PUTNAM
INTERNATIONAL
NEW
OPPORTUNITIES
FUND
SEMIANNUAL REPORT
March 31, 1995
[BALANCED SCALES LOGO]
BOSTON * LONDON * TOKYO<PAGE>
FROM THE CHAIRMAN
Dear Shareholder:
We are pleased to report that Putnam International New
Opportunities Fund came out of the starting gate strongly,
posting a 5.29% total return at net asset value from the fund s
inception on January 3, 1995, through March 31, 1995. The fund
completed its first reporting period by surpassing two Morgan
Stanley Capital International indexes the fund s comparative
performance benchmarks by wide margins: the Emerging Markets
Index, at -11.31%, and the broader Europe, Australia, and Far
East (EAFE) Index, at 1.86%.
> SEEKING EXCEPTIONAL GROWTH OPPORTUNITIES OUTSIDE THE
UNITED STATES
The fund seeks long-term capital appreciation by investing in
foreign companies that exhibit very high growth potential. The
fund generally invests a substantial portion of its assets in the
emerging markets, but also invests in emerging growth companies
in established markets. Both emerging markets and emerging growth
companies represent volatile areas for investment, but Fund
Manager Justin Scott believes that, over the long term, they
offer the potential for significantly higher returns than more
mature companies and traditional markets.
Because the fund is not limited geographically to investing only
in emerging markets, it has an advantage over pure emerging
markets funds. In more-established markets, there are emerging
growth sectors with extremely attractive investment opportunities
that are comparable to those in the emerging markets, but are not
subject to the same level of political and economic risk. Justin,
therefore, believes that diversifying investments among growth
<PAGE>
stocks in both established and emerging markets may help to
reduce risk without compromising potential returns, although
there can be no assurance of this.
Moreover, Justin anticipates that there will be times when one of
these two categories will be undervalued relative to the other.
By investing in both categories, he will be able to capitalize on
the perceived differences in relative value by overweighting the
portfolio in favor of the undervalued category.
At period s end, 42.6% of the portfolio s assets were invested in
emerging markets; 40.9% was invested in emerging growth companies
in established markets; and 16.5% was held in cash and cash
equivalents. Justin s current investment strategy allows the
emerging markets allocation to range from as high as 80% to as
low as 30% of the portfolio. His long-term goal is to keep an
average of 60% of the fund s assets invested in emerging markets
and 40% invested in emerging companies in established markets.
The fund s strategy is to balance the overall allocation so it
can benefit from either category s potential returns without
assuming the higher risk associated with concentrating the
portfolio in only one of the categories.
> SIMILARITIES WITH PUTNAM NEW OPPORTUNITIES FUND
Stylistically, the fund is similar to Putnam New Opportunities
Fund. Both seek to identify industry sectors with very strong
fundamental growth prospects. Both Justin and Putnam New
Opportunities Fund Manager Daniel Miller believe that genuine
growth stocks are predominant in fundamental growth sectors.
Therefore, both funds concentrate their investments in sectors
that are believed to have the greatest growth potential.
<PAGE>
Putnam Management recognizes that during different stages of
economic development, different industry sectors experience
differing growth rates. For example, in less-developed economies,
the construction and infrastructure-related sectors are often
growth sectors. However, in mature economies, the
advanced-technology and media sectors are more likely to be
high-growth sectors while construction is a relatively low-growth
sector.
Given this disparity among economic and industrial growth rates,
Putnam International New Opportunities Fund s multicountry sector
selections reflect three distinct stages of economic development:
less-developed economies, such as Pakistan s; economies that have
embarked on a period of self-sustained growth, such as
Malaysia s; and mature economies, such as the United Kingdom s.
Putnam identifies the appropriate growth sectors within each of
these three stages of economic development. Viewed from this
perspective, the fund s equity holdings, as of March 31, 1995,
were distributed as follows: 14.6% in less-developed economies,
58.8% in growth economies, and 26.6% in mature economies.
> AN AGGRESSIVE-GROWTH STRATEGY FOR LONG-TERM INVESTORS
While three months is an insufficient time period in which to
evaluate the merits of long-term growth investing, we are,
nonetheless, pleased that the fund is off to a successful start.
Any investment approach has inherent risks, but we believe that,
as Justin follows the methodology outlined above, the fund has
the potential to provide long-term investors with ample rewards.
<PAGE>
We would also like to take this opportunity to thank you for
participating in the incubated funds program. By providing a new
fund with an incubation period, the program enables us to
establish a track record and to critically evaluate the results
of its particular investment approach. This would not be possible
without your support.
Respectfully yours,
/S/ George Putnam
George Putnam
April 19, 1995
The views expressed throughout this report are exclusively those
of Putnam Management. They are not meant as investment advice.
Although the described holdings were viewed
favorably as of March 31, 1995, there is no guarantee the fund
will continue to hold these securities in the future.
International investing is subject to certain risks such as
currency fluctuations and political developments. Investments in
emerging-growth companies may be subject to greater price
volatility.<PAGE>
PERFORMANCE SUMMARY
This section provides, at a glance, information about your fund s
performance. Total return shows how the value of the fund s
shares changed over time, assuming you held the shares through
the entire period and reinvested all distributions back into the
fund. For comparative purposes, we show how the fund performed
relative to appropriate indexes and benchmarks.
TOTAL RETURN FOR PERIOD ENDED 3/31/95
MSCI MSCI
EAFE EMERGING MKTS.
NAV POP INDEX INDEX
LIFE OF FUND
(since 1/6/95) 5.29% -0.78% 1.86% -11.31%
Fund performance data do not take into account any adjustment for
taxes payable on reinvested distributions. POP assumes maximum
5.75% sales charge. Performance data represent past results and an
expense limitation currently in effect. Without the expense
limitation, the fund s total return would have been lower.
Investment returns and net asset value will fluctuate so that an
investor s shares, when sold, may be worth more or less than their
original cost. The short-term results of a relatively new fund are
not necessarily indicative of its long-term prospects.
<PAGE>
TERMS AND DEFINITIONS
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.
COMPARATIVE BENCHMARKS
THE EUROPE, AUSTRALIA AND THE FAR EAST (EAFE) component of the
Morgan Stanley Capital International World Index is an unmanaged
list of international equity securities, excluding U.S., with all
values expressed in U.S. dollars. The Europe component of the
World Index is an unmanaged list of 639 companies representing 13
European countries, with values expressed in
U.S. dollars.
MORGAN STANLEY CAPITAL INTERNATIONAL EMERGING MARKETS INDEX is an
unmanaged list of 1,100 securities representing 20 emerging
markets, with values expressed in U.S. dollars.
Both indexes assume reinvestment of all distributions and do not
take into account brokerage commissions or other costs. The fund s
portfolio contains securities that differ from those in the
indexes.<PAGE>
PORTFOLIO OF INVESTMENTS OWNED
March 31, 1995 (Unaudited)
Common Stocks (83.5%)*
Number of Shares Value
Automotive (7.2%)
2,000 Ashok Leyland Ltd. GDR
(India) 144A $ 28,000
500 Autoliv AB (Sweden) 18,699
4,000 Edaran Otomobil Nasional
Berhad (Malaysia) 29,266
18,500 Pt Astra International Foreign
Registered (Indonesia) 26,876
5,200 Swedish Motor Corp.
(Thailand) 23,871
126,712
Basic Industrial Products(1.4%)
46,000 Chen Hsong Hldgs.
(Hong Kong) 25,139
Building and Construction(6.5%)
1,000 American Standard
Sanitaryware (Thailand) Ltd. $ 16,575
2,700 India Cements Ltd. GDR
(India) 24,975
6,000 Westmont Berhad Co.
(Malaysia) 30,136
8,000 Jurong Engineering Ltd.
(Singapore) 44,041
115,727
Business Services(1.5%)
450 Randstad Hldgs. (Netherlands) 26,093
Chemicals(2.4%)
2,500 Gujarat Narmada Valley GDR
(India) 144A 25,626
1,200 IPLC Corp GDR (India) 17,400
43,026
Computer Services and Software(1.4%)
620 Getronics N.V. (Netherlands) 24,762
Consumer Non Durables(2.9%)
700 Luxottica Group (Italy) ADR 25,200
5,000 Sampoerna Ind. (Indonesia) 26,486
51,686
Consumer Services(3.0%)
1,800 East India Hotels Ltd. GDR
(India) 27,000
3,000 Genting Berhad Co. (Malaysia) 27,051
54,051
<PAGE>
Common Stocks (continued)
Number of Shares Value
Electronics and Electrical Equipment(17.7%)
300 Austria Mikro Systeme
International AG (Austria) $ 28,004
16,000 Clipsal Industries Ltd.
(Singapore) 35,520
5,000 Hana Microelectronics Co.
Ltd. (Thailand) 25,804
11,000 Johnson Electric Holdings
Ltd. (Hong Kong) 25,894
8,000 Leader Universal (Malaysia) 27,845
200 Mabuchi Motor (Japan) 13,924
1,000 Murata Manufacturing
Co. Ltd. (Japan) 40,226
8,000 Nylex (Malaysia) 18,984
1,300 SGS-Thomson Microelec.
(France) ADR 38,679
12,000 Venture Manufacturing
Ltd. (Singapore) 31,116
1,500 Yageo Corp. ADR
(Taiwan) 27,752
313,748
Engineering (1.4%)
17,000 Varitronix International Ltd.
(Hong Kong) 25,066
Food and Beverages(1.6%)
1,000 South African Breweries
Ltd.(South Africa) 27,945
Health Care(1.1%)
500 Hogy Medical Co. (Japan) 20,191
Insurance and Finance(9.8%)
7,000 Guoco Group Ltd.
(Hong Kong) 25,984
8,000 Industrial Finance Corp.
of Thailand(The)(Thailand) 16,250
22,000 MAA Assurances SA (Malaysia) 72,215
850 Mapfre Vida Seguros (Spain) 36,165
38,000 National Mutual Asia
Ltd. (Hong Kong) 23,468
174,082
Metals and Mining(1.6%)
21,840 South African Iron & Steel
Industrial Corp.
Ltd.(South Africa) 27,647<PAGE>
Common Stocks (continued)
Number of Shares Value
Oil and Gas(3.4%)
7,670 Naviera Perez Co. (Argentina) $ 28,380
3,300 Sasol Ltd.(South Africa) 31,584
59,964
Pharmaceuticals(4.3%)
1,350 Astra AB (Sweden) 35,900
55 Schering AG (Germany) 40,585
76,485
Publishing and Media (0.9%)
200 Wolters Kluwer N.V.
(Netherlands) 15,417
Retail(2.7%)
11,000 Courts Ltd. (Singapore) 16,522
8,500 Dixons Group PLC
(United Kingdom) 31,671
48,193
Shipping(3.0%)
18,000 Osprey Maritime Ltd.
(Singapore) 54,000
Telecommunications (1.5%)
9,000 Technology Resources
(Malaysia) 26,208
Utilities(8.1%)
2,400 Capex (Argentina) 27,000
12,000 Consolidated Electric
Power (Asia) 25,198
150 Pakistan Telecommunications
Corp. GDS (Pakistan) 144A 13,500
400 Philippine Long Distance
(Philippines) ADR 24,200
900 Telebras Co. (Brazil) ADR 23,850
700 Telecom Argentina S.A.
(Argentina) ADR 30,275
144,023
Total Common Stocks
(cost $1,405,672) $ 1,480,165
Corporate Bonds and Notes
(1.5%)*(cost$ 26,945)
Principal Amount Value
$17,000 United Microelectronics
Corp. Ltd.(Taiwan) $ 26,945
Short-Term Investments (31.9%)*
Principal Amount Value
500,000 Federal Home Loan
Bank 6s, 4/3/95 $ 499,833
65,000 Federal Home Loan
Mortgage Association
5.94s, 4/25/95 64,743
Total Short-Term Investments
(cost $564,576) $ 564,576
Total Investments
(cost $1,997,193)*** $ 2,071,686
* Percentages indicated are based on total net assets of
$1,772,192, which corresponds to a net asset value per share
of $8.95.
Non-income-producing security.
*** The aggregate identified cost on a tax basis
is $1,997,193, resulting in gross unrealized appreciation and
depreciation of $96,226 and $21,733, respectively, or net
unrealized appreciation of $74,493.
ADR, ADS, GDR or GDS after the name of a foreign holding
stands for American Depository Receipt, American Depository
Shares, Global Depository Receipt or Global Depository
Shares, respectively, representing ownership of foreign
securities on deposit with a custodian bank.
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.
The accompanying notes are an integral part of these financial
statements.<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1995 (Unaudited)
ASSETS
Investments in securities, at value
(identified cost $1,997,193) (Note 1)
$2,071,686
Cash 41,388
Dividends and other receivables 2,128
Receivable from Manager (Note 3)
2,776
Receivable for shares of the fund sold 100
Unamortized organization expense (Note 1) 6,115
TOTAL ASSETS 2,124,193
LIABILITIES
Payable for securities purchased 343,490
Payable for organization expenses (Note 1) 6,425
Payable for compensation of Trustees (Note 3) 24
Other accrued expenses 2,062
TOTAL LIABILITIES 352,001
NET ASSETS $1,772,192
REPRESENTED BY
Paid-in capital (Notes 2, 5) $1,684,070
Undistributed net investment income 12,714
Accumulated net realized gain
on investment transactions 893
Net unrealized appreciation of investments and
foreign currency translation 74,515
TOTAL REPRESENTING NET ASSETS APPLICABLE TO
CAPITAL SHARES OUTSTANDING $1,772,192
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE
Net asset value and redemption price per share
($1,772,192 divided by 197,923 shares) $8.95
Offering price per share (100/94.25 of $8.95)* $9.50
* On single retail sales of less than $50,000. On sales of
$50,000 or more and on group sales the offering price is reduced.
The accompanying notes are an integral part of these financial
statements.<PAGE>
STATEMENT OF OPERATIONS
For the period January 6, 1995 (commencement of operations)
to March 31, 1995 (Unaudited)
INVESTMENT INCOME
Dividends (net foreign tax of $339) $ 2,104
Interest 10,229
TOTAL INVESTMENT INCOME 12,333
EXPENSES:
Compensation of Manager (Note 3) 4,663
Investor servicing, custodian fees
and other expenses (Note 3) 1,206
Compensation of Trustees (Note 3) 24
Reports to shareholders 72
Legal 723
Postage 12
Registration fees 38
Administrative services (Note 3) 10
Amortization of organization expense (Note 1) 310
Fees waived by Manager (Note 3) (7,439)
TOTAL EXPENSES (381)
NET INVESTMENT INCOME 12,714
Net realized gain on investments (Note 4) 875
Net realized gain on foreign currency translation 18
Net unrealized appreciation of investments
during the period 74,493
Net unrealized appreciation of foreign currency translations
during the period 22
NET GAIN IN INVESTMENT TRANSACTIONS 75,408
NET INCREASE IN NET ASSETS RESULTING FROM OPERATION $88,122
The accompanying notes are an integral part of these financial
statements.<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
For the period
January 6, 1995
(commencement
of operations) to
March 31*
1995
INCREASE IN NET ASSETS
Operations:
Net investment income $ 12,714
Net realized gain on investments and
foreign currency translation 893
Net unrealized appreciation of investments
and foreign currency translation 74,515
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS 88,122
Increase from capital share transactions (Note 5) 184,070
Total increase in net assets
272,192
NET ASSETS:
Beginning of period $1,500,000
End of period (including undistributed
net investment income of $12,714) $1,772,192
* See Note 2.
Unaudited.
The accompanying notes are an integral part of these financial
statements.<PAGE>
Financial highlights
(For a share outstanding throughout the period)
January 6, 1995
(commencement
of operations) to
March 31, 1995*
Net asset value, beginning of period $8.50
Investment operations
Net investment income .09(a)
Net realized and unrealized
gain on investments .36
Total from investment operations .45
Net asset value, end of period $8.95
Total investment return at
net asset value (%)(b) 5.29(c)
Net assets, end of period (in thousands)
$1,772
Ratio of expenses to average net assets (%) (a)
Ratio of net investment income
to average net assets (%) .72(a)(c)
Portfolio turnover (%) 2.56(c)
* Unaudited.
Per share net investment income has been determined on the
basis of the weighted average number of shares outstanding during
the period.
(a) Reflects an expense limitation in effect during the period
(See Note 3). As a result of such limitation, expenses for the
fund reflect a reduction of $0.02 per share.
(b) Total investment return assumes dividend reinvestment and does
not reflect the effects of
sales charges.
(c) Not annualized.<PAGE>
NOTES TO FINANCIAL STATEMENTS
March 31, 1995 (Unaudited)
NOTE 1
SIGNIFICANT ACCOUNTING POLICIES
The fund is a series of Putnam Investment Funds (the Trust ) which
is registered under the Investment Company Act of 1940, as
amended, as a diversified, open-end management investment company.
The objective of the fund is to seek long-term capital
appreciation by investing primarily in common stocks that offer
potential for capital appreciation.
The following is a summary of significant accounting policies
followed by the fund in the preparation of its financial
statements. The policies are in conformity with generally accepted
accounting principles.
A) SECURITY VALUATION Investments for which market quotations are
readily available are stated at market value, which is determined
using the last reported sale price, or, if no sales are
reported as in the case of some securities traded
over-the-counter-the last reported bid price, except that certain
U.S. government obligations are stated at the mean between the bid
and asked prices. Market quotations are not considered to be
readily available for long term corporate bonds and notes; such
investments are stated at fair market value on the basis of
valuations furnished by a pricing service, approved by the
Trustees. Short-term investments having remaining maturities of 60
days or less are stated at amortized cost, which approximates
market value, and other investments are stated at fair market
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 managed by
Putnam Investment Management, Inc. ( Putnam Management ), the
fund s Manager, a wholly-owned subsidiary of Putnam Investments,
Inc., and certain other accounts. These balances may be invested
in one or more repurchase agreements and/or short-term money
market instruments.
C) REPURCHASE AGREEMENTS The fund, or any joint trading account,
through its custodian, receives delivery of the underlying
securities, the market value of which at the time of purchase is
required to be in an amount at least equal to the resale price,
including accrued interest. The fund s Manager is responsible for
determining that the value of these underlying securities is at
all times at least equal to the resale price, including accrued
interest.
D) SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME Security
transactions are accounted for on the trade date (date the order
to buy or sell is executed). Interest income is recorded on the
accrual basis and dividend income is recorded on the ex-dividend
date, except that certain dividends from foreign securities are
recorded as soon as the fund is informed of the ex-dividend date.
E) FEDERAL TAXES It is the policy of the fund to distribute all of
its income within the prescribed time and otherwise comply with
the provisions of the Internal Revenue Code applicable to
regulated investment companies. It is also the intention of the
fund to distribute an amount sufficient to avoid imposition of any
excise tax under Section 4982 of the Internal Revenue Code of
1986. Therefore, no provision has been made for federal taxes on
income, capital gains or unrealized appreciation on securities
held and excise tax on income and capital gains.
F) DISTRIBUTIONS TO SHAREHOLDERS Distributions to shareholders
will be recorded by the fund on the ex-dividend date. The fund
will distribute any net investment income at least quarterly and
any net realized gains at least annually.
G) EXPENSES OF THE TRUST Expenses directly charged or
attributable to the fund will be paid from the assets of the fund.
Generally, expenses of the Trust will be allocated and charged to
the assets of each fund on a basis that the Trustees deem fair and
equitable, which may be based on the relative assets of each fund
or the nature of the services performed and relative applicability
to each fund.
H) UNAMORTIZED ORGANIZATION EXPENSES Expenses incurred by the
fund in connection with its organization, its registration with
the Securities and Exchange Commission and with various states and
the initial public offering of its shares aggregated $ 6,425.
These expenses are being amortized on a straight line basis over a
five-year period.
NOTE 2
INITIAL CAPITALIZATION
AND OFFERING PRICE
OF SHARES
The fund was established as a Massachusetts business trust under
the laws of Massachusetts on October 31, 1994.
During the period October 31, 1994 to January 6, 1995, the fund
had no operations other than those related to organizational
matters, including the initial capital contribution of $20,000 and
the issuance of 2,353 shares to Putnam Mutual Funds Corp., a
wholly-owned subsidiary of Putnam Investments, Inc. On January 3,
1995, Putnam Mutual Funds Corp. made a subsequent capital
contribution of $1,480,000 and received 174,118 shares. There were
no additional transactions until regular investment operations
commenced on January 6, 1995.
At March 31, 1995, Putnam Investments Management, Inc. owned
176,471 shares of the fund 89.2% of shares outstanding, valued at
$1,579,415.
NOTE 3
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 for the quarter. Such fee is based on the
following annual rates: 1.20% of the first $500 million of average
net assets, 1.10% of the next $500 million, 1.05% of the next $500
million, 1.00% of the next $5 billion, 0.975% of the next $5
billion, 0.955% of the next $5 billion, 0.94% of the next $5
billion, and 0.93% thereafter.
Through December 31, 1995, the fund s manager has agreed to limit
the fund s expenses to the extent that expenses (exclusive of
brokerage, interest, taxes, deferred organizational and
extraordinary expenses and distribution fees) exceed an annual
rate of 1.15% of the fund s average net assets.
The fund also reimburses the Manager for the compensation and
related expenses of certain officers of the fund and their staff
who provide administrative services to the fund. The aggregate
amount of all such reimbursements is determined annually by the
Trustees.
Trustees of the fund receive an annual Trustee s fee of $100 and an
additional fee for each Trustees meeting attended. Trustees who
are not interested persons of the Manager and who serve on
committees of the Trustees receive additional fees for attendance
at certain committee meetings.
Custodial functions for the fund s assets are provided by Putnam
Fiduciary Trust Company (PFC), a subsidiary of Putnam Investments,
Inc. Investor servicing agent functions are provided by Putnam
Investor Services, a division of PFC.
Investor servicing and custodian fees reported in the Statement of
operations for the period January 6, 1995 (commencement of
operations) to March 31, 1995 have been reduced by credits allowed
by PFC.
The fund has adopted a distribution plan with pursuant to Rule
12b-1 under the Investment Company Act of 1940, although the fund
is not currently making any payments under the plan. The purpose
of the plan is to compensate Putnam Mutual Funds Corp., a
wholly-owned subsidiary of Putnam Investments, Inc., for services
provided and expenses incurred by it in distributing shares of the
fund. The Trustees have approved payment by the fund to Putnam
Mutual Funds Corp. at an annual rate of up to 0.35% of the fund s
average net assets.
During the period January 6, 1995 (commencement of operations) to
March 31, 1995, Putnam Mutual Funds Corp., acting as the
underwriter, received no net commissions from the sale of shares
of the fund.
NOTE 4
PURCHASES AND
SALES OF SECURITIES
During the period January 6, 1995 (commencement of operations) to
March 31, 1995, purchases and sales of investment securities other
than short-term investments aggregated $1,502,588 and $70,845
respectively. In determining the net gain or loss on securities
sold, the cost of securities has been determined on the identified
cost basis.
NOTE 5
CAPITAL SHARES
For the period January 6, 1995 (commencement of operations) to
March 31, 1995 there was an unlimited number of shares of
beneficial interest authorized. Transactions in capital shares
were as follows:
January 6, 1995
(commencement
of operations) to
March 31, 1995
Shares Amount
Shares sold 21,642 $185,698
Shares repurchased (190) (1,628)
Net increase 21,452 $184,070
<PAGE>
FUND INFORMATION
INVESTMENT
MANAGER
Putnam Investment
Management, Inc.
One Post Office Square
Boston, MA 02109
MARKETING SERVICES
Putnam Mutual Funds Corp.
One Post Office Square
Boston, MA 02109
CUSTODIAN
Putnam Fiduciary Trust
Company
LEGAL COUNSEL
Ropes & Gray
TRUSTEES
George Putnam, Chairman
William F. Pounds, Vice Chairman
Jameson Adkins Baxter
Hans H. Estin
John A. Hill
Elizabeth T. Kennan
Lawrence J. Lasser
Robert E. Patterson
Donald S. Perkins
George Putnam, III
A.J.C. Smith
W. Nicholas Thorndike
OFFICERS
George Putnam
President
Charles E. Porter
Executive Vice President
Patricia C. Flaherty
Senior Vice President
Lawrence J. Lasser
Vice President
Gordon H. Silver
Vice President
Peter Carman
Vice President
Justin Scott
Vice President and Fund Manager
William N. Shiebler
Vice President
John R. Verani
Vice President
Paul M. O Neil
Vice President
John D. Hughes
Vice President and Treasurer
Beverly Marcus
Clerk and Assistant Treasurer
This report is for the information of shareholders of Putnam
International New Opportunities 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.
For more information or to request a prospectus, call toll free
1-800-225-1581.
