PUTNAM HIGH YIELD ADVANTAGE FUND
Prospectus Supplement dated December 1, 1994 to
Defined Contribution Plan Prospectus dated
April 1, 1994, as revised August 1, 1994
The Prospectus is revised as follows:
ORGANIZATION AND HISTORY
The second paragraph of the section entitled "Organization and
history" is replaced by the following:
The Fund is an open-end, diversified management investment
company with an unlimited number of authorized shares of
beneficial interest. Shares of the Fund may, without shareholder
approval, be divided into an unlimited number of series of shares
representing separate investment portfolios. Any such series of
shares may be divided without shareholder approval into two or
more classes of shares having such preferences and special or
relative rights and privileges as the Trustees determine. The
Fund's shares are not currently divided into series. The Fund's
shares are currently divided into three classes. Only the Fund's
Class A shares are offered by this Prospectus. Class B shares
are sold at net asset value, but are subject to a contingent
deferred sales charge upon redemption and bear a higher 12b-1 fee
than Class A shares. Class M shares are sold subject to an
initial sales charge and bear a higher 12b-1 fee than Class A
shares.
Each share has one vote, with fractional shares voting
proportionally. Shares of each class will vote together as a
single class except when required by law or as determined by the
Trustees. Shares are freely transferable, are entitled to
dividends as declared by the Trustees, and, if the Fund were
liquidated, would receive the net assets of the Fund. The Fund
may suspend the sale of shares at any time and may refuse any
order to purchase shares. Although the Fund is not required to
hold annual meetings of its shareholders, shareholders holding at
least 10% of the outstanding shares entitled to vote have the
right to call a meeting to elect or remove Trustees, or to take
other actions as provided in the Agreement and Declaration of
Trust.
