PUTNAM HIGH YIELD ADVANTAGE FUND
Prospectus Supplement dated October 7, 1996
to Prospectuses dated April 1, 1996
The third paragraph under the heading "How the fund is managed"
is replaced with the following:
The following officer of Putnam Investment Management, Inc.
("Putnam Management") has had primary responsibility for the day-
to-day management of the fund's portfolio since the year stated
below:
BUSINESS EXPERIENCE
YEAR (AT LEAST 5 YEARS)
---- ---------------------
Rosemary H. Thomsen 1996 Employed as an investment
Senior Vice President professional by Putnam
Management since 1986.
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