PUTNAM CAPITAL MANAGER TRUST (the "Trust")
Prospectus Supplement dated December 11, 1996
to Prospectuses dated May 1, 1996
PCM Money Market Fund (the "fund"), along with four other Putnam
money market funds, has purchased insurance, which, among other
things, will insure a fund against a decrease in the value of a
security held by it due to default or bankruptcy. Most
securities and instruments in which the funds invest, other than
U.S. Government securities, are covered by this insurance. The
insurance may provide the fund with some protection in the event
of a decrease in value of certain of its portfolio securities due
to default or bankruptcy, but does not insure or guarantee that
the fund will maintain a stable net asset value of $1.
The maximum amount of total coverage under the policy is $30
million, subject to a deductible in respect of each loss equal to
the lesser of $1 million or 0.30% of the fund's net assets. As
of the date of this supplement, the fund's net assets totaled
$421,072,271. Each of the money market funds that has purchased
the insurance has access to the full amount of insurance under
the policy, subject to the deductible. Accordingly, depending
upon the circumstances, the fund may not be entitled to recover
under the policy, even though it has experienced a loss that
would otherwise be insurable. The annual cost to the fund of
purchasing the insurance is expected to equal approximately 0.02%
of the fund's average net assets. This amount is not reflected
in the expense information shown in the prospectus under the
heading "How the Trust is managed."
--------------------
In the section of the prospectus of the Trust entitled "How the
Trust is managed," the chart indicating the officers of Putnam
Investment Management, Inc. ("Putnam Management") who have
primary responsibility for the day-to-day management of PCM
Global Growth Fund is replaced with the following:
Business experience
Year (at least 5 years)
---- -----------------------------
PCM Global Growth
Fund
Anthony W. Regan 1996 Employed as an investment
Senior Managing Director professional by Putnam
Management since 1987.
<PAGE>
Carol C. McMullen 1995 Employed as an investment
Managing Director professional by Putnam
Management since June, 1995.
Prior to June, 1995, Ms.
McMullen was Senior Vice
President at Baring Asset
Management.
C. Kim Goodwin 1996 Employed as an investment
Senior Vice President professional by Putnam
Management since May, 1996.
Prior to May, 1996 Ms.
Goodwin was Vice President at
Prudential Mutual Fund
Investment Management, and
prior to February, 1993, Ms.
Goodwin was Assistant Vice
President at Mellon Bank
Corporation.
John K. Storkerson 1992 Employed as an investment
Senior Vice President professional by Putnam
Management since 1979.
Robert Swift 1996 Employed as an investment
Senior Vice President professional by Putnam
Management since August,
1995. Prior to August, 1995,
Mr. Swift was Director and
Senior Portfolio Manager at
IAI International/Hill Samuel
Investment Advisors.
Ami T. Kuan 1996 Employed as an investment
Vice President professional by Putnam
Management since April, 1993.
Prior to April, 1993, Ms.
Kuan attended the MIT Sloan
School of Management.
HV-2090 29854 12/96
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