-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, S+aocmZQzSeDO+SKbl0HxrvM9vC8G3YFsF4Sk10cjgkv3RfJIvsWPqnGU8BefFIl e6wqcwKM2yWBXE4apfcEaw== 0000928816-99-000130.txt : 19990519 0000928816-99-000130.hdr.sgml : 19990519 ACCESSION NUMBER: 0000928816-99-000130 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990331 FILED AS OF DATE: 19990518 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PUTNAM MONEY MARKET FUND CENTRAL INDEX KEY: 0000081248 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 046386436 STATE OF INCORPORATION: MA FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-02608 FILM NUMBER: 99629237 BUSINESS ADDRESS: STREET 1: ONE POST OFFICE SQ STREET 2: MAILSTOP A-14 LEGAL DEPARTMENT CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 6172921471 MAIL ADDRESS: STREET 1: MAILSTOP A-14 LEGAL DEPARTMENT STREET 2: ONE POST OFFICE SQUARE CITY: BOSTON STATE: MA ZIP: 02109 FORMER COMPANY: FORMER CONFORMED NAME: PUTNAM DAILY DIVIDEND TRUST DATE OF NAME CHANGE: 19920703 N-30D 1 PUTNAM MONEY MARKET FUND Putnam Money Market Fund SEMIANNUAL REPORT ON PERFORMANCE AND OUTLOOK 3-31-99 [LOGO: BOSTON * LONDON * TOKYO] From the Chairman [GRAPHIC OMITTED: PHOTO OF GEORGE PUTNAM] [copyright] Karsh, Ottawa Dear Shareholder: The past six months have been a positive, though relatively volatile time for U.S. financial markets. Investors grappled with recurring instability in the emerging markets, an apparent stall in U.S. economic growth, three short-term interest rate cuts by the Federal Reserve Board, and finally the economy's resilient return to strength. Putnam Money Market Fund's recent performance reflects this mixed environment. For the six months ended March 31, 1999, the fund's class A shares returned 2.47% at net asset value. You can find additional performance information on pages 5 and 6. * DURATION ADJUSTMENTS KEEP PACE WITH INTEREST RATES As the economic winds appeared to change during the period, the Fed also shifted its monetary policy. When the economy seemed in danger of stalling during the fall, the Fed stepped in to lower short-term interest rates three times in just seven weeks. Once the economy's growth rate appeared more secure, the Fed adopted a more neutral monetary stance. During the first quarter of calender 1999, market participants actually saw some potential for the Fed to raise rates, as inflation expectations rose, commodity prices began to rise, wage growth stopped declining, and money and credit continued to grow. These expectations were never realized, of course, although Fed Chairman Alan Greenspan did give some spirited anti-inflation rhetoric in his semiannual Humphrey-Hawkins testimony before the Senate on February 23. Successfully managing your fund over the semiannual period required flexibility. Early in the fourth quarter of 1998, your fund's manager, Joanne M. Driscoll, extended duration in order to lock in higher money market yields. As the Fed began to lower interest rates, the fund's extended duration helped maintain its income stream. Toward the end of the year, Joanne brought the duration back to a more neutral position as it became clear that the Fed's easing bias was over. This allowed the fund to take advantage of a cyclical year-end increase in money market yields that generally occurs in December, when businesses issue securities at higher interest rates in order to fund operations over the year's end. * QUALITY EMPHASIS, CONSERVATIVE STRATEGIES CONTINUE With many international financial markets still experiencing difficulties during the fall, investors continued to take comfort in the liquidity, high quality, and relative stability of money market funds. Consequently, conservative, superior quality money market funds such as yours continued to experience record inflows of new capital over the period. Your fund has always made capital preservation and credit quality top priorities, investing in a wide spectrum of high-quality money market securities. Early in the period, the fund manager bolstered quality even further by increasing the portfolio's exposure to U.S. government agency securities, which are among the highest quality investments available. At the same time, she reduced the portfolio's holdings of corporate and bank securities, which were unlikely to perform well in the prevailing flight-to-quality environment. When calm returned to the money markets in the first quarter of 1999, government securities holdings were reduced and the fund's exposure to top quality, higher-yielding commercial paper increased once again. In the months ahead, Joanne will continue to pursue the conservative strategies that have served shareholders well thus far. She will remain watchful for opportunities to boost income while continuing to concentrate on preserving net asset value and maintaining a superior quality portfolio. Respectfully yours, /S/GEORGE PUTNAM George Putnam Chairman of the Trustees May 19, 1999 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 3/31/99, there is no guarantee the fund will continue to hold these securities in the future. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve your investment at $1.00 per share, it is possible to lose money by investing in the fund. PERFORMANCE COMPARISONS (3/31/99) Current return* - ----------------------------------------------- Passbook savings account 1.50% - ----------------------------------------------- Taxable money market fund 7-day yield 4.44 - ----------------------------------------------- 3-month certificate of deposit 3.73 - ----------------------------------------------- Putnam Money Market Fund (7-day yield) - ----------------------------------------------- Class A 4.66 - ----------------------------------------------- Class B 4.16 - ----------------------------------------------- Class C 4.51 - ----------------------------------------------- Class M 4.51 - ----------------------------------------------- The net asset value of money market mutual funds is uninsured and designed to be fixed, while distributions vary daily. Investment returns will fluctuate. The principal value on passbook savings and on bank CDs is generally insured up to certain limits by state and federal agencies. Unlike stocks, which incur more risk, CDs offer a fixed rate of return. Unlike money market funds, bank CDs may be subject to substantial penalties for early withdrawals. * Sources: BankBoston (passbook savings), Bank Rate Monitor (3-month CDs), IBC/Donaghue's Money Fund Report (taxable money market fund compound 7-day yield). Performance summary This section provides information about your fund's performance, which should always be considered in light of its investment strategy. Putnam Money Market Fund is designed for investors seeking current income consistent with capital preservation, stable principal, and liquidity. TOTAL RETURN FOR PERIODS ENDED 3/31/99 Class A Class B Class C Class M (inception date) (10/1/76) (4/27/92) (2/1/99) (12/8/94) NAV NAV CDSC NAV CDSC NAV - ------------------------------------------------------------------------------ 6 months 2.47% 2.24% -2.76% 2.29% 1.29% 2.41% - ------------------------------------------------------------------------------ 1 year 5.18 4.68 -0.32 4.74 3.74 5.04 - ------------------------------------------------------------------------------ 5 years 28.11 24.94 22.94 25.01 25.01 27.16 Annual average 5.08 4.55 4.22 4.57 4.57 4.92 - ------------------------------------------------------------------------------ 10 years 65.78 57.97 57.97 58.06 58.06 63.33 Annual average 5.18 4.68 4.68 4.68 4.68 5.03 - ------------------------------------------------------------------------------ Life of fund 392.54 340.82 340.82 341.08 341.08 376.26 Annual average 7.35 6.82 6.82 6.82 6.82 7.19 - ------------------------------------------------------------------------------ Current return (end of period) - ------------------------------------------------------------------------------ Current 7-day yield1 4.66% 4.16% 4.16% 4.51% 4.51% 4.51% - ------------------------------------------------------------------------------ Current 30-day yield1 4.68 4.18 4.18 4.53 4.53 4.53 - ------------------------------------------------------------------------------ 1The 7-day and 30-day yields are the two most common gauges for measuring money market mutual fund performance. COMPARATIVE INDEX RETURNS FOR PERIODS ENDED 3/31/99 Lipper Money Consumer Market Average price index - ------------------------------------------------------------------------------ 6 months 2.20% 0.98% - ------------------------------------------------------------------------------ 1 year 4.70 1.73 - ------------------------------------------------------------------------------ 5 years 26.76 12.09 Annual average 4.85 2.31 - ------------------------------------------------------------------------------ 10 years 64.58 34.91 Annual average 5.11 3.04 - ------------------------------------------------------------------------------ Life of fund 395.77 186.46 Annual average 7.37 4.79 - ------------------------------------------------------------------------------ Past performance is no assurance of future results. More recent returns may be more or less than those shown. Returns shown for class B, class C and class M shares for periods prior to their inception are derived from the historical performance of class A shares, adjusted to reflect the higher operating expenses applicable to such shares. Certain sales charges may apply to class B, class C and class M shares upon redemption. See the prospectus for complete details. All returns assume reinvestment of distributions at NAV. Fund performance data do not take into account any adjustment for taxes payable on reinvested distributions. Investment returns will fluctuate. DISTRIBUTION INFORMATION 6 months ended 3/31/99 Class A Class B Class C Class M - ------------------------------------------------------------------------------ Distributions (number) 6 6 2 6 - ------------------------------------------------------------------------------ Income $0.024469 $0.022151 $0.007476 $0.023871 - ------------------------------------------------------------------------------ Total $0.024469 $0.022151 $0.007476 $0.023871 - ------------------------------------------------------------------------------ An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve your investment at $1.00 per share, it is possible to lose money by investing in the fund. The fund's holdings do not match those in the Lipper average. Yield data more closely reflect the current earnings of the fund. TERMS AND DEFINITIONS Total return shows how the value of the fund's shares changed over time, assuming you held the shares through the entire period and reinvested all distributions in the fund. Net asset value (NAV) is the value of all your fund's assets, minus any liabilities, divided by the number of outstanding shares. Class A shares generally are fund shares purchased with an initial sales charge. In the case of your fund, which has no sales charge, the reference is to shares purchased or acquired through the exchange of class A shares from another Putnam fund. Exchange of your fund's class A shares into another fund may involve a sales charge, however. Class B and class C shares generally are fund shares purchased with no initial sales charge but subject to a contingent deferred sales charge (CDSC) upon redemption. However, class B and class C shares of your fund can be acquired only through exchange of class B or class C shares from another fund or purchased by certain systematic plan shareholders. A contingent deferred sales charge is a charge applied at the time of redemption of class B and class C shares and assumes redemption at the end of the period. The CDSC schedule will vary depending on whether the shares were acquired through exchange or through a systematic investment plan purchase. Consult your prospectus for details. Class M shares generally have a lower initial sales charge and a higher 12b-1 fee than class A shares and no sales charge on redemption. In the case of your fund, which has no sales charge, exchange of your fund's class M shares into another fund may involve a sales charge, however. COMPARATIVE BENCHMARKS Lipper Money Market Fund Average, used for performance comparison purposes, is an arithmetic average of the total return of all money market mutual funds tracked by Lipper Analytical Services. Lipper is an independent rating organization for the mutual fund industry. Lipper rankings vary for other periods. The fund's holdings do not match those in the Lipper average. 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.
Portfolio of investments owned March 31, 1999 (Unaudited) COMMERCIAL PAPER (88.7%) (a) MATURITY PRINCIPAL AMOUNT DATE VALUE Domestic (57.8%) - -------------------------------------------------------------------------------------------------------------------------- $22,060,000 AES Hawaii, Inc. (Bank of America (LOC)) 4.8s 4/9/99 $ 22,033,528 33,000,000 American General Finance Corp. 4.85s 5/11/99 32,817,721 32,000,000 American General Finance Corp. 4.84s 5/3/99 31,858,027 24,900,000 American General Finance Corp. 4.83s 4/30/99 24,799,778 35,000,000 American General Finance Corp. 4.83s 4/27/99 34,873,213 164,000,000 Associates Corp. Of North America 5.03s 4/1/99 163,977,085 30,000,000 Bank Of New York Co. 4.83s 4/16/99 29,935,600 45,000,000 BankAmerica Corp. 4.87s 5/6/99 44,780,850 27,000,000 BankAmerica Corp. 4.81s 11/3/99 26,217,172 35,000,000 Chase Manhattan Corp. 4.83s 9/22/99 34,178,229 30,000,000 Chevron Transport Corp. 4.95s 4/22/99 29,909,250 30,000,000 Chevron Transport Corp. 4.85s 5/7/99 29,850,458 25,000,000 Chevron Transport Corp. 4.83s 6/10/99 24,761,854 40,000,000 Corporate Receivables Corp. 4.85s 5/4/99 39,816,778 38,000,000 Corporate Receivables Corp. 4.84s 8/31/99 37,218,340 35,000,000 Corporate Receivables Corp. 4.84s 5/27/99 34,731,783 32,600,000 Corporate Receivables Corp. 4.83s 4/28/99 32,477,533 21,000,000 CXC Inc. 4.9s 6/4/99 20,814,208 28,000,000 CXC Inc. 4.86s 9/15/99 27,364,960 37,000,000 CXC Inc. 4.84s 4/21/99 36,895,537 40,000,000 CXC Inc. 4.84s 5/20/99 39,731,111 30,000,000 CXC Inc. 4.83s 4/19/99 29,923,525 25,000,000 Delaware Funding Corp. 4.89s 5/7/99 24,875,125 30,000,000 Eureka Securitization Inc. 4.84s 5/24/99 29,782,200 30,000,000 Eureka Securitization Inc. 4.82s 4/5/99 29,979,917 36,000,000 Falcon Asset Securitization Corp. 4 7/8s 4/20/99 35,902,500 32,205,000 Falcon Asset Securitization Corp. 4 7/8s 4/19/99 32,122,139 36,000,000 Falcon Asset Securitization Corp. 4.85s 6/17/99 35,621,700 30,000,000 Falcon Asset Securitization Corp. 4.85s 4/19/99 29,922,733 40,000,000 Ford Motor Credit Co. 4.83s 4/23/99 39,876,567 37,600,000 Ford Motor Credit Co. 4.81s 4/8/99 37,559,810 22,000,000 Formosa Plastics Corp. (Bank of America (LOC)) 4.95s 6/29/99 21,727,750 42,000,000 General Electric Capital Corp. 4.95s 4/6/99 41,965,350 36,500,000 General Electric Capital Corp. 4.84s 5/12/99 36,293,897 40,000,000 General Electric Capital Corp. 4.83s 6/8/99 39,629,700 20,000,000 General Electric Capital Corp. 4.82s 5/26/99 19,850,044 30,000,000 General Electric Capital Corp. 4.81s 6/7/99 29,727,433 130,000,000 General Motors Acceptance Corp. 5.08s 4/1/99 129,981,655 30,000,000 Goldman Sachs 4.85s 8/17/99 29,438,208 35,000,000 Goldman Sachs 4.85s 7/14/99 34,504,896 22,000,000 Goldman Sachs 4.85s 5/26/99 21,834,022 19,200,000 IBM Credit Corp. 4.87s 4/14/99 19,163,637 30,000,000 IBM Credit Corp. 4.82s 4/13/99 29,947,783 25,000,000 International Business Machines Inc. 4.83s 4/30/99 24,899,375 35,000,000 Lehman Brothers Hldg. 5.08s 5/28/99 34,713,544 30,000,000 Lehman Brothers Hldg. 5.05s 5/17/99 29,802,208 20,000,000 Lehman Brothers Hldg. 4.97s 5/19/99 19,864,706 40,000,000 Metlife Funding. 4.85s 4/26/99 39,859,889 35,000,000 Morgan (J.P.) & Co., Inc. 5.546s 7/7/99 34,994,376 45,000,000 Morgan (J.P.) & Co., Inc. 4.85s 7/12/99 44,375,562 30,000,000 Morgan Stanley Dean Witter & Co. 4.9s 4/8/99 29,967,333 25,000,000 Morgan Stanley Dean Witter & Co. 4.88s 5/18/99 24,837,333 30,000,000 Morgan Stanley Dean Witter & Co. 4.87s 5/10/99 29,837,667 30,000,000 Morgan Stanley Dean Witter & Co. 4.84s 5/28/99 29,766,067 20,000,000 National Rural Utilities Co-operative Finance Corp. 4.82s 6/25/99 19,769,711 25,000,000 PNC Funding Corp. 4.92s 5/27/99 24,805,250 30,000,000 PNC Funding Corp. 4.87s 6/10/99 29,711,858 21,755,000 Preferred Receivables Funding Corp. 5s 4/29/99 21,667,376 42,000,000 Preferred Receivables Funding Corp. 4.88s 5/5/99 41,800,733 24,840,000 Prudential Funding Corp. 5.05s 4/1/99 24,836,515 38,000,000 Sheffield Receivables Corp. 4.88s 4/12/99 37,938,187 35,000,000 Sheffield Receivables Corp. 4.87s 4/15/99 34,928,979 35,000,000 Sheffield Receivables Corp. 4.86s 4/16/99 34,924,400 30,000,000 Sheffield Receivables Corp. 4.83s 4/13/99 29,947,675 25,000,000 USAA Capital Corp. 4.83s 4/1/99 24,996,646 21,000,000 USAA Capital Corp. 4.82s 4/22/99 20,938,143 30,000,000 Wells Fargo & Co. 5.31s 3/31/00 29,988,477 30,000,000 Windmill Funding Corp. 4.9s 4/1/99 29,995,917 21,000,000 Windmill Funding Corp. 4.89s 5/14/99 20,874,490 22,000,000 Windmill Funding Corp. 4.85s 4/16/99 21,952,578 25,000,000 Windmill Funding Corp. 4.83s 4/15/99 24,949,583 36,774,000 Windmill Funding Corp. 4.83s 4/14/99 36,704,926 22,877,000 Windmill Funding Corp. 4 3/4s 9/27/99 22,333,671 -------------- 2,454,656,781 Foreign (30.9%) - -------------------------------------------------------------------------------------------------------------------------- 40,000,000 Abbey National North America Corp. 4.88s (United Kingdom) 4/6/99 39,967,467 38,000,000 Abbey National North America Corp. 4.823s (United Kingdom) 7/2/99 37,526,542 29,000,000 Abbey National North America Corp. 4.74s (United Kingdom) 10/29/99 28,190,513 42,000,000 Abbey National North America Corp. 4.735s (United Kingdom) 4/21/99 41,883,993 25,000,000 Banco de Credito Nacional S.A. 5s (Barclays (LOC)) (United Kingdom) 6/21/99 24,715,278 12,000,000 Banco de Credito Nacional S.A. 4.96s (Barclays (LOC)) (United Kingdom) 5/7/99 11,938,827 26,000,000 Banco De Galicia Y Buenos Aires 4.87s (Dresdner Bank (LOC)) (Germany) 5/20/99 25,824,139 30,000,000 Banco Nacional De Comerico Ext. (Barclays (LOC)) 4 7/8s United Kingdom 4/12/99 29,951,250 29,000,000 Banco Nacional De Comerico Ext. (Barclays (LOC)) 4.83s (United Kingdom) 5/6/99 28,859,930 29,000,000 Bancomer, S.A., Institution de Banca Multiple (Bank Of Montreal (LOC)) 5.05s (Canada) 4/7/99 28,971,524 42,000,000 Bancomer, S.A., Institution de Banca Multiple (Bank Of Montreal (LOC)) 4.95s (Canada) 6/16/99 41,555,325 25,000,000 Bancomer, S.A., Institution de Banca Multiple (Bank Of Montreal (LOC)) 4.87s (Canada) 8/11/99 24,550,201 30,000,000 Bank Of Nova Scotia 4.88s (Canada) 5/25/99 29,776,333 16,000,000 Cemex S.A. (Credit Suisse First Boston (LOC)) 5.05s (Switzerland) 4/9/99 15,979,800 25,000,000 China Merchants (Cayman), Inc. 4.89s (Switzerland) 5/13/99 24,853,979 21,500,000 CBA Delaware Finance 4.84s (Australia) 5/21/99 21,352,582 35,000,000 CBA Delaware Finance 4.83s (Australia) 6/21/99 34,614,942 35,000,000 Contifinancial Corp. (Dresdner Bank AG (LOC)) 5.15s (Germany) 4/29/99 34,854,799 17,500,000 Contifinancial Corp. (Dresdner Bank AG (LOC)) 5s (Germany) 4/28/99 17,431,944 23,000,000 Contifinancial Corp. (Dresdner Bank AG (LOC)) 4.85s (Germany) 6/22/99 22,742,815 36,000,000 Corporacion Andina de Fomento (Barclays (LOC)) 4.85s (United Kingdom) 4/26/99 35,873,900 25,000,000 Credit Suisse First Boston 4.81s (Switzerland) 5/10/99 24,866,389 30,000,000 Credit Suisse First Boston 4.81s (Switzerland) 5/5/99 29,859,708 30,000,000 DaimlerChrysler NA Holding Corp. 4.88s (Germany) 6/8/99 29,719,400 30,000,000 DaimlerChrysler NA Holding Corp. 4.88s (Germany) 5/19/99 29,800,733 35,000,000 DaimlerChrysler NA Holding Corp. 4.86s (Germany) 5/11/99 34,806,275 20,000,000 DaimlerChrysler NA Holding Corp. 4.84s (Germany) 5/21/99 19,862,867 42,000,000 DaimlerChrysler NA Holding Corp. 4.81s (Germany) 4/14/99 41,921,437 43,000,000 Demir Funding Corp. (Bayerische Hypo-und Vereinsbank (LOC)) 4.86s (Germany) 4/12/99 42,930,340 42,000,000 Den Danske Corp. Inc. 4.87s (Denmark) 4/7/99 41,960,228 20,191,000 Den Danske Corp. Inc. 4.85s (Denmark) 5/4/99 20,098,514 34,000,000 Den Danske Corp. Inc. 4.845s (Denmark) 6/17/99 33,643,085 31,000,000 Diageo Capital PLC 4.87s (United Kingdom) 4/7/99 30,970,645 25,000,000 Formosa Plastics Corp. (ABN AMRO Bank N. V. (LOC)) 4.95s (Netherlands) 6/14/99 24,742,188 20,000,000 Formosa Plastics Corp. (ABN AMRO Bank N. V. (LOC)) 4.86s (Netherlands) 5/13/99 19,883,900 25,000,000 Garanti Funding Corp. (Bayerische Hypo-und Vereinsbank (LOC)) 4.8s (Germany) 8/2/99 24,586,667 16,000,000 Girsa Funding Corp. (Societe Generale (LOC)) 4.8s (France) 7/26/99 15,750,400 50,000,000 Girsa Funding Corp. (Societe Generale (LOC)) 4.78s (France) 7/26/99 49,223,250 26,000,000 Glencore Finance Ltd. (ABN AMRO Bank N. V. (LOC)) 4.9s (Netherlands) 4/9/99 25,968,150 18,000,000 Nacional Financiera, S.N.C. (Barclays Bank PLC (LOC)) 4.87s (United Kingdom) 11/12/99 17,449,690 30,000,000 Toronto Dominion Holdings 4.77s (Canada) 11/5/99 29,129,475 20,000,000 Transportation de Gas del Sur S.A. (Dresdner Bank AG (LOC)) 4.86s (Germany) 6/23/99 19,773,200 41,949,000 UBS AG 4.86s (Switzerland) 6/11/99 41,541,256 25,000,000 UBS AF 4.79s (Switzerland) 10/12/99 24,351,354 40,000,000 Westpac Banking Corp. 4.82s (Australia) 7/6/99 39,480,511 -------------- 1,313,735,745 -------------- Total Commercial Paper (cost $3,768,392,526) $3,768,392,526 CERTIFICATES OF DEPOSIT (6.2%) (a) MATURITY PRINCIPAL AMOUNT DATE VALUE - -------------------------------------------------------------------------------------------------------------------------- $53,000,000 Bayerische Landesbank Girozentrate 5.115s (Germany) 3/21/00 $ 52,909,397 35,000,000 Canadian Imperial Bank Of Commerce 5.12s (Canada) 2/23/00 34,984,804 30,000,000 Commerzbank AG 5.09s (Germany) 2/16/00 29,992,347 35,000,000 Deutsche Bank 5.07s (Germany) 1/13/00 34,992,013 30,000,000 Deutsche Bank 5.06s (Germany) 2/8/00 29,990,048 31,000,000 Fleet National Bank 4.87s 4/20/99 31,000,000 27,000,000 Rabobank Nederland 5.71s (Netherlands) 5/21/99 26,996,715 21,000,000 Societe Generale 5.785s (France) 5/12/99 20,999,154 -------------- Total Certificates of Deposit (cost $261,864,478) $ 261,864,478 U. S. GOVERNMENT & AGENCY OBLIGATIONS (1.5%) (a) MATURITY PRINCIPAL AMOUNT DATE VALUE - -------------------------------------------------------------------------------------------------------------------------- $35,000,000 Federal Home Loan Mortgage Corp. 4.81s 6/24/99 $ 34,602,508 30,000,000 Federal Home Loan Mortgage Corp. 4.81s 6/15/99 29,696,633 -------------- Total U.S. Government & Agency Obligations (cost $64,299,141) $ 64,299,141 BANK NOTES (1.6%) (a) MATURITY PRINCIPAL AMOUNT DATE VALUE - -------------------------------------------------------------------------------------------------------------------------- $40,000,000 Nationsbank NA 4.96s 6/9/99 $ 40,000,000 30,000,000 Fleet National Bank 4.88s 7/30/99 30,000,000 -------------- Total Bank Notes (cost $70,000,000) $ 70,000,000 - -------------------------------------------------------------------------------------------------------------------------- Total Investments (cost $4,164,556,145) (b) $4,164,556,145 - -------------------------------------------------------------------------------------------------------------------------- (a) Percentages indicated are based on net assets of $4,250,800,934 (b) The aggregate identified cost on a tax basis is the same. The accompanying notes are an integral part of these financial statements.
Statement of assets and liabilities March 31, 1999 (Unaudited) Assets - ----------------------------------------------------------------------------------------------- Investments in securities, at amortized cost (Note 1) $4,164,556,145 - ----------------------------------------------------------------------------------------------- Cash 4,333 - ----------------------------------------------------------------------------------------------- Interest and other receivables 9,261,422 - ----------------------------------------------------------------------------------------------- Receivable for shares of the fund sold 111,286,259 - ----------------------------------------------------------------------------------------------- Total assets 4,285,108,159 Liabilities - ----------------------------------------------------------------------------------------------- Distributions payable to shareholders 658,642 - ----------------------------------------------------------------------------------------------- Payable for shares of the fund repurchased 29,424,230 - ----------------------------------------------------------------------------------------------- Payable for compensation of Manager (Note 2) 3,059,807 - ----------------------------------------------------------------------------------------------- Payable for investor servicing and custodian fees (Note 2) 415,199 - ----------------------------------------------------------------------------------------------- Payable for compensation of Trustees (Note 2) 28,031 - ----------------------------------------------------------------------------------------------- Payable for administrative services (Note 2) 7,482 - ----------------------------------------------------------------------------------------------- Payable for distribution fees (Note 2) 389,430 - ----------------------------------------------------------------------------------------------- Other accrued expenses 324,404 - ----------------------------------------------------------------------------------------------- Total liabilities 34,307,225 - ----------------------------------------------------------------------------------------------- Net assets $4,250,800,934 Represented by - ----------------------------------------------------------------------------------------------- Paid-in capital (Note 4) $4,250,800,934 - ----------------------------------------------------------------------------------------------- Net asset value, offering and redemption price per class A share ($3,292,062,798 divided by 3,292,062,798 shares)* $1.00 - ----------------------------------------------------------------------------------------------- Net asset value and offering price per class B share ($847,125,248 divided by 847,125,248 shares)** $1.00 - ----------------------------------------------------------------------------------------------- Net asset value and offering price per class C share ($1,262,994 divided by 1,262,994 shares)** $1.00 - ----------------------------------------------------------------------------------------------- Net asset value, offering and redemption price per class M share ($110,349,894 divided by 110,349,894 shares)* $1.00 - ----------------------------------------------------------------------------------------------- * Offered at net asset value. ** Class B and class C shares are available only by exchange of class B and class C shares from other Putnam funds and to certain systematic investment plan investors. For investors who acquired class B and class C shares through an exchange, the applicable contingent deferred sales charge will depend upon the fund which you exchanged. The accompanying notes are an integral part of these financial statements.
Statement of operations Six months ended March 31, 1999 (Unaudited) Interest income $99,626,343 - ----------------------------------------------------------------------------------------------- Expenses: - ----------------------------------------------------------------------------------------------- Compensation of Manager (Note 2) 5,909,290 - ----------------------------------------------------------------------------------------------- Investor servicing and custodian fees (Note 2) 2,430,319 - ----------------------------------------------------------------------------------------------- Compensation of Trustees (Note 2) 20,895 - ----------------------------------------------------------------------------------------------- Administrative services (Note 2) 15,242 - ----------------------------------------------------------------------------------------------- Distribution fees -- Class B (Note 2) 1,917,203 - ----------------------------------------------------------------------------------------------- Distribution fees -- Class C (Note 2) 363 - ----------------------------------------------------------------------------------------------- Distribution fees -- Class M (Note 2) 70,190 - ----------------------------------------------------------------------------------------------- Reports to shareholders 59,662 - ----------------------------------------------------------------------------------------------- Registration fees 460,780 - ----------------------------------------------------------------------------------------------- Auditing 8,409 - ----------------------------------------------------------------------------------------------- Legal 12,959 - ----------------------------------------------------------------------------------------------- Postage 239,123 - ----------------------------------------------------------------------------------------------- Other 34,492 - ----------------------------------------------------------------------------------------------- Total expenses 11,178,927 - ----------------------------------------------------------------------------------------------- Expense reduction (Note 2) (378,705) - ----------------------------------------------------------------------------------------------- Net expenses 10,800,222 - ----------------------------------------------------------------------------------------------- Net investment income 88,826,121 - ----------------------------------------------------------------------------------------------- Net increase in net assets resulting from operations $88,826,121 - ----------------------------------------------------------------------------------------------- The accompanying notes are an integral part of these financial statements.
Statement of changes in net assets Six months ended Year ended March 31 September 30 1999* 1998 - --------------------------------------------------------------------------------------------------------------- Increase in net assets - --------------------------------------------------------------------------------------------------------------- Operations: - --------------------------------------------------------------------------------------------------------------- Net investment income $ 88,826,121 $ 139,881,316 - --------------------------------------------------------------------------------------------------------------- Net increase in net assets resulting from operations 88,826,121 139,881,316 - --------------------------------------------------------------------------------------------------------------- Distributions to shareholders: - --------------------------------------------------------------------------------------------------------------- From net investment income Class A (69,743,911) (113,849,258) - --------------------------------------------------------------------------------------------------------------- Class B (16,894,972) (22,607,932) - --------------------------------------------------------------------------------------------------------------- Class C (1,864) -- - --------------------------------------------------------------------------------------------------------------- Class M (2,185,374) (3,424,126) - --------------------------------------------------------------------------------------------------------------- Increase from capital share transactions (Note 4) 797,328,488 849,862,355 - --------------------------------------------------------------------------------------------------------------- Total increase in net assets 797,328,488 849,862,355 Net assets - --------------------------------------------------------------------------------------------------------------- Beginning of period 3,453,472,446 2,603,610,091 - --------------------------------------------------------------------------------------------------------------- End of period $4,250,800,934 $3,453,472,446 - --------------------------------------------------------------------------------------------------------------- * Unaudited The accompanying notes are an integral part of these financial statements.
Financial highlights (For a share outstanding throughout the period) CLASS A - ----------------------------------------------------------------------------------------------------------------------------------- Six months ended For the eleven Per-share March 31 months ended operating performance (Unaudited) Year ended September 30 Sept. 30++ - ----------------------------------------------------------------------------------------------------------------------------------- 1999 1998 1997 1996 1995 1994 - ----------------------------------------------------------------------------------------------------------------------------------- Net investment income $.0245 $.0517 $.0505 $.0507 $.0521 $.0299 - ----------------------------------------------------------------------------------------------------------------------------------- Total from investment operations .0245 .0517 .0505 .0507 .0521 .0299 - ----------------------------------------------------------------------------------------------------------------------------------- Total distributions $(.0245) $(.0517) $(.0505) $(.0507) $(.0521) $(.0299) - ----------------------------------------------------------------------------------------------------------------------------------- Ratios and supplemental data - ----------------------------------------------------------------------------------------------------------------------------------- Total return at net asset value (%)(a) 2.47* 5.29 5.17 5.19 5.33 3.03* - ----------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $3,292,063 $2,598,891 $2,134,223 $1,659,288 $1,189,640 $1,101,171 - ----------------------------------------------------------------------------------------------------------------------------------- Ratio of expenses to average net assets (%)(b) .24* .58 .57 .57 .62 .58* - ----------------------------------------------------------------------------------------------------------------------------------- Ratio of net investment income to average net assets (%) 2.42* 5.20 5.06 5.00 5.23 3.03* - ----------------------------------------------------------------------------------------------------------------------------------- + Commencement of operations. ++ The fiscal year end has advanced from October 31 to September 30. * Not annualized. (a) Total return assumes dividend reinvestment and does not reflect the effect of sales charges. (b) The ratio of expenses to average net assets for the period ended September 30, 1995 and thereafter, includes amounts paid through expense offset arrangements. Prior period ratios exclude these amounts (Note 2).
Financial highlights (For a share outstanding throughout the period) CLASS B - ----------------------------------------------------------------------------------------------------------------------------------- Six months ended For the eleven Per-share March 31 months ended operating performance (Unaudited) Year ended September 30 Sept. 30++ - ----------------------------------------------------------------------------------------------------------------------------------- 1999 1998 1997 1996 1995 1994 - ----------------------------------------------------------------------------------------------------------------------------------- Net investment income $0.0222 $.0468 $.0455 $.0457 $.0469 $.0251 - ----------------------------------------------------------------------------------------------------------------------------------- Total from investment operations .0222 .0468 .0455 .0457 .0469 .0251 - ----------------------------------------------------------------------------------------------------------------------------------- Total distributions $(.0222) $(.0468) $(.0455) $(.0457) $(.0469) $(.0251) - ----------------------------------------------------------------------------------------------------------------------------------- Ratios and supplemental data - ----------------------------------------------------------------------------------------------------------------------------------- Total return at net asset value (%)(a) 2.24* 4.78 4.65 4.67 4.80 2.54* - ----------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $847,125 $759,748 $410,885 $438,316 $256,533 $194,187 - ----------------------------------------------------------------------------------------------------------------------------------- Ratio of expenses to average net assets (%)(b) .49* 1.08 1.07 1.07 1.12 1.03* - ----------------------------------------------------------------------------------------------------------------------------------- Ratio of net investment income to average net assets (%) 2.17* 4.69 4.57 4.51 4.75 2.77* - ----------------------------------------------------------------------------------------------------------------------------------- + Commencement of operations. ++ The fiscal year end has advanced from October 31 to September 30. * Not annualized. (a) Total return assumes dividend reinvestment and does not reflect the effect of sales charges. (b) The ratio of expenses to average net assets for the period ended September 30, 1995 and thereafter, includes amounts paid through expense offset arrangements. Prior period ratios exclude these amounts (Note 2).
Financial highlights (For a share outstanding throughout the period) CLASS C - ----------------------------------------------------------------------------------------------------------------------------------- For the period Per-share February 1, 1999 operating performance to March 31+ - ----------------------------------------------------------------------------------------------------------------------------------- 1999 - ----------------------------------------------------------------------------------------------------------------------------------- Net investment income $.0075 - ----------------------------------------------------------------------------------------------------------------------------------- Total from investment operations .0075 - ----------------------------------------------------------------------------------------------------------------------------------- Total distributions $(.0075) - ----------------------------------------------------------------------------------------------------------------------------------- Ratios and supplemental data - ----------------------------------------------------------------------------------------------------------------------------------- Total return at net asset value (%)(a) .75* - ----------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $1,263 - ----------------------------------------------------------------------------------------------------------------------------------- Ratio of expenses to average net assets (%)(b) .16* - ----------------------------------------------------------------------------------------------------------------------------------- Ratio of net investment income to average net assets (%) .77* - ----------------------------------------------------------------------------------------------------------------------------------- + Commencement of operations. ++ The fiscal year end has advanced from October 31 to September 30. * Not annualized. (a) Total return assumes dividend reinvestment and does not reflect the effect of sales charges. (b) The ratio of expenses to average net assets for the period ended September 30, 1995 and thereafter, includes amounts paid through expense offset arrangements. Prior period ratios exclude these amounts (Note 2).
Financial highlights (For a share outstanding throughout the period) CLASS M - ----------------------------------------------------------------------------------------------------------------------------------- Six months ended For the period Per-share March 31 Dec. 8, 1994+ operating performance (Unaudited) Year ended September 30 to Sept. 30 - ----------------------------------------------------------------------------------------------------------------------------------- 1999 1998 1997 1996 1995 - ----------------------------------------------------------------------------------------------------------------------------------- Net investment income $.0239 $.0502 $.0490 $.0490 $.0434 - ----------------------------------------------------------------------------------------------------------------------------------- Total from investment operations .0239 .0502 .0490 .0490 .0434 - ----------------------------------------------------------------------------------------------------------------------------------- Total distributions $(.0239) $(.0502) $(.0490) $(.0490) $(.0434) - ----------------------------------------------------------------------------------------------------------------------------------- Ratios and supplemental data - ----------------------------------------------------------------------------------------------------------------------------------- Total return at net asset value (%)(a) 2.41* 5.14 5.01 5.02 4.43* - ----------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $110,350 $94,833 $58,502 $29,075 $8,440 - ----------------------------------------------------------------------------------------------------------------------------------- Ratio of expenses to average net assets (%)(b) .32* .73 .72 .72 .67* - ----------------------------------------------------------------------------------------------------------------------------------- Ratio of net investment income to average net assets (%) 2.34* 5.04 4.92 4.82 4.29* - ----------------------------------------------------------------------------------------------------------------------------------- + Commencement of operations. ++ The fiscal year end has advanced from October 31 to September 30. * Not annualized. (a) Total return assumes dividend reinvestment and does not reflect the effect of sales charges. (b) The ratio of expenses to average net assets for the period ended September 30, 1995 and thereafter, includes amounts paid through expense offset arrangements. Prior period ratios exclude these amounts (Note 2).
Notes to financial statements March 31, 1999 (Unaudited) Note 1 Significant accounting policies Putnam Money Market Fund (the "fund"), is registered under the Investment Company Act of 1940, as amended as a diversified, open-end management investment company. The fund seeks as high a rate of current income as Putnam Investment Management, Inc. ("Putnam Management") believes is consistent with preservation of capital and maintenance of liquidity. The fund achieves its objective by primarily investing in a portfolio of high-grade short-term obligations. The fund may invest up to 100% of its assets in the banking industry and in commercial paper and short-term corporate obligations of issuers in the personal credit institution and business credit industries. The fund offers class A, class B, class C, and class M shares. The fund began offering class C shares on February 1, 1999. Each class of shares is sold without a front-end sales charge. Class B and class C shares are offered only in exchange for class B and class C shares of other Putnam funds, or purchased by certain systemic investments plans. Shareholders who acquired class B and class C shares through an exchange are subject to the same contingent deferred sales charge schedule as the fund from which they were exchanged. Class B shares, which convert to class A shares after approximately eight years, pay an ongoing distribution fee, and are subject to a contingent deferred sales charge, if those shares are redeemed within six years of purchase (including any holding period of the shares in other Putnam funds). Class C shares are subject to the same fees and expenses as class B shares, except that class C shares have a one-year 1.00% contingent deferred sales charge and do not convert to class A shares. Class M shares pay an ongoing distribution fee lower than class B and class C shares but are not subject to a contingent deferred sales charge. 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 that 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 The valuation of the fund's portfolio instruments is determined by means of the amortized cost method as set forth in Rule 2a-7 under the Investment Company Act of 1940. The amortized cost of an instrument is determined by valuing it at cost originally and thereafter amortizing any discount or premium from its face value at a constant rate until maturity. 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 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) Security transactions and related investment income Security transactions are accounted for on the trade date (date the order to buy or sell is executed). D) 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, as amended. Therefore, no provision has been made for federal taxes on income, capital gains or unrealized appreciation on securities held nor for excise tax on income and capital gains. E) Interest income and distributions to shareholders Interest is recorded on the accrual basis. Income dividends (and distributions of realized gains, if any) are recorded daily by the fund and are distributed monthly to the shareholders. F) Amortization of bond premium and accretion of bond discount Premiums and discounts from purchases of short-term investments are amortized/accreted using the straight-line method. 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: 0.50% of the first $100 million of average net assets, 0.40% of the next $100 million, 0.35% of the next $300 million, 0.325% of the next $500 million, and 0.30% thereafter. The fund reimburses Putnam Management an allocated amount for the compensation and related expenses of certain officers of the fund and their staff who provide administrative services to the fund. The aggregate amount of all such reimbursements is determined annually by the Trustees. Custodial functions for the fund's assets are provided by Putnam Fiduciary Trust Company (PFTC), a subsidiary of Putnam Investments, Inc. Investor servicing agent functions are provided by Putnam Investor Services, a division of PFTC. For the six months ended March 31, 1999, fund expenses were reduced by $378,705 under expense offset arrangements with PFTC. Investor servicing and custodian fees reported in the Statement of operations exclude these credits. The fund could have invested a portion of the assets utilized in connection with the expense offset arrangements in an income producing asset if it had not entered into such arrangements. Each Trustee of the fund receives an annual Trustee fee, of which $2,000 has been allocated to the fund, 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 "Deferral Plan") which allows the Trustees to defer the receipt of all or a portion of Trustees Fees payable on or after July 1, 1995. The deferred fees remain in the fund and are invested in certain Putnam funds until distribution in accordance with the Deferral Plan. The fund has adopted an unfunded noncontributory defined benefit pension plan (the "Pension Plan") covering all Trustees of the fund who have served as 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 B, class C 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 0.75%, 0.75%, and 1.00% of the average net assets attributable to class B, class C and class M shares, respectively. The Trustees have approved payment by the fund at an annual rate of 0.50%, 0.50% and 0.15% of the average net assets attributable to class A, class B, class C and class M shares respectively. For the six months ended March 31, 1999, Putnam Mutual Funds Corp., acting as underwriter received $2,940,600 and $0 in contingent deferred sales charges from redemptions of class B and class C shares, respectively. A deferred sales charge of up to 1% is assessed on certain redemptions of class A shares. For the six months ended March 31, 1999, Putnam Mutual Funds Corp., acting as the underwriter received no monies in contingent deferred sales charges from redemptions of class A shares acquired through an exchange from another fund. For the six months ended March 31, 1999, Putnam Mutual Funds Corp., acting as underwriter received no monies on class A redemptions. Note 3 Purchases and sales of securities During the six months ended March 31, 1999, purchases and sales (including maturities) of investment securities (all short-term obligations) aggregated $33,882,030,373 and $33,267,809,000, respectively. 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, 1999, there was an unlimited number of shares of beneficial interest authorized. Transactions in capital shares at a constant net asset value of $1.00 per share were as follows: Six months ended Year ended March 31 September 30 Class A 1999 1998 - ----------------------------------------------------------------------------- Shares sold 4,412,143,243 6,667,169,273 - ----------------------------------------------------------------------------- Shares issued in connection with reinvestment of distributions 68,038,226 108,688,157 - ----------------------------------------------------------------------------- 4,480,181,469 6,775,857,430 Shares repurchased (3,787,009,829) (6,311,189,399) - ----------------------------------------------------------------------------- Net increase 693,171,640 464,668,031 - ----------------------------------------------------------------------------- Six months ended Year ended March 31 September 30 Class B 1999 1998 - ----------------------------------------------------------------------------- Shares sold 1,344,152,854 2,232,701,520 - ----------------------------------------------------------------------------- Shares issued in connection with reinvestment of distributions 15,705,680 20,739,502 - ----------------------------------------------------------------------------- 1,359,858,534 2,253,441,022 Shares repurchased (1,272,481,781) (1,904,577,891) - ----------------------------------------------------------------------------- Net increase 87,376,753 348,863,131 - ----------------------------------------------------------------------------- For the period February 1, 1999 (commencement of operations) to March 31 Class C 1999 - ----------------------------------------------------------------------------- Shares sold 1,576,349 - ----------------------------------------------------------------------------- Shares issued in connection with reinvestment of distributions 1,864 - ----------------------------------------------------------------------------- 1,578,213 Shares repurchased (315,219) - ----------------------------------------------------------------------------- Net increase 1,262,994 - ----------------------------------------------------------------------------- Six months ended Year ended March 31 September 30 Class M 1999 1998 - ----------------------------------------------------------------------------- Shares sold 317,836,722 361,506,694 - ----------------------------------------------------------------------------- Shares issued in connection with reinvestment of distributions 2,157,295 3,282,134 - ----------------------------------------------------------------------------- 319,994,017 364,788,828 Shares repurchased (304,476,916) (328,457,635) - ----------------------------------------------------------------------------- Net increase 15,517,101 36,331,193 - ----------------------------------------------------------------------------- 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 John A. Hill, Vice Chairman Jameson Adkins Baxter Hans H. Estin Ronald J. Jackson Paul L. Joskow Elizabeth T. Kennan Lawrence J. Lasser John H. Mullin III Robert E. Patterson Donald S. Perkins George Putnam, III A.J.C. Smith W. Thomas Stephens 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 Stephen Oristaglio Vice President Edward H. D'Alelio Vice President Joanne Driscoll Vice President and Fund Manager Richard A. Monaghan Vice President John R. Verani Vice President Beverly Marcus Clerk and Assistant Treasurer This report is for the information of shareholders of Putnam Money Market 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' Web site: 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 the principal amount invested. [LOGO OMITTED] PUTNAM INVESTMENTS The Putnam Funds One Post Office Square Boston, Massachusetts 02109 www.putnaminv.com - --------------------- BULK RATE U.S. POSTAGE PAID PUTNAM INVESTMENTS - --------------------- SA039 51856 010/879/543 5/99 -----END PRIVACY-ENHANCED MESSAGE-----