PUTNAM INVESTMENTS [GRAPHIC OMITTED: PUTNAM
SCALES LOGO]
PUTNAM ASSET ALLOCATION FUNDS
Supplement to Annual Report dated October 31, 1995
The following information has been prepared to provide class Y
shareholders with a performance overview specific to their
holdings. Class Y shares are offered exclusively to defined
contribution plans investing $250 million or more in one or more
of Putnam's funds or private accounts. Performance of class Y
shares, which incur neither a front-end load, distribution fee,
nor contingent deferred sales charge, will differ from
performance of class A, B, C and M shares, which are discussed
more extensively in the annual report.
FISCAL 1995 RESULTS AT A GLANCE
TOTAL RETURN
Periods ended 9/30/95
1 Year Life-of-Fund
cummulative annual
Growth Portfolio 20.94% 24.03% 19.37%(since 7/14/94)
Balanced Portfolio 18.89 22.87 18.05 (since 7/5/94)
Conservative Portfolio 15.54 16.47 13.35 (since 7/14/94)
SHARE VALUE 9/30/94 9/30/95
at NAV
Growth Portfolio $8.43 $10.09
Balanced Portfolio 8.33 9.66
Conservative Portfolio 8.23 9.19
DISTRIBUTIONS:
NO. INCOME CAPITAL GAINS TOTAL
Growth Portfolio 1 $0.084 ---- $0.084
Balanced Portfolio 4 0.216 ---- 0.216
Conservative Portfolio 4 0.290 ---- 0.290
Please note that past performance does not indicate future
results. Investment return and net asset value will fluctuate so
that your shares, when redeemed, may be worth more or less than
their original cost. See full Annual Report for information on
comparative benchmarks. If you have questions, please consult
your fund prospectus or call Putnam toll free at 1-800-752-9894.
