THE GEORGE PUTNAM FUND OF BOSTON
Prospectus Supplement dated January 8, 1996 to the
Class A Prospectus dated December 1, 1995
On January 5, 1996, the Trustees approved a proposal to increase
the fees payable to Putnam Investment Management, Inc. ("Putnam
Management"), under the fund's Management Contract. The proposed
increase is subject to shareholder approval and will be submitted
to shareholders at a meeting scheduled to be held on July 11,
1996. If approved at that meeting, management fees would
thereafter be paid at the annual rate of 0.65% of the first $500
million of average net assets, 0.55% of the next $500 million,
0.50% of the next $500 million, 0.45% of the next $5 billion,
0.425% of the next $5 billion, 0.405% of the next $5 billion,
0.39% of the next $5 billion, and 0.38% of any amount thereafter.
As a result of the proposed change, the section "Expenses
summary" on pages 2 and 3 of the prospectus is replaced with the
following:
EXPENSES SUMMARY
Expenses are one of several factors to consider when investing in
the fund. The following table summarizes expenses attributable
to class A shares based on the fund's most recent fiscal year.
The example shows the cumulative expenses attributable to a
hypothetical $1,000 investment in class A shares of the fund over
specified periods.
ANNUAL FUND OPERATING EXPENSES
(as a percentage of average net assets)
Total fund
Management 12b-1 Other operating
fees fees expenses expenses
---------- ----- -------- ---------
0.58% 0.25% 0.28% 1.11%
The table is provided to help you understand the expenses of
investing in the fund and your share of the operating expenses
that the fund incurs. The annual management fees and total fund
operating expenses shown in the table have been restated to
reflect the proposed increase in the management fees payable to
Putnam Management. Actual management fees and total fund
operating expenses for class A shares were 0.38% and 0.91%,
respectively.
(over, please)
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EXAMPLE
Your investment of $1,000 would incur the following expenses,
assuming 5% annual return and redemption at the end of each
period:
1 3 5 10
year years years years
$11 $35 $61 $136
The example does not represent past or future expense levels, and
actual expenses may be greater or less than those shown. Federal
regulations require the example to assume a 5% annual return, but
actual annual return varies. The example does not reflect any
charges or expenses related to your employer's plan.
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