Putnam
Voyager
Fund
SEMIANNUAL REPORT ON PERFORMANCE AND OUTLOOK
1-31-00
[SCALE LOGO OMITTED]
From the Chairman
[GRAPHIC OMITTED: PHOTO OF GEORGE PUTNAM]
[copyright] Karsh, Ottawa
Dear Shareholder:
The markets continued to provide their share of challenges and
opportunities as your fund closed its books on the first half of fiscal
2000. In the following report, the fund's managers discuss performance for
the period and prospects for the months ahead.
This is the last letter to you and the other shareholders of Putnam
Voyager Fund that I will be signing. After more than 30 years as Chairman
of the Trustees and President of the Putnam Funds, the time has come for
me to step aside. In June, John Hill will become Chairman. John is
currently an independent Trustee and has served on the board for the past
14 years. In addition, my son, George Putnam, III, will take on the role
of President. I am confident that the leadership of the funds will be in
exceptionally strong hands.
I will become Chairman Emeritus, remain a Putnam shareholder, and stay in
close touch with the funds. It has been my privilege to serve you.
Respectfully yours,
/S/GEORGE PUTNAM
George Putnam
Chairman of the Trustees
March 15, 2000
Report from the Fund Managers
Robert R. Beck
Roland W. Gillis
Paul E. Marrkand
Michael P. Stack
Charles H. Swanberg
A powerful rally among growth stocks lifted Putnam Voyager Fund's
performance during the past six months, the first half of your fund's 2000
fiscal year. By bidding up the stocks of many technology companies,
investors demonstrated great confidence in the ability of computer and
telecommunications technology to transform the way business is conducted.
Other growth sectors, including media, advertising, and broadcasting,
flourished thanks to a favorable advertising cycle and more vigorous
competition. The overall sense of investor optimism helped markets shrug
off concerns for Y2K-related risks and rightly so, as the new year proved
that worries had been unfounded. For the period, the fund's class A share
return was 36.85% at NAV (28.98% at public offering price).
Total return for 6 months ended 1/31/00
Class A Class B Class C Class M
NAV POP NAV CDSC NAV CDSC NAV POP
- ---------------------------------------------------------------------------
36.85% 28.98% 36.30% 31.30% 36.42% 35.42% 36.57% 31.77%
- ---------------------------------------------------------------------------
Past performance is no indication of future results. Performance
information for longer periods and explanation of performance calculation
methods begin on page 6.
* FUND THRIVES ON AMID GROWTH STOCK RALLY
Although growth stocks have experienced significant gains in the past, the
rally in the closing months of 1999 was memorable for its magnitude,
breadth, and unrelenting nature. After slumping a bit in the spring and
summer, growth stocks perked up in September and gathered pace month after
month. Neither rising interest rates nor looming Y2K concerns derailed the
rally. The technology sector was the locomotive.
Your fund was well positioned to take advantage of the rally. We research
companies to identify those that we think can achieve strong rates of
earnings growth. While we invest in a broad variety of growth companies --
small, midsize, and large companies in a variety of sectors -- we have the
flexibility to emphasize the companies and sectors we find most
attractive. During most of the semiannual period, a little more than one
third of your fund's assets was invested in technology companies. The fund
also favored media and broadcasting companies, while shying away from
sectors in which companies with earnings growth were scarcer, such as
energy, financials, and health care.
[GRAPHIC OMITTED: horizontal bar chart TOP INDUSTRY SECTORS]
TOP INDUSTRY SECTORS*
Technology 35.6%
Media 17.3%
Consumer 8.9%
Telecommunications 8.2%
Financial 7.6%
Footnote reads:
*Based on net assets as of 1/31/00. Holdings will vary over time.
This positioning worked exceptionally well because of the transforming
impact of technology on business practices. Companies must now invest in
technology because of its strong positive increase on productivity. If a
company fails to innovate, it may suffer a competitive disadvantage.
Twenty years ago, businesses devoted only about 10% of their capital
investments to computer technologies. That proportion has grown steadily,
so that in 1999, approximately half of all capital spending by businesses
went to technology goods or services. Evidence is mounting that technology
is increasing the economy's productivity as many experts have anticipated.
The Bureau of Labor Statistics reported that U.S. productivity rose to an
annualized rate of 5% in the second half of 1999. This trend is comparable
to that during the Industrial Revolution, when first steam power and later
electricity generated rapid surges in productivity. Not surprisingly,
technology stocks now represent nearly 30% of the S&P 500 Index of large
company stocks.
* INTERNET SERVES AS CATALYST
A fortunate byproduct of technology innovation has been a welcome
proliferation of investment opportunities. In the past, the sector tended
to be highly cyclical, appreciating when PC sales rose or semiconductor
supplies were tight and plunging when these factors turned negative. But
just as innovation has gone in many directions during the 1990s, so have
the investment opportunities multiplied. New technology stock issues
continue to come to market at rapid rate.
The catalyst for the recent rally was the Internet, which is changing many
aspects of business and consumer commerce. Investing in technology has
become imperative for businesses because of the cost-cutting opportunities
it provides. Our tactic was to take advantage of this trend by owning
companies that supply the components for Internet connectivity --
software, telecommunications, computing, and network equipment -- and the
services that support them. Examples include Oracle, which makes business
software for e-commerce, and Intuit, which shifted its focus from consumer
financial software to making software for financial institutions such as
banks. Your fund also owned Maxim Integrated, a supplier to semiconductor
manufacturers, and Metromedia Fiber, which produces fiber-optic cables for
carrying computer data at very high speeds. Among the fund's cellular
telephone holdings were Nokia, one of the leading global manufacturers of
cell phones and other telecommunications equipment, and Motorola, which
produces, in addition to phones, some of the most advanced semiconductor
chips in personal computers. While these holdings, along with others
discussed in this report, were viewed favorably at the end of the fiscal
period, all are subject to review and adjustment in accordance with the
fund's investment strategy and may vary in the future.
"Enthusiasts point to faster productivity growth as proof that America's
economy is being fundamentally revolutionized by globalization and
technology."
- -- The Economist, February 12, 2000
In addition to Nokia, which is based in Finland, several of the fund's
other international holdings also performed well, in some cases outpacing
their U.S. counterparts. Approximately 10% of the fund's assets were in
Japanese stocks. One of the larger holdings was Sony Corp. This well-known
multinational company appreciated handsomely thanks to a broad variety of
successful new product launches. Examples include Playstation II, which is
popular with children and adults in many markets of the world, camcorders,
and Sony's extraordinarily slim laptop PCs. Your fund also owned Softbank,
a Japanese holding company that provides venture capital funding for
Internet and other technology-related start-ups.
* CONSUMER STOCKS EXPAND BRANDING EFFORTS
Your fund also favored media and broadcasting stocks in the period.
Companies in these sectors are benefiting from the strong domestic economy
and consumer confidence. Consumers with rising incomes are faced with a
wider array of consumer appliances and services and falling prices thanks
to Internet distribution. Companies are finding it more important than
ever to maintain customer loyalty by establishing a successful brand
image. Advertising spending is growing at twice the rate of economic
growth.
[GRAPHIC OMITTED: TOP 10 HOLDINGS]
TOP 10 HOLDINGS
AT&T -- Liberty Media Group
Media
CBS
Media
Motorola
Technology
Microsoft
Technology
Oracle
Technology
Linear Technology
Technology
Sony (Japan)
Technology
MediaOne Group
Media
Maxim Integrated Products
Technology
Oy Nokia
Telecommunications equipment
Footnote reads:
These holdings represent 21.2% of the fund's net assets as of 1/31/00.
Portfolio holdings will vary over time.
Many of your fund's holdings were beneficiaries of this trend. Among the
larger companies were the television network CBS, AT&T -- Liberty Media,
and AOL, which have enjoyed rising advertising revenues. CBS also
benefited from its agreement to be acquired by Viacom. By contrast, we
decided to sell AOL at a profit late in the period after it agreed to
merge with Time Warner. The stock had appreciated in the time the fund
owned it, but we believe the decision to merge with Time Warner would
change the character of the company because Time Warner is an older media
company experiencing slower growth. Among smaller company fund holdings
benefiting from the surge of advertising were Outdoor Systems (which was
acquired in the period by Infinity Broadcasting, another large media
holding) and Clear Channel Communications. Both of these companies offer
advertisers a national audience for their ads. Outdoor Systems maintains
roadside billboards, and Clear Channel operates radio stations in major
urban markets throughout the United States. Your fund also owned
advertising firms that reaped a windfall, including Omnicom and Citadel
Communications.
* GLOBAL ECONOMY SUPPORTIVE FOR SUSTAINED STOCK PERFORMANCE
We believe that growth stocks are likely to continue outperforming the
market and we have positioned the fund to continue capitalizing on the
transition occurring in the world economy. In part because of new
technological capabilities, the U.S. and world economies now appear
capable of sustaining higher rates of economic growth over longer periods
without inflation than had been thought possible in recent years. Stable
economic growth of between 2% and 4% per year should be sufficient to fuel
the capital spending that has supported growth stocks in the past six
months. As long as interest rates and inflation remain at tolerable
levels, companies that can deliver earnings growth well in excess of the
average for all stocks should continue to command premium prices. While
volatility remains a risk in any type of equity investing, we believe the
fundamental outlook for growth stocks remains robust.
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 1/31/00, 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 mainly through common
stocks.
<TABLE>
<CAPTION>
TOTAL RETURN FOR PERIODS ENDED 1/31/00
Class A Class B Class C Class M
(inception dates) (4/1/69) (4/27/92) (7/26/99) (12/1/94)
NAV POP NAV CDSC NAV CDSC NAV POP
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
6 months 36.85% 28.98% 36.30% 31.30% 36.42% 35.42% 36.57% 31.77%
- ---------------------------------------------------------------------------------------------
1 year 44.16 35.90 43.01 38.01 43.22 42.22 43.50 38.50
- ---------------------------------------------------------------------------------------------
5 years 273.08 251.77 259.45 257.45 259.67 259.67 264.18 251.39
Annual average 30.13 28.60 29.16 29.02 29.18 29.18 29.50 28.58
- ---------------------------------------------------------------------------------------------
10 years 698.99 652.59 638.86 638.86 642.09 642.09 660.16 633.45
Annual average 23.10 22.36 22.14 22.14 22.19 22.19 22.49 22.05
- ---------------------------------------------------------------------------------------------
Annual average
(life of fund) 15.43 15.21 14.35 14.35 14.56 14.56 14.66 14.53
- ---------------------------------------------------------------------------------------------
</TABLE>
COMPARATIVE INDEX RETURNS FOR PERIODS ENDED 1/31/00
Russell MidCap Consumer
Growth Index price index
- --------------------------------------------------------------------------
6 months 36.82% 1.44%
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1 year 46.86 2.67
- --------------------------------------------------------------------------
5 years 239.78 12.28
Annual average 27.72 2.34
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10 years 525.17 32.73
Annual average 20.12 2.87
- --------------------------------------------------------------------------
Annual average
(life of fund) --* 5.14
- --------------------------------------------------------------------------
Past performance is no assurance of future results. More recent returns
may be more or less than those shown. Returns for class A and class M
shares reflect the current maximum initial sales charges of 5.75% and
3.50%, respectively. Class B share returns for the 1-, 5-, and 10-year
(where available) and life-of-fund periods reflect the applicable
contingent deferred sales charge (CDSC), which is 5% in the first year,
declines to 1% in the sixth year, and is eliminated thereafter. Returns
shown for class B and class M shares for periods prior to their inception
are derived from the historical performance of class A shares, adjusted to
reflect both the initial sales charge or CDSC, if any, currently
applicable to each class and in the case of class B and class M shares the
higher operating expenses applicable to such shares. For class C shares,
returns for periods prior to their inception are derived from the
historical performance of class A shares, adjusted to reflect both the
CDSC currently applicable to class C shares, which is 1% for the first
year and is eliminated thereafter, and the higher operating expenses
applicable to class C shares. All returns assume reinvestment of
distributions at NAV. Investment return and principal value will fluctuate
so that an investor's shares when redeemed may be worth more or less than
their original cost.
*The Russell MidCap Growth Index did not exist at the time of the fund's
inception.
PRICE AND DISTRIBUTION INFORMATION 6 MONTHS ENDED 1/31/00
Class A Class B Class C Class M
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Distributions (number) 1 1 1 1
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Income -- -- -- --
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Capital gains
Long-term $2.892 $2.892 $2.892 $2.892
- ------------------------------------------------------------------------------
Short-term 0.089 0.089 0.089 0.089
- ------------------------------------------------------------------------------
Total $2.981 $2.981 $2.981 $2.981
- ------------------------------------------------------------------------------
Share value: NAV POP NAV NAV NAV POP
- ------------------------------------------------------------------------------
7/31/99 $24.25 $25.73 $22.57 $24.25 $23.61 $24.47
- ------------------------------------------------------------------------------
1/31/00 30.02 31.85 27.60 29.92 29.08 30.13
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TOTAL RETURN FOR PERIODS ENDED 12/31/99 (most recent calendar quarter)
Class A Class B Class C Class M
(inception dates) (4/1/69) (4/27/92) (7/26/99) (12/1/94)
NAV POP NAV CDSC NAV CDSC NAV POP
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
6 months 36.74% 28.86% 36.18% 31.18% 36.32% 35.32% 36.48% 31.73%
- ---------------------------------------------------------------------------------------------
1 year 56.13 47.14 54.92 49.92 55.08 54.08 55.49 50.02
- ---------------------------------------------------------------------------------------------
5 years 285.76 263.67 271.23 269.23 271.82 271.82 276.48 263.23
Annual average 31.00 29.46 30.00 29.86 30.04 30.04 30.36 29.43
- ---------------------------------------------------------------------------------------------
10 years 635.42 592.98 580.19 580.19 582.67 582.67 599.82 575.53
Annual average 22.08 21.36 21.13 21.13 21.18 21.18 21.48 21.05
- ---------------------------------------------------------------------------------------------
Annual average
(life of fund) 15.59 15.36 14.51 14.51 14.72 14.72 14.82 14.68
- ---------------------------------------------------------------------------------------------
Past performance is no assurance of future results. More recent returns
may be more or less than those shown. They do not take into account any
adjustment for taxes payable on reinvested distributions. Investment
returns and principal value will fluctuate so that an investor's shares
when sold may be worth more or less than their original cost. See first
page of performance section for performance calculation method.
</TABLE>
Terms and definitions
Total return shows how the value of the fund's shares changed over time,
assuming you held the shares through the entire period and reinvested all
distributions in the fund.
Class A shares are generally subject to an initial sales charge.
Class B shares may be subject to a sales charge upon redemption.
Class C shares are not subject to an initial sales charge and are subject
to a contingent deferred sales charge only if the shares are redeemed
during the first year.
Class M shares have a lower initial sales charge and a higher 12b-1 fee
than class A shares and no sales charge on redemption.
Net asset value (NAV) is the value of all your fund's assets, minus any
liabilities, divided by the number of outstanding shares, not including
any initial or contingent deferred sales charge.
Public offering price (POP) is the price of a mutual fund share plus the
maximum sales charge levied at the time of purchase. POP performance
figures shown here assume the 5.75% maximum sales charge for class A
shares and 3.50% for class M shares.
Contingent deferred sales charge (CDSC) is a charge applied at the time of
the redemption of class B or C shares and assumes redemption at the end of
the period. Your fund's class B CDSC declines from a 5% maximum during the
first year to 1% during the sixth year. After the sixth year, the CDSC no
longer applies. The CDSC for class C shares is 1% for one year after
purchase.
Comparative benchmarks
Russell MidCap Growth Index* measures the performance of those Russell
Midcap companies with higher price-to-book ratios and higher forecasted
growth values. The stocks are also members of the Russell 1000 Growth
Index. 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.
Consumer price index (CPI) is a commonly used measure of inflation; it
does not represent an investment return.
A guide to the financial statements
These sections of the report constitute the fund's financial
statements.
The fund's portfolio lists all the fund's investments and their values as
of the last day of the reporting period. Holdings are organized by asset
type and industry sector, country, or state to show areas of concentration
and diversification.
Statement of assets and liabilities shows how the fund's net assets and
share price are determined. All investment and noninvestment assets are
added together. Any unpaid expenses and other liabilities are subtracted
from this total. The result is divided by the number of shares to
determine the net asset value per share, which is calculated separately
for each class of shares. (For funds with preferred shares, the amount
subtracted from total assets includes the net assets allocated to
remarketed preferred shares.)
Statement of operations shows the fund's net investment gain or loss for
the reporting period. This is determined by adding up all the fund's
earnings -- from dividends and interest income -- and subtracting its
operating expenses. This statement also lists any net gain or loss the
fund realized on the sales of its holdings and -- for holdings that remain
in the portfolio -- any change in unrealized gains or losses over the
period.
Statement of changes in net assets shows how the fund's net assets were
affected by distributions to shareholders and by changes in the number of
the fund's shares. It lists distributions and their sources (net
investment income or realized capital gains) over the current reporting
period and the most recent fiscal year-end. The distributions listed here
may not match the sources listed in the Statement of operations because
the distributions are determined on a tax basis and may be paid in a
different period from the one in which they were earned.
Financial highlights provide an overview of the fund's investment results,
per-share distributions, expense ratios, net investment income ratios and
portfolio turnover in one summary table, reflecting the five most recent
reporting periods. In a semiannual report, the highlight table also
includes the current reporting period. For open-end funds, a separate
table is provided for each share class.
<TABLE>
<CAPTION>
The fund's portfolio
January 31, 2000 (Unaudited)
COMMON STOCKS (98.4%) (a)
NUMBER OF SHARES VALUE
<S> <C> <C>
Business Services (4.0%)
- --------------------------------------------------------------------------------------------------------------------------
3,703,200 Celestica, Inc. (Canada) (NON) $ 149,053,800
808,000 CheckFree Holdings Corp. (NON) 47,672,000
3,152,579 Cintas Corp. 147,678,623
5,513,815 Concord EFS, Inc. (NON) 111,999,367
2,885,400 Convergys Corp. (NON) 84,758,625
2,697,500 Electronic Data Systems Corp. 182,418,438
778,800 Exodus Communications, Inc. (NON) 89,464,650
3,023,150 Omnicom Group, Inc. 283,231,366
1,140,000 Sapient Corp. (NON) 100,747,500
3,702,500 Serco Group PLC (United Kingdom) (AFF) 135,607,513
350,600 Stamps.com, Inc. (NON) 11,745,100
542,200 TMP Worldwide, Inc. (NON) 75,975,775
1,200,000 USWeb Corp. (NON) 34,425,000
867,900 Verio, Inc. (NON) 55,871,063
136,400 Viant Corp. (NON) 13,094,400
1,771,100 Whittman-Hart, Inc. (NON) 62,874,050
---------------
1,586,617,270
Computer Services (0.3%)
- --------------------------------------------------------------------------------------------------------------------------
2,697,673 Capita Group PLC (United Kingdom) 42,824,121
6,414,802 Misys PLC (United Kingdom) 89,296,854
---------------
132,120,975
Computer Software (1.6%)
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426,953 SAP AG (Germany) 240,882,955
428,400 Softbank Corp. (Japan) 418,904,771
---------------
659,787,726
Conglomerates (1.4%)
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1,705,000 General Electric Co. 227,404,375
7,567,500 Tyco International Ltd. 323,510,625
---------------
550,915,000
Consumer (8.9%)
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800,900 Ames Department Stores, Inc. (NON) 16,718,788
2,594,050 Bed Bath & Beyond, Inc. (NON) 70,525,734
804,400 Carrefour Supermarche SA (France) 127,027,035
9,946,600 Cendant Corp. (NON) 200,796,988
5,141,100 Costco Wholesale Corp. (NON) 251,592,581
4,098,157 Dollar Tree Stores, Inc. (AFF) (NON) 180,575,043
2,695,883 Extended Stay America, Inc. (NON) 21,061,586
1,400,000 Harrah's Entertainment, Inc. (NON) 27,912,500
7,646,850 Home Depot, Inc. (The) 433,002,881
1,119,600 HomeStore.com, Inc. (NON) 109,230,975
394,800 International Speedway Corp. Class A 19,888,050
9,433,737 J.D. Wetherspoon PLC (United Kingdom) 70,231,238
117,900 Kadokawa Shoten Publishing Co., Ltd. (Japan) 34,037,065
1,999,700 Kimberly-Clark Corp. 123,856,419
4,660,898 Kohls Corp. (NON) 326,845,472
1,919,637 Michaels Stores, Inc. (AFF) (NON) 51,350,290
2,999,450 Nike, Inc. 136,474,975
1,050,400 PizzaExpress PLC (United Kingdom) (NON) 13,790,846
1,915,200 Priceline.com, Inc. (NON) 111,081,600
1,143,000 Seven-Eleven Japan Co., Ltd. (Japan) (NON) 167,117,692
1,527,450 SFX Entertainment, Inc. Class A (NON) 49,737,591
6,097,361 Starbucks Corp. (NON) 195,115,552
5,680,287 TJX Cos., Inc. (The) 92,659,682
4,164,315 Tandy Corp. 203,530,896
1,847,900 Viacom, Inc. Class B (NON) 102,327,463
4,251,200 Wal-Mart Stores, Inc. 232,753,200
6,036,000 Walgreen Co. 166,744,500
935,740 Williams-Sonoma, Inc. (NON) 29,651,261
---------------
3,565,637,903
Financial (7.6%)
- --------------------------------------------------------------------------------------------------------------------------
2,284,150 AFLAC, Inc. 99,217,766
1,296,600 American Express Co. 213,695,888
1,763,762 American International Group, Inc. 183,651,718
1,814,250 Capital One Financial Corp. 74,384,250
7,019,850 Citigroup, Inc. 403,202,634
1,181,500 Fannie Mae 70,816,156
1,441,550 Federal Home Loan Mortgage Corp. 72,347,791
6,043,550 Fifth Third Bancorp 401,140,631
14,774,517 Firstar Corp. 352,741,593
984,800 Franklin Resources, Inc. 35,145,050
74,500 Goldman Sachs Group, Inc. (The) 6,826,063
4,019,287 Intuit, Inc. (NON) 242,413,247
1,236,400 MBNA Corp. 31,219,100
1,407,000 Merrill Lynch & Co., Inc. 122,057,250
919,000 Morgan Stanley, Dean Witter, Discover and Co. 60,883,750
715,900 National Commerce Bancorporation 14,899,669
1,221,600 Northern Trust Corp. 73,754,100
837,900 Progressive Corp. (The) 52,159,275
1,674,000 Providian Financial Corp. 141,243,750
5,878,900 Schwab (Charles) Corp. 212,007,831
1,359,550 SunTrust Banks, Inc. 80,978,197
2,980,602 TCF Financial Corp. 68,367,558
621,100 Zions Bancorp 36,722,538
---------------
3,049,875,805
Health Care (5.9%)
- --------------------------------------------------------------------------------------------------------------------------
2,083,100 Amgen, Inc. (NON) 132,667,431
778,400 Biovail Corp. International (Canada) (NON) 38,822,700
4,556,500 Columbia/HCA Healthcare Corp. 124,449,406
785,300 Genentech, Inc. (NON) 110,334,650
3,520,000 IMS Health, Inc. 78,980,000
1,967,000 Johnson & Johnson 169,284,938
1,404,500 Lincare Holdings, Inc. (NON) 49,771,969
6,836,740 Medtronic, Inc. 312,780,855
5,746,992 Merck & Co., Inc. 452,934,807
393,900 PE Corp.-PE Biosystems Group 58,986,525
3,641,000 Pfizer, Inc. 132,441,375
1,164,793 Pharmacia & Upjohn, Inc. 54,745,271
875,600 QLT PhotoTherapeutics, Inc. (Canada) (NON) 60,471,125
981,285 Sepracor, Inc. (NON) 137,379,900
1,359,450 Stryker Corp. 85,645,350
3,070,632 Sybron International Corp. (NON) 70,816,451
1,648,625 Thermo Cardiosystems, Inc. (NON) 19,062,227
235,003 ThermoLase Corp. (NON) 514,069
410,000 Transkaryotic Therapies, Inc. (Malaysia) (NON) 13,350,625
2,335,000 Warner-Lambert Co. 221,679,063
672,528 Waters Corp. (NON) 49,683,006
---------------
2,374,801,743
Industrial (4.3%)
- --------------------------------------------------------------------------------------------------------------------------
332,200 Calpine Corp. (NON) 24,292,125
1,198,600 Chevron, Inc. 100,158,013
3,027,500 Conoco, Inc. 70,578,594
1,810,150 Exxon Mobil Corp. 151,147,525
3,142,100 Halliburton Co. 113,115,600
1,247,000 Minnesota Mining & Manufacturing Co. 116,750,375
3,152,750 Nabors Industries, Inc. (NON) 93,400,219
4,046,600 Noble Drilling Corp. (NON) 118,615,963
1,053,100 Praxair, Inc. 42,716,369
3,861,600 Rockwell International Corp. 190,907,850
2,515,400 Royal Dutch Petroleum Co. PLC ADR (Netherlands) 138,504,213
967,200 Schlumberger Ltd. 59,059,650
1,900,800 Sealed Air Corp. (NON) 106,682,400
2,038,800 Thermo Instrument Systems, Inc. (NON) 32,748,225
1,834,462 Transocean Sedco Forex, Inc. 58,358,825
824,800 Weyerhaeuser Co. 47,322,900
2,489,500 Willamette Industries, Inc. 102,069,500
1,662,000 Williams Cos., Inc. 64,402,500
1,382,700 du Pont (E.I.) de Nemours & Co., Ltd. 81,579,300
---------------
1,712,410,146
Media (17.3%)
- --------------------------------------------------------------------------------------------------------------------------
6,419,246 AMFM, Inc. (NON) 500,701,188
30,392,651 AT&T Corp. -- Liberty Media (NON) 1,553,824,282
2,919,733 Adelphia Communications Corp. (NON) 193,249,828
19,810,180 CBS Corp. (NON) 1,155,181,121
2,455,300 CMG Information Services, Inc. (NON) 276,374,706
590,000 CNET, Inc. (NON) 28,910,000
799,200 Citadel Communications Corp. (NON) 39,960,000
6,055,808 Clear Channel Communications, Inc. (NON) 523,070,416
2,784,350 Comcast Corp. Class A 128,080,100
1,756,624 DoubleClick, Inc. (NON) 173,576,409
1,633,600 Echostar Communications Corp. Class A (NON) 133,036,300
1,247,300 Entercom Communications Corp. (NON) 66,262,813
1,036,181 Hispanic Broadcasting Corp. (NON) 107,698,063
16,771,398 Infinity Broadcasting Corp. Class A (NON) 545,070,435
1,303,000 InfoSpace.com, Inc. (NON) 182,582,875
1,688,731 Lamar Advertising Co. (NON) 99,001,855
2,650,500 Lycos, Inc. 194,646,094
7,377,100 MediaOne Group, Inc. (NON) 586,479,450
19,000 OpenTV Corp. (NON) 1,891,688
663,700 SportsLine USA, Inc. (NON) 23,436,906
1,454,600 Univision Communications, Inc. Class A (NON) 155,824,025
3,068,350 USA Networks, Inc. (NON) 152,266,869
2,015,000 WestWood One, Inc. (AFF) (NON) 122,663,125
---------------
6,943,788,548
Technology (35.6%)
- --------------------------------------------------------------------------------------------------------------------------
3,396,500 ADC Telecommunications, Inc. (NON) 223,956,719
1,117,400 ASM Lithography Holding N.V. (Netherlands) (NON) 137,370,363
1,185,000 Advanced Fibre Communications (NON) 43,622,813
252,300 Agile Software Corp. (NON) 37,214,250
204,600 Agilent Technologies, Inc. (NON) 13,541,963
3,482,850 Altera Corp. (NON) 228,997,388
1,852,900 Amdocs Ltd. (NON) 98,551,119
1,995,000 Analog Devices, Inc. (NON) 186,532,500
428,700 Apple Computer, Inc. (NON) 44,477,625
2,754,550 Applied Materials, Inc. (NON) 378,061,988
110,000 Ariba, Inc. (NON) 17,888,750
955,800 BMC Software, Inc. (NON) 36,200,925
1,020,000 BroadVision, Inc. (NON) 129,858,750
291,200 Broadcom Corp. (NON) 84,247,800
205,000 Brocade Communications Systems (NON) 33,210,000
606,500 CIENA Corp. (NON) 39,801,563
2,276,100 Cisco Systems, Inc. (NON) 249,232,950
1,039,100 Compaq Computer Corp. 28,445,363
5,173,900 Computer Associates International, Inc. 355,382,256
1,281,600 Comverse Technology, Inc. (NON) 183,749,400
2,404,000 Corning, Inc. 370,817,000
3,531,300 Dell Computer Corp. (NON) 135,734,344
1,549,500 E-Tek Dynamics, Inc. (NON) 282,009,000
137,100 E.piphany, Inc. (NON) 21,661,800
3,128,890 Electronic Arts, Inc. (NON) 255,786,758
416,300 Extreme Networks, Inc. (NON) 35,229,388
3,489,600 Flextronics International Ltd. (NON) 173,389,500
1,977,800 Gateway, Inc. (NON) 121,016,638
717,300 I2 Technologies, Inc. (NON) 138,169,913
5,326,300 Intel Corp. 526,970,806
2,207,820 JDS Uniphase Corp. (NON) 450,257,291
1,731,100 Jabil Circuit, Inc. (NON) 109,492,075
1,084,213 Juniper Networks, Inc. (NON) 146,707,572
3,289,160 KLA Tencor Corp. (NON) 192,827,005
699,100 LAM Research Corp. (NON) 87,300,113
2,985,900 LSI Logic Corp. (NON) 244,097,325
318,100 Legato Systems, Inc. (NON) 8,012,144
1,376,500 Lernout & Hauspie Speech Products N.V. (Belgium) (NON) 64,695,500
796,800 Lexmark International Group, Inc. Class A (NON) 75,098,400
7,232,132 Linear Technology Corp. 684,792,499
470,000 Macromedia, Inc. (NON) 32,165,625
11,660,992 Maxim Integrated Products, Inc. 584,507,224
9,286,400 Microsoft Corp. (NON) 908,906,400
7,263,250 Motorola, Inc. 993,249,438
1,513,500 Network Appliance, Inc. (NON) 151,917,563
16,229,100 Oracle Corp. (NON) 810,694,261
908,000 PMC-Sierra, Inc. (NON) 163,894,000
11,811,514 Parametric Technology Corp. (NON) 253,209,331
546,200 Phone.com, Inc. (NON) 60,082,000
1,928,200 Portal Software, Inc. (NON) 95,686,925
303,300 QLogic Corp. (NON) 46,385,944
873,276 QUALCOMM, Inc. (NON) 110,906,052
849,900 RF Micro Devices, Inc. (NON) 68,841,900
1,150,000 Rational Software Corp. (NON) 59,800,000
556,900 RealNetworks, Inc. (NON) 87,537,719
453,000 Reback Networks, Inc. (NON) 84,342,938
616,400 Rohm Co. Ltd. (Japan) 203,208,766
898,500 SDL, Inc. (NON) 232,879,969
911,700 STMicroelectronics N.V. ADR (France) 153,507,488
1,356,654 Sanmina Corp. (NON) 144,144,488
200,000 Silknet Software, Inc. (NON) 29,525,000
1,213,672 Solectron Corp. (NON) 88,142,929
2,619,800 Sony Corp. (Japan) 657,755,626
2,091,100 Sun Microsystems, Inc. (NON) 164,282,044
1,075,654 Synopsys, Inc. (NON) 49,681,769
2,099,900 Tellabs, Inc. (NON) 113,394,600
1,939,520 Teradyne, Inc. (NON) 125,583,920
2,971,100 VERITAS Software Corp. (NON) 433,409,213
1,885,900 VeriSign, Inc. (NON) 304,337,113
847,600 Vignette Corp. (NON) 165,282,000
1,295,000 Vitesse Semiconductor Corp. (NON) 56,332,500
3,216,000 Xilinx, Inc. (NON) 147,132,000
---------------
14,255,136,301
Telecommunication Equipment (3.2%)
- --------------------------------------------------------------------------------------------------------------------------
195,900 Hikari Tsushin, Inc. (Japan) 342,980,027
485,000 Nokia Corp. ADR (Finland) 88,755,000
3,081,050 Oy Nokia AB Class A, (Finland) 553,747,134
4,332,300 Telefonaktiebolaget LM Ericsson Class B, (Sweden) (NON) 304,041,644
---------------
1,289,523,805
Telecommunications (8.2%)
- --------------------------------------------------------------------------------------------------------------------------
2,220,400 ALLTEL Corp. 148,211,700
1,004,500 Allegiance Telecom, Inc. (NON) 105,849,188
5,058,400 American Tower Corp. Class A (NON) 181,470,100
3,272,470 Covad Communications Group 144A (NON) 231,527,253
441,400 Focal Communications Corp. (NON) 17,711,175
3,166,618 Global Crossing Ltd. (NON) 160,705,864
5,608,366 Global TeleSystems Group, Inc. (NON) 139,858,627
1,395,190 Intermedia Communications, Inc. (NON) 59,993,170
1,403,850 Level 3 Communications, Inc. (NON) 165,566,559
4,573,600 McLeod, Inc. Class A 314,435,000
7,123,400 Metromedia Fiber Network, Inc. Class A (NON) 482,165,138
4,576,190 NEXTLINK Communications, Inc. Class A (NON) 386,116,031
2,213,050 NTL, Inc. (NON) 278,429,353
342,100 NorthPoint Communications Group, Inc. (NON) 10,712,006
627,600 Pinnacle Holdings, Inc. (NON) 26,633,775
180,000 SBA Communications Corp. (NON) 5,456,250
2,732,900 Sprint PCS (NON) 300,790,000
175,400 TeleCorp PCS, Inc. (NON) 7,553,163
2,811,000 Vodafone AirTouch PLC (United Kingdom) 157,416,000
98,400 Williams Communications Group, Inc. (NON) 3,702,300
1,160,000 WinStar Communications. Inc. (NON) 82,142,500
---------------
3,266,445,152
Transportation (0.1%)
- --------------------------------------------------------------------------------------------------------------------------
600,000 Ryanair Holdings, PLC ADR (Ireland) (NON) 40,875,000
---------------
Total Common Stocks (cost $22,736,880,981) $39,427,935,374
SHORT-TERM INVESTMENTS (2.0%) (a)
PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------------------------------------------------------------
$50,000,000 Corporate Receivables Co. for an effective yield of 5.71%,
February 23, 2000 $ 49,825,528
50,000,000 Eureka Securitization, Inc. for an effective yield of 5.67%,
February 16, 2000 49,881,875
44,000,000 Falcon Asset Securities Corp. for an effective yield of 5.68%,
February 17, 2000 43,888,924
50,000,000 Federal Home Loan Mortgage Corp. for an effective yield of
5.53%, February 9, 2000 49,938,556
50,000,000 General Electric Capital Corp. for an effective yield of 5.65%,
February 18, 2000 49,866,597
50,000,000 Goldman Sachs Group for an effective yield of 6.00%,
February 2, 2000 49,992,153
50,000,000 Preferred Receivables Fund corp. for an effective yield of
5.74%, March 6, 2000 49,728,944
50,000,000 Sheffield Receivables Corp. for an effective yield of 5.70%,
February 18, 2000 49,865,417
69,000,000 Sigma Finance, Inc. for an effective yield of 5.67%,
February 15, 2000 68,847,855
75,000,000 Windmill Funding Corp. for an effective yield of 5.71%,
February 22, 2000 74,750,187
169,161,000 Interest in $500,000,000 joint repurchase agreement dated
January 31, 2000 with Morgan Stanley & Co., Inc. due
February 1, 2000 with respect to various U.S. Treasury
obligations -- maturity value of $169,187,690 for an
effective yield of 5.68% 169,161,000
107,699,000 Interest in $568,126,000 joint repurchase agreement dated
January 31, 2000 with S.B.C. Warburg, Inc. due
February 1, 2000 with respect to various U.S. Treasury
obligations -- maturity value of $107,716,052 for an
effective yield of 5.70% 107,699,000
---------------
Total Short-Term Investments (cost $813,446,036) $ 813,446,036
- --------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $23,550,327,017) (b) $40,241,381,410
- --------------------------------------------------------------------------------------------------------------------------
(a) Percentages indicated are based on net assets of $40,068,384,522.
(b) The aggregate identified cost on a tax basis is $23,620,077,589, resulting in gross unrealized appreciation and
depreciation of $17,560,580,313 and $939,276,492, respectively, or net unrealized appreciation of $16,621,303,821.
(NON) Non-income-producing security.
(AFF) Affiliated Companies (Note 5).
144A after the name of a security represents those exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional
buyers.
- -------------------------------------------------------------------------------
Forward Currency Contracts to Sell at January 31, 2000
Market Aggregate Face Delivery Unrealized
Value Value Date Appreciation
- -------------------------------------------------------------------------------
Japanese Yen $18,508,862 $18,768,475 6/20/96 $259,613
- -------------------------------------------------------------------------------
Futures Contracts Outstanding at January 31, 2000
Aggregate Face Expiration Unrealized
Total Value Value Date Appreciation
- -------------------------------------------------------------------------------
S&P 500 Index (Long) $47,634,000 $46,808,784 Mar-00 $825,216
- -------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of assets and liabilities
January 31, 2000 (Unaudited)
<S> <C>
Assets
- -----------------------------------------------------------------------------------------------
Investments in securities, at value
(identified cost $23,550,327,017) (Note 1) $40,241,381,410
- -----------------------------------------------------------------------------------------------
Cash 151
- -----------------------------------------------------------------------------------------------
Foreign currency (cost $4,213) 4,049
- -----------------------------------------------------------------------------------------------
Dividends, interest and other receivables 4,474,462
- -----------------------------------------------------------------------------------------------
Receivable for shares of the fund sold 121,520,790
- -----------------------------------------------------------------------------------------------
Receivable for securities sold 159,953,020
- -----------------------------------------------------------------------------------------------
Receivable for variation margin 1,173,000
- -----------------------------------------------------------------------------------------------
Receivable for open forward currency contracts 259,613
- -----------------------------------------------------------------------------------------------
Total assets 40,528,766,495
Liabilities
- -----------------------------------------------------------------------------------------------
Payable for securities purchased 318,557,834
- -----------------------------------------------------------------------------------------------
Payable for shares of the fund repurchased 77,136,302
- -----------------------------------------------------------------------------------------------
Payable for compensation of Manager (Note 2) 42,031,361
- -----------------------------------------------------------------------------------------------
Payable for investor servicing and custodian fees (Note 2) 3,678,340
- -----------------------------------------------------------------------------------------------
Payable for compensation of Trustees (Note 2) 460,962
- -----------------------------------------------------------------------------------------------
Payable for administrative services (Note 2) 5,572
- -----------------------------------------------------------------------------------------------
Payable for distribution fees (Note 2) 15,291,637
- -----------------------------------------------------------------------------------------------
Payable for closed forward currency contracts 1,403,074
- -----------------------------------------------------------------------------------------------
Other accrued expenses 1,816,891
- -----------------------------------------------------------------------------------------------
Total liabilities 460,381,973
- -----------------------------------------------------------------------------------------------
Net assets $40,068,384,522
Represented by
- -----------------------------------------------------------------------------------------------
Paid-in capital (Notes 1 and 4) $21,864,387,117
- -----------------------------------------------------------------------------------------------
Accumulated net investment loss (Note 1) (100,942,849)
- -----------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and
foreign currency transactions (Note 1) 1,612,838,883
- -----------------------------------------------------------------------------------------------
Net unrealized appreciation of investments and
assets and liabilities in foreign currencies 16,692,101,371
- -----------------------------------------------------------------------------------------------
Total -- Representing net assets applicable to
capital shares outstanding $40,068,384,522
Computation of net asset value and offering price
- -----------------------------------------------------------------------------------------------
Net asset value and redemption price per class A share
($24,061,709,897 divided by 801,568,846 shares) $30.02
- -----------------------------------------------------------------------------------------------
Offering price per class A share (100/94.25 of $30.02)* $31.85
- -----------------------------------------------------------------------------------------------
Net asset value and offering price per class B share
($11,488,866,432 divided by 416,234,922 shares)** $27.60
- -----------------------------------------------------------------------------------------------
Net asset value and offering price per class C share
($67,797,357 divided by 2,266,164 shares)** $29.92
- -----------------------------------------------------------------------------------------------
Net asset value and redemption price per class M share
($553,717,545 divided by 19,038,393 shares) $29.08
- -----------------------------------------------------------------------------------------------
Offering price per class M share (100/96.50 of $29.08)* $30.13
- -----------------------------------------------------------------------------------------------
Net asset value, offering price and redemption price per class Y share
($3,896,293,291 divided by 127,113,685 shares) $30.65
- -----------------------------------------------------------------------------------------------
* On single retail sales of less than $50,000. On sales of $50,000 or more and on group
sales, the offering price is reduced.
** Redemption price per share is equal to net asset value less any applicable contingent
sales charge.
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of operations
Six months ended January 31, 2000 (Unaudited)
<S> <C>
Investment income:
- -----------------------------------------------------------------------------------------------
Dividends (net of foreign tax of $158,506) (including dividend
income of $754,903 from investments in affiliated issuers) (Note 5) $ 55,207,350
- -----------------------------------------------------------------------------------------------
Interest 17,595,599
- -----------------------------------------------------------------------------------------------
Total investment income 72,802,949
Expenses:
- -----------------------------------------------------------------------------------------------
Compensation of Manager (Note 2) 75,589,511
- -----------------------------------------------------------------------------------------------
Investor servicing and custodian fees (Note 2) 21,653,383
- -----------------------------------------------------------------------------------------------
Compensation of Trustees (Note 2) 145,726
- -----------------------------------------------------------------------------------------------
Administrative services (Note 2) 33,535
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class A (Note 2) 24,808,354
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class B (Note 2) 48,362,235
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class C (Note 2) 117,336
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class M (Note 2) 1,698,449
- -----------------------------------------------------------------------------------------------
Reports to shareholders 231,508
- -----------------------------------------------------------------------------------------------
Registration fees 1,230,405
- -----------------------------------------------------------------------------------------------
Auditing 67,631
- -----------------------------------------------------------------------------------------------
Legal 88,853
- -----------------------------------------------------------------------------------------------
Postage 1,282,123
- -----------------------------------------------------------------------------------------------
Other 1,800,292
- -----------------------------------------------------------------------------------------------
Total expenses 177,109,341
- -----------------------------------------------------------------------------------------------
Expense reduction (Note 2) (2,843,146)
- -----------------------------------------------------------------------------------------------
Net expenses 174,266,195
- -----------------------------------------------------------------------------------------------
Net investment loss (101,463,246)
- -----------------------------------------------------------------------------------------------
Net realized gain on investments (Notes 1, 3 and 5) (including realized
gain of $1,848,069 on sales of investments in affiliated issuers) 2,417,150,824
- -----------------------------------------------------------------------------------------------
Net realized gain on futures contracts (Notes 1 and 3) 40,431,847
- -----------------------------------------------------------------------------------------------
Net realized loss on foreign currency transactions (Note 1) (2,041,531)
- -----------------------------------------------------------------------------------------------
Net unrealized appreciation of assets and liabilities in
foreign currencies during the period 1,543,034
- -----------------------------------------------------------------------------------------------
Net unrealized appreciation of investments and futures during the period 8,125,841,263
- -----------------------------------------------------------------------------------------------
Net gain on investments 10,582,925,437
- -----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $10,481,462,191
- -----------------------------------------------------------------------------------------------
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
---------- --------
2000* 1999
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase in net assets
- ------------------------------------------------------------------------------------------------------------------
Operations:
- ------------------------------------------------------------------------------------------------------------------
Net investment loss $ (101,463,246) $ (116,710,236)
- ------------------------------------------------------------------------------------------------------------------
Net realized gain on investments and
foreign currency transactions 2,455,541,140 3,128,249,015
- ------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments and
assets and liabilities in foreign currencies 8,127,384,297 2,078,777,713
- ------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 10,481,462,191 5,090,316,492
- ------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
- ------------------------------------------------------------------------------------------------------------------
From net realized gain on investments
Class A (2,110,408,905) (1,042,857,172)
- ------------------------------------------------------------------------------------------------------------------
Class B (1,110,093,904) (569,436,634)
- ------------------------------------------------------------------------------------------------------------------
Class C (3,378,753) --
- ------------------------------------------------------------------------------------------------------------------
Class M (49,685,399) (25,276,938)
- ------------------------------------------------------------------------------------------------------------------
Class Y (332,630,167) (106,713,548)
- ------------------------------------------------------------------------------------------------------------------
Increase from capital share transactions (Note 4) 4,781,485,612 2,148,949,675
- ------------------------------------------------------------------------------------------------------------------
Total increase in net assets 11,656,750,675 5,494,981,875
Net assets
- ------------------------------------------------------------------------------------------------------------------
Beginning of period 28,411,633,847 22,916,651,972
- ------------------------------------------------------------------------------------------------------------------
End of period (including accumulated net investment loss
and undistributed net investment income of $100,942,849
and $520,397, respectively) $40,068,384,522 $28,411,633,847
- ------------------------------------------------------------------------------------------------------------------
* 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
- ------------------------------------------------------------------------------------------------------------------------------------
2000 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $24.25 $21.36 $19.49 $15.73 $14.42 $11.19
- ------------------------------------------------------------------------------------------------------------------------------------
Investment operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (.06)(c) (.05)(c) (.04)(c) --(c) (.02)(c) .02
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 8.81 4.53 3.12 4.85 2.19 3.72
- ------------------------------------------------------------------------------------------------------------------------------------
Total from
investment operations 8.75 4.48 3.08 4.85 2.17 3.74
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions:
- ------------------------------------------------------------------------------------------------------------------------------------
From net realized gain
on investments (2.98) (1.59) (1.21) (1.09) (.86) (.51)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (2.98) (1.59) (1.21) (1.09) (.86) (.51)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $30.02 $24.25 $21.36 $19.49 $15.73 $14.42
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
- ------------------------------------------------------------------------------------------------------------------------------------
Total return at
net asset value (%)(a) 36.85* 22.40 16.83 32.22 15.49 34.72
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $24,061,710 $17,180,288 $13,854,611 $11,158,273 $7,332,248 $4,895,180
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(b) .44* .90 .96 1.02 1.03 1.07
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets (%) (.21)* (.25) (.20) -- (.10) .17
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 38.72* 85.05 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 B
- ------------------------------------------------------------------------------------------------------------------------------------
Six months
ended
Per-share January 31
operating performance (Unaudited) Year ended July 31
- ------------------------------------------------------------------------------------------------------------------------------------
2000 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $22.57 $20.14 $18.57 $15.15 $14.01 $10.97
- ------------------------------------------------------------------------------------------------------------------------------------
Investment operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (.15)(c) (.21)(c) (.18)(c) (.12)(c) (.13)(c) (.06)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 8.16 4.23 2.96 4.63 2.13 3.61
- ------------------------------------------------------------------------------------------------------------------------------------
Total from
investment operations 8.01 4.02 2.78 4.51 2.00 3.55
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions:
- ------------------------------------------------------------------------------------------------------------------------------------
From net realized gain
on investments (2.98) (1.59) (1.21) (1.09) (.86) (.51)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (2.98) (1.59) (1.21) (1.09) (.86) (.51)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $27.60 $22.57 $20.14 $18.57 $15.15 $14.01
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
- ------------------------------------------------------------------------------------------------------------------------------------
Total return at
net asset value (%)(a) 36.30* 21.43 16.02 31.17 14.70 33.65
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $11,488,866 $8,433,131 $7,263,280 $5,664,375 $3,405,318 $1,870,370
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(b) .81* 1.65 1.71 1.77 1.78 1.82
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets (%) (.58)* (1.00) (.95) (.75) (.85) (.58)
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 38.72* 85.05 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 C
- ------------------------------------------------------------------------------------------------------------------------------------
Six months
ended For the period
Per-share January 31 July 26, 1999+
operating performance (Unaudited) to July 31
- ------------------------------------------------------------------------------------------------------------------------------------
2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value,
beginning of period $24.25 $24.64
- ------------------------------------------------------------------------------------------------------------------------------------
Investment operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (.16)(c) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 8.81 (.39)
- ------------------------------------------------------------------------------------------------------------------------------------
Total from
investment operations 8.65 (.39)
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions:
- ------------------------------------------------------------------------------------------------------------------------------------
From net realized gain
on investments (2.98) --
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (2.98) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $29.92 $24.25
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
- ------------------------------------------------------------------------------------------------------------------------------------
Total return at
net asset value (%)(a) 36.42* (1.58)*
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $67,797 $822
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(b) .81* .03*
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets (%) (.59)* (.02)*
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 38.72* 85.05
- ------------------------------------------------------------------------------------------------------------------------------------
+ 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
- ------------------------------------------------------------------------------------------------------------------------------------
2000 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $23.61 $20.93 $19.22 $15.60 $14.37 $11.79
- ------------------------------------------------------------------------------------------------------------------------------------
Investment operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (.12)(c) (.16)(c) (.14)(c) (.08)(c) (.09)(c) (.01)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 8.57 4.43 3.06 4.79 2.18 3.10
- ------------------------------------------------------------------------------------------------------------------------------------
Total from
investment operations 8.45 4.27 2.92 4.71 2.09 3.09
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions:
- ------------------------------------------------------------------------------------------------------------------------------------
From net realized gain
on investments (2.98) (1.59) (1.21) (1.09) (.86) (.51)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (2.98) (1.59) (1.21) (1.09) (.86) (.51)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $29.08 $23.61 $20.93 $19.22 $15.60 $14.37
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
- ------------------------------------------------------------------------------------------------------------------------------------
Total return at
net asset value (%)(a) 36.57* 21.83 16.21 31.57 14.97 27.42*
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $553,718 $390,975 $322,277 $208,656 $87,782 $19,004
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(b) .69* 1.40 1.46 1.52 1.50 1.06*
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets (%) (.46)* (.75) (.69) (.50) (.57) (.24)*
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 38.72* 85.05 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
Per-share January 31
operating performance (Unaudited) Year ended July 31
- ------------------------------------------------------------------------------------------------------------------------------------
2000 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $24.69 $21.66 $19.70 $15.85 $14.48 $11.22
- ------------------------------------------------------------------------------------------------------------------------------------
Investment operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (.02)(c) --(c) .01(c) .04(c) .02(c) .03
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 8.96 4.62 3.16 4.90 2.21 3.74
- ------------------------------------------------------------------------------------------------------------------------------------
Total from
investment operations 8.94 4.62 3.17 4.94 2.23 3.77
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions:
- ------------------------------------------------------------------------------------------------------------------------------------
From net realized gain
on investments (2.98) (1.59) (1.21) (1.09) (.86) (.51)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (2.98) (1.59) (1.21) (1.09) (.86) (.51)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $30.65 $24.69 $21.66 $19.70 $15.85 $14.48
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
- ------------------------------------------------------------------------------------------------------------------------------------
Total return at
net asset value (%)(a) 36.97* 22.75 17.12 32.56 15.85 34.90
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $3,896,293 $2,406,418 $1,476,485 $1,061,087 $709,595 $351,817
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(b) .31* .65 .71 .77 .77 .83
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets (%) (.08)* -- .06 .25 .15 .39
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 38.72* 85.05 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>
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 C, 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 C shares are subject to the same fees and expenses as
class B shares, except that class C shares have a one year 1.00%
contingent deferred sales charge and do not convert to class A shares.
Class M shares are sold with a maximum front end sales charge of 3.50% and
pay an ongoing distribution fee that is higher than class A shares but
lower than class B and class C shares. Class Y shares, which are sold at
net asset value, are generally subject to the same expenses as class A,
class B, class C, 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
of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period.
Actual results could differ from those estimates.
A) Security valuation Investments for which market quotations are readily
available are stated at market value, which is determined using the last
reported sales price on its principal exchange, or if no sales are
reported -- as in the case of some securities traded over-the-counter --
the last reported bid price. Short-term investments having remaining
maturities of 60 days or less are stated at amortized cost, which
approximates market value. Other investments, including restricted
securities, are stated at fair value following procedures approved by the
Trustees.
B) Joint trading account Pursuant to an exemptive order issued by the
Securities and Exchange Commission, the fund may transfer uninvested cash
balances into a joint trading account along with the cash of other
registered investment companies and certain other accounts managed by
Putnam Management. These balances may be invested in one or more
repurchase agreements and/or short-term money market instruments.
C) Repurchase agreements The fund, or any joint trading account, through
its custodian, receives delivery of the underlying securities, the market
value of which at the time of purchase is required to be in an amount at
least equal to the resale price, including accrued interest. Collateral
for certain tri-party repurchase agreements is held at the counterparty's
custodian in a segregated account for the benefit of the fund and the
counterparty. Putnam Management is responsible for determining that the
value of these underlying securities is at all times at least equal to the
resale price, including accrued interest.
D) Security transactions and related investment income Security
transactions are accounted for on the trade date (date the order to buy or
sell is executed). Gains or losses on securities sold are determined on
the identified cost basis. Interest income is recorded on the accrual
basis. Dividend income is recorded on the ex-dividend date except that
certain dividends from foreign securities are recorded as soon as the fund
is informed of the ex-dividend date.
E) 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. Investments in foreign securities involve
certain risks, including those related to economic instability,
unfavorable political developments, and currency fluctuations, not present
with domestic investments.
F) Forward currency contracts The fund may engage in forward currency
contracts, which are agreements between two parties to buy and sell
currencies at a set price on a future date, to protect against a decline
in value relative to the U.S. dollar of the currencies in which its
portfolio securities are denominated or quoted (or an increase in the
value of a currency in which securities a fund intends to buy are
denominated, when a fund holds cash reserves and short-term investments).
The U.S. dollar value of forward currency contracts is determined using
current forward currency exchange rates supplied by a quotation service.
The market value of the contract will fluctuate with changes in currency
exchange rates. The contract is "marked to market" daily and the change in
market value is recorded as an unrealized gain or loss. When the contract
is closed, the fund records a realized gain or loss equal to the
difference between the value of the contract at the time it was opened and
the value at the time it was closed. The fund could be exposed to risk if
the value of the currency changes unfavorably, if the counterparties to
the contracts are unable to meet the terms of their contracts or if the
fund is unable to enter into a closing position.
G) Futures and options contracts The fund may use futures and options
contracts to hedge against changes in the values of securities the fund
owns or expects to purchase. The fund may also write options on securities
it owns or in which it may invest to increase its current returns.
The potential risk to the fund is that the change in value of futures and
options contracts may not correspond to the change in value of the hedged
instruments. In addition, losses may arise from changes in the value of
the underlying instruments, if there is an illiquid secondary market for
the contracts, or if the counterparty to the contract is unable to
perform. When the contract is closed, the fund records a realized gain or
loss equal to the difference between the value of the contract at the time
it was opened and the value at the time it was closed. Realized gains and
losses on purchased options are included in realized gains and losses on
investment securities.
Futures contracts are valued at the quoted daily settlement prices
established by the exchange on which they trade. Exchange traded options
are valued at the last sale price, or if no sales are reported, the last
bid price for purchased options and the last ask price for written
options. Options traded over-the-counter are valued using prices supplied
by dealers.
H) 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, 2000, the fund had no borrowings against the line of
credit.
I) 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.
J) 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 for
the quarter. Such fee is based on the following annual rates: 0.70% of the
first $500 million of average net assets, 0.60% of the next $500 million,
0.55% of the next $500 million, 0.50% of the next $5 billion, 0.475% of
the next $5 billion, 0.455% of the next $5 billion, 0.44% of the next $5
billion, 0.43% of the next $5 billion, 0.42% of the next $5 billion, 0.41%
of the next $5 billion, 0.40% of the next $5 billion, and 0.39%
thereafter.
The fund reimburses Putnam Management an allocated amount for the
compensation and related expenses of certain officers of the fund and
their staff who provide administrative services to the fund. The aggregate
amount of all such reimbursements is determined annually by the Trustees.
Custodial functions for the fund's assets are provided by Putnam Fiduciary
Trust Company (PFTC), a subsidiary of Putnam Investments, Inc. Investor
servicing agent functions are provided by Putnam Investor Services, a
division of PFTC.
For the six months ended January 31, 2000, fund expenses were reduced by
$2,843,146 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 $10,168
has been allocated to the fund, and an additional fee for each Trustees
meeting attended. Trustees receive additional fees for attendance at
certain committee meetings.
The fund has adopted a Trustee Fee Deferral Plan (the "Deferral Plan")
which allows the Trustees to defer the receipt of all or a portion of
Trustees Fees payable on or after July 1, 1995. The deferred fees remain
invested in certain Putnam funds until distribution in accordance with the
Deferral Plan.
The fund has adopted an unfunded noncontributory defined benefit pension
plan (the "Pension Plan") covering all Trustees of the fund who have
served as a Trustee for at least five years. Benefits under the Pension
Plan are equal to 50% of the Trustee's average total retainer and meeting
fees for the three years preceding retirement. Pension expense for the
fund is included in Compensation of Trustees in the Statement of
operations. Accrued pension liability is included in Payable for
compensation of Trustees in the Statement of assets and liabilities.
The fund has adopted distribution plans (the "Plans") with respect to its
class A, class B, class C and class M shares pursuant to Rule 12b-1 under
the Investment Company Act of 1940. The purpose of the Plans is to
compensate Putnam Mutual Funds Corp., a wholly-owned subsidiary of Putnam
Investments Inc., for services provided and expenses incurred by it in
distributing shares of the fund. The Plans provide for payments by the
fund to Putnam Mutual Funds Corp. at an annual rate up to 0.35%, 1.00%,
1.00% and 1.00% of the average net assets attributable to class A, class
B, class C and class M shares, respectively. The Trustees have approved
payment by the fund to an annual rate of 0.25%, 1.00%, 1.00% and 0.75% of
the average net assets attributable to class A, class B, class C and class
M shares, respectively.
For the six months ended January 31, 2000, Putnam Mutual Funds Corp.,
acting as underwriter received net commissions of $3,377,479 and $61,550
from the sale of class A and class M shares, respectively, and received
$4,433,132 and $2,821 in contingent deferred sales charges from
redemptions of class B and class C shares, respectively. A deferred sales
charge of up to 1% is assessed on certain redemptions of class A shares.
For the six months ended January 31, 2000, Putnam Mutual Funds Corp.,
acting as underwriter received $38,784 on class A redemptions.
Note 3
Purchase and sales of securities
During the six months ended January 31, 2000, cost of purchases and
proceeds from sales of investment securities other than short-term
investments aggregated $13,698,432,153 and $12,337,847,275, respectively.
There were no purchases and sales of U.S. government obligations.
Note 4
Capital shares
At January 31, 2000, there was an unlimited number of shares of beneficial
interest authorized. Transactions in capital shares were as follows:
Six months ended January 31, 2000
- -----------------------------------------------------------------------------
Class A Shares Amount
- -----------------------------------------------------------------------------
Shares sold 109,776,542 $3,052,863,830
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 71,663,908 2,025,935,845
- -----------------------------------------------------------------------------
181,440,450 5,078,799,675
Shares
repurchased (88,250,193) (2,355,226,704)
- -----------------------------------------------------------------------------
Net increase 93,190,257 $2,723,572,971
- -----------------------------------------------------------------------------
Year ended July 31, 1999
- -----------------------------------------------------------------------------
Class A Shares Amount
- -----------------------------------------------------------------------------
Shares sold 200,358,574 $4,408,201,255
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 49,587,295 1,006,126,012
- -----------------------------------------------------------------------------
249,945,869 5,414,327,267
Shares
repurchased (190,131,808) (4,190,827,089)
- -----------------------------------------------------------------------------
Net increase 59,814,061 $1,223,500,178
- -----------------------------------------------------------------------------
Six months ended January 31, 2000
- -----------------------------------------------------------------------------
Class B Shares Amount
- -----------------------------------------------------------------------------
Shares sold 49,077,074 $1,257,511,155
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 39,670,601 1,032,228,634
- -----------------------------------------------------------------------------
88,747,675 2,289,739,789
Shares
repurchased (46,083,417) (1,171,007,592)
- -----------------------------------------------------------------------------
Net increase 42,664,258 $1,118,732,197
- -----------------------------------------------------------------------------
Year ended July 31, 1999
- -----------------------------------------------------------------------------
Class B Shares Amount
- -----------------------------------------------------------------------------
Shares sold 80,109,234 $1,644,300,567
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 27,943,081 530,078,393
- -----------------------------------------------------------------------------
108,052,315 2,174,378,960
Shares
repurchased (95,145,441) (1,953,712,771)
- -----------------------------------------------------------------------------
Net increase 12,906,874 $ 220,666,189
- -----------------------------------------------------------------------------
Six months ended January 31, 2000
- -----------------------------------------------------------------------------
Class C Shares Amount
- -----------------------------------------------------------------------------
Shares sold 2,181,181 $61,534,152
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 105,852 2,985,031
- -----------------------------------------------------------------------------
2,287,033 64,519,183
Shares
repurchased (54,760) (1,581,444)
- -----------------------------------------------------------------------------
Net increase 2,232,273 $62,937,739
- -----------------------------------------------------------------------------
For the period July 26, 1999
(commencement of operations)
to July 31, 1999
- -----------------------------------------------------------------------------
Class C Shares Amount
- -----------------------------------------------------------------------------
Shares sold 33,891 $829,273
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions -- --
- -----------------------------------------------------------------------------
33,891 829,273
Shares
repurchased -- --
- -----------------------------------------------------------------------------
Net increase 33,891 $829,273
- -----------------------------------------------------------------------------
Six months ended January 31, 2000
- -----------------------------------------------------------------------------
Class M Shares Amount
- -----------------------------------------------------------------------------
Shares sold 3,655,817 $98,594,387
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 1,758,766 48,189,992
- -----------------------------------------------------------------------------
5,414,583 146,784,379
Shares
repurchased (2,935,443) (77,015,313)
- -----------------------------------------------------------------------------
Net increase 2,479,140 $69,769,066
- -----------------------------------------------------------------------------
Year ended July 31, 1999
- -----------------------------------------------------------------------------
Class M Shares Amount
- -----------------------------------------------------------------------------
Shares sold 6,906,639 $148,886,198
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 1,234,352 24,453,377
- -----------------------------------------------------------------------------
8,140,991 173,339,575
Shares
repurchased (6,976,351) (150,450,227)
- -----------------------------------------------------------------------------
Net increase 1,164,640 $ 22,889,348
- -----------------------------------------------------------------------------
Six months ended January 31, 2000
- -----------------------------------------------------------------------------
Class Y Shares Amount
- -----------------------------------------------------------------------------
Shares sold 32,876,195 $888,928,254
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 11,532,024 332,630,167
- -----------------------------------------------------------------------------
44,408,219 1,221,558,421
Shares
repurchased (14,775,697) (415,084,782)
- -----------------------------------------------------------------------------
Net increase 29,632,522 $806,473,639
- -----------------------------------------------------------------------------
Year ended July 31, 1999
- -----------------------------------------------------------------------------
Class Y Shares Amount
- -----------------------------------------------------------------------------
Shares sold 45,348,130 $1,048,260,384
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 5,176,001 106,713,548
- -----------------------------------------------------------------------------
50,524,131 1,154,973,932
Shares
repurchased (21,197,444) (473,909,245)
- -----------------------------------------------------------------------------
Net increase 29,326,687 $ 681,064,687
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
Note 5
Transactions with Affiliated Issuers
Transactions during the period 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
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Name of affiliate
- -------------------------------------------------------------------------------------------------------------------
Dollar Tree Stores $ -- $ -- $ -- $180,575,043
Electronic Arts -- -- -- --
Intuit, Inc 30,840,833 -- -- --
Linear Technology Corp. -- 20,544,307 578,571 --
Michaels Stores, Inc. -- -- -- 51,350,290
Parametric Technology Corp. 10,018,829 47,388,138 -- --
Serco Group PLC -- -- 176,332 135,607,513
Thermo Cardio Systems, Inc. -- 10,704,939 -- --
WestWood One, Inc. -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
Totals $40,859,662 $78,637,384 $754,903 $367,532,846
</TABLE>
Fund information
WEB SITE
www.putnaminv.com
INVESTMENT MANAGER
Putnam Investment Management, Inc.
One Post Office Square
Boston, MA 02109
MARKETING SERVICES
Putnam Mutual Funds Corp.
One Post Office Square
Boston, MA 02109
CUSTODIAN
Putnam Fiduciary Trust Company
LEGAL COUNSEL
Ropes & Gray
TRUSTEES
George Putnam, Chairman
William F. Pounds, Vice Chairman
John A. Hill, Vice Chairman
Jameson Adkins Baxter
Hans H. Estin
Ronald J. Jackson
Paul L. Joskow
Elizabeth T. Kennan
Lawrence J. Lasser
John H. Mullin III
Robert E. Patterson
George Putnam, III
A.J.C. Smith
W. Thomas Stephens
W. Nicholas Thorndike
OFFICERS
George Putnam
President
Charles E. Porter
Executive Vice President
Patricia C. Flaherty
Senior Vice President
John D. Hughes
Senior Vice President and Treasurer
Lawrence J. Lasser
Vice President
Gordon H. Silver
Vice President
Ian C. Ferguson
Vice President
Brett C. Browchuk
Vice President
John J. Morgan, Jr.
Vice President
Daniel L. Miller
Vice President
Robert R. Beck
Vice President and Fund Manager
Roland W. Gillis
Vice President and Fund Manager
Paul E. Marrkand
Vice President and Fund Manager
Charles H. Swanberg
Vice President and Fund Manager
Michael P. Stack
Vice President and Fund Manager
Richard A. Monaghan
Vice President
John R. Verani
Vice President
This report is for the information of shareholders of Putnam 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' Web site: www.putnaminv.com.
Shares of mutual funds are not deposits or obligations of, or guaranteed
or endorsed by, any financial institution; are not insured by the Federal
Deposit Insurance Corporation (FDIC), the Federal Reserve Board, or any
other agency; and involve risk, including the possible loss of the
principal amount invested.
[LOGO OMITTED]
PUTNAM INVESTMENTS
The Putnam Funds
One Post Office Square
Boston, Massachusetts 02109
- ---------------------
BULK RATE
U.S. POSTAGE PAID
PUTNAM
INVESTMENTS
- ---------------------
For account balances, economic forecasts, and the latest on Putnam funds, visit
www.putnaminv.com
SA016-58956 007/883/530/516 3/00
PUTNAM INVESTMENTS [SCALE LOGO OMITTED]
- ---------------------------------------------------------------------------
Putnam Voyager Fund
Supplement to Semiannual Report dated 1/31/00
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 semiannual
report.
ANNUAL RESULTS AT A GLANCE
- ---------------------------------------------------------------------------
Total return for periods ended 1/31/00 NAV
6 months 36.97%
1 year 44.52
5 years 277.79
Annual average 30.45
10 years 711.78
Annual average 23.29
Life of fund (since class A inception, 4/1/69)
(annual average) 15.49
Share value: NAV
7/31/99 $24.69
1/31/00 $30.65
- ---------------------------------------------------------------------------
Distributions: No. Income Capital gains Total
1 -- Short $0.089 Long $2.892 $2.981
- ---------------------------------------------------------------------------
Please note that past performance does not indicate future results. Returns
shown for class Y shares for periods prior to their inception are derived
from the historical performance of class A shares, adjusted to reflect the
initial sales charge currently applicable to class A shares. These returns
have not been adjusted to reflect differences in operating expenses which,
for class Y shares, are lower than the operating expenses applicable to
class A shares. All returns assume reinvestment of distributions at net
asset value. Investment return and principal value will fluctuate so your
shares, when redeemed, may be worth more or less than their original cost.
See full report for information on comparative benchmarks. If you have
questions, please consult your fund prospectus or call Putnam toll free at
1-800-752-9894.