THE GEORGE PUTNAM FUND OF BOSTON
Prospectus Supplement dated July 11, 1996
to Prospectuses dated December 1, 1995
At a meeting held on July 11, 1996, shareholders of the fund were
asked to approve a number of changes to the fund's fundamental
investment restrictions, including the elimination of certain of
these restrictions. Certain of these proposals related to the
restrictions set forth in the prospectus in the section "Limiting
investment risk" on page 14.
The fund may now invest up to 5% of its net assets in companies
that, together with any predecessors, have been in operation for
less than three years (other than the U.S. government). This
policy was also made non-fundamental, which allows for it to be
changed in the future by the fund without shareholder approval.
In addition, the meeting was adjourned until July 31, 1996 with
respect to a number of other proposals to permit further
solicitation on those matters. If, as anticipated, these
proposals receive sufficient votes for approval at the July 31
meeting, the fund will be able to:
- acquire more than 10% of the outstanding voting
securities of any issuer with respect to 25% of its total
assets;* and
- invest more than 5% of its net assets in any one issuer
(other than securities of the U.S. government, its
agencies or instrumentalities) with respect to 25% of its
total assets.*
If any or both of these proposals does not receive sufficient
votes for approval, the fund's prospectus will be revised as
appropriate.
To the extent the fund invests a significant portion of its
assets in the securities of a particular issuer, the fund will be
subject to an increased risk of loss if the market value of such
issuer's securities declines.
Restrictions marked with an asterisk (*) above are summaries of
fundamental policies and may not be changed without shareholder
approval. See the fund's Statement of Additional Information for
the full text of these policies as well as the fund's other
fundamental policies, some of which were also changed by vote of
shareholders.
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