<PAGE>
PUTNAM DIVIDEND INCOME FUND
ANNUAL REPORT
June 30, 1995
[LOGO]
BOSTON * LONDON * TOKYO
<PAGE>
PERFORMANCE HIGHLIGHTS
"Putnam Dividend Income Fund . . . isn't a market timer, but one would
think so from how cannily it has plied the preferred- stock market
over the past year or so."
- -- Morningstar Mutual Funds, May 5, 1995*
Performance should always be considered in light of a fund's
investment strategy. Putnam Dividend Income Fund is designed for
investors seeking a high level of current income which qualifies for
corporate dividends-received deduction, consistent with preservation
of capital.
FISCAL 1995 RESULTS AT A GLANCE
<TABLE><CAPTION>
<S> <C> <C> <C> <C> <C>
TOTAL RETURN NAV MARKET PRICE
- ----------------------------------------------------------------------
(change in value during
period plus reinvested
distributions)
12 months ended 6/30/95 8.77% 5.82%
- ----------------------------------------------------------------------
SHARE VALUE NAV MARKET PRICE
- ----------------------------------------------------------------------
6/30/94 $10.84 $9.750
6/30/95 10.57 9.250
- ----------------------------------------------------------------------
CAPITAL GAINS(1)
LONG- SHORT-
DISTRIBUTIONS NO. INCOME TERM TERM TOTAL
- ----------------------------------------------------------------------
Common shares 12 $0.780 $0.24 -- $1.02
Preferred shares,
Series A (250 shares) 4 374.68 2,540.76 -- 2,915.44
- ----------------------------------------------------------------------
Current return: NAV Market Price
- ----------------------------------------------------------------------
(end of period)
Current dividend rate(2) 6.81% 7.78%
Taxable equivalent
(for corporate investors)(3) 9.38 10.71
- ----------------------------------------------------------------------
<FN>
Performance data represent past results. For performance over longer
periods, see pages 8 and 9. (1) Capital gains are taxable. Investment
income may be subject to state and local taxes for corporate
investors; federal, state, and local taxes for noncorporate investors.
(2) Income portion of most recent distribution, annualized and divided
by NAV or market price at end of period. (3) Assumes a corporation
taxed at the 35% federal tax rate and that 100% of the fund's
distributions qualify for the 70% corporate dividends-received
deduction. For some investors, investment income may also be subject
to the federal alternative minimum tax.
* Morningstar is an independent research firm. It rates a fund in
relation to other funds with similar investment objectives, based
on the fund's 3-, 5-, and 10-year average annual returns,
adjusted for risk factors and sales charges. Past performance is
not indicative of future results.
</TABLE>
<PAGE>
FROM THE CHAIRMAN
[PHOTO OF GEORGE PUTNAM]
(C) KARSH, OTTAWA
DEAR SHAREHOLDER:
It is probably safe to say that the great majority of fixed- income
investors have greeted the dynamic performance of bonds in recent
months with a sense of relief. The much- improved market environment
contributed to Putnam Dividend Income Fund's positive total return for
the fiscal year ended June 30, 1995.
As we mentioned to you in our quarterly reports throughout the period,
Fund Manager Jeanne Mockard's strategic use of defensive strategies
helped moderate the effects of the market decline.
The Federal Reserve Board has already demonstrated its belief that the
economy has slowed sufficiently by lowering interest rates. Some
observers believe additional declines in short-term rates are ahead.
Whether the Fed eases further or not, Putnam believes interest rates
in general are likely to be lower than current levels by year's end.
The inflation rate could slow even more, as well, making real rates of
return look even better. In the following report, Jeanne reviews your
fund's performance and prospects in the context of the present and
projected fixed-income market environments.
Respectfully yours,
[SIGNATURE]
George Putnam
Chairman of the Trustees
August 16, 1995
<PAGE>
REPORT FROM THE FUND MANAGER
JEANNE L. MOCKARD
The fiscal year ended June 30, 1995, provided plenty of opportunity
for Putnam Dividend Income Fund to demonstrate its flexibility. We
identified, then took advantage of many opportunities as they
presented themselves during the period. Several strategic portfolio
shifts during the year helped us meet the challenges affecting both
the equity and fixed-income markets. As a result, your fund closed its
fiscal year with a total return of 8.77% at net asset value, a
striking improvement from the negative return reported at midyear.
SHIFTS TO PERPETUAL PREFERRED STOCKS
During the first half of fiscal 1995, the fund operated in an
environment of rising interest rates and generally challenging
conditions for fixed-income investors. To make matters worse, for tax
purposes, many individual and institutional investors were selling
into the already battered market, establishing losses to offset gains
from other investments.
This tax-loss selling exacerbated the market decline. However, it also
created an ample supply of attractive securities, made even more
compelling by their depressed prices. To take advantage of these
values, we increased the fund's cash level by liquidating various
common-stock positions. We also began to increase the fund's
allocation to perpetual and sinking-fund preferreds.
Technically, perpetual preferreds are equity securities, but they
behave more like fixed-income investments because of their fixed
dividend rates. Unlike bonds, however, they have no maturity dates.
This attribute makes them much more vulnerable to price changes when
interest rates are fluctuating. When interest rates rise, prices of
perpetual preferreds decline.
We offset this inclination toward price volatility with positions in
sinking-fund preferred stocks. These securities contain provisions
that require the issuing corporations to retire portions of the
outstanding issue each year after a call-protected period of time.
While these securities also carry no maturity
<PAGE>
date, the sinking fund endows them with greater price stability than
perpetual preferreds.
REBUILDING THE COMMON-STOCK SECTOR
We implemented some strategic shifts during the second half of your
fund's fiscal year. Believing that some of the sinking- fund preferred
stocks held in the portfolio had become sharply overpriced and that
some of the perpetual preferreds -- which we had bought at deep
discounts -- had recovered from their declines, we reduced the fund's
weighting in these securities, realizing profits in the process. We
have used some of the proceeds from the sale of the sinking-fund
preferreds to rebuild the portfolio's common-stock sector.
LEVERAGE ELIMINATED AT MIDYEAR
As noted in your fund's semiannual report, in December 1994 the fund's
Trustees approved the elimination of the fund's remaining $25 million
of leverage. Leverage is essentially a strategy of investing with
borrowed money; the fund had been borrowing at low short-term rates,
reinvesting the proceeds at higher long-term rates, and seeking to
profit from the difference.
Investing with borrowed funds amplifies both percentage gains and
losses. Our recommendation to eliminate the use of leverage was
prompted by substantial narrowing of the gap between short-term and
long-term interest rates. When interest rates are falling, prices of
existing fixed-income securities increase, and the fund's percentage
gains on its investments are
[BAR CHART]
TOP INDUSTRY SECTORS, 6/30/95
- ----------------------------------------------------------------------
Electric utilities 29.0%
Banks 23.3%
Combined utilites 8.0%
Oil services 7.3%
Insurance 4.8%
*Industry breakdowns reflect both common and preferred stock holdings.
Based on net assets on 6/30/95. Holdings will vary over time.
<PAGE>
magnified. Conversely, when rates are rising, percentage losses can
quickly mount.
In light of this trend, we thought it prudent to reduce the fund's
interest-rate sensitivity and concluded that the most sensible
alternative was to deleverage the fund completely. This eliminated one
element of risk to shareholders' capital. The fund retains the ability
to use leverage in the future, however, should conditions again become
favorable.
OUTLOOK: RELATIVELY STABLE BOND MARKET EXPECTED NEAR TERM
The bond market, in our view, seems likely to remain relatively stable
over the next few months. Concerns that the Federal Reserve Board
would raise interest rates again have been laid to rest for now as the
Fed lowered a key rate after the close of the period. Some observers
are even predicting further reductions before year's end.
Whether the Fed continues to ease or not, Putnam believes interest
rates in general are likely to be lower than current levels by year's
end.
TRUSTEES CONSIDER TENDER OFFER OF SHARES
The prospectus issued in the public offering of the fund's shares
indicated that in the second quarter of 1995 the Trustees of the fund
would consider whether a tender offer by the fund for its shares was
in the shareholders' best interests. In addition, the prospectus also
stated that the Trustees will consider whether to have the fund make a
tender offer if, in the last 12 weeks of its fiscal year, the fund's
shares trade at an average week-end discount to net asset value of
more than 10%. In the 12 week period ended June 30, 1995, the fund
traded at an average discount of 11.66%. Accordingly, the Trustees, at
a series of meetings held in June and July of this year, considered
whether such a tender offer would be in the best interest of
shareholders. In light of the modest size of the fund ($114 million as
of June 30, 1995) and the risk that
<PAGE>
TOP 10 HOLDINGS (6/30/95)
- ----------------------------------------------------------------------
MCDERMOTT INC.
Sinking fund, series B, $2.60, preferred
- ----------------------------------------------------------------------
FIRST CHICAGO CORP.
$3.50, adjustable-rate preferred
- ----------------------------------------------------------------------
CHEMICAL BANKING CORP.
Series L, $5.444, adjustable-rate preferred
- ----------------------------------------------------------------------
DETROIT EDISON CO.
$1.9375, dep. shares, preferred
- ----------------------------------------------------------------------
PUGET SOUND POWER & LIGHT CO.
Series B, $1.525, adjustable-rate preferred
- ----------------------------------------------------------------------
BOISE CASCADE CORP.
Series F, $2.35, dep. shares, preferred
- ----------------------------------------------------------------------
GEORGIA POWER CO.
Series 93-2, $1.3175, adjustable-rate preferred
- ----------------------------------------------------------------------
LASMO PLC ADS
Series A, $2.50, preferred
- ----------------------------------------------------------------------
CONNECTICUT LIGHT & POWER CO.
Sinking fund, series 92, $3.615, preferred
- ----------------------------------------------------------------------
CINCINNATI GAS & ELECTRIC CO.
$9.15, preferred
- ----------------------------------------------------------------------
These holdings represent 29.8% of the fund's net assets. Portfolio
holdings will vary over time.
expense ratios would increase if a tender offer were made, the cost
and expenses of a tender offer and the lack of benefits to
shareholders remaining in the fund after completion of the offer, the
Trustees decided that making a tender offer would not currently be in
the best interest of 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 6/30/95, there is no guarantee
the fund will continue to hold these securities in the future.
Investments in non-U.S. securities may be subject to certain risks
such as currency fluctuations and political developments.
<PAGE>
PERFORMANCE SUMMARY
This section provides, at a glance, information about your fund's
performance. Total return shows how the value of the fund's shares
changed over time, assuming you held the shares through the entire
period and reinvested all distributions back into the fund. We show
total return in two ways: on a cumulative long-term basis and on
average how the fund might have grown each year over varying periods.
TOTAL RETURN FOR PERIODS ENDED 6/30/95
<TABLE><CAPTION>
<S> <C> <C> <C> <C>
MERRILL LYNCH
PERPETUAL STANDARD
MARKET PREFERRED & POOR'S
NAV PRICE INDEX 500 INDEX
- ----------------------------------------------------------------------
1 year 8.77% 5.82% 12.61% 25.99%
- ----------------------------------------------------------------------
3 years 28.71 6.82 23.48 45.14
Annual average 8.78 2.22 7.28 13.22
- ----------------------------------------------------------------------
5 years 80.52 49.05 71.36 76.69
Annual average 12.54 8.31 11.37 12.06
- ----------------------------------------------------------------------
Life of fund 77.82 41.05 75.23 87.29
(since 9/28/89)
- ----------------------------------------------------------------------
Annual average 10.53 6.16 10.24 11.53
- ----------------------------------------------------------------------
<FN>
Performance data represent past results and is no indication of future
results. Investment returns and principal value will fluctuate so an
investor's shares, when sold, may be worth more or less than their
original cost. Fund performance data do not take into account any
adjustment for taxes payable on reinvested distributions.
</TABLE>
<PAGE>
TERMS AND DEFINITIONS
NET ASSET VALUE (NAV) is the value of all your fund's assets, minus
any liabilities, the liquidation preference and cumulative undeclared
dividends paid on the auction preferred shares, divided by the number
of outstanding common shares.
MARKET PRICE is the current trading price of one share of the fund.
Market prices are set by transactions between buyers and sellers on
the New York Stock Exchange.
COMPARATIVE BENCHMARKS
MERRILL LYNCH PERPETUAL PREFERRED INDEX is an unmanaged list of
perpetual preferred stocks that is commonly used as a general measure
of performance for the preferred-stock market. The index assumes
reinvestment of all distributions and does not take into account
brokerage commissions or other costs. The securities that make up the
fund's portfolio do not match those in the index.
STANDARD & POOR'S 500 INDEX is an unmanaged list of common stocks that
is frequently used as a general measure of stock market performance.
Report of Independent Accountants
for the year ended June 30, 1995
<PAGE>
REPORT OF INDEPENDENT ACCOUNTS
for the year ended June 30, 1995
To the Trustees and Shareholders of
Putnam Dividend Income Fund
We have audited the accompanying statement of assets and liabilities
of Putnam Dividend Income Fund, including the portfolio of investments
owned, as of June 30, 1995, the related statement of operations for
the year then ended, the statement of changes in net assets for each
of the two years in the period then ended, and the "Financial
Highlights" for each of the five years in the period 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
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the 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 June 30, 1995, by
correspondence with the custodian. 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 audits provide 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 Dividend Income Fund as of June 30, 1995,
the results of its operations for the year then ended, the changes in
its net assets for each of the two years in the period then ended, and
the "Financial Highlights" for each of the five years in the period
then ended, in conformity with generally accepted accounting
principles.
Coopers & Lybrand L.L.P.
Boston, Massachusetts
August 17, 1995
<PAGE>
PORTFOLIO OF INVESTMENTS OWNED
June 30, 1995
<TABLE><CAPTION>
<C> <S> <C>
PREFERRED STOCKS (84.4%)*
NUMBER OF SHARES VALUE
AUTOMOBILES (2.6%)
- ----------------------------------------------------------------------
65,500 General Motors Corp. Ser. B, $2.28125
dep. shs. Preferred (pfd.) $ 1,743,938
45,000 General Motors Corp. Ser. G, $2.28, pfd. 1,226,250
------------
2,970,188
BANKS (23.3%)
- ----------------------------------------------------------------------
10,000 Ahmanson (H.F.) & Co. Ser. B, $2.40,
dep. shs. pfd. 258,750
14,200 Ahmanson (H.F.) & Co. Ser. C, $2.10,
dep. shs. pfd. 363,875
20,000 Bank of Boston Corp. Ser. E, $2.15,
dep. shs. pfd. 515,000
60,000 BankAmerica Corp. Ser. H, $2.25, pfd. 1,567,500
38,200 BankAmerica Corp. Ser. K, $2.09375, pfd. 983,650
18,600 BankAmerica Corp. Ser. L, $2.04, dep. shs. pfd. 474,300
70,000 Bankers Trust New York Corp. Ser. Q,
$1.47475, Adjustable Rate Preferred (ARP)(TR) 1,452,500
19,000 Chase Manhattan Corp. Ser. H, $2.44, pfd. 522,500
25,100 Chase Manhattan Corp. Ser. I, $2.71, pfd. 753,000
39,000 Chase Manhattan Corp. Ser. J, $2.27, pfd. 999,375
33,800 Chase Manhattan Corp. Ser. M, $2.10, pfd. 866,125
80,000 Chase Manhattan Corp. Ser. N, $1.4025, ARP 1,770,000
28,000 Chemical Banking Corp. $1.98, dep. shs. pfd. 710,500
46,262 Chemical Banking Corp. Ser. L, $5.444, ARP 4,099,970
45,000 Citicorp Ser. 19, $1.491, ARP 961,875
13,000 Citicorp Ser. 3, $7.00, ARP 1,235,000
10,000 Citicorp Ser. 8-B, $8.25, pfd. 975,000
18,500 Citicorp Ser. 9, $2.28, pfd. 469,438
84,984 First Chicago Corp. $3.50, ARP 4,206,708
13,000 First Chicago Corp. Ser. E, $2.1125,
dep. shs. pfd. 331,500
58,300 First Interstate Bancorp Ser. F, $2.46875,
dep. shs. pfd. 1,530,375
26,100 Great Western Financial Corp. $2.075,
dep. shs. pfd. 672,075
40,000 Sumitomo Bank Ltd. Ser. A, $2.03125,
dep. shs. pfd. 975,000
------------
26,694,016
BROADCASTING (1.1%)
- ----------------------------------------------------------------------
49,000 Newscorp Overseas Corp. Ser. A, $2.16, pfd. 1,206,625
COMBINED UTILITIES (8.0%)
- ----------------------------------------------------------------------
10,000 Baltimore Gas & Electric Co. Ser. 93, $6.70, pfd. 956,250
9,694 Baltimore Gas & Electric Co. Sinking Fund,
Ser. 87, $6.75, pfd. 911,236
20,000 Cincinnati Gas & Electric Co. $9.15, pfd. 2,115,000
77,000 New York State Electric & Gas Corp.
Ser. B, $1.3675, ARP 1,578,500
7,000 Public Service of Colorado, $7.15, pfd. 600,250
6,750 Public Service Electric & Gas Co. $6.92, pfd. 573,750
5,000 Public Service Electric & Gas Co. $7.70, pfd. 495,000
19,000 Public Service Electric & Gas Co.
Sinking Fund, $7.44, pfd. 1,859,625
------------
9,089,611
<PAGE>
PREFERRED STOCKS
NUMBER OF SHARES VALUE
ELECTRIC UTILITIES (29.0%)
- ----------------------------------------------------------------------
8,885 Arkansas Power & Light Co. Sinking
Fund, $8.52, pfd. $ 884,058
4,950 Cleveland Electric Illuminating Co.
Sinking Fund, Ser. M, $7.00, ARP 465,300
10,000 Commonwealth Edison Co. Sinking Fund,
$9.00, pfd. 1,013,750
50,000 Connecticut Light & Power Co. Sinking
Fund, Ser. 92, $3.615, pfd. 2,462,500
140,000 Detroit Edison Co. $1.9375, dep. shs. pfd. 3,447,500
8,500 Detroit Edison Co. $7.45, pfd. 803,250
6,600 Duke Power Co. Ser. A, $5.50, ARP 589,875
50,000 Georgia Power Co. $1.9875, pfd. 1,256,250
145,000 Georgia Power Co. Ser. 93-2, $1.3175, ARP 3,099,375
8,916 Gulf States Utilities Co. $7.56, pfd. 722,196
11,000 Houston Light & Power $8.12, pfd. 1,091,750
50,000 Long Island Lighting Co. Sinking Fund,
Ser. NN, $1.95, pfd. 1,000,000
9,000 Louisiana Power & Light Co.
Sinking Fund, $7.00, pfd. 884,250
43,000 Mississippi Power Co. $1.58, dep. shs. pfd. 865,375
20,000 Niagara Mohawk Power Corp. $2.375, pfd. 527,500
15,200 Niagara Mohawk Power Corp. Ser. A, $1.625, ARP 304,000
6,600 Northern States Power Co. Ser. A, $5.673, ARP 547,800
14,100 Northern States Power Co. Ser. B, $5.52, ARP 1,214,363
16,000 PSI Energy, Inc. $1.86, pfd. 396,000
13,300 PacifiCorp Sinking Fund, $7.12, pfd. 1,280,125
72,000 Puget Sound Power & Light Co. $1.96875, pfd. 1,845,000
147,700 Puget Sound Power & Light Co. Ser. B,
$1.525, ARP 3,175,550
66,000 Texas Utilities Electric Co. Ser. A,
$1.875, dep. shs. pfd. 1,534,500
21,400 Texas Utilities Electric Co. Ser. B, $7.00, ARP 1,947,400
6,180 Virginia Electric & Power Co. $7.20, pfd. 541,523
13,604 Virginia Electric & Power Co. Sinking
Fund, $7.30, pfd. 1,271,973
------------
33,171,163
FINANCE (2.3%)
- ----------------------------------------------------------------------
40,000 Bear Stearns & Co. Ser. A, $3.025, ARP 1,640,000
9,000 Bear Stearns & Co. Ser. B, $1.97, dep. shs. pfd. 218,250
4,400 Merrill Lynch & Co., Inc. Ser. A, $2.25,
dep. shs. pfd. 121,000
25,000 Morgan Stanley Inc. $2.22, dep. shs. pfd. 640,624
------------
2,619,874
FOREST PRODUCTS (2.7%)
- ----------------------------------------------------------------------
120,000 Boise Cascade Corp. Ser. F, $2.35,
dep. shs. pfd. 3,120,000
GAS UTILITIES (0.6%)
- ----------------------------------------------------------------------
26,000 Phillips Gas Co. Ser. A, $2.33, pfd. 698,750
HEALTH CARE (0.8%)
- ----------------------------------------------------------------------
10 Rhone Poulenc Rorer Ser. 3, $5.84, dep. shs. pfd. 960,000
INSURANCE (4.8%)
- ----------------------------------------------------------------------
48,000 Progressive Corp. Ser. A, $2.34375, pfd. 1,224,000
50,000 SunAmerica Inc. Ser. B, $2.3125, pfd. 1,306,250
9,000 SunAmerica Inc. Ser. C, $7.00, ARP 882,000
80,000 Travelers Group Ser. D, $2.3125, dep. shs. pfd. 2,110,000
------------
5,522,250
<PAGE>
PREFERRED STOCKS
NUMBER OF SHARES VALUE
OIL SERVICES (7.3%)
- ----------------------------------------------------------------------
111,000 LASMO PLC ADS Ser. A, $2.50, pfd. $ 2,664,000
190,537 McDermott Inc. Sinking Fund, Ser. B, $2.60, pfd. 5,668,475
------------
8,332,475
PAPER (0.4%)
- ----------------------------------------------------------------------
20,000 James River Corp. Ser. O, $2.0625, dep. shs. pfd. 487,500
STEEL (0.4%)
- ----------------------------------------------------------------------
10,000 USX Corp. $3.75, ARP 495,000
WATER UTILITIES (1.1%)
- ----------------------------------------------------------------------
12,000 United Water Resources, Inc. Ser. B,
$7.625, pfd. 1,197,000
- ----------------------------------------------------------------------
TOTAL PREFERRED STOCKS (cost $100,994,044) $96,564,452
- ----------------------------------------------------------------------
COMMON STOCKS (7.3%)*
NUMBER OF SHARES VALUE
COMBINED UTILITIES (2.1%)
- ----------------------------------------------------------------------
43,000 Pacific Gas & Electric Co. $ 1,247,000
56,000 Rochester Gas & Electric Corp. 1,190,000
------------
2,437,000
ELECTRIC UTILITIES (4.2%)
- ----------------------------------------------------------------------
50,000 Entergy Corp. 1,206,250
58,000 Potomac Electric Power Co. 1,247,000
41,000 Public Service Enterprise Group, Inc. 1,137,750
34,000 Texas Utilities Co. 1,168,750
------------
4,759,750
RETAIL (1.0%)
- ----------------------------------------------------------------------
75,000 K mart Corp. 1,096,875
- ----------------------------------------------------------------------
TOTAL COMMON STOCKS (cost $7,997,024) $ 8,293,625
- ----------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS (1.9%)* (COST $2,080,000)
NUMBER OF SHARES VALUE
OILS (1.9%)
- ----------------------------------------------------------------------
40,000 Unocal Corp. $3.50, cv. pfd. 144A $ 2,110,000
SHORT-TERM INVESTMENTS (5.8%)* (COST $6,682,154)
PRINCIPAL AMOUNT VALUE
$6,681,000 Interest in $453,426,000 joint repurchase
agreement dated June 30, 1995 with Lehman
Brothers Inc., due July 3, 1995 with respect
to various U.S Treasury obligations --
maturity value of $6,684,463 for an effective
yield of 6.22% $ 6,682,154
- ----------------------------------------------------------------------
TOTAL INVESTMENTS (cost $117,753,222)*** $113,650,231
- ----------------------------------------------------------------------
<PAGE>
NOTES
- ----------------------------------------------------------------------
* Percentages indicated are based on net assets of $114,357,309,
which correspond to a net asset value per share of $10.57.
*** The aggregate identified cost for federal income tax purposes is
$117,800,561 resulting in gross unrealized appreciation and
depreciation of $1,498,920, and $5,649,250, respectively, or net
unrealized depreciation of $4,150,330.
(TR) Bankers Trust New York Corp. provides sub-custodian services to
the fund.
144A after the name of a security represents those securities
exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
</TABLE>
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1995
<TABLE>
<S> <C>
ASSETS
- ----------------------------------------------------------------------
Investments in securities, at value
(identified cost $117,753,222) (Note 1) $113,650,231
- ----------------------------------------------------------------------
Cash 267
- ----------------------------------------------------------------------
Dividends receivable 1,000,416
- ----------------------------------------------------------------------
Receivable for securities sold 606,000
- ----------------------------------------------------------------------
TOTAL ASSETS 115,256,914
LIABILITIES
- ----------------------------------------------------------------------
Distributions payable to shareholders 649,275
- ----------------------------------------------------------------------
Payable for compensation of Manager (Note 3) 211,212
- ----------------------------------------------------------------------
Payable for administrative services (Note 3) 2,387
- ----------------------------------------------------------------------
Payable for compensation of Trustees (Note 3) 352
- ----------------------------------------------------------------------
Payable for investor servicing and custodian fees (Note 3) 25,316
- ----------------------------------------------------------------------
Other accrued expenses 11,063
- ----------------------------------------------------------------------
TOTAL LIABILITIES 899,605
- ----------------------------------------------------------------------
NET ASSETS $114,357,309
- ----------------------------------------------------------------------
REPRESENTED BY
- ----------------------------------------------------------------------
Common shares, without par value; unlimited shares
authorized; 10,821,255 shares outstanding $122,964,096
- ----------------------------------------------------------------------
Distributions in excess of net investment income (522,331)
- ----------------------------------------------------------------------
Accumulated net realized loss on investment transactions (3,981,465)
- ----------------------------------------------------------------------
Net unrealized depreciation of investments (4,102,991)
- ----------------------------------------------------------------------
TOTAL -- REPRESENTING NET ASSETS APPLICABLE TO
CAPITAL SHARES OUTSTANDING $114,357,309
- ----------------------------------------------------------------------
COMPUTATION OF NET ASSET VALUE
- ----------------------------------------------------------------------
Net asset value per share ($114,357,309 divided
by 10,821,255 shares) $10.57
- ----------------------------------------------------------------------
</TABLE>
<PAGE>
STATEMENT OF OPERATIONS
Year ended June 30, 1995
<TABLE>
<S> <C>
INVESTMENT INCOME
- ----------------------------------------------------------------------
Dividends (net of foreign tax of $41,642) $9,418,202
- ----------------------------------------------------------------------
Interest 189,930
- ----------------------------------------------------------------------
TOTAL INVESTMENT INCOME 9,608,132
EXPENSES:
- ----------------------------------------------------------------------
Compensation of Manager (Note 3) 923,842
- ----------------------------------------------------------------------
Investor servicing and custodian fees (Note 3) 31,964
- ----------------------------------------------------------------------
Compensation of Trustees (Note 3) 12,269
- ----------------------------------------------------------------------
Auditing 47,461
- ----------------------------------------------------------------------
Legal 7,456
- ----------------------------------------------------------------------
Postage 42,444
- ----------------------------------------------------------------------
Administrative services (Note 3) 8,638
- ----------------------------------------------------------------------
Reports to shareholders 41,205
- ----------------------------------------------------------------------
Amortization of organization expenses (Note 1) 2,840
- ----------------------------------------------------------------------
Preferred stock auction fees 57,418
- ----------------------------------------------------------------------
Other expenses 33,352
- ----------------------------------------------------------------------
TOTAL EXPENSES 1,208,889
- ----------------------------------------------------------------------
NET INVESTMENT INCOME 8,399,243
- ----------------------------------------------------------------------
Net realized loss on investments (Notes 1 and 4) (3,908,559)
- ----------------------------------------------------------------------
Net unrealized appreciation of investments during the year 4,004,697
- ----------------------------------------------------------------------
NET GAIN ON INVESTMENTS 96,138
- ----------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $8,495,381
- ----------------------------------------------------------------------
</TABLE>
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE><CAPTION>
<S> <C> <C>
Year ended June 30
------------------------------
1995 1994
- ----------------------------------------------------------------------
DECREASE IN NET ASSETS
- ----------------------------------------------------------------------
Operations:
- ----------------------------------------------------------------------
Net investment income $8,399,243 $12,168,367
- ----------------------------------------------------------------------
Net realized gain (loss) on investments
and written options (3,908,559) 3,614,720
- ----------------------------------------------------------------------
Net unrealized appreciation (depreciation)
of investments 4,004,697 (15,083,349)
- ----------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 8,495,381 699,738
- ----------------------------------------------------------------------
Distributions to auction preferred shareholders:
- ----------------------------------------------------------------------
From net investment income (93,670) (1,705,478)
- ----------------------------------------------------------------------
From net realized gain on investments (635,190) --
- ----------------------------------------------------------------------
Distributions to common shareholders:
- ----------------------------------------------------------------------
From net investment income (8,465,986) (11,297,391)
- ----------------------------------------------------------------------
From net realized gain on investments (2,571,785) (4,144,541)
- ----------------------------------------------------------------------
Decrease from capital share transactions (Note 2):
- ----------------------------------------------------------------------
Auction preferred shares (25,000,000) (49,000,000)
- ----------------------------------------------------------------------
Total decrease in net assets (28,271,250) (65,447,672)
NET ASSETS
- ----------------------------------------------------------------------
Beginning of year 142,628,559 208,076,231
- ----------------------------------------------------------------------
END OF YEAR (including distributions in
excess of net investment income of
$522,331 and $703,381, respectively) $114,357,309 $142,628,559
NUMBER OF FUND SHARES
- ----------------------------------------------------------------------
Common shares outstanding at beginning and
end of year 10,821,255 10,821,255
- ----------------------------------------------------------------------
Auction preferred shares outstanding at
beginning of year 250 740
- ----------------------------------------------------------------------
Preferred shares repurchased (250) (490)
- ----------------------------------------------------------------------
AUCTION PREFERRED SHARES OUTSTANDING AT
END OF YEAR -- 250
- ----------------------------------------------------------------------
</TABLE>
<PAGE>
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
<TABLE><CAPTION>
<S> <C> <C> <C> <C> <C>
Year ended June 30
- ----------------------------------------------------------------------
1995 1994 1993 1992 1991
- ----------------------------------------------------------------------
NET ASSET VALUE,
BEGINNING OF YEAR $10.84 $12.39 $11.38 $10.21 10.26
- ----------------------------------------------------------------------
INVESTMENT OPERATIONS
Net investment income .78 1.13 1.35 1.49 1.65
Net realized and
unrealized gain (loss)
on investments .01 (1.13) .97 1.15 .05
- ----------------------------------------------------------------------
TOTAL FROM INVESTMENT
OPERATIONS .79 -- 2.32 2.64 1.70
- ----------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income
To preferred shareholders(.01) (.16) (.21) (.27) (.49)
To common shareholders (.78) (1.04) (1.08) (1.19) (1.25)
Net realized gains
To preferred shareholders(.06) -- -- -- --
To common shareholders (.24) (.38) -- -- --
Paid-in capital: (a)
To common shareholders -- -- -- -- (.04)
- ----------------------------------------------------------------------
TOTAL DISTRIBUTIONS (1.09) (1.58) (1.29) (1.46) (1.78)
- ----------------------------------------------------------------------
Change in cumulative
undeclared dividends
on remarketed
preferred shares .03 .03 (.02) (.01) .03
- ----------------------------------------------------------------------
NET ASSET VALUE,
END OF YEAR $10.57 $10.84 $12.39 $11.38 $10.21
- ----------------------------------------------------------------------
MARKET VALUE,
END OF YEAR
(common shares) $9.250 $9.750 $11.875 $12.000 $10.375
- ----------------------------------------------------------------------
TOTAL INVESTMENT
RETURN AT MARKET
VALUE (common
shares (%)(b) 5.82 (6.78) 8.27 28.71 8.41
- ----------------------------------------------------------------------
NET ASSETS,
END OF YEAR
(total fund)
(in thousands) $114,357 $142,629 $208,076 $196,725 $182,003
- ----------------------------------------------------------------------
Ratio of expenses
to average net
assets (%)(c) 1.07 1.42 1.70 1.64 2.02
- ----------------------------------------------------------------------
Ratio of net
investment income
to average net
assets (%)(c) 7.39 8.06 9.65 11.14 11.67
- ----------------------------------------------------------------------
Portfolio turnover
rate (%) 27.39 73.63 166.44 160.44 197.67
- ----------------------------------------------------------------------
<FN>
(a) See Note 1 to Financial statements.
(b) Total investment return assumes dividend reinvestment and does
not reflect the effect of sales charges.
(c) Ratios reflect net assets available to common shares only; net
investment income ratio also reflects reduction for dividend
payments to preferred shareholders.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
June 30, 1995
NOTE 1
SIGNIFICANT ACCOUNTING POLICIES
The fund is registered under the Investment Company Act of 1940, as
amended, as a diversified, closed-end management investment company.
The fund's objective is to seek high current income eligible for
dividends received deduction allowed to corporations under the
Internal Revenue Code, consistent with preservation of capital by
investing in a portfolio of preferred and common equity securities.
The fund will invest at least 65% of its total assets in dividend-
paying securities. Preferred stocks will be rated "investment grade"
at the time of investment or, if not rated, will be of comparable
quality as determined by Putnam Investment Management, Inc., ("Putnam
Management"), the fund's Manager, a wholly owned subsidiary of Putnam
Investments, Inc. The fund may also use leverage by issuing preferred
shares in an effort to increase the income to the common shares.
The following is a summary of significant accounting policies
consistently followed by the fund in the preparation of its financial
statements. The policies are in conformity with generally accepted
accounting principles.
A SECURITY VALUATION Investments for which market quotations are
readily available are stated at market value, which is determined
using the last reported sale price, or, if no sales are reported -- as
in the case of some securities traded over-the-counter-- the last
reported bid price, except that certain U.S. government obligations
are stated at the mean between the bid and asked prices. Securities
whose market quotations are not readily available are stated at fair
value on the basis of valuations furnished by pricing services
approved by the Trustees, which determine valuations for normal,
institutional-size trading units of such securities using methods
based on market transactions for comparable securities and various
relationships between securities that are generally recognized by
institutional traders. Short-term investments having remaining
maturities of 60 days or less are stated at amortized cost, which
approximates market value, and other investments are stated at fair
value following procedures approved by the Trustees.
B JOINT TRADING ACCOUNT Pursuant to an exemptive order issued by the
Securities and Exchange Commission, the fund may transfer uninvested
cash balances into a joint trading account, along with the cash of
other registered investment companies managed by Putnam Management,
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 fund, or any joint trading account,
through the fund's custodian, receives 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.
<PAGE>
D DETERMINATION OF NET ASSET VALUE Net asset value of the common
shares is determined by dividing the value of all assets of the fund
(including accrued interest and dividends), less all liabilities
(including accrued expenses), undeclared dividends on remarketed
preferred shares and the liquidation value of any outstanding
remarketed preferred shares, by the total number of common shares
outstanding.
E 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 and dividend income is recorded on the ex-dividend date.
F 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. Therefore, no
provision has been made for federal taxes on income, capital gains or
unrealized appreciation of securities held and excise tax on income
and capital gains.
At June 30, 1995, the fund had a capital loss carryover of
approximately $366,000, which may be available to offset realized
capital gains. This amount will expire on June 30, 2003. To the extent
that the capital loss carryover is used to offset realized gains, it
is unlikely that the gains so offset will be distributed to
shareholders, since any such distribution might be taxable as ordinary
income.
G DISTRIBUTIONS TO SHAREHOLDERS Distributions to common and
preferred shareholders are recorded by the fund on the ex-dividend
date. At certain times, the fund may pay distributions at a level rate
even though, as a result of market conditions or investment decisions,
the fund may not achieve projected investment results for a given
period. 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. These
differences include dividends payable, post October losses and capital
loss carryover. Reclassifications are made to the fund's capital
accounts to reflect income and gains available for distribution (or
available capital loss carryovers) under income tax regulations. For
the year ended June 30, 1995, the fund reclassified $341,463 to
decrease distributions in excess of net investment income and $341,434
to increase accumulated net realized loss, with a decrease to paid-in-
capital of $29. The calculation of net investment income per share in
the financial highlights excludes these adjustments.
H UNAMORTIZED ORGANIZATION EXPENSES Expenses incurred by the fund in
connection with its organization aggregated $79,675. These expenses
have been amortized on a straight-line basis over a period of 60
months from the date the fund commenced operations.
<PAGE>
NOTE 2
AUCTION PREFERRED SHARES
On September 28, 1989, the fund issued 740 Auction Preferred Shares,
Series A. Proceeds to the fund before underwriting expense of
$1,295,000 and $308,080 of offering expenses, amounted to $74,000,000.
During the fiscal year ended June 30, 1994, a total of 490 shares were
repurchased at a value of $49,000,000. The remaining 250 shares were
repurchased by the fund at a value of $25,000,000 during the year
ended June 30, 1995. There were no undeclared dividends on the
Preferred Shares for the year ended June 30, 1995. The preferred
shares were redeemable at the option of the fund at a redemption price
of $100,000 per share, plus an amount equal to any dividends
accumulated on a daily basis but unpaid through the redemption date
(whether or not such dividends had been declared).
Under the Investment Company Act of 1940, the fund was required to
maintain asset coverage of at least 200% with respect to the auctioned
preferred shares as of the last business day of each month in which
any such shares were outstanding. Additionally, the fund was required
to meet more stringent asset coverage requirements under the terms of
the auctioned preferred shares and the shares' rating agencies. Had
these requirements not been met, or had dividends accrued on the
auctioned preferred shares not been paid, the fund may have been
restricted in its ability to declare dividends to common shareholders
or may have been required to redeem certain of the auctioned preferred
shares. During the year ended June 30, 1995, no such restrictions were
placed on the fund.
<PAGE>
NOTE 3
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, including proceeds from any auctioned preferred offering.
Such fee is based on the following annual rates: 0.75% of the first
$500 million of average net assets, 0.65% of the next $500 million,
0.60% of the next $500 million and 0.55% of any amount over $1.5
billion.
If dividends payable on auctioned preferred shares during any dividend
payment period plus any expenses attributable to auctioned preferred
shares for that period exceeded the fund's net income attributable to
the proceeds of the auctioned preferred shares during that period,
then the fee payable to Putnam for that period would have been reduced
by the amount of the excess (but not more than 0.85% of the
liquidation preference of the remarketed auction preferred shares
outstanding during the period).
The fund also reimburses Putnam Management for the compensation and
related expenses of certain officers of the fund and their staff who
provide administrative services to the fund. The aggregate amount of
all such reimbursements is determined annually by the Trustees.
Trustees of the fund receive an annual Trustee's fee of $810 and an
additional fee for each Trustees' 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.
Custodial functions for the fund are provided by Putnam Fiduciary
Trust Company (PFTC), a subsidiary of
<PAGE>
Putnam Investments, Inc. Investor servicing agent functions are
provided by Putnam Investor Services, a division of PFTC.
Investor servicing and custodian fees reported in the Statement of
operations for the year ended June 30, 1995 have been reduced by
credits allowed by PFTC. These credits amounted to $125,937 for the
year ended June 30, 1995.
NOTE 4
PURCHASES AND SALES OF SECURITIES
During the year ended June 30, 1995, purchases and sales of investment
securities other than short-term investments aggregated $32,585,663
and $64,977,317, respectively. In determining the net gain or loss on
securities sold, the cost of securities has been determined on the
identified cost basis.
<PAGE>
SELECTED QUARTERLY DATA
(Unaudited)
<TABLE><CAPTION>
<S> <C> <C> <C> <C>
AVAILABLE FOR COMMON SHAREHOLDERS
- ----------------------------------------------------------------------
INVESTMENT INCOME NET INVESTMENT INCOME
- ----------------------------------------------------------------------
QUARTER ENDED TOTAL PER SHARE TOTAL PER SHARE
- ----------------------------------------------------------------------
9/30/93 $3,910,999 $.36 $3,131,259 $.29
12/31/93 $3,742,849 $.34 $2,650,334 $.24
3/31/94 $3,397,147 $.32 $2,445,713 $.23
6/30/94 $2,962,961 $.28 $2,235,583 $.21
9/30/94 $2,647,044 $.24 $2,281,816 $.21
12/31/94 $2,480,140 $.23 $2,149,522 $.20
3/31/95 $2,264,210 $.21 $2,003,551 $.19
6/30/95 $2,216,738 $.21 $1,931,367 $.18
- ----------------------------------------------------------------------
</TABLE>
<PAGE>
SELECTED QUARTERLY DATA (continued)
<TABLE><CAPTION>
<C> <C> <C> <C> <C> <C>
AVAILABLE FOR COMMON SHAREHOLDERS
- ----------------------------------------------------------------------
NET REALIZED NET INCREASE
AND UNREALIZED (DECREASE) IN
GAIN (LOSS) NET ASSETS NET ASSETS AT
ON INVESTMENTS FROM OPERATIONS end of period
- ----------------------------------------------------------------------
PER PER PER
TOTAL SHARE TOTAL SHARE TOTAL SHARE
- ----------------------------------------------------------------------
$4,427,795 $.41 $7,559,054 $.70 $138,962,635 $12.84
$(3,456,693) $(.31) $(806,359) $(.07) $129,714,179 $11.99
$(7,942,482) $(.75) $(5,496,769) $(.52) $121,879,941 $11.26
$(4,497,249) $(.48) $(2,261,666) $(.27) $117,326,104 $10.84
$(1,372,663) $(.12) $909,153 $.09 $115,932,585 $10.71
$(5,514,255) $(.51) $(3,364,733) $(.31) $107,443,034 $9.93
$3,980,750 $.36 $5,984,301 $.55 $111,371,298 $10.29
$3,002,306 $.28 $4,933,673 $.46 $114,357,309 $10.57
- ----------------------------------------------------------------------
</TABLE>
- ----------------------------------------------------------------------
DIVIDEND POLICY
It is the fund's dividend policy to pay monthly distributions from net
investment income and any net realized short-term gains (including
gains from options and futures transactions). Long-term capital gains
are distributed at least annually. In an effort to maintain a more
stable level of distributions, the fund's monthly distribution rate
will be based on Putnam Management's projections of the net investment
income and net realized short-term capital gains that the fund is
likely to earn over the long term. Such distributions at times may
exceed the current earnings of the fund, resulting in a nontaxable
return of capital to shareholders.
At the time of each distribution, shareholders are furnished Putnam
Management's current estimate of the sources of such distribution.
These estimates are subject to adjustment depending on investment
results for the fund's entire fiscal year. Final information regarding
such matters is furnished to shareholders in the fund's annual reports
and in tax information provided following the end of each calendar
year.
<PAGE>
FEDERAL TAX INFORMATION
The fund has designated approximately 100% of the distributions as
qualifying for the dividends-received deduction for corporations.
Pursuant to Section 852 of the Internal Revenue Code, the fund hereby
designates $0.24 per share (or if different, the amount necessary to
offset capital gain income earned by the fund) as capital gain
dividends for its taxable year ended June 30, 1995.
The Form 1099 you will receive in January 1996 will show the tax
status of all distributions paid to your account in calendar 1995.
- ----------------------------------------------------------------------
RESULTS OF JUNE 1, 1995 SHAREHOLDER MEETING (UNAUDITED)
An annual meeting of shareholders of the fund was held on June 1,
1995. At the meeting, each of the nominees for Trustees was elected,
as follows:
<TABLE><CAPTION>
<S> <C> <C>
Votes for Votes withheld
Jameson Adkins Baxter 9,116,117 209,977
Hans H. Estin 9,109,211 216,882
John A. Hill 9,124,034 202,060
Elizabeth T. Kennan 9,119,980 206,114
Lawrence J. Lasser 9,121,206 204,887
Robert E. Patterson 9,121,477 204,617
Donald S. Perkins 9,136,152 189,941
William F. Pounds 9,142,152 201,941
George Putnam 9,125,495 200,598
George Putnam, III 9,112,995 213,098
Eli Shapiro 9,015,314 220,779
A.J.C. Smith 9,118,777 207,317
W. Nicholas Thorndike 9,122,806 203,287
</TABLE>
A proposal to ratify the selection of Coopers & Lybrand L.L.P. as
auditors for the fund was approved as follows: 9,085,879 votes for,
and 43,548 votes against, with 196,666 abstentions and broker non-
votes. All tabulations have been rounded to the nearest whole number.
<PAGE>
FUND INFORMATION
INVESTMENT MANAGER
Putnam Investment
Management, Inc.
One Post Office Square
Boston, MA 02109
MARKETING SERVICES
Putnam Mutual Funds Corp.
One Post Office Square
Boston, MA 02109
CUSTODIAN
Putnam Fiduciary Trust Company
LEGAL COUNSEL
Ropes & Gray
INDEPENDENT ACCOUNTANTS
Coopers & Lybrand L.L.P.
TRUSTEES
George Putnam, Chairman
William F. Pounds, Vice Chairman
Jameson Adkins Baxter
Hans H. Estin
John A. Hill
Elizabeth T. Kennan
Lawrence J. Lasser
Robert E. Patterson
Donald S. Perkins
George Putnam, III
Eli Shapiro
A.J.C. Smith
W. Nicholas Thorndike
OFFICERS
George Putnam
President
Charles E. Porter
Executive Vice President
Patricia C. Flaherty
Senior Vice President
Lawrence J. Lasser
Vice President
Gordon H. Silver
Vice President
Peter Carman
Vice President
Thomas Reilly
Vice President
Jeanne Mockard
Vice President and Fund Manager
William N. Shiebler
Vice President
John R. Verani
Vice President
Paul M. O'Neil
Vice President
John D. Hughes
Vice President and Treasurer
Beverly Marcus
Clerk and Assistant Treasurer
Call 1-800-225-1581 weekdays from 9 a.m. to 5 p.m., Eastern Time for
up-to-date information about the fund's NAV or to request Putnam's
quarterly Closed- End Fund Commentary.
<PAGE>
PUTNAM INVESTMENTS
THE PUTNAM FUNDS
One Post Office Square
Boston, Massachusetts 02109
Bulk Rate
U.S. Postage
PAID
Putnam
Investments
19395-056
<PAGE>
APPENDIX TO FORM N-30D FILINGS TO DESCRIBE DIFFERENCES BETWEEN PRINTED
AND EDGAR-FILED TEXTS.
(1) Rule lines for tables are omitted.
(2) Italic typefaces is displayed in normal type.
(3) Boldface type is displayed in capital letters.
(4) Headers (e.g. the names of the fund) and footers (e.g. page
numbers and OThe accompanying notes are an integral part of these
financial statementsO) are omitted.
(5) Because the printed page breaks are not reflected, certain
tabular and columnar headings and symbols are displayed
differently in this filing.
(6) Bullet points and similar graphic symbols are omitted.
(7) Page numbering is different.
