Putnam
International
Voyager
Fund*
SEMIANNUAL REPORT
February 28, 1997
* Formerly Putnam Genesis Fund
[LOGO: BOSTON * LONDON * TOKYO]
Fund highlights
* As of March 31, 1997, Lipper Analytical Services ranked Putnam International
Voyager Fund's class A shares in the top 27% (94 out of 354) of international
funds for 1-year performance.*
* "Putnam International Voyager Fund is designed to take advantage of smaller
and midsize companies that are undergoing positive change around the world.
Such dynamic companies, we believe, represent exceptional long-term potential
for investors -- potential we believe Putnam is well positioned to access."
-- Justin Scott, Fund Manager
CONTENTS
4 Report from Putnam Management
8 Fund performance summary
12 Portfolio holdings
15 Financial statements
* Lipper Analytical Services, an independent research organization, ranks
funds according to total return performance. Rankings vary over time and do
not reflect the effects of sales charges. Performance for other class shares
will vary. The fund was not ranked over a longer time period. Past performance
is not indicative of future results.
From the Chairman
[GRAPHIC OMITTED: PHOTO OF GEORGE PUTNAM]
(copyright) Karsh, Ottawa
Dear Shareholder:
Putnam International Voyager Fund is one of the newest members of our family
of funds, and we are pleased to bring you this first report to shareholders
drawn from the public at large. But it is not a brand new fund; since December
1995, it has been building and testing a portfolio and an investment strategy
under Putnam's incubated-funds program.
Satisfied that the fund meets our own strict standards and that it will fill a
need within the investment community, we brought it to the marketplace in
November 1996. We are heartened by its reception, and we extend a warm welcome
to the fund's new shareholders.
As U.S. investors become increasingly aware of the interdependent nature of
the global economy, they are recognizing the need to expand their own
investment horizons. Your fund provides an opportunity to participate in a
portfolio of promising small and midsize companies located outside the United
States.
In the report that follows, Justin Scott reviews performance in the first half
of fiscal 1997 and discusses prospects for the second half.
Respectfully yours,
/S/GEORGE PUTNAM
George Putnam
Chairman of the Trustees
April 16, 1997
Report from the Fund Managers
Justin M. Scott
Putnam International Voyager Fund's approach to investing abroad has not taken
long to prove its effectiveness. Over the six months ended February 28, 1997,
your fund's class A shares gained 10.89% at net asset value (NAV) and 4.49% at
public offering price (POP). These returns soundly outpaced the Morgan Stanley
Capital International Europe, Australia, and Far East (EAFE) Index's rise of
2.29% over the same period. For performance since the fund's inception in 1995
and for class B and class M shares, please turn to page 8 of this report.
Your fund invests in stocks of smaller and midsize international firms where
we believe there is the potential for earnings growth and a re-rating of the
stock price. We believe this strategy allows investors to capitalize on
dynamic companies that few other international funds have targeted in the
past, without incurring unacceptable risk. Indeed, the increasingly
sophisticated international business and investing environment demands new
approaches and new strategies; we believe your fund meets these challenges
with a high level of sophistication. Of course, supporting your fund are
Putnam's extensive international investing research and analysis resources.
* RIGOROUS SEARCH FOR ATTRACTIVE STOCKS
In managing your fund, we stress stock selection first but we also perform
careful country analysis. We would rather own attractive stocks in attractive
markets, so we monitor political, economic, and currency developments in the
countries in which the fund invests. However, our primary focus is on
companies with dependable growth rates selling at attractive valuations. As we
discuss selected fund holdings, you will notice a diversity of types of
companies represented -- growth potential coupled with attractive valuations
is found in many different places and among many different industries.
* EUROPEAN HOLDINGS: STRONG POTENTIAL FROM DIVERSE ASSORTMENT OF STOCKS
Several key holdings in Europe exemplify the characteristics we look for in
stocks. Altana AG, a German company efficiently develops and sells a number of
health-care products from advanced pharmaceuticals to medical imaging
equipment. Atlanta's attractive valuation caused its stock to rise sharply in
1996, despite modest earnings. In France, we have purchased shares of Scor, a
reinsurance organization with global market share. Scor's earnings leaped in
1996 and appear poised to continue growing this year, even though the economic
environment in France -- like that of Germany -- is expected to remain
somewhat gloomy over the near term. While these stocks, along with others
discussed in this report, were viewed favorably at the end of the fiscal
period, all portfolio holdings are subject to review and adjustment in
accordance with the fund's investment strategy and may vary in the future.
We have also seen strong performance from another fund holding, Publicitas SA.
This Swiss advertising agency -- with strong global operations like so many of
the fund's other holdings -- is still attractively priced after a strong
upsurge already in 1997. Also in Switzerland, your fund owns shares of Kuoni
Reisen AG, a lucrative operator of travel agencies boasting affiliates around
the world.
[GRAPHIC OMMITTED: horizontal bar chart COUNTRY ALLOCATION]
COUNTRY ALLOCATION*
Switzerland 16.7%
France 12.2%
The Netherlands 9.9%
Japan 8.0%
United States 6.9%
Footnote reads:
*Based on net assets as of 2/28/97. Holdings will vary over time.
* SEVERAL ASIAN HOLDINGS REPRESENT REASONABLE GROWTH AT ATTRACTIVE VALUATIONS
While it may surprise those following the bad economic news emanating from
Japan, we believe several Japanese companies represent positive investment
opportunities. Many domestic Japanese companies are suffering. Nevertheless, a
number of Japanese companies, particularly those with strong overseas
operations and market share, remain extremely attractive. Rohm Company makes
specialized electronic components and semiconductors, mostly used in consumer
products. The company already has production plants in Brazil, South Korea,
and the United States and is expanding its overseas operations. Another fund
holding, Sankyo, manufactures pharmaceuticals, selling therapeutic treatments
through subsidiaries in the United States, India, Taiwan, and Thailand.
Elsewhere in Asia, Venture Manufacturing had exceptionally strong stock
performance in 1996. This Singapore company provides manufacturing services in
the electronics and computer industries. Malaysia boasts a number of
attractive companies in the financial services area in which your fund owns
shares of Malaysian Assurance Alliance. Finally, we are upbeat about prospects
for several companies based in Hong Kong, where investors have been
enthusiastic despite -- or perhaps because of -- the impending return of
sovereignty to China in July 1997. We believe companies such as Guoco Group,
with its diverse interests in financial services and real estate development,
are particularly well positioned to benefit from even closer ties to the
mainland. Johnson Electric Holdings, whose shares your fund owns, may also
thrive after the turnover of power. This company designs, manufactures, and
markets small motors used in consumer appliances -- the very appliances in
great demand across mainland China.
TOP 10 HOLDINGS
Baer Holdings (Switzerland)
Financial services, banking
Publicitas Holdings (Switzerland)
Advertising
Kuoni Reisen (Switzerland)
Travel agency
Panamerican Beverages, Inc. (Mexico)
Bottling
Telecel-Comunicacaoes Pessoais (Portugal)
Telecommunications
Altana (Germany)
Electronics
Freepages Group (United Kindgom)
Telecommunications
Chargeurs (France)
Media
Societe Television Francaise (France)
Media
Circle K Co. (Japan)
Retailing
Footnote reads:
These holdings represent 26.8% of the fund's net assets as of 2/28/97.
Portfolio holdings will vary over time.
* OUTLOOK APPEARS POSITIVE
We remain quite optimistic about the near- and long-term potential of many of
the companies in your fund's portfolio; operations are upbeat and corporate
changes are unleashing value. Furthermore we believe that we have developed a
sound methodology for uncovering international smaller company stocks,
bolstered by Putnam's extensive international research capabilities. In short,
we look forward to continued progress in the coming months.
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 2/28/97, there is no guarantee the fund will continue to hold
these securities in the future. International investing involves certain
risks, including those related to economic instability, unfavorable political
developments, and currency fluctuations, not present with domestic
investments.
Performance summary
Performance should always be considered in light of a fund's investment
strategy. Putnam International Voyager Fund is designed for investors seeking
capital appreciation through common stocks of smaller-capitalization companies
located outside the United States.
This section provides, at a glance, information about your fund's performance.
Total return shows how the value of the fund's shares changed over time,
assuming you held the shares through the entire period and reinvested all
distributions in the fund.
TOTAL RETURN FOR PERIODS ENDED 2/28/97
Class A Class B Class M
(inception date) (12/28/95) (10/30/96) (10/30/96)
NAV POP NAV CDSC NAV POP
- ------------------------------------------------------------------------------
6 months 10.89% 4.49% -- -- -- --
- ------------------------------------------------------------------------------
1 year 19.06 12.19 -- -- -- --
- ------------------------------------------------------------------------------
Life of class 23.54 16.42 6.80% 1.80% 6.80% 3.02%
Annual average 19.80 13.88 -- -- -- --
- ------------------------------------------------------------------------------
COMPARATIVE INDEX RETURNS FOR PERIODS ENDED 2/28/97
MSCI Consumer
EAFE Index Price Index
- ------------------------------------------------------------------------------
6 months 2.29% 1.14%
- ------------------------------------------------------------------------------
1 year 3.24 2.71
- ------------------------------------------------------------------------------
Life of class A 4.01 3.97
Annual average 3.44 3.39
- ------------------------------------------------------------------------------
Life of class B & M 0.67 0.50
- ------------------------------------------------------------------------------
Performance data represent past results, do not reflect future performance,
and will differ for each share class. They do not take into account any
adjustment for taxes payable on reinvested distributions. Investment returns
and principal value will fluctuate so that an investor's shares, when sold,
may be worth more or less than their original cost. POP assumes 5.75% maximum
sales charge for class A shares and 3.50% for class M shares. CDSC for class B
shares assumes the applicable sales charge, with the maximum being 5%.
PRICE AND DISTRIBUTION INFORMATION
6 months ended 2/28/97
Class A Class B Class M
- ------------------------------------------------------------------------------
Distributions (number) 1 1 1
- ------------------------------------------------------------------------------
Income $0.068 $0.065 $0.065
- ------------------------------------------------------------------------------
Capital gains
- ------------------------------------------------------------------------------
Long-term -- -- --
- ------------------------------------------------------------------------------
Short-term 0.038 0.038 0.038
- ------------------------------------------------------------------------------
Total $0.106 $0.103 $0.103
- ------------------------------------------------------------------------------
Share value: NAV POP NAV NAV POP
- ------------------------------------------------------------------------------
8/31/96 $9.47 $10.05 -- -- --
- ------------------------------------------------------------------------------
10/30/96 -- -- $9.82 $9.82 $10.18
- ------------------------------------------------------------------------------
2/28/97 10.39 11.02 10.38 10.38 10.76
- ------------------------------------------------------------------------------
TOTAL RETURN FOR PERIODS ENDED 3/31/97
(most recent calendar quarter)
Class A Class B Class M
(inception date) (12/28/95) (10/30/96) (10/30/96)
NAV POP NAV CDSC NAV POP
- ------------------------------------------------------------------------------
6 months 7.41% 1.26% -- -- -- --
- ------------------------------------------------------------------------------
1 year 13.11 6.64 -- -- -- --
- ------------------------------------------------------------------------------
Life of class 22.83 15.75 6.08% 1.08% 6.18% 2.43%
Annual average 17.73 12.31 -- -- -- --
- ------------------------------------------------------------------------------
Performance data represent past results, do not reflect future performance,
and will differ for each share class. They do not take into account any
adjustment for taxes payable on reinvested distributions. Investment returns
and 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
Class A shares are generally subject to an initial sales charge.
Class B shares may be subject to a sales charge upon redemption.
Class M shares have a lower initial sales charge and a higher 12b-1 fee than
class A shares and no sales charge on redemption.
Net asset value (NAV) is the value of all your fund's assets, minus any
liabilities, divided by the number of outstanding shares, not including any
initial or contingent deferred sales charge.
Public offering price (POP) is the price of a mutual fund share plus the
maximum sales charge levied at the time of purchase. POP performance figures
shown here assume the maximum 5.75% sales charge for class A shares and 3.50%
for class M shares.
Contingent deferred sales charge (CDSC) is a charge applied at the time of the
redemption of class B shares and assumes redemption at the end of the period.
Your fund's CDSC declines from a 5% maximum during the first year to 1% during
the sixth year. After the sixth year, the CDSC no longer applies.
COMPARATIVE BENCHMARKS
Europe, Australia and the Far East (EAFE)* component of the Morgan Stanley
Capital International World Index is an unmanaged list of international equity
securities, excluding U.S., with all values expressed in U.S. dollars.
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.
*Securities indexes assume reinvestment of all distributions and interest
payments and do not take in account brokerage fees or taxes. Securities in
the fund do not match those in the indexes and performance of the fund will
differ. It is not possible to invest directly in an index.
PUTNAM GROWTH FUNDS
Asia Pacific Growth Fund
Capital Appreciation Fund
Diversified Equity Trust
Europe Growth Fund
Global Growth Fund
Global Natural Resources Fund *
Health Sciences Trust
International Growth Fund +
International New Opportunities Fund
Investors Fund
New Opportunities Fund
OTC & Emerging Growth Fund [DBL. DAGGER]
Vista Fund
Voyager Fund
Voyager Fund II
PUTNAM GROWTH
AND INCOME FUNDS
Balanced Retirement Fund
Convertible Income-Growth Trust
Equity Income Fund
The George Putnam Fund of Boston
The Putnam Fund for Growth and Income
Growth and Income Fund II
International Growth and Income Fund
New Value Fund
Utilities Growth and Income Fund
PUTNAM INCOME FUNDS
American Government Income Fund
Diversified Income Trust
Diversified Income Trust II
Federal Income Trust
Global Governmental Income Trust
High Yield Advantage Fund
High Yield Trust
Income Fund
Intermediate U.S. Government
Income Fund
Preferred Income Fund
U.S. Government Income Trust
PUTNAM TAX-FREE
INCOME FUNDS
Municipal Income Fund
Tax Exempt Income Fund
Tax-Free High Yield Fund
Tax-Free Insured Fund
State tax-free income funds [SECTION MARK]
Arizona, California, Florida, Massachusetts, Michigan, Minnesota, New
Jersey, New York, Ohio and Pennsylvania
LIFESTAGESM FUNDS
Putnam Asset Allocation Funds--three investment portfolios that spread
your money across a variety of stocks, bonds, and money market
investments.
The three portfolios:
Asset Allocation: Balanced Portfolio
Asset Allocation: Conservative Portfolio
Asset Allocation: Growth Portfolio
MOST CONSERVATIVE
INVESTMENTS **
Putnam money market funds: ++
California Tax Exempt Money Market Fund
Money Market Fund
New York Tax Exempt Money Market Fund
Tax Exempt Money Market Fund
CDs and savings accounts [2 DBL. DAGGERS]
* Formerly Natural Resources Fund
+ Formerly Overseas Growth Fund
[DBL. DAGGER] Formerly OTC Emerging Growth Fund
[SECTION MARK] Not available in all states.
** Relative to above.
++ An investment in a money market fund is neither insured nor
guaranteed by the U.S. government. These funds are managed to maintain a
price of $1.00 per share, although there is no assurance that this price
will be maintained in the future.
[2 DBL. DAGGERS] Not offered by Putnam Investments. Certificates of
deposit offer a fixed rate of return and may be insured up to certain
limits by federal/state agencies. Savings accounts may also be insured
up to certain limits. Please call your financial advisor or Putnam at
1-800-225-1581 to obtain a prospectus for any Putnam fund. It contains
more complete information, including charges and expenses. Please read
it carefully before you invest or send money.
Portfolio of investments owned
February 28, 1997 (Unaudited)
<TABLE>
<CAPTION>
COMMON STOCKS (95.3%) *
NUMBER OF SHARES VALUE
<S> <C> <C>
Argentina (1.8%)
- ---------------------------------------------------------------------------------------------------------
47,700 Bansud S.A. Class B + $ 610,804
Australia (1.9%)
- ---------------------------------------------------------------------------------------------------------
127,250 QBE Insurance Group Ltd. 638,717
Austria (2.6%)
- ---------------------------------------------------------------------------------------------------------
3,600 Mayr-Melnhof Karton AG + 184,382
4,420 VA Technologies AG 667,263
------------
851,645
France (12.2%)
- ---------------------------------------------------------------------------------------------------------
16,650 Chargeurs S.A. + 840,600
9,330 Credit National 613,332
4,000 NRJ S.A. 587,606
15,200 Scor 639,495
9,000 Societe Television Francaise 1 833,027
17,000 Sommer Allibert 515,558
------------
4,029,618
Germany (5.5%)
- ---------------------------------------------------------------------------------------------------------
1,024 Altana AG 867,129
21,332 SKW Trostberg AG 649,295
17,650 Tarkett AG 313,555
------------
1,829,979
Hong Kong (6.4%)
- ---------------------------------------------------------------------------------------------------------
81,000 Dao Heng Bank Group Ltd. 416,350
85,000 Guoco Group Ltd. 476,430
222,000 JCG Holdings Ltd. 184,928
80,000 Johnson Electric Holdings Ltd. 221,103
758,000 National Mutual Asia Ltd. 827,212
------------
2,126,023
Ireland (1.6%)
- ---------------------------------------------------------------------------------------------------------
84,301 Greencore Group PLC 510,688
Italy (1.4%)
- ---------------------------------------------------------------------------------------------------------
7,900 Luxottica Group S.P.A. ADR 460,175
Japan (8.0%)
- ---------------------------------------------------------------------------------------------------------
16,200 Circle K Japan Co. Ltd. 830,042
3,080 Paris Miki Inc. 78,007
9,000 Rohm Co. Ltd. 648,586
17,000 Sankyo Co., Ltd. 475,881
17,100 Santen Pharmaceutical 341,915
22,000 Taiyo Yuden Co., Ltd. 258,435
------------
2,632,866
Malaysia (5.0%)
- ---------------------------------------------------------------------------------------------------------
34,000 Carlsberg Brewery of Malaysia 293,269
26,000 Hong Leong Credit Berhad 175,010
110,000 IOI Corp. 198,630
98,000 Malaysian Assurance Alliance 616,203
58,000 Sungei Way Holdings Berhad 168,319
40,000 UMW Holdings Berhad 211,205
------------
1,662,636
Netherlands (9.9%)
- ---------------------------------------------------------------------------------------------------------
12,300 ASM Lithography Holding N.V. + 817,950
58,400 BE Semiconductor Industries N.V. + 751,900
23,300 Getronics Electric N.V. 760,476
12,900 Grolsch N.V. 478,759
8,550 IHC Caland N.V. 475,300
------------
3,284,385
Philippines (0.9%)
- ---------------------------------------------------------------------------------------------------------
330,000 Bankard, Inc. + 107,909
300,000 International Container Terminal Services, Inc. 182,509
------------
290,418
Portugal (2.7%)
- ---------------------------------------------------------------------------------------------------------
11,114 Telecel-Comunicacaoes Pessoais, S.A. + 889,120
Singapore (2.2%)
- ---------------------------------------------------------------------------------------------------------
49,000 Clipsal Industries Ltd. 200,900
434,000 Informatics Holdings Ltd. 208,698
117,000 Venture Manufacturing Ltd. 315,395
------------
724,993
Spain (2.0%)
- ---------------------------------------------------------------------------------------------------------
7,300 Cementos Portland S.A. 295,464
5,600 Mapfre Vida Seguros 352,491
------------
647,955
Sweden (2.0%)
- ---------------------------------------------------------------------------------------------------------
14,500 Autoliv AB 658,740
Switzerland (16.7%)
- ---------------------------------------------------------------------------------------------------------
869 Baer Holdings AG 950,892
368 Baloise Holding Ltd. 723,525
357 Kuoni Reisen AG 939,092
396 Lindt & Spruengli AG 601,383
5,083 Publicitas Holding S.A. 947,678
928 Sulzer AG 578,820
625 Verwaltungs-und Privat-Bank AG 766,949
------------
5,508,339
United Kingdom (5.6%)
- ---------------------------------------------------------------------------------------------------------
1,080,000 Freepages Group PLC + 866,199
15,989 Iona Technologies PLC ADR 321,779
29,100 Molins PLC 428,874
67,525 Weir Group PLC (The) 230,376
------------
1,847,228
United States (6.9%)
- ---------------------------------------------------------------------------------------------------------
27,200 Four Seasons Hotels, Inc. 639,200
16,100 Panamerican Beverages, Inc. Class A 907,638
24,000 Union Bank + 741,357
------------
2,288,195
------------
Total Common Stocks (cost $30,367,950) $ 31,492,524
SHORT-TERM INVESTMENTS (3.2%) * (cost $ 1,042,155)
PRINCIPAL AMOUNT VALUE
- ---------------------------------------------------------------------------------------------------------
1,042,000 Interest in $594,385,000 joint repurchase agreement
dated February 28, 1997 with Morgan (J.P.) & Co., Inc.
due March 3, 1997 with respect to various U.S. Treasury
obligations -- maturity value of $1,042,465 for an
effective yield of 5.36% $ 1,042,155
- ---------------------------------------------------------------------------------------------------------
Total Investments (cost $31,410,105) *** $ 32,534,679
- ---------------------------------------------------------------------------------------------------------
* Percentages indicated are based on net assets of $33,053,218.
*** The aggregate identified cost on a tax basis is $31,429,856, resulting in gross unrealized
appreciation and depreciation of $1,853,119 and $748,296, respectively, or net unrealized
depreciation of $1,104,823.
144A after the name of a security represents those exempt from registration under Rule 144A of
the Securities Act of 1933. These securities may be resold in transactions exempt from registration,
normally to qualified institutional buyers.
ADR after the name of a foreign holding stands for American Depository Receipts representing ownership
of foreign securities on deposit with a domestic custodian bank.
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of assets and liabilities
February 28, 1997 (Unaudited)
<S> <C>
Assets
- ---------------------------------------------------------------------------------------------------
Investments in securities, at value
(identified cost $31,410,105) (Note 1) $32,534,679
- ---------------------------------------------------------------------------------------------------
Cash 24,794
- ---------------------------------------------------------------------------------------------------
Dividends and other receivables 10,781
- ---------------------------------------------------------------------------------------------------
Receivable for shares of the fund sold 744,690
- ---------------------------------------------------------------------------------------------------
Receivable for securities sold 1,433,571
- ---------------------------------------------------------------------------------------------------
Unamortized organization expenses (Note 1) 3,446
- ---------------------------------------------------------------------------------------------------
Total assets 34,751,961
Liabilities
- ---------------------------------------------------------------------------------------------------
Payable for securities purchased 1,598,571
- ---------------------------------------------------------------------------------------------------
Payable for shares of the fund repurchased 99
- ---------------------------------------------------------------------------------------------------
Payable for compensation of Manager (Note 2) 45,327
- ---------------------------------------------------------------------------------------------------
Payable for investor servicing and custodian fees (Note 2) 10,070
- ---------------------------------------------------------------------------------------------------
Payable for compensation of Trustees (Note 2) 157
- ---------------------------------------------------------------------------------------------------
Payable for administrative services (Note 2) 17
- ---------------------------------------------------------------------------------------------------
Payable for distribution fees (Note 2) 16,265
- ---------------------------------------------------------------------------------------------------
Payable for organization expenses (Note 1) 3,662
- ---------------------------------------------------------------------------------------------------
Other accrued expenses 24,575
- ---------------------------------------------------------------------------------------------------
Total liabilities 1,698,743
- ---------------------------------------------------------------------------------------------------
Net assets $33,053,218
Represented by
- ---------------------------------------------------------------------------------------------------
Paid-in capital (Notes 1 and 4) $31,722,461
- ---------------------------------------------------------------------------------------------------
Distributions in excess net investment income (Note 1) (61,839)
- ---------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and
foreign currency transactions (Note 1) 268,017
- ---------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments and
assets and liabilities in foreign currencies 1,124,579
- ---------------------------------------------------------------------------------------------------
Total -- Representing net assets applicable to
capital shares outstanding $33,053,218
Computation of net asset value and offering price
- ---------------------------------------------------------------------------------------------------
Net asset value and redemption price per class A share
($18,613,182 divided by 1,792,262 shares) $10.39
- ---------------------------------------------------------------------------------------------------
Offering price per class A share (100/94.25 of $10.39)* $11.02
- ---------------------------------------------------------------------------------------------------
Net asset value and offering price per class B share
($12,849,027 divided by 1,238,300 shares)** $10.38
- ---------------------------------------------------------------------------------------------------
Net asset value and redemption price per class M share
($1,591,009 divided by 153,278 shares) $10.38
- ---------------------------------------------------------------------------------------------------
Offering price per class M share (100/96.50 of $10.38)* $10.76
- ---------------------------------------------------------------------------------------------------
* On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales,
the offering price is reduced.
** Redemption price per share is equal to net asset value less any applicable contingent deferred
sales charge.
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of operations
Six months ended February 28, 1997 (Unaudited)
<S> <C>
Investment income:
- --------------------------------------------------------------------------------------------------
Interest $ 53,235
- --------------------------------------------------------------------------------------------------
Dividends (net of foreign tax of $2,486) 35,642
- --------------------------------------------------------------------------------------------------
Total investment income 88,877
Expenses:
- --------------------------------------------------------------------------------------------------
Compensation of Manager (Note 2) 70,928
- --------------------------------------------------------------------------------------------------
Investor servicing and custodian fees (Note 2) 25,242
- --------------------------------------------------------------------------------------------------
Compensation of Trustees (Note 2) 924
- --------------------------------------------------------------------------------------------------
Administrative services (Note 2) 45
- --------------------------------------------------------------------------------------------------
Distribution fees -- Class A (Note 2) 8,475
- --------------------------------------------------------------------------------------------------
Distribution fees -- Class B (Note 2) 18,582
- --------------------------------------------------------------------------------------------------
Distribution fees -- Class M (Note 2) 1,844
- --------------------------------------------------------------------------------------------------
Amortization of organization expenses (Note 1) 60
- --------------------------------------------------------------------------------------------------
Reports to shareholders 10,649
- --------------------------------------------------------------------------------------------------
Registration fees 8,267
- --------------------------------------------------------------------------------------------------
Auditing 9,632
- --------------------------------------------------------------------------------------------------
Legal 2,213
- --------------------------------------------------------------------------------------------------
Other 767
- --------------------------------------------------------------------------------------------------
Fees waived by Manager (Note 2) (19,322)
- --------------------------------------------------------------------------------------------------
Total expenses 138,306
- --------------------------------------------------------------------------------------------------
Expense reduction (Note 2) (15,318)
- --------------------------------------------------------------------------------------------------
Net expenses 122,988
- --------------------------------------------------------------------------------------------------
Net investment loss (34,111)
- --------------------------------------------------------------------------------------------------
Net realized gain on investments (Notes 1 and 3) 251,066
- --------------------------------------------------------------------------------------------------
Net realized gain on foreign currency transactions (Note 1) 24,429
- --------------------------------------------------------------------------------------------------
Net unrealized appreciation of assets and liabilities in
foreign currencies during the period 4,815
- --------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments during the period 967,757
- --------------------------------------------------------------------------------------------------
Net gain on investments 1,248,067
- --------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $1,213,956
- --------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of changes in net assets
Six months ended Year ended
February 28 August 31
1997* 1996
- ----------------------------------------------------------------------------------------------------------------------
Increase in net assets
<S> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------
Operations:
- ----------------------------------------------------------------------------------------------------------------------
Net investment income (loss) $ (34,111) $ 10,136
- ----------------------------------------------------------------------------------------------------------------------
Net realized gain on investments and
foreign currency transactions 275,495 75,275
- ----------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments and
assets and liabilities in foreign currencies 972,572 152,007
- ----------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 1,213,956 237,418
- ----------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
- ----------------------------------------------------------------------------------------------------------------------
From net investment income
Class A (61,397) --
- ----------------------------------------------------------------------------------------------------------------------
Class B (25,675) --
- ----------------------------------------------------------------------------------------------------------------------
Class M (3,552) --
- ----------------------------------------------------------------------------------------------------------------------
From net realized gain on investments
Class A (33,131) --
- ----------------------------------------------------------------------------------------------------------------------
Class B (14,651) --
- ----------------------------------------------------------------------------------------------------------------------
Class M (2,113) --
- ----------------------------------------------------------------------------------------------------------------------
Increase from capital share transactions (Note 4) 29,551,053 191,310
- ----------------------------------------------------------------------------------------------------------------------
Total increase in net assets 30,624,490 428,728
Net assets
- ----------------------------------------------------------------------------------------------------------------------
Beginning of period 2,428,728 2,000,000
- ----------------------------------------------------------------------------------------------------------------------
End of period (including distributions in excess of
net investment income of $61,839 and undistributed
net investment income of $62,896) $33,053,218 $2,428,728
- ----------------------------------------------------------------------------------------------------------------------
* Unaudited
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Financial highlights
(For a share outstanding throughout the period)
CLASS A
- ---------------------------------------------------------------------------------
Six months
ended For the Period
Per-share Feb. 28 Dec. 28, 1995+
operating performance (Unaudited) to Aug. 31
- ---------------------------------------------------------------------------------
1997 1996
- ---------------------------------------------------------------------------------
<S> <C> <C>
Net asset value,
beginning of period $9.47 $8.50
- ---------------------------------------------------------------------------------
Investment operations
- ---------------------------------------------------------------------------------
Net investment income (.01)(c)(d) .04 (c)(d)
- ---------------------------------------------------------------------------------
Net realized and unrealized
gain on investments 1.04 .93
- ---------------------------------------------------------------------------------
Total from
investment operations 1.03 .97
- ---------------------------------------------------------------------------------
Less distributions:
- ---------------------------------------------------------------------------------
From net
investment income (.07) --
- ---------------------------------------------------------------------------------
From net realized gain
on investments (.04) --
- ---------------------------------------------------------------------------------
Total distributions (.11) --
- ---------------------------------------------------------------------------------
Net asset value,
end of period $10.39 $9.47
- ---------------------------------------------------------------------------------
Ratios and supplemental data
- ---------------------------------------------------------------------------------
Total investment return
at net asset value (%)(a) 10.89* 11.41*
- ---------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $18,613 $2,429
- ---------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(b) 1.03*(c) 1.26*(c)
- ---------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (%) (.19)*(c) .44*(c)
- ---------------------------------------------------------------------------------
Portfolio turnover (%) 60.64* 55.87*
- ---------------------------------------------------------------------------------
Average commission
rate paid $.0154 $.0181
- ---------------------------------------------------------------------------------
+ Commencent of operations.
* Not annualized.
(a) Total investment return does not reflect the effect of sales charges.
(b) Includes amounts paid through expense offset and brokerage service
arrangements (Note 2).
(c) Reflects an expense limitation in effect during the period. (Note 2).
As a result of such limitation, expenses for class A reflect a reduction
of approximately $0.08 per share for the year ended August 31, 1996.
Expenses for the period ended February 28, 1997 reflect a reduction of $0.02,
$0.01, and $0.02 for class A, class B, and class M, respectively.
(d) Per share net investment income has been determined on the basis of the
weighted average number of shares outstanding during the period.
</TABLE>
<TABLE>
<CAPTION>
Financial highlights
(For a share outstanding throughout the period)
CLASS B
- ----------------------------------------------------------------------------
For the Period
Oct. 30, 1996+
Per-share to Feb. 28
operating performance (Unaudited)
- ----------------------------------------------------------------------------
1997
- ----------------------------------------------------------------------------
<S> <C>
Net asset value,
beginning of period $9.82
- ----------------------------------------------------------------------------
Investment operations
- ----------------------------------------------------------------------------
Net investment income (.04)(c)(d)
- ----------------------------------------------------------------------------
Net realized and unrealized
gain on investments .70
- ----------------------------------------------------------------------------
Total from
investment operations .66
- ----------------------------------------------------------------------------
Less distributions:
- ----------------------------------------------------------------------------
From net
investment income (.06)
- ----------------------------------------------------------------------------
From net realized gain
on investments (.04)
- ----------------------------------------------------------------------------
Total distributions (.10)
- ----------------------------------------------------------------------------
Net asset value,
end of period $10.38
- ----------------------------------------------------------------------------
Ratios and supplemental data
- ----------------------------------------------------------------------------
Total investment return
at net asset value (%)(a) 6.80*
- ----------------------------------------------------------------------------
Net assets, end of period
(in thousands) $12,849
- ----------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(b) .96*(c)
- ----------------------------------------------------------------------------
Ratio of net investment income
to average net assets (%) (.19)*(c)
- ----------------------------------------------------------------------------
Portfolio turnover (%) 60.64*
- ----------------------------------------------------------------------------
Average commission
rate paid $.0154
- ----------------------------------------------------------------------------
+ Commencent of operations.
* Not annualized.
(a) Total investment return does not reflect the effect of sales charges.
(b) Includes amounts paid through expense offset and brokerage service
arrangements (Note 2).
(c) Reflects an expense limitation in effect during the period. (Note 2).
As a result of such limitation, expenses for class A reflect a
reduction of approximately $0.08 per share for the year ended August 31, 1996.
Expenses for the period ended February 28, 1997 reflect a reduction of $0.02,
$0.01, and $0.02 for class A, class B, and class M, respectively.
(d) Per share net investment income has been determined on the basis of the
weighted average number of shares outstanding during the period.
</TABLE>
<TABLE>
<CAPTION>
Financial highlights
(For a share outstanding throughout the period)
CLASS M
- -----------------------------------------------------------------------
For the Period
Oct. 30, 1996+
Per-share to Feb. 28
operating performance (Unaudited)
- -----------------------------------------------------------------------
1997
- -----------------------------------------------------------------------
<S> <C>
Net asset value,
beginning of period $9.82
- -----------------------------------------------------------------------
Investment operations
- -----------------------------------------------------------------------
Net investment income (.03)(c)(d)
- -----------------------------------------------------------------------
Net realized and unrealized
gain on investments .69
- -----------------------------------------------------------------------
Total from
investment operations .66
- -----------------------------------------------------------------------
Less distributions:
- -----------------------------------------------------------------------
From net
investment income (.06)
- -----------------------------------------------------------------------
From net realized gain
on investments (.04)
- -----------------------------------------------------------------------
Total distributions (.10)
- -----------------------------------------------------------------------
Net asset value,
end of period $10.38
- -----------------------------------------------------------------------
Ratios and supplemental data
- -----------------------------------------------------------------------
Total investment return
at net asset value (%)(a) 6.80*
- -----------------------------------------------------------------------
Net assets, end of period
(in thousands) $1,591
- -----------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(b) .87*(c)
- -----------------------------------------------------------------------
Ratio of net investment income
to average net assets (%) (.12)*(c)
- ----------------------------------------------------------------------
Portfolio turnover (%) 60.64*
- -----------------------------------------------------------------------
Average commission
rate paid $.0154
- -----------------------------------------------------------------------
+ Commencent of operations.
* Not annualized.
(a) Total investment return does not reflect the effect of sales charges.
(b) Includes amounts paid through expense offset and brokerage service
arrangements (Note 2).
(c) Reflects an expense limitation in effect during the period. (Note 2).
As a result of such limitation, expenses for class A reflect a reduction
of approximately $0.08 per share for the year ended August 31, 1996.
Expenses for the period ended February 28, 1997 reflect a reduction of
$0.02, $0.01, and $0.02 for class A, class B, and class M, respectively.
(d) Per share net investment income has been determined on the basis
of the weighted average number of shares outstanding during the period.
</TABLE>
Notes to financial statements
February 28, 1997 (Unaudited)
Note 1
Significant accounting policies
Putnam International Voyager Fund, formerly Putnam Genesis Fund (the "fund")
is one of a series of Putnam Investment Funds (the "Trust") which is
registered under the Investment Company Act of 1940, as amended, as a
diversified, open-ended management investment company. The fund seeks
long-term capital appreciation by investing primarily in equity securities of
small-and mid-capitalization companies whose principle place of business is
located outside of the United States or whose securities are principally
traded on foreign markets.
The fund offers class A, class B and class M shares. The fund began offering
class B and M shares on October 30, 1996. Class A shares are sold with a
maximum front-end sales charge of 5.75%. Class B shares, which convert to
class A shares after approximately eight years, do not pay a front-end sales
charge, but pay a higher ongoing distribution fee than class A shares, and are
subject to a contingent deferred sales charge, if those shares are redeemed
within six years of purchase. Class M shares are sold with a maximum front-end
sales charge of 3.50% and pay an ongoing distribution fee that is lower than
class B shares and higher than class A shares.
Expenses of the fund are borne pro-rata by the holders of each class of
shares, except that each class bears expenses unique to that class (including
the distribution fees applicable to such class). Each class votes as a class
only with respect to its own distribution plan or other matters on which a
class vote is required by law or determined by the Trustees. Shares of each
class would receive their pro-rata share of the net assets of the fund, if the
fund were liquidated. In addition, the Trustees declare separate dividends on
each class of shares.
The following is a summary of significant accounting policies consistently
followed by the fund in the preparation of its financial statements. The
preparation of financial statements is in conformity with generally accepted
accounting principles and requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities. Actual
results could differ from those estimates.
A) Security valuation Investments for which market quotations are readily
available are stated at market value, which is determined using the last
reported sale price, or if no sales are reported -- as in the case of some
securities traded over-the-counter -- the last reported bid price. Securities
quoted in foreign currencies are translated into U.S. dollars at the current
exchange rate. Short-term investments having remaining maturities of 60 days
or less are stated at amortized cost, which approximates market value
following procedures approved by the Trustees.
B) Joint trading account Pursuant to an exemptive order issued by the
Securities and Exchange Commission, the fund may transfer uninvested cash
balances into a joint trading account along with the cash of other registered
investment companies and certain other accounts managed by Putnam Investment
Management, Inc. ("Putnam Management"), the fund's Manager, a wholly-owned
subsidiary of Putnam Investments, Inc.. These balances may be invested in one
or more repurchase agreements and/or short-term money market instruments.
C) Repurchase agreements The fund, or any joint trading account, through its
custodian, receives delivery of the underlying securities, the market value of
which at the time of purchase is required to be in an amount at least equal to
the resale price, including accrued interest. Putnam Management is responsible
for determining that the value of these underlying securities is at all times
at least equal to the resale price, including accrued interest.
D) Security transactions and related investment income Security transactions
are accounted for on the trade date (date the order to buy or sell is
executed). Interest income is recorded on the accrual basis. Dividend income
is recorded on the ex-dividend date except that certain dividends from foreign
securities are recorded as soon as the fund is informed of the ex-dividend
date.
E) Foreign currency translation The accounting records of the fund are
maintained in U.S. dollars. The market value of foreign securities, currency
holdings, other assets and liabilities are recorded in the books and records
of the fund after translation to U.S. dollars based on the exchange rates on
that day. The cost of each security is determined using historical exchange
rates. Income and withholding taxes are translated at prevailing exchange
rates when accrued or incurred. The fund does not isolate that portion of
realized or unrealized gains or losses resulting from changes in the foreign
exchange rate on investments from fluctuations arising from changes in the
market prices of the securities. Such fluctuations are included with the net
realized and unrealized gain or loss on investments. Net realized gains and
losses on foreign currency transactions represent net exchange gains or losses
on disposition of foreign currencies and the difference between the amount of
investment income and foreign withholding taxes recorded on the fund's books
and the U.S. dollar equivalent amounts actually received or paid. Net
unrealized gains and losses on foreign currency transactions arise from
changes in the value of assets and liabilities other than investments at the
period end, resulting from changes in the exchange rate.
F) Federal taxes It is the policy of the fund to distribute all of its taxable
income within the prescribed time and otherwise comply with the provisions of
the Internal Revenue Code applicable to regulated investment companies. It is
also the intention of the fund to distribute an amount sufficient to avoid
imposition of any excise tax under Section 4982 of the Internal Revenue Code
of 1986. Therefore, no provision has been made for federal taxes on income,
capital gains or unrealized appreciation on securities held nor for excise tax
on income and capital gains.
G) Distributions to shareholders Distributions to shareholders from net
investment income are recorded by the fund on the ex-dividend date. Capital
gain distributions, if any, are recorded on the ex-dividend date and paid at
least annually. The amount and character of income and gains to be distributed
are determined in accordance with income tax regulations which may differ from
generally accepted accounting principles. Reclassifications are made to the
fund's capital accounts to reflect income and gains available for distribution
(or available capital loss carryovers) under income tax regulations.
H) Expenses of the trust Expenses directly charged or attributable to any fund
will be paid from the assets of that fund. Generally, expenses of the trust
will be allocated among and charged to the assets of each fund on a basis that
the Trustees deem fair and equitable, which may be based on the relative
assets of each fund or the nature of the services performed and relative
applicability to each fund.
I) Unamortized organization expenses Expenses incurred by the fund in
connection with its organization, its registration with the Securities and
Exchange Commission and with various states and the initial public offering of
its shares were $3,662. These expenses are being amortized on projected net
asset levels over a five-year period. The fund will reimburse Putnam
Management for the payment of these expenses.
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: 1.20% of the first $500 million of
average net assets, 1.10% of the next $500 million, 1.05% of the next $500
million, 1.00% of the next $5 billion, 0.975% of the next $5 billion, 0.955%
of the next $5 billion, 0.94% of the next $5 billion, and 0.93% thereafter.
Putnam Management has agreed to limit its compensation (and, to the extent
necessary, bear other expenses) through August 31, 1997, to the extent that
expenses of the fund (exclusive of brokerage, interest, taxes, deferred
organizational and extraordinary expense, credits from Putnam Fiduciary Trust
Company (PFTC), a wholly-owned subsidiary of Putnam Investments, Inc. and
payments under the Trust's distribution plan) would exceed an annual rate of
1.85% of the fund's average net assets.
The fund reimburses Putnam Management for the compensation and related
expenses of certain officers of the fund and their staff who provide
administrative services to the fund. The aggregate amount of all such
reimbursements is determined annually by the Trustees.
Custodial functions for the fund's assets are provided by Putnam Fiduciary
Trust Company (PFTC), a wholly-owned subsidiary of Putnam Investments, Inc.
Investor servicing agent functions are provided by Putnam Investor Services, a
division of PFTC.
For the six months ended February 28, 1997, fund expenses were reduced by
$15,318 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.
Trustees of the fund receive an annual Trustees fee of $100 and an additional
fee for each Trustee's meeting attended. Trustees who are not interested
persons of Putnam Management and who serve on committees of the Trustees
receive additional fees for attendance at certain committee meetings.
The fund adopted a Trustee Fee Deferral Plan (the "Plan") which allows the
Trustees to defer the receipt of all or a portion of Trustees Fees payable on
or after July 1, 1995. The deferred fees remain in the fund and are invested
in certain Putnam funds until distribution in accordance with the Plan.
The fund has adopted an unfunded noncontributory defined benefit pension plan
(the "Pension Plan") covering all Trustees of the fund who have served as
Trustee for at least five years. Benefits under the Pension Plan are equal to
50% of the Trustee's average total retainer and meeting fees for the three
years preceding retirement. Pension expense for the fund is included in
Compensation of Trustees in the Statement of operations. Accrued pension
liability is included in Payable for compensation of Trustees in the Statement
of assets and liabilities.
The fund has adopted distribution plans (the "Plans") with respect to its
class A, class B and class M shares pursuant to Rule 12b-1 under the
Investment Company Act of 1940. The purpose of the Plans is to compensate
Putnam Mutual Funds Corp., a wholly-owned subsidiary of Putnam Investments
Inc., for services provided and expenses incurred by it in distributing shares
of the fund. The Plans provide for payments by the fund to Putnam Mutual Funds
Corp. at an annual rate up to 0.35%, 1.00% and 1.00% of the average net assets
attributable to class A, class B and class M shares, respectively. The
Trustees have approved payment by the fund at an annual rate of 0.25%, 1.00%
and 0.75% of the average net assets attributable to class A, class B and class
M shares respectively.
For the six months ended February 28, 1997, Putnam Mutual Funds Corp., acting
as underwriter received net commissions of $31,100 and $1,670 from the sale of
class A and class M shares, respectively and $2,519 in contingent deferred
sales charges from redemptions of class B shares. A deferred sales charge of
up to 1% is assessed on certain redemptions of class A shares. For the six
months ended February 28, 1997, Putnam Mutual Funds Corp., acting as
underwriter received no monies on class A redemptions.
Note 3
Purchase and sales of securities
During the six months ended February 28, 1997, purchases and sales of
investment securities other than short-term investments aggregated $34,762,025
and $6,838,202, respectively. There were no purchases and sales of U.S.
government obligations. In determining the net gain or loss on securities
sold, the cost of securities has been determined on the identified cost basis.
Note 4
Capital shares
At February 28, 1997, there was an unlimited number of shares of beneficial
interest authorized. Transactions in capital shares were as follows:
Six months ended
February 28, 1997
- ------------------------------------------------------------
Class A Shares Amount
- ------------------------------------------------------------
Shares sold 1,796,533 $18,170,576
- ------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 8,876 88,142
- ------------------------------------------------------------
1,805,409 18,258,718
Shares
repurchased (269,636) (2,769,690)
- ------------------------------------------------------------
Net increase 1,535,773 $15,489,028
- ------------------------------------------------------------
For the period
December 28, 1995
(commencement of
operations) to
August 31, 1996
- ------------------------------------------------------------
Class A Shares Amount
- ------------------------------------------------------------
Shares sold 21,574 $194,865
- ------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions -- --
- ------------------------------------------------------------
21,574 194,865
Shares
repurchased (379) (3,555)
- ------------------------------------------------------------
Net increase 21,195 $191,310
- ------------------------------------------------------------
For the period
October 30, 1996
(commencement of
operations) to
February 28, 1997
- ------------------------------------------------------------
Class B Shares Amount
- ------------------------------------------------------------
Shares sold 1,310,410 $13,249,229
- ------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 3,637 36,119
- ------------------------------------------------------------
1,314,047 13,285,348
Shares
repurchased (75,747) (771,778)
- ------------------------------------------------------------
Net increase 1,238,300 $12,513,570
- ------------------------------------------------------------
At February 28, 1997, Putnam Management owned 291,699 shares
of the fund (9.16% of shares outstanding), valued at $3,030,753.
For the period
October 30, 1996
(commencement of
operations) to
February 28, 1997
- ------------------------------------------------------------
Class M Shares Amount
- ------------------------------------------------------------
Shares sold 167,311 $1,689,329
- ------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 570 5,665
- ------------------------------------------------------------
167,881 1,694,994
Shares
repurchased (14,603) (146,539)
- ------------------------------------------------------------
Net increase 153,278 $1,548,455
- ------------------------------------------------------------
WELCOME TO
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Fund information
INVESTMENT MANAGER
Putnam Investment
Management, Inc.
One Post Office Square
Boston, MA 02109
MARKETING SERVICES
Putnam Mutual Funds Corp.
One Post Office Square
Boston, MA 02109
CUSTODIAN
Putnam Fiduciary Trust Company
LEGAL COUNSEL
Ropes & Gray
TRUSTEES
George Putnam, Chairman
William F. Pounds, Vice Chairman
Jameson Adkins Baxter
Hans H. Estin
John A. Hill
Ronald J. Jackson
Elizabeth T. Kennan
Lawrence J. Lasser
Robert E. Patterson
Donald S. Perkins
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
John D. Hughes
Senior Vice President and Treasurer
Lawrence J. Lasser
Vice President
Gordon H. Silver
Vice President
Tim Ferguson
Vice President
Brett C. Browchuk
Vice President
Justin M. Scott
Vice President and Fund Manager
William N. Shiebler
Vice President
John R. Verani
Vice President
Paul M. O'Neil
Vice President
Beverly Marcus
Clerk and Assistant Treasurer
This report is for the information of shareholders of Putnam International
Voyager Fund. It may also be used as sales literature when preceded or
accompanied by the current prospectus, which gives details of sales charges,
investment objectives, and operating policies of the fund, and the most recent
copy of Putnam's Quarterly Performance Summary. For more information, or to
request a prospectus, call toll free: 1-800-225-1581. You can also learn more
at Putnam Investments' website: http://www.putnaminv.com.
Shares of mutual funds are not deposits or obligations of, or guaranteed or
endorsed by, any financial institution, are not insured by the Federal Deposit
Insurance Corporation (FDIC), the Federal Reserve Board or any other agency,
and involve risk, including the possible loss of principal amount invested.
[LOGO OMITTED]
PUTNAM INVESTMENTS
The Putnam Funds
One Post Office Square
Boston, Massachusetts 02109
- --------------------
Bulk Rate
U.S. Postage
PAID
Putnam
Investments
- --------------------
32141-2AZ/2CI/2CJ 4/97
