PUTNAM BALANCED GOVERNMENT FUND
Supplement dated July 11, 1994
to Prospectus dated April 1, 1994
Michael Martino, Senior Vice President of Putnam Investment
Management Inc. ("Putnam Management") and Vice President of the
Fund, has had primary responsibility for the day-to-day
management of the Fund's portfolio since July, 1994. Mr. Martino
has been employed by Putnam Management since January, 1994.
Prior to joining Putnam Management, Mr. Martino was employed by
Back Bay Advisors in the positions of Executive Vice President
and Chief Investment Officer from 1992 to 1994, Senior Vice
President and Senior Portfolio Manager from 1990 to 1992, and
Senior Portfolio Manager from 1988 to 1990.