44296 6/98
Putnam Europe Growth Fund (the "fund")
Supplement dated June 26, 1998 to Statement of Additional
Information
dated October 30, 1997, as revised November 21, 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 an official stock exchange or other regulated market,
including, without limitation, the National Association of
Securities Dealers Automated Quotation System (this
restriction shall not be applicable to securities 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; (4) invest in the securities of
other registered open-end investment funds or companies,
except as they may be acquired as part of a merger,
consolidation or acquisition of assets; (5) invest more than
5% of the total assets in the securities of any one issuer
(other than the U.S. government or other sovereign
governments or their agencies or instrumentalities); (6)
acquire more than 10% of the outstanding voting securities
of any issuer; and (7) 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.
s:\funds\suppleme\eurjap.doc
