46711 10/98
PROSPECTUS SUPPLEMENT
dated October 5, 1998 to:
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PUTNAM STRATEGIC INCOME FUND (the "fund")
Prospectus dated July 31, 1998
The third paragraph under the heading "How the fund is managed"
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 stated
below:
Business experience
Year (at least 5 years)
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D. William Kohli 1996 Employed as an investment
Managing Director professional by Putnam
Management since 1994. Prior
to September 1994, Mr. Kohli was
Executive Vice President and
Co-Director of Global Bond
Management.
Jennifer E. Leichter 1996 Employed as an investment
Managing Director professional by Putnam Management
since 1987.
Michael Martino 1996 Employed as an investment
Managing Director professional by Putnam
Management since 1994. Prior to
January 1994, Mr. Martino was
employed by Back Bay Advisors as
Executive Vice President and Chief
Investment Officer.
David L. Waldman 1998 Employed as an investment
Managing Director professional by Putnam
Management since 1997. Prior
to June 1997, Mr. Waldman was a
Senior Portfolio Manager at
Lazard Freres, and prior to
April 1995, held various titles at
Goldman Sachs including Analyst,
Associate, Portfolio Manager
and Vice President.
Jeffrey A. Kaufman 1998 Employed as an investment
Senior Vice President professional by Putnam
Management since 1998. Prior
to August 1998, Mr. Kaufman was
an Emerging Markets Research
Consultant at Salomon
Brothers.
