Putnam
New York
Tax Exempt
Opportunities Fund
SEMIANNUAL REPORT ON PERFORMANCE AND OUTLOOK
5-31-00
[SCALE LOGO OMITTED]
From the Trustees
[GRAPHIC OMITTED: PHOTO OF JOHN A. HILL AND GEORGE PUTNAM, III]
Dear Shareholder:
It is a pleasure to greet you in our new roles as Chairman of the
Trustees and President of the Funds. As you know, both of us have been
members of the Board of Trustees for a number of years -- years in which
Putnam has experienced tremendous growth and transformed itself from a
respected U.S. investment management firm to a financial institution
with a global presence.
As the organization makes its way into the new century, we are certain
that the changes that lie ahead will be even more breathtaking in their
scope. What will not change is the Trustees' dedication to serving the
best interests of our shareholders.
We embark upon this new era of Putnam's rich heritage with confidence
and we look forward to the opportunity of continuing to help you meet
your financial objectives for many years to come.
Respectfully yours,
/S/ JOHN A. HILL /S/ GEORGE PUTNAM, III
John A. Hill George Putnam, III
Chairman of the Trustees President of the Funds
July 19, 2000
REPORT FROM THE FUND MANAGER
David E. Hamlin
The midyear mark for Putnam New York Tax Exempt Opportunities Fund
brings with it the possibility of improvement in the investment
environment for fixed-income securities after a seemingly interminable
downturn. The stock market's volatility and the Federal Reserve Board's
commitment to containing inflation, as evidenced by three interest-rate
increases in the past six months alone, appear to have given investors
reason to rethink the potential of municipal bonds. The current
inversion of the U.S. Treasury yield curve, which is a result of not
only the Fed's actions but also heightened demand for long-term bonds
created by the Treasury's announcement to repurchase $30 million of its
bonds from the market, provides reason to think that the turning point
may not be too far away.
Having said that, however, the performance of Putnam New York Tax Exempt
Opportunities Fund reflects a market that was under considerable
pressure for much of the past six months. Our strategies throughout the
period were forward looking and designed to take advantage of the
attractive opportunities the downturn presented.
Total return for 6 months ended 5/31/00
Class A Class B Class C Class M
NAV POP NAV CDSC NAV CDSC NAV POP
----------------------------------------------------------------------
-0.17% -4.86% -0.38% -5.24% -0.45% -1.43% -0.33% -3.61%
----------------------------------------------------------------------
Past performance is no indication of future results. Performance
information for longer periods and explanation of performance
calculation methods begin on page 6.
* PORTFOLIO'S INTEREST-RATE SENSITIVITY INCREASED
Before the Fed began increasing interest rates in the summer of 1999, we
had the portfolio defensively positioned in terms of duration. That is,
we were relatively short compared to our benchmark and competitors.
Duration is a measure of a fund's sensitivity to interest-rate changes.
A shorter duration tends to help preserve portfolio value when rates
rise, while a longer duration typically gives a fund greater price
appreciation potential when rates decline. The fund's shorter duration
stance contributed to the fund's performance, as rates rose last year.
[GRAPHIC OMITTED: horizontal bar chart TOP INDUSTRY SECTORS]
TOP INDUSTRY SECTORS*
Transportation 18.2%
Education 12.8%
Health care 12.7%
Utilities 9.3%
Paper and
forest products 5.9%
Footnote reads:
*Based on net assets as of 5/31/00. Holdings will vary over time.
As fiscal 2000 began, we extended the fund's duration so that it was
neutral to slightly longer than the competition, incrementally
increasing duration as the semiannual period progressed; by period's
end, it stood at roughly eight years. Though rates continued to rise and
bond prices remained under pressure, we believed it was the best time to
position the portfolio for the next turn in the road -- namely a
slowdown in the economy. If that, in fact, should occur, interest-rate
cuts may follow. A relatively longer duration should then serve the fund
well.
* PRICES OF LOWER-RATED BONDS COMPELLING
The difference in yield between municipal bonds of different credit
ratings has widened considerably since our last report. Interestingly
the reasons for this had nothing to do with an economic slowdown, as is
typical. Rather, adverse developments in the health-care sector combined
with widespread redemptions from municipal bond funds created low demand
at a time when new supply was coming to market. In order to attract
buyers, many municipal issuers had to ratchet up yields. As a result,
prices of lower-rated securities became extremely attractive.
[GRAPHIC OMITTED: pie chart CREDIT QUALITY OVERVIEW]
CREDIT QUALITY OVERVIEW*
AAA/Aaa -- 33.9%
AA/Aa -- 4.9%
A -- 28.0%
BBB/Baa -- 13.2%
BB/Ba -- 6.0%
B -- 14.0%
Footnote reads:
*As a percentage of market value as of 5/31/00. A bond rated BBB/Baa or
higher is considered investment grade. Percentages may include unrated
bonds considered by Putnam Management to be of comparable quality. Ratings
will vary over time.
". . . New Yorkers try to shelter much of their income from the tax man. One
way . . . is by investing in New York's municipal bonds, or in a fund that
buys such bonds."
-- "It Pays To Go Triple-Tax Free," New York Post, March 19, 2000
Throughout the first half of fiscal 2000 and, in fact, in the months
prior to its outset, we actively sought to increase the portfolio's
exposure to credit-sensitive issues by adding to holdings that were
either below investment grade or non-rated by the industry's rating
agencies. We did so by paring back your fund's weighting in two types of
bonds: older bonds with relatively lower yields and higher-yielding
bonds that were scheduled to be called by the issuer within a year or
two. We believe the stage is being set for stabilization and perhaps
even a decline in interest rates later this year. By putting money to
work now in securities offering high relative yields, we believe we are
positioning your fund to participate in any price appreciation that may
occur should rates decline.
* CREDIT RESEARCH PLAYS VITAL ROLE IN SECURITY SELECTION
Though many of your fund's holdings may not be rated by the rating
agencies, Putnam's credit research department conducts thorough credit
analysis and assigns its own ratings to each holding within the
portfolio. We, therefore, have a high comfort level with the securities
we purchase. By period's end, 20.3% of the fund's assets were invested
in nonrated bonds. Furthermore, we pay close attention to the
portfolio's issue diversification when adding any security, making sure
we do not take undue risks on any single holding as is consistent with
the fund's objectives.
Over the period, we added to the fund's existing position in Southampton
Hospital issues. Located in affluent Suffolk County, Southampton
Hospital had gotten into a bit of financial trouble, creating what we
believed was a buying opportunity. Putnam's research concluded that
despite recent problems, the hospital would survive and likely flourish.
"With the stock market volatility and higher interest rates. . . bond
funds are beginning to look more attractive to some investors."
--"Your Money," The Orange County Register, May 6, 2000
Other lower-rated, higher-yielding issues worth mentioning include
Albany Medical Center and Wartburg Senior Housing, two healthcare bonds
for which new management and local demographics bode well. Visy Paper,
Inc. and Solvay Paperboard LLC are two of the four forest/paper products
obligations within the fund that have bright prospects. Both linerboard
recycling plants, these facilities have been doing well in the face of
improved linerboard prices. Though all these bonds suffered as credit
spreads widened, we continue to hold them. Given the issuers' strong
fundamentals combined with the securities' long maturities and lower
ratings, we believe they are poised for solid performance if the Fed
succeeds in tethering inflation. 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.
* INTERMEDIATE-TERM, DISCOUNT-COUPON BONDS ON RADAR SCREEN
Your fund's heavy exposure to longer-term bonds contributed to
performance as the municipal yield curve flattened in recent months. The
increased demand for longer-term Treasury bonds had a spillover effect
on the municipal market. As the yields on longer-term bonds declined,
their prices rose, buoying many of the fund's holdings. Going forward,
we will keep a close eye on the intermediate part of the yield curve,
searching for select opportunities to purchase discount-coupon
longer-term intermediate securities such as those in the 15- to 20-year
range. If the market recovers and short-term interest rates decline
later in the fiscal year, the municipal yield curve will likely resume
its typical steep bias. We believe intermediate-term bonds, particularly
those selling at prices below par value, are especially likely to
increase in value.
Of course, there is no guarantee that municipal bonds will experience a
turnaround and a real possibility that the Fed may well raise interest
rates again before the market has a complete change of heart. However,
given the strength of the New York City economy and the steady albeit
slower growth of western New York, the fundamental condition of the
state's municipalities remains healthy. With new issuance levels down
considerably from last year, we hold a brighter outlook for the New York
municipal bond market and the long-term prospects for your fund.
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 5/31/00, 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
a high level of current income free from federal, New York state, and
New York City personal income tax as we believe to be consistent with
preservation of capital.
TOTAL RETURN FOR PERIODS ENDED 5/31/00
Class A Class B Class C Class M
(inception dates) (11/7/90) (2/1/94) (7/26/99) (2/10/95)
NAV POP NAV CDSC NAV CDSC NAV POP
------------------------------------------------------------------------------
6 months -0.17% -4.86% -0.38% -5.24% -0.45% -1.43% -0.33% -3.61%
------------------------------------------------------------------------------
1 year -3.13 -7.74 -3.66 -8.25 -3.86 -4.77 -3.44 -6.55
------------------------------------------------------------------------------
5 years 23.55 17.66 19.70 17.82 18.77 18.77 21.65 17.77
Annual average 4.32 3.31 3.66 3.33 3.50 3.50 4.00 3.33
------------------------------------------------------------------------------
Life of fund 74.00 65.81 62.84 62.84 61.17 61.17 68.04 62.59
Annual average 5.96 5.43 5.23 5.23 5.12 5.12 5.58 5.22
------------------------------------------------------------------------------
COMPARATIVE INDEX RETURNS FOR PERIODS ENDED 5/31/00
Lehman Brothers Consumer
Municipal Bond Index price index
----------------------------------------------------------------------
6 months 1.03% 1.72%
----------------------------------------------------------------------
1 year -0.86 3.07
----------------------------------------------------------------------
5 years 28.55 12.55
Annual average 5.15 2.39
----------------------------------------------------------------------
Life of fund 89.34 28.31
Annual average 6.89 2.64
----------------------------------------------------------------------
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-, and 10-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. For
class C shares, returns for periods prior to their inception are derived
from the historical performance of class A shares, adjusted to reflect
both the CDSC currently applicable to class C shares, which is 1% for
the first year and is eliminated thereafter, and the higher operating
expenses applicable to class C 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.
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PRICE AND DISTRIBUTION INFORMATION 6 MONTHS ENDED 5/31/00
Class A Class B Class C Class M
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Distributions
(number) 6 6 6 6
----------------------------------------------------------------------------------------------
Income $0.234528 $0.207023 $0.200915 $0.221491
----------------------------------------------------------------------------------------------
Capital gains1 -- -- -- --
----------------------------------------------------------------------------------------------
Total $0.234528 $0.207023 $0.200915 $0.221491
----------------------------------------------------------------------------------------------
Share value: NAV POP NAV NAV NAV POP
----------------------------------------------------------------------------------------------
11/30/99 $8.52 $8.94 $8.51 $8.52 $8.51 $8.80
----------------------------------------------------------------------------------------------
5/31/00 8.27 8.68 8.27 8.28 8.26 8.54
----------------------------------------------------------------------------------------------
Current return (end of period)
----------------------------------------------------------------------------------------------
Current dividend rate2 5.60% 5.34% 4.94% 4.78% 5.29% 5.12%
----------------------------------------------------------------------------------------------
Taxable equivalent(a)3 9.95 9.49 8.78 8.50 9.40 9.10
----------------------------------------------------------------------------------------------
Taxable equivalent(b)3 10.37 9.89 9.15 8.86 9.80 9.48
----------------------------------------------------------------------------------------------
30-day SEC Yield4 5.32 5.07 4.67 4.51 5.02 4.86
----------------------------------------------------------------------------------------------
Taxable equivalent(a)3 9.46 9.01 8.30 8.02 8.92 8.64
----------------------------------------------------------------------------------------------
Taxable equivalent(b)3 9.86 9.39 8.65 8.35 9.30 9.00
----------------------------------------------------------------------------------------------
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 (a) maximum 43.74% combined federal income tax, New York state personal income tax
rate or (b) maximum 46.02% combined federal, New York state and New York City tax rate.
Results for investors subject to lower tax rates would not be as advantageous.
4 Based on investment income, calculated using SEC guidelines.
</TABLE>
TOTAL RETURN FOR PERIODS ENDED 6/30/00 (most recent calendar quarter)
Class A Class B Class C Class M
(inception dates) (11/7/90) (2/1/94) (7/26/99) (2/10/95)
NAV POP NAV CDSC NAV CDSC NAV POP
------------------------------------------------------------------------------
6 months 3.91% -1.06% 3.47% -1.53% 3.51% 2.51% 3.76% 0.39%
------------------------------------------------------------------------------
1 year 0.99 -3.80 0.23 -4.55 0.18 -0.78 0.68 -2.63
------------------------------------------------------------------------------
5 years 27.18 21.19 23.10 21.16 22.03 22.03 25.27 21.24
Annual average 4.93 3.92 4.24 3.91 4.06 4.06 4.61 3.93
------------------------------------------------------------------------------
Life of fund 78.55 70.15 66.84 66.84 65.11 65.11 72.41 66.81
Annual average 6.19 5.66 5.45 5.45 5.33 5.33 5.81 5.45
------------------------------------------------------------------------------
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. See first
page of performance section for performance calculation method.
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 C shares are not subject to an initial sales charge and are
subject to a contingent deferred sales charge only if the shares are
redeemed during the first year.
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 or class C shares and assumes redemption at
the end of the period. Your fund's class B 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. The CDSC for class C shares is
1% for one year after purchase.
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 assumes reinvestment of all the
distributions and interest payments and does not take into account
brokerage fees or taxes. Securities in the fund do not match those in
the index and performance 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.
THE PUTNAM FAMILY OF FUNDS
The following is a complete list of Putnam's open-end mutual funds.
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.
GROWTH FUNDS
Asia Pacific Growth Fund
Capital Appreciation Fund
Capital Opportunities Fund
Europe Growth Fund
Global Equity Fund
Global Growth Fund
Global Natural Resources Fund
Growth Opportunities Fund
Health Sciences Trust
International Growth Fund
International New Opportunities Fund
Investors Fund
New Century Growth Fund
New Opportunities Fund
OTC & Emerging Growth Fund
Research Fund
Tax Smart Equity Fund
Vista Fund
Voyager Fund
Voyager Fund II
GROWTH AND INCOME FUNDS
Balanced Retirement Fund
Classic Equity Fund *
Convertible Income-Growth Trust
Equity Income Fund
The George Putnam Fund of Boston
Global Growth and Income Fund
The Putnam Fund for Growth and Income
International Growth and Income Fund
New Value Fund
Small Cap Value Fund
Utilities Growth and Income Fund
INCOME FUNDS
American Government Income Fund
Diversified Income Trust
Global Governmental Income Trust
High Yield Advantage Fund [DBL. DAGGER]
High Yield Trust [DBL. DAGGER]
High Yield Trust II
Income Fund
Intermediate U.S. Government Income Fund
Money Market Fund **
Preferred Income Fund
Strategic Income Fund
U.S. Government Income Trust
TAX-FREE INCOME FUNDS
Municipal Income Fund
Tax Exempt Income Fund
Tax Exempt Money Market 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
State tax-free money market funds [SECTION MARK] **
California, New York
ASSET ALLOCATION 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
* Formerly Putnam Growth and Income Fund II
[DBL. DAGGER] Closed to new investors. Some exceptions may apply.
Contact Putnam for details.
[SECTION MARK] Not available in all states.
** An investment in a money market fund is not insured or guaranteed
by the Federal Deposit Insurance Corporation or any other
government agency. Although the funds seek to preserve your
investment at $1.00 per share, it is possible to lose money by
investing in the fund.
Check your account balances and current performance at www.putnaminv.com.
A GUIDE TO THE FINANCIAL STATEMENTS
These sections of the report constitute the fund's financial statements.
The fund's portfolio lists all the fund's investments and their values
as of the last day of the reporting period. Holdings are organized by
asset type and industry sector, country, or state to show areas of
concentration and diversification.
Statement of assets and liabilities shows how the fund's net assets and
share price are determined. All investment and noninvestment assets are
added together. Any unpaid expenses and other liabilities are
subtracted from this total. The result is divided by the number of
shares to determine the net asset value per share, which is calculated
separately for each class of shares. (For funds with preferred shares,
the amount subtracted from total assets includes the net assets
allocated to remarketed preferred shares.)
Statement of operations shows the fund's net investment gain or loss
for the reporting period. This is determined by adding up all the fund's
earnings -- from dividends and interest income -- and subtracting its
operating expenses. This statement also lists any net gain or loss the
fund realized on the sales of its holdings and -- for holdings that
remain in the portfolio -- any change in unrealized gains or losses over
the period.
Statement of changes in net assets shows how the fund's net assets were
affected by distributions to shareholders and by changes in the number
of the fund's shares. It lists distributions and their sources (net
investment income or realized capital gains) over the current reporting
period and the most recent fiscal year-end. The distributions listed
here may not match the sources listed in the Statement of operations
because the distributions are determined on a tax basis and may be paid
in a different period from the one in which they were earned.
Financial highlights provide an overview of the fund's investment
results, per-share distributions, expense ratios, net investment income
ratios and portfolio turnover in one summary table, reflecting the five
most recent reporting periods. In a semiannual report, the highlight
table also includes the current reporting period. For open-end funds, a
separate table is provided for each share class.
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THE FUND'S PORTFOLIO
May 31, 2000 (Unaudited)
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
MUNICIPAL BONDS AND NOTES (97.9%) (a)
PRINCIPAL AMOUNT RATING (RAT) VALUE
<S> <C> <C> <C>
New York (95.4%)
-------------------------------------------------------------------------------------------------------------------
$ 1,460,000 Albany, Indl. Dev. Agcy. Fac. Rev. Bonds
(Albany Med. Ctr.), 6s, 5/1/29 (SEG) BB+/P $ 1,200,850
3,400,000 Battery Park, City Auth. Rev. Bonds, Ser. A,
AMBAC, 5 1/2s, 11/1/16 Aaa 3,285,250
2,000,000 Chautauqua Cnty., Indl. Dev. Agcy. Rev. Bonds
(Womans Christian Assn.), Ser. A, 6.4s, 11/15/29 B+/P 1,635,000
5,000,000 Erie Cnty., Indl. Dev. Life Care Cmnty. Rev. Bonds
(Episcopal Church Home), Ser. A, 6s, 2/1/28 B+/P 4,012,500
2,250,000 Essex Cnty., Indl. Dev. Agcy. Rev. Bonds
(Intl. Paper Co.), Ser. A, 6.15s, 4/1/21 Baa1 2,109,375
2,000,000 Huntington, Hsg. Auth. Sr. Hsg. Fac. Rev. Bonds
(Gurwin Jewish Sr. Residences), Ser. A, 6s, 5/1/29 B+/P 1,605,000
2,410,000 Ithaca, Hsg. Corp. Mtge. Rev. Bonds
(Eddygate Park Apts.), 9s, 6/1/06 BBB+/P 2,422,050
2,650,000 Jefferson Cnty., Indl. Dev. Agcy. Solid Waste Disp.
Rev. Bonds (Champion Intl. Corp.), 7.2s, 12/1/20 Baa1 2,703,000
1,360,000 Lockport, Hsg. Dev. Corp. Rev. Bonds
(Urban Pk. Towers), Ser. A, 6s, 10/1/18 Baa2 1,310,700
5,000,000 Long Island, Pwr. Auth. NY Elec. Syst. IFB, 6.761s,
12/1/24 (acquired 5/19/98, cost $5,435,000) (RES) A-/P 4,368,750
5,000,000 Long Island, Pwr. Auth. NY Elec. Syst. FRB,
Ser. 65, MBIA, 5.62s, 4/1/12 (acquired 11/3/98,
cost $5,422,100) (RES) AAA 4,412,500
2,500,000 Metropolitan Trans. Auth. Dedicated Tax Fund
Rev. Bonds, Ser. A, MBIA, 6 1/4s, 4/1/11 Aaa 2,668,750
1,000,000 Mount Vernon, Indl. Dev. Agcy. Fac. Rev. Bonds
(Wartburg Senior Hsg., Inc.-Meadowview),
6.2s, 6/1/29 B+/P 841,250
Nassau Cnty., G.O. Bonds, Ser. A, FGIC
1,000,000 6s, 7/1/13 Aaa 1,027,500
2,300,000 6s, 7/1/11 Aaa 2,374,750
5,000,000 Niagara Falls, City Schl. Dist. FRB, 5 7/8s, 6/15/19 Baa3 4,712,500
NY City, G.O. Bonds
1,680,000 Ser. D, 8 1/4s, 8/1/11 Aaa 1,768,200
300,000 Ser. B, 8 1/4s, 6/1/05 A3 337,125
95,000 Ser. E, 7.6s, 2/1/05 A3 100,463
3,360,000 Ser. E, 7.6s, 2/1/05, Prerefunded A3 3,549,000
45,000 Ser. F, 7.6s, 2/1/05 A3 47,588
1,800,000 Ser. H, 6s, 8/1/17 A3 1,800,000
2,750,000 Ser. J, 6s, 8/1/17 A3 2,750,000
2,000,000 Ser. I, 5 7/8s, 3/15/14 A3 2,005,000
1,000,000 NY City, G.O. IFB, AMBAC, 6.82s, 9/1/11 Aaa 1,038,750
NY City, Indl. Dev. Agcy. Civic Fac. Rev. Bonds
7,905,000 (Parking Corp.), 8 1/2s, 12/30/22 B+/P 8,487,994
1,750,000 (The Lighthouse, Inc.), 6 1/2s, 7/1/22 Aa2 1,837,500
NY City, Indl. Dev. Agcy. Rev. Bonds
5,000,000 (Visy Paper Inc.), 7.95s, 1/1/28 B/P 5,106,250
5,000,000 (Brooklyn Navy Yard Cogen. Partners),
6.2s, 10/1/22 Baa3 4,656,250
1,250,000 (Field Hotel Assoc.), 6s, 11/1/28 B/P 1,053,125
1,440,000 (Brooklyn Navy Yard Cogen. Partners),
5.65s, 10/1/28 Baa3 1,216,800
NY City, Indl. Dev. Agcy. Special Fac. Rev. Bonds
4,000,000 (American Airlines, Inc.), 6.9s, 8/1/24 Baa1 4,065,000
1,250,000 (British Airways), 5 1/4s, 12/1/32 A2 1,023,438
NY City, Muni. Wtr. & Swr. Fin. Auth. Rev. Bonds
5,000,000 MBIA, 6.82s, 6/15/13 Aaa 4,650,000
5,000,000 FGIC, Ser. A, 4 3/4s, 6/15/31 Aaa 3,981,250
1,000,000 NY City, Transitional Fin. Auth. Rev. Bonds, Ser. C,
5s, 5/1/26 Aa3 850,000
NY State Dorm. Auth. Rev. Bonds
170,000 (City U.), Ser. D, 8 3/4s, 7/1/03 A- 186,363
835,000 (NY Dept of Ed.), 7 3/4s, 7/1/21 Baa1 877,168
5,000,000 (State U. Edl. Fac.), Ser. A, 7 1/2s, 5/15/13 A3 5,800,000
485,000 (Wildwood School), 7.3s, 7/1/15 AAA/P 507,242
2,050,000 (Our Lady Of Mercy), FHA Insd., 6.3s, 8/1/32 Aaa 2,093,563
1,340,000 (Schls PG - Issue 2), Ser. E, AMBAC,
5 3/4s, 7/1/19 AAA 1,313,200
2,650,000 (City U. Syst.), Ser. A, FGIC, 5 3/4s, 7/1/09 AAA 2,706,313
1,310,000 (Mental Hlth. Svcs. Fac.), Ser. B, MBIA,
5 3/4s, 7/1/09 Aaa 1,347,663
5,000,000 (Hlth. Facs.), Ser. 1, 4 3/4s, 1/15/29 Aaa 3,956,250
4,000,000 (St. John's U.), MBIA, 4 3/4s, 7/1/28 Aaa 3,215,000
725,000 (State U. Edl. Fac.), Ser. B, zero %, 5/15/09 A 435,906
NY State Energy Res. & Dev. Auth. Elec. Fac.
Rev. Bonds (Long Island Ltg. Co.)
530,000 Ser. A, 7.15s, 12/1/20 Aaa 545,900
1,185,000 Ser. A, 7.15s, 6/1/20 A1 1,220,550
420,000 Ser. A, 7.15s, 6/1/20, Prerefunded A- 443,625
160,000 Ser. B, 7.15s, 9/1/19 Aa1 165,000
70,000 Ser. B, 7.15s, 9/1/19, Prerefunded A- 73,938
NY State Energy Res. & Dev. Auth. Gas Fac. IFB
(Brooklyn Union Gas Co.)
2,000,000 Ser. B, 8.429s, 7/1/26 A2 2,232,500
3,500,000 7.869s, 4/1/20 A2 3,736,250
NY State Energy Res. & Dev. Auth.
Poll. Control Rev. Bonds
1,750,000 (Niagra Mohawk Pwr. Corp.), Ser. A, FGIC,
7.2s, 7/1/29 Aaa 1,898,750
1,000,000 (Long Island Ltg. Co.), Ser. B, 5.15s, 3/1/16 A- 890,000
NY State Env. Fac. Corp. Poll. Control Rev. Bonds
1,000,000 Ser. B, 7 1/2s, 3/15/11 Aa2 1,011,600
210,000 7s, 6/15/12 Aaa 218,488
2,720,000 (State Wtr. Revolving Fund), Ser. A, 5 7/8s, 6/15/14 Aa2 2,754,000
NY State Hsg. Fin. Agcy. Rev. Bonds, Ser. A
50,000 7 1/4s, 9/15/12 A- 52,500
450,000 7 1/4s, 9/15/12, Prerefunded Aaa 476,438
NY State Med. Care Fac. Fin. Agcy. Rev. Bonds
120,000 (Mental Hlth. Svcs. Fac.), Ser. B, 7 7/8s, 8/15/08 A3 123,030
275,000 (Mental Hlth. Svcs. Fac.), Ser. B, 7 7/8s, 8/15/08,
Prerefunded Aaa 282,156
40,000 (Mental Hlth. Svcs. Fac.), Ser. A, 7.8s, 2/15/19 A3 40,596
85,000 (Mental Hlth. Svcs. Fac.), Ser. A, 7 1/2s, 2/15/21 A3 87,799
145,000 (Mental Hlth. Svcs. Fac.), Ser. A, 7 1/2s, 2/15/21,
Prerefunded Aaa 150,638
205,000 (Mental Hlth. Svcs. Fac.), Ser. D, 7.4s, 2/15/18 A3 215,250
510,000 (Mental Hlth. Svcs. Fac.), Ser. D, 7.4s, 2/15/18,
Prerefunded A3 539,963
5,750,000 (North Shore U. Hosp.), MBIA, 7.2s, 11/1/20 Aaa 5,922,894
700,000 Ser. D, FHA Insd., 6.6s, 2/15/31 AAA 740,250
4,300,000 NY State Thruway Auth. Hwy. & Bridge Trust Fund
Rev. Bonds, Ser. B, FGIC, 6s, 4/1/14 Aaa 4,515,000
NY State Urban Dev. Corp. Rev. Bonds
1,685,000 (Clarkson Ctr.), 5 1/2s, 1/1/20 A 1,581,794
3,345,000 (Clarkson Ctr.), 5 1/2s, 1/1/15 A 3,232,106
2,000,000 (Syracuse U.), 5 1/2s, 1/1/15 A 1,932,500
5,000,000 (Ctr. for Indl. Innovation), 5 1/2s, 1/1/13 A 4,887,500
1,000,000 (Correctional Fac.-SVC. Contracts), Ser. A,
5s, 1/1/28 A 826,250
1,000,000 Oneida Cnty, Indl. Dev. Agcy. Rev. Bonds
(St. Elizabeth Med.), Ser. A, 5 7/8s, 12/1/29 B+/P 797,500
1,000,000 Onondaga Cnty., Indl. Dev. Agcy. Rev. Bonds
(Solvay Paperboard LLC), 7s, 11/1/30 B+/P 970,000
Port Auth. NY & NJ Rev. Bonds
1,100,000 (Kennedy Intl. Arpt. - 5th Installment)
6 3/4s, 10/1/19 BB/P 1,101,375
1,000,000 (Kennedy Intl. Arpt. - 4th Installment)
6 3/4s, 10/1/11 BB/P 1,018,750
175,000 Cons., Ser. 78, 6 1/2s, 10/15/08 AA- 180,688
2,000,000 Cons., Ser. 83, 6 3/8s, 10/15/17 AA- 2,042,500
4,000,000 FGIC, 5 1/4s, 1/1/14 Aaa 3,790,000
3,350,000 MBIA, 4 3/4s, 1/1/24 Aaa 2,734,438
5,755,000 Port Auth. NY & NJ Special Oblig. Rev. Bonds
(Continental/Eastern Laguardia), 9 1/8s, 12/1/15 Ba2 5,970,813
Suffolk Cnty., Indl. Dev. Agcy. Rev. Bonds
500,000 (Southampton Hosp. Assn.), Ser. B, 7 5/8s, 1/1/30 B-/P 469,375
500,000 (Southampton Hosp. Assn.), Ser. A, 7 1/4s, 1/1/30 B-/P 448,125
2,000,000 (Nissequogue Cogen Partners Fac.),
5 1/2s, 1/1/23 BB+/P 1,655,000
1,410,000 Valley Hlth. Dev. Corp. Mtge. Rev. Bonds, FHA Insd.,
11.3s, 2/1/23 A 1,560,687
----------------
176,988,642
Puerto Rico (2.5%)
-------------------------------------------------------------------------------------------------------------------
4,700,000 Cmnwlth. of PR, Hwy. & Trans. Auth. IFB, Ser. W,
6.461s, 7/1/08 A 4,729,375
-------------------------------------------------------------------------------------------------------------------
Total Investments (cost $193,358,774) (b) $ 181,718,017
-------------------------------------------------------------------------------------------------------------------
(a) Percentages indicated are based on net assets of $185,544,803.
(RAT) The Moody's or Standard & Poor's ratings indicated are believed to
be the most recent ratings available at May 31, 2000 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 May 31, 2000. Securities rated by Putnam are indicated by
"/P" and are not publicly rated.
(b) The aggregate identified cost on a tax basis is $193,358,774,
resulting in gross unrealized appreciation and depreciation of
$1,828,921 and $13,469,678, respectively, or net unrealized depreciation
of $11,640,757.
(RES) Restricted, excluding 144A securities, as to public resale. The
total market value of restricted securities held at May 31, 2000 was
$8,781,250 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 May 31,
2000.
The rates shown on Floating Rate Bonds (FRB) are the current
interest rates shown at May 31, 2000, 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, are
the current interest rates at May 31, 2000.
The fund had the following industry group concentrations greater
than 10% at May 31, 2000 (as a percentage of net assets):
Transportation 18.2%
Education 12.8
Health care 12.7
The fund had the following insurance concentrations greater than
10% at May 31, 2000 (as a percentage of net assets):
MBIA 13.5%
FGIC 10.9
------------------------------------------------------------------------
Futures Contracts Outstanding at May 31, 2000 (Unaudited)
Aggregate Face Expiration Unrealized
Total Value Value Date Depreciation
------------------------------------------------------------------------
Muni Bond Index
(Short) $2,790,000 $2,776,973 Sep-00 $(13,027)
------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
May 31, 2000 (Unaudited)
<S> <C>
Assets
-------------------------------------------------------------------------------------------
Investments in securities, at value
(identified cost $193,358,774) (Note 1) $181,718,017
-------------------------------------------------------------------------------------------
Cash 653,803
-------------------------------------------------------------------------------------------
Interest and other receivables 3,987,064
-------------------------------------------------------------------------------------------
Receivable for shares of the fund sold 188,883
-------------------------------------------------------------------------------------------
Receivable for securities sold 65,000
-------------------------------------------------------------------------------------------
Total assets 186,612,767
Liabilities
-------------------------------------------------------------------------------------------
Payable for variation margin 25,313
-------------------------------------------------------------------------------------------
Distributions payable to shareholders 242,872
-------------------------------------------------------------------------------------------
Payable for shares of the fund repurchased 421,193
-------------------------------------------------------------------------------------------
Payable for compensation of Manager (Note 2) 239,023
-------------------------------------------------------------------------------------------
Payable for investor servicing and custodian fees (Note 2) 15,157
-------------------------------------------------------------------------------------------
Payable for compensation of Trustees (Note 2) 14,248
-------------------------------------------------------------------------------------------
Payable for administrative services (Note 2) 1,018
-------------------------------------------------------------------------------------------
Payable for distribution fees (Note 2) 85,577
-------------------------------------------------------------------------------------------
Other accrued expenses 23,563
-------------------------------------------------------------------------------------------
Total liabilities 1,067,964
-------------------------------------------------------------------------------------------
Net assets $185,544,803
Represented by
-------------------------------------------------------------------------------------------
Paid-in capital (Notes 1 and 4) $199,062,016
-------------------------------------------------------------------------------------------
Undistributed net investment income (Note 1) 309,477
-------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (Note 1) (2,172,906)
-------------------------------------------------------------------------------------------
Net unrealized depreciation of investments (11,653,784)
-------------------------------------------------------------------------------------------
Total -- Representing net assets applicable to
capital shares outstanding $185,544,803
Computation of net asset value and offering price
-------------------------------------------------------------------------------------------
Net asset value and redemption price per class A share
($124,419,059 divided by 15,036,916 shares) $8.27
-------------------------------------------------------------------------------------------
Offering price per class A share (100/95.25 of $8.27)* $8.68
-------------------------------------------------------------------------------------------
Net asset value and offering price per class B share
($58,871,517 divided by 7,122,249 shares)*** $8.27
-------------------------------------------------------------------------------------------
Net asset value and offering price per class C share
($139,795 divided by 16,886 shares)*** $8.28
-------------------------------------------------------------------------------------------
Net asset value and redemption price per class M share
($2,114,432 divided by 255,946 shares) $8.26
-------------------------------------------------------------------------------------------
Offering price per class M share (100/96.75 of $8.26)** $8.54
-------------------------------------------------------------------------------------------
* 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
Six months ended May 31, 2000 (Unaudited)
<S> <C>
Tax exempt interest income: $6,261,057
-------------------------------------------------------------------------------------------
Expenses:
-------------------------------------------------------------------------------------------
Compensation of Manager (Note 2) 487,482
-------------------------------------------------------------------------------------------
Investor servicing and custodian fees (Note 2) 111,540
-------------------------------------------------------------------------------------------
Compensation of Trustees (Note 2) 6,786
-------------------------------------------------------------------------------------------
Administrative services (Note 2) 2,945
-------------------------------------------------------------------------------------------
Distribution fees -- Class A (Note 2) 131,525
-------------------------------------------------------------------------------------------
Distribution fees -- Class B (Note 2) 259,586
-------------------------------------------------------------------------------------------
Distribution fees -- Class C (Note 2) 656
-------------------------------------------------------------------------------------------
Distribution fees -- Class M (Note 2) 5,490
-------------------------------------------------------------------------------------------
Reports to shareholders 6,527
-------------------------------------------------------------------------------------------
Registration fees 75
-------------------------------------------------------------------------------------------
Auditing 16,350
-------------------------------------------------------------------------------------------
Legal 1,228
-------------------------------------------------------------------------------------------
Postage 4,625
-------------------------------------------------------------------------------------------
Other 12,871
-------------------------------------------------------------------------------------------
Total expenses 1,047,686
-------------------------------------------------------------------------------------------
Expense reduction (Note 2) (38,145)
-------------------------------------------------------------------------------------------
Net expenses 1,009,541
-------------------------------------------------------------------------------------------
Net investment income 5,251,516
-------------------------------------------------------------------------------------------
Net realized loss on investments (Notes 1 and 3) (804,382)
-------------------------------------------------------------------------------------------
Net realized gain on futures contracts (Note 1) 11,928
-------------------------------------------------------------------------------------------
Net unrealized depreciation of investments and futures during the period (5,026,820)
-------------------------------------------------------------------------------------------
Net loss on investments (5,819,274)
-------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (567,758)
-------------------------------------------------------------------------------------------
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
May 31 November 30
2000* 1999
--------------------------------------------------------------------------------------------------
<S> <C> <C>
Decrease in net assets
--------------------------------------------------------------------------------------------------
Operations:
--------------------------------------------------------------------------------------------------
Net investment income $ 5,251,516 $ 11,189,794
--------------------------------------------------------------------------------------------------
Net realized loss on investments (792,454) (103,728)
--------------------------------------------------------------------------------------------------
Net unrealized depreciation of investments (5,026,820) (16,900,497)
--------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations (567,758) (5,814,431)
--------------------------------------------------------------------------------------------------
Distributions to shareholders:
--------------------------------------------------------------------------------------------------
From net investment income
Class A (3,693,934) (7,664,985)
--------------------------------------------------------------------------------------------------
Class B (1,510,043) (2,901,984)
--------------------------------------------------------------------------------------------------
Class C (2,335) (1,637)
--------------------------------------------------------------------------------------------------
Class M (58,421) (112,531)
--------------------------------------------------------------------------------------------------
From net realized gain on investments
Class A -- (345,787)
--------------------------------------------------------------------------------------------------
Class B -- (148,896)
--------------------------------------------------------------------------------------------------
Class M -- (5,390)
--------------------------------------------------------------------------------------------------
In excess of net realized gain on investments
Class A -- (99,254)
--------------------------------------------------------------------------------------------------
Class B -- (42,739)
--------------------------------------------------------------------------------------------------
Class M -- (1,548)
--------------------------------------------------------------------------------------------------
Decrease from capital share transactions (Note 4) (18,782,924) (10,586,921)
--------------------------------------------------------------------------------------------------
Total decrease in net assets (24,615,415) (27,726,103)
Net assets
--------------------------------------------------------------------------------------------------
Beginning of period 210,160,218 237,886,321
--------------------------------------------------------------------------------------------------
End of period (including undistributed
net investment income of $309,477 and
$322,694, respectively) $185,544,803 $210,160,218
--------------------------------------------------------------------------------------------------
* 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 Two months
Per-share May 31 Year ended ended Year ended
operating performance (Unaudited) Nov. 30 Nov. 30+ September 30
------------------------------------------------------------------------------------------------
2000 1999 1998 1998 1997
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $8.52 $9.19 $9.27 $9.10 $8.87
------------------------------------------------------------------------------------------------
Investment operations
------------------------------------------------------------------------------------------------
Net investment income .23 .46 .07 .46 .49
------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments (.25) (.66) (.08) .21 .23
------------------------------------------------------------------------------------------------
Total from
investment operations (.02) (.20) (.01) .67 .72
------------------------------------------------------------------------------------------------
Less distributions:
------------------------------------------------------------------------------------------------
From net
investment income (.23) (.44) (.07) (.47) (.49)
------------------------------------------------------------------------------------------------
From net realized gain
on investments -- (.02) -- (.03) --
------------------------------------------------------------------------------------------------
In excess of net realized
gain on investments -- (.01) -- -- --
------------------------------------------------------------------------------------------------
Total distributions (.23) (.47) (.07) (.50) (.49)
------------------------------------------------------------------------------------------------
Net asset value,
end of period $8.27 $8.52 $9.19 $9.27 $9.10
------------------------------------------------------------------------------------------------
Ratios and supplemental data
------------------------------------------------------------------------------------------------
Total return at
net asset value (%)(a) (.17)* (2.33) (.07)* 7.55 8.33
------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $124,419 $142,299 $166,816 $168,032 $165,993
------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(b) .43* .93 .17* 1.00 .96
------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (%) 2.80* 5.13 .79* 5.00 5.42
------------------------------------------------------------------------------------------------
Portfolio turnover (%) .26* 9.36 9.22* 42.76 117.00
------------------------------------------------------------------------------------------------
+ The fiscal year end has advanced from September 30 to November 30.
++ Commencement of operations.
* Not annualized.
(a) Total return assumes dividend reinvestment and does not reflect
the effect of sales charges.
(b) Includes amounts paid through expense offset arrangements (Note 2).
<CAPTION>
CLASS A (continued)
---------------------------------------------------------
Per-share Year ended
operating performance September 30
---------------------------------------------------------
1996 1995
---------------------------------------------------------
<S> <C> <C>
Net asset value,
beginning of period $8.80 $8.48
---------------------------------------------------------
Investment operations
---------------------------------------------------------
Net investment income .49 .52
---------------------------------------------------------
Net realized and unrealized
gain (loss) on investments .07 .32
---------------------------------------------------------
Total from
investment operations .56 .84
---------------------------------------------------------
Less distributions:
---------------------------------------------------------
From net
investment income (.49) (.52)
---------------------------------------------------------
From net realized gain
on investments -- --
---------------------------------------------------------
In excess of net realized
gain on investments -- --
---------------------------------------------------------
Total distributions (.49) (.52)
---------------------------------------------------------
Net asset value,
end of period $8.87 $8.80
---------------------------------------------------------
Ratios and supplemental data
---------------------------------------------------------
Total return at
net asset value (%)(a) 6.48 10.27
---------------------------------------------------------
Net assets, end of period
(in thousands) $172,170 $175,210
---------------------------------------------------------
Ratio of expenses to
average net assets (%)(b) 1.00 1.01
---------------------------------------------------------
Ratio of net investment income
to average net assets (%) 5.53 6.12
---------------------------------------------------------
Portfolio turnover (%) 270.34 120.38
---------------------------------------------------------
+ The fiscal year end has advanced from September 30 to November 30.
++ Commencement of operations.
* Not annualized.
(a) Total return assumes dividend reinvestment and does not reflect
the effect of sales charges.
(b) Includes amounts paid through expense offset arrangements (Note 2).
</TABLE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
CLASS B
------------------------------------------------------------------------------------------------
Six months
ended Two months
Per-share May 31 Year ended ended Year ended
operating performance (Unaudited) Nov. 30 Nov. 30+ September 30
------------------------------------------------------------------------------------------------
2000 1999 1998 1998 1997
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $8.51 $9.19 $9.26 $9.09 $8.86
------------------------------------------------------------------------------------------------
Investment operations
------------------------------------------------------------------------------------------------
Net investment income .21 .40 .06 .40 .43
------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments (.24) (.67) (.07) .21 .23
------------------------------------------------------------------------------------------------
Total from
investment operations (.03) (.27) (.01) .61 .66
------------------------------------------------------------------------------------------------
Less distributions:
------------------------------------------------------------------------------------------------
From net
investment income (.21) (.38) (.06) (.41) (.43)
------------------------------------------------------------------------------------------------
From net realized gain
on investments -- (.02) -- (.03) --
------------------------------------------------------------------------------------------------
In excess of net realized
gain on investments -- (.01) -- -- --
------------------------------------------------------------------------------------------------
Total distributions (.21) (.41) (.06) (.44) (.43)
------------------------------------------------------------------------------------------------
Net asset value,
end of period $8.27 $8.51 $9.19 $9.26 $9.09
------------------------------------------------------------------------------------------------
Ratios and supplemental data
------------------------------------------------------------------------------------------------
Total return at
net asset value (%)(a) (.38)* (3.08) (.07)* 6.86 7.63
------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $58,872 $65,168 $68,513 $68,547 $56,244
------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(b) .76* 1.58 .28* 1.65 1.61
------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (%) 2.47* 4.48 .68* 4.36 4.76
------------------------------------------------------------------------------------------------
Portfolio turnover (%) .26* 9.36 9.22* 42.76 117.00
------------------------------------------------------------------------------------------------
+ The fiscal year end has advanced from September 30 to November 30.
++ Commencement of operations.
* Not annualized.
(a) Total return assumes dividend reinvestment and does not reflect
the effect of sales charges.
(b) Includes amounts paid through expense offset arrangements (Note 2).
<CAPTION>
CLASS B (continued)
---------------------------------------------------------
Per-share Year ended
operating performance September 30
---------------------------------------------------------
1996 1995
---------------------------------------------------------
<S> <C> <C>
Net asset value,
beginning of period $8.79 $8.48
---------------------------------------------------------
Investment operations
---------------------------------------------------------
Net investment income .43 .47
---------------------------------------------------------
Net realized and unrealized
gain (loss) on investments .07 .31
---------------------------------------------------------
Total from
investment operations .50 .78
---------------------------------------------------------
Less distributions:
---------------------------------------------------------
From net
investment income (.43) (.47)
---------------------------------------------------------
From net realized gain
on investments -- --
---------------------------------------------------------
In excess of net realized
gain on investments -- --
---------------------------------------------------------
Total distributions (.43) (.47)
---------------------------------------------------------
Net asset value,
end of period $8.86 $8.79
---------------------------------------------------------
Ratios and supplemental data
---------------------------------------------------------
Total return at
net asset value (%)(a) 5.78 9.46
---------------------------------------------------------
Net assets, end of period
(in thousands) $41,795 $24,259
---------------------------------------------------------
Ratio of expenses to
average net assets (%)(b) 1.66 1.65
---------------------------------------------------------
Ratio of net investment income
to average net assets (%) 4.83 5.28
---------------------------------------------------------
Portfolio turnover (%) 270.34 120.38
---------------------------------------------------------
+ The fiscal year end has advanced from September 30 to November 30.
++ Commencement of operations.
* Not annualized.
(a) Total return assumes dividend reinvestment and does not reflect
the effect of sales charges.
(b) Includes amounts paid through expense offset arrangements (Note 2).
</TABLE>
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
CLASS C
------------------------------------------------------------------
Six months
ended For the period
Per-share May 31 July 26, 1999++
operating performance (Unaudited) to Nov. 30
------------------------------------------------------------------
2000 1999
------------------------------------------------------------------
Net asset value,
beginning of period $8.52 $8.87
------------------------------------------------------------------
Investment operations
------------------------------------------------------------------
Net investment income .20 .14
------------------------------------------------------------------
Net realized and unrealized
loss on investments (.24) (.35)
------------------------------------------------------------------
Total from
investment operations (.04) (.21)
------------------------------------------------------------------
Less distributions:
------------------------------------------------------------------
From net
investment income (.20) (.14)
------------------------------------------------------------------
From net realized gain
on investments -- --
------------------------------------------------------------------
In excess of net realized
gain on investments -- --
------------------------------------------------------------------
Total distributions (.20) (.14)
------------------------------------------------------------------
Net asset value,
end of period $8.28 $8.52
------------------------------------------------------------------
Ratios and supplemental data
------------------------------------------------------------------
Total return at
net asset value (%)(a) (.45)* (2.39)*
------------------------------------------------------------------
Net assets, end of period
(in thousands) $140 $247
------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(b) .83* .61*
------------------------------------------------------------------
Ratio of net investment income
to average net assets (%) 2.38* 1.64*
------------------------------------------------------------------
Portfolio turnover (%) .26* 9.36
------------------------------------------------------------------
+ The fiscal year end has advanced from September 30 to November 30.
++ Commencement of operations.
* Not annualized.
(a) Total return assumes dividend reinvestment and does not reflect
the effect of sales charges.
(b) Includes amounts paid through expense offset arrangements (Note 2).
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
CLASS M
------------------------------------------------------------------------------------------------
Six months
ended Two months
Per-share May 31 Year ended ended Year ended
operating performance (Unaudited) Nov. 30 Nov. 30+ September 30
------------------------------------------------------------------------------------------------
2000 1999 1998 1998 1997
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $8.51 $9.18 $9.25 $9.08 $8.86
------------------------------------------------------------------------------------------------
Investment operations
------------------------------------------------------------------------------------------------
Net investment income .22 .43 .07 .43 .46
------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments (.25) (.66) (.07) .21 .22
------------------------------------------------------------------------------------------------
Total from
investment operations (.03) (.23) -- .64 .68
------------------------------------------------------------------------------------------------
Less distributions:
------------------------------------------------------------------------------------------------
From net
investment income (.22) (.41) (.07) (.44) (.46)
------------------------------------------------------------------------------------------------
From net realized gain
on investments -- (.02) -- (.03) --
------------------------------------------------------------------------------------------------
In excess of net realized
gain on investments -- (.01) -- -- --
------------------------------------------------------------------------------------------------
Total distributions (.22) (.44) (.07) (.47) (.46)
------------------------------------------------------------------------------------------------
Net asset value,
end of period $8.26 $8.51 $9.18 $9.25 $9.08
------------------------------------------------------------------------------------------------
Ratios and supplemental data
------------------------------------------------------------------------------------------------
Total return at
net asset value (%)(a) (.33)* (2.64) (.01)* 7.23 7.89
------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $2,114 $2,447 $2,558 $2,433 $2,365
------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(b) .58* 1.23 .22* 1.30 1.26
------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (%) 2.65* 4.84 .74* 4.71 5.09
------------------------------------------------------------------------------------------------
Portfolio turnover (%) .26* 9.36 9.22* 42.76 117.00
------------------------------------------------------------------------------------------------
+ The fiscal year end has advanced from September 30 to November 30.
++ Commencement of operations.
* Not annualized.
(a) Total return assumes dividend reinvestment and does not reflect
the effect of sales charges.
(b) Includes amounts paid through expense offset arrangements (Note 2).
<CAPTION>
CLASS M (continued)
---------------------------------------------------------------------
For the
Year period
Per-share ended Feb. 10, 1995++
operating performance Sept. 30 to Sept. 30
---------------------------------------------------------------------
1996 1995
---------------------------------------------------------------------
<S> <C> <C>
Net asset value,
beginning of period $8.79 $8.51
---------------------------------------------------------------------
Investment operations
---------------------------------------------------------------------
Net investment income .47 .31
---------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments .06 .29
---------------------------------------------------------------------
Total from
investment operations .53 .60
---------------------------------------------------------------------
Less distributions:
---------------------------------------------------------------------
From net
investment income (.46) (.32)
---------------------------------------------------------------------
From net realized gain
on investments -- --
---------------------------------------------------------------------
In excess of net realized
gain on investments -- --
---------------------------------------------------------------------
Total distributions (.46) (.32)
---------------------------------------------------------------------
Net asset value,
end of period $8.86 $8.79
---------------------------------------------------------------------
Ratios and supplemental data
---------------------------------------------------------------------
Total return at
net asset value (%)(a) 6.15 7.11*
---------------------------------------------------------------------
Net assets, end of period
(in thousands) $1,492 $299
---------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(b) 1.30 .83*
---------------------------------------------------------------------
Ratio of net investment income
to average net assets (%) 5.03 3.21*
---------------------------------------------------------------------
Portfolio turnover (%) 270.34 120.38
---------------------------------------------------------------------
+ The fiscal year end has advanced from September 30 to November 30.
++ Commencement of operations.
* Not annualized.
(a) Total return assumes dividend reinvestment and does not reflect
the effect of sales charges.
(b) Includes amounts paid through expense offset arrangements (Note 2).
</TABLE>
NOTES TO FINANCIAL STATEMENTS
May 31, 2000 (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 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 is
consistent with preservation of capital.
The fund offers class A, class B, class C 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 C shares have a higher ongoing distribution fee than
class B shares and have a one-year 1.00% contingent deferred sales
charge and do not convert to Class A shares. Class M shares are sold
with a maximum front end sales charge of 3.25% and pay an ongoing
distribution fee that is higher than class A shares but lower than class
B and class C 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 that 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 of the financial statements and the reported
amounts of increases and decreases in net assets from operations during
the reporting period. 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.
Restricted securities are stated at fair value following procedures
approved by the Trustees. Such valuations and procedures are reviewed
periodically by the Trustees.
B) Security transactions and related investment income Security
transactions are accounted for on the trade date (date the order to buy
or sell is executed). Gains or losses on securities sold are determined
on the identified cost basis.
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 maintains an asset coverage ratio of at least 300% and
borrowings must not exceed prospectus limitations. For the six months
ended May 31, 2000, 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 paid 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.
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 and original issue discount bonds 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 lesser of (i) an annual rate of 0.50%
of the average net assets of the fund or (ii) 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. Prior to July 1, 1999, the management fee was
based on (ii) above.
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 six months ended May 31, 2000, fund expenses were reduced by
$38,145 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.
Each Trustee of the fund receives an annual Trustee fee, of which $615
has been allocated to the fund and an additional fee for each Trustees
meeting attended. 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
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 a 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, class C 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 Retail Management, Inc., 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 Retail Management, Inc. at an annual rate up to
0.35%, 1.00%, 1.00% and 1.00% of the average net assets attributable to
class A, class B, class C and class M shares, respectively. The Trustees
have approved payment by the fund at an annual rate of 0.20%, 0.85%,
1.00% and 0.50% of the average net assets attributable to class A, class
B, class C and class M shares, respectively.
For the six months ended May 31, 2000, Putnam Retail Management, Inc.,
acting as underwriter received net commissions of $3,462 and $70 from
the sale of class A and class M shares, respectively, and received $99,737
and $36 in contingent deferred sales charges from redemptions of class B
and class C shares, respectively. A deferred sales charge of up to 1% is
assessed on certain redemptions of class A shares. For the six months
ended May 31, 2000, Putnam Retail Management, Inc., acting as underwriter
received $2,889 on class A redemptions.
Note 3
Purchases and sales of securities
During the six months ended May 31, 2000, cost of purchases and proceeds
from sales of investment securities other than short-term investments
aggregated $492,750 and $17,657,498, respectively. There were no purchases
and sales of U.S. government obligations.
Note 4
Capital shares
At May 31, 2000, there was an unlimited number of shares of beneficial
interest authorized. Transactions in capital shares were as follows:
Six months ended May 31. 2000
---------------------------------------------------------------------------
Class A Shares Amount
---------------------------------------------------------------------------
Shares sold 665,939 $ 5,570,802
---------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 227,449 1,897,647
---------------------------------------------------------------------------
893,388 7,468,449
Shares
repurchased (2,560,929) (21,411,804)
---------------------------------------------------------------------------
Net decrease (1,667,541) $(13,943,355)
---------------------------------------------------------------------------
Year ended November 30, 1999
---------------------------------------------------------------------------
Class A Shares Amount
---------------------------------------------------------------------------
Shares sold 2,013,661 $ 17,941,676
---------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 395,646 3,525,717
---------------------------------------------------------------------------
2,409,307 21,467,393
Shares
repurchased (3,849,127) (34,234,400)
---------------------------------------------------------------------------
Net decrease (1,439,820) $(12,767,007)
---------------------------------------------------------------------------
Six months ended May 31. 2000
---------------------------------------------------------------------------
Class B Shares Amount
---------------------------------------------------------------------------
Shares sold 489,530 $ 4,098,634
---------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 105,313 878,672
---------------------------------------------------------------------------
594,843 4,977,306
Shares
repurchased (1,129,009) (9,443,878)
---------------------------------------------------------------------------
Net decrease (534,166) $(4,466,572)
---------------------------------------------------------------------------
Year ended November 30, 1999
---------------------------------------------------------------------------
Class B Shares Amount
---------------------------------------------------------------------------
Shares sold 1,328,071 $11,869,134
---------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 207,323 1,842,898
---------------------------------------------------------------------------
1,535,394 13,712,032
Shares
repurchased (1,337,573) (11,857,962)
---------------------------------------------------------------------------
Net increase 197,821 $ 1,854,070
---------------------------------------------------------------------------
Six months ended May 31. 2000
---------------------------------------------------------------------------
Class C Shares Amount
---------------------------------------------------------------------------
Shares sold 12,656 $ 105,463
---------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 231 1,928
---------------------------------------------------------------------------
12,887 107,391
Shares
repurchased (24,960) (213,857)
---------------------------------------------------------------------------
Net decrease (12,073) $(106,466)
---------------------------------------------------------------------------
For the period July 26, 1999
(commencement of operations) to
November 30, 1999
---------------------------------------------------------------------------
Class C Shares Amount
---------------------------------------------------------------------------
Shares sold 28,934 $248,242
---------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 25 213
---------------------------------------------------------------------------
28,959 248,455
Shares
repurchased -- --
---------------------------------------------------------------------------
Net increase 28,959 $248,455
---------------------------------------------------------------------------
Six months ended May 31. 2000
---------------------------------------------------------------------------
Class M Shares Amount
---------------------------------------------------------------------------
Shares sold 10,652 $ 89,084
---------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 4,392 36,599
---------------------------------------------------------------------------
15,044 125,683
Shares
repurchased (46,786) (392,214)
---------------------------------------------------------------------------
Net decrease (31,742) $(266,531)
---------------------------------------------------------------------------
Year ended November 30, 1999
---------------------------------------------------------------------------
Class M Shares Amount
---------------------------------------------------------------------------
Shares sold 81,851 $711,159
---------------------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 10,249 91,346
---------------------------------------------------------------------------
92,100 802,505
Shares
repurchased (83,097) (724,944)
---------------------------------------------------------------------------
Net increase 9,003 $ 77,561
---------------------------------------------------------------------------
WELCOME TO WWW.PUTNAMINV.COM
Now you can use your PC to get up-to-date information about your funds,
learn more about investing and retirement planning, and access market
news and economic outlooks from Putnam.
VISIT PUTNAM'S SITE ON THE WORLD WIDE WEB FOR:
* the benefits of investing with Putnam
* Putnam's money management philosophy
* complete fund information, daily pricing and long-term performance
* your current account value, portfolio value and transaction history
* the latest on new funds and other Putnam news
You can also read Putnam economist Dr. Robert Goodman's commentary and
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or objective, use our glossary to decode investment terms . . . and much
more.
The site can be accessed through any of the major online services
(America Online, CompuServe, Prodigy) that offer web access. Of course,
you can also access it via Netscape or Microsoft Internet Explorer,
using an independent Internet service provider.
New features will be added to the site regularly. So be sure to bookmark us at
http://www.putnaminv.com
OUR COMMITMENT TO QUALITY SERVICE
* CHOOSE AWARD-WINNING SERVICE
Putnam Investments has won the DALBAR Service Award 8 times in the past
9 years. In 1997 and 1998, Putnam was the only company to win all three
DALBAR awards: for service to investors, to financial advisors, and to
variable annuity contract holders.*
* HELP YOUR INVESTMENTS GROW
Set up a systematic program for investing with as little as $25 a month
from a Putnam money market fund or from your checking or savings
account.+
* SWITCH FUNDS EASILY
Within the same class of shares, you can move money from one account to
another without a service charge. (This privilege is subject to change
or termination.)
* ACCESS YOUR MONEY QUICKLY
You can get checks sent regularly or redeem shares any business day at
the then-current net asset value, which may be more or less than the
original cost of the shares.
For details about any of these or other services, contact your financial
advisor or call the toll-free number shown below and speak with a
helpful Putnam representative. To learn more about Putnam, visit our Web
site.
www.putnaminv.com
To make an additional investment in this or any other Putnam fund,
contact your financial advisor or call our toll-free number.
1-800-225-1581
* DALBAR, Inc., an independent research firm, presents the awards to financial
services firms that provide consistently excellent service.
+ Regular investing, of course, does not guarantee a profit or protect against
a loss in a declining market.
FUND INFORMATION
WEB SITE
www.putnaminv.com
INVESTMENT MANAGER
Putnam Investment Management, Inc.
One Post Office Square
Boston, MA 02109
MARKETING SERVICES
Putnam Retail Management, Inc.
One Post Office Square
Boston, MA 02109
CUSTODIAN
Putnam Fiduciary Trust Company
LEGAL COUNSEL
Ropes & Gray
TRUSTEES
John A. Hill, 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
George Putnam, III
A.J.C. Smith
W. Thomas Stephens
W. Nicholas Thorndike
OFFICERS
George Putnam, III
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
Stephen Oristaglio
Vice President
Jerome J. Jacobs
Vice President
David E. Hamlin
Vice President and Fund Manager
Richard A. Monaghan
Vice President
Richard G. Leibovitch
Vice President
John R. Verani
Vice President
This report is for the information of shareholders of Putnam New York
Tax Exempt Income Fund. It may also be used as sales literature when
preceded or accompanied by the current prospectus, which gives details
of sales charges, investment objectives, and operating policies of the
fund, 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: 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
---------------------
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INVESTMENTS
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For account balances, economic forecasts, and the latest on Putnam funds, visit
www.putnaminv.com
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