Putnam
Investment Grade
Municipal Trust III
ANNUAL REPORT ON PERFORMANCE AND OUTLOOK
10-31-00
[SCALE LOGO OMITTED]
FROM THE TRUSTEES
[GRAPHIC OMITTED: PHOTO OF JOHN A. HILL AND GEORGE PUTNAM III]
Dear Shareholder:
It is a pleasure to greet you in our new roles as Chairman of the
Trustees and President of the Funds. As you know, both of us have been
members of the Board of Trustees for a number of years -- years during
which the global securities markets, the mutual fund industry, and
Putnam itself have experienced tremendous growth and change.
As we look to the future, we are certain that the changes will be
breathtaking in their scope. What will not change is the Trustees'
dedication to serving the best interests of our shareholders.
We welcome the challenges that lie ahead and are confident that Putnam
and your Board will continue to face those challenges successfully as
they have for more than 60 years. We look forward to helping you meet
your financial objectives for many years to come.
Respectfully yours,
/S/ JOHN A. HILL /S/ GEORGE PUTNAM, III
John A. Hill George Putnam, III
Chairman of the Trustees President of the Funds
December 20, 2000
REPORT FROM FUND MANAGEMENT
Richard P. Wyke
This year, investors were reminded of a basic principle of investing:
when the financial markets turn around, they move so fast that those who
are not already positioned in the recovering sector are often too late
to benefit. After the Nasdaq plunged in March, setting off a long string
of declines in other equity markets, bonds suddenly were the place to
be. The municipal bond market had begun to anticipate the beginning of a
slowdown in the economy -- and delivered better performance to investors
who had maintained their positions, including investors in Putnam
Investment Grade Municipal Trust III.
Total return for 12 months ended 10/31/00
NAV Market price
-----------------------------------------------------------------------
9.84% 10.27%
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Past performance is no indication of future results. Performance
information for longer periods begins on page 5.
* INVESTMENT GRADE SECTOR PERFORMED WELL
During the second half of the past twelve months, we saw positive total
returns as interest rates in the municipal market have fallen. The
investment grade and AAA/Aaa-rated sectors of the municipal market
benefited the most. As a result, we witnessed a dramatic difference in
yield between the highest-rated and lowest-rated municipal bonds (known
as credit yield spread). As spreads widened, your fund benefited because
its portfolio comprised roughly 98% investment-grade bonds, including
38.1% AAA/Aaa-rated bonds.
As investors moved into the higher-quality municipal bonds, pushing up
their prices, the prices of lower-rated bonds lagged. This price drop
created an unusual opportunity for us to invest in a greater number of
lower-rated investment grade bonds (BBB/Baa) at undervalued prices, with
the goal of increasing the fund's income level. However, it is important
to note that we are looking for well-known bonds, issues that have
provided solid disclosure to potential investors. Our strategy will be
especially beneficial if credit yield spreads begin to narrow, as we
believe they will. At this stage, credit selection becomes extremely
important, and depends on the most meticulous research efforts on the
part of Putnam's analytical team.
[GRAPHIC OMITTED: horizontal bar chart TOP INDUSTRY SECTORS]
TOP INDUSTRY SECTORS*
Health care 24.1%
Transportation 18.9%
Utilities 18.2%
Water
and sewer 17.6%
Housing 5.0%
Footnote reads:
*Based on net assets as of 10/31/00. Holdings will vary over time.
* EXPOSURE TO TRANSPORTATION SECTOR PAYS OFF
Your fund has a healthy exposure to the transportation sector,
particularly the airline industry, which has had a fairly profitable
year despite significant fuel cost increases. One of the fund's longtime
holdings is American Airlines (Dallas-Fort Worth International Airport
Facility), which continues to post strong net profits based on
unwavering passenger demand and high capacity despite the high cost of
oil.
Airports, like airlines, are also continuing to expand to meet higher
carrier and passenger needs. Airlines are flying into more and more
smaller regional airports like Providence, Rhode Island and Manchester,
New Hampshire, thereby adding to airport revenues. Bonds issued by a
well-known airport in a larger city, The Denver City & County Airport,
have been upgraded this year by all three major rating agencies
(Standard & Poor's, Moody's, and Fitch). The Denver airport's debt
service coverage remains strong and passenger traffic continues to
surpass record levels, conditions that explain why these bonds performed
well within your fund's portfolio.
[GRAPHIC OMITTED: pie chart CREDIT QUALITY OVERVIEW]
CREDIT QUALITY OVERVIEW*
AAA/Aaa -- 38.1%
AA/Aa -- 7.0%
A -- 27.1%
BBB/Baa -- 25.6%
BB -- 2.2%
Footnote reads:
*As a percentage of market value as of 10/31/00. A bond rated BBB/Baa or
higher is considered investment grade. All ratings reflect Moody's
descriptions unless noted otherwise; percentages may include unrated
bonds considered by Putnam Management to be of comparable quality. Ratings
will vary over time.
Revenue bonds issued to support toll roads continue to attract interest
from investors. They offer relatively high yields, because of slightly
higher risks from uncertainties surrounding construction and traffic
flows. There is one relatively new bond-financed toll road project in
Colorado that we believe offers excellent performance potential. Known
as the E-470 Public Highway, the project involves the extension of an
existing toll road to loop around the eastern side of Denver. When
complete, it will improve access to the Denver International Airport
from the north. Issued by the Colorado Public Highway Authority, the
bonds are rated BBB- by Standard & Poor's and Baa3 by Moody's. Another
toll road bond that has performed well was issued by the Connector 2000
Association, Inc. to build an eastern highway loop around Greenville,
South Carolina. This toll road will improve access to the Greenville
airport. This project is ahead of schedule and expected to be open to
traffic in early 2001. While this holding and others discussed in this
report were viewed favorably as of October 31, 2000, all holdings are
subject to review in accordance with the fund's investment strategy and
may vary in the future.
* OUTLOOK FOR PERFORMANCE
The supply of municipal bonds has been notably light over the past
several months, both in terms of new issues and within the secondary
market. Because of the strong economy, state and local governments are
flush with revenues and have little reason to issue new bonds. This
light supply in the face of improved demand should help municipal bond
performance in the months ahead.
Recent economic reports indicated that the U.S economy is still
healthy, but growing more slowly than earlier in the year. The Fed did
not raise interest rates in November and the odds are good it will move
to a neutral bias if the equity markets remain volatile. Inflation seems
to be tame, projected to be in the 3% to 4% range. If performance
improves in the municipal bond market, the investments in your fund,
especially the bonds at the lower end of the investment-grade spectrum,
may offer the opportunity for increased tax-exempt income and potential
price appreciation.
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 10/31/00, there is no guarantee the fund
will continue to hold these securities in the future.
PERFORMANCE SUMMARY
This section provides information about your fund's performance, which
should always be considered in light of its investment strategy. Putnam
Investment Grade Municipal Trust III is designed for investors seeking
high current income free from federal income tax, consistent with
preservation of capital.
TOTAL RETURN FOR PERIODS ENDED 10/31/00
Lehman Brothers
Market Municipal Consumer
NAV price Bond Index price index
-------------------------------------------------------------------------------
1 year 9.84% 10.27% 8.51% 3.45%
-------------------------------------------------------------------------------
5 years 30.99 27.82 32.05 13.14
Annual average 5.55 5.03 5.72 2.50
-------------------------------------------------------------------------------
Life of fund
(since 11/29/93) 40.10 14.77 46.37 19.27
Annual average 4.99 2.01 5.66 2.58
-------------------------------------------------------------------------------
Past performance is no assurance of future results. More recent returns
may be more or less than those shown. They do not take into account any
adjustment for taxes payable on reinvested distributions. Investment
returns, net asset value, and market price will fluctuate so that an
investor's shares when redeemed may be worth more or less than their
original cost.
PRICE AND DISTRIBUTION INFORMATION 12 MONTHS ENDED 10/31/00
-------------------------------------------------------------------------------
Distributions from common shares
-------------------------------------------------------------------------------
Number 12
-------------------------------------------------------------------------------
Income $0.7380
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Capital gains1 --
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Total $0.7380
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Preferred shares Series A (200 shares)
-------------------------------------------------------------------------------
Income $2,001.43
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Capital gains1 --
-------------------------------------------------------------------------------
Total $2,001.43
-------------------------------------------------------------------------------
Share value (common shares) NAV Market price
-------------------------------------------------------------------------------
10/31/99 $12.24 $10.688
-------------------------------------------------------------------------------
10/31/00 12.55 11.00
-------------------------------------------------------------------------------
Current
dividend
rate2 5.88% 6.71%
-------------------------------------------------------------------------------
Taxable
equivalent3 9.74 11.11
-------------------------------------------------------------------------------
1 Capital gains, if any, are taxable for federal and, in most cases,
state tax purposes. For some investors, investment income may also be
subject to the federal alternative minimum tax. Investment income may be
subject to state and local taxes.
2 Income portion of most recent distribution, annualized and divided by
NAV or 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.
TOTAL RETURN FOR PERIODS ENDED 9/30/00 (most recent calendar quarter)
Market
NAV price
----------------------------------------------------------------------------
1 year 6.89% 9.62%
----------------------------------------------------------------------------
5 years 31.45 30.66
Annual average 5.62 5.49
----------------------------------------------------------------------------
Life of fund
(since 11/29/93) 38.32 15.43
Annual average 4.86 2.12
----------------------------------------------------------------------------
Past performance is no assurance of future results. More recent returns
may be more or less than those shown. They do not take into account any
adjustment for taxes payable on reinvested distributions. Investment
returns and principal value will fluctuate so that an investor's shares
when sold may be worth more or less than their original cost.
TERMS AND DEFINITIONS
Total return shows how the value of the fund's shares changed over time,
assuming you held the shares through the entire period and reinvested
all distributions in the fund.
Net asset value (NAV) is the value of all your fund's assets, minus any
liabilities and the net assets allocated to remarketed preferred shares,
divided by the number of outstanding common 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.
COMPARATIVE BENCHMARKS
Lehman Brothers Municipal Bond Index is an unmanaged list of long-term
fixed-rate investment-grade tax-exempt bonds representative of the
municipal bond market. This index assumes reinvestment of all
distributions and interest payments and does not take into account
brokerage fees or taxes. Securities in the fund do not match those in
the index and performance of the fund will differ. It is not possible to
invest directly in an index.
Consumer price index (CPI) is a commonly used measure of inflation; it
does not represent an investment return.
A GUIDE TO THE FINANCIAL STATEMENTS
These sections of the report, preceded by the Report of independent
accountants, constitute the fund's financial statements.
The fund's portfolio lists all the fund's investments and their values
as of the last day of the reporting period. Holdings are organized by
asset type and industry sector, country, or state to show areas of
concentration and diversification.
Statement of assets and liabilities shows how the fund's net assets and
share price are determined. All investment and noninvestment assets are
added together. Any unpaid expenses and other liabilities are
subtracted from this total. The result is divided by the number of
shares to determine the net asset value per share, which is calculated
separately for each class of shares. (For funds with preferred shares,
the amount subtracted from total assets includes the net assets
allocated to remarketed preferred shares.)
Statement of operations shows the fund's net investment gain or loss
for the reporting period. This is determined by adding up all the fund's
earnings -- from dividends and interest income -- and subtracting its
operating expenses. This statement also lists any net gain or loss the
fund realized on the sales of its holdings and -- for holdings that
remain in the portfolio -- any change in unrealized gains or losses over
the period.
Statement of changes in net assets shows how the fund's net assets were
affected by distributions to shareholders and by changes in the number
of the fund's shares. It lists distributions and their sources (net
investment income or realized capital gains) over the current reporting
period and the most recent fiscal year-end. The distributions listed
here may not match the sources listed in the Statement of operations
because the distributions are determined on a tax basis and may be paid
in a different period from the one in which they were earned.
Financial highlights provide an overview of the fund's investment
results, per-share distributions, expense ratios, net investment income
ratios and portfolio turnover in one summary table, reflecting the five
most recent reporting periods. In a semiannual report, the highlight
table also includes the current reporting period. For open-end funds, a
separate table is provided for each share class.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and Shareholders of
Putnam Investment Grade Municipal Trust III
In our opinion, the accompanying statement of assets and liabilities,
including the fund's portfolio, 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 Investment Grade Municipal Trust III (the "fund") at
October 31, 2000, and the results of its operations, the changes in its
net assets and the financial highlights for the periods indicated, in
conformity with accounting principles generally accepted in the United
States of America. 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 auditing standards
generally accepted in the United States of America, 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
October 31, 2000 by correspondence with the custodian, provide a
reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
December 7, 2000
<TABLE>
<CAPTION>
THE FUND'S PORTFOLIO
October 31, 2000
KEY TO ABBREVIATIONS
AMBAC -- AMBAC Indemnity Corporation
COP -- Certificate of Participation
FGIC -- Financial Guaranty Insurance Company
FRB -- Floating Rate Bonds
FSA -- Financial Security Assurance
G.O. Bonds -- General Obligation Bonds
IFB -- Inverse Floating Rate Bonds
IF COP -- Inverse Floating Rate Certificate of Participation
MBIA -- Municipal Bond Investors Assurance Corporation
MUNICIPAL BONDS AND NOTES (98.3%) (a)
PRINCIPAL AMOUNT RATING (RAT) VALUE
<S> <C> <C> <C>
Alaska (1.7%)
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$ 1,000,000 Valdez, Marine Term. Rev. Bonds (Sohio Pipeline),
7 1/8s, 12/1/25 AA+ $ 1,047,930
Arkansas (0.6%)
-------------------------------------------------------------------------------------------------------------------
400,000 Baxter Cnty., Hosp. Rev. Bonds, Ser. B, 5 5/8s, 9/1/28 Baa 330,500
California (2.6%)
-------------------------------------------------------------------------------------------------------------------
500,000 CA Statewide Cmntys. Dev. Auth. COP
(The Internext Group), 5 3/8s, 4/1/30 BBB 430,000
1,000,000 San Diego Cnty., Wtr. Auth. IF COP, FGIC,
6.774s, 4/23/08 (SEG) Aaa 1,146,250
-------------
1,576,250
Colorado (12.3%)
-------------------------------------------------------------------------------------------------------------------
8,700,000 CO Pub. Hwy. Auth. Rev. Bonds (E-470 Pub. Hwy.),
Ser. B, zero %, 9/1/35 Baa3 652,500
1,000,000 CO Springs Hosp. Rev. Bonds, 6 3/8s, 12/15/30 A3 1,001,250
Denver, City & Cnty. Arpt. Rev. Bonds
2,205,000 Ser. A, 8 3/4s, 11/15/23 A2 2,323,364
795,000 Ser. A, 8 3/4s, 11/15/23, Prerefunded Aaa 843,908
1,370,000 Ser. A, 8 1/2s, 11/15/23 A2 1,399,099
1,000,000 Ser. D, 7 3/4s, 11/15/13 A2 1,186,250
-------------
7,406,371
Florida (6.5%)
-------------------------------------------------------------------------------------------------------------------
Broward Cnty., Resource Recvy. Rev. Bonds
830,000 (SES Broward Cnty. LP South), 7.95s, 12/1/08 A 848,675
1,695,000 (Waste-Energy LP North), 7.95s, 12/1/08 A 1,733,138
1,000,000 Escambia Cnty., Hlth. Facs. Auth. Rev. Bonds
(Baptist Hosp. & Baptist Manor), 5 1/8s, 10/1/19 A3 833,750
500,000 Orange Cnty., Hlth. Facs. Auth. Rev. Bonds
(Regl. Hlth. Care Syst.), Ser. E, 6s, 10/1/26 A2 494,375
-------------
3,909,938
Georgia (0.9%)
-------------------------------------------------------------------------------------------------------------------
GA Med. Ctr. Hosp. Auth. IFB, MBIA
200,000 8.719s, 8/1/10 Aaa 218,000
300,000 8.719s, 8/1/10, Prerefunded Aaa 330,000
-------------
548,000
Illinois (6.5%)
-------------------------------------------------------------------------------------------------------------------
1,500,000 Chicago, O'Hare Intl. Arpt. Special Fac. Rev. Bonds
(American Airlines), 8.2s, 12/1/24 Baa 1,661,250
1,605,000 IL Hlth. Fac. Auth. Rev. Bonds (Glenoaks Med. Ctr.),
Ser. D, 9 1/2s, 11/15/15 AAA 1,639,379
750,000 IL Dev. Fin. Auth. Hosp. Rev. Bonds (Adventist Hlth.
Syst./Sunbelt Obligation), 5.65s, 11/15/24 A- 635,625
-------------
3,936,254
Indiana (3.4%)
-------------------------------------------------------------------------------------------------------------------
2,000,000 Marion Cnty., Ind. Convention & Rectl. Fac. Auth.
Rev. Bonds (Excise Tax Rev. Lease Rental), Ser. A,
AMBAC, 7s, 6/1/21 Aaa 2,064,400
Kansas (4.1%)
-------------------------------------------------------------------------------------------------------------------
2,400,000 Burlington, Poll. Ctrl. Rev. Bonds (Kansas Gas &
Electric Co.), MBIA, 7s, 6/1/31 Aaa 2,479,656
Kentucky (2.4%)
-------------------------------------------------------------------------------------------------------------------
1,000,000 Boone Cnty., Poll. Control Rev. Bonds (Dayton
Pwr. & Lt. Co.), Ser. A, 6 1/2s, 11/15/22 A2 1,026,250
400,000 KY Econ. Dev. Fin. Auth. Hlth. System Rev. Bonds
(Norton Healthcare, Inc.), Ser. A, 6 5/8s, 10/1/28 BBB/P 390,500
-------------
1,416,750
Louisiana (2.4%)
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1,420,000 Beauregard, Parish Rev. Bonds (Boise Cascade Corp.),
7 3/4s, 6/1/21 Baa3 1,461,819
Massachusetts (7.0%)
-------------------------------------------------------------------------------------------------------------------
1,000,000 MA State Dev. Fin. Agcy. Rev. Bonds (Ma. Biomedical
Research), Ser. C, 6 1/4s, 8/1/20 A 1,007,500
750,000 MA State Hlth. & Edl. Fac. Auth. IFB (Med. Ctr. of
Central MA), Ser. B, AMBAC, 8.42s, 6/23/22 Aaa 867,188
1,000,000 MA State Hsg. Fin. Agcy. Rev. Bonds, Ser. 53, MBIA,
6.15s, 12/1/29 Aaa 1,013,750
830,000 MA State Port Auth. Rev. Bonds, 13s, 7/1/13 Aaa 1,304,138
-------------
4,192,576
Minnesota (1.6%)
-------------------------------------------------------------------------------------------------------------------
925,000 SCA Multi-Fam. Mtge. Rev. Bonds (Burnsville),
Ser. A-9, FSA, 7.1s, 1/1/30 Aaa 990,906
Mississippi (0.8%)
-------------------------------------------------------------------------------------------------------------------
500,000 Mississippi Bus. Fin. Corp. Poll. Ctrl. Rev. Bonds
(Syst. Energy Res., Inc.), 5.9s, 5/1/22 BBB- 460,000
Missouri (0.8%)
-------------------------------------------------------------------------------------------------------------------
500,000 MO State Hlth. & Edl. Fac. Rev. Bonds (St. Anthony's
Med. Ctr.), 6 1/4s, 12/1/30 A 493,750
Nevada (3.2%)
-------------------------------------------------------------------------------------------------------------------
Clark Cnty., Indl. Dev. Rev. Bonds
1,000,000 (NV Pwr. Co.), Ser. A, 5.9s, 11/1/32 BBB 895,000
1,000,000 (Southwest Gas Corp.), Ser. B, 7 1/2s, 9/1/32 Baa2 1,043,750
-------------
1,938,750
New York (7.7%)
-------------------------------------------------------------------------------------------------------------------
NY City, Muni. Wtr. & Swr. Fin. Auth. Rev. Bonds
2,000,000 Ser. C, 7 3/4s, 6/15/20 Aaa 2,071,880
1,000,000 Ser. B, 5 3/4s, 6/15/26 AA 1,008,750
1,000,000 NY State Energy Res. & Dev. Auth. Elec. Fac. Rev.
Bonds (Cons. Edison Co. of NY, Inc.), Ser. A,
7 1/2s, 1/1/26 A+ 1,009,910
500,000 Port Auth. NY & NJ 144A, Ser. N18,
8.75s, 12/1/17 Aaa 556,250
-------------
4,646,790
North Carolina (3.3%)
-------------------------------------------------------------------------------------------------------------------
NC Eastern Muni. Pwr. Agcy. Syst. Rev. Bonds
1,000,000 (No. 1 Catawba Elec.), Ser. B, 6 1/2s, 1/1/20 BBB+ 1,026,250
500,000 Ser. A, 5 3/4s, 1/1/26 Baa3 461,250
500,000 Ser. B, 5.65s, 1/1/16 BBB 476,250
-------------
1,963,750
North Dakota (0.8%)
-------------------------------------------------------------------------------------------------------------------
500,000 Grand Forks, Hlth. Care Syst. Rev. Bonds
(Altru Hlth. Syst. Oblig. Group), 7 1/8s, 8/15/24 Baa1/P 508,125
Ohio (0.6%)
-------------------------------------------------------------------------------------------------------------------
400,000 OH State Env. Impt. Rev. Bonds (USX Corp.),
5 5/8s, 5/1/29 Baa1 360,000
Oklahoma (0.7%)
-------------------------------------------------------------------------------------------------------------------
600,000 OK Dev. Fin. Auth. Rev. Bonds (Hillcrest
Healthcare), Ser. A, 5 5/8s, 8/15/29 BB+ 418,500
Pennsylvania (3.6%)
-------------------------------------------------------------------------------------------------------------------
1,000,000 Allegheny Cnty., Indl. Dev. Auth. Rev. Bonds
(Environmental Impt.). Ser. A, 6.7s, 12/1/20 Baa1 1,020,000
250,000 Carbon Cnty., Indl. Dev. Auth. Rev. Bonds
(Panter Creek Partners PJ), 6.65s, 5/1/10 BBB-/P 256,250
1,000,000 Delaware Cnty., Indl. Dev. Auth. Rev. Bonds,
Ser. A, 6.2s, 7/1/19 BB- 886,250
-------------
2,162,500
Puerto Rico (0.9%)
-------------------------------------------------------------------------------------------------------------------
500,000 PR Elec. Pwr. Auth. IFB, FSA, 7.378s, 7/1/23 Aaa 539,375
South Carolina (1.1%)
-------------------------------------------------------------------------------------------------------------------
500,000 Connector 2000 Association, Inc. SC Toll Road
Rev. Bonds (Southern Connector
Project), Ser. A, 5 3/8s, 1/1/38 BBB- 379,375
300,000 SC State Jobs Econ. Dev. Auth. Hosp. Fac.
Rev. Bonds (Palmetto Hlth. Alliance), Ser. A,
7 3/8s, 12/15/21 Baa2 310,125
-------------
689,500
Tennessee (8.2%)
-------------------------------------------------------------------------------------------------------------------
Johnson City, Hlth. & Edl. Facs. Rev. Bonds
1,000,000 (Mtn. States Hlth.), Ser. A, 7 1/2s, 7/1/33 Baa2 1,005,000
1,000,000 Ser. A2, MBIA, 8.2s, 7/1/21 (acquired 2/8/00,
cost 941,900) (RES) Aaa 1,055,000
2,700,000 Metropolitan Govt. Nashville & Davidson Cnty.,
Tenn. Wtr. & Swr. IFB, AMBAC, 7.557s, 1/1/22 Aaa 2,889,000
-------------
4,949,000
Texas (10.4%)
-------------------------------------------------------------------------------------------------------------------
2,400,000 Bexar Cnty., Hlth. Fac. Dev. Corp. Rev. Bonds
(St. Luke's Lutheran Hosp.), 7.9s, 5/1/18 AAA/P 2,585,999
1,000,000 Dallas-Fort Worth Intl. Arpt. Fac. Impt. Corp.
Rev. Bonds (American Airlines), 6 3/8s, 5/1/35 Baa1 971,250
2,000,000 Titus Cnty., Fresh Wtr. Supply Dist. No. 1 Poll. Rev.
Bonds (Southwestern Elec. Pwr. Co.), Ser. A,
8.2s, 8/1/11 A2 2,093,720
Tomball, Hosp. Auth. Rev. Bonds (Tomball
Regl. Hosp.)
400,000 6 1/8s, 7/1/23 Baa2 344,500
300,000 6s, 7/1/29 BBB/P 249,750
-------------
6,245,219
Virginia (2.5%)
-------------------------------------------------------------------------------------------------------------------
600,000 Pocahontas Pkwy Assn. Toll Rd. Rev. Bonds, Ser. A,
5 1/2s, 8/15/28 Baa3 495,000
1,000,000 VA State Hsg. Dev. Auth. Rev. Bonds, Ser. A,
7.1s, 1/1/17 Aa1 1,033,750
-------------
1,528,750
Washington (1.7%)
-------------------------------------------------------------------------------------------------------------------
1,000,000 King Cnty., G.O. Bonds, Ser. C, 6 1/4s, 1/1/32 Aa1 1,041,250
-------------------------------------------------------------------------------------------------------------------
Total Investments (cost $60,357,682) (b) $ 59,306,609
-------------------------------------------------------------------------------------------------------------------
(a) Percentages indicated are based on net assets of $60,305,913.
(RAT) The Moody's or Standard & Poor's ratings indicated are believed to
be the most recent ratings available at October 31, 2000, for the
securities listed. Ratings are generally ascribed to securities at the
time of issuance. While the agencies may from time to time revise such
ratings, they undertake no obligation to do so, and the ratings do not
necessarily represent what the agencies would ascribe to these
securities at October 31, 2000. Securities rated by Putnam are indicated
by "/P" and are not publicly rated. Ratings are not covered by the
Report of independent accountants.
(b) The aggregate identified cost on a tax basis is $60,428,946
resulting in gross unrealized appreciation and depreciation of
$1,350,428 and $2,472,765, respectively, or net unrealized depreciation
of $1,122,337.
(RES) Restricted, excluding 144A securities, as to public resale. The
total market value of restricted securities held at October 31, 2000 was
$1,055,000 or 1.7% of net assets.
(SEG) A portion of this security was pledged and segregated with the
custodian to cover margin requirements for futures contracts at October
31, 2000.
The rates shown on Floating Rate Bonds (FRB) are the current
interest rates shown at October 31, 2000, which are subject change based
on the terms of the security.
The rates shown on IFB and IF COP, which are securities paying
interest rates that vary inversely to changes in the market interest
rates, are the current interest rates at October 31, 2000.
The fund had the following industry group concentrations greater than 10% at October 31, 2000
(as a percentage of net assets):
Health care 24.1%
Transportation 18.9
Utilities 18.2
Water and sewer 17.6
------------------------------------------------------------------------------
Futures Contracts Outstanding at October 31, 2000
Aggregate Face Expiration Unrealized
Total Value Value Date Appreciation
------------------------------------------------------------------------------
Municipal Bond
Index (long) $11,847,938 $11,795,577 Dec-00 $52,361
------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
October 31, 2000
<S> <C>
Assets
-------------------------------------------------------------------------------------------
Investments in securities, at value
(identified cost $60,357,682) (Note 1) $59,306,609
-------------------------------------------------------------------------------------------
Cash 57,700
-------------------------------------------------------------------------------------------
Interest receivable 1,421,469
-------------------------------------------------------------------------------------------
Total assets 60,785,778
Liabilities
-------------------------------------------------------------------------------------------
Payable for variation margin 40,906
-------------------------------------------------------------------------------------------
Distributions payable to shareholders 246,413
-------------------------------------------------------------------------------------------
Payable for compensation of Manager (Note 2) 108,296
-------------------------------------------------------------------------------------------
Payable for investor servicing and custodian services (Note 2) 8,660
-------------------------------------------------------------------------------------------
Payable for compensation of Trustees (Note 2) 11,555
-------------------------------------------------------------------------------------------
Payable for administrative services (Note 2) 1,263
-------------------------------------------------------------------------------------------
Other accrued expenses 62,772
-------------------------------------------------------------------------------------------
Total liabilities 479,865
-------------------------------------------------------------------------------------------
Net assets $60,305,913
Represented by
-------------------------------------------------------------------------------------------
Series A remarketed preferred shares (200 shares issued
and outstanding at $50,000 per share) (Note 4) $10,000,000
-------------------------------------------------------------------------------------------
Paid-in capital -- common shares (unlimited shares authorized) (Note 1) 55,813,561
-------------------------------------------------------------------------------------------
Distributions in excess of net investment income (Note 1) (217,488)
-------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (Note 1) (4,291,448)
-------------------------------------------------------------------------------------------
Net unrealized depreciation of investments (998,712)
-------------------------------------------------------------------------------------------
Total -- Representing net assets applicable to
capital shares outstanding $60,305,913
Computation of net asset value
-------------------------------------------------------------------------------------------
Series A remarketed preferred shares $10,000,000
-------------------------------------------------------------------------------------------
Cumulative undeclared dividends on remarketed preferred shares 21,603
-------------------------------------------------------------------------------------------
Net assets allocated to remarketed preferred shares --
liquidation preference $10,021,603
-------------------------------------------------------------------------------------------
Net assets available to common shares $50,284,310
-------------------------------------------------------------------------------------------
Net asset value per common share
($50,284,310 divided by 4,007,092 shares) $12.55
-------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
Year ended October 31, 2000
<S> <C>
Tax exempt interest income: $3,976,847
-------------------------------------------------------------------------------------------
Expenses:
-------------------------------------------------------------------------------------------
Compensation of Manager (Note 2) 414,168
-------------------------------------------------------------------------------------------
Investor servicing and custodian fees (Note 2) 55,770
-------------------------------------------------------------------------------------------
Compensation of Trustees (Note 2) 9,131
-------------------------------------------------------------------------------------------
Administrative services (Note 2) 3,809
-------------------------------------------------------------------------------------------
Auditing 30,600
-------------------------------------------------------------------------------------------
Other 57,184
-------------------------------------------------------------------------------------------
Total expenses 570,662
-------------------------------------------------------------------------------------------
Expense reduction (Note 2) (41,689)
-------------------------------------------------------------------------------------------
Net expenses 528,973
-------------------------------------------------------------------------------------------
Net investment income 3,447,874
-------------------------------------------------------------------------------------------
Net realized loss on investments (Notes 1 and 3) (43,283)
-------------------------------------------------------------------------------------------
Net realized gain on futures contracts (Note 1) 708,884
-------------------------------------------------------------------------------------------
Net unrealized appreciation of investments and futures during the year 501,234
-------------------------------------------------------------------------------------------
Net gain on investments 1,166,835
-------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $4,614,709
-------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
Year ended October 31
---------------------------------
2000 1999
--------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (decrease) in net assets
--------------------------------------------------------------------------------------------------
Operations:
--------------------------------------------------------------------------------------------------
Net investment income $ 3,447,874 $ 3,392,461
--------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 665,601 (478,078)
--------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments 501,234 (4,526,104)
--------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 4,614,709 (1,611,721)
--------------------------------------------------------------------------------------------------
Distributions to remarketed preferred shareholders:
--------------------------------------------------------------------------------------------------
From net investment income (400,285) (323,140)
--------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations applicable to common shareholders (excluding
cumulative undeclared dividends on remarketed preferred
shares of $21,603 and $16,069, respectively) 4,214,424 (1,934,861)
--------------------------------------------------------------------------------------------------
Distributions to common shareholders:
--------------------------------------------------------------------------------------------------
From net investment income (2,956,967) (3,123,262)
--------------------------------------------------------------------------------------------------
In excess of net investment income -- (42,020)
--------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 1,257,457 (5,100,143)
Net assets
--------------------------------------------------------------------------------------------------
Beginning of year 59,048,456 64,148,599
--------------------------------------------------------------------------------------------------
End of year (including distributions in excess of
net investment income of $217,488 and
$308,110, respectively) $60,305,913 $59,048,456
--------------------------------------------------------------------------------------------------
Number of fund shares
--------------------------------------------------------------------------------------------------
Common shares outstanding at
beginning and end of year 4,007,092 4,007,092
--------------------------------------------------------------------------------------------------
Remarketed preferred shares outstanding at
beginning and end of year 200 200
--------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
--------------------------------------------------------------------------------------------------
Per-share
operating performance Year ended October 31
--------------------------------------------------------------------------------------------------
2000 1999 1998 1997 1996
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period
(common shares) $12.24 $13.51 $13.35 $13.02 $13.22
--------------------------------------------------------------------------------------------------
Investment operations
--------------------------------------------------------------------------------------------------
Net investment income .86 .85 .80 .86 .82
--------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments .29 (1.25) .25 .36 (.13)
--------------------------------------------------------------------------------------------------
Total from
investment operations 1.15 (.40) 1.05 1.22 .69
--------------------------------------------------------------------------------------------------
Less distributions:
--------------------------------------------------------------------------------------------------
From net
investment income
--------------------------------------------------------------------------------------------------
To preferred shareholders (.10) (.08) (.09) (.09) (.09)
--------------------------------------------------------------------------------------------------
To common shareholders (.74) (.78) (.80) (.80) (.80)
--------------------------------------------------------------------------------------------------
In excess of net investment income
--------------------------------------------------------------------------------------------------
To common shareholders -- (.01) -- -- --
--------------------------------------------------------------------------------------------------
Total distributions: (.84) (.87) (.89) (.89) (.89)
--------------------------------------------------------------------------------------------------
Net asset value, end of period
(common shares) $12.55 $12.24 $13.51 $13.35 $13.02
--------------------------------------------------------------------------------------------------
Market value, end of period
(common shares) $11.000 $10.688 $13.688 $12.875 $11.875
--------------------------------------------------------------------------------------------------
Ratios and supplemental data
--------------------------------------------------------------------------------------------------
Total return at market value
(common shares)(%)(a) 10.27 (16.97) 12.92 15.54 6.89
--------------------------------------------------------------------------------------------------
Net assets, end of period
(total fund)(in thousands) $60,306 $59,048 $64,149 $63,498 $62,166
--------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(b)(c) 1.16 1.24 1.21 1.30 1.30
--------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (%)(b) 6.21 5.86 5.25 5.90 5.59
--------------------------------------------------------------------------------------------------
Portfolio turnover rate (%) 12.13 17.20 28.13 37.75 123.89
--------------------------------------------------------------------------------------------------
(a) Total return assumes dividend reinvestment.
(b) Ratios reflect net assets available to common shares only; net
investment income ratio also reflects reduction for dividend payments to
preferred shareholders.
(c) Includes amounts paid through expense offset arrangements. (Note 2).
</TABLE>
NOTES TO FINANCIAL STATEMENTS
October 31, 2000
Note 1
Significant accounting policies
Putnam Investment Grade Municipal Trust III, (the "fund") is registered
under the Investment Company Act of 1940, as amended, as a diversified,
closed-end management investment company. The fund's investment
objective is to provide as high a level of current income exempt from
federal income tax as is believed to be consistent with preservation of
capital. The fund intends to achieve its objective by investing in a
diversified portfolio of investment grade municipal securities that
Putnam Investment Management, Inc. ("Putnam Management"), the fund's
manager, a wholly-owned subsidiary of Putnam Investments, Inc., believes
does not involve undue risk to income or principal.
The following is a summary of significant accounting policies
consistently followed by the fund in the preparation of its financial
statements. The preparation of financial statements is in conformity
with generally accepted accounting principles and requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities of the financial statements and the reported
amounts of increases and decreases in net assets from operations during
the reporting period. Actual results could differ from those estimates.
A) Security valuation Tax-exempt bonds and notes are stated on the basis
of valuations provided by a pricing service, approved by the Trustees,
which uses information with respect to transactions in bonds, quotations
from bond dealers, market transactions in comparable securities and
various relationships between securities in determining value.
Restricted securities are stated at fair value following procedures
approved by the Trustees. Such valuations and procedures are reviewed
periodically by the Trustees.
B) Security transactions and related investment income Security
transactions are accounted for on the trade date (date the order to buy
or sell is executed). Gains or losses on securities sold are determined
on the identified cost basis.
Interest income is recorded on the accrual basis.
C) Futures and options contracts The fund may use futures and options
contracts to hedge against changes in the values of securities the fund
owns or expects to purchase. The fund may also write options on
securities it owns or in which it may invest to increase its current
returns.
The potential risk to the fund is that the change in value of futures
and options contracts may not correspond to the change in value of the
hedged instruments. In addition, losses may arise from changes in the
value of the underlying instruments, if there is an illiquid secondary
market for the contracts, or if the counterparty to the contract is
unable to perform. When the contract is closed, the fund records a
realized gain or loss equal to the difference between the value of the
contract at the time it was opened and the value at the time it was
closed. Realized gains and losses on purchased options are included in
realized gains and losses on investment securities.
Futures contracts are valued at the quoted daily settlement prices
established by the exchange on which they trade. Exchange traded options
are valued at the last sale price, or if no sales are reported, the last
bid price for purchased options and the last ask price for written
options. Options traded over-the-counter are valued using prices
supplied by dealers.
D) Federal taxes It is the policy of the fund to distribute all of its
income within the prescribed time and otherwise comply with the
provisions of the Internal Revenue Code applicable to regulated
investment companies. It is also the intention of the fund to distribute
an amount sufficient to avoid imposition of any excise tax under Section
4982 of the Internal Revenue Code of 1986, as amended. Therefore, no
provision has been made for federal taxes on income, capital gains or
unrealized appreciation on securities held nor for excise tax on income
and capital gains.
At October 31, 2000, the fund had a capital loss carryover of
approximately $3,893,000 available to offset future capital gains, if
any. The amount of the carryover and the expiration dates are:
Loss Carryover Expiration
-------------- ------------------
$ 524,000 October 31, 2002
1,863,000 October 31. 2003
452,000 October 31, 2004
244,000 October 31, 2005
810,000 October 31, 2007
E) Distributions to shareholders Distributions to common and preferred
shareholders from net investment income are recorded by the fund on the
ex-dividend date. Capital gains, if any, are recorded on the ex-dividend
date and paid at least annually. Dividends on remarketed preferred
shares become payable when, as and if declared by the Trustees. Each
dividend period for the remarketed preferred shares is generally a 28
day period. The applicable dividend rate for the remarketed preferred
shares on October 31, 2000 was 4.15%. The amount and character of income
and gains to be distributed are determined in accordance with income tax
regulations which may differ from generally accepted accounting
principles. These differences include a temporary difference of
dividends payable, unrealized gains and losses on certain futures
contracts, and straddle loss deferrals. Reclassifications are made to
the fund's capital accounts to reflect income and gains available for
distribution ( or available capital loss carryovers) under income tax
regulations. For the year ended October 31, 2000, the fund required no
such reclassifications.
F) Determination of net asset value Net asset value of the common shares
is determined by dividing the value of all assets of the fund, less all
liabilities and the liquidation preference of any outstanding remarketed
preferred shares, by the total number of common shares outstanding.
G) Amortization of bond premium and accretion of bond discount Any
premium resulting from the purchase of securities in excess of maturity
value is amortized on a yield-to-maturity basis. Discounts on original
issue discount bonds are accreted according to the yield-to-maturity
basis.
Note 2
Management fee, administrative
services and other transactions
Compensation of Putnam Management, for management and investment
advisory services is paid quarterly based on the average net assets of
the fund. Such fee is based on the following annual rates: 0.70% of the
first $500 million of the average net asset value of the fund, 0.60% of
the next $500 million, 0.55% of the next $500 million, and 0.50% of any
amount over $1.5 billion.
If dividends payable on remarketed preferred shares during any dividend
payment period plus any expenses attributable to remarketed preferred
shares for that period exceed the fund's gross income attributable to
the proceeds of the remarketed preferred shares during that period, then
the fee payable to Putnam Management for that period will be reduced by
the amount of the excess (but not more than 70% of the liquidation
preference of the remarketed preferred shares outstanding during the
period).
The fund reimburses Putnam Management an allocated amount for the
compensation and related expenses of certain officers of the fund and
their staff who provide administrative services to the fund. The
aggregate amount of all such reimbursements is determined annually by
the Trustees.
Custodial functions for the fund's assets are provided by Putnam
Fiduciary Trust Company (PFTC), a subsidiary of Putnam Investments, Inc.
Investor servicing agent functions are provided by Putnam Investor
Services, a division of PFTC.
For the year ended October 31, 2000, fund expenses were reduced by
$41,689 under expense offset arrangements with PFTC and brokerage
service arrangements. Investor servicing and custodian fees reported in
the Statement of operations exclude these credits. The fund could have
invested a portion of the assets utilized in connection with the expense
offset arrangements in an income producing asset if it had not entered
into such arrangements.
Each Trustee of the fund receives an annual Trustee fee, of which $405
has been allocated to the fund, and an additional fee for each Trustee's
meeting attended. Trustees receive additional fees for attendance at
certain committee meetings.
The fund has adopted a Trustee Fee Deferral Plan (the "Deferral Plan")
which allows the Trustees to defer the receipt of all or a portion of
Trustees Fees payable on or after July 1, 1995. The deferred fees remain
invested in certain Putnam funds until distribution in accordance with
the Deferral Plan.
The fund has adopted an unfunded noncontributory defined benefit pension
plan (the "Pension Plan") covering all Trustees of the fund who have
served as a Trustee for at least five years. Benefits under the Pension
Plan are equal to 50% of the Trustee's average total retainer and
meeting fees for the three years preceding retirement. Pension expense
for the fund is included in Compensation of Trustees in the Statement of
operations. Accrued pension liability is included in Payable for
compensation of Trustees in the Statement of assets and liabilities.
Note 3
Purchases and sales of securities
During the year ended October 31, 2000, cost of purchases and proceeds
from sales of investment securities other than short-term investments
aggregated $9,107,735 and $6,999,819, respectively. There were no
purchases and sales of U.S. government obligations.
Note 4
Remarketed preferred shares
The remarketed preferred shares are redeemable at the option of the fund
on any dividend payment date at a redemption price of $50,000 per share,
plus an amount equal to any dividends accumulated on a daily basis but
unpaid through the redemption date (whether or not such dividends have
been declared) and, in certain circumstances, a call premium.
It is anticipated that dividends paid to holders of remarketed preferred
shares will be considered tax-exempt dividends under the Internal
Revenue Code of 1986. To the extent that the fund earns taxable income
and capital gains by the conclusion of a fiscal year, it will be
required to apportion to the holders of the remarketed preferred shares
throughout that year additional dividends as necessary to result in an
after-tax equivalent to the applicable dividend rate for the period.
Under the Investment Company Act of 1940, the fund is required to
maintain asset coverage of at least 200% with respect to the remarketed
preferred shares as of the last business day of each month in which any
such shares are outstanding. Additionally, the fund is required to meet
more stringent asset coverage requirements under terms of the remarketed
preferred shares and the shares' rating agencies. Should these
requirements not be met, or should dividends accrued on the remarketed
preferred shares not be paid, the fund may be restricted in its ability
to declare dividends to common shareholders or may be required to redeem
certain of the remarketed preferred shares. At October 31, 2000, no such
restrictions have been placed on the fund.
FEDERAL TAX INFORMATION
(Unaudited)
The fund has designated 100% of dividends paid from net investment
income during the fiscal year as tax exempt for Federal income tax
purposes
The Form 1099 you receive in January 2001 will show the tax status of
all distributions paid to your account in calendar year 2000.
RESULTS OF OCTOBER 5, 2000 SHAREHOLDER MEETING
(Unaudited)
An annual meeting of shareholders of the fund was held on October 5,
2000. At the meeting, each of the nominees for Trustees was elected, as
follows:
Votes
Votes for withheld
Jameson Adkins Baxter 3,773,499 66,077
Hans H. Estin 3,776,597 62,979
Ronald J. Jackson 3,780,599 58,977
Paul L. Joskow 3,779,599 59,977
Elizabeth T. Kennan 3,778,424 61,152
Lawrence J. Lasser 3,774,599 64,977
John H. Mullin III 3,780,599 58,977
George Putnam, III 3,774,388 65,188
A.J.C. Smith 3,774,361 65,215
W. Thomas Stephens 3,777,807 61,769
W. Nicholas Thorndike 3,780,297 59,279
A proposal to ratify the selection of PricewaterhouseCoopers LLP as the
independent auditors of your fund was approved as follows: 3,785,279
votes for, and 22,037 votes against, with 32,260 abstentions and broker
non-votes.
WELCOME TO WWW.PUTNAMINVESTMENTS.COM
Now you can use your PC to get up-to-date information about your funds,
learn more about investing and retirement planning, and access market
news and economic outlooks from Putnam.
VISIT PUTNAM'S SITE ON THE WORLD WIDE WEB FOR:
* the benefits of investing with Putnam
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You can also read Putnam economist Dr. Robert Goodman's commentary and
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or objective, use our glossary to decode investment terms . . . and much
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The site can be accessed through any of the major online services
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you can also access it via Netscape or Microsoft Internet Explorer,
using an independent Internet service provider.
New features will be added to the site regularly. So be sure to bookmark us at
http://www.putnaminvestments.com
FUND INFORMATION
WEB SITE
www.putnaminvestments.com
INVESTMENT MANAGER
Putnam Investment Management, Inc.
One Post Office Square
Boston, MA 02109
MARKETING SERVICES
Putnam Retail Management, Inc.
One Post Office Square
Boston, MA 02109
CUSTODIAN
Putnam Fiduciary Trust Company
LEGAL COUNSEL
Ropes & Gray
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
TRUSTEES
John A. Hill, Chairman
Jameson Adkins Baxter
Hans H. Estin
Ronald J. Jackson
Paul L. Joskow
Elizabeth T. Kennan
Lawrence J. Lasser
John H. Mullin III
Robert E. Patterson
George Putnam, III
A.J.C. Smith
W. Thomas Stephens
W. Nicholas Thorndike
OFFICERS
George Putnam, III
President
Charles E. Porter
Executive Vice President
Patricia C. Flaherty
Senior Vice President
John D. Hughes
Senior Vice President and Treasurer
Lawrence J. Lasser
Vice President
Gordon H. Silver
Vice President
Ian C. Ferguson
Vice President
Brett C. Browchuk
Vice President
Stephen Oristaglio
Vice President
Richard P. Wyke
Vice President and Fund Manager
Richard A. Monaghan
Vice President
Richard G. Leibovitch
Vice President
John R. Verani
Vice President
Call 1-800-225-1581 weekdays from 9 a.m. to 5 p.m. Eastern Time, or
visit our Web site (www.putnaminvestments.com) any time for up-to-date
information about the fund's NAV.
[LOGO OMITTED]
PUTNAM INVESTMENTS
The Putnam Funds
One Post Office Square
Boston, Massachusetts 02109
---------------------
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INVESTMENTS
---------------------
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www.putnaminvestments.com
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