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PUTNAM AMERICAN GOVERNMENT INCOME FUND
PUTNAM ARIZONA TAX EXEMPT INCOME FUND
PUTNAM ASSET ALLOCATION FUNDS
PUTNAM CALIFORNIA INVESTMENT GRADE MUNICIPAL TRUST
PUTNAM CALIFORNIA TAX EXEMPT INCOME FUND
PUTNAM CAPITAL APPRECIATION FUND
PUTNAM CLASSIC EQUITY FUND
PUTNAM CONVERTIBLE INCOME-GROWTH TRUST
PUTNAM DISCOVERY GROWTH FUND
PUTNAM DIVERSIFIED INCOME TRUST
PUTNAM EQUITY INCOME FUND
PUTNAM EUROPE EQUITY FUND
THE PUTNAM FUND FOR GROWTH AND INCOME
PUTNAM FUNDS TRUST
THE GEORGE PUTNAM FUND OF BOSTON
PUTNAM GLOBAL EQUITY FUND
PUTNAM GLOBAL INCOME TRUST
PUTNAM GLOBAL NATURAL RESOURCES FUND
PUTNAM HEALTH SCIENCES TRUST
PUTNAM HIGH INCOME SECURITIES FUND
PUTNAM HIGH YIELD ADVANTAGE FUND
PUTNAM HIGH YIELD MUNICIPAL TRUST
PUTNAM HIGH YIELD TRUST
PUTNAM INCOME FUND
PUTNAM INTERNATIONAL EQUITY FUND
PUTNAM INVESTMENT FUNDS
PUTNAM INVESTMENT GRADE MUNICIPAL TRUST
PUTNAM INVESTORS FUND
PUTNAM LIMITED DURATION GOVERNMENT INCOME FUND
PUTNAM MANAGED MUNICIPAL INCOME TRUST
PUTNAM MASSACHUSETTS TAX EXEMPT INCOME FUND
PUTNAM MASTER INTERMEDIATE INCOME TRUST
PUTNAM MICHIGAN TAX EXEMPT INCOME FUND
PUTNAM MINNESOTA TAX EXEMPT INCOME FUND
PUTNAM MONEY MARKET FUND
PUTNAM MUNICIPAL BOND FUND
PUTNAM MUNICIPAL OPPORTUNITIES TRUST
PUTNAM NEW JERSEY TAX EXEMPT INCOME FUND
PUTNAM NEW OPPORTUNITIES FUND
PUTNAM NEW YORK INVESTMENT GRADE MUNICIPAL TRUST
PUTNAM NEW YORK TAX EXEMPT INCOME FUND
PUTNAM OHIO TAX EXEMPT INCOME FUND
PUTNAM OTC & EMERGING GROWTH FUND
PUTNAM PENNSYLVANIA TAX EXEMPT INCOME FUND
PUTNAM PREMIER INCOME TRUST
PUTNAM RETIREMENTREADY® FUNDS
PUTNAM TAX EXEMPT INCOME FUND
PUTNAM TAX EXEMPT MONEY MARKET FUND
PUTNAM TAX-FREE HEALTH CARE FUND
PUTNAM TAX-FREE INCOME TRUST
PUTNAM TAX SMART FUNDS TRUST
PUTNAM U.S. GOVERNMENT INCOME TRUST
PUTNAM UTILITIES GROWTH AND INCOME FUND
PUTNAM VARIABLE TRUST
PUTNAM VISTA FUND
PUTNAM VOYAGER FUND
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The proxyProxy statement
March 9, 2007
A Message from the Chairman of the Putnam California Investment Grade Municipal TrustFunds
Dear Fellow Shareholder:
I am writing to ask you, as a shareholder of your Putnam High Yield Municipal TrustPutnam Municipal Bond FundPutnam Municipal Opportunities TrustPutnam New York Investment Grade Municipal Trust
This proxy statement can help you decide how you wantfund, to vote on important issues relatingthe sale of Putnam Investments to Great-West Lifeco Inc., a subsidiary of Power Financial Corporation, by approving new management contracts. This proposal will be considered at a special meeting of shareholders called for May 15, 2007. Great-West Lifeco has agreed to acquire Putnam Investments Trust, which owns your fund’s investment adviser, Putnam fund. WhenInvestment Management, LLC (“Putnam Management”).
The Putnam funds’ Board of Trustees has been actively involved in the sale process, and will continue in its role of overseeing the Putnam funds on your behalf. We are asking you complete and signto approve a new management contract with Putnam Management that will become effective when the transaction with Great-West Lifeco is completed, so that there will not be any disruption in the investment management or in the services that your proxy ballot, thefund receives. The Trustees of the Putnam funds unanimously recommend that you vote FOR the approval of a new management contract.
It is important for you, as a Putnam fund shareholder, to know that no changes to the Putnam funds, to the way Putnam manages money, or to the funds’ management teams are expected as a result of this transaction. Putnam will continue to operate as a separate company headquartered in Boston, and will retain its name. There will be no change in your fund’s fee rates or in the services that your fund receives as a result of the transaction. In addition, the funds will vote on your behalf exactly as you have indicated. If you simply sign the proxy ballot, it will be voted in accordance with the Trustees’ recommendations on page 6 and 7not bear any of the costs associated with this proxy statement.solicitation.
Please take a few moments and decide how you want to vote.vote promptly. When shareholders don’tdo not return their proxies in sufficient numbers, follow-up solicitations are required, which cost your fund money.
required. You can vote by returning your proxy ballotsballot in the envelope provided. Or you can call ourthe toll-free number or go tovisit the Internet. See your proxy ballot forWeb site address indicated on the phone number and Internet address. If you have proxy related questions, please call 1-800-225-1581 or contact your financial advisor.
Table of contents
PROXY CARD(S) ENCLOSED
If you have any questions, please contact us at 1-800-225-1581 or call your financial advisor.
A Message from the Chairman
Dear Fellow Shareholder:
I am writing to ask for your vote on important matters affecting your investment in the Putnam funds. While you are, of course, welcome to join us at your fund’s meeting, most shareholders cast their vote by filling out and signing the enclosed proxy cards by calling or by voting via the Internet. We are asking for your voteon the following matters:
* Fixing the number of Trustees at 11 and electing your fund’s nominees for Trustees
Although Trustees do not manage fund portfolios, they play an important role in protecting fund shareholders, and are responsible for approving the fees paid to the fund’s investment adviser and its affiliates, reviewing overall fund expenses, selecting the fund’s auditors, monitoring conflicts of interest, overseeing the fund’s compliance with federal securities laws and voting proxies for the fund’s portfolio securities.
Your fund’s Trustees have also in the past three years been at the forefront of reform efforts affecting the mutual fund industry, including ending the practice of directing fund brokerage commissions to brokers in connection with sales of fund shares, instituting measures to discourage excessive short-term trading in open-end funds and other initiatives to reduce shareholder expenses and improve fund disclosures.
* Converting your fund to an open-end investment company(Putnam High Yield Municipal Trust only)
Your fund’s governing documents require the fund to submit for shareholder vote a proposal to convert the fund to an open-end investment company if the fund’s shares trade at a discount from net asset value over a specified time period. The Trustees recommend that shareholders vote against converting your fund. As discussed in this Proxy Statement, the Trustees believe that your fund’s status as a closed-end fund offers potential investment benefits, including the ability to remain more fully invested in longer-term, higher-yielding securities. The Trustees do not believe that recent discount levels are currently a sufficient justification for abandoning the advantages of the closed-end structure through conversion to open-end status.
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* Shareholder proposals requesting the Trustees to take the steps necessary to merge Putnam California Investment Grade Municipal Trust and Putnam New York Investment Grade Municipal Trust into their respective open-end Putnam fund counterparts or otherwise to permit shareholders of the funds to realize the net asset value of their shares.(Putnam California Investment Grade Municipal Trust and Putnam New York Investment Grade Municipal Trust only)
A shareholder of both Putnam California Investment Grade Municipal Trust and Putnam New York Investment Grade Municipal Trust has submitted shareholder proposals that call for your funds’ Trustees to take steps to merge each fund into its Putnam open-end fund counterpart or consider other means of permitting fund shareholders to receive the net asset value of their shares. It is important to note that these proposals are not proposals formally to approve mergers or other transactions; they only request the Trustees to consider further action. As discussed in the Proxy Statement, the Trustees believe that each fund’s closed-end status offers potential investment benefits, including the ability to utilize leverage through the issuance of preferred shares and the ability to remain more fully invested in longer-term, higher-yielding securities. Over most periods, both funds have outperformed their respective Putnam open-end fund counterparts at net asset value. In addition, these funds have historically offered significantly higher yields than their open-end fund counterparts. The Trustees believe that this outperformance is primarily attributable to the funds’ status as leveraged closed-end funds. The Trustees do not believe that recent discount levels are currently a sufficient justification for abandoning the advantages of the closed-end structure through merger into an open-end fund.
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I’m sure that you, like most people, lead a busy life and are tempted to put this proxy aside for another day. Please don’t. When shareholders do not vote their proxies, their fund may have to incur the expense of follow-up solicitations. All shareholders benefit from the speedy return of proxies.ballot.
Your vote is important to us. We appreciate the time and consideration I am sure you will give these important matters. If you have questions about any of these proposals,the proposal, please call a Putnam customer services representativeour proxy information line at 1-800-225-15811-866-905-2396 or contact your financial advisor.representative.
Sincerely yours,
3John A. Hill
Chairman of the Trustees
PUTNAM CALIFORNIA INVESTMENT GRADETable of contents
Notice of a Special Meeting of Shareholders | 1 | |
Trustees’ Recommendations | 4 | |
The Proposal | 4 | |
Further Information About Voting and the | ||
Special Meeting | 14 | |
Fund Information | 18 | |
Appendix A — | Number of Shares Outstanding | |
as of the Record Date | A-1 | |
Appendix B — | Form of New Management | |
Contract | B-1 | |
Appendix C — | Comparison of Terms of | |
Management Contracts | C-1 | |
Appendix D — | Management Contracts: | |
Dates and Approvals | D-1 | |
Appendix E — | Management Contracts: Fees | E-1 |
Appendix F — | Current Sub-Management Contract | |
and Sub-Advisory Contract | F-1 | |
Appendix G — | Description of Contract | |
Approval Process | G-1 | |
Appendix H — | Other Similar Funds Advised | |
by Putnam Management | H-1 | |
Appendix I — | Payments to Putnam Management | |
and its Affiliates | I-1 | |
Appendix J — | 5% Beneficial Ownership | J-1 |
Appendix K — | Security Ownership | K-1 |
PROXY CARD(S) ENCLOSED
If you have any questions, please call our proxy information line at 1-866-905-2396 or call your financial advisor.
Notice of Annuala Special Meeting of Shareholders
To the Shareholders of:
PUTNAM AMERICAN GOVERNMENT | PUTNAM INVESTMENT GRADE MUNICIPAL |
INCOME FUND | TRUST |
PUTNAM AMT-FREE INSURED MUNICIPAL | PUTNAM INVESTORS FUND |
FUND | PUTNAM LIMITED DURATION |
PUTNAM ARIZONA TAX EXEMPT INCOME | GOVERNMENT INCOME FUND |
FUND | PUTNAM MANAGED MUNICIPAL INCOME |
PUTNAM ASSET ALLOCATION: BALANCED | TRUST |
PORTFOLIO | PUTNAM MASSACHUSETTS TAX EXEMPT |
PUTNAM ASSET ALLOCATION: | INCOME FUND |
CONSERVATIVE PORTFOLIO | PUTNAM MASTER INTERMEDIATE INCOME |
PUTNAM ASSET ALLOCATION: GROWTH | TRUST |
PORTFOLIO | PUTNAM MICHIGAN TAX EXEMPT INCOME |
PUTNAM CALIFORNIA INVESTMENT | FUND |
GRADE MUNICIPAL TRUST | PUTNAM MID CAP VALUE FUND |
PUTNAM CALIFORNIA TAX EXEMPT | PUTNAM MINNESOTA TAX EXEMPT |
INCOME FUND | INCOME FUND |
PUTNAM CAPITAL APPRECIATION FUND | PUTNAM MONEY MARKET FUND |
PUTNAM CAPITAL OPPORTUNITIES FUND | PUTNAM MUNICIPAL BOND FUND |
PUTNAM CLASSIC EQUITY FUND | PUTNAM MUNICIPAL OPPORTUNITIES |
PUTNAM CONVERTIBLE INCOME- | TRUST |
GROWTH TRUST | PUTNAM NEW JERSEY TAX EXEMPT |
PUTNAM DISCOVERY GROWTH FUND | INCOME FUND |
PUTNAM DIVERSIFIED INCOME TRUST | PUTNAM NEW OPPORTUNITIES FUND |
PUTNAM EQUITY INCOME FUND | PUTNAM NEW VALUE FUND |
PUTNAM EUROPE EQUITY FUND | PUTNAM NEW YORK INVESTMENT GRADE |
PUTNAM FLOATING RATE INCOME FUND | MUNICIPAL TRUST |
THE PUTNAM FUND FOR GROWTH AND | PUTNAM NEW YORK TAX EXEMPT INCOME |
INCOME | FUND |
THE GEORGE PUTNAM FUND OF BOSTON | PUTNAM OHIO TAX EXEMPT INCOME |
PUTNAM GLOBAL EQUITY FUND | FUND |
PUTNAM GLOBAL INCOME TRUST | PUTNAM OTC & EMERGING GROWTH |
PUTNAM GLOBAL NATURAL RESOURCES | FUND |
FUND | PUTNAM PENNSYLVANIA TAX EXEMPT |
PUTNAM GROWTH OPPORTUNITIES | INCOME FUND |
FUND | PUTNAM PREMIER INCOME TRUST |
PUTNAM HEALTH SCIENCES TRUST | PUTNAM PRIME MONEY MARKET FUND |
PUTNAM HIGH INCOME SECURITIES FUND | PUTNAM RESEARCH FUND |
PUTNAM HIGH YIELD ADVANTAGE FUND | PUTNAM RETIREMENTREADY 2050 FUND |
PUTNAM HIGH YIELD MUNICIPAL TRUST | PUTNAM RETIREMENTREADY 2045 FUND |
PUTNAM HIGH YIELD TRUST | PUTNAM RETIREMENTREADY 2040 FUND |
PUTNAM INCOME FUND | PUTNAM RETIREMENTREADY 2035 FUND |
PUTNAM INCOME STRATEGIES FUND | PUTNAM RETIREMENTREADY 2030 FUND |
PUTNAM INTERNATIONAL CAPITAL | PUTNAM RETIREMENTREADY 2025 FUND |
OPPORTUNITIES FUND | PUTNAM RETIREMENTREADY 2020 FUND |
PUTNAM INTERNATIONAL EQUITY FUND | PUTNAM RETIREMENTREADY 2015 FUND |
PUTNAM INTERNATIONAL GROWTH AND | PUTNAM RETIREMENTREADY 2010 FUND |
INCOME FUND | PUTNAM RETIREMENTREADY MATURITY |
PUTNAM INTERNATIONAL NEW | FUND |
OPPORTUNITIES FUND | PUTNAM SMALL CAP GROWTH FUND |
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PUTNAM SMALL CAP VALUE FUND | PUTNAM VT GLOBAL EQUITY FUND |
PUTNAM TAX EXEMPT INCOME FUND | PUTNAM VT GROWTH AND INCOME FUND |
PUTNAM TAX EXEMPT MONEY MARKET | PUTNAM VT GROWTH OPPORTUNITIES |
FUND | FUND |
PUTNAM TAX-FREE HEALTH CARE FUND | PUTNAM VT HEALTH SCIENCES FUND |
PUTNAM TAX-FREE HIGH YIELD FUND | PUTNAM VT HIGH YIELD FUND |
PUTNAM TAX SMART EQUITY FUND® | PUTNAM VT INCOME FUND |
PUTNAM U.S. GOVERNMENT INCOME | PUTNAM VT INTERNATIONAL EQUITY |
TRUST | FUND |
PUTNAM UTILITIES GROWTH AND | PUTNAM VT INTERNATIONAL GROWTH |
INCOME FUND | AND INCOME FUND |
PUTNAM VISTA FUND | PUTNAM VT INTERNATIONAL NEW |
PUTNAM VOYAGER FUND | OPPORTUNITIES FUND |
PUTNAM VT AMERICAN GOVERNMENT | PUTNAM VT INVESTORS FUND |
INCOME FUND | PUTNAM VT MID CAP VALUE FUND |
PUTNAM VT CAPITAL APPRECIATION | PUTNAM VT MONEY MARKET FUND |
FUND | PUTNAM VT NEW OPPORTUNITIES FUND |
PUTNAM VT CAPITAL OPPORTUNITIES | PUTNAM VT NEW VALUE FUND |
FUND | PUTNAM VT OTC & EMERGING GROWTH |
PUTNAM VT DISCOVERY GROWTH FUND | FUND |
PUTNAM VT DIVERSIFIED INCOME FUND | PUTNAM VT RESEARCH FUND |
PUTNAM VT EQUITY INCOME FUND | PUTNAM VT SMALL CAP VALUE FUND |
PUTNAM VT THE GEORGE PUTNAM FUND | PUTNAM VT UTILITIES GROWTH AND |
OF BOSTON | INCOME FUND |
PUTNAM VT GLOBAL ASSET ALLOCATION | PUTNAM VT VISTA FUND |
FUND | PUTNAM VT VOYAGER FUND |
* This is the formal agendanotice for your fund’s shareholder meeting. It tells you what proposalsproposal will be voted on and the time and place of the meeting, in the eventcase you wish to attend in person.
To the Shareholders of Putnam California Investment Grade Municipal Trust, Putnam High Yield Municipal Trust, Putnam Municipal Bond Fund, Putnam Municipal Opportunities Trust and Putnam New York Investment Grade Municipal Trust:
The AnnualA Special Meeting of Shareholders of your fund will be held on October 30, 2006Tuesday, May 15, 2007 at 11:00 a.m., Boston time, at the principal offices of the fund on the 8th floor of One Post Office Square, Boston, Massachusetts 02109, to consider the following:
1. Fixing the number of Trustees at 11 and electingApproving a new management contract for your fund’s nominees for Trustees. See page 8.fund.
2. Converting your fund to an open-end investment company(Putnam High Yield Municipal Trust only). See page 35.
3. Shareholder proposal requesting the Trustees to take the steps necessary to merge your fund into Putnam California Tax Exempt Income Fund, an open-end fund, or otherwise to permit shareholders to realize the net asset value of their shares(Putnam California Investment Grade Municipal Trust only). See page 44.
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4. Shareholder proposal requesting the Trustees to take the steps necessary to merge your fund into Putnam New York Tax Exempt Income Fund, an open-end fund, or otherwise to permit shareholders to realize the net asset value of their shares(Putnam New York Investment Grade Municipal Trust only). See page 60.
By Judith Cohen, Clerk, on behalf ofand by the Trustees:Trustees
John A. Hill, Chairman
Jameson A. Baxter, Vice Chairman
George Putnam, III, President
Charles B. Curtis
Myra R. Drucker
Charles E. Haldeman, Jr.
Paul L. Joskow
Elizabeth T. Kennan
Kenneth R. Leibler
Robert E. Patterson
W. Thomas Stephens
Richard B. Worley
We urge you to mark, sign, date, and mail the enclosed proxy in the postage-paid envelope provided or to record your voting instructions by telephone or via the Internet so that you will be represented at the meeting.
September 15, 2006March 9, 2007
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Proxy Statement
This document will givegives you the information you need to vote on the proposals.proposal. Much of the information is required under rules of the Securities and Exchange Commission (“SEC”); some of it is technical. If there is anything you don’t understand, please contact uscall our proxy information line at our toll-free number, 1-800-225-1581,1-866-905-2396 or call your financial advisor.representative.
* Why has a special meeting of shareholders been called?
On January 31, 2007, Marsh & McLennan Companies, Inc. (“Marsh & McLennan”), the ultimate parent company of Putnam Investment Management, LLC (“Putnam Management”), your fund’s investment adviser, entered into a Stock Purchase Agreement with Great-West Lifeco Inc. (“Lifeco”). Lifeco is a financial services holding company with operations in Canada, the United States and Europe and is a member of the Power Financial Corporation group of companies. Under the Stock Purchase Agreement, Lifeco will, through a direct or indirect wholly owned subsidiary (“Great-West”), acquire 100% of Putnam Investments Trust, which owns Putnam, LLC (Putnam Investments), the parent company of Putnam Management and the other Putnam companies.
As a result of this transaction, your fund’s management contract with Putnam Management will terminate. This is because the Investment Company Act of 1940, as amended (the “1940 Act”), which regulates investment companies such as your fund, requires management contracts to terminate automatically when there is a “change of control” of a fund’s investment adviser. The transaction with Lifeco will result in a “change of control” of Putnam Management, your fund’s investment adviser. Thus, your fund’s management contract with Putnam Management will automatically terminate when the transaction closes, and your fund’s shareholders must approve a new management contract. We are recommending that you approve a new management contract with Putnam Management so that Putnam Management can continue as your fund’s investment adviser after the transaction. This proxy statement describes Lifeco, the transaction, and the new ma nagement contract proposed for your fund.
*How will the change of control affect Putnam Management?
The change of control is not expected to have a material effect on Putnam Management. Putnam Management will operate as a stand-alone subsidiary of Lifeco and is expected to retain its brand and its existing management, investment and other service teams.
*How does the proposed new management contract differ from your fund’s current management contract?
The proposed new management contract is substantially identical to the current contract. Although there are some differences between your fund’s current management contract and the proposed new management contract, which are described in this proxy statement, there will be no change in the services that your fund will receive.
*Will your fund’s total fees for advisory and administrative services change?
No, there will be no change in your fund’s total fees for investment management and administrative services. For the two funds mentioned above that currently have separate management and administrative services contracts, both sets of services are proposed to be covered by a single management contract with a single fee that will not exceed the sum of the current investment management and administrative services fee.
*Who is asking for your vote?
The enclosed proxy is solicited by the Trustees of the Putnam California Investment Grade Municipal Trust, Putnam High Yield Municipal Trust, Putnam Municipal Bond Fund, Putnam Municipal Opportunities Trust and New York Investment Grade Municipal Trustfunds for use at the Annual Meetingspecial meeting of Shareholdersshareholders of each fund to be held on October 30, 2006,Tuesday, May 15, 2007 and, if your fund’s meeting is adjourned, at any later meetings, for the purposes stated in the Notice of Annuala Special Meeting (see page 4)previous pages). The Notice of Annuala Special Meeting, the proxy and the Proxy Statement are being mailed beginning on or about September 15, 2006.March 14, 2007.
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** How do your fund’s Trustees recommend that shareholders vote on these proposals?the proposal?
The Trustees unanimously recommend that you vote:vote FOR the proposal.
*1. FOR fixing the number of Trustees as proposed by the Board Policy and Nominating Committee and electing your fund’s nominees for Trustees.
2. AGAINST converting your fund to an open-end investment company and authorizing certain related amendments to your fund’s Agreement and Declaration of Trust(Putnam High Yield Municipal Trust only).
3. AGAINST the shareholder proposal requesting the Trustees to take the steps necessary to merge your fund into Putnam California Tax Exempt Income Fund, an open-end fund, or otherwise to permit shareholders to realize the net asset value of their shares(Putnam California Investment Grade Municipal Trust only).
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4. AGAINST the shareholder proposal requesting the Trustees to take the steps necessary to merge your fund into Putnam New York Tax Exempt Income Fund, an open-end fund, or otherwise to permit shareholders to realize the net asset value of their shares(Putnam New York Investment Grade Municipal Trust only).
* Who is eligible to vote?
Shareholders of record of each fund at the close of business on August 3, 2006Thursday, February 15, 2007 (the “Record Date”) are entitled to be present and to vote at the special meeting or any adjourned meeting.
The number of shares of each fund outstanding on the Record Date is shown inAppendix A. Each share is entitled to one vote. Unless otherwise noted, the holders of your fund’s preferredvote, with fractional shares and holders of your fund’s common shares will vote as separate classes.voting proportionately. Shares represented by your duly executed proxy will be voted in accordance with your instructions. If you sign the proxy card but don’t fill in a vote, your shares will be voted in accordance with the Trustees’ recommendations.recommendation. If any other business is brought before your fund’s special meeting, your shares will be voted at the discretion of the persons designated on the proxy card.
Shareholders of each fund vote separately with respect to eachthe proposal. The outcome of a vote affecting one fund does not affect any other fund.
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The ProposalsProposal
1. ELECTION OF TRUSTEESAPPROVING A NEW MANAGEMENTCONTRACT FOR YOUR FUND
*Who areBackground Information about the nominees for Trustees?Transaction
On January 31, 2007, Marsh & McLennan, the ultimate parent company of Putnam Management, your fund’s investment adviser, entered into a Stock Purchase Agreement with Lifeco. Under the Stock Purchase Agreement, Lifeco will, through Great-West, its direct or indirect wholly owned subsidiary, acquire 100% of Putnam Investments Trust, a holding company that, except for a minority stake owned by employees, is owned by Marsh & McLennan. Putnam Investments Trust owns Putnam, LLC (Putnam Investments), which in turn owns Putnam Management and the other Putnam companies.
After the transaction, Putnam Management will continue to be a wholly owned subsidiary of Putnam Investments. Putnam Investments will continue to be a wholly owned subsidiary of Putnam Investments Trust. Putnam Investments Trust will become a wholly owned subsidiary of Great-West, which will be a wholly owned holding company subsidiary of Lifeco. Lifeco is a Canadian financial services holding company with interests in the life insurance, health insurance, retirement, savings, and reinsurance businesses. Its businesses have operations in Canada, the United States and Europe. Power Financial Corporation (“Power Financial”), an international management and holding company of financial services businesses, owns approximately 70.6% of the voting shares of Lifeco. Power Corporation of Canada, a diversified international management and holding company, owns approximately 66.4% of the voting securities of Power Financial. The Honorable Paul Desmarais, Sr., through a g roup of private holding companies which he controls, has voting control of Power Corporation of Canada.
The address of Mr. Desmarais, Power Corporation of Canada, and Power Financial is 751 Victoria Square, Montreal, Quebec H2Y 2J3. The address of Lifeco is 100 Osborne Street North, Winnipeg, Manitoba, R3C 3A5. The address of Great-West will be 8515 East Orchard Road, Greenwood Village, Colorado 80111.
The funds have been informed that Lifeco’s strategic purpose for acquiring Putnam Investments is to establish a strong presence in the United States asset management business. Lifeco values Putnam
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Investments’ focus on the advice segment of the U.S. market, its significant investment management capabilities and diversified range of investment products, its high quality wholesaling organization with strong relationships with financial advisers, its distribution capabilities in Japan and Europe, and its experienced management team. Lifeco has said that it intends to operate Putnam Investments as a separate business unit, retaining Putnam Investments’ and Putnam Management’s existing management team and other key professionals. Although Lifeco may pursue sub-advisory and other synergistic opportunities for Putnam Investments within the Power Financial group of companies, it does not anticipate significant integration issues or other disruption, in light of its intent to continue to operate Putnam Investments, Putnam Management and the other Putnam companies on a stand-alone basis and its experience in operating other companies that it has acquired as s tand-alone businesses. Lifeco has advised the funds that it has no current plans to make any changes to the operations of the funds. In particular, it has advised that it has no current plans to make changes with respect to existing management fees, expense limitations, distribution arrangements, or quality of services provided to shareholders. In addition, Lifeco has advised that it intends to retain the Putnam brand and to support Putnam Investments’ current business strategy and Putnam Management’s investment management philosophy so as to minimize disruption and change for fund shareholders and the Putnam organization. Lifeco does not plan to consolidate any Putnam fund with any other company in the Power Financial group of companies. Putnam Management has been advised that, following the transaction, it is contemplated that its organizational form will be converted from a Delaware limited liability company to a Delaware limited partnership. The General Partner will be Putnam Investments LP. Th is will not have any effect on Putnam Management’s operations or the services provided to your fund.
Although the transaction is not expected to result in significant change in the operations of Putnam Management or its management of the funds, as a result of this transaction, which is expected to close in the middle of 2007, your fund’s management contract with Putnam Management will terminate. This is because the 1940 Act, which regulates investment companies such as your fund, requires management contracts to terminate automatically when there is a “change of control” of the investment adviser. The transaction with Lifeco will result in a “change ofcontrol” of Putnam Management, your fund’s investment adviser. Thus, your fund’s shareholders must approve a new management contract. The Trustees are recommending that you approve a new management contract with Putnam Management so that Putnam Management can continue as your fund’s investment adviser.
*The Stock Purchase Agreement
Under the Stock Purchase Agreement, Lifeco will acquire 100% of the ownership interests of Putnam Investments Trust, which owns Putnam Investments, the owner of Putnam Management, your fund’s current investment adviser. These Putnam Investments Trust ownership interests are in the form of class A shares, all of which are owned by Marsh & McLennan, and class B shares and options to purchase class B shares, all of which are held by Putnam employees. The estimated total value of the transaction is approximately $3.9 billion (based on the estimated value of Putnam Investments Trust’s equity interests on September 30, 2006). The final price is subject to certain adjustments at closing.
The Stock Purchase Agreement requires Lifeco, or its permitted assignee, at the closing of the transaction, to purchase all of the issued and outstanding class A common shares of Putnam Investments Trust currently held by Marsh & McLennan. Lifeco will assign its right to purchase the class A shares of Putnam Investments Trust to Great-West. Lifeco remains fully liable for its obligations under the Stock Purchase Agreement. Also at the closing, all of the issued and outstanding class B common shares and options currently held by Putnam employees under Putnam Investments Trust’s Equity Partnership Plan will be cancelled according to the terms of the Equity Partnership Plan, and each Putnam employee will receive cash payments for these shares and options, a portion of which will be paid at the closing and the remainder of which will, subject to the satisfaction of certain conditions, be paid over a three-year period, provided generally that the employee is still em ployed by Putnam on the date of payment. These deferred payments to employees may increase or decrease based upon, among other things, the performance of the Putnam funds. The transaction structure is subject to modification by Marsh & McLennan and Lifeco before closing to improve the tax efficiency of the transaction for Lifeco and to limit the extent to which the transaction consideration is subject to withholding requirements. It is not expected that any modification would result in any significant change in
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Putnam Management’s operations or its management of the funds.
Consummation of the transaction is subject to customary terms and conditions, including, among others, Marsh & McLennan and Lifeco obtaining certain regulatory approvals and the approval of new management contracts by shareholders of a substantial number of the Putnam funds. Although there is no assurance that the transaction will be completed, if each of the terms and conditions is satisfied or waived, the parties to the transaction anticipate that the closing will take place in the middle of 2007. If the transaction is not completed, your fund’s current management contract with Putnam Management will not terminate because there will be no change of control. Putnam Management would continue to serve as your fund’s investment adviser under the current management contract or, if approved at the shareholder meeting, under the proposed new management contract described in this proxy statement, effective as of January 1, 2008 or such other date as the Trustees may establish.
*Section 15(f) of the 1940 Act
Lifeco has agreed to comply with Section 15(f) of the 1940 Act. Section 15(f) provides a non-exclusive “safe harbor” for an investment company’s adviser or any affiliated persons of the adviser to receive any amount or benefit in connection with a change of control of the investment adviser as long as two conditions are met. First, for a period of three years after the change of control, at least 75% of the directors of the investment company must not be interested persons of the adviser or the predecessor adviser. Second, there must not be any “unfair burden” imposed on the investment company as a result of the transaction or any express or implied terms, conditions or understandings relating to the transaction. Section 15(f) defines “unfair burden” to include any arrangement during the two-year period after the transaction in which the adviser or predecessor adviser, or any interested person of the adviser or predecessor adviser, rece ives or is entitled to receive any compensation, directly or indirectly, from the investment company or its security holders (other than fees forbona fideinvestment advisory or other services) or from any person in connection with the purchase or sale of securities or other property to, from or on behalf of the investment company (other thanbona fideordinary compensation as principal underwriter for the investment company). Putnam Management has advised the funds that neither it, Marsh & McLennan nor Lifeco, after reasonableinquiry, is aware of any express or implied term, condition, arrangement or understanding that would impose an “unfair burden” on the funds as a result of the transaction. Marsh & McLennan and Lifeco have agreed to pay all costs incurred by the funds in connection with this transaction, including all costs of this proxy solicitation.
*The Proposed New Management Contract; Comparison with the Funds’ Current Management Contracts
The Trustees have unanimously approved, and recommend to the shareholders of each fund that they approve, a new management contract between each fund and Putnam Management. The form of the proposed new management contract is attached atAppendix B. You should refer toAppendix Bfor the complete terms of your fund’s proposed management contract.
On being presented with the need to approve new management contracts, the Trustees decided to take the opportunity to standardize, clarify and modernize various provisions of the current contracts. Because they were implemented at different times, the funds’ current management contracts differ in some cases from fund to fund, and some contain outdated provisions. The Trustees believe that this standardization will benefit shareholders by making the administration of the funds’ management contracts more efficient. In addition, Putnam Municipal Opportunities Trust and Putnam Prime Money Market Fund, which currently have both a management contract and an administrative services contract, will each combine those two contracts into a single management contract. All of the other Putnam funds receive investment management and administrative services under their current management contracts.
Except as described below, the terms of the proposed new management contracts are substantially identical to those of the current contracts. The terms of the proposed new management contracts, and certain differences between the proposed new management contracts and the current contracts, are described generally below. A more detailed description of certain differences between the proposed and current management (and administrative services, as applicable) contracts is attached atAppendix C. The date of each fund’s current management contract, the date on which it was last approved by shareholders, and the date on which its continuance was last approved by the Board Policyof Trustees is set forth inAppendix D.
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Fees.There is no change in the rate of the fees that the funds will pay Putnam Management under the proposed new management contract, except in the case of Putnam Municipal Opportunities Trust and Nominating CommitteePutnam Prime Money Market Fund (see below). The current fee schedule for investment management services and, if applicable, administrative services, for each fund is set forth inAppendix E.The actual fees paid by some funds are subject to expense limitations to which Putnam Management has agreed. It is not anticipated that any existing expense limitation commitment will change as a result of the transaction.
Putnam Municipal Opportunities Trust and Putnam Prime Money Market Fund currently have separate investment management and administrative services contracts with Putnam Management. However, the proposed new management contract for each fund, including Putnam Municipal Opportunities Trust and Putnam Prime Money Market Fund, addresses the provision of both investment management and administrative services and includes a single fee for both of these services. There is no change in the aggregate rate that Putnam Municipal Opportunities Trust and Putnam Prime Money Market Fund will pay to Putnam Management for investment management and administrative services.
Investment Management Services.The proposed new management contract for your fund provides that Putnam Management will furnish continuously an investment program for the fund, determining what investments to purchase, hold, sell or exchange and what portion of the fund’s assets will be held uninvested, in compliance with the fund’s governing documents, investment objectives, policies and restrictions, and subject to the oversight and control of the Trustees. Putnam Management has assured the funds and the Trustees that after the transaction it will continue to provide the same level of services to each fund and that the transaction will not have an adverse impact on the scope or nature of the services that each fund receives.
Putnam Management is authorized under the proposed new management contract to place orders for the purchase and sale of portfolio investments for your fund with brokers or dealers that Putnam Management selects. Putnam Management must select brokers and dealers, and place orders, using its best efforts to obtain for the funds the most favorable price and execution available, except that Putnam Management may pay higher brokerage commissions if it determines ingood faith that the commission is reasonable in relation to the value of brokerage and research services provided by the broker or dealer (a practice commonly known as “soft dollars”). Putnam Management may make this determination in terms of either the particular transaction or Putnam Management’s overall responsibilities with respect to a fund and to other clients of Putnam Management as to which Putnam Management exercises investment discretion. Putnam Management 6;s use of soft dollars is subject to policies established by the SEC and by the Trustees from time to time.
Each of the funds’ current management contracts contains similar provisions relating to the provision of investment management services.
Delegation of Responsibilities.The proposed new management contract for your fund expressly provides that Putnam Management may, in its discretion and with the approval of the Trustees (including a majority of each fund makes recommendations concerning the nominees for Trustees of that fund. The Board Policy and Nominating Committee consists solely of Trustees who are not “interested persons” (as) and, if required, the approval of shareholders, delegate responsibilities under the contract to one or more sub-advisers or sub-administrators. The separate costs of employing any sub-adviser or sub-administrator must be borne by Putnam Management or the sub-adviser or sub-administrator, not by the fund. Putnam Management is responsible for overseeing the performance of any sub-adviser or sub-administrator and remains fully responsible to the fund under the proposed new management contract regardless of whether it delegates any responsibilities.
None of the current management contracts addresses delegation of responsibilities. Putnam Management has no plans to delegate services except as described below.
At present, Putnam Management has delegated certain responsibilities to sub-advisers, as described below under the heading “Sub-Adviser Arrangements.” The sub-management contracts governing these arrangements will terminate at the same time as the current management contracts of these funds. Pursuant to the proposed new management contract (and as otherwise permitted by law), Putnam Management will enter into equivalent sub-management contracts with these sub-advisers, effective at the time the proposed new management contracts become effective, with respect to these funds. See “Sub-Adviser Arrangements” below for a description of the sub-advisers, and seeAppendix Ffor copies of the current sub-management contracts. The new sub-management contracts will be identical to the
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current sub-management contracts except for the effective dates. Shareholders should be aware that a vote to approve your fund’s new contract will have the effect of voting for the continuation of these arrangements.
In addition, Putnam Management has delegated certain administrative, pricing and bookkeeping services to State Street Bank and Trust Company. This delegation will not be affected by the transaction.
Administrative Services.The proposed new management contracts, and all of the current management contracts with the exception of those applying to Putnam Municipal Opportunities Trust and Putnam Prime Money Market Fund, provide that Putnam Management will manage, supervise and conduct the other (i.e., non-investment) affairs and business of the fund and incidental matters. These administrative services include providing suitable office space for the fund and administrative facilities, such as bookkeeping, clerical personnel and equipment necessary for the efficient conduct of the fund’s affairs, including determination of the net asset value of the fund, but excluding shareholder accounting services.
Expenses.The proposed new management contracts require Putnam Management to bear the expenses associated with (i) furnishing all necessary investment and management facilities, including salaries of personnel, required for it to execute its duties faithfully, (ii) providing suitable office space for the fund and (iii) providing administrative services. The proposed new management contracts also provide that the fund will pay the fees of its Trustees and will reimburse Putnam Management for compensation paid to officers and persons assisting officers of the fund, and all or part of the cost of suitable office space, utilities, support services and equipment used by such officers and persons, as the Trustees may determine. Under this provision, the fund will bear the costs of the Trustees’ independent staff, which assists the Trustees in overseeing each of the funds.
The current management contracts contain similar expense and reimbursement provisions.
Term and Termination.If approved by shareholders of your fund, the proposed new management contract will become effective upon its execution and will remain in effect continuously, unless terminated under the termination provisions of the contract. The proposed new management contract provides that the management contract may be terminated at any time, without the payment of any penalty by the fund, by either Putnam Management or the fund by not less than 60 days’written notice to the other party. A fund may effect termination by vote of a majority of its Trustees or by the affirmative vote of a “majority of the outstanding shares” of the fund, as defined in the Investment Company Act1940 Act. The proposed new management contracts will also terminate automatically in the event of 1940,their “assignment.”
The proposed new management contract will, unless terminated as amended (the “1940 Act”))described above, continue until June 30, 2008 and will continue in effect from year to year thereafter so long as its continuance is approved at least annually by (i) the Trustees of yourthe fund or the shareholders by the affirmative vote of Putnam Investment Management, LLC, your fund’s investment manager (“Putnam Management”). Thosea majority of the outstanding shares of the fund and (ii) a majority of the Trustees who are not “interested persons” of yourthe fund or of Putnam Management, by vote cast in person at a meeting called for the purpose of voting on such approval.
All of the current management contracts have similar provisions for their term and termination, except that the initial terms of the contracts differ and the current management contracts require that written notice be given not more than 60 nor less than 30 days before termination.
Limitation of Liability.Under the proposed new management contract, Putnam Management is not liable to a fund or to any shareholder of the fund for any act or omission in the course of, or connected with, rendering services under the proposed management contract, unless there is willful misfeasance, bad faith or gross negligence on the part of Putnam Management or reckless disregard of its obligations and duties under the proposed management contract. Each current management contract contains substantially identical provisions.
As required under each fund’s Declaration of Trust, the proposed management contract contains a notice provision stating that the fund’s Declaration of Trust is on file with the Secretary of The Commonwealth of Massachusetts and that the proposed management contract is executed on behalf of the Trustees as Trustees of the fund and not individually. Also, the obligations arising out of the proposed management contract are limited only to the assets and property of the fund and are not binding on any of the Trustees, officers or shareholders individually. Each current management contract contains a substantially identical notice.
Amendments; Defined Terms.The proposed new management contract may only be amended in writing, and any amendments must be approved in a manner consistent with the 1940 Act, the rules and regulations under the 1940 Act and any applicable guidance or
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interpretations of the SEC or its staff. Similarly, certain terms used in the proposed management contract are used as defined in the 1940 Act, the rules and regulations under the 1940 Act and any applicable guidance or interpretation of the SEC or its staff. The current management contracts contain similar terms, except that they generally do not make reference to guidance or interpretation of the SEC or its staff. Thus, the proposed new management contracts explicitly permit the funds and Manager to operate in a manner consistent with regulatory guidance and interpretations, which may provide advantages and operational flexibility from time to time.
*Sub-Adviser Arrangements
For certain funds listed below, Putnam Management has retained an affiliate to provide sub-management services. Putnam Management has retained Putnam Investments Limited (“PIL”), a wholly owned subsidiary of The Putnam Advisory Company, LLC (“PAC,” which is itself a subsidiary of Putnam Investments) and an affiliate of Putnam Management, as the sub-adviser for a portion of certain funds’ assets as determined by Putnam Management from time to time. PIL is currently authorized to serve as the sub-adviser, to the extent determined by Putnam Management from time to time, for the following funds: Putnam Diversified Income Trust, Putnam VT Diversified Income Fund, Putnam Europe Equity Fund, Putnam Global Equity Fund, Putnam VT Global Equity Fund, Putnam Global Income Trust, Putnam Global Natural Resources Fund, Putnam High Income Securities Fund, Putnam High Yield Advantage Fund, Putnam High Yield Trust, Putnam VT High Yield Fund, Putnam International Capital Opportunities Fund, Putnam International Equity Fund, Putnam VT International Equity Fund, Putnam International Growth and Income Fund, Putnam VT International Growth and Income Fund, Putnam International New Opportunities Fund, Putnam VT International New Opportunities Fund, Putnam Master Intermediate Income Trust, Putnam Premier Income Trust, Putnam Research Fund, Putnam VT Research Fund, Putnam Utilities Growth and Income Fund, and Putnam VT Utilities Growth and Income Fund.
PIL serves as sub-adviser for those funds under a sub-management agreement between Putnam Management and PIL. Pursuant to the terms of the sub-management agreement, Putnam Management (and not the fund) pays a quarterly sub-management fee to PIL for its services at the annual rate of 0.35% of the average aggregate net asset value of the portion of a fund’sassets invested in equity securities and 0.40% of the portion of a fund’s assets invested in fixed-income securities, if any, that PIL manages from time to time except that, in the case of Putnam High Income Securities Fund, Putnam Master Intermediate Income Trust and Putnam Premier Income Trust, Putnam Management (and not the fund) pays PIL a quarterly sub-management fee for its services at the annual rate of 0.40% of the funds’ average weekly assets, if any, that PIL manages from time to time.
Under the terms of the sub-management contract, PIL, at its own expense, furnishes continuously an investment program for the portion of each fund that Putnam Management allocates to PIL from time to time and makes investment decisions on behalf of these portions of the fund, subject to Putnam Management’s supervision. Putnam Management may also, at its discretion, request PIL to provide assistance with purchasing and selling securities for the fund, including order placement with certain broker-dealers. PIL, at its expense, furnishes all necessary investment and management facilities, including salaries of personnel, required for it to execute its duties.
The sub-management contract provides that PIL is not subject to any liability to Putnam Management, the fund or any shareholder of the fund for any act or omission in the course of or connected with rendering services to the fund in the absence of PIL’s willful misfeasance, bad faith, gross negligence or reckless disregard of its obligations and duties.
The sub-management contract may be terminated with respect to a fund without penalty by vote of the Trustees or the shareholders of the fund, or by PIL or Putnam Management, are referredon 30 days’ written notice. The sub-management contract also terminates without payment of any penalty in the event of its assignment. Subject to as “Independent Trustees” throughout this Proxy Statement.
The Board Policy and Nominating Committeeapplicable law, it may be amended by a majority of the Trustees who are not “interested persons” of each fund recommendsPutnam Management or the fund. The sub-management contract provides that it will continue in effect only so long as such continuance is approved at least annually by vote of either the number of Trustees be fixed at 11or the shareholders and, that you vote for the electionin either case, by a majority of the nominees describedTrustees who are not “interested persons” of Putnam Management or the fund. In each of the foregoing cases, the vote of the shareholders is the affirmative vote of a “majority of the outstanding voting securities” as defined in the following pages. Each nominee is currently1940 Act.
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PAC has been retained as a Trustee of your fund andsub-adviser for a portion of the otherassets of Putnam funds.
International Equity Fund as determined from time to time by Putnam Management or, with respect to portions of that fund’s assets for which PIL acts as sub-adviser as described above, by PIL. PAC serves as sub-adviser under a sub-advisory agreement among Putnam Management, PIL and PAC.
Pursuant to the bylawsterms of the sub-advisory agreement, Putnam Management or, with respect to portions of Putnam International Equity Fund’s assets for which PIL acts as sub-adviser, PIL (and not the fund) pays a quarterly sub-advisory fee to PAC for its services at the annual rate of 0.10% of the average aggregate net asset value of the portion of the fund with respect to which PAC acts as sub-adviser.
Under the terms of the sub-advisory contract, PAC, at its own expense, furnishes recommendations to purchase, hold, sell or exchange investments, securities and assets for that portion of Putnam International Equity Fund that is allocated to PAC from time to time by Putnam Management or PIL. Putnam Management or PIL, as applicable, determines whether to execute each such recommendation by PAC, whose activities as sub-adviser are subject to the supervision of Putnam Management and PIL, as applicable. PAC, at its expense, furnishes all necessary investment and management facilities, including salaries of personnel, required for it to execute its duties.
The sub-advisory contract provides that PAC is not subject to any liability to Putnam Management, PIL, Putnam International Equity Fund or any shareholder of the fund for any act or omission in the course of or connected with rendering services to the fund in the absence of PAC’s willful misfeasance, bad faith, gross negligence or reckless disregard of its obligations and duties.
The sub-advisory contract may be terminated without penalty by vote of the Trustees or the shareholders of Putnam International Equity Fund, or by PAC, PIL or Putnam Management, on 30 days’ written notice. The sub-advisory contract also terminates without payment of any penalty in the event of its assignment. Subject to applicable law, it may be amended by a majority of the Trustees who are not “interested persons” of Putnam Management or the fund. The sub-advisory contract provides that it will continue in effect only so long as its continuance is approved at least annually by vote of either the Trustees or the shareholders and, in either case, by a majority of the Trustees who are not “interested persons” of Putnam Management or the fund. In each of the foregoing cases, the vote of the shareholdersis the affirmative vote of a “majority of the outstanding voting securities” as defined in the 1940 Act.
A “change of control” that constitutes an assignment terminating automatically the funds’ management contracts will also terminate automatically the sub-management contract with PIL and the sub-advisory contract with PIL and PAC. So that your fund will not lose the benefit of PIL’s or PAC’s services, Putnam Management intends to enter into a new sub-management contract with PIL and a new sub-advisory contract with PIL and PAC, each identical to the current contract except for the effective date. The Trustees have unanimously approved these new contracts. SeeAppendix Ffor copies of the current contracts.
*What did the Trustees consider in evaluating the proposal?
The Trustees met in person on October 12 and 13, 2006 to discuss the implications of a possible sale of Putnam Investments in light of a decision made by its parent company, Marsh & McLennan, to explore the possibility of a sale. At this meeting, the Trustees considered information relating to the operations, competitive position in the mutual fund industry and recent history of a number of firms that had indicated to Marsh & McLennan a preliminary interest in acquiring Putnam Investments. During the course of this meeting, the Trustees received presentations on these matters from two consultants with recognized expertise in the mutual fund industry. In addition, the Trustees reviewed information about recent significant acquisitions in the mutual fund industry and considered the possible effects of a sale transaction on Putnam Management and the 1940 Act, holdersrest of the preferred sharesPutnam organization. The Trustees received a report from the chief executive officer of your fund, votingMarsh & McLenn an and considered analyst reports relating to Marsh & McLennan and its ownership of Putnam Investments. The Trustees also received advice from their independent legal counsel regarding their responsibilities in evaluating a possible sale transaction.
The Trustees actively monitored the sale process throughout the period leading up to the public announcement of a final sale agreement on February 1, 2007. The Trustees discussed developments at telephone meetings on October 18, October 25, November 1, November 29, December 20, January 12, January 18, and February 5, and at their regular in-person meetings on November 9-10, December 14-15, January 11-12, February 8-9, and March 8-9. The Trustees who are not affiliated with Putnam Investments met separately to discuss these matters during most of these meetings.
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Mr. Haldeman, the only Trustee affiliated with Putnam Investments, participated in portions of these meetings to provide the perspective of the Putnam organization, but did not otherwise participate in the deliberations of the Trustees regarding a possible sale.
Over the course of these meetings, the Trustees discussed and developed general principles to guide their evaluation of a possible sale transaction. Following the emergence of a number of interested bidders by early November 2006, the Trustees conducted due diligence on these bidders with the assistance of their independent legal counsel. The Trustees communicated their perspectives on these bidders to Marsh & McLennan and also submitted specific requests for information to be provided by bidders. After learning in December 2006 that Marsh & McLennan was negotiating exclusively with Power Financial and Lifeco, the Trustees focused their diligence efforts on Power Financial and Lifeco.
On January 2, 2007, a committee of the Trustees, together with their independent legal counsel, met with representatives of Power Financial and Lifeco to discuss the proposal to acquire Putnam Investments and responses to the Trustees’ diligence requests. The Trustees were advised in this meeting that Power Financial and Lifeco intended to maintain Putnam Investments as a class, are entitledseparate, stand-alone organization under the Putnam brand and to elect two nomineesretain Putnam Investments’ current management team. Power Financial and Lifeco expressed their intention to maintain the quality of services that the Putnam organization currently provides to the funds and the funds’ current cost structure. At the same time, they indicated their intention, consistent with this commitment, to pursue opportunities for Trustees. The holdersimproving the profitability of the preferred sharesPutnam organization. Power Financial and Lifeco indicated interest in pursuing the common sharespossibility of your fund, voting together as a single class, are entitled to vote for the remaining 9 of the 11 nominees. Therefore, Messrs. Hill and Patterson have been nominated to be elected as Trustees by the holders of the preferred shares, while the other 9 nominees have been nominated to be elected by the holders of the preferred shares and common shares voting together as a single class.
The nominees for Trustees and their backgrounds are shown in the following pages. This information includes each nominee’s name, year of birth, principal occupation(s) during the past 5 years, and other information about the nominee’s professional background, including other directorships the nominee holds. Each Trustee oversees all ofmaking the Putnam funds and serves untilother Putnam Investments products available through cer tain of their distribution channels, but indicated that no significant operational changes were envisioned. Power Financial and Lifeco also raised the election and qualificationpossibility of his or her successor, or until he or she sooner dies, resigns or is removed. The address of allusing Putnam Investments’ distribution network to distribute certain of the products of one or more of the Power Financial or Lifeco companies. The Trustees is One Post Office Square, Boston, Massachusetts 02109.noted that these proposals may benefit Lifeco and may also enable Putnam Investments to allocate the costs of its distribution network across a greater number of products. At December 31, 2005, there were 108 Putnam funds.
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Jameson A. Baxter(Born 1943)Trustee since 1994this meeting, the Trustees reviewed with Power Financial and Vice Chairman since 2005———————————————————————————————————————Ms. Baxter isLifeco the President of Baxter Associates, Inc., a private investment firm that she founded in 1986.Ms. Baxter serves as a Director of ASHTA Chemicals, Inc., Banta Corporation (a printingrole and digital imaging firm), Ryerson Tull, Inc. (a steel servicecorporation), the Mutual Fund Directors Forum, Advocate Health Care and BoardSource, formerly the National Center for Nonprofit Boards. She is Chairman Emeritusoperation of the Board of Trustees, Mount Holyoke College, having servedemphasizing its historical independence and activism in such areas as Chairman for five yearsfees and as a board member for thirteen years. Until 2002,expenses, regulatory issues, quality of service provided by Putnam to the funds, soft dollars and proxy voting. On January 10, 2007, Ms. Baxter, was a Director of Intermatic Corporation (a manufacturer of energy control products).
Ms. Baxter has held various positions in investment banking and corporate finance, including Vice President and Principal of the Regency Group, and Vice President of and Consultant to First Boston Corporation. She is a graduate of Mount Holyoke College.
Charles B. Curtis(Born 1940)Trustee since 2001——————————————————————————————————————— ————— ——
Mr. Curtis is President and Chief Operating Officer of the Nuclear Threat Initiative (a private foundation dealing with national security issues) and serves as Senior Advisor to the United Nations Foundation.
Mr. Curtis is a member of the Council on ForeignRelations, the Trustee Advisory Council of the Applied Physics Laboratory, Johns Hopkins University and serves as a Director of Edison International and Southern California Edison. Until 2003, Mr. Curtis was a member of the Electric Power Research Institute Advisory Council and the University of Chicago Board of Governors for Argonne National Laboratory. Prior to 2002, Mr. Curtis was a Member of the Board of Directors of the Gas Technology Institute and the Board of Directors of the Environment and Natural Resources Program Steering Committee, John F. Kennedy School of Government, Harvard University. Until 2001, Mr. Curtis was a member of the Department of Defense Policy Board and Director of EG&G Technical Services, Inc. (a fossil energy research and development support company).
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From August 1997 to December 1999, Mr. Curtis was a Partner at Hogan & Hartson L.L.P., a Washington, D.C. law firm. Prior to May 1997, Mr. Curtis was Deputy Secretary and Under Secretary of the U.S. Department of Energy. He served as Chairman of the Federal Energy Regulatory Commission from 1977 to 1981Trustees and has held positionsthe Chairman of the Contract Committee, also met with a representative of Power Financial and Lifeco for further d iscussion of these matters. At a telephonic meeting on January 18, 2007, the Trustees received a presentation on the staffterms of the U.S. Treasury Department,proposed sale and unanimously expressed their support for the SEC.
Myra R. Drucker(Born 1948)Trustee since 2004———————————————————————————————————————
Ms. Drucker is ChairMr. Hill, Chairman of the Board of Trustees, met with the Chairman and Co-Chief Executive Officer and the President and Co-Chief Executive Officer of Commonfund (a not-for-profit firm specializing in asset management for educational endowmentsPower Corporation of Canada and foundations), Vice Chairthe Chairman of the Board of Trustees of Sarah Lawrence College, and a member of the Investment Committee of the Kresge Foundation (a charitable trust). She is also a director of New York Stock Exchange LLC, a wholly-owned subsidiary of the publicly-traded NYSE Group, Inc. She is an advisor to Hamilton Lane LLC and RCM Capital Management (investment management firms).
Ms. Drucker is an ex-officio member of the New York Stock Exchange (NYSE) Pension Managers Advisory Committee, having served as Chair for seven years and a member of the Executive Committee of the Committee on Investment of Employee Benefit Assets. She is Chair of the Advisory Board of Hamilton Lane Advisors (an investment management firm) and a member of the Advisory Board of RCM (an investment management firm). Until August 31, 2004, Ms. Drucker was Managing Director and a member of the Board of Directors of General Motors Asset Management and Chief Investment Officer of General Motors Trust Bank. Ms. Drucker also served as a member of the NYSE Corporate Accountability and Listing Standards Committee and the NYSE/NASD IPO Advisory Committee.
Prior to joining General Motors Asset Management in 2001, Ms. Drucker held various executive positions in the investment management industry. Ms. Drucker served as Chief Investment Officer of Xerox Corporation (a technology and service company in the document industry), where she was responsible for the investment of the company’s pension assets. Ms. Drucker was also Staff Vice President and Director of Trust Investments for International Paper (a paper, paper distribution, packaging and forest products company) and previously served as Manager of Trust Investments for Xerox
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Corporation. Ms. Drucker received a B.A. degree in Literature and Psychology from Sarah Lawrence College and pursued graduate studies in economics, statistics and portfolio theory at Temple University.
John A. Hill(Born 1942)Trustee since 1985 and Chairman since 2000———————————————————————————————————————
Mr. Hill is Vice Chairman of First ReserveCorporation, a private equity buyout firm that specializes in energy investments in the diversified worldwide energy industry.
Mr. Hill is a Director of Devon Energy Corporation,TransMontaigne Oil Company and various private companies controlled by First Reserve Corporation, as well as Chairman of TH Lee, Putnam Investment Trust (a closed-end investment company advised by an affiliate of Putnam Management). He is also a Trustee of Sarah Lawrence College. Until 2005, he was a Director of Continuum Health Partners of New York.
Prior to acquiring First Reserve Corporation in 1983, Mr. Hill held executive positions in investment banking and investment management with several firms and with the federal government, including Deputy Associate Director of the Office of Management and Budget, and Deputy Director of the Federal Energy Administration. He is active in various business associations, including the Economic Club of New York, and lectures on energy issues in the United States and Europe. Mr. Hill holds a B.A. degree in Economics from Southern Methodist University and pursued graduate studies there as a Woodrow Wilson Fellow.
Paul L. Joskow(Born 1947)Trustee since 1997———————————————————————————————————————
Dr. Joskow is the Elizabeth and James Killian Professor of Economics and Management, and Director of the Center for Energy and Environmental Policy Research at the Massachusetts Institute of Technology.
Dr. Joskow serves as a Director of National Grid plc (aUK-based holding company with interests in electric and gas transmis sion and distribution and telecommunications infrastructure) and TransCanada Corporation (an energy company focused on natural gas transmission and power services). He also serves on the Board of Overseers of the Boston Symphony Orchestra. Prior to February 2005, he served on the board of the Whitehead Institute for Biomedical
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Research (a non-profit research institution) and has been President of the Yale University Council since 1993. Prior to February 2002, he was a Director of State Farm Indemnity Company (an automobile insurance company), and prior to March 2000, he was a Director of New England Electric System (a public utility holding company).
Dr. Joskow has published five books and numerous articles on topics in industrial organization, government regulation of industry, and competition policy. He is active in industry restructuring, environmental, energy, competition and privatization policies — serving as an advisor to governments and corporations worldwide. Dr. Joskow holds a Ph.D. and M. Phil from Yale University and B.A. from Cornell University.
Elizabeth T. Kennan(Born 1938)Trustee since 1992———————————————————————————————————————Dr. Kennan is a Partner of Cambus-Kenneth Farm (thoroughbred horse and cattle breeding). She is President Emeritus of Mount Holyoke College.
Dr. Kennan served as Chairman and is now Lead Director of Northeast Utilities. She has served asDirector on a number of other boards, including Bell Atlantic, Chastain Real Estate, Shawmut Bank, Berkshire Life Insurance, Kentucky Home Life Insurance and Talbots, Inc. She is a Trustee of the National Trust for Historic Preservation, of Centre College and of Midway College in Midway, Kentucky. Until 2006, she was a member of The Trustees of Reservations. Dr. Kennan has served on the oversight committee of the Folger Shakespeare Library, as President of Five Colleges Incorporated, as a Trustee of Notre Dame University, and is active in various educational and civic associations.
As a member of the faculty of Catholic University for twelve years, until 1978, Dr. Kennan directed the post-doctoral program in Patristic and Medieval Studies, taught history and published numerous articles. Dr. Kennan holds a Ph.D. from the University of Washington in Seattle, an M.S. from St. Hilda’s College at Oxford University and an A.B. from Mount Holyoke College. She holds several honorary doctorates.
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Robert E. Patterson(Born 1945)Trustee since 1984
———————————————————————————————————————Mr. Patterson is Senior Partner of Cabot Properties, L.P. and Chairman of Cabot Properties, Inc. (a private equity firm investing in commercial real estate).
Mr. Patterson serves as Chairman Emeritus and Trustee of the Joslin Diabetes Center and as a Director ofBrandywine Trust Group, LLC. Prior to June 2003, he was a Trustee of the Sea Education Association. Prior to December 2001, he was President and Trustee of Cabot Industrial Trust (a publicly traded real estate investment trust). Prior to February 1998, he was Executive Vice President and Director of Acquisitions of Cabot Partners Limited Partnership (a registered investment adviser involved in institutional real estate investments). Prior to 1990, he served as Executive Vice President of Cabot, Cabot & Forbes Realty Advisors, Inc. (the predecessor company of Cabot Partners).
Mr. Patterson practiced law and held various positions in state government and was the founding Executive Director of the Massachusetts Industrial Finance Agency. Mr. Patterson is a graduate of Harvard College and Harvard Law School.
W. Thomas Stephens(Born 1942)Trustee since 1997———————————————————————————————————————
Mr. Stephens is Chairman and Chief Executive Officer of Boise Cascade, L.L.C. (a paper, forest products and timberland assets company).
Until 2005, Mr. Stephens was a director ofTransCanadaPipelines, Ltd. Until 2004, Mr. Stephenswas a Director of Xcel Energy Incorporated (a public utility company), Quest Communications, and Norske Canada, Inc. (a paper manufacturer). Until 2003, Mr. Stephens was a Director of Mail-Well, Inc. (a diversified printing company). He served as Chairman of Mail-Well until 2001 and as CEO of MacMillan-Bloedel, Ltd. (a forest products company) until 1999.
Prior to 1996, Mr. Stephens was Chairman and Chief Executive Officer of Johns Manville Corporation. He holds B.S. and M.S. degrees from the University of Arkansas.
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Richard B. Worley(Born 1945)Trustee since 2004———————————————————————————————————————
Mr. Worley is Managing Partner of Permit Capital LLC, an investment management firm.
Mr. Worley serves on the Executive Committee of the University of Pennsylvania Medical Center, is a Trustee of The Robert Wood Johnson Foundation (aphilanthropic organization devoted to health care issues) and is a Director of The Colonial Williamsburg Foundation (a historical preservation organization). Mr. Worley also serves on the investment committees of Mount Holyoke College and World Wildlife Fund (a wildlife conservation organization).
Prior to joining Permit Capital LLC in 2002, Mr. Worley served as Chief Strategic Officer of Morgan Stanley Investment Management. He previously served as President, Chief Executive Officer and Chief Investment Officer of Morgan Stanley Dean Witter Investment Management and as a Managing Director of Morgan Stanley, a financial services firm. Mr. Worley also was the Chairman of Miller Anderson & Sherrerd, an investment management firm. Mr. Worley holds a B.S. degree from University of Tennessee and pursued graduate studies in economics at the University of Texas.
*Interested TrusteesCharles E. Haldeman, Jr.*(Born 1948)Trustee since 2004———————————————————————————————————————
Mr. Haldeman is President and Chief Executive Officer of Power Financial on January 28, 2007 to further discuss the role of the Board of Trustees in overseeing the funds and Power Financial’s and Lifeco’s commitment to the Putnam LLC (“brand, to Putnam Investments”). He isInvestments’ management team, and to support Putnam Investments’ management team and the team’s strategy following the transaction with the aim of minimizing disruption and change for the Putnam shareholders. Following the public announcement of the transaction on February 1, 2007, the Trustees received a memberreport from Putnam Investments on the final terms of the transaction at a telephonic meeting on February 5, 2007.
At an in-person meeting on February 8-9, 2007, the Trustees received further presentations regarding the final terms of the transaction. At this meeting, the Trustees considered the approval of new management contracts for each fund proposed to become effective upon the closing of the sale, and the filing of a preliminary proxy statement. At an in-person meeting on March 8-9, 2007, the Trustees considered the approval of the final forms of the proposed new management contracts for each fund and the proxy statement. They reviewed the terms of the proposed new management contracts and the differences between the proposed new management contracts and the current management contracts (and administrative services contracts, in the case of Putnam Investments’ Executive BoardMunicipal Opportunities Trust and Putnam Prime Money Market Fund). They noted that the terms of Directorsthe proposed new management contracts were substantially identical to the current management contracts, except for certain changes develop ed at the initiative of the Trustees and Advisory Council.designed largely to address inconsistencies among various of the existing contracts, which had been developed and implemented at different times in the past. (These differences are described elsewhere in this proxy statement.)
Prior to November 2003, Mr. Haldeman served as Co-Head11
In considering the approval of the proposed new management contracts, the Trustees also considered the following matters:
(i) their belief that the transaction will not adversely affect the Putnam funds, and by addressing uncertainty regarding the ownership of Putnam Investments’ Investment Division. PriorInvestments, should enhance the ability of Putnam Management and its affiliates to joining Putnam Investments in 2002, Mr. Haldeman held executive positions in thecontinue to provide high quality investment management industry. He previously served as Chief Executive Officer of Delaware Investments and President & Chief Operating Officer of United Asset Management. Mr. Haldeman was also a partner and director of Cooke & Bieler, Inc. (an investment management firm).
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Mr. Haldeman currently serves as a Trustee of Dartmouth College and is a member of the Partners HealthCare Systems Investment Committee. He is a graduate of Dartmouth College, Harvard Law School and Harvard Business School. Mr. Haldeman is also a Chartered Financial Analyst (CFA) charterholder.
George Putnam, III*(Born 1951)Trustee since 1984 and President since 2000———————————————————————————————————————
Mr. Putnam is Chairman of New Generation Research, Inc. (a publisher of financial advisory and other research services),services to the funds;
(ii) the intention expressed by representatives of Power Financial and PresidentLifeco to retain the existing Putnam Investments’ management team and other key professionals and that Putnam Investments would be operated as a separate business unit;
(iii) Power Financial’s and Lifeco’s commitment to support the continued effort of New Generation Advisers, Inc. (a registeredPutnam Management’s current management team to rebuild Putnam’s reputation and enhance the investment advisorprocess;
(iv) that representatives of Power Financial, Lifeco and Putnam Management advised that they have no current plans to private funds). Mr.make changes with respect to existing management fees, expense limitations, distribution arrangements or quality of services provided to fund shareholders and committed to maintain the current program of fund expense limitations, at least through June 30, 2009, which ensures that all Putnam foundedfunds will have expense levels at or below competitive industry averages;
(v) the New Generationfinancial condition and reputation of Power Financial and Lifeco, their record of operating acquired companies with minimal disruption to their businesses, their high level of respect for the mutual fund governance process and the independence of the Trustees and their decisions, and their commitment to maintain the high level of cooperation and support that the Putnam organization has historically provided;
(vi) the possible benefits that the funds may receive as a result of Putnam Management joining the Power Financial group of companies, which is expected to promote stability of the Putnam organization and eliminate the previous uncertainty with respect to the future ownership of Putnam Investments;
(vii) Power Financial’s and Lifeco’s commitment to maintaining competitive compensation arrangements to allow the Putnam organization to attract and retain highly qualified personnel;
(viii) that the current senior management team at Putnam Investments has indicated its strong support of the transaction; and
(ix) the commitments of Marsh & McLennan and Lifeco to bear all expenses incurred by the Putnam funds in 1986.connection with the transaction, including all costs associated with this proxy solicitation.
Finally, in considering the proposed new management contracts, the Trustees also took into account their deliberations and conclusions in connection with their most recent annual approval of the continuance of the funds’ management contracts effective July 1, 2006, and the extensive materials that they had reviewed in connection with that approval process. Appendix Gcontains a summary description of the matters considered by the Trustees in connection with that approval.
Mr.Based upon the foregoing considerations, on March 9, 2007, the Trustees, including all of the Trustees present who are not “interested persons” of the funds or Putnam is a DirectorInvestments, unanimously approved the proposed new management contracts and determined to recommend their approval to the shareholders of The Boston Family Office, LLC (a registered investment adviser). He is a Trusteethe Putnam funds.
*Additional Information Regarding Potential Interests of St. Mark’s School and Shore Country Day School, and until 2002 wasCertain Trustees in the Transaction
Charles E. Haldeman, Jr., a Trustee of the Sea Education Association.
Mr. Putnam previously workedfunds, serves as an attorney with the law firm of Dechert LLP (formerly known as Dechert Price & Rhoads) in Philadelphia. He is a graduate of Harvard College, Harvard Business School, and Harvard Law School.
* Nominees who are or may be deemed to be “interested persons” (as defined in the 1940 Act) of the fund, Putnam Management, Putnam Retail Management Limited Partnership (“Putnam Retail Management”) or Marsh & McLennan Companies, Inc., the parent company of Putnam Investments and its affiliated companies. Messrs. Putnam, III and Haldeman are deemed “interested persons” by virtue of their positions as officers of the funds, Putnam Management or Putnam Retail Management and as shareholders of Marsh & McLennan Companies, Inc. Mr. Haldeman is the President and Chief Executive Officer of Putnam Investments. Mr. Haldeman is also a stockholder of Putnam Investments Trust as a result of various equity compensation grants made to him in recent years. On March 15, 2005, Putnam Investments Trust granted Mr. Haldeman 210,635 shares of class B common stock pursuant to the Putnam Investments Trust Equity Partnership Plan. With respect to this grant, Mr. Haldeman’s shares vest over a four-year period, with 25% of the shares vesting on each anniversary of the grant, although vesting may be accelerated under certain circumstances if Mr. Haldeman’s employment with Putnam terminates. On September 29, 2005, Mr. Haldeman participated in the Putnam Option Exchange Program, in which holders of eligible options to purchase class B common stock were permitted to elect to exchange their options for restricted shares of class B common stock with a value equal to the value of the exchanged options. Mr. Haldeman was granted 14,226 restricted shares of class B common stock in exchange for an option to purchase 99,200 shares of
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class B common stock. On March 15, 2006, Putnam Investments Trust granted Mr. Haldeman 111,693 restricted shares of class B common stock for his performance in 2005. With respect to such grant, Mr. Haldeman’s shares vest over a four-year period, with 25% of the shares vesting on each anniversary of the grant. On March 15, 2006, Mr. Haldeman received an additional grant of 314,136 restricted shares of class B common stock and an option to purchase 510,638 shares as a special grant as a result of his employment contract with Marsh & McLennan. With respect to each such grant, Mr. Haldeman’s shares vest 10%, 20%, 30% and 40% over the next four years, subject to acceleration provisions based on investment performance. Mr. Haldeman also holds other restricted shares of class B common stock from grants in years prior to 2005, and it is expected that an additional grant of such restricted shares will be made in March 2007.
As a result of his interests in the stock of Putnam Investments Trust as described above, Mr. Haldeman will benefit directly from the sale of your fund’s investment adviser to Lifeco in an estimated amount of approximately $54 million, which is the value of his holdings in Putnam Investments Trust stock and stock options. Approximately 37% of this amount will be paid at the closing of the transaction and the remainder will be paid, subject to the satisfaction of certain conditions, over a three-year period. In addition, Mr. Haldeman has agreed to amend his employment agreement with Putnam Investments, which will remain in effect following the transaction with Lifeco, among other things, to defer his right to terminate his employment as a result of the transaction and receive severance payments (equal to two times his 2006 total compensation, or approximately $26 million), and Putnam Investments Trust has agreed to pay Mr. Haldeman additional incentive compensation of $8.5 million in the future, continge nt upon the achievement of certain specified business objectives.
In addition to the interests described above, Mr. Haldeman currently owns 33,334 vested shares and 42,554 unvested shares, which will vest when the transaction with Lifeco closes, of stock and options to purchase 89,350 shares of stock of Marsh & McLennan and may benefit indirectly from the sale of your fund’s investment adviser to Lifeco to the extent of his interests in Marsh & McLennan.
George Putnam, III, is the President of your fund and each of the other Putnam funds. The balance of the nominees are not “interested persons.”
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All the nominees were elected by the shareholders of each fund other than Putnam California Investment Grade Municipal Trust on October 28, 2005 and by shareholders of Putnam California Investment Grade Municipal Trust on December 6, 2005.
The nine nominees for election as Trustees by the holders of common and preferred shares, voting as a single class, who receive the greatest number of votes from the preferred and common shareholders will be elected as Trustees of your fund. In addition, the two nominees for election as Trustees by the preferred shareholders, voting as a class, who receive the greatest number of votes from the preferred shareholders will be elected as Trustees of your fund.
Each Trustee serves until his or her successor is elected and qualified or until his or her earlier resignation, retirement at age 72, death or removal. Each of the nominees has agreed to serve as a Trustee, if elected. If any of the nominees is unavailable for election at the time of the meeting, which is not anticipated, the Trustees may vote for other nominees at their discretion, or the Trustees may fix the number of Trustees to be elected by the holders of common and preferred shares voting as a single class at fewer than 9.
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* What are the Trustees’ responsibilities?
Your fund’s Trustees are responsible for the general oversight of your fund’s affairs and for assuring that your fund is managed in the best interests of its shareholders. The Trustees regularly review your fund’s investment performance as well as the quality of other services provided to your fund and its shareholders bya Trustee. Mr. Putnam Management and its affiliates, including administration, custody, and shareholder servicing. At least annually, the Trustees review and evaluate the fees and operating expenses paid by your fund for these services and negotiate changes that they deem appropriate. In carrying out these responsibilities, the Trustees are assisted by an independent administrative staff and by your fund’s auditors, independent counsel and other experts as appropriate, selected by and responsible to the Trustees.
At least 75% of the trustees of your fund are required to not be “interested persons” (as defined in the 1940 Act) of your fund or your fund’s investment manager. These independent trustees, who are referred to in this proxy statement as “Independent Trustees,” must vote separately to approve all financial arrangements and other agreements with your fund’s investment manager and other affiliated parties. The role of independent trustees has been characterized as that of a “watchdog” charged with oversight to protect shareholders’ interests against overreaching and abuse by those who are in a position to control or influence a fund. Your fund’s Independent Trustees meet regularly as a group in executive session. Nine of the 11 nominees for election as Trustee would be Independent Trustees.
Board committees.Your fund’s Trustees have determined that the effi-cient conduct of your fund’s affairs makes it desirable to delegate responsibility for certain specific matters to committees of the board. Certain committees (the Executive Committee, Distributions Committee, and Audit and Compliance Committee) are authorized to act for the Trustees as specified in their charters. The other committees review and evaluate matters specified in their charters and make recommendations to the Trustees as they deem appropriate. Each committee may utilize the resources of your fund’s independent staff, counsel and auditors as well as other experts. The committees meet as often as necessary, either in conjunction with regular meetings of the Trustees or otherwise. The membership and chairperson of each committee are appointed by the Trustees upon recommendation of the Board Policy and Nominating Committee.
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Audit and Compliance Committee.The Audit and Compliance Committee provides oversight on matters relating to the preparation of the fund’s financial statements, compliance matters and Code of Ethics issues. This oversight is discharged by regularly meeting with management and the funds’ independent registered public accounting firms and keeping current on industry developments. Duties of this Committee also include the review and evaluation of all matters and relationships pertaining to the funds’ independent registered public accounting firms, including their independence. The members of your Committee include only Independent Trustees. Each member of the Committee is “independent” as defined in Sections 303.01(B)(2)(a) and (3) of the listing standards of the New York Stock Exchange and as defined in Section 121(A) of the listing standards of the American Stock Exchange. The Trustees have adopted a written charter for the Committee. The Audit and Compliance Committee’s charter, which is included in this Proxy Statement as Exhibit A, is also available on the fund’s web site at https://content.putnam.com/individual_investor/pdf/committee_charter.pdf. Print copiesa stockholder of the charter are available free of charge upon request by calling 1-800-225-1581. The Committee currently consists of Messrs. Patterson (Chairperson), Hill and Stephens.
Board Policy and Nominating Committee.The Board Policy and Nominating Committee reviews policy matters pertaining to the operations of the Board of Trustees and its Committees, the compensation of the Trustees and their staff and the conduct of legal affairs for the funds. The Committee also oversees the voting of proxies associated with portfolio investments of the Putnam funds, with the goal of ensuring that these proxies are voted in the best interest of the funds’ shareholders.
The Committee evaluates and recommends all candidates for election as Trustees and recommends the appointment of members and chairs of each board committee. The Committee also identifies prospective nominees for election as trustee by considering individuals that come to its attention through current Trustees, Putnam Management or shareholders. Candidates properly submitted by shareholders (as described below) will be considered and evaluated on the same basis as candidates recommended by other sources. The Committee may, but is not required to, engage a third-party professional search firm to assist it in identifying and evaluating potential nominees.
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When evaluating a potential candidate for membership on the Board of Trustees, the Committee considers the skills and characteristics that it feels would most benefit the Putnam funds at the time the evaluation is made. The Committee may take into account a wide variety of attributes in considering potential trustee candidates, including, but not limited to: (i) availability and commitment of a candidate to attend meetings, (ii) other board experience, (iii) relevant industry and related experience, (iv) educational background, (v) financial expertise, (vi) an assessment of the candidate’s ability, judgment and expertise, (vii) an assessment of the perceived needs of the Board of Trustees and its committees at that point in time and (viii) the overall composition of the Board of Trustees. In connection with this evaluation, the Committee will determine whether to interview prospective nominees, and, if warranted, one or more members of the Committee, and other Trustees and representatives of the funds, as appropriate, will interview prospective nominees in person or by telephone. Once this evaluation is completed, the Committee recommends such candidates as it determines appropriate to the Independent Trustees for nomination, and the Independent Trustees select the nominees after considering the recommendation of the Committee.
The Committee will consider nominees for trustee recommended by shareholders of a fund provided shareholders submit their recommendations by the date disclosed in the paragraph entitled “Date for receipt of shareholders’ proposals for the next annual meeting,” and provided the shareholders’ recommendations otherwise comply with applicable securities laws, including Rule 14a-8 under the Securities Exchange Act of 1934, as amended (the “1934 Act”).
The Committee consists only of Independent Trustees. The Committee currently consists of Dr. Kennan (Chairperson), Ms. Baxter and Messrs. Hill and Patterson.
Brokerage Committee.The Brokerage Committee reviews the policies and procedures of the funds regarding the execution of portfolio transactions for the funds, including policies regarding: the selection of brokers and dealers to execute portfolio transactions; the establishment of brokerage commissions rates; and the generation and use of soft dollar credits. The Committee also oversees the implementation by Putnam Management of such policies and procedures. The Committee reviews periodic reports regarding payments made, the quality of execution obtained by the funds, and the value of research obtained by Putnam Management in connection with portfolio transactions on
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behalf of the funds. The Committee currently consists of Dr. Joskow (Chairperson), Ms. Drucker and Mr. Putnam, III.
Contract Committee.The Contract Committee reviews and evaluates, at least annually, all arrangements pertaining to (i) the engagement of Putnam Management and its affiliates to provide services to the funds, (ii) the expenditure of the funds’ assets for distribution purposes pursuant to the distribution plans of the open-end funds and (iii) the engagement of other persons to provide material services to the funds, including in particular those instances where the cost of services is shared between the funds and Putnam Management and its affiliates or where Putnam Management or its affiliates have a material interest. The Committee recommends to the Trustees such changes in arrangements as it deems appropriate. After review and evaluation, the Committee recommends to the Trustees the proposed organization of new fund products and proposed structural changes to existing funds. Its oversight of the closed-end funds includes (i) investment performance, (ii) trading activity, (iii) determinations with respect to conversion of a closed-end fund to an open-end fund, and (iv) other measures in response to trading discounts, including share repurchase programs. The Committee consists only of Independent Trustees. The Committee currently consists of Ms. Baxter (Chairperson), Messrs. Curtis and Worley and Dr. Kennan.
Distributions Committee.The Distributions Committee oversees all fund distributions. The Committee makes recommendations to the Trustees of the funds regarding the amount and timing of distributions paid by the funds, and approves such matters when the Trustees are not in session. The Committee also oversees the policies and procedures pursuant to which Putnam Management prepares recommended distributions, and meets regularly with representatives of Putnam Management to review the implementation of such policies and procedures. The Committee currently consists of Mr. Putnam, III, (Chairperson), Ms. Drucker and Dr. Joskow.
Executive Committee.The functions of the Executive Committee are twofold. The first is to ensure that the funds’ business may be conducted at times when it is not feasible to convene a meeting of the Trustees or for the Trustees to act by written consent. The Committee may exercise any or all of the power and authority of the Trustees when the Trustees are not in session. The second is to establish annual and ongoing goals, objectives and priorities for the Board of Trustees and to
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ensure coordination of all efforts between the Trustees and Putnam Management and its affiliates on behalf of the shareholders of the Putnam funds. The Committee currently consists of Messrs. Hill (Chairperson), Curtis, Patterson and Putnam, III (ex officio), Dr. Joskow and Ms. Baxter.
Investment Oversight Committees.These Committees regularly meet with investment personnel of Putnam Management to review the investment performance and strategies of the funds in light of their stated investment objectives and policies. Investment Oversight Committee A currently consists of Mses. Drucker (Chairperson) and Baxter and Mr. Curtis. Investment Oversight Committee B currently consists of Drs. Joskow (Chairperson) and Kennan and Mr. Stephens. Investment Committee C currently consists of Messrs. Patterson (Chairperson) and Putnam, III. Investment Oversight Committee D currently consists of Messrs. Worley (Chairperson), Haldeman and Hill.
Investment Process Committee.The Investment Process Committee complements the work of the Investment Oversight Committees by monitoring Putnam Management’s investment philosophies, investment processes and investment personnel. The Committee reviews Putnam Management’s research capabilities; risk management processes; recruiting, training and compensation of investment personnel; performance measurement; and portfolio construction. The Committee currently consists of Ms. Drucker (Chairperson), Dr. Joskow and Mr. Putnam, III.
Marketing Committee.The Marketing Committee oversees the marketing and sale of fund shares by Putnam Retail Management. The Committee reviews (i) services provided by Putnam Retail Management under its Distributor’s Contracts with the open-end funds, (ii) sales charges imposed in connection with the sale of fund shares, (iii) expenditure of the funds’ assets for distribution and shareholder services pursuant to distribution plans of the open-end funds, (iv) financial arrangements between Putnam Retail Management and financial intermediaries related to the sale of fund shares, and (v) compliance by Putnam Retail Management with applicable federal and state laws and regulations governing the sale of fund shares. The Committee also exercises general oversight of marketing and sales communications used by Putnam Retail Management in connection with the sale of fund shares. The Committee currently consists of Messrs. Curtis (Chairperson) and Worley, Ms. Baxter and Dr. Kennan.
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Pricing Committee.The Pricing Committee oversees the implementation of your fund’s policies and procedures for achieving accurate and timely pricing of the funds’ shares, including oversight of fair value determinations of individual securities made by Putnam Management or other designated agents of your fund. The Committee oversees compliance by money market funds with Rule 2a-7 under the 1940 Act, interfund transactions pursuant to Rule 17a-7 under the 1940 Act, and the correction of occasional pricing errors. The Committee also receives reports on various matters including reports on the liquidity of portfolio securities. The Committee currently consists of Messrs. Stephens (Chairperson), Hill and Patterson.
Shareholder Communications and Relations Committee.The Shareholder Communications and Relations Committee reviews certain communications sent to fund shareholders, including shareholder reports, prospectuses, proxy statements and other materials. The Committee oversees the policies and procedures pursuant to which such shareholder communications are prepared, and the implementation by Putnam Management of such policies and procedures. The Committee reviews periodic reports regarding the costs to the funds of preparing and distributing such communications. The Committee also reviews periodic reports regarding comments and suggestions received with respect to such communications. The Committee currently consists of Mr. Putnam, III (Chairperson), Ms. Drucker and Dr. Joskow.
* How large a stake do the Trustees and nominees have in the Putnam family of funds?
The Trustees allocate their investments among the Putnam funds based on their own investment needs. The table below shows the number of shares beneficially owned by each nominee for Trustee and the value of each nominee’s holdings in each fund and in all of the Putnam funds as of June 30, 2006. As a group, the Trustees owned shares of the Putnam funds valued at approximately $87 million as of June 30, 2006.
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Putnam California Investment Grade Municipal Trust
Putnam High Yield Municipal Trust
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Putnam Municipal Bond Fund
Putnam Municipal Opportunities Trust
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Putnam New York Investment Grade Municipal Trust
At June 30, 2006, the Trustees and officers, as a group, owned on that date less than 1% of the outstanding common shares of each fund, except Putnam New York Investment Grade Municipal Trust, of which their aggregate ownership was approximately 1.39% .
None of the Trustees owns any preferred shares of any of the funds.
* What are some of the ways in which the Trustees represent shareholder interests?
Among other ways, the Trustees seek to represent shareholder interests:
* by carefully reviewing your fund’s investment performance on an individual basis with your fund’s investment team;
* by carefully reviewing the quality of the various other services provided to the funds and their shareholders by Putnam Management and its affiliates;
* by discussing with senior management of Putnam Management steps being taken to address any performance deficiencies;
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* by reviewing in depth the fees paid by each fund and by negotiating with Putnam Management to ensure that such fees remain reasonable and competitive with those of comparable funds, while at the same time providing Putnam Management sufficient resources to continue to provide high quality services in the future;
* by reviewing brokerage costs and fees, allocations among brokers, soft dollar expenditures and similar expenses of the fund;
* by monitoring potential conflicts of interest between the funds and Putnam Management and its affiliates to ensure that the funds continue to be managed in the best interests of their shareholders; and
* by monitoring potential conflicts among funds managed by Putnam to ensure that shareholders continue to realize the benefits of participation in a large and diverse family of funds.
* How can shareholders communicate with the Trustees?
The Board of Trustees provides a process for shareholders to send communications to the Trustees. Shareholders may direct communications to the Board of Trustees as a whole or to specified individual Trustees by submitting them in writing to the following address:
The Putnam FundsAttention: “Board of Trustees” or any specified Trustee(s)One Post Office SquareBoston, Massachusetts 02109
Written communications must include the shareholder’s name, be signed by the shareholder, refer to the Putnam fund(s) in which the shareholder holds shares and include the class and number of shares held by the shareholder as of a recent date.
The Office of the Trustees will respond to all correspondence sent to Trustees. Due to the volume of correspondence, all communications are not sent directly to the Trustees; the correspondence is reviewed, summarized and presented to Trustees on a periodic basis.
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* How often do the Trustees meet?
The Trustees meet each month (except August) over a two-day period to review the operations of your fund and of the other Putnam funds. A portion of these meetings is devoted to meetings of various committees of the board that focus on particular matters. Each Trustee generally attends at least two formal committee meetings during each regular meeting of the Trustees. In addition, the Trustees meet in small groups with Chief Investment Officers, Portfolio Leaders and Portfolio Members to review recent performance and the current investment climate for selected funds. These meetings ensure that each fund’s performance is reviewed in detail at least twice a year. The committees of the board, including the Executive Committee, may also meet on special occasions as the need arises. During calendar year 2005, the average Trustee participated in approximately 55 committee and board meetings.
The number of times each committee met during your fund’s last fiscal year is shown in the table below:
Putnam California Investment Grade Municipal Trust
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Putnam High Yield Municipal Trust
Putnam Municipal Bond Fund
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Putnam Municipal Opportunities Trust
Putnam New York Investment Grade Municipal Trust
* Effective January 2006, the responsibilities of the Audit and Pricing Committee were divided between two separate committees, the Audit and Compliance Committee and the Pricing Committee. The number of meetings shown represents the number of meetings held by the former combined Audit and Pricing Committee prior to the formation of the new committees and by the relevant new committee after its formation.
** Effective January 2006, the Brokerage and Custody Committee was renamed the Brokerage Committee.
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*** Effective January 2006, the responsibilities of the Communication, Service and Marketing Committee were divided between two separate committees, the Marketing Committee and the Shareholder Communications and Relations Committee. The number of meetings shown represents the number of meetings held by the former combined Communication, Service and Marketing Committee prior to the formation of the new committees and by the relevant new committee after its formation.
****The Investment Process Committee began meeting in January 2006.
Your fund does not have a policy with respect to Trustee attendance at shareholder meetings. Although your fund’s Trustees did not attend the last annual meeting of your fund, they were represented at the meeting by their staff.
* What are the Trustees paid for their services?
Each Independent Trustee of the fund receives an annual retainer fee and additional fees for each Trustees’ meeting attended, for attendance at industry seminars and for certain compliance-related services. Independent Trustees who serve on board committees receive additional fees for attendance at certain committee meetings and for special services rendered in that connection. Independent Trustees also are reimbursed for costs incurred in connection with their services, including costs of travel, seminars and educational materials. All of the current Independent Trustees of the fund are Trustees of all the Putnam funds and receive fees for their services. Mr. Putnam, III also receives the foregoing fees for his services as Trustee.
The Trustees periodically review their fees to ensure that such fees continue to be appropriate in light of their responsibilities as well as in relation to fees paid to trustees of other mutual fund complexes. The Board Policy and Nominating Committee, which consists solely of Independent Trustees of the fund, estimates that committee and Trustee meeting time, together with the appropriate preparation, requires the equivalent of at least three business days per Trustee meeting. The following table shows the year each Trustee became a Trustee of the Putnam funds and the fees paid to each Trustee by your fund for its most recent fiscal year and the fees paid to each Trustee by all of the Putnam funds during calendar year 2005:
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Putnam California Investment Grade Municipal TrustCompensation Table
Retirement | Estimated | |||
benefits | annual | Total | ||
Aggregate | accrued | benefits from | compensation | |
compensation | as part | all Putnam | from all | |
from the | of fund | funds upon | Putnam | |
Trustees/Year | fund | expenses | retirement(1) | funds(2)(3) |
Jameson A. Baxter/1994(4) | $1,405 | $418 | $110,500 | $237,250 |
Charles B. Curtis/2001 | 1,310 | 778 | 113,900 | 231,500 |
Myra R. Drucker/2004 | 1,287 | N/A | N/A | 224,250 |
Charles E. Haldeman, Jr./2004 | 0 | N/A | N/A | 0 |
John A. Hill/1985(4)(5) | 2,005 | 539 | 161,700 | 422,813 |
Ronald J. Jackson/1996(4)(6) | 17 | 451 | 107,400 | 107,333 |
Paul L. Joskow/1997(4) | 1,342 | 443 | 113,400 | 228,500 |
Elizabeth T. Kennan/1992 | 1,373 | 526 | 108,000 | 229,250 |
John H. Mullin, III/1997(4)(6) | 1,325 | 485 | 107,400 | 220,000 |
Robert E. Patterson/1984 | 1,323 | 291 | 106,500 | 222,000 |
George Putnam, III/1984(5) | 1,498 | 265 | 130,300 | 262,750 |
W. Thomas Stephens/1997(4) | 1,264 | 482 | 107,100 | 211,250 |
Richard B. Worley/2004 | 1,317 | N/A | N/A | 218,750 |
Putnam High Yield Municipal Trust Compensation Table | ||||
Jameson A. Baxter/1994(4) | $1,363 | $445 | $110,500 | $237,250 |
Charles B. Curtis/2001 | 1,261 | 840 | 113,900 | 231,500 |
Myra R. Drucker/2004 | 1,291 | N/A | N/A | 224,250 |
Charles E. Haldeman, Jr./2004 | 0 | N/A | N/A | 0 |
John A. Hill/1985(4)(5) | 2,074 | 576 | 161,700 | 422,813 |
Ronald J. Jackson/1996(4)(6) | 316 | 485 | 107,400 | 107,333 |
Paul L. Joskow/1997(4) | 1,291 | 480 | 113,400 | 228,500 |
Elizabeth T. Kennan/1992 | 1,326 | 562 | 108,000 | 229,250 |
John H. Mullin, III/1997(4)(6) | 1,274 | 515 | 107,400 | 220,000 |
Robert E. Patterson/1984 | 1,268 | 309 | 106,500 | 222,000 |
George Putnam, III/1984(5) | 1,485 | 282 | 130,300 | 262,750 |
W. Thomas Stephens/1997(4) | 1,188 | 515 | 107,100 | 211,250 |
Richard B. Worley/2004 | 1,265 | N/A | N/A | 218,750 |
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Putnam Municipal Bond Fund Compensation Table
Retirement | Estimated | |||
benefits | annual | Total | ||
Aggregate | accrued | benefits from | compensation | |
compensation | as part | all Putnam | from all | |
from the | of fund | funds upon | Putnam | |
Trustees/Year | fund | expenses | retirement(1) | funds(2)(3) |
Jameson A. Baxter/1994(4) | $1,572 | $465 | $110,500 | $237,250 |
Charles B. Curtis/2001 | 1,466 | 867 | 113,900 | 231,500 |
Myra R. Drucker/2004 | 1,440 | N/A | N/A | 224,250 |
Charles E. Haldeman, Jr./2004 | 0 | N/A | N/A | 0 |
John A. Hill/1985(4)(5) | 2,242 | 601 | 161,700 | 422,813 |
Ronald J. Jackson/1996(4)(6) | 18 | 502 | 107,400 | 107,333 |
Paul L. Joskow/1997(4) | 1,502 | 493 | 113,400 | 228,500 |
Elizabeth T. Kennan/1992 | 1,536 | 586 | 108,000 | 229,250 |
John H. Mullin, III/1997(4)(6) | 1,482 | 541 | 107,400 | 220,000 |
Robert E. Patterson/1984 | 1,481 | 324 | 106,500 | 222,000 |
George Putnam, III/1984(5) | 1,676 | 296 | 130,300 | 262,750 |
W. Thomas Stephens/1997(4) | 1,415 | 537 | 107,100 | 211,250 |
Richard B. Worley/2004 | 1,473 | N/A | N/A | 218,750 |
Putnam Municipal Opportunities Trust Compensation Table | ||||
Jameson A. Baxter/1994(4) | $1,546 | $458 | $110,500 | $237,250 |
Charles B. Curtis/2001 | 1,441 | 852 | 113,900 | 231,500 |
Myra R. Drucker/2004 | 1,416 | N/A | N/A | 224,250 |
Charles E. Haldeman, Jr./2004 | 0 | N/A | N/A | 0 |
John A. Hill/1985(4)(5) | 2,205 | 591 | 161,700 | 422,813 |
Ronald J. Jackson/1996(4)(6) | 18 | 494 | 107,400 | 107,333 |
Paul L. Joskow/1997(4) | 1,477 | 485 | 113,400 | 228,500 |
Elizabeth T. Kennan/1992 | 1,511 | 576 | 108,000 | 229,250 |
John H. Mullin, III/1997(4)(6) | 1,458 | 532 | 107,400 | 220,000 |
Robert E. Patterson/1984 | 1,456 | 319 | 106,500 | 222,000 |
George Putnam, III/1984(5) | 1,648 | 291 | 130,300 | 262,750 |
W. Thomas Stephens/1997(4) | 1,391 | 528 | 107,100 | 211,250 |
Richard B. Worley/2004 | 1,449 | N/A | N/A | 218,750 |
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Putnam New York Investment Grade Municipal TrustCompensation Table
Retirement | Estimated | |||
benefits | annual | Total | ||
Aggregate | accrued | benefits from | compensation | |
compensation | as part | all Putnam | from all | |
from the | of fund | funds upon | Putnam | |
Trustees/Year | fund | expenses | retirement(1) | funds(2)(3) |
Jameson A. Baxter/1994(4) | $1,374 | $407 | $110,500 | $237,250 |
Charles B. Curtis/2001 | 1,281 | 759 | 113,900 | 231,500 |
Myra R. Drucker/2004 | 1,259 | N/A | N/A | 224,250 |
Charles E. Haldeman, Jr./2004 | 0 | N/A | N/A | 0 |
John A. Hill/1985(4)(5) | 1,961 | 526 | 161,700 | 422,813 |
Ronald J. Jackson/1996(4)(6) | 16 | 440 | 107,400 | 107,333 |
Paul L. Joskow/1997(4) | 1,313 | 432 | 113,400 | 228,500 |
Elizabeth T. Kennan/1992 | 1,343 | 513 | 108,000 | 229,250 |
John H. Mullin, III/1997(4)(6) | 1,296 | 474 | 107,400 | 220,000 |
Robert E. Patterson/1984 | 1,294 | 284 | 106,500 | 222,000 |
George Putnam, III/1984(5) | 1,465 | 259 | 130,300 | 262,750 |
W. Thomas Stephens/1997(4) | 1,237 | 471 | 107,100 | 211,250 |
Richard B. Worley/2004 | 1,288 | N/A | N/A | 218,750 |
(1) Estimated benefits for each Trustee are based on Trustee fee rates for calendar years 2003, 2004 and 2005. For Mr. Jackson, the annual benefits equal the actual benefits he is currently receiving under the Retirement Plan for Trustees of the Putnam funds.
(2)Marsh & McLennan. As of December 31, 2005, there were 108 funds2006, he and his children own in the aggregate 12,110 shares of Marsh & McLennan. In addition, Mr. Putnam family. Forserves as a trustee of trusts holding in the aggregate 102,317 shares of Marsh & McLennan; Mr. Hill, amounts shownPutnam is a likely beneficiary of these trusts. Mr. Putnam is also include compensation for service as Chairmana director of TH Lee,a charitable organization that owns 12,000 shares of Marsh & McLennan in which Mr. Putnam Emerging Opportunities Portfolio, a closed-end fund advised by an affiliatehas no economic interest. In addition, certain other members of Mr. Putnam’s family own in the aggregate 518,846 shares of Marsh & McLennan in which Mr. Putnam Management.
(3) Includes amounts (ranging from approximately $1,500 to $15,250 per Trustee) for which thehas no current economic interest. Mr. Putnam funds were reimbursed by Putnam Management for special Board and committee meetings and additional time spent on behalf of the Putnam funds in connection with certain regulatory and investigatory matters.
(4) Certain Trustees are also owed compensation deferred pursuant to a Trustee Compensation Deferral Plan. As of the dates identified below, the total amounts of deferred compensation payable by the fund, including income earned on such amounts, to certain Trustees were:
Putnam California Investment Grade Municipal Trust(April 30, 2006) Ms. Baxter —$1,020; Ms. Drucker — $41; Mr. Hill — $4,371; Mr. Jackson — $1,947; Dr. Joskow — $1,208; Dr. Kennan — $47; Mr. Mullin — $1,196; and Mr. Stephens — $112.
Putnam High Yield Municipal Trust(March 31, 2006) Ms. Baxter — $1,261; Ms. Drucker — $24; Mr. Hill — $5,264; Mr. Jackson — $2,409; Dr. Joskow — $1,494; Dr. Kennan — $27; Mr. Mullin — $1,480; and Mr. Stephens — $139.
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Putnam Municipal Bond Fund(April 30, 2006) Ms. Baxter — $1,375; Ms. Drucker — $55; Mr. Hill — $5,891; Mr. Jackson — $2,624; Dr. Joskow — $1,629; Dr. Kennan — $63; Mr. Mullin — $1,612; and Mr. Stephens — $151.
Putnam Municipal Opportunities Trust(April 30, 2006) Ms. Baxter — $1,365; Ms. Drucker — $55; Mr. Hill — $5,848; Mr. Jackson — $2,605; Mr. Joskow — $1.617; Dr. Kennan — $62; Mr. Mullin — $1,600; and Mr. Stephens — $150.
Putnam New York Investment Grade Municipal Trust(April 30, 2006) Ms. Baxter — $1,003; Ms. Drucker — $40; Mr. Hill — $4,297; Mr. Jackson — $1,914; Dr. Joskow — $1,188; Dr. Kennan — $46; Mr. Mullin — $1,176; and Mr. Stephens — $110.
(5) Includes additional compensation to Messrs. Hill and Putnam, III, for service as Chairman of the Trustees and President of the Funds, respectively.
(6) Mr. Jackson retiredmay benefit indirectly from the Board of Trustees of the Putnam funds on June 10, 2005, and Mr. Mullin retired from the Board on June 30, 2006.
Under a Retirement Plan for Trustees of the Putnam funds (the “Plan”), each Trustee who retires with at least five years of service as a Trustee of the funds is entitled to receive an annual retirement benefit equal to one-half of the average annual attendance and retainer fees paid to such Trustee for calendar years 2003, 2004 and 2005. This retirement benefit is payable during a Trustee’s lifetime, beginning the year following retirement, for the number of years of service through December 31, 2006. A death benefit, also available under the Plan, ensures that the Trustee and his or her beneficiaries will receive benefit payments for the lesser of an aggregate period of (i) ten years or (ii) such Trustee’s total years of service.
The Plan Administrator (currently the Board Policy and Nominating Committee) may terminate or amend the Plan at any time, but no termination or amendment will result in a reduction in the amount of benefits (i) currently being paid to a Trustee at the time of such termination or amendment, or (ii) to which a current Trustee would have been entitled had he or she retired immediately prior to such termination or amendment. The Trustees have terminated the Plan with respect to any Trustee first elected to the board after 2003.
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2. APPROVAL OR DISAPPROVAL OF THE CONVERSION OF YOUR FUND FROM CLOSED-END TO OPEN-END STATUS AND CERTAIN RELATED AMENDMENTS TO YOUR FUND’S AGREEMENT AND DECLARATION OF TRUST(For Putnam High Yield Municipal Trust only)
* What is this proposal?
Shareholders will have the opportunity to vote at the meeting on the question of whether your fund should be converted from a closed-end fund to an open-end fund. If the conversion is approved, your fund’s shares would become redeemable directly from your fund at net asset value, eliminating any discount of market price to net asset value. In order to address the organizational changes necessitated by any conversion from closed-end to open-end status, approval of this proposal would also authorize the Trustees to make such amendments to your fund’s Agreement and Declaration of Trust (the “Declaration of Trust”) as they may deem necessary.
* Why is this question being submitted to shareholders?
Your fund’s Declaration of Trust requires that shareholders of your fund be given the opportunity to vote on a proposal to convert your fund from closed-end to open-end status if the fund’s common shares have traded at an average discount of more than 10% from their net asset value per share during the last twelve calendar weeks of the preceding fiscal year (measured as of the last trading day in each such week). For the twelve weeks ended March 31, 2006, your fund’s shares traded at an average discount from net asset value of –11.51%, requiring that this proposal be submitted to shareholders.
* What do the Trustees recommend?
The Trustees of your fund believe that the continued operation of your fund as a closed-end fund is in the best long-term interestssale of your fund’s shareholders. Accordingly, the Trustees of your fund unanimously recommend that shareholders vote “AGAINST” this proposal.
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* Why are the Trustees recommending a vote against a conversion?
In recommending a vote against converting your fundinvestment adviser to open-end status, the Trustees considered the following factors:
* Potential investment advantages.The Trustees believe that your fund’s closed-end status provides potential investment advantages not available to open-end fund investors. Because your fund’s shares are not redeemable, your fund is not required to maintain short-term, lower-yielding investments in anticipation of possible redemptions, and generally can be more fully invested in higher-yielding securities. As a closed-end fund, your fund does not experience the cash flows associated with sales and redemptions of open-end fund shares, which create transaction costs that are borne by long-term shareholders. Such cash flows may at times also require temporary investment in short-term, lower-yielding securities, pending investment in longer-term, higher-yielding securities.
* Advantages of leverage through preferred shares.The Trustees considered the fact that your fund has engaged in investment leverage by issuing preferred shares, a strategy that is not available to open-end funds. This form of investment leverage offers your fund opportunities for increased investment yield. If the fund were to convert to open-end status, the fund would be required to redeem its preferred shares.
* Other recent measures in response to discounts.In reviewing the trading information for your fund, the Trustees took into account the fact that its shares have consistently traded at a discount to net asset value over the past few years. They reviewed the possible causes and effects of discounts, which are discussed at more length below, and noted that discount levels for your fund have fluctuated over the years and that, for some periods, fund shares have traded at substantially lower discounts or at premiums.
Both in response to recent discounts and as part of their general oversight responsibilities, the Trustees have since 2005 reviewed various measures to increase shareholder value for each of the Putnam closed-end funds. The Trustees recently authorized a share repurchase program for all of the Putnam closed-end funds, which is discussed below. Furthermore, the Trustees initiated changes to your fund’s management contract, which went into effect in January 2006, resulting in a reduction of the effective management fee rate from 0.70% to 0.55%, measured as a percentage of
36
average assets of the fund (including assets attributable to preferred shares). The Trustees believe that these steps have the potential to enhance shareholder returns, which in turn may support increased demand for your fund’s shares.
* Possible changes in fund size and expenses.Following conversion to open-end status, redemptions by shareholders could cause your fund to shrink, in the near term, resulting in an increased expense ratio for remaining shareholders. Putnam Retail Management has advised the Trustees that your fund may experience significant net redemptions shortly following a conversion to open-end status, thereby shrinking the fund’s size and creating significant transaction costs. If shareholders approve a conversion to open-end status, the Trustees would intend to instate a redemption fee for a period of time following conversion, with the purpose of at least partly offsetting the transaction costs that may result from significant redemptions of shares. The terms of any redemption fee would be determined at a later time, but the Trustees do not expect that the fee would exceed 2% or be imposed on redemptions for a period of longer than one year following conversion.
Since open-end funds may continuously offer new shares to the public, they also have the ability to increase in size in the long term, and growth in your fund’s size following a conversion to open-end status could result in efficiencies and the ability to spread fixed costs over a larger pool of assets. In order to increase assets in the face of redemptions following a conversion, the Trustees would likely consider commencing a continuous offering of shares of your fund. In that instance, to support the marketing of fund shares, the Trustees might also propose that your fund adopt a distribution plan under Rule 12b-1 under the 1940 Act similar to the plans of other open-end Putnam funds, under which Putnam Retail Management, those funds’ principal underwriter, currently receives annual distribution fees of 0.25% of net assets, though the applicable plans permit fees of up to 0.35% ..
If, following a conversion, your fund were to experience a significant loss of assets and corresponding increase in expenses, the Trustees might alternatively consider initiating a merger of your fund into another open-end Putnam fund with a comparable investment strategy.
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* What does it mean when fund shares trade at a discount?
Since closed-end funds are not required to redeem their shares, investors in closed-end funds who wish to liquidate their investment must sell their shares in the secondary markets. To promote the availability of active secondary markets for shareholders who wish to sell their shares, your fund has listed its shares for trading on the New York Stock Exchange. Prices in these secondary markets are determined by market forces and will fluctuate over time. They will also fluctuate in relation to a fund’s net asset value. Closed-end fund shares generally trade at discounts to their net asset value but at times may trade at a premium to net asset value.
Putnam Management has advised the Trustees that discount levels for closed-end funds investing primarily in fixed-income securities — such as your fund — appear to fluctuate in relation to conditions in the broader fixed-income markets, generally increasing during periods of rising interest rates and declining during periods of falling interest rates. Accordingly, these funds may be more suitable for investors who have a longer investment horizon and who will less likely face the need to liquidate their investments under unfavorable market conditions. The existence of discounts at times may also provide attractive opportunities to investors seeking potential additional returns from reductions in discount levels between the time of their purchase and their sale.
As indicated in the table below, while your fund’s common shares have traded at a discount to their net asset value over more recent periods, the discount has fluctuated over time, and at times your fund’s shares have traded at a premium to net asset value. In order to show the range of discounts and premiums at which your fund’s shares have historically traded, the table below presents both the highest market price and the lowest market price at which your fund’s shares closed on any trading day over the course each full calendar year since inception, in each case expressed as a percentage discount from, or premium to, net asset value (NAV). Thus, the “Highest Market Price” column presents the lowest discount or, if the fund traded above NAV during the year, the highest premium achieved in a given year; conversely, the “Lowest Market Price” column presents the highest discount or, if the fund only traded above NAV during the year, the lowest premium. In addition, the “Average Discount/Premium” column presents the average daily differential between market price and net asset value over the course of each full calendar year since inception.
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Putnam High Yield Municipal Trust
Highest Market Price | Lowest Market Price | Average | |
Calendar Year | (relative to NAV) | (relative to NAV) | Discount/Premium |
2005 | -8.65% | -15.32% | -12.13% |
2004 | -8.42% | -16.29% | -12.64% |
2003 | -4.50% | -12.78% | -8.62% |
2002 | 1.01% | -8.91% | -3.06% |
2001 | 6.18% | -8.27% | -0.64% |
2000 | 4.80% | -15.23% | -5.59% |
1999 | 25.00% | -17.02% | 10.80% |
1998 | 25.95% | 8.37% | 17.45% |
1997 | 18.57% | 7.34% | 13.99% |
1996 | 11.78% | 4.05% | 7.54% |
1995 | 11.36% | -1.39% | 6.31% |
1994 | 13.02% | -4.86% | 7.14% |
1993 | 17.75% | 3.41% | 10.34% |
1992 | 14.99% | 4.73% | 10.24% |
1991 | 12.36% | -7.82% | 5.77% |
1990 | 6.09% | -9.12% | 0.18% |
* How do the Trustees monitor and address trading discounts?
The Trustees carefully monitor the trading prices of your fund’s shares, recognizing that trading prices and discounts will fluctuate over time. At times when the fund trades at a material discount for an extended period of time, the Trustees may examine possible factors contributing to the situation and consider a broad range of possible actions in an effort to reduce or eliminate the discount. Such actions that could be implemented consistent with your fund’s closed-end structure might include:
* Communications with the marketplace regarding the benefits of investing in the fund in an effort to increase investor demand for the fund’s shares;
* Repurchases by the fund of its shares at prevailing market prices; and
* Tender offers by the fund to repurchase its shares at net asset value (or at a price above market and below net asset value).
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It is possible that these actions may have a temporary effect on a fund’s trading discount, although there is little industry experience that would suggest a long-term impact. Repurchases of shares, whether in the market or in tender offers, reduce the fund’s size and may result in an increase in the fund’s expense ratio. To the extent that shares are repurchased at prices below net asset value, however, such repurchases will enhance the net asset value of the fund’s shares and the total return for the remaining shareholders. Recognizing this benefit, the Trustees have authorized share repurchases by certain Putnam closed-end funds on past occasions. More recently, in October 2005, the Trustees authorized all of the Putnam closed-end funds, including your fund, to repurchase up to 5% of their outstanding shares at market prices through October 6, 2006. In March 2006, the Trustees increased this repurchase program to permit the funds to repurchase up to 10% of their outstanding shares over the same time period. The Trustees continue to study the results of the repurchase program to determine its impact on trading discounts and on investment performance. To date, the Trustees have not authorized tender offers but may consider that alternative in the future.
In considering these actions and the current proposal, the Trustees have considered the fact that all shareholders who purchased your fund’s shares presumably made their choice from among a broad array of available investment products available in the marketplace, with an understanding of the potential advantages and disadvantages of closed-end funds. Thus, in considering whether to recommend a fundamental change in the structure of the fund and its investment characteristics, the Trustees have considered whether the closed-end structure of the fund continues to offer the investment advantages contemplated when the fund was originally offered to the marketplace.
* How has your fund performed?
The following table summarizes the annualized total return of your fund for the periods shown based on the net asset value and the market price of its shares. The table also shows the performance of your fund’s primary benchmark index and the average performance of funds in your fund’s peer group of closed-end funds as determined by Lipper Inc., an independent fund rating agency. Of course, past performance is no guarantee of future performance. Benchmark index and Lipper peer group results should be compared to your fund’s performance at net asset value.
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Total Return (Annualized) for Periods Ended June 30, 2006*
1 year | 3 years | 5 years | 10 years | |
Putnam High Yield Municipal Trust | ||||
Net Asset Value | 4.90% | 6.30% | 5.48% | 5.20% |
Market Price | 0.69 | 4.03 | 2.81 | 3.16 |
Lehman Municipal Bond Index | 0.87 | 3.24 | 5.05 | 5.79 |
Lipper High Yield Municipal Debt | ||||
(Leveraged) Funds Average | 5.53 | 7.74 | 6.50 | 5.89 |
* Returns for periods ended June 30, 2006 only partially reflect the impact of a reduction by 0.15% (of average assets) in the management fees payable by Putnam High Yield Municipal Trust that went into effect on January 1, 2006. This fee reduction had a corresponding effect of reducing the fund’s total expenses (measured as a percentage of average assets) by 0.15% .
* What are additional differences between a closed-end and open-end fund?
In addition to the differences outlined above, shareholders evaluating this proposal may wish to consider the following:
* Investment flexibility.Because they are required to maintain the ability to honor redemption requests, open-funds are prohibited by the 1940 Act from investing more than 15% of their assets in securities that are deemed illiquid. Closed-end funds are not subject to this restriction.
* Annual shareholder meetings.Your fund is currently required by the rules of the New York Stock Exchange to hold annual meetings of shareholders. Conversion of your fund to open-end status would result in termination of the fund’s listing on the New York Stock Exchange, with the result that your fund would no longer be required to hold annual meetings. The open-end Putnam funds have committed to holding shareholder meetings for the purpose of electing their Trustees at least every five years (beginning in 2004).
* Dividend reinvestment.Shareholders of your fund currently have the option of participating in the fund’s Dividend Reinvestment Plan, under which cash distributions paid by your fund are generally reinvested through the purchase of additional fund shares at market prices, which currently reflect a discount from net asset value. (At times when your fund’s shares are trading at a premium over their net asset value, such reinvestments are made at the higher of net asset value or 95% of
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market value.) Shareholders of open-end Putnam funds have the option to reinvest their distributions in additional shares at net asset value at all times. If the fund were to convert to open-end status, shareholders would no longer be able to reinvest dividends at a price below net asset value per share during times when shares are trading at a discount to net asset value.
* Exchange privileges.Shareholders of open-end funds in the Putnam family of funds currently have the privilege of exchanging their investment at net asset value and without sales charges for shares of the same class of more than 65 open-end funds in the Putnam group.Shareholders of your fund do not have that privilege.
* What changes to your fund’s Declaration of Trust and other effects would follow if shareholders vote to convert the fund to open-end status?
Conversion of your fund from a closed-end to an open-end fund would require certain changes to your fund’s Declaration of Trust and, therefore, a vote in favor of such conversion would also authorize the Trustees to amend your fund’s Declaration of Trust to reflect such changes. These changes would bring your fund’s Declaration of Trust more in line with most other Putnam open-end funds.
The Declaration of Trust would be amended to require your fund to purchase all shares offered to it for redemption at a price equal to the net asset value of the shares next determined, less any redemption charge fixed by the Trustees. In addition,Lifeco to the extent permitted by applicable law, the fund would be authorized, at its option, to redeemof his interests in shares held in a shareholder’s account at net asset value if at any time a shareholder owned shares in an amount either less than or greater than, as the case may be, an amount determined by the Trustees.Notwithstanding this provision, all shares would be redeemable at a shareholder’s option.of Marsh & McLennan.
The Declaration of Trust would also be amended to eliminate certain provisions that relate specifically to the fund’s closed-end status, such as the conversion provision that has necessitated this proposal. In addition, if shareholders were to vote to convert your fund to open-end status, the provision in your fund’s Declaration of Trust requiring that Trustees be elected annually at the annual shareholder meeting or at a special meeting in lieu thereof would be eliminated. The Trustees
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would also make certain necessary technical and non-material changes to the Declaration of Trust.
Certain legal, accounting and other costs would be incurred in connection with the conversion of your fund to open-end status. These costs are not expected to exceed an amount equal to 0.5% of your fund’s current net assets.
** What is the voting requirement for approving the conversion?proposal?
Approval of the conversion of your fund to open-end status and of the related amendments to each fund’s Declaration of Trust requires the “yes” vote of a majority of the fund’s outstanding common shares.
Although the Declaration of Trust would technically also require the “yes” vote of a majority of the fund’s outstanding preferred shares entitled to vote, if the proposal receives the threshold vote from common shareholders the Trustees will nevertheless act to redeem all of the outstanding preferred shares and to effect the conversion of your fund to open-end status.
If such conversion is approved, the conversion would become effective following compliance with all necessary regulatory requirements under federal and state law. Your fund would seek to complete this process as soon as reasonably practicable. Prior to the conversion, the common shares of your fund would continue to be listed and traded on the New York Stock Exchange.
* If the conversion is not approved, will your fund continue in its current form?
Yes. In the event that shareholders do not approve the conversion of your fund to open-end status, your fund would continue to operate as a closed-end fund. Shareholders would be given the opportunity to vote on a proposed conversion to open-end status in future years if your fund’s shares again trade at discounts sufficient to meet the requirement of the Declaration of Trust described above.
The Trustees believe that the continued operation of your fund as a closed-end fund is in the best long-term interests of your fund’s shareholders, and unanimously recommend a vote against the conversion of your fund to open-end status at this time.
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3. SHAREHOLDER PROPOSAL REQUESTING THETRUSTEES TO TAKE THE STEPS NECESSARY TO MERGE YOUR FUND INTO PUTNAM CALIFORNIA TAXEXEMPT INCOME FUND, AN OPEN-END FUND, OR OTHERWISE TO PERMIT SHAREHOLDERS TO REALIZE THE NET ASSET VALUE OF THEIR SHARES(Putnam California Investment Grade Municipal Trust Only).
* What is this proposal?
A shareholder of your fund (the “proponent”) has informed the fund that he intends to present a proposal for action at the Annual Meeting of Shareholders. The proposal submitted by the proponent and the accompanying supporting statement read as follows:
RESOLVED: The shareholders ask the Trustees to take the steps necessary to merge the Putnam California Investment Grade Municipal Trust (PCA) into the Putnam California Tax Exempt Income Fund, an open-end fund, or otherwise permit shareholders to realize net asset value (NAV) for their shares.
Supporting Statement
In March, the Trustees of the Putnam Managed High Yield Trust (PTM) did the right thing by recommending its merger into a Putnam open-end fund pursuing similar investment objectives and strategies. The Trustees of PCA, who are the same people as the PTM Trustees, should once again do the right thing by recommending the merger of PCA into the open-end California fund which pursues similar investment objectives and strategies.
The reasons for merging PCA are basically the same as those for merging PTM: high discount, small size, high expenses, poor liquidity, and performance that has lagged its closed-end peers for the last ten years.
* Like PTM before the merger announcement, PCA has persistently traded at a double digit discount from NAV. As of the date of this proposal (April 28, 2006), PCA’s discount is more than 11%. No other California muni fund is saddled with such gross under-valuation.
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* PCA and the Putnam California Tax Exempt Income Fund have similar investment objectives, the same Trustees, the same Investment Manager, and the same individuals overseeing the bond portfolios. But due to PCA’s small size, its operating expense ratio (even with a recent 0.1% fee reduction) is nearly 50% higher than that for the Class A shares of the much larger open-end fund.
* PCA is illiquid. Daily trading volume averages less than 5500 shares. Even a modest order to buy or sell can move the market.
* PCA’s performance has lagged the Lipper average for California closed-end muni funds over the past 1 year, 5 years and 10 years ending 10/31/05. Its performance has lagged the Lipper average for general leveraged muni funds over the past 1 year, 5 years and 10 years ending 3/31/06. Morningstar gives PCA a below-average two stars; the Putnam open-end California fund gets three stars.
It’s not a pretty picture.
I believe the Trustees should act in the interest of PCA shareholders as they have done for PTM shareholders, by recommending a merger that will reduce operating expenses, improve liquidity, and increase share value. Merging PCA into the Putnam California Tax Exempt Income Fund is simply the right thing to do. I call on the Trustees to put such a measure before shareholders AND to recommend that shareholders vote in favor of the merger proposal.
The proponent’s name and address and the number of shares he owns in your fund will be furnished by the Clerk of your fund upon request. At your fund’s 2005 annual meeting, shareholders defeated a substantially similar shareholder proposal, with fewer than 12% of your fund’s outstanding shares (30% of the shares voted) voting in favor of the proposal.
* What would happen if the proposal passes?
The shareholder proposal does not call for a shareholder vote to approve a merger of your fund with Putnam California Tax Exempt Income Fund at this time, but rather proposes that the shareholders ask the Trustees to take action to effect such a merger. If the proposal passes at the Annual
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Meeting of Shareholders, the Trustees would continue to exercise their fiduciary duty to act in the interests of shareholders in investigating the details and potential benefits of such a merger transaction, but would not be obligated at any future meeting to recommend that the fund be merged into Putnam California Tax Exempt Income Fund or any other fund. In order to approve a merger, the Trustees would be required by SEC rules to determine that the merger would be in the best interests of shareholders of both funds and that the merger would not dilute the interests of either fund’s shareholders.
In any event, even if the Trustees decide, following any approval of the shareholder proposal (or otherwise), to recommend such a merger, an additional proxy statement and approval by the shareholders of your fund would be required. Such a proxy statement would describe in more detail the merger terms, together with certain legal, accounting, proxy and other costs that your fund might incur in connection with a merger.
Though it primarily addresses a potential merger, the shareholder’s proposal alternatively requests that the Trustees take other steps enabling shareholders to realize the net asset value of their shares —this might entail such measures as converting the fund into an open-end fund, liquidating the fund and distributing its assets, or engaging in a tender offer to repurchase fund shares. It is important to note, however, that the only way to ensure that all shareholders realize the net asset value for their shares would be to eliminate the closed-end structure of your fund, whether it is by merger, open-ending, liquidation or otherwise. Thus, although the discussion below focuses on a merger, many of the considerations apply equally to other measures that would enable shareholders to realize the net asset value for their shares.
* What do the Trustees recommend?
The Trustees believe that the continued operation of your fund as a closed-end fund is in the best long-term interests of your fund’s shareholders. Accordingly, the Trustees of your fund unanimously recommend that shareholders vote “AGAINST” this proposal.
* Why are the Trustees recommending a vote against the proposal?
In recommending a vote against the shareholder proposal, the Trustees considered the following factors:
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* Performance.Your fund’s annualized total returns, based on net asset value (NAV), are higher than those of the open-end Putnam California Tax Exempt Income Fund for each of the most recent 3-, 5- and 10-year periods, though 1-year performance has lagged somewhat. While your fund’s returns at market price have lagged the open-end fund’s returns for most periods, the Trustees consider market-price returns to be less indicative of long-term investment opportunity than returns at NAV. More details on performance are provided below.
* Yield.Your fund’s yield has historically been higher than that of Putnam California Tax Exempt Income Fund, although currently your fund’s 30-day yield calculated in accordance with SEC guidelines is somewhat lower than that of the open-end fund. More details on yields and dividend rates are provided below.
* Potential investment advantages.The Trustees believe that your fund’s closed-end status provides potential investment advantages not available to open-end fund investors. Because your fund’s shares are not redeemable, your fund is not required to maintain short-term, lower-yielding investments in anticipation of possible redemptions, and generally can be more fully invested in higher-yielding securities. As a closed-end fund, your fund does not experience the cash flows associated with sales and redemptions of open-end fund shares, which create transaction costs that are borne by long-term shareholders. Such cash flows may at times also require temporary investment in short-term, lower-yielding securities, pending investment in longer-term, higher-yielding securities.
* Effects of leverage.The Trustees believe that your fund’s historically higher performance and yields compared to the open-end fund are, in significant part, attributable to the fund’s leveraged capital structure, which is designed to enable the common shareholders to realize higher current tax-exempt income on their shares that would be obtained without leverage. The Trustees recognize, however, that the use of leverage involves greater risk, and may increase volatility in investment returns for common shareholders. The potential advantages of using investment leverage are highly dependent on the prevailing interest rate environment; when long-term interest rates are not substantially higher than the short-term interest rates that serve as the basis for dividend payments to your fund’s preferred shareholders, the use of investment leverage may not be advantageous to common shareholders. In particular, Putnam Management has advised the Trustees that your fund’s recent underperformance relative to the open-end fund is due, at least
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in part, to market conditions that make leverage currently a less effective means of increasing returns. If your fund were to cease to be closed-end, it would have to redeem all of its outstanding preferred shares. Although as an open-end fund your fund could leverage through borrowing, it would likely incur higher costs in doing so.
*Trading discounts.In reviewing the trading information for your fund, the Trustees took into account the fact that its shares have consistently traded at a discount to net asset value over the past few years. The Trustees recognized that shareholders would be able to redeem their shares for a greater amount following a merger than is currently possible through sales on the open market. They reviewed the possible causes and effects of discounts, which are discussed at more length below, and noted that discount levels for your fund have fluctuated over the years and that, for some periods, fund shares have traded at substantially lower discounts or at premiums.
* Recent actions enhancing shareholder value.The Trustees have over the past year reviewed various measures to increase shareholder value for each of the Putnam closed-end funds. In October 2005, the Trustees authorized a share repurchase program for all of the Putnam closed-end funds, which is discussed below. Furthermore, the Trustees initiated changes to your fund’sproposed new management contract which went into effect in January 2006, resulting in a reduction of the effective management fee rate from 0.65% to 0.55%, measured as a percentage of average assets of the fund (including assets attributable to preferred shares). The Trustees believe that these recent steps have the potential to enhance shareholder returns, which in turn may support increased demand for your fund’s shares.
* What is Putnam California Tax Exempt Income Fund?
Putnam California Tax Exempt Income Fund is the open-end fund into which the shareholder proposal suggests that your fund merge. The open-end fund, which is registered with the SEC as a diversified fund, commenced operations on December 17, 1982. Like your fund, this fund seeks as high a level of current income exempt from federal income tax and California personal income tax as Putnam Management believes to be consistent with preservation of capital.
Your fund and Putnam California Tax Exempt Income Fund are managed by the same management team at Putnam Management and are also overseen by the same Board of Trustees. As described in further detail
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below, the two funds also have similar investment policies and restrictions and employ similar investment strategies. As of June 30, 2006, Putnam California Tax Exempt Income Fund had net assets of approximately $2.09 billion. As of that same date, your fund’s net assets (exclusive of the liquidation preference of your fund’s preferred shares, which is $16 million) were approximately $66 million.
Included inAppendix Aare the Financial Highlights of your fund and Putnam California Tax Exempt Income Fund from each fund’s most recent shareholder report. These financial highlights contain information about each fund’s assets, expenses, performance and distributions.
* How does the investment performance of the funds compare?
The following table summarizes the annualized total return of your fund for the periods shown based on the net asset value and the market price of its shares. The table also shows the performance of the open-end Putnam California Tax Exempt Income Fund, the performance of your fund’s primary benchmark index and the average performance of funds in its peer group of closed-end funds as determined by Lipper Inc., an independent fund rating agency. Of course, past performance is no guarantee of future returns.
Annualized Total Returns as of June 30, 2006
1 year | 3 years | 5 years | 10 years | |
Your Fund (Net Asset Value) | 0.72% | 4.76% | 5.76% | 6.08% |
Your Fund (Market Price) | (0.16) | 3.84 | 3.84 | 4.90 |
Putnam California Tax Exempt Income | ||||
Fund (Open-End) Class A Shares | ||||
(Net Asset Value) | 1.11 | 3.09 | 4.47 | 5.19 |
Lehman Municipal Bond Index | 0.87 | 3.24 | 5.05 | 5.79 |
Lipper California Municipal | ||||
Debt Funds (Closed-End) Average | 1.53 | 5.64 | 6.57 | 6.41 |
Lipper California Municipal Debt | ||||
Funds Average | 0.84 | 3.20 | 4.60 | 5.20 |
As the foregoing table makes clear, your fund’s returns at NAV for the 3, 5-and 10-year quoted periods are higher than those of the open-end fund. In addition, at NAV your fund has outperformed the Lehman Municipal Bond Index, which is the benchmark index for both funds, over those periods. Annualized total returns are calculated net of expenses, so the comparative performance figures above already adjust for the higher
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expense ratio of your fund relative the open-end fund. The Trustees were informed by Putnam Management that the outperformance at NAV for these periods is due, in part, to the fund’s leveraged capital structure (which is described in more detail below), and that the leverage taken on by your fund involves increased risk and tends to amplify fluctuations in the total return of the fund, depending on market conditions.
The table above also shows that your fund’s returns at market price exceed those of the open-end fund for the 3-year period, though they lag for the 1-, 5- and 10-year periods. Because performance at market price reflects the impact of market forces, which are inherently unpredictable, the Trustees consider performance at net asset value to be more indicative of the long-term investment opportunity offered by your fund.
Your fund’s returns, as indicated in the table, have been lower than the average for the fund’s Lipper peer group of leveraged closed-end California municipal debt funds. Putnam Management has informed the Trustees that it believes this is likely due to your fund’s relatively lesser use of leverage. In previous market conditions, when long-term interest rates were significantly higher than short-term rates, this limited the fund’s performance relative to more highly-leveraged closed-end funds. However, Putnam Management believes that this under-leverage relative to the peer group could be advantageous to your fund’s relative performance in different market conditions.
The Trustees believe that shareholders should evaluate your fund’s investment performance, both at net asset value and at market price, in light of the fund’s stated investment goal:
To seek as high a level of current income exempt from federal income tax and California personal income tax as Putnam Management believes is consistent with preservation of capital.
Putnam Management has advised the Trustees that, consistent with this goal, it manages your fund’s portfolio in a way that seeks to balance the pursuit of investment yield against the risks to principal that might result from an undue focus on yield alone. This means that your fund will not necessarily invest in the highest yielding securities available in the marketplace or engage in maximum permitted leverage if doing so would involve undue risk of loss of principal due to possible credit defaults or interest rate changes. Thus, there may be times when your fund’s portfolio will generate an investment yield that is lower than that of some competing investment products that are willing to accept
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greater risk. Since investment yields appear to be an important factor in influencing market prices, this emphasis on total return may at times contribute to discount levels that are higher than those of competing products. Over longer periods of time, however, Putnam Management believes that this approach to managing risk should produce less principal volatility and higher overall investment returns. There is, of course, no guarantee that this will be the case.
* How do the two funds’ dividend rates and yields compare?
As of June 30, 2006, your fund’s yield, calculated as your fund’s established dividend rate as a percentage of the market price of its common shares, was 4.92% . When calculated as a percentage of net asset value, your fund’s yield on that same date was 4.35% . By contrast, as of June 30, 2006, the dividend rate for class A shares of Putnam California Tax Exempt Income Fund was 4.27% of the net asset value of such shares. Putnam Management has advised the Trustees that your fund has over time consistently had a higher yield than the open-end fund.
The 30-day yield on your fund’s shares as calculated in accordance with SEC guidelines (the “SEC yield”) was 3.52% as of June 15, 2006. The SEC yield for class A shares of Putnam California Tax Exempt Income Fund was 3.71% of the net asset value of such shares as of June 30, 2006.
The Trustees and Putnam Management believe that your fund’s yield has historically been higher than that of Putnam California Tax Exempt Income Fund primarily because of your fund’s closed-end structure, which affords the fund greater flexibility for investment and leveraging, which in turn has allowed the fund to generate higher current income for distribution to common shareholders. Putnam Management has advised the Trustees that the current higher SEC yield of the open-end Putnam California Tax Exempt Income Fund reflects current market conditions that make leverage a less effective means of increasing investment income.
* How do the two funds’ expenses compare?
The following table shows each fund’s annual operating expenses as of the end of its last fiscal year, showing expenses that are deducted from fund assets, calculated as a percentage of net assets attributable to common shares.
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Annual Fund Operating Expenses
California Investment | California Tax Exempt | |
Grade Municipal Trust | Income Fund (class A shares) | |
(fiscal year ended | (fiscal year ended | |
April 30, 2006) | September 30, 2005) | |
Management Fees | 0.76% | 0.47% |
Distribution (12b-1) Fees | None | 0.20%* |
Other Expenses | 0.49% | 0.08% |
Total Annual Fund | ||
Operating Expenses | 1.25% | 0.75% |
* Represents a blended rate. 12b-1 fees for class A shares are paid at a rate equal to the weighted average of (i) 0.20% on the net assets of the fund attributable to class A shares purchased and paid for prior to April 1, 2005 and (ii) 0.25% on all other net assets of the fund attributable to class A shares.
In the supporting statement to his shareholder proposal, the proponent asserts that your fund’s expense ratio is nearly 50% higher than that of Class A shares of the open-end Putnam California Tax Exempt Income Fund, which appears to be based on a simple comparison of the Total Annual Fund Operating Expenses shown in the table above. This seemingly simple comparison does not take into account certain important factors:
* This difference in operating expenses is not due solely to the smaller size of your fund, as the proponent asserts. Rather, the principal reason for your fund’s higher operating expenses is that they include additional management fees, custody fees and other expenses associated with maintaining the fund’s investment leverage, which historically have been more than offset by the additional investment income earned through the use of leverage. Under recent market conditions, which have included a closing of the difference between long-term interest rates and the short-term interest rates that serve as a basis for dividend payments on your fund’s preferred shares, leverage has generally provided reduced benefits to your fund and, for certain periods, may have had a net negative effect on returns. In light of the factors involved in this analysis, a simple comparison of operating expenses of a leveraged closed-end fund and an unleveraged open-end fund does not provide a meaningful analysis.
* Further, the table above only partially reflects a reduction of 0.10% in the effective management fee rate (from 0.65% of average weekly net assets attributable to common shares and preferred shares, to 0.55%),
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negotiated by your fund’s Trustees, which took effect on January 1, 2006. Based on current asset levels, the change in management fee would reduce Total Annual Fund Operating Expenses (expressed as a percentage of net assets attributable to common shares) by approximately 0.12% once the new fee has been in effect for a full fiscal year. The fund’s Total Annual Operating Expenses shown above accordingly reflect only the portion of this reduction corresponding to the period from January 1, 2006 through April 30, 2006.
* The following pro forma table of annual operating expenses for your fund revises the numbers in the comparative expense table above to (a) subtract out management fee amounts paid on leveraged assets, (b) take fully into account the recent management fee reduction, and (c) subtract out costs incurred in connection with administering your fund’s preferred share program for investment leverage:
California Investment Grade Municipal Trust(pro forma calculations, based on fiscal year ended April 30, 2006 )
* The performance figures provided in the discussion above of how the investment performance of your fund and Putnam California Tax Exempt Income Fund compare, which show that your fund has outperformed the open-end fund over a number of periods, are calculated net of expenses. Thus, any effect that higher expenses may have on reducing your fund’s performance is already taken into account in calculating its favorable comparative performance data over longer periods.
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* How do the investment goals, policies and restrictions of the two funds to compare?
Both your fund and the open-end Putnam California Tax Exempt Income Fund have the investment objective of seeking as high a level of current income exempt from federal income tax and California personal income tax as Putnam Management believes to be consistent with the preservation of capital. The funds also use similar investment strategies, although your fund’s closed-end structure generally permits it to maintain smaller cash positions. In addition, the open-end fund, by virtue of its larger size, is able to invest in a greater number of securities.
In addition to differences between the two funds regarding the use of leverage, which are discussed elsewhere, there do exist a few, largely technical differences in their investment policies and restrictions. For example, because your fund is classified as “non-diversified” and the open-end fund as “diversified,” your fund has more flexibility to concentrate its investments in fewer issuers. The policies requiring each fund to invest a minimum percentage of its assets in securities producing tax-exempt income also differ. If, in the future, the Trustees were to present a proposal to shareholders to give formal approval for a merger of your fund into Putnam California Tax Exempt Income Fund, these and other differences, together with potential transaction costs associated with aligning the portfolios of the two funds, would be described in greater detail in the accompanying proxy statement.
* What does it mean when fund shares trade at a discount?
Since closed-end funds are not required to redeem their shares, investors in closed-end funds who wish to liquidate their investment must sell their shares in the secondary markets. To promote the availability of active secondary markets for shareholders who wish to sell their shares, your fund has listed its shares for trading on the American Stock Exchange. Prices in these secondary markets are determined by market forces and will fluctuate over time. They will also fluctuate in relation to a fund’s net asset value. Closed-end fund shares generally trade at a discount to their net asset value but at times may trade at a premium to net asset value.
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Putnam Management has advised the Trustees that discount levels for closed-end funds investing primarily in fixed-income securities — such as your fund — appear to fluctuate in relation to conditions in the broader fixed-income markets, generally increasing during periods of rising interest rates and declining during periods of falling interest rates. These market cycles, together with other factors specifically affecting your fund, may result in extended periods of discount in the market price of fund shares. The Trustees recognize that these can partly or entirely offset performance returns that a shareholder would otherwise be able to realize, if that shareholder were to sell shares at a deeper discount than the price at which they were originally purchased. Accordingly, closed-end funds may be more suitable for investors who have a longer investment horizon and who will less likely face the need to liquidate their investments under unfavorable market conditions. Conversely, the existence of discounts at times may also provide attractive opportunities to investors seeking potential additional returns from reductions in discount levels between the time of their purchase and their sale.
As indicated in the table below, while your fund’s common shares have traded at a discount to their net asset value over more recent periods, the discount has fluctuated over time, and at times your fund’s shares have traded at a premium to net asset value. In order to show the range of discounts and premiums at which your fund’s shares have historically traded, the table below presents both the highest market price and the lowest market price at which your fund’s shares closed on any trading day over the course of each full calendar year since inception, in each case expressed as a percentage discount from, or premium to, net asset value (NAV). Thus, the “Highest Market Price” column presents the lowest discount or, if the fund traded above NAV during the year, the highest premium achieved in a given year; conversely, the “Lowest Market Price” column presents the highest discount or, if the fund only traded above NAV during the year, the lowest premium. In addition, the “Average Discount/Premium” column presents the average daily differential between market price and net asset value over the course of each full calendar year since inception.
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Highest Market Price | Lowest Market Price | Average | |
Calendar Year | (relative to NAV) | (relative to NAV) | Discount/Premium |
2005 | -8.76% | -14.46% | -10.89% |
2004 | -5.59% | -13.87% | -10.57% |
2003 | -5.74% | -12.86% | -9.93% |
2002 | -1.75% | -9.08% | -5.32% |
2001 | 4.24% | -7.55% | -2.55% |
2000 | 4.38% | -12.44% | -3.65% |
1999 | 5.44% | -13.87% | -0.94% |
1998 | 5.42% | -2.47% | 1.40% |
1997 | 5.67% | -1.82% | 1.80% |
1996 | 1.12% | -7.17% | -2.01% |
1995 | -2.09% | -10.92% | -6.74% |
1994 | 0.35% | -13.27% | -5.15% |
1993 | 2.20% | -8.32% | -3.13% |
1992 | 6.99% | 3.09% | 5.04% |
* How do the Trustees monitor and address trading discounts?
The Trustees carefully monitor the trading prices of your fund’s shares, recognizing that trading prices and discounts will fluctuate over time. At times when the fund trades at a material discount for an extended period of time, the Trustees may examine possible factors contributing to the situation and consider a broad range of possible actions in an effort to reduce or eliminate the discount. Such actions that could be implemented in a manner consistent with your fund’s closed-end structure might include:
* Communications with the marketplace regarding the benefits of investing in the fund in an effort to increase investor demand for the fund’s shares;
* Repurchases by the fund of its shares at prevailing market prices; and
* Tender offers by the fund to repurchase its shares at net asset value (or at a price above market and below net asset value).
It is possible that these actions may have a temporary effect on a fund’s trading discount, although there is little industry experience that would suggest a long-term impact. Repurchases of shares, whether in the market or in tender offers, reduce the fund’s size and may result in an increase in the fund’s expense ratio. To the extent that shares are repurchased at
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prices below net asset value, however, such repurchases will enhance the net asset value of the fund’s shares and the total return of the remaining shareholders. Recognizing this benefit, the Trustees have authorized share repurchases by certain Putnam closed-end funds on past occasions. More recently, in October 2005, the Trustees authorized all of the Putnam closed-end funds, including your fund, to repurchase up to 5% of their outstanding shares at market prices through October 6, 2006. In March 2006, the Trustees increased this repurchase program to permit the funds to repurchase up to 10% of their outstanding shares over the same time period. The Trustees continue to study the results of the repurchase program to determine its impact on trading discounts and on investment performance. To date, the Trustees have not authorized tender offers but may consider that alternative in the future.
In considering these actions and the current proposal, the Trustees have considered the fact that all shareholders who purchased your fund’s shares presumably made their choice from among a broad array of available investment products available in the marketplace, with an understanding of the potential advantages and disadvantages of closed-end funds. Thus, in considering whether to recommend a fundamental change in the structure of the fund and its investment characteristics, the Trustees have considered whether the closed-end structure of the fund continues to offer the investment advantages contemplated when the fund was originally offered to the marketplace. Especially in light of the recent steps to enhance shareholder returns described above, the Trustees have concluded that the fund remains a viable investment vehicle and that recent discount levels do not currently justify abandoning the advantages of the closed-end structure by converting your fund to open-end status.
* What purpose does investment leverage serve for your fund?
Because of its closed-end status, your fund is permitted under the 1940 Act to maintain a leveraged capital structure consisting of common shares and auction rate preferred shares. As of June 30, 2006, preferred shares of your fund were outstanding with an aggregate liquidation preference of $16 million, which represents leverage of approximately 24% in comparison to your fund’s assets (net of leverage) of approximately $66 million. Because an open-end fund is prohibited under the 1940 Act from issuing preferred shares, your fund would be required to redeem its preferred shares prior to any merger in accordance with the fund’s Bylaws. The leveraged capital structure is designed to enable the common
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shareholders to realize higher current tax-exempt income on their shares than would be obtained without leverage. The dividends paid to holders of preferred shares are generally based on short-term rates, while the assets attributable to such preferred shares are generally invested in longer-term, municipal securities, which typically have higher yields than short-term rates. As long as your fund can invest these assets in higher-yielding investments than the rates paid to preferred shareholders, the common shareholders benefit from the use of this leverage. The Trustees recognize that the use of leverage through preferred shares can increase the risk of the fund’s portfolio and tends to amplify fluctuations in total returns, and that under certain market conditions this can result in lower returns than an unleveraged portfolio.
Although an open-end fund, such as Putnam California Tax Exempt Income Fund, is permitted under the 1940 Act to achieve a leveraged position by borrowing from a bank (subject to certain asset coverage requirements), Putnam Management has generally not judged it to be in the best interests of shareholders to cause that fund to borrow money, as it believes that the costs of leveraging a municipal bond fund other than through preferred shares are generally too high relative to the lower expected returns of the municipal bonds in which the fund invests.
Putnam Management believes that, over time, your fund’s leveraged position is in the best interests of the fund and may contribute both to higher annualized total returns and higher levels of current income.
* What are additional differences between a closed-end and open-end fund?
In addition to the differences outlined above, shareholders evaluating this proposal may wish to consider the following:
* Investment flexibility.Because they are required to maintain the ability to honor redemption requests, open-funds are prohibited by the 1940 Act from investing more than 15% of their assets in securities that are deemed illiquid. Closed-end funds are not subject to this restriction.
* Annual shareholder meetings.Your fund is currently required by the rules of the American Stock Exchange to hold annual meetings of shareholders. Conversion of your fund to open-end status would result in termination of the fund’s listing on the American Stock Exchange, with the result that your fund would no longer be required to hold annual meetings. The open-end Putnam funds have committed to
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holding shareholder meetings for the purpose of electing their Trustees at least every five years (beginning in 2004).
* Dividend reinvestment.Shareholders of your fund currently have the option of participating in the fund’s Dividend Reinvestment Plan, under which cash distributions paid by your fund are generally reinvested through the purchase of additional fund shares at market prices, which currently reflect a discount from net asset value. (At times when your fund’s shares are trading at a premium over their net asset value, such reinvestments are made at the higher of net asset value or 95% of market value.) Shareholders of open-end Putnam funds have the option to reinvest their distributions in additional shares at net asset value at all times. If the fund were to convert to open-end status, shareholders would no longer be able to reinvest dividends at a price below net asset value per share during times when shares are trading at a discount to net asset value.
* Exchange privileges.Shareholders of open-end funds in the Putnam family of funds currently have the privilege of exchanging their investment at net asset value and without sales charges for shares of the same class of more than 65 open-end funds in the Putnam group. Shareholders of your fund do not have that privilege.
* What is the voting requirement for approving the shareholder proposal?
Approval of the shareholder proposal requesting that the Trustees of your fund take the steps necessary to convert your fund to an open-end investment company or otherwise permit shareholders of your fund to realize the net asset value of their shares requires the affirmative vote of the lesser of (a) more than 50% of the outstanding shares of the fund, or (b) 67% or more of the shares of the fund present (in person or by proxy) at the meeting if more than 50% of the outstanding shares of the fund are present at the meeting in person or by proxy.The Trustees, including a majority of the shares voted on the proposal. The fund’s common shareholders and preferred shareholders will vote together as a single class on this proposal.
The Trustees believe that the continued operation of your fund as a closed-end fund is in the best long-term interests of your fund’s shareholders, and unanimously recommend a vote against the shareholder proposal.
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4. SHAREHOLDER PROPOSAL REQUESTING THETRUSTEES TO TAKE THE STEPS NECESSARY TO MERGE YOUR FUND INTO PUTNAM NEW YORK TAX EXEMPT INCOME FUND, AN OPEN-END FUND, OR OTHERWISE TO PERMIT SHAREHOLDERS TO REALIZE THE NET ASSET VALUE OF THEIR SHARES(Putnam New York Investment Grade Municipal Trust Only).
* What is this proposal?
A shareholder of your fund (the “proponent”) has informed the fund that he intends to present a proposal for action at the Annual Meeting of Shareholders. The proposal submitted by the proponent and the accompanying supporting statement read as follows:
RESOLVED: The shareholders ask the Trustees to take the steps necessary to merge the Putnam New York Investment Grade Municipal Trust (PMN) into the Putnam New York Tax Exempt Income Fund, an open-end fund, or otherwise permit shareholders to realize net asset value (NAV) for their shares.
Supporting Statement
In March, the Trustees of the Putnam Managed High Yield Trust (PTM) did the right thing by recommending its merger into a Putnam open-end fund pursuing similar investment objectives and strategies. The Trustees of PMN, who are not “interested persons” of Putnam Management or the same people as the PTM Trustees, should once again do the right thing by recommending the merger of PMN into the open-end New York fund which pursues similar investment objectives and strategies.
The reasons for merging PMN are basically the same as those for merging PTM: high discount, small size, high expenses, poor liquidity, and performance that has lagged its closed-end peers for the last ten years.
* Like PTM before the merger announcement, PMN has persistently traded at a double digit discount from NAV. As of the date of this proposal (April 28, 2006), PCA’s discount is 11.4% . No other New York muni fund is saddled with such gross under-valuation.
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* PMN and the Putnam New York Tax Exempt Income Fund have similar investment objectives, the same Trustees, the same Investment Manager, and the same individuals overseeing the bond portfolios. But due to PMN’s small size, its operating expense ratio (even with a recent 0.1% fee reduction) is more than 60% higher than that for the Class A shares of the much larger open-end fund.
* PMN is illiquid. Daily trading volume averages less than 6000 shares. Even a modest order to buy or sell can move the market.
* PMN’s performance has lagged the Lipper average for New York closed-end muni funds, over the past 1 year, 5 years and 10 years ending 10/31/05. Its performance has lagged the Lipper average for general leveraged muni funds over the past 1 year, 5 years and 10 years ending 3/31/06. Morningstar gives PMN a below-average two stars; the Putnam open-end New York fund gets three stars.
It’s not a pretty picture.
I believe the Trustees should act in the interest of PMN shareholders as they have done for PTM shareholders, by recommending a merger that will reduce operating expenses, improve liquidity, and increase share value. Merging PMN into the Putnam New York Tax Exempt Income Fund is simply the right thing to do. I call on the Trustees to put such a measure before shareholders AND to recommend that shareholders vote in favor ofapprove the merger proposal.
The proponent’s name and address and the number of shares he owns in your fund will be furnished by the Clerk of your fund upon request.
* What would happen if the proposal passes?proposed new management contracts.
The shareholder proposal does not call for a shareholder vote to approve a merger of your fund with Putnam New York Tax Exempt Income Fund at this time, but rather proposes that the shareholders ask the Trustees to take action to effect such a merger. If the proposal passes at the Annual Meeting of Shareholders, the Trustees would continue to exercise their fiduciary duty to act in the interests of shareholders in investigating the details and potential benefits of such a merger transaction, but would not be obligated at any future meeting to recommend that the fund be merged
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into Putnam New York Tax Exempt Income Fund or any other fund. In order to approve a merger, the Trustees would be required by SEC rules to determine that the merger would be in the best interests of shareholders of both funds and that the merger would not dilute the interests of either fund’s shareholders.
In any event, even if the Trustees decide, following any approval of the shareholder proposal (or otherwise), to recommend such a merger, an additional proxy statement and approval by the shareholders of your fund would be required. Such a proxy statement would describe in more detail the merger terms, together with certain legal, accounting, proxy and other costs that your fund might incur in connection with a merger.
Though it primarily addresses a potential merger, the shareholder’s proposal alternatively requests that the Trustees take other steps enabling shareholders to realize the net asset value of their shares — this might entail such measures as converting the fund into an open-end fund, liquidating the fund and distributing its assets, or engaging in a tender offer to repurchase fund shares. It is important to note, however, that the only way to ensure that all shareholders realize the net asset value for their shares would be to eliminate the closed-end structure of your fund, whether it is by merger, open-ending, liquidation or otherwise. Thus, although the discussion below focuses on a merger, many of the considerations apply equally to other measures that would enable shareholders to realize the net asset value for their shares.
* What do the Trustees recommend?
The Trustees believe that the continued operation of your fund as a closed-end fund is in the best long-term interests of your fund’s shareholders. Accordingly, the Trustees of your fund unanimously recommend that shareholders vote “AGAINST” this proposal.
* Why are the Trustees recommending a vote against the proposal?
In recommending a vote against the shareholder proposal, the Trustees considered the following factors:
* Performance. Your fund’s annualized total returns, based on net asset value (NAV), are higher than those of the open-end Putnam New York Tax Exempt Income Fund for each of the most recent 3-, 5- and 10-year periods, though 1-year performance has lagged somewhat. While your
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fund’s returns at market price have lagged the open-end fund’s returns, the Trustees consider market-price returns to be less indicative of long-term investment opportunity than results at NAV. More details on performance are provided below.
* Yield.Your fund’s yield has historically been higher than that of Putnam New York Tax Exempt Income Fund, although currently your fund’s yield at net asset value is somewhat lower than that of the open-end fund. More details on yields and dividend rates are provided below.
* Potential investment advantages.The Trustees believe that your fund’s closed-end status provides potential investment advantages not available to open-end fund investors. Because your fund’s shares are not redeemable, your fund is not required to maintain short-term, lower-yielding investments in anticipation of possible redemptions, and generally can be more fully invested in higher-yielding securities. As a closed-end fund, your fund does not experience the cash flows associated with sales and redemptions of open-end fund shares, which create transaction costs that are borne by long-term shareholders. Such cash flows may at times also require temporary investment in short-term, lower-yielding securities, pending investment in longer-term, higher-yielding securities.
* Effects of leverage.The Trustees believe that your fund’s historically higher performance and yields compared to the open-end fund are, in significant part, attributable to the fund’s leveraged capital structure, which is designed to enable the common shareholders to realize higher current tax-exempt income on their shares that would be obtained without leverage. The Trustees recognize, however, that the use of leverage involves greater risk, and may increase volatility in investment returns for common shareholders. The potential advantages of using investment leverage are highly dependent on the prevailing interest rate environment; when long-term interest rates are not substantially higher than the short-term interest rates that serve as the basis for dividend payments to your fund’s preferred shareholders, the use of investment leverage may not be advantageous to common shareholders. In particular, Putnam Management has advised the Trustees that your fund’s recent underperformance relative to the open-end fund is due, at least in part, to market conditions that make leverage currently a less effective means of increasing returns. If your fund were to cease to be closed-end, it would have to redeem all of its outstanding preferred shares. Although as an open-end fund your fund could leverage through borrowing, it would likely incur higher costs in doing so.
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* Trading discounts.In reviewing the trading information for your fund, the Trustees took into account the fact that its shares have consistently traded at a discount to net asset value over the past few years. The Trustees recognized that shareholders would be able to redeem their shares for a greater amount following a merger than is currently possible through sales on the open market. They reviewed the possible causes and effects of discounts, which are discussed at more length below, and noted that discount levels for your fund have fluctuated over the years and that, for some periods, fund shares have traded at substantially lower discounts or at premiums.
* Recent actions enhancing shareholder value.The Trustees have over the past year reviewed various measures to increase shareholder value for each of the Putnam closed-end funds. In October 2005, the Trustees authorized a share repurchase program for all of the Putnam closed-end funds, which is discussed below. Furthermore, the Trustees initiated changes to your fund’s management contract, which went into effect in January 2006, resulting in a reduction of the effective management fee rate from 0.65% to 0.55%, measured as a percentage of average assets of the fund (including assets attributable to preferred shares). The Trustees believe that these recent steps have the potential to enhance shareholder returns, which in turn may support increased demand for your fund’s shares.
* What is Putnam New York Tax Exempt Income Fund?
Putnam New York Tax Exempt Income Fund is the open-end fund into which the shareholder proposal suggests that your fund merge. The open-end fund, which is registered with the SEC as a diversified fund, commenced operations on September 2, 1983. Like your fund, this fund seeks as high a level of current income exempt from federal income tax and New York personal income tax as Putnam Management believes to be consistent with preservation of capital.
Your fund and Putnam New York Tax Exempt Income Fund are managed by the same management team at Putnam Management and their Boards of Trustees consist of the same individuals. As described in further detail below, the two funds also have similar investment policies and restrictions and employ similar investment strategies. As of June 30, 2006, Putnam New York Tax Exempt Income Fund had net assets of approximately $1.17 billion. As of that same date, your fund’s
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net assets (exclusive of the liquidation preference of your fund’s preferred shares, which is $10 million)) were approximately $37 million.
Included inAppendix Bare the Financial Highlights of your fund and Putnam New York Tax Exempt Income Fund from each fund’s most recent shareholder report. These financial highlights contain information about each fund’s assets, expenses, performance and distributions.
* How does the investment performance of the funds compare?
The following table summarizes the annualized total return of your fund for the periods shown based on the net asset value and the market price of its shares. The table also shows the performance of the open-end Putnam New York Tax Exempt Income Fund, the performance of your fund’s primary benchmark index and the average performance of funds in its peer group of closed-end funds as determined by Lipper Inc., an independent fund rating agency. Of course, past performance is no guarantee of future returns.
Annualized Total Returns as of June 30, 2006
1 year | 3 years | 5 years | 10 years | |
Your Fund (Net Asset Value) | 0.36% | 4.42% | 5.21% | 5.76% |
Your Fund (Market Price) | (2.30) | 1.87 | 3.44 | 4.45 |
Putnam New York Tax Exempt | ||||
Income Fund (Open-End) | ||||
Class A Shares (Net Asset Value) | 0.72 | 2.79 | 4.32 | 5.13 |
Lehman Municipal Bond Index | 0.87 | 3.24 | 5.05 | 5.79 |
Lipper New York Municipal | ||||
Debt Funds (Closed-End) Average | 1.67 | 5.39 | 6.11 | 6.18 |
Lipper New York Municipal Debt | ||||
Funds Average | 0.50 | 2.76 | 4.28 | 5.00 |
As the foregoing table makes clear, your fund’s returns at NAV for the 3-, 5- and 10-year quoted periods are higher than those of the open-end fund. In addition, at NAV your fund has outperformed the Lehman Municipal Bond Index, which is the benchmark index for both funds, over those periods. Annualized total returns are calculated net of expenses, so the comparative performance figures above already adjust for the higher expense ratio of your fund relative the open-end fund. The Trustees were informed by Putnam Management that the outperformance at NAV for these periods is due, in part, to the fund’s leveraged capital structure
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(which is described in more detail below), and that the leverage taken on by your fund involves increased risk and tends to amplify fluctuations in the total return of the fund, depending on market conditions.
The table above also shows that your fund’s returns at market price lag those of the open-end fund for each period. Because performance at market price reflects the impact of market forces, which are inherently unpredictable, the Trustees consider performance at net asset value to be more indicative of the long-term investment opportunity offered by your fund.
Your fund’s returns, as indicated in the table, have been lower than the average for the fund’s Lipper peer group of leveraged closed-end New York municipal debt funds. Putnam Management has informed the Trustees that it believes this is likely due to your fund’s relatively lesser use of leverage. In periods when long-term interest rates were signifi-cantly higher than short-term rates, this limited the fund’s performance relative to more highly-leveraged closed-end funds. However, Putnam Management believes that this under-leverage relative to the peer group could be advantageous to your fund’s relative performance in different market conditions.
The Trustees believe that shareholders should evaluate your fund’s investment performance, both at net asset value and at market price, in light of the fund’s stated investment goal:
To seek as high a level of current income exempt from federal income tax and New York State and New York City personal income tax as Putnam Management believes is consistent with preservation of capital.
Putnam Management has advised the Trustees that, consistent with this goal, it manages your fund’s portfolio in a way that seeks to balance the pursuit of investment yield against the risks to principal that might result from an undue focus on yield alone. This means that your fund will not necessarily invest in the highest yielding securities available in the marketplace or engage in maximum permitted leverage if doing so would involve undue risk of loss of principal due to possible credit defaults or interest rate changes. Thus, there may be times when your fund’s portfolio will generate an investment yield that is lower than that of some competing investment products that are willing to accept greater risk. Since investment yields appear to be an important factor
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in influencing market prices, this emphasis on total return may at times contribute to discount levels that are higher than those of competing products. Over longer periods of time, however, Putnam Management believes that this approach to managing risk should produce less principal volatility and higher overall investment returns. There is, of course, no guarantee that this will be the case.
* How do the two funds’ dividend rates and yields compare?
As of June 30, 2006, your fund’s yield, calculated as your fund’s established dividend rate as a percentage of the market price of its common shares, was 4.62% . When calculated as a percentage of net asset value, your fund’s yield on that same date was 3.94% . By contrast, as of June 30, 2006, the dividend rate for class A shares of Putnam New York Tax Exempt Income Fund was 4.19% of the net asset value of such shares. Putnam Management has advised the Trustees that your fund has over time consistently had a higher yield than the open-end fund.
The 30-day yield on your fund’s shares as calculated in accordance with SEC guidelines (the “SEC yield”) was 3.52% as of June 15, 2006. The SEC yield for class A shares of Putnam New York Tax Exempt Income Fund was 3.64% of the net asset value of such shares as of June 30, 2006.
The Trustees and Putnam Management believe that your fund’s yield has historically been higher than that of Putnam New York Tax Exempt Income Fund primarily because of your fund’s closed-end structure, which affords the fund greater flexibility for investment and leveraging, which in turn has allowed the fund to generate higher current income for distribution to common shareholders. Putnam Management has advised the Trustees that the current higher SEC yield of the open-end Putnam New York Tax Exempt Income Fund reflects current market conditions that make leverage a less effective means of increasing investment income.
* How do the two funds’ expenses compare?
The following table shows each fund’s annual operating expenses as of the end of its last fiscal year, showing expenses that are deducted from fund assets, calculated as a percentage of net assets attributable to common shares.
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Annual Fund Operating Expenses
New York Investment | New York Tax Exempt | |
Grade Municipal Trust | Income Fund (class A shares) | |
(fiscal year ended | (fiscal year ended | |
April 30, 2006) | November 30, 2005) | |
Management Fees | 0.78% | 0.50% |
Distribution (12b-1) Fees | None | 0.20%* |
Other Expenses | 0.69% | 0.09% |
Total Annual Fund | ||
Operating Expenses | 1.47% | 0.79% |
* Represents a blended rate. 12b-1 fees for class A shares are paid at a rate equal to the weighted average of (i) 0.20% on the net assets of the fund attributable to class A shares purchased and paid for prior to April 1, 2005 and (ii) 0.25% on all other net assets of the fund attributable to class A shares.
In the supporting statement to his shareholder proposal, the proponent asserts that your fund’s expense ratio is more than 60% higher than that of Class A shares of the open-end Putnam New York Tax Exempt Income Fund, which appears to be based on a simple comparison of the Total Annual Fund Operating Expenses shown in the table above. This seemingly simple comparison does not take into account certain important factors:
* This difference in operating expenses is not due solely to the smaller size of your fund, as the proponent asserts. Rather, the principal reason for your fund’s higher operating expenses is that they include additional management fees, custody fees and other expenses associated with maintaining the fund’s investment leverage, which historically have been more than offset by the additional investment income earned through the use of leverage. Under recent market conditions, which have included a closing of the difference between long-term interest rates and the short-term interest rates that serve as a basis for dividend payments on your fund’s preferred shares, leverage has generally provided reduced benefits to your fund and, for certain periods, may have had a net negative effect on returns. In light of the factors involved in this analysis, a simple comparison of operating expenses of a leveraged closed-end fund and an unleveraged open-end fund does not provide a meaningful analysis.
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* Further, the table above only partially reflects a reduction of 0.10% in the effective management fee rate (from 0.65% of average weekly assets attributable to common shares and preferred shares, to 0.55%), negotiated by your fund’s Trustees, which took effect on January 1, 2006. Based on current asset levels, the change in management fee would reduce Total Annual Fund Operating Expenses (expressed as a percentage of net assets attributable to common shares) by approximately 0.13% once the new fee has been in effect for a full fiscal year. The fund’s Total Annual Operating Expenses shown above accordingly reflect only the portion of this reduction corresponding to the period from January 1, 2006 through April 30, 2006.
* The following pro forma table of annual operating expenses for your fund revises the numbers in the comparative expense table above to (a) subtract out management fee amounts paid on leveraged assets, (b) take fully into account the recent management fee reduction, and (c) subtract out costs incurred in connection with administering your fund’s preferred share program for investment leverage:
New York Investment Grade Municipal Trust (pro forma calculations, based on fiscal year ended April 30, 2006 )
* The performance figures provided in the discussion above of how the investment performance of your fund and Putnam New York Tax Exempt Income Fund compare, which show that your fund has outperformed the open-end fund at net asset value over a number of periods, are calculated net of expenses. Thus, any effect that higher expenses may have on reducing your fund’s performance is already taken into account in calculating its favorable comparative performance data over longer periods.
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* How do the investment goals, policies and restrictions of the two funds to compare?
Both your fund and the open-end Putnam New York Tax Exempt Income Fund have the investment objective of seeking as high a level of current income exempt from federal income tax and New York State and New York City personal income tax as Putnam Management believes to be consistent with the preservation of capital. The funds also use similar investment strategies, although your fund’s closed-end structure generally permits it to maintain smaller cash positions. In addition, the open-end fund, by virtue of its larger size, is able to invest in a greater number of securities.
In addition to differences between the two funds regarding the use of leverage, which are discussed elsewhere, there do exist a few, largely technical differences in their investment policies and restrictions. For example, because your fund is classified as “non-diversified” and the open-end fund as “diversified,” your fund has more flexibility to concentrate its investments in fewer issuers. The policies requiring each fund to invest a minimum percentage of its assets in securities producing tax-exempt income also differ. If, in the future, the Trustees were to present a proposal to shareholders to give formal approval for a merger of your fund into Putnam New York Tax Exempt Income Fund, these and other differences, together with potential transaction costs associated with aligning the portfolios of the two funds, would be described in greater detail in the accompanying proxy statement.
* What does it mean when fund shares trade at a discount?
Since closed-end funds are not required to redeem their shares, investors in closed-end funds who wish to liquidate their investment must sell their shares in the secondary markets. To promote the availability of active secondary markets for shareholders who wish to sell their shares, your fund has listed its shares for trading on the American Stock Exchange. Prices in these secondary markets are determined by market forces and will fluctuate over time. They will also fluctuate in relation to a fund’s net asset value. Closed-end fund shares generally trade at a discount to their net asset value but at times may trade at a premium to net asset value.
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Putnam Management has advised the Trustees that discount levels for closed-end funds investing primarily in fixed-income securities — such as your fund — appear to fluctuate in relation to conditions in the broader fixed-income markets, generally increasing during periods of rising interest rates and declining during periods of falling interest rates. These market cycles, together with other factors specifically affecting your fund, may result in extended periods of discount in the market price of fund shares. The Trustees recognize that these can partly or entirely offset performance returns that a shareholder would otherwise be able to realize, if that shareholder were to sell shares at a deeper discount than the price at which they were originally purchased. Accordingly, closed-end funds may be more suitable for investors who have a longer investment horizon and who will less likely face the need to liquidate their investments under unfavorable market conditions. Conversely, the existence of discounts at times may also provide attractive opportunities to investors seeking potential additional returns from reductions in discount levels between the time of their purchase and their sale.
As indicated in the table below, while your fund’s common shares have traded at a discount to their net asset value over more recent periods, the discount has fluctuated over time, and at times your fund’s shares have traded at a premium to net asset value. In order to show the range of discounts and premiums at which your fund’s shares have historically traded, the table below presents both the highest market price and the lowest market price at which your fund’s shares closed on any trading day over the course of each full calendar year since inception, in each case expressed as a percentage discount from, or premium to, net asset value (NAV). Thus, the “Highest Market Price” column presents the lowest discount or, if the fund traded above NAV during the year, the highest premium achieved in a given year; conversely, the “Lowest Market Price” column presents the highest discount or, if the fund only traded above NAV during the year, the lowest premium. In addition, the “Average Discount/Premium” column presents the average daily differential between market price and net asset value over the course of each full calendar year since inception.
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Highest Market Price | Lowest Market Price | Average | |
Calendar Year | (relative to NAV) | (relative to NAV) | Discount/Premium |
2005 | -9.53% | -15.94% | -13.26% |
2004 | -6.69% | -14.58% | -11.54% |
2003 | -7.13% | -13.20% | -10.21% |
2002 | -3.33% | -12.18% | -7.85% |
2001 | 0.88% | -9.69% | -6.68% |
2000 | 0.08% | -12.60% | -5.43% |
1999 | 2.77% | -15.17% | -2.09% |
1998 | 4.83% | -3.91% | 0.59% |
1997 | 5.06% | -8.98% | -2.49% |
1996 | 0.22% | -9.74% | -4.68% |
1995 | 2.10% | -8.39% | -1.67% |
1994 | 3.94% | -14.00% | -2.79% |
1993 | 5.26% | -3.78% | 0.60% |
1992 | 7.22% | 4.53% | 5.32% |
* How do the Trustees monitor and address trading discounts?
The Trustees carefully monitor the trading prices of your fund’s shares, recognizing that trading prices and discounts will fluctuate over time. At times when the fund trades at a material discount for an extended period of time, the Trustees may examine possible factors contributing to the situation and consider a broad range of possible actions in an effort to reduce or eliminate the discount. Such actions that could be implemented in a manner consistent with your fund’s closed-end structure might include:
* Communications with the marketplace regarding the benefits of investing in the fund in an effort to increase investor demand for the fund’s shares;
* Repurchases by the fund of its shares at prevailing market prices; and
* Tender offers by the fund to repurchase its shares at net asset value (or at a price above market and below net asset value).
It is possible that these actions may have a temporary effect on a fund’s trading discount, although there is little industry experience that would suggest a long-term impact. Repurchases of shares, whether in the market or in tender offers, reduce the fund’s size and may result in an
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increase in the fund’s expense ratio. To the extent that shares are repurchased at prices below net asset value, however, such repurchases will enhance the net asset value of the fund’s shares and the total return of the remaining shareholders. Recognizing this benefit, the Trustees have authorized share repurchases by certain Putnam closed-end funds on past occasions. More recently, in October 2005, the Trustees authorized all of the Putnam closed-end funds, including your fund, to repurchase up to 5% of their outstanding shares at market prices through October 6, 2006. In March 2006, the Trustees increased this repurchase program to permit the funds to repurchase up to 10% of their outstanding shares over the same time period. The Trustees continue to study the results of the repurchase program to determine its impact on trading discounts and on investment performance. To date, the Trustees have not authorized tender offers but may consider that alternative in the future.
In considering these actions and the current proposal, the Trustees have considered the fact that all shareholders who purchased your fund’s shares presumably made their choice from among a broad array of available investment products available in the marketplace, with an understanding of the potential advantages and disadvantages of closed-end funds. Thus, in considering whether to recommend a fundamental change in the structure of the fund and its investment characteristics, the Trustees have considered whether the closed-end structure of the fund continues to offer the investment advantages contemplated when the fund was originally offered to the marketplace. Especially in light of the recent steps to enhance shareholder returns described above, the Trustees have concluded that the fund remains a viable investment vehicle and that recent discount levels do not currently justify abandoning the advantages of the closed-end structure by converting your fund to open-end status.
* What purpose does investment leverage serve for your fund?
Because of its closed-end status, your fund is permitted under the 1940 Act to maintain a leveraged capital structure consisting of common shares and auction rate preferred shares. As of June 30, 2006, preferred shares of your fund were outstanding with an aggregate liquidation preference of $10 million, which represents leverage of approximately 27% in comparison to your fund’s assets (net of leverage) of approximately $37 million. Because an open-end fund is prohibited under the 1940 Act from issuing preferred shares, your fund would be required to redeem its preferred shares prior to any merger in accordance with the fund’s
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Bylaws. The leveraged capital structure is designed to enable the common shareholders to realize higher current tax-exempt income on their shares than would be obtained without leverage. The dividends paid to holders of preferred shares are generally based on short-term rates, while the assets attributable to such preferred shares are generally invested in longer-term, municipal securities, which typically have higher yields than short-term rates. As long as your fund can invest these assets in higher-yielding investments than the rates paid to preferred shareholders, the common shareholders benefit from the use of this leverage. The Trustees recognize that the use of leverage through preferred shares can increase the risk of the fund’s portfolio and tends to amplify fluctuations in total returns, and that under certain market conditions this can result in lower returns than an unleveraged portfolio.
Although an open-end fund, such as Putnam New York Tax Exempt Income Fund, is permitted under the 1940 Act to achieve a leveraged position by borrowing from a bank (subject to certain asset coverage requirements), Putnam Management has generally not judged it to be in the best interests of shareholders to cause that fund to borrow money, as it believes that the costs of leveraging a municipal bond fund other than through preferred shares are generally too high relative to the lower expected returns of the municipal bonds in which the fund invests.
Putnam Management believes that, over time, your fund’s leveraged position is in the best interests of the fund and may contribute both to higher annualized total returns and higher levels of current income.
* What are additional differences between a closed-end and open-end fund?
In addition to the differences outlined above, shareholders evaluating this proposal may wish to consider the following:
* Investment flexibility.Because they are required to maintain the ability to honor redemption requests, open-funds are prohibited by the 1940 Act from investing more than 15% of their assets in securities that are deemed illiquid. Closed-end funds are not subject to this restriction.
* Annual shareholder meetings.Your fund is currently required by the rules of the American Stock Exchange to hold annual meetings of shareholders. Conversion of your fund to open-end status would result in termination of the fund’s listing on the American Stock Exchange, with the result that your fund would no longer be required to hold
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annual meetings. The open-end Putnam funds have committed to holding shareholder meetings for the purpose of electing their Trustees at least every five years (beginning in 2004).
* Dividend reinvestment.Shareholders of your fund currently have the option of participating in the fund’s Dividend Reinvestment Plan, under which cash distributions paid by your fund are generally reinvested through the purchase of additional fund shares at market prices, which currently reflect a discount from net asset value. (At times when your fund’s shares are trading at a premium over their net asset value, such reinvestments are made at the higher of net asset value or 95% of market value.) Shareholders of open-end Putnam funds have the option to reinvest their distributions in additional shares at net asset value at all times. If the fund were to convert to open-end status, shareholders would no longer be able to reinvest dividends at a price below net asset value per share during times when shares are trading at a discount to net asset value.
* Exchange privileges.Shareholders of open-end funds in the Putnam family of funds currently have the privilege of exchanging their investment at net asset value and without sales charges for shares of the same class of more than 65 open-end funds in the Putnam group. Shareholders of your fund do not have that privilege.
* What is the voting requirement for approving the shareholder proposal?
Approval of the shareholder proposal requesting that the Trustees of your fund take the steps necessary to convert your fund to an open-end investment company or otherwise permit shareholders of your fund to realize the net asset value of their shares requires the affirmative vote of a majority of the shares voted on the proposal. The fund’s common shareholders and preferred shareholders will vote together as a single class on this proposal.
The Trustees believe that the continued operation of your fund as a closed-end fund is in the best long-term interests of your fund’s shareholders, and unanimously recommend a vote against the shareholder proposal.
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* Further Information About Voting and the Special Meeting
Quorum and Methods of Tabulation.The shareholders of each fund vote separately with respect to eachthe proposal. In the case of each fundall closed-end funds, a majority of the shares entitled to vote constitutes a quorum for the transaction of business with respect to any proposal at the meeting (unless otherwise noted inmeeting. In the proxy statement), except that, where the preferred shares or common shares shall vote as separate classes, then a majoritycase of each other fund, 30% of the aggregate numbershares entitled to vote constitutes a quorum. Shares of sharesall classes of each class shall be necessary to constitutefund vote together as a quorum for the transaction of business by thatsingle class. Votes cast by proxy or in person at the meeting will be counted by persons appointed by your fund as tellers for the meeting. The tellers will count the total number of votes cast “for” approval of athe proposal for purposes of determining whether sufficient affirmative votes have been cast. Shares represented by proxies that reflect abstentions and “broker non-votes” (i.e., shares held by brokers or nominees as to which (i) instructions have not been received from the beneficial owners or the persons entitled to vote and (ii) the broker or nominee does not have the discretionary voting power on a particular matter) will be counted as shares that are present and entitled to vote on the matter for purposes of determining the presence of a quorum.
With respectThe documents that authorize Putnam Fiduciary Trust Company to act as Trustee for certain individual retirement accounts (including traditional, Roth and SEP IRAs, 403(b)(7) accounts and Coverdell Education Savings Accounts) provide that if an account owner does not submit voting instructions for his or her shares, Putnam Fiduciary Trust Company will vote such shares in the electionsame proportions as other shareholders with similar accounts have submitted voting instructions for their shares. Shareholders should be aware that this practice, known as “echo-voting,” may have the effect of Trustees and Proposals 3 and 4, neither abstentions nor broker non-votes have an effect onincreasing the outcomenumber of shares voted in favor of the proposal. With respect to Proposal 2, abstentionsproposal (possibly increasing the likelihood that the proposal will be approved) and that Putnam Fiduciary Trust Company, which is an affiliate of Putnam Management, may benefit indirectly from the approval of the proposed new management contracts.
Abstentions and broker non-votes have the effect of a negative vote on the proposal. Treating broker non-votes as negative votes may result in a proposal not being approved, even though the votes cast in favor would have been sufficient to approve the proposal if some or all of the broker non-votes had been withheld. In certain circumstances in which thea fund has receivedsufficient votes to approve a matter being recommended for approval by the fund’s Trustees, the fund may request that brokers and nominees, in their discretion, withhold submission of broker non-votes in order to avoid the need for solicitation of additional votes in favor of the proposal. TheA fund may also request that selected brokers and nominees, in their discretion, submit broker non-votes, if doing so is necessary to obtain a quorum.
Shareholders who object to any proposal in this Proxy Statement will not be entitled under Massachusetts law or your fund’sthe Agreement and Declaration of Trust of the particular Putnam fund to demand payment for, or an appraisal of, their shares.
Special Rule for Proportional Voting((for Putnam High Yield Municipal Trust, Putnam Investment Grade Municipal Trust, Putnam Managed Municipal Income Trust, Putnam Municipal Bond Fund and Putnam Municipal Opportunities Trust only)Trust)..For funds listed on the New York Stock
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Exchange that have outstanding preferred shares, in accordance with the rules of the exchange,New York Stock Exchange, brokerage firms may vote for or against a proposal, on behalf of their clients who beneficially own the remarketed or auction rate preferred shares and from whom they have not received voting instructions, in the same proportion as votes for and against such proposal have been received from holders of preferred shares if (i) the holders of a minimum of 30% of the outstanding preferred shares have been voted by the holders of preferred shares, (ii) holders of less than 10% of the outstanding preferred sharesshar es have voted against suchthe proposal and (iii) the holders of the common shares have approved suchthe proposal.
Other business.The Trustees know of no matters other than those set forth hereindescribed in this proxy statement to be brought before the meeting. If, however, any other matters properly come before the Meeting,meeting, proxies will be voted on such matters in accordance with the judgment of the persons named in the enclosed form of proxy.
Simultaneous meetings.The meeting of shareholders of your fund is called to be held at the same time as the meetings of shareholders of certain of the other Putnam funds. It is anticipated that all meetings will be held simultaneously.
If any shareholder at the meeting objects to the holding of a simultaneous meeting and moves for an adjournment of the meeting to a time promptly after the simultaneous meetings, the persons named as proxies will vote in favor of such adjournment.
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Information for all Putnam fundsexceptfunds that are series of Putnam Variable Trust
Solicitation of proxies.In addition to soliciting proxies by mail, Trustees of your fund and employees of Putnam Management, Putnam Fiduciary Trust Company and Putnam Retail Management may solicit proxies in person or by telephone. Your fund may arrange to have a proxy solicitation firm call you to record your voting instructions by telephone. The procedures for voting proxies by telephone are designed to authenticate shareholders’ identities, to allow them to authorize the voting of their shares in accordance with their instructions and to confirm that their instructions have been properly recorded. Your fund has been advised by counsel that these procedures are consistent with the requirements of applicable law. If these procedures were subject to a successful legal challenge, such votes would not be counted at the meeting. Your fund is unaware of any such challenge at this time. Shareholders would be called at the phone numbernumb er Putnam Management has in its records for their accounts, and would be asked for their Social Security number or other identifying information. The
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shareholders would then be given an opportunity to authorize the proxies to vote their shares at the meeting in accordance with their instructions. To ensure that the shareholders’ instructions have been recorded correctly, they will also receive a confirmation of their instructions in the mail. A special toll-free number will be available in case the information contained in the confirmation is incorrect.
Common shareholders have the opportunity to submit their voting instructions via the Internet by utilizingusing a program provided by a third partythird-party vendor hired by Putnam Management or by automated telephone service. The giving of a proxy will not affect your right to vote in person should you decide to attend the meeting. To use the Internet, please access the Internet address listed on your proxy card and follow the instructions on the internetInternet site. To record your voting instructions via automated telephone service, use the toll-free number listed on your proxy card. The Internet and telephone voting procedures are designed to authenticate shareholder identities, to allow shareholders to give their voting instructions, and to confirm that shareholders’ instructions have been recorded properly. Shareholders voting via the Internet should understand that there may be costs associated with electronic access, such as usage charges from Internet access providers and telephone companies, that must be borne by the shareholders. The Internet and automated phone voting options are not available for use by preferred shareholders.
Your fund’s Trustees have adopted a general policy of maintaining confi-dentialityconfidentiality in the voting of proxies. Consistent with this policy, your fund may solicit proxies from shareholders who have not voted their shares or who have abstained from voting, including brokers and nominees.
Persons holding shares as nominees will, upon request, be reimbursed for their reasonable expenses in soliciting instructions from their principals. Your fund has retained at its own expense MIS, 60 Research Road, Hingham, MA, 02043-4393 to aid in the solicitation of instructions for registered and nominee accounts, for a fee not to exceed $7,500 in the aggregate for all funds. The expenses of the preparation of proxy statements and related materials, including printing and delivery costs, are borne by each fund.
Revocation of proxies.Proxies, including proxies given by telephone or over the Internet, may be revoked at any time before they are voted either (i) by a written revocation received by the Clerk of your fund, (ii) by properly executing a later-dated proxy, (iii) by recording later-dated
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voting instructions by telephone or via the Internet, (iv) in the case of brokers and nominees, by submitting written instructions to your fund’s solicitation agent or the applicable record shareholdershareholders, or (v) by attending the meeting and voting in person.
Information for funds that are series of Putnam Variable Trust
Voting Process.With respect to funds that are series of Putnam Variable Trust only, as of the Record Date, certain insurance companies (each, an “Insurance Company”) were shareholders of record of each fund that is a series of Putnam Variable Trust. Each Insurance Company will vote shares of the fund or funds held by it in accordance with voting instructions received from variable annuity contract and variable life insurance policy owners (collectively, the “Contract Owners”) for whose accounts the shares are held. Accordingly, with respect to funds that are series of Putnam Variable Trust, this proxy statement is also intended to be used by each Insurance Company in obtaining these voting instructions from Contract Owners. In the event that a Contract Owner gives no instructions, the relevant Insurance Company will vote the shares of the appropriate fund attributable to the Contract Owner in the same proportion as shares of that fund for which it has received instructions. One effect of this system of proportional voting is that, if only a small number of Contract Owners provide voting instructions, this small number of Contract Owners may determine the outcome of a vote for a fund.
Solicitation of proxies.In addition to soliciting proxies and voting instructions by mail, the Trustees of your fund and employees of Putnam Management, Putnam Fiduciary Trust Company, Putnam Retail Management and the Insurance Companies may solicit voting instructions from Contract Owners in person or by telephone. Your fund may arrange to have a proxy solicitation firm call you to record your voting instructions by telephone. The procedures for solicitation of proxies and voting
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instructions by telephone are designed to authenticate Contract Owners’ identities, to allow them to authorize the voting of their units in accordance with their instructions and to confirm that their instructions have been properly recorded. Your fund has been advised by counsel that these procedures are consistent with the requirements of applicable law. If these procedures were subject to a successful legal challenge, such votes would not be counted at the meeting. Your fund is unaware of any such challenge at this time. Contract Owners would be called at the phone number Putnam Management has in its records for their accounts (or that Putnam Management obtains from the Insurance Companies), and would be asked for their Social Security number or other identifying information. The Contract Owners would then be given an opportunity to give their instructions. To ensure that the Contract Owners’ instructions have been recorded correctly, they will also receive a confirmation of their instructions in the mail. A special toll-free number will be available in case the information contained in the confirmation is incorrect.
Contract Owner Instructions.Each Contract Owner is entitled to instruct his or her insurance company as to how to vote its shares and can do so by marking voting instructions on the ballot enclosed with this proxy statement and then signing, dating and mailing the ballot in the envelope provided. If a ballot is not marked to indicate voting instructions, but is signed, dated and returned, it will be treated as an instruction to vote the shares in favor of the proposal. Each Insurance Company will vote the shares for which it receives timely voting instructions from Contract Owners in accordance with those instructions and will vote those shares for which it receives no timely voting instructions for and against approval of a proposal, and as an abstention, in the same proportion as the shares for which it receives voting instructions. Shares attributable to accounts retained by each Insurance Company will be voted in the same propor tion as votes cast by Contract Owners. Accordingly, there are not expected to be any “broker non-votes.”
Contract Owners have the opportunity to submit their voting instructions via the Internet by utilizing a program provided by a third party vendor hired by Putnam Management or by automated telephone service. The giving of such voting instructions will not affect your right to vote in person should you decide to attend the meeting. To use the Internet, please access the Internet address listed on your proxy card, and follow the instructions on the Internet site. The Internet voting procedures are designed to authenticate ContractOwners’ identities, to allow Contract Owners to give their voting instructions and to confirm that their instructions have been recorded properly. Contract Owners voting via the Internet should understand that there may be costs associated with electronic access, such as usage charges from Internet access providers and telephone companies, that must be borne by the Contract Owners.
Your fund’s Trustees have adopted a general policy of maintaining confidentiality in the voting of proxies and the giving of voting instructions. Consistent with this policy, your fund may solicit proxies from Contract Owners who have not voted their shares or who have abstained from voting.
Revocation of instructions.Any Contract Owner giving instructions to an Insurance Company has the power to revoke such instructions by mail by providing superseding instructions. All properly executed instructions received in time for the meeting will be voted as specified in the instructions.
Revocation of proxies.Proxies, including proxies given by telephone or over the Internet, may be revoked at any time before they are voted either (i) by a written revocation received by the Clerk of your fund, (ii) by properly executing a later-dated proxy, (iii) by recording later-dated voting instructions by telephone or via the Internet, or (iv) by attending the meeting and voting in person.
Information for all Putnam funds other than the closed-end funds
Date for receipt of shareholders’ proposals for subsequent meetings of shareholders.Your fund does not regularly hold annual shareholder meetings, but may from time to time schedule special meetings. In addition, your fund has voluntarily undertaken to hold shareholder meetings at least every five years for the purpose of electing your fund’s Trustees; the last such meeting was held in 2004. In accordance with the regulations of the SEC, in order to be eligible for inclusion in the fund’s proxy statement for such a meeting, a shareholder or Contract Owner proposal must be received a reasonable time before the fund prints and mails its proxy statement.
The Board Policy and Nominating Committee of the Board of Trustees, which consists of Independent Trustees only, will also consider nominees recommended by shareholders of the fund to serve as Trustees. A shareholder or Contract Owner must submit the names of any such nominees in writing to
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the fund, to the attention of the Clerk, at the address of the principal offices of the fund.
If a shareholder who wishes to present a proposal at a special shareholder meeting fails to notify the fund within a reasonable time before the fund mails its proxy statement, the persons named as proxies will have discretionary authority to vote on the shareholder’s proposal if it is properly brought before the meeting. If a shareholder makes a timely notification, the proxies may still exercise discretionary voting authority under circumstances consistent with the SEC’s proxy rules. All shareholder proposals must also comply with other requirements of the SEC’s rules and the fund’s Agreement and Declaration of Trust.
Information for all Putnam closed-end funds
Date for receipt of shareholders’ proposals for the next annual meeting.It is currently anticipated that your fund’s next annual meeting of shareholders will be held in October 2007.the month/year indicated below:
Putnam California Investment Grade | |
Municipal Trust | October 2007 |
Putnam High Income Securities Fund | January 2008 |
Putnam High Yield Municipal Trust | October 2007 |
Putnam Investment Grade Municipal Trust | October 2007 |
Putnam Managed Municipal Income Trust | October 2007 |
Putnam Master Intermediate Income Trust | January 2008 |
Putnam Municipal Bond Fund | October 2007 |
Putnam Municipal Opportunities Trust | October 2007 |
Putnam New York Investment Grade | |
Municipal Trust | October 2007 |
Putnam Premier Income Trust | January 2008 |
Putnam Tax-Free Health Care Fund | October 2007 |
The Trustees of your fund reserve the right to set an earlier or later date offor the October 2007next meeting. Shareholder proposals to be included in the proxy statement for that meeting must be received by your fund on or before July 23, 2007 for Putnam High Income Securities Fund, Putnam Master Intermediate Income Trust and Putnam Premier Income Trust and May 18, 2007.2007 for the other closed-end funds identified above. In order for a shareholder proposal to be included in the proxy statement, both the submitting shareholder and the proposal itself must satisfy the requirements set forth in Rule 14a-8 under the Securities Exchange Act of 1934, Act.as amended. Shareholders who wish to make a proposal at the October 2007next annual meeting — other than one that will be included in the fund’s proxy materials — should—should notify the fund no later than October 6, 2007 for Putnam High Income Securities Fund, Putnam Master Intermediate Income Trust and Putnam Premier Income Trust and August 1, 2007.200 7 for the other closed-end funds identified above. Shareholders who wishwhowish to propose one or more nominees for election as Trustees, or to make a proposal fixing the number of Trustees, at the October 2007next annual meeting must provide written notice to the fund (including all required information) so that such notice is received in good order by the fund no earlier than October 13, 2007 and no later than November 12, 2007 for Putnam High Income Securities Fund, Putnam Master Intermediate Income Trust and Putnam Premier Income Trust and no earlier than August 1, 2007 and no later than August 31, 2007.2007 for the other closed-end funds identified above.
The Board Policy and Nominating Committee will also consider nominees recommended by shareholders of each fund to serve as Trustees. A shareholder must submit the names of any such nominees in writing to the fund, to the attention of the Clerk, at the address of the principal offices of the fund.
If a shareholder who wishes to present a proposal fails to notify the fund by the dates specified above, the proxies solicited for the meeting will have discretionary authority to vote on the shareholder’s proposal if it is properly brought before the meeting. If a shareholder makes a timely notification, the proxies may still exercise discretionary voting authority under circumstances consistent with the SEC’s proxy rules. All shareholder proposals must also comply with other requirements of the SEC’s rules and the fund’s Agreement and Declaration of Trust.
Information for all Putnam funds
Expenses of Solicitation.Persons holding shares as nominees will, upon request, be reimbursed for their reasonable expenses in soliciting instructions from their principals. The Putnam funds have retained Computershare Fund Services to aid in the solicitation of instructions for registered and nominee accounts. Computershare Fund Services’ fee (estimated to be approximately $3 million), as well as the other expenses of the preparation of proxy statements and related materials, including printing and delivery costs and the proxy solicitation expenses, are borne by Marsh & McLennan and Lifeco.
Adjournment.If sufficient votes in favor of any of the proposalsproposal set forth in the Notice of Annuala Special Meeting of Shareholders are not received by the time scheduled for the meeting or if the quorum required for the proposal has not been met, the persons named as proxies may propose adjournments of the special meeting for a period or periods of not more than 60 days in the aggregate to permit further solicitation of proxies. Any
17
adjournment will require the affirmative vote of a majority of the votes cast on the question in person or by proxy at the session of the Meetingmeeting to be adjourned. The persons named as proxies will vote in favor of adjournment those proxies that they are entitled to vote in favor of the proposals.proposal. They will vote against any such adjournment those proxies required to be voted against the proposals. Your fund pays the costs of any additional solicitation and of any adjourned session.proposal. Any proposalsproposal for which sufficient favorable votes have been received by the time of the meeting may be acted upon and considered final regardless of whether the meeting is adjourned to permit additional solicitation with respect to any other proposal.
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Duplicate mailings.As permitted by SEC rules, Putnam’s policy is to send a single copy of the proxy statement to shareholders who share the same last name and address, unless a shareholder previously has requested otherwise. Separate proxy ballots will be included with the proxy statement for each account registered at that address. If you would prefer to receive your own copy of the proxy statement, please contact Putnam Investor Services by phonecall our proxy information line at 1-800-225-1581 or by mail at P.O. Box 41203, Providence, Rhode Island 02940-1203.1-866-905-2396.
Financial information. Your fund’s Clerk will furnish to you, upon request and without charge, a copy of the fund’s Annual Reportannual report for its most recent fiscal year, and a copy of its semian-nualsemiannual report for any subsequent semiannual period. SuchYou may direct such requests may be directed to Putnam Investor Services, P.O. Box 41203, Providence, RI 02940-1203 or 1-800-225-1581.
* Fund Information
Putnam Investments.Putnam Investment Management, LLC, your fund’s investment manager and administrator, is a subsidiary of Putnam, LLC (Putnam Investments). Putnam Investments is a wholly-ownedwholly owned subsidiary of Putnam Investments Trust, a holding company that, except for a minority stake owned by employees, is in turn owned by Marsh & McLennan, Companies, Inc., a leading professional services firm that includes risk and insurance services, investment management and consulting businesses. Following the transaction described in this Proxy Statement, Putnam Investments Trust will be a wholly owned subsidiary of Great-West, as described above, and Power Corporation of Canada will be the ultimate parent company of Putnam Investment Management, LLC. Effective January 1, 2007, Putnam Management has delegated responsibility for providing certain administrative, pricing and bookkeeping services for the funds to State Street Bank and Trust Company.
The address of each of Putnam Investments Trust, Putnam Investments and Putnam Investment Management, LLC, is One Post Office Square, Boston, Massachusetts 02109. The address of the executive offices of Marsh & McLennan Companies, Inc. is 1166 Avenue of the Americas, New York, New York 10036. Charles E. Haldeman, Jr. is the President and Chief Executive Officer of Putnam Investments. His address is One Post Office Square, Boston, MAMassachusetts 02109.
The addresses of the Putnam companies and Mr. Haldeman are not expected to change following the completion of the transaction.
Putnam Management provides investment advisory services to other funds that may have investment objectives and policies similar to those of your fund. The table inAppendix Hidentifies these other funds and states their net assets and the management fees that they paid to Putnam Management during the fiscal years noted.
Putnam Investments Limited and The Putnam Advisory Company, LLC.Putnam Investments Limited, which has been retained by Putnam Investment Management, LLC as investment sub-adviser with respect to a portion of the assets of certain funds, is a stockholdersubsidiary of The Putnam Advisory Company, LLC, which is owned by Putnam Advisory Company LP, a subsidiary of Putnam Investments. Simon Davis, Co-Chief Investment Officer of Putnam’s
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International Core Equity investment team, is a director and the Chief Executive Officer of Putnam Investments Trust. On March 15, 2005,Limited. The other directors of Putnam Investments Trust granted Mr. Haldeman 210,635 shares of Class B Common Stock pursuant to theLimited, listed with their principal business occupations at Putnam Investments, Trust Equity Partnership Plan. With respectare David Puddle (Senior International Account Manager), Joseph T. Phoenix (Head of European Distribution), Jeffrey R. Peters (Head of International Business), and Anton Simon (Team Leader, European High Yield investment team). Putnam Advisory Company LP’s general partner is Putnam Advisory Company GP, Inc. Putnam Advisory Company GP, Inc. is a wholly owned subsidiary of Putnam Investments, which is also the sole limited partner of Putnam Advisory Company LP. The Putnam Advisory Company, LLC has also been retained to this grant, Mr. Haldeman’s shares vest overserve as a four-year period, with 25%sub-adviser for a portion of the shares vesting on each anniversaryassets of the grant, although vesting may be accelerated under certain circumstances if Mr. Haldeman’s employment with Putnam terminates. On September 29, 2005,International Equity Fund.
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Mr. Haldeman participated in the Putnam Option Exchange Program in which holdersThe address of eligible options to purchase Class B Common Stock were permitted to elect to exchange their options for restricted shares of Class B Common Stock with a value equal to the value of the exchanged options. Mr. Haldeman was granted 14,226 restricted shares of Class B Common Stock in exchange for an option to purchase 99,200 shares of Class B Common Stock. On March 15, 2006, Putnam Investments Trust grantedLimited, Mr. Haldeman 111,693 restricted sharesDavis, and each director of Class B Common Stock for his performance in 2005. With respect to such grant, Mr. Haldeman’s shares vest over a four-year period, with 25%Putnam Investments Limited is Cassini House, 57-59 St. James’s Street, London, England, SW1A 1LD. The address of the shares vesting on each anniversary of the grant. On March 15, 2006, Mr. Haldeman received an additional grant of 314,136 restricted shares of Class B Common StockThe Putnam Advisory Company, LLC, Putnam Advisory Company LP, and an option to purchase 510,638 shares as a special grant as a result of his employment contract with Marsh & McLennan Companies,Putnam Advisory Company GP, Inc. With respect to each 2006 grant, Mr. Haldeman’s shares vest 10%, 20%, 30% and 40% over the next 4 years, subject to acceleration provisions based on investment performance.is One Post Office Square, Boston, Massachusetts 02109.
Putnam Fiduciary Trust Company.Putnam Fiduciary Trust Company, the fund’s investor servicing agent and custodian, is a subsidiary of Putnam Investments. Its address is One Post Office Square, Boston, Massachusetts 02109. The funds have retained State Street Bank and Trust Company as custodian, and it is expected that Putnam Fiduciary Trust Company’s service as custodian will terminate during the first half of 2007 when all of the funds’ assets in its custody or the custody of its sub-custodians have been transferred into State Street Bank and Trust Company’s safekeeping.
ForPutnam Retail Management.Putnam Retail Management Limited Partnership, the fund’s principal underwriter (“PRM”), is a subsidiary of Putnam Investments. Putnam Retail Management GP, Inc. is the general partner of PRM, and also owns a minority stake in PRM. Putnam Retail Management GP, Inc. is a wholly owned subsidiary of Putnam Investments. The address of PRM and Putnam Retail Management GP, Inc. is One Post Office Square, Boston, Massachusetts 02109.
Payments to Putnam Management or its affiliates. Appendix Ishows amounts paid to Putnam Management or its affiliates during each fund’s most recent fiscal year for the services noted. The funds paidmade no other material payments to Putnam Fiduciary Trust Company aggregate fees as follows, in each case excluding custody credits and investor servicing credits:
Litigation.Exhibit B to this proxy statement describesManagement or its affiliates during the pending legal proceedings in which the Trustees have been named as parties adverse to some or all of your funds.periods shown.
Limitation of Trustee liability.Your fund’s Agreement and Declaration of Trust provides that the fund will indemnify its Trustees and officers against liabilities and expenses incurred in connection with litigation in which they may be involved because of their offices with the fund, except if it is
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determined in the manner specified in the Agreement and Declaration of Trust that they have not acted in good faith in the reasonable belief that their actions were in the best interests of the fund or that such indemnification would relieve any officer or Trustee of any liability to the fund or its shareholders arising by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of his or her duties. Your fund, at its expense, provides liability insurance for the benefit of its Trustees and officers.
Independent Registered Public Accounting Firm.As set forth in the table below, the Audit and Compliance Committee and the full Board of Trustees have selected PricewaterhouseCoopers LLP, 125 High Street, Boston, Massachusetts 02110, or KPMG LLP, 99 High Street, Boston, Massachusetts 02110, to serve as the independent registered public accounting firm for each fund’s current fiscal year.Representatives of PricewaterhouseCoopers LLP and KPMG LLP are expected to be present at the meeting of shareholders of the funds to make statements or to respond to appropriate questions.
The following table presents fees billed in each of the last two fiscal years for services rendered to each fund by the fund’s independent registered public accounting firm:
Audit- | All | |||
Audit | Related | Tax | Other | |
Fiscal year ended | Fees | Fees | Fees | Fees |
Putnam California Investment Grade Municipal Trust | ||||
(PricewaterhouseCoopers LLP) | ||||
April 30, 2006 | $46,594 | $28,050 | $5,086 | $5 |
April 30, 2005 | 38,142 | 26,478 | 5,101 | 0 |
Putnam High Yield Municipal Trust | ||||
(KPMG LLP) | ||||
March 31, 2006 | $34,592 | $22,100 | $4,192 | 0 |
March 31, 2005 | 34,550 | 20,900 | 4,150 | 0 |
Putnam Municipal Bond Fund | ||||
(PricewaterhouseCoopers LLP) | ||||
April 30, 2006 | $49,180 | $9,367 | $4,676 | $16 |
April 30, 2005 | 42,498 | 8,921 | 4,380 | 0 |
Putnam Municipal Opportunities Trust | ||||
(PricewaterhouseCoopers LLP) | ||||
April 30, 2006 | $43,383 | $22,525 | $4,916 | $14 |
April 30, 2005 | 37,859 | 21,263 | 4,318 | 0 |
Putnam New York Investment Grade Municipal Trust | ||||
(PricewaterhouseCoopers LLP) | ||||
April 30, 2006 | $45,815 | $28,050 | $5,324 | $3 |
April 30, 2005 | 39,378 | 26,478 | 5,074 | 0 |
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Audit Feesrepresents fees billed for the fund’s last two fiscal years.
Audit-Related Feesrepresents fees billed in the fund’s last two fiscal years for services traditionally performed by the fund’s auditor, including accounting consultation for proposed transactions or concerning financial accounting and reporting standards and other audit or attest services not required by statute or regulation.
Tax Feesrepresent fees billed in the fund’s last two fiscal years for tax compliance, tax planning and tax advice services. Tax planning and tax advice services include assistance with tax audits, employee benefit plans and requests for rulings or technical advice from taxing authorities.
All Other Fees represents fees billed for services relating to an analysis of recordkeeping fees.
The following table presents the amounts KPMG LLP orPricewaterhouseCoopers LLP billed for aggregate non-audit fees in each of the last two fiscal years to each fund, Putnam Management and any entity controlling, controlled by or under common control with Putnam Management that provides ongoing services to the fund:
Fiscal year ended
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Pre-Approval Policies of the Audit and ComplianceCommittee.The Audit and Compliance Committee has determined that all work performed for the funds by the funds’ independent auditors will be pre-approved by the Committee itself and thus will generally not be subject to pre-approval procedures.
The Audit and Compliance Committee also has adopted a policy to pre-approve the engagement by Putnam Management and certain of its affiliates of the funds’ independent auditors, even in circumstances where pre-approval is not required by applicable law. Any such requests by Putnam Management or certain of its affiliates are typically submitted in writing to the Committee and explain, among other things, the nature of the proposed engagement, the estimated fees and why this work should be performed by that particular audit firm as opposed to another one.
The table below presents the amounts billed by PricewaterhouseCoopers LLP to each fund other than Putnam High Yield Municipal Trust in the last two fiscal years for services that were required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X. No such services were provided to Putnam High Yield Municipal Trust in the last two fiscal years.
Audit- | All | ||
Related | Tax | Other | |
Fiscal year ended | Fees | Fees | Fees |
Putnam California Investment Grade Municipal Trust | |||
(PricewaterhouseCoopers LLP) | |||
April 30, 2006 | $0 | $98,160 | $0 |
April 30, 2005 | 0 | 0 | 0 |
Putnam New York Investment Grade Municipal Trust | |||
(PricewaterhouseCoopers LLP) | |||
April 30, 2006 | $0 | $98,160 | $0 |
April 30, 2005 | 0 | 0 | 0 |
Putnam Municipal Bond Fund | |||
(PricewaterhouseCoopers LLP) | |||
April 30, 2006 | $0 | $98,160 | $0 |
April 30, 2005 | 0 | 0 | 0 |
Putnam Municipal Opportunities Trust | |||
(PricewaterhouseCoopers LLP) | |||
April 30, 2006 | $0 | $98,160 | $0 |
April 30, 2005 | 0 | 0 | 0 |
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For purposes of this table,Tax Feesrepresents fees billed for advisory services relating to the impact of the American Jobs Creation Act of 2004.
The Audit and Compliance Committee of your fund has submitted the following report:
The Audit and Compliance Committee has reviewed and discussed with management of your fund the audited financial statements for the last fiscal year. The Audit and Compliance Committee has discussed with your fund’s independent auditors the matters required to be discussed by Statements on Auditing Standard No. 61 (SAS 61). SAS 61 requires independent auditors to communicate to the Audit and Pricing Committee matters including, if applicable: (1) methods used to account for significant unusual transactions; (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus; (3) the process used by management in formulating particularly sensitive accounting estimates and the basis for the auditor’s conclusions regarding the reasonableness of those estimates and (4) disagreements with management over the application of accounting principles and certain other matters. The Audit and Compliance Committee has received the written disclosures and the letter from your fund’s independent auditors required by the SEC’s Independence Standards Board Standard No. 1 (among other things, requiring auditors to make written disclosures to and discuss with the Audit and Compliance Committee various matters relating to the auditor’s independence), and has discussed with such accountants the independence of such accountants. Based on the foregoing review and discussions, the Audit and Compliance Committee recommended to the Trustees that the audited financial statements for the last fiscal year be included in your fund’s annual report to shareholders for the last fiscal year.
Robert E. Patterson (Chairperson)John A. HillW. Thomas Stephens
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Officers and other information.All of the officers of your fund, with the exception of George Putnam, III, the fund’s President, are employees of Putnam Management or its affiliates or serve on the staff of the Office of the Trustees. Because of their positions with Putnam Management or its affiliates or their ownership of stock of Marsh & McLennan, Companies, Inc., the parent corporation of Putnam Investments Trust and indirectly of Putnam Investments, Messrs. Haldeman and Putnam, III, as well as the other officers of your fund, except those who are employeesserve on the staff of Putnam Management or its affiliates,the Office of the Trustees, will benefit from the management fees, underwriting commissions,distribution fees, custodian fees, and investor servicing fees paid or allowed by theyour fund. In addition to Mr. Haldeman, certain of your fund’s executive officers (other than Mr. Putnam III,and those officers who are members of the Trustees’ independent administrative staff) own class B shares of Putnam Inves tments Trust or options to purchase class B shares and, accordingly, will benefit, pro rata with other holders of class B shares and options, from the payments to be made with respect to class B shares and options in connection with the transaction, as described above under “The Stock Purchase Agreement.” In addition to Mr. Putnam, the other officers of eachyour fund are as follows:
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Name, Year of birth, | Year first elected | |
Office with the fund | to office | Business experience during past 5 years |
Charles E. Porter (Born 1938)* | 1989 | Executive Vice President, Associate Treasurer, |
Executive Vice President, | Associate Treasurer, | |
Principal Executive Officer and Compliance Liaison, | ||
Principal Executive Officer and | ||
Compliance Liaison | ||
Jonathan S. Horwitz (Born 1955)* | 2004 | Senior Vice President and Treasurer, The Putnam Funds. |
Senior Vice President and Treasurer | ||
Investments | ||
Steven D. Krichmar (Born 1958) | 2002 | Senior Managing Director, Putnam Investments |
Vice President and Principal | ||
Financial | ||
Janet C. Smith (Born 1965) | 2006 | Managing Director, Putnam Investments |
Vice President, Assistant Treasurer and | ||
Principal Accounting Officer | ||
Susan G. Malloy (Born 1957) | 2007 | Managing Director, Putnam Investments |
Vice President and Assistant Treasurer | ||
Beth Mazor (Born 1958) | 2002 | Managing Director, Putnam Investments |
Vice President | ||
Robert R. Leveille (Born 1969) | 2007 | Managing Director, Putnam Investments. |
Chief Compliance Officer | Prior to 2005, Mr. Leveille was a member of Bell Boyd & | |
Lloyd LLC, and prior to 2003 he was Vice President and | ||
Senior Counsel of Liberty Funds Group LLC | ||
Mark C. Trenchard (Born 1962) | 2002 | Managing Director, Putnam Investments |
Vice President and | ||
BSA Compliance |
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Francis J. McNamara, III (Born 1955) | 2004 | Senior Managing Director, Putnam Investments, Putnam | ||
Vice President and Chief Legal Officer | Management and Putnam | |||
James P. Pappas (Born 1953) | 2004 | Managing Director, Putnam Investments and Putnam | ||
Vice President | ||||
During 2002, Mr. Pappas | ||||
was Chief Operating | ||||
Officer of Atalanta/Sosnoff | ||||
Management | ||||
Richard S. Robie III (Born 1960) | 2004 | Senior Managing Director, Putnam Investments, Putnam | ||
Vice President | Management and Putnam | |||
was Senior Vice President | ||||
of United Asset | ||||
Management | ||||
Judith Cohen (Born 1945)* | 1993 | |||
Vice President, Assistant Treasurer and Clerk | ||||
Wanda M. McManus (Born 1947)* | 1993 | Vice President, Senior Associate Treasurer and Assistant | ||
Vice President, Senior Associate | ||||
Treasurer and | ||||
Assistant Clerk | ||||
Nancy E. Florek (Born 1957)* | 2000 | Vice President, Assistant Clerk, Assistant Treasurer and | ||
Vice President, Assistant Clerk, | ||||
Assistant Treasurer | ||||
and Proxy | ||||
* Officers of each fund who are members of the Trustees’ independent administrative staff.
Compensation for these individuals is fixed by the Trustees and reimbursed to Putnam Management.
875% Beneficial Ownership.As of February 9, 2007, to the knowledge of the funds, no person other than those listed onAppendix Jowned beneficially or of record 5% or more of any class of shares of any Putnam fund.
Security Ownership.As of February 9, 2007, the Trustees, and the officers and Trustees of each fund as a group, owned less than 1% of the outstanding shares of each class of each fund except as listed onAppendix K.
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APPENDIX A | ||||||||||
Number of Shares Outstanding as of the Record Date | ||||||||||
Putnam Asset | ||||||||||
Putnam American | Putnam Asset | Allocation: | Putnam Asset | |||||||
Government Income | Allocation: | Conservative | Allocation: Growth | Putnam Capital | ||||||
Fund | Balanced Portfolio | Portfolio | Portfolio | Appreciation Fund | ||||||
Class A | 72,865,917.27 | 122,021,755.62 | 47,747,383.07 | 100,864,116.97 | 23,291,938.06 | |||||
Class B | 4,095,758.65 | 27,095,823.41 | 8,791,276.89 | 29,394,656.54 | 3,940,639.05 | |||||
Class C | 362,334.96 | 11,729,075.16 | 5,120,056.82 | 13,646,674.87 | 179,529.90 | |||||
Class M | 236,179.16 | 3,007,196.12 | 1,235,844.52 | 3,232,356.68 | 609,599.30 | |||||
Class R | 6,441.77 | 853,748.29 | 119,787.08 | 557,535.69 | 4,600.00 | |||||
Class Y | 1,063,530.67 | 15,411,460.24 | 42,115,185.82 | 13,223,656.09 | 315,127.63 | |||||
Putnam Convertible | ||||||||||
Putnam Capital | Putnam Classic | Income-Growth | Putnam Discovery | Putnam Diversified | ||||||
Opportunities Fund | Equity Fund | Trust | Growth Fund | Income Trust | ||||||
Class A | 41,144,555.26 | 40,595,267.65 | 31,968,799.11 | 25,551,820.26 | 139,369,157.64 | |||||
Class B | 16,110,795.73 | 6,418,041.89 | 2,367,171.39 | 12,721,621.79 | 24,961,695.71 | |||||
Class C | 2,973,737.56 | 958,815.98 | 1,299,400.49 | 1,681,471.19 | 11,650,294.58 | |||||
Class M | 1,398,979.57 | 1,797,409.53 | 299,922.75 | 1,033,939.84 | 92,776,999.34 | |||||
Class R | 168,102.38 | 2,505.14 | 60,139.09 | 4,130.84 | 88,080.49 | |||||
Class Y | 35,099,403.26 | 363,824.44 | 1,250,837.29 | 503,794.69 | 1,672,006.89 | |||||
The Putnam Fund | The George | |||||||||
Putnam Equity | Putnam Europe | Putnam Floating | for Growth and | Putnam Fund | ||||||
Income Fund | Equity Fund | Rate Income Fund | Income | of Boston | ||||||
Class A | 157,072,443.43 | 14,295,888.85 | 34,069,160.51 | 590,338,882.88 | 179,832,180.65 | |||||
Class B | 33,001,131.13 | 3,350,256.99 | 2,824,206.00 | 76,125,642.11 | 29,622,989.85 | |||||
Class C | 5,571,878.88 | 207,893.51 | 11,254,351.86 | 4,697,759.79 | 3,994,179.41 | |||||
Class M | 3,213,892.88 | 455,266.90 | 738,028.33 | 5,300,544.50 | 10,393,510.94 | |||||
Class R | 303,161.43 | 1,904.31 | 34,919.15 | 73,707.25 | 103,827.17 | |||||
Class Y | 16,061,796.95 | 319,432.06 | 340,886.00 | 66,351,947.61 | 21,384,284.28 | |||||
Putnam Global | ||||||||||
Putnam Global | Putnam Global | Natural Resources | Putnam Growth | Putnam Health | ||||||
Equity Fund | Income Trust | Fund | Opportunities Fund | Sciences Trust | ||||||
Class A | 154,095,635.81 | 7,060,947.13 | 15,653,346.61 | 24,472,157.80 | 28,927,487.92 | |||||
Class B | 28,419,243.30 | 1,108,506.86 | 3,780,138.75 | 17,073,607.94 | 8,272,662.98 | |||||
Class C | 3,074,350.64 | 245,341.53 | 772,968.28 | 1,824,836.37 | 657,779.60 | |||||
Class M | 2,926,058.67 | 1,690,461.95 | 262,426.52 | 647,345.53 | 443,866.41 | |||||
Class R | 119,295.63 | 12,140.40 | 92,955.50 | 7,262.60 | 13,921.65 | |||||
Class Y | 2,448,854.15 | 223,906.67 | 478,806.42 | 538,692.91 | 342,128.20 | |||||
A-1
Putnam High | Putnam International | |||||||||
Putnam High | Yield Advantage | Putnam | Putnam Income | Capital | ||||||
Yield Trust | Fund | Income Fund | Strategies Fund | Opportunities Fund | ||||||
Class A | 214,263,626.27 | 69,047,167.80 | 115,132,837.04 | 1,128,943.13 | 30,841,820.87 | |||||
Class B | 35,526,881.29 | 2,410,648.64 | 20,851,564.20 | 90,473.73 | 12,129,431.30 | |||||
Class C | 8,003,654.20 | — | 3,145,332.50 | 96,387.62 | 2,546,743.45 | |||||
Class M | 2,458,597.49 | 53,420,283.75 | 45,251,242.49 | 14,762.21 | 714,683.60 | |||||
Class R | 102,530.40 | — | 125,183.77 | 100.16 | 75,238.94 | |||||
Class Y | 27,378,744.87 | 1,706,106.72 | 177,258,302.83 | 9,840.89 | 2,206,407.37 | |||||
Putnam Limited | ||||||||||
Putnam International | Putnam International | Duration | ||||||||
Putnam International | Growth and Income | New Opportunities | Putnam Investors | Government | ||||||
Equity Fund | Fund | Fund | Fund | Income Fund | ||||||
Class A | 123,963,180.92 | 50,293,708.97 | 36,675,349.61 | 161,312,146.48 | 38,927,862.63 | |||||
Class B | 35,642,093.03 | 11,670,009.22 | 7,681,747.98 | 52,883,910.68 | 12,128,138.57 | |||||
Class C | 9,131,139.27 | 2,768,235.99 | 1,062,278.46 | 4,820,801.43 | 2,175,900.36 | |||||
Class M | 3,010,273.49 | 1,315,109.74 | 1,170,698.61 | 3,005,098.49 | 1,132,429.82 | |||||
Class R | 160,950.77 | 90,049.40 | 23,974.60 | 92,867.49 | 43,311.30 | |||||
Class Y | 45,254,449.85 | 1,076,267.48 | 1,072,479.47 | 44,422,070.60 | 31,983,627.46 | |||||
Putnam OTC & | ||||||||||
Putnam Mid Cap | Putnam Money | Putnam New | Putnam New Value | Emerging Growth | ||||||
Value Fund | Market Fund | Opportunities Fund | Fund | Fund | ||||||
Class A | 42,398,349.46 | 2,920,948,710.35 | 70,262,928.78 | 73,155,533.01 | 54,395,541.91 | |||||
Class B | 15,750,043.79 | 142,836,931.51 | 11,901,149.73 | 21,337,273.64 | 15,771,750.32 | |||||
Class C | 2,856,353.83 | 12,307,784.09 | 783,189.79 | 3,730,447.21 | 1,502,590.14 | |||||
Class M | 950,669.79 | 39,596,481.71 | 1,559,344.08 | 1,769,378.85 | 1,711,144.83 | |||||
Class R | 358,284.53 | 150,481,386.65 | 33,000.80 | 132,420.91 | 18,653.35 | |||||
Class Y | 3,179,712.07 | — | 8,117,183.90 | 6,731,154.03 | 5,087,917.45 | |||||
Class T | — | 12,617,909.46 | — | — | — | |||||
Putnam | Putnam | Putnam | Putnam | |||||||
Putnam Research | RetirementReady | RetirementReady | RetirementReady | RetirementReady | ||||||
Fund | 2010 Fund | 2015 Fund | 2020 Fund | 2025 Fund | ||||||
Class A | 29,333,675.54 | 772,059.93 | 1,379,501.57 | 1,448,305.47 | 994,647.77 | |||||
Class B | 12,711,374.91 | 4,850.05 | 10,873.85 | 10,633.05 | 13,267.72 | |||||
Class C | 1,885,836.25 | 1,102.42 | 3,558.28 | 2,146.66 | 1,941.72 | |||||
Class M | 791,134.38 | 2,420.50 | 2,423.71 | 8,512.45 | 4,131.13 | |||||
Class R | 14,534.57 | 3,875.65 | 314.02 | 2,350.70 | 2,078.75 | |||||
Class Y | 4,634,275.19 | 513,407.69 | 820,883.78 | 818,743.23 | 749,421.25 | |||||
Putnam | Putnam | Putnam | Putnam | Putnam | ||||||
RetirementReady | RetirementReady | RetirementReady | RetirementReady | RetirementReady | ||||||
2030 Fund | 2035 Fund | 2040 Fund | 2045 Fund | 2050 Fund | ||||||
Class A | 809,425.85 | 566,560.46 | 391,380.39 | 287,756.96 | 116,641.82 | |||||
Class B | 7,977.02 | 5,877.96 | 2,850.44 | 1,639.00 | 1,972.60 | |||||
Class C | 573.73 | 742.94 | 46.78 | 157.30 | 21.00 | |||||
Class M | 10,372.28 | 754.72 | 555.24 | 86.18 | 35.43 | |||||
Class R | 1,983.89 | 1,915.49 | 1,081.03 | 1,046.90 | 426.49 | |||||
Class Y | 511,624.43 | 338,614.85 | 178,952.65 | 160,734.47 | 39,744.66 | |||||
A-2
Putnam | Putnam U.S. | Putnam Utilities | ||||||||
RetirementReady | Putnam Small Cap | Putnam Small Cap | Government Income | Growth and Income | ||||||
Maturity Fund | Growth Fund | Value Fund | Trust | Fund | ||||||
Class A | 550,439.44 | 16,375,506.50 | 31,283,523.74 | 78,006,578.08 | 39,927,098.75 | |||||
Class B | 2,724.81 | 2,656,018.65 | 10,093,908.96 | 8,655,212.62 | 4,317,531.32 | |||||
Class C | 474.19 | 959,519.89 | 2,554,124.15 | 1,130,838.12 | 341,742.96 | |||||
Class M | 1,627.45 | 245,623.25 | 459,286.92 | 2,267,956.64 | 252,063.21 | |||||
Class R | 1,238.44 | 466,903.37 | — | 43,309.22 | 27,999.29 | |||||
Class Y | 169,708.41 | 1,459,510.41 | 2,766,584.83 | 338,769.86 | 311,707.26 | |||||
Putnam AMT-Free | Putnam Arizona Tax | Putnam California | ||||||||
Putnam | Putnam Voyager | Insured Municipal | Exempt Income | Tax Exempt | ||||||
Vista Fund | Fund | Fund | Fund | Income Fund | ||||||
Class A | 151,064,499.09 | 291,430,571.94 | 18,164,565.16 | 8,358,332.18 | 235,644,823.67 | |||||
Class B | 32,381,052.41 | 58,735,359.33 | 3,055,201.22 | 1,010,192.63 | 12,778,779.68 | |||||
Class C | 3,525,231.81 | 3,878,871.97 | 568,917.59 | 1,098.02 | 2,652,011.94 | |||||
Class M | 2,619,218.03 | 3,275,589.42 | 72,405.24 | 147,218.49 | 699,584.22 | |||||
Class R | 173,844.08 | 112,440.10 | — | — | — | |||||
Class Y | 16,103,511.27 | 76,680,967.17 | — | — | — | |||||
Putnam | ||||||||||
Massachusetts Tax | Putnam Michigan | Putnam Minnesota | Putnam New Jersey | Putnam New York | ||||||
Exempt Income | Tax Exempt Income | Tax Exempt Income | Tax Exempt Income | Tax Exempt Income | ||||||
Fund | Fund | Fund | Fund | Fund | ||||||
Class A | 26,215,513.73 | 11,101,453.78 | 10,283,132.58 | 17,161,743.73 | 124,340,641.84 | |||||
Class B | 4,497,397.65 | 1,707,679.47 | 1,736,026.54 | 4,416,716.50 | 6,751,493.68 | |||||
Class C | 463,345.14 | 3,761.57 | 1,125.02 | 6,527.34 | 1,277,948.82 | |||||
Class M | 493,447.04 | 140,497.62 | 75,805.52 | 167,636.44 | 268,803.79 | |||||
Putnam | ||||||||||
Putnam Ohio Tax | Pennsylvania Tax | |||||||||
Exempt Income | Exempt Income | Putnam Tax Exempt | Putnam Tax-Free | Putnam Tax Smart | ||||||
Fund | Fund | Income Fund | High Yield Fund | Equity Fund® | ||||||
Class A | 15,904,859.33 | 15,390,981.58 | 128,599,352.45 | 97,257,670.60 | 11,859,823.99 | |||||
Class B | 1,681,836.61 | 2,742,974.10 | 4,412,867.57 | 10,465,862.02 | 8,024,033.79 | |||||
Class C | 4,251.19 | 34,127.68 | 1,008,936.24 | 1,567,885.51 | 2,822,106.04 | |||||
Class M | 145,110.14 | 253,222.15 | 569,148.43 | 879,537.00 | 329,185.89 | |||||
Putnam Prime | Putnam Tax Exempt | |||||||||
Money Market Fund | Money Market Fund | |||||||||
Class A | 1,091.28 | Class A | 80,627,090.07 | |||||||
Class I | 2,136,089,094.67 | |||||||||
Class P | 2,455,425,894.00 | |||||||||
Class R | 1,084.04 | |||||||||
Class S | 1,095.41 | |||||||||
Putnam California | Putnam Investment | |||||||||
Investment Grade | Putnam High Income | Putnam High Yield | Grade Municipal | |||||||
Municipal Trust | Securities Fund | Municipal Trust | Trust | |||||||
Common | 4,517,546.20 | 21,546,985.27 | 21,131,981.15 | 20,235,386.57 | ||||||
Preferred | 320.00 | — | 900.00 | 1,400.00 | ||||||
A-3
Putnam Master | Putnam New York | |||||||||
Intermediate Income | Investment Grade | Putnam Premier | Putnam Tax-Free | |||||||
Trust | Municipal Trust | Income Trust | Health Care Fund | |||||||
Common | 91,389,179.63 | 2,775,583.20 | 178,799,200.45 | 13,435,771.46 | ||||||
Preferred | — | 200.00 | — | — | ||||||
Putnam Managed | ||||||||||
Municipal Income | Putnam Municipal | Putnam Municipal | ||||||||
Trust | Bond Fund | Opportunities Trust | ||||||||
Common | 44,658,877.70 | 16,784,709.41 | 15,172,510.20 | |||||||
Series A Preferred | 550.00 | 2,920.00 | 800.00 | |||||||
Series B Preferred | 550.00 | 2,400.00 | 1,620.00 | |||||||
Series C Preferred | 650.00 | — | 1,620.00 | |||||||
Putnam VT | ||||||||||
American | Putnam VT | Putnam VT | ||||||||
Government | Putnam VT Capital | Putnam VT Capital | Discovery Growth | Diversified Income | ||||||
Income Fund | Appreciation Fund | Opportunities Fund | Fund | Fund | ||||||
Class IA | 7,067,352.30 | 2,922,895.64 | 1,571,121.84 | 1,860,663.81 | 32,042,509.43 | |||||
Class IB | 5,643,928.66 | 2,343,331.93 | 1,303,057.65 | 4,177,181.16 | 21,961,115.93 | |||||
Putnam VT The | Putnam VT Global | |||||||||
Putnam VT Equity | George Putnam Fund | Asset Allocation | Putnam VT Global | Putnam VT Growth | ||||||
Income Fund | of Boston | Fund | Equity Fund | and Income Fund | ||||||
Class IA | 8,276,290.10 | 24,852,762.65 | 18,531,543.55 | 37,648,893.62 | 108,760,571.76 | |||||
Class IB | 7,151,770.71 | 22,860,556.96 | 5,449,017.93 | 5,641,156.26 | 26,283,390.89 | |||||
Putnam VT | ||||||||||
Putnam VT Growth | Putnam VT Health | Putnam VT | Putnam VT | International Equity | ||||||
Opportunities Fund | Sciences Fund | High Yield Fund | Income Fund | Fund | ||||||
Class IA | 3,933,806.14 | 8,113,723.80 | 52,822,019.32 | 33,494,430.97 | 19,428,381.26 | |||||
Class IB | 5,444,573.65 | 11,040,152.95 | 21,393,548.76 | 23,725,014.48 | 41,720,259.80 | |||||
Putnam VT | Putnam VT | |||||||||
International Growth | International New | Putnam VT | Putnam VT Mid Cap | Putnam VT Money | ||||||
and Income Fund | Opportunities Fund | Investors Fund | Value Fund | Market Fund | ||||||
Class IA | 16,477,887.45 | 6,289,256.68 | 20,363,311.31 | 3,598,840.41 | 199,471,422.59 | |||||
Class IB | 7,020,219.95 | 9,079,615.87 | 19,002,910.36 | 1,762,566.50 | 192,517,577.58 | |||||
Putnam VT OTC & | ||||||||||
Putnam VT New | Putnam VT New | Emerging Growth | Putnam VT Research | Putnam VT Small | ||||||
Opportunities Fund | Value Fund | Fund | Fund | Cap Value Fund | ||||||
Class IA | 54,242,526.61 | 20,229,842.20 | 5,758,192.19 | 5,328,590.92 | 9,913,500.45 | |||||
Class IB | 7,086,946.71 | 16,084,839.46 | 4,822,512.27 | 7,780,017.61 | 30,338,512.99 | |||||
Putnam VT Utilities | ||||||||||
Growth and Income | Putnam VT | Putnam VT | ||||||||
Fund | Vista Fund | Voyager Fund | ||||||||
Class IA | 17,556,287.34 | 11,847,214.18 | 45,658,943.22 | |||||||
Class IB | 3,446,135.67 | 15,577,482.04 | 13,591,095.47 | |||||||
A-4
APPENDIX B
Form of New Management Contract
This Management Contract is dated as of ____________, 2007 between [NAME OF FUND], a Massachusetts business trust (the “Fund”), and PUTNAM INVESTMENT MANAGEMENT, LLC, a Delaware limited liability company (the “Manager”).
In consideration of the mutual covenants herein contained, it is agreed as follows:
1. SERVICES TO BE RENDERED BY MANAGERTO FUND.
(a) The Manager, at its expense, will furnish continuously an investment program for the Fund or, in the case of a Fund that has divided its shares into two or more series under Section 18(f)(2) of the Investment Company Act of 1940, as amended (the “1940 Act”), each series of the Fund identified from time to time on Schedule A to this Contract (each reference in this Contract to “a Fund” or to “the Fund” is also deemed to be a reference to any existing series of the Fund, as appropriate in the particular context), will determine what investments will be purchased, held, sold or exchanged by the Fund and what portion, if any, of the assets of the Fund will be held uninvested and will, on behalf of the Fund, make changes in such investments. Subject always to the control of the Trustees of the Fund and except for the functions carried out by the officers and personnel referred to in Section 1(d), the Manager will also manage, supervise and co nduct the other affairs and business of the Fund and matters incidental thereto. In the performance of its duties, the Manager will comply with the provisions of the Agreement and Declaration of Trust and By-Laws of the Fund and the stated investment objectives, policies and restrictions of the Fund, will use its best efforts to safeguard and promote the welfare of the Fund and to comply with other policies which the Trustees may from time to time determine and will exercise the same care and diligence expected of the Trustees.
(b) The Manager, at its expense, except as such expense is paid by the Fund as provided in Section 1(d), will furnish (1) all necessary investment and management facilities, including salaries of personnel, required for it to execute its duties faithfully; (2) suitable office space for the Fund; and (3) administrative facilities, including bookkeeping, clerical personnel and equipment necessary for the efficient conduct ofthe affairs of the Fund, including determination of the net asset value of the Fund, but excluding shareholder accounting services. Except as otherwise provided in Section 1(d), the Manager will pay the compensation, if any, of the officers of the Fund.
(c) The Manager, at its expense, will place all orders for the purchase and sale of portfolio investments for the Fund’s account with brokers or dealers selected by the Manager. In the selection of such brokers or dealers and the placing of such orders, the Manager will use its best efforts to obtain for the Fund the most favorable price and execution available, except to the extent it may be permitted to pay higher brokerage commissions for brokerage and research services as described below. In using its best efforts to obtain for the Fund the most favorable price and execution available, the Manager, bearing in mind the Fund’s best interests at all times, will consider all factors it deems relevant, including by way of illustration, price, the size of the transaction, the nature of the market for the security, the amount of the commission, the timing of the transaction taking into account market prices and trends, the reputation, experience and financial stab ility of the broker or dealer involved and the quality of service rendered by the broker or dealer in other transactions. Subject to such policies as the Trustees of the Fund may determine, the Manager will not be deemed to have acted unlawfully or to have breached any duty created by this Contract or otherwise solely by reason of its having caused the Fund to pay a broker or dealer that provides brokerage and research services to the Manager an amount of commission for effecting a portfolio investment transaction in excess of the amount of commission another broker or dealer would have charged for effecting that transaction, if the Manager determines in good faith that such amount of commission was reasonable in relation to the value of the brokerage and research services provided by such broker or dealer, viewed in terms of either that particular transaction or the Manager’s overall responsibilities with respect to the Fund and to other clients of the Manager as to which the Manager exercises investme nt discretion. The Manager agrees that in connection with purchases or sales of portfolio investments for the Fund’s account, neither the Manager nor any officer, director, employee or agent of the Manager shall act as a principal or receive any commission other than as provided in Section 3.
B-1
(d) The Fund will pay or reimburse the Manager for the compensation in whole or in part of such officers of the Fund and persons assisting them as may be determined from time to time by the Trustees of the Fund. The Fund will also pay or reimburse the Manager for all or part of the cost of suitable office space, utilities, support services and equipment attributable to such officers and persons as may be determined in each case by the Trustees of the Fund. The Fund will pay the fees, if any, of the Trustees of the Fund.
(e) The Manager will not be obligated to pay any expenses of or for the Fund not expressly assumed by the Manager pursuant to this Section 1 other than as provided in Section 3.
(f) Subject to the prior approval of a majority of the Trustees, including a majority of the Trustees who are not “interested persons” and, to the extent required by the 1940 Act and the rules and regulations under the 1940 Act, subject to any applicable guidance or interpretation of the Securities Exchange Commission or its staff, by the shareholders of the Fund, the Manager may, from time to time, delegate to a sub-adviser or sub-administrator any of the Manager’s duties under this Contract, including the management of all or a portion of the assets being managed. In all instances, however, the Manager must oversee the provision of delegated services, the Manager must bear the separate costs of employing any sub-adviser or sub-administrator, and no delegation will relieve the Manager of any of its obligations under this Contract.
2. OTHER AGREEMENTS, ETC.
It is understood that any of the shareholders, Trustees, officers and employees of the Fund may be a shareholder, director, officer or employee of, or be otherwise interested in, the Manager, and in any person controlled by or under common control with the Manager, and that the Manager and any person controlled by or under common control with the Manager may have an interest in the Fund. It is also understood that the Manager and any person controlled by or under common control with the Manager may have advisory, management, service or other contracts with otherorganizations and persons and may have other interests and business.
3. COMPENSATION TO BE PAID BY THE FUND TO THE MANAGER.
The Fund will pay to the Manager as compensation for the Manager’s services rendered, for the facilities furnished and for the expenses borne by the Manager pursuant to paragraphs (a), (b), and (c) of Section 1, a fee, based on the Fund’s Average Net Assets, computed and paid [monthly/quarterly]1at the annual rates set forth on Schedule B attached to this Contract, as from time to time amended.
[This paragraph included for all funds except closed-end funds] “Average Net Assets” means the average of all of the determinations of the Fund’s net asset value at the close of business on each business day during each [month/quarter] while this Contract is in effect. The fee is payable for each [month/quarter] within [15/30]2days after the close of the [month/quarter].
[This paragraph included for Putnam California Investment Grade Municipal Trust, Putnam High Yield Municipal Trust, Putnam Investment Grade Municipal Trust, Putnam Managed Municipal Income Trust, Putnam Municipal Bond Fund, Putnam Municipal Opportunities Trust, and Putnam New York Investment Grade Municipal Trust only] “Average Net Assets” means the average of all of the determinations of the Fund’s net asset value during each quarter at the close of business on the last business day of each week, for each week which ends during the quarter. The fee is payable for each quarter within 30 days after the close of the quarter.
[This paragraph included for Putnam High Income Securities Fund, Putnam Master Intermediate Income Trust, and Putnam Premier Income Trust only] “Average Net Assets” means the average of the weekly determinations of the difference between the total assets of the Fund (including any assets attributable to leverage for investment purposes) and the total liabilities of the Fund (excluding liabilities incurred in connection with leverage for investment purposes), determined at the close of the last business day of each
1Fees are computed and paidmonthlyfor Putnam AMT-Free Insured Municipal Fund, Putnam Floating Rate Income Fund, Putnam Global Equity Fund, Putnam Income Strategies Fund, Putnam OTC & Emerging Growth Fund, Putnam Prime Money Market Fund, Putnam RetirementReady 2050 Fund, Putnam RetirementReady 2045 Fund, Putnam RetirementReady 2040 Fund, Putnam RetirementReady 2035 Fund, Putnam RetirementReady 2030 Fund, Putnam RetirementReady 2025 Fund, Putnam RetirementReady 2020 Fund, Putnam RetirementReady 2015 Fund, Putnam RetirementReady 2010 Fund, Putnam RetirementReady Maturity Fund, Putnam Tax-Free High Yield Fund, Putnam VT Capital Appreciation Fund, Putnam VT Capital Opportunities Fund, Putnam VT Discovery Growth Fund, Putnam VT Equity Income Fund, and Putnam VT Mid Cap Value Fund. For all other Putnam funds, fees are computed and paidquarterly.
2Fees are payable within15days after the close of the month for Putnam AMT-Free Insured Municipal Fund, Putnam Income Strategies Fund, Putnam Prime Money Market Fund, and Putnam Tax-Free High Yield Fund. Fees are payable within30days after the close of the month or quarter, as applicable, for all other Putnam funds.
B-2
week, for each week which ends during the quarter. The fee is payable for each quarter within 30 days after the close of the quarter. As used in this Section 3, “leverage for investment purposes” means any incurrence of indebtedness the proceeds of which are to be invested in accordance with the Fund’s investment objective. For purposes of calculating Average Net Assets, liabilities associated with any instruments or transactions used to leverage the Fund’s portfolio for investment purposes (whether or not such instruments or transactions are “covered” within the meaning of the 1940 Act and the rules and regulations thereunder, giving effect to any interpretations of the Securities and Exchange Commission and its staff) are not considered liabilities. For purposes of calculating Average Net Assets, the total assets of the Fund will be deemed to include (a) any proceeds from the sale or transfer of an asset (the “Underlying Asset”) of the Fund to a counterparty in a reverse repurchase or dollar roll transaction and (b) the value of such Underlying Asset as of the relevant measuring date.
[This paragraph included for Putnam Tax-Free Health Care Fund only] “Average Net Assets” means the average of the weekly determinations of the difference between the total assets of the Fund (including any assets attributable to leverage for investment purposes) and the total liabilities of the Fund (excluding liabilities incurred in connection with leverage for investment purposes), determined at the close of the last business day of each week, for each week which ends during the quarter. The fee is payable for each quarter within 30 days after the close of the quarter. As used in this Section 3, “leverage for investment purposes” means any incurrence of indebtedness or issuance of Preferred Shares (as defined below), the proceeds of which are to be invested in accordance with the Fund’s investment objective. For purposes of calculating Average Net Assets, neither the liquidati on preference of any Preferred Shares nor any liabilities associated with any instruments or transactions used to leverage the Fund’s portfolio for investment purposes (whether or not such instruments or transactions are “covered” within the meaning of the 1940 Act and the rules and regulations thereunder, giving effect to any interpretations of the Securities and Exchange Commission and its staff), is considered a liability. For purposes of calculating Average Net Assets, the total assets of the Fund will be deemed to include (a) any proceeds from the sale or transfer of an asset (the “Underlying Asset”) of the Fund to a counterparty in a reverserepurchase or dollar roll transaction and (b) the value of such Underlying Asset as of the relevant measuring date.
[This paragraph included for Putnam California Investment Grade Municipal Trust, Putnam High Yield Municipal Trust, Putnam Investment Grade Municipal Trust, Putnam Managed Municipal Income Trust, Putnam Municipal Bond Fund, Putnam Municipal Opportunities Trust, and Putnam New York Investment Grade Municipal Trust only] In the event that the amount of dividends payable with respect to any outstanding shares of beneficial interest of the Fund with preference rights (“Preferred Shares”) during any period for which regular payments of dividends or other distributions on such Preferred Shares are payable (each, a “Dividend Period”) plus expenses attributable to such Preferred Shares for such Dividend Period exceeds the portion of the Fund’s net income and net short-term capital gains (but not long-term capital gains) accruing during such Dividend Period as a result of the fact that s uch Preferred Shares were outstanding during such Period, then the fee payable to the Manager pursuant to this Section 3 shall be reduced by the amount of such excess; provided, however, that the amount of such reduction for any such Period shall not exceed the amount determined by multiplying (i) the aggregate liquidation preference of the average number of Preferred Shares outstanding during the Period by (ii) the percentage of the aggregate net asset value of the Fund which the fee payable to the Manager during such Period pursuant to this Section 3 would constitute without giving effect to such reduction. The amount of such reduction attributable to any Dividend Period shall reduce the amount of the next quarterly payment of the fee payable pursuant to this Section 3 following the end of such Dividend Period, and of any subsequent quarterly or more frequent payments, as may be necessary. The expenses attributable to the Preferred Shares and the portion of the Fund’s net income and net short-term cap ital gains accruing during any Dividend Period as a result of the fact that Preferred Shares were outstanding during such Period shall be determined by the Trustees of the Fund.
[For Putnam High Income Securities Fund, Putnam Master Intermediate Income Trust, and Putnam Premier Income Trust only] In the event that, during any period for which payments of interest or fees (whether designated as such or implied) are payable in connection with any indebtedness or other obligation of the Fund incurred for investment purposes
B-3
(a “Measurement Period”), the amount of interest payments and fees with respect to such indebtedness or other obligation, plus additional expenses attributable to any such leverage for investment purposes for such Measurement Period, exceeds the portion of the Fund’s net income and net short-term capital gains (but not long-term capital gains) accruing during such Measurement Period as a result of the fact that such indebtedness or other obligation was outstanding during the Measurement Period, then the fee payable to the Manager pursuant to this Section 3 shall be reduced by the amount of such excess; provided, however, that the amount of such reduction for any such Period shall not exceed the amount determined by multiplying (i) the aggregate value of all assets representing leverage for investment purposes by (ii) the percentage of the Average Net Assets of the Fund which the fee payable to the Manager during such Measurement Period pursuant to this Sec tion 3 would constitute without giving effect to such reduction. The amount of such reduction attributable to any Measurement Period shall reduce the amount of the next quarterly payment of the fee payable pursuant to this Section 3 following the end of such Measurement Period, and of any subsequent quarterly or more frequent payments, as may be necessary. The expenses attributable to leverage for investment purposes and the portion of the Fund’s net income and net short-term capital gains accruing during any Measurement Period as a result of the fact that leverage for investment purposes was outstanding during such Measurement Period shall be determined by the Trustees of the Fund.
[For Putnam Tax-Free Health Care Fund only] In the event that, during any period for which payments of dividends or other distributions on any outstanding shares of beneficial interest of the Fund having a preference as to dividends and/or in liquidation over the Fund’s common shares of beneficial interest (“Preferred Shares”) are payable or during which payments of interest or fees (whether designated as such or implied) are payable in connection with any indebtedness or other obligation of the Fund incurred for investment purposes (a “Measurement Period”), the amount of dividends or other distributions payable with respect to such Preferred Shares, plus the amount of interest payments and fees with respect to such indebtedness or other obligation, plus additional expenses attributable to any such leverage for investment purposes for such Measurement Period, exceeds the portion of the Fund’s net income and net short-term capital gains (but not long-term capital gains) accruing during such Measurement Period as a result of the fact that such Preferred Shares and/or such indebtedness or other obligation was outstanding during the Measurement Period, then the fee payable to the Manager pursuant to this Section 3 shall be reduced by the amount of such excess; provided, however, that the amount of such reduction for any such Period shall not exceed the amount determined by multiplying (i)(A) the aggregate liquidation preference of the average number of Preferred Shares outstanding during the Period plus (B) the aggregate value of all other assets representing leverage for investment purposes by (ii) the percentage of the Average Net Assets of the Fund which the fee payable to the Manager during such Measurement Period pursuant to this Section 3 would constitute without giving effect to such reduction. The amount of such reduction attributable to any Measurement Period shall reduce the amount of the next quarterly payment of the fee payable pursuant to this Section 3 following the end of such Measurement Period, and of any subsequent quarterly or more frequent payments, as may be necessary. The expenses attributable to leverage for investment purposes and the portion of the Fund’s net income and net short-term capital gains accruing during any Measurement Period as a result of the fact that Preferred Shares and/or other leverage for investment purposes were outstanding during such Measurement Period shall be determined by the Trustees of the Fund.
The fees payable by the Fund to the Manager pursuant to this Section 3 will be reduced by any commissions, fees, brokerage or similar payments received by the Manager or any affiliated person of the Manager in connection with the purchase and sale of portfolio investments of the Fund, less any direct expenses approved by the Trustees incurred by the Manager or any affiliated person of the Manager in connection with obtaining such payments.
In the event that expenses of the Fund for any fiscal year exceed the expense limitation on investment company expenses imposed by any statute or regulatory authority of any jurisdiction in which shares of the Fund are qualified for offer or sale, the compensation due the Manager for such fiscal year will be reduced by the amount of excess by a reduction or refund thereof. In the event that the expenses of the Fund exceed any expense limitation which the Manager may, by written notice to the Fund, voluntarily declare to be effective subject to such terms and conditions as the Manager may prescribe in such notice, the compensation due
B-4
the Manager will be reduced, and if necessary, the Manager will assume expenses of the Fund, to the extent required by the terms and conditions of such expense limitation.
If the Manager serves for less than the whole of a [month/quarter], the foregoing compensation will be prorated.
4. ASSIGNMENT TERMINATES THIS CONTRACT; AMENDMENTS OF THIS CONTRACT.
This Contract will automatically terminate, without the payment of any penalty, in the event of its assignment, provided that no delegation of responsibilities by the Manager pursuant to Section 1(f) will be deemed to constitute an assignment. No provision of this Contract may be changed, waived, discharged or terminated orally, but only by an instrument in writing signed by the party against which enforcement of the change, waiver, discharge or termination is sought. No amendment of this Contract is effective until approved in a manner consistent with the 1940 Act, the rules and regulations under the 1940 Act and any applicable guidance or interpretation of the Securities Exchange Commission or its staff.
5. EFFECTIVE PERIOD AND TERMINATION OF THIS CONTRACT.
This Contract is effective upon its execution and will remain in full force and effect as to a Fund continuously thereafter (unless terminated automatically as set forth in Section 4 or terminated in accordance with the following paragraph) through June 30, 2008, and will continue in effect from year to year thereafter so long as its continuance is approved at least annually by (i) the Trustees, or the shareholders by the affirmative vote of a majority of the outstanding shares of the respective Fund, and (ii) a majority of the Trustees who are not interested persons of the Fund or of the Manager, by vote cast in person at a meeting called for the purpose of voting on such approval.
Either party hereto may at any time terminate this Contract as to a Fund by not less than 60 days’ written notice delivered or mailed by registered mail, postage prepaid, to the other party. Action with respect to a Fund may be taken either (i) by vote of a majority of the Trustees or (ii) by the affirmative vote of a majority of the outstanding shares of the respective Fund.
Termination of this Contract pursuant to this Section 5 will be without the payment of any penalty.
6. CERTAIN DEFINITIONS.
For the purposes of this Contract, the “affirmative vote of a majority of the outstanding shares” of a Fund means the affirmative vote, at a duly called and held meeting of shareholders of the respective Fund, (a) of the holders of 67% or more of the shares of the Fund present (in person or by proxy) and entitled to vote at the meeting, if the holders of more than 50% of the outstanding shares of the Fund entitled to vote at the meeting are present in person or by proxy or (b) of the holders of more than 50% of the outstanding shares of the Fund entitled to vote at the meeting, whichever is less.
For the purposes of this Contract, the terms “affiliated person,” “control,” “interested person” and “assignment” have their respective meanings defined in the 1940 Act, subject, however, to the rules and regulations under the 1940 Act and any applicable guidance or interpretation of the Securities Exchange Commission or its staff; the term “approve at least annually” will be construed in a manner consistent with the 1940 Act and the rules and regulations under the 1940 Act and any applicable guidance or interpretation of the Securities Exchange Commission or its staff; and the term “brokerage and research services” has the meaning given in the Securities Exchange Act of 1934 and the rules and regulations under the Securities Exchange Act of 1934 and under any applicable guidance or interpretation of the Securities Exchange Commission or its staff.
7. NON-LIABILITY OF MANAGER.
In the absence of willful misfeasance, bad faith or gross negligence on the part of the Manager, or reckless disregard of its obligations and duties hereunder, the Manager shall not be subject to any liability to the Fund or to any shareholder of the Fund for any act or omission in the course of, or connected with, rendering services hereunder.
8. LIMITATION OF LIABILITY OF THE TRUSTEES, OFFICERS, AND SHAREHOLDERS.
A copy of the Agreement and Declaration of Trust of the Fund is on file with the Secretary of The Commonwealth of Massachusetts, and notice is hereby given that this instrument is executed on behalf of the Trustees of the Fund as Trustees and not individually and that the obligations of or arising out of this instrument are not binding upon any of the Trustees, officers or shareholders individually but are binding only upon the assets and property of the respective Fund.
B-5
IN WITNESS WHEREOF, [NAME OF FUND] and
PUTNAM INVESTMENT MANAGEMENT, LLC have
each caused this instrument to be signed on its behalf
by its President or a Vice President thereunto duly
authorized, all as of the day and year first above written.
[NAME OF FUND]
By:
___________________________
PUTNAM INVESTMENT
MANAGEMENT, LLC
By:
___________________________
B-6
Schedule B | |
[LIST OF FUNDS] | [FEE SCHEDULE. SeeAppendix Eto this proxy |
statement for each fund’s detailed fee information.] |
B-7
APPENDIX C
Comparison of Terms of
Management Contracts
As noted above, the Trustees have taken the opportunity presented by the need to approve new management contracts to standardize, clarify and modernize various provisions of your fund’s management contract. ThisAppendix Cdescribes certain differences between the proposed new management contract and the current management contracts. Except as noted, the proposed new management contract for a fund does not differ in any substantive respects from a fund’s current management contract. Minor clarifications of language, corrections of obvious typographical errors and elimination of outdated provisions with no current or future application that do not change a reasonable substantive interpretation of a contract are not separately described. The complete text of the form of the proposed new management contract is included inAppendix Band you should refer to that Appendix for the complete terms of the contract. For each fund’s particular fee schedule, please refer toAppendix E. Note that defined terms reflected here are defined in the proposed management contract atAppendix B(i.e., Manager).
Names
The current management contracts for some funds have not been updated to reflect the current name and jurisdiction of organization of the funds’ investment adviser, Putnam Investment Management, LLC, a Delaware limited liability company. In addition, for a number of funds, the current management contracts have not been updated to reflect new fund names (as a result of the creation of a new fund) or the termination of a prior fund (e.g., in the case of a fund merger). The proposed management contracts reflect the current name and jurisdiction of organization of the funds’ investment adviser, Putnam Investment Management, LLC, as well as the current names of the funds.
Services
Putnam Municipal Opportunities TrustThese funds are currently party to separate investment management and administrative services contracts with the Manager. Each fund’s current investment management contract, in comparison with its proposed new management contract, does not include provisions relating to administrative services. If the proposed new management contracts for these funds are approved, these funds’ administrative services contracts will be terminated and the funds will receive administrative (and investment management) services under the proposed new management contract.
Sub-Advisers and Sub-Administrators
All Putnam fundsNone of the funds’ current management contracts specifically address the Manager’s ability to delegate responsibilities to sub-advisers or sub-administrators. A provision is included in the proposed new management contracts for all of the funds that explicitly recognizes the Manager’s ability to delegate responsibilities, in accordance with current interpretations and guidance of the SEC’s staff. In addition, the proposed new management contract provides that a delegation of the Manager’s responsibilities permitted under the contract is not deemed to constitute an “assignment” that would automatically cause the contract to terminate. The funds do not anticipate any change in the Manager’s delegation of responsibilities as a result of these changes.
C-1
Fees
Putnam Municipal Opportunities TrustThe current management contracts and the proposed new management contracts for these funds provide that the fund will pay the Manager compensation for the Manager’s investment management services rendered, for the facilities furnished to the fund, and for the expenses borne by the Manager in connection with providing such services and facilities, including placing orders with brokers or dealers for the purchase and sale of portfolio investments for the fund. As mentioned above, the proposed new management contracts for these funds also address the provision of administrative services. Thus, the proposed new management contracts for these funds include the fees for both investment and administrative services. There is no change in the aggregate fees that each of these funds will pay to the Manager for investment management and administrative services. Please refer toAppendix Efor information about the applicable fee rates.
The current management contracts for these funds do not address a reduction of management fees through an expense limitation voluntarily agreed to in writing by the Manager in the event that the expenses of the fund exceed any expense limitation which the Manager may have declared to be effective. The proposed new management contracts include a provision addressing the possibility that management fees may be reduced where expenses of the fund exceed any voluntary expense limitations assumed by the Manager.
Term and Termination
All Putnam fundsThe current management contracts provide that either party may terminate the contract as to a fund by not more than 60 days’ nor less than 30 days’ written notice. Each proposed new management contract provides that either party to it may terminate the contract as to a fund at any time by not less than 60 days’ written notice, which, from the funds’ perspective, provides a more reasonable period of time during which to seek a new investment adviser if the Manager terminates the contract.
Each proposed new management contract provides that it is effective upon execution and will remain in full force and effect as to a fund continuously thereafter, unless terminated automatically in the event of assignment or by either party to the contract by written notice (as described above), through June 30, 2008, and that after June 30, 2008 it will continue from year to year so long as its continuance is approved at least annually in a specified manner. The current management contracts’ provisions addressing effective period and termination do not contain any reference to June 30, 2008 but are otherwise substantively the same as the provisions in the proposed new management contract.
C-2
APPENDIX D
Management Contracts: Dates and Approvals
The following table contains information regarding the date of each fund’s current management contract, the date on which it was last approved by shareholders and the purpose for that submission. Except as noted, for each fund listed below, the date on which the continuance of its management contract was last approved by the Board of Trustees was June 9, 2006.
Purpose of | ||||||
Submission of | ||||||
Date Current | Current | |||||
Management | Management | |||||
Contract Last | Contract to | |||||
Date of Current | Submitted to | Shareholder | ||||
Fund | Management Contract | Shareholder Vote | Vote | |||
Putnam American Government Income Fund | 03/05/98 | March 5, 1998 | Fee increase | |||
Putnam AMT-Free Insured Municipal Fund | 07/26/85, as | July 7, 1991 | Fee increase | |||
revised 03/21/05 | ||||||
Putnam Arizona Tax Exempt Income Fund | 07/16/99 | March 5, 1992 | Fee structure | |||
change | ||||||
Putnam Asset Allocation: Balanced Portfolio | 01/20/97 | November 4, 1993 | Organization of | |||
the fund | ||||||
Putnam Asset Allocation: Conservative Portfolio | 01/20/97 | November 4, 1993 | Organization of | |||
the fund | ||||||
Putnam Asset Allocation: Growth Portfolio | 01/20/97 | November 4, 1993 | Organization of | |||
the fund | ||||||
Putnam California Investment Grade Municipal Trust* | 01/01/06 | November 12, 1992 | Organization of | |||
the fund | ||||||
Putnam California Tax Exempt Income Fund | 07/01/99 | July 11, 1991 | Fee structure | |||
change | ||||||
Putnam Capital Appreciation Fund | 09/20/96 | May, 1993 | Organization of | |||
the fund | ||||||
Putnam Capital Opportunities Fund^ | 12/02/94, as most recently | June 1, 1998 | Organization of | |||
revised 02/09/07 | the fund | |||||
Putnam Classic Equity Fund | 10/07/94 | June 6, 1991 | Fee increase | |||
Putnam Convertible Income-Growth Trust | 02/20/97 | July 1, 1994 | Fee increase | |||
Putnam Discovery Growth Fund | 09/29/95 | September 8, 1995 | Fee increase | |||
Putnam Diversified Income Trust | 01/20/97 | August, 1988 | Organization of | |||
the fund | ||||||
Putnam Equity Income Fund | 07/11/96 | July 11, 1996 | Fee increase | |||
Putnam Europe Equity Fund | 10/21/96 | September 7, 1990 | Organization of | |||
the fund | ||||||
Putnam Floating Rate Income Fund | 06/07/96, as most recently | June, 2004 | Organization of | |||
revised 06/25/04 | the fund | |||||
D-1
Purpose of Last | ||||||
Submission of | ||||||
Date Current | Current | |||||
Management | Management | |||||
Contract Last | Contract to | |||||
Date of Current | Submitted to | Shareholder | ||||
Fund | Management Contract | Shareholder Vote | Vote | |||
The Putnam Fund for Growth and Income | 07/01/00 | July 11, 1991 | Fee structure | |||
change | ||||||
The George Putnam Fund of Boston | 07/11/96 | July 11, 1996 | Fee increase | |||
Putnam Global Equity Fund | 12/07/00 | December 7, 2000 | Fee increase | |||
Putnam Global Income Trust | 07/01/99 | July 11, 1991 | Fee structure | |||
change | ||||||
Putnam Global Natural Resources Fund | 12/20/96 | July 9, 1992 | Fee decrease | |||
Putnam Growth Opportunities Fund^ | 12/02/94, as most recently | October 2, 1995 | Organization of | |||
revised 02/09/07 | the fund | |||||
Putnam Health Sciences Trust | 10/20/96 | March 5, 1992 | Fee increase | |||
Putnam High Income Securities Fund* | 01/01/06 | July 14, 2005 | Permit compensation | |||
for the management | ||||||
of leveraged assets | ||||||
Putnam High Yield Advantage Fund | 03/20/97 | May 5, 1994 | Fee increase | |||
Putnam High Yield Municipal Trust* | 01/01/06 | June 6, 1991 | Continuation of | |||
contract without any | ||||||
changes approved at | ||||||
first shareholder meeting | ||||||
Putnam High Yield Trust | 12/20/96 | July 8, 1993 | Fee increase | |||
Putnam Income Fund | 04/06/95 | April 6, 1995 | Fee increase | |||
Putnam Income Strategies Fund | 06/07/96, as most recently | September 13, 2004 | Organization of | |||
revised 06/25/04 | the fund | |||||
Putnam International Capital Opportunities Fund^ | 12/02/94, as most recently | December 28, 1995 | Organization of | |||
revised 02/09/07 | the fund | |||||
Putnam International Equity Fund | 10/21/96 | October, 1990 | Organization of | |||
the fund | ||||||
Putnam International Growth and Income Fund | 06/07/96, as most recently | August 1, 1996 | Organization of | |||
revised 06/25/04 | the fund | |||||
Putnam International New Opportunities Fund^ | 12/02/94, as most recently | January 3, 1995 | Organization of | |||
revised 02/09/07 | the fund | |||||
Putnam Investment Grade Municipal Trust* | 01/01/06 | July 11, 1991 | Continuation of | |||
contract without any | ||||||
changes approved at first | ||||||
shareholder meeting | ||||||
D-2
Purpose of Last | ||||||
Submission of | ||||||
Date Current | Current | |||||
Management | Management | |||||
Contract Last | Contract to | |||||
Date of Current | Submitted to | Shareholder | ||||
Fund | Management Contract | Shareholder Vote | Vote | |||
Putnam Investors Fund | 11/20/96 | July 9, 1992 | Fee increase | |||
Putnam Limited Duration Government Income Fund | 07/01/00 | February 16, 1993 | Organization of | |||
the fund | ||||||
Putnam Managed Municipal Income Trust* | 01/01/06 | February 24, 1989 | Organization of | |||
the fund | ||||||
Putnam Massachusetts Tax Exempt Income Fund | 07/01/99 | July 11, 1991 | Fee structure | |||
change | ||||||
Putnam Master Intermediate Income Trust* | 01/01/06 | July 14, 2005 | Permit compensation | |||
for the management of | ||||||
leveraged assets | ||||||
Putnam Michigan Tax Exempt Income Fund | 07/01/99 | July 11, 1991 | Fee structure | |||
change | ||||||
Putnam Mid Cap Value Fund^ | 12/02/94, as most recently | November 1, 1999 | Organization of | |||
revised 02/09/07 | the fund | |||||
Putnam Minnesota Tax Exempt Income Fund | 07/01/99 | July 11, 1991 | Fee structure | |||
change | ||||||
Putnam Money Market Fund* | 01/01/06 | November 5, 1982 | Fee decrease | |||
Putnam Municipal Bond | 01/01/06 | November 12, 1992 | Organization of | |||
the fund | ||||||
Putnam Municipal Opportunities | 01/01/06 | May 13, 1993 | Organization of | |||
the fund | ||||||
Putnam New Jersey Tax Exempt Income Fund | 07/01/99 | July 11, 1991 | Fee structure | |||
change | ||||||
Putnam New Opportunities Fund | 07/01/00 | December 5, 1991 | Fee decrease | |||
Putnam New Value Fund^ | 12/02/94, as most recently | January 3, 1995 | Organization of | |||
revised 02/09/07 | the fund | |||||
Putnam New York Investment Grade Municipal | 01/01/06 | November 12, 1992 | Organization of | |||
* Excludes the amount of the aggregate liquidation preference of outstanding preferred shares of each fund.
Putnam New York | 07/01/99 | July 11, 2001 | Fee increase | |||
Putnam Ohio Tax Exempt Income Fund | 07/01/99 | July 11, 2001 | Fee structure | |||
change | ||||||
Putnam OTC & Emerging Growth Fund | 11/20/96 | July 8, 1993 | Fee structure | |||
change | ||||||
Putnam Pennsylvania Tax Exempt Income Fund | 07/01/99 | July 11, 1991 | Fee structure | |||
change | ||||||
D-3
Purpose of Last | ||||||
Submission of | ||||||
Date Current | Current | |||||
Management | Management | |||||
Contract Last | Contract to | |||||
Date of Current | Submitted to | Shareholder | ||||
Fund | Management Contract | Shareholder Vote | Vote | |||
Putnam Premier Income Trust* | 01/01/06 | July 14, 2005 | Permit compensation for | |||
the management of | ||||||
leveraged assets | ||||||
Putnam Prime Money Market Fund | 02/13/03 | February, 2003 | Organization of | |||
the fund | ||||||
Putnam Research Fund**^ | 12/02/94, as most recently | December 14, 2006 | Eliminating the incentive | |||
revised 02/09/07 | fee component of the | |||||
management fee | ||||||
Putnam RetirementReady 2010 Fund | 06/11/04, as most recently | October 28, 2004 | Organization of | |||
revised 03/10/05 | the fund | |||||
Putnam RetirementReady 2015 Fund | 06/11/04, as most recently | October 28, 2004 | Organization of | |||
revised 03/10/05 | the fund | |||||
Putnam RetirementReady 2020 Fund | 06/11/04, as most recently | October 28, 2004 | Organization of | |||
revised 03/10/05 | the fund | |||||
Putnam RetirementReady 2025 Fund | 06/11/04, as most recently | October 28, 2004 | Organization of | |||
revised 03/10/05 | the fund | |||||
Putnam RetirementReady 2030 Fund | 06/11/04, as most recently | October 28, 2004 | Organization of | |||
revised 03/10/05 | the fund | |||||
Putnam RetirementReady 2035 Fund | 06/11/04, as most recently | October 28, 2004 | Organization of | |||
revised 03/10/05 | the fund | |||||
Putnam RetirementReady 2040 Fund | 06/11/04, as most recently | October 28, 2004 | Organization of | |||
revised 03/10/05 | the fund | |||||
Putnam RetirementReady 2045 Fund | 06/11/04, as most recently | October 28, 2004 | Organization of | |||
revised 03/10/05 | the fund | |||||
Putnam RetirementReady 2050 Fund | 06/11/04, as most recently | April 22, 2005 | Organization of | |||
revised 03/10/05 | the fund | |||||
Putnam RetirementReady Maturity Fund | 06/11/04, as most recently | October 28, 2004 | Organization of | |||
revised 03/10/05 | the fund | |||||
Putnam Small Cap Growth Fund | 06/07/96, as most recently | December 31, 1997 | Organization of | |||
revised 06/25/04 | the fund | |||||
Putnam Small Cap Value Fund^ | 12/02/94, as most recently | April 13, 1999 | Organization of | |||
revised 02/09/07 | the fund | |||||
Putnam Tax Exempt Income Fund | 07/01/99 | July 11, 1991 | Fee increase | |||
Putnam Tax Exempt Money Market Fund | 01/20/97 | July 9, 1992 | Fee decrease | |||
Putnam Tax-Free Health Care Fund*** | 01/01/06 | December 27, 2005 | Permit compensation for | |||
the management of | ||||||
leveraged assets | ||||||
Putnam Tax-Free High Yield Fund | 07/26/85, as most recently | May 5, 1994 | Fee increase | |||
revised 03/21/05 | ||||||
Putnam Tax Smart Equity Fund® | 04/13/99 | April, 1999 | Organization of | |||
the fund | ||||||
D-4
Purpose of Last | ||||||
Submission of | ||||||
Date Current | Current | |||||
Management | Management | |||||
Contract Last | Contract to | |||||
Date of Current | Submitted to | Shareholder | ||||
Fund | Management Contract | Shareholder Vote | Vote | |||
Putnam U.S. Government Income Trust | 07/08/94 | July 11, 1991 | Fee decrease | |||
Putnam Utilities Growth and Income Fund | 02/20/97 | March 5, 1992 | Fee structure | |||
change | ||||||
Putnam Vista Fund | 11/20/96 | July 8, 1993 | Fee increase | |||
Putnam Voyager Fund | 07/01/00 | July 11, 1991 | Fee increase | |||
Putnam VT American Government Income Fund | 10/02/87, as most recently | February 1, 2000 | Organization of | |||
revised 03/17/03 | the fund | |||||
Putnam VT Capital Appreciation Fund | 10/02/87, as most recently | September 29, 2000 | Organization of | |||
revised, 03/17/03 | the fund | |||||
Putnam VT Capital Opportunities Fund | 10/02/87, as most recently | May 1, 2003 | Organization of | |||
revised 03/17/03 | the fund | |||||
Putnam VT Discovery Growth Fund | 10/02/87, as most recently | September 29, 2000 | Organization of | |||
revised 03/17/03 | the fund | |||||
Putnam VT Diversified Income Fund | 10/02/87, as most recently | September 15, 1993 | Organization of | |||
revised 03/17/03 | the fund | |||||
Putnam VT Equity Income Fund | 10/02/87, as most recently | May 1, 2003 | Organization of | |||
revised 03/17/03 | the fund | |||||
Putnam VT The George Putnam Fund of Boston | 10/02/87, as most recently | April 30, 1998 | Organization of | |||
revised 03/17/03 | the fund | |||||
Putnam VT Global Asset Allocation Fund | 10/02/87, as most recently | February 1, 1988 | Organization of | |||
revised 03/17/03 | the fund | |||||
Putnam VT Global Equity Fund | 10/02/87, as most recently | November 4, 1999 | Fee increase | |||
revised 03/17/03 | ||||||
Putnam VT Growth and Income Fund | 10/02/87, as most recently | February 1, 1988 | Organization of | |||
revised 03/17/03 | the fund | |||||
Putnam VT Growth Opportunities Fund | 10/02/87, as most recently | February 1, 2000 | Organization of | |||
revised 03/17/03 | the fund | |||||
Putnam VT Health Sciences Fund | 10/02/87, as most recently | April 30, 1998 | Organization of | |||
revised 03/17/03 | the fund | |||||
Putnam VT High Yield Fund | 10/02/87, as most recently | February 1, 1988 | Organization of | |||
revised 03/17/03 | the fund | |||||
Putnam VT Income Fund | 10/02/87, as most recently | July 13, 1995 | Fee increase | |||
revised 03/17/03 | ||||||
Putnam VT International Equity Fund | 10/02/87, as most recently | January 2, 1997 | Organization of | |||
revised 03/17/03 | the fund | |||||
Putnam VT International Growth and Income Fund | 10/02/87, as most recently | January 2, 1997 | Organization of | |||
revised 03/17/03 | the fund | |||||
Putnam VT International New Opportunities Fund | 10/02/87, as most recently | January 2, 1997 | Organization of | |||
revised 03/17/03 | the fund | |||||
Putnam VT Investors Fund | 10/02/87, as most recently | April 30, 1998 | Organization of | |||
revised 03/17/03 | the fund | |||||
Putnam VT Mid Cap Value Fund | 10/02/87, as most recently | May 1, 2003 | Organization of | |||
revised 03/17/03 | the fund | |||||
D-5
Purpose of Last | ||||||
Submission of | ||||||
Date Current | Current | |||||
Management | Management | |||||
Contract Last | Contract to | |||||
Date of Current | Submitted to | Shareholder | ||||
Fund | Management Contract | Shareholder Vote | Vote | |||
Putnam VT Money Market Fund | 10/02/87, as most recently | February 1, 1988 | Organization of | |||
revised 03/17/03 | the fund | |||||
Putnam VT New Opportunities Fund | 10/02/87, as most recently | May 2, 1994 | Organization of | |||
revised 03/17/03 | the fund | |||||
Putnam VT New Value Fund | 10/02/87, as most recently | January 2, 1997 | Organization of | |||
revised 03/17/03 | the fund | |||||
Putnam VT OTC & Emerging Growth Fund | 10/02/87, as most recently | April 30, 1998 | Organization of | |||
revised 03/17/03 | the fund | |||||
Putnam VT Research Fund | 10/02/87, as most recently | September 30, 1998 | Organization of | |||
revised 03/17/03 | the fund | |||||
Putnam VT Small Cap Value Fund | 10/02/87, as most recently | April 30, 1999 | Organization of | |||
revised 03/17/03 | the fund | |||||
Putnam VT Utilities Growth and Income Fund | 10/02/87, as most recently | July 11, 1996 | Fee increase | |||
revised 03/17/03 | ||||||
Putnam VT Vista Fund | 10/02/87, as most recently | January 2, 1997 | Organization of | |||
revised 03/17/03 | the fund | |||||
Putnam VT Voyager Fund | 10/02/87, as most recently | February 1, 1988 | Organization of | |||
revised 03/17/03 | the fund | |||||
* Includes shares repurchased byAt a meeting held on January 13, 2006, the Board of Trustees formally approved revised management contracts for these funds reflecting management fee reductions.
** At a meeting held on October 13, 2006, the Board of Trustees formally approved a revised management contract for this fund, amending the management contract to remove the incentive fee component from the management fee.
*** At a meeting held on July 15, 2005, the Board of Trustees formally approved a revised management contract for this fund, reflecting a management fee reduction and changing the fee base under the contract to “average weekly assets,” which includes assets representing leverage for investment purposes.
^ At a meeting held on February 9, 2007, the Board of Trustees amended the management contract of Putnam Investment Funds, the Trust of which Putnam Capital Opportunities Fund, Putnam Growth Opportunities Fund, Putnam International Capital Opportunities Fund, Putnam International New Opportunities Fund, Putnam Mid Cap Value Fund, Putnam New Value Fund, Putnam Research Fund, and Putnam Small Cap Value Fund are series, to eliminate references to funds no longer in trades that had not settled as of August 3, 2006.existence or which have separate management contracts with Putnam Management.
Preferred shares:
88D-6
APPENDIX E
Management Contracts: Fees | ||||
The following table sets forth the management fee schedule, the amount of management fees paid in the most recent fiscal year for each fund, and the annual rate at which fees were paid. | ||||
Amount of Management Fee | ||||
Paid in the Most Recent | ||||
Fiscal Year | Annual Rate at | |||
(after applicable waivers and | which Fees | |||
Fund | Management Fee Schedule | reimbursements, if any) ($) | were Paid | |
Putnam American | First $500 million | 0.65% | 4,373,306 | 0.55% of average |
Government Income Fund | Next $500 million | 0.55% | net assets | |
Next $500 million | 0.50% | |||
Next $5 billion | 0.45% | |||
Next $5 billion | 0.425% | |||
Next $5 billion | 0.405% | |||
Next $5 billion | 0.39% | |||
Any excess thereafter | 0.38% | |||
Putnam AMT-Free | The lesser of 0.50%, or | 1,790,563 | 0.50% of average | |
Insured Municipal Fund | First $500 million | 0.60% | net assets | |
Next $500 million | 0.50% | |||
Next $500 million | 0.45% | |||
Next $5 billion | 0.40% | |||
Next $5 billion | 0.375% | |||
Next $5 billion | 0.355% | |||
Next $5 billion | 0.34% | |||
Any excess thereafter | 0.33% | |||
Putnam Arizona Tax | The lesser of 0.50%, or | 396,902 | 0.41% of average | |
Exempt Income Fund | First $500 million | 0.60% | net assets | |
Next $500 million | 0.50% | |||
Next $500 million | 0.45% | |||
Next $5 billion | 0.40% | |||
Next $5 billion | 0.375% | |||
Next $5 billion | 0.355% | |||
Next $5 billion | 0.34% | |||
Any excess over $21.5 billion | 0.33% | |||
Putnam Asset Allocation: | First $500 million | 0.70% | 10,841,716 | 0.58% of average |
Balanced Portfolio | Next $500 million | 0.60% | net assets | |
Next $500 million | 0.55% | |||
Next $5 billion | 0.50% | |||
Next $5 billion | 0.475% | |||
Next $5 billion | 0.455% | |||
Next $5 billion | 0.44% | |||
Any excess over $21.5 billion | 0.43% | |||
Putnam Asset Allocation: | First $500 million | 0.70% | 5,759,923 | 0.63% of average |
Conservative Portfolio | Next $500 million | 0.60% | net assets | |
Next $500 million | 0.55% | |||
Next $5 billion | 0.50% | |||
Next $5 billion | 0.475% | |||
Next $5 billion | 0.455% | |||
Next $5 billion | 0.44% | |||
Any excess over $21.5 billion | 0.43% | |||
Putnam Asset Allocation: | First $500 million | 0.70% | 9,639,295 | 0.60% of average |
Growth Portfolio | Next $500 million | 0.60% | net assets | |
Next $500 million | 0.55% | |||
Next $5 billion | 0.50% | |||
Next $5 billion | 0.475% | |||
Next $5 billion | 0.455% | |||
Next $5 billion | 0.44% | |||
Any excess over $21.5 billion | 0.43% | |||
E-1
Amount of Management Fee | ||||
Paid in the Most Recent | ||||
Fiscal Year | Annual Rate at | |||
(after applicable waivers and | which Fees | |||
Fund | Management Fee Schedule | reimbursements, if any) ($) | were Paid | |
Putnam California Investment | The lesser of 0.55%, or | 531,472 | 0.77% of average | |
Grade Municipal Trust | First $500 million | 0.65% | weekly net assets | |
Next $500 million | 0.55% | attributable to | ||
Next $500 million | 0.50% | common shares* | ||
Next $5 billion | 0.45% | |||
Next $5 billion | 0.425% | |||
Next $5 billion | 0.405% | |||
Next $5 billion | 0.39% | |||
Any excess thereafter | 0.38% | |||
Putnam California Tax | The lesser of 0.50%, or | 10,368,635 | 0.48% of average | |
Exempt Income Fund | First $500 million | 0.60% | net assets | |
Next $500 million | 0.50% | |||
Next $500 million | 0.45% | |||
Next $5 billion | 0.40% | |||
Next $5 billion | 0.375% | |||
Next $5 billion | 0.355% | |||
Next $5 billion | 0.34% | |||
Any excess thereafter | 0.33% | |||
Putnam Capital | First $500 million | 0.65% | 4,388,833 | 0.62% of average |
Appreciation Fund | Next $500 million | 0.55% | net assets | |
Next $500 million | 0.50% | |||
Next $5 billion | 0.45% | |||
Next $5 billion | 0.425% | |||
Next $5 billion | 0.405% | |||
Next $5 billion | 0.39% | |||
Any excess over $21.5 billion | 0.38% | |||
Putnam Capital | First $500 million | 0.65% | 6,363,713 | 0.59% of average |
Opportunities Fund | Next $500 million | 0.55% | net assets | |
Next $500 million | 0.50% | |||
Next $5 billion | 0.45% | |||
Next $5 billion | 0.425% | |||
Next $5 billion | 0.405% | |||
Next $5 billion | 0.39% | |||
Any excess thereafter | 0.38% | |||
Putnam Classic Equity Fund | First $500 million | 0.65% | 4,836,159 | 0.61% of average |
Next $500 million | 0.55% | net assets | ||
Next $500 million | 0.50% | |||
Next $5 billion | 0.45% | |||
Next $5 billion | 0.425% | |||
Next $5 billion | 0.405% | |||
Next $5 billion | 0.39% | |||
Any excess thereafter | 0.38% | |||
Putnam Convertible | First $500 million | 0.65% | 4,231,616 | 0.62% of average |
Income-Growth Trust | Next $500 million | 0.55% | net assets | |
Next $500 million | 0.50% | |||
Next $5 billion | 0.45% | |||
Next $5 billion | 0.425% | |||
Next $5 billion | 0.405% | |||
Next $5 billion | 0.39% | |||
Any excess thereafter | 0.38% | |||
Putnam Discovery | First $500 million | 0.70% | 5,497,942 | 0.60% of average |
Growth Fund | Next $500 million | 0.60% | net assets | |
Next $500 million | 0.55% | |||
Next $5 billion | 0.50% | |||
Next $5 billion | 0.475% | |||
Next $5 billion | 0.455% | |||
Next $5 billion | 0.44% | |||
Any excess thereafter | 0.43% | |||
E-2
Amount of Management Fee | ||||
Paid in the Most Recent | ||||
Fiscal Year | Annual Rate at | |||
(after applicable waivers and | which Fees | |||
Fund | Management Fee Schedule | reimbursements, if any) ($) | were Paid | |
Putnam Diversified | First $500 million | 0.70% | 17,403,729 | 0.55% of average |
Income Trust | Next $500 million | 0.60% | net assets | |
Next $500 million | 0.55% | |||
Next $5 billion | 0.50% | |||
Next $5 billion | 0.475% | |||
Next $5 billion | 0.455% | |||
Next $5 billion | 0.44% | |||
Any excess thereafter | 0.43% | |||
Putnam Equity Income Fund | First $500 million | 0.65% | 18,067,258 | 0.50% of average |
Next $500 million | 0.55% | net assets | ||
Next $500 million | 0.50% | |||
Next $5 billion | 0.45% | |||
Next $5 billion | 0.425% | |||
Next $5 billion | 0.405% | |||
Next $5 billion | 0.39% | |||
Any excess thereafter | 0.38% | |||
Putnam Europe Equity Fund | First $500 million | 0.80% | 4,213,337 | 0.79% of average |
Next $500 million | 0.70% | net assets | ||
Next $500 million | 0.65% | |||
Next $5 billion | 0.60% | |||
Next $5 billion | 0.575% | |||
Next $5 billion | 0.555% | |||
Next $5 billion | 0.54% | |||
Any excess thereafter | 0.53% | |||
Putnam Floating Rate | First $500 million | 0.65% | 1,719,001** | 0.62% of average |
Income Fund | Next $500 million | 0.55% | net assets | |
Next $500 million | 0.50% | |||
Next $5 billion | 0.45% | |||
Next $5 billion | 0.425% | |||
Next $5 billion | 0.405% | |||
Next $5 billion | 0.39% | |||
Next $5 billion | 0.38% | |||
Next $5 billion | 0.37% | |||
Next $5 billion | 0.36% | |||
Next $5 billion | 0.35% | |||
Next $5 billion | 0.34% | |||
Next $8.5 billion | 0.33% | |||
Any excess thereafter | 0.32% | |||
The Putnam Fund for | First $500 million | 0.65% | 67,376,969 | 0.44% of average |
Growth and Income | Next $500 million | 0.55% | net assets | |
Next $500 million | 0.50% | |||
Next $5 billion | 0.45% | |||
Next $5 billion | 0.425% | |||
Next $5 billion | 0.405% | |||
Next $5 billion | 0.39% | |||
Next $5 billion | 0.38% | |||
Next $5 billion | 0.37% | |||
Next $5 billion | 0.36% | |||
Next $5 billion | 0.35% | |||
Next $5 billion | 0.34% | |||
Next $8.5 billion | 0.33% | |||
Any excess over $55 billion | 0.32% | |||
The George Putnam Fund | First $500 million | 0.65% | 23,520,227 | 0.48% of average |
of Boston | Next $500 million | 0.55% | net assets | |
Next $500 million | 0.50% | |||
Next $5 billion | 0.45% | |||
Next $5 billion | 0.425% | |||
Next $5 billion | 0.405% | |||
Next $5 billion | 0.39% | |||
Any excess thereafter | 0.38% | |||
E-3
Amount of Management Fee | ||||
Paid in the Most Recent | ||||
Fiscal Year | Annual Rate at | |||
(after applicable waivers and | which Fees | |||
Fund | Management Fee Schedule | reimbursements, if any) ($) | were Paid | |
Putnam Global Equity Fund | First $500 million | 0.80% | 15,165,340 | 0.68% of average |
Next $500 million | 0.70% | net assets | ||
Next $500 million | 0.65% | |||
Next $5 billion | 0.60% | |||
Next $5 billion | 0.575% | |||
Next $5 billion | 0.555% | |||
Next $5 billion | 0.54% | |||
Next $5 billion | 0.53% | |||
Next $5 billion | 0.52% | |||
Next $5 billion | 0.51% | |||
Next $5 billion | 0.50% | |||
Next $5 billion | 0.49% | |||
Next $8.5 billion | 0.48% | |||
Any excess over $55 billion | 0.47% | |||
Putnam Global Income Trust | First $500 million | 0.70% | 528,321 | 0.39% of average |
Next $500 million | 0.60% | net assets | ||
Next $500 million | 0.55% | |||
Next $5 billion | 0.50% | |||
Next $5 billion | 0.475% | |||
Next $5 billion | 0.455% | |||
Next $5 billion | 0.44% | |||
Any excess thereafter | 0.43% | |||
Putnam Global Natural | First $500 million | 0.70% | 4,126,921 | 0.68% of average |
Resources Fund | Next $500 million | 0.60% | net assets | |
Next $500 million | 0.55% | |||
Next $5 billion | 0.50% | |||
Next $5 billion | 0.475% | |||
Next $5 billion | 0.455% | |||
Next $5 billion | 0.44% | |||
Any excess thereafter | 0.43% | |||
Putnam Growth | First $500 million | 0.70% | 2,913,736 | 0.36% of average |
Opportunities Fund | Next $500 million | 0.60% | net assets | |
Next $500 million | 0.55% | |||
Next $5 billion | 0.50% | |||
Next $5 billion | 0.475% | |||
Next $5 billion | 0.455% | |||
Next $5 billion | 0.44% | |||
Any excess thereafter | 0.43% | |||
Putnam Health Sciences Trust | First $500 million | 0.70% | 14,802,805 | 0.57% of average |
Next $500 million | 0.60% | net assets | ||
Next $500 million | 0.55% | |||
Next $5 billion | 0.50% | |||
Next $5 billion | 0.475% | |||
Next $5 billion | 0.455% | |||
Next $5 billion | 0.44% | |||
Any excess over $21.5 billion | 0.43% | |||
Putnam High Income | First $500 million | 0.70% | 1,372,004 | 0.71% of average |
Securities Fund | Next $500 million | 0.60% | weekly net assets | |
Next $500 million | 0.55% | |||
Next $5 billion | 0.50% | |||
Next $5 billion | 0.475% | |||
Next $5 billion | 0.455% | |||
Next $5 billion | 0.44% | |||
Next $5 billion | 0.43% | |||
Next $5 billion | 0.42% | |||
Next $5 billion | 0.41% | |||
Next $5 billion | 0.40% | |||
Next $5 billion | 0.39% | |||
Next $8.5 billion | 0.38% | |||
Any excess thereafter | 0.37% | |||
E-4
Amount of Management Fee | ||||
Paid in the Most Recent | ||||
Fiscal Year | Annual Rate at | |||
(after applicable waivers and | which Fees | |||
Fund | Management Fee Schedule | reimbursements, if any) ($) | were Paid | |
Putnam High Yield | First $500 million | 0.70% | 5,676,755 | 0.66% of average |
Advantage Fund | Next $500 million | 0.60% | net assets | |
Next $500 million | 0.55% | |||
Next $5 billion | 0.50% | |||
Next $5 billion | 0.475% | |||
Next $5 billion | 0.455% | |||
Next $5 billion | 0.44% | |||
Any excess thereafter | 0.43% | |||
Putnam High Yield | The lesser of 0.55%, or | 1,448,462 | 0.83% of average | |
Municipal Trust | First $500 million | 0.65% | weekly net assets | |
Next $500 million | 0.55% | attributable to | ||
Next $500 million | 0.50% | common shares* | ||
Next $5 billion | 0.45% | |||
Next $5 billion | 0.425% | |||
Next $5 billion | 0.405% | |||
Next $5 billion | 0.39% | |||
Any excess thereafter | 0.38% | |||
Putnam High Yield Trust | First $500 million | 0.70% | 13,784,128 | 0.57% of average |
Next $500 million | 0.60% | net assets | ||
Next $500 million | 0.55% | |||
Next $5 billion | 0.50% | |||
Next $5 billion | 0.475% | |||
Next $5 billion | 0.455% | |||
Next $5 billion | 0.44% | |||
Any excess thereafter | 0.43% | |||
Putnam Income Fund | First $500 million | 0.65% | 11,940,410 | 0.47% of average |
Next $500 million | 0.55% | net assets | ||
Next $500 million | 0.50% | |||
Next $5 billion | 0.45% | |||
Next $5 billion | 0.425% | |||
Next $5 billion | 0.405% | |||
Next $5 billion | 0.39% | |||
Any excess thereafter | 0.38% | |||
Putnam Income | First $500 million | 0.65% | 0*** | 0.00%*** |
Strategies Fund | Next $500 million | 0.55% | ||
Next $500 million | 0.50% | |||
Next $5 billion | 0.45% | |||
Next $5 billion | 0.425% | |||
Next $5 billion | 0.405% | |||
Next $5 billion | 0.39% | |||
Next $5 billion | 0.38% | |||
Next $5 billion | 0.37% | |||
Next $5 billion | 0.36% | |||
Next $5 billion | 0.35% | |||
Next $5 billion | 0.34% | |||
Next $8.5 billion | 0.33% | |||
Any excess thereafter | 0.32% | |||
Putnam International | First $500 million | 1.00% | 13,345,775 | 0.92% of average |
Capital Opportunities Fund | Next $500 million | 0.90% | net assets | |
Next $500 million | 0.85% | |||
Next $5 billion | 0.80% | |||
Next $5 billion | 0.775% | |||
Next $5 billion | 0.755% | |||
Next $5 billion | 0.74% | |||
Any excess thereafter | 0.73% | |||
E-5
Amount of Management Fee | ||||
Paid in the Most Recent | ||||
Fiscal Year | Annual Rate at | |||
(after applicable waivers and | which Fees | |||
Fund | Management Fee Schedule | reimbursements, if any) ($) | were Paid | |
Putnam International | First $500 million | 0.80% | 39,425,440 | 0.63% of average |
Equity Fund | Next $500 million | 0.70% | net assets | |
Next $500 million | 0.65% | |||
Next $5 billion | 0.60% | |||
Next $5 billion | 0.575% | |||
Next $5 billion | 0.555% | |||
Next $5 billion | 0.54% | |||
Any excess over $21.5 billion | 0.53% | |||
Putnam International | First $500 million | 0.80% | 5,732,946 | 0.72% of average |
Growth and Income Fund | Next $500 million | 0.70% | net assets | |
Next $500 million | 0.65% | |||
Next $5 billion | 0.60% | |||
Next $5 billion | 0.575% | |||
Next $5 billion | 0.555% | |||
Next $5 billion | 0.54% | |||
Any excess thereafter | 0.53% | |||
Putnam International New | First $500 million | 1.00% | 6,580,631 | 0.87% of average |
Opportunities Fund | Next $500 million | 0.90% | net assets | |
Next $500 million | 0.85% | |||
Next $5 billion | 0.80% | |||
Next $5 billion | 0.775% | |||
Next $5 billion | 0.755% | |||
Next $5 billion | 0.74% | |||
Any excess thereafter | 0.73% | |||
Putnam Investment Grade | The lesser of 0.55%, or | 2,059,634 | 0.91% of average | |
Municipal Trust | First $500 million | 0.65% | weekly net assets | |
Next $500 million | 0.55% | attributable to | ||
Next $500 million | 0.50% | common shares* | ||
Next $5 billion | 0.45% | |||
Next $5 billion | 0.425% | |||
Next $5 billion | 0.405% | |||
Next $5 billion | 0.39% | |||
Any excess thereafter | 0.38% | |||
Putnam Investors Fund | First $500 million | 0.65% | 19,513,803 | 0.49% of average |
Next $500 million | 0.55% | net assets | ||
Next $500 million | 0.50% | |||
Next $5 billion | 0.45% | |||
Next $5 billion | 0.425% | |||
Next $5 billion | 0.405% | |||
Next $5 billion | 0.39% | |||
Any excess over $21.5 billion | 0.38% | |||
Putnam Limited Duration | The lesser of 0.50%, or | 2,392,584 | 0.48% of average | |
Government Income Fund | First $500 million | 0.60% | net assets | |
Next $500 million | 0.50% | |||
Next $500 million | 0.45% | |||
Next $5 billion | 0.40% | |||
Next $5 billion | 0.375% | |||
Next $5 billion | 0.355% | |||
Next $5 billion | 0.34% | |||
Any excess over $21.5 billion | 0.33% | |||
Putnam Managed | The lesser of 0.55%, or | 3,167,820 | 0.84% of average | |
Municipal Income Trust | First $500 million | 0.65% | weekly net assets | |
Next $500 million | 0.55% | attributable to | ||
Next $500 million | 0.50% | common shares* | ||
Next $5 billion | 0.45% | |||
Next $5 billion | 0.425% | |||
Next $5 billion | 0.405% | |||
Next $5 billion | 0.39% | |||
Any excess thereafter | 0.38% | |||
E-6
Amount of Management Fee | ||||
Paid in the Most Recent | ||||
Fiscal Year | Annual Rate at | |||
(after applicable waivers and | which Fees | |||
Fund | Management Fee Schedule | reimbursements, if any) ($) | were Paid | |
Putnam Massachusetts | The lesser of 0.50%, or | 1,675,201 | 0.50% of average | |
Tax Exempt Income Fund | First $500 million | 0.60% | net assets | |
Next $500 million | 0.50% | |||
Next $500 million | 0.45% | |||
Next $5 billion | 0.40% | |||
Next $5 billion | 0.375% | |||
Next $5 billion | 0.355% | |||
Next $5 billion | 0.34% | |||
Any excess over $21.5 billion | 0.33% | |||
Putnam Master | First $500 million | 0.75% | 4,797,486 | 0.70% of average |
Intermediate Income Trust | Next $500 million | 0.65% | weekly net assets | |
Next $500 million | 0.60% | |||
Next $5 billion | 0.55% | |||
Next $5 billion | 0.525% | |||
Next $5 billion | 0.505% | |||
Next $5 billion | 0.49% | |||
Next $5 billion | 0.48% | |||
Next $5 billion | 0.47% | |||
Next $5 billion | 0.46% | |||
Next $5 billion | 0.45% | |||
Next $5 billion | 0.44% | |||
Next $8.5 billion | 0.43% | |||
Any excess thereafter | 0.42% | |||
Putnam Michigan Tax | The lesser of 0.50%, or | 648,238 | 0.50% of average | |
Exempt Income Fund | First $500 million | 0.60% | net assets | |
Next $500 million | 0.50% | |||
Next $500 million | 0.45% | |||
Next $5 billion | 0.40% | |||
Next $5 billion | 0.375% | |||
Next $5 billion | 0.355% | |||
Next $5 billion | 0.34% | |||
Any excess over $21.5 billion | 0.33% | |||
Putnam Mid Cap Value Fund | First $500 million | 0.70% | 5,871,795 | 0.66% of average |
Next $500 million | 0.60% | net assets | ||
Next $500 million | 0.55% | |||
Next $5 billion | 0.50% | |||
Next $5 billion | 0.475% | |||
Next $5 billion | 0.455% | |||
Next $5 billion | 0.44% | |||
Any excess thereafter | 0.43% | |||
Putnam Minnesota Tax | The lesser of 0.50%, or | 538,350 | 0.45% of average | |
Exempt Income Fund | First $500 million | 0.60% | net assets | |
Next $500 million | 0.50% | |||
Next $500 million | 0.45% | |||
Next $5 billion | 0.40% | |||
Next $5 billion | 0.375% | |||
Next $5 billion | 0.355% | |||
Next $5 billion | 0.34% | |||
Any excess over $21.5 billion | 0.33% | |||
Putnam Money Market Fund | First $100 million | 0.50% | 10,390,443 | 0.30% of average |
Next $100 million | 0.40% | net assets | ||
Next $300 million | 0.35% | |||
Next $500 million | 0.325% | |||
Next $500 million | 0.30% | |||
Next $2.5 billion | 0.275% | |||
Next $2.5 billion | 0.25% | |||
Next $5 billion | 0.225% | |||
Next $5 billion | 0.205% | |||
Next $5 billion | 0.19% | |||
Any excess thereafter | 0.18% | |||
E-7
Amount of Management Fee | ||||
Paid in the Most Recent | ||||
Fiscal Year | Annual Rate at | |||
(after applicable waivers and | which Fees | |||
Fund | Management Fee Schedule | reimbursements, if any) ($) | were Paid | |
Putnam Municipal Bond Fund | The lesser of 0.55%, or | 2,290,901 | 0.97% of average | |
First $500 million | 0.65% | weekly net assets | ||
Next $500 million | 0.55% | attributable to | ||
Next $500 million | 0.50% | common shares* | ||
Next $5 billion | 0.45% | |||
Next $5 billion | 0.425% | |||
Next $5 billion | 0.405% | |||
Next $5 billion | 0.39% | |||
Any excess thereafter | 0.38% | |||
Putnam Municipal | The lesser of 0.35%, or | 1,394,604 | 0.66% of average | |
Opportunities Trust^ | First $500 million | 0.45% | weekly net assets | |
Next $500 million | 0.35% | attributable to | ||
Next $500 million | 0.30% | common shares* | ||
Next $5 billion | 0.25% | |||
Next $5 billion | 0.225% | |||
Next $5 billion | 0.205% | |||
Next $5 billion | 0.19% | |||
Any excess thereafter | 0.18% | |||
Putnam New Jersey | The lesser of 0.50%, or | 1,101,027 | 0.50% of average | |
Tax Exempt Income Fund | First $500 million | 0.60% | net assets | |
Next $500 million | 0.50% | |||
Next $500 million | 0.45% | |||
Next $5 billion | 0.40% | |||
Next $5 billion | 0.375% | |||
Next $5 billion | 0.355% | |||
Next $5 billion | 0.34% | |||
Any excess over $21.5 billion | 0.33% | |||
Putnam New | First $500 million | 0.70% | 30,814,799 | 0.53% of average |
Opportunities Fund | Next $500 million | 0.60% | net assets | |
Next $500 million | 0.55% | |||
Next $5 billion | 0.50% | |||
Next $5 billion | 0.475% | |||
Next $5 billion | 0.455% | |||
Next $5 billion | 0.44% | |||
Next $5 billion | 0.43% | |||
Next $5 billion | 0.42% | |||
Next $5 billion | 0.41% | |||
Next $5 billion | 0.40% | |||
Next $5 billion | 0.39% | |||
Next $8.5 billion | 0.38% | |||
Any excess above $55 billion | 0.37% | |||
Putnam New Value Fund | First $500 million | 0.70% | 11,478,217 | 0.59% of average |
Next $500 million | 0.60% | net assets | ||
Next $500 million | 0.55% | |||
Next $5 billion | 0.50% | |||
Next $5 billion | 0.475% | |||
Next $5 billion | 0.455% | |||
Next $5 billion | 0.44% | |||
Any excess thereafter | 0.43% | |||
Putnam New York | The lesser of 0.55%, or | 302,665 | 0.78% of average | |
Investment Grade | First $500 million | 0.65% | weekly net assets | |
Municipal Trust | Next $500 million | 0.55% | attributable to | |
Next $500 million | 0.50% | common shares* | ||
Next $5 billion | 0.45% | |||
Next $5 billion | 0.425% | |||
Next $5 billion | 0.405% | |||
Next $5 billion | 0.39% | |||
Any excess thereafter | 0.38% | |||
E-8
Amount of Management Fee | ||||
Paid in the Most Recent | ||||
Fiscal Year | Annual Rate at | |||
(after applicable waivers and | which Fees | |||
Fund | Management Fee Schedule | reimbursements, if any) ($) | were Paid | |
Putnam New York | The lesser of 0.50%, or | 5,972,705 | 0.50% of average | |
Tax Exempt Income Fund | First $500 million | 0.60% | net assets | |
Next $500 million | 0.50% | |||
Next $500 million | 0.45% | |||
Next $5 billion | 0.40% | |||
Next $5 billion | 0.375% | |||
Next $5 billion | 0.355% | |||
Next $5 billion | 0.34% | |||
Any excess over $21.5 billion | 0.33% | |||
Putnam Ohio Tax Exempt | The lesser of 0.50%, or | 849,434 | 0.49% of average | |
Income Fund | First $500 million | 0.60% | ||
Next $500 million | 0.50% | |||
Next $500 million | 0.45% | |||
Next $5 billion | 0.40% | |||
Next $5 billion | 0.375% | |||
Next $5 billion | 0.355% | |||
Next $5 billion | 0.34% | |||
Any excess over $21.5 billion | 0.33% | |||
Putnam OTC & Emerging | First $500 million | 0.70% | 6,255,747 | 0.60% of average |
Growth Fund | Next $500 million | 0.60% | net assets | |
Next $500 million | 0.55% | |||
Next $5 billion | 0.50% | |||
Next $5 billion | 0.475% | |||
Next $5 billion | 0.455% | |||
Next $5 billion | 0.44% | |||
Any excess thereafter | 0.43% | |||
Putnam Pennsylvania Tax | The lesser of 0.50%, or | 926,507 | 0.50% of average | |
Exempt Income Fund | First $500 million | 0.60% | net assets | |
Next $500 million | 0.50% | |||
Next $500 million | 0.45% | |||
Next $5 billion | 0.40% | |||
Next $5 billion | 0.375% | |||
Next $5 billion | 0.355% | |||
Next $5 billion | 0.34% | |||
Any excess over $21.5 billion | 0.33% | |||
Putnam Premier | First $500 million | 0.75% | 8,927,294 | 0.66% of average |
Income Trust | Next $500 million | 0.65% | weekly net assets | |
Next $500 million | 0.60% | |||
Next $5 billion | 0.55% | |||
Next $5 billion | 0.525% | |||
Next $5 billion | 0.505% | |||
Next $5 billion | 0.49% | |||
Next $5 billion | 0.48% | |||
Next $5 billion | 0.47% | |||
Next $5 billion | 0.46% | |||
Next $5 billion | 0.45% | |||
Next $5 billion | 0.44% | |||
Next $8.5 billion | 0.43% | |||
Any excess thereafter | 0.42% | |||
Putnam Prime Money | 0.20% | 2,183,172 | 0.07% of average | |
Market Fund√ | net assets | |||
Putnam Research Fund† | First $500 million | 0.65% | 5,269,897 | 0.53% of average |
Next $500 million | 0.55% | net assets | ||
Next $500 million | 0.50% | |||
Next $5 billion | 0.45% | |||
Next $5 billion | 0.425% | |||
Next $5 billion | 0.405% | |||
Next $5 billion | 0.39% | |||
Any excess thereafter | 0.38% | |||
E-9
Amount of Management Fee | ||||
Paid in the Most Recent | ||||
Fiscal Year | Annual Rate at | |||
(after applicable waivers and | which Fees | |||
Fund | Management Fee Schedule | reimbursements, if any) ($) | were Paid | |
Putnam RetirementReady | 0.05% | 29,736 | 0.05% of average | |
2010 Fund | net assets | |||
Putnam RetirementReady | 0.05% | 58,932 | 0.05% of average | |
2015 Fund | net assets | |||
Putnam RetirementReady | 0.05% | 64,225 | 0.05% of average | |
2020 Fund | net assets | |||
Putnam RetirementReady | 0.05% | 49,571 | 0.05% of average | |
2025 Fund | net assets | |||
Putnam RetirementReady | 0.05% | 25,310 | 0.05% of average | |
2030 Fund | net assets | |||
Putnam RetirementReady | 0.05% | 6,096 | 0.05% of average | |
2035 Fund | net assets | |||
Putnam RetirementReady | 0.05% | 0†† | 0.00% of average | |
2040 Fund | net assets†† | |||
Putnam RetirementReady | 0.05% | 0†† | 0.00% of average | |
2045 Fund | net assets†† | |||
Putnam RetirementReady | 0.05% | 0†† | 0.00% of average | |
2050 Fund | net assets†† | |||
Putnam RetirementReady | 0.05% | 0†† | 0.00% of average | |
Maturity Fund | net assets†† | |||
Putnam Small Cap | First $500 million | 1.00% | 3,840,676 | 0.88% of average |
Growth Fund | Next $500 million | 0.90% | net assets | |
Next $500 million | 0.85% | |||
Next $5 billion | 0.80% | |||
Next $5 billion | 0.775% | |||
Next $5 billion | 0.755% | |||
Next $5 billion | 0.74% | |||
Any excess thereafter | 0.73% | |||
Putnam Small Cap | First $500 million | 0.80% | 6,409,797** | 0.76% of average |
Value Fund | Next $500 million | 0.70% | net assets | |
Next $500 million | 0.65% | |||
Next $5 billion | 0.60% | |||
Next $5 billion | 0.575% | |||
Next $5 billion | 0.555% | |||
Next $5 billion | 0.54% | |||
Any excess thereafter | 0.53% | |||
Putnam Tax Exempt | The lesser of 0.50%, or | 6,301,826 | 0.50% of average | |
Income Fund | First $500 million | 0.60% | net assets | |
Next $500 million | 0.50% | |||
Next $500 million | 0.45% | |||
Next $5 billion | 0.40% | |||
Next $5 billion | 0.375% | |||
Next $5 billion | 0.355% | |||
Next $5 billion | 0.34% | |||
Any excess thereafter | 0.33% | |||
Putnam Tax Exempt | First $500 million | 0.45% | 390,524 | 0.33% of average |
Money Market Fund | Next $500 million | 0.35% | net assets | |
Next $500 million | 0.30% | |||
Next $5 billion | 0.25% | |||
Next $5 billion | 0.225% | |||
Next $5 billion | 0.205% | |||
Next $5 billion | 0.19% | |||
Any excess thereafter | 0.18% | |||
E-10
Amount of Management Fee | ||||
Paid in the Most Recent | ||||
Fiscal Year | Annual Rate at | |||
(after applicable waivers and | which Fees | |||
Fund | Management Fee Schedule | reimbursements, if any) ($) | were Paid | |
Putnam Tax-Free | The lesser of 0.55%, or | 1,177,515 | 0.61% of average | |
Health Care Fund | First $500 million | 0.65% | weekly net assets | |
Next $500 million | 0.55% | |||
Next $500 million | 0.50% | |||
Next $5 billion | 0.45% | |||
Next $5 billion | 0.425% | |||
Next $5 billion | 0.405% | |||
Next $5 billion | 0.39% | |||
Any excess over $21.5 billion | 0.38% | |||
Putnam Tax-Free | The lesser of 0.50%, or | 7,815,394 | 0.50% of average | |
High Yield Fund | First $500 million | 0.60% | net assets | |
Next $500 million | 0.50% | |||
Next $500 million | 0.45% | |||
Next $5 billion | 0.40% | |||
Next $5 billion | 0.375% | |||
Next $5 billion | 0.355% | |||
Next $5 billion | 0.34% | |||
Any excess thereafter | 0.33% | |||
Putnam Tax Smart | First $500 million | 0.70% | 1,914,939 | 0.70% of average |
Equity Fund® | Next $500 million | 0.60% | net assets | |
Next $500 million | 0.55% | |||
Next $5 billion | 0.50% | |||
Next $5 billion | 0.475% | |||
Next $5 billion | 0.455% | |||
Next $5 billion | 0.44% | |||
Any excess thereafter | 0.43% | |||
Putnam U.S. Government | First $500 million | 0.57% | 6,820,873 | 0.50% of average |
Income Trust | Next $500 million | 0.475% | net assets | |
Next $500 million | 0.4275% | |||
Any excess over $1.5 billion | 0.38% | |||
Putnam Utilities Growth | First $500 million | 0.70% | 3,727,421 | 0.68% of average |
and Income Fund | Next $500 million | 0.60% | net assets | |
Next $500 million | 0.55% | |||
Next $5 billion | 0.50% | |||
Next $5 billion | 0.475% | |||
Next $5 billion | 0.455% | |||
Next $5 billion | 0.44% | |||
Any excess thereafter | 0.43% | |||
Putnam Vista Fund | First $500 million | 0.65% | 14,101,874 | 0.51% of average |
Next $500 million | 0.55% | net assets | ||
Next $500 million | 0.50% | |||
Next $5 billion | 0.45% | |||
Next $5 billion | 0.425% | |||
Next $5 billion | 0.405% | |||
Next $5 billion | 0.39% | |||
Any excess over $21.5 billion | 0.38% | |||
Putnam Voyager Fund | First $500 million | 0.70% | 51,035,233 | 0.51% of average |
Next $500 million | 0.60% | net assets | ||
Next $500 million | 0.55% | |||
Next $5 billion | 0.50% | |||
Next $5 billion | 0.475% | |||
Next $5 billion | 0.455% | |||
Next $5 billion | 0.44% | |||
Next $5 billion | 0.43% | |||
Next $5 billion | 0.42% | |||
Next $5 billion | 0.41% | |||
Next $5 billion | 0.40% | |||
Next $5 billion | 0.39% | |||
Next $8.5 billion | 0.38% | |||
Above $55 billion | 0.37% | |||
E-11
Amount of Management Fee | ||||
Paid in the Most Recent | ||||
Fiscal Year | Annual Rate at | |||
(after applicable waivers and | which Fees | |||
Fund | Management Fee Schedule | reimbursements, if any) ($) | were Paid | |
Putnam VT American | First $500 million | 0.65% | 693,021 | 0.43% of average |
Government Income Fund | Next $500 million | 0.55% | net assets | |
Next $500 million | 0.50% | |||
Next $5 billion | 0.45% | |||
Next $5 billion | 0.425% | |||
Next $5 billion | 0.405% | |||
Next $5 billion | 0.39% | |||
Next $5 billion | 0.38% | |||
Next $5 billion | 0.37% | |||
Next $5 billion | 0.36% | |||
Next $5 billion | 0.35% | |||
Any excess thereafter | 0.34% | |||
Putnam VT Capital | First $500 million | 0.65% | 225,344 | 0.44% of average |
Appreciation Fund | Next $500 million | 0.55% | net assets | |
Next $500 million | 0.50% | |||
Next $5 billion | 0.45% | |||
Next $5 billion | 0.425% | |||
Next $5 billion | 0.405% | |||
Next $5 billion | 0.39% | |||
Next $5 billion | 0.38% | |||
Next $5 billion | 0.37% | |||
Next $5 billion | 0.36% | |||
Next $5 billion | 0.35% | |||
Next $5 billion | 0.34% | |||
Next $8.5 billion | 0.33% | |||
Any excess thereafter | 0.32% | |||
Putnam VT Capital | First $500 million | 0.65% | 222,790 | 0.54% of average |
Opportunities Fund | Next $500 million | 0.55% | net assets | |
Next $500 million | 0.50% | |||
Next $5 billion | 0.45% | |||
Next $5 billion | 0.425% | |||
Next $5 billion | 0.405% | |||
Next $5 billion | 0.39% | |||
Any excess thereafter | 0.38% | |||
Putnam VT Discovery | First $500 million | 0.70% | 105,127 | 0.27% of average |
Growth Fund | Next $500 million | 0.60% | net assets | |
Next $500 million | 0.55% | |||
Next $5 billion | 0.50% | |||
Next $5 billion | 0.475% | |||
Next $5 billion | 0.455% | |||
Next $5 billion | 0.44% | |||
Next $5 billion | 0.43% | |||
Next $5 billion | 0.42% | |||
Next $5 billion | 0.41% | |||
Next $5 billion | 0.40% | |||
Next $5 billion | 0.39% | |||
Next $8.5 billion | 0.38% | |||
Any excess thereafter | 0.37% | |||
Putnam VT Diversified | First $500 million | 0.70% | 2,933,530 | 0.61% of average |
Income Fund | Next $500 million | 0.60% | net assets | |
Next $500 million | 0.55% | |||
Next $5 billion | 0.50% | |||
Next $5 billion | 0.475% | |||
Next $5 billion | 0.455% | |||
Next $5 billion | 0.44% | |||
Any excess thereafter | 0.43% | |||
E-12
Amount of Management Fee | ||||
Paid in the Most Recent | ||||
Fiscal Year | Annual Rate at | |||
(after applicable waivers and | which Fees | |||
Fund | Management Fee Schedule | reimbursements, if any) ($) | were Paid | |
Putnam VT Equity | First $500 million | 0.65% | 1,326,897 | 0.64% of average |
Income Fund | Next $500 million | 0.55% | net assets | |
Next $500 million | 0.50% | |||
Next $5 billion | 0.45% | |||
Next $5 billion | 0.425% | |||
Next $5 billion | 0.405% | |||
Next $5 billion | 0.39% | |||
Any excess thereafter | 0.38% | |||
Putnam VT The George | First $500 million | 0.65% | 3,969,447 | 0.62% of average |
Putnam Fund of Boston | Next $500 million | 0.55% | net assets | |
Next $500 million | 0.50% | |||
Next $5 billion | 0.45% | |||
Next $5 billion | 0.425% | |||
Next $5 billion | 0.405% | |||
Next $5 billion | 0.39% | |||
Any excess thereafter | 0.38% | |||
Putnam VT Global Asset | First $500 million | 0.70% | 2,392,952 | 0.60% of average |
Allocation Fund | Next $500 million | 0.60% | net assets | |
Next $500 million | 0.55% | |||
Next $5 billion | 0.50% | |||
Next $5 billion | 0.475% | |||
Next $5 billion | 0.455% | |||
Next $5 billion | 0.44% | |||
Any excess thereafter | 0.43% | |||
Putnam VT Global | First $500 million | 0.80% | 4,692,325 | 0.78% of average |
Equity Fund | Next $500 million | 0.70% | net assets | |
Next $500 million | 0.65% | |||
Next $5 billion | 0.60% | |||
Next $5 billion | 0.575% | |||
Next $5 billion | 0.555% | |||
Next $5 billion | 0.54% | |||
Any excess thereafter | 0.53% | |||
Putnam VT Growth | First $500 million | 0.65% | 20,729,712 | 0.49% of average |
and Income Fund | Next $500 million | 0.55% | net assets | |
Next $500 million | 0.50% | |||
Next $5 billion | 0.45% | |||
Next $5 billion | 0.425% | |||
Next $5 billion | 0.405% | |||
Next $5 billion | 0.39% | |||
Any excess thereafter | 0.38% | |||
Putnam VT Growth | First $500 million | 0.70% | 243,122 | 0.46% of average |
Opportunities Fund | Next $500 million | 0.60% | net assets | |
Next $500 million | 0.55% | |||
Next $5 billion | 0.50% | |||
Next $5 billion | 0.475% | |||
Next $5 billion | 0.455% | |||
Next $5 billion | 0.44% | |||
Next $5 billion | 0.43% | |||
Any excess thereafter | 0.42% | |||
Putnam VT Health | First $500 million | 0.70% | 2,204,609 | 0.70% of average |
Sciences Fund | Next $500 million | 0.60% | net assets | |
Next $500 million | 0.55% | |||
Next $5 billion | 0.50% | |||
Next $5 billion | 0.475% | |||
Next $5 billion | 0.455% | |||
Next $5 billion | 0.44% | |||
Any excess thereafter | 0.43% | |||
E-13
Amount of Management Fee | ||||
Paid in the Most Recent | ||||
Fiscal Year | Annual Rate at | |||
(after applicable waivers and | which Fees | |||
Fund | Management Fee Schedule | reimbursements, if any) ($) | were Paid | |
Putnam VT High Yield Fund | First $500 million | 0.70% | 3,720,493 | 0.62% of average |
Next $500 million | 0.60% | net assets | ||
Next $500 million | 0.55% | |||
Next $5 billion | 0.50% | |||
Next $5 billion | 0.475% | |||
Next $5 billion | 0.455% | |||
Next $5 billion | 0.44% | |||
Any excess thereafter | 0.43% | |||
Putnam VT Income Fund | First $500 million | 0.65% | 3,498,163 | 0.45% of average |
Next $500 million | 0.55% | net assets | ||
Next $500 million | 0.50% | |||
Next $5 billion | 0.45% | |||
Next $5 billion | 0.425% | |||
Next $5 billion | 0.405% | |||
Next $5 billion | 0.39% | |||
Any excess thereafter | 0.38% | |||
Putnam VT International | First $500 million | 0.80% | 8,271,996 | 0.74% of average |
Equity Fund | Next $500 million | 0.70% | net assets | |
Next $500 million | 0.65% | |||
Next $5 billion | 0.60% | |||
Next $5 billion | 0.575% | |||
Next $5 billion | 0.555% | |||
Next $5 billion | 0.54% | |||
Any excess thereafter | 0.53% | |||
Putnam VT International | First $500 million | 0.80% | 2,838,706 | 0.70% of average |
Growth and Income Fund | Next $500 million | 0.70% | net assets | |
Next $500 million | 0.65% | |||
Next $5 billion | 0.60% | |||
Next $5 billion | 0.575% | |||
Next $5 billion | 0.555% | |||
Next $5 billion | 0.54% | |||
Any excess thereafter | 0.53% | |||
Putnam VT International | First $500 million | 1.00% | 2,485,049 | 0.91% of average |
New Opportunities Fund | Next $500 million | 0.90% | net assets | |
Next $500 million | 0.85% | |||
Next $5 billion | 0.80% | |||
Next $5 billion | 0.775% | |||
Next $5 billion | 0.755% | |||
Next $5 billion | 0.74% | |||
Any excess thereafter | 0.73% | |||
Putnam VT Investors Fund | First $500 million | 0.65% | 3,216,355 | 0.65% of average |
Next $500 million | 0.55% | net assets | ||
Next $500 million | 0.50% | |||
Next $5 billion | 0.45% | |||
Next $5 billion | 0.425% | |||
Next $5 billion | 0.405% | |||
Next $5 billion | 0.39% | |||
Any excess thereafter | 0.38% | |||
Putnam VT Mid Cap | First $500 million | 0.70% | 634,565 | 0.69% of average |
Value Fund | Next $500 million | 0.60% | net assets | |
Next $500 million | 0.55% | |||
Next $5 billion | 0.50% | |||
Next $5 billion | 0.475% | |||
Next $5 billion | 0.455% | |||
Next $5 billion | 0.44% | |||
Any excess thereafter | 0.43% | |||
E-14
Amount of Management Fee | ||||
Paid in the Most Recent | ||||
Fiscal Year | Annual Rate at | |||
(after applicable waivers and | which Fees | |||
Fund | Management Fee Schedule | reimbursements, if any) ($) | were Paid | |
Putnam VT Money | First $500 million | 0.45% | 1,529,264 | 0.40% of average |
Market Fund | Next $500 million | 0.35% | net assets | |
Next $500 million | 0.30% | |||
Next $5 billion | 0.25% | |||
Next $5 billion | 0.225% | |||
Next $5 billion | 0.205% | |||
Next $5 billion | 0.19% | |||
Any excess thereafter | 0.18% | |||
Putnam VT New | First $500 million | 0.70% | 8,663,759 | 0.62% of average |
Opportunities Fund | Next $500 million | 0.60% | net assets | |
Next $500 million | 0.55% | |||
Next $5 billion | 0.50% | |||
Next $5 billion | 0.475% | |||
Next $5 billion | 0.455% | |||
Next $5 billion | 0.44% | |||
Any excess thereafter | 0.43% | |||
Putnam VT New Value Fund | First $500 million | 0.70% | 4,475,605 | 0.67% of average |
Next $500 million | 0.60% | net assets | ||
Next $500 million | 0.55% | |||
Next $5 billion | 0.50% | |||
Next $5 billion | 0.475% | |||
Next $5 billion | 0.455% | |||
Next $5 billion | 0.44% | |||
Any excess thereafter | 0.43% | |||
Putnam VT OTC & | First $500 million | 0.70% | 575,537 | 0.67% of average |
Emerging Growth Fund | Next $500 million | 0.60% | net assets | |
Next $500 million | 0.55% | |||
Next $5 billion | 0.50% | |||
Next $5 billion | 0.475% | |||
Next $5 billion | 0.455% | |||
Next $5 billion | 0.44% | |||
Any excess thereafter | 0.43% | |||
Putnam VT Research Fund | First $500 million | 0.65% | 1,213,099 | 0.65% of average |
Next $500 million | 0.55% | net assets | ||
Next $500 million | 0.50% | |||
Next $5 billion | 0.45% | |||
Next $5 billion | 0.425% | |||
Next $5 billion | 0.405% | |||
Next $5 billion | 0.39% | |||
Any excess thereafter | 0.38% | |||
Putnam VT Small Cap | First $500 million | 0.80% | 6,827,461 | 0.75% of average |
Value Fund | Next $500 million | 0.70% | net assets | |
Next $500 million | 0.65% | |||
Next $5 billion | 0.60% | |||
Next $5 billion | 0.575% | |||
Next $5 billion | 0.555% | |||
Next $5 billion | 0.54% | |||
Any excess thereafter | 0.53% | |||
Putnam VT Utilities | First $500 million | 0.70% | 2,437,187 | 0.67% of average |
Growth and Income Fund | Next $500 million | 0.60% | net assets | |
Next $500 million | 0.55% | |||
Next $5 billion | 0.50% | |||
Next $5 billion | 0.475% | |||
Next $5 billion | 0.455% | |||
Next $5 billion | 0.44% | |||
Any excess thereafter | 0.43% | |||
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Amount of Management Fee | ||||
Paid in the Most Recent | ||||
Fiscal Year | Annual Rate at | |||
(after applicable waivers and | which Fees | |||
Fund | Management Fee Schedule | reimbursements, if any) ($) | were Paid | |
Putnam VT Vista Fund | First $500 million | 0.65% | 3,006,605 | 0.65% of average |
Next $500 million | 0.55% | net assets | ||
Next $500 million | 0.50% | |||
Next $5 billion | 0.45% | |||
Next $5 billion | 0.425% | |||
Next $5 billion | 0.405% | |||
Next $5 billion | 0.39% | |||
Any excess thereafter | 0.38% | |||
Putnam VT Voyager Fund | First $500 million | 0.70% | 11,832,070 | 0.59% of average |
Next $500 million | 0.60% | net assets | ||
Next $500 million | 0.55% | |||
Next $5 billion | 0.50% | |||
Next $5 billion | 0.475% | |||
Next $5 billion | 0.455% | |||
Next $5 billion | 0.44% | |||
Any excess thereafter | 0.43% | |||
* Putnam California Investment Grade Municipal Trust, Putnam High Yield Municipal Trust, Putnam Investment Grade Municipal Trust, Putnam Managed Municipal Income Trust, Putnam Municipal Bond Fund, Putnam Municipal Opportunities Trust, and Putnam New York Investment Grade Municipal Trust are closed-end funds that have issued preferred shares. Management fees for these funds are calculated based on the average net assets of the fund, which includes assets attributable to both common and preferred shares. However, the annual rate stated in this column is determined by attributing the entire amount of the management fee to the common shares, which may cause the stated annual rate in this column to exceed the management fee schedule.
** Amounts for fiscal year ended 02/28/06. Figures for the fund’s most recent fiscal year are not yet available.
*** Due to expense limitations in effect during the fund’s fiscal year ended 02/28/06, Putnam Income Strategies Fund did not pay a management fee to Putnam Management. Figures for the fund’s most recent fiscal year are not yet available.
^ The management fee rate for Putnam Municipal Opportunities Trust represents fees paid only for investment advisory services. As described in this proxy statement, the fund paid Putnam Management separately for administrative services. For the most recent fiscal year, the fund paid an administrative services fee of $662,851 to Putnam Management, totaling 0.32% of the average weekly net assets attributable to common shares. Under the proposed new management contract, the fund will pay a single fee of the lesser of 0.55% of average net assets or, for the first $500 million, 0.65%; next $500 million, 0.55%; next $500 million, 0.50%; next $5 billion, 0.45%; next $5 billion, 0.425%; next $5 billion, 0.405%; next $5 billion, 0.39%; and 0.38% for any excess thereafter.
√ The management fee rate for Putnam Prime Money Market Fund represents fees paid only for investment advisory services. As described in this proxy statement, the fund paid Putnam Management separately for administrative services. For the most recent fiscal year, the fund paid $1,549,992 in administrative services fees to Putnam Management, based on an annual rate of 0.05% of the average net assets of the fund. Under the proposed new management contract, the fund will pay a single fee of 0.25% of average net assets.
† A revised management contract for Putnam Research Fund was approved by shareholders on December 14, 2006 to remove the incentive fee component from the management fee. Under the fund’s previous management contract, the fund paid Putnam Management a quarterly fee consisting of an asset-based component and an incentive component. The asset-based fee was subject to a performance adjustment based on the investment performance of the fund compared to the Standard & Poor’s 500 (S&P 500) composite Stock Price Index. Performance was calculated for these purposes at the beginning of each calendar quarter, for the thirty-six month period immediately preceding such quarter or the life of the fund, if shorter. The applicable asset-based fee was increased or decreased for each calendar quarter by an incentive payment or penalty at the annual rate of 0.01% of the fund’s average net assets for each 1.00% increment by which the fund outperformed or und erper-formed the S&P 500 in excess of 3.00%, subject to a maximum increase or decrease of 0.07% of average net assets. The revised management contract provides for an eighteen-month transition period during which the fund’s fee will be the lesser of (i) the asset-based fee and (ii) the performance-adjusted fee that would have been calculated under the previous contract. The fund is currently in this transition period, which will end on June 30, 2008, after which the asset-based management fee will apply without performance-based adjustments.
†† Due to expense limitations in effect during the most recent fiscal year, Putnam RetirementReady 2040 Fund, Putnam RetirementReady 2045 Fund, Putnam RetirementReady 2050 Fund and Putnam RetirementReady Maturity Fund did not pay management fees to Putnam Management.
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APPENDIX F
Current Sub-Management Contractand Sub-Advisory Contract
PUTNAM FUNDS
AMENDED AND RESTATED SUB-MANAGEMENT CONTRACT
Amended and Restated Sub-Management Contract dated as of December 30, 2006 between PUTNAM INVESTMENT MANAGEMENT, LLC, a Delaware limited liability company (the “Manager”) and PUTNAM INVESTMENTS LIMITED, a company organized under the laws of England and Wales (the “Sub-Manager”), amending and restating in its entirety that certain Sub-Management Contract dated as of January 1, 2006, as amended (the “Prior Agreement”), between the Manager and the Sub-Manager.
WHEREAS, the Manager is the investment manager of each of the investment companies registered under the United States Investment Company Act of 1940, as amended, that are identified on Schedule A hereto, as it may from time to time be amended by the Manager (the “Funds”), and a registered investment adviser under the United States Investment Advisers Act of 1940, as amended;
WHEREAS, the Sub-Manager is licensed as an investment manager by the Financial Services Authority of the United Kingdom (the “FSA”);
WHEREAS, the Manager and the Sub-Manager previously entered into, and now wish to amend and restate, the Prior Agreement; and
WHEREAS, the Manager continues to desire to engage the Sub-Manager from time to time to manage a portion of certain of the Funds:
NOW THEREFORE, in consideration of the mutual covenants herein contained, it is agreed as follows:
1. SERVICES TO BE RENDERED BY SUB-MANAGER
(a) The Sub-Manager, at its expense, will furnish continuously an investment program for that portion of any Fund the management of which is allocated from time to time by the Manager to the Sub-Manager (an “Allocated Sleeve”). The Manager shall, in its sole discretion, determine which Funds will have an Allocated Sleeve and the amount of assets allocated from time to time to each suchAllocated Sleeve; provided that, with respect to any Fund, the Trustees of such Fund must have approved the use of the Sub-Manager prior to the creation of an Allocated Sleeve for such Fund. The Sub-Manager will determine what investments shall be purchased, held, sold or exchanged by any Allocated Sleeve and what portion, if any, of the assets of the Allocated Sleeve shall be held uninvested and shall, on behalf of the Fund, make changes in the Fund’s investments held in such Allocated Sleeve.
(b) The Manager may also, at its discretion, request the Sub-Manager to provide assistance with purchasing and selling securities for any Fund, including the placement of orders with broker-dealers selected in accordance with Section 1(d), even if the Manager has not established an Allocated Sleeve for such Fund.
(c) The Sub-Manager at its expense will furnish all necessary investment and management facilities, including salaries of personnel, required for it to execute its duties faithfully.
(d) The Sub-Manager shall place all orders for the purchase and sale of portfolio investments for any Allocated Sleeve with brokers or dealers selected by the Sub-Manager. In the selection of such brokers or dealers and the placing of such orders, the Sub-Manager shall use its best efforts to obtain for the related Fund the most favorable price and execution available, except to the extent it may be permitted to pay higher brokerage commissions for brokerage and research services as described below. In using its best efforts to obtain for the Fund the most favorable price and execution available, the Sub-Manager, bearing in mind the Fund’s best interests at all times, shall consider all factors it deems relevant, including by way of illustration, price, the size of the transaction, the nature of the market for the security, the amount of the commission, the timing of the transaction taking into account market prices and trends, the reputation, experience and financi al stability of the broker or dealer involved and the quality of service rendered by the broker or dealer in other transactions. Subject to such policies as the Trustees of the Funds may determine, the Sub-Manager shall not be deemed to have acted unlawfully or to have breached any duty created by this Contract or otherwise solely by reason of its having caused a Fund to pay a broker or dealer that provides brokerage and research services to the Manager or the Sub-Manager an amount of commission for effecting a portfolio investment transaction in excess of the amount of commission another broker or dealer would have charged for effecting that
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transaction, if the Sub-Manager determines in good faith that such amount of commission was reasonable in relation to the value of the brokerage and research services provided by such broker or dealer, viewed in terms of either that particular transaction or its overall responsibilities with respect to the Fund and to other clients of the Manager or the Sub-Manager as to which the Manager or the Sub-Manager exercises investment discretion. The Sub-Manager agrees that in connection with purchases or sales of portfolio investments for any Fund, neither the Sub-Manager nor any officer, director, employee or agent of the Sub-Manager shall act as a principal or receive any commission other than as provided in Section 3.
(e) The Sub-Manager shall not be obligated to pay any expenses of or for the Manager or any Fund not expressly assumed by the Sub-Manager pursuant to this Section 1.
(f) In the performance of its duties, the Sub-Manager will comply with the provisions of the Agreement and Declaration of Trust and By-Laws of each applicable Fund and such Fund’s stated investment objectives, policies and restrictions, and will use its best efforts to safeguard and promote the welfare of such Fund and to comply with other policies which the Manager or the Trustees may from time to time determine and shall exercise the same care and diligence expected of the Manager.
2. OTHER AGREEMENTS, ETC.
It is understood that any of the shareholders, Trustees, officers and employees of a Fund may be a shareholder, director, officer or employee of, or be otherwise interested in, the Sub-Manager, and in any person controlled by or under common control with the Sub-Manager, and that the Sub-Manager and any person controlled by or under common control with the Sub-Manager may have an interest in such Fund. It is also understood that the Sub-Manager and any person controlled by or under common control with the Sub-Manager have and may have advisory, management, service or other contracts with other organizations and persons, and may have other interests and business.
3. COMPENSATION.
Except as provided below, the Manager will pay to the Sub-Manager as compensation for the Sub-Manager’s services rendered, a fee, computed and paid quarterly at the annual rate of 0.35% per annum of average aggregate net asset value of the assets in equity Allocated Sleeves and 0.40% per annum of average aggregate net asset value of the assets in fixed-income Allocated Sleeves. Such average net asset value shall be determined by taking an average of all of the determinations of such net asset value during a quarter at the close of business on each business day during such quarter while this Contract is in effect. Such fee shall be payable for each quarter within 30 days after the close of such quarter. The Sub-Manager shall look only to the Manager for payment of its fees. No Fund shall have any responsibility for paying any fees due the Sub-Manager.
With respect to each of Putnam High Income Securities Fund, Putnam Master Intermediate Income Trust and Putnam Premier Income Trust, the Manager will pay to the Sub-Manager as compensation for the Sub-Manager’s services rendered, a fee, computed and paid quarterly at the annual rate of 0.40% of Average Weekly Assets in Allocated Sleeves. “Average Weekly Assets” means the average of the weekly determinations of the difference between the total assets of the Fund (including any assets attributable to leverage for investment purposes) attributable to an Allocated Sleeve and the total liabilities of the Fund (excluding liabilities incurred in connection with leverage for investment purposes) attributable to such Allocated Sleeve, determined at the close of the last business day of each week, for each week which ends during the quarter. Such fee shall be payable for each quarter within 30 days after the close of such quarter. As used in this Section 3, “le verage for investment purposes” means any incurrence of indebtedness the proceeds of which are to be invested in accordance with the Fund’s investment objective. For purposes of calculating Average Weekly Assets, liabilities associated with any instruments or transactions used to leverage the Fund’s portfolio for investment purposes (whether or not such instruments or transactions are “covered” within the meaning of the Investment Company Act of 1940 and the rules and regulations thereunder, giving effect to any interpretations of the Securities and Exchange Commission and its staff) are not considered liabilities. For purposes of calculating Average Weekly Assets, the total assets of the Fund will be deemed to include (a) any proceeds from the sale or transfer of an asset (the “Underlying Asset”) of the Fund to a counterparty in a reverse repurchase or dollar roll transaction and (b) the value of such Underlying Asset as of the relevant measuring date.
In the event that the Manager’s management fee from any of Putnam High Income Securities Fund, Putnam Master Intermediate Income Trust or Putnam Premier Income Trust is reduced pursuant to the Amended and Restated Management Contract between such Fund and the Manager because during any Measurement Period (as defined below) the amount of interest payments and fees with respect to indebtedness or other obligation of the Fund incurred for investment leverage purposes, plus
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additional expenses attributable to any such leverage for investment purposes, exceeds the portion of the Fund’s net income and net short-term capital gains (but not long-term capital gains) accruing during such Measurement Period as a result of the fact that such indebtedness or other obligation was outstanding during the Measurement Period, the fee payable to the Sub-Manager with respect to such Fund shall be reduced in the same proportion as the fee paid to the Manager with respect to such Fund is so reduced. “Measurement Period” shall be any period for which payments of interest or fees (whether designated as such or implied) are payable in connection with any indebtedness or other obligation of the Fund incurred for investment purposes.
If the Sub-Manager shall serve for less than the whole of a quarter, the foregoing compensation shall be prorated.
4. ASSIGNMENT TERMINATES THIS CONTRACT; AMENDMENTS OF THIS CONTRACT.
This Contract shall automatically terminate without the payment of any penalty, in the event of its assignment; and this Contract shall not be amended with respect to any Allocated Sleeve unless such amendment be approved at a meeting by the vote, cast in person at a meeting called for the purpose of voting on such approval, of a majority of the Trustees of the related Fund who are not interested persons of such Fund or of the Manager.
5. EFFECTIVE PERIOD AND TERMINATION OF THIS CONTRACT.
This Contract shall become effective upon its execution, and shall remain in full force and effect continuously thereafter (unless terminated automatically as set forth in Section 4) until terminated as follows:
(a) Either party hereto or, with respect to any Allocated Sleeve, the related Fund may at any time terminate this Contract by not more than sixty days’ nor less than thirty days’ written notice delivered or mailed by registered mail, postage prepaid, to the other party, or
(b) With respect to any Allocated Sleeve, if (i) the Trustees of the related Fund or the shareholders by the affirmative vote of a majority of the outstanding shares of such Fund, and (ii) a majority of the Trustees of such Fund who are not interested persons of such Fund or of the Manager, by vote cast in person at a meeting called for the purpose of voting on such approval, do not specifically approve at least annually the continuance of this Contract, then this Contract shall automatically terminate at the close of business on the anniversary of its execution, or upon the expiration of one year from the effective date of the last such continuance, whichever is later, or
(c) With respect to any Allocated Sleeve, automatically upon termination of the Manager’s investment management contract with the related Fund.
Action by a Fund under (a) above may be taken either (i) by vote of a majority of its Trustees, or (ii) by the affirmative vote of a majority of the outstanding shares of such Fund.
Termination of this Contract pursuant to this Section 5 will be without the payment of any penalty.
6. CERTAIN DEFINITIONS.
For the purposes of this Contract, the “affirmative vote of a majority of the outstanding shares of a Fund” means the affirmative vote, at a duly called and held meeting of shareholders of such Fund, (a) of the holders of 67% or more of the shares of such Fund present (in person or by proxy) and entitled to vote at such meeting, if the holders of more than 50% of the outstanding shares of such Fund entitled to vote at such meeting are present in person or by proxy, or (b) of the holders of more than 50% of the outstanding shares of such Fund entitled to vote at such meeting, whichever is less.
For the purposes of this Contract, the terms “affiliated person,” “control,” “interested person” and “assignment” shall have their respective meanings defined in the United States Investment Company Act of 1940 and the Rules and Regulations thereunder (the “1940 Act”), subject, however, to such exemptions as may be granted by the Securities and Exchange Commission under said Act; the term “specifically approve at least annually” shall be construed in a manner consistent with the 1940 Act, and the Rules and Regulations thereunder; and the term “brokerage and research services” shall have the meaning given in the United States Securities Exchange Act of 1934 and the Rules and Regulations thereunder.
7. NON-LIABILITY OF SUB-MANAGER.
In the absence of willful misfeasance, bad faith or gross negligence on the part of the Sub-Manager, or reckless disregard of its obligations and duties hereunder, the Sub-Manager shall not be subject to any liability to the Manager, any Fund or to any shareholder of any Fund, for any act or omission in the course of, or connected with, rendering services hereunder.
8. ADDITIONAL PROVISIONS
(a) The Sub-Manager represents that it is regulated by the FSA in the conduct of its investment business. The Sub-Manager has in operation a written procedure in accordance with FSA rules for the effective consideration and proper handling of complaints from customers. Any
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complaint by the Manager or any Fund should be sent to the Compliance Officer of the Sub-Manager. The Manager and any Fund is also entitled to make any complaints about the Sub-Manager to the Financial Ombudsman Service established by the FSA. The Manager and any Fund may also request a statement describing its rights to compensation in the event of the Sub-Manager’s inability to meet its liabilities.
(b) The Manager represents that it and each Fund are “Intermediate Customers” in the meaning of FSA rules. (c) Although each Fund is not a party hereto and shall have no responsibility for the Manager’s or the Sub-Manager’s obligations hereunder, each Fund is named as explicit third party beneficiary of the parties’ agreements hereunder.
IN WITNESS WHEREOF, PUTNAM INVESTMENTS LIMITED and PUTNAM INVESTMENT MANAGEMENT, LLC have each caused this instrument to be signed in duplicate on its behalf by an officer duly authorized, all as of the day and year first above written.
PUTNAM INVESTMENTS LIMITED
By: /s/ Jeffrey F. Peters
Name: Jeffrey F. Peters
PUTNAM INVESTMENT
MANAGEMENT, LLC
By: /s/ James P. Pappas
Name: James P. Pappas
Schedule A
(Updated through December 30, 2006)
Putnam Diversified Income Trust
Putnam VT Diversified Income Fund
Putnam Europe Equity Fund
Putnam Global Equity Fund
Putnam VT Global Equity Fund
Putnam Global Income Trust
Putnam Global Natural Resources Fund
Putnam High Yield Advantage Fund
Putnam High Yield Trust
Putnam VT High Yield Fund
Putnam International Capital Opportunities Fund
Putnam International Equity Fund
Putnam VT International Equity Fund
Putnam International New Opportunities Fund
Putnam VT International New Opportunities Fund
Putnam International Growth and Income Fund
Putnam VT International Growth and Income Fund
Putnam Research Fund
Putnam VT Research Fund
Putnam Utilities Growth and Income Fund
Putnam VT Utilities Growth and Income Fund
Putnam High Income Securities Fund
Putnam Master Intermediate Income Trust
Putnam Premier Income Trust
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PUTNAM FUNDS
SUB-ADVISORY CONTRACT
Sub-Advisory Contract dated as of July 14, 2006 between and among PUTNAM INVESTMENT MANAGEMENT, LLC, a Delaware limited liability company (the “Manager”), PUTNAM INVESTMENTS LIMITED, a company organized under the laws of England and Wales (“PIL”), and THE PUTNAM ADVISORY COMPANY, LLC, a Delaware limited liability company (the “Sub-Advisor”).
WHEREAS, the Manager is the investment manager of each of the investment companies registered under the United States Investment Company Act of 1940, as amended, that are identified on Schedule A hereto, as it may from time to time be amended by the Manager (the “Funds”), and a registered investment adviser under the United States Investment Advisers Act of 1940, as amended;
WHEREAS, PIL is a registered investment adviser under the United States Investment Advisers Act of 1940, as amended, is licensed as an investment manager by the Financial Services Authority of the United Kingdom (the “FSA”) and is a sub-manager of each of the Funds pursuant to that certain Amended and Restated Sub-Management Contract dated as of January 1, 2006 (the “PIL Sub-Management Contract”), between the Manager and PIL;
WHEREAS, the Manager has contracted with PIL for the management of certain portions of each of the Funds (each, a “PIL-Advised Sleeve”);
WHEREAS, the Sub-Advisor is a registered investment adviser under the United States Investment Advisers Act of 1940, as amended, and is an investment adviser registered with the Kanto Local Finance Bureau to provide non-discretionary investment advice in Japan;
WHEREAS, the Manager and PIL desire to engage the Sub-Advisor from time to time to provide non-discretionary investment advice with respect to a portion of certain of the Funds:
NOW THEREFORE, in consideration of the mutual covenants herein contained, it is agreed as follows:
1. SERVICES TO BE RENDERED BY SUB-ADVISOR (a) The Sub-Advisor, at its expense, will from time to time furnish to either PIL or the Manager recommendations to purchase, hold, sell or exchange investments, securities and assets (the “Assets”) in that portion of any Fund for which the Manager or PIL contracts for such services to be provided by the Sub-Advisor (an “Allocated Sleeve”). The Manager or PIL, as the case may be, shalldetermine whether to execute each recommendation of the Sub-Advisor provided hereunder. The Manager shall determine which Funds will have an Allocated Sleeve; provided that, with respect to any Fund, the Trustees of such Fund must have approved the use of the Sub-Advisor prior to the creation of an Allocated Sleeve for such Fund. The Manager, and in the case of a PIL-Advised Sleeve, PIL shall (at all times in the case of PIL subject to the oversight and supervision of the Manager), determine the am ount of assets allocated from time to time to each such Allocated Sleeve.
(b) The Sub-Advisor at its expense will furnish all necessary investment and management facilities, including salaries of personnel, required for it to execute its duties faithfully.
(c) The Sub-Advisor shall not be obligated to pay any expenses of or for the Manager, PIL or any Fund not expressly assumed by the Sub-Advisor pursuant to this Section 1.
(d) The Manager may, and in the case of a PIL-Advised Sleeve, PIL may, each at its discretion, also request the Sub-Advisor to perform certain services set forth in Section 1(a) with respect to any portion of a Fund, even if the Manager or PIL, as the case may be, has not established an Allocated Sleeve with respect to that portion of the Fund.
(e) In the performance of its duties, the Sub-Advisor will comply with the provisions of the Agreement and Declaration of Trust and By-Laws of each applicable Fund and such Fund’s stated investment objectives, policies and restrictions, and will use its best efforts to safeguard and promote the welfare of such Fund and to comply with other policies which the Manager, PIL or the Trustees may from time to time determine and shall exercise the same care and diligence expected of the Manager and PIL.
2. OTHER AGREEMENTS, ETC.
It is understood that any of the shareholders, Trustees, officers and employees of a Fund may be a shareholder, director, officer or employee of, or be otherwise interested in, the Sub-Advisor, and in any person controlled by or under common control with the Sub-Advisor, and that the Sub-Advisor and any person controlled by or under common control with the Sub-Advisor may have an interest in such Fund. It is also understood that the Sub-Advisor and any person controlled by or under common control with the Sub-Advisor have and may have advisory, management, service or other contracts with other organizations and persons, and may have other interests and business.
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3. COMPENSATION.
Except as provided below, the Manager or PIL, as the case may be, will pay to the Sub-Advisor as compensation for the Sub-Advisor’s services rendered a fee, computed and paid quarterly at the annual rate of 0.10% per annum of average net asset value of the assets in each Allocated Sleeve. Such average net asset value shall be determined by taking an average of all of the determinations of such net asset value during a quarter at the close of business on each business day during such quarter while this Contract is in effect. Such fee shall be payable for each quarter within 30 days after the close of such quarter. The Sub-Advisor shall look only to the Manager or PIL, as the case may be, for payment of its fees. No Fund shall have any responsibility for paying any fees due the Sub-Advisor.
If the Sub-Advisor shall serve for less than the whole of a quarter, the foregoing compensation shall be prorated.
4. ASSIGNMENT TERMINATES THIS CONTRACT; AMENDMENTS OF THIS CONTRACT.
This Contract shall automatically terminate, without the payment of any penalty, in the event of its assignment; and this Contract shall not be amended with respect to any Allocated Sleeve unless such amendment be approved at a meeting by the vote, cast in person at a meeting called for the purpose of voting on such approval, of a majority of the Trustees of the related Fund who are not interested persons of such Fund or of the Manager.
5. EFFECTIVE PERIOD AND TERMINATION OF THIS CONTRACT.
This Contract shall become effective upon its execution, and shall remain in full force and effect continuously thereafter (unless terminated automatically as set forth in Section 4) until terminated as follows:
(a) Any party hereto or, with respect to any Allocated Sleeve, the related Fund may at any time terminate this Contract by not more than sixty days’ nor less than thirty days’ written notice delivered or mailed by registered mail, postage prepaid, to the other parties, or
(b) With respect to any Allocated Sleeve, if (i) the Trustees of the related Fund or the shareholders by the affirmative vote of a majority of the outstanding shares of such Fund, and (ii) a majority of the Trustees of such Fund who are not interested persons of such Fund or of the Manager, by vote cast in person at a meeting called for the purpose of voting on such approval, do not specifically approve at least annually the continuance of this Contract, then this Contract shall automatically terminate at theclose of business on the anniversary of its execution, or upon the expiration of one year from the effective date of the last such continuance, whichever is later, or
(c) With respect to any Allocated Sleeve, automatically upon termination of the Manager’s investment management contract with the related Fund, or with respect to any Allocated Sleeve for which PIL has contracted with the Sub-Advisor to provide services under this Contract, automatically upon termination of the PIL Sub-Management Contract.
Action by a Fund under (a) above may be taken either (i) by vote of a majority of its Trustees, or (ii) by the affirmative vote of a majority of the outstanding shares of such Fund.
Termination of this Contract pursuant to this Section 5 will be without the payment of any penalty.
6. CERTAIN DEFINITIONS.
For the purposes of this Contract, the “affirmative vote of a majority of the outstanding shares of a Fund” means the affirmative vote, at a duly called and held meeting of shareholders of such Fund, (a) of the holders of 67% or more of the shares of such Fund present (in person or by proxy) and entitled to vote at such meeting, if the holders of more than 50% of the outstanding shares of such Fund entitled to vote at such meeting are present in person or by proxy, or (b) of the holders of more than 50% of the outstanding shares of such Fund entitled to vote at such meeting, whichever is less.
For the purposes of this Contract, the terms “affiliated person,” “control,” “interested person” and “assignment” shall have their respective meanings defined in the United States Investment Company Act of 1940 and the Rules and Regulations thereunder (the “1940 Act”), subject, however, to such exemptions as may be granted by the Securities and Exchange Commission under said Act; and the term “specifically approve at least annually” shall be construed in a manner consistent with the 1940 Act, and the Rules and Regulations thereunder.
7. NON-LIABILITY OF SUB-ADVISOR.
In the absence of willful misfeasance, bad faith or gross negligence on the part of the Sub-Advisor, or reckless disregard of its obligations and duties hereunder, the Sub-Advisor shall not be subject to any liability to the Manager, PIL, any Fund or to any shareholder of any Fund, for any act or omission in the course of, or connected with, rendering services hereunder.
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8. ADDITIONAL PROVISIONS
(a) PIL represents that it is regulated by the FSA in the conduct of its investment business. PIL has in operation a written procedure in accordance with FSA rules for the effective consideration and proper handling of complaints from customers. Any complaint by the Manager or any Fund should be sent to the Compliance Officer of PIL. The Manager and any Fund is also entitled to make any complaints about PIL to the Financial Ombudsman Service established by the FSA. The Manager and any Fund may also request a statement describing its rights to compensation in the event of PIL’s inability to meet its liabilities.
(b) The Manager represents that it and each Fund are “Intermediate Customers” in the meaning of FSA rules.
(c) Although each Fund is not a party hereto and shall have no responsibility for the Manager’s, PIL’s or the Sub-Advisor’s obligations hereunder, each Fund is named as explicit third party beneficiary of the parties’ agreements hereunder.
In witness whereof, PUTNAM INVESTMENT MANAGEMENT, LLC, PUTNAM INVESTMENTS LIMITED and THE PUTNAM ADVISORY COMPANY, LLC have each caused this instrument to be signed on its behalf by an officer duly authorized, all as of the day and year first above written.
PUTNAM INVESTMENT
MANAGEMENT, LLC
By: /s/ James P. Pappas
Name: James P. Pappas
PUTNAM INVESTMENTS LIMITED
By: /s/ Simon L. Davis
Name: Simon L. Davis
THE PUTNAM ADVISORY
COMPANY, LLC
By: /s/ Robert R. Leveille
Name: Robert R. Leveille
Putnam International Equity Fund
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APPENDIX G
Description of ContractApproval Process
General conclusions
The Board of Trustees of the Putnam funds oversees the management of each fund and, as required by law, determines annually whether to approve the continuance of the funds’ management contracts with Putnam Management, and with respect to certain funds, the administrative services contracts with Putnam Management or the sub-management contracts between Putnam Management’s affiliate, Putnam Investments Limited (“PIL”), and Putnam Management. In this regard, the Board of Trustees, with the assistance of its Contract Committee consisting solely of Trustees who are not “interested persons” (as such term is defined in the Investment Company Act of 1940, as amended) of the Putnam funds (the “Independent Trustees”), requests and evaluates all information it deems reasonably necessary under the circumstances. Over the course of several months ending in June 2006, the Contract Committee met four times to consider the information provided by Putnam Management and other information developed with the assistance of the Board’s independent counsel and independent staff. The Contract Committee reviewed and discussed key aspects of this information with all of the Independent Trustees. Upon completion of this review, the Contract Committee recommended, and the Independent Trustees approved, the continuance of the funds’ management contracts — and with respect to certain funds, the administrative services contracts or the sub-management contracts — effective July 1, 2006. (With respect to certain funds that may be sub-managed from time to time by PIL, because PIL is an affiliate of Putnam Management and Putnam Management remains fully responsible for all services provided by PIL, the Trustees have not evaluated PIL as a separate entity, and all subsequent references to Putnam Management below include reference to PIL as necessary or appropriate in the context.)
This approval was based on the following conclusions:
*That the fee schedules in effect for the funds (which, for those funds with administrative services contracts, included fees paid under such contracts) represented reasonable compensation in light of the nature and quality of the services being provided to the funds, the fees paid by competitive funds and the costs incurred by Putnam Management in providing such services, and
*That such fee schedules represented an appropriate sharing between the funds’ shareholders and Putnam Management of such economies of scale as may exist in the management of the funds at current asset levels.
These conclusions were based on a comprehensive consideration of all information provided to the Trustees and were not the result of any single factor. Some of the factors that figured particularly in the Trustees’ deliberations and how the Trustees considered these factors are described below, although individual Trustees may have evaluated the information presented differently, giving different weights to various factors. It is also important to recognize that the fee arrangements for the funds are the result of many years of review and discussion between the Independent Trustees and Putnam Management, that certain aspects of the arrangements may receive greater scrutiny in some years than others, and that the Trustees’ conclusions may be based, in part, on their consideration of these same arrangements in prior years.
Management fee schedules and categories; total expenses
The Trustees reviewed the management (and administrative services, if applicable) fee schedules in effect for all Putnam funds, including fee levels and breakpoints, and the assignment of funds to particular fee categories. In reviewing fees and expenses, the Trustees generally focused their attention on material changes in circumstances — for example, changes in a fund’s size or investment style, changes in Putnam Management’s operating costs, or changes in competitive practices in the mutual fund industry — that suggest that consideration of fee changes might be warranted. The Trustees concluded that the circumstances did not warrant changes to the management (and administrative services, if applicable) fee structures of the funds, which had been carefully developed over the years, re-examined on many occasions and adjusted where appropriate. The Trustees focused on two areas of particular interest, as discussed further below:
*Competitiveness.The Trustees reviewed comparative fee and expense information for competitive funds, which indicated that, in a custom peer group of competitive funds selected by Lipper Inc., each Putnam fund ranked in particular percentiles in management fees and in total expenses (less any applicable 12b-1 fees for open-end funds, and excluding charges and expenses at the insurance company separate account level for the funds of Putnam Variable Trust) as of December 31, 2005 (the first percentile being the least expensive funds and the 100th percentile being the most expensive funds). (The comparative fee and expense information for each
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Putnam RetirementReady Fund excluded the fees and expenses of the underlying Putnam funds in which a Putnam RetirementReady Fund invested, as well as the fees and expenses of the underlying funds in which other funds in the Lipper peer group invested.) With respect to the open-end funds, the Trustees noted that expense ratios for a number of Putnam funds, which show the percentage of fund assets used to pay for management and administrative services, distribution (12b-1) fees and other expenses, had been increasing recently as a result of declining net assets and the natural operation of fee breakpoints. With respect to all funds, the Trustees expressed their intention to monitor the funds’ percentile rankings in management fees and in total expenses to ensure that fees and expenses of the funds continue to meet evolving competitive standards.
With respect to the open-end funds, the Trustees noted that the expense ratio increases described above were currently being controlled by expense limitations implemented in January 2004 and which Putnam Management, in consultation with the Contract Committee, has committed to maintain at least through 2007. These expense limitations give effect to a commitment by Putnam Management that the expense ratio of each fund would be no higher than the average expense ratio of the competitive funds included in the fund’s relevant Lipper universe (exclusive of any applicable 12b-1 charges in each case). The Trustees observed that this commitment to limit fund expenses has served shareholders well since its inception. In order to ensure that the expenses of the Putnam funds continue to meet evolving competitive standards, the Trustees requested, and Putnam Management agreed, to implement an additional expense limitation for certain open-end funds for the twelve months beginni ng January 1, 2007 equal to the average expense ratio (exclusive of 12b-1 charges) of a custom peer group of competitive funds selected by Lipper based on the size of the fund. This additional expense limitation will be applied to those open-end funds that had above-average expense ratios (exclusive of 12b-1 charges) based on the Lipper custom peer group data for the period ended December 31, 2005.
*Economies of scale.Most funds currently have the benefit of breakpoints in their management fees that provide shareholders with significant economies of scale, which means that the effective management fee rate of a fund (as a percentage of fund assets) declines as a fund grows in size and crosses specified asset thresholds. Conversely, as a fund shrinks in size — as has been the case for many Putnam open-end funds in recent years — these breakpoints result in increasing fee levels.
In recent years, the Trustees have examined the operation of the existing breakpoint structure during periods of both growth and decline in asset levels. The Trustees concluded that the fee schedules in effect for the funds represented an appropriate sharing of economies of scale at current asset levels. In reaching this conclusion, the Trustees considered the Contract Committee’s stated intent to continue to work with Putnam Management to plan for an eventual resumption in the growth of assets, including a study of potential economies that might be produced under various growth assumptions.
In connection with their review of the management fees and total expenses of the Putnam funds, the Trustees also reviewed the costs of the services to be provided and profits to be realized by Putnam Management and its affiliates from the relationship with the funds. This information included trends in revenues, expenses and profitability of Putnam Management and its affiliates relating to the investment management and distribution services provided to the funds. In this regard, the Trustees also reviewed an analysis of Putnam Management’s revenues, expenses and profitability with respect to the funds’ management contracts, allocated on a fund-by-fund basis. Because many of the costs incurred by Putnam Management in managing the funds are not readily identifiable to particular funds, the Trustees observed that the methodology for allocating costs is an important factor in evaluating Putnam Management’s costs and profitability, both as to the Putnam funds i n the aggregate and as to individual funds. The Trustees reviewed Putnam Management’s cost allocation methodology with the assistance of independent consultants and concluded that this methodology was reasonable and well-considered.
Investment performance
The quality of the investment process provided by Putnam Management represented a major factor in the Trustees’ evaluation of the quality of services provided by Putnam Management under the funds’ management contracts. The Trustees were assisted in their review of the Putnam funds’ investment process and performance by the work of the Investment Process Committee of the Trustees and the Investment Oversight Committees of the Trustees, which meet on a regular monthly basis with the funds’ portfolio teams throughout the year. The Trustees concluded that Putnam Management generally provides a high-quality investment process — as measured by the experience and skills of the individuals assigned to the management of fund portfolios, the resources made available to such personnel, and in general the ability of Putnam Management to attract and retain high-quality personnel — but also recognize that this does not guarantee favorable investment resul ts for every fund in every time period. The Trustees considered the investment performance of each fund over multiple time periods and considered information
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comparing each fund’s performance with various benchmarks and with the performance of competitive funds.
The Trustees noted the satisfactory investment performance of many Putnam funds. They also noted the disappointing investment performance of certain funds in recent years and discussed with senior management of Putnam Management the factors contributing to this underperformance and actions being taken to improve performance. The Trustees recognized that, in recent years, Putnam Management has made significant changes in its investment personnel and processes and in the fund product line to address areas of underperfor-mance. In particular, they noted the important contributions of Putnam Management’s leadership in attracting, retaining and supporting high-quality investment professionals and in systematically implementing an investment process that seeks to merge the best features of fundamental and quantitative analysis. The Trustees indicated their intention to continue to monitor performance trends to assess the effectiveness of these changes and to evaluate whet her additional changes to address areas of underperformance are warranted.
In the case of each open-end fund, the Trustees considered that each fund’s class A (class I, in the case of Putnam Prime Money Market Fund, and class IA in the case of Putnam Variable Trust) share cumulative total return performance at net asset value was in particular percentiles of its Lipper Inc. peer group for the one-, three- and five-year periods ended March 31, 2006 (the first percentile being the best performing funds and the 100th percentile being the worst performing funds). In the case of each closed-end fund, the Trustees considered the same Lipper peer group information for the fund’s common share cumulative total return performance at net asset value. In the case of tax-exempt open-end and closed-end funds, the funds’ total return performance was compared against the Lipper peer group performance information using tax-adjusted performance to recognize the different federal income tax treatment for capital gains distributions and exempt-inter est distributions.
As a general matter, the Trustees concluded that cooperative efforts between the Trustees and Putnam Management represent the most effective way to address investment performance problems. The Trustees noted that investors in the Putnam funds have, in effect, placed their trust in the Putnam organization, under the oversight of the funds’ Trustees, to make appropriate decisions regarding the management of the funds. Based on the responsiveness of Putnam Management in the recent past to Trustee concerns about investment performance, the Trustees concluded that it is preferable to seek change within Putnam Management to address performance shortcomings. In the Trustees’ view, the alternative of terminating a management contract and engaging a new investment adviser for an underperforming fund would entail significant disruptionsand would not provide any greater assurance of improved investment performance.
Brokerage and soft-dollar allocations; other benefits
The Trustees considered various potential benefits that Putnam Management may receive in connection with the services it provides under the management contracts with the funds. These include benefits related to brokerage and soft-dollar allocations, whereby a portion of the commissions paid by a fund for brokerage may be used to acquire research services that may be useful to Putnam Management in managing the assets of the fund and of other clients. The Trustees indicated their continued intent to monitor the potential benefits associated with the allocation of fund brokerage to ensure that the principle of seeking “best price and execution” remains paramount in the portfolio trading process.
The Trustees’ annual review of the funds’ management contracts also included the review of the custodian and investor servicing agreements with Putnam Fiduciary Trust Company, which agreements provide benefits to an affiliate of Putnam Management. In the case of the open-end funds, the Trustees’ annual review of the funds’ management contracts also included the review of the funds’ distributor’s contracts and distribution plans with Putnam Retail Management Limited Partnership, which contracts and plans also provide benefits to an affiliate of Putnam Management.
Comparison of retail and institutional fee schedules
The information examined by the Trustees as part of their annual contract review has included for many years information regarding fees charged by Putnam Management and its affiliates to institutional clients such as defined benefit pension plans, college endowments, etc. This information included comparison of such fees with fees charged to the funds, as well as a detailed assessment of the differences in the services provided to these two types of clients. The Trustees observed, in this regard, that the differences in fee rates between institutional clients and the funds are by no means uniform when examined by individual asset sectors, suggesting that differences in the pricing of investment management services to these types of clients reflect to a substantial degree historical competitive forces operating in separate market places. The Trustees considered the fact that fee rates across all asset sectors are higher on average for funds than for institutional clients, as well as the differences between the services that Putnam Management provides to the Putnam funds and those that it provides to institutional clients of the firm, but did not rely on these comparisons to any significant extent in concluding that the management fees paid by the funds are reasonable.
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Approval of the Sub-Advisory Contract among PutnamManagement, Putnam Investments Limited and ThePutnam Advisory Company, LLC for PutnamInternational Equity Fund
In July 2006, the Trustees approved a sub-advisory contract among Putnam Management, PIL and The Putnam Advisory Company, LLC (“PAC”) for Putnam International Equity Fund. The Contract Committee reviewed information provided by Putnam Management and, upon completion of this review, recommended, and the Independent Trustees approved, Putnam International Equity Fund’s sub-advisory contract with PAC, effective July 14, 2006.
The Trustees considered numerous factors they believe relevant in approving Putnam International Equity Fund’s sub-advisory contract with PAC, including Putnam Management’s belief that the interest of shareholders would be best served by using Putnam’s Tokyo investment professionals who are employed by PAC to provide investment recommendations for certain equity sleeves of Putnam International Equity Fund that are currently managed by Putnam Management or PIL, and PAC’s expertise with respect to Asian markets. The Trustees also considered that Japanese securities laws require a sub-advisory relationship among Putnam Management, PIL and PAC in order for Putnam’s Tokyo investment professionals to provide investment recommendations for Putnam International Equity Fund. The Trustees noted that Putnam Management or PIL, and not Putnam International Equity Fund, would pay the sub-management fee to PAC for its services and that the sub-management contra ct with PAC will not reduce the nature, quality or overall level of service provided to Putnam International Equity Fund.
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APPENDIX H
Other Similar Funds Advised by Putnam Management
The following table contains certain information regarding funds for which Putnam Management provides investment advisory services and that may have similar investment objectives and policies to your fund.
Has | ||||||
Amount of | compensation | |||||
Management | been waived, | |||||
Fee Paid in the | reduced or | |||||
Most Recent | otherwise | |||||
Fiscal Year | agreed to be | |||||
Net Assets | (after applicable | reduced | ||||
as of | waivers and | under any | Current | |||
December 31, | reimbursements, | applicable | Investment | |||
Fund | 2006 ($) | Current Management Fee Schedule | if any) ($) | contract? | Objective | |
Putnam American | 707,703,667 | First $500 million | 0.65% | 4,373,306 | Yes | High current income |
Government | Next $500 million | 0.55% | with preservation of | |||
Income Fund | Next $500 million | 0.50% | capital as its | |||
Next $5 billion | 0.45% | secondary objective. | ||||
Next $5 billion | 0.425% | |||||
Next $5 billion | 0.405% | |||||
Next $5 billion | 0.39% | |||||
Any excess thereafter | 0.38% | |||||
Putnam AMT-Free | 327,849,054 | The lesser of 0.50%, or | 1,790,563 | Yes | High current income | |
Insured Municipal | First $500 million | 0.60% | exempt from federal | |||
Fund | Next $500 million | 0.50% | income tax. | |||
Next $500 million | 0.45% | |||||
Next $5 billion | 0.40% | |||||
Next $5 billion | 0.375% | |||||
Next $5 billion | 0.355% | |||||
Next $5 billion | 0.34% | |||||
Any excess thereafter | 0.33% | |||||
Putnam Arizona | 89,150,402 | The lesser of 0.50%, or | 396,902 | Yes | To provide as high a | |
Tax Exempt | First $500 million | 0.60% | level of current | |||
Income Fund | Next $500 million | 0.50% | income exempt | |||
Next $500 million | 0.45% | from federal income | ||||
Next $5 billion | 0.40% | tax and personal | ||||
Next $5 billion | 0.375% | income tax (if any) | ||||
Next $5 billion | 0.355% | of the state of | ||||
Next $5 billion | 0.34% | Arizona as Putnam | ||||
Any excess over $21.5 billion | 0.33% | Management | ||||
believes is consistent | ||||||
with preservation | ||||||
of capital. | ||||||
Putnam Asset | 2,109,899,934 | First $500 million | 0.70% | 10,841,716 | Yes | Total return. |
Allocation: | Next $500 million | 0.60% | ||||
Balanced Portfolio | Next $500 million | 0.55% | ||||
Next $5 billion | 0.50% | |||||
Next $5 billion | 0.475% | |||||
Next $5 billion | 0.455% | |||||
Next $5 billion | 0.44% | |||||
Any excess over $21.5 billion | 0.43% | |||||
Putnam Asset | 985,940,217 | First $500 million | 0.70% | 5,759,923 | Yes | Total return |
Allocation: | Next $500 million | 0.60% | consistent with | |||
Conservative | Next $500 million | 0.55% | preservation | |||
Portfolio | Next $5 billion | 0.50% | of capital. | |||
Next $5 billion | 0.475% | |||||
Next $5 billion | 0.455% | |||||
Next $5 billion | 0.44% | |||||
Any excess over $21.5 billion | 0.43% | |||||
H-1
Has | ||||||
Amount of | compensation | |||||
Management | been waived, | |||||
Fee Paid in the | reduced or | |||||
Most Recent | otherwise | |||||
Fiscal Year | agreed to be | |||||
Net Assets | (after applicable | reduced | ||||
as of | waivers and | under any | Current | |||
December 31, | reimbursements, | applicable | Investment | |||
Fund | 2006 ($) | Current Management Fee Schedule | if any) ($) | contract? | Objective | |
Putnam Asset | 2,156,488,751 | First $500 million | 0.70% | 9,639,295 | Yes | Capital appreciation. |
Allocation: | Next $500 million | 0.60% | ||||
Growth Portfolio | Next $500 million | 0.55% | ||||
Next $5 billion | 0.50% | |||||
Next $5 billion | 0.475% | |||||
Next $5 billion | 0.455% | |||||
Next $5 billion | 0.44% | |||||
Any excess over $21.5 billion | 0.43% | |||||
Putnam California | 83,373,293 | The lesser of 0.55%, or | 531,472 | Yes | To provide as high a | |
Investment Grade | First $500 million | 0.65% | level of current | |||
Municipal Trust | Next $500 million | 0.55% | income free from | |||
Next $500 million | 0.50% | federal income tax | ||||
Next $5 billion | 0.45% | and California | ||||
Next $5 billion | 0.425% | personal income | ||||
Next $5 billion | 0.405% | taxes as Putnam | ||||
Next $5 billion | 0.39% | Management believes | ||||
Any excess thereafter | 0.38% | is consistent with | ||||
the preservation | ||||||
of capital. | ||||||
Putnam California | 2,076,820,792 | The lesser of 0.50%, or | 10,368,635 | Yes | To provide as high a | |
Tax Exempt | First $500 million | 0.60% | level of current | |||
Income Fund | Next $500 million | 0.50% | income exempt | |||
Next $500 million | 0.45% | from federal income | ||||
Next $5 billion | 0.40% | tax and California | ||||
Next $5 billion | 0.375% | personal income | ||||
Next $5 billion | 0.355% | tax as Putnam | ||||
Next $5 billion | 0.34% | Management believes | ||||
Any excess thereafter | 0.33% | to be consistent | ||||
with the | ||||||
preservation | ||||||
of capital. | ||||||
Putnam Capital | 649,313,138 | First $500 million | 0.65% | 4,388,833 | Yes | Capital appreciation. |
Appreciation Fund | Next $500 million | 0.55% | ||||
Next $500 million | 0.50% | |||||
Next $5 billion | 0.45% | |||||
Next $5 billion | 0.425% | |||||
Next $5 billion | 0.405% | |||||
Next $5 billion | 0.39% | |||||
Any excess over $21.5 billion | 0.38% | |||||
Putnam Capital | 1,125,906,050 | First $500 million | 0.65% | 6,363,713 | Yes | Long-term growth |
Opportunities Fund | Next $500 million | 0.55% | of capital. | |||
Next $500 million | 0.50% | |||||
Next $5 billion | 0.45% | |||||
Next $5 billion | 0.425% | |||||
Next $5 billion | 0.405% | |||||
Next $5 billion | 0.39% | |||||
Any excess thereafter | 0.38% | |||||
Putnam Classic | 766,747,810 | First $500 million | 0.65% | 4,836,159 | Yes | Capital growth. |
Equity Fund | Next $500 million | 0.55% | Current income is a | |||
Next $500 million | 0.50% | secondary goal. | ||||
Next $5 billion | 0.45% | |||||
Next $5 billion | 0.425% | |||||
Next $5 billion | 0.405% | |||||
Next $5 billion | 0.39% | |||||
Any excess thereafter | 0.38% | |||||
H-2
Has | ||||||
Amount of | compensation | |||||
Management | been waived, | |||||
Fee Paid in the | reduced or | |||||
Most Recent | otherwise | |||||
Fiscal Year | agreed to be | |||||
Net Assets | (after applicable | reduced | ||||
as of | waivers and | under any | Current | |||
December 31, | reimbursements, | applicable | Investment | |||
Fund | 2006 ($) | Current Management Fee Schedule | if any) ($) | contract? | Objective | |
Putnam Convertible | 724,297,978 | First $500 million | 0.65% | 4,231,616 | Yes | Current income and |
Income-Growth Trust | Next $500 million | 0.55% | capital appreciation. | |||
Next $500 million | 0.50% | Conservation of | ||||
Next $5 billion | 0.45% | capital is a | ||||
Next $5 billion | 0.425% | secondary objective. | ||||
Next $5 billion | 0.405% | |||||
Next $5 billion | 0.39% | |||||
Any excess thereafter | 0.38% | |||||
Putnam Discovery | 850,247,984 | First $500 million | 0.70% | 5,497,942 | Yes | Long-term growth |
Growth Fund | Next $500 million | 0.60% | of capital. | |||
Next $500 million | 0.55% | |||||
Next $5 billion | 0.50% | |||||
Next $5 billion | 0.475% | |||||
Next $5 billion | 0.455% | |||||
Next $5 billion | 0.44% | |||||
Any excess thereafter | 0.43% | |||||
Putnam Diversified | 2,770,991,703 | First $500 million | 0.70% | 17,403,729 | Yes | To provide as high a |
Income Trust | Next $500 million | 0.60% | level of current | |||
Next $500 million | 0.55% | income as Putnam | ||||
Next $5 billion | 0.50% | Management believes | ||||
Next $5 billion | 0.475% | is consistent with | ||||
Next $5 billion | 0.455% | preservation | ||||
Next $5 billion | 0.44% | of capital. | ||||
Any excess thereafter | 0.43% | |||||
Putnam Equity | 3,842,617,273 | First $500 million | 0.65% | 18,067,258 | Yes | Capital growth and |
Income Fund | Next $500 million | 0.55% | current income. | |||
Next $500 million | 0.50% | |||||
Next $5 billion | 0.45% | |||||
Next $5 billion | 0.425% | |||||
Next $5 billion | 0.405% | |||||
Next $5 billion | 0.39% | |||||
Any excess thereafter | 0.38% | |||||
Putnam Europe | 560,853,928 | First $500 million | 0.80% | 4,213,337 | Yes | Capital appreciation. |
Equity Fund | Next $500 million | 0.70% | ||||
Next $500 million | 0.65% | |||||
Next $5 billion | 0.60% | |||||
Next $5 billion | 0.575% | |||||
Next $5 billion | 0.555% | |||||
Next $5 billion | 0.54% | |||||
Any excess thereafter | 0.53% | |||||
Putnam Floating | 494,289,793 | First $500 million | 0.65% | 1,719,001^ | Yes | High current income. |
Rate Income Fund | Next $500 million | 0.55% | Preservation of | |||
Next $500 million | 0.50% | capital is a | ||||
Next $5 billion | 0.45% | secondary goal. | ||||
Next $5 billion | 0.425% | |||||
Next $5 billion | 0.405% | |||||
Next $5 billion | 0.39% | |||||
Next $5 billion | 0.38% | |||||
Next $5 billion | 0.37% | |||||
Next $5 billion | 0.36% | |||||
Next $5 billion | 0.35% | |||||
Next $5 billion | 0.34% | |||||
Next $8.5 billion | 0.33% | |||||
Any excess thereafter | 0.32% | |||||
H-3
Has | ||||||
Amount of | compensation | |||||
Management | been waived, | |||||
Fee Paid in the | reduced or | |||||
Most Recent | otherwise | |||||
Fiscal Year | agreed to be | |||||
Net Assets | (after applicable | reduced | ||||
as of | waivers and | under any | Current | |||
December 31, | reimbursements, | applicable | Investment | |||
Fund | 2006 ($) | Current Management Fee Schedule | if any) ($) | contract? | Objective | |
The Putnam Fund | 15,172,174,430 | First $500 million | 0.65% | 67,376,969 | Yes | Capital growth and |
for Growth | Next $500 million | 0.55% | current income. | |||
and Income | Next $500 million | 0.50% | ||||
Next $5 billion | 0.45% | |||||
Next $5 billion | 0.425% | |||||
Next $5 billion | 0.405% | |||||
Next $5 billion | 0.39% | |||||
Next $5 billion | 0.38% | |||||
Next $5 billion | 0.37% | |||||
Next $5 billion | 0.36% | |||||
Next $5 billion | 0.35% | |||||
Next $5 billion | 0.34% | |||||
Next $8.5 billion | 0.33% | |||||
Any excess over $55 billion | 0.32% | |||||
The George Putnam | 4,654,483,340 | First $500 million | 0.65% | 23,520,227 | Yes | To provide a |
Fund of Boston | Next $500 million | 0.55% | balanced investment | |||
Next $500 million | 0.50% | composed of a | ||||
Next $5 billion | 0.45% | well-diversified | ||||
Next $5 billion | 0.425% | portfolio of stocks | ||||
Next $5 billion | 0.405% | and bonds which | ||||
Next $5 billion | 0.39% | produce both capital | ||||
Any excess thereafter | 0.38% | growth and | ||||
current income. | ||||||
Putnam Global | 2,116,008,457 | First $500 million | 0.80% | 15,165,340 | Yes | Capital appreciation. |
Equity Fund | Next $500 million | 0.70% | ||||
Next $500 million | 0.65% | |||||
Next $5 billion | 0.60% | |||||
Next $5 billion | 0.575% | |||||
Next $5 billion | 0.555% | |||||
Next $5 billion | 0.54% | |||||
Next $5 billion | 0.53% | |||||
Next $5 billion | 0.52% | |||||
Next $5 billion | 0.51% | |||||
Next $5 billion | 0.50% | |||||
Next $5 billion | 0.49% | |||||
Next $8.5 billion | 0.48% | |||||
Any excess over $55 billion | 0.47% | |||||
Putnam Global | 128,502,186 | First $500 million | 0.70% | 528,321 | Yes | High current income |
Income Trust | Next $500 million | 0.60% | by investing | |||
Next $500 million�� | 0.55% | principally in debt | ||||
Next $5 billion | 0.50% | securities of | ||||
Next $5 billion | 0.475% | sovereign and | ||||
Next $5 billion | 0.455% | private issuers | ||||
Next $5 billion | 0.44% | worldwide, including | ||||
Any excess thereafter | 0.43% | supranational issuers. | ||||
Putnam Global | 627,944,661 | First $500 million | 0.70% | 4,126,921 | Yes | Capital appreciation. |
Natural Resources | Next $500 million | 0.60% | ||||
Fund | Next $500 million | 0.55% | ||||
Next $5 billion | 0.50% | |||||
Next $5 billion | 0.475% | |||||
Next $5 billion | 0.455% | |||||
Next $5 billion | 0.44% | |||||
Any excess thereafter | 0.43% | |||||
H-4
Has | ||||||
Amount of | compensation | |||||
Management | been waived, | |||||
Fee Paid in the | reduced or | |||||
Most Recent | otherwise | |||||
Fiscal Year | agreed to be | |||||
Net Assets | (after applicable | reduced | ||||
as of | waivers and | under any | Current | |||
December 31, | reimbursements, | applicable | Investment | |||
Fund | 2006 ($) | Current Management Fee Schedule | if any) ($) | contract? | Objective | |
Putnam Growth | 659,146,436 | First $500 million | 0.70% | 2,913,736 | Yes | Capital appreciation. |
Opportunities Fund | Next $500 million | 0.60% | ||||
Next $500 million | 0.55% | |||||
Next $5 billion | 0.50% | |||||
Next $5 billion | 0.475% | |||||
Next $5 billion | 0.455% | |||||
Next $5 billion | 0.44% | |||||
Any excess thereafter | 0.43% | |||||
Putnam Health | 2,267,488,061 | First $500 million | 0.70% | 14,802,805 | Yes | Capital appreciation. |
Sciences Trust | Next $500 million | 0.60% | ||||
Next $500 million | 0.55% | |||||
Next $5 billion | 0.50% | |||||
Next $5 billion | 0.475% | |||||
Next $5 billion | 0.455% | |||||
Next $5 billion | 0.44% | |||||
Any excess over $21.5 billion | 0.43% | |||||
Putnam High Income | 198,149,622 | First $500 million | 0.70% | 1,372,004 | Yes | To provide high |
Securities Fund | Next $500 million | 0.60% | current income as a | |||
Next $500 million | 0.55% | primary objective | ||||
Next $5 billion | 0.50% | and capital | ||||
Next $5 billion | 0.475% | appreciation as a | ||||
Next $5 billion | 0.455% | secondary objective. | ||||
Next $5 billion | 0.44% | |||||
Next $5 billion | 0.43% | |||||
Next $5 billion | 0.42% | |||||
Next $5 billion | 0.41% | |||||
Next $5 billion | 0.40% | |||||
Next $5 billion | 0.39% | |||||
Next $8.5 billion | 0.38% | |||||
Any excess thereafter | 0.37% | |||||
Putnam High Yield | 801,711,721 | First $500 million | 0.70% | 5,676,755 | Yes | High current |
Advantage Fund | Next $500 million | 0.60% | income. Capital | |||
Next $500 million | 0.55% | growth is a | ||||
Next $5 billion | 0.50% | secondary goal | ||||
Next $5 billion | 0.475% | when consistent | ||||
Next $5 billion | 0.455% | with achieving high | ||||
Next $5 billion | 0.44% | current income. | ||||
Any excess thereafter | 0.43% | |||||
Putnam High Yield | 213,917,148 | The lesser of 0.55%, or | 1,448,462 | Yes | To provide high | |
Municipal Trust | First $500 million | 0.65% | current income | |||
Next $500 million | 0.55% | exempt from federal | ||||
Next $500 million | 0.50% | income tax. | ||||
Next $5 billion | 0.45% | |||||
Next $5 billion | 0.425% | |||||
Next $5 billion | 0.405% | |||||
Next $5 billion | 0.39% | |||||
Any excess thereafter | 0.38% | |||||
Putnam High | 2,357,157,321 | First $500 million | 0.70% | 13,784,128 | Yes | High current |
Yield Trust | Next $500 million | 0.60% | income. Capital | |||
Next $500 million | 0.55% | growth is a | ||||
Next $5 billion | 0.50% | secondary goal. | ||||
Next $5 billion | 0.475% | |||||
Next $5 billion | 0.455% | |||||
Next $5 billion | 0.44% | |||||
Any excess thereafter | 0.43% | |||||
H-5
Has | ||||||
Amount of | compensation | |||||
Management | been waived, | |||||
Fee Paid in the | reduced or | |||||
Most Recent | otherwise | |||||
Fiscal Year | agreed to be | |||||
Net Assets | (after applicable | reduced | ||||
as of | waivers and | under any | Current | |||
December 31, | reimbursements, | applicable | Investment | |||
Fund | 2006 ($) | Current Management Fee Schedule | if any) ($) | contract? | Objective | |
Putnam Income | 2,447,632,260 | First $500 million | 0.65% | 11,940,410 | Yes | High current income |
Fund | Next $500 million | 0.55% | consistent with | |||
Next $500 million | 0.50% | what Putnam | ||||
Next $5 billion | 0.45% | management | ||||
Next $5 billion | 0.425% | believes to be | ||||
Next $5 billion | 0.405% | prudent risk. | ||||
Next $5 billion | 0.39% | |||||
Any excess thereafter | 0.38% | |||||
Putnam Income | 13,002,265 | First $500 million | 0.65% | 0* | Yes | Current income |
Strategies Fund | Next $500 million | 0.55% | consistent with | |||
Next $500 million | 0.50% | what Putnam | ||||
Next $5 billion | 0.45% | Management believes | ||||
Next $5 billion | 0.425% | to be prudent risk. | ||||
Next $5 billion | 0.405% | Its secondary | ||||
Next $5 billion | 0.39% | objective is | ||||
Next $5 billion | 0.38% | capital appreciation. | ||||
Next $5 billion | 0.37% | |||||
Next $5 billion | 0.36% | |||||
Next $5 billion | 0.35% | |||||
Next $5 billion | 0.34% | |||||
Next $8.5 billion | 0.33% | |||||
Any excess thereafter | 0.32% | |||||
Putnam International | 1,783,630,400 | First $500 million | 1.00% | 13,345,775 | Yes | Long-term |
Capital | Next $500 million | 0.90% | capital appreciation. | |||
Opportunities Fund | Next $500 million | 0.85% | ||||
Next $5 billion | 0.80% | |||||
Next $5 billion | 0.775% | |||||
Next $5 billion | 0.755% | |||||
Next $5 billion | 0.74% | |||||
Any excess thereafter | 0.73% | |||||
Putnam International | 7,003,286,336 | First $500 million | 0.80% | 39,425,440 | Yes | Capital appreciation. |
Equity Fund | Next $500 million | 0.70% | ||||
Next $500 million | 0.65% | |||||
Next $5 billion | 0.60% | |||||
Next $5 billion | 0.575% | |||||
Next $5 billion | 0.555% | |||||
Next $5 billion | 0.54% | |||||
Any excess over $21.5 billion | 0.53% | |||||
Putnam International | 1,037,228,946 | First $500 million | 0.80% | 5,732,946 | Yes | Capital growth. |
Growth and | Next $500 million | 0.70% | Current income is a | |||
Income Fund | Next $500 million | 0.65% | secondary objective. | |||
Next $5 billion | 0.60% | |||||
Next $5 billion | 0.575% | |||||
Next $5 billion | 0.555% | |||||
Next $5 billion | 0.54% | |||||
Any excess thereafter | 0.53% | |||||
Putnam International | 811,831,094 | First $500 million | 1.00% | 6,580,631 | Yes | Long-term |
New Opportunities | Next $500 million | 0.90% | capital appreciation. | |||
Fund | Next $500 million | 0.85% | ||||
Next $5 billion | 0.80% | |||||
Next $5 billion | 0.775% | |||||
Next $5 billion | 0.755% | |||||
Next $5 billion | 0.74% | |||||
Any excess thereafter | 0.73% | |||||
H-6
Has | ||||||
Amount of | compensation | |||||
Management | been waived, | |||||
Fee Paid in the | reduced or | |||||
Most Recent | otherwise | |||||
Fiscal Year | agreed to be | |||||
Net Assets | (after applicable | reduced | ||||
as of | waivers and | under any | Current | |||
December 31, | reimbursements, | applicable | Investment | |||
Fund | 2006 ($) | Current Management Fee Schedule | if any) ($) | contract? | Objective | |
Putnam Investment | 363,338,832 | The lesser of 0.55%, or | 2,059,634 | Yes | To provide as high a | |
Grade Municipal | First $500 million | 0.65% | level of current | |||
Trust | Next $500 million | 0.55% | income exempt | |||
Next $500 million | 0.50% | from federal income | ||||
Next $5 billion | 0.45% | tax as Putnam | ||||
Next $5 billion | 0.425% | Management believes | ||||
Next $5 billion | 0.405% | to be consistent | ||||
Next $5 billion | 0.39% | with the preservation | ||||
Any excess thereafter | 0.38% | of capital. | ||||
Putnam Investors | 4,107,665,166 | First $500 million | 0.65% | 19,513,803 | Yes | Long-term growth |
Fund | Next $500 million | 0.55% | of capital and any | |||
Next $500 million | 0.50% | increased income | ||||
Next $5 billion | 0.45% | that results from | ||||
Next $5 billion | 0.425% | this growth. | ||||
Next $5 billion | 0.405% | |||||
Next $5 billion | 0.39% | |||||
Any excess over $21.5 billion | 0.38% | |||||
Putnam Limited | 439,936,540 | The lesser of 0.50%, or | 2,392,584 | Yes | As high a level of | |
Duration | First $500 million | 0.60% | current income as | |||
Government | Next $500 million | 0.50% | Putnam Management | |||
Income Fund | Next $500 million | 0.45% | believes is consistent | |||
Next $5 billion | 0.40% | with preservation | ||||
Next $5 billion | 0.375% | of capital. | ||||
Next $5 billion | 0.355% | |||||
Next $5 billion | 0.34% | |||||
Any excess over $21.5 billion | 0.33% | |||||
Putnam Managed | 548,638,387 | The lesser of 0.55%, or | 3,167,820 | Yes | To provide high | |
Municipal Income | First $500 million | 0.65% | current income free | |||
Trust | Next $500 million | 0.55% | from federal | |||
Next $500 million | 0.50% | income tax. | ||||
Next $5 billion | 0.45% | |||||
Next $5 billion | 0.425% | |||||
Next $5 billion | 0.405% | |||||
Next $5 billion | 0.39% | |||||
Any excess thereafter | 0.38% | |||||
Putnam | 309,261,461 | The lesser of 0.50%, or | 1,675,201 | Yes | As high a level of | |
Massachusetts Tax | First $500 million | 0.60% | current income | |||
Exempt Income | Next $500 million | 0.50% | exempt from federal | |||
Fund | Next $500 million | 0.45% | income tax and | |||
Next $5 billion | 0.40% | personal income tax | ||||
Next $5 billion | 0.375% | (if any) of the | ||||
Next $5 billion | 0.355% | Commonwealth of | ||||
Next $5 billion | 0.34% | Massachusetts as | ||||
Any excess over $21.5 billion | 0.33% | Putnam Management | ||||
believes is consistent | ||||||
with preservation | ||||||
of capital. | ||||||
H-7
Has | ||||||
Amount of | compensation | |||||
Management | been waived, | |||||
Fee Paid in the | reduced or | |||||
Most Recent | otherwise | |||||
Fiscal Year | agreed to be | |||||
Net Assets | (after applicable | reduced | ||||
as of | waivers and | under any | Current | |||
December 31, | reimbursements, | applicable | Investment | |||
Fund | 2006 ($) | Current Management Fee Schedule | if any) ($) | contract? | Objective | |
Putnam Master | 654,273,418 | First $500 million | 0.75% | 4,797,486 | Yes | With equal |
Intermediate Income | Next $500 million | 0.65% | emphasis, to | |||
Trust | Next $500 million | 0.60% | provide high current | |||
Next $5 billion | 0.55% | income and relative | ||||
Next $5 billion | 0.525% | stability of net | ||||
Next $5 billion | 0.505% | asset value. | ||||
Next $5 billion | 0.49% | |||||
Next $5 billion | 0.48% | |||||
Next $5 billion | 0.47% | |||||
Next $5 billion | 0.46% | |||||
Next $5 billion | 0.45% | |||||
Next $5 billion | 0.44% | |||||
Next $8.5 billion | 0.43% | |||||
Any excess thereafter | 0.42% | |||||
Putnam Michigan Tax | 117,691,883 | The lesser of 0.50%, or | 648,238 | Yes | As high a level of | |
Exempt Income Fund | First $500 million | 0.60% | current income | |||
Next $500 million | 0.50% | exempt from federal | ||||
Next $500 million | 0.45% | income tax and | ||||
Next $5 billion | 0.40% | personal income tax | ||||
Next $5 billion | 0.375% | (if any) of the state | ||||
Next $5 billion | 0.355% | of Michigan as | ||||
Next $5 billion | 0.34% | Putnam Management | ||||
Any excess over $21.5 billion | 0.33% | believes is consistent | ||||
with preservation | ||||||
of capital. | ||||||
Putnam Mid Cap | 973,670,094 | First $500 million | 0.70% | 5,871,795 | Yes | Capital appreciation |
Value Fund | Next $500 million | 0.60% | and, as a secondary | |||
Next $500 million | 0.55% | objective, current | ||||
Next $5 billion | 0.50% | income. | ||||
Next $5 billion | 0.475% | |||||
Next $5 billion | 0.455% | |||||
Next $5 billion | 0.44% | |||||
Any excess thereafter | 0.43% | |||||
Putnam Minnesota | 108,716,812 | The lesser of 0.50%, or | 538,350 | Yes | As high a level of | |
Tax Exempt | First $500 million | 0.60% | current income | |||
Income Fund | Next $500 million | 0.50% | exempt from federal | |||
Next $500 million | 0.45% | income tax and | ||||
Next $5 billion | 0.40% | personal income tax | ||||
Next $5 billion | 0.375% | (if any) of the state | ||||
Next $5 billion | 0.355% | of Minnesota as | ||||
Next $5 billion | 0.34% | Putnam Management | ||||
Any excess over $21.5 billion | 0.33% | believes is consistent | ||||
with preservation | ||||||
of capital. | ||||||
Putnam Money | 3,278,464,902 | First $100 million | 0.50% | 10,390,443 | Yes | As high a rate of |
Market Fund | Next $100 million | 0.40% | current income as | |||
Next $300 million | 0.35% | Putnam Management | ||||
Next $500 million | 0.325% | believes is consistent | ||||
Next $500 million | 0.30% | with preservation of | ||||
Next $2.5 billion | 0.275% | capital and | ||||
Next $2.5 billion | 0.25% | maintenance | ||||
Next $5 billion | 0.225% | of liquidity. | ||||
Next $5 billion | 0.205% | |||||
Next $5 billion | 0.19% | |||||
Any excess thereafter | 0.18% | |||||
H-8
Has | ||||||
Amount of | compensation | |||||
Management | been waived, | |||||
Fee Paid in the | reduced or | |||||
Most Recent | otherwise | |||||
Fiscal Year | agreed to be | |||||
Net Assets | (after applicable | reduced | ||||
as of | waivers and | under any | Current | |||
December 31, | reimbursements, | applicable | Investment | |||
Fund | 2006 ($) | Current Management Fee Schedule | if any) ($) | contract? | Objective | |
Putnam Municipal | 363,454,277 | The lesser of 0.55%, or | 2,290,901 | Yes | To provide as high a | |
Bond Fund | First $500 million | 0.65% | level of current | |||
Next $500 million | 0.55% | income exempt | ||||
Next $500 million | 0.50% | from federal income | ||||
Next $5 billion | 0.45% | tax as Putnam | ||||
Next $5 billion | 0.425% | Management | ||||
Next $5 billion | 0.405% | believes is consistent | ||||
Next $5 billion | 0.39% | with preservation | ||||
Any excess thereafter | 0.38% | of capital. | ||||
Putnam Municipal | 322,775,012 | The lesser of 0.35%, or | 1,394,604 | Yes | The fund seeks to | |
Opportunities Trust** | First $500 million | 0.45% | provide as high a | |||
Next $500 million | 0.35% | level of current | ||||
Next $500 million | 0.30% | income free from | ||||
Next $5 billion | 0.25% | federal income tax | ||||
Next $5 billion | 0.225% | as Putnam | ||||
Next $5 billion | 0.205% | Management believes | ||||
Next $5 billion | 0.19% | is consistent with | ||||
Any excess thereafter | 0.18% | the preservation | ||||
of capital. | ||||||
Putnam New Jersey | 204,244,200 | The lesser of 0.50%, or | 1,101,027 | Yes | As high a level of | |
Tax Exempt | First $500 million | 0.60% | current income | |||
Income Fund | Next $500 million | 0.50% | exempt from federal | |||
Next $500 million | 0.45% | income tax and | ||||
Next $5 billion | 0.40% | personal income tax | ||||
Next $5 billion | 0.375% | (if any) of the state | ||||
Next $5 billion | 0.355% | of New Jersey as | ||||
Next $5 billion | 0.34% | Putnam Management | ||||
Any excess over $21.5 billion | 0.33% | believes is | ||||
consistent with | ||||||
preservation | ||||||
of capital. | ||||||
Putnam New | 4,697,260,397 | First $500 million | 0.70% | 30,814,799 | Yes | Long-term |
Opportunities Fund | Next $500 million | 0.60% | capital appreciation. | |||
Next $500 million | 0.55% | |||||
Next $5 billion | 0.50% | |||||
Next $5 billion | 0.475% | |||||
Next $5 billion | 0.455% | |||||
Next $5 billion | 0.44% | |||||
Next $5 billion | 0.43% | |||||
Next $5 billion | 0.42% | |||||
Next $5 billion | 0.41% | |||||
Next $5 billion | 0.40% | |||||
Next $5 billion | 0.39% | |||||
Next $8.5 billion | 0.38% | |||||
Any excess above $55 billion | 0.37% | |||||
Putnam New | 2,074,162,525 | First $500 million | 0.70% | 11,478,217 | Yes | Long-term |
Value Fund | Next $500 million | 0.60% | capital appreciation. | |||
Next $500 million | 0.55% | |||||
Next $5 billion | 0.50% | |||||
Next $5 billion | 0.475% | |||||
Next $5 billion | 0.455% | |||||
Next $5 billion | 0.44% | |||||
Any excess thereafter | 0.43% | |||||
H-9
Has | ||||||
Amount of | compensation | |||||
Management | been waived, | |||||
Fee Paid in the | reduced or | |||||
Most Recent | otherwise | |||||
Fiscal Year | agreed to be | |||||
Net Assets | (after applicable | reduced | ||||
as of | waivers and | under any | Current | |||
December 31, | reimbursements, | applicable | Investment | |||
Fund | 2006 ($) | Current Management Fee Schedule | if any) ($) | contract? | Objective | |
Putnam New York | 48,297,644 | The lesser of 0.55%, or | 302,665 | Yes | To provide as high a | |
Investment Grade | First $500 million | 0.65% | level of current | |||
Municipal Trust | Next $500 million | 0.55% | income free from | |||
Next $500 million | 0.50% | federal income tax | ||||
Next $5 billion | 0.45% | and New York state | ||||
Next $5 billion | 0.425% | and city personal | ||||
Next $5 billion | 0.405% | income taxes as | ||||
Next $5 billion | 0.39% | Putnam Management | ||||
Any excess thereafter | 0.38% | believes is consistent | ||||
with the preservation | ||||||
of capital. | ||||||
Putnam New York | 1,158,329,137 | The lesser of 0.50%, or | 5,972,705 | Yes | As high a level of | |
Tax Exempt | First $500 million | 0.60% | current income | |||
Income Fund | Next $500 million | 0.50% | exempt from federal | |||
Next $500 million | 0.45% | income tax and | ||||
Next $5 billion | 0.40% | New York State and | ||||
Next $5 billion | 0.375% | City personal income | ||||
Next $5 billion | 0.355% | taxes as Putnam | ||||
Next $5 billion | 0.34% | Management believes | ||||
Any excess over $21.5 billion | 0.33% | to be consistent | ||||
with preservation | ||||||
of capital. | ||||||
Putnam Ohio Tax | 162,665,349 | The lesser of 0.50%, or | 849,434 | Yes | As high a level of | |
Exempt Income Fund | First $500 million | 0.60% | current income | |||
Next $500 million | 0.50% | exempt from federal | ||||
Next $500 million | 0.45% | income tax and | ||||
Next $5 billion | 0.40% | personal income tax | ||||
Next $5 billion | 0.375% | (if any) of the state | ||||
Next $5 billion | 0.355% | of Ohio as Putnam | ||||
Next $5 billion | 0.34% | Management believes | ||||
Any excess over $21.5 billion | 0.33% | is consistent with | ||||
preservation | ||||||
of capital. | ||||||
Putnam OTC & | 707,529,454 | First $500 million | 0.70% | 6,255,747 | Yes | Capital appreciation. |
Emerging Growth | Next $500 million | 0.60% | ||||
Fund | Next $500 million | 0.55% | ||||
Next $5 billion | 0.50% | |||||
Next $5 billion | 0.475% | |||||
Next $5 billion | 0.455% | |||||
Next $5 billion | 0.44% | |||||
Any excess thereafter | 0.43% | |||||
Putnam Pennsylvania | 170,561,420 | The lesser of 0.50%, or | 926,507 | Yes | As high a level of | |
Tax Exempt | First $500 million | 0.60% | current income | |||
Income Fund | Next $500 million | 0.50% | exempt from federal | |||
Next $500 million | 0.45% | income tax and | ||||
Next $5 billion | 0.40% | personal income tax | ||||
Next $5 billion | 0.375% | (if any) of the | ||||
Next $5 billion | 0.355% | Commonwealth of | ||||
Next $5 billion | 0.34% | Pennsylvania as | ||||
Any excess over $21.5 billion | 0.33% | Putnam Management | ||||
believes is consistent | ||||||
with preservation | ||||||
of capital. | ||||||
H-10
Has | ||||||
Amount of | compensation | |||||
Management | been waived, | |||||
Fee Paid in the | reduced or | |||||
Most Recent | otherwise | |||||
Fiscal Year | agreed to be | |||||
Net Assets | (after applicable | reduced | ||||
as of | waivers and | under any | Current | |||
December 31, | reimbursements, | applicable | Investment | |||
Fund | 2006 ($) | Current Management Fee Schedule | if any) ($) | contract? | Objective | |
Putnam Premier | 1,290,918,588 | First $500 million | 0.75% | 8,927,294 | Yes | To provide high |
Income Trust | Next $500 million | 0.65% | current income. | |||
Next $500 million | 0.60% | |||||
Next $5 billion | 0.55% | |||||
Next $5 billion | 0.525% | |||||
Next $5 billion | 0.505% | |||||
Next $5 billion | 0.49% | |||||
Next $5 billion | 0.48% | |||||
Next $5 billion | 0.47% | |||||
Next $5 billion | 0.46% | |||||
Next $5 billion | 0.45% | |||||
Next $5 billion | 0.44% | |||||
Next $8.5 billion | 0.43% | |||||
Any excess thereafter | 0.42% | |||||
Putnam Prime | 6,828,544,083 | 0.20% | 2,183,172 | Yes | As high a rate of | |
Money Market | current income as | |||||
Fund*** | Putnam Management | |||||
believes is consistent | ||||||
with preservation | ||||||
of capital and | ||||||
maintenance | ||||||
of liquidity. | ||||||
Putnam Research | 825,539,509 | First $500 million | 0.65% | 5,269,897 | Yes | Capital appreciation. |
Fund**** | Next $500 million | 0.55% | ||||
Next $500 million | 0.50% | |||||
Next $5 billion | 0.45% | |||||
Next $5 billion | 0.425% | |||||
Next $5 billion | 0.405% | |||||
Next $5 billion | 0.39% | |||||
Any excess thereafter | 0.38% | |||||
Putnam | 82,508,709 | 0.05% | 29,736 | Yes | Capital appreciation | |
RetirementReady | and current income | |||||
2010 Fund | consistent with a | |||||
decreasing emphasis | ||||||
on capital | ||||||
appreciation and an | ||||||
increasing emphasis | ||||||
on current income | ||||||
as it approaches its | ||||||
target date. | ||||||
Putnam | 150,347,628 | 0.05% | 58,932 | Yes | Capital appreciation | |
RetirementReady | and current income | |||||
2015 Fund | consistent with a | |||||
decreasing emphasis | ||||||
on capital | ||||||
appreciation and an | ||||||
increasing emphasis | ||||||
on current income | ||||||
as it approaches its | ||||||
target date. | ||||||
H-11
Has | ||||||||
Amount of | compensation | |||||||
Management | been waived, | |||||||
Fee Paid in the | reduced or | |||||||
Most Recent | otherwise | |||||||
Fiscal Year | agreed to be | |||||||
Net Assets | (after applicable | reduced | ||||||
as of | waivers and | under any | Current | |||||
December 31, | reimbursements, | applicable | Investment | |||||
Fund | 2006 ($) | Current Management Fee Schedule | if any) ($) | contract? | Objective | |||
Putnam | 162,096,359 | 0.05% | 64,225 | Yes | Capital appreciation | |||
RetirementReady | and current income | |||||||
2020 Fund | consistent with a | |||||||
decreasing emphasis | ||||||||
on capital | ||||||||
appreciation and an | ||||||||
increasing emphasis | ||||||||
on current income | ||||||||
as it approaches its | ||||||||
target date. | ||||||||
Putnam | 133,811,161 | 0.05% | 49,571 | Yes | Capital appreciation | |||
RetirementReady | and current income | |||||||
2025 Fund | consistent with a | |||||||
decreasing emphasis | ||||||||
on capital | ||||||||
appreciation and an | ||||||||
increasing emphasis | ||||||||
on current income | ||||||||
as it approaches its | ||||||||
target date. | ||||||||
Putnam | 101,690,671 | 0.05% | 25,310 | Yes | Capital appreciation | |||
RetirementReady | and current income | |||||||
2030 Fund | consistent with a | |||||||
decreasing emphasis | ||||||||
on capital | ||||||||
appreciation and an | ||||||||
increasing emphasis | ||||||||
on current income | ||||||||
as it approaches its | ||||||||
target date. | ||||||||
Putnam | 68,748,550 | 0.05% | 6,096 | Yes | Capital appreciation | |||
RetirementReady | and current income | |||||||
2035 Fund | consistent with a | |||||||
decreasing emphasis | ||||||||
on capital | ||||||||
appreciation and an | ||||||||
increasing emphasis | ||||||||
on current income | ||||||||
as it approaches its | ||||||||
target date. | ||||||||
Putnam | 44,524,474 | 0.05% | 0† | Yes | Capital appreciation | |||
RetirementReady | and current income | |||||||
2040 Fund | consistent with a | |||||||
decreasing emphasis | ||||||||
on capital | ||||||||
appreciation and an | ||||||||
increasing emphasis | ||||||||
on current income | ||||||||
as it approaches its | ||||||||
target date. | ||||||||
H-12
Has | ||||||
Amount of | compensation | |||||
Management | been waived, | |||||
Fee Paid in the | reduced or | |||||
Most Recent | otherwise | |||||
Fiscal Year | agreed to be | |||||
Net Assets | (after applicable | reduced | ||||
as of | waivers and | under any | Current | |||
December 31, | reimbursements, | applicable | Investment | |||
Fund | 2006 ($) | Current Management Fee Schedule | if any) ($) | contract? | Objective | |
Putnam | 34,373,111 | 0.05% | 0† | Yes | Capital appreciation | |
RetirementReady | and current income | |||||
2045 Fund | consistent with a | |||||
decreasing emphasis | ||||||
on capital | ||||||
appreciation and an | ||||||
increasing emphasis | ||||||
on current income | ||||||
as it approaches its | ||||||
target date. | ||||||
Putnam | 8,214,863 | 0.05% | 0† | Yes | Capital appreciation | |
RetirementReady | and current income | |||||
2050 Fund | consistent with a | |||||
decreasing emphasis | ||||||
on capital | ||||||
appreciation and an | ||||||
increasing emphasis | ||||||
on current income | ||||||
as it approaches its | ||||||
target date. | ||||||
Putnam | 48,280,916 | 0.05% | 0† | Yes | As high a rate of | |
RetirementReady | current income as | |||||
Maturity Fund | Putnam Management | |||||
believes is | ||||||
consistent with | ||||||
preservation | ||||||
of capital. | ||||||
Putnam Small Cap | 499,218,523 | First $500 million | 1.00% | 3,840,676 | Yes | Capital appreciation. |
Growth Fund | Next $500 million | 0.90% | ||||
Next $500 million | 0.85% | |||||
Next $5 billion | 0.80% | |||||
Next $5 billion | 0.775% | |||||
Next $5 billion | 0.755% | |||||
Next $5 billion | 0.74% | |||||
Any excess thereafter | 0.73% | |||||
Putnam Small Cap | 774,255,867 | First $500 million | 0.80% | 6,409,797^ | Yes | Capital appreciation. |
Value Fund | Next $500 million | 0.70% | ||||
Next $500 million | 0.65% | |||||
Next $5 billion | 0.60% | |||||
Next $5 billion | 0.575% | |||||
Next $5 billion | 0.555% | |||||
Next $5 billion | 0.54% | |||||
Any excess thereafter | 0.53% | |||||
Putnam Tax | 1,200,407,523 | The lesser of 0.50%, or | 6,301,826 | Yes | As high a level of | |
Exempt Income | First $500 million | 0.60% | current income | |||
Fund | Next $500 million | 0.50% | exempt from federal | |||
Next $500 million | 0.45% | income tax as | ||||
Next $5 billion | 0.40% | Putnam Management | ||||
Next $5 billion | 0.375% | believes to be | ||||
Next $5 billion | 0.355% | consistent with | ||||
Next $5 billion | 0.34% | preservation | ||||
Any excess thereafter | 0.33% | of capital. | ||||
H-13
Has | ||||||
Amount of | compensation | |||||
Management | been waived, | |||||
Fee Paid in the | reduced or | |||||
Most Recent | otherwise | |||||
Fiscal Year | agreed to be | |||||
Net Assets | (after applicable | reduced | ||||
as of | waivers and | under any | Current | |||
December 31, | reimbursements, | applicable | Investment | |||
Fund | 2006 ($) | Current Management Fee Schedule | if any) ($) | contract? | Objective | |
Putnam Tax Exempt | 130,101,465 | First $500 million | 0.45% | 390,524 | Yes | As high a level of |
Money Market Fund | Next $500 million | 0.35% | current income | |||
Next $500 million | 0.30% | exempt from federal | ||||
Next $5 billion | 0.25% | income tax as | ||||
Next $5 billion | 0.225% | Putnam Management | ||||
Next $5 billion | 0.205% | believes is | ||||
Next $5 billion | 0.19% | consistent with | ||||
Any excess thereafter | 0.18% | preservation of | ||||
capital, maintenance | ||||||
of liquidity and | ||||||
stability of principal. | ||||||
Putnam Tax-Free | 192,025,045 | The lesser of 0.55%, or | 1,177,515 | Yes | The fund seeks to | |
Health Care Fund | First $500 million | 0.65% | provide as high a | |||
Next $500 million | 0.55% | level of current | ||||
Next $500 million | 0.50% | income free from | ||||
Next $5 billion | 0.45% | federal income tax | ||||
Next $5 billion | 0.425% | as Putnam | ||||
Next $5 billion | 0.405% | Management | ||||
Next $5 billion | 0.39% | believes is | ||||
Any excess over $21.5 billion | 0.38% | consistent with the | ||||
preservation | ||||||
of capital. | ||||||
Putnam Tax-Free | 1,463,606,993 | The lesser of 0.50%, or | 7,815,394 | Yes | High current income | |
High Yield Fund | First $500 million | 0.60% | exempt from federal | |||
Next $500 million | 0.50% | income tax. | ||||
Next $500 million | 0.45% | |||||
Next $5 billion | 0.40% | |||||
Next $5 billion | 0.375% | |||||
Next $5 billion | 0.355% | |||||
Next $5 billion | 0.34% | |||||
Any excess thereafter | 0.33% | |||||
Putnam Tax Smart | 282,128,891 | First $500 million | 0.70% | 1,914,939 | Yes | Long-term growth |
Equity Fund® | Next $500 million | 0.60% | of capital on an | |||
Next $500 million | 0.55% | after-tax basis. | ||||
Next $5 billion | 0.50% | |||||
Next $5 billion | 0.475% | |||||
Next $5 billion | 0.455% | |||||
Next $5 billion | 0.44% | |||||
Any excess thereafter | 0.43% | |||||
Putnam U.S. | 1,209,378,791 | First $500 million | 0.57% | 6,820,873 | Yes | As high a level of |
Government | Next $500 million | 0.475% | current income as | |||
Income Trust | Next $500 million | 0.4275% | Putnam Management | |||
Any excess over $1.5 billion | 0.38% | believes is | ||||
consistent with | ||||||
preservation | ||||||
of capital. | ||||||
Putnam Utilities | 622,775,796 | First $500 million | 0.70% | 3,727,421 | Yes | Capital growth and |
Growth and | Next $500 million | 0.60% | current income. | |||
Income Fund | Next $500 million | 0.55% | ||||
Next $5 billion | 0.50% | |||||
Next $5 billion | 0.475% | |||||
Next $5 billion | 0.455% | |||||
Next $5 billion | 0.44% | |||||
Any excess thereafter | 0.43% | |||||
H-14
Has | ||||||
Amount of | compensation | |||||
Management | been waived, | |||||
Fee Paid in the | reduced or | |||||
Most Recent | otherwise | |||||
Fiscal Year | agreed to be | |||||
Net Assets | (after applicable | reduced | ||||
as of | waivers and | under any | Current | |||
December 31, | reimbursements, | applicable | Investment | |||
Fund | 2006 ($) | Current Management Fee Schedule | if any) ($) | contract? | Objective | |
Putnam Vista Fund | 2,389,026,658 | First $500 million | 0.65% | 14,101,874 | Yes | Capital appreciation. |
Next $500 million | 0.55% | |||||
Next $500 million | 0.50% | |||||
Next $5 billion | 0.45% | |||||
Next $5 billion | 0.425% | |||||
Next $5 billion | 0.405% | |||||
Next $5 billion | 0.39% | |||||
Any excess over $21.5 billion | 0.38% | |||||
Putnam Voyager Fund | 8,241,571,476 | First $500 million | 0.70% | 51,035,233 | Yes | Capital appreciation. |
Next $500 million | 0.60% | |||||
Next $500 million | 0.55% | |||||
Next $5 billion | 0.50% | |||||
Next $5 billion | 0.475% | |||||
Next $5 billion | 0.455% | |||||
Next $5 billion | 0.44% | |||||
Next $5 billion | 0.43% | |||||
Next $5 billion | 0.42% | |||||
Next $5 billion | 0.41% | |||||
Next $5 billion | 0.40% | |||||
Next $5 billion | 0.39% | |||||
Next $8.5 billion | 0.38% | |||||
Above $55 billion | 0.37% | |||||
Putnam VT | 149,012,146 | First $500 million | 0.65% | 693,021 | Yes | High current income |
American | Next $500 million | 0.55% | with preservation of | |||
Government | Next $500 million | 0.50% | capital as a | |||
Income Fund | Next $5 billion | 0.45% | secondary objective. | |||
Next $5 billion | 0.425% | |||||
Next $5 billion | 0.405% | |||||
Next $5 billion | 0.39% | |||||
Next $5 billion | 0.38% | |||||
Next $5 billion | 0.37% | |||||
Next $5 billion | 0.36% | |||||
Next $5 billion | 0.35% | |||||
Any excess thereafter | 0.34% | |||||
Putnam VT Capital | 50,843,215 | First $500 million | 0.65% | 225,344 | Yes | Capital appreciation. |
Appreciation Fund | Next $500 million | 0.55% | ||||
Next $500 million | 0.50% | |||||
Next $5 billion | 0.45% | |||||
Next $5 billion | 0.425% | |||||
Next $5 billion | 0.405% | |||||
Next $5 billion | 0.39% | |||||
Next $5 billion | 0.38% | |||||
Next $5 billion | 0.37% | |||||
Next $5 billion | 0.36% | |||||
Next $5 billion | 0.35% | |||||
Next $5 billion | 0.34% | |||||
Next $8.5 billion | 0.33% | |||||
Any excess thereafter | 0.32% | |||||
H-15
Has | ||||||
Amount of | compensation | |||||
Management | been waived, | |||||
Fee Paid in the | reduced or | |||||
Most Recent | otherwise | |||||
Fiscal Year | agreed to be | |||||
Net Assets | (after applicable | reduced | ||||
as of | waivers and | under any | Current | |||
December 31, | reimbursements, | applicable | Investment | |||
Fund | 2006 ($) | Current Management Fee Schedule | if any) ($) | contract? | Objective | |
Putnam VT Capital | 46,989,019 | First $500 million | 0.65% | 222,790 | Yes | Long-term growth |
Opportunities Fund | Next $500 million | 0.55% | of capital. | |||
Next $500 million | 0.50% | |||||
Next $5 billion | 0.45% | |||||
Next $5 billion | 0.425% | |||||
Next $5 billion | 0.405% | |||||
Next $5 billion | 0.39% | |||||
Any excess thereafter | 0.38% | |||||
Putnam VT Discovery | 36,740,778 | First $500 million | 0.70% | 105,127 | Yes | Long-term growth |
Growth Fund | Next $500 million | 0.60% | of capital. | |||
Next $500 million | 0.55% | |||||
Next $5 billion | 0.50% | |||||
Next $5 billion | 0.475% | |||||
Next $5 billion | 0.455% | |||||
Next $5 billion | 0.44% | |||||
Next $5 billion | 0.43% | |||||
Next $5 billion | 0.42% | |||||
Next $5 billion | 0.41% | |||||
Next $5 billion | 0.40% | |||||
Next $5 billion | 0.39% | |||||
Next $8.5 billion | 0.38% | |||||
Any excess thereafter | 0.37% | |||||
Putnam VT | 479,813,483 | First $500 million | 0.70% | 2,933,530 | Yes | As high a level of |
Diversified | Next $500 million | 0.60% | current income as | |||
Income Fund | Next $500 million | 0.55% | Putnam Management | |||
Next $5 billion | 0.50% | believes is consistent | ||||
Next $5 billion | 0.475% | with preservation | ||||
Next $5 billion | 0.455% | of capital. | ||||
Next $5 billion | 0.44% | |||||
Any excess thereafter | 0.43% | |||||
Putnam VT Equity | 241,424,798 | First $500 million | 0.65% | 1,326,897 | Yes | Capital growth and |
Income Fund | Next $500 million | 0.55% | current income. | |||
Next $500 million | 0.50% | |||||
Next $5 billion | 0.45% | |||||
Next $5 billion | 0.425% | |||||
Next $5 billion | 0.405% | |||||
Next $5 billion | 0.39% | |||||
Any excess thereafter | 0.38% | |||||
Putnam VT The | 608,279,822 | First $500 million | 0.65% | 3,969,447 | Yes | To provide a balanced |
George Putnam | Next $500 million | 0.55% | investment composed | |||
Fund of Boston | Next $500 million | 0.50% | of a well diversified | |||
Next $5 billion | 0.45% | portfolio of stocks | ||||
Next $5 billion | 0.425% | and bonds which | ||||
Next $5 billion | 0.405% | produce both capital | ||||
Next $5 billion | 0.39% | growth and | ||||
Any excess thereafter | 0.38% | current income. | ||||
Putnam VT Global | 400,137,286 | First $500 million | 0.70% | 2,392,952 | Yes | A high level of |
Asset Allocation | Next $500 million | 0.60% | long-term total | |||
Fund | Next $500 million | 0.55% | return consistent | |||
Next $5 billion | 0.50% | with preservation | ||||
Next $5 billion | 0.475% | of capital. | ||||
Next $5 billion | 0.455% | |||||
Next $5 billion | 0.44% | |||||
Any excess thereafter | 0.43% | |||||
H-16
Has | ||||||
Amount of | compensation | |||||
Management | been waived, | |||||
Fee Paid in the | reduced or | |||||
Most Recent | otherwise | |||||
Fiscal Year | agreed to be | |||||
Net Assets | (after applicable | reduced | ||||
as of | waivers and | under any | Current | |||
December 31, | reimbursements, | applicable | Investment | |||
Fund | 2006 ($) | Current Management Fee Schedule | if any) ($) | contract? | Objective | |
Putnam VT Global | 608,067,124 | First $500 million | 0.80% | 4,692,325 | Yes | Capital appreciation. |
Equity Fund | Next $500 million | 0.70% | ||||
Next $500 million | 0.65% | |||||
Next $5 billion | 0.60% | |||||
Next $5 billion | 0.575% | |||||
Next $5 billion | 0.555% | |||||
Next $5 billion | 0.54% | |||||
Any excess thereafter | 0.53% | |||||
Putnam VT Growth | 4,101,216,725 | First $500 million | 0.65% | 20,729,712 | Yes | Capital growth and |
and Income Fund | Next $500 million | 0.55% | current income. | |||
Next $500 million | 0.50% | |||||
Next $5 billion | 0.45% | |||||
Next $5 billion | 0.425% | |||||
Next $5 billion | 0.405% | |||||
Next $5 billion | 0.39% | |||||
Any excess thereafter | 0.38% | |||||
Putnam VT Growth | 50,923,698 | First $500 million | 0.70% | 243,122 | Yes | Capital appreciation. |
Opportunities Fund | Next $500 million | 0.60% | ||||
Next $500 million | 0.55% | |||||
Next $5 billion | 0.50% | |||||
Next $5 billion | 0.475% | |||||
Next $5 billion | 0.455% | |||||
Next $5 billion | 0.44% | |||||
Next $5 billion | 0.43% | |||||
Any excess thereafter | 0.42% | |||||
Putnam VT Health | 270,659,925 | First $500 million | 0.70% | 2,204,609 | Yes | Capital appreciation. |
Sciences Fund | Next $500 million | 0.60% | ||||
Next $500 million | 0.55% | |||||
Next $5 billion | 0.50% | |||||
Next $5 billion | 0.475% | |||||
Next $5 billion | 0.455% | |||||
Next $5 billion | 0.44% | |||||
Any excess thereafter | 0.43% | |||||
Putnam VT High | 599,035,287 | First $500 million | 0.70% | 3,720,493 | Yes | High current income. |
Yield Fund | Next $500 million | 0.60% | Capital growth is a | |||
Next $500 million | 0.55% | secondary goal | ||||
Next $5 billion | 0.50% | when consistent | ||||
Next $5 billion | 0.475% | with achieving high | ||||
Next $5 billion | 0.455% | current income. | ||||
Next $5 billion | 0.44% | |||||
Any excess thereafter | 0.43% | |||||
Putnam VT | 737,543,099 | First $500 million | 0.65% | 3,498,163 | Yes | High current income |
Income Fund | Next $500 million | 0.55% | consistent with what | |||
Next $500 million | 0.50% | Putnam Management | ||||
Next $5 billion | 0.45% | believes to be | ||||
Next $5 billion | 0.425% | prudent risk. | ||||
Next $5 billion | 0.405% | |||||
Next $5 billion | 0.39% | |||||
Any excess thereafter | 0.38% | |||||
H-17
Has | ||||||
Amount of | compensation | |||||
Management | been waived, | |||||
Fee Paid in the | reduced or | |||||
Most Recent | otherwise | |||||
Fiscal Year | agreed to be | |||||
Net Assets | (after applicable | reduced | ||||
as of | waivers and | under any | Current | |||
December 31, | reimbursements, | applicable | Investment | |||
Fund | 2006 ($) | Current Management Fee Schedule | if any) ($) | contract? | Objective | |
Putnam VT | 1,267,657,390 | First $500 million | 0.80% | 8,271,996 | Yes | Capital appreciation. |
International | Next $500 million | 0.70% | ||||
Equity Fund | Next $500 million | 0.65% | ||||
Next $5 billion | 0.60% | |||||
Next $5 billion | 0.575% | |||||
Next $5 billion | 0.555% | |||||
Next $5 billion | 0.54% | |||||
Any excess thereafter | 0.53% | |||||
Putnam VT | 460,469,163 | First $500 million | 0.80% | 2,838,706 | Yes | Capital growth. |
International Growth | Next $500 million | 0.70% | Current income is a | |||
and Income Fund | Next $500 million | 0.65% | secondary objective. | |||
Next $5 billion | 0.60% | |||||
Next $5 billion | 0.575% | |||||
Next $5 billion | 0.555% | |||||
Next $5 billion | 0.54% | |||||
Any excess thereafter | 0.53% | |||||
Putnam VT | 287,674,855 | First $500 million | 1.00% | 2,485,049 | Yes | Long-term |
International New | Next $500 million | 0.90% | capital appreciation. | |||
Opportunities Fund | Next $500 million | 0.85% | ||||
Next $5 billion | 0.80% | |||||
Next $5 billion | 0.775% | |||||
Next $5 billion | 0.755% | |||||
Next $5 billion | 0.74% | |||||
Any excess thereafter | 0.73% | |||||
Putnam VT | 494,282,635 | First $500 million | 0.65% | 3,216,355 | Yes | Long-term growth |
Investors Fund | Next $500 million | 0.55% | of capital and any | |||
Next $500 million | 0.50% | increased income | ||||
Next $5 billion | 0.45% | that results from | ||||
Next $5 billion | 0.425% | this growth. | ||||
Next $5 billion | 0.405% | |||||
Next $5 billion | 0.39% | |||||
Any excess thereafter | 0.38% | |||||
Putnam VT Mid | 95,124,663 | First $500 million | 0.70% | 634,565 | Yes | Capital appreciation |
Cap Value Fund | Next $500 million | 0.60% | and, as a secondary | |||
Next $500 million | 0.55% | objective, current | ||||
Next $5 billion | 0.50% | income. | ||||
Next $5 billion | 0.475% | |||||
Next $5 billion | 0.455% | |||||
Next $5 billion | 0.44% | |||||
Any excess thereafter | 0.43% | |||||
Putnam VT Money | 399,752,655 | First $500 million | 0.45% | 1,529,264 | Yes | As high a rate of |
Market Fund | Next $500 million | 0.35% | current income as | |||
Next $500 million | 0.30% | Putnam Management | ||||
Next $5 billion | 0.25% | believes is consistent | ||||
Next $5 billion | 0.225% | with preservation of | ||||
Next $5 billion | 0.205% | capital and | ||||
Next $5 billion | 0.19% | maintenance | ||||
Any excess thereafter | 0.18% | of liquidity. | ||||
Putnam VT New | 1,291,099,249 | First $500 million | 0.70% | 8,663,759 | Yes | Long-term |
Opportunities Fund | Next $500 million | 0.60% | capital appreciation. | |||
Next $500 million | 0.55% | |||||
Next $5 billion | 0.50% | |||||
Next $5 billion | 0.475% | |||||
Next $5 billion | 0.455% | |||||
Next $5 billion | 0.44% | |||||
Any excess thereafter | 0.43% | |||||
H-18
Has | ||||||
Amount of | compensation | |||||
Management | been waived, | |||||
Fee Paid in the | reduced or | |||||
Most Recent | otherwise | |||||
Fiscal Year | agreed to be | |||||
Net Assets | (after applicable | reduced | ||||
as of | waivers and | under any | Current | |||
December 31, | reimbursements, | applicable | Investment | |||
Fund | 2006 ($) | Current Management Fee Schedule | if any) ($) | contract? | Objective | |
Putnam VT New | 679,407,446 | First $500 million | 0.70% | 4,475,605 | Yes | Long-term |
Value Fund | Next $500 million | 0.60% | capital appreciation. | |||
Next $500 million | 0.55% | |||||
Next $5 billion | 0.50% | |||||
Next $5 billion | 0.475% | |||||
Next $5 billion | 0.455% | |||||
Next $5 billion | 0.44% | |||||
Any excess thereafter | 0.43% | |||||
Putnam VT OTC & | 79,065,231 | First $500 million | 0.70% | 575,537 | Yes | Capital appreciation. |
Emerging Growth | Next $500 million | 0.60% | ||||
Fund | Next $500 million | 0.55% | ||||
Next $5 billion | 0.50% | |||||
Next $5 billion | 0.475% | |||||
Next $5 billion | 0.455% | |||||
Next $5 billion | 0.44% | |||||
Any excess thereafter | 0.43% | |||||
Putnam VT | 177,820,555 | First $500 million | 0.65% | 1,213,099 | Yes | Capital appreciation. |
Research Fund | Next $500 million | 0.55% | ||||
Next $500 million | 0.50% | |||||
Next $5 billion | 0.45% | |||||
Next $5 billion | 0.425% | |||||
Next $5 billion | 0.405% | |||||
Next $5 billion | 0.39% | |||||
Any excess thereafter | 0.38% | |||||
Putnam VT Small | 978,000,195 | First $500 million | 0.80% | 6,827,461 | Yes | Capital appreciation. |
Cap Value Fund | Next $500 million | 0.70% | ||||
Next $500 million | 0.65% | |||||
Next $5 billion | 0.60% | |||||
Next $5 billion | 0.575% | |||||
Next $5 billion | 0.555% | |||||
Next $5 billion | 0.54% | |||||
Any excess thereafter | 0.53% | |||||
Putnam VT Utilities | 382,902,568 | First $500 million | 0.70% | 2,437,187 | Yes | Capital growth and |
Growth and Income | Next $500 million | 0.60% | current income. | |||
Fund | Next $500 million | 0.55% | ||||
Next $5 billion | 0.50% | |||||
Next $5 billion | 0.475% | |||||
Next $5 billion | 0.455% | |||||
Next $5 billion | 0.44% | |||||
Any excess thereafter | 0.43% | |||||
Putnam VT | 420,426,636 | First $500 million | 0.65% | 3,006,605 | Yes | Capital appreciation. |
Vista Fund | Next $500 million | 0.55% | ||||
Next $500 million | 0.50% | |||||
Next $5 billion | 0.45% | |||||
Next $5 billion | 0.425% | |||||
Next $5 billion | 0.405% | |||||
Next $5 billion | 0.39% | |||||
Any excess thereafter | 0.38% | |||||
H-19
Has | ||||||
Amount of | compensation | |||||
Management | been waived, | |||||
Fee Paid in the | reduced or | |||||
Most Recent | otherwise | |||||
Fiscal Year | agreed to be | |||||
Net Assets | (after applicable | reduced | ||||
as of | waivers and | under any | Current | |||
December 31, | reimbursements, | applicable | Investment | |||
Fund | 2006 ($) | Current Management Fee Schedule | if any) ($) | contract? | Objective | |
Putnam VT | 1,860,346,341 | First $500 million | 0.70% | 11,832,070 | Yes | Capital appreciation. |
Voyager Fund | Next $500 million | 0.60% | ||||
Next $500 million | 0.55% | |||||
Next $5 billion | 0.50% | |||||
Next $5 billion | 0.475% | |||||
Next $5 billion | 0.455% | |||||
Next $5 billion | 0.44% | |||||
Any excess thereafter | 0.43% | |||||
* Due to expense limitations in effect during the fund’s fiscal year ended 02/28/06, Putnam Income Strategies Fund did not pay a management fee to Putnam Management. Figures for the fund’s most recent fiscal year are not yet available.
** The management fee schedule for Putnam Municipal Opportunities Trust represents fees paid only for investment advisory services. As described in this proxy statement, the fund also paid administrative fees to Putnam Management for administrative services.
*** The management fee schedule for Putnam Prime Money Market Fund represents fees paid only for investment advisory services. As described in this proxy statement, the fund also pays administrative fees to Putnam Management for administrative services.
****A revised management contract for Putnam Research Fund was approved by shareholders on December 14, 2006 to remove the incentive fee component from the management fee. Under the fund’s previous management contract, the fund paid Putnam Management a quarterly fee consisting of an asset-based component and an incentive component. The asset-based fee was subject to a performance adjustment based on the investment performance of the fund compared to the Standard & Poor’s 500 (S&P 500) composite Stock Price Index. Performance was calculated for these purposes at the beginning of each calendar quarter, for the thirty-six month period immediately preceding such quarter or the life of the fund, if shorter. The applicable asset-based fee was increased or decreased for each calendar quarter by an incentive payment or penalty at the annual rate of 0.01% of the fund’s average net assets for each 1.00% increment by which the fund outperformed or underp erformed the S&P 500 in excess of 3.00%, subject to a maximum increase or decrease of 0.07% of average net assets. The revised management contract provides for an eighteen-month transition period during which the fund’s fee will be the lesser of (i) the asset-based fee and (ii) the performance-adjusted fee that would have been calculated under the previous contract. The fund is currently in this transition period, which will end on June 30, 2008, after which the asset-based management fee will apply without performance-based adjustments.
† Due to expense limitations in effect during the most recent fiscal year, Putnam RetirementReady 2040 Fund, Putnam RetirementReady 2045 Fund, Putnam RetirementReady 2050 Fund and Putnam RetirementReady Maturity Fund did not pay management fees to Putnam Management.
^ Amounts for fiscal year ended 02/28/06. Figures for the fund’s most recent fiscal year are not yet available.
H-20
The following table contains certain information regarding other funds for which Putnam Management provides investment advisory services as a sub-adviser. Unlike the other funds addressed in this proxy statement, Putnam Management does not provide administrative or other services to these funds.
Has | |||||||||
compensation | |||||||||
been waived, | |||||||||
reduced or | |||||||||
otherwise | |||||||||
Amount of | agreed to be | ||||||||
Net Assets | Sub-Advisory | reduced | |||||||
as of | Fee Paid in the | under any | Current | ||||||
December 31, | Most Recent | applicable | Investment | Fiscal | |||||
Fund | 2006 ($) | Sub-Advisory Fee Rate | Fiscal Year ($) | contract? | Objective | Year | |||
Met Investors | 44,828,654 | 0.54% of average daily net assets†† | 244,961 | No | Long-term | Dec. 31, 2006 | |||
Series Trust: | growth of capital. | ||||||||
Met/Putnam | |||||||||
Capital | |||||||||
Opportunities | |||||||||
Portfolio | |||||||||
Valic Company I: | 432,979,141 | 0.50% of average daily net assets†† | 17,697√ | No | Capital | May 31,2006 | |||
Global Equity Fund | appreciation. | ||||||||
Valic Company I: | 185,427,002 | 0.63% of average daily net assets†† | 14,918√ | No | To produce | May 31, 2006 | |||
Small Cap Special | growth of capital | ||||||||
Values Fund√√ | by investing | ||||||||
primarily in | |||||||||
common stocks. | |||||||||
Seasons Series Trust | 393,715,244 | 0.45% of average daily net assets†† | 1,728,770 �� | Yes | Capital | May 31, 2006 | |||
— Asset Allocation: | appreciation. | ||||||||
Diversified Growth | |||||||||
Portfolio | |||||||||
JNL/Putnam | 141,960,660 | First $150 million | 0.45% | 694,815 | No | Long-term | May 31, 2006 | ||
Equity Fund | Next $150 million | 0.35% | capital growth. | ||||||
Excess thereafter | 0.30% | ||||||||
JNL/Putnam Midcap | 31,233,273 | First $250 million | 0.475% | 188,472 | No | Capital | May 31, 2006 | ||
Growth Fund | Excess thereafter | 0.40% | appreciation. | ||||||
SunAmerica Series | 234,230,726 | First $100 million | 0.85% | 1,891,099 | No | Long-term capital | Jan. 31, 2007 | ||
Trust Emerging | Next $100 million | 0.80% | appreciation. | ||||||
Markets Portfolio | Excess thereafter | 0.75% | |||||||
SunAmerica Series | 455,306,042 | First $150 million | 0.65% | 2,227,733 | No | Growth of capital, | Jan. 31, 2007 | ||
Trust: International | Next $150 million | 0.55% | and secondarily, | ||||||
Growth & Income | Excess thereafter | 0.45% | current income. | ||||||
Portfolio | |||||||||
SunAmerica Series | 170,785,085 | First $150 million | 0.50% | 709,398 | Yes | Capital | Jan. 31, 2007 | ||
Trust: Putnam Growth: | Next $150 million | 0.45% | appreciation. | ||||||
Voyager Portfolio | Excess thereafter | 0.35% | |||||||
†† The effective annual management fee rate is provided for these funds as the management fee schedule for each fund is not publicly disclosed.
√These amounts represent fees paid by each fund for a partial fiscal year, since each fund’s inception was December 5, 2005.
√√Putnam Management currently sub-advises approximately 50% of the fund’s assets, with the remainder being advised by another investment adviser. The net assets provided here represent only those assets of the fund sub-advised by Putnam Management.
H-21
APPENDIX I
Payments to Putnam Managementand its Affiliates
The following fees were paid by the funds to Putnam Management and its affiliates during each fund’s most recent fiscal year (other than under a management contract). These services will continue to be provided after the proposed management contract is approved; however, the funds have retained State Street Bank and Trust Company as custodian, and it is expected that Putnam Fiduciary Trust Company’s service as custodian will terminate during the first half of 2007 when all of the funds’ assets in its custody or the custody of its sub-custodians have been transferred into State Street Bank and Trust Company’s safekeeping.
Also, as described in this proxy statement, Putnam Prime Money Market Fund and Putnam Municipal Opportunities Trust paid administrative services fees to Putnam Management. Please refer to the footnotes to these particular funds inAppendix Efor information about the administrative services fees paid to Putnam Management during the most recent fiscal year.
Fees paid to | |||||
Fees paid to | Fees paid to | Putnam Retail | |||
Putnam Fiduciary | Putnam | Management | |||
Trust Company | Fiduciary | Limited | |||
for serving as | Trust Company | Partnership | |||
investor servicing | for serving as | pursuant to | |||
Fund | agent ($)* | custodian ($)* | distribution plans ($) | Fiscal Year End | |
Putnam American Government Income Fund | 1,306,503 | 236,148 | 2,407,457 | September 30, 2006 | |
Putnam AMT-Free Insured Municipal Fund | 168,922 | 116,080 | 1,281,572 | July 31, 2006 | |
Putnam Arizona Tax Exempt Income Fund | 38,915 | 46,131 | 283,374 | May 31, 2006 | |
Putnam Asset Allocation: Balanced Portfolio | 3,197,418 | 722,008 | 7,690,831 | September 30, 2006 | |
Putnam Asset Allocation: Conservative Portfolio | 1,751,830 | 450,008 | 2,498,757 | September 30, 2006 | |
Putnam Asset Allocation: Growth Portfolio | 3,385,542 | 1,560,157 | 7,209,776 | September 30, 2006 | |
Putnam California Investment Grade Municipal Trust | 34,777 | 41,090 | Not Applicable | April 30, 2006 | |
Putnam California Tax Exempt Income Fund | 687,684 | 169,424 | 5,547,728 | September 30, 2006 | |
Putnam Capital Appreciation Fund | 2,448,787 | 219,444 | 3,461,183 | May 31, 2006 | |
Putnam Capital Opportunities Fund | 3,432,751 | 347,870 | 3,827,544 | April 30, 2006 | |
Putnam Classic Equity Fund | 1,952,796 | 175,325 | 3,180,135 | November 30, 2006 | |
Putnam Convertible Income-Growth Trust | 781,757 | 137,389 | 2,235,945 | October 31, 2006 | |
Putnam Discovery Growth Fund | 5,314,129 | 180,530 | 4,788,597 | December 31, 2006 | |
Putnam Diversified Income Trust | 3,299,040 | 581,814 | 14,908,977 | September 30, 2006 | |
Putnam Equity Income Fund | 6,951,658 | 245,063 | 14,113,121 | November 30, 2006 | |
Putnam Europe Equity Fund | 1,372,486 | 573,492 | 2,634,957 | June 30, 2006 | |
Putnam Floating Rate Income Fund** | 175,806 | 129,462 | 1,244,466 | February 28, 2006 | |
The Putnam Fund for Growth and Income | 26,869,135 | 599,513 | 51,322,232 | October 31, 2006 | |
The George Putnam Fund of Boston | 9,125,947 | 480,131 | 18,216,870 | July 31, 2006 | |
Putnam Global Equity Fund | 5,695,273 | 1,368,894 | 8,397,834 | October 31, 2006 | |
Putnam Global Income Trust | 254,473 | 130,104 | 546,850 | October 31, 2006 | |
Putnam Global Natural Resources Fund | 1,043,084 | 301,780 | 2,729,494 | August 31, 2006 | |
Putnam Growth Opportunities Fund | 5,034,903 | 170,468 | 4,889,338 | July 31, 2006 | |
Putnam Health Sciences Trust | 6,313,802 | 507,220 | 12,527,764 | August 31, 2006 | |
Putnam High Income Securities Fund | 96,278 | 137,361 | Not Applicable | August 31, 2006 | |
Putnam High Yield Advantage Fund | 701,060 | 188,244 | 3,305,078 | November 30, 2006 | |
Putnam High Yield Municipal Trust | 86,711 | 104,108 | Not Applicable | March 31, 2006 | |
Putnam High Yield Trust | 3,593,375 | 247,504 | 9,404,607 | August 31, 2006 | |
I- 1
Fees paid to | |||||||
Fees paid to | Fees paid to | Putnam Retail | |||||
Putnam Fiduciary | Putnam | Management | |||||
Trust Company | Fiduciary | Limited | |||||
for serving as | Trust Company | Partnership | |||||
investor servicing | for serving as | pursuant to | |||||
Fund | agent ($)* | custodian ($)* | distribution plans ($) | Fiscal Year End | |||
Putnam Income Fund | 5,188,989 | 406,144 | 6,057,170 | October 31, 2006 | |||
Putnam Income Strategies Fund** | 1,014 | 6,428 | 9,348 | February 28, 2006 | |||
Putnam International Capital Opportunities Fund | 3,486,799 | 1,655,998 | 7,485,283 | August 31, 2006 | |||
Putnam International Equity Fund | 15,299,530 | 6,653,687 | 24,900,584 | June 30, 2006 | |||
Putnam International Growth and Income Fund | 2,170,028 | 851,927 | 3,774,490 | June 30, 2006 | |||
Putnam International New Opportunities Fund | 2,552,793 | 777,569 | 3,072,562 | September 30, 2006 | |||
Putnam Investment Grade Municipal Trust | 112,961 | 124,251 | Not Applicable | November 30, 2006 | |||
Putnam Investors Fund | 11,541,559 | 295,418 | 16,725,612 | July 31, 2006 | |||
Putnam Limited Duration Government Income Fund | 1,035,304 | 174,392 | 1,485,486 | November 30, 2006 | |||
Putnam Managed Municipal Income Trust | 188,595 | 145,207 | Not Applicable | October 31, 2006 | |||
Putnam Massachusetts Tax Exempt Income Fund | 141,481 | 110,395 | 1,112,889 | May 31, 2006 | |||
Putnam Master Intermediate Income Trust | 340,900 | 289,863 | Not Applicable | September 30, 2006 | |||
Putnam Michigan Tax Exempt Income Fund | 75,770 | 56,902 | 411,398 | May 31, 2006 | |||
Putnam Mid Cap Value Fund | 2,439,108 | 144,668 | 4,523,402 | April 30, 2006 | |||
Putnam Minnesota Tax Exempt Income Fund | 78,884 | 54,736 | 405,217 | May 31, 2006 | |||
Putnam Money Market Fund | 7,108,735 | 26,396 | 1,813,923 | September 30, 2006 | |||
Putnam Municipal Bond Fund | 118,092 | 126,202 | Not Applicable | April 30, 2006 | |||
Putnam Municipal Opportunities Trust | 105,176 | 117,534 | Not Applicable | April 30, 2006 | |||
Putnam New Jersey Tax Exempt Income Fund | 109,963 | 87,009 | 815,048 | May 31, 2006 | |||
Putnam New Opportunities Fund | 18,449,214 | 284,869 | 19,722,612 | June 30, 2006 | |||
Putnam New Value Fund | 4,874,321 | 175,324 | 8,846,785 | August 31, 2006 | |||
Putnam New York Investment Grade Municipal Trust | 19,398 | 26,438 | Not Applicable | April 30, 2006 | |||
Putnam New York Tax Exempt Income Fund | 572,969 | 147,793 | 2,977,860 | November 30, 2006 | |||
Putnam Ohio Tax Exempt Income Fund | 96,299 | 91,003 | 504,029 | May 31, 2006 | |||
Putnam OTC & Emerging Growth Fund | 5,529,799 | 169,354 | 4,424,411 | July 31, 2006 | |||
Putnam Pennsylvania Tax Exempt Income Fund | 107,359 | 78,985 | 613,022 | May 31, 2006 | |||
Putnam Premier Income Trust | 677,416 | 366,332 | Not Applicable | July 31, 2006 | |||
Putnam Prime Money Market Fund | 320,694 | 49,161 | 10,226 | September 30, 2006 | |||
Putnam Research Fund | 3,274,639 | 168,708 | 4,752,048 | July 31, 2006 | |||
Putnam RetirementReady 2010 Fund | Not Applicable | Not Applicable | 108,176 | July 31, 2006 | |||
Putnam RetirementReady 2015 Fund | Not Applicable | Not Applicable | 153,376 | July 31, 2006 | |||
Putnam RetirementReady 2020 Fund | Not Applicable | Not Applicable | 175,406 | July 31, 2006 | |||
Putnam RetirementReady 2025 Fund | Not Applicable | Not Applicable | 143,679 | July 31, 2006 | |||
Putnam RetirementReady 2030 Fund | Not Applicable | Not Applicable | 100,250 | July 31, 2006 | |||
Putnam RetirementReady 2035 Fund | Not Applicable | Not Applicable | 67,617 | July 31, 2006 | |||
Putnam RetirementReady 2040 Fund | Not Applicable | Not Applicable | 42,154 | July 31, 2006 | |||
Putnam RetirementReady 2045 Fund | Not Applicable | Not Applicable | 29,079 | July 31, 2006 | |||
Putnam RetirementReady 2050 Fund | Not Applicable | Not Applicable | 3,856 | July 31, 2006 | |||
Putnam RetirementReady Maturity Fund | Not Applicable | Not Applicable | 74,474 | July 31, 2006 | |||
Putnam Small Cap Growth Fund | 1,303,853 | 172,809 | 1,727,604 | June 30, 2006 | |||
I- 2
Fees paid to | ||||||
Fees paid to | Fees paid to | Putnam Retail | ||||
Putnam Fiduciary | Putnam | Management | ||||
Trust Company | Fiduciary | Limited | ||||
for serving as | Trust Company | Partnership | ||||
investor servicing | for serving as | pursuant to | ||||
Fund | agent ($)* | custodian ($)* | distribution plans ($) | Fiscal Year End | ||
Putnam Small Cap Value Fund** | 1,721,218 | 189,821 | 4,206,106 | February 28, 2006 | ||
Putnam Tax Exempt Income Fund | 619,569 | 157,244 | 2,965,084 | September 30, 2006 | ||
Putnam Tax Exempt Money Market Fund | 92,314 | 7,225 | Not Applicable | September 30, 2006 | ||
Putnam Tax-Free Health Care Fund | 96,730 | 89,104 | Not Applicable | May 31, 2006 | ||
Putnam Tax-Free High Yield Fund | 876,144 | 181,530 | 4,924,806 | July 31, 2006 | ||
Putnam Tax Smart Equity Fund® | 308,021 | 136,425 | 1,725,253 | October 31, 2006 | ||
Putnam U.S. Government Income Trust | 1,912,986 | 524,492 | 4,893,122 | September 30, 2006 | ||
Putnam Utilities Growth and Income Fund | 969,213 | 343,106 | 1,921,475 | October 31, 2006 | ||
Putnam Vista Fund | 7,285,460 | 292,982 | 10,325,341 | July 31, 2006 | ||
Putnam Voyager Fund | 30,585,086 | 398,461 | 32,965,281 | July 31, 2006 | ||
Putnam VT American Government Income Fund | 48,941 | 114,013 | 173,639 | December 31, 2006 | ||
Putnam VT Capital Appreciation Fund | 15,725 | 65,351 | 57,034 | December 31, 2006 | ||
Putnam VT Capital Opportunities Fund | 12,527 | 54,559 | 46,005 | December 31, 2006 | ||
Putnam VT Discovery Growth Fund | 11,659 | 63,423 | 65,208 | December 31, 2006 | ||
Putnam VT Diversified Income Fund | 145,032 | 268,013 | 425,943 | December 31, 2006 | ||
Putnam VT Equity Income Fund | 61,671 | 104,545 | 236,721 | December 31, 2006 | ||
Putnam VT The George Putnam Fund of Boston | 194,190 | 268,645 | 744,815 | December 31, 2006 | ||
Putnam VT Global Asset Allocation Fund | 118,715 | 433,160 | 193,024 | December 31, 2006 | ||
Putnam VT Global Equity Fund | 178,611 | 512,462 | 184,854 | December 31, 2006 | ||
Putnam VT Growth and Income Fund | 1,270,937 | 311,396 | 1,981,707 | December 31, 2006 | ||
Putnam VT Growth Opportunities Fund | 15,810 | 48,399 | 75,526 | December 31, 2006 | ||
Putnam VT Health Sciences Fund | 95,118 | 155,996 | 444,903 | December 31, 2006 | ||
Putnam VT High Yield Fund | 181,736 | 189,665 | 413,089 | December 31, 2006 | ||
Putnam VT Income Fund | 231,988 | 265,541 | 738,885 | December 31, 2006 | ||
Putnam VT International Equity Fund | 338,452 | 1,358,361 | 1,823,795 | December 31, 2006 | ||
Putnam VT International Growth and Income Fund | 121,377 | 546,929 | 291,287 | December 31, 2006 | ||
Putnam VT International New Opportunities Fund | 82,490 | 369,808 | 400,747 | December 31, 2006 | ||
Putnam VT Investors Fund | 148,076 | 182,489 | 563,681 | December 31, 2006 | ||
Putnam VT Mid Cap Value Fund | 27,834 | 51,386 | 73,775 | December 31, 2006 | ||
Putnam VT Money Market Fund | 110,530 | 135,076 | 411,984 | December 31, 2006 | ||
Putnam VT New Opportunities Fund | 415,595 | 187,781 | 381,899 | December 31, 2006 | ||
Putnam VT New Value Fund | 200,902 | 140,816 | 676,015 | December 31, 2006 | ||
Putnam VT OTC & Emerging Growth Fund | 25,507 | 60,623 | 91,357 | December 31, 2006 | ||
Putnam VT Research Fund | 56,664 | 91,120 | 272,176 | December 31, 2006 | ||
Putnam VT Small Cap Value Fund | 276,850 | 215,429 | 1,582,848 | December 31, 2006 | ||
Putnam VT Utilities Growth and Income Fund | 113,131 | 278,585 | 146,590 | December 31, 2006 | ||
Putnam VT Vista Fund | 167,571 | 190,972 | 628,075 | December 31, 2006 | ||
Putnam VT Voyager Fund | 569,884 | 211,176 | 1,114,380 | December 31, 2006 | ||
* Excludes custody credits and investor servicing credits.
** Amounts for fiscal year ended 02/28/06. Figures for the fund’s most recent fiscal year are not yet available.
I- 3
APPENDIX J
5% beneficial ownership:Beneficial Ownership
As of June 30, 2006,February 9, 2007, to the knowledge of the Putnam funds, no person owned beneficially or of record 5% or more of any class of shares of any Putnam fund, except as follows:shown in the tables below. Additional ownership information for the Putnam closed-end funds is shown separately at the end of this Appendix J.
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
Putnam American Government Income Fund | ||
CLASS C | ||
Bickley Printing SEP IRA Plan | ||
1225 Norton Ave | ||
Glendale, CA 91202-2030 | 32,166.81 | 8.90% |
CLASS M | ||
Harold Azmelian, Philip Arpiarian & | ||
Armen Kalbian As TTEE | ||
Holy Cross Church Endowment Trst | ||
770 Anderson Ave Apt 15K | ||
Cliffside Pk, NJ 07010-2169 | 22,881.20 | 9.70% |
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 52,560.96 | 22.30% |
Travel Store, Inc.** | 18,454.00 | 7.84% |
American Broadcast EFCU 401(K) & | ||
Profit Sharing Plan* | 16,565.00 | 7.04% |
CLASS R | ||
MCB Trust Services As Agent For | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 6,299.05 | 97.80% |
CLASS Y | ||
Building Service Local 32b-J | ||
Supplemental Retirement Savings Plan** | 605,464.00 | 57.29% |
Putnam Investments Profit Sharing Plan* | 188,566.00 | 17.84% |
Putnam AMT-Free Insured Municipal Fund | ||
CLASS A | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 937,040.19 | 5.10% |
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 2,570,441.82 | 14.10% |
CLASS B | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 178,615.89 | 5.80% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 212,789.69 | 6.90% |
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 258,300.36 | 8.40% |
CLASS C | ||
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 98,771.20 | 17.20% |
J.J.B. Hilliard, W.L. Lyons, Inc | ||
501 S.4th Street | ||
Louisville, KY 40202 | 41,802.53 | 7.30% |
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
CLASS C | ||
NFS LLC FEBO | ||
its Customers | ||
5769 Pray St | ||
Bonita, CA 91902 | 31,698.04 | 5.50% |
CLASS M | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 32,385.59 | 44.70% |
Pershing LLC | ||
P. O. Box 2052 | ||
Jersey City, NJ 07303 | 13,828.44 | 19.00% |
Joan M Novak & Eugene S. Novak | ||
2091 E Parkview Cir | ||
Hoffman Est, IL 60169-2644 | 4,915.46 | 6.70% |
Putnam Arizona Tax Exempt Income Fund | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 1,635,301.84 | 19.50% |
CLASS B | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 67,236.23 | 6.60% |
CLASS C | ||
Putnam LLC | ||
The Putnam Companies, Inc. | ||
One Post Office Square | ||
Boston, MA 02109-2106 | 1,098.02 | 100.00% |
CLASS M | ||
LPL Financial Services | ||
9785 Towne Centre Drive | ||
San Diego, CA 92121-1968 | 28,739.25 | 19.40% |
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 31,196.03 | 21.10% |
Pershing LLC | ||
P.O. Box 2052 | ||
Jersey City, NJ 07303-9998 | 19,602.04 | 13.20% |
L & F Investments Ltd Partnership | ||
4121 N 64th Pl | ||
Scottsdale, AZ 85251-3109 | 33,437.68 | 22.70% |
Putnam Asset Allocation: Balanced Portfolio | ||
CLASS A | ||
Mercer Trust Company | ||
1 Investors Way | ||
Norwood, MA 02062-1599 | 9,371,204.58 | 7.60% |
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 12,828,440.93 | 10.50% |
J-1
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
Putnam Asset Allocation: Balanced Portfolio, continued | ||
CLASS C | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 596,561.87 | 5.10% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 1,121,584.97 | 9.60% |
CLASS M | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 264,326.80 | 8.80% |
CLASS R | ||
Counsel Trust Co | ||
Corporate Benefit Services Of | ||
American And Affiliates Retirement Plan | ||
336 4th Ave Ste 5 | ||
PIttsburgh, PA 15222-2004 | 558,406.74 | 66.50% |
CLASS Y | ||
IBEW Local 3** | 3,682,426.00 | 23.87% |
Kinder Morgan Savings Plan** | 2,708,037.00 | 17.56% |
Ironworkers St. Louis District | ||
Council Annuity Trust Fund** | 1,146,805.00 | 7.43% |
Cenveo Corporation 401(K) Plan** | 897,297.00 | 5.82% |
Arch Coal, Inc. Employee Thrift Plan** | 854,655.00 | 5.54% |
Putnam Investments | ||
Profit Sharing Plan* | 824,774.00 | 5.35% |
Genlyte Thomas Group Retirement | ||
Savings And Investment Plan** | 791,025.00 | 5.13% |
United Way Of Massachusetts | ||
51 Sleeper St. | ||
Boston, MA 02210-1208 | 779,157.00 | 5.00% |
Putnam Asset Allocation: Conservative Portfolio | ||
CLASS A | ||
Ironworkers St. Louis District | ||
Council Annuity Trust Fund** | 3,367,899.00 | 7.08% |
Edward D. Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 3,156,069.00 | 6.60% |
CLASS B | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 485,679.63 | 5.50% |
CLASS C | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 383,578.45 | 7.50% |
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 320,521.96 | 6.30% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 408,205.01 | 8.00% |
CLASS M | ||
Mercer Trust Company | ||
1 Investors Way | ||
Norwood, MA 02062-1599 | 85,547.78 | 6.80% |
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
CLASS M | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 74,227.36 | 6.00% |
National City Bank | ||
P.O. Box 94984 | ||
Cleveland, OH 44101-4984 | 228,185.22 | 18.40% |
CLASS R | ||
MG Trust Company As Agent For | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 8,218.71 | 6.80% |
MG Trust Company Cust. FBO | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 20,601.75 | 17.10% |
MG Trust Company FBO | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 7,249.71 | 6.00% |
Counsel Trust Co | ||
Corporate Benefit Services | ||
Of America And Affiliates | ||
Retirement Plan | ||
336 4th Ave Ste 5 | ||
PIttsburgh, PA 15222-2004 | 31,902.23 | 26.80% |
CLASS Y | ||
Building Service Local 32b-J | ||
Supplemental Retirement | ||
Savings Plan** | 37,485,779.00 | 89.47% |
Putnam Asset Allocation: Growth Portfolio | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 12,325,377.19 | 12.20% |
CLASS B | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 1,505,905.82 | 5.10% |
CLASS C | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 1,112,482.10 | 8.20% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 1,919,512.93 | 14.20% |
CLASS M | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 186,629.23 | 5.70% |
CLASS R | ||
Counsel Trust Co | ||
Corporate Benefit Services | ||
Of American And Affiliates | ||
Retirement Plan | ||
336 4th Ave Ste 5 | ||
PIttsburgh, PA 15222-2004 | 192,346.35 | 36.90% |
J-2
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
CLASS Y | ||
IBEW Local 3** | 4,835,022.00 | 36.67% |
Kinder Morgan Savings Plan** | 2,109,804.00 | 16.00% |
Putnam Investments | ||
Profit Sharing Plan* | 1,854,414.00 | 14.07% |
Ironworkers St. Louis District | ||
Council Annuity Trust Fund** | 1,599,228.00 | 12.13% |
Cenveo Corporation 401(K) Plan** | 879,500.00 | 6.67% |
Putnam California Investment Grade Municipal Trust | ||
COMMON SHARES | ||
Cede & Co Fast | ||
20 Bowling Green | ||
New York, NY 10004-1408 | 4,293,448.79 | 95.00% |
Putnam California Tax Exempt Income Fund | ||
CLASS A | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 21,321,710.75 | 9.00% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 17,371,696.27 | 7.30% |
CLASS B | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 1,354,535.44 | 10.50% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 1,130,699.39 | 8.80% |
CLASS C | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 268,293.77 | 9.90% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 346,116.45 | 12.80% |
CLASS M | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 191,262.38 | 27.20% |
Kathleen L Bernath, as Trustee | ||
Of The Edward & Kathleen Bernath | ||
Revocable Trust | ||
650 Harrison Ave | ||
Claremont, CA 91711-4538 | 37,496.86 | 5.30% |
William L Rosenberg, as Trustee | ||
Rosenberg Family Trust | ||
4754 La Villa Marina | ||
Marina Dl Rey, CA 90292-7049 | 63,519.47 | 9.00% |
Dawn Brenner, as Trustee | ||
Simms Survivor Trust | ||
Grant Bennett Associates | ||
425 River Park Dr Ste 250 | ||
Sacramento, CA 95815 | 42,034.28 | 5.90% |
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
Putnam Capital Appreciation Fund | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 2,092,848.38 | 8.90% |
CLASS C | ||
UBS Financial Services Inc. FBO | ||
its Customers | ||
Montgomery Pulmonary Consultants PA | ||
1440 Narrow Lane Pkwy | ||
Montgomery, AL 36111-2654 | 9,353.40 | 5.40% |
CLASS M | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 31,300.47 | 5.10% |
CLASS R | ||
MG Trust Company Cust. FBO | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 1,509.68 | 32.60% |
MG Trust Custodian | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 2,312.41 | 49.90% |
Julianna R Kinstler | ||
223 E Wisconsin Ave | ||
Monticello, WI 53570-9632 | 286.71 | 6.20% |
CLASS Y | ||
Putnam Investments Profit | ||
Sharing Plan* | 236,920.00 | 75.10% |
Putnam Investments** | 31,040.00 | 9.84% |
Putnam Capital Opportunities Fund | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 4,519,578.42 | 10.90% |
CLASS B | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 825,313.08 | 5.00% |
CLASS C | ||
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 148,509.35 | 5.00% |
CLASS M | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 87,590.84 | 6.20% |
CLASS R | ||
MCB Trust Services As Agent For | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 11,955.82 | 7.10% |
MG Trust Company Cust. FBO | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 19,019.52 | 11.30% |
J-3
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
Putnam Capital Opportunities Fund, continued | ||
CLASS R | ||
MG Trust Custodian | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 30,455.20 | 18.00% |
CLASS Y | ||
Ohio Tuition Trust Authority/ | ||
College Advantage Program*** | 11,242,432.00 | 31.70% |
Putnam Classic Equity Fund | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 9,127,506.06 | 22.40% |
CLASS B | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 730,619.77 | 11.30% |
CLASS M | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 367,860.58 | 20.40% |
CLASS R | ||
MG Trust Custodian | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 833.71 | 33.60% |
Trustlynx & Co | ||
P.O. Box 173736 | ||
Denver, CO 80217-3736 | 1,449.18 | 58.50% |
CLASS Y | ||
Putnam Investments Profit Sharing Plan* | 284,837.00 | 78.28% |
Putnam Convertible Income-Growth Trust | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 3,915,801.31 | 12.20% |
CLASS B | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 121,822.36 | 5.10% |
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 144,529.65 | 6.10% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 170,971.62 | 7.20% |
CLASS C | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 79,363.54 | 6.10% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 439,968.63 | 34.10% |
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
CLASS M | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 25,671.50 | 8.50% |
Nationwide Trust Co | ||
C/O IPO Portfolio Accounting | ||
P.O. Box 182029 | ||
Columbus, OH 43218-2029 | 16,486.10 | 5.40% |
CLASS R | ||
MG Trust Company Cust | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 32,926.36 | 55.50% |
MG Trust Custodian | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 3,309.08 | 5.50% |
Reliance Trust Company | ||
P.O. Box 48529 | ||
Atlanta, GA 30362-1529 | 17,849.27 | 30.10% |
CLASS Y | ||
Putnam Investments Profit Sharing Plan* | 222,631.00 | 17.76% |
Madison Paper Industries Savings & | ||
Investment Plan** | 95,412.00 | 7.61% |
Putnam Discovery Growth Fund | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 2,460,000.57 | 9.50% |
CLASS B | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 731,207.18 | 5.70% |
CLASS C | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 135,360.24 | 8.00% |
CLASS M | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 71,537.95 | 6.80% |
CLASS R | ||
MG Trust Company Cust. FBO | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 600.62 | 14.50% |
MG Trust Custodian | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 3,244.52 | 78.40% |
CLASS Y | ||
Putnam Investments Profit Sharing Plan* | 386,717.00 | 76.51% |
Putnam Investments** | 36,581.00 | 7.24% |
J-4
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
Putnam Diversified Income Trust | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 13,538,140.81 | 9.70% |
CLASS B | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 1,556,245.16 | 6.20% |
CLASS C | ||
SMBC Friend Securities Co., Ltd | ||
Foreign Securities Dept | ||
7-12 Kabuto-Cho Nihonbashi, | ||
CHUO-KU | ||
Tokyo 103 Japan | 5,782,900.00 | 49.70% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 798,898.53 | 6.80% |
CLASS M | ||
SMBC Friend Securities Co., Ltd | ||
Foreign Securities Dept | ||
7-12 Kabuto-Cho Nihonbashi, | ||
CHUO-KU | ||
Tokyo 103 Japan | 91,082,520.00 | 97.30% |
CLASS R | ||
MG Trust Company Cust. FBO | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 19,962.07 | 23.00% |
MG Trust Custodian | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 37,020.27 | 42.50% |
CLASS Y | ||
Marsh & McLennan Deferred | ||
Compensation Plans | ||
1166 Avenue Of The Americas | ||
New York, NY 10036-2774 | 758,765.00 | 47.37% |
Putnam Investments Profit Sharing Plan* | 518,652.00 | 31.15% |
Putnam Equity Income Fund | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 37,931,042.36 | 24.10% |
CLASS B | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 4,408,083.78 | 13.30% |
CLASS C | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 307,531.42 | 5.50% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 417,653.61 | 7.40% |
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
CLASS M | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 667,002.28 | 20.70% |
CLASS R | ||
Martin Prakken & Tom O’Connell, | ||
Blueprint Automation Ret Pln | ||
16037 Innovation Dr | ||
Colonial Hgts, VA 23834-5951 | 13,936.94 | 5.10% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 29,226.65 | 10.70% |
Hartford Life Insurance | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 31,936.51 | 11.70% |
CLASS Y | ||
IBEW Local 3** | 3,545,775.00 | 22.13% |
Marsh & McLennan Supplemental | ||
Retirement Plan** | 3,393,455.00 | 21.18% |
Emerson Electric Co. Employee | ||
Savings Investment Plan** | 1,876,013.00 | 11.71% |
Putnam Europe Equity Fund | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 817,402.34 | 5.70% |
CLASS C | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 19,014.05 | 9.10% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 23,756.63 | 11.40% |
CLASS M | ||
SMBC Friend Securities Co., Ltd | ||
Foreign Securities Dept | ||
7-12 Kabuto-Cho Nihonbashi, | ||
CHUO-KU | ||
Tokyo 103 Japan | 130,450.00 | 28.60% |
CLASS R | ||
MG Trust Company Cust. FBO | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 1,489.38 | 78.20% |
CLASS Y | ||
Putnam Investments Profit Sharing Plan* | 224,234.00 | 69.79% |
Putnam Investments** | 37,594.00 | 11.70% |
Putnam Floating Rate Income Fund | ||
CLASS A | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 2,192,572.81 | 6.40% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 5,710,932.18 | 16.80% |
J-5
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
Putnam Floating Rate Income Fund, continued | ||
CLASS A | ||
Charles Schwab & Co Inc | ||
101 Montgomery St | ||
San Francisco, CA 94022-3120 | 1,947,843.94 | 5.70% |
CLASS C | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 1,207,960.68 | 10.80% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 3,502,943.68 | 31.30% |
CLASS M | ||
McDonald Investments Inc | ||
(FBO its Customers) | ||
4900 Tiedeman Rd | ||
Brooklyn, OH 44144 | 100,359.63 | 13.60% |
NFS LLC FEBO | ||
its Customers | ||
5769 Pray St | ||
Bonita, CA 91902 | 72,558.72 | 9.90% |
Pershing LLC | ||
P. O. Box 2052 | ||
Jersey City, NJ 07303 | 50,049.45 | 6.80% |
Morgan Stanley DW Inc. FBO | ||
its Customers | ||
P.O. Box 250 Church Street Station | ||
New York, NY 10008-0250 | 78,133.63 | 10.60% |
CLASS R | ||
MG Trust Custodian | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 22,857.71 | 69.30% |
Pershing LLC | ||
P. O. Box 2052 | ||
Jersey City, NJ 07303 | 3,299.00 | 10.00% |
CLASS Y | ||
Putnam Investments Profit Sharing Plan* | 188,627.00 | 54.54% |
Putnam Investments** | 139,302.00 | 40.27% |
The Putnam Fund for Growth and Income | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 73,509,660.93 | 12.40% |
CLASS B | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 6,362,082.59 | 8.30% |
CLASS C | ||
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 249,475.66 | 5.20% |
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 286,637.16 | 6.00% |
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
CLASS M | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 849,730.86 | 16.00% |
CLASS R | ||
MG Trust Company As Agent For | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 4,372.41 | 6.10% |
MG Trust Custodian | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 22,061.49 | 30.60% |
CLASS Y | ||
Electrical Contractors Association And | ||
Local Union 134, IBEW Joint | ||
Pension Trust Of Chicago** | 9,728,228.00 | 14.67% |
Abbott Laboratories Stock | ||
Retirement Programs** | 7,393,069.00 | 11.15% |
The George Putnam Fund of Boston | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 31,807,107.59 | 17.60% |
CLASS B | ||
Edward D Jones & Co | ||
201 Progress Pkwy, | ||
Maryland Hts, MO 63043-3003 | 3,469,674.47 | 11.60% |
CLASS C | ||
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 279,122.58 | 6.90% |
CLASS M | ||
Carwash & Co | ||
ADP/State St Collective Trust | ||
200 Newport Avenue Ext, | ||
Quincy, MA 02171-2102 | 7,083,002.28 | 68.00% |
CLASS R | ||
MG Trust Company Cust | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 5,231.18 | 5.00% |
MG Trust Company Cust. FBO | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 11,740.95 | 11.30% |
MG Trust Custodian | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 13,190.13 | 12.50% |
MG Trust Company As Agent For | ||
its Customers | ||
P.O. Box 10699 | ||
Fargo, ND 58106-0699 | 25,414.78 | 24.50% |
CLASS Y | ||
Abbott Laboratories Stock | ||
Retirement Programs** | 3,887,847.00 | 18.16% |
IBEW Local 3** | 2,614,706.00 | 12.22% |
Marsh & McLennan Supplemental | ||
Retirement Plan** | 2,107,279.00 | 9.85% |
J-6
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
The George Putnam Fund of Boston, continued | ||
CLASS Y | ||
Electrical Contractors Association And | ||
Local Union 134, IBEW Joint Pension | ||
Trust Of Chicago** | 1,323,838.00 | 6.19% |
Cenveo Corporation 401(K) Plan** | 1,211,292.00 | 5.66% |
The Canadaigua Brands, Inc. 401(K) | ||
And Profit Sharing Plan** | 1,163,239.00 | 5.43% |
Putnam Global Equity Fund | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 13,205,302.77 | 8.50% |
CLASS C | ||
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 186,523.37 | 6.00% |
CLASS M | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 217,202.27 | 7.40% |
CLASS R | ||
MG Trust Company Cust. FBO | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 47,942.22 | 40.10% |
MG Trust Custodian | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 8,829.14 | 7.30% |
MG Trust Company As Agent For | ||
its Customers | ||
P.O. Box 10699 | ||
Fargo, ND 58106-0699 | 28,305.74 | 23.70% |
CLASS Y | ||
Putnam Investments Profit Sharing Plan* | 1,023,118.00 | 41.74% |
Marsh & McLennan Deferred | ||
Compensation Plans | ||
1166 Avenue Of The Americas | ||
New York, NY 10036-2774 | 581,636.00 | 23.73% |
Putnam Investments** | 323,948.00 | 13.22% |
Putnam Global Income Trust | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 558,663.42 | 7.80% |
CLASS C | ||
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 37,112.90 | 15.00% |
CLASS M | ||
Mitsubishi UFJ Securities Co Ltd | ||
Marunouchi Building 2-4-1 | ||
Marunouchi Chiyoda-Ku | ||
Tokyo 100-6317 Japan 104 | 1,417,900.00 | 83.60% |
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
CLASS R | ||
MG Trust Company Cust. FBO | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 3,765.04 | 36.40% |
MG Trust Custodian | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 4,724.50 | 45.60% |
CLASS Y | ||
Putnam Investments Profit Sharing Plan* | 162,556.00 | 72.28% |
Putnam Investments** | 45,470.00 | 20.22% |
Putnam Global Natural Resources Fund | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 1,142,000.65 | 7.20% |
CLASS B | ||
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 194,271.03 | 5.10% |
CLASS C | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 40,437.09 | 5.20% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 54,105.86 | 7.00% |
CLASS M | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 18,409.47 | 7.00% |
CLASS R | ||
MG Trust Company Cust | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 5,779.84 | 6.20% |
MG Trust Company Cust. FBO | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 8,945.36 | 9.50% |
MG Trust Custodian | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 8,924.01 | 9.40% |
Capital Bank & Trust Co | ||
Hillerich & Bradsby | ||
8515 E Orchard Rd # 2T2 | ||
Greenwood Vlg, CO 80111-5002 | 13,217.59 | 14.10% |
MLPF&S For The Sole Benefit | ||
Of Its Customers, | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 4,740.14 | 5.00% |
Reliance Trust Company | ||
P.O. Box 48529 | ||
Atlanta, GA 30362-1529 | 5,991.19 | 6.40% |
Wachovia Bank Various Retirement Plans | ||
1525 West Wt Harris Blvd | ||
Charlotte, NC 28288-1151 | 6,433.38 | 6.90% |
J-7
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
Putnam Global Natural Resources Fund, continued | ||
CLASS Y | ||
Putnam Investments Profit Sharing Plan* | 293,572.00 | 60.98% |
Putnam Investments** | 73,269.00 | 15.22% |
Putnam Growth Opportunities Fund | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 2,112,021.68 | 8.50% |
CLASS B | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 918,723.11 | 5.30% |
CLASS C | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 131,431.00 | 7.10% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 138,270.20 | 7.50% |
CLASS M | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 32,837.85 | 5.00% |
CLASS R | ||
MG Trust Company Cust. FBO | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 408.91 | 5.60% |
MG Trust Company Trustee | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 490.82 | 6.80% |
MG Trust Custodian | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 5,008.79 | 69.50% |
CLASS Y | ||
Putnam Investments Profit Sharing Plan* | 446,666.00 | 81.87% |
Putnam Investments** | 27,438.00 | 5.03% |
Putnam Health Sciences Trust | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 3,029,024.60 | 10.40% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 2,269,683.05 | 7.80% |
CLASS B | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 473,264.44 | 5.60% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 572,007.59 | 6.80% |
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
CLASS C | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 79,260.65 | 12.00% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 81,335.73 | 12.30% |
CLASS M | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 33,563.70 | 7.50% |
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 30,231.28 | 6.70% |
CLASS R | ||
Wachovia Bank | ||
1525 West Wt Harris Blvd | ||
Charlotte, NC 28288 | 775.47 | 5.70% |
MG Trust Custodian | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 1,900.40 | 13.90% |
MG Trust Company Cust. FBO | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 739.48 | 5.40% |
Capital Bank & Trust Co Hancock | ||
Concrete Products Inc | ||
8515 E Orchard Rd # 2T2 | ||
Greenwood Vlg, CO 80111-5002 | 2,033.30 | 14.90% |
CLASS Y | ||
Putnam Investments Profit Sharing Plan* | 188,688.00 | 54.71% |
Putnam Investments** | 55,513.00 | 16.18% |
Putnam High Income Securities Fund | ||
COMMON SHARES | ||
Cede & Co Fast | ||
20 Bowling Green | ||
New York, NY 10004-1408 | 20,309,109.29 | 94.20% |
Putnam High Yield Advantage Fund | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 8,501,964.89 | 12.30% |
Hartford Life Insurance | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 5,584,317.22 | 8.10% |
CLASS B | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 188,490.57 | 7.80% |
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 212,054.56 | 8.80% |
J-8
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
Putnam High Yield Advantage Fund, continued | ||
CLASS M | ||
Mitsubishi UFJ Securities Co Ltd | ||
Marunouchi Building 2-4-1 | ||
Marunouchi Chiyoda-Ku | ||
Tokyo 100-6317 Japan | 52,087,286.00 | 97.10% |
CLASS Y | ||
Putnam Investments Profit Sharing Plan* | 682,831.00 | 40.27% |
Marsh & McLennan Deferred | ||
Compensation Plans | ||
1166 Avenue Of The Americas | ||
New York, NY 10036-2774 | 602,851.00 | 35.56% |
Spectraserv Inc 401k and | ||
Profit Sharing Plan** | 159,363.00 | 9.40% |
Putnam High Yield Municipal Trust | ||
COMMON SHARES | ||
Cede & Co Fast | ||
20 Bowling Green | ||
New York, NY 10004-1408 | 19,082,078.58 | 90.20% |
Putnam High Yield Trust | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 41,735,991.99 | 19.40% |
CLASS B | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 3,921,329.56 | 11.00% |
CLASS C | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 426,605.74 | 5.30% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 569,240.08 | 7.00% |
CLASS M | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 269,115.22 | 10.90% |
CLASS R | ||
MG Trust Company Cust. FBO | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 24,539.09 | 25.00% |
MG Trust Custodian | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 23,129.08 | 23.50% |
Orchard Trust Co c/o Great West Life | ||
& Annuity | ||
8515 E Orchard Rd # 2T2 | ||
Greenwood Vlg, CO 80111-5002 | 5,765.30 | 5.80% |
CLASS Y | ||
Ohio Tuition Trust Authority/ | ||
College Advantage Program*** | 12,180,258.00 | 44.50% |
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
Putnam Income Fund | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 15,803,891.84 | 13.70% |
CLASS B | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 1,511,310.10 | 7.20% |
CLASS C | ||
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 256,487.72 | 8.10% |
CLASS M | ||
Mizuho Investors Securities | ||
Investment Trust Division | ||
Shibusawa City Place | ||
1-13-16 Kayaba-Cho Nihonbashi | ||
CHUO-KU Tokyo Japan | 43,631,300.00 | 95.90% |
CLASS R | ||
MG Trust Custodian | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 54,922.00 | 43.90% |
MG Trust Company Cust. FBO | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 18,470.58 | 14.70% |
CLASS Y | ||
Ohio Tuition Trust Authority/ | ||
College Advantage Program*** | 9,112,237.00 | 5.10% |
Putnam Income Strategies Fund | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 81,742.80 | 7.30% |
Putnam LLC | ||
One Post Office Square | ||
Boston, MA 02109-2106 | 549,326.00 | 49.40% |
CLASS B | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 8,980.49 | 9.90% |
Pershing LLC | ||
P. O. Box 2052 | ||
Jersey City, NJ 07303 | 23,334.49 | 25.60% |
American Enterprise Investment Svcs | ||
P.O Box 9446 | ||
Minneapolis, MN 55440 | 11,447.61 | 12.50% |
CLASS C | ||
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 35,084.00 | 38.50% |
Pershing LLC | ||
P. O. Box 2052 | ||
Jersey City, NJ 07303 | 9,871.96 | 10.70% |
J-9
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
Putnam Income Strategies Fund, continued | ||
CLASS M | ||
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 1,020.62 | 6.90% |
AG Edwards & Sons Inc | ||
1 N Jefferson Ave | ||
Saint Louis, MO 63103 | 2,977.56 | 20.20% |
Gloria J Callihan | ||
3469 Elmhurst Cir | ||
Uniontown, OH 44685-8143 | 1,983.14 | 13.40% |
Robert F Klingensmith | ||
3370 Bristol Ln | ||
Cuyahoga Fls, OH 44223-3348 | 3,726.71 | 25.30% |
Thomas A Romes & Anne E. Romes | ||
615 Slingerland Dr | ||
Schaumburg, IL 60193-2362 | 3,100.56 | 21.00% |
Walter Callihan | ||
3469 Elmhurst Cir | ||
Uniontown, OH 44685-8143 | 991.57 | 6.70% |
CLASS R | ||
Putnam LLC | ||
One Post Office Square | ||
Boston, MA 02109-2106 | 100.00 | 100.00% |
CLASS Y | ||
Putnam Investments Profit Sharing Plan* | 9,397.00 | 95.81% |
Putnam International Capital Opportunities Fund | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 2,625,157.19 | 8.50% |
Charles Schwab & Co Inc | ||
101 Montgomery St | ||
San Francisco, CA 94022-3120 | 1,786,905.55 | 5.80% |
CLASS B | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 720,441.83 | 5.90% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 681,086.34 | 5.60% |
CLASS C | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 346,447.25 | 13.60% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, Fl 32246-6484 | 295,698.46 | 11.60% |
CLASS R | ||
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 9,323.32 | 12.80% |
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
CLASS R | ||
MG Trust Company As Agent For | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 8,563.97 | 11.70% |
MG Trust Company Cust. FBO | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 4,737.45 | 6.40% |
GPC As Agent For Comms Web Systems | ||
401k Plan | ||
P.O. Box 79377 | ||
Atlanta, GA 30357-7377 | 6,388.96 | 8.80% |
CLASS Y | ||
Ohio Tuition Trust Authority/ | ||
College Advantage Program*** | 787,271.00 | 35.50% |
Putnam Investments Profit Sharing Plan* | 614,703.00 | 27.88% |
Putnam Investments** | 120,581.00 | 5.47% |
Putnam International Equity Fund | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 9,873,131.41 | 7.80% |
CLASS B | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 2,374,202.80 | 6.60% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 2,639,722.68 | 7.30% |
CLASS C | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 985,872.69 | 10.70% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 1,671,268.85 | 18.20% |
CLASS M | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 172,758.96 | 5.70% |
CLASS R | ||
MG Trust Company | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 17,181.88 | 10.80% |
GPC As Agent For Chinburg | ||
Builders Inc 401k Plan | ||
P.O. Box 79377 | ||
Atlanta, GA 30357-7377 | 8,020.00 | 5.00% |
Emjay Corporation Plans Of | ||
RPSA Customers C/O Great-West | ||
8515 E Orchard Rd # 2T2 | ||
Greenwood Vlg, CO 80111-5002 | 25,081.36 | 15.80% |
Hartford Life Insurance | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 31,298.28 | 19.70% |
J-10
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
Putnam International Equity Fund, continued | ||
CLASS Y | ||
Abbott Laboratories Stock | ||
Retirement Programs** | 13.55% | |
Ohio Tuition Trust Authority/ | ||
College Advantage Program*** | 9.40% | |
Marsh & McLennan Supplemental | ||
Retirement Plan** | 5.62% | |
Putnam International Growth and Income Fund | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 15,733,147.52 | 31.30% |
CLASS B | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 670,212.38 | 5.70% |
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 1,649,042.06 | 14.10% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 632,507.82 | 5.40% |
CLASS C | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 284,676.91 | 10.20% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 430,994.81 | 15.50% |
CLASS M | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 282,721.54 | 21.40% |
CLASS R | ||
MG Trust Company Cust. FBO | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 28,312.22 | 33.50% |
MG Trust Custodian | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 13,500.47 | 15.90% |
CLASS Y | ||
Putnam Investments Profit Sharing Plan* | 479,940.00 | 44.67% |
Putnam Investments** | 409,371.00 | 38.10% |
Putnam Investment Grade Municipal Trust | ||
COMMON SHARES | ||
Cede & Co Fast | ||
20 Bowling Green | ||
New York, NY 10004-1408 | 18,578,261.76 | 91.80% |
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
Putnam International New Opportunities Fund | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 3,499,239.87 | 9.50% |
CLASS B | ||
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 427,723.80 | 5.50% |
CLASS C | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 85,460.10 | 8.00% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 90,428.48 | 8.50% |
CLASS M | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 107,988.85 | 9.20% |
CLASS R | ||
MLPF&S For The Sole Benefit Of | ||
its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 1,460.47 | 6.10% |
MG Trust Company Cust | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 7,770.05 | 32.40% |
MG Trust Company | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 2,783.15 | 11.60% |
MG Trust Company Cust. FBO | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 5,890.25 | 24.50% |
MG Trust Custodian | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 1,284.24 | 5.30% |
CLASS Y | ||
Putnam Investments Profit Sharing Plan* | 925,841.00 | 86.50% |
Putnam Investments** | 68,370.00 | 6.39% |
Putnam Investors Fund | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 17,414,401.79 | 10.70% |
CLASS B | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 2,682,090.33 | 5.00% |
CLASS C | ||
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 681,853.00 | 14.10% |
J-11
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
Putnam Investors Fund, continued | ||
CLASS C | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 331,759.87 | 6.80% |
CLASS M | ||
Mercer Trust Company | ||
1 Investors Way | ||
Norwood, MA 02062-1599 | 164,883.21 | 5.40% |
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 191,279.33 | 6.30% |
CLASS R | ||
MG Trust Company Cust | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 7,211.60 | 9.10% |
MG Trust Company Cust. FBO | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 28,598.84 | 36.00% |
MG Trust Custodian | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 13,754.48 | 17.30% |
CLASS Y | ||
Ohio Tuition Trust Authority/ | ||
College Advantage Program*** | 10,085,385.00 | 22.50% |
IBEW Local 3** | 6,767,272.00 | 15.23% |
Putnam Limited Duration Government Income Fund | ||
CLASS A | ||
Boston Safe Deposit & Tr Co TTEE | ||
Marsh & McLennan Employer | ||
1166 Avenue Of The Americas | ||
New York, NY 10036-2708 | 2,774,735.24 | 7.00% |
Marsh & McLennan Co Inc. | ||
1166 Avenue Of The Americas | ||
New York, NY 10036-2708 | 2,560,430.16 | 6.50% |
CLASS B | ||
MLPF&S For The Sole Benefit Of | ||
its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 704,423.70 | 5.70% |
CLASS M | ||
Janney Montgomery Scott LLC | ||
1801 Market Street | ||
Philadelphia, PA 19103 | 67,680.89 | 5.90% |
Concetta Lacorte, Joann Ambrosio & | ||
Ann Marie Derario | ||
9005 165th Ave | ||
Howard Beach, NY 11414-3737 | 71,687.65 | 6.30% |
CLASS R | ||
MG Trust Company Cust. FBO | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 14,062.71 | 36.10% |
MG Trust Custodian | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 19,206.69 | 49.30% |
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
CLASS Y | ||
Electrical Contractors Association And | ||
Local Union 134, IBEW Joint Pension | ||
Trust Of Chicago** | 30,476,187.00 | 95.66% |
Putnam Managed Municipal Income Trust | ||
COMMON SHARES | ||
Cede & Co Fast | ||
20 Bowling Green | ||
New York, NY 10004-1408 | 40,310,303.64 | 90.20% |
Putnam Massachusetts Tax Exempt Income Fund | ||
CLASS A | ||
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 1,403,572.48 | 5.30% |
CLASS B | ||
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 396,892.57 | 8.70% |
CLASS C | ||
Jeanne Craig | ||
28 Tower Hill Rd | ||
Braintree, MA 02184-5315 | 27,844.61 | 6.10% |
Joan A Fitzgerald, Elaine Greene | ||
JTWROS TOD, Walter D Fitzgerald, III | ||
40 Rockingham Ave Apt 214 | ||
West Roxbury, MA 02132-4523 | 30,132.02 | 6.60% |
NFS LLC FEBO, Joe G Naylor, Maile Naylor | ||
1083 Beacon St Apt 4 | ||
Brookline, MA 02446 | 131,022.12 | 28.60% |
Elizabeth F Oshea TOD | ||
Multiple Beneficiaries | ||
P.O. Box 719 | ||
Dennis, MA 02638-0719 | 26,489.03 | 5.80% |
CLASS M | ||
NFS LLC FEBO, Andrea Matoes | ||
238 Plymouth Ave | ||
E Wareham, MA 02538 | 59,043.96 | 11.80% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 29,314.38 | 5.90% |
UBS Financial Services Inc. FBO, | ||
John M. Whittier Jr GST, | ||
Bancroft R Wheeler TTEE | ||
155 Seaport Blvd 7th Floor | ||
Boston, MA 02210-2698 | 72,016.00 | 14.50% |
Leonard Joiner & Leigh A Joiner JTWROS | ||
150 Hampshire Rd | ||
Methuen, MA 01844-1117 | 33,481.00 | 6.70% |
Putnam Master Intermediate Income Trust | ||
COMMON SHARES | ||
Cede & Co Fast | ||
20 Bowling Green | ||
New York, NY 10004-1408 | 87,198,558.59 | 95.40% |
J-12
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
Putnam Michigan Tax Exempt Income Fund | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 2,292,562.25 | 20.60% |
Putnam Michigan Tax Exempt Income Fund, continued | ||
CLASS B | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 113,485.59 | 6.60% |
CLASS C | ||
Raymond James & Assoc Inc | ||
880 Carillon Pkwy | ||
St Petersburg, FL 33716 | 2,639.35 | 70.10% |
Putnam LLC | ||
The Putnam Companies, Inc. | ||
One Post Office Square | ||
Boston, MA 02109-2106 | 1,122.21 | 29.80% |
CLASS M | ||
Frank R Farkas | ||
840 Ducey Ave | ||
Muskegon, MI 49442-2102 | 23,432.95 | 16.60% |
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 9,353.41 | 6.60% |
Pauline B Pickford Trust | ||
64 Pleasant St | ||
Oxford, MI 48371-4648 | 14,317.89 | 10.10% |
UBS Financial Services Inc. FBO, | ||
Robert E. Hunter Trust | ||
5470 Waterfield Ct | ||
Ann Arbor, MI 48108-2749 | 10,032.16 | 7.10% |
AG Edwards & Sons Inc | ||
1 N Jefferson Ave | ||
Saint Louis, MO 63103 | 16,603.41 | 11.80% |
AG Edwards & Sons Inc FBO | ||
its Customers | ||
1 N Jefferson Ave | ||
Saint Louis, MO 63103 | 46,004.92 | 32.60% |
Putnam Mid Cap Value Fund | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 4,563,143.89 | 10.70% |
CLASS B | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 876,811.77 | 5.50% |
CLASS M | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 49,902.02 | 5.20% |
CLASS R | ||
AST Trust Company Cust | ||
Anderson Zurmuehlen & Co 401k | ||
P.O. Box 52129 | ||
Phoenix, AZ 85072-2129 | 25,381.29 | 7.00% |
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
CLASS R | ||
MFS Heritage Trust Co FBO, Certain | ||
Company Benefit Plans | ||
P.O. Box 55824 | ||
Boston, MA 02205-5824 | 18,557.60 | 5.10% |
GPC As Agent For DMG Inc. | ||
401k Plan & Trust | ||
P.O. Box 79377 | ||
Atlanta, GA 30357-7377 | 45,642.71 | 12.70% |
CLASS R | ||
Capital Bank & Trust Co | ||
Hillerich & Bradsby | ||
8515 E Orchard Rd # 2T2 | ||
Greenwood Vlg, CO 80111-5002 | 24,121.68 | 6.70% |
CLASS Y | ||
Marsh & McLennan Supplemental | ||
Retirement Plan** | 2,075,797.00 | 65.23% |
Putnam Investments Profit Sharing Plan* | 638,891.00 | 20.08% |
Marsh & McLennan Deferred | ||
Compensation Plans | ||
1166 Avenue Of The Americas | ||
New York, NY 10036-2774 | 246,603.00 | 7.76% |
Putnam Minnesota Tax Exempt Income Fund | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 2,550,777.62 | 24.70% |
CLASS B | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 130,657.17 | 7.50% |
CLASS C | ||
Putnam LLC | ||
The Putnam Companies, Inc. | ||
One Post Office Square | ||
Boston, MA 02109-2106 | 1,125.02 | 100.00% |
CLASS M | ||
LPL Financial Services | ||
9785 Towne Centre Dr | ||
San Diego, CA 92121 | 9,793.50 | 12.90% |
Stifel Nicolaus & Co Inc, Richard E & | ||
Charlotte A Wuttke | ||
501 North Broadway | ||
St Louis, MO 63102 | 8,402.97 | 11.00% |
Barbara A Aune | ||
2510 Oregon Ave S | ||
St Loius Park, MN 55426-2608 | 4,511.77 | 5.90% |
Barbara J Greenhalgh | ||
2224 E 36th St | ||
Minneapolis, MN 55407-3015 | 3,974.23 | 5.20% |
Gertrude L Palubicki | ||
576 E 2nd St | ||
Winona, MN 55987-4217 | 10,788.38 | 14.20% |
James T Biesanz Jr | ||
270 W Broadway St | ||
Winona, MN 55987-5224 | 4,593.98 | 6.00% |
Mernab & Company | ||
P.O. Box 248 | ||
Winona, MN 55987-0248 | 4,593.51 | 6.00% |
J-13
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
Putnam Minnesota Tax Exempt Income Fund | ||
CLASS M | ||
Scott K Biesanz | ||
724 Washington St | ||
Winona, MN 55987-3350 | 4,593.99 | 6.00% |
Steven T Biesanz | ||
11 Knollwood Ln | ||
Winona, MN 55987-9303 | 4,593.98 | 6.00% |
Putnam Money Market Fund | ||
CLASS M | ||
Mercer Trust Company | ||
1 Investors Way | ||
Norwood, MA 02062-1599 | 5,374,937.35 | 13.50% |
CLASS R | ||
Pershing LLC | ||
P. O. Box 2052 | ||
Jersey City, NJ 07303 | 145,910,080.14 | 96.80% |
CLASS T | ||
Mercer Trust Company | ||
1 Investors Way | ||
Norwood, MA 02062-1599 | 4,165,894.21 | 33.00% |
MG Trust Company | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 2,759,727.09 | 21.90% |
Putnam Municipal Bond Fund | ||
COMMON SHARES | ||
Cede & Co Fast | ||
20 Bowling Green | ||
New York, NY 10004-1408 | 15,797,882.01 | 94.10% |
Putnam Municipal Opportunities Trust | ||
COMMON SHARES | ||
Cede & Co Fast | ||
20 Bowling Green | ||
New York, NY 10004-1408 | 14,524,380.40 | 95.70% |
Putnam New Jersey Tax Exempt Income Fund | ||
CLASS A | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 1,539,482.67 | 8.90% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 1,360,352.20 | 7.90% |
CLASS B | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 382,219.59 | 8.50% |
CLASS C | ||
Putnam LLC | ||
The Putnam Companies, Inc. | ||
One Post Office Square | ||
Boston, Ma 02109-2106 | 1,091.55 | 16.70% |
UBS Financial Services Inc. FBO | ||
its Customers | ||
P.O. Box 3321 | ||
Weehawken, NJ 07086-8154 | 5,434.78 | 83.20% |
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
CLASS M | ||
Shaila Y Karandikar | ||
203 Sherwood Ct | ||
Somerset, NJ 08873-6029 | 21,367.52 | 12.70% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 19,576.32 | 11.60% |
CLASS M | ||
Leonard Cavaliere & | ||
Joseph Cavaliere JTWROS | ||
21 King George Rd | ||
Warren, NJ 07059-7014 | 13,688.77 | 8.10% |
Marie Franklin Marsh Exec | ||
683 Rt 579 | ||
Pittstown, NJ 08867 | 66,842.56 | 39.80% |
Putnam New Opportunities Fund | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 4,292,680.74 | 6.00% |
CLASS C | ||
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 52,182.88 | 6.60% |
CLASS M | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 82,978.87 | 5.30% |
CLASS R | ||
MG Trust Company Cust. FBO | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 8,353.65 | 25.10% |
MG Trust Custodian | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 4,364.54 | 13.20% |
GPC As Agent For Chinburg | ||
Builders Inc 401k Plan | ||
P.O. Box 79377 | ||
Atlanta, GA 30357-7377 | 5,747.85 | 17.40% |
CLASS Y | ||
IBEW Local 3** | 3,896,791.00 | 47.92% |
United Technology Carriers** | 1,438,457.00 | 17.69% |
Marsh & McLennan Supplemental | ||
Retirement Plan** | 574,225.00 | 7.06% |
Putnam Investments Profit Sharing Plan* | 461,519.00 | 5.67% |
Putnam New Value Fund | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 20,686,008.05 | 28.10% |
CLASS B | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 2,610,553.58 | 12.10% |
J-14
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
Putnam New Value Fund, continued | ||
CLASS C | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 336,850.66 | 9.00% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 569,822.38 | 15.30% |
CLASS M | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 128,220.60 | 7.20% |
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 377,251.33 | 21.20% |
CLASS R | ||
MG Trust Company Cust. FBO | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 22,730.23 | 17.10% |
MG Trust Custodian | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 32,097.08 | 24.30% |
Union Bank Of California N.A., | ||
C Ceronix Inc PSP | ||
P.O. Box 85484 | ||
San Diego, CA 92186-5484 | 13,372.75 | 10.10% |
CLASS Y | ||
Ohio Tuition Trust Authority/ | ||
College Advantage Program*** | 5,231,927.00 | 77.40% |
Putnam Investments Profit Sharing Plan* | 825,301.00 | 12.27% |
Putnam New York Investment Grade Municipal Trust | ||
COMMON SHARES | ||
Cede & Co Fast | ||
20 Bowling Green | ||
New York, NY 10004-1408 | 2,606,021.83 | 93.80% |
Putnam New York Tax Exempt Income Fund | ||
CLASS A | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 9,090,340.21 | 7.30% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 11,326,818.45 | 9.00% |
CLASS B | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 471,385.07 | 6.90% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 483,768.19 | 7.10% |
CLASS C | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 120,582.81 | 9.50% |
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
CLASS C | ||
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 257,484.93 | 20.30% |
CLASS M | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 32,386.37 | 12.00% |
CLASS M | ||
NFS LLC FEBO | ||
its Customers | ||
Joan Gramolini | ||
208 West Street | ||
Mamaroneck, NY 10543 | 28,166.17 | 10.40% |
Albert Detiberiis, Louise Detiberiis, | ||
Paul Detiberiis & Louis Detiberiis JTWROS | ||
8905 103rd Ave | ||
Ozone Park, NY 11417-1358 | 29,656.43 | 11.00% |
Pershing LLC | ||
P.O. Box 2052 | ||
Jersey City, NY 07303-9998 | 84,485.70 | 31.30% |
Putnam Ohio Tax Exempt Income Fund | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 3,045,736.47 | 19.10% |
CLASS B | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 124,627.35 | 7.30% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, Fl 32246-6484 | 176,952.21 | 10.40% |
CLASS C | ||
LPL Financial Services | ||
9785 Towne Centre Dr | ||
San Diego, CA 92121 | 929.20 | 21.80% |
Putnam LLC | ||
The Putnam Companies, Inc. | ||
One Post Office Square | ||
Boston, MA 02109-2106 | 1,111.73 | 26.10% |
Dean Witter For The Benefit Of | ||
its Customers | ||
P.O. Box 250 Church Street Station | ||
New York, NY 10008-0250 | 2,209.25 | 51.90% |
CLASS M | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 29,555.79 | 19.30% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 17,687.58 | 11.50% |
UBS Financial Services Inc. FBO | ||
Pine Hills Golf Club Inc | ||
433 West 130th Street | ||
Hinckley, OH 44233-9566 | 56,763.50 | 37.10% |
J-15
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
Putnam OTC & Emerging Growth Fund | ||
CLASS C | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 88,721.40 | 5.90% |
CLASS M | ||
Mercer Trust Company | ||
1 Investors Way | ||
Norwood, MA 02062-1599 | 119,356.83 | 6.80% |
Carwash & Co ADP/State St Collective Trust | ||
200 Newport Avenue Ext | ||
Quincy, MA 02171-2102 | 133,715.89 | 7.80% |
CLASS R | ||
MLPF&S For The Sole Benefit Of | ||
its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 3,573.67 | 19.20% |
MG Trust Custodian | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 10,936.63 | 58.70% |
D Nederveld & J Mckelvey TTEES | ||
5925 Imperial Pkwy Ste 226 | ||
Mulberry, FL 33860-8690 | 1,289.94 | 6.90% |
Trustlynx & Co | ||
P.O. Box 173736 | ||
Denver, CO 80217-3736 | 969.74 | 5.20% |
CLASS Y | ||
Chicago District Council Of Carpenters | ||
Pension Fund Supplemental Annuity Plan* | 2,325,671.00 | 45.36% |
Putnam Investments Profit Sharing Plan* | 1,218,509.00 | 23.77% |
The Idaho Power Company | ||
Employee Savings Plan** | 638,153.00 | 12.45% |
Putnam Pennsylvania Tax Exempt Income Fund | ||
CLASS A | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 815,461.02 | 5.20% |
CLASS C | ||
NFS LLC FEBO David W Stracener, | ||
Tod Myrna F Stracener | ||
1566 Carousel Dr | ||
Warminster, PA 18974 | 11,049.21 | 32.30% |
J.J.B. Hilliard, W.L. Lyons, Inc | ||
George P Fertenbaugh | ||
500 West Jefferson Street | ||
Louisville, KY 40202 | 10,893.24 | 31.90% |
Kim L Szoke | ||
4827 N Cypress Rd | ||
Walnutport, PA 18088-9117 | 5,538.28 | 16.20% |
Randal L Szoke | ||
4827 N Cypress Rd | ||
Walnutport, PA 18088-9117 | 5,538.28 | 16.20% |
CLASS M | ||
Lawrence A Dangelo & | ||
Elizabeth B Dangelo JTWROS | ||
906 General Howe Dr | ||
West Chester, PA 19382-7106 | 28,034.17 | 11.00% |
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
CLASS M | ||
J.J.B. Hilliard, W.L. Lyons, Inc | ||
Jill F Willcox | ||
501 S.4th Street | ||
Louisville, KY 40202 | 16,718.21 | 6.60% |
John J Handley & Joyce A Handley | ||
Ten In Comm | ||
RR 3 Box 294-4 | ||
Dallas, PA 18612-9454 | 102,150.68 | 40.30% |
UBS Financial Services Inc. | ||
FBO Mary N Stewart | ||
Light House Point-Apt 316 | ||
500 Chapel Harbor Drive | ||
Pittsburgh, PA 15238-3144 | 32,422.63 | 12.70% |
Putnam Premier Income Trust | ||
COMMON SHARES | ||
Cede & Co Fast | ||
20 Bowling Green | ||
New York, NY 10004-1408 | 167,609,373.23 | 93.70% |
Putnam Prime Money Market Fund | ||
CLASS A | ||
The Putnam Companies, Inc. | ||
One Post Office Square | ||
Boston, MA 02108-2106 | 1,091.28 | 100.00% |
CLASS I | ||
Band & Co C/O US Bank | ||
P.O. Box 1787 | ||
Milwaukee, WI 53201-1787 | 140,843,767.48 | 5.60% |
Bear Stearns Securities Corp | ||
1 Metrotech Ctr | ||
Brooklyn, NY 11201-3831 | 276,317,506.89 | 11.10% |
Goldman Sachs Global Cash Svcs | ||
71 S Wacker Dr Ste 500 | ||
Chicago, IL 60606-4673 | 508,853,807.57 | 20.50% |
Hare & Co | ||
C/O Bank Of New York | ||
1 Wall St Fl 3 | ||
New York, NY 10005 | 448,653,089.53 | 18.10% |
Mellon Bank | ||
One Freedom Valley Drive | ||
Oaks, PA 19456 | 644,200,818.59 | 26.00% |
CLASS P | ||
The George Putnam Fund of Boston | ||
1 Investors Way | ||
Norwood, MA 02062-1599 | 213,232,130.00 | 9.00% |
Putnam Income Fund | ||
1 Investors Way | ||
Norwood, MA 02062-1599 | 210,012,399.00 | 8.90% |
Putnam Premier Income Trust | ||
1 Investors Way | ||
Norwood, MA 02062-1599 | 180,912,188.00 | 7.70% |
Putnam Master Intermediate | ||
Income Trust | ||
1 Investors Way | ||
Norwood, MA 02062-1599 | 134,746,325.00 | 5.70% |
Putnam Asset Allocation: | ||
Growth Portfolio | ||
1 Investors Way | ||
Norwood, MA 02062-1599 | 122,418,253.00 | 5.20% |
J-16
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
Putnam Prime Money Market Fund, continued | ||
CLASS P | ||
Putnam Asset Allocation: | ||
Balanced Portfolio | ||
1 Investors Way | ||
Norwood, MA 02062-1599 | 296,067,637.00 | 12.60% |
Putnam Asset Allocation: | ||
Conservative Portfolio | ||
1 Investors Way | ||
Norwood, MA 02062-1599 | 117,488,972.00 | 5.00% |
PYXIS ABS | ||
c/o Maples Finance Limited | ||
P.O. Box 1039GT | ||
Queensgate House, South Church St. | ||
George Town, Grand Cayman | ||
Cayman Islands | 130,000,000.00 | 5.50% |
CLASS R | ||
Putnam LLC | ||
One Post Office Square | ||
Boston, MA 02109-2106 | 1,084.00 | 100.00% |
CLASS S | ||
Putnam LLC | ||
One Post Office Square | ||
Boston , MA 02109-2106 | 1,095.00 | 100.00% |
Putnam Research Fund | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 3,421,284.12 | 11.60% |
CLASS B | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 686,594.71 | 5.30% |
CLASS C | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 97,808.65 | 5.10% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 112,741.37 | 5.90% |
CLASS M | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 66,473.96 | 8.30% |
CLASS R | ||
Transamerica Life Insurance Company | ||
1150 S Olive St | ||
Los Angeles, CA 90015-2209 | 11,311.54 | 78.40% |
CLASS Y | ||
Marsh & McLennan Supplemental | ||
Retirement Plan** | 2,394,507.00 | 51.61% |
Ardent Health Services** | 1,313,185.00 | 28.30% |
Putnam Investments Profit Sharing Plan* | 415,217.00 | 8.95% |
Lovelace Pension Plan** | 283,713.00 | 6.11% |
Putnam RetirementReady 2010 Fund | ||
CLASS A | ||
The TXI Inc. Retirement Plan** | 133,899.00 | 17.38% |
Radio Shack 401(K) Plan** | 111,288.00 | 14.45% |
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
CLASS B | ||
First Baptist Church Of West | ||
13350 Maxella Ave Unit 3 | ||
Marina Dl Rey, CA 90292 | 608.17 | 13.10% |
USD LLC | ||
1415 Franklin Ave | ||
River Forest, IL 60305 | 342.16 | 7.40% |
Unified School District 409 | ||
17727 286th Rd | ||
Atchison, KS 66002 | 1,206.78 | 26.10% |
Cheryl S. Smith | ||
435 E Shoreline Dr | ||
North Augusta, SC 29841 | 245.67 | 5.30% |
Hua Hsing Wei | ||
9146 Emperor Ave | ||
San Gabriel, CA 91775 | 281.20 | 6.10% |
LPL Financial Services | ||
9785 Towne Centre Dr | ||
San Diego, CA 92121 | 465.12 | 10.00% |
CLASS C | ||
Mark J Ruthenberg | ||
1001 N Stockton Hill Rd Apt B | ||
Kingman, AZ 86401 | 124.17 | 11.20% |
Shin Nan Ho | ||
14321 Don Julian Rd | ||
City Industry, CA 91746 | 123.48 | 11.20% |
Nancy A. Smith | ||
49 E 27th Cir | ||
Fayetteville, AR 72701 | 65.41 | 5.90% |
City Of Taunton | ||
75 Bayview Ave | ||
Berkley, MA 02779 | 389.62 | 35.30% |
Peggy J. Ward | ||
8609 Jenner Ln S | ||
Cottage Grove, MN 55016 | 75.13 | 6.80% |
Midland Schools | ||
913 Country Club Dr | ||
Maquoketa, IA 52060 | 59.84 | 5.40% |
CLASS M | ||
California State University | ||
1205 Riverside Dr | ||
Fullerton, CA 92831 | 130.56 | 5.30% |
Dora G. Cota | ||
2109 Hillcrest St | ||
Carlsbad, NM 88220 | 177.50 | 7.30% |
Midland Schools | ||
913 Country Club Dr | ||
Maquoketa, IA 52060 | 738.41 | 30.50% |
Sarah A. Dobroth | ||
P.O. Box 368 | ||
Grover Beach, CA 93483 | 187.25 | 7.70% |
CLASS R | ||
MG Trust Company Cust | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 930.79 | 24.10% |
MG Trust Company Trustee | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 1,211.73 | 31.40% |
Wachovia Bank Various Retirement Plans | ||
1525 West Wt Harris Blvd | ||
Charlotte, NC 28288-1151 | 359.25 | 9.30% |
J-17
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
Putnam RetirementReady 2010 Fund, continued | ||
CLASS A | ||
Union Bank Tr Nominee FBO | ||
its Customers | ||
P.O. Box 85484 | ||
San Diego, CA 92186-5484 | 1,282.29 | 33.30% |
CLASS Y | ||
Quebecor World (USA) Inc. 401(K) Plan** | 114,297.00 | 22.30% |
First Hawaiian Future Plan** | 104,803.00 | 20.45% |
Ardent Health Services** | 55,186.00 | 10.77% |
Genlyte Thomas Group Retirement | ||
Savings And Investment Plan** | 44,503.00 | 8.68% |
Briggs & Stratton Corporation Employee | ||
Savings And Investment Plan** | 40,291.00 | 7.86% |
National Waterworks, Inc. | ||
Retirement Savings Plan** | 30,781.00 | 6.01% |
The Canadaigua Brands, Inc. 401(K) | ||
And Profit Sharing Plan** | 28,787.00 | 5.62% |
Church & Dwight Co., Inc.** | 33,110.00 | 6.46% |
Putnam RetirementReady 2015 Fund | ||
CLASS A | ||
Asbestos Workers Local No. 6* | 247,961.00 | 18.01% |
Radio Shack 401(K) Plan** | 195,899.00 | 14.23% |
The TXI Inc. Retirement Plan** | 106,907.00 | 7.76% |
CLASS B | ||
Dean C. Holmquist | ||
1255 Brighton Sq | ||
Saint Paul, MN 55112 | 608.81 | 5.50% |
HSBC Securities (USA) Inc. | ||
452 Fifth Avenue | ||
New York, NY 10018 | 890.86 | 8.10% |
NFS LLC FEBO | ||
its Customers | ||
77 Rocky Rd E | ||
Harwinton, CT 06791 | 763.62 | 7.00% |
Pershing LLC | ||
P.O. Box 2052 | ||
Jersey City, NJ 07303-9998 | 2,545.03 | 23.30% |
CLASS C | ||
Kathy W. Rodgers | ||
127 Township Road 1266 | ||
Proctorville, OH 45669 | 1,119.34 | 31.40% |
James Schall | ||
9396 Jonathan Rd | ||
Woodbury, MN 55125 | 235.27 | 6.60% |
Judy A. Schall | ||
9396 Jonathan Rd | ||
Woodbury, MN 55125 | 235.27 | 6.60% |
Ann Dobroth | ||
P.O. Box 368 | ||
Grover Beach, CA 93483 | 1,122.56 | 31.50% |
CLASS M | ||
Mercer Trust Company | ||
1 Investors Way | ||
Norwood, MA 02062-1599 | 176.68 | 7.20% |
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
CLASS M | ||
Jackie L. Hallack | ||
10120 Arrowhead Dr Apt 7 | ||
Jacksonville, FL 32257 | 219.46 | 9.00% |
Doris M. Foster | ||
1827 Miami Ave | ||
Kingman, AZ 86401 | 791.00 | 32.60% |
Terry A. Stewart | ||
215 Ridge Rock Rd | ||
Sedona, AZ 86351 | 353.45 | 14.50% |
Sarah A. Dobroth | ||
P.O. Box 368 | ||
Grover Beach, CA 93483 | 166.98 | 6.80% |
CLASS R | ||
MG Trust Company Cust. FBO | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 231.53 | 77.20% |
Wachovia Bank Various Retirement Plans | ||
1525 West Wt Harris Blvd | ||
Charlotte, NC 28288-1151 | 22.33 | 7.40% |
CLASS Y | ||
First Hawaiian Future Plan** | 163,575.00 | 19.95% |
Quebecor World (USA) Inc. 401(K) Plan** | 150,493.00 | 18.35% |
Church & Dwight Co., Inc.** | 104,823.00 | 12.78% |
The Canadaigua Brands, Inc. 401(K) | ||
And Profit Sharing Plan** | 96,333.00 | 11.75% |
Ardent Health Services** | 92,087.00 | 11.23% |
Briggs & Stratton Corporation Employee | ||
Savings And Investment Plan** | 53,135.00 | 6.47% |
Putnam RetirementReady 2020 Fund | ||
CLASS A | ||
Radio Shack 401(K) Plan** | 233,578.00 | 16.12% |
The TXI Inc. Retirement Plan** | 103,808.00 | 7.17% |
CLASS B | ||
Patricia A. Eaton | ||
14 Woods Ln | ||
Lancaster, MA 01523 | 869.70 | 8.10% |
NFS LLC FEBO | ||
its Customers | ||
5769 Pray St | ||
Bonita, CA 91902 | 586.82 | 5.50% |
Paul H. Batchelder Ira | ||
P.O. Box 438 | ||
Drexel, MO 64742 | 555.90 | 5.20% |
CLASS C | ||
George A. Ozuna | ||
405 Happy Trl | ||
Shavano Park, TX 78231 | 582.33 | 27.10% |
Nancy A. Smith | ||
49 E 27th Cir | ||
Fayetville, AR 72701 | 141.21 | 6.50% |
Mark E. Hall | ||
5121 N Bank Rd | ||
Crescent City, CA 95531 | 331.25 | 15.40% |
Victoria A. Skajewski | ||
6176 Gettysburg Ave N | ||
New Hope, MN 55428 | 123.69 | 5.70% |
J-18
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
Putnam RetirementReady 2020 Fund, continued | ||
CLASS C | ||
Kristine Dierks | ||
697 Blue Jay Ln | ||
Hudson, WI 54016 | 156.90 | 7.30% |
Todd Dierks | ||
697 Blue Jay Ln | ||
Hudson, WI 54016 | 156.90 | 7.30% |
CLASS M | ||
John J. McClary | ||
205 E 26th St | ||
Yuma, AZ 85364 | 509.35 | 5.90% |
Margaret C. Smith | ||
4425 Saddleback St | ||
Cocoa, FL 32927 | 620.04 | 7.20% |
Barstow Unified School District | ||
481 McBroom Ave | ||
Barstow, CA 92311 | 569.17 | 6.60% |
Beverly R Mracek | ||
6505 E Crumb Rd | ||
Kingman, AZ 86401-6565 | 1,110.77 | 13.00% |
Sarah A Dobroth | ||
P.O. Box 368 | ||
Grover Beach, CA 93483 | 555.06 | 6.50% |
CLASS R | ||
MG Trust Company Cust. FBO | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 761.14 | 34.40% |
Wachovia Bank | ||
Various Retirement Plans | ||
1525 West Wt Harris Blvd | ||
Charlotte, NC 28288-1151 | 1,298.78 | 59.30% |
CLASS Y | ||
Quebecor World (USA) Inc. 401(K) Plan** | 199,833.00 | 24.47% |
First Hawaiian Future Plan** | 127,167.00 | 15.57% |
Ardent Health Services** | 107,728.00 | 13.19% |
The Canadaigua Brands, Inc. 401(K) | ||
And Profit Sharing Plan** | 80,310.00 | 9.83% |
Church & Dwight Co., Inc.** | 84,010.00 | 10.29% |
Briggs & Stratton Corporation Employee | ||
Savings And Investment Plan** | 77,745.00 | 9.52% |
Putnam RetirementReady 2025 Fund | ||
CLASS A | ||
Radio Shack 401(K) Plan** | 208,704.00 | 20.84% |
DS Waters Of America LP** | 83,399.00 | 8.33% |
The TXI Inc. Retirement Plan** | 75,616.00 | 7.55% |
CLASS B | ||
Daniel L Kiskis | ||
4968 S Ridgeside Cir | ||
Ann Arbor, MI 48105-9447 | 1,156.91 | 8.70% |
LPL Financial Services | ||
9785 Towne Centre Drive | ||
San Diego, CA 92121-1968 | 1,031.58 | 7.70% |
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
CLASS B | ||
Memorial Medical Center (IL) | ||
2500 E Lake Shore Dr | ||
Springfield, IL 62712-5500 | 1,094.45 | 8.20% |
NFS LLC FEBO | ||
its Customers | ||
2653 Sawmill Rd | ||
Hickory Grove, SC 29717 | 1,570.12 | 11.70% |
James E Rembert | ||
P.O. Box 101 | ||
Greenwood, IL 60425 | 698.24 | 5.20% |
CLASS C | ||
Debra F Parsons | ||
19 Webster Ave | ||
Wheeling, WV 26003 | 171.05 | 8.80% |
George A Ozuna | ||
405 Happy Trl | ||
Shavano Park, TX 78231 | 543.46 | 28.00% |
Muriel B Quesenberry | ||
5105 E Camelback Loop | ||
Kingman, AZ 86409 | 226.62 | 11.60% |
Otto Eachus | ||
805 Mason Dr | ||
Roswell, NM 88201 | 331.43 | 17.00% |
CLASS M | ||
Barbara M Toth | ||
2151 Chinook Dr | ||
Kingman, AZ 86401 | 227.11 | 5.40% |
Joan S Walker | ||
2490 Avalon Ln | ||
Lk Havasu City, AZ 86404 | 226.03 | 5.40% |
Susan M Stalhut | ||
3089 W Carmichael Rd | ||
Kingman, AZ 86413 | 389.39 | 9.40% |
Corinne C Kovacsics | ||
3620 S Pima Dr | ||
Flagstaff, AZ 86001 | 338.01 | 8.10% |
Robyn S Allen | ||
3815 N Melody St | ||
Kingman, AZ 86409 | 229.23 | 5.50% |
Sarah A Dobroth | ||
P.O. Box 368 | ||
Grover Beach, CA 93483 | 388.44 | 9.40% |
CLASS R | ||
MG Trust Company Cust. FBO | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 1,832.06 | 88.90% |
CLASS Y | ||
Quebecor World (USA) Inc. 401(K) Plan** | 170,363.00 | 22.83% |
Ardent Health Services** | 107,363.00 | 14.39% |
First Hawaiian Future Plan** | 100,349.00 | 13.45% |
The Canadaigua Brands, Inc. 401(K) | ||
And Profit Sharing Plan** | 78,835.00 | 10.57% |
Church & Dwight Co., Inc.** | 60,280.00 | 8.08% |
Kohl’s Department Stores, Inc.** | 43,362.00 | 5.81% |
Briggs & Stratton Corporation Employee | ||
Savings And Investment Plan** | 47,435.00 | 6.36% |
J-19
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
Putnam RetirementReady 2030 Fund | ||
CLASS A | ||
Radio Shack 401(K) Plan** | 125,612.00 | 15.49% |
DS Waters Of America LP** | 68,040.00 | 8.39% |
DR Horton, Inc. Profit Sharing Plan** | 53,930.00 | 6.65% |
CLASS B | ||
Hamilton Southeastern Schools | ||
1371 Bentley Way | ||
Carmel, IN 46032 | 745.73 | 9.30% |
John B Adams | ||
40 Northeast St | ||
New Columbia, PA 17856 | 495.38 | 6.10% |
Elliot Popper | ||
4275 Congressional Dr | ||
Myrtle Beach, SC 29579 | 601.67 | 7.50% |
Matthew Finn | ||
4647 Hannover Ave | ||
Saint Louis, MO 63123 | 410.19 | 5.10% |
Cuzin G Inc | ||
584 Fieldstone Ln | ||
Ballwin, MO 63011 | 661.07 | 8.20% |
John F Keating | ||
7330 Darien Ln | ||
Darien, IL 60561 | 777.05 | 9.70% |
CLASS C | ||
Karla J Stein | ||
1026 Atkins St | ||
Porterville, CA 93257 | 123.79 | 21.50% |
Amy Disbury | ||
108 Miller Dr | ||
East Syracuse, NY 13057 | 142.60 | 24.80% |
Randall L Case | ||
11194 Thornberry Dr | ||
Freeland, MI 48623 | 43.81 | 7.60% |
Noah R Ring | ||
27 Kirkwood Dr | ||
Newton, PA 18940 | 74.61 | 13.00% |
Michelle L Kvernmo | ||
503 Grindstone Ln | ||
Dundas, MN 55019 | 64.42 | 11.20% |
Steve Kvernmo | ||
503 Grindstone Ln | ||
Dundas, MN 55019 | 75.56 | 13.10% |
CLASS M | ||
Mercer Trust Company | ||
1 Investors Way | ||
Norwood, MA 02062-1599 | 9,259.38 | 89.20% |
CLASS R | ||
MG Trust Company Cust. FBO | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 696.77 | 36.20% |
Wachovia Bank Various Retirement Plans | ||
1525 West Wt Harris Blvd | ||
Charlotte, NC 28288-1151 | 942.41 | 49.30% |
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
CLASS Y | ||
Quebecor World (USA) Inc. 401(K) Plan** | 108,781.00 | 21.36% |
First Hawaiian Future Plan** | 91,181.00 | 17.91% |
Ardent Health Services** | 54,862.00 | 10.77% |
The Canadaigua Brands, Inc. 401(K) | ||
And Profit Sharing Plan** | 44,176.00 | 8.67% |
Church & Dwight Co., Inc.** | 43,473.00 | 8.54% |
Kohl’s Department Stores, Inc.** | 38,383.00 | 7.54% |
National Waterworks, Inc. | ||
Retirement Savings Plan** | 25,958.00 | 5.10% |
Briggs & Stratton Corporation Employee | ||
Savings And Investment Plan** | 33,259.00 | 6.41% |
Putnam RetirementReady 2035 Fund | ||
CLASS A | ||
Radio Shack 401(K) Plan** | 80,724.00 | 14.24% |
DR Horton, Inc. Profit Sharing Plan** | 60,399.00 | 10.65% |
DS Waters Of America LP** | 58,875.00 | 10.38% |
ASML US Employees Savings** | 33,638.00 | 5.94% |
CLASS B | ||
USD LLC | ||
1415 Franklin Ave | ||
River Forest, IL 60305 | 796.34 | 13.50% |
Primevest Financial Services (FB) | ||
400 First Street So Suite 300 | ||
St Cloud, MN 56302 | 314.95 | 5.30% |
HSBC Securities (USA) Inc. | ||
452 Fifth Avenue | ||
New York, NY 10018 | 751.00 | 12.70% |
Michelle M Presby | ||
77 Arnold Rd | ||
South China, ME 04358 | 359.82 | 6.10% |
Pershing LLC | ||
P. O. Box 2052 | ||
Jersey City, NJ 07303 | 301.13 | 5.10% |
CLASS C | ||
Laura L Weber | ||
118 Atglen St | ||
Lyndora, PA 16045 | 322.56 | 43.30% |
Brian J McVay | ||
2748 Bradfordt Dr # 316 | ||
W Melbourne, FL 32904 | 63.28 | 8.50% |
Joy P Olson-McVay | ||
2748 Bradfordt Dr # 316 | ||
W Melbourne, FL 32904 | 63.28 | 8.50% |
San Diego Unified School Dist | ||
7445 Charmant Dr Unit 1714 | ||
San Diego, CA 92122 | 207.29 | 27.90% |
Karen Nixon | ||
993 Mount View Rd | ||
Wheeling, WV 26003 | 64.85 | 8.70% |
CLASS M | ||
Mercer Trust Company | ||
1 Investors Way | ||
Norwood, MA 02062-1599 | 52.20 | 6.90% |
J-20
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
Putnam RetirementReady 2035 Fund, continued | ||
CLASS M | ||
Mark J Ruthenberg | ||
1001 N Stockton Hill Rd Apt B | ||
Kingman, AZ 86401 | 81.66 | 10.80% |
Daryl M Eason | ||
12415 Pathos Ln | ||
San Diego, CA 92129 | 307.77 | 40.60% |
Otto G Eachus | ||
805 Mason Dr | ||
Roswell, NM 88201 | 77.35 | 10.20% |
Sarah A Dobroth | ||
P.O. Box 368 | ||
Grover Beach, CA 93483 | 124.99 | 16.50% |
CLASS R | ||
MG Trust Company Cust. FBO | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 1,133.16 | 59.70% |
Wachovia Bank Various Retirement Plans | ||
1525 West Wt Harris Blvd | ||
Charlotte, NC 28288-1151 | 509.23 | 26.90% |
CLASS Y | ||
The Canadaigua Brands, Inc. 401(K) | ||
And Profit Sharing Plan** | 61,117.00 | 18.04% |
Quebecor World (USA) Inc. 401(K) Plan** | 57,305.00 | 16.92% |
Ardent Health Services** | 43,585.00 | 12.87% |
Kohl’s Department Stores, Inc.** | 38,206.00 | 11.28% |
First Hawaiian Future Plan** | 33,960.00 | 10.03% |
Church & Dwight Co., Inc.** | 29,147.00 | 8.61% |
Briggs & Stratton Corporation Employee | ||
Savings And Investment Plan** | 19,190.00 | 5.67% |
Putnam RetirementReady 2040 Fund | ||
CLASS A | ||
Radio Shack 401(K) Plan** | 51,303.00 | 13.10% |
DR Horton, Inc. Profit Sharing Plan** | 49,462.00 | 12.63% |
DS Waters Of America LP** | 46,559.00 | 11.89% |
CLASS B | ||
Jacob Hoida | ||
1006 Hillside Cir | ||
Verona, WI 53593 | 203.23 | 6.90% |
Lauren M Hall | ||
11941 Havermale Rd | ||
New Lebanon, OH 45345 | 246.52 | 8.40% |
Ryan Hall | ||
11941 Havermale Rd | ||
New Lebanon, OH 45345 | 251.21 | 8.60% |
Heather M Prondzinski | ||
19685 Near Mountain Blvd | ||
Excelsior, MN 55331 | 147.94 | 5.00% |
Joel J Klein | ||
22102 Stonehedge St | ||
Boyds, MD 20841 | 209.92 | 7.20% |
Mark J Funk | ||
36022 Rimcrest Rd | ||
Freeport, MN 56331 | 352.29 | 12.00% |
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
CLASS B | ||
David J Walters | ||
583 Halverson Ct | ||
Jacksonville, FL 32225 | 332.50 | 11.40% |
Deborah L Gruneberg | ||
825 Foxland Dr | ||
Pittsburgh, PA 15243 | 188.78 | 6.40% |
Pershing LLC | ||
P. O. Box 2052 | ||
Jersey City, NJ 07303 | 227.17 | 7.70% |
CLASS C | ||
John P Dold | ||
14536 55th St NE | ||
Saint Michael, MN 55376 | 8.21 | 17.50% |
Victoria D Dold | ||
14536 55th St NE | ||
Saint Michael, MN 55376 | 8.21 | 17.50% |
Heather M Preston | ||
17486 308th St | ||
Shafer, MN 55074 | 4.23 | 9.00% |
John R Preston | ||
17486 308th St | ||
Shafer, MN 55074 | 4.23 | 9.00% |
Putnam LLC | ||
The Putnam Companies, Inc. | ||
One Post Office Square | ||
Boston, MA 02109-2106 | 18.08 | 38.60% |
CLASS M | ||
Mercer Trust Company | ||
1 Investors Way | ||
Norwood, MA 02062-1599 | 362.42 | 65.20% |
Mark J Ruthenberg | ||
1001 N Stockton Hill Rd Apt B | ||
Kingman, AZ 86401 | 106.14 | 19.00% |
Tatyana T Ruthenberg | ||
1001 N Stockton Hill Rd Apt B | ||
Kingman, AZ 86401 | 33.24 | 5.90% |
California State Univ Fullerton | ||
1548 E Brookdale Pl | ||
Fullerton, CA 92831 | 34.48 | 6.20% |
CLASS R | ||
MG Trust Company Cust. FBO | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 832.42 | 69.70% |
Wachovia Bank Various Retirement Plans | ||
1525 West Wt Harris Blvd | ||
Charlotte, NC 28288-1151 | 204.61 | 17.10% |
CLASS Y | ||
The Canadaigua Brands, Inc. 401(K) | ||
And Profit Sharing Plan** | 27,941.00 | 15.63% |
Quebecor World (USA) Inc. 401(K) Plan** | 27,926.00 | 15.62% |
First Hawaiian Future Plan** | 24,743.00 | 13.84% |
Church & Dwight Co., Inc.** | 21,180.00 | 11.85% |
Kohl’s Department Stores, Inc.** | 18,665.00 | 10.44% |
Ardent Health Services** | 13,323.00 | 7.45% |
Putnam Investments Profit Sharing Plan* | 11,933.00 | 6.68% |
Briggs & Stratton Corporation Employee | ||
Savings And Investment Plan** | 12,972.00 | 7.26% |
J-21
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
Putnam RetirementReady 2045 Fund | ||
CLASS A | ||
Radio Shack 401(K) Plan** | 46,758.00 | 16.26% |
DR Horton, Inc. Profit Sharing Plan** | 32,299.00 | 11.23% |
DS Waters Of America LP** | 25,895.00 | 9.00% |
ASML US Employees Savings** | 16,850.00 | 5.86% |
CLASS A | ||
Angela L Bragg | ||
18811 Arrowhead Ave | ||
Cleveland, OH 44119 | 158.74 | 9.60% |
Suzann K Benge | ||
21417 Naples St NW | ||
Elk River, MN 55330 | 111.22 | 6.70% |
Jason J Pidgeon | ||
35 Bilodeau Pkwy | ||
Burlington, VT 05401 | 109.71 | 6.60% |
J.J.B. Hilliard, W.L. Lyons, Inc | ||
501 S.4th Street | ||
Louisville, KY 40202 | 181.26 | 11.00% |
NFS LLC FEBO | ||
its Customers | ||
5769 Pray St | ||
Bonita, CA 91902 | 236.30 | 14.40% |
Carmen R Grair | ||
7905 Via Stefano | ||
Burbank, CA 91504 | 238.09 | 14.50% |
George Grair | ||
7905 Via Stefano | ||
Burbank, CA 91504 | 234.59 | 14.30% |
CLASS C | ||
Julie F Wilson | ||
1014 W Orangewood Ave | ||
Phoenix, AZ 85021 | 30.18 | 19.10% |
Lyrics HQ | ||
611 S Port St | ||
Baltimore, MD 21224 | 106.09 | 67.40% |
Precision Inc | ||
7118 E 30th St | ||
Tucson, AZ 85710 | 11.54 | 7.30% |
CLASS M | ||
Mercer Trust Company | ||
1 Investors Way | ||
Norwood, MA 02062-1599 | 84.77 | 98.30% |
CLASS R | ||
MG Trust Company Cust. FBO | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 356.87 | 35.20% |
Wachovia Bank Various Retirement Plans | ||
1525 West Wt Harris Blvd | ||
Charlotte, NC 28288-1151 | 562.11 | 55.50% |
CLASS Y | ||
First Hawaiian Future Plan** | 52,299.00 | 32.79% |
Quebecor World (USA) Inc. 401(K) Plan** | 22,785.00 | 14.28% |
Kohl’s Department Stores, Inc.** | 17,143.00 | 10.75% |
The Canadaigua Brands, Inc. 401(K) | ||
And Profit Sharing Plan** | 17,071.00 | 10.70% |
Ardent Health Services** | 10,221.00 | 6.41% |
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
CLASS Y | ||
Church & Dwight Co., Inc.** | 10,194.00 | 6.39% |
Briggs & Stratton Corporation Employee | ||
Savings And Investment Plan** | 9,566.00 | 6.00% |
Putnam RetirementReady 2050 Fund | ||
CLASS A | ||
Radio Shack 401(K) Plan** | 12,465.00 | 10.70% |
DR Horton, Inc. Profit Sharing Plan** | 9,448.00 | 8.11% |
Western States Asbestos Workers’ | ||
Individual Account Plan* | 7,435.00 | 6.38% |
ASML US Employees Savings** | 7,399.00 | 6.35% |
IBEW Local 150 Supplemental Pension Fund** | 7,283.00 | 6.25% |
IBEW Local 38 401k Retirement Plan** | 6,209.00 | 5.33% |
CLASS B | ||
Arlington Storage Corp | ||
15 Bennett St | ||
Canisteo, NY 14823 | 282.67 | 14.30% |
Derek C Kulwicki | ||
1709 Mead Ln | ||
Moore, OK 73170 | 121.05 | 6.10% |
Jia Tzong Kou | ||
19158 Shakespeare Dr | ||
Walnut, CA 91789 | 221.12 | 11.20% |
Hsuen-Ting Ho | ||
2944 Castle Rock Rd | ||
Diamond Bar, CA 91765 | 240.12 | 12.20% |
Stephen J Hoffman | ||
3450 N Lake Shore Dr Apt 2910 | ||
Chicago, IL 60657 | 139.20 | 7.00% |
NFS LLC FEBO | ||
its Customers | ||
5769 Pray St | ||
Bonita, CA 91902 | 189.35 | 9.60% |
Brett A Beal | ||
6800 W Fortuna St | ||
Wichita, KS 67215 | 183.62 | 9.30% |
CLASS C | ||
Putnam LLC | ||
The Putnam Companies, Inc. | ||
One Post Office Square | ||
Boston, MA 02109-2106 | 20.99 | 100.00% |
CLASS M | ||
Mercer Trust Company | ||
1 Investors Way | ||
Norwood, MA 02062-1599 | 15.89 | 42.90% |
Putnam LLC | ||
The Putnam Companies, Inc. | ||
One Post Office Square | ||
Boston, MA 02109-2106 | 21.10 | 57.00% |
CLASS R | ||
MG Trust Company Cust. FBO | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 286.11 | 71.70% |
MG Trust Company Trustee | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 58.52 | 14.60% |
J-22
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
Putnam RetirementReady 2050 Fund | ||
CLASS R | ||
Putnam LLC | ||
The Putnam Companies, Inc. | ||
One Post Office Square | ||
Boston, MA 02109-2106 | 21.22 | 5.30% |
CLASS Y | ||
Quebecor World (USA) Inc. 401(K) Plan** | 8,335.00 | 21.76% |
Kohl’s Department Stores, Inc.** | 7,324.00 | 19.11% |
Briggs & Stratton Corporation Employee | ||
Savings And Investment Plan** | 4,372.00 | 11.31% |
Church & Dwight Co., Inc.** | 4,023.00 | 10.50% |
The Canadaigua Brands, Inc. 401(K) | ||
And Profit Sharing Plan** | 3,528.00 | 9.21% |
Genlyte Thomas Group Retirement | ||
Savings & Investment Plan** | 2,466.00 | 6.44% |
Mechanical Union Savings Trust 401(K) Plan** | 2,031.00 | 5.30% |
Putnam RetirementReady Maturity Fund | ||
CLASS A | ||
IBEW Local 150 Supplemental Pension Plan** | 115,715.00 | 20.90% |
The TXI Inc. Retirement Plan** | 82,847.00 | 14.97% |
Radio Shack 401(K) Plan** | 44,196.00 | 7.98% |
Roofers Local Union 33 Thrift Fund** | 28,424.00 | 5.13% |
CLASS B | ||
Donna E Mansell | ||
4907 Cassia St | ||
Boise, ID 83705-1907 | 200.63 | 7.30% |
Mabel R Adams | ||
2012 N 24th St | ||
Boise, ID 83702-0205 | 330.09 | 12.10% |
Putnam LLC | ||
One Post Office Square | ||
Boston, MA 02109-2106 | 1,831.00 | 67.10% |
CLASS C | ||
Donna J Fritz | ||
336 Brook Dr | ||
Romeo, MI 48065 | 454.91 | 95.90% |
CLASS M | ||
Mercer Trust Company | ||
1 Investors Way | ||
Norwood, MA 02062-1599 | 1,371.66 | 84.80% |
James T Brewer Jr | ||
RR 1 Box 275 | ||
Williamstown, WV 26187 | 226.22 | 13.90% |
CLASS R | ||
MG Trust Company Cust. FBO | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 1,139.17 | 92.30% |
CLASS Y | ||
Quebecor World (USA) Inc. 401(K) Plan** | 40,631.00 | 23.97% |
Ardent Health Services** | 29,098.00 | 17.17% |
First Hawaiian Future Plan** | 27,732.00 | 16.36% |
Kohl’s Department Stores, Inc.** | 12,236.00 | 7.22% |
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
CLASS Y | ||
National Waterworks, Inc. | ||
Retirement Savings Plan** | 11,810.00 | 6.97% |
The Canadaigua Brands, Inc. 401(K) | ||
And Profit Sharing Plan** | 10,809.00 | 6.38% |
Church & Dwight Co., Inc.** | 9,170.00 | 5.41% |
Briggs & Stratton Corporation Employee | ||
Savings And Investment Plan** | 8,625.00 | 5.09% |
Putnam Small Cap Growth Fund | ||
CLASS A | ||
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 907,310.35 | 5.50% |
CLASS C | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 53,444.05 | 5.50% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 195,992.98 | 20.40% |
CLASS M | ||
Counsel Trust Co Beneco, Inc Polaris | ||
Plus Master#2 DBA Mid Atlantic Trust | ||
The Times Building | ||
336 4th Ave St 5 | ||
PIttsburgh, PA 15222-2004 | 50,783.63 | 20.60% |
CLASS R | ||
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 36,077.96 | 7.70% |
NFS LLC FEBO | ||
its Customers | ||
P.O. Box 1467 | ||
Muncie, IN 47308-1467 | 197,084.00 | 42.20% |
Hartford Life Insurance | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 30,053.46 | 6.40% |
CLASS Y | ||
Rio Tinto America Inc.** | 712,571.00 | 48.69% |
Putnam Investments Profit Sharing Plan* | 409,830.00 | 28.01% |
The Idaho Power Company | ||
Employee Savings Plan** | 143,622.00 | 9.81% |
Putnam Investments** | 78,108.00 | 5.34% |
Madison Paper Industries Savings & | ||
Investment Plan** | 74,684.00 | 5.10% |
Putnam Small Cap Value Fund | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 2,169,386.96 | 6.90% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 2,690,997.11 | 8.60% |
J-23
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
Putnam Small Cap Value Fund, continued | ||
CLASS B | ||
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 623,509.92 | 6.10% |
CLASS C | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 141,060.40 | 5.50% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 256,953.59 | 10.00% |
CLASS M | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 31,478.21 | 6.80% |
CLASS Y | ||
Putnam Investments Profit Sharing Plan* | 1,281,537.00 | 46.22% |
Building Service Local 32b-J Supplemental | ||
Retirement Savings Plan** | 693,249.00 | 25.00% |
Wells Fargo — Retirement Plan Services | ||
P.O. Box 1533 | ||
Minneapolis, MN 55480-1533 | 278,034.00 | 10.03% |
National Waterworks, Inc. | ||
Retirement Savings Plan* | 151,927.00 | 5.48% |
Putnam Investments** | 151,076.00 | 5.45% |
Putnam Tax Exempt Income Fund | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 30,876,638.29 | 23.90% |
CLASS B | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 277,981.50 | 6.20% |
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 372,009.70 | 8.30% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 300,193.65 | 6.70% |
CLASS C | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 71,982.36 | 7.20% |
Primevest Financial Services | ||
(FBO its Customers) | ||
D Emil Mihelich | ||
400 First Street So | ||
Suite 300, P.O. Box 283 | ||
St Cloud, MN 56302 | 101,479.59 | 10.10% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 64,025.57 | 6.40% |
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
CLASS M | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 173,190.65 | 30.40% |
L & F Investments Ltd Partnership | ||
4121 N 64th Pl | ||
Scottsdale, AZ 85251-3109 | 35,682.27 | 6.20% |
Putnam Tax-Free Health Care Fund | ||
COMMON SHARES | ||
Cede & Co Fast | ||
20 Bowling Green | ||
New York, NY 10004-1408 | 12,555,870.01 | 93.40% |
Putnam Tax-Free High Yield Fund | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 16,753,981.04 | 17.10% |
CLASS B | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 549,009.80 | 5.20% |
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 1,080,532.92 | 10.20% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 852,599.63 | 8.10% |
CLASS C | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 92,928.50 | 5.90% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 257,601.66 | 16.30% |
CLASS M | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 184,128.53 | 20.90% |
Pershing LLC | ||
P.O. Box 2052 | ||
Jersey City, NJ 07303-9998 | 46,702.74 | 5.30% |
Putnam Tax Smart Equity Fund® | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 907,628.06 | 7.60% |
CLASS B | ||
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 651,291.80 | 8.00% |
J-24
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
Putnam Tax Smart Equity Fund®, continued | ||
CLASS C | ||
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 375,163.05 | 13.20% |
CLASS M | ||
Pershing LLC | ||
P.O. Box 2052 | ||
Jersey City, NJ 07303-9998 | 18,250.27 | 5.40% |
Stephen M Schwartz & | ||
Valerie B Schwartz JTWROS | ||
5922 New England Woods Dr | ||
Burke, VA 22015-2910 | 24,917.95 | 7.40% |
Putnam U.S. Government Income Trust | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 3,956,317.55 | 5.00% |
CLASS C | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 110,884.74 | 9.70% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 136,312.66 | 12.00% |
CLASS M | ||
Mitsubishi UFJ Securities Co Ltd | ||
Marunouchi Building 2-4-1 | ||
Marunouchi Chiyoda-Ku | ||
Tokyo 100-6317 Japan | 1,866,450.00 | 82.00% |
CLASS R | ||
MG Trust Company Cust | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 13,417.41 | 31.20% |
MG Trust Company As Agent For | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 7,611.00 | 17.60% |
MG Trust Company Cust. FBO | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 4,797.29 | 11.00% |
MG Trust Custodian | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 5,988.60 | 13.90% |
CLASS Y | ||
Putnam Investments Profit Sharing Plan* | 137,549.00 | 40.55% |
Ann M. Gray | ||
6031 Dundee Dr. | ||
Huntington Beach, CA 92647-2408 | 18,245.00 | 5.30% |
Putnam Utilities Growth and Income Fund | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 5,155,422.56 | 12.90% |
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
CLASS M | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 32,483.05 | 12.80% |
CLASS R | ||
MG Trust Custodian | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 14,029.30 | 52.00% |
MG Trust Company As Agent For | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 1,681.50 | 6.20% |
MG Trust Company Cust. FBO | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 6,442.95 | 23.60% |
CLASS Y | ||
Putnam Investments Profit Sharing Plan* | 197,634.00 | 66.22% |
Putnam Vista Fund | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 8,023,595.74 | 5.20% |
CLASS M | ||
Fleet Bank | ||
Automotive Supply Assn PSP | ||
P.O. Box 105779 | ||
Atlanta, GA 30348-5779 | 132,469.58 | 5.00% |
CLASS R | ||
MG Trust Company Cust. FBO | ||
its Customers | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 43,154.41 | 24.60% |
MG Trust Custodian | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 14,403.07 | 8.30% |
Reliance Trust Company | ||
P.O. Box 48529 | ||
Atlanta, GA 30362-1529 | 37,940.50 | 21.90% |
CLASS Y | ||
Emerson Electric Co. Employee | ||
Savings Investment Plan** | 5,169,331.00 | 32.05% |
First Hawaiian Future Plan** | 2,445,542.00 | 15.16% |
Putnam Investments Profit Sharing Plan* | 1,481,125.00 | 9.18% |
Briggs & Stratton Corporation Employee | ||
Savings And Investment Plan** | 1,323,347.00 | 8.21% |
Arch Coal, Inc. Employee Thrift Plan** | 887,439.00 | 5.50% |
Putnam Voyager Fund | ||
CLASS A | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 22,243,919.17 | 7.50% |
CLASS C | ||
Citigroup Global Markets Inc | ||
333 W 34th St | ||
New York, NY 10001-2402 | 204,537.43 | 5.20% |
J-25
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
Putnam Voyager Fund, continued | ||
CLASS C | ||
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 204,628.07 | 5.20% |
CLASS M | ||
Edward D Jones & Co | ||
201 Progress Pkwy | ||
Maryland Hts, MO 63043-3003 | 256,465.11 | 7.80% |
CLASS R | ||
MG Trust Company | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 20,045.72 | 17.70% |
MG Trust Custodian | ||
700 17th St Ste 300 | ||
Denver, CO 80202-3531 | 6,993.56 | 6.10% |
Transamerica Life Insurance Company | ||
1150 S Olive St #T-04-05 | ||
Los Angeles, CA 90015-2209 | 14,093.23 | 12.40% |
MLPF&S For The Sole Benefit | ||
Of Its Customers | ||
4800 Deer Lake Dr E Fl 3 | ||
Jacksonville, FL 32246-6484 | 6,503.48 | 5.70% |
Hartford Life Insurance | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 18,469.20 | 16.30% |
CLASS Y | ||
Abbott Laboratories Stock | ||
Retirement Programs** | 10,842,670.00 | 14.13% |
Putnam VT American Government Income Fund | ||
CLASS IA | ||
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 7,095,432.48 | 100.00% |
CLASS IB | ||
Allstate Life Insurance Co | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 4,281,106.32 | 75.70% |
Allstate Life Of NY | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 499,514.31 | 8.80% |
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 868,585.45 | 15.30% |
Putnam VT Capital Appreciation Fund | ||
CLASS IA | ||
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 2,930,173.61 | 100.00% |
CLASS IB | ||
Allstate Life Insurance Co | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 1,726,037.05 | 73.40% |
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
CLASS IB | ||
Allstate Life Of NY | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 118,800.72 | 5.00% |
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 504,295.33 | 21.40% |
Putnam VT Capital Opportunities Fund | ||
CLASS IA | ||
Hartford Life & Annuity | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 929,191.01 | 59.20% |
Hartford Life Ins Co | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 633,586.46 | 40.40% |
CLASS IB | ||
Allstate Life Insurance Co | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 523,752.08 | 40.80% |
Hartford Life & Annuity | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 604,728.32 | 47.10% |
Hartford Life Ins Co | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 112,199.39 | 8.70% |
Putnam VT Discovery Growth Fund | ||
CLASS IA | ||
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 1,866,144.84 | 100.00% |
CLASS IB | ||
Allstate Life Insurance Co | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 2,709,136.37 | 64.70% |
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 565,328.43 | 13.50% |
Putnam VT Diversified Income Fund | ||
CLASS IA | ||
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 31,786,088.62 | 98.90% |
CLASS IB | ||
Allstate Life Insurance Co | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 9,252,018.14 | 42.30% |
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 9,728,774.18 | 44.50% |
Putnam VT Equity Income Fund | ||
CLASS IA | ||
Hartford Life & Annuity | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 5,568,157.55 | 67.40% |
J-26
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
Putnam VT Equity Income Fund, continued | ||
CLASS IA | ||
Hartford Life Ins Co | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 2,655,979.74 | 32.10% |
CLASS IB | ||
Allstate Life Insurance Co | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 2,347,623.60 | 32.80% |
Metlife Investors VA | ||
501 Boylston St | ||
Boston MA 02116-3769 | 2,546,924.91 | 35.60% |
Hartford Life & Annuity | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 1,406,503.15 | 19.60% |
Hartford Life Ins Co | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 442,979.99 | 6.20% |
Putnam VT The George Putnam Fund of Boston | ||
CLASS IA | ||
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 24,806,333.40 | 99.40% |
CLASS IB | ||
Allstate Life Insurance Co | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 16,668,306.31 | 72.70% |
Allstate Life Of NY | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 1,315,271.52 | 5.70% |
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 4,599,069.08 | 20.00% |
Putnam VT Global Asset Allocation Fund | ||
CLASS IA | ||
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 18,225,157.29 | 98.00% |
CLASS IB | ||
Allstate Life Insurance Co | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 3,173,145.26 | 58.30% |
Allstate Life Of NY | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 569,536.83 | 10.40% |
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 1,693,534.83 | 31.10% |
Putnam VT Global Equity Fund | ||
CLASS IA | ||
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 37,660,012.16 | 99.60% |
CLASS IB | ||
Allstate Life Insurance Co | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 4,301,492.52 | 76.10% |
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
CLASS IB | ||
Allstate Life Of NY | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 481,250.24 | 8.50% |
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 542,610.58 | 9.60% |
Putnam VT Growth and Income Fund | ||
CLASS IA | ||
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 107,637,933.52 | 98.60% |
CLASS IB | ||
Allstate Life Insurance Co | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 17,407,811.89 | 66.00% |
Allstate Life Of NY | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 1,585,431.39 | 6.00% |
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 3,328,817.82 | 12.60% |
Putnam VT Growth Opportunities Fund | ||
CLASS IA | ||
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 3,952,666.76 | 100.00% |
CLASS IB | ||
Allstate Life Insurance Co | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 3,878,869.41 | 70.90% |
Allstate Life Of NY | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 357,054.31 | 6.50% |
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 949,158.01 | 17.30% |
Putnam VT Health Sciences Fund | ||
CLASS IA | ||
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 8,181,821.52 | 100.00% |
CLASS IB | ||
Allstate Life Insurance Co | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 4,828,255.40 | 43.40% |
AXP IDS Life | ||
1497 AXP Financial Ctr | ||
Minneapolis, MN 55474-0014 | 3,929,863.12 | 35.30% |
Lincoln National Variable | ||
1300 S Clinton St | ||
Fort Wayne, IN 46802-3506 | 786,419.64 | 7.00% |
Putnam VT High Yield Fund | ||
CLASS IA | ||
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 43,456,956.56 | 82.00% |
J-27
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
Putnam VT High Yield Fund, continued | ||
CLASS IA | ||
CUNA Mutual Life Insurance Co | ||
2000 Heritage Way | ||
Waverly, IA 50677-9208 | 8,691,424.97 | 16.40% |
CLASS IB | ||
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 3,627,322.55 | 16.90% |
AXP IDS Life | ||
1497 AXP Financial Ctr | ||
Minneapolis, MN 55474-0014 | 2,491,401.07 | 11.60% |
Lincoln Benefit Life Co | ||
C/O Allstate Financial | ||
544 Lakeview Pkwy | ||
Vernon Hills IL 60061-1826 | 1,357,559.62 | 6.30% |
Allstate Life Insurance Co | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 12,322,599.94 | 57.50% |
Putnam VT High Yield Fund, continued | ||
CLASS IB | ||
Allstate Life Of NY | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 1,312,486.28 | 6.10% |
Putnam VT Income Fund | ||
CLASS IA | ||
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 32,773,774.96 | 97.50% |
CLASS IB | ||
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 4,530,096.55 | 19.00% |
Allstate Life Insurance Co | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 16,894,536.26 | 71.10% |
Allstate Life Of NY | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 2,241,264.54 | 9.40% |
Putnam VT International Equity Fund | ||
CLASS IA | ||
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 19,447,896.83 | 99.80% |
CLASS IB | ||
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 11,402,974.62 | 27.30% |
AXP IDS Life | ||
1497 AXP Financial Ctr | ||
Minneapolis, MN 55474-0014 | 5,231,867.88 | 12.50% |
Allstate Life Insurance Co | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 11,886,913.92 | 28.50% |
Allstate Northbrook Life | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 4,105,117.21 | 9.80% |
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
Putnam VT International Growth and Income Fund | ||
CLASS IA | ||
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 15,814,893.10 | 95.60% |
CLASS IB | ||
Allstate Life Insurance Co | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 3,808,317.76 | 54.20% |
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 1,314,029.50 | 18.70% |
Lincoln Benefit Life Co | ||
C/O Allstate Financial | ||
544 Lakeview Pkwy | ||
Vernon Hills, IL 60061-1826 | 729,606.45 | 10.30% |
Putnam VT International New Opportunities Fund | ||
CLASS IA | ||
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 6,285,900.99 | 99.80% |
CLASS IB | ||
Allstate Life Insurance Co | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 2,165,990.45 | 23.80% |
AXP IDS Life | ||
1497 AXP Financial Ctr | ||
Minneapolis, MN 55474-0014 | 6,191,223.39 | 68.00% |
Putnam VT Investors Fund | ||
CLASS IA | ||
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 20,456,346.18 | 99.90% |
CLASS IB | ||
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 3,745,382.96 | 19.60% |
Allstate Life Insurance Co | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 13,883,552.60 | 72.90% |
Allstate Life Of NY | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 1,376,807.94 | 7.20% |
Putnam VT Mid Cap Value Fund | ||
CLASS IA | ||
Hartford Life & Annuity | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 2,024,253.98 | 56.60% |
Hartford Life Ins Co | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 1,547,171.85 | 43.30% |
CLASS IB | ||
Hartford Life & Annuity | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 348,537.24 | 19.80% |
Hartford Life Ins Co | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 207,352.73 | 11.70% |
J-28
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
Putnam VT Mid Cap Value Fund, continued | ||
CLASS IB | ||
Allstate Life Insurance Co | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 1,122,580.12 | 63.80% |
Putnam VT Money Market Fund | ||
CLASS IA | ||
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 194,520,160.61 | 97.50% |
CLASS IB | ||
Allstate Life Insurance Co | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 150,296,267.08 | 77.70% |
Allstate Life Of NY | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 24,911,354.44 | 12.80% |
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 10,698,882.56 | 5.50% |
Putnam VT New Opportunities Fund | ||
CLASS IA | ||
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 32,765,721.51 | 60.10% |
AXP IDS Life | ||
1497 AXP Financial Ctr | ||
Minneapolis, MN 55474-0014 | 19,772,338.10 | 36.20% |
CLASS IB | ||
Allstate Life Insurance Co | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 5,310,476.30 | 74.70% |
Allstate Life Of NY | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 521,107.21 | 7.30% |
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 1,221,581.28 | 17.10% |
Putnam VT New Value Fund | ||
CLASS IA | ||
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 20,164,202.43 | 99.20% |
CLASS IB | ||
Allstate Life Insurance Co | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 10,883,868.73 | 67.60% |
Allstate Life Of NY | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 898,100.01 | 5.50% |
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 3,365,490.29 | 20.90% |
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
Putnam VT OTC & Emerging Growth Fund | ||
CLASS IA | ||
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 5,314,658.57 | 92.10% |
Hartford Life Ins Co | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 453,137.81 | 7.80% |
CLASS IB | ||
Allstate Life Insurance Co | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 4,036,520.76 | 83.60% |
Allstate Life Of NY | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 302,544.67 | 6.20% |
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 489,219.28 | 10.10% |
Putnam VT Research Fund | ||
CLASS IA | ||
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 5,354,857.10 | 100.00% |
CLASS IB | ||
Allstate Life Insurance Co | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 6,291,983.53 | 80.60% |
Allstate Life Of NY | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 481,755.55 | 6.10% |
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 975,410.91 | 12.50% |
Putnam VT Small Cap Value Fund | ||
CLASS IA | ||
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 9,951,766.86 | 100.00% |
CLASS IB | ||
Allstate Life Insurance Co | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 4,634,579.30 | 15.30% |
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 7,784,427.24 | 25.70% |
AXP American Enterprise Life | ||
1497 AXP Financial Ctr | ||
Minneapolis, MN 55474-0014 | 1,725,242.87 | 5.70% |
Metlife Insurance Company | ||
1 City Pl | ||
Hartford, CT 06103-3432 | 9,228,161.40 | 30.50% |
Metlife Life And Annuity Company | ||
1 City Pl | ||
Hartford, CT 06103-3432 | 2,995,260.97 | 9.90% |
J-29
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
Putnam VT Small Cap Value Fund, continued | ||
CLASS IB | ||
Northbrook Life Insurance Co | ||
3100 Sanders Rd Ste K4A | ||
Northbrook, IL 60062-7155 | 1,945,337.16 | 6.40% |
Putnam VT Utilities Growth and Income Fund | ||
CLASS IA | ||
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 17,603,657.85 | 99.90% |
CLASS IB | ||
Allstate Life Insurance Co | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 2,808,555.23 | 81.30% |
Allstate Life Of NY | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 303,108.69 | 8.70% |
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 340,853.63 | 9.80% |
Putnam VT Vista Fund | ||
CLASS IA | ||
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 11,572,456.79 | 97.10% |
CLASS IB | ||
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 1,216,012.88 | 7.70% |
Allstate Life Insurance Co | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 5,791,881.79 | 37.00% |
AXP American Enterprise Life | ||
1497 AXP Financial Ctr | ||
Minneapolis, MN 55474-0014 | 822,661.46 | 5.20% |
AXP IDS Life | ||
1497 AXP Financial Ctr | ||
Minneapolis, MN 55474-0014 | 6,491,044.81 | 41.50% |
Shareholder Name | Percentage | |
and Address | Holdings | Owned |
Putnam VT Voyager Fund | ||
CLASS IA | ||
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 45,527,624.87 | 99.20% |
CLASS IB | ||
Hartford Life | ||
P.O. Box 2999 | ||
Hartford, CT 06104-2999 | 1,785,382.20 | 13.00% |
Allstate Life Insurance Co | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 8,977,114.04 | 65.80% |
Allstate Life Of NY | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 703,036.17 | 5.10% |
Allstate Northbrook Life | ||
3100 Sanders Rd | ||
Northbrook, IL 60062-7155 | 832,192.61 | 6.10% |
Principal Financial Group PFLX | ||
711 High St | ||
Des Moines, IA 50392-0001 | 840,714.88 | 6.10% |
* The address for the name listed is: c/o Putnam Fiduciary Trust Company, as trustee or agent, One Post Office Square, Boston, MA 02109.
** The address for the name listed is: c/o Mercer Trust Company, as trustee or agent, Investor’s Way, Norwood, MA 02062.
*** The address for the name listed is: c/o Putnam Fiduciary Trust Company, as service provider, One Post Office Square, Boston, MA 02109.
J-30
Additional ownership information for Putnam closed-end funds
In addition to the holdings information listed above for the Putnam closed-end funds, as of February 9, 2007, to the knowledge of the funds, the following additional persons owned beneficially or of record more than 5% of the common shares of certain Putnam closed-end funds.
Shareholder Name | Percentage | |||
Fund | and Address | Holdings | Owned | |
Wachovia Corporation | 1,153,575.00 | 5.12%1 | ||
Charlotte, NC 28288-0137 | ||||
Putnam High Income Securities Fund | First Trust Portfolios L.P., | 1,189,605.00 | 5.30%2 | |
First Trust Advisors L.P., and | ||||
The Charger Corporation | ||||
1001 Warrenville Road | ||||
Lisle, IL 60532 | ||||
Putnam High Yield Municipal Trust | Roumell Asset Management, LLC | 1,281,699.00 | 5.98%3 | |
Chevy Chase, MD 20815 | ||||
Karpus Management, Inc., d/b/a | 1,515,280.00 | 7.27%4 | ||
183 Sully’s Trail | ||||
Pittsford, NY 14534 | ||||
Putnam Master Intermediate Income Trust | Wachovia Corporation | 5,280,935.67 | 5.73%5 | |
One Wachovia Center | ||||
Charlotte, NC 28288-0137 | ||||
Putnam Municipal Opportunities Trust | First Trust Portfolios L.P., | 965,099.00 | 6.10%6 | |
The Charger Corporation | ||||
1001 Warrenville Road | ||||
Lisle, IL 60532 | ||||
Putnam New York Investment Grade | Karpus Management, Inc., d/b/a | 308,665.00 | 11.21%7 | |
Municipal Trust | ||||
Pittsford, | ||||
Putnam Tax-Free Health Care Fund | Bulldog Investors General Partnership | 1,384,487.00 | 10.21%8 | |
60 Heritage Drive | ||||
Pleasantville, NY 10570 | ||||
* Believed1Based on information obtained from a Schedule 13G filed with the Securities and Exchange Commission on February 6, 2007.
2Based on information obtained from a Schedule 13G filed with the Securities and Exchange Commission on February 9, 2006.
3Based on information oabtained from a Schedule 13D filed with the Securities and Exchange Commission on December 29, 2006. The 1,281,699 shares are deemed to hold shares onlybe owned beneficially by Roumell Asset Management, LLC solely as a nominee.result of its discretionary power over such shares as investment adviser. In addition, James C. Roumell and Deborah Billet-Roumell have beneficial ownership of 4,700 shares of common stock, representing less than 1% of outstanding shares.
** Ownership reported as of March 9, 2006, as denoted4Based on information obtained from a report on Schedule 13D/A filed with the SECSecurities and Exchange Commission on February 9, 2007. Shares reported may include shares owned by certain affiliates of Karpus Investment Management.
5Based on information obtained from a Schedule 13G filed with the Securities and Exchange Commission on February 6, 2007.
6Based on information obtained from a Schedule 13G filed with the Securities and Exchange Commission on January 26, 2007.
7Based on information obtained from a Schedule 13D/A filed with the Securities and Exchange Commission on February 9, 2007. As of March 6, 2007, Karpus Investment Management owned 326,615 common shares of the fund, representing 11.77% of outstanding common shares (based on information obtained from a Schedule 13D/A filed with the Securities and Exchange Commission on March 6, 2007). Shares reported may include shares owned by certain affiliates of Karpus Investment Management.
8Based on information obtained from a Schedule 13D/A filed with the Securities and Exchange Commission on November 21, 2006; includes beneficial ownership of shares owned by Opportunity Income Plus L.P., Andrew Dakos, and Phillip Goldstein.
J-31
APPENDIX K
Security Ownership
The following tables set forth for each Trustee, and for the Trustees and officers as a group, the amount of equity securities owned in each Putnam fund as of February 9, 2006.2007 (except as otherwise indicated). Where the number of shares beneficially owned exceeds 1% of the class owned, the percentage is included in parentheses below. None of the Trustees or officers owned shares of Putnam RetirementReady 2030 Fund, Putnam RetirementReady 2035 Fund, Putnam RetirementReady 2040 Fund, Putnam RetirementReady 2050 Fund, Putnam RetirementReady Maturity Fund, Putnam VT Health Sciences Fund, Putnam VT Money Market Fund, or Putnam VT Utilities Growth and Income Fund as of that date. Additional ownership information for the funds that are series of Putnam Variable Trust is shown separately at the end of this Appendix J.
Shares | Shares | Shares | Shares | |||||||
Beneficially | Beneficially | Beneficially | Beneficially | |||||||
Trustees | Owned | Owned | Owned | Owned | ||||||
Putnam American | Putnam AMT-Free | Putnam Arizona | Putnam Asset | |||||||
Government | Insured | Tax Exempt | Allocation: | |||||||
Income Fund | Municipal Fund | Income Fund | Balanced Portfolio | |||||||
Class A | Class Y | Class A | Class A | Class A | Class Y | |||||
John A. Hill | 13,823.002 | — | 187.630 | 215.206 | 373,492.363 | — | ||||
Jameson Adkins Baxter | 404.423 | — | 532.513 | 178.937 | 13,578.820 | — | ||||
Charles B. Curtis | 122.983 | — | 131.409 | 127.887 | 117.321 | — | ||||
Myra R. Drucker | 107.777 | — | 110.796 | 110.369 | 103.753 | — | ||||
Charles E. Haldeman, Jr. | 1,277.084 | — | 786.056 | 1,274.400 | 1.519.211 | — | ||||
Paul L. Joskow | 1,460.590 | — | 150.413 | 159.633 | 21,997.748 | — | ||||
Elizabeth T. Kennan | 132.454 | — | 111.710 | 111.880 | 349.248 | — | ||||
Kenneth R. Leibler | 100.951 | — | 101.337 | 101.154 | 100.455 | — | ||||
Robert E. Patterson | 2,058.733 | — | 111.804 | 111.597 | 1.170.508 | — | ||||
George Putnam, III | 3,074.922 | — | 808.167 | 1,245.684 | 2.954.054 | — | ||||
W. Thomas Stephens | 318.728 | — | 158.418 | 152.442 | 43,361.340 | — | ||||
Richard B. Worley | 107.777 | — | 110.601 | 110.121 | 103.753 | — | ||||
Trustees and Officers | 22,989.424 | 10,630.749 | 3,300.854 | 3,899.310 | 458,848.574 | 13,129.392 | ||||
as a group | (1.01%) | |||||||||
K-1
Shares | Shares | Shares | Shares | |||||||||
Beneficially | Beneficially | Beneficially | Beneficially | |||||||||
Trustees | Owned | Owned | Owned | Owned | ||||||||
Putnam | ||||||||||||
Putnam Asset | Putnam Asset | Putnam California | California | |||||||||
Allocation: | Allocation: | Investment Grade | Tax Exempt | |||||||||
Conservative Portfolio | Growth Portfolio | Municipal Trust | Income Fund | |||||||||
Class A | Class Y | Class A | Class Y | Common | Class A | |||||||
John A. Hill | 111,994.998 | — | 6,209.773 | — | 224.592 | 187.514 | ||||||
Jameson Adkins Baxter | 1,228.577 | — | 21,262.989 | — | 188.704 | 235.702 | ||||||
Charles B. Curtis | 14,097.461 | — | 116.151 | — | 117.774 | 136.190 | ||||||
Myra R. Drucker | 106.957 | — | 5,278.448 | — | 109.068 | 114.668 | ||||||
Charles E. Haldeman, Jr. | 537,246.818 | — | 1,045.575 | — | 243.000 | 1,444.841 | ||||||
(1.13%) | ||||||||||||
Paul L. Joskow | 248.471 | — | 1,080.277 | — | 100.000 | 182.342 | ||||||
Elizabeth T. Kennan | 346.043 | — | 2,060.923 | — | 201.338 | 134.329 | ||||||
Kenneth R. Leibler | 100.772 | — | 100.570 | — | 100.000 | 101.437 | ||||||
Robert E. Patterson | 1,234.123 | — | 2,246.213 | — | 100.000 | 116.075 | ||||||
George Putnam, III | 4,537.829 | — | 25,641.662 | — | 1,100.000 | 1,479.584 | ||||||
W. Thomas Stephens | 5,056.591 | — | 102.567 | — | 100.000 | 164.812 | ||||||
Richard B. Worley | 106.957 | — | 102.567 | — | 102.960 | 114.444 | ||||||
Trustees and Officers | 676,305.597 | 323.931 | 71,164.731 | 54,970.239 | 2,687.436 | 4,411.938 | ||||||
as a group | (1.42%) | |||||||||||
Shares | Shares | Shares | ||||||||||
Beneficially | Beneficially | Beneficially | ||||||||||
Trustees | Owned | Owned | Owned | |||||||||
Putnam Capital | Putnam Capital | Putnam Classic | ||||||||||
Appreciation Fund | Opportunities Fund | Equity Fund | ||||||||||
Class A | Class Y | Class A | Class Y | Class A | Class Y | |||||||
John A. Hill | 8,246.533 | — | 18,783.858 | — | 14,469.495 | — | ||||||
Jameson Adkins Baxter | 313.753 | — | — | — | 4,895.534 | — | ||||||
Charles B. Curtis | 103.245 | — | 140.848 | — | 110.584 | — | ||||||
Myra R. Drucker | 100.414 | — | 132.315 | — | 102.809 | — | ||||||
Charles E. Haldeman, Jr. | 654.057 | — | 1,318.134 | — | — | 1,050.623 | ||||||
Paul L. Joskow | 605.292 | — | 242.941 | — | 2,410.818 | — | ||||||
Elizabeth T. Kennan | 252.970 | — | 1,461.152 | — | 197.645 | — | ||||||
Kenneth R. Leibler | 100.000 | — | 112.703 | — | 100.598 | — | ||||||
Robert E. Patterson | 484.635 | — | 2,010.019 | — | 708.459 | — | ||||||
George Putnam, III | 1,243.373 | — | 1,577.716 | — | 6,509.541 | — | ||||||
W. Thomas Stephens | 137.950 | — | 132.315 | — | 148.112 | — | ||||||
Richard B. Worley | 100.414 | — | 132.315 | — | 102.809 | — | ||||||
Trustees and Officers | 12,442.123 | 7,753.123 | 35,109.626 | 10,238.954 | 29,756.404 | 8,648.264 | ||||||
as a group | (2.46%) | (2.38%) | ||||||||||
K-2
Shares | Shares | Shares | ||||||||||
Beneficially | Beneficially | Beneficially | ||||||||||
Trustees | Owned | Owned | Owned | |||||||||
Putnam Convertible | Putnam Discovery | Putnam Diversified | ||||||||||
Income-Growth Trust | Growth Fund | Income Trust | ||||||||||
Class A | Class Y | Class A | Class Y | Class A | Class Y | |||||||
John A. Hill | 32,061.700 | — | 2,303.388 | — | 1,953.567 | — | ||||||
Jameson Adkins Baxter | 7,969.065 | — | 7,048.603 | — | 1,128.750 | — | ||||||
Charles B. Curtis | 124.126 | — | 199.733 | — | 248.125 | — | ||||||
Myra R. Drucker | 107.759 | — | 100.000 | — | 115.849 | — | ||||||
Charles E. Haldeman, Jr. | 904.871 | — | 696.286 | — | — | 32,019.160 | ||||||
Paul L. Joskow | 686.473 | — | 360.285 | — | 387.474 | — | ||||||
Elizabeth T. Kennan | 1,071.157 | — | 113.856 | — | 750.000 | — | ||||||
Kenneth R. Leibler | 100.678 | — | 100.000 | — | 101.360 | — | ||||||
Robert E. Patterson | 3,485.678 | — | 799.281 | — | 1,404.333 | — | ||||||
George Putnam, III | 13,051.715 | — | 2,101.545 | — | 5,434.823 | — | ||||||
W. Thomas Stephens | 208.558 | — | 208.686 | — | 349.475 | — | ||||||
Richard B. Worley | 106.899 | — | 100.000 | — | 115.849 | — | ||||||
Trustees and Officers | 61,086.152 | 19,890.021 | 14,837.343 | 3,384.176 | 11,989.605 | 40,204.574 | ||||||
as a group | (1.59%) | (2.42%) | ||||||||||
Shares | Shares | Shares | ||||||||||
Beneficially | Beneficially | Beneficially | ||||||||||
Trustees | Owned | Owned | Owned | |||||||||
Putnam Equity | Putnam Europe | Putnam Floating Rate | ||||||||||
Income Fund | Equity Fund | Income Fund | ||||||||||
Class A | Class Y | Class A | Class Y | Class A | Class Y | |||||||
John A. Hill | 13,569.172 | — | 523.756 | — | 549,196.252 | — | ||||||
(1.62%) | ||||||||||||
Jameson Adkins Baxter | 3,390.567 | — | 2,290.402 | — | 2,200.690 | — | ||||||
Charles B. Curtis | 136.833 | — | 109.809 | — | 107.284 | — | ||||||
Myra R. Drucker | 125.419 | — | 104.751 | — | 112.041 | — | ||||||
Charles E. Haldeman, Jr. | 1,049.823 | 3,551.283 | 743.434 | — | 1,150.494 | — | ||||||
Paul L. Joskow | 8,180.125 | — | 489.440 | — | 9,503.469 | — | ||||||
Elizabeth T. Kennan | 359.837 | — | 542.203 | — | 105.439 | — | ||||||
Kenneth R. Leibler | 112.173 | — | 102.172 | — | 101.707 | — | ||||||
Robert E. Patterson | 1,650.075 | — | 2,033.819 | — | 1,069.397 | — | ||||||
George Putnam, III | 8,415.606 | — | 977.920 | — | 3,849.695 | — | ||||||
W. Thomas Stephens | 191.040 | — | 140.795 | — | 134,975.747 | — | ||||||
Richard B. Worley | 125.002 | — | 104.751 | — | 111.850 | — | ||||||
Trustees and Officers | 46,071.331 | 12,890.841 | 8,623.288 | 280.283 | 702,484.065 | 66,837.482 | ||||||
as a group | (2.07%) | (19.32%) | ||||||||||
K-3
Shares | Shares | Shares | |||||||||||||
Beneficially | Beneficially | Beneficially | |||||||||||||
Trustees | Owned | Owned | Owned | ||||||||||||
The Putnam Fund for | The George Putnam Fund | Putnam Global | |||||||||||||
Growth and Income | of Boston | Equity Fund | |||||||||||||
Class A | Class Y | Class A | Class Y | Class A | Class Y | ||||||||||
John A. Hill | 11,786.523 | — | 25,757.193 | — | 51,073.375 | — | |||||||||
Jameson Adkins Baxter | 16,850.506 | — | 11,742.687 | — | 9,945.299 | — | |||||||||
Charles B. Curtis | 130.983 | — | 293.279 | — | 438.950 | — | |||||||||
Myra R. Drucker | 118.625 | — | 117.435 | — | 102.668 | — | |||||||||
Charles E. Haldeman, Jr. | 972.775 | — | 738.172 | — | 1,478.755 | — | |||||||||
Paul L. Joskow | 8,802.201 | — | 1,994.013 | — | 633.784 | — | |||||||||
Elizabeth T. Kennan | 285.325 | — | 1,442.227 | — | 4,987.810 | — | |||||||||
Kenneth R. Leibler | 113.330 | — | 109.686 | — | 101.588 | — | |||||||||
Robert E. Patterson | 602.556 | — | 1,254.030 | — | 14,611.566 | — | |||||||||
George Putnam, III | 36,058.016 | — | 12,879.370 | — | 31,866.947 | — | |||||||||
W. Thomas Stephens | 188.904 | — | 301.759 | — | 641.484 | — | |||||||||
Richard B. Worley | 118.625 | — | 117.435 | — | 102.668 | — | |||||||||
Trustees and Officers | 76,065.887 | 19,172.389 | 58,169.654 | 4,583.433 | 117,081.043 | 2,301.460 | |||||||||
as a group | |||||||||||||||
Shares | Shares | Shares | Shares | ||||||||||||
Beneficially | Beneficially | Beneficially | Beneficially | ||||||||||||
Trustees | Owned | Owned | Owned | Owned | |||||||||||
Putnam Global | Putnam Global Natural | Putnam Growth | Putnam Health | ||||||||||||
Income Trust | Resources Fund | Opportunities Fund | Sciences Trust | ||||||||||||
Class A | Class A | Class Y | Class A | Class Y | Class A | Class Y | |||||||||
John A. Hill | 154.607 | 8,768.918 | — | 2,538.040 | — | 4,656.855 | — | ||||||||
Jameson Adkins Baxter | 159.620 | 1,008.625 | — | 479.604 | — | 178.569 | — | ||||||||
Charles B. Curtis | 134.289 | 160.312 | — | 105.939 | — | 126.934 | — | ||||||||
Myra R. Drucker | 111.402 | 141.232 | — | 100.867 | — | 126.934 | — | ||||||||
Charles E. Haldeman, Jr. | 967.131 | 661.434 | — | 890.000 | 3,977.847 | 237.662 | — | ||||||||
Paul L. Joskow | 184.791 | 174.550 | — | 840.579 | — | 555.030 | — | ||||||||
Elizabeth T. Kennan | 350.369 | 1,137.652 | — | 100.867 | — | 126.934 | — | ||||||||
Kenneth R. Leibler | 100.969 | 112.147 | — | 100.000 | — | 110.546 | — | ||||||||
Robert E. Patterson | 810.440 | 390.728 | — | 2,146.569 | — | 292.114 | — | ||||||||
George Putnam, III | 3,871.242 | 1,714.971 | — | 2,785.949 | — | 2,897.889 | — | ||||||||
W. Thomas Stephens | 168.477 | 211.480 | — | 101.894 | — | 175.468 | — | ||||||||
Richard B. Worley | 111.170 | 141.232 | — | 100.867 | — | 126.934 | — | ||||||||
Trustees and Officers | 7,124.507 | 14,623.281 | 5,054.012 | 10,373.246 | 3,977.847 | 9,631.325 | 9,051.754 | ||||||||
as a group | (1.05%) | (2.63%) | |||||||||||||
K-4
Shares | Shares | Shares | Shares | ||||||||||||||
Beneficially | Beneficially | Beneficially | Beneficially | ||||||||||||||
Trustees | Owned | Owned | Owned | Owned | |||||||||||||
Putnam High Income | Putnam High Yield | Putnam High Yield | Putnam High | ||||||||||||||
Securities Fund | Advantage Fund | Municipal Trust | Yield Trust | ||||||||||||||
Common | Class A | Class Y | Common | Class A | Class Y | ||||||||||||
John A. Hill | 86,341.603 | 448.064 | — | 223.227 | 3,247.157 | — | |||||||||||
Jameson Adkins Baxter | 1,619.792 | 2,625.395 | — | 203.997 | 21,036.989 | — | |||||||||||
Charles B. Curtis | 395.447 | 163.381 | — | 115.649 | 450.564 | — | |||||||||||
Myra R. Drucker | 361.503 | 117.953 | — | 106.505 | 242.777 | — | |||||||||||
Charles E. Haldeman, Jr. | 841.000 | 364.706 | — | 500.000 | 2,059.289 | — | |||||||||||
Paul L. Joskow | 334.178 | 3,766.751 | — | 100.000 | 7,105.469 | — | |||||||||||
Elizabeth T. Kennan | 451.380 | 519.984 | — | 201.315 | 931.284 | — | |||||||||||
Kenneth R. Leibler | 100.000 | 102.258 | — | 100.000 | 101.832 | — | |||||||||||
Robert E. Patterson | 1,084.356 | 9,231.793 | — | 300.000 | 7,182.140 | — | |||||||||||
George Putnam, III | 1,670.000 | 3,550.811 | — | 2,100.000 | 24,842.086 | — | |||||||||||
W. Thomas Stephens | 334.178 | 240.281 | — | 100.000 | 663.835 | — | |||||||||||
Richard B. Worley | 337.591 | 117.953 | — | 100.889 | 235.868 | — | |||||||||||
Trustees and Officers | 93,871.028 | 21,249.330 | 358.933 | 4,151.582 | 68,515.481 | 15,976.865 | |||||||||||
as a group | |||||||||||||||||
Shares | Shares | Shares | Shares | ||||||||||||||
Beneficially | Beneficially | Beneficially | Beneficially | ||||||||||||||
Trustees | Owned | Owned | Owned | Owned | |||||||||||||
Putnam Income | Putnam International | Putnam International | |||||||||||||||
Putnam Income Fund | Strategies Fund | Capital Opportunities Fund | Equity Fund | ||||||||||||||
Class A | Class A | Class A | Class Y | Class A | Class Y | ||||||||||||
John A. Hill | 19,337.397 | 25,142.622 | 9,678.404 | — | 23,622.060 | — | |||||||||||
(2.26%) | |||||||||||||||||
Jameson Adkins Baxter | 4,201.791 | 5,175.344 | 6,710.478 | — | 9,770.372 | — | |||||||||||
Charles B. Curtis | 128.161 | 105.993 | 111.068 | — | 220.229 | — | |||||||||||
Myra R. Drucker | 109.159 | 105.683 | 104.977 | — | 110.651 | — | |||||||||||
Charles E. Haldeman, Jr. | 2,328.993 | 203.425 | 745.715 | — | 746.663 | — | |||||||||||
Paul L. Joskow | 218.357 | 503.803 | 426.876 | — | 6,666.243 | — | |||||||||||
Elizabeth T. Kennan | 369.677 | 546.217 | 1,652.780 | — | 2,409.760 | — | |||||||||||
Kenneth R. Leibler | 101.164 | 101.568 | 102.024 | — | 106.953 | — | |||||||||||
Robert E. Patterson | 1,538.650 | 1,010.337 | 1,829.646 | — | 4,032.718 | — | |||||||||||
George Putnam, III | 6,272.696 | 3,022.820 | 1,168.739 | — | 3,320.198 | — | |||||||||||
W. Thomas Stephens | 161.461 | 105.993 | 125.616 | — | 198.180 | — | |||||||||||
Richard B. Worley | 109.159 | — | 104.977 | — | 110.651 | — | |||||||||||
Trustees and Officers | 34,876.665 | 36,023.805 | 22,761.300 | 8,595.540 | 68,535.121 | 9,585.550 | |||||||||||
as a group | (3.24%) | ||||||||||||||||
K-5
Shares | Shares | Shares | Shares | |||||||||||
Beneficially | Beneficially | Beneficially | Beneficially | |||||||||||
Trustees | Owned | Owned | Owned | Owned | ||||||||||
Putnam Investment | ||||||||||||||
Putnam International | Putnam International | Grade | Putnam | |||||||||||
Growth and Income Fund | New Opportunities Fund | Municipal Trust | Investors Fund | |||||||||||
Class A | Class Y | Class A | Class Y | Common | Class A | Class Y | ||||||||
John A. Hill | 5,702.890 | — | 1,279.259 | — | 225.245 | 29,699.767 | — | |||||||
Jameson Adkins Baxter | 4,974.728 | — | 2,538.625 | — | 212.401 | 14,122.693 | — | |||||||
Charles B. Curtis | 117.918 | — | 104.533 | — | 119.333 | 103.824 | — | |||||||
Myra R. Drucker | 112.265 | — | 102.316 | — | 106.124 | 1,869.479 | — | |||||||
Charles E. Haldeman, Jr. | 1,614.759 | — | 1,075.395 | — | 330.000 | 966.796 | — | |||||||
Paul L. Joskow | 849.299 | — | 1,417.629 | — | 100.000 | 8,572.119 | — | |||||||
Elizabeth T. Kennan | 728.007 | — | 202.289 | — | 109.015 | 4,203.469 | — | |||||||
Kenneth R. Leibler | 110.097 | — | 100.444 | — | 100.000 | 100.216 | — | |||||||
Robert E. Patterson | 6,209.416 | — | 3,957.003 | — | 300.000 | 4,784.644 | — | |||||||
George Putnam, III | 2,490.577 | — | 7,173.199 | — | 1,500.000 | 7,939.431 | — | |||||||
W. Thomas Stephens | 167.302 | — | 151.442 | — | 180.672 | 117.268 | — | |||||||
Richard B. Worley | 112.265 | — | 102.316 | — | 100.822 | 101.376 | — | |||||||
Trustees and Officers | 23,316.587 | 3,177.074 | 18,972.767 | 14,264.833 | 3,383.612 | 81,272.731 | 65,794.112 | |||||||
as a group | (1.33%) | |||||||||||||
Shares | Shares | Shares | Shares | Shares | Shares | |||||||||
Beneficially | Beneficially | Beneficially | Beneficially | Beneficially | Beneficially | |||||||||
Trustees | Owned | Owned | Owned | Owned | Owned | Owned | ||||||||
Putnam Limited | Putnam | Putnam | Putnam | Putnam | ||||||||||
Duration | Managed | Massachusetts | Master | Michigan | Putnam | |||||||||
Government | Municipal | Tax Exempt | Intermediate | Tax Exempt | Mid Cap | |||||||||
Income Fund | Income Trust | Income Fund | Income Trust | Income Fund | Value Fund | |||||||||
Class A | Common | Class A | Common | Class A | Class A | Class Y | ||||||||
John A. Hill | 1,564.506 | 225.663 | 171.456 | 442.687 | 164.230 | 138.524 | — | |||||||
Jameson Adkins Baxter | 2,888.428 | 212.250 | 186.434 | 461.972 | 180.430 | 3,624.800 | — | |||||||
Charles B. Curtis | 124.017 | 117.170 | 128.988 | 119.146 | 128.683 | 134.808 | — | |||||||
Myra R. Drucker | 108.227 | 106.671 | 111.173 | 106.798 | 109.099 | 127.198 | — | |||||||
Charles E. Haldeman, Jr. | 2,228.809 | 450.000 | 1,247.201 | 510.000 | 1,294.030 | 1,462.201 | — | |||||||
Paul L. Joskow | 289.058 | 100.000 | 12,693.301 | 100.000 | 161.108 | 152.730 | — | |||||||
Elizabeth T. Kennan | 771.156 | 108.920 | 112.331 | 270.436 | 110.378 | 623.395 | — | |||||||
Kenneth R. Leibler | 101.061 | 100.000 | 101.118 | 100.000 | 101.049 | 112.193 | — | |||||||
Robert E. Patterson | 873.531 | 300.000 | 101.496 | 587.000 | 110.334 | 1,593.851 | — | |||||||
George Putnam, III | 4,813.954 | 1,800.000 | 5,967.938 | 2,178.000 | 1,284.848 | 2,721.327 | — | |||||||
W. Thomas Stephens | 147.690 | 100.000 | 155.925 | 100.000 | 152.728 | 127.198 | — | |||||||
Richard B. Worley | 108.139 | 100.891 | 110.948 | 100.931 | 108.900 | 127.198 | — | |||||||
Trustees and Officers | 14,018.576 | 3,721.565 | 35,026.462 | 5,076.970 | 3,905.817 | 18,178.815 | 10,410.120 | |||||||
as a group | ||||||||||||||
K-6
Shares | Shares | Shares | Shares | Shares | |||||||||
Beneficially | Beneficially | Beneficially | Beneficially | Beneficially | |||||||||
Trustees | Owned | Owned | Owned | Owned | Owned | ||||||||
Putnam | |||||||||||||
Putnam | New Jersey | ||||||||||||
Putnam Minnesota | Putnam | Municipal | Tax Exempt | ||||||||||
Tax Exempt | Putnam | Municipal | Opportunities | Income | |||||||||
Income Fund | Money Market Fund | Bond Fund | Trust | Fund | |||||||||
Class A | Class A | Class R | Common | Common | Class A | ||||||||
John A. Hill | 219.763 | 906,249.650 | 76,931.310 | 322.603 | 226.131 | 227.595 | |||||||
Jameson Adkins Baxter | 179.111 | 121,091.870 | — | 3,570.000 | 207.003 | 183.577 | |||||||
Charles B. Curtis | 127.254 | 399,904.680 | — | 121.003 | 121.225 | 126.582 | |||||||
Myra R. Drucker | 109.477 | 107.980 | 12.880 | 106.735 | 106.349 | 109.346 | |||||||
Charles E. Haldeman, Jr. | 1,294.671 | — | 8,385.310 | 250.000 | 270.000 | 1,277.404 | |||||||
Paul L. Joskow | 162.518 | 294,174.600 | — | 196.000 | 100.000 | 158.564 | |||||||
Elizabeth T. Kennan | 110.683 | 14,556.200 | — | 189.709 | 119.793 | 110.425 | |||||||
Kenneth R. Leibler | 101.085 | 7,677.000 | — | 100.000 | 100.000 | 101.092 | |||||||
Robert E. Patterson | 110.714 | 187,507.700 | — | 293.000 | 100.000 | 110.435 | |||||||
George Putnam, III | 1,293.642 | 612,594.980 | — | 1,184.000 | 1,300.000 | 1,246.818 | |||||||
W. Thomas Stephens | 152.042 | 2,468.300 | — | 196.000 | 100.000 | 150.959 | |||||||
Richard B. Worley | 109.268 | 107.950 | 9,630.200 | 100.811 | 100.805 | 109.125 | |||||||
Trustees and Officers | 3,970.228 | 3,439,303.440 | 94,959.700 | 6,629.861 | 2,851.306 | 3,911.922 | |||||||
as a group | |||||||||||||
Shares | Shares | Shares | Shares | ||||||||||
Beneficially | Beneficially | Beneficially | Beneficially | ||||||||||
Trustees | Owned | Owned | Owned | Owned | |||||||||
Putnam | Putnam | ||||||||||||
New York | New York | ||||||||||||
Putnam New | Putnam New | Investment Grade | Tax Exempt | ||||||||||
Opportunities Fund | Value Fund | Municipal Trust | Income Fund | ||||||||||
Class A | Class Y | Class A | Class Y | Common | Class A | ||||||||
John A. Hill | 6,660.309 | — | 5,971.716 | — | 71,595.182 | 5,190.748 | |||||||
(2.58%) | |||||||||||||
Jameson Adkins Baxter | 1,733.616 | — | 11,286.655 | — | 186.650 | 559.437 | |||||||
Charles B. Curtis | 104.835 | — | 123.592 | — | 116.241 | 264.359 | |||||||
Myra R. Drucker | 100.000 | — | 1,571.520 | — | 105.266 | 112.375 | |||||||
Charles E. Haldeman, Jr. | 293.214 | — | 1,047.856 | 3,205.655 | 280.000 | 1,360.257 | |||||||
Paul L. Joskow | 980.800 | — | 728.260 | — | 100.000 | 344.800 | |||||||
Elizabeth T. Kennan | 100.000 | — | 2,473.418 | — | 189.263 | 243.453 | |||||||
Kenneth R. Leibler | 100.000 | — | 108.289 | — | 100.000 | 101.325 | |||||||
Robert E. Patterson | 1,038.444 | — | 1,528.107 | — | 100.000 | 113.637 | |||||||
George Putnam, III | 763.162 | — | 12,017.915 | — | 1,200.000 | 1,403.735 | |||||||
W. Thomas Stephens | 133.948 | — | 165.765 | — | 100.000 | 160.978 | |||||||
Richard B. Worley | 100.000 | — | 115.245 | — | 100.714 | 112.142 | |||||||
Trustees and Officers | 12,709.436 | 2,714.411 | 40,761.847 | 32,786.176 | 74,173.316 | 9,967.246 | |||||||
as a group | (2.67%) | ||||||||||||
K-7
Shares | Shares | Shares | Shares | Shares | Shares | |||||||||||||
Beneficially | Beneficially | Beneficially | Beneficially | Beneficially | Beneficially | |||||||||||||
Trustees | Owned | Owned | Owned | Owned | Owned | Owned | ||||||||||||
Putnam | Putnam | |||||||||||||||||
Putnam Ohio | Putnam OTC | Pennsylvania | Premier | Putnam Prime | ||||||||||||||
Tax Exempt | & Emerging | Tax Exempt | Income | Money | Putnam | |||||||||||||
Income Fund | Growth Fund | Income Fund | Trust | Market Fund | Research Fund | |||||||||||||
Class A | Class A | Class Y | Class A | Common | Class I | Class A | Class Y | |||||||||||
John A. Hill | 236.582 | 3,926.695 | — | 233.554 | 3,693.640 | 50,067,211.230^ | 5,636.398 | — | ||||||||||
(2.03%) | ||||||||||||||||||
Jameson Adkins Baxter | 179.752 | 3,818.078 | — | 186.671 | 496.412 | — | 418.083 | — | ||||||||||
Charles B. Curtis | 125.685 | 105.121 | — | 126.936 | 242.603 | — | 105.882 | — | ||||||||||
Myra R. Drucker | 109.498 | 100.000 | — | 109.345 | 215.100 | — | 100.873 | — | ||||||||||
Charles E. Haldeman, Jr. | 1,286.975 | 1,664.025 | — | 1,302.086 | 1,005.000 | — | 856.937 | — | ||||||||||
Paul L. Joskow | 162.056 | 129.574 | — | 163.644 | 201.176 | — | 5,546.414 | — | ||||||||||
Elizabeth T. Kennan | 110.735 | 1,141.113 | — | 110.619 | 292.060 | — | 146.694 | — | ||||||||||
Kenneth R. Leibler | 101.104 | 100.000 | — | 101.078 | 100.000 | — | 100.109 | — | ||||||||||
Robert E. Patterson | 110.686 | 1,453.803 | — | 110.615 | 803.529 | — | 145.779 | — | ||||||||||
George Putnam, III | 1,276.313 | 11,392.960 | — | 1,273.698 | 2,505.000 | — | 1,753.253 | — | ||||||||||
W. Thomas Stephens | 152.421 | 144.331 | — | 156.187 | 201.176 | — | 100.873 | — | ||||||||||
Richard B. Worley | 109.308 | 100.000 | — | 109.172 | 202.877 | — | 100.873 | — | ||||||||||
Trustees and Officers | 3,961.115 | 24,138.024 | 10,857.414 | 3,983.605 | 9,958.573 | 50,067,211.230^ | 15,012.168 | 7,020.033 | ||||||||||
as a group | (2.03%) | |||||||||||||||||
Shares | Shares | Shares | Shares | Shares | ||||||||||||||
Beneficially | Beneficially | Beneficially | Beneficially | Beneficially | ||||||||||||||
Trustees | Owned | Owned | Owned | Owned | Owned | |||||||||||||
Putnam | Putnam | Putnam | Putnam | Putnam | ||||||||||||||
RetirementReady | RetirementReady | RetirementReady | RetirementReady | RetirementReady | ||||||||||||||
2010 Fund | 2015 Fund | 2020 Fund | 2025 Fund | 2045 Fund | ||||||||||||||
Class A | Class A | Class A | Class A | Class A | ||||||||||||||
John A. Hill | — | — | — | — | — | |||||||||||||
Jameson Adkins Baxter | — | — | 360.422 | — | — | |||||||||||||
Charles B. Curtis | — | — | 112.471 | — | — | |||||||||||||
Myra R. Drucker | — | — | 1,194.810 | — | — | |||||||||||||
Charles E. Haldeman, Jr. | 199.250 | — | — | — | — | |||||||||||||
Paul L. Joskow | — | 173.076 | — | — | — | |||||||||||||
Elizabeth T. Kennan | — | — | — | — | 106.147 | |||||||||||||
Kenneth R. Leibler | — | 106.842 | — | — | — | |||||||||||||
Robert E. Patterson | — | — | 163.521 | — | — | |||||||||||||
George Putnam, III | — | — | — | 347.268 | — | |||||||||||||
W. Thomas Stephens | — | 113.435 | — | — | — | |||||||||||||
Richard B. Worley | — | — | — | — | — | |||||||||||||
Trustees and Officers | 199.250 | 393.353 | 1,831.224 | 347.268 | 106.147 | |||||||||||||
as a group | ||||||||||||||||||
^Reflects holdings as of 02/12/07. |
K-8
Shares | Shares | Shares | Shares | |||||||||
Beneficially | Beneficially | Beneficially | Beneficially | |||||||||
Trustees | Owned | Owned | Owned | Owned | ||||||||
Putnam | Putnam | |||||||||||
Tax Exempt | Tax Exempt | |||||||||||
Putnam Small Cap | Putnam Small Cap | Income | Money Market | |||||||||
Growth Fund | Value Fund | Fund | Fund | |||||||||
Class A | Class Y | Class A | Class Y | Class A | Class A | |||||||
John A. Hill | 3,244.878 | — | 22,526.691 | — | 586.373 | 3,840,684.230 | ||||||
(4.84%) | ||||||||||||
Jameson Adkins Baxter | 801.254 | — | 3,643.596 | — | 1,597.921 | 2,167.660 | ||||||
Charles B. Curtis | 609.294 | — | 175.356 | — | 129.943 | 1,615.540 | ||||||
Myra R. Drucker | 113.645 | — | 162.329 | — | 110.621 | 148,756.870 | ||||||
Charles E. Haldeman, Jr. | 848.486 | — | — | 1,110.407 | 1,345.180 | 10,778.420 | ||||||
Paul L. Joskow | 4,883.960 | — | 4,591.973 | — | 168.716 | 3,335.600 | ||||||
Elizabeth T. Kennan | 454.581 | — | 2,200.972 | — | 128.631 | 158.510 | ||||||
Kenneth R. Leibler | 106.092 | — | 120.604 | — | 101.140 | 100.910 | ||||||
Robert E. Patterson | 511.712 | — | 1,451.981 | — | 184.993 | 100.000 | ||||||
George Putnam, III | 5,766.333 | — | 2,579.539 | — | 1,779.841 | 10,451.820 | ||||||
W. Thomas Stephens | 113.645 | — | 162.329 | — | 158.390 | 181,638.740 | ||||||
Richard B. Worley | 113.645 | — | 162.329 | — | 110.373 | 105.890 | ||||||
Trustees and Officers | 21,502.617 | 9,742.964 | 37,777.699 | 19,951.538 | 6,402.122 | 4,502,847.100 | ||||||
as a group | (5.68%) | |||||||||||
Shares | Shares | Shares | Shares | Shares | ||||||||
Beneficially | Beneficially | Beneficially | Beneficially | Beneficially | ||||||||
Trustees | Owned | Owned | Owned | Owned | Owned | |||||||
Putnam | Putnam | Putnam | Putnam | Putnam | ||||||||
Tax-Free | Tax-Free | Tax Smart | U.S. Government | Utilities Growth | ||||||||
Health Care Fund | High Yield Fund | Equity Fund® | Income Trust | and Income Fund | ||||||||
Common | Class A | Class A | Class A | Class B | Class A | |||||||
John A. Hill | 219.176 | 402.179 | 7,985.816 | 728.436 | — | 3,399.876 | ||||||
Jameson Adkins Baxter | 582.481 | 1,276.060 | 1,239.863 | 197.129 | — | 649.544 | ||||||
Charles B. Curtis | 115.789 | 224.331 | 102.377 | 1,228.561 | 2,539.689 | 118.186 | ||||||
Myra R. Drucker | 105.244 | 187.262 | 100.163 | 108.946 | — | 104.935 | ||||||
Charles E. Haldeman, Jr. | 270.000 | 1,888.364 | 1,185.698 | 881.754 | — | 1,266.451 | ||||||
Paul L. Joskow | 100.000 | 279.554 | 5,400.929 | 173.315 | — | 997.481 | ||||||
Elizabeth T. Kennan | 108.110 | 189.648 | 106.867 | 184.771 | — | 116.304 | ||||||
Kenneth R. Leibler | 100.000 | 101.333 | 100.000 | 100.992 | — | 100.352 | ||||||
Robert E. Patterson | 100.000 | 189.753 | 2,239.580 | 1,424.248 | — | 718.950 | ||||||
George Putnam, III | 500.000 | 2,696.560 | 6,405.434 | 2,850.746 | — | 2,179.026 | ||||||
W. Thomas Stephens | 100.000 | 276.236 | 100.163 | 156.023 | — | 170.019 | ||||||
Richard B. Worley | 100.725 | 186.791 | 100.163 | 108.946 | — | 104.387 | ||||||
Trustees and Officers | 2,401.525 | 7,898.071 | 25,067.053 | 8,143.867 | 2,539.689 | 9,925.511 | ||||||
as a group | ||||||||||||
K-9
Shares | Shares | |||||
Beneficially | Beneficially | |||||
Trustees | Owned | Owned | ||||
Putnam Vista Fund | Putnam Voyager Fund | |||||
Class A | Class Y | Class A | Class Y | |||
John A. Hill | 48,265.800 | — | 23,528.436 | — | ||
Jameson Adkins Baxter | 14,111.419 | — | 8,201.140 | — | ||
Charles B. Curtis | 108.696 | — | 109.618 | — | ||
Myra R. Drucker | 2,234.927 | — | 100.707 | — | ||
Charles E. Haldeman, Jr. | 1,759.930 | — | 927.312 | — | ||
Paul L. Joskow | 2,016.190 | — | 3,248.819 | — | ||
Elizabeth T. Kennan | 5,005.941 | — | 299.547 | — | ||
Kenneth R. Leibler | 100.000 | — | 100.000 | — | ||
Robert E. Patterson | 1,479.233 | — | 5,000.471 | — | ||
George Putnam, III | 5,233.274 | — | 2,198.233 | — | ||
W. Thomas Stephens | 177.190 | — | 149.155 | — | ||
Richard B. Worley | 100.000 | — | 100.707 | — | ||
Trustees and Officers | 80,592.600 | 31,280.167 | 50,697.156 | 15,412.564 | ||
as a group | ||||||
Additional ownership information for funds that are series of Putnam Variable Trust
89As of February 9, 2007, except as shown below, the Trustees, and the Trustees and officers as a group, did not own variable annuity contracts or variable life insurance policies that invested in the funds that are series of Putnam Variable Trust.* This table shows the value of the Trustees’ indirect beneficial ownership interest in these funds.
Putnam Variable Trust | Paul L. Joskow | Robert E. Patterson | George Putnam, III | |||
Putnam VT American Government Income Fund | ||||||
Class IB | $1-$10,000 | — | — | |||
Putnam VT Capital Appreciation Fund | ||||||
Class IB | $1-$10,000 | — | — | |||
Putnam VT Capital Opportunities Fund | ||||||
Class IB | $1-$10,000 | — | — | |||
Putnam VT Discovery Growth Fund | ||||||
Class IB | $1-$10,000 | — | — | |||
Putnam VT Diversified Income Fund | ||||||
Class IB | $1-$10,000 | — | — | |||
Putnam VT Equity Income Fund | ||||||
Class IB | $1-$10,000 | — | — | |||
Putnam VT The George Putnam Fund of Boston | ||||||
Class IB | $1-$10,000 | — | — | |||
Putnam VT Global Asset Allocation Fund | ||||||
Class IA | — | — | $10,001-$50,000 | |||
Class IB | $1-$10,000 | — | — | |||
Putnam VT Global Equity Fund | ||||||
Class IB | $1-$10,000 | — | — | |||
Putnam VT Growth and Income Fund | ||||||
Class IB | $1-$10,000 | — | — | |||
Putnam VT Growth Opportunities Fund | ||||||
Class IB | $1-$10,000 | — | — | |||
Putnam VT High Yield Fund | ||||||
Class IA | — | $10,001-$50,000 | — | |||
Class IB | $1-$10,000 | — | — | |||
*As reflected in the tables above, Trustees own shares of the retail Putnam funds that are counterparts to the Putnam Variable Trust’s various portfolios.
K-10
Putnam Variable Trust | Paul L. Joskow | Robert E. Patterson | George Putnam, III |
Putnam VT Income Fund | |||
Class IB | $1-$10,000 | — | — |
Putnam VT International Equity Fund | |||
Class IB | $1-$10,000 | — | — |
Putnam VT International Growth and Income Fund | |||
Class IB | $1-$10,000 | — | — |
Putnam VT International New Opportunities Fund | |||
Class IB | $1-$10,000 | — | — |
Putnam VT Investors Fund | |||
Class IB | $1-$10,000 | — | — |
Putnam VT Mid Cap Value Fund | |||
Class IB | $1-$10,000 | — | — |
Putnam VT New Opportunities Fund | |||
Class IB | $1-$10,000 | — | — |
Putnam VT New Value Fund | |||
Class IB | $1-$10,000 | — | — |
Putnam VT OTC & Emerging Growth Fund | |||
Class IB | $1-$10,000 | — | — |
Putnam VT Research Fund | |||
Class IB | $1-$10,000 | — | — |
Putnam VT Small Cap Value Fund | |||
Class IB | $1-$10,000 | — | — |
Putnam VT Vista Fund | |||
Class IB | $1-$10,000 | — | — |
Putnam VT Voyager Fund | |||
Class IB | $1-$10,000 | — | — |
K-11
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90
APPENDIX A
Financial Highlights ofPutnam California Investment Grade Municipal Trust (April 30, 2006) and Putnam California Tax Exempt Income Fund (March 31, 2006)
91
Financial highlights
(For a common share outstanding throughout the period)
Putnam California Investment Grade Municipal Trust | |||||
PER-SHARE OPERATING PERFORMANCE | |||||
Year ended | |||||
4/30/06 | 4/30/05 | 4/30/04 | 4/30/03 | 4/30/02 | |
Net asset value, | |||||
beginning of period | |||||
(common shares) | $15.26 | $14.48 | $14.92 | $14.74 | $14.69 |
Investment operations: | |||||
Net investment income (a) | .71 | .74 | 80 | .84 | .95 |
Net realized and unrealized | |||||
gain (loss) on investments | (.33) | .83 | (.47) | .28 | .02 |
Total from investment operations | .38 | 1.57 | .33 | 1.12 | .97 |
Distributions to preferred shareholders: | |||||
From net investment income | (.08) | (.05) | (.03) | (.04) | (.06) |
From net realized gain | |||||
on investments | (.01) | — | — | (.01) | — (e) |
Total from investment operations | |||||
(applicable to common shares) | .29 | 1.52 | .30 | 1.07 | .91 |
Distributions to common shareholders: | |||||
From net investment income | (.65) | (.74) | (.74) | (.82) | (.83) |
From net realized | |||||
gain on investments | (.15) | — | — | (.07) | (.03) |
Total distributions | (.80) | (.74) | (.74) | (.89) | (.86) |
Increase from shares repurchased | .03 | — | — | — | — |
Net asset value, end of period | |||||
(common shares) | $14.78 | $15.26 | $14.48 | $14.92 | $14.74 |
Market price, end of period | |||||
(common shares) | $13.14 | $13.45 | $12.82 | $13.44 | $13.82 |
Total return at market price | |||||
(common shares) (%)(b) | 3.59 | 10.85 | 0.81 | 3.73 | 5.51 |
92
Putnam California Investment Grade Municipal Trust (continued)
RATIOS AND SUPPLEMENTAL DATA | |||||
Net assets, end of period | |||||
(common shares) (in thousands) | $66,798 | $70,287 | $66,714 | $68,715 | $67,887 |
Ratio of expenses to | |||||
average net assets (%)(c,d) | 1.25 | 1.21 | 1.16 | 1.20 | 1.20 |
Ratio of net investment income | |||||
to average net assets (%)(c) | 4.13 | 4.60 | 5.11 | 5.41 | 5.97 |
Portfolio turnover rate (%) | 11.57 | 49.71 | 20.89 | 22.00 | 11.82 |
(a)Per share net investment income has been determined on the basis of the weighted average number of common shares outstanding during the period.
(b)Total return assumes dividend reinvestment.
(c)Ratio reflects net assets available to common shares only; net investment income ratio also reflects reduction for dividend payments to preferred shareholders.
(d)Includes amounts paid through expense offset arrangements.
(e)Distributions amounted to less than $0.01 per share.
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Financial highlights(For a common share outstanding throughout the period)
INVESTMENT OPERATIONS: | LESS DISTRIBUTIONS: | |||||
Net | ||||||
Net asset | realized and | Total | From | From | ||
value, | Net | unrealized | from | net | net realized | |
beginning | investment | gain (loss) on | investment | investment | gain on | |
Period ended | of period | income (loss)(a) | investments | operations | income | investments |
CLASS A | ||||||
March 31, 2006** | $8.43 | .17 | (.10) | .07 | (.17) | (.19) |
September 30, 2005 | 8.57 | .36 | (.02) | .34 | (.38) | (.10) |
September 30, 2004 | 8.62 | .38 | .01 | .39 | (.40) | (.04) |
September 30, 2003 | 8.84 | .39 | (.17) | .22 | (.39) | (.05) |
September 30, 2002 | 8.71 | .41 | .15 | .56 | (.41) | (.02) |
September 30, 2001 | 8.35 | .42 | .36 | .78 | (.42) | —(c) |
CLASS B | ||||||
March 31, 2006** | $8.42 | .14 | (.08) | .06 | (.15) | (.19) |
September 30, 2005 | 8.56 | .30 | (.02) | .28 | (.32) | (.10) |
September 30, 2004 | 8.62 | .33 | (.01) | .32 | (.34) | (.04) |
September 30, 2003 | 8.83 | .33 | (.16) | .17 | (.33) | (.05) |
September 30, 2002 | 8.70 | .36 | .15 | .51 | (.36) | (.02) |
September 30, 2001 | 8.34 | .36 | .37 | .73 | (.37) | —(c) |
CLASS C | ||||||
March 31, 2006** | $8.46 | .14 | (.10) | .04 | (.14) | (.19) |
September 30, 2005 | 8.60 | .29 | (.02) | .27 | (.31) | (.10) |
September 30, 2004 | 8.65 | .34 | (.02) | .32 | (.33) | (.04) |
September 30, 2003 | 8.87 | .32 | (.17) | .15 | (.32) | (.05) |
September 30, 2002 | 8.74 | .35 | .15 | .50 | (.35) | (.02) |
September 30, 2001 | 8.37 | .35 | .37 | .72 | (.35) | —(c) |
CLASS M | ||||||
March 31, 2006** | $8.41 | .16 | (.10) | .06 | (.16) | (.19) |
September 30, 2005 | 8.55 | .33 | (.02) | .31 | (.35) | (.10) |
September 30, 2004 | 8.61 | .35 | —(c) | .35 | (.37) | (.04) |
September 30, 2003 | 8.82 | .36 | (.16) | .20 | (.36) | (.05) |
September 30, 2002 | 8.69 | .39 | .15 | .54 | (.39) | (.02) |
September 30, 2001 | 8.33 | .39 | .37 | .76 | (.40) | —(c) |
*Not annualized.
**Unaudited.
(a)Total return assumes dividend reinvestment and does not reflect the effect of sales charges.
(b)Includes amounts paid through expense offset arrangements.
(c)Amount represents less than $0.01 per share.
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RATIOS AND SUPPLEMENTAL DATA: | |||||||
Total | Ratio of net | ||||||
Net asset | return | Net | Ratio of | investment | |||
value, | at net | assets, | expenses to | income (loss) | Portfolio | ||
Total | Redemption | end | asset | end of period | average net | to average | turnover |
distributions | fees | of period | value (%)(a) | (in thousands) | assets (%)(b) | net assets (%) | (%) |
(.36) | —(c) | $8.14 | .86* | $1,966,490 | .37* | 2.08* | 3.05* |
(.48) | —(c) | 8.43 | 4.08 | 2,057,513 | .75 | 4.20 | 21.15 |
(.44) | — | 8.57 | 4.60 | 2,144,817 | .79 | 4.49 | 13.01 |
(.44) | — | 8.62 | 2.64 | 2,540,224 | .76 | 4.52 | 22.39 |
(.43) | — | 8.84 | 6.69 | 2,739,618 | .75 | 4.82 | 6.50 |
(.42) | — | 8.71 | 9.57 | 2,631,430 | .75 | 4.91 | 9.53 |
(.34) | —(c) | $8.14 | .67* | $147,551 | .69* | 1.76* | 3.05* |
(.42) | —(c) | 8.42 | 3.40 | 178,443 | 1.40 | 3.55 | 21.15 |
(.38) | — | 8.56 | 3.81 | 241,841 | 1.44 | 3.84 | 13.01 |
(.38) | — | 8.62 | 2.09 | 352,861 | 1.41 | 3.87 | 22.39 |
(.38) | — | 8.83 | 6.00 | 420,977 | 1.40 | 4.17 | 6.50 |
(.37) | — | 8.70 | 8.87 | 497,335 | 1.40 | 4.25 | 9.53 |
(.33) | —(c) | $8.17 | .44* | $24,131 | .77* | 1.68* | 3.05* |
(.41) | —(c) | 8.46 | 3.21 | 24,333 | 1.55 | 3.40 | 21.15 |
(.37) | — | 8.60 | 3.83 | 24,313 | 1.59 | 3.69 | 13.01 |
(.37) | — | 8.65 | 1.83 | 32,171 | 1.56 | 3.72 | 22.39 |
(.37) | — | 8.87 | 5.83 | 30,974 | 1.55 | 4.00 | 6.50 |
(.35) | — | 8.74 | 8.81 | 14,913 | 1.55 | 4.16 | 9.53 |
(.35) | —(c) | $8.12 | .70* | $5,847 | .52* | 1.93* | 3.05* |
(.45) | —(c) | 8.41 | 3.76 | 6,279 | 1.05 | 3.90 | 21.15 |
(.41) | — | 8.55 | 4.17 | 6,774 | 1.09 | 4.19 | 13.01 |
(.41) | — | 8.61 | 2.45 | 9,009 | 1.06 | 4.21 | 22.39 |
(.41) | — | 8.82 | 6.38 | 15,668 | 1.05 | 4.51 | 6.50 |
(.40) | — | 8.69 | 9.25 | 13,069 | 1.05 | 4.60 | 9.53 |
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APPENDIX B
Financial Highlights ofPutnam New York Investment Grade Municipal Trust (April 30, 2006) and Putnam New York Tax Exempt Income Fund (May 31, 2006)
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Financial highlights
(For a common share outstanding throughout the period)
Putnam New York Investment Grade Municipal Trust
PER-SHARE OPERATING PERFORMANCE | |||||
Year ended | |||||
4/30/06 | 4/30/05 | 4/30/04 | 4/30/03 | 4/30/02 | |
Net asset value, | |||||
beginning of period | |||||
(common shares) | $13.75 | $13.18 | $13.37 | $13.32 | $13.45 |
Investment operations: | |||||
Net investment income (a) | .61 | .64 | .72 | .83 | .88 |
Net realized and unrealized | |||||
gain (loss) on investments | (.31) | .64 | (.18) | (.02) | (.23) |
Total from investment operations | .30 | 1.28 | .54 | .81 | .65 |
Distributions to preferred shareholders: | |||||
From net investment income | (.09) | (.06) | (.03) | (.04) | (.07) |
Total from investment operations | |||||
(applicable to common shareholders) | .21 | 1.22 | .51 | .77 | .58 |
Distributions to common shareholders: | |||||
From net investment income | (.53) | (.65) | (.70) | (.72) | (.71) |
Total distributions | (.53) | (.65) | (.70) | (.72) | (.71) |
Increase from shares repurchased | .04 | — | — | — | — |
Net asset value, end of period | |||||
(common shares) | $13.47 | $13.75 | $13.18 | $13.37 | $13.32 |
Market price, end of period | |||||
(common shares) | $11.93 | $11.81 | $11.35 | $11.99 | $12.12 |
Total return at market price (%) | |||||
(common shares)(b) | 5.57 | 9.90 | 0.26 | 4.88 | 2.96 |
RATIOS AND SUPPLEMENTAL DATA | |||||
Net assets, end of period | |||||
(common shares) | |||||
(in thousands) | $37,452 | $39,144 | $37,534 | $38,063 | $37,917 |
Ratio of expenses to | |||||
average net assets (%)(c,d) | 1.47 | 1.39 | 1.33 | 1.36 | 1.35 |
Ratio of net investment income | |||||
to average net assets (%)(c) | 3.79 | 4.35 | 5.06 | 5.84 | 5.96 |
Portfolio turnover rate (%) | 14.79 | 35.82 | 21.43 | 35.93 | 25.16 |
(a)Per share net investment income has been determined on the basis of the weighted average number of shares outstanding during the period.
(b)Total return assumes dividend reinvestment.
(c)Ratios reflect net assets available to common shares only; net investment income ratio also reflects reduction for distributions to preferred shareholders.
(d)Includes amounts paid through expense offset arrangements.
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Financial highlights(For a common share outstanding throughout the period)
Putnam New York Tax Exempt Income Fund
INVESTMENT OPERATIONS: | LESS DISTRIBUTIONS: | |||||
Net | ||||||
Net asset | realized and | Total | From | From | ||
value, | Net | unrealized | from | net | net realized | |
beginning | investment | gain (loss) on | investment | investment | gain on | |
Period ended | of period | income (loss)(a) | investments | operations | income | investments |
CLASS A | ||||||
May 31, 2006** | $8.70 | .18 | (.05) | .13 | (.18) | (.09) |
November 30, 2005 | 8.84 | .35 | (.05) | .30 | (.35) | (.09) |
November 30, 2004 | 8.93 | .37(c) | (.10) | .27 | (.36) | — |
November 30, 2003 | 8.87 | .38 | .16 | .54 | (.39) | (.09) |
November 30, 2002 | 8.79 | .40 | .07 | .47 | (.39) | — |
November 30, 2001 | 8.52 | .42 | .27 | .69 | (.42) | — |
CLASS B | ||||||
May 31, 2006** | $8.69 | .15 | (.05) | .10 | (.15) | (.09) |
November 30, 2005 | 8.83 | .31 | (.06) | .25 | (.30) | (.09) |
November 30, 2004 | 8.91 | .31(c) | (.09) | .22 | (.30) | — |
November 30, 2003 | 8.85 | .32 | .17 | .49 | (.34) | (.09) |
November 30, 2002 | 8.77 | .34 | .07 | .41 | (.33) | — |
November 30, 2001 | 8.51 | .37 | .25 | .62 | (.36) | — |
CLASS C | ||||||
May 31, 2006** | $8.70 | .15 | (.05) | .10 | (.15) | (.09) |
November 30, 2005 | 8.84 | .28 | (.06) | .22 | (.27) | (.09) |
November 30, 2004 | 8.93 | .30(c) | (.10) | .20 | (.29) | — |
November 30, 2003 | 8.86 | .31 | .17 | .48 | (.32) | (.09) |
November 30, 2002 | 8.79 | .33 | .06 | .39 | (.32) | — |
November 30, 2001 | 8.53 | .35 | .26 | .61 | (.35) | — |
CLASS M | ||||||
May 31, 2006** | $8.71 | .17 | (.05) | .12 | (.17) | (.09) |
November 30, 2005 | 8.85 | .32 | (.05) | .27 | (.32) | (.09) |
November 30, 2004 | 8.94 | .34(c) | (.10) | .24 | (.33) | — |
November 30, 2003 | 8.87 | .35 | .18 | .53 | (.37) | (.09) |
November 30, 2002 | 8.79 | .37 | .07 | .44 | (.36) | — |
November 30, 2001 | 8.53 | .40 | .26 | .66 | (.40) | — |
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RATIOS AND SUPPLEMENTAL DATA: | |||||||
Total | Ratio of net | ||||||
Net asset | return | Net | Ratio of | investment | |||
value, | at net | assets, | expenses to | income (loss) | Portfolio | ||
Total | Redemption | end | asset | end of period | average net | to average | turnover |
distributions | fees | of period | value (%)(a) | (in thousands) | assets (%)(b) | net assets (%) | (%) |
(.27) | —(d) | $8.56 | 1.46* | $1,102,905 | .40* | 2.08* | 3.48* |
(.44) | —(d) | 8.70 | 3.36 | 1,148,135 | .79 | 3.98 | 12.91 |
(.36) | —(d) | 8.84 | 3.08 | 1,222,953 | .82(c) | 4.14(c) | 22.57 |
(.48) | — | 8.93 | 6.25 | 1,336,936 | .82 | 4.23 | 8.08(e) |
(.39) | — | 8.87 | 5.44 | 1,322,541 | .82 | 4.50 | 17.90 |
(.42) | — | 8.79 | 8.24 | 1,362,488 | .81 | 4.80 | 18.63 |
(.24) | —(d) | $8.55 | 1.12* | $70,377 | .72* | 1.76* | 3.48* |
(.39) | —(d) | 8.69 | 2.85 | 83,500 | 1.44 | 3.33 | 12.91 |
(.30) | —(d) | 8.83 | 2.50 | 110,813 | 1.47(c) | 3.50(c) | 22.57 |
(.43) | — | 8.91 | 5.57 | 158,081 | 1.47 | 3.59 | 8.08(e) |
(.33) | — | 8.85 | 4.75 | 119,251 | 1.47 | 3.84 | 17.90 |
(.36) | — | 8.77 | 7.41 | 117,722 | 1.46 | 4.18 | 18.63 |
(.24) | —(d) | $8.56 | 1.08* | $10,536 | .79* | 1.68* | 3.48* |
(.36) | —(d) | 8.70 | 2.54 | 10,472 | 1.59 | 3.18 | 12.91 |
(.29) | —(d) | 8.84 | 2.27 | 10,411 | 1.62(c) | 3.34(c) | 22.57 |
(.41) | — | 8.93 | 5.54 | 10,909 | 1.62 | 3.43 | 8.08(e) |
(.32) | — | 8.86 | 4.48 | 5,885 | 1.62 | 3.69 | 17.90 |
(.35) | — | 8.79 | 7.25 | 5,145 | 1.61 | 3.93 | 18.63 |
(.26) | —(d) | $8.57 | 1.29* | $2,620 | .54* | 1.93* | 3.48* |
(.41) | —(d) | 8.71 | 3.06 | 2,780 | 1.09 | 3.68 | 12.91 |
(.33) | —(d) | 8.85 | 2.77 | 3,318 | 1.12(c) | 3.84(c) | 22.57 |
(.46) | — | 8.94 | 6.06 | 3,876 | 1.12 | 3.94 | 8.08(e) |
(.36) | — | 8.87 | 5.12 | 2,343 | 1.12 | 4.17 | 17.90 |
(.40) | — | 8.79 | 7.78 | 1,793 | 1.11 | 4.51 | 18.63 |
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*Not annualized.
**Unaudited.
(a)Total return assumes dividend reinvestment and does not reflect the effect of sales charges.
(b)Includes amounts paid through expense offset arrangements.
(c)Reflects an involuntary contractual expense limitation in effect during the period. As a result of such limitation, the expenses of each class, as a percentage of its net assets, reflect a reduction of the following amounts:
(d)Amount represents less than $0.01 per share.
(e)Portfolio turnover excludes the impact of assets received from the acquisition of Putnam New York Tax Exempt Opportunities Fund.
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EXHIBIT A
The Putnam funds
AUDIT AND COMPLIANCE COMMITTEE CHARTER January 2006
Purpose.The purpose of the Audit and Compliance Committee (the “Committee”) is to oversee and assist Trustee oversight of: the integrity of the Funds’ financial statements, including overseeing accounting and financial reporting processes of the Funds and the audits of the Funds’ financial statements; the Funds’ compliance with legal and regulatory requirements; the independent auditors’ qualifications and independence; and the performance of the Funds’ internal audit function, if any, and independent auditors.
The Committee is directly responsible for the appointment, terms of engagement, termination, compensation and oversight of the work of the independent auditors employed by the Funds (including resolution of disagreements between management and the independent auditors regarding financial reporting), and the independent auditors shall report directly to the Committee. The Committee is also directly responsible for preparing an audit committee report required to be included in the annual proxy statement for the closed-end Funds. The Board of Trustees (the “Board”) and the Funds’ shareholders shall have such rights to approve, ratify and replace the Funds’ independent auditors as are required by applicable law.
Composition.The Committee will be comprised exclusively of “independent” Trustees, as such term is interpreted for purposes of Rule 10A-3(b)(1) of the Securities Exchange Act of 1934, as amended, and the listing standards of each exchange on which shares of one or more of The Putnam Funds are traded (each an “Exchange”). In addition, none of the Committee’s members will be “interested persons” of the Funds as that term is defined under the Investment Company Act of 1940, as amended. The Committee shall have at least three members, who shall collectively satisfy the independence, financial sophistication and finan-cial literacy listing standards of each Exchange, as financial literacy is interpreted by the Board. Committee members may serve on the audit committee of more than three listed companies, provided that the Board determines that such simultaneous service would not impair the ability of the member to serve effectively on the Committee.
101
Assistance.The Committee may seek the assistance of the staff of the Office of the Trustees, the Funds’ independent auditors and counsel, management and other parties as it may deem appropriate.
Funding.The Funds will provide the necessary funding as determined by the Committee (i) to compensate the Funds’ independent auditors and any advisers employed by or at the direction of the Committee and (ii) to pay ordinary administrative expenses of the Committee that are necessary or appropriate in carrying out its duties.
Specific Duties of Committee.The duties of the Committee include:
* Obtaining and reviewing, at least annually, a formal, written report by the independent auditors describing: the auditors’ internal quality-control procedures; any material issues raised by the most recent internal quality-control review, or peer review, of the auditors, or by any inquiry or investigation by governmental or professional authorities, within the preceding five years, respecting one or more independent audits carried out by the auditors, and any steps taken to deal with any such issues; and (to assess the auditors’ independence), consistent with Independent Standards Board Standard 1, all relationships between the independent auditors, management and the Funds;
* Actively engaging in a dialogue with the independent auditors with respect to any disclosed relationships or services that may impact the objectivity and independence of the independent auditors and recommending that the Trustees take appropriate action in response to the independent auditors’ report to satisfy themselves of the independent auditors’ independence;
* Reviewing the arrangements for and scope of the annual audit and any special audits;
* Conducting meetings at least quarterly;
* Evaluating Committee performance at least annually;
* For Funds whose shares are traded on an Exchange, discussing the annual audited financial statements and semiannual or any other periodic finan-cial statements with Fund management and the independent auditors, including the Funds’ disclosures under management’s discussion of Fund performance;
* Discussing with management, guidelines and policies with respect to risk assessment and risk management;
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* Meeting separately and periodically with management, with internal auditors (or other personnel responsible for the internal audit function, if any) and with the independent auditors;
* Reviewing with the independent auditors any audit problems or difficul-ties and management’s response to such issues, and to resolve any disagreements between management and the independent auditors;
* Setting clear hiring policies by the Funds for employees or former employees of the independent auditors;
* Establishing procedures for (A) the receipt, retention and treatment of complaints received by the Funds regarding accounting, internal accounting controls or auditing matters, and (B) confidential, anonymous submissions regarding questionable accounting or auditing matters;
* Reviewing, at least annually, (A) major issues regarding accounting principles and financial statement presentations, including any significant changes in the Funds’ selection or application of accounting principles, and major issues as to the adequacy of the Funds’ internal controls and any special audit steps adopted in light of material control deficiencies; (B) analyses prepared by management and/or the independent auditors setting forth significant financial reporting issues and judgments made in connection with the preparation of the financial statements, including analyses of the effects of alternative GAAP methods on the financial statements; (C) the effect of regulatory and accounting initiatives, as well as off-balance sheet structures, on the financial statements of the Funds; and (D) earnings press releases (paying particular attention to any use of “pro forma,” or “adjusted” non-GAAP, information), if any, as well as financial information and earnings guidance provided to analysts and rating agencies;
* Reviewing scope and adequacy of audits;
* Reporting regularly to the Board of Trustees to review any issues that arise with respect to the quality or integrity of the Funds’ financial statements, the Funds’ compliance with legal or regulatory requirements, the performance, qualifications and independence of the Funds’ independent auditors and the performance of the Funds’ internal audit function (if any);
* Pre-approving any work performed by the Funds’ auditors, as required by applicable law or the rules of any Exchange;
* Reviewing matters relating to the Funds’ Code of Ethics and Putnam Investments’ Code of Ethics;
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* Reviewing compliance matters identified to the Committee;
* Reassessing annually the adequacy of this Charter and recommending any proposed changes to the full Board of Trustees; and
* Performing such other functions and having such powers as may be necessary and appropriate in the efficient and lawful discharge of the powers provided in this Charter.
Role and Responsibilities of the Committee.The function of the Committee is oversight; it is management’s responsibility to maintain appropriate systems for accounting and internal control over financial reporting, and the independent auditors’ responsibility to plan and carry out a proper audit. Specifically, a Fund’s management is responsible for: (1) the preparation, presentation and integrity of the Fund’s financial statements; (2) the maintenance of appropriate accounting and financial reporting principles and policies; and (3) the maintenance of internal control over financial reporting and other procedures designed to assure compliance with accounting standards and related laws and regulations. The independent auditors are responsible for planning and carrying out an audit consistent with applicable legal and professional standards and the terms of their engagement letter. Nothing in this Charter shall be construed to reduce the responsibilities or liabilities of a Fund’s service providers, including the independent auditors.
The review of a Fund’s financial statements by the Committee is not an audit, nor does the Committee’s review substitute for the responsibilities of the Funds’ management for preparing, or the independent auditors for auditing, the financial statements. Members of the Committee are not full-time employees of the Funds and, in serving on the Committee, are not, and do not hold themselves out to be, acting as accountants or auditors. As such, it is not the duty or responsibility of the Committee or its members to conduct “field work” or other types of auditing or accounting reviews or procedures.
In discharging their duties, the members of the Committee are entitled to rely on information, opinions, reports or statements, including finan-cial statements and other financial data, if prepared or presented by: (1) one or more officers of the Funds whom the Committee member reasonably believes to be reliable and competent in the matters presented; (2) legal counsel, public accountants or other persons as to matters the Committee member reasonably believes are within the person’s professional or expert competence; or (3) a Board committee of which the Committee member is not a member.
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EXHIBIT B
Litigation
1. Multi-District Litigation
From November 2003 through March 2004, several lawsuits were filed in different states alleging that the Putnam Trustees and other Putnam-related defendants permitted, failed to disclose and/or failed to prevent market timing, short-term trading and/or late trading in the Putnam Funds. The Plaintiffs in the various cases asserted different combinations of the following claims: violations of § 36 of the 1940 Act; § 206 of the Investment Advisers Act of 1940; § 10(b) of the 1934 Act and Rule 10b-5; § 20(a) of the 1934 Act; breach of fiduciary duty; aiding and abetting breach of fiduciary duty; civil conspiracy; abuse of control; gross mismanagement; waste of corporate assets; and unjust enrichment. The plaintiffs generally sought injunctive relief including removal of the current Trustees and fund managers, disgorgement of profits, monetary damages, punitive damages, and attorneys’ fees and costs.
The actions described above were transferred to the United States District Court for the District of Maryland and consolidated for pre-trial proceedings in the Special Multi-District Litigation (“MDL”) Proceeding (In re: Mutual Funds Litigation, 04-MD-15863) created for actions involving market timing issues against mutual fund complexes. Two consolidated amended derivative complaints have been filed in the Putnam Subtrack of the MDL, and the complaint involving the Putnam Trustees and the Putnam Funds is described as follows:
The lead plaintiff named below alleged that the defendants engaged in, permitted, and/or failed to prevent market timing and late trading in the Putnam Funds. The plaintiffs claimed violations of §§ 36, 47 and 48 of the 1940 Act, violations of §§ 206 and 215 of the Investment Advisers Act of 1940, breach of fiduciary duty, breach of contract, aiding and abetting breach of fiduciary duty, unjust enrichment, interference with contract and civil conspiracy. The plaintiffs sought, among other things, injunctive relief including removal of the current Trustees, removal of the adviser and distributor defendants, rescission of the management and
105
other contracts, disgorgement of profits, monetary damages, punitive damages and attorneys’ fees and costs. In 2006, the Court dismissed all of the plaintiffs’ claims except the claim asserted under §36 of the 1940 Act. Furthermore, the plaintiffs’ claims against the Trustees of the Putnam Funds have been dismissed.
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2. State Court Case
The plaintiff named below alleges that defendants failed to prevent the disclosure of confidential information concerning the identity of securities, the practice of late trading by selected investors, time-trading by selected investors and insider trading by Company Directors, officers and or employees. The plaintiff claims breach of fiduciary duty.
1 The “Putnam Trustees” include current Trustees Jameson Adkins Baxter, Charles B. Curtis, John A Hill, Paul L. Joskow, Elizabeth T. Kennan, John H. Mullin, III, Robert E. Patterson, George Putnam, III and W. Thomas Stephens, and former Trustees Ronald J. Jackson, Lawrence J. Lasser, W. Nicholas Thorndike and A.J.C. Smith.
2 “Putnam Management” includes Putnam Investment Trust, Putnam Investment Management, LLC, Putnam, LLC, and/or Marsh & McLennan Companies, Inc.
3 “Putnam Funds” includes any and/or all registered investment companies managed by Putnam Management.
4 The “Marsh Directors” are Charles Davis, Lewis Bernard, Peter Coster, Robert Ebruru, Oscar Fanjul, Ray Groves, Stephen Hardis, Gwendolyn King, Lord Lang of Monkton, David Olsen, Morton Shapiro, Adele Simmons and A.J.C. Smith.
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The Putnam funds
One Post Office Square
Boston, Massachusetts 02109Toll-free 1-800-225-1581
Putnam Retail Management
www.putnam.com
237348 8/06242548 3/07
Putnam California Investment Grade Municipal TrustThe proxy ballot
To vote by mail | To vote by telephone | To vote on the | |
Read the proxy statement and | Read the proxy statement and | ||
Read the proxy statement. | |||
Check the appropriate | |||
on the reverse side. | Go tohttp://www.proxyweb.com | ||
Follow the automated | |||
Sign and date the proxy ballot. | |||
Return the proxy ballot in the | |||
no need for you to return | Follow the instructions on | ||
envelope provided. | your proxy ballot. | the site. | |
There is no need for you to | |||
return your proxy ballot. | |||
By signing below, you as a Putnam fund shareholder appoint Trustees John A. Hill and Robert E. Patterson, and each of them separately, with power of substitution to each, to be your proxies. You are empowering them to vote your Putnam fund shares on your behalf at the meeting of the shareholders of Putnam California Investment Grade Municipal Trust.the above-referenced fund. The meeting will take place on October 30, 2006May 15, 2007 at 11:00 a.m., Boston time, and may be adjourned to later times or dates.Your vote is being solicited on behalf of the Trustees.When you complete and sign the proxy ballot, the Trusteesyour proxies will vote exactly as you have indicated on the other side of this card.If you simply sign the proxy ballot, or don’t vote on athe specific proposal, your shares will be automatically voted as the Trustees recommend. The TrusteesYour proxies are also authorized to vote at their discretion on any other matter that arises at the meeting or any adjournment of the meeting.
each owner should sign. When signing as executor, administrator, attorney, trustee, guardian, or as custodian for a minor, please give your full title as such. If you are the full corporate name and indicate the signer’s office. If you are a partner, sign in the partnership name. |
Please place an X in the appropriate box using black or blue ink or number 2 pencil. | ||||||
Proposals | Please do not use a fine point pen. | |||||
To vote on all Proposals, as the Trustees recommend, mark this box. (No other vote is necessary.) | 0 | |||||
THE TRUSTEES RECOMMEND A VOTE FOR ALL NOMINEES. | ||||||
1 . Proposal to elect All Nominees: | ||||||
F O R | WITHHOLD FOR ALL | |||||
The nominees for Trustees are: | 01 J.A. Baxter | 07 G. Putnam, III | ALL | ALL | EXCEPT | |
02 C.B. Curtis | 08 W.T. Stephens | |||||
03 M.R. Drucker | 09 R.B. Worley | |||||
04 C.E. Haldeman, Jr. | 0 | 0 | 0 | |||
05 P.L. Joskow | ||||||
06 E.T. Kennan | ||||||
To withhold authority to vote for one or more of the nominees, check the“For All Except”box and write | ||||||
the name(s) or number(s) of the nominee(s) below: | ||||||
THE TRUSTEES RECOMMEND A VOTE AGAINST PROPOSAL 3. | FOR | AGAINST | ABSTAIN | |||
3. Shareholder proposal requesting the Trustees to merge the fund into Putnam California Tax Exempt Income | 0 | 0 | 0 | |||
Fund, an open-end fund, or otherwise permit shareholders to realize the net asset value of their shares. | ||||||
If you have questions on the proposals, please call 1-800-225-1581. | Please sign and date the other side of this card. | |||||
Please place an X in the appropriate box using black or blue ink or | ||||
Proposal | number 2 pencil. Please do not use a fine point pen. | |||
If you do not mark the proposal, your shares will be voted as the Trustees recommend. | ||||
THE TRUSTEES RECOMMEND A VOTEFORTHIS PROPOSAL | ||||
FOR | AGAINST | ABSTAIN | ||
1. Approving a new management contract for your fund. | 0 | 0 | 0 |
If you have any questions on the proposal, please call 1-866-905-2396. Please sign and date the other side of this card.
Putnam California Investment Grade Municipal TrustezVoteSMConsolidated Proxy Ballot
By signing below, you as a Putnam fund shareholder appoint Trustees John A. Hill and Robert E. Patterson, and each of them separately, with power of substitution to each, to be your proxies. You are empowering them to vote your Putnam fund shares on your behalf at thea meeting of the shareholders of the Putnam California Investment Grade Municipal Trust.funds. The meeting will take place on October 30, 2006May 15, 2007 at 11:00 a.m., Boston time, and may be adjourned to later times or dates.Your vote is being solicited on behalf of the Trustees.When you complete and sign the proxy ballot, the Trusteesyour proxies will vote exactly as you have indicated on the other side of this card.If you simply sign the proxy ballot, or don’t vote on athe specific proposal, your shares will be automatically voted as the Trustees recommend. The TrusteesYour proxies are also authorized to vote at their discretion on any other matter that arises at the meeting or any adjournment of the meeting.