Prospectus Supplement dated December 1, 1995 to:
PUTNAM AMERICAN GOVERNMENT INCOME FUND
Prospectus dated February 1, 1995
PUTNAM ASIA PACIFIC GROWTH FUND
Prospectus dated February 1, 1995
PUTNAM ASSET ALLOCATION FUNDS
Prospectus dated February 1, 1995
Prospectus dated February 1, 1995,
as revised September 1, 1995
PUTNAM BALANCED RETIREMENT FUND
Prospectus dated March 1, 1995, as revised June 1, 1995
PUTNAM CONVERTIBLE INCOME-GROWTH TRUST
Prospectus dated March 1, 1995
PUTNAM DIVERSIFIED EQUITY TRUST
Prospectus dated July 1, 1995
PUTNAM DIVERSIFIED INCOME TRUST
Prospectus dated December 1, 1994
PUTNAM EQUITY INCOME FUND
Prospectus dated April 1, 1995
PUTNAM FEDERAL INCOME TRUST
Prospectus dated March 1, 1995
THE PUTNAM FUND FOR GROWTH AND INCOME
Prospectus dated March 1, 1995
PUTNAM GLOBAL GOVERNMENTAL INCOME TRUST
Prospectus dated March 1, 1995
PUTNAM GLOBAL GROWTH FUND
Prospectus dated March 1, 1995
PUTNAM GROWTH AND INCOME FUND II
Prospectus dated July 14, 1995
PUTNAM HEALTH SCIENCES TRUST
Prospectus dated January 1, 1995, as revised July 1, 1995
PUTNAM HIGH YIELD TRUST
Prospectus dated January 1, 1995, as revised July 1, 1995
PUTNAM HIGH YIELD ADVANTAGE FUND
Prospectus dated April 1, 1995
PUTNAM INCOME FUND
Prospectus dated March 1, 1995
PUTNAM INTERMEDIATE U.S. GOVERNMENT FUND
Prospectus dated April 1, 1995, as revised May 1, 1995
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PUTNAM INTERNATIONAL NEW OPPORTUNITIES FUND
Prospectus dated July 14, 1995
PUTNAM MUNICIPAL INCOME FUND
Prospectus dated August 1, 1995
PUTNAM NATURAL RESOURCES FUND
Prospectus dated January 1, 1995, as revised July 1, 1995
PUTNAM U.S. GOVERNMENT INCOME TRUST
Prospectus dated February 1, 1995
PUTNAM UTILITIES GROWTH AND INCOME FUND
Prospectus dated March 1, 1995
Effective as of the date of this Supplement, certain
employee benefit plans may purchase shares of the Funds
without a sales charge. Also, contingent deferred sales
charges may be waived under certain circumstances.
Accordingly, the Prospectuses for the Funds have been
revised as follows:
(1) The second footnote following "Examples" under the
heading "Expenses summary" is replaced with the following:
** A deferred sales charge of up to 1.00% is
assessed on certain redemptions of Class A shares
that were purchased without an initial sales
charge. See "How to buy shares -- Class A
shares."
(2) The section "Class A shares" under the heading
"Alternative Sales Arrangements" is replaced with the
following:
Class A shares. An investor who purchases Class
A shares pays a sales charge at the time of
purchase. As a result, Class A shares are not
subject to any charges when they are redeemed,
except for certain sales at net asset value that
are subject to a contingent deferred sales charge
("CDSC"). Certain purchases of Class A shares
qualify for reduced sales charges. Class A
shares bear a lower 12b-1 fee than Class B and
Class M shares. See "How to buy shares -- Class
A shares" and "Distribution Plans."
(3) The second and third paragraphs under the heading "How
to buy shares -- Class A shares" are replaced with the
following:
There is no initial sales charge on purchases of
Class A shares of $1 million or more. However, a
CDSC of 1.00% or 0.50%, respectively, will be
imposed if you redeem these shares within the
first or second year after purchase, based on the
lower of the shares' cost and current net asset
value. Any shares acquired by reinvestment of
distributions will be redeemed without a CDSC.
In addition, there are no sales charges on shares
purchased by participant-directed employee
benefit plans with at least 200 eligible
employees.
Shares purchased by certain investors investing
$1 million or more who have made arrangements
with Putnam Mutual Funds and whose dealer of
record waived the commission as described below
are not subject to the CDSC. In determining
whether a CDSC is payable, the Fund will first
redeem shares not subject to any charge. Putnam
Mutual Funds receives the entire amount of any
CDSC you pay. See the Statement of Additional
Information for more information about the CDSC.
Except as stated below, Putnam Mutual Funds pays
investment dealers of record commissions on sales
of Class A shares of $1 million or more based on
an investor's cumulative purchases during the
one-year period beginning with the date of the
initial purchase at net asset value. Each
subsequent one-year measuring period for these
purposes will begin with the first net asset
value purchase following the end of the prior
period. Such commissions are paid at the rate of
1.00% of the amount under $3 million, 0.50% of
the next $47 million and 0.25% thereafter.
On sales at net asset value to a participant-
directed qualified retirement plan initially
investing less than $20 million in Putnam funds
and other investments managed by Putnam
Management or its affiliates (including a plan
with at least 200 eligible employees), Putnam
Mutual Funds pays commissions during each one-
year measuring period, determined as described
above, at the rate of 1.00% of the first $2
million, 0.80% of the next $1 million and 0.50%
thereafter. On sales at net asset value to all
other participant-directed qualified retirement
plans, Putnam Mutual Funds pays commissions on
the initial investment and on subsequent net
quarterly sales at the rate of 0.15%.
(4) The first paragraph under the section "How to buy
shares -- General" is replaced with the following:
You may be eligible to buy Class A shares and
Class M shares at reduced sales charges.
Consult your investment dealer or Putnam Mutual
Funds for details about Putnam's combined
purchase privilege, cumulative quantity discount,
statement of intention, group sales plan,
employee benefit plans, and other plans.
Descriptions are also included in the order form
and in the Statement of Additional Information.
A participant-directed employee benefit plan
participating in a "multi-fund" program approved
by Putnam Mutual Funds may include amounts
invested in other mutual funds participating in
such program for purposes of determining whether
the plan may purchase Class A shares at net asset
value. These investments will also be included
for purposes of the discount privileges and
programs described above.
Sales charges will not apply to Class M shares
purchased with redemption proceeds received
within the prior 90 days from non-Putnam mutual
funds on which the investor paid a front-end or a
contingent deferred sales charge or to Class M
shares purchased by participant-directed
qualified retirement plans with at least 50
eligible employees. The Fund may also sell Class
M shares at net asset value to members of
qualified groups.
(5) Effective December 1, 1995, any applicable contingent
deferred sales charge will be waived on redemptions of
shares following the death or post-purchase disability of a
settlor of a living trust account. Up to 12% of the value
of shares subject to a systematic withdrawal plan may also
be redeemed each year without a CDSC.
(6) The second sentence in the second paragraph under the
heading "Distribution Plans -- Class A Distribution Plan" is
replaced with the following:
This calculation excludes until one year after
purchase shares purchased at net asset value,
known as "NAV shares," by shareholders investing
$1 million or more. Also excluded until one year
after purchase are NAV shares purchased by
participant-directed qualified retirement plans
with at least 200 eligible employees. NAV shares
are not subject to the one-year exclusion
provision in cases where certain shareholders who
invested $1 million or more have made
arrangements with Putnam Mutual Funds and the
dealer of record waived the sales commission.
