Putnam
New York
Tax Exempt
Money Market Fund
ANNUAL REPORT ON PERFORMANCE AND OUTLOOK
11-30-00
[SCALE LOGO OMITTED]
FROM THE TRUSTEES
[GRAPHIC OMITTED: PHOTO OF JOHN A. HILL AND GEORGE PUTNAM III]
Dear Shareholder:
Putnam New York Tax Exempt Money Market Fund's recently concluded fiscal
year coincided with one of the more volatile market environments in
recent memory. As is typically the case under such conditions, demand
for money market securities increased substantially throughout the year.
In the process of investing the fund's swelling assets, your fund's
manager, Brian Torpey, was able to take advantage of the fact that
money-market yields have risen -- reflecting the higher short-term
interest rates implemented by the Federal Reserve Board this year. The
following report provides further details of his strategies and shows
how the fund benefited as a result.
Shortly after the end of the fund's fiscal year, Brian took on other
responsibilities within our Tax Exempt Bond Group. We are pleased to
announce that Joyce E. Dragone has been appointed as your fund's
manager. Before assuming her new position, Joyce was a municipal bond
trader in the Tax Exempt Bond Group. Her association with Putnam dates
back to 1981. She has 18 years of investment experience.
Respectfully yours,
/S/ JOHN A. HILL /S/ GEORGE PUTNAM, III
John A. Hill George Putnam, III
Chairman of the Trustees President of the Funds
January 17, 2001
REPORT FROM FUND MANAGEMENT
Brian S. Torpey
Money market investments attracted great interest during much of the 12
months ended November 30, 2000. Uncertainty about the direction of
interest rates, the stock market's volatility, and the outcome of the
U.S. presidential election late in the year convinced investors to seek
the relative safety and predictability of short-term investments.
Tax-exempt money market funds enjoyed an additional benefit: the
strength of the U.S. economy has been generating greater personal
wealth, which investors are eager to shelter from taxes.
Not surprisingly, money market assets have climbed dramatically. As of
November 30, 2000, Lipper Analytical Services reported that U.S. money
market assets grew 15.60% from a year earlier -- a considerable
increase. With this growth has come some constraints, however, as
municipal money market issuance in New York has not kept pace with
demand. We have focused our efforts on seeking to maintain Putnam New
York Tax Exempt Money Market Fund's competitive yield, stable share
value, and strategic diversification in the midst of very dynamic and
overwhelmingly positive market conditions.
Total return for 12 months ended 11/30/00
NAV
------------------------------------------------------------------
3.34%
------------------------------------------------------------------
Past performance is no indication of future results. Performance
information for longer periods and explanation of performance
calculation methods begin on page 5.
* SOUND STATE ECONOMY, POLITICAL LEADERSHIP GENERATED HISTORIC BUDGET SURPLUS
Like much of the nation, the Empire State is enjoying strong economic
growth, which has led to sizable budget surpluses. In fact, New York
City just recorded 20 consecutive years of operating surpluses, despite
a heavy debt burden. The size of its surplus for fiscal 2000 was larger
than any time in its recorded history. Most certainly, Wall Street's
continued profitability is a large factor in this happy state of
affairs.
At the state level, Governor Pataki and the legislature approved the
Debt Reform Act of 2000 after broad bipartisan efforts. The passage of
this bill, which places restrictions on the state's ability to issue new
debt, boosts New York's political credibility because it preserves the
status quo debt burden level and minimizes the risk of any increase in
the state's debt. Given these positive developments, both New York City
and New York state bonds received favorable reviews from the rating
agencies. Moody's and Standard & Poor's recently upgraded New York City
bond ratings from A3 and A- to A2 and A, respectively. Moody's also
changed its outlook for New York state from stable to positive -- a step
that typically presages a credit upgrade. These credit developments have
had a very positive impact on the prices of bonds held in your
portfolio.
* SHORT-TERM INTEREST RATES ROSE BUT SUPPLY/DEMAND IMBALANCE PRESSURED YIELDS
The Federal Reserve Board may have assumed a more neutral stance in the
final weeks of 2000, but its anti-inflationary bias pushed short-term
interest rates higher during much of your fund's fiscal year. The
federal funds rate (the rate of interest associated with borrowing among
the member banks of the Federal Reserve System) rose from 5.25% to 6.50%
during the 12 months ended November 30, 2000. The yields on new tax-free
money market securities coming to market have also risen, resulting in
incremental boosts to the fund's yield.
On the other hand, our efforts have been complicated by the fact that
investor demand far exceeds the supply of new municipal money market
issues. With rising tax revenues, the state and its municipalities have
less need to borrow to finance their operations. Yet, considering New
York's high taxes and high per capita income, state and local municipal
obligations remain one of the most attractive ways for investors to
shelter their income from taxes. Consequently, strong, steady demand in
the face of light supply is pushing yields of New York short-term
municipal bonds below the national average. (When demand is high, bond
prices rise and bond yields fall.)
* PORTFOLIO REFLECTS COMMITMENT TO PRINCIPAL STABILITY
With new investment opportunities limited, the fund ended its fiscal
year with 61% of its assets invested in variable rate demand notes
(VRDNs). VRDNs are brought to market with a 30-year maturity and a
coupon that resets at par, or face value, daily, weekly, or monthly,
depending on the structure of the municipal debt. Since the bonds reset
at par, they lend stability to the fund's net asset value and help
preserve principal. These bonds also contain a put option, which allows
the bondholder (Putnam) to tender the bonds for purchase on the date a
new interest rate is set -- thereby establishing their short-term
status. To meet such a demand, we require the issuer to have some form
of liquidity or credit support. This can take the form of a letter of
credit from a major commercial bank or a standby purchase agreement from
an insurance company.
The fund's remaining assets were split among other short-term
investments, tax-exempt notes (27%) and tax-exempt commercial paper
(8%). Tax-exempt notes provide interim financing for state and local
governments when there is a shortfall between expenses and the
collection of tax revenues. To qualify as short-term municipal
securities, these notes must mature within 13 months or 397 days from
the date of purchase. Credit quality of the issuing municipality and
yield are important factors to weigh when assessing the value of such
notes. Tax-exempt commercial paper is another conduit through which
municipalities can issue short-term debt. The fund's commercial paper
investments typically have maturities of 60 to 90 days, although
maturities can run between 30 and 120 days.
On November 30, the fund's average days to maturity was 31 days. This
maturity was shorter than the current norm but is a function of the
demand/supply dynamics shaping the current municipal bond market.
Typically, the fund's average days to maturity falls in the range of 50
to 60 days and cannot exceed 90 days.
* MORE FAVORABLE INTEREST RATE SCENARIO ANTICIPATED
The Fed did not raise interest rates in October or November, shifted to
a neutral bias in December, and in a surprise move on January 3rd, cut
short-term rates by 50 basis points. While we've always said that
monetary policy changes works with a lag of six to twelve months, this
interest rate cut should give the economy a much-needed psychological
boost.
In this environment, your fund's management team will continue to
monitor the supply of new issuance in the hope of adding longer-term
securities to extend the fund's average days to maturity. While credit
quality remains paramount, tax-exempt notes offer an attractive way to
augment the fund's income stream in the current interest rate
environment. However, the addition of longer-term securities would
become an option once yields on New York short-term municipal debt move
more into line with yields on comparable securities around the nation.
In the meantime, are confident that the current mix of investments
offers a healthy balance of stability and tax-free income for our
shareholders.
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 11/30/00, 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 (11/30/00)
Current After-tax After-tax
return* return 1 return 2
-----------------------------------------------------------------------
Passbook savings account 1.09% 0.59% 0.61%
-----------------------------------------------------------------------
Taxable money market fund
(7-day yield) 5.70 3.08 3.21
-----------------------------------------------------------------------
3-month certificate
of deposit 4.60 2.48 2.59
-----------------------------------------------------------------------
Putnam New York Tax Exempt
Money Market Fund (7-day yield) 3.43 3.43 3.43
-----------------------------------------------------------------------
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 values on passbook savings and on bank CDs
are 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.
*Sources: Fleet National Bank (passbook savings), Bank Rate Monitor
(3-month CDs), IBC/Donaghue's Money Fund Report (taxable money market
fund compound 7-day yield).
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.
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 11/30/00
Lipper New York
Tax Exempt Consumer
Fund shares Money Market Fund price
at NAV Average index
-------------------------------------------------------------------------------
1 year 3.34% 3.44% 3.44%
-------------------------------------------------------------------------------
5 years 15.49 15.71 13.26
Annual average 2.92 2.96 2.52
-------------------------------------------------------------------------------
10 years 31.90 32.72 30.19
Annual average 2.81 2.87 2.67
-------------------------------------------------------------------------------
Annual average
(Life of fund
since 10/26/87) 3.32 3.35 3.20
-------------------------------------------------------------------------------
Current return (end of period) Fund shares at NAV
-------------------------------------------------------------------------------
Current 7-day yield 1 3.43%
-------------------------------------------------------------------------------
Taxable equivalent 2 6.35
-------------------------------------------------------------------------------
Taxable equivalent 3 6.10
-------------------------------------------------------------------------------
Current 30-day yield 1 3.49
-------------------------------------------------------------------------------
Taxable equivalent 2 6.47
-------------------------------------------------------------------------------
Taxable equivalent 3 6.20
-------------------------------------------------------------------------------
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.
1 The current 7-day and 30-day yields are the two most common gauges
for measuring money market mutual fund performance. Yield data more
closely reflects the current earnings of the fund.
2 Assumes a combined 46.02% federal, New York state, and New York City
tax rate.
3 Assumes a combined 43.74% federal and New York state tax rate.
DISTRIBUTION INFORMATION 12 MONTHS ENDED 11/30/00
-------------------------------------------------------------------------------
Distributions (number) 12
-------------------------------------------------------------------------------
Income $0.032884
-------------------------------------------------------------------------------
Total $0.032884
-------------------------------------------------------------------------------
TOTAL RETURN FOR PERIODS ENDED 12/31/00 (most recent calendar quarter)
Fund shares
at NAV
-------------------------------------------------------------------------------
1 year 3.37%
-------------------------------------------------------------------------------
5 years 15.53
Annual average 2.93
-------------------------------------------------------------------------------
10 years 31.71
Annual average 2.79
-------------------------------------------------------------------------------
Annual average
(Life of fund,
since 10/26/87) 3.32
-------------------------------------------------------------------------------
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.
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
The Board of Trustees and Shareholders
Putnam New York Tax Exempt Money Market Fund
We have audited the accompanying statement of assets and liabilities of
Putnam New York Tax Exempt Money Market Fund, including the fund's
portfolio, as of November 30, 2000, and the related statement of
operations for the year then ended, statement of changes in net assets
for the year then ended and financial highlights for the year then
ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to
express an opinion on these financial statements and financial
highlights based on our audit. The statement of changes in net assets
for the year ended November 30, 1999, and the financial highlights for
each of the years in the four-year period ended November 30, 1999 were
audited by other auditors whose report dated January 7, 2000 expressed
an unqualified opinion on that financial statement and those financial
highlights.
We conducted our audit in accordance with auditing standards generally
accepted in the United States of America. Those standards require that
we plan and perform our audit to obtain reasonable assurance about
whether the financial statements and financial highlights are free of
material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as
of November 30, 2000 by correspondence with the custodian and brokers.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the
financial position of Putnam New York Tax Exempt Money Market Fund as of
November 30, 2000, the results of its operations, changes in its net
assets and financial highlights for the year then ended, in conformity
with accounting principles generally accepted in the United States of
America.
KPMG LLP
Boston, Massachusetts
December 29, 2000
<TABLE>
<CAPTION>
THE FUND'S PORTFOLIO
November 30, 2000
KEY TO ABBREVIATIONS
AMBAC -- AMBAC Indemnity Corporation
FGIC -- Financial Guaranty Insurance Company
LOC -- Letter of Credit
MBIA -- Municipal Bond Investors Assurance Corporation
RAN -- Revenue Anticipation Notes
VRDN -- Variable Rate Demand Notes
MUNICIPAL BONDS AND NOTES (88.7%) (a)
PRINCIPAL AMOUNT RATING (RAT) VALUE
<S> <C> <C> <C>
New York (88.7%)
-------------------------------------------------------------------------------------------------------------------
$ 1,800,000 Dutchess Cnty., Indl. Dev. Agency Civic Fac.
VRDN (Marist College), Ser. A, 4.4s, 7/1/28
(Bank of New York (LOC)) VMIG1 $ 1,800,000
1,000,000 Glens Falls, Indl. Dev. Agcy. VRDN (Broad St. Ctr.),
4.2s, 8/1/05 (Suntrust Bank (LOC)) A-1+ 1,000,000
3,500,000 Long Island, Pwr. Auth. Elec. Syst. VRDN, Ser. 1,
4.2s, 5/1/33 (Westduetsche Landesbank (LOC),
Bayerische Landesbank (LOC)) VMIG 3,500,000
2,200,000 Nassau Cnty., RAN, Ser. B, 6s, 3/20/01
(Bayerische Landsbank (LOC), State Street
B&T Co. (LOC)) MIGI 2,209,780
1,900,000 Niagara Cnty., Indl. Dev. Agcy. Solid Waste Disp.
VRDN (American Fuel Co.), Ser. A, 4.2s,
11/15/24 (Wachovia Bank of NC (LOC)) VMIG1 1,900,000
1,800,000 NY City, VRDN, Ser. B, FGIC, 4 1/2s, 10/1/21 VMIG1 1,800,000
1,700,000 NY City, Hlth. & Hosp. Corp. VRDN, Ser. A, 4.1s,
2/15/26 (Morgan Guaranty Trust (LOC)) VMIG1 1,700,000
1,500,000 NY City, Indl. Dev. Agcy. VRDN (Stroheim &
Romann, Inc.), 3.95s, 12/1/15 (Westdeutsche
Landesbank (LOC)) VMIG1 1,500,000
1,240,000 NY City, Muni. Wtr. Fin. Auth. Rev. Bonds, Ser. A,
MBIA, 6 1/4s, 6/15/21 (PRE) AAA 1,252,777
NY State Dorm. Auth. VRDN
2,000,000 (Oxford U. Press Inc.), 4.2s, 7/1/23
(Landesbank Hessen Thuringen (LOC)) VMIG1 2,000,000
1,700,000 (NY Pub. Library), Ser. B, MBIA, 4.1s, 7/1/28 VMIG1 1,700,000
1,910,000 NY State Energy Res. & Dev. Auth. VRDN
(Elec. & Gas), 4s, 6/1/29 (Morgan Guaranty
Trust (LOC)) VMIG1 1,910,000
1,600,000 NY State Hsg. Fin. Agcy. VRDN (Special Surgery
Hosp. Staff), Ser. A, 4.4s, 11/1/10
(Chase Manhattan Bank (LOC)) VMIG1 1,600,000
1,150,000 NY State Med. Care Fac. Fin. Agcy. Rev. Bonds
(Secured Hosp.), 7.4s, 8/15/21 (PRE) AAA 1,196,869
1,800,000 NY State Med. Care Fac. Fin. Agcy. VRDN
(Lenox Hill Hosp.), Ser. A, 4.1s, 11/1/08
(Chase Manhattan Bank (LOC)) VMIG1 1,800,000
NY State Pwr. Auth. Rev. Bonds, Ser. Y (PRE)
1,000,000 6 3/4s, 1/1/18 AAA 1,022,211
1,000,000 6 1/2s, 1/1/11 AAA 1,021,534
300,000 6 1/2s, 1/1/04 AAA 306,540
200,000 6s, 1/1/20 AAA 200,306
500,000 NY State Thruway Auth. Hwy. & Bridge
Rev. Bonds, Ser. A, AMBAC, 5s, 4/1/01 Aaa 500,408
1,875,000 NY State Urban Dev. Corp. Rev. Bonds
(Correctional Facs.), Ser. 2, 7 1/2s, 1/1/11 (PRE) AAA 1,917,597
Triborough, Bridge & Tunnel Auth. Rev. Bonds
500,000 Ser. T, 7s, 1/1/20 (PRE) AAA 511,023
500,000 Ser. S, 7s, 1/1/11 (PRE) AAA 508,674
2,000,000 Westchester Cnty., Indl. Dev. Agcy. Civic Fac.
VRDN (Boys & Girls Club), 4.4s, 2/1/24
(Bank of New York (LOC)) VMIG1 2,000,000
-------------
Total Municipal Bonds and Notes
(cost $34,857,719) $ 34,857,719
<CAPTION>
SHORT-TERM INVESTMENTS (8.4%) (a)
PRINCIPAL AMOUNT VALUE
<S> <C> <C>
-------------------------------------------------------------------------------------------------------------------
1,800,000 New York State Environmental Facility, effective
yield of 4.25%, December 6, 2000 1,800,000
1,500,000 New York State Metropolitan Transit Authority,
effective yield of 4.20%, February 8, 2001 1,500,000
-------------
Total Short-Term Investments (cost $3,300,000) $ 3,300,000
-------------------------------------------------------------------------------------------------------------------
Total Investments (cost $38,157,719) (b) $ 38,157,719
-------------------------------------------------------------------------------------------------------------------
(a) Percentages indicated are based on net assets of $39,277,657.
(RAT) The Moody's or Standard & Poor's ratings indicated are believed to
be the most recent ratings available at November 30, 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 November 30, 2000. 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 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.
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
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.
(PRE) These securities are prerefunded with callable dates within a year.
The rates shown on VRDN's are the current interest rates shown at
November 30, 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
November 30, 2000 (as a percentage of net assets): (unaudited)
Utilities 20.3%
Education 19.1
Health care 16.0
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
November 30, 2000
<S> <C>
Assets
-------------------------------------------------------------------------------------------
Investments in securities, at amortized cost (Note 1) $38,157,719
-------------------------------------------------------------------------------------------
Cash 119,921
-------------------------------------------------------------------------------------------
Interest and other receivables 369,021
-------------------------------------------------------------------------------------------
Receivable for shares of the fund sold 925,823
-------------------------------------------------------------------------------------------
Total assets 39,572,484
Liabilities
-------------------------------------------------------------------------------------------
Distributions payable to shareholders 77,815
-------------------------------------------------------------------------------------------
Payable for shares of the fund repurchased 128,028
-------------------------------------------------------------------------------------------
Payable for compensation of Manager (Note 2) 42,914
-------------------------------------------------------------------------------------------
Payable for investor servicing and custodian fees (Note 2) 6,277
-------------------------------------------------------------------------------------------
Payable for compensation of Trustees (Note 2) 6,046
-------------------------------------------------------------------------------------------
Payable for administrative services (Note 2) 1,340
-------------------------------------------------------------------------------------------
Other accrued expenses 32,407
-------------------------------------------------------------------------------------------
Total liabilities 294,827
-------------------------------------------------------------------------------------------
Net assets $39,277,657
Represented by
-------------------------------------------------------------------------------------------
Paid-in capital (Note 4) $39,277,657
-------------------------------------------------------------------------------------------
Computation of net asset value and offering price
-------------------------------------------------------------------------------------------
Net asset value, offering and redemption price per share
($39,277,657 divided by 39,277,657 shares) $1.00
-------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
Year ended November 30, 2000
<S> <C>
Tax exempt interest income $1,636,744
-------------------------------------------------------------------------------------------
Expenses:
-------------------------------------------------------------------------------------------
Compensation of Manager (Note 2) 181,316
-------------------------------------------------------------------------------------------
Investor servicing and custodian fees (Note 2) 67,953
-------------------------------------------------------------------------------------------
Compensation of Trustees (Note 2) 5,890
-------------------------------------------------------------------------------------------
Administrative services (Note 2) 3,316
-------------------------------------------------------------------------------------------
Auditing 24,028
-------------------------------------------------------------------------------------------
Other 26,193
-------------------------------------------------------------------------------------------
Total expenses 308,696
-------------------------------------------------------------------------------------------
Expense reduction (Note 2) (60,087)
-------------------------------------------------------------------------------------------
Net expenses 248,609
-------------------------------------------------------------------------------------------
Net investment income 1,388,135
-------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $1,388,135
-------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
Year ended November 30
---------------------------------
2000 1999
--------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (decrease) in net assets
--------------------------------------------------------------------------------------------------
Operations:
--------------------------------------------------------------------------------------------------
Net investment income $ 1,388,135 $ 1,009,220
--------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 1,388,135 1,009,220
--------------------------------------------------------------------------------------------------
Distributions to shareholders:
--------------------------------------------------------------------------------------------------
From net investment income (1,388,135) (1,009,220)
--------------------------------------------------------------------------------------------------
Increase (decrease) from capital share transactions (Note 4) (1,773,706) 2,065,212
--------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (1,773,706) 2,065,212
Net assets
--------------------------------------------------------------------------------------------------
Beginning of year 41,051,363 38,986,151
--------------------------------------------------------------------------------------------------
End of year $39,277,657 $41,051,363
--------------------------------------------------------------------------------------------------
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
-----------------------------------------------------------------------------------------------------
2000 1999 1998 1997 1996
-----------------------------------------------------------------------------------------------------
<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 .0329 .0251 .0288 .0287 .0289
-----------------------------------------------------------------------------------------------------
Total from
investment operations .0329 .0251 .0288 .0287 .0289
-----------------------------------------------------------------------------------------------------
Less distributions:
-----------------------------------------------------------------------------------------------------
From net
investment income (.0329) (.0251) (.0288) (.0287) (.0289)
-----------------------------------------------------------------------------------------------------
Total distributions (.0329) (.0251) (.0288) (.0287) (.0289)
-----------------------------------------------------------------------------------------------------
Net asset value,
end of year $1.00 $1.00 $1.00 $1.00 $1.00
-----------------------------------------------------------------------------------------------------
Total return at
net asset value (%)(a) 3.34 2.55 2.91 2.91 2.93
-----------------------------------------------------------------------------------------------------
Ratios and supplemental data
-----------------------------------------------------------------------------------------------------
Net assets, end of year
(in thousands) $39,278 $41,051 $38,986 $44,101 $39,456
-----------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(b) .76 .77 .79 .83 .88
-----------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (%) 3.43 2.60 2.88 2.92 2.75
-----------------------------------------------------------------------------------------------------
(a) Total return assumes dividend reinvestments.
(b) Includes amounts paid through expense offset arrangements. (Note 2)
</TABLE>
NOTES TO FINANCIAL STATEMENTS
November 30, 2000
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,
LLC ("Putnam Management"), the fund's manager, a wholly owned subsidiary
of Putnam Investments, Inc., believes is consistent with the maintenance
of liquidity, preservation of capital 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 accounting principles generally accepted in the United States of
America and requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities in 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 (which approximates
market value) 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 its original cost 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 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.
The fund has entered into an arrangement with PFTC whereby credits
realized as a result of uninvested cash balances are used to reduce a
portion of the fund's expenses. For the year ended November 30, 2000,
the fund's expenses were reduced by $60,087 under these arrangements.
Each independent Trustee of the fund receives an annual Trustee fee, of
which $279 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 year ended November 30, 2000, Putnam Retail Management, Inc., a
wholly-owned subsidiary of Putnam Investments, 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 year ended November 30, 2000, cost of purchases and proceeds
from sales (including maturities) of investment securities (all
short-term obligations) aggregated $106,547,777 and $108,012,175,
respectively.
Note 4
Capital shares
At November 30, 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:
Year ended November 30
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2000 1999
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Shares sold 47,297,346 55,489,896
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Shares issued in
connection with
reinvestment of
distributions 1,270,791 928,424
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48,568,137 56,418,320
Shares
repurchased (50,341,843) (54,353,108)
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Net increase
(decrease) (1,773,706) 2,065,212
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Note 5
Change in independent accountants
(Unaudited)
Based on the recommendation of the Audit Committee of the fund, the
Board of Trustees has determined not to retain PricewaterhouseCoopers
LLP as this fund's independent accountants and voted to appoint KPMG LLP
for the fund's fiscal year ended November 30, 2000. During the two
previous fiscal years, PricewaterhouseCoopers LLP audit reports contained
no adverse opinion or disclaimer of opinion; nor were its reports qualified
or modified as to uncertainty, audit scope, or accounting principle.
Further, in connection with its audits for the two previous fiscal years
and through July 24, 2000, there were no disagreements between the fund
and PricewaterhouseCoopers LLP on any matter of accounting principles or
practices, financial statement disclosure or auditing scope or procedure,
which if not resolved to the satisfaction of PricewaterhouseCoopers LLP would
have caused it to make reference to the disagreements in its report on the
financial statements for such years.
Note 6
New accounting pronouncement
In November 2000, the AICPA issued a revised Audit and Accounting Guide,
Audits of Investment Companies, which is effective for fiscal years
beginning after December 15, 2000. The revised Guide will require the
fund to amortize premium and accrete discount on all fixed-income
securities, and classify as interest income gains and losses realized on
paydowns on mortgage-backed securities which are presently included in
realized gain/loss. Adopting these accounting principles will not affect
the fund's net asset value, but will change the classification of
certain amounts between interest income and realized and unrealized
gain/loss in the Statement of operations. The fund has not at this time
quantified the impact, if any, resulting from the adoption of this
principle on the financial statements.
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 2001 will show the tax status of
all distributions paid to your account in calendar 2000.
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
Technology Fund
Vista Fund
Voyager Fund
Voyager Fund II
GROWTH AND INCOME FUNDS
Balanced Fund
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.putnaminvestments.com.
FUND INFORMATION
WEB SITE
www.putnaminvestments.com
INVESTMENT MANAGER
Putnam Investment Management, LLC
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
INDEPENDENT ACCOUNTANTS
KPMG LLP
TRUSTEES
John A. Hill, 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 J. 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 and Putnam's Quarterly Ranking 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.putnaminvestments.com.
NOT FDIC INSURED, MAY LOSE VALUE, NO BANK GUARANTEE
[LOGO OMITTED]
PUTNAM INVESTMENTS
The Putnam Funds
One Post Office Square
Boston, Massachusetts 02109
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PUTNAM
INVESTMENTS
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For account balances, economic forecasts, and the latest on Putnam funds, visit
www.putnaminvestments.com
AN056-67691 063 1/01
