SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(a)
OF THE SECURITIES EXCHANGE ACT OF 1934
(Amendment No. )
----
Filed by the Registrant
/ X /
----
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Filed by a Party other than the Registrant
/ /
----
Check the appropriate box:
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/ X / Preliminary Proxy Statement
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/ / Preliminary Additional Materials
----
----
/ / Definitive Proxy Statement
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/ / Definitive Additional Materials
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/ / Soliciting Material Pursuant to Sec.
240.14a-11(e) or
---- Sec. 240.14a-12
PUTNAM ARIZONA TAX EXEMPT INCOME FUND
PUTNAM FLORIDA TAX EXEMPT INCOME FUND
PUTNAM MASSACHUSETTS TAX EXEMPT INCOME FUND
PUTNAM MICHIGAN TAX EXEMPT INCOME FUND
PUTNAM MINNESOTA TAX EXEMPT INCOME FUND
PUTNAM NEW JERSEY TAX EXEMPT INCOME FUND
PUTNAM OHIO TAX EXEMPT INCOME FUND
PUTNAM PENNSYLVANIA TAX EXEMPT INCOME FUND
(Name of Registrants as Specified In Their
Charters)
(Name of Persons Filing Proxy Statement)
Payment of Filing Fee (Check the appropriate box):
----
/ x / $125 per Exchange Act Rules 0-11(c)(1)(ii),
---- 14a-6(i)(1), or 14a-6(i)(2).
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/ / $500 per each party to the controversy
pursuant
---- to Exchange Act Rule 14a-6(i)(3).
----
/ / Fee computed on table below per Exchange Act
Rules
---- 14a-6(i)(4) and 0-11.
<PAGE>
(1) Title of each class of securities to
which
transaction applies:
(2) Aggregate number of securities to which
transaction applies:
(3) Per unit price or other underlying value
of
transaction computed pursuant to Exchange
Act Rule
0-11:
(4) Proposed maximum aggregate value of
transaction:
----
/ / Check box if any part of the fee is offset as
provided
---- by Exchange Act Rule 0-11(a)(2) and identify
the filing
for which the offsetting fee was paid
previously.
Identify the previous filing by registration
statement
number, or the Form or Schedule and the date
of its
filing.
(1) Amount Previously Paid:
(2) Form, Schedule or Registration Statement
No.:
(3) Filing Party:
(4) Date Filed:
<PAGE>
IMPORTANT INFORMATION
FOR SHAREHOLDERS IN
PUTNAM ARIZONA TAX EXEMPT INCOME FUND
PUTNAM FLORIDA TAX EXEMPT INCOME FUND
PUTNAM MASSACHUSETTS TAX EXEMPT INCOME FUND
PUTNAM MICHIGAN TAX EXEMPT INCOME FUND
PUTNAM MINNESOTA TAX EXEMPT INCOME FUND
PUTNAM NEW JERSEY TAX EXEMPT INCOME FUND
PUTNAM OHIO TAX EXEMPT INCOME FUND
PUTNAM PENNSYLVANIA TAX EXEMPT INCOME FUND
The document you hold in your hands contains your proxy
statement
and proxy card. A proxy card is, in essence, a ballot.
When you
vote your proxy, it tells us how to vote on your behalf
on
important issues relating to your fund. If you complete
and sign
the proxy, we'll vote it exactly as you tell us. If you
simply
sign the proxy, we'll vote it in accordance with the
Trustees'
recommendations on pages [ ] and [ ].
We urge you to spend a couple of minutes with the proxy
statement, fill out your proxy card, and return it to
us. When
shareholders don't return their proxies in sufficient
numbers, we
have to incur the expense of follow-up solicitations,
which can
cost your fund money.
We want to know how you would like to vote and welcome
your
comments. Please take a few moments with these
materials and
return your proxy to us.
(PUTNAM LOGO APPEARS HERE)
BOSTON * LONDON * TOKYO
<PAGE>
Table of contents
A Message from the Chairman
1
Notice of Shareholder Meeting
[2]
Trustees' Recommendations
[7]
Proxy card enclosed
If you have any questions, please contact us at the
special toll-
free number we have set up for you (1-800-225-1581) or
call your
financial adviser.
<PAGE>
A Message from the Chairman
(Photograph of George Putnam appears here)
Dear Shareholder:
I am writing to you to ask for your vote on important
questions
that affect your investment in your fund. While you
are, of
course, welcome to join us at your fund's meeting, most
shareholders cast their vote by filling out and signing
the
enclosed proxy. We are asking for your vote on the
following
matters:
1. Electing Trustees to oversee your fund;
2. Ratifying the selection by the Trustees of the
independent
auditors of your fund for its current fiscal year;
3. Approving amendments to certain of your fund's
fundamental
investment restrictions; and
4. Approving the elimination of certain of your fund's
fundamental investment restrictions.
Although we would like very much to have each
shareholder attend
their fund's meeting, we realize this is not possible.
Whether
or not you plan to be present, we need your vote. We
urge you to
complete, sign, and return the enclosed proxy card
promptly. A
postage-paid envelope is enclosed.
I'm sure that you, like most people, lead a busy life
and are
tempted to put this proxy aside for another day. Please
don't.
When shareholders do not return their proxies, their
fund may
have to incur the expense of follow-up solicitations.
All
shareholders benefit from the speedy return of proxies.
Your vote is important to us. We appreciate the time
and
consideration that I am sure you will give this
important matter.
If you have questions about the proposals, contact your
financial
adviser or call a Putnam customer service representative
at
1-800-225-1581.
Sincerely yours,
(signature of George
Putnam)
George Putnam, Chairman
<PAGE>
PUTNAM ARIZONA TAX EXEMPT INCOME FUND
PUTNAM FLORIDA TAX EXEMPT INCOME FUND
PUTNAM MASSACHUSETTS TAX EXEMPT INCOME FUND
PUTNAM MICHIGAN TAX EXEMPT INCOME FUND
PUTNAM MINNESOTA TAX EXEMPT INCOME FUND
PUTNAM NEW JERSEY TAX EXEMPT INCOME FUND
PUTNAM OHIO TAX EXEMPT INCOME FUND
PUTNAM PENNSYLVANIA TAX EXEMPT INCOME FUND
Notice of a Meeting of Shareholders
This is the formal agenda for your fund's shareholder
meeting.
It tells you what matters will be voted on and the time
and place
of the meeting, if you can attend in person.
To the Shareholders of Putnam Arizona Tax Exempt Income
Fund
(the "Arizona Fund"); Putnam Florida Tax Exempt Income
Fund
(the "Florida Fund"); Putnam Massachusetts Tax Exempt
Income Fund
(the "Massachusetts Fund"); Putnam Michigan Tax Exempt
Income
Fund (the "Michigan Fund"); Putnam Minnesota Tax Exempt
Income
Fund (the "Minnesota Fund"); Putnam New Jersey Tax
Exempt Income
Fund (the "New Jersey Fund"); Putnam Ohio Tax Exempt
Income Fund
(the "Ohio Fund"); and Putnam Pennsylvania Tax Exempt
Income Fund
(the "Pennsylvania Fund") (each a "fund" and,
collectively, the
"funds"):
A Meeting of Shareholders of your fund will be held on
December 5, 1996 at 2:00 p.m., Boston time, on the
eighth floor
of One Post Office Square, Boston, Massachusetts, to
consider the
following:
1. Electing Trustees. See page [ ].
2.A. Ratifying the selection by the Trustees of the
independent auditors of your fund for its
current fiscal
year. See page [ ]. (For Shareholders of
Arizona Fund,
Michigan Fund, New Jersey Fund and Ohio Fund
only)
2.B. Ratifying the selection by the Trustees of the
independent auditors of your fund for its
current fiscal
year. See page [ ]. (For Shareholders of
Florida Fund,
Massachusetts Fund, Minnesota Fund and
Pennsylvania Fund
only)
3.A. Approving an amendment to the fund's fundamental
investment restriction with respect to
diversification.
See page [ ]. (For Shareholders of
Massachusetts Fund,
Michigan Fund, Minnesota Fund and Ohio Fund
only)
3.B.1. Approving an amendment to the fund's fundamental
investment restriction with respect to
investments in the
<PAGE>
voting securities of a single issuer. See page
[ ].
(For Shareholders of Massachusetts Fund,
Michigan Fund,
Minnesota Fund, Ohio Fund and Pennsylvania Fund
only)
3.B.2. Approving an amendment to the fund's fundamental
investment restriction with respect to
investments in the
voting securities of a single issuer. See page
[ ].
(For Shareholders of Arizona Fund, Florida Fund
and New
Jersey Fund only)
3.C.1. Approving an amendment to the fund's fundamental
investment restriction with respect to making
loans. See
page [ ]. (For Shareholders of Florida Fund,
Massachusetts Fund, Michigan Fund, Minnesota
Fund, New
Jersey Fund, Ohio Fund and Pennsylvania Fund
only)
3.C.2. Approving an amendment to the fund's fundamental
investment restriction with respect to making
loans. See
page [ ]. (For Shareholders of Arizona Fund
only)
3.D. Approving an amendment to the fund's fundamental
investment restriction with respect to
investments in
real estate. See page [ ]. (For Shareholders
of
Massachusetts Fund, Michigan Fund, Minnesota
Fund, Ohio
Fund and Pennsylvania Fund only)
3.E.1. Approving an amendment to the fund's fundamental
investment restriction with respect to
concentration of
their assets. See page [ ]. (For Shareholders
of all
funds except Arizona Fund)
3.E.2. Approving an amendment to the fund's fundamental
investment restriction with respect to
concentration of
its assets. See page [ ]. (For Shareholders
of Arizona
Fund only)
3.F. Approving an amendment to the fund's fundamental
investment restriction with respect to senior
securities.
See page [ ]. (For Shareholders of all funds)
3.G.1. Approving an amendment to the fund's fundamental
investment restriction with respect to
investments in
commodities. See page [ ]. (For Shareholders
of
Florida Fund, New Jersey Fund and Pennsylvania
Fund only)
3.G.2. Approving an amendment to the fund's fundamental
investment restriction with respect to
investments in
commodities. See page [ ]. (For Shareholders
of
Massachusetts Fund, Michigan Fund, Minnesota
Fund and
Ohio Fund only)
<PAGE>
3.G.3. Approving an amendment to the fund's fundamental
investment restriction with respect to
investments in
commodities. See page [ ]. (For Shareholders
of
Arizona Fund only)
4.A. Approving the elimination of the fund's
fundamental
investment restriction with respect to
investments in
securities of issuers in which management of the
fund or
Putnam Investment Management owns securities.
See
Page [ ]. (For Shareholders of all funds)
4.B.1. Approving the elimination of the fund's
fundamental
investment restriction with respect to margin
transactions. See page [ ]. (For Shareholders
of
Florida Fund, New Jersey Fund and Pennsylvania
Fund only)
4.B.2. Approving the elimination of the fund's
fundamental
investment restriction with respect to margin
transactions. See page [ ]. (For Shareholders
of
Massachusetts Fund, Michigan Fund, Minnesota
Fund and
Ohio Fund only)
4.B.3. Approving the elimination of the fund's
fundamental
investment restriction with respect to margin
transactions. See page [ ]. (For Shareholders
of
Arizona Fund only)
4.C. Approving the elimination of the fund's
fundamental
investment restriction with respect to short
sales. See
page [ ]. (For Shareholders of all funds)
4.D.1. Approving the elimination of the fund's
fundamental
investment restriction with respect to pledging
assets.
See page [ ]. (For Shareholders of Florida
Fund,
Massachusetts Fund, Michigan Fund, Minnesota
Fund, Ohio
Fund and Pennsylvania Fund only)
4.D.2. Approving the elimination of the fund's
fundamental
investment restriction with respect to pledging
assets.
See page [ ]. (For Shareholders of New Jersey
Fund
only)
4.D.3. Approving the elimination of the fund's
fundamental
investment restriction with respect to pledging
assets.
See page [ ]. (For Shareholders of Arizona
Fund only)
4.E.1. Approving the elimination of the fund's
fundamental
investment restriction with respect to
investments in
restricted securities. See page [ ]. (For
Shareholders of all funds except Arizona Fund)
<PAGE>
4.E.2. Approving the elimination of the fund's
fundamental
investment restriction with respect to
investments in
restricted securities. See page [ ]. (For
shareholders
of Arizona Fund only)
4.F.1. Approving the elimination of the fund's
fundamental
investment restriction with respect to
investments in
certain oil, gas and mineral interests. See
page [ ].
(For Shareholders of Massachusetts Fund,
Michigan Fund,
Minnesota Fund, Ohio Fund and Pennsylvania Fund
only)
4.F.2. Approving the elimination of the fund's
fundamental
investment restriction with respect to
investments in
certain oil, gas and mineral interests. See
page [ ].
(For Shareholders of Florida Fund only)
4.F.3. Approving the elimination of the fund's
fundamental
investment restriction with respect to
investments in
certain oil, gas and mineral interests. See
page [ ].
(For Shareholders of New Jersey Fund only)
4.G. Approving the elimination of the fund's
fundamental
investment restriction with respect to investing
to gain
control of a company's management. See page [
]. (For
Shareholders of all funds)
4.H. Approving the elimination of the fund's
fundamental
investment restriction with respect to
investments in
other investment companies. See page [ ].
(For
Shareholders of New Jersey Fund only)
5. Transacting other business as may properly come
before
the meeting.
<PAGE>
By the Trustees
George Putnam, Chairman
William F. Pounds, Vice Chairman
Jameson A. Baxter Robert E. Patterson
Hans H. Estin Donald S. Perkins
John A. Hill George Putnam, III
Ronald J. Jackson Eli Shapiro
Elizabeth T. Kennan A.J.C. Smith
Lawrence J. Lasser W. Nicholas Thorndike
WE URGE YOU TO MARK, SIGN, DATE, AND MAIL THE ENCLOSED
PROXY IN
THE POSTAGE-PAID ENVELOPE PROVIDED SO YOU WILL BE
REPRESENTED AT
THE MEETING.
October 7, 1996
<PAGE>
Proxy Statement
This document will give you the information you need to
vote on
the matters listed on the previous pages. Much of the
information in the proxy statement is required under
rules of the
Securities and Exchange Commission ("SEC"); some of it
is
technical. If there is anything you don't understand,
please
contact us at our special toll-free number,
1-800-225-1581, or
call your financial adviser.
Who is asking for my vote?
The enclosed proxy is solicited by the Trustees of the
following
funds:
Putnam Arizona Tax Exempt Income Fund
Putnam Florida Tax Exempt Income Fund
Putnam Massachusetts Tax Exempt Income
Fund
Putnam Michigan Tax Exempt Income Fund
Putnam Minnesota Tax Exempt Income Fund
Putnam New Jersey Tax Exempt Income Fund
Putnam Ohio Tax Exempt Income Fund
Putnam Pennsylvania Tax Exempt Income
Fund
for use at the Meeting of Shareholders of each fund to
be held on
December 5, 1996, and, if your fund's meeting is
adjourned, at
any later meetings, for the purposes stated in the
Notice of
Meeting (see previous pages).
How do your fund's Trustees recommend that shareholders
vote on
these proposals?
The Trustees recommend that you vote
1. For the election of all nominees;
2.A. For selecting Coopers & Lybrand L.L.P. as
independent
auditors of your fund; (For Shareholders of
Arizona Fund,
Michigan Fund, New Jersey Fund and Ohio Fund
only)
2.B. For selecting Price Waterhouse LLP as
independent
auditors of your fund; (For Shareholders of
Florida Fund,
Massachusetts Fund, Minnesota Fund and
Pennsylvania Fund
only)
3.A. For amending the fund's fundamental investment
restriction with respect to diversification;
(For
Shareholders of Massachusetts Fund, Michigan
Fund,
Minnesota Fund and Ohio Fund only)
3.B.1. For amending the fund's fundamental investment
restriction with respect to investments in the
voting
<PAGE>
securities of a single issuer; (For Shareholders
of
Massachusetts Fund, Michigan Fund, Minnesota
Fund, Ohio
Fund and Pennsylvania Fund only)
3.B.2. For amending the fund's fundamental investment
restriction with respect to investments in the
voting
securities of a single issuer; (For Shareholders
of
Arizona Fund, Florida Fund and New Jersey Fund
only)
3.C.1 For amending the fund's fundamental investment
restriction with respect to making loans; (For
Shareholders of Florida Fund, Massachusetts
Fund,
Michigan Fund, Minnesota Fund, New Jersey Fund,
Ohio Fund
and Pennsylvania Fund only)
3.C.2. Approving an amendment to the fund's fundamental
investment restriction with respect to making
loans; (For
Shareholders of Arizona Fund only)
3.D. For amending the fund's fundamental investment
restriction with respect to investments in real
estate;
(For Shareholders of Massachusetts Fund,
Michigan Fund,
Minnesota Fund, Ohio Fund and Pennsylvania Fund
only)
3.E.1. For amending the fund's fundamental investment
restriction with respect to concentration of
their
assets; (For Shareholders of all funds except
Arizona
Fund)
3.E.2. For amending the fund's fundamental investment
restriction with respect to concentration of its
assets;
(For Shareholders of Arizona Fund only)
3.F. For amending the fund's fundamental investment
restriction with respect to senior securities;
(For
Shareholders of all funds)
3.G.1. For amending the fund's fundamental investment
restriction with respect to investments in
commodities;
(For Shareholders of Florida Fund, New Jersey
Fund and
Pennsylvania Fund only)
3.G.2. For amending the fund's fundamental investment
restriction with respect to investments in
commodities;
(For Shareholders of Massachusetts Fund,
Michigan Fund,
Minnesota Fund and Ohio Fund only)
3.G.3. For amending the fund's fundamental investment
restriction with respect to investments in
commodities;
(For Shareholders of Arizona Fund only)
<PAGE>
4.A. For eliminating the fund's fundamental
investment
restriction with respect to investments in
securities of
issuers in which management of the fund or
Putnam
Investment Management owns securities; (For
Shareholders
of all funds)
4.B.1. For eliminating the fund's fundamental
investment
restriction with respect to margin transactions;
(For
Shareholders of Florida Fund, New Jersey Fund
and
Pennsylvania Fund only)
4.B.2. For eliminating the fund's fundamental
investment
restriction with respect to margin transactions;
(For
Shareholders of Massachusetts Fund, Michigan
Fund,
Minnesota Fund and Ohio Fund only)
4.B.3. For eliminating the fund's fundamental
investment
restriction with respect to margin transactions;
(For
Shareholders of Arizona Fund only)
4.C. For eliminating the fund's fundamental
investment
restriction with respect to short sales; (For
Shareholders of all funds)
4.D.1. For eliminating the fund's fundamental
investment
restriction with respect to pledging assets;
(For
Shareholders of Florida Fund, Massachusetts
Fund,
Michigan Fund, Minnesota Fund, Ohio Fund and
Pennsylvania
Fund only)
4.D.2. For eliminating the fund's fundamental
investment
restriction with respect to pledging assets;
(For
Shareholders of New Jersey Fund only)
4.D.3. For eliminating the fund's fundamental
investment
restriction with respect to pledging assets;
(For
Shareholders of Arizona Fund only)
4.E.1. For eliminating the fund's fundamental
investment
restriction with respect to investments in
restricted
securities; (For Shareholders of all funds
except Arizona
Fund)
4.E.2. For eliminating the fund's fundamental
investment
restriction with respect to investments in
restricted
securities; (For Shareholders of Arizona Fund
only)
4.F.1. For eliminating the fund's fundamental
investment
restriction with respect to investments in
certain oil,
gas and mineral interests; (For Shareholders of
Massachusetts Fund, Michigan fund, Minnesota
Fund, Ohio
Fund and Pennsylvania Fund only)
<PAGE>
4.F.2. For eliminating the fund's fundamental
investment
restriction with respect to investments in
certain oil,
gas and mineral interest; (For Shareholders of
Florida
Fund only)
4.F.3. For eliminating the fund's fundamental
investment
restriction with respect to investments in
certain oil,
gas and mineral interests; (For Shareholders of
New
Jersey Fund only)
4.G. For eliminating the fund's fundamental
investment
restriction with respect to investing to gain
control of
a company's management; and (For Shareholders of
all
funds)
4.H. For eliminating the fund's fundamental
investment
restriction with respect to investments in other
investment companies. (For Shareholders of New
Jersey
Fund only)
Who is eligible to vote?
Shareholders of record at the close of business on
September 6,
1996, are entitled to be present and to vote at the
meeting of
their fund or any adjourned meeting. The Notice of
Meeting, the
proxy, and the Proxy Statement have been mailed to
shareholders
of record on or about October 7, 1996.
Each share is entitled to one vote. Shares represented
by duly
executed proxies will be voted in accordance with
shareholders'
instructions. If you sign the proxy, but don't fill in
a vote,
your shares will be voted in accordance with the
Trustees'
recommendations. If any other business is brought
before your
fund's meeting, your shares will be voted at the
Trustees'
discretion.
Shares of each fund will vote separately with respect to
each of
the proposals set forth below.
The Proposals
I. ELECTION OF TRUSTEES
Who are the nominees for Trustees?
The Nominating Committee of the Trustees recommends that
the
number of Trustees be fixed at fourteen and that you
vote for the
election of the nominees described below. Each nominee
is
currently a Trustee of your fund and of the other Putnam
funds.
<PAGE>
The Nominating Committee of the Trustees consists solely
of
Trustees who are not "interested persons" (as defined in
the
Investment Company Act of 1940) of your fund or of
Putnam
Investment Management, Inc., your fund's investment
manager
("Putnam Management").
Jameson Adkins Baxter
[Insert Picture]
Ms. Baxter, age 53, is the President of Baxter
Associates, Inc.,
a management and financial consulting firm which she
founded in
1986. During that time, she was also a Vice President
and
Principal of the Regency Group, Inc., and a Consultant
to First
Boston Corporation, both of which are investment banking
firms.
From 1965 to 1986, Ms. Baxter held various positions in
investment banking and corporate finance at First
Boston.
Ms. Baxter currently also serves as a Director of Banta
Corporation, Avondale Federal Savings Bank, and ASHTA
Chemicals,
Inc. She is also the Chairman Emeritus of the Board of
Trustees
of Mount Holyoke College, having previously served as
Chairman
for five years and as a Board member for thirteen years;
an
Honorary Trustee and past President of the Board of
Trustees of
the Emma Willard School; and Chair of the Board of
Governors of
Good Shepherd Hospital. Ms. Baxter is a graduate of
Mount
Holyoke College.
Hans H. Estin
[Insert Picture]
Mr. Estin, age 68, is a Chartered Financial Analyst and
the Vice
Chairman of North American Management Corp., a
registered
investment adviser serving individual clients and their
families.
Mr. Estin currently also serves as a Director of The
Boston
Company, Inc., a registered investment adviser which
provides
administrative and investment management services to
mutual funds
and other institutional investors, and Boston Safe
Deposit and
Trust Company; a Corporation Member of Massachusetts
General
Hospital; and a Trustee of New England Aquarium. He
previously
served as the Chairman of the Board of Trustees of
Boston
University and is currently active in various other
civic
associations, including the Boys & Girls Clubs of
Boston, Inc.
Mr. Estin is a graduate of Harvard College and holds
honorary
doctorates from Merrimack College and Boston University.
<PAGE>
John A. Hill
[Insert Picture]
Mr. Hill, age 54, is the Chairman and Managing Director
of First
Reserve Corporation, a registered investment adviser
investing in
companies in the world-wide energy industry on behalf of
institutional investors.
Prior to acquiring First Reserve in 1983, Mr. Hill held
executive
positions with several investment advisory firms and
held various
positions with the Federal government, including
Associate
Director of the Office of Management and Budget and
Deputy
Administrator of the Federal Energy Administration.
Mr. Hill currently also serves as a Director of Snyder
Oil
Corporation, an exploration and production company which
he
founded, Maverick Tube Corporation, a manufacturer of
structural
steel, pipe and well casings, PetroCorp Incorporated, an
exploration and production company, Weatherford Enterra,
Inc., an
oil field service company, various private companies
controlled
by First Reserve Corporation, and various First Reserve
Funds.
He is also a Member of the Board of Advisors of Fund
Directions.
He is currently active in various business associations,
including the Economic Club of New York, and lectures on
energy
issues in the United States and Europe. Mr. Hill is a
graduate
of Southern Methodist University.
Ronald J. Jackson
[Insert Picture]
Mr. Jackson, age 52, was Chairman of the Board,
President and
Chief Executive Officer of Fisher-Price, Inc., a major
toy
manufacturer, from 1990 to 1993. He previously served
as
President and Chief Executive Officer of Stride-Rite,
Inc., a
manufacturer and distributor of footwear, from 1989 to
1990, and
as President and Chief Executive Officer of Kenner
Parker Toys,
Inc., a major toy and game manufacturer, from 1985 to
1987.
Prior to that, he held various financial and marketing
positions
at General Mills, Inc. from 1966 to 1985, including Vice
President, Controller and Vice President of Marketing
for Parker
Brothers, a toy and game company, and President of
Talbots, a
retailer and direct marketer of women's apparel.
Mr. Jackson currently serves as a Director of Safety
1st, Inc., a
company which markets a wide range of child care and
safety
products. He also serves as a Trustee of Salem Hospital
and an
Overseer of the Peabody Essex Museum. He previously
served as a
Director of a number of public companies including
Fisher-Price,
Inc., Kenner Parker Toys, Inc., Stride-Rite, Inc., and
Mattel,
Inc., a major toy manufacturer. Mr. Jackson is a
graduate of
Michigan State University Business School.
<PAGE>
Elizabeth T. Kennan
[Insert Picture]
Ms. Kennan, age 58, is President Emeritus and Professor
of Mount
Holyoke College. From 1978 through June 1995, she was
President
of Mount Holyoke College. From 1966 to 1978, she was on
the
faculty of Catholic University, where she taught history
and
published numerous articles.
Ms. Kennan currently also serves as a Director of NYNEX
Corporation, a telecommunications company, Northeast
Utilities,
the Kentucky Home Life Insurance Companies, and Talbots.
She
also serves as a Member of The Folger Shakespeare
Library
Committee. She is currently active in various
educational and
civic associations, including the Committee on Economic
Development and the Council on Foreign Relations. Ms.
Kennan is
a graduate of Mount Holyoke College, the University of
Washington
and St. Hilda College at Oxford University and holds
several
honorary doctorates.
Lawrence J. Lasser*
[Insert Picture]
Mr. Lasser, age 53, is the Vice President of your fund
and the
other Putnam funds. He has been the President, Chief
Executive
Officer and a Director of Putnam Investments, Inc. and
Putnam
Management since 1985, having begun his career there in
1969.
Mr. Lasser currently also serves as a Director of Marsh
&
McLennan Companies, Inc., the parent company of Putnam
Management, and INROADS/Central New England, Inc., a job
market
internship program for minority high school and college
students.
He is a Member of the Board of Overseers of the Museum
of
Science, the Museum of Fine Arts and the Isabella
Stewart Gardner
Museum in Boston. He is also a Trustee of the Beth
Israel
Hospital and Buckingham, Browne and Nichols School. Mr.
Lasser
is a graduate of Antioch College and Harvard Business
School.
Robert E. Patterson
[Insert Picture]
Mr. Patterson, age 51, is the Executive Vice President
and
Director of Acquisitions of Cabot Partners Limited
Partnership, a
registered investment adviser which manages real estate
investments for institutional investors. Prior to 1990,
he was
the Executive Vice President of Cabot, Cabot & Forbes
Realty
Advisors, Inc., the predecessor company of Cabot
Partners. Prior
to that, he was a Senior Vice President of the Beal
Companies, a
real estate management, investment and development
company. He
<PAGE>
has also worked as an attorney and held various
positions in
state government, including the founding Executive
Director of
the Massachusetts Industrial Finance Agency.
Mr. Patterson currently also serves as Chairman of the
Joslin
Diabetes Center and as a Director of Brandywine Trust
Company.
Mr. Patterson is a graduate of Harvard College and
Harvard Law
School.
Donald S. Perkins*
[Insert Picture]
Mr. Perkins, age 69, is the retired Chairman of the
Board of
Jewel Companies, Inc., a diversified retailer, where
among other
roles he served as President, Chief Executive Officer
and
Chairman of the Board from 1965 to 1980. He currently
also
serves as a Director of various other public
corporations,
including AON Corp., an insurance company, Cummins
Engine
Company, Inc., an engine and power generator equipment
manufacturer and assembler, Current Assets L.L.C., a
corporation
providing financial staffing services, Illinova and
Illinois
Power Co., Inland Steel Industries, Inc., LaSalle Street
Fund,
Inc., a real estate investment trust, Lucent
Technologies Inc.,
Springs Industries, Inc., a textile manufacturer, and
Time
Warner, Inc., one of the nation's largest media
conglomerates.
He previously served as a Director of several other
major public
corporations, including Corning Glass Works, Eastman
Kodak
Company, Firestone Tire & Rubber Company and Kmart
Corporation.
Mr. Perkins currently also serves as a Trustee and Vice
Chairman
of Northwestern University and as a Trustee of the
Hospital
Research and Education Trust. He is currently active in
various
civic and business associations, including the Business
Council
and the Civic Committee of the Commercial Club of
Chicago, of
which he is the founding Chairman. Mr. Perkins is a
graduate of
Yale University and Harvard Business School and holds an
honorary
doctorate from Loyola University of Chicago.
William F. Pounds
[Insert Picture]
Dr. Pounds, age 68, is the Vice Chairman of your fund
and of the
other Putnam funds. He has been a Professor of
Management at the
Alfred P. Sloan School of Management at the
Massachusetts
Institute of Technology since 1961 and served as Dean of
that
School from 1966 to 1980. He previously served as
Senior Advisor
to the Rockefeller Family and Associates and was a past
Chairman
of Rockefeller & Co., Inc., a registered investment
adviser which
manages Rockefeller family assets, and Rockefeller Trust
Company.
<PAGE>
Dr. Pounds currently also serves as a Director of IDEXX
Laboratories, Inc., EG&G, Inc., Perceptive Biosystems,
Inc.,
Management Sciences For Health, Inc. and Sun Company,
Inc. He is
also a Trustee of the Museum of Fine Arts in Boston; an
Overseer
of WGBH Educational Foundation, and a Fellow of The
American
Academy of Arts and Sciences. He previously served as a
Director
of Fisher-Price, Inc. and General Mills, Inc. Dr.
Pounds is a
graduate of Carnegie-Mellon University.
George Putnam*
[Insert Picture]
Mr. Putnam, age 70, is the Chairman and President of
your fund
and of the other Putnam funds. He is the Chairman and a
Director
of Putnam Management and Putnam Mutual Funds Corp. and a
Director
of Marsh & McLennan, their parent company. Mr. Putnam
is the son
of the founder of the Putnam funds and Putnam Management
and has
been employed in various capacities by Putnam Management
since
1951, including Chief Executive Officer from 1961 to
1973. He is
a former Overseer and Treasurer of Harvard University; a
past
Chairman of the Harvard Management Company; and a
Trustee
Emeritus of Wellesley College and Bradford College.
Mr. Putnam currently also serves as a Director of The
Boston
Company, Inc., Boston Safe Deposit and Trust Company,
Freeport-
McMoRan, Inc., Freeport Copper and Gold, Inc., McMoRan
Oil and
Gas, Inc., mining and natural resources companies,
General Mills,
Inc., Houghton Mifflin Company, a major publishing
company, and
Rockefeller Group, Inc., a real estate manager. He is
also a
Trustee of Massachusetts General Hospital, McLean
Hospital,
Vincent Memorial Hospital, WGBH Educational Foundation
and the
Museum of Fine Arts and the Museum of Science in Boston;
the New
England Aquarium; an Overseer of Northeastern
University; and a
Fellow of The American Academy of Arts and Sciences.
Mr. Putnam
is a graduate of Harvard College and Harvard Business
School and
holds honorary doctorates from Bates College and Harvard
University.
George Putnam, III*
[Insert Picture]
Mr. Putnam, age 45, is the President of New Generation
Research,
Inc., a publisher of financial advisory and other
research
services relating to bankrupt and distressed companies,
and New
Generation Advisers, Inc., a registered investment
adviser which
provides advice to private funds specializing in
investments in
such companies. Prior to founding New Generation in
1985, Mr.
Putnam was an attorney with the Philadelphia law firm
Dechert
Price & Rhoads.
<PAGE>
Mr. Putnam currently also serves as a Director of the
Massachusetts Audubon Society. He is also a Trustee of
the Sea
Education Association and St. Mark's School and an
Overseer of
the New England Medical Center. Mr. Putnam is a
graduate of
Harvard College, Harvard Business School and Harvard Law
School.
Eli Shapiro
[Insert Picture]
Dr. Shapiro, age 80, is the Alfred P. Sloan Professor of
Management, Emeritus at the Alfred P. Sloan School of
Management
at the Massachusetts Institute of Technology, having
served on
the faculty of the Sloan School for eighteen years. He
previously was also on the faculty of Harvard Business
School,
The University of Chicago School of Business and
Brooklyn
College. During his academic career, Dr. Shapiro
authored
numerous publications concerning finance and related
topics. He
previously served as the President and Chief Executive
Officer of
the National Bureau of Economic Research and also
provided
economic and financial consulting services to various
clients.
Dr. Shapiro is a past Director of many companies,
including
Nomura Dividend Income Fund, Inc., a privately held
registered
investment company managed by Putnam Management, Reece
Corporation, a sewing machine manufacturer, Commonwealth
Mortgage, Dexter Corporation, a manufacturer of plastics
and
related products, Avis Corporation, a car rental
company,
Connecticut Bank and Trust Company, Connecticut National
Gas
Corporation, the Federal Home Loan Bank of Boston, where
he
served as Chairman from 1977 to 1989, Travelers'
Corporation, an
insurance company, and Norlin Corporation, a musical
instrument
manufacturer; and a past Trustee of Mount Holyoke
College and the
Putnam funds (from 1984 to 1989).
Dr. Shapiro is a Fellow of The American Academy of Arts
and
Sciences and is active in various professional and civic
associations, including the American Economic
Association, the
American Finance Association and the Council on Foreign
Relations. Dr. Shapiro is a graduate of Brooklyn
College and
Columbia University.
A.J.C. Smith*
[Insert Picture]
Mr. Smith, age 62, is the Chairman and Chief Executive
Officer of
Marsh & McLennan Companies, Inc. He has been employed
by Marsh &
McLennan and related companies in various capacities
since 1961.
Mr. Smith is a Director of the Trident Corp., and he
also serves
as a Trustee of the Carnegie Hall Society, the Central
Park
Conservancy, The American Institute for Chartered
Property
<PAGE>
Underwriters, and is a Founder of the Museum of Scotland
Society.
He was educated in Scotland and is a Fellow of the
Faculty of
Actuaries in Edinburgh, a Fellow of the Canadian
Institute of
Actuaries, a Fellow of the Conference of Actuaries in
Public
Practice, an Associate of the Society of Actuaries, a
Member of
the American Academy of Actuaries, the International
Actuarial
Association and the International Association of
Consulting
Actuaries.
W. Nicholas Thorndike**
[Insert Picture]
Mr. Thorndike, age 63, serves as a Director of various
corporations and charitable organizations, including
Data General
Corporation, a computer and high technology company,
Bradley Real
Estate, Inc., a real estate investment firm, Providence
Journal
Co., a newspaper publisher and owner of television
stations, and
Courier Corporation, a book binding and printing
company. He is
also a Trustee of Eastern Utilities Associates,
Massachusetts
General Hospital, where he previously served as chairman
and
president, and Northeastern University.
Prior to December 1988, he was the Chairman of the Board
and
Managing Partner of Wellington Management
Company/Thorndike,
Doran, Paine & Lewis, a registered investment adviser
which
manages mutual funds and institutional assets. He also
previously served as a Trustee of the Wellington Group
of Funds
(now The Vanguard Group) and was the Chairman and a
Director of
Ivest Fund, Inc. Mr. Thorndike is a graduate of Harvard
College.
----------------------------
* Nominees who are or may be deemed to be
"interested
persons" (as defined in the Investment Company
Act of
1940) of your fund, Putnam Management, and
Putnam Mutual
Funds Corp. ("Putnam Mutual Funds"), the
principal
underwriter for all the open-end Putnam funds
and an
affiliate of Putnam Management. Messrs. Putnam,
Lasser,
and Smith are deemed "interested persons" by
virtue of
their positions as officers or shareholders of
your fund,
or directors of Putnam Management, Putnam Mutual
Funds,
or Marsh & McLennan Companies, Inc., the parent
company
of Putnam Management and Putnam Mutual Funds.
Mr. George
Putnam, III, Mr. Putnam's son, is also an
"interested
person" of your fund, Putnam Management, and
Putnam
Mutual Funds. Mr. Perkins may be deemed to be
an
"interested person" of your fund because of his
service
as a director of a certain publicly held company
that
includes registered broker-dealer firms among
its
subsidiaries. Neither your fund nor any of the
other
<PAGE>
Putnam funds currently engages in any
transactions with
such firms except that certain of such firms act
as
dealers in the retail sale of shares of certain
Putnam
funds in the ordinary course of their business.
The
balance of the nominees are not "interested
persons."
** In February 1994 Mr. Thorndike accepted
appointment as a
successor trustee of certain private trusts in
which he
has no beneficial interest. At that time he
also became
Chairman of the Board of two privately owned
corporations
controlled by such trusts, serving in that
capacity until
October 1994. These corporations filed
voluntary
petitions for relief under Chapter 11 of the
U.S.
Bankruptcy Code in August 1994.
Except as indicated above, the principal occupations and
business
experience of the nominees for the last five years have
been with
the employers indicated, although in some cases they
have held
different positions with those employers. Except for
Ms. Baxter,
Dr. Shapiro and Mr. Jackson, all the nominees were
elected by the
shareholders of Michigan Fund, Minnesota Fund and Ohio
Fund in
May 1992; for Massachusetts Fund in July 1992 and for
Florida
Fund and Pennsylvania Fund in July 1993. Ms. Baxter,
Dr. Shapiro
and Mr. Jackson were elected by the Trustees of each
fund in
January 1994, April 1995 and May 1996, respectively.
All the
nominees were elected by the shareholders of New Jersey
Fund in
July 1994, except for Dr. Shapiro and Mr. Jackson, who
were
elected by the Trustees of that fund in April 1995 and
May 1996,
respectively. Except for Mr. Jackson, all the nominees
were
elected by the shareholders of Arizona Fund in May 1995.
Mr. Jackson was elected by the Trustees of that fund in
May 1996.
As indicated above, Dr. Shapiro also previously served
as a
Trustee of the Putnam funds from 1984 to 1989. The 14
nominees
for election as Trustees at the shareholder meeting of
your fund
who receive the greatest number of votes will be elected
Trustees
of your fund. The Trustees serve until their successors
are
elected and qualified. Each of the nominees has agreed
to serve
as a Trustee if elected. If any of the nominees is
unavailable
for election at the time of the meeting, which is not
anticipated, the Trustees may vote for other nominees at
their
discretion, or the Trustees may recommend that the
shareholders
fix the number of Trustees at less than 14 for your
fund.
What are the Trustees' responsibilities?
Each fund's Trustees are responsible for the general
oversight of
each fund's business and for assuring that each fund is
managed
in the best interests of its shareholders. The Trustees
periodically review each fund's investment performance
as well as
the quality of other services provided to each fund and
its
shareholders by Putnam Management and its affiliates,
including
administration, custody, distribution and investor
servicing. At
<PAGE>
least annually, the Trustees review the fees paid to
Putnam
Management and its affiliates for these services and the
overall
level of each fund's operating expenses. In carrying
out these
responsibilities, the Trustees are assisted by an
independent
administrative staff and by each fund's auditors and
legal
counsel, which are selected by the Trustees and are
independent
of Putnam Management and its affiliates.
Do the Trustees have a stake in your fund?
The Trustees believe it is important that each Trustee
have a
significant investment in the Putnam funds. The
Trustees
allocate their investments among the more than 99 Putnam
funds
based on their own investment needs. The Trustees'
aggregate
investments in the Putnam funds total over $47 million.
The
table below lists each Trustee's current investments in
the fund
and in the Putnam funds as a group.
<PAGE>
Share Ownership by Trustees as of June 28,
1996*
Year
Number
first
of shares
elected
owned
as
of all
Trustee
Putnam
of
funds**
Putnam ArizonaFloridaMassachusetts
MichiganMinnesotaNew Ohio Pennsylvania
Trustees funds Fund Fund Fund Fund
Fund Jersey Fund
Fund Fund
Jameson 1994 110 110 111 110 110
114 110 111 24,102
A.
Baxter
Hans 1972 132 140 255 260 248
141 258 139 26,270
H.
Estin
John 1985 132 137 388 387 234
141 243 139 123,624
A.
Hill
Ronald 1996 170 169 2,756 170 171
172 171 165 12,209
J.
Jackson
Elizabeth 1992 110 248 210 110 110
126 110 121 27,475
T.
Kennan
Lawrence 1992 107 121 100 261 258
129 262 121 451,608
J.
Lasser
Robert 1984 114 100 167 114 114
103 114 101 60,322
E.
Patterson
Donald 1982 326 328 422 400 377
352 407 352 160,110
S.
Perkins
William 1971 159 165 7,200 375 364
166 378 180 348,913
F.
Pounds
George 1957 1,356 1,372 36,518 (1) 2,027 1,969
887 2,051 891 1,516,577
Putnam
George 1984 138 140 14,307 (2) 644 616
141 642 484 287,830
Putnam,
III
Eli 1995***-- -- 39,072 -- --
-- -- -- 80,677
Shapiro
A.J.C. 1986 139 141 369 368 357
151 367 156 35,339
Smith
W. 1992 110 121 58,398 130 129
129 131 121 79,113
Nicholas
Thorndike
* Except as noted below, each Trustee has sole
investment power and sole voting power
with respect to his or her shares of the funds.
** These holdings do not include shares of Putnam
money market funds.
*** Dr. Shapiro previously served as a Trustee of the
Putnam funds from 1984 to 1989.
(1) Mr. Putnam has shared voting power and shared
investment power with respect to 13,670
of his shares of Massachusetts Fund.
(2) Mr. Putnam, III has shared voting power and shared
investment power with respect to
13,670 of these shares of the Massachusetts Fund,
in which he has no present economic
interest.
As of June 28, 1996, the Trustees and officers of the
funds owned the following number of
shares of each fund: Arizona Fund, 3,104; Florida Fund,
3,292; Massachusetts Fund, 236,216;
Michigan Fund, 5,357; Minnesota Fund, 5,056; New Jersey
Fund, 2,751; Ohio Fund 5,246; and
Pennsylvania Fund, 3,080; comprising less than 1% of the
outstanding shares of each respective
fund on that date.
<PAGE>
What are some of the ways in which the Trustees
represent
shareholder interests?
The Trustees believe that, as substantial investors in
the Putnam
funds, their interests are closely aligned with those of
individual shareholders. Among other ways, the Trustees
seek to
represent shareholder interests:
* by carefully reviewing each fund's investment
performance on an individual basis with each
fund's
managers;
* by also carefully reviewing the quality of the
various
other services provided to the funds and their
shareholders by Putnam Management and its
affiliates;
* by discussing with senior management of Putnam
Management steps being taken to address any
performance
deficiencies;
* by reviewing the fees paid to Putnam
Management to
ensure that such fees remain reasonable and
competitive
with those of other mutual funds, while at the
same
time providing Putnam Management sufficient
resources
to continue to provide high quality services
in the
future;
* by monitoring potential conflicts between the
funds and
Putnam Management and its affiliates to ensure
that the
funds continue to be managed in the best
interests of
their shareholders;
* by also monitoring potential conflicts among
funds to
ensure that shareholders continue to realize
the
benefits of participation in a large and
diverse family
of funds.
How often do the Trustees meet?
The Trustees meet each month (except August) over a
two-day
period to review the operations of each fund and of the
other
Putnam funds. A portion of these meetings is devoted to
meetings
of various Committees of the board which focus on
particular
matters. These include: the Contract Committee, which
reviews
all contractual arrangements with Putnam Management and
its
affiliates; the Communication and Service Committee,
which
reviews the quality of services provided by each fund's
investor
servicing agent, custodian and distributor; the Pricing,
Brokerage and Special Investments Committee, which
reviews
matters relating to valuation of securities, best
execution,
brokerage costs and allocations and new investment
techniques;
the Audit Committee, which reviews accounting policies
and the
adequacy of internal controls and supervises the
engagement of
the funds' auditors; the Compensation, Administration
and Legal
<PAGE>
Affairs Committee, which reviews the compensation of the
Trustees
and their administrative staff and supervises the
engagement of
the funds' independent counsel; and the Nominating
Committee,
which is responsible for selecting nominees for election
as
Trustees.
Each Trustee generally attends at least two formal
committee
meetings during such monthly meeting of the Trustees.
During
1995, the average Trustee participated in approximately
40
committee and board meetings. In addition, the Trustees
meet in
small groups with Chief Investment Officers and
Portfolio
Managers to review recent performance and the current
investment
climate for selected funds. These meetings ensure that
each
fund's performance is reviewed in detail at least twice
a year.
The Contract Committee typically meets on several
additional
occasions during the year to carry out its
responsibilities.
Other Committees, including an Executive Committee, may
also meet
on special occasions as the need arises.
What are the Trustees paid for their services?
Your fund pays each Trustee a fee for his or her
services. Each
Trustee also receives fees for serving as Trustee of the
other
Putnam funds. The Trustees periodically review their
fees to
assure that such fees continue to be appropriate in
light of
their responsibilities as well as in relation to fees
paid to
trustees of other mutual fund complexes. The fees paid
to each
Trustee by your fund and by all of the Putnam funds are
shown
below:
<PAGE>
Compensation Table+
Aggregate compensation
from:
Total
compenstion
New
from all
Arizona Florida Massachusetts Michigan
Minnesota Jersey Ohio Pennsylvania Putnam
Fund* Fund* Fund* Fund*
Fund* Fund* Fund* Fund* funds**
Jameson A. $773 $860 $867 $779 $761
$873 $825 $827 $ 150,854
Baxter
Hans H. 770 857 863 776 758
869 821 824 150,854
Estin
John A. 765 850 856 770 753
862 816 818 149,854
Hill
Elizabeth 770 857 863 776 758
869 821 824 148,854
T. Kennan
Lawrence 766 852 858 772 754
863 817 819 150,854
J. Lasser
Robert 792 885 893 798 780
898 848 851 152,854
E. Patterson
Donald 767 853 859 773 755
865 818 820 150,854
S. Perkins
William 880 889 788 767
892 839 843 149,854
F. Pounds***
781
George 770 857 863 776 758
869 821 824 150,854
Putnam
George 770 857 863 776 758
869 821 824 150,854
Putnam,
III
Eli Shapiro***792 886 893 799 780
899 848 852 95,372
A.J.C. 765 850 856 771 753
862 816 818 149,854
Smith
W. Nicholas 792 885 893 799 780
899 848 851 152,854
Thorndike
+ Ronald J. Jackson became a Trustee of the funds
effective May 3, 1996 and received no
compensation from these or the other Putnam funds
in 1995.
* Includes an annual retainer and an attendance fee
for each meeting attended.
** Reflects total payments received from all Putnam
funds in the most recent calendar
year. As of December 31, 1995, there were 99 funds
in the Putnam family.
*** Includes additional compensation for services as
Vice Chairman of the Putnam funds.
**** Elected as a Trustee in April, 1995.
<PAGE>
Your fund's Trustees have approved Retirement Guidelines
for
Trustees of the Putnam funds. These guidelines provide
generally
that a Trustee who retires after reaching age 72 and who
has at
least 10 years of continuous service will be eligible to
receive
a retirement benefit from each Putnam fund for which he
or she
served as a Trustee. The amount and form of such
benefit is
subject to determination annually by the Trustees and,
unless
otherwise determined by the Trustees, will be an annual
cash
benefit payable for life equal to one-half of the
Trustee
retainer fees paid by each fund at the time of
retirement.
Several retired Trustees are currently receiving
benefits
pursuant to the Guidelines and it is anticipated that
the current
Trustees will receive similar benefits upon their
retirement. A
Trustee who retired in calendar 1995 and was eligible to
receive
benefits under these Guidelines would have received an
annual
benefit of $66,749, based upon the aggregate retainer
fees paid
by the Putnam funds for such year. The Trustees reserve
the
right to amend or terminate such Guidelines and the
related
payments at any time, and may modify or waive the
foregoing
eligibility requirements when deemed appropriate.
For additional information about your fund, including
further
information about its Trustees and officers, please see
"Further
Information About Your Fund," on page [ ].
Putnam Investments
Putnam Investment Management, Inc. and its affiliates,
Putnam
Mutual Funds, the principal underwriter for shares of
your fund
and Putnam Fiduciary Trust Company, your fund's investor
servicing agent and custodian, are wholly owned by
Putnam
Investments, Inc., One Post Office Square, Boston,
Massachusetts
02109, a holding company that is in turn wholly owned by
Marsh &
McLennan Companies, Inc., which has executive offices at
1166
Avenue of the Americas, New York, New York 10036. Marsh
&
McLennan Companies, Inc. and its operating subsidiaries
are
professional services firms with insurance and
reinsurance
brokering, consulting and investment management
businesses.
2.A. SELECTION OF INDEPENDENT AUDITORS
(FOR SHAREHOLDERS OF ARIZONA FUND, MICHIGAN FUND,
NEW JERSEY
FUND AND OHIO FUND ONLY)
Coopers & Lybrand L.L.P., One Post Office Square,
Boston,
Massachusetts, independent accountants, has been
selected by the
Trustees as the auditor of Arizona Fund, Michigan Fund,
New
Jersey Fund and Ohio Fund for the current fiscal year.
Among the
country's preeminent accounting firms, this firm also
serves as
the auditor for approximately half of the other funds in
the
Putnam family. It was selected primarily on the basis
of its
expertise as auditors of investment companies, the
quality of its
audit services, and the competitiveness of the fees
charged for
these services.
<PAGE>
A majority of the votes of each fund on the matter is
necessary
to ratify the selection of auditors for each such fund.
A
representative of the independent auditors is expected
to be
present at the meeting to make statements and to respond
to
appropriate questions.
2.B. SELECTION OF INDEPENDENT AUDITORS
(FOR SHAREHOLDERS OF FLORIDA FUND, MASSACHUSETTS
FUND,
MINNESOTA FUND AND PENNSYLVANIA FUND ONLY)
Price Waterhouse LLP, 160 Federal Street, Boston,
Massachusetts,
independent accountants, has been selected by the
Trustees as the
auditor of Florida Fund, Massachusetts Fund, Minnesota
Fund and
Pennsylvania Fund for the current fiscal year. Among
the
country's preeminent accounting firms, this firm also
serves as
the auditor for approximately half of the other funds in
the
Putnam family. It was selected primarily on the basis
of its
expertise as auditors of investment companies, the
quality of its
audit services, and the competitiveness of the fees
charged for
these services.
A majority of the votes of each fund on the matter is
necessary
to ratify the selection of auditors for each such fund.
A
representative of the independent auditors is expected
to be
present at the meeting to make statements and to respond
to
appropriate questions.
PROPOSALS 3 AND 4
As described in the following proposals, the Trustees
are
recommending that shareholders approve a number of
changes to
your fund's fundamental investment restrictions,
including the
elimination of certain of these restrictions. The
purpose of
these changes is to standardize the investment
restrictions of
the Putnam funds, including your fund where appropriate,
and in
certain cases to increase the fund's investment
flexibility. By
having standard investment restrictions for the Putnam
funds,
Putnam Management will be able to more easily monitor
each fund's
compliance with its investment policies. Most of these
changes
will have little practical effect on the way the funds
are
managed given each fund's current investment objective
and
policies.
Several of these changes expand each fund's
opportunities to
invest in securities that generate taxable income. In
any case,
each fund will continue to meet the asset composition
requirements under the Internal Revenue Code of 1986, as
amended
(the "Code") for passing through tax-exempt income as
exempt-
interest dividends to its shareholders.
Several of the proposals request that certain
fundamental
restrictions be made non-fundamental, so that a fund
affected
thereby would have the ability to modify or eliminate
these
restrictions at a later date without shareholder
approval. As of
the date of the mailing of this proxy statement, there
is
<PAGE>
legislation pending before the U.S. Congress which seeks
to end
all state-imposed investment limitations on investment
companies
like the funds. Since many of these restrictions are
the result
of state securities law requirements, this legislation,
if
successful, would most likely lead to the removal of
some or all
of these non-fundamental restrictions.
The adoption of any of these proposals is not contingent
on the
adoption of any other proposal.
Shareholders of each fund vote separately on the
proposals.
Voting on any proposal by one fund will not affect
voting on that
proposal by any other fund.
3.A. AMENDING THE FUND'S FUNDAMENTAL INVESTMENT
RESTRICTION WITH
RESPECT TO DIVERSIFICATION
(FOR SHAREHOLDERS OF MASSACHUSETTS FUND, MICHIGAN
FUND,
MINNESOTA FUND AND OHIO FUND ONLY)
The Trustees are recommending that each of the
above-referenced
fund's fundamental investment restriction with respect
to the
diversification of its investments be revised to reflect
the
standard restriction expected to be used by other Putnam
funds
and to grant each fund the maximum investment
flexibility
permitted by the Investment Company Act of 1940, as
amended
("1940 Act"). Under the 1940 Act, each fund, as a
diversified
fund, generally may not, with respect to 75% of its
total assets,
invest more than 5% of its total assets in the
securities of any
one issuer (except U.S. government securities). The
remaining
25% of each fund's total assets is not subject to this
restriction.
Each fund's current restriction is more restrictive, and
states
that the fund may not:
"Invest in securities of any issuer if, immediately
after
such investment, more than 5% of the total assets
of a fund
(taken at current value) would be invested in the
securities
of such issuer; provided that this limitation does
not apply
to obligations issued or guaranteed as to interest
and
principal by the U.S. government, its agencies or
instrumentalities or to tax-exempt securities."
The proposed amended fundamental investment restriction
is set
forth below.
"The fund may not ...
With respect to 75% of its total assets, invest in
the
securities of any issuer if, immediately after such
investment, more than 5% of the total assets of the
fund (taken at current value) would be invested in
the
securities of such issuer; provided that this
limitation does not apply to obligations issued or
<PAGE>
guaranteed as to interest or principal by the U.S.
government or its agencies or instrumentalities."
If the proposed change is approved, each fund will be
able to
invest up to 25% of its total assets in the securities
of any one
issuer. The amended restriction would continue to
exclude from
its limitations U.S. government securities, and would
clarify,
consistent with applicable rules, that investments in
issuers of
tax-exempt securities are subject to this limitation.
Following
the amendment, each fund would continue to be a
diversified
investment company for purposes of the 1940 Act.
Putnam Management believes that this enhanced
flexibility could
assist each fund in achieving its investment objective.
However,
during times when Putnam Management invests a higher
percentage
of a fund's assets in one or more issuers, the value of
the
fund's shares may fluctuate more widely than the value
of shares
of a portfolio investing in a larger number of issuers.
Required Vote. Approval of this proposal by each fund
requires
the affirmative vote of the lesser of (1) more than 50%
of the
outstanding shares of the fund, or (2) 67% or more of
the shares
of the fund present at the meeting if more than 50% of
the
outstanding shares of the fund are present at the
meeting in
person or by proxy.
3.B.1. AMENDING THE FUND'S FUNDAMENTAL INVESTMENT
RESTRICTION
WITH RESPECT TO INVESTMENTS IN THE VOTING
SECURITIES OF
A SINGLE ISSUER
(FOR SHAREHOLDERS OF MASSACHUSETTS FUND, MICHIGAN
FUND,
MINNESOTA FUND, OHIO FUND AND PENNSYLVANIA FUND
ONLY)
The Trustees are recommending that each of the
above-referenced
fund's fundamental investment restriction with respect
to
investments in the voting securities of a single issuer
be
revised to reflect the standard restriction expected to
be used
by other Putnam funds and to grant each fund the maximum
flexibility permitted under the 1940 Act. The 1940 Act
prohibits
a diversified fund, such as each of the funds, from
investing,
with respect to 75% of its total assets, in the voting
securities
of an issuer if as a result it would own more than 10%
of the
outstanding voting securities of that issuer. Each
fund's
current investment restriction, which is more
restrictive than
the 1940 Act, states that the fund may not:
"Acquire more than 10% of the voting securities of
any
issuer."
The proposed amended fundamental investment restriction
is set
forth below.
"The fund may not ...
<PAGE>
With respect to 75% of its total assets, acquire
more
than 10% of the outstanding voting securities of
any
issuer."
The amendment enables a fund to purchase more than 10%
of the
voting securities of an issuer with respect to 25% of
each fund's
total assets. Since each fund invests primarily in
fixed-income
securities, which are not typically voting securities,
this
proposal will have little practical effect on each fund.
Nevertheless, Putnam Management believes it would be in
the best
interest of each fund to conform the policy to provide
it with
maximum flexibility should circumstances change.
To the extent a fund individually or with other funds
and
accounts managed by Putnam Management or its affiliates
were to
own all or a major portion of the outstanding voting
securities
of a particular issuer, under adverse market or economic
conditions or in the event of adverse changes in the
financial
condition of the issuer the fund could find it more
difficult to
sell these voting securities when Putnam Management
believes it
advisable to do so, or may be able to sell the
securities only at
prices significantly lower than if they were more widely
held.
Required vote. Approval of this proposal by each fund
requires
the affirmative vote of the lesser of (1) more than 50%
of the
outstanding shares of the fund, or (2) 67% or more of
the shares
of the fund present at the meeting if more than 50% of
the
outstanding shares of the fund are present at the
meeting in
person or by proxy.
3.B.2 AMENDING THE FUND'S FUNDAMENTAL INVESTMENT
RESTRICTION
WITH RESPECT TO INVESTMENTS IN THE VOTING
SECURITIES OF
A SINGLE ISSUER
(FOR SHAREHOLDERS OF ARIZONA FUND, FLORIDA FUND AND
NEW
JERSEY FUND ONLY)
The Trustees are recommending that each of the
above-referenced
fund's fundamental investment restriction with respect
to
investments in the voting securities of a single issuer
be
revised to reflect the standard restriction expected to
be used
by other Putnam funds and to grant each fund the maximum
flexibility permitted under the Code. Under the Code, a
nondiversified fund such as each of the funds, may not
invest,
with respect to 50% of its total assets, in the
securities of an
issuer if as a result it would own more than 10% of the
outstanding voting securities of that issuer. The
remaining 50%
of the fund's total assets is not subject to this
limitation.
Each fund's current investment restriction, which is
more
restrictive than applicable tax rules, states that the
fund may
not:
"Acquire more than 10% of the voting securities of
any
issuer."
<PAGE>
The proposed amended fundamental investment restriction
is set
forth below.
"The fund may not ...
With respect to 50% of its total assets, acquire
more
than 10% of the outstanding voting securities of
any
issuer."
The amendment enables each fund to purchase more than
10% of the
voting securities of an issuer with respect to 50% of
the fund's
total assets. Since each fund invests primarily in
fixed-income
securities, which are not typically voting securities,
this
proposal will have little practical effect on each fund.
Nevertheless, Putnam Management believes it would be in
the best
interest of each fund to conform the policy to provide
each fund
with maximum flexibility should circumstances change.
To the extent a fund individually or with other funds
and
accounts managed by Putnam Management or its affiliates
were to
own all or a major portion of the outstanding voting
securities
of a particular issuer, under adverse market or economic
conditions or in the event of adverse changes in the
financial
condition of the issuer the fund could find it more
difficult to
sell these voting securities when Putnam Management
believes it
advisable to do so, or may be able to sell the
securities only at
prices significantly lower than if they were more widely
held.
Required vote. Approval of this proposal by each fund
requires
the affirmative vote of the lesser of (1) more than 50%
of the
outstanding shares of the fund, or (2) 67% or more of
the shares
of the fund present at the meeting if more than 50% of
the
outstanding shares of the fund are present at the
meeting in
person or by proxy.
3.C.1. AMENDING THE FUND'S FUNDAMENTAL INVESTMENT
RESTRICTION
WITH RESPECT TO MAKING LOANS
(FOR SHAREHOLDERS OF FLORIDA FUND, MASSACHUSETTS
FUND,
MICHIGAN FUND, MINNESOTA FUND, NEW JERSEY FUND,
OHIO FUND
AND PENNSYLVANIA FUND ONLY)
The Trustees are recommending that each of the
above-referenced
fund's fundamental investment restriction with respect
to making
loans be revised to reflect the standard restriction
expected to
be used by other Putnam funds, to remove any asset
limitations on
each fund's ability to enter into repurchase agreements
and to
permit each fund to enter into securities loans. The
current
restriction states that each fund may not:
"Make loans, except by purchase of debt obligations
in which
a fund may invest consistent with its investment
policies,
or by entering into repurchase agreements with
respect to
not more than 25% of its total assets (taken at
current
value).
<PAGE>
The proposed amended fundamental investment restriction
is set
forth below.
"The fund may not ...
Make loans, except by purchase of debt obligations
in
which the fund may invest consistent with its
investment policies, by entering into repurchase
agreements, or by lending its portfolio
securities."
Following the amendment, each fund may, consistent with
its
investment objective and policies and applicable law,
enter into
repurchase agreements and securities loans without
limit.
Given each fund's investment policies and the fact that
securities loans give rise to taxable income, Putnam
Management
does not presently intend to engage in securities loans
on behalf
of a fund.
When a fund enters into a repurchase agreement, it
typically
purchases a security for a relatively short period
(usually not
more than one week), which the seller agrees to
repurchase at a
fixed time and price, representing the fund's cost plus
interest.
When a fund enters into a securities loan, it lends
certain of
its portfolio securities to broker-dealers or other
parties and
typically receives an interest payment in return. These
transactions must be fully collateralized at all times,
but
involve some risk to the fund if the other party should
default
on its obligation. If the other party in these
transactions
should become involved in bankruptcy or insolvency
proceedings,
it is possible that the fund may be treated as an
unsecured
creditor and be required to return the underlying
collateral to
the other party's estate.
Required vote. Approval of this proposal by each fund
requires
the affirmative vote of the lesser of (1) more than 50%
of the
outstanding shares of the fund, or (2) 67% or more of
the shares
of the fund present at the meeting if more than 50% of
the
outstanding shares of the fund are present at the
meeting in
person or by proxy.
3.C.2. AMENDING THE FUND'S FUNDAMENTAL INVESTMENT
RESTRICTION
WITH RESPECT TO MAKING LOANS
(FOR SHAREHOLDERS OF ARIZONA FUND ONLY)
The Trustees are recommending that the above-referenced
fund's
fundamental investment restriction with respect to
making loans
be revised to reflect the standard restriction expected
to be
used by other Putnam funds and to remove any asset
limitations on
the fund's ability to enter into repurchase agreements
and
securities loans. The current restriction states that
the fund
may not:
"Make loans, except by purchase of debt obligations
in which
the Arizona Fund may invest consistent with its
investment
<PAGE>
policies, or by entering into repurchase agreements
with
respect to not more than 25% of its total assets
(taken at
current value) or through the lending of its
portfolio
securities with respect to not more than 25% of its
assets."
The proposed amended fundamental investment restriction
is set
forth below.
"The fund may not ...
Make loans, except by purchase of debt obligations
in
which the fund may invest consistent with its
investment policies, by entering into repurchase
agreements, or by lending its portfolio
securities."
Following the amendment, the fund may, consistent with
its
investment objective and policies and applicable law,
enter into
repurchase agreements and securities loans without
limit.
Given the fund's investment policies and the fact that
securities
loans give rise to taxable income, Putnam Management
does not
presently intend to engage in securities loans on behalf
of the
fund.
When the fund enters into a repurchase agreement, it
typically
purchases a security for a relatively short period
(usually not
more than one week), which the seller agrees to
repurchase at a
fixed time and price, representing the fund's cost plus
interest.
When the fund enters into a securities loan, it lends
certain of
its portfolio securities to broker-dealers or other
parties and
typically receives an interest payment in return. These
transactions must be fully collateralized at all times,
but
involve some risk to the fund if the other party should
default
on its obligation. If the other party in these
transactions
should become involved in bankruptcy or insolvency
proceedings,
it is possible that the fund may be treated as an
unsecured
creditor and be required to return the underlying
collateral to
the other party's estate.
Required vote. Approval of this proposal requires the
affirmative vote of the lesser of (1) more than 50% of
the
outstanding shares of the fund, or (2) 67% or more of
the shares
of the fund present at the meeting if more than 50% of
the
outstanding shares of the fund are present at the
meeting in
person or by proxy.
3.D.1. AMENDING THE FUND'S FUNDAMENTAL INVESTMENT
RESTRICTION
WITH RESPECT TO INVESTMENTS IN REAL ESTATE
(FOR SHAREHOLDERS OF MASSACHUSETTS FUND, MICHIGAN
FUND,
MINNESOTA FUND, OHIO FUND AND PENNSYLVANIA FUND
ONLY)
The Trustees are recommending that each of the
above-referenced
fund's fundamental investment restriction with respect
to
investments in real estate be revised to reflect the
standard
<PAGE>
restriction expected to be used by other Putnam funds
and to
grant each fund the maximum flexibility in light of
current
regulatory requirements. Although the funds are required
to have
a fundamental policy with respect to investments in real
estate,
each fund's current restriction is more restrictive than
current
state securities law requirements. The current
restriction of
each fund states that the fund may not:
"Purchase or sell real estate, although it may
purchase
or sell securities which are secured by or
represent
interests in real estate."
The proposed amended fundamental investment restriction
is set
forth below.
"The fund may not ...
Purchase or sell real estate, although it may
purchase
securities of issuers which deal in real estate,
securities which are secured by interests in real
estate, and securities which represent interests in
real estate, and it may acquire and dispose of real
estate or interests in real estate acquired through
the
exercise of its rights as a holder of debt
obligations
secured by real estate or interests therein."
The proposed amendment enables each fund to invest in a
wide
range of real estate-related investments, many in which
each fund
may already invest under the current restriction. In
addition,
each fund would be able to own real estate directly as a
result
of the exercise of its rights in connection with debt
obligations
it owns. In such cases, the ability to acquire and
dispose of
real estate may serve to protect a fund during times
where an
issuer of debt securities is unable to meet its
obligations.
Since each fund invests primarily in fixed-income
securities, the
proposal will have little practical effect on the funds
except to
the extent the funds' investments are secured by the
real estate
holdings of an issuer. Nevertheless, Putnam Management
believes
it would be in the best interest of each fund to conform
the
policy to provide the funds with maximum flexibility
should
circumstances change.
In order to enforce its rights in the event of a default
of an
issuer of real estate-related securities, a fund may be
required
to participate in various legal proceedings or take
possession of
and manage assets securing the issuer's obligations.
This could
increase a fund's operating expenses and adversely
affect the
fund's net asset value.
Required vote. Approval of this proposal by each fund
requires
the affirmative vote of the lesser of (1) more than 50%
of the
outstanding shares of the fund, or (2) 67% or more of
the shares
of the fund present at the meeting if more than 50% of
the
outstanding shares of the fund are present at the
meeting in
person or by proxy.
<PAGE>
3.D.2. AMENDING THE FUND'S FUNDAMENTAL INVESTMENT
RESTRICTION
WITH RESPECT TO INVESTMENTS IN REAL ESTATE
(FOR SHAREHOLDERS OF ARIZONA FUND, FLORIDA FUND AND
NEW
JERSEY FUND ONLY)
The Trustees are recommending that each of the
above-referenced
fund's fundamental investment restriction with respect
to
investments in real estate be revised to reflect the
standard
restriction expected to be used by other Putnam funds.
The
current restriction of each fund states that the fund
may not:
"Purchase or sell real estate, although it may
purchase
securities of issuers which deal in real estate,
securities which are secured by interests in real
estate, and securities representing interests in
real
estate, and it may acquire and dispose of real
estate
or interests in real estate acquired through the
exercise of its rights as a holder of debt
obligations
secured by real estate or interests therein."
The proposed amended fundamental investment restriction
is set
forth below.
"The fund may not ...
Purchase or sell real estate, although it may
purchase
securities of issuers which deal in real estate,
securities which are secured by interests in real
estate, and securities which represent interests in
real estate, and it may acquire and dispose of real
estate or interests in real estate acquired through
the
exercise of its rights as a holder of debt
obligations
secured by real estate or interests therein."
The proposed amendment would merely conform each fund's
restriction and would have no effect on a fund's
investments.
Required vote. Approval of this proposal by each fund
requires
the affirmative vote of the lesser of (1) more than 50%
of the
outstanding shares of the fund, or (2) 67% or more of
the shares
of the fund present at the meeting if more than 50% of
the
outstanding shares of the fund are present at the
meeting in
person or by proxy.
3.E.1. AMENDING THE FUND'S FUNDAMENTAL INVESTMENT
RESTRICTION
WITH RESPECT TO CONCENTRATION OF ITS ASSETS
(FOR SHAREHOLDERS OF FLORIDA FUND, MASSACHUSETTS
FUND,
MICHIGAN FUND, MINNESOTA FUND, NEW JERSEY FUND,
OHIO FUND
AND PENNSYLVANIA FUND ONLY)
The Trustees are recommending that each of the
above-referenced
fund's fundamental investment restriction regarding
concentration
be revised to reflect the standard restriction expected
to be
<PAGE>
used by other Putnam funds and to clarify each fund's
policy with
respect to certain tax-exempt securities. The current
restriction states that the fund may not:
"Purchase securities (other than securities of the
U.S.
government, its agencies or instrumentalities and
tax-exempt
securities, except obligations backed only by the
assets and
revenues of nongovernmental issuers) if as a result
of such
purchase more than 25% of the fund's total assets
would be
invested in any one industry."
The proposed amended fundamental restriction is set
forth below.
"The fund may not ...
Purchase securities (other than securities of the
U.S.
government, its agencies or instrumentalities or
tax-exempt
securities, except tax-exempt securities backed
only by the
assets and revenues of non-governmental issuers)
if, as a
result of such purchase, more than 25% of the
fund's total
assets would be invested in any one industry.
The proposed amendment would merely conform each fund's
restriction and would have no effect on a fund's
investments.
Required vote. Approval of this proposal by each fund
requires
the affirmative vote of the lesser of (1) more than 50%
of the
outstanding shares of the fund, or (2) 67% or more of
the shares
of the fund present at the meeting if more than 50% of
the
outstanding shares of the fund are present at the
meeting in
person or by proxy.
3.E.2. AMENDING THE FUND'S FUNDAMENTAL INVESTMENT
RESTRICTION
WITH RESPECT TO CONCENTRATION OF ITS ASSETS
(FOR SHAREHOLDERS OF ARIZONA FUND ONLY)
The Trustees are recommending that the above-referenced
fund's
fundamental investment restriction regarding
concentration be
revised to reflect the standard restriction expected to
be used
by other Putnam funds. The current restriction states
that the
fund may not:
"Purchase securities (other than securities of the
U.S.
government, its agencies or instrumentalities or
tax-exempt
securities, except obligations backed only by the
assets and
revenues of nongovernmental issuers) if as a result
of such
purchase, more than 25% of the Arizona Fund's total
assets
would be invested in any one industry."
The proposed amended fundamental restriction is set
forth below.
"The fund may not ...
Purchase securities (other than securities of the
U.S.
government, its agencies or instrumentalities or
tax-exempt
<PAGE>
securities, except tax-exempt securities backed
only by the
assets and revenues of non-governmental issuers)
if, as a
result of such purchase, more than 25% of the
fund's total
assets would be invested in any one industry."
The proposed amendment would merely conform the fund's
restriction and would have no effect on the fund's
investments.
Required vote. Approval of this proposal requires the
affirmative vote of the lesser of (1) more than 50% of
the
outstanding shares of the fund, or (2) 67% or more of
the shares
of the fund present at the meeting if more than 50% of
the
outstanding shares of the fund are present at the
meeting in
person or by proxy.
3.F. AMENDING THE FUND'S FUNDAMENTAL INVESTMENT
RESTRICTION WITH
RESPECT TO SENIOR SECURITIES
(FOR SHAREHOLDERS OF ALL FUNDS)
The Trustees are recommending that the funds'
fundamental
investment restriction with respect to the issuance of
senior
securities be revised to reflect the standard
restriction
expected to be used by other Putnam funds and to make it
clear
that each fund is not restricted from borrowing money
consistent
with its investment policies. Generally, a "senior
security" is
a security which has priority over any other security as
to
distribution of assets or dividends and technically
includes all
indebtedness over 5% of a fund's assets. The current
restriction
states that each fund may not:
"Issue any class of securities which is senior to
the fund's
shares of beneficial interest."
The proposed amended fundamental investment restriction
is set
forth below.
"The fund may not ...
Issue any class of securities which is senior to
the fund's
shares of beneficial interest, except for permitted
borrowings."
Although Putnam Management believes that each fund may
currently
borrow money to the maximum extent permitted by its
existing
policies (up to 10% of its total assets) without
violating its
current restriction, it believes that amending the
restriction
will avoid any possible ambiguity.
Required vote. Approval of this proposal by each fund
requires
the affirmative vote of the lesser of (1) more than 50%
of the
outstanding shares of the fund, or (2) 67% or more of
the shares
of the fund present at the meeting if more than 50% of
the
outstanding shares of the fund are present at the
meeting in
person or by proxy.
<PAGE>
3.G.1. AMENDING THE FUND'S FUNDAMENTAL INVESTMENT
RESTRICTION
WITH RESPECT TO INVESTMENTS IN COMMODITIES
(FOR SHAREHOLDERS OF FLORIDA FUND, NEW JERSEY FUND
AND
PENNSYLVANIA FUND ONLY)
The Trustees are recommending that each of the
above-referenced
fund's fundamental investment restriction with respect
to
investments in commodities be revised to reflect the
standard
restriction expected to be used by other Putnam funds.
The
current restriction states that each fund may not:
"Purchase or sell commodities or commodity
contracts, except
that a fund may write and purchase financial
futures
contracts and related options."
The proposed amended fundamental restriction is set
forth below.
"The fund may not ...
Purchase or sell commodities or commodity
contracts,
except that the fund may purchase and sell
financial
futures contracts and options and may enter into
foreign exchange contracts and other financial
transactions not involving physical commodities."
Under the revised restriction, each fund will continue
to be able
to engage in a variety of transactions involving the use
of
financial futures and options, as well as various other
financial
transactions to the extent consistent with its
investment
objectives and policies. Although each fund may already
engage
in many of these activities, Putnam Management believes
that the
revised language more clearly sets forth each fund's
policy. The
addition of financial transactions not involving the
direct
purchase or sale of physical commodities is intended to
give each
fund maximum flexibility to invest in a variety of
financial
instruments that could technically be considered
commodities, but
which do not involve the direct purchase or sale of
physical
commodities, which is the intended focus of the
restriction.
Foreign exchange transactions are subject to many of the
risks
associated with futures and options. However, given
each fund's
investment policies and the fact that foreign currency
exchange
transactions give rise to taxable income, none of the
funds
currently intends to engage in such investments.
Required vote. Approval of this proposal by each fund
requires
the affirmative vote of the lesser of (1) more than 50%
of the
outstanding shares of the fund, or (2) 67% or more of
the shares
of the fund present at the meeting if more than 50% of
the
outstanding shares of the fund are present at the
meeting in
person or by proxy.
3.G.2. AMENDING THE FUND'S FUNDAMENTAL INVESTMENT
RESTRICTION
WITH RESPECT TO INVESTMENTS IN COMMODITIES
<PAGE>
(FOR SHAREHOLDERS OF MASSACHUSETTS FUND, MICHIGAN
FUND,
MINNESOTA FUND AND OHIO FUND ONLY)
The Trustees are recommending that each of the
above-referenced
fund's fundamental investment restriction with respect
to
investments in commodities be revised to reflect the
standard
restriction expected to be used by other Putnam funds.
The
current restriction states that each fund may not:
"Purchase or sell commodities or commodity
contracts, except
that a fund may write and purchase options on
financial
futures contracts and buy and sell financial
contracts."
The proposed amended fundamental restriction is set
forth below.
"The fund may not ...
Purchase or sell commodities or commodity
contracts,
except that the fund may purchase and sell
financial
futures contracts and options and may enter into
foreign exchange contracts and other financial
transactions not involving physical commodities."
Under the revised restriction, each fund will continue
to be able
to engage in a variety of transactions involving the use
of
financial futures and options, as well as various other
financial
transactions to the extent consistent with its
investment
objectives and policies. Although each fund may already
engage
in many of these activities, Putnam Management believes
that the
revised language more clearly sets forth each fund's
policy. The
revised restriction also clarifies that the funds can
enter into
financial futures contracts, which is not made clear in
the
current restriction. The addition of financial
transactions not
involving the direct purchase or sale of physical
commodities is
intended to give each fund maximum flexibility to invest
in a
variety of financial instruments that could technically
be
considered commodities, but which do not involve the
direct
purchase or sale of physical commodities, which is the
intended
focus of the restriction.
Foreign exchange transactions are subject to many of the
risks
associated with futures and options. However, given
each fund's
investment policies and the fact that foreign currency
exchange
transactions give rise to taxable income, none of the
funds
currently intends to engage in such investments.
Required vote. Approval of this proposal by each fund
requires
the affirmative vote of the lesser of (1) more than 50%
of the
outstanding shares of the fund, or (2) 67% or more of
the shares
of the fund present at the meeting if more than 50% of
the
outstanding shares of the fund are present at the
meeting in
person or by proxy.
3.G.3. AMENDING THE FUND'S FUNDAMENTAL INVESTMENT
RESTRICTION
WITH RESPECT TO INVESTMENTS IN COMMODITIES
<PAGE>
(FOR SHAREHOLDERS OF ARIZONA FUND ONLY)
The Trustees are recommending that the above-referenced
fund's
fundamental investment restriction with respect to
investments in
commodities be revised to reflect the standard
restriction
expected to be used by other Putnam funds. The current
restriction states that the fund may not:
"Purchase or sell commodities or commodity
contracts, except
that the Arizona Fund may purchase and sell
financial
futures contracts and related options."
The proposed amended fundamental restriction is set
forth below.
"The fund may not ...
Purchase or sell commodities or commodity
contracts,
except that the fund may purchase and sell
financial
futures contracts and options and may enter into
foreign exchange contracts and other financial
transactions not involving physical commodities."
Under the revised restriction, the fund will continue to
be able
to engage in a variety of transactions involving the use
of
financial futures and options, as well as various other
financial
transactions to the extent consistent with its
investment
objectives and policies. Although the fund may already
engage in
many of these activities, Putnam Management believes
that the
revised language more clearly sets forth the fund's
policy. The
addition of financial transactions not involving the
direct
purchase or sale of physical commodities is intended to
give the
fund maximum flexibility to invest in a variety of
financial
instruments that could technically be considered
commodities, but
which do not involve the direct purchase or sale of
physical
commodities, which is the intended focus of the
restriction.
Foreign exchange transactions are subject to many of the
risks
associated with futures and options. However, given the
fund's
investment policies and the fact that foreign currency
exchange
transactions give rise to taxable income, the fund
currently has
no intention of engaging in such investments.
Required vote. Approval of this proposal requires the
affirmative vote of the lesser of (1) more than 50% of
the
outstanding shares of the fund, or (2) 67% or more of
the shares
of the fund present at the meeting if more than 50% of
the
outstanding shares of the fund are present at the
meeting in
person or by proxy.
4.A. ELIMINATING THE FUND'S FUNDAMENTAL INVESTMENT
RESTRICTION
WITH RESPECT TO INVESTMENTS IN SECURITIES OF
ISSUERS IN
WHICH MANAGEMENT OF THE FUNDS OR PUTNAM INVESTMENT
MANAGEMENT OWNS SECURITIES
(FOR SHAREHOLDERS OF ALL FUNDS)
<PAGE>
The Trustees are recommending eliminating the funds'
fundamental
investment restriction which prevents each fund from
investing in
the securities of issuers in which management of the
fund or
Putnam Management owns a certain percentage of
securities and
replacing it with a standard non-fundamental investment
restriction expected to be used by other Putnam funds.
The
current restriction states that each fund may not:
"Invest in securities of any issuer if, to the
knowledge of
the fund, officers and Trustees of the fund and
officers and
directors of Putnam Management who beneficially own
more
than 0.5% of the shares or securities of that
issuer
together own more than 5%."
The funds originally adopted this restriction to comply
with
certain state securities law requirements, and while the
restriction is currently required by one state, it is
not
required to be a fundamental policy. If this proposal
is
approved, the Trustees intend to replace this
fundamental
restriction with the following substantially identical
non-
fundamental investment restriction to comply with the
remaining
state requirement:
"The fund may not. . .
Invest in the securities of any issuer, if, to the
knowledge
of the fund, officers and Trustees of the fund and
officers
and directors of Putnam Management who beneficially
own more
than 0.5% of the securities of that issuer together
own more
than 5% of such securities."
By making this policy non-fundamental, the funds will
have the
ability to modify or eliminate the restriction to
increase
investment flexibility without the need for shareholder
approval.
If the restriction were to be eliminated, each fund
would be able
to invest in the securities of any issuer without regard
to
ownership in such issuer by management of the fund or
Putnam
Management, except to the extent prohibited by the
fund's
investment policies or the 1940 Act.
Required vote. Approval of this proposal by each fund
requires
the affirmative vote of the lesser of (1) more than 50%
of the
outstanding shares of the fund, or (2) 67% or more of
the shares
of the fund present at the meeting if more than 50% of
the
outstanding shares of the fund are present at the
meeting in
person or by proxy.
4.B.1. ELIMINATING THE FUND'S FUNDAMENTAL INVESTMENT
RESTRICTION WITH RESPECT TO MARGIN
TRANSACTIONS
(FOR SHAREHOLDERS OF FLORIDA FUND, NEW JERSEY FUND
AND
PENNSYLVANIA FUND)
The Trustees are recommending that each of the
above-referenced
fund's fundamental investment restriction with respect
to margin
<PAGE>
transactions be eliminated and replaced by a standard
non-
fundamental investment restriction expected to be used
by other
Putnam funds. "Margin transactions" involve the
purchase of
securities with money borrowed from a broker, with cash
or
eligible securities being used as collateral against the
loan.
The current restriction states that each fund may not:
"Purchase securities on margin, except such
short-term
credits as may be necessary for the clearance of
purchases
and sales of securities, and except that it may
make margin
payments in connection with futures contracts and
related
options."
The fund originally adopted this restriction to comply
with
certain state securities law requirements, and while the
restriction is currently required by one state, it is
not
required to be a fundamental policy. If the proposal is
approved, the Trustees intend to replace this
fundamental
restriction with the following substantially identical
non-
fundamental investment restriction to comply with the
remaining
state requirement:
"The fund may not. . .
Purchase securities on margin, except such
short-term
credits as may be necessary for the clearance of
purchases
and sales of securities, and except that it may
make margin
payments in connection with financial futures
contracts or
options."
By making this policy non-fundamental, each fund will
have the
ability to modify or eliminate the restriction to
increase
investment flexibility without the need for shareholder
approval.
Each fund's potential use of margin transactions beyond
transactions in financial futures and options and for
the
clearance of purchases and sales of securities,
including the use
of margin in ordinary securities transactions, is
currently
limited by SEC guidelines which prohibit margin
transactions
because they create senior securities. Each fund's
ability to
engage in margin transactions is also limited by its
investment
policies, which generally permit each fund to borrow
money only
in limited circumstances.
The state of California, which currently requires the
fund to
maintain this policy, has enacted legislation which will
remove,
effective January 1, 1997, all California securities law
requirements that restrict the fund's investment
practices. At
such time, the Trustees may decide to remove this
restriction in
its entirety because it would no longer be required.
Required vote. Approval of this proposal by each fund
requires
the affirmative vote of the lesser of (1) more than 50%
of the
outstanding shares of the fund, or (2) 67% or more of
the shares
of the fund present at the meeting if more than 50% of
the
outstanding shares of the fund are present at the
meeting in
<PAGE>
person or by proxy.
4.B.2. ELIMINATING THE FUND'S FUNDAMENTAL INVESTMENT
RESTRICTION WITH RESPECT TO MARGIN
TRANSACTIONS
(FOR SHAREHOLDERS OF MASSACHUSETTS FUND, MICHIGAN
FUND,
MINNESOTA FUND AND OHIO FUND ONLY)
The Trustees are recommending that each of the
above-referenced
fund's fundamental investment restriction with respect
to margin
transactions be eliminated and replaced by a standard
non-
fundamental investment restriction expected to be used
by other
Putnam funds. "Margin transactions" involve the
purchase of
securities with money borrowed from a broker, with cash
or
eligible securities being used as collateral against the
loan.
The current restriction states that each fund may not:
"Purchase securities on margin, except such
short-term
credits as may be necessary for the clearance of
purchases
and sales of securities, and except that it may
make margin
payments in connection with options on financial
futures
contracts and on futures contracts."
The fund originally adopted this restriction to comply
with
certain state securities law requirements, and while the
restriction is currently required by one state, it is
not
required to be a fundamental policy. If the proposal is
approved, the Trustees intend to replace this
fundamental
restriction with the following substantially identical
non-
fundamental investment restriction to comply with the
remaining
state requirement:
"The fund may not. . .
Purchase securities on margin, except such
short-term
credits as may be necessary for the clearance of
purchases
and sales of securities, and except that it may
make margin
payments in connection with financial futures
contracts or
options."
By making this policy non-fundamental, each fund will
have the
ability to modify or eliminate the restriction to
increase
investment flexibility without the need for shareholder
approval.
Each fund's potential use of margin transactions beyond
transactions in financial futures and options and for
the
clearance of purchases and sales of securities,
including the use
of margin in ordinary securities transactions, is
currently
limited by SEC guidelines which prohibit margin
transactions
because they create senior securities. Each fund's
ability to
engage in margin transactions is also limited by its
investment
policies, which generally permit each fund to borrow
money only
in limited circumstances.
The state of California, which currently requires the
fund to
maintain this policy, has enacted legislation which will
remove,
<PAGE>
effective January 1, 1997, all California securities law
requirements that restrict the fund's investment
practices. At
such time, the Trustees may decide to remove this
restriction in
its entirety because it would no longer be required.
Required vote. Approval of this proposal by each fund
requires
the affirmative vote of the lesser of (1) more than 50%
of the
outstanding shares of the fund, or (2) 67% or more of
the shares
of the fund present at the meeting if more than 50% of
the
outstanding shares of the fund are present at the
meeting in
person or by proxy.
4.B.3. ELIMINATING THE FUND'S FUNDAMENTAL INVESTMENT
RESTRICTION WITH RESPECT TO MARGIN
TRANSACTIONS
(FOR SHAREHOLDERS OF ARIZONA FUND ONLY)
The Trustees are recommending that the above-referenced
fund's
fundamental investment restriction with respect to
margin
transactions be eliminated and replaced by a standard
non-
fundamental investment restriction expected to be used
by other
Putnam funds. "Margin transactions" involve the
purchase of
securities with money borrowed from a broker, with cash
or
eligible securities being used as collateral against the
loan.
The current restriction states that the fund may not:
"Purchase securities on margin, except such
short-term
credits as may be necessary for the clearance of
purchases
and sales of securities, and except that it may
make margin
payments in connection with futures contracts and
options."
The fund originally adopted this restriction to comply
with
certain state securities law requirements, and while the
restriction is currently required by one state, it is
not
required to be a fundamental policy. If the proposal is
approved, the Trustees intend to replace this
fundamental
restriction with the following substantially identical
non-
fundamental investment restriction to comply with the
remaining
state requirement:
"The fund may not. . .
Purchase securities on margin, except such
short-term
credits as may be necessary for the clearance of
purchases
and sales of securities, and except that it may
make margin
payments in connection with financial futures
contracts or
options."
By making this policy non-fundamental, the fund will
have the
ability to modify or eliminate the restriction to
increase
investment flexibility without the need for shareholder
approval.
The fund's potential use of margin transactions beyond
transactions in financial futures and options and for
the
clearance of purchases and sales of securities,
including the use
<PAGE>
of margin in ordinary securities transactions, is
currently
limited by SEC guidelines which prohibit margin
transactions
because they create senior securities. The fund's
ability to
engage in margin transactions is also limited by its
investment
policies, which generally permit the fund to borrow
money only in
limited circumstances.
The state of California, which currently requires the
fund to
maintain this policy, has enacted legislation which will
remove,
effective January 1, 1997, all California securities law
requirements that restrict the fund's investment
practices. At
such time, the Trustees may decide to remove this
restriction in
its entirety because it would no longer be required.
Required vote. Approval of this proposal requires the
affirmative vote of the lesser of (1) more than 50% of
the
outstanding shares of the fund, or (2) 67% or more of
the shares
of the fund present at the meeting if more than 50% of
the
outstanding shares of the fund are present at the
meeting in
person or by proxy.
4.C. ELIMINATING THE FUND'S FUNDAMENTAL INVESTMENT
RESTRICTION
WITH RESPECT TO SHORT SALES
(FOR SHAREHOLDERS OF ALL FUNDS)
The Trustees are recommending that the funds'
fundamental
investment restriction with respect to short sales be
eliminated
and replaced by a standard non-fundamental investment
restriction
expected to be used by other Putnam funds. The current
restriction states that each fund may not:
"Make short sales of securities or maintain a short
sale
position for the account of the fund unless at all
times
when a short position is open it owns an equal
amount of
such securities or owns securities which, without
payment of
any further consideration, are convertible into or
exchangeable for securities of the same issue as,
and equal
in amount to, the securities sold short."
Each fund originally adopted this restriction to comply
with
certain state securities law requirements, and while the
restriction is currently required by one state, it is
not
required to be a fundamental policy. If this proposal
is
approved, the Trustees intend to replace this
fundamental
restriction with the following substantially identical
non-
fundamental restriction to comply with the remaining
state
requirement:
"The fund may not ...
Make short sales of securities or maintain a short
position for the account of the fund unless at all
times when a short position is open it owns an
equal
amount of such securities or owns securities which,
<PAGE>
without payment of any further consideration, are
convertible into or exchangeable for securities of
the
same issue as, and in equal amount to, the
securities
sold short."
By making this policy non-fundamental, the funds will
have the
ability to modify or eliminate the restriction to
increase
investment flexibility without the need for shareholder
approval.
Given each fund's investment policies and the fact that
short
sales give rise to taxable income, Putnam Management
does not
currently intend to engage in short sales on behalf of
the funds.
Nevertheless, Putnam Management believes it is in the
best
interest of each fund to conform the policy and make it
non-
fundamental to provide each fund with maximum
flexibility should
circumstances change.
The state of California, which currently requires the
fund to
maintain this policy, has enacted legislation which will
remove,
effective January 1, 1997, all California securities law
requirements that restrict the fund's investment
practices. At
such time, the Trustees may decide to remove this
restriction in
its entirety because it would no longer be required.
Required vote. Approval of this proposal by each fund
requires
the affirmative vote of the lesser of (1) more than 50%
of the
outstanding shares of the fund, or (2) 67% or more of
the shares
of the fund present at the meeting if more than 50% of
the
outstanding shares of the fund are present at the
meeting in
person or by proxy.
4.D.1. ELIMINATING THE FUND'S FUNDAMENTAL INVESTMENT
RESTRICTION WITH RESPECT TO PLEDGING ASSETS
(FOR SHAREHOLDERS OF FLORIDA FUND, MASSACHUSETTS
FUND,
MICHIGAN FUND, MINNESOTA FUND, OHIO FUND AND
PENNSYLVANIA
FUND ONLY)
The Trustees are recommending that each of the
above-referenced
fund's fundamental investment restriction which limits
each
fund's ability to pledge its assets be eliminated and
replaced by
a standard non-fundamental investment restriction
expected to be
used by other Putnam funds. The current restriction
states that
the fund may not:
"Pledge, hypothecate, mortgage or otherwise
encumber its
assets in excess of 15% of its total assets (taken
at
current value) in connection with borrowings
permitted by
restriction 1 above. [Restriction 1 referred to in
this
restriction allows the fund to borrow up to 10% of
its
assets for certain limited purposes.]
Certain state securities laws impose restrictions on
each fund's
ability to pledge its assets, but these limitations are
less
restrictive than each fund's current restriction and are
not
required to be contained in a fundamental policy. For
this
<PAGE>
reason, Putnam Management believes that the current
restriction
is unnecessarily restrictive and should be eliminated.
If the
proposal is approved, the Trustees intend to replace
this
restriction with the following non-fundamental
investment
restriction to comply with current state requirements:
"The fund may not ...
Pledge, hypothecate, mortgage or otherwise encumber
its
assets in excess of 33 1/3% of its total assets
(taken
at cost) in connection with permitted borrowings."
This proposal would enable each fund to pledge up to
one-third of
its total assets in connection with fund borrowings;
other
activities which could be deemed to be pledges or other
encumbrances, such as collateral arrangements with
respect to
certain forward commitments, futures contracts and
options
transactions, will not be restricted.
Putnam Management believes that this enhanced
flexibility could
assist each fund in achieving its investment objective.
Further,
Putnam Management believes that each fund's current
limits on
pledging may conflict with the fund's ability to borrow
money to
meet redemption requests or for extraordinary or
emergency
purposes. This conflict arises because banks may
require
borrowers such as the funds to pledge assets in order to
collateralize the amount borrowed. These collateral
requirements
are typically for amounts at least equal to, and often
larger
than, the principal amount of the loan. If any of the
funds
needed to borrow the maximum amount permitted by its
policies
(currently 10% of its total assets), it might be
possible that a
bank would require collateral in excess of 15% of that
fund's
total assets. Thus, the current restriction could have
the
effect of reducing the amount that a fund may borrow in
these
situations.
By making this policy non-fundamental, each fund will
have the
ability to modify or eliminate the restriction to
increase
investment flexibility without the need for shareholder
approval.
Pledging assets does entail certain risks. To the
extent that a
fund pledges its assets, the fund may have less
flexibility in
liquidating its assets. If a large portion of a fund's
assets
were involved, the fund's ability to meet redemption
requests or
other obligations could be delayed.
Required vote. Approval of this proposal by each fund
requires
the affirmative vote of the lesser of (1) more than 50%
of the
outstanding shares of the fund, or (2) 67% or more of
the shares
of the fund present at the meeting if more than 50% of
the
outstanding shares of the fund are present at the
meeting in
person or by proxy.
<PAGE>
4.D.2. ELIMINATING THE FUND'S FUNDAMENTAL INVESTMENT
RESTRICTION WITH RESPECT TO PLEDGING ASSETS
(FOR SHAREHOLDERS OF ARIZONA FUND ONLY)
The Trustees are recommending that the above-referenced
fund's
fundamental investment restriction which limits the
fund's
ability to pledge its assets be eliminated and replaced
by a
standard non-fundamental investment restriction expected
to be
used by other Putnam funds. The current restriction
states that
the fund may not:
"Pledge, hypothecate, mortgage or otherwise
encumber its
assets in excess of 15% of its total assets (taken
at the
lower of cost or current value) in connection with
borrowings permitted by restriction 1 above.
[Restriction 1
referred to in this restriction allows the fund to
borrow up
to 10% of its assets for certain limited purposes.]
Certain state securities laws impose restrictions on the
fund's
ability to pledge its assets, but these limitations are
less
restrictive than the fund's current restriction and are
not
required to be contained in a fundamental policy. For
this
reason, Putnam Management believes that the current
restriction
is unnecessarily restrictive and should be eliminated.
If the
proposal is approved, the Trustees intend to replace
this
restriction with the following non-fundamental
investment
restriction to comply with current state requirements:
"The fund may not ...
Pledge, hypothecate, mortgage or otherwise encumber
its
assets in excess of 33 1/3% of its total assets
(taken
at cost) in connection with permitted borrowings."
This proposal would enable the fund to pledge up to
one-third of
its total assets in connection with fund borrowings;
other
activities which could be deemed to be pledges or other
encumbrances, such as collateral arrangements with
respect to
certain forward commitments, futures contracts and
options
transactions, will not be restricted.
Putnam Management believes that this enhanced
flexibility could
assist the fund in achieving its investment objective.
Further,
Putnam Management believes that the fund's current
limits on
pledging may conflict with the fund's ability to borrow
money to
meet redemption requests or for extraordinary or
emergency
purposes. This conflict arises because banks may
require
borrowers such as the fund to pledge assets in order to
collateralize the amount borrowed. These collateral
requirements
are typically for amounts at least equal to, and often
larger
than, the principal amount of the loan. If the fund
needed to
borrow the maximum amount permitted by its policies
(currently
10% of its total assets), it might be possible that a
bank would
require collateral in excess of 15% of the fund's total
assets.
<PAGE>
Thus, the current restriction could have the effect of
reducing
the amount that the fund may borrow in these situations.
By making this policy non-fundamental, the fund will
have the
ability to modify or eliminate the restriction to
increase
investment flexibility without the need for shareholder
approval.
Pledging assets does entail certain risks. To the
extent that
the fund pledges its assets, the fund may have less
flexibility
in liquidating its assets. If a large portion of the
fund's
assets were involved, the fund's ability to meet
redemption
requests or other obligations could be delayed.
Required vote. Approval of this proposal requires the
affirmative vote of the lesser of (1) more than 50% of
the
outstanding shares of the fund, or (2) 67% or more of
the shares
of the fund present at the meeting if more than 50% of
the
outstanding shares of the fund are present at the
meeting in
person or by proxy.
4.D.3. ELIMINATING THE FUND'S FUNDAMENTAL INVESTMENT
RESTRICTION WITH RESPECT TO PLEDGING ASSETS
(FOR SHAREHOLDERS OF NEW JERSEY FUND ONLY)
The Trustees are recommending that the above-referenced
fund's
fundamental investment restriction which limits the
fund's
ability to pledge its assets be eliminated and replaced
by a
standard non-fundamental investment restriction expected
to be
used by other Putnam funds. The current restriction
states that
the fund may not:
"Pledge, hypothecate, mortgage or otherwise
encumber its
assets in excess of 15% of its total assets (taken
at
current value) and then only to secure borrowings
permitted
by restriction 1 above. (The deposit of underlying
securities and other assets in escrow and
collateral
arrangements with respect to margin for financial
futures
contracts, options on such contracts and on
securities
indices are not deemed to be pledges or other
encumbrances.)
[Restriction 1 referred to in this restriction
allows the
fund to borrow up to 10% of its assets for certain
limited
purposes.]
Certain state securities laws impose restrictions on the
fund's
ability to pledge its assets, but these limitations are
less
restrictive than the fund's current restriction and are
not
required to be contained in a fundamental policy. For
this
reason, Putnam Management believes that the current
restriction
is unnecessarily restrictive and should be eliminated.
If the
proposal is approved, the Trustees intend to replace
this
restriction with the following non-fundamental
investment
restriction to comply with current state requirements:
"The fund may not ...
<PAGE>
Pledge, hypothecate, mortgage or otherwise encumber
its
assets in excess of 33 1/3% of its total assets
(taken
at cost) in connection with permitted borrowings."
This proposal would enable the fund to pledge up to
one-third of
its total assets in connection with fund borrowings;
other
activities which could be deemed to be pledges or other
encumbrances, such as collateral arrangements with
respect to
certain forward commitments, futures contracts and
options
transactions, will not be restricted.
Putnam Management believes that this enhanced
flexibility could
assist the fund in achieving its investment objective.
Further,
Putnam Management believes that the fund's current
limits on
pledging may conflict with the fund's ability to borrow
money to
meet redemption requests or for extraordinary or
emergency
purposes. This conflict arises because banks may
require
borrowers such as the fund to pledge assets in order to
collateralize the amount borrowed. These collateral
requirements
are typically for amounts at least equal to, and often
larger
than, the principal amount of the loan. If the fund
needed to
borrow the maximum amount permitted by its policies
(currently
10% of its total assets), it might be possible that a
bank would
require collateral in excess of 15% of the fund's total
assets.
Thus, the current restriction could have the effect of
reducing
the amount that the fund may borrow in these situations.
By making this policy non-fundamental, the fund will
have the
ability to modify or eliminate the restriction to
increase
investment flexibility without the need for shareholder
approval.
Pledging assets does entail certain risks. To the
extent that
the fund pledges its assets, the fund may have less
flexibility
in liquidating its assets. If a large portion of the
fund's
assets were involved, the fund's ability to meet
redemption
requests or other obligations could be delayed.
Required vote. Approval of this proposal requires the
affirmative vote of the lesser of (1) more than 50% of
the
outstanding shares of the fund, or (2) 67% or more of
the shares
of the fund present at the meeting if more than 50% of
the
outstanding shares of the fund are present at the
meeting in
person or by proxy.
4.E.1. ELIMINATING THE FUND'S FUNDAMENTAL INVESTMENT
RESTRICTION WITH RESPECT TO INVESTMENTS IN
RESTRICTED
SECURITIES
(FOR SHAREHOLDERS OF FLORIDA FUND, MASSACHUSETTS
FUND,
MICHIGAN FUND, MINNESOTA FUND, NEW JERSEY FUND,
OHIO FUND
AND PENNSYLVANIA FUND ONLY)
The Trustees are recommending that each of the
above-referenced
fund's fundamental investment restriction which limits
each
fund's investments in securities subject to restrictions
on
<PAGE>
resale, which are known as "restricted securities," be
eliminated. The current fundamental investment
restriction
states that each fund may not:
"Purchase securities restricted as to resale, if,
as a
result, such investments would exceed 15% of the
value of a
fund's net assets, excluding restricted securities
that have
been determined by the Trustees of the fund (or the
person
designated by them to make such determinations) to
be
readily marketable."
Putnam Management believes the restriction is
unnecessary in
light of current regulatory requirements, which prohibit
each
fund from investing more than 15% of its net assets in
any
combination of (a) securities which are not readily
marketable,
(b) securities restricted as to resale (excluding
securities
determined by the Trustees of a fund (or the person
designated by
the Trustees of a fund to make such determinations) to
be readily
marketable), and (c) repurchase agreements maturing in
more than
seven days.
These requirements are currently reflected in the fund's
non-
fundamental policy with respect to illiquid investments.
Eliminating the fundamental investment restriction
would,
therefore, provide the fund with maximum flexibility to
respond
quickly to legal, regulatory and market developments
regarding
illiquid investments without the need for shareholder
approval.
To the extent a fund invests in illiquid investments,
the fund
may encounter difficulty in determining the fair value
of such
securities for purposes of computing net asset value.
In
addition, a fund could encounter difficulty satisfying
redemption
requests within seven days if it could not readily
dispose of its
illiquid investments.
Required vote. Approval of this proposal by each fund
requires
the affirmative vote of the lesser of (1) more than 50%
of the
outstanding shares of the fund, or (2) 67% or more of
the shares
of the fund present at the meeting if more than 50% of
the
outstanding shares of the fund are present at the
meeting in
person or by proxy.
4.E.2. ELIMINATING THE FUND'S FUNDAMENTAL INVESTMENT
RESTRICTION WITH RESPECT TO INVESTMENTS IN
RESTRICTED
SECURITIES
(FOR SHAREHOLDERS OF ARIZONA FUND ONLY)
The Trustees are recommending that the above-referenced
fund's
fundamental investment restriction which limits the
fund's
investments in securities subject to restrictions on
resale,
which are known as "restricted securities," be
eliminated. The
current fundamental investment restriction states that
the fund
may not:
<PAGE>
"Purchase securities the disposition of which is
restricted
under federal securities law, if, as a result, such
investments would exceed 15% of the value of the
Arizona
Fund's current net assets, excluding restricted
securities
that have been determined by the Trustees of the
Arizona
Fund (or the person designated by them to make such
determinations) to be readily marketable."
Putnam Management believes the restriction is
unnecessary in
light of current regulatory requirements, which prohibit
the fund
from investing more than 15% of its net assets in any
combination
of (a) securities which are not readily marketable, (b)
securities restricted as to resale (excluding securities
determined by the Trustees of the fund (or the person
designated
by the Trustees of the fund to make such determinations)
to be
readily marketable), and (c) repurchase agreements
maturing in
more than seven days.
These requirements are currently reflected in the fund's
non-
fundamental policy with respect to illiquid investments.
Eliminating the fundamental investment restriction
would,
therefore, provide the fund with maximum flexibility to
respond
quickly to legal, regulatory and market developments
regarding
illiquid investments without the need for shareholder
approval.
To the extent the fund invests in illiquid investments,
the fund
may encounter difficulty in determining the fair value
of such
securities for purposes of computing net asset value.
In
addition, the fund could encounter difficulty satisfying
redemption requests within seven days if it could not
readily
dispose of its illiquid investments.
Required vote. Approval of this proposal requires the
affirmative vote of the lesser of (1) more than 50% of
the
outstanding shares of the fund, or (2) 67% or more of
the shares
of the fund present at the meeting if more than 50% of
the
outstanding shares of the fund are present at the
meeting in
person or by proxy.
4.F.1. ELIMINATING THE FUND'S FUNDAMENTAL INVESTMENT
RESTRICTION WITH RESPECT TO CERTAIN OIL, GAS
AND
MINERAL INTERESTS
(FOR SHAREHOLDERS OF MASSACHUSETTS FUND, MICHIGAN
FUND,
MINNESOTA FUND, OHIO FUND AND PENNSYLVANIA FUND
ONLY)
The Trustees are recommending that each of the
above-referenced
fund's fundamental investment restriction with respect
to
investments in oil, gas and mineral leases, rights or
royalty
contracts be eliminated and replaced by a standard
non-fundamental investment restriction expected to be
used by
other Putnam funds. The current restriction states that
each
fund may not:
"Buy or sell oil, gas or other mineral leases,
rights or
royalty contracts."
<PAGE>
Each fund originally adopted the restriction to comply
with
certain state securities law requirements, and while the
restriction is currently required by one state, it is
not
required to be a fundamental policy. If this proposal
is
approved, the Trustees intend to adopt the following
non-fundamental restriction to comply with the remaining
state
requirement:
"The fund may not ...
Buy or sell oil, gas or other mineral leases,
rights or
royalty contracts, although it may purchase
securities which
represent interests in, are secured by interests
in, or
which are issued by issuers which deal in, such
leases,
rights or contracts, and it may acquire and dispose
of such
leases, rights or contracts acquired through the
exercise of
its rights as a holder of debt obligations secured
thereby."
Putnam Management believes that the current restriction
is
unnecessarily restrictive, and could prevent each fund
from
investing in certain opportunities to the fullest extent
that
Putnam Management believes would best serve the fund's
investment
objective. If the proposal is approved, each fund would
be able
to invest, consistent with applicable regulatory
requirements, in
a variety of securities the value of which is dependent
upon the
value of oil, gas and mineral interests, including
securities
which represent interests in, are secured by, or are
issued by
companies which deal in, such interests. Also, in
certain
limited circumstances, each fund would be permitted to
directly
own oil, gas and mineral interests as a result of the
exercise of
its rights in connection with debt obligations it owns.
In such
cases, the ability to acquire and dispose of such
interests may
serve to protect each fund during times where an issuer
of debt
securities is unable to meet its obligations.
By making this policy non-fundamental, each fund will
have the
ability to modify or eliminate the restriction to
increase
investment flexibility without the need for shareholder
approval.
However, given the fund's investment policies, Putnam
Management
has no current intention of causing each fund to invest
in such
securities.
Investments in oil, gas and other mineral leases, rights
or
royalty contracts and in securities which derive their
value in
part from such instruments, entail certain risks. The
prices of
these investments are subject to substantial
fluctuations, and
may be affected by unpredictable economic and political
circumstances such as social, political or military
disturbances,
the taxation and regulatory policies of various
governments, the
activities and policies of OPEC (an organization of
major oil
producing countries), the existence of cartels in such
industries, the discovery of new reserves and the
development of
new techniques for producing, refining and transporting
such
materials and related products, the development of new
technology, energy conservation practices, and the
development of
alternative energy sources and alternative uses for such
<PAGE>
materials and related products. In addition, in order
to enforce
its rights in the event of a default of an issuer of
these
securities, a fund may be required to participate in
various
legal proceedings or take possession of and manage
assets
securing the issuer's obligations. This could increase
the
fund's operating expenses and adversely affect the
fund's net
asset value.
Required vote. Approval of this proposal by each fund
requires
the affirmative vote of the lesser of (1) more than 50%
of the
outstanding shares of the fund, or (2) 67% or more of
the shares
of the fund present at the meeting if more than 50% of
the
outstanding shares of the fund are present at the
meeting in
person or by proxy.
4.F.2. ELIMINATING THE FUND'S FUNDAMENTAL INVESTMENT
RESTRICTION WITH RESPECT TO INVESTMENTS IN
CERTAIN OIL,
GAS AND MINERAL INTERESTS
(FOR SHAREHOLDERS OF FLORIDA FUND ONLY)
The Trustees are recommending that the above-referenced
fund's
fundamental investment restriction with respect to
investments in
oil, gas and mineral leases, rights or royalty contracts
be
eliminated and replaced by an identical standard
non-fundamental
investment restriction expected to be used by other
Putnam funds.
The current restriction states that the fund may not:
"Buy or sell oil, gas or other mineral leases,
rights or
royalty contracts, although it may purchase
securities which
represent interests in, are secured by interests
in, or
which are issued by issuers which deal in, such
leases,
rights, or contracts, and it may acquire or dispose
of such
leases, rights, or contracts acquired through the
exercise
of its rights as a holder of debt obligations
secured
thereby."
The fund originally adopted the restriction to comply
with
certain state securities law requirements, and while the
restriction is currently required by one state, it is
not
required to be a fundamental policy. If this proposal
is
approved, the Trustees intend to adopt an identical
non-fundamental restriction to comply with the remaining
state
requirement.
By making this policy non-fundamental, the fund will be
able to
modify or eliminate the restriction to increase
investment
flexibility without the need for shareholder approval.
However,
given the fund's investment policies, Putnam Management
has no
current intention of causing the fund to invest in such
securities.
Required vote. Approval of this proposal requires the
affirmative vote of the lesser of (1) more than 50% of
the
outstanding shares of the fund, or (2) 67% or more of
the shares
<PAGE>
of the fund present at the meeting if more than 50% of
the
outstanding shares of the fund are present at the
meeting in
person or by proxy.
4.F.3. ELIMINATING THE FUND'S FUNDAMENTAL INVESTMENT
RESTRICTION WITH RESPECT TO INVESTMENTS IN
CERTAIN OIL,
GAS AND MINERAL INTERESTS
(FOR SHAREHOLDERS OF NEW JERSEY FUND ONLY)
The Trustees are recommending that the above-referenced
fund's
fundamental investment restriction with respect to
investments in
oil, gas and mineral leases, rights or royalty contracts
be
eliminated and replaced by a standard non-fundamental
investment
restriction expected to be used by other Putnam funds.
The
current restriction states that the fund may not:
"Buy or sell oil, gas or other mineral leases,
rights or
royalty contracts, although it may purchase
securities of
issuers which deal in, represent interests in, or
are
secured by interests in such leases, rights, or
contracts,
and it may acquire or dispose of such leases,
rights, or
contracts acquired through the exercise of its
rights as a
holder of debt obligations secured thereby."
The fund originally adopted the restriction to comply
with
certain state securities law requirements, and while the
restriction is currently required by one state, it is
not
required to be a fundamental policy. If this proposal
is
approved, the Trustees intend to adopt the following
substantially similar non-fundamental restriction to
comply with
the remaining state requirement:
"The fund may not ...
"Buy or sell oil, gas or other mineral leases,
rights or
royalty contracts, although it may purchase
securities which
represent interests in, are secured by interests
in, or
which are issued by issuers which deal in, such
leases,
rights or contracts, and it may acquire and dispose
of such
leases, rights or contracts acquired through the
exercise of
its rights as a holder of debt obligations secured
thereby."
By making this policy non-fundamental, the fund will be
able to
modify or eliminate the restriction to increase
investment
flexibility without the need for shareholder approval.
However,
given the fund's investment policies, Putnam Management
has no
current intention of causing the fund to invest in such
securities.
Required vote. Approval of this proposal requires the
affirmative vote of the lesser of (1) more than 50% of
the
outstanding shares of the fund, or (2) 67% or more of
the shares
of the fund present at the meeting if more than 50% of
the
outstanding shares of the fund are present at the
meeting in
<PAGE>
person or by proxy.
4.G. ELIMINATING THE FUND'S FUNDAMENTAL INVESTMENT
RESTRICTION
WITH RESPECT TO INVESTING TO GAIN CONTROL OF A
COMPANY'S
MANAGEMENT
(FOR SHAREHOLDERS OF ALL FUNDS)
The Trustees are recommending that the funds'
fundamental
investment restriction which states that the funds may
not
"[ma]ke investments for the purpose of gaining control
of a
company's management" be eliminated. Eliminating the
restriction
would make it clear that each fund can freely exercise
its rights
as a shareholder of the various companies in which it
may invest,
which activities may at times fall under the technical
definition
of control. These rights may include the right to
actively
oppose or support the management of such companies.
Since each
fund invests primarily in fixed-income securities, this
proposal
will not impact the majority of a fund's investments.
Nevertheless, Putnam Management believes it would be in
the best
interest of each fund to eliminate the restriction.
Putnam Management believes that eliminating this
restriction will
allow each fund maximum flexibility to protect the value
of its
investments through influencing management of companies
in which
it may invest. Although Putnam Management believes that
each
fund currently may engage in such activities without
necessarily
violating this restriction, it believes that eliminating
the
restriction will eliminate any potential obstacle to a
fund in
protecting its interests as a shareholder.
This are of corporate activity is highly prone to
litigation, and
whether or not the restriction is eliminated, a fund
could be
drawn into lawsuits related to these activities. Each
fund will
direct its efforts toward those instances where Putnam
Management
believes the potential for benefit to the fund outweighs
potential litigation risks.
Required vote. Approval of this proposal by each fund
requires
the affirmative vote of the lesser of (1) more than 50%
of the
outstanding shares of the fund, or (2) 67% or more of
the shares
of the fund present at the meeting if more than 50% of
the
outstanding shares of the fund are present at the
meeting in
person or by proxy.
4.H. ELIMINATING THE FUND'S FUNDAMENTAL INVESTMENT
RESTRICTION
WITH RESPECT TO INVESTMENTS IN OTHER INVESTMENT
COMPANIES
(FOR SHAREHOLDERS OF NEW JERSEY FUND ONLY)
The Trustees are recommending that the above-referenced
fund's
fundamental investment restriction with respect to
investments in
other investment companies be eliminated and replaced by
a
standard non-fundamental investment restriction expected
to be
<PAGE>
used by other Putnam funds. The current restriction
states that
the fund may not:
"Invest in the securities of other registered
open-end
investment companies, except as they may be
acquired as part
of a merger or consolidation or acquisition of
assets."
The 1940 Act and certain state securities laws impose
limitations
on the fund's ability to invest in other investment
companies,
but these limitations are less restrictive than the
fund's
current restriction and are not required to be contained
in a
fundamental policy. For these reasons, Putnam
Management
believes that the current restriction is unnecessarily
restrictive and should be eliminated. If the proposal
is
approved, the Trustees intend to replace the current
restriction
with the following non-fundamental investment
restriction to
comply with the current requirements:
"The fund may not ...
"Invest in the securities of registered open-end
investment
companies, except as they may be acquired as part
of a
merger or consolidation or acquisition of assets or
by
purchases in the open market involving only
customary
brokers' commissions."
This new non-fundamental restriction would allow the
fund to
invest in other open-end companies in open-market
investments.
Of course, any such investment by the fund would be
subject to
the restrictions imposed under the 1940 Act in effect
from time
to time. Putnam Management believes that this enhanced
flexibility could assist the fund in meeting its
objective.
By making this policy non-fundamental, the fund will
have the
ability to modify or eliminate the restriction to
increase
investment flexibility without the need for shareholder
approval.
Required vote. Approval of this proposal requires the
affirmative vote of the lesser of (1) more than 50% of
the
outstanding shares of the fund, or (2) 67% or more of
the shares
of the fund present at the meeting if more than 50% of
the
outstanding shares of the fund are present at the
meeting in
person or by proxy.
Further Information About Voting and the Shareholder
Meeting
Quorum and Methods of Tabulation. The shareholders of
each fund
vote separately on the proposals presented for their
fund. In
the case of each fund, thirty percent of the shares
entitled to
vote -- present in person or represented by proxy --
constitutes
a quorum for the transaction of business with respect to
any
proposal at the meeting (unless otherwise noted in the
proxy
statement). Shares represented by proxies that reflect
abstentions and "broker non-votes" (i.e., shares held by
brokers
or nominees as to which (i) instructions have not been
received
<PAGE>
from the beneficial owners or the persons entitled to
vote and
(ii) the broker or nominee does not have the
discretionary voting
power on a particular matter) will be counted as shares
that are
present and entitled to vote on the matter for purposes
of
determining the presence of a quorum. Votes cast by
proxy or in
person at the meeting will be counted by persons
appointed by
your fund as tellers for the meeting.
The tellers will count the total number of votes cast
"for"
approval of the proposals for purposes of determining
whether
sufficient affirmative votes have been cast. With
respect to the
election of Trustees and selection of auditors, neither
abstentions nor broker non-votes have any effect on the
outcome
of the proposal. With respect to any other proposals,
abstentions and broker non-votes have the effect of a
negative
vote on the proposal.
Other business. The Trustees know of no other business
to be
brought before the meeting. However, if any other
matters
properly come before the meeting, it is their intention
that
proxies that do not contain specific restrictions to the
contrary
will be voted on such matters in accordance with the
judgment of
the persons named as proxies in the enclosed form of
proxy.
Simultaneous meetings. The meeting of shareholders of
your fund
is called to be held at the same time as the meetings of
shareholders of certain of the other Putnam funds. It
is
anticipated that all meetings will be held
simultaneously. If
any shareholder at the meeting objects to the holding of
a
simultaneous meeting and moves for an adjournment of the
meeting
to a time promptly after the simultaneous meetings, the
persons
named as proxies will vote in favor of such adjournment.
Solicitation of proxies. In addition to soliciting
proxies by
mail, Trustees of each fund and employees of Putnam
Management,
Putnam Fiduciary Trust Company and Putnam Mutual Funds
may
solicit proxies in person or by telephone. Each fund
may also
arrange to have votes recorded by telephone. The
telephone
voting procedure is designed to authenticate
shareholders'
identities, to allow shareholders to authorize the
voting of
their shares in accordance with their instructions and
to confirm
that their instructions have been properly recorded.
Each fund
has been advised by counsel that these procedures are
consistent
with the requirements of applicable law. If these
procedures
were subject to a successful legal challenge, such votes
would
not be counted at the meeting. Your fund is unaware of
any such
challenge at this time. Shareholders would be called at
the
phone number Putnam Investments has in its records for
their
accounts, and would be asked for their Social Security
number or
other identifying information. The shareholders would
then be
given an opportunity to authorize proxies to vote their
shares at
the meeting in accordance with their instructions. To
ensure
that the shareholders' instructions have been recorded
correctly,
they will also receive a confirmation of their
instructions in
the mail. A special toll-free number will be available
in case
the information contained in the confirmation is
incorrect.
<PAGE>
Each fund's Trustees have adopted a general policy of
maintaining
confidentiality in the voting of proxies. Consistent
with this
policy, each fund may solicit proxies from shareholders
who have
not voted their shares or who have abstained from
voting.
Persons holding shares as nominees will upon request be
reimbursed for their reasonable expenses in soliciting
instructions from their principals. Each of the funds
has
retained at its expense D.F. King & Co. Inc., 77 Water
Street,
New York, NY 10055, to aid in the solicitation
instructions for
registered and nominee accounts, for a fee not to exceed
$[fee]
[per fund] plus reasonable out-of-pocket expenses for
mailing and
phone costs.
Revocation of proxies. Proxies, including proxies given
by
telephone, may be revoked at any time before they are
voted by a
written revocation received by the Clerk of your fund,
by
properly executing a later-dated proxy or by attending
the
meeting and voting in person.
Date for receipt of shareholders' proposals for
subsequent
meetings of shareholders. Each of the fund's Agreement
and
Declaration of Trust does not provide for annual
meetings of
shareholders, and each fund does not currently intend to
hold
such a meeting in 1997. Shareholder proposals for
inclusion in
the proxy statement for any subsequent meeting must be
received
by your fund within a reasonable period of time prior to
any such
meeting.
Adjournment. If sufficient votes in favor of any of the
proposals set forth in the Notice of the Meeting are not
received
by the time scheduled for the meeting, the persons named
as
proxies may propose adjournments of the meeting for a
period or
periods of not more than 60 days in the aggregate to
permit
further solicitation of proxies with respect to any of
such
proposals. Any adjournment will require the affirmative
vote of
a majority of the votes cast on the question in person
or by
proxy at the session of the meeting to be adjourned.
The persons
named as proxies will vote in favor of such adjournment
those
proxies which they are entitled to vote in favor of such
proposals. They will vote against such adjournment
those proxies
required to be voted against such proposals. Such fund
pays the
costs of any additional solicitation and of any
adjourned
session. Any proposals for which sufficient favorable
votes have
been received by the time of the meeting may be acted
upon and
considered final regardless of whether the meeting is
adjourned
to permit additional solicitation with respect to any
other
proposal.
Financial information. Each fund will furnish, without
charge,
to any of its shareholders upon request a copy of the
fund's
annual report for its most recent fiscal year, and a
copy of its
semiannual report for any subsequent semiannual period.
Such
requests may be directed to Putnam Investor Services,
P.O. Box
41203, Providence, RI 02940-1203 or 1-800-225-1581.
<PAGE>
Further Information About Your Funds
Limitation of Trustee liability. The Agreement and
Declaration
of Trust of your fund provides that the fund will
indemnify its
Trustees and officers against liabilities and expenses
incurred
in connection with litigation in which they may be
involved
because of their offices with the fund, except if it is
determined in the manner specified in the Agreement and
Declaration of Trust that they have not acted in good
faith in
the reasonable belief that their actions were in the
best
interests of the fund or that such indemnification would
relieve
any officer or Trustee of any liability to the fund or
its
shareholders arising by reason of willful misfeasance,
bad faith,
gross negligence or reckless disregard of his or her
duties.
Your fund, at its expense, provides liability insurance
for the
benefit of its Trustees and officers.
Audit and Nominating Committees. The voting members of
the Audit
Committee of your fund include only Trustees who are not
"interested persons" of the fund by reason of any
affiliation
with Putnam Investments and its affiliates. The Audit
Committee
currently consists of Messrs. Estin (Chairman), Perkins
(without
vote), Putnam, III (without vote), Shapiro, Smith
(without vote),
and Ms. Kennan. The Nominating Committee consists only
of
Trustees who are not "interested persons" of your fund
or Putnam
Management. The Nominating Committee currently consists
of Dr.
Pounds and Ms. Kennan (Co-chairpersons), Ms. Baxter, and
Messrs.
Estin, Hill, Jackson, Patterson, Shapiro, and Thorndike.
Officers and other information. In addition to George
Putnam and
Lawrence J. Lasser, the officers of your fund are as
follows:
Name (age) Office
Year first
elected
to office
Charles Executive Vice President
19__
E. Porter
(58)
Patricia Senior Vice President
19__
C. Flaherty
(49)
John D. Senior Vice President &
19__
Hughes Treasurer
(61)
Gordon Vice President
19__
H. Silver
(49)
Gary N. Vice President
19__
Coburn
(50)
Blake E. Vice President
19__
Anderson
(39)
Howard Vice President
19__
K. Manning*
(43)
Richard Vice President
19__
P. Wyke**
(40)
Leslie Vice President
19__
J. Burke***
(33)
James E. Vice President
19__
Erickson****
(60)
William N. Shiebler*****
Vice President
(54)
19__ John R. Verani (57)
Vice President
19__ Paul M. O'Neil (43)
Vice President
19__ Beverly Marcus (51)
Clerk
19__
__________________________
[Putnam: Please advise us as to Year first elected to
office.
Should we break out each fund individually?]
* Portfolio Manager and Vice President of Arizona,
Michigan
and Minnesota Funds.
** Portfolio Manager and Vice President of Florida,
Massachusetts, Ohio and Pennsylvania Funds.
*** Portfolio Manager and Vice President of New Jersey
Fund.
**** Vice President of all funds except the Minnesota
Fund.
*****President of Putnam Mutual Funds.
All of the officers of your fund are employees of Putnam
Management or its affiliates. Because of their
positions with
Putnam Management or its affiliates or their ownership
of stock
of Marsh & McLennan Companies, Inc., the parent
corporation of
Putnam Management and Putnam Mutual Funds, Messrs.
Putnam, George
Putnam, III, Lasser and Smith (nominees for Trustees of
your
fund), as well as the officers of your fund, will
benefit from
the management fees, distribution fees, underwriting
commissions,
custodian fees, and investor servicing fees paid or
allowed by
the fund.
Assets and shares outstanding of each fund
as of _________________, 1996
Class Class
Class
Fund Name Net Assets A Shares B
M
----------------- ---------- ------- Shares
Shares
--------
- - - -------
Arizona $
Fund
Florida
Fund
Massachusetts
Fund
Michigan
Fund
Minnesota
Fund
New Jersey
Fund
Ohio Fund
Pennsylvania
Fund
<PAGE>
5% beneficial ownership as of August 30, 1996
Arizona
Fund
Persons
beneficially
owning
more
than
5%
of the
fund's
class
A shares
Persons
beneficially
owning
more
than
5%
of the
fund's
class
B shares
Persons
beneficially
owning
more
than
5%
of the
fund's
class
M shares
Florida
Fund
Persons
beneficially
owning
more
than
5%
of the
fund's
class
A shares
Persons
beneficially
owning
more
than
5%
of the
fund's
class
B shares
Persons
beneficially
owning
more
than
5%
of the
fund's
class
M shares
Massachusetts
Fund
Persons
beneficially
owning
more
than
5%
of the
fund's
class
A shares
Persons
beneficially
owning
more
than
5%
of the
fund's
class
B shares
Persons
beneficially
owning
more
than
5%
of the
fund's
class
M shares
Michigan
Fund
Persons
beneficially
owning
more
than
5%
of the
fund's
class
A shares
Persons
beneficially
owning
more
than
5%
of the
fund's
class
B shares
Persons
beneficially
owning
more
than
5%
of the
fund's
class
M shares
Minnesota
Fund
Persons
beneficially
owning
more
than
5%
of the
fund's
class
A shares
Persons
beneficially
owning
more
than
5%
of the
fund's
class
B shares
Persons
beneficially
owning
more
than
5%
of the
fund's
class
M shares
New Jersey
Fund
Persons
beneficially
owning
more
than
5%
of the
fund's
class
A shares
Persons
beneficially
owning
more
than
5%
of the
fund's
class
B shares
Persons
beneficially
owning
more
than
5%
of the
fund's
class
M shares
Ohio Fund
Persons
beneficially
owning
more
than
5%
of the
fund's
class
A shares
Persons
beneficially
owning
more
than
5%
of the
fund's
class
B shares
Persons
beneficially
owning
more
than
5%
of the
fund's
class
M shares
Pennsylvania
Fund
Persons
beneficially
owning
more
than
5%
of the
fund's
class
A shares
Persons
beneficially
owning
more
than
5%
of the
fund's
class
B shares
Persons
beneficially
owning
more
than
5%
of the
fund's
class
M shares
<PAGE>
PUTNAMINVESTMENTS
The Putnam Funds
One Post Office Square
Boston, Massachusetts 02109
Toll-free 1-800-225-1581
PUTNAMINVESTMENTS
This is your PROXY CARD.
Please vote this proxy, sign it below, and return it
promptly in
the envelope provided. Your vote is important.
HAS YOUR ADDRESS CHANGED?
Please use this form to notify us of any change in
address or
telephone number or to provide us with your comments.
Detach
this form from the proxy ballot and return it with your
signed
proxy in the enclosed envelope.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
Street
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
City State
Zip
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
Telephone
DO YOU HAVE ANY COMMENTS?
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
DEAR SHAREHOLDER:
Your vote is important. Please help us to eliminate the
expense
of follow-up mailings by signing and returning this
proxy as soon
as possible. A postage-paid envelope is enclosed for
your
convenience.
THANK YOU!
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
Please fold at perforation before detaching.
<PAGE>
Proxy for a meeting of shareholders to be held on
December 5,
1996, for Putnam Arizona Tax Exempt Income Fund.
This proxy is solicited on behalf of the Trustees of the
fund.
The undersigned shareholder hereby appoints George
Putnam, Hans
H. Estin, and Robert E. Patterson, and each of them
separately,
Proxies, with power of substitution, and hereby
authorizes them
to represent and to vote, as designated below, at the
meeting of
shareholders of Putnam Arizona Tax Exempt Income Fund on
December 5, 1996, at 2:00 p.m., Boston time, and at any
adjournments thereof, all of the shares of the fund that
the
undersigned shareholder would be entitled to vote if
personally
present.
If you complete and sign the proxy, we'll vote it
exactly as you
tell us. If you simply sign the proxy, it will be voted
for
electing Trustees as set forth in Proposal 1 and FOR
Proposals
2.A., 3.B.2, 3.C.2, 3.E.2., 3.F., 3.G.3., 4.A, 4.B.3,
4.C.,
4.D.2, 4.E.2 and 4.G. In their discretion, the Proxies
will also
be authorized to vote upon such other matters that may
properly
come before the meeting.
Note: If you have questions on any of the proposals,
please
call 1-800-225-1581.
PLEASE BE SURE TO SIGN AND DATE THIS PROXY.
Please sign your name exactly as it appears on this
card. If you
are a joint owner, each owner should sign. When signing
as
executor, administrator, attorney, trustee, or guardian,
or as
custodian for a minor, please give your full title as
such. If
you are signing for a corporation, please sign the full
corporate
name and indicate the signer's office. If you are a
partner,
sign in the partnership name.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
Shareholder sign here Date
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
Co-owner sign here Date
<PAGE>
THE TRUSTEES RECOMMEND A VOTE FOR ELECTING ALL OF THE
NOMINEES
FOR TRUSTEES AND FOR THE OTHER PROPOSALS LISTED BELOW.
Please mark your choices / X / in blue or black ink.
1. Proposal to elect Trustees
The nominees for Trustees are: J.A. Baxter, H.H.
Estin, J.A.
Hill, R.J. Jackson, E.T. Kennan, L.J. Lasser, R.E.
Patterson, D.S. Perkins, W.F. Pounds, G. Putnam, G.
Putnam,
III, E. Shapiro, A.J.C. Smith and W.N. Thorndike.
/ / FOR electing all the nominees
(except as indicated to the contrary below)
/ / WITHHOLD authority to vote for all nominees
To withhold authority to vote for one or more of the
nominees,
write those nominees' names below:
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _
_ _ _ _
PROPOSAL TO:
FOR AGAINST
ABSTAIN
2.A. Ratify the selection / / / /
/ /
of Coopers & Lybrand
L.L.P. as the independent
auditors of your
fund.
3. Amend the fund's fundamental
investment restriction
with respect to:
B.2. Investments in the / / / /
/ /
voting securities
of a single issuer.
C.2. Making loans. / / / /
/ /
E.2. Concentration of its / / / /
/ /
assets.
F. Senior securities. / / / /
/ /
G.3. Investments / /
/ /
in commodities.
/ 4. Eliminate
/ the fund's
fundamental
investment
restriction
with respect
to:
A. Investments
in securities
of issuers
in which
management
of the / /
/ /
fund or
Putnam
Investment
Management
owns securities.
B.3. Margin transactions./
/ / /
/ /
/ / C. Short sales./ /
/ /
/ / D.2. Pledging / /
/ /
assets.
/ / E.2. Investments
in restricted
securities. / /
/ /
G. Investing
to gain
/ / control / /
/ /
of a company's
management.
/
/
<PAGE>
PUTNAMINVESTMENTS
This is your PROXY CARD.
Please vote this proxy, sign it below, and return it
promptly in
the envelope provided. Your vote is important.
HAS YOUR ADDRESS CHANGED?
Please use this form to notify us of any change in
address or
telephone number or to provide us with your comments.
Detach
this form from the proxy ballot and return it with your
signed
proxy in the enclosed envelope.
Street
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
City State
Zip
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
Telephone
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
DO YOU HAVE ANY COMMENTS?
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
DEAR SHAREHOLDER:
Your vote is important. Please help us to eliminate the
expense
of follow-up mailings by signing and returning this
proxy as soon
as possible. A postage-paid envelope is enclosed for
your
convenience.
THANK YOU!
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
Please fold at perforation before detaching.
<PAGE>
Proxy for a meeting of shareholders to be held on
December 5,
1996, for Putnam Florida Tax Exempt Income Fund.
This proxy is solicited on behalf of the Trustees of the
fund.
The undersigned shareholder hereby appoints George
Putnam, Hans
H. Estin, and Robert E. Patterson, and each of them
separately,
Proxies, with power of substitution, and hereby
authorizes them
to represent and to vote, as designated below, at the
meeting of
shareholders of Putnam Florida Tax Exempt Income Fund on
December
5, 1996, at 2:00 p.m., Boston time, and at any
adjournments
thereof, all of the shares of the fund that the
undersigned
shareholder would be entitled to vote if personally
present.
If you complete and sign the proxy, we'll vote it
exactly as you
tell us. If you simply sign the proxy, it will be voted
for
electing Trustees as set forth in Proposal 1 and FOR
Proposals
2.B., 3.B.2, 3.C.1, 3.E.1, 3.F., 3.G.1, 4.A., 4.B.1,
4.C., 4.D.1,
4.E.1, 4.F.2 and 4.G. In their discretion, the Proxies
will also
be authorized to vote upon such other matters that may
properly
come before the meeting.
Note: If you have questions on any of the proposals,
please
call 1-800-225-1581.
PLEASE BE SURE TO SIGN AND DATE THIS PROXY.
Please sign your name exactly as it appears on this
card. If you
are a joint owner, each owner should sign. When signing
as
executor, administrator, attorney, trustee, or guardian,
or as
custodian for a minor, please give your full title as
such. If
you are signing for a corporation, please sign the full
corporate
name and indicate the signer's office. If you are a
partner,
sign in the partnership name.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
Shareholder sign here Date
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _
_ _ _ _
Co-owner sign here Date
<PAGE>
THE TRUSTEES RECOMMEND A VOTE FOR ELECTING ALL OF THE
NOMINEES
FOR TRUSTEES AND FOR THE OTHER PROPOSALS LISTED BELOW.
Please mark your choices / X / in blue or black ink.
1. Proposal to elect Trustees
The nominees for Trustees are: J.A. Baxter, H.H.
Estin, J.A.
Hill, R.J. Jackson, E.T. Kennan, L.J. Lasser, R.E.
Patterson, D.S. Perkins, W.F. Pounds, G. Putnam, G.
Putnam,
III, E. Shapiro, A.J.C. Smith and W.N. Thorndike.
/ / FOR electing all the nominees
(except as indicated to the contrary below)
/ / WITHHOLD authority to vote for all nominees
To withhold authority to vote for one or more of the
nominees,
write those nominees' names below:
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
PROPOSAL TO:
FOR AGAINST
ABSTAIN
2.B. Ratify the selection / / / /
/ /
of Price Waterhouse
LLP as the independent
auditors of your fund.
3. Amend the fund's fundamental
investment restriction
with respect to:
B.2. Investments in the voting
securities of a single / / / /
/ /
issuer.
C.1. Making loans. / / / /
/ /
E.1. Concentration of its / / / /
/ /
assets.
F. Senior securities. / / /
/ /
/
G.1. Investments in commodities./ / /
/ /
/
4. Eliminate
the
fund's
fundamental
investment
restriction
with
respect
to:
A. Investments
in securities
of issuers
in which
management
of the / /
/ /
fund
or Putnam
Investment
Management
owns
securities.
B.1. Margin / /
/ /
transactions.
/ /
/ / C. Short / /
/ /
sales.
/ / D.1. Pledging / /
/ /
assets.
/ / E.1. Investments
in restricted/
/ / /
securities.
F.2. Investments/ /
/ /
/ / in certain
oil,
gas
and
mineral
interests.
/ G. Investing/ /
/ /
/ to gain
control
of a
company's
management.
/
/
<PAGE>
PUTNAMINVESTMENTS
This is your PROXY CARD.
Please vote this proxy, sign it below, and return it
promptly in
the envelope provided. Your vote is important.
HAS YOUR ADDRESS CHANGED?
Please use this form to notify us of any change in
address or
telephone number or to provide us with your comments.
Detach
this form from the proxy ballot and return it with your
signed
proxy in the enclosed envelope.
Street
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
City State
Zip
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
Telephone
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
DO YOU HAVE ANY COMMENTS?
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
DEAR SHAREHOLDER:
Your vote is important. Please help us to eliminate the
expense
of follow-up mailings by signing and returning this
proxy as soon
as possible. A postage-paid envelope is enclosed for
your
convenience.
THANK YOU!
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _
_ _ _ _
Please fold at perforation before detaching.
<PAGE>
Proxy for a meeting of shareholders to be held on
December 5,
1996, for Putnam Massachusetts Tax Exempt Income Fund.
This proxy is solicited on behalf of the Trustees of the
fund.
The undersigned shareholder hereby appoints George
Putnam, Hans
H. Estin, and Robert E. Patterson, and each of them
separately,
Proxies, with power of substitution, and hereby
authorizes them
to represent and to vote, as designated below, at the
meeting of
shareholders of Putnam Massachusetts Tax Exempt Income
Fund on
December 5, 1996, at 2:00 p.m., Boston time, and at any
adjournments thereof, all of the shares of the fund that
the
undersigned shareholder would be entitled to vote if
personally
present.
If you complete and sign the proxy, we'll vote it
exactly as you
tell us. If you simply sign the proxy, it will be voted
for
electing Trustees as set forth in Proposal 1 and FOR
Proposals
2.B., 3.A., 3.B.1, 3.C.1, 3.D., 3.E.1, 3.F., 3.G.2,
4.A., 4.B.2,
4.C., 4.D.1, 4.E.1, 4.F.1 and 4.G. In their discretion,
the
Proxies will also be authorized to vote upon such other
matters
that may properly come before the meeting.
Note: If you have questions on any of the proposals,
please
call 1-800-225-1581.
PLEASE BE SURE TO SIGN AND DATE THIS PROXY.
Please sign your name exactly as it appears on this
card. If you
are a joint owner, each owner should sign. When signing
as
executor, administrator, attorney, trustee, or guardian,
or as
custodian for a minor, please give your full title as
such. If
you are signing for a corporation, please sign the full
corporate
name and indicate the signer's office. If you are a
partner,
sign in the partnership name.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
Shareholder sign here Date
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
Co-owner sign here Date
<PAGE>
THE TRUSTEES RECOMMEND A VOTE FOR ELECTING ALL OF THE
NOMINEES
FOR TRUSTEES AND FOR THE OTHER PROPOSALS LISTED BELOW.
Please mark your choices / X / in blue or black ink.
1. Proposal to elect Trustees
The nominees for Trustees are: J.A. Baxter, H.H.
Estin, J.A.
Hill, R.J. Jackson, E.T. Kennan, L.J. Lasser, R.E.
Patterson, D.S. Perkins, W.F. Pounds, G. Putnam, G.
Putnam,
III, E. Shapiro, A.J.C. Smith and W.N. Thorndike.
/ / FOR electing all the nominees
(except as indicated to the contrary below)
/ / WITHHOLD authority to vote for all nominees
To withhold authority to vote for one or more of the
nominees,
write those nominees' names below:
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _
PROPOSAL TO:
FOR AGAINST
ABSTAIN
2.B. Ratify the selection / / / /
/ /
of Price Waterhouse
LLP as the independent
auditors of your fund.
3. Amend the fund's fundamental
investment restriction
with respect to:
A. Diversification.
/ / / /
/ /
B.1. Investments in the
voting securities / / / /
/ /
of a single issuer.
C.1. Making loans. / / / /
/ /
/ / / /
/ /
D. Investments in real
estate.
E.1. Concentration/ /
/ /
of its
assets.
/ / F. Senior / /
/ /
securities.
/ / G.2. Investments/ /
/ /
in commodities.
/ 4. Eliminate
/ the fund's
fundamental
investment
restriction
with respect
to:
A. Investments
in securities
of issuers
in which
management
of the / /
/ /
fund or
Putnam
Investment
Management
owns securities.
B.2. Margin / /
/ /
transactions.
/ /
/ / C. Short sales./ /
/ /
/ / D.1. Pledging / /
/ /
assets.
/ / E.1. Investments
in restricted/ /
/ /
securities.
F.1. Investments/ /
/ /
/ / in certain
oil, gas
and mineral
interests.
/ G. Investing / /
/ /
/ to gain
control
of a company's
management.
/
/
<PAGE>
PUTNAMINVESTMENTS
This is your PROXY CARD.
Please vote this proxy, sign it below, and return it
promptly in
the envelope provided. Your vote is important.
HAS YOUR ADDRESS CHANGED?
Please use this form to notify us of any change in
address or
telephone number or to provide us with your comments.
Detach
this form from the proxy ballot and return it with your
signed
proxy in the enclosed envelope.
Street
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
City State
Zip
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
Telephone
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
DO YOU HAVE ANY COMMENTS?
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
DEAR SHAREHOLDER:
Your vote is important. Please help us to eliminate the
expense
of follow-up mailings by signing and returning this
proxy as soon
as possible. A postage-paid envelope is enclosed for
your
convenience.
THANK YOU!
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _
_ _ _ _
Please fold at perforation before detaching.
<PAGE>
Proxy for a meeting of shareholders to be held on
December 5,
1996, for Putnam Michigan Tax Exempt Income Fund.
This proxy is solicited on behalf of the Trustees of the
fund.
The undersigned shareholder hereby appoints George
Putnam, Hans
H. Estin, and Robert E. Patterson, and each of them
separately,
Proxies, with power of substitution, and hereby
authorizes them
to represent and to vote, as designated below, at the
meeting of
shareholders of Putnam Michigan Tax Exempt Income Fund
on
December 5, 1996, at 2:00 p.m., Boston time, and at any
adjournments thereof, all of the shares of the fund that
the
undersigned shareholder would be entitled to vote if
personally
present.
If you complete and sign the proxy, we'll vote it
exactly as you
tell us. If you simply sign the proxy, it will be voted
for
electing Trustees as set forth in Proposal 1 and FOR
Proposals
2.A., 3.A., 3.B.1, 3.C.1, 3.D., 3.E.1, 3.F., 3.G.2.,
4.A., 4.B.2,
4.C., 4.D.1, 4.E.1, 4.F.1 and 4.G. In their discretion,
the
Proxies will also be authorized to vote upon such other
matters
that may properly come before the meeting.
Note: If you have questions on any of the proposals,
please
call 1-800-225-1581.
PLEASE BE SURE TO SIGN AND DATE THIS PROXY.
Please sign your name exactly as it appears on this
card. If you
are a joint owner, each owner should sign. When signing
as
executor, administrator, attorney, trustee, or guardian,
or as
custodian for a minor, please give your full title as
such. If
you are signing for a corporation, please sign the full
corporate
name and indicate the signer's office. If you are a
partner,
sign in the partnership name.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
Shareholder sign here Date
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
Co-owner sign here Date
<PAGE>
THE TRUSTEES RECOMMEND A VOTE FOR ELECTING ALL OF THE
NOMINEES
FOR TRUSTEES AND FOR THE OTHER PROPOSALS LISTED BELOW.
Please mark your choices / X / in blue or black ink.
1. Proposal to elect Trustees
The nominees for Trustees are: J.A. Baxter, H.H.
Estin, J.A.
Hill, R.J. Jackson, E.T. Kennan, L.J. Lasser, R.E.
Patterson, D.S. Perkins, W.F. Pounds, G. Putnam, G.
Putnam,
III, E. Shapiro, A.J.C. Smith and W.N. Thorndike.
/ / FOR electing all the nominees
(except as indicated to the contrary below)
/ / WITHHOLD authority to vote for all nominees
To withhold authority to vote for one or more of the
nominees,
write those nominees' names below:
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _
PROPOSAL TO:
FOR AGAINST
ABSTAIN
2.A. Ratify the selection / / / /
/ /
of Coopers & Lybrand
L.L.P. as the independent
auditors of your
fund.
3. Amend the fund's fundamental
investment restriction
with respect to:
A. Diversification.
/ / / /
/ /
B.1. Investments in the
voting securities / / / /
/ /
of a single issuer.
C.1. Making loans. / / / /
/ /
/ / / /
/ /
D. Investments in real
estate.
E.1. Concentration/ /
/ /
of its
assets.
/ / F. Senior / /
/ /
securities.
/ / G.2. Investments/ /
/ /
in commodities.
/ 4. Eliminate
/ the fund's
fundamental
investment
restriction
with respect
to:
A. Investments
in securities
of issuers
in which
management
of the / /
/ /
fund or
Putnam
Investment
Management
owns securities.
B.2. Margin / /
/ /
transactions.
/ /
/ / C. Short sales./ /
/ /
/ / D.1. Pledging / /
/ /
assets.
/ / E.1. Investments
in restricted/ /
/ /
securities.
F.1. Investments/ /
/ /
/ / in certain
oil, gas
and mineral
interests.
/ G. Investing / /
/ /
/ to gain
control
of a company's
management.
/
/
<PAGE>
PUTNAMINVESTMENTS
This is your PROXY CARD.
Please vote this proxy, sign it below, and return it
promptly in
the envelope provided. Your vote is important.
HAS YOUR ADDRESS CHANGED?
Please use this form to notify us of any change in
address or
telephone number or to provide us with your comments.
Detach
this form from the proxy ballot and return it with your
signed
proxy in the enclosed envelope.
Street
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
City State
Zip
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
Telephone
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
DO YOU HAVE ANY COMMENTS?
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
DEAR SHAREHOLDER:
Your vote is important. Please help us to eliminate the
expense
of follow-up mailings by signing and returning this
proxy as soon
as possible. A postage-paid envelope is enclosed for
your
convenience.
THANK YOU!
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _
_ _ _ _
Please fold at perforation before detaching.
<PAGE>
Proxy for a meeting of shareholders to be held on
December 5,
1996, for Putnam Minnesota Tax Exempt Income Fund.
This proxy is solicited on behalf of the Trustees of the
fund.
The undersigned shareholder hereby appoints George
Putnam, Hans
H. Estin, and Robert E. Patterson, and each of them
separately,
Proxies, with power of substitution, and hereby
authorizes them
to represent and to vote, as designated below, at the
meeting of
shareholders of Putnam Minnesota Tax Exempt Income Fund
on
December 5, 1996, at 2:00 p.m., Boston time, and at any
adjournments thereof, all of the shares of the fund that
the
undersigned shareholder would be entitled to vote if
personally
present.
If you complete and sign the proxy, we'll vote it
exactly as you
tell us. If you simply sign the proxy, it will be voted
for
electing Trustees as set forth in Proposal 1 and FOR
Proposals
2.B., 3.A., 3.B.1, 3.C.1, 3.D., 3.E.1, 3.F., 3.G.2.,
4.A., 4.B.2,
4.C., 4.D.1, 4.E.1, 4.F.1 and 4.G. In their discretion,
the
Proxies will also be authorized to vote upon such other
matters
that may properly come before the meeting.
Note: If you have questions on any of the proposals,
please
call 1-800-225-1581.
PLEASE BE SURE TO SIGN AND DATE THIS PROXY.
Please sign your name exactly as it appears on this
card. If you
are a joint owner, each owner should sign. When signing
as
executor, administrator, attorney, trustee, or guardian,
or as
custodian for a minor, please give your full title as
such. If
you are signing for a corporation, please sign the full
corporate
name and indicate the signer's office. If you are a
partner,
sign in the partnership name.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
Shareholder sign here Date
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
Co-owner sign here Date
<PAGE>
THE TRUSTEES RECOMMEND A VOTE FOR ELECTING ALL OF THE
NOMINEES
FOR TRUSTEES AND FOR THE OTHER PROPOSALS LISTED BELOW.
Please mark your choices / X / in blue or black ink.
1. Proposal to elect Trustees
The nominees for Trustees are: J.A. Baxter, H.H.
Estin, J.A.
Hill, R.J. Jackson, E.T. Kennan, L.J. Lasser, R.E.
Patterson, D.S. Perkins, W.F. Pounds, G. Putnam, G.
Putnam,
III, E. Shapiro, A.J.C. Smith and W.N. Thorndike.
/ / FOR electing all the nominees
(except as indicated to the contrary below)
/ / WITHHOLD authority to vote for all nominees
To withhold authority to vote for one or more of the
nominees,
write those nominees' names below:
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _
PROPOSAL TO:
FOR AGAINST
ABSTAIN
2.B. Ratify the selection / / / /
/ /
of Price Waterhouse
L.L.P. as the independent
auditors of your fund.
3. Amend the fund's fundamental
investment restriction
with respect to:
A. Diversification.
/ / / /
/ /
B.1. Investments in the
voting securities / / / /
/ /
of a single issuer.
C.1. Making loans. / / / /
/ /
/ / / /
/ /
D. Investments in real
estate.
E.1. Concentration/ /
/ /
of its
assets.
/ / F. Senior / /
/ /
securities.
/ / G.2. Investments/ /
/ /
in commodities.
/ 4. Eliminate
/ the fund's
fundamental
investment
restriction
with respect
to:
A. Investments
in securities
of issuers
in which
management
of the / /
/ /
fund or
Putnam
Investment
Management
owns securities.
B.2. Margin / /
/ /
transactions.
/ /
/ / C. Short sales./ /
/ /
/ / D.1. Pledging / /
/ /
assets.
/ / E.1. Investments
in restricted/ /
/ /
securities.
F.1. Investments/ /
/ /
/ / in certain
oil, gas
and mineral
interests.
/ G. Investing / /
/ /
/ to gain
control
of a company's
management.
/
/
<PAGE>
PUTNAMINVESTMENTS
This is your PROXY CARD.
Please vote this proxy, sign it below, and return it
promptly in
the envelope provided. Your vote is important.
HAS YOUR ADDRESS CHANGED?
Please use this form to notify us of any change in
address or
telephone number or to provide us with your comments.
Detach
this form from the proxy ballot and return it with your
signed
proxy in the enclosed envelope.
Street
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
City State
Zip
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
Telephone
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
DO YOU HAVE ANY COMMENTS?
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
DEAR SHAREHOLDER:
Your vote is important. Please help us to eliminate the
expense
of follow-up mailings by signing and returning this
proxy as soon
as possible. A postage-paid envelope is enclosed for
your
convenience.
THANK YOU!
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _
_ _ _ _
Please fold at perforation before detaching.
<PAGE>
Proxy for a meeting of shareholders to be held on
December 5,
1996, for Putnam Ohio Tax Exempt Income Fund.
This proxy is solicited on behalf of the Trustees of the
fund.
The undersigned shareholder hereby appoints George
Putnam, Hans
H. Estin, and Robert E. Patterson, and each of them
separately,
Proxies, with power of substitution, and hereby
authorizes them
to represent and to vote, as designated below, at the
meeting of
shareholders of Putnam Ohio Tax Exempt Income Fund on
December 5,
1996, at 2:00 p.m., Boston time, and at any adjournments
thereof,
all of the shares of the fund that the undersigned
shareholder
would be entitled to vote if personally present.
If you complete and sign the proxy, we'll vote it
exactly as you
tell us. If you simply sign the proxy, it will be voted
for
electing Trustees as set forth in Proposal 1 and FOR
Proposals
2.A., 3.A., 3.B.1, 3.C.1, 3.D., 3.E.1, 3.F., 3.G.2.,
4.A., 4.B.2,
4.C., 4.D.1, 4.E.1, 4.F.1 and 4.G. In their discretion,
the
Proxies will also be authorized to vote upon such other
matters
that may properly come before the meeting.
Note: If you have questions on any of the proposals,
please
call 1-800-225-1581.
PLEASE BE SURE TO SIGN AND DATE THIS PROXY.
Please sign your name exactly as it appears on this
card. If you
are a joint owner, each owner should sign. When signing
as
executor, administrator, attorney, trustee, or guardian,
or as
custodian for a minor, please give your full title as
such. If
you are signing for a corporation, please sign the full
corporate
name and indicate the signer's office. If you are a
partner,
sign in the partnership name.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
Shareholder sign here Date
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
Co-owner sign here Date
<PAGE>
THE TRUSTEES RECOMMEND A VOTE FOR ELECTING ALL OF THE
NOMINEES
FOR TRUSTEES AND FOR THE OTHER PROPOSALS LISTED BELOW.
Please mark your choices / X / in blue or black ink.
1. Proposal to elect Trustees
The nominees for Trustees are: J.A. Baxter, H.H.
Estin, J.A.
Hill, R.J. Jackson, E.T. Kennan, L.J. Lasser, R.E.
Patterson, D.S. Perkins, W.F. Pounds, G. Putnam, G.
Putnam,
III, E. Shapiro, A.J.C. Smith and W.N. Thorndike.
/ / FOR electing all the nominees
(except as indicated to the contrary below)
/ / WITHHOLD authority to vote for all nominees
To withhold authority to vote for one or more of the
nominees,
write those nominees' names below:
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _
PROPOSAL TO:
FOR AGAINST
ABSTAIN
2.A. Ratify the selection / / / /
/ /
of Coopers & Lybrand
L.L.P. as the independent
auditors of your fund.
3. Amend the fund's fundamental
investment restriction
with respect to:
A. Diversification.
/ / / /
/ /
B.1. Investments in the
voting securities / / / /
/ /
of a single issuer.
C.1. Making loans. / / / /
/ /
/ / / /
/ /
D. Investments in real
estate.
E.1. Concentration/ /
/ /
of its
assets.
/ / F. Senior / /
/ /
securities.
/ / G.2. Investments/ /
/ /
in commodities.
/ 4. Eliminate
/ the fund's
fundamental
investment
restriction
with respect
to:
A. Investments
in securities
of issuers
in which
management
of the / /
/ /
fund or
Putnam
Investment
Management
owns securities.
B.2. Margin / /
/ /
transactions.
/ /
/ / C. Short sales./ /
/ /
/ / D.1. Pledging / /
/ /
assets.
/ / E.1. Investments
in restricted/ /
/ /
securities.
F.1. Investments/ /
/ /
/ / in certain
oil, gas
and mineral
interests.
/ G. Investing / /
/ /
/ to gain
control
of a company's
management.
/
/
<PAGE>
PUTNAMINVESTMENTS
This is your PROXY CARD.
Please vote this proxy, sign it below, and return it
promptly in
the envelope provided. Your vote is important.
HAS YOUR ADDRESS CHANGED?
Please use this form to notify us of any change in
address or
telephone number or to provide us with your comments.
Detach
this form from the proxy ballot and return it with your
signed
proxy in the enclosed envelope.
Street
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
City State
Zip
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
Telephone
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
DO YOU HAVE ANY COMMENTS?
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
DEAR SHAREHOLDER:
Your vote is important. Please help us to eliminate the
expense
of follow-up mailings by signing and returning this
proxy as soon
as possible. A postage-paid envelope is enclosed for
your
convenience.
THANK YOU!
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
Please fold at perforation before detaching
<PAGE>
Proxy for a meeting of shareholders to be held on
December 5,
1996, for Putnam New Jersey Tax Exempt Income Fund.
This proxy is solicited on behalf of the Trustees of the
fund.
The undersigned shareholder hereby appoints George
Putnam, Hans
H. Estin, and Robert E. Patterson, and each of them
separately,
Proxies, with power of substitution, and hereby
authorizes them
to represent and to vote, as designated below, at the
meeting of
shareholders of Putnam New Jersey Tax Exempt Income Fund
on
December 5, 1996, at 2:00 p.m., Boston time, and at any
adjournments thereof, all of the shares of the fund that
the
undersigned shareholder would be entitled to vote if
personally
present.
If you complete and sign the proxy, we'll vote it
exactly as you
tell us. If you simply sign the proxy, it will be voted
for
electing Trustees as set forth in Proposal 1 and FOR
Proposals
2.A., 3.B.2, 3.C.1, 3.E.1, 3.F., 3.G.1, 4.A., 4.B.1,
4.C., 4.D.3,
4.E.1, 4.F.3, 4.G. and 4.H. In their discretion, the
Proxies
will also be authorized to vote upon such other matters
that may
properly come before the meeting.
Note: If you have questions on any of the proposals,
please
call 1-800-225-1581.
PLEASE BE SURE TO SIGN AND DATE THIS PROXY.
Please sign your name exactly as it appears on this
card. If you
are a joint owner, each owner should sign. When signing
as
executor, administrator, attorney, trustee, or guardian,
or as
custodian for a minor, please give your full title as
such. If
you are signing for a corporation, please sign the full
corporate
name and indicate the signer's office. If you are a
partner,
sign in the partnership name.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
Shareholder sign here Date
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
Co-owner sign here Date
<PAGE>
THE TRUSTEES RECOMMEND A VOTE FOR ELECTING ALL OF THE
NOMINEES
FOR TRUSTEES AND FOR THE OTHER PROPOSALS LISTED BELOW.
Please mark your choices / X / in blue or black ink.
1. Proposal to elect Trustees
The nominees for Trustees are: J.A. Baxter, H.H.
Estin, J.A.
Hill, R.J. Jackson, E.T. Kennan, L.J. Lasser, R.E.
Patterson, D.S. Perkins, W.F. Pounds, G. Putnam, G.
Putnam,
III, E. Shapiro, A.J.C. Smith and W.N. Thorndike.
/ / FOR electing all the nominees
(except as indicated to the contrary below)
/ / WITHHOLD authority to vote for all nominees
To withhold authority to vote for one or more of the
nominees,
write those nominees' names below:
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
PROPOSAL TO:
FOR AGAINST
ABSTAIN
2.A. Ratify the selection / / / /
/ /
of Coopers & Lybrand
L.L.P. as the independent
auditors of your fund.
3. Amend the fund's fundamental
investment restriction
with respect to:
B.2. Investments in the
voting securities / / / /
/ /
of a single issuer.
C.1. Making loans. / / / /
/ /
E.1. Concentration of its / / / /
/ /
assets.
F. Senior securities. / / / /
/ /
G.1. Investments in commodities./ / /
/ / /
4. Eliminate
the fund's
fundamental
investment
restriction
with
respect
to:
A. Investments
in securities
of issuers
in which
management
of the / /
/ /
fund
or Putnam
Investment
Management
owns
securities.
B.1. Margin / /
/ /
transactions.
/ /
/ / C. Short / /
/ /
sales.
/ / D.3. Pledging / /
/ /
assets.
/ / E.1. Investments
in restricted/ /
/ /
securities.
F.3. Investments/ /
/ /
/ / in certain
oil,
gas and
mineral
interests.
/ G. Investing / /
/ /
/ to gain
control
of a
company's
management.
/ H. Investments/ /
/ /
/ in other
investment
companies.
/
/
<PAGE>
PUTNAMINVESTMENTS
This is your PROXY CARD.
Please vote this proxy, sign it below, and return it
promptly in
the envelope provided. Your vote is important.
HAS YOUR ADDRESS CHANGED?
Please use this form to notify us of any change in
address or
telephone number or to provide us with your comments.
Detach
this form from the proxy ballot and return it with your
signed
proxy in the enclosed envelope.
Street
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
City State
Zip
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
Telephone
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
DO YOU HAVE ANY COMMENTS?
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
DEAR SHAREHOLDER:
Your vote is important. Please help us to eliminate the
expense
of follow-up mailings by signing and returning this
proxy as soon
as possible. A postage-paid envelope is enclosed for
your
convenience.
THANK YOU!
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
Please fold at perforation before detaching.
<PAGE>
Proxy for a meeting of shareholders to be held on
December 5,
1996, for Putnam Pennsylvania Tax Exempt Income Fund.
This proxy is solicited on behalf of the Trustees of the
fund.
The undersigned shareholder hereby appoints George
Putnam, Hans
H. Estin, and Robert E. Patterson, and each of them
separately,
Proxies, with power of substitution, and hereby
authorizes them
to represent and to vote, as designated below, at the
meeting of
shareholders of Putnam Pennsylvania Tax Exempt Income
Fund on
December 5, 1996, at 2:00 p.m., Boston time, and at any
adjournments thereof, all of the shares of the fund that
the
undersigned shareholder would be entitled to vote if
personally
present.
If you complete and sign the proxy, we'll vote it
exactly as you
tell us. If you simply sign the proxy, it will be voted
for
electing Trustees as set forth in Proposal 1 and FOR
Proposals
2.B., 3.B.1, 3.C.1, 3.D., 3.E.1, 3.F., 3.G.1, 4.A.,
4.B.1, 4.C.,
4.D.1, 4.E.1, 4.F.1 and 4.G. In their discretion, the
Proxies
will also be authorized to vote upon such other matters
that may
properly come before the meeting.
Note: If you have questions on any of the proposals,
please
call 1-800-225-1581.
PLEASE BE SURE TO SIGN AND DATE THIS PROXY.
Please sign your name exactly as it appears on this
card. If you
are a joint owner, each owner should sign. When signing
as
executor, administrator, attorney, trustee, or guardian,
or as
custodian for a minor, please give your full title as
such. If
you are signing for a corporation, please sign the full
corporate
name and indicate the signer's office. If you are a
partner,
sign in the partnership name.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
Shareholder sign here Date
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
Co-owner sign here Date
<PAGE>
THE TRUSTEES RECOMMEND A VOTE FOR ELECTING ALL OF THE
NOMINEES
FOR TRUSTEES AND FOR THE OTHER PROPOSALS LISTED BELOW.
Please mark your choices / X / in blue or black ink.
1. Proposal to elect Trustees
The nominees for Trustees are: J.A. Baxter, H.H.
Estin, J.A.
Hill, R.J. Jackson, E.T. Kennan, L.J. Lasser, R.E.
Patterson, D.S. Perkins, W.F. Pounds, G. Putnam, G.
Putnam,
III, E. Shapiro, A.J.C. Smith and W.N. Thorndike.
/ / FOR electing all the nominees
(except as indicated to the contrary below)
/ / WITHHOLD authority to vote for all nominees
To withhold authority to vote for one or more of the
nominees,
write those nominees' names below:
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _
PROPOSAL TO:
FOR AGAINST
ABSTAIN
2.B. Ratify the selection / / / /
/ /
of Price Waterhouse
LLP as the independent
auditors of your fund.
3. Amend the fund's fundamental
investment restriction
with respect to:
B.1. Investments in the
voting securities / / / /
/ /
of a single issuer.
C.1. Making loans. / / / /
/ /
/ / / /
/ /
D. Investments in real
estate.
E.1. Concentration of its / / / /
/ /
assets.
F. Senior / /
/ /
securities.
/ / G.1. Investments/ /
/ /
in commodities.
/ 4. Eliminate
/ the fund's
fundamental
investment
restriction
with respect
to:
A. Investments
in securities
of issuers
in which
management
of the / /
/ /
fund or
Putnam
Investment
Management
owns securities.
B.1. Margin / /
/ /
transactions.
/ /
/ / C. Short sales./ /
/ /
/ / D.1. Pledging / /
/ /
assets.
/ / E.1. Investments
in restricted/ /
/ /
securities.
F.1. Investments/ /
/ /
/ / in certain
oil, gas
and mineral
interests.
/ G. Investing / /
/ /
/ to gain
control
of a company's
management.
/
/
<PAGE>
lipsett/106290.111/proxys/ny_muni3.wpf
