-----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, SWp9CU9UCgfaTdEwGtNq74T0v3xfOdA72JrkPPzvXzUNmv0snKYJb6ZMuoCpVnlQ OXCsgtys+aiF1IiQ1LMRrA== 0000928816-96-000096.txt : 19960405 0000928816-96-000096.hdr.sgml : 19960405 ACCESSION NUMBER: 0000928816-96-000096 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960131 FILED AS OF DATE: 19960404 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PUTNAM VOYAGER FUND CENTRAL INDEX KEY: 0000081280 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 046187125 STATE OF INCORPORATION: MA FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-01682 FILM NUMBER: 96544453 BUSINESS ADDRESS: STREET 1: ONE POST OFFICE SQ CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 6172921000 FORMER COMPANY: FORMER CONFORMED NAME: PUTNAM VOYAGER FUND INC /PRED/ DATE OF NAME CHANGE: 19821109 N-30D 1 PUTNAM VOYAGER FUND Putnam Voyager Fund SEMIANNUAL REPORT January 31, 1996 [Putnam Scales Logo] BOSTON * LONDON * TOKYO Fund highlights * Lipper Analytical Services ranked Putnam Voyager Fund's class A shares #3 out of 50 (top 6%) of all capital appreciation funds tracked for 10-year performance, as of January 31, 1996. * Morningstar, an independent rating agency, gave the fund's class A shares its highest ranking of five stars for overall performance as of January 31, 1996. Only 10% of 1,412 equity funds rated received five stars. CONTENTS 4 Report from Putnam Management 8 Fund performance summary 13 Portfolio holdings 23 Financial statements Lipper rankings are based on total return performance, vary over time, and do not reflect the effects of sales charges. The fund's class A shares ranked 28 out of 153 (top 19%), 11 out of 83 (top 14%), and 3 out of 50 (top 6%) for 1-, 5-, and 10-year performance, respectively, as of 1/31/96. Performance of other share classes will vary. Past performance is not indicative of future results. Morningstar, an independent rating organization, rates a fund relative to funds with similar investment objectives, based on the fund's 3-, 5-, and 10-year performance, adjusted for risk factors and sales charges. Ratings are updated monthly. 10% of funds receive 5 stars, 22.5% receive 4 stars, and 35% receive 3 stars. For the 3-, 5-, and 10-year periods ended 1/31/96, there were 1,412, 948, and 510 funds in the equity fund category, and the fund's class A shares received 4 stars, 4 stars and 5 stars for each respective period. The fund's class B shares received 4 stars for the 3-year period ended 1/31/96. Performance of other share classes will vary. Past performance is not indicative of future results. [GRAPHIC OMITTED: PHOTO OF GEORGE PUTNAM] (copyright) Karsh, Ottawa From the Chairman Dear Shareholder: The first half of Putnam Voyager Fund's current fiscal year fell squarely within one of the most exuberant stock market environments in recent memory. The extent of the rise in equities, along with management's adept positioning, is clearly reflected in your fund's performance during the six months ended January 31, 1996. Quite naturally, we are pleased with the results. However, as recent events have demonstrated, favorable conditions like these do not last indefinitely without disruption. It would be a realistic expectation to see some moderation in the pace of the advance and further corrections from time to time during the second half of fiscal 1996. Putnam Management believes the prospect of a slower economy still has the potential to cool equity investors' ardor a bit. As a result, the market may be in for some additional near-term volatility. Nevertheless, your fund's management team believes that stocks, on balance, will continue their upward course in 1996, though at a more subdued pace than they enjoyed in 1995. Respectfully yours, /s/George Putnam Chairman of the Trustees March 20, 1996 Report from the Fund Managers Roland W. Gillis, lead manager Charles H. Swanberg Robert R. Beck Putnam Voyager Fund added another impressive semiannual period to its long-term record. Stocks across the fund's three portfolio segments -- foundation growth, premier growth, and opportunity -- thrived over the six months ended January 31, 1996, sparked by declining interest rates, low inflation, and rising corporate earnings. We are optimistic that market conditions will remain conducive to growth in the months ahead, while some near-term volatility remains likely. Over the semiannual period, your fund's class A, class B, and class M shares returned 13.07%, 12.74%, and 12.90%, respectively, at net asset value (NAV). At public offering price (POP), class A, class B, and class M shares gained 6.56%, 7.74%, and 8.96%, respectively, over the same period. Over the long term -- including both 5- and 10-year periods -- your fund has consistently outperformed the Standard & Poor's 500(registered trademark) Index, as the chart on page 8 shows. * STRONG PERFORMANCE AMONG DIVERSE TECHNOLOGY HOLDINGS Over the semiannual period, the foundation growth segment, composing nearly 36% of the overall portfolio, witnessed particularly robust performance. This portion of the portfolio encompasses stocks of small to midsize companies selected for exceptional earnings growth potential. Technology companies continued to drive foundation growth returns over the period; computer networking holdings such as Cisco Systems and Stratacom were particularly dynamic. Also noteworthy were Internet-related companies, including America Online, NETCOM, and the high-flying Netscape (while this stock, along with others discussed in this report, was 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 well vary in future). While we believe the long-term outlook for these and other technology stocks to be strong, we do anticipate ongoing bursts of volatility over the near term. Prices of telecommunications equipment stocks also moved upward throughout the period and may be poised for further gains. Indeed, the recently passed bill deregulating telecommunications may well provide an important stimulus for the industry in the coming months. Companies currently in the portfolio providing telecommunications equipment for both regional Bells and long-distance telephone carriers include Ascend and Cascade. We have also seen encouraging performance from companies throughout the health-care sector. Stocks of medical devices companies including Medtronic, Boston Scientific, and the dynamic Thermo Cardiosystems have moved higher as they continue to ship important devices. We have added to the fund's current biotechnology holdings, including Gilead Sciences and Neurogen. These and other biotechnology companies have products in the pipeline that we believe possess excellent sales potential. Finally, the fund also benefited from stocks of companies in the health-care services area, including long-term care provider Health Care and Retirement Corp. and Healthsource, Inc., an HMO. * PREMIER GROWTH SEGMENT SIMILARLY BUOYANT The premier growth segment currently accounts for some 32% of the overall portfolio. These stocks are similar to foundation growth holdings but have a larger average size (the total value of the outstanding stock of companies in this segment must exceed $500 million). As with the rest of the market, the premier growth section saw excellent performance from technology and medical device stocks, including Maxim Integrated Products and Linear Technology. U.S. Robotics, a supplier of modems, also thrived. [GRAPHIC OMITTED: horizontal bar chart TOP INDUSTRY SECTORS* showing: Computer software 8.0% Pharmaceuticals and biotechnology 5.5% Business services 5.0% Health-car services 4.5% Medical devices and supplies 4.0% Footnote reads: *Based on net assets as of 1/31/96. Holdings and top industry sectors will vary over time.] In addition to technology, strong performers were found across the range of premier growth holdings. Several financial companies did exceptionally well, including the Federal National Mortgage Association and the Federal Home Loan Mortgage Corp., two government-chartered, stockholder-owned lenders. In retail, a generally weak sector, shares of Gucci, which the fund bought in the firm's initial public offering, moved substantially higher. Sunglass Hut, another new issue, and Luxottica, a luxury eyeglass company that just purchased Lenscrafters, were similarly strong. Elsewhere, we saw positive movement from pharmaceutical companies including Pfizer and Smithkline Beecham; we originally added these stocks as a defensive move in the slowing economy. Input/Output is another promising holding. The company supplies the oil-exploration industry with detailed sonar maps of subsurface oil pools. Finally, we steadily increased the portfolio's weighting in foreign stocks, which now make up some 14% of the premier growth segment (7.5% of the fund, overall). International companies include Baan, a Dutch software firm; Rentokil, a British diversified business services firm; Next, a British retailer; and Roche, the major Swiss pharmaceutical concern. We believe that after the U.S. market's dramatic rise in 1995, many foreign markets appear relatively undervalued, particularly in those companies with global market share. *OPPORTUNITY HOLDINGS CONSIDERED LIKELY TO HOLD VALUE The opportunity segment currently encompasses 31% of your fund's overall portfolio. Opportunity stocks are those of larger companies that are making positive changes, including new-product development, improving productivity, and new management. One example in the portfolio is Polaroid Corporation, where we believe a new management team will be able to take advantage of the company's real earnings power. We also are upbeat about Kimberly-Clark since its merger with Scott Paper. [GRAPHIC OMITTED: TOP 10 HOLDINGS (1/31/96) HFS, Inc. Lodging Cabletron Systems, Inc. Computer networking systems Cisco Systems, Inc. Computer networking systems Thermo Electron Corp. Energy and health-related machinery Computer Associates Intl. Software designer MBNA Corp. Financial services America Online, Inc. On-line service HBO & Co. Hospital information services Parametric Technology Corp. Mechanical software design Citicorp Financial services Footnote reads: These holdings represent 12.0% of the fund's net assets. Portfolio holdings will vary over time.] Digital Equipment, we believe, represents another strong turnaround prospect. It also has fresh management, and we believe its new Alpha chip has excellent potential. Given the positive reception of its strong client/server hardware, Digital may have much room to grow -- perhaps more so than certain of its competitors. Elsewhere, we have moved into several financial companies, which we believe will be bolstered by the interest-rate picture, including American International Group, BankAmerica Corp., and American Express. * OUTLOOK: GENERALLY POSITIVE, WITH SOME VOLATILITY We believe the outlook for growth stocks is positive for the months ahead. Significantly, even after the persistent market run-up, we are still able to identify successfully a large number of companies that are growing earnings much faster than those in the overall market -- and may continue to do so whatever the prevailing economic environment . 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 1/31/96, there is no guarantee the fund will continue to hold these securities in the future. Smaller and midsize companies in the fund's portfolio may fluctuate in price more than larger companies. Performance summary Performance should always be considered in light of a fund's investment strategy. Putnam Voyager Fund is designed for investors aggressively seeking capital appreciation through common stocks. This section provides, at a glance, information about your fund's performance. Total return shows how the value of the fund's shares changed over time, assuming you held the shares through the entire period and reinvested all distributions back into the fund.
TOTAL RETURN FOR PERIODS ENDED 1/31/96 Class A Class B Class M Inception date (4/1/69) (4/27/92) (12/1/94) NAV POP NAV CDSC NAV POP - ------------------------------------------------------------------------------------ 6 months 13.07% 6.56% 12.74% 7.74% 12.90% 8.96% - ------------------------------------------------------------------------------------ 1 year 41.17 33.10 40.27 35.27 40.59 35.65 - ------------------------------------------------------------------------------------ 5 years 157.22 142.30 -- -- -- -- Annual average 20.80 19.36 -- -- -- -- - ------------------------------------------------------------------------------------ 10 years 433.02 402.32 -- -- -- -- Annual average 18.22 17.52 -- -- -- -- - ------------------------------------------------------------------------------------ Life of class -- -- 93.24 90.24 43.86 38.80 Annual average -- -- 19.15 18.66 36.46 32.34 - ------------------------------------------------------------------------------------
COMPARATIVE INDEX RETURNS FOR PERIODS ENDED 1/31/96 Standard & Poor's Consumer 500 Index Price Index - ------------------------------------------------------------------------ 6 months 14.49% 1.25% - ------------------------------------------------------------------------ 1 year 38.56 2.73 - ------------------------------------------------------------------------ 5 years 113.15 14.71 Annual average 16.34 2.78 - ------------------------------------------------------------------------ 10 years 310.40 40.88 Annual average 15.16 3.49 - ------------------------------------------------------------------------ Life of class B 69.99 10.68 Annual average 15.16 2.74 - ------------------------------------------------------------------------ Life of class M 44.72 3.14 Annual average 37.15 2.68 - ------------------------------------------------------------------------ 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 net asset 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%. TOTAL RETURN FOR PERIODS ENDED 12/31/95 (most recent calendar quarter) Class A Class B Class M NAV POP NAV CDSC NAV POP - ------------------------------------------------------------------- 6 months 19.69% 12.83% 19.25% 14.25% 19.36% 15.16% - ------------------------------------------------------------------- 1 year 40.16 32.13 39.07 34.07 39.46 34.55 - ------------------------------------------------------------------- 5 years 174.89 159.13 -- -- -- -- Annual average 22.41 20.98 -- -- -- -- - ------------------------------------------------------------------- 10 years 435.08 404.38 -- -- -- -- Annual average 18.26 17.56 -- -- -- -- - ------------------------------------------------------------------- Life of class -- -- 91.43 88.43 42.45 37.44 Annual average -- -- 19.30 18.79 38.77 34.24 - ------------------------------------------------------------------- PRICE AND DISTRIBUTION INFORMATION 6 months ended 1/31/96 Class A Class B Class M - ---------------------------------------------------------------------------- Distributions - ---------------------------------------------------------------------------- Number 1 1 1 - ---------------------------------------------------------------------------- Capital gains - ---------------------------------------------------------------------------- Long-term $0.64 $0.64 $0.64 - ---------------------------------------------------------------------------- Short-term 0.22 0.22 0.22 - ---------------------------------------------------------------------------- Total $0.86 $0.86 $0.86 - ---------------------------------------------------------------------------- Share value: NAV POP NAV NAV POP - ---------------------------------------------------------------------------- 7/31/95 $14.42 $15.30 $14.01 $14.37 $14.89 - ---------------------------------------------------------------------------- 1/31/96 15.40 16.34 14.89 15.32 15.88 - ---------------------------------------------------------------------------- TERMS AND DEFINITIONS Class A shares are generally subject to an initial sales charge. Class B shares may be subject to a sales charge upon redemption. Class M shares have a lower initial sales charge and a higher 12b-1 fee than class A shares and no sales charge on redemption. Net asset value (NAV) is the value of all your fund's assets, minus any liabilities, divided by the number of outstanding shares, not including any initial or contingent deferred sales charge. Public offering price (POP) is the price of a mutual fund share plus the maximum sales charge levied at the time of purchase. POP performance figures shown here assume the maximum 5.75% sales charge for class A shares and 3.50% for class M shares. Contingent deferred sales charge (CDSC) is a charge applied at the time of the redemption of class B shares and assumes redemption at the end of the period. Your fund's CDSC declines from a 5% maximum during the first year to 1% during the sixth year. After the sixth year, the CDSC no longer applies. COMPARATIVE BENCHMARKS Standard & Poor's 500 Index is an unmanaged list of common stocks that is frequently used as a general measure of stock market performance. The index assumes reinvestment of all distributions and does not take into account brokerage commissions or other costs. The fund's portfolio contains securities that do not match those in the index. You cannot invest in an index. Consumer Price Index (CPI) is a commonly used measure of inflation; it does not represent an investment return. A Putnam perspective on risk and reward You've probably been told how important it is to understand the relationship between an investment's potential rewards and its accompanying risks. Given the cautionary nature of such instructions, it may take most investors a while to realize that risk has a positive side . Every risk signals a potential reward. Selecting only those investments that offer the greatest degree of security generally leads to only modest rewards. Furthermore, even insured or guaranteed investments may be subject to changes in their rates of return or, in some cases, in their principal values. Experienced investors know that no investment is truly risk free and are therefore willing to take on some measure of risk in order to increase their potential gains. The greater the risk, the greater the potential reward. Accepting an appropriate level of investment risk can give you a better chance of outpacing inflation over time and seeking to maximize your investment's return. How much risk? Your financial advisor's feedback and your time horizon can make all the difference in determining how much risk is compatible with your investment goals and your peace of mind. FITTING YOUR FUND SELECTION TO YOUR RISK TOLERANCE How do you find the right balance between investment risks and their potential rewards? It's helpful to understand the types of risks that can apply to different types of investments, and to look at your own portfolio with this perspective. For short-time goals, your first priority may be managing market risk. Longer-term investors may be more concerned with inflation risk. And all income-oriented investors should consider interest-rate, credit, and prepayment risks carefully. Within each of Putnam's four investment categories, you can select funds with differing levels of risk and reward potential to customize your portfolio. This list covers only the most general types of risks; however, each investment will also have its own specific risks. You will find a more detailed discussion of these risk consideration in each fund's prospectus. * A RUNDOWN OF RISK TYPES MARKET RISK Most important for stock funds, but relevant to all funds, this is a measure of how sensitive a fund's holdings are to changes in general market conditions. Remember, though, that securities that lose value quickly in market declines may also show the strongest gains in more favorable environments. INTEREST-RATE RISK Since bond prices fall as interest rates rise, this type of risk is a particular concern for fixed-income inves- tors. However, interest-rate increases can also have a substantial negative effect on the stock market. INFLATION RISK If your investments cannot keep pace with inflation, your money will begin to lose its purchasing power. Stock investments are generally considered among the best ways of addressing inflation risk over the long term. CREDIT AND PREPAYMENT RISK Credit risk is the concern that the security's issuer will not be able to meet its payment, while prepayment risk involves the premature payoff of a loan, with a resulting loss of interest income. Professional management and in-depth research are invaluable in managing both these risks. LIQUIDITY RISK Not all investments can be readily converted into cash at their perceived market values. Liquidity risk can affect the price of securities held in the fund's portfolio and, thus, the fund's share prices.
Portfolio of investments owned January 31, 1996 (Unaudited) COMMON STOCKS (96.3%)* NUMBER OF SHARES VALUE Advertising (0.4%) - ------------------------------------------------------------------------------------------------ 853,150 Omnicom Group $ 32,952,919 Aerospace (1.1%) - ------------------------------------------------------------------------------------------------ 350,000 Boeing Co. 27,168,750 1,467,030 Flight Safety International, Inc. 73,168,121 ------------------ 100,336,871 Apparel (1.0%) - ------------------------------------------------------------------------------------------------ 1,646,450 Gucci Group + 66,887,031 699,600 Tommy Hilfiger Corp. + 26,584,800 ------------------ 93,471,831 Automotive (0.7%) - ------------------------------------------------------------------------------------------------ 950,000 Echlin, Inc. 35,031,250 750,000 Snap-On Inc. 32,906,250 ------------------ 67,937,500 Banks (2.5%) - ------------------------------------------------------------------------------------------------ 500,000 Bank of Boston Corp. 22,875,000 1,000,000 BankAmerica Corp. 67,375,000 1,300,000 Citicorp 96,037,500 680,000 NationsBank Corp. 47,515,000 ------------------ 233,802,500 Broadcasting (2.8%) - ------------------------------------------------------------------------------------------------ 592,786 Capital Cities/ABC, Inc. 76,247,099 266,400 Central European Media Enterprises Ltd. + 6,393,600 807,470 Clear Channel Communications, Inc. + 37,143,620 248,600 Evergreen Media Corp. Class A + 7,613,375 1,524,190 Infinity Broadcasting Corp. Class A + 60,586,553 416,620 LIN Television Corp. + 12,915,220 1,182,150 Renaissance Communications Corp. + 23,347,463 72,000 SFX Broadcasting, Inc. Class A, + 1,854,000 204,200 Sinclair Broadcast Group, Inc. Class A, + 3,675,600 1,849,600 Westwood One, Inc. + 29,709,200 ------------------ 259,485,730 Business Services (4.9%) - ------------------------------------------------------------------------------------------------ 1,173,790 Airgas, Inc. + 40,935,926 993,000 Alco Standard Corp. 38,975,250 17,500 Corestaff, Inc. + 656,250 2,570,600 Corporate Express, Inc. + 67,799,575 1,583,084 Danka Business Systems ADR (United Kingdom) 58,376,223 1,150,000 Dow Jones & Co., Inc. 44,993,750 231,200 Interim Services Inc. + 8,612,200 1,171,034 Interpublic Group of Cos., Inc. 49,768,945 788,200 Manpower, Inc. 21,182,875 8,571,480 Rentokil Group Ord. PLC (United Kingdom) 45,130,899 1,247,562 Robert Half International, Inc. + 52,553,549 ------------------ 462,660,442 Cable Television (1.9%) - ------------------------------------------------------------------------------------------------ 226,970 Cablevision Systems Corp. Class A + 12,767,063 1,451,900 Century Communications Corp. Class A + 11,070,738 765,925 Comcast Corp. Class A 15,414,241 799,370 TCA Cable TV, Inc. 24,680,549 1,307,684 Tele-Comm Liberty Media Group, Inc. Class A + 35,797,850 3,893,235 Tele-Communications Class A + 82,244,589 ------------------ 181,975,030 Chemicals (1.9%) - ------------------------------------------------------------------------------------------------ 146,900 FMC Corp. + 10,705,338 370,000 Great Lakes Chemical Corp. 27,611,250 1,150,000 Praxair, Inc. 39,100,000 1,200,000 Raychem Corp. 80,250,000 600,000 Witco Chemical Corp. 19,050,000 ------------------ 176,716,588 Computer Equipment (0.5%) - ------------------------------------------------------------------------------------------------ 500,000 Digital Equipment Corp. + 36,187,500 276,500 PRI Automation, Inc. + 7,880,250 ------------------ 44,067,750 Computer Services (3.2%) - ------------------------------------------------------------------------------------------------ 2,283,560 America Online, Inc. + 102,189,310 209,600 CBT Group PLC ADR (Ireland)+ 11,370,800 1,206,590 First Data Corp. 85,366,243 223,600 NETCOM On-Line Communication Services, Inc. + 6,819,800 1,308,838 Paychex, Inc. 67,895,971 550,200 PsiNet, Inc. + 7,290,150 171,200 Secure Computing Corp. + 6,655,400 225,400 Tivoli Systems, Inc. + 10,600,844 ------------------ 298,188,518 Computer Software (8.0%) - ------------------------------------------------------------------------------------------------ 690,900 Baan Co. (Netherlands)+ 29,967,788 157,500 Business Objects S.A., ADR (France)+ 7,245,000 11,700 Clarify, Inc. + 345,150 1,588,239 Computer Associates Intl., Inc. 108,595,842 968,500 Discreet Logic, Inc. (Canada)+ 25,423,125 1,524,083 Electronic Arts, Inc. + 36,577,992 795,400 Electronics for Imaging, Inc. + 28,833,250 394,200 Fulcrum Technologies, Inc. + 12,121,650 315,500 GT Interactive Software Corp. + 3,312,750 630,300 General Motors Corp. Class E 34,981,650 547,400 Geoworks + 13,548,150 2,361,520 Informix Corp. + 78,815,730 9,800 Inso Corporation + 377,300 263,100 Intuit, Inc. + 16,213,538 99,200 Legato Systems, Inc. + 3,174,400 402,200 Macromedia, Inc. + 16,088,000 319,450 Mercury Interactive Corp. + 6,628,588 14,500 Metatools, Inc. + 317,188 755,481 Microsoft Corp. + 69,881,993 233,085 Netscape Communications Corp. + 38,284,211 241,400 Novadigm, Inc. + 6,216,050 266,268 Objective Systems Integrators, Inc. + 10,650,720 1,484,200 Parametric Technology Corp. + 96,101,950 790,560 PeopleSoft, Inc. + 37,551,600 382,000 Platinum Software Corp. + 1,862,250 63,600 Project Software & Development, Inc. + 2,257,800 160,600 Scopus Technology, Inc. + 3,693,800 178,100 Security Dynamics Technologies, Inc. + 10,196,225 410,000 Sierra On-Line, Inc. + 10,198,750 669,300 Softkey International, Inc. + 9,286,538 160,100 Spyglass, Inc. + 6,243,900 13,200 Sync Research Inc. + 372,900 685,200 Synopsys, Inc. + 20,042,100 224,500 Vantive Corp. + 5,275,750 ------------------ 750,683,628 Consumer Products (0.8%) - ------------------------------------------------------------------------------------------------ 850,000 Kimberly-Clark Corp. 68,531,250 200,000 Lowe's Cos., Inc. 6,225,000 ------------------ 74,756,250 Consumer Non Durables (0.4%) - ------------------------------------------------------------------------------------------------ 1,200,000 Sara Lee Corp. 40,500,000 Consumer Services (0.8%) - ------------------------------------------------------------------------------------------------ 1,675,610 CUC International, Inc. + 61,788,119 490,000 Loewen Group, Inc. 13,781,250 ------------------ 75,569,369 Cosmetics (0.1%) - ------------------------------------------------------------------------------------------------ 435,800 Thermolase Corp. + 13,019,525 Electronics and Electrical Equipment (1.8%) - ------------------------------------------------------------------------------------------------ 1,800,000 ADT Ltd. + 26,100,000 572,675 Baldor Electric Co. 11,739,838 155,600 Franklin Electronic Publishers, Inc. + 4,415,150 500,000 General Electric Co. 38,375,000 3,151,800 Input/Output, Inc. + 76,431,150 307,200 Lemout & Hauspie Speech Products N.V. (Belgium) + 8,524,800 ------------------ 165,585,938 Energy-Related (1.2%) - ------------------------------------------------------------------------------------------------ 2,007,976 Thermo Electron Corp. + 109,434,675 Entertainment (0.6%) - ------------------------------------------------------------------------------------------------ 684,100 Disney (Walt) Productions, Inc. 43,953,425 251,600 Scientific Games Holdings Corp. + 9,875,300 ------------------ 53,828,725 Environmental Control (0.8%) - ------------------------------------------------------------------------------------------------ 490,200 Memtec Ltd. ADR (Australia) 10,171,650 128,200 Molten Metal Technology Inc. + 4,839,550 2,037,300 WMX Technologies, Inc. 60,864,338 ------------------ 75,875,538 Finance (3.1%) - ------------------------------------------------------------------------------------------------ 1,618,023 American Express Co. 74,429,058 751,690 Federal Home Loan Mortgage. Corp. 64,363,456 2,763,148 Federal National Mortgage Association 95,328,606 649,950 Financial Federal Corp. + 10,724,175 343,400 Morgan (J.P.) & Co., Inc. 27,901,250 293,800 Student Loan Marketing Assn. 21,631,025 ------------------ 294,377,570 Financial Services (1.9%) - ------------------------------------------------------------------------------------------------ 2,590,130 MBNA Corp. 105,547,798 2,150,095 Mercury Finance Co. 27,413,711 1,211,800 TCF Financial Corp. 39,837,925 ------------------ 172,799,434 Food and Beverages (2.3%) - ------------------------------------------------------------------------------------------------ 300,000 Anheuser-Busch Cos., Inc. 20,850,000 2,000,000 Archer Daniels Midland Co. 38,000,000 971,874 IBP, Inc. 25,876,145 450,000 PepsiCo, Inc. 26,831,250 2,150,000 Seagram Co. 78,206,250 900,000 Whitman Corporation 20,475,000 ------------------ 210,238,645 Gaming (0.7%) - ------------------------------------------------------------------------------------------------ 1,344,500 Circus Circus Enterprises, Inc. + 42,855,938 350,000 Mirage Resorts, Inc. + 13,650,000 630,900 Rio Hotel & Casino, Inc. + 8,201,700 ------------------ 64,707,638 Gas Utilities (0.5%) - ------------------------------------------------------------------------------------------------ 1,050,000 Columbia Gas System, Inc. + 45,543,750 HMOs (1.4%) - ------------------------------------------------------------------------------------------------ 2,252,500 Healthsource, Inc. + 75,458,750 432,600 Pacificare Health Systems, Inc. Class B + 39,907,350 492,700 Sierra Health Services + 16,751,800 ------------------ 132,117,900 Health Care Information Systems (1.0%) - ------------------------------------------------------------------------------------------------ 1,151,660 HBO & Co. 96,739,440 Health Care Services (4.5%) - ------------------------------------------------------------------------------------------------ 186,800 ABR Information Services, Inc. + 8,966,400 100,000 Access Health, Inc. + 4,975,000 988,820 Apria Healthcare Group, Inc. + 25,956,525 1,615,931 Columbia/HCA Healthcare Corp. 89,886,162 545,400 Health Care & Retirement Corp. + 19,975,275 2,280,348 Health Management Assoc., Inc. + 68,695,484 1,579,100 Healthsouth Rehabilitation Corp. + 50,925,975 1,241,200 Lincare Holdings, Inc. + 32,891,800 144,000 Medaphis Corp. + 5,760,000 486,500 Oxford Health Plans Inc. 33,568,500 387,786 Renal Treatment Centers, Inc. + 17,741,210 280,800 Rotech Medical Corp. + 8,459,100 1,374,100 Vencor, Inc. + 52,387,563 ------------------ 420,188,994 Home Building (0.7%) - ------------------------------------------------------------------------------------------------ 3,104,300 Clayton Homes, Inc. 62,086,000 Hospital Management (0.1%) - ------------------------------------------------------------------------------------------------ 211,755 Horizon/CMS Healthcare Corp. + 5,796,793 382,000 Owen Healthcare, Inc. + 7,926,500 ------------------ 13,723,293 Household Products (1.2%) - ------------------------------------------------------------------------------------------------ 1,592,250 Blyth Industries, Inc. + 44,583,000 1,300,000 Premark International, Inc. 67,275,000 ------------------ 111,858,000 Insurance (2.1%) - ------------------------------------------------------------------------------------------------ 1,350,000 American General Corp. 50,962,500 250,000 American International Group, Inc. 24,218,750 1,300,892 Amerin Corp. + 33,660,581 475,110 General Re Corp. 72,691,830 1,000,000 USF&G Corp. 16,000,000 ------------------ 197,533,661 Lodging (2.5%) - ------------------------------------------------------------------------------------------------ 73,100 Bristol Hotel Co. + 2,046,800 355,000 Doubletree Corp. + 8,653,125 2,035,080 HFS, Inc. + 168,911,640 427,350 La Quinta Inns, Inc. 11,431,613 1,508,500 Renaissance Hotel Group N.V. (Hong Kong)+ 37,901,063 ------------------ 228,944,241 Medical Supplies and Devices (4.0%) - ------------------------------------------------------------------------------------------------ 1,539,265 Boston Scientific Corp. + 78,887,331 250,900 Endosonics Corp. + 3,449,875 175,000 Johnson & Johnson 16,800,000 380,900 Lifecore Biomedical, Inc. + 6,808,588 57,400 Medisense Inc. + 1,528,275 1,062,420 Medtronic, Inc. 60,690,743 782,491 St. Jude Medical Inc. + 34,527,415 877,800 Sola International, Inc. + 24,249,225 1,199,252 Stryker Corp. 67,008,206 598,300 Thermo Cardiosystems, Inc. + 44,274,200 1,250,000 U.S. Surgical Corp. 29,531,250 204,600 Uromed Corp. + 2,736,525 ------------------ 370,491,633 Metals and Mining (0.3%) - ------------------------------------------------------------------------------------------------ 900,000 Freeport-McMoRan Copper & Gold Co., Inc. Class A 26,100,000 Networking Equipment (3.6%) - ------------------------------------------------------------------------------------------------ 716,700 Ascend Communications, Inc. + 27,861,713 1,553,628 Cabletron Systems, Inc. + 119,823,560 425,900 Cascade Communications Corp. + 33,326,675 1,385,350 Cisco Systems, Inc. + 115,330,388 327,500 Madge Networks N.V. (Netherlands)+ 12,936,250 296,100 Network Express, Inc. + 1,147,388 113,100 Omnipoint Corp. + 2,318,550 396,600 Shiva Corp. + 28,456,050 ------------------ 341,200,574 Nursing Homes (0.2%) - ------------------------------------------------------------------------------------------------ 138,300 American Medical Response + 4,287,300 306,100 Genesis Health Ventures, Inc. + 12,894,463 ------------------ 17,181,763 Office Equipment (0.5%) - ------------------------------------------------------------------------------------------------ 913,434 Viking Office Products, Inc. + 46,585,134 Oil and Gas (1.9%) - ------------------------------------------------------------------------------------------------ 250,000 British Petroleum PLC ADR (United Kingdom) 24,406,250 147,000 Exxon Corp. 11,796,750 324,600 Halliburton Co. 16,757,475 107,800 Mobil Corp. 11,938,850 600,000 Production Operators Corp. 20,475,000 176,400 Royal Dutch Petroleum Co. PLC ADR (Netherlands) 24,519,600 400,000 Schlumberger Ltd. 28,050,000 1,100,000 Total Corp. ADR (France) 37,950,000 ------------------ 175,893,925 Paper and Forest Products (0.1%) - ------------------------------------------------------------------------------------------------ 254,800 Weyerhaeuser Co. 11,752,650 Pharmaceuticals and Biotechnology (5.5%) - ------------------------------------------------------------------------------------------------ 214,449 Abbott Laboratories 9,060,470 706,400 Amgen, Inc. + 42,472,300 1,743,519 Astra AB (Sweden)+ 70,938,153 331,400 Biochem Pharmaceutical, Inc. + 14,581,600 400,128 Chiron Corp. + 46,014,720 567,800 CytoTherapeutics, Inc. + 9,652,600 241,420 Genzyme Corp. + 18,317,743 759,700 Gilead Sciences, Inc. + 27,159,275 342,700 Immulogic Pharmaceutical Corp. + 6,725,488 600,000 Lilly (Eli) & Co. 34,500,000 200,000 Mallinckrodt Group Inc. 8,025,000 347,000 Martek Biosciences Corp. + 12,145,000 561,700 Neurogen Corp. + 16,991,425 490,600 Pfizer, Inc. 33,728,750 1,800,000 Pharmacia & Upjohn, Inc. 75,375,000 5,469 Roche Holdings AG (Switzerland) 39,930,235 800,000 Smithkline Beecham PLC ADR (United Kingdom) 45,000,000 168,900 Vical, Inc. + 2,871,300 ------------------ 513,489,059 Photography (1.6%) - ------------------------------------------------------------------------------------------------ 1,000,000 Eastman Kodak Co. 73,375,000 1,631,600 Polaroid Corp. 73,218,050 ------------------ 146,593,050 Publishing (1.2%) - ------------------------------------------------------------------------------------------------ 540,800 Harcourt General, Inc. 21,091,200 250,000 McGraw-Hill, Inc. 22,250,000 67,400 Mecklermedia Corp. + 878,306 400,000 Tribune Co. 25,050,000 474,167 Wolters Kluwer N.V. (Netherlands) 46,450,751 ------------------ 115,720,257 Railroads (0.4%) - ------------------------------------------------------------------------------------------------ 450,000 Burlington Northern Santa Fe Corp. 36,843,750 Restaurants (2.1%) - ------------------------------------------------------------------------------------------------ 916,600 Apple South, Inc. 16,155,075 1,277,700 Applebee's International, Inc. 23,797,163 2,071,900 Boston Chicken, Inc. + 70,444,600 1,804,225 J.D. Wetherspoon PLC (United Kingdom) 20,418,847 623,300 Landry's Seafood Restaurants, Inc. + 9,271,588 628,300 Lone Star Steakhouse & Saloon + 20,498,288 1,068,065 Outback Steakhouse, Inc. + 32,442,474 ------------------ 193,028,035 Retail (4.2%) - ------------------------------------------------------------------------------------------------ 784,400 Bed Bath & Beyond, Inc. + 31,130,875 464,381 Boise Cascade Office Products 23,915,622 250,000 Dayton Hudson Corp. 18,687,500 1,500,000 Federated Department Stores + 40,500,000 1,021,800 General Nutrition Companies, Inc. + 22,351,875 1,352,550 Heilig-Meyers Co. 20,964,525 468,000 Hollywood Entertainment Corp. + 3,685,500 650,748 Home Depot, Inc. 29,934,408 365,000 MSC Industrial Direct Co., Inc. Class A + 9,398,750 419,600 Neostar Retail Group, Inc. + 2,202,900 6,814,600 Next PLC (United Kingdom) 47,222,043 1,254,745 Office Depot, Inc. + 23,683,312 1,518,000 Officemax, Inc. + 34,914,000 1,600,000 Revco D.S., Inc. + 45,000,000 721,900 Staples, Inc. + 17,776,788 592,459 Sunglass Hut Intl. + 16,477,766 ------------------ 387,845,864 Semiconductors (3.8%) - ------------------------------------------------------------------------------------------------ 471,700 Altera Corp. + 31,073,238 1,139,400 Analog Devices Inc. + 25,636,500 723,100 Atmel Corp. + 20,608,350 536,300 Credence Systems Corp. + 13,206,388 140,700 Cyberoptics Corp. + 4,502,400 246,900 Integrated Process Equipment Corp. + 5,431,800 782,300 KLA Instruments Corp. + 23,077,850 1,858,896 Linear Technology Corp. 82,023,786 2,275,210 Maxim Integrated Products Inc. + 80,769,955 900,000 National Semiconductor Corp. + 15,525,000 652,100 Silicon Valley Group, Inc. + 17,036,113 1,020,300 Xilinx, Inc. + 39,409,088 ------------------ 358,300,468 Specialty Consumer Products (1.4%) - ------------------------------------------------------------------------------------------------ 1,491,411 Department 56, Inc. + 59,097,161 839,491 Fastenal Co. 28,437,758 151,700 Gemstar International Group Ltd. (Hong Kong)+ 4,968,175 589,020 Luxottica Group S.P.A. ADR (Italy) 40,200,615 ------------------ 132,703,709 Steel (0.4%) - ------------------------------------------------------------------------------------------------ 624,041 Nucor Corp. 36,272,383 Supermarkets (0.1%) - ------------------------------------------------------------------------------------------------ 12,875 Carrefour Supermarche (France) 8,279,305 Telecommunication Equipment (2.4%) - ------------------------------------------------------------------------------------------------ 969,900 Adtran, Inc. + 26,672,250 515,800 Glenayre Technologies, Inc. + 20,632,000 533,900 P-Com, Inc. + 7,474,600 303,300 Pairgain Technologies, Inc. + 14,330,925 263,200 Premisys Communications, Inc. + 11,580,800 1,179,300 Stratacom, Inc. + 88,447,500 549,800 U.S. Robotics Corp. + 48,519,850 134,900 VideoServer, Inc. + 3,237,600 ------------------ 220,895,525 Telephone Services (2.8%) - ------------------------------------------------------------------------------------------------ 496,000 Colonial Data Technologies Corp. + 8,804,000 1,000,000 GTE Corp. 46,000,000 2,450,000 MCI Communications Corp. 70,131,250 750,000 SBC Communications, Inc. 42,468,750 1,650,000 Sprint Corp. 71,156,250 666,800 WorldCom, Inc. + 24,421,550 ------------------ 262,981,800 Textiles (0.2%) - ------------------------------------------------------------------------------------------------ 391,900 St. John Knits, Inc. 18,076,388 Tobacco (0.5%) - ------------------------------------------------------------------------------------------------ 1,350,000 UST, Inc. 45,393,750 Trucking (0.3%) - ------------------------------------------------------------------------------------------------ 1,300,000 Ryder System, Inc. 30,387,500 Wireless Communications (1.4%) - ------------------------------------------------------------------------------------------------ 1,200,000 Airtouch Communications, Inc. + 33,900,000 3,476,660 Paging Network, Inc. + 88,654,830 547,400 Vanguard Cellular Systems, Inc. + 11,495,400 ------------------ 134,050,230 ------------------ Total Common Stocks (cost $6,527,682,374) $8,991,774,645 PREFERRED STOCKS (0.1%)*(cost $16,466,707) NUMBER OF SHARES VALUE - ------------------------------------------------------------------------------------------------ 157,130 Hornbach Holding DM 2.2 Pfd. (Germany) $12,920,140 WARRANTS ( - )*(cost$ - ) EXPIRATION NUMBER OF WARRANTS DATE VALUE - ------------------------------------------------------------------------------------------------ 10,673 Jan Bell Marketing, Inc. + 12/16/98 $672 SHORT-TERM INVESTMENTS (4.0%)* PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------ $26,000,000 Federal Home Loan Mortgage Corp. 6.48s, 3/4/96 $25,851,260 20,000,000 Federal Home Loan Mortgage Corp. 6.31s, 3/7/96 19,896,750 4,000,000 Federal National Mortgage Assoc. 5.48s, 3/6/96 3,979,907 30,000,000 Federal National Mortgage Assoc. 5.27s, 4/12/96 29,694,700 30,000,000 Federal National Mortgage Assoc. 5.23s, 4/4/96 29,729,100 20,000,000 Federal National Mortgage Assoc. 4.98s, 7/19/96 19,544,195 20,000,000 Fleet Mortgage Corp. 5.47s, 3/8/96 19,893,639 10,000,000 Ford Motor Company Credit Corp. 5.62s, 2/5/97 9,993,756 20,000,000 General Electric Capital Corp. 5.10s, 7/15/96 19,544,417 20,000,000 GTE North 5.38s, 2/26/96 19,919,300 20,000,000 JP Morgan Co. Inc. 5.565s, 3/6/96 19,894,978 25,000,000 Metlife Funding Corp. 6.63s, 2/16/96 24,941,354 30,000,000 Sheffield Receivables Corp. 5.36s, 3/26/96 29,758,800 20,000,000 USAA Capital Corp. 5.63s, 2/9/96 19,974,978 81,372,000 Interest in $942,854,000 joint repurchase agreement dated January 31, 1996 with Morgan Stanley & Co. Inc. due February 1, 1996 with respect to various U.S. Treasury obligations-maturity value of $81,385,223 for an effective yield of 5.85% 81,385,223 ------------------ Total Short-Term Investments (cost $374,418,494) $374,002,357 ------------------ Total Investments (cost $6,918,567,575)*** $9,378,697,814 - ------------------------------------------------------------------------------------------------ * Percentages indicated are based on net assets of $9,337,245,972. + Non-income-producing security. *** The aggregate identified cost on a tax basis is $6,933,349,493, resulting in a gross unrealized appreciaton and depreciation of $2.589,199,336 and $143,851,015, respectively, or net unrealized appreciaton of $2,445,348,321. ADR after the name of a foreign holding, stands for American Depository Receipt, representing ownership of foreign securities on deposit with a domestic custodian bank. The accompanying notes are an integral part of these financial statements.
Statement of assets and liabilities January 31,1996 (Unaudited) Assets - --------------------------------------------------------------------------------------------------- Investments in securities, at value (identified cost $6,918,567,575) (Note 1) $9,378,697,814 - --------------------------------------------------------------------------------------------------- Cash 371 - --------------------------------------------------------------------------------------------------- Dividends, interest and other receivables 4,144,879 - --------------------------------------------------------------------------------------------------- Receivable for shares of the fund sold 41,597,695 - --------------------------------------------------------------------------------------------------- Receivable for securities sold 94,763,003 - --------------------------------------------------------------------------------------------------- Total assets $9,519,203,762 Liabilities - --------------------------------------------------------------------------------------------------- Distributions payable to shareholders 17,188 - --------------------------------------------------------------------------------------------------- Payable for securities purchased 155,241,935 - --------------------------------------------------------------------------------------------------- Payable for shares of the fund repurchased 6,822,121 - --------------------------------------------------------------------------------------------------- Payable for compensation of Manager (Note 2) 11,155,275 - --------------------------------------------------------------------------------------------------- Payable for investor servicing and custodian fees (Note 2) 4,494,040 - --------------------------------------------------------------------------------------------------- Payable for compensation of Trustees (Note 2) 5,394 - --------------------------------------------------------------------------------------------------- Payable for administrative services (Note 2) 5,118 - --------------------------------------------------------------------------------------------------- Payable for distribution fees (Note 2) 3,358,629 - --------------------------------------------------------------------------------------------------- Other accrued expenses 858,090 - --------------------------------------------------------------------------------------------------- Total liabilities 181,957,790 - --------------------------------------------------------------------------------------------------- Net assets $9,337,245,972 Represented by - --------------------------------------------------------------------------------------------------- Paid-in-capital (Notes 1 and 4) $6,682,900,270 - --------------------------------------------------------------------------------------------------- Accumulated net investment loss (Note 1) (12,779,455) - --------------------------------------------------------------------------------------------------- Accumulated net realized gain on investment transactions and foreign currency transactions (Note1) 206,997,584 - --------------------------------------------------------------------------------------------------- Net unrealized appreciation of investments and assets and liabilities in foreign currencies (Note 1) 2,460,127,573 - --------------------------------------------------------------------------------------------------- Total -- Representing net assets applicable to capital shares outstanding $9,337,245,972 Computation of net asset value and offering price - --------------------------------------------------------------------------------------------------- Net asset value and redemption price of class A shares ($6,232,058,377 divided by 404,680,351 shares) $15.40 - --------------------------------------------------------------------------------------------------- Offering price per class A share (100/94.25 of $15.40)* $16.34 - --------------------------------------------------------------------------------------------------- Net asset value and offering price of class B shares ($2,613,833,172 divided by 175,600,527 shares)** $14.89 - --------------------------------------------------------------------------------------------------- Net asset value and redemption price of class M shares ($48,509,700 divided by 3,166,028 shares) $15.32 - --------------------------------------------------------------------------------------------------- Offering price per class M share (100/96.50 of $15.32)* $15.88 - --------------------------------------------------------------------------------------------------- Net asset value and offering price of class Y shares ($442,844,723 divided by 28,576,306 shares) $15.50 - --------------------------------------------------------------------------------------------------- * On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. ** Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. The accompanying notes are an integral part of these financial statements.
Statement of operations Six months ended January 31,1996 (Unaudited) Investment income: - --------------------------------------------------------------------------------------------------- Dividends (net of foreign tax of $297,545) $30,222,206 - --------------------------------------------------------------------------------------------------- Interest 6,488,247 - --------------------------------------------------------------------------------------------------- Total investment income 36,710,453 Expenses: - --------------------------------------------------------------------------------------------------- Compensation of Manager (Note 2) 21,103,257 - --------------------------------------------------------------------------------------------------- Investor servicing and custodian fees (Note 2) 9,066,058 - --------------------------------------------------------------------------------------------------- Compensation of Trustees (Note 2) 63,370 - --------------------------------------------------------------------------------------------------- Administrative services (Note 2) 30,846 - --------------------------------------------------------------------------------------------------- Distribution fees -- Class A (Note 2) 6,906,647 - --------------------------------------------------------------------------------------------------- Distribution fees -- Class B (Note 2) 11,135,396 - --------------------------------------------------------------------------------------------------- Distribution fees -- Class M (Note 2) 105,486 - --------------------------------------------------------------------------------------------------- Reports to shareholders 289,182 - --------------------------------------------------------------------------------------------------- Auditing 61,155 - --------------------------------------------------------------------------------------------------- Legal 48,844 - --------------------------------------------------------------------------------------------------- Postage 84,283 - --------------------------------------------------------------------------------------------------- Registration fees 583,973 - --------------------------------------------------------------------------------------------------- Other expenses 158,828 - --------------------------------------------------------------------------------------------------- Total expenses 49,637,325 - --------------------------------------------------------------------------------------------------- Expense reduction (Note 2) (147,417) - --------------------------------------------------------------------------------------------------- Net expenses 49,489,908 - --------------------------------------------------------------------------------------------------- Net investment loss (12,779,455) - --------------------------------------------------------------------------------------------------- Net realized gain on investments (Notes 1 and 3) 398,424,806 - --------------------------------------------------------------------------------------------------- Net realized loss on forward currency translation (Note 1) (9,908) - --------------------------------------------------------------------------------------------------- Net unrealized depreciation on foreign currency translation during the period (3,857) - --------------------------------------------------------------------------------------------------- Net unrealized appreciation of investments during the period 620,138,566 - --------------------------------------------------------------------------------------------------- Net gain on investment transactions 1,018,549,607 - --------------------------------------------------------------------------------------------------- Net increase in net assets resulting from operations $1,005,770,152 - --------------------------------------------------------------------------------------------------- The accompanying notes are an integral part of these financial statements.
Statement of changes in net assets Six months ended Year ended January 31 July 31 1996* 1995 - --------------------------------------------------------------------------------------------------- ------------------- Increase in net assets - --------------------------------------------------------------------------------------------------- ------------------- Operations: - --------------------------------------------------------------------------------------------------- ------------------- Net investment loss $(12,779,455) $(272,404) - --------------------------------------------------------------------------------------------------- ------------------- Net realized gain on investments and foreign currency transactions 398,414,898 340,186,139 - --------------------------------------------------------------------------------------------------- ------------------- Net unrealized appreciation of investments and assets and liabilities in foreign currencies 620,134,709 1,308,965,207 - --------------------------------------------------------------------------------------------------- ------------------- Net increase in net assets resulting from operations 1,005,770,152 1,648,878,942 - --------------------------------------------------------------------------------------------------- ------------------- Distributions to shareholders: - --------------------------------------------------------------------------------------------------- ------------------- From net realized gain on investments: Class A (317,078,060) (145,558,356) - --------------------------------------------------------------------------------------------------- ------------------- Class B (135,044,884) (49,513,213) - --------------------------------------------------------------------------------------------------- ------------------- Class M (2,100,491) (12,706) - --------------------------------------------------------------------------------------------------- ------------------- Class Y (22,691,613) (4,827,692) - --------------------------------------------------------------------------------------------------- ------------------- Increase from capital share transactions (Note 4) 1,672,019,972 1,642,355,205 - --------------------------------------------------------------------------------------------------- ------------------- Total increase in net assets 2,200,875,076 3,091,322,180 - --------------------------------------------------------------------------------------------------- ------------------- Net assets - --------------------------------------------------------------------------------------------------- ------------------- Beginning of period 7,136,370,896 4,045,048,716 - --------------------------------------------------------------------------------------------------- ------------------- End of period (including accumulated net investment loss of $12,779,455 and $0, respectively) $9,337,245,972 $7,136,370,896 - --------------------------------------------------------------------------------------------------- ------------------- * Unaudited. The accompanying notes are an integral part of these financial statements.
Financial Highlights (For a share outstanding throughout the period) - ----------------------------------------------------------------------------------------------- Six April 1, 1994 months Year (commencement of Six months ended ended operations) to ended January 31 July 31 July 31 January 31 - ----------------------------------------------------------------------------------------------- 1996* 1995 1994 1996* - ----------------------------------------------------------------------------------------------- Class Y Class M - ----------------------------------------------------------------------------------------------- Net asset value, beginning of period $14.48 $11.22 $11.24 $14.37 - ----------------------------------------------------------------------------------------------- Investment operations - ----------------------------------------------------------------------------------------------- Net investment income (loss) .01 .03 -- (.02) - ----------------------------------------------------------------------------------------------- Net realized and unrealized gain (loss) on investments 1.87 3.74 (.02) 1.83 - ----------------------------------------------------------------------------------------------- Total from investment operations 1.88 3.77 (.02) 1.81 - ----------------------------------------------------------------------------------------------- Less distributions from: - ----------------------------------------------------------------------------------------------- Net investment income -- -- -- -- - ----------------------------------------------------------------------------------------------- Net realized gain on investments (.86) (.51) -- (.86) - ----------------------------------------------------------------------------------------------- Total distributions (.86) (.51) -- (.86) - ----------------------------------------------------------------------------------------------- Net asset value, end of period $15.50 $14.48 $11.22 $15.32 - ----------------------------------------------------------------------------------------------- Total investment return at net asset value (%)(a) 13.29(b) 34.90 (.18)(b) 12.90(b) - ----------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $442,845 $351,817 $82,102 $48,510 - ----------------------------------------------------------------------------------------------- Ratio of expenses to average net assets (%)(c) .39(b) .83 .31(b) .72(b) - ----------------------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets (%) .07(b) .39 (.05)(b) (.27)(b) - ----------------------------------------------------------------------------------------------- Portfolio turnover (%) 28.79(b) 65.43 57.74 28.79(b) - ----------------------------------------------------------------------------------------------- Financial Highlights (Continued) - ------------------------------------------------------------------------------------------- December 1, 1994 Six (commencement months operations) to ended July 31 January 31 Year ended July 31 - ------------------------------------------------------------------------------------------- 1995 1996* 1995 1994 - ------------------------------------------------------------------------------------------- Class M Class B - ------------------------------------------------------------------------------------------- Net asset value, beginning of period $11.79 $14.01 $10.97 $10.89 - ------------------------------------------------------------------------------------------- Investment operations - ------------------------------------------------------------------------------------------- Net investment income (loss) (.01) (.03) (.06) (.05) - ------------------------------------------------------------------------------------------- Net realized and unrealized gain (loss) on investments 3.10 1.77 3.61 .59 - ------------------------------------------------------------------------------------------- Total from investment operations 3.09 1.74 3.55 .54 - ------------------------------------------------------------------------------------------- Less distributions from: - ------------------------------------------------------------------------------------------- Net investment income -- -- -- -- - ------------------------------------------------------------------------------------------- Net realized gain on investments (.51) (.86) (.51) (.46) - ------------------------------------------------------------------------------------------- Total distributions (.51) (.86) (.51) (.46) - ------------------------------------------------------------------------------------------- Net asset value, end of period $14.37 $14.89 $14.01 $10.97 - ------------------------------------------------------------------------------------------- Total investment return at net asset value (%)(a) 27.42(b) 12.74(b) 33.65 4.71 - ------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $19,004 $2,613,833 $1,870,370 $911,069 - ------------------------------------------------------------------------------------------- Ratio of expenses to average net assets (%)(c) 1.06(b) .90(b) 1.82 1.84 - ------------------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets (%) (.24)(b)) (.44)(b) (.58) (.91) - ------------------------------------------------------------------------------------------- Portfolio turnover (%) 65.43 28.79(b) 65.43 57.74 - ------------------------------------------------------------------------------------------- Financial Highlights (Continued) - ------------------------------------------------------------------------------------------- April 27, 1992** Six (commencement months operations) to ended July 31 January 31 - ------------------------------------------------------------------------------------------- 1993 1992 1996* 1995 - ------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------- Net asset value, beginning of period $9.63 $9.34 $14.42 $11.19 - ------------------------------------------------------------------------------------------- Investment operations - ------------------------------------------------------------------------------------------- Net investment income (loss) (.03) (.04) (.01) .02 - ------------------------------------------------------------------------------------------- Net realized and unrealized gain (loss) on investments 1.81 .33 1.85 3.72 - ------------------------------------------------------------------------------------------- Total from investment operations 1.78 .29 1.84 3.74 - ------------------------------------------------------------------------------------------- Less distributions from: - ------------------------------------------------------------------------------------------- Net investment income -- -- -- -- - ------------------------------------------------------------------------------------------- Net realized gain on investments (.52) -- (.86) (.51) - ------------------------------------------------------------------------------------------- Total distributions (.52) -- (.86) (.51) - ------------------------------------------------------------------------------------------- Net asset value, end of period $10.89 $9.63 $15.40 $14.42 - ------------------------------------------------------------------------------------------- Total investment return at net asset value (%)(a) 18.79 3.11(b) 13.07(b) 34.72 - ------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $408,361 $42,492 $6,232,058 $4,895,180 - ------------------------------------------------------------------------------------------- Ratio of expenses to average net assets (%)(c) 1.87 .63(b) .52(b) 1.07 - ------------------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets (%) (.91) (.39)(b) (.06)(b) .17 - ------------------------------------------------------------------------------------------- Portfolio turnover (%) 64.62 44.17 28.79(b) 65.43 - ------------------------------------------------------------------------------------------- Financial Highlights (Continued) - ------------------------------------------------------------------------------------------- Year ended July 31 - ------------------------------------------------------------------------------------------- 1994 1993 1992 1991 - ------------------------------------------------------------------------------------------- Class A - ------------------------------------------------------------------------------------------- Net asset value, beginning of period $11.02 $9.67 $9.00 $7.98 - ------------------------------------------------------------------------------------------- Investment operations - ------------------------------------------------------------------------------------------- Net investment income (loss) (.02) (.02) .02 .02 - ------------------------------------------------------------------------------------------- Net realized and unrealized gain (loss) on investments .65 1.89 1.16 1.70 - ------------------------------------------------------------------------------------------- Total from investment operations .63 1.87 1.18 1.72 - ------------------------------------------------------------------------------------------- Less distributions from: - ------------------------------------------------------------------------------------------- Net investment income -- -- (.03) (.07) - ------------------------------------------------------------------------------------------- Net realized gain on investments (.46) (.52) (.48) (.63) - ------------------------------------------------------------------------------------------- Total distributions (.46) (.52) (.51) (.70) - ------------------------------------------------------------------------------------------- Net asset value, end of period $11.19 $11.02 $9.67 $9.00 - ------------------------------------------------------------------------------------------- Total investment return at net asset value (%)(a) 5.49 19.69 13.39 24.04 - ------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $3,051,878 $2,403,332 $1,549,128 $1,016,539 - ------------------------------------------------------------------------------------------- Ratio of expenses to average net assets (%)(c) 1.10 1.12 1.20 1.10 - ------------------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets (%) (.18) (.14) .27 .29 - ------------------------------------------------------------------------------------------- Portfolio turnover (%) 57.74 64.62 44.17 49.43 - ------------------------------------------------------------------------------------------- See page 28 for Notes to Financial Highlights. * Unaudited ** Per share net investment income has been determined on the basis of weighted average number of shares outstanding during the period. (a) Total investment return assumes dividend reinvestment and does not reflect the effect of sales charges. (b) Not annualized. (c) The ratio of expenses to average net assets for the period ended January 31, 1996 includes amounts paid through expense offset arrangements. Prior period ratios excluded these amounts (See Note 2).
Notes to financial statements January 31, 1996 (Unaudited) Note 1 Significant accounting policies The fund is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management investment company. The fund invests primarily in common stocks of companies that Putnam Investment Management, Inc. ("Putnam Management"), the fund's Manager, a wholly-owned subsidiary of Putnam Investments, Inc., believes have potential for capital appreciation significantly greater than that of the market averages. The fund offers class A, class B, class Y and class M 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 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 Y shares are subject to the same fees and expenses as class B shares, except that class Y shares have a one-year 1.00% contingent deferred sales charge and do not convert to class A shares. 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 and class Y shares. Class Y shares, which are sold at net asset value, are generally subject to the same expenses as class A shares and class B 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 the fund were liquidated. In addition, the Trustees declare separate dividends on each class of shares. The following is a summary of significant accounting policies consistently followed by the fund in the preparation of its financial statements. The preparation of financial statements are 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, except that certain U.S. government obligations are stated at the mean between the bid and asked prices. Short-term investments having remaining maturities of 60 days or less are stated at amortized cost, which approximates market value, 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 managed by Putnam Management and certain other accounts. 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 102% of 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 and 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) Federal taxes It is the policy of the fund to distribute all of its income within the prescribed time and otherwise comply with the provisions of the Internal Revenue Code applicable to regulated investment companies. It is also the intention of the fund to distribute an amount sufficient to avoid imposition of any excise tax under Section 4982 of the Internal Revenue Code of 1986. Therefore, no provision has been made for federal taxes on income, capital gains or unrealized appreciation on securities held and for excise tax on income and capital gains. F) 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. G) Distributions to shareholders Distributions to shareholders are recorded by the fund on the ex-dividend date. 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 for the quarter. Such fee is based on the following annual rates: 0.70% of the first $500 million of average net assets, 0.60% of the next $500 million, 0.55% of the next $500 million, and 0.50% of any amount over $1.5 billion, subject, under current law, to reduction in any year to the extent that expenses (exclusive of brokerage, interest, taxes, distribution fees, credits allowed by PFTC and extraordinary expenses) of the fund exceed 2.5% of the first $30 million of average net assets, 2.0% of the next $70 million and 1.5% of any amount over $100 million, and by the amount of certain brokerage commissions and fees (less expenses) received by affiliates of the Manager on the fund's portfolio transactions. 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 $7,798 and an additional fee for each Trustee's meeting attended. Trustees who are not interested persons of Putnam Management and who serve on committees of the Trustees receive additional fees for attendance at certain committee meetings. The fund adopted a Trustee Fee Deferral Plan (the "Plan") which allows the Trustees to defer the receipt of all or a portion of Trustees Fees payable on or after July 1, 1995. The deferred fees remain in the fund and are invested in the fund or in other Putnam funds until distribution in accordance with the Plan. 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 January 31, 1996, fund expenses were reduced by $147,417 under expense offset arrangements with PFTC. Investor servicing and custodian fees reported in the Statement of operations exclude these credits. The fund could have invested the 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 January 31, 1996, Putnam Mutual Funds Corp., acting as underwriter received net commissions of $2,519,577 and $52,906 from the sale of class M and class Y shares, respectively and received $1,319,455 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 January 31, 1996, Putnam Mutual Funds Corp., acting as underwriter received $26,628 on class A redemptions. Note 3 Purchases and sales of securities During the six months ended January 31, 1996, purchases and sales of investment securities other than short-term investments aggregated $3,474,127,379 and $2,295,005,364, 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 January 31, 1996, there was an unlimited number of shares of beneficial interest authorized. Transactions in capital shares were as follows: Six months ended January 31, 1996 - ---------------------------------------------------- Class A Shares Amount - ---------------------------------------------------- Shares sold 85,616,790 $1,286,813,501 - ---------------------------------------------------- Shares issued in connection with reinvestment of distributions 20,777,506 304,181,204 - ---------------------------------------------------- 106,394,296 1,590,994,705 Shares repurchased (41,289,148) (620,824,915) - ---------------------------------------------------- Net increase 65,105,148 $970,169,790 - ---------------------------------------------------- Year ended July 31, 1995 - ---------------------------------------------------- Class A Shares Amount - ---------------------------------------------------- Shares sold 148,502,110 $1,832,997,253 - ---------------------------------------------------- Shares issued in connection with reinvestment of distributions 12,438,947 139,191,797 - ---------------------------------------------------- 160,941,057 1,972,189,050 Shares repurchased (94,138,474) (1,170,082,797) - ---------------------------------------------------- Net increase 66,802,583 $802,106,253 - ---------------------------------------------------- Six months ended January 31, 1996 - ---------------------------------------------------- Class B Shares Amount Shares sold 43,275,105 $630,957,891 - ---------------------------------------------------- Shares issued in connection with reinvestment of distributions 8,895,764 125,963,673 - ---------------------------------------------------- 52,170,869 756,921,564 Shares repurchased (10,051,074) (146,444,533) - ---------------------------------------------------- Net increase 42,119,795 $610,477,031 - ---------------------------------------------------- Year ended July 31, 1995 - ---------------------------------------------------- Class B Shares Amount - ---------------------------------------------------- Shares sold 62,162,491 $748,057,897 - ---------------------------------------------------- Shares issued in connection with reinvestment of distributions 4,231,663 46,209,683 - ---------------------------------------------------- 66,394,154 794,267,580 Shares repurchased (15,970,928) (191,170,815) - ---------------------------------------------------- Net increase 50,423,226 $603,096,765 - ---------------------------------------------------- Six months ended January 31, 1996 - ---------------------------------------------------- Class Y Shares Amount - ---------------------------------------------------- Shares sold 5,404,738 $81,599,557 - ---------------------------------------------------- Shares issued in connection with reinvestment of distributions 1,540,524 22,691,919 - ---------------------------------------------------- 6,945,262 104,291,476 Shares repurchased (2,660,847) (40,372,562) - ---------------------------------------------------- Net increase 4,284,415 $63,918,914 - ---------------------------------------------------- Year ended July 31, 1995 - ---------------------------------------------------- Class Y Shares Amount - ---------------------------------------------------- Shares sold 19,003,487 $246,497,467 - ---------------------------------------------------- Shares issued in connection with reinvestment of distributions 430,221 4,827,084 - ---------------------------------------------------- 19,433,708 251,324,551 Shares repurchased (2,461,794) (31,084,728) - ---------------------------------------------------- Net increase 16,971,914 $220,239,823 - ---------------------------------------------------- Six months ended January 31, 1996 - ---------------------------------------------------- Class M Shares Amount - ---------------------------------------------------- Shares sold 1,931,282 $28,843,626 - ---------------------------------------------------- Shares issued in connection with reinvestment of distributions 137,680 2,005,997 - ---------------------------------------------------- 2,068,962 30,849,623 Shares repurchased (225,264) (3,395,386) - ---------------------------------------------------- Net increase 1,843,698 $27,454,237 - ---------------------------------------------------- December 1, 1994 (commencement of operations) to July 31, 1995 - ---------------------------------------------------- Class M Shares Amount - ---------------------------------------------------- Shares sold 1,405,252 $17,976,348 - ---------------------------------------------------- Shares issued in connection with reinvestment of distributions 1,112 12,448 - ---------------------------------------------------- 1,406,364 17,988,796 Shares repurchased (84,034) (1,076,432) - ---------------------------------------------------- Net increase 1,322,330 $16,912,364 - ---------------------------------------------------- Our commitment to quality service * CHOOSE AWARD-WINNING SERVICE Putnam Investor Services has won the DALBAR Quality Tested Service Seal for the past six years. In 1995, over 146,000 tests of 56 shareholder service components demonstrated that Putnam outperformed the industry standard in every category. * HELP YOUR INVESTMENT GROW Set up a systematic program for investing with as little as $25 a month from a Putnam money market fund or from your checking or savings account.* * SWITCH FUNDS EASILY You can move money from one account to another with the same class of shares without a service charge. (This privilege is subject to change or termination.) * ACCESS YOUR MONEY QUICKLY You can get checks sent regularly or redeem shares any business day at the then-current net asset value, which may be more or less than the original cost of the shares. For details about any of these or other services, contact your financial advisor or call the toll-free number shown below and speak with a helpful Putnam representative. To make an additional investment in this or any other Putnam fund, contact your financial advisor or call our toll-free number: 1-800-225-1581. * Regular investing of course, does not guarantee a profit or protect against a loss in a declining market. 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 Elizabeth T. Kennan Lawrence J. Lasser Robert E. Patterson Donald S. Perkins George Putnam, III Eli Shapiro 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 Roland W. Gillis Vice President and Fund Manager Charles H. Swanberg Vice President and Fund Manager Robert R. Beck 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 Voyager Fund. It may also be used as sales literature when preceded or accompanied by the current prospectus, which gives details of sales charges, investment objectives, and operating policies of the fund, and the most recent copy of Putnam's Quarterly Performance Summary. For more information, or to request a prospectus, call toll free: 1-800-225-1581. 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. PUTNAM INVESTMENTS The Putnam Funds One Post Office Square Boston, Massachusetts 02109 23299-007/883/530 3/96 Bulk Rate U.S. Postage PAID Putnam Investments -----END PRIVACY-ENHANCED MESSAGE-----