PRODUCT SUPPORT SERVICES
PROXY UPDATE MAY 14, 1996
Over the next several months, 66 Putnam funds are scheduled to
distribute proxy statements to their shareholders. Within each
proxy statement, Putnam will solicit shareholder votes on a
number of proposals relating to the operation of each fund.
These proposals will vary among funds. Attached is a matrix
which includes all funds scheduled for meetings, the meeting
date, and a list of proposals for each. Below are explanations
of each proposal.
TRUSTEES
Putnam is requesting that shareholders elect trustees to
represent their fund. The trustees are responsible for the
general oversight of the fund's business and for assuring that
the fund is managed in the best interest of the shareholders.
AUDITORS
Shareholders are requested to ratify the selection by the
trustees of the independent auditors of their fund for its
current fiscal year. Auditors will review the accounting
statements of the fund and issue a report validating the figures.
MANAGEMENT FEES
Shareholders are requested to approve an increase in management
expenses. Management expenses are the daily operating cost of
running the fund, including the salaries of the managers,
research expenses, and marketing fees.
CONVERSION OF FUND FROM OPEN-END TO CLOSED-END - SUNROOFING
A few of our closed-end funds are soliciting a shareholder vote
requesting the conversion of the funds to open-end status. The
organizational documents of those funds provides that if the fund
has been trading at a discount greater than 10% for the twelve
consecutive weeks preceding the fund s fiscal year end,
shareholders must be given the right to vote whether the fund
should be converted to an open-end fund. This policy is known as
the "sunroof provision".
MERGERS
Trustees are recommending the merger of three Putnam tax exempt
funds. The trustees recommend each merger because it will offer
shareholders the opportunity to pursue similar investment
objectives in a larger fund with greater investment flexibility
and lower expenses. An exchange of shares will take place at net
asset value.<PAGE>
INVESTMENT RESTRICTIONS
Putnam is requesting that shareholders approve a number of
amendments to, or deletions of, fundamental investment
restrictions. The proposals are listed below.
For eliminating the fund's fundamental investment restriction
which limits the fund's ability to pledge assets.
For eliminating the fund's fundamental investment restriction
with respect to margin transactions.
For eliminating the fund's fundamental investment restriction
with respect to short sales.
For amending the fund's fundamental investment restriction with
respect to investments in real estate.
For amending the fund's fundamental investment restriction with
respect to making loans by purchasing securities.
For eliminating the fund's fundamental investment restriction
with respect to investments in securities of issuers in which
management of the fund or Putnam Investment Management, Inc. owns
securities.
For amending the fund's fundamental investment restriction with
respect to diversification of investments.
For amending the fund's fundamental investment restriction with
respect to owning 10% of the securities of a single issuer.
For eliminating the fund's fundamental investment restriction
with respect to investment companies.
For eliminating the fund's fundamental investment restrictions
with respect to investments in illiquid securities.
Investing in oil, gas, mineral interests.
For eliminating the fund's fundamental investment restriction
with respect to investments for the purpose of gaining control of
a company's management.
For amending the fund's fundamental investment restriction with
respect to investments in issuers that have been in operation for
less than three years.
For eliminating the fund's fundamental investment restriction
prohibiting the fund from investing in investment companies if
prohibited by German law.
<PAGE>
For amending the fund's fundamental investment restriction with
respect to making loans through purchases of debt obligations,
repurchase agreements and securities loans.
For amending the fund's fundamental investment restriction with
respect to commodities transactions.
For eliminating the fund's fundamental investment restriction
with respect to options transactions.
For eliminating the fund's fundamental investment restriction
with respect to the purchase of restricted securities.
For eliminating the fund's fundamental investment restriction
with respect to warrants.
For eliminating the fund's fundamental investment restriction
with respect to trading accounts.
FOR INTERNAL USE ONLY
Product Support Services is committed to keeping Putnam informed
of any current product/industry information. If you have any
questions or comments, please contact PSS.
