Putnam
Capital
Manager
Trust
* PCM New Opportunities Fund
SEMIANNUAL REPORT
June 30, 1996
[GRAPHIC OMITTED]
BOSTON * LONDON * TOKYO
To the shareholders of Putnam Capital Manager Trust
Global equities generally outperformed fixed-income securities as
positive economic conditions in many countries boosted corporate
earnings -- and stock prices -- during the first half of Putnam Capital
Manager Trust's current fiscal year. For the period, the six months
ended June 30, 1996, the U.S. stock market led global equity
performance. Europe's high-yielding bond markets were the star
performers in the fixed-income arena. Each country's markets, of course,
responded to the unique interplay of economic, political, and interest-
rate conditions. Putnam's teamwork approach to portfolio management
enhanced the ability of analysts and portfolio managers to seek optimum
advantage from the investment opportunities that presented themselves
during the period.
EQUITIES
* United States Spurred by healthy consumer confidence, the U.S. economy
remained strong throughout the period. The stock market followed suit,
although its progress was interrupted by occasional episodes of short-
term volatility. Some of the market's unrest was the result of ongoing
concern about the timing of a Federal Reserve Board interest-rate
increase. Overall, stocks of earnings-driven growth companies --
particularly stocks of smaller companies -- outperformed value and
cyclical issues, although earnings disappointments, excessive
valuations, and rising interest rates resulted in a sharp correction for
growth stocks just after the period's close. Technology and consumer
cyclical stocks registered strong performance for the period, while
financial services and health-care sectors underperformed.
* Europe Returns from European stock markets varied during the period,
although most showed improvement. Lower interest rates boosted some
markets. So did a new focus on corporate efficiency and shareholder
value a la the belt-tightening that U.S. corporations have undergone
over the past few years. Markets in Italy, Spain, Ireland, Switzerland,
and the Netherlands were all strong performers. The U.K. was the weakest
of the major bourses as investors became increasingly concerned about
the negative impact of a change in government.
* Pacific Rim Low interest rates and growing economic strength led the
Japanese stock market to its highest level in more than two years.
Elsewhere around the Pacific Rim, stock markets showed little change,
with two key exceptions: Hong Kong and Singapore. Hong Kong remained one
of the area's most attractive markets as investors bid up property and
stock values in anticipation of its return to Chinese control in 1997.
Singapore's market underperformed significantly during the period as a
result of weakness in corporate earnings. In Australia, recent
underperformance could soon change as the new fiscally conservative
government institutes reforms that could help the corporate sector and,
in turn, boost stock prices.
FIXED INCOME
* United States The economy's ongoing strength created a difficult
environment for all fixed-income securities during the period. The
release of robust employment statistics put upward pressure on Treasury
bond yields throughout the period, causing prices to lag those in other
bond market sectors. Treasury bond prices did recover somewhat in a
week-long rally toward the end of June, although yields were higher for
the period overall. High-yield corporate bonds led U.S. fixed-income
performance, followed by mortgage-backed and asset-backed securities.
Within the U.S. government sector, mortgage-backed securities
outperformed Treasuries, helped by a decline in mortgage prepayments and
reduced market volatility.
* Global International fixed-income markets produced relatively
lackluster returns during the first half of fiscal 1996 as concerns
about accelerating economic activity, particularly in the United States
and Japan, dominated market activity. Europe's higher-yielding bond
markets, which include those of Italy, Spain, and Sweden, maintained
their momentum, consistently leading all other global markets throughout
the period. Core European markets, particularly in Germany and the
Netherlands, performed in the middle of the pack in local currency
terms, while strong economic growth and an easy monetary policy
depressed Japanese bond returns.
* High Yield Buoyed by the improving U.S. economy, high-yield bonds
provided the highest returns in the domestic fixed-income markets. Hand
in hand with the economy's continued vigor came increased corporate
profitability, which, in turn, improved the creditworthiness of high-
yield bond issuers. Equity market strength led to new stock issues, with
many issuers using proceeds to pay down debt, further reducing the
number of outstanding high-yield bonds. Continued strong demand enhanced
the value of those that remained. Putnam Management anticipates that
high-yield securities will continue to perform well as long as the
economy remains strong and equity markets maintain their performance
momentum.
PERFORMANCE SUMMARY
- ----------------------------------------------------------------------
Total return at net asset value
(as of 6/30/96)* PCM New Opportunities Fund
......................................................................
6 months 15.99%
......................................................................
1 year 44.58
......................................................................
5 years --
......................................................................
Annualized --
......................................................................
Life (since 2/1/88) 81.82**
......................................................................
Annualized 31.79
- ----------------------------------------------------------------------
* All total return figures are at net asset value. The charges and
expenses at the insurance company separate account level are not
reflected. Past performance is not indicative of future results.
** Date of inception: May 2, 1994.
PMC New Opportunities Fund
Once again, stocks from all sectors of the PCM New Opportunities Fund
portfolio turned in exceptional performance during the semiannual
period. Boosted by a market that particularly favored emerging growth
companies, astute stock and sector selections enabled the fund to tally
a 15.99% total return at net asset value for the six months ended June
30, 1996.
The fund's focus on nimble, entrepreneurial companies served it well
during the period as many of these firms rode the rising market and
specific market developments to new heights. The fund's technology
holdings, which remain its largest sector, performed especially well.
Within this sector, stocks of companies involved in networking, computer
services, and client-server software applications were the big winners.
The major change here has been the continued reduction of semiconductor
holdings, which have been weak performers of late.
Health care remains the second-largest sector, although this sector's
performance was somewhat disappointing during the period. Managed care
companies, health maintenance organizations in particular, are feeling
the effects of price competition, just as costs are rising from an
increased utilization of services and products, particularly drugs. The
only health-care companies that have continued to do exceptionally well
as a group are health-care information companies and physician practice
management companies, which operate or manage networks of medical
service providers.
Value-oriented consuming -- stocks of companies such as casual theme
restaurants, lodging, and office-product superstores -- is the next
largest portfolio sector. The fund's manager has increased the weighting
here a bit, and these holdings have performed well. Other portfolio
sectors include personal communications and media/entertainment stocks,
both of which are now benefiting from the Telecommunications Act of
1996, which eased regulation of the broadcast, cable television, and
telephone industries. While the full implications of this legislation
are not yet clear, some of the fund's investments have already benefited
from industry consolidations, along with the introduction of new
services such as local telephone networks to compete with the "Baby
Bells."
- ---------------------------------------------------------------
INVESTMENT OBJECTIVE
Capital appreciation
- ---------------------------------------------------------------
PORTFOLIO
Common stocks of companies in market sectors with above-average
long-term growth potential
- ---------------------------------------------------------------
NET ASSET VALUE
June 30, 1996 $18.13
- ---------------------------------------------------------------
<TABLE>
<CAPTION>
PCM New Opportunities Fund
Portfolio of investments owned
June 30, 1996 (Unaudited)
Common Stocks (89.2%) *
- -----------------------------------------------------------------------------------------------
Number of Shares Value
...............................................................................................
<S> <C> <C>
Advertising (0.2%)
...............................................................................................
57,500 Outdoor Systems, Inc. + $ 2,026,875
- -----------------------------------------------------------------------------------------------
Apparel (0.6%)
...............................................................................................
65,600 Tommy Hilfiger Corp. + 3,517,800
...............................................................................................
102,400 Wolverine World Wide, Inc. 3,328,000
- -----------------------------------------------------------------------------------------------
6,845,800
- -----------------------------------------------------------------------------------------------
Broadcasting (4.3%)
...............................................................................................
106,300 Chancellor Broadcasting Corp. Class A + 3,321,875
...............................................................................................
121,700 Clear Channel Communications, Inc. + 10,025,038
...............................................................................................
104,000 Emmis Broadcasting Corp. Class A + 5,200,000
...............................................................................................
97,300 Heartland Wireless Communications,
Inc. + 2,310,875
...............................................................................................
211,200 Infinity Broadcasting Corp. Class A + 6,336,000
...............................................................................................
86,700 Jacor Communications, Inc. + 2,676,863
...............................................................................................
98,100 LIN Television Corp. + 3,531,600
...............................................................................................
147,500 Paxson Communications Corp + 1,567,188
...............................................................................................
125,050 Renaissance Communications Corp. + 4,032,863
...............................................................................................
55,000 SFX Broadcasting, Inc. Class A + 2,145,000
...............................................................................................
126,200 Sinclair Broadcast Group, Inc. Class A + 5,489,700
...............................................................................................
154,000 Westwood One, Inc. + 2,348,500
...............................................................................................
71,100 Young Broadcasting Corp. Class A + 2,719,575
- -----------------------------------------------------------------------------------------------
51,705,077
- -----------------------------------------------------------------------------------------------
Building Products (0.3%)
...............................................................................................
123,300 Barnett, Inc. + 3,544,875
- -----------------------------------------------------------------------------------------------
Business Services (7.7%)
...............................................................................................
50,800 Affiliated Computer Services, Inc.
Class A + 2,387,600
...............................................................................................
190,500 Airgas, Inc. + 3,619,500
...............................................................................................
190,000 Alco Standard Corp. 8,597,500
...............................................................................................
132,700 Alternative Resources Corp. + 4,876,725
...............................................................................................
114,600 Corestaff, Inc. + 5,128,350
...............................................................................................
254,000 Corporate Express, Inc. + 10,160,000
...............................................................................................
179,600 Danka Business Systems PLC ADR
(United Kingdom) 5,253,300
...............................................................................................
177,600 First Data Corp. 14,141,400
...............................................................................................
31,000 First USA Paymentech, Inc. + 1,240,000
...............................................................................................
130,100 Input/Output, Inc. + 4,211,988
...............................................................................................
5,600 Labor Ready, Inc. + 156,800
...............................................................................................
133,700 Manpower, Inc. 5,247,725
...............................................................................................
72,300 Nova Corp/Georgia + 2,440,125
...............................................................................................
186,900 Paychex, Inc. 8,994,563
...............................................................................................
1,262,100 Rentokil Group Ord. PLC
(United Kingdom) 8,012,439
...............................................................................................
247,800 Robert Half International, Inc. + 6,907,425
...............................................................................................
16,200 Sykes Enterprises, Inc. + 797,850
...............................................................................................
12,800 Transaction Systems Architect, Inc.
Class A + 857,600
- -----------------------------------------------------------------------------------------------
93,030,890
- -----------------------------------------------------------------------------------------------
Cable Television (1.1%)
...............................................................................................
65,200 Cablevision Systems Corp. Class A + 3,015,500
...............................................................................................
173,400 Century Communications Corp.
Class A + 1,473,900
...............................................................................................
129,300 Tele-Comm Liberty Media Group, Inc.
Class A + 3,426,450
...............................................................................................
282,600 Tele-Communications Inc. Class A + 5,122,125
- -----------------------------------------------------------------------------------------------
13,037,975
- -----------------------------------------------------------------------------------------------
Computer Peripherals (0.6%)
...............................................................................................
430,100 EMC Corp. + 8,010,613
- -----------------------------------------------------------------------------------------------
Computer Services (3.0%)
...............................................................................................
299,300 America Online, Inc. + 13,094,375
...............................................................................................
285,300 Cambridge Technology Partners, Inc. + 8,701,650
...............................................................................................
131,200 CBT Group PLC ADR (Ireland) + 6,068,000
...............................................................................................
65,400 CMG Information Services, Inc. + 1,765,800
...............................................................................................
166,000 Computer Horizons Corp. + 6,557,000
...............................................................................................
14,000 Sapient Corp + 591,500
- -----------------------------------------------------------------------------------------------
36,778,325
- -----------------------------------------------------------------------------------------------
Computer Software (10.8%)
...............................................................................................
14,800 Arbor Software Corp. + 884,300
...............................................................................................
149,600 Baan Co. N.V. (Netherlands)+ 5,086,400
...............................................................................................
171,900 Business Objects S.A. ADR (France) + 6,918,975
...............................................................................................
33,500 Clarify, Inc. + 1,658,250
...............................................................................................
242,300 Computer Associates Intl., Inc. 17,263,875
...............................................................................................
280,500 Electronic Arts, Inc. + 7,503,375
...............................................................................................
78,400 Fulcrum Technologies, Inc. + 1,009,400
...............................................................................................
209,200 GT Interactive Software Corp. + 3,504,100
...............................................................................................
124,000 Inso Corp. + 6,494,500
...............................................................................................
60,000 Legato Systems, Inc. + 3,300,000
...............................................................................................
30,900 Lycos, Inc. + 343,763
...............................................................................................
125,100 McAfee Associates, Inc. + 6,129,900
...............................................................................................
111,000 Microsoft Corp. + 13,333,875
...............................................................................................
45,800 Netscape Communications Corp. + 2,851,050
...............................................................................................
291,900 Parametric Technology Corp. + 12,661,163
...............................................................................................
125,900 PeopleSoft, Inc. + 8,970,375
...............................................................................................
48,400 Project Software & Development, Inc. + 2,268,750
...............................................................................................
72,700 Rational Software Corp. + 3,907,625
...............................................................................................
14,200 Remedy, Corp. + 1,036,600
...............................................................................................
86,400 Security Dynamics Technologies, Inc. + 7,106,400
...............................................................................................
210,100 Softkey International, Inc. + 3,978,769
...............................................................................................
178,000 Synopsys, Inc. + 7,075,500
...............................................................................................
67,700 Unison Software, Inc. + 1,709,425
...............................................................................................
89,400 Vantive Corp. + 2,994,900
...............................................................................................
34,000 Viasoft, Inc. + 2,197,250
- -----------------------------------------------------------------------------------------------
130,188,520
- -----------------------------------------------------------------------------------------------
Consumer Services (0.2%)
...............................................................................................
113,600 Thermolase Corp. + 3,095,600
- -----------------------------------------------------------------------------------------------
Energy-Related (0.4%)
...............................................................................................
131,700 Thermo Electron Corp. + 5,482,013
- -----------------------------------------------------------------------------------------------
Finance (0.2%)
...............................................................................................
84,835 TCF Financial Corp. 2,820,764
- -----------------------------------------------------------------------------------------------
Financial Services (1.8%)
...............................................................................................
87,000 First USA, Inc. 4,785,000
...............................................................................................
392,000 MBNA Corp. 11,172,000
...............................................................................................
204,400 Olympic Financial Ltd. + 4,701,200
...............................................................................................
51,100 Schwab (Charles) Corp. 1,251,950
- -----------------------------------------------------------------------------------------------
21,910,150
- -----------------------------------------------------------------------------------------------
Funeral/Cemetery Services (1.7%)
...............................................................................................
240,700 Loewen Group, Inc. 7,281,175
...............................................................................................
87,900 Service Corp. 5,054,250
...............................................................................................
256,800 Stewart Enterprises, Inc. Class A 8,025,000
- -----------------------------------------------------------------------------------------------
20,360,425
- -----------------------------------------------------------------------------------------------
Gaming (2.1%)
...............................................................................................
309,000 Circus Circus Enterprises, Inc. + 12,669,000
...............................................................................................
190,800 Mirage Resorts, Inc. + 10,303,200
...............................................................................................
138,200 Rio Hotel & Casino, Inc. + 2,124,825
- -----------------------------------------------------------------------------------------------
25,097,025
- -----------------------------------------------------------------------------------------------
HMO's (1.1%)
...............................................................................................
89,300 Compdent Corp. + 4,152,450
...............................................................................................
147,000 Healthsource, Inc. + 2,572,500
...............................................................................................
149,000 Oxford Health Plans, Inc. + 6,127,625
...............................................................................................
4,000 Pacificare Health Systems, Inc. + 264,000
- -----------------------------------------------------------------------------------------------
13,116,575
- -----------------------------------------------------------------------------------------------
Health Care Information Systems (1.0%)
...............................................................................................
47,500 ABR Information Services, Inc. + 2,386,875
...............................................................................................
143,600 HBO & Co. 9,728,900
- -----------------------------------------------------------------------------------------------
12,115,775
- -----------------------------------------------------------------------------------------------
Health Care Services (5.6%)
...............................................................................................
29,300 American HomePatient, Inc. + 1,296,525
...............................................................................................
129,500 American Medical Response + 4,564,875
...............................................................................................
209,300 Apria Healthcare Group, Inc. + 6,566,788
...............................................................................................
68,900 Emcare Holdings, Inc. + 2,049,775
...............................................................................................
90,900 Emeritus Corp. + 1,602,113
...............................................................................................
313,000 Healthsouth Rehabilitation Corp. + 11,268,000
...............................................................................................
130,600 Lincare Holdings, Inc. + 5,126,050
...............................................................................................
156,500 Medaphis Corp. + 6,220,875
...............................................................................................
33,500 Owen Healthcare, Inc. + 464,813
...............................................................................................
161,100 Renal Treatment Centers, Inc. + 4,631,625
...............................................................................................
108,600 Rotech Medical Corp. + 2,117,700
...............................................................................................
100,427 Sunrise Assisted Living, Inc. + 2,410,248
...............................................................................................
26,300 Total Renal Care Holdings, Inc. + 1,111,175
...............................................................................................
303,000 Vencor, Inc. + 9,241,500
...............................................................................................
298,000 Vivra, Inc. + 9,796,750
- -----------------------------------------------------------------------------------------------
68,468,812
- -----------------------------------------------------------------------------------------------
Hospital Management (1.3%)
...............................................................................................
528,600 Health Management Assoc., Inc. + 10,704,150
...............................................................................................
233,400 Physician Reliance Network, Inc. + 5,193,150
- -----------------------------------------------------------------------------------------------
15,897,300
- -----------------------------------------------------------------------------------------------
Insurance (0.7%)
...............................................................................................
134,000 Amerin Corp. + 3,584,500
...............................................................................................
196,150 HCC Insurance Holdings, Inc. 4,413,375
- -----------------------------------------------------------------------------------------------
7,997,875
- -----------------------------------------------------------------------------------------------
Lodging (4.2%)
...............................................................................................
172,400 Doubletree Corp. + 6,120,200
...............................................................................................
103,000 Extended Stay America, Inc. + 3,244,500
...............................................................................................
329,000 HFS, Inc. + 23,030,000
...............................................................................................
22,500 Interstate Hotels Co. + 500,625
...............................................................................................
157,900 La Quinta Inns, Inc. 5,289,650
...............................................................................................
89,800 Prime Hospitality Corp. + 1,481,700
...............................................................................................
175,700 Promus Hotel Corp. + 5,205,113
...............................................................................................
143,000 Renaissance Hotel Group N.V.
(Hong Kong)+ 3,038,750
...............................................................................................
79,300 Studio Plus Hotels, Inc. + 2,616,900
- -----------------------------------------------------------------------------------------------
50,527,438
- -----------------------------------------------------------------------------------------------
Medical Management Services (1.6%)
...............................................................................................
91,800 OccuSystems, Inc. + 3,431,025
...............................................................................................
56,900 Pediatrix Medical Group, Inc. + 2,759,650
...............................................................................................
172,050 Phycor, Inc. + 6,537,900
...............................................................................................
137,300 PhyMatrix, Inc. + 3,192,225
...............................................................................................
93,100 Physicians Resource Group, Inc. + 3,107,213
- -----------------------------------------------------------------------------------------------
19,028,013
- -----------------------------------------------------------------------------------------------
Medical Supplies and Devices (2.8%)
...............................................................................................
94,200 Boston Scientific Corp. + 4,239,000
...............................................................................................
38,700 Cardiothoracic Sytems, Inc. + 512,775
...............................................................................................
49,500 Endosonics Corp. + 884,813
...............................................................................................
99,800 I-Stat Corp. + 1,883,725
...............................................................................................
72,300 ICU Medical, Inc. + 994,125
...............................................................................................
92,000 Igen, Inc. + 644,000
...............................................................................................
87,900 Medtronic, Inc. 4,922,400
...............................................................................................
184,300 Mentor Corp. Minnesota 4,699,650
...............................................................................................
57,500 Neuromedical Systems, Inc. + 862,500
...............................................................................................
106,600 Shared Medical Systems Corp. 6,849,050
...............................................................................................
153,000 Thermo Cardiosystems, Inc. + 6,846,750
- -----------------------------------------------------------------------------------------------
33,338,788
- -----------------------------------------------------------------------------------------------
Networking and Communications Equipment (11.9%)
...............................................................................................
109,900 Adtran, Inc. + 7,789,163
...............................................................................................
102,400 Ascend Communications, Inc. + 5,760,000
...............................................................................................
150,700 Cabletron Systems, Inc. + 10,341,788
...............................................................................................
205,400 Cascade Communications Corp. + 13,967,200
...............................................................................................
265,000 Cisco Systems, Inc. + 15,005,625
...............................................................................................
36,500 Diana Corp + 1,482,813
...............................................................................................
217,800 Gandalf Technologies, Inc. + 1,742,400
...............................................................................................
209,950 Glenayre Technologies, Inc. + 10,497,500
...............................................................................................
128,300 Objective Systems Integrators, Inc. + 4,682,950
...............................................................................................
91,200 P-Com, Inc. + 2,872,800
...............................................................................................
187,200 Pairgain Technologies, Inc. + 11,606,400
...............................................................................................
103,200 Premisys Communications, Inc. + 6,295,200
...............................................................................................
132,200 Shiva Corp. + 10,576,000
...............................................................................................
298,700 Stratacom, Inc. + 16,801,875
...............................................................................................
154,300 Tellabs, Inc. + 10,318,813
...............................................................................................
156,600 U.S. Robotics Corp. + 13,389,300
...............................................................................................
6,900 Verilink Corp. + 175,950
- -----------------------------------------------------------------------------------------------
143,305,777
- -----------------------------------------------------------------------------------------------
Nursing Homes (1.0%)
...............................................................................................
182,300 Genesis Health Ventures, Inc. + 5,719,663
...............................................................................................
265,050 Health Care & Retirement Corp. + 6,294,938
- -----------------------------------------------------------------------------------------------
12,014,601
- -----------------------------------------------------------------------------------------------
Office Products and Equipment (2.4%)
...............................................................................................
150,100 BT Office Products International, Inc. + 2,683,038
...............................................................................................
239,900 Boise Cascade Office Products + 8,306,538
...............................................................................................
69,300 Global DirectMail, Corp. + 2,737,350
...............................................................................................
163,200 U.S. Office Products, Co. + 6,854,400
...............................................................................................
266,200 Viking Office Products, Inc. + 8,352,025
- -----------------------------------------------------------------------------------------------
28,933,351
- -----------------------------------------------------------------------------------------------
Pharmaceuticals and Biotechnology (4.0%)
...............................................................................................
42,600 Alpha-Beta Technology, Inc. + 378,075
...............................................................................................
93,900 Amgen, Inc. + 5,070,600
...............................................................................................
218,600 Astra AB (Sweden) 9,660,603
...............................................................................................
15,000 Astra AB ADR (Sweden) 656,250
...............................................................................................
126,300 Biochem Pharmaceutical, Inc. + 4,736,250
...............................................................................................
74,300 CytoTherapeutics, Inc. + 826,588
...............................................................................................
163,100 Elan Corp. PLC ADR (Ireland)+ 9,317,088
...............................................................................................
46,200 Fuisz Technologies, Ltd. + 877,800
...............................................................................................
201,600 Gilead Sciences, Inc. + 5,090,400
...............................................................................................
177,600 IDEXX Laboratories, Inc. + 6,970,800
...............................................................................................
66,700 Martek Biosciences Corp. + 1,950,975
...............................................................................................
75,600 Neurogen Corp. + 1,946,700
...............................................................................................
32,900 Theratech, Inc. + 633,325
- -----------------------------------------------------------------------------------------------
48,115,454
- -----------------------------------------------------------------------------------------------
Publishing (0.1%)
...............................................................................................
68,900 Mecklermedia Corp. + 1,395,225
- -----------------------------------------------------------------------------------------------
Restaurants (4.0%)
...............................................................................................
250,500 Apple South, Inc. 6,700,875
...............................................................................................
125,600 Applebee's International, Inc. 4,066,300
...............................................................................................
267,300 Boston Chicken, Inc. + 8,687,250
...............................................................................................
210,670 J.D. Wetherspoon PLC (United Kingdom) 3,286,370
...............................................................................................
166,300 Landry's Seafood Restaurants, Inc. + 4,115,925
...............................................................................................
130,500 Lone Star Steakhouse & Saloon + 4,926,375
...............................................................................................
187,600 Outback Steakhouse, Inc. + 6,469,269
...............................................................................................
120,850 Papa Johns International, Inc. + 5,891,438
...............................................................................................
70,600 Rainforest Cafe, Inc. + 3,530,000
- -----------------------------------------------------------------------------------------------
47,673,802
- -----------------------------------------------------------------------------------------------
Retail (3.6%)
...............................................................................................
81,100 AutoZone, Inc. + 2,818,225
...............................................................................................
396,700 Bed Bath & Beyond, Inc. + 10,611,725
...............................................................................................
126,700 CompUSA, Inc. + 4,323,638
...............................................................................................
190,600 Office Depot, Inc. + 3,883,475
...............................................................................................
296,400 Officemax, Inc. + 7,076,550
...............................................................................................
106,700 Petsmart, Inc. + 5,094,925
...............................................................................................
168,000 Revco D.S., Inc. + 4,011,000
...............................................................................................
263,800 Staples, Inc. + 5,144,100
- -----------------------------------------------------------------------------------------------
42,963,638
- -----------------------------------------------------------------------------------------------
Semiconductors (1.9%)
...............................................................................................
186,450 Analog Devices Inc. + 4,754,475
...............................................................................................
81,685 Atmel Corp. + 2,460,761
...............................................................................................
84,000 Credence Systems Corp. + 1,128,750
...............................................................................................
84,000 Intel Corp. 6,168,750
...............................................................................................
149,100 Linear Technology Corp. 4,473,000
...............................................................................................
137,400 Maxim Integrated Products Inc. + 3,752,738
- -----------------------------------------------------------------------------------------------
22,738,474
- -----------------------------------------------------------------------------------------------
Specialty Consumer Products (0.1%)
...............................................................................................
41,200 Gemstar International Group Ltd. + 1,236,000
- -----------------------------------------------------------------------------------------------
Telephone Services (4.1%)
...............................................................................................
40,000 Brooks Fiber Properties, Inc. + 1,320,000
...............................................................................................
112,300 Intermedia Communications, Inc. + 3,621,675
...............................................................................................
383,000 LCI International, Inc. + 12,016,625
...............................................................................................
181,400 MFS Communications, Co., Inc. + 6,825,175
...............................................................................................
80,500 Mcleod, Inc. Class A + 1,932,000
...............................................................................................
45,200 Premiere Technologies, Inc. + 1,423,800
...............................................................................................
227,700 Tel-Save Holdings, Inc. + 4,838,625
...............................................................................................
71,400 U.S. Long Distance Corp. + 2,534,700
...............................................................................................
262,700 WorldCom, Inc. + 14,547,013
- -----------------------------------------------------------------------------------------------
49,059,613
- -----------------------------------------------------------------------------------------------
Wireless Communications (2.8%)
...............................................................................................
203,500 Airtouch Communications, Inc. + 5,748,875
...............................................................................................
148,900 Centennial Cellular Corp. Class A + 2,512,688
...............................................................................................
150,000 Clearnet Communications Class A
(Canada) + 2,512,500
...............................................................................................
83,500 Intercel, Inc. + 1,670,000
...............................................................................................
343,000 NEXTEL Communications, Inc. Class A + 6,538,438
...............................................................................................
124,300 Omnipoint Corp. + 3,239,569
...............................................................................................
405,200 Paging Network, Inc. + 9,724,800
...............................................................................................
43,100 Preferred Networks, Inc. + 371,738
...............................................................................................
24,900 United States Cellular Corp. + 771,900
...............................................................................................
39,200 Western Wireless Corp. Class A + 837,882
- -----------------------------------------------------------------------------------------------
33,928,390
- -----------------------------------------------------------------------------------------------
Total Common Stocks
(cost $874,268,414) $1,075,789,828
- -----------------------------------------------------------------------------------------------
Short-Term Investments (11.3%) *
- -----------------------------------------------------------------------------------------------
Principal Amount Value
...............................................................................................
$20,000,000 Falcon Asset Security, Corp. effective
yield of 5.40%, July 29, 1996 $ 19,916,000
...............................................................................................
20,000,000 Federal Home Loan Mortgage, Corp.
effective yield of 5.35%,
September 5, 1996 19,803,833
...............................................................................................
20,000,000 Federal National Mortgage Association
effective yield of 5.27%, July 19, 1996 19,947,300
...............................................................................................
30,000,000 IBM Credit, Corp. effective yield of
5.36%, July 12, 1996 29,950,867
...............................................................................................
46,277,000 Interest in $655,568,000 joint repurchase
agreement dated June 28, 1996 with
Morgan (J.P.) & Co., Inc. due July 1, 1996
with respect to various U.S. Treasury
obligations--maturity value of
$46,297,825 for an effective yield
of 5.40%. 46,297,825
- -----------------------------------------------------------------------------------------------
Total Short-Term Investments
(cost $135,915,825) $ 135,915,825
- -----------------------------------------------------------------------------------------------
Total Investments
(cost $1,010,184,239)*** $1,211,705,653
- -----------------------------------------------------------------------------------------------
* Percentages are based on net assets.
+ Non-income-producing security.
ADR, ADS or GDR after the name of a foreign holding stands for American Depository
Receipt, American Depository Shares or Global Depository Receipt, respectively, representing
ownership of foreign securities on deposit with a domestic custodian bank.
*** On June 30, 1996, the composition of unrealized appreciation and (depreciation) of
investment securities based on the aggregate cost of investments for federal income tax purposes
was as follows:
Federal Tax
Appreciation (Depreciation) Net Cost
------------------ -------------------- ---------------- ----------------
<S> <C> <C> <C> <C>
PCM New Opportunities Fund 239,860,369 (38,819,832) 201,040,537 1,010,665,116
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
</TABLE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<TABLE>
<CAPTION>
Putnam Capital Manager Trust
Statement of Assets and Liabilities
- -----------------------------------------------------------------------
June 30, 1996 (Unaudited)
PCM New
Opportunities
Fund
- -----------------------------------------------------------------------
<S> <C>
Assets
Investments in securities, at value (Note 1) $1,211,705,653
Cash 262,755
Foreign currency, at value --
Dividends, interest, and other receivables 152,586
Receivables for shares of the fund sold 2,343,022
Receivables for securities sold 9,968,383
Receivables for open forward currency contracts --
Receivables for closed forward currency contracts --
Foreign tax reclaim --
.......................................................................
Total assets 1,224,432,399
.......................................................................
Liabilities
Distributions payable to shareholders --
Payable to subcustodian (Note 2) --
Payable for variation margin --
Payable for securities purchased 17,205,370
Payable for shares of the fund repurchased --
Payable for compensation of Manager (Note 2) 1,764,511
Payable for administrative services (Note 2) 3,527
Payable for compensation of Trustees (Note 2) 748
Payable for investor servicing and
custodian fees (Note 2) 96,782
Payable for open forward currency contracts --
Payable for closed forward currency contracts --
TBA sale commitments, at value
(proceeds receivable $15,271,713) --
Other accrued expenses 19,086
.......................................................................
Total liabilities 19,090,024
.......................................................................
Net assets $1,205,342,375
.......................................................................
Represented by:
Paid in Capital (Notes 1 and 4) $ 1,008,042,980
Undistributed net investment income (Note 1) (521,761)
Accumulated net realized gain (loss) on investments
and foreign currency transactions (Note 1) (3,700,258)
Net unrealized appreciation (depreciation) of
investments and assets and liabilities in
foreign currencies 201,521,414
.......................................................................
Total--Representing net assets applicable
to capital shares outstanding $1,205,342,375
.......................................................................
Computation of net asset value
Number of shares outstanding 66,486,760
Net asset value, offering price and redemption
price per share (net assets divided by number
of shares outstanding) $ 18.13
.......................................................................
Cost of investments (Note 1) $1,010,184,239
Cost of foreign currency (Note 1) --
- -----------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
</TABLE>
<TABLE>
<CAPTION>
Putnam Capital Manager Trust
Statement of Operations
- -----------------------------------------------------------------------
Six months ended June 30, 1996 (Unaudited)
PCM New
Opportunities
Fund
- -----------------------------------------------------------------------
<S> <C>
Investment income:
Dividends $ 500,494
Interest 1,984,272
Less: foreign taxes withheld (5,040)
.......................................................................
Total investment income 2,479,726
.......................................................................
Expenses:
Compensation of Manager (Note 2) 2,812,088
Investor servicing and custodian fees (Note 2) 223,910
Compensation of Trustees (Note 2) 10,128
Administrative services (Note 2) 7,064
Auditing 11,460
Legal 7,934
Other 6,886
.......................................................................
Total expenses 3,079,470
.......................................................................
Expense reduction (Note 2) (77,983)
Net expenses 3,001,487
.......................................................................
Net investment income (loss) (521,761)
.......................................................................
Net realized gain (loss) on investments
(Notes 1 and 3) (1,463,748)
Net realized gain (loss) on futures contracts
(Notes 1 and 3) --
Net realized gain on written options
(Notes 1 and 3) --
Net realized gain (loss) on forward currency
contracts and foreign currency translation (Note 1) --
Net unrealized appreciation (depreciation) on
forward currency contracts and foreign currency
translation during the period --
Net unrealized appreciation (depreciation) of
investments, futures, and TBA
sale commitments during the period 107,972,562
.......................................................................
Net gain (loss) on investments 106,508,814
.......................................................................
Net increase (decrease) in net assets resulting
from operations $105,987,053
- -----------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
</TABLE>
<TABLE>
<CAPTION>
PUTNAM CAPITAL MANAGER TRUST
Statement of Changes in Net Assets
- -------------------------------------------------------------------------------------------
PCM New Opportunities Fund
- -------------------------------------------------------------------------------------------
Six months ended Year ended
June 30 December 31
1996* 1995
- -------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (decrease) in net assets
Operations:
Net investment income (loss) $ (521,761) $ (63,494)
Net realized gain (loss) on investment and
foreign currency transactions (1,463,748) (2,173,197)
Net unrealized appreciation (depreciation)
of investments and assets and
liabilities in foreign currencies 107,972,562 90,775,571
............................................................................................
Net increase (decrease) in net assets
resulting from operations 105,987,053 88,538,880
............................................................................................
Distributions to shareholders:
From net investment income -- (7,784)
From net realized gain on investments -- (208,404)
In excess of net realized gain -- (63,823)
Return of capital -- (73,542)
Increase from capital share
transactions (Note 4) 584,246,698 358,331,301
............................................................................................
Total increase (decrease) in net assets 690,233,751 446,516,628
............................................................................................
Net assets:
Beginning of period 515,108,624 68,591,996
............................................................................................
End of period $1,205,342,375 $515,108,624
............................................................................................
Undistributed net investment income, end
of period $ (521,761) $ --
- --------------------------------------------------------------------------------------------
* Unaudited.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
</TABLE>
<TABLE>
<CAPTION>
PUTNAM CAPITAL MANAGER TRUST
Financial Highlights
Investment Operations
Net
Realized and
Unrealized
Net Asset Value, Net Gain (Loss) Total from
Beginning of Investment on Investment
Period ended Period Income Investments Operations
<S> <C> <C> <C> <C>
PCM New Opportunities Fund
June 30, 1996+ $15.63 $(.01) $2.51 $2.50
December 31, 1995 10.82 -- 4.84 4.84
December 31, 1994* 10.00 -- (b) .82 .82
Financial Highlights (Continued)
Less Distributions
From In Excess
From Net of Net
Net Realized Realized Return
Investment Gain on Gain on of
Period ended Income Investments Investments Capital
<S> <C> <C> <C> <C>
PCM New Opportunities Fund
June 30, 1996+ $ -- $-- $-- $--
December 31, 1995 -- (.02) -- (.01)
December 31, 1994* -- -- -- --
Financial Highlights (Continued)
Total
Investment
Return at Net Assets,
Total Net Asset Value, Net Asset End of Period
Distributions End of Period Value (%)(c) (in thousands)
<S> <C> <C> <C> <C>
PCM New Opportunities Fund
June 30, 1996+ $ -- $18.13 15.99(d) $1,205,342
December 31, 1995 (.03) 15.63 44.87 515,109
December 31, 1994* -- 10.82 8.20 (d) 68,592
Financial Highlights (Continued)
Ratio of Net
Ratio of Investment
Expenses Income to Average
to Average Net Average Net Portfolio commission rate
Assets(%)(e) Assets(%) Turnover(%) paid (f)
<S> <C> <C> <C> <C>
PCM New Opportunities Fund
June 30, 1996+ .38(d) (.06)(d) 21.70(d) $.0506
December 31, 1995 .84 (.03) 30.87
December 31, 1994* .47 (b)(d) .03 (b)(d) 32.77 (d)
+ Unaudited.
* For the period May 2, 1994 (commencement of operations) to December 31, 1994.
(a) Per share net investment income has been determined on the basis of the weighted average number of shares outstanding
during the period.
(b) Reflects an expense limitation in effect during the period. As a result of such limitation, expenses of PCM New
Opportunities Fund for the period ended December 31, 1994 reflect a reduction of approximately $0.02 per share.
(c) Total investment return assumes dividend reinvestment and does not reflect the effect of sales charges.
(d) Not annualized.
(e) The ratio of expenses to average net assets for the periods ended December 31, 1995, and thereafter, includes amounts
paid through expense offset and brokerage service arrangements. Prior period ratios exclude these amounts (Note 2).
(f) Certain funds are required to disclose the average commission rate paid per share for fiscal periods beginning on or
after September 1, 1995.
</TABLE>
PUTNAM CAPITAL MANAGER TRUST
Notes to Financial Statements
June 30, 1996 (Unaudited)
Note 1
Significant
accounting
policies
Putnam Capital Manager (the "Trust") is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end management
investment company (except for PCM Utilities Growth and Income Fund,
which is non-diversified) which consists of a series of investment
portfolios (the "funds"), each of which is represented by a separate
series of shares of beneficial interest. The Trust currently offers the
following eleven funds: PCM Voyager Fund, PCM Global Growth Fund, PCM
Growth and Income Fund, PCM Global Asset Allocation Fund, PCM High Yield
Fund, PCM U.S. Government and High Quality Bond Fund, PCM Money Market
Fund, PCM Utilities Growth and Income Fund, PCM Diversified Income Fund,
PCM New Opportunities Fund and PCM Asia Pacific Growth Fund. Only the
financial results for the PCM New Opportunities Fund appear in this
report. For information on other portfolios available in the Trust,
please call Putnam Investments. The following is a summary of
significant accounting policies consistently followed by the Trust in
preparation of its financial statements. The preparation of financial
statements are in conformity with generally accepted accounting
principles and requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities. Actual
results could differ from those estimates.
A) Security valuation For all funds, other than PCM Money Market Fund,
investments for which market quotations are readily available are stated
at market value, which is determined using the last reported sale price
on the principal market on which such securities are traded, or, if no
sales are reported--as in the case of some securities traded over-the-
counter--the last reported bid price. Securities quoted in foreign
currencies are translated into U.S. dollars at the current exchange
rate. Short-term investments having remaining maturities of 60 days or
less are stated at amortized cost, which approximates market value.
Other investments, including restricted securities, are stated at fair
value following procedures approved by the Trustees. Market quotations
are not considered to be readily available for long-term corporate bonds
and notes; such investments are stated at fair value on the basis of
valuations furnished by a pricing service, approved by the Trustees, or
dealers which determine valuations for normal, institutional-size
trading units of such securities using methods based on market
transactions for comparable securities and variable relationships
between securities that are generally recognized by institutional
traders. (See Sections H and I with respect to the valuation of options,
forward currency contracts and futures.)
The valuation of PCM Money Market Fund's portfolio 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 cost
originally and thereafter amortizing any discount or premium from its
face value at a constant rate until maturity.
B) Joint trading account Pursuant to an exemptive order issued by the
Securities and Exchange Commission, the funds may transfer uninvested
cash balances into a joint trading account along with the cash of other
registered investment companies managed by Putnam Investment Management,
Inc. ("Putnam Management"), the funds' Manager, a wholly-owned
subsidiary of Putnam Investments, Inc. and certain other accounts. These
balances may be invested in one or more repurchase agreements and/or
short-term money market instruments.
C) Repurchase agreements The funds, or any joint trading account,
through their custodian, receive delivery of the underlying securities,
the market value of which at the time of purchase is required to be in
an amount at least equal to the resale price, including accrued
interest. Putnam Management is responsible for determining that the
value of these underlying securities is at all times at least equal to
the resale price, including accrued interest.
D) Security transactions and related investment income Security
transactions are accounted for on the trade date (date the order to buy
or sell is executed).
Interest income is recorded on the accrual basis. Dividend income is
recorded on the ex-dividend date except that certain dividends from
foreign securities are recorded as soon as the fund is informed of the
ex-dividend date. Discounts on zero coupon bonds, original issue,
stepped-coupon bonds and payment-in-kind bonds are accreted according to
the effective yield method.
Securities purchased or sold on a forward commitment or delayed delivery
basis may be settled a month or more after the trade date; interest
income is not accrued until settlement date. Losses may arise due to
changes in the market value of the underlying securities or if the
counterparty does not perform under the contract.
E) TBA purchase commitments Each fund, (except for PCM Money Market
Fund) may enter into "TBA" (to be announced) purchase commitments to
purchase securities for a fixed unit price at a future date beyond
customary settlement time. Although the unit price has been established,
the principal value has not been finalized. However, the amount of the
commitments will not fluctuate more than 2.0% from the principal amount.
The fund holds, and maintains until settlement date, cash or high-grade
debt obligations in an amount sufficient to meet the purchase price, or
the fund may enter into offsetting contracts for the forward sale of
other securities it owns. Income on the securities will not be earned
until settlement date. TBA purchase commitments may be considered
securities in themselves, and involve a risk of loss if the value of the
security to be purchased declines prior to the settlement date, which
risk is in addition to the risk of decline in the value of a fund's
other assets. Unsettled TBA purchase commitments are valued at the
current market value of the underlying securities, generally according
to the procedures described under "Security valuation" above.
Although a fund will generally enter into TBA purchase commitments with
the intention of acquiring securities for its portfolio or for delivery
pursuant to options contracts it has entered into, the fund may dispose
of a commitment prior to settlement if Putnam Management deems it
appropriate to do so.
F) TBA sale commitments Each fund, (except PCM Money Market Fund) may
enter into TBA sale commitments to hedge its portfolio positions or to
sell mortgage-backed securities it owns under delayed delivery
arrangements. Proceeds of TBA sale commitments are not received until
the contractual settlement date. During the time a TBA sale commitment
is outstanding, equivalent deliverable securities, or an offsetting TBA
purchase commitment deliverable on or before the sale commitment date,
are held as "cover" for the transaction.
Unsettled TBA sale commitments are valued at the current market value of
the underlying securities, generally according to the procedures
described under "Security valuation" above. The contract is "marked-to-
market" daily and the change in market value is recorded by a fund as an
unrealized gain or loss. If the TBA sale commitment is closed through
the acquisition of an offsetting purchase commitment, the fund realizes
a gain or loss on the underlying security. If the fund delivers
securities under the commitment, the fund realizes a gain or a loss from
the sale of the securities based upon the unit price established at the
date the commitment was entered into.
G) Foreign currency translation The accounting records of the Trust are
maintained in U.S. dollars. The market value of foreign securities,
currency holdings, other assets and liabilities are recorded in the
books and records of the Trust after translation to U.S. dollars based
on the exchange rates on that day. The cost of each security is
determined using historical exchange rates. Income and withholding taxes
are translated at prevailing exchange rates when accrued or incurred.
The Trust does not isolate that portion of realized or unrealized gains
or losses resulting from changes in the foreign exchange rate on
investments from fluctuations arising from changes in the market prices
of the securities. Such fluctuations are included with the net realized
and unrealized gain or loss on investments. Net realized gains and
losses on foreign currency transactions represent net exchange gains or
losses on closed forward currency contracts, disposition of foreign
currencies and the difference between the amount of investment income
and foreign withholding taxes recorded on the Trust's books and the U.S.
dollar equivalent amounts actually received or paid. Net unrealized
gains and losses on foreign currency transactions arise from changes in
the value of open forward currency contracts and assets and liabilities
other than investments at the period end, resulting from changes in the
exchange rate.
H) Forward currency contracts Each fund, except PCM Money Market Fund,
may engage in forward currency contracts, which are agreements between
two parties to buy and sell currencies at a set price on a future date,
to protect against a decline in value relative to the U.S. dollar of the
currencies in which its portfolio securities are denominated or quoted
(or an increase in the value of a currency in which securities a fund
intends to buy are denominated, when a fund holds cash reserves and
short-term investments). The U.S. dollar value of forward currency
contracts is determined using forward currency exchange rates supplied
by a quotation service. The market value of the contract will fluctuate
with changes in currency exchange rates. The contract is "marked to
market" daily and the change in market value is recorded as an
unrealized gain or loss. When the contract is closed, the fund records a
realized gain or loss equal to the difference between the value of the
contract at the time it was opened and the value at the time it was
closed. The fund could be exposed to risk if the value of the currency
changes unfavorably, if the counterparties to the contracts are unable
to meet the terms of their contracts or if the fund is unable to enter
into a closing position.
I) Futures and options contracts Each fund (other than PCM High Yield
Fund and PCM Money Market Fund) may use futures and options contracts to
hedge against changes in the values of securities the fund owns or
expects to purchase. Each fund (other than PCM High Yield Fund and PCM
Money Market Fund) may also write options on securities it owns or which
it invests to increase its current returns.
The potential risk to each fund is that the change in value of futures
and options contracts may not correspond to the change in value of the
hedged instruments. In addition, losses may arise from changes in the
value of the underlying instruments, if there is an illiquid secondary
market for the contracts, or if the counterparty to the contract is
unable to perform.
Futures contracts are valued at the quoted daily settlement prices
established by the exchange on which they trade. Exchange traded options
are valued at the last sale price, or if no sales are reported, the last
bid price for purchased options and the last ask price for written
options. Options traded over-the-counter are valued using prices
supplied by dealers.
J) Federal income taxes Each fund of the Trust is created as a separate
entity for federal income tax purposes. It is the policy of each fund to
distribute all of its taxable 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.
Therefore, no provision has been made for federal taxes on income,
capital gains or unrealized appreciation on securities held and for
excise tax on income and capital gains.
At December 31, 1995 the following funds had capital loss carryovers,
which will expire on the following dates:
Loss Carryover Expiration Date
- --------------------------------------------------------------------
PCM New Opportunities Fund 1,755,633 12/31/03
- --------------------------------------------------------------------
These capital loss carryovers may be used to offset realized gains, if
any.
K) Distributions to shareholders Distributions to shareholders from net
investment income are recorded by the funds on the ex-dividend date.
Capital gain distributions, if any, are recorded on the ex-dividend date
and paid annually. The amount and character of income and gains to be
distributed are determined in accordance with income tax regulations
which may differ from generally accepted accounting principles.
Reclassifications are made to the funds' capital accounts to reflect
income and gains available for distribution (or available capital loss
carryovers) under income tax regulations.
L) Expenses of the trust Expenses directly charged or attributable to
any fund will be paid from the assets of that fund. Generally, expenses
of the trust will be allocated among and charged to the assets of each
fund on a basis that the Trustees deem fair and equitable, which may be
based on the relative assets of each fund or the nature of the services
performed and relative applicability to each fund.
M) Beneficial Interest At June 30, 1996, insurance companies or their
separate accounts were record owners of all but a de minimis number of
the shares of each fund. From 95% to almost 100% of each fund is owned
by accounts of one group of insurance companies.
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 funds.
The following summarizes the management fee rates in effect at June 30,
1996:
<TABLE>
<CAPTION>
Rate
- ---------------------------------------------------------------------------------------------
<S> <C>
PCM New Opportunities Fund .70% of the first $500 million of average net assets,
.60% of the next $500 million
.55% of the next $500 million and
.50% of any amount over $1.5 billion
- ---------------------------------------------------------------------------------------------
</TABLE>
As part of the custodian contract between the subcustodian bank and
PFTC, the subcustodian bank has a lien on the securities of PCM Voyager
Fund and PCM Growth and Income Fund to the extent permitted by the
funds' investment restrictions to cover any advances made by the
subcustodian bank for the settlement of securities purchased by the
funds.
The Trust reimburses Putnam Management for the compensation and related
expenses of certain officers of the Trust and their staff who provide
administrative services to the Trust. The aggregate amount of all such
reimbursements is determined annually by the Trustees.
Custodial functions for each fund's assets are provided by PFTC.
Investor servicing agent functions are provided by Putnam Investor
Services, a division of PFTC.
For the six months ended June 30, 1996, each fund's expenses were
reduced under expense offset arrangements with PFTC and brokerage
service arrangements by the following amounts:
PCM New Opportunities Fund 77,983
Investor servicing and custodian fees reported in the Statement of
operations exclude these credits. Each fund could have invested a
portion of these assets utilized in connection with the expense offset
arrangements in an income producing asset if it had not entered into
such arrangements.
Trustees of the Trust receive an annual Trustees fee of $16,840 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.
Each fund adopted a Trustee Fee Deferral Plan (the "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 in each fund
and are invested in certain Putnam funds until distribution in
accordance with the Plan.
Note 3 Purchases and sales of securities
During the six months ended June 30, 1996, purchases and sales of
investment securities (other than short-term investments) were as
follows:
<TABLE>
<CAPTION>
U.S. Government
Obligations Other Securities
- -----------------------------------------------------------------------------------------------------------------------------
Purchases Sales Purchases Sales
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PCM New Opportunities Fund -- -- $645,914,536 $162,996,116
- -----------------------------------------------------------------------------------------------------------------------------
In determining net gain or loss on securities sold, the cost of securities has been determined on the identified cost basis.
Written option transactions during the period are summarized as follows:
Note 4 Capital shares
At June 30, 1996, there was an unlimited number of shares of beneficial interest authorized. Transactions in capital shares
were as follows:
Six months ended June 30 Year ended December 31
- -----------------------------------------------------------------------------------------------------------------------------
1996 1995
- -----------------------------------------------------------------------------------------------------------------------------
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PCM New Opportunities Fund
Shares sold 34,316,167 $597,719,675 29,068,100 $388,540,076
Shares issued in connection with reinvestment of distributions -- -- 30,039 353,553
.............................................................................................................................
34,316,167 597,719,675 29,098,139 388,893,629
Shares repurchased (776,388) (13,472,977) (2,490,522) (30,562,328)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase 33,539,779 $584,246,698 26,607,617 $358,331,301
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
Putnam
Capital
Manager
Trust
Fund Information
Investment Manager
Putnam Investment Management, Inc.
One Post Office Square
Boston, MA 02109
Marketing Services
Putnam Mutual Funds Corp.
One Post Office Square
Boston, MA 02109
Investor Servicing Agent
Putnam Investor Services
Mailing address:
P.O. Box 41203
Providence, RI 02940-1203
1-800-225-1581
Custodian
Putnam Fiduciary
Trust Company
Legal counsel
Ropes & Gray
Trustees
George Putnam, Chairman,
William F. Pounds, Vice Chairman,
Jameson Adkins Baxter, Hans H. Estin,
John A. Hill, Ronald J. Jackson, Elizabeth T. Kennan,
Lawrence J. Lasser, Robert E. Patterson,
Donald S. Perkins, George Putnam, III, Eli Shapiro,
A.J.C. Smith, W. Nicholas Thorndike
Putnam Investor Services has received the
DALBAR Quality Tested Service Seal for
the past six years. In more than 146,000
tests of 56 shareholder service components,
Putnam outperformed the industry
standard in every category.
AMEX 8/96
[Putnam Logo]
This report has been prepared for the shareholders of Putnam Capital
Manager Trust. It is not authorized for other distribution unless
preceded or accompanied by an effective prospectus that describes the
trust's policies, charges and other matters of interest for the
prospective investor.
2204.EDG Page 29
