-----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, VUtF8KnfTUZisywnZ/+y/W9UG088nF8xKzfCeuWEz5Nx0gaqCYxRYugNVvFMNSEo W6wVuNcaaXBtbwvSK19uaQ== 0000928816-99-000079.txt : 19990319 0000928816-99-000079.hdr.sgml : 19990319 ACCESSION NUMBER: 0000928816-99-000079 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990131 FILED AS OF DATE: 19990318 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: 99568219 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 ON PERFORMANCE AND OUTLOOK 1-31-99 [LOGO: BOSTON * LONDON * TOKYO] Fund highlights * Putnam Voyager Fund's risk-adjusted returns have attracted the attention of independent rating agency Morningstar. The research firm gave the fund's class A shares a 4-star rating -- out of a possible 5 -- for overall performance based on the fund's average annual returns for the 3-, 5-, and 10-year periods ended January 31, 1999. Of the 2,859 domestic equity funds rated, only 22.5% received 4 stars.* * "While short-term volatility may be in store, over the longer term we think growth stock valuations will continue to rise." -- Roland W. Gillis, manager Putnam Voyager Fund CONTENTS 4 Report from Putnam Management 9 Fund performance summary 12 Portfolio holdings 21 Financial statements * Morningstar ratings reflect risk-adjusted performance through 1/31/99 and are subject to change every month. Morningstar ratings are calculated from a fund's 3-, 5-, and 10-year returns (with fee adjustments) in excess of 90-day Treasury bill returns and a risk factor that reflects performance below 90-day Treasury bill returns. For 3-, 5-, and 10-year performance, the fund received 3, 3, and 4 stars, respectively. There were 2,859, 1,734, and 741 equity funds rated. 10% of the funds in an investment category receive 5 stars; the next 22.5% receive 4 stars. Performance of other share classes will vary. Past performance is not indicative of future results. From the Chairman [GRAPHIC OMITTED: PHOTO OF GEORGE PUTNAM] [copyright] Karsh, Ottawa Dear Shareholder: Putnam Voyager Fund continued to produce above-average results for investors seeking a more aggressive pattern of capital appreciation, handily outperforming its benchmark Russell Midcap Growth Index at net asset value for the first half of fiscal 1999. You will find more details in the following report from management and the performance tables. In this summer's volatile equity market, stock selection became a key differentiator as well as the major impetus for the fund's continued strong performance. As you might expect, much of this strength came from companies in the technology and communications areas. Consumer optimism also fueled growth in the fund's retailing stocks. As your fund's managers view prospects for the fiscal year's second half, they see further market volatility as investors digest the tremendous technological and social changes that are now occurring on a global scale. But overall, they remain optimistic about your fund's prospects both over the near term and for the long haul. Respectfully yours, /S/GEORGE PUTNAM George Putnam Chairman of the Trustees March 17, 1999 Report from the Fund Managers Roland W. Gillis Charles H. Swanberg Robert R. Beck Michael P. Stack Michael E. Nance In the past six months, investors witnessed a continuation of the volatility that has plagued financial markets since the dawn of the Asian economic crisis. Sparked by a near financial and political meltdown in Russia, major market indexes fell to sobering lows before recovering their losses in the fourth quarter of 1998. Putnam Voyager Fund emerged from the turmoil relatively unscathed, having benefited from strong stock selection in some of the most rapidly growing segments of the economy. The fund's class A shares provided a 16.19% total return at net asset value (9.53% at public offering price) for the six months ended January 31, 1999, compared with 13.38% for the Russell Midcap Growth Index, the fund's benchmark. For the 12 months ended January 31, 1999, the fund's class A shares provided a robust 30.55% total return at net asset value and 23.05% at public offering price. For more detailed performance information, including returns for other share classes, please see pages 9 and 10. * THE BATTLE FOR BANDWIDTH The U.S. economy is undergoing a tremendous change, sparked by the integration of technologies such as the Internet and cellular telephones. Consumers and businesses are changing the way they receive information, communicate with one another, and find their sources of entertainment. Entire industries are now consolidating or altering their principal lines of business in order to profit from the vast potential offered by online and other high-tech services. The fund's strategy has been to focus on companies of all sizes that we believe are benefiting from the convergence of these technologies. For example, the growth of the Internet has created an explosion in the volume of data moving through communications networks (data traffic is now greater than voice traffic), forcing telecommunications companies to increase the capacity of their networks and seek more advanced switching technology. Consequently, the fund's telecommunications and related equipment holdings experienced dramatic growth during the period. Qwest Communications International increased in value by 48% for the six months ended January 31, 1999, while Ascend Communications was up 96%, and Metromedia Fiber gained an astounding 227%. Cable companies also produced attractive returns for the fund during the period. Fierce competition in the transmission of voice, data, and video into household and businesses is the driving force in this sector. Deregulation in the industry has accelerated merger activity in recent months, including a deal between AT&T and portfolio holding Telecommunications Inc. (TCI), as companies position themselves for new business opportunities. TCI gained 64% for the period, while portfolio holding MediaOne Group advanced 16%. Although these securities and others discussed in this report were viewed favorably during the period, all holdings are subject to review in accordance with the fund's investment strategy and may vary in the future. [GRAPHIC OMITTED: horizontal bar chart TOP INDUSTRY SECTORS] TOP INDUSTRY SECTORS* Retail 13.1% Computer software 8.9% Cable television 7.3% Pharmaceuticals and biotechnology 6.5% Broadcasting 6.0% Footnote reads: *Based on net assets as of 1/31/99. Holdings will vary over time. * MEDIA AND ADVERTISING COMPANIES BOOSTED BY INTERNET GROWTH One important byproduct of the current technological revolution is the effect it is having on media and advertising companies. There is a vast array of new products and services, ranging from personal communications services (PCS) to Internet access, offered by a multitude of companies that must compete for the public's attention through advertising. Advertisers of all stripes -- radio, billboard, and TV -- are benefiting from the tremendous demand for their services as each high-tech company tries to get the message out about its new technology or capabilities. Portfolio holdings in the advertising area that contributed to the fund's positive return during the period include Clear Channel Communications, which gained 10% during the semiannual period. With more than 15 million users, America Online has direct access to nearly half of America's Internet-savvy population. The business opportunities for online advertising are tremendous, and investors have taken notice. In the past six months, AOL surged a breathtaking 200% and is now the fund's sixth largest holding. The company was also added to Standard & Poor's 500(R) Index during the period as the flagship of the Internet economy. * RETAILERS FIND NEW NICHE Over the past couple of years, U.S. retailers have had to operate in an exceedingly competitive environment. Although inflation has been subdued in many sectors of the economy, apparel prices actually fell 1.1% in January after a 1.4% slide in 1998,* leaving retailers with little or no pricing power. Some specialty discount retailers have found ways to increase profits while offering reduced prices to consumers. Portfolio holding Costco, up 46% during the period, sells brand-name products through its warehouse-style outlets with an across-the-board 12% markup. Kohl's Corp, up 38%, discounts brand-name apparel. These companies are recognizing that many Americans demand value above service, and they are being rewarded in a difficult environment with profits and rising share values. *Source: Department of Labor. [GRAPHIC OMITTED: TOP 10 HOLDINGS] TOP 10 HOLDINGS Tele-Communications TCI Ventures Group Cable television Costco Companies, Inc. Retail Microsoft Corporation Computer software CBS Corporation Broadcasting Tyco International Ltd. Medical supplies and devices America Online, Inc. Computer services Merck & Co., Inc. Pharmaceuticals and biotechnology Tele-Communications, Inc. Cable television Kohl's Corporation Retail Clear Channel Communications, Inc. Broadcasting Footnote reads: These holdings represent 19.2% of the fund's assets as of 1/31/99. Portfolio holdings will vary over time. * STAGE SET FOR CONTINUED GROWTH At the moment, the economic backdrop for financial markets is extremely favorable. U.S. gross domestic product grew at an annualized rate of 6.1% in the last quarter of 1998, yet inflation slowed to less than 1%. Although layoffs have surged in some sectors of the economy, job growth in service-related sectors has more than offset declines, bringing the nation's unemployment rate to a 28-year low of 4.3% in December. Productivity, which improved at a 4.6% annual rate in the last three months of 1998, is a byproduct of some of the trends taking place in the U.S. economy as growth is transferred in some cases from traditional industries to newer and more productive sectors of the economy. Despite the gains in productivity, real earnings growth is becoming increasingly difficult to find. Market volatility will likely continue as investors reward companies that deliver growth and punish those that disappoint. The fund's companies have higher-than-average growth rates and therefore elevated expectations. While short-term volatility may be in store, over the longer term we think growth stock valuations will continue to rise. In the coming months, we will continue to look for companies that we believe are successfully participating in the profound changes taking place in the U.S. economy. The fund's focus on rapidly growing companies of all sizes should continue to benefit investors in 1999. The views expressed here are exclusively those of Putnam Management. They are not meant as investment advice. Although the described holdings were viewed favorably as of 1/31/99, 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 capital appreciation primarily through common stocks. TOTAL RETURN FOR PERIODS ENDED 1/31/99 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 16.19% 9.53% 15.73% 10.73% 15.95% 11.89% - ------------------------------------------------------------------------------ 1 year 30.55 23.05 29.56 24.56 29.91 25.35 - ------------------------------------------------------------------------------ 5 years 154.05 139.45 144.77 142.77 147.91 139.19 Annual average 20.50 19.08 19.61 19.41 19.91 19.06 - ------------------------------------------------------------------------------ 10 years 527.04 490.99 478.90 478.90 495.02 474.19 Annual average 20.15 19.44 19.20 19.20 19.52 19.10 - ------------------------------------------------------------------------------ Annual average (life of fund) 14.57 14.34 13.50 13.50 13.80 13.66 - ------------------------------------------------------------------------------ COMPARATIVE INDEX RETURNS FOR PERIODS ENDED 1/31/99 Russell MidCap Consumer Growth Index Price Index - ------------------------------------------------------------------------------ 6 months 13.38% 0.86% - ------------------------------------------------------------------------------ 1 year 23.62 1.86 - ------------------------------------------------------------------------------ 5 years 123.33 12.59 Annual average 17.44 2.40 - ------------------------------------------------------------------------------ 10 years 379.58 35.92 Annual average 16.98 3.12 - ------------------------------------------------------------------------------ Annual average (life of fund) N/A 5.22 - ------------------------------------------------------------------------------ Past performance is no assurance of future results. More recent returns may be more or less than those shown. 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. 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 1/31/99 Class A Class B Class M - ------------------------------------------------------------------------------ Distributions (number) 1 1 1 - ------------------------------------------------------------------------------ Income -- -- -- - ------------------------------------------------------------------------------ Capital gains - ------------------------------------------------------------------------------ Long-term 1.5620 1.5620 1.5620 - ------------------------------------------------------------------------------ Short-term 0.0232 0.0232 0.0232 - ------------------------------------------------------------------------------ Total $1.5852 $1.5852 $1.5852 - ------------------------------------------------------------------------------ Share value: NAV POP NAV NAV POP - ------------------------------------------------------------------------------ 7/31/98 $21.36 $22.66 $20.14 $20.93 $21.69 - ------------------------------------------------------------------------------ 1/31/99 23.02 24.42 21.51 22.47 23.28 - ------------------------------------------------------------------------------ TOTAL RETURN FOR PERIODS ENDED 12/31/98 (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 6.21% 0.10% 5.77% 0.89% 5.92% 2.22% - ------------------------------------------------------------------------------ 1 year 24.05 16.93 23.07 18.07 23.40 19.07 - ------------------------------------------------------------------------------ 5 years 148.17 133.92 138.89 136.89 141.98 133.45 Annual average 19.94 18.53 19.03 18.83 19.33 18.48 - ------------------------------------------------------------------------------ 10 years 534.88 498.38 485.85 485.85 502.25 481.17 Annual average 20.30 19.59 19.34 19.34 19.67 19.24 - ------------------------------------------------------------------------------ Annual average (life of fund) 14.42 14.20 13.35 13.35 13.65 13.52 - ------------------------------------------------------------------------------ Past performance is no assurance of future results. More recent returns may be more or less than those shown. They do not take into account any adjustment for taxes payable on reinvested distributions. 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 method of performance calculation. 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 5.75% maximum 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 Russell MidCap Growth Index* measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values. The stocks are also members of the Russell 1000 Growth Index. Consumer Price Index (CPI) is a commonly used measure of inflation; it does not represent an investment return. *Securities indexes assume reinvestment of all distributions and interest payments and do not take in account brokerage fees or taxes. Securities in the fund do not match those in the indexes and performance of the fund will differ. It is not possible to invest directly in an index.
Portfolio of investments owned January 31, 1999 (Unaudited) COMMON STOCKS (97.7%) (a) NUMBER OF SHARES VALUE Advertising (1.5%) - -------------------------------------------------------------------------------------------------------------------------- 1,478,731 Lamar Advertising Co. (NON) $ 58,040,192 2,165,464 Omnicom Group, Inc. 138,589,696 7,206,319 Outdoor Systems, Inc. (NON) 207,181,671 130,100 TMP Worldwide Inc. (NON) 7,806,000 --------------- 411,617,559 Apparel (0.5%) - -------------------------------------------------------------------------------------------------------------------------- 1,273,586 Gucci Group N.V. (Netherlands) 87,638,637 1,070,750 Nike, Inc. 48,986,813 --------------- 136,625,450 Automotive (0.3%) - -------------------------------------------------------------------------------------------------------------------------- 2,919,864 Republic Industries, Inc. (NON) 44,162,943 734,500 Snap-On Inc. 24,973,000 --------------- 69,135,943 Banks (2.4%) - -------------------------------------------------------------------------------------------------------------------------- 2,379,200 Banc One Corp. 124,610,600 3,514,200 Fifth Third Bancorp 240,503,063 2,015,272 Firstar Corp. 177,721,800 328,900 Northern Trust Corp. 28,470,406 841,300 SunTrust Banks, Inc. 59,259,069 --------------- 630,564,938 Broadcasting (6.0%) - -------------------------------------------------------------------------------------------------------------------------- 13,825,080 CBS Corp. 470,052,720 4,746,746 Chancellor Media Corp. (NON) 272,937,895 6,917,890 Clear Channel Communications, Inc. (NON) 428,044,444 412,600 Entercom Communications Corp. (NON) 12,790,600 1,036,181 Heftel Broadcasting Corp. Class A (NON) 47,275,758 6,621,200 Infinity Broadcasting Corp. Class A (NON) 183,324,475 3,110,930 Sinclair Broadcast Group, Inc. Class A (NON) 58,718,804 1,454,600 Univision Communications Inc. Class A (NON) 65,275,175 2,015,000 WestWood One, Inc. (NON) (AFF) 56,671,875 --------------- 1,595,091,746 Business Services (5.3%) - -------------------------------------------------------------------------------------------------------------------------- 616,545 Affiliated Computer Services, Inc. Class A (NON) 29,748,296 308,869 AnswerThink Consulting Group, Inc. (NON) 15,597,885 14,839,295 Cendant Corp. (NON) 322,754,666 2,545,390 Cintas Corp. 193,608,727 1,099,600 Interim Services Inc. (NON) 23,366,500 2,141,229 Interpublic Group of Cos., Inc. 169,424,745 744,075 Metamor Worldwide, Inc. (NON) 19,997,016 1,303,932 NOVA Corp./Georgia (NON) 41,644,328 1,758,952 Paychex, Inc. 85,638,976 135,800 Pitney Bowes, Inc. 9,344,738 40,338,974 Rentokil Group PLC (United Kingdom) 296,950,315 1,328,500 Robert Half International, Inc. (NON) 50,233,906 335,700 Select Appointments Holdings PLC ADR (United Kingdom) 7,469,325 2,930,073 Serco Group PLC (United Kingdom) (NON) 59,526,631 1,931,100 Snyder Communications, Inc. (NON) 77,244,000 --------------- 1,402,550,054 Cable Television (7.3%) - -------------------------------------------------------------------------------------------------------------------------- 305,500 Adelphia Communications Corp. (NON) 18,406,375 1,926,200 Comcast Corp. Class A 130,951,503 5,464,000 MediaOne Group Inc. (NON) 306,325,500 4,035,300 Tele-Comm Liberty Media Group, Inc. Class A (NON) 215,888,550 6,335,769 Tele-Communications, Inc. Class A (NON) 434,396,162 26,662,610 Tele-Communications TCI Ventures Group Class A (NON) (AFF) 726,556,123 3,089,100 USA Networks, Inc. (NON) 111,207,600 --------------- 1,943,731,813 Cellular Communication (0.3%) - -------------------------------------------------------------------------------------------------------------------------- 2,308,400 Sprint PCS (NON) 73,580,250 Computer Services (4.0%) - -------------------------------------------------------------------------------------------------------------------------- 2,545,000 America Online, Inc. (NON) 447,124,688 473,200 Applied Graphics Technologies, Inc. (NON) 6,802,250 2,686,764 Capita Group PLC (United Kingdom) 25,015,654 74,900 Covad Communications Group 144A 3,950,975 2,234,400 Electronic Data Systems Corp. 117,166,350 1,918,557 EMC Corp. (NON) 208,882,893 1,285,700 Galileo International, Inc. (NON) 62,999,300 400,040 IDT Corp. (NON) 6,200,620 2,453,908 Keane, Inc. (NON) 79,138,533 2,067,620 Misys PLC (United Kingdom) (NON) 21,742,394 32,100 Network Solutions, Inc. (NON) 7,736,100 835,229 Sterling Commerce, Inc. (NON) 35,862,645 523,200 SunGard Data Systems Inc. (NON) 18,769,800 57,700 VeriSign, Inc. 5,495,925 622,700 Whittman-Hart, Inc. (NON) 20,860,450 --------------- 1,067,748,577 Computer Software (8.9%) - -------------------------------------------------------------------------------------------------------------------------- 1,815,276 BMC Software, Inc. (NON) 84,705,698 5,027,954 Cadence Design Systems, Inc. (NON) 160,894,528 831,793 Cerner Corp. (NON) 20,274,954 373,000 Citrix Systems, Inc. (NON) 33,803,125 6,316,011 Computer Associates Intl., Inc. 319,748,057 2,299,916 Compuware Corp. (NON) 152,369,435 3,128,890 Electronic Arts, Inc. (NON) (AFF) 131,902,269 1,340,400 Gateway 2000, Inc. (NON) 103,545,900 251,800 I2 Technologies, Inc. (NON) 8,781,525 560,000 Infoseek Corp. (NON) 43,820,000 1,536,529 Intuit, Inc. (NON) 139,824,139 869,000 Legato Systems, Inc. (NON) 52,465,875 1,376,500 Lernout & Hauspie Speech Products N.V. (Belgium) (NON) 48,865,750 300,000 Lycos, Inc. (NON) 41,100,000 3,461,638 Microsoft Corp. (NON) 605,786,650 1,298,650 Oracle Corp. (NON) 71,912,744 14,017,814 Parametric Technology Corp. (NON) (AFF) 183,107,695 424,000 Policy Management Systems Corp. (NON) 22,763,500 156,000 Rational Software Corp. (NON) 5,157,750 1,527,454 Synopsys, Inc. (NON) 88,687,798 1,295,000 The Learning Company, Inc. (NON) 31,403,750 216,100 VERITAS Software Corp. (NON) 18,071,363 --------------- 2,368,992,505 Computers (2.0%) - -------------------------------------------------------------------------------------------------------------------------- 4,504,800 Compaq Computer Corp. 214,541,100 1,289,600 IBM Corp. 236,319,200 2,136,000 Seagate Technology, Inc. (NON) 86,908,500 --------------- 537,768,800 Conglomerates (0.2%) - -------------------------------------------------------------------------------------------------------------------------- 500,500 Allied-Signal, Inc. 19,519,500 925,200 Corning Inc. 45,103,500 --------------- 64,623,000 Consumer Products (0.2%) - -------------------------------------------------------------------------------------------------------------------------- 968,600 Newell Co. 40,257,438 Consumer Services (0.7%) - -------------------------------------------------------------------------------------------------------------------------- 2,158,404 Hillenbrand Industries, Inc. 101,444,988 5,170,925 The ServiceMaster Co. 98,570,758 --------------- 200,015,746 Cosmetics (--%) - -------------------------------------------------------------------------------------------------------------------------- 235,003 ThermoLase Corp. (NON) 998,763 Education Services (0.1%) - -------------------------------------------------------------------------------------------------------------------------- 754,793 Apollo Group, Inc. Class A (NON) 20,662,458 325,200 ITT Educational Services, Inc. (NON) 12,499,875 --------------- 33,162,333 Electric Utilities (0.4%) - -------------------------------------------------------------------------------------------------------------------------- 1,275,500 CalEnergy, Inc. (NON) 40,656,563 1,243,500 Duke Energy Corp. 76,863,844 --------------- 117,520,407 Electronics and Electrical Equipment (3.7%) - -------------------------------------------------------------------------------------------------------------------------- 2,023,900 American Power Conversion Corp. (NON) 103,471,888 2,698,050 Applied Materials, Inc. (NON) 170,483,034 697,400 ASM Lithography Holding N.V. (Netherlands) (NON) 32,429,100 900,000 Celestica Inc. (Canada) (NON) 30,150,000 1,780,300 General Electric Co. 186,708,963 1,889,400 Motorola, Inc. 136,509,150 629,000 PMC -- Sierra, Inc. (NON) 46,742,563 1,141,754 Sanmina Corp. (NON) 75,355,764 826,800 Sipex Corp. (NON) 22,116,900 814,336 Solectron Corp. (NON) 72,526,800 288,960 Teradyne, Inc. (NON) 19,035,240 2,038,800 Thermo Instrument Systems, Inc. (NON) 33,895,050 307,905 Uniphase Corp. (NON) 28,057,843 434,264 Waters Corp. (NON) 39,518,024 --------------- 997,000,319 Energy-Related (0.3%) - -------------------------------------------------------------------------------------------------------------------------- 4,188,546 Thermo Electron Corp. (NON) 69,634,577 Entertainment (0.9%) - -------------------------------------------------------------------------------------------------------------------------- 413,000 SFX Entertainment, Inc. Class A (NON) 25,502,750 1,523,000 Time Warner, Inc. 95,187,500 1,320,200 Viacom, Inc. Class B (NON) 112,217,000 --------------- 232,907,250 Environmental Control (1.4%) - -------------------------------------------------------------------------------------------------------------------------- 2,329,979 Allied Waste Industries, Inc. (NON) 47,473,322 2,272,874 Republic Services, Inc. (NON) 46,878,026 1,804,500 U.S. Filter Corp. (NON) 41,841,844 4,782,800 Waste Management, Inc.(NON) 238,841,075 --------------- 375,034,267 Financial Services (3.8%) - -------------------------------------------------------------------------------------------------------------------------- 1,271,210 American Express Co. 130,775,729 944,120 Charter One Financial, Inc. 26,435,360 2,034,100 Citigroup, Inc. 114,036,731 2,348,577 Concord EFS, Inc. (NON) 95,410,941 153,000 Donaldson, Lufkin & Jenrette, Inc. 7,630,876 1,794,310 Fannie Mae 130,760,341 1,892,777 Federal Home Loan Mortgage Corp. 117,352,174 4,698,300 MBNA Corp. 131,258,756 1,015,700 Morgan Stanley, Dean Witter, Discover and Co. 88,175,456 958,050 Providian Financial Corp. 96,583,416 2,263,992 TCF Financial Corp. 50,515,322 1,052,900 Wells Fargo Co. 36,785,694 --------------- 1,025,720,796 Food and Beverages (0.3%) - -------------------------------------------------------------------------------------------------------------------------- 4,419,200 Whitman Corp. 86,174,400 Funeral/Cemetery Services (0.1%) - -------------------------------------------------------------------------------------------------------------------------- 1,968,198 Stewart Enterprises, Inc. Class A 34,443,465 Health Care Services (1.4%) - -------------------------------------------------------------------------------------------------------------------------- 438,200 CareMatrix Corp. (NON) 10,927,613 6,113,542 Health Management Assoc., Inc. (NON) 76,801,371 1,294,622 IMS Health Inc. 47,415,531 1,353,200 Lincare Holdings, Inc. (NON) 47,362,000 1,586,971 Mckesson HBOC, Inc. 119,221,191 105,200 NCS HealthCare, Inc. Class A (NON) 2,301,250 395,000 Sunrise Assisted Living, Inc. (NON) 16,590,000 2,315,496 Total Renal Care Holdings, Inc. (NON) 53,980,001 --------------- 374,598,957 Insurance (1.6%) - -------------------------------------------------------------------------------------------------------------------------- 3,611,850 AFLAC Inc. 154,858,069 2,301,100 American General Corp. 164,097,194 843,750 American International Group, Inc. 86,853,516 859,100 Century Business Services, Inc. (NON) 12,027,400 230,300 CIGNA Corp. 18,970,963 --------------- 436,807,142 Lodging (0.4%) - -------------------------------------------------------------------------------------------------------------------------- 3,064,883 Extended Stay America, Inc. (NON) 28,541,723 1,779,400 Prime Hospitality Corp. (NON) 18,572,488 1,684,343 Promus Hotel Corp. (NON) 50,319,747 --------------- 97,433,958 Machinery (0.1%) - -------------------------------------------------------------------------------------------------------------------------- 343,156 Sidel S.A. (France) 28,362,516 Medical Supplies and Devices (4.5%) - -------------------------------------------------------------------------------------------------------------------------- 1,313,300 Baxter International, Inc. 93,162,219 1,738,200 Bergen Brunswig Corp. Class A 48,669,600 892,258 Centocor, Inc. (NON) 37,530,602 469,235 Henry Schein, Inc. (NON) 19,737,197 614,000 LifeCore Biomedical, Inc. (NON) 6,447,000 3,804,440 Medtronic, Inc. 303,166,313 264,700 Minimed, Inc. (NON) 28,753,038 1,775,956 Omnicare, Inc. 54,388,653 1,686,557 Stryker Corp. 78,214,081 2,380,632 Sybron International Corp. (NON) 64,277,064 2,477,293 Thermo Cardiosystems, Inc. (NON) (AFF) 21,676,314 435,050 Thermotrex Corp. (NON) 3,181,303 5,816,942 Tyco International Ltd. 448,268,093 --------------- 1,207,471,477 Networking (2.7%) - -------------------------------------------------------------------------------------------------------------------------- 4,665,400 Ascend Communications, Inc. (NON) 407,347,738 794,100 Cisco Systems, Inc. (NON) 88,591,781 3,750,300 3Com Corp. (NON) 176,264,100 478,100 Entrust Technologies Inc. (NON) 16,853,025 438,400 Network Appliance, Inc. (NON) 23,235,200 --------------- 712,291,844 Office Equipment (0.2%) - -------------------------------------------------------------------------------------------------------------------------- 1,251,050 Avery Dennison Corp. 61,848,784 Oil and Gas (1.3%) - -------------------------------------------------------------------------------------------------------------------------- 326,400 Chevron, Inc. 24,398,400 2,974,600 Conoco, Inc. (NON) 59,306,088 1,422,800 Halliburton Co. 42,239,375 1,453,850 Nabors Industries, Inc. (NON) 18,173,125 2,318,000 National-Oilwell, Inc. (NON) (AFF) 22,600,500 1,575,929 Schlumberger Ltd. 75,053,619 784,600 Total Corp. ADR (France) 40,161,713 1,771,750 Varco International, Inc. (NON) 12,955,922 1,294,400 Williams Cos., Inc. 42,715,200 --------------- 337,603,942 Packaging and Containers (0.2%) - -------------------------------------------------------------------------------------------------------------------------- 911,700 Sealed Air Corp. (NON) 48,377,081 Paper and Forest Products (0.1%) - -------------------------------------------------------------------------------------------------------------------------- 403,300 Willamette Industries, Inc. 14,115,500 Pharmaceuticals and Biotechnology (6.5%) - -------------------------------------------------------------------------------------------------------------------------- 3,045,900 American Home Products Corp. 178,756,256 140,400 Bristol-Myers Squibb Co. 17,997,525 1,966,853 Elan Corp. PLC ADR (Ireland) (NON) 132,762,578 1,702,400 Genentech, Inc. (NON) 138,532,800 2,965,561 Merck & Co., Inc. 435,196,077 1,542,400 Pfizer, Inc. 198,391,200 4,103,293 Pharmacia & Upjohn, Inc. 235,939,348 2,732,200 Schering-Plough Corp. 148,904,900 924,285 Sepracor, Inc. (NON) 106,061,704 280,000 Transkaryotic Therapies, Inc. (Malaysia) (NON) 8,400,000 1,250,921 Vertex Pharmaceuticals, Inc. (NON) 39,404,012 1,432,100 Warner-Lambert Co. 103,379,719 --------------- 1,743,726,119 Publishing (1.5%) - -------------------------------------------------------------------------------------------------------------------------- 1,145,600 Harcourt General, Inc. 54,988,800 797,700 McGraw-Hill, Inc. 86,251,313 1,252,423 Wolters Kluwer N.V. (Netherlands) 247,596,732 --------------- 388,836,845 Recreation (--%) - -------------------------------------------------------------------------------------------------------------------------- 240,300 International Speedway Corp. Class A (NON) 10,212,750 Restaurants (0.6%) - -------------------------------------------------------------------------------------------------------------------------- 9,433,737 J.D. Wetherspoon PLC (United Kingdom) (NON) 30,726,625 962,100 McDonald's Corp. 75,825,506 1,050,400 PizzaExpress PLC (United Kingdom) 13,304,892 955,500 Tricon Global Restaurants, Inc. (NON) 45,445,969 --------------- 165,302,992 Retail (13.1%) - -------------------------------------------------------------------------------------------------------------------------- 1,846,600 Albertsons, Inc. 112,642,600 2,594,050 Bed Bath & Beyond, Inc. (NON) 83,009,600 44,100 CompUSA, Inc. (NON) 556,763 2,063,204 Consolidated Stores Corp. (NON) 34,429,717 8,525,420 Costco Companies, Inc. (NON) 706,544,183 2,921,040 CVS Corp. 159,926,940 4,245,782 Dollar Tree Stores, Inc. (NON) (AFF) 183,364,710 5,214,300 Home Depot, Inc. (The) 314,813,363 6,338,778 Kohls Corp. (NON) 429,452,210 1,734,900 Kroger Co. (NON) 110,166,150 2,989,600 Lowe's Cos., Inc. 174,331,050 1,343,037 Michaels Stores, Inc. (NON) 25,181,944 805,000 Micro Warehouse, Inc. (NON) 31,395,000 7,306,165 Office Depot, Inc. (NON) (AFF) 253,889,234 4,744,400 Officemax, Inc. (NON)(AFF) 45,368,325 4,612,600 Rite Aid Corp. 226,593,975 858,700 Safeway, Inc. (NON) 48,194,538 495,300 Saks, Inc. (NON) 18,233,231 2,164,853 Starbucks Corp. (NON) 112,707,659 6,307,300 TJX Cos., Inc. (The) 186,459,556 1,286,300 Wal-Mart Stores, Inc. 110,621,800 1,129,900 Walgreen Co. 70,618,750 1,503,340 Williams-Sonoma, Inc. (NON) 52,147,106 --------------- 3,490,648,404 Satellite Services (0.3%) - -------------------------------------------------------------------------------------------------------------------------- 1,679,060 PanAmSat Corp. (NON) 67,477,224 Semiconductors (4.4%) - -------------------------------------------------------------------------------------------------------------------------- 800,000 Analog Devices, Inc. (NON) 23,800,000 1,541,600 Intel Corp. 217,269,250 1,018,230 KLA Tencor Corp. (NON) 58,802,783 3,874,250 Linear Technology Corp.(AFF) 394,204,938 5,795,204 Maxim Integrated Products Inc. (NON) 298,090,806 787,900 Novellus Systems, Inc. (NON) 57,615,188 1,041,900 Texas Instruments, Inc. 103,017,863 400,000 Xilinx, Inc. (NON) 33,200,000 --------------- 1,186,000,828 Specialty Consumer Products (0.2%) - -------------------------------------------------------------------------------------------------------------------------- 4,813,690 Luxottica Group S.P.A. ADR (Italy)(AFF) 51,145,456 Steel (--%) - -------------------------------------------------------------------------------------------------------------------------- 474,600 Lone Star Technologies, Inc. (NON) 6,140,138 Telecommunication Equipment (1.3%) - -------------------------------------------------------------------------------------------------------------------------- 473,300 Comverse Technology, Inc. (NON) 39,757,200 1,076,800 Oy Nokia AB Class A, (Finland) 157,256,141 1,223,100 Lucent Technologies, Inc. 137,675,194 --------------- 334,688,535 Telecommunications (1.9%) - -------------------------------------------------------------------------------------------------------------------------- 487,577 E. Spire Communications, Inc. (NON) 2,529,306 679,600 Global Crossing Ltd. (NON) 35,933,850 1,853,583 Global TeleSystems Group, Inc. (NON) 116,080,635 3,531,700 MCI WorldCom, Inc. (NON) 281,653,075 999,400 NTL Inc. (NON) 83,075,125 --------------- 519,271,991 Telephone Services (3.5%) - -------------------------------------------------------------------------------------------------------------------------- 1,434,890 Intermedia Communications, Inc. (NON) 19,909,099 1,824,600 McLeod, Inc. Class A (NON) 75,834,938 2,936,000 Metromedia Fiber Network, Inc. Class A (NON) 134,505,500 1,200,595 NEXTLINK Communications, Inc. Class A (NON) 53,051,292 4,229,121 Qwest Communications International, Inc. (NON) 253,482,940 1,089,000 RSL Communications, Ltd. Class A (NON) 27,905,625 992,300 SBC Communications, Inc. 53,584,200 3,813,000 Sprint Corp. 319,815,375 --------------- 938,088,969 Tobacco (0.4%) - -------------------------------------------------------------------------------------------------------------------------- 2,191,500 Philip Morris Cos., Inc. 103,000,500 Transportation (0.2%) - -------------------------------------------------------------------------------------------------------------------------- 703,350 FDX Corp. (NON) 57,454,903 Wireless Communications (0.7%) - -------------------------------------------------------------------------------------------------------------------------- 1,326,500 AirTouch Communications, Inc. (NON) 128,090,156 1,382,100 American Tower Corp. Class A 35,589,075 259,400 RF Micro Devices, Inc. (NON) 18,774,075 --------------- 182,453,306 --------------- Total Common Stocks (cost $16,636,411,833) $26,078,260,557 UNITS (--%) (cost $5,602,985) (a) NUMBER OF UNITS VALUE - -------------------------------------------------------------------------------------------------------------------------- 173,620 ThermoLase Corp. (NON) $ 2,799,623 SHORT-TERM INVESTMENTS (2.3%) (a) PRINCIPAL AMOUNT VALUE - -------------------------------------------------------------------------------------------------------------------------- $50,000,000 Asset Securitization Corp. for an effective yield of 5.04%, April 16, 1999 $ 49,477,138 50,000,000 Associates Corp. Of North America for an effective yield of 4.83%, February 8, 1999 49,948,472 50,000,000 Bank Of New York Co. Inc. for an effective yield of 4.87%, February 17, 1999 49,887,151 15,000,000 Chevron Transport Inc. for an effective yield of 5.05%, March 22, 1999 14,896,929 36,000,000 Commonwealth Bank Of Australia for an effective yield of 4.90%, February 10, 1999 35,954,467 45,000,000 Corporate Receivables Co. for an effective yield of 4.86%, March 3, 1999 44,813,812 31,000,000 Credit Suisse First Boston for an effective yield of 4.80%, May 11, 1999 30,588,804 50,000,000 General Electric Capital Corp. for an effective yield of 5.05%, February 19, 1999 49,868,874 50,000,000 National Australia Funding for an effective yield of 5.17%, February 2, 1999 49,990,443 34,000,000 Sheffield Receivable Corp. for an effective yield of 5.25%, February 26, 1999 33,868,262 40,000,000 Svenska Handelsbanken Inc. for an effective yield of 4.80%, April 28, 1999 39,538,137 50,000,000 Windmill Funding for an effective yield of 4.86%, March 24, 1999 49,651,137 112,909,000 Interest in $580,000,000 joint repurchase agreement dated January 29, 1999 with J P Morgan due February 1, 1999 with respect to various U.S. Treasury obligations -- maturity value of $112,953,223 for an effective yield of 4.70% 112,909,000 --------------- Total Short-Term Investments (cost $611,392,626) $ 611,392,626 - -------------------------------------------------------------------------------------------------------------------------- Total Investments (cost $17,253,407,444) (b) $26,692,452,806 - -------------------------------------------------------------------------------------------------------------------------- (a) Percentages indicated are based on net assets of $26,700,333,258. (b) The aggregate identified cost on a tax basis is $17,296,795,027, resulting in gross unrealized appreciation and depreciation of $10,228,579,767 and $832,921,988, respectively, or net unrealized appreciation of $9,395,657,779. (NON) Non-income-producing security. (AFF) Affiliated Companies (Note 5). ADR after the name of a foreign holding stands for American Depository Receipts, 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, 1999 (Unaudited) Assets - ----------------------------------------------------------------------------------------------- Investments in securities, at value (identified cost $17,253,407,444) (Note 1) $26,692,452,806 - ----------------------------------------------------------------------------------------------- Cash 39,459 - ----------------------------------------------------------------------------------------------- Dividends and interest and other receivables 2,443,960 - ----------------------------------------------------------------------------------------------- Receivable for shares of the fund sold 49,226,179 - ----------------------------------------------------------------------------------------------- Receivable for securities sold 336,938,285 - ----------------------------------------------------------------------------------------------- Total assets 27,081,100,689 Liabilities - ----------------------------------------------------------------------------------------------- Payable for securities purchased 305,419,740 - ----------------------------------------------------------------------------------------------- Payable for shares of the fund repurchased 32,206,210 - ----------------------------------------------------------------------------------------------- Payable for compensation of Manager (Note 2) 28,529,309 - ----------------------------------------------------------------------------------------------- Payable for investor servicing and custodian fees (Note 2) 2,974,958 - ----------------------------------------------------------------------------------------------- Payable for compensation of Trustees (Note 2) 203,026 - ----------------------------------------------------------------------------------------------- Payable for administrative services (Note 2) 5,044 - ----------------------------------------------------------------------------------------------- Payable for distribution fees (Note 2) 10,274,004 - ----------------------------------------------------------------------------------------------- Payable to subcustodian 3,097 - ----------------------------------------------------------------------------------------------- Other accrued expenses 1,152,043 - ----------------------------------------------------------------------------------------------- Total liabilities 380,767,431 - ----------------------------------------------------------------------------------------------- Net assets $26,700,333,258 Represented by - ----------------------------------------------------------------------------------------------- Paid-in capital (Notes 1 and 4) $16,676,809,024 - ----------------------------------------------------------------------------------------------- Accumulated net investment loss (Note 1) (54,787,824) - ----------------------------------------------------------------------------------------------- Accumulated net realized gain on investments and foreign currency transactions (Note 1) 639,266,083 - ----------------------------------------------------------------------------------------------- Net unrealized appreciation of investments and assets and liabilities in foreign currencies 9,439,045,975 - ----------------------------------------------------------------------------------------------- Total -- Representing net assets applicable to capital shares outstanding $26,700,333,258 Computation of net asset value and offering price - ----------------------------------------------------------------------------------------------- Net asset value and redemption price per class A share ($16,310,719,316 divided by 708,438,373 shares) $23.02 - ----------------------------------------------------------------------------------------------- Offering price per class A share (100/94.25 of $23.02)* $24.42 - ----------------------------------------------------------------------------------------------- Net asset value and offering price per class B share ($8,259,422,605 divided by 383,982,972 shares)** $21.51 - ----------------------------------------------------------------------------------------------- Net asset value and redemption price per class M share ($356,866,205 divided by 15,883,818 shares) $22.47 - ----------------------------------------------------------------------------------------------- Offering price per class M share (100/96.50 of $22.47)* $23.28 - ----------------------------------------------------------------------------------------------- Net asset value, offering price and redemption price per class Y share ($1,773,325,132 divided by 75,769,632 shares) $23.40 - ----------------------------------------------------------------------------------------------- * 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 sales charge. The accompanying notes are an integral part of these financial statements.
Statement of operations Six months ended January 31, 1999 (Unaudited) Investment income: - ----------------------------------------------------------------------------------------------- Dividends (net of foreign tax of $168,204) (including dividend income of $539,833 from investments in affiliated issuers) (Note 5) $ 54,314,734 - ----------------------------------------------------------------------------------------------- Interest 16,132,178 - ----------------------------------------------------------------------------------------------- Total investment income 70,446,912 Expenses: - ----------------------------------------------------------------------------------------------- Compensation of Manager (Note 2) 53,326,708 - ----------------------------------------------------------------------------------------------- Investor servicing and custodian fees (Note 2) 16,903,120 - ----------------------------------------------------------------------------------------------- Compensation of Trustees (Note 2) 166,795 - ----------------------------------------------------------------------------------------------- Administrative services (Note 2) 30,039 - ----------------------------------------------------------------------------------------------- Distribution fees -- Class A (Note 2) 17,038,107 - ----------------------------------------------------------------------------------------------- Distribution fees -- Class B (Note 2) 35,241,544 - ----------------------------------------------------------------------------------------------- Distribution fees -- Class M (Note 2) 1,196,238 - ----------------------------------------------------------------------------------------------- Reports to shareholders 135,649 - ----------------------------------------------------------------------------------------------- Registration fees 967,286 - ----------------------------------------------------------------------------------------------- Auditing 11,886 - ----------------------------------------------------------------------------------------------- Legal 42,186 - ----------------------------------------------------------------------------------------------- Postage 1,193,948 - ----------------------------------------------------------------------------------------------- Other 472,113 - ----------------------------------------------------------------------------------------------- Total expenses 126,725,619 - ----------------------------------------------------------------------------------------------- Expense reduction (Note 2) (1,490,883) - ----------------------------------------------------------------------------------------------- Net expenses 125,234,736 - ----------------------------------------------------------------------------------------------- Net investment loss (54,787,824) - ----------------------------------------------------------------------------------------------- Net realized gain on investments (Notes 1, 3 and 5) (including realized loss of $19,033,129 on sales of investments in affiliated issuers) 798,282,941 - ----------------------------------------------------------------------------------------------- Net realized loss on foreign currency transactions (2,158) - ----------------------------------------------------------------------------------------------- Net unrealized appreciation of assets and liabilities in foreign currencies during the period 12,544 - ----------------------------------------------------------------------------------------------- Net unrealized appreciation of investments during the period 2,953,094,070 - ----------------------------------------------------------------------------------------------- Net gain on investments 3,751,387,397 - ----------------------------------------------------------------------------------------------- Net increase in net assets resulting from operations $3,696,599,573 - ----------------------------------------------------------------------------------------------- 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 ------------------------------- 1999* 1998 - --------------------------------------------------------------------------------------------------------------- Increase in net assets - --------------------------------------------------------------------------------------------------------------- Operations: - --------------------------------------------------------------------------------------------------------------- Net investment loss $ (54,787,824) $ (88,429,562) - --------------------------------------------------------------------------------------------------------------- Net realized gain on investments and foreign currency transactions 798,280,783 2,303,218,869 - --------------------------------------------------------------------------------------------------------------- Net unrealized appreciation of investments and assets and liabilities in foreign currencies 2,953,106,614 891,370,340 - --------------------------------------------------------------------------------------------------------------- Net increase in net assets resulting from operations 3,696,599,573 3,106,159,647 - --------------------------------------------------------------------------------------------------------------- Distributions to shareholders: - --------------------------------------------------------------------------------------------------------------- From net realized gain on investments Class A (1,042,857,172) (699,467,888) - --------------------------------------------------------------------------------------------------------------- Class B (569,436,634) (385,798,466) - --------------------------------------------------------------------------------------------------------------- Class M (25,276,938) (15,960,864) - --------------------------------------------------------------------------------------------------------------- Class Y (106,713,548) (73,039,295) - --------------------------------------------------------------------------------------------------------------- Increase from capital share transactions (Note 4) 1,831,366,005 2,892,368,485 - --------------------------------------------------------------------------------------------------------------- Total increase in net assets 3,783,681,286 4,824,261,619 Net assets - --------------------------------------------------------------------------------------------------------------- Beginning of period 22,916,651,972 18,092,390,353 - --------------------------------------------------------------------------------------------------------------- End of period (including accumulated net investment loss of $54,787,824 and $--, respectively) $26,700,333,258 $22,916,651,972 - --------------------------------------------------------------------------------------------------------------- * 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 - ------------------------------------------------------------------------------------------------------------------------------------ 1999 1998 1997 1996 1995 1994 - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $21.36 $19.49 $15.73 $14.42 $11.19 $11.02 - ------------------------------------------------------------------------------------------------------------------------------------ Investment operations - ------------------------------------------------------------------------------------------------------------------------------------ Net investment income (loss) (.03)(c) (.04)(c) --(c) (.02)(c) .02 (.02) - ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) on investments 3.28 3.12 4.85 2.19 3.72 .65 - ------------------------------------------------------------------------------------------------------------------------------------ Total from investment operations 3.25 3.08 4.85 2.17 3.74 .63 - ------------------------------------------------------------------------------------------------------------------------------------ Less distributions: - ------------------------------------------------------------------------------------------------------------------------------------ From net realized gain on investments (1.59) (1.21) (1.09) (.86) (.51) (.46) - ------------------------------------------------------------------------------------------------------------------------------------ Total distributions (1.59) (1.21) (1.09) (.86) (.51) (.46) - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $23.02 $21.36 $19.49 $15.73 $14.42 $11.19 - ------------------------------------------------------------------------------------------------------------------------------------ Ratios and supplemental data - ------------------------------------------------------------------------------------------------------------------------------------ Total return at net asset value (%)(a) 16.19* 16.83 32.22 15.49 34.72 5.49 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $16,310,719 $13,854,611 $11,158,273 $7,332,248 $4,895,180 $3,051,878 - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of expenses to average net assets (%)(b) .46* .96 1.02 1.03 1.07 1.10 - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of net investment income (loss) to average net assets (%) (.14)* (.20) -- (.10) .17 (.18) - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover (%) 36.72* 60.04 59.77 57.92 65.43 57.74 - ------------------------------------------------------------------------------------------------------------------------------------ + Commencement of operations. * Not annualized. (a) Total return assumes dividend reinvestment and does not reflect the effect of sales charges. (b) The ratio of expenses to average net assets for the period ended July 31, 1996 and thereafter, includes amounts paid through brokerage services and expense offset arrangements. Prior period ratios exclude these amounts (Note 2). (c) 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 - ------------------------------------------------------------------------------------------------------------------------------------ 1999 1998 1997 1996 1995 1994 - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $20.14 $18.57 $15.15 $14.01 $10.97 $10.89 - ------------------------------------------------------------------------------------------------------------------------------------ Investment operations - ------------------------------------------------------------------------------------------------------------------------------------ Net investment income (loss) (.10)(c) (.18)(c) (.12)(c) (.13)(c) (.06) (.05) - ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) on investments 3.06 2.96 4.63 2.13 3.61 .59 - ------------------------------------------------------------------------------------------------------------------------------------ Total from investment operations 2.96 2.78 4.51 2.00 3.55 .54 - ------------------------------------------------------------------------------------------------------------------------------------ Less distributions: - ------------------------------------------------------------------------------------------------------------------------------------ From net realized gain on investments (1.59) (1.21) (1.09) (.86) (.51) (.46) - ------------------------------------------------------------------------------------------------------------------------------------ Total distributions (1.59) (1.21) (1.09) (.86) (.51) (.46) - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $21.51 $20.14 $18.57 $15.15 $14.01 $10.97 - ------------------------------------------------------------------------------------------------------------------------------------ Ratios and supplemental data - ------------------------------------------------------------------------------------------------------------------------------------ Total return at net asset value (%)(a) 15.73* 16.02 31.17 14.70 33.65 4.71 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $8,259,423 $7,263,280 $5,664,375 $3,405,318 $1,870,370 $911,069 - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of expenses to average net assets (%)(b) .83* 1.71 1.77 1.78 1.82 1.84 - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of net investment income (loss) to average net assets (%) (.50)* (.95) (.75) (.85) (.58) (.91) - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover (%) 36.72* 60.04 59.77 57.92 65.43 57.74 - ------------------------------------------------------------------------------------------------------------------------------------ + Commencement of operations. * Not annualized. (a) Total return assumes dividend reinvestment and does not reflect the effect of sales charges. (b) The ratio of expenses to average net assets for the period ended July 31, 1996 and thereafter, includes amounts paid through brokerage services and expense offset arrangements. Prior period ratios exclude these amounts (Note 2). (c) 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 - ------------------------------------------------------------------------------------------------------------------------------------ 1999 1998 1997 1996 1995 - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $20.93 $19.22 $15.60 $14.37 $11.79 - ------------------------------------------------------------------------------------------------------------------------------------ Investment operations - ------------------------------------------------------------------------------------------------------------------------------------ Net investment income (loss) (.08)(c) (.14)(c) (.08)(c) (.09)(c) (.01) - ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) on investments 3.21 3.06 4.79 2.18 3.10 - ------------------------------------------------------------------------------------------------------------------------------------ Total from investment operations 3.13 2.92 4.71 2.09 3.09 - ------------------------------------------------------------------------------------------------------------------------------------ Less distributions: - ------------------------------------------------------------------------------------------------------------------------------------ From net realized gain on investments (1.59) (1.21) (1.09) (.86) (.51) - ------------------------------------------------------------------------------------------------------------------------------------ Total distributions (1.59) (1.21) (1.09) (.86) (.51) - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $22.47 $20.93 $19.22 $15.60 $14.37 - ------------------------------------------------------------------------------------------------------------------------------------ Ratios and supplemental data - ------------------------------------------------------------------------------------------------------------------------------------ Total return at net asset value (%)(a) 15.95* 16.21 31.57 14.97 27.42* - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $356,866 $322,277 $208,656 $87,782 $19,004 - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of expenses to average net assets (%)(b) .71* 1.46 1.52 1.50 1.06* - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of net investment income (loss) to average net assets (%) (.37)* (.69) (.50) (.57) (.24)* - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover (%) 36.72* 60.04 59.77 57.92 65.43 - ------------------------------------------------------------------------------------------------------------------------------------ + Commencement of operations. * Not annualized. (a) Total return assumes dividend reinvestment and does not reflect the effect of sales charges. (b) The ratio of expenses to average net assets for the period ended July 31, 1996 and thereafter, includes amounts paid through brokerage services and expense offset arrangements. Prior period ratios exclude these amounts (Note 2). (c) 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 - ------------------------------------------------------------------------------------------------------------------------------------ 1999 1998 1997 1996 1995 1994 - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $21.66 $19.70 $15.85 $14.48 $11.22 $11.24 - ------------------------------------------------------------------------------------------------------------------------------------ Investment operations - ------------------------------------------------------------------------------------------------------------------------------------ Net investment income (loss) --(c) .01(c) .04(c) .02(c) .03 -- - ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) on investments 3.33 3.16 4.90 2.21 3.74 (.02) - ------------------------------------------------------------------------------------------------------------------------------------ Total from investment operations 3.33 3.17 4.94 2.23 3.77 (.02) - ------------------------------------------------------------------------------------------------------------------------------------ Less distributions: - ------------------------------------------------------------------------------------------------------------------------------------ From net realized gain on investments (1.59) (1.21) (1.09) (.86) (.51) -- - ------------------------------------------------------------------------------------------------------------------------------------ Total distributions (1.59) (1.21) (1.09) (.86) (.51) -- - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $23.40 $21.66 $19.70 $15.85 $14.48 $11.22 - ------------------------------------------------------------------------------------------------------------------------------------ Ratios and supplemental data - ------------------------------------------------------------------------------------------------------------------------------------ Total return at net asset value (%)(a) 16.34* 17.12 32.56 15.85 34.90 (0.18)* - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $1,773,352 $1,476,485 $1,061,087 $709,595 $351,817 $82,102 - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of expenses to average net assets (%)(b) .33* .71 .77 .77 .83 .31* - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of net investment income (loss) to average net assets (%) --* .06 .25 .15 .39 (.05)* - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover (%) 36.72* 60.04 59.77 57.92 65.43 57.74 - ------------------------------------------------------------------------------------------------------------------------------------ + Commencement of operations. * Not annualized. (a) Total return assumes dividend reinvestment and does not reflect the effect of sales charges. (b) The ratio of expenses to average net assets for the period ended July 31, 1996 and thereafter, includes amounts paid through brokerage services and expense offset arrangements. Prior period ratios exclude these amounts (Note 2). (c) 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, 1999 (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 approximately eight years, do not pay a front-end sales charge but pay a higher ongoing distribution fee than class A shares, and are 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 shares, class B and class M shares, but do not bear a distribution fee. Class Y shares are sold to defined contribution plans that invest at least $150 million in a combination of Putnam funds and 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 consistently followed by the fund in the preparation of its financial statements. The preparation of financial statements is in conformity with generally accepted accounting principles and requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. Actual results could differ from those estimates. A) Security valuation Investments for which market quotations are readily available are stated at market value, which is determined using the last reported sale price, or, if no sales are reported -- as in the case of some securities traded over-the-counter -- the last reported bid price. Securities quoted in foreign currencies are translated into U.S. dollars at the current exchange rate. Short-term investments having remaining maturities of 60 days or less are stated at amortized cost, which approximates market 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. Collateral for certain tri-party repurchase agreements is held at the counterparty's custodian in a segregated account for the benefit of the fund and the counterparty. 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, and 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 realized 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 six months ended January 31, 1999, 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. 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 and 0.475% of the next $5 billion, 0.455% of the next $5 billion, 0.44% of the next $5 billion, 0.43% thereafter. As part of the subcustodian contract between the subcustodian bank and the PFTC, the subcustodian bank has a lien on the securities of the fund to the extent permitted by the fund's investment restrictions to cover any advances made by the subcustodian bank for the settlement of securities purchased by the fund. At January 31, 1999, the payable to the subcustodian bank represents the amount due for cash advance for the settlement of a security purchased. 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, 1999, fund expenses were reduced by $1,490,883 under expense offset arrangements with PFTC and brokerage service arrangements. Investor servicing and custodian fees reported in the Statement of operations exclude these credits. The fund could have invested a portion of 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 $15,000 has been allocated to the fund, and an additional fee for each Trustee's meeting attended. Trustees who are not interested persons of Putnam Management and who serve on committees of the Trustees receive additional fees for attendance at certain committee meetings. The fund has adopted a Trustee Fee Deferral Plan (the "Deferral Plan") which allows the Trustees to defer the receipt of all or a portion of Trustees Fees payable on or after July 1, 1995. The deferred fees remain in the fund and are invested in certain Putnam funds until distribution in accordance with the Deferral Plan. The fund has adopted an unfunded noncontributory defined benefit pension plan (the "Pension Plan") covering all Trustees of the fund who have served as Trustee for at least five years. Benefits under the Pension Plan are equal to 50% of the Trustee's average total retainer and meeting fees for the three years preceding retirement. Pension expense for the fund is included in Compensation of Trustees in the Statement of operations. Accrued pension liability is included in Payable for compensation of Trustees in the Statement of assets and liabilities. The fund has adopted distribution plans (the "Plans") with respect to its class A, class B and class M shares pursuant to Rule 12b-1 under the Investment Company Act of 1940. The purpose of the Plans is to compensate Putnam Mutual Funds Corp., a wholly-owned subsidiary of Putnam Investments Inc., for services provided and expenses incurred by it in distributing shares of the fund. The Plans provide for payments by the fund to Putnam Mutual Funds Corp. at an annual rate up to 0.35%, 1.00% and 1.00% of the average net assets attributable to class A, class B and class M shares, respectively. The Trustees have approved payment by the fund 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, 1999, Putnam Mutual Funds Corp., acting as underwriter received net commissions of $2,297,139 and $61,175 from the sale of class A and class M shares, respectively and $4,952,671 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, 1999, Putnam Mutual Funds Corp., acting as underwriter received $74,380 on class A redemptions. Note 3 Purchase and sales of securities During the six months ended January 31, 1999, purchases and sales of investment securities other than U.S. government obligations and short-term investments aggregated $8,253,723,939 and $7,937,023,191, 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, 1999, there was an unlimited number of shares of beneficial interest authorized. Transactions in capital shares were as follows: Six months ended January 31, 1999 - ----------------------------------------------------------------------------- Class A Shares Amount - ----------------------------------------------------------------------------- Shares sold 96,789,360 $1,968,246,911 - ----------------------------------------------------------------------------- Shares issued in connection with reinvestment of distributions 49,584,353 1,006,066,315 - ----------------------------------------------------------------------------- 146,373,713 2,974,313,226 Shares repurchased (86,499,868) (1,759,364,628) - ----------------------------------------------------------------------------- Net increase 59,873,845 $1,214,948,598 - ----------------------------------------------------------------------------- Year ended July 31, 1998 - ----------------------------------------------------------------------------- Class A Shares Amount - ----------------------------------------------------------------------------- Shares sold 171,955,043 $3,517,913,589 - ----------------------------------------------------------------------------- Shares issued in connection with reinvestment of distributions 37,008,241 676,509,789 - ----------------------------------------------------------------------------- 208,963,284 4,194,423,378 Shares repurchased (132,964,406) (2,708,486,833) - ----------------------------------------------------------------------------- Net increase 75,998,878 $1,485,936,545 - ----------------------------------------------------------------------------- Six months ended January 31, 1999 - ----------------------------------------------------------------------------- Class B Shares Amount - ----------------------------------------------------------------------------- Shares sold 40,120,498 $ 763,548,684 - ----------------------------------------------------------------------------- Shares issued in connection with reinvestment of distributions 27,943,032 530,077,635 - ----------------------------------------------------------------------------- 68,063,530 1,293,626,319 Shares repurchased (44,744,348) (849,295,257) - ----------------------------------------------------------------------------- Net increase 23,319,182 $ 444,331,062 - ----------------------------------------------------------------------------- Year ended July 31, 1998 - ----------------------------------------------------------------------------- Class B Shares Amount - ----------------------------------------------------------------------------- Shares sold 87,432,869 $1,694,803,885 - ----------------------------------------------------------------------------- Shares issued in connection with reinvestment of distributions 20,772,542 359,571,774 - ----------------------------------------------------------------------------- 108,205,411 2,054,375,659 Shares repurchased (52,505,238) (1,023,763,961) - ----------------------------------------------------------------------------- Net increase 55,700,173 $1,030,611,698 - ----------------------------------------------------------------------------- Six months ended January 31, 1999 - ----------------------------------------------------------------------------- Class M Shares Amount - ----------------------------------------------------------------------------- Shares sold 3,160,793 $ 62,410,726 - ----------------------------------------------------------------------------- Shares issued in connection with reinvestment of distributions 1,234,366 24,453,658 - ----------------------------------------------------------------------------- 4,395,159 86,864,384 Shares repurchased (3,905,954) (79,808,023) - ----------------------------------------------------------------------------- Net increase 489,205 $ 7,056,361 - ----------------------------------------------------------------------------- Year ended July 31, 1998 - ----------------------------------------------------------------------------- Class M Shares Amount - ----------------------------------------------------------------------------- Shares sold 7,899,365 $ 158,011,193 - ----------------------------------------------------------------------------- Shares issued in connection with reinvestment of distributions 842,975 15,156,766 - ----------------------------------------------------------------------------- 8,742,340 173,167,959 Shares repurchased (4,204,444) (84,838,578) - ----------------------------------------------------------------------------- Net increase 4,537,896 $ 88,329,381 - ----------------------------------------------------------------------------- Six months ended January 31, 1999 - ----------------------------------------------------------------------------- Class Y Shares Amount - ----------------------------------------------------------------------------- Shares sold 13,740,337 $293,983,127 - ----------------------------------------------------------------------------- Shares issued in connection with reinvestment of distributions 5,175,749 106,713,548 - ----------------------------------------------------------------------------- 18,916,086 400,696,675 Shares repurchased (11,300,930) (235,666,691) - ----------------------------------------------------------------------------- Net increase 7,615,156 $165,029,984 - ----------------------------------------------------------------------------- Year ended July 31, 1998 - ----------------------------------------------------------------------------- Class Y Shares Amount - ----------------------------------------------------------------------------- Shares sold 24,981,685 $517,221,628 - ----------------------------------------------------------------------------- Shares issued in connection with reinvestment of distributions 3,945,937 73,039,295 - ----------------------------------------------------------------------------- 28,927,622 590,260,923 Shares repurchased (14,640,061) (302,770,062) - ----------------------------------------------------------------------------- Net increase 14,287,561 $287,490,861 - ----------------------------------------------------------------------------- Note 5 Transactions with Affiliated Issuers Transactions during the year with companies in which the fund owned at least 5% of the voting securities were as follows: Purchase Sales Dividend Market Affiliates cost cost Income Value - ----------------------------------------------------------------------------- Name of affiliate - ----------------------------------------------------------------------------- Dollar Tree Stores $ 6,375,415 $ 2,582,841 $ -- $ 183,364,710 Electronic Arts -- -- -- 131,902,269 Linear Technology Corp. 73,669,888 19,769,903 539,833 394,204,938 Luxotica Group SPA ADR 4,596,596 -- -- 51,145,456 National Oilwell, Inc. 2,383,878 30,709,399 -- 22,600,500 Office Depot Inc. 20,047,719 45,730,962 -- 253,889,234 OfficeMax, Inc. -- 19,442,114 -- 45,368,325 Parametric Technology Corp. 69,463,445 -- -- 183,107,695 Telecom-TCI Ventures Group Class A 13,632,293 -- -- 726,556,123 Thermo Cardio Systems, Inc. 1,034,072 -- -- 21,676,314 WestWood One, Inc. -- -- -- 56,671,875 - ----------------------------------------------------------------------------- Totals $191,203,306 $118,235,219 $ 539,833 $2,070,487,439 PUTNAM GROWTH FUNDS Asia Pacific Growth Fund Capital Appreciation Fund [DBL. DAGGER] Capital Opportunities Fund Diversified Equity Trust Europe Growth Fund Global Growth Fund Global Natural Resources Fund Growth Opportunities Fund Health Sciences Trust International Growth Fund International New Opportunities Fund Investors Fund New Opportunities Fund [DBL. DAGGER] OTC & Emerging Growth Fund Research Fund Vista Fund Voyager Fund Voyager Fund II PUTNAM GROWTH AND INCOME FUNDS Balanced Retirement Fund Convertible Income-Growth Trust Equity Income Fund The George Putnam Fund of Boston Global Growth and Income Fund The Putnam Fund for Growth and Income Growth and Income Fund II International Growth and Income Fund New Value Fund Utilities Growth and Income Fund PUTNAM INCOME FUNDS American Government Income Fund Diversified Income Trust Global Governmental Income Trust High Quality Bond Fund + High Yield Advantage Fund [DBL. DAGGER] High Yield Total Return Fund High Yield Trust [DBL. DAGGER] High Yield Trust II Income Fund Intermediate U.S. Government Income Fund Money Market Fund ** Preferred Income Fund Strategic Income Fund * U.S. Government Income Trust PUTNAM TAX-FREE INCOME FUNDS Municipal Income Fund Tax Exempt Income Fund Tax Exempt Money Market Fund** Tax-Free High Yield Fund Tax-Free Insured Fund State tax-free income funds [SECTION MARK] Arizona, California, Florida, Massachusetts, Michigan, Minnesota, New Jersey, New York, Ohio and Pennsylvania State tax-free money market funds [SECTION MARK] California, New York LIFESTAGE SM FUNDS Putnam Asset Allocation Funds-three investment portfolios that spread your money across a variety of stocks, bonds, and money market investments. The three portfolios: Asset Allocation: Balanced Portfolio Asset Allocation: Conservative Portfolio Asset Allocation: Growth Portfolio * Formerly Putnam Diversified Income Trust II + Formerly Putnam Federal Income Trust [DBL. DAGGER] Closed to new investors. Some exceptions may apply. Contact Putnam for details. [SECTION MARK] Not available in all states. **An investment in a money market fund is neither insured nor guaranteed by the U.S. government. These funds are managed to maintain a price of $1.00 per share, although there is no assurance that this price will be maintained in the future. Please call your financial advisor or Putnam at 1-800-225-1581 to obtain a prospectus for any Putnam fund. It contains more complete information, including charges and expenses. Please read it carefully before you invest or send money. Fund information INVESTMENT MANAGER Putnam Investment Management, Inc. One Post Office Square Boston, MA 02109 MARKETING SERVICES Putnam Mutual Funds Corp. One Post Office Square Boston, MA 02109 CUSTODIAN Putnam Fiduciary Trust Company LEGAL COUNSEL Ropes & Gray TRUSTEES George Putnam, Chairman William F. Pounds, Vice Chairman John A. Hill, Vice Chairman Jameson Adkins Baxter Hans H. Estin Ronald J. Jackson Paul L. Joskow Elizabeth T. Kennan Lawrence J. Lasser John H. Mullin III Robert E. Patterson Donald S. Perkins George Putnam, III A.J.C. Smith W. Thomas Stephens W. Nicholas Thorndike OFFICERS George Putnam President Charles E. Porter Executive Vice President Patricia C. Flaherty Senior Vice President John D. Hughes Senior Vice President and Treasurer Lawrence J. Lasser Vice President Gordon H. Silver Vice President Ian C. Ferguson Vice President Brett C. Browchuk Vice President Roland W. Gillis Vice President Charles H. Swanberg Vice President Robert R. Beck Vice President and Fund Manager Michael P. Stack Vice President and Fund Manager Michael E. Nance Vice President and Fund Manager Richard A. Monaghan Vice President John R. Verani Vice President Beverly Marcus Clerk and Assistant Treasurer This report is for the information of shareholders of Putnam 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 www.putnaminv.com - --------------------- BULK RATE U.S. POSTAGE PAID PUTNAM INVESTMENTS - --------------------- SA016 49944 - 007/883/530 3/99 PUTNAM INVESTMENTS [SCALE LOGO OMITTED] - -------------------------------------------------------------------------- Putnam Voyager Fund Supplement to Semiannual Report dated 1/31/99 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 $150 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 annual report. ANNUAL RESULTS AT A GLANCE - -------------------------------------------------------------------------- Total return for periods ended 1/31/99 NAV 6 months 16.34% 1 year 30.90 5 years 157.48 Annual average 20.82 10 years 535.51 Annual average 20.31 Life of fund Annual average (since class A inception, 4/1/69) 14.62 - -------------------------------------------------------------------------- Share value: NAV 7/31/98 $21.66 1/31/99 $23.40 - -------------------------------------------------------------------------- Distributions: No. Income Capital gains Total 1 $0.000 $1.585 $1.585 - -------------------------------------------------------------------------- Please note that past performance does not indicate future results. Returns shown for class Y shares for periods prior to their inception are derived from the historical performance of class A shares, adjusted to reflect the initial sales charge currently applicable to class A shares. These returns have not been adjusted to reflect differences in operating expenses which, for class Y shares, are lower than the operating expenses applicable to class A shares. All returns assume reinvestment of distributions at net asset value. Performance data reflects an expense limitation previously in effect. Without the expense limitation, total returns would have been lower. 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-----