Prospectus Supplement dated July 21, 1997 to:
PUTNAM AMERICAN GOVERNMENT INCOME FUND
Prospectus dated January 30, 1997
PUTNAM ASIA PACIFIC GROWTH FUND
Prospectus dated January 30, 1997
PUTNAM ASSET ALLOCATION FUNDS
Prospectus dated January 30, 1997
PUTNAM BALANCED RETIREMENT FUND
Prospectus dated February 28, 1997
PUTNAM CAPITAL APPRECIATION FUND
Prospectus dated September 30, 1996
PUTNAM CONVERTIBLE INCOME-GROWTH TRUST
Prospectus dated February 28, 1997
PUTNAM DIVERSIFIED INCOME TRUST
Prospectus dated January 30, 1997
PUTNAM DIVERSIFIED INCOME TRUST II
Prospectus dated May 17, 1996
PUTNAM EMERGING MARKETS FUND
Prospectus dated October 30, 1996
PUTNAM EQUITY INCOME FUND
Prospectus dated March 30, 1997
PUTNAM EUROPE GROWTH FUND
Prospectus dated October 30, 1996
PUTNAM FEDERAL INCOME TRUST
Prospectus dated February 28, 1997
THE PUTNAM FUND FOR GROWTH AND INCOME
Prospectus dated February 28, 1997
PUTNAM GLOBAL GOVERNMENTAL INCOME TRUST
Prospectus dated February 28, 1997
PUTNAM GLOBAL GROWTH FUND
Prospectus dated February 28, 1997
<PAGE>
PUTNAM GLOBAL NATURAL RESOURCES FUND
Prospectus dated December 30, 1996
PUTNAM GROWTH AND INCOME FUND II
Prospectus dated March 30, 1997
PUTNAM HEALTH SCIENCES TRUST
Prospectus dated December 30, 1996
PUTNAM HIGH YIELD ADVANTAGE FUND
Prospectus dated March 30, 1997
PUTNAM HIGH YIELD TOTAL RETURN FUND
Prospectus dated January 1, 1997
PUTNAM HIGH YIELD TRUST
Prospectus dated December 30, 1996
PUTNAM INCOME FUND
Prospectus dated February 28, 1997
PUTNAM INTERMEDIATE U.S. GOVERNMENT INCOME FUND
Prospectus dated March 30, 1997
PUTNAM INTERNATIONAL GROWTH FUND
Prospectus dated October 30, 1996
PUTNAM INTERNATIONAL GROWTH AND INCOME FUND
Prospectus dated April 1, 1997
PUTNAM INTERNATIONAL NEW OPPORTUNITIES FUND
Prospectus dated December 31, 1996
PUTNAM INTERNATIONAL VOYAGER FUND
Prospectus dated October 30, 1996
PUTNAM INVESTORS FUND
Prospectus dated November 30, 1996
PUTNAM NEW OPPORTUNITIES FUND
Prospectus dated October 30, 1996
PUTNAM NEW VALUE FUND
Prospectus dated December 31, 1996
PUTNAM OTC & EMERGING GROWTH FUND
Prospectus dated December 16, 1996
PUTNAM U.S. GOVERNMENT INCOME TRUST
Prospectus dated January 30, 1997
PUTNAM UTILITIES GROWTH AND INCOME FUND
Prospectus dated February 28, 1997
PUTNAM VISTA FUND
Prospectus dated November 30, 1996
PUTNAM VOYAGER FUND
Prospectus dated November 30, 1996
Effective April 15, 1997, the prospectus is modified as follows:
1. "How to buy shares--Class A shares" is revised by replacing
the three paragraphs following the sales charge table with the
following:
No initial sales charge applies to purchases of class A
shares of $1 million or more, or to purchases by employer-
sponsored retirement plans that have at least 200 eligible
employees. However, a CDSC of 1.00% or 0.50%, respectively,
is imposed within the first or second year after purchase on
redemptions of these shares, unless the dealer of record
waived its commission with Putnam Mutual Funds' approval, or
unless the purchaser is a class A qualified benefit plan (a
retirement plan for which Putnam Fiduciary Trust Company or
its affiliates provide recordkeeping or other services in
connection with purchases of class A shares).
Class A qualified benefit plans may also purchase class A
shares with no initial sales charge. However, except as
stated below, a CDSC of 0.75% of the total amount redeemed
(1.00% in the case of plans for which Putnam Mutual Funds
and its affiliates do not act as trustee or recordkeeper)
is imposed on redemptions of these shares if, within two
years of a plan's initial purchase of class A shares, it
redeems 90% or more of its cumulative purchases.
Thereafter, such a plan is no longer liable for any CDSC.
The two-year CDSC applicable to class A qualified benefit
plans for which Putnam Mutual Funds or its affiliates serve
as trustee or recordkeeper ("full service plans") is 0.50%
of the total amount redeemed for full service plans that
initially invest at least $5 million but less than $10
million in Putnam funds and other investments managed by
Putnam Management or its affiliates ("Putnam Assets"), and
is 0.25% of the total amount redeemed for full service plans
that initially invest at least $10 million but less than $20
million in Putnam Assets. Class A qualified benefit plans
that initially invest at least $20 million in Putnam Assets,
or whose dealer of record has, with Putnam Mutual Funds'
approval, waived its commission or agreed to refund its
commission to Putnam Mutual Funds in the event a CDSC would
otherwise be applicable, are not subject to any CDSC.
In determining whether a CDSC is payable, the fund will
first redeem shares not subject to any charge. Any CDSC
will be calculated based on the lower of the shares' cost
and current net asset value and any shares acquired by
reinvestment of distributions will be redeemed without a
CDSC. Putnam Mutual Funds receives the entire amount of any
CDSC you pay. See the SAI for more information about the
CDSC.
2. The descriptions of Putnam Mutual Funds initial commissions
and ongoing payments to dealers for class A shares sold at net
asset value to qualified benefit plans are replaced with the
following:
Putnam Mutual Funds pays the dealer of record for sales of
class A shares at net asset value to qualified benefit plans
commissions of up to 1% and ongoing service fees of up to
0.25% annually on eligible average assets. See the SAI for
information about the rates at which these sales commissions
and service fees are paid.
3. Each remaining reference in the prospectus to a participant-
directed qualified retirement plan is changed to refer to a
qualified benefit plan.
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