------
$104,200 Fleming Russia Securities Fund Ltd. (Russia) + $ 1,771,400
21,800 India Magnum Fund Class A (India) + 981,000
72,000 Taiwan Fund, Inc. (Taiwan) 1,809,000
--------------
Total Investment Companies (cost $3,805,709) $ 4,561,400
SHORT-TERM INVESTMENTS (1.6%) *
PRINCIPAL AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------
$19,230,000 Sheffield Receivables Corp. effective yield of 5.52%,
May 27, 1997 $ 19,153,337
45,561,000 Interest in $492,645,000 joint repurchase agreement
dated April 30, 1997 with Morgan (J.P.) & Co., Inc.
due May 1, 1997 with respect to various U.S. Treasury
obligations--maturity value of $45,567,872 for an
effective yield of 5.43% 45,567,872
--------------
Total Short-Term Investments (cost $64,690,748) $ 64,721,209
- ------------------------------------------------------------------------------------------------------------
Total Investments (cost $3,487,826,436) *** $3,988,010,124
- ------------------------------------------------------------------------------------------------------------
* Percentages indicated are based on net assets of $4,086,814,416.
*** The aggregate identified cost on a tax basis is $3,498,905,242,
resulting in gross unrealized appreciation and depreciation of
$614,979,942 and $125,875,060, respectively, or net unrealized
appreciation of $489,104,882.
+ Non-income-producing security.
144A after the name of a security represents those exempt from
registration under Rule 144A of the Securities Act of 1933. These
securities may be resold in transactions exempt from registration,
normally to qualified institutional buyers.
ADR, ADS, or GDR after the name of a foreign holding stands for
American Depository Receipts, American Depository Shares, or Global
Depository Receipts, respectively, representing ownership of foreign
securities on deposit with a domestic custodian bank.
Diversification by Country at April 30, 1997: (as percentage of
Market Value)
Australia 2.9%
Brazil 1.0
Canada 1.5
Finland 1.1
France 5.7
Germany 4.0
Hong Kong 2.9
Ireland 1.5
Italy 2.1
Japan 17.5
Malaysia 1.6
Mexico 1.1
Netherlands 6.1
Portugal 1.2
Singapore 1.0
Spain 1.3
Sweden 2.3
Switzerland 5.8
United Kingdom 9.1
United States 27.3
Other 3.0
----
Total 100%
====
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------
Forward Currency Contracts to Sell at April 30, 1997
(aggregate face value $352,804,621)
Market Aggregate Face Delivery Unrealized
Value Value Date Appreciation
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------
Deutschemarks 81,505,904 94,513,976 May 97 $ 13,008,072
French Francs 85,945,842 97,147,749 May 97 11,201,907
Japanese Yen 87,109,317 90,486,526 May 97 3,377,209
Japanese Yen 70,263,216 70,656,370 Aug 97 393,154
- ----------------------------------------------------------------------------------------
$ 27,980,342
- ----------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of assets and liabilities
April 30, 1997 (Unaudited)
<S> <C>
Assets
- ---------------------------------------------------------------------------------------------------
Investments in securities, at value
(identified cost $3,487,826,436) (Note 1) $3,988,010,124
- ---------------------------------------------------------------------------------------------------
Cash 502,841
- ---------------------------------------------------------------------------------------------------
Foreign currency 245,627
- ---------------------------------------------------------------------------------------------------
Dividends, interest, and other receivables 14,115,532
- ---------------------------------------------------------------------------------------------------
Receivable for shares of the fund sold 8,471,187
- ---------------------------------------------------------------------------------------------------
Receivable for securities sold 86,186,496
- ---------------------------------------------------------------------------------------------------
Receivable for open forward currency contracts 27,980,342
- ---------------------------------------------------------------------------------------------------
Receivable for closed forward currency contracts 21,116,045
- ---------------------------------------------------------------------------------------------------
Total assets 4,146,628,194
Liabilities
- ---------------------------------------------------------------------------------------------------
Payable for securities purchased 40,873,393
- ---------------------------------------------------------------------------------------------------
Payable for shares of the fund repurchased 7,542,473
- ---------------------------------------------------------------------------------------------------
Payable for compensation of Manager (Note 2) 6,237,110
- ---------------------------------------------------------------------------------------------------
Payable for investor servicing and custodian fees (Note 2) 1,885,487
- ---------------------------------------------------------------------------------------------------
Payable for compensation of Trustees (Note 2) 59,350
- ---------------------------------------------------------------------------------------------------
Payable for administrative services (Note 2) 3,374
- ---------------------------------------------------------------------------------------------------
Payable for distribution fees (Note 2) 1,710,328
- ---------------------------------------------------------------------------------------------------
Payable for closed forward currency contracts 1,030,880
- ---------------------------------------------------------------------------------------------------
Other accrued expenses 471,383
- ---------------------------------------------------------------------------------------------------
Total liabilities 59,813,778
- ---------------------------------------------------------------------------------------------------
Net assets $4,086,814,416
Represented by
- ---------------------------------------------------------------------------------------------------
Paid-in capital (Notes 1 and 4) $3,291,788,349
- ---------------------------------------------------------------------------------------------------
Distributions in excess of net investment income (Note 1) (15,559,064)
- ---------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and foreign
currency transactions (Note 1) 282,863,512
- ---------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments and assets and
liabilities in foreign currencies 527,721,619
- ---------------------------------------------------------------------------------------------------
Total -- Representing net assets applicable to capital shares outstanding $4,086,814,416
Computation of net asset value and offering price
- ---------------------------------------------------------------------------------------------------
Net asset value and redemption price per class A share
($2,451,603,079 divided by 218,215,933 shares) $11.23
- ---------------------------------------------------------------------------------------------------
Offering price per class A share (100/94.25 of $11.23)* $11.92
- ---------------------------------------------------------------------------------------------------
Net asset value and offering price per class B share
($1,510,905,091 divided by 138,414,813 shares)** $10.92
- ---------------------------------------------------------------------------------------------------
Net asset value and redemption price per class M share
($33,701,615 divided by 3,016,226 shares) $11.17
- ---------------------------------------------------------------------------------------------------
Offering price per class M share (100/96.50 of $11.17)* $11.58
- ---------------------------------------------------------------------------------------------------
Net asset value, offering price and redemption price per class Y share
($90,604,631 divided by 7,965,232 shares)
- ---------------------------------------------------------------------------------------------------
* On single retail sales of less than $50,000 or more and
on group sales the offering price is reduced.
** Redemption price per share is equal to net asset vale less any
applicable contingent deferred sales charge.
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of operations
Six months ended April 30, 1997 (Unaudited)
<S> <C>
Investment income:
- --------------------------------------------------------------------------------------------------
Dividends (net of foreign tax of $1,899,512) $ 26,196,286
- --------------------------------------------------------------------------------------------------
Interest 2,735,608
- --------------------------------------------------------------------------------------------------
Total investment income 28,931,894
Expenses:
Compensation of Manager (Note 2) 12,412,433
- --------------------------------------------------------------------------------------------------
Investor servicing and custodian fees (Note 2) 6,267,412
- --------------------------------------------------------------------------------------------------
Compensation of Trustees (Note 2) 85,962
- --------------------------------------------------------------------------------------------------
Administrative services (Note 2) 19,435
- --------------------------------------------------------------------------------------------------
Distribution fees -- Class A (Note 2) 2,894,848
- --------------------------------------------------------------------------------------------------
Distribution fees -- Class B (Note 2) 7,118,941
- --------------------------------------------------------------------------------------------------
Distribution fees -- Class M (Note 2) 109,401
- --------------------------------------------------------------------------------------------------
Reports to shareholders 293,949
- --------------------------------------------------------------------------------------------------
Registration fees 130,638
- --------------------------------------------------------------------------------------------------
Auditing 47,986
- --------------------------------------------------------------------------------------------------
Legal 16,327
- --------------------------------------------------------------------------------------------------
Postage 155,700
- --------------------------------------------------------------------------------------------------
Other 187,196
- --------------------------------------------------------------------------------------------------
Total expenses 29,740,228
- --------------------------------------------------------------------------------------------------
Expense reduction (Note 2) (741,058)
- --------------------------------------------------------------------------------------------------
Net expenses 28,999,170
- --------------------------------------------------------------------------------------------------
Net investment loss (67,276)
- --------------------------------------------------------------------------------------------------
Net realized gain on investments (Notes 1 and 3) 242,188,425
- --------------------------------------------------------------------------------------------------
Net realized gain on foreign currency transactions (Note 1) 53,337,872
- --------------------------------------------------------------------------------------------------
Net unrealized appreciation of assets and liabilities in
foreign currencies during the period 13,039,296
- --------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments during the period 13,285,013
- --------------------------------------------------------------------------------------------------
Net gain on investments 321,850,606
- --------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $321,783,330
- --------------------------------------------------------------------------------------------------
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
April 30 October 31
1997* 1996
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase in net assets
- ----------------------------------------------------------------------------------------------------------------------
Operations:
- ----------------------------------------------------------------------------------------------------------------------
Net investment income (loss) $ (67,276) $ 18,142,868
- ----------------------------------------------------------------------------------------------------------------------
Net realized gain on investments 295,526,297 253,869,045
- ----------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments 26,324,309 180,077,125
- ----------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 321,783,330 452,089,038
Distributions to shareholders:
- ----------------------------------------------------------------------------------------------------------------------
From net investment income
- ----------------------------------------------------------------------------------------------------------------------
Class A (54,577,494) (29,547,833)
- ----------------------------------------------------------------------------------------------------------------------
Class B (25,358,431) (11,187,413)
- ----------------------------------------------------------------------------------------------------------------------
Class M (590,659) (95,055)
- ----------------------------------------------------------------------------------------------------------------------
Class Y (1,800,840) (836,209)
- ----------------------------------------------------------------------------------------------------------------------
From net realized gain on investments
Class A (108,162,646) (68,153,175)
- ----------------------------------------------------------------------------------------------------------------------
Class B (68,080,503) (40,919,727)
- ----------------------------------------------------------------------------------------------------------------------
Class M (1,292,807) (292,366)
- ----------------------------------------------------------------------------------------------------------------------
Class Y (3,260,656) (1,697,504)
- ----------------------------------------------------------------------------------------------------------------------
Increase from capital share transactions (Note 4) 423,595,645 591,315,666
- ----------------------------------------------------------------------------------------------------------------------
Total increase in net assets 482,254,939 890,675,422
Net assets
- ----------------------------------------------------------------------------------------------------------------------
Beginning of period 3,604,559,477 2,713,884,055
- ----------------------------------------------------------------------------------------------------------------------
End of period (including undistributed net investment
income of $15,559,064 and $66,835,636, respectively) $4,086,814,416 $3,604,559,477
- ----------------------------------------------------------------------------------------------------------------------
* 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
Per-share April 30
operating performance (Unaudited) Year ended October 31
- ------------------------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $11.10 $10.13 $9.92 $9.30 $7.25 $7.64
- ------------------------------------------------------------------------------------------------------------------------------------
Investment operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income .01 .09 (b) .09 .02 .07 .10
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments .94 1.47 .43 .77 2.06 (.22)
- ------------------------------------------------------------------------------------------------------------------------------------
Total from
investment operations .95 1.56 .52 .79 2.13 (.12)
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions:
- ------------------------------------------------------------------------------------------------------------------------------------
From net
investment income (.28) (.18) (.01) -- (.07) (.12)
- ------------------------------------------------------------------------------------------------------------------------------------
From net realized gain
on investments (.54) (.41) (.30) (.17) (.01) (.15)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (.82) (.59) (.31) (.17) (.08) (.27)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $11.23 $11.10 $10.13 $9.92 $9.30 $7.25
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
- ------------------------------------------------------------------------------------------------------------------------------------
Total investment return
at net asset value (%)(a) 8.93* 16.10 5.64 8.62 29.62 (1.51)
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $2,451,603 $2,186,426 $1,689,656 $1,507,550 $940,985 $630,764
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(c) .63* 1.27 1.28 1.33 1.39 1.56
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (%) .13* .84 1.05 .83 .85 1.28
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 67.72* 72.88 63.31 17.45 49.53 61.84
- ------------------------------------------------------------------------------------------------------------------------------------
Average commission
rate paid (d) $.0228 $.0298
- ------------------------------------------------------------------------------------------------------------------------------------
+ Commencement of operations.
* Not annualized.
(a) Total investment return assumes dividend reinvestment and does not reflect the effect of sales charges.
(b) Per share net investment income has been determined on the basis of the weighted average number
of shares outstanding during the period.
(c) The ratio of expenses to average net assets for the period ended October 31, 1995, and thereafter,
includes amounts paid through brokerage service and expense offset arrangements. Prior period ratios
exclude these amounts (Note 2).
(d) Average commission rate paid on security trades is presented for fiscal periods beginning on or
after September 1, 1995.
</TABLE>
<TABLE>
<CAPTION>
Financial highlights
(For a share outstanding throughout the period)
CLASS B
- ------------------------------------------------------------------------------------------------------------------------------------
Six months
ended For the period
Per-share April 30 April 27, 1992+
operating performance (Unaudited) Year ended October 31 to Oct. 31
- ------------------------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $10.78 $9.86 $9.74 $9.19 $7.22 $7.50
- ------------------------------------------------------------------------------------------------------------------------------------
Investment operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (.02) .01 (b) .03 .01 .05 .01
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments .90 1.43 .40 .71 1.99 (.29)
- ------------------------------------------------------------------------------------------------------------------------------------
Total from
investment operations .88 1.44 .43 .72 2.04 (.28)
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions:
- ------------------------------------------------------------------------------------------------------------------------------------
From net
investment income (.20) (.11) (.01) -- (.06) --
- ------------------------------------------------------------------------------------------------------------------------------------
From net realized gain
on investments (.54) (.41) (.30) (.17) (.01) --
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (.74) (.52) (.31) (.17) (.07) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $10.92 $10.78 $9.86 $9.74 $9.19 $7.22
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
- ------------------------------------------------------------------------------------------------------------------------------------
Total investment return
at net asset value (%)(a) 8.58* 15.25 4.80 7.95 28.44 (3.73)*
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $1,510,905 $1,327,246 $975,794 $801,443 $233,195 $18,154
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(c) 1.01* 2.02 2.04 2.11 2.09 1.16*
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (%) (.24)* .09 .29 .12 .23 .21*
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 67.72* 72.88 63.31 17.45 49.53 61.84
- ------------------------------------------------------------------------------------------------------------------------------------
Average commission
rate paid (d) $.0228 $.0298
- ------------------------------------------------------------------------------------------------------------------------------------
+ Commencement of operations.
* Not annualized.
(a) Total investment return assumes dividend reinvestment and does not reflect the effect of sales charges.
(b) Per share net investment income has been determined on the basis of the weighted average number
of shares outstanding during the period.
(c) The ratio of expenses to average net assets for the period ended October 31, 1995, and thereafter,
includes amounts paid through brokerage service and expense offset arrangements. Prior period ratios
exclude these amounts (Note 2).
(d) Average commission rate paid on security trades is presented for fiscal periods beginning on or
after September 1, 1995.
</TABLE>
<TABLE>
<CAPTION>
Financial highlights
(For a share outstanding throughout the period)
CLASS M
- ------------------------------------------------------------------------------------------------------------------------------------
Six months
ended For the period
Per-share April 30 Year ended March 1, 1995+
operating performance (Unaudited) Oct. 31 to Oct. 31
- ------------------------------------------------------------------------------------------------------------------------------------
1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value,
beginning of period $11.05 $10.09 $8.86
- ------------------------------------------------------------------------------------------------------------------------------------
Investment operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income .01 .03 (b) .01
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments .90 1.47 1.22
- ------------------------------------------------------------------------------------------------------------------------------------
Total from
investment operations .91 1.50 1.23
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions:
- ------------------------------------------------------------------------------------------------------------------------------------
From net
investment income (.25) (.13) --
- ------------------------------------------------------------------------------------------------------------------------------------
From net realized gain
on investments (.54) (.41) --
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (.79) (.54) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $11.17 $11.05 $10.09
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
- ------------------------------------------------------------------------------------------------------------------------------------
Total investment return
at net asset value (%)(a) 8.62* 15.54 13.88*
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $33,702 $24,179 $5,853
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(c) .88* 1.80 1.23*
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (%) (.11)* .32 .17*
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 67.72* 72.88 63.31
- ------------------------------------------------------------------------------------------------------------------------------------
Average commission
rate paid (d) $.0228 $.0298
- ------------------------------------------------------------------------------------------------------------------------------------
+ Commencement of operations.
* Not annualized.
(a) Total investment return assumes dividend reinvestment and does not reflect the effect of sales charges.
(b) Per share net investment income has been determined on the basis of the weighted average number
of shares outstanding during the period.
(c) The ratio of expenses to average net assets for the period ended October 31, 1995, and thereafter,
includes amounts paid through brokerage service and expense offset arrangements. Prior period ratios
exclude these amounts (Note 2).
(d) Average commission rate paid on security trades is presented for fiscal periods beginning on or
after September 1, 1995.
</TABLE>
<TABLE>
<CAPTION>
Financial highlights
(For a share outstanding throughout the period)
CLASS Y
- ------------------------------------------------------------------------------------------------------------------------------------
Six months
ended For the period
Per-share April 30 June 15, 1994+
operating performance (Unaudited) Year ended Oct. 31 to Oct. 31
- ------------------------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value,
beginning of period $11.24 $10.25 $10.00 $9.46
- ------------------------------------------------------------------------------------------------------------------------------------
Investment operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income .04 .12 (b) .09 .01
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments .94 1.48 .47 .53
- ------------------------------------------------------------------------------------------------------------------------------------
Total from
investment operations .98 1.60 .56 .54
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions:
- ------------------------------------------------------------------------------------------------------------------------------------
From net
investment income (.30) (.20) (.01) --
- ------------------------------------------------------------------------------------------------------------------------------------
From net realized gain
on investments (.54) (.41) (.30) --
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (.84) (.61) (.31) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $11.38 $11.24 $10.25 $10.00
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
- ------------------------------------------------------------------------------------------------------------------------------------
Total investment return
at net asset value (%)(a) 9.17* 16.39 6.00 5.71*
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $90,605 $66,708 $42,582 $29,396
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(c) .51* 1.02 1.06 .37*
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (%) .27* 1.09 1.20 .42*
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 67.72* 72.88 63.31 17.45
- ------------------------------------------------------------------------------------------------------------------------------------
Average commission
rate paid (d) $.0228 $.0298
- ------------------------------------------------------------------------------------------------------------------------------------
+ Commencement of operations.
* Not annualized.
(a) Total investment return assumes dividend reinvestment and does not reflect the effect of sales charges.
(b) Per share net investment income has been determined on the basis of the weighted average number
of shares outstanding during the period.
(c) The ratio of expenses to average net assets for the period ended October 31, 1995, and thereafter,
includes amounts paid through brokerage service and expense offset arrangements. Prior period ratios
exclude these amounts (Note 2).
(d) Average commission rate paid on security trades is presented for fiscal periods beginning on or
after September 1, 1995.
</TABLE>
Notes to financial statements
April 30, 1997 (Unaudited)
Note 1
Significant accounting policies
Putnam Global Growth 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 capital appreciation by investing primarily
in common stocks traded in securities markets located in a number of foreign
countries and in the United States.
The fund offers class A, class B, class M and class Y shares. Class A shares
are sold with a maximum front-end sales charge of 5.75%. Class B shares, which
convert to class A shares after approximately eight years, do not pay a
front-end sales charge but pay a higher ongoing distribution fee than class A
shares, and may be subject to a contingent deferred sales charge, if those
shares are redeemed within six years of purchase. Class M shares are sold with
a maximum front end sales charge of 3.50% and pay an ongoing distribution fee
that is higher than class A shares but lower than class B shares. Class Y
shares, which are sold at net asset value, are generally subject to the same
expenses as class A, class B and class M shares, but do not bear a
distribution fee. Class Y shares are sold to defined contribution plans that
initially invest at least $250 million in a combination of Putnam Funds.
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
that fund were liquidated. In addition, the Trustees declare separate
dividends on each class of shares.
The following is a summary of significant accounting policies 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 Investments for which market quotations are readily
available are stated at market value, which is determined using the last
reported sale price, or, if no sales are reported -- as in the case of some
securities traded over-the-counter -- the last reported bid price. Securities
quoted in foreign currencies are translated into U.S. dollars at the current
exchange rate. Short-term investments having remaining maturities of 60 days
or less are stated at amortized cost which approximates market, and other
investments are stated at fair value following procedures approved by the
Trustees.
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) 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.
D) Security transactions and related investment income Security transactions
are accounted for on the trade date (date the order to buy or sell is
executed). Interest income is recorded on the accrual basis. Discounts on
original issue bonds are accreted according to the effective yield method.
Dividend income is recorded on the ex-dividend date except that certain
dividends from foreign securities are recorded as soon as the fund is informed
of the ex-dividend date.
E) Foreign currency translation The accounting records of the fund are
maintained in U.S. dollars. The market value of foreign securities, currency
holdings, other assets and liabilities are recorded in the books and records
of the fund after translation to U.S. dollars based on the exchange rates on
that day. The cost of each security is determined using historical exchange
rates. Income and withholding taxes are translated at prevailing exchange
rates when accrued or incurred. The fund does not isolate that portion of
realized or unrealized gains or losses resulting from changes in the foreign
exchange rate on investments from fluctuations arising from changes in the
market prices of the securities. Such fluctuations are included with the net
realized and unrealized gain or loss on investments. Net realized gains and
losses on foreign currency transactions represent net exchange gains or losses
on closed forward currency contracts, disposition of foreign currencies and
the difference between the amount of investment income and foreign withholding
taxes recorded on the fund's books and the U.S. dollar equivalent amounts
actually received or paid. Net unrealized gains and losses on foreign currency
transactions arise from changes in the value of open forward currency
contracts and assets and liabilities other than investments at the period end,
resulting from changes in the exchange rate.
F) Forward currency contracts The fund may engage in forward currency
contracts, which are agreements between two parties to buy and sell currencies
at a set price on a future date, to protect against a decline in value
relative to the U.S. dollar of the currencies in which its portfolio
securities are denominated or quoted (or an increase in the value of a
currency in which securities a fund intends to buy are denominated, when a
fund holds cash reserves and short-term investments). The U.S. dollar value of
forward currency contracts is determined using forward currency exchange rates
supplied by a quotation service. The market value of the contract will
fluctuate with changes in currency exchange rates. The contract is "marked to
market" daily and the change in market value is recorded as an unrealized gain
or loss. When the contract is closed, the fund records a realized gain or loss
equal to the difference between the value of the contract at the time it was
opened and the value at the time it was closed. The fund could be exposed to
risk if the value of the currency changes unfavorably, if the counterparties
to the contracts are unable to meet the terms of their contracts or if the
fund is unable to enter into a closing position.
G) 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.
H) Distributions to shareholders Distributions to shareholders from net
investment income are recorded by the fund on the ex-dividend date. Capital
gain distributions, if any, are recorded on the ex-dividend date and paid at
least annually. The amount and character of income and gains to be distributed
are determined in accordance with income tax regulations which may differ from
generally accepted accounting principles. Reclassifications are made to the
fund's capital accounts to reflect income and gains available for distribution
(or available capital loss carryovers) under income tax regulations.
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: 0.80% of the first $500 million of
average net assets, 0.70% of the next $500 million, 0.65% of the next $500
million, 0.60% of the next $5 billion, 0.575% of the next $5 billion, 0.555%
of the next $5 billion, 0.54% of the next $5 billion and 0.53% of any excess
thereafter. Prior to February 20, 1997, any amount over $1.5 billion was based
on a rate of 0.60%.
The fund reimburses Putnam Management for the compensation and related
expenses of certain officers of the fund and their staff who provide
administrative services to the fund. The aggregate amount of all such
reimbursements is determined annually by the Trustees.
Trustees of the fund receive an annual Trustees fee of $4,470 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 "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.
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.
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 April 30, 1997, fund expenses were reduced by
$741,058 under expense offset arrangements with PFTC and brokerage service
arrangements. Investor servicing and custodian fees reported in the Statement
of operations exclude these credits. The fund could have invested a portion of
these assets utilized in connection with the expense offset arrangements in an
income producing asset if it had not entered into such arrangements.
The fund has adopted distribution plans (the "Plans") with respect to its
class A, class B and class M shares pursuant to Rule 12b-1 under the
Investment Company Act of 1940. The purpose of the Plans is to compensate
Putnam Mutual Funds Corp., a wholly-owned subsidiary of Putnam Investments
Inc., for services provided and expenses incurred by it in distributing shares
of the fund. The Plans provide for payments by the fund to Putnam Mutual Funds
Corp. at an annual rate up to 0.35%, 1.00% and 1.00% of the average net assets
attributable to class A, class B and class M shares, respectively. The
Trustees have approved payment by the fund at an annual rate of 0.25%, 1.00%
and 0.75% of the average net assets attributable to class A, class B and class
M shares, respectively.
For the six months ended April 30, 1997, Putnam Mutual Funds Corp., acting as
underwriter received net commissions of $551,536 and $14,405 from the sale of
class A and class M shares, respectively and received $868,922 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 April 30, 1997, Putnam Mutual Funds Corp., acting as
underwriter received $22,360 on class A redemptions.
Note 3
Purchases and sales of securities
During the six months ended April 30, 1997, purchases and sales of investment
securities other than short-term investments aggregated $2,749,366,092 and
$2,602,804,556, respectively. There were no purchases and sales of U.S.
government obligations. In determining the net gain or loss on securities
sold, the cost of securities has been determined on the identified cost basis.
Note 4
Capital shares
At April 30, 1997, there was an unlimited number of shares of beneficial
interest authorized. Transactions in capital shares were as follows:
Six months ended
April 30, 1997
- ------------------------------------------------------------
Class A Shares Amount
- ------------------------------------------------------------
Shares sold 51,088,702 $ 565,964,895
- ------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 14,408,756 154,029,605
- ------------------------------------------------------------
65,497,458 719,994,500
Shares
repurchased (44,195,814) (489,793,240)
- ------------------------------------------------------------
Net increase 21,301,644 $ 230,201,260
- ------------------------------------------------------------
Year ended
October 31, 1996
- ------------------------------------------------------------
Class A Shares Amount
- ------------------------------------------------------------
Shares sold 74,479,884 $ 786,801,972
- ------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 9,384,293 91,684,535
- ------------------------------------------------------------
83,864,177 878,486,507
Shares
repurchased (53,754,835) (567,550,801)
- ------------------------------------------------------------
Net increase 30,109,342 $ 310,935,706
- ------------------------------------------------------------
Six months ended
April 30, 1997
- ------------------------------------------------------------
Class B Shares Amount
- ------------------------------------------------------------
Shares sold 18,708,983 $ 201,854,085
- ------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 8,389,249 87,332,064
- ------------------------------------------------------------
27,098,232 289,186,149
Shares
repurchased (11,811,092) (127,350,166)
- ------------------------------------------------------------
Net increase 15,287,140 $ 161,835,983
- ------------------------------------------------------------
Year ended
October 31, 1996
- ------------------------------------------------------------
Class B Shares Amount
- ------------------------------------------------------------
Shares sold 38,966,921 $ 400,645,801
- ------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 5,083,057 48,543,206
- ------------------------------------------------------------
44,049,978 449,189,007
Shares
repurchased (19,905,910) (204,642,212)
- ------------------------------------------------------------
Net increase 24,144,068 $ 244,546,795
- ------------------------------------------------------------
Six months ended
April 30, 1997
- ------------------------------------------------------------
Class M Shares Amount
- ------------------------------------------------------------
Shares sold 1,163,306 $ 12,883,518
- ------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 168,874 1,798,504
- ------------------------------------------------------------
1,332,180 14,682,022
Shares
repurchased (504,374) (5,576,649)
- ------------------------------------------------------------
Net increase 827,806 $ 9,105,373
- ------------------------------------------------------------
Year ended
October 31, 1996
- ------------------------------------------------------------
Class M Shares Amount
- ------------------------------------------------------------
Shares sold 1,976,000 $ 20,965,783
- ------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 37,518 366,551
- ------------------------------------------------------------
2,013,518 21,332,334
Shares
repurchased (404,965) (4,274,542)
- ------------------------------------------------------------
Net increase 1,608,553 $ 17,057,792
- ------------------------------------------------------------
Six months ended
April 30, 1997
- ------------------------------------------------------------
Class Y Shares Amount
- ------------------------------------------------------------
Shares sold 2,887,485 $ 32,294,938
- ------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 470,441 5,085,473
- ------------------------------------------------------------
3,357,926 37,380,411
Shares
repurchased (1,325,468) (14,927,382)
- ------------------------------------------------------------
Net increase 2,032,458 $ 22,453,029
- ------------------------------------------------------------
Year ended
October 31, 1996
- ------------------------------------------------------------
Class Y Shares Amount
- ------------------------------------------------------------
Shares sold 3,135,536 $ 33,518,710
- ------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 256,720 2,533,713
- ------------------------------------------------------------
3,392,256 36,052,423
Shares
repurchased (1,614,376) (17,277,050)
- ------------------------------------------------------------
Net increase 1,777,880 $ 18,775,373
- ------------------------------------------------------------
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
Elizabeth T. Kennan
Lawrence J. Lasser
Robert E. Patterson
Donald S. Perkins
George Putnam, III
A.J.C. Smith
W. Nicholas Thorndike
OFFICERS
George Putnam
President
Charles E. Porter
Executive Vice President
Patricia C. Flaherty
Senior Vice President
John D. Hughes
Senior Vice President and Treasurer
Lawrence J. Lasser
Vice President
Gordon H. Silver
Vice President
Ian C. Ferguson
Vice President
Brett C. Browchuk
Vice President
Robert J. Swift
Vice President and Fund Manager
Anthony W. Regan
Vice President and Fund Manager
Ami Kuan Danoff
Vice President and Fund Manager
Kelly A. Morgan
Vice President and Fund Manager
Carol McMullen
Vice President and Fund Manager
C. Kim Goodwin
Vice President and Fund Manager
Thomas Haslett
Vice President and Fund Manager
William N. Shiebler
Vice President
John R. Verani
Vice President
Paul M. O'Neil
Vice President
Beverly Marcus
Clerk and Assistant Treasurer
This report is for the information of shareholders of Putnam Global Growth
Fund. It may also be used as sales literature when preceded or accompanied by
the current prospectus, which gives details of sales charges, investment
objectives, and operating policies of the fund, and the most recent copy of
Putnam's Quarterly Performance Summary. For more information, or to request a
prospectus, call toll free: 1-800-225-1581. You can also learn more at Putnam
Investments' website: http://www.putnaminv.com.
Shares of mutual funds are not deposits or obligations of, or guaranteed or
endorsed by, any financial institution, are not insured by the Federal Deposit
Insurance Corporation (FDIC), the Federal Reserve Board or any other agency,
and involve risk, including the possible loss of principal amount invested.
[LOGO OMITTED]
PUTNAM INVESTMENTS
The Putnam Funds
One Post Office Square
Boston, Massachusetts 02109
- --------------------
Bulk Rate
U.S. Postage
PAID
Putnam
Investments
- --------------------
33892-005/882/907 6/97
PUTNAM INVESTMENTS [SCALE LOGO OMITTED]
- ------------------------------------------------------------------------
Putnam Global Growth Fund
Supplement to Semiannual Report dated 4/30/97
The following information has been prepared to provide class Y shareholders
with a performance overview specific to their holdings. Class Y shares are
offered exclusively to defined contribution plans investing $250 million or
more in one or more of Putnam's funds or private accounts. Performance of
class Y shares, which incur neither a front-end load, distribution fee, nor
contingent deferred sales charge, will differ from performance of class A, B,
and M shares, which are discussed more extensively in the semiannual report.
SEMIANNUAL RESULTS AT A GLANCE
- ------------------------------------------------------------------------
Total return: NAV
Six months ended 4/30/97 9.17%
One year ended 4/30/97 12.68%
Life of class (since 6/15/94) 42.37%
Annual average 13.05%
- ------------------------------------------------------------------------
Share value: NAV
10/31/96 $11.24
4/30/97 $11.38
- ------------------------------------------------------------------------
Distributions (number) 1
Income $0.301
Capital gains
Long-term $0.249
Short-term $0.296
Total $0.846
- ------------------------------------------------------------------------
Please note that past performance does not indicate future results.
Investment return and principal value will fluctuate so your shares, when
redeemed, may be worth more or less than their original cost. See full report
for information on comparative benchmarks. If you have questions, please
consult your fund prospectus or call Putnam toll free at 1-800-752-9894.
