Putnam
Voyager
Fund
SEMIANNUAL REPORT
January 31, 1996
[Putnam Scales Logo]
BOSTON * LONDON * TOKYO
Fund highlights
* Lipper Analytical Services ranked Putnam Voyager Fund's
class A shares #3 out of 50 (top 6%) of all capital appreciation funds
tracked for 10-year performance, as of January 31, 1996.
* Morningstar, an independent rating agency, gave the
fund's class A shares its highest ranking of five stars for overall
performance as of January 31, 1996. Only 10% of 1,412 equity funds rated
received five stars.
CONTENTS
4 Report from Putnam Management
8 Fund performance summary
13 Portfolio holdings
23 Financial statements
Lipper rankings are based on total return performance, vary over
time, and do not reflect the effects of sales charges. The fund's class
A shares ranked 28 out of 153 (top 19%), 11 out of 83 (top 14%), and 3
out of 50 (top 6%) for 1-, 5-, and 10-year performance, respectively, as
of 1/31/96. Performance of other share classes will vary. Past
performance is not indicative of future results.
Morningstar, an independent rating organization, rates a fund
relative to funds with similar investment objectives, based on the
fund's 3-, 5-, and 10-year performance, adjusted for risk factors and
sales charges. Ratings are updated monthly. 10% of funds receive 5
stars, 22.5% receive 4 stars, and 35% receive 3 stars. For the 3-, 5-,
and 10-year periods ended 1/31/96, there were 1,412, 948, and 510 funds
in the equity fund category, and the fund's class A shares received 4
stars, 4 stars and 5 stars for each respective period. The fund's class
B shares received 4 stars for the 3-year period ended 1/31/96.
Performance of other share classes will vary. Past performance is not
indicative of future results.
[GRAPHIC OMITTED: PHOTO OF GEORGE PUTNAM]
(copyright) Karsh, Ottawa
From the Chairman
Dear Shareholder:
The first half of Putnam Voyager Fund's current fiscal year fell
squarely within one of the most exuberant stock market environments in
recent memory. The extent of the rise in equities, along with
management's adept positioning, is clearly reflected in your fund's
performance during the six months ended January 31, 1996.
Quite naturally, we are pleased with the results. However, as recent
events have demonstrated, favorable conditions like these do not last
indefinitely without disruption. It would be a realistic expectation to
see some moderation in the pace of the advance and further corrections
from time to time during the second half of fiscal 1996. Putnam
Management believes the prospect of a slower economy still has the
potential to cool equity investors' ardor a bit.
As a result, the market may be in for some additional near-term
volatility. Nevertheless, your fund's management team believes that
stocks, on balance, will continue their upward course in 1996, though at
a more subdued pace than they enjoyed in 1995.
Respectfully yours,
/s/George Putnam
Chairman of the Trustees
March 20, 1996
Report from the Fund Managers
Roland W. Gillis, lead manager
Charles H. Swanberg
Robert R. Beck
Putnam Voyager Fund added another impressive semiannual period to its
long-term record. Stocks across the fund's three portfolio segments --
foundation growth, premier growth, and opportunity -- thrived over the
six months ended January 31, 1996, sparked by declining interest rates,
low inflation, and rising corporate earnings. We are optimistic that
market conditions will remain conducive to growth in the months ahead,
while some near-term volatility remains likely.
Over the semiannual period, your fund's class A, class B, and class M
shares returned 13.07%, 12.74%, and 12.90%, respectively, at net asset
value (NAV). At public offering price (POP), class A, class B, and class
M shares gained 6.56%, 7.74%, and 8.96%, respectively, over the same
period. Over the long term -- including both 5- and 10-year periods --
your fund has consistently outperformed the Standard & Poor's
500(registered trademark) Index, as the chart on page 8 shows.
* STRONG PERFORMANCE AMONG DIVERSE TECHNOLOGY HOLDINGS
Over the semiannual period, the foundation growth segment, composing
nearly 36% of the overall portfolio, witnessed particularly robust
performance. This portion of the portfolio encompasses stocks of small
to midsize companies selected for exceptional earnings growth potential.
Technology companies continued to drive foundation growth returns over
the period; computer networking holdings such as Cisco Systems and
Stratacom were particularly dynamic. Also noteworthy were Internet-related
companies, including America Online, NETCOM, and the high-flying Netscape
(while this stock, along with others discussed in this report, was 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 well vary in future). While we
believe the long-term outlook for these and other technology stocks to
be strong, we do anticipate ongoing bursts of volatility over the near
term.
Prices of telecommunications equipment stocks also moved upward
throughout the period and may be poised for further gains. Indeed, the
recently passed bill deregulating telecommunications may well provide an
important stimulus for the industry in the coming months. Companies
currently in the portfolio providing telecommunications equipment for
both regional Bells and long-distance telephone carriers include Ascend
and Cascade.
We have also seen encouraging performance from companies throughout the
health-care sector. Stocks of medical devices companies including
Medtronic, Boston Scientific, and the dynamic Thermo Cardiosystems have
moved higher as they continue to ship important devices. We have added
to the fund's current biotechnology holdings, including Gilead Sciences
and Neurogen. These and other biotechnology companies have products in
the pipeline that we believe possess excellent sales potential. Finally,
the fund also benefited from stocks of companies in the health-care
services area, including long-term care provider Health Care and
Retirement Corp. and Healthsource, Inc., an HMO.
* PREMIER GROWTH SEGMENT SIMILARLY BUOYANT
The premier growth segment currently accounts for some 32% of the
overall portfolio. These stocks are similar to foundation growth
holdings but have a larger average size (the total value of the
outstanding stock of companies in this segment must exceed $500
million). As with the rest of the market, the premier growth section saw
excellent performance from technology and medical device stocks,
including Maxim Integrated Products and Linear Technology. U.S.
Robotics, a supplier of modems, also thrived.
[GRAPHIC OMITTED: horizontal bar chart TOP INDUSTRY SECTORS* showing:
Computer software 8.0%
Pharmaceuticals and biotechnology 5.5%
Business services 5.0%
Health-car services 4.5%
Medical devices and supplies 4.0%
Footnote reads:
*Based on net assets as of 1/31/96. Holdings and top industry sectors
will vary over time.]
In addition to technology, strong performers were found across the range
of premier growth holdings. Several financial companies did
exceptionally well, including the Federal National Mortgage Association
and the Federal Home Loan Mortgage Corp., two government-chartered,
stockholder-owned lenders. In retail, a generally weak sector, shares of
Gucci, which the fund bought in the firm's initial public offering,
moved substantially higher. Sunglass Hut, another new issue, and
Luxottica, a luxury eyeglass company that just purchased Lenscrafters,
were similarly strong.
Elsewhere, we saw positive movement from pharmaceutical companies
including Pfizer and Smithkline Beecham; we originally added these
stocks as a defensive move in the slowing economy. Input/Output is
another promising holding. The company supplies the oil-exploration
industry with detailed sonar maps of subsurface oil pools.
Finally, we steadily increased the portfolio's weighting in foreign
stocks, which now make up some 14% of the premier growth segment (7.5%
of the fund, overall). International companies include Baan, a Dutch
software firm; Rentokil, a British diversified business services firm;
Next, a British retailer; and Roche, the major Swiss pharmaceutical
concern. We believe that after the U.S. market's dramatic rise in 1995,
many foreign markets appear relatively undervalued, particularly in
those companies with global market share.
*OPPORTUNITY HOLDINGS CONSIDERED LIKELY TO HOLD VALUE
The opportunity segment currently encompasses 31% of your fund's overall
portfolio. Opportunity stocks are those of larger companies that are
making positive changes, including new-product development, improving
productivity, and new management. One example in the portfolio is
Polaroid Corporation, where we believe a new management team will be
able to take advantage of the company's real earnings power. We also are
upbeat about Kimberly-Clark since its merger with Scott Paper.
[GRAPHIC OMITTED: TOP 10 HOLDINGS (1/31/96)
HFS, Inc.
Lodging
Cabletron Systems, Inc.
Computer networking systems
Cisco Systems, Inc.
Computer networking systems
Thermo Electron Corp.
Energy and health-related machinery
Computer Associates Intl.
Software designer
MBNA Corp.
Financial services
America Online, Inc.
On-line service
HBO & Co.
Hospital information services
Parametric Technology Corp.
Mechanical software design
Citicorp
Financial services
Footnote reads:
These holdings represent 12.0% of the fund's net assets. Portfolio holdings
will vary over time.]
Digital Equipment, we believe, represents another strong turnaround
prospect. It also has fresh management, and we believe its new Alpha
chip has excellent potential. Given the positive reception of its strong
client/server hardware, Digital may have much room to grow -- perhaps
more so than certain of its competitors. Elsewhere, we have moved into
several financial companies, which we believe will be bolstered by the
interest-rate picture, including American International Group,
BankAmerica Corp., and American Express.
* OUTLOOK: GENERALLY POSITIVE, WITH SOME VOLATILITY
We believe the outlook for growth stocks is positive for the months
ahead. Significantly, even after the persistent market run-up, we are
still able to identify successfully a large number of companies that are
growing earnings much faster than those in the overall market -- and may
continue to do so whatever the prevailing economic environment
.
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 1/31/96, there is no guarantee the
fund will continue to hold these securities in the future. Smaller and
midsize companies in the fund's portfolio may fluctuate in price more
than larger companies.
Performance summary
Performance should always be considered in light of a fund's investment
strategy. Putnam Voyager Fund is designed for investors aggressively
seeking capital appreciation through common stocks.
This section provides, at a glance, information about your fund's
performance. Total return shows how the value of the fund's shares
changed over time, assuming you held the shares through the entire
period and reinvested all distributions back into the fund.
<TABLE>
<CAPTION>
TOTAL RETURN FOR PERIODS ENDED 1/31/96
Class A Class B Class M
Inception date (4/1/69) (4/27/92) (12/1/94)
NAV POP NAV CDSC NAV POP
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------
6 months 13.07% 6.56% 12.74% 7.74% 12.90% 8.96%
- ------------------------------------------------------------------------------------
1 year 41.17 33.10 40.27 35.27 40.59 35.65
- ------------------------------------------------------------------------------------
5 years 157.22 142.30 -- -- -- --
Annual average 20.80 19.36 -- -- -- --
- ------------------------------------------------------------------------------------
10 years 433.02 402.32 -- -- -- --
Annual average 18.22 17.52 -- -- -- --
- ------------------------------------------------------------------------------------
Life of class -- -- 93.24 90.24 43.86 38.80
Annual average -- -- 19.15 18.66 36.46 32.34
- ------------------------------------------------------------------------------------
</TABLE>
COMPARATIVE INDEX RETURNS FOR PERIODS ENDED 1/31/96
Standard & Poor's Consumer
500 Index Price Index
- ------------------------------------------------------------------------
6 months 14.49% 1.25%
- ------------------------------------------------------------------------
1 year 38.56 2.73
- ------------------------------------------------------------------------
5 years 113.15 14.71
Annual average 16.34 2.78
- ------------------------------------------------------------------------
10 years 310.40 40.88
Annual average 15.16 3.49
- ------------------------------------------------------------------------
Life of class B 69.99 10.68
Annual average 15.16 2.74
- ------------------------------------------------------------------------
Life of class M 44.72 3.14
Annual average 37.15 2.68
- ------------------------------------------------------------------------
Performance data represent past results, do not reflect future
performance, and will differ for each share class. They do not take into
account any adjustment for taxes payable on reinvested distributions or,
for class A shares, distribution fees prior to implementation of the
class A distribution plan in 1990. Investment returns and net asset
value will fluctuate so that an investor's shares, when sold, may be
worth more or less than their original cost. POP assumes 5.75% maximum
sales charge for class A shares and 3.50% for class M shares. CDSC for
class B shares assumes the applicable sales charge, with the maximum
being 5%.
TOTAL RETURN FOR PERIODS ENDED 12/31/95
(most recent calendar quarter)
Class A Class B Class M
NAV POP NAV CDSC NAV POP
- -------------------------------------------------------------------
6 months 19.69% 12.83% 19.25% 14.25% 19.36% 15.16%
- -------------------------------------------------------------------
1 year 40.16 32.13 39.07 34.07 39.46 34.55
- -------------------------------------------------------------------
5 years 174.89 159.13 -- -- -- --
Annual average 22.41 20.98 -- -- -- --
- -------------------------------------------------------------------
10 years 435.08 404.38 -- -- -- --
Annual average 18.26 17.56 -- -- -- --
- -------------------------------------------------------------------
Life of class -- -- 91.43 88.43 42.45 37.44
Annual average -- -- 19.30 18.79 38.77 34.24
- -------------------------------------------------------------------
PRICE AND DISTRIBUTION INFORMATION
6 months ended 1/31/96
Class A Class B Class M
- ----------------------------------------------------------------------------
Distributions
- ----------------------------------------------------------------------------
Number 1 1 1
- ----------------------------------------------------------------------------
Capital gains
- ----------------------------------------------------------------------------
Long-term $0.64 $0.64 $0.64
- ----------------------------------------------------------------------------
Short-term 0.22 0.22 0.22
- ----------------------------------------------------------------------------
Total $0.86 $0.86 $0.86
- ----------------------------------------------------------------------------
Share value: NAV POP NAV NAV POP
- ----------------------------------------------------------------------------
7/31/95 $14.42 $15.30 $14.01 $14.37 $14.89
- ----------------------------------------------------------------------------
1/31/96 15.40 16.34 14.89 15.32 15.88
- ----------------------------------------------------------------------------
TERMS AND DEFINITIONS
Class A shares are generally subject to an initial sales charge.
Class B shares may be subject to a sales charge upon redemption.
Class M shares have a lower initial sales charge and a higher 12b-1 fee
than class A shares and no sales charge on redemption.
Net asset value (NAV) is the value of all your fund's assets, minus any
liabilities, divided by the number of outstanding shares, not including
any initial or contingent deferred sales charge.
Public offering price (POP) is the price of a mutual fund share plus the
maximum sales charge levied at the time of purchase. POP performance
figures shown here assume the maximum 5.75% sales charge for class A
shares and 3.50% for class M shares.
Contingent deferred sales charge (CDSC) is a charge applied at the time
of the redemption of class B shares and assumes redemption at the end of
the period. Your fund's CDSC declines from a 5% maximum during the first
year to 1% during the sixth year. After the sixth year, the CDSC no
longer applies.
COMPARATIVE BENCHMARKS
Standard & Poor's 500 Index is an unmanaged list of common stocks that
is frequently used as a general measure of stock market performance. The
index assumes reinvestment of all distributions and does not take into
account brokerage commissions or other costs. The fund's portfolio
contains securities that do not match those in the index. You cannot
invest in an index.
Consumer Price Index (CPI) is a commonly used measure of inflation; it
does not represent an investment return.
A Putnam perspective on risk and reward
You've probably been told how important it is to understand the
relationship between an investment's potential rewards and its
accompanying risks. Given the cautionary nature of such
instructions, it may take most investors a while to realize that risk
has a positive side
.
Every risk signals a potential reward. Selecting only those investments
that offer the greatest degree of security generally leads to only
modest rewards. Furthermore, even insured or guaranteed investments may
be subject to changes in their rates of return or, in some cases, in
their principal values. Experienced investors know that no investment is
truly risk free and are therefore willing to take on some measure of
risk in order to increase their potential gains.
The greater the risk, the greater the potential reward. Accepting an
appropriate level of investment risk can give you a better chance of
outpacing inflation over time and seeking to maximize your investment's
return. How much risk? Your financial advisor's feedback and your time
horizon can make all the difference in determining how much risk is
compatible with your investment goals and your peace of mind.
FITTING YOUR FUND SELECTION TO YOUR
RISK TOLERANCE
How do you find the right balance between investment risks and their
potential rewards? It's helpful to understand the types of risks that
can apply to different types of investments, and to look at your own
portfolio with this perspective.
For short-time goals, your first priority may be managing market risk.
Longer-term investors may be more concerned with inflation risk. And all
income-oriented investors should consider interest-rate, credit, and
prepayment risks carefully. Within each of Putnam's four investment
categories, you can select funds with differing levels of risk and
reward potential to customize your portfolio.
This list covers only the most general types of risks; however, each
investment will also have its own specific risks. You will find a more
detailed discussion of these risk consideration in each fund's
prospectus.
* A RUNDOWN OF RISK TYPES
MARKET RISK Most important for stock funds, but relevant to all funds,
this is a measure of how sensitive a fund's holdings are to changes in
general market conditions. Remember, though, that securities that lose
value quickly in market declines may also show the strongest gains in
more favorable environments.
INTEREST-RATE RISK Since bond prices fall as interest rates rise, this
type of risk is a particular concern for fixed-income inves-
tors. However, interest-rate increases can also have a substantial
negative effect on the stock market.
INFLATION RISK If your investments cannot keep pace with inflation, your
money will begin to lose its purchasing power. Stock investments are
generally considered among the best ways of addressing inflation risk
over the long term.
CREDIT AND PREPAYMENT RISK Credit risk is the concern that the
security's issuer will not be able to meet its payment, while prepayment
risk involves the premature payoff of a loan, with a resulting loss of
interest income. Professional management and in-depth research are
invaluable in managing both these risks.
LIQUIDITY RISK Not all investments can be readily converted into cash at
their perceived market values. Liquidity risk can affect the price of
securities held in the fund's portfolio and, thus, the fund's share
prices.
<TABLE>
<CAPTION>
Portfolio of investments owned
January 31, 1996 (Unaudited)
COMMON STOCKS (96.3%)*
NUMBER OF SHARES VALUE
<S> <C> <C> <C>
Advertising (0.4%)
- ------------------------------------------------------------------------------------------------
853,150 Omnicom Group $ 32,952,919
Aerospace (1.1%)
- ------------------------------------------------------------------------------------------------
350,000 Boeing Co. 27,168,750
1,467,030 Flight Safety International, Inc. 73,168,121
------------------
100,336,871
Apparel (1.0%)
- ------------------------------------------------------------------------------------------------
1,646,450 Gucci Group + 66,887,031
699,600 Tommy Hilfiger Corp. + 26,584,800
------------------
93,471,831
Automotive (0.7%)
- ------------------------------------------------------------------------------------------------
950,000 Echlin, Inc. 35,031,250
750,000 Snap-On Inc. 32,906,250
------------------
67,937,500
Banks (2.5%)
- ------------------------------------------------------------------------------------------------
500,000 Bank of Boston Corp. 22,875,000
1,000,000 BankAmerica Corp. 67,375,000
1,300,000 Citicorp 96,037,500
680,000 NationsBank Corp. 47,515,000
------------------
233,802,500
Broadcasting (2.8%)
- ------------------------------------------------------------------------------------------------
592,786 Capital Cities/ABC, Inc. 76,247,099
266,400 Central European Media Enterprises Ltd. + 6,393,600
807,470 Clear Channel Communications, Inc. + 37,143,620
248,600 Evergreen Media Corp. Class A + 7,613,375
1,524,190 Infinity Broadcasting Corp. Class A + 60,586,553
416,620 LIN Television Corp. + 12,915,220
1,182,150 Renaissance Communications Corp. + 23,347,463
72,000 SFX Broadcasting, Inc. Class A, + 1,854,000
204,200 Sinclair Broadcast Group, Inc. Class A, + 3,675,600
1,849,600 Westwood One, Inc. + 29,709,200
------------------
259,485,730
Business Services (4.9%)
- ------------------------------------------------------------------------------------------------
1,173,790 Airgas, Inc. + 40,935,926
993,000 Alco Standard Corp. 38,975,250
17,500 Corestaff, Inc. + 656,250
2,570,600 Corporate Express, Inc. + 67,799,575
1,583,084 Danka Business Systems ADR (United Kingdom) 58,376,223
1,150,000 Dow Jones & Co., Inc. 44,993,750
231,200 Interim Services Inc. + 8,612,200
1,171,034 Interpublic Group of Cos., Inc. 49,768,945
788,200 Manpower, Inc. 21,182,875
8,571,480 Rentokil Group Ord. PLC (United Kingdom) 45,130,899
1,247,562 Robert Half International, Inc. + 52,553,549
------------------
462,660,442
Cable Television (1.9%)
- ------------------------------------------------------------------------------------------------
226,970 Cablevision Systems Corp. Class A + 12,767,063
1,451,900 Century Communications Corp. Class A + 11,070,738
765,925 Comcast Corp. Class A 15,414,241
799,370 TCA Cable TV, Inc. 24,680,549
1,307,684 Tele-Comm Liberty Media Group, Inc. Class A + 35,797,850
3,893,235 Tele-Communications Class A + 82,244,589
------------------
181,975,030
Chemicals (1.9%)
- ------------------------------------------------------------------------------------------------
146,900 FMC Corp. + 10,705,338
370,000 Great Lakes Chemical Corp. 27,611,250
1,150,000 Praxair, Inc. 39,100,000
1,200,000 Raychem Corp. 80,250,000
600,000 Witco Chemical Corp. 19,050,000
------------------
176,716,588
Computer Equipment (0.5%)
- ------------------------------------------------------------------------------------------------
500,000 Digital Equipment Corp. + 36,187,500
276,500 PRI Automation, Inc. + 7,880,250
------------------
44,067,750
Computer Services (3.2%)
- ------------------------------------------------------------------------------------------------
2,283,560 America Online, Inc. + 102,189,310
209,600 CBT Group PLC ADR (Ireland)+ 11,370,800
1,206,590 First Data Corp. 85,366,243
223,600 NETCOM On-Line Communication Services, Inc. + 6,819,800
1,308,838 Paychex, Inc. 67,895,971
550,200 PsiNet, Inc. + 7,290,150
171,200 Secure Computing Corp. + 6,655,400
225,400 Tivoli Systems, Inc. + 10,600,844
------------------
298,188,518
Computer Software (8.0%)
- ------------------------------------------------------------------------------------------------
690,900 Baan Co. (Netherlands)+ 29,967,788
157,500 Business Objects S.A., ADR (France)+ 7,245,000
11,700 Clarify, Inc. + 345,150
1,588,239 Computer Associates Intl., Inc. 108,595,842
968,500 Discreet Logic, Inc. (Canada)+ 25,423,125
1,524,083 Electronic Arts, Inc. + 36,577,992
795,400 Electronics for Imaging, Inc. + 28,833,250
394,200 Fulcrum Technologies, Inc. + 12,121,650
315,500 GT Interactive Software Corp. + 3,312,750
630,300 General Motors Corp. Class E 34,981,650
547,400 Geoworks + 13,548,150
2,361,520 Informix Corp. + 78,815,730
9,800 Inso Corporation + 377,300
263,100 Intuit, Inc. + 16,213,538
99,200 Legato Systems, Inc. + 3,174,400
402,200 Macromedia, Inc. + 16,088,000
319,450 Mercury Interactive Corp. + 6,628,588
14,500 Metatools, Inc. + 317,188
755,481 Microsoft Corp. + 69,881,993
233,085 Netscape Communications Corp. + 38,284,211
241,400 Novadigm, Inc. + 6,216,050
266,268 Objective Systems Integrators, Inc. + 10,650,720
1,484,200 Parametric Technology Corp. + 96,101,950
790,560 PeopleSoft, Inc. + 37,551,600
382,000 Platinum Software Corp. + 1,862,250
63,600 Project Software & Development, Inc. + 2,257,800
160,600 Scopus Technology, Inc. + 3,693,800
178,100 Security Dynamics Technologies, Inc. + 10,196,225
410,000 Sierra On-Line, Inc. + 10,198,750
669,300 Softkey International, Inc. + 9,286,538
160,100 Spyglass, Inc. + 6,243,900
13,200 Sync Research Inc. + 372,900
685,200 Synopsys, Inc. + 20,042,100
224,500 Vantive Corp. + 5,275,750
------------------
750,683,628
Consumer Products (0.8%)
- ------------------------------------------------------------------------------------------------
850,000 Kimberly-Clark Corp. 68,531,250
200,000 Lowe's Cos., Inc. 6,225,000
------------------
74,756,250
Consumer Non Durables (0.4%)
- ------------------------------------------------------------------------------------------------
1,200,000 Sara Lee Corp. 40,500,000
Consumer Services (0.8%)
- ------------------------------------------------------------------------------------------------
1,675,610 CUC International, Inc. + 61,788,119
490,000 Loewen Group, Inc. 13,781,250
------------------
75,569,369
Cosmetics (0.1%)
- ------------------------------------------------------------------------------------------------
435,800 Thermolase Corp. + 13,019,525
Electronics and Electrical Equipment (1.8%)
- ------------------------------------------------------------------------------------------------
1,800,000 ADT Ltd. + 26,100,000
572,675 Baldor Electric Co. 11,739,838
155,600 Franklin Electronic Publishers, Inc. + 4,415,150
500,000 General Electric Co. 38,375,000
3,151,800 Input/Output, Inc. + 76,431,150
307,200 Lemout & Hauspie Speech Products N.V. (Belgium) + 8,524,800
------------------
165,585,938
Energy-Related (1.2%)
- ------------------------------------------------------------------------------------------------
2,007,976 Thermo Electron Corp. + 109,434,675
Entertainment (0.6%)
- ------------------------------------------------------------------------------------------------
684,100 Disney (Walt) Productions, Inc. 43,953,425
251,600 Scientific Games Holdings Corp. + 9,875,300
------------------
53,828,725
Environmental Control (0.8%)
- ------------------------------------------------------------------------------------------------
490,200 Memtec Ltd. ADR (Australia) 10,171,650
128,200 Molten Metal Technology Inc. + 4,839,550
2,037,300 WMX Technologies, Inc. 60,864,338
------------------
75,875,538
Finance (3.1%)
- ------------------------------------------------------------------------------------------------
1,618,023 American Express Co. 74,429,058
751,690 Federal Home Loan Mortgage. Corp. 64,363,456
2,763,148 Federal National Mortgage Association 95,328,606
649,950 Financial Federal Corp. + 10,724,175
343,400 Morgan (J.P.) & Co., Inc. 27,901,250
293,800 Student Loan Marketing Assn. 21,631,025
------------------
294,377,570
Financial Services (1.9%)
- ------------------------------------------------------------------------------------------------
2,590,130 MBNA Corp. 105,547,798
2,150,095 Mercury Finance Co. 27,413,711
1,211,800 TCF Financial Corp. 39,837,925
------------------
172,799,434
Food and Beverages (2.3%)
- ------------------------------------------------------------------------------------------------
300,000 Anheuser-Busch Cos., Inc. 20,850,000
2,000,000 Archer Daniels Midland Co. 38,000,000
971,874 IBP, Inc. 25,876,145
450,000 PepsiCo, Inc. 26,831,250
2,150,000 Seagram Co. 78,206,250
900,000 Whitman Corporation 20,475,000
------------------
210,238,645
Gaming (0.7%)
- ------------------------------------------------------------------------------------------------
1,344,500 Circus Circus Enterprises, Inc. + 42,855,938
350,000 Mirage Resorts, Inc. + 13,650,000
630,900 Rio Hotel & Casino, Inc. + 8,201,700
------------------
64,707,638
Gas Utilities (0.5%)
- ------------------------------------------------------------------------------------------------
1,050,000 Columbia Gas System, Inc. + 45,543,750
HMOs (1.4%)
- ------------------------------------------------------------------------------------------------
2,252,500 Healthsource, Inc. + 75,458,750
432,600 Pacificare Health Systems, Inc. Class B + 39,907,350
492,700 Sierra Health Services + 16,751,800
------------------
132,117,900
Health Care Information Systems (1.0%)
- ------------------------------------------------------------------------------------------------
1,151,660 HBO & Co. 96,739,440
Health Care Services (4.5%)
- ------------------------------------------------------------------------------------------------
186,800 ABR Information Services, Inc. + 8,966,400
100,000 Access Health, Inc. + 4,975,000
988,820 Apria Healthcare Group, Inc. + 25,956,525
1,615,931 Columbia/HCA Healthcare Corp. 89,886,162
545,400 Health Care & Retirement Corp. + 19,975,275
2,280,348 Health Management Assoc., Inc. + 68,695,484
1,579,100 Healthsouth Rehabilitation Corp. + 50,925,975
1,241,200 Lincare Holdings, Inc. + 32,891,800
144,000 Medaphis Corp. + 5,760,000
486,500 Oxford Health Plans Inc. 33,568,500
387,786 Renal Treatment Centers, Inc. + 17,741,210
280,800 Rotech Medical Corp. + 8,459,100
1,374,100 Vencor, Inc. + 52,387,563
------------------
420,188,994
Home Building (0.7%)
- ------------------------------------------------------------------------------------------------
3,104,300 Clayton Homes, Inc. 62,086,000
Hospital Management (0.1%)
- ------------------------------------------------------------------------------------------------
211,755 Horizon/CMS Healthcare Corp. + 5,796,793
382,000 Owen Healthcare, Inc. + 7,926,500
------------------
13,723,293
Household Products (1.2%)
- ------------------------------------------------------------------------------------------------
1,592,250 Blyth Industries, Inc. + 44,583,000
1,300,000 Premark International, Inc. 67,275,000
------------------
111,858,000
Insurance (2.1%)
- ------------------------------------------------------------------------------------------------
1,350,000 American General Corp. 50,962,500
250,000 American International Group, Inc. 24,218,750
1,300,892 Amerin Corp. + 33,660,581
475,110 General Re Corp. 72,691,830
1,000,000 USF&G Corp. 16,000,000
------------------
197,533,661
Lodging (2.5%)
- ------------------------------------------------------------------------------------------------
73,100 Bristol Hotel Co. + 2,046,800
355,000 Doubletree Corp. + 8,653,125
2,035,080 HFS, Inc. + 168,911,640
427,350 La Quinta Inns, Inc. 11,431,613
1,508,500 Renaissance Hotel Group N.V. (Hong Kong)+ 37,901,063
------------------
228,944,241
Medical Supplies and Devices (4.0%)
- ------------------------------------------------------------------------------------------------
1,539,265 Boston Scientific Corp. + 78,887,331
250,900 Endosonics Corp. + 3,449,875
175,000 Johnson & Johnson 16,800,000
380,900 Lifecore Biomedical, Inc. + 6,808,588
57,400 Medisense Inc. + 1,528,275
1,062,420 Medtronic, Inc. 60,690,743
782,491 St. Jude Medical Inc. + 34,527,415
877,800 Sola International, Inc. + 24,249,225
1,199,252 Stryker Corp. 67,008,206
598,300 Thermo Cardiosystems, Inc. + 44,274,200
1,250,000 U.S. Surgical Corp. 29,531,250
204,600 Uromed Corp. + 2,736,525
------------------
370,491,633
Metals and Mining (0.3%)
- ------------------------------------------------------------------------------------------------
900,000 Freeport-McMoRan Copper & Gold Co., Inc. Class A 26,100,000
Networking Equipment (3.6%)
- ------------------------------------------------------------------------------------------------
716,700 Ascend Communications, Inc. + 27,861,713
1,553,628 Cabletron Systems, Inc. + 119,823,560
425,900 Cascade Communications Corp. + 33,326,675
1,385,350 Cisco Systems, Inc. + 115,330,388
327,500 Madge Networks N.V. (Netherlands)+ 12,936,250
296,100 Network Express, Inc. + 1,147,388
113,100 Omnipoint Corp. + 2,318,550
396,600 Shiva Corp. + 28,456,050
------------------
341,200,574
Nursing Homes (0.2%)
- ------------------------------------------------------------------------------------------------
138,300 American Medical Response + 4,287,300
306,100 Genesis Health Ventures, Inc. + 12,894,463
------------------
17,181,763
Office Equipment (0.5%)
- ------------------------------------------------------------------------------------------------
913,434 Viking Office Products, Inc. + 46,585,134
Oil and Gas (1.9%)
- ------------------------------------------------------------------------------------------------
250,000 British Petroleum PLC ADR (United Kingdom) 24,406,250
147,000 Exxon Corp. 11,796,750
324,600 Halliburton Co. 16,757,475
107,800 Mobil Corp. 11,938,850
600,000 Production Operators Corp. 20,475,000
176,400 Royal Dutch Petroleum Co. PLC ADR (Netherlands) 24,519,600
400,000 Schlumberger Ltd. 28,050,000
1,100,000 Total Corp. ADR (France) 37,950,000
------------------
175,893,925
Paper and Forest Products (0.1%)
- ------------------------------------------------------------------------------------------------
254,800 Weyerhaeuser Co. 11,752,650
Pharmaceuticals and Biotechnology (5.5%)
- ------------------------------------------------------------------------------------------------
214,449 Abbott Laboratories 9,060,470
706,400 Amgen, Inc. + 42,472,300
1,743,519 Astra AB (Sweden)+ 70,938,153
331,400 Biochem Pharmaceutical, Inc. + 14,581,600
400,128 Chiron Corp. + 46,014,720
567,800 CytoTherapeutics, Inc. + 9,652,600
241,420 Genzyme Corp. + 18,317,743
759,700 Gilead Sciences, Inc. + 27,159,275
342,700 Immulogic Pharmaceutical Corp. + 6,725,488
600,000 Lilly (Eli) & Co. 34,500,000
200,000 Mallinckrodt Group Inc. 8,025,000
347,000 Martek Biosciences Corp. + 12,145,000
561,700 Neurogen Corp. + 16,991,425
490,600 Pfizer, Inc. 33,728,750
1,800,000 Pharmacia & Upjohn, Inc. 75,375,000
5,469 Roche Holdings AG (Switzerland) 39,930,235
800,000 Smithkline Beecham PLC ADR (United Kingdom) 45,000,000
168,900 Vical, Inc. + 2,871,300
------------------
513,489,059
Photography (1.6%)
- ------------------------------------------------------------------------------------------------
1,000,000 Eastman Kodak Co. 73,375,000
1,631,600 Polaroid Corp. 73,218,050
------------------
146,593,050
Publishing (1.2%)
- ------------------------------------------------------------------------------------------------
540,800 Harcourt General, Inc. 21,091,200
250,000 McGraw-Hill, Inc. 22,250,000
67,400 Mecklermedia Corp. + 878,306
400,000 Tribune Co. 25,050,000
474,167 Wolters Kluwer N.V. (Netherlands) 46,450,751
------------------
115,720,257
Railroads (0.4%)
- ------------------------------------------------------------------------------------------------
450,000 Burlington Northern Santa Fe Corp. 36,843,750
Restaurants (2.1%)
- ------------------------------------------------------------------------------------------------
916,600 Apple South, Inc. 16,155,075
1,277,700 Applebee's International, Inc. 23,797,163
2,071,900 Boston Chicken, Inc. + 70,444,600
1,804,225 J.D. Wetherspoon PLC (United Kingdom) 20,418,847
623,300 Landry's Seafood Restaurants, Inc. + 9,271,588
628,300 Lone Star Steakhouse & Saloon + 20,498,288
1,068,065 Outback Steakhouse, Inc. + 32,442,474
------------------
193,028,035
Retail (4.2%)
- ------------------------------------------------------------------------------------------------
784,400 Bed Bath & Beyond, Inc. + 31,130,875
464,381 Boise Cascade Office Products 23,915,622
250,000 Dayton Hudson Corp. 18,687,500
1,500,000 Federated Department Stores + 40,500,000
1,021,800 General Nutrition Companies, Inc. + 22,351,875
1,352,550 Heilig-Meyers Co. 20,964,525
468,000 Hollywood Entertainment Corp. + 3,685,500
650,748 Home Depot, Inc. 29,934,408
365,000 MSC Industrial Direct Co., Inc. Class A + 9,398,750
419,600 Neostar Retail Group, Inc. + 2,202,900
6,814,600 Next PLC (United Kingdom) 47,222,043
1,254,745 Office Depot, Inc. + 23,683,312
1,518,000 Officemax, Inc. + 34,914,000
1,600,000 Revco D.S., Inc. + 45,000,000
721,900 Staples, Inc. + 17,776,788
592,459 Sunglass Hut Intl. + 16,477,766
------------------
387,845,864
Semiconductors (3.8%)
- ------------------------------------------------------------------------------------------------
471,700 Altera Corp. + 31,073,238
1,139,400 Analog Devices Inc. + 25,636,500
723,100 Atmel Corp. + 20,608,350
536,300 Credence Systems Corp. + 13,206,388
140,700 Cyberoptics Corp. + 4,502,400
246,900 Integrated Process Equipment Corp. + 5,431,800
782,300 KLA Instruments Corp. + 23,077,850
1,858,896 Linear Technology Corp. 82,023,786
2,275,210 Maxim Integrated Products Inc. + 80,769,955
900,000 National Semiconductor Corp. + 15,525,000
652,100 Silicon Valley Group, Inc. + 17,036,113
1,020,300 Xilinx, Inc. + 39,409,088
------------------
358,300,468
Specialty Consumer Products (1.4%)
- ------------------------------------------------------------------------------------------------
1,491,411 Department 56, Inc. + 59,097,161
839,491 Fastenal Co. 28,437,758
151,700 Gemstar International Group Ltd. (Hong Kong)+ 4,968,175
589,020 Luxottica Group S.P.A. ADR (Italy) 40,200,615
------------------
132,703,709
Steel (0.4%)
- ------------------------------------------------------------------------------------------------
624,041 Nucor Corp. 36,272,383
Supermarkets (0.1%)
- ------------------------------------------------------------------------------------------------
12,875 Carrefour Supermarche (France) 8,279,305
Telecommunication Equipment (2.4%)
- ------------------------------------------------------------------------------------------------
969,900 Adtran, Inc. + 26,672,250
515,800 Glenayre Technologies, Inc. + 20,632,000
533,900 P-Com, Inc. + 7,474,600
303,300 Pairgain Technologies, Inc. + 14,330,925
263,200 Premisys Communications, Inc. + 11,580,800
1,179,300 Stratacom, Inc. + 88,447,500
549,800 U.S. Robotics Corp. + 48,519,850
134,900 VideoServer, Inc. + 3,237,600
------------------
220,895,525
Telephone Services (2.8%)
- ------------------------------------------------------------------------------------------------
496,000 Colonial Data Technologies Corp. + 8,804,000
1,000,000 GTE Corp. 46,000,000
2,450,000 MCI Communications Corp. 70,131,250
750,000 SBC Communications, Inc. 42,468,750
1,650,000 Sprint Corp. 71,156,250
666,800 WorldCom, Inc. + 24,421,550
------------------
262,981,800
Textiles (0.2%)
- ------------------------------------------------------------------------------------------------
391,900 St. John Knits, Inc. 18,076,388
Tobacco (0.5%)
- ------------------------------------------------------------------------------------------------
1,350,000 UST, Inc. 45,393,750
Trucking (0.3%)
- ------------------------------------------------------------------------------------------------
1,300,000 Ryder System, Inc. 30,387,500
Wireless Communications (1.4%)
- ------------------------------------------------------------------------------------------------
1,200,000 Airtouch Communications, Inc. + 33,900,000
3,476,660 Paging Network, Inc. + 88,654,830
547,400 Vanguard Cellular Systems, Inc. + 11,495,400
------------------
134,050,230
------------------
Total Common Stocks (cost $6,527,682,374) $8,991,774,645
PREFERRED STOCKS (0.1%)*(cost $16,466,707)
NUMBER OF SHARES VALUE
- ------------------------------------------------------------------------------------------------
157,130 Hornbach Holding DM 2.2 Pfd. (Germany) $12,920,140
WARRANTS ( - )*(cost$ - ) EXPIRATION
NUMBER OF WARRANTS DATE VALUE
- ------------------------------------------------------------------------------------------------
10,673 Jan Bell Marketing, Inc. + 12/16/98 $672
SHORT-TERM INVESTMENTS (4.0%)*
PRINCIPAL AMOUNT VALUE
- ------------------------------------------------------------------------------------------------
$26,000,000 Federal Home Loan Mortgage Corp.
6.48s, 3/4/96 $25,851,260
20,000,000 Federal Home Loan Mortgage Corp. 6.31s, 3/7/96 19,896,750
4,000,000 Federal National Mortgage Assoc. 5.48s, 3/6/96 3,979,907
30,000,000 Federal National Mortgage Assoc. 5.27s, 4/12/96 29,694,700
30,000,000 Federal National Mortgage Assoc. 5.23s, 4/4/96 29,729,100
20,000,000 Federal National Mortgage Assoc. 4.98s, 7/19/96 19,544,195
20,000,000 Fleet Mortgage Corp. 5.47s, 3/8/96 19,893,639
10,000,000 Ford Motor Company Credit Corp. 5.62s, 2/5/97 9,993,756
20,000,000 General Electric Capital Corp. 5.10s, 7/15/96 19,544,417
20,000,000 GTE North 5.38s, 2/26/96 19,919,300
20,000,000 JP Morgan Co. Inc. 5.565s, 3/6/96 19,894,978
25,000,000 Metlife Funding Corp. 6.63s, 2/16/96 24,941,354
30,000,000 Sheffield Receivables Corp. 5.36s, 3/26/96 29,758,800
20,000,000 USAA Capital Corp. 5.63s, 2/9/96 19,974,978
81,372,000 Interest in $942,854,000 joint repurchase
agreement dated January 31, 1996 with
Morgan Stanley & Co. Inc. due February 1, 1996
with respect to various U.S. Treasury
obligations-maturity value of $81,385,223
for an effective yield of 5.85% 81,385,223
------------------
Total Short-Term Investments (cost $374,418,494) $374,002,357
------------------
Total Investments (cost $6,918,567,575)*** $9,378,697,814
- ------------------------------------------------------------------------------------------------
* Percentages indicated are based on net assets of $9,337,245,972.
+ Non-income-producing security.
*** The aggregate identified cost on a tax basis is $6,933,349,493, resulting in a gross
unrealized appreciaton and depreciation of $2.589,199,336 and $143,851,015, respectively,
or net unrealized appreciaton of $2,445,348,321.
ADR after the name of a foreign holding, stands for American Depository Receipt, representing
ownership of foreign securities on deposit with a domestic custodian bank.
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of assets and liabilities
January 31,1996 (Unaudited)
<S> <C>
Assets
- ---------------------------------------------------------------------------------------------------
Investments in securities, at value
(identified cost $6,918,567,575) (Note 1) $9,378,697,814
- ---------------------------------------------------------------------------------------------------
Cash 371
- ---------------------------------------------------------------------------------------------------
Dividends, interest and other receivables 4,144,879
- ---------------------------------------------------------------------------------------------------
Receivable for shares of the fund sold 41,597,695
- ---------------------------------------------------------------------------------------------------
Receivable for securities sold 94,763,003
- ---------------------------------------------------------------------------------------------------
Total assets $9,519,203,762
Liabilities
- ---------------------------------------------------------------------------------------------------
Distributions payable to shareholders 17,188
- ---------------------------------------------------------------------------------------------------
Payable for securities purchased 155,241,935
- ---------------------------------------------------------------------------------------------------
Payable for shares of the fund repurchased 6,822,121
- ---------------------------------------------------------------------------------------------------
Payable for compensation of Manager (Note 2) 11,155,275
- ---------------------------------------------------------------------------------------------------
Payable for investor servicing and custodian fees (Note 2) 4,494,040
- ---------------------------------------------------------------------------------------------------
Payable for compensation of Trustees (Note 2) 5,394
- ---------------------------------------------------------------------------------------------------
Payable for administrative services (Note 2) 5,118
- ---------------------------------------------------------------------------------------------------
Payable for distribution fees (Note 2) 3,358,629
- ---------------------------------------------------------------------------------------------------
Other accrued expenses 858,090
- ---------------------------------------------------------------------------------------------------
Total liabilities 181,957,790
- ---------------------------------------------------------------------------------------------------
Net assets $9,337,245,972
Represented by
- ---------------------------------------------------------------------------------------------------
Paid-in-capital (Notes 1 and 4) $6,682,900,270
- ---------------------------------------------------------------------------------------------------
Accumulated net investment loss (Note 1) (12,779,455)
- ---------------------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions and
foreign currency transactions (Note1) 206,997,584
- ---------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments and assets and
liabilities in foreign currencies (Note 1) 2,460,127,573
- ---------------------------------------------------------------------------------------------------
Total -- Representing net assets applicable to
capital shares outstanding $9,337,245,972
Computation of net asset value and offering price
- ---------------------------------------------------------------------------------------------------
Net asset value and redemption price of class A shares
($6,232,058,377 divided by 404,680,351 shares) $15.40
- ---------------------------------------------------------------------------------------------------
Offering price per class A share (100/94.25 of $15.40)* $16.34
- ---------------------------------------------------------------------------------------------------
Net asset value and offering price of class B shares
($2,613,833,172 divided by 175,600,527 shares)** $14.89
- ---------------------------------------------------------------------------------------------------
Net asset value and redemption price of class M shares
($48,509,700 divided by 3,166,028 shares) $15.32
- ---------------------------------------------------------------------------------------------------
Offering price per class M share (100/96.50 of $15.32)* $15.88
- ---------------------------------------------------------------------------------------------------
Net asset value and offering price of class Y shares
($442,844,723 divided by 28,576,306 shares) $15.50
- ---------------------------------------------------------------------------------------------------
* On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the
offering price is reduced.
** Redemption price per share is equal to net asset value less any applicable contingent deferred
sales charge.
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of operations
Six months ended January 31,1996 (Unaudited)
<S> <C>
Investment income:
- ---------------------------------------------------------------------------------------------------
Dividends (net of foreign tax of $297,545) $30,222,206
- ---------------------------------------------------------------------------------------------------
Interest 6,488,247
- ---------------------------------------------------------------------------------------------------
Total investment income 36,710,453
Expenses:
- ---------------------------------------------------------------------------------------------------
Compensation of Manager (Note 2) 21,103,257
- ---------------------------------------------------------------------------------------------------
Investor servicing and custodian fees (Note 2) 9,066,058
- ---------------------------------------------------------------------------------------------------
Compensation of Trustees (Note 2) 63,370
- ---------------------------------------------------------------------------------------------------
Administrative services (Note 2) 30,846
- ---------------------------------------------------------------------------------------------------
Distribution fees -- Class A (Note 2) 6,906,647
- ---------------------------------------------------------------------------------------------------
Distribution fees -- Class B (Note 2) 11,135,396
- ---------------------------------------------------------------------------------------------------
Distribution fees -- Class M (Note 2) 105,486
- ---------------------------------------------------------------------------------------------------
Reports to shareholders 289,182
- ---------------------------------------------------------------------------------------------------
Auditing 61,155
- ---------------------------------------------------------------------------------------------------
Legal 48,844
- ---------------------------------------------------------------------------------------------------
Postage 84,283
- ---------------------------------------------------------------------------------------------------
Registration fees 583,973
- ---------------------------------------------------------------------------------------------------
Other expenses 158,828
- ---------------------------------------------------------------------------------------------------
Total expenses 49,637,325
- ---------------------------------------------------------------------------------------------------
Expense reduction (Note 2) (147,417)
- ---------------------------------------------------------------------------------------------------
Net expenses 49,489,908
- ---------------------------------------------------------------------------------------------------
Net investment loss (12,779,455)
- ---------------------------------------------------------------------------------------------------
Net realized gain on investments (Notes 1 and 3) 398,424,806
- ---------------------------------------------------------------------------------------------------
Net realized loss on forward currency translation (Note 1) (9,908)
- ---------------------------------------------------------------------------------------------------
Net unrealized depreciation on foreign currency translation during the period (3,857)
- ---------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments during the period 620,138,566
- ---------------------------------------------------------------------------------------------------
Net gain on investment transactions 1,018,549,607
- ---------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $1,005,770,152
- ---------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of changes in net assets
Six months ended Year ended
January 31 July 31
1996* 1995
<S> <C> <C>
- --------------------------------------------------------------------------------------------------- -------------------
Increase in net assets
- --------------------------------------------------------------------------------------------------- -------------------
Operations:
- --------------------------------------------------------------------------------------------------- -------------------
Net investment loss $(12,779,455) $(272,404)
- --------------------------------------------------------------------------------------------------- -------------------
Net realized gain on investments and
foreign currency transactions 398,414,898 340,186,139
- --------------------------------------------------------------------------------------------------- -------------------
Net unrealized appreciation of investments and
assets and liabilities in foreign currencies 620,134,709 1,308,965,207
- --------------------------------------------------------------------------------------------------- -------------------
Net increase in net assets resulting from operations 1,005,770,152 1,648,878,942
- --------------------------------------------------------------------------------------------------- -------------------
Distributions to shareholders:
- --------------------------------------------------------------------------------------------------- -------------------
From net realized gain on investments:
Class A (317,078,060) (145,558,356)
- --------------------------------------------------------------------------------------------------- -------------------
Class B (135,044,884) (49,513,213)
- --------------------------------------------------------------------------------------------------- -------------------
Class M (2,100,491) (12,706)
- --------------------------------------------------------------------------------------------------- -------------------
Class Y (22,691,613) (4,827,692)
- --------------------------------------------------------------------------------------------------- -------------------
Increase from capital share transactions (Note 4) 1,672,019,972 1,642,355,205
- --------------------------------------------------------------------------------------------------- -------------------
Total increase in net assets 2,200,875,076 3,091,322,180
- --------------------------------------------------------------------------------------------------- -------------------
Net assets
- --------------------------------------------------------------------------------------------------- -------------------
Beginning of period 7,136,370,896 4,045,048,716
- --------------------------------------------------------------------------------------------------- -------------------
End of period (including accumulated net
investment loss of $12,779,455 and $0,
respectively) $9,337,245,972 $7,136,370,896
- --------------------------------------------------------------------------------------------------- -------------------
* Unaudited.
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
(For a share outstanding throughout the period)
- -----------------------------------------------------------------------------------------------
Six April 1, 1994
months Year (commencement of Six months
ended ended operations) to ended
January 31 July 31 July 31 January 31
- -----------------------------------------------------------------------------------------------
1996* 1995 1994 1996*
- -----------------------------------------------------------------------------------------------
Class Y Class M
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value,
beginning of period $14.48 $11.22 $11.24 $14.37
- -----------------------------------------------------------------------------------------------
Investment operations
- -----------------------------------------------------------------------------------------------
Net investment income (loss) .01 .03 -- (.02)
- -----------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 1.87 3.74 (.02) 1.83
- -----------------------------------------------------------------------------------------------
Total from investment
operations 1.88 3.77 (.02) 1.81
- -----------------------------------------------------------------------------------------------
Less distributions from:
- -----------------------------------------------------------------------------------------------
Net investment income -- -- -- --
- -----------------------------------------------------------------------------------------------
Net realized gain on
investments (.86) (.51) -- (.86)
- -----------------------------------------------------------------------------------------------
Total distributions (.86) (.51) -- (.86)
- -----------------------------------------------------------------------------------------------
Net asset value, end of period $15.50 $14.48 $11.22 $15.32
- -----------------------------------------------------------------------------------------------
Total investment return at
net asset value (%)(a) 13.29(b) 34.90 (.18)(b) 12.90(b)
- -----------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $442,845 $351,817 $82,102 $48,510
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets (%)(c) .39(b) .83 .31(b) .72(b)
- -----------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets (%) .07(b) .39 (.05)(b) (.27)(b)
- -----------------------------------------------------------------------------------------------
Portfolio turnover (%) 28.79(b) 65.43 57.74 28.79(b)
- -----------------------------------------------------------------------------------------------
<CAPTION>
Financial Highlights (Continued)
- -------------------------------------------------------------------------------------------
December 1, 1994 Six
(commencement months
operations) to ended
July 31 January 31 Year ended July 31
- -------------------------------------------------------------------------------------------
1995 1996* 1995 1994
- -------------------------------------------------------------------------------------------
Class M Class B
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value,
beginning of period $11.79 $14.01 $10.97 $10.89
- -------------------------------------------------------------------------------------------
Investment operations
- -------------------------------------------------------------------------------------------
Net investment income (loss) (.01) (.03) (.06) (.05)
- -------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 3.10 1.77 3.61 .59
- -------------------------------------------------------------------------------------------
Total from investment
operations 3.09 1.74 3.55 .54
- -------------------------------------------------------------------------------------------
Less distributions from:
- -------------------------------------------------------------------------------------------
Net investment income -- -- -- --
- -------------------------------------------------------------------------------------------
Net realized gain on
investments (.51) (.86) (.51) (.46)
- -------------------------------------------------------------------------------------------
Total distributions (.51) (.86) (.51) (.46)
- -------------------------------------------------------------------------------------------
Net asset value, end of period $14.37 $14.89 $14.01 $10.97
- -------------------------------------------------------------------------------------------
Total investment return at
net asset value (%)(a) 27.42(b) 12.74(b) 33.65 4.71
- -------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $19,004 $2,613,833 $1,870,370 $911,069
- -------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets (%)(c) 1.06(b) .90(b) 1.82 1.84
- -------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets (%) (.24)(b)) (.44)(b) (.58) (.91)
- -------------------------------------------------------------------------------------------
Portfolio turnover (%) 65.43 28.79(b) 65.43 57.74
- -------------------------------------------------------------------------------------------
<CAPTION>
Financial Highlights (Continued)
- -------------------------------------------------------------------------------------------
April 27, 1992** Six
(commencement months
operations) to ended
July 31 January 31
- -------------------------------------------------------------------------------------------
1993 1992 1996* 1995
- -------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------
Net asset value,
beginning of period $9.63 $9.34 $14.42 $11.19
- -------------------------------------------------------------------------------------------
Investment operations
- -------------------------------------------------------------------------------------------
Net investment income (loss) (.03) (.04) (.01) .02
- -------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 1.81 .33 1.85 3.72
- -------------------------------------------------------------------------------------------
Total from investment
operations 1.78 .29 1.84 3.74
- -------------------------------------------------------------------------------------------
Less distributions from:
- -------------------------------------------------------------------------------------------
Net investment income -- -- -- --
- -------------------------------------------------------------------------------------------
Net realized gain on
investments (.52) -- (.86) (.51)
- -------------------------------------------------------------------------------------------
Total distributions (.52) -- (.86) (.51)
- -------------------------------------------------------------------------------------------
Net asset value, end of period $10.89 $9.63 $15.40 $14.42
- -------------------------------------------------------------------------------------------
Total investment return at
net asset value (%)(a) 18.79 3.11(b) 13.07(b) 34.72
- -------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $408,361 $42,492 $6,232,058 $4,895,180
- -------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets (%)(c) 1.87 .63(b) .52(b) 1.07
- -------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets (%) (.91) (.39)(b) (.06)(b) .17
- -------------------------------------------------------------------------------------------
Portfolio turnover (%) 64.62 44.17 28.79(b) 65.43
- -------------------------------------------------------------------------------------------
<CAPTION>
Financial Highlights (Continued)
- -------------------------------------------------------------------------------------------
Year ended July 31
- -------------------------------------------------------------------------------------------
1994 1993 1992 1991
- -------------------------------------------------------------------------------------------
Class A
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value,
beginning of period $11.02 $9.67 $9.00 $7.98
- -------------------------------------------------------------------------------------------
Investment operations
- -------------------------------------------------------------------------------------------
Net investment income (loss) (.02) (.02) .02 .02
- -------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments .65 1.89 1.16 1.70
- -------------------------------------------------------------------------------------------
Total from investment
operations .63 1.87 1.18 1.72
- -------------------------------------------------------------------------------------------
Less distributions from:
- -------------------------------------------------------------------------------------------
Net investment income -- -- (.03) (.07)
- -------------------------------------------------------------------------------------------
Net realized gain on
investments (.46) (.52) (.48) (.63)
- -------------------------------------------------------------------------------------------
Total distributions (.46) (.52) (.51) (.70)
- -------------------------------------------------------------------------------------------
Net asset value, end of period $11.19 $11.02 $9.67 $9.00
- -------------------------------------------------------------------------------------------
Total investment return at
net asset value (%)(a) 5.49 19.69 13.39 24.04
- -------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $3,051,878 $2,403,332 $1,549,128 $1,016,539
- -------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets (%)(c) 1.10 1.12 1.20 1.10
- -------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets (%) (.18) (.14) .27 .29
- -------------------------------------------------------------------------------------------
Portfolio turnover (%) 57.74 64.62 44.17 49.43
- -------------------------------------------------------------------------------------------
See page 28 for Notes to Financial Highlights.
* Unaudited
** Per share net investment income has been determined on the basis of weighted average
number of shares outstanding during the period.
(a) Total investment return assumes dividend reinvestment and does not reflect the effect
of sales charges.
(b) Not annualized.
(c) The ratio of expenses to average net assets for the period ended January 31, 1996
includes amounts paid through expense offset arrangements. Prior period ratios excluded
these amounts (See Note 2).
</TABLE>
Notes to financial statements
January 31, 1996 (Unaudited)
Note 1
Significant accounting policies
The fund is registered under the Investment Company Act of 1940, as
amended, as a diversified, open-end management investment company. The
fund invests primarily in common stocks of companies that Putnam
Investment Management, Inc. ("Putnam Management"), the fund's Manager, a
wholly-owned subsidiary of Putnam Investments, Inc., believes have
potential for capital appreciation significantly greater than that of
the market averages.
The fund offers class A, class B, class Y and class M shares. Class A
shares are sold with a maximum front-end sales charge of 5.75%. Class B
shares, which convert to class A shares after eight years, do not pay a
front-end sales charge but pay a higher ongoing distribution fee than
class A shares, and may be subject to a contingent deferred sales
charge, if those shares are redeemed within six years of purchase. Class
Y shares are subject to the same fees and expenses as class B shares,
except that class Y 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 and class Y shares. Class Y shares, which are sold at net asset value,
are generally subject to the same expenses as class A shares and class B
shares, but do not bear a distribution fee. Class Y shares are sold to
defined contribution plans that initially invest at least $250 million
in a combination of Putnam Funds.
Expenses of the fund are borne pro-rata by the holders of each class of
shares, except that each class bears expenses unique to that class
(including the distribution fees applicable to such class). Each class
votes as a class only with respect to its own distribution plan or other
matters on which a class vote is required by law or determined by the
Trustees. Shares of each class would receive their pro-rata share of the
net assets of the fund, if the fund were liquidated. In addition, the
Trustees declare separate dividends on each class of shares.
The following is a summary of significant accounting policies
consistently followed by the fund in the preparation of its financial
statements. The preparation of financial statements are in conformity
with generally accepted accounting principles and requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities. Actual results could differ from those
estimates.
A) Security valuation Investments for which market quotations are
readily available are stated at market value, which is determined using
the last reported sale price, or, if no sales are reported--as in the
case of some securities traded over the counter--the last reported bid
price, except that certain U.S. government obligations are stated at the
mean between the bid and asked prices. Short-term investments having
remaining maturities of 60 days or less are stated at amortized cost,
which approximates market value, and other investments are stated at
fair value following procedures approved by the Trustees.
B) Joint trading account Pursuant to an exemptive order issued by the
Securities and Exchange Commission, the fund may transfer uninvested
cash balances into a joint trading account along with the cash of other
registered investment companies managed by Putnam Management and certain
other accounts. These balances may be invested in one or more repurchase
agreements and/or short-term money market instruments.
C) Repurchase agreements The fund, or any joint trading account, through
its custodian, receives delivery of the underlying securities, the
market value of which at the time of purchase is required to be in an
amount at least equal to 102% of the resale price, including accrued
interest. Putnam Management is responsible for determining that the
value of these underlying securities is at all times at least equal to
the resale price, including accrued interest.
D) Security transactions and related investment income Security
transactions are accounted for on the trade date (date the order to buy
or sell is executed). Interest income is recorded on the accrual basis
and dividend income is recorded on the ex-dividend date, except that
certain dividends from foreign securities are recorded as soon as the
fund is informed of the ex-dividend date.
E) Federal taxes It is the policy of the fund to distribute all of its
income within the prescribed time and otherwise comply with the
provisions of the Internal Revenue Code applicable to regulated
investment companies. It is also the intention of the fund to distribute
an amount sufficient to avoid imposition of any excise tax under Section
4982 of the Internal Revenue Code of 1986. Therefore, no provision has
been made for federal taxes on income, capital gains or unrealized
appreciation on securities held and for excise tax on income and capital
gains.
F) Foreign currency translation The accounting records of the fund are
maintained in U.S. dollars. The market value of foreign securities,
currency holdings, other assets and liabilities are recorded in the
books and records of the fund after translation to U.S. dollars based on
the exchange rates on that day. The cost of each security is determined
using historical exchange rates. Income and withholding taxes are
translated at prevailing exchange rates when accrued or incurred. The
fund does not isolate that portion of realized or unrealized gains or
losses resulting from changes in the foreign exchange rate on
investments from fluctuations arising from changes in the market prices
of the securities. Such fluctuations are included with the net realized
and unrealized gain or loss on investments. Net realized gains and
losses on foreign currency transactions represent net exchange gains or
losses on closed forward currency contracts, disposition of foreign
currencies and the difference between the amount of investment income
and foreign withholding taxes recorded on the fund's books and the U.S.
dollar equivalent amounts actually received or paid. Net unrealized
gains and losses on foreign currency transactions arise from changes in
the value of open forward currency contracts and assets and liabilities
other than investments at the period end, resulting from changes in the
exchange rate.
G) Distributions to shareholders Distributions to shareholders are
recorded by the fund on the ex-dividend date. The amount and character
of income and gains to be distributed are determined in accordance with
income tax regulations which may differ from generally accepted
accounting principles. Reclassifications are made to the fund's capital
accounts to reflect income and gains available for distribution (or
available capital loss carryovers) under income tax regulations.
Note 2
Management fee, administrative
services, and other transactions
Compensation of Putnam Management, for management and investment
advisory services is paid quarterly based on the average net assets of
the fund for the quarter. Such fee is based on the following annual
rates: 0.70% of the first $500 million of average net assets, 0.60% of
the next $500 million, 0.55% of the next $500 million, and 0.50% of any
amount over $1.5 billion, subject, under current law, to reduction in
any year to the extent that expenses (exclusive of brokerage, interest,
taxes, distribution fees, credits allowed by PFTC and extraordinary
expenses) of the fund exceed 2.5% of the first $30 million of average
net assets, 2.0% of the next $70 million and 1.5% of any amount over
$100 million, and by the amount of certain brokerage commissions and
fees (less expenses) received by affiliates of the Manager on the fund's
portfolio transactions.
The fund reimburses Putnam Management for the compensation and related
expenses of certain officers of the fund and their staff who provide
administrative services to the fund.
The aggregate amount of all such reimbursements is determined annually
by the Trustees.
Trustees of the fund receive an annual Trustees fee of $7,798 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 adopted a Trustee Fee Deferral Plan (the "Plan") which allows
the Trustees to defer the receipt of all or a portion of Trustees Fees
payable on or after July 1, 1995. The deferred fees remain in the fund
and are invested in the fund or in other Putnam funds until distribution
in accordance with the Plan.
Custodial functions for the fund's assets are provided by Putnam
Fiduciary Trust Company (PFTC), a wholly-owned subsidiary of Putnam
Investments, Inc. Investor servicing agent functions are provided by
Putnam Investor Services, a division of PFTC.
For the six months ended January 31, 1996, fund expenses were reduced by
$147,417 under expense offset arrangements with PFTC. Investor servicing
and custodian fees reported in the Statement of operations exclude these
credits. The fund could have invested the assets utilized in connection
with the expense offset arrangements in an income producing asset if it
had not entered into such arrangements.
The fund has adopted distribution plans (the "Plans") with respect to
its class A, class B and class M shares pursuant to Rule 12b-1 under the
Investment Company Act of 1940. The purpose of the Plans is to
compensate Putnam Mutual Funds Corp., a wholly-owned subsidiary of
Putnam Investments, Inc., for services provided and expenses incurred by
it in distributing shares of the fund. The Plans provide for payments by
the fund to Putnam Mutual Funds Corp. at an annual rate up to 0.35%,
1.00% and 1.00% of the average net assets attributable to class A, class
B and class M shares, respectively. The Trustees have approved payment
by the fund at an annual rate of 0.25%, 1.00% and 0.75% of the average
net assets attributable to class A, class B and class M shares,
respectively.
For the six months ended January 31, 1996, Putnam Mutual Funds Corp.,
acting as underwriter received net commissions of $2,519,577 and $52,906
from the sale of class M and class Y shares, respectively and received
$1,319,455 in contingent deferred sales charges from redemptions of
class B shares. A deferred sales charge of up to 1% is assessed on
certain redemptions of class A shares. For the six months ended January
31, 1996, Putnam Mutual Funds Corp., acting as underwriter received
$26,628 on class A redemptions.
Note 3
Purchases and sales of securities
During the six months ended January 31, 1996, purchases and sales of
investment securities other than short-term investments aggregated
$3,474,127,379 and $2,295,005,364, respectively. There were no purchases
and sales of U.S. government obligations. In determining the net gain or
loss on securities sold, the cost of securities has been determined on
the identified cost basis.
Note 4
Capital shares
At January 31, 1996, there was an unlimited number of shares of
beneficial interest authorized. Transactions in capital shares were as
follows:
Six months ended
January 31, 1996
- ----------------------------------------------------
Class A Shares Amount
- ----------------------------------------------------
Shares sold 85,616,790 $1,286,813,501
- ----------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 20,777,506 304,181,204
- ----------------------------------------------------
106,394,296 1,590,994,705
Shares
repurchased (41,289,148) (620,824,915)
- ----------------------------------------------------
Net increase 65,105,148 $970,169,790
- ----------------------------------------------------
Year ended
July 31, 1995
- ----------------------------------------------------
Class A Shares Amount
- ----------------------------------------------------
Shares sold 148,502,110 $1,832,997,253
- ----------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 12,438,947 139,191,797
- ----------------------------------------------------
160,941,057 1,972,189,050
Shares
repurchased (94,138,474) (1,170,082,797)
- ----------------------------------------------------
Net increase 66,802,583 $802,106,253
- ----------------------------------------------------
Six months ended
January 31, 1996
- ----------------------------------------------------
Class B Shares Amount
Shares sold 43,275,105 $630,957,891
- ----------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 8,895,764 125,963,673
- ----------------------------------------------------
52,170,869 756,921,564
Shares
repurchased (10,051,074) (146,444,533)
- ----------------------------------------------------
Net increase 42,119,795 $610,477,031
- ----------------------------------------------------
Year ended
July 31, 1995
- ----------------------------------------------------
Class B Shares Amount
- ----------------------------------------------------
Shares sold 62,162,491 $748,057,897
- ----------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 4,231,663 46,209,683
- ----------------------------------------------------
66,394,154 794,267,580
Shares
repurchased (15,970,928) (191,170,815)
- ----------------------------------------------------
Net increase 50,423,226 $603,096,765
- ----------------------------------------------------
Six months ended
January 31, 1996
- ----------------------------------------------------
Class Y Shares Amount
- ----------------------------------------------------
Shares sold 5,404,738 $81,599,557
- ----------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 1,540,524 22,691,919
- ----------------------------------------------------
6,945,262 104,291,476
Shares
repurchased (2,660,847) (40,372,562)
- ----------------------------------------------------
Net increase 4,284,415 $63,918,914
- ----------------------------------------------------
Year ended
July 31, 1995
- ----------------------------------------------------
Class Y Shares Amount
- ----------------------------------------------------
Shares sold 19,003,487 $246,497,467
- ----------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 430,221 4,827,084
- ----------------------------------------------------
19,433,708 251,324,551
Shares
repurchased (2,461,794) (31,084,728)
- ----------------------------------------------------
Net increase 16,971,914 $220,239,823
- ----------------------------------------------------
Six months ended
January 31, 1996
- ----------------------------------------------------
Class M Shares Amount
- ----------------------------------------------------
Shares sold 1,931,282 $28,843,626
- ----------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 137,680 2,005,997
- ----------------------------------------------------
2,068,962 30,849,623
Shares
repurchased (225,264) (3,395,386)
- ----------------------------------------------------
Net increase 1,843,698 $27,454,237
- ----------------------------------------------------
December 1, 1994
(commencement of
operations) to
July 31, 1995
- ----------------------------------------------------
Class M Shares Amount
- ----------------------------------------------------
Shares sold 1,405,252 $17,976,348
- ----------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 1,112 12,448
- ----------------------------------------------------
1,406,364 17,988,796
Shares
repurchased (84,034) (1,076,432)
- ----------------------------------------------------
Net increase 1,322,330 $16,912,364
- ----------------------------------------------------
Our commitment to quality service
* CHOOSE AWARD-WINNING SERVICE
Putnam Investor Services has won the DALBAR Quality Tested Service Seal
for the past six years. In 1995, over 146,000 tests of 56 shareholder
service components demonstrated that Putnam outperformed the industry
standard in every category.
* HELP YOUR INVESTMENT GROW
Set up a systematic program for investing with as little as $25 a month
from a Putnam money market fund or from your checking or savings
account.*
* SWITCH FUNDS EASILY
You can move money from one account to another with the same class of
shares without a service charge. (This privilege is subject to change or
termination.)
* ACCESS YOUR MONEY QUICKLY
You can get checks sent regularly or redeem shares any business day at
the then-current net asset value, which may be more or less than the
original cost of the shares.
For details about any of these or other services, contact your financial
advisor or call the toll-free number shown below and speak with a
helpful Putnam representative.
To make an additional investment in this or any other Putnam fund,
contact your financial advisor or call our toll-free number:
1-800-225-1581.
* Regular investing of course, does not guarantee a profit or
protect against a loss in a declining market.
Fund information
INVESTMENT MANAGER
Putnam Investment
Management, Inc.
One Post Office Square
Boston, MA 02109
marketing services
Putnam Mutual Funds Corp.
One Post Office Square
Boston, MA 02109
CUSTODIAN
Putnam Fiduciary Trust Company
LEGAL COUNSEL
Ropes & Gray
TRUSTEES
George Putnam, Chairman
William F. Pounds, Vice Chairman
Jameson Adkins Baxter
Hans H. Estin
John A. Hill
Elizabeth T. Kennan
Lawrence J. Lasser
Robert E. Patterson
Donald S. Perkins
George Putnam, III
Eli Shapiro
A.J.C. Smith
W. Nicholas Thorndike
OFFICERS
George Putnam
President
Charles E. Porter
Executive Vice President
Patricia C. Flaherty
Senior Vice President
John D. Hughes
Senior Vice President and Treasurer
Lawrence J. Lasser
Vice President
Gordon H. Silver
Vice President
Roland W. Gillis
Vice President and Fund Manager
Charles H. Swanberg
Vice President and Fund Manager
Robert R. Beck
Vice President and Fund Manager
William N. Shiebler
Vice President
John R. Verani
Vice President
Paul M. O'Neil
Vice President
Beverly Marcus
Clerk and Assistant Treasurer
This report is for the information of shareholders of Putnam Voyager
Fund. It may also be used as sales literature when preceded or
accompanied by the current prospectus, which gives details of sales
charges, investment objectives, and operating policies of the fund, and
the most recent copy of Putnam's Quarterly Performance Summary. For
more information, or to request a prospectus, call toll free:
1-800-225-1581.
Shares of mutual funds are not deposits or obligations of, or guaranteed
or endorsed by, any financial institution, are not insured by the
Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board
or any other agency, and involve risk, including the possible loss of
principal amount invested.
PUTNAM INVESTMENTS
The Putnam Funds
One Post Office Square
Boston, Massachusetts 02109
23299-007/883/530 3/96
Bulk Rate
U.S. Postage
PAID
Putnam
Investments
