PUTNAM HIGH YIELD ADVANTAGE FUND
Prospectus Supplement dated January 10, 1994 to
Prospectus dated April 1, 1993, as revised
October 1, 1993
On January 7, 1994, the Trustees approved a proposal to increase
the fees payable to Putnam Management under the Fund's Management
Contract. The proposed increase is subject to shareholder approval
and will be submitted to shareholders at a meeting scheduled for
May 5, 1994. If approved at that meeting, management fees would
thereafter be paid at the annual rate of 0.70% of the first $500
million of average net assets, 0.60% of the next $500 million,
0.55% of the next $500 million and 0.50% of any amount over $1.5
billion. If the proposed increase is not approved at the meeting,
this Supplement will be revised.
As a result of the proposed increase, the table and Example on page
3 of the Prospectus, as well as the paragraph following the
Example, are replaced by the following:
SHAREHOLDER TRANSACTION EXPENSES
Maximum Sales Charge Imposed on
Purchases (as a percentage of
offering price) 4.75%
Deferred Sales Charge
(as a percentage of the lower of
original purchase price or
redemption proceeds) NONE*
ANNUAL FUND OPERATING EXPENSES
(as a percentage of average net assets)
Management Fees 0.68 %
12b-1 Fees 0.25 %
Other Expenses 0.17 %
Total Fund Operating Expenses 1.10 %
EXAMPLE
Your investment of $1,000 would incur the following expenses,
assuming 5% annual return and redemption at the end of each period:
1 3 5 10
year years years years
$58 $81 $105 $175
* A deferred sales charge of up to 1.00% is assessed on certain
redemptions of shares that were purchased without an initial sales
charge as part of an investment of $1 million or more. See "How to
sell shares."
The table is provided to help you understand the expenses of
investing in the Fund and your share of the operating expenses
which the Fund incurs. The annual management fees shown in the
table have been restated to reflect a proposed increase in the
management fees payable to Putnam Management. Actual management
fees and total Fund operating expenses for the Fund's 1993 fiscal
year were 0.54% and 0.96%, respectively. The Example does not
represent past or future expense levels and actual expenses may be
greater or less than those shown. Federal regulations require the
Example to assume a 5% annual return, but actual annual return has
varied.
