Putnam
Voyager
Fund
SEMIANNUAL REPORT ON PERFORMANCE AND OUTLOOK
1-31-99
[LOGO: BOSTON * LONDON * TOKYO]
Fund highlights
* Putnam Voyager Fund's risk-adjusted returns have attracted the attention
of independent rating agency Morningstar. The research firm gave the
fund's class A shares a 4-star rating -- out of a possible 5 -- for
overall performance based on the fund's average annual returns for the 3-,
5-, and 10-year periods ended January 31, 1999. Of the 2,859 domestic
equity funds rated, only 22.5% received 4 stars.*
* "While short-term volatility may be in store, over the longer term we
think growth stock valuations will continue to rise."
-- Roland W. Gillis, manager
Putnam Voyager Fund
CONTENTS
4 Report from Putnam Management
9 Fund performance summary
12 Portfolio holdings
21 Financial statements
* Morningstar ratings reflect risk-adjusted performance through 1/31/99
and are subject to change every month. Morningstar ratings are calculated
from a fund's 3-, 5-, and 10-year returns (with fee adjustments) in excess
of 90-day Treasury bill returns and a risk factor that reflects
performance below 90-day Treasury bill returns. For 3-, 5-, and 10-year
performance, the fund received 3, 3, and 4 stars, respectively. There were
2,859, 1,734, and 741 equity funds rated. 10% of the funds in an
investment category receive 5 stars; the next 22.5% receive 4 stars.
Performance of other share classes will vary. Past performance is not
indicative of future results.
From the Chairman
[GRAPHIC OMITTED: PHOTO OF GEORGE PUTNAM]
[copyright] Karsh, Ottawa
Dear Shareholder:
Putnam Voyager Fund continued to produce above-average results for
investors seeking a more aggressive pattern of capital appreciation,
handily outperforming its benchmark Russell Midcap Growth Index at net
asset value for the first half of fiscal 1999. You will find more details
in the following report from management and the performance tables.
In this summer's volatile equity market, stock selection became a key
differentiator as well as the major impetus for the fund's continued
strong performance. As you might expect, much of this strength came from
companies in the technology and communications areas. Consumer optimism
also fueled growth in the fund's retailing stocks.
As your fund's managers view prospects for the fiscal year's second half,
they see further market volatility as investors digest the tremendous
technological and social changes that are now occurring on a global scale.
But overall, they remain optimistic about your fund's prospects both over
the near term and for the long haul.
Respectfully yours,
/S/GEORGE PUTNAM
George Putnam
Chairman of the Trustees
March 17, 1999
Report from the Fund Managers
Roland W. Gillis
Charles H. Swanberg
Robert R. Beck
Michael P. Stack
Michael E. Nance
In the past six months, investors witnessed a continuation of the
volatility that has plagued financial markets since the dawn of the Asian
economic crisis. Sparked by a near financial and political meltdown in
Russia, major market indexes fell to sobering lows before recovering their
losses in the fourth quarter of 1998.
Putnam Voyager Fund emerged from the turmoil relatively unscathed, having
benefited from strong stock selection in some of the most rapidly growing
segments of the economy. The fund's class A shares provided a 16.19% total
return at net asset value (9.53% at public offering price) for the six
months ended January 31, 1999, compared with 13.38% for the Russell Midcap
Growth Index, the fund's benchmark. For the 12 months ended January 31,
1999, the fund's class A shares provided a robust 30.55% total return at
net asset value and 23.05% at public offering price. For more detailed
performance information, including returns for other share classes, please
see pages 9 and 10.
* THE BATTLE FOR BANDWIDTH
The U.S. economy is undergoing a tremendous change, sparked by the
integration of technologies such as the Internet and cellular telephones.
Consumers and businesses are changing the way they receive information,
communicate with one another, and find their sources of entertainment.
Entire industries are now consolidating or altering their principal lines
of business in order to profit from the vast potential offered by online
and other high-tech services.
The fund's strategy has been to focus on companies of all sizes that we
believe are benefiting from the convergence of these technologies. For
example, the growth of the Internet has created an explosion in the volume
of data moving through communications networks (data traffic is now
greater than voice traffic), forcing telecommunications companies to
increase the capacity of their networks and seek more advanced switching
technology. Consequently, the fund's telecommunications and related
equipment holdings experienced dramatic growth during the period. Qwest
Communications International increased in value by 48% for the six months
ended January 31, 1999, while Ascend Communications was up 96%, and
Metromedia Fiber gained an astounding 227%.
Cable companies also produced attractive returns for the fund during the
period. Fierce competition in the transmission of voice, data, and video
into household and businesses is the driving force in this sector.
Deregulation in the industry has accelerated merger activity in recent
months, including a deal between AT&T and portfolio holding
Telecommunications Inc. (TCI), as companies position themselves for new
business opportunities. TCI gained 64% for the period, while portfolio
holding MediaOne Group advanced 16%. Although these securities and others
discussed in this report were viewed favorably during the period, all
holdings are subject to review in accordance with the fund's investment
strategy and may vary in the future.
[GRAPHIC OMITTED: horizontal bar chart TOP INDUSTRY SECTORS]
TOP INDUSTRY SECTORS*
Retail 13.1%
Computer software 8.9%
Cable television 7.3%
Pharmaceuticals
and biotechnology 6.5%
Broadcasting 6.0%
Footnote reads:
*Based on net assets as of 1/31/99. Holdings will vary over time.
* MEDIA AND ADVERTISING COMPANIES BOOSTED BY INTERNET GROWTH
One important byproduct of the current technological revolution is the
effect it is having on media and advertising companies. There is a vast
array of new products and services, ranging from personal communications
services (PCS) to Internet access, offered by a multitude of companies
that must compete for the public's attention through advertising.
Advertisers of all stripes -- radio, billboard, and TV -- are benefiting
from the tremendous demand for their services as each high-tech company
tries to get the message out about its new technology or capabilities.
Portfolio holdings in the advertising area that contributed to the fund's
positive return during the period include Clear Channel Communications,
which gained 10% during the semiannual period.
With more than 15 million users, America Online has direct access to
nearly half of America's Internet-savvy population. The business
opportunities for online advertising are tremendous, and investors have
taken notice. In the past six months, AOL surged a breathtaking 200% and
is now the fund's sixth largest holding. The company was also added to
Standard & Poor's 500(R) Index during the period as the flagship of the
Internet economy.
* RETAILERS FIND NEW NICHE
Over the past couple of years, U.S. retailers have had to operate in an
exceedingly competitive environment. Although inflation has been subdued
in many sectors of the economy, apparel prices actually fell 1.1% in
January after a 1.4% slide in 1998,* leaving retailers with little or no
pricing power. Some specialty discount retailers have found ways to
increase profits while offering reduced prices to consumers. Portfolio
holding Costco, up 46% during the period, sells brand-name products
through its warehouse-style outlets with an across-the-board 12% markup.
Kohl's Corp, up 38%, discounts brand-name apparel. These companies are
recognizing that many Americans demand value above service, and they are
being rewarded in a difficult environment with profits and rising share
values.
*Source: Department of Labor.
[GRAPHIC OMITTED: TOP 10 HOLDINGS]
TOP 10 HOLDINGS
Tele-Communications TCI Ventures Group
Cable television
Costco Companies, Inc.
Retail
Microsoft Corporation
Computer software
CBS Corporation
Broadcasting
Tyco International Ltd.
Medical supplies and devices
America Online, Inc.
Computer services
Merck & Co., Inc.
Pharmaceuticals and biotechnology
Tele-Communications, Inc.
Cable television
Kohl's Corporation
Retail
Clear Channel Communications, Inc.
Broadcasting
Footnote reads:
These holdings represent 19.2% of the fund's assets as of 1/31/99.
Portfolio holdings will vary over time.
* STAGE SET FOR CONTINUED GROWTH
At the moment, the economic backdrop for financial markets is extremely
favorable. U.S. gross domestic product grew at an annualized rate of 6.1%
in the last quarter of 1998, yet inflation slowed to less than 1%.
Although layoffs have surged in some sectors of the economy, job growth in
service-related sectors has more than offset declines, bringing the
nation's unemployment rate to a 28-year low of 4.3% in December.
Productivity, which improved at a 4.6% annual rate in the last three
months of 1998, is a byproduct of some of the trends taking place in the
U.S. economy as growth is transferred in some cases from traditional
industries to newer and more productive sectors of the economy.
Despite the gains in productivity, real earnings growth is becoming
increasingly difficult to find. Market volatility will likely continue as
investors reward companies that deliver growth and punish those that
disappoint. The fund's companies have higher-than-average growth rates and
therefore elevated expectations. While short-term volatility may be in
store, over the longer term we think growth stock valuations will continue
to rise. In the coming months, we will continue to look for companies that
we believe are successfully participating in the profound changes taking
place in the U.S. economy. The fund's focus on rapidly growing companies
of all sizes should continue to benefit investors in 1999.
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 1/31/99, 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
Voyager Fund is designed for investors seeking capital appreciation
primarily through common stocks.
TOTAL RETURN FOR PERIODS ENDED 1/31/99
Class A Class B Class M
(inception date) (4/1/69) (4/27/92) (12/1/94)
NAV POP NAV CDSC NAV POP
- ------------------------------------------------------------------------------
6 months 16.19% 9.53% 15.73% 10.73% 15.95% 11.89%
- ------------------------------------------------------------------------------
1 year 30.55 23.05 29.56 24.56 29.91 25.35
- ------------------------------------------------------------------------------
5 years 154.05 139.45 144.77 142.77 147.91 139.19
Annual average 20.50 19.08 19.61 19.41 19.91 19.06
- ------------------------------------------------------------------------------
10 years 527.04 490.99 478.90 478.90 495.02 474.19
Annual average 20.15 19.44 19.20 19.20 19.52 19.10
- ------------------------------------------------------------------------------
Annual average
(life of fund) 14.57 14.34 13.50 13.50 13.80 13.66
- ------------------------------------------------------------------------------
COMPARATIVE INDEX RETURNS FOR PERIODS ENDED 1/31/99
Russell MidCap Consumer
Growth Index Price Index
- ------------------------------------------------------------------------------
6 months 13.38% 0.86%
- ------------------------------------------------------------------------------
1 year 23.62 1.86
- ------------------------------------------------------------------------------
5 years 123.33 12.59
Annual average 17.44 2.40
- ------------------------------------------------------------------------------
10 years 379.58 35.92
Annual average 16.98 3.12
- ------------------------------------------------------------------------------
Annual average
(life of fund) N/A 5.22
- ------------------------------------------------------------------------------
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. 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.
PRICE AND DISTRIBUTION INFORMATION
6 months ended 1/31/99
Class A Class B Class M
- ------------------------------------------------------------------------------
Distributions (number) 1 1 1
- ------------------------------------------------------------------------------
Income -- -- --
- ------------------------------------------------------------------------------
Capital gains
- ------------------------------------------------------------------------------
Long-term 1.5620 1.5620 1.5620
- ------------------------------------------------------------------------------
Short-term 0.0232 0.0232 0.0232
- ------------------------------------------------------------------------------
Total $1.5852 $1.5852 $1.5852
- ------------------------------------------------------------------------------
Share value: NAV POP NAV NAV POP
- ------------------------------------------------------------------------------
7/31/98 $21.36 $22.66 $20.14 $20.93 $21.69
- ------------------------------------------------------------------------------
1/31/99 23.02 24.42 21.51 22.47 23.28
- ------------------------------------------------------------------------------
TOTAL RETURN FOR PERIODS ENDED 12/31/98
(most recent calendar quarter)
Class A Class B Class M
(inception date) (4/1/69) (4/27/92) (12/1/94)
NAV POP NAV CDSC NAV POP
- ------------------------------------------------------------------------------
6 months 6.21% 0.10% 5.77% 0.89% 5.92% 2.22%
- ------------------------------------------------------------------------------
1 year 24.05 16.93 23.07 18.07 23.40 19.07
- ------------------------------------------------------------------------------
5 years 148.17 133.92 138.89 136.89 141.98 133.45
Annual average 19.94 18.53 19.03 18.83 19.33 18.48
- ------------------------------------------------------------------------------
10 years 534.88 498.38 485.85 485.85 502.25 481.17
Annual average 20.30 19.59 19.34 19.34 19.67 19.24
- ------------------------------------------------------------------------------
Annual average
(life of fund) 14.42 14.20 13.35 13.35 13.65 13.52
- ------------------------------------------------------------------------------
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 method of performance calculation.
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 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 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
Russell MidCap Growth Index* measures the performance of those Russell
Midcap companies with higher price-to-book ratios and higher forecasted
growth values. The stocks are also members of the Russell 1000 Growth
Index.
Consumer Price Index (CPI) is a commonly used measure of inflation; it
does not represent an investment return.
*Securities indexes assume reinvestment of all distributions and interest
payments and do not take in account brokerage fees or taxes. Securities in
the fund do not match those in the indexes and performance of the fund
will differ. It is not possible to invest directly in an index.
<TABLE>
<CAPTION>
Portfolio of investments owned
January 31, 1999 (Unaudited)
COMMON STOCKS (97.7%) (a)
NUMBER OF SHARES VALUE
<S> <C> <C>
Advertising (1.5%)
- --------------------------------------------------------------------------------------------------------------------------
1,478,731 Lamar Advertising Co. (NON) $ 58,040,192
2,165,464 Omnicom Group, Inc. 138,589,696
7,206,319 Outdoor Systems, Inc. (NON) 207,181,671
130,100 TMP Worldwide Inc. (NON) 7,806,000
---------------
411,617,559
Apparel (0.5%)
- --------------------------------------------------------------------------------------------------------------------------
1,273,586 Gucci Group N.V. (Netherlands) 87,638,637
1,070,750 Nike, Inc. 48,986,813
---------------
136,625,450
Automotive (0.3%)
- --------------------------------------------------------------------------------------------------------------------------
2,919,864 Republic Industries, Inc. (NON) 44,162,943
734,500 Snap-On Inc. 24,973,000
---------------
69,135,943
Banks (2.4%)
- --------------------------------------------------------------------------------------------------------------------------
2,379,200 Banc One Corp. 124,610,600
3,514,200 Fifth Third Bancorp 240,503,063
2,015,272 Firstar Corp. 177,721,800
328,900 Northern Trust Corp. 28,470,406
841,300 SunTrust Banks, Inc. 59,259,069
---------------
630,564,938
Broadcasting (6.0%)
- --------------------------------------------------------------------------------------------------------------------------
13,825,080 CBS Corp. 470,052,720
4,746,746 Chancellor Media Corp. (NON) 272,937,895
6,917,890 Clear Channel Communications, Inc. (NON) 428,044,444
412,600 Entercom Communications Corp. (NON) 12,790,600
1,036,181 Heftel Broadcasting Corp. Class A (NON) 47,275,758
6,621,200 Infinity Broadcasting Corp. Class A (NON) 183,324,475
3,110,930 Sinclair Broadcast Group, Inc. Class A (NON) 58,718,804
1,454,600 Univision Communications Inc. Class A (NON) 65,275,175
2,015,000 WestWood One, Inc. (NON) (AFF) 56,671,875
---------------
1,595,091,746
Business Services (5.3%)
- --------------------------------------------------------------------------------------------------------------------------
616,545 Affiliated Computer Services, Inc. Class A (NON) 29,748,296
308,869 AnswerThink Consulting Group, Inc. (NON) 15,597,885
14,839,295 Cendant Corp. (NON) 322,754,666
2,545,390 Cintas Corp. 193,608,727
1,099,600 Interim Services Inc. (NON) 23,366,500
2,141,229 Interpublic Group of Cos., Inc. 169,424,745
744,075 Metamor Worldwide, Inc. (NON) 19,997,016
1,303,932 NOVA Corp./Georgia (NON) 41,644,328
1,758,952 Paychex, Inc. 85,638,976
135,800 Pitney Bowes, Inc. 9,344,738
40,338,974 Rentokil Group PLC (United Kingdom) 296,950,315
1,328,500 Robert Half International, Inc. (NON) 50,233,906
335,700 Select Appointments Holdings PLC ADR (United Kingdom) 7,469,325
2,930,073 Serco Group PLC (United Kingdom) (NON) 59,526,631
1,931,100 Snyder Communications, Inc. (NON) 77,244,000
---------------
1,402,550,054
Cable Television (7.3%)
- --------------------------------------------------------------------------------------------------------------------------
305,500 Adelphia Communications Corp. (NON) 18,406,375
1,926,200 Comcast Corp. Class A 130,951,503
5,464,000 MediaOne Group Inc. (NON) 306,325,500
4,035,300 Tele-Comm Liberty Media Group, Inc. Class A (NON) 215,888,550
6,335,769 Tele-Communications, Inc. Class A (NON) 434,396,162
26,662,610 Tele-Communications TCI Ventures Group Class A (NON) (AFF) 726,556,123
3,089,100 USA Networks, Inc. (NON) 111,207,600
---------------
1,943,731,813
Cellular Communication (0.3%)
- --------------------------------------------------------------------------------------------------------------------------
2,308,400 Sprint PCS (NON) 73,580,250
Computer Services (4.0%)
- --------------------------------------------------------------------------------------------------------------------------
2,545,000 America Online, Inc. (NON) 447,124,688
473,200 Applied Graphics Technologies, Inc. (NON) 6,802,250
2,686,764 Capita Group PLC (United Kingdom) 25,015,654
74,900 Covad Communications Group 144A 3,950,975
2,234,400 Electronic Data Systems Corp. 117,166,350
1,918,557 EMC Corp. (NON) 208,882,893
1,285,700 Galileo International, Inc. (NON) 62,999,300
400,040 IDT Corp. (NON) 6,200,620
2,453,908 Keane, Inc. (NON) 79,138,533
2,067,620 Misys PLC (United Kingdom) (NON) 21,742,394
32,100 Network Solutions, Inc. (NON) 7,736,100
835,229 Sterling Commerce, Inc. (NON) 35,862,645
523,200 SunGard Data Systems Inc. (NON) 18,769,800
57,700 VeriSign, Inc. 5,495,925
622,700 Whittman-Hart, Inc. (NON) 20,860,450
---------------
1,067,748,577
Computer Software (8.9%)
- --------------------------------------------------------------------------------------------------------------------------
1,815,276 BMC Software, Inc. (NON) 84,705,698
5,027,954 Cadence Design Systems, Inc. (NON) 160,894,528
831,793 Cerner Corp. (NON) 20,274,954
373,000 Citrix Systems, Inc. (NON) 33,803,125
6,316,011 Computer Associates Intl., Inc. 319,748,057
2,299,916 Compuware Corp. (NON) 152,369,435
3,128,890 Electronic Arts, Inc. (NON) (AFF) 131,902,269
1,340,400 Gateway 2000, Inc. (NON) 103,545,900
251,800 I2 Technologies, Inc. (NON) 8,781,525
560,000 Infoseek Corp. (NON) 43,820,000
1,536,529 Intuit, Inc. (NON) 139,824,139
869,000 Legato Systems, Inc. (NON) 52,465,875
1,376,500 Lernout & Hauspie Speech Products N.V. (Belgium) (NON) 48,865,750
300,000 Lycos, Inc. (NON) 41,100,000
3,461,638 Microsoft Corp. (NON) 605,786,650
1,298,650 Oracle Corp. (NON) 71,912,744
14,017,814 Parametric Technology Corp. (NON) (AFF) 183,107,695
424,000 Policy Management Systems Corp. (NON) 22,763,500
156,000 Rational Software Corp. (NON) 5,157,750
1,527,454 Synopsys, Inc. (NON) 88,687,798
1,295,000 The Learning Company, Inc. (NON) 31,403,750
216,100 VERITAS Software Corp. (NON) 18,071,363
---------------
2,368,992,505
Computers (2.0%)
- --------------------------------------------------------------------------------------------------------------------------
4,504,800 Compaq Computer Corp. 214,541,100
1,289,600 IBM Corp. 236,319,200
2,136,000 Seagate Technology, Inc. (NON) 86,908,500
---------------
537,768,800
Conglomerates (0.2%)
- --------------------------------------------------------------------------------------------------------------------------
500,500 Allied-Signal, Inc. 19,519,500
925,200 Corning Inc. 45,103,500
---------------
64,623,000
Consumer Products (0.2%)
- --------------------------------------------------------------------------------------------------------------------------
968,600 Newell Co. 40,257,438
Consumer Services (0.7%)
- --------------------------------------------------------------------------------------------------------------------------
2,158,404 Hillenbrand Industries, Inc. 101,444,988
5,170,925 The ServiceMaster Co. 98,570,758
---------------
200,015,746
Cosmetics (--%)
- --------------------------------------------------------------------------------------------------------------------------
235,003 ThermoLase Corp. (NON) 998,763
Education Services (0.1%)
- --------------------------------------------------------------------------------------------------------------------------
754,793 Apollo Group, Inc. Class A (NON) 20,662,458
325,200 ITT Educational Services, Inc. (NON) 12,499,875
---------------
33,162,333
Electric Utilities (0.4%)
- --------------------------------------------------------------------------------------------------------------------------
1,275,500 CalEnergy, Inc. (NON) 40,656,563
1,243,500 Duke Energy Corp. 76,863,844
---------------
117,520,407
Electronics and Electrical Equipment (3.7%)
- --------------------------------------------------------------------------------------------------------------------------
2,023,900 American Power Conversion Corp. (NON) 103,471,888
2,698,050 Applied Materials, Inc. (NON) 170,483,034
697,400 ASM Lithography Holding N.V. (Netherlands) (NON) 32,429,100
900,000 Celestica Inc. (Canada) (NON) 30,150,000
1,780,300 General Electric Co. 186,708,963
1,889,400 Motorola, Inc. 136,509,150
629,000 PMC -- Sierra, Inc. (NON) 46,742,563
1,141,754 Sanmina Corp. (NON) 75,355,764
826,800 Sipex Corp. (NON) 22,116,900
814,336 Solectron Corp. (NON) 72,526,800
288,960 Teradyne, Inc. (NON) 19,035,240
2,038,800 Thermo Instrument Systems, Inc. (NON) 33,895,050
307,905 Uniphase Corp. (NON) 28,057,843
434,264 Waters Corp. (NON) 39,518,024
---------------
997,000,319
Energy-Related (0.3%)
- --------------------------------------------------------------------------------------------------------------------------
4,188,546 Thermo Electron Corp. (NON) 69,634,577
Entertainment (0.9%)
- --------------------------------------------------------------------------------------------------------------------------
413,000 SFX Entertainment, Inc. Class A (NON) 25,502,750
1,523,000 Time Warner, Inc. 95,187,500
1,320,200 Viacom, Inc. Class B (NON) 112,217,000
---------------
232,907,250
Environmental Control (1.4%)
- --------------------------------------------------------------------------------------------------------------------------
2,329,979 Allied Waste Industries, Inc. (NON) 47,473,322
2,272,874 Republic Services, Inc. (NON) 46,878,026
1,804,500 U.S. Filter Corp. (NON) 41,841,844
4,782,800 Waste Management, Inc.(NON) 238,841,075
---------------
375,034,267
Financial Services (3.8%)
- --------------------------------------------------------------------------------------------------------------------------
1,271,210 American Express Co. 130,775,729
944,120 Charter One Financial, Inc. 26,435,360
2,034,100 Citigroup, Inc. 114,036,731
2,348,577 Concord EFS, Inc. (NON) 95,410,941
153,000 Donaldson, Lufkin & Jenrette, Inc. 7,630,876
1,794,310 Fannie Mae 130,760,341
1,892,777 Federal Home Loan Mortgage Corp. 117,352,174
4,698,300 MBNA Corp. 131,258,756
1,015,700 Morgan Stanley, Dean Witter, Discover and Co. 88,175,456
958,050 Providian Financial Corp. 96,583,416
2,263,992 TCF Financial Corp. 50,515,322
1,052,900 Wells Fargo Co. 36,785,694
---------------
1,025,720,796
Food and Beverages (0.3%)
- --------------------------------------------------------------------------------------------------------------------------
4,419,200 Whitman Corp. 86,174,400
Funeral/Cemetery Services (0.1%)
- --------------------------------------------------------------------------------------------------------------------------
1,968,198 Stewart Enterprises, Inc. Class A 34,443,465
Health Care Services (1.4%)
- --------------------------------------------------------------------------------------------------------------------------
438,200 CareMatrix Corp. (NON) 10,927,613
6,113,542 Health Management Assoc., Inc. (NON) 76,801,371
1,294,622 IMS Health Inc. 47,415,531
1,353,200 Lincare Holdings, Inc. (NON) 47,362,000
1,586,971 Mckesson HBOC, Inc. 119,221,191
105,200 NCS HealthCare, Inc. Class A (NON) 2,301,250
395,000 Sunrise Assisted Living, Inc. (NON) 16,590,000
2,315,496 Total Renal Care Holdings, Inc. (NON) 53,980,001
---------------
374,598,957
Insurance (1.6%)
- --------------------------------------------------------------------------------------------------------------------------
3,611,850 AFLAC Inc. 154,858,069
2,301,100 American General Corp. 164,097,194
843,750 American International Group, Inc. 86,853,516
859,100 Century Business Services, Inc. (NON) 12,027,400
230,300 CIGNA Corp. 18,970,963
---------------
436,807,142
Lodging (0.4%)
- --------------------------------------------------------------------------------------------------------------------------
3,064,883 Extended Stay America, Inc. (NON) 28,541,723
1,779,400 Prime Hospitality Corp. (NON) 18,572,488
1,684,343 Promus Hotel Corp. (NON) 50,319,747
---------------
97,433,958
Machinery (0.1%)
- --------------------------------------------------------------------------------------------------------------------------
343,156 Sidel S.A. (France) 28,362,516
Medical Supplies and Devices (4.5%)
- --------------------------------------------------------------------------------------------------------------------------
1,313,300 Baxter International, Inc. 93,162,219
1,738,200 Bergen Brunswig Corp. Class A 48,669,600
892,258 Centocor, Inc. (NON) 37,530,602
469,235 Henry Schein, Inc. (NON) 19,737,197
614,000 LifeCore Biomedical, Inc. (NON) 6,447,000
3,804,440 Medtronic, Inc. 303,166,313
264,700 Minimed, Inc. (NON) 28,753,038
1,775,956 Omnicare, Inc. 54,388,653
1,686,557 Stryker Corp. 78,214,081
2,380,632 Sybron International Corp. (NON) 64,277,064
2,477,293 Thermo Cardiosystems, Inc. (NON) (AFF) 21,676,314
435,050 Thermotrex Corp. (NON) 3,181,303
5,816,942 Tyco International Ltd. 448,268,093
---------------
1,207,471,477
Networking (2.7%)
- --------------------------------------------------------------------------------------------------------------------------
4,665,400 Ascend Communications, Inc. (NON) 407,347,738
794,100 Cisco Systems, Inc. (NON) 88,591,781
3,750,300 3Com Corp. (NON) 176,264,100
478,100 Entrust Technologies Inc. (NON) 16,853,025
438,400 Network Appliance, Inc. (NON) 23,235,200
---------------
712,291,844
Office Equipment (0.2%)
- --------------------------------------------------------------------------------------------------------------------------
1,251,050 Avery Dennison Corp. 61,848,784
Oil and Gas (1.3%)
- --------------------------------------------------------------------------------------------------------------------------
326,400 Chevron, Inc. 24,398,400
2,974,600 Conoco, Inc. (NON) 59,306,088
1,422,800 Halliburton Co. 42,239,375
1,453,850 Nabors Industries, Inc. (NON) 18,173,125
2,318,000 National-Oilwell, Inc. (NON) (AFF) 22,600,500
1,575,929 Schlumberger Ltd. 75,053,619
784,600 Total Corp. ADR (France) 40,161,713
1,771,750 Varco International, Inc. (NON) 12,955,922
1,294,400 Williams Cos., Inc. 42,715,200
---------------
337,603,942
Packaging and Containers (0.2%)
- --------------------------------------------------------------------------------------------------------------------------
911,700 Sealed Air Corp. (NON) 48,377,081
Paper and Forest Products (0.1%)
- --------------------------------------------------------------------------------------------------------------------------
403,300 Willamette Industries, Inc. 14,115,500
Pharmaceuticals and Biotechnology (6.5%)
- --------------------------------------------------------------------------------------------------------------------------
3,045,900 American Home Products Corp. 178,756,256
140,400 Bristol-Myers Squibb Co. 17,997,525
1,966,853 Elan Corp. PLC ADR (Ireland) (NON) 132,762,578
1,702,400 Genentech, Inc. (NON) 138,532,800
2,965,561 Merck & Co., Inc. 435,196,077
1,542,400 Pfizer, Inc. 198,391,200
4,103,293 Pharmacia & Upjohn, Inc. 235,939,348
2,732,200 Schering-Plough Corp. 148,904,900
924,285 Sepracor, Inc. (NON) 106,061,704
280,000 Transkaryotic Therapies, Inc. (Malaysia) (NON) 8,400,000
1,250,921 Vertex Pharmaceuticals, Inc. (NON) 39,404,012
1,432,100 Warner-Lambert Co. 103,379,719
---------------
1,743,726,119
Publishing (1.5%)
- --------------------------------------------------------------------------------------------------------------------------
1,145,600 Harcourt General, Inc. 54,988,800
797,700 McGraw-Hill, Inc. 86,251,313
1,252,423 Wolters Kluwer N.V. (Netherlands) 247,596,732
---------------
388,836,845
Recreation (--%)
- --------------------------------------------------------------------------------------------------------------------------
240,300 International Speedway Corp. Class A (NON) 10,212,750
Restaurants (0.6%)
- --------------------------------------------------------------------------------------------------------------------------
9,433,737 J.D. Wetherspoon PLC (United Kingdom) (NON) 30,726,625
962,100 McDonald's Corp. 75,825,506
1,050,400 PizzaExpress PLC (United Kingdom) 13,304,892
955,500 Tricon Global Restaurants, Inc. (NON) 45,445,969
---------------
165,302,992
Retail (13.1%)
- --------------------------------------------------------------------------------------------------------------------------
1,846,600 Albertsons, Inc. 112,642,600
2,594,050 Bed Bath & Beyond, Inc. (NON) 83,009,600
44,100 CompUSA, Inc. (NON) 556,763
2,063,204 Consolidated Stores Corp. (NON) 34,429,717
8,525,420 Costco Companies, Inc. (NON) 706,544,183
2,921,040 CVS Corp. 159,926,940
4,245,782 Dollar Tree Stores, Inc. (NON) (AFF) 183,364,710
5,214,300 Home Depot, Inc. (The) 314,813,363
6,338,778 Kohls Corp. (NON) 429,452,210
1,734,900 Kroger Co. (NON) 110,166,150
2,989,600 Lowe's Cos., Inc. 174,331,050
1,343,037 Michaels Stores, Inc. (NON) 25,181,944
805,000 Micro Warehouse, Inc. (NON) 31,395,000
7,306,165 Office Depot, Inc. (NON) (AFF) 253,889,234
4,744,400 Officemax, Inc. (NON)(AFF) 45,368,325
4,612,600 Rite Aid Corp. 226,593,975
858,700 Safeway, Inc. (NON) 48,194,538
495,300 Saks, Inc. (NON) 18,233,231
2,164,853 Starbucks Corp. (NON) 112,707,659
6,307,300 TJX Cos., Inc. (The) 186,459,556
1,286,300 Wal-Mart Stores, Inc. 110,621,800
1,129,900 Walgreen Co. 70,618,750
1,503,340 Williams-Sonoma, Inc. (NON) 52,147,106
---------------
3,490,648,404
Satellite Services (0.3%)
- --------------------------------------------------------------------------------------------------------------------------
1,679,060 PanAmSat Corp. (NON) 67,477,224
Semiconductors (4.4%)
- --------------------------------------------------------------------------------------------------------------------------
800,000 Analog Devices, Inc. (NON) 23,800,000
1,541,600 Intel Corp. 217,269,250
1,018,230 KLA Tencor Corp. (NON) 58,802,783
3,874,250 Linear Technology Corp.(AFF) 394,204,938
5,795,204 Maxim Integrated Products Inc. (NON) 298,090,806
787,900 Novellus Systems, Inc. (NON) 57,615,188
1,041,900 Texas Instruments, Inc. 103,017,863
400,000 Xilinx, Inc. (NON) 33,200,000
---------------
1,186,000,828
Specialty Consumer Products (0.2%)
- --------------------------------------------------------------------------------------------------------------------------
4,813,690 Luxottica Group S.P.A. ADR (Italy)(AFF) 51,145,456
Steel (--%)
- --------------------------------------------------------------------------------------------------------------------------
474,600 Lone Star Technologies, Inc. (NON) 6,140,138
Telecommunication Equipment (1.3%)
- --------------------------------------------------------------------------------------------------------------------------
473,300 Comverse Technology, Inc. (NON) 39,757,200
1,076,800 Oy Nokia AB Class A, (Finland) 157,256,141
1,223,100 Lucent Technologies, Inc. 137,675,194
---------------
334,688,535
Telecommunications (1.9%)
- --------------------------------------------------------------------------------------------------------------------------
487,577 E. Spire Communications, Inc. (NON) 2,529,306
679,600 Global Crossing Ltd. (NON) 35,933,850
1,853,583 Global TeleSystems Group, Inc. (NON) 116,080,635
3,531,700 MCI WorldCom, Inc. (NON) 281,653,075
999,400 NTL Inc. (NON) 83,075,125
---------------
519,271,991
Telephone Services (3.5%)
- --------------------------------------------------------------------------------------------------------------------------
1,434,890 Intermedia Communications, Inc. (NON) 19,909,099
1,824,600 McLeod, Inc. Class A (NON) 75,834,938
2,936,000 Metromedia Fiber Network, Inc. Class A (NON) 134,505,500
1,200,595 NEXTLINK Communications, Inc. Class A (NON) 53,051,292
4,229,121 Qwest Communications International, Inc. (NON) 253,482,940
1,089,000 RSL Communications, Ltd. Class A (NON) 27,905,625
992,300 SBC Communications, Inc. 53,584,200
3,813,000 Sprint Corp. 319,815,375
---------------
938,088,969
Tobacco (0.4%)
- --------------------------------------------------------------------------------------------------------------------------
2,191,500 Philip Morris Cos., Inc. 103,000,500
Transportation (0.2%)
- --------------------------------------------------------------------------------------------------------------------------
703,350 FDX Corp. (NON) 57,454,903
Wireless Communications (0.7%)
- --------------------------------------------------------------------------------------------------------------------------
1,326,500 AirTouch Communications, Inc. (NON) 128,090,156
1,382,100 American Tower Corp. Class A 35,589,075
259,400 RF Micro Devices, Inc. (NON) 18,774,075
---------------
182,453,306
---------------
Total Common Stocks (cost $16,636,411,833) $26,078,260,557
UNITS (--%) (cost $5,602,985) (a)
NUMBER OF UNITS VALUE
- --------------------------------------------------------------------------------------------------------------------------
173,620 ThermoLase Corp. (NON) $ 2,799,623
SHORT-TERM INVESTMENTS (2.3%) (a)
PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------------------------------------------------------------
$50,000,000 Asset Securitization Corp. for an effective yield of
5.04%, April 16, 1999 $ 49,477,138
50,000,000 Associates Corp. Of North America for
an effective yield of 4.83%, February 8, 1999 49,948,472
50,000,000 Bank Of New York Co. Inc. for an effective yield
of 4.87%, February 17, 1999 49,887,151
15,000,000 Chevron Transport Inc. for an effective yield of
5.05%, March 22, 1999 14,896,929
36,000,000 Commonwealth Bank Of Australia for an
effective yield of 4.90%, February 10, 1999 35,954,467
45,000,000 Corporate Receivables Co. for an effective yield of
4.86%, March 3, 1999 44,813,812
31,000,000 Credit Suisse First Boston for an effective yield of
4.80%, May 11, 1999 30,588,804
50,000,000 General Electric Capital Corp. for an effective
yield of 5.05%, February 19, 1999 49,868,874
50,000,000 National Australia Funding for an effective yield of
5.17%, February 2, 1999 49,990,443
34,000,000 Sheffield Receivable Corp. for an effective yield of
5.25%, February 26, 1999 33,868,262
40,000,000 Svenska Handelsbanken Inc. for an effective yield of
4.80%, April 28, 1999 39,538,137
50,000,000 Windmill Funding for an effective yield of 4.86%,
March 24, 1999 49,651,137
112,909,000 Interest in $580,000,000 joint repurchase agreement
dated January 29, 1999 with J P Morgan due
February 1, 1999 with respect to various
U.S. Treasury obligations -- maturity value
of $112,953,223 for an effective yield of 4.70% 112,909,000
---------------
Total Short-Term Investments (cost $611,392,626) $ 611,392,626
- --------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $17,253,407,444) (b) $26,692,452,806
- --------------------------------------------------------------------------------------------------------------------------
(a) Percentages indicated are based on net assets of $26,700,333,258.
(b) The aggregate identified cost on a tax basis is $17,296,795,027, resulting in gross unrealized appreciation and
depreciation of $10,228,579,767 and $832,921,988, respectively, or net unrealized appreciation of $9,395,657,779.
(NON) Non-income-producing security.
(AFF) Affiliated Companies (Note 5).
ADR after the name of a foreign holding stands for American Depository 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
January 31, 1999 (Unaudited)
<S> <C>
Assets
- -----------------------------------------------------------------------------------------------
Investments in securities, at value
(identified cost $17,253,407,444) (Note 1) $26,692,452,806
- -----------------------------------------------------------------------------------------------
Cash 39,459
- -----------------------------------------------------------------------------------------------
Dividends and interest and other receivables 2,443,960
- -----------------------------------------------------------------------------------------------
Receivable for shares of the fund sold 49,226,179
- -----------------------------------------------------------------------------------------------
Receivable for securities sold 336,938,285
- -----------------------------------------------------------------------------------------------
Total assets 27,081,100,689
Liabilities
- -----------------------------------------------------------------------------------------------
Payable for securities purchased 305,419,740
- -----------------------------------------------------------------------------------------------
Payable for shares of the fund repurchased 32,206,210
- -----------------------------------------------------------------------------------------------
Payable for compensation of Manager (Note 2) 28,529,309
- -----------------------------------------------------------------------------------------------
Payable for investor servicing and custodian fees (Note 2) 2,974,958
- -----------------------------------------------------------------------------------------------
Payable for compensation of Trustees (Note 2) 203,026
- -----------------------------------------------------------------------------------------------
Payable for administrative services (Note 2) 5,044
- -----------------------------------------------------------------------------------------------
Payable for distribution fees (Note 2) 10,274,004
- -----------------------------------------------------------------------------------------------
Payable to subcustodian 3,097
- -----------------------------------------------------------------------------------------------
Other accrued expenses 1,152,043
- -----------------------------------------------------------------------------------------------
Total liabilities 380,767,431
- -----------------------------------------------------------------------------------------------
Net assets $26,700,333,258
Represented by
- -----------------------------------------------------------------------------------------------
Paid-in capital (Notes 1 and 4) $16,676,809,024
- -----------------------------------------------------------------------------------------------
Accumulated net investment loss (Note 1) (54,787,824)
- -----------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and
foreign currency transactions (Note 1) 639,266,083
- -----------------------------------------------------------------------------------------------
Net unrealized appreciation of investments and
assets and liabilities in foreign currencies 9,439,045,975
- -----------------------------------------------------------------------------------------------
Total -- Representing net assets applicable to
capital shares outstanding $26,700,333,258
Computation of net asset value and offering price
- -----------------------------------------------------------------------------------------------
Net asset value and redemption price per class A share
($16,310,719,316 divided by 708,438,373 shares) $23.02
- -----------------------------------------------------------------------------------------------
Offering price per class A share (100/94.25 of $23.02)* $24.42
- -----------------------------------------------------------------------------------------------
Net asset value and offering price per class B share
($8,259,422,605 divided by 383,982,972 shares)** $21.51
- -----------------------------------------------------------------------------------------------
Net asset value and redemption price per class M share
($356,866,205 divided by 15,883,818 shares) $22.47
- -----------------------------------------------------------------------------------------------
Offering price per class M share (100/96.50 of $22.47)* $23.28
- -----------------------------------------------------------------------------------------------
Net asset value, offering price and redemption price per class Y share
($1,773,325,132 divided by 75,769,632 shares) $23.40
- -----------------------------------------------------------------------------------------------
* 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
sales charge.
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of operations
Six months ended January 31, 1999 (Unaudited)
<S> <C>
Investment income:
- -----------------------------------------------------------------------------------------------
Dividends (net of foreign tax of $168,204) (including dividend
income of $539,833 from investments in affiliated issuers) (Note 5) $ 54,314,734
- -----------------------------------------------------------------------------------------------
Interest 16,132,178
- -----------------------------------------------------------------------------------------------
Total investment income 70,446,912
Expenses:
- -----------------------------------------------------------------------------------------------
Compensation of Manager (Note 2) 53,326,708
- -----------------------------------------------------------------------------------------------
Investor servicing and custodian fees (Note 2) 16,903,120
- -----------------------------------------------------------------------------------------------
Compensation of Trustees (Note 2) 166,795
- -----------------------------------------------------------------------------------------------
Administrative services (Note 2) 30,039
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class A (Note 2) 17,038,107
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class B (Note 2) 35,241,544
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class M (Note 2) 1,196,238
- -----------------------------------------------------------------------------------------------
Reports to shareholders 135,649
- -----------------------------------------------------------------------------------------------
Registration fees 967,286
- -----------------------------------------------------------------------------------------------
Auditing 11,886
- -----------------------------------------------------------------------------------------------
Legal 42,186
- -----------------------------------------------------------------------------------------------
Postage 1,193,948
- -----------------------------------------------------------------------------------------------
Other 472,113
- -----------------------------------------------------------------------------------------------
Total expenses 126,725,619
- -----------------------------------------------------------------------------------------------
Expense reduction (Note 2) (1,490,883)
- -----------------------------------------------------------------------------------------------
Net expenses 125,234,736
- -----------------------------------------------------------------------------------------------
Net investment loss (54,787,824)
- -----------------------------------------------------------------------------------------------
Net realized gain on investments (Notes 1, 3 and 5) (including realized
loss of $19,033,129 on sales of investments in affiliated issuers) 798,282,941
- -----------------------------------------------------------------------------------------------
Net realized loss on foreign currency transactions (2,158)
- -----------------------------------------------------------------------------------------------
Net unrealized appreciation of assets and liabilities in
foreign currencies during the period 12,544
- -----------------------------------------------------------------------------------------------
Net unrealized appreciation of investments during the period 2,953,094,070
- -----------------------------------------------------------------------------------------------
Net gain on investments 3,751,387,397
- -----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $3,696,599,573
- -----------------------------------------------------------------------------------------------
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
-------------------------------
1999* 1998
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
Increase in net assets
- ---------------------------------------------------------------------------------------------------------------
Operations:
- ---------------------------------------------------------------------------------------------------------------
Net investment loss $ (54,787,824) $ (88,429,562)
- ---------------------------------------------------------------------------------------------------------------
Net realized gain on investments and
foreign currency transactions 798,280,783 2,303,218,869
- ---------------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments and
assets and liabilities in foreign currencies 2,953,106,614 891,370,340
- ---------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 3,696,599,573 3,106,159,647
- ---------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
- ---------------------------------------------------------------------------------------------------------------
From net realized gain on investments
Class A (1,042,857,172) (699,467,888)
- ---------------------------------------------------------------------------------------------------------------
Class B (569,436,634) (385,798,466)
- ---------------------------------------------------------------------------------------------------------------
Class M (25,276,938) (15,960,864)
- ---------------------------------------------------------------------------------------------------------------
Class Y (106,713,548) (73,039,295)
- ---------------------------------------------------------------------------------------------------------------
Increase from capital share transactions (Note 4) 1,831,366,005 2,892,368,485
- ---------------------------------------------------------------------------------------------------------------
Total increase in net assets 3,783,681,286 4,824,261,619
Net assets
- ---------------------------------------------------------------------------------------------------------------
Beginning of period 22,916,651,972 18,092,390,353
- ---------------------------------------------------------------------------------------------------------------
End of period (including accumulated net
investment loss of $54,787,824 and $--, respectively) $26,700,333,258 $22,916,651,972
- ---------------------------------------------------------------------------------------------------------------
* Unaudited
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
- ------------------------------------------------------------------------------------------------------------------------------------
Six months
ended
Per-share January 31
operating performance (Unaudited) Year ended July 31
- ------------------------------------------------------------------------------------------------------------------------------------
1999 1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $21.36 $19.49 $15.73 $14.42 $11.19 $11.02
- ------------------------------------------------------------------------------------------------------------------------------------
Investment operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (.03)(c) (.04)(c) --(c) (.02)(c) .02 (.02)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 3.28 3.12 4.85 2.19 3.72 .65
- ------------------------------------------------------------------------------------------------------------------------------------
Total from
investment operations 3.25 3.08 4.85 2.17 3.74 .63
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions:
- ------------------------------------------------------------------------------------------------------------------------------------
From net realized gain
on investments (1.59) (1.21) (1.09) (.86) (.51) (.46)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (1.59) (1.21) (1.09) (.86) (.51) (.46)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $23.02 $21.36 $19.49 $15.73 $14.42 $11.19
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
- ------------------------------------------------------------------------------------------------------------------------------------
Total return at
net asset value (%)(a) 16.19* 16.83 32.22 15.49 34.72 5.49
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $16,310,719 $13,854,611 $11,158,273 $7,332,248 $4,895,180 $3,051,878
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(b) .46* .96 1.02 1.03 1.07 1.10
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets (%) (.14)* (.20) -- (.10) .17 (.18)
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 36.72* 60.04 59.77 57.92 65.43 57.74
- ------------------------------------------------------------------------------------------------------------------------------------
+ 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 period ended July 31, 1996 and thereafter, includes amounts paid
through brokerage services and expense offset arrangements. Prior period ratios exclude these amounts (Note 2).
(c) Per share net investment income (loss) has been determined on the basis of weighted average
number of shares outstanding during the period.
</TABLE>
<TABLE>
<CAPTION>
Financial highlights
(For a share outstanding throughout the period)
CLASS B
- ------------------------------------------------------------------------------------------------------------------------------------
Six months
ended
Per-share January 31
operating performance (Unaudited) Year ended July 31
- ------------------------------------------------------------------------------------------------------------------------------------
1999 1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $20.14 $18.57 $15.15 $14.01 $10.97 $10.89
- ------------------------------------------------------------------------------------------------------------------------------------
Investment operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (.10)(c) (.18)(c) (.12)(c) (.13)(c) (.06) (.05)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 3.06 2.96 4.63 2.13 3.61 .59
- ------------------------------------------------------------------------------------------------------------------------------------
Total from
investment operations 2.96 2.78 4.51 2.00 3.55 .54
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions:
- ------------------------------------------------------------------------------------------------------------------------------------
From net realized gain
on investments (1.59) (1.21) (1.09) (.86) (.51) (.46)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (1.59) (1.21) (1.09) (.86) (.51) (.46)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $21.51 $20.14 $18.57 $15.15 $14.01 $10.97
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
- ------------------------------------------------------------------------------------------------------------------------------------
Total return at
net asset value (%)(a) 15.73* 16.02 31.17 14.70 33.65 4.71
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $8,259,423 $7,263,280 $5,664,375 $3,405,318 $1,870,370 $911,069
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(b) .83* 1.71 1.77 1.78 1.82 1.84
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets (%) (.50)* (.95) (.75) (.85) (.58) (.91)
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 36.72* 60.04 59.77 57.92 65.43 57.74
- ------------------------------------------------------------------------------------------------------------------------------------
+ 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 period ended July 31, 1996 and thereafter, includes amounts paid
through brokerage services and expense offset arrangements. Prior period ratios exclude these amounts (Note 2).
(c) Per share net investment income (loss) has been determined on the basis of weighted average
number of shares outstanding during the period.
</TABLE>
<TABLE>
<CAPTION>
Financial highlights
(For a share outstanding throughout the period)
CLASS M
- ------------------------------------------------------------------------------------------------------------------------------------
Six months
ended For the period
Per-share January 31 Dec. 1, 1994+
operating performance (Unaudited) Year ended July 31 to July 31
- ------------------------------------------------------------------------------------------------------------------------------------
1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $20.93 $19.22 $15.60 $14.37 $11.79
- ------------------------------------------------------------------------------------------------------------------------------------
Investment operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (.08)(c) (.14)(c) (.08)(c) (.09)(c) (.01)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 3.21 3.06 4.79 2.18 3.10
- ------------------------------------------------------------------------------------------------------------------------------------
Total from
investment operations 3.13 2.92 4.71 2.09 3.09
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions:
- ------------------------------------------------------------------------------------------------------------------------------------
From net realized gain
on investments (1.59) (1.21) (1.09) (.86) (.51)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (1.59) (1.21) (1.09) (.86) (.51)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $22.47 $20.93 $19.22 $15.60 $14.37
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
- ------------------------------------------------------------------------------------------------------------------------------------
Total return at
net asset value (%)(a) 15.95* 16.21 31.57 14.97 27.42*
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $356,866 $322,277 $208,656 $87,782 $19,004
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(b) .71* 1.46 1.52 1.50 1.06*
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets (%) (.37)* (.69) (.50) (.57) (.24)*
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 36.72* 60.04 59.77 57.92 65.43
- ------------------------------------------------------------------------------------------------------------------------------------
+ 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 period ended July 31, 1996 and thereafter, includes amounts paid
through brokerage services and expense offset arrangements. Prior period ratios exclude these amounts (Note 2).
(c) Per share net investment income (loss) has been determined on the basis of weighted average
number of shares outstanding during the period.
</TABLE>
<TABLE>
<CAPTION>
Financial highlights
(For a share outstanding throughout the period)
CLASS Y
- ------------------------------------------------------------------------------------------------------------------------------------
Six months
ended For the period
Per-share January 31 March 31, 1994+
operating performance (Unaudited) Year ended July 31 to July 31
- ------------------------------------------------------------------------------------------------------------------------------------
1999 1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $21.66 $19.70 $15.85 $14.48 $11.22 $11.24
- ------------------------------------------------------------------------------------------------------------------------------------
Investment operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) --(c) .01(c) .04(c) .02(c) .03 --
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 3.33 3.16 4.90 2.21 3.74 (.02)
- ------------------------------------------------------------------------------------------------------------------------------------
Total from
investment operations 3.33 3.17 4.94 2.23 3.77 (.02)
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions:
- ------------------------------------------------------------------------------------------------------------------------------------
From net realized gain
on investments (1.59) (1.21) (1.09) (.86) (.51) --
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (1.59) (1.21) (1.09) (.86) (.51) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $23.40 $21.66 $19.70 $15.85 $14.48 $11.22
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
- ------------------------------------------------------------------------------------------------------------------------------------
Total return at
net asset value (%)(a) 16.34* 17.12 32.56 15.85 34.90 (0.18)*
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $1,773,352 $1,476,485 $1,061,087 $709,595 $351,817 $82,102
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(b) .33* .71 .77 .77 .83 .31*
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets (%) --* .06 .25 .15 .39 (.05)*
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 36.72* 60.04 59.77 57.92 65.43 57.74
- ------------------------------------------------------------------------------------------------------------------------------------
+ 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 period ended July 31, 1996 and thereafter, includes amounts paid
through brokerage services and expense offset arrangements. Prior period ratios exclude these amounts (Note 2).
(c) Per share net investment income (loss) has been determined on the basis of weighted average
number of shares outstanding during the period.
</TABLE>
Notes to financial statements
January 31, 1999 (Unaudited)
Note 1
Significant accounting policies
Putnam Voyager Fund (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 M and class Y shares. Class A
shares are sold with a maximum front-end sales charge of 5.75%. Class B
shares, which convert to class A shares after approximately eight years,
do not pay a front-end sales charge but pay a higher ongoing distribution
fee than class A shares, and are subject to a contingent deferred sales
charge, if those shares are redeemed within six years of purchase. Class M
shares are sold with a maximum front end sales charge of 3.50% and pay 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 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 Management.
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 sale price, or, if no sales are reported -- as in the case of
some securities traded over-the-counter -- the last reported bid price.
Securities quoted in foreign currencies are translated into U.S. dollars
at the current exchange rate. 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). 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) Foreign currency translation The accounting records of the fund are
maintained in U.S. dollars. The market value of foreign securities,
currency holdings, and 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 gains and losses are included with the net realized and unrealized
gain or loss on investments. Net realized gains and losses on foreign
currency transactions represent net realized 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 appreciation
and depreciation of assets and liabilities in foreign currencies 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.
F) 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 six months
ended January 31, 1999, the fund had no borrowings against the line of
credit.
G) 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.
H) 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.
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.
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, 0.50% of the next $5 billion and 0.475% of the next
$5 billion, 0.455% of the next $5 billion, 0.44% of the next $5 billion,
0.43% thereafter.
As part of the subcustodian contract between the subcustodian bank and the
PFTC, the subcustodian bank has a lien on the securities of the fund to
the extent permitted by the fund's investment restrictions to cover any
advances made by the subcustodian bank for the settlement of securities
purchased by the fund. At January 31, 1999, the payable to the
subcustodian bank represents the amount due for cash advance for the
settlement of a security purchased.
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 six months ended January 31, 1999, fund expenses were reduced by
$1,490,883 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 $15,000
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
in the fund and are 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 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 to 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, 1999, Putnam Mutual Funds Corp.,
acting as underwriter received net commissions of $2,297,139 and $61,175
from the sale of class A and class M shares, respectively and $4,952,671
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, 1999, Putnam Mutual
Funds Corp., acting as underwriter received $74,380 on class A
redemptions.
Note 3
Purchase and sales of securities
During the six months ended January 31, 1999, purchases and sales of
investment securities other than U.S. government obligations and
short-term investments aggregated $8,253,723,939 and $7,937,023,191,
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, 1999, there was an unlimited number of shares of beneficial
interest authorized. Transactions in capital shares were as follows:
Six months ended
January 31, 1999
- -----------------------------------------------------------------------------
Class A Shares Amount
- -----------------------------------------------------------------------------
Shares sold 96,789,360 $1,968,246,911
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 49,584,353 1,006,066,315
- -----------------------------------------------------------------------------
146,373,713 2,974,313,226
Shares
repurchased (86,499,868) (1,759,364,628)
- -----------------------------------------------------------------------------
Net increase 59,873,845 $1,214,948,598
- -----------------------------------------------------------------------------
Year ended
July 31, 1998
- -----------------------------------------------------------------------------
Class A Shares Amount
- -----------------------------------------------------------------------------
Shares sold 171,955,043 $3,517,913,589
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 37,008,241 676,509,789
- -----------------------------------------------------------------------------
208,963,284 4,194,423,378
Shares
repurchased (132,964,406) (2,708,486,833)
- -----------------------------------------------------------------------------
Net increase 75,998,878 $1,485,936,545
- -----------------------------------------------------------------------------
Six months ended
January 31, 1999
- -----------------------------------------------------------------------------
Class B Shares Amount
- -----------------------------------------------------------------------------
Shares sold 40,120,498 $ 763,548,684
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 27,943,032 530,077,635
- -----------------------------------------------------------------------------
68,063,530 1,293,626,319
Shares
repurchased (44,744,348) (849,295,257)
- -----------------------------------------------------------------------------
Net increase 23,319,182 $ 444,331,062
- -----------------------------------------------------------------------------
Year ended
July 31, 1998
- -----------------------------------------------------------------------------
Class B Shares Amount
- -----------------------------------------------------------------------------
Shares sold 87,432,869 $1,694,803,885
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 20,772,542 359,571,774
- -----------------------------------------------------------------------------
108,205,411 2,054,375,659
Shares
repurchased (52,505,238) (1,023,763,961)
- -----------------------------------------------------------------------------
Net increase 55,700,173 $1,030,611,698
- -----------------------------------------------------------------------------
Six months ended
January 31, 1999
- -----------------------------------------------------------------------------
Class M Shares Amount
- -----------------------------------------------------------------------------
Shares sold 3,160,793 $ 62,410,726
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 1,234,366 24,453,658
- -----------------------------------------------------------------------------
4,395,159 86,864,384
Shares
repurchased (3,905,954) (79,808,023)
- -----------------------------------------------------------------------------
Net increase 489,205 $ 7,056,361
- -----------------------------------------------------------------------------
Year ended
July 31, 1998
- -----------------------------------------------------------------------------
Class M Shares Amount
- -----------------------------------------------------------------------------
Shares sold 7,899,365 $ 158,011,193
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 842,975 15,156,766
- -----------------------------------------------------------------------------
8,742,340 173,167,959
Shares
repurchased (4,204,444) (84,838,578)
- -----------------------------------------------------------------------------
Net increase 4,537,896 $ 88,329,381
- -----------------------------------------------------------------------------
Six months ended
January 31, 1999
- -----------------------------------------------------------------------------
Class Y Shares Amount
- -----------------------------------------------------------------------------
Shares sold 13,740,337 $293,983,127
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 5,175,749 106,713,548
- -----------------------------------------------------------------------------
18,916,086 400,696,675
Shares
repurchased (11,300,930) (235,666,691)
- -----------------------------------------------------------------------------
Net increase 7,615,156 $165,029,984
- -----------------------------------------------------------------------------
Year ended
July 31, 1998
- -----------------------------------------------------------------------------
Class Y Shares Amount
- -----------------------------------------------------------------------------
Shares sold 24,981,685 $517,221,628
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 3,945,937 73,039,295
- -----------------------------------------------------------------------------
28,927,622 590,260,923
Shares
repurchased (14,640,061) (302,770,062)
- -----------------------------------------------------------------------------
Net increase 14,287,561 $287,490,861
- -----------------------------------------------------------------------------
Note 5
Transactions with Affiliated Issuers
Transactions during the year with companies in which the fund owned at least 5%
of the voting securities were as follows:
Purchase Sales Dividend Market
Affiliates cost cost Income Value
- -----------------------------------------------------------------------------
Name of affiliate
- -----------------------------------------------------------------------------
Dollar Tree Stores $ 6,375,415 $ 2,582,841 $ -- $ 183,364,710
Electronic Arts -- -- -- 131,902,269
Linear Technology Corp. 73,669,888 19,769,903 539,833 394,204,938
Luxotica Group SPA ADR 4,596,596 -- -- 51,145,456
National Oilwell, Inc. 2,383,878 30,709,399 -- 22,600,500
Office Depot Inc. 20,047,719 45,730,962 -- 253,889,234
OfficeMax, Inc. -- 19,442,114 -- 45,368,325
Parametric Technology
Corp. 69,463,445 -- -- 183,107,695
Telecom-TCI Ventures
Group Class A 13,632,293 -- -- 726,556,123
Thermo Cardio Systems,
Inc. 1,034,072 -- -- 21,676,314
WestWood One, Inc. -- -- -- 56,671,875
- -----------------------------------------------------------------------------
Totals $191,203,306 $118,235,219 $ 539,833 $2,070,487,439
PUTNAM 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
PUTNAM 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
PUTNAM INCOME FUNDS
American Government Income Fund
Diversified Income Trust
Global Governmental Income Trust
High Quality Bond Fund +
High Yield Advantage Fund [DBL. DAGGER]
High Yield Total Return Fund
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
PUTNAM 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
LIFESTAGE SM 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
+ Formerly Putnam Federal Income Trust
[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 neither insured nor guaranteed by
the U.S. government. These funds are managed to maintain a price of $1.00
per share, although there is no assurance that this price will be
maintained in the future.
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.
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
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
Donald S. Perkins
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
Roland W. Gillis
Vice President
Charles H. Swanberg
Vice President
Robert R. Beck
Vice President and Fund Manager
Michael P. Stack
Vice President and Fund Manager
Michael E. Nance
Vice President and Fund Manager
Richard A. Monaghan
Vice President
John R. Verani
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. You can also learn
more at Putnam Investments' website: http://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
www.putnaminv.com
- ---------------------
BULK RATE
U.S. POSTAGE PAID
PUTNAM
INVESTMENTS
- ---------------------
SA016 49944 - 007/883/530 3/99
PUTNAM INVESTMENTS [SCALE LOGO OMITTED]
- --------------------------------------------------------------------------
Putnam Voyager Fund
Supplement to Semiannual Report dated 1/31/99
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, and M shares, which are discussed more
extensively in the annual report.
ANNUAL RESULTS AT A GLANCE
- --------------------------------------------------------------------------
Total return
for periods ended 1/31/99 NAV
6 months 16.34%
1 year 30.90
5 years 157.48
Annual average 20.82
10 years 535.51
Annual average 20.31
Life of fund
Annual average (since class A inception, 4/1/69) 14.62
- --------------------------------------------------------------------------
Share value: NAV
7/31/98 $21.66
1/31/99 $23.40
- --------------------------------------------------------------------------
Distributions: No. Income Capital gains Total
1 $0.000 $1.585 $1.585
- --------------------------------------------------------------------------
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. Performance data reflects an expense
limitation previously in effect. Without the expense limitation, total
returns would have been lower. 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.
