Putnam
New York
Tax Exempt
Opportunities
Fund
SEMIANNUAL REPORT
March 31, 1997
[LOGO: BOSTON * LONDON * TOKYO]
Fund highlights
* "Based on tax-equivalent yields alone, muni funds easily outshine
most taxable-bond funds."
-- Morningstar Mutual Funds, March 1997
* According to Lipper Analytical Services, Putnam New York Tax Exempt
Opportunities Fund's class A share total return ranked 9 out of 94 New
York municipal bond funds for the one-year period ended March 31, 1997,
placing the fund in the top 10% in this category.*
CONTENTS
4 Report from Putnam Management
9 Fund performance summary
13 Portfolio holdings
16 Financial statements
* Lipper Analytical Services, an independent research organization, ranks
funds according to total return performance. Their rankings vary over time
and do not reflect the effects of sales charges. For periods ended
3/31/97, class A shares ranked 27 out of 43 funds for 5-year performance;
class B shares ranked 40 out of 94 and 33 out of 61 funds for 1- and
3-year performance, respectively; class M shares ranked 20 out of 94 funds
for 1-year performance. Class B and class M shares were not ranked over
longer periods. Past performance is not indicative of future results.
From the Chairman
[GRAPHIC OMITTED: PHOTO OF GEORGE PUTNAM]
(copyright) Karsh, Ottawa
Dear Shareholder:
The Federal Reserve Board's increase in the federal funds rate just before the
midpoint of Putnam New York Tax Exempt Opportunities Fund's fiscal year was
hardly a surprise to your fund's management team. Fund Manager Howard Manning
had already positioned the portfolio defensively in response to the unsettled
market environment that had prevailed during much of the period.
Besides taking the defensive actions that he explains in the following
management report, Howard has been seeking investments in industry sectors
likely to benefit from a strong economy. As a result, he believes the
portfolio is positioned not only to weather continued market volatility but
also to benefit from what, in his view, will be sustained strong demand for
municipal bonds.
In his report, Howard also reviews your fund's performance during the first
half of fiscal 1997 and presents his views on prospects for the remainder of
the year.
Respectfully yours,
/S/GEORGE PUTNAM
George Putnam
Chairman of the Trustees
May 21, 1997
Report from the Fund Manager
Howard K. Manning
Ever-changing market dynamics, combined with increasingly complex investment
choices, make the correct evaluation of numerous risk/reward relationships the
most important part of the portfolio management process. Since our assessment
of potential rewards and risks guides all investment decisions, it is also the
place where professional management adds the most value.
Over the first half of Putnam New York Tax Exempt Opportunities Fund's 1997
fiscal year, the six months ended March 31, 1997, our evaluations helped
identify attractive positioning opportunities with regard to credit quality,
coupon structure, and the yield curve. Although the period was not a favorable
one for fixed-income funds in general, we believe the decisions we made over
the past few months should enable the fund to continue its record of solid
returns. For complete performance information, please turn to page 9.
* SEEKING RELATIVE VALUE IN A RISING RATE ENVIRONMENT
The environment for New York municipal bonds largely reflected that of the
national market over the period. As the national economy maintained its
strength, investors' concerns about higher inflation and the possibility of a
tighter monetary policy pushed interest rates higher. Echoing these concerns,
the Federal Reserve Board did, in fact, raise the federal funds rate by a
quarter of a percentage point in March 1997. (This benchmark for short-term
interest rates is the rate banks use for overnight loans.)
The inverse relationship between interest rates and bond prices -- as interest
rates rise, bond prices fall and vice versa -- inevitably brought bond prices
down during the period. Our management goals became twofold: to preserve net
asset value and to take advantage of higher interest rates to boost the fund's
yield. In this environment, we relied on careful credit selection to secure
yield opportunities, building around a core of investments designed to provide
the portfolio with a neutral interest-rate stance. However, our determination
of relative value was the key to your fund's performance.
For example, we structured the portfolio with a core of bonds with coupons in
the 6% to 6 1/2% range. These replaced lower-coupon bonds with longer
maturities and greater interest-rate sensitivity, which would be expected to
have more appreciation potential in a neutral or falling rate environment.
Over the past six months, we have particularly emphasized bonds with stated
maturities of 15 to 20 years. These bonds offer attractive yield levels now,
combined with the potential to increase in value as they grow closer to
maturity and rotate toward the shorter end of the yield curve -- a phenomenon
known as "curve roll" or "coupon roll." Capitalizing on this appreciation
potential -- which operates independently of interest-rate changes -- can
enable us to build the overall value of the portfolio over time.
To gain a historical perspective on relative value, we also monitor events and
the changing yield relationships between different municipal bond and quality
sectors. This enables us to determine which bonds and sectors are attractively
priced and which appear overvalued.
[GRAPHIC HORIZONTAL BAR CHART OMITTED: TOP INDUSTRY SECTORS]
TOP INDUSTRY SECTORS*
Education 18.7%
Utilities 16.4%
Transportation 16.0%
Health care 13.4%
Water and sewerage 12.8%
Footnote reads:
* Based on net assets as of 3/31/97. Holdings will vary over time.
* SEASONAL CYCLES PROVIDE ADDITIONAL OPPORTUNITIES
The arduous process of negotiating New York State and City budgets often
results in seasonal yield swings for New York municipal bonds. Over the past
several years, bond yields have become attractive as investors anticipate the
difficulties of pending legislative negotiations. Yields have continued to
increase -- and prices to decline accordingly -- as budget impasses give way
to fiscal resolutions and a mounting new supply of bonds. Once the new supply
subsides, prices generally improve, pushing yields lower on a comparative
basis.
Accordingly, we reduced the fund's holdings in New York state, New York City,
and state-appropriated bonds over this period as their yields became less
attractive on a relative basis. We believe this was seasonal in nature, based
on the budget cycle of each of these entities, and we expect to rebuild the
fund's positions as we reach the point in the budget cycle at which yields
once again become more attractive.
* CREDIT AND SECTOR RESEARCH HELP ENHANCE STABILITY
Over the semiannual period, we upgraded the portfolio's quality by investing
in Aaa-insured and Aa-rated bonds. Higher-quality bonds offered better
relative value than those that were lower rated over the last six months,
since they provided little in the way of a yield differential to compensate
investors for their higher credit risk. We also have been emphasizing
essential-service revenue bonds. These bonds are self-funding; the income paid
to investors comes from the fees paid by users of these services. Therefore,
state and city budget issues have little effect on the financial well-being of
these issuers and the prices of their securities tend to remain relatively
stable.
Astute credit research and the ability to seize opportunity dovetailed as we
secured positions in two industrial development bonds that best exemplify our
yield focus, those of American Airlines and Visy Paper, Inc. As of the end of
the reporting period, these holdings represented approximately 7% of your
fund's market value.
[GRAPHIC PIE CHART OMITTED: CREDIT QUALITY OVERVIEW]
CREDIT QUALITY OVERVIEW*
A 12.8%
Aa 23.8%
Aaa 26.8%
B and below 3.1%
Ba 8.9%
Baa 24.6%
Footnote reads:
* As a percentage of market value as of 3/31/97. A bond rated Baa or higher is
considered investment grade. All ratings reflect Moody's descriptions unless
noted otherwise; percentages may include unrated bonds considered by Putnam
Management to be of comparable quality. Ratings will vary over time.
In our opinion, American Airlines is one of the top companies in an industry
that we believe exhibits very positive attributes. These bonds offered a high
yield at purchase; we believe that going forward they will provide the
opportunity for both attractive income and price appreciation.
Visy Paper, Inc. manufactures lightweight, high-performance linerboard. Its
BB+ rated bonds carry one of the highest yields available in the New York
municipal bond market. We consider the company's credit quality more than
sufficient to justify the risk of investing in these bonds, especially since
high-yield bonds that are attractive from a credit-quality perspective have
become increasingly scarce. In both cases, we monitored the bonds' yield
levels and were ready to take advantage of purchase opportunities as sellers
appeared. While these holdings, along with others discussed in this report,
were viewed favorably at the end of the period, all are subject to review and
adjustment in accordance with the fund's investment strategy, and may vary in
the future.
* CURRENT STRATEGY COMBINES DEFENSIVE POSITIONING WITH OPPORTUNISTIC OUTLOOK
Looking forward, we will continue to seek strong relative value while working
to keep the portfolio as cushioned as possible from the effects of changing
interest rates. We will also continue to monitor attractive issues and watch
for potential purchase opportunities.
Two situations we are watching closely are New York City Health and Hospital
Corporation and the merger of Long Island Lighting Co. (LILCO) with Brooklyn
Union Gas. New York City Health and Hospital Corporation, an arm of the city
government, has been authorized to issue $3 billion in debt to repair and
maintain the infrastructure of New York City's health-care system. Given the
scope of the project and the magnitude of the financing, we believe that bonds
will be priced attractively for investors.
The LILCO-Brooklyn Union Gas merger also is expected to generate enormous
supply over the next five years. Long Island Power Authority is anticipated to
issue up to $7 billion worth of bonds on behalf of this new entity. We are
following this merger carefully and anticipate participating when we consider
that the bonds' potential for yield and credit quality improvement create
compelling value.
The views expressed here are exclusively those of Putnam Management. They are
not meant as investment advice. Although the described holdings were viewed
favorably as of 3/31/97, there is no guarantee the fund will continue to hold
these securities in the future.
Performance summary
This section provides information about your fund's performance, which
should always be considered in light of its investment strategy. Putnam
New York Tax Exempt Opportunities Fund is designed for investors seeking
high current income free from federal, New York State, and New York City
income taxes, consistent with capital preservation.
TOTAL RETURN FOR PERIODS ENDED 3/31/97
Class A Class B Class M
(inception date) (11/7/90) (2/1/94) (2/10/95)
NAV POP NAV CDSC NAV POP
- --------------------------------------------------------------------------
6 months 1.84% -2.97% 1.51% -3.45% 1.57% -1.76%
- --------------------------------------------------------------------------
1 year 5.83 0.77 5.14 0.14 5.39 2.01
- --------------------------------------------------------------------------
5 years 37.55 31.05 -- -- -- --
Annual average 6.58 5.56 -- -- -- --
- --------------------------------------------------------------------------
Life of class A 56.10 48.75 -- -- -- --
Annual average 7.20 6.40 -- -- -- --
- --------------------------------------------------------------------------
Life of class B -- -- 13.94 11.03 -- --
Annual average -- -- 4.22 3.37 -- --
- --------------------------------------------------------------------------
Life of class M -- -- -- -- 15.48 11.68
Annual average -- -- -- -- 6.96 5.30
- --------------------------------------------------------------------------
COMPARATIVE INDEX RETURNS FOR PERIODS ENDED 3/31/97
Lehman Bros. Consumer
Municipal Bond Price
Index Index
- ------------------------------------------------------------------------------
6 months 2.31% 1.39%
- ------------------------------------------------------------------------------
1 year 5.47 2.76
- ------------------------------------------------------------------------------
5 years 41.42 14.86
Annual average 7.18 2.81
- ------------------------------------------------------------------------------
Life of class A 62.96 19.85
Annual average 7.91 2.87
- ------------------------------------------------------------------------------
Life of class B 14.78 9.44
Annual average 4.45 2.90
- ------------------------------------------------------------------------------
Life of class M 18.99 6.45
Annual average 8.37 2.97
- ------------------------------------------------------------------------------
Performance data represent past results, do not reflect future performance,
and will differ for each share class. They do not take into account any
adjustment for taxes payable on reinvested distributions. Investment
returns and principal value will fluctuate so that an investor's shares,
when sold, may be worth more or less than their original cost. POP
assumes 4.75% maximum sales charge for class A shares and 3.25% for class M
shares. CDSC for class B shares assumes the applicable sales charge, with
the maximum being 5%. Performance data prior to 5/11/92 do not reflect
operation under the fund's current investment objective and policies.
PRICE AND DISTRIBUTION INFORMATION
6 months ended 3/31/97
Class A Class B Class M
- ------------------------------------------------------------------------------
Distributions (number) 6 6 6
- ------------------------------------------------------------------------------
Income1 $0.243187 $0.213732 $0.229166
- ------------------------------------------------------------------------------
Capital gains -- -- --
- ------------------------------------------------------------------------------
Total $0.243187 $0.213732 $0.229166
- ------------------------------------------------------------------------------
Share value: NAV POP NAV NAV POP
- ------------------------------------------------------------------------------
9/30/96 $8.87 $9.31 $8.86 $8.86 $9.16
- ------------------------------------------------------------------------------
3/31/97 8.79 9.23 8.78 8.77 9.06
- ------------------------------------------------------------------------------
Current return (end of period)
- ------------------------------------------------------------------------------
Current dividend rate2 5.66% 5.39% 5.00% 5.35% 5.18%
- ------------------------------------------------------------------------------
Taxable equivalent3 10.50 10.00 9.27 9.92 9.61
- ------------------------------------------------------------------------------
Current 30-day SEC yield4 5.25 5.00 4.59 4.88 4.72
- ------------------------------------------------------------------------------
Taxable equivalent3 9.74 9.27 8.51 9.05 8.75
- ------------------------------------------------------------------------------
1Capital gains, if any, 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.
2Income portion of most recent distribution, annualized and divided by
NAV or POP at end of period.
3Assumes maximum 46.08% combined federal, state and city tax rate.
Results for investors subject to lower tax rates would not be as
advantageous.
4Based only on investment income, calculated using SEC guidelines.
TERMS AND DEFINITIONS
Total return shows how the value of the fund's shares changed over time,
assuming you held the shares through the entire period and reinvested all
distributions in the fund.
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 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
Lehman Brothers Municipal Bond Index is an unmanaged list of long-term
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. It is not possible to
invest directly in an index.
Consumer Price Index (CPI ) is a commonly used measure of inflation; it
does not represent an investment return.
* Securities indexes assume reinvestment of all distributions and interest
payments and do not take in account brokerage fees or taxes. Securities in
the fund do not match those in the indexes and performance of the fund
will differ. It is not possible to invest directly in an index.
WELCOME TO
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New features will be added to the site on an ongoing basis. So, visit us
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Portfolio of investments owned
March 31, 1997 (Unaudited)
Key to Abbreviations
AMBAC -- AMBAC Indemnity Corporation
FGIC -- Financial Guaranty Insurance Company
FHA Insd. -- Federal Housing Administration Insured
G.O. Bonds -- General Obligation Bonds
IFB -- Inverse Floating Rate Bonds
MBIA -- Municipal Bond Investors Assurance Corporation
VRDN -- Variable Rate Demand Notes
<TABLE>
<CAPTION>
MUNICIPAL BONDS AND NOTES (101.3%) *
RATINGS** VALUE
<S> <C> <C> <C>
New York (98.0%)
- ------------------------------------------------------------------------------------------------------------
2,635,000 Ithaca, Hsg. Corp. Mtge. Rev. Bonds (Eddygate
Park Apts.), 9s, 6/1/06 BBB/P $ 2,752,178
2,650,000 Jefferson Cnty., Indl. Dev. Agcy. Solid Waste Disp.
Rev. Bonds (Champion Intl. Corp.), 7.2s, 12/1/20 Baa 2,858,688
4,500,000 Metropolitan Trans. Auth. Commuter Fac. Rev.
Bonds, Ser. A, FGIC, 6.1s, 7/1/26 Aaa 4,590,000
2,500,000 Metropolitan Trans. Auth. Dedicated Tax Fund
Rev. Bonds, Ser. A, MBIA, 6 1/4s, 4/1/11 Aaa 2,706,250
NY City, G.O. Bonds
1,310,000 Ser. D, 8 1/4s, 8/1/11 Baa 1,478,663
370,000 Ser. D, Prerefunded, 8 1/4s, 8/1/11 Aaa 424,113
300,000 Ser. B, 8 1/4s, 6/1/05 Baa 349,500
5,000,000 Ser. G, 6 3/4s, 2/1/09 Baa 5,337,500
380,000 Ser. F, 3s, 11/15/00 Baa 356,250
1,000,000 NY City, G.O. AMBAC, 8.33s, 9/1/11 Aaa 1,045,000
NY City, Indl. Dev. Rev. Bonds (Visy Paper Inc.)
4,000,000 7.8s, 1/1/16 BB/P 4,250,000
5,000,000 7.95s, 1/1/28 BB/P 5,312,500
NY City, Indl. Dev. Agcy. Civic Fac. Rev. Bonds
8,230,000 (Parking Corp.), 8 1/2s, 12/30/22 BB/P 8,991,275
1,750,000 (The Lighthouse Inc.), 6 1/2s, 7/1/22 Aa 1,811,250
NY City, Indl. Dev. Agcy. Special Fac. Rev. Bonds
4,000,000 (American Airlines Inc.) 6.9s, 8/1/24 Baa 4,285,000
3,965,000 (Terminal One Group Assn.), 6 1/8s, 1/1/24 A 3,865,875
3,500,000 NY City, Muni. Assistance Corp. Rev. Bonds,
Ser. I, 6 1/4s, 7/1/05 Aa 3,762,500
NY City, Muni. Wtr. & Swr. Fin. Auth.
5,000,000 MBIA, 6.82s, 6/15/13 Aaa 4,606,250
2,000,000 Ser. A, AMBAC, 6s, 6/15/09 Aaa 2,140,000
2,000,000 Ser. B, MBIA, 5 3/4s, 6/15/26 Aaa 1,942,500
5,000,000 NY State G.O. Bonds, Ser. A, 5.3s, 7/15/16 A 4,675,000
NY State Dorm. Auth. Rev. Bonds
170,000 (City U.), Ser. D, 8 3/4s, 7/1/03 Baa 199,538
5,250,000 (City U.), Ser. D, 8.2s, 7/1/12 Baa 5,565,000
7,225,000 (City U.), Ser. C, 8 1/8s, 7/1/08 Baa 7,658,500
2,750,000 (Long Island Med. Ctr.), Ser. A, FHA Insd.,
7 3/4s, 8/15/27 AAA 2,872,760
835,000 (NY Dept of Ed.), 7 3/4s, 7/1/21 Baa 942,506
5,000,000 (State U. Edl. Fac.), Ser. A, 7 1/2s, 5/15/13 Baa 5,850,000
1,605,000 (Cornell U.), Ser. A, 7 3/8s, 7/1/30 Aa 1,743,431
6,000,000 (Cornell U.), Ser. A, 7 3/8s, 7/1/20 Aa 6,517,500
500,000 (Wildwood School), 7.3s, 7/1/15 A 556,250
2,050,000 (Our Lady Of Mercy), FHA Insd., 6.3s, 8/1/32 AA 2,091,000
2,500,000 (Mental Hlth.), Ser. E, AMBAC, 6s, 8/15/07 Aaa 2,631,250
4,550,000 (City U. Syst.), MBIA, 5 1/2s, 7/1/24 Aaa 4,299,750
725,000 (State U. Edl. Fac.), Ser. B, zero%, 5/15/09 Baa 361,594
2,000,000 NY State Energy Res. & Dev. Auth. Gas Fac. IFB
(Brooklyn Union Gas Co.), Ser. B,
10.071s, 7/1/26 A 2,345,000
3,500,000 NY State Energy Res. & Dev. IFB (Brooklyn
Union Gas Co.), 8.852s, 4/1/20 A 3,836,875
NY State Energy Res. & Dev. Auth. Poll.
Control Rev. Bonds
1,000,000 (Hudson Gas), Ser A., FGIC, 7 3/8s, 10/1/14 Aaa 1,086,250
1,700,000 (Hudson Gas), Ser B., FGIC, 7 3/8s, 10/1/14 Aaa 1,846,625
1,750,000 (Niagara Mohawk Pwr. Corp.), Ser. A, FGIC,
7.2s, 7/1/29 Aaa 1,962,188
2,100,000 NY State Energy Res. & Dev. Auth. Poll. Control
VRDN (Niagara Mohawk Pwr.), Ser. A,
3.8s, 7/1/15 Aa 2,100,000
NY State Energy Res. & Dev. Auth. Rev. Bonds
1,250,000 (Cons. Edison Co. of NY), Ser. C, 7
1/4s, 11/1/24 A 1,309,375
10,000,000 AMBAC, 6.1s, 5/15/20 Aaa 10,187,500
NY State Env. Fac. Corp. Poll. Control Rev.
Bonds (State Wtr. Revolving Fund)
16,200,000 Ser. A, 7 1/2s, 6/15/12 Aa 17,678,250
1,000,000 Ser. B, 7 1/2s, 3/15/11 Aa 1,071,250
7,185,000 7s, 6/15/12 Aa 7,831,650
500,000 NY State Hsg. Fin. Agcy. Svcs. Contract Oblig.
Rev. Bonds, Ser. A, 7 1/4s, 9/15/12 Baa 544,375
2,900,000 NY State Local Govt. Assistance Corp. Rev.
Bonds, Ser. C, 5 1/2s, 4/1/17 A 2,791,250
NY State Med. Care Fac. Fin. Agcy. Rev. Bonds
610,000 (Hosp. & Nursing Home Insd. Mtge.), Ser. B,
FHA Insd., 8 7/8s, 8/15/27 AA 639,292
215,000 (Mental Hlth. Svcs. Fac.), Ser. B, 7 7/8s, 8/15/08 Baa 237,306
180,000 (Mental Hlth. Svcs. Fac.), Ser. B, Prerefunded,
7 7/8s, 8/15/08 Aaa 201,150
70,000 (Mental Hlth. Svcs. Fac.), Ser. A, 7.8s, 2/15/19 Baa 74,813
2,000,000 MBIA, 7.6s, 2/15/29 Aaa 2,132,500
230,000 (Mental Hlth. Svcs. Fac), Ser. A, 7 1/2s, 2/15/21 Baa 251,850
205,000 (Mental Hlth. Svcs. Fac.), Ser. D, 7.4s, 2/15/18 Baa 224,988
510,000 (Mental Hlth. Svcs. Fac.), Ser. D, Prerefunded,
7.4s, 2/15/18 BBB 573,113
5,750,000 (North Shore U. Hosp.), MBIA, 7.2s, 11/1/20 Aaa 6,253,125
200,000 (Bronx, Lebanon & the Jamaica Hosps.),
Ser. A, 7.1s, 2/15/27 Baa 203,750
700,000 (Hosp. & Nursing Home Insd. Mtge.),
Ser. D, FHA Insd., 6.6s, 2/15/31 AAA 725,375
4,300,000 NY State Thruway Auth. Rev. Bonds,
Ser. B, FGIC, 6s, 4/1/14 Aaa 4,391,375
NY State Urban Dev. Corp. Rev. Bonds
1,685,000 (Clarkson Ctr.), 5 1/2s, 1/1/20 Baa 1,573,369
3,345,000 (Clarkson Ctr.), 5 1/2s, 1/1/15 Baa 3,165,202
2,000,000 (Syracuse U.), 5 1/2s, 1/1/15 Baa 1,892,500
5,000,000 (Ctr. for Indl. Innovation), 5 1/2s, 1/1/13 Baa 4,775,000
5,755,000 Port Auth. NY & NJ Special Oblig. Rev. Bonds
(Continental/Eastern Laguardia),
9 1/8s, 12/1/15 B 6,503,150
Port Auth. NY & NJ Cons. Rev. Bonds
175,000 Ser. 78, 6 1/2s, 10/15/08 AA 186,813
2,000,000 Ser. 83, 6 3/8s, 10/15/17 AA 2,080,000
1,240,000 Triborough Bridge & Tunnel Auth. Rev. Bonds,
Ser. B, 6s, 1/1/07 Aa 1,331,450
1,445,000 Valley Hlth. Dev. Corp. Mtge. Rev. Bonds
(Valley Hlth. Project), FHA Insd., 11.3s, 2/1/23 A 1,708,713
--------------
202,544,793
Puerto Rico (3.3%)
- ------------------------------------------------------------------------------------------------------------
4,700,000 Cmnwlth. of PR, Hwy. & Trans. Auth. Hwy. IFB,
Ser. W, 6.958s, 7/1/08 A 4,670,625
1,000,000 Cmnwlth. of PR, Hwy. & Trans. Auth. Rev.
Bonds, Ser. Y, 6 1/4s, 7/1/13 A 1,063,750
1,000,000 PR Indl. & Environmental Poll. Control Fac. Fin.
Auth. Rev. Bonds, 7.6s, 5/1/14 A1 1,081,250
--------------
6,815,625
- ------------------------------------------------------------------------------------------------------------
Total Investments (cost $209,985,175) *** $ 209,360,418
- ------------------------------------------------------------------------------------------------------------
* Percentages indicated are based on net assets of $206,655,255.
** The Moody's or Standard & Poor's ratings indicated are believed to
be the most recent ratings available at March 31, 1997 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, 1997. Securities rated by Putnam are indicated
by "/P" and are not publicly rated.
*** The aggregate identified cost on a tax basis is $209,993,873,
resulting in gross unrealized appreciation and depreciation of
$2,959,108 and $3,592,563, respectively, or net unrealized depreciation
of $633,455.
The rates shown on IFB, which are securities paying interest rates that
vary inversely to changes in the market interest rates, and VRDN's are
the current interest rates at March 31, 1997.
The fund had the following industry group concentrations greater than
10% at March 31, 1997 (as a percentage of net assets):
Education 18.7%
Utilities 16.4
Transportation 16.0
Health care 13.4
Water & Sewer 12.8
The fund had the following insurance concentration greater than 10% at
March 31, 1997 (as a percentage of net assets):
MBIA 10.6%
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of assets and liabilities
March 31,1997 (Unaudited)
<S> <C>
Assets
- ---------------------------------------------------------------------------------------------------
Investments in securities, at value
(identified cost $209,985,175) (Note 1) $ 209,360,418
- ---------------------------------------------------------------------------------------------------
Cash 1,172,042
- ---------------------------------------------------------------------------------------------------
Interest and other receivables 3,518,352
- ---------------------------------------------------------------------------------------------------
Receivable for shares of the fund sold 242,093
- ---------------------------------------------------------------------------------------------------
Receivable for securities sold 2,044,789
- ---------------------------------------------------------------------------------------------------
Total assets 216,337,694
Liabilities
- ---------------------------------------------------------------------------------------------------
Distributions payable to shareholders 344,333
- ---------------------------------------------------------------------------------------------------
Payable for securities purchased 8,559,927
- ---------------------------------------------------------------------------------------------------
Payable for shares of the fund repurchased 245,197
- ---------------------------------------------------------------------------------------------------
Payable for compensation of Manager (Note 2) 310,930
- ---------------------------------------------------------------------------------------------------
Payable for investor servicing and custodian fees (Note 2) 24,102
- ---------------------------------------------------------------------------------------------------
Payable for compensation of Trustees (Note 2) 8,014
- ---------------------------------------------------------------------------------------------------
Payable for administrative services (Note 2) 1,810
- ---------------------------------------------------------------------------------------------------
Payable for distribution fees (Note 2) 115,815
- ---------------------------------------------------------------------------------------------------
Other accrued expenses 72,311
- ---------------------------------------------------------------------------------------------------
Total liabilities 9,682,439
- ---------------------------------------------------------------------------------------------------
Net assets 206,655,255
Represented by
- ---------------------------------------------------------------------------------------------------
Paid-in capital (Notes 1 and 4) $ 206,997,192
- ---------------------------------------------------------------------------------------------------
Undistributed net investment income (Note 1) 73,116
- ---------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments
(Note 1) 209,704
- ---------------------------------------------------------------------------------------------------
Net unrealized depreciation of investments (624,757)
- ---------------------------------------------------------------------------------------------------
Total - Representing net assets applicable to
capital shares outstanding $ 206,655,255
Computation of net asset value and offering price
- ---------------------------------------------------------------------------------------------------
Net asset value and redemption price per class A share
($158,335,915 divided by 18,022,235 shares) $8.79
- ---------------------------------------------------------------------------------------------------
Offering price per class A share (100/95.25 of $8.79)* $9.23
- ---------------------------------------------------------------------------------------------------
Net asset value and offering price per class B share
($46,568,300 divided by 5,305,283 shares)*** $8.78
- ---------------------------------------------------------------------------------------------------
Net asset value and redemption price per class M share
($1,751,040 divided by 199,652 shares) $8.77
- ---------------------------------------------------------------------------------------------------
Offering price per class M share (100/96.75 of $8.77)** $9.06
- ---------------------------------------------------------------------------------------------------
* On single retail redemption less than $25,000. On sale of $25,000 or more and on group sales the
offering price is reduced.
** On single retail redemption less than $50,000. On sale 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.
</TABLE>
<TABLE>
<CAPTION>
Statement of operations
Six months ended March 31,1997 (Unaudited)
<S> <C>
Tax exempt interest income: $ 6,656,100
- --------------------------------------------------------------------------------------------------
Expenses:
- --------------------------------------------------------------------------------------------------
Compensation of Manager (Note 2) 633,814
- --------------------------------------------------------------------------------------------------
Investor servicing and custodian fees (Note 2) 107,897
- --------------------------------------------------------------------------------------------------
Compensation of Trustees (Note 2) 14,815
- --------------------------------------------------------------------------------------------------
Administrative services (Note 2) 3,554
- --------------------------------------------------------------------------------------------------
Distribution fees -- Class A (Note 2) 164,646
- --------------------------------------------------------------------------------------------------
Distribution fees -- Class B (Note 2) 190,380
- --------------------------------------------------------------------------------------------------
Distribution fees -- Class M (Note 2) 3,914
- --------------------------------------------------------------------------------------------------
Reports to shareholders 10,688
- --------------------------------------------------------------------------------------------------
Registration fees 4,071
- --------------------------------------------------------------------------------------------------
Auditing 17,487
- --------------------------------------------------------------------------------------------------
Legal 7,605
- --------------------------------------------------------------------------------------------------
Postage 12,258
- --------------------------------------------------------------------------------------------------
Other 6,206
- --------------------------------------------------------------------------------------------------
Total expenses 1,177,335
- --------------------------------------------------------------------------------------------------
Expense reduction (Note 2) (65,260)
- --------------------------------------------------------------------------------------------------
Net expenses 1,112,075
- --------------------------------------------------------------------------------------------------
Net investment income 5,544,025
- --------------------------------------------------------------------------------------------------
Net realized gain on investments (Notes 1 and 3) 718,251
- --------------------------------------------------------------------------------------------------
Net realized gain on futures contracts (Notes 1 and 3) 203,200
- --------------------------------------------------------------------------------------------------
Net unrealized depreciation of investments during the period (2,790,951)
- --------------------------------------------------------------------------------------------------
Net loss on investments (1,869,500)
- --------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 3,674,525
- --------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of changes in net assets
Six months ended Year ended
March 31 September 30
1997* 1996
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (decrease) in net assets
- ----------------------------------------------------------------------------------------------------------------------
Operations:
- ----------------------------------------------------------------------------------------------------------------------
Net investment income $ 5,544,025 $ 11,366,117
- ----------------------------------------------------------------------------------------------------------------------
Net realized gain on investments 921,451 3,234,528
- ----------------------------------------------------------------------------------------------------------------------
Net unrealized depreciation of investments (2,790,951) (1,860,238)
- ----------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 3,674,525 12,740,407
- ----------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
- ----------------------------------------------------------------------------------------------------------------------
From net investment income
Class A (4,512,090) (9,635,133)
- ----------------------------------------------------------------------------------------------------------------------
Class B (1,079,464) (1,614,654)
- ----------------------------------------------------------------------------------------------------------------------
Class M (40,415) (51,638)
- ----------------------------------------------------------------------------------------------------------------------
Increase (decrease) from capital
share transactions (Note 4) (6,844,587) 14,250,689
- ----------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (8,802,031) 15,689,671
Net assets
- ----------------------------------------------------------------------------------------------------------------------
Beginning of period 215,457,286 199,767,615
- ----------------------------------------------------------------------------------------------------------------------
End of period (including undistributed net investment
income of $73,116 and $161,060, respectively) 206,655,255 215,457,286
- ----------------------------------------------------------------------------------------------------------------------
* Unaudited
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Financial highlights
(For a share outstanding throughout the period)
CLASS A
- ---------------------------------------------------------------------------------------------------------------------------------
Six months
ended
Per-share March 31
operating performance (Unaudited) Year ended September 30
- ---------------------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $8.87 $8.80 $8.48 $9.12 $8.86 $8.67
- ---------------------------------------------------------------------------------------------------------------------------------
Investment operations
- ---------------------------------------------------------------------------------------------------------------------------------
Net investment income .24 .49 .52 .54 .57 .63 (c)
- ---------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments (.08) .07 .32 (.62) .27 .19
- ---------------------------------------------------------------------------------------------------------------------------------
Total from
investment operations .16 .56 .84 (.08) .84 .82
- ---------------------------------------------------------------------------------------------------------------------------------
Less distributions:
- ---------------------------------------------------------------------------------------------------------------------------------
From net
investment income (.24) (.49) (.52) (.54) (.57) (.63)
- ---------------------------------------------------------------------------------------------------------------------------------
In excess of net
investment income -- -- -- -- (.01) --
- ---------------------------------------------------------------------------------------------------------------------------------
From net realized gain
on investments -- -- -- (.02) -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total distributions (.24) (.49) (.52) (.56) (.58) (.63)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $8.79 $8.87 $8.80 $8.48 $9.12 $8.86
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
- ---------------------------------------------------------------------------------------------------------------------------------
Total investment return
at net asset value (%)(a) 1.84* 6.48 10.27 (.89) 9.80 9.89
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $158,336 $172,170 $175,210 $175,741 $170,533 $108,609
- ---------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(b) .49* 1.00 1.01 .98 1.02 .91 (c)
- ---------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (%) 2.69* 5.53 6.12 6.22 6.32 7.04 (c)
- ---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 79.85* 270.34 120.38 13.85 17.68 11.56
- ---------------------------------------------------------------------------------------------------------------------------------
+ Commencement of operations.
* Not annualized.
(a) Total investment return assumes dividend reinvestment and does not reflect the effect of sales charges.
(b) The ratio of expenses to average net assets for the periods ended September 30, 1995 and
thereafter, includes amounts paid through expense offset arrangements. Prior period
ratios exclude these amounts (Note 2).
(c) Reflects an expense limitation in effect during the period. As a result of such limitation,
expenses for the year ended September 30, 1992 reflect a reduction of $0.02 per share.
</TABLE>
<TABLE>
<CAPTION>
Financial highlights
(For a share outstanding throughout the period)
CLASS B
- ------------------------------------------------------------------------------------------------------------------------------
Six months
ended For the period
Per-share March 31 Feb. 1, 1994+
operating performance (Unaudited) Year ended September 30 to Sept. 30
- ------------------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value,
beginning of period $8.86 $8.79 $8.48 $9.07
- ------------------------------------------------------------------------------------------------------------------------------
Investment operations
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income .21 .43 .47 .32
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments (.08) .07 .31 (.60)
- ------------------------------------------------------------------------------------------------------------------------------
Total from
investment operations .13 .50 .78 (.28)
- ------------------------------------------------------------------------------------------------------------------------------
Less distributions:
- ------------------------------------------------------------------------------------------------------------------------------
From net
investment income (.21) (.43) (.47) (.31)
- ------------------------------------------------------------------------------------------------------------------------------
In excess of net
investment income -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
From net realized gain
on investments -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
Total distributions (.21) (.43) (.47) (.31)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $8.78 $8.86 $8.79 $8.48
- ------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
- ------------------------------------------------------------------------------------------------------------------------------
Total investment return
at net asset value (%)(a) 1.51* 5.78 9.46 (3.06)*
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $46,568 $41,795 $24,259 $8,622
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(b) .81* 1.66 1.65 1.05*
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (%) 2.36* 4.83 5.28 3.39*
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 79.85* 270.34 120.38 13.85
- ------------------------------------------------------------------------------------------------------------------------------
+ Commencement of operations.
* Not annualized.
(a) Total investment return assumes dividend reinvestment and does not reflect the effect of sales charges.
(b) The ratio of expenses to average net assets for the periods ended September 30, 1995 and
thereafter, includes amounts paid through expense offset arrangements. Prior period
ratios exclude these amounts (Note 2).
(c) Reflects an expense limitation in effect during the period. As a result of such limitation,
expenses for the year ended September 30, 1992 reflect a reduction of $0.02 per share.
</TABLE>
<TABLE>
<CAPTION>
Financial highlights
(For a share outstanding throughout the period)
CLASS M
- -----------------------------------------------------------------------------------------------------------------------------
Six months
ended For the period
Per-share March 31 Year ended Feb. 10, 1995+
operating performance (Unaudited) Sept. 30 to Sept. 30
- ------------------------------------------------------------------------------------------------------------------------------
1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value,
beginning of period $8.86 $8.79 $8.51
- ------------------------------------------------------------------------------------------------------------------------------
Investment operations
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income .22 .47 .31
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments (.08) .06 .29
- ------------------------------------------------------------------------------------------------------------------------------
Total from
investment operations .14 .53 .60
- ------------------------------------------------------------------------------------------------------------------------------
Less distributions:
- ------------------------------------------------------------------------------------------------------------------------------
From net
investment income (.23) (.46) (.32)
- ------------------------------------------------------------------------------------------------------------------------------
In excess of net
investment income -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
From net realized gain
on investments -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
Total distributions (.23) (.46) (.32)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $8.77 $8.86 $8.79
- ------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
- ------------------------------------------------------------------------------------------------------------------------------
Total investment return
at net asset value (%)(a) 1.57* 6.15 7.11*
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $1,751 $1,492 $299
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(b) .64* 1.30 .83*
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (%) 2.53* 5.03 3.21*
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 79.85* 270.34 120.38
- ------------------------------------------------------------------------------------------------------------------------------
+ Commencement of operations.
* Not annualized.
(a) Total investment return assumes dividend reinvestment and does not reflect the effect of sales charges.
(b) The ratio of expenses to average net assets for the periods ended September 30, 1995 and
thereafter, includes amounts paid through expense offset arrangements. Prior period
ratios exclude these amounts (Note 2).
(c) Reflects an expense limitation in effect during the period. As a result of such limitation,
expenses for the year ended September 30, 1992 reflect a reduction of $0.02 per share.
</TABLE>
Notes to financial statements
March 31, 1997 (Unaudited)
Note 1
Significant accounting policies
Putnam New York Tax Exempt Opportunities Fund (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. Class A shares are sold
with a maximum front-end sales charge of 4.75%. Class B shares, which convert
to class A shares after approximately eight years, do not pay a front-end
sales charge, but pay a higher ongoing distribution fee than class A shares,
and are subject to a contingent deferred sales charge, if those shares are
redeemed within six years of purchase. Class M shares 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 each class of
shares, except that each class bears expenses unique to that class (including
the distribution fees applicable to such class). Each class 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
preparation of financial statements is in conformity with generally accepted
accounting principles and requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities. Actual
results could differ from those estimates.
A) Security valuation 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.
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 on securities held and for excise tax
on income and capital gains.
At September 30, 1996, the fund had a capital loss carryover of approximately
$424,000 available to offset future capital gains, if any, which will expire
on September 30, 2003.
D) Distributions to shareholders Income dividends are recorded daily by the
fund and are distributed monthly. Capital gain distributions if any, are
recorded on the ex-dividend date and paid at least annually. The amount and
character of income and gains to be distributed are determined in accordance
with income tax regulations which may differ from generally accepted
accounting principles. Reclassifications are made to the fund's capital
accounts to reflect income and gains available for distribution (or available
capital loss carryovers) under income tax regulations.
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. Discounts on zero coupon bonds and
original issue bonds are accreted according to the effective yield method.
F) Futures and options contracts The fund may use futures and options
contracts to hedge against changes in the value of securities the fund owns or
expects to purchase. The fund may also write options on securities it owns or
in which it invests to increase its current returns.
Note 2
Management fee, administrative services and other transactions
Compensation of Putnam Management, for management and investment advisory
services is paid quarterly based on the average net assets of the fund. Such
fee is based on the following annual rates: 0.60% of the first $500 million of
average net assets, 0.50% of the next $500 million, 0.45% of the next $500
million, 0.40% of the next $5 billion, 0.375% of the next $5 billion, 0.355%
of the next $5 billion, 0.34% of the next $5 billion and 0.33% of any excess
thereafter.
The fund reimburses Putnam Management for the compensation and related
expenses of certain officers of the fund and their staff who provide
administrative services to the fund. The aggregate amount of all such
reimbursements is determined annually by the Trustees.
Custodial functions for the fund's assets are provided by Putnam Fiduciary
Trust Company (PFTC), a wholly-owned subsidiary of Putnam Investments, Inc.
Investor servicing agent functions are provided by Putnam Investor Services, a
division of PFTC.
For the six months ended March 31, 1997, fund expenses were reduced by $65,260
under expense offset arrangements with PFTC. Investor servicing and custodian
fees reported in the Statement of operations exclude these credits. The fund
could have invested a portion of the assets utilized in connection with the
expense offset arrangements in an income producing asset if it had not entered
into such arrangements.
Trustees of the fund receive an annual Trustees fee of $570 and an additional
fee for each Trustee's meeting attended. Trustees who are not interested
persons of Putnam Management and who serve on committees of the Trustees
receive additional fees for attendance at certain committee meetings.
The fund adopted a Trustee Fee Deferral Plan (the "Plan") which allows the
Trustees to defer the receipt of all or a portion of Trustees Fees payable on
or after July 1, 1995. The deferred fees remain in the fund and are invested
in certain Putnam funds until distribution in accordance with the Plan.
The fund has adopted an unfunded noncontributory defined benefit pension plan
(the "Pension Plan") covering all Trustees of the fund who have served as
Trustee for at least five years. Benefits under the Pension Plan are equal to
50% of the Trustee's average total retainer and meeting fees for the three
years preceding retirement. Pension expense for the fund is included in
Compensation of trustees in the Statement of operations. Accrued pension
liability is included in Payable for compensation of Trustees in the Statement
of assets and liabilities.
The fund has adopted distribution plans (the "Plans") with respect to its
class A, class B 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 Plans provide for payments by the fund to Putnam
Mutual Funds Corp. at an annual rate up to 0.35%, 1.00% and 1.00% of the
average net assets attributable to class A, class B and class M shares,
respectively. The Trustees have approved payment by the fund at an annual rate
of 0.20%, 0.85% and 0.50% of the average net assets attributable to class A,
class B and class M shares, respectively.
For the six months ended March 31, 1997, Putnam Mutual Funds Corp., acting as
underwriter received net commissions of $14,938 and $581 from the sale of
class A and class M shares, respectively and $86,040 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. For the six
months ended March 31, 1997, Putnam Mutual Funds Corp., acting as underwriter
received $651 on class A redemptions.
Note 3
Purchase and sales of securities
During the six months ended March 31, 1997, purchases and sales of investment
securities other than short-term investments aggregated $241,542,117 and
$242,607,860, respectively. There were no purchases and sales of U.S.
government obligations. In determining the net gain or loss on securities
sold, the cost of securities has been determined on the identified cost basis.
Note 4
Capital shares
At March 31, 1997, there was an unlimited number of shares of beneficial
interest authorized. Transactions in capital shares were as follows:
Six months ended
March 31, 1997
- ------------------------------------------------------------
Class A Shares Amount
- ------------------------------------------------------------
Shares sold 1,584,269 $14,088,998
- ------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 247,630 2,202,589
- ------------------------------------------------------------
1,831,899 16,291,587
Shares
repurchased (3,219,665) (28,651,131)
- ------------------------------------------------------------
Net decrease (1,387,766) $(12,359,544)
- ------------------------------------------------------------
Year ended
September 30, 1996
- ------------------------------------------------------------
Class A Shares Amount
- ------------------------------------------------------------
Shares sold 5,450,704 $ 48,248,509
- ------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 536,654 4,753,649
- ------------------------------------------------------------
5,987,358 53,002,158
Shares
repurchased (6,484,353) (57,331,874)
- ------------------------------------------------------------
Net decrease (496,995) $ (4,329,716)
- ------------------------------------------------------------
Six months ended
March 31, 1997
- ------------------------------------------------------------
Class B Shares Amount
- ------------------------------------------------------------
Shares sold 1,024,938 $ 9,110,681
- ------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 69,954 621,854
- ------------------------------------------------------------
1,094,892 9,732,535
Shares
repurchased (506,084) (4,494,883)
- ------------------------------------------------------------
Net increase 588,808 $ 5,237,652
- ------------------------------------------------------------
Year ended
September 30, 1996
- ------------------------------------------------------------
Class B Shares Amount
- ------------------------------------------------------------
Shares sold 2,494,552 $ 22,114,554
- ------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 106,657 942,403
- ------------------------------------------------------------
2,601,209 23,056,957
Shares
repurchased (644,236) (5,668,228)
- ------------------------------------------------------------
Net increase 1,956,973 $ 17,388,729
- ------------------------------------------------------------
Six months ended
March 31, 1997
- ------------------------------------------------------------
Class M Shares Amount
- ------------------------------------------------------------
Shares sold 33,990 $ 302,017
- ------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 2,619 23,266
- ------------------------------------------------------------
36,609 325,283
Shares
repurchased (5,393) (47,978)
- ------------------------------------------------------------
Net increase 31,216 $ 277,305
- ------------------------------------------------------------
Year ended
September 30, 1996
- ------------------------------------------------------------
Class M Shares Amount
- ------------------------------------------------------------
Shares sold 141,757 $ 1,255,609
- ------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 4,139 36,540
- ------------------------------------------------------------
145,896 1,292,149
Shares
repurchased (11,419) (100,473)
- ------------------------------------------------------------
Net increase 134,477 $ 1,191,676
- ------------------------------------------------------------
PUTNAM GROWTH FUNDS
Asia Pacific Growth Fund
Capital Appreciation Fund
Diversified Equity Trust
Europe Growth Fund
Global Growth Fund
Global Natural Resources Fund *
Health Sciences Trust
International Growth Fund +
International New Opportunities Fund
Investors Fund
New Opportunities Fund
OTC & Emerging Growth Fund [DBL. DAGGER]
Vista Fund
Voyager Fund
Voyager Fund II
PUTNAM GROWTH
AND INCOME FUNDS
Balanced Retirement Fund
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
International Growth and Income Fund
New Value Fund
Utilities Growth and Income Fund
PUTNAM INCOME FUNDS
American Government Income Fund
Diversified Income Trust
Diversified Income Trust II
Federal Income Trust
Global Governmental Income Trust
High Yield Advantage Fund
High Yield Trust
Income Fund
Intermediate U.S. Government
Income Fund
Preferred Income Fund
U.S. Government Income Trust
PUTNAM TAX-FREE
INCOME FUNDS
Municipal Income Fund
Tax Exempt Income Fund
Tax-Free High Yield Fund
Tax-Free Insured Fund
State tax-free income funds [SECTION MARK]
Arizona, California, Florida, Massachusetts, Michigan, Minnesota, New
Jersey, New York, Ohio and Pennsylvania
LIFESTAGESM FUNDS
Putnam Asset Allocation Funds--three investment portfolios that spread
your money across a variety of stocks, bonds, and money market
investments.
The three portfolios:
Asset Allocation: Balanced Portfolio
Asset Allocation: Conservative Portfolio
Asset Allocation: Growth Portfolio
MOST CONSERVATIVE
INVESTMENTS **
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 [2 DBL. DAGGERS]
* Formerly Natural Resources Fund
+ Formerly Overseas Growth Fund
[DBL. DAGGERS] Formerly OTC Emerging Growth Fund
[SECTION MARK] Not available in all states.
** Relative to above.
++ An investment in a money market fund is neither insured nor
guaranteed by the U.S. government. These funds are managed to maintain a
price of $1.00 per share, although there is no assurance that this price
will be maintained in the future.
[2 DBL. DAGGERS] 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.
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
Ronald J. Jackson
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
John D. Hughes
Senior Vice President and Treasurer
Lawrence J. Lasser
Vice President
Gordon H. Silver
Vice President
Gary N. Coburn
Vice President
William J. Curtin
Vice President
Jerome J. Jacobs
Vice President
Howard Manning
Vice President and Fund Manager
William N. Shiebler
Vice President
John R. Verani
Vice President
Paul M. O'Neil
Vice President
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. You
can also learn more at Putnam Investments' website: http://www.putnaminv.com.
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.
[PUTNAM LOGO OMITTED]
The Putnam Funds
One Post Office Square
Boston, Massachusetts 02109
- --------------------
Bulk Rate
U.S. Postage
PAID
Putnam
Investments
- --------------------
32905-854/228/759 5/97
