Putnam New York Tax Exempt Money Market Fund
ANNUAL REPORT
November 30, 1994
[LOGO]
BOSTON * LONDON * TOKYO
<PAGE>
Performance highlights
"In a difficult period for many types of investments -- a rising
interest rate environment -- Putnam New York Tax Exempt Money
Market Fund continues its conservative approach, holding
securities of superior quality and short duration, in a concerted
effort to maintain stability and a steady tax-free income
stream."
- -- Lindsey Callen, Fund 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, New York State and City income tax and consistent with
capital preservation, stability of principal, and liquidity.
FISCAL 1994 RESULTS AT A GLANCE
<TABLE><CAPTION>
<S> <C>
- -----------------------------------------------------------------
Total return
- -----------------------------------------------------------------
(change in value during period
plus reinvested distributions)
12 months ended 11/30/94 1.90%
- -----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Capital gains(1)
Long- Short-
Distributions No. Income term term Total
- -----------------------------------------------------------------
12 $0.018809 0 0 $0.018809
- -----------------------------------------------------------------
<S> <C> <C> <C>
Taxable Taxable
Current return Fund equivalent (a) equivalent (b)
- -----------------------------------------------------------------
End of period
7-day yield(2) 2.82% 5.07% 5.33%
30-day yield(3) 2.54 4.57 4.80
- -----------------------------------------------------------------
<FN>
Performance data represent past results. For performance over
longer periods, see page 7. (1) Capital gains are taxable for
federal and, in most cases, state tax purposes. For some
investors, investment income may be subject to the federal
Alternative Minimum Tax. Investment income may be subject to
state and local taxes. Taxable equivalent (a) assumes federal and
state tax of 44.36%; (b) assumes federal, state, and city rate of
47.05%. Results for investors subject to lower tax rates would
not be as advantageous. (2) Income portion of most recent
distribution, annualized and divided by NAV at end of period. (3)
Based only on investment income, calculated using SEC guidelines.
</TABLE>
<PAGE>
From the Chairman
[PHOTO]
(c) Karsh, Ottawa
Dear Shareholder:
As we begin a new year, many stock and bond investors won't
regret the passing of the old. Since last February, when the
Federal Reserve Board began a series of increases in interest
rates, uncertainty has roiled the markets.
In this type of difficult environment, many investors seek the
stability of a tax-free money market fund. Indeed, Fund Manager
Lindsey Callen had adopted strategies designed to take advantage
of the rising interest rates which were hurting many other kinds
of investments. Throughout this period, Putnam New York Tax
Exempt Money Market Fund remained a stable source of tax-free
income.
You can take comfort in Putnam Management's philosophy of
selecting securities on an issue-by-issue basis with a thorough
examination of each issuer's credit quality. This emphasis on
quality should continue to help protect your fund's portfolio,
whatever the prevailing economic conditions.
In the accompanying report, Lindsey discusses the fiscal year
just ended and prospects for the months ahead.
Respectfully yours,
/s/ George Putnam
George Putnam
Chairman of the Trustees
January 18, 1995
<PAGE>
Report from the fund manager
Lindsey M. Callen
During the year ended November 30, 1994, Putnam New York Tax
Exempt Money Market Fund remained true to its goal of providing
stability of capital and a tax-free income stream. Like many
investors leaving equities and bonds for the safety of money
market funds, you probably appreciate your fund's soundness, high
quality holdings, and tax-free income.
In judging your fund's performance, it is important that you do
so on a tax-equivalent basis. Investments taxed at the combined
federal and New York state and city maximum rate of 47.05% would
have had to yield 5.33% to match your fund's 7-day yield of 2.82%
at the end of this period.
HIGHER INTEREST RATE ENVIRONMENT
During your fund's fiscal year, and particularly its latter half,
we have witnessed rising interest rates as the domestic economy
continued to expand unabated. The Federal Reserve Board's
inflation-dampening strategy led to November's large (three-
quarters of a percentage point) increase in the federal funds
rate. At the beginning of December 1994, the federal funds rate
stood at 5.50%, and the discount rate was 4.75%.
Rates may well go higher. We anticipate that continued strong
economic reports could force yet another rate increase by the
Fed, perhaps before the end of January. We expect an eventual
leveling off of rates sometime mid year, and a corresponding
decline in overall economic activity which may well translate
into a more positive environment for long term fixed-income
investments.
BENEFITING FROM RISING RATES
Your fund is being managed in anticipation of rising interest
rates through the beginning of next year. Accordingly, we have
shortened the average portfolio maturity. Such a move may allow
us to avoid being locked into lower-yielding securities while
interest rates are rising. This also gives us the flexibility to
take advantage of new-issue securities with more attractive
interest rates.
In addition to emphasizing shorter maturities, we are increasing
the proportion of high-quality floating rate securities in the
portfolio. Coupons for these securities are reset at fixed weekly
or monthly intervals. So, as market rates rise, your fund has the
opportunity to benefit quickly. We will continue to closely
monitor economic developments and their effect on interest rates.
AN EMPHASIS ON QUALITY
Credit quality is of increasing concern to today's money market
investors. Consequently, we want to reassure you that your fund's
investments have been selected according to very strict quality
standards. Ideally, every holding must be rated in the two
highest categories by at least two nationally recognized rating
services. If only one rating service has appraised the security,
it must be in one of that service's highest two categories. If
securities are unrated, Putnam Management must judge them to be
of equivalent quality.
In addition, we continually scrutinize market trends and other
factors that could affect the financial strength of each
security's issuer, working to ensure the maintained high credit
quality of every portfolio holding. This emphasis on quality
should be a benefit to shareholders who have chosen the fund as
an alternative to less stable income investments. Additionally,
as the stock market's growth momentum slows, your fund can be a
welcome shelter for those seeking to trade volatility for the
relative security of a money market fund.
LOOKING AHEAD
In our semiannual report last May, we anticipated a strengthening
domestic economy and corresponding rises in interest rates. Our
prediction was confirmed, and we foresee a similar environment in
the coming months. The domestic economy continues to thrive --
though seemingly without inflationary pressures -- and we believe
the Fed will probably make at least one more move to slow this
growth.
In the coming months, we plan to keep the average maturity of the
portfolio relatively short, in order to position the fund to take
best advantage of rising interest rates. We will seek the highest
yields possible from high-quality floating-rate securities. As
always, stability and a steady tax-exempt income stream will be
of paramount importance for your fund.
[FN]
The views expressed throughout the report are exclusively those
of Putnam Management. They are not meant as investment advice.
Although the described holdings were viewed favorably as of
November 30, 1994, there is no guarantee the fund will continue
to hold these securities in the future.
PERFORMANCE COMPARISONS (11/30/94)
<TABLE><CAPTION>
<S> <C>
- -----------------------------------------------------------------
Current return*
- -----------------------------------------------------------------
Passbook savings account 2.17%
- -----------------------------------------------------------------
Taxable money market fund 7-day yield 4.84
- -----------------------------------------------------------------
3-month certificate of deposit 3.65
- -----------------------------------------------------------------
Putnam Tax Exempt Money Market Fund (7-day yield) 2.82
- -----------------------------------------------------------------
<FN>
* 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 return will fluctuate.
Sources: Bank of Boston (passbook savings), IBC/Donaghue's
Money Market Fund Report (taxable money market fund 7-day
yield), Bank Rate Monitor (3-month CDs).
</TABLE>
<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. To make comparisons with other investments
easier, we also provide data for periods ending on December 31,
1994, the most recent calendar quarter.
TOTAL RETURN FOR PERIODS ENDED 11/30/94
<TABLE><CAPTION>
<S> <C> <C> <C>
Lipper
NY MM
Fund Avg. CPI
- -----------------------------------------------------------------
1 year 1.90% 2.11% 2.68%
- -----------------------------------------------------------------
5 years 16.26 16.60 18.90
Annual average 3.06 3.12 3.52
- -----------------------------------------------------------------
Life of fund (10/26/87) 28.59 28.96 29.84
Annual average 3.61 3.65 3.75
- -----------------------------------------------------------------
</TABLE>
TOTAL RETURN FOR PERIODS ENDED 12/31/94
(most recent calendar quarter)
<TABLE><CAPTION>
<S> <C>
Fund
- -----------------------------------------------------------------
1 year 1.83%
- -----------------------------------------------------------------
5 years 15.82
Annual average 2.98
- -----------------------------------------------------------------
Life of fund (10/26/87) 28.68
Annual average 3.57
- -----------------------------------------------------------------
<FN>
Performance data represent past results. Investment returns will
fluctuate. There is no assurance that the fund will be able to
maintain the stable net asset value (NAV) of $1.00 per share.
Fund performance data do not take into account any adjustment for
taxes payable on reinvested distributions.
Net asset value (NAV) is the value of all fund assets, minus
liabilities, divided by the number of outstanding shares.
Lipper New York Tax Exempt Money Market Fund Average (Lipper
NYMM) is an arithmetic average of the total return of all the 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 (CPI) is a commonly used measure of
inflation. It does not represent an investment return.
</TABLE>
<PAGE>
Life cycle investing
As we move through life, our investment needs change. As these
needs change, so does the way we allocate our assets. Here are
some basic rules for setting up and maintaining an investment
program and some examples of how assets might be allocated.
DETERMINE YOUR INVESTMENT OBJECTIVES.
Objectives may include a new home, college education expenses, or
retirement.
EVALUATE YOUR RISK TOLERANCE.
Generally, risk tolerance is higher for younger investors with
longer timelines and lower for older investors who may depend on
their investment for current income.
ALLOCATE YOUR INVESTABLE SAVINGS.
Your investment advisor will help you determine how much of your
investable dollars should be allocated to each investment
category.
CHOOSE THE APPROPRIATE PUTNAM FUNDS.
Using Putnam's free exchange privilege, you can adjust your own
Putnam portfolio of funds as your financial needs change --
without a service fee.*
Look at the facing page for some ways you can allocate your
assets, then turn the page to see how the Putnam Fund
Selector(TM) can help you make your choices.
[FN]
* Putnam reserves the right to change or terminate the
exchange privilege. In some cases, a sales charge may apply.
See prospectus for details.
<PAGE>
Four ways to allocate assets
Your investment advisor can help you determine your objectives,
evaluate your risk tolerance, and develop a long-term financial
plan. These sample portfolios can help you diversify your
portfolio within the Putnam Family of Funds. These illustrations
are not intended as investment advice.
[PIE CHARTS]
SEEKING MAXIMUM GROWTH
30% D 40% Growth and income
40% D 50% Growth
5% D 20% Income or tax-free income
Risk tolerance: Generally investors with a higher risk tolerance
(often in their 20s and early 30s.)
SEEKING GROWTH AND SOME INCOME
40% D 50% Growth and income
30% D 40% Growth
10% D 30% Income or tax-free income
Risk tolerance: Generally investors with a high to moderate risk
tolerance (often in their late 30s and early 40s.)
SEEKING INCOME AND SOME GROWTH
WITH PROTECTION AGAINST INFLATION
30% D 40% Growth and income
10% D 20% Growth
25% D 60% Income or tax-free income
Risk tolerance: Generally investors with a moderate risk
tolerance (often in their late 40s and early 50s.)
SEEKING HIGH CURRENT INCOME AND
PROTECTION AGAINST INFLATION
20% D 30% Growth and income
5% D 10% Growth
40% D 70% Income or tax-free income
Risk tolerance: Generally investors with a low risk tolerance
(often over 60 and retired.)
<PAGE>
Putnam Family of Funds
PUTNAM GROWTH FUNDS
Asia Pacific Growth Fund
Capital Appreciation Fund
Diversified Equity Trust
Europe Growth Fund
Global Growth Fund
Health Sciences Trust
Investors Fund
Natural Resources Trust
New Opportunities Fund
OTC Emerging Growth Fund
Overseas Growth Fund
Vista Fund
Voyager Fund
PUTNAM GROWTH AND INCOME FUNDS
Convertible Income-Growth Trust
Dividend Growth Fund
Equity Income Fund
The George Putnam Fund of Boston
The Putnam Fund for Growth and Income
Managed Income Trust
Utilities Growth and Income Fund
PUTNAM INCOME FUNDS
Adjustable Rate U.S. Government Fund
American Government Income Fund
Balanced Government Fund
Corporate Asset Trust
Diversified Income Trust
Federal Income Trust
Global Governmental Income Trust
High Yield Advantage Fund
High Yield Trust
Income Fund
U.S. Government Income Trust
PUTNAM TAX-FREE FUNDS
Intermediate Tax Exempt Fund
Municipal Income Fund
Tax Exempt Income Fund
Tax-Free High Yield Fund
Tax-Free Insured Fund
State tax-free income funds*
Arizona, California, Florida, Massachusetts, Michigan, Minnesota,
New Jersey, New York, Ohio, and Pennsylvania
LIFESTAGE(SM) FUNDS
Putnam Asset Allocation Funds -- three investment portfolios that
spread your money across a variety of stocks, bonds, and money
market investments to help maximize your return and reduce your
risk.
The three portfolios:
Putnam Asset Allocation: Balanced Portfolio
Putnam Asset Allocation: Conservative Portfolio
Putnam Asset Allocation: Growth Portfolio
MOST CONSERVATIVE INVESTMENTS(+)
Putnam money market funds:
Daily Dividend Trust
Tax Exempt Money Market Fund
CDs and savings accounts(++)
* Not available in all states.
(++) Not offered by Putnam Investments. Certificates of deposit
offer a fixed rate of return and may be insured, up to
certain limits, by federal/state agencies. Savings accounts
may also be insured up to certain limits.
(+) Relative to above.
Please call your financial advisor or Putnam at 1-800-225-
1581 to obtain a prospectus for any Putnam fund. It contains
more complete information, including charges and expenses.
Please read it carefully before you invest or send money.
<PAGE>
Report of Independent Accountants
For the Year Ended November 30, 1994
To the Trustees and Shareholders of
Putnam New York Tax Exempt Money Market Fund
We have audited the accompanying statement of assets and
liabilities of Putnam New York Tax Exempt Money Market Fund,
including the portfolio of investments owned, as of November 30,
1994, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two
years in the period then ended, and the "Financial Highlights"
for each of the seven years in the period then ended, and for the
period October 26, 1987 (commencement of operations) to November
30, 1987. These financial statements and "Financial Highlights"
are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial
statements and "Financial Highlights" based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements and "Financial Highlights" are free of
material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements. Our procedures included confirmation of
securities owned as of November 30, 1994 by correspondence with
the custodian. An audit also includes assessing the accounting
principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and "Financial
Highlights" referred to above present fairly, in all material
respects, the financial position of Putnam New York Tax Exempt
Money Market Fund as of November 30, 1994, the results of its
operations for the year then ended, the changes in its net assets
for the each of the two years in the period then ended, and the
"Financial Highlights" for each of the seven years in the period
then ended, and for the period October 26, 1987 (commencement of
operations) to November 30, 1987, in conformity with generally
accepted accounting principles.
Coopers & Lybrand L.L.P.
Boston, Massachusetts
January 12, 1995
Portfolio of investments owned
November 30, 1994
MUNICIPAL BONDS AND NOTES (104.9%)(a)
<TABLE><CAPTION>
<S> <C> <C> <C>
PRINCIPAL AMOUNT RATINGS(b) VALUE
New York (104.9%)
- -----------------------------------------------------------------
$2,000,000Deer Park Union Frees Sch.
Dist. Tax Antic.
Notes 4 1/4s, 6/28/95 VMIG1 $2,006,103
1,000,000Erie Cnty., Revenue Antic.
Notes 4 3/4s, 8/15/95 VMIG1 1,005,096
1,900,000Erie Cnty., Wtr. Auth. Variable
Rate Demand Notes (VRDN),
Ser. A, American Municipal Bond
Assurance Corp. (AMBAC),
3.60s, 12/1/16 VMIG1 1,900,000
2,165,000 Monroe Cnty., Indl. Dev.
Agcy. Notes VRDN (Columbia/
Sussex), 5s, 11/1/14 AAA 2,165,000
575,000 NY City, Hsg. Dev. Corp.
Mtge. VRDN (Parkgate Tower
Project), 3.55s, 12/1/07 VMIG1 575,000
1,000,000NY City, Indl. Dev. Agcy. VRDN
(Bank Of New York LOC),
3 7/8s, 12/1/01 P-1 1,000,000
2,000,000 NY City, Indl. Dev. Agcy.
VRDN (Banque Indosuez LOC)
(La Guardia Assn. Project),
3.65s, 12/1/15 A-1 2,000,000
1,700,000NYC City, Indl. Dev. Agcy.
VRDN (Banque Indosuez LOC)
(JFK Project), 3.65s, 12/1/15 A-1 1,700,000
700,000NY City, Mun. Wtr. Fin. Auth.
VRDN Ser. G, FGIC, 3.4s,
6/15/24 VMIG1 700,000
NY State Energy Research & Dev.
Auth. Poll. Control VRDN
2,000,000(Lilco Project) (Deutsche Bank LOC),
Ser. B, 3s, 3/1/16 VMIG1 2,000,000
2,000,000(Niagara Mohawk Power Project)
(Toronto Dominion Bank LOC),
Ser. A, 3 3/4s, 7/1/15 A 2,000,000
3,000,000New York St Energy Research &
Development 3.85s, 7/1/27 AMT
(Niagra Mohawk Power Project)
(Toronto Dominion LOC) AAA 3,000,000
1,000,000(Rochester Gas & Electric Corp.)
(Credit Suisse LOC), 3 1/4s,
10/1/14 P-1 1,000,000
NY State Job Dev. Auth. VRDN
520,000 Ser. B-1 to 6, 3.2s
(The Sumitomo Bank LOC), 3/1/00 A-1+ 520,000
1,725,000 Ser. C-1 to 12, 3.2s
(The Sumitomo Bank LOC), 3/1/00 A-1+ 1,725,000
220,000(The Sumitomo Bank LOC), Ser. E-1
to 55 , 3.1s, 3/1/99 A-1+ 220,000
2,000,000NY State Local Govt. Asst. Corp.
VRDN 3 1/2s, 4/1/95 VMIG1 2,000,000
2,000,000NY State Med. Care Fac. Fin.
Agcy. VRDN (Chemical Bank Loc),
Ser. A, 3.6s, 11/1/08 VMIGI 2,000,000
2,000,000Nassau Cnty., Revenue Antic.
Notes Ser. D, 4 3/4s, 8/15/95 VMIG1 2,008,585
New York City Notes
2,000,0003.493s, 6/30/95 Floating Rate
Notes VMIG1 2,000,000
2,000,000Ser. A, 4 1/4s, 2/15/95 Tax
Anticipation Notes VMIG1 2,002,774
2,000,000North Hempstead, Solid Waste
Mgmt. Auth. VRDN (National
Westminster Bank PLC LOC),
Ser. A, 3.6s, 2/1/12 VMIG1 $2,000,000
3,000,000 NYC Go MCP 3.85s, 3/16/95
(Chemical Bank LOC) VMIGI 3,000,000
2,500,000 NYC Muni Wtr. Finance MCP
3.2s, 12/6/94 (Canadian Imperial
Bk of Commerce LOC) P-I 2,500,000
3,000,000 New York State Power
Authority MCP 3.1s, 12/1/94 P-I 3,000,000
1,000,000Roslyn Union Free Sch. Dist.
Tax Antic. Notes 4 1/4s, 6/29/95 AA 1,003,625
2,000,000Triborough. Brdg. & Tunl. Auth.
Special Oblig. VRDN Financial
Guaranty Insurance Corp. (FGIC),
3.6s, 1/1/24 VMIG1 2,000,000
- -----------------------------------------------------------------
Total Municipal Bonds and Notes
47,031,183
- -----------------------------------------------------------------
Total Investments
(cost $47,031,183)(c) $47,031,183
- -----------------------------------------------------------------
<PAGE>
<FN>
NOTES
- -----------------------------------------------------------------
(a) Percentages indicated are based on net assets of
$44,815,001, which correspond to a net asset value per
common share of $1.00.
(b) The Moody's or Standard & Poor's ratings indicated are
believed to be the most recent ratings available at November
30, 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 November 30, 1994. Securities rated by
Putnam are indicated by "/P" and are not publicly rated.
These ratings are not covered by the Report of Independent
Accountants.
Moody's Investors Service, Inc. and Standard and 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) are the
current interest rates at November 30, 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 November 30, 1994 (as a percentage of
net assets):
Energy 24.5%
Waste/Water 15.8
Air/Port/Transportation 15.0
</TABLE>
<PAGE>
Statement of assets and liabilities
November 30, 1994
<TABLE><CAPTION>
<S> <C>
Assets
- -----------------------------------------------------------------
Investments in securities at
amortized cost (Note 1) $47,031,183
- -----------------------------------------------------------------
Cash 71,987
- -----------------------------------------------------------------
Interest and other receivables 305,245
- -----------------------------------------------------------------
Receivable for shares of the fund sold 226,429
- -----------------------------------------------------------------
Total assets 47,634,844
- -----------------------------------------------------------------
Liabilities
- -----------------------------------------------------------------
Distributions payable to shareholders $69,954
- -----------------------------------------------------------------
Payable for shares of the fund repurchased 2,656,293
- -----------------------------------------------------------------
Payable for compensation of Manager (Note 2) 55,574
- -----------------------------------------------------------------
Payable for administrative services (Note 2) 2,042
- -----------------------------------------------------------------
Payable for compensation of Trustees (Note 2) 45
- -----------------------------------------------------------------
Payable for investor servicing and
custodian fees (Note 2) 19,291
- -----------------------------------------------------------------
Other accrued expenses 16,644
- -----------------------------------------------------------------
Total liabilities 2,819,843
- -----------------------------------------------------------------
Net assets $44,815,001
- -----------------------------------------------------------------
Represented by
- -----------------------------------------------------------------
Paid-in capital (Note 4) $44,815,001
- -----------------------------------------------------------------
Net asset value, offering and redemption price
per share ($44,815,001 divided by 44,815,001 shares) $1.00
- -----------------------------------------------------------------
</TABLE>
<PAGE>
Statement of operations
Year ended November 30, 1994
<TABLE><CAPTION>
<S> <C>
Tax exempt interest income $1,312,926
- -----------------------------------------------------------------
Expenses:
- -----------------------------------------------------------------
Compensation of Manager (Note 2) 225,863
- -----------------------------------------------------------------
Investor servicing and custodian fees (Note 2) 915
- -----------------------------------------------------------------
Compensation of Trustees (Note 2) 5,490
- -----------------------------------------------------------------
Reports to shareholders 43,380
- -----------------------------------------------------------------
Postage 5,756
- -----------------------------------------------------------------
Registration fees 4,325
- -----------------------------------------------------------------
Auditing 30,595
- -----------------------------------------------------------------
Legal 59,896
- -----------------------------------------------------------------
Administrative services (Note 2) 4,756
- -----------------------------------------------------------------
Distribution fees (Note 2) 4,186
- -----------------------------------------------------------------
Other expenses 1,068
- -----------------------------------------------------------------
Total expenses 386,230
- -----------------------------------------------------------------
Net investment income 926,696
- -----------------------------------------------------------------
Net increase in net assets resulting from operations $926,696
- -----------------------------------------------------------------
</TABLE>
<PAGE>
Statement of changes in net assets
<TABLE><CAPTION>
<S> <C> <C>
Year ended November 30
----------------------
1994 1993
- -----------------------------------------------------------------
Decrease in net assets
- -----------------------------------------------------------------
Operations:
- -----------------------------------------------------------------
Net investment income $926,696 $909,000
- -----------------------------------------------------------------
Net realized gain on investments -- 4,409
- -----------------------------------------------------------------
Net increase in net assets
resulting from operations 926,696 913,409
- -----------------------------------------------------------------
Distributions to shareholders from:
- -----------------------------------------------------------------
Net investment income (926,696) (909,729)
- -----------------------------------------------------------------
Net realized gain on investments -- (3,680)
- -----------------------------------------------------------------
Decrease from capital share
transactions (Note 4) (5,657,947) (7,232,392)
- -----------------------------------------------------------------
Total decrease in net assets (5,657,947) (7,232,392)
- -----------------------------------------------------------------
Net assets
- -----------------------------------------------------------------
Beginning of period 50,472,948 57,705,340
- -----------------------------------------------------------------
End of period $44,815,001 $50,472,948
- -----------------------------------------------------------------
</TABLE>
<PAGE>
Financial highlights
(For a share outstanding throughout the period)
<TABLE><CAPTION>
<S> <C> <C> <C>
Year ended November 30
- -----------------------------------------------------------------
1994 1993 1992
- -----------------------------------------------------------------
Net asset value, beginning of period $1.00 $1.00 $1.00
- -----------------------------------------------------------------
Investment operations
Net investment income .0188 .0165 .0259(a)
Net realized gain on investments -- .0001 --
- -----------------------------------------------------------------
Total from investment operations $.0188 $.0166 $.0259
- -----------------------------------------------------------------
Distributions to shareholders from:
Net investment income (.0188) (.0165) (.0259)
Net realized gain on investments -- (.0001) --
- -----------------------------------------------------------------
Total distributions (.0188) (.0166) (.0259)
Net asset value, end of period $1.00 $1.00 $1.00
- -----------------------------------------------------------------
Total investment return at
net asset value (%)(b) 1.90 1.67 2.62
- -----------------------------------------------------------------
Net assets, end of period
(in thousands) $44,815 $50,473 $57,705
- -----------------------------------------------------------------
Ratio of expenses to average
net assets (%) .77(d) .91 .78(a)
- -----------------------------------------------------------------
Ratio of net investment income
to average net assets (%) 1.86(d) 1.69 2.59(a)
- -----------------------------------------------------------------
<PAGE>
Financial highlights (continued)
(For a share outstanding throughout the period)
</TABLE>
<TABLE><CAPTION>
<C> <C> <C> <C> <C>
For the period
October 26, 1987
(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)
-- -- -- -- --
- -----------------------------------------------------------------
$.0399 $.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 0.41(c)
- -----------------------------------------------------------------
$64,286 $63,671 $51,113 $34,432 $3,953
- -----------------------------------------------------------------
.80(a) .67(a) .67(a) .64(a) .05(a)(c)
- -----------------------------------------------------------------
3.96(a) 4.95(a) 5.31(a) 4.34(a) .47(a)(c)
- -----------------------------------------------------------------
<FN>
(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) Not annualized.<px;;10>The accompanying notes are an
integral part of these financial statements.
(d) See Note 2.
</TABLE>
<PAGE>
Notes to financial statements
November 30, 1994
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.
At November 30, 1994 the fund had a capital loss carryover of
approximately $6,605 which may be available to offset realized
gains, if any. This amount will expire through November 30, 2002.
To the extent that capital loss carryovers are used to offset
realized capital gains, it is unlikely that gains so offset will
be distributed to shareholders since any such distribution might
be taxable as ordinary income.
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.
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. Such credits amounted to
$144,303.
Investor servicing and custodian fees reported in the Statement
of operations for the year ended November 30, 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 approved payment by the fund to Putnam Mutual Funds
Corp. at an annual rate of 0.10% of the average net assets. The
Trustees have terminated these payments under the fund's Capital
Distribution Plan effective January 1, 1994.
Note 3
Purchases and sales of securities
During the year ended November 30, 1994, purchases and sales
(including maturities) of investment securities (all short- term
obligations) aggregated $297,122,560 and $300,018,700
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 November 30, 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><CAPTION>
<S> <C> <C>
Year ended November 30
- -----------------------------------------------------------------
1994 1993
- -----------------------------------------------------------------
Shares sold 286,251,626 176,650,714
Shares issued in
connection with
reinvestment distributions 862,975 854,851
- -----------------------------------------------------------------
287,114,601 177,505,565
- -----------------------------------------------------------------
Shares repurchased (292,772,548)(184,737,957)
- -----------------------------------------------------------------
Net decrease (5,657,947) (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.
You can set up a regular program for investing with as little as
$25 a month from a Putnam money market fund or your own bank
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.
[FN]
* 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
INDEPENDENT ACCOUNTANTS
Coopers & Lybrand L.L.P.
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
Wiliam 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
Blake E. Anderson
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.
<PAGE>
PUTNAM INVESTMENTS
The Putnam Funds
One Post Office Square
Boston, Massachusetts 02109
Bulk Rate
U.S. Postage
PAID
Putnam
Investments
063-15845
<PAGE>
APPENDIX TO FORM N-30D 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 OThe accompanying notes are an integral part of
these financial statementsO) 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 symbols are omitted.
(6) Page Numbering is different.
