PUTNAM PREFERRED INCOME FUND
497, 1995-04-10
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                       PUTNAM PREFERRED INCOME FUND

                      Supplement dated April 10, 1995
                     to Prospectus dated March 1, 1995



Jeanne L. Mockard, Senior Vice President of Putnam Management and
Vice President of the Fund, has had primary responsibility for
the day-to-day management of the Fund's portfolio since 1995. 
Ms. Mockard has been employed by Putnam Management since 1990.


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