-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, DUDfKVI6R9HXzNjwt8OaL+3Cnjzk+H/J7p6YwhLt8S7PrhQZEzrKQv7E6drHgaVg BYysq9DyPb0CLUG5eahNkg== 0000950146-95-000450.txt : 19950804 0000950146-95-000450.hdr.sgml : 19950804 ACCESSION NUMBER: 0000950146-95-000450 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950531 FILED AS OF DATE: 19950803 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PUTNAM NEW YORK TAX EXEMPT MONEY MARKET FUND CENTRAL INDEX KEY: 0000821546 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 042980863 STATE OF INCORPORATION: MA FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-05335 FILM NUMBER: 95558678 BUSINESS ADDRESS: STREET 1: ONE POST OFFICE SQ STREET 2: MAILSTOP A14 CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 6172921536 N-30D 1 NEW_YORK_TAX_EXEMPT_MONEY_MARKET_FUND Putnam New York Tax Exempt Money Market Fund [sheet music photo] SEMIANNUAL REPORT May 31, 1995 [Putnam scales logo] B O S T O N L O N D O N T O K Y O Performance highlights > "Money funds maintain a competitive advantage over bank products and their lead is growing wider." - -- Money Market Insight, June 1995 SEMIANNUAL 1995 RESULTS AT A GLANCE Total return NAV - --------------------------------------------------------------------------- (change in value during period plus reinvested distributions) 6 months ended 5/31/95 1.64% - --------------------------------------------------------------------------- Distributions:(1) No. Income Total - --------------------------------------------------------------------------- 6 $0.016285 $0.016285 - --------------------------------------------------------------------------- Taxable Taxable Current return: Fund(2) equivalent (a) equivalent (b) - --------------------------------------------------------------------------- End of period 7-day yield 3.48% 6.24% 6.55% 30-day yield 3.56 6.38 6.70 Performance data represent past results. For performance over longer periods, see page 7. An investment in the fund is neither insured nor guaranteed by the U.S. Government. There can be no assurance that the Fund will be able to maintain a stable net asset value of $1.00 per share. (1)Capital gains are taxable for federal and, in most cases, state tax purposes. For some investors, investment income may also be subject to the federal alternative minimum tax. Investment income may be subject to state and local taxes. (2)The yield is the rate at which an investment earns interest income. The 7- and 30-day yields are the two most common gauges for measuring money market mutual fund performance. Taxable equivalent assumes (a) maximum 44.19% federal and New York State tax rates and (b) maximum 46.88% combined federal, New York State and City tax rates. Results for investors subject to lower tax rates would not be as advantageous. From the Chairman [photo of George Putnam] (c) Karsh, Ottawa Dear Shareholder: Putnam New York Tax Exempt Money Market Fund was clearly among the beneficiaries of the improved mood in the municipal bond market in the past few months. At the same time, tight supplies have made the task of finding appropriate securities somewhat challenging for Fund Manager Lindsey Callen during the first half of the fiscal year, the six months ended May 31, 1995. Because short-term interest rates peaked this spring, and we believe they are likely to decrease in the short-term, Lindsey is looking for opportunities to lengthen the average maturity of the portfolio, placing the fund in a more neutral position. At the same time, she is optimistic about prospects for the remainder of fiscal 1995. The recovery in the tax-exempt bond market, while substantial, has lagged that of other fixed-income markets, leading her to believe the rally may have some staying power. Municipal bond investors already have shaken off the jitters ignited by a flat-tax proposal recently thrown into the legislative hopper. In its purest form, a flat tax would eliminate the federal income tax exemption on municipal bonds. We do not believe Congress would enact any such restrictive provision. Lindsey provides more discussion of these and other issues in the report that follows. Respectfully yours, [signature of George Putnam] George Putnam Chairman of the Trustees July 19, 1995 Report from the Fund Manager Lindsey M. Callen For the six months ended May 31, 1995, Putnam New York Tax Exempt Money Market Fund once again delivered a steady stream of double-tax-free income while maintaining its hallmarks of superior quality and a stable $1.00 share price. The higher short-term interest rates we have seen since early in 1994 prevailed for at least part of the period, providing a relatively favorable investment climate for your fund. During the initial months of the period, data from key economic sectors, such as manufacturing and employment, continued to demonstrate robust growth in the U.S. economy. This strength motivated the Federal Reserve Board to maintain its anti-inflation policy by raising short-term interest rates once more, in February 1995. However, by early March, weakness had begun to emerge in housing sales and consumer spending. Economic reports during April and May confirmed the economy's slowdown. In response, the Fed opted not to raise interest rates at its March and May meetings, instead adopting a "wait-and-see" attitude until the economy's signals become more definitive. > SEEKING VALUE AND QUALITY AMID TIGHT SUPPLY Because the fiscal year for many municipalities begins in June or July, the supply of new-issue tax-exempt securities is usually at a low ebb between January and June of each year. This semiannual period has been no exception. In addition, many investors have been re-assessing the credit quality of their portfolios in the wake of events in Orange County last December, when defaults rocked the entire tax-exempt securities market. Your fund has always emphasized superior quality investments, and we plan to be even more demanding when scrutinizing potential investments in the future. Currently, approximately 75% of your fund's investments are insured or backed by bank letters of credit. Even for those issues rated in the highest categories by nationally recognized rating services, this extra degree of credit assurance is a valued feature and makes many of our holdings among the highest-quality securities available. We intend to maintain the portfolio's high percentage of insured and bank-backed securities going forward, and may even expand it, should appropriate investment opportunities arise. The combination of reduced securities supply and the cautious, re-evaluatory stance of investors produced a rather quiet period for the market. While prices of tax-exempt securities fell initially when Orange County announced its bankruptcy, the market rebounded after January. Nonetheless, trading activity remained quite low for the rest of the period. In this environment, we purchased few new securities and concentrated instead on managing the portfolio to maximize its income potential in the current interest-rate climate. > CREDIT CONSCIOUSNESS HERALDS MARKET CHANGES It appears that issuers of tax-exempt money market securities will face stricter disclosure and credit quality requirements in the fiscal year ahead. While simply-structured tax-exempt money market instruments have always been the mainstay of your fund's portfolio, many comparable mutual funds had recently begun to purchase derivative securities in order to reach for additional income. Unfortunately, the value of many of these securities plummeted when interest rates rose. This caused liquidity problems for many funds and contributed to Orange County's bankruptcy. As a result of recent credit and liquidity concerns, more investors have come to realize the wisdom of your fund's conservative approach. Even the credit quality of many traditional instruments PERFORMANCE COMPARISONS (5/31/95) Current return After tax return* - --------------------------------------------------------------------------- Passbook savings account 2.17% 1.15% - --------------------------------------------------------------------------- Taxable money market fund 7-day yield 5.51 2.93 - --------------------------------------------------------------------------- 3-month certificate of deposit 4.25 2.26 - --------------------------------------------------------------------------- Putnam New York Tax Exempt Money Market Fund (7-day yield) 3.48 3.48 The principal value of money market mutual funds is uninsured and designed to be fixed, while distributions vary daily. The principal value on passbook savings and bank CDs are generally insured up to certain limits by state and federal agencies. Unlike money market funds, early withdrawals from bank CDs may be subject to substantial penalties. Investment returns will fluctuate. Sources: Bank of Boston (passbook savings), Bank Rate Monitor (3-month CDs), IBC/Donaghue's Money Fund Report (taxable money market fund 7-day yield). *Calculated on the basis of the 46.88% combined federal, New York State and City tax rates. is now being scrutinized more closely. Many municipalities may soon be forced to provide additional quality assurances such as bank letters of credit or to offer higher rates of interest to attract investors. In this newly credit-conscious environment, we will be redoubling our efforts to find well-valued securities that meet our strict criteria for quality, liquidity, and price sensitivity. > MAINTAINING A NEUTRAL, FLEXIBLE STANCE With interest rate increases slowing down at the beginning of the period and rates actually starting to trend downward in May, we have begun to lengthen the average maturity of the portfolio slightly. Compared to the more aggressive shorter average maturity we had adopted when interest rates were rising steadily, this places the fund in a more neutral position. This slight extension of portfolio maturity also enables the fund to avoid reinvestment during July, when investor demand is expected to surge due to the unusually large number of tax-exempt securities that will be maturing or reaching their call dates. We believe that this high demand should more than cancel the cyclical, seasonal increase in tax-exempt securities supply, and could push down the yields on new issues. We have also begun to re-evaluate our floating-rate securities position, which was developed to maximize the fund's income when interest rates were moving steadily upward. Going forward, we intend to target those floating-rate securities whose yields reset at longer intervals rather than those that reset on a weekly basis. Together with our extension of portfolio average maturity, these moves are designed to help the fund benefit from potential interest-rate increases while protecting it from any declines. > LOOKING AHEAD We share the opinion of the Federal Reserve's Board of Governors that it is too early to tell whether the economy is indeed decelerating or simply taking a short breather on the way to resuming growth. Given these circumstances, we are keeping the fund flexible. We expect to maintain a relatively neutral average portfolio maturity while we continue to monitor the economy and the Fed carefully for signs of change. Meanwhile, we believe our focus on traditional high-quality money market instruments should enable the fund to maintain the stability that is most shareholders' top priority. The views expressed throughout the report are exclusively those of Putnam Management. They are not meant as investment advice. Performance summary This section provides, at a glance, information about your fund's performance. Total return shows how the value of the fund's shares changed over time, assuming you held the shares through the entire period and reinvested all distributions back into the fund. We show total return in two ways: On a cumulative long-term basis and how the fund might have grown each year, on average, over varying periods (see the tables below). We provide total returns for varying lengths of time ending on May 31, 1995, the close of the fiscal period covered in this report. To make comparisons with other investments easier, we also provide data for periods ending on June 30, 1995, the most recent calendar quarter. Finally, we have provided terms and definitions as they apply to your fund. Performance should always be considered in light of a fund's investment strategy. Putnam New York Tax Exempt Money Market Fund is designed for investors seeking current income free from federal, New York State and City income tax and consistent with capital preservation, stability of principal, and liquidity. TOTAL RETURN FOR PERIODS ENDED 5/31/95 Lipper New York Fund shares Money Market Consumer at NAV Fund Average Price Index - --------------------------------------------------------------------------- 6 months 1.64% 1.65% 1.67% - --------------------------------------------------------------------------- 1 year 2.74 2.84 3.19 - --------------------------------------------------------------------------- 5 years 15.23 15.47 17.80 Annual average 2.88 2.92 3.33 - --------------------------------------------------------------------------- Life of fund 30.70 31.05 32.00 Annual average 3.59 3.63 3.72 - --------------------------------------------------------------------------- Fund performance data do not take into account any adjustment for taxes payable on reinvested distributions. The fund began operations on 10/26/87. Performance data represent past results and are not indicative of future returns. Investment returns will fluctuate. TOTAL RETURN FOR PERIODS ENDED 6/30/95 (most recent calendar quarter) NAV - --------------------------------------------------------------------------- 1 year 2.85% - --------------------------------------------------------------------------- 5 years 15.06 Annual average 2.85 - --------------------------------------------------------------------------- Life of fund 31.05 Annual average 3.58 - --------------------------------------------------------------------------- Performance data represent past results. There can be no assurance that the Fund will be able to maintain a stable net asset value of $1.00 per share. Performance data reflect an expense limitation previously in effect. Without the expense limitation, total returns would have been lower. TERMS AND DEFINITIONS Net asset value (NAV) is the value of all fund assets, minus liabilities, divided by the number of outstanding shares. Lipper New York Tax Exempt Money Market Fund Average, is an arithmetic average of the total return of all the New York State tax exempt money market mutual funds tracked by Lipper Analytical Services. Lipper is an independent rating organization for the mutual fund industry. Lipper rankings vary for other periods. The fund's holdings do not match those in the Lipper average. Consumer Price Index (CPI) is a commonly used measure of inflation. It does not represent an investment return. Portfolio of investments owned May 31, 1995 (Unaudited)
MUNICIPAL BONDS AND NOTES (79.4%)* PRINCIPAL AMOUNT RATINGS** VALUE New York - ------------------------------------------------------------------------------------ $2,000,000 Deer Park Union Frees Sch. Dist TAN 4-1/4s, 6/28/95 MIG1 $ 2,000,815 1,900,000 Erie Cnty., RAN (Union Bank of Switzerland LOC), 4-3/4s, 8/15/95 MIG1 1,900,000 1,000,000 Erie Cnty., Wtr. Auth. VRDN, SerA, AMBAC, 3.4s,12/1/06 VMIG1 1,001,501 2,165,000 Monroe Cnty., Indl. Dev. Agcy. Notes VRDN (Columbia Sussex) (Cumberland Federal Savings and Loan LOC), 5s, 11/1/14 A-1+ 2,165,000 NY City, Hsg. Dev. Corp. Mtge. VRDN (Parkgate Tower Project) (Citibank LOC), 565,000 3.5s, 12/1/7 VMIG1 565,000 2,000,000 (Tribeca Towers), Ser. A, 3.45s, 12/15/24 VMIG1 2,000,000 1,000,000 NY City, Indl. Dev. Agcy. VRDN (Bank of New York LOC), 4s, 12/1/01 A-1 1,000,000 2,000,000 NY State Dorm. Auth. VRDN (Miriam Osborn Memorial Home)(Banque Paribas LOC), Ser. A, 3.45s, 7/1/24 VMIG1 2,000,000 NY State Energy Research & Dev. Auth. Poll. Control VRDN 1,000,000 (Niagara Mohawk Power Project) (Toronto Dominion LOC), Ser. A, 4.8s, 7/1/15 A-1+ 1,000,000 3,000,000 (Lilco Project)(Deutsche Bank LOC), Ser. A, 4.7s, 3/1/16 VMIG1 3,000,000 1,000,000 (Rochester Gas & Electric Corp.) (Bank of New York LOC), 3.9s, 10/1/14 P-1 1,000,000 2,000,000 (NY Elec. & Gas)(Union Bank of Switzerland LOC), Ser. D, 4.75s, 10/1/29 VMIG1 2,000,000 NY State Job Dev. Auth. VRDN (The Sumitomo Bank LOC), 465,000 Ser. B-1 to 6, 4.2s, 3/1/00 VMIG1 465,000 1,615,000 Ser. C-1 to 12, 4.2s, 3/1/00 VMIG1 1,615,000 195,000 Ser. E-1-55, 4.1s, 3/1/99 VMIG1 195,000 1,500,000 NY State Local Govt. Asst. Corp. VRDN (Swiss Bank Corp. Credit Suisse LOC), 3.2s, 4/1/23 VMIG1 1,500,000 2,000,000 Nassau Cnty., RAN Ser. D, 4-3/4s, 8/15/95 MIG1 2,002,528 2,000,000 NY City, Floating Rate Notes 4.1831s, 6/30/95 MIG1 2,000,000 2,000,000 North Hempstead, Solid Waste Mgmt. Auth. VRDN (National Westminster Bank PLC LOC), Ser. A, 3.35s, 2/1/12 VMIG1 2,000,000 1,000,000 Roslyn Union Free Sch. Dist. TAN 4-1/4s, 6/29/95 Aa 1,000,498 2,000,000 Triborough Brdg. & Tunnel Auth. Special Oblig. VRDN FGIC, 3.3s, 1/1/24 VMIG1 2,000,000 - ------------------------------------------------------------------------------------ Total Municipal Bonds and Notes (cost $32,410,342) $32,410,342 - ------------------------------------------------------------------------------------
MUNICIPAL COMMERCIAL PAPER (28.2%)* PRINCIPAL AMOUNT RATINGS** VALUE - -------------------------------------------------------------------------------- $2,000,000 NY City, GO MCP (Chemical Bank LOC), 4.1s, 7/18/95 VMIG1 $ 2,000,000 2,500,000 NY City, Muni Wtr. Fin. MCP (Canadian Imperial Bank of Commerce LOC), 4.1s, 7/20/95 A-1+ 2,500,000 3,000,000 NY State Pwr.Auth. MCP 3.95s, 6/12/95 P-1 3,000,000 2,040,000 NY State Dorm Auth. MCP (Memorial Sloan-Kettering Cancer Center) (Chemical Bank LOC), 4s, 6/2/95 P-1 2,040,000 2,000,000 NY State Env. Fac. MCP (General Electric Project), 3.9s, 8/1/95 P-1 2,000,000 - -------------------------------------------------------------------------------- Total Municipal Commercial Paper (cost $11,540,000) $11,540,000 - -------------------------------------------------------------------------------- Total Investments (cost $43,950,342)*** $43,950,342 - --------------------------------------------------------------------------------
*Percentages indicated are based on total net assets of $40,830,763, which correspond to a net asset value per share of $1.00 **The Moody's or Standard & Poor's ratings indicated are believed to be the most recent ratings available at May 31, 1995, for the securities listed. Ratings are generally ascribed to securities at the time of issuance. While the agencies may from time to time revise such ratings, they undertake no obligations do so, and the ratings do not necessarily represent what the agencies would ascribe to these securities at May 31, 1995. Securities rated by Putnam are indicated by "/P" and are not publicly rated. Moody's Investors Service, Inc. and Standard & Poor's Corp. are the leading independent rating agencies for debt securities. "Moody's Investment Grade", or "MIG", for most short-term municipal obligations, adding a "V" ("VMIG") for bonds with a demand or variable feature; the designation "P" is used for tax exempt commercial paper. Standard & Poor's uses "SP" for notes maturing in three years or less, "A" for bonds with a demand or variable feature. Moody's Investor Service, Inc. MIG1/VMIG1= Best quality; strong protection of cash flow, superior liquidity and broad access to refinancing MIG2/VMIG2= High quality; ample protection of cash flow, liquidity support and ability to refinance AAA= Capacity to pay interest and repay principal is extremely strong. AA= Strong capacity to pay interest and repay principal and differs from the higher rated issues only in a small degree Standard & Poor's Corp. P-1= Superior capacity for repayment P-2= Strong capacity for repayment SP-1= Overwhelming safety characteristics SP-2= Strong capacity to pay principal and interest A-1+= Overwhelming degree of credit and protection A-1= Strong degree of safety A-2= Considered strong but lacks solid strength for timely repayment ***The aggregate identified cost on a tax basis is the same. The rates shown on VRDN are the current interest rates at May 31, 1995 which are subject to change based on the terms of the security. The fund had the following industry group concentrations greater than 10% on May 31, 1995 (as a percentage of net assets): Energy 22.8% Waste/Water 12.6% Key to Abbreviations AMBAC -- AMBAC Indemnity Corp. FGIC -- Federal Guaranty Insurance Corporation MCP -- Municipal Commercial Paper RAN -- Revenue Anticipation Notes TAN -- Tax Anticipation Notes VRDN -- Variable Rate Demand Notes The accompanying notes are an integral part of these financial statements. Statement of assets and liabilities May 31, 1995 (Unaudited) Assets - -------------------------------------------------------------------------- Investments in securities at amortized cost (Note 1) $43,950,342 - -------------------------------------------------------------------------- Interest and other receivables 414,394 - -------------------------------------------------------------------------- Receivable for shares of the fund sold 191,506 - -------------------------------------------------------------------------- Total assets 44,556,242 - -------------------------------------------------------------------------- Liabilities - -------------------------------------------------------------------------- Distributions payable to shareholders $ 85,541 - -------------------------------------------------------------------------- Payable to sub-custodian (Note 2) 3,518,467 - -------------------------------------------------------------------------- Payable for shares of the fund repurchased 72,462 - -------------------------------------------------------------------------- Payable for compensation of Manager (Note 2) 48,078 - -------------------------------------------------------------------------- Payable for administrative services (Note 2) 863 - -------------------------------------------------------------------------- Payable for compensation of Trustees (Note 2) 68 - -------------------------------------------------------------------------- Total liabilities 3,725,479 - -------------------------------------------------------------------------- Net assets $40,830,763 - -------------------------------------------------------------------------- Represented by - -------------------------------------------------------------------------- Paid-in capital (Note 4) $40,830,763 - -------------------------------------------------------------------------- Net asset value, offering and redemption price per share ($40,830,763 divided by 40,830,763 shares) $1.00 - -------------------------------------------------------------------------- The accompanying notes are an integral part of these financial statements. Statement of operations Six months ended May 31, 1995 (Unaudited) Tax exempt interest income $881,025 - ------------------------------------------------------------------ Expenses: - ------------------------------------------------------------------ Compensation of Manager (Note 2) $ 98,750 - ------------------------------------------------------------------ Compensation of Trustees (Note 2) 2,840 - ------------------------------------------------------------------ Reports to shareholders 6,954 - ------------------------------------------------------------------ Registration fees 4,400 - ------------------------------------------------------------------ Auditing 7,223 - ------------------------------------------------------------------ Legal 9,624 - ------------------------------------------------------------------ Administrative services (Note 2) 2,412 - ------------------------------------------------------------------ Other expenses 253 - ------------------------------------------------------------------ Total expenses 132,456 - ------------------------------------------------------------------ Net investment income 748,569 - ------------------------------------------------------------------ Net increase in net assets resulting from operations $748,569 - ------------------------------------------------------------------ The accompanying notes are an integral part of these financial statements. Statement of changes in net assets
Six months ended Year ended May 31 November 30 ---------------- ----------- 1995* 1994 - -------------------------------------------------------------------------------------------- Decrease in net assets - -------------------------------------------------------------------------------------------- Operations: - -------------------------------------------------------------------------------------------- Net investment income $ 748,569 $ 926,696 - -------------------------------------------------------------------------------------------- Net increase in net assets resulting from operations 748,569 926,696 - -------------------------------------------------------------------------------------------- Distributions to shareholders from: - -------------------------------------------------------------------------------------------- Net investment income (748,569) (926,696) - -------------------------------------------------------------------------------------------- Decrease from capital share transactions (Note 4) (3,984,238) (5,657,947) - -------------------------------------------------------------------------------------------- Total decrease in net assets (3,984,238) (5,657,947) - -------------------------------------------------------------------------------------------- Net assets - -------------------------------------------------------------------------------------------- Beginning of period 44,815,001 50,472,948 - -------------------------------------------------------------------------------------------- End of period $40,830,763 $44,815,001 - --------------------------------------------------------------------------------------------
*Unaudited. The accompanying notes are an integral part of these financial statements. Financial highlights (For a share outstanding throughout the period)
Six months ended May 31 Year ended November 30 ---------- -------------------------------------------------------- 1995* 1994 1993 1992 1991 1990 ---------- ------- ------- ------- ------- ------- Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 - ---------------------------------------------------------------------------------------------------------- Investment operations: - ---------------------------------------------------------------------------------------------------------- Net investment income .0163 .0188 .0165 .0259(a) .0399(a) .0497(a) - ---------------------------------------------------------------------------------------------------------- Net realized gain on investments -- -- .0001 -- -- -- - ---------------------------------------------------------------------------------------------------------- Total from investment operations .0163 .0188 $ .0166 $ .0259 $ .0399 $ .0497 - ---------------------------------------------------------------------------------------------------------- Less distributions from: Net investment income (.0163) (.0188) (.0165) (.0259) (.0399) (.0497) - ---------------------------------------------------------------------------------------------------------- Net realized gain on investments -- -- (.0001) -- -- -- - ---------------------------------------------------------------------------------------------------------- Total distributions (.0163) (.0188) (.0166) (.0259) (.0399) (.0497) - ---------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 - ---------------------------------------------------------------------------------------------------------- Total investment return at Net asset value (%) (b) 1.64(c) 1.90 1.67 2.62 4.07 5.09 - ---------------------------------------------------------------------------------------------------------- Net assets, End of period (in thousands) $40,831 $44,815 $50,473 $57,705 $64,286 $63,671 - ---------------------------------------------------------------------------------------------------------- Ratio of expenses to average Net assets (%) .30(c) 0.77 .91 .78(a) .80(a) .67(a) - ---------------------------------------------------------------------------------------------------------- Ratio of net investment income To average net assets (%) 1.69(c) 1.86 1.69 2.59(a) 3.96(a) 4.95(a) - ----------------------------------------------------------------------------------------------------------
* Unaudited. (a) Reflects an expense limitation. As a result of such limitation, expenses of the fund for the years ended November 30, 1992, 1991 and 1990 reflect reductions of $0.0024, $0.0034, and $0.0043 per share, respectively. (b) Total investment return assumes dividend reinvestment. (c) Not annualized. Notes to financial statements May 31, 1995 (Unaudited) Note 1 Significant accounting policies The fund is registered under the Investment Company Act of 1940, as amended, as a nondiversified, open-end management investment company. The fund seeks as high a level of current income exempt from federal, New York State and New York City personal income taxes as Putnam Investment Management believes is consistent with maintenance of liquidity and stability of principal. The fund invests primarily in a nondiversified portfolio of short-term New York tax exempt securities. The following is a summary of significant accounting policies consistently followed by the fund in the preparation of its financial statements. The policies are in conformity with generally accepted accounting principles. A) Security valuation The valuation of the fund's portfolio instruments is determined by means of the amortized cost method as set forth in Rule 2a-7 under the Investment Company Act of 1940. The amortized cost of an instrument is determined by valuing it at cost originally and thereafter amortizing any discount or premium from its face value at a constant rate until maturity. B) Security transactions Security transactions are accounted for on the trade date (date the order to buy or sell is executed). C) Federal income taxes It is the policy of the fund to distribute all of its income within the prescribed time and otherwise comply with the provisions of the Internal Revenue Code applicable to regulated investment companies. It is also the intention of the fund to distribute an amount sufficient to avoid imposition of any excise tax under Section 4982 of the Internal Revenue Code of 1986, as amended. Therefore, no provision has been made for federal taxes on income or capital gains on securities held and excise tax on income and capital gains. At November 30, 1994 the fund a capital loss carryover of approximately $6,605 which may be available to offset realized gains, if any. This amount will expire through November 30, 2002. To the extent that capital loss carryovers are used to offset realized capital gains, it is unlikely that gains so offset will be distributed to shareholders since any such distribution might be taxable as ordinary income. D) Interest income and distributions to shareholders Interest is recorded on the accrual basis. Income dividends (and distributions of capital gains, if any) are recorded daily by the fund and are distributed monthly to the shareholders. Note 2 Management fee, administrative services, and other transactions Compensation of Putnam Investment Management, Inc., the fund's Manager, a wholly-owned subsidiary of Putnam Investments, Inc., for management and investment advisory services is paid quarterly at an annual rate of 0.45% of the first $500 million of average net assets, 0.35% of the next $500 million, 0.30% of the next $500 million and 0.25% of any amount over $1.5 billion, subject to reduction in any year by the amount of certain brokerage commissions and fees (less expenses) received by affiliates of the Manager on the fund's portfolio transactions. The fund also reimburses the Manager for the compensation and related expenses of certain officers of the fund and their staff who provide administrative services to the fund. The aggregate amount of all such reimbursements is determined annually by the Trustees. Trustees of the fund receive an annual Trustee's fee of $400 and an additional fee for each Trustees' meeting attended. Trustees who are not interested persons of the Manager and who serve on committees of the Trustees receive additional fees for attendance at certain committee meetings. Custodial functions for the fund 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. As part of the custodian contract between PFTC and the subcustodian bank, the subcustodian 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 for the settlement of securities purchased by the fund. At May 31, 1995, the payable to subcustodian represents the amount due for cash advanced for the settlement of securities purchased. Investor servicing and custodian fees reported in the Statement of operations for the six months ended May 31, 1995 have been reduced by credits allowed by PFTC. Note 3 Purchases and sales of securities During the six months ended May 31, 1995, purchases and sales (including maturities) of investment securities (all short-term obligations) aggregated $147,500,000 and $201,720,000 respectively. In determining the net gain or loss on securities sold, the cost of securities has been determined on the identified cost basis. Note 4 Capital shares At May 31, 1994, there was an unlimited number of shares of beneficial interest authorized. Transactions in capital shares, at a constant net asset value of $1.00 per share, were as follows: Six months ended Year ended May 31 November 30 - ------------------------------------------------------------------------------- 1995 1994 - ------------------------------------------------------------------------------- Shares sold 77,037,074 286,251,626 - ------------------------------------------------------------------------------- Shares issued in connection with reinvestment of distributions 651,635 862,975 - ------------------------------------------------------------------------------- 77,688,709 287,114,601 - ------------------------------------------------------------------------------- Shares repurchased (81,672,947) (292,772,548) - ------------------------------------------------------------------------------- Net decrease (3,984,238) (5,657,947) - ------------------------------------------------------------------------------- Our commitment to quality service > CHOOSE AWARD-WINNING SERVICE. Putnam Investor Services has won the DALBAR Quality Tested Service Seal every year since the award's 1990 inception. DALBAR, an independent research firm, ran more than 10,000 tests of 38 shareholder service components. In every category, Putnam outperformed the industry standard. > HELP YOUR INVESTMENT GROW. You can set up a regular program for investing with as little as $25 a month from a Putnam money market fund or your own bank account.* > SWITCH FUNDS EASILY. You can move money from one account to another with the same class of shares without a service charge. (This privilege is subject to change or termination.) > ACCESS YOUR MONEY QUICKLY. You can get checks sent regularly or redeem shares any business day at the then-current net asset value, which may be more or less than the original cost of the shares. For details about any of these or other services, contact your financial advisor or call the toll-free number shown below and speak with a helpful Putnam representative. > To make an additional investment in this or any other Putnam fund, contact your financial advisor or call our toll-free number: 1-800-225-1581. *Regular investing, of course, does not guarantee a profit or protect against a loss in a declining market. Investors should consider their ability to continue purchasing shares during periods of low price levels. Fund information INVESTMENT MANAGER Putnam Investment Management, Inc. One Post Office Square Boston, MA 02109 MARKETING SERVICES Putnam Mutual Funds Corp. One Post Office Square Boston, MA 02109 CUSTODIAN Putnam Fiduciary Trust Company LEGAL COUNSEL Ropes & Gray TRUSTEES George Putnam, Chairman William F. Pounds, Vice Chairman Jameson Adkins Baxter Hans H. Estin John A. Hill Elizabeth T. Kennan Lawrence J. Lasser Robert E. Patterson Donald S. Perkins George Putnam, III Eli Shapiro A.J.C. Smith W. Nicholas Thorndike OFFICERS George Putnam President Charles E. Porter Executive Vice President Patricia C. Flaherty Senior Vice President Lawrence J. Lasser Vice President Gordon H. Silver Vice President Gary N. Coburn Vice President James Erickson Vice President William F. McGue Vice President Blake E. Anderson Vice President Lindsey M. Callen Vice President and Fund Manager William N. Shiebler Vice President John R. Verani Vice President Paul M. O'Neil Vice President John D. Hughes Vice President and Treasurer Beverly Marcus Clerk and Assistant Treasurer This report is for the information of shareholders of Putnam New York Tax Exempt Money Market Fund. It may also be used as sales literature when preceded or accompanied by the current prospectus, which gives details of sales charges, investment objectives and operating policies of the fund. Shares of mutual funds are not deposits or obligations of, or guaranteed or endorsed by, any financial institution, are not insured by the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board or any other agency, and involve risk, including the possible loss of principal amount invested. Bulk Rate U.S. Postage PAID Putnam Investments 19009-063 PUTNAM INVESTMENTS The Putnam Funds One Post Office Square Boston, Massachusetts 02109 APPENDIX TO FORM N-30D FILINGS TO DESCRIBE DIFFERENCES BETWEEN PRINTED AND EDGAR-FILED TEXTS: (1) Bold and italic typefaces are displayed in normal type. (2) Headers (e.g., the name of the fund) are omitted. (3) Certain tabular and columnar headings and symbols are displayed differently in this filing. (4) Bullet points and similar graphic signals are omitted. (5) Page numbering is omitted. (6) Trademark symbol replaced with (TM) -----END PRIVACY-ENHANCED MESSAGE-----