Putnam High Yield Advantage Fund (the "fund")
Supplement dated June 27, 1997 to Statement of
Additional Information dated March 30, 1997
In connection with the offering of its shares in Japan, the fund
has undertaken to the Japanese Securities Dealers Association
that the fund will not: (1) invest more than 10% of its net
assets in securities that are not traded on an official exchange
or other regulated market, including, without limitation, the
National Association of Securities Dealers Automated Quotation
System (this restriction shall not be applicable to bonds
determined by Putnam Investment Management, Inc. to be liquid and
for which a market price (including a dealer quotation) is
generally obtainable or determinable); (2) borrow money in excess
of 10% of the value of its total assets; (3) invest more than 5%
of its total assets in the securities of any one issuer (other
than the U.S. or other sovereign government); (4) acquire more
than 10% of the outstanding voting securities of any issuer; and
(5) together with other mutual funds managed by Putnam Investment
Management, Inc., acquire more than 15% of the outstanding voting
securities of any issuer.
If the undertaking is violated, the fund will, promptly after
discovery, take such action as may be necessary to cause the
violation to cease, which shall be the only obligation of the
fund and the only remedy in respect of the violation. This
undertaking will remain in effect as long as shares of the fund
are qualified for offer or sale in Japan and such undertaking is
required by the Japanese Securities Dealers Association as a
condition of such qualification.
35193 6/97
