Prospectus
December 30, 1999
Putnam New Century Growth Fund
Class A, B, C and M
Investment Category: Growth
This prospectus explains what you should know about this mutual fund
before you invest. Please read it carefully.
Putnam Investment Management, Inc. (Putnam Management), which has managed
mutual funds since 1937, manages the fund.
These securities have not been approved or disapproved by the Securities
and Exchange Commission nor has the Commission passed upon the accuracy or
adequacy of this prospectus. Any statement to the contrary is a crime.
CONTENTS
2 Fund summary
2 Goal
2 Main investment strategies
2 Main risks
2 Performance information
3 Fees and expenses
4 What are the fund's main invest-
ment strategies and related risks?
6 Who manages the fund?
7 How does the fund price its shares?
7 How do I buy fund shares?
11 How do I sell fund shares?
12 How do I exchange fund shares?
13 Fund distributions and taxes
14 Financial highlights
[LOGO OMITTED: BOSTON * LONDON * TOKYO]
Fund summary
GOAL
The fund seeks capital appreciation.
MAIN INVESTMENT STRATEGIES -- GROWTH STOCKS
We invest mainly in common stocks of U.S. companies, with a focus on growth
stocks. Growth stocks are issued by companies whose earnings we believe are
likely to grow faster than the economy as a whole. Growth in a company's
earnings may lead to an increase in the price of its stock.
We invest in companies of all sizes.
MAIN RISKS
The main risks that could adversely affect the value of the fund's shares
and the total return on your investment include:
* The risk that the stock price of one or more of the companies in the
fund's portfolio will fall, or will fail to rise. Many factors can
adversely affect a stock's performance, including both general financial
market conditions and factors related to a specific company or industry.
This risk is generally greater for small and midsized companies, which tend
to be more vulnerable to adverse developments.
* The risk that movements in financial markets will adversely affect the
price of the fund's investments, regardless of how well the companies in
which we invest perform. The market as a whole may not favor the types of
investments we make.
You can lose money by investing in the fund. The fund may not achieve its
goal, and is not intended as a complete investment program. An investment
in the fund is not a deposit in a bank and is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
PERFORMANCE INFORMATION
Performance information for the fund has not been included since this fund
has not yet been in operation for a full calendar year.
FEES AND EXPENSES
This table summarizes the fees and expenses you may pay if you invest in
the fund. Expenses represent estimates for the fund's current fiscal year
which ends on June 30, 2000.
Shareholder Fees (fees paid directly from your investment)
- -------------------------------------------------------------------------------
Class A Class B Class C Class M
- -------------------------------------------------------------------------------
Maximum Sales Charge
(Load) Imposed on
Purchases (as a percentage
of the offering price) 5.75% NONE NONE 3.50%
Maximum Deferred Sales Charge
(Load) (as a percentage of the original
purchase price or redemption
proceeds, whichever is lower) NONE* 5.00% 1.00% NONE
- -------------------------------------------------------------------------------
Annual Fund Operating Expenses**
(expenses that are deducted from fund assets)
- -------------------------------------------------------------------------------
Total
Annual Fund Expense
Management Distribution Other Operating Reim- Net
Fees (12b-1) Fees Expenses Expenses bursement Expenses
- -------------------------------------------------------------------------------
Class A 0.70% 0.25% 1.00% 1.95% (0.70)% 1.25%
Class B 0.70% 1.00% 1.00% 2.70% (0.70)% 2.00%
Class C 0.70% 1.00% 1.00% 2.70% (0.70)% 2.00%
Class M 0.70% 0.75% 1.00% 2.45% (0.70)% 1.75%
- -------------------------------------------------------------------------------
* A deferred sales charge of up to 1% may be imposed on certain redemptions
of class A shares bought without an initial sales charge.
** Reflects Putnam Management's contractual obligation to limit fund expenses
through June 30, 2000.
EXAMPLE
The example translates the expenses shown in the preceding table into
dollar amounts. By doing this, you can more easily compare the cost of
investing in the fund to the cost of investing in other mutual funds. The
example makes certain assumptions. It assumes that you invest $10,000 in
the fund for the time periods shown and then, except as shown for class B
and class C shares, redeem all your shares at the end of those periods. It
also assumes a 5% return on your investment each year and that the fund's
operating expenses remain the same. The example is hypothetical; your
actual costs and returns may be higher or lower.
- -------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- -------------------------------------------------------------------------
Class A $695 $1,088 $1,506 $2,666
Class B $703 $1,072 $1,568 $2,799*
Class B
(no redemption) $203 $ 772 $1,368 $2,799*
Class C $303 $ 772 $1,368 $2,981
Class C
(no redemption) $203 $ 772 $1,368 $2,981
Class M $522 $1,022 $1,549 $2,988
- -------------------------------------------------------------------------
* Reflects the conversion of class B shares to class A shares, which pay
lower 12b-1 fees. Conversion occurs no more than eight years after
purchase.
What are the fund's main investment strategies and related risks?
Any investment carries with it some level of risk that generally reflects
its potential for reward. We pursue the fund's goal by investing mainly in
growth stocks. We will consider, among other things, a company's financial
strength, competitive position in its industry, projected future earnings,
cash flows and dividends when deciding whether to buy or sell investments.
A description of the risks associated with the fund's main investment
strategies follows.
* Common stocks. Common stock represents an ownership interest in a
company. The value of a company's stock may fall as a result of factors
relating directly to that company, such as decisions made by its management
or lower demand for the company's products or services. A stock's value may
also fall because of factors affecting not just the company, but also
companies in the same industry or in a number of different industries, such
as increases in production costs. The value of a company's stock may also
be affected by changes in financial markets that are relatively unrelated
to the company or its industry, such as changes in interest rates or
currency exchange rates. In addition, a company's stock generally pays
dividends only after the company invests in its own business and makes
required payments to holders of its bonds and other debt. For this reason,
the value of a company's stock will usually react more strongly than bonds
and other debt to actual or perceived changes in the company's financial
condition or prospects. Stocks of smaller companies may be more vulnerable
to adverse developments than those of larger companies.
* Growth stocks. These are stocks of companies whose earnings we believe
are likely to grow faster than the economy as a whole. Growth stocks
typically trade at higher multiples of current earnings than other stocks.
Therefore, the values of growth stocks may be more sensitive to changes in
current or expected earnings than the values of other stocks. If our
assessment of the prospects for a company's earnings growth is wrong, or if
our judgment of how other investors will value the company's earnings
growth is wrong, then the price of the company's stock may fall or not
approach the value that we have placed on it.
* Foreign investments. We may invest in securities of foreign issuers.
Foreign investments involve certain special risks. For example, their
values may decline in response to changes in currency exchange rates,
unfavorable political and legal developments, unreliable or untimely
information, and economic and financial instability. In addition, the
liquidity of these investments may be more limited than for U.S.
investments, which means we may at times be unable to sell them at
desirable prices. Foreign settlement procedures may also involve additional
risks. These risks are generally greater in the case of developing (also
known as emerging) markets with less developed legal and financial
systems.
Certain of these risks may also apply to U.S. investments that are
denominated in foreign currencies or that are traded in foreign markets, or
to securities of U.S. companies that have significant foreign operations.
* Smaller companies. We may invest in smaller companies. Smaller companies,
which may have a market capitalization of less than $1 billion, are more
likely than larger companies to have limited product lines, markets or
financial resources, or to depend on a small, inexperienced management
group. Stocks of these companies often trade less frequently and in limited
volume, and their prices may fluctuate more than stocks of larger
companies. Stocks of smaller companies may therefore be more vulnerable to
adverse developments than those of larger companies.
* Frequent trading. We may buy and sell investments relatively often, which
involves higher brokerage commissions and other expenses, and may increase
the amount of taxes payable by shareholders.
* Other investments. In addition to the main investment strategies
described above, we may make other investments, such as investments in
preferred stocks, convertible securities, debt instruments and derivatives,
which may be subject to other risks, as described in the fund's statement
of additional information (SAI).
* Alternative strategies. At times we may judge that market conditions make
pursuing the fund's usual investment strategies inconsistent with the best
interests of its shareholders. We then may temporarily use alternative
strategies that are mainly designed to limit losses. However, we may choose
not to use these strategies for a variety of reasons, even in very volatile
market conditions. These strategies may cause the fund to miss out on
investment opportunities, and may prevent the fund from achieving its goal.
* Changes in policies. The fund's Trustees may change the fund's goal,
investment strategies and other policies without shareholder approval,
except as otherwise indicated.
Who manages the fund?
The fund's Trustees oversee the general conduct of the fund's business. The
Trustees have retained Putnam Management to be the fund's investment
manager, responsible for making investment decisions for the fund and
managing the fund's other affairs and business. The fund pays Putnam
Management a quarterly management fee for these services based on the
fund's average net assets. The fund paid Putnam Management a management fee
of 0.70% of average net assets for the fund's last fiscal year. Due to the
expense limitation in effect during the fiscal year, the management fee was
effectively reduced to 0.00%. See "Annual Fund Operating Expenses." Putnam
Management's address is One Post Office Square, Boston, MA 02109.
The following officers of Putnam Management have had primary responsibility
for the day-to-day management of the fund's portfolio since the years shown
below. Their experience as portfolio managers or investment analysts over
at least the last five years is also shown.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
Manager Since Experience
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Roland W. Gillis 1997 1995 - present Putnam Management
Managing Director Prior to March 1995 Keystone Custodian Funds, Inc.
- ------------------------------------------------------------------------------------------
Charles H. Swanberg 1998 1984 - present Putnam Management
Senior Vice President
- ------------------------------------------------------------------------------------------
</TABLE>
* Year 2000 issues. The fund could be adversely affected if the computer
systems that we and the fund's other service providers use do not properly
process and calculate date-related information relating to the end of the
twentieth century and the beginning of the twenty-first. While year
2000-related computer problems could have a negative effect on the fund,
both in its operations and in its investments, we are working to avoid such
problems and to obtain assurances from service providers that they are
taking similar steps. No assurances, though, can be provided that the fund
will not be adversely impacted by these matters.
How does the fund price its shares?
The price of the fund's shares is based on its net asset value (NAV). The
NAV per share of each class equals the total value of its assets, less its
liabilities, divided by the number of its outstanding shares. Shares are
only valued as of the close of regular trading on the New York Stock
Exchange each day the exchange is open.
The fund values its investments for which market quotations are readily
available at market value. It values short-term investments that will
mature within 60 days at amortized cost, which approximates market value.
It values all other investments and assets at their fair value.
The fund translates prices for its investments quoted in foreign currencies
into U.S. dollars at current exchange rates. As a result, changes in the
value of those currencies in relation to the U.S. dollar may affect the
fund's NAV. Because foreign markets may be open at different times than the
New York Stock Exchange, the value of the fund's shares may change on days
when shareholders are not able to buy or sell them. If events materially
affecting the values of the fund's foreign investments occur between the
close of foreign markets and the close of regular trading on the New York
Stock Exchange, these investments will be valued at their fair value.
How do I buy fund shares?
You can open a fund account with as little as $500 and make additional
investments at any time with as little as $50 ($25 through systematic
investing). The fund sells its shares at the offering price, which is the
NAV plus any applicable sales charge. Your financial advisor or Putnam
Investor Services generally must receive your completed buy order before
the close of regular trading on the New York Stock Exchange for your shares
to be bought at that day's offering price.
You can buy shares
* Through a financial advisor. Your advisor will be responsible for
furnishing all necessary documents to Putnam Investor Services, and may
charge you for his or her services.
* Through systematic investing. You can make regular investments of $25 or
more per month through automatic deductions from your bank checking or
savings account. Application forms are available through your advisor or
Putnam Investor Services at 1-800-225-1581.
You may also complete an order form and write a check for the amount you
wish to invest, payable to the fund. Return the check and completed form to
Putnam Mutual Funds.
The fund may periodically close to new purchases of shares or refuse any
order to buy shares if the fund determines that doing so would be in the
best interests of the fund and its shareholders.
WHICH CLASS OF SHARES IS BEST FOR ME?
This prospectus offers you a choice of four classes of fund shares: A, B, C
and M. This allows you to choose among different types of sales charges and
different levels of ongoing operating expenses, as illustrated in the "Fees
and expenses" section. The class of shares that is best for you depends on
a number of factors, including the amount you plan to invest and how long
you plan to hold the shares. Here is a summary of the differences among the
classes of shares:
Class A shares
* Initial sales charge of up to 5.75%
* Lower sales charge for investments of $50,000 or more
* No deferred sales charge (except on certain redemptions of shares bought
without an initial sales charge)
* Lower annual expenses, and higher dividends, than class B, C or M shares
because of lower 12b-1 fee
Class B shares
* No initial sales charge; your entire investment goes to work for you
* Deferred sales charge of up to 5.00% if you sell shares within 6 years
after you bought them
* Higher annual expenses, and lower dividends, than class A or M shares
because of higher 12b-1 fee
* Convert automatically to class A shares after 8 years, reducing the
future 12b-1 fee (may convert sooner in some cases)
* Orders for class B shares for $250,000 or more are treated as orders for
class A shares or refused
Class C shares
* No initial sales charge; your entire investment goes to work for you
* Deferred sales charge of 1.00% if you sell shares within one year after
you bought them
* Higher annual expenses, and lower dividends, than class A or M shares
because of higher 12b-1 fee
* No conversion to class A shares, so future 12b-1 fee does not decrease
* Orders of $1,000,000 or more and orders that, because of a right of
accumulation or statement of intent, would qualify for the purchase of
class A shares without an initial sales charge will be treated as orders
for class A shares or refused
Class M shares
* Initial sales charge of up to 3.50%
* Lower sales charges for investments of $50,000 or more
* No deferred sales charge
* Lower annual expenses, and higher dividends, than class B or C shares
because of lower 12b-1 fee
* Higher annual expenses, and lower dividends, than class A shares because
of higher 12b-1 fee
* No conversion to class A shares, so future 12b-1 fee does not decrease
Initial sales charges for class A and M shares
- -------------------------------------------------------------------------------
Class A sales charge Class M sales charge
as a percentage of: as a percentage of:
- -------------------------------------------------------------------------------
Amount of purchase Net amount Offering Net amount Offering
at offering price ($) invested price* invested price*
- -------------------------------------------------------------------------------
Under 50,000 6.10% 5.75% 3.63% 3.50%
50,000 but under
100,000 4.71 4.50 2.56 2.50
100,000 but under
250,000 3.63 3.50 1.52 1.50
250,000 but under
500,000 2.56 2.50 1.01 1.00
500,000 but under
1,000,000 2.04 2.00 NONE NONE
1,000,000 and above NONE NONE NONE NONE
- -------------------------------------------------------------------------------
* Offering price includes sales charge.
Deferred sales charges for class B, class C and certain class A shares
If you sell (redeem) class B shares within six years after you bought them,
you will generally pay a deferred sales charge according to the following
schedule.
Year after purchase 1 2 3 4 5 6 7+
- -------------------------------------------------------------------------------
Charge 5% 4% 3% 3% 2% 1% 0%
A deferred sales charge of 1% will apply to class C shares if redeemed
within one year of purchase. A deferred sales charge of up to 1% may apply
to class A shares purchased without an initial sales charge, if redeemed
within two years of purchase.
Deferred sales charges will be based on the lower of the shares' cost and
current NAV. Shares not subject to any charge will be redeemed first,
followed by shares held longest. You may sell shares acquired by
reinvestment of distributions without a charge at any time.
* You may be eligible for reductions and waivers of sales charges. Sales
charges may be reduced or waived under certain circumstances and for
certain groups. Information about reductions and waivers of sales charges
is included in the SAI. You may consult your financial advisor or Putnam
Mutual Funds for assistance.
* Distribution (12b-1) plans. The fund has adopted distribution plans to
pay for the marketing of fund shares and for services provided to
shareholders. The plans provide for payments at annual rates (based on
average net assets) of up to 0.35% on class A shares and 1.00% on class B,
class C and class M shares. The Trustees currently limit payments on class
A and class M shares to 0.25% and 0.75% of average net assets,
respectively. Because these fees are paid out of the fund's assets on an
ongoing basis, they will increase the cost of your investment. The higher
fees for class B, class C and class M shares may cost you more than paying
the initial sales charge for class A shares. Because class C and class M
shares, unlike class B shares, do not convert to class A shares, class C
and class M shares may cost you more over time than class B shares.
How do I sell fund shares?
You can sell your shares back to the fund any day the New York Stock
Exchange is open, either through your financial advisor or directly to the
fund. Payment for redemption may be delayed until the fund collects the
purchase price of shares, which may take up to 15 calendar days after the
purchase date.
* Selling shares through your financial advisor. Your advisor must receive
your request in proper form before the close of regular trading on the New
York Stock Exchange for you to receive that day's NAV, less any applicable
deferred sales charge. Your advisor will be responsible for furnishing all
necessary documents to Putnam Investor Services on a timely basis and may
charge you for his or her services.
* Selling shares directly to the fund. Putnam Investor Services must
receive your request in proper form before the close of regular trading on
the New York Stock Exchange in order to receive that day's NAV, less any
applicable sales charge.
By mail. Send a letter of instruction signed by all registered owners or
their legal representatives to Putnam Investor Services. If you have
certificates for the shares you want to sell, you must include them along
with completed stock power forms.
By telephone. You may use Putnam's telephone redemption privilege to redeem
shares valued at less than $100,000 unless you have notified Putnam
Investor Services of an address change within the preceding 15 days, in
which case other requirements may apply. Unless you indicate otherwise on
the account application, Putnam Investor Services will be authorized to
accept redemption instructions received by telephone.
The telephone redemption privilege is not available if there are
certificates for your shares. The telephone redemption privilege may be
modified or terminated without notice.
* Additional requirements. In certain situations, for example, if you sell
shares with a value of $100,000 or more, the signatures of all registered
owners or their legal representatives must be guaranteed by a bank,
broker-dealer or certain other financial institutions. In addition, Putnam
Investor Services usually requires additional documents for the sale of
shares by a corporation, partnership, agent or fiduciary, or a surviving
joint owner. For more information concerning Putnam's signature guarantee
and documentation requirements, contact Putnam Investor Services.
* When will the fund pay me? The fund generally sends you payment for your
shares the business day after your request is received. Under unusual
circumstances, the fund may suspend redemptions, or postpone payment for
more than seven days, as permitted by federal securities law.
* Redemption by the fund. If you own fewer shares than the minimum set by
the Trustees (presently 20 shares), the fund may redeem your shares without
your permission and send you the proceeds. The fund may also redeem shares
if you own more than a maximum amount set by the Trustees. There is
presently no maximum, but the Trustees could set a maximum that would apply
to both present and future shareholders.
How do I exchange fund shares?
If you want to switch your investment from one Putnam fund to another, you
can exchange your fund shares for shares of the same class of another
Putnam fund at NAV. Not all Putnam funds offer all classes of shares or are
open to new investors. If you exchange shares subject to a deferred sales
charge, the transaction will not be subject to the deferred sales charge.
When you redeem the shares acquired through the exchange, the redemption
may be subject to the deferred sales charge, depending upon when you
originally purchased the shares. The deferred sales charge will be computed
using the schedule of any fund into or from which you have exchanged your
shares that would result in your paying the highest deferred sales charge
applicable to your class of shares. For purposes of computing the deferred
sales charge, the length of time you have owned your shares will be
measured from the date of original purchase and will not be affected by any
exchange.
To exchange your shares, complete an Exchange Authorization Form and send
it to Putnam Investor Services. The form is available from Putnam Investor
Services. A telephone exchange privilege is currently available for amounts
up to $500,000. The telephone redemption privilege is not available if the
fund issued certificates for your shares. Ask your financial advisor or
Putnam Investor Services for prospectuses of other Putnam funds. Some
Putnam funds are not available in all states.
The exchange privilege is not intended as a vehicle for short-term
trading. Excessive exchange activity may interfere with portfolio
management and have an adverse effect on all shareholders. In order to
limit excessive exchange activity and otherwise to promote the best
interests of the fund, the fund reserves the right to revise or terminate
the exchange privilege, limit the amount or number of exchanges or reject
any exchange. The fund into which you would like to exchange may also
reject your exchange. These actions may apply to all shareholders or only
to those shareholders whose exchanges Putnam Management determines are
likely to have a negative effect on the fund or other Putnam funds. Consult
Putnam Investor Services before requesting an exchange.
Fund distributions and taxes
The fund distributes any net investment income and any net realized capital
gains at least once a year. You may choose to:
* reinvest all distributions in additional shares;
* receive any distributions from net investment income in cash while
reinvesting capital gains distributions in additional shares; or
* receive all distributions in cash.
If you do not select an option when you open your account, all
distributions will be reinvested. If you do not cash a distribution check
within a specified period or notify Putnam Investor Services to issue a new
check, the distribution will be reinvested in the fund. You will not
receive any interest on uncashed distribution or redemption checks.
Similarly, if any correspondence sent by the fund or Putnam Investor
Services is returned as "undeliverable," fund distributions will
automatically be reinvested in the fund or in another Putnam fund.
For federal income tax purposes, distributions of investment income are
taxable as ordinary income. Taxes on distributions of capital gains are
determined by how long the fund owned the investments that generated them,
rather than how long you have owned your shares. Distributions are taxable
to you even if they are paid from income or gains earned by the fund before
your investment (and thus were included in the price you paid).
Distributions of gains from investments that the fund owned for more than
one year will be taxable as capital gains. Distributions of gains from
investments that the fund owned for one year or less will be taxable as
ordinary income. Distributions are taxable whether you received them in
cash or reinvested them in additional shares.
The fund's investments in foreign securities may be subject to foreign
withholding taxes. In that case, the fund's return on those investments
would be decreased. Shareholders generally will not be entitled to claim a
credit or deduction with respect to foreign taxes. In addition, the fund's
investment in foreign securities or foreign currencies may increase the
amount of taxes payable by shareholders.
Any gain resulting from the sale or exchange of your shares will generally
also be subject to tax. You should consult your tax advisor for more
information on your own tax situation, including possible foreign, state
and local taxes.
Financial highlights
The financial highlights table is intended to help you understand the
fund's recent financial performance. No class B, class C or class M shares
were outstanding during this period. Certain information reflects financial
results for a single fund share. The total returns represent the rate that
an investor would have earned or lost on an investment in the fund,
assuming reinvestment of all dividends and distributions. This information
has been derived from the fund's financial statements, which have been
audited by PricewaterhouseCoopers LLP. Its report and the fund's financial
statements are included in the fund's annual report to shareholders, which
is available upon request.
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
CLASS A
(For a share outstanding throughout the period)
For the period
Year ended Feb. 17, 1998+
June 30 to June 30
1999 1998
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value,
beginning of period $9.87 $8.50
- ---------------------------------------------------------------------------------------------------------------------------
Investment operations
Net investment loss ab (.08) (.02)
Net realized and unrealized gain
on investments 5.05 1.39
- ---------------------------------------------------------------------------------------------------------------------------
Total from investment operations 4.97 1.37
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $14.84 $9.87
- ---------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
Total return at
net asset value (%)c 50.35 16.12*
Net assets, end of period
(in thousands) $5,429 $2,955
- ---------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets (%)ad 1.00 .37*
Ratio of net investment loss
to average net assets (%)a (.76) (.25)*
Portfolio turnover (%) 207.77 72.22*
- ---------------------------------------------------------------------------------------------------------------------------
+ Commencement of operations.
* Not annualized.
a Reflects an expense limitation during the period. As a result of such limitation, expenses of the fund for the periods
ended June 30, 1999 and 1998 reflect a reduction of $0.08 and $0.06 per share, respectively.
b Per share net investment loss has been determined on the basis of the weighted average number of shares outstanding
during the period.
c Total return assumes dividend reinvestment and does not reflect the effect of sales charges.
d The ratio of expenses to average net assets includes amounts paid through expense offset arrangements.
</TABLE>
For more information
about Putnam New Century
Growth Fund
The fund's statement of additional information (SAI) and annual and
semi-annual reports to shareholders include additional information about
the fund. The SAI, and the auditor's report and financial statements
included in the fund's most recent annual report to its shareholders, are
incorporated by reference into this prospectus, which means they are part
of this prospectus for legal purposes. The fund's annual report discusses
the market conditions and investment strategies that significantly
affected the fund's performance during its last fiscal year. You may get
free copies of these materials, request other information about the fund
and other Putnam funds, or make shareholder inquiries, by contacting your
financial advisor, by visiting Putnam's Web site, or by calling Putnam
toll free at 1-800-225-1581.
You may review and copy information about the fund, including its SAI, at
the Securities and Exchange Commission's public reference room in
Washington, D.C. You may call the Commission at 1-800-SEC-0330 for
information about the operation of the public reference room. You may also
access reports and other information about the fund on the Commission's
Internet site at http://www.sec.gov. You may get copies of this
information, with payment of a duplication fee, by writing the Public
Reference Section of the Commission, Washington, D.C. 20549-6009. You may
need to refer to the fund's file number.
P U T N A M I N V E S T M E N T S
One Post Office Square
Boston, Massachusetts 02109
1-800-225-1581
Address correspondence to
Putnam Investor Services
P.O. Box 989
Boston, Massachusetts 02103
www.putnaminv.com
File No. 811-7513 NP071 57793 12/99
