54343 10/99
STATEMENT OF ADDITIONAL INFORMATION SUPPLEMENT DATED
OCTOBER 30, 1999 TO STATEMENTS OF ADDITIONAL INFORMATION
OF VARIOUS PUTNAM FUNDS:
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1) The section entitled "Qualified benefit plans;
Individual account plans" in the Statement of
Additional Information is hereby deleted and replaced by the
following:
QUALIFIED BENEFIT PLANS; INDIVIDUAL ACCOUNT PLANS. The
terms "class A qualified benefit plan" and "class M
qualified benefit plan" mean any employer-sponsored
plan or arrangement, whether or not tax-qualified and
whether or not Putnam Fiduciary Trust Company or its
affiliates provide recordkeeping or other services,
that initially invest at least $1 million or $500,000,
respectively, in class A shares or class M shares of
the fund and other Putnam funds.
The fund may sell class A shares at net asset value to
class A qualified benefit plans and may sell class M
shares at net asset value to class M qualified benefit
plans.
The table of sales charges in the prospectus applies to
sales to employer-sponsored retirement plans that
choose not to be treated as class A qualified benefit
plans, except that the fund may sell class A shares at
net asset value to employee benefit plans, including
plans with respect to which separate accounts are
maintained for each participant, of employers or of
affiliated (as defined in Section 2(a)(3)(C) of the
Investment Company Act of 1940) employers which have at
least $1 million in assets to whom such plan is made
available, in connection with a payroll deduction
system of plan funding (or other system acceptable to
Putnam Investor Services) by which contributions or
account information for plan participation are
transmitted to Putnam Investor Services by methods
acceptable to Putnam Investor Services.
Additional information about qualified benefit plans is
available from investment dealers or from Putnam Mutual
Funds.
2) The section entitled "Contingent Deferred Sales
Charges; Commissions" in the Statement of
Additional Information is hereby deleted and replaced by the
following:
CONTINGENT DEFERRED SALES CHARGES; COMMISSIONS
CLASS A SHARES. Except as described below, a CDSC of
0.50% (0.75% in the case of plans with less than $5
million in Putnam funds and other investments managed
by Putnam Management or its affiliates) of the total
amount redeemed is imposed on redemptions of shares
purchased by class A qualified benefit plans 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 plan is no longer liable
for any CDSC. Class A qualified benefit plans 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.
Similarly, class A shares purchased at net asset value
by any investor other than a class A qualified benefit
plan, including purchases pursuant to any Combined
Purchase Privilege, Right of Accumulation or Statement
of Intention, are subject to a CDSC of 1.00% or 0.50%,
respectively, if redeemed within the first or second
year after purchase, unless the dealer of record waived
its commission with Putnam Mutual Funds' approval. The
class A CDSC is imposed on the lower of the cost and
the current net asset value of the shares redeemed.
Except as described below for sales to class A
qualified benefit plans, Putnam Mutual Funds pays
investment dealers of record commissions on sales of
class A shares of $1 million or more, including
purchases pursuant to any Combined Purchase Privilege,
Right of Accumulation or Statement of Intention, 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 class A qualified
benefit plan, Putnam Mutual Funds pays commissions to
the dealer of record at the time of the sale on net
monthly purchases up to the following rates: 1.00% of
the first $1 million, 0.75% of the next $1 million and
0.50% thereafter.
Different CDSC and commission rates may apply to shares
purchased prior to April 15, 1997 and to shares
purchased by investment-only plans prior to August 1,
1999.
ALL SHARES. Investors who set up an Automatic Cash
Withdrawal Plan ("ACWP") for a share account (see
"Plans available to shareholders -- Automatic Cash
Withdrawal Plan") may withdraw through the ACWP up to
12% of the net asset value of the account (calculated
as set forth below) each year without incurring any
CDSC. Shares not subject to a CDSC (such as shares
representing reinvestment of distributions) will be
redeemed first and will count toward the 12%
limitation. If there are insufficient shares not
subject to a CDSC, shares subject to the lowest CDSC
liability will be redeemed next until the 12% limit is
reached. The 12% figure is calculated on a pro rata
basis at the time of the first payment made pursuant to
an ACWP and recalculated thereafter on a pro rata basis
at the time of each ACWP payment. Therefore,
shareholders who have chosen an ACWP based on a
percentage of the net asset value of their account of
up to 12% will be able to receive ACWP payments without
incurring a CDSC. However, shareholders who have
chosen a specific dollar amount (for example, $100 per
month from a fund that pays income distributions
monthly) for their periodic ACWP payment should be
aware that the amount of that payment not subject to a
CDSC may vary over time depending on the net asset
value of their account. For example, if the net asset
value of the account is $10,000 at the time of payment,
the shareholder will receive $100 free of the CDSC (12%
of $10,000 divided by 12 monthly payments). However,
if at the time of the next payment the net asset value
of the account has fallen to $9,400, the shareholder
will receive $94 free of any CDSC (12% of $9,400
divided by 12 monthly payments) and $6 subject to the
lowest applicable CDSC. This ACWP privilege may be
revised or terminated at any time.
No CDSC is imposed on the redemption of shares of any
class subject to a CDSC to the extent that the shares
redeemed (i) are no longer subject to the holding
period therefor, (ii) resulted from reinvestment of
distributions, or (iii) were exchanged for shares of
another Putnam fund, provided that the shares acquired
in such exchange or subsequent exchanges (including
shares of a Putnam money market fund) will continue to
remain subject to the CDSC, if applicable, until the
applicable holding period expires. In determining
whether the CDSC applies to each redemption, shares not
subject to a CDSC are redeemed first.
The fund will waive any CDSC on redemptions, in the
case of individual, joint or Uniform Transfers to
Minors Act accounts, in the event of death or post-
purchase disability of a shareholder, or for the
purpose of paying benefits pursuant to tax-qualified
retirement plans ("Benefit Payments"), and, in the case
of living trust accounts, in the event of the death or
post-purchase disability of the settlor of the trust.
Benefit Payments currently include, without limitation,
(1) distributions from an IRA due to death or
disability, (2) a return of excess contributions to an
IRA or 401(k) plan, and (3) distributions from
retirement plans qualified under Section 401(a) of the
Code or from a 403(b) plan due to death, disability,
retirement or separation from service. These waivers
may be changed at any time. Additional waivers may
apply to IRA accounts opened prior to February 1, 1994.
The fund will waive a CDSC on redemptions to pay
premiums for insurance under Putnam's insured investor
program.
ADDITIONAL INFORMATION ABOUT CLASS B SHARES
Except as noted below, Putnam Mutual Funds will pay a
4% commission on sales of class B shares of a fund only
to those financial intermediaries who have entered into
service agreements with Putnam Mutual Funds. For tax-
exempt funds, this commission includes a 0.20% pre-paid
service fee (except for Putnam Municipal Income Fund,
which has a 0.25% pre-paid service fee). For Putnam
Intermediate U.S. Government Income Fund, Putnam Mutual
Funds will pay a 2.75% commission to financial
intermediaries selling class B shares of the fund. For
money market funds, class B shares may only be
purchased as part of an exchange to class B shares of
another Putnam fund or from class B shares of another
Putnam fund. Class B share purchases for money market
funds are not subject to a separate CDSC, but if a
shareholder exchanges class B shares from a non-money
market fund to a money market fund and then redeems the
class B shares of the money market fund, that
redemption will be subject to the CDSC applicable to
the class B shares of the non-money market fund.
Therefore no up-front commission is paid on sales of
class B shares for money market funds. Putnam Mutual
Funds will retain any contingent deferred sales charges
imposed on redemptions of class B shares to compensate
it for the cost of paying the up-front commissions paid
to financial intermediaries for class B share sales.
3) The section entitled "Distribution Plans" in Part II of
the Statement of Additional
Information is hereby replaced with the following:
DISTRIBUTION PLANS
If the fund or a class of shares of the fund has
adopted a distribution plan, the prospectus describes
the principal features of the plan. This SAI contains
additional information which may be of interest to
investors.
Continuance of a plan is subject to annual approval by
a vote of the Trustees, including a majority of the
Trustees who are not interested persons of the fund and
who have no direct or indirect interest in the plan or
related arrangements (the "Qualified Trustees"), cast
in person at a meeting called for that purpose. All
material amendments to a plan must be likewise approved
by the Trustees and the Qualified Trustees. No plan
may be amended in order to increase materially the
costs which the fund may bear for distribution pursuant
to such plan without also being approved by a majority
of the outstanding voting securities of the fund or the
relevant class of the fund, as the case may be. A plan
terminates automatically in the event of its assignment
and may be terminated without penalty, at any time, by
a vote of a majority of the Qualified Trustees or by a
vote of a majority of the outstanding voting securities
of the fund or the relevant class of the fund, as the
case may be.
Putnam Mutual Funds compensates qualifying dealers
(including, for this purpose, certain financial
institutions) for sales of shares and the maintenance
of shareholder accounts.
Putnam Mutual Funds may suspend or modify its payments
to dealers. The payments are also subject to the
continuation of the relevant distribution plan, the
terms of the service agreements between the dealers and
Putnam Mutual Funds and any applicable limits imposed
by the National Association of Securities Dealers, Inc.
Financial institutions receiving payments from Putnam
Mutual Funds as described above may be required to
comply with various state and federal regulatory
requirements, including among others those regulating
the activities of securities brokers or dealers.
Except as otherwise agreed between Putnam Mutual Funds
and a dealer, for purposes of determining the amounts
payable to dealers for shareholder accounts for which
such dealers are designated as the dealer of record,
"average net asset value" means the product of (i) the
average daily share balance in such account(s) and (ii)
the average daily net asset value of the relevant class
of shares over the quarter.
CLASS A SHARES:
Putnam Mutual Funds makes quarterly payments to dealers
at the annual rates set forth below (as a percentage of
the average net asset value of class A shares for which
such dealers are designated the dealer of record)
except that payments to dealers for shares held by
class A qualified benefit plans may be made at other
rates, as described below. No payments are made during
the first year after purchase on shares purchased at
net asset value by shareholders that invest at least $1
million or that are class A qualified benefit plans,
unless the shareholder has made arrangements with
Putnam Mutual Funds and the dealer of record has waived
the sales commission.
RATE FUND
0.25% All funds currently making payments under a
class A distribution plan, except for those listed
below
0.50% for shares purchased on Putnam Global Equity Fund
or before 7/1/95; 0.25% for
shares purchased after 7/1/95
0.20% Putnam Tax-Free High Yield Fund
Putnam Tax-Free Insured Fund
0.20% for shares purchased on Putnam Balanced Retirement Fund
or before 12/31/89; 0.25% for Putnam Convertible Income-Growth Trust
shares purchased after 12/31/89 The George Putnam Fund of Boston
Putnam Global Growth Fund
Putnam Global Natural Resources Fund
Putnam Health Sciences Trust
The Putnam Fund for Growth and Income
Putnam Investors Fund
Putnam Vista Fund
Putnam Voyager Fund
0.20% for shares purchased on Putnam High Yield Trust
or before 3/31/90; 0.25% for Putnam U.S. Government Income Trust
shares purchased after 3/31/90
0.20% for shares purchased on Putnam Income Fund
or before 3/31/91; 0.25% for
shares purchased after 3/31/91
0.20% for shares purchased on Putnam Municipal Income Fund
or before 5/7/92; 0.25% for
shares purchased after 5/7/92
0.15% for shares purchased on Putnam Michigan Tax Exempt Income Fund
or before 3/9/92; 0.20% for Putnam Minnesota Tax Exempt Income Fund
shares purchased after 3/9/92 Putnam Ohio Tax Exempt Income Fund
0.15% for shares purchased on Putnam Massachusetts Tax Exempt Income Fund
or before 5/11/92; 0.20% for
shares purchased after 5/11/92
0.15% for shares purchased on Putnam New York Tax Exempt Opportunities Fund
or before 7/13/92; 0.20% for
shares purchased after 7/13/92
0.15% for shares purchased on Putnam California Tax Exempt Income Fund
or before 12/31/92; 0.20% for Putnam New Jersey Tax Exempt Income Fund
shares purchased after 12/31/92 Putnam New York Tax Exempt Income Fund
Putnam Tax Exempt Income Fund
0.15% for shares purchased on Putnam Arizona Tax Exempt Income Fund
or before 3/5/93; 0.20% for
shares purchased after 3/5/93
0.15% for shares purchased on Putnam Florida Tax Exempt Income Fund
or before 7/8/93; 0.20% for Putnam Pennsylvania Tax Exempt Income Fund
shares purchased after 7/8/93
0.00% Putnam California Money Market Fund
Putnam Money Market Fund
Putnam New York Money Market Fund
Putnam Preferred Income Fund
Putnam Tax Exempt Money Market Fund
Putnam Mutual Funds pays service fees to the dealer of
record for plans at the rate of up to 0.25% of average
net assets, depending on the level of service provided
by Putnam Fiduciary Trust Company or its affiliates, by
the dealer of record, and by third parties. Service
fees are paid quarterly to the dealer of record for
that quarter.
CLASS B SHARES:
Putnam Mutual Funds makes quarterly payments to dealers
at the annual rates set forth below (as a percentage of
the average net asset value of class B shares for which
such dealers are designated the dealer of record).
RATE FUND
0.25% All funds currently making payments under a
class B distribution plan, except for those listed
below
0.25%, except that the first Putnam Municipal Income Fund
year's service fees of 0.25%
are prepaid at time of sale
0.25%, except that the first Putnam Arizona Tax Exempt Income Fund
year's service fees of 0.20% Putnam California Tax Exempt Income Fund
are prepaid at time of sale 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 New York Tax Exempt Income Fund
Putnam New York Tax Exempt Opportunities Fund
Putnam Ohio Tax Exempt Income Fund
Putnam Pennsylvania Tax Exempt Income Fund
Putnam Tax Exempt Income Fund
0.20% for shares purchased on Putnam Tax-Free Insured Fund
or before 3/31/90; 0.25% for Putnam Tax-Free High Yield
shares purchased after 3/31/90;
first year's service fees are prepaid
at time of sale
0.00% Putnam Money Market Fund
CLASS C SHARES:
Putnam Mutual Funds makes quarterly payments to dealers
at the annual rates set forth below (as a percentage of
the average net asset value of class C shares for which
such dealers are designated the dealer of record).
RATE FUND
1.00% All funds currently making payments under a
class C distribution plan, except the fund listed
below
0.50% Putnam Money Market Fund
CLASS M SHARES:
Putnam Mutual Funds makes quarterly payments to dealers
at the annual rates set forth below (as a percentage of
the average net asset value of class M shares for which
such dealers are designated the dealer of record).
RATE FUND
0.65% All growth and growth and
income funds currently making
payments under a class M
distribution plan
0.45% Putnam Diversified Income Trust
0.40% All income and money
market funds currently
making payments under a class M distribution
plan (except for Putnam Diversified Income
Trust, Putnam Preferred Income
Fund and Putnam Money Market Fund)
0.25% Putnam Preferred Income Fund
0.15% Putnam Money Market Fund
