Putnam
Asia Pacific
Growth
Fund
SEMIANNUAL REPORT
March 31, 1996
[LOGO: BOSTON * LONDON * TOKYO]
Fund highlights
* "We believe the Asia Pacific region represents an
exceptional long-term opportunity for investors. The sheer dynamism of
the economies, the vast populations, and the thriving corporations are
all moving Asia to the forefront of the global economy. In turn, we have
positioned Putnam Asia Pacific Growth Fund to take advantage of these
vast potential opportunities."
-- David Thomas, Putnam Asia Pacific Growth Fund Manager
* According to the World Bank, by 2020, 7 of the 10 largest
economies in the world will be in Asia.
CONTENTS
4 Report from Putnam Management
8 Fund performance summary
13 Portfolio holdings
17 Financial statements
[GRAPHIC OMITTED: photo of George Putnam]
(copyright) Karsh, Ottawa
From the Chairman
Dear Shareholder:
U.S. investors looking for equity investment opportunities in Asia and
the Pacific Basin quickly discover the complexities of the undertaking.
It is not surprising that, like you, many of them have turned to Putnam
Asia Pacific Growth Fund. Your fund's management team brings to the task
not only considerable expertise in the area but the ability to provide
ongoing monitoring of both the fund's portfolio and international
developments that might affect performance.
During the six months ended March 31, 1996, investors rushing into the
smaller Asian markets drove up prices and helped boost fund performance.
Some gains were taken back, however, as markets worldwide reacted to the
U.S. economy's unexpected strength, which dashed hopes for further cuts
in interest rates.
Japan remained the portfolio's predominant investment area during the
semiannual period. The Japanese stock market benefited from the yen's
ongoing weakness, while the failure to resolve costly banking problems
generally had a dampening effect. Next quarter's announcements of
corporate profits may underpin continued recovery in that market.
Fund Manager David Thomas discusses performance and prospects in the
report that follows.
Respectfully yours,
/S/George Putnam
George Putnam
Chairman of the Trustees
May 15, 1996
Report from the Fund Manager
David K. Thomas
Over the past several months, stock markets across the Asia Pacific
region have generated sound returns and your fund's performance
reflected this environment. Although the Japanese market posted somewhat
subdued overall returns after a year-long rally in local currency terms,
markets such as Malaysia and Hong Kong enjoyed continuing strength.
For the six months ended March 31, 1996, Putnam Asia Pacific Growth
Fund's class A share performance of 6.10% at net asset value (NAV) was
slightly behind the MSCI Pacific Index, which rose 6.86% over the same
period. (At public offering price, class A shares fell 0.01%). Over
longer periods, your fund has outperformed the index at NAV, as the
results on page 8 show. Results for class B and class M shares can also
be seen on page 8.
* JAPAN'S YEAR-LONG RALLY MODERATES
Measured in yen, the Japanese stock market was very sound throughout
1995, faltering only in the last several months. Corporate profits are
increasing, with many companies appearing in positive fiscal shape.
Retail sales are rising and industrial production is recovering.
Furthermore, by some measures, Japanese stocks appear currently
undervalued compared with U.S. stocks, which means there may be room for
prices to gain in the months ahead.
In spite of this promising backdrop, performance of the Japanese market
has been uninspired over the past several months. Potential defaults on
large housing and business loans are a major factor behind this
country's recent market stagnation. Japanese taxpayers appear to be
resisting a government-sponsored rescue package for the banks that made
these shaky loans. However, we believe this issue will not be enough to
undermine positive developments in the near term. Accordingly, we have
maintained your fund's Japanese holdings, which, as of this report,
stands at 44.8% of the portfolio.
Stocks of Japanese technology companies were generally weak, and we have
been steadily reducing the fund's exposure to this area. Elsewhere among
the fund's Japanese stocks, we are upbeat about the retailer Marui Co.
and the supermarket operator Ito-Yokado Co. Another fund holding, Daiwa
Securities, a securities brokerage, may benefit from Japan's ongoing
economic and financial recovery. While these stocks, along with others
discussed in this report, were viewed favorably at the end of the fiscal
period, all portfolio holdings are subject to review and adjustment in
accordance with the fund's investment strategy and may well vary in the
future.
* HONG KONG POSITION PROVES REWARDING OVER PERIOD
At the end of the semiannual period, over 20% of the fund's assets were
positioned in the Hong Kong stock market. We are cautiously optimistic
about Hong Kong's prospects in the months ahead, but there are some
mixed signals. On the positive side, corporate profits are solid and
growing and, in recent months, China appears to have been consuming more
goods (the Chinese economy heavily affects Hong Kong's). In spite of
this good news, the growth rate of Hong Kong's gross domestic product --
a measure of economic output -- has slowed somewhat.
[GRAPHIC OMITTED: horizontal bar chart ALLOCATIONS BY COUNTRY*
showing:
top bar for each country represents: as of 9/30/95
bottom bar for each country represents: as of 3/31/96
Australia - 2.9%
4.5%
Hong Kong - 14.0%
20.8%
India - 0.5%
0.3%
Indonesia - 5.9%
3.5%
Japan - 45.3%
44.8%
Malaysia - 7.5%
4.4%
Philipines - 1.1%
1.1%
Singapore - 11.6%
10.4%
South Korea - 1.2%
1.7%
Taiwan - 2.2%
0.5%
Thailand - 25.0%
3.1%
Based on net assets as of 3/31/96. Holdings will vary over time.]
Stocks of property companies were leaders in Hong Kong over the period.
Two real estate companies, Amoy Properties and Cheung Kong Holdings,
were particularly strong. We also saw excellent performance from HSBC
Holdings, a financial services company. Finally, one of your fund's
major Hong Kong holdings is Citic Pacific, a large conglomerate. The
company's substantial stake in China's booming infrastructure projects
could lead to strong near-term growth.
The highly developed country of Singapore accounts for just over 10% of
your fund's assets as of this report. However, we have reduced exposure
here somewhat, since several short-term problems exist in spite of a
promising long-term outlook. Profit growth has slowed, and the country's
vital electronics sector has been weak recently. We did see very strong
performance from City Developments, a property firm, and Cycle &
Carriage, a broadly diversified company selling a range of products from
food to motor vehicles.
* SMALLER MARKETS GENERALLY CONTINUE ROBUST
While Australia accounts for a relatively small part of your fund's
holdings -- 4.5%, we are optimistic that its market conditions appear
positive for the coming months. A new, pro-business coalition government
is in power, and we believe the country's corporations are increasingly
competitive.
We are cautious about increasing holdings in Malaysia, particularly
after its strength at the beginning of the year. Inflows from foreign
investors, enticed by Malaysia's high economic growth rate and
profitable companies, helped push the market sharply higher. However,
rising interest rates, coupled with high stock prices, make Malaysia
appear somewhat overvalued. Nonetheless, we remain upbeat about such
fund holdings as Carlsberg Brewery of Malaysia, a successful brewery.
Finally, we have dampened expectations for both the Thai and Indonesian
markets. In Thailand, domestic politics have undermined the stock market
somewhat. Indonesia is struggling under the weight of high interest
rates, which are necessary to keep inflation down. We believe that both
of these markets have excellent long-term potential; we will continue to
evaluate conditions to decide when to increase investments there.
[GRAPHIC OMMITTED: TOP 10 HOLDINGS (3/31/96)
showing:
Sharp Corp. (Japan)
Electronic equipment
Cheung Kong Holdings Ltd. (Hong Kong)
Property developer
Daiwa Securities Co. (Japan)
Financial Services
Marui Co., Ltd. (Japan)
Retailer
Swire Pacific Ltd. (Hong Kong)
Conglomerate
Ito-Yakado (Japan)
Supermarket operator
Hutchison Whampoa, Ltd. (Hong Kong)
Conglomerate
Hong Kong Telecommunications Ltd. (Hong Kong)
Telecommunications services
HSBC Holdings PLC (Hong Kong)
Financial services; banking
Tokio Marine & Fire Insurance Co. (Japan)
Insurer
FOOTNOTE READS: These holdings represent 17.7% of the fund's net assets
as of 3/31/96. Portfolio holdings will vary over time.]
* OUTLOOK: CAUSE FOR CAUTIOUS OPTIMISM
In the next few months, further signs of Japanese economic momentum may
become steadily apparent. More weakening in the yen may also help
Japanese companies, since a falling yen makes their goods and services
less expensive in the crucial export market. Of course, any number of
factors could hamper Japanese stocks, including the loan issue or
disappointing profit figures.
Elsewhere in Asia, economic growth appears robust and corporate profits
strong. This potent combination could push share prices upward in the
months ahead. However, rising U.S. interest rates could possibly hurt
these markets, which are sensitive to U.S. conditions. Whatever the next
few months bring, though, you should bear in mind the potentially bright
future for Asia: its dynamic countries appear poised to lead the world's
economy in the next century.
The views expressed here are exclusively those of Putnam Management.
They are not meant as investment advice. Although the described holdings
were viewed favorably as of 3/31/96, there is no guarantee the fund will
continue to hold these securities in the future. International investing
involves certain risks, including currency fluctuations and political
developments and economic instability.
Performance Summary
Performance should always be considered in light of a fund's investment
strategy. Putnam Asia Pacific Growth Fund is designed for investors
seeking capital appreciation primarily through common stocks and other
securities of companies located in Asia and in the Pacific Basin.
This section provides, at a glance, information about your fund's
performance. Total return shows how the value of the fund's shares
changed over time, assuming you held the shares through the entire
period and reinvested all distributions in the fund.
TOTAL RETURN FOR PERIODS ENDED 3/31/96
Class A Class B Class M
(inception date) (2/20/91) (6/1/93) (2/1/95)
NAV POP NAV CDSC NAV POP
- -----------------------------------------------------------------------
6 months 6.10% -0.01% 5.73% 0.73% 5.96% 2.26%
- -----------------------------------------------------------------------
1 year 11.96 5.48 11.14 6.14 11.48 7.55
- -----------------------------------------------------------------------
5 years 79.54 69.17 -- -- -- --
Annual
average 12.42 11.09 -- -- -- --
- -----------------------------------------------------------------------
Life of
class A 74.10 64.15 -- -- -- --
Annual
average 11.46 10.18 -- -- -- --
- -----------------------------------------------------------------------
Life of
class B -- -- 34.99 31.99 -- --
Annual
average -- -- 11.18 10.30 -- --
- -----------------------------------------------------------------------
Life of
class M -- -- -- -- 15.53 11.48
Annual
average -- -- -- -- 13.25 9.82
- -----------------------------------------------------------------------
COMPARATIVE INDEX RETURNS FOR PERIODS ENDED 3/31/96
MSCI Pacific Consumer
Index Price Index
- -----------------------------------------------------------------------
6 months 6.86% 1.63%
- -----------------------------------------------------------------------
1 year 6.64 2.84
- -----------------------------------------------------------------------
5 years 33.21 15.33
Annual average 5.90 2.89
- -----------------------------------------------------------------------
Life of class A 25.95 15.50
Annual average 4.64 2.86
- -----------------------------------------------------------------------
Life of class B 14.78 7.98
Annual average 4.99 2.75
- -----------------------------------------------------------------------
Life of class M 11.99 3.59
Annual average 10.22 3.09
- -----------------------------------------------------------------------
Performance data represent past results, do not reflect future
performance, and will differ for each share class. They do not take into
account any adjustment for taxes payable on reinvested distributions.
Investment returns and net asset value will fluctuate so that an
investor's shares, when sold, may be worth more or less than their
original cost. POP assumes 5.75% maximum sales charge for class A
shares and 3.50% for class M shares. CDSC for class B shares assumes the
5% maximum contingent deferred sales charge.
PRICE AND DISTRIBUTION INFORMATION
6 months ended 3/31/96
Class A Class B Class M
- --------------------------------------------------------------------
Distributions (number) 1 1 1
- --------------------------------------------------------------------
Income $0.597 $0.511 $0.586
- --------------------------------------------------------------------
Capital gains -- -- --
- --------------------------------------------------------------------
Long-term 0.008 0.008 0.008
- --------------------------------------------------------------------
Total $0.605 $0.519 $0.594
- --------------------------------------------------------------------
Share value: NAV POP NAV NAV POP
- --------------------------------------------------------------------
9/30/95 $13.58 $14.41 $13.37 $13.53 $14.02
- --------------------------------------------------------------------
3/31/96 13.77 14.61 13.59 13.71 14.21
- --------------------------------------------------------------------
TERMS AND DEFINITIONS
Class A shares are generally subject to an initial sales charge.
Class B shares may be subject to a sales charge upon redemption.
Class M shares have a lower initial sales charge and a higher 12b-1 fee
than class A shares and no sales charge on redemption.
Net asset value (NAV) is the value of all your fund's assets, minus any
liabilities, divided by the number of outstanding shares, not including
any initial or contingent deferred sales charge.
Public offering price (POP) is the price of a mutual fund share plus
the maximum sales charge levied at the time of purchase. POP
performance figures shown here assume the maximum 5.75% sales charge for
class A shares and 3.50% for class M shares.
Contingent deferred sales charge (CDSC) is a charge applied at the time
of the redemption of class B shares and assumes redemption at the end of
the period. Your fund's CDSC declines from a 5% maximum during the first
year to 1% during the sixth year. After the sixth year, the CDSC no
longer applies.
COMPARATIVE BENCHMARKS
The Morgan Stanley Capital International Pacific Index (MSCIP) is an
unmanaged list of Asian and Pacific Rim equity securities, excluding
U.S., with all values expressed in U.S. dollars. Performance of the
index reflects changes in market price and reinvestment of distributions
net of withholding taxes and does not take into account brokerage fees
or taxes. The fund's portfolio contains securities that differ from
those in the indexes. Investment in the fund is subject to special
international risks, such as currency fluctuations and political
developments.
Consumer Price Index (CPI) is a commonly used measure of inflation; it
does not represent an investment return.
A Putnam perspective on risk and reward
You've probably been told how important it is to understand the
relationship between an investment's potential rewards and its
accompanying risks. Given the cautionary nature of such
instructions, it may take most investors a while to realize that risk
has a positive side.
Every risk signals a potential reward. Selecting only those investments
that offer the greatest degree of security generally leads to only
modest rewards. Furthermore, even insured or guaranteed investments may
be subject to changes in their rates of return or, in some cases, in
their principal values. Experienced investors know that no investment is
truly risk free and are therefore willing to take on some measure of
risk in order to increase their potential gains.
The greater the risk, the greater the potential reward. Accepting an
appropriate level of investment risk can give you a better chance of
outpacing inflation over time and seeking to maximize your investment's
return. How much risk? Your financial advisor's feedback and your time
horizon can make all the difference in determining how much risk is
compatible with your investment goals and your peace of mind.
* FITTING YOUR FUND SELECTION TO YOUR RISK TOLERANCE
How do you find the right balance between investment risks and their
potential rewards? It's helpful to understand the types of risks that
can apply to different types of investments, and to look at your own
portfolio with this perspective.
For short-term goals, your first priority may be managing market risk.
Longer-term investors may be more concerned with inflation risk. And all
income-oriented investors should consider interest-rate, credit, and
prepayment risks carefully. Within each of Putnam's four investment
categories, you can select funds with differing levels of risk and
reward potential to customize your portfolio.
This list covers only the most general types of risks; however, each
investment will also have its own specific risks. You will find a more
detailed discussion of these risk consideration in each fund's
prospectus.
* A RUNDOWN OF RISK TYPES
MARKET RISK - Most important for stock funds, but relevant to all funds,
this is a measure of how sensitive a fund's holdings are to changes in
general market conditions. Remember, though, that securities that lose
value quickly in market declines may also show the strongest gains in
more favorable environments.
INTEREST-RATE RISK - Since bond prices fall as interest rates rise, this
type of risk is a particular concern for fixed-income inves-
tors. However, interest-rate increases can also have a substantial
negative effect on the stock market.
INFLATION RISK - If your investments cannot keep pace with inflation,
your money will begin to lose its purchasing power. Stock investments
are generally considered among the best ways of addressing inflation
risk over the long term.
CREDIT AND PREPAYMENT RISK - Credit risk is the concern that the
security's issuer will not be able to meet its payment, while prepayment
risk involves the premature payoff of a loan, with a resulting loss of
interest income. Professional management and in-depth research are
invaluable in managing both these risks.
LIQUIDITY RISK - Not all investments can be readily converted into cash
at their perceived market values. Liquidity risk can affect the price of
securities held in the fund's portfolio and, thus, the fund's share
prices.
<TABLE>
<CAPTION>
Portfolio of investments owned
March 31, 1996 (Unaudited)
COMMON STOCKS (96.0%)*
NUMBER OF SHARES VALUE
<S> <C> <C> <C>
Australia (4.5%)[DIAMOND]
- -------------------------------------------------------------------------------------------------------------
1,200,000 CSL Limited $4,399,574
518,112 National Australia Bank Ltd. 4,627,134
175,000 News Corp. Ltd. ADR 4,025,000
109,100 Qantas Airways Ltd. 144A+ 1,936,525
773,146 QBE Insurance Group Ltd. 3,870,312
62,700 Westpac Banking Ltd. 296,226
------------
19,154,771
Hong Kong (20.8%)[DIAMOND]
- -------------------------------------------------------------------------------------------------------------
4,776,000 Amoy Properties Ltd. + 5,588,529
1,105,000 Cheung Kong Holdings Ltd. 7,786,519
1,750,000 Citic Pacific Ltd. 6,788,032
3,350,000 First Pacific Co. 4,764,552
1,100,800 Guoco Group Ltd. 6,063,210
2,000,000 Hang Lung Development Co. 3,814,228
3,700,000 HKR International Ltd. 4,018,515
1,892,000 Hong Kong Electric Holdings Ltd. 6,152,388
1,900,000 Hong Kong Land Holdings Ltd. 4,560,000
3,500,000 Hong Kong Telecommunications Ltd. 6,991,673
458,416 HSBC Holdings PLC 6,875,469
1,109,000 Hutchison Whampoa, Ltd. 6,997,388
398,000 Shun Tak Holdings Ltd. 277,883
850,000 Swire Pacific Ltd. Class A 7,473,300
1,745,000 Varitronix International Ltd. 3,203,822
1,613,000 Wharf (Holdings) Ltd 6,089,783
------------
87,445,291
India (0.3%)[DIAMOND]
- -------------------------------------------------------------------------------------------------------------
393,750 KEC International Ltd. + 1,306,693
Indonesia (3.5%)[DIAMOND]
- -------------------------------------------------------------------------------------------------------------
1,900,000 Astra International (Registered) 2,723,584
506,925 Bank Bali (Registered) 1,084,566
482,000 PT Indorama Synthetics (Registered) 1,649,982
1,555,000 PT Matahari Putra Prima 3,393,461
1,423,070 PT Mulia Industrindo 2,481,396
330,000 Sampoerna Industries (Registered) 3,448,981
------------
14,781,970
Japan (44.8%)[DIAMOND]
- -------------------------------------------------------------------------------------------------------------
381,000 Bridgestone Corp. $6,361,848
305,000 Dai Nippon Printing Co. 5,548,042
308,000 Daikin Industries Ltd. 3,160,448
510,000 Daiwa Securities Co. 7,754,666
1,263 East Japan Railway Co. 6,479,945
101,000 Futaba Industrial Co., Ltd. 4,560,076
135,000 Glory Ltd. (Glory Kogyo) 4,369,870
86,500 Hirose Electric Co. Ltd. 4,857,557
230,000 Hitachi Credit Corp. 4,248,135
125,000 Ito-Yokado Co., Ltd. 7,404,386
180,000 Jusco Co. Ltd. 4,684,702
586,000 Kamigumi Co. Ltd. 5,958,397
520,000 KAO Corp. 6,451,494
27,000 Keyence Corp. 3,223,881
180,000 Komori Corp. 4,567,165
209,000 Kurita Water Ltd. 4,835,076
350,000 Marui Co., Ltd. 7,607,278
225,000 Maruichi Steel Tube 4,386,661
275,100 Mitsubishi Bank 5,799,684
750,000 Mitsui 6,779,386
141,000 Murata Manufacturing Co., Ltd. 4,840,299
470,000 Nippon Express Co., Ltd. 4,603,546
610 Nippon Telegraph and Telephone Corp. 4,449,814
550,000 Nishimatsu Construction Co. 6,259,330
300,000 Omron Corp. 6,632,464
275,000 Onward Kashiyama Co. Ltd. 4,155,784
165,000 Santen Pharmaceutical Co., Ltd. 3,401,586
60,000 Secom Co., Ltd. 3,912,314
333,000 Sekisui Chemical Co., Ltd. 4,348,881
560,000 Sharp Corp. 8,932,838
360,000 Suzuki Motor Co., Ltd. 4,432,837
270,000 Takasago Thermal Engineering 4,382,464
200,000 Toho Bank Ltd. 1,432,836
528,000 Tokio Marine & Fire Insurance Co., Ltd. 6,846,270
120,000 Tostem Corp. 3,738,807
134,000 Tsubakimoto Precision Prods. Ltd. 1,725,000
88,000 Yamaguchi Bank Ltd. 1,469,403
180,000 Yamanouchi Pharmaceutical Co., Ltd. 3,996,269
------------
188,599,439
Malaysia (4.4%)[DIAMOND]
- -------------------------------------------------------------------------------------------------------------
300,000 Carlsberg Brewery of Malaysia 1,906,830
276,000 Edaran Otomobil Nasional Berhad + 2,473,431
653,750 George Kent 1,047,858
251,000 Hong Leong Industries Berhad 1,268,377
307,000 Leader Universal 872,641
231,000 Malayan Banking Berhad 2,152,231
640,000 Maruichi Malaysia 2,248,717
371,000 Sungei Way Holdings Berhad 1,611,133
550,000 Telekom Malaysia (Berhad) 5,059,218
------------
18,640,436
Philippines (1.1%)[DIAMOND]
- -------------------------------------------------------------------------------------------------------------
79,000 Philippine Long Distance Telephone Co. ADR $4,206,750
Singapore (10.4%)[DIAMOND]
- -------------------------------------------------------------------------------------------------------------
180,000 City Developments Ltd. 1,597,444
784,000 Clipsal Industries Ltd. 1,842,400
1,960,000 Courts (Singapore) Ltd. 3,325,808
394,000 Cycle & Carriage Ltd. 4,531,629
1,100,000 DBS Land Ltd. 4,217,252
394,000 Development Bank of Singapore (Registered) 4,839,333
544,648 Jardine Matheson Holdings Ltd. 4,248,254
921,000 NatSteel Ltd. 1,811,267
4,000 Overseas Union Bank Ltd. (Registered) 28,399
487,000 Singapore Airlines Ltd. (Registered) 5,048,065
206,600 Singapore Press Holdings (Registered) 4,121,732
636,150 United Overseas Bank Ltd. (Registered) 6,413,440
537,000 Venture Manufacturing Ltd. 1,906,283
------------
43,931,306
South Korea (1.7%)[DIAMOND]
- -------------------------------------------------------------------------------------------------------------
279,000 Cho Hung Bank Co. Ltd. 3,566,876
216 Seoul Access Trust + 3,510,000
------------
7,076,876
Taiwan (--%)[DIAMOND]
- -------------------------------------------------------------------------------------------------------------
18,193 Tung Ho Steel Enterprise 144A GDR + 168,285
Thailand (3.1%)[DIAMOND]
- -------------------------------------------------------------------------------------------------------------
300,000 Bank of Ayudhya PCL (Registered) 1,960,784
1,500,000 CMIC Finance & Securities Co., Ltd. 4,991,087
1,040,100 Industrial Finance Corp. (Registered) 3,831,622
2,150,000 Ruam Pattana Fund (Registered) 1,383,937
1,150,000 Sinpinyo Fund 5 Foreign (Registered) 831,353
------------
12,998,783
United States of America (1.4%)
- -------------------------------------------------------------------------------------------------------------
195,000 AFLAC Inc. 6,093,750
------------
Total Common Stocks (cost $372,076,422) $404,404,350
CONVERTIBLE BONDS AND NOTES (0.5%)*[DIAMOND](cost $2,465,000)
PRINCIPAL AMOUNT VALUE
$2,550,000 Teco Electric & Machinery cv. deb. 144A cv. deb. 2 3/4s,
2004 (Taiwan) $2,116,500
SHORT-TERM INVESTMENTS (1.3%)*(cost $5,645,539)
PRINCIPAL AMOUNT VALUE
$5,643,000 Interest in $844,579,000 joint repurchase agreement
dated March 29, 1996 with Morgan (J.P.) & Co., Inc.
due April 1, 1996 with respect to various U.S. Treasury
obligations-maturity value of $5,645,539 for an
effective yield of 5.40% $5,645,539
- -------------------------------------------------------------------------------------------------------------
Total Investments (cost $380,186,961) $412,166,389
- -------------------------------------------------------------------------------------------------------------
* Percentages indicated are based on net assets of $421,420,628.
+ Non-income-producing security.
[DIAMOND] Securities whose values are determined or significantly influenced by trading on exchanges not in the
U.S. or Canada.
*** The aggregate identified cost on a tax cost basis is $381,435,573 resulting in gross unrealized
appreciation and depreciation of $39,658,646 and $8,927,830 respectively, or net unrealized appreciation
of $30,730,816.
144A after the name of a security represents those exempt from registration under rule 144A of the
Securities Act of 1933. These securites may be resold in transactions exempt from registration,
normally to qualified institutuional buyers.
ADR or GDR after the name of a holding stands for American Depository Receipts or Global Depository
Receipts, respectively, representing ownership of foreign securities on deposit with a domestic
custodian bank.
<CAPTION>
- --------------------------------------------------------------------------------------------
Forward Currency Contracts to Sell Outstanding at March 31, 1996
(aggregate face value $91,994,883)
Market Aggregate Delivery Unrealized
Value Face Value Date Appreciation
- --------------------------------------------------------------------------------------------
Japanese Yen $89,698,289 $91,994,883 7/17/96 $2,296,594
- --------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of assets and liabilities
March 31,1996 (Unaudited)
- --------------------------------------------------------------------------------------
<S> <C>
Assets
Investments in securities, at value
(identified cost $380,186,961) (Note 1) $412,166,389
- --------------------------------------------------------------------------------------
Cash 23,333
- --------------------------------------------------------------------------------------
Dividends and interest receivable 1,192,151
- --------------------------------------------------------------------------------------
Receivable for shares of the fund sold 5,968,803
- --------------------------------------------------------------------------------------
Receivable for securities sold 7,723,330
- --------------------------------------------------------------------------------------
Receivables for open forward currency contracts 2,296,594
- --------------------------------------------------------------------------------------
Total assets 429,370,600
Liabilities
- --------------------------------------------------------------------------------------
Payable for securities purchased 5,694,935
- --------------------------------------------------------------------------------------
Payable for shares of the fund repurchased 796,438
- --------------------------------------------------------------------------------------
Payable for compensation of Manager (Note 2) 773,083
- --------------------------------------------------------------------------------------
Payable for investor servicing and custodian fees (Note 2) 278,384
- --------------------------------------------------------------------------------------
Payable for compensation of Trustees (Note 2) 1,723
- --------------------------------------------------------------------------------------
Payable for administrative services (Note 2) 2,455
- --------------------------------------------------------------------------------------
Payable for distribution fees (Note 2) 297,391
- --------------------------------------------------------------------------------------
Other accrued expenses 105,563
- --------------------------------------------------------------------------------------
Total liabilities 7,949,972
- --------------------------------------------------------------------------------------
Net assets $421,420,628
Represented by
- --------------------------------------------------------------------------------------
Paid-in-capital (Notes 1 and 4) $407,450,599
- --------------------------------------------------------------------------------------
Distributions in excess of net investment income (Note 1) (7,135,719)
- --------------------------------------------------------------------------------------
Accumulated net realized loss on investments and
foreign currency transactions (Note 1) (13,160,706)
- --------------------------------------------------------------------------------------
Net unrealized appreciation of investments and
assets and liabilities in foreign currencies 34,266,454
- --------------------------------------------------------------------------------------
Total -- Representing net assets applicable to
capital shares outstanding $421,420,628
Computation of net asset value and offering price
- --------------------------------------------------------------------------------------
Net asset value and redemption price of class A shares
($212,849,514 divided by 15,456,863 shares) $13.77
- --------------------------------------------------------------------------------------
Offering price per class A share (100/94.25 of $13.77)* $14.61
- --------------------------------------------------------------------------------------
Net asset value and offering price of class B shares
($202,188,252 divided by 14,875,302 shares)** $13.59
- --------------------------------------------------------------------------------------
Net asset value and redemption price of class M shares
($6,382,862 divided by 465,616 shares) $13.71
- --------------------------------------------------------------------------------------
Offering price per class M share (100/96.50 of $13.71)* $14.21
- --------------------------------------------------------------------------------------
* 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 March 31,1996 (Unaudited)
<S> <C>
Investment Income
Dividends (net of foreign tax of $201,052) $2,131,489
- --------------------------------------------------------------------------------------
Interest 483,868
- --------------------------------------------------------------------------------------
Total investment income 2,615,357
Expenses:
- --------------------------------------------------------------------------------------
Compensation of Manager (Note 2) 1,395,317
- --------------------------------------------------------------------------------------
Investor servicing and custodian fees (Note 2) 556,102
- --------------------------------------------------------------------------------------
Compensation of Trustees (Note 2) 9,665
- --------------------------------------------------------------------------------------
Administrative services (Note 2) 4,783
- --------------------------------------------------------------------------------------
Distribution fees -- Class A (Note 2) 222,363
- --------------------------------------------------------------------------------------
Distribution fees -- Class B (Note 2) 834,597
- --------------------------------------------------------------------------------------
Distribution fees -- Class M (Note 2) 15,969
- --------------------------------------------------------------------------------------
Audit 24,204
- --------------------------------------------------------------------------------------
Legal 2,768
- --------------------------------------------------------------------------------------
Registration fees 17,959
- --------------------------------------------------------------------------------------
Postage 68,851
- --------------------------------------------------------------------------------------
Reports to shareholders 28,366
- --------------------------------------------------------------------------------------
Other 88,161
- --------------------------------------------------------------------------------------
Total expenses 3,269,105
- --------------------------------------------------------------------------------------
Expense reduction (Note 2) (40,303)
- --------------------------------------------------------------------------------------
Net expenses 3,228,802
- --------------------------------------------------------------------------------------
Net investment loss (613,445)
- --------------------------------------------------------------------------------------
Net realized loss on investments (Notes 1 and 3) (1,997,033)
- --------------------------------------------------------------------------------------
Net realized gain on forward currency contracts and
foreign currency translation (Note 1) 9,040,488
- --------------------------------------------------------------------------------------
Net unrealized depreciation on forward currency contracts
and foreign currency translation during the period (702,059)
- --------------------------------------------------------------------------------------
Net unrealized appreciation of investments during the period 15,540,040
- --------------------------------------------------------------------------------------
Net gain on investments 21,881,436
- --------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $21,267,991
- --------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of changes in net assets
- ------------------------------------------------------------------------------------------------------
Six months ended Year ended
March 31 September 30
1996* 1995
- ------------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase in net assets
- ------------------------------------------------------------------------------------------------------
Operations:
- ------------------------------------------------------------------------------------------------------
Net investment loss ($613,445) ($570,671)
- ------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments and
foreign currency transactions 7,043,455 (13,087,663)
- ------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments and
assets and liabilities in foreign currencies 14,837,981 2,882,897
- ------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations 21,267,991 (10,775,437)
- ------------------------------------------------------------------------------------------------------
Distributions to shareholders:
- ------------------------------------------------------------------------------------------------------
From net investment income
Class A (6,889,913) (408,458)
- ------------------------------------------------------------------------------------------------------
Class B (5,671,480) (332,113)
- ------------------------------------------------------------------------------------------------------
Class M (124,847) --
- ------------------------------------------------------------------------------------------------------
From net realized gain on investments
Class A (94,780) (4,408,786)
- ------------------------------------------------------------------------------------------------------
Class B (89,226) (3,584,353)
- ------------------------------------------------------------------------------------------------------
Class M (1,704) --
- ------------------------------------------------------------------------------------------------------
Increase from capital share transactions (Note 4) 106,908,366 65,187,981
- ------------------------------------------------------------------------------------------------------
Total increase in net assets 115,304,407 45,678,834
- ------------------------------------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------------------------------------
Beginning of period 306,116,221 260,437,387
- ------------------------------------------------------------------------------------------------------
End of period (including distributions in excess of
net investment income and undistributed net investment
income of $7,135,719 and $6,163,966, respectively) $421,420,628 $306,116,221
- ------------------------------------------------------------------------------------------------------
* Unaudited.
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Financial highlights
(For a share outstanding throughout the period)
For the Period
February 1, 1995
Six months (commencement Six months
ended of operations) ended Year ended
March 31 September 30 March 31 September 30
- --------------------------------------------------------------------------------------------
1996*+ 1995 1996*+ 1995
- --------------------------------------------------------------------------------------------
Class M Class B
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value,
beginning of period $13.53 $12.41 $13.37 $14.53
- --------------------------------------------------------------------------------------------
Investment activities
- --------------------------------------------------------------------------------------------
Net investment income (loss) (.03) (.01) (.04) (.07)
- --------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments .81 1.13 .78 (.64)
- --------------------------------------------------------------------------------------------
Total from investment
operations .78 1.12 .74 (.71)
- --------------------------------------------------------------------------------------------
Less distributions from:
- --------------------------------------------------------------------------------------------
Net investment income (.59) -- (.51) (.04)
- --------------------------------------------------------------------------------------------
Net realized gain on investments (.01) -- (.01) (.41)
- --------------------------------------------------------------------------------------------
Total distributions (.60) -- (.52) (.45)
- --------------------------------------------------------------------------------------------
Net asset value, end of period $13.71 $13.53 $13.59 $13.37
- --------------------------------------------------------------------------------------------
Total investment return at
net asset value (%) (b) 5.96(c) 9.03(c) 5.73(c) (4.88)
- --------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $6,383 $2,829 $202,188 $144,514
- --------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets (%)(d) 1.07(c) 2.09(c) 1.19(c) 2.31
- --------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets (%) (.22)(c) (.45)(c) (.37)(c) (.62)
- --------------------------------------------------------------------------------------------
Portfolio turnover (%) 65.40(c) 91.13 65.40(c) 91.13
- --------------------------------------------------------------------------------------------
Average commision rate (e) $0.0220(c) -- $0.0220(c) --
- --------------------------------------------------------------------------------------------
<CAPTION>
Financial highlights (Continued)
(For a share outstanding throughout the period)
For the Period
June 1, 1993 Six
(commencement months
Year ended of operations) ended
September 30 September 30 March 31
- --------------------------------------------------------------------------------------------
1994 1993+ 1996*+ 1995
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value,
beginning of period $11.54 $10.86 $13.58 $14.64
- --------------------------------------------------------------------------------------------
Investment activities
- --------------------------------------------------------------------------------------------
Net investment income (loss) (.03) (.02) -- .02
- --------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 3.06 .70 .80 (.63)
- --------------------------------------------------------------------------------------------
Total from investment
operations 3.03 .68 .80 (.61)
- --------------------------------------------------------------------------------------------
Less distributions from:
- --------------------------------------------------------------------------------------------
Net investment income -- -- (.60) (.04)
- --------------------------------------------------------------------------------------------
Net realized gain on investments (.04) -- (.01) (.41)
- --------------------------------------------------------------------------------------------
Total distributions (.04) -- (.61) (.45)
- --------------------------------------------------------------------------------------------
Net asset value, end of period $14.53 $11.54 $13.77 $13.58
- --------------------------------------------------------------------------------------------
Total investment return at
net asset value (%) (b) 26.31 6.26(c) 6.10(c) (4.14)
- --------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $110,951 $9,901 $212,850 $158,773
- --------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets (%)(d) 2.27 .86(c) .81(c) 1.55
- --------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets (%) (.73) (.25)(c) .01(c) .14
- --------------------------------------------------------------------------------------------
Portfolio turnover (%) 65.02 79.78 65.40(c) 91.13
- --------------------------------------------------------------------------------------------
Average commision rate (e) -- -- $0.0220(c) --
- --------------------------------------------------------------------------------------------
<CAPTION>
Financial highlights (Continued)
(For a share outstanding throughout the period)
For the Period
February 20, 1991
(commencement
of operations)
Year ended September 30 September 30
- ----------------------------------------------------------------------------------------
1994 1993 1992 1991
- ----------------------------------------------------------------------------------------
Class A
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value,
beginning of period $11.55 $8.17 $8.08 $8.58
- ----------------------------------------------------------------------------------------
Investment activities
- ----------------------------------------------------------------------------------------
Net investment income (loss) .04 (.03) (.01)(a) .02(a)
- ----------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 3.09 3.41 .10 (.52)
- ----------------------------------------------------------------------------------------
Total from investment
operations 3.13 3.38 .09 (.50)
- ----------------------------------------------------------------------------------------
Less distributions from:
- ----------------------------------------------------------------------------------------
Net investment income -- -- -- --
- ----------------------------------------------------------------------------------------
Net realized gain on investments (.04) -- -- --
- ----------------------------------------------------------------------------------------
Total distributions (.04) -- -- --
- ----------------------------------------------------------------------------------------
Net asset value, end of period $14.64 $11.55 $8.17 $8.08
- ----------------------------------------------------------------------------------------
Total investment return at
net asset value (%) (b) 27.15 41.37 1.11 (5.83)(c)
- ----------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $149,486 $24,150 $2,548 $2,084
- ----------------------------------------------------------------------------------------
Ratio of expenses to average
net assets (%)(d) 1.53 2.03 1.88(a) 1.38(a)(c)
- ----------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets (%) (.01) (.54) (.06)(a) .28(a)(c)
- ----------------------------------------------------------------------------------------
Portfolio turnover (%) 65.02 79.78 95.67 47.11(c)
- ----------------------------------------------------------------------------------------
Average commision rate (e) -- -- -- --
- ----------------------------------------------------------------------------------------
* Unaudited.
+ Per share net investment income (loss) has been determined on the basis of the weighted average number
of shares outstanding during the period.
(a) Reflects an expense limitation in effect during the period. As a result of such limitation, expenses
of the fund for the periods ended September 30, 1991 and 1992, reflect a per share reduction of
approximately $0.08 and $0.01, respectively.
(b) Total investment return assumes dividend reinvestment and does not reflect the effect of sales charges.
(c) Not annualized.
(d) The ratio of expenses to average net assets for the periods ended September 30, 1995 and thereafter
include amounts paid through expense offset arrangements. Prior period ratios exclude these amounts.
(See Note 2)
(e) Average commisson rate paid is presented for fiscal period beginning September 1, 1995 in conformance
with requirements issued by the SEC.
</TABLE>
Notes to financial statements
March 31, 1996 (Unaudited)
Note 1
Significant accounting policies
The fund is registered under the Investment Company Act of 1940, as
amended, as a diversified, open-end management investment company. The
fund seeks capital appreciation by investing primarily in common stocks
and other securities of companies located in Asia and in the Pacific
Basin.
The fund offers class A, class B and class M shares. Class A shares are
sold with a maximum front-end sales charge of 5.75%. 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 3.50% 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 Investments for which market quotations are
readily available are stated at market value, which is determined using
the last reported sale price on the principal market in which the
securities are traded, or, if no sales are reported--as in the case of
some securities traded over-the-counter--the last reported bid price,
except that certain U.S. government obligations are stated at the mean
between the last reported bid and asked prices. Short-term investments
having remaining maturities of 60 days or less are stated at amortized
cost, which approximates market value, and other investments are stated
at fair value following procedures approved by the Trustees. (See
Section F of Note 1 with respect to the valuation of forward currency
contracts.)
Securities quoted in foreign currencies are translated into U.S. dollars
at the current exchange rate. Gains and losses that arise from changes
in exchange rates are not segregated from gains and losses that arise
from changes in market prices of investments. The effects on net
investment income arising from changes in exchange rates are also not
segregated.
B) Joint trading account Pursuant to an exemptive order issued by the
Securities and Exchange Commission, the fund may transfer uninvested
cash balances into a joint trading account along with the cash of other
registered investment companies managed by Putnam Investment Management,
Inc. ("Putnam Management"), the fund's Manager, a wholly-owned
subsidiary of Putnam Investments, Inc. and certain other accounts. These
balances may be invested in one or more repurchase agreements and/or
short-term money market instruments.
C) Repurchase agreements The fund, or any joint trading account, through
its custodian, receives delivery of the underlying securities, the
market value of which at the time of purchase is required to be in an
amount at least equal to 102% of the resale price, including accrued
interest. Putnam Management is responsible for determining that the
value of these underlying securities is at all times at least equal to
102% of the resale price, including accrued interest.
D) 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. Dividend income is
recorded on the ex-dividend date except that certain dividends from
foreign securities are recorded as soon as the fund is informed of the
ex-dividend date.
E) Foreign currency translation The accounting records of the fund are
maintained in U.S. dollars. The market value of foreign securities,
currency holdings, other assets and liabilities are recorded in the
books and records of the fund after translation to U.S. dollars based on
the exchange rates on that day. The cost of each security is determined
using historical exchange rates. Income and withholding taxes are
translated at prevailing exchange rates when accrued or incurred. The
fund does not isolate that portion of realized or unrealized gains or
losses resulting from changes in the foreign exchange rate on
investments from fluctuations arising from changes in the market prices
of the securities. Such fluctuations are included with the net realized
and unrealized gain or loss on investments. Net realized gains and
losses on foreign currency transactions represent net exchange gains or
losses on closed forward currency contracts, disposition of foreign
currencies and the difference between the amount of investment income
and foreign withholding taxes recorded on the fund's books and the U.S.
dollar equivalent amounts actually received or paid. Net unrealized
gains and losses on foreign currency transactions arise from changes in
the value of open forward currency contracts and assets and liabilities
other than investments at the period end, resulting from changes in the
exchange rate.
F) Forward currency contracts The fund may engage in forward currency
contracts, which are agreements between two parties to buy and sell
currencies at a set price on a future date, to protect against a decline
in value relative to the U.S. dollar of the currencies in which its
portfolio securities are denominated or quoted (or an increase in the
value of a currency in which securities a fund intends to buy are
denominated, when a fund holds cash reserves and short-term
investments). The U.S. dollar value of forward currency contracts is
determined using forward currency exchange rates supplied by a quotation
service. The market value of the contract will fluctuate with changes in
currency exchange rates. The contract is "marked to market" daily and
the change in market value is recorded as an unrealized gain or loss.
When the contract is closed, the fund records a realized gain or loss
equal to the difference between the value of the contract at the time it
was opened and the value at the time it was closed. The fund could be
exposed to risk if the value of the currency changes unfavorably, if the
counterparties to the contracts are unable to meet the terms of their
contracts or if the fund is unable to enter into a closing position.
G) Federal taxes It is the policy of the fund to distribute all of its
taxable income within the prescribed time and otherwise comply with the
provisions of the Internal Revenue Code applicable to regulated
investment companies. It is also the intention of the fund to distribute
an amount sufficient to avoid imposition of any excise tax under Section
4982 of the Internal Revenue Code of 1986. Therefore, no provision has
been made for federal taxes on income, capital gains or unrealized
appreciation on securities held and for excise tax on income and capital
gains.
H) Distributions to shareholders Distributions to shareholders from net
investment income are recorded by the fund on the ex-dividend date.
Capital gain distributions, if any, are recorded on the ex-dividend date
and paid annually. The amount and character of income and gains to be
distributed are determined in accordance with income tax regulations
which may differ from generally accepted accounting principles.
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.
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: 0.80% of the
first $500 million of average net assets, 0.70% of the next $500
million, 0.65% of the next $500 million and 0.60% of any amount over
$1.5 billion is subject to reduction in any year by the amount of
certain brokerage commissions and fees (less expenses) received by
affiliates of Putnam Management on the fund's portfolio transactions.
The fund reimburses Putnam Management for the compensation and related
expenses of certain officers of the fund and their staff who provide
administrative services to the fund. The aggregate amount of all such
reimbursements is determined annually by the Trustees.
Trustees of the fund receive an annual Trustees fee of $1,100 and an
additional fee for each Trustee's meeting attended. Trustees who are not
interested persons of Putnam Management and who serve on committees of
the Trustees receive additional fees for attendance at certain committee
meetings.
The fund adopted a Trustee Fee Deferral Plan (the "Plan") which allows
the Trustees to defer the receipt of all or a portion of Trustees Fees
payable on or after July 1, 1995. The deferred fees remain in the fund
and are invested in the fund or in other Putnam funds until distribution
in accordance with the Plan.
Custodial functions for the fund's assets are provided by Putnam
Fiduciary Trust Company (PFTC), a wholly owned subsidiary of Putnam
Investments, Inc. Investor servicing agent functions are provided by
Putnam Investor Services, a division of PFTC.
For the six months ended March 31, 1996, fund expenses were reduced by
$40,303 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 the assets utilized in connection with the expense offset
arrangements in an income producing asset if it had not entered into
such arrangements.
The fund has adopted distribution plans (the "Plans") with respect to
its class A, class B and class M shares pursuant to Rule 12b-1 under the
Investment Company Act of 1940. The purpose of the Plans is to
compensate Putnam Mutual Funds Corp., a wholly-owned subsidiary of
Putnam Investments Inc., for services provided and expenses incurred by
it in distributing shares of the fund. The Plans provide for payments by
the fund to Putnam Mutual Funds Corp. at an annual rate up to 0.35%,
1.00% and 1.00% of the average net assets attributable to class A, class
B and class M shares, respectively. The Trustees have approved
payment by the fund at an annual rate of 0.25%, 1.00% and 0.75% of the
average net assets attributable to class A, class B and class M shares
respectively.
For the six months ended March 31, 1996, Putnam Mutual Funds Corp.,
acting as underwriter received net commissions of $179,904 and $9,918
from the sale of class A and class M shares, respectively and received
$157,650 in contingent deferred sales charges from redemptions of class
B shares. A deferred sales charge of up to 1% is assessed on certain
redemptions of class A shares. For the period ended March 31, 1996,
Putnam Mutual Funds Corp., acting as underwriter received $681 on class
A redemptions.
Note 3
Purchase and sales of securities
During the six months ended March 31, 1996, purchases and sales of
investment securities other than short-term investments aggregated
$187,925,110 and $87,921,447, respectively. There were no purchases and
sales of U.S. government obligations. In determining the net gain or
loss on securities sold, the cost of securities has been determined on
the identified cost basis.
Note 4
Capital shares
At March 31, 1996, there was an unlimited number of shares of beneficial
interest authorized. Transactions in capital shares were as follows:
Six months ended
March 31, 1996
- ----------------------------------------------------
Class A Shares Amount
- ----------------------------------------------------
Shares sold 16,792,107 $227,100,970
- ----------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 492,354 6,420,293
- ----------------------------------------------------
17,284,461 233,521,263
Shares
repurchased (13,520,258) (183,498,661)
- ----------------------------------------------------
Net increase 3,764,203 $50,022,602
- ----------------------------------------------------
Year ended
September 30, 1995
- ----------------------------------------------------
Class A Shares Amount
- ----------------------------------------------------
Shares sold 15,568,780 $206,706,791
- ----------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 329,815 4,386,545
- ----------------------------------------------------
15,898,595 211,093,336
Shares
repurchased (14,416,240) (191,188,659)
- ----------------------------------------------------
Net increase 1,482,355 $19,904,677
- ----------------------------------------------------
Six months ended
March 31, 1996
- ----------------------------------------------------
Class B Shares Amount
- ----------------------------------------------------
Shares sold 19,235,419 $256,882,219
- ----------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 391,192 5,046,387
- ----------------------------------------------------
19,626,611 261,928,606
Shares
repurchased (15,556,669) (208,505,760)
- ----------------------------------------------------
Net increase 4,069,942 $53,422,846
- ----------------------------------------------------
Year ended
September 30, 1995
- ----------------------------------------------------
Class B Shares Amount
- ----------------------------------------------------
Shares sold 12,548,682 $166,060,840
- ----------------------------------------------------
Shares
repurchased (9,378,249) (123,563,428)
- ----------------------------------------------------
Net increase 3,170,433 $42,497,412
- ----------------------------------------------------
Six months ended
March 31, 1996
- ----------------------------------------------------
Class M Shares Amount
- ----------------------------------------------------
Shares sold 493,502 $6,620,479
- ----------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 7,884 102,417
- ----------------------------------------------------
501,386 6,722,896
Shares
repurchased (244,815) (3,259,978)
- ----------------------------------------------------
Net increase 256,571 $3,462,918
- ----------------------------------------------------
For period
February 1, 1995
(commencement of
operations) to
September 30, 1995
- ----------------------------------------------------
Class M Shares Amount
- ----------------------------------------------------
Shares sold 220,645 $2,940,683
- ----------------------------------------------------
Shares
repurchased (11,600) (154,791)
- ----------------------------------------------------
Net increase 209,045 $2,785,892
- ----------------------------------------------------
FUND INFORMATION
INVESTMENT MANAGER
Putnam Investment
Management, Inc.
One Post Office Square
Boston, MA 02109
MARKETING SERVICES
Putnam Mutual Funds Corp.
One Post Office Square
Boston, MA 02109
CUSTODIAN
Putnam Fiduciary Trust Company
LEGAL COUNSEL
Ropes & Gray
TRUSTEES
George Putnam, Chairman
William F. Pounds, Vice Chairman
Jameson Adkins Baxter
Hans H. Estin
John A. Hill
Elizabeth T. Kennan
Lawrence J. Lasser
Robert E. Patterson
Donald S. Perkins
George Putnam, III
Eli Shapiro
A.J.C. Smith
W. Nicholas Thorndike
OFFICERS
George Putnam
President
Charles E. Porter
Executive Vice President
Patricia C. Flaherty
Senior Vice President
John D. Hughes
Senior Vice President and Treasurer
Lawrence J. Lasser
Vice President
Gordon H. Silver
Vice President
Peter Carman
Vice President
Anthony V. Regan
Vice President
David K. Thomas
Vice President and Fund Manager
William N. Shiebler
Vice President
John R. Verani
Vice President
Paul M. O'Neil
Vice President
Beverly Marcus
Clerk and Assistant Treasurer
This report is for the information of shareholders of Putnam Asia
Pacific Growth Fund. It may also be used as sales literature when
preceded or accompanied by the current prospectus, which gives details
of sales charges, investment objectives, and operating policies of the
fund, and the most recent copy of Putnam's Quarterly Performance
Summary. For more information, or to request a prospectus, call toll
free: 1-800-225-1581.
Shares of mutual funds are not deposits or obligations of, or guaranteed
or endorsed by, any financial institution, are not insured by the
Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board
or any other agency, and involve risk, including the possible loss of
principal amount invested.
Putnam Investments
The Putnam Funds
One Post Office Square
Boston, Massachusetts 02109
- ------------------
Bulk Rate
U.S. Postage
PAID
Putnam
Investments
- ------------------
24527-844/193/470 5/96
