(logo)
Putnam
Florida
Tax Exempt
Income Fund
Semiannual
Report
December 31, 1993
(artwork)
For investors seeking
high current income
free from federal
income taxes,
consistent with capital
preservation.
Contents
2 How your fund performed
3 From the Chairman
4 Report from Putnam Management
Semiannual Report
6 Portfolio of investments owned
12 Financial statements
19 Fund performance supplement
<PAGE>
How your fund performed
For periods ended December 31, 1993
Total return*
Lehman
Fund Brothers Consumer
Class A Class B Municipal Price
NAV POP NAV CDSC Bond Index Index
6 months 3.72% -1.26% 3.26%-1.73% 4.82% 0.97%
1 year 11.17 5.84 -- -- 12.28 2.75
3 years 36.59 30.10 -- -- 37.01 8.97
annualized 10.95 9.17 -- -- 11.07 2.91
Life-of-class**
(class A shares) 41.83 35.15 -- -- 43.0010.79
annualized 11.00 9.41 -- -- 11.27 3.11
(class B shares) -- -- 9.75 4.75 12.28 2.75
Share data Class A Class B
NAV POP NAV
June 30, 1993 $9.53 $10.01 $9.53
December 31, 1993 9.52 9.99 9.51
Distributions (a) Investment Capital
Number income gains Total
Class A 7 $0.253148 $0.106 $0.359148
Class B 7 0.220566 0.106 0.326566
Taxable equivalents+
Current returns Class A Class B Class AClass B
at the end of
the period NAV POP NAV NAV POP NAV
Current dividend
rate 5.27% 5.03% 4.63% 8.73% 8.33% 7.67%
Current 30-day
yield 4.79 4.56 4.09 7.93 7.55 6.77
* Performance data represent past results. Investment return and
principal value will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
** The fund began operations on August 24, 1990, offering shares
now known as class A shares. On January 4, 1993, the fund began
offering class B shares. Performance for each share class will
differ.
(a) Capital gains, if any, are taxable.
+Taxable equivalent rates cited assume the maximum federal tax
rate of 39.6%. Results for investors subject to lower tax rates
would not be as advantageous, although many would still have the
opportunity to receive attractive tax benefits from a fund
investment. Consult your tax advisor for more guidance.
Terms you need to know
Total return is the change in value of an investment from the
beginning to the end of a period, assuming the reinvestment of
all distributions. It may be shown at net asset value or at
public offering price.
Net asset value (NAV) is the value of all your fund's assets,
minus any liabilities, divided by the number of outstanding
shares, not reflecting any sales charge.
Public offering price (POP) is the price of a mutual fund share
plus the maximum sales charge levied at the time of purchase.
Contingent deferred sales charge (CDSC) is a charge applied at
the time of the redemption of shares rather than the time of
purchase. It generally declines and eventually disappears over a
stated period.
Class A shares are the shares of your fund offered subject to an
initial sales charge. Your fund's POP includes the maximum 4.75%
sales charge.
Class B shares are the shares of your fund offered with no
initial sales charge. Within the first six years of purchase,
they are subject to a CDSC declining from 5% to 1%. After the
sixth year, the CDSC no longer applies.
Current dividend rate is calculated by annualizing the net
investment income paid to shareholders in the fund's most recent
distribution, then dividing by the NAV or POP on the last day of
the period.
Current 30-day yield, based only on the fund's net investment
income earnings, is calculated in accordance with Securities and
Exchange Commission guidelines.
Taxable equivalent return is the rate at which a taxable
investment would have to generate income to equal the fund's
current dividend rate or yield.
Please see the fund performance supplement on page 19 for
additional information about performance comparisons.
<PAGE>
From the Chairman
(photograph of George Putnam)
(C) Karsh, Ottawa
George Putnam
Chairman
of the Trustees
Dear Shareholder:
For the six months ended December 31, 1993, Putnam Florida Tax
Exempt Income Fund provided positive performance results. For the
period, your fund handed in a total return of 3.72% at net asset
value for class A shares, assuming reinvestment of all
distributions.
Your fund continued to provide an attractive level of income,
with a dividend rate of 5.27% at net asset value as of December
31, 1993. Investors in the new top federal tax bracket of 39.6%
would have had to find a taxable investment yielding close to 9%
in order to achieve the same level of after-tax income.
Your fund's management team, headed by Richard P. Wyke, continues
to seek the best opportunities for income in the Florida
tax-exempt bond market. They meet regularly with Florida bond
issuers as they seek holdings that will provide a high level of
income without exposing the fund to undue risk.
Looking forward, Putnam Management believes that Florida's
fast-growing population rate should continue to contribute to the
attractiveness of its municipal bond market--which should
translate into rewarding investment performance over the rest of
the fiscal year.
Respectfully yours,
George Putnam
February 16, 1994
<PAGE>
Report from
Putnam Management
In seeking high current income consistent with capital
preservation, Putnam Florida Tax Exempt Income Fund invests in a
diversified portfolio of longer-term, high-quality tax-exempt
securities issued primarily by the state of Florida.
Several factors have made municipal bond investments, and
consequently, a fund investment, very appealing for investors
over the last several months:
Attractive overall market conditions The tax-exempt securities
market, as a whole, has provided very strong returns over the
last year. A slowly recovering economy, coupled with low interest
rates and low inflation, has enhanced the performance of
tax-exempt securities and, in turn, your fund's holdings. One
reason for this is that as interest rates decline, the value of
all bonds, including tax-exempt bonds, increases.
Additionally, with the passage of the Clinton tax bill, more and
more investors are looking for ways to shelter their investment
income from higher taxes. Tax-exempt bond investments continue to
be one of the few effective solutions. The demand for municipal
bonds has therefore continued to exceed the supply, and we
believe will continue to do so in coming months.
New opportunities in Florida market Florida has one of the
fastest-growing population rates in the United States. This is
good news for investors in the municipal bond market. As the
state's population increases, the need for more public projects
and services, usually financed through the issuance of municipal
bonds, is also expected to increase.
Additionally, we believe Florida stands to benefit significantly
from the effects of the North American Free Trade Agreement. If
expanded trade between the U.S. and Mexico develops as a result
of the agreement, as we expect, increased shipping traffic into
and out of Florida will require enhancements to the state's
infrastructure. Municipal bonds will no doubt play a large role
in the financing of these improvements.
Remaining fully invested Under current market conditions, we
continue to stress the importance of keeping as much of the
fund's assets invested in tax-exempt bonds as possible. We
believe that positioning a significant portion of the fund's
holdings in cash or other investments would deprive the fund of
benefits now available in the tax-exempt securities market.
Currently, your fund holds a broad range of securities in
different sectors of the market. So while we believe that staying
fully invested in the tax-exempt securities market is paramount,
we work to protect your fund's share price by spreading holdings
among a variety of high-quality bonds.
Diversification reduces risk In any diversified portfolio, you
can expect some holdings to perform extremely well, while others
may lag behind. A major benefit of investing in a mutual fund is
the ability of the fund's high-performing holdings to balance out
the performance of those that may have been negatively affected
by events concerning the projects they finance. A scenario that
recently epitomized this advantage of diversification was the
fund's St. Petersburg revenue bond holdings, issued on behalf of
the Mirror Lake Project.
Mirror Lake was initially an attractive acquisition for the fund;
the project promised to provide attractive, low-cost housing for
Florida residents. While the award-winning conversion of this
city-owned building was completed on time and within budget, unit
sales have not materialized at the necessary pace.
The lesson reaffirmed here is that diversification is the key to
helping the fund provide positive performance. Even when some
holdings don't live up to expectations, others can offset these
results over the long term.
More often, however, our expectations for the performance of the
fundholdings are met or exceeded. A case in point is the fund s
Palm Beach, JFK Medical Center holding, where we determined that
hospital management had the staff and expertise to succeed in the
newly emerging health care environment.
Our assessment proved accurate. This holding, which was rated BBB
at the time of purchase, has recently been prerefunded, and
consequently, has been upgraded to AAA. While the rest of the
market now recognizes the value of this holding, we were among
the first large investors to do so.
Looking ahead We believe the current low rate of inflation
combined with slow economic growth will continue for several
months. Additionally, we expect the demand for tax-exempt
securities to continue to outpace supply. Many analysts are
predicting a sharp drop in the supply of municipal bonds over the
next year, an expectation we share. In the coming months, we will
continue to monitor the Florida tax-exempt bond market and
position your fund to benefit from upcoming opportunities.
<PAGE>
<TABLE>
<CAPTIONS>
Portfolio of
investments owned
December 31, 1993 (Unaudited)
Municipal Bonds and Notes (96.6%) (a)
Principal Amount Ratings (b) Value
<S> <C> <C> <C>
Florida (91.8%)
$5,500,000 Brevard Cnty., School Board
Certif. of Partcipation Ser. A,
American Municipal Bonds Insurance
Association (AMBAC), 6 1/2s, 7/1/12 AAA $ 5,995,000
Broward Cnty., Edl. Fac. Auth. Rev. Bonds
(Nova U. Dorm Project), Ser. A
2,500,000 7 1/2s, 4/1/17 BBB 2,812,500
915,000 7 1/4s, 4/1/01 BBB 1,013,363
1,000,000 Broward Cnty., Hlth. Fac. Auth. Rev. Bonds
(Broward Cnty. Nursing Home), 7 1/2s, 8/15/20 A 1,130,000
Broward Cnty., Resource Recvy. Rev. Bonds
3,180,000 (South Project), 7.95s, 12/1/08 A 3,609,300
1,420,000 (Waste-to-Energy Project), 7.95s, 12/1/08 A 1,613,475
6,065,000 Cape Coral, Hlth. Fac. Auth. Hosp. Rev. Bonds
(Cape Coral Med. Ctr. Inc. Project),
7 1/2s, 11/15/21 Baa 6,845,869
Cape Coral, Special Obligation Rev. Bonds
3,000,000 6 3/8s, 6/1/09 AAA 3,277,500
3,000,000 6 1/4s, 6/1/06 AAA 3,322,500
Charlotte Cnty., Dev. Auth. Aprt. Fac.
Rev. Bonds, Ser. A
1,000,000 8 1/8s, 10/1/10 BBB/P 1,117,500
365,000 8s, 10/1/05 BBB/P 398,763
2,000,000 Charlotte Cnty., Util. Rev. Bonds
Financial Guaranty Insurance Co.
(FGIC), 6 7/8s, 10/1/21 AAA $ 2,357,500
1,400,000 Clay Cnty., Multi-Fam. Hsg. Fin. Auth.
Rev. Bonds (Oak Forest), Ser. A,
Government National Mortgage Association
(GNMA) Coll. 7.4s, 12/1/25 AAA 1,512,000
1,500,000 Clay Cnty., Single Fam. Hsg. Fin. Auth.
Rev. Bonds Ser. A, GNMA Coll., 7.45s, 9/1/23 AAA 1,595,625
1,100,000 Cocoa, Wtr. & Swr. Rev. Bonds Ser. B,
AMBAC, 5 1/4s, 10/1/16 AAA 1,097,250
550,000 Collier Cnty., Special Assessment Rev.
Bonds (Pine/Naples Muni. Svc. Tax &
Benefits), 5.6s, 11/1/13 BBB 536,250
1,500,000 Coral Springs, Impt. Dist. Wtr. & Swr.
Rev. Bonds Municipal Bond Insurance
Assn., (MBIA), 8 1/4s, 6/1/14 AAA 1,790,625
4,250,000 Dade Cnty., Aviation Rev. Bonds Ser. B,
MBIA, 6.55s, 10/1/13 AAA 4,722,813
100,000 Dade Cnty., Hlth. Fac. Auth. Hosp.
Rev. Bonds (North Shore Med. Ctr.
Project), AMBAC, 9 1/8s, 10/1/13 AAA 111,750
$ 6,700,000 Dade Cnty., Professional Sports Franchise
Fac. Tax Rev. Bonds Ser. B, FGIC, 6s,
10/1/22 AAA $7,060,125
5,500,000 Dade Cnty., Pub. Fac. Rev. Bonds (Jackson
Memorial Hosp.), MBIA, 5 1/4s, 6/1/23 AAA 5,369,375
1,690,000 Dade Cnty., Single Fam. Hsg. Fin. Auth.
Mtge. Rev. Bonds Ser. B, GNMA Coll.,
8 3/4s, 7/1/17 AAA 1,795,625
2,560,000 Escambia Cnty., Poll. Control Rev. Bonds
(Gulf Pwr. Co. Project), MBIA, 5.8s, 6/1/23 AAA 2,627,200
2,325,000 Escambia Cnty., Single Fam. Hsg. Fin.
Auth. Mtge. Variable Rate Demand Notes
(VRDN) (Multi-Cnty. Program), Ser. A,
GNMA Coll., 7.15s, 10/1/24 AAA 2,377,313
FL Hsg. Fin. Agcy. Rev. Bonds
775,000 (Home Ownership Dev. Program), Ser. G-1,
GNMA Coll., 7.9s, 3/1/22 AAA 814,719
4,830,000 Ser. 1-B, GNMA Coll., 7.1s, 1/1/17 AAA 5,149,275
<PAGE>
FL State Board of Ed. Capital
Rev. Bonds (Public Ed.), Ser. D
4,550,000 1/4s, 6/1/23 AA 4,510,188
5,000,000 5.2s, 6/1/23 AA 4,887,500
FL State Dept. Gen. Svcs. Rev. Bonds
(Fac. Management)
$1,500,000 7 3/4s, 9/1/16 AAA $ 1,689,375
7,750,000 AMBAC, 5.4s, 9/1/17 AAA 7,788,750
FL State Mid-Bay Bridge Auth. Rev.
Bonds, Ser. A
1,500,000 8s, 10/1/06 BBB/P 1,721,250
2,000,000 7 1/2s, 10/1/17 BB/P 2,235,000
2,140,000 6.1s, 10/1/22 BBB 2,198,850
FL State Muni. Pwr. Agcy. Rev. Bonds
1,500,000 (Pwr. Supply Project), AMBAC,
6 1/4s, 10/1/21 AAA 1,719,375
5,000,000 (St. Lucie Project), FGIC, 5.7s, 10/1/16 AAA 5,143,750
2,000,000 FL State Muni. Pwr. Agcy. Residual Interest
Bonds (RIBS), AMBAC, 9.48s, 10/1/20
(acquired 7/10/92, cost $2,101,200) (c) AAA 2,570,000
FL State Tpk. Auth. Rev. Bonds, Ser. A, FGIC
3,700,000 6 1/4s, 7/1/09 AAA 4,014,500
3,000,000 5 1/4s, 7/1/22 AAA 2,962,500
2,500,000 5s, 7/1/14 AAA 2,428,125
6,500,000 Fort Pierce, Util. Auth. Rev. Bonds AMBAC,
5 1/4s, 10/1/16 AAA 6,508,125
8,000,000 Gainesville, Util. Syst. Rev. Bonds
Ser. A, 6 1/2s, 10/1/22 AA 8,840,000
2,500,000 Gulf Breeze, Local Govt. Rev. Bonds
Ser. E, FGIC, 7 3/4s, 12/1/15 AAA 2,906,250
6,120,000 Hillsborough Cnty., Aviation Auth. Rev.
Bonds (USAir Project), 8.6s, 1/15/22 BB $ 6,938,550
3,000,000 Hillsborough Cnty., Cap. Impt. Rev.
Bonds 8.3s, 8/1/16 AAA 3,345,000
2,500,000 Hillsborough Cnty., Indl. Dev. Auth.
Poll. Control Rev. Bonds (Tampa Elec.
Co. Project), Ser. 91, 7 7/8s, 8/1/21 AA 3,018,750
2,400,000 Hillsborough Cnty., Util. Rev. Bonds
Ser. A, 6 1/2s, 8/1/16 Baa 2,601,000
<PAGE>
Jacksonville, Elec. Auth. Rev
(Bulk Pwr. Supply-Scherer 4 Project),
Ser. A,
1,000,000 6 3/4s, 10/1/21 AA 1,160,000
1,815,000 5 1/4s, 10/1/21 AA 1,787,775
1,500,000 Jacksonville, Hlth. Fac. Auth. Hosp.
Rev. Bonds (Health South Inc. Project),
MBIA, 6s, 5/1/22 AAA 1,569,375
Jacksonville, Hlth. Fac. Auth. Ind. Dev.
Rev. Bonds (Cypress Village Project)
1,350,000 7s, 12/1/22 Baa 1,466,438
3,650,000 7s, 12/1/14 BBB 3,987,625
990,000 Jacksonville, Hlth. Fac. Auth. Rev. Bonds
(Mental Hlth. Ctr.), 9 1/8s, 10/15/19 A/P 1,046,925
330,000 Jacksonville, Port Auth. Indl. Dev. Poll.
Control Rev. Bonds (FL Pwr. & Lt. Co.
Project), Ser. 84-B, 9 5/8s, 6/1/19 A 365,888
3,000,000 Lake Cnty., Res. Recvy. Ind. Dev. Rev.
Bonds (Recovery Group), Ser. A, 5.85s,
10/1/09 BBB 3,033,750
7,000,000 Lee Cnty., Arpt. Rev. Bonds Ser. A,
AMBAC, 5 1/2s, 10/1/10 AAA 7,140,000
4,000,000 Lee Cnty., Board of Directors Hosp.
RIBS MBIA, 10.475s, 4/1/20 AAA 4,675,000
3,000,000 Lee Cnty., Cap. & Trans. Fac. Rev.
Bonds Ser. A, MBIA, 5.55s, 10/1/18 AAA 3,052,500
Leesburg, Hosp. Rev. Bonds (Leesburg
3 Regl. Med. Ctr. Project)
1,000,000 Ser. 91-A, 7 1/2s, 7/1/21 AAA 1,227,500
1,750,000 Ser. B, 5.7s, 7/1/18 BBB 1,697,500
2,295,000 Miami, General Obligation (G.O.) Bonds
FGIC, 5 1/2s, 12/1/13 AAA 2,340,900
Miami, Hlth. Facs. Auth. Rev. Bonds
(Cedars Med. Ctr.), Ser. A
1,000,000 8 3/8s, 10/1/17 AAA/P 1,177,500
1,300,000 8.2s, 10/1/02 AAA/P 1,522,625
1,975,000 Orange Cnty., Hlth. Fac. Auth. Rev.
Bonds (Pooled Hosp. Loan), Ser. A, FGIC,
7 7/8s, 12/1/25 AAA $ 2,231,750
1,840,000 Orange Cnty., Hsg. Fin. Auth. Mtge.
Rev. Bonds Ser. E, GNMA Coll., 7.9s,
10/1/22 AAA 1,943,500
3,000,000 Orange Cnty., Tourist Dev. Tax Rev.
Bonds Ser. A, AMBAC, 6 1/2s, 10/1/10 AAA 3,337,500
Orlando & Orange Cnty., Expressway Auth.
Rev. Bonds
2,500,000 7 1/4s, 7/1/14 A/P 2,768,750
5,000,000 FGIC, 5 1/2s, 7/1/18 AAA 5,043,750
4,000,000 5 1/4s, 7/1/12 AAA 4,005,000
Orlando, Util. Comm. Wtr. & Elec. Rev. Bonds
10,200,000 Ser. D, 6 3/4s, 10/1/17 AA 12,227,250
7,500,000 Ser. B, 5 1/4s, 10/1/23 AA 7,321,875
2,072,000 Osceola Cnty., Indl. Dev. Auth. Rev.
Bonds (Cmnty. Provider Pooled Loan Program),
Ser. A, 7 3/4s, 7/1/10 AAA 2,276,610
2,000,000 Palm Beach Cnty., Arpt. Syst. Rev.
Bonds MBIA, 7 3/4s, 10/1/10 AAA 2,410,000
Palm Beach Cnty., Hlth. Fac. Auth.
Rev. Bonds (JFK Med. Ctr. Inc.
Project)
4,450,000 8 7/8s, 12/1/18 BBB 5,322,000
7,000,000 5 3/4s, 12/1/14 AAA 7,297,500
255,000 Palm Beach Cnty., Single Fam. Hsg. Fin.
Auth. Mtge. VRDN 7.2s, 10/1/24 AAA $ 271,894
4,000,000 Palm Beach Cnty., Student Hsg. Rev.
Bonds (Palm Beach Cmnty. College), Ser. A,
8 1/2s, 3/1/23 BB/P 3,965,000
5,000,000 Pinellas Cnty., Poll. Control Rev.
Bonds (FL Pwr. Corp.) 7.2s, 12/1/14 A 5,750,000
655,000 Polk Cnty., Hsg. Fin. Auth. Rev. Bonds
Ser. A, GNMA Coll., 7 7/8s, 9/1/22 AAA 693,481
5,000,000 Port Everglades, Rev. Bonds (FL Port
Impt.) 7 1/8s, 11/1/16 AAA 6,093,750
2,500,000 Port Orange, Wtr. & Swr. Rev. Bonds
AMBAC, 5 1/4s, 10/1/21 AAA 2,484,375
2,935,000 Sanibel, Swr. Util. Rev. Bonds, 7 1/2s,
8/1/21 Baa 3,558,688
<PAGE>
2,390,000 Santa Rosa Cnty., Hlth. Fac.
Bonds (Gulf Breeze Hosp. Inc.), Ser.
A, 6.2s, 10/1/14 BBB 2,458,713
2,250,000 South Broward, Hosp. Dist. RIBS,
Ser. C, AMBAC, 10.708s, 5/1/21 AAA 2,640,938
775,000 St. Lucie Cnty., Poll. Control Rev.
Bonds (FL Pwr. & Lt. Co. Project),
11s, 10/1/19 A 841,844
3,905,000 St. Lucie Cnty., Util. Syst. Rev.
Bonds FGIC, 5 1/2s, 10/1/16 AAA $ 3,978,219
7,800,000 St. Petersburg, Hlth. Fac. Auth. Rev.
Bonds (Alleghecy Hlth.), Ser. A, MBIA,
7s, 12/1/15 AAA 9,028,500
3,820,000 St. Petersburg, Rev. Bonds (Mirror Lake
Project), 8 1/2s, 3/1/00 BB/P 1,986,400
3,490,000 Sumter Cnty., Capital Impt. Rev Bonds
MBIA, 5s, 6/1/24 AAA 3,332,950
4,860,000 Sumter Cnty., School Dist. Rev. Bonds
(Multi Dist. Loan Program), 7.15s, 11/1/15 AAA 6,087,150
4,000,000 Sunrise, Special Tax Dist. No. 1,
Rev. Bonds, 6 3/8s, 11/1/21 AA 4,280,000
9,530,000 Tampa, Cap. Impt. Rev. Bonds, Ser. B,
8 3/8s, 10/1/18 BBB 10,650,393
3,965,000 Tampa, Parking Fac. Rev. Bonds AMBAC
5 1/2s, 10/1/10 AAA 4,074,038
500,000 Tampa, Wtr. & Swr. RIBS, Ser. A,
FGIC, 3.34s, 10/1/12 AAA 533,750
3,440,000 Village Ctr., Cmnty. Dev. Dist. FL
Util. Rev Bonds FGIC, 5 3/8s, 11/1/23 AAA 3,461,500
1,800,000 Volusia Cnty., Hlth. Fac. Auth. Rev.
Bonds (Memorial Hlth. Syst. Project)
8 1/8s, 6/1/08 BBB 2,022,750
319,711,172
Guam (0.4%)
1,300,000 Guam Pwr. Auth. Rev. Bonds Ser. A,
6.3s, 10/1/12 BBB 1,382,875<PAGE>
Puerto Rico (4.4%)
1,500,000 Cmnwlth. of Puerto Rico, Aqueduct &
Swr. Auth. Rev. Bonds, Ser. A,
7 7/8s, 7/1/17 BBB 1,736,250
7,000,000 Cmnwlth. of Puerto Rico, Hwy. & Trans.
Auth. VRDN Ser. X, 2.9s, 7/1/99 A 7,000,000
1,000,000 Cmnwlth. of Puerto Rico, Pub. Impt.
G.O. Bonds 7.7s, 7/1/20 AAA 1,215,000
5,120,000 Puerto Rico, Pub. Bldg. Auth. Gtd.
Rev. Bonds Ser. L, 5 1/2s, 7/1/07 A 5,286,400
15,237,650
Total Investments
(cost $315,757,122) (d) $336,331,697
Notes
(a) Percentages indicated are based on total net assets of $348,418,600, which correspond
to a net asset value per Class A share and Class B share of $9.52 and $9.51,
respectively.
(b) The Moody's or Standard & Poor's ratings indicated are believed to be the most recent
ratings available at December 31, 1993 for the securities listed.
Ratings are generally ascribed to securities at the time of issuance. While the agencies
may from time to time revise such ratings, they undertake no obligation to do so, and the
ratings do not necessarily represent what the agencies whould ascribe to these securities
at December 31, 1993. Securities rated by Putnam are indicated by "/P" and are not
publicly rated.
(c) Restricted as to public resale. At the end of acquisition, this security was valued
at cost. There were no outstanding unrestricted securities of the same class as that held.
Total market value of restricted securities owned at December 31, 1993 was $2,570,000 or
0.8% of net assets.
(d) The aggregate identified cost on a tax basis is $315,771,489 resulting in gross
unrealized appreciation and depreciation of $20,560,208 and $22,658,404 respectively, or
net unrealized depreciation of $2,098,196.
The rates shown on Variable Rate Demand Notes (VRDN) and Residual Interest Bonds (RIBS)
are the current interest rates at December 31, 1993 which are subject to change based on
the terms of the security.
The Fund had the following insurance group concentrations greater than 10% at December 31,
1993 (as a percentage of net assets):
AMBAC 14.2%
FGIC 11.3
The Fund had the following industry group concentrations greater than 10% on December 31,
1993 (as a percentage of net assets):
Health Care 16.6%
Transportation 16.1
Utilities 14.0
Water & Sewer 12.1
U.S. Treasury Bond Futures Outstanding
at December 31, 1993
Aggregate
Total Face Expiration Unrealized
Value Value Date (Depreciation)
U.S. Treasury Bond
Futures (Sell) $19,151,562 $19,095,510 Mar/94 ($56,052)
/TABLE
<PAGE>
<TABLE>
<CAPTION>
Statement of assets and liabilities
December 31, 1993
(Unaudited)
<S> <C> <C>
Assets
Investments in securities, at value (identified cost $315,757,122)
(Note 1 ) $336,331,697
Cash 493,860
Interest receivable 5,087,406
Receivable for shares of the Fund sold 8,463,476
Receivable for variation margin on open futures contracts
21,201
Unamortized organization expenses (Note 1 ) 40,103
Total assets 350,437,743
Liabilities
Distributions payable to shareholders $470,203
Payable for shares of the Fund repurchased 835,171
Payable for compensation of Manager (Note 2 ) 488,703
Payable for compensation of Trustees (Note 2 ) 734
Payable for investor servicing and custodian fees (Note 2) 17,829
Payable for administrative expenses (Note 2 ) 5,819
Payable for distribution fees--Class A (Note 2 ) 137,862
Payable for distribution fees--Class B (Note 2 ) 32,448
Other accrued expenses 30,374
Total liabilities 2,019,143
Net assets $348,418,600
<PAGE>
Represented by
Paid-in capital (Note 4 ) $329,257,040
Distributions in excess net investment income (80,291)
Accumulated net realized loss on investment transactions (1,332,675)
Net unrealized appreciation of investments and futures contracts 20,574,526
Total--Representing net assets applicable to capital shares outstanding $348,418,600
Computation of net asset value and offering price
Net asset value and redemption price of Class A shares
($315,230,552 divided by 33,121,165 shares) $9.52
Offering price per share (100/95.25 of $9.52)* $9.99
Net asset value and offering price of Class B shares
($33,188,048 divided by 3,489,331)** $9.51
* On single retail sales of less than $25,000. On sales of $25,000 or more and on group
sales the offering price is reduced.
** Redemption price per share is equal to net asset value less any applicable contingent
deferred sales charge.
/TABLE
<PAGE>
<TABLE>
<CAPTION>
Statement of
operations
<S> <C> <C>
Six months ended December 31, 1993 (Unaudited)
Tax exempt interest income $9,688,903
Expenses:
Compensation of Manager (Note 2 ) $954,920
Investor servicing and custodian fees (Note 2 ) 96,421
Compensation of Trustees (Note 2 ) 7,562
Reports to shareholders 9,149
Postage 15,615
Auditing 8,267
Legal 7,923
Administrative services (Note 2 ) 6,050
Registration fees 13,106
Amortization of organization expenses (Note 1 ) 9,358
Distribution fees--Class A (Note 2 ) 280,483
Distribution fees--Class B (Note 2 ) 105,324
Other 5,982
Total expenses 1,520,160
Net investment income 8,168,743
Net realized gain on investments (Notes 1 and 3 ) 399,141
Net realized loss on futures contracts (Notes 1 and 3 ) (935,189)
Net unrealized appreciation of investments and futures
contracts during the period 3,483,462
Net gain on investments 2,947,414
Net increase in net assets resulting from operations $11,116,157
/TABLE
<PAGE>
<TABLE>
<CAPTION>
Statement of
changes in net assets
Six months ended Year ended
December 31 June 30
1993 1993
<S> <C> <C>
Increase in net assets
Operations:
Net investment income $8,168,743 $14,210,952
Net realized gain on investments 399,141 3,518,716
Net realized gain (loss) on futures contracts (935,189) (221,324)
Net unrealized appreciation of investments and
futures contracts 3,483,462 10,742,202
Net increase in net assets resulting from operations 11,116,157 28,250,546
Distributions to shareholders from:
Net investment income:
Class A (7,677,060) (14,061,548)
Class B (564,682) (200,715)
Net realized gain on investments:
Class A (3,291,397) (2,061,699)
Class B (335,987) --
Increase from capital share transactions (Note 4 ) 53,251,313 88,030,490
Total increase in net assets 52,498,344 99,957,074
Net assets
Beginning of period 295,920,256 195,963,182
End of period (including distributions in excess of
net investment income of $80,291 and $32,884,
respectively) $348,418,600 $295,920,256
/TABLE
<PAGE>
<TABLE>
<CAPTION>
Financial Highlights*
(For a share outstanding throughout the period)
For the period
January 4, 1993 August 24, 1990
Six months (commencement Six months (commencement
ended of operations) to ended Year ended of operations) to
December 31, June 30 December 31 June 30 June 30
1993** 1993 1993** 1993 1992 1991
Class B Class A
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $9.53 $9.17 $9.53 $9.08 $8.65 $8.50
Investment operations
Net Investment Income .22 .21(e) .25 .56(a) .60(a) .52(a)
Net Realized and Unrealized Gain on
Investments .08 .36 .08 .53 .45 .15
Total from Investment operations .30 .57 .33 1.09 1.05 .67
Less Distributions from:
Net Investment Income (.23) (.21) (.25) (.56) (.60) (.52)
Net Realized Gain on Investments (.09) -- (.09) (.08) (.02) --
Total Distributions (.32) (.21) (.34) (.64) (.62) (.52)
Net Asset Value, End of Period $9.51 $9.53 $9.52 $9.53 $9.08 $8.65
Total Investment Return at Net Asset
Value (%) (b) 6.52(c) 12.84(c) 7.44(c) 12.44 12.57 9.46(c)
Net Assets, End of Period (in thousands) $32,770 $17,881 $315,231 $278,039 $195,963 $109,739
Ratio of Expenses to Average Net
Assets (%) 1.53(c) .78(d) .90(c) .77(a) .60(a) .48(a)(c)(d)
Ratio of Net Investment Income to
Average Net Assets (%) 5.96(c) 2.21(d) 6.09(c) 5.94(a) 6.73(a) 6.92(a)(c)(d)<PAGE>
Portfolio Turnover (%) 46.85 106.69 46.85 106.69 72.73 46.72(e)
* Financial Highlights for periods ended through June 30, 1993 have been restated to conform with requirements issued
by the SEC in April 1993.
** Unaudited
(a) Reflects a voluntary absorption of expenses incurred by the Fund and an expense limitation applicable during the
period. As a result of these limitations, expenses of the Fund for the year ended June 30, 1992 and the period ended
June 30, 1991, reflect a reduction of $0.02 and $0.04 per share, respectively. For the year ended June 30, 1993,
expenses reflect a reduction of less than $0.01 per share.
(b) Total investment return assumes dividend reinvestment and does not reflect the effect of sales charges.
(c) Annualized
(d) Per share investment income, expenses and net investment income for the periods ended June 30, 1991 and June 30,
1993 have been determined on the basis of the weighted average number of shares outstanding for the period.
(e) Not annualized
</TABLE>
<PAGE>
Notes to
financial statements
December 31, 1993
Note 1 Significant accounting policies
The Fund is registered under the Investment Company Act of 1940,
as amended, as a non-diversified, open-end management investment
company. The Fund seeks as high a level of current income exempt
from federal income tax as Putnam Investment Management believes
is consistent with preservation of capital by investing primarily
in a portfolio of Florida tax-exempt securities.
The Fund offers both Class A and Class B shares. Class A shares
are sold with a maximum front-end sales charge of 4.75%. Class B
shares do not pay a front-end sales charge, but pay a
distribution fee, and are subject to a contingent deferred sales
charge if those shares are redeemed with in six years of
purchase. Expenses of the Fund are borne pro-rata by the holders
of both classes of shares, except that each class bears expenses
unique to that class (including the distribution fees applicable
to such class), and votes as a class only with respect to its own
distribution plan or other matters on which a class vote is
required by law as determined by the Trustees. Shares of each
class would receive their pro-rata share of the net assets of the
Fund, if the Fund were liquidated. In addition, the Trustees
declare separate dividends on each class of shares.
The following is a summary of significant accounting policies
followed by the Fund in the preparation of its financial
statements. The policies are in conformity with generally
accepted accounting principles.
A) Security valuation Tax exempt bonds and notes are stated on
the basis of valuations provided by a pricing service, approved
by the Trustees, which uses information with respect to
transactions in bonds, quotations from bond dealers, market
transactions in comparable securities and various relationships
between securities in determining value. The fair value of
restricted securities is determined by the Manager following
procedures approved by the Trustees, and such valuations and
procedures are reviewed periodically by the Trustees.
B) Security transactions and related investment income Security
transactions are accounted for on the trade date (date the order
to buy or sell is executed). Interest income is recorded on the
accrual basis.
C) Federal taxes It is the policy of the Fund to distribute all
of its income within the prescribed time and otherwise comply
with the provisions of the Internal Revenue Code applicable to
regulated investment companies. It is also the intention of the
Fund to distribute an amount sufficient to avoid imposition of
any excise tax under Section 4982 of the Internal Revenue Code of
1986. 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.
D) Distributions to shareholders Income dividends are declared
daily by the Fund and are distributed monthly. Capital gains
distributions, if any, are recorded on the ex-dividend date and
paid annually.
E) Amortization of bond premium and discount premium resulting
from the purchase of securities in excess of maturity value is
amortized on a yield-to- maturity basis. Discount on zero-coupon
bonds is accreted according to the effective yield method.
F) futures contract is an agreement between two parties to buy or
sell a security at a set price on a future date. Upon entering
into such a contract the Fund is required to pledge to the broker
an amount of cash or securities equal to the minimum "initial
margin" requirements of the exchange. Pursuant to the contract,
the Fund agrees to receive from or pay to the broker an amount of
cash equal to the daily fluctuation in value of the contract.
Such receipts or payments are known as "variation margin," and
are recorded by the Fund as unrealized gains or losses. 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
potential risk to the Fund is that the change in value of the
underlying securities may not correspond to the change in value
of the futures contracts.
G) Unamortized organization expenses incurred by the Fund in
connection with its organization, its registration with the
Securities and Exchange Commission and with various states, and
the initial public offering of its Class A shares aggregated
$75,474. These expenses are being amortized over a five-year
period based on current and projected net asset levels.
Note 2 Management fee, administrative services, and other
transactions
Compensation of Putnam Investment Management, Inc. (formerly
known as The Putnam Management Company, Inc.), the Fund's
Manager, a wholly-owned subsidiary of Putnam Investments, Inc.
(formerly known as The Putnam Companies, Inc.), for management
and investment advisory services is paid quarterly based on the
average net assets of the Fund for the quarter. Such fee is based
on the following annual rates: 0.6% of the first $500 million of
the Fund's average net assets, 0.5% of the next $500 million,
0.45% of the next $500 million and 0.4% of any amount over $1.5
billion, subject to reduction in any year by the amount of
certain brokerage commissions and fees (less expenses) received
by affiliates of the Manager on the Fund's portfolio
transactions.
The Fund also reimburses the Manager 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. For the six months ended December 31, 1993, the Fund
paid $6,050 for these services.
Trustees of the Fund receive an annual Trustee's fee of $1,120,
and an additional fee for each Trustees' meeting attended.
Trustees who are not interested persons of the Manager 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 the Putnam
Fiduciary Trust Company (PFTC), a subsidiary of Putnam
Investments, Inc. Investor servicing agent functions are provided
by Putnam Investor Services, a division of PFTC. Fees paid for
these investor servicing and custodial functions for the six
months ended December 31, 1993 amounted to $96,421.
Investor servicing and custodian fees reported in the Statement
of operations for the six months ended December 31, 1993 have
been reduced by credits allowed by PFTC.
On July 8, 1993, the Fund has adopted a distribution plan with
respect to its Class A shares (the "Class A Plan") pursuant to
Rule 12b-1 under the Investment Company Act of 1940. The purpose
of Class A Plan is to compensate Putnam Mutual Funds Corp.
(formerly known as Putnam Financial Services, Inc.) a
wholly-owned subsidiary of Putnam Investments Inc., for services
provided and expenses incurred by it in distributing Class A
shares. The Trustees have approved payment by The Fund to Putnam
Mutual Funds Corp. at an annual rate of 0.15% of the average net
assets attributable to Class A shares owned on July 8, 1993 and
0.20% of average net assets attributable to Class A shares owned
after that date. For the period July 8, 1993 to December 31,
1993, the Fund paid Putnam Mutual Funds Corp. distribution fees
of $280,483.
The Fund has adopted a Distribution Plan with respect to its
Class B shares (the "Class B Plan") pursuant to Rule 12b-1 under
the Investment Company Act of 1940. The purpose of the Class B
Plan is to compensate Putnam Mutual Funds Corp. for services
provided and expenses incurred by it, in distributing Class B
shares. The Class B Plan provides for payments by the Fund to
Putnam Mutual Funds Corp. at an annual rate of 0.85% of the
Fund's average net assets attributable to Class B shares.
Payments under the plan cannot exceed 1.00% without shareholder
approval. For the six months ended December 31, 1993, the Fund
paid Putnam Mutual Funds Corp. net distribution fees of $105,324
for Class B shares.
During the six months ended December 31, 1993, Putnam Mutual
Funds Corp. (formerly known as Putnam Financial Services, Inc.),
acting as an underwriter, received net commissions of $50,519
from the sale of Class A shares of the Fund.
A deferred sales charge of up to 1.00% is assessed on certain
redemptions of Class A shares purchased as part of an investment
of $1 million or more. For the six months ended December 31,
1993, Putnam Mutual Funds Corp., acting as underwriter, received
$109 on such redemptions.
Putnam Mutual Funds Corp. also receives the proceeds on the
contingent deferred sales charges on its Class B certain share
redemptions within six years of purchase. The charge is based on
declining rates, which begin at 5.00% of the net asset value of
the redeemed shares. Putnam Mutual Funds Corp. has received
contingent deferred sales charges of $15,333 from redemptions
during the six months ended December 31, 1993.
<PAGE>
<TABLE>
<CAPTION>
Note 3 Purchases and sales of securities
During the six months ended December 31, 1993, purchases and sales of investment
securities other than short-term municipal obligations aggregated $122,299,165 and
$86,584,921, respectively.
In determining the net gain or loss on securities sold, the cost of securities has been
determined on the identified cost basis.
Transactions in futures contracts during the year are summarized as follows:
Sales of Futures Contracts
Number of Aggregate
Contracts Face Value
<S> <C> <C>
Contracts open at beginning of period 100 $11,115,420
Contracts opened 825 93,749,670
925 104,865,090
Contracts closed (755) (85,769,580)
Open at end of period 170 $19,095,510
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Note 4 Capital shares
At December 31, 1993, there was an unlimited number of shares of beneficial interest
authorized, divided into two classes, Class A and Class B capital stock. Transactions in
capital shares were as follows:
Six months ended Year ended
December 31 June 30
1993 1993
Class A Shares Amount Shares Amount
<S> <C> <C> <C> <C>
Shares sold 2,152,121 $49,278,862 10,345,170 $95,952,663
Shares issued in connection with
reinvestment of distributions 515,953 4,918,891 756,894 7,021,103
2,668,074 54,197,753 11,102,064 102,973,766
Shares repurchased (1,709,225) (16,393,308) (3,512,971) (32,555,901)
Net increase 958,849 $37,804,445 7,589,093 $70,417,865
January 4, 1993
(commencement of
Six months ended operations) to
December 31 June 30
1993 1993
Class B Shares Amount Shares Amount
Shares sold 1,678,867 $16,092,829 1,899,662 $17,827,168
Shares issued in connection with
reinvestment of distributions 43,823 416,875 7,835 74,081
1,722,690 16,509,704 1,907,497 17,901,249
Shares repurchased (110,192) (1,062,836) (30,664) (288,624)
Net increase 1,612,498 $15,446,868 1,876,833 $17,612,625
/TABLE
<PAGE>
Note 5 Reclassification of Capital Accounts
Effective July 1, 1993, Putnam Florida Tax Exempt Income Fund has
adopted the provisions of Statement of Position (SOP) 93-2
"Determination, Disclosure and Financial Statement Presentation
of Income, Capital Gain and Return of Capital Distributions, by
Investment Companies." The purpose of this SOP is to report the
accumulated net investment income (loss) and accumulated net
realized gain (loss) accounts in such a manner as to approximate
amounts available for future distributions (or to offset future
realized capital gains) and to achieve uniformity in the
presentation of distributions by investment companies.
As a result of the SOP, the Fund has reclassified $25,592 to
increase undistributed net investment income and decrease
additional paid in capital by the same amount.
These adjustments represent the cumulated amounts necessary to
report these balances through June 30, 1993, the close of the
Fundmost recent fiscal year end for financial reporting and tax
purposes.
Fund performance supplement
Putnam Florida Tax Exempt Income Fund is a portfolio managed for
high current income free from federal income and Florida
intangibles taxes and consistent with capital preservation. This
fund invests at least 80% of its portfolio in investment-grade
tax-exempt bonds. The balance may be invested in securities rated
below investment-grade.
The Lehman Brothers Municipal Bond Index is an unmanaged list of
approximately 8,000 investment-grade, fixed rate, long-term
maturity tax-exempt bonds, which are selected to be
representative of the market in terms of price movement and
sector distribution. The average quality of bonds held in the
index may differ from the average quality of those bonds in which
the fund invests. The index does not include bonds in certain of
the lower rating classifications in which the fund may invest.
The index does not take into account brokerage commissions or
other costs and may pose different risks from the fund. Total
return performance for the index reflects mathematically derived
changes of market price and reinvestment of interest payments, as
computed by Lehman Brothers. The fund's portfolio contains
securities that do not match those in the index.
The Consumer Price Index is a commonly used measure of inflation;
it does not represent an investment return.
This fund performance supplement has been prepared by Putnam
Management to provide further detail about the fund and the
indexes used for performance comparisons. It is not part of the
portfolio of investments owned or the financial statements and
notes. <PAGE>
Putnam
Florida
Tax Exempt
Income Fund
Fund information
Investment manager
Putnam Investment Management
One Post Office Square
Boston, MA 02109
Marketing services
Putnam Mutual Funds
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
(DALBAR logo)
Putnam Investor Services
has received the DALBAR
award each year since the
award's 1990 inception.
In more that 10,000 tests
of 38 shareholder
service components,
Putnam outperformed
the industry standard
in every category.
A46/72 10471<PAGE>
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
John R. Verani
Vice President
Gary N. Coburn
Vice President
James E. Erickson
Vice President
Richard P. Wyke
Vice President and Fund Manager
William N. Shiebler
Vice President
John D. Hughes
Vice President and Treasurer
Paul Oil
Vice President
Beverly Marcus
Clerk and Assistant Treasurer
This report is for the information of shareholders of Putnam
Florida Tax Exempt Income Fund. It may also be used as sales
literature when preceded or accompanied by the current
prospectus, which gives details of sales charges, investment
objectives and operating policies of the fund.
<PAGE>
- -----------------
Bulk Rate
U.S. Postage
Paid
Boston, MA
Permit No. 53749
- -----------------
PUTNAMINVESTMENTS
The Putnam Funds
One Post Office Square
Boston, Massachusetts 02109
<PAGE>
APPENDIX TO FORM N30D FILINGS TO DESCRIBE DIFFERENCES BETWEEN
PRINTED AND EDGAR-FILED TEXTS:
(1) Rule lines for tables are omitted.
(2) Boldface and italic typefaces are displayed in normal type.
(3) Headers (e.g, the name of the fund) and footers (e.g., page
numbers and "The accompanying notes are an integral part of these
financial statements") are omitted.
(4) Because the printed page breaks are not reflected, certain
tabular and columnar headings and symbols are displayed
differently in this filing.
(5) Bullet points and similar graphic signals are omitted.
(6) Page numbering is different.
