Putnam
New York
Tax Exempt
Opportunities Fund
ANNUAL REPORT ON PERFORMANCE AND OUTLOOK
11-30-98
[LOGO: BOSTON * LONDON * TOKYO]
From the Chairman
[GRAPHIC OMITTED: PHOTO OF GEORGE PUTNAM]
[copyright] Karsh, Ottawa
Dear Shareholder:
In October, New York Tax Exempt Opportunities Fund's trustees voted to
change the fund's fiscal year end from September 30 to November 30. To
keep you up to date with this new reporting period, we will address the
changes that have occurred in the fund's portfolio and the overall
municipal bond market over the past two months. The next report you will
receive will be a semiannual report covering the six months ended May 31,
1999.
After a turbulent autumn, the municipal bond market has calmed down and
even slightly outperformed the Treasury market. As of the end of November,
long-term municipal bond yields are approximately the same as the 30-year
Treasury bond yield -- exhibiting a remarkable level of cheapness against
Treasuries. This ratio had dropped to 97% during November, but by the end
of the month, we had returned to 100% ratios. Considering that this ratio
stood between 85% and 95% for most of the 1990s, today's ratio is quite
unusual.
It is within this environment that Putnam New York Tax Exempt
Opportunities Fund continued to produce high current income exempt from
federal taxes as well as a solid total return. For the 12 months ended
November 30, 1998, the fund's class A shares earned total returns of 6.32%
at net asset value and 1.32% at public offering price. For complete
performance information, please see pages 6 and 7.
* NEW YORK CITY DEBT PARED FOR GREATER DIVERSIFICATION
After a long period of reaping rewards from New York City bonds, your
fund's manager, David Hamlin, has decided to place less emphasis on city
debt going forward. Although the city continues to benefit from strong
financial management, given the turmoil in the financial markets and the
expected impact on Wall Street's income and bonuses, David cautiously
decided to take some profits on several New York City holdings.
One alternative investment, which brought additional diversification to
the portfolio is the New York Mental Health Services Facility issued by
the New York State Dormitory Authority. This issue is insured by the
Municipal Bond Insurance Agency (MBIA) and therefore carries Moody's
highest credit rating of Aaa. While this holding was viewed favorably as
of November 30, 1998, all holdings are subject to review in accordance
with the fund's investment strategy and may vary in the future.
This spring the Long Island Power Authority (LIPA) was responsible for the
largest municipal bond issue in history. In November, LIPA came back to
market with a second offering. As you may be aware, LIPA has received an
abundance of positive publicity on Long Island and was even able to send
rebates out to their customers. Furthermore, the authority's strong
financial management has exceeded many analysts' expectations. David took
advantage of the new offering to add to the fund's position.
* INCREASED EMPHASIS ON CALL PROTECTION
Transportation issues have also fared well over the past year, since
passenger demand has remained steady and fuel costs have been low. This
combination of factors has enabled airlines to increase prices and helped
support airport revenues. With this in mind, David is looking forward to
the New York City Industrial Development Authority's forthcoming sale of
revenue bonds on behalf of British Airways. Because of the scarcity of
these British Airway bonds and their attractive credit rating (A2 by
Moody's and A by Standard & Poor's), he plans to add the British Airways
bonds to the portfolio.
[GRAPHIC OMITTED: horizontal bar chart TOP INDUSTRY SECTORS]
TOP INDUSTRY SECTORS*
Health care 12.6%
Education 12.3%
Transportation 11.4%
Utilities 10.8%
Pollution control 2.2%
Footnote reads:
*Based on net assets as of 11/30/98. Holdings will vary over time.
[GRAPHIC OMITTED: pie chart CREDIT QUALITY OVERVIEW]
CREDIT QUALITY OVERVIEW*
A 22.1%
Baa 20.3%
Ba 7.7%
B 5.1%
VMIG1 0.4%
Aaa 31.7%
Aa 12.7%
Footnote reads:
*As a percentage of market value as of 11/30/98. 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.
As David makes new investments for the fund, he tries to extend the
portfolio's call protection whenever possible. This is done by purchasing
noncallable bonds or bonds with distant call dates. Callable bonds carry
the option of being redeemed, or called away, by the issuer at a certain
future date. Bonds are normally called away if interest rates are lower
than they were when the bonds were originally issued. By avoiding callable
bonds, the portfolio has a better chance of maintaining a consistent level
of income.
* POSITIVE FED POLICY HELPS MUNI MARKET
It is reassuring to know that we have a Federal Reserve Board that is
prepared to step in to stabilize the markets when a crisis occurs. As of
November 30, 1998, the Fed had cut interest rates three times, totaling 75
basis points, sending a positive message to the world and Wall Street.
With the Fed's encouragement, we anticipate a slowing, but still strong
U.S. economy supported by consumers' willingness to spend. And on the
local level, cities and towns are still enjoying increases in tax
collections, always a positive aspect of the municipal bond market.
Looking ahead, the municipal market appears stable with superb value for
tax-conscious investors.
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 11/30/98, there is no guarantee the fund will
continue to hold these securities in the future.
Respectfully yours,
/S/GEORGE PUTNAM
George Putnam
Chairman of the Trustees
January 20, 1999
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, state, and city income taxes,
consistent with capital preservation.
TOTAL RETURN FOR PERIODS ENDED 11/30/98
Class A Class B Class M
(inception date) (11/7/90) (2/1/94) (2/10/95)
NAV POP NAV CDSC NAV POP
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2 months -0.07% -4.79% -0.07% -5.03% -0.01% -3.25%
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1 year 6.32 1.32 5.74 0.74 6.11 2.62
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5 years 36.06 29.56 31.58 29.58 33.70 29.41
Annual average 6.35 5.32 5.64 5.32 5.98 5.29
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Life of fund 78.46 70.06 68.66 68.66 73.15 67.53
Annual average 7.45 6.81 6.70 6.70 7.05 6.61
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COMPARATIVE INDEX RETURNS FOR PERIODS ENDED 11/30/98
Lehman Bros.
Municipal Consumer
Bond Index Price Index
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2 months 0.35% 0.37%
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1 year 7.77 1.55
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5 years 37.81 12.48
Annual average 6.63 2.38
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Life of fund 89.46 22.85
Annual average 8.23 2.58
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Past performance is no assurance of future results. More recent returns
may be more or less than those shown. Returns for class A and class M
shares reflect the current maximum initial sales charges of 4.75% and
3.25% respectively. Class B share returns for the 1-, 5-year (where
available), and life-of-fund periods reflect the applicable contingent
deferred sales charge (CDSC), which is 5% in the first year, declines to
1% in the sixth year, and is eliminated thereafter. Returns shown for
class B and class M shares for periods prior to their inception are
derived from the historical performance of class A shares, adjusted to
reflect both the initial sales charge or CDSC, if any, currently
applicable to each class and in the case of class B and class M shares,
the higher operating expenses applicable to such shares. All returns
assume reinvestment of distributions at NAV. Investment return and
principal value will fluctuate so that an investor's shares when redeemed
may be worth more or less than their original cost.
[GRAPHIC OMITTED: worm chart GROWTH OF A $10,000 INVESTMENT]
GROWTH OF A $10,000 INVESTMENT
Cumulative total return of
A $10,000 investment since
11/7/90
Lehman Brothers
Fund's class A Municipal Bond Consumer Price
Date shares at POP Index Index
11/7/90 9,525 10,000 10,000
11/30/91 10,560 11,248 10,322
11/30/92 11,500 12,376 10,637
11/30/93 12,500 13,748 10,921
11/30/94 12,067 13,028 11,213
11/30/95 14,194 15,492 11,506
11/30/96 14,952 16,403 11,880
11/30/97 15,996 17,581 12,097
11/30/98 $17,006 $18,946 $12,285
Footnote reads:
Past performance is no assurance of future results. At the end of the same
time period, a $10,000 investment in the fund's class B shares would have
been valued at $16,866 and no contingent deferred sales charges would
apply; a $10,000 investment in the fund's class M shares would have been
valued at $17,315 ($16,753 at public offering price). See first page of
performance section for performance calculation method.
PRICE AND DISTRIBUTION INFORMATION
2 months ended 11/30/98
Class A Class B Class M
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Distributions (number) 2 2 2
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Income $0.073718 $0.063633 $0.068789
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Capital gains1 -- -- --
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Total $0.073718 $0.063633 $0.068789
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Share value: NAV POP NAV NAV POP
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9/30/98 $9.27 $9.73 $9.26 $9.25 $9.56
- ------------------------------------------------------------------------------
11/30/98 9.19 9.65 9.19 9.18 9.49
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Current return (end of period)
- ------------------------------------------------------------------------------
Current dividend rate2 4.81% 4.58% 4.15% 4.50% 4.35%
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Taxable equivalent3 8.92 8.49 7.70 8.35 8.08
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Current 30-day SEC yield4 3.87 3.68 3.24 3.60 3.48
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Taxable equivalent3 7.18 6.82 6.01 6.68 6.45
- ------------------------------------------------------------------------------
1 Capital 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.
2 Income portion of most recent distribution, annualized and divided by
NAV or POP at end of period.
3 Assumes maximum 46.08% combined federal, state, and city tax rate.
Results for investors subject to lower tax rates would not be as
advantageous.
4 Based only on investment income, calculated using SEC guidelines.
TOTAL RETURN FOR PERIODS ENDED 12/31/98
(most recent calendar quarter)
Class A Class B Class M
(inception date) (11/7/90) (2/1/94) (2/10/95)
NAV POP NAV CDSC NAV POP
- ------------------------------------------------------------------------------
1 year 5.29% 0.26% 4.61% -0.39% 4.97% 1.53%
- ------------------------------------------------------------------------------
5 years 34.72 28.34 30.07 28.07 32.22 27.85
Annual average 6.14 5.12 5.40 5.07 5.74 5.04
- ------------------------------------------------------------------------------
Life of fund 79.12 70.69 69.01 69.01 73.56 67.93
Annual average 7.41 6.78 6.65 6.65 7.00 6.57
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Past performance is no assurance of future results. More recent returns
may be more or less than those shown. 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.
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 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 4.75% maximum 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. 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.
Consumer Price Index (CPI) is a commonly used measure of inflation; it
does not represent an investment return.
Report of independent accountants
For the period ended November 30, 1998
To the Trustees and Shareholders of
Putnam New York Tax Exempt Opportunities Fund
In our opinion, the accompanying statement of assets and liabilities,
including the portfolio of investments owned (except for bond ratings),
and the related statements of operations and of changes in net assets and
the financial highlights present fairly, in all material respects, the
financial position of Putnam New York Tax Exempt Opportunities Fund (the
"fund") at November 30, 1998, and the results of its operations, the
changes in its net assets and the financial highlights for the periods
indicated, in conformity with generally accepted accounting principles.
These financial statements and financial highlights (hereafter referred to
as "financial statements") are the responsibility of the fund's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe
that our audits, which included confirmation of investments owned at
November 30, 1998 by correspondence with the custodian, provide a
reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 12, 1999
<TABLE>
<CAPTION>
Portfolio of investments owned
November 30, 1998
Key to Abbreviations
AMBAC -- AMBAC Indemnity Corporation
FGIC -- Financial Guaranty Insurance Company
FHA Insd. -- Federal Housing Administration Insured
FRB -- Floating Rate Bonds
G.O. Bonds -- General Obligation Bonds
IFB -- Inverse Floating Rate Bonds
MBIA -- Municipal Bond Investors Assurance Corporation
VRDN -- Variable Rate Demand Notes
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES (98.1%) (a) RATINGS(RAT) VALUE
PRINCIPAL AMOUNT
New York (94.9%)
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$ 3,400,000 Battery Park, City Auth. Rev. Bonds, Ser. A,
AMBAC, 5 1/2s, 11/1/16 Aaa $ 3,612,500
835,000 Chemung Ctny., Indl. Dev. Agcy. Civic Fac. VRDN
(Arnot Ogden Med. Ctr.), Ser. A, 3s, 3/1/19 VMIG1 835,000
5,000,000 Erie Cnty., Indl. Dev. Life Care Cmnty. Rev. Bonds
(Episcopal Church Home), Ser. A, 6s, 2/1/28 B+/P 5,037,500
2,250,000 Essex Cnty., Indl. Dev. Agcy. Rev. Bonds
(Intl. Paper Co.), Ser. A, 6.15s, 4/1/21 A3 2,418,750
2,530,000 Ithaca, Hsg. Corp. Mtge. Rev. Bonds
(Eddygate Park Apts.), 9s, 6/1/06 BBB+/P 2,640,030
2,650,000 Jefferson Cnty., Indl. Dev. Agcy. Solid Waste Disp.
Rev. Bonds (Champion Intl. Corp.), 7.2s, 12/1/20 Baa1 2,941,500
1,360,000 Lockport, Hsg. Dev. Corp. Rev. Bonds
(Urban Pk. Towers), Ser. A, 6s, 10/1/18 Baa2 1,431,400
5,000,000 Long Island, Pwr. Auth. NY Elec. Syst. IFB, 7 1/4s,
12/1/24 (acquired 5/19/98, cost $5,435,000) (RES) A-/P 5,687,500
5,000,000 Long Island, Pwr. Auth. NY Elec. Syst. Rev. Bonds,
FRB, Ser. 65, MBIA, 6.67s, 4/1/12
(acquired 11/3/98, cost $5,420,934) (RES) Aaa 5,443,750
2,500,000 Metropolitan Trans. Auth. Dedicated Tax Fund Rev.
Bonds, Ser. A, MBIA, 6 1/4s, 4/1/11 Aaa 2,937,500
1,000,000 Nassau Cnty. G.O. Bonds, Ser. A, FGIC, 6s, 7/1/13 Aaa 1,145,000
2,300,000 Nassau Cnty., G.O. Bonds, Ser. A, FGIC, 6s, 7/1/11 Aaa 2,642,125
5,000,000 Niagara Falls NY City Schl. Dist. , 5 7/8s, 6/15/19 Baa3 5,331,250
1,100,000 NY & NJ Port Auth. Rev. Bonds
(Kennedy Intl. Arpt.), 6 3/4s, 10/1/19 BB/P 1,230,625
1,000,000 NY & NJ Port. Auth. Rev. Bonds, 6 3/4s, 10/1/11 BB/P 1,122,500
NY City, G.O. Bonds
1,470,000 Ser. D, 8 1/4s, 8/1/11 (Prerefunded) Aaa 1,661,100
210,000 Ser. D, 8 1/4s, 8/1/11 A3 234,675
300,000 Ser. B, 8 1/4s, 6/1/05 A3 367,125
3,120,000 Ser. E, U.S. Govt. Coll. 7.6s, 2/1/05 (Prerefunded) A3 3,521,700
335,000 Ser. E, 7.6s, 2/1/05 A3 374,781
4,400,000 Ser. F, U.S. Govt. Coll. 7.6s, 2/1/05 (Prerefunded) A3 4,966,500
330,000 Ser. F, 7.6s, 2/1/05 A3 369,188
1,800,000 Ser. H, 6s, 8/1/17 A3 1,971,000
2,750,000 Ser. J, 6s, 8/1/17 A3 3,011,250
2,000,000 Ser. I, 5 7/8s, 3/15/14 A3 2,157,500
1,000,000 NY City, G.O. Bonds IFB, AMBAC, 8.13s, 9/1/11 Aaa 1,158,750
NY City, Indl. Dev. Agcy. Civic Fac. Rev. Bonds
8,020,000 (Parking Corp.), 8 1/2s, 12/30/22 BB+/P 9,253,075
1,750,000 (The Lighthouse Inc.), 6 1/2s, 7/1/22 Aa2 1,940,313
NY City, Indl. Dev. Agcy. Rev. Bonds
5,000,000 (Visy Paper Inc.), 7.95s, 1/1/28 B/P 5,650,000
5,000,000 (Brooklyn Navy Yard Cogen. Partners), 6.2s,
10/1/22 Baa3 5,562,500
2,940,000 (Brooklyn Navy Yard Cogen. Partners), 5.65s,
10/1/28 Baa3 2,987,775
1,250,000 (Field Hotel Assoc.), 6s, 11/1/28 B-/P 1,259,375
4,000,000 NY City, Indl. Dev. Agcy. Special Fac. Rev. Bonds
(American Airlines, Inc.), 6.9s, 8/1/24 Baa2 4,435,000
5,000,000 NY City, Muni. Wtr. & Swr. Fin. Auth. Rev. Bonds,
MBIA, 6.82s, 6/15/13 Aaa 5,406,250
11,300,000 NY City, Transitional Fin. Auth. Rev. Bonds, Ser. C,
5s, 5/1/26 Aa3 11,229,375
NY State Dorm. Auth. Rev. Bonds
170,000 (City U.), Ser. D, 8 3/4s, 7/1/03 Baa1 203,150
835,000 (NY Dept of Ed.), 7 3/4s, 7/1/21 Baa1 934,156
5,000,000 (State U. Edl. Fac.), Ser. A, 7 1/2s, 5/15/13 A3 6,456,250
1,605,000 (Cornell U.), Ser. A, 7 3/8s, 7/1/30 Aa2 1,725,375
6,000,000 (Cornell U.), Ser. A, 7 3/8s, 7/1/20 Aa2 6,450,000
500,000 (Wildwood School), 7.3s, 7/1/15 AAA/P 553,750
2,050,000 (Our Lady Of Mercy), 6.3s, 8/1/32 Aaa 2,196,063
2,650,000 (City U. Syst.), Ser. A, FGIC, 5 3/4s, 7/1/09 Aaa 2,981,250
1,310,000 (Mental Hlth. Svcs. Fac.), Ser. B, MBIA,
5 3/4s, 7/1/09 Aaa 1,473,750
3,300,000 (Mental Hlth. Svcs. Fac.), 5s, 2/15/18 A3 3,242,250
5,000,000 (Hlth. Facs.), Ser. 1, 4 3/4s, 1/15/29 Aaa 4,775,000
4,000,000 (St. John's U.), MBIA, 4 3/4s, 7/1/28 Aaa 3,850,000
725,000 (State U. Edl. Fac.), Ser. B, zero % 5/15/09 A3 457,656
NY State Energy Res. & Dev. Auth. Elec. Fac. Rev.
Bonds (Long Island Ltg. Co.), Ser. A
2,000,000 7.15s, 12/1/20 A- 2,187,500
1,605,000 7.15s, 6/1/20 A- 1,755,469
3,500,000 NY State Energy Res. & Dev. Auth. Gas IFB
(Brooklyn Union Gas Co.), 9.212s, 4/1/20 A1 4,480,000
NY State Energy Res. & Dev. Auth. Poll. Control
Rev. Bonds (Hudson Gas)
1,000,000 Ser. A, FGIC, 7 3/8s, 10/1/14 Aaa 1,059,660
1,700,000 Ser. B, FGIC, 7 3/8s, 10/1/14 (SEG) Aaa 1,801,422
NY State Energy Res. & Dev. Auth. Rev. Bonds
1,250,000 (Cons. Edison Co. of NY, Inc.), Ser. C,
7 1/4s, 11/1/24 A1 1,279,850
230,000 Ser. B, 7.15s, 9/1/19 A- 251,563
1,750,000 NY State Energy Research & Dev. Auth. Poll.
Control Rev. Bonds (Niagra Mohawk Pwr. Corp.),
Ser. A, FGIC, 7.2s, 7/1/29 Aaa 2,034,375
2,000,000 NY State Energy Research & Dev. Auth. Gas Fac.
IFB (Brooklyn Union Gas Co.), Ser. B, 10 3/8s,
7/1/26 A1 2,627,500
NY State Env. Fac. Corp. Poll. Control Rev. Bonds
1,000,000 Ser. B, 7 1/2s, 3/15/11 Aa2 1,030,920
2,720,000 (State Wtr. Revolving Fund), Ser. A, 5 7/8s,
6/15/14 Aa2 2,913,800
NY State Env. Facs. Poll. Ctrl. Rev. Bonds
6,975,000 7s, 6/15/12 (Prerefunded) Aaa 7,681,219
210,000 7s, 6/15/12 Aaa 229,688
NY State Hsg. Fin. Agcy. Rev Bonds
50,000 Ser. A, 7 1/4s, 9/15/12 Baa1 55,563
450,000 Ser. A, 7 1/4s, 9/15/12 (Prerefunded) Aaa 507,938
NY State Med. Care Fac. Fin. Agcy. Rev. Bonds
275,000 (Mental Hlth. Svcs. Fac.), Ser. B, 7 7/8s, 8/15/08
(Prerefunded) Aaa 300,438
120,000 (Mental Hlth. Svcs. Fac.), Ser. B, 7 7/8s, 8/15/08 A3 130,050
40,000 (Mental Hlth. Svcs. Fac.), Ser. A, 7.8s, 2/15/19 A3 41,087
30,000 (Mental Hlth. Svcs. Fac.), Ser. A, 7.8s, 2/15/19
(Prerefunded) Aaa 30,882
965,000 Ser. A, MBIA, 7.6s, 2/15/29 Aa2 991,586
1,035,000 Ser. A, MBIA, 7.6s, 2/15/29 Aa2 1,065,005
145,000 (Mental Hlth. Svcs. Fac.), Ser. A, 7 1/2s, 2/15/21
(Prerefunded) Aaa 159,681
85,000 (Mental Hlth. Svcs. Fac.), Ser. A, 7 1/2s, 2/15/21 A3 92,331
510,000 (Mental Hlth.), Ser. D, 7.4s, 2/15/18
(Prerefunded) A- 575,663
205,000 (Mental Hlth. Svcs. Fac.), Ser. D, 7.4s, 2/15/18 A3 227,550
5,750,000 (North Shore U. Hosp.), MBIA, 7.2s, 11/1/20 Aaa 6,260,313
700,000 (Hosp. & Nursing Home Insd. Mtge.), Ser. D,
FHA Insd., 6.6s, 2/15/31 AAA 760,375
4,300,000 NY State Thruway Auth. Hwy. & Bridge Trust
Fund Rev. Bonds, Ser. B, FGIC, 6s, 4/1/14 Aaa 4,799,875
NY State Urban Dev. Corp. Rev. Bonds
1,685,000 (Clarkson Ctr.), 5 1/2s, 1/1/20 Baa1 1,798,738
3,345,000 (Clarkson Ctr.), 5 1/2s, 1/1/15 Baa1 3,574,969
2,000,000 (Syracuse U.), 5 1/2s, 1/1/15 Baa1 2,137,500
5,000,000 (Ctr. for Indl. Innovation), 5 1/2s, 1/1/13 Baa1 5,356,250
2,600,000 (Correctional Fac.), Ser. A, 5s, 1/1/28 Baa1 2,528,500
5,755,000 Port Auth NY & NJ Special Oblig. Rev. Bonds
(Continental/Eastern Laguardia), 9 1/8s, 12/1/15 Ba2 6,330,500
2,000,000 Port Auth. NY & NJ Rev. Bonds, Ser. 83, 6 3/8s,
10/15/17 AA- 2,150,000
175,000 Port Auth. NY & NJ Rev. Bonds Cons., Ser. 78,
6 1/2s, 10/15/08 AA- 189,000
Triborough Bridge & Tunnel Auth. Rev. Bonds, Ser. A
4,000,000 FGIC, 5 1/4s, 1/1/14 AAA 4,170,000
3,350,000 MBIA, 4 3/4s, 1/1/24 AAA 3,236,938
1,430,000 Valley Hlth. Dev. Corp. Mtge. Rev. Bonds, FHA,
11.3s, 2/1/23 A 1,714,213
--------------
225,790,723
Puerto Rico (3.2%)
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4,700,000 Cmnwlth. of PR, Hwy. & Trans. Auth. IFB,
Ser. W, 7.823s, 7/1/08 Baa1 5,299,250
1,000,000 Cmnwlth. of PR, Hwy. & Trans. Auth. Rev. Bonds,
Ser. Y, MBIA, 6 1/4s, 7/1/13 AAA 1,183,750
1,000,000 PR Indl. & Env. Poll. Control Fac. Fin. Auth. Rev.
Bonds, 7.6s, 5/1/14 A1 1,045,023
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7,528,023
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Total Investments (cost $222,747,309) (b) $ 233,318,746
- --------------------------------------------------------------------------------------------------------------------------
(a) Percentages indicated are based on net assets of $237,886,321.
(RAT) The Moody's or Standard & Poor's ratings indicated are believed to be the most recent ratings available at
November 30, 1998 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 November 30, 1998. Securities
rated by Putnam are indicated by "/P" and are not publicly rated. Ratings are not covered by the Report of
independent accountants.
(b) The aggregate identified cost on a tax basis is $222,747,309, resulting in gross unrealized appreciation and
depreciation of $11,778,084 and $1,206,647, respectively, or net unrealized appreciation of $10,571,437.
(RES) Restricted, excluding 144A securities, as to public resale. The total market value of restricted securities
held at November 30, 1998 was $11,131,250 or 4.7% of net assets.
(SEG) A portion of this security was pledged and segregated with the custodian to cover margin requirements for
futures contracts at November 30, 1998.
The rates shown on Floating Rate Bonds (FRB) and Floating Rate Notes (FRN) are the current interest rates
shown at November 30, 1998, which are subject to change based on the terms of the security.
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 November 30, 1998.
The fund had the following industry group concentrations greater than 10% at November 30, 1998 (as a
percentage of net assets):
Health care 12.6%
Education 12.3
Transportation 11.4
Utilities 10.8
The fund had the following insurance concentration greater than 10% at November 30, 1998 (as a percentage of
net assets):
MBIA 13.4%
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
Futures Contracts Outstanding at November 30,1998
Aggregate Face Expiration Unrealized
Total Value Value Date Depreciation
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
20yr Treasury Bond (Short) $ 3,369,438 $ 3,355,232 Mar-99 $ (14,206)
US Treasury Bond (Short) 10,257,656 9,973,958 Dec-98 (283,698)
- ------------------------------------------------------------------------------
$ (297,904)
- ------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of assets and liabilities
November 30, 1998
<S> <C>
Assets
- -----------------------------------------------------------------------------------------------
Investments in securities, at value
(identified cost $222,747,309) (Note 1) $233,318,746
- -----------------------------------------------------------------------------------------------
Cash 773,152
- -----------------------------------------------------------------------------------------------
Interest and other receivables 4,415,809
- -----------------------------------------------------------------------------------------------
Receivables for securities sold 109,463
- -----------------------------------------------------------------------------------------------
Receivable for shares of the fund sold 515,193
- -----------------------------------------------------------------------------------------------
Total assets 239,132,363
Liabilities
- -----------------------------------------------------------------------------------------------
Distributions payable to shareholders 234,195
- -----------------------------------------------------------------------------------------------
Payable for shares of the fund repurchased 459,621
- -----------------------------------------------------------------------------------------------
Payable for compensation of Manager (Note 2) 238,544
- -----------------------------------------------------------------------------------------------
Payable for investor servicing and custodian fees (Note 2) 45,252
- -----------------------------------------------------------------------------------------------
Payable for compensation of Trustees (Note 2) 15,516
- -----------------------------------------------------------------------------------------------
Payable for administrative services (Note 2) 1,080
- -----------------------------------------------------------------------------------------------
Payable for distribution fees (Note 2) 101,204
- -----------------------------------------------------------------------------------------------
Payable for variation margin 137,643
- -----------------------------------------------------------------------------------------------
Other accrued expenses 12,987
- -----------------------------------------------------------------------------------------------
Total liabilities 1,246,042
- -----------------------------------------------------------------------------------------------
Net assets $237,886,321
Represented by
- -----------------------------------------------------------------------------------------------
Paid-in capital (Notes 1 and 4) $228,379,493
- -----------------------------------------------------------------------------------------------
Distributions in excess of net investment income (Note 1) (131,660)
- -----------------------------------------------------------------------------------------------
Accumulated net realized loss on investment (Note 1) (635,045)
- -----------------------------------------------------------------------------------------------
Net unrealized appreciation of investments 10,273,533
- -----------------------------------------------------------------------------------------------
Total -- Representing net assets applicable to
capital shares outstanding $237,886,321
Computation of net asset value and offering price
- -----------------------------------------------------------------------------------------------
Net asset value and redemption price per class A share
($166,815,813 divided by 18,144,277 shares) $9.19
- -----------------------------------------------------------------------------------------------
Offering price per class A share (100/95.25 of $9.19)* $9.65
- -----------------------------------------------------------------------------------------------
Net asset value and offering price per class B share
($68,512,800 divided by 7,458,594 shares)*** $9.19
- -----------------------------------------------------------------------------------------------
Net asset value and redemption price per class M share
($2,557,708 divided by 278,685 shares) $9.18
- -----------------------------------------------------------------------------------------------
Offering price per class M share (100/96.75 of $9.18)** $9.49
- -----------------------------------------------------------------------------------------------
* 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.
</TABLE>
<TABLE>
<CAPTION>
Statement of operations
Two months ended Year ended
November 30 September 30
1998 1998
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Tax exempt interest income: $ 2,269,315 $13,787,911
- ----------------------------------------------------------------------------------------------------------------
Expenses:
- ----------------------------------------------------------------------------------------------------------------
Compensation of Manager (Note 2) 238,544 1,386,191
- ----------------------------------------------------------------------------------------------------------------
Investor servicing and custodian fees (Note 2) 68,335 329,116
- ----------------------------------------------------------------------------------------------------------------
Compensation of Trustees (Note 2) 3,293 11,501
- ----------------------------------------------------------------------------------------------------------------
Administrative services (Note 2) 1,087 6,443
- ----------------------------------------------------------------------------------------------------------------
Distribution fees -- Class A (Note 2) 55,833 332,410
- ----------------------------------------------------------------------------------------------------------------
Distribution fees -- Class B (Note 2) 92,795 530,607
- ----------------------------------------------------------------------------------------------------------------
Distribution fees -- Class M (Note 2) 2,066 11,987
- ----------------------------------------------------------------------------------------------------------------
Reports to shareholders 237 15,801
- ----------------------------------------------------------------------------------------------------------------
Registration fees -- 2,487
- ----------------------------------------------------------------------------------------------------------------
Auditing 17,132 35,357
- ----------------------------------------------------------------------------------------------------------------
Legal 623 14,850
- ----------------------------------------------------------------------------------------------------------------
Postage 860 17,062
- ----------------------------------------------------------------------------------------------------------------
Other -- 20,540
- ----------------------------------------------------------------------------------------------------------------
Total expenses 480,805 2,714,352
- ----------------------------------------------------------------------------------------------------------------
Expense reduction (Note 2) (9,201) (70,547)
- ----------------------------------------------------------------------------------------------------------------
Net expenses 471,604 2,643,805
- ----------------------------------------------------------------------------------------------------------------
Net investment income 1,797,711 11,144,106
- ----------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments (Notes 1 and 3) 477,112 (167,027)
- ----------------------------------------------------------------------------------------------------------------
Net realized loss on futures contracts (Note 1) (175,063) (649,372)
- ----------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments
and futures during the period (2,149,643) 5,970,419
- ----------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments (1,847,594) 5,154,020
- ----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations $ (49,883) $16,298,126
- ----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of changes in net assets
Two months ended
November 30 Year ended September 30
----------------------------
1998 1998 1997
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Increase (decrease) in net assets
- -------------------------------------------------------------------------------------------------------------------------------
Operations:
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income $1,797,711 $11,144,106 $11,292,366
- -------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 302,049 (816,399) 1,415,869
- -------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation)
of investments (2,149,643) 5,970,419 4,286,563
- -------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations (49,883) 16,298,126 16,994,798
- -------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
- -------------------------------------------------------------------------------------------------------------------------------
From net investment income
Class A (1,336,326) (8,443,590) (8,947,477)
- -------------------------------------------------------------------------------------------------------------------------------
Class B (472,302) (2,752,969) (2,314,259)
- -------------------------------------------------------------------------------------------------------------------------------
Class M (18,496) (114,274) (91,884)
- -------------------------------------------------------------------------------------------------------------------------------
From net realized gain on investments
Class A -- (596,654) --
- -------------------------------------------------------------------------------------------------------------------------------
Class B -- (211,900) --
- -------------------------------------------------------------------------------------------------------------------------------
Class M -- (8,554) --
- -------------------------------------------------------------------------------------------------------------------------------
Increase from capital share
transactions (Note 4) 751,694 10,240,092 3,502,893
- -------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (1,125,313) 14,410,277 9,144,071
Net assets
- -------------------------------------------------------------------------------------------------------------------------------
Beginning of period 239,011,634 224,601,357 215,457,286
- -------------------------------------------------------------------------------------------------------------------------------
End of period (including distributions
in excess of net investment income
of $131,660 and $67,872 and
undistributed net investment income
of $130,474, respectively) $237,886,321 $239,011,634 $224,601,357
- -------------------------------------------------------------------------------------------------------------------------------
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
- ------------------------------------------------------------------------------------------------------------------------------------
Two months
Per-share ended
operating performance Nov. 30+ Year ended September 30
- ------------------------------------------------------------------------------------------------------------------------------------
1998 1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $9.27 $9.10 $8.87 $8.80 $8.48 $9.12
- ------------------------------------------------------------------------------------------------------------------------------------
Investment operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income .07 .46 .49 .49 .52 .54
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments (.08) .21 .23 .07 .32 (.62)
- ------------------------------------------------------------------------------------------------------------------------------------
Total from
investment operations (.01) .67 .72 .56 .84 (.08)
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions:
- ------------------------------------------------------------------------------------------------------------------------------------
From net
investment income (.07) (.47) (.49) (.49) (.52) (.54)
- ------------------------------------------------------------------------------------------------------------------------------------
From net realized gain
on investments -- (.03) -- -- -- (.02)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (.07) (.50) (.49) (.49) (.52) (.56)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $9.19 $9.27 $9.10 $8.87 $8.80 $8.48
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
- ------------------------------------------------------------------------------------------------------------------------------------
Total investment return
at net asset value (%)(a) (0.07)* 7.55 8.33 6.48 10.27 (.89)
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $166,816 $168,032 $165,993 $172,170 $175,210 $175,741
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(b) .17* 1.00 .96 1.00 1.01 .98
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (%) .79* 5.00 5.42 5.53 6.12 6.22
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 9.22* 42.76 117.00 270.34 120.38 13.85
- ------------------------------------------------------------------------------------------------------------------------------------
+ The fiscal year end has advanced from September 30 to November 30.
++ 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).
</TABLE>
<TABLE>
<CAPTION>
Financial highlights
(For a share outstanding throughout the period)
CLASS B
- ------------------------------------------------------------------------------------------------------------------------------------
Two months For the period
Per-share ended Feb. 1, 1994++
operating performance Nov. 30+ Year ended September 30 to Sept. 30
- ------------------------------------------------------------------------------------------------------------------------------------
1998 1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $9.26 $9.09 $8.86 $8.79 $8.48 $9.07
- ------------------------------------------------------------------------------------------------------------------------------------
Investment operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income .06 .40 .43 .43 .47 .32
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments (.07) .21 .23 .07 .31 (.60)
- ------------------------------------------------------------------------------------------------------------------------------------
Total from
investment operations (.01) .61 .66 .50 .78 (.28)
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions:
- ------------------------------------------------------------------------------------------------------------------------------------
From net
investment income (.06) (.41) (.43) (.43) (.47) (.31)
- ------------------------------------------------------------------------------------------------------------------------------------
From net realized gain
on investments -- (.03) -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (.06) (.44) (.43) (.43) (.47) (.31)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $9.19 $9.26 $9.09 $8.86 $8.79 $8.48
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
- ------------------------------------------------------------------------------------------------------------------------------------
Total investment return
at net asset value (%)(a) (0.07)* 6.86 7.63 5.78 9.46 (3.06)*
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $68,513 $68,547 $56,244 $41,795 $24,259 $8,622
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(b) .28* 1.65 1.61 1.66 1.65 1.05*
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (%) .68* 4.36 4.76 4.83 5.28 3.39*
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 9.22* 42.76 117.00 270.34 120.38 13.85
- ------------------------------------------------------------------------------------------------------------------------------------
+ The fiscal year end has advanced from September 30 to November 30.
++ 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).
</TABLE>
<TABLE>
<CAPTION>
Financial highlights
(For a share outstanding throughout the period)
CLASS M
- ------------------------------------------------------------------------------------------------------------------------------------
Two months For the period
Per-share ended Feb. 10, 1965++
operating performance Nov. 30+ Year ended September 30 to Sept. 30
- ------------------------------------------------------------------------------------------------------------------------------------
1998 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $9.25 $9.08 $8.86 $8.79 $8.51
- ------------------------------------------------------------------------------------------------------------------------------------
Investment operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income .07 .43 .46 .47 .31
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments (.07) .21 .22 .06 .29
- ------------------------------------------------------------------------------------------------------------------------------------
Total from
investment operations -- .64 .68 .53 .60
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions:
- ------------------------------------------------------------------------------------------------------------------------------------
From net
investment income (.07) (.44) (.46) (.46) (.32)
- ------------------------------------------------------------------------------------------------------------------------------------
From net realized gain
on investments -- (.03) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (.07) (.47) (.46) (.46) (.32)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $9.18 $9.25 $9.08 $8.86 $8.79
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
- ------------------------------------------------------------------------------------------------------------------------------------
Total investment return
at net asset value (%)(a) (0.01)* 7.23 7.89 6.15 7.11*
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $2,558 $2,433 $2,365 $1,492 $299
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(b) .22* 1.30 1.26 1.30 .83*
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (%) .74* 4.71 5.09 5.03 3.21*
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 9.22* 42.76 117.00 270.34 120.38
- ------------------------------------------------------------------------------------------------------------------------------------
+ The fiscal year end has advanced from September 30 to November 30.
++ 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).
</TABLE>
Notes to financial statements
November 30, 1998
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 by investing in a portfolio of New
York tax-exempt securities which Putnam Investment Management, Inc.
("Putnam Management"), the fund's Manager, a wholly-owned subsidiary of
Putnam Investments, Inc. believes does not involve undue risk to income or
principal. The fund has changed its fiscal year end from September 30 to
November 30.
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) Futures and options contracts The fund may use futures and options
contracts to hedge against changes in the values of securities the fund
owns or expects to purchase. The fund may also write options on securities
it owns or in which it may invest to increase its current returns.
The potential risk to the fund is that the change in value of futures and
options contracts may not correspond to the change in value of the hedged
instruments. In addition, losses may arise from changes in the value of
the underlying instruments, if there is an illiquid secondary market for
the contracts, or if the counterparty to the contract is unable to
perform. When the contract is closed, the fund records a realized gain or
loss equal to the difference between the value of the contract at the time
it was opened and the value at the time it was closed. Realized gains and
losses on purchased options are included in realized gains and losses on
investment securities.
Futures contracts are valued at the quoted daily settlement prices
established by the exchange on which they trade. Exchange traded options
are valued at the last sale price, or if no sales are reported, the last
bid price for purchased options and the last ask price for written
options. Options traded over-the-counter are valued using prices supplied
by dealers.
D) Line of credit The fund has entered into a committed line of credit
with certain banks. This line of credit agreement includes restrictions
that the fund maintain an asset coverage ratio of at least 300% and
borrowings must not exceed prospectus limitations. For the two months
ended November 30, 1998, the fund had no borrowings against the line of
credit.
E) 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, as amended. Therefore, no provision has been made
for federal taxes on income, capital gains or unrealized appreciation on
securities held nor for excise tax on income and capital gains.
F) 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. These differences include temporary and
permanent differences of unrealized gains and losses on certain futures
contracts and straddle loss deferrals. Reclassifications are made to the
fund's capital accounts to reflect income and gains available for
distribution (or available capital loss carryovers) under income tax
regulations. For the two months ended November 30, 1998, the fund
reclassified $34,375 to increase distributions in excess of net investment
income and $34,375 to increase paid-in-capital. The calculation of net
investment income per share in the financial highlights table excludes
these adjustments.
G) 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. The premium in excess of the call
price, if any, is amortized to the call date; thereafter, the remaining
excess premium is amortized to maturity. Discounts on zero coupon bonds,
and original issue discount are accreted according to the yield to
maturity basis.
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% thereafter.
The fund reimburses Putnam Management an allocated amount 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 subsidiary of Putnam Investments, Inc. Investor
servicing agent functions are provided by Putnam Investor Services, a
division of PFTC.
For the two months ended November 30, 1998, fund expenses were reduced by
$9,201 under expense offset arrangements with PFTC and brokerage service
arrangements. 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.
Each Trustee of the fund receives an annual Trustee fee, of which $500 has
been allocated to the fund, 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 has adopted a Trustee Fee Deferral Plan (the "Deferral 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 Deferral 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 to 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 two months ended November 30, 1998, Putnam Mutual Funds Corp.,
acting as underwriter received net commissions of $2,989 and $313 from the
sale of class A and class M shares, respectively and $43,252 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 that were purchased without an initial sales charge as part of an
investment of $1 million or more. For the two months ended November 30,
1998, Putnam Mutual Funds Corp., acting as underwriter received no monies
on class A redemptions.
Note 3
Purchase and sales of securities
During the two months ended November 30, 1998, purchases and sales of
investment securities other than short-term investments aggregated
$26,144,637 and $21,988,595, respectively. Purchases and sales of
short-term municipal obligations aggregated $25,470,000 and $30,910,000,
respectively. 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 November 30, 1998, there was an unlimited number of shares of
beneficial interest authorized. Transactions in capital shares were as
follows:
Two months ended
November 30, 1998
- -----------------------------------------------------------------------------
Class A Shares Amount
- -----------------------------------------------------------------------------
Shares sold 299,089 $2,761,011
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 76,729 706,204
- -----------------------------------------------------------------------------
375,818 3,467,215
Shares
repurchased (364,706) (3,362,686)
- -----------------------------------------------------------------------------
Net increase 11,112 $ 104,529
- -----------------------------------------------------------------------------
Year ended
September 30, 1998
- -----------------------------------------------------------------------------
Class A Shares Amount
- -----------------------------------------------------------------------------
Shares sold 2,468,511 $22,614,893
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 515,561 4,727,728
- -----------------------------------------------------------------------------
2,984,072 27,342,621
Shares
repurchased (3,088,923) (28,287,931)
- -----------------------------------------------------------------------------
Net decrease (104,851) $ (945,310)
- -----------------------------------------------------------------------------
Year ended
September 30, 1997
- -----------------------------------------------------------------------------
Class A Shares Amount
- -----------------------------------------------------------------------------
Shares sold 3,620,335 $ 32,317,239
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 503,552 4,502,230
- -----------------------------------------------------------------------------
4,123,887 36,819,469
Shares
repurchased (5,295,872) (47,255,173)
- -----------------------------------------------------------------------------
Net decrease (1,171,985) $(10,435,704)
- -----------------------------------------------------------------------------
Two months ended
November 30, 1998
- -----------------------------------------------------------------------------
Class B Shares Amount
- -----------------------------------------------------------------------------
Shares sold 224,952 $2,070,741
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 30,723 282,609
- -----------------------------------------------------------------------------
255,675 2,353,350
Shares
repurchased (200,886) (1,849,493)
- -----------------------------------------------------------------------------
Net increase 54,789 $ 503,857
- -----------------------------------------------------------------------------
Year ended
September 30, 1998
- -----------------------------------------------------------------------------
Class B Shares Amount
- -----------------------------------------------------------------------------
Shares sold 2,125,903 $ 19,476,818
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 197,745 1,812,031
- -----------------------------------------------------------------------------
2,323,648 21,288,849
Shares
repurchased (1,105,098) (10,128,591)
- -----------------------------------------------------------------------------
Net increase 1,218,550 $ 11,160,258
- -----------------------------------------------------------------------------
Year ended
September 30, 1997
- -----------------------------------------------------------------------------
Class B Shares Amount
- -----------------------------------------------------------------------------
Shares sold 2,266,604 $20,236,321
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 153,804 1,375,031
- -----------------------------------------------------------------------------
2,420,408 21,611,352
Shares
repurchased (951,628) (8,500,966)
- -----------------------------------------------------------------------------
Net increase 1,468,780 $13,110,386
- -----------------------------------------------------------------------------
Two months ended
November 30, 1998
- -----------------------------------------------------------------------------
Class M Shares Amount
- -----------------------------------------------------------------------------
Shares sold 14,780 $135,344
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 1,556 14,294
- -----------------------------------------------------------------------------
16,336 149,638
Shares
repurchased (689) (6,330)
- -----------------------------------------------------------------------------
Net increase 15,647 $143,308
- -----------------------------------------------------------------------------
Year ended
September 30, 1998
- -----------------------------------------------------------------------------
Class M Shares Amount
- -----------------------------------------------------------------------------
Shares sold 43,991 $ 402,844
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 9,902 90,644
- -----------------------------------------------------------------------------
53,893 493,488
Shares
repurchased (51,170) (468,344)
- -----------------------------------------------------------------------------
Net increase 2,723 $ 25,144
- -----------------------------------------------------------------------------
Year ended
September 30, 1997
- -----------------------------------------------------------------------------
Class M Shares Amount
- -----------------------------------------------------------------------------
Shares sold 126,540 $1,138,814
- -----------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 6,506 58,176
- -----------------------------------------------------------------------------
133,046 1,196,990
Shares
repurchased (41,167) (368,779)
- -----------------------------------------------------------------------------
Net increase 91,879 $ 828,211
- -----------------------------------------------------------------------------
Federal tax information
(Unaudited)
Pursuant to Section 852 of the Internal Revenue Code, the fund hereby
designates $347,198 as a capital gain for its taxable year ended November
30, 1998.
The fund has designated 100% of dividends paid from net investment income
during the fiscal year as tax exempt for Federal income tax purposes.
The Form 1099 you receive in January 1999 will show the tax status of all
distributions paid to your account in calendar 1998.
Fund information
INVESTMENT MANAGER
Putnam Investment
Management, Inc.
One Post Office Square
Boston, MA 02109
MARKETING SERVICES
Putnam Mutual Funds Corp.
One Post Office Square
Boston, MA 02109
CUSTODIAN
Putnam Fiduciary Trust Company
LEGAL COUNSEL
Ropes & Gray
INDEPENDENT
ACCOUNTANTS
PricewaterhouseCoopers LLP
TRUSTEES
George Putnam, Chairman
William F. Pounds, Vice Chairman
John A. Hill, Vice Chairman
Jameson Adkins Baxter
Hans H. Estin
Ronald J. Jackson
Paul L. Joskow
Elizabeth T. Kennan
Lawrence J. Lasser
John H. Mullin III
Robert E. Patterson
Donald S. Perkins
George Putnam, III
A.J.C. Smith
W. Thomas Stephens
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
Ian C. Ferguson
Vice President
Brett C. Browchuk
Vice President
Jerome J. Jacobs
Vice President
David E. Hamlin
Vice President and Fund Manager
Richard A. Monaghan
Vice President
John R. Verani
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' web site:
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 the
principal amount invested.
[LOGO OMITTED]
PUTNAM INVESTMENTS
The Putnam Funds
One Post Office Square
Boston, Massachusetts 02109
www.putnaminv.com
- ---------------------
BULK RATE
U.S. POSTAGE PAID
PUTNAM
INVESTMENTS
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AN052 854/228/759 1/99
