-----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, O9t359Zj9WL4UJQEOJfj5sQ57KXy6XnEht3ovYW5s0tEO9wGCGSZBJFaj0+OXMIy 6wkuIAd9Q22fi3XlDBwTCQ== 0000928816-97-000215.txt : 19970708 0000928816-97-000215.hdr.sgml : 19970708 ACCESSION NUMBER: 0000928816-97-000215 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970430 FILED AS OF DATE: 19970707 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PUTNAM GLOBAL GROWTH FUND CENTRAL INDEX KEY: 0000081251 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 046145734 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-01403 FILM NUMBER: 97636682 BUSINESS ADDRESS: STREET 1: ONE POST OFFICE SQ STREET 2: MAILSTOP A14 CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 8002251581 MAIL ADDRESS: ZIP: ----- FORMER COMPANY: FORMER CONFORMED NAME: PUTNAM INTERNATIONAL EQUITIES FUND DATE OF NAME CHANGE: 19900722 FORMER COMPANY: FORMER CONFORMED NAME: PUTNAM INTERNATIONAL EQUITIES FUND INC /PRED/ DATE OF NAME CHANGE: 19821109 FORMER COMPANY: FORMER CONFORMED NAME: PUTNAM EQUITIES FUND INC DATE OF NAME CHANGE: 19790906 N-30D 1 PUTNAM GLOBAL GROWTH FUND Putnam Global Growth Fund SEMIANNUAL REPORT April 30, 1997 [LOGO: BOSTON * LONDON * TOKYO] Fund highlights * "On the whole, Putnam Global Growth Fund is a good choice for those seeking a world stock fund with limited volatility." -- Morningstar Mutual Funds, February 14, 1997 * "We evaluate both countries and individual stocks when shaping your fund's portfolio. In each case, we are supported by Putnam's extensive resources, receiving input from the Global Asset Allocation group in setting country weightings, and from global industry in choosing stocks." -- Robert J. Swift, manager Putnam Global Growth Fund CONTENTS 4 Report from Putnam Management 9 Fund performance summary 13 Portfolio holdings 23 Financial statements From the Chairman [GRAPHIC OMITTED: PHOTO OF GEORGE PUTNAM] [copyright] Karsh, Ottawa Dear Shareholder: Diversification beyond national boundaries is a matter of growing importance to U.S. investors as their awareness of the interdependent nature of the global economy heightens. Managing a globally diversified portfolio consequently has become an increasingly complex challenge. I am pleased to announce the addition of two new members to your fund's management team, Thomas Haslett and Kelly A. Morgan. As chief investment officer for emerging markets equities, Tom brings to your fund an important area of expertise. Before joining Putnam in 1996, he was with Montgomery Asset Management, Ltd., Gannett, Welsh & Kotler, Inc., and Miller, Tabak, Hirsch and Co. Tom has 15 years of investment experience. Kelly joined Putnam in 1996 after a decade with Alliance Capital Management, where she was a global equity portfolio manager. She has 13 years of investment management experience. In the following report, your fund's management team discusses performance so far in fiscal 1997 and looks at prospects for the remainder of the year. Respectfully yours, /S/GEORGE PUTNAM George Putnam Chairman of the Trustees June 18, 1997 Report from the Fund Managers Robert J. Swift, lead manager Anthony W. Regan Ami Kuan Danoff Kelly A. Morgan Carol McMullen C. Kim Goodwin Aided mostly by sound stock picking in the positive markets of Western Europe, Putnam Global Growth Fund experienced a solid semiannual period. For the six months ended April 30, 1997, performance of your fund's class A shares -- a gain of 8.93% at net asset value -- nicely outpaced the Morgan Stanley Capital International World Index, which rose 7.56% over the same period. At maximum public offering price, class A shares returned 2.64%. For performance over longer periods and for other share classes, please turn to page 9 of this report. While remaining risk- conscious, we continued to focus on companies with demonstrated revenues and earnings growth -- and strong prospects for continued expansion. * WESTERN EUROPEAN MARKETS SHOW STRONGEST PERFORMANCE Political uncertainty and unemployment beset key markets in Western Europe over the past year, making it an unlikely region for equity strength. Nevertheless, many stock markets across the Continent moved steadily upward over the past six months. We believe this positive performance was driven by the hope for better shareholder returns following corporate restructurings, begun in the early 1990s, which have increased the efficiency and profitability of many European companies. We are upbeat about prospects for a number of German corporations in the coming months. Among them is Bayer, a fund holding. This globally competitive pharmaceutical and chemical firm is now actively managed on behalf of shareholders. Indeed, Bayer has long offered an excellent array of products, but is more profitable today than in the past because of a renewed emphasis on return on capital. Another German holding, Fresenius Medical Care, is a smaller firm with excellent growth potential. Fresenius develops and sells kidney-treatment devices and has substantially increased its market share. While these stocks, along with others discussed in this report, were viewed favorably at the end of the fiscal period, all portfolio holdings are subject to review and adjustment in accordance with the fund's investment strategy and may vary in the future. In France, we continue to be optimistic about prospects for SGS-Thomson Microelectronics, a leading semiconductor company. With its ability to offer businesses custom-manufactured components, SGS-Thomson managed to prosper despite the 1996 downturn in global demand for memory chips. Elsewhere in Western Europe, your fund owns shares of ABN-AMRO, an efficient, profitable Netherlands bank with sound plans for expansion in North America and Asia. Your fund's portfolio includes such world-class Swiss companies as Nestle, Roche, and the pharmaceutical firm Novartis (formed by the merger of giants Sandoz and Ciba-Geigy). The fund's holdings also include shares of the United Kingdom's SmithKline Beecham, another global pharmaceuticals firm. * ASIAN MARKETS APPEAR POISED FOR GROWTH Japan's stock market difficulties continued throughout the period. However, your fund owned shares of selected Japanese companies with strong overseas operations, many of which performed well despite the falling Nikkei Index. Among your fund's Japanese holdings is Advantest Corp., a maker of semiconductor testing equipment. Another Japanese fund holding, Sankyo, manufactures pharmaceuticals, selling therapeutic treatments through subsidiaries in the United States, India, Taiwan, and Thailand. The electronics firm NEC Corp. also withstood Japan's domestic difficulties, turning in strong stock performance over the past six months. [GRAPHIC OMITTED: horizontal bar chart COUNTRY ALLOCATION] COUNTRY ALLOCATION* United States 24.9% Japan 17.1% United Kingdom 8.9% The Netherlands 5.9% Switzerland 5.6% France 5.5% Germany 3.9% Australia 2.8% Hong Kong 2.8% Sweden 2.2% Italy 2.1% Footnote reads: * Based on net assets as of 4/30/97. Holdings will vary over time. Hong Kong had a generally buoyant market throughout the period, as investors concluded that the fast-approaching turnover of power to China would be relatively smooth. Hong Kong companies positioned to benefit from closer ties with the mainland were particularly robust, among them Guoco Group. A conglomerate with banking, manufacturing, and property interests, Guoco has been making strategic property acquisitions in Singapore, Malaysia, and the Philippines. HSBC Holdings is the largest banking company in Hong Kong, with operations in the United Kingdom, China, and the United States. HSBC -- the world's leading bank in terms of net profits -- has long offered an excellent way to benefit from the Asia Pacific region's vast demand for financial services. Elsewhere in Asia, your fund owns stocks in Malaysia, the Philippines, Singapore, South Korea, and Taiwan. While these holdings represent a fairly small percentage of the portfolio, we believe they offer exceptional growth opportunities. Indeed, emerging markets in Asia -- and elsewhere -- play a small but helpful role in your fund's performance, adding a robust growth element at the margins. * U.S. MARKET ENDURES A PERIOD OF VOLATILITY Substantial volatility, long absent from U.S. markets, returned during your fund's semiannual period. While stocks of large companies were spared much of this difficulty, most others fell dramatically from investor favor. The small and midsize growth stocks on which your fund has recently focused experienced especially poor performance over the period. Nevertheless, as is Putnam's policy, we stayed with our stated growth objective, not shifting to meet temporary changes in the market. Such a focus on occasion can dampen performance, but we believe it positions the fund most effectively for stronger results over the long term. TOP 10 HOLDINGS SmithKline Beecham (United Kingdom) Pharmaceuticals SGS-Thomson Microelectronics (France) Semiconductors Vodafone Group (United Kingdom) Telecommunications Advantest Corp. (Japan) Semiconductors Tokyo Electron Ltd. (Japan) Semiconductors Bayer AG (Germany) Pharmaceuticals Total (France) Oil and gas Roche Holdings (Switzerland) Pharmaceuticals Sankyo Co. Ltd. (Japan) Pharmaceuticals Swiss Reinsurance Co. (Switzerland) Insurance Footnote reads: These holdings represent 12.6% of the fund's net assets as of 4/30/97. Portfolio holdings will vary over time. During the period, your fund's extensive technology holdings -- most notably networking and software stocks -- were also caught in the market downdraft. As of this report, many of these stocks had already begun to recover, and we are particularly optimistic about continued prospects for Cisco Systems, a world leader in networking software. Adaptec is another company we consider fundamentally strong, although its performance has been hampered by current market sentiment. It manufactures and sells hardware and software that facilitates the fast transfer of information between computers. Also among the fund's U.S.-based holdings is Cardinal Health, a wholesale distributor of pharmaceutical and other supplies. We also believe that fund holding Paychex Inc., a payroll processing firm that serves small and midsize companies, has superb long-term growth potential. * NEAR-TERM OUTLOOK RELATIVELY OPTIMISTIC We are optimistic about prospects for your fund in the coming months. Inflation remains temperate in most markets, providing an encouraging environment for equities. Overall economic growth is expected to be strong throughout the rest of 1997 and into 1998, which should help to fuel business revenues and profits. Of course, individual stock selection is a vital aspect of your fund's strategy, and we are confident that our rigorous research process will enable us to continue identifying attractive growth stocks -- both in the United States and abroad. 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 4/30/97, there is no guarantee the fund will continue to hold these securities in the future. International investing involves certain risks, including currency fluctuations, political developments, and economic instability. Performance summary This section provides information about your fund's performance, which should always be considered in light of its investment strategy. Putnam Global Growth Fund is designed for investors seeking capital appreciation through a globally diversified equity portfolio. TOTAL RETURN FOR PERIODS ENDED 4/30/97 Class A Class B Class M (inception date) (9/1/67) (4/27/92) (3/1/95) NAV POP NAV CDSC NAV POP - ------------------------------------------------------------------------- 6 months 8.93% 2.64% 8.58% 3.58% 8.62% 4.83% - ------------------------------------------------------------------------- 1 year 12.27 5.79 11.47 6.47 11.65 7.74 - ------------------------------------------------------------------------- 5 years 80.38 70.04 -- -- -- -- Annual average 12.52 11.20 -- -- -- -- - ------------------------------------------------------------------------- 10 years 143.99 129.94 -- -- -- -- Annual average 9.33 8.68 -- -- -- -- - ------------------------------------------------------------------------- Life of fund -- -- 75.02 74.02 42.93 37.95 Annual average -- -- 11.82 11.69 17.89 15.98 - ------------------------------------------------------------------------- COMPARATIVE INDEX RETURNS FOR PERIODS ENDED 4/30/97 MSCI EAF MSCI S&P 500 Consumer Index World Index Index Price Index - ------------------------------------------------------------------------- 6 months 1.57% 7.56% 14.71% 1.20% - ------------------------------------------------------------------------- 1 year -0.89 10.34 25.12 2.50 - ------------------------------------------------------------------------- 5 years 65.38 85.92 119.75 14.84 Annual average 10.59 13.21 17.06 2.81 - ------------------------------------------------------------------------- 10 years 62.94 118.79 274.55 42.15 Annual average 5.00 8.14 14.12 3.58 - ------------------------------------------------------------------------- Life of class B 65.38 85.92 119.75 14.84 Annual average 10.59 13.21 17.06 2.80 - ------------------------------------------------------------------------- Life of class M 21.71 42.01 72.62 6.16 Annual average 9.49 17.56 28.63 2.79 - ------------------------------------------------------------------------- Performance data represent past results, do not reflect future performance, and will differ for each share class. They do not take into account any adjustment for taxes payable on reinvested distributions or, for class A shares, distribution fees prior to implementation of the class A distribution plan in 1990. Investment returns and principal value will fluctuate so that an investor's shares, when sold, may be worth more or less than their original cost. POP assumes 5.75% maximum sales charge for class A shares and 3.50% for class M shares. CDSC for class B shares assumes the applicable sales charge, with the maximum being 5%. PRICE AND DISTRIBUTION INFORMATION 6 months ended 4/30/97 Class A Class B Class M - ------------------------------------------------------------------------------ Distributions (number) 1 1 1 - ------------------------------------------------------------------------------ Income $0.275 $0.203 $0.249 - ------------------------------------------------------------------------------ Capital gains - ------------------------------------------------------------------------------ Long-term 0.296 0.296 0.296 - ------------------------------------------------------------------------------ Short-term 0.249 0.249 0.249 - ------------------------------------------------------------------------------ Total $0.820 $0.748 $0.794 - ------------------------------------------------------------------------------ Share value: NAV POP NAV NAV POP - ------------------------------------------------------------------------------ 10/31/96 $11.10 $11.78 $10.78 $11.05 $11.45 - ------------------------------------------------------------------------------ 4/30/97 11.23 11.92 10.92 11.17 11.58 - ------------------------------------------------------------------------------ TOTAL RETURN FOR PERIODS ENDED 3/31/97 (most recent calendar quarter) Class A Class B Class M NAV POP NAV CDSC NAV POP - ------------------------------------------------------------------------------ 6 months 6.02% -0.09% 5.50% 0.58% 5.61% 1.93% - ------------------------------------------------------------------------------ 1 year 11.33 4.89 10.40 5.40 10.71 6.87 - ------------------------------------------------------------------------------ 5 years 80.99 70.54 -- -- -- -- Annual average 12.60 11.27 -- -- -- -- - ------------------------------------------------------------------------------ 10 years 140.18 126.36 -- -- -- -- Annual average 9.16 8.51 -- -- -- -- - ------------------------------------------------------------------------------ Life of class -- -- 70.37 68.37 39.22 34.37 Annual average -- -- 11.41 11.15 17.15 15.18 - ------------------------------------------------------------------------------ Performance data represent past results, do not reflect future performance, and will differ for each share class. Investment returns and principal value will fluctuate so that an investor's shares, when sold, may be worth more or less than their original cost. TERMS AND DEFINITIONS Total return shows how the value of the fund's shares changed over time, assuming you held the shares through the entire period and reinvested all distributions in the fund. Class A shares are generally subject to an initial sales charge. Class B shares may be subject to a sales charge upon redemption. Class M shares have a lower initial sales and a higher 12b-1 fee than class A shares and no sales charge on redemption. Net asset value (NAV) is the value of all your fund's assets, minus any liabilities, divided by the number of outstanding shares, not including any initial or contingent deferred sales charge. Public offering price (POP) is the price of a mutual fund share plus the maximum sales charge levied at the time of purchase. POP performance figures shown here assume the maximum 5.75% sales charge for class A shares and 3.50% for class M shares. Contingent deferred sales charge (CDSC) is a charge applied at the time of the redemption of class B shares and assumes redemption at the end of the period. Your fund's CDSC declines from a 5% maximum during the first year to 1% during the sixth year. After the sixth year, the CDSC no longer applies. COMPARATIVE BENCHMARKS Standard & Poor's 500 Index* is an unmanaged list of common stocks that is frequently used as a general measure of stock market performance. Morgan Stanley Capital International (MSCI) EAFE Index* is an unmanaged list of equity securities from Europe, Australia and the Far East, with all values expressed in U.S. dollars. Morgan Stanley Capital International (MSCI) World Index* is an unmanaged list of global equity securities, with all values expressed in U.S. dollars. Consumer Price Index (CPI) is a commonly used measure of inflation; it does not represent an investment return. * Securities indexes assume reinvestment of all distributions and interest payments and do not take in account brokerage fees or taxes. Securities in the fund do not match those in the indexes and performance of the fund will differ. It is not possible to invest directly in an index. PUTNAM GROWTH FUNDS Asia Pacific Growth Fund Capital Appreciation Fund Diversified Equity Trust Europe Growth Fund Global Growth Fund Global Natural Resources Fund * Health Sciences Trust International Growth Fund + International New Opportunities Fund Investors Fund New Opportunities Fund OTC & Emerging Growth Fund [DBL. DAGGER] Vista Fund Voyager Fund Voyager Fund II PUTNAM GROWTH AND INCOME FUNDS Balanced Retirement Fund Convertible Income-Growth Trust Equity Income Fund The George Putnam Fund of Boston The Putnam Fund for Growth and Income Growth and Income Fund II International Growth and Income Fund New Value Fund Utilities Growth and Income Fund PUTNAM INCOME FUNDS American Government Income Fund Diversified Income Trust Diversified Income Trust II Federal Income Trust Global Governmental Income Trust High Yield Advantage Fund High Yield Trust Income Fund Intermediate U.S. Government Income Fund Preferred Income Fund U.S. Government Income Trust PUTNAM TAX-FREE INCOME FUNDS Municipal Income Fund Tax Exempt Income Fund Tax-Free High Yield Fund Tax-Free Insured Fund State tax-free income funds [SECTION MARK] Arizona, California, Florida, Massachusetts, Michigan, Minnesota, New Jersey, New York, Ohio and Pennsylvania LIFESTAGESM FUNDS Putnam Asset Allocation Funds--three investment portfolios that spread your money across a variety of stocks, bonds, and money market investments. The three portfolios: Asset Allocation: Balanced Portfolio Asset Allocation: Conservative Portfolio Asset Allocation: Growth Portfolio MOST CONSERVATIVE INVESTMENTS ** Putnam money market funds: ++ California Tax Exempt Money Market Fund Money Market Fund New York Tax Exempt Money Market Fund Tax Exempt Money Market Fund CDs and savings accounts [2 DBL. DAGGERS] * Formerly Natural Resources Fund + Formerly Overseas Growth Fund [DBL. DAGGER] Formerly OTC Emerging Growth Fund [SECTION MARK] Not available in all states. ** Relative to above. ++ An investment in a money market fund is neither insured nor guaranteed by the U.S. government. These funds are managed to maintain a price of $1.00 per share, although there is no assurance that this price will be maintained in the future. [2 DBL. DAGGERS] Not offered by Putnam Investments. Certificates of deposit offer a fixed rate of return and may be insured up to certain limits by federal/state agencies. Savings accounts may also be insured up to certain limits. Please call your financial advisor or Putnam at 1-800-225-1581 to obtain a prospectus for any Putnam fund. It contains more complete information, including charges and expenses. Please read it carefully before you invest or send money. Portfolio of investments owned April 30, 1997 (Unaudited)
COMMON STOCKS (94.8%) * NUMBER OF SHARES VALUE Argentina (0.3%) - ------------------------------------------------------------------------------------------------------------ 74,667 Banco De Galicia y Buenos Aires Class B ADR + 1,816,508 309,923 Banco Frances del Rio de la Plata S.A. ADR 3,124,336 37,700 Disco S.A. ADR + 1,168,700 48,000 Inversiones Y Represent ADR 1,680,000 93,500 Telefonica de Argentina S.A. ADR 3,108,875 87,700 YPF S.A. ADR 2,422,713 -------------- 13,321,132 Australia (2.8%) - ------------------------------------------------------------------------------------------------------------ 4,417,000 Australia & New Zealand Banking Group Ltd. 28,231,149 2,500,000 Biota Holdings Ltd. + 8,194,200 374,100 Coca-Cola Amatil Ltd. 4,279,661 2,352,625 QBE Insurance Group Ltd. 13,457,796 11,389,000 Sydney Harbor Casino + 19,198,027 2,310,000 Westpac Banking Corp. 12,456,823 3,799,000 Woodside Petroleum Ltd. 30,240,344 -------------- 116,058,000 Austria (0.1%) - ------------------------------------------------------------------------------------------------------------ 241,820 Mayr-Melnhof Karton AG 144A ADS + 2,811,158 Brazil (0.4%) - ------------------------------------------------------------------------------------------------------------ 123,200 Brazil Realty S.A. 3,295,600 55,700 Comp Energetica De Minas Gerais (Cemig) 144A ADS 2,520,425 7,800,000 Compania Paulista de Forca e Luz (CPFL) 1,210,529 67,600,000 Compania Siderurgica Nacional 2,415,239 5,800,000 Eletropaulo-Eletricidade de Sao Paulo S.A. Class B + 1,164,582 7,370,000 Light Participacoes, S.A. 2,349,694 109,300 Multicanal Participacoes S.A. ADR + 1,584,850 24,200 Telebras Co. ADR 2,776,950 -------------- 17,317,869 Canada (1.4%) - ------------------------------------------------------------------------------------------------------------ 93,100 Indochina Goldfields Ltd. + 856,237 225,000 Magna International, Inc. Class A 11,728,125 619,900 Northern Telecom Ltd. + 45,077,183 333,500 Super Sol Ltd. + 996,385 -------------- 58,657,930 Chile (0.1%) - ------------------------------------------------------------------------------------------------------------ 101,000 Compania De Tele Chile ADS 3,269,875 60,800 Santa Isabel S.A. ADR + 1,482,000 -------------- 4,751,875 Denmark (0.3%) - ------------------------------------------------------------------------------------------------------------ 221,200 Danisco A/S + 12,831,952 Finland (1.1%) - ------------------------------------------------------------------------------------------------------------ 691,000 Oy Nokia AB Class A 43,152,581 France (5.5%) - ------------------------------------------------------------------------------------------------------------ 101,000 Canal Plus ADR 18,265,957 31,300 Carrefour Supermarche SA 19,570,556 124,608 Cetelem Group 14,539,025 325,600 Credit Locale de France S.A. 30,168,840 71,289 Guilbert S.A. + 11,131,261 717,800 SGS-Thomson Microelectronics ADR + 56,257,575 18,730 Sommer Allibert 674,897 592,700 Total S.A. Class B + 49,222,169 417,360 Valeo S.A. 25,780,645 -------------- 225,610,925 Germany (3.9%) - ------------------------------------------------------------------------------------------------------------ 89,710 Adidas AG + 9,364,247 108,300 Adidas AG 144A + 11,210,791 1,240,500 Bayer AG ADR 49,427,742 281,500 Deutsche Telekom AG + 6,117,725 438,800 Deutsche Telekom AG ADR + 9,434,200 1,064,000 Dresdner Bank AG + 34,088,365 297,000 Fresenius Medical Care AG + 26,055,344 96,520 SGL Carbon AG 13,479,979 -------------- 159,178,393 Hong Kong (2.8%) - ------------------------------------------------------------------------------------------------------------ 20,000 Asia Satellite Telecommunications Holdings Ltd. ADR + 515,000 855,000 Cheung Kong Infrastructure Holdings 2,422,831 1,486,000 Dao Heng Bank Group Ltd. 7,059,747 4,912,200 Guoco Group Ltd. 23,337,072 1,463,554 HSBC Holdings PLC 37,032,867 9,210,000 National Mutual Asia Ltd. 9,512,005 1,192,400 New World Infrastructure Ltd. + 3,371,232 346,200 Swire Pacific Ltd. Class A 2,670,469 6,970,000 Television Broadcasts Ltd. 28,614,253 -------------- 114,535,476 India (0.3%) - ------------------------------------------------------------------------------------------------------------ 54,000 East India Hotel Ltd. 144A GDR 864,000 100,000 Gujarat Ambuja Cements Ltd. + 975,000 321,000 Mahanagar Telephone Nigam Ltd. 2,640,513 64,000 State Bank of India 144A GDR + 1,536,000 102,000 State Bank of India Ltd. + 909,796 55,680 Tata Engineering and Locomotive Co. Ltd. 144A GDR + 682,080 156,000 Tata Engineering and Locomotive Co. Ltd. + 1,761,996 49,300 Videsh Sanchar Nigam Ltd. 144A GDR + 955,188 -------------- 10,324,573 Indonesia (0.3%) - ------------------------------------------------------------------------------------------------------------ 4,282,000 PT Bank International Indonesia + 3,084,999 82,000 PT Pasifik Satelit Nusantara ADR + 820,000 1,070,000 PT Ramayana Lestari Sentosa + 2,598,999 883,000 PT Semen Gresik + 2,153,869 92,400 PT Telekomunikasi Indonesia ADR + 2,633,400 344,000 Sampoerna Industries + 1,384,349 -------------- 12,675,616 Ireland (1.4%) - ------------------------------------------------------------------------------------------------------------ 1,245,000 Bank of Ireland 12,957,493 1,376,567 CRH PLC 13,430,080 6,320,950 Greencore Group PLC 32,183,117 -------------- 58,570,690 Israel (0.1%) - ------------------------------------------------------------------------------------------------------------ 526,000 Bank Hapoalim Ltd. + 1,120,300 37,200 Tadiran Ltd. 981,582 -------------- 2,101,882 Italy (2.1%) - ------------------------------------------------------------------------------------------------------------ 5,262,800 Ente Nazionale Idrocarburi SPA + 26,745,086 433,900 Gucci Group + 30,101,813 8,883,000 Telecom Italia Mobile SPA + 27,973,882 -------------- 84,820,781 Japan (17.1%) - ------------------------------------------------------------------------------------------------------------ 940,500 Advantest Corp. 52,204,776 1,638,000 Canon, Inc. 38,818,854 1,314,000 Dai Nippon Printing Co., Ltd. 23,691,533 1,135,000 Denso Co., Ltd. 25,825,933 650,000 Fanuc 22,159,684 4,415,000 Fuji Heavy Industries 22,003,752 240,000 Hirose Electric Co. Ltd. 13,113,935 305,000 Hoya Corp. 13,976,072 183,700 Keyence Corp 22,418,325 715,000 Kurita Water Industries Ltd. 15,087,009 369,000 Murata Manufacturing Co. 13,596,732 3,824,000 NEC Corp. 46,667,216 2,378,000 Nikon Corp. 34,075,760 850,000 Omron Corp. 16,061,736 1,825,000 Ricoh Co., Ltd. 21,697,122 587,000 Rohm Co. Ltd. 45,477,388 1,757,000 Sankyo Co., Ltd. 47,034,117 40,900 Santen Pharmaceutical Co. Ltd 734,210 225,000 Secom Co. 13,374,938 465,000 Seven-Eleven Japan 29,472,105 1,767,000 Shin-Etsu Chemical Co. 35,615,482 449,800 Takefuji Corp. 144A 21,532,048 214,600 Takefuji Corp. 10,323,649 893,000 Taisho Pharmaceutical Co. 22,077,171 417,000 TDK Corp. 30,041,351 355,000 Tokyo Broadcasting System 5,534,213 1,296,900 Tokyo Electron Ltd. 50,033,961 439,000 Yamatake-Honeywell 6,532,639 -------------- 699,181,711 Malaysia (1.5%) - ------------------------------------------------------------------------------------------------------------ 585,000 Arab Malaysian Corp. Berhad + 2,424,581 891,000 DCB Holdings 2,893,895 722,000 Genting Berhad Co. + 3,855,577 1,072,000 IJM Corp. Berhad 2,349,659 1,995,000 IOI Corp. 2,480,533 239,000 Magnum Corp. Berhad 379,078 300,000 Malayan Banking Berhad 2,988,881 261,000 Malaysian Assurance Alliance + 1,404,176 1,000,000 Multi-Purpose Holdings Berhad + 1,633,922 4,390,000 Perusahaan Otomobil Nasional Berhad 26,242,380 326,000 Public Bank Berhad + 540,454 105,000 Tanjong PLC 380,783 517,000 Technology Resources Industries Berhad + 947,754 381,000 United Engineers Ltd. + 2,702,666 2,643,000 YTL Corp. Berhad 10,743,474 14,300 YTL Power International Berhad 21,086 -------------- 61,988,899 Mexico (1.0%) - ------------------------------------------------------------------------------------------------------------ 365,000 AXA S.A. + 22,489,962 300,000 Cemex, S.A. de C.V. + 995,722 544,000 Cemex, S.A. de C.V. Class B + 1,998,591 836,400 Fomento Economico Mexicano, S.A. de C.V. Class B + 3,925,229 126,100 Grupo Imsa S.A. ADR 2,711,150 648,000 Industrias Penoles S.A. + 3,032,914 148,800 Panamerican Beverages, Inc., Class A 4,315,200 -------------- 39,468,768 Netherlands (5.9%) - ------------------------------------------------------------------------------------------------------------ 374,862 ABN AMRO Holding N.V. + 25,797,411 351,000 ASM Lithography Holding N.V. + 26,247,880 733,000 Baan Co., N.V. + 38,463,946 1,028,104 Getronics Electric N.V. 31,175,483 600,000 IHC Caland N.V. + 29,665,416 804,696 Internationale Nederlanden Groep 31,638,610 143,780 Koninklijke Ahold N.V. 9,828,206 40,100 Nutricia Verenigde Bedrijven N.V. + 6,092,183 133,600 Unilever N.V. 26,016,878 378,800 Vendex International N.V. + 18,008,429 -------------- 242,934,442 New Zealand (0.1%) - ------------------------------------------------------------------------------------------------------------ 511,400 Telecom Corp. of New Zealand Ltd. 2,291,646 Pakistan (--%) - ------------------------------------------------------------------------------------------------------------ 30 Pakistan State Oil 226 Philippines (0.3%) - ------------------------------------------------------------------------------------------------------------ 8,157,000 Belle Corp. + 1,950,250 6,451,400 Fil-Estate Land, Inc. 1,836,262 3,253,000 International Container Terminal Services, Inc. 1,913,529 375,000 Manila Electric Co. Class B 2,333,966 7,475,000 Petron Corp. 2,751,707 94,300 Philippine Commercial International 1,163,093 38,600 Philippine Long Distance Telephone Co. ADR 2,151,950 -------------- 14,100,757 Portugal (1.2%) - ------------------------------------------------------------------------------------------------------------ 110,900 Colep-Companhia Portuguesa de Embalagens + 1,520,404 105,000 Investec Consultadoria International + 3,471,170 1,121,800 Portugal Telecom S.A. 41,389,002 30,600 Telecel-Comunicacaoes Pessoais, S.A. + 2,631,600 -------------- 49,012,176 Russia (0.3%) - ------------------------------------------------------------------------------------------------------------ 58,100 AO Mosenergo 144A ADS 2,265,900 50,400 Lukoil Oil Co. ADR 2,835,000 620,000 Rostelecom + 2,331,200 60,300 Tatneft 144A ADR + 4,522,500 -------------- 11,954,600 Singapore (1.0%) - ------------------------------------------------------------------------------------------------------------ 1,106,000 Malayan Banking Berhad + 11,019,009 3,032,000 Overseas Union Bank Ltd. 19,910,140 1,120,000 United Overseas Bank Ltd. + 10,528,790 -------------- 41,457,939 South Africa (0.2%) - ------------------------------------------------------------------------------------------------------------ 76,100 Energy Africa Ltd. 144A + 1,598,100 558,000 Gencor Ltd. 2,346,700 2,209,891 SA Iron & Steel Industrial Corp. 1,530,747 214,000 Sasol Ltd. 2,743,281 -------------- 8,218,828 South Korea (0.2%) - ------------------------------------------------------------------------------------------------------------ 40,920 Hyundai Electronics Industries Co. + 1,636,807 136,200 Kookmin Bank GDR 2,383,500 60,000 Korea Electric Power Corp. 1,793,266 2,648 SK Telecom Co. Ltd. 2,035,100 78,400 SK Telecom Co. Ltd. ADR 744,800 -------------- 8,593,473 Spain (1.2%) - ------------------------------------------------------------------------------------------------------------ 531,231 Banco de Bilbao Vizcaya 35,842,797 194,000 Banco Santander S.A. 14,632,475 -------------- 50,475,272 Sweden (2.2%) - ------------------------------------------------------------------------------------------------------------ 669,450 Sandvik AB Class B 16,471,679 979,000 Skandia Forsakrings AB 28,331,592 1,475,000 Telefonaktiebolaget LM Ericsson Class B 46,634,371 -------------- 91,437,642 Switzerland (5.6%) - ------------------------------------------------------------------------------------------------------------ 23,260 ABB AG Baden 28,244,286 29,620 Adecco S.A. + 9,913,633 33,280 Nestle S.A. + 40,524,626 26,287 Novartis AG ADR 34,727,452 5,703 Roche Holdings AG 48,300,918 40,413 Swiss Reinsurance Co. 46,901,074 22,500 Union Bank of Switzerland 21,352,041 -------------- 229,964,030 Taiwan (0.2%) - ------------------------------------------------------------------------------------------------------------ 907,000 Acer Inc. + 2,313,441 53,500 Advanced Semiconductor Engineering GDR + 1,144,900 116,800 China Steel Corp. GDR 2,628,000 1,115,000 Yieh Phui Enterprise + 1,629,740 -------------- 7,716,081 Thailand (0.2%) - ------------------------------------------------------------------------------------------------------------ 223,600 Advanced Info Service Public Co., Ltd. 1,490,096 115,600 Bangkok Bank Public Co. Ltd. 1,071,436 296,200 Central Pattana Public Co. Ltd. 1,020,988 441,000 Industrial Finance Corp. 1,182,306 302,000 Siam Makro Public Co. 665,071 130,000 Thai Farmers Bank Public Co. 786,672 -------------- 6,216,569 United Kingdom (8.9%) - ------------------------------------------------------------------------------------------------------------ 1,448,200 Argos PLC 15,097,782 706,000 British Airways + 8,087,623 1,130,400 British Petroleum Co. PLC + 12,986,044 107,200 Commerce Bank of Lebanon 144A GDR 1,881,360 1,912,600 Compass Group PLC 21,071,983 1,721,000 Dixons Group PLC 14,130,023 1,055,000 Lonrho PLC 2,384,516 995,000 Molins PLC 10,574,890 146,900 Ramco Energy PLC ADR + 2,368,763 4,422,000 Reuters Holdings PLC ADR 45,526,246 1,785,657 RTZ Corp. PLC 28,351,128 1,317,400 SEMA Group PLC + 25,597,919 2,139,000 Siebe PLC 31,653,162 3,695,426 SmithKline Beecham PLC ADR 59,452,305 2,198,000 Smiths Industries PLC 26,944,717 14 Tate & Lyle PLC 104 12,328,186 Vodafone Group PLC 55,110,234 -------------- 361,218,799 United States (24.8%) - ------------------------------------------------------------------------------------------------------------ 431,500 Abbott Laboratories 26,321,500 205,100 Adaptec, Inc. + 7,588,700 124,200 AES Corp. + 8,104,050 82,400 Aetna Inc. 7,508,700 680,000 AFLAC Inc. 29,240,000 143,400 American Express Co. 9,446,475 118,100 American International Group, Inc. 15,175,850 216,000 Apollo Group, Inc. Class A + 5,805,000 109,900 Ascend Communications, Inc. + 5,027,925 131,400 Avon Products, Inc. 8,097,525 240,300 Baker Hughes Inc. 8,290,350 171,800 Barnett Banks, Inc. 8,396,725 39,600 Basic Petroleum International, Ltd. + 1,242,450 163,700 BMC Software, Inc. + 7,080,025 98,900 Boeing Co. 9,754,013 376,600 Bristol-Myers Squibb Co. 24,667,300 289,100 Campbell Soup Co. 14,780,238 253,150 Cardinal Health, Inc. 13,480,238 166,900 Cascade Communications Corp. + 5,257,350 61,000 Cincinnati Bell, Inc. 3,416,000 143,900 Cisco Systems, Inc. + 7,446,825 114,500 Citicorp 12,895,563 80,100 Clorox Co. 10,202,738 687,600 Coca-Cola Co. 43,748,550 276,200 Coca-Cola Enterprises, Inc. 16,675,575 150,400 Compaq Computer Corp. + 12,840,400 204,200 Computer Associates Intl., Inc. 10,618,400 272,700 ConAgra, Inc. 15,714,338 233,900 Consolidated Stores Corp. + 9,356,000 24,200 Dayton Hudson Corp. 1,089,000 198,300 Diebold, Inc. 6,643,050 270,200 Disney (Walt) Productions, Inc. 22,156,400 311,800 EMC Corp. + 11,341,725 247,400 Equifax, Inc. 7,112,750 136,450 Franklin Resources, Inc. 8,067,606 226,300 Gartner Group Inc. Class A + 5,940,375 380,800 General Electric Co. 42,221,200 249,800 Gillette Co. 21,233,000 155,400 Halliburton Co. 10,975,125 94,700 HBO & Co. 5,066,450 651,500 HEALTHSOUTH Corp. + 12,867,125 195,000 Honeywell, Inc. 13,771,875 272,900 Intel Corp. 41,787,813 195,100 Jones Apparel Group, Inc. + 8,145,425 155,900 KLA Instruments Corp. + 6,937,550 235,700 Lilly (Eli) & Co. 20,712,138 213,900 Marriott International, Inc. 11,817,975 352,750 MBNA Corp. 11,640,750 429,600 Merck & Co., Inc. 38,878,800 232,200 Microsoft Corp. + 28,212,300 243,500 Motorola, Inc. 13,940,375 278,600 Nautica Enterprises, Inc. + 6,164,025 246,500 Nike, Inc. 13,865,625 465,400 Omnicare, Inc. 11,344,125 121,000 Oxford Health Plans Inc. + 7,970,875 224,000 Parametric Technology Corp. + 10,136,000 162,000 Paychex, Inc. 7,583,625 204,500 PeopleSoft, Inc. + 8,486,750 762,900 Philip Morris Cos., Inc. 30,039,188 199,000 Praxair, Inc. 10,273,375 220,300 Procter & Gamble Co. 27,702,725 148,200 Quintiles Transnational Corp. + 7,539,675 419,000 Revco D.S., Inc. + 18,226,500 176,500 Rite Aid Corp. 8,119,000 221,800 Safeway, Inc. + 9,897,825 331,500 Sara Lee Corp. 13,923,000 213,800 Sears, Roebuck & Co. 10,262,400 170,500 Sonat, Inc. 9,739,813 44,625 Sun Bancorp, Inc. + 970,594 219,800 SunAmerica, Inc. 10,110,800 269,700 Symbol Technologies, Inc. 8,731,538 178,000 Tellabs, Inc. + 7,097,750 230,400 TJX Cos., Inc. (The) 10,886,400 216,733 Travelers Group Inc. 12,001,590 241,200 U.S. Surgical Corp. 8,261,100 235,100 USA Waste Services, Inc. + 7,699,505 221,600 Walgreen Co. 10,193,600 175,400 Warner-Lambert Co. 17,189,200 -------------- 1,013,154,213 Venezuela (--%) - ------------------------------------------------------------------------------------------------------------ 100,000 Venepal 144A GDR + 162,500 -------------- Total Common Stocks (cost $3,380,178,733) $3,876,269,404 PREFERRED STOCKS (0.6%) * NUMBER OF SHARES VALUE - ------------------------------------------------------------------------------------------------------------ 450,800,000 Banco Bradesco BRC .22 No Par Value (NPV) pfd. (Brazil) $ 3,730,876 6,750,000 Banco Itau S.A. BRC 6.86 NPV pfd. (Brazil) 3,650,193 2,644,357 Centrais Electricas de Santa Catarina S.A. BRC .0191 NPV pfd. (Brazil) 3,730,401 3,100,000 CIA Tecidos Norte de Minas BRC 10.9566 NPV pfd. (Brazil) 1,300,292 237,116,000 Companhia Paranaense de Energia-Copel BRC .48 NPV pfd. (Brazil) 3,690,652 17,600,000 Petroleo Brasileiro S.A. BRC 6.0672 NPV pfd. (Brazil) 3,699,426 24,900,000 Telecomunicacoes de Minas Gerais - Telemig BRC 4.4379 pfd. (Brazil) 3,966,952 349 Telecomunicacoes do Rio de Janeiro S.A. Telerj BRC 4.3196 NPV pfd. (Brazil) 58 -------------- Total Preferred Stocks (cost $20,125,786) $ 23,768,850 UNITS (0.3%) * (cost $11,138,400) NUMBER OF UNITS VALUE - ------------------------------------------------------------------------------------------------------------ 7,000,000 Grand Hotel Group $ 10,870,972 CONVERTIBLE BONDS AND NOTES (0.2%) * PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------ $ 2,810,000 Alfa S.A. 144A cv. sub. notes 8s, 2000 (Mexico) $ 3,487,914 1,850,000 Formosa Chemicals & Fibre Corp. 144A cv. unsub. 1 3/4s, 2001 (Taiwan) 1,993,375 2,280,000 Qingling Motors Co., Ltd. 144A cv. bonds 3 1/2s, 2002 (China) 2,337,000 -------------- Total Convertible Bonds and Notes (cost $7,887,060) $ 7,818,289 INVESTMENT COMPANIES (0.1%) * PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------ $104,200 Fleming Russia Securities Fund Ltd. (Russia) + $ 1,771,400 21,800 India Magnum Fund Class A (India) + 981,000 72,000 Taiwan Fund, Inc. (Taiwan) 1,809,000 -------------- Total Investment Companies (cost $3,805,709) $ 4,561,400 SHORT-TERM INVESTMENTS (1.6%) * PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------ $19,230,000 Sheffield Receivables Corp. effective yield of 5.52%, May 27, 1997 $ 19,153,337 45,561,000 Interest in $492,645,000 joint repurchase agreement dated April 30, 1997 with Morgan (J.P.) & Co., Inc. due May 1, 1997 with respect to various U.S. Treasury obligations--maturity value of $45,567,872 for an effective yield of 5.43% 45,567,872 -------------- Total Short-Term Investments (cost $64,690,748) $ 64,721,209 - ------------------------------------------------------------------------------------------------------------ Total Investments (cost $3,487,826,436) *** $3,988,010,124 - ------------------------------------------------------------------------------------------------------------ * Percentages indicated are based on net assets of $4,086,814,416. *** The aggregate identified cost on a tax basis is $3,498,905,242, resulting in gross unrealized appreciation and depreciation of $614,979,942 and $125,875,060, respectively, or net unrealized appreciation of $489,104,882. + Non-income-producing security. 144A after the name of a security represents those exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. ADR, ADS, or GDR after the name of a foreign holding stands for American Depository Receipts, American Depository Shares, or Global Depository Receipts, respectively, representing ownership of foreign securities on deposit with a domestic custodian bank. Diversification by Country at April 30, 1997: (as percentage of Market Value) Australia 2.9% Brazil 1.0 Canada 1.5 Finland 1.1 France 5.7 Germany 4.0 Hong Kong 2.9 Ireland 1.5 Italy 2.1 Japan 17.5 Malaysia 1.6 Mexico 1.1 Netherlands 6.1 Portugal 1.2 Singapore 1.0 Spain 1.3 Sweden 2.3 Switzerland 5.8 United Kingdom 9.1 United States 27.3 Other 3.0 ---- Total 100% ====
- ---------------------------------------------------------------------------------------- Forward Currency Contracts to Sell at April 30, 1997 (aggregate face value $352,804,621) Market Aggregate Face Delivery Unrealized Value Value Date Appreciation - ---------------------------------------------------------------------------------------- Deutschemarks 81,505,904 94,513,976 May 97 $ 13,008,072 French Francs 85,945,842 97,147,749 May 97 11,201,907 Japanese Yen 87,109,317 90,486,526 May 97 3,377,209 Japanese Yen 70,263,216 70,656,370 Aug 97 393,154 - ---------------------------------------------------------------------------------------- $ 27,980,342 - ---------------------------------------------------------------------------------------- The accompanying notes are an integral part of these financial statements.
Statement of assets and liabilities April 30, 1997 (Unaudited) Assets - --------------------------------------------------------------------------------------------------- Investments in securities, at value (identified cost $3,487,826,436) (Note 1) $3,988,010,124 - --------------------------------------------------------------------------------------------------- Cash 502,841 - --------------------------------------------------------------------------------------------------- Foreign currency 245,627 - --------------------------------------------------------------------------------------------------- Dividends, interest, and other receivables 14,115,532 - --------------------------------------------------------------------------------------------------- Receivable for shares of the fund sold 8,471,187 - --------------------------------------------------------------------------------------------------- Receivable for securities sold 86,186,496 - --------------------------------------------------------------------------------------------------- Receivable for open forward currency contracts 27,980,342 - --------------------------------------------------------------------------------------------------- Receivable for closed forward currency contracts 21,116,045 - --------------------------------------------------------------------------------------------------- Total assets 4,146,628,194 Liabilities - --------------------------------------------------------------------------------------------------- Payable for securities purchased 40,873,393 - --------------------------------------------------------------------------------------------------- Payable for shares of the fund repurchased 7,542,473 - --------------------------------------------------------------------------------------------------- Payable for compensation of Manager (Note 2) 6,237,110 - --------------------------------------------------------------------------------------------------- Payable for investor servicing and custodian fees (Note 2) 1,885,487 - --------------------------------------------------------------------------------------------------- Payable for compensation of Trustees (Note 2) 59,350 - --------------------------------------------------------------------------------------------------- Payable for administrative services (Note 2) 3,374 - --------------------------------------------------------------------------------------------------- Payable for distribution fees (Note 2) 1,710,328 - --------------------------------------------------------------------------------------------------- Payable for closed forward currency contracts 1,030,880 - --------------------------------------------------------------------------------------------------- Other accrued expenses 471,383 - --------------------------------------------------------------------------------------------------- Total liabilities 59,813,778 - --------------------------------------------------------------------------------------------------- Net assets $4,086,814,416 Represented by - --------------------------------------------------------------------------------------------------- Paid-in capital (Notes 1 and 4) $3,291,788,349 - --------------------------------------------------------------------------------------------------- Distributions in excess of net investment income (Note 1) (15,559,064) - --------------------------------------------------------------------------------------------------- Accumulated net realized gain on investments and foreign currency transactions (Note 1) 282,863,512 - --------------------------------------------------------------------------------------------------- Net unrealized appreciation of investments and assets and liabilities in foreign currencies 527,721,619 - --------------------------------------------------------------------------------------------------- Total -- Representing net assets applicable to capital shares outstanding $4,086,814,416 Computation of net asset value and offering price - --------------------------------------------------------------------------------------------------- Net asset value and redemption price per class A share ($2,451,603,079 divided by 218,215,933 shares) $11.23 - --------------------------------------------------------------------------------------------------- Offering price per class A share (100/94.25 of $11.23)* $11.92 - --------------------------------------------------------------------------------------------------- Net asset value and offering price per class B share ($1,510,905,091 divided by 138,414,813 shares)** $10.92 - --------------------------------------------------------------------------------------------------- Net asset value and redemption price per class M share ($33,701,615 divided by 3,016,226 shares) $11.17 - --------------------------------------------------------------------------------------------------- Offering price per class M share (100/96.50 of $11.17)* $11.58 - --------------------------------------------------------------------------------------------------- Net asset value, offering price and redemption price per class Y share ($90,604,631 divided by 7,965,232 shares) - --------------------------------------------------------------------------------------------------- * On single retail sales of less than $50,000 or more and on group sales the offering price is reduced. ** Redemption price per share is equal to net asset vale less any applicable contingent deferred sales charge. The accompanying notes are an integral part of these financial statements.
Statement of operations Six months ended April 30, 1997 (Unaudited) Investment income: - -------------------------------------------------------------------------------------------------- Dividends (net of foreign tax of $1,899,512) $ 26,196,286 - -------------------------------------------------------------------------------------------------- Interest 2,735,608 - -------------------------------------------------------------------------------------------------- Total investment income 28,931,894 Expenses: Compensation of Manager (Note 2) 12,412,433 - -------------------------------------------------------------------------------------------------- Investor servicing and custodian fees (Note 2) 6,267,412 - -------------------------------------------------------------------------------------------------- Compensation of Trustees (Note 2) 85,962 - -------------------------------------------------------------------------------------------------- Administrative services (Note 2) 19,435 - -------------------------------------------------------------------------------------------------- Distribution fees -- Class A (Note 2) 2,894,848 - -------------------------------------------------------------------------------------------------- Distribution fees -- Class B (Note 2) 7,118,941 - -------------------------------------------------------------------------------------------------- Distribution fees -- Class M (Note 2) 109,401 - -------------------------------------------------------------------------------------------------- Reports to shareholders 293,949 - -------------------------------------------------------------------------------------------------- Registration fees 130,638 - -------------------------------------------------------------------------------------------------- Auditing 47,986 - -------------------------------------------------------------------------------------------------- Legal 16,327 - -------------------------------------------------------------------------------------------------- Postage 155,700 - -------------------------------------------------------------------------------------------------- Other 187,196 - -------------------------------------------------------------------------------------------------- Total expenses 29,740,228 - -------------------------------------------------------------------------------------------------- Expense reduction (Note 2) (741,058) - -------------------------------------------------------------------------------------------------- Net expenses 28,999,170 - -------------------------------------------------------------------------------------------------- Net investment loss (67,276) - -------------------------------------------------------------------------------------------------- Net realized gain on investments (Notes 1 and 3) 242,188,425 - -------------------------------------------------------------------------------------------------- Net realized gain on foreign currency transactions (Note 1) 53,337,872 - -------------------------------------------------------------------------------------------------- Net unrealized appreciation of assets and liabilities in foreign currencies during the period 13,039,296 - -------------------------------------------------------------------------------------------------- Net unrealized appreciation of investments during the period 13,285,013 - -------------------------------------------------------------------------------------------------- Net gain on investments 321,850,606 - -------------------------------------------------------------------------------------------------- Net increase in net assets resulting from operations $321,783,330 - -------------------------------------------------------------------------------------------------- The accompanying notes are an integral part of these financial statements.
Statement of changes in net assets Six months ended Year ended April 30 October 31 1997* 1996 - ---------------------------------------------------------------------------------------------------------------------- Increase in net assets - ---------------------------------------------------------------------------------------------------------------------- Operations: - ---------------------------------------------------------------------------------------------------------------------- Net investment income (loss) $ (67,276) $ 18,142,868 - ---------------------------------------------------------------------------------------------------------------------- Net realized gain on investments 295,526,297 253,869,045 - ---------------------------------------------------------------------------------------------------------------------- Net unrealized appreciation of investments 26,324,309 180,077,125 - ---------------------------------------------------------------------------------------------------------------------- Net increase in net assets resulting from operations 321,783,330 452,089,038 Distributions to shareholders: - ---------------------------------------------------------------------------------------------------------------------- From net investment income - ---------------------------------------------------------------------------------------------------------------------- Class A (54,577,494) (29,547,833) - ---------------------------------------------------------------------------------------------------------------------- Class B (25,358,431) (11,187,413) - ---------------------------------------------------------------------------------------------------------------------- Class M (590,659) (95,055) - ---------------------------------------------------------------------------------------------------------------------- Class Y (1,800,840) (836,209) - ---------------------------------------------------------------------------------------------------------------------- From net realized gain on investments Class A (108,162,646) (68,153,175) - ---------------------------------------------------------------------------------------------------------------------- Class B (68,080,503) (40,919,727) - ---------------------------------------------------------------------------------------------------------------------- Class M (1,292,807) (292,366) - ---------------------------------------------------------------------------------------------------------------------- Class Y (3,260,656) (1,697,504) - ---------------------------------------------------------------------------------------------------------------------- Increase from capital share transactions (Note 4) 423,595,645 591,315,666 - ---------------------------------------------------------------------------------------------------------------------- Total increase in net assets 482,254,939 890,675,422 Net assets - ---------------------------------------------------------------------------------------------------------------------- Beginning of period 3,604,559,477 2,713,884,055 - ---------------------------------------------------------------------------------------------------------------------- End of period (including undistributed net investment income of $15,559,064 and $66,835,636, respectively) $4,086,814,416 $3,604,559,477 - ---------------------------------------------------------------------------------------------------------------------- * 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 Per-share April 30 operating performance (Unaudited) Year ended October 31 - ------------------------------------------------------------------------------------------------------------------------------------ 1997 1996 1995 1994 1993 1992 - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $11.10 $10.13 $9.92 $9.30 $7.25 $7.64 - ------------------------------------------------------------------------------------------------------------------------------------ Investment operations - ------------------------------------------------------------------------------------------------------------------------------------ Net investment income .01 .09 (b) .09 .02 .07 .10 - ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) on investments .94 1.47 .43 .77 2.06 (.22) - ------------------------------------------------------------------------------------------------------------------------------------ Total from investment operations .95 1.56 .52 .79 2.13 (.12) - ------------------------------------------------------------------------------------------------------------------------------------ Less distributions: - ------------------------------------------------------------------------------------------------------------------------------------ From net investment income (.28) (.18) (.01) -- (.07) (.12) - ------------------------------------------------------------------------------------------------------------------------------------ From net realized gain on investments (.54) (.41) (.30) (.17) (.01) (.15) - ------------------------------------------------------------------------------------------------------------------------------------ Total distributions (.82) (.59) (.31) (.17) (.08) (.27) - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $11.23 $11.10 $10.13 $9.92 $9.30 $7.25 - ------------------------------------------------------------------------------------------------------------------------------------ Ratios and supplemental data - ------------------------------------------------------------------------------------------------------------------------------------ Total investment return at net asset value (%)(a) 8.93* 16.10 5.64 8.62 29.62 (1.51) - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $2,451,603 $2,186,426 $1,689,656 $1,507,550 $940,985 $630,764 - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of expenses to average net assets (%)(c) .63* 1.27 1.28 1.33 1.39 1.56 - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of net investment income to average net assets (%) .13* .84 1.05 .83 .85 1.28 - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover (%) 67.72* 72.88 63.31 17.45 49.53 61.84 - ------------------------------------------------------------------------------------------------------------------------------------ Average commission rate paid (d) $.0228 $.0298 - ------------------------------------------------------------------------------------------------------------------------------------ + Commencement of operations. * Not annualized. (a) Total investment return assumes dividend reinvestment and does not reflect the effect of sales charges. (b) Per share net investment income has been determined on the basis of the weighted average number of shares outstanding during the period. (c) The ratio of expenses to average net assets for the period ended October 31, 1995, and thereafter, includes amounts paid through brokerage service and expense offset arrangements. Prior period ratios exclude these amounts (Note 2). (d) Average commission rate paid on security trades is presented for fiscal periods beginning on or after September 1, 1995.
Financial highlights (For a share outstanding throughout the period) CLASS B - ------------------------------------------------------------------------------------------------------------------------------------ Six months ended For the period Per-share April 30 April 27, 1992+ operating performance (Unaudited) Year ended October 31 to Oct. 31 - ------------------------------------------------------------------------------------------------------------------------------------ 1997 1996 1995 1994 1993 1992 - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $10.78 $9.86 $9.74 $9.19 $7.22 $7.50 - ------------------------------------------------------------------------------------------------------------------------------------ Investment operations - ------------------------------------------------------------------------------------------------------------------------------------ Net investment income (.02) .01 (b) .03 .01 .05 .01 - ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) on investments .90 1.43 .40 .71 1.99 (.29) - ------------------------------------------------------------------------------------------------------------------------------------ Total from investment operations .88 1.44 .43 .72 2.04 (.28) - ------------------------------------------------------------------------------------------------------------------------------------ Less distributions: - ------------------------------------------------------------------------------------------------------------------------------------ From net investment income (.20) (.11) (.01) -- (.06) -- - ------------------------------------------------------------------------------------------------------------------------------------ From net realized gain on investments (.54) (.41) (.30) (.17) (.01) -- - ------------------------------------------------------------------------------------------------------------------------------------ Total distributions (.74) (.52) (.31) (.17) (.07) -- - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $10.92 $10.78 $9.86 $9.74 $9.19 $7.22 - ------------------------------------------------------------------------------------------------------------------------------------ Ratios and supplemental data - ------------------------------------------------------------------------------------------------------------------------------------ Total investment return at net asset value (%)(a) 8.58* 15.25 4.80 7.95 28.44 (3.73)* - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $1,510,905 $1,327,246 $975,794 $801,443 $233,195 $18,154 - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of expenses to average net assets (%)(c) 1.01* 2.02 2.04 2.11 2.09 1.16* - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of net investment income to average net assets (%) (.24)* .09 .29 .12 .23 .21* - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover (%) 67.72* 72.88 63.31 17.45 49.53 61.84 - ------------------------------------------------------------------------------------------------------------------------------------ Average commission rate paid (d) $.0228 $.0298 - ------------------------------------------------------------------------------------------------------------------------------------ + Commencement of operations. * Not annualized. (a) Total investment return assumes dividend reinvestment and does not reflect the effect of sales charges. (b) Per share net investment income has been determined on the basis of the weighted average number of shares outstanding during the period. (c) The ratio of expenses to average net assets for the period ended October 31, 1995, and thereafter, includes amounts paid through brokerage service and expense offset arrangements. Prior period ratios exclude these amounts (Note 2). (d) Average commission rate paid on security trades is presented for fiscal periods beginning on or after September 1, 1995.
Financial highlights (For a share outstanding throughout the period) CLASS M - ------------------------------------------------------------------------------------------------------------------------------------ Six months ended For the period Per-share April 30 Year ended March 1, 1995+ operating performance (Unaudited) Oct. 31 to Oct. 31 - ------------------------------------------------------------------------------------------------------------------------------------ 1997 1996 1995 - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $11.05 $10.09 $8.86 - ------------------------------------------------------------------------------------------------------------------------------------ Investment operations - ------------------------------------------------------------------------------------------------------------------------------------ Net investment income .01 .03 (b) .01 - ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) on investments .90 1.47 1.22 - ------------------------------------------------------------------------------------------------------------------------------------ Total from investment operations .91 1.50 1.23 - ------------------------------------------------------------------------------------------------------------------------------------ Less distributions: - ------------------------------------------------------------------------------------------------------------------------------------ From net investment income (.25) (.13) -- - ------------------------------------------------------------------------------------------------------------------------------------ From net realized gain on investments (.54) (.41) -- - ------------------------------------------------------------------------------------------------------------------------------------ Total distributions (.79) (.54) -- - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $11.17 $11.05 $10.09 - ------------------------------------------------------------------------------------------------------------------------------------ Ratios and supplemental data - ------------------------------------------------------------------------------------------------------------------------------------ Total investment return at net asset value (%)(a) 8.62* 15.54 13.88* - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $33,702 $24,179 $5,853 - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of expenses to average net assets (%)(c) .88* 1.80 1.23* - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of net investment income to average net assets (%) (.11)* .32 .17* - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover (%) 67.72* 72.88 63.31 - ------------------------------------------------------------------------------------------------------------------------------------ Average commission rate paid (d) $.0228 $.0298 - ------------------------------------------------------------------------------------------------------------------------------------ + Commencement of operations. * Not annualized. (a) Total investment return assumes dividend reinvestment and does not reflect the effect of sales charges. (b) Per share net investment income has been determined on the basis of the weighted average number of shares outstanding during the period. (c) The ratio of expenses to average net assets for the period ended October 31, 1995, and thereafter, includes amounts paid through brokerage service and expense offset arrangements. Prior period ratios exclude these amounts (Note 2). (d) Average commission rate paid on security trades is presented for fiscal periods beginning on or after September 1, 1995.
Financial highlights (For a share outstanding throughout the period) CLASS Y - ------------------------------------------------------------------------------------------------------------------------------------ Six months ended For the period Per-share April 30 June 15, 1994+ operating performance (Unaudited) Year ended Oct. 31 to Oct. 31 - ------------------------------------------------------------------------------------------------------------------------------------ 1997 1996 1995 1994 - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $11.24 $10.25 $10.00 $9.46 - ------------------------------------------------------------------------------------------------------------------------------------ Investment operations - ------------------------------------------------------------------------------------------------------------------------------------ Net investment income .04 .12 (b) .09 .01 - ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) on investments .94 1.48 .47 .53 - ------------------------------------------------------------------------------------------------------------------------------------ Total from investment operations .98 1.60 .56 .54 - ------------------------------------------------------------------------------------------------------------------------------------ Less distributions: - ------------------------------------------------------------------------------------------------------------------------------------ From net investment income (.30) (.20) (.01) -- - ------------------------------------------------------------------------------------------------------------------------------------ From net realized gain on investments (.54) (.41) (.30) -- - ------------------------------------------------------------------------------------------------------------------------------------ Total distributions (.84) (.61) (.31) -- - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $11.38 $11.24 $10.25 $10.00 - ------------------------------------------------------------------------------------------------------------------------------------ Ratios and supplemental data - ------------------------------------------------------------------------------------------------------------------------------------ Total investment return at net asset value (%)(a) 9.17* 16.39 6.00 5.71* - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $90,605 $66,708 $42,582 $29,396 - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of expenses to average net assets (%)(c) .51* 1.02 1.06 .37* - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of net investment income to average net assets (%) .27* 1.09 1.20 .42* - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover (%) 67.72* 72.88 63.31 17.45 - ------------------------------------------------------------------------------------------------------------------------------------ Average commission rate paid (d) $.0228 $.0298 - ------------------------------------------------------------------------------------------------------------------------------------ + Commencement of operations. * Not annualized. (a) Total investment return assumes dividend reinvestment and does not reflect the effect of sales charges. (b) Per share net investment income has been determined on the basis of the weighted average number of shares outstanding during the period. (c) The ratio of expenses to average net assets for the period ended October 31, 1995, and thereafter, includes amounts paid through brokerage service and expense offset arrangements. Prior period ratios exclude these amounts (Note 2). (d) Average commission rate paid on security trades is presented for fiscal periods beginning on or after September 1, 1995.
Notes to financial statements April 30, 1997 (Unaudited) Note 1 Significant accounting policies Putnam Global Growth 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 capital appreciation by investing primarily in common stocks traded in securities markets located in a number of foreign countries and in the United States. The fund offers class A, class B, class M and class Y shares. Class A shares are sold with a maximum front-end sales charge of 5.75%. Class B shares, which convert to class A shares after approximately eight years, do not pay a front-end sales charge but pay a higher ongoing distribution fee than class A shares, and may be subject to a contingent deferred sales charge, if those shares are redeemed within six years of purchase. Class M shares are sold with a maximum front end sales charge of 3.50% and pay an ongoing distribution fee that is higher than class A shares but lower than class B shares. Class Y shares, which are sold at net asset value, are generally subject to the same expenses as class A, class B and class M shares, but do not bear a distribution fee. Class Y shares are sold to defined contribution plans that initially invest at least $250 million in a combination of Putnam Funds. 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 followed by the fund in the preparation of its financial statements. The preparation of financial statements is in conformity with generally accepted accounting principles and requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. Actual results could differ from those estimates. A) Security valuation Investments for which market quotations are readily available are stated at market value, which is determined using the last reported sale price, or, if no sales are reported -- as in the case of some securities traded over-the-counter -- the last reported bid price. Securities quoted in foreign currencies are translated into U.S. dollars at the current exchange rate. Short-term investments having remaining maturities of 60 days or less are stated at amortized cost which approximates market, and other investments are stated at fair value following procedures approved by the Trustees. B) Joint trading account Pursuant to an exemptive order issued by the Securities and Exchange Commission, the fund may transfer uninvested cash balances into a joint trading account along with the cash of other registered investment companies and certain other accounts managed by Putnam Investment Management, Inc. ("Putnam Management"), the fund's Manager, a wholly-owned subsidiary of Putnam Investments, Inc.. These balances may be invested in one or more repurchase agreements and/or short-term money market instruments. C) Repurchase agreements The fund, or any joint trading account, through its custodian, receives delivery of the underlying securities, the market value of which at the time of purchase is required to be in an amount at least equal to the resale price, including accrued interest. Putnam Management is responsible for determining that the value of these underlying securities is at all times at least equal to the resale price, including accrued interest. D) Security transactions and related investment income Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Interest income is recorded on the accrual basis. Discounts on original issue bonds are accreted according to the effective yield method. Dividend income is recorded on the ex-dividend date except that certain dividends from foreign securities are recorded as soon as the fund is informed of the ex-dividend date. E) Foreign currency translation The accounting records of the fund are maintained in U.S. dollars. The market value of foreign securities, currency holdings, other assets and liabilities are recorded in the books and records of the fund after translation to U.S. dollars based on the exchange rates on that day. The cost of each security is determined using historical exchange rates. Income and withholding taxes are translated at prevailing exchange rates when accrued or incurred. The fund does not isolate that portion of realized or unrealized gains or losses resulting from changes in the foreign exchange rate on investments from fluctuations arising from changes in the market prices of the securities. Such fluctuations are included with the net realized and unrealized gain or loss on investments. Net realized gains and losses on foreign currency transactions represent net exchange gains or losses on 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 gains and losses on foreign currency transactions 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. F) 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. G) 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. H) 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. 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% of any excess thereafter. Prior to February 20, 1997, any amount over $1.5 billion was based on a rate of 0.60%. 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. Trustees of the fund receive an annual Trustees fee of $4,470 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 the fund or in other 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. Custodial functions for the fund's assets are provided by Putnam Fiduciary Trust Company (PFTC), a wholly-owned subsidiary of Putnam Investments, Inc. Investor servicing agent functions are provided by Putnam Investor Services, a division of PFTC. For the six months ended April 30, 1997, fund expenses were reduced by $741,058 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 these assets utilized in connection with the expense offset arrangements in an income producing asset if it had not entered into such arrangements. The fund has adopted distribution plans (the "Plans") with respect to its class A, class B and class M shares pursuant to Rule 12b-1 under the Investment Company Act of 1940. The purpose of the Plans is to compensate Putnam Mutual Funds Corp., a wholly-owned subsidiary of Putnam Investments Inc., for services provided and expenses incurred by it in distributing shares of the fund. The Plans provide for payments by the fund to Putnam Mutual Funds Corp. at an annual rate up to 0.35%, 1.00% and 1.00% of the average net assets attributable to class A, class B and class M shares, respectively. The Trustees have approved payment by the fund at an annual rate of 0.25%, 1.00% and 0.75% of the average net assets attributable to class A, class B and class M shares, respectively. For the six months ended April 30, 1997, Putnam Mutual Funds Corp., acting as underwriter received net commissions of $551,536 and $14,405 from the sale of class A and class M shares, respectively and received $868,922 in contingent deferred sales charges from redemptions of class B shares. A deferred sales charge of up to 1% is assessed on certain redemptions of class A shares. For the six months ended April 30, 1997, Putnam Mutual Funds Corp., acting as underwriter received $22,360 on class A redemptions. Note 3 Purchases and sales of securities During the six months ended April 30, 1997, purchases and sales of investment securities other than short-term investments aggregated $2,749,366,092 and $2,602,804,556, 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 April 30, 1997, there was an unlimited number of shares of beneficial interest authorized. Transactions in capital shares were as follows: Six months ended April 30, 1997 - ------------------------------------------------------------ Class A Shares Amount - ------------------------------------------------------------ Shares sold 51,088,702 $ 565,964,895 - ------------------------------------------------------------ Shares issued in connection with reinvestment of distributions 14,408,756 154,029,605 - ------------------------------------------------------------ 65,497,458 719,994,500 Shares repurchased (44,195,814) (489,793,240) - ------------------------------------------------------------ Net increase 21,301,644 $ 230,201,260 - ------------------------------------------------------------ Year ended October 31, 1996 - ------------------------------------------------------------ Class A Shares Amount - ------------------------------------------------------------ Shares sold 74,479,884 $ 786,801,972 - ------------------------------------------------------------ Shares issued in connection with reinvestment of distributions 9,384,293 91,684,535 - ------------------------------------------------------------ 83,864,177 878,486,507 Shares repurchased (53,754,835) (567,550,801) - ------------------------------------------------------------ Net increase 30,109,342 $ 310,935,706 - ------------------------------------------------------------ Six months ended April 30, 1997 - ------------------------------------------------------------ Class B Shares Amount - ------------------------------------------------------------ Shares sold 18,708,983 $ 201,854,085 - ------------------------------------------------------------ Shares issued in connection with reinvestment of distributions 8,389,249 87,332,064 - ------------------------------------------------------------ 27,098,232 289,186,149 Shares repurchased (11,811,092) (127,350,166) - ------------------------------------------------------------ Net increase 15,287,140 $ 161,835,983 - ------------------------------------------------------------ Year ended October 31, 1996 - ------------------------------------------------------------ Class B Shares Amount - ------------------------------------------------------------ Shares sold 38,966,921 $ 400,645,801 - ------------------------------------------------------------ Shares issued in connection with reinvestment of distributions 5,083,057 48,543,206 - ------------------------------------------------------------ 44,049,978 449,189,007 Shares repurchased (19,905,910) (204,642,212) - ------------------------------------------------------------ Net increase 24,144,068 $ 244,546,795 - ------------------------------------------------------------ Six months ended April 30, 1997 - ------------------------------------------------------------ Class M Shares Amount - ------------------------------------------------------------ Shares sold 1,163,306 $ 12,883,518 - ------------------------------------------------------------ Shares issued in connection with reinvestment of distributions 168,874 1,798,504 - ------------------------------------------------------------ 1,332,180 14,682,022 Shares repurchased (504,374) (5,576,649) - ------------------------------------------------------------ Net increase 827,806 $ 9,105,373 - ------------------------------------------------------------ Year ended October 31, 1996 - ------------------------------------------------------------ Class M Shares Amount - ------------------------------------------------------------ Shares sold 1,976,000 $ 20,965,783 - ------------------------------------------------------------ Shares issued in connection with reinvestment of distributions 37,518 366,551 - ------------------------------------------------------------ 2,013,518 21,332,334 Shares repurchased (404,965) (4,274,542) - ------------------------------------------------------------ Net increase 1,608,553 $ 17,057,792 - ------------------------------------------------------------ Six months ended April 30, 1997 - ------------------------------------------------------------ Class Y Shares Amount - ------------------------------------------------------------ Shares sold 2,887,485 $ 32,294,938 - ------------------------------------------------------------ Shares issued in connection with reinvestment of distributions 470,441 5,085,473 - ------------------------------------------------------------ 3,357,926 37,380,411 Shares repurchased (1,325,468) (14,927,382) - ------------------------------------------------------------ Net increase 2,032,458 $ 22,453,029 - ------------------------------------------------------------ Year ended October 31, 1996 - ------------------------------------------------------------ Class Y Shares Amount - ------------------------------------------------------------ Shares sold 3,135,536 $ 33,518,710 - ------------------------------------------------------------ Shares issued in connection with reinvestment of distributions 256,720 2,533,713 - ------------------------------------------------------------ 3,392,256 36,052,423 Shares repurchased (1,614,376) (17,277,050) - ------------------------------------------------------------ Net increase 1,777,880 $ 18,775,373 - ------------------------------------------------------------ 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 Robert J. Swift Vice President and Fund Manager Anthony W. Regan Vice President and Fund Manager Ami Kuan Danoff Vice President and Fund Manager Kelly A. Morgan Vice President and Fund Manager Carol McMullen Vice President and Fund Manager C. Kim Goodwin Vice President and Fund Manager Thomas Haslett 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 Fund. It may also be used as sales literature when preceded or accompanied by the current prospectus, which gives details of sales charges, investment objectives, and operating policies of the fund, and the most recent copy of Putnam's Quarterly Performance Summary. For more information, or to request a prospectus, call toll free: 1-800-225-1581. You can also learn more at Putnam Investments' website: http://www.putnaminv.com. Shares of mutual funds are not deposits or obligations of, or guaranteed or endorsed by, any financial institution, are not insured by the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board or any other agency, and involve risk, including the possible loss of principal amount invested. [LOGO OMITTED] PUTNAM INVESTMENTS The Putnam Funds One Post Office Square Boston, Massachusetts 02109 - -------------------- Bulk Rate U.S. Postage PAID Putnam Investments - -------------------- 33892-005/882/907 6/97 PUTNAM INVESTMENTS [SCALE LOGO OMITTED] - ------------------------------------------------------------------------ Putnam Global Growth Fund Supplement to Semiannual Report dated 4/30/97 The following information has been prepared to provide class Y shareholders with a performance overview specific to their holdings. Class Y shares are offered exclusively to defined contribution plans investing $250 million or more in one or more of Putnam's funds or private accounts. Performance of class Y shares, which incur neither a front-end load, distribution fee, nor contingent deferred sales charge, will differ from performance of class A, B, and M shares, which are discussed more extensively in the semiannual report. SEMIANNUAL RESULTS AT A GLANCE - ------------------------------------------------------------------------ Total return: NAV Six months ended 4/30/97 9.17% One year ended 4/30/97 12.68% Life of class (since 6/15/94) 42.37% Annual average 13.05% - ------------------------------------------------------------------------ Share value: NAV 10/31/96 $11.24 4/30/97 $11.38 - ------------------------------------------------------------------------ Distributions (number) 1 Income $0.301 Capital gains Long-term $0.249 Short-term $0.296 Total $0.846 - ------------------------------------------------------------------------ Please note that past performance does not indicate future results. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. See full report for information on comparative benchmarks. If you have questions, please consult your fund prospectus or call Putnam toll free at 1-800-752-9894. -----END PRIVACY-ENHANCED MESSAGE-----