50145 2/99
PROSPECTUS SUPPLEMENT
dated February 8, 1999 to:
- -----------------------------------------------------------------
PUTNAM CAPITAL APPRECIATION FUND
Prospectuses dated September 30, 1998
In the section entitled "Who manages the fund?" the second
paragraph is replaced with the following:
The following officers of Putnam Investment Management, Inc.
("Putnam Management") have had primary responsibility for the day-
to-day management of the fund's portfolio since the years shown
below. Their experience as portfolio managers or investment
analysts over at least the last five years is also shown (except
as noted below):
Manager Since Experience
- ---------- ------ ----------------------------
Thomas R. Haslett 1999 Employed by Putnam Management
Managing Director since 1996. Prior to December, 1996,
Mr. Haslett was employed at Montgomery
Asset Management Ltd.
Michael K. Arends 1999 Employed by Putnam Management
Senior Vice President since 1997. Prior to November, 1997,
Mr. Arends was employed at Phoenix
Duff & Phelps, and prior to August, 1994,
he was employed at Kemper Financial Services.
William H. Miller 1997 Employed by Putnam Management
Senior Vice President since 1997. From 1995 to 1997, Mr.
Miller was employed at Delaware
Management Holdings, Inc. and from 1994 to
1995, he was employed at Janney Montgomery
Scott. Before 1994, he was employed
at Rutherford, Brown & Catherwood, Inc.
Gerald S. Zukowski 1993 Employed by Putnam Management
Senior Vice President since 1989.
Michael E. Nance 1999 Employed by Putnam
Vice President Management since 1994. Prior to
June, 1994, Mr. Nance attended the
University of Chicago Graduate
School of Business.
