Prospectus Supplement 42319 4/98
dated April 6, 1998 to:
_________________________________________________________________
PUTNAM STRATEGIC INCOME FUND (the "fund")
Prospectus dated July 30, 1997 as revised February 28, 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)
------- -------------------------
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 and, prior to
October, 1993, Senior
Portfolio Manager at Franklin
Advisors/Templeton Investment
Counsel.
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.
Gail S. Attridge 1997 Employed as an investment
Senior Vice President professional by Putnam
Management since 1993. Prior
to November, 1993, Ms.
Attridge was an Analyst at
Keystone Custody
International.
