Putnam
New York
Tax Exempt
Money Market
Fund
[sheet music photo]
SEMIANNUAL REPORT
May 31, 1995
[Putnam scales logo]
B O S T O N L O N D O N T O K Y O
<PAGE>
Performance highlights
> "Money funds maintain a competitive advantage over bank products and their
lead is growing wider."
- -- Money Market Insight, June 1995
SEMIANNUAL 1995 RESULTS AT A GLANCE
Total return NAV
- ---------------------------------------------------------------------------
(change in value during
period plus reinvested
distributions)
6 months ended 5/31/95 1.64%
- ---------------------------------------------------------------------------
Distributions:(1) No. Income Total
- ---------------------------------------------------------------------------
6 $0.016285 $0.016285
- ---------------------------------------------------------------------------
Taxable Taxable
Current return: Fund(2) equivalent (a) equivalent (b)
- ---------------------------------------------------------------------------
End of period
7-day yield 3.48% 6.24% 6.55%
30-day yield 3.56 6.38 6.70
Performance data represent past results. For performance over longer periods,
see page 7. An investment in the fund is neither insured nor guaranteed by
the U.S. Government. There can be no assurance that the Fund will be able to
maintain a stable net asset value of $1.00 per share. (1)Capital gains are
taxable for federal and, in most cases, state tax purposes. For some
investors, investment income may also be subject to the federal alternative
minimum tax. Investment income may be subject to state and local taxes.
(2)The yield is the rate at which an investment earns interest income. The 7-
and 30-day yields are the two most common gauges for measuring money market
mutual fund performance. Taxable equivalent assumes (a) maximum 44.19%
federal and New York State tax rates and (b) 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.
<PAGE>
From the Chairman
[photo of George Putnam]
(c) Karsh, Ottawa
Dear Shareholder:
Putnam New York Tax Exempt Money Market Fund was clearly among the
beneficiaries of the improved mood in the municipal bond market in the past
few months. At the same time, tight supplies have made the task of finding
appropriate securities somewhat challenging for Fund Manager Lindsey Callen
during the first half of the fiscal year, the six months ended May 31, 1995.
Because short-term interest rates peaked this spring, and we believe they are
likely to decrease in the short-term, Lindsey is looking for opportunities to
lengthen the average maturity of the portfolio, placing the fund in a more
neutral position.
At the same time, she is optimistic about prospects for the remainder of
fiscal 1995. The recovery in the tax-exempt bond market, while substantial,
has lagged that of other fixed-income markets, leading her to believe the
rally may have some staying power.
Municipal bond investors already have shaken off the jitters ignited by a
flat-tax proposal recently thrown into the legislative hopper. In its purest
form, a flat tax would eliminate the federal income tax exemption on
municipal bonds. We do not believe Congress would enact any such restrictive
provision.
Lindsey provides more discussion of these and other issues in the report that
follows.
Respectfully yours,
[signature of George Putnam]
George Putnam
Chairman of the Trustees
July 19, 1995
<PAGE>
Report from the Fund Manager
Lindsey M. Callen
For the six months ended May 31, 1995, Putnam New York Tax Exempt Money
Market Fund once again delivered a steady stream of double-tax-free income
while maintaining its hallmarks of superior quality and a stable $1.00 share
price. The higher short-term interest rates we have seen since early in 1994
prevailed for at least part of the period, providing a relatively favorable
investment climate for your fund.
During the initial months of the period, data from key economic sectors, such
as manufacturing and employment, continued to demonstrate robust growth in
the U.S. economy. This strength motivated the Federal Reserve Board to
maintain its anti-inflation policy by raising short-term interest rates once
more, in February 1995. However, by early March, weakness had begun to emerge
in housing sales and consumer spending. Economic reports during April and May
confirmed the economy's slowdown. In response, the Fed opted not to raise
interest rates at its March and May meetings, instead adopting a
"wait-and-see" attitude until the economy's signals become more definitive.
> SEEKING VALUE AND QUALITY AMID TIGHT SUPPLY
Because the fiscal year for many municipalities begins in June or July, the
supply of new-issue tax-exempt securities is usually at a low ebb between
January and June of each year. This semiannual period has been no exception.
In addition, many investors have been re-assessing the credit quality of
their portfolios in the wake of events in Orange County last December, when
defaults rocked the entire tax-exempt securities market.
Your fund has always emphasized superior quality investments, and we plan to
be even more demanding when scrutinizing potential investments in the future.
Currently, approximately 75% of your fund's investments are insured or backed
by bank letters of credit. Even for those issues rated in the highest
categories by nationally recognized rating services, this extra degree of
credit assurance is a valued feature and makes many of our holdings among the
highest-quality securities available. We intend to maintain the portfolio's
high percentage of insured
<PAGE>
and bank-backed securities going forward, and may even expand it, should
appropriate investment opportunities arise.
The combination of reduced securities supply and the cautious, re-evaluatory
stance of investors produced a rather quiet period for the market. While
prices of tax-exempt securities fell initially when Orange County announced
its bankruptcy, the market rebounded after January. Nonetheless, trading
activity remained quite low for the rest of the period. In this environment,
we purchased few new securities and concentrated instead on managing the
portfolio to maximize its income potential in the current interest-rate
climate.
> CREDIT CONSCIOUSNESS HERALDS MARKET CHANGES
It appears that issuers of tax-exempt money market securities will face
stricter disclosure and credit quality requirements in the fiscal year ahead.
While simply-structured tax-exempt money market instruments have always been
the mainstay of your fund's portfolio, many comparable mutual funds had
recently begun to purchase derivative securities in order to reach for
additional income. Unfortunately, the value of many of these securities
plummeted when interest rates rose. This caused liquidity problems for many
funds and contributed to Orange County's bankruptcy.
As a result of recent credit and liquidity concerns, more investors have come
to realize the wisdom of your fund's conservative approach. Even the credit
quality of many traditional instruments
PERFORMANCE COMPARISONS (5/31/95)
Current return After tax return*
- ---------------------------------------------------------------------------
Passbook savings account 2.17% 1.15%
- ---------------------------------------------------------------------------
Taxable money market fund 7-day yield 5.51 2.93
- ---------------------------------------------------------------------------
3-month certificate of deposit 4.25 2.26
- ---------------------------------------------------------------------------
Putnam New York Tax Exempt
Money Market Fund (7-day yield) 3.48 3.48
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).
*Calculated on the basis of the 46.88% combined federal, New York State and
City tax rates.
<PAGE>
is now being scrutinized more closely. Many municipalities may soon be forced
to provide additional quality assurances such as bank letters of credit or to
offer higher rates of interest to attract investors. In this newly
credit-conscious environment, we will be redoubling our efforts to find
well-valued securities that meet our strict criteria for quality, liquidity,
and price sensitivity.
> MAINTAINING A NEUTRAL, FLEXIBLE STANCE
With interest rate increases slowing down at the beginning of the period and
rates actually starting to trend downward in May, we have begun to lengthen
the average maturity of the portfolio slightly. Compared to the more
aggressive shorter average maturity we had adopted when interest rates were
rising steadily, this places the fund in a more neutral position. This slight
extension of portfolio maturity also enables the fund to avoid reinvestment
during July, when investor demand is expected to surge due to the unusually
large number of tax-exempt securities that will be maturing or reaching their
call dates. We believe that this high demand should more than cancel the
cyclical, seasonal increase in tax-exempt securities supply, and could push
down the yields on new issues.
We have also begun to re-evaluate our floating-rate securities position,
which was developed to maximize the fund's income when interest rates were
moving steadily upward. Going forward, we intend to target those
floating-rate securities whose yields reset at longer intervals rather than
those that reset on a weekly basis. Together with our extension of portfolio
average maturity, these moves are designed to help the fund benefit from
potential interest-rate increases while protecting it from any declines.
> LOOKING AHEAD
We share the opinion of the Federal Reserve's Board of Governors that it is
too early to tell whether the economy is indeed decelerating or simply taking
a short breather on the way to resuming growth.
Given these circumstances, we are keeping the fund flexible. We expect to
maintain a relatively neutral average portfolio maturity while we continue to
monitor the economy and the Fed carefully for signs of change. Meanwhile, we
believe our focus on traditional high-quality money market instruments should
enable the fund to maintain the stability that is most shareholders' top
priority.
The views expressed throughout the report are exclusively those of Putnam
Management. They are not meant as investment advice.
<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 (see the
tables below).
We provide total returns for varying lengths of time ending on May 31, 1995,
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, 1995, the most recent calendar quarter. Finally, we have provided
terms and definitions as they apply to your fund.
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.
TOTAL RETURN FOR PERIODS ENDED 5/31/95
Lipper New York
Fund shares Money Market Consumer
at NAV Fund Average Price Index
- ---------------------------------------------------------------------------
6 months 1.64% 1.65% 1.67%
- ---------------------------------------------------------------------------
1 year 2.74 2.84 3.19
- ---------------------------------------------------------------------------
5 years 15.23 15.47 17.80
Annual average 2.88 2.92 3.33
- ---------------------------------------------------------------------------
Life of fund 30.70 31.05 32.00
Annual average 3.59 3.63 3.72
- ---------------------------------------------------------------------------
Fund performance data do not take into account any adjustment for taxes
payable on reinvested distributions. The fund began operations on 10/26/87.
Performance data represent past results and are not indicative of future
returns. Investment returns will fluctuate.
<PAGE>
TOTAL RETURN FOR PERIODS ENDED 6/30/95
(most recent calendar quarter)
NAV
- ---------------------------------------------------------------------------
1 year 2.85%
- ---------------------------------------------------------------------------
5 years 15.06
Annual average 2.85
- ---------------------------------------------------------------------------
Life of fund 31.05
Annual average 3.58
- ---------------------------------------------------------------------------
Performance data represent past results. There can be no assurance that the
Fund will be able to maintain a stable net asset value of $1.00 per share.
Performance data reflect an expense limitation previously in effect. Without
the expense limitation, total returns would have been lower.
TERMS AND DEFINITIONS
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, is an arithmetic
average of the total return of all the New York State tax exempt money market
mutual funds tracked by 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.
<PAGE>
Portfolio of investments owned
May 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
MUNICIPAL BONDS AND NOTES (79.4%)*
PRINCIPAL AMOUNT RATINGS** VALUE
<C> <S> <C> <C>
New York
- ------------------------------------------------------------------------------------
$2,000,000 Deer Park Union Frees Sch. Dist TAN
4-1/4s, 6/28/95 MIG1 $ 2,000,815
1,900,000 Erie Cnty., RAN (Union Bank of Switzerland
LOC), 4-3/4s, 8/15/95 MIG1 1,900,000
1,000,000 Erie Cnty., Wtr. Auth. VRDN, SerA, AMBAC,
3.4s,12/1/06 VMIG1 1,001,501
2,165,000 Monroe Cnty., Indl. Dev. Agcy. Notes VRDN
(Columbia Sussex) (Cumberland Federal
Savings and Loan LOC), 5s, 11/1/14 A-1+ 2,165,000
NY City, Hsg. Dev. Corp. Mtge. VRDN
(Parkgate Tower Project) (Citibank LOC),
565,000 3.5s, 12/1/7 VMIG1 565,000
2,000,000 (Tribeca Towers), Ser. A, 3.45s, 12/15/24 VMIG1 2,000,000
1,000,000 NY City, Indl. Dev. Agcy. VRDN (Bank of
New York LOC), 4s, 12/1/01 A-1 1,000,000
2,000,000 NY State Dorm. Auth. VRDN (Miriam Osborn
Memorial Home)(Banque Paribas LOC), Ser.
A, 3.45s, 7/1/24 VMIG1 2,000,000
NY State Energy Research & Dev. Auth.
Poll. Control VRDN
1,000,000 (Niagara Mohawk Power Project) (Toronto
Dominion LOC), Ser. A, 4.8s, 7/1/15 A-1+ 1,000,000
3,000,000 (Lilco Project)(Deutsche Bank LOC),
Ser. A, 4.7s, 3/1/16 VMIG1 3,000,000
1,000,000 (Rochester Gas & Electric Corp.)
(Bank of New York LOC), 3.9s, 10/1/14 P-1 1,000,000
2,000,000 (NY Elec. & Gas)(Union Bank of Switzerland
LOC), Ser. D, 4.75s, 10/1/29 VMIG1 2,000,000
NY State Job Dev. Auth. VRDN
(The Sumitomo Bank LOC),
465,000 Ser. B-1 to 6, 4.2s, 3/1/00 VMIG1 465,000
1,615,000 Ser. C-1 to 12, 4.2s, 3/1/00 VMIG1 1,615,000
195,000 Ser. E-1-55, 4.1s, 3/1/99 VMIG1 195,000
1,500,000 NY State Local Govt. Asst. Corp. VRDN
(Swiss Bank Corp. Credit Suisse LOC),
3.2s, 4/1/23 VMIG1 1,500,000
2,000,000 Nassau Cnty., RAN Ser. D, 4-3/4s, 8/15/95 MIG1 2,002,528
2,000,000 NY City, Floating Rate Notes 4.1831s,
6/30/95 MIG1 2,000,000
2,000,000 North Hempstead, Solid Waste Mgmt. Auth.
VRDN (National Westminster Bank PLC LOC),
Ser. A, 3.35s, 2/1/12 VMIG1 2,000,000
1,000,000 Roslyn Union Free Sch. Dist. TAN 4-1/4s,
6/29/95 Aa 1,000,498
2,000,000 Triborough Brdg. & Tunnel Auth. Special
Oblig. VRDN FGIC, 3.3s, 1/1/24 VMIG1 2,000,000
- ------------------------------------------------------------------------------------
Total Municipal Bonds and Notes
(cost $32,410,342) $32,410,342
- ------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MUNICIPAL COMMERCIAL PAPER (28.2%)*
PRINCIPAL AMOUNT RATINGS** VALUE
<C> <S> <C> <C>
- --------------------------------------------------------------------------------
$2,000,000 NY City, GO MCP (Chemical Bank LOC),
4.1s, 7/18/95 VMIG1 $ 2,000,000
2,500,000 NY City, Muni Wtr. Fin. MCP (Canadian
Imperial Bank of Commerce LOC),
4.1s, 7/20/95 A-1+ 2,500,000
3,000,000 NY State Pwr.Auth. MCP 3.95s, 6/12/95 P-1 3,000,000
2,040,000 NY State Dorm Auth. MCP (Memorial
Sloan-Kettering Cancer Center)
(Chemical Bank LOC), 4s, 6/2/95 P-1 2,040,000
2,000,000 NY State Env. Fac. MCP (General
Electric Project), 3.9s, 8/1/95 P-1 2,000,000
- --------------------------------------------------------------------------------
Total Municipal Commercial Paper
(cost $11,540,000) $11,540,000
- --------------------------------------------------------------------------------
Total Investments (cost $43,950,342)*** $43,950,342
- --------------------------------------------------------------------------------
</TABLE>
*Percentages indicated are based on total net assets of $40,830,763, which
correspond to a net asset value per share of $1.00
**The Moody's or Standard & Poor's ratings indicated are believed to be the
most recent ratings available at May 31, 1995, 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 obligations do so, and the ratings do not necessarily
represent what the agencies would ascribe to these securities at May 31,
1995. Securities rated by Putnam are indicated by "/P" and are not
publicly rated.
Moody's Investors Service, Inc. and Standard & Poor's Corp. are the
leading independent rating agencies for debt securities. "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 Investor 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 a 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 and protection
A-1= Strong degree of safety
A-2= Considered strong but lacks solid strength for timely repayment
***The aggregate identified cost on a tax basis is the same.
<PAGE>
The rates shown on VRDN are the current interest rates at May 31, 1995 which
are subject to change based on the terms of the security.
The fund had the following industry group concentrations greater than 10% on
May 31, 1995 (as a percentage of net assets):
Energy 22.8%
Waste/Water 12.6%
Key to Abbreviations
AMBAC -- AMBAC Indemnity Corp.
FGIC -- Federal Guaranty Insurance Corporation
MCP -- Municipal Commercial Paper
RAN -- Revenue Anticipation Notes
TAN -- Tax Anticipation Notes
VRDN -- Variable Rate Demand Notes
The accompanying notes are an integral part of these financial statements.
<PAGE>
Statement of assets and liabilities
May 31, 1995 (Unaudited)
Assets
- --------------------------------------------------------------------------
Investments in securities at amortized cost (Note 1) $43,950,342
- --------------------------------------------------------------------------
Interest and other receivables 414,394
- --------------------------------------------------------------------------
Receivable for shares of the fund sold 191,506
- --------------------------------------------------------------------------
Total assets 44,556,242
- --------------------------------------------------------------------------
Liabilities
- --------------------------------------------------------------------------
Distributions payable to shareholders $ 85,541
- --------------------------------------------------------------------------
Payable to sub-custodian (Note 2) 3,518,467
- --------------------------------------------------------------------------
Payable for shares of the fund repurchased 72,462
- --------------------------------------------------------------------------
Payable for compensation of Manager (Note 2) 48,078
- --------------------------------------------------------------------------
Payable for administrative services (Note 2) 863
- --------------------------------------------------------------------------
Payable for compensation of Trustees (Note 2) 68
- --------------------------------------------------------------------------
Total liabilities 3,725,479
- --------------------------------------------------------------------------
Net assets $40,830,763
- --------------------------------------------------------------------------
Represented by
- --------------------------------------------------------------------------
Paid-in capital (Note 4) $40,830,763
- --------------------------------------------------------------------------
Net asset value, offering and redemption price per share
($40,830,763 divided by 40,830,763 shares) $1.00
- --------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
Statement of operations
Six months ended May 31, 1995 (Unaudited)
Tax exempt interest income $881,025
- ------------------------------------------------------------------
Expenses:
- ------------------------------------------------------------------
Compensation of Manager (Note 2) $ 98,750
- ------------------------------------------------------------------
Compensation of Trustees (Note 2) 2,840
- ------------------------------------------------------------------
Reports to shareholders 6,954
- ------------------------------------------------------------------
Registration fees 4,400
- ------------------------------------------------------------------
Auditing 7,223
- ------------------------------------------------------------------
Legal 9,624
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Administrative services (Note 2) 2,412
- ------------------------------------------------------------------
Other expenses 253
- ------------------------------------------------------------------
Total expenses 132,456
- ------------------------------------------------------------------
Net investment income 748,569
- ------------------------------------------------------------------
Net increase in net assets resulting from operations $748,569
- ------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
Statement of changes in net assets
<TABLE>
<CAPTION>
Six months ended Year ended
May 31 November 30
---------------- -----------
1995* 1994
<S> <C> <C>
- --------------------------------------------------------------------------------------------
Decrease in net assets
- --------------------------------------------------------------------------------------------
Operations:
- --------------------------------------------------------------------------------------------
Net investment income $ 748,569 $ 926,696
- --------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 748,569 926,696
- --------------------------------------------------------------------------------------------
Distributions to shareholders from:
- --------------------------------------------------------------------------------------------
Net investment income (748,569) (926,696)
- --------------------------------------------------------------------------------------------
Decrease from capital share transactions (Note 4) (3,984,238) (5,657,947)
- --------------------------------------------------------------------------------------------
Total decrease in net assets (3,984,238) (5,657,947)
- --------------------------------------------------------------------------------------------
Net assets
- --------------------------------------------------------------------------------------------
Beginning of period 44,815,001 50,472,948
- --------------------------------------------------------------------------------------------
End of period $40,830,763 $44,815,001
- --------------------------------------------------------------------------------------------
</TABLE>
*Unaudited.
The accompanying notes are an integral part of these financial statements.
<PAGE>
Financial highlights
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Six months
ended May
31 Year ended November 30
---------- --------------------------------------------------------
1995* 1994 1993 1992 1991 1990
---------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ----------------------------------------------------------------------------------------------------------
Investment operations:
- ----------------------------------------------------------------------------------------------------------
Net investment income .0163 .0188 .0165 .0259(a) .0399(a) .0497(a)
- ----------------------------------------------------------------------------------------------------------
Net realized gain on
investments -- -- .0001 -- -- --
- ----------------------------------------------------------------------------------------------------------
Total from investment
operations .0163 .0188 $ .0166 $ .0259 $ .0399 $ .0497
- ----------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income (.0163) (.0188) (.0165) (.0259) (.0399) (.0497)
- ----------------------------------------------------------------------------------------------------------
Net realized gain on
investments -- -- (.0001) -- -- --
- ----------------------------------------------------------------------------------------------------------
Total distributions (.0163) (.0188) (.0166) (.0259) (.0399) (.0497)
- ----------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ----------------------------------------------------------------------------------------------------------
Total investment return at
Net asset value (%) (b) 1.64(c) 1.90 1.67 2.62 4.07 5.09
- ----------------------------------------------------------------------------------------------------------
Net assets,
End of period (in thousands) $40,831 $44,815 $50,473 $57,705 $64,286 $63,671
- ----------------------------------------------------------------------------------------------------------
Ratio of expenses to average
Net assets (%) .30(c) 0.77 .91 .78(a) .80(a) .67(a)
- ----------------------------------------------------------------------------------------------------------
Ratio of net investment income
To average net assets (%) 1.69(c) 1.86 1.69 2.59(a) 3.96(a) 4.95(a)
- ----------------------------------------------------------------------------------------------------------
</TABLE>
* Unaudited.
(a) Reflects an expense limitation. As a result of such limitation, expenses
of the fund for the years ended November 30, 1992, 1991 and 1990 reflect
reductions of $0.0024, $0.0034, and $0.0043 per share, respectively.
(b) Total investment return assumes dividend reinvestment.
(c) Not annualized.
<PAGE>
Notes to financial statements
May 31, 1995 (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.
At November 30, 1994 the fund 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.
<PAGE>
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.
As part of the custodian contract between PFTC and the subcustodian bank, the
subcustodian has a lien on the securities of the fund to the extent permitted
by the fund's investment restrictions to cover any advances made by the
subcustodian for the settlement of securities purchased by the fund. At May
31, 1995, the payable to subcustodian represents the amount due for cash
advanced for the settlement of securities purchased.
Investor servicing and custodian fees reported in the Statement of operations
for the six months ended May 31, 1995 have been reduced by credits allowed by
PFTC.
Note 3
Purchases and sales of securities
During the six months ended May 31, 1995, purchases and sales (including
maturities) of investment securities (all short-term obligations) aggregated
$147,500,000 and $201,720,000 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:
Six months ended Year ended
May 31 November 30
- -------------------------------------------------------------------------------
1995 1994
- -------------------------------------------------------------------------------
Shares sold 77,037,074 286,251,626
- -------------------------------------------------------------------------------
Shares issued in connection with
reinvestment of distributions 651,635 862,975
- -------------------------------------------------------------------------------
77,688,709 287,114,601
- -------------------------------------------------------------------------------
Shares repurchased (81,672,947) (292,772,548)
- -------------------------------------------------------------------------------
Net decrease (3,984,238) (5,657,947)
- -------------------------------------------------------------------------------
<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 the original
cost of the shares.
For details about any of these or other services, contact your financial
advisor or call the toll-free number shown below and speak with a helpful
Putnam representative.
> To make an additional investment in this or any other Putnam fund, contact
your financial advisor or call our toll-free number: 1-800-225-1581.
*Regular investing, of course, does not guarantee a profit or protect against
a loss in a declining market. 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 F. Pounds, Vice Chairman
Jameson Adkins Baxter
Hans H. Estin
John A. Hill
Elizabeth T. Kennan
Lawrence J. Lasser
Robert E. Patterson
Donald S. Perkins
George Putnam, III
Eli Shapiro
A.J.C. Smith
W. Nicholas Thorndike
OFFICERS
George Putnam
President
Charles E. Porter
Executive Vice President
Patricia C. Flaherty
Senior Vice President
Lawrence J. Lasser
Vice President
Gordon H. Silver
Vice President
Gary N. Coburn
Vice President
James Erickson
Vice President
William F. McGue
Vice President
Blake E. Anderson
Vice President
Lindsey M. Callen
Vice President and Fund Manager
William N. Shiebler
Vice President
John R. Verani
Vice President
Paul M. 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.
Shares of mutual funds are not deposits or obligations of, or guaranteed or
endorsed by, any financial institution, are not insured by the Federal
Deposit Insurance Corporation (FDIC), the Federal Reserve Board or any other
agency, and involve risk, including the possible loss of principal amount
invested.
<PAGE>
Bulk Rate
U.S. Postage
PAID
Putnam
Investments
19009-063
PUTNAM INVESTMENTS
The Putnam Funds
One Post Office Square
Boston, Massachusetts 02109
<PAGE>
APPENDIX TO FORM N-30D FILINGS TO DESCRIBE DIFFERENCES BETWEEN PRINTED
AND EDGAR-FILED TEXTS:
(1) Bold and italic typefaces are displayed in normal type.
(2) Headers (e.g., the name of the fund) are omitted.
(3) Certain tabular and columnar headings and symbols are displayed
differently in this filing.
(4) Bullet points and similar graphic signals are omitted.
(5) Page numbering is omitted.
(6) Trademark symbol replaced with (TM)
