-----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, nuygR/oRsHQcBgaDLAo2upRGCrd2xAE8+GcyM0vbuAExgGNWoDxkxTYgoQuhuMBx YwTafwU62oORFp3VC31t5w== 0000865177-94-000010.txt : 19940713 0000865177-94-000010.hdr.sgml : 19940713 ACCESSION NUMBER: 0000865177-94-000010 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19940712 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PUTNAM NEW OPPORTUNITIES FUND CENTRAL INDEX KEY: 0000865177 STANDARD INDUSTRIAL CLASSIFICATION: 0000 IRS NUMBER: 043091455 STATE OF INCORPORATION: MA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 033-35576 FILM NUMBER: 94538558 BUSINESS ADDRESS: STREET 1: ONE POST OFFICE SQUARE CITY: BOSTON STATE: A6 ZIP: 02109 BUSINESS PHONE: 6172921000 497 1 DEFINITIVE MATERIAL PUTNAM NEW OPPORTUNITIES FUND FORM N-1A PART B STATEMENT OF ADDITIONAL INFORMATION NOVEMBER 1, 1993, AS REVISED JULY 11 , 1994 This Statement of Additional Information is not a Prospectus and is only authorized for distribution when accompanied or preceded by the Prospectus of the Fund dated November 1, 1993, as revised from time to time. This Statement contains information which may be useful to investors but which is not included in the Prospectus. If the Fund has more than one form of current Prospectus, each reference to the Prospectus in this Statement shall include all the Fund's Prospectuses, unless otherwise noted. The Statement should be read together with the applicable Prospectus. Investors may obtain a free copy of the applicable Prospectus from Putnam Investor Services, Mailing address: P.O. Box 41203, Providence, RI 02940-1203. Part I of this Statement contains specific information about the Fund. Part II includes information about the Fund and the other Putnam funds. TABLE OF CONTENTS PART I PAGE INVESTMENT RESTRICTIONS OF THE FUND. . . . . . . . . . . . . . . . . . .I-3 FUND CHARGES AND EXPENSES. . . . . . . . . . . . . . . . . . . . . . . .I-6 INVESTMENT PERFORMANCE OF THE FUND . . . . . . . . . . . . . . . . . . .I-8 ADDITIONAL OFFICERS OF THE FUND. . . . . . . . . . . . . . . . . . . . I-13 INDEPENDENT ACCOUNTANTS AND FINANCIAL STATEMENTS . . . . . . . . . . . I-13 PART II MISCELLANEOUS INVESTMENT PRACTICES. . . . . . . . . . . . . . II-1 TAXES . . . . . . . . . . . . . . . . . . . . . . . . . . . .II-22 MANAGEMENT OF THE FUND. . . . . . . . . . . . . . . . . . . .II-27 DETERMINATION OF NET ASSET VALUE. . . . . . . . . . . . . . .II-36 HOW TO BUY SHARES . . . . . . . . . . . . . . . . . . . . . .II-38 DISTRIBUTION PLAN . . . . . . . . . . . . . . . . . . . . . .II-49 INVESTOR SERVICES . . . . . . . . . . . . . . . . . . . . . .II-49 SIGNATURE GUARANTEES. . . . . . . . . . . . . . . . . . . . .II-56 SUSPENSION OF REDEMPTIONS . . . . . . . . . . . . . . . . . .II-56 SHAREHOLDER LIABILITY . . . . . . . . . . . . . . . . . . . .II-56 STANDARD PERFORMANCE MEASURES . . . . . . . . . . . . . . . .II-57 COMPARISON OF PORTFOLIO PERFORMANCE . . . . . . . . . . . . .II-58 DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . .II-63 PUTNAM NEW OPPORTUNITIES FUND STATEMENT OF ADDITIONAL INFORMATION PART I INVESTMENT RESTRICTIONS OF THE FUND As fundamental investment policies, which may not be changed without a vote of a majority of the outstanding voting securities, the Fund may not and will not: (1) Borrow money in excess of 10% of the value (taken at the lower of cost or current value) of its total assets (not including the amount borrowed) at the time the borrowing is made, and then only from banks as a temporary measure to facilitate the meeting of redemption requests (not for leverage) which might otherwise require the untimely disposition of portfolio investments or for extraordinary or emergency purposes. Such borrowings will be repaid before any additional investments are purchased. (2) Pledge, hypothecate, mortgage or otherwise encumber its assets in excess of 15% of its total assets (taken at current value) and then only to secure borrowings permitted by restriction 1 above. (The deposit of underlying securities and other assets in escrow and collateral arrangements with respect to margin for financial futures contracts, options on such contracts and on securities indices are not deemed to be pledges or other encumbrances.) (3) Purchase securities on margin, except such short-term credits as may be necessary for the clearance of purchases and sales of securities, and except that it may make margin payments in connection with futures contracts and related options. (4) Make short sales of securities or maintain a short sale position for the account of the Fund unless at all times when a short position is open it owns an equal amount of such securities or owns securities which, without payment of any further consideration, are convertible into or exchangeable for securities of the same issue as, and at least equal in amount to, the securities sold short. (5) Underwrite securities issued by other persons except to the extent that, in connection with the disposition of its portfolio investments, it may be deemed to be an underwriter under certain federal securities laws. (6) Purchase or sell real estate, although it may purchase securities of issuers which deal in real estate, securities which are secured by interests in real estate, and securities representing interests in real estate, and it may acquire and dispose of real estate or interests in real estate acquired through the exercise of its rights as a holder of debt obligations secured by real estate or interests therein. (7) Purchase or sell commodities or commodity contracts, except that the Fund may write and purchase financial futures contracts and related options. (8) Make loans, except by purchase of debt obligations in which the Fund may invest consistent with its investment policies, or by entering into repurchase agreements with respect to not more than 25% of its total assets (taken at current value). (9) Invest in securities of any issuer if, to the knowledge of the Fund, officers and Trustees of the Fund and officers and directors of Putnam Management who beneficially own more than 0.5% of the shares or securities of that issuer together own more than 5%. (10) Invest in securities of any issuer if, immediately after such investment, more than 5% of the total assets of the Fund (taken at current value) would be invested in the securities of such issuer; provided that this limitation does not apply to obligations issued or guaranteed as to interest and principal by the U.S. government or its agencies or instrumentalities. (11) Acquire more than 10% of the voting securities of any issuer. (12) Purchase securities (other than securities of the U.S. government, its agencies or instrumentalities) if as a result of such purchase more than 25% of the Fund's total assets would be invested in any one industry. (13) Purchase securities the disposition of which is restricted under federal securities laws , if, as a result, such investments would exceed 15% of the value of the Fund's net assets , excluding restricted securities that have been determined by the Trustees of the Fund (or the person designated by them to make such determinations) to be readily marketable . (14) Buy or sell oil, gas, or other mineral leases, rights, or royalty contracts, although it may purchase securities of issuers which deal in, represent interests in, or are secured by interests in such leases, rights, or contracts, and it may acquire or dispose of such leases, rights, or contracts acquired through the exercise of its rights as a holder of debt obligations secured thereby. (15) Make investments for the purpose of gaining control of a company's management. (16) Issue any class of securities which is senior to the Fund's shares of beneficial interest. IT IS CONTRARY TO THE FUND'S PRESENT POLICY, WHICH MAY BE CHANGED WITHOUT SHAREHOLDER APPROVAL, TO: (1) Invest in (a) securities which at the time of such investment are not readily marketable, (b) securities restricted as to resale (excluding securities determined by the Trustees of the Fund (or the person designated by the Trustees of the Fund to make such determinations) to be readily marketable), and (c) repurchase agreements maturing in more than seven days, if, as a result, more than 15% of the Fund's net assets (taken at current value) would be invested in the aggregate in securities described in (a), (b) and (c) above. (2) Invest in warrants (other than warrants acquired by the Fund as a part of a unit or attached to securities at the time of purchase) if, as a result, such investments (valued at the lower of cost or market) would exceed 5% of the value of the Fund's net assets; provided that not more than 2% of the Fund's net assets may be invested in warrants not listed on the New York or American Stock Exchanges. (3) Invest in securities of any issuer if the party responsible for payment, together with any predecessors, has been in operation for less than three consecutive years and, as a result of the investment, the aggregate of such investments would exceed 5% of the value of the Fund's net assets; provided, however, that this restriction shall not apply to any obligation of the United States or its agencies or instrumentalities. (4) Purchase or sell real property (including limited partnership interests), except that the Fund may (a) purchase or sell readily marketable interests in real estate investment trusts or readily marketable securities of companies which invest in real estate (b) purchase or sell securities that are secured by interests in real estate or interests therein, or (c) acquire real estate through exercise of its rights as a holder of obligations secured by real estate or interests therein or sell real estate so acquired . (5) Invest in the securities of other registered open- end investment companies, except as they may be acquired as part of a merger or consolidation or acquisition of assets. In addition, the Fund has agreed that so long as shares of beneficial interest in the Fund are registered for offer and sale in the State of Texas and such undertaking is required as a condition to such registration, the Fund will not, without the prior written consent of the Texas Securities Commissioner, purchase or sell real property (including limited partnership interests), except that the Fund may purchase readily marketable interests in real estate investment trusts or readily marketable securities of companies which invest in real estate and may own real estate used principally for its own office space. Although certain of the Fund's fundamental investment restrictions permit the Fund to borrow money to a limited extent, the Fund does not currently intend to do so and did not do so last year. --------------------- All percentage limitations on investments will apply at the time of the making of an investment and shall not be considered violated unless an excess or deficiency occurs or exists immediately after and as a result of such investment. The Investment Company Act of 1940 provides that a "vote of a majority of the outstanding voting securities" of the Fund means the affirmative vote of the lesser of (1) more than 50% of the outstanding shares of the Fund, or (2) 67% or more of the shares present at a meeting if more than 50% of the outstanding shares are represented at the meeting in person or by proxy. FUND CHARGES AND EXPENSES MANAGEMENT FEES Under a Management Contract dated December 5, 1991, the Fund pays a quarterly fee to Putnam Management based on the average net assets of the Fund, as determined at the close of each business day during the quarter, at an annual rate of 0.70% of the first $500 million of average net assets, 0.60% of the next $500 million, 0.55% of the next $500 million and 0.50% of any amount over $1.5 billion. For its 1992 and 1993 fiscal years, pursuant to the Management Contract and a management contract in effect prior to December 5, 1991, under which the management fee payable to Putnam Management was paid at the rate of 0.85% of the average net assets of the Fund, the Fund incurred fees of $346,061 and $1,547,368, respectively. The Fund did not incur any management fees during its 1991 fiscal period, which reflects a complete reduction of $13,780 pursuant to an expense limitation in effect during the period. BROKERAGE COMMISSIONS During its 1991 fiscal period and 1992 and 1993 fiscal years, the Fund incurred brokerage commissions aggregating $3,872, $89,116 and $389,826, respectively, on agency transactions. In fiscal 1991, 1992 and 1993, the Fund incurred underwriting commissions aggregating $27,109, $326,329 and $2,133,551, respectively, on underwritten transactions. In fiscal 1993, Putnam Management, on behalf of the Fund, placed agency and underwritten transactions having an approximate aggregate dollar value of $116,340,222 (18.01% of the Fund's agency and underwritten transactions on which approximately $454,344 of commissions were paid) with brokers and dealers to recognize research, statistical and quotation services Putnam Management considered to be particularly useful to it and its affiliates. ADMINISTRATIVE EXPENSE REIMBURSEMENT The Fund reimbursed Putnam Management $25,104 for administrative services in fiscal 1993, including $22,711 for the compensation of certain officers of the Fund and their staff and contributions to Putnam Investments, Inc. Profit Sharing Retirement Plan for their benefit. TRUSTEE FEES Each Trustee of the Fund receives an annual fee of $1,440 and an additional fee for each Trustees' 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 incurred Trustees' fees aggregating $17,741 in fiscal 1993. OWNERSHIP OF FUND SHARES At September 30, 1993 the officers and Trustees of the Fund as a group owned less than 1% of the outstanding shares of either class of the Fund, and to the knowledge of the Fund no person owned of record or beneficially 5% or more of the shares of either class of the Fund. CLASS A SALES CHARGES, CONTINGENT DEFERRED SALES CHARGES AND 12B-1 FEES During fiscal 1992 and 1993, Putnam Mutual Funds received $1,732,242 and $3,070,990, respectively, in sales charges on sales of Class A shares of the Fund, of which it retained $268,090 and $357,774, respectively, after allowance of dealer concessions. During fiscal 1991 and 1992, Putnam Mutual Funds did not receive any contingent deferred sales charges upon redemptions of Class A shares of the Fund. During fiscal 1993, Putnam Mutual Funds received $25 in contingent deferred sales charges upon redemptions of Class A shares of the Fund. During fiscal 1991, Putnam Mutual Funds did not receive any sales charges on sales of shares of the Fund or any contingent deferred sales charges upon redemptions of shares of the Fund. During fiscal 1993, the Fund incurred $559,785 in 12b-1 fees to Putnam Mutual Funds pursuant to the Fund's Class A Distribution Plan. CLASS B CONTINGENT DEFERRED SALES CHARGES AND 12B-1 FEES During fiscal 1993, Putnam Mutual Funds received $2,008 in contingent deferred sales charges upon redemptions of Class B shares of the Fund. During fiscal 1993, the Fund incurred $22,069 in 12b-1 fees to Putnam Mutual Funds pursuant to the Fund's Class B Distribution Plan. INVESTOR SERVICING AND CUSTODY FEES AND EXPENSES During the 1993 fiscal year, the Fund incurred $575,227 in fees and out-of-pocket expenses for investor servicing and custody services provided by Putnam Fiduciary Trust Company. INVESTMENT PERFORMANCE OF THE FUND STANDARD PERFORMANCE MEASURES The Fund's average annual total return (compounded annually) for Class A shares for the one-year period ended June 30, 1993 and for the life of the Fund through that date was +37.76% and +36.46%, respectively, adjusted to reflect deduction of the maximum sales charge of 5.75%. The cumulative total return for Class B shares since the commencement of the public offering of such shares on March 1, 1993 through June 30, 1993 was +12.12%, adjusted to reflect the deduction of the maximum contingent deferred sales charge of 5.00%. See "Standard Performance Measures" in Part II of this Statement for information on how the Fund's total return is calculated. PERFORMANCE RATINGS For the 1993 fiscal year, the Fund was ranked 3 of 327 growth funds by Lipper Analytical Services, Inc. and 3 of 358 long-term growth funds by CDA/Wiesenberger's Management Results. See "Comparison of Portfolio Performance" in Part II of this Statement for information about how these rankings are determined. Past performance is no guarantee of future results. OTHER PERFORMANCE INFORMATION The tables below show total return (capital changes plus reinvestment of all distributions) on a hypothetical investment in one share of the Fund during the life of the Fund. This was a period of fluctuating security prices. The tables do not project the future performance of the Fund.
CLASS A SHARES CUMULATIVE FISCAL MAXIMUM NET ASSET DISTRIBUTIONS NET ASSET VALUE YEAR OFFERING VALUE ------------------- AT YEAR-END ENDED PRICE AT ----------------- FROM FROM WITH ALL JUNE BEGINNING BEGINNING END OF INVESTMENT CAPITAL DISTRIBUTIONS 30 OF PERIOD OF PERIOD PERIOD INCOME GAINS REINVESTED - ------------------------------------------------------------------------------------------------ 1991(1) $9.06 $8.54 $11.56 ----- $0.06 $11.63 1992 $12.27 $11.56 $14.50 ----- $0.372 $14.99 1993 $15.38 $14.50 $20.83 ----- $0.315 $21.90 ------ ----- Total distributions $ ----- $0.747 ====== ===== (1) Investment operations began August 31, 1990.
PERCENTAGE CHANGES DURING LIFE OF FUND (CLASS A SHARES) PUTNAM NEW OPPORTUNITIES FUND ------------------------------ STANDARD & FISCAL MAXIMUM OFFERING NET ASSET VALUE POOR'S 500 YEAR PRICE TO NET TO NET COMPOSITE NASDAQ CONSUMER ENDED ASSET VALUE ASSET VALUE STOCK INDEX INDUSTRIALS PRICE INDEX JUNE CUMULA- CUMULA- CUMULA- CUMULA- CUMULA- 30 ANNUAL TIVE ANNUAL TIVE ANNUAL TIVE ANNUAL TIVE ANNUAL TIVE - ------------------------------------------------------------------------------------------------------------------------ 1991(1) -- +28.41% -- +36.22% -- +19.22% -- +29.51% +3.35% +3.35% 1992 +21.40% +65.45 +28.85% +75.53 +13.38% +35.18 +14.13% +47.83 +3.09 +6.54 1993 +37.76 +141.76 +46.12 +156.48 +13.58 +53.50 +21.25 +79.24 +3.00 +9.73 (1) Investment operations began August 31, 1990. Returns for this period are not annualized.
CLASS B SHARES CUMULATIVE FISCAL NET ASSET DISTRIBUTIONS NET ASSET VALUE YEAR VALUE ---------------------- AT YEAR-END ENDED ----------------- FROM FROM WITH ALL JUNE BEGINNING END OF INVESTMENT CAPITAL DISTRIBUTIONS 30 OF PERIOD PERIOD INCOME GAINS REINVESTED - ----------------------------------------------------------------------------------------------------- 1993(1) $17.76 $20.80 $---- $---- $20.80 ----- ----- Total distributions $---- $---- ======== ====== (1) Class B shares were offered beginning March 1, 1993.
PERCENTAGE CHANGES SINCE THE COMMENCEMENT OF THE PUBLIC OFFERING OF CLASS B SHARES PUTNAM NEW OPPORTUNITIES FUND ------------------------------ STANDARD & FISCAL RETURN AT NET ASSET VALUE POOR'S 500 YEAR APPLICABLE TO NET COMPOSITE NASDAQ CONSUMER ENDED CDSC ASSET VALUE STOCK INDEX INDUSTRIALS PRICE INDEX JUNE CUMULA- CUMULA- CUMULA- CUMULA- CUMULA- 30 ANNUAL TIVE ANNUAL TIVE ANNUAL TIVE ANNUAL TIVE ANNUAL TIVE - -------------------------------------------------------------------------------------------------------------- 1993(1) -- 12.12% -- 17.12% -- 3.04% -- 4.61% -- 0.91% (1) Class B shares were offered beginning March 1, 1993. Returns for this period are not annualized.
The tables are not adjusted for any taxes payable on reinvested distributions. The total values for the Fund as of the end of each period reflect reinvestment of all distributions and all changes in net asset value. The NASDAQ Industrial Average is an unmanaged list of stocks traded in the NASDAQ National Market System. Its performance figures reflect changes of market prices but do not reflect reinvestment of cash dividends. Standard & Poor's 500 Composite Stock Price Index is an unmanaged list of common stocks frequently used as a general measure of stock market performance. Its performance figures reflect changes of market prices and reinvestment of all regular cash dividends but are not adjusted for commissions or other costs. Because the Fund is a managed portfolio investing in common stocks, the securities it owns will not match those in the indices. ADDITIONAL OFFICERS OF THE FUND In addition to the persons listed as officers of the Fund in Part II of this Statement, the following persons are also officers of the Fund. Officers of Putnam Management hold the same offices in Putnam Management's parent company, Putnam Investments, Inc. DANIEL L. MILLER, Vice President. Senior Vice President of Putnam Management. Vice President of certain of the Putnam funds. PETER CARMAN, Vice President. Senior Managing Director of Putnam Management. Prior to August 1, 1993, Mr. Carman was Chief Investment Officer, Chairman of the U.S. Equity Investment Policy Committee and a Director of Sanford C. Bernstein & Company, Inc. MATTHEW A. WEATHERBIE, Vice President. Managing Director of Putnam Management. Vice President, Putnam Fiduciary Trust Company. Vice President of certain of the Putnam funds. INDEPENDENT ACCOUNTANTS AND FINANCIAL STATEMENTS Coopers & Lybrand are the Fund's independent accountants, providing audit services, tax return review and other tax consulting services and assistance and consultation in connection with the review of various Securities and Exchange Commission filings. The Report of Independent Accountants and financial statements included in the Fund's Annual Report for the fiscal year ended June 30, 1993, filed electronically on August 27, 1993 (811-6128), are incorporated by reference into this Statement of Additional Information. The selected per share data and ratios included in the Prospectus under the heading "Financial highlights" and the financial statements incorporated by reference into the Prospectus and the Statement of Additional Information have been so included and incorporated in reliance upon the report of the independent accountants, given on their authority as experts in auditing and accounting. -----END PRIVACY-ENHANCED MESSAGE-----