PUTNAM HIGH YIELD TRUST
Prospectus Supplement dated December 11, 1996
to Class A, B and M Prospectus dated January 1, 1996
and Class A Prospectus dated January 1, 1996, as
revised October 1, 1996
At a shareholder meeting to be held on February 6, 1997,
shareholders of the fund will be asked to approve a number of
changes to the fund's fundamental investment restrictions
including the elimination of certain restrictions. If the
proposed changes are approved, the fund will be able to:
-- acquire more than 10% of the outstanding voting
securities of any issuer with respect to 25% of its
total assets; and
-- invest more than 5% of its total assets in securities
of any issuer with respect to 25% of its total assets.
(Investments in obligations issued or guaranteed as to
interest or principal by the U.S. government or its
agencies or instrumentalities are not subject to any
limitation.)
In addition, the fund will no longer be prohibited from acquiring
more than 10% of any one class of securities of any one issuer,
and will no longer be limited in its investments in companies
that have been in operation for less than three years. Also, the
fund would no longer have a fundamental restriction with respect
to investments in restricted securities.
See the statement of additional information of the fund for the
full text of these policies as well as the fund's other
fundamental policies, some of which are also proposed to be
amended at the upcoming meeting.
To the extent the fund invests a significant portion of its
assets in the securities of a particular issuer, the fund will be
subject to an increased risk of loss if the market value of such
issuer's securities declines.
If shareholders do not approve some or all of the proposed
changes, the prospectus will be revised accordingly.
30252 12/96
