Putnam New York Tax Exempt Money Market Fund
SEMIANNUAL REPORT
May 31, 1994
[ARTWORK]
Boston * London * Tokyo
<PAGE>
Performance highlights
"When one sector of the market performs poorly, another
sector may offset the losses. To diversify a fund portfolio,
split your holdings among domestic and international stocks
and bonds, and money market funds."
"Reducing your risk," Success (January/February 1994)
"Our strategy is to take advantage of higher interest rates.
At the same time, we will continue to follow a conservative
investment approach, maintaining the fund's superior quality
and stability."
Lindsey Callen, Portfolio Manager
Performance should always be considered in light of a fund's
investment strategy. Putnam New York Tax Exempt Money Market
Fund is designed for investors seeking current income free
from federal, state and city income tax consistent with
capital preservation, stability of principal and liquidity.
SEMIANNUAL RESULTS AT A GLANCE
<TABLE>
<S> <C>
- ------------------------------------------------------------
Total return: NAV
- ------------------------------------------------------------
Six months ended 5/31/94 (change in value during
period plus reinvested distributions) 0.80%
- ------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Capital gains(1)
Distributions: No. IncomeShort-term Long-term Total
- -------------------------------------------------------------
6 $0.008008 -- --$0.008008
- -------------------------------------------------------------
<S> <C> <C>
Taxable equivalent(3)
Current returns: NAV NAV
- -------------------------------------------------------------
(end of period)
30-day yield(2) 1.85% 3.48%
7-day yield(4) 1.76% 3.31%
- -------------------------------------------------------------
</TABLE>
Performance data represent past results.
(1) Capital gains are taxable. Investment income may be
subject to state and local taxes.
(2) Income portion of most recent distribution, annualized
and divided by NAV or POP at end of period.
(3) Assumes maximum 46.88% combined federal, New York state
and city tax rates. Results for investors subject to lower
tax rates would not be as advantageous. For some investors,
investment income may also be subject to the federal
alternative minimum tax.
(4) Based only on investment income, calculated using SEC
guidelines.
<PAGE>
From the Chairman
[Photograph of George Putnam]
(c) Karsh, Ottawa
Dear Shareholder:
The Federal Reserve Board's primary concern remains fighting
not only inflation but the fear of inflation. It is pursuing
this goal by gradually raising the short-term interest rates
under its control to slow the economy's growth to what it
regards as a sustainable pace.
The policy continues as the effects of last year's tax
increase are being keenly felt by individuals and
businesses. This confluence could result in a greater
slowing of business than many observers now expect.
Should this slowing become more obvious, the Fed will come
under growing pressure from politicians to ease up. The Fed
is not likely to yield. But the very fact that investors
think it might relent could cause some more volatility in
the bond markets in the months ahead.
Meanwhile, you can take comfort in the tax shelter provided
for the income generated by your Putnam tax-exempt fund
shares. In the following report, Fund Manager Lindsey M.
Callen explains how she is positioning your fund's portfolio
to respond to 1994's unfolding events.
Respectfully yours,
[George Putnam Signature]
George Putnam
July 20, 1994
<PAGE>
Report from the fund manager
Lindsey M. Callen
For the six months ended May 31, l994, Putnam New York Tax
Exempt Money Market Fund once again met its objectives of
providing stability and tax-free income. For investors in
the combined federal and New York state and city maximum tax
bracket of 46.88%, a taxable money market fund would have
had to yield more than 3.31% to match your fund's 7-day tax
equivalent yield at the end of the period. We encourage you
to evaluate your fund's performance on this tax-equivalent
basis.
CHANGING INVESTMENT ENVIRONMENT
During the semiannual period, your fund was managed in an
environment of strong economic growth, moderate inflation,
and increasing interest rates. After several months of
steadily declining rates, the Federal Reserve Board took
steps to curb what it perceived as the possibility of rising
inflation. Beginning in February, the Fed raised interest
rates several times. By the end of May, the federal funds
rate (the rate banks use for overnight loans to one another)
stood at 4.25%, and the discount rate (the rate the Fed
charges for loans to banks and other depositor institutions)
was at 3.5%, both up from 3.0% at the beginning of the
period.
CAPITALIZING ON HIGHER INTEREST RATES
Throughout the period, we maintained an investment strategy
that we considered flexible enough to benefit from changes
in the economy, inflation, and the direction of interest
rates. After interest rates sank to historic lows last fall,
we expected a reversal of this trend. So, early in the
period, we began positioning the fund to take advantage of
incrementally higher yields. To this end, we decreased the
average maturity of the portfolio, so the fund would not be
locked into lower-yielding securities in a rising interest
rate environment. We also increased the number of high
quality, floating-rate securities in the portfolio. Yields
on floating-rate securities are reset at fixed intervals
(weekly or monthly), so when market rates rise, your fund
benefits immediately.
LOOKING AHEAD
In general, we believe the economy will continue to
strengthen and inflation will remain at a moderate level.
While the Fed may raise rates further in an effort to keep
inflation in check, we believe rates will stay at relatively
low levels by historic standards. In the months to come, we
will continue to emphasize flexibility in our investment
decisions. We plan to keep the average maturity of the
portfolio relatively short, positioning your fund to take
advantage of any increase in interest rates. We will also
maintain our strategy of seeking the highest yields possible
by investing in high-quality floating-rate securities. In
addition, we will continue to monitor the New York fiscal
situation with an eye to protecting the fund's stability and
current tax-exempt income stream.
PERFORMANCE COMPARISONS (5/31/94)*
<TABLE>
<S> <C>
- ------------------------------------------------------------
Net return after taxes+
- ------------------------------------------------------------
Passbook savings account 1.06%
- ------------------------------------------------------------
Putnam New York Tax Exempt Money Market Fund (7-day yield)
- ------------------------------------------------------------
Class A 1.75
- ------------------------------------------------------------
Taxable money market fund 7-day yield 1.90
- ------------------------------------------------------------
3-month certificate of deposit 1.54
- ------------------------------------------------------------
</TABLE>
The principal value of money market mutual funds is
uninsured and designed to be fixed while distributions vary
daily. The principal value on passbook savings and bank CDs
are generally insured up to certain limits by state and
federal agencies. Unlike money market funds, early
withdrawals from bank CDs may be subject to substantial
penalties. Investment returns will fluctuate.
* Sources: Bank of Boston (passbook savings), Bank Rate
Monitor (3-month CDs), IBC/Donaghue's Money Fund Report
(taxable money market fund 7-day yield).
+ Assumes maximum 46.88% combined Federal, New York State
and City tax rates.
<PAGE>
Performance summary
This section provides, at a glance, information about your
fund's performance. Total return shows how the value of the
fund's shares changed over time, assuming you held the
shares through the entire period and reinvested all
distributions back into the fund. We show total return in
two ways: on a cumulative long-term basis and how the fund
might have grown each year, on average, over varying
periods.
We provide total returns for varying lengths of time ending
on May 31, 1994, the close of the fiscal period covered in
this report. To make comparisons with other investments
easier, we also provide data for periods ending on June 30,
1994, the most recent calendar quarter. Finally, we have
provided terms and definitions as they apply to your fund.
<TABLE>
<S> <C> <C> <C>
TOTAL RETURN FOR PERIODS ENDING 5/31/94
LIPPER NY MM
NAV AVG CPI
- -------------------------------------------------------------
6 months 0.80 0.92 1.17
- -------------------------------------------------------------
1 year 1.63% 1.84% 2.29%
- -------------------------------------------------------------
5 years 18.10 18.38 19.14
Annual average 3.38 3.43 3.57
- -------------------------------------------------------------
Life-of-fund 27.21 27.49 27.93
10/26/87 3.71 3.76 3.80
- -------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL RETURN FOR PERIODS ENDING 6/30/94
(most recent calendar quarter)
NAV
- -------------------------------------------------------------
1 year 1.65%
- -------------------------------------------------------------
5 years 17.74
Annual average 3.32
- -------------------------------------------------------------
Life-of-fund 27.42
Annual average 3.69
- -------------------------------------------------------------
</TABLE>
Performance data represent past results. Investment returns
and principal value will fluctuate so an investor's shares,
when sold, may be worth more or less than their original
cost. Fund performance data do not take into account any
adjustment for taxes payable on reinvested distributions.
<PAGE>
TERMS AND DEFINITIONS
Net asset value (NAV) is the value of all fund assets, minus
liabilities, divided by the number of outstanding shares. It
does not include any initial or contingent deferred sales
charges.
COMPARATIVE BENCH
Lipper New York Tax Exempt Money Market Fund Average is an
arithmetic average of the total return of all New York tax
exempt money market mutual funds tracked by the Lipper
Analytical Services. Lipper is an independent rating
organization for the mutual fund industry. Lipper rankings
vary for other periods. The fund's holdings do not match
those in the Lipper Average.
Consumer Price Index is a commonly used measure of
inflation. It does not represent an investment return.
<PAGE>
Portfolio of investments owned
May 31, 1994 (Unaudited)
<TABLE>
MUNICIPAL BONDS AND NOTES (82.8%) (a)
PRINCIPAL AMOUNT RATINGS (b) VALUE
<S> <C> <C> <C>
- -------------------------------------------------------------
New York (82.8%)
$2,000,000 Buffalo, Rev. Anticipation Notes
(Industrial Bank of Japan LOC)
Ser. A, 3s, 7/14/94 MIG1$2,001,544
2,000,000 Erie Cnty., Rev. Anticipation Notes
(Mitsubishi Bank, Ltd. LOC) 3.3s, 8/5/94 MIG1
2,000,698
2,000,000 Great Neck, Union Free School Dist.
Tax Anticipation Notes 3 1/4s, 6/30/94AAA2,000,896
1,000,000 Metropolitan Transit Authority,
Commuter Facilities Rfdg. Rev. Bonds
Ser. A, 11 1/4s, 7/1/14 AAA 1,026,828
2,295,000 Monroe Cnty., Indl. Dev. Agcy.
Variable Rate Demand Notes (VRDN)
(Columbia/Sussex), 5s, 11/1/14 AAA 2,295,000
2,000,000 Nassau Cnty., Tax Anticipation Notes
Ser. B, 3s, 12/29/94 MIG1 2,005,680
2,000,000 North Hempstead, Solid Waste Mgmt.
Auth. VRDN (National Westminster
Bank PLC LOC), Ser. A, 2 3/4s,
2/1/12 VMIG1 2,000,000
2,000,000 NY City, Rev. Anticipation Notes
Ser. B, 3 1/2s, 6/30/94 MIG1 2,001,198
NY City, General Obligation (G.O.) VRDN
2,500,000 2.85s, 3/15/97 VMIG1 2,500,000
3,300,000 Financial Guaranty Insurance Corp.
(FGIC), 2.55s, 10/01/22 VMIG1 3,300,000
820,000 NY City, Hsg. Dev. Corp. Mtge. VRDN
(Carnegie Park Project), 3.6s,
12/1/16 VMIG2 820,000
NY City, Indl. Dev. Agcy. VRDN
1,000,000 (Bank Of New York LOC),
CAB, 4 1/2s, 12/1/01 P-1 1,000,000
1,700,000 (Banque Indosuez LOC)(JFK Project),
2.85s, 12/1/15 A-1 1,700,000
2,000,000 (Banque Indosuez LOC)(La Guardia Assn.
Project), 2.85s, 12/1/15 A-1 2,000,000
2,000,000 NY City, Muni. Wtr. Fin. Auth. Wtr. &
Swr. Syst. VRDN (FGIC), Ser. G, 2.95s,
6/15/24 A-1+ 2,000,000
NY State Energy Research & Dev. Auth. Poll.
Control VRDN
2,000,000 (NY State Elec. & Gas Corp.),
Ser. C, 2.6s, 7/15/15 A-1+ 2,000,000
2,000,000 (Deutsche Bank LOC) (LILCO Project),
Ser. B, 3s, 3/1/16 VMIG1 2,000,000
1,000,000 (Credit Suisse LOC), (Rochester Gas &
Electric Corp.), 2.85s, 10/1/14 P-1 1,000,000
3,000,000 (Toronto Dominion Bank LOC)
(Niagara Mohawk Power Project),
Ser A, 2.2s, 7/1/15 A-1+ 3,000,000
NY State Job Dev. Auth. VRDN
520,000 (Sumitomo Bank Limited),
Ser. B-1 to 6, 2.9s, 3/1/00 A-1+ 520,000
1,725,000 (Sumitomo Bank, Ltd.),
Ser. C-1 to 12, 2.9s, 3/1/00 A-1+ 1,725,000
220,000 (The Sumitomo Bank LOC),
Ser E-1 to 55, 2 3/4s, 3/1/99 A-1+ 220,000
2,000,000 NY State Med. Care Fac. Fin. Agcy.
VRDN (Chemical Bank Loc),
Ser. A, 2 3/4s, 11/1/08 VMIG1$2,000,000
2,750,000 NY State Mtge. Agency Rev. Bonds
(Homeowner Mortage) Ser. 37-A,
3s, 10/1/17 VMIG1 2,750,000
Total Municipal Bonds and Notes
$43,866,844
Total Investments (cost $43,866,844)(c)
$43,866,844
- --------------------------------------------------------------
</TABLE>
(a) Percentages indicated are based on net assets of
$52,984,859 which corresponds to a net asset per share of $
1.00.
(b) The Moody's or Standard & Poor's ratings indicated are
believed to be the most recent ratings available at May 31,
1994 for the securities listed. Ratings are generally
ascribed to securities at the time of issuance. While the
agencies may from time to time revise such ratings, they
undertake no obligation to do so, and the ratings do not
necessarily represent what the agencies would ascribe to
these securities at May 31, 1994. Securities rated by Putnam
are indicated by "P" and are not publicly rated.
Moody's Investor Service, Inc. and Standard & Poor's Corp.
are the leading independent rating agencies for debt
securities. Moody's uses the designation "Moody's Investment
Grade " or "MIG" for most short-term municipal obligations,
adding a "V" ("VMIG") for bonds with a demand or variable
feature; the designation "P" is used for tax-exempt
commercial paper. Standard & Poor's uses 'sP" for notes
maturing in three years or less, "A" for bonds with a demand
or variable feature.
Moody's Investors Service, Inc.
MIG1/VMIG1= Best quality: strong protection of cash flow,
superior liquidity and broad access to refinancing.
MIG2/VMIG2= High quality: ample protection of cash flow,
liquidity support and ability to refinance.
AAA=Capacity to pay interest and repay principal is
extremely strong.
AA=Strong capacity to pay interest and repay principal and
differs from the higher-rated issues only in small degree.
Standard & Poor's Corp.
P-1= Superior capacity for repayment
P-2= Strong capacity for repayment
SP-1= Overwhelming safety characteristics
SP-2= Strong capacity to pay principal and interest A-1+=
Overwhelming degree of credit protection
A-1= Strong degree of safety
A-2= Considered strong but lacks solid strength for timely
repayment.
(c) The aggregate identified cost on a tax basis is the
same.The rates shown on Variable Rate Demand notes (VRDN)
and Residual Interest Bonds (RIBS) are current interest
rates at May 31, 1994, which are subject to change based on
the terms of the security.
The Fund had the following industry group concentrations
greater than 10% on May31, 1994 (as a percentage of net
assets):
Energy Related 15.1%
The accompanying notes are an integral part of these
financial statements.
<PAGE>
Statement of assets and liabilities
May 31, 1994 (Unaudited)
<TABLE>
<S> <C>
Assets
- ------------------------------------------------------------
Investments in securities at amortized cost
(Note 1) $43,866,844
- ------------------------------------------------------------
Cash 3,403,033
- ------------------------------------------------------------
Interest and other receivables 352,046
- ------------------------------------------------------------
Receivable for shares of the fund sold 8,972,429
- ------------------------------------------------------------
Total assets 56,594,352
- ------------------------------------------------------------
Liabilities
- ------------------------------------------------------------
Distributions payable to shareholders $49,932
- ------------------------------------------------------------
Payable for shares of the fund repurchased 188,291
- ------------------------------------------------------------
Payable for compensation of Manager (Note 2) 58,674
- ------------------------------------------------------------
Payable for securities purchased 3,307,730
- ------------------------------------------------------------
Other accrued expenses 4,866
- ------------------------------------------------------------
Total liabilities 3,609,493
- ------------------------------------------------------------
Net assets $52,984,859
- ------------------------------------------------------------
Represented by
- ------------------------------------------------------------
Paid-in capital (Note 4) $52,984,859
- ------------------------------------------------------------
Net asset value, offering and redemption price
per share ($52,984,859 divided by 52,984,859 shares) $1.00
- ------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these
financial statements.
<PAGE>
Statement of operations
<TABLE>
<S> <C> <C>
Six months ended May 31, 1994 (Unaudited)
- ------------------------------------------------------------
- ----------
Tax exempt interest income $586,318
- ------------------------------------------------------------
- ----------
Expenses:
- ------------------------------------------------------------
- ----------
Compensation of Manager (Note 2) $114,441
- ------------------------------------------------------------
- ----------
Compensation of Trustees (Note 2) 2,577
- ------------------------------------------------------------
- ----------
Reports to shareholders 17,425
- ------------------------------------------------------------
- ----------
Postage 14,019
- ------------------------------------------------------------
- ----------
Registration fees 3,627
- ------------------------------------------------------------
- ----------
Auditing 7,002
- ------------------------------------------------------------
- ----------
Legal 10,325
- ------------------------------------------------------------
- ----------
Administrative services (Note 2) 1,336
- ------------------------------------------------------------
- ----------
Distribution fees (Note 2) 4,186
- ------------------------------------------------------------
- ----------
Other expenses 713
- ------------------------------------------------------------
- ----------
Total expenses 175,651
- ------------------------------------------------------------
- ----------
Net investment income 410,667
- ------------------------------------------------------------
- ----------
Net increase in net assets resulting from operations
$410,667
- ------------------------------------------------------------
- ----------
</TABLE>
The accompanying notes are an integral part of these
financial statements.
<PAGE>
Statement of changes in net assets
<TABLE>
<S> <C> <C>
Six months ended Year ended
May 31 November 30
1994* 1993
- ------------------------------------------------------------
- ----------
Increase in net assets
- ------------------------------------------------------------
- ----------
Operations:
- ------------------------------------------------------------
- ----------
Net investment income $410,667 $909,000
- ------------------------------------------------------------
- ----------
Net realized gain on investments -- 4,409
- ------------------------------------------------------------
- ----------
Net increase in net assets resulting
from operations 410,667 913,409
- ------------------------------------------------------------
- ----------
Distributions to shareholders from:
- ------------------------------------------------------------
- ----------
Net investment income (410,667) (909,729)
- ------------------------------------------------------------
- ----------
Net realized gain on investments -- (3,680)
- ------------------------------------------------------------
- ----------
Increase (decrease) from capital share
transactions (Note 4) 2,511,911 (7,232,392)
- ------------------------------------------------------------
- ----------
Total increase (decrease) in net assets2,511,911(7,232,392)
- ------------------------------------------------------------
- ----------
Beginning of period 50,472,948 57,705,340
- ------------------------------------------------------------
- ----------
End of period $52,984,859 $50,472,948
- ------------------------------------------------------------
- ----------
</TABLE>
* Unaudited
The accompanying notes are an integral part of these
financial statements.
<PAGE>
Financial Highlights*
(For a share outstanding throughout the period)
<TABLE>
<S> <C> <C> <C>
Six months ended
May 31 Year Ended November 30
1994+ 1993 1992
- ------------------------------------------------------------
- ----------
Net Asset Value,
Beginning of Period $1.00 $1.00 $1.00
- ------------------------------------------------------------
- ----------
Investment Operations:
Net Investment Income .0080 .0165 .0259(a)
Net Realized Gain on Investments -- .0001 --
- ------------------------------------------------------------
- ----------
Total from Investment Operations.0080 $.0166 $.0259
Less Distributions from:
Net Investment Income (.0080) (.0165) (.0259)
Net Realized Gain on Investments -- (.0001) --
- ------------------------------------------------------------
- ----------
Total Distributions (.0080) (.0166) (.0259)
- ------------------------------------------------------------
- ----------
Net Asset Value, End of Period$1.00 $1.00 $1.000
- ------------------------------------------------------------
- ----------
Total investment return at
net asset value(%)(b) 1.60(c) 1.67 2.62
- ------------------------------------------------------------
- ----------
Net Assets, End of Period
(in thousands) $52,985 $50,473 $57,705
- ------------------------------------------------------------
- ----------
Ratio of expenses to average
net assets (%) 0.69(c) .91 .78(a)
- ------------------------------------------------------------
- ----------
Ratio of net investment income to
average net assets (%) 1.62(c) 1.69 2.59(a)
- ------------------------------------------------------------
- ----------
</TABLE>
* Financial highlights for periods through November 30, 1992
have been reclassified and data has been presented to
conform with the requirements issued by the SEC in April,
1993.
+ Unaudited.
(a) Reflects an expense limitation and, during the year
ended November 30, 1988 and the period ended November 30,
1987, a waiver of distribution fees in effect during the
period. As a result of such limitations, expenses of the
fund for the years ended November 30, 1992, 1991, 1990,
1989, 1988 and for the period ended November 30, 1987
reflect reductions of $0.0024, $0.0034, $0.0043, $0.0048,
$0.0061 and $0.0015 per share, respectively.
(b) Total investment return assumes dividend reinvestment.
(c) Annualized.
<PAGE>
Financial Highlights* (continued)
<TABLE>
<S> <C> <C> <C> <C>
<C>
(For a share outstanding throughout the period)
For the period
October 26, 19
87
(commencement
of
operations) to
Year ended November 30 November 30
- ------------------------------------------------------------
- ----------
1991 1990 1989 1988 1987
- ------------------------------------------------------------
- ----------
$1.00 $1.00 $1.00 $1.00 $1.00
- ------------------------------------------------------------
- ----------
.0399(a) .0497(a) .0530(a) .0436(a) .0041(a)
-- -- -- -- --
- ------------------------------------------------------------
- ----------
$0.399 $.0497 $.0530 $.0436 $.0041
- ------------------------------------------------------------
- ----------
(.0399) (.0497) (.0530) (.0436) (.0041)
-- -- -- -- --
- ------------------------------------------------------------
- ----------
(.0399) (.0497) (.0530) (.0436) (.0041)
$1.00 $1.00 $1.00 $1.00 $1.00
- ------------------------------------------------------------
- ----------
4.07 5.09 5.44 4.46 4.10(c)
- ------------------------------------------------------------
- ----------
$64,286 $63,671 $51,113 $34,432 $3,953
- ------------------------------------------------------------
- ----------
.80(a) .67(a) .67(a) .64(a) .51(a)(c)
- ------------------------------------------------------------
- ----------
3.96(a) 4.95(a) 5.31(a) 4.34(a) 4.66(a)(c)
- ------------------------------------------------------------
- ----------
</TABLE>
<PAGE>
Notes to financial Statements
May 31, 1994 (unaudited)
Note 1
Significant accounting policies
The fund is registered under the Investment Company Act of
1940, as amended, as a nondiversified, open-end management
investment company. The fund seeks as high a level of
current income exempt from federal, New York state and New
York city personal income taxes as Putnam Investment
Management believes is consistent with maintenance of
liquidity and stability of principal. The fund invests
primarily in a nondiversified portfolio of short-term New
York tax-exempt securities.
The following is a summary of significant accounting
policies consistently followed by the fund in the
preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles.
A) Security valuation The valuation of the fund's portfolio
instruments is determined by means of the amortized cost
method as set forth in Rule 2a-7 under the Investment
Company Act of 1940. The amortized cost of an instrument is
determined by valuing it at cost originally and thereafter
amortizing any discount or premium from its face value at a
constant rate until maturity.
B) Security transactions Security transactions are
accounted for on the trade date (date the order to buy or
sell is executed).
C) Federal income taxes It is the policy of the fund to
distribute all of its income within the prescribed time and
otherwise comply with the provisions of the Internal Revenue
Code applicable to regulated investment companies. It is
also the intention of the fund to distribute an amount
sufficient to avoid imposition of any excise tax under
Section 4982 of the Internal Revenue Code of 1986, as
amended. Therefore, no provision has been made for federal
taxes on income or capital gains on securities held and
excise tax on income and capital gains.
D) Interest income and distributions to shareholders
Interest is recorded on the accrual basis. Income dividends
(and distributions of capital gains, if any) are recorded
daily by the fund and are distributed monthly to the
shareholders.
Note 2
Management fee, administrative services, and other
transactions
Compensation of Putnam Investment Management, Inc., the
fund's Manager, a wholly-owned subsidiary of Putnam
Investments, Inc., for management and investment advisory
services is paid quarterly at an annual rate of 0.45% of the
first $500 million of average net assets, 0.35% of the next
$500 million, 0.30% of the next $500 million and 0.25% of
any amount over $1.5 billion, subject to reduction in any
year by the amount of certain brokerage commissions and fees
(less expenses) received by affiliates of the Manager on the
fund's portfolio transactions.
The fund also reimburses the
Manager 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. For the six months ended May 31, 1994, the fund
paid $1,336 for these services.
Trustees of the fund receive an annual Trustee's fee of $400
and an additional fee for each Trustees" meeting attended.
Trustees who are not interested persons of the Manager and
who serve on committees of the Trustees receive additional
fees for attendance at certain committee meetings.
Custodial functions for the fund 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.
Investor servicing and custodian fees reported in the
Statement of operations for the six months ended May 31,
1994 have been reduced by credits allowed by PFTC.
The fund has adopted a distribution plan pursuant to Rule
12b-1 under the Investment Company Act of 1940. The purpose
of the plan 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 Trustees have approved
payment by the fund to Putnam Mutual Funds Corp. at an
annual rate of 0.10% of the average net assets. For the six
months ended May 31, 1994 the fund incurred distribution
fees in the amount of $4,186.
Note 3
Purchases and sales of securities
During the six months ended May 31, 1994, purchases and
sales (including maturities) of investment securities (all
short-term obligations) aggregated $99,707,760 and
$105,800,000 respectively. In determining the net gain or
loss on securities sold, the cost of securities has been
determined on the identified cost basis.
Note 4
Capital shares
At May 31, 1994, there was an unlimited number of shares of
beneficial interest authorized. Transactions in capital
shares, at a constant net asset value of $1.00 per share,
were as follows:
<TABLE>
<S> <C> <C>
Six months ended Year ended
May 31 November 30
- ------------------------------------------------------------
- ----------
1994 1993
- ------------------------------------------------------------
- ----------
Shares sold 144,194,658 176,650,714
Shares issued in connection with
reinvestment of distributions 381,702 854,851
- ------------------------------------------------------------
- ----------
144,576,360 177,505,565
- ------------------------------------------------------------
- ----------
Shares repurchased (142,064,449)(184,737,957)
- ------------------------------------------------------------
- ----------
Net increase (decrease) 2,511,911 (7,232,392)
- ------------------------------------------------------------
- ----------
</TABLE>
<PAGE>
Our commitment to quality service
CHOOSE AWARD-WINNING SERVICE.
Putnam Investor Services has won the DALBAR Quality Tested
Service Seal every year since the award's 1990 inception.
DALBAR, an independent research firm, ran more than 10,000
tests of 38 shareholder service components. In every
category, Putnam outperformed the industry standard.
HELP YOUR INVESTMENT GROW.
Set up a systematic program for investing with as little as
$25 a month from a Putnam fund or from your checking or
savings account.*
SWITCH FUNDS EASILY.
You can move money from one account to another with the same
class of shares without a service charge. (This privilege is
subject to change or termination.)
ACCESS YOUR MONEY QUICKLY.
You can get checks sent regularly or redeem shares any
business day at the then-current net asset value, which may
be more or less than their original cost.
For details about any of these or other services, contact
your financial advisor or call the toll-free number shown
below and speak with a helpful Putnam representative.
To make an additional investment in this or any other Putnam
fund, contact your financial advisor or call our toll-free
number:
1-800-225-1581.
* Regular investing, of course, does not guarantee a profit
or protect
against a loss in a declining market. Investors should
consider their
ability to continue purchasing shares during periods of low
price levels.
<PAGE>
Fund information
INVESTMENT MANAGER
Putnam Investment
Management, Inc.
One Post Office Square
Boston, MA 02109
MARKETING SERVICES
Putnam Mutual Funds Corp.
One Post Office Square
Boston, MA 02109
CUSTODIAN
Putnam Fiduciary Trust Company
LEGAL COUNSEL
Ropes & Gray
TRUSTEES
George Putnam, Chairman
William Pounds, Vice Chairman
Jameson Adkins Baxter
Hans H. Estin
John A. Hill
Elizabeth T. Kennan
Lawrence J. Lasser
Donald S. Perkins
Robert E. Patterson
George Putnam, III
A.J.C. Smith
W. Nicholas Thorndike
OFFICERS
George Putnam President
Charles E. Porter Executive Vice President
Patricia C. Flaherty Senior Vice President
Lawrence J. Lasser Vice President
Gordon H. Silver Vice President
Gary N. Coburn Vice President
William F. McGue Vice President
Lindsey M. Callen Vice President and Fund Manager
William N. Shiebler Vice President
John R. Verani Vice President
Paul O"Neil Vice President
John D. Hughes Vice President and Treasurer
Beverly Marcus Clerk and Assistant Treasurer
This report is for the information of shareholders of Putnam
New York Tax Exempt Money Market 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 Putnam quarterly performance summary.
<PAGE>
Bulk Rate
U.S. Postage
PAID
Boston, MA
Permit No. 53749
Putnam Investments
The Putnam Funds
One Post Office Square
Boston, Massachusetts 02109
63-12991
<PAGE>
APPENDIX TO FORM N30D FILINGS TO DESCRIBE DIFFERENCES
BETWEEN PRINTED
AND EDGAR-FILED TEXTS.
(1) Rule lines for tables are omitted.
(2) Boldface and italic typefaces are displayed in normal
type.
(3) Headers (e.g. the names of the fund) and footers (e.g.
page
numbers and "The accompanying notes are an integral part of
these
financial statements") are omitted.
(4) Because the printed page breaks are not reflected,
certain tabular
and columnar headings and symbols are displayed differently
in this
filing.
(5) Bullet points and similar graphic signals are omitted.
(6) Page numbering is different.
