As filed with the Securities and Exchange Commission on
December 13 , 1995
Registration No. 2-98790
811-4345
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM N-1A
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REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 / X /
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Pre-Effective Amendment No. / /
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Post-Effective Amendment No. 13 / X /
and ----
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REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY / X /
ACT OF 1940 ----
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Amendment No. 13 / X /
(Check appropriate box or boxes) ----
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PUTNAM TAX-FREE INCOME TRUST
(Exact name of registrant as specified in charter)
One Post Office Square, Boston, Massachusetts 02109
(Address of principal executive offices)
Registrant's Telephone Number, including Area Code
(617) 292-1000
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It is proposed that this filing will become effective
(check appropriate box)
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/ X / immediately upon filing pursuant to paragraph (b)
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/ / on December 1, 1995 pursuant to paragraph (b)
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/ / 60 days after filing pursuant to paragraph (a)(1)
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/ / on (date) pursuant to paragraph (a)(1)
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/ / 75 days after filing pursuant to paragraph (a)(2)
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/ / on (date) pursuant to paragraph (a)(2) of Rule 485.
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If appropriate, check the following box:
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/ / this post-effective amendment designates a new
- ---- effective date for a previously filed post-effective
amendment.
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JOHN R. VERANI, Vice President
PUTNAM TAX-FREE INCOME TRUST
One Post Office Square
Boston, Massachusetts 02109
(Name and address of agent for service)
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Copy to:
JOHN W. GERSTMAYR, Esquire
ROPES & GRAY
One International Place
Boston, Massachusetts 02110
The Registrant has registered an indefinite number or
amount of securities under the Securities Act of 1933 pursuant to
Rule 24f-2. A Rule 24f-2 notice for the fiscal year ended July
31, 1995 was filed on September 27 , 1995.<PAGE>
<TABLE>
<CAPTION>
Putnam Tax-Free High Yield Fund
CALCULATION OF REGISTRATION FEE
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- -----------------------------------------------------------------------------------------
Proposed Proposed
maximum maximum
Amount offering aggregate Amount of
Title of securities being price per offering registration
being registeredregistered unit* price** fee
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<C> <C> <C> <C> <C>
Shares of Beneficial
Interest 960,973 shs. $15.27 $290,000 $100.00
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- -----------------------------------------------------------------------------------------
* Based on offering price per share on November 29, 1995.
** Calculated pursuant to Rule 24e-2 under the Investment Company Act of 1940.
The total amount of securities of Putnam Tax-Free High Yield Fund redeemed
or repurchased during the Registrant's previous fiscal year was
35,681,139 shares, 34,735,589 of which have been used for
reductions pursuant to Rule 24e-2(a) or Rule 24f-2(c) under said Act in the
current fiscal year, and 945,550 of which are being used for such
reduction in this Amendment.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Putnam Tax-Free Insured Fund
CALCULATION OF REGISTRATION FEE
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
Proposed Proposed
maximum maximum
Amount offering aggregate Amount of
Title of securities being price per offering registration
being registeredregistered unit* price** fee
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<C> <C> <C> <C> <C>
Shares of Beneficial
Interest 2,691,331 shs. $16.10 $290,000 $100.00
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
* Based on offering price per share on November 29, 1995.
** Calculated pursuant to Rule 24e-2 under the Investment Company Act of 1940.
The total amount of securities of Putnam Tax-Free Insured Fund redeemed or
repurchased during the Registrant's previous fiscal year was 9,897,518 shares,
7,223,209 of which have been used for reductions pursuant to Rule 24e-2(a) or Rule
24f-2(c) under said Act in the current fiscal year, and 2,674,309 of which are
being used for such reduction in this Amendment.
</TABLE>
<PAGE>
PUTNAM TAX-FREE INCOME TRUST
CROSS REFERENCE SHEET
(as required by Rule 481(a))
Part A
N-1A Item No. Location
1. Cover Page....................... Cover page
2. Synopsis......................... Expenses summary
3. Condensed Financial Information.. Financial highlights;
How performance is shown
4. General Description of
Registrant....................... Objective; How the fund
pursues its objective;
Organization and history
5. Management of the Fund.......... Expenses summary; How
the fund is managed;
About Putnam
Investments, Inc.
5A. Management's Discussion of Fund
Performance...................... (Contained in the annual
report of the
Registrant)
6. Capital Stock and Other
Securities....................... Cover page; Organization
and history; How the
fund makes
distributions to
shareholders; tax
information
7. Purchase of Securities Being
Offered.......................... How to buy shares;
Distribution plans; How
to sell shares; How to
exchange shares; How the
fund values its shares
8. Redemption or Repurchase......... How to buy shares; How
to sell shares; How to
exchange shares;
Organization and history
9. Pending Legal Proceedings........ Not applicable<PAGE>
Part B
N-1A Item No. Location
10. Cover Page....................... Cover page
11. Table of Contents................ Cover page
12. General Information and History. Organization and history
(Part A)
13. Investment Objectives and
Policies......................... How the fund pursues its
objective is pursued
(Part A); Investment
restrictions;
Miscellaneous investment
practices
14. Management of the Registrant..... Management (Trustees;
Officers); Additional
officers
15. Control Persons and Principal
Holders of Securities............ Management (Trustees;
Officers); Charges and
expenses (Share
ownership)
16. Investment Advisory and Other
Services......................... Management (Trustees;
Officers; The management
contract; Principal
underwriter; Investor
servicing agent and
custodian); Charges and
expenses; Distribution
plans; Independent
accountants and
financial statements
17. Brokerage Allocation............ Management (Portfolio
transactions); Charges
and expenses
<PAGE>
18. Capital Stock and Other
Securities....................... Organization and history
(Part A); How the fund
makes distributions to
shareholders; tax
information (Part A);
Suspension of
redemptions
19. Purchase, Redemption and Pricing
of Securities Being Offered...... How to buy shares (Part
A); How to sell shares
(Part A); How to
exchange shares (Part
A); How to buy shares;
Determination of net
asset value; Suspension
of redemptions
20. Tax Status....................... How the fund makes
distributions to
shareholders; tax
information (Part A);
Taxes
21. Underwriters..................... Management (Principal
underwriter); Charges
and expenses
22. Calculations of Performance Data. How performance is shown
(Part A); Investment
performance; Standard
performance measures
23. Financial Statements............. Independent accountants
and financial statements
Part C
Information required to be included in Part C is set forth
under the appropriate Item, so numbered, in Part C of the
Registration Statement.
<PAGE>
(The prospectuses and statement of additional
information for Putnam Tax-Free Income Trust are incorporated by
reference from Post-Effective Amendment No. 12 to the Trust's
Registration Statement, File No. 2-98790 filed on December 1,
1995.)
<PAGE>
PUTNAM TAX-FREE INCOME TRUST
FORM N-1A
PART C
OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) Index to Financial Statements and Supporting
Schedules:
(1) Financial Statements:
Statements of assets and liabilities -- July
31, 1995(a).
Statements of operations -- year ended July
31, 1995(a).
Statements of changes in net assets -- years
ended July 31, 1995 and 1994(a).
Financial highlights(a)(b).
Notes to financial statements(a).
(2) Supporting Schedules:
Schedule I -- Portfolios of investments owned
-- July 31, 1995(a).
Schedules II through IX omitted because the
required matter is not present.
(a) Incorporated by reference into Parts A
and B.
(b) Included in Part A.
- -------------------------
(b) Exhibits:
1. Agreement and Declaration of Trust, as
amended and restated July 21, 1993 --
Incorporated by reference to Post-Effective
Amendment No. 10 to the Registrant's
Registration Statement.
2. Bylaws, as amended February 1, 1994 --
Incorporated by reference to Post-Effective
Amendment No. 11 to the Registrant's
Registration Statement.
3. Not applicable.
4a. Specimen share certificates -- Incorporated
by reference to Post-Effective Amendment No.
9 to the Registrant's Registration Statement.
4b. Portions of Agreement and Declaration of
Trust Relating to Shareholder's Rights --
Incorporated by reference to Post-Effective
Amendment No. 10 to the Registrant's
Registration Statement.
4c. Portions of Bylaws Relating to Shareholder's
Rights -- Incorporated by reference to Post-
Effective Amendment No. 10 to the
Registrant's Registration Statement.
4d. Class M Specimen share certificate for Putnam
Tax-Free High Yield Fund -- Incorporated by
reference to Post-Effective Amendment No. 11
to the Registrant's Registration Statement.
4e. Class M Specimen share certificate for Putnam
Tax-Free Insured Fund -- Incorporated by
reference to Post-Effective Amendment No. 12
to the Registrant's Registration
Statement.
5. Management Contract for Putnam Tax-Free
Income Trust dated July 26, 1985, as amended
and restated as of July 1, 1994 --
Incorporated by reference to Post-Effective
Amendment No. 11 to the Registrant's
Registration Statement.
6a. Distributors' Contract for Putnam Tax-Free
Insured Fund dated May 6, 1994 --Incorporated
by reference to Post-Effective Amendment No.
11 to the Registrant's Registration
Statement.
Distributors' Contract for Putnam Tax-Free
High Yield Fund -- Incorporated by reference
to Post-Effective Amendment No. 11 to the
Registrant's Registration Statement.
6b. Form of Specimen Dealer Sales Contract --
Incorporated by reference to Post-Effective
Amendment No. 8 to the Registrant's
Registration Statement.
6c. Form of Specimen Financial Institution Sales
Contract -- Incorporated by reference to
Post-Effective Amendment No. 8 to the
Registrant's Registration Statement.
7. Not applicable.
8. Custodian Agreement dated May 3, 1991 with
Putnam Fiduciary Trust Company --Incorporated
by reference to Post-Effective Amendment No.
8 to the Registrant's Registration Statement.
9. Investor Servicing Agency Agreement dated
June 3, 1991 with Putnam Fiduciary Trust
Company -- Incorporated by reference to Post-
Effective Amendment No. 8 to the Registrant's
Registration Statement.
10. Opinion of Ropes & Gray, including consent
for Putnam Tax-Free Income Trust -- Exhibit
1 .
11. Not applicable.
12. Not applicable.
13. Investment Letter from Putnam Investment
Management, Inc. to the Registrant --
Incorporated by reference to Post-
Effective Amendment No. 12 to the
Registrant's Registration Statement .
14. Not applicable.
15a. Class A Distribution Plan and Agreement for
Putnam Tax-Free Insured Fund dated September
19, 1993 -- Incorporated by reference to
Post-Effective Amendment No. 10 to the
Registrant's Registration Statement.
15b. Class B Distribution Plan and Agreement for
Putnam Tax-Free Insured Fund, as revised
August 23, 1993 -- Incorporated by reference
to Post-Effective Amendment No. 10 to the
Registrant's Registration Statement.
15c. Class A Distribution Plan and Agreement for
Putnam Tax-Free High Yield Fund dated
September 19, 1993 -- Incorporated by
reference to Post-Effective Amendment No. 10
to the Registrant's Registration Statement.
15d. Class B Distribution Plan and Agreement for
Putnam Tax-Free High Yield Fund, as revised
August 23, 1993 -- Incorporated by reference
to Post-Effective Amendment No. 10 to the
Registrant's Registration Statement.
15e. Class M Distribution Plan and
Agreement for Putnam Tax-Free High Yield Fund
-- Incorporated by reference to Post-
Effective Amendment No. 11 to the
Registrant's Registration Statement.
15f. Class M Distribution Plan and
Agreement for Putnam Tax-Free Insured Fund --
Incorporated by reference to Post-
Effective Amendment No. 12 to the
Registrant's Registration Statement.
15g. Form of Specimen Dealer Service Agreement --
Incorporated by reference to Post-Effective
Amendment No. 8 to the Registrant's
Registration Statement.
15h. Form of Specimen Financial Institution
Service Agreement - Incorporated by reference
to Post-Effective Amendment No. 8 to the
Registrant's Registration Statement.
16a. Schedules for computation of performance
quotations for Putnam Tax-Free High Yield
Fund -- Incorporated by reference to Post-
Effective Amendment No. 12 to the
Registrant's Registration Statement.
16b. Schedules for computation of performance
quotations for Putnam Tax-Free Insured Fund -
- Incorporated by reference to Post-
Effective Amendment No. 12 to the
Registrant's Registration Statement.
17a. Financial Data Schedule for Putnam Tax-Free
Insured Fund - Class A shares -- Exhibit
2 .
17b. Financial Data Schedule for Putnam Tax-Free
Insured Fund - Class B shares -- Exhibit
3 .
17c. Financial Data Schedule for Putnam Tax-Free
Insured Fund - Class M shares -- Exhibit
4 .
17d. Financial Data Schedule for Putnam Tax-Free
High Yield Fund - Class A shares -- Exhibit
5 .
17e. Financial Data Schedule for Putnam Tax-Free
High Yield Fund - Class B shares -- Exhibit
6 .
17f. Financial Data Schedule for Putnam Tax-Free
High Yield Fund - Class M shares -- Exhibit
7 .
18. Rule 18f-3(d) Plan -- Incorporated by
reference to Post-Effective Amendment No. 12
to the Registrant's Registration
Statement.
Item 25. Persons Controlled by or under Common Control with
Registrant
None.
Item 26. Number of Holders of Securities
As of October 31, 1995 the number of each fund's
record holders of each class of securities of the Registrant is
as follows:
Number of record holders
------------------------------
Class A Class B Class M
------- ------- -------
Putnam Tax-Free High Yield Fund 16,065 39,620 105
Putnam Tax-Free Insured Fund 5,403 10,516 6
Item 27. Indemnification
The information required by this item is incorporated
by reference from the Registrant's Initial Registration Statement
on Form N-1A under the Investment Company Act of 1940 (File No.
811-4345).
<PAGE>
<PAGE>
Item 28. Business and Other Connections of Investment Adviser
Except as set forth below, the directors and officers
of the Registrant's investment adviser have been engaged during
the past two fiscal years in no business, vocation or employment
of a substantial nature other than as directors or officers of
the investment adviser or certain of its corporate affiliates.
Certain officers of the investment adviser serve as officers of
some or all of the Putnam funds. The address of the investment
adviser, its corporate affiliates and the Putnam Funds is One
Post Office Square, Boston, Massachusetts 02109.
NAME NON-PUTNAM BUSINESS AND OTHER
CONNECTIONS
Gail S. Attridge Prior to November, 1993, International
Vice President Analyst, Keystone Custodian Funds,
200 Berkeley Street, Boston, MA
02116
James D. Babcock Prior to June, 1994, Interest
Assistant Vice President Supervisor, Salomon Brothers, Inc.
7 World Trade Center, New York, NY
10048
Robert K. Baumbach Prior to August, 1994, Vice President
Vice President and Analyst, Keystone Custodian
Funds, 200 Berkeley St., Boston, MA
02110
Janet S. Becker Prior to July, 1995, National Account
Assistant Vice President Manager for Booz-Allen & Hamilton,
American Express Travel Management
Services, 100 Cambridge Park Drive,
02140; Prior to August, 1994,
Account Manager, Hilton at Dedham
Place, Dedham, MA 02026
Sharon A. Berka Prior to January, 1994, Vice
Vice President President - Compensation Manager,
BayBanks, Inc., 175 Federal Street,
Boston, MA 02110
Matthew G. Bevin Prior to February, 1995, Consultant,
Assistant Vice President SEI Corporation, 680 East Swedesford
Road, Wayne, PA 19807
Thomas Bogan Prior to November, 1994, Analyst
Senior Vice President Lord, Abbett & Co., 767 Fifth
Avenue, New York, NY 10153
Michael F. Bouscaren Prior to May, 1994, President and
Senior Vice President Chairman of the Board of Directors
at Salomon Series Funds, Inc. and a
Director of Salomon Brothers Asset
Management, 7 World Trade Center,
New York, NY 10048
Brett Browchuk Prior to April, 1994, Managing
Managing Director Director, Fidelity Investments, 82
Devonshire St., Boston, MA 02109
Andrea Burke Prior to August, 1994, Vice President
Vice President and Portfolio Manager, Back Bay
Advisors, 399 Boylston St., Boston,
MA 02116
Susan Chapman Prior to June, 1995, Vice President,
Senior Vice President Forbes, Walsh, Kelly & Company,
Inc., 17 Battery Place, New York, NY
10004
Steven Cheshire Prior to January, 1994, Assistant
Vice President Vice President, Wellington
Management, 75 State Street, Boston,
MA 02109
Louis F. Chrostowski Prior to August, 1995, Manager of
Vice President Compensation and Benefits, Itek
Optical Systems, 10 MacGuire Rd.,
Lexington, MA 02173
Judith S. Deming Prior to May, 1995, Asset Manager,
Assistant Vice President Fidelity Management & Research
Company, 82 Devonshire St., Boston,
MA 02109
John A. DeTore Prior to January, 1994, Director of
Managing Director Quantitative Portfolio Management,
Wellington Management, 75 State
Street, Boston, MA 02109
Theodore J. Deutz Prior to January, 1995, Senior Vice
Vice President President, Metropolitan West
Securities, Inc. 10880 Wilshire
Blvd., Suite 200, Los Angeles, CA
90024
Michael G. Dolan Prior to February, 1994, Senior
Assistant Vice President Financial Analyst, General Electric
Company, 1000 Western Ave., Lynn, MA
01905
Joseph J. Eagleeye Prior to August, 1994, Associate,
Assistant Vice President David Taussig & Associates, 424
University Ave., Sacramento, CA
95813
Michael T. Fitzgerald Prior to September, 1994, Senior
Senior Vice President Vice President, Vantage Global
Advisers, 1201 Morningside Dr.,
Manhattan Beach, CA 90266
Roland Gillis Prior to March, 1995, Vice President
Senior Vice President and Senior Portfolio Manager,
Keystone Group, Inc., 200 Berkeley
St., Boston, MA 02116
Mark D. Goodwin Prior to May, 1994, Manager, Audit &
Assistant Vice President Operations Analysis, Mitre
Corporation, 202 Burlington Rd.,
Bedford, MA 01730
Stephen A. Gorman Prior to July, 1994, Financial
Assistant Vice President Analyst, Boston Harbor Trust
Company, 100 Federal St., Boston, MA
02110
Jill Grossberg Prior to March, 1995, Associate
Assistant Vice President Counsel, 440 Financial Group of
and Associate Counsel Worcester, Inc., 440 Lincoln St.,
Worcester, MA 01653; Prior to
November, 1993, Counsel, Berman
DeValerio & Pease, One Liberty
Square, Boston, MA 02109
Deborah R. Healey Prior to June, 1994, Senior Equity
Senior Vice President Trader, Fidelity Management &
Research Company, 82 Devonshire St.,
Boston, MA 02109
Lisa A. Heitman Prior to July, 1994, Securities
Senior Vice President Analyst, Lord, Abbett & Company, 767
Fifth Ave., New York, NY 10153
Pamela Holding Prior to May, 1995, Senior Securities
Vice President Analyst, Kemper Financial Services,
Inc., 120 South LaSalle St.,
Chicago, IL 60603
Michael F. Hotchkiss Prior to May, 1994, Vice President,
Vice President Massachusetts Financial Services,
500 Boylston St., Boston, MA 02116
<PAGE>
Walter Hunnewell, Jr. Prior to April, 1994, Managing
Vice President Director, Veronis, Suhler &
Associates, 350 Park Avenue, New
York, NY 10022
Joseph Joseph Prior to October, 1994, Managing
Vice President Director, Vert Independent Capital
Research, 53 Wall St., New York, NY
10052
Mary E. Kearney Prior to February, 1995, Partner,
Managing Director Price Waterhouse, 160 Federal St.,
Boston, MA 02110
D. William Kohli Prior to September, 1994, Executive
Managing Director Vice President and Co-Director of
Global Bond Management, Franklin
Advisors/Templeton Investment
Counsel, 777 Mariners Island Blvd.,
San Mateo, CA 94404
Karen R. Korn Prior to June, 1994, Vice President,
Vice President Assistant to the President, Designs,
Inc. 1244 Boylston St., Chestnut
Hill, MA 02167
Peter B. Krug Prior to January, 1995, Owner and
Vice President Director, Griswold Special Care, 42
Ethan Allen Drive, Acton, MA 01720
Catherine A. Latham Prior to August, 1995, Director of
Vice President Human Resources, Electronic Data
Systems, 1601 Trapello Rd., Waltham,
MA 02154
Kevin Lemire Prior to March, 1995, Corporate
Assistant Vice President Facilities Manager, Bose
Corporation, The Mountain,
Framingham, MA 01701; Prior to June,
1994, Facilities Manager, The
Pioneer Group, 60 State St., Boston,
MA 02109
Lawrence J. Lasser Director, Marsh & McLennan Companies,
President, Director Inc., 1221 Avenue of the Americas,
and Chief Executive New York, NY 10020; Director,
Officer INROADS/Central New England, Inc.,
99 Bedford St., Boston,MA 02111
Jeffrey R. Lindsey Prior to April, 1994, Vice President
Vice President and Board Member, Strategic
Portfolio Management, 900 Ashwood
Parkway, Suite 290, Atlanta, GA
30338
James W. Lukens Prior to February, 1995, Vice
Senior Vice President President of Institutional
Marketing, Keystone Group, Inc., 200
Berkeley St., Boston, MA 02116
Michael Martino Prior to January, 1994, Executive
Managing Director Vice President and Chief Investment
Officer until 1992
Helen Mazareas Prior to May, 1995, Librarian,
Assistant Vice President Scudder, Stevens & Clark, 2
International Place, Boston, MA
02110; Prior to January, 1994,
Systems Librarian, Goodwin, Procter
& Hoar, Exchange Place, Boston, MA
02109
Alexander J. McAuley Prior to June, 1995, Vice President,
Senior Vice President Deutsche Bank Securities Corp. -
Deutsche Asset Management, 1290
Avenue of the Americas, New York, NY
10019
Susan A. McCormack Prior to May, 1994, Associate
Vice President Investment Banker, Merrill Lynch &
Co., 350 South Grand Ave., Suite
2830, Los Angeles, CA 90071
Carol McMullen Prior to June, 1995, Senior Vice,
Managing Director President and Senior Portfolio
Manager, Baring Asset Management,
125 High Street, Boston, MA 02110
Darryl Mikami Prior to June, 1995, Vice President,
Senior Vice President Fidelity Management & Research
Company, 82 Devonshire St., Boston,
MA 02109
Carol H. Miller Prior to July, 1995, Business
Assistant Vice President Development Officer, Bank of Boston
- Connecticut, 100 Pearl St.,
Hartford, CT 06101
Seung H. Minn Prior to June, 1995, Vice President
Vice President in Portfolio Management and
Research, Templeton Quantitative
Advisors, Inc.,
Maziar Minovi Prior to January, 1995, Associate
Vice President Privatization Specialist, The
International Bank for
Reconstruction and Development, 1818
H St. N.W., Washington, DC 20433
Kenneth Mongtomery Prior to July, 1995, Senior Vice
Managing Director President and Director of World Wide
Sales, Chemcial Banking Corporation,
Paul G. Murphy Prior to January, 1995, Section
Assistant Vice President Manager, First Data Corp., 53 State
Street, Boston, MA 02109
C. Patrick O'Donnell, Jr. Prior to May, 1994, President,
Managing Director Exeter Research, Inc., 163 Water
Street, Exeter, New Hampshire, 03833
Brian O'Keefe Prior to December, 1993, Vice
Vice President President - Foreign Exchange Trader,
Bank of Boston, 100 Federal Street,
Boston, MA 02109
Margaret Pietropaolo Prior to January, 1994, Data Base/
Assistant Vice President Production Analyst, Wellington
Management, 75 State Street, Boston,
MA 02109
Jane E. Price Prior to February, 1995, Associate
Assistant Vice President ERISA Attorney, Hale & Dorr,
60 State St., Boston, MA 02109
Keith Quinton Prior to July, 1995, Vice President,
Senior Vice President Falconwood Securities Corporation.,
Paul T. Quistberg Prior to July, 1995, Assistant
Assistant Vice President Investment Officer, The Travelers
Insurance Group.,
George Putnam Chairman and Director, Putnam Mutual
Chairman and Director Funds Corp.; Director, The Boston
Company, Inc., One Boston Place,
Boston, MA 02108; Director, Boston
Safe Deposit and Trust Company, One
Boston Place, Boston, MA 02108;
Director, Freeport-McMoRan, Inc.,
200 Park Avenue, New York, NY 10166;
Director, General Mills, Inc., 9200
Wayzata Boulevard, Minneapolis, MN
55440; Director, Houghton Mifflin
Company, One Beacon Street, Boston,
MA 02108; Director, Marsh & McLennan
Companies, Inc., 1221 Avenue of the
Americas, New York, NY 10020;
Director, Rockefeller Group, Inc.,
1230 Avenue of the Americas, New
York, NY 10020
Thomas Rosalanko Prior to February, 1995, Senior
Senior Vice President Account Manager, SEI Corporation,
680 East Swedesford Road, Wayne, PA
19807
Michael Scanlon Prior to February, 1995, Senior
Assistant Vice President Financial Analyst, Massachusetts
Financial Services, 500 Boylston
St., Boston, MA 02116
Robert M. Shafto Prior to January, 1995, Account
Assistant Vice President Manager, IBM Corporation, 404 Wyman
St., Waltham, MA 02254
Karen F. Smith Prior to May, 1994, Consultant and
Assistant Vice President Portfolio Manager, Wyatt Asset
Services, Inc., 1211 W.W. 5th Ave.,
Portland, OR 97204
Margaret Smith Prior to September, 1995, Vice
Senior Vice President President, State Street Research,
One Financial Center, Boston, MA
02111
Steven Spiegel Prior to December, 1994, Managing
Senior Managing Director Director/Retirement, Lehman
Brothers, Inc., 200 Vesey St., World
Financial Center, New York, NY 10285
George W. Stairs Prior to July, 1994, Equity Research
Vice President Analyst, ValueQuest Limited,
Roundy's Hill, Marblehead, MA 01945
James H. Steggall Prior to May, 1995, Senior Municipal
Assistant Vice President Analyst, Colonial Management
Associates, Inc., One Financial
Center, Boston, MA 02111; Prior to
May, 1994, Controller, Wheelabrator
Environmental Systems, Libery Lane,
Hampton, NH 03842
Karen Stewart Prior to May, 1995, Equity Research
Assistant Vice President Analyst, Chancellor Capital
Management, 1166 Avenue of the
Americas, New York, NY 10036
Roger Sullivan Prior to December, 1994, Vice
Senior Vice President President, State Street Research &
Management Co., One Financial
Center, Boston, MA 02111
Robert Swift Prior to August, 1995, Far East Team
Senior Vice President Leader and Portfolio Manager, IAI
International/Hill Samuel Investment
Advisors, 10 Fleet Place, London,
England
Jerry H. Tempelman Prior to May, 1994, Senior Money
Assistant Vice President Market Trader, State Street Bank &
Trust Co., 225 Franklin, Street,
Boston, MA 02110
Michael Temple Prior to June, 1995, Vice President,
Vice President Duff & Phelps, 55 East Monroe,
Chicago, IL 60613
Hillary F. Till Prior to May, 1994, Fixed-Income
Vice President Derivative Trader, Bank of Boston,
100 Federal Street, Boston, MA
02109; Prior to December, 1993,
Equity Analyst, Harvard Management
Company, 600 Atlantic St., Boston,
MA 02109
Lisa L. Trubiano Prior to July, 1995, Senior Marketing
Vice President Consultant, John Hancock Mutual Life
Insurance Company,
Elizabeth A. Underhill Prior to August, 1994, Vice President
Senior Vice President and Senior Equity Analyst, State
Street Bank and Trust Company, 225
Franklin St., Boston, MA 02110
Charles C. Van Vleet Prior to August, 1994, Vice President
Senior Vice President and Fixed-Income Manager, Alliance
Capital Management, 1345 Avenue of
the Americas, New York, NY 10105
Francis P. Walsh Prior to November, 1994, Research
Vice President Analyst, Furman, Selz, Inc. 230 Park
Avenue, New York, NY 10169; Prior to
December, 1993, Strategic Marketing
Analyst, Lotus Development,
Corporation 55 Cambridge Parkway,
Cambridge, MA 02142
Michael R. Weinstein Prior to March, 1994, Management
Vice President Consultant, Arthur D. Little, Acorn
Park, Cambridge, MA 02140
<PAGE>
Item 29. Principal Underwriter
(a) Putnam Mutual Funds Corp. is the principal underwriter for
each of the following investment companies, including the
Registrant:
Putnam Adjustable Rate U.S. Government Fund, Putnam American
Government Income Fund, Putnam American Renaissance Fund, Putnam
Arizona Tax Exempt Income Fund, Putnam Asia Pacific Growth Fund,
Putnam Asset Allocation Funds, Putnam Balanced Retirement Fund,
Putnam California Tax Exempt Income Trust, Putnam California Tax
Exempt Money Market Fund, Putnam Capital Appreciation Fund,
Putnam Capital Manager Trust, Putnam Convertible Income-Growth
Trust, Putnam Diversified Equity Trust, Putnam Diversified Income
Trust, Putnam Equity Income Fund, Putnam Europe Growth Fund,
Putnam Federal Income Trust, Putnam Florida Tax Exempt Income
Fund, The Putnam Fund for Growth and Income, The George Putnam
Fund of Boston, Putnam Global Governmental Income Trust, Putnam
Global Growth Fund, Putnam Growth Fund, Putnam Growth and Income
Fund, Putnam Health Sciences Trust, Putnam High Yield Trust,
Putnam High Yield Advantage Fund, Putnam Income Fund, Putnam
Intermediate Tax Exempt Income Fund, Putnam Intermediate U.S.
Government Income Fund, Putnam Investment Funds, Putnam
Investment-Grade Bond Fund, Putnam Investors Fund, Putnam
Massachusetts Tax Exempt Income Fund, Putnam Michigan Tax Exempt
Income Fund, Putnam Minnesota Tax Exempt Income Fund, Putnam
Money Market Fund, Putnam Municipal Income Fund, Putnam Natural
Resources Fund, Putnam New Jersey Tax Exempt Income Fund, Putnam
New Opportunities Fund, Putnam New York Tax Exempt Income Trust,
Putnam New York Tax Exempt Money Market Fund, Putnam New York Tax
Exempt Opportunities Fund, Putnam Ohio Tax Exempt Income Fund,
Putnam OTC Emerging Growth Fund, Putnam Overseas Growth Fund,
Putnam Pennsylvania Tax Exempt Income Fund, Putnam Preferred
Income Fund, Putnam Research Fund, Putnam Tax Exempt Income Fund,
Putnam Tax Exempt Money Market Fund, Putnam Tax-Free Income
Trust, Putnam U.S. Government Income Trust, Putnam Utilities
Growth and Income Fund, Putnam Vista Fund, Putnam Voyager Fund<PAGE>
<TABLE>
<CAPTION>
(b) The directors and officers of the Registrant's principal underwriter are:
Positions and Offices Positions and Offices
Name with Underwriter with Registrant
<C> <C> <C>
John V. Adduci Assistant Vice President None
Christopher S. Alpaugh Vice President None
Paulette C. Amisano Vice President None
Ronald J. Anwar Vice President None
Steven E. Asher Senior Vice President None
Scott A. Avery Vice President None
Hallie L. Baron Assistant Vice President None
Ira G. Baron Senior Vice President None
John L. Bartlett Senior Vice President None
Dale Beardon Senior Vice President None
Steven M. Beatty Vice President None
Matthew F. Beaudry Vice President None
Janet S. Becker Assistant Vice President None
John J. Bent Vice President None
Thomas A. Beringer Vice President None
Sharon A. Berka Vice President None
Maureen L. Boisvert Vice President None
John F. Boneparth Managing Director None
Keith R. Bouchard Vice President None
Linda M. Brady Assistant Vice President None
Leslee R. Bresnahan Senior Vice President None
James D. Brockelman Senior Vice President None
Scott C. Brown Vice President None
Gail D. Buckner Senior Vice President None
Robert W. Burke Senior Managing Director None
Ellen S. Callahan Vice President None
Thomas C. Callahan Assistant Vice President None
Peter J. Campagna Vice President None
Robert Capone Vice President None
Charles A. Carey Vice President None
Patricia A. Cartwright Assistant Vice President None
Janet Casale-Sweeney Vice President None
Stephen J. Chaput Assistant Vice President None
Louis F. Chrostowski Vice President None
Daniel J. Church Vice President None
James E. Clinton Assistant Vice President None
Kathleen M. Collman Managing Director None
Mark L. Coneeny Vice President None
Donald A. Connelly Senior Vice President None
Karen E. Connolly Assistant Vice President None
Anna Coppola Vice President None
F. Nicholas Corvinus Senior Vice President None
Thomas A. Cosmer Vice President None
Chad H. Cristo Assistant Vice President None
Lisa M. D'Allesandro Assistant vice President None
Jessica E. Dahill Vice President None
Kenneth L. Daly Senior Vice President None
Edward H. Dane Vice President None
Nancy M. Days Assistant Vice President None
Pamela De Oliveira-Smith Assistant Vice President None
Richard D. DeSalvo Vice President None
Joseph C. DeSimone Assistant Vice President None
Daniel J. Delianedis Vice President None
Judith S. Deming Assistant Vice President None
Teresa F. Dennehy Assistant Vice President None
J. Thomas Despres Senior Vice President None
Michael G. Dolan Assistant Vice President None
Scott M. Donaldson Vice President None
Emily J. Durbin Vice President None
Dwyer Cabana, Susan Vice President None
David B. Edlin Senior Vice President None
James M. English Senior Vice President None
Vincent Esposito Managing Director None
Mary K. Farrell Assistant Vice President None
Michael J. Fechter Vice President None
Susan H. Feldman Vice President None
Paul F. Fichera Senior Vice President None
C. Nancy Fisher Senior Vice President None
Mitchell B. Fishman Senior Vice President None
Joseph C. Fiumara Vice President None
Patricia C. Flaherty Senior Vice President None
Samuel F. Gagliardi Vice President None
Karen M. Gardner Assistant Vice President None
Judy S. Gates Vice President None
Richard W. Gauger Assistant Vice President None
Joseph P. Gennaco Vice President None
Stephen E. Gibson Managing Director None
Mark P. Goodfellow Assistant Vice President None
Robert Goodman Managing Director None
Mark D. Goodwin Assistant Vice President None
Anthony J. Grace Assistant Vice President None
Linda K. Grace Assistant Vice President None
Robert G. Greenly Vice President None
Jill Grossberg Assistant Vice President None
Jeffrey P. Gubala Vice President None
James E. Halloran Vice President None
Thomas W. Halloran Vice President None
Meghan C. Hannigan Assistant Vice President None
Bruce D. Harrington Assistant Vice President None
Marilyn M. Hausammann Senior Vice President None
Howard W. Hawkins, III Vice President None
Deanna R. Hayes-Castro Vice President None
Paul P. Heffernan Vice President None
Susan M. Heimanson Vice President None
Joanne Heyman Assistant Vice President None
Bess J.M. Hochstein Vice President None
Maureen A. Holmes Assistant Vice President None
Paula J. Hoyt Assistant Vice President None
William J. Hurley Senior Vice President None
Gregory E. Hyde Senior Vice President None
Dwight D. Jacobsen Senior Vice President None
Douglas B. Jamieson Senior Managing Director, Director None
Jay M. Johnson Vice President None
Kevin M. Joyce Senior Vice President None
Karen R. Kay Senior Vice President None
Mary E. Kearney Managing Director None
John P. Keating Vice President None
A. Siobahn Kelly Assistant Vice President None
Brian J. Kelly Vice President None
Anne Kinsman Assistnat Vice President None
Deborah H. Kirk Senior Vice President None
Jill A. Koontz Assistant Vice President None
Linda G. Kraunelis Assistant Vice President None
Howard H. Kreutzberg Senior Vice President None
Marjorie B. Krieger Assistant Vice President None
Charles Lacasia Assistant Vice President None
Arthur B. Laffer, Jr. Vice President None
Catherine A. Lathan Vice President None
James D. Lathrop Vice President None
Charles C. Ledbetter Vice President None
Kevin Lemire Assistant Vice President None
Eric S. Levy Vice President None
Edward V. Lewandowski Senior Vice President None
Edward V. Lewandowski, Jr. Vice President None
Samuel L. Lieberman Vice President None
David M. Lifsitz Assistant Vice President None
Ann Marie Linehan Assistant Vice President None
Maura A. Lockwood Vice President None
Rufino R. Lomba Vice President None
Peter V. Lucas Senior Vice President None
Robert F. Lucey Senior Managing Director, Director None
Kathryn A. Lucier Assistant Vice President None
Alana Madden Vice President None
Ann Malatos Assistant Vice President None
Bonnie Mallin Vice President None
Renee L. Maloof Assistant Vice President None
Frederick S. Marius Assistant Vice President None
Karen E. Marotta Vice President None
Kathleen M. McAnulty Assistant Vice President None
Anne B. McCarthy Assistant Vice President None
Paul McConville Vice President None
Marla J. McDougall Assistant Vice President None
Walter S. McFarland Vice President None
Mark J. McKenna Senior Vice President None
Gregory J. McMillan Vice President None
Claye A. Metelmann Vice President None
J. Chris Meyer Senior Vice President None
Bart D. Miller Vice President None
Douglas W. Miller Vice President None
Jeffery M. Miller Senior Vice President None
Ronald K. Mills Vice President None
Peter M. Moore Assistant Vice President None
Mitchell Moret Senior Vice President None
Donald E. Mullen Vice President None
Paul G. Murphy Assistant Vice President None
Brendan R. Murray Vice President None
Robert Nadherny Vice President None
Alexander L. Nelson Managing Director None
John P. Nickodemus Vice President None
Michael C. Noonis Assistant Vice President None
Kristen P. O'Brien Vice President None
Kevin L. O'Shea Senior Vice President None
Nathan D. O'Steen Assistant Vice President None
Joseph R. Palombo Managing Director None
Scott A. Papes Vice President None
Cynthia O. Parr Vice President None
John D. Pataccoli Vice President None
John G. Phoenix Vice President None
Joseph Phoenix Senior Vice President None
Jeffrey E. Place Senior Vice President None
Keith Plapinger Vice President None
Jane E. Price Assistant Vice President None
Douglas H. Powell Vice President None
Susannah Psomas Vice President None
Scott M. Pulkrabek Vice President None
George Putnam Director Chairman & President
George A. Rio Senior Vice President None
Debra V. Rothman Vice President None
Robert B. Rowe Vice President None
Kevin A. Rowell Senior Vice President None
Thomas C. Rowley Vice President None
Charles A. Ruys de Perez Senior Vice President None
Deborah A. Ryan Assistant Vice President None
Robert M. Santosuosso Assistant Vice President None
Debra J. Sarkisian Assistant Vice President None
Catherine A. Saunders Senior Vice President None
Robbin L. Saunders Assistant Vice President None
Karl W. Saur Vice President None
Michael Scanlon Assistant Vice President None
Shannon D. Schofield Vice President None
Christine A. Scordato Vice President None
Joseph W. Scott Assistant Vice President None
John B. Shamburg Vice President None
Kathleen G. Sharpless Managing Director None
John F. Sharry Managing Director None
Stuart D. Sheppard Assistant Vice President None
William N. Shiebler Director and President Vice President
Daniel S. Shore Vice President None
Mark J. Siebold Assistant Vice President None
Gordon H. Silver Senior Managing Director Vice President
John Skistimas, Jr. Assistant Vice President None
Steven Spiegel Senior Managing Director None
Nicholas T. Stanojev Senior Vice President None
Paul R. Stickney Vice President None
Brian L. Sullivan Vice President None
Guy Sullivan Seniior Vice President None
Kevin J. Sullivan Vice President None
Moira Sullivan Vice President None
James S. Tambone Managing Director None
B. Iris Tanner Assistant Vice President None
Louis Tasiopoulos Managing Director None
David S. Taylor Vice President None
John R. Telling Vice President None
Richard B. Tibbetts Senior Vice President None
Patrice M. Tirado Vice President None
Janet E. Tosi Assistant Vice President None
John C. Tredinnick Vice President None
Bonnie L. Troped Vice President None
Christine M. Twigg Assistant Vice Presient None
Larry R. Unger Vice President None
Douglas J. Vander Linde Senior Vice President None
Edward F. Whalen Vice President None
Robert J. Wheeler Senior Vice President None
John B. White Vice President None
Kirk E. Williamson Senior Vice President None
Leigh T. Williamson Vice President None
Jane Wolfson Vice President None
Benjamin I. Woloshin Vice President None
William H. Woolverton Senior Vice President None
Timothy R. Young Vice President None
SooHee L. Zebedee Vice President None
Laura J. Zografos Vice President None
</TABLE>
The principal business address of each person listed above is One
Post Office Square, Boston, MA 02109, except for:
Mr. Alpaugh, 5980 Richmond Highway, Alexandria, VA 22303
Mr. Anwar, 131 Crystal Road, Colmar, PA 18915
Mr. Avery, 7031 Spring Ridge Rd., Cary NC 27511
Mr. Baron, 31 Cala Moreya, Laguna Niguel, CA 92667
Mr. Bartlett, 7 Fairfield St., Boston, MA 02116
Mr. Beatty, 200 High St., Winchester, MA 01890
Mr. Beringer, 4915 Dupont Avenue South, Minneapolis, MN 55409
Ms. Besset, 1140 North LaSalle Blvd, Chicago, IL 60610
Mr. Bouchard, 18 Brice Rd., Annapolis, MD 21401
Mr. Brockelman, 94 Middleton Rd., Boxford, MA 01921
Mr. Brown, 2012 West Grove Drive, Gibson, PA 15044
Ms. Buckner, 21012 West Grove Drive, Gibsonia, PA 15044
Mr. Campagna, 2091-B Lake Park Drive, Smyrna, GA 30080
Ms. Castro, 26 Gould Road, Andover, MA 01810
Mr. Church, 4504 Sir Winston Place, Charlotte, NC 28211
Mr. Cristo, 11 Schenck Ave., Great Neck, NY 11021
Mr. Coneeny, 10 Amherst St., Arlington, MA 02174
Mr. Connelly, 4634 Mirada Way, Sarasota, FL 34238
Mr. Corvinus, 208 Water St., Newburyport, MA 01950
Ms. Dahill, 270-1 C Iven Ave., St. David's, PA 19087
Mr. Deliandis, 206 Promontory Drive, Newport Beach, CA 92660
Mr. DeSalvo, 54 Morriss Place, Maddison, NJ 07940
Mr. DeSimone, Pheasant Run Apartments, Inlet Ridge Drive,
Maryland Heights, MO 63043
Ms. Dwyer-Cabana, 7730 Herrick Park, Hudson, OH 44236
Mr. Edlin, 7 River Road, 305 Palmer Point, Cos Cob, CT 06807
Mr. English, 1184 Pintail Circle, Boulder, CO 80303
Mr. Goodman, 14 Clover Place, Cos Cob, CT 06807
Mr. Gubala, 4308 Rickover Drive, Dallas, TX 75244
Mr. J. Halloran, 978 W. Creek Lane, Westlake Village, CA 91362
Mr. T. Halloran, 19449 Misty Lake Dr., Strongsville, OH 44136
Mr. Hyde, 3305 Sulky, Marietta, GA 30067
Mr. Jacobsen, 2744 Joyce Ridge Drive, Chesterfield, MO 63017
Mr. Johnson, 200 Clock Tower Place, Carmel, CA 93923
Mr. Keating, 5521 Greenville Avenue, Dallas, TX 75206
Mr. Kelley, 3356 North Lakeharbor Lane, Boise, ID 83703
Ms. Kelly, 31 Jeffrey's Neck Road, Ipswich, MA 01938
Ms. Kinsman, 9599 Brookview Circle, Woodbury, MN 55125
Ms. Kirk, 124 Rivermist Dr., Buffalo, NY 14202
Ms. Kraunelis, 584 East Eighth St., South Boston, MA 02127
Mr. Lathrop, 14814 Straub Hill Lane, Chesterfield, MO 63017
Mr. Lewandowski, 805 Darrell Road, Hillsborough, CA 94010
Mr. Lewandowski, Jr., 1 Kara East, Irvine, CA 92720
Mr. Lieberman, 200 Roy St., Seattle, WA 98109
Ms. Madden, 8649 North Himes Avenue, Tampa, FL 33614
Mr. McConville, 515 S. Arlington Heights Rd., Arlington
Heights, IL 6005
Mr. McFarland, 8012 Dancing Fern Trail, Chattanooga, TN 37421
Mr. McMillan, 203 D. Zigler St., Zelienople, PA 16063
Mr. McMurtrie, 14529 Glastonbury, Detroit, MI 48223
Mr. B. Miller, 24815 Acropolis Drive, Mission Viejo, CA 92691
Mr. D. Miller, 70 Williams St., Greenwich, CT 06380
Mr. Moret, 4519 Lawn Avenue, Western Springs, IL 60558
Mr. Murray, 710 Cheyenne Drive, Franklin Lakes, NJ 07417
Mr. Nadherny, 9714 Marmount Drive, Seattle, WA 98117
Mr. Nickodemus, 463 Village Oaks Court, Ann Arbor, MI 48103
Mr. O'Steen, 2091-B Lake Park Drive, Smyrna, GA 30080
Mr. Papes, 3102 Wood View Bridge Drive, Kansas City, KS 66103
Mr. Pataccoli, 333 39th St., Manhattan Beach, CA 90266
Mr. Joe Phoenix, 1426 Asbury Avenue, Hubbard Woods, IL 60093
Mr. John Phoenix, 709 South Rome Avenue, Tampa, FL 33606
Mr. Place, 4211 Loch Highland Parkway, Roswell, GA 30075
Mr. Pulkrabek, 190 Jefferson Lane, Streamwood, IL 60107
Mr. Powell, 1508 Ruth Lane, Newport Beach, CA 92660
Mr. Rowe, 109 Shore Drive, Longwood, FL 32779
Mr. Rowell, 2240 Union St., San Francisco, CA 94123
Mr. Rowley, 237 Peeke Avenue, Kirkwood, MO 63122
Ms. Sarkisian, 1 Goodridge Ct., Boston, MA 02113
Ms. Saunders, 39939 Stevenson Common, Freemont, CA 94538
Ms. Schofield, 618 Rimington Lane, Decatur, GA 30030
Mr. Shamburg, 10603 N. 100th Street, Scottsdale, AZ 85260
Mr. Shore, 2870 Pharr Court South, N.W., Atlanta, GA 30305
Mr. Stickney, 1314 Log Cabin Lane, St. Louis, MO 63124
Mr. B. Sullivan, 777 Pinoake Road, Pittsburgh, PA 15243
Mr. G. Sullivan, 35 Marlborough St., Boston, MA 02116
Ms. M. Sullivan, 493 Zinfandel Lane, St. Helena, CA 94574
Ms. Sweeney, 31 Heritage Way, Marblehead, MA 01945
Mr. Tambone, 10 Commercial Wharf, Boston, MA 02110
Mr. Tasiopolous, 5 Homestead Farms Drive, Norwell, MA 02061
Mr. Tredinnick, 2995 Glenwood Drive, Boulder, CO 80301
Mr. Telling, 5 Spindriff Court, Williamsville, NY 14221
Mr. Unger, 212 E. Broadway, New York, NY 10002
Mr. Williamson, 111 Maple Ridge Way, Covington, LA 70433
Mr. White, 10 Mannion Place, Littleton, MA 01460
Mr. Woloshin, 100 West 89th St., New York, NY 10024
Ms. Zografos, 12712 Coeur de Monde Ct., St. Louis, MO 63146
<PAGE>
Item 30. Location of Accounts and Records
Persons maintaining physical possession of accounts,
books and other documents required to be maintained by Section
31(a) of the Investment Company Act of 1940 and the Rules
promulgated thereunder are Registrant's Clerk, Beverly Marcus;
Registrant's investment adviser, Putnam Investment Management,
Inc.; Registrant's principal underwriter, Putnam Mutual Funds
Corp.; Registrant's custodian, Putnam Fiduciary Trust Company
("PFTC"); and Registrant's transfer and dividend disbursing
agent, Putnam Investor Services, a division of PFTC. The address
of the Clerk, investment adviser, principal underwriter,
custodian and transfer and dividend disbursing agent is One Post
Office Square, Boston, Massachusetts 02109.
Item 31. Management Services
None.
Item 32. Undertakings
The Registrant undertakes to furnish to each person
to whom a prospectus of the Registrant is delivered a copy of the
Registrant's latest annual report to shareholders, upon request
and without charge.
<PAGE>
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference
in the Prospectuses and Statement of Additional Information
constituting parts of this Post-Effective Amendment No. 12 to the
Registration Statement on Form N-1A (File No. 2-98790) (the
"Registration Statement") of our reports dated September 14, 1995
and September 18, 1995, respectively, relating to the financial
statements and financial highlights appearing in the July 31,
1995 Annual Reports of Putnam Tax-Free Insured Fund and Putnam
Tax-Free High Yield Fund, which financial statements and
financial highlights are also incorporated by reference into the
Registration Statement. We also consent to the references to us
under the headings "Independent Accountants and Financial
Statements" in such Statement of Additional Information and under
the heading "Financial highlights" in such Prospectuses.
PRICE WATERHOUSE LLP
Boston, Massachusetts
December 1 , 1995
NOTICE
A copy of the Agreement and Declaration of Trust of
Putnam Tax-Free Income Trust is on file with the Secretary of
State of The Commonwealth of Massachusetts and notice is hereby
given that this instrument is executed on behalf of the
Registrant by an officer of the Registrant as an officer and not
individually and 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 relevant series of the Registrant.
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee of Putnam Tax-Free Income Trust,
hereby severally constitute and appoint George Putnam, Charles E.
Porter, Gordon H. Silver, Edward A. Benjamin, Timothy W. Diggins
and John W. Gerstmayr, and each of them singly, my true and
lawful attorneys, with full power to them and each of them, to
sign for me, and in my name and in the capacity indicated below,
the Registration Statement on Form N-1A of Putnam Tax-Free Income
Trust and any and all amendments (including post-effective
amendments) to said Registration Statement and to file the same
with all exhibits thereto, and other documents in connection
therewith, with the Securities and Exchange Commission, granting
unto my said attorneys, and each of them acting alone, full power
and authority to do and perform each and every act and thing
requisite or necessary to be done in the premises, as fully to
all intents and purposes as he might or could do in person, and
hereby ratify and confirm all that said attorneys or any of them
may lawfully do or cause to be done by virtue thereof.
WITNESS my hand and seal on the date set forth below.
Signature Title Date
/s/ Eli Shapiro
- --------------- Trustee April 19, 1995
Eli Shapiro
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933
and the Investment Company Act of 1940, the Registrant certifies
that it meets all of the requirements for effectiveness of this
Registration Statement pursuant to rule 485(b) under the
Securities Act of 1933 and has duly caused this Amendment to its
Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Boston,
and The Commonwealth of Massachusetts, on the 13th day of
December , 1995.
PUTNAM TAX-FREE INCOME TRUST
By: Gordon H. Silver, Vice
President
Pursuant to the requirements of the Securities Act of
1933, this Amendment to the Registration Statement of Putnam Tax-
Free Income Trust has been signed below by the following persons
in the capacities and on the dates indicated:
Signature Title
George Putnam President and Chairman of the Board;
Principal Executive Officer; Trustee
William F. Pounds Vice Chairman; Trustee
John D. Hughes Vice President; Treasurer and
Principal Financial Officer
Paul G. Bucuvalas Assistant Treasurer and Principal
Accounting Officer
Jameson A. Baxter Trustee
Hans H. Estin Trustee
John A. Hill Trustee
Elizabeth T. Kennan Trustee
Lawrence J. Lasser Trustee
Robert E. Patterson Trustee
Donald S. Perkins Trustee
<PAGE>
George Putnam, III Trustee
Eli Shapiro Trustee
A.J.C. Smith Trustee
W. Nicholas Thorndike Trustee
By: Gordon H. Silver, as Attorney-
in-Fact
December 13 , 1995
ROPES & GRAY
ONE INTERNATIONAL PLACE
BOSTON, MASSACHUSETTS 02110-2624
(617) 951-7000
December 13, 1995
Putnam Tax-Free Income Trust (the "Trust")
One Post Office Square
Boston, Massachusetts 02109
Ladies and Gentlemen:
You have informed us that you propose to offer and sell from
time to time 2,691,331 shares of beneficial interest in Putnam
Tax-Free Insured Fund and 960,973 shares of beneficial interest
in Putnam Tax-Free High Yield Fund, each a series of the Trust
(collectively, the "Shares"), for cash or securities at the net
asset value per share, determined in accordance with your Bylaws,
which Shares are in addition to your shares of beneficial
interest which you have previously offered and sold or which you
are currently offering.
We have examined copies of (i) your Agreement and
Declaration of Trust as on file at the office of the Secretary of
State of The Commonwealth of Massachusetts, which provides for an
unlimited number of authorized shares of beneficial interest, and
(ii) your Bylaws, which provide for the issue and sale by the
Trust of such Shares.
We assume that appropriate action will be taken to register
or qualify the sale of the Shares under any applicable state and
federal laws regulating offerings and sales of securities.
Based upon the foregoing, we are of the opinion that:
1. The Trust is a legally organized and validly existing
voluntary association with transferable shares of beneficial
interest under the laws of The Commonwealth of Massachusetts and
is authorized to issue an unlimited number of shares of
beneficial interest.
2. Upon the issue of any of the Shares referred to in the
first paragraph hereof for cash or securities at net asset value,
and the receipt of the appropriate consideration therefor as
provided in your Bylaws, such Shares so issued will be validly
issued, fully paid and nonassessable by the Trust.
<PAGE>
ROPES & GRAY
PUTNAM TAX-FREE INCOME TRUST -2- DECEMBER 13, 1995
The Trust is an entity of the type commonly known as a
"Massachusetts business trust". Under Massachusetts law,
shareholders could, under certain circumstances, be held
personally liable for the obligations of the Trust. However, the
Agreement and Declaration of Trust disclaims shareholder
liability for acts or obligations of the Trust and requires that
notice of such disclaimer be given in each agreement, obligation
or instrument entered into or executed by the Trust or its
Trustees. The Agreement and Declaration of Trust provides for
allocation of the assets and liabilities of the Trust among its
portfolio series, and further provides for indemnification out of
the property of a portfolio series for all loss and expense of
any shareholder held personally liable for the obligations of
such portfolio series solely by reason of his being or having
been a shareholder. Thus, the risk of a shareholder incurring
financial loss on account of shareholder liability is limited to
circumstances in which the assets of the relevant portfolio
series would be insufficient to meet such obligations.
We understand that this opinion is to be used in connection
with the registration of the Shares for offering and sale
pursuant to the Securities Act of 1933, as amended, and the
provisions of Rule 24e-2 under the Investment Company Act of
1940, as amended. We consent to the filing of this opinion with
and as a part of Post-Effective Amendment No. 13 to your
Registration Statement No. 2-98790.
Very truly yours,
Ropes & Gray
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM Putnam Tax Free Insured Fund Class A AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1995
<PERIOD-END> JUL-31-1995
<INVESTMENTS-AT-COST> 523,457,045
<INVESTMENTS-AT-VALUE> 551,443,265
<RECEIVABLES> 12,244,426
<ASSETS-OTHER> 286,839
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 563,974,530
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,274,007
<TOTAL-LIABILITIES> 2,274,007
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 541,634,539
<SHARES-COMMON-STOCK> 12,400,211
<SHARES-COMMON-PRIOR> 9,751,110
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (524,841)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (7,395,395)
<ACCUM-APPREC-OR-DEPREC> 27,986,220
<NET-ASSETS> 561,700,523
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 36,690,228
<OTHER-INCOME> 0
<EXPENSES-NET> 7,515,150
<NET-INVESTMENT-INCOME> 29,175,078
<REALIZED-GAINS-CURRENT> (2,373,727)
<APPREC-INCREASE-CURRENT> 8,753,042
<NET-CHANGE-FROM-OPS> 35,554,393
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (9,224,293)
<DISTRIBUTIONS-OF-GAINS> (50,968)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4,343,427
<NUMBER-OF-SHARES-REDEEMED> (2,061,211)
<SHARES-REINVESTED> 366,885
<NET-CHANGE-IN-ASSETS> (14,273,703)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 10,055
<OVERDISTRIB-NII-PRIOR> (778,138)
<OVERDIST-NET-GAINS-PRIOR> (4,830,414)
<GROSS-ADVISORY-FEES> 3,286,811
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 7,515,150
<AVERAGE-NET-ASSETS> 163,803,541
<PER-SHARE-NAV-BEGIN> 14.67
<PER-SHARE-NII> .82
<PER-SHARE-GAIN-APPREC> .19
<PER-SHARE-DIVIDEND> (.82)
<PER-SHARE-DISTRIBUTIONS> (.01)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.86
<EXPENSE-RATIO> .89
<AVG-DEBT-OUTSTANDING>0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM Putnam Tax Free Insured Fund Class B
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1995
<PERIOD-END> JUL-31-1995
<INVESTMENTS-AT-COST> 523,457,045
<INVESTMENTS-AT-VALUE> 551,443,265
<RECEIVABLES> 12,244,426
<ASSETS-OTHER> 286,839
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 563,974,530
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,274,007
<TOTAL-LIABILITIES> 2,274,007
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 541,634,539
<SHARES-COMMON-STOCK> 25,380,060
<SHARES-COMMON-PRIOR> 29,482,448
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (524,841)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (7,395,395)
<ACCUM-APPREC-OR-DEPREC> 27,986,220
<NET-ASSETS> 561,700,523
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 36,690,228
<OTHER-INCOME> 0
<EXPENSES-NET> 7,515,150
<NET-INVESTMENT-INCOME> 29,175,078
<REALIZED-GAINS-CURRENT> (2,373,727)
<APPREC-INCREASE-CURRENT> 8,753,042
<NET-CHANGE-FROM-OPS> 35,554,393
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (19,697,447)
<DISTRIBUTIONS-OF-GAINS> (140,286)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,875,400
<NUMBER-OF-SHARES-REDEEMED> (7,836,307)
<SHARES-REINVESTED> 858,519
<NET-CHANGE-IN-ASSETS> (14,273,703)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 10,055
<OVERDISTRIB-NII-PRIOR> (778,128)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3,286,811
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 7,515,150
<AVERAGE-NET-ASSETS> 393,683,985
<PER-SHARE-NAV-BEGIN> 14.68
<PER-SHARE-NII> .73
<PER-SHARE-GAIN-APPREC> .20
<PER-SHARE-DIVIDEND> (.73)
<PER-SHARE-DISTRIBUTIONS> (.01)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.87
<EXPENSE-RATIO> 1.54
<AVG-DEBT-OUTSTANDING>0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM Putnam Tax Free Insured Fund Class M
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1995
<PERIOD-END> JUL-31-1995
<INVESTMENTS-AT-COST> 523,457,045
<INVESTMENTS-AT-VALUE> 551,443,265
<RECEIVABLES> 12,244,426
<ASSETS-OTHER> 286,839
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 563,974,530
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,274,007
<TOTAL-LIABILITIES> 2,274,007
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 541,634,539
<SHARES-COMMON-STOCK> 1,163
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (524,841)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (7,395,395)
<ACCUM-APPREC-OR-DEPREC> 27,986,220
<NET-ASSETS> 561,700,523
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 36,690,228
<OTHER-INCOME> 0
<EXPENSES-NET> 7,515,150
<NET-INVESTMENT-INCOME> 29,175,078
<REALIZED-GAINS-CURRENT> (2,373,727)
<APPREC-INCREASE-CURRENT> 8,753,042
<NET-CHANGE-FROM-OPS> 35,554,393
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (41)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,161
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 2
<NET-CHANGE-IN-ASSETS> (14,273,703)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3,286,811
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 7,515,150
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 15.11
<PER-SHARE-NII> .12
<PER-SHARE-GAIN-APPREC> (.25)
<PER-SHARE-DIVIDEND> (.12)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.86
<EXPENSE-RATIO> .14
<AVG-DEBT-OUTSTANDING>0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM Putnam Tax Free High Yield Fund Class A
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1995
<PERIOD-END> JUL-31-1995
<INVESTMENTS-AT-COST> 1,834,355,568
<INVESTMENTS-AT-VALUE> 1,873,061,441
<RECEIVABLES> 56,358,943
<ASSETS-OTHER> 171,460
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,929,591,844
<PAYABLE-FOR-SECURITIES> 2,445,561
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 13,350,004
<TOTAL-LIABILITIES> 15,795,565
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,936,689,307
<SHARES-COMMON-STOCK> 33,600,985
<SHARES-COMMON-PRIOR> 25,394,226
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (3,337,732)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (58,261,178)
<ACCUM-APPREC-OR-DEPREC> 38,705,882
<NET-ASSETS> 1,913,796,279
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 140,969,969
<OTHER-INCOME> 0
<EXPENSES-NET> 25,417,572
<NET-INVESTMENT-INCOME> 115,552,397
<REALIZED-GAINS-CURRENT> (39,422,053)
<APPREC-INCREASE-CURRENT> 25,168,624
<NET-CHANGE-FROM-OPS> 101,298,968
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (27,401,547)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 12,577,731
<NUMBER-OF-SHARES-REDEEMED> 5,436,536
<SHARES-REINVESTED> 1,065,564
<NET-CHANGE-IN-ASSETS> 29,247,518
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (3,464,463)
<OVERDIST-NET-GAINS-PRIOR> (18,839,125)
<GROSS-ADVISORY-FEES> 10,082,299
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 25,417,572
<AVERAGE-NET-ASSETS> 406,418,361
<PER-SHARE-NAV-BEGIN> 14.24
<PER-SHARE-NII> .94
<PER-SHARE-GAIN-APPREC> (.10)
<PER-SHARE-DIVIDEND> (.94)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.14
<EXPENSE-RATIO> .87
<AVG-DEBT-OUTSTANDING>0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM Putnam Tax Free High Yield Fund
Class B AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1995
<PERIOD-END> JUL-31-1995
<INVESTMENTS-AT-COST> 1,834,355,568
<INVESTMENTS-AT-VALUE> 1,873,061,441
<RECEIVABLES> 56,358,943
<ASSETS-OTHER> 171,460
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,929,591,844
<PAYABLE-FOR-SECURITIES> 2,445,561
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 13,350,004
<TOTAL-LIABILITIES> 15,795,565
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,936,689,307
<SHARES-COMMON-STOCK> 101,591,475
<SHARES-COMMON-PRIOR> 106,941,561
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (3,337,732)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (58,261,178)
<ACCUM-APPREC-OR-DEPREC> 38,705,882
<NET-ASSETS> 1,913,796,279
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 140,969,969
<OTHER-INCOME> 0
<EXPENSES-NET> 25,417,572
<NET-INVESTMENT-INCOME> 115,552,397
<REALIZED-GAINS-CURRENT> (39,422,053)
<APPREC-INCREASE-CURRENT> 25,168,624
<NET-CHANGE-FROM-OPS> 101,298,968
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (87,980,365)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 21,898,422
<NUMBER-OF-SHARES-REDEEMED> (30,242,197)
<SHARES-REINVESTED> 2,993,689
<NET-CHANGE-IN-ASSETS> 29,247,518
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (3,464,463)
<OVERDIST-NET-GAINS-PRIOR> (18,839,125)
<GROSS-ADVISORY-FEES> 10,082,299
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 25,417,572
<AVERAGE-NET-ASSETS> 1,445,024,567
<PER-SHARE-NAV-BEGIN> 14.24
<PER-SHARE-NII> .85
<PER-SHARE-GAIN-APPREC> (.10)
<PER-SHARE-DIVIDEND> (.85)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.14
<EXPENSE-RATIO> 1.51
<AVG-DEBT-OUTSTANDING>0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
Putnam Tax Free High Yield Fund Class M AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1995
<PERIOD-END> JUL-31-1995
<INVESTMENTS-AT-COST> 1,834,355,568
<INVESTMENTS-AT-VALUE> 1,873,061,441
<RECEIVABLES> 56,358,943
<ASSETS-OTHER> 171,460
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,929,591,844
<PAYABLE-FOR-SECURITIES> 2,445,561
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 13,350,004
<TOTAL-LIABILITIES> 15,795,565
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,936,689,307
<SHARES-COMMON-STOCK> 164,963
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (3,337,732)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (58,261,178)
<ACCUM-APPREC-OR-DEPREC> 38,705,882
<NET-ASSETS> 1,913,796,279
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 140,969,969
<OTHER-INCOME> 0
<EXPENSES-NET> 25,417,572
<NET-INVESTMENT-INCOME> 115,552,397
<REALIZED-GAINS-CURRENT> (39,422,053)
<APPREC-INCREASE-CURRENT> 25,168,624
<NET-CHANGE-FROM-OPS> 101,298,968
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (43,754)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 165,046
<NUMBER-OF-SHARES-REDEEMED> (2,406)
<SHARES-REINVESTED> 2,323
<NET-CHANGE-IN-ASSETS> 29,247,518
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (3,464,463)
<OVERDIST-NET-GAINS-PRIOR> (18,839,125)
<GROSS-ADVISORY-FEES> 10,082,299
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 25,417,572
<AVERAGE-NET-ASSETS> 1,091,078
<PER-SHARE-NAV-BEGIN> 13.43
<PER-SHARE-NII> .58
<PER-SHARE-GAIN-APPREC> .70
<PER-SHARE-DIVIDEND> (.58)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.13
<EXPENSE-RATIO> .71
<AVG-DEBT-OUTSTANDING>0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
