Putnam
Vista
Fund
SEMIANNUAL REPORT
January 31, 1996
Putnam
Vista
Fund
[SCALES LOGO]
BOSTON * LONDON * TOKYO
Fund highlights
*According to Lipper Analytical Services, Putnam Vista
Fund's class A share total return ranked 89 out of 580 growth funds for
the 12 months ended January 31, 1996, placing it in the top 16% of funds
in this category.*
*"Putnam Vista Fund's mid-cap focus has recently paid
off big for the portfolio, helping to improve its relative standing
substantially among Growth funds. Growth-oriented investors looking to
add exposure to the mid-cap arena should find this fund a good choice."
--The Value Line Mutual Fund Survey,
November 28, 1995
CONTENTS
4 Report from Putnam Management
8 Fund performance summary
11 Portfolio holdings
17 Financial statements
*Lipper Analytical Services, an independent research organization, ranks
funds according to total return performance. Their rankings vary over
time and do not reflect the effects of sales charges. For periods ended
1/31/96, the fund's class A shares ranked 89 out of 580, 33 out of 238,
and 22 out of 154 growth funds for 1-, 5-, and 10-year performance,
respectively. Class B and class M shares ranked 113 and 98,
respectively, out of 580 growth funds for 1-year performance. Past
performance is not indicative of future results.
[GRAPHIC OMITTED: PHOTO OF GEORGE PUTNAM]
(copyright) Karsh, Ottawa
From the Chairman
Dear Shareholder:
The first half of Putnam Vista Fund's current fiscal year fell squarely
within one of the most exuberant stock market environments in recent
memory. The extent of the rise in equities, along with management's
adept positioning, is clearly reflected in your fund's performance
during the six months ended January 31, 1996.
Quite naturally, we are pleased with the results. However, as recent
events have demonstrated, favorable conditions like these do not last
indefinitely. It would be a realistic expectation to see some moderation
in the pace of the advance and further corrections from time to time
during the second half of fiscal 1996. Putnam Management believes the
prospect of a slower economy still has the potential to cool equity
investors' ardor a bit.
As a result, the market may be in for some additional near-term
volatility. Nevertheless, your fund's management team believes that
stocks, on balance, will continue their upward course in 1996, though at
a more subdued pace than they enjoyed in 1995.
Respectfully yours,
/s/George Putnam
Chairman of the Trustees
March 20, 1996
Report from the Fund Managers
Jennifer Silver, lead manager
Michael J. Mufson
Anthony C. Santosus
As the dramatic market rally that endured throughout 1995 stretched into
January of this year, Putnam Vista Fund responded with outstanding
performance. Despite a gradual slowdown in economic growth during this
period, stocks generally continued to prosper. Corporate earnings
remained strong largely because of diligent cost-cutting efforts and
sustained growth in certain sectors of the economy. Furthermore,
interest rates fell markedly from their November 1994 peak.
During the semiannual period ended January 31, 1996, your fund's class A
shares produced total returns of 7.94% at net asset value (NAV) and
1.77% at public offering price. Class A share performance at NAV
outpaced the six-month 7.33% return posted by its benchmark, the
Standard & Poor's Midcap 400 Index. (Performance figures for the fund's
class B and class M shares appear on page 8.) Your fund's hardy
performance over the fiscal period can be traced to its investments in
several thriving industries, including technology, health care, business
services, and financial services.
*A SHIFT IN THE TECHNOLOGY SECTOR
By and large, technology stocks continued their strong performance
throughout the period, although the focus within this sector began to
change. In the last quarter of 1995, demand for new computer hardware
waned as more and more consumers became owners of new equipment. At the
same time, these owners began actively seeking innovative software and
other connectivity tools in order to create networks and simplify
Internet access. Shifting a portion of the portfolio's technology
holdings away from hardware-related holdings, such as semiconductor
producers, and toward this newly popular segment allowed the fund to
capitalize on this sector's developing opportunities. Among the
portfolio's holdings, Ascend Communications (networking and Internet-
related products) and Cognex Corporation (automation software used in
manufacturing) enjoyed solid earnings during the period and contributed
to the fund's sound results. (While these stocks, along with others
discussed in this report, were viewed favorably during the fiscal
period, all portfolio holdings are subject to review and adjustments in
accordance with the fund's investment strategy and may well vary in the
future.)
Elsewhere in the technology sector, the fund drew support from
investments in telecommunications holdings. LCI International, an
alternate provider of long distance telephone service, grew dramatically
throughout the period by targeting small markets and providing service
at lower rates. Paging Networks, a provider of personal paging devices,
enjoyed robust earnings as a result of the burgeoning popularity of
personal pagers.
*HEALTH-CARE STOCKS BOLSTER PERFORMANCE
In the first half of calender 1995, companies in the health-care sector
were still languishing from the uncertainty created by the Clinton
administration's attempt to overhaul the nation's health-care system.
After a temporary recovery following the initiative's failure, stocks in
this sector continued to lose ground as the industry began to correct
its own excesses.
But, as the saying goes, "time heals all wounds." Over the past six
months, some segments of this sector regained their footing. Beginning
[GRAPHIC OMITTED: worm chart MIDCAP STOCKS VS. THE MARKET 1990-1996
Y-axis reads (top to bottom) 160% to 0% in 20% decrements
X-axis reads (left to right) 1990 to 1996 in one-year increments
A solid black line represents S&P Midcap 400 Index
A solid white line represents S&P 500 Index
Standard & Poor's Standard & Poor's
500 Index Midcap 400 Index
----------------- -----------------
1990 14.49 16.16
1991 24.08 29.91
1992 52.20 83.91
1993 68.06 104.77
1994 89.70 135.82
1995 90.70 124.46
1996 164.34 195.11
Footnote reads:
This chart compares the percentage change in the prices of stocks of
midsize companies (market capitalizations from $300 million to $5 billion)
with the overall stock market between 1/31/90 and 1/31/96. Sources:
S&P 500 Index, S&P Midcap 400 Index. Indexes are unmanaged;performance
and holdings in the indexes will differ from the fund's holdings.]
in the third quarter of 1995, health maintenance organizations (HMOs)
largely grew more attractive to investors because of their undervalued
prices and began to rebound. This trend had a favorable effect on Oxford
Health Plan, one of the fund's HMO holdings, which boasted a 40% price
appreciation during the semiannual fiscal period.
Meanwhile, drug-store companies continued a surge that had begun earlier
in the year. Drug stores typically conduct more pharmacy business
through HMOs and other health-service providers than through sales to
the general public, and sales to these institutional consumers grew
during the period. This increase in revenues, combined with cost-
effective consolidations, gave rise to solid growth and improved
earnings in this industry. For your fund, investments in Eckerd Drug
Stores and Revco (which agreed during the period to merge with Rite-Aid
Pharmacies) were especially profitable.
*TWO SERVICE SECTORS ADD A BOOST
The fund's hefty allocation to business-service providers included
several companies that boasted consistent growth and predictable
earnings. These attributes are always beneficial, and were especially
stabilizing to the portfolio as slowing economic growth over the period
fueled concern about a possible recession. One such holding was First
Financial Management, a merchant processor that assumes responsibility
for credit card transactions; this company realized higher profit
margins as it took on larger transactions throughout 1995. Elsewhere in
the business-services sector, another holding, Primark, generated
healthy earnings through Data Stream, its subsidiary in the flourishing
financial-information segment.
In the financial-services industry, a number of banks boasted strong
performances over the past six months. BayBank, Crestar Financial, and
First Bank System reaped the benefits of trends toward higher-quality
loans and corporate consolidation. In addition, because these banks are
fee-based, they generate additional earnings that are independent of
interest rates.
*SECTORS TO WATCH IN THE COMING MONTHS
As we approach the second half of the fund's fiscal year, we will
continue to focus on securities that deliver consistent earnings
[GRAPHIC OMITTED: TOP 10 HOLDINGS (1/31/96)*
Hospitality Franchise Systems
Lodging
3 COM Corp.
Computer communications systems
America Online
On-line services
Parametic Technology Corp.
Computer software
Paychex, Inc.
Payroll processing
Mentor Corp.
Medical devices
Bank of Boston Corp.
Bank
U.S. Filter Corp.
Waste treatment equipment
General Nutrition Companies
Health products distibutor
Boston Scientific Corp.
Medical devices
Footnote reads:
*These holdings represent 14.5% of the fund's net assets. Portfolio
holdings will vary over time.
growth. Our investments in health care, technology, and financial- and
business-service providers form a sturdy base of these types of companies. We
will look to sustain the portfolio weighting in technology stocks --
which we believe offer excellent long-term potential -- but we may
concentrate the fund's allocation to this sector in software,
networking, and connectivity holdings, as discussed earlier in this
report.
In the health-care sector, HMOs began what may be a sustained recovery
in the first half of the fund's fiscal year. At the same time, we began
to increase our HMO holdings, and we may build on our current positions
if economic trends and market conditions make this an attractive
investment strategy.
The views expressed here are exclusively those of Putnam Management.
They are not meant as investment advice. Although the described holdings
were viewed favorably during the period 7/31/95-1/31/96, there is no
guarantee the fund will continue to hold these securities in the future.
Performance summary
Performance should always be considered in light of a fund's investment
strategy. Putnam Vista Fund is designed for investors seeking capital
appreciation primarily through common stocks.
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. We show
total return in two ways: on a cumulative long-term basis and on average
how the fund grew each year over varying periods.
TOTAL RETURN FOR PERIODS ENDED 1/31/96
Class A Class B Class M
Inception date (6/3/68) (3/1/93) (12/8/94)
NAV POP NAV CDSC NAV POP
- ------------------------------------------------------------------------
6 months 7.94% 1.77% 7.51% 2.63% 7.75% 4.01%
- ------------------------------------------------------------------------
1 year 39.93 31.96 38.86 33.86 39.47 34.54
- ------------------------------------------------------------------------
5 years 141.78 127.71 -- -- -- --
Annual average 19.31 17.89 -- -- -- --
- ------------------------------------------------------------------------
10 years 321.02 296.82 -- -- -- --
Annual average 15.46 14.78 -- -- -- --
- ------------------------------------------------------------------------
Life of class B -- -- 50.38 47.38 -- --
Annual average -- -- 15.00 14.20 -- --
- ------------------------------------------------------------------------
Life of class M -- -- -- -- 48.30 43.19
Annual average -- -- -- -- 40.05 35.92
- ------------------------------------------------------------------------
COMPARATIVE RETURNS FOR PERIODS ENDED 1/31/96
Standard & Poor's Consumer
Midcap 400 Index Price Index
- ------------------------------------------------------------------------
6 months 7.33% 1.25%
- ------------------------------------------------------------------------
1 year 31.44 2.73
- ------------------------------------------------------------------------
5 years 126.98 14.71
Annual average 17.81 2.78
- ------------------------------------------------------------------------
10 years 325.47 40.88
Annual average 15.58 3.49
- ------------------------------------------------------------------------
Life of class B 46.39 7.90
Annual average 13.94 2.64
- ------------------------------------------------------------------------
Life of class M 34.32 3.14
Annual average 28.68 2.68
- ------------------------------------------------------------------------
Fund performance data 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.
Performance data represent past results. Investment returns and
principal value will fluctuate so 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 reflects the applicable contingent deferred sales charge, with the
maximum being 5%. Past performance is not indicative of future results.
total return for periods ended 12/31/95
TOTAL RETURN FOR PERIODS ENDED 12/31/95
(most recent calendar quarter)
Class A Class B Class M
Inception date (6/3/68) (3/1/93) (12/8/94)
NAV POP NAV CDSC NAV POP
- ------------------------------------------------------------------------
6 months 17.31% 10.57% 16.74% 11.74% 17.01% 12.90%
- ------------------------------------------------------------------------
1 year 39.37 31.32 38.11 33.11 38.52 33.68
- ------------------------------------------------------------------------
5 years 154.75 140.04 -- -- -- --
Annual average 20.57 19.14 -- -- -- --
- ------------------------------------------------------------------------
10 years 327.42 302.83 -- -- -- --
Annual average 15.63 14.95 -- -- -- --
- ------------------------------------------------------------------------
Life of class B -- -- 51.06 48.06 -- --
Annual average -- -- 15.63 14.82 -- --
- ------------------------------------------------------------------------
Life of class M -- -- -- -- 48.96 43.83
Annual average -- -- -- -- 44.62 40.01
- ------------------------------------------------------------------------
PRICE AND DISTRIBUTION INFORMATION
6 months ended 1/31/96
Class A Class B Class M
- ------------------------------------------------------------------------
Distributions (number) 1 1 1
- ------------------------------------------------------------------------
Income -- -- --
- ------------------------------------------------------------------------
Capital gains
- ------------------------------------------------------------------------
Long-term $0.582 $0.582 $0.582
- ------------------------------------------------------------------------
Short-term $0.275 $0.275 $0.275
- ------------------------------------------------------------------------
Total $0.857 $0.857 $0.857
- ------------------------------------------------------------------------
Share value NAV POP NAV NAV POP
- ------------------------------------------------------------------------
7/31/95 $9.23 $9.79 $9.08 $9.19 $9.52
- ------------------------------------------------------------------------
1/31/96 9.06 9.61 8.86 9.00 9.33
- ------------------------------------------------------------------------
TERMS AND DEFINITIONS
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 charge 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 Midcap 400 Index is an unmanaged, market-weighted list
of 400 medium-sized companies, each affecting the index in proportion to
market value. The index assumes reinvestment of all distributions and
does not take into account brokerage commissions or other costs. The
fund's portfolio contains securities that do not match those in the
index.
Standard & Poor's 500 Index is an unmanaged list of common stocks that
is frequently used as a general measure of stock market performance. The
index assumes reinvestment of all distributions and does not take into
account brokerage commissions or other costs. The fund's portfolio
contains securities that do not match those in the index.
Consumer Price Index (CPI) is a commonly used measure of inflation; it
does not represent an investment return.
<TABLE>
<CAPTION>
Portfolio of investments owned
January 31, 1996 (Unaudited)
COMMON STOCKS (88.9%)*
NUMBER OF SHARES VALUE
<S> <C> <C> <C>
Aerospace (1.0%)
- ------------------------------------------------------------------------------------------------
198,800 Sundstrand Corp. $ 13,717,200
Apparel (0.8%)
- ------------------------------------------------------------------------------------------------
279,800 Tommy Hilfiger Corp. + 10,632,400
Banks (3.8%)
- ------------------------------------------------------------------------------------------------
405,000 Bank of Boston Corp. 18,528,750
198,800 First American Corp. Tennessee 9,492,700
331,400 First Bank System, Inc. 17,398,500
112,300 Star Banc Corp. 7,018,750
------------------
52,438,700
Broadcasting (1.5%)
- ------------------------------------------------------------------------------------------------
243,000 Clear Channel Communications, Inc. + 11,178,000
316,600 Heritage Media Corp. Class A + 9,537,575
33,250 Renaissance Communications Corp. + 656,688
------------------
21,372,263
Business Services (10.6%)
- ------------------------------------------------------------------------------------------------
24,200 Alco Standard Corp. 949,850
365,700 Bisys Group, Inc. + 11,245,275
368,225 CUC International, Inc. + 13,578,297
500,650 Corporate Express, Inc. + 13,204,644
434,800 DST Systems, Inc. + 13,207,050
898,300 Equifax, Inc. 16,730,838
310,700 Gartner Group Inc. Class A, + 17,166,175
382,875 Paychex, Inc. 19,861,631
316,400 Primark Corp. + 10,559,850
463,900 Reynolds & Reynolds Co. Class A 18,034,113
325,300 Robert Half International, Inc. + 13,703,263
------------------
148,240,986
Chemicals (1.0%)
- ------------------------------------------------------------------------------------------------
412,400 Praxair, Inc. 14,021,600
Correctional Facilities (0.7%)
- ------------------------------------------------------------------------------------------------
242,200 Corrections Corp. 10,323,775
Computer Services (2.5%)
- ------------------------------------------------------------------------------------------------
483,400 America Online, Inc. + 21,632,150
257,700 Cambridge Technology Partners, Inc. + 12,756,150
------------------
34,388,300
Computer Software (5.7%)
- ------------------------------------------------------------------------------------------------
125,600 Cognex Corp. + 2,794,600
301,000 Electronics for Imaging, Inc. + 10,911,250
146,200 Informix Corp. + 4,879,425
173,050 McAfee Associates, Inc. + 8,652,500
131,300 Medic Computer Systems, Inc. 7,451,275
306,800 Parametric Technology Corp. + 19,865,300
217,200 PeopleSoft, Inc. + 10,317,000
397,600 Softkey International, Inc. + 5,516,700
294,500 Synopsys, Inc. + 8,614,125
------------------
79,002,175
Computers (2.0%)
- ------------------------------------------------------------------------------------------------
382,900 Symbol Technologies, Inc. + 12,779,288
486,000 Zebra Technologies Corp. + 15,066,000
------------------
27,845,288
Conglomerates (0.5%)
- ------------------------------------------------------------------------------------------------
140,100 Thermo Electron Corp. + 7,635,450
Education (0.9%)
- ------------------------------------------------------------------------------------------------
349,400 Apollo Group, Inc. Class A 13,015,150
Electronics and Electrical Equipment (1.0%)
- ------------------------------------------------------------------------------------------------
646,300 BMC Industries, Inc. 13,814,663
Environmental Control (2.6%)
- ------------------------------------------------------------------------------------------------
324,000 Sanifill, Inc. + 11,785,500
714,300 U.S. Filter Corp. + 18,393,225
130,900 United Waste Systems, Inc. + 5,645,063
------------------
35,823,788
Financial Services (3.7%)
- ------------------------------------------------------------------------------------------------
552,300 Credit Acceptance Corp. + 11,529,263
329,900 Finova Group, Inc. 16,659,950
377,600 Greentree Financial Corp. 11,139,200
1,014,550 Mercury Finance Co. 12,935,513
------------------
52,263,926
Food and Beverages (3.0%)
- ------------------------------------------------------------------------------------------------
397,600 Canandaigua Wine Co. Class A, + 14,810,600
563,000 IBP, Inc. 14,989,875
36,000 Pioneer Hi-Bred International, Inc. 1,836,000
449,200 Whitman Corporation 10,219,300
------------------
41,855,775
Funeral/Cemetery Services (0.8%)
- ------------------------------------------------------------------------------------------------
308,700 Stewart Enterprises, Inc. Class A 11,730,600
Gaming (0.9%)
- ------------------------------------------------------------------------------------------------
331,400 Mirage Resorts, Inc. + 12,924,600
HMOs (2.7%)
- ------------------------------------------------------------------------------------------------
303,900 Healthsource, Inc. + 10,180,650
224,200 Oxford Health Plan 15,469,800
130,800 Pacificare Health Systems, Inc. Class B, + 12,066,300
------------------
37,716,750
Health Care Services (3.2%)
- ------------------------------------------------------------------------------------------------
287,200 Cardinal Health, Inc. 17,124,300
317,900 Omnicare, Inc. 14,782,350
451,500 Physician Sales & Service, Inc. + 12,867,750
------------------
44,774,400
Insurance (1.0%)
- ------------------------------------------------------------------------------------------------
279,800 The PMI Group, Inc. 14,024,975
Lodging (2.0%)
- ------------------------------------------------------------------------------------------------
324,000 Hospitality Franchise Systems, Inc. + 26,892,000
12,850 La Quinta Inns, Inc. 343,738
------------------
27,235,738
Medical Supplies and Devices (6.5%)
- ------------------------------------------------------------------------------------------------
353,424 Boston Scientific Corp. + 18,112,980
371,100 Guidant Corp. 17,024,213
256,800 IDEXX Laboratories, Inc. + 12,904,200
660,100 Mentor Corp. 18,565,313
250,400 Steris Corp. + 8,200,600
273,600 Stryker Corp. 15,287,400
------------------
90,094,706
Networking Equipment (4.9%)
- ------------------------------------------------------------------------------------------------
486,000 3Com Corp. + 22,295,250
81,700 Ascend Communications, Inc. + 3,176,088
183,500 Cabletron Systems, Inc. + 14,152,438
133,800 Cascade Communications Corp. + 10,469,850
99,900 Shiva Corp. + 7,167,825
147,300 Stratacom, Inc. + 11,047,500
------------------
68,308,951
Paging (1.2%)
- ------------------------------------------------------------------------------------------------
22,200 Mobilemedia Corp. + 468,975
655,000 Paging Network, Inc. + 16,702,500
------------------
17,171,475
Patient Care (4.9%)
- ------------------------------------------------------------------------------------------------
463,900 American Medical Response + 14,380,900
226,900 Genesis Health Ventures, Inc. + 9,558,163
419,700 Health Care & Retirement Corp. + 15,371,513
574,350 Health Management Assoc., Inc. + 17,302,294
288,400 Vencor, Inc. + 10,995,250
------------------
67,608,120
Pharmaceuticals and Biotechnology (3.0%)
- ------------------------------------------------------------------------------------------------
382,900 Biochem Pharmaceutical, Inc. + 16,847,600
559,135 ICN Pharmaceuticals, Inc. 11,112,808
324,000 Teva Pharmaceutical Industries Ltd. ADR (Israel) 14,519,250
------------------
42,479,658
Photography (0.7%)
- ------------------------------------------------------------------------------------------------
207,800 Polaroid Corp. 9,325,025
Publishing (0.3%)
- ------------------------------------------------------------------------------------------------
121,900 Harcourt General, Inc. 4,754,100
Restaurants (0.8%)
- ------------------------------------------------------------------------------------------------
329,700 Boston Chicken, Inc. + 11,209,800
Retail (5.9%)
- ------------------------------------------------------------------------------------------------
384,000 Eckerd Corp. + 16,752,000
829,400 General Nutrition Companies, Inc. + 18,143,125
441,800 Safeway, Inc. + 11,265,900
693,500 Staples, Inc. + 17,077,438
337,200 Sunglass Hut International + 9,378,375
538,900 TJX Cos., Inc. 10,171,738
------------------
82,788,576
Savings and Loans (1.7%)
- ------------------------------------------------------------------------------------------------
346,100 Charter One Financial, Inc. 10,945,413
397,600 TCF Financial Corp. 13,071,100
------------------
24,016,513
Semiconductors (2.7%)
- ------------------------------------------------------------------------------------------------
530,250 Analog Devices Inc. + 11,930,625
241,500 Linear Technology Corp. 10,656,188
332,400 Tencor Instruments + 7,665,975
338,700 Teradyne, Inc. + 7,493,738
------------------
37,746,526
Telecommunication (0.9%)
- ------------------------------------------------------------------------------------------------
532,200 LCI International, Inc. + 12,639,750
Telecommunication Equipment (2.6%)
- ------------------------------------------------------------------------------------------------
217,800 Premisys Communications, Inc. + 9,583,200
236,200 Tellabs, Inc. + 10,392,800
184,100 U.S. Robotics Corp. + 16,246,825
------------------
36,222,825
Transportation (0.9%)
- ------------------------------------------------------------------------------------------------
338,758 Fritz Companies, Inc. + 11,877,702
------------------
Total Common Stocks (cost $996,367,301) $1,241,042,229
SHORT TERM INVESTMENTS (12.7%)*
PRINCIPAL AMOUNT VALUE
- ------------------------------------------------------------------------------------------------
$20,000,000 Federal Home Loan Bank effective yield of 5.19%,
April 25, 1996 $ 19,755,467
50,000,000 Federal National Mortgage Association effective
yields of 5.20% to 5.52%, with various due dates
from February 13, 1996 to April 18, 1996 49,692,361
20,000,000 National Rural Utilities Cooperative Finance Corp.
effective yield of 5.63%, February 27, 1996 19,918,678
20,000,000 Morgan (J.P.) & Co., Inc. effective yield of 5.58%,
March 11, 1996 19,879,100
67,959,000 Interest in $942,854,000 joint repurchase agreement
dated January 31, 1996 with Morgan Stanley & Co.,
Inc. due February 1, 1996 with respect to various
U.S. Treasury obligations-maturity value of $67,970,043
for an effective yield of 5.85%. 67,970,043
------------------
Total Short Term Investments (cost $177,219,266) $ 177,215,649
- ------------------------------------------------------------------------------------------------
Total Investments (cost $1,173,586,567) *** $1,418,257,878
- ------------------------------------------------------------------------------------------------
* Percentages indicated are based on net assets of $1,395,820,302.
+ Non-income-producing security.
*** The aggregate identified cost for federal income tax purposes is $1,175,105,490, resulting
in gross unrealized appreciation and depreciation of $268,373,122 and $25,220,734, respectively,
or net unrealized appreciation of $243,152,388.
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.
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of assets and liabilities
January 31,1996 (Unaudited)
<S> <C>
Assets
- ---------------------------------------------------------------------------------------------------
Investments in securities, at value
(identified cost $ 1,173,586,567) (Note 1) $1,418,257,878
- ---------------------------------------------------------------------------------------------------
Cash 134
- ---------------------------------------------------------------------------------------------------
Dividends and interest receivables 62,874
- ---------------------------------------------------------------------------------------------------
Receivable for shares of the fund sold 4,349,975
- ---------------------------------------------------------------------------------------------------
Receivable for securities sold 30,824,590
- ---------------------------------------------------------------------------------------------------
Other assets 25,333
- ---------------------------------------------------------------------------------------------------
Total assets 1,453,520,784
Liabilities
- ---------------------------------------------------------------------------------------------------
Distributions payable to shareholders 39,601
- ---------------------------------------------------------------------------------------------------
Payable for securities purchased 52,731,413
- ---------------------------------------------------------------------------------------------------
Payable for shares of the fund repurchased 1,772,122
- ---------------------------------------------------------------------------------------------------
Payable for compensation of Manager (Note 2) 1,907,886
- ---------------------------------------------------------------------------------------------------
Payable for compensation of Trustees (Note 2) 1,179
- ---------------------------------------------------------------------------------------------------
Payable for administrative services (Note 2) 2,095
- ---------------------------------------------------------------------------------------------------
Payable for distribution fees (Note 2) 482,209
- ---------------------------------------------------------------------------------------------------
Payable for investor servicing and custodian fees (Note 2) 594,115
- ---------------------------------------------------------------------------------------------------
Other accrued expenses 169,862
- ---------------------------------------------------------------------------------------------------
Total liabilities 57,700,482
- ---------------------------------------------------------------------------------------------------
Net assets $1,395,820,302
Represented by
- ---------------------------------------------------------------------------------------------------
Paid-in-capital (Note 4) $1,112,430,235
- ---------------------------------------------------------------------------------------------------
Accumulated net investment loss (Note 1) (579,898)
- ---------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments (Note 1) 39,298,654
- ---------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments 244,671,311
- ---------------------------------------------------------------------------------------------------
Total - Representing net assets applicable to
capital shares outstanding $1,395,820,302
Computation of net asset value and offering price
- ---------------------------------------------------------------------------------------------------
Net asset value and redemption price of class A shares
($989,131,588 divided by 109,230,473 shares) $9.06
- ---------------------------------------------------------------------------------------------------
Offering price per Class A share (100/94.25 of $9.06) * $9.61
- ---------------------------------------------------------------------------------------------------
Net asset value and offering price of class B shares
($345,575,057 divided by 39,013,791 shares) ** $8.86
- ---------------------------------------------------------------------------------------------------
Net asset value and redemption price of class M shares
($10,561,842 divided by 1,172,937 shares) $9.00
- ---------------------------------------------------------------------------------------------------
Offering price per Class M share (100/96.50 of $9.00) * $9.33
- ---------------------------------------------------------------------------------------------------
Net asset value, offering and redemption price of class Y shares
($50,551,815 divided by 5,564,923 shares) $9.08
- ---------------------------------------------------------------------------------------------------
* 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.
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
Six months ended January 31,1996 (Unaudited)
<S> <C>
Investment Income:
- ---------------------------------------------------------------------------------------------------
Dividends (net of foreign tax of $8,578) $ 3,578,579
- ---------------------------------------------------------------------------------------------------
Interest 2,712,708
- ---------------------------------------------------------------------------------------------------
Total investment income 6,291,287
Expenses:
- ---------------------------------------------------------------------------------------------------
Compensation of Manager (Note 2) 3,713,125
- ---------------------------------------------------------------------------------------------------
Investor Servicing and custodian fees (Note 2) 1,259,083
- ---------------------------------------------------------------------------------------------------
Compensation of Trustees (Note2) 14,246
- ---------------------------------------------------------------------------------------------------
Reports to shareholders 48,349
- ---------------------------------------------------------------------------------------------------
Auditing 21,425
- ---------------------------------------------------------------------------------------------------
Legal 8,247
- ---------------------------------------------------------------------------------------------------
Postage 53,944
- ---------------------------------------------------------------------------------------------------
Registration Fees 92,564
- ---------------------------------------------------------------------------------------------------
Administrative services (Note 2) 12,659
- ---------------------------------------------------------------------------------------------------
Distribution fees - Class A (Note 2) 1,161,569
- ---------------------------------------------------------------------------------------------------
Distribution fees - Class B (Note 2) 1,508,853
- ---------------------------------------------------------------------------------------------------
Distribution fees - Class M (Note 2) 19,232
- ---------------------------------------------------------------------------------------------------
Other expenses 25,822
- ---------------------------------------------------------------------------------------------------
Total expenses 7,939,118
- ---------------------------------------------------------------------------------------------------
Expense reduction (Note 2) (153,286)
- ---------------------------------------------------------------------------------------------------
Net expenses 7,785,832
- ---------------------------------------------------------------------------------------------------
Net investment loss (1,494,545)
- ---------------------------------------------------------------------------------------------------
Net realized gain on investments (Notes 1 and 3) 114,946,507
- ---------------------------------------------------------------------------------------------------
Net unrealized depreciation of investments during the period (16,873,295)
- ---------------------------------------------------------------------------------------------------
Net gain on investments 98,073,212
- ---------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $96,578,667
- ---------------------------------------------------------------------------------------------------
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
January 31 July 31
1996* 1995
<S> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Increase in net assets
- --------------------------------------------------------------------------------------------------------------------
Operations:
- --------------------------------------------------------------------------------------------------------------------
Net investment income (loss) $ (1,494,545) $ 972,604
- ------------------------------------------------------------------------------------------------- -------------------
Net realized gain on investments 114,946,507 49,546,498
- ------------------------------------------------------------------------------------------------- ------------------
Net unrealized appreciation (depreciation) of investments (16,873,295) 216,175,777
- ------------------------------------------------------------------------------------------------- ------------------
Net increase in net assets resulting from operations 96,578,667 266,694,879
- --------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
- --------------------------------------------------------------------------------------------------------------------
From net realized gain on investments:
Class A (84,336,334) (5,157,873)
- ------------------------------------------------------------------------------------------------- ------------------
Class B (28,566,026) (1,221,982)
- --------------------------------------------------------------------------------------------------------------------
Class M (651,961) (322)
- ------------------------------------------------------------------------------------------------- ------------------
Class Y (4,309,704) -
- ------------------------------------------------------------------------------------------------- ------------------
Increase from capital share transactions (Note 4) 253,314,724 124,069,453
- ------------------------------------------------------------------------------------------------- ------------------
Total increase in net assets 232,029,366 384,384,155
- ------------------------------------------------------------------------------------------------- ------------------
Net assets
- ------------------------------------------------------------------------------------------------- ------------------
Beginning of period 1,163,790,936 779,406,781
- ------------------------------------------------------------------------------------------------- ------------------
End of period (including accumulated net investment loss
and undistributed net investment income of $579,898
and $914,647, respectively) $1,395,820,302 $1,163,790,936
- --------------------------------------------------------------------------------------------------------------------
* Unaudited.
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
(For a share outstanding throughout the period)
- ----------------------------------------------------------------------------------------------------------
Six March 28, 1995 Six December 8, 1994
months (commencement of months (commencement of Six months
ended operations) to ended operations) to ended
January 31 July 31 January 31 July 31 January 31
- ----------------------------------------------------------------------------------------------------------
1996+ 1995 1996+ 1995 1996+
- ----------------------------------------------------------------------------------------------------------
Class Y Class M
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $9.24 $7.83 $9.19 $6.73 $9.08
- ----------------------------------------------------------------------------------------------------------
Investment operations
- ----------------------------------------------------------------------------------------------------------
Net investment
income (loss) .01 .01 (.01) (.01) (.02)
- ----------------------------------------------------------------------------------------------------------
Net realized and
unrealized gain
on investments .69 1.40 .68 2.53 .66
- ----------------------------------------------------------------------------------------------------------
Total from investment
operations .70 1.41 .67 2.52 .64
- ----------------------------------------------------------------------------------------------------------
Distributions to
shareholders:
- ----------------------------------------------------------------------------------------------------------
From net investment
income -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------
From net realized gain
on investments (.86) -- (.86) (.06) (.86)
- ----------------------------------------------------------------------------------------------------------
In excess of net realized
gain on investments -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Paid-in capital -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Total distributions (.86) -- (.86) (.06) (.86)
- ----------------------------------------------------------------------------------------------------------
Net asset value,
end of period $9.08 $9.24 $9.00 $9.19 $8.86
- ----------------------------------------------------------------------------------------------------------
Total investment
return at net asset
value (%)(a) 8.03(c) 18.01(c) 7.75(c) 37.63(c) 7.51(c)
- ----------------------------------------------------------------------------------------------------------
Net assets,
end of period
(in thousands) $50,552 $42,717 $10,562 $3,148 $345,575
- ----------------------------------------------------------------------------------------------------------
Ratio of expenses
to average
net assets (%) (b) .41(c) .29(c) .75(c) 1.06(c) .92(c)
- ----------------------------------------------------------------------------------------------------------
Ratio of net investment
income (loss) to average
net assets (%) .09(c) .10(c) (.26)(c) (.31)(c) (.41)(c)
- ----------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 62.34(c) 114.51 62.34(c) 114.51 62.34(c)
- ----------------------------------------------------------------------------------------------------------
<CAPTION>
Financial Highlights (Continued)
- --------------------------------------------------------------------------------------------
March 1, 1994 Six
(commencement months
operations) to ended
Year ended July 31 July 31* January 31
- --------------------------------------------------------------------------------------------
1995 1994 1993 1996*
- --------------------------------------------------------------------------------------------
Class B
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value,
beginning of period $7.03 $7.46 $7.12 $9.23
- --------------------------------------------------------------------------------------------
Investment operations
- --------------------------------------------------------------------------------------------
Net investment
income (loss) (.03) .01 (.01) (.01)
- --------------------------------------------------------------------------------------------
Net realized and
unrealized gain
on investments 2.14 .15 .40 .70
- --------------------------------------------------------------------------------------------
Total from investment
operations 2.11 .16 .39 .69
- --------------------------------------------------------------------------------------------
Distributions to
shareholders:
- --------------------------------------------------------------------------------------------
From net investment
income -- (.02) (.05) --
- --------------------------------------------------------------------------------------------
From net realized gain
on investments (.06) (.55) -- (.86)
- --------------------------------------------------------------------------------------------
In excess of net realized
gain on investments -- (.01) -- --
- --------------------------------------------------------------------------------------------
Paid-in capital -- (.01) -- --
- --------------------------------------------------------------------------------------------
Total distributions (.06) (.59) (.05) (.86)
- --------------------------------------------------------------------------------------------
Net asset value,
end of period $9.08 $7.03 $7.46 $9.06
- --------------------------------------------------------------------------------------------
Total investment
return at net asse
value (%)(a) 30.19 1.89 5.45(c) 7.94(c)
- --------------------------------------------------------------------------------------------
Net assets,
end of period
(in thousands) $258,522 $132,596 $20,722 $989,132
- --------------------------------------------------------------------------------------------
Ratio of expenses
to average
net assets (%) (b) 1.82 1.87 .72(c) .54(c)
- --------------------------------------------------------------------------------------------
Ratio of net investment
income (loss) to average
net assets (%) (.51) (.53) (.07)(c) (.03)(c)
- --------------------------------------------------------------------------------------------
Portfolio turnover (%) 114.51 93.86 120.57 62.34(c)
- --------------------------------------------------------------------------------------------
<CAPTION>
Financial Highlights (Continued)
(For a share outstanding throughout the period)
- ----------------------------------------------------------------------------------------------------
Year ended July 31
- ----------------------------------------------------------------------------------------------------
1995 1994 1993 1992 1991
- ----------------------------------------------------------------------------------------------------
Class A
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $7.09 $7.47 $7.59 $6.97 $6.48
- ----------------------------------------------------------------------------------------------------
Investment operations
- ----------------------------------------------------------------------------------------------------
Net investment
income (loss) .02 .01 .07 .14 .17
- ----------------------------------------------------------------------------------------------------
Net realized and
unrealized gain
on investments 2.18 .21 1.28 1.07 .68
- ----------------------------------------------------------------------------------------------------
Total from investment
operations 2.20 .22 1.35 1.21 .85
- ----------------------------------------------------------------------------------------------------
Distributions to
shareholders:
- ----------------------------------------------------------------------------------------------------
From net investment
income -- (.03) (.12) (.19) (.10)
- ----------------------------------------------------------------------------------------------------
From net realized gain
on investments (.06) (.55) (1.35) (.40) (.26)
- ----------------------------------------------------------------------------------------------------
In excess of net realized
gain on investments -- (.01) -- -- --
- ----------------------------------------------------------------------------------------------------
Paid-in capital -- (.01) -- -- --
- ----------------------------------------------------------------------------------------------------
Total distributions (.06) (.60) (1.47) (.59) (.36)
- ----------------------------------------------------------------------------------------------------
Net asset value,
end of period $9.23 $7.09 $7.47 $7.59 $6.97
- ----------------------------------------------------------------------------------------------------
Total investment
return at net asset
value (%)(a) 31.22 2.75 19.63 18.46 14.27
- ----------------------------------------------------------------------------------------------------
Net assets,
end of period
(in thousands) $859,403 $646,811 $439,722 $336,360 $287,712
- ----------------------------------------------------------------------------------------------------
Ratio of expenses
to average
net assets (%) (b) 1.07 1.09 .96 .96 .99
- ----------------------------------------------------------------------------------------------------
Ratio of net investment
income (loss) to average
net assets (%) .26 .29 1.08 1.92 2.73
- ----------------------------------------------------------------------------------------------------
Portfolio turnover (%) 114.51 93.86 120.57 143.92 75.89
- ----------------------------------------------------------------------------------------------------
.
* Unaudited
** Per share net investment income has been determined on the basis of weighted average
number of shares outstanding during the period.
(a) Total investment return assumes dividend reinvestment and does not reflect the effect
of sales charges.
(b) The ratio of expenses to average net assets for the six months ended January 31, 1996
includes amounts paid through expense offset and brokerage service arrangements. Prior period
ratios exclude these amounts (See Note 2).
(c) Not annualized.
</TABLE>
Notes to financial statements
January 31, 1996 (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 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 a distribution fee that is lower than class B shares
and higher than class A shares. Class Y shares, which are sold at net
asset value, are generally subject to the same expenses as class A
shares, class B shares, 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 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. The preparation of financial statements are in
conformity with generally accepted accounting principles and require
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities. Actual results could differ from
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, 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., ("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 102% of 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
102% of 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
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. 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 from net
investment income are recorded by the fund on the ex-dividend date.
Capital gain distributions, if any, are recorded on ex-dividend date and
paid 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.
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, credits allowed by PFTC 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 Putnam Management on the fund's portfolio transactions.
The fund reimburses Putnam Management for the compensation and related
expenses of certain officers of the fund and their staff who provide
administrative 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 $2,460 and an
additional fee for each Trustees' meeting attended. Trustees who are not
interested persons of the Putnam Management and who serve on committees
of the Trustees receive additional fees for attendance at certain
committee meetings.
The fund 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.
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 January 31, 1996, fund expenses were reduced by
$153,286 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 the 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 January 31, 1996, Putnam Mutual Funds Corp.,
acting as underwriter received net commissions of $306,015 and $12,091
from the sale of class A and class M shares, respectively and received
$201,095 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 January 31,
1996, Putnam Mutual Funds Corp., acting as underwriter received $8,297
on class A redemptions.
Note 3
Purchases and sales of securities
During the six months ended January 31, 1996, purchases and sales of
investment securities other than U.S. government obligations and short-
term investments aggregated $788,342,799 and $743,223,568, 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.
Note 4
Capital shares
At January 31, 1996, there was an unlimited number of shares of
beneficial interest authorized. Transactions in capital shares were as
follows:
Six months ended
January 31, 1996
- ------------------------------------------------------------------------
Class A Shares Amount
- ------------------------------------------------------------------------
Shares sold 23,469,698 $219,010,582
- ------------------------------------------------------------------------
Shares issued in
connection with
reivestment of
distributions 9,127,118 78,493,178
- ------------------------------------------------------------------------
32,596,816 297,503,760
Shares
repurchased (16,481,645) (154,153,278)
- ------------------------------------------------------------------------
Net increase 16,115,171 $143,350,482
- ------------------------------------------------------------------------
Year ended
July 31, 1995
- ------------------------------------------------------------------------
Class A Shares Amount
- ------------------------------------------------------------------------
Shares sold 28,898,970 $221,037,781
- ------------------------------------------------------------------------
Shares issued in
connection with
reivestment of
distributions 693,411 4,819,179
- ------------------------------------------------------------------------
29,592,381 225,856,960
Shares
repurchased (27,694,506) (213,117,464)
- ------------------------------------------------------------------------
Net increase 1,897,875 $12,739,496
- ------------------------------------------------------------------------
Six months ended
January 31, 1996
- ------------------------------------------------------------------------
Class B Shares Amount
- ------------------------------------------------------------------------
Shares sold 10,484,624 $95,683,867
- ------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 3,126,503 26,325,175
- ------------------------------------------------------------------------
13,611,127 122,009,042
Shares
repurchased (3,071,621) (28,151,693)
- ------------------------------------------------------------------------
Net increase 10,539,506 $93,857,349
- ------------------------------------------------------------------------
Year ended
July 31, 1995
- ------------------------------------------------------------------------
Class B Shares Amount
- ------------------------------------------------------------------------
Shares sold 15,020,047 $113,538,226
- ------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 163,723 1,124,785
- ------------------------------------------------------------------------
15,183,770 114,663,011
Shares
repurchased (5,573,148) (42,071,973)
- ------------------------------------------------------------------------
Net increase 9,610,622 $72,591,038
- ------------------------------------------------------------------------
Six months ended
January 31, 1996
- ------------------------------------------------------------------------
Class M Shares Amount
- ------------------------------------------------------------------------
Shares sold 845,122 $7,803,038
Shares issued in
connection with
reinvestment of
distributions 74,312 635,366
- ------------------------------------------------------------------------
919,434 8,438,404
Shares
repurchased (89,102) (846,901)
- ------------------------------------------------------------------------
Net increase 830,332 $7,591,503
- ------------------------------------------------------------------------
December 8, 1994
(commencement of
operations) to
July 31, 1995
- -----------------------------------------------------------------------
Class M Shares Amount
- -----------------------------------------------------------------------
Shares sold 394,997 $3,133,513
- -----------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 44 307
- -----------------------------------------------------------------------
395,041 3,133,820
Shares
repurchased (52,436) (406,029)
- -----------------------------------------------------------------------
Net increase 342,605 $2,727,791
- -----------------------------------------------------------------------
Six months ended
January 31, 1996
- -----------------------------------------------------------------------
Class Y Shares Amount
- -----------------------------------------------------------------------
Shares sold 1,233,626 $11,605,267
- -----------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 498,926 4,305,736
- -----------------------------------------------------------------------
1,732,552 15,911,003
Shares
repurchased (789,221) (7,395,613)
- -----------------------------------------------------------------------
Net increase 943,331 $8,515,390
- -----------------------------------------------------------------------
March 28, 1995
(commencement of
operations) to
July 31, 1995
- -----------------------------------------------------------------------
Class Y Shares Amount
- -----------------------------------------------------------------------
Shares sold 8,556,775 $66,694,577
- -----------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions -- --
- -----------------------------------------------------------------------
8,556,775 66,694,577
Shares
repurchased (3,935,183) (30,683,449)
- -----------------------------------------------------------------------
Net increase 4,621,592 $36,011,128
- -----------------------------------------------------------------------
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
Eli Shapiro
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
John J. Morgan
Vice President
Jennifer Silver
Vice President and Fund Manager
Michael J. Mufson
Vice President and Fund Manager
Anthony C. Santosus
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 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 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.
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.
PUTNAM INVESTMENTS
The Putnam Funds
One Post Office Square
Boston, Massachusetts 02109
- ------------------
Bulk Rate
U.S. Postage
PAID
Putnam
Investments
- ------------------
23308 006/317/515 3/96
