(logo)
Putnam
Vista
Fund
Semiannual
Report
(artwork)
January 31, 1994
For investors seeking capital appreciation through common stocks
selected for above-average growth potential
Contents
2 How your fund performed
3 From the Chairman
4 Report from Putnam Management
Semiannual Report
6 Portfolio of investments owned
9 Financial statements
18 Fund performance supplement
19 Your Trustees
A member
of the Putnam
Family of Funds
<PAGE>
How your
fund performed
For periods ended January 31, 1994
Total return* Fund S&P(R) S&P
Class A Class B 500 Midcap
NAV POP NAV CDSC Index Index
6 months 11.45% 4.98% 10.87% 5.87% 8.94% 10.55%
1 year 16.76 10.02 -- -- 12.79 15.16
5 years 110.97 98.89 -- -- 89.75 135.82
annualized 16.10 14.74 -- -- 13.67 18.72
10 years 286.27 264.34 -- -- 316.74 389.51
annualized 14.47 13.80 -- -- 15.34 17.21
Life-of-class+
(class B shares) -- -- 16.91 11.91 11.64 16.80
Share data Class A Class B
NAV POP NAV
July 31, 1993 $7.47 $7.93 $7.46
January 31, 1994 $7.69 $8.16 $7.65
Distributions Capital gains
6 months ended Investment Short- Long-
January 31, 1994 Number income term term Total
Class A 1 $0.021 $0.208 $0.374 $0.603
Class B 1 $0.009 $0.208 $0.374 $0.591
Total return at end of most recent calendar quarter
Periods ended December 31, 1993
Class A Class B
NAV POP NAV CDSC
1 year 17.45% 10.63% -- --
5 years 122.01 109.38 -- --
annualized 17.29 15.93 -- --
10 years 265.97 245.04 -- --
annualized 13.85 13.18 -- --
Life-of-class+
(class B shares) -- -- 14.47% 9.47%
*Performance data represent past results. Investment return and
net asset value will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
+Effective March 1, 1993, the fund began offering class B shares.
Performance for each share class will differ.<PAGE>
Terms you need to know
Total return is the change in value of an investment from the
beginning to the end of a period, assuming the reinvestment of
all distributions. It may be shown at net asset value or at
public offering price.
Net asset value (NAV) is the value of all your fund's assets,
minus any liabilities, divided by the number of outstanding
shares, not reflecting any 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.
Contingent deferred sales charge (CDSC) is a charge applied at
the time of the redemption of shares rather than the time of
purchase. It generally declines and eventually disappears over a
stated period.
Class A shares are the shares of your fund offered subject to an
initial sales charge. Your fund's POP includes the maximum 5.75%
sales charge.
Class B shares are the shares of your fund offered with no
initial sales charge. Within the first six years of purchase,
they are subject to a CDSC declining from 5% to 1%. After the
sixth year, the CDSC no longer applies.
Please see the fund performance supplement on page 18 for
additional information about performance comparisons.
<PAGE>
From the
Chairman
(photograph of George Putnam)
(C) Karsh, Ottawa
George Putnam
Chairman
of the Trustees
Dear Shareholder:
Despite the sluggish economic recovery, Putnam Vista Fund
continues to deliver above-average returns. The fund's
combination of broad diversification, careful stock selection,
and risk management enabled performance at net asset value for
both class A and class B shares for the six-month period ended
January 31, 1994, to outpace the stock market as measured by the
Standard & Poor's 500 Index and the S & P Midcap Index.
As a Putnam Vista Fund shareholder, you should be pleased to note
that over the long term, your fund's performance has earned high
marks from two well-known industry "watchdogs." CDA/Wiesenberger,
an independent industry analyst, ranked your fund in the top
quartile of all long-term growth funds for the 3- and 5-year
periods ended January 31, 1994. Funds tracked numbered 326, and
271, respectively, and were ranked according to total return
performance without regard to sales charges or fees.
Your fund's performance and stability have also earned it a
four-star rating out of a possible five stars, from Morningstar
Inc., for performance as of January 31, 1994. Morningstar rates a
fund against funds with similar objectives every two weeks based
on risk-adjusted 3-, 5- and 10-year total return performance, as
applicable, adjusted for sales charges and expenses.
Fund Manager Jennifer Silver believes that her focus on growth
fundamentals at a reasonable valuation, and broad diversification
within the universe of medium-sized companies are key to the
fund's performance over the next several months. Jennifer will
continue to seek attractively valued growth stocks where an
identifiable earnings rebound is under way.
Respectfully yours,
George Putnam
March 16, 1993
<PAGE>
Report from
Putnam Management
Top 10 holdings (1/31/94)*
- --------------------------
Cisco Systems, Inc.
Harcourt General, Inc.
Leggett & Platt, Inc.
Hercules Inc.
Applied Materials, Inc.
MascoTech, Inc.
Trinity Industries, Inc.
Premark International, Inc.
Reynolds & Reynolds Co. Class A
First Interstate Bancorp
*Reflects 17.7% of portfolio, based on net assets as of 1/31/94.
Holdings are subject to change.
In emphasizing the stocks of medium-sized growth companies,
Putnam Vista Fund has discovered a fertile garden -- and has
cultivated it well. For the six months ended January 31, 1994,
your fund's total returns of 11.45% for class A shares and 10.87%
for class B shares (both at net asset value) look particularly
attractive in comparison with the 8.94% average return measured
by the Standard & Poor's|Pr 500 index, and the 10.55% return in
the S & P Midcap Index.
In our estimation, stocks of medium-sized companies that can
demonstrate above-average growth offer strong potential in
today's market. These companies with capitalizations between $300
million and $5 billion, have already survived the early, more
risky stages of corporate growth. But they are still well short
of the mature stage, where only modest levels of growth can be
expected. As a result, these stocks tend to have much more
earnings growth potential, but greater volatility than larger-cap
stocks; and much less volatility, but less earnings growth
potential than small-caps.
A systematic approach Medium-sized companies can be rewarding
opportunities for investors. Wall Street analysts focus primarily
on the large companies, which represent more than 60% of the
market's value, but only 5% of the stocks that are traded. In
contrast, medium-sized companies, which represent about 30% of
the market's value and 30% of the stocks traded, do not receive
the same scrutiny. This lack of attention means that the prices
of many mid-cap stocks may not reflect their true value.
Our stock selection process employs a proprietary quantitative
model to identify potential purchases. The best ranking stocks
are scrutinized by Putnam's research department. Reasonable
valuations, strong financial conditions, and demonstrated
earnings momentum are a few of the criteria we look for. We
believe this process can create a portfolio of seasoned companies
in solid growth phases.
Once we identify potential buy candidates, they are subjected to
a disciplined risk-control process. We spent a lot of time
putting together a diversified portfolio that is designed to
perform well in all kinds of markets: up, down, growth, or value.
Of course, there can be no assurance that such a portfolio will
actually perform according to our expectations.
Responding to change In Putnam Management's opinion, there seems
to be confirmation that the U.S. economy is rebounding. With this
in mind, we have made some strategic shifts in your portfolio to
focus on more cyclical growth companies. During the period, we
have increased the portfolio's weightings in the transportation
and machinery areas, industries that we believe should perform
well during the early stages of an economic recovery. Now that it
appears that the Clinton health care bill will not be as
expansive as first anticipated, we have also taken a more
optimistic view of the health care industries. We believe that
there will be clear opportunities for health care companies to do
well, and have increased the portfolio's weighting in this
industry. Finally, we have decreased the fund's exposure to the
financial sector, particularly the banking industry. This move
reflects our belief that most of the decline in interest rates
has already occurred.
Outlook The economic recovery has accelerated, yet its pace
remains slower than in typical recoveries. Autos, housing, and
durable goods are registering strong sales in the absence of high
consumer confidence and with anemic employment growth.
Nevertheless, we believe the strong corporate profit growth that
has resulted from corporate restructurings and improved
productivity will be sustained. Although both the stock and bond
markets have reacted in anticipation of surging inflation, costs
currently appear well contained and, therefore, interest rates
are likely to remain moderate.
In such an environment, we believe that equities remain the most
attractive long-term investment.
Given more confidence in a strong earnings outlook, we believe
the equity market should be able to provide increasingly
attractive returns. However, given subdued consumer confidence,
the lofty valuation levels of the market, and renewed concern
about inflation, the market is probably more likely to continue
its recent volatile and rotational pattern in what we expect is a
longer-term upward trend.
<PAGE>
Top industry sectors (as a percentage of net assets as of
1/31/94)
(bar chart)
Banks .........................8.0%
Retail ....................6.5%
Health care ..................6.3%
Business services ...............5.9%
Electronics ..........5.0%
<PAGE>
Portfolio of
investments owned
January 31, 1994 (Unaudited)
Common Stocks (89.3%)(a)
Number of Shares Value
Banks (8.0%)
383,800 Bank South Corp. $6,140,800
190,700 Crestar Financial Corp. 8,128,588
90,600 First Fidelity Bancorp (New Jersey) 3,997,725
144,700 First Interstate Bancorp 10,147,088
296,900 Shawmut National Corp. 7,088,488
200,400 UJB Financial Corp. 5,135,250
243,300 Union Planters Corp. 5,991,263
124,700 West One Bancorp 3,413,663
50,042,865
Retail (6.5%)
210,100 AnnTaylor(b) 4,490,888
108,950 CML Group, Inc. 1,974,719
148,900 Lowes' Cos., Inc. 9,082,900
250,300 Office Depot, Inc.(b) 9,104,663
110,600 Starbucks Corp.(b) 2,654,400
275,900 TJX Cos., Inc. (The) 7,794,175
223,600 Talbots, Inc. 5,813,600
40,915,345
Health Care (6.3%)
153,400 Health Care & Retirement Corp.(b) 3,930,875
303,700 Owens & Minor, Inc. 7,744,350
146,700 Oxford Health Plan(b) 9,682,200
112,100 U.S. Healthcare Inc. 7,454,650
104,000 United Healthcare Corp. 8,892,000
46,400 Value Health, Inc.(b) 1,838,600
39,542,675
Business Services (5.9%)
323,100 General Motors Corp. Class E 9,693,000
254,300 Olsten Corp. (The) 7,946,875
235,550 Paychex, Inc. 9,422,000
231,300 Reynolds & Reynolds Co. Class A 10,321,763
37,383,638
<PAGE>
Electronics (5.0%)
240,600 Analog Devices Inc.(b) 6,195,450
254,100 Applied Materials, Inc.(b) 11,212,153
105,800 General Instrument Corp.(b) 6,215,750
240,650 Sensormatic Electronics Corp. 7,971,531
31,594,884
Computer Software (4.9%)
273,250 CUC International, Inc.(b) 8,744,000
188,400 Cisco Systems, Inc.(b) 13,659,000
263,100 Oracle Systems Corp.(b) 8,452,088
30,855,088
Pharmaceuticals (3.8%)
173,000 Elan Corp. PLC ADR(b)(c) 7,785,000
162,200 Forest Laboratories, Inc. Class A(b) 8,251,925
253,800 Perrigo Co.(b) 7,740,900
23,777,825
Automotive Parts (3.7%)
104,000 Magna International, Inc. Class A 5,213,000
428,400 MascoTech, Inc. 10,870,650
164,200 Varity Corp.(b) 7,389,000
23,472,650
Oil and Gas (3.7%)
121,800 Anadarko Petroleum Corp. 5,785,500
96,600 Louisiana Land & Exploration Co. 4,020,975
196,000 MCN Corp. 7,227,500
236,200 Williams Cos., Inc. 6,170,725
23,204,700
Computers (3.5%)
33,600 Cabletron Systems, Inc.(b) 4,036,200
106,200 Compaq Computer Corp.(b) 9,133,200
332,400 Silicon Graphics, Inc.(b) 8,517,750
21,687,150
Insurance (3.4%)
179,900 Equitable of Iowa Companies 5,239,588
160,600 Lincoln National Corp. 6,825,500
129,200 Midocean(b) 3,326,900
98,900 SAFECO Corp. 5,835,100
21,227,088
<PAGE>
Home Furnishings (2.8%)
241,400 Leggett & Platt, Inc. 11,225,100
54,700 Shaw Industries Inc. 1,114,513
188,000 The Bombay Co., Inc.(b) 5,146,500
17,486,113
Specialty Consumer Products (2.7%)
174,500 American Greetings Corp. Class A 5,300,438
329,600 Harcourt General, Inc. 11,865,600
17,166,038
Recreation (2.5%)
31,140 GC Cos., Inc.(b) 1,144,395
270,200 International Game Technology 7,970,900
273,700 Mirage Resorts, Inc.(b) 6,808,288
15,923,583
Finance (2.5%)
328,500 Bear Stearns Companies, Inc. 8,007,188
236,200 T. Rowe Price Associates 7,676,500
15,683,688
Machinery (2.4%)
97,100 Stewart & Stevenson Services, Inc. 4,612,250
242,900 Trinity Industries, Inc. 10,657,238
15,269,488
Broadcasting (2.3%)
236,200 Liberty Media Corp. Class A(b) 6,141,200
121,600 QVC Network, Inc.(b) 5,350,400
88,100 Viacom, Inc. Class B(b) 3,061,475
14,553,075
Telephone Services (2.1%)
155,100 ALC Communications Corp.(b) 4,963,200
121,600 Newbridge Networks Corp.(b) 8,147,200
13,110,400
Trucking (2.1%)
265,600 TNT Freightways Corp. 6,573,600
216,500 Werner Enterprises, Inc. 6,386,750
12,960,350
<PAGE>
Restaurants (2.0%)
160,400 Brinker International, Inc.(b) 6,776,900
329,800 Wendy's International, Inc. 5,647,825
12,424,725
Chemicals (1.8%)
102,500 Hercules Inc. 11,223,750
Consumer Services (1.7%)
123,600 Premark International, Inc. 10,645,050
Medical Supplies (1.5%)
188,500 Imcera Group Inc. 7,139,438
73,900 Stryker Corp. 2,586,500
9,725,938
Lodging (1.4%)
173,900 Promus Companies, Inc.(b) 8,803,688
Freight (1.3%)
241,900 Airborne Freight Corp. 8,436,263
Computer Equipment (1.3%)
403,500 EMC Corp.(b) 8,322,188
Cellular Broadcasting (1.2%)
130,400 DSC Communications Corp.(b) 7,840,300
Automotive (1.1%)
208,000 Echlin, Inc. 7,228,000
Basic Industrial Products (0.9%)
267,900 Dresser Industries, Inc. 5,927,288
Paper (0.7%)
121,600 Pentair, Inc. 4,392,800
Building Products (0.2%)
93,500 Justin Industries, Inc. 1,496,000
Textiles (0.1%)
27,200 Cone Mills Corp.(b) 418,200
Total Common Stocks
(cost $468,201,658) $562,740,833
<PAGE>
Short-Term Investments (11.1%)(a)
Principal Amount Value
$15,000,000 General Electric Capital
Corp. 3.03s, February 28, 1994 $14,965,913
15,000,000 Preferred Receivables Funding
Corp. 3.04s, February 4, 1994 14,996,200
39,783,000 Interest in $414,661,000 repurchase
agreement dated January 31, 1994
with Kidder Peabody & Co., Inc.
due February 1, 1994 with respect
to various U.S. Treasury
obligations -- maturity value of
$39,786,503 for an effective
yield of 3.17% 39,786,503
Total Short-Term Investments
(cost $69,748,616) $69,748,616
Total Investments
(cost $537,950,274)(d) $632,489,449
(a) Percentages indicated are based on net assets of
$630,175,195, which correspond to a net asset value per class A
and class B share of $7.69 and $7.65, respectively.
(b) Non-income-producing security.
(c) Securities whose value is determined or significantly
influenced by trading on exchanges not in the United States or
Canada. ADR after the name of a foreign holding stands for
American Depository Receipt, representing ownership of foreign
securities on deposit with a domestic custodian bank.
(d) The aggregate identified cost on a tax basis is $538,058,814,
resulting in gross unrealized appreciation and depreciation of
$106,705,480 and $12,274,845, respectively, or net unrealized
appreciation of $94,430,635.
<PAGE>
<TABLE>
<CAPTIONS>
Statement of
assets and liabilities
January 31, 1994 (Unaudited)
<S> <C> <C>
Assets
Investments in securities, at value (identified cost
$537,950,274) (Note 1) $632,489,449
Cash 9,517
Dividends and other receivables 290,290
Receivable for shares of the Fund sold 6,252,755
Receivable for securities sold 8,528,717
Total assets 647,570,728
Liabilities
Distributions payable to shareholders $7,638
Payable for securities purchased 15,258,090
Payable for shares of the Fund repurchased 760,961
Payable for compensation of Manager (Note 2) 928,952
Payable for administrative services (Note 2) 2,341
Payable for investor servicing and custodian
fees (Note 2) 154,134
Payable for distribution fees (Note 2) 170,732
Other accrued expenses 112,685
Total liabilities 17,395,533
Net assets $630,175,195
Represented by
Paid-in capital (Note 4) $529,094,687
Undistributed net investment income 542,814
Accumulated net realized gain on investment transactions 5,998,519
Net unrealized appreciation of investments 94,539,175
Total -- Representing net assets applicable to capital
shares outstanding $630,175,195
Computation of net asset value and offering price
Net asset value and redemption price of class A shares
($551,443,515 divided by 71,704,980 shares) $7.69
-----
Offering price per class A shares (100/94.25 of $7.69)* $8.16
-----
Net asset value and offering price of class B shares
($78,731,680 divided by 10,287,175 shares)** $7.65
*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.
**Redemption price per share is equal to net asset value less any applicable contingent
deferred sales charge.
/TABLE
<PAGE>
<TABLE>
<CAPTION>
Statement of
operations
Six months ended January 31, 1994 (Unaudited)
<S> <C> <C>
Investment income
Dividends (net of foreign tax of $4,188) $3,175,972
Interest 686,488
Total investment income 3,862,460
Expenses:
Compensation of Manager (Note 2) $1,752,644
Investor servicing and custodian fees (Note 2) 254,264
Compensation of Trustees (Note 2) 9,969
Reports to shareholders 34,170
Auditing 13,364
Legal 6,858
Postage 43,007
Registration fees 3,427
Administrative services (Note 2) 3,796
Distribution fees -- class A (Note 2) 617,804
Distribution fees -- class B (Note 2) 229,804
Other 19,118
Total expenses 2,988,225
Net investment income 874,235
Net realized gain on investments (Notes 1 and 3) 25,255,502
Net unrealized appreciation of investments during the period 31,760,818
Net gain on investment transactions 57,016,320
Net increase in net assets resulting from operations $57,890,555
/TABLE
<PAGE>
<TABLE>
<CAPTION>
Statement of
changes in net assets
Six months ended Year ended
January 31 July 31
1994* 1993
<S> <C> <C>
Increase in net assets
Operations:
Net investment income $874,235 $4,100,606
Net realized gain on investments 25,255,502 29,587,510
Net unrealized appreciation of investments 31,760,818 34,206,444
Net increase in net assets resulting from
operations 57,890,555 67,894,560
Distributions to shareholders
From net investment income:
Class A (1,330,752) (6,107,509)
Class B (69,068) (71,615)
From net realized gain on investments:
Class A (37,127,073) (59,280,919)
Class B (4,466,443) --
Increase from capital share transactions
(Note 4) 154,833,443 121,649,984
Total increase in net assets 169,730,662 124,084,501
Net assets
Beginning of period 460,444,533 336,360,032
End of period (including undistributed
net investment income of $542,814 and
$1,068,399, respectively) $630,175,195 $460,444,533
*Unaudited.
/TABLE
<PAGE>
<TABLE>
<CAPTION>
Financial
Highlights*
(For a share outstanding throughout the period)
March 1, 1993 Eight
Six Months (commencement Six months months
endedof operations) to ended ended
January 31 July 31 January 31 Year ended July 31
1994**
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Class B Class A
Net Asset Value,
Beginning of Period $7.46 $7.12 $7.47 $7.59 $6.97 $6.48 $7.05 $5.86 $7.64 $6.74 $5.87 $4.62
Investment Operations:
Net Investment
Income (Loss) .01 (.01) .01 .07 .14 .17 .21 .23 .16 .13 .20 .11
Net Realized and
Unrealized Gain
(Loss) on Investments.77 .40 .81 1.28 1.07 .68 (.01) 1.19 (.99 ) 1.93 1.06 1.15
Total from Investment
Operations .78 .39 .82 1.35 1.21 .85 .20 1.42 (.83) 2.06 1.26 1.26
Distributions to
Shareholders
From Net Investment
Income (.01) (.05) (.02) (.12) (.19) (.10) (.18) (.23) (.19) (.21) (.20) (.01)
From Net Realized
Gain on Investments(.58) -- (.58)(1.35) (.40) (.26) (.59) -- (.76) (.95) (.19) --
Total Distributions (.59) (.05) (.60)(1.47) (.59) (.36) (.77) (.23) (.95) (1.16) (.39) (.01)
Net Asset Value,
End of Period $7.65 $7.46 $7.69 $7.47 $7.59 $6.97 $6.48 $7.05 $5.86 $7.64 $6.74 $5.87
Total Investment
Return at Net Asset
Value (%)(a) 21.74(b) 12.98(b) 22.90(b) 19.63 18.46 14.27 3.15 24.81(11.40) 36.86 23.00
Net Assets, End
of Period
(in thousands) $75,323 $20,722 $460,313 $439,722 $336,360 $287,712$256,897 $269,392
<PAGE>
Ratio of Expenses
to Average Net
erage Net
Assets (%) 1.76(b) .72(b) 1.04(b) .96 .96 .99 .92 .93 1.06 1.05 1.021.05(b)
Ratio of Net
Investment Income
to Average Net
Assets (%) .43(b) (.07)(b) .39(b) 1.08 1.92 2.73 3.10 3.55 2.75 2.28 3.343.05(b)
Portfolio
Turnover (%)+ 52.25(c) 120.57(c) 52.25(c)120.57 143.92 75.89 46.94 69.34 87.45 117.26 276.61
*Table has been restated to reflect a 3-for-1 share split, class A only, declared by the Fund to shareholders of record
on October 2
periods ended through July 31, 1992 have been restated to conform with requirements issued by the SEC in April, 1993.
**Unaudited.
***Per share net investment income has been determined on the basis of the weighted average number of shares
outstanding during the
+Portfolio turnover calculations for fiscal 1985 and thereafter include transactions in
U.S. government securities with maturities g
exclude all transactions in U.S. government securities.
(a) Total investment return assumes dividend reinvestment and does not reflect the effect of sales charges.
(b) Annualized.
(c) Not annualized.
/TABLE
<PAGE>
Notes to
financial statements
January 31, 1994 (Unaudited)
Note 1 Significant accounting policies
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 selected for above-average growth
potential and that involve certain risks. The Fund may also trade
securities for short-term profits.
The Fund offers both class A and class B shares. The Fund
commenced its public offering of class B shares on March 1, 1993.
Class A shares are sold with a maximum front-end sales charge of
5.75%. Class B shares 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. Expenses of the
Fund are borne pro-rata by the holders of both classes of shares,
except that each class bears expenses unique to that class
(including the distribution fees applicable to such class) and
votes as a class only with respect to its own distribution plan
or other matters on which a class vote is required by law or
determined by the Trustees. Shares of each class would receive
their pro-rata share of the net assets of the Fund, if the Fund
were liquidated. In addition, the Trustees declare separate
dividends on each class of shares.
The following is a summary of significant accounting policies
consistently followed by the Fund in the preparation of its
financial statements. The 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. 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 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., 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.
Foreign currency-denominated receivables and payables are
"marked-to-market" daily using the current exchange rate. The
fluctuation between the original exchange rate and the current
exchange rate is recorded as unrealized translation gain or loss.
Upon receipt or payment, the Fund realizes a gain or loss
amounting to the difference between the original value and the
ending value of the receivable or payable. Foreign currency gains
and losses related to dividends receivable are reported as part
of dividend income.
E) Option accounting principles When the Fund writes a call
option or put option, an amount equal to the premium received by
the Fund is included in the Fund's "Statement of assets and
liabilities" as an asset and an equivalent liability. The amount
of the liability is subsequently "marked-to-market" to reflect
the current market value of the option written. The current
market value of an option is the last sale price, or in the
absence of a sale, the last offering price. If an option expires
on its stipulated expiration date, or if the Fund enters into a
closing purchase transaction, the Fund realizes a gain (or loss
if the cost of a closing purchase transaction exceeds the premium
received when the option was written) without regard to any
unrealized gain or loss on the underlying security, and the
liability related to such option is extinguished. If a written
call option is exercised, the Fund realizes a gain or loss from
the sale of the underlying security and the proceeds of the sale
are increased by the premium originally received. If a written
put option is exercised, the amount of the premium originally
received reduces the cost of the security which the Fund
purchases upon exercise of the option.
F) 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.
G) Distributions to shareholders Distributions to shareholders
are recorded by the Fund on the ex-dividend date.
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 for the quarter. Such fee is based on the
following annual rates: 0.65% of the first $500 million of
average net assets, 0.55% of the next $500 million, 0.50% of the
next $500 million, and 0.45% of any amount over $1.5 billion,
subject, under current law, to reduction in any year to the
extent that expenses (exclusive of brokerage, interest, taxes and
distribution fees) of the Fund exceed 2.5% of the first $30
million of average net assets, 2.0% of the next $70 million and
1.5% of any amount over $100 million and by the amount of certain
brokerage commissions and fees (less expenses) received by
affiliates of the Manager on the Fund's portfolio transactions.
The Fund also reimburses the Manager for the compensation and
related expenses of certain officers of the Fund and their staff
who provide administrative services to the Fund. The aggregate
amount of all such reimbursements is determined annually by the
Trustees. For the six months ended January 31, 1994, the Fund
paid $3,796 for these services.
Trustees of the Fund receive an annual Trustee's fee of $1,440
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 (PFTC), a subsidiary of Putnam
Investments, Inc. Investor servicing agent functions are provided
by Putnam Investor Services, a division of PFTC. Fees paid for
these investor servicing and custodial functions for the six
months ended January 31, 1994 amounted to $254,264. Investor
servicing and custodian fees reported in the Statement of
operations for the six months ended January 31, 1994 have been
reduced by credits allowed by PFTC.
The Fund has adopted a distribution plan with respect to class A
shares (the "class A Plan") pursuant to Rule 12b-1 under the
Investment Company Act of 1940. The purpose of the class A 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 class A shares. The
Trustees have approved payment by the Fund to Putnam Mutual Funds
Corp. at an annual rate of 0.25% of the Fund's average net assets
attributable to class A shares. For the six months ended January
31, 1994, the Fund paid $617,804 in distribution fees for class A
shares.
During the six months ended January 31, 1994, Putnam Mutual Funds
Corp., acting as an underwriter, received net commissions of
$136,439 from the sale of class A shares of the Fund.
The Fund has adopted a distribution plan with respect to class B
shares (the "class B Plan") pursuant to Rule 12b-1 under the
Investment Company Act of 1940. The purpose of the class B Plan
is to compensate Putnam Mutual Funds Corp. for services provided
and expenses incurred by it in distributing class B shares. The
class B Plan provides for payments by the Fund to Putnam Mutual
Funds Corp. at an annual rate of 1.00% of the Fund's average net
assets attributable to class B shares. For the six months ended
January 31, 1994, the Fund paid $229,804 in distribution fees for
class B shares.
Putnam Mutual Funds Corp., acting as an underwriter, also
receives the proceeds of the contingent deferred sales charges
levied on class B share redemptions within six years of purchase.
The charge is based on declining rates, which begin at 5.0% of
the net asset value of the redeemed shares. Putnam Mutual Funds
Corp. received $24,850 in contingent deferred sales charges from
such redemptions for the six months ended January 31, 1994.
Note 3 Purchases and sales of securities
During the six months ended January 31, 1994, purchases and sales
of investment securities other than U.S. government obligations
and short-term investments aggregated $361,512,572 and
$251,139,943, respectively. There were no purchases or sales of
U.S. government obligations during the period. In determining the
net gain or loss on securities sold, the cost of securities has
been determined on the identified cost basis.
<PAGE>
<TABLE>
<CAPTION>
Note 4 Capital shares
At January 31, 1994, there was an unlimited number of shares of beneficial interest
authorized, divided into two classes, Class A and Class B capital shares. Transactions in
capital shares were as follows:
Six months ended Year ended
January 31 July 31
1994 1993
Class A Shares Amount Shares Amount
<S> <C> <C> <C> <C>
Shares sold 13,764,717 $106,129,842 19,894,210 $145,612,132
Shares issued in
connection with
reinvestment of
distributions 4,799,553 35,036,745 8,718,792 59,759,452
18,564,270 141,166,587 28,613,002 205,371,584
Shares repurchased(5,699,571) (43,912,446) (14,103,366) (103,990,990)
Net increase 12,864,699 $97,254,141 14,509,636 $101,380,594
<PAGE>
March 1, 1993
(commencement of
Six months ended operations) to
January 31 July 31
1994 1993
Class B Shares Amount Shares Amount
Shares sold 7,288,255 $56,104,218 2,837,406 $20,704,725
Shares issued in
connection with
reinvestment of
distributions 554,467 4,036,513 9,769 70,043
7,842,722 60,140,731 2,847,175 20,774,768
Shares repurchased (333,894) (2,561,429) (68,828) (505,378)
Net increase 7,508,828 $57,579,302 2,778,347 $20,269,390
/TABLE
<PAGE>
Note 5 Reclassification of capital accounts
Effective August 1, 1993, Putnam Vista Fund has adopted the
provisions of Statement of Position 93-2 "Determination,
Disclosure and Financial Statement Presentation of Income,
Capital Gain and Return of Capital Distributions by Investment
Companies (SOP)." The purpose of this SOP is to report the
accumulated net investment income (loss) and accumulated net
realized gain (loss) accounts in such a manner as to approximate
amounts available for future distributions (or to offset future
realized capital gains) and to achieve uniformity in the
presentation of distributions by investment companies.
As a result of the SOP, the adjustments are as follows:
Undistributed Accumulated
Net Investment Net Realized Additional
Income Capital Gain Paid-in Capital
-------------- ------------ ---------------
$(578,003) $6,977,903 $(6,399,900)
These adjustments represent the cumulative amounts necessary to
report these balances through July 31, 1993, the close of the
Fund's last fiscal year-end for financial reporting and tax
purposes.
Fund performance supplement
Putnam Vista Fund is a portfolio managed for capital appreciation
primarily through investment in common stocks. Standard & Poor's
500 Index is an unmanaged list of large-capitalization common
stocks, and the S&P Midcap Index is an unmanaged list of
midcapitalization common stocks. The indexes assume reinvestment
of all distributions and do not take into account brokerage
commissions or other costs. The fund's portfolio contains
securities that do not match those in the indexes. The Consumer
Price Index is a commonly used measure of inflation; it does not
represent an investment return.
Fund performance data do not take into account any adjustment
made for payments under the fund's distribution plan prior to its
implementation in fiscal 1990, or taxes payable on reinvested
distributions.
The fund performance supplement has been prepared by Putnam
Management to provide additional information about the fund and
the indexes used for performance comparisons. The information is
not part of the portfolio of investments owned or the financial
statements.
<PAGE>
Your
Trustees
George Putnam
Chairman
Chairman and President,
The Putnam Funds
William F. Pounds
Vice Chairman
The Putnam Funds,
Professor of Management,
Alfred P. Sloan
School of Management,
Massachusetts Institute of
Technology
Jameson Adkins Baxter
President,
Baxter Associates, Inc.
Hans H. Estin
Vice Chairman,
North American
Management Corporation
John A. Hill
Principal and
Managing Director,
First Reserve Corp.
Elizabeth T. Kennan
President
Mount Holyoke College
Lawrence J. Lasser
President and
Chief Executive Officer,
Putnam Investments, Inc.
Robert E. Patterson
Executive Vice President,
Cabot Partners
Limited Partnership
Donald S. Perkins
Director of various
corporations
George Putnam, III
President, New Generation
Research, Inc.
A.J.C. Smith
Chairman of the Board
and Chief Executive Officer,
Marsh & McLennan
Companies, Inc.
W. Nicholas Thorndike
Director of various
corporations
<PAGE>
Putnam
Vista
Fund
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
Investor servicing agent
Putnam Investor Services
Mailing address:
P.O. Box 41203
Providence, RI 02940-1203
1-800-225-1581
Custodian
Putnam Fiduciary
Trust Company
Legal counsel
Ropes & Gray
(DALBAR logo)
Putnam Investor Services has received the DALBAR award each year
since the award's 1990 inception. In more than 10,000 tests of 38
shareholder service components, Putnam outperformed the industry
standard in every category.
06/68 11150
<PAGE>
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
Jennifer K. Silver
Vice President
and Fund Manager
John J. Morgan
Vice President
William N. Shiebler
Vice President
John R. Verani
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
Vista 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.
<PAGE>
- ---------------
Bulk Rate
U.S. Postage
Paid
Boston, MA
Permit No. 53749
- ---------------
PUTNAM INVESTMENTS
The Putnam Funds
One Post Office Square
Boston, Massachusetts 02109
<PAGE>
APPENDIX TO FORM N30D FILINGS TO DESCRIBE DIFFERENCES BETWEEN
PRINTED AND EDGAR-FILED TEXTS:
(1) Rule lines for tables are omitted.
(2) Boldface and italic typefaces are displayed in normal type.
(3) Headers (e.g, the name of the fund) and footers (e.g., page
numbers and "The accompanying notes are an integral part of these
financial statements") are omitted.
(4) Because the printed page breaks are not reflected, certain
tabular and columnar headings and symbols are displayed
differently in this filing.
(5) Bullet points and similar graphic signals are omitted.
(6) Page numbering is different.
