N-Q 1 pmt1.txt PUTNAM MASSACHUSETTS TAX EXEMPT INCOME FUND Item 1. Schedule of Investments: -------------------------------- Putnam Massachusetts Tax Exempt Income Fund QUARTERLY PORTFOLIO HOLDINGS 8-31-04
Putnam Massachusetts Tax Exempt Income Fund ----------------------------------------------------------------------------------------------------------- The fund's portfolio August 31, 2004 (Unaudited) KEY TO ABBREVIATIONS AMBAC -- AMBAC Indemnity Corporation FGIC -- Financial Guaranty Insurance Company FSA -- Financial Security Assurance GNMA Coll. -- Government National Mortgage Association Collateralized G.O. Bonds -- General Obligation Bonds IFB -- Inverse Floating Rate Bonds MBIA -- MBIA Insurance Company VRDN -- Variable Rate Demand Notes U.S. Govt. Coll. -- U.S. Government Collateralized XLCA -- XL Capital Assurance Municipal bonds and notes (99.3%) (a) ----------------------------------------------------------------------------------------------------------- Principal amount Rating (RAT) Value ----------------------------------------------------------------------------------------------------------- Massachusetts (92.1%) ----------------------------------------------------------------------------------------------------------- $2,150,000 Boston, Indl. Dev. Fin. Auth. Rev. Bonds (Springhouse, Inc.), 6s, 7/1/28 BB-/P $1,996,813 6,055,000 Boston, Indl. Dev. Fin. Auth. Swr. Fac. Rev. Bonds (Harbor Elec. Energy Co.), 7 3/8s, 5/15/15 Aa3 6,076,677 7,435,000 Boston, Wtr. & Swr. Comm. Rev. Bonds, Ser. A, 5 3/4s, 11/1/13 AA 8,494,488 Fall River, G.O. Bonds, FSA 1,990,000 5s, 2/1/13 Aaa 2,211,388 1,950,000 5s, 2/1/12 Aaa 2,171,813 2,100,000 Framingham, Hsg. Auth. Rev. Bonds, GNMA Coll., 6.35s, 2/20/32 AAA 2,310,000 5,185,000 Holden, G.O. Bonds, FGIC, 5 1/2s, 3/1/20 Aaa 5,722,944 4,000,000 MA Bay Trans. Auth. Rev. Bonds (Gen. Trans. Syst.), Ser. A, 5 1/2s, 3/1/12 Aa2 4,515,000 6,420,000 MA Bay Trans. Auth. Sales Tax Rev. Bonds, Ser. A, 5 1/4s, 7/1/21 AAA 7,190,400 4,000,000 MA State College Bldg. Auth. Rev. Bonds, Ser. B, XLCA, 5 1/2s, 5/1/28 Aaa 4,395,000 7,500,000 MA State Dev. Fin. Agcy. Resource Recvy. Rev. Bonds (Semass Syst.), Ser. A, MBIA, 5 1/2s, 1/1/10 Aaa 8,371,875 MA State Dev. Fin. Agcy. Rev. Bonds 1,325,000 (Beverly Enterprises, Inc.), 7 3/8s, 4/1/09 BB+/P 1,343,219 1,480,000 (Lasell College), 6 3/4s, 7/1/31 BB+/P 1,491,100 1,965,000 (Lasell Village), Ser. A, 6 3/8s, 12/1/25 BB/P 1,979,738 1,950,000 (MA Biomedical Research), Ser. C, 6 1/8s, 8/1/12 A1 2,184,000 1,830,000 (MA Biomedical Research), Ser. C, 5 7/8s, 8/1/10 A1 2,061,038 10,200,000 (WGBH Edl. Foundation), Ser. A, AMBAC, 5 3/4s, 1/1/42 Aaa 11,857,500 1,750,000 (Boston Biomedical Research), 5 3/4s, 2/1/29 Baa3 1,756,562 1,315,000 (Hampshire College), 5.7s, 10/1/34 BBB 1,364,313 1,000,000 (Middlesex School), 5 1/8s, 9/1/23 A1 1,051,250 4,010,000 MA State Edl. Fin. Auth. Rev. Bonds, Ser. E, AMBAC, 5s, 1/1/13 AAA 4,155,362 MA State G.O. Bonds 5,500,000 Ser. D, 5 1/2s, 11/1/19 Aa2 6,325,000 7,500,000 Ser. C, FSA, 5 1/2s, 11/1/10 Aaa 8,559,375 3,750,000 Ser. C, 5 1/4s, 8/1/15 AAA 4,167,188 9,100,000 Ser. B, U.S. Govt. Coll., 5s, 5/1/12 AAA 10,078,250 MA State Hlth. & Edl. Fac. Auth. IFB 7,900,000 (New England Medical Ctr.), MBIA, 8.83s, 7/1/18 (acquired various dates from 10/12/94 to 12/7/95, cost $6,845,962) Aaa 8,255,500 12,000,000 AMBAC, 6s, 7/1/25 Aaa 12,038,876 MA State Hlth. & Edl. Fac. Auth. Rev. Bonds 3,000,000 (Winchester Hosp.), Ser. E, 6 3/4s, 7/1/30 BBB 3,581,250 3,125,000 (UMass Memorial), Ser. C, 6 1/2s, 7/1/21 Baa2 3,269,531 1,000,000 (Milford-Whitinsville Hosp.), Ser. D, 6.35s, 7/15/32 Baa2 1,031,250 1,300,000 (Berkshire Hlth. Syst.), Ser. E, 6 1/4s, 10/1/31 BBB+ 1,342,250 5,000,000 (Harvard U.), Ser. N, 6 1/4s, 4/1/20 Aaa 6,250,000 1,000,000 (Learning Ctr. for Deaf Children), Ser. C, 6 1/8s, 7/1/29 Ba2 972,500 3,000,000 (Hlth. Care Syst. Covenant Hlth.), Ser. E, 6s, 7/1/31 A- 3,120,000 2,100,000 (Partners Healthcare Syst.), Ser. C, 6s, 7/1/15 Aa3 2,357,250 1,460,000 (Partners Healthcare Syst.), Ser. C, 6s, 7/1/14 Aa3 1,649,800 3,015,000 (Newton-Wellesley Hosp.), Ser. E, MBIA, 5.9s, 7/1/11 Aaa 3,169,247 4,000,000 (Partners Healthcare Syst.), Ser. C, 5 3/4s, 7/1/32 Aa3 4,240,000 1,000,000 (Baystate Med. Ctr.), Ser. F, 5.7s, 7/1/27 A1 1,037,500 1,955,000 (Caritas Christian Oblig. Group), Ser. A, 5 5/8s, 7/1/20 BBB 1,957,444 800,000 (Milton Hosp.), Ser. C, 5 1/2s, 7/1/16 BBB 814,000 3,665,000 (Williams College), Ser. G, 5 1/2s, 7/1/14 Aa1 4,100,219 1,265,000 (Milton Hosp.), Ser. C, 5 1/2s, 7/1/11 BBB 1,339,319 2,600,000 (Cape Cod Healthcare), Ser. B, 5.45s, 11/15/23 BBB+ 2,613,000 3,000,000 (Jordan Hosp.), Ser. D, 5 3/8s, 10/1/28 BBB- 2,677,500 4,250,000 (Boston College), Ser. K, 5 3/8s, 6/1/14 Aa3 4,866,250 3,000,000 (Partners Healthcare Syst.), Ser. B, 5 1/4s, 7/1/11 Aa3 3,266,250 10,000,000 (MA Inst. of Tech.), Ser. I-1, 5.2s, 1/1/28 Aaa 10,850,000 1,000,000 (Wellesley College), 5s, 7/1/17 Aa1 1,081,250 2,000,000 (New England Med. Ctr. Hosp.), Ser. H, FGIC, 5s, 5/15/11 Aaa 2,210,000 3,840,000 (New England Med. Ctr. Hosp.), Ser. H, FGIC, 5s, 5/15/10 Aaa 4,238,400 3,660,000 (New England Med. Ctr. Hosp.), Ser. H, FGIC, 5s, 5/15/09 Aaa 4,012,275 6,900,000 MA State Hlth. & Edl. Fac. Auth. VRDN, Ser. D, MBIA, 1.32s, 1/1/35 VMIG1 6,900,000 MA State Hsg. Fin. Agcy. Rev. Bonds 2,000,000 (Rental Mtge.), Ser. E, AMBAC, 5.9s, 7/1/25 Aaa 2,075,000 5,000,000 (Rental Mtge.), Ser. C, AMBAC, 5 5/8s, 7/1/40 Aaa 5,168,750 2,180,000 (Single Fam.), Ser. 86, 5.1s, 12/1/21 Aa2 2,209,975 1,590,000 (Rental Mtge.), Ser. E, FSA, 4.1s, 7/1/06 Aaa 1,621,800 1,520,000 (Rental Mtge.), Ser. E, FSA, 3.95s, 7/1/05 Aaa 1,542,040 MA State Hsg. Fin. Auth. Agcy. Single Fam. Mtge. Rev. Bonds, Ser. 84 435,000 4 1/4s, 12/1/07 Aa2 439,350 360,000 4.05s, 12/1/06 Aa2 366,750 405,000 3.9s, 12/1/05 AA 412,594 MA State Indl. Fin. Agcy. Rev. Bonds 1,500,000 (1st Mtge. Stone Institution & Newton), 7.9s, 1/1/24 BB-/P 1,535,085 5,140,000 (1st Mtge. Loomis & Village), U.S. Govt. Coll., 7 5/8s, 7/1/25 AAA 5,503,861 2,000,000 (1st Mtge. Brookhaven), Ser. A, 7s, 1/1/15 BBB/P 2,055,000 1,250,000 (1st Mtge. Brookhaven), Ser. A, 7s, 1/1/09 BBB/P 1,293,750 4,875,000 (American Hinghan, Wtr. Treatment), 6 3/4s, 12/1/25 BBB/P 5,112,656 3,850,000 (1st Mtge. Berkshire Retirement), Ser. A, 6 5/8s, 7/1/16 BBB- 3,902,937 3,385,000 (Park School), 5.9s, 9/1/26 A3 3,723,500 4,250,000 (MA Eastern Edison Co.), 5 7/8s, 8/1/08 A2 4,304,060 1,650,000 (Wentworth Inst. of Tech.), 5 3/4s, 10/1/28 Baa1 1,709,812 MA State Port Auth. Rev. Bonds, Ser. C, MBIA 2,000,000 5s, 7/1/08 Aaa 2,182,500 5,330,000 5s, 7/1/07 Aaa 5,743,075 MA State Special Oblig. Dedicated Tax Rev. Bonds, FGIC 2,000,000 5 1/4s, 1/1/22 Aaa 2,160,000 5,000,000 5 1/4s, 1/1/20 Aaa 5,475,000 7,000,000 MA State Wtr. Poll. Abatement Rev. Bonds (Pool Program), Ser. 5, 5 3/8s, 8/1/27 Aaa 7,323,750 MA State Wtr. Resource Auth. Rev. Bonds, Ser. A 5,500,000 6 1/2s, 7/15/19 AA 6,771,875 10,000,000 FGIC, 5 3/4s, 8/1/39 Aaa 11,025,000 4,400,000 MA State Wtr. Resource Auth. VRDN (Multi-Modal), Ser. C, 1.38s, 8/1/20 VMIG1 4,400,000 Maynard, G.O. Bonds, MBIA 1,065,000 5s, 2/1/13 Aaa 1,183,481 565,000 5s, 2/1/12 Aaa 629,269 1,760,000 Norwell, G.O. Bonds, FGIC, 5s, 11/15/18 AAA 1,977,800 10,000,000 Quincy, Rev. Bonds, FSA, 5.3s, 1/15/11 Aaa 10,219,600 1,000,000 Springfield, G.O. Bonds, MBIA, 5s, 1/15/13 Aaa 1,106,250 U. MA Bldg. Auth. Rev. Bonds, Ser. 04-1, AMBAC 2,000,000 5 3/8s, 11/1/19 AAA 2,230,000 2,500,000 5 3/8s, 11/1/18 AAA 2,812,500 2,500,000 5 3/8s, 11/1/17 AAA 2,815,625 1,000,000 5 3/8s, 11/1/16 AAA 1,130,000 Westfield, G.O. Bonds, MBIA 2,190,000 5s, 9/1/11 Aaa 2,441,850 2,190,000 5s, 9/1/10 Aaa 2,439,113 1,000,000 Westford, G.O. Bonds, FGIC, 5 1/4s, 4/1/20 Aaa 1,082,500 ------------- 333,197,262 Puerto Rico (7.2%) ----------------------------------------------------------------------------------------------------------- 2,535,000 Children's Trust Fund Tobacco Settlement Rev. Bonds, 5 3/8s, 5/15/33 BBB 2,303,681 Cmnwlth. of PR, Hwy. & Trans. Auth. Rev. Bonds 2,925,000 Ser. Z, MBIA, 6 1/4s, 7/1/13 Aaa 3,568,500 3,000,000 Ser. AA, MBIA, 5 1/2s, 7/1/19 Aaa 3,532,500 10,685,000 Cmnwlth. of PR, Muni. Fin. Agcy. Rev. Bonds, Ser. A, FSA, 4 1/2s, 8/1/11 Aaa 11,633,294 4,500,000 PR Elec. Pwr. Auth. Rev. Bonds, Ser. NN, MBIA, 5 1/4s, 7/1/22 Aaa 5,096,250 ------------- 26,134,225 ----------------------------------------------------------------------------------------------------------- Total Investments (cost $338,278,518) (b) $359,331,487 -----------------------------------------------------------------------------------------------------------
NOTES (a) Percentages indicated are based on net assets of $361,917,560. (RAT) The Moody's or Standard & Poor's ratings indicated are believed to be the most recent ratings available at August 31, 2004 for the securities listed. Ratings are generally ascribed to securities at the time of issuance. While the agencies may from time to time revise such ratings, they undertake no obligation to do so, and the ratings do not necessarily represent what the agencies would ascribe to these securities at August 31, 2004. Securities rated by Putnam are indicated by "/P". (b) The aggregate identified cost on a tax basis is $338,278,518, resulting in gross unrealized appreciation and depreciation of $22,009,979 and $957,010, respectively, or net unrealized appreciation of $21,052,969. The rates shown on VRDN are the current interest rates at August 31, 2004. The rates shown on IFB, which are securities paying interest rates that vary inversely to changes in the market interest rates, are the current interest rates at August 31, 2004. The fund had the following industry group concentrations greater than 10% at August 31, 2004 (as a percentage of net assets): Health care 26.2% Education 16.8 Water & sewer 11.9 The fund had the following insurance concentrations greater than 10% at August 31, 2004 (as a percentage of net assets): MBIA 15.1% AMBAC 12.2 FSA 10.5 FGIC 10.5 Security valuation Tax-exempt bonds and notes are valued at fair value on the basis of valuations provided by an independent pricing service, approved by the Trustees. Such services use information with respect to transactions in bonds, quotations from bond dealers, market transactions in comparable securities and various relationships between securities in determining value. Other investments, including restricted securities, are valued at fair value following procedures approved by the Trustees. Such valuations and procedures are reviewed periodically by the Trustees. For additional information regarding the fund please see the fund's most recent annual or semiannual shareholder report filed on the Securities and Exchange Commission's Web site, www.sec.gov, or visit Putnam's Individual Investor Web site at www.putnaminvestments.com Item 2. Controls and Procedures: -------------------------------- (a) The registrant's principal executive officer and principal financial officer have concluded, based on their evaluation of the effectiveness of the design and operation of the registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the design and operation of such procedures are generally effective to provide reasonable assurance that information required to be disclosed by the registrant in this report is recorded, processed, summarized and reported within the time periods specified in the Commission's rules and forms. (b) Changes in internal control over financial reporting: Not applicable Item 3. Exhibits: ------------------ A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2 under the Investment Company Act of 1940, as amended, are filed herewith. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. NAME OF REGISTRANT By (Signature and Title): /s/ Michael T. Healy -------------------------- Michael T. Healy Principal Accounting Officer Date: October 27, 2004 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title): /s/ Charles E. Porter --------------------------- Charles E. Porter Principal Executive Officer Date: October 27, 2004 By (Signature and Title): /s/ Steven D. Krichmar --------------------------- Steven D. Krichmar Principal Financial Officer Date: October 27, 2004