Putnam
New York
Tax Exempt
Money Market Fund
ANNUAL REPORT ON PERFORMANCE AND OUTLOOK
11-30-99
[LOGO: BOSTON * LONDON * TOKYO]
From the Chairman
[GRAPHIC OMITTED: PHOTO OF GEORGE PUTNAM]
[copyright] Karsh, Ottawa
Dear Shareholder:
For most of the 12 months ended November 30, 1999, the money market
sustained its positive momentum. The economy continued to grow, inflation
stayed in check, and interest rates trended upward. Elsewhere in the U.S.
financial universe, the stock market continued on its upward path, while
the bond market suffered its second-worst year on record. Even within the
stock and money markets, there were pockets of volatility, especially
surrounding the Federal Reserve Board's three short-term interest rate
increases in June, August, and November. Overall, though, the tax-exempt
money market remained one of the calmest sectors in the financial
marketplace, and funds such as Putnam New York Tax Exempt Money Market
Fund continued to attract many new assets. Your fund's recent performance
reflects this relatively benign environment.
Total return for 12 months ended 11/30/99
NAV
- -------------------------------------------------------------------------
2.55%
- -------------------------------------------------------------------------
Past performance is no indication of future results. Performance
information for longer periods and explanation of performance calculation
methods begin on page 6.
* SLIGHTLY LONGER DURATION CAPTURES INCOME, AVOIDS COMPETITION
What a difference a year makes. Just last September the economy appeared
so much in danger of stalling that the Federal Reserve Board lowered
short-term interest rates three times in just seven weeks. Since then,
many world economies have strengthened, while U.S. economic growth has
remained fairly steady. New York has kept pace with the national growth
rates, enjoying solid prosperity over the period. Over the summer, the Fed
became concerned that the economy was overheating and reversed direction,
raising interest rates in June and then again in August. In response, the
pace of U.S. growth slowed to 1.6% during the second quarter of 1999, and
remained slow during the summer. The Fed left rates alone at its early
October meeting, but then economic growth seemed to shift into overdrive,
spiking up to 5.5% during the third quarter, and the Fed raised interest
rates again in November. Yields on tax-exempt money market securities
trended upward with interest rates.
The climate of economic prosperity has had a salutary effect on the New
York tax-exempt money market. Tax revenues have continued to rise and
creditworthiness has improved for both the state and New York City. Over
the past 12 months, New York City's general obligation bonds have been
upgraded once, while the state's general obligation bonds have enjoyed two
credit upgrades, the latest propelling the bonds from an A to an A+
rating.
In this environment of higher interest rates, your fund manager, Brian S.
Torpey, used duration as the key tool for managing the fund. In order to
lock in the highest available money market rates, Brian kept portfolio
duration slightly longer than the market average throughout the past six
months. Besides allowing the fund to capture additional income, this
longer duration enables the fund to avoid reinvesting assets in January, a
time when yields on tax-exempt money market securities traditionally drop.
At the beginning of the year, many tax-exempt bonds reach maturity and
demand for money market issues surges as investors seek parking places for
the resulting assets until they can find suitable reinvestment
opportunities.
* AMID LOW SUPPLY, QUALITY REMAINS KEY
Ongoing economic growth throughout the country and the state of New York
continued to raise tax revenues and limit municipalities' borrowing needs
during the annual period. Indeed, the level of tax-exempt money market
security issuance over the past year has been relatively flat. Amid this
challenging climate, your fund manager has kept superior credit quality
and capital preservation uppermost in his mind as he continued to pursue
appropriate income opportunities for the fund. As always, the portfolio
includes a wide range of top-quality tax-exempt money market securities.
In the current portfolio, over 62% of holdings are either insured or
backed by letters of credit.
In the coming months, Brian will continue to pursue appropriate income
opportunities while keeping a firm grasp on superior credit quality and
capital preservation. After the new year, when yields on tax-exempt money
market securities should decline gradually, he plans to bring portfolio
duration back to a more neutral position. As always, he will remain
focused on implementing the conservative strategies that have served
shareholders well thus far.
* UPCOMING TRANSITION ANNOUNCED
This is the last letter to you and the other shareholders of Putnam New
York Tax Exempt Money Market Fund that I will be signing. After more than
30 years as Chairman of the Trustees and President of the Putnam Funds,
the time has come for me to step aside. In June, John Hill will become
Chairman. John is currently an independent Trustee and has served on the
board for the past 14 years. In addition, my son, George Putnam, III, will
become President of the funds. I am confident that the leadership of the
funds will be in exceptionally strong hands.
I will become Chairman Emeritus, remain a shareholder, and stay in close
touch with each fund. It has been my privilege to serve you.
Respectfully yours,
/S/GEORGE PUTNAM
George Putnam
Chairman of the Trustees
January 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 11/30/99, 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 governmental 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 (11/30/99)
Current After-tax After-tax
return* return1 return2
- ---------------------------------------------------------------------------
Passbook savings account 1.24% 0.67% 0.70%
- ---------------------------------------------------------------------------
Taxable money market fund 7-day yield 5.08 2.75 2.86
- ---------------------------------------------------------------------------
3-month certificate of deposit 3.98 2.16 2.24
- ---------------------------------------------------------------------------
Putnam New York Tax Exempt
Money Market Fund (7-day yield) 2.91 2.91 2.91
- ---------------------------------------------------------------------------
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 45.77% 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: BankBoston (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 11/30/99
Lipper
New York
Tax Exempt Consumer
Fund shares Money Market price
at NAV Fund Average index
- -----------------------------------------------------------------------------
1 year 2.55% 2.59% 2.68%
- -----------------------------------------------------------------------------
5 years 15.37 15.62 12.49
Annual average 2.90 2.94 2.38
- -----------------------------------------------------------------------------
10 years 34.14 34.69 33.76
Annual average 2.98 3.02 2.95
- -----------------------------------------------------------------------------
Life of fund (since 10/26/87) 48.36 48.95 46.05
Annual average 3.31 3.35 3.18
- -----------------------------------------------------------------------------
Fund shares
at NAV
- -----------------------------------------------------------------------------
Current return (end of period)
- -----------------------------------------------------------------------------
Current 7-day yield1 2.91%
- -----------------------------------------------------------------------------
Taxable equivalent2 5.37
- -----------------------------------------------------------------------------
Taxable equivalent3 5.17
- -----------------------------------------------------------------------------
Current 30-day yield1 2.78
- -----------------------------------------------------------------------------
Taxable equivalent2 5.13
- -----------------------------------------------------------------------------
Taxable equivalent3 4.94
- -----------------------------------------------------------------------------
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 45.77% federal, New York state, and New York City tax
rate.
3 Assumes a combined 43.74% federal and New York state 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.
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 12 MONTHS ENDED 11/30/99
- -------------------------------------------------------------------
Distributions (number) 12
- -------------------------------------------------------------------
Income $0.025125
- -------------------------------------------------------------------
Total $0.025125
- -------------------------------------------------------------------
TOTAL RETURN FOR PERIODS ENDED 12/31/99 (most recent calendar quarter)
Fund shares
at NAV
- --------------------------------------------------------------------
1 year 2.60%
- --------------------------------------------------------------------
5 years 15.38
Annual average 2.90
- --------------------------------------------------------------------
10 years 33.89
Annual average 2.96
- --------------------------------------------------------------------
Life of fund 48.75
Annual average 3.31
- --------------------------------------------------------------------
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, Inc.
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.
A guide to the financial statements
These sections of the report, preceded by the Report of independent
accountants, 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.
Report of independent accountants
For the fiscal year ended November 30, 1999
To the Trustees and Shareholders of
Putnam New York Tax Exempt Money Market Fund
In our opinion, the accompanying statement of assets and liabilities,
including the fund's portfolio (except for bond ratings), and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial
position of Putnam New York Tax Exempt Money Market Fund (the "fund") at
November 30, 1999, and the results of its operations, the changes in its
net assets and the financial highlights for the periods indicated, in
conformity with generally accepted accounting principles. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the fund's management; our
responsibility is to express an opinion on these financial statements
based on our audits. We conducted our audits of these financial statements
in accordance with generally accepted auditing standards which require
that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that
our audits, which included confirmation of investments owned at November
30, 1999 by correspondence with the custodian, provide a reasonable basis
for the opinion expressed above.
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 7, 2000
<TABLE>
<CAPTION>
The fund's portfolio
November 30, 1999
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 (97.3%) (a)
PRINCIPAL AMOUNT RATING (RAT) VALUE
<S> <C> <C> <C>
New York (92.4%)
- --------------------------------------------------------------------------------------------------------------------------
$ 1,900,000 Dutchess Cnty., Indl. Dev. Agency Civic Fac. VRDN
(Marist College), Ser. A, FRB, 3.8s, 7/1/28
(Bank of New York (LOC)) A-1+ $ 1,900,000
1,400,000 Glens Falls Indl. Dev. Agcy. VRDN (Broad St. Ctr.),
3.8s, 8/1/05 (Fleet Bank of NewYork (LOC)) VMIG1 1,400,000
1,800,000 Long Island, Pwr. Auth. NY Elec. Syst. VRDN,
Ser. 1, 3.85s, 5/1/33 A-1+ 1,800,000
1,415,000 Monroe Cnty., Indl. Dev. Agcy. VRDN
(Columbia Sussex Corp.), 5s, 11/1/14
(Fifth Third Bank (LOC)) A-1+ 1,415,000
1,900,000 Niagara Cnty., Indl. Dev. Agcy. Solid Waste Disp.
VRDN (American Fuel Co.), 3.85s, 11/15/24
(Wachovia Bank of NC (LOC)) A-1+ 1,900,000
2,020,000 NY City, Cultural Res. VRDN
(Soloman R. Guggenheim),
Ser. B, 3.8s, 12/1/15 (Westdeutsche
Landesbank Girozentrale (LOC)) A-1+ 2,020,000
1,100,000 NY City, Hlth. & Hosp. Corp. VRDN,
Ser. A, 3 3/4s, 2/15/26 VMIG1 1,100,000
1,800,000 NY City, Hsg. Dev. Corp. Mtge. VRDN
(Multi-Fam. James Twr. Dev.), Ser. A, 3.7s, 7/1/05
(Citibank N.N. (LOC)) A-1+ 1,800,000
NY City, Indl. Dev. Agcy. VRDN
1,500,000 (Stroheim & Romann, Inc.), 3.8s, 12/1/15
(Westdeutsche Landesbank Girozentrale (LOC)) A-1+ 1,500,000
1,800,000 (Heavenly Rest Day Church), 3 3/4s, 7/1/21 VMIG1 1,800,000
NY City, Muni. Fin. Auth. Wtr. & Swr. Syst.
Rev. Bonds, Prerefunded, Ser. A
500,000 FGIC, 7 1/2s, 6/15/19 Aaa 518,554
500,000 MBIA, 7 1/2s, 6/15/19 Aaa 518,554
NY Metropolitan Trans. Auth. Rev. Bonds
3,645,000 (Trans. Facs. Svc. Contract),
Prerefunded, Ser. 4, 7 7/8s, 7/1/17 AAA 3,782,879
500,000 (Commuter Facs. Svc. Contract),
Prerefunded, Ser. 4, 7 1/2s, 7/1/19 AAA 518,402
1,100,000 NY State Dorm. Auth. Rev. Bonds
(Dept. of Hlth. Issue), Prerefunded, 7.7s, 7/1/20 Aaa 1,147,889
1,900,000 NY State Dorm. Auth. VRDN
(Oxford U. Press Inc.), 3 3/4s, 7/1/23 VMIG1 1,900,000
2,000,000 NY State Energy Res. & Dev. Auth. Poll. Control
VRDN (Niagara Mohawk Pwr.), Ser. A, 4s, 7/1/15 VMIG1 2,000,000
1,800,000 NY State Hsg. Fin. Agcy. VRDN (Mt. Sinai School),
Ser. A, 3.85s, 11/1/14 (Chase Manhattan
Bank (LOC)) VMIG1 1,800,000
NY State Med. Care Fac. Fin. Agcy. Rev. Bonds
500,000 (Presbyterian Hosp.), Prerefunded, Ser. A,
FHA Insd., 7.7s, 2/15/25 Aaa 522,490
410,000 (St. Lukes Hosp.), Prerefunded, Ser. B, FHA Insd.,
7.4s, 2/15/09 Aaa 421,494
1,700,000 NY State Med. Care Fac. Fin. Agcy. VRDN
(Lenox Hill Hosp.), Ser. A, 3.8s, 11/1/08
(Chase Manhattan Bank (LOC)) VMIG1 1,700,000
1,670,000 Suffolk Cnty. G.O. Bonds, Prerefunded, Ser. B,
AMBAC, 4 1/2s, 8/15/00 Aaa 1,679,590
1,800,000 Suffolk Cnty., Indl. Dev. Agcy. VRDN
(Cold Spring Harbor Lab), 3.75s, 7/1/23
(Morgan Guaranty Trust (LOC)) A-1+ 1,800,000
980,000 Triborough Bridge & Tunnel Auth. Obligation
Bonds, Prerefunded, Ser. A, 7 1/8s, 1/1/19 Aaa 993,039
2,000,000 Westchester Cnty., Indl. Dev. Agcy. Civic Fac. FRB
(Boys & Girls Club), 3.8s, 2/1/24
(Bank of New York (LOC)) VMIG1 2,000,000
--------------
37,937,891
Puerto Rico (4.9%)
- --------------------------------------------------------------------------------------------------------------------------
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)) SP-1+ 2,000,824
- --------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $39,938,715) (b) $ 39,938,715
- --------------------------------------------------------------------------------------------------------------------------
(a) Percentages indicated are based on net assets of $41,051,363.
(RAT) The Moody's or Standard & Poor's ratings indicated are believed to be the most recent ratings available at
November 30, 1999 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, 1999. Securities
rated by Putnam are indicated by "/P" and are not publicly rated. Ratings are not covered by the Report of
independent accountants.
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 are the current interest rates shown at November 30, 1999, which are subject to change based
on the terms of the security.
The fund had the following industry group concentrations greater than 10% at November 30, 1999 (as a percentage of
net assets):
Health care 16.3%
Education 13.6
Transportation 12.9
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of assets and liabilities
November 30, 1999
<S> <C>
Assets
- -----------------------------------------------------------------------------------------------
Investments in securities, at amortized cost (Note 1) $39,938,715
- -----------------------------------------------------------------------------------------------
Cash 292,649
- -----------------------------------------------------------------------------------------------
Interest and other receivables 388,876
- -----------------------------------------------------------------------------------------------
Receivable for shares of the fund sold 560,727
- -----------------------------------------------------------------------------------------------
Receivable for securities sold 100,000
- -----------------------------------------------------------------------------------------------
Total assets 41,280,967
Liabilities
- -----------------------------------------------------------------------------------------------
Distributions payable to shareholders 64,040
- -----------------------------------------------------------------------------------------------
Payable for shares of the fund repurchased 100,486
- -----------------------------------------------------------------------------------------------
Payable for compensation of Manager (Note 2) 45,414
- -----------------------------------------------------------------------------------------------
Payable for investor servicing and custodian fees (Note 2) 4,342
- -----------------------------------------------------------------------------------------------
Payable for compensation of Trustees (Note 2) 5,059
- -----------------------------------------------------------------------------------------------
Payable for administrative services (Note 2) 606
- -----------------------------------------------------------------------------------------------
Other accrued expenses 9,657
- -----------------------------------------------------------------------------------------------
Total liabilities 229,604
- -----------------------------------------------------------------------------------------------
Net assets $41,051,363
Represented by
- -----------------------------------------------------------------------------------------------
Paid-in capital (Note 4) $41,051,363
- -----------------------------------------------------------------------------------------------
Computation of net asset value and offering price
- -----------------------------------------------------------------------------------------------
Net asset value, offering and redemption price per share
($41,051,363 divided by 41,051,363 shares) $1.00
- -----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of operations
Year ended November 30, 1999
<S> <C>
Tax exempt interest income $1,264,154
- -----------------------------------------------------------------------------------------------
Expenses:
- -----------------------------------------------------------------------------------------------
Compensation of Manager (Note 2) 175,540
- -----------------------------------------------------------------------------------------------
Investor servicing and custodian fees (Note 2) 60,150
- -----------------------------------------------------------------------------------------------
Compensation of Trustees (Note 2) 4,399
- -----------------------------------------------------------------------------------------------
Administrative services (Note 2) 3,560
- -----------------------------------------------------------------------------------------------
Reports to shareholders 11,331
- -----------------------------------------------------------------------------------------------
Registration fees 3,275
- -----------------------------------------------------------------------------------------------
Auditing 27,557
- -----------------------------------------------------------------------------------------------
Legal 5,755
- -----------------------------------------------------------------------------------------------
Postage 5,488
- -----------------------------------------------------------------------------------------------
Other 516
- -----------------------------------------------------------------------------------------------
Total expenses 297,571
- -----------------------------------------------------------------------------------------------
Expense reduction (Note 2) (42,637)
- -----------------------------------------------------------------------------------------------
Net expenses 254,934
- -----------------------------------------------------------------------------------------------
Net investment income 1,009,220
- -----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $1,009,220
- -----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of changes in net assets
Year ended November 30
-------------------------------
1999 1998
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (decrease) in net assets
- ---------------------------------------------------------------------------------------------------------------
Operations:
- ---------------------------------------------------------------------------------------------------------------
Net investment income $ 1,009,220 $ 1,125,451
- ---------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 1,009,220 1,125,451
- ---------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
- ---------------------------------------------------------------------------------------------------------------
From net investment income (1,009,220) (1,125,451)
- ---------------------------------------------------------------------------------------------------------------
Increase (decrease) from capital share transactions (Note 4) 2,065,212 (5,114,693)
- ---------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 2,065,212 (5,114,693)
Net assets
- ---------------------------------------------------------------------------------------------------------------
Beginning of year 38,986,151 44,100,844
- ---------------------------------------------------------------------------------------------------------------
End of year $41,051,363 $38,986,151
- ---------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Financial highlights
(For a share outstanding throughout the period)
- --------------------------------------------------------------------------------------------------------------------------------
Per-share
operating performance Year ended November 30
- --------------------------------------------------------------------------------------------------------------------------------
1999 1998 1997 1996 1995
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of year $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------------------------
Investment operations
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income .0251 .0288 .0287 .0289 .0318
- --------------------------------------------------------------------------------------------------------------------------------
Total from
investment operations .0251 .0288 .0287 .0289 .0318
- --------------------------------------------------------------------------------------------------------------------------------
Less distributions:
- --------------------------------------------------------------------------------------------------------------------------------
From net
investment income (.0251) (.0288) (.0287) (.0289) (.0318)
- --------------------------------------------------------------------------------------------------------------------------------
Total distributions (.0251) (.0288) (.0287) (.0289) (.0318)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of year $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
- --------------------------------------------------------------------------------------------------------------------------------
Total return at
net asset value (%)(a) 2.55 2.91 2.91 2.93 3.23
- --------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year
(in thousands) $41,051 $38,986 $44,101 $39,456 $38,873
- --------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(b) .77 .79 .83 .88 .91
- --------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (%) 2.60 2.88 2.92 2.75 3.18
- --------------------------------------------------------------------------------------------------------------------------------
(a) Total return assumes dividend reinvestments.
(b) Includes amounts paid through expense offset arrangements.(Note 2)
</TABLE>
Notes to financial statements
November 30, 1999
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 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, 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. 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
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 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 and related investment income Security
transactions are accounted for on the trade date (date the order to buy or
sell is executed). Gains or losses on securities sold are determined on
the identified cost basis.
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 (and distributions of realized
gains, if any) are recorded daily by the fund and are distributed monthly
to the shareholders. Distributions of realized gains, if any, are paid at
least annually.
E) Amortization of bond premium Premiums from purchases of short-term
investments are amortized 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 year ended November 30, 1999, fund expenses were reduced by
$42,637 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 $297 has
been allocated to the fund, and an additional fee for each Trustee's
meeting attended. Trustees who are not interested persons of Putnam
Management and who serve on committees of the 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 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.
Putnam Mutual Funds Corp., acting as underwriter receives proceeds from
contingent deferred sales charges that apply to certain shares that have
been exchanged from other Putnam funds. For the year ended November 30,
1999, Putnam Mutual Funds received no monies in contingent deferred sales
charges from such redemptions.
Note 3
Purchases and sales of securities
During the year ended November 30, 1999, cost of purchases and proceeds
from sales of investment securities other than short-term investments
aggregated $215,823,043 and $214,288,500, respectively. There were no
purchases and sales of U.S. government obligations.
Note 4
Capital shares
At November 30, 1999, 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:
Year ended November 30
- -----------------------------------------------------------------------------
1999 1998
- -----------------------------------------------------------------------------
Shares sold 55,489,896 34,362,303
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 928,424 1,082,222
- -----------------------------------------------------------------------------
56,418,320 35,444,525
Shares
repurchased (54,353,108) (40,559,218)
- -----------------------------------------------------------------------------
Net increase
(decrease) 2,065,212 (5,114,693)
- -----------------------------------------------------------------------------
Federal tax information
(Unaudited)
The fund has designated 100% of dividends paid from net investment income
during the fiscal year as tax exempt for Federal income tax purposes.
The Form 1099 you receive in January 2000 will show the tax status of all
distributions paid to your account in calendar 1999.
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 [DBL. DAGGER]
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 Opportunities Fund [DBL. DAGGER]
OTC & Emerging Growth Fund
Research Fund
Tax Smart Equity Fund
Vista Fund
Voyager Fund
Voyager Fund II
GROWTH AND INCOME FUNDS
Balanced Retirement 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
Growth and Income Fund II
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 Diversified Income Trust 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 Mutual Funds Corp.
One Post Office Square
Boston, MA 02109
CUSTODIAN
Putnam Fiduciary Trust Company
LEGAL COUNSEL
Ropes & Gray
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
TRUSTEES
George Putnam, Chairman
William F. Pounds, Vice Chairman
John A. Hill, Vice Chairman
Jameson Adkins Baxter
Hans H. Estin
Ronald J. Jackson
Paul L. Joskow
Elizabeth T. Kennan
Lawrence J. Lasser
John H. Mullin III
Robert E. Patterson
George Putnam, III
A.J.C. Smith
W. Thomas Stephens
W. Nicholas Thorndike
OFFICERS
George Putnam
President
Charles E. Porter
Executive Vice President
Patricia C. Flaherty
Senior Vice President
John D. Hughes
Senior Vice President and Treasurer
Lawrence J. Lasser
Vice President
Gordon H. Silver
Vice President
Ian C. Ferguson
Vice President
Brett C. Browchuk
Vice President
Stephen Oristaglio
Vice President
Edward H. D'Alelio
Vice President
Jerome J. Jacobs
Vice President
Brian S. Torpey
Vice President and Fund Manager
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
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For account balances, economic forecasts, and the latest on Putnam funds, visit
www.putnaminv.com
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