Putnam
New York
Tax Exempt
Money Market Fund
SEMIANNUAL REPORT ON PERFORMANCE AND OUTLOOK
5-31-00
[SCALE LOGO OMITTED]
From the Trustees
[GRAPHIC OMITTED: PHOTO OF JOHN A. HILL AND GEORGE PUTNAM]
Dear Shareholder:
It is a pleasure to greet you in our new roles as Chairman of the
Trustees and President of the Funds. As you know, both of us have been
members of the Board of Trustees for a number of years -- years in which
Putnam has experienced tremendous growth and transformed itself from a
respected U.S. investment management firm to a financial institution
with a global presence. Our municipal department continues to grow as
well, boasting 21 municipal portfolio managers and research analysts.
The past six months have been a relatively positive period for
tax-exempt money market investors. Yields on these securities have
become unusually attractive -- especially relative to yields on
longer-term municipal securities. Although the municipal market has not
experienced the inverted yield curve of the Treasury market -- whereby
yields on short-term securities are outpacing those on longer-term
issues -- the municipal market yield curve is flatter than usual. With
longer-term municipal bonds not offering significantly higher yields
than short-term securities, investors are not being paid to assume the
greater interest-rate risks associated with these longer issues.
Total return for 6 months ended 5/31/00
NAV
--------------------
1.61%
--------------------
Past performance is no indication of future results. Performance
information for longer periods and explanation of performance
calculation methods begin on page 6.
In this environment, it is not surprising that demand for municipal
money market investments has risen considerably. As of March 31, 2000,
demand was up approximately 10% from the same time last year. Meanwhile,
supply has been somewhat lower than last year, as municipalities flush
with income tax revenues require less additional financing. In this
climate, mutual funds like Putnam New York Tax Exempt Money Market Fund
continue to attract new assets.
* STATE ECONOMY STAYS HEALTHY AS FED SEEKS TO SLOW NATIONAL ECONOMY
Over the past six months, the Federal Reserve Board has raised
short-term interest rates six times, essentially taking back its three
interest-rate reductions during the fall of 1998 and then some. The
Fed's goal is to slow the speed of the economy, which grew by 7.3% and
5.4% during the fourth quarter of 1999 and the first quarter of 2000,
respectively, and still appears to be going strong. Although the Fed may
be poised for another rate increase or two before the November
elections, it may finally be nearing the end of this tightening cycle.
Recently, the economy has begun to show signs of a slowdown, while
inflation remains fairly stable.
New York's economy remained in good shape over the period. Both the
state and New York City budgets stayed strong, reflecting higher tax
revenues amid rising real estate values and a robust service economy,
particularly in the city. Tax surpluses translated into a reduced need
for new issuance of tax-exempt securities. Although supply was lighter,
both city and state governments did issue some new tax-exempt securities
over the period. Securities supply could drop off in the coming year,
although it is really too early to tell since the bulk of the state and
city's securities issuance usually comes in October.
* DURATION MANAGEMENT KEY TO HIGHER RETURNS
With interest rates on tax-exempt money market issues continuing to rise
in step with the Fed's interest rate increases over the period, your
fund's manager, Brian S. Torpey, used duration management as a key tool
for managing the fund. To capture the highest available money market
rates, Brian kept the portfolio duration a bit longer than the market
average over the past six months, at approximately 70 days to maturity.
This slightly longer duration allowed the fund to accrue additional
income from today's higher rates.
As long as the economy continues to grow, the Fed appears poised to
continue tightening interest rates over the next several months. Should
inflation threaten to accelerate, the board might raise rates even more
dramatically. In any case, your fund manager will continue to pursue the
conservative strategies that have served shareholders well thus far, and
tax-exempt money market funds such as this one will remain attractive
for investors seeking a combination of liquidity, superior quality, and
relative stability.
* A CONFIDENT LOOK AHEAD
As we assume our new positions in the supervision of the funds, we are
certain that many of the changes that lie ahead will be breathtaking in
their scope. What will not change is the Trustees' dedication to serving
the best interests of our shareholders.
We embark upon this new era of Putnam's rich heritage with confidence
and we look forward to the opportunity of continuing to help you meet
your financial objectives for many years to come.
Respectfully yours,
/S/ JOHN A. HILL /S/ GEORGE PUTNAM, III
John A. Hill George Putnam, III
Chairman of the Trustees President of the Funds
July 19, 2000
The views expressed here are exclusively those of Putnam Management.
They are not meant as investment advice. Although the described holdings
were viewed favorably as of 5/31/00, there is no guarantee the fund
will continue to hold these securities in the future. An investment in
the fund is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. Although the fund seeks to
preserve your investment at $1.00 per share, it is possible to lose
money by investing in the fund.
PERFORMANCE COMPARISONS (5/31/00)
Current After-tax After-tax
return* return1 return2
------------------------------------------------------------------------
Passbook savings account 0.85% 0.46% 0.48%
------------------------------------------------------------------------
Taxable money market fund (7-day yield) 3.60 1.94 2.03
------------------------------------------------------------------------
3-month certificate of deposit 4.45 2.40 2.50
------------------------------------------------------------------------
Putnam New York Tax Exempt
Money Market Fund (7-day yield) 3.33 3.33 3.33
------------------------------------------------------------------------
The net asset value of money market mutual funds is uninsured and
designed to be fixed, while distributions vary daily. Investment returns
will fluctuate. The principal value on passbook savings and on bank CDs
is generally insured up to certain limits by state and federal agencies.
Unlike stocks, which incur more risk, CDs offer a fixed rate of return.
Unlike money market funds, bank CDs may be subject to substantial
penalties for early withdrawals.
1 After-tax return assumes a combined 46.02% federal, New York state,
and New York City tax rate.
2 After-tax return assumes a combined 43.74% federal and New York state
tax rate.
*Sources: Fleet Bank (passbook savings), Bank Rate Monitor (3-month CDs),
IBC/Donaghue's Money Fund Report (taxable money market fund compound
7-day yield).
PERFORMANCE SUMMARY
This section provides information about your fund's performance, which
should always be considered in light of its investment strategy. Putnam
New York Tax Exempt Money Market Fund is designed for investors seeking
current income exempt from state, federal and New York City personal
income tax consistent with capital preservation, stable principal, and
liquidity.
TOTAL RETURN FOR PERIODS ENDED 5/31/00
Lipper New York
Tax Exempt Consumer
Fund shares Money Market price
at NAV Fund Average index
------------------------------------------------------------------------
6 months 1.61% 1.62% 1.72%
------------------------------------------------------------------------
1 year 2.96 2.96 3.07
------------------------------------------------------------------------
5 years 15.34 15.54 12.55
Annual average 2.90 2.93 2.39
------------------------------------------------------------------------
10 years 32.90 33.38 32.59
Annual average 2.88 2.92 2.86
------------------------------------------------------------------------
Life of fund (since 10/26/87) 50.75 51.37 48.57
Annual average 3.31 3.35 3.20
------------------------------------------------------------------------
Fund shares
at NAV
------------------------------------------------------------------------
Current return (end of period)
------------------------------------------------------------------------
Current 7-day yield1 3.33%
------------------------------------------------------------------------
Taxable equivalent2 6.17
------------------------------------------------------------------------
Taxable equivalent3 5.92
------------------------------------------------------------------------
Current 30-day yield1 3.81
------------------------------------------------------------------------
Taxable equivalent2 7.06
------------------------------------------------------------------------
Taxable equivalent3 6.77
------------------------------------------------------------------------
1 The 7-day and 30-day yields are the two most common gauges for
measuring money market mutual fund performance.
2 Assumes a combined 46.02% federal, New York state, and New York City
tax rate. 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. Investment income may be
subject to state and local taxes.
3 Assumes a combined 43.74% federal and New York state tax rate.
Past performance is no assurance of future results and more recent
returns may be more or less than those shown. Fund performance data do
not take into account any adjustment for taxes payable on reinvested
distributions. Investment returns will fluctuate. An investment in the
fund is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. Although the fund seeks to
preserve your investment at $1.00 per share, it is possible to lose
money by investing in the fund. The fund's holdings do not match those
in the Lipper average. Yield data more closely reflect the current
earnings of the fund.
DISTRIBUTION INFORMATION 6 MONTHS ENDED 5/31/00
------------------------------------------------------------------------
Distributions (number) 6
------------------------------------------------------------------------
Income $0.0160
------------------------------------------------------------------------
Total $0.0160
------------------------------------------------------------------------
TOTAL RETURN FOR PERIODS ENDED 6/30/00 (most current calendar quarter)
Fund shares
at NAV
------------------------------------------------------------------------
6 months 1.43%
------------------------------------------------------------------------
1 year 2.81
------------------------------------------------------------------------
5 years 15.13
Annual average 2.86
------------------------------------------------------------------------
10 years 32.46
Annual average 2.85
------------------------------------------------------------------------
Life of fund (since 10/26/87) 50.87
Annual average 3.30
------------------------------------------------------------------------
TERMS AND DEFINITIONS
Total return shows how the value of the fund's shares changed over time,
assuming you held the shares through the entire period and reinvested
all distributions in the fund.
Net asset value (NAV) is the value of all your fund's assets, minus any
liabilities, divided by the number of outstanding shares, not including
any initial or contingent deferred sales charge.
COMPARATIVE BENCHMARKS
Lipper New York Tax Exempt Money Market Fund Average, used for
performance comparison purposes, is an arithmetic average of the total
return of all New York 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. It is not
possible to invest directly in an index.
Consumer price index (CPI) is a commonly used measure of inflation; it
does not represent an investment return.
WELCOME TO WWW.PUTNAMINV.COM
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learn more about investing and retirement planning, and access market
news and economic outlooks from Putnam.
VISIT PUTNAM'S SITE ON THE WORLD WIDE WEB FOR:
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* Putnam's money management philosophy
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* the latest on new funds and other Putnam news
You can also read Putnam economist Dr. Robert Goodman's commentary and
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or objective, use our glossary to decode investment terms . . . and much
more.
The site can be accessed through any of the major online services
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you can also access it via Netscape or Microsoft Internet Explorer,
using an independent Internet service provider.
New features will be added to the site regularly. So be sure to bookmark us at
http://www.putnaminv.com
A GUIDE TO THE FINANCIAL STATEMENTS
These sections of the report constitute the fund's financial statements.
The fund's portfolio lists all the fund's investments and their values
as of the last day of the reporting period. Holdings are organized by
asset type and industry sector, country, or state to show areas of
concentration and diversification.
Statement of assets and liabilities shows how the fund's net assets and
share price are determined. All investment and noninvestment assets are
added together. Any unpaid expenses and other liabilities are
subtracted from this total. The result is divided by the number of
shares to determine the net asset value per share, which is calculated
separately for each class of shares. (For funds with preferred shares,
the amount subtracted from total assets includes the net assets
allocated to remarketed preferred shares.)
Statement of operations shows the fund's net investment gain or loss
for the reporting period. This is determined by adding up all the fund's
earnings -- from dividends and interest income -- and subtracting its
operating expenses. This statement also lists any net gain or loss the
fund realized on the sales of its holdings and -- for holdings that
remain in the portfolio -- any change in unrealized gains or losses over
the period.
Statement of changes in net assets shows how the fund's net assets were
affected by distributions to shareholders and by changes in the number
of the fund's shares. It lists distributions and their sources (net
investment income or realized capital gains) over the current reporting
period and the most recent fiscal year-end. The distributions listed
here may not match the sources listed in the Statement of operations
because the distributions are determined on a tax basis and may be paid
in a different period from the one in which they were earned.
Financial highlights provide an overview of the fund's investment
results, per-share distributions, expense ratios, net investment income
ratios and portfolio turnover in one summary table, reflecting the five
most recent reporting periods. In a semiannual report, the highlight
table also includes the current reporting period. For open-end funds, a
separate table is provided for each share class.
<TABLE>
<CAPTION>
THE FUND'S PORTFOLIO
May 31, 2000 (Unaudited)
KEY TO ABBREVIATIONS
AMBAC -- AMBAC Indemnity Corporation
FGIC -- Financial Guaranty Insurance Company
FHA Insd. -- Federal Housing Administration Insured
FRB -- Floating Rate Bonds
G.O. Bonds -- General Obligation Bonds
LOC -- Letter of Credit
MBIA -- Municipal Bond Investors Assurance Corporation
VRDN -- Variable Rate Demand Notes
MUNICIPAL BONDS AND NOTES (89.9%) (a)
PRINCIPAL AMOUNT RATING (RAT) VALUE
<S> <C> <C> <C>
New York (85.2%)
-------------------------------------------------------------------------------------------------------------------
$ 1,900,000 Dutchess Cnty., Indl. Dev. Agency Civic Fac. VRDN
(Marist College), Ser. A, FRB, 3.95s, 7/1/28
(Bank of New York (LOC)) VMIG1 $ 1,900,000
1,400,000 Glens Falls Indl. Dev. Agcy. VRDN (Broad St. Ctr.),
3.9s, 8/1/05 (Fleet Bank of New York (LOC)) A-1 1,400,000
3,500,000 Long Island, Pwr. Auth. NY Elec. Syst. VRDN, Ser. 1,
3.95s, 5/1/33 VMIG1 3,500,000
1,900,000 Niagara Cnty., Indl. Dev. Agcy. Solid Waste Disp.
VRDN (American Fuel Co.), 4.2s, 11/15/24
(Wachovia Bank of NC (LOC)) VMIG1 1,900,000
NY City, Indl. Dev. Agcy. VRDN
1,500,000 (Stroheim & Romann, Inc.), 3.95s, 12/1/15
(Westdeutsche Landesbank
Girozentrale (LOC)) VMIG1 1,500,000
1,900,000 (Columbia Grammar School), 3.9s, 6/30/14
(Chase Manhattan Bank (LOC)) A-1+ 1,900,000
500,000 NY City, Muni. Assistance Corp. Rev. Bonds, Ser. E,
5 1/2s, 7/1/00 Aa2 500,436
NY City, Muni. Fin. Auth. Wtr. & Swr. Syst.
Rev. Bonds, Ser. A Prerefunded
500,000 FGIC, 7 1/2s, 6/15/19 Aaa 508,337
500,000 MBIA, 7 1/2s, 6/15/19 Aaa 508,337
NY Metropolitan Trans. Auth.
Rev. Bonds, Prerefunded
3,645,000 (Trans. Facs. Svc. Contract), Ser. 4, 7 7/8s, 7/1/17 AAA 3,711,793
500,000 (Commuter Facs. Svc. Contract), Ser. 4,
7 1/2s, 7/1/19 AAA 509,087
NY State Dorm. Auth. Rev. Bonds
500,000 (City U. Syst.), Ser. A, AMBAC, 5 1/2s, 7/1/00 A 500,577
1,100,000 (Dept. of Hlth. Issue), 7.7s, 7/1/20, Prerefunded Aaa 1,125,767
1,700,000 NY State Dorm. Auth. VRDN (NY Pub. Library),
Ser. B, MBIA, 3.85s, 7/1/28 VMIG1 1,700,000
1,000,000 NY State G.O. Bonds, Ser. B, 6 3/8s, 8/15/00 A2 1,004,644
1,800,000 NY State Hsg. Fin. Agcy. VRDN (Mt. Sinai School),
Ser. A, 4 1/4s, 11/1/14 (Chase Manhattan
Bank (LOC)) VMIG1 1,800,000
500,000 NY State Med. Care Fac. Fin. Agcy. Rev. Bonds
(Presbyterian Hosp.), Ser. A, FHA Insd., 7.7s,
2/15/25, Prerefunded Aaa 513,705
1,700,000 NY State Med. Care Fac. Fin. Agcy. VRDN
(Lenox Hill Hosp.), Ser. A, 3 3/4s, 11/1/08
(Chase Manhattan Bank (LOC)) VMIG1 1,700,000
NY State Pwr. Auth. Rev. Bonds, Ser. Y
1,000,000 6 3/4s, 1/1/18 Aa2 1,034,837
1,000,000 6 1/2s, 1/1/11 Aa2 1,030,254
300,000 6 1/2s, 1/1/04 Aa2 309,619
200,000 6s, 1/1/20 Aa2 202,055
500,000 NY State Thruway Auth. Hwy. & Bridge Rev. Bonds,
Ser. A, AMBAC, 5s, 4/1/01 Aaa 500,987
1,875,000 NY State Urban Dev. Corp. Rev. Bonds
(Correctional Facs.), Ser. 2, 7 1/2s, 1/1/11 Aaa 1,946,667
1,670,000 Suffolk Cnty. G.O. Bonds, Ser. B,
AMBAC, 4 1/2s, 8/15/00, Prerefunded AAA 1,672,840
Triborough, Bridge & Tunnel Auth. Rev. Bonds
500,000 Ser. T, 7s, 1/1/20 Aa3 516,845
500,000 Ser. S, 7s, 1/1/11 Aa3 515,376
2,000,000 Westchester Cnty., Indl. Dev. Agcy. Civic Fac. FRB
(Boys & Girls Club), 3.95s, 2/1/24 (Bank of
New York (LOC)) A-1+ 2,000,000
----------------
35,912,163
Puerto Rico (4.7%)
-------------------------------------------------------------------------------------------------------------------
2,000,000 PR Indl. Med. & Env. Poll. Ctrl. Fac. Fin. Auth. VRDN
(Reynolds Metal Co.), 3 3/4s, 9/1/13
(ABN AMRO Bank (LOC)) VMIG1 2,000,800
----------------
Total Municipal Bonds and Notes
(cost $37,912,963) $ 37,912,963
MUNICIPAL COMMERCIAL PAPER (4.7%) (a) (cost $2,000,000)
MATURITY
PRINCIPAL AMOUNT DATE VALUE
-------------------------------------------------------------------------------------------------------------------
$2,000,000 New York State Environmental Facility, 4.45s 9/6/00 $ 2,000,000
-------------------------------------------------------------------------------------------------------------------
Total Investments (cost $39,912,963) (b) $ 39,912,963
-------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Percentages indicated are based on net assets of $42,180,561.
(RAT) The Moody's or Standard & Poor's ratings indicated are believed to
be the most recent ratings available at May 31, 2000 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, 2000. 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 Investor Service, Inc.
MIGI/VMIGI = Best quality; strong protection of cash flows, superior
liquidity and broad access to refinancing
MIG2/VMIG2 = High quality; ample protection of cash flows, liquidity
support and ability to refinance
Aaa = Extremely strong capacity to pay interest and repay principal
Aa = Strong capacity to pay interest and repay principal and differs
from the higher rated issues only in a small degree
P-1 = Superior capacity for repayment
P-2 = Strong capacity for repayment
Standard & Poor's Corp.
SP-1+ = Very strong capacity to pay principal and interest
SP-1 = Strong capacity to pay principal and interest
SP-2 = Satisfactory capacity to pay principal and interest
A-1+ = Extremely strong degree of safety
A-1 = Strong degree of safety
A-2 = Satisfactory capacity for timely repayment
(b) The aggregate identified cost on a tax basis is the same.
The rates shown on FRB and VRDN's are the current interest rates
shown at May 31, 2000, which are subject to change based on the terms of
the security.
The fund had the following industry group concentrations greater
than 10% at May 31, 2000 (as a percentage of net assets):
Education 29.5%
Utilities 14.4
Transportation 13.6
The accompanying notes are an integral part of these financial statements.
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
May 31, 2000 (Unaudited)
<S> <C>
Assets
-------------------------------------------------------------------------------------------
Investments in securities, at amortized cost (Note 1) $39,912,963
-------------------------------------------------------------------------------------------
Cash 216,408
-------------------------------------------------------------------------------------------
Interest and other receivables 555,233
-------------------------------------------------------------------------------------------
Receivable for shares of the fund sold 320,255
-------------------------------------------------------------------------------------------
Receivable for securities sold 1,415,000
-------------------------------------------------------------------------------------------
Total assets 42,419,859
Liabilities
-------------------------------------------------------------------------------------------
Distributions payable to shareholders 93,857
-------------------------------------------------------------------------------------------
Payable for shares of the fund repurchased 66,554
-------------------------------------------------------------------------------------------
Payable for compensation of Manager (Note 2) 47,855
-------------------------------------------------------------------------------------------
Payable for investor servicing and custodian fees (Note 2) 5,030
-------------------------------------------------------------------------------------------
Payable for compensation of Trustees (Note 2) 5,712
-------------------------------------------------------------------------------------------
Payable for administrative services (Note 2) 633
-------------------------------------------------------------------------------------------
Other accrued expenses 19,657
-------------------------------------------------------------------------------------------
Total liabilities 239,298
-------------------------------------------------------------------------------------------
Net assets $42,180,561
Represented by
-------------------------------------------------------------------------------------------
Paid-in capital (Note 4) $42,180,561
-------------------------------------------------------------------------------------------
Computation of net asset value and offering price
-------------------------------------------------------------------------------------------
Net asset value, offering and redemption price per share
($42,180,561 divided by 42,180,561 shares) $1.00
-------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
Six months ended May 31, 2000 (Unaudited)
<S> <C>
Tax exempt interest income $782,683
-------------------------------------------------------------------------------------------
Expenses:
-------------------------------------------------------------------------------------------
Compensation of Manager (Note 2) 91,010
-------------------------------------------------------------------------------------------
Investor servicing and custodian fees (Note 2) 36,618
-------------------------------------------------------------------------------------------
Compensation of Trustees (Note 2) 3,388
-------------------------------------------------------------------------------------------
Administrative services (Note 2) 1,804
-------------------------------------------------------------------------------------------
Reports to shareholders 4,169
-------------------------------------------------------------------------------------------
Registration fees 2,697
-------------------------------------------------------------------------------------------
Auditing 13,750
-------------------------------------------------------------------------------------------
Legal 820
-------------------------------------------------------------------------------------------
Postage 910
-------------------------------------------------------------------------------------------
Other 5,913
-------------------------------------------------------------------------------------------
Total expenses 161,079
-------------------------------------------------------------------------------------------
Expense reduction (Note 2) (32,212)
-------------------------------------------------------------------------------------------
Net expenses 128,867
-------------------------------------------------------------------------------------------
Net investment income 653,816
-------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $653,816
-------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
Six months ended Year ended
May 31 November 30
2000* 1999
--------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase in net assets
--------------------------------------------------------------------------------------------------
Operations:
--------------------------------------------------------------------------------------------------
Net investment income $ 653,816 $ 1,009,220
--------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 653,816 1,009,220
--------------------------------------------------------------------------------------------------
Distributions to shareholders:
--------------------------------------------------------------------------------------------------
From net investment income (653,816) (1,009,220)
--------------------------------------------------------------------------------------------------
Increase from capital share transactions (Note 4) 1,129,198 2,065,212
--------------------------------------------------------------------------------------------------
Total increase in net assets 1,129,198 2,065,212
Net assets
--------------------------------------------------------------------------------------------------
Beginning of period 41,051,363 38,986,151
--------------------------------------------------------------------------------------------------
End of period $42,180,561 $41,051,363
--------------------------------------------------------------------------------------------------
* Unaudited
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
-----------------------------------------------------------------------------------------------------------------
Six months
ended
Per-share May 31
operating performance (Unaudited) Year ended November 30
-----------------------------------------------------------------------------------------------------------------
2000 1999 1998 1997 1996 1995
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of year $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
-----------------------------------------------------------------------------------------------------------------
Investment operations
-----------------------------------------------------------------------------------------------------------------
Net investment income .0160 .0251 .0288 .0287 .0289 .0318
-----------------------------------------------------------------------------------------------------------------
Total from
investment operations .0160 .0251 .0288 .0287 .0289 .0318
-----------------------------------------------------------------------------------------------------------------
Less distributions:
-----------------------------------------------------------------------------------------------------------------
From net
investment income (.0160) (.0251) (.0288) (.0287) (.0289) (.0318)
-----------------------------------------------------------------------------------------------------------------
Total distributions (.0160) (.0251) (.0288) (.0287) (.0289) (.0318)
-----------------------------------------------------------------------------------------------------------------
Net asset value,
end of year $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
-----------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
-----------------------------------------------------------------------------------------------------------------
Total return at
net asset value (%)(a) 1.61* 2.55 2.91 2.91 2.93 3.23
-----------------------------------------------------------------------------------------------------------------
Net assets, end of year
(in thousands) $42,181 $41,051 $38,986 $44,101 $39,456 $38,873
-----------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(b) .40* .77 .79 .83 .88 .91
-----------------------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (%) 1.61* 2.60 2.88 2.92 2.75 3.18
-----------------------------------------------------------------------------------------------------------------
* Not annualized.
(a) Total return assumes dividend reinvestments.
(b) Includes amounts paid through expense offset arrangements.(Note 2)
</TABLE>
NOTES TO FINANCIAL STATEMENTS
May 31, 2000 (Unaudited)
Note 1
Significant accounting policies
Putnam New York Tax Exempt Money Market Fund (the "fund") is registered
under the Investment Company Act of 1940, as amended, as a
non-diversified, 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,
Inc. ("Putnam Management"), the fund's manager, a wholly owned subsidiary
of Putnam Investments, Inc., believes is consistent with maintenance of
liquidity and stability of principal and capital preservation. The fund
invests primarily in a portfolio of short-term municipal securities issued
by the state of New York and its municipalities.
The following is a summary of significant accounting policies
consistently followed by the fund in the preparation of its financial
statements. The preparation of financial statements is in conformity
with generally accepted accounting principles and requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities of the financial statements and the reported
amounts of increases and decreases in net assets from operations during
the reporting period. Actual results could differ from those estimates.
A) Security valuation The valuation of the funds' 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 and related investment income Security
transactions are accounted for on the trade date (date the order to buy
or sell is executed).
C) Federal 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, capital gains or
unrealized appreciation on securities held nor for excise tax on income
and capital gains.
D) Interest income and distributions to shareholders Interest is
recorded on the accrual basis. Income dividends are recorded daily by
the fund and are paid monthly to the shareholders.
E) Amortization of bond premium and accretion of bond discount Premiums
and discounts from purchases of short-term investments are
amortized/accreted at a constant rate until maturity.
Note 2
Management fee, administrative
services, and other transactions
Compensation of Putnam Management, for management and investment
advisory services is paid quarterly based on the average net assets of
the fund. Such fee is based on the following annual rates: 0.45% of the
first $500 million of average net assets, 0.35% of the next $500
million, 0.30% of the next $500 million, 0.25% of the next $5 billion,
0.225% of the next $5 billion, 0.205% of the next $5 billion, 0.19% of
the next $5 billion, and 0.18% thereafter.
The fund reimburses Putnam Management an allocated amount for the
compensation and related expenses of certain officers of the fund and
their staff who provide administrative services to the fund. The
aggregate amount of all such reimbursements is determined annually by
the Trustees.
Custodial functions for the fund's assets are provided by Putnam
Fiduciary Trust Company (PFTC), a subsidiary of Putnam Investments, Inc.
Investor servicing agent functions are provided by Putnam Investor
Services, a division of PFTC.
For the six months ended May 31, 2000, fund expenses were reduced by
$32,212 under expense offset arrangements with PFTC and brokerage service
arrangements. Investor servicing and custodian fees reported in the
Statement of operations exclude these credits. The fund could have
invested a portion of the assets utilized in connection with the expense
offset arrangements in an income producing asset if it had not entered into
such arrangements.
Each Trustee of the fund receives an annual Trustee fee, of which $300
has been allocated to the fund, and an additional fee for each Trustees
meeting attended. Trustees receive additional fees for attendance at
certain committee meetings.
The fund has adopted a Trustee Fee Deferral Plan (the "Deferral Plan")
which allows the Trustees to defer the receipt of all or a portion of
Trustees Fees payable on or after July 1, 1995. The deferred fees remain
invested in certain Putnam funds until distribution in accordance with
the Deferral Plan.
The fund has adopted an unfunded noncontributory defined benefit pension
plan (the "Pension Plan") covering all Trustees of the fund who have
served as a Trustee for at least five years. Benefits under the Pension
Plan are equal to 50% of the Trustee's average total retainer and
meeting fees for the three years preceding retirement. Pension expense
for the fund is included in Compensation of Trustees in the Statement of
operations. Accrued pension liability is included in Payable for
compensation of Trustees in the Statement of assets and liabilities.
For the six months ended May 31, 2000, Putnam Retail Management, Inc.,
acting as underwriter receives proceeds from contingent deferred sales
charges that apply to certain shares that have been exchanged from other
Putnam funds. Putnam Retail Management, Inc., received no monies in
contingent deferred sales charges from such redemptions.
Note 3
Purchases and sales of securities
During the six months ended May 31, 2000, cost of purchases and proceeds
from sales of investment securities other than short-term obligations
aggregated $55,111,289 and $54,943,000, respectively. There were no
purchases and sales of U.S. government obligations.
Note 4
Capital shares
At May 31, 2000, 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
---------------------------------------------------------------------------
2000 1999
---------------------------------------------------------------------------
Shares sold 28,279,601 55,489,896
---------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 603,821 928,424
---------------------------------------------------------------------------
28,883,422 56,418,320
Shares
repurchased (27,754,224) (54,353,108)
---------------------------------------------------------------------------
Net increase 1,129,198 2,065,212
---------------------------------------------------------------------------
OUR COMMITMENT TO QUALITY SERVICE
* CHOOSE AWARD-WINNING SERVICE
Putnam Investments has won the DALBAR Service Award 8 times in the past
9 years. In 1997 and 1998, Putnam was the only company to win all three
DALBAR awards: for service to investors, to financial advisors, and to
variable annuity contract holders.*
* HELP YOUR INVESTMENTS GROW
Set up a systematic program for investing with as little as $25 a month
from a Putnam money market fund or from your checking or savings
account.+
* SWITCH FUNDS EASILY
Within the same class of shares, you can move money from one account to
another 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 learn more about Putnam, visit our Web
site.
www.putnaminv.com
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
* DALBAR, Inc., an independent research firm, presents the awards to financial
services firms that provide consistently excellent service.
+ Regular investing, of course, does not guarantee a profit or protect against
a loss in a declining market.
THE PUTNAM FAMILY OF FUNDS
The following is a complete list of Putnam's open-end mutual funds.
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.
GROWTH FUNDS
Asia Pacific Growth Fund
Capital Appreciation Fund
Capital Opportunities Fund
Europe Growth Fund
Global Equity Fund
Global Growth Fund
Global Natural Resources Fund
Growth Opportunities Fund
Health Sciences Trust
International Growth Fund
International New Opportunities Fund
Investors Fund
New Century Growth Fund
New Opportunities Fund
OTC & Emerging Growth Fund
Research Fund
Tax Smart Equity Fund
Vista Fund
Voyager Fund
Voyager Fund II
GROWTH AND INCOME FUNDS
Balanced Retirement Fund
Classic Equity Fund *
Convertible Income-Growth Trust
Equity Income Fund
The George Putnam Fund of Boston
Global Growth and Income Fund
The Putnam Fund for Growth and Income
International Growth and Income Fund
New Value Fund
Small Cap Value Fund
Utilities Growth and Income Fund
INCOME FUNDS
American Government Income Fund
Diversified Income Trust
Global Governmental Income Trust
High Yield Advantage Fund [DBL. DAGGER]
High Yield Trust [DBL. DAGGER]
High Yield Trust II
Income Fund
Intermediate U.S. Government Income Fund
Money Market Fund **
Preferred Income Fund
Strategic Income Fund
U.S. Government Income Trust
TAX-FREE INCOME FUNDS
Municipal Income Fund
Tax Exempt Income Fund
Tax Exempt Money Market Fund **
Tax-Free High Yield Fund
Tax-Free Insured Fund
State tax-free income funds [SECTION MARK]
Arizona, California, Florida, Massachusetts, Michigan, Minnesota, New
Jersey, New York, Ohio and Pennsylvania
State tax-free money market funds [SECTION MARK] **
California, New York
ASSET ALLOCATION FUNDS
Putnam Asset Allocation Funds--three investment portfolios that spread
your money across a variety of stocks, bonds, and money market
investments.
The three portfolios:
Asset Allocation: Balanced Portfolio
Asset Allocation: Conservative Portfolio
Asset Allocation: Growth Portfolio
* Formerly Putnam Growth and Income Fund II
[DBL. DAGGER] Closed to new investors. Some exceptions may apply.
Contact Putnam for details.
[SECTION MARK] Not available in all states.
** An investment in a money market fund is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government agency.
Although the funds seek to preserve your investment at $1.00 per share, it
is possible to lose money by investing in the fund.
Check your account balances and current performance at www.putnaminv.com.
FUND INFORMATION
WEB SITE
www.putnaminv.com
INVESTMENT MANAGER
Putnam Investment Management, Inc.
One Post Office Square
Boston, MA 02109
MARKETING SERVICES
Putnam Retail Management, Inc.
One Post Office Square
Boston, MA 02109
CUSTODIAN
Putnam Fiduciary Trust Company
LEGAL COUNSEL
Ropes & Gray
TRUSTEES
John A. Hill, Chairman
William F. Pounds, Vice Chairman
Jameson Adkins Baxter
Hans H. Estin
Ronald J. Jackson
Paul L. Joskow
Elizabeth T. Kennan
Lawrence J. Lasser
John H. Mullin III
Robert E. Patterson
George Putnam, III
A.J.C. Smith
W. Thomas Stephens
W. Nicholas Thorndike
OFFICERS
George Putnam, III
President
Charles E. Porter
Executive Vice President
Patricia C. Flaherty
Senior Vice President
John D. Hughes
Senior Vice President and Treasurer
Lawrence J. Lasser
Vice President
Gordon H. Silver
Vice President
Ian C. Ferguson
Vice President
Brett C. Browchuk
Vice President
Stephen Oristaglio
Vice President
Jerome Jacobs
Vice President
Brian S. Torpey
Vice President and Fund Manager
Richard A. Monaghan
Vice President
Richard G. Leibovitch
Vice President
John R. Verani
Vice President
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 copy of Putnam's Quarterly Performance
Summary. For more information or to request a prospectus, call toll
free: 1-800-225-1581.
You can also learn more at Putnam Investments' Web site: www.putnaminv.com.
Shares of mutual funds are not deposits or obligations of, or guaranteed
or endorsed by, any financial institution; are not insured by the
Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board,
or any other agency; and involve risk, including the possible loss of
the principal amount invested.
[LOGO OMITTED]
PUTNAM INVESTMENTS
The Putnam Funds
One Post Office Square
Boston, Massachusetts 02109
---------------------
BULK RATE
U.S. POSTAGE PAID
PUTNAM
INVESTMENTS
---------------------
For account balances, economic forecasts, and the latest on Putnam funds, visit
www.putnaminv.com
SA055-62266 063 7/00
