George Putnam
Chairman of the Trustees
The Putnam Funds
One Post Office Square
Boston, Massachusetts 02109
Dear Shareholder:
I am writing to ask you for your vote on an important matter that
affects your investment in Putnam Intermediate Government Income
Trust. While you are welcome to join us at the Putnam
Intermediate Government Income Trust meeting this October, most
shareholders cast their vote by filling out and signing the
enclosed proxy card.
After viewing both the long-term performance of Putnam
Intermediate Government Income Trust and the current environment
for the securities in which it invests, Putnam Management
presented the Trustees with a recommendation that we believe may
offer significant advantages to shareholders: that your fund be
combined with Putnam Master Intermediate Income Trust.
Although the basic strategies of both funds are similar, Putnam
Master Intermediate Income Trust has a broader range of
securities, including higher risk, higher yielding bonds, in
which it may invest, as well as a superior performance record.
Putnam Master Intermediate Income Trust has outperformed Putnam
Intermediate Government Income Trust in six of the nine years
since the inception of both funds - at both net asset value and
market price. Cumulative total returns for both funds are as
follows: as of June 30, 1997, Putnam Master Intermediate Income
Trust had returned 130.15% at net asset value (96.32% at market
price) since its inception on April 29, 1988, while Putnam
Intermediate Government Income Trust returned 107.85% at net
asset value (70.71% at market price) since its inception on June
27, 1988. Of Course, past performance is not indicative of
future results.
Your vote is important to us. We appreciate the time and
consideration you will give to this important matter. You should
review the enclosed proxy statement which contains detailed
information about the proposed combination of the two funds,
including risks associated with investment in each. Should you
have any questions about your fund or your investment, you should
speak with your financial advisor or call a Putnam representative
at 1-800-225-1581 weekdays 8:30 a.m. to 8:00 p.m., and Saturdays
from 8:30 a.m. to 5:00 p.m. Eastern Time.
Sincerely,
/s/ George Putnam
George Putnam
34432
