Supplement dated March 16, 1999 to
Putnam Diversified Income Trust (the "fund")
Statement of Additional Information dated January 30, 1999
The 17th paragraph under the heading "Investment Restrictions" is
replaced by the following:
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 15% of its net
assets in securities that are not traded on an official exchange
or other regulated market, including, without limitation, the
National Association of Securities Dealers Automated Quotation
System (this restriction shall not be applicable to bonds
determined by Putnam Investment Management, Inc. to be liquid and
for which a market price (including a dealer quotation) is
generally obtainable or determinable); (2) borrow money in excess
of 10% of the value of its total assets; (3) make short sales of
securities in excess of the fund's net asset value; and (4)
together with other mutual funds managed by Putnam Investment
Management, Inc., acquire more than 50% of the outstanding voting
securities of any issuer.
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