Putnam Diversified Income Trust (the "fund")
Supplement dated May 28, 1997 to Statement of
Additional Information dated January 30, 1997
In connection with the offering of its shares in Japan, the fund
has undertaken to the Japanese Securities Dealers Association
that the fund will not: (1) invest more than 10% of its net
assets in securities that are not traded on a recognized
exchange; (2) borrow money in excess of 10% of the value of its
total assets;
(3) invest more than 5% of its total assets in the securities of
any one issuer (other than the U.S. or other sovereign
government); (4) acquire more than 10% of the outstanding voting
securities of any issuer; and (5) together with other mutual
funds managed by Putnam Investment Management, Inc., acquire more
than 15% of the outstanding voting securities of any issuer.
If the undertaking is violated, the fund will, promptly after
discovery, take such action as may be necessary to cause the
violation to cease, which shall be the only obligation of the
fund and the only remedy in respect of the violation. This
undertaking will remain in effect as long as shares of the fund
are qualified for offer or sale in Japan and such undertaking is
required by the Japanese Securities Dealers Association as a
condition of such qualification.
34487 5/97
