<PAGE>
Putnam
Tax-Free
Health Care
Fund
ANNUAL REPORT
May 31, 1994
[LOGO OF PUTNAM APPEARS HERE]
<PAGE>
PERFORMANCE HIGHLIGHTS
Putnam Tax-Free Health Care Fund significantly outperformed the average
general closed-end municipal bond fund tracked by Lipper for the one-year
period ended May 31, 1994. The fund's total return at net asset value of
5.08% was well ahead of the 1.59% category average over this period.
Performance should always be considered in light of a fund's investment
strategy. Putnam Tax-Free Health Care Fund is designed for investors seeking
high current income free from federal income tax and consistent with
preservation of capital through a portfolio of securities in the health care
sector.
FISCAL 1994 RESULTS AT A GLANCE
<TABLE>
<CAPTION>
MARKET
TOTAL RETURN: NAV PRICE
<S> <C> <C>
Twelve months ended 5/31/94
(change in value during period
plus reinvested earnings) 5.08% 6.46%
MARKET
SHARE VALUE: NAV PRICE
5/31/93 $14.73 $14.625
5/31/94 14.29 14.375
DISTRIBUTIONS: CAPITAL GAINS/1/
NUMBER INCOME TOTAL
12 $1.0128 $0.185 $1.1978
MARKET
CURRENT RETURN NAV PRICE
(end of period)
Current divided rate/2/ 7.09% 7.05%
Taxable equivalent/3/ 11.74 11.67
</TABLE>
Performance data represent past results. For performance over longer periods,
see pages 8 and 9. /1/Capital gains are taxable. Investment income may be
subject to state and local taxes. /2/Income portion of most recent distribution,
annualized and divided by NAV or market price at end of period. /3/Assumes
maximum 39.6% federal tax rate. Results for investors subject to lower tax rates
would not be as advantageous. The fund will not invest in securities subject to
the federal Alternative Minimum Tax for individual investors.
2
<PAGE>
[PHOTOGRAPH APPEARS HERE]
(C)Karsh, Ottawa
FROM THE CHAIRMAN
DEAR SHAREHOLDER:
THE FEDERAL RESERVE BOARD'S PRIMARY CONCERN REMAINS FIGHTING NOT ONLY
INFLATION BUT THE FEAR OF INFLATION. IT IS ADDRESSING THIS ISSUE BY GRADUALLY
RAISING THE SHORT-TERM INTEREST RATES UNDER ITS CONTROL TO SLOW THE ECONOMY'S
GROWTH TO WHAT IT REGARDS AS A SUSTAINABLE PACE.
THE COMBINATION OF THE FED'S CONTINUING POLICY AND THE RESPONSE BY
INDIVIDUALS AND BUSINESSES TO LAST YEAR'S TAX INCREASE COULD PRODUCE MORE OF
A SLOWDOWN IN BUSINESS THAN MANY OBSERVERS NOW EXPECT.
AS THIS SLOWING BECOMES MORE OBVIOUS, THE FED WILL COME UNDER GROWING
PRESSURE FROM POLITICIANS TO EASE UP. THE FED IS NOT LIKELY TO YIELD. BUT THE
VERY FACT THAT INVESTORS THINK IT MIGHT COULD CAUSE SOME MORE VOLATILITY IN
THE BOND MARKETS IN THE MONTHS AHEAD.
MEANWHILE, YOU CAN TAKE COMFORT IN THE TAX SHELTER PROVIDED FOR THE INCOME
GENERATED BY YOUR PUTNAM TAX-EXEMPT FUND SHARES.
IN THE FOLLOWING REPORT, FUND MANAGER HOWARD MANNING EXPLAINS HOW HE IS
POSITIONING YOUR FUND'S PORTFOLIO TO RESPOND TO 1994'S UNFOLDING EVENTS.
RESPECTFULLY YOURS,
GEORGE PUTNAM
JULY 20, 1994
3
<PAGE>
REPORT FROM THE FUND MANAGER
HOWARD K. MANNING
Putnam Tax-Free Health Care Fund's fiscal year ended May 31, 1994, was marked
by significant changes in the investment climate. During the past 12 months,
a sluggish economic recovery gathered enough steam to fuel concerns that
higher inflation might be looming on the horizon. This period saw interest
rates fall to their lowest levels in decades, causing bond prices to increase
dramatically. And this year, the Federal Reserve Board, after establishing an
expansionary monetary policy for several years, adopted a more restrictive
stance by raising short-term interest rates. Shortly before the end of the
fiscal year, these rate increases sparked a sell-off in the bond market,
causing prices to decline sharply.
Despite the market volatility, your fund produced a total return of 5.08% at
net asset value for the fiscal year, significantly ahead of the 2.47% return
for municipal bonds in general, as measured by the Lehman Brothers Municipal
Bond Index. The fund's 7.09% current dividend rate at net asset value would
have been the equivalent of an 11.74% current return on fully taxable
investments for investors in the maximum 39.6% federal income tax bracket.
While the subject of health care reform dominated the headlines during the
fiscal year, it had no direct impact on how we managed the portfolio. As we
analyzed the health care market, we continued to see reform taking place
throughout the country where hospital consolidations and managed care
programs are significantly reducing inefficiencies in the current system.
PURSUING OPPORTUNITY IN A VOLATILE MARKET
While we maintained the fund's investment strategy of capitalizing on
opportunities and efficiencies in the health care market, we also
4
<PAGE>
took measures to protect the fund from market volatility -- shortening the
average duration of the fund's fixed-income holdings, for example. Duration
measures a bond fund's sensitivity to interest rate movements. Since bond
prices fall when interest rates rise, any reduction in the fund's sensitivity
to such forces helps protect the value of the fund's assets.
STRICT CREDIT ANALYSIS DRIVES OUR DECISIONS
In-depth research and analysis continued to be the driving force behind our
investment decisions. Our approach is to analyze the health care environment in
key states such as California, Minnesota, Florida, and Michigan, select the
markets that hold the most promise within those states, and then scrutinize the
credit quality, funding sources, and prospects of a broad selection of bonds
before choosing the best prospects for investment.
This type of rigorous credit analysis has led to a number of attractive
additions to the portfolio over the period. Our research efforts in the
Chicago market brought Grant Hospital to our attention. When the hospital was
acquired by Columbia Health Care System, the nation's largest hospital
management company, Grant's bonds were prerefunded. Prerefunding occurs when
an issuer raises money to pay off a specific bond in advance and invests that
money in a secure investment, such as a Treasury bill, that matures at the
[ARTWORK APPEARS HERE]
CHART WITH CONCENTRATION BY STATE
<TABLE>
<S> <C>
CALIFORNIA 12.3%
PENNSYLVANIA 11.8
MASSACHUSETTS 10.1
TEXAS 9.8
ARIZONA 7.8
</TABLE>
5
<PAGE>
bond's maturity date. This added security is often perceived as a credit
upgrade by the market and can boost the bond's price. Following the
prerefunding, we were able to sell the bonds at a substantial profit.
Our credit analysis also led to the acquisition of bonds of the Friendly
Hills Health Care Network (FHHN) in La Habra, California. FHHN is an
integrated health care delivery system. This type of health care delivery
system combines a health maintenance organization (HMO), hospital, and other
medical facilities under one umbrella organization. FHHN is the first
organization to be established under a recent IRS ruling that allows
physician groups to develop comprehensive delivery systems, and the FHHN bond
issue is the first tax-exempt bond issue of its kind. FHHN has attracted the
attention of many health care policymakers, including Hillary Clinton. We
believe that the integrated health care system approach represents the
cutting edge of health care delivery in this country.
FOCUS ON HOSPITAL BONDS
At the end of the period, 94% of the fund's holdings were not-for-profit
hospital bonds. The rest of the portfolio was invested in HMOs, integrated
health care delivery systems, and nursing homes. Because most hospital
securities generally carry BBB ratings, about half of the securities in the
portfolio were in this rating category. The rest of the bonds were nearly evenly
divided among AAA-rated prerefunded bonds and BB-and B-rated bonds, for an
average quality rating of BBB at the end of the period.
LOOKING AHEAD
In general, we believe the economy will slow down from the pace set in the early
part of the year, and inflation will remain at a moderate level. While the Fed
may raise rates again in ongoing efforts to keep inflation in check, we believe
rates will stay relatively low by historic standards.
6
<PAGE>
TOP 10 HOLDINGS (5/31/94)
MASSACHUSETTS HEALTH AND EDUCATIONAL FACILITIES
AUTHORITY
MICHIGAN HOSPITAL FINANCING REVENUE BONDS
SIERRA VISTA, ARIZONA, INDUSTRIAL DEVELOPMENT AUTHORITY HOSPITAL REVENUE
BONDS
NEW YORK STATE MEDICAL CARE FACILITIES FINANCING AGENCY REVENUE BONDS
TULSA, OKLAHOMA, INDUSTRIAL AUTHORITY HOSPITAL REVENUE BONDS
CALIFORNIA HEALTH FACILITIES AUTHORITY REVENUE BONDS
KANSAS CITY, MISSOURI, INDUSTRIAL DEVELOPMENT AUTHORITY HEALTH FACILITIES
REVENUE BONDS
ALLEGHENY COUNTY, PENNSYLVANIA, HOSPITAL DEVELOPMENT AUTHORITY REVENUE BONDS
BEXAR COUNTY, TEXAS, HEALTH FACILITIES DEVELOPMENT CORP. REVENUE BONDS
ORANGE COUNTY, FLORIDA, HEALTH FACILITIES AUTHORITY REVENUE BONDS
These holdings represent 34.8% of the fund's net assets. Portfolio holdings
are subject to change.
Many health care organizations are already in the process of restructuring
the way they deliver health care, and we believe this trend toward reform
will present many attractive investment opportunities in the future. We will
continue to monitor health care reform efforts at both the state and federal
level. Painstaking research will continue to be a major ingredient in our
decision-making process as we seek new investments for the fund.
7
<PAGE>
PERFORMANCE SUMMARY
This section provides, at a glance, information about your fund's
performance. Total return shows how the value of the fund's shares changed
over time, assuming you held the shares through the entire period and
reinvested all distributions back into the fund. We show total return in two
ways: On a cumulative long-term basis and how the fund might have grown each
year, on average, over varying periods. For comparative purposes, we show how
the fund performed relative to appropriate indexes and benchmarks.
TOTAL RETURN FOR PERIODS ENDING 5/31/94
<TABLE>
<CAPTION>
Lehman Brothers Consumer
Market Muni Bond Price
NAV price Index Index
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 year 5.08% 6.46% 2.47% 2.29%
- -------------------------------------------------------------------------------
Life of fund* 18.58 10.46 12.84 5.21
Annual average 9.28 5.32 6.49 2.68
- -------------------------------------------------------------------------------
</TABLE>
TOTAL RETURN FOR PERIODS ENDING 6/30/94
(most recent calendar quarter)
<TABLE>
<CAPTION>
Market
NAV price
- -------------------------------------------------------------------------------
<S> <C> <C>
1 year 3.21% 4.99%
- -------------------------------------------------------------------------------
Life of fund* 18.16 11.42
Annual average 8.70 5.56
- -------------------------------------------------------------------------------
</TABLE>
* The fund began investment operations on 6/29/92. Performance data represent
past results. Investment returns and net asset value will fluctuate so an
investor's shares, when sold, may be worth more or less than their original
cost.
NET ASSET VALUE (NAV) is the value of all fund assets, minus liabilities,
divided by the number of outstanding shares.
MARKET PRICE is the current trading price of one share of the fund. Market
prices are set by transactions between buyers and sellers on the New York
Stock Exchange.
LEHMAN BROTHERS MUNICIPAL BOND INDEX is an unmanaged list of long-term fixed-
rate investment-grade tax-exempt bonds representative of the municipal bond
market. The index does not take into account brokerage commissions or other
costs, may include bonds different from those in the fund, and may pose
different risks than the fund.
CONSUMER PRICE INDEX is a commonly used measure of inflation. It does not
represent an investment return.
8
<PAGE>
Report of independent accountants
for the year ended May 31, 1994
To the Trustees and Shareholders of Putnam Tax-Free Health Care Fund
In our opinion, the accompanying statement of assets and liabilities,
including the portfolio of investments owned (except for bond ratings), and
the related statements of operations and of changes in net assets and the
financial highlights present fairly, in all material respects, the financial
position of Putnam Tax-Free Health Care Fund (the "fund") at May 31, 1994,
and the results of its operations, the changes in its net assets and the
financial highlights for the periods indicated, in conformity with generally
accepted accounting principles. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards, which require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits, which included confirmation of investments owned at
May 31, 1994 by correspondence with the custodian and brokers and the
application of alternative auditing procedures where confirmations from
brokers were not received, provide a reasonable basis for the opinion
expressed above.
Price Waterhouse LLP
Boston, Massachusetts
July 18, 1994
9
<PAGE>
PORTFOLIO OF INVESTMENTS OWNED
May 31, 1994
<TABLE>
<CAPTION>
MUNICIPAL BONDS AND NOTES(97.4%)(a)
PRINCIPAL AMOUNT RATINGS(b) VALUE
ARIZONA(7.8%)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 4,000,000 Payson, Indl. Dev. Auth. Hosp. Rev. Bonds
(Payson Regl. Med. Ctr. Inc. Project), 7.7s, 10/1/23 B/P $ 3,800,000
4,285,000 Pinal Cnty., Indl. Dev. Auth. Rev. Bonds
(Casa Grande Regl. Med. Ctr.), 9s, 12/1/13 BB/P 4,493,894
6,480,000 Sierra Vista, Indl. Dev. Auth. Hosp. Rev. Bonds
(Sierra Vista Cmnty. Hosp. Project), 8 1/2s, 12/1/21 BBB/P 7,030,800
------------
15,324,694
CALIFORNIA(12.3%)
- ----------------------------------------------------------------------------------------------------------------------
4,000,000 Berkeley, Hlth. Facs. Rev. Bonds
(Alta Bates Med. Ctr.), Ser. A, 6.55s, 12/1/22 Baa 3,685,000
CA Hlth. Facs. Auth. Rev. Bonds (Summit Med. Ctr.),
3,195,000 Ser. 85A, 9s, 5/1/15 Ba 3,294,844
2,215,000 Ser. A, 7 1/2s, 5/1/09 Ba 2,170,700
2,590,000 CA Hlth. Facs. Fin. Auth. Variable Rate Demand Notes
(VRDN)(St. Joseph Hlth. Syst.), Ser. A. 3.1s, 7/1/13 VMIG1 2,590,000
2,000,000 CA Statewide Cmntys. Dev. Auth. Certif. of Participation
(Childrens Hosp.), Municipal Bond Insurance Assn.
(MBIA), 6s, 6/1/12 AAA 1,987,500
4,000,000 La Habra, Certif. of Participation
(Friendly Hills Hlth. Care Foundation), Ser. A, 7.15s, 7/1/23 BB/P 3,930,000
2,200,000 Rancho Mirage, Joint Pwr. Fin. Auth. Certif. of
Participation
(Eisenhower Memorial Hosp.), 7s, 3/1/22 A 2,241,250
2,560,000 San Bernardino Hosp. Rev. Bonds
(San Bernardino, Cmnty. Hosp.), 7 7/8s, 12/1/08 Ba 2,582,400
2,000,000 Valley Hlth. Syst. Certif. of Participation
6 7/8s, 5/15/23 BB 1,867,500
-----------
24,349,194
CONNECTICUT(0.6%)
- ----------------------------------------------------------------------------------------------------------------------
1,200,000 CT Dev. Auth. Hlth. Care Rev. Bonds (AHF/Windsor Inc. Project),
Ser. A, 9 1/2s, 1/1/22 B/P 1,242,000
FLORIDA(5.8%)
- ----------------------------------------------------------------------------------------------------------------------
2,500,000 Cape Coral, Hlth. Fac. Auth. Hosp. Rev. Bonds
(Cape Coral Med. Ctr. Inc. Project), 7 1/2s, 11/15/21 Baa 2,587,500
2,000,000 Miami, Hlth. Facs. Auth. Rev. Bonds
(Cedars Med. Ctr.), Ser. A, 8 3/8s, 10/1/17 AAA/P 2,250,000
2,000,000 Orange Cnty., Hlth. Fac. Auth. 1st Mtge. Rev. Bonds
(Princeton Hosp.), 9s, 7/1/21 BA/P 2,120,000
2,600,000 Orange Cnty., Hlth. Fac. Auth. Residual Interest Bonds (RIBS),
Ser. 91-C, MBIA, 9.533s, 10/29/21 AAA 2,626,000
1,610,000 Palm Beach Cnty., Hlth. Fac. Auth. Rev. Bonds
(JFK Med. Ctr. Inc. Project), 8 7/8s, 12/1/18 AAA 1,787,100
-----------
11,370,600
ILLINOIS(3.6%)
- ----------------------------------------------------------------------------------------------------------------------
IL Dev. Fin. Auth. Rev. Bonds (Cmnty. Rehab. Providers Fac.),
2,410,000 8 3/4s, 7/1/11 BBB/P 2,434,100
915,000 8 3/4s, 3/1/10 BBB/P 936,731
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
MUNICIPAL BONDS AND NOTES
PRINCIPAL AMOUNT RATINGS(b) VALUE
ILLINOIS(continued)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
IL Hlth. Fac. Auth. Rev. Bonds
$ 2,750,000 (St. Elizabeth's Hosp.), 10 1/8s, 7/1/16 B/P $ 2,777,500
1,050,000 (Proctor Cmnty. Hosp. Project), 7 3/8s, 1/1/23 Baa 1,021,125
-----------
7,169,456
KENTUCKY(1.9%)
- ----------------------------------------------------------------------------------------------------------------------
2,000,000 Jefferson Cnty., Hosp. RIBS
(Alliant Hlth. Syst. Project), MBIA, 9.648s, 10/23/14 AAA 2,107,500
1,570,000 Muhlenberg Cnty., Hosp. Rev. Bonds
(Muhlenberg Cmnty. Hosp. Project), 9 1/2s, 8/1/10 BB/P 1,719,150
-----------
3,826,650
MARYLAND(2.4%)
- ----------------------------------------------------------------------------------------------------------------------
2,935,000 Berlin, Hosp. Rev. Bonds
(Atlantic Gen. Hosp. Fac.), 8 3/8s, 6/1/22 BB/P 3,078,081
2,100,000 MD State Hlth. & Higher Edl. Fac. Auth. Rev. Bonds
(Doctors Cmnty. Hosp.), 5 s, 7/1/24 Baa 1,724,625
-----------
4,802,706
MASSACHUSETTS(10.1%)
- ----------------------------------------------------------------------------------------------------------------------
3,950,000 Boston, Rev. Rfdg. Bonds Ser. B,
(City Hospital), 5 3/4s, 2/15/23 AAA 3,648,813
MA Hlth. & Edl. Fac. Auth. Rev. Bonds,
2,235,000 (St. Joseph's Hosp.), Ser. C, 9 1/2s, 10/1/20 AAA 2,718,319
3,300,000 (Waltham-Weston Hosp. & Med. Ctr.), Ser. B, 8 3/8s, 7/1/15 Baa 3,539,250
3,000,000 (Norwood Hosp.), Ser. E, 8s, 7/1/12 Baa 3,071,250
3,000,000 (Cooley Dickinson Hosp.), Ser. A, 7 1/8s, 11/15/18 BB/P 3,067,500
MA Indl. Fin. Agcy. Rev. Bonds
1,000,000 (Oddfellows Home), 9.6s, 1/1/15 BB/P 1,042,500
2,445,000 (Morton Hosp. & Med. Ctr.), Ser. A, 8 3/4s, 7/1/11 Aaa 2,882,044
-----------
19,969,676
MICHIGAN(7.8%)
- ----------------------------------------------------------------------------------------------------------------------
1,980,000 Detroit, Hosp. Fac. Fin. Auth. Rev. Bonds
(MI Hlth. Care Corp.), 10s, 12/1/20 B 2,076,525
55,000 Highland Park, Fin. Auth. Hosp. Fac. Rev. Bonds
(MI Hlth. Care Corp. Project), Ser. A, 9 3/4s, 12/1/06 B 56,719
MI Hosp. Fin. Auth. Rev. Bonds
4,500,000 (Garden City Hosp.), 8 1/2s, 9/1/17 Baa 4,781,250
5,530,000 (Port Huron Hosp.), Ser. A, 7 5/8s, 7/1/15 Baa 5,847,975
1,000,000 (Detroit-Macomb Hosp. Corp.), Ser. A, 7.3s, 6/1/01 B 990,000
Tawas City, Hosp. Fin. Auth. Rev. Bonds
1,465,000 (St. Joseph's Hosp. Project), Ser. A, 8 1/2s, 3/15/12 BB/P 1,554,731
-----------
15,307,200
MINNESOTA(2.2%)
- ----------------------------------------------------------------------------------------------------------------------
2,000,000 Minneapolis-St. Paul, Hsg. & Redev. Auth. Hlth. Care
Syst. Rev. Bonds (Group Hlth. Plan Inc. Project),
6.9s, 10/15/22 A 2,075,000
2,300,000 Rochester, Hlth. Care Fac. Rev. Bonds
(Olmsted Med. Group), 7 1/2s, 7/1/19 BB/P 2,236,750
-----------
4,311,750
MISSOURI(2.8%)
- ----------------------------------------------------------------------------------------------------------------------
5,000,000 Kansas City, Indl. Dev. Auth. Hlth. Fac. Rev. Bonds
(Park Lane Med. Ctr. Project), 8 3/4s, 1/1/15 BBB/P 5,437,500
</TABLE>
11
<PAGE>
<TABLE>
<CAPTION>
MUNICIPAL BONDS AND NOTES
PRINCIPAL AMOUNT RATINGS(b) VALUE
NEW HAMPSHIRE(1.0%)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 1,965,000 NH Higher Edl. & Hlth. Facs Auth. Rev. Bonds
(Alice Peck Day Memorial Hosp. Project),
9 3/8s, 11/1/20 BBB/P $ 2,026,406
NEW JERSEY(3.2%)
- ----------------------------------------------------------------------------------------------------------------------
3,000,000 NJ Econ. Dev. Auth. Rev. Bonds
(Ocean Nursing Pavilion), Ser. A, 7 3/8s, 12/1/25 BB/P 2,872,500
3,200,000 NJ Hlth. Care Fac. Fin. Auth. Rev. Bonds
(St. Elizabeth Hosp.), Ser. 90B, 8 1/4s, 7/1/20 Baa 3,420,000
-----------
6,292,500
NEW MEXICO(0.8%)
- ----------------------------------------------------------------------------------------------------------------------
1,375,000 Grant Cnty., Hosp. Fac. Rev. Bonds
(Gila Regl. Med. Ctr. Project), 10s, 2/1/12 BBB/P 1,493,594
NEW YORK(2.9%)
- ----------------------------------------------------------------------------------------------------------------------
NY State Med. Care Fac. Fin. Agcy. Rev. Bonds
(Mental Hlth. Svcs. Fac.), Ser. B
2,135,000 7 7/8s, 8/15/20 Baa 2,385,863
2,810,000 7 7/8s, 8/15/20 AAA 3,277,163
-----------
5,663,026
OHIO(1.2%)
- ----------------------------------------------------------------------------------------------------------------------
Holland, Indl. Dev. Mtge. Rev. Bonds
2,136,359 (Spring Meadow Extended Care Project),
Federal Housing Authority (FHA) Insd., 11s, 4/15/13 A/P 2,374,029
OKLAHOMA(2.8%)
- ----------------------------------------------------------------------------------------------------------------------
Tulsa, Indl. Auth. Hosp. Rev. Bonds (Tulsa Regional Med. Ctr.)
2,395,000 Ser. A, 7 5/8s, 6/1/17 BBB 2,514,750
3,000,000 7.2s, 6/1/17 BBB 3,075,000
-----------
5,589,750
PENNSYLVANIA(11.8%)
- ----------------------------------------------------------------------------------------------------------------------
Allegheny Cnty., Hosp. Dev. Auth. Rev. Bonds
1,000,000 (Divine Providence Hosp.), Ser. A, 8 3/4s, 1/1/14 BBB 1,072,500
3,000,000 (Divine Providence Hosp.), Ser. B, 8 3/4s, 1/1/14 BBB 3,217,500
1,000,000 (Southside Hosp.-Pittsburgh), Ser. A, 8 3/4s, 6/1/10 BBB 1,050,000
2,260,000 Chartiers Valley, Indl. & Coml. Dev. Auth. Rev. Bonds
(Beverly Enterprises Project), 6 1/2s, 2/1/07 BB/P 2,155,475
3,685,000 College Township, Indl. Dev. Auth. 1st Mtge. Hlth.
Facs. Rev. Bonds (Nittany Valley Rehab. Hosp. Project),
7 5/8s, 11/1/07 BBB/P 3,740,275
1,800,000 Lebanon Cnty., Hosp. Auth. Rev. Bonds
(Good Samaritan Hosp.), Ser. B, 8 1/4s, 11/1/18 BBB 2,083,500
2,000,000 Montgomery Cnty., Higher Edl. & Hlth. Auth. Hosp. Rev.
Bonds (UTD Hosp. Project), Ser. B, 8 3/8s, 11/1/11 Ba 2,092,500
2,950,000 Philadelphia Hosp. & Higher Ed. Fac. Auth. Hosp. RIBS
7.767s, 3/6/12 AAA 2,400,563
2,500,000 Washington Cnty., Hosp. Auth. Rev. Bonds
(Canonsburg Gen. Hosp. Project), 7.35s, 6/1/13 BB/P 2,353,125
3,030,000 York Cnty., Indl. Dev. Auth. 1st Mtge. Hlth. Fac. Rev. Bonds
(Rehabilitation Hosp. of York Project), 7 1/2s, 9/1/07 BBB/P 3,056,513
-----------
23,221,951
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
MUNICIPAL BONDS AND NOTES
PRINCIPAL AMOUNT RATINGS(b) VALUE
TENNESSEE(0.7%)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 1,313,596 Meigs Cnty., Hlth. Edl. & Hsg. Fac. Board Rev. Bonds
(Meigs Cnty. Hlth. Ctr.), FHA Insd., 12s, 7/15/25 A/P $ 1,438,384
TEXAS(9.8%)
- ----------------------------------------------------------------------------------------------------------------------
1,000,000 Amarillo, Hlth. Fac. Hosp. Corp. RIBS
(High Plains Baptist Hosp.), 9.672s, 1/3/22 AAA 1,020,000
5,000,000 Bexar Cnty., Hlth. Fac. Dev. Corp. Rev. Bonds
(St. Lukes Lutheran Hosp. Project), 7.9s, 5/1/11 Baa 5,318,750
1,085,000 Cherokee Cnty., Hlth. Fac. Dev. Corp. Rev. Bonds
(Nancy Travis Memorial Hosp. Project), 10s, 5/15/13 B/P 1,154,169
3,000,000 Harris Cnty., Hlth. Fac. Dev. Corp. Rev. Bonds
(Memorial Hosp.), Ser. A. 6 5/8s, 6/1/24 A 3,000,000
1,680,000 Montgomery Cnty., Hlth. Fac. Dev. Corp. Rev. Bonds
(Woodlands Med. Ctr. Project), 8.85s, 8/15/14 BB/P 1,816,500
2,000,000 North Central TX Hlth. Fac. Dev. Corp. RIBS
(Baylor Hlth. Care Syst.), Ser. B, 8.42s, 5/15/08 AA 2,125,000
3,500,000 Northeast Hosp. Auth. Rev. Bonds
(Northeast Med. Ctr. Hosp.), Ser. B, Financial
Guaranty Insurance Co. (FGIC), 7 1/4s, 7/1/22 Baa 3,482,500
1,415,000 Tarrant Cnty., Hlth. Facs. Dev. Corp. Hosp. Rev. Bonds
(Cmnty. Hlth. Care Foundation Inc. Project), 10 1/8s, 4/1/21 B/P 1,489,288
-----------
19,406,207
VIRGINIA(2.6%)
- ----------------------------------------------------------------------------------------------------------------------
1,000,000 Fairfax Cnty., Indl. Dev. Auth. RIBS
(Fairfax Hosp. Syst.), Ser. C, 10.327s, 8/29/23 AA 1,198,750
4,000,000 Roanoke, Indl. Dev. Auth. Hosp. RIBS
(Roanoke Memorial Hosp.), Ser. B, MBIA, 8.38s, 7/1/20 AAA 3,975,000
-----------
5,173,750
WASHINGTON(1.3%)
- ----------------------------------------------------------------------------------------------------------------------
2,250,000 Grant Cnty., Pub. Hosp. Dist. No. 1 Rev. Bonds
(Samaritan Hosp.), 9 1/4s, 9/1/10 BBB/P 2,497,500
WEST VIRGINIA(2.0%)
- ----------------------------------------------------------------------------------------------------------------------
4,000,000 WV State Hosp. Fin. Auth. Hosp. Rev. Bonds
(St. Francis Hosp.-Charleston), 7 3/4s, 8/15/13 B 3,900,000
Total Investments (cost $189,612,815) (c) $192,188,523
============
</TABLE>
(a) Percentages indicated are based on net assets of $197,325,888, which
correspond to a net asset value per share of $14.29.
(b) The Moody's or Standard & Poor's ratings indicated are believed to be the
most recent ratings available at May 31, 1994 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, 1994. Securities rated
by Putnam are indicated by "/P" and are not publicly rated. Ratings are not
covered by the Report of Independent Accountants.
(c) The aggregate identified cost for federal income tax purposes is
$189,612,815, resulting in gross unrealized appreciation and depreciation of
$5,510,542 and $2,934,834 respectively, or net unrealized appreciation of
$2,575,708.
The rates shown on Variable Rate Demand Notes (VRDN) and Residual Interest
Bonds (RIBS) are the current interest rates at May 31, 1994, which are
subject to change based on the terms of the security.
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
May 31, 1994
<TABLE>
<S> <C>
ASSETS
- ------------------------------------------------------------------------------
Investments in securities, at value
(identified cost $189,612,815) (Note 1) $192,188,523
- ------------------------------------------------------------------------------
Cash 101,085
- ------------------------------------------------------------------------------
Interest receivable 4,543,285
- ------------------------------------------------------------------------------
Receivable for securities sold 3,099,389
- ------------------------------------------------------------------------------
Unamortized organization expenses (Note 1) 25,337
- ------------------------------------------------------------------------------
Total assets $199,957,619
- ------------------------------------------------------------------------------
LIABILITIES
- ------------------------------------------------------------------------------
Distributions payable to shareholders $ 1,163,440
- ------------------------------------------------------------------------------
Payable for securities purchased 1,055,196
- ------------------------------------------------------------------------------
Payable for compensation of Manager (Note 3) 345,084
- ------------------------------------------------------------------------------
Payable for compensation of Trustees (Note 3) 197
- ------------------------------------------------------------------------------
Payable for investor servicing and custodian fees (Note 3) 57,650
- ------------------------------------------------------------------------------
Payable for administrative services (Note 3) 1,518
- ------------------------------------------------------------------------------
Other accrued expenses 8,646
- ------------------------------------------------------------------------------
Total liabilities 2,631,731
- ------------------------------------------------------------------------------
Net Assets $197,325,888
- ------------------------------------------------------------------------------
REPRESENTED BY
Paid-in capital $191,832,474
- ------------------------------------------------------------------------------
Undistributed net investment income 1,007,645
- ------------------------------------------------------------------------------
Accumulated net realized gain on investments 1,910,061
- ------------------------------------------------------------------------------
Net unrealized appreciation of investments 2,575,708
- ------------------------------------------------------------------------------
Total--Representing net assets applicable to
capital shares outstanding $197,325,888
- ------------------------------------------------------------------------------
COMPUTATION OF NET ASSET VALUE
Net asset value, per share ($197,325,888 divided by
13,807,168 shares) $14.29
- ------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
STATEMENT OF OPERATIONS
Year ended May 31, 1994
<TABLE>
<S> <C>
- ------------------------------------------------------------------------------
TAX EXEMPT INTEREST INCOME $15,399,643
- ------------------------------------------------------------------------------
EXPENSES:
- ------------------------------------------------------------------------------
Compensation of Manager (Note 3) $ 1,436,467
- ------------------------------------------------------------------------------
Investor servicing and custodian fees (Note 3) 289,008
- ------------------------------------------------------------------------------
Compensation of Trustees (Note 3) 12,915
- ------------------------------------------------------------------------------
Reports to shareholders 22,519
- ------------------------------------------------------------------------------
Postage 15,176
- ------------------------------------------------------------------------------
Auditing 27,356
- ------------------------------------------------------------------------------
Legal 5,799
- ------------------------------------------------------------------------------
Administrative services (Note 3) 6,728
- ------------------------------------------------------------------------------
Amortization of organization expenses (Note 1) 8,395
- ------------------------------------------------------------------------------
Registration fees 639
- ------------------------------------------------------------------------------
Exchange listing fees 26,311
- ------------------------------------------------------------------------------
Other expenses 4,710
- ------------------------------------------------------------------------------
Total expenses 1,856,023
- ------------------------------------------------------------------------------
Net investment income 13,543,620
- ------------------------------------------------------------------------------
Net realized gain on investments (Notes 1 and 4) 3,171,219
- ------------------------------------------------------------------------------
Net unrealized depreciation of investments
during the year (6,258,248)
- ------------------------------------------------------------------------------
Net loss on investments (3,087,029)
- ------------------------------------------------------------------------------
Net increase in net assets resulting from operations $10,456,591
- ------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the period
June 29, 1992
(commencement
For the year of operations)
ended May 31 to May 31
- -------------------------------------------------------------------------------
1994 1993
INCREASE (DECREASE)IN NET ASSETS
- -------------------------------------------------------------------------------
<S> <C> <C>
Operations:
- -------------------------------------------------------------------------------
Net investment income $ 13,543,620 $ 13,105,010
- -------------------------------------------------------------------------------
Net realized gain on investments 3,171,219 2,238,349
- -------------------------------------------------------------------------------
Net unrealized appreciation (depreciation)
of investments (6,258,248) 8,833,956
- -------------------------------------------------------------------------------
Net increase in net assets
resulting from operations 10,456,591 24,177,315
- -------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
- -------------------------------------------------------------------------------
Net investment income (13,984,155) (11,656,830)
- -------------------------------------------------------------------------------
Net realized gain on
investments (2,554,233) (945,274)
- -------------------------------------------------------------------------------
Increase from capital share
transactions (Note 2) -- 191,732,474
- -------------------------------------------------------------------------------
Total (decrease) increase in net assets (6,081,797) 203,307,685
NET ASSETS:
- -------------------------------------------------------------------------------
Beginning of year 203,407,685 100,000
- -------------------------------------------------------------------------------
End of period (including undistributed
net investment income of $1,007,645 and
$1,448,180, respectively) $197,325,888 $203,407,685
- -------------------------------------------------------------------------------
NUMBER OF FUND SHARES
- -------------------------------------------------------------------------------
Shares outstanding at beginning of period 13,807,168 7,168
- -------------------------------------------------------------------------------
Shares issued in connection with
initial offering -- 13,800,000
- -------------------------------------------------------------------------------
Shares outstanding at end of period 13,807,168 13,807,168
- -------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
For the period
June 29, 1992
(commencement
Year ended of operations) to
May 31 May 31
- ------------------------------------------------------------------------------
1994 1993*
- ------------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period $14.73 $13.89
- ------------------------------------------------------------------------------
Investment Operations
Net Investment Income .98 .95(a)
- ------------------------------------------------------------------------------
Net Realized and Unrealized
Gain (Loss) on Investments (.22) .80
- ------------------------------------------------------------------------------
Total from Investment Operations .76 1.75
- ------------------------------------------------------------------------------
Less Distributions from:
Net Investment Income (1.01) (.84)
- ------------------------------------------------------------------------------
Net Realized Gain on Investments (Note 1) (.19) (.07)
- ------------------------------------------------------------------------------
Total Distributions (1.20) (.91)
- ------------------------------------------------------------------------------
Net Asset Value, End of Period $14.29 $14.73
- ------------------------------------------------------------------------------
Market Value, End of Period $14.375 $14.625
- ------------------------------------------------------------------------------
Total Investment Return at
Market Value (%) (b) 6.46 4.08(c)
- ------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $197,326 $203,408
- ------------------------------------------------------------------------------
Ratio of Expenses to Average
Net Assets (%) .91 .53(a)(c)
- ------------------------------------------------------------------------------
Ratio of Net Investment Income
to Average Net Assets (%) 6.58 7.27(a)(c)
- ------------------------------------------------------------------------------
Portfolio Turnover (%) 36.92 69.11(d)
- ------------------------------------------------------------------------------
</TABLE>
* Represents initial net asset value of $13.95 less offering expenses of
approximately $0.06.
(a) Reflects a voluntary absorption of expenses incurred by the Fund. As a
result of this limitation, expenses for the period May 31, 1993 reflects a
reduction of $0.05 per share. See Note 3.
(b) Total Investment return assumes dividend reinvestment and does not
reflect the effect of sales charges.
(c) Annualized.
(d) Not annualized.
17
<PAGE>
NOTES TO FINANCIAL STATEMENTS
May 31, 1994
NOTE 1
SIGNIFICANT ACCOUNTING POLICIES
The fund is registered under the Investment Company Act of 1940, as amended,
as a diversified, closed-end management investment company. The fund seeks as
high a level of current income exempt from federal income tax as Putnam
Management believes is consistent with preservation of capital by investing
primarily in a portfolio of health care tax-exempt securities.
The following is a summary of significant accounting policies consistently
followed by the fund in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles.
A SECURITY VALUATION Tax-exempt bonds and notes are stated on the basis of
valuations provided by a pricing service, approved by the Trustees, which uses
information with respect to transactions in bonds, quotations from bond dealers,
market transactions in comparable securities and various relationships between
securities in determining value. The fair value of restricted securities is
determined by the Manager following procedures approved by the Trustees and such
valuations and procedures as reviewed periodically by Trustees.
B SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME Security transactions are
accounted for on the trade date (date the order to buy or sell is executed).
Interest income is recorded on the accrual basis.
C FEDERAL TAXES It is the policy of the fund to distribute all of its income
within the prescribed time and otherwise comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies. It is also
the intention of the fund to distribute an amount sufficient to avoid imposition
of any excise tax under Section 4982 of the Internal Revenue Code of 1986.
Therefore, no provision has been made for federal taxes on income, capital gains
or unrealized appreciation of securities held and excise tax on income and
capital gains.
D DISTRIBUTIONS TO SHAREHOLDERS Distributions to shareholders are recorded by
the fund on the ex-dividend date.
E AMORTIZATION OF BOND PREMIUM AND DISCOUNT Any premium resulting from the
purchase of securities in excess of maturity value is amortized on a yield-to-
maturity basis. Discount on zero-coupon bonds is accreted according to the
effective yield method.
F UNAMORTIZED ORGANIZATION EXPENSES Expenses incurred by the fund in connection
with its organization and its registration with the Securities and Exchange
Commission and with various states, aggregated $41,646. These expenses are being
amortized over a five-year period based on a straight line basis.
NOTE 2
INITIAL CAPITALIZATION AND
OFFERING OF SHARES
The fund was established as a Massachusetts business trust under the law of the
Commonwealth of Massachusetts on May 1, 1992. During the period May 1, 1992 to
June 26, 1992 the fund had no operations other than those related to
organizational matters, including the initial capital contribution of $100,000
and the
18
<PAGE>
issuance of 7,168 shares to Putnam Mutual Funds Corp., a wholly-owned
subsidiary of Putnam Investments, Inc. on June 15, 1992.
On June 26, 1992, the fund completed the initial offering of 12,000,000 of
its shares for which it received net proceeds of $166,622,474, after
deducting $777,526 of initial offering expenses. Such offering expenses were
paid initially by Putnam Management. On July 27, 1992, the fund received net
proceeds of $25,110,000 from the supplementary offering of 1,800,000 shares.
Regular investment operations commenced on June 29, 1992.
NOTE 3
MANAGEMENT FEE,
ADMISTRATIVE
SERVICES, AND
OTHER TRANSACTIONS
Compensation of Putnam Investment Management, Inc. ("Putnam Investment"), the
fund's Manager, a wholly-owned subsidiary of Putnam Investments, Inc., for
management and investment advisory services is paid quarterly based on the
average net assets of the fund. Effective December 19, 1992, such fee is
based on the annual rate of 0.70% of average weekly net assets. Prior to
December 19, 1992 the Manager had voluntarily agreed to waive its management
fee.
The fund also reimburses the Manager for the compensation and related
expenses of certain officers of the fund and their staff who provide
administrative services to the fund. The aggregate amount of all such
reimbursements is determined annually by the Trustees. For the year ended May
31, 1994, the fund paid $6,728 for these services.
Trustees of the fund receive an annual Trustee's fee of $800 and an
additional fee for each Trustees' meeting attended. Trustees who are not
interested persons of the Manager and who serve on committees of the Trustees
receive additional fees for attendance at certain committee meetings.
Custodial functions for the fund are provided by Putnam Fiduciary Trust
Company (PFTC), a subsidiary of Putnam Investments, Inc. Investor servicing
agent functions are provided by Putnam Investor Services, a division of PFTC.
Fees paid for these investor servicing and custodial functions for the year
ended May 31, 1994 amounted to $289,008.
Investor servicing and custodian fees reported in the Statement of operations
for the year ended May 31, 1994 have been reduced by credits allowed by PFTC.
NOTE 4
PURCHASES AND
SALES OF SECURITIES
During the year ended May 31, 1994, purchases and sales of investment
securities other than short-term municipal obligation aggregated $74,877,358
and $91,367,021 respectively. Purchases and sales of short-term municipal
obligations aggregated $10,680,000 and $8,890,000 respectively. In
determining the net gain or loss on securities sold, the cost of securities
has been determined on the identified cost basis.
19
<PAGE>
SELECTED QUARTERLY DATA
(UNAUDITED)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------
Three months ended
- -------------------------------------------------------------------------------------------
May 31 February 28 November 30 August 31
- -------------------------------------------------------------------------------------------
1994 1994 1993 1993
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TOTAL INVESTMENT
INCOME
Total $ 3,775,827 $ 3,833,864 $ 3,883,176 $ 3,906,776
Per share $ .27 $ .28 $ .27 $ .29
- -------------------------------------------------------------------------------------------
NET INVESTMENT
INCOME
Total $ 3,339,676 $ 3,373,354 $ 3,414,063 $ 3,416,527
Per share $ .24 $ .25 $ .24 $ .25
- -------------------------------------------------------------------------------------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Total $ (8,917,744) $ (264,663) $ 1,802,283 $ 4,293,095
Per share $ (.65) $ (.02) $ .14 $ .31
- -------------------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN ASSETS RESULTING FROM
OPERATIONS
Total $ (5,578,068) $ 3,108,691 $ 5,216,346 $ 7,709,622
Per share $ (.41) $ .23 $ .38 $ .56
- -------------------------------------------------------------------------------------------
NET ASSETS AT THE
END OF THE PERIOD
Total $197,325,888 $206,407,850 $209,341,170 $207,629,192
Per share $ 14.29 $ 14.95 $ 15.16 $ 15.04
- -------------------------------------------------------------------------------------------
</TABLE>
20
<PAGE>
<TABLE>
<CAPTION>
For the period
June 29, 1992
- -------------------------------------------------------------------------------------------
(commencement
of operations) to
- -------------------------------------------------------------------------------------------
May 31 February 28 November 30 August 31
- -------------------------------------------------------------------------------------------
1993 1993 1992 1992
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TOTAL INVESTMENT
INCOME
Total $ 3,880,955 $ 3,867,862 $ 3,893,481 $ 2,419,259
Per share $ .28 $ .28 $ .29 $ .17
- -------------------------------------------------------------------------------------------
NET INVESTMENT
INCOME
Total $ 3,414,250 $ 3,540,227 $ 3,765,663 $ 2,384,870
Per share $ .25 $ .25 $ .28 $ .17
- -------------------------------------------------------------------------------------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Total $ (1,139,899) $ 8,705,014 $ (57,854) $ 3,565,044
Per share $ (.08) $ .63 $ (.01) $ .26
- -------------------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN ASSETS RESULTING FROM
OPERATIONS
Total $ 2,274,351 $ 12,245,241 $ 3,707,809 $ 5,949,914
Per share $ .17 $ .88 $ .27 $ .43
- -------------------------------------------------------------------------------------------
NET ASSETS AT THE
END OF THE PERIOD
Total $203,407,685 $204,627,026 $196,953,640 $196,620,029
Per share $ 14.73 $ 14.82 $ 14.26 $ 14.24
- -------------------------------------------------------------------------------------------
</TABLE>
21
<PAGE>
FEDERAL TAX INFORMATION
The fund has designated all net investment income distributions paid during the
fiscal year as exempt-interest dividends. Thus, 100% of these distributions are
exempt from federal income tax and personal income tax. The fund also paid a
short-term capital gain of $0.185. The Form 1099 you will receive in January
1995 will tell you the tax status of any distributions paid to your account in
calendar 1994. The income earned from each state will also be reported to you at
this time.
22
<PAGE>
FUND INFORMATION
INVESTMENT MANAGER
Putnam Investment
Management, Inc.
One Post Office Square
Boston, MA 02109
MARKETING SERVICES
Putnam Mutual Funds Corp.
One Post Office Square
Boston, MA 02109
CUSTODIAN
Putnam Fiduciary Trust Company
LEGAL COUNSEL
Ropes & Gray
INDEPENDENT ACCOUNTANTS
Price Waterhouse
TRUSTEES
George Putnam, Chairman
William Pounds, Vice Chairman
Jameson Adkins Baxter
Hans H. Estin
John A. Hill
Elizabeth T. Kennan
Lawrence J. Lasser
Donald S. Perkins
Robert E. Patterson
George Putnam, III
A.J.C. Smith
W. Nicholas Thorndike
OFFICERS
George Putnam
President
Charles E. Porter
Executive Vice President
Patricia C.Flaherty
Senior Vice President
Lawrence J. Lasser
Vice President
Gordon H. Silver
Vice President
Gary N. Coburn
Vice President
James E. Erickson
Vice President
Howard K. Manning
Vice President and Fund Manager
William N. Shiebler
Vice President
John R. Verani
Vice President
Paul O'Neil
Vice President
John D. Hughes
Vice President and Treasurer
Beverly Marcus
Clerk and Assistant Treasurer
This report is for the information of shareholders of Putnam Tax-Free Health
Care 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.
23
<PAGE>
PUTNAM INVESTMENTS Bulk Rate
U.S. Postage Paid
THE PUTNAM FUNDS Boston, MA
One Post Office Square Permit No. 53749
Boston, Massachusetts 02109
168-12998
