SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(a)
OF THE SECURITIES EXCHANGE ACT OF 1934
(Amendment No. )
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Filed by the Registrant / X /
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Filed by a party other than the Registrant / /
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Check the appropriate box:
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/ / Preliminary Proxy Statement
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/ / Confidential, for Use of the Commission Only (as permitted by
---- Rule 14a-6(e) (2))
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/ X / Definitive Proxy Statement
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/ / Definitive Additional Materials
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/ / Soliciting Material Pursuant to Sec. 240.14a- 11(c) or
Sec. 240.14a - 12
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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 Registrant as Specified In Its Charter)
(Name of Person(s) Filing Proxy Statement if other than
Registrant)
Payment of Filing Fee (Check the appropriate box):
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/ / No fee required
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/ / Fee computed on table below per Exchange Act Rule 14a-6(i)(1)
and
0-11
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(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 (set forth the amount on which the
filing fee
is calculated and state how it was determined) :
(4) Proposed maximum aggregate value of transaction:
(5) Total fee paid:
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/ X / Fee paid previously with preliminary materials.
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/ / 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 10 and 11 .
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. . . . . . . . . . . . . . . . . . . . . 10
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
13 .
2.A. Ratifying the selection by the Trustees of the
independent auditors of your fund for its current fiscal
year. See page 30 . (For Shareholders of
the 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 30 . (For Shareholders of
the Florida Fund, Massachusetts Fund, Minnesota
Fund and Pennsylvania Fund only)
3.A.1 . Approving an amendment to the fund's fundamental
investment restriction with respect to
diversification. See page 32 . (For
Shareholders of the Massachusetts Fund,
Michigan Fund, Minnesota Fund and Ohio Fund only)
3.A.2. Approving an amendment to the fund's fundamental
investment restriction with respect to diversification. See
page 34.
(For Shareholders of the Pennsylvania Fund only)
3.B.1. Approving an amendment to the fund's fundamental
investment restriction with respect to investments in the
voting securities of a single issuer. See page
35 . (For Shareholders of the 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
36 . (For Shareholders of the 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 38 . (For Shareholders of the 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 39 . (For Shareholders of the Arizona
Fund only)
3.D.1 . Approving an amendment to the fund's fundamental
investment restriction with respect to investments
in real estate. See page 41 . (For
Shareholders of the Massachusetts Fund,
Michigan Fund, Minnesota Fund, Ohio Fund and
Pennsylvania Fund only)
3.D.2. Approving an amendment to the fund's fundamental
investment
restriction with respect to investments in real estate.
See page 42. (For Shareholders of the Arizona Fund,
Florida
Fund and New Jersey Fund only)
3.E.1. Approving an amendment to the fund's fundamental
investment restriction with respect to concentration of
their assets. See page 44 . (For Shareholders of
the Florida Fund,
Massachusetts Fund, Michigan Fund, Minnesota Fund, New
Jersey Fund, Ohio Fund and Pennsylvania Fund only)
3.E.2. Approving an amendment to the fund's fundamental
investment restriction with respect to concentration of
its assets. See page 45 . (For Shareholders of
the Arizona Fund only)
3.F. Approving an amendment to the fund's fundamental
investment restriction with respect to senior securities.
See page 46 . (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 47 . (For Shareholders of
the 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 48 . (For Shareholders of
the Massachusetts Fund, Michigan Fund, Minnesota
Fund and Ohio Fund only)
3.G.3. Approving an amendment to the fund's fundamental
investment restriction with respect to investments in
commodities. See page 50 . (For Shareholders of
the 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 51 . (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 52 . (For Shareholders of
the 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 54 . (For Shareholders of
the 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 55 . (For Shareholders of
the Arizona Fund only)
4.C. Approving the elimination of the fund's fundamental
investment restriction with respect to short sales. See
page 57 . (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 58 . (For Shareholders of the
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 60 . (For Shareholders of the
Arizona Fund only)
4.D.3. Approving the elimination of the fund's fundamental
investment restriction with respect to pledging assets.
See page 62 . (For Shareholders of the New
Jersey Fund only)
4.E.1. Approving the elimination of the fund's fundamental
investment restriction with respect to investments in
restricted securities. See page 64 . (For
Shareholders of the Florida Fund, Massachusetts Fund,
Michigan fund, Minnesota Fund, New Jersey Fund, Ohio Fund
and Pennsylvania fund only)
4.E.2. Approving the elimination of the fund's fundamental
investment restriction with respect to investments in
restricted securities. See page 66 . (For
shareholders of the 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
67 . (For Shareholders of the 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
69 . (For Shareholders of the 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
70 . (For Shareholders of the 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 72 .
(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 72 . (For
Shareholders of the New Jersey Fund only)
4.I. Approving the elimination of the fund's fundamental
investment restriction with respect to the trading its
portfolio securities. See page 74. (For Shareholders of
the Pennsylvania 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
Hans H. Estin
John A. Hill
Ronald J. Jackson
Elizabeth T. Kennan
Lawrence J. Lasser<PAGE>
Robert E. Patterson
Donald S. Perkins
George Putnam, III
Eli Shapiro
A.J.C. Smith
W. Nicholas Thorndike
<PAGE>
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 18 , 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).
The table on page 9 sets forth the proposals that apply to
your fund. Proposals 3.A.-3.G. relate to amending certain
fundamental restrictions and proposals 4.A.-4.I. relate to
eliminating certain fundamental restrictions. Each Fund will
vote separately with respect to each applicable proposal.
Proposal
Arizona
Fund
Florida
Fund
Massachusetts
Fund
Michigan
Fund
Minnesota
Fund
New Jersey
Fund
Ohio
Fund
Pennsylvania
Fund
1 (Trustees)
x
x
x
x
x
x
x
x
2.A. (Auditors--Coopers & Lybrand L.L.P.)
x
x
x
x
2.B. (Auditors--Price Waterhouse LLP)
x
x
x
x
3.A.1. (Diversification)
x
x
x
x
3.A.2. (Diversification
x
3.B.1. (Voting securities)
x
x
x
x
x
3.B.2. (Voting securities)
x
x
x
3.C.1. (Making loans)
x
x
x
x
x
x
x
3.C.2. (Making loans)
x
3.D.1. (Real estate)
x
x
x
x
x
3.D.2. (Real estate)
x
x
x
3.E.1. (Concentration)
x
x
x
x
x
x
x
3.E.2. (Concentration)
x
3.F. (Senior securities)
x
x
x
x
x
x
x
x
3.G.1. (Commodities)
x
x
x
3.G.2. (Commodities)
x
x
x
x
3.G.3. (Commodities)
x
4.A. (Security ownership by management)
x
x
x
x
x
x
x
x
4.B.1. (Margin transactions)
x
x
x
4.B.2. (Margin transactions)
x
x
x
x
4.B.3. (Margin transactions)
x
4.C. (Short sales)
x
x
x
x
x
x
x
x
4.D.1. (Pledging)
x
x
x
x
x
x
4.D.2. (Pledging)
x
4.D.3. (Pledging)
x
4.E.1. (Restricted securities)
x
x
x
x
x
x
x
4.E.2. (Restricted securities)
x
4.F.1. (Oil, gas and mineral interests)
x
x
x
x
x
4.F.2. (Oil, gas and mineral interests)
x
4.F.3. (Oil, gas and mineral interests)
x
4.G. (Investing for control)
x
x
x
x
x
x
x
x
4.H. (Investing in investment companies)
x
4.I. (Trading portfolio securities)
x
<PAGE>
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 (For shareholders of each fund
voting separately ;
2.A. For selecting Coopers & Lybrand L.L.P. as independent auditors of your
fund; (For Shareholders of the Arizona Fund, Michigan Fund, New
Jersey Fund and Ohio Fund only) ; and
2.B. For selecting Price Waterhouse LLP as independent auditors of your fund
(For Shareholders of the Florida Fund, Massachusetts Fund,
Minnesota Fund and Pennsylvania Fund only) .
The Trustees also reccomend that you vote (to the extent applicable to your
fund):
3.A. For amending the fund's fundamental investment restriction with respect
to diversification;
3.B . For amending the fund's fundamental investment restriction with
respect to investments in the voting securities of a single
issuer;
3.C . For amending the fund's fundamental investment restriction with
respect to making loans;
3.D. For amending the fund's fundamental investment restriction with respect
to investments in real estate;
3.E . For amending the fund's fundamental investment restriction with
respect to concentration of its assets;
3.F. For amending the fund's fundamental investment restriction with respect
to senior securities;
3.G . For amending the fund's fundamental investment restriction with
respect to investments in commodities;
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;
4.B . For eliminating the fund's fundamental investment restriction
with respect to margin transactions;
4.C. For eliminating the fund's fundamental investment restriction with
respect to short sales;
4.D . For eliminating the fund's fundamental investment restriction
with respect to pledging assets;
4.E . For eliminating the fund's fundamental investment restriction
with respect to investments in restricted securities;
4.F . For eliminating the fund's fundamental investment restriction
with respect to investments in certain oil, gas and mineral
interests;
4.G. For eliminating the fund's fundamental investment restriction with
respect to investing to gain control of a company's management;
4.H. For eliminating the fund's fundamental investment restriction with
respect to investments in other investment companies ; and
4.I. For eliminating the fund's fundamental investment
restriction with respect to trading its portfolio
securities.
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 18 , 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.
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.
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.
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 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.
Dr. Pounds currently also serves as a Director of IDEXX Laboratories, Inc.,
EG&G, Inc., Perseptive 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.
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
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
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 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 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 each of the
funds and in the Putnam funds as a group.<PAGE>
Share Ownership by Trustees as of June 28, 1996*
Trustees
Year
first
elected
as
Trustee
of
Putnam
funds
Arizona
Fund
Florida
Fund
Massachusetts
Fund
Michigan
Fund
Minnesota
Fund
New
Jersey
Fund
Ohio
Fund
Pennsylvania
Fund
Number of
shares
owned of
all Putnam
funds**
Jameson A. Baxter
1994
110
110
111
110
110
114
110
111
24,102
Hans H. Estin
1972
132
140
255
260
248
141
258
139
26,270
John A. Hill
1985
132
137
388
387
234
141
243
139
123,624
Ronald J. Jackson
1996
170
169
2,756
170
171
172
171
165
12,209
Elizabeth T.
Kennan
1992
110
248
210
110
110
126
110
121
27,475
Lawrence J.
Lasser
1992
107
121
100
261
258
129
262
121
451,608
Robert E.
Patterson
1984
114
100
167
114
114
103
114
101
60,322
Donald S. Perkins
1982
326
328
422
400
377
352
407
352
160,110
William F. Pounds
1971
159
165
7,200
375
364
166
378
180
348,913
George Putnam
1957
1,356
1,372
36,518
(1)
2,027
1,969
887
2,051
891
1,516,577
George Putnam,
III
1984
138
140
14,307
(2)
644
616
141
642
484
287,830
Eli Shapiro
1995***
- --
- --
39,072
- --
- --
- --
- --
- --
80,677
A.J.C. Smith
1986
139
141
369
368
357
151
367
156
35,339
W. Nicholas
Thorndike
1992
110
121
58,398
130
129
129
131
121
79,113
* 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 thses shares .
(2) Mr. Putnam, III has shared voting power and shared investment power
with respect to
13,670 of these shares , in which he has no present economic
interest.
As of June 28, 1996, the Trustees and officers of the funds collectively
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
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:
[CAPTION]
<TABLE>
<C> <C> <C> <C> <C> <C> <C> <C> <C>
Total
compenstion
New from all
Arizona Florida Massachusetts Michigan MinnesotaJersey Ohio Pennsylvania Putnam
Fund* Fund* Fund* Fund* Fund* Fund* Fund* Fund* funds**
Jameson A. Baxter
$773
$860
$867
$779
$761
$873
$825
$827
$ 150,854
Hans H. Estin
770
857
863
776
758
869
821
824
150,854
John A. Hill
765
850
856
770
753
862
816
818
149,854
Elizabeth T.
Kennan
770
857
863
776
758
869
821
824
148,854
Lawrence J. Lasser
766
852
858
772
754
863
817
819
150,854
Robert E.
Patterson
792
885
893
798
780
898
848
851
152,854
Donald S. Perkins
767
853
859
773
755
865
818
820
150,854
William F. Pounds
781 ***
880 *
**
889 ***
788 ***<
/R>
767
***</R
>
892
***
839 *
**
843 ***</R
>
149,854
George Putnam
770
857
863
776
758
869
821
824
150,854
George Putnam, III
770
857
863
776
758
869
821
824
150,854
Eli Shapiro***
792
886
893
799
780
899
848
852
95,372
A.J.C. Smith
765
850
856
771
753
862
816
818
149,854
W. Nicholas
Thorndike
792
885
893
799
780
899
848
851
152,854
+ Ronald J. Jackson became a Trustee of the funds effective May 3, 1996 and
received no
compensation from these
funds 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.
</TABLE>
<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 Funds," on page 79 .
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 THE 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 your 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.
2.B. SELECTION OF INDEPENDENT AUDITORS
(FOR THE 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 your 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 your fund is
managed given its current investment objective and
policies.
Several of these changes expand your fund's opportunities
to invest in securities that generate taxable income. In any
case, your 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 the
fund affected thereby would have the ability to modify or
eliminate these
restrictions at a later date
without shareholder
approval. The U.S. Congress recently approved a bill that
would end all state-imposed investment limitations on
investment companies like the fund. I is expected that the
bill will be enacted into law in early October 1996 and will go
into effect immediately thereafter. Since many of the fund's
non-fundamental restrictions are the result of state
securities law requirements which would no longer apply to the
fund after the law goes into effect, the law would most
likely lead to the removal of some or all of these non-
fundamental restrictions.
The following proposals only apply to your fund to the extent
specified; please disregard any proposals that do not
specifically state that they apply to your fund.
Shareholders of each fund vote separately on each relevant
proposal . Voting on any proposal by one fund will not affect
voting on that proposal by any other fund.
The adoption of any of these proposals is not contingent on
the adoption of any other proposal.
3.A.1 . AMENDING THE FUND'S FUNDAMENTAL INVESTMENT
RESTRICTION WITH RESPECT TO DIVERSIFICATION
(FOR THE MASSACHUSETTS FUND, MICHIGAN FUND, MINNESOTA
FUND AND OHIO FUND ONLY)
The Trustees are recommending that the 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 the
fund the maximum investment flexibility permitted by the
Investment Company Act of 1940, as amended ("1940 Act"). Under
the 1940 Act, the 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
the fund's total assets is not subject to this
restriction.
The 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
guaranteed as to interest or
principal by the U.S.
government or its agencies or instrumentalities."
If the proposed change is approved, the 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, the fund would continue to be a
diversified investment company for purposes of the 1940 Act.
Putnam Management believes that this enhanced flexibility could
assist the fund in achieving its investment objective.
However, during times when Putnam Management invests a higher
percentage of the 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 a 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 DIVERSIFICATION
(FOR THE PENNSYLVANIA FUND ONLY)
The Trustees are recommending that the 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.
The fund's current restriction states that the fund may not:
"With respect to 75% of its total assets, invest in
securities of any issuer if, immediately after such investment,
more than 5% of the total assets of the Pennsylvania 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 or its agencies or instrumentalities."
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 guaranteed as to interest or principal by the U.S.
government or its agencies or instrumentalities."
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.B.1. AMENDING THE FUND'S FUNDAMENTAL INVESTMENT RESTRICTION
WITH RESPECT TO INVESTMENTS IN THE VOTING SECURITIES OF
A SINGLE ISSUER
(FOR THE MASSACHUSETTS FUND, MICHIGAN FUND, MINNESOTA
FUND, OHIO FUND AND PENNSYLVANIA FUND ONLY)
The Trustees are recommending that the 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 the fund the maximum flexibility permitted under the
1940 Act. The 1940 Act prohibits a diversified fund, such as
the fund , 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. The 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 ...
With respect to 75% of its total assets, acquire more
than 10% of the outstanding voting securities of any
issuer."
The amendment enables the fund to purchase more than 10%
of the voting securities of an issuer with respect to 25% of
the fund's total assets. Since the fund invests
primarily in fixed-income securities, which are not typically
voting securities, this proposal will have little practical
effect on the fund. Nevertheless, Putnam Management
believes it would be in the best interest of the fund to
conform the policy to provide it with maximum flexibility should
circumstances change.
To
the extent the 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 the 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 THE ARIZONA FUND, FLORIDA FUND AND NEW JERSEY
FUND ONLY)
The Trustees are recommending that the 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 the fund the
maximum flexibility permitted under the Code. Under the Code, a
nondiversified fund , such as the fund , 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. The 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."
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 the fund to purchase more than 10%
of the voting securities of an issuer with respect to 50% of the
fund's total assets. Since the fund invests primarily in
fixed-income securities, which are not typically voting
securities, this proposal will have little practical effect on
the fund. Nevertheless, Putnam Management believes it
would be in the best interest of the fund to conform the
policy to provide the fund with maximum flexibility should
circumstances change.
To
the extent the 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 the 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 THE FLORIDA FUND, MASSACHUSETTS FUND, MICHIGAN
FUND, MINNESOTA FUND, NEW JERSEY FUND, OHIO FUND AND
PENNSYLVANIA FUND ONLY)
The Trustees are recommending that the 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 the fund's ability to enter into
repurchase agreements and to permit the fund to enter into
securities loans. The current restriction states that the
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).
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 repurchase agreements
or securities loans to any significant extent 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 by a 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 THE ARIZONA FUND ONLY)
The Trustees are recommending that the 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
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 repurchase agreements or
securities loans to any significant extent 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 THE MASSACHUSETTS FUND, MICHIGAN FUND, MINNESOTA
FUND, OHIO FUND AND PENNSYLVANIA FUND ONLY)
The Trustees are recommending that the 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 and to grant the fund the
maximum flexibility in light of current regulatory requirements.
Although the fund is required to have a fundamental policy
with respect to investments in real estate, its current
restriction is more restrictive than current state securities law
requirements. The current restriction 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 the fund to invest in a
wide range of real estate-related investments, many in which
the fund may already invest under its 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 the fund during times where an issuer of debt
securities is unable to meet its obligations.
Since the fund invests primarily in fixed-income
securities, the proposal will have little practical effect
except to the extent the fund's investments are
secured by the real estate holdings of an issuer. Nevertheless,
Putnam Management believes it would be in the best interest of
the fund to conform the policy to provide it 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, the 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 a 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.D.2. AMENDING THE FUND'S FUNDAMENTAL INVESTMENT RESTRICTION
WITH RESPECT TO INVESTMENTS IN REAL ESTATE
(FOR THE ARIZONA FUND, FLORIDA FUND AND NEW JERSEY
FUND ONLY)
The Trustees are recommending that the 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 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 the fund's
restriction and would have no effect on the fund's
investments.
Required vote. Approval of this proposal by a 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 THE FLORIDA FUND, MASSACHUSETTS FUND, MICHIGAN
FUND, MINNESOTA FUND, NEW JERSEY FUND, OHIO FUND AND
PENNSYLVANIA FUND ONLY)
The Trustees are recommending that the 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 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 the fund's
restriction and would have no effect on the fund's
investments.
Required vote. Approval of this proposal by a 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 THE ARIZONA FUND ONLY)
The Trustees are recommending that the 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
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 EACH FUND)
The Trustees are recommending that the fund's 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 the 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 the 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 the 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 a 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.1. AMENDING THE FUND'S FUNDAMENTAL INVESTMENT RESTRICTION
WITH RESPECT TO INVESTMENTS IN COMMODITIES
(FOR THE FLORIDA FUND, NEW JERSEY FUND AND
PENNSYLVANIA FUND ONLY)
The Trustees are recommending that the 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 a fund may write and purchase financial futures
contracts and related options."
The proposed amended fundamental investment 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 each
fund's policy. The addition of financial transactions not
involving 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 does not currently intend to engage in such
investments.
Required vote. Approval of this proposal by a 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
(FOR THE MASSACHUSETTS FUND, MICHIGAN FUND, MINNESOTA
FUND AND OHIO FUND ONLY)
The Trustees are recommending that the 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 the 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 investment 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 each
fund's policy. The revised restriction also clarifies that the
fund can enter into financial futures contracts, which is
not made clear in the current restriction. The addition of
financial transactions not involving 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 does not currently intend to engage in such
investments.
Required vote. Approval of this proposal by a 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
(FOR THE ARIZONA FUND ONLY)
The Trustees are recommending that the 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 investment 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 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 EACH FUND)
The Trustees are recommending eliminating the fund's
fundamental investment restriction which prevents the 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 the 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 the fund's
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, the 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 a 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 THE FLORIDA FUND, NEW JERSEY FUND AND PENNSYLVANIA
FUND)
The Trustees are recommending that the 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
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."
The new restriction includes margin payments in connection
with all options transactions, not just options on futures, in
its exception.
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.
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
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 each fund to borrow money
only in limited circumstances.
Required vote. Approval of this proposal by a 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.2. ELIMINATING THE FUND'S FUNDAMENTAL INVESTMENT
RESTRICTION WITH RESPECT TO MARGIN TRANSACTIONS
(FOR THE MASSACHUSETTS FUND, MICHIGAN FUND, MINNESOTA FUND
AND OHIO FUND ONLY)
The Trustees are recommending that the 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 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."
The new restriction includes margin payments in connection with
all options transactions, not just options on futures, in its
exception.
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
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.
Required vote. Approval of this proposal by a 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 THE ARIZONA FUND ONLY)
The Trustees are recommending that the 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
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.
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 EACH FUND)
The Trustees are recommending that the fund's 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 the 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."
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 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,
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 the 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
fund . Nevertheless, Putnam Management believes it is in
the best interest of the fund to conform the policy and
make it non-fundamental to provide the fund with maximum
flexibility should circumstances change.
Required vote. Approval of this proposal by a 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 THE FLORIDA FUND, MASSACHUSETTS FUND, MICHIGAN
FUND, MINNESOTA FUND, OHIO FUND AND PENNSYLVANIA FUND ONLY)
The Trustees are recommending that the of 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) 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. 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 a
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 by the 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.2. ELIMINATING THE FUND'S FUNDAMENTAL INVESTMENT
RESTRICTION WITH RESPECT TO PLEDGING ASSETS
(FOR THE ARIZONA FUND ONLY)
The Trustees are recommending that the 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.
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 THE NEW JERSEY FUND ONLY)
The Trustees are recommending that the 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 ...
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 THE FLORIDA FUND, MASSACHUSETTS FUND, MICHIGAN
FUND, MINNESOTA FUND, NEW JERSEY FUND, OHIO FUND AND
PENNSYLVANIA FUND ONLY)
The Trustees are recommending that the of the above-
referenced fund's fundamental investment restriction which limits
each 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:
"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
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 by the 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 THE ARIZONA FUND ONLY)
The Trustees are recommending that the 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:
"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 THE MASSACHUSETTS FUND, MICHIGAN FUND, MINNESOTA
FUND, OHIO FUND AND PENNSYLVANIA FUND ONLY)
The Trustees are recommending that the 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
the fund may not:
"Buy or sell oil, gas or other mineral leases, rights or
royalty contracts."
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
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 the 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, the 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, the 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 the fund
during times where an issuer of debt securities is unable to meet
its obligations.
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 proposal will have little practical effect on the fund
except to the extent the fund's investments are secured by oil,
gas and mineral interests.
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
materials and related products. In addition, in order to enforce
its rights in the event of a default of an issuer of these
securities, the 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 a 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 THE FLORIDA FUND ONLY)
The Trustees are recommending that the 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
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 THE NEW JERSEY FUND ONLY)
The Trustees are recommending that the 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
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 EACH FUND)
The Trustees are recommending that the fund's fundamental
investment restriction which states that the fund may not
"make investments for the purpose of gaining control of a
company's management" be eliminated. Eliminating the restriction
would make it clear that the fund can freely exercise its
rights as a shareholder of the various companies in which it may
invest, which activities could at times fall under the
technical definition of control under the securities laws .
These rights may include the right to actively oppose or support
the management of such companies and to communicate its views
with respect to various matters. Since the fund invests
primarily in fixed-income securities, this proposal will not
impact the majority of its investments. Nevertheless,
Putnam Management believes it would be in the best interest of
the fund to eliminate the restriction.
Required vote. Approval of this proposal by a 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 THE NEW JERSEY FUND ONLY)
The Trustees are recommending that the 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 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.
Such investment companies may involve duplication of some fees
and expenses, but may also provide attractive investment
opportunities. 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.
ELIMINATING THE FUND'S FUNDAMENTAL INVESTMENT RESTRICTION WITH
RESPECT TO THE TRADING OF ITS PORTFOLIO SECURITIES
(FOR THE PENNSYLVANIA FUND ONLY)
The Trustees are recommending that the fund's fundamental
investment restriction with respect to the trading of its
portfolio securities be eliminated. The current fundamental
investment restriction states that the fund may not:
"Trade the fund's securities for the purpose of seeking profits
except that the fund may vary its portfolio securities (i) to
eliminate unsafe investments and investments not consistent with
the preservation of the fund's capital or the tax status of the
fund's investments; (ii) to honor redemption orders and meet
anticipated redemption requirements and negate gains from
discount purchases; (iii) to reinvest the earnings from
securities in like securities; or (iv) to defray normal
administrative expenses. The fund may vary its portfolio
securities if (i) there has been an adverse change in security's
credit rating or in that of its issuer or in Putnam Management's
credit analysis of the security or its issuer; (ii) there has
been, in the opinion of Putnam Management, a deterioration or
anticipated deterioration in general economic or market
conditions affecting issuers of tax exempt securities, or a
change or anticipated change in interest rates; (iii) adverse
changes or anticipated changes in market conditions or economic
or other factors temporarily affecting the issuers of one or more
portfolio securities make necessary or desirable the sale of such
security or securities in anticipation of the fund's repurchase
of the same or comparable securities at a later date; or (iv)
Putnam Management engages in the alternative investment practices
described below. The fund may purchase or sell financial futures
contracts and related options on securities and securities
indices for hedging purposes."
The fund originally adopted this restriction to comply with
Pennsylvania securities laws requirements, but Pennsylvania
no longer requires the fund to adhere to this policy. Putnam
management believes that the current restriction is unnecessarily
restrictive, and could prevent the 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, the fund would have increased
flexibility to respond to market or interest rate changes and new
investment opportunities.
The fund will continue to be restricted by its other investment
policies concerning its portfolio holdings.
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 or the
share 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
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
each 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.
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 of
instructions for registered and nominee accounts, for a fee not
to exceed $2,500 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.
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 each fund are as
follows:
Year first elected to office
Name (age)
Office
Massachusetts
Michigan
Minnesota
Ohio and
Pennsylvania
Funds
Arizona
Funds
Florida
and
New Jersey
Funds
Charles E. Porter (58)
Executive
Vice President
1989
1991
1990
Patricia C. Flaherty (49)
Senior
Vice President
1993
1993
1993
John D. Hughes (61)
Senior
Vice President
& Treasurer
1987
1991
1990
Gordon H. Silver (49)
Vice President
1990
1991
1990
Gary N. Coburn (50)
Vice President
1988
1991
1995/1990
(FL)/(NJ)
Blake E. Anderson
(40)
Vice President
1994
1995
1994
Howard K. Manning
(43) *</R
>
Vice President
1993
1995
- --
Richard P. Wyke
(40) **</R
>
Vice President
1993
- --
1990/1994
(FL)/(NJ)
Leslie J. Burke
(33) ***</
R>
Vice President
1996
1991
1996
James E. Erickson
(61)
Vice President
1987
1991
1990
William N. Shiebler
(54) ****<
/R>
Vice President
1991
1991
1991
John R. Verani (57)
Vice President
1987
1991
1990
Paul M. O'Neill
(43)
Vice President
1992
1992
1992
Beverly Marcus
(52)
Clerk
1987
1991
1990
__________________________
* Portfolio Manager and Vice President of Arizona, Michigan and Minnesota
Fund
only .
** Portfolio Manager and Vice President of Florida, Ohio and
Pennsylvania Funds only .
*** Portfolio Manager and Vice President of New Jersey Fund.
**** President of Putnam Mutual Funds.
<PAGE>
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 August 30 , 1996
Fund Name
- -----------------
Net Assets
- ----------
Class A
Shares
- -------
Class B
Shares
- -------
Class M
Shares
- -------
Arizona Fund
$149,726,36
7
13,771,685
2,862,954
44,431</
R>
Florida Fund
303,121,770
27,280,353
6,025,675
122,316<
/R>
Massachusetts Fund
341,459,681
28,885,109
7,842,394
308,808<
/R>
Michigan Fund
172,848,629
15,584,445
3,504,198
68,011</
R>
Minnesota Fund
130,787,678
11,020,339
3,586,343
106,938<
/R>
New Jersey Fund
309,293,985
26,061,636
8,523,563
42,394</
R>
Ohio Fund
232,346,508
21,082,054
4,974,121
75,010</
R>
Pennsylvania Fund
258,099,743
20,174,494
7,756,787
53,976</
R>
5% beneficial ownership as of
September 10 , 1996
Arizona Fund
Persons beneficially owning more than 5%
of the fund's class A shares
Merrill Lynch, Pierce Fenner 766,224 shares
& Smith, Inc. or 5.50%
Mutual Fund Operations
Third Floor
4800 Deer Lake Drive East
Jacksonville, Florida
Persons beneficially owning more than 5%
of the fund's class B shares
Merrill Lynch, Pierce Fenner 171,113 shares
& Smith, Inc. or 6.00%
Persons beneficially owning more than 5%
of the fund's class M shares
G. Donald and Elizabeth A. Haarer 4,881 shares
354 Forest Highlands or 12.40 %
Flagstaff, Arizona 86001
Edward D. Jones & Co. 9,489 shares
FAO Essie Martin or 32.08%
P.O. Box 2500
Maryland Heights, Missouri 63043
Edward D. Jones & Co. 8,436 shares
FAO Susan M. Hamm or 28.52%
P.O. Box 2500
Maryland Heights, Missouri 63043
Donaldson, Lufkin Jenrette 11,044 shares
Securities Corporation, Inc. or 37.33%
P.O. Box 2052
Jersey City, New Jersey 07303
Florida Fund
Persons beneficially owning more than 5%
of the fund's class A shares
Merrill Lynch, Pierce Fenner 2,562,698 shares
& Smith, Inc. or 9.30%
Persons beneficially owning more than 5%
of the fund's class B shares
Merrill Lynch, Pierce Fenner 491,384 shares
& Smith, Inc. or 8.20%
Persons beneficially owning more than 5%
of the fund's class M shares
Randy M. Poffo Trust 27,909 shares
7650 Bayshore Drive or 22.70%
Apartment 1003B
St. Petersburg, Florida 33706
John R. McAllister 10,727 shares
12372 Cormorant Drive or 8.70%
Jacksonville, Florida 32223
Sylvia Maulitz 8,584 shares
101 Clyde Morris Boulevard or 6.90%
Apartment 313
Ormond Beach, Florida 32174
Edward D. Jones & Company 18,447 shares
P.O. Box 2500 or 15%
Maryland Heights, Missouri 63043
Raymond James & Associates, Inc. 27,809 shares
P.O. Box 12749 or 23%
St. Petersburg, Florida 33733
Paine Webber 6,255 shares
100 Harbor Blvd. or 5%
Weehauken, New Jersey 07087
Massachusetts Fund
Persons beneficially owning more than 5% None
of the fund's class A shares
Persons beneficially owning more than 5% None
of the fund's class B shares
Persons beneficially owning more than 5%
of the fund's class M shares
Nicholas J. Stasinos Trust 22,119 shares
22 Brewster Street or 7.10%
Plymouth, Massachusetts 02360
Lewis Legon 98,375 shares
3 Rockaway Avenue or 54%
Marblehead, Massachusetts 01945
Smith Barney Inc. 53,437 shares
388 Greenwich Street or 29.68
New York, New York 10013
Prudential Securities, Inc. 11,391 shares
FBO Ruth G. Beck or 6.33%
290 Kingstown Way
Apt. 298
Duxbury, Massachusetts 02332
Michigan Fund
Persons beneficially owning more than 5%
of the fund's class A shares None
Persons beneficially owning more than 5%
of the fund's class B shares None
Persons beneficially owning more than 5%
of the fund's class M shares
Pauline B. Pickford Trust 14,179 shares
64 Pleasant Street or 20.90%
Oxford, Michigan 49442
Frank R. Farkas 14,017 shares
1832 Ada Avenue or 20.70%
Muskegon, Michigan 49442
Emory J. & Lowell F. Anderson 8,004 shares
JTWROS or 11.80%
1481 East Jackson Road
Saint Louis, Michigan 48880
Edward Jones & Co. 4,007 shares
FAO James R. Dealing & or 16.34 %
Elizabeth E. Dealing
P.O. Box 2500
Maryland Heights, Missouri 63043
Persons beneficially owning more than 5% None
of the fund's class A shares
Persons beneficially owning more than 5% None
of the fund's class B shares
Persons beneficially owning more than 5%
of the fund's class M shares
Craig M. Larson & Gary & Tim 26,852 shares
C. Larson & Pam Nichelson & or 25.20%
Edna Larson JTWROS
200 Chanview Road
Chanhassen, Minnesota 55317
Kermit J. Swenson 14,826 shares
Gladys J. Swenson TTEES or 13.90%
Swenson Family Trust
7819 408th Street
Kenyon, Minnesota 55946
Gertrude L. Palublicki TOD 6,895 shares
Ann L.P. Gustin or 6.40%
576 East 2nd Street
Winona, Minnesota 55987
Edward D. Jones & Co. 19,464 shares
FAO Elizabeth A. Nelson or 74.92%
P.O. Box 2500
Maryland Heights, Missouri 63043
New Jersey Fund
Persons beneficially owning more than 5%
of the fund's class A shares
Merrill Lynch, Pierce Fenner 2,638,025 shares
& Smith, Inc. or 10.10%
Persons beneficially owning more than 5%
of the fund's class B shares
Merrill Lynch, Pierce Fenner 765,724 shares
& Smith, Inc. or 9.10%
Persons beneficially owning more than 5%
of the fund's class M shares
Thomas Chiego & Phyllis A. Chiego 12,866 shares
JTWROS or 27.80%
48 Huntley Road
Summit, New Jersey 07901
Jack Keshish 8,926 shares
2 Dimisa Drive or 19.30%
Holmdel, New Jersey 07733
David Cavagnaro & Nancy Cavagnaro 7,659 shares
JTWROS or 16.50%
148 Lakeview Avenue
South Plainfield, New Jersey 07080
Edward J. Gibeny & Ellen Gibeny 4,188 shares
JTWROS or 9.00%
25 Hickory Place
Apartment E24
Chatham, New Jersey 07928
Kathleen Sisolak & Stephen Sisolak 3,135 shares
JTWROS or 6.70%
P.O. Box 198
Lakeview Drive Road
Apartment 2
Basking Ridge, New Jersey 07920
Allen Samuels & Joan Samuels JTWROS 2,525 shares
563 Stonewall Drive or 5.40%
Smithville, New Jersey 08201
Christine Vallet & Andres Vallet 2,315 shares
JTWROS or 5.00%
40 Fieldcrest Way
Hazlet, New Jersey 07730
<PAGE>
Ohio Fund
Persons beneficially owning more than 5% None
of the fund's class A shares
Persons beneficially owning more than 5%
of the fund's class B shares
Merrill Lynch, Pierce Fenner 653,757 shares
& Smith, Inc. or 13.20%
Persons beneficially owning more than 5%
of the fund's class M shares
Hess and Gault Lumber Sole 5,856 shares
Proprietorship or 7.80%
Attn: Danny L. Ungerer
707 County Road
P.O. Box 1302
Ashland, Ohio 44805
Rick D. Gerdeman & Linda A. 5,116 shares
Gerdeman JTWROS or 6.80%
816 Atalan Trail
Lima, Ohio 44805
Donaldson, Lufkin Jenrette 23,441 shares
Securities Corp. or 31%
P.O. Box 2052
Jersey City, New Jersey 07303
Pennsylvania Fund
Persons beneficially owning more than 5%
of the fund's class A shares
BHC Securities Inc. 1,474,769 shares
Trade House Account or 27.04%
100 N. 20th Street
Philadelphia, Pennsylvania 19103
Persons beneficially owning more than 5%
of the fund's class B shares
Merrill Lynch, Pierce Fenner 578,252 shares
& Smith, Inc. or 7.60%
Persons beneficially owning more than 5%
of the fund's class M shares
Nancy Wyndham 5,154 shares
Hillendale Road or 12.10%
P.O. Box 831
Mendenhall, Pennsylvania 19357
Sharon L. Haller 4,124 shares
610 Cambridge Court or 9.60%
Palmyra, Pennsylvania 17078
Gerald M. Stuczynski Rev Trust 3,016 shares
Mary Ann Stuczynski or 7.00%
3008 Florida Avenue
Erie, Pennsylvania 16504
Patricia A. Fox 2,186 shares
119 Haverford Drive or 5.10%
Laflin, Pennsylvania 18702
Edward D. Jones, & Co. 3,607 shares
FAO Sara M. Breski or 23.20%
P.O. Box 2500
Maryland Heights, Missouri 63043
<PAGE>
PUTNAMINVESTMENTS
The Putnam Funds
One Post Office Square
Boston, Massachusetts 02109
Toll-free 1-800-225-1581<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
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 Trustees as set forth in Proposal 1 and FOR
each of
the other Proposals listed below . 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:
2.A.
Ratify the selection
of Coopers & Lybrand
L.L.P. as the
independent auditors
of your fund.
FOR
/ /
AGAINST
/ /
ABSTAIN
/ /
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.
/ /
/ /
/ /
D.2.
Investments in real
estate.
/ /
/ /</R
>
/ /
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</
R>.
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 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 Trustees as set forth in Proposal 1 and FOR
each of
the other Proposals listed below . 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:
2.B.
Ratify the selection
of Price Waterhouse
LLP as the
independent auditors
of your fund.
FOR
/ /
AGAINST
/ /
ABSTAIN
/ /
3.
Amend the fund's
fundamental
investment
restriction with
respect to:
A
.2.
Diversification.
/ /
/ /
/
/
B.1.
Investments in the
voting securities of
a single issuer.
/ /
/ /
/ /
C.1.
Making loans.
/ /
/ /
/ /
D
.1</
R>.
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.
/ /
/ /
/ /
I.
Trading its
portfolio
securities.
/ /
/ /
/ /
<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 Trustees as set forth in Proposal 1 and FOR
each of
the other Proposals
as listed below . 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:
2.B.
Ratify the selection
of Price Waterhouse
LLP as the
independent auditors
of your fund.
FOR
/ /
AGAINST
/ /
ABSTAIN
/ /
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.
/ /
/ /
/ /
D.2.
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.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 Trustees as set forth in Proposal 1 and FOR
each of
the other Proposals listed below . 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:
2.B.
Ratify the selection
of Price Waterhouse
LLP as the
independent auditors
of your fund.
FOR
/ /
AGAINST
/ /
ABSTAIN
/ /
3.
Amend the fund's
fundamental
investment
restriction with
respect to:
A
.1</
R>.
Diversification.
/ /
/ /
/ /
B.1.
Investments in the
voting securities of
a single issuer.
/ /
/ /
/ /
C.1.
Making loans.
/ /
/ /
/ /
D
.1</
R>.
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 Trustees as set forth in Proposal 1 and FOR
each of
the other Proposals listed below . 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:
2.A.
Ratify the selection
of Coopers & Lybrand
L.L.P. as the
independent auditors
of your fund.
FOR
/ /
AGAINST
/ /
ABSTAIN
/ /
3.
Amend the fund's
fundamental
investment
restriction with
respect to:
A
.1</
R>.
Diversification.
/ /
/ /
/ /
B.1.
Investments in the
voting securities of
a single issuer.
/ /
/ /
/ /
C.1.
Making loans.
/ /
/ /
/ /
D
.1</
R>.
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 Trustees as set forth in Proposal 1 and FOR
each of
the other Proposals listed below . 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:
2.B.
Ratify the selection
of Price Waterhouse
LLP as the
independent auditors
of your fund.
FOR
/ /
AGAINST
/ /
ABSTAIN
/ /
3.
Amend the fund's
fundamental
investment
restriction with
respect to:
A
.1</
R>.
Diversification.
/ /
/ /
/ /
B.1.
Investments in the
voting securities of
a single issuer.
/ /
/ /
/ /
C.1.
Making loans.
/ /
/ /
/ /
D
.1</
R>.
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
or 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 Trustees as set forth in Proposal 1 and FOR
each of
the other Proposals.listed below . 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:
2.A.
Ratify the selection
of Coopers & Lybrand
L.L.P. as the
independent auditors
of your fund.
FOR
/ /
AGAINST
/ /
ABSTAIN
/ /
3.
Amend the fund's
fundamental
investment
restriction with
respect to:
A
.1</
R>.
Diversification.
/ /
/ /
/ /
B.1.
Investments in the
voting securities of
a single issuer.
/ /
/ /
/ /
C.1.
Making loans.
/ /
/ /
/ /
D
.1</
R>.
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 Trustees as set forth in Proposal 1 and FOR
each of
the other Proposals listed below . 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:
2.A.
Ratify the selection
of Coopers & Lybrand
L.L.P. as the
independent auditors
of your fund.
FOR
/ /
AGAINST
/ /
ABSTAIN
/ /
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.
/ /
/ /
/ /
D.2.
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
.3</
R>.
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>
