-----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, B61yE1Vt7/k4lImIJ3VZDi30wAG/fZLF0oXNnJIvnA3wsr3tvvLUUFawWsOCIbpS AmfTdwmGE0UedC0ymNegOA== 0000928816-98-000100.txt : 19980325 0000928816-98-000100.hdr.sgml : 19980325 ACCESSION NUMBER: 0000928816-98-000100 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980131 FILED AS OF DATE: 19980324 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: SEC FILE NUMBER: 811-01682 FILM NUMBER: 98572062 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, 1998 [LOGO: BOSTON * LONDON * TOKYO] Fund highlights * Putnam Voyager Fund has delivered strong long-term returns, as evidenced by rankings of capital appreciation funds tracked by Lipper Analytical Services. For the 10 years ended January 31, 1998, the fund's class A shares ranked in the top 9% of Lipper's capital appreciation funds category, or 5 out of 55 funds.* * "We see 1998 as a transition year for growth investors as the market begins to focus on small and midsize stocks that offer significantly higher growth rates than those of large-cap stocks while trading at historically low valuations." -- Roland W. Gillis, manager, Putnam Voyager Fund CONTENTS 4 Report from Putnam Management 9 Fund performance summary 12 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 13 out of 82 funds (top 16%) for 5-year performance and 89 out of 235 funds (top 38%) for 1-year performance as of 1/31/98. Performance and rankings of other share classes will differ. Past performance is not indicative of future results. From the Chairman [GRAPHIC OMITTED: PHOTO OF GEORGE PUTNAM] [copyright] Karsh, Ottawa Dear Shareholder: As Putnam Voyager Fund began its new fiscal year last July, both domestic and international equity markets were still strong overall but somewhat inverted with old-line conservative stocks outpacing young upstarts. This turnabout had occurred as investors grew increasingly cautious about the durability of the aging global bull market. The inversion became even further exaggerated when last fall's Asian currency crisis sent the world's stock markets reeling. Defensive actions taken earlier by your fund's management team in response to the weakness in technology mitigated the negative effects of the late-year market disruptions on fund results. I am pleased to report the addition of Michael E. Nance and Michael P. Stack to the fund's management team. After several years in the consumer-products industry, Mike Nance joined Putnam in 1994 as an analyst in the Global Equity Research Group. He has four years of investment management experience. Mike Stack was with Independence Investment Associates and National Life Investment Management before joining Putnam in 1997. He has 12 years of investment experience. Respectfully yours, /S/GEORGE PUTNAM George Putnam Chairman of the Trustees March 18, 1998 Report from the Fund Managers Roland W. Gillis Charles H. Swanberg Robert R. Beck Michael E. Nance Michael Stack The final months of 1997 and the start of 1998 showcased a topsy-turvy atmosphere for the U.S. stock market as investors sorted out the implications of the Asian financial crisis. Within this difficult environment, Putnam Voyager Fund -- an all-weather growth fund that targets large, small, and midsize stocks -- performed relatively well. For the six months ended January 31, 1998, the fund's class A shares provided a total return of 3.98% at NAV (- 2.01% at public offering price) against the 3.56% return of the Standard & Poor's 500(registered trademark) Index, an index primarily made up of large-company stocks. For complete performance information, see pages 9 and 10. During the period, we attempted to mitigate some of the volatility affecting one of the fund's primary stock sectors, technology. Additionally, we took advantage of a strong year for mergers and acquisitions. As always, we sought companies with strong earnings growth prospects that were well positioned in attractive growth industries. * SWITCHING GEARS IN TECHNOLOGY AREA One of the first changes to become apparent as a result of the Asian situation was lower prices for commodity semiconductors such as DRAMs (dynamic random access memories). Lower or devalued currencies in Taiwan, South Korea, and Japan, the leading producers of these basic digital components, seemed likely to spike export growth in this area of information technology. For instance, our decision to reduce the fund's positions in companies such as Applied Materials proved quite beneficial, as their price declined toward the close of the period. We did not abandon the semiconductor industry, however. Instead, we targeted analog products. This group uses higher-priced components than the digital group and has less competition from Asian companies. We bought stocks of several analog companies at attractive prices, including Maxim Integrated Products, Linear Technology, and Analog Devices. While these holdings, along with others discussed in this report, were viewed favorably at the end of the fiscal period, all are subject to review and adjustment in accordance with the fund's investment strategy and may vary in the future. * TARGETING COMPANIES ADDRESSING YEAR 2000 PROBLEM As the end of the century approaches, companies around the world have been forced to deal with the now well-publicized Year 2000 problem. They are struggling to prevent the loss of essential data within computer systems that are not programmed to recognize 00 as the year 2000, mistaking it for the year 1900 instead. However, companies have to consider that the lengthy time needed to install entirely new systems to deal with the problem is running out. Therefore, many companies are now seeking firms that will help them test and fix their current systems. Thus, we began to de-emphasize companies in the portfolio that provide new systems, focusing instead on those whose solutions are designed to modify existing systems. For example, we believe the valuations of companies such as PeopleSoft are stretched and that this type of firm will begin to lose earnings momentum. On the other hand, we see great potential in other Year 2000-related companies such as EMC Corp. EMC produces and supports systems for storing data in computers and was recently named one of 1997's fastest-growing U.S. technology companies by the major accounting firm Deloitte & Touche. EMC benefits from testing for the Year 2000 problem because extra data storage and mainframe capacity are needed to do testing procedures. [GRAPHIC OMITTED: horizontal bar chart TOP INDUSTRY SECTORS] TOP INDUSTRY SECTORS* Retail 11.7% Computer software 9.0% Pharmaceuticals and Biotechnology 6.2% Business services 6.4% Finance 5.0% Footnote reads: *Based on net assets as of 1/31/98. Holdings will vary over time. Mainframe software company Computer Associates International also has taken advantage of this trend. In addition, the company has enjoyed strong sales growth for its new product, Unicenter. Finally, Compuware derives a direct benefit from the Year 2000 problem in that it not only produces the actual mainframe testing tools but provides testing services as well. * DEFENSIVE HOLDINGS DELIVER STRONG RETURNS Over the past six months, we focused on stocks we believed could grow their earnings despite the changing market. One defensive area represented in the fund is specialty retailing. Stellar performers included Costco Companies, a chain of wholesale membership warehouses, and Kohls Corporation, which operates specialty department stores in the Midwest. Other holdings include Williams-Sonoma, which enjoyed strong catalog sales, and CompUSA, the beneficiary of surging sales in the under-$1,000 personal computer market. With low interest rates, extensive consolidation in the banking industry, and solid demand for financial services, banking and financial services companies were strong performers. For example, in 1997, American Express dramatically increased its share of the U.S. credit-card market, reversing a decade-long slide. In addition, the company has become more streamlined, getting out of several businesses in order to focus on credit cards, travel, and financial services. As a result, American Express stock has outperformed the market. * CABLE, BROADCASTING, MEDIA OFFER RENEWED VALUE Although it was passed in 1996, legislation that loosened restrictions on broadcasters continued to spawn a good deal of merger and acquisition activity in this sector throughout 1997. Passage of the Telecommunications Act of 1996 allowed for ownership of multiple radio and television stations, which boosted the value of many broadcasting companies poised for expansion. [GRAPHIC OMITTED: TOP 10 HOLDINGS] TOP 10 HOLDINGS Computer Associates Intl., Inc. Computer software Cendant Corp. Business services Costco Companies, Inc. Retail CBS Corp. Broadcasting Tele-Communications, Inc. Class A Cable television American Express Co. Finance Federal Home Loan Mortgage Corp. Finance Tele-Communications TCI Ventures Group Class A Financial services Federal National Mortgage Association Finance Compuware Corp. Computer software Footnote reads: These holdings represent 16.5% of the fund's net assets as of 1/31/98. Portfolio holdings will vary over time. One beneficiary in the fund's portfolio is Chancellor Media Corporation, which was formed in September with the merger of Chancellor Broadcasting and Evergreen Media Corporation, both of which were already in your fund's portfolio. The new company owns and operates 99 radio stations in 21 of the nation's largest markets. Clear Channel Communications also acquired billboard company Universal Outdoor, which represents a growing segment in the media area. Another outstanding performer was CBS Corporation, formerly Westinghouse Electric. Now a pure broadcasting business, the company is better positioned to benefit from this rapidly growing sector. CBS has already profited from numerous radio acquisitions and continues to make improvements in other areas such as television programming and the launching of new cable networks. We also began to acquire cable television stocks. For example, because we bought the stock of Tele-Communications some time ago, the fund profited from the split of Tele-Communications and TCI Ventures. In general, we have observed a resurgence in demand for cable-related products as well as new areas of growth including the joining of cable, the Internet, and telecommunications within households. * PORTFOLIO POSITIONED FOR AN FOR UNCERTAIN 1998 As market volatility escalated in the fourth quarter of 1997, investors sought high-quality dollar-denominated assets. This development sparked a rally in U.S. Treasury bonds, but it also helped large-capitalization stocks that the market perceived to have dependable earnings growth potential. Hence, the Dow Jones Industrial Average returned a record third straight year of gains greater then 20%. Therefore, we believe the risk is higher that earnings disappointments in these large-cap stocks will be reported on a regular basis. With this in mind, we believe the portfolio will benefit from our emphasis on small and midsize stocks possessing higher growth rates and more reasonable valuations than their larger brethren. 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 1/31/98, there is no guarantee the fund will continue to hold these securities in the future. This fund invests all or a portion of its assets in small to midsize companies. Such investments increase the risk of greater price fluctuations. Performance summary This section provides information about your fund's performance, which should always be considered in light of its investment strategy. Putnam Voyager Fund is designed for investors seeking aggressive capital appreciation through common stocks. TOTAL RETURN FOR PERIODS ENDED 1/31/98 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 3.98% -2.01% 3.63% -1.21% 3.72% 0.07% - ------------------------------------------------------------------------------ 1 year 20.41 13.47 19.53 14.53 19.80 15.63 - ------------------------------------------------------------------------------ 5 years 136.59 123.01 127.83 125.83 130.70 122.65 Annual average 18.80 17.40 17.90 17.69 18.20 17.36 - ------------------------------------------------------------------------------ 10 years 468.25 435.57 423.32 423.32 438 419.16 Annual average 18.97 18.27 18.00 18.00 18.33 17.90 - ------------------------------------------------------------------------------ Annual average (Life of fund) 14.05 13.81 12.97 12.97 13.27 13.13 - ------------------------------------------------------------------------------ COMPARATIVE INDEX RETURNS FOR PERIODS ENDED 1/31/98 Standard & Poor's Consumer 500 Index Price Index - ------------------------------------------------------------------------------ 6 months 3.56% 0.69% - ------------------------------------------------------------------------------ 1 year 26.91 1.57 - ------------------------------------------------------------------------------ 5 years 152.3 13.32 Annual average 20.34 2.53 - ------------------------------------------------------------------------------ 10 years 410.03 39.67 Annual average 17.69 3.40 - ------------------------------------------------------------------------------ Annual average (Life of fund) 12.34 5.33 - ------------------------------------------------------------------------------ Returns for class A and class M shares reflect the current maximum initial sales charges of 5.75% and 3.50%, respectively. Class B share returns for the 1-, 5-, and 10-year (where available) and life-of-fund periods reflect the applicable contingent deferred sales charge (CDSC), which is 5% in the first year, declines to 1% in the sixth year, and is eliminated thereafter. Returns shown for class B and class M shares for periods prior to their inception are derived from the historical performance of class A shares, adjusted to reflect both the initial sales charge or CDSC, if any, currently applicable to each class and, in the case of class B and class M shares, the higher operating expenses applicable to such shares. All returns assume reinvestment of distributions at NAV and represent past performance; they do not guarantee future results. Investment return and principal value will fluctuate so that an investor's shares when redeemed may be worth more or less than their original cost. PRICE AND DISTRIBUTION INFORMATION 6 months ended 1/31/98 Class A Class B Class M - ------------------------------------------------------------------------------ Distributions (number) 1 1 1 - ------------------------------------------------------------------------------ Income -- -- -- - ------------------------------------------------------------------------------ Capital gains - ------------------------------------------------------------------------------ Long-term $1.111 $1.111 $1.111 - ------------------------------------------------------------------------------ Short-term 0.096 0.096 0.096 - ------------------------------------------------------------------------------ Total $1.207 $1.207 $1.207 - ------------------------------------------------------------------------------ Share value: NAV POP NAV NAV POP - ------------------------------------------------------------------------------ 7/31/97 $19.49 $20.68 $18.57 $19.22 $19.92 - ------------------------------------------------------------------------------ 1/31/98 19.01 20.17 17.99 18.68 19.36 - ------------------------------------------------------------------------------ TOTAL RETURN FOR PERIODS ENDED 12/31/97 (most recent calendar quarter) 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 13.13% 6.60% 12.72% 7.72% 12.86% 8.92% - ------------------------------------------------------------------------------ 1 year 25.98 18.76 25.07 20.07 25.39 20.99 - ------------------------------------------------------------------------------ 5 years 136.86 123.28 128.25 126.25 131.13 123.04 Annual average 18.82 17.43 17.95 17.74 18.24 17.40 - ------------------------------------------------------------------------------ 10 years 471.63 438.76 426.32 426.32 441.04 422.10 Annual average 19.05 18.34 18.07 18.07 18.39 17.97 - ------------------------------------------------------------------------------ Annual average (Life of fund) 14.10 13.87 13.03 13.03 13.33 13.19 - ------------------------------------------------------------------------------ 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. See first page of performance section for performance calculation method. 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 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 interest payments and does 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. Consumer Price Index (CPI) is a commonly used measure of inflation; it does not represent an investment return. Portfolio of investments owned January 31, 1998 (Unaudited)
COMMON STOCKS (96.4%) * NUMBER OF SHARES VALUE Advertising (1.4%) - ------------------------------------------------------------------------------------------------------------ 807,221 Lamar Advertising Co. + $ 33,146,530 2,172,410 Omnicom Group, Inc. 88,118,381 3,876,846 Outdoor Systems, Inc. + 93,044,304 465,645 TMP Worldwide Inc. + 10,768,041 767,675 Universal Outdoor Holdings, Inc. + 38,863,547 --------------- 263,940,803 Aerospace and Defense (0.4%) - ------------------------------------------------------------------------------------------------------------ 250,000 Lockheed Martin Corp. 26,015,625 428,400 Northrop Grumman Corp. 52,532,550 --------------- 78,548,175 Apparel (0.3%) - ------------------------------------------------------------------------------------------------------------ 389,836 Gucci Group N.V. (Netherlands) 15,520,346 1,175,133 Stage Stores, Inc. + 45,573,127 182,402 The Men's Wearhouse, Inc. + 6,543,672 --------------- 67,637,145 Automotive (0.5%) - ------------------------------------------------------------------------------------------------------------ 359,495 Avis Rent A Car, Inc. 12,874,415 225,411 Budget Group, Inc. (Japan) + 7,875,297 1,821,000 Snap-On Inc. 71,360,438 --------------- 92,110,150 Banks (4.1%) - ------------------------------------------------------------------------------------------------------------ 3,108,600 Banc One Corp. 173,693,025 2,400,000 BankAmerica Corp. 170,550,000 1,344,000 Fifth Third Bancorp 102,480,000 1,026,300 First Chicago NBD Corp. 76,587,638 457,000 Firstar Corp. 17,737,313 562,600 NationsBank Corp. 33,756,000 637,700 PNC Bank Corp. 32,881,406 2,898,450 Washington Mutual, Inc. 186,225,413 --------------- 793,910,795 Basic Industrial Products (0.4%) - ------------------------------------------------------------------------------------------------------------ 1,326,000 General Signal Corp. 51,714,000 1,318,350 Hussmann International, Inc. 17,962,519 --------------- 69,676,519 Broadcasting (4.8%) - ------------------------------------------------------------------------------------------------------------ 11,057,107 CBS Corp. 331,022,141 4,589,546 Chancellor Media Corp. 157,765,644 3,099,853 Clear Channel Communications, Inc. + 238,688,681 1,036,181 Heftel Broadcasting Corp. Class A + 47,405,281 139,820 ProSieben Media AG (Germany) + 6,917,242 28,680 ProSieben Media AG 144A (Germany) + 1,426,710 944,157 Sinclair Broadcast Group, Inc. Class A + 44,611,418 955,600 Univision Communications Inc. Class A + 36,432,250 2,015,000 Westwood One, Inc. + [SECTION MARK] 67,502,500 --------------- 931,771,867 Building Products (0.4%) - ------------------------------------------------------------------------------------------------------------ 1,450,000 Masco Corp. 71,412,500 Business Equipment and Services (0.1%) - ------------------------------------------------------------------------------------------------------------ 328,994 Renaissance Worldwide, Inc. 16,059,020 Business Services (6.4%) - ------------------------------------------------------------------------------------------------------------ 308,869 Abacus Direct Corp. + 10,347,112 730,836 Accustaff, Inc. + 18,819,027 616,545 Affiliated Computer Services, Inc. Class A + 18,149,543 1,356,746 Airgas, Inc. + 21,114,360 444,591 Caribiner Intl., Inc. + 14,004,617 12,429,137 Cendant Corp. + 421,037,016 1,698,600 Cintas Corp. 70,916,550 744,075 Corestaff, Inc. + 18,229,838 5,201,770 Corporate Express, Inc. + 46,003,153 2,650,000 Deluxe Corp. 87,450,000 1,374,526 Interim Services Inc. + 32,816,808 1,773,247 Interpublic Group of Cos., Inc. 86,999,931 659,566 Paychex, Inc. 31,535,499 30,054,960 Rentokil Group PLC (United Kingdom) 140,606,908 3,883,236 Robert Half International, Inc. + 149,989,991 507,800 Select Appointments Holdings PLC ADR (United Kingdom) 9,902,100 2,469,773 Serco Group PLC (United Kingdom) + 43,397,011 682,100 Snyder Communications, Inc. + 25,664,013 --------------- 1,246,983,477 Cable Television (2.7%) - ------------------------------------------------------------------------------------------------------------ 1,179,850 HSN, Inc. + 56,264,097 2,015,700 Tele-Comm Liberty Media Group, Inc. Class A + 72,187,256 10,801,302 Tele-Communications, Inc. Class A + 302,436,456 3,411,100 US West Media Group 101,267,031 --------------- 532,154,840 Chemicals (0.5%) - ------------------------------------------------------------------------------------------------------------ 1,724,300 Raychem Corp. 64,337,944 865,200 Witco Chemical Corp. 35,040,600 --------------- 99,378,544 Computer Services (4.0%) - ------------------------------------------------------------------------------------------------------------ 1,748,997 America Online, Inc. + 167,357,150 2,272,396 Capita Group PLC (United Kingdom) 14,227,202 356,509 CBT Group PLC ADR (Ireland) + 32,397,755 549,553 CheckFree Holdings Corp. 13,601,437 5,488,210 EMC Corp. + 178,709,838 1,214,400 Galileo International, Inc. + 35,824,800 1,404,200 Getronics Electric N.V. (Netherlands) 47,533,055 817,940 IDT Corp. + 20,652,985 3,468,008 Keane, Inc. + 140,887,825 386,500 Misys PLC (United Kingdom) 14,723,920 2,987,294 Sterling Commerce, Inc. + 108,476,113 105,100 Whittman-Hart, Inc. + 3,047,900 --------------- 777,439,980 Computer Software (9.0%) - ------------------------------------------------------------------------------------------------------------ 309,065 Arbor Software Corp. + 11,705,837 2,454,214 BMC Software, Inc. + 166,272,999 3,450,654 Cadence Design Systems, Inc. + 96,618,312 198,055 Citrix Systems, Inc. + 13,616,281 8,949,515 Computer Associates International, Inc. 476,002,329 6,464,630 Compuware Corp. + 252,120,570 338,152 Documentum, Inc. + 12,173,472 2,702,967 Electronic Arts, Inc. + 97,137,877 639,400 Geoworks + 3,826,409 1,093,600 Industri-Matematik International Corp. (Sweden) + [SECTION MARK] 28,707,000 198,472 Information Management Resources, Inc. 7,244,228 1,743,659 Intuit, Inc. + 65,169,255 660,300 Lernout & Hauspie Speech Products N.V. (Belgium) + 38,875,163 395,019 Microsoft Corp. + 58,931,897 4,360,255 Parametric Technology Corp. + 221,282,941 79,503 PeopleSoft, Inc. + 2,782,605 668,500 Saville Systems Ireland PLC ADR (Ireland) + 27,241,375 962,405 Security Dynamics Technologies, Inc. + 33,924,776 2,291,000 SEMA Group PLC (United Kingdom) 64,850,249 1,487,298 Synopsys, Inc. + 46,013,282 828,700 Vantive Corp. + 20,406,738 302,423 Viasoft, Inc. + 9,129,394 --------------- 1,754,032,989 Consumer Services (0.4%) - ------------------------------------------------------------------------------------------------------------ 411,000 Applied Graphics Technologies, Inc. 21,988,500 935,500 Hillenbrand Industries, Inc. 47,944,375 --------------- 69,932,875 Containers (0.1%) - ------------------------------------------------------------------------------------------------------------ 350,000 Temple Inland, Inc. 19,425,000 Correctional Facilities (--%) - ------------------------------------------------------------------------------------------------------------ 305,400 Wackenhut Corrections Corp. + 7,787,700 Cosmetics (--%) - ------------------------------------------------------------------------------------------------------------ 403,464 Thermolase Corp. + 3,732,042 292,948 ThermoLase Corp. Units + 4,833,642 --------------- 8,565,684 Education Services (0.1%) - ------------------------------------------------------------------------------------------------------------ 525,172 Apollo Group, Inc. Class A + 23,764,033 Electric Utilities (0.2%) - ------------------------------------------------------------------------------------------------------------ 1,473,526 CalEnergy, Inc. + 37,851,199 Electronic Components (0.2%) - ------------------------------------------------------------------------------------------------------------ 314,800 Metromedia Fiber Network, Inc. Class A + 7,830,650 345,877 Sanmina Corp. + 23,260,228 --------------- 31,090,878 Electronics and Electrical Equipment (2.9%) - ------------------------------------------------------------------------------------------------------------ 1,300,000 Applied Materials, Inc. + 42,656,250 2,883,600 General Electric Co. 223,479,000 2,250,000 Hewlett-Packard Co. 135,000,000 800,000 Micron Technology, Inc. 27,700,000 826,800 Sipex Corp. + 24,752,325 1,461,930 Solectron Corp. + 63,228,473 1,947,100 Thermo Instrument Systems, Inc. + 56,709,288 --------------- 573,525,336 Energy-Related (1.3%) - ------------------------------------------------------------------------------------------------------------ 705,354 AES Corp. + 30,197,968 5,663,826 Thermo Electron Corp. + 220,889,214 --------------- 251,087,182 Entertainment (0.2%) - ------------------------------------------------------------------------------------------------------------ 431,100 ITT Corp. + 34,488,000 Environmental Control (1.0%) - ------------------------------------------------------------------------------------------------------------ 250,700 Allied Waste Industries, Inc. + 5,202,025 1,500,000 Browning-Ferris Industries, Inc. 51,843,750 1,563,953 Philip Services Corp. (Canada) + 12,902,612 1,830,768 Republic Industries, Inc. + 38,331,705 206,746 U.S. Filter Corp. + 6,719,245 2,282,850 USA Waste Services, Inc. + 83,894,738 --------------- 198,894,075 Finance (5.0%) - ------------------------------------------------------------------------------------------------------------ 3,274,210 American Express Co. 274,010,449 6,087,027 Freddie Mac 270,872,702 4,205,160 Fannie Mae 259,668,630 1,421,900 Morgan Stanley, Dean Witter, Discover and Co. 83,003,413 2,862,542 TCF Financial Corp. 91,422,435 --------------- 978,977,629 Financial Services (3.0%) - ------------------------------------------------------------------------------------------------------------ 1,643,700 Associates First Capital Corp. 111,771,600 479,718 Concord EFS, Inc. + 12,352,739 885,057 FIRSTPLUS Financial Group, Inc. + 26,883,606 3,450,000 MBNA Corp. 107,165,625 1,106,700 Providian Financial Corp. 54,089,963 119,600 Star Banc Corp. 6,585,475 8,897,048 Tele-Communications TCI ventures Group Class A + 262,462,916 --------------- 581,311,924 Food and Beverages (2.2%) - ------------------------------------------------------------------------------------------------------------ 1,607,900 Coca-Cola Enterprises, Inc. 51,251,813 981,200 General Mills, Inc. 73,038,075 3,257,300 PepsiCo, Inc. 117,466,381 2,750,099 Sara Lee Corp. 150,052,277 2,636,700 Whitman Corp. 43,835,138 --------------- 435,643,684 Gaming (0.2%) - ------------------------------------------------------------------------------------------------------------ 1,033,900 MGM Grand, Inc. + 37,026,544 Gas Pipelines (0.1%) - ------------------------------------------------------------------------------------------------------------ 410,700 El Paso Natural Gas Co. 26,259,131 Gas Utilities (0.4%) - ------------------------------------------------------------------------------------------------------------ 1,085,100 Columbia Gas System, Inc. 82,331,963 Health Care (0.1%) - ------------------------------------------------------------------------------------------------------------ 391,300 Concentra Managed Care, Inc. 12,570,513 Health Care Information Systems (0.6%) - ------------------------------------------------------------------------------------------------------------ 2,162,958 HBO & Co. 113,149,740 Health Care Services (1.3%) - ------------------------------------------------------------------------------------------------------------ 611,293 ABR Information Services, Inc. + 15,053,090 438,200 CareMatrix Corp. + 11,119,325 2,996 Coram Healthcare Corp. + 8,052 2,836,698 HEALTHSOUTH Corp. + 63,648,411 123,400 Lincare Holdings, Inc. + 7,542,825 775,572 Renal Treatment Centers, Inc. + 24,866,777 909,500 Total Renal Care Holdings, Inc. + 22,112,219 2,316,939 United Healthcare Corp. 118,743,124 --------------- 263,093,823 Hospital Management (0.4%) - ------------------------------------------------------------------------------------------------------------ 3,575,696 Health Management Assoc., Inc. + 85,593,211 Insurance (1.4%) - ------------------------------------------------------------------------------------------------------------ 763,300 AFLAC Inc. 41,552,144 1,964,900 American General Corp. 110,771,238 562,500 American International Group, Inc. 62,050,781 902,000 AON Corp. 50,342,875 --------------- 264,717,038 Leisure (0.1%) - ------------------------------------------------------------------------------------------------------------ 294,280 Adidas AG 144A ADS (Germany) 21,261,730 138,600 Signature Resorts, Inc. + 3,378,375 --------------- 24,640,105 Lodging (0.7%) - ------------------------------------------------------------------------------------------------------------ 2,764,883 Extended Stay America, Inc. + 34,215,427 1,392,800 Prime Hospitality Corp. + 26,289,100 1,684,343 Promus Hotel Corp. + 76,111,249 --------------- 136,615,776 Machinery (0.1%) - ------------------------------------------------------------------------------------------------------------ 394,906 Sidel S.A. (France) 26,215,420 Medical Management Services (--%) - ------------------------------------------------------------------------------------------------------------ 105,200 NCS HealthCare, Inc. Class A + 2,722,050 Medical Supplies and Devices (3.4%) - ------------------------------------------------------------------------------------------------------------ 916,900 Bergen Brunswig Corp. Class A 41,776,256 796,247 Cytyc Corp. + 17,218,841 469,235 Henry Schein, Inc. + 15,484,755 939,830 Johnson & Johnson 62,909,871 614,000 Lifecore Biomedical, Inc. + [SECTION MARK] 11,359,000 1,568,234 Medtronic, Inc. 80,077,949 410,000 Minimed, Inc. + 15,990,000 1,569,695 Omnicare, Inc. 45,128,731 1,113,927 Physician Sales & Service, Inc. + 20,607,650 3,887,587 Stryker Corp. 143,597,745 739,115 Sybron International Corp. + 35,061,768 2,403,093 Thermo Cardiosystems, Inc. + 52,567,659 399,050 Thermotrex Corp. + 7,182,900 31,285 Trex Medical Corp. + 439,945 2,687,400 Tyco International Ltd. + 119,253,375 --------------- 668,656,445 Metals and Mining (0.2%) - ------------------------------------------------------------------------------------------------------------ 243,050 SGL Carbon AG (Germany) 30,558,957 Networking Equipment (0.7%) - ------------------------------------------------------------------------------------------------------------ 694,395 Cisco Systems, Inc. + 43,790,285 3,017,590 3Com Corp. + 99,769,069 --------------- 143,559,354 Nursing Homes (0.3%) - ------------------------------------------------------------------------------------------------------------ 1,390,800 Health Care & Retirement Corp. + 55,197,375 Office Equipment (0.4%) - ------------------------------------------------------------------------------------------------------------ 3,708,663 Viking Office Products, Inc. + 86,226,415 Oil Services (0.4%) - ------------------------------------------------------------------------------------------------------------ 501,736 BJ Services Co. + 30,386,387 1,869,150 Nabors Industries, Inc. 44,742,778 --------------- 75,129,165 Oil and Gas (3.6%) - ------------------------------------------------------------------------------------------------------------ 1,033,612 British Petroleum PLC ADR (United Kingdom) 83,011,964 1,578,250 Camco International, Inc. 86,310,547 900,000 Elf Aquitane ADR (France) 50,906,250 2,250,000 Halliburton Co. 101,109,375 2,368,600 National-Oilwell, Inc. + 62,767,900 1,849,516 Schlumberger Ltd. 136,286,210 2,548,900 Total Corp. ADR (France) 132,224,188 2,249,750 Varco International, Inc. + 46,119,875 --------------- 698,736,309 Paper and Forest Products (0.7%) - ------------------------------------------------------------------------------------------------------------ 1,741,200 Fort James Corp. 74,762,775 371,400 Unisource Worldwide, Inc. 5,269,238 1,000,000 Weyerhaeuser Co. 49,812,500 --------------- 129,844,513 Pharmaceuticals and Biotechnology (6.2%) - ------------------------------------------------------------------------------------------------------------ 700,000 American Home Products Corp. 66,806,250 1,792,000 Bristol-Myers Squibb Co. 178,640,000 994,300 Dura Pharmaceuticals, Inc. + 39,461,281 1,010,422 Elan Corp. PLC ADR (Ireland) + 52,478,793 950,982 Gilead Sciences, Inc. + 38,514,771 609,400 Lilly (Eli) & Co. 41,134,500 211,300 Medicis Pharmaceutical Corp. Class A + 9,825,450 155,500 Merck & Co., Inc. 18,232,375 100,250 Novartis AG ADR (Switzerland) 171,837,738 608,344 Parexel International Corp. + 20,987,868 1,491,000 Pfizer, Inc. 122,168,813 2,625,151 Pharmacia & Upjohn, Inc. 100,904,242 672,724 Quintiles Transnational Corp. + 25,605,557 1,094,500 Schering-Plough Corp. 79,214,438 809,985 Sepracor, Inc. + 28,450,723 1,701,000 Smithkline Beecham PLC ADR (United Kingdom) 107,269,313 280,000 Transkaryotic Therapies, Inc. (Malaysia) + 9,695,000 803,627 Vertex Pharmaceuticals, Inc. + 31,542,360 406,300 Warner-Lambert Co. 61,148,150 --------------- 1,203,917,622 Publishing (1.8%) - ------------------------------------------------------------------------------------------------------------ 500,000 Gannett Co., Inc. 30,250,000 1,100,000 Harcourt General, Inc. 58,643,750 500,000 McGraw-Hill, Inc. 34,906,250 488,935 Peterson Companies, Inc. Class A + 11,245,505 1,250,000 Tribune Co. 75,937,500 972,698 Wolters Kluwer N.V. (Netherlands) 131,611,416 --------------- 342,594,421 Railroads (0.3%) - ------------------------------------------------------------------------------------------------------------ 300,000 Burlington Northern Santa Fe Corp. 26,025,000 492,900 GATX Corp. 35,766,056 --------------- 61,791,056 Restaurants (0.7%) - ------------------------------------------------------------------------------------------------------------ 1,017,900 Cracker Barrel Old Country Store, Inc. 35,244,788 9,412,820 J.D. Wetherspoon PLC (United Kingdom) 44,535,346 798,900 Landry's Seafood Restaurants, Inc. + 17,675,663 826,410 Papa Johns International, Inc. + 28,614,446 1,006,400 PizzaExpress PLC (United Kingdom) 11,280,139 --------------- 137,350,382 Retail (11.7%) - ------------------------------------------------------------------------------------------------------------ 1,529,800 Albertsons, Inc. 72,952,338 1,566,825 Bed Bath & Beyond, Inc. + 62,085,441 1,055,493 Borders Group, Inc. 34,039,649 1,837,751 CompUSA, Inc. + 56,855,422 542,111 Consolidated Stores Corp. + 22,294,315 8,463,062 Costco Companies, Inc. + 367,085,314 1,460,520 CVS Corp. 95,755,343 1,800,000 Dayton Hudson Corp. 129,487,500 7,411,849 Dixons Group PLC (United Kingdom) 59,434,302 720,875 Dollar General Corp. 26,221,828 1,542,424 Dollar Tree Stores, Inc. 65,649,422 2,000,000 Federated Department Stores, Inc. + 84,750,000 1,683,834 Fred Meyer, Inc. + 62,091,379 2,083,100 General Nutrition Companies, Inc. + 75,121,794 1,634,600 Home Depot, Inc. (The) 98,586,813 2,732,717 Kohls Corp. + 189,582,242 1,450,000 Lowe's Cos., Inc. 73,315,625 358,200 Michaels Stores, Inc. 11,014,650 3,361,650 Office Depot, Inc. + 74,796,713 8,045,553 Officemax, Inc. + 117,666,213 1,100,000 Payless Shoesource, Inc. + 71,568,750 785,137 Payment Services, Inc. + 10,942,847 970,179 Petco Animal Supplies, Inc. + 23,890,658 430,000 Rexall Sundown, Inc. + 14,861,875 2,283,500 Rite Aid Corp. 142,576,031 5,181,100 Starbucks Corp. + 189,433,969 751,670 Williams-Sonoma, Inc. + 31,992,954 689,935 Wolverine World Wide, Inc. 18,628,245 --------------- 2,282,681,632 Satellite Services (0.5%) - ------------------------------------------------------------------------------------------------------------ 2,201,600 PanAmSat Corp. + 99,347,200 Semiconductors (2.9%) - ------------------------------------------------------------------------------------------------------------ 1,338,127 Altera Corp. + 45,830,850 1,805,047 Analog Devices, Inc. + 53,248,887 122,600 Galileo Technology Ltd. (Israel) + 4,566,850 356,934 Lattice Semiconductor Corp. + 16,463,581 2,353,563 Linear Technology Corp. 155,923,549 4,715,362 Maxim Integrated Products Inc. + 163,269,409 1,700,000 National Semiconductor Corp. + 47,812,500 1,400,000 Texas Instruments, Inc. 76,475,000 312,600 Xilinx, Inc. + 11,859,263 --------------- 575,449,889 Specialty Consumer Products (1.2%) - ------------------------------------------------------------------------------------------------------------ 846,593 Central Garden and Pet Co. + 26,032,735 1,701,497 Fastenal Co. 74,759,524 880,198 Luxottica Group S.P.A. ADR (Italy) 60,733,662 1,901,400 Mattel, Inc. 77,006,700 --------------- 238,532,621 Steel (0.1%) - ------------------------------------------------------------------------------------------------------------ 1,001,100 Lone Star Technologies, Inc. + 28,969,331 Supermarkets (0.1%) - ------------------------------------------------------------------------------------------------------------ 31,150 Carrefour Supermarche SA (France) 16,817,240 Telecommunication Equipment (0.7%) - ------------------------------------------------------------------------------------------------------------ 949,100 Advanced Fibre Communications + 28,235,725 57,375 Excel Switching Corp. + 1,104,469 756,428 P-Com, Inc. + 14,750,346 462,550 Premisys Communications, Inc. + 13,211,584 557,689 Qwest Communications International, Inc. + 39,526,208 152,700 Tekelec + 4,953,206 687,662 Tellabs, Inc. + 35,199,699 --------------- 136,981,237 Telecommunications (0.2%) - ------------------------------------------------------------------------------------------------------------ 344,400 RSL Communications, Inc. 7,662,900 589,000 Southern New England Telecommunications Corp. 38,358,625 --------------- 46,021,525 Telephone Services (1.5%) - ------------------------------------------------------------------------------------------------------------ 460,945 Intermedia Communications, Inc. + 28,348,118 1,321,600 McLeod, Inc. Class A + 45,512,600 81,400 NEXTLINK Communications, Inc. Class A + 2,024,825 1,052,100 SBC Communications, Inc. 81,800,775 2,176,000 Sprint Corp. 129,200,000 517,180 Tel-Save Holdings, Inc. + 12,283,025 --------------- 299,169,343 Telephone Utilities (0.5%) - ------------------------------------------------------------------------------------------------------------ 1,523,400 American Telephone & Telegraph Co. 95,402,925 Trucking (0.2%) - ------------------------------------------------------------------------------------------------------------ 1,300,000 Ryder System, Inc. 43,550,000 Wireless Communications (1.1%) - ------------------------------------------------------------------------------------------------------------ 558,080 Clearnet Communications, Inc. Class A, (Canada) + 6,627,200 6,384,009 NEXTEL Communications, Inc. Class A + 174,363,246 683,419 Teleport Communications Group Inc. Class A + 38,143,323 --------------- 219,133,769 --------------- Total Common Stocks (cost $13,539,463,472) $18,837,956,043 CONVERTIBLE BONDS AND NOTES (--%) * (cost $8,241,000) PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------ $ 8,000,000 Signature Resorts, Inc. cv. sub. notes 5 3/4s, 2007 $ 8,160,000 SHORT-TERM INVESTMENTS (3.6%) * PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------ $25,000,000 American Home Products effective yield of 5.68s, February 9, 1998 $ 24,964,500 25,000,000 Credit Suisse First Boston effective yield of 5.71s, March 4, 1998 24,877,076 21,000,000 Freddie Mac effective yield of 5.58s, March 9, 1998 20,879,565 20,000,000 Fannie Mae effective yield of 5.66s, February 18, 1998 19,943,400 50,000,000 Fannie Mae effective yield of 5.62s, March 10, 1998 49,703,389 25,000,000 Fannie Mae effective yield of 5.59s, March 24, 1998 24,798,139 25,000,000 Fannie Mae effective yield of 5.57s, April 28, 1998 24,663,479 25,000,000 Ford Motor Credit Co. effective yield of 5.72s, March 23, 1998 24,797,417 25,000,000 General Electric Capital Corp. effective yield of 5 3/4s, February 23, 1998 24,908,160 50,000,000 General Motors Acceptance Corp effective yield of 5 1/2s, February 17, 1998 49,870,139 50,000,000 Morgan (J.P) & Co Inc. effective yield of 5.67s, April 17, 1998 49,401,500 50,000,000 Lloyds Bank PLC effective yield of 5.42s, April 7, 1998 49,503,167 25,000,000 Merrill Lynch & Co Inc effective yield of 5.71s, March 11, 1998 24,845,354 30,000,000 Merrill Lynch & Co Inc effective yield of 5.45s, April 27, 1998 29,609,417 36,467,000 Metlife Funding Inc. effective yield of 5.73s, March 25, 1998 36,159,370 25,000,000 Metlife Funding Inc. effective yield of 5.72s, February 12, 1998 24,952,333 20,000,000 National Rural Utilities effective yield of 5.67s, March 24, 1998 19,836,200 30,000,000 Preferred Receivables Funding effective yield of 5.87s, February 5, 1998 29,975,542 50,000,000 Societe Generale N.A. Inc 5.72s, March 16, 1998 49,650,444 91,000,000 Interest in $750,000,000 joint repurchase agreement dated January 30, 1998 with Goldman, Sachs & Co. due February 2, 1998 with respect to various U.S. Treasury obligations -- maturity value of $91,042,391 for an effective yield of 5.59% 91,028,261 --------------- Total Short-Term Investments (cost $694,366,852) $ 694,366,852 - ------------------------------------------------------------------------------------------------------------ Total Investments (cost $14,242,071,324) *** $19,540,482,895 - ------------------------------------------------------------------------------------------------------------ * Percentages indicated are based on net assets of $19,532,129,462. *** The aggregate identified cost on a tax basis is $14,280,505,822, resulting in gross unrealized appreciation and depreciation of $5,732,351,712 and $472,374,639, respectively, or net unrealized appreciation of $5,259,977,073. + Non-income-producing security. [SECTIONMARK] Affiliated Companies. (Note 5) 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 or ADS after the name of a foreign holding stands for American Depository Receipts or American Depository Shares, respectively, 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, 1998 (Unaudited) Assets - --------------------------------------------------------------------------------------------------- Investments in securities, at value (identified cost $14,242,071,324) (Note 1) $19,540,482,895 - --------------------------------------------------------------------------------------------------- Cash 215,425 - --------------------------------------------------------------------------------------------------- Dividends, interest, and other receivables 9,577,857 - --------------------------------------------------------------------------------------------------- Receivable for shares of the fund sold 41,221,470 - --------------------------------------------------------------------------------------------------- Receivable for securities sold 128,089,035 - --------------------------------------------------------------------------------------------------- Total assets 19,719,586,682 Liabilities - --------------------------------------------------------------------------------------------------- Payable for securities purchased 124,349,331 - --------------------------------------------------------------------------------------------------- Payable for shares of the fund repurchased 23,918,591 - --------------------------------------------------------------------------------------------------- Payable for compensation of Manager (Note 2) 23,100,089 - --------------------------------------------------------------------------------------------------- Payable for investor servicing and custodian fees (Note 2) 7,229,454 - --------------------------------------------------------------------------------------------------- Payable for compensation of Trustees (Note 2) 100,039 - --------------------------------------------------------------------------------------------------- Payable for administrative services (Note 2) 4,892 - --------------------------------------------------------------------------------------------------- Payable for distribution fees (Note 2) 7,632,742 - --------------------------------------------------------------------------------------------------- Other accrued expenses 1,122,082 - --------------------------------------------------------------------------------------------------- Total liabilities 187,457,220 - --------------------------------------------------------------------------------------------------- Net assets $19,532,129,462 Represented by - --------------------------------------------------------------------------------------------------- Paid-in capital (Notes 1 and 4) $13,942,790,974 - --------------------------------------------------------------------------------------------------- Accumulated net investment loss (Note 1) (44,571,665) - --------------------------------------------------------------------------------------------------- Accumulated net realized gain on investments and foreign currency transactions (Note 1) 335,521,993 - --------------------------------------------------------------------------------------------------- Net unrealized appreciation of investments and assets and liabilities in foreign currencies 5,298,388,160 - --------------------------------------------------------------------------------------------------- Total -- Representing net assets applicable to capital shares outstanding $19,532,129,462 Computation of net asset value and offering price - --------------------------------------------------------------------------------------------------- Net asset value and redemption price per class A share ($11,790,349,439 divided by 620,337,382 shares) $19.01 - --------------------------------------------------------------------------------------------------- Offering price per class A share (100/94.25 of $19.01)* $20.17 - --------------------------------------------------------------------------------------------------- Net asset value and offering price per class B share ($6,213,756,723 divided by 345,496,105 shares)** $17.99 - --------------------------------------------------------------------------------------------------- Net asset value and redemption price per class M share ($271,586,209 divided by 14,540,829 shares) $18.68 - --------------------------------------------------------------------------------------------------- Offering price per class M share (100/96.50 of $18.68)* $19.36 - --------------------------------------------------------------------------------------------------- Net asset value, offering price and redemption price per class Y share ($1,256,437,091 divided by 65,263,702 shares) $19.25 - --------------------------------------------------------------------------------------------------- * 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, 1998 (Unaudited) Investment income: - -------------------------------------------------------------------------------------------------- Dividends (net of foreign tax of $13,198) $ 55,992,888 - -------------------------------------------------------------------------------------------------- Interest 13,559,102 - -------------------------------------------------------------------------------------------------- Total investment income 69,551,990 Expenses: - -------------------------------------------------------------------------------------------------- Compensation of Manager (Note 2) 45,633,014 - -------------------------------------------------------------------------------------------------- Investor servicing and custodian fees (Note 2) 21,584,214 - -------------------------------------------------------------------------------------------------- Compensation of Trustees (Note 2) 125,090 - -------------------------------------------------------------------------------------------------- Administrative services (Note 2) 29,518 - -------------------------------------------------------------------------------------------------- Distribution fees -- Class A (Note 2) 14,390,326 - -------------------------------------------------------------------------------------------------- Distribution fees -- Class B (Note 2) 29,665,030 - -------------------------------------------------------------------------------------------------- Distribution fees -- Class M (Note 2) 873,203 - -------------------------------------------------------------------------------------------------- Reports to shareholders 286,526 - -------------------------------------------------------------------------------------------------- Registration fees 450,265 - -------------------------------------------------------------------------------------------------- Auditing 59,592 - -------------------------------------------------------------------------------------------------- Legal 58,142 - -------------------------------------------------------------------------------------------------- Postage 1,613,934 - -------------------------------------------------------------------------------------------------- Other 929,187 - -------------------------------------------------------------------------------------------------- Total expenses 115,698,041 - -------------------------------------------------------------------------------------------------- Expense reduction (Note 2) (1,592,137) - -------------------------------------------------------------------------------------------------- Net expenses 114,105,904 - -------------------------------------------------------------------------------------------------- Net investment loss (44,553,914) - -------------------------------------------------------------------------------------------------- Net realized gain on investments (Notes 1, 3, and 5) (including realized loss of $2,133,907 on sales of investments in affiliated issuers) 1,054,190,523 - -------------------------------------------------------------------------------------------------- Net realized loss on foreign currency transactions (Notes 1 and 3) (11,891) - -------------------------------------------------------------------------------------------------- Net unrealized appreciation of assets and liabilities in foreign currencies during the period 19,390 - -------------------------------------------------------------------------------------------------- Net unrealized depreciation of investments during the period (296,200,251) - -------------------------------------------------------------------------------------------------- Net gain on investments 757,997,771 - -------------------------------------------------------------------------------------------------- Net increase in net assets resulting from operations $ 713,443,857 - -------------------------------------------------------------------------------------------------- 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 1998* 1997 -------------------------------------- Increase in net assets - ---------------------------------------------------------------------------------------------------------------------- Operations: - ---------------------------------------------------------------------------------------------------------------------- Net investment loss $ (44,553,914) $ (32,079,897) - ---------------------------------------------------------------------------------------------------------------------- Net realized gain on investments and foreign currency transactions 1,054,178,632 574,607,164 - ---------------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments and assets and liabilities in foreign currencies (296,180,861) 3,610,018,684 - ---------------------------------------------------------------------------------------------------------------------- Net increase in net assets resulting from operations 713,443,857 4,152,545,951 - ---------------------------------------------------------------------------------------------------------------------- Distributions to shareholders: - ---------------------------------------------------------------------------------------------------------------------- From net realized gain on investments Class A (699,632,778) (548,605,542) - ---------------------------------------------------------------------------------------------------------------------- Class B (385,914,127) (281,238,919) - ---------------------------------------------------------------------------------------------------------------------- Class M (15,957,070) (8,171,341) - ---------------------------------------------------------------------------------------------------------------------- Class Y (73,035,441) (52,119,074) - ---------------------------------------------------------------------------------------------------------------------- Increase from capital share transactions (Note 4) 1,900,834,668 3,295,035,279 - ---------------------------------------------------------------------------------------------------------------------- Total increase in net assets 1,439,739,109 6,557,446,354 Net assets - ---------------------------------------------------------------------------------------------------------------------- Beginning of period 18,092,390,353 11,534,943,999 - ---------------------------------------------------------------------------------------------------------------------- End of period (including accumulated net investment loss of $44,571,665 and $17,751, respectively) $19,532,129,462 $18,092,390,353 - ---------------------------------------------------------------------------------------------------------------------- * 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 January 31 operating performance (Unaudited Year ended July 31 - ------------------------------------------------------------------------------------------------------------------------------------ 1998 1997 1996 1995 1994 1993 - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $19.49 $15.73 $14.42 $11.19 $11.02 $9.67 - ------------------------------------------------------------------------------------------------------------------------------------ Investment operations - ------------------------------------------------------------------------------------------------------------------------------------ Net investment income (loss) (.02)(d) --(d) (.02)(d) .02 (.02) (.02) - ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) on investments .75 4.85 2.19 3.72 .65 1.89 - ------------------------------------------------------------------------------------------------------------------------------------ Total from investment operations .73 4.85 2.17 3.74 .63 1.87 - ------------------------------------------------------------------------------------------------------------------------------------ Less distributions: - ------------------------------------------------------------------------------------------------------------------------------------ From net realized gain on investments (1.21) (1.09) (.86) (.51) (.46) (.52) - ------------------------------------------------------------------------------------------------------------------------------------ Total distributions (1.21) (1.09) (.86) (.51) (.46) (.52) - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $19.01 $19.49 $15.73 $14.42 $11.19 $11.02 - ------------------------------------------------------------------------------------------------------------------------------------ Ratios and supplemental data - ------------------------------------------------------------------------------------------------------------------------------------ Total investment return at net asset value (%)(a) 3.98* 32.22 15.49 34.72 5.49 19.69 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $11,790,349 $11,158,273 $7,332,248 $4,895,180 $3,051,878 $2,403,332 - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of expenses to average net assets (%)(b) .50* 1.02 1.03 1.07 1.10 1.12 - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of net investment income (loss) to average net assets (%) (.12)* -- (.10) .17 (.18) (.14) - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover (%) 32.42* 59.77 57.92 65.43 57.74 64.62 - ------------------------------------------------------------------------------------------------------------------------------------ Average commission rate paid (c) $0.0510 $0.0546 - ------------------------------------------------------------------------------------------------------------------------------------ + Commencement of operations. * Not annualized. (a) Total investment return assumes dividend reinvestment and does not reflect the effect of sales charges. (b) The ratio of expenses to average net assets for the period ended July 31, 1996 and thereafter, includes amounts paid through brokerage services and expense offset arrangements. Prior period ratios exclude these amounts (Note 2). (c) Average commission rate paid on security trades is requried for fiscal periods beginning on or after September 1, 1995. (d) Per share net investment income (loss) has been determined on the basis of weighted average number of shares outstanding during the period.
Financial highlights (For a share outstanding throughout the period) CLASS B - ------------------------------------------------------------------------------------------------------------------------------------ Six months ended Per-share January 31 operating performance (Unaudited) Year ended July 31 - ------------------------------------------------------------------------------------------------------------------------------------ 1998 1997 1996 1995 1994 1993 - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $18.57 $15.15 $14.01 $10.97 $10.89 $9.63 - ------------------------------------------------------------------------------------------------------------------------------------ Investment operations - ------------------------------------------------------------------------------------------------------------------------------------ Net investment income (loss) (.09)(d) (.12)(d) (.13)(d) (.06) (.05) (.03) - ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) on investments .72 4.63 2.13 3.61 .59 1.81 - ------------------------------------------------------------------------------------------------------------------------------------ Total from investment operations .63 4.51 2.00 3.55 .54 1.78 - ------------------------------------------------------------------------------------------------------------------------------------ Less distributions: - ------------------------------------------------------------------------------------------------------------------------------------ From net realized gain on investments (1.21) (1.09) (.86) (.51) (.46) (.52) - ------------------------------------------------------------------------------------------------------------------------------------ Total distributions (1.21) (1.09) (.86) (.51) (.46) (.52) - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $17.99 $18.57 $15.15 $14.01 $10.97 $10.89 - ------------------------------------------------------------------------------------------------------------------------------------ Ratios and supplemental data - ------------------------------------------------------------------------------------------------------------------------------------ Total investment return at net asset value (%)(a) 3.63* 31.17 14.70 33.65 4.71 18.79 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $6,213,757 $5,664,375 $3,405,318 $1,870,370 $911,069 $408,361 - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of expenses to average net assets (%)(b) .88* 1.77 1.78 1.82 1.84 1.87 - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of net investment income (loss) to average net assets (%) (.50)* (.75) (.85) (.58) (.91) (.91) - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover (%) 32.42* 59.77 57.92 65.43 57.74 64.62 - ------------------------------------------------------------------------------------------------------------------------------------ Average commission rate paid (c) $0.0510 $0.0546 - ------------------------------------------------------------------------------------------------------------------------------------ + Commencement of operations. * Not annualized. (a) Total investment return assumes dividend reinvestment and does not reflect the effect of sales charges. (b) The ratio of expenses to average net assets for the period ended July 31, 1996 and thereafter, includes amounts paid through brokerage services and expense offset arrangements. Prior period ratios exclude these amounts (Note 2). (c) Average commission rate paid on security trades is requried for fiscal periods beginning on or after September 1, 1995. (d) Per share net investment income (loss) has been determined on the basis of weighted average number of shares outstanding during the period.
Financial highlights (For a share outstanding throughout the period) CLASS M - ------------------------------------------------------------------------------------------------------------------------------------ Six months ended For the period Per-share January 31 Dec. 1, 1994+ operating performance (Unaudited) Year ended July 31 to July 31 - ------------------------------------------------------------------------------------------------------------------------------------ 1998 1997 1996 1995 - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $19.22 $15.60 $14.37 $11.79 - ------------------------------------------------------------------------------------------------------------------------------------ Investment operations - ------------------------------------------------------------------------------------------------------------------------------------ Net investment income (loss) (.07)(d) (.08)(d) (.09)(d) (.01) - ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) on investments .74 4.79 2.18 3.10 - ------------------------------------------------------------------------------------------------------------------------------------ Total from investment operations .67 4.71 2.09 3.09 - ------------------------------------------------------------------------------------------------------------------------------------ Less distributions: - ------------------------------------------------------------------------------------------------------------------------------------ From net realized gain on investments (1.21) (1.09) (.86) (.51) - ------------------------------------------------------------------------------------------------------------------------------------ Total distributions (1.21) (1.09) (.86) (.51) - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $18.68 $19.22 $15.60 $14.37 - ------------------------------------------------------------------------------------------------------------------------------------ Ratios and supplemental data - ------------------------------------------------------------------------------------------------------------------------------------ Total investment return at net asset value (%)(a) 3.72* 31.57 14.97 27.42* - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $271,586 $208,656 $87,782 $19,004 - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of expenses to average net assets (%)(b) .75* 1.52 1.50 1.06* - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of net investment income (loss) to average net assets (%) (.37)* (.50) (.57) (.24)* - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover (%) 32.42* 59.77 57.92 65.43 - ------------------------------------------------------------------------------------------------------------------------------------ Average commission rate paid (c) $0.0510 $0.0546 - ------------------------------------------------------------------------------------------------------------------------------------ + Commencement of operations. * Not annualized. (a) Total investment return assumes dividend reinvestment and does not reflect the effect of sales charges. (b) The ratio of expenses to average net assets for the period ended July 31, 1996 and thereafter, includes amounts paid through brokerage services and expense offset arrangements. Prior period ratios exclude these amounts (Note 2). (c) Average commission rate paid on security trades is requried for fiscal periods beginning on or after September 1, 1995. (d) Per share net investment income (loss) has been determined on the basis of weighted average number of shares outstanding during the period.
Financial highlights (For a share outstanding throughout the period) CLASS Y - ------------------------------------------------------------------------------------------------------------------------------------ Six months ended For the period Per-share January 31 March 31, 1994+ operating performance (Unaudited) Year ended July 31 to July 31 - ------------------------------------------------------------------------------------------------------------------------------------ 1998 1997 1996 1995 1994 - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $19.70 $15.85 $14.48 $11.22 $11.24 - ------------------------------------------------------------------------------------------------------------------------------------ Investment operations - ------------------------------------------------------------------------------------------------------------------------------------ Net investment income (loss) --(d) .04(d) .02(d) .03 -- - ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) on investments .76 4.90 2.21 3.74 (.02) - ------------------------------------------------------------------------------------------------------------------------------------ Total from investment operations .76 (.02) - ------------------------------------------------------------------------------------------------------------------------------------ Less distributions: - ------------------------------------------------------------------------------------------------------------------------------------ From net realized gain on investments (1.21) (1.09) (.86) (.51) -- - ------------------------------------------------------------------------------------------------------------------------------------ Total distributions (1.21) (1.09) (.86) (.51) -- - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $19.25 $19.70 $15.85 $14.48 $11.22 - ------------------------------------------------------------------------------------------------------------------------------------ Ratios and supplemental data - ------------------------------------------------------------------------------------------------------------------------------------ Total investment return at net asset value (%)(a) 4.09* 32.56 15.85 34.90 (0.18)* - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $1,256,437 $1,061,087 $709,595 $351,817 $82,102 - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of expenses to average net assets (%)(b) .38* .77 .77 .83 .31* - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of net investment income (loss) to average net assets (%) --* .25 .15 .39 (.05)* - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover (%) 32.42* 59.77 57.92 65.43 57.74 - ------------------------------------------------------------------------------------------------------------------------------------ Average commission rate paid (c) $0.0510 $0.0546 - ------------------------------------------------------------------------------------------------------------------------------------ + Commencement of operations. * Not annualized. (a) Total investment return assumes dividend reinvestment and does not reflect the effect of sales charges. (b) The ratio of expenses to average net assets for the period ended July 31, 1996 and thereafter, includes amounts paid through brokerage services and expense offset arrangements. Prior period ratios exclude these amounts (Note 2). (c) Average commission rate paid on security trades is requried for fiscal periods beginning on or after September 1, 1995. (d) Per share net investment income (loss) has been determined on the basis of weighted average number of shares outstanding during the period.
Notes to financial statements January 31, 1998 (Unaudited) Note 1 Significant accounting policies Putnam Voyager Fund (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 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 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 an other accounts managed by affiliates of Putnam Management. 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. 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 and certain other accounts managed by Putnam Management. 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. 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 gains and losses are included with the net realized and unrealized gain or loss on investments. Net realized gains and losses on foreign currency transactions represent net exchange gains or losses on closed forward currency contracts, disposition of foreign currencies and the difference between the amount of investment income and foreign withholding taxes recorded on the fund's books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized appreciation and depreciation of assets and liabilities in foreign currencies arise from changes in the value of open forward currency contracts and assets and liabilities other than investments at the period end, resulting from changes in the exchange rate. F) Line of credit The fund has entered into a committed line of credit with certain banks. This line of credit agreement includes restrictions that the fund maintain an asset coverage ratio of at least 300% and borrowings must not exceed prospectus limitations. For the period ended January 31, 1998, the fund had no borrowings against the line of credit. 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 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, 0.50% of the next $5 billion, 0.475% of the next $5 billion, 0.455% of the next $5 billion, 0.44% of the next $5 billion, and 0.43% thereafter. The fund reimburses Putnam Management an allocated amount for the compensation and related expenses of certain officers of the fund and their staff who provide administrative services to the fund. The aggregate amount of all such reimbursements is determined annually by the Trustees. Custodial functions for the fund's assets are provided by Putnam Fiduciary Trust Company (PFTC), a subsidiary of Putnam Investments, Inc. Investor servicing agent functions are provided by Putnam Investor Services, a division of PFTC. For the six months ended January 31, 1998, fund expenses were reduced by $1,592,137 under expense offset arrangements with PFTC. Investor servicing and custodian fees reported in the Statement of operations exclude these credits. The fund could have invested a portion of the assets utilized in connection with the expense offset arrangements in an income producing asset if it had not entered into such arrangements. Each Trustee of the fund receives an annual Trustee fee, of which $13,060 has been allocated to the fund, and an additional fee for each Trustee's meeting attended. Trustees who are not interested persons of Putnam Management and who serve on committees of the Trustees receive additional fees for attendance at certain committee meetings. The fund has adopted a Trustee Fee Deferral Plan (the "Deferral Plan") which allows the Trustees to defer the receipt of all or a portion of Trustees Fees payable on or after July 1, 1995. The deferred fees remain in the fund and are invested in certain Putnam funds until distribution in accordance with the Deferral Plan. The fund has adopted an unfunded noncontributory defined benefit pension plan (the "Pension Plan") covering all Trustees of the fund who have served as Trustee for at least five years. Benefits under the Pension Plan are equal to 50% of the Trustee's average total retainer and meeting fees for the three years preceding retirement. Pension expense for the fund is included in Compensation of trustees in the Statement of operations. Accrued pension liability is included in Payable for compensation of Trustees in the Statement of assets and liabilities. The fund has adopted distribution plans (the "Plans") with respect to its class 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 currently limit payment by the fund to 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, 1998, Putnam Mutual Funds Corp., acting as underwriter received net commissions of $2,592,061 and $64,139 from the sale of class A and class M shares, respectively and received $3,353,985 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, 1998, Putnam Mutual Funds Corp., acting as underwriter received $29,148 on class A redemptions. Note 3 Purchase and sales of securities During the six months ended January 31, 1998, purchases and sales of investment securities other than short-term investments aggregated $6,112,945,824 and $5,902,267,623, 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, 1998, there was an unlimited number of shares of beneficial interest authorized. Transactions in capital shares were as follows: Six months ended January 31, 1998 - ------------------------------------------------------------ Class A Shares Amount - ------------------------------------------------------------ Shares sold 82,978,374 $1,611,681,150 - ------------------------------------------------------------ Shares issued in connection with reinvestment of distributions 37,006,049 676,469,775 - ------------------------------------------------------------ 119,984,423 2,288,150,925 Shares repurchased (72,212,691) (1,406,542,975) - ------------------------------------------------------------ Net increase 47,771,732 $881,607,950 - ------------------------------------------------------------ Year ended July 31, 1997 - ------------------------------------------------------------ Class A Shares Amount - ------------------------------------------------------------ Shares sold 234,017,903 $3,953,449,438 - ------------------------------------------------------------ Shares issued in connection with reinvestment of distributions 32,563,535 527,855,140 - ------------------------------------------------------------ 266,581,438 4,481,304,578 Shares repurchased (160,170,443) (2,692,322,364) - ------------------------------------------------------------ Net increase 106,410,995 $1,788,982,214 - ------------------------------------------------------------ Six months ended January 31, 1998 - ------------------------------------------------------------ Class B Shares Amount - ------------------------------------------------------------ Shares sold 42,066,932 $777,086,586 - ------------------------------------------------------------ Shares issued in connection with reinvestment of distributions 20,773,118 359,581,843 - ------------------------------------------------------------ 62,840,050 1,136,668,429 Shares repurchased (22,307,562) (411,084,107) - ------------------------------------------------------------ Net increase 40,532,488 $725,584,322 - ------------------------------------------------------------ Year ended July 31, 1997 - ------------------------------------------------------------ Class B Shares Amount - ------------------------------------------------------------ Shares sold 105,067,672 $1,702,505,550 - ------------------------------------------------------------ Shares issued in connection with reinvestment of distributions 16,881,432 261,999,265 - ------------------------------------------------------------ 121,949,104 1,964,504,815 Shares repurchased (41,818,952) (673,171,844) - ------------------------------------------------------------ Net increase 80,130,152 $1,291,332,971 - ------------------------------------------------------------ Six months ended January 31, 1998 - ------------------------------------------------------------ Class M Shares Amount - ------------------------------------------------------------ Shares sold 4,657,881 $89,953,929 - ------------------------------------------------------------ Shares issued in connection with reinvestment of distributions 842,424 15,146,869 - ------------------------------------------------------------ 5,500,305 105,100,798 Shares repurchased (1,816,193) (34,858,904) - ------------------------------------------------------------ Net increase 3,684,112 $70,241,894 - ------------------------------------------------------------ Year ended July 31, 1997 - ------------------------------------------------------------ Class M Shares Amount - ------------------------------------------------------------ Shares sold 7,188,244 $121,126,210 - ------------------------------------------------------------ Shares issued in connection with reinvestment of distributions 474,478 7,605,878 - ------------------------------------------------------------ 7,662,722 128,732,088 Shares repurchased (2,432,366) (40,629,278) - ------------------------------------------------------------ Net increase 5,230,356 $88,102,810 - ------------------------------------------------------------ Six months ended January 31, 1998 - ------------------------------------------------------------ Class Y Shares Amount - ------------------------------------------------------------ Shares sold 14,550,764 $289,896,639 - ------------------------------------------------------------ Shares issued in connection with reinvestment of distributions 3,945,854 73,035,441 - ------------------------------------------------------------ 18,496,618 362,932,080 Shares repurchased (7,099,831) (139,531,578) - ------------------------------------------------------------ Net increase 11,396,787 $223,400,502 - ------------------------------------------------------------ Year ended July 31, 1997 - ------------------------------------------------------------ Class Y Shares Amount - ------------------------------------------------------------ Shares sold 31,072,579 $513,070,605 - ------------------------------------------------------------ Shares issued in connection with reinvestment of distributions 3,185,837 52,119,074 - ------------------------------------------------------------ 34,258,416 565,189,679 Shares repurchased (25,162,721) (438,572,395) - ------------------------------------------------------------ Net increase 9,095,695 $126,617,284 - ------------------------------------------------------------
Note 5 Transactions with Affiliated Issuers Transactions during the year with companies in which the fund owns at least 5% of the voting securities were as follows: Purchase Sales Dividend Market Affiliates cost cost Income Value - ------------------------------------------------------------------------------------------------ Name of Affiliates - ------------------------------------------------------------------------------------------------ Geoworks $ -- 2,730,587 $ -- $ 3,826,409 Industri-Matematik Intl Corp. 22,132,472 -- -- 28,707,000 LifeCore Biomedical, Inc. -- -- -- 11,359,000 Petco Animal Supplies, Inc. -- -- -- 23,890,658 Starbucks Corp. 24,342,607 -- -- 189,433,969 TMP Worldwide, Inc. -- -- -- 10,768,041 WestWood One, Inc. -- -- -- 67,502,500 - ------------------------------------------------------------------------------------------------- Totals $46,475,079 $2,730,587 $ -- $335,487,577 - ------------------------------------------------------------------------------------------------- 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 Paul L. Joskow Elizabeth T. Kennan Lawrence J. Lasser John H. Mullin III Robert E. Patterson Donald S. Perkins George Putnam, III A.J.C. Smith W. Thomas Stephens W. Nicholas Thorndike OFFICERS George Putnam President Charles E. Porter Executive Vice President Patricia C. Flaherty Senior Vice President John D. Hughes Senior Vice President and Treasurer Lawrence J. Lasser Vice President Gordon H. Silver Vice President John J. Morgan, Jr. Vice President Ian C. Ferguson Vice President Brett C. Browchuk 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 Michael E. Nance Vice President and Fund Manager Michael Stack Vice President and Fund Manager William N. Shiebler Vice President John R. Verani 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. 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 the 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 - -------------------- SA016 40520-007/883/530 3/98 PUTNAM INVESTMENTS [SCALE LOGO OMITTED] - ------------------------------------------------------------------------ Putnam Voyager Fund Supplement to Report dated 1/31/98 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 report. RESULTS AT A GLANCE - ------------------------------------------------------------------------ Total return for periods ended 1/31/98: NAV 4.09% 1 year 20.69 Five years 139.15 Annual average 19.05 10 years 474.38 Annual average 19.10 Life of fund Annual average 14.09 (since class A inception, 4/1/69) - ------------------------------------------------------------------------ Share value: NAV 7/31/97 $19.70 1/31/98 $19.25 - ------------------------------------------------------------------------ Distributions: No. 1 Income 0.00 Capital gains Total Short term .096 1.207 Long term 1.111 - ------------------------------------------------------------------------ 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-----