Putnam
Vista
Fund
ANNUAL REPORT ON PERFORMANCE AND OUTLOOK
7-31-99
[LOGO: BOSTON * LONDON * TOKYO]
From the Chairman
[GRAPHIC OMITTED: PHOTO OF GEORGE PUTNAM]
[copyright] Karsh, Ottawa
Dear Shareholder:
As I read the management report for Putnam Vista Fund's fiscal 1999, two
observations made by the managers struck me as being particularly
noteworthy. One was the amount of speculative trading activity that has
tended to skew the market's performance in recent months. The other was
the dramatic rise in the capitalizations of many of the midsize companies
in which your fund invests. For some the surge in value stemmed from
active day trading; for others the cause was the economy's continued
growth or the market's recognition of their fundamental value.
Among the consequences of these rising valuations was that a number of
companies represented in your fund's portfolio outgrew the fund's size
parameters, and the holdings were sold in order to maintain a proper
balance. On the bright side, the fund was able to take significant profits
on many of the transactions and capitalize on other opportunities that
presented themselves.
I believe you will find the following discussion of these and other
highlights of fiscal 1999 both interesting and informative.
Respectfully yours,
/S/GEORGE PUTNAM
George Putnam
Chairman of the Trustees
September 15, 1999
Report from the Fund Managers
Eric Wetlaufer
Anthony C. Santosus
Dana Clark
Margery Parker
Stocks of midsize companies, such as those that make up Putnam Vista
Fund's portfolio, achieved strong gains for the year ended July 31, 1999,
despite investors' insatiable appetite for large-cap stocks and the more
speculative Internet stocks. Midsize companies tend to be nimble and
entrepreneurial, with more business experience than their smaller
counterparts and more potential for dramatic earnings growth than larger,
more established companies. This is reflected in the fund's healthy
performance for the 12 months ended July 31, 1999.
Total return for 12 months ended 7/31/99
Class A Class B Class C Class M
NAV POP NAV CDSC NAV CDSC NAV POP
- -----------------------------------------------------------------------
15.08% 8.48% 14.27% 9.27% 14.27% 13.27% 14.53% 10.52%
- -----------------------------------------------------------------------
Past performance is no indication of future results. Performance
information for longer periods begins on page 6.
* CURRENT TRENDS REDEFINING MID-CAP MARKET
Two trends have had a substantial impact on the performance of midsize
companies during the past year. The first is the continuing outperformance
of larger-company stocks. This trend is most evident in corporations with
more than $10 billion in market capitalization -- companies such as
Microsoft and IBM. But larger companies within the mid-cap universe are
also benefiting. As a result, some companies that began the fiscal year as
midsize companies appreciated so rapidly that they outgrew their mid-cap
universe.
For your fund, which focuses on companies with market capitalizations of
between $1 billion and $10 billion, this has resulted in the swift
appreciation of a handful of desirable but somewhat speculatively valued
stocks. Because of their rapid growth, these stocks became such a large
percentage of the total portfolio that we were on the verge of having an
unwise concentration of assets in too small a number of holdings. We held
three such stocks -- Yahoo, Schwab, and Amazon.com -- until June 30. At
that time, the fund's benchmark, the Russell Midcap Growth Index,
rebalanced and removed companies with a market capitalization greater than
$11 billion. Your fund followed suit, taking substantial profits on all
three companies.
[GRAPHIC OMITTED: horizontal bar chart TOP INDUSTRY SECTORS]
TOP INDUSTRY SECTORS*
Retail 8.9%
Electronics and
electrical equipment 8.3%
Pharmaceuticals
and biotechnology 7.1%
Computer
services 6.6%
Computer
software 6.5%
Footnote reads:
*Based on net assets as of 7/31/99. Holdings will vary over time.
The second trend affecting the fund is the high level of speculation in
the stock market today. Investors are increasingly divorcing their
decision-making from the time-consuming research of long-term fundamentals
and opting instead for quick profits in the hottest names. Internet stocks
are a prime example. VeriSign Inc., which provides business-to-consumer
Internet security, and Intuit Inc., which offers tax planning and
financial accounting software as well as a financial services Web site,
are two examples of companies that we expect will prosper on their own
merits over the long term. While these and other holdings were viewed
favorably at the end of the fiscal period, all portfolio holdings are
subject to review and adjustment in accordance with the fund's investment
strategy and may vary in the future.
* TELECOM, ADVERTISING, RETAIL BOOST FUND RESULTS
The growth of the telecommunications industry has long been regarded as
one of the primary reasons for the staying power of the current economic
expansion. In 1998, the fund benefited from its cable holdings, as
companies such as Comcast (which we recently sold) and Cablevision
participated in the race for bigger, faster connections. Building on the
success of broadband, the high-speed system for transmitting data, many
companies merged or grew in market capitalization, passing well beyond the
market capitalization range of your fund.
In 1999, we are finding similar opportunities in cellular communication.
One example is QUALCOMM, a wireless-network provider and cellular phone
maker. The company receives royalties for its patented cell division
multiple access (CDMA), the digitized cellular standard for passing
information. We bought the stock early in January after the company
announced layoffs to help increase earnings. Since then, an unprofitable
infrastructure division has been sold and some patent disputes have been
settled -- and the stock price has skyrocketed.
"At Putnam, we believe painstaking research into a company's business
potential and its relative position in its market are the most effective
way to identify winners regardless of how the stock market performs day
to day."
- -- Eric Wetlaufer, manager
Putnam Vista Fund
The advertising and retail industries are benefiting from the stronger
economy and a booming stock market. Corporations of all sizes have been
big purchasers of advertising to build recognition of their products,
attract traffic to their Internet sites, and ultimately expand revenues.
Fund holdings Young and Rubicam and Omnicom Group, Inc. are two
advertisers with the global exposure to build brand awareness effectively
for their clients. In the retail sector, Abercrombie & Fitch Co. is
experiencing healthy growth in same-store sales. Estee Lauder, which owns
a majority of department store makeup counters, successfully uses its
negotiating power to gain the best floor space and to win economies of
scale with packaging companies. Discount retailers TJX Cos. and Family
Dollar Stores have effectively positioned themselves in their respective
markets.
* HEALTH-CARE, FINANCIAL STOCKS TRAIL
Health-care investments struggled during the period as investors worried
that increased regulations and the rising costs of drugs, equipment, and
trained personnel would depress future earnings. Large drug companies and
insurance companies also experienced an earnings deceleration. As a
result, we have trimmed the fund's exposure to drug and health-care
service companies and invested the proceeds in biotechnology companies.
Fund holdings Immunex, Biogen, and Allergan are active in the research of
gene splicing and the development of newer, more effective drugs.
[GRAPHIC OMITTED: TOP 10 HOLDINGS]
TOP 10 HOLDINGS
VERITAS Software Corp.
Computer software
Estee Lauder Cos. Class A
Cosmetics
QUALCOMM, Inc.
Telecommunications equipment
Solectron Corp.
Electronics and electrical equipment
Jabil Circuit, Inc.
Electronics and electrical equipment
Comverse Technology, Inc.
Computer services
VeriSign, Inc.
Computer services
Maxim Integrated Products, Inc.
Semiconductors
Teradyne, Inc.
Electronics and electrical equipment
Symbol Technologies, Inc.
Computer equipment
Footnote reads:
These holdings represent 19.4% of the fund's net assets as of 7/31/99.
Portfolio holdings will vary over time.
The rise in interest rates took a toll on financial stocks in the second
half of the fiscal year. The fund was slightly overweighted in this group
of stocks, but we remain optimistic about the sector's prospects. The
holding of Zions Bancorp, which is headquartered in Salt Lake City, has
become a supra-regional bank through the purchase of smaller banks in
California and Nevada. We believe Zions is well positioned to benefit from
the Winter Olympic games in 2001. The fund is also invested in Paine
Webber, which is primarily focused on asset management for the individual
investor.
* FUND FAVORS STEADY GROWTH OVER SPORADIC PERFORMANCE BURSTS
The investment playing field is being forever changed by the speculative
nature of investing today. It makes for an exciting marketplace, but we
prefer to take a systematic and disciplined approach to our stock
selections. You might say it is a modern-day version of the fable about
the hare and the tortoise. It is tempting to hop to whatever is hot. But
we believe successful investing means anticipating change before it
becomes broadly evident in the market. That takes steady, thorough
research and highly developed quantitative tools to test new ideas.
In the months ahead, we expect a continuation of the very same qualities
that have made the past year so productive -- namely, a vigilant Federal
Reserve Board, low inflation, high employment, and a buoyant consumer. We
are excited about prospects for the next year and believe that midsize
companies are well positioned to make their contribution in the new
millennium.
The views expressed here are exclusively those of Putnam Management. They
are not meant as investment advice. Although the described holdings were
viewed favorably as of 7/31/99, there is no guarantee the fund will
continue to hold these securities in the future. This fund invests all or
a portion of its assets in small to midsize companies. Such investments
increase the risk of greater price fluctuations.
Performance summary
This section provides information about your fund's performance, which should
always be considered in light of its investment strategy. Putnam Vista Fund
is designed for investors seeking capital appreciation primarily through
common stocks.
<TABLE>
<CAPTION>
TOTAL RETURN FOR PERIODS ENDED 7/31/99
Class A Class B Class C Class M
(inception dates) (6/3/68) (3/1/93) (7/26/99) (12/8/94)
NAV POP NAV CDSC NAV CDSC NAV POP
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 year 15.08% 8.48% 14.27% 9.27% 14.27% 13.27% 14.53% 10.52%
- ----------------------------------------------------------------------------------------------
5 years 180.52 164.48 170.36 168.36 170.22 170.22 173.91 164.23
Annual average 22.91 21.47 22.01 21.83 22.00 22.00 22.33 21.45
- ----------------------------------------------------------------------------------------------
10 years 381.46 353.77 345.74 345.74 346.51 346.51 356.78 340.80
Annual average 17.02 16.33 16.12 16.12 16.14 16.14 16.40 15.99
- ----------------------------------------------------------------------------------------------
Annual average
(Life of fund) 11.78 11.57 10.74 10.74 10.94 10.94 11.02 10.89
- ----------------------------------------------------------------------------------------------
</TABLE>
COMPARATIVE INDEX RETURNS FOR PERIODS ENDED 7/31/99
Russell Midcap Consumer
Growth Index price index
- -----------------------------------------------------------------------------
1 year 21.69% 2.14%
- -----------------------------------------------------------------------------
5 years 158.26 12.33
Annual average 20.90 2.35
- -----------------------------------------------------------------------------
10 years 332.96 34.00
Annual average 15.79 2.97
- -----------------------------------------------------------------------------
Annual average
(Life of fund) --* 5.18
- -----------------------------------------------------------------------------
*The index did not exist at the time of the fund's inception.
Past performance is no assurance of future results. More recent returns
may be more or less than those shown. Returns for class A and class M
shares reflect the current maximum initial sales charges of 5.75% and
3.50%, respectively. Class B share returns for the 1-, 5- and 10-year
(where available) and life-of-fund periods reflect the applicable
contingent deferred sales charge (CDSC), which is 5% in the first year,
declines to 1% in the sixth year, and is eliminated thereafter. Returns
shown for class B and class M shares for periods prior to their inception
are derived from the historical performance of class A shares, adjusted to
reflect both the initial sales charge or CDSC, if any, currently
applicable to each class and in the case of class B and class M shares the
higher operating expenses applicable to such shares. For class C shares,
returns for periods prior to their inception are derived from the
historical performance of class A shares, adjusted to reflect both the
CDSC currently applicable to class C shares, which is 1% for the first
year and is eliminated thereafter, and the higher operating expenses
applicable to class C shares. All returns assume reinvestment of
distributions at NAV. Investment return and principal value will fluctuate
so that an investor's shares when redeemed may be worth more or less than
their original cost.
[GRAPHIC OMITTED: worm chart GROWTH OF A $10,000 INVESTMENT]
GROWTH OF A $10,000 INVESTMENT
Cumulative total return of a $10,000 investment since 7/31/89
Fund's class A Russell Midcap Consumer price
Date shares at POP Growth Index index
7/31/89 9,425 10,000 10,000
7/31/90 9,722 10,589 10,482
7/31/91 11,108 12,610 10,949
7/31/92 13,159 14,068 11,294
7/31/93 15,743 15,930 11,608
7/31/94 16,176 16,764 11,929
7/31/95 21,226 21,921 12,259
7/31/96 24,757 23,509 12,261
7/31/97 33,732 32,841 12,902
7/31/98 39,432 35,578 13,119
7/31/99 $45,377 $43,296 $13,400
Footnote reads:
Past performance is no assurance of future results. At the end of the same
time period, a $10,000 investment in the fund's class B or class C shares
would have been valued at $44,574 and $44,651, respectively and no
contingent deferred sales charges would apply; a $10,000 investment in the
fund's class M shares would have been valued at $45,678 ($44,080 at public
offering price). See first page of performance section for performance
calculation method.
PRICE AND DISTRIBUTION INFORMATION 12 MONTHS ENDED 7/31/99
Class A Class B Class C Class M
- -----------------------------------------------------------------------------
Distributions (number) 1 1 -- 1
- -----------------------------------------------------------------------------
Income $-- $-- $-- $--
- -----------------------------------------------------------------------------
Capital gains
Long-term 1.028 1.028 -- 1.028
- -----------------------------------------------------------------------------
Short-term -- -- -- --
- -----------------------------------------------------------------------------
Total $1.028 $1.028 $-- $1.028
- -----------------------------------------------------------------------------
Share value: NAV POP NAV NAV NAV POP
- -----------------------------------------------------------------------------
7/31/98 $13.49 $14.31 $12.89 $-- $13.22 $13.70
- -----------------------------------------------------------------------------
7/26/99* -- -- -- 14.54 -- --
- -----------------------------------------------------------------------------
7/31/99 14.30 15.17 13.51 14.30 13.92 14.42
- -----------------------------------------------------------------------------
*Inception date of class C shares.
<TABLE>
<CAPTION>
TOTAL RETURN FOR PERIODS ENDED 6/30/99 (most recent calendar quarter)
Class A Class B Class C Class M
(inception dates) (6/3/68) (3/1/93) (7/26/99) (12 /8/94)
NAV POP NAV CDSC NAV CDSC NAV POP
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 year 14.97% 8.34% 14.12% 9.12% 14.07% 13.07% 14.37% 10.39%
- --------------------------------------------------------------------------------------------------
5 years 197.60 180.45 186.95 184.95 186.45 186.45 190.16 180.00
Annual average 24.37 22.91 23.47 23.30 23.43 23.43 23.75 22.87
- --------------------------------------------------------------------------------------------------
10 years 427.06 396.75 387.63 387.63 388.93 388.93 399.82 382.32
Annual average 18.08 17.39 17.17 17.17 17.20 17.20 17.46 17.04
- --------------------------------------------------------------------------------------------------
Annual average
(Life of fund) 11.92 11.70 10.87 10.87 11.07 11.07 11.15 11.03
- --------------------------------------------------------------------------------------------------
Past performance is no assurance of future results. More recent returns
may be more or less than those shown. They do not take into account any
adjustment for taxes payable on reinvested distributions. Investment
returns and principal value will fluctuate so that an investor's shares
when sold may be worth more or less than their original cost. See first
page of performance section for performance calculation method.
</TABLE>
Terms and definitions
Total return shows how the value of the fund's shares changed over time,
assuming you held the shares through the entire period and reinvested all
distributions in the fund.
Class A shares are generally subject to an initial sales charge.
Class B shares may be subject to a sales charge upon redemption.
Class C shares are not subject to an initial sales charge and are subject
to a contingent deferred sales charge only if the shares are redeemed
during the first year.
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 5.75% maximum 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 or C shares and assumes redemption at the end of
the period. Your fund's class B 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. The CDSC for class C shares is 1% for one year after
purchase.
Comparative benchmarks
Russell Midcap Growth Index measures the performance of those Russell
Midcap companies with higher price-to-book ratios and higher forecasted
growth rates.The index assumes reinvestment of all distributions and
interest payments and does not take into account brokerage fees or taxes.
Securities in the fund do not match those in the index and performance of
the fund will differ. It is not possible to invest directly in an index.
Consumer price index (CPI) is a commonly used measure of inflation; it
does not represent an investment return.
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A guide to the financial statements
These sections of the report, preceded by the Report of independent
accountants, constitute the fund's financial statements.
The fund's portfolio lists all the fund's investments and their values as
of the last day of the reporting period. Holdings are organized by asset
type and industry sector, country, or state to show areas of concentration
and diversification.
Statement of assets and liabilities shows how the fund's net assets and
share price is determined. All investment and non-investment assets are
added together. Any unpaid expenses and other liabilities are subtracted
from this total. The result is divided by the number of shares to
determine the net asset value per share, which is calculated separately
for each class of shares. (For funds with preferred shares, the amount
subtracted from total assets includes the net assets allocated to
remarketed preferred shares.)
Statement of operations shows the fund's net investment gain or loss for
the reporting period. This is determined by adding up all the fund's
earnings -- from dividends and interest income -- and subtracting its
operating expenses. This statement also lists any net gain or loss the
fund realized on the sales of its holdings and -- for holdings that remain
in the portfolio -- any change in unrealized gains or losses over the
period.
Statement of changes in net assets shows how the fund's net assets were
affected by distributions to shareholders and by changes in the number of
the fund's shares. It lists distributions and their sources (net
investment income or realized capital gains) over the current reporting
period and the most recent fiscal year-end. The distributions listed here
may not match the sources listed in the Statement of operations because
the distributions are determined on a tax basis and may be paid in a
different period from the one in which they were earned.
Financial highlights provide an overview of the fund's investment results,
per-share distributions, expense ratios, net investment income ratios and
portfolio turnover in one summary table, reflecting the five most recent
reporting periods. In a semiannual report, the highlight table also
includes the current reporting period. For open-ended funds, a separate
table is provided for each share class.
Report of independent accountants
For the fiscal year ended July 31, 1999
To the Trustees and Shareholders of
Putnam Vista Fund
In our opinion, the accompanying statement of assets and liabilities,
including the fund's portfolio, and the related statements of operations
and of changes in net assets and the financial highlights present fairly,
in all material respects, the financial position of Putnam Vista Fund (the
"fund") at July 31, 1999, and the results of its operations, the changes
in its net assets and the financial highlights for the periods indicated,
in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the fund's management;
our responsibility is to express an opinion on these financial statements
based on our audits. We conducted our audits of these financial statements
in accordance with generally accepted auditing standards which require
that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that
our audits, which included confirmation of investments owned at July 31,
1999 by correspondence with the custodian, provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
Boston, Massachusetts
September 14, 1999
<TABLE>
<CAPTION>
The fund's portfolio
July 31, 1999
COMMON STOCKS (100.5%) (a)
NUMBER OF SHARES VALUE
<S> <C> <C>
Advertising (3.2%)
- --------------------------------------------------------------------------------------------------------------------------
1,358,500 Omnicom Group, Inc. $ 96,283,688
2,165,600 Young & Rubicam, Inc. 98,128,750
--------------
194,412,438
Airlines (1.2%)
- --------------------------------------------------------------------------------------------------------------------------
1,693,500 Continental Airlines, Inc. (NON) 71,973,750
Automotive Parts (0.8%)
- --------------------------------------------------------------------------------------------------------------------------
1,010,600 Lear Corp. (NON) 48,256,150
Banks (2.9%)
- --------------------------------------------------------------------------------------------------------------------------
1,886,300 Greenpoint Financial Corp. 61,068,963
93,912 M & T Bank Corp. 50,665,524
1,122,100 Zions Bancorp 65,081,800
--------------
176,816,287
Basic Industrial Products (1.2%)
- --------------------------------------------------------------------------------------------------------------------------
1,311,900 Danaher Corp. 74,860,294
Broadcasting (0.1%)
- --------------------------------------------------------------------------------------------------------------------------
64,800 Univision Communications Inc. Class A (NON) 4,487,400
Business Equipment and Services (3.3%)
- --------------------------------------------------------------------------------------------------------------------------
1,102,540 Cintas Corp. 70,700,378
3,047,000 Convergys Corp. (NON) 59,416,500
1,740,700 Ecolab Inc 74,197,338
--------------
204,314,216
Cable Television (0.2%)
- --------------------------------------------------------------------------------------------------------------------------
140,300 Cablevision Systems Corp. Class A 9,794,694
Chemicals (1.0%)
- --------------------------------------------------------------------------------------------------------------------------
1,339,100 Praxair, Inc. 61,765,988
Computer Equipment (2.7%)
- --------------------------------------------------------------------------------------------------------------------------
1,051,300 Lexmark International Group, Inc. Class A (NON) 66,231,900
2,613,600 Symbol Technologies, Inc. 102,747,150
--------------
168,979,050
Computer Services (6.6%)
- --------------------------------------------------------------------------------------------------------------------------
549,900 CMG Information Services, Inc. (NON) 50,693,906
1,468,510 Comverse Technology, Inc. (NON) 110,964,287
2,274,625 Fiserv, Inc. (NON) 67,812,258
1,395,800 Galileo International, Inc. 71,447,513
1,453,000 VeriSign, Inc. (NON) 107,703,625
--------------
408,621,589
Computer Software (6.5%)
- --------------------------------------------------------------------------------------------------------------------------
830,300 Intuit, Inc. (NON) 67,928,919
1,454,800 Macromedia, Inc. (NON) 50,736,150
1,678,900 Rational Software Corp. (NON) 56,033,288
867,300 Siebel Systems, Inc. (NON) 51,279,113
3,159,600 VERITAS Software Corp. (NON) 177,332,550
--------------
403,310,020
Computers (1.1%)
- --------------------------------------------------------------------------------------------------------------------------
1,163,600 Apple Computer, Inc. (NON) 64,797,975
Consumer Durable Goods (2.4%)
- --------------------------------------------------------------------------------------------------------------------------
2,970,000 Furniture Brands International, Inc. (NON) (AFF) 80,190,000
954,700 Maytag Corp. 66,470,988
--------------
146,660,988
Consumer Products (1.0%)
- --------------------------------------------------------------------------------------------------------------------------
2,066,400 Dial Corp. (The) 63,929,250
Cosmetics (2.1%)
- --------------------------------------------------------------------------------------------------------------------------
2,729,600 Estee Lauder Cos. Class A 129,826,600
Electric Utilities (1.1%)
- --------------------------------------------------------------------------------------------------------------------------
842,100 Florida Progress Corp. 34,473,469
1,565,400 IPALCO Enterprises, Inc. 33,558,263
--------------
68,031,732
Electronics and Electrical Equipment (8.3%)
- --------------------------------------------------------------------------------------------------------------------------
2,689,500 Jabil Circuit, Inc. (NON) 113,127,094
1,941,400 LSI Logic Corp. (NON) 97,676,688
1,812,800 Solectron Corp. (NON) 116,812,300
1,379,300 Teradyne, Inc. (NON) 102,844,056
1,330,400 Waters Corp. (NON) 79,491,400
--------------
509,951,538
Energy-Related (1.0%)
- --------------------------------------------------------------------------------------------------------------------------
815,300 Calpine Corp. (NON) 61,300,369
Entertainment (1.1%)
- --------------------------------------------------------------------------------------------------------------------------
3,137,600 Harrah's Entertainment, Inc. (NON) 66,870,100
Environmental Control (1.0%)
- --------------------------------------------------------------------------------------------------------------------------
2,983,100 Republic Services, Inc. (NON) 60,221,331
Financial Services (4.0%)
- --------------------------------------------------------------------------------------------------------------------------
945,000 Capital One Financial Corp. 43,824,375
1,643,900 Finova Group, Inc. 72,023,369
1,059,400 Investment Technology Group, Inc. 37,542,488
1,262,100 Paine Webber Group Inc. 50,484,000
2,365,500 TD Waterhouse Group, Inc. (NON) 41,100,563
--------------
244,974,795
Food and Beverages (1.3%)
- --------------------------------------------------------------------------------------------------------------------------
665,700 Flowers Industries, Inc. 11,108,869
1,666,800 U.S. Foodservice (NON) 70,734,825
--------------
81,843,694
Gas Pipelines (0.7%)
- --------------------------------------------------------------------------------------------------------------------------
1,067,500 Coastal Corp. 42,232,969
Health Care (2.3%)
- --------------------------------------------------------------------------------------------------------------------------
3,241,900 AmeriSource Health Corp. Class A (NON) (AFF) 90,773,200
4,252,800 HEALTHSOUTH Corp. (NON) 52,096,800
--------------
142,870,000
Lodging (1.1%)
- --------------------------------------------------------------------------------------------------------------------------
2,596,900 Starwood Hotels & Resorts Worldwide, Inc. 70,116,300
Medical Supplies and Devices (2.5%)
- --------------------------------------------------------------------------------------------------------------------------
1,869,100 Biomet, Inc. 67,988,513
851,000 VISX, Inc. (NON) 86,163,750
--------------
154,152,263
Networking (1.1%)
- --------------------------------------------------------------------------------------------------------------------------
540,800 Exodus Communications, Inc. (NON) 64,929,800
9,528 Juniper Networks, Inc. (NON) 1,547,705
--------------
66,477,505
Networking Equipment (1.0%)
- --------------------------------------------------------------------------------------------------------------------------
1,150,900 Network Appliance, Inc. (NON) 62,724,050
Oil and Gas (2.6%)
- --------------------------------------------------------------------------------------------------------------------------
1,097,800 Baker Hughes, Inc. 38,217,163
1,070,500 Burlington Resources Inc. 47,302,719
932,600 Cooper Cameron Corp. (NON) 33,806,750
893,100 Smith International, Inc. (NON) 38,738,213
--------------
158,064,845
Packaging and Containers (0.9%)
- --------------------------------------------------------------------------------------------------------------------------
880,200 Sealed Air Corp. (NON) 56,552,850
Pharmaceuticals and Biotechnology (7.1%)
- --------------------------------------------------------------------------------------------------------------------------
409,500 Allergan, Inc. 38,697,750
1,602,200 Alza Corp. (NON) 77,906,975
1,218,000 Biogen, Inc. (NON) 83,813,625
1,686,000 IDEXX Laboratories, Inc. (NON) 33,087,750
806,300 Immunex Corp. (NON) 91,011,113
42,100 Medimmune, Inc. (NON) 3,362,738
1,016,800 PE Corp.- PE Biosystems Group 57,004,350
1,610,900 Watson Pharmaceuticals, Inc. (NON) 55,475,369
--------------
440,359,670
Recreation (1.1%)
- --------------------------------------------------------------------------------------------------------------------------
1,477,300 Royal Caribbean Cruises Ltd. 69,433,100
Restaurants (1.8%)
- --------------------------------------------------------------------------------------------------------------------------
2,536,200 Darden Restaurants, Inc. 55,320,863
1,372,600 Tricon Global Restaurants, Inc. (NON) 55,847,663
--------------
111,168,526
Retail (8.9%)
- --------------------------------------------------------------------------------------------------------------------------
1,544,600 Abercrombie & Fitch Co. Class A (NON) 64,100,900
1,373,300 Ann Taylor Stores Corp. (NON) (AFF) 52,700,388
1,817,800 Circuit City Stores, Inc. 85,891,050
3,503,400 Family Dollar Stores, Inc. 73,352,438
533,300 Kohls Corp. (NON) 40,564,131
2,031,200 Linens 'N Things, Inc. (NON) (AFF) 93,943,000
911,800 Tandy Corp. 46,786,738
2,879,000 TJX Cos., Inc. (The) 95,186,938
--------------
552,525,583
Semiconductors (5.8%)
- --------------------------------------------------------------------------------------------------------------------------
2,612,900 Altera Corp. (NON) 94,717,625
1,422,800 Linear Technology Corp. 87,324,350
1,651,500 Maxim Integrated Products Inc. (NON) 105,799,219
1,064,700 Vitesse Semiconductor Corp. (NON) 68,007,713
--------------
355,848,907
Telecommunications (3.1%)
- --------------------------------------------------------------------------------------------------------------------------
1,071,000 Allegiance Telecom, Inc. (NON) 53,884,688
943,200 Frontier Corp. 52,288,650
945,800 Global TeleSystems Group, Inc. (NON) 30,147,375
1,936,618 McLeod, Inc. Class A (NON) 57,735,424
--------------
194,056,137
Telecommunications Equipment (3.2%)
- --------------------------------------------------------------------------------------------------------------------------
1,533,900 ADC Telecommunications Inc. (NON) 68,258,550
816,600 QUALCOMM, Inc. (NON) 127,389,600
--------------
195,648,150
Textiles (3.2%)
- --------------------------------------------------------------------------------------------------------------------------
1,568,160 Mohawk Industries, Inc. (NON) 43,810,470
3,223,300 Shaw Industries, Inc. (NON) 67,890,756
3,185,300 Westpoint Stevens, Inc. (NON) (AFF) 86,799,640
--------------
198,500,866
--------------
Total Common Stocks (cost $5,227,469,754) $6,196,731,969
SHORT-TERM INVESTMENTS (0.6%) (a) (cost $37,178,000)
PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------------------------------------------------------------
$37,178,000 Interest in $365,427,000 joint repurchase agreement
dated July 30, 1999 with Credit Suisse First Boston
due August 2, 1999 with respect to various U.S. Treasury
obligations -- maturity value of $37,193,615 for an
effective yield of 5.04% $ 37,178,000
- --------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $5,264,647,754) (b) $6,233,909,969
- --------------------------------------------------------------------------------------------------------------------------
(a) Percentages indicated are based on net assets of $6,164,353,908.
(b) The aggregate identified cost on a tax basis is $5,277,043,283, resulting in gross unrealized appreciation and
depreciation of $1,197,706,554 and $240,839,868, respectively, or net unrealized appreciation of $956,866,686.
(NON) Non-income-producing security.
(AFF) Affiliated Companies (Note 5).
ADR after the name of a foreign holding stands for American Depositary Receipts 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
July 31, 1999
<S> <C>
Assets
- -----------------------------------------------------------------------------------------------
Investments in securities, at value
(identified cost $5,264,647,754) (Note 1) $6,233,909,969
- -----------------------------------------------------------------------------------------------
Cash 583
- -----------------------------------------------------------------------------------------------
Dividends, interest, and other receivables 779,681
- -----------------------------------------------------------------------------------------------
Receivable for shares of the fund sold 80,356,063
- -----------------------------------------------------------------------------------------------
Receivable for securities sold 55,685,439
- -----------------------------------------------------------------------------------------------
Total assets 6,370,731,735
Liabilities
- -----------------------------------------------------------------------------------------------
Payable for securities purchased 105,726,709
- -----------------------------------------------------------------------------------------------
Payable for shares of the fund repurchased 88,871,198
- -----------------------------------------------------------------------------------------------
Payable for compensation of Manager (Note 2) 7,412,888
- -----------------------------------------------------------------------------------------------
Payable for investor servicing and custodian fees (Note 2) 1,440,725
- -----------------------------------------------------------------------------------------------
Payable for compensation of Trustees (Note 2) 112,832
- -----------------------------------------------------------------------------------------------
Payable for administrative services (Note 2) 11,946
- -----------------------------------------------------------------------------------------------
Payable for distribution fees (Note 2) 2,476,228
- -----------------------------------------------------------------------------------------------
Other accrued expenses 325,301
- -----------------------------------------------------------------------------------------------
Total liabilities 206,377,827
- -----------------------------------------------------------------------------------------------
Net assets $6,164,353,908
Represented by
- -----------------------------------------------------------------------------------------------
Paid-in capital (Notes 1 and 4) $4,255,738,563
- -----------------------------------------------------------------------------------------------
Accumulated net realized gain on investments (Note 1) 939,353,130
- -----------------------------------------------------------------------------------------------
Net unrealized appreciation of investments 969,262,215
- -----------------------------------------------------------------------------------------------
Total -- Representing net assets applicable to
capital shares outstanding $6,164,353,908
Computation of net asset value and offering price
- -----------------------------------------------------------------------------------------------
Net asset value and redemption price per class A share
($3,672,459,731 divided by 256,774,350 shares) $14.30
- -----------------------------------------------------------------------------------------------
Offering price per class A share (100/94.25 of $14.30)* $15.17
- -----------------------------------------------------------------------------------------------
Net asset value and offering price per class B share
($1,768,766,187 divided by 130,970,081 shares)** $13.51
- -----------------------------------------------------------------------------------------------
Net asset value and offering price per class C share
($363,501 divided by 25,418 shares)** $14.30
- -----------------------------------------------------------------------------------------------
Net asset value and redemption price per class M share
($150,573,190 divided by 10,819,968 shares) $13.92
- -----------------------------------------------------------------------------------------------
Offering price per class M share (100/96.50 of $13.92)* $14.42
- -----------------------------------------------------------------------------------------------
Net asset value, offering price and redemption price per class Y share
($572,191,299 divided by 39,420,142 shares) $14.52
- -----------------------------------------------------------------------------------------------
* 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
Year ended July 31, 1999
<S> <C>
Investment income:
- -----------------------------------------------------------------------------------------------
Dividends (including dividend income of $51,448
from investments in affiliated issuers) (Note 5) $ 19,391,857
- -----------------------------------------------------------------------------------------------
Interest 8,331,145
- -----------------------------------------------------------------------------------------------
Total investment income 27,723,002
Expenses:
- -----------------------------------------------------------------------------------------------
Compensation of Manager (Note 2) 26,138,410
- -----------------------------------------------------------------------------------------------
Investor servicing and custodian fees (Note 2) 9,287,421
- -----------------------------------------------------------------------------------------------
Compensation of Trustees (Note 2) 52,334
- -----------------------------------------------------------------------------------------------
Administrative services (Note 2) 34,957
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class A (Note 2) 8,372,211
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class B (Note 2) 16,038,614
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class M (Note 2) 991,038
- -----------------------------------------------------------------------------------------------
Reports to shareholders 156,360
- -----------------------------------------------------------------------------------------------
Registration fees 151,416
- -----------------------------------------------------------------------------------------------
Auditing 62,842
- -----------------------------------------------------------------------------------------------
Legal 42,312
- -----------------------------------------------------------------------------------------------
Postage 646,333
- -----------------------------------------------------------------------------------------------
Other 577,615
- -----------------------------------------------------------------------------------------------
Total expenses 62,551,863
- -----------------------------------------------------------------------------------------------
Expense reduction (Note 2) (722,511)
- -----------------------------------------------------------------------------------------------
Net expenses 61,829,352
- -----------------------------------------------------------------------------------------------
Net investment loss (34,106,350)
- -----------------------------------------------------------------------------------------------
Net realized gain on investments (including realized gain of
$14,128,765 on sales of investments in affiliated issuers) (Notes 1, 3 and 5) 973,668,754
- -----------------------------------------------------------------------------------------------
Net unrealized depreciation of investments during the year (153,016,281)
- -----------------------------------------------------------------------------------------------
Net gain on investments 820,652,473
- -----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $786,546,123
- -----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of changes in net assets
Year ended July 31
-------------------------------
1999 1998
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase in net assets
- ---------------------------------------------------------------------------------------------------------------
Operations:
- ---------------------------------------------------------------------------------------------------------------
Net investment loss $ (34,106,350) $ (28,250,857)
- ---------------------------------------------------------------------------------------------------------------
Net realized gain on investments 973,668,754 631,850,032
- ---------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments (153,016,281) 127,375,274
- ---------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 786,546,123 730,974,449
- ---------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
- ---------------------------------------------------------------------------------------------------------------
From net realized gain on investments
Class A (249,821,333) (207,841,199)
- ---------------------------------------------------------------------------------------------------------------
Class B (127,241,919) (102,991,533)
- ---------------------------------------------------------------------------------------------------------------
Class M (10,117,862) (8,092,094)
- ---------------------------------------------------------------------------------------------------------------
Class Y (21,567,832) (18,662,362)
- ---------------------------------------------------------------------------------------------------------------
Increase from capital share transactions (Note 4) 504,115,872 716,470,714
- ---------------------------------------------------------------------------------------------------------------
Total increase in net assets 881,913,049 1,109,857,975
Net assets
- ---------------------------------------------------------------------------------------------------------------
Beginning of year 5,282,440,859 4,172,582,884
- ---------------------------------------------------------------------------------------------------------------
End of year (including undistributed net investment
income of $-- and $--, respectively) $6,164,353,908 $5,282,440,859
- ---------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Financial highlights
(For a share outstanding throughout the period)
CLASS A
- ------------------------------------------------------------------------------------------------------------------------------------
Per-share
operating performance Year ended July 31
- ------------------------------------------------------------------------------------------------------------------------------------
1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $13.49 $12.52 $9.79 $9.23 $7.09
- ------------------------------------------------------------------------------------------------------------------------------------
Investment operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (.05)(c) (.05)(c) (.03)(c) (.03) .02
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 1.89 1.98 3.43 1.45 2.18
- ------------------------------------------------------------------------------------------------------------------------------------
Total from
investment operations 1.84 1.93 3.40 1.42 2.20
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions:
- ------------------------------------------------------------------------------------------------------------------------------------
From net
investment income -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
From net realized gain
on investments (1.03) (.96) (.67) (.86) (.06)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (1.03) (.96) (.67) (.86) (.06)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $14.30 $13.49 $12.52 $9.79 $9.23
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
- ------------------------------------------------------------------------------------------------------------------------------------
Total return at
net asset value (%)(a) 15.08 16.90 36.25 16.64 31.22
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $3,672,460 $3,279,628 $2,626,464 $1,220,639 $859,403
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%) (b) .94 .98 1.04 1.10 1.07
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets (%) (.41) (.38) (.25) (.29) .26
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 155.40 110.60 82.91 106.58 114.51
- ------------------------------------------------------------------------------------------------------------------------------------
+ Commencement of operations.
* Not annualized.
(a) Total return assumes dividend reinvestment and does not reflect the effect of sales charges.
(b) The ratio of expenses to average net assets for the year ended July 31, 1996 and thereafter, includes amounts paid through
expense offset and brokerage service arrangements. Prior period ratios exclude these amounts (Note 2).
(c) Per share net investment income (loss) has been determined on the basis of the weighted average number of shares
outstanding during the period.
</TABLE>
<TABLE>
<CAPTION>
Financial highlights
(For a share outstanding throughout the period)
CLASS B
- ------------------------------------------------------------------------------------------------------------------------------------
Per-share
operating performance Year ended July 31
- ------------------------------------------------------------------------------------------------------------------------------------
1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $12.89 $12.09 $9.55 $9.08 $7.03
- ------------------------------------------------------------------------------------------------------------------------------------
Investment operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (.14)(c) (.14)(c) (.11)(c) (.10)(c) (.03)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 1.79 1.90 3.32 1.43 2.14
- ------------------------------------------------------------------------------------------------------------------------------------
Total from
investment operations 1.65 1.76 3.21 1.33 2.11
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions:
- ------------------------------------------------------------------------------------------------------------------------------------
From net
investment income -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
From net realized gain
on investments (1.03) (.96) (.67) (.86) (.06)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (1.03) (.96) (.67) (.86) (.06)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $13.51 $12.89 $12.09 $9.55 $9.08
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
- ------------------------------------------------------------------------------------------------------------------------------------
Total return at
net asset value (%)(a) 14.27 16.05 35.14 15.88 30.19
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $1,768,766 $1,585,961 $1,212,589 $488,085 $258,522
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%) (b) 1.69 1.73 1.79 1.81 1.82
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets (%) (1.16) (1.13) (.99) (1.03) (.51)
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 155.40 110.60 82.91 106.58 114.51
- ------------------------------------------------------------------------------------------------------------------------------------
+ Commencement of operations.
* Not annualized.
(a) Total return assumes dividend reinvestment and does not reflect the effect of sales charges.
(b) The ratio of expenses to average net assets for the year ended July 31, 1996 and thereafter, includes amounts paid through
expense offset and brokerage service arrangements. Prior period ratios exclude these amounts (Note 2).
(c) Per share net investment income (loss) has been determined on the basis of the weighted average number of shares
outstanding during the period.
</TABLE>
<TABLE>
<CAPTION>
Financial highlights
(For a share outstanding throughout the period)
CLASS C
- ------------------------------------------------------------------------------------------------------------------------------------
For the period
Per-share July 26, 1999+
operating performance to July 31
- ------------------------------------------------------------------------------------------------------------------------------------
1999
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Net asset value,
beginning of period $14.54
- ------------------------------------------------------------------------------------------------------------------------------------
Investment operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) --(c)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments (.24)
- ------------------------------------------------------------------------------------------------------------------------------------
Total from
investment operations (.24)
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions:
- ------------------------------------------------------------------------------------------------------------------------------------
From net
investment income --
- ------------------------------------------------------------------------------------------------------------------------------------
From net realized gain
on investments --
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $14.30
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
- ------------------------------------------------------------------------------------------------------------------------------------
Total return at
net asset value (%)(a) (1.65)*
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $364
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%) (b) .01*
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets (%) (.01)*
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 155.40
- ------------------------------------------------------------------------------------------------------------------------------------
+ Commencement of operations.
* Not annualized.
(a) Total return assumes dividend reinvestment and does not reflect the effect of sales charges.
(b) The ratio of expenses to average net assets for the year ended July 31, 1996 and thereafter, includes amounts paid through
expense offset and brokerage service arrangements. Prior period ratios exclude these amounts (Note 2).
(c) Per share net investment income (loss) has been determined on the basis of the weighted average number of shares
outstanding during the period.
</TABLE>
<TABLE>
<CAPTION>
Financial highlights
(For a share outstanding throughout the period)
CLASS M
- ------------------------------------------------------------------------------------------------------------------------------------
For the period
Per-share Dec. 8, 1994+
operating performance Year ended July 31 to July 31
- ------------------------------------------------------------------------------------------------------------------------------------
1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $13.22 $12.34 $9.72 $9.19 $6.73
- ------------------------------------------------------------------------------------------------------------------------------------
Investment operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (.12)(c) (.11)(c) (.08)(c) (.08)(c) (.01)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 1.85 1.95 3.37 1.47 2.53
- ------------------------------------------------------------------------------------------------------------------------------------
Total from
investment operations 1.73 1.84 3.29 1.39 2.52
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions:
- ------------------------------------------------------------------------------------------------------------------------------------
From net
investment income -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
From net realized gain
on investments (1.03) (.96) (.67) (.86) (.06)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (1.03) (.96) (.67) (.86) (.06)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $13.92 $13.22 $12.34 $9.72 $9.19
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
- ------------------------------------------------------------------------------------------------------------------------------------
Total return at
net asset value (%)(a) 14.53 16.38 35.35 16.37 37.63*
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $150,573 $128,259 $90,788 $22,232 $3,148
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%) (b) 1.44 1.48 1.54 1.54 1.06*
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets (%) (.91) (.88) (.73) (.82) (.31)*
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 155.40 110.60 82.91 106.58 114.51
- ------------------------------------------------------------------------------------------------------------------------------------
+ Commencement of operations.
* Not annualized.
(a) Total return assumes dividend reinvestment and does not reflect the effect of sales charges.
(b) The ratio of expenses to average net assets for the year ended July 31, 1996 and thereafter, includes amounts paid through
expense offset and brokerage service arrangements. Prior period ratios exclude these amounts (Note 2).
(c) Per share net investment income (loss) has been determined on the basis of the weighted average number of shares
outstanding during the period.
</TABLE>
<TABLE>
<CAPTION>
Financial highlights
(For a share outstanding throughout the period)
CLASS Y
- ------------------------------------------------------------------------------------------------------------------------------------
For the period
Per-share March 28, 1995+
operating performance Year ended July 31 to July 31
- ------------------------------------------------------------------------------------------------------------------------------------
1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $13.64 $12.61 $9.84 $9.24 $7.83
- ------------------------------------------------------------------------------------------------------------------------------------
Investment operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (.02)(c) (.02)(c) --(c) -- .01
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 1.93 2.01 3.44 1.46 1.40
- ------------------------------------------------------------------------------------------------------------------------------------
Total from
investment operations 1.91 1.99 3.44 1.46 1.41
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions:
- ------------------------------------------------------------------------------------------------------------------------------------
From net
investment income -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
From net realized gain
on investments (1.03) (.96) (.67) (.86) --
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (1.03) (.96) (.67) (.86) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $14.52 $13.64 $12.61 $9.84 $9.24
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
- ------------------------------------------------------------------------------------------------------------------------------------
Total return at
net asset value (%)(a) 15.44 17.26 36.49 17.07 18.01*
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $572,191 $288,593 $242,742 $63,330 $42,717
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%) (b) .69 .73 .79 .81 .29*
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets (%) (.17) (.13) .02 (.01) .10*
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 155.40 110.60 82.91 106.58 114.51
- ------------------------------------------------------------------------------------------------------------------------------------
+ Commencement of operations.
* Not annualized.
(a) Total return assumes dividend reinvestment and does not reflect the effect of sales charges.
(b) The ratio of expenses to average net assets for the year ended July 31, 1996 and thereafter, includes amounts paid through
expense offset and brokerage service arrangements. Prior period ratios exclude these amounts (Note 2).
(c) Per share net investment income (loss) has been determined on the basis of the weighted average number of shares
outstanding during the period.
</TABLE>
Notes to financial statements
July 31, 1999
Note 1
Significant accounting policies
Putnam Vista Fund (the "fund") is registered under the Investment Company
Act of 1940, as amended, as a diversified, open-end management investment
company. The fund seeks capital appreciation by investing primarily in
common stocks 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 C, class M and class Y shares. The
fund began offering class C shares on July 26, 1999. 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 are subject to a contingent deferred sales charge, if
those shares are redeemed within six years of purchase. Class C shares are
subject to the same fees and expenses as class B shares, except that class
C shares have a one-year 1.00% contingent deferred sales charge and do not
convert to class A shares. Class M shares are sold with a maximum front
end sales charge of 3.50% and pay an ongoing distribution fee that is
higher than class A shares but lower than class B shares. Class Y shares,
which are sold at net asset value, are generally subject to the same
expenses as class A shares, class B shares, class C shares and class M
shares, but do not bear a distribution fee. Class Y shares are sold to
defined contribution plans that invest at least $150 million in a
combination of Putnam Funds and other accounts managed by affiliates of
Putnam Investment Management, Inc. ("Putnam Management"), the fund's
Manager, a wholly-owned subsidiary of Putnam Investments, Inc.
Expenses of the fund are borne pro-rata by the holders of each class of
shares, except that each class bears expenses unique to that class
(including the distribution fees applicable to such class). Each class
votes as a class only with respect to its own distribution plan or other
matters on which a class vote is required by law or determined by the
Trustees. Shares of each class would receive their pro-rata share of the
net assets of the fund, if that fund were liquidated. In addition, the
Trustees declare separate dividends on each class of shares.
The following is a summary of significant accounting policies consistently
followed by the fund in the preparation of its financial statements. The
preparation of financial statements is in conformity with generally
accepted accounting principles and requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities. Actual results could differ from those estimates.
A) Security valuation Investments for which market quotations are readily
available are stated at market value, which is determined using the last
reported sales price, or, if no sales are reported -- as in the case of
some securities traded over-the-counter -- the last reported bid price.
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 and certain other accounts managed by
Putnam Management. 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. Collateral
for certain tri-party repurchase agreements is held at the counterparty's
custodian in a segregated account for the benefit of the fund and the
counterparty. Putnam Management is responsible for determining that the
value of these underlying securities is at all times at least equal to the
resale price, including accrued interest.
D) Security transactions and related investment income Security
transactions are accounted for on the trade date (date the order to buy or
sell is executed). Gains or losses on securities sold are determined on
the identified cost basis. Interest income is recorded on the accrual
basis. 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) Line of credit The fund has entered into a committed line of credit
with certain banks. This line of credit agreement includes restrictions
that the fund maintain an asset coverage ratio of at least 300% and
borrowings must not exceed prospectus limitations. For the year ended July
31, 1999 the fund had no borrowings against the line of credit.
F) Federal taxes It is the policy of the fund to distribute all of its
taxable income within the prescribed time and otherwise comply with the
provisions of the Internal Revenue Code applicable to regulated investment
companies. It is also the intention of the fund to distribute an amount
sufficient to avoid imposition of any excise tax under Section 4982 of the
Internal Revenue Code of 1986, as amended. Therefore, no provision has
been made for federal taxes on income, capital gains or unrealized
appreciation on securities held nor for excise tax on income and capital
gains.
G) Distributions to shareholders Distributions to shareholders from net
investment income are recorded by the fund on the ex-dividend date.
Capital gain distributions, if any, are recorded on the ex-dividend date
and paid at least annually. The amount and character of income and gains
to be distributed are determined in accordance with income tax regulations
which may differ from generally accepted accounting principles. These
differences include temporary and permanent differences of losses on wash
sale transactions, net operating loss and accretion/amortization.
Reclassifications are made to the fund's capital accounts to reflect
income and gains available for distribution (or available capital loss
carryovers) under income tax regulations. For the year ended July 31,
1999, the fund reclassified $34,106,350 to decrease accumulated net
investment loss and $22,383 to increase paid-in-capital, with a decrease
to accumulated net realized gains of $34,128,733. The calculation of net
investment income per share in the financial highlights table excludes
these adjustments.
Note 2
Management fee, administrative
services and other transactions
Compensation of Putnam Management, for management and investment advisory
services is paid quarterly based on the average net assets of the fund.
Such fee is based on the following annual rates: 0.65% of the first $500
million of average net assets, 0.55% of the next $500 million, 0.50% of
the next $500 million, 0.45% of the next $5 billion, 0.425% of the next $5
billion, 0.405% of the next $5 billion, 0.39% of the next $5 billion and
0.38% thereafter.
The fund reimburses Putnam Management an allocated amount for the
compensation and related expenses of certain officers of the fund and
their staff who provide administrative services to the fund. The aggregate
amount of all such reimbursements is determined annually by the Trustees.
Custodial functions for the fund's assets are provided by Putnam Fiduciary
Trust Company (PFTC), a subsidiary of Putnam Investments, Inc. Investor
servicing agent functions are provided by Putnam Investor Services, a
division of PFTC.
For the year ended July 31, 1999, fund expenses were reduced by $722,511
under expense offset arrangements with PFTC and brokerage service
arrangements. Investor servicing and custodian fees reported in the
Statement of operations exclude these credits. The fund could have
invested a portion of the assets utilized in connection with the expense
offset arrangements in an income producing asset if it had not entered
into such arrangements.
Each Trustee of the fund receives an annual Trustee fee, of which $3,521
has been allocated to the fund, and an additional fee for each Trustee's
meeting attended. Trustees who are not interested persons of Putnam
Management and who serve on committees of the Trustees receive additional
fees for attendance at certain committee meetings.
The fund has adopted a Trustee Fee Deferral Plan (the "Deferral Plan")
which allows the Trustees to defer the receipt of all or a portion of
Trustees Fees payable on or after July 1, 1995. The deferred fees remain
invested in certain Putnam funds until distribution in accordance with the
Deferral Plan.
The fund has adopted an unfunded noncontributory defined benefit pension
plan (the "Pension Plan") covering all Trustees of the fund who have
served as Trustee for at least five years. Benefits under the Pension Plan
are equal to 50% of the Trustee's average total retainer and meeting fees
for the three years preceding retirement. Pension expense for the fund is
included in Compensation of Trustees in the Statement of operations.
Accrued pension liability is included in Payable for compensation of
Trustees in the Statement of assets and liabilities.
The fund has adopted distribution plans (the "Plans") with respect to its
class A, class B, class C 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%
1.00% and 1.00% of the average net assets attributable to class A, class
B, class C and class M shares, respectively. The Trustees have approved
payment by the fund to an annual rate of .025%, 1.00%, 1.00% and 0.75% of
the average net assets attributable to class A, class B, class C and class
M shares, respectively.
For the year ended July 31, 1999, Putnam Mutual Funds Corp., acting as
underwriter received net commissions of $1,029,409 and $40,413 from the
sale of class A and class M shares, respectively, and $2,303,056 and no
monies in contingent deferred sales charges from redemptions of class B
shares and class C shares, respectively. A deferred sales charge of up to
1% is assessed on certain redemptions of class A shares. For the year
ended July 31, 1999, Putnam Mutual Funds Corp., acting as underwriter
received $55,267 on class A redemptions.
Note 3
Purchase and sales of securities
During the year ended July 31, 1999, purchases and sales of investment
securities other than short-term investments aggregated $8,569,307,202 and
$8,220,986,273, respectively. There were no purchases and sales of U.S.
government obligations.
Note 4
Capital shares
At July 31, 1999, there was an unlimited number of shares of beneficial
interest authorized. Transactions in capital shares were as follows:
Year ended July 31, 1999
- -----------------------------------------------------------------------------
Class A Shares Amount
- -----------------------------------------------------------------------------
Shares sold 90,285,502 $ 1,181,101,401
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 19,741,002 237,089,484
- -----------------------------------------------------------------------------
110,026,504 1,418,190,885
Shares
repurchased (96,354,534) (1,269,835,707)
- -----------------------------------------------------------------------------
Net increase 13,671,970 $ 148,355,178
- -----------------------------------------------------------------------------
Year ended July 31, 1998
- -----------------------------------------------------------------------------
Class A Shares Amount
- -----------------------------------------------------------------------------
Shares sold 100,554,869 $1,276,496,212
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 17,501,153 197,237,962
- -----------------------------------------------------------------------------
118,056,022 1,473,734,174
Shares
repurchased (84,813,029) (1,073,796,615)
- -----------------------------------------------------------------------------
Net increase 33,242,993 $ 399,937,559
- -----------------------------------------------------------------------------
Year ended July 31, 1999
- -----------------------------------------------------------------------------
Class B Shares Amount
- -----------------------------------------------------------------------------
Shares sold 32,910,754 $408,231,770
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 10,324,674 117,597,920
- -----------------------------------------------------------------------------
43,235,428 525,829,690
Shares
repurchased (35,300,737) (439,040,293)
- -----------------------------------------------------------------------------
Net increase 7,934,691 $ 86,789,397
- -----------------------------------------------------------------------------
Year ended July 31, 1998
- -----------------------------------------------------------------------------
Class B Shares Amount
- -----------------------------------------------------------------------------
Shares sold 35,912,944 $ 440,380,182
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 8,790,956 95,118,377
- -----------------------------------------------------------------------------
44,703,900 535,498,559
Shares
repurchased (21,992,849) (269,973,540)
- -----------------------------------------------------------------------------
Net increase 22,711,051 $ 265,525,019
- -----------------------------------------------------------------------------
For the period July 26, 1999
(commencement of operations)
to July 31, 1999
- -----------------------------------------------------------------------------
Class C Shares Amount
- -----------------------------------------------------------------------------
Shares sold 25,418 $363,404
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions -- --
- -----------------------------------------------------------------------------
25,418 363,404
Shares
repurchased -- --
- -----------------------------------------------------------------------------
Net increase 25,418 $363,404
- -----------------------------------------------------------------------------
Year ended July 31, 1999
- -----------------------------------------------------------------------------
Class M Shares Amount
- -----------------------------------------------------------------------------
Shares sold 5,073,773 $ 65,459,985
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 839,474 9,838,634
- -----------------------------------------------------------------------------
5,913,247 75,298,619
Shares
repurchased (4,794,756) (61,863,878)
- -----------------------------------------------------------------------------
Net increase 1,118,491 $ 13,434,741
- -----------------------------------------------------------------------------
Year ended July 31, 1998
- -----------------------------------------------------------------------------
Class M Shares Amount
- -----------------------------------------------------------------------------
Shares sold 4,570,124 $ 57,200,814
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 686,370 7,605,041
- -----------------------------------------------------------------------------
5,256,494 64,805,855
Shares
repurchased (2,911,068) (36,613,684)
- -----------------------------------------------------------------------------
Net increase 2,345,426 $ 28,192,171
- -----------------------------------------------------------------------------
Year ended July 31, 1999
- -----------------------------------------------------------------------------
Class Y Shares Amount
- -----------------------------------------------------------------------------
Shares sold 24,211,223 $335,781,867
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 1,772,091 21,566,352
- -----------------------------------------------------------------------------
25,983,314 357,348,219
Shares
repurchased (7,720,337) (102,175,067)
- -----------------------------------------------------------------------------
Net increase 18,262,977 $255,173,152
- -----------------------------------------------------------------------------
Year ended July 31, 1998
- -----------------------------------------------------------------------------
Class Y Shares Amount
- -----------------------------------------------------------------------------
Shares sold 6,182,440 $ 79,819,359
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 1,640,121 18,662,362
- -----------------------------------------------------------------------------
7,822,561 98,481,721
Shares
repurchased (5,909,265) (75,665,756)
- -----------------------------------------------------------------------------
Net increase 1,913,296 $ 22,815,965
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
Note 5
Transactions with affiliated issuers
Transactions during the year with companies in which the fund owns at
least 5% of the voting securities were as follows:
Purchase Sales Dividend Market
Affiliates cost cost Income Value
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Name of affiliate
- -------------------------------------------------------------------------------------------------------------------
AmeriSource Health Corp.
Class A $94,376,089 $7,020,764 $ -- $90,773,200
Ann Taylor Stores Corp. 60,884,265 -- -- 52,700,388
Dominicks Supermarkets Inc. 15,347,494 49,899,397 -- --
Furniture Brands
International Inc. 68,962,065 13,853,256 -- 80,190,000
Linens 'N Things, Inc. 33,923,321 12,072,233 -- 93,943,000
Westpoint Stevens, Inc. 71,593,024 22,700,582 51,448 86,799,640
- -------------------------------------------------------------------------------------------------------------------
Totals $345,086,258 $105,546,232 $51,448 $404,406,228
</TABLE>
Federal tax information
Pursuant to Section 852 of the Internal Revenue Code, as amended, the Fund
hereby designates $809,312,865 as capital gain, for its taxable year ended
July 31, 1999.
The Form 1099 you receive in January 2000 will show the tax status of all
distributions paid to your account in calendar 1999.
The Putnam family of funds
The following is a complete list of Putnam's open-end mutual funds. Please
call your financial advisor or Putnam at 1-800-225-1581 to obtain a prospectus
for any Putnam fund. It contains more complete information, including charges
and expenses. Please read it carefully before you invest or send money.
GROWTH FUNDS
Asia Pacific Growth Fund
Capital Appreciation Fund [DBL. DAGGER]
Capital Opportunities Fund
Diversified Equity Trust
Europe Growth Fund
Global Growth Fund
Global Natural Resources Fund
Growth Opportunities Fund
Health Sciences Trust
International Growth Fund
International New Opportunities Fund
Investors Fund
New Opportunities Fund [DBL. DAGGER]
OTC & Emerging Growth Fund
Research Fund
Vista Fund
Voyager Fund
Voyager Fund II
GROWTH AND INCOME FUNDS
Balanced Retirement Fund
Convertible Income-Growth Trust
Equity Income Fund
The George Putnam Fund of Boston
Global Growth and Income Fund
The Putnam Fund for Growth and Income
Growth and Income Fund II
International Growth and Income Fund
New Value Fund
Utilities Growth and Income Fund
INCOME FUNDS
American Government Income Fund
Diversified Income Trust
Global Governmental Income Trust
High Yield Advantage Fund [DBL. DAGGER]
High Yield Trust [DBL. DAGGER]
High Yield Trust II
Income Fund
Intermediate U.S. Government
Income Fund
Money Market Fund **
Preferred Income Fund
Strategic Income Fund *
U.S. Government Income Trust
TAX-FREE INCOME FUNDS
Municipal Income Fund
Tax Exempt Income Fund
Tax Exempt Money Market Fund**
Tax-Free High Yield Fund
Tax-Free Insured Fund
State tax-free income funds [SECTION MARK]
Arizona, California, Florida, Massachusetts, Michigan, Minnesota, New Jersey,
New York, Ohio and Pennsylvania
State tax-free money market funds [SECTION MARK]**
California, New York
ASSET ALLOCATION FUNDS
Putnam Asset Allocation Funds--three investment portfolios that spread your
money across a variety of stocks, bonds, and money market investments.
The three portfolios:
Asset Allocation: Balanced Portfolio
Asset Allocation: Conservative Portfolio
Asset Allocation: Growth Portfolio
* Formerly Putnam Diversified Income Trust II
[DBL. DAGGER] Closed to new investors. Some exceptions may apply. Contact
Putnam for details.
[SECTION MARK] Not available in all states.
** An investment in a money market fund is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government agency.
Although the funds seek to preserve your investment at $1.00 per share, it
is possible to lose money by investing in the fund.
Check your account balances and current performance at www.putnaminv.com.
Fund information
WEB SITE
www.putnaminv.com
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
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
TRUSTEES
George Putnam, Chairman
William F. Pounds, Vice Chairman
John A. Hill, Vice Chairman
Jameson Adkins Baxter
Hans H. Estin
Ronald J. Jackson
Paul L. Joskow
Elizabeth T. Kennan
Lawrence J. Lasser
John H. Mullin III
Robert E. Patterson
George Putnam, III
A.J.C. Smith
W. Thomas Stephens
W. Nicholas Thorndike
OFFICERS
George Putnam
President
Charles E. Porter
Executive Vice President
Patricia C. Flaherty
Senior Vice President
John D. Hughes
Senior Vice President and Treasurer
Lawrence J. Lasser
Vice President
Gordon H. Silver
Vice President
Ian C. Ferguson
Vice President
Brett C. Browchuk
Vice President
John J. Morgan, Jr.
Vice President
Eric Wetlaufer
Vice President and Fund Manager
Anthony C. Santosus
Vice President and Fund Manager
Dana Clark
Vice President and Fund Manager
Margery Parker
Vice President and Fund Manager
Richard A. Monaghan
Vice President
John R. Verani
Vice President
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.
You can also learn more at Putnam Investments' Web site: www.putnaminv.com.
Shares of mutual funds are not deposits or obligations of, or guaranteed
or endorsed by, any financial institution; are not insured by the Federal
Deposit Insurance Corporation (FDIC), the Federal Reserve Board, or any
other agency; and involve risk, including the possible loss of the
principal amount invested.
[LOGO OMITTED]
PUTNAM INVESTMENTS
The Putnam Funds
One Post Office Square
Boston, Massachusetts 02109
- ---------------------
BULK RATE
U.S. POSTAGE PAID
PUTNAM
INVESTMENTS
- ---------------------
For account balances, economic forecasts, and the latest on Putnam funds, visit
www.putnaminv.com
AN015-54554 006/317/515/376 9/99
PUTNAM INVESTMENTS [SCALE LOGO OMITTED]
- ----------------------------------------------------------------------------
Putnam Vista Fund
Supplement to Annual Report dated 7/31/99
The following information has been prepared to provide class Y shareholders
with a performance overview specific to their holdings. Class Y shares are
offered exclusively to defined contribution plans investing $150 million or
more in one or more of Putnam's funds or private accounts. Performance of
class Y shares, which incur neither a front-end load, distribution fee, nor
contingent deferred sales charge, will differ from performance of class A,
B, C, and M shares, which are discussed more extensively in the annual
report.
ANNUAL RESULTS AT A GLANCE
- ----------------------------------------------------------------------------
Total return
for periods ended 7/31/99 NAV
1 year 15.44
5 years 184.13
Annual average 23.23
10 years 387.66
Annual average 17.17
Annual average
(Life of fund since class A inception, 6/3/68) 11.83
Share value: NAV
7/31/98 $13.64
7/31/99 $14.52
- ----------------------------------------------------------------------------
Distributions: No. Income Capital gains Total
1 0.00 1.028 1.028
- ----------------------------------------------------------------------------
Please note that past performance does not indicate future results. Returns
shown for class Y shares for periods prior to their inception are derived
from the historical performance of class A shares, adjusted to reflect the
initial sales charge currently applicable to class A shares. These returns
have not been adjusted to reflect differences in operating expenses which,
for class Y shares, are lower than the operating expenses applicable to
class A shares. All returns assume reinvestment of distributions at net
asset value. Investment return and principal value will fluctuate so your
shares, when redeemed, may be worth more or less than their original cost.
See full report for information on comparative benchmarks. If you have
questions, please consult your fund prospectus or call Putnam toll free at
1-800-752-9894.
