PUTNAM
NEW YORK
TAX EXEMPT
OPPORTUNITIES
FUND
[GRAPHIC OMITTED:
art work]
SEMIANNUAL REPORT
March 31, 1995
[LOGO: BOSTON - LONDON - TOKYO]
<PAGE>
PERFORMANCE HIGHLIGHTS
o Morningstar, an independent rating agency, awarded the fund's class A shares
five out of five stars for risk-adjusted performance as of March 31, 1995.*
o Performance should always be considered in light of a fund's investment
strategy. This fund is designed for investors seeking high current income
free from federal, New York state, and New York City personal income taxes.
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SEMIANNUAL RESULTS AT A GLANCE
------------------------------------------------------------------------------
CLASS A CLASS B
TOTAL RETURN: NAV POP NAV CDSC
------------------------------------------------------------------------------
(change in value during period
plus reinvested distributions)
6 months ended 3/31/95 4.86% -0.09% 4.53% -0.47%
CLASS A CLASS B CLASS M
SHARE VALUE: NAV POP NAV NAV POP
------------------------------------------------------------------------------
9/30/94 $8.48 $8.90 $8.48 -- --
2/10/95<F1> -- -- -- $8.51 $8.80
3/31/95 8.62 9.05 8.62 8.62 8.91
CAPITAL GAINS<F2>
LONG- SHORT-
DISTRIBUTIONS: NO. INCOME TERM TERM TOTAL
------------------------------------------------------------------------------
Class A 6 $0.260672 -- -- $0.260672
Class B 6 0.234260 -- -- 0.234260
Class M 2 0.071417 -- -- 0.071417
CLASS A CLASS B CLASS M
CURRENT RETURN: NAV POP NAV NAV POP
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End of period
Current dividend rate<F3> 6.16% 5.87% 5.55% 5.88% 5.69%
Taxable equivalent<F4> 11.60 11.05 10.45 11.07 10.71
Taxable equivalent<F6> 11.04 10.52 9.94 10.54 10.20
Current 30-day SEC yield<F5> 6.04 5.75 5.30 5.73 5.53
Taxable equivalent<F4> 11.37 10.82 9.98 10.79 10.41
Taxable equivalent<F6> 10.82 10.30 9.50 10.27 9.91
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Performance data represent past results and are not indicative of future
returns. For performance over longer periods, see page 8. POP assumes 4.75%
maximum sales charge for class A shares and 3.25% for class M shares. CDSC
assumes 5% maximum contingent deferred sales charge. <F1>The fund began
offering class M shares on 2/10/95. <F2>Capital gains are taxable for federal
and, in most cases, state tax purposes. For some investors, investment income
may also be subject to the federal alternative minimum tax. Investment income
may be subject to state and local taxes. <F3>Income portion of most recent
distribution, annualized and divided by NAV or POP at end of period.
<F4>Assumes maximum combined 46.88% federal, state, and city tax rate.
Results for investors subject to lower tax rates would not be as advantageous.
<F5>Based only on investment income, calculated using SEC guidelines.
<F6>Combined 44.19% state and federal tax rate.
* Morningstar rates funds in relation to other funds with similar investment
objectives, based on the fund's 3-year average annual returns and adjusted for
risk factors and sales charges. Ratings are updated monthly. The five-star
rating for the 3-year period ended 3/31/95, puts the fund in the top 10.0%
among all 638 municipal funds rated. Past performance is not indicative of
future results.
<PAGE>
FROM THE CHAIRMAN
[GRAPHIC OMITTED:
Photo of
George Putnam]
(C) Karsh, Ottawa
Dear Shareholder:
The early months of Putnam New York Tax Exempt Opportunity Fund's current
fiscal year represented a turbulent period for Empire State municipal-bond
investors. January brought a perceptibly brighter mood, and a market rise that
significantly buoyed your fund's performance. It is gratifying, therefore, to
be able to report positive results for the six months ended March 31, 1995.
Tax-conscious New York investors finally seemed ready to concede that inflation
is under control and that a reasonable level of economic growth can be
sustained. The expectation of sharply reduced volume in new bonds coming to
market in 1995 raised the prospect of brisk demand, and higher prices, for
existing issues.
As your fund moves into the second half of fiscal 1995, Fund Manager Michael
Bouscaren is optimistic about its prospects. In our opinion, New York's economy
remains strong, interest rates appear to be stabilizing, and investors seem to
have put many of last year's uncertainties behind them. In the report that
follows, Mike reviews the fiscal year's first half and offers his insights for
the months ahead.
Respectfully yours,
/s/ George Putnam
George Putnam
Chairman of the Trustees
May 17, 1995
<PAGE>
REPORT FROM THE FUND MANAGER
Michael F. Bouscaren
The headlines said it all: "With Munis Leading the Way, Bonds Stage a
Rebound."* This year's rebound in the municipal-bond market has many
investors wondering: Are these the same municipal bonds whose dismal
performance was as appealing as the notion of replacement players in major
league baseball?
Putnam New York Tax Exempt Opportunities Fund has successfully rebounded from
the negative returns that plagued all municipal bond funds in 1994. For the
six months ended March 31, 1995, the fund's class A shares provided a total
return of 4.86% at net asset value (NAV). Its class B shares delivered 4.53%,
also at NAV. As of February 10, 1995, the fund began offering class M shares.
For the first three months of 1995, your fund shared in the current
municipal-bond rally. The fund's class A and class B shares returned 5.96%
and 5.80%, respectively, both at NAV.
In addition, the fund continued to provide shareholders with attractive
tax-free income. The fund's dividend yield of 6.16% for class A shares at NAV
would translate into an 11.60% taxable yield when the maximum federal, New
York State, and New York City income taxes are taken into account.
o ELEMENTS OF A RALLY
The municipal-bond market's mood swing from depression to euphoria was mainly
fueled by the belief that the Federal Reserve Board was at or near the end of
its program of interest-rate increases. Underlying the current rally,
however, was investors' recognition of several positive factors.
First, the supply and demand imbalance discussed in the fund's annual
report last September has begun to solidify. Following the 44% drop in
municipal-bond issuance to $162 billion in 1994, analysts had predicted
at least an additional 20% drop this year to $120 billion (see chart on
page 5). According to the
* The Wall Street Journal, April 5, 1995.
<PAGE>
April 17, 1995 edition of The Wall Street Journal, long-term issuance in New
York is down more than 50% from the same period last year. The dearth of new
issues, coupled with mergers and consolidation among municipal-bond issuers,
served to drive prices higher as investors chased fewer and fewer bonds.*
The market's resiliency following the Orange County, California, bankruptcy
has also added to investors' confidence. Flying in the face of the initial
doomsday predictions, the market responded with yields dropping more than 90
basis points (nine-tenths of one percent) this year. Bond yields move in the
opposite direction of their prices.
o POSITIVE VIEW OF NEW YORK MARKET
The New York state legislature missed its April 1, 1995, deadline for passing
a budget for fiscal 1996. Unlike previous budgetary stalemates, however, the
legislature has taken the extraordinary step of committing to meeting
debt-service payments on state bonds through the end of the new fiscal year
regardless of the status of the budget.
Additionally, we believe the Pataki administration's theme of fiscal prudence
offers the potential for more cost-efficient municipal services. This, in
turn, could have a positive effect
[GRAPHIC OMITTED: bar chart "A DECLINE IN SUPPLY" showing number of
monthly issues of municipal bonds ranging from 400 to approximately
1050 from 1/94 through 3/95. Chart caption is: "Chart shows monthly
volume of municipal-bond issuance. Source: Securities Data Co. Used
by permission."]
* Despite a favorable supply and demand situation, municipal bonds can be
affected by many factors, including changes in interest rates.
<PAGE>
on state-appropriated debt, that is, the bonds used to finance public
programs. Your fund holds a large amount of these bonds, particularly those
insured to fund hospitals and dormitories in the state university system.
The legislature is also considering a constitutional amendment that would
state borrowing and significantly curtail the bond issuance from the cap
country's second-highest issuer of municipal debt. While debt reform is still
being debated in Albany, Governor Pataki appears committed to streamlining
New York's borrowing. With a scant volume of new issuance and further
reductions being considered, the expected redemptions of high-coupon bonds,
which have been refunded or may be callable this year, could drive the prices
of existing New York debt higher.
o SECTOR ALLOCATION HELD STEADY
The areas of the municipal-bond market in which the fund invests have changed
very little since the beginning of the fiscal year. A lack of change in
sector allocation, however, should not be confused with a lack of change in
the bonds held in the portfolio.
In the daily management of the fund, we continually search for municipal
bonds that offer the right balance of credit quality, yield, and relative
price stability. To do so, we constantly re-evaluate your current portfolio
holdings. Under the right circumstances, we may swap bonds; that is, sell one
holding while simultaneously buying another issue in order to take advantage
of differences in such factors as coupon rates, maturity, or marketability.
As outlined above, about a third of the fund's assets continue to be invested
in state-appropriated debt of New York's hospitals and university housing. A
major part of the fund's assets are invested in utilities and water and sewer
systems. Some examples include Consolidated Edison, Brooklyn Union Gas, and
Niagara Mohawk.
<PAGE>
[GRAPHIC OMITTED: bar chart "TOP INDUSTRY SECTORS*"
showing: Utilities, 28.0%; Political Subdivisions, 14.9%;
Hospitals/Health Care, 14.8%; with footnote of
* Based on a percentage of net assets on 3/31/95.
Holdings will vary over time.]
o OUTLOOK FOR THE REMAINDER OF FISCAL 1995
As we look to the second half of the fund's fiscal year, we believe the
portfolio is well positioned to take advantage of what is considered to be
one of the nation's broadest and most diversified state economies. While
there can be no guarantees, we believe the New York municipal-bond market
will continue to offer an attractive investment alternative for tax-strapped
New Yorkers.
As always, we will continue to watch political events in Albany for any
developments that may affect the fund's holdings. As a matter of course, we
will also continue to use Putnam Management's strong credit research and
analytical abilities to pinpoint securities that we believe offer the best
combinations of current income and appreciation potential.
The views expressed in this report are exclusively those of Putnam
Management, and are not meant as investment advice. Although the
described holdings were viewed favorably as of 3/31/95, there is no
guarantee the fund will continue to hold these securities in the future.
<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. For comparative purposes, we
show how the fund performed relative to appropriate indexes and benchmarks.
TOTAL RETURN FOR PERIODS ENDED 3/31/95
LEHMAN BROS. CONSUMER
CLASS A CLASS B MUNICIPAL PRICE
NAV POP NAV CDSC BOND INDEX INDEX
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6 months 4.86% -0.09% 4.53% -0.47% 5.54% 1.34%
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1 year 6.20 1.17 5.62 0.62 7.43 2.85
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3 years 20.61 14.92 -- -- 23.69 8.69
Annual average 6.45 4.74 -- -- 7.34 2.82
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Life of class A<F1> 36.89 30.44 -- -- 42.53 13.41
Annual average 7.40 6.23 -- -- 8.39 2.90
---------------------------------------------------------------------------
Life of class B<F1> -- -- 1.34 -2.46 0.39 3.56
Annual average -- -- 1.14 -2.11 0.33 3.03
---------------------------------------------------------------------------
Fund performance data do not take into account any adjustment for taxes payable
on reinvested distributions or, for class A shares, distribution fees prior to
implementation of the class A distribution plan in 1990. <F1>The fund began
operations on 11/7/90 offering shares now known as class A; effective 2/1/94,
the fund began offering class B shares; effective 2/10/95, the fund began
offering class M shares. Performance data represent past results will differ for
each share class, and should not be taken as an 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. Performance
information for class M shares is not shown due to the brevity of the reporting
period.
<PAGE>
TERMS AND DEFINITIONS
CLASS A SHARES are generally subject to an initial sales charge.
CLASS B SHARES may be subject to a sales charge upon redemption.
CLASS M SHARES have a lower initial sales charge and a higher 12b-1 fee than
class A shares and no sales charge on redemption.
NET ASSET VALUE (NAV) is the value of all your fund's assets, minus any
liabilities, divided by the number of outstanding shares, not including any
initial or contingent deferred sales charge.
PUBLIC OFFERING PRICE (POP) is the price of a mutual fund share plus the
maximum sales charge levied at the time of purchase. POP performance
figures shown here assume the maximum 4.75% sales charge for class A shares
and 3.25% for class M shares.
CONTINGENT DEFERRED SALES CHARGE (CDSC) is a charge applied at the time of the
redemption of class B shares and assumes redemption at the end of the period.
Your fund's CDSC declines from a 5% maximum during the first year to 1% during
the sixth year. After the sixth year, the CDSC no longer applies.
COMPARATIVE BENCHMARKS
THE LEHMAN BROTHERS MUNICIPAL BOND INDEX is an unmanaged list of fixed-rate
investment-grade tax-exempt bonds representative of the municipal bond market.
The index does not take into account brokerage commissions or other costs, may
include bonds different from those in the fund, and may pose different risks
than the fund.
CONSUMER PRICE INDEX (CPI) is a commonly used measure of inflation; it does not
represent an investment return.
<PAGE>
PUTNAM GROWTH FUNDS
Asia Pacific Growth Fund
Capital Appreciation Fund<F1>
Diversified Equity Trust
Europe Growth Fund
Global Growth Fund
Health Sciences Trust
Investors Fund
Natural Resources Trust
New Opportunities Fund
OTC Emerging Growth Fund
Overseas Growth Fund
Vista Fund
Voyager Fund
PUTNAM GROWTH AND INCOME FUNDS
Convertible Income-Growth Trust
Equity Income Fund
The George Putnam Fund of Boston
The Putnam Fund for Growth and Income
Growth and Income Fund II
Managed Income Trust
Utilities Growth and Income Fund
PUTNAM INCOME FUNDS
Adjustable Rate U.S. Government Fund
American Government Income Fund
Diversified Income Trust
Federal Income Trust
Global Governmental Income Trust
High Yield Advantage Fund
High Yield Trust
Income Fund
Preferred Income Fund
Intermediate U.S. Government Income Fund
U.S. Government Income Trust
PUTNAM TAX-FREE INCOME FUNDS
Intermediate Tax Exempt Fund
Municipal Income Fund
Tax Exempt Income Fund
Tax-Free High Yield Fund
Tax-Free Insured Fund
STATE TAX-FREE INCOME FUNDS<F2>
Arizona, California, Florida, Massachusetts, Michigan, Minnesota, New Jersey,
New York, Ohio, and Pennsylvania
LIFESTAGES(SM) FUNDS
Putnam Asset Allocation Funds -- three investment portfolios that spread your
money across a variety of stocks, bonds, and money market investments to help
maximize your return and reduce your risk.
The three portfolios:
Putnam Asset Allocation: Balanced Portfolio
Putnam Asset Allocation: Conservative Portfolio
Putnam Asset Allocation: Growth Portfolio
<PAGE>
MOST CONSERVATIVE INVESTMENTS<F3>
PUTNAM MONEY MARKET FUNDS:
California Tax Exempt Money Market Fund
Money Market Fund
New York Tax Exempt
Money Market Fund
Tax Exempt Money Market Fund
CDS AND SAVINGS ACCOUNTS<F4>
<F1> Temporarily closed to new investment.
<F2> Not available in all states.
<F3> Relative to above.
<F4> Not offered by Putnam Investments. Certificates of deposit offer a fixed
rate of return and may be insured, up to certain limits, by federal/state
agencies. Savings accounts may also be insured up to certain limits.
Please call your financial advisor or Putnam at 1-800-225-1581 to obtain a
prospectus for any Putnam fund. It contains more complete information,
including charges and expenses. Please read it carefully before you invest
or send money.
<PAGE>
PORTFOLIO OF INVESTMENTS OWNED
March 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
MUNICIPAL BONDS AND NOTES (101.8%)<F1>
PRINCIPAL AMOUNT RATINGS<F2> VALUE
NEW YORK (98.8%)
--------------------------------------------------------------------------------------------
<C> <S> <C> <C>
Babylon, Indl. Dev. Agcy. Resource Recvy. Rev. Bonds
$1,960,000 (Ogden Martin Syst.), Ser. B, 8 1/2s, 1/1/19 Baa $ 2,136,400
985,000 (Ogden Martin Syst.), Ser. C, 8 1/2s, 1/1/19 Baa 1,073,650
500,000 Battery Park, City Auth. Rev. Bonds
7.7s, 5/1/15 AAA 560,000
750,000 Buffalo, Swr. Auth. Rev. Bonds
Ser. D, American Municipal Bond Assurance Corp.
(AMBAC), 7 5/8s, 7/1/06 AAA 800,625
1,130,000 Erie Cnty., Wtr. Auth. Rev. Bonds
AMBAC, zero%, 12/1/17 AAA 223,175
2,725,000 Ithaca, Hsg. Corp. Mtge. Rev. Bonds
(Eddygate Park Apts. Project), 9s, 6/1/06 BBB/P 2,772,688
2,650,000 Jefferson Cnty., Indl. Dev. Agcy. Solid Waste Disposal
Rev. Bonds (Champion Intl. Corp.), 7.2s, 12/1/20 Baa 2,789,125
460,000 Metro. Trans. Auth. Svcs. Contract Fac. Rev. Bonds
(Trans. Fac.), Ser. 3, 7 1/2s, 7/1/16 AAA 520,375
600,000 Metro. Trans. Auth. Transit Fac. Rev. Bonds
Ser. F, 8 3/8s, 7/1/16 AAA 640,500
NY City, General Obligation (G.O.) Bonds
1,000,000 Ser. D, Group B, 8 1/4s, 8/1/11 A 1,095,000
300,000 Ser. B, 8 1/4s, 6/1/05 A 343,500
9,000,000 Ser. B, 7s, 8/15/16 A 9,180,000
12,625,000 Ser. B, 7s, 10/1/13 A 12,845,938
4,000,000 6 1/2s, 8/1/12 A 3,920,000
380,000 Ser. F, 3s, 11/15/00 A 330,600
NY City, Hsg. Dev. Corp. Multi-Fam. Hsg. Rev. Bonds
1,750,000 1st Ser. 85, Federal Housing Admin. (FHA) Insd.,
9 7/8s, 10/1/17 AA 1,811,250
600,000 Ser. A, FHA Insd., 9 5/8s, 1/1/19 A 630,750
6,000,000 NY City Ind. Dev. Agcy. Special Fac. Rev. Bonds
(American Airlines Inc., Project), 6.9s, 8/1/24 Baa 6,052,500
NY City, Indl. Dev. Agcy. Civic Fac. Rev. Bonds
1,500,000 (The Lighthouse Inc. Project), 6 1/2s, 7/1/22 AA 1,513,125
4,205,000 (Parking Corp. Project), 8 1/2s, 12/30/22 BB/P 4,215,513
140,000 NY City Muni. Wtr. Fin. Auth. Wtr. & Swr. Sys. Rev.
Bonds Ser. B, Financial Guaranty Insurance Corp.
(FGIC), 7 1/2s, 6/15/11 AAA 163,275
<PAGE>
MUNICIPAL BONDS AND NOTES
PRINCIPAL AMOUNT RATINGS<F2> VALUE
NEW YORK (continued)
--------------------------------------------------------------------------------------------
NY City, Muni. Wtr. Fin. Auth. Wtr. & Swr. Syst. Rev.
Bonds
$ 650,000 Refunded Ser. C, 7 3/4s, 6/15/20 AAA $ 751,563
45,000 Refunded, Ser. B, FGIC, 7 1/2s, 6/15/11 AAA 52,425
6,000,000 Ser. G, FGIC, 4.1s, 6/15/24 VMIG1 6,000,000
2,050,000 NY Dormitory Lady of Mercey Life 6.3s, 8/1/32 AA 2,073,063
900,000 NY Dorm State University Educational 6 1/4s, 5/15/08 BBB 901,125
3,500,000 NY Health & Hospital Corp., Ser. A, 6.3s, 2/15/20 Baa 3,154,375
NY State Dorm Auth. Rev. Bonds
2,200,000 (City U.), Ser. T, 10 1/4s, 7/1/12 Baa 2,271,500
1,100,000 (Rochester General Hosp.), FHA Insd., 8 3/4s, 2/1/25 AA 1,137,125
170,000 (City U.), Ser. D, 8 3/4s, 7/1/03 BBB 201,875
2,750,000 (Long Island Med. Ctr.), Ser. A, FHA Insd., 7 3/4s,
8/15/27 AAA 2,949,375
835,000 (NY Dept of Ed.), 7 3/4s, 7/1/21 Baa 907,019
1,000,000 (State U. Edl. Fac.), Ser. A, 7 5/8s, 5/15/05 Baa 1,135,000
750,000 (State U. Edl. Fac.), Ser. A, 7 1/2s, 5/15/13 Baa 850,313
605,000 (Cornell U.), Ser. A, 7 3/8s, 7/1/30 AA 655,669
500,000 (Wildwood School), 7.3s, 7/1/15 A 547,500
7,000,000 (State U. Edl. Fac.), Ser. B, 5 3/4s, 5/15/24 Baa 6,457,500
1,400,000 (Upstate Cmnty. Colleges), 5 1/2s, 7/1/14 Baa 1,267,000
725,000 (State U. Edl. Fac.), Ser. B, zero%, 5/15/09 Baa 308,125
NY State Energy Research & Dev. Auth. Elec. Fac. Rev.
Bonds
7,075,000 (Cons. Edison Co. of NY, Inc. Project), 9s, 8/15/20 Aa 7,313,781
1,600,000 (Cons. Edison Co. of NY, Inc. Project), 7 1/2s, 7/1/25 Aa 1,684,000
7,850,000 (Cons. Edison Co. of NY, Inc. Project), 6s, 3/15/28 AA 7,280,875
1,000,000 (Long Island Lighting Co.), 7.15s, 9/1/19 Ba 935,000
5,150,000 NY State Dorm Fac. 6 1/4s, 5/15/20 BBB 5,059,875
6,900,000 NY State Energy (Cons. Edison), 7 3/4s, 1/1/24 A 7,279,500
NY State Energy Research & Dev. Auth. Gas Fac. Rev.
Bonds
2,850,000 (Brooklyn Union Gas Co. Project), Ser. A, 9s, 5/15/15 A 2,917,688
4,000,000 (Brooklyn Union Gas Co. Project), 8 3/4s, 7/1/15 A 4,115,000
4,000,000 (Brooklyn Union Gas Co. Project), 6.952s, 7/1/15 A 4,230,000
4,000,000 (Brooklyn Union Gas Co. Project), 6.368s, 7/1/26 A 4,045,000
4,580,000 NY State Energy Research & Dev. Auth. Poll. Control
Rev. Bonds (Niagara Mohawk Pwr. Corp.),
Ser. I, 8 7/8s, 11/1/25 Baa 4,768,925
500,000 NY State Environmental Fac. Corp. Poll. Control Rev.
Bonds (State Wtr. Revolving Fund),
Ser A, 7 1/2s, 6/15/12 AA 548,750
NY State Hsg. Fin. Agcy. Svcs. Contract Oblig. Rev.
Bonds
700,000 Ser. A, 7.8s, 9/15/20 AAA 810,250
<PAGE>
MUNICIPAL BONDS AND NOTES
PRINCIPAL AMOUNT RATINGS<F2> VALUE
NEW YORK (continued)
--------------------------------------------------------------------------------------------
$ 500,000 Ser. A, 7 1/4s, 9/15/12 Baa $ 532,500
100,000 NY State Local Govt. Assistance Corp. Rev. Bonds
Ser. C, 7s, 4/1/21 AAA 111,750
NY State Med. Care Fac. Fin. Agcy. Rev. Bonds
350,000 (Nursing Home Insd. Mtge.), Ser. B, FHA Insd., 10 1/2s,
1/15/24 A 354,375
1,490,000 (Mercy Cmnty. Hosp.-Sisters of Mercy), Ser. A, 9.8s,
11/1/16 A 1,493,725
205,000 (Hosp. & Nursing Home Insd. Mtge.), Ser. B, FHA Insd.,
9 1/8s, 2/15/25 AA 212,175
960,000 (Hosp. & Nursing Home Insd. Mtge.), Ser. C, FHA Insd.,
9s, 2/15/26 A 993,600
625,000 (Hosp. & Nursing Home Insd. Mtge.), Ser. B, FHA Insd.,
8 7/8s, 8/15/27 AA 682,031
2,595,000 (Mt. Sinai Hosp. Insd. Mtge.), Ser. C, FHA Insd.,
8 7/8s, 1/15/26 AAA 2,734,481
400,000 (Kingston Hosp. Project), 8 7/8s, 11/15/17 A 416,500
2,645,000 (Mental Hlth. Svcs. Facs.), Ser. A, 8 7/8s, 8/15/07 BAA 2,899,581
750,000 (Brooklyn, Caledonia & Long Island Hosps. Insd. Mtge.),
Ser. A, FHA Insd., 8 1/2s, 1/15/22 AAA 788,438
20,000 (Mt. Sinai Hosp. Insd. Mtge.), Ser. C, FHA Insd.,
8 3/8s, 1/15/00 AAA 21,000
70,000 (Mental Hlth. Svcs. Fac.), Ser. A, 7.8s, 2/15/19 AAA 74,638
130,000 (Mental Hlth. Svcs. Fac.), Ser. A, 7.8s, 2/15/99 AAA 145,763
395,000 (Mental Hlth. Svcs. Fac.), Ser. B, 7 7/8s, 8/15/08 BAA 432,525
360,000 (Mental Hlth. Svcs. Fac.), Refunded, Ser. B, 7 7/8s,
8/15/08 AAA 414,450
230,000 (Mental Hlth. Svcs. Fac.), Ser. A, 7 1/2s, 2/15/21 Baa 248,113
620,000 (Mental Hlth. Svcs. Fac.), Refunded, Ser. A, 7 1/2s,
2/15/21 AAA 706,800
200,000 (Bronx, Lebanon & the Jamaica Hosps.), Ser. A, 7.1s,
2/15/27 Baa 203,250
700,000 (Hosp. & Nursing Home Insd. Mtge.), Ser. D, FHA Insd.,
6.6s, 2/15/31 AA 717,500
3,780,000 (Mental Hlth. Svcs. Fac.), Ser. F, 6 1/2s, 8/15/12 Baa 3,808,350
NY State Mtge. Agcy. Rev. Bonds
190,000 5th Ser., 9 3/4s, 10/1/10 AA 197,838
1,755,000 (Single-Fam.) Ser. 2, zero%, 10/1/14 AA 267,638
NY State Urban Dev. Corp. Rev. Bonds
2,510,000 (Correctional Fac.), 8s, 1/1/15 Aaa 2,626,088
1,285,000 (Onondaga Cnty. Convention Project), 7 7/8s, 1/1/20 Baa 1,399,044
500,000 (State Fac.), 7 1/2s, 4/1/20 Baa 536,875
500,000 (Correctional Fac.), Ser. 2, 7 1/2s, 1/1/18 Aaa 569,375
2,715,000 (Correctional Fac.), Financial Security Assurance, Inc.
(FSA), 5 1/2s, 1/1/15 Baa 2,426,531
<PAGE>
MUNICIPAL BONDS AND NOTES
PRINCIPAL AMOUNT RATINGS<F2> VALUE
NEW YORK (continued)
--------------------------------------------------------------------------------------------
$2,000,000 (Correctional Fac.), Ser. 4, 5 3/8s, 1/1/23 Baa $ 1,710,000
Port Auth. of NY & NJ Cons. Bonds
175,000 78th Ser., 6 1/2s, 10/15/08 AA 183,531
3,300,000 53rd Ser., 8.7s, 7/15/20 AA 3,432,000
2,800,000 5 5/8s, 7/15/21 AA 2,646,000
2,000,000 7 7/8s, 3/1/24 AA 2,087,500
5,000,000 Tompkins Co. NY Ind. Dev. Auth. Kendal 7 7/8s, 6/1/24 B 4,962,500
United Nations Dev. Corp. Rev. Bonds
200,000 (Sr. Lien, Phase 2 & 3), Ser. A, 7 7/8s, 7/1/26 Aaa 212,250
1,000,000 (Sr. Lien, Phase 2 & 3), Ser A, 6s, 7/1/12 A 1,001,250
3,250,000 (Sub Lien), 6 1/4s, 7/1/26 A 3,290,625
1,465,000 Valley Hlth. Dev. Corp. Mtge. Rev. Bonds
(Valley Hlth. Project), FHA Insd., 11.3s, 2/1/23 A 1,798,281
------------
183,566,056
PUERTO RICO (3.0%)
--------------------------------------------------------------------------------------------
500,000 Cmnwlth. of Puerto Rico, Hwy. & Trans. Auth. Rev. Bonds
Ser. S, 6 1/2s, 7/1/22 AAA 551,875
5,000,000 Puerto Rico Tel. Auth. Tel. Auth. Residual Interest
Bonds (RIBS)
(acquired 9/25/92, cost $4,837,500) 8.372s, 1/1/20<F3> A 4,987,500
------------
5,539,375
TOTAL INVESTMENTS $189,105,431
(cost $186,205,690)<F4> ============
<FN>
<F1> Percentages indicated are based on net assets of $185,842,662, which
correspond to a net asset value per class A, class B, and class M share of
$8.62, $8.62, and $8.62, respectively.
<F2> The Moody's or Standard & Poor's ratings indicated are believed to be the
most recent ratings available at March 31, 1995 for the securities listed.
Ratings are generally ascribed to securities at the time of issuance. While
the agencies may from time to time revise such ratings, they undertake no
obligation to do so, and the ratings do not necessarily represent what the
agencies would ascribe to these securities at March 31, 1995. Securities
rated by Putnam are indicated by "/P" and are not publicly rated.
<F3> Restricted as to public resale. At the date 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 the restricted security
owned at March 31, 1995 was $4,987,500 or 2.7% of net assets.
<F4> The aggregate identified cost on a tax cost basis is $186,205,690,
resulting in gross unrealized appreciation and depreciation of $6,005,650,
and $3,105,909, respectively, or net unrealized appreciation of $2,899,741.
The Fund had the following industry group concentrations greater than 10% on
March 31, 1995 (as a percentage of net assets):
Utilities 28.0%
Political Subdivisions 14.9
Hospitals/Health Care 14.8
</FN>
</TABLE>
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1995 (Unaudited)
ASSETS
-------------------------------------------------------------------------------
Investments in securities, at value
(identified cost $186,205,690) (Note 1) $189,105,431
-------------------------------------------------------------------------------
Cash 757,629
-------------------------------------------------------------------------------
Interest receivable 3,417,932
-------------------------------------------------------------------------------
Receivable for shares of the fund sold 820,563
-------------------------------------------------------------------------------
Receivable for securities sold 912,894
-------------------------------------------------------------------------------
Unamortized organization expenses (Note 1) 9,044
-------------------------------------------------------------------------------
TOTAL ASSETS 195,023,493
LIABILITIES
-------------------------------------------------------------------------------
Distributions payable to shareholders 273,103
-------------------------------------------------------------------------------
Payable for securities purchased 8,317,245
-------------------------------------------------------------------------------
Payable for shares of the fund repurchased 207,698
-------------------------------------------------------------------------------
Payable for compensation of Manager (Note 2) 254,804
-------------------------------------------------------------------------------
Payable for administrative services (Note 2) 2,027
-------------------------------------------------------------------------------
Payable for compensation of Trustees (Note 2) 372
-------------------------------------------------------------------------------
Payable for distribution fees (Note 2) 93,428
-------------------------------------------------------------------------------
Other accrued expenses 32,154
-------------------------------------------------------------------------------
TOTAL LIABILITIES 9,180,831
-------------------------------------------------------------------------------
NET ASSETS $185,842,662
-------------------------------------------------------------------------------
REPRESENTED BY
Paid-in capital (Note 4) $189,603,954
-------------------------------------------------------------------------------
Undistributed net investment income 65,360
-------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (6,726,393)
-------------------------------------------------------------------------------
Net unrealized appreciation of investments 2,899,741
-------------------------------------------------------------------------------
TOTAL -- REPRESENTING NET ASSETS APPLICABLE TO
CAPITAL SHARES OUTSTANDING $185,842,662
-------------------------------------------------------------------------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE
-------------------------------------------------------------------------------
Net asset value and redemption price per class A
share ($170,598,835 divided by 19,779,580 shares) $8.62
-------------------------------------------------------------------------------
(Offering price per share (100/95.25 of $8.62)* $9.05
-------------------------------------------------------------------------------
Net asset value and redemption price of class B shares
($15,202,922 divided by 1,764,043 shares)+ $8.62
-------------------------------------------------------------------------------
Net asset value and redemption price per class M share
($40,905 divided by 4,744 shares) $8.62
-------------------------------------------------------------------------------
(Offering price per share (100/96.75 of $8.62)** $8.91
-------------------------------------------------------------------------------
* 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.
** On single retail sales of less than $50,000. On sales of $50,000 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.
The accompanying notes are an integral part of these financial statements.
<PAGE>
STATEMENT OF OPERATIONS
Six months ended March 31, 1995 (Unaudited)
TAX EXEMPT INTEREST INCOME $6,543,284
-------------------------------------------------------------------------------
EXPENSES:
-------------------------------------------------------------------------------
Compensation of Manager (Note 2) $ 554,911
-------------------------------------------------------------------------------
Investor servicing and custodian fees (Note 2) 15,499
-------------------------------------------------------------------------------
Compensation of Trustees (Note 2) 4,626
-------------------------------------------------------------------------------
Reports to shareholders 12,501
-------------------------------------------------------------------------------
Auditing 14,317
-------------------------------------------------------------------------------
Legal 11,402
-------------------------------------------------------------------------------
Postage 13,062
-------------------------------------------------------------------------------
Registration fees 712
-------------------------------------------------------------------------------
Distribution fees -- Class A (Note 2) 166,162
-------------------------------------------------------------------------------
Distribution fees -- Class B (Note 2) 48,448
-------------------------------------------------------------------------------
Distribution fees -- Class M (Note 2) 8
-------------------------------------------------------------------------------
Amortization of organization expenses (Note 1) 6,269
-------------------------------------------------------------------------------
Other 4,990
-------------------------------------------------------------------------------
TOTAL EXPENSES 852,907
-------------------------------------------------------------------------------
NET INVESTMENT INCOME 5,690,377
-------------------------------------------------------------------------------
Net realized loss on investments (Note 3) (5,079,267)
-------------------------------------------------------------------------------
Net unrealized appreciation of investments during the period 7,873,390
-------------------------------------------------------------------------------
NET GAIN ON INVESTMENTS 2,794,123
-------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $8,484,500
-------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED
MARCH 31 SEPTEMBER 30
1995* 1994
-------------------------------------------------------------------------------
INCREASE IN NET ASSETS
-------------------------------------------------------------------------------
OPERATIONS:
-------------------------------------------------------------------------------
Net investment income $ 5,690,377 $ 11,083,480
-------------------------------------------------------------------------------
Net realized loss on investments (5,079,267) (1,647,127)
-------------------------------------------------------------------------------
Net unrealized appreciation (depreciation)
of investments 7,873,390 (10,999,505)
-------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS 8,484,500 (1,563,152)
-------------------------------------------------------------------------------
Distributions to shareholders
-------------------------------------------------------------------------------
From net investment income
-------------------------------------------------------------------------------
Class A (5,236,937) (10,901,830)
-------------------------------------------------------------------------------
Class B (321,245) (133,868)
-------------------------------------------------------------------------------
Class M (67) --
-------------------------------------------------------------------------------
From net realized gain on investments -- Class A -- (296,029)
-------------------------------------------------------------------------------
Increase (decrease) from capital share transactions
(Note 4) (1,446,240) 26,724,353
-------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS 1,480,011 13,829,474
NET ASSETS
-------------------------------------------------------------------------------
Beginning of period 184,362,651 170,533,177
-------------------------------------------------------------------------------
END OF PERIOD (including undistributed net investment
income and distributions in excess of net investment
income of $65,360 and $66,768, respectively) $185,842,662 $184,362,651
-------------------------------------------------------------------------------
* Unaudited
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the year)
FOR THE PERIOD FOR THE PERIOD
FEBRUARY 10, 1995 FEBRUARY 1, 1994
(COMMENCEMENT OF SIX MONTHS (COMMENCEMENT OF
OPERATIONS) TO ENDED OPERATIONS) TO
MARCH 31 MARCH 31 SEPTEMBER 30
------------------------------------------------------------------------------
1995<F1> 1995<F1> 1994
------------------------------------------------------------------------------
CLASS M CLASS B
------------------------------------------------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $8.51 $8.48 $9.07
------------------------------------------------------------------------------
INVESTMENT OPERATIONS
------------------------------------------------------------------------------
Net investment income .07 .28 .32
------------------------------------------------------------------------------
Net realized and unrealized
gain on investments .11 .09 (.60)
------------------------------------------------------------------------------
TOTAL FROM INVESTMENT OPERATIONS .18 .37 (.28)
------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
------------------------------------------------------------------------------
From net investment income (.07) (.23) (.31)
------------------------------------------------------------------------------
In excess of net investment income -- -- --
------------------------------------------------------------------------------
Net realized gain on investments -- -- --
------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS (.07) (.23) (.31)
------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $8.62 $8.62 $8.48
------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN AT
NET ASSET VALUE (%) <F3> 2.14<F4> 4.53<F4> (3.06)<F4>
------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(in thousands) $41 $15,203 $8,622
------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%) 0.12<F4> .75<F4> 1.05<F4>
------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (%) 0.46<F4> 2.80<F4> 3.39<F4>
------------------------------------------------------------------------------
Portfolio turnover (%) 49.14<F4> 49.14<F4> 13.85<F4>
------------------------------------------------------------------------------
<PAGE>
<CAPTION>
FINANCIAL HIGHLIGHTS [continued]
(For a share outstanding throughout the year)
FOR THE PERIOD
NOVEMBER 7, 1990
SIX MONTHS (COMMENCEMENT OF
ENDED OPERATIONS) TO
MARCH 31 YEAR ENDED SEPTEMBER 30 SEPTEMBER 30
---------------------------------------------------------------------------------------------------------------
1995<F1> 1994 1993 1992 1991
---------------------------------------------------------------------------------------------------------------
CLASS A
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $8.48 $9.12 $8.86 $8.67 $8.50
---------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
---------------------------------------------------------------------------------------------------------------
Net investment income .27 .54 .57 .63<F2> .58<F2>
---------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain on investments .13 (.62) .27 .19 .17
---------------------------------------------------------------------------------------------------------------
TOTAL FROM INVESTMENT OPERATIONS .40 (.08) .84 .82 .75
---------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
---------------------------------------------------------------------------------------------------------------
From net investment income (.26) (.54) (.57) (.63) (.58)
---------------------------------------------------------------------------------------------------------------
In excess of net investment income -- -- (.01) -- --
---------------------------------------------------------------------------------------------------------------
Net realized gain on investments -- (.02) -- -- --
---------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS (.26) (.56) (.58) (.63) (.58)
---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $8.62 $8.48 $9.12 $8.86 $8.67
---------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN AT
NET ASSET VALUE (%) <F3> 4.86<F4> (.89) 9.80 9.89 9.16<F4>
---------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(in thousands) $170,599 $175,741 $170,533 $108,609 $30,864
---------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%) 0.46<F4> .98 1.02 .91<F2> .64<F2><F4>
---------------------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (%) 3.19<F4> 6.22 6.32 7.04<F2> 6.73<F2><F4>
---------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 49.14<F4> 13.85 17.68 11.56 5.74<F4>
---------------------------------------------------------------------------------------------------------------
<FN>
<F1> Unaudited
<F2> Reflects an expense limitation. As a result, expenses of the fund for the
year ended September 30, 1992 and the period ended September 30, 1991
reflect reductions of approximately $0.02 and $0.07 per share,
respectively.
<F3> Total investment return assumes dividend reinvestment and does not reflect
the effect of sales charges.
<F4> Not annualized.
</FN>
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
March 31, 1995 (Unaudited)
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 and New York State
and City personal income taxes which Putnam Management believes does not involve
undue risk to income or principal by investing primarily in a portfolio of
investment grade New York tax-exempt securities.
The fund offers class A, class B and class M shares. The fund commenced its
offering of class M shares on February 10, 1995. 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 higher ongoing distribution fee than class A shares,
may be subject to a contingent deferred sales charge if those shares are and
redeemed within six years of purchase. Class M are sold with a maximum front-end
sales charge of 3.25% and pay an ongoing distribution fee that is lower than
class B shares and higher than class A shares. Expenses of the fund are borne
pro-rata by the holders of all class 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 or 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 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 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 fund manager following procedures approved 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 gain distributions, if any, are recorded on
the ex-dividend date and paid annually.
The amount and character of income and gains to be distributed are determined in
accordance with income tax regulations which may differ from generally accepted
accounting principles.
E AMORTIZATION OF BOND PREMIUM AND ACCRETION OF BOND DISCOUNT Any 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, original
issue discount bonds and stepped coupon bonds is accreted according to the
effective yield method.
F UNAMORTIZED ORGANIZATION EXPENSES 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
shares aggregated to be $30,827. These expenses are being amortized over a
five-year period based on current and projected net asset levels.
<PAGE>
NOTE 2
MANAGEMENT FEE, ADMINISTRATIVE SERVICES, AND OTHER TRANSACTIONS
Compensation of Putnam Investment Management, Inc. (Putnam Management), the
fund's Manager, a wholly-owned subsidiary of Putnam Investments, Inc., for
management and investment advisory services is paid quarterly based on the
average net assets of the fund for the quarter. Such fees are based on the
following annual rates: 0.65% of the first $500 million of average net assets,
0.55% of the next $500 million, 0.50% of the next $500 million and 0.45% 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.
Trustees of the fund receive an annual Trustee's fee of $780, 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 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. Investor
servicing and custodian fees reported in the Statement of operations for the six
months ended March 31, 1995 have been reduced by credits allowed by PFTC.
The fund has adopted distribution plans (the "Plans") with respect to its class
A shares, class B shares and class M shares pursuant to Rule 12B-1 under the
Investment Company Act of 1940. The purpose of the Plans is to compensate Putnam
Mutual Funds Corp., a wholly-owned subsidiary of Putnam Investments, Inc., for
services provided and expenses incurred by it in distributing shares of the
fund. The Trustees have approved payment by the fund at an annual rate of .20%,
.85% and .50% of the average net assets attributable to class A, class B and
class M shares, respectively.
For the six months ended March 31, 1995, Putnam Mutual Funds Corp., acting as
underwriter received net commissions of $17,608 and $82 from the sale of class A
and class M shares respectively and $29,646 in contingent deferred sales charges
from redemptions of class B shares. A deferred sales charge of up to 1% 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 March 31, 1995,
Putnam Mutual Funds Corp., acting as underwriter received $31,327 on class A
redemptions.
NOTE 3
PURCHASES AND SALES OF SECURITIES
During the six months ended March 31, 1995, purchases and sales of investment
securities other than short-term municipal obligations aggregated $133,885,132
and $133,265,059, respectively. In determining the net gain or loss on
securities sold, the cost of securities has been determined on the identified
cost basis.
<PAGE>
NOTE 4
CAPITAL SHARES
At March 31, 1995, there was an unlimited number of shares of beneficial
interest authorized divided into class A, class B and class M shares.
Transactions in capital shares were as follows:
SIX MONTHS ENDED MARCH 31 YEAR ENDED SEPTEMBER 30
1995 1994
------------------------------------------------------------------------------
CLASS A SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------
Shares sold 2,173,425 $18,128,742 4,955,088 $43,660,936
------------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 301,127 2,517,720 620,886 5,459,381
------------------------------------------------------------------------------
2,474,552 20,646,462 5,575,974 49,120,317
------------------------------------------------------------------------------
Shares repurchased (3,408,220) (28,397,351) (3,566,478) (31,180,191)
NET INCREASE (DECREASE) (933,668) $(7,750,889) 2,009,496 $17,940,126
------------------------------------------------------------------------------
FOR THE PERIOD
FEBRUARY 1, 1994
(COMMENCEMENT OF
OPERATIONS)
SIX MONTHS ENDED MARCH 31 TO SEPTEMBER 30
1995 1994
------------------------------------------------------------------------------
CLASS B SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------
Shares sold 933,133 $7,736,846 1,036,184 $8,959,767
------------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 20,456 171,292 7,309 62,740
------------------------------------------------------------------------------
953,589 7,908,138 1,043,493 9,022,507
------------------------------------------------------------------------------
Shares repurchased (206,228) (1,644,263) (26,811) (238,280)
------------------------------------------------------------------------------
NET INCREASE 747,361 $6,263,875 1,016,682 $8,784,227
------------------------------------------------------------------------------
FOR THE PERIOD
FEBRUARY 10, 1995
(COMMENCEMENT OF
OPERATIONS)
TO MARCH 31
1995
------------------------------------------------------------------------------
CLASS M SHARES AMOUNT
------------------------------------------------------------------------------
Shares sold 4,739 $40,728
------------------------------------------------------------------------------
Shares issued in connection with reinvestment
of distributions 5 46
------------------------------------------------------------------------------
NET INCREASE 4,744 $40,774
------------------------------------------------------------------------------
<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
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
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
Gary N. Coburn
Vice President
James E. Erickson
Vice President
Michael F. Bouscaren
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
This report is for the information of shareholders of Putnam New York Tax Exempt
Opportunities Fund. It may also be used as sales literature when preceded or
accompanied by the current prospectus, which gives details of sales charges,
investment objectives, and operating policies of the fund, and the most recent
copy of Putnam's Quarterly Performance Summary. For more information, or to
request a prospectus, call toll free: 1-800-225-1581.
SHARES OF MUTUAL FUNDS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY, ANY FINANCIAL INSTITUTION, ARE NOT INSURED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION (FDIC), THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY,
AND INVOLVE RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
<PAGE>
[LOGO: PUTNAM INVESTMENTS]
THE PUTNAM FUNDS
One Post Office Square
Boston, Massachusetts 02109
------------
Bulk Rate
U.S. Postage
PAID
Putnam
Investments
------------
854/228/759-17773
