Putnam
Global Growth
and Income
Fund
SEMIANNUAL REPORT
March 31, 1997
[LOGO: BOSTON * LONDON * TOKYO]
The following report contains a list of your fund's portfolio holdings and
complete financial statements for the six months ended 3/31/97. Additional
details, including fund strategy, performance, and managers' outlook, will
be provided in the annual report, which will cover the 12 months ended
9/30/97.
Portfolio of investments owned
March 31, 1997 (Unaudited)
<TABLE>
<CAPTION>
COMMON STOCKS (94.5%) *
NUMBER OF SHARES VALUE
Advertising (0.3%)
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------
48 Publicitas Holding S.A. (Switzerland) $ 8,599
Aerospace and Defense (1.1%)
- -------------------------------------------------------------------------------------------------------
130 General Motors Corp. Class H 7,053
105 Lockheed Martin Corp. 8,820
3,100 Rolls-Royce PLC (United Kingdom) 11,592
--------------
27,465
Airlines (0.8%)
- -------------------------------------------------------------------------------------------------------
115 Delta Air Lines, Inc. 9,674
305 K.L.M.-Royal Dutch Airlines (Netherlands) 9,093
--------------
18,767
Alcoholic Beverages (0.4%)
- -------------------------------------------------------------------------------------------------------
255 Anheuser-Busch Cos., Inc. 10,742
Appliances (0.7%)
- -------------------------------------------------------------------------------------------------------
140 Electrolux AB (Sweden) 8,873
200 Whirlpool Corp. 9,525
--------------
18,398
Automotive (3.5%)
- -------------------------------------------------------------------------------------------------------
36 Bayerische Motoren Werke (BMW) AG (Germany) 28,998
270 Chrysler Corp. 8,100
110 Eaton Corp. 7,796
295 Ford Motor Co. 9,256
330 General Motors Corp. 18,274
285 TRW, Inc. 14,749
--------------
87,173
Banks (13.7%)
- -------------------------------------------------------------------------------------------------------
3,768 Allied Irish Banks PLC (Ireland) 25,827
9 Baer Holdings AG (Switzerland) 10,811
280 Banc One Corp. 11,130
1 Bank of Ireland (Ireland) + 8
120 BankAmerica Corp. 12,090
195 Bankers Trust New York Corp. 15,990
900 Bansud S.A. Class B (Argentina) + 12,693
140 Comerica, Inc. 7,893
200 CoreStates Financial Corp. 9,500
2,500 Dao Heng Bank Group Ltd. (Hong Kong) 11,421
4,300 Den norske Bank ASA (Norway) 18,597
130 Dresdner Bank AG (Germany) 4,604
75 First of America Bank Corp. 4,481
360 Fleet Financial Group, Inc. 20,610
2,000 Guoco Group Ltd. (Hong Kong) 9,886
770 HSBC Holdings PLC (United Kingdom) 18,866
26 Kredietbank N.V. (Belgium) 9,344
245 Keycorp 11,944
180 Morgan (J.P.) & Co., Inc. 17,685
235 National City Corp. 10,957
1,635 National Westminster Bancorp Inc. (United Kingdom) 18,408
220 NationsBank Corp. 12,183
195 Norwest Corp. 9,019
310 PNC Bank Corp. 12,400
110 Societe Generale (France) 12,824
115 Summit Bancorp 5,031
18 Union Bank of Switzerland (Switzerland) 16,080
2,215 Westpac Banking Corp. (Australia) 12,873
--------------
343,155
Basic Industrial Products (1.1%)
- -------------------------------------------------------------------------------------------------------
215 Cooper Industries, Inc. 9,326
230 General Signal Corp. 8,999
300 Sommer Allibert (France) 9,408
--------------
27,733
Broadcasting (0.5%)
- -------------------------------------------------------------------------------------------------------
125 Societe Television Francaise 1 (France) 12,469
Building Products (2.6%)
- -------------------------------------------------------------------------------------------------------
115 Armstrong World Industries, Inc. 7,446
1,886 CRH PLC (Ireland) 18,570
195 Lafarge Coppee (France) 13,468
4,000 Pioneer International Ltd. (Australia) 13,801
18 Sulzer AG (Switzerland) 11,743
--------------
65,028
Chemicals (4.3%)
- -------------------------------------------------------------------------------------------------------
135 Akzo-Nobel N.V. (Netherlands) 19,362
695 Bayer AG ADR (Germany) 28,779
104 Ciba Specialty Chemicals AG (Switzerland) + 8,544
120 Dow Chemical Co. 9,600
110 du Pont (E.I.) de Nemours & Co. 11,660
205 Eastman Chemical Co. 11,019
950 Imperial Chemical Ind. PLC (United Kingdom) 10,851
255 Witco Chemical Corp. 8,670
--------------
108,485
Combined Utilities (0.6%)
- -------------------------------------------------------------------------------------------------------
275 Veba (Vereinigte Elektrizitaets Bergwerks) AG (Germany) + 15,497
Computer Services (0.4%)
- -------------------------------------------------------------------------------------------------------
275 NCR Corp. + 9,694
Computer Software (0.3%)
- -------------------------------------------------------------------------------------------------------
205 Computer Associates Intl., Inc. 7,969
Computers (0.7%)
- -------------------------------------------------------------------------------------------------------
135 IBM Corp. 18,546
Conglomerates (2.4%)
- -------------------------------------------------------------------------------------------------------
3,000 BTR PLC (United Kingdom) 13,112
225 ITT Industries, Inc. 5,034
205 Minnesota Mining & Manufacturing Co. 17,323
2,825 Tomkins PLC (United Kingdom) 12,625
160 United Technologies Corp. 12,040
--------------
60,134
Consumer Products (1.5%)
- -------------------------------------------------------------------------------------------------------
180 Kimberly-Clark Corp. 17,888
100 Unilever N.V. (Netherlands) 19,506
--------------
37,394
Consumer Services (0.4%)
- -------------------------------------------------------------------------------------------------------
4 Kuoni Reisen AG (Switzerland) 11,212
Containers (0.4%)
- -------------------------------------------------------------------------------------------------------
170 Temple Inland, Inc. 8,925
Cosmetics (0.4%)
- -------------------------------------------------------------------------------------------------------
195 Avon Products, Inc. 10,238
Electric Utilities (2.1%)
- -------------------------------------------------------------------------------------------------------
175 Carolina Power & Light Co. 6,344
310 Central & South West Corp. 6,626
195 Cinergy Corp. 6,654
305 Edison International 6,863
190 Empresa Nacional de Electricidad S.A. (Spain) 12,231
160 Potomac Electric Power Co. 3,920
135 Public Service Co. of Colorado 5,231
145 Union Electric Co. 5,347
--------------
53,216
Electronics and Electrical Equipment (5.4%)
- -------------------------------------------------------------------------------------------------------
200 Emerson Electric Co. 9,000
60 General Electric Co. 5,955
4,045 General Electric Co. PLC (United Kingdom) 24,777
235 Hewlett-Packard Co. 12,514
200 Motorola, Inc. 12,075
2,000 NEC Corp. (Japan) 22,650
415 Philips Electronics N.V. (Netherlands) 19,332
1,000 Sharp Corp. (Japan) 11,891
310 Siemens AG (Germany) + 16,628
--------------
134,822
Entertainment (0.3%)
- -------------------------------------------------------------------------------------------------------
115 ITT Corp. + 6,771
Environmental Control (1.0%)
- -------------------------------------------------------------------------------------------------------
145 Compagnie Generale des Eaux (France) 19,654
200 WMX Technologies, Inc. 6,125
--------------
25,779
Farm Equipment (0.4%)
- -------------------------------------------------------------------------------------------------------
250 Deere (John) & Co. 10,875
Finance (2.7%)
- -------------------------------------------------------------------------------------------------------
235 ABN AMRO Holding N.V. (Netherlands) 16,139
270 Argentaria Corp. (Spain) 11,727
190 Beneficial Corp. 12,279
185 Credit Locale de France S.A. (France) 19,896
205 Federal National Mortgage Association 7,406
--------------
67,447
Financial Services (0.2%)
- -------------------------------------------------------------------------------------------------------
70 Credit National (France) 4,279
Food (0.8%)
- -------------------------------------------------------------------------------------------------------
170 General Mills, Inc. 10,561
255 Heinz (H.J.) Co. 10,073
--------------
20,634
Food and Beverages (1.3%)
- -------------------------------------------------------------------------------------------------------
11 Nestle S.A. (Switzerland) 12,796
275 Sara Lee Corp. 11,138
365 Whitman Corp. 8,943
--------------
32,877
Gas Pipelines (0.2%)
- -------------------------------------------------------------------------------------------------------
155 Enron Corp. 5,890
Household Products (0.3%)
- -------------------------------------------------------------------------------------------------------
75 Clorox Co. 8,409
Insurance (3.2%)
- -------------------------------------------------------------------------------------------------------
235 American General Corp. 9,576
195 AON Corp. 11,944
6 Baloise Holding Ltd. (Switzerland) 12,178
70 CIGNA Corp. 10,229
495 Internationale Nederlanden Groep (Netherlands) 19,474
230 Scor (France) 9,352
390 USF&G Corp. 8,385
--------------
81,138
Machinery (0.5%)
- -------------------------------------------------------------------------------------------------------
480 Sandvik AB Class B (Sweden) 12,676
Medical Supplies and Devices (0.7%)
- -------------------------------------------------------------------------------------------------------
405 Baxter International, Inc. 17,466
Metals and Mining (1.3%)
- -------------------------------------------------------------------------------------------------------
390 Freeport-McMoRan Copper & Gold Co., Inc. Class A 11,456
140 Freeport-McMoRan Copper & Gold Co., Inc. Class B 4,253
1,015 RTZ Corp. PLC (United Kingdom) 16,038
--------------
31,747
Office Equipment (0.6%)
- -------------------------------------------------------------------------------------------------------
280 Xerox Corp. 15,925
Oil and Gas (7.1%)
- -------------------------------------------------------------------------------------------------------
130 Amoco Corp. 11,261
1,320 British Petroleum Co. PLC (United Kingdom) 15,294
85 British Petroleum Co PLC ADR (United Kingdom) 11,666
2,360 Ente Nazionale Idrocarburi SPA (ENI) (Italy) 11,962
160 Exxon Corp. 17,240
115 Mobil Corp. 15,022
395 Occidental Petroleum Corp. 9,727
70 Royal Dutch Petroleum Co. PLC ADR (Netherlands) 12,250
1,460 Shell Transportation & Trading (United Kingdom) 25,991
227 Societe Nationale Elf Aquitaine (France) 23,207
275 Total Corp. ADR Class B (France) 23,724
--------------
177,344
Paper (1.0%)
- -------------------------------------------------------------------------------------------------------
410 Svenska Cellulosa AB Class B (Sweden) 9,176
335 Weyerhaeuser Co. 14,949
--------------
24,125
Pharmaceuticals and Biotechnology (7.4%)
- -------------------------------------------------------------------------------------------------------
16 Altana AG (Germany) 12,754
185 American Home Products Corp. 11,100
200 Bristol-Myers Squibb Co. 11,800
1,309 Glaxo Wellcome PLC (United Kingdom) 23,969
490 Pharmacia & Upjohn, Inc. 17,946
665 Pharmacia & Upjohn, Inc. ADR (Sweden) + 25,463
1,000 Sankyo Co., Ltd. (Japan) 27,585
1,100 Santen Pharmaceutical (Japan) 19,042
1,000 Taisho Pharmaceutical Co. (Japan) 23,378
130 Warner-Lambert Co. 11,245
--------------
184,282
Photography (1.8%)
- -------------------------------------------------------------------------------------------------------
1,000 Canon, Inc. (Japan) 21,437
190 Eastman Kodak Co. 14,416
205 Polaroid Corp. 8,149
--------------
44,002
Publishing (0.6%)
- -------------------------------------------------------------------------------------------------------
300 Deluxe Corp. 9,713
100 McGraw-Hill, Inc. 5,113
--------------
14,826
Railroads (1.0%)
- -------------------------------------------------------------------------------------------------------
180 CSX Corp. 8,370
100 Norfolk Southern Corp. 8,525
135 Union Pacific Corp. 7,661
--------------
24,556
Real Estate (1.0%)
- -------------------------------------------------------------------------------------------------------
5,000 Hong Kong Land Holdings Ltd. (Hong Kong) 11,600
115 Meditrust Corp. (R) 4,284
90 Unibail (Union du Credit-Bail Immobilier) (France) 9,440
--------------
25,324
Retail (2.5%)
- -------------------------------------------------------------------------------------------------------
225 Dayton Hudson Corp. 9,394
1,050 Kmart Corp. 12,731
195 May Department Stores Co. 8,873
180 Penney (J.C.) Co., Inc. 8,573
300 Rite Aid Corp. 12,600
195 Sears, Roebuck & Co. 9,799
--------------
61,970
Savings and Loans (0.7%)
- -------------------------------------------------------------------------------------------------------
285 Ahmanson (H.F.) & Co. 10,403
150 Great Western Financial Corp. 6,056
--------------
16,459
Semiconductors (0.9%)
- -------------------------------------------------------------------------------------------------------
177 SGS-Thomson Microelectronics ADR (France) + 11,704
150 Texas Instruments, Inc. 11,231
--------------
22,935
Shipping (0.2%)
- -------------------------------------------------------------------------------------------------------
2,000 Malaysia International Shipping Berhad (Malaysia) 4,962
Steel (0.6%)
- -------------------------------------------------------------------------------------------------------
65 Thyssen AG (Germany) 14,602
Supermarkets (0.7%)
- -------------------------------------------------------------------------------------------------------
3,080 Sainsbury (J) PLC (United Kingdom) 17,149
Telecommunications (0.5%)
- -------------------------------------------------------------------------------------------------------
323 Royal PTT Nederland N.V. ADR (Netherlands) 11,709
Telephone Services (3.5%)
- -------------------------------------------------------------------------------------------------------
300 American Telephone & Telegraph Co. 10,425
895 Deutsche Telekom AG (Germany) + 20,453
185 GTE Corp. 8,626
493 MCI Communications Corp. 17,563
335 Portugal Telecom S.A. (Portugal) + 12,413
370 Sprint Corp. 16,835
--------------
86,315
Telephone Utilities (2.8%)
- -------------------------------------------------------------------------------------------------------
180 Bell Atlantic Corp. 10,958
150 BellSouth Corp. 6,338
200 NYNEX Corp. 9,125
160 Pacific Telesis Group 6,040
170 SBC Communications, Inc. 8,946
185 Telebras Co. ADR (Brazil) 18,939
250 US West Communications, Inc. 8,500
--------------
68,846
Textiles (0.4%)
- -------------------------------------------------------------------------------------------------------
180 Chargeurs S.A. (France) 11,159
Tire and Rubber (0.8%)
- -------------------------------------------------------------------------------------------------------
315 Michelin Corp. Class B (France) 18,669
Tobacco (3.5%)
- -------------------------------------------------------------------------------------------------------
220 American Brands, Inc. 11,138
3,840 B A T Industries PLC (United Kingdom) 32,641
185 Philip Morris Cos., Inc. 21,113
2,000 R.J. Reynolds Berhad (Malaysia) 4,922
235 RJR Nabisco Holdings Corp. 7,579
315 Universal Corp. 9,096
--------------
86,489
Trucking (0.4%)
- -------------------------------------------------------------------------------------------------------
315 Ryder System, Inc. 9,215
- -------------------------------------------------------------------------------------------------------
Total Investments (cost $2,119,080) *** $ 2,362,512
- -------------------------------------------------------------------------------------------------------
* Percentages indicated are based on net assets of $2,500,341.
*** The aggregate identified cost on a tax basis is $2,119,080,
resulting in gross unrealized appreciation and depreciation
of $278,289 and $34,857, respectively, or net unrealized
appreciation of $243,432.
+ Non-income-producing security.
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.
Diversification by Country
Distribution of investments by country of issue at March 31, 1997:
Australia 1.1%
France 8.4
Germany 6.0
Hong Kong 1.4
Ireland 1.9
Japan 5.3
Netherlands 5.4
Spain 1.0
Sweden 2.4
Switzerland 3.9
United Kingdom 10.7
United States 49.0
Other 3.5
-----
Total 100%
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------
Forward Currency Contracts to Sell at March 31, 1997
(aggregate face value $277,303)
Market Aggregate Face Delivery Unrealized
Value Value Date Appreciation
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------
Deutschemarks $ 68,807 $ 72,681 5/12/97 $ 3,874
French Francs 103,582 110,317 5/12/97 6,735
Japanese Yen 46,355 48,351 4/16/97 1,996
Swiss Francs 44,372 45,954 5/12/97 1,582
- ----------------------------------------------------------------------------------------
$14,187
- ----------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of assets and liabilities
March 31, 1997 (Unaudited)
<S> <C>
Assets
- ---------------------------------------------------------------------------------------------------
Investments in securities, at value
(identified cost $2,119,080) (Note 1) $2,362,512
- ---------------------------------------------------------------------------------------------------
Cash 144,861
- ---------------------------------------------------------------------------------------------------
Dividends and other receivables 10,361
- ---------------------------------------------------------------------------------------------------
Receivable for securities sold 19,624
- ---------------------------------------------------------------------------------------------------
Receivable for open forward currency contracts 14,207
- ---------------------------------------------------------------------------------------------------
Receivable for closed forward currency contracts 4,999
- ---------------------------------------------------------------------------------------------------
Receivable from Manager (Note 2) 7,803
- ---------------------------------------------------------------------------------------------------
Unamortized organization expenses (Note 1) 4,990
- ---------------------------------------------------------------------------------------------------
Total assets 2,569,357
Liabilities
- ---------------------------------------------------------------------------------------------------
Payable for securities purchased 40,882
- ---------------------------------------------------------------------------------------------------
Payable for compensation of Manager (Note 2) 9,091
- ---------------------------------------------------------------------------------------------------
Payable for investor servicing and custodian fees (Note 2) 344
- ---------------------------------------------------------------------------------------------------
Payable for compensation of Trustees (Note 2) 915
- ---------------------------------------------------------------------------------------------------
Payable for administrative services (Note 2) 13
- ---------------------------------------------------------------------------------------------------
Payable for organization expenses (Note 1) 6,425
- ---------------------------------------------------------------------------------------------------
Payable for open forward currency contracts 20
- ---------------------------------------------------------------------------------------------------
Payable for closed forward currency contracts 313
- ---------------------------------------------------------------------------------------------------
Other accrued expenses 11,013
- ---------------------------------------------------------------------------------------------------
Total liabilities 69,016
- ---------------------------------------------------------------------------------------------------
Net assets $2,500,341
Represented by
- ---------------------------------------------------------------------------------------------------
Paid-in capital (Notes 1 and 4) 2,116,897
- ---------------------------------------------------------------------------------------------------
Undistributed net investment income (Note 1) 2,600
- ---------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and
foreign currency transactions (Note 1) 123,513
- ---------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments and assets and
liabilities in foreign currencies 257,331
- ---------------------------------------------------------------------------------------------------
Total -- Representing net assets applicable to
capital shares outstanding $2,500,341
Computation of net asset value and offering price
- ---------------------------------------------------------------------------------------------------
Net asset value per share and redemption price per share
(2,500,341 divided by 238,533 shares) $10.48
- ---------------------------------------------------------------------------------------------------
Offering price per share (100/94.25 of $10.48)* $11.12
- ---------------------------------------------------------------------------------------------------
* 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.
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of operations
Six months ended March 31,1997 (Unaudited)
<S> <C>
Investment income:
- --------------------------------------------------------------------------------------------------
Dividends (net of foreign tax of $880) $28,919
- --------------------------------------------------------------------------------------------------
Interest 202
- --------------------------------------------------------------------------------------------------
Total investment income 29,121
Expenses:
- --------------------------------------------------------------------------------------------------
Compensation of Manager (Note 2) 9,088
- --------------------------------------------------------------------------------------------------
Investor servicing and custodian fees (Note 2) 1,979
- --------------------------------------------------------------------------------------------------
Compensation of Trustees (Note 2) 1,912
- --------------------------------------------------------------------------------------------------
Administrative services (Note 2) 23
- --------------------------------------------------------------------------------------------------
Amortization of organization expenses (Note 1) 451
- --------------------------------------------------------------------------------------------------
Reports to shareholders 4,550
- --------------------------------------------------------------------------------------------------
Registration fees 49
- --------------------------------------------------------------------------------------------------
Auditing 3,971
- --------------------------------------------------------------------------------------------------
Legal 2,696
- --------------------------------------------------------------------------------------------------
Other 14
- --------------------------------------------------------------------------------------------------
Fees waived by Manager (Note 2) (7,803)
- --------------------------------------------------------------------------------------------------
Total expenses 16,930
- --------------------------------------------------------------------------------------------------
Expense reduction (Note 2) (1,947)
- --------------------------------------------------------------------------------------------------
Net expenses 14,983
- --------------------------------------------------------------------------------------------------
Net investment income 14,138
- --------------------------------------------------------------------------------------------------
Net realized gain on investments (Notes 1 and 3) 118,999
- --------------------------------------------------------------------------------------------------
Net realized gain on foreign currency transactions (Note 1) 9,454
- --------------------------------------------------------------------------------------------------
Net unrealized appreciation of assets and liabilities in
foreign currencies during the period 11,526
- --------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments during the period 96,578
- --------------------------------------------------------------------------------------------------
Net gain on investments 236,557
- --------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $250,695
- --------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of changes in net assets
Six months ended Year ended
March 31 September 30
1997* 1996
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase in net assets
- --------------------------------------------------------------------------------------------------------------------
Operations:
- --------------------------------------------------------------------------------------------------------------------
Net investment income $ 14,138 $ 38,969
- --------------------------------------------------------------------------------------------------------------------
Net realized gain on investments and
foreign currency transactions 128,453 267,099
- --------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments
and assets and liabilities in foreign currencies 108,104 (19,696)
- --------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 250,695 286,372
- --------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
- --------------------------------------------------------------------------------------------------------------------
From net investment income (44,540) (66,094)
- --------------------------------------------------------------------------------------------------------------------
From net realized gain on investments (252,585) (3,672)
- --------------------------------------------------------------------------------------------------------------------
Increase from capital share transactions (Note 4) 469,884 89,170
- --------------------------------------------------------------------------------------------------------------------
Total increase in net assets 423,454 305,776
Net assets
- --------------------------------------------------------------------------------------------------------------------
Beginning of period 2,076,887 1,771,111
- --------------------------------------------------------------------------------------------------------------------
End of period (including undistributed net investment
income of $2,600 and $33,002, respectively) $2,500,341 $2,076,887
- --------------------------------------------------------------------------------------------------------------------
* Unaudited
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Financial highlights
(For a share outstanding throughout the period)
- ------------------------------------------------------------------------------------------------------------------------------------
Six months
ended For the period
Per-share March 31 Year ended Jan. 3, 1995+
operating performance (Unaudited) September 30 to Sept. 30
- ------------------------------------------------------------------------------------------------------------------------------------
1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value,
beginning of period $10.77 $9.64 $8.50
- ------------------------------------------------------------------------------------------------------------------------------------
Investment operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (a) .07 .21 .27
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain on investments 1.18 1.30 .87
- ------------------------------------------------------------------------------------------------------------------------------------
Total from
investment operations 1.25 1.51 1.14
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
- ------------------------------------------------------------------------------------------------------------------------------------
From net
investment income (.23) (.36) --
- ------------------------------------------------------------------------------------------------------------------------------------
From net realized gain
on investments (1.31) (.02) --
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (1.54) (.38) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $10.48 $10.77 $9.64
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
- ------------------------------------------------------------------------------------------------------------------------------------
Total investment return
at net asset value (%)(b) 12.24 * 16.25 13.41 *
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $2,500 $2,077 $1,771
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(a)(c) .74 * 1.27 .49 *
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (%)(a) .62 * 2.03 3.04 *
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%) 62.77 * 222.89 21.68 *
- ------------------------------------------------------------------------------------------------------------------------------------
Average commission
rate paid (d) $.0283 $.0374
- ------------------------------------------------------------------------------------------------------------------------------------
Effective December 28, 1995, the fund expanded its investment flexibility to include securities outside
of the utilities sector. Information in the table prior to December 28, 1995 may not reflect those
that could have been achieved under the fund's current investment policies.
+ Commencement of operations.
* Not annualized.
(a) Reflects an expense limitation during the period (Note 2). As a result of such limitation, expenses
of the fund for the periods ended March 31, 1997, September 30, 1996 and September 30, 1995,
reflect a reduction of approximately $.03, $.09 and $.20 per share, respectively.
(b) Total investment return assumes dividend reinvestment and does not reflect the effect of sales charges.
(c) Includes amounts paid through expense offset and brokerage service arrangements. (Note 2).
(d) Average commission rate paid on security trades is required for fiscal periods beginning on
or after September 1, 1995.
</TABLE>
Notes to financial statements
March 31, 1997 (Unaudited)
Note 1
Significant accounting policies
Putnam Global Growth and Income 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-end management
investment company. The objective of the fund is to seek capital appreciation
and current income as a secondary objective by investing primarily in common
stocks with a significant portion of its assets in countries outside the
United States.
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 fair market value, which is determined using the last
reported sale price, or, if no sales are reported -- as is the case of some
securities traded over-the-counter -- the last reported sale price. Securities
quoted in foreign currencies are translated into U.S. dollars at the current
exchange rate.
B) Security transactions and related investment income Security transactions
are accounted for on the trade date (date the order to buy or sell is
executed). Interest income is recorded on the accrual basis. 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.
C) Foreign currency translation The accounting records of the fund are
maintained in U.S. dollars. The market value of foreign securities, currency
holdings, other assets and liabilities are recorded in the books and records
of the fund after translation to U.S. dollars based on the exchange rates on
that day. The cost of each security is determined using historical exchange
rates. Income and withholding taxes are translated at prevailing exchange
rates when accrued or incurred. The fund does not isolate that portion of
realized or unrealized gains or losses resulting from changes in the foreign
exchange rate on investments from fluctuations arising from changes in the
market prices of the securities. Such fluctuations are included with the net
realized and unrealized gain or loss on investments. Net realized gains and
losses on foreign currency transactions represent net exchange gains or losses
on closed forward currency contracts, disposition of foreign currencies and
the difference between the amount of investment income and foreign withholding
taxes recorded on the fund's books and the U.S. dollar equivalent amounts
actually received or paid. Net unrealized appreciation and depreciation of
assets and liabilities in foreign currencies arise from changes in the value
of open forward currency contracts and assets and liabilities other than
investments at the period end, resulting from changes in the exchange rate.
D) Forward currency contracts The fund may engage in forward currency
contracts, which are agreements between two parties to buy and sell currencies
at a set price on a future date, to protect against a decline in value
relative to the U.S. dollar of the currencies in which its portfolio
securities are denominated or quoted (or an increase in the value of a
currency in which securities a fund intends to buy are denominated, when a
fund holds cash reserves and short-term investments). The U.S. dollar value of
forward currency contracts is determined using forward currency exchange rates
supplied by a quotation service. The market value of the contract will
fluctuate with changes in currency exchange rates. The contract is "marked to
market" daily and the change in market value is recorded as an unrealized gain
or loss. When the contract is closed, the fund records a realized gain or loss
equal to the difference between the value of the contract at the time it was
opened and the value at the time it was closed. The fund could be exposed to
risk if the value of the currency changes unfavorably, if the counterparties
to the contracts are unable to meet the terms of their contracts or if the
fund is unable to enter into a closing position.
E) Federal taxes It is the policy of the fund to distribute all of its taxable
income within the prescribed time and otherwise comply with the provisions of
the Internal Revenue Code applicable to regulated investment companies. It is
also the intention of the fund to distribute an amount sufficient to avoid
imposition of any excise tax under Section 4982 of the Internal Revenue Code
of 1986. Therefore, no provision has been made for federal taxes on income,
capital gains or unrealized appreciation on securities held and for excise tax
on income and capital gains.
F) 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.
G) 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.
H) 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 $6,425. 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: 0.80% of the first $500 million of
average net assets, 0.70% of the next $500 million, 0.65% of the next $500
million, 0.60% of the next $5 billion, 0.575% of the next $5 billion, 0.555%
of the next $5 billion, 0.54% of the next $5 billion, and 0.53% thereafter.
Through June 30, 1997, Putnam Management has voluntarily agreed to limit
expenses to an annual rate of 1.45% of the fund's average net assets. The
fund's expenses subject to this limitation are exclusive of brokerage,
interest, taxes, amortization of deferred organization expenses, extraordinary
expenses and credits from Putnam Fiduciary Trust Company ("PFTC"), a
wholly-owned subsidiary of Putnam Investments, Inc. if any.
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 PFTC. Investor
servicing agent functions are provided by Putnam Investor Services, a division
of PFTC.
For the six months ended March 31, 1997, fund expenses were reduced by $1,947
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 has 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 a distribution plan (the "Plan") pursuant to Rule 12b-1
under the Investment Company Act of 1940. The purpose of the Plan 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 Plan provides for payment by the fund to
Putnam Mutual Funds Corp. at an annual rate of up to 0.35% of the fund's
average net assets. The fund is not currently making any payments pursuant to
the plan.
For the six months ended March 31, 1997, Putnam Mutual Funds Corp., acting as
underwriter received no commissions from the sale of shares of the fund.
Note 3
Purchase and sales of securities
During the six months ended March 31, 1997, purchases and sales of investment
securities other than short-term investments aggregated $1,427,949 and
$1,299,746, respectively. There were no purchases and sales of U.S. government
obligations. In determining the net gain or loss on securities sold, the cost
of securities has been determined on the identified cost basis.
Note 4
Capital shares
At March 31, 1997, there was an unlimited number of shares of beneficial
interest authorized. Transactions in capital shares were
as follows:
Six months ended
March 31, 1997
- ------------------------------------------------------------
Shares Amount
- ------------------------------------------------------------
Shares sold 16,234 $173,826
- ------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 29,498 296,158
- ------------------------------------------------------------
45,732 469,984
Shares
repurchased (10) (100)
- ------------------------------------------------------------
Net increase 45,722 $469,884
- ------------------------------------------------------------
Year ended
September 30, 1996
- ------------------------------------------------------------
Shares Amount
- ------------------------------------------------------------
Shares sold 1,972 $20,241
- ------------------------------------------------------------
Shares issued in
connection with
reinvestment of
distributions 7,267 69,765
- ------------------------------------------------------------
9,239 90,006
Shares
repurchased (85) (836)
- ------------------------------------------------------------
Net increase 9,154 $89,170
- ------------------------------------------------------------
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
Ian C. Ferguson
Vice President
Brett C. Browchuk
Vice President
Anthony W. Regan
Vice President
Hugh H. Mullin
Vice President and Fund Manager
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 Global Growth and
Income Fund. It may also be used as sales literature when preceded or
accompanied by the current prospectus, which gives details of sales charges,
investment objectives, and operating policies of the fund, and the most recent
copy of Putnam's Quarterly Performance Summary. For more information, or to
request a prospectus, call toll free: 1-800-225-1581. You can also learn more
at the 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.
32897-197 5/97
