STATEMENT OF ADDITIONAL INFORMATION SUPPLEMENT DATED 57003 11/99
NOVEMBER 15, 1999 TO STATEMENTS OF ADDITIONAL INFORMATION
OF: PUTNAM STRATEGIC INCOME FUND, PUTNAM DIVERSIFIED INCOME
FUND, PUTNAM GLOBAL GOVERNMENTAL INCOME TRUST
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The first paragraph under the heading "Miscellaneous
Investments, Investment Practices and Risks -- Swap
Agreements" in Part II of the Statement of Additional
Information is hereby deleted and the following inserted in
its place:
The fund may enter into swap agreements and other types of
over-the-counter transactions with broker-dealers or other
financial institutions. Depending on their structures, swap
agreements may increase or decrease a fund's exposure to
long-or short-term interest rates (in the United States or
abroad), foreign currency values, mortgage securities,
corporate borrowing rates, or other factors such as security
prices or inflation rates. The value of a fund's swap
positions would increase or decrease depending on the
changes in value of the underlying rates, currency values,
or other indices or measures. A fund's ability to engage in
certain swap transactions may be limited by tax
considerations.
