48922 12/98
STATEMENT OF ADDITIONAL INFORMATION SUPPLEMENT
dated December 18, 1998 to Statements
of Additional Information of various
Putnam funds
1) THE FOLLOWING LANGUAGE IS ADDED AT
THE END OF THE SECTION "MISCELLANEOUS
INVESTMENTS, INVESTMENT PRACTICES AND
RISKS."
EURO CONVERSION
Eleven member countries of the
European Economic and Monetary
Union (the "EMU") have qualified
for conversion of their national
currencies to the euro on January
1, 1999. The euro is a common
currency that is expected to
eventually be used as the sole
currency for these countries and
other EMU members that wish to
convert to the euro. National
currencies will remain for the
converting countries through at
least July of 2002 while the full
transition to the euro in the
countries involved in the
conversion occurs. Possible
consequences to funds that invest
in securities denominated in any of
the national currencies affected
include the risks that: (i) the
unification of economic and
monetary policies underpinning the
currency unification may increase
the potential for similarities in
the movements of markets in the
European countries converting to
the euro, (ii) contracts (including
contracts regarding currency
transactions) denominated in (or
tied to) those currencies may
become more difficult to enforce,
and that (iii) companies in which
the funds invest may be adversely
affected by their failure (or the
failure of other companies with
which they do business) to
adequately address the operational
aspects of the conversion.
Like other financial and business
organizations, the funds depend on
the proper function of their
service providers' computer and
other systems. The funds could be
adversely affected if the computer
or other systems used by Putnam
Management and the funds' other
service providers cannot
appropriately account for the
conversion to the euro. Putnam
Management and its affiliates
expect that their systems will be
able to address this issue without
any material interruption of
service. However, there can be no
assurance that the operations of
and services provided to the funds
and their shareholders will not be
adversely affected. Similarly,
companies in which the funds invest
may also experience similar
problems in dealing with the
conversion to the euro, which could
result in losses to the funds.
2) EFFECTIVE AS OF DECEMBER 30, 1998,
THE ELIGIBILITY REQUIREMENT FOR A
FINANCIAL INSTITUTION TRUST DEPARTMENT
TO
PURCHASE FUND SHARES WITHOUT AN
INITIAL SALES CHARGE OR A CDSC SET
FORTH IN ITEM (VI) OF "HOW TO BUY
SHARES-GENERAL-SALES WITHOUT SALES
CHARGES OR
CONTINGENT DEFERRED SALES CHARGES" IS
CHANGED TO THE FOLLOWING:
(vi) The fund may sell shares without
a sales charge or CDSC to a trust
department of any financial
institution purchasing shares of the
fund in its capacity as trustee
of any trust (other than a tax-
qualified retirement
plan
trust) through an arrangement
approved by Putnam Mutual Funds, if
the value of the shares of the fund
and other Putnam funds purchased or
held by all such trusts exceeds $1
million in the aggregate.
