Prospectus Supplement 11/98 48518
dated November 12, 1998 to:
PUTNAM BALANCED FUND, PUTNAM INTERNATIONAL FUND AND PUTNAM JAPAN
FUND (THE "FUNDS")
Prospectus dated December 30, 1997
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:
YEAR BUSINESS EXPERIENCE
(AT LEAST 5 YEARS)
------- -------------------------
PUTNAM BALANCED FUND
Manuel Weiss 1998 Employed as an investment
professional
Senior Vice President by Putnam Management
since 1987.
PUTNAM INTERNATIONAL FUND
Justin M. Scott 1995 Employed as an investment
professional
Managing Director by Putnam Management
since 1988.
Seung H. Minn 1997 Employed as an investment
professional
Senior Vice President by Putnam Management
since 1995. Prior to June,
1995, Mr. Minn was a Vice
President and Portfolio
Manager at Templeton
Quantitative Advisors.
PUTNAM JAPAN FUND
Robert Swift 1995 Employed as an investment
professional
Managing Director by Putnam Management
since 1995. Prior to August,
1995, Mr. Swift was director
and Senior Portfolio Manager,
IAI International/Hill Samuel
Investment Advisors .
