SCHEDULE 14A INFORMATION

                    PROXY STATEMENT PURSUANT TO SECTION 14(A)14(a)
                      OF THE SECURITIES EXCHANGE ACT OF 1934

                            (Amendment No.  )
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                          Filed by the Registrant                    / X /

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                Filed by a Partyparty other than the Registrant         /   /

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CHECK THE APPROPRIATE BOX:
 ----Check the appropriate box:

/ X /   Preliminary Proxy Statement

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/   /   Preliminary Additional Materials                                  
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 ----Confidential, for Use of the Commission Only (as permitted by Rule
        14a-6(e) (2))

/   /   Definitive Proxy Statement

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/   /   Definitive Additional Materials                                   
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/   /   Soliciting Material Pursuant to Sec. 240.14a-11(e)240.14a-11(c) or - ----     Sec. 240.14a-12

                            ASSET ALLOCATION FUNDS
                        PUTNAM CAPITAL APPRECIATION FUND
                           PUTNAM CLASSIC EQUITY FUND
                     PUTNAM CONVERTIBLE INCOME-GROWTH TRUST
                          PUTNAM DISCOVERY GROWTH FUND
                           PUTNAM EQUITY INCOME FUND
                           PUTNAM EUROPE EQUITY FUND
                        THE GEORGE PUTNAM FUND OF BOSTON
                              PUTNAM FUNDS TRUST
                          PUTNAM GLOBAL EQUITY FUND
                      PUTNAM GLOBAL NATURAL RESOURCES FUND
                      THE PUTNAM FUND FOR GROWTH AND INCOME
                          PUTNAM HEALTH SCIENCES TRUST
                         PUTNAM INTERNATIONAL EQUITY FUND
                           PUTNAM INVESTMENT FUNDS
                             PUTNAM INVESTORS FUND
                         PUTNAM NEW OPPORTUNITIES FUND
                       PUTNAM OTC & EMERGING GROWTH FUND
                            TAX SMART FUNDS TRUST
                    PUTNAM UTILITIES GROWTH AND INCOME FUND
                               PUTNAM VISTA FUND
                              PUTNAM VOYAGER FUND

                 (Name of Registrant as Specified In Its Charter)

                      (Name of Person(s) Filing Proxy Statement)

PAYMENT OF FILING FEE (CHECK THE APPROPRIATE BOX)Statement,
                            if other than Registrant)

Payment of Filing Fee (Check the appropriate box):

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/ xX /   $125 per Exchange Act Rules 0-11(c)(1)(ii),
- ----           14a-6(i)(1), or 14a-6(i)(2).                                
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/   /    $500 per each party to the controversy pursuant
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/   /   Fee computed on table below per Exchange Act Rules
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(1) Title of each class of securities to which transaction applies:

(2) Aggregate number of securities to which transaction applies:

(3) Per unit price or other underlying value of transaction
    computed pursuant to Exchange Act Rule 0-11:0-11 (set forth the
    amount on which the filing fee is calculated and state how it
    was determined):

(4) Proposed maximum aggregate value of transaction:

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/   /   Fee paid previously with preliminary materials.

/   /   Check box if any part of the fee is offset as provided 
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        Act Rule 0-11(a)(2) and identify the filing for which the offsetting
        fee was paid previously. Identify the previous filing by registration
        statement number, or the Form or Schedule and the date of its filing.

(1) Amount Previously Paid:

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IMPORTANT INFORMATION 
FOR SHAREHOLDERS INImportant information for shareholders of

THE GEORGE PUTNAM FUND OF BOSTON

THE DOCUMENT YOU HOLD IN YOUR HANDS CONTAINS YOUR PROXY STATEMENT
AND PROXY CARD.  A PROXY CARD IS, IN ESSENCE, A BALLOT.  WHEN YOU
VOTE YOUR PROXY, IT TELLS US HOW TO VOTE ON YOUR BEHALF ON
IMPORTANT ISSUES RELATING TO YOUR FUND.  IF YOU COMPLETE AND SIGN
THE PROXY, WE'LL VOTE IT EXACTLY AS YOU TELL US.  IF YOU SIMPLY
SIGN THE PROXY, WE'LL VOTE IT IN ACCORDANCE WITH THE TRUSTEES'
RECOMMENDATIONS ON PAGE  .

WHILE INVESTORS SOMETIMES FIND A PROXY STATEMENT INTIMIDATING, WE
ARE, IN FACT, ASKING FOR YOUR VOTE ON JUST A FEW MATTERS.  SO WE
URGE YOU TO SPEND A COUPLE OF MINUTES WITH THE PROXY STATEMENT,
FILL OUT YOUR PROXY CARD, AND RETURN IT TO US.  WHEN SHAREHOLDERS
DON'T RETURN THEIR PROXIES IN SUFFICIENT NUMBERS, WE HAVE TO
INCUR THE EXPENSE OF FOLLOW-UP SOLICITATIONS, WHICH CAN COST YOUR
FUND MONEY.  

WE WANT TO KNOW HOW YOU WOULD LIKE TO VOTE AND WELCOME YOUR
COMMENTS.  PLEASE TAKE A FEW MOMENTS WITH THESE MATERIALS AND
RETURN YOUR PROXY TO US. 

                        (PUTNAMFUNDS

The document you hold in your hands contains your proxy statement and
proxy card. Your proxy tells us how to vote on your behalf on important
issues relating to your fund. If you complete and sign the proxy, we'll
vote it exactly as you tell us. If you simply sign the proxy, we'll vote
it in accordance with the Trustees' recommendations on pages 8 and 9.

We urge you to carefully review the proxy statement, and provide your
voting instructions by using any of the methods shown on your proxy
card. When shareholders don't return their proxies in sufficient
numbers, we have to make follow up solicitations, which can cost your
fund money.

We want to know how you would like to vote and welcome your comments.
Please take a few minutes with these materials and return your proxy to
us.

PUTNAM INVESTMENTS

[SCALE LOGO APPEARS HERE)
                          BOSTON * LONDON * TOKYO

TABLE OF CONTENTSOMITTED]


Table of contents

A Message from the Chairman. . . . . . . . . . . . . . . . . . . . . . . .1Chairman                       1

Notice of Shareholder Meeting. . . . . . . . . . . . . . . . . . . . . . .2Meeting                     2

Trustees' Recommendations. . . . . . . . . . . . . . . . . . . . . . . . .3Recommendations                         3

PROXY CARD ENCLOSED

If you have any questions, please contact us at the special toll-
free number we have set up for you (1-800-225-1581)1-800-225-1581 or call
your financial adviser.
advisor.


[GRAPHIC OMITTED: PHOTO OF JOHN A. HILL]

A MESSAGE FROM THE CHAIRMAN

(Photograph of George Putnam appears here)Message from the Chairman

Dear Fellow Shareholder:

I am writing to you to ask for your vote on important questionsmatters that
affect your investment in your fund.the Putnam funds. While you are, of course,
welcome to join us at your fund's meeting, most shareholders cast their
vote by filling out and signing the enclosed proxy.proxy cards, by calling or
by voting via the Internet. We are asking for your vote on thesethe following
matters:

1.  ELECTING TRUSTEES TO OVERSEE YOUR FUND; 

2.  RATIFYING THE SELECTION BY THE TRUSTEES OF THE INDEPENDENT
    AUDITORS OF YOUR FUND FOR ITS CURRENT FISCAL YEAR; 

3.A.     APPROVING A PROPOSAL TO AMEND THE FUND'S AGREEMENT AND
         DECLARATION OF TRUST WITH RESPECT TO DIVERSIFICATION OF
         INVESTMENTS;

3.B.     APPROVING A PROPOSAL TO AMEND THE FUND'S AGREEMENT AND
         DECLARATION OF TRUST WITH RESPECT TO INVESTMENTS IN ISSUERS
         THAT HAVE BEEN IN OPERATION FOR LESS THAN THREE YEARS;

3.C.     APPROVING A PROPOSAL TO AMEND THE FUND'S AGREEMENT AND
         DECLARATION OF TRUST WITH RESPECT TO THE PURCHASE OF CERTAIN
         ILLIQUID SECURITIES;

3.D.     APPROVING A PROPOSAL TO AMEND THE FUND'S AGREEMENT AND
         DECLARATION OF TRUST WITH RESPECT TO INVESTMENTS IN
         SECURITIES OF ISSUERS IN WHICH MANAGEMENT OF THE FUND OR
         PUTNAM MANAGEMENT OWNS SECURITIES;

3.E.     APPROVING A PROPOSAL TO AMEND THE FUND'S AGREEMENT AND
         DECLARATION OF TRUST WITH RESPECT TO OWNING 10% OF THE
         SECURITIES OF A SINGLE ISSUER;

3.F.     APPROVING A PROPOSAL TO AMEND THE FUND'S FUNDAMENTAL
         INVESTMENT RESTRICTIONS RELATING TO INVESTMENTS IN REAL
         ESTATE;

3.G.     APPROVING A PROPOSAL TO AMEND THE FUND'S AGREEMENT AND
         DECLARATION OF TRUST WITH RESPECT TO MARGIN TRANSACTIONS;

3.H.     APPROVING A PROPOSAL TO ELIMINATE THE FUND'S FUNDAMENTAL
         INVESTMENT RESTRICTIONS WITH RESPECT TO SHORT SALES;

3.I.     APPROVING A PROPOSAL TO AMEND THE FUND'S FUNDAMENTAL
         INVESTMENT RESTRICTION WITH RESPECT TO MAKING LOANS BY
         PURCHASING SECURITIES;

3.J.     APPROVING A PROPOSAL TO AMEND THE FUND'S AGREEMENT AND
         DECLARATION OF TRUST WITH RESPECT TO MAKING LOANS THROUGH
         REPURCHASE AGREEMENTS AND SECURITIES LOANS;

3.K.     APPROVING A PROPOSAL TO ELIMINATE THE FUND'S FUNDAMENTAL
         INVESTMENT RESTRICTION PROHIBITING THE FUND FROM INVESTING
         IN INVESTMENT COMPANIES IF PROHIBITED BY GERMAN LAW; AND

4.  APPROVING A NEW MANAGEMENT CONTRACT BETWEEN YOUR FUND AND
    PUTNAM INVESTMENT MANAGEMENT, INC., INCLUDING AN INCREASE IN
    THE MANAGEMENT FEE PAYABLE BY YOUR FUND.

A word about the management fee increase.  A fee increase is
proposed only after(1) Electing Trustees;

(2) Approving a great dealnumber of thoughtchanges to various funds' fundamental
    investment restrictions and analysis on the
partinvestment objectives;

(3) Approving an amendment to various funds' Agreements and Declarations
    of Trust.

Please see page 5 for list of the Trustees.  For several years the Trustees have been
carefully studying the management fees, investment performance,
and expense ratios of each of the Putnam funds and also major
competingaffected funds.  This comprehensive review resulted in
recommendations for fee increases for some funds and decreases
for others.  

After giving careful consideration to your fund's superior
investment performance in recent years, the Trustees are
recommending the approval of a new management fee which conforms
to the fees of similar Putnam funds.  The new management fee 
will result in an increase of $0.20 in annual expenses for each
$100 invested.  Your Trustees believe that this increase, the
first since 1988, will provide Putnam Investment Management, Inc.
with a fee that is fair and reasonable when compared with the
fees paid to other high-quality fund managers.  We encourage you
to support the Trustees' recommendations.

Although we would like very much to have each shareholder attend their fund'sthis
meeting, we realize this isthat it may not be possible. Whether or not you plan
to be present, we need your vote. We urge you to complete, sign,record your voting
instructions by telephone, via the Internet or by completing, signing,
and returnreturning the enclosed proxy card promptly. A postage-paid envelope
is enclosed.enclosed for mailing, and the telephone and Internet voting
instructions are listed at the top of your proxy card.

I'm sure that you, like most people, lead a busy life and are tempted to
put this proxy aside for another day. Please don't. When shareholders don't returndo
not vote their proxies, their fund may have to incur the expense of
follow-up solicitations. All shareholders benefit from the speedy return
of proxies.

Your vote is important to us. We appreciate the time and consideration that I
am sure you will give thisthese important matter.matters. If you have questions
about the proposals, contact your financial
advisor orplease call a Putnam customer service
representative at 1-800-225-1581.1-800-225-1581 or contact your financial advisor.

Sincerely yours,

(signature/S/ JOHN A. HILL
John A. Hill, Chairman



Notice of George Putnam)
                             George Putnam, Chairman

a Meeting of Shareholders

* This is the formal agenda for your fund's shareholder meeting. It
tells you what proposals will be voted on and the time and place of the
meeting, in the event you attend in person.

To the Shareholders of:

PUTNAM ASSET ALLOCATION: BALANCED PORTFOLIO
PUTNAM ASSET ALLOCATION: CONSERVATIVE PORTFOLIO
PUTNAM ASSET ALLOCATION: GROWTH PORTFOLIO
PUTNAM CAPITAL APPRECIATION FUND
PUTNAM CAPITAL OPPORTUNITIES FUND
PUTNAM CLASSIC EQUITY FUND
PUTNAM CONVERTIBLE INCOME-GROWTH TRUST
PUTNAM DISCOVERY GROWTH FUND
PUTNAM EQUITY INCOME FUND
PUTNAM EUROPE EQUITY FUND
THE GEORGE PUTNAM FUND OF BOSTON
NOTICE OF A MEETING OF SHAREHOLDERS


THIS ISPUTNAM GLOBAL EQUITY FUND
PUTNAM GLOBAL NATURAL RESOURCES FUND
THE FORMAL AGENDAPUTNAM FUND FOR YOUR FUND'S SHAREHOLDER MEETING. 
IT TELLS YOU WHAT MATTERS WILL BE VOTED ONGROWTH AND THE TIMEINCOME
PUTNAM GROWTH OPPORTUNITIES FUND
PUTNAM HEALTH SCIENCES TRUST
PUTNAM INTERNATIONAL CAPITAL  OPPORTUNITIES FUND
PUTNAM INTERNATIONAL EQUITY FUND
PUTNAM INTERNATIONAL GROWTH AND  PLACE
OF THE MEETING, IF YOU CAN ATTEND IN PERSON.

To the Shareholders of The George Putnam Fund of Boston:INCOME FUND
PUTNAM INTERNATIONAL NEW  OPPORTUNITIES FUND
PUTNAM INVESTORS FUND
PUTNAM MID CAP VALUE FUND
PUTNAM NEW OPPORTUNITIES FUND
PUTNAM NEW VALUE FUND
PUTNAM OTC & EMERGING GROWTH FUND
PUTNAM RESEARCH FUND
PUTNAM SMALL CAP GROWTH FUND
PUTNAM SMALL CAP VALUE FUND
PUTNAM TAX SMART EQUITY FUND
PUTNAM UTILITIES GROWTH AND INCOME FUND
PUTNAM VISTA FUND
PUTNAM VOYAGER FUND

A Meeting of Shareholders of your fund will be held on JulyNovember 11, 19962004
at 2:11:00 p.m.a.m., Boston time, at the principal offices of the fund on the
eighth floor of One Post Office Square, Boston, Massachusetts 02109, to
consider the following:

1. ELECTING TRUSTEES. SEE PAGE  . 

2.   RATIFYING THE SELECTION BY THE TRUSTEES OF THE INDEPENDENT
     AUDITORS OF YOUR FUND FOR ITS CURRENT FISCAL YEAR.  SEE 
     PAGE  .

3.A. APPROVING A PROPOSAL TO AMEND THE FUND'S AGREEMENT AND
     DECLARATION OF TRUST WITH RESPECT TO DIVERSIFICATION OF
     INVESTMENTS.  SEE PAGE  .

3.B. APPROVING A PROPOSAL TO AMEND THE FUND'S AGREEMENT AND
     DECLARATION OF TRUST WITH RESPECT TO INVESTMENTS IN ISSUERS
     THAT HAVE BEEN IN OPERATION FOR LESS THAN THREE YEARS.  SEE
     PAGE    .

3.C. APPROVING A PROPOSAL TO AMEND THE FUND'S AGREEMENT AND
     DECLARATION OF TRUST WITH RESPECT TO THE PURCHASE OF CERTAIN
     ILLIQUID SECURITIES.  SEE PAGE    .

3.D. APPROVING A PROPOSAL TO AMEND THE FUND'S AGREEMENT AND
     DECLARATION OF TRUST WITH RESPECT TO INVESTMENTS IN
     SECURITIES OF ISSUERS IN WHICH MANAGEMENT OF THE FUND OR
     PUTNAM MANAGEMENT OWNS SECURITIES.  SEE PAGE    .

3.E. APPROVING A PROPOSAL TO AMEND THE FUND'S AGREEMENT AND
     DECLARATION OF TRUST WITH RESPECT TO OWNING 10% OF THE
     SECURITIES OF A SINGLE ISSUER.  SEE PAGE   .

3.F. APPROVING A PROPOSAL TO AMEND THE FUND'S FUNDAMENTAL
     INVESTMENT RESTRICTIONS RELATING TO INVESTMENTS IN REAL
     ESTATE.  SEE PAGE   .

3.G. APPROVING A PROPOSAL TO AMEND THE FUND'S AGREEMENT AND
     DECLARATION OF TRUST WITH RESPECT TO MARGIN TRANSACTIONS. 
     SEE PAGE   .

3.H. APPROVING A PROPOSAL TO ELIMINATE THE FUND'S FUNDAMENTAL
     INVESTMENT RESTRICTIONS WITH RESPECT TO SHORT SALES.  SEE
     PAGE   .

3.I. APPROVING A PROPOSAL TO AMEND THE FUND'S FUNDAMENTAL
     INVESTMENT RESTRICTION WITH RESPECT TO MAKING LOANS BY
     PURCHASING SECURITIES.  SEE PAGE   .

3.J. APPROVING A PROPOSAL TO AMEND THE FUND'S AGREEMENT AND
     DECLARATION OF TRUST WITH RESPECT TO MAKING LOANS THROUGH
     REPURCHASE AGREEMENTS AND SECURITIES LOANS.  SEE PAGE   .

3.K. APPROVING A PROPOSAL TO ELIMINATE THE FUND'S FUNDAMENTAL
     INVESTMENT RESTRICTION PROHIBITING THE FUND FROM INVESTING
     IN INVESTMENT COMPANIES IF PROHIBITED BY GERMAN LAW.  SEE
     PAGE   .

4.   APPROVING A NEW MANAGEMENT CONTRACT BETWEEN YOUR FUND AND
     PUTNAM INVESTMENT MANAGEMENT, INC., INCLUDING AN INCREASE IN
     THE MANAGEMENT FEE PAYABLE BY THE FUND.  SEE PAGE  .

5.   TRANSACTING OTHER BUSINESS AS MAY PROPERLY COME BEFORE THE
     MEETING.Electing your fund's Trustees;

2A. Approving an amendment to certain funds' fundamental investment
restrictions with respect to borrowing;

2B. Approving an amendment to certain funds' fundamental investment
restrictions with respect to making loans;

2C. Approving an amendment to certain funds' fundamental investment
restrictions with respect to diversification of investments;

2D. Approving an amendment to certain funds' fundamental investment
restrictions with respect to issuance of senior securities;

2E. Approving an amendment to a fund's investment objective; and

3. Approving an amendment to certain funds' Agreements and Declarations
of Trust.

By the Trustees

John A. Hill, Chairman
George Putnam, Chairman 
William F. Pounds, Vice ChairmanIII, President

Jameson A. Baxter
Donald S. Perkins 
Hans H. Estin                       George Putnam, III
John A. Hill                        Eli ShapiroCharles B. Curtis
Ronald J. Jackson
Paul L. Joskow
Elizabeth T. Kennan
A.J.C. Smith 
Lawrence J. Lasser                  W. Nicholas ThorndikeJohn H. Mullin, III
Robert E. Patterson
WE URGE YOU TO MARK, SIGN, DATE, AND MAIL THE ENCLOSED PROXY IN
THE POSTAGE-PAID ENVELOPE PROVIDED SO YOU WILL BE REPRESENTED AT
THE MEETING.

April 12, 1996

PROXY STATEMENT

THIS DOCUMENT WILL GIVE YOU THE INFORMATION YOU NEED TO VOTE ON
THE MATTERS LISTED ON THE PREVIOUS PAGE.  MUCH OF THE INFORMATION
IN THE PROXY STATEMENT IS REQUIRED UNDER RULES OF THE SECURITIES
AND EXCHANGE COMMISSION (SEC)A.J.C. Smith
W. Thomas Stephens

We urge you to mark, sign, date, and mail the enclosed proxy in the
postage-paid envelope provided or record your voting instructions by
telephone or via the Internet so that you will be represented at the
meeting.

September 3, 2004




Pro- posal Proposal Description Affected Funds Page - --------------------------------------------------------------------------------------------------------------------------------- 1. Election of Trustees All funds 2.A. Approving an amendment Putnam Asset Allocation: Balanced Portfolio Putnam Capital Appreciation Fund to a fund's fundamental Putnam Asset Allocation: Conservative Portfolio Putnam Classic Equity Fund investment restriction Putnam Asset Allocation: Growth Portfolio Putnam Discovery Growth Fund with respect to borrowing Putnam Convertible Income-Growth Trust Putnam Equity Income Fund The George Putnam Fund of Boston Putnam Europe Equity Fund The Putnam Fund for Growth and Income Putnam Global Equity Fund Putnam Growth Opportunities Fund Putnam New Opportunities Fund Putnam Health Sciences Trust Putnam New Value Fund Putnam International Capital Opportunities Fund Putnam OTC & Emerging Growth Fund Putnam International Equity Fund Putnam Research Fund Putnam International Growth and Income Fund Putnam Utilities Growth and Income Fund Putnam International New Opportunities Fund Putnam Vista Fund Putnam Investors Fund Putnam Voyager Fund - --------------------------------------------------------------------------------------------------------------------------------- Pro- posal Proposal Description Affected Funds Page - --------------------------------------------------------------------------------------------------------------------------------- 2.B. Approving an amendment Putnam Asset Allocation: Balanced Portfolio Putnam Health Sciences Trust to a fund's fundamental Putnam Asset Allocation: Conservative Portfolio Putnam International Capital Opportunities Fund investment restriction Putnam Asset Allocation: Growth Portfolio Putnam International Equity Fund with respect to making Putnam Capital Appreciation Fund Putnam New Opportunities Fund loans Putnam Classic Equity Fund Putnam New Value Fund Putnam Convertible Income-Growth Trust Putnam OTC & Emerging Growth Fund Putnam Discovery Growth Fund Putnam Research Fund Putnam Equity Income Fund Putnam Utilities Growth and Income Fund Putnam Europe Equity Fund Putnam Vista Fund and The George Putnam Fund of Boston Putnam Voyager Fund Putnam Global Equity Fund Putnam Global Natural Resources Fund The Putnam Fund for Growth and Income Putnam Growth Opportunities Fund Putnam International Growth and Income Fund Putnam International New Opportunities Fund Putnam Investors Fund - --------------------------------------------------------------------------------------------------------------------------------- 2.C. Approving an amendment All funds to a fund's fundamental investment restriction with respect to diversification of investments - --------------------------------------------------------------------------------------------------------------------------------- Pro- posal Proposal Description Affected Funds Page - --------------------------------------------------------------------------------------------------------------------------------- 2.D. Approving an amendment Putnam Capital Opportunities Fund Putnam New Value Fund to a fund's fundamental Putnam Classic Equity Fund Putnam Research Fund investment restriction Putnam Global Natural Resources Fund Putnam Small Cap Growth Fund with respect to issuance The Putnam Fund for Growth and Income Putnam Small Cap Value Fund of senior securities Putnam International Capital Opportunities Fund Putnam Tax Smart Equity Fund Putnam International New Opportunities Fund - --------------------------------------------------------------------------------------------------------------------------------- 2.E. Approving an amendment Putnam Equity Income Fund to a fund's investment objective - --------------------------------------------------------------------------------------------------------------------------------- 3. Approval of an amendment All funds, except Putnam Tax Smart Equity Fund to a fund's Agreements and Declarations of Trust - ---------------------------------------------------------------------------------------------------------------------------------
Proxy statement This document will give you the information you need to vote on the proposals. Much of the information is required under rules of the Securities and Exchange Commission ("SEC"); SOME OF IT IS TECHNICAL. IF THERE IS ANYTHING YOU DON'T UNDERSTAND, PLEASE CONTACT US AT OUR SPECIAL TOLL-FREE NUMBER,some of it is technical. If there is anything you don't understand, please contact us at our toll-free number, 1-800-225-1581, OR CALL YOUR FINANCIAL ADVISER. WHO IS ASKING FOR MY VOTE? THE ENCLOSED PROXY IS SOLICITED BY THE TRUSTEES OF THE GEORGE PUTNAM FUND OF BOSTONor call your financial advisor. * Who is asking for your vote? The enclosed proxy is solicited by the Trustees of the Putnam funds for use at the Meeting of Shareholders of theeach fund to be held on JulyNovember 11, 1996,2004, and, if your fund's meeting is adjourned, at any later meetings, for the purposes stated in the Notice of Meeting (see previous page)pages). HOW DO YOUR FUND'S TRUSTEES RECOMMEND THAT SHAREHOLDERS VOTE ON THESE PROPOSALS?The Notice of Meeting, the proxy and the Proxy Statement are being mailed on or about September 3, 2004. * How do your fund's Trustees recommend that shareholders vote on these proposals? The Trustees recommend that you vote 1. FOR THE ELECTION OF ALL NOMINEES; 2. FOR SELECTING PRICE WATERHOUSE LLP AS THE INDEPENDENT AUDITORS OF YOUR FUND; 3.A. FOR APPROVAL TO AMEND THE FUND'S AGREEMENT AND DECLARATION OF TRUST WITH RESPECT TO DIVERSIFICATION OF INVESTMENTS; 3.B. FOR APPROVAL TO AMEND THE FUND'S AGREEMENT AND DECLARATION OF TRUST WITH RESPECT TO INVESTMENTS IN ISSUERS THAT HAVE BEEN IN OPERATION FOR LESS THAN THREE YEARS; 3.C. FOR APPROVAL TO AMEND THE FUND'S AGREEMENT AND DECLARATION OF TRUST WITH RESPECT TO THE PURCHASE OF CERTAIN ILLIQUID SECURITIES; 3.D. FOR APPROVAL TO AMEND THE FUND'S AGREEMENT AND DECLARATION OF TRUST WITH RESPECT TO INVESTMENTS IN SECURITIES OF ISSUERS IN WHICH MANAGEMENT OF THE FUND OR PUTNAM MANAGEMENT OWNS SECURITIES; 3.E. FOR APPROVAL TO AMEND THE FUND'S AGREEMENT AND DECLARATION OF TRUST WITH RESPECT TO OWNING 10% OF THE SECURITIES OF A SINGLE ISSUER; 3.F. FOR APPROVAL TO AMEND THE FUND'S FUNDAMENTAL INVESTMENT RESTRICTIONS RELATING TO INVESTMENTS IN REAL ESTATE; 3.G. FOR APPROVAL TO AMEND THE FUND'S AGREEMENT AND DECLARATION OF TRUST WITH RESPECT TO MARGIN TRANSACTIONS; 3.H. FOR APPROVAL TO ELIMINATE THE FUND'S FUNDAMENTAL INVESTMENT RESTRICTIONS WITH RESPECT TO SHORT SALES; 3.I. FOR APPROVAL TO AMEND THE FUND'S FUNDAMENTAL INVESTMENT RESTRICTION WITH RESPECT TO MAKING LOANS BY PURCHASING SECURITIES; 3.J. FOR APPROVAL TO AMEND THE FUND'S AGREEMENT AND DECLARATION OF TRUST WITH RESPECT TO MAKING LOANS THROUGH REPURCHASE AGREEMENTS AND SECURITIES LOANS; 3.K. FOR APPROVAL TO ELIMINATE THE FUND'S FUNDAMENTAL INVESTMENT RESTRICTION PROHIBITING THE FUND FROM INVESTING IN INVESTMENT COMPANIES IF PROHIBITED BY GERMAN LAW; AND 4. FOR APPROVAL OF THE NEW MANAGEMENT CONTRACT, INCREASING THE FEES PAYABLE TO PUTNAM INVESTMENT MANAGEMENT, INC. WHO IS ELIGIBLE TO VOTE?For electing your fund's nominees for Trustees; 2A. For approving an amendment to certain funds' fundamental investment restrictions with respect to borrowing; 2B. For approving an amendment to certain funds' fundamental investment restrictions with respect to making loans; 2C. For approving an amendment to certain funds' fundamental investment restrictions with respect to diversification of investments; 2D. For approving an amendment to certain funds' fundamental investment restrictions with respect to issuance of senior securities; 2E. For approving an amendment to a fund's investment objective; and 3. For approving an amendment to certain funds' Agreements and Declarations of Trust Please see the descriptions of proposals 2 and 3 beginning on page 48 for lists of the affected funds. * Who is eligible to vote? Shareholders of record of each affected fund at the close of business on April 12, 1996,August 13, 2004 are entitled to be present and to vote at the meeting or any adjourned meeting. The Notice of Meeting, the proxy, and the Proxy Statement have been mailed to shareholders of record on or about April 17, 1996. Each share is entitled to one vote. Shares represented by your duly executed proxiesproxy will be voted in accordance with shareholders'your instructions. If you sign the proxy, but don't fill in a vote, your shares will be voted in accordance with the Trustees' recommendations. If any other business is brought before theyour fund's meeting, your shares will be voted at the Trustees' discretion. THE PROPOSALS 1. ELECTION OF TRUSTEES WHO ARE THE NOMINEES FOR TRUSTEES?Shareholders of each fund vote separately with respect to each proposal other than the election of Trustees and the amendment to a trust's agreement and declaration of trust, in which case shareholders of each series of a trust vote together as a single class. The outcome of a vote affecting one fund does not affect any other fund, except where series of a trust vote together. The Proposals I. Election of Trustees * Who are the nominees for trustees? The Board Policy and Nominating Committee of the Trustees recommendsof each fund makes recommendations concerning the Trustees of that the number of Trustees be fixed at thirteenfund. The Board Policy and that you vote for the election of the nominees described below. Each nominee is currently a Trustee of your fund and of the other Putnam funds. The Nominating Committee of the Trustees consists solely of Trustees who are not "interested persons" (as defined in the Investment Company Act of 1940)1940, as amended (the "1940 Act"), of your fund or of Putnam Investment Management, Inc.,LLC, your fund's investment manager ("Putnam Management"). The Board Policy and Nominating Committee of the Trustees of each fund has fixed the number of Trustees of each fund at fourteen and recommends that you vote for the election of the nominees described below. The 14 nominees for election as Trustees at the shareholder meeting of your fund who receive the greatest number of votes from shareholders will be elected as Trustees of your fund. The nominees for Trustees and their backgrounds are shown in the table below. The table discloses each Nominee's name, date of birth, principal occupation(s) during the past five years, and other information about the nominee's professional background, including other directorships the nominee holds. For more in depth biographical information, please refer to the website of Putnam, LLC ("Putnam Investments"): www.Putnam.com. Each Trustee oversees all of the Putnam funds and serves until the election and qualification of his or her successor, or until he or she sooner dies, resigns or is removed. Each nominee other than Ms. Drucker and Messrs. Haldeman and Worley currently serve as a Trustee. The address of all of the Trustees and nominees is One Post Office Square, Boston, Massachusetts 02109. At December 31, 2003, there were 101 Putnam funds. Jameson A. Baxter (9/6/43), Trustee since 1994 [GRAPHIC OMITTED: PHOTO OF JAMESON ADKINS BAXTER [INSERT PICTURE]A. BAXTER] - -------------------------------------------- Ms. Baxter age 52, is the President of Baxter Associates, Inc., a management and financial consultingprivate investment firm whichthat she founded in 1986. During that time, she was alsoMs. Baxter serves as a Vice PresidentDirector of ASHTA Chemicals, Inc., Banta Corporation (a printing and Principaldigital imaging firm), Ryerson Tull, Inc. (a steel service corporation), Advocate Health Care, and BoardSource, formerly the National Center for Nonprofit Boards. She is Chairman Emeritus of the Regency Group, Inc.,Board of Trustees, Mount Holyoke College, having served as Chairman for five years and as a Consultant to First Boston Corporation, both of which are investment banking firms. From 1965 to 1986,board member for thirteen years. Until 2002, Ms. Baxter was a Director of Intermatic Corporation (a manufacturer of energy control products). Ms. Baxter has held various positions in investment banking and corporate finance, at First Boston. Ms. Baxter currently also serves as a Director of Banta Corporation, Avondale Federal Savings Bank,including Vice President and ASHTA Chemicals, Inc. She is also the Chairman EmeritusPrincipal of the Board of Trustees of Mount Holyoke College, having previously served as Chairman for five yearsRegency Group, and as a Board member for thirteen years; an Honorary Trustee and pastVice President of the Board of Trustees of the Emma Willard School; and Chair of the Board of Governors of Good Shepherd Hospital. Ms. BaxterConsultant to First Boston Corporation. She is a graduate of Mount Holyoke College. HANS H. ESTIN [INSERT PICTURE]Charles B. Curtis (4/27/40), Trustee since 2001 [GRAPHIC OMITTED: PHOTO OF CHARLES B. CURTIS] - -------------------------------------------- Mr. Estin, age 67,Curtis is President and Chief Operating Officer of the Nuclear Threat Initiative (a private foundation dealing with national security issues) and serves as Senior Advisor to the United Nations Foundation. Mr. Curtis is a Chartered Financial Analystmember of the Council on Foreign Relations and the ViceTrustee Advisory Council of the Applied Physics Laboratory, Johns Hopkins University. Until 2003, Mr. Curtis was a member of the Electric Power Research Institute Advisory Council and the University of Chicago Board of Governors for Argonne National Laboratory. Prior to 2002, Mr. Curtis was a Member of the Board of Directors of the Gas Technology Institute and the Board of Directors of the Environment and Natural Resources Program Steering Committee, John F. Kennedy School of Government, Harvard University. Until 2001, Mr. Curtis was a member of the Department of Defense Policy Board and Director of EG&G Technical Services, Inc. (a fossil energy research and development support company). From August 1997 to December 1999, Mr. Curtis was a Partner at Hogan & Hartson L.L.P., a Washington, D.C. law firm. Prior to May 1997, Mr. Curtis was Deputy Secretary of Energy. He served as Chairman of North American Management Corp., a registered investment adviser serving individual clientsthe Federal Energy Regulatory Commission from 1977 to 1981 and their families. Mr. Estin currently also serves as a Directorhas held positions on the staff of The Boston Company, Inc., a registered investment adviser which provides administrativethe U.S. House of Representatives, the U.S. Treasury Department, and investment management services to mutual funds and other institutional investors, and Boston Safe Deposit and Trust Company; a Corporation Member of Massachusetts General Hospital; and athe SEC. Myra R. Drucker (1/16/48) Nominee for Trustee of New England Aquarium. He previously served as the Chairman[GRAPHIC OMITTED: PHOTO OF MYRA R. DRUCKER] - ------------------------------------------- Ms. Drucker is Vice Chair of the Board of Trustees of Boston UniversitySarah Lawrence College, a Trustee of Commonfund (a not-for-profit firm specializing in asset management for educational endowments and foundations), and a member of the Investment Committee of the Kresge Foundation (a charitable trust). She is currently activealso Chair of the New York Stock Exchange (NYSE) Pension Managers Advisory Committee and a member of the Executive Committee of the Committee on Investment of Employee Benefit Assets. Until August 31, 2004, Ms. Drucker was Managing Director and a member of the Board of Directors of General Motors Asset Management and Chief Investment Officer of General Motors Trust Bank. Ms. Drucker also served as a member of the NYSE Corporate Accountability and Listing Standards Committee and the NYSE/NASD IPO Advisory Committee. Prior to joining General Motors Asset Management in 2001, Ms. Drucker held various other civic associations, includingexecutive positions in the Boys & Girls Clubsinvestment management industry. Ms. Drucker served as Chief Investment Officer of Boston, Inc. Mr. Estin isXerox Corporation (a technology and service company in the document industry), where she was responsible for the investment of the company's pension assets. Ms. Drucker was also Staff Vice President and Director of Trust Investments for International Paper (a paper, paper distribution, packaging and forest products company) and previously served as Manager of Trust Investments for Xerox Corporation. Ms. Drucker received a graduate of HarvardB.A. degree in Literature and Psychology from Sarah Lawrence College and holds honorary doctorates from Merrimack Collegepursued graduate studies in economics, statistics and Bostonportfolio theory at Temple University. John A. Hill (1/31/42), Trustee since 1985 and Chairman since 2000 [GRAPHIC OMITTED: PHOTO OF JOHN A. HILL [INSERT PICTURE]HILL] - --------------------------------------- Mr. Hill age 54, is theVice Chairman and Managing Director of First Reserve Corporation, a registered investment adviser investingprivate equity buyout firm that specializes in companiesenergy investments in the world-widediversified worldwide energy industry on behalfindustry. Mr. Hill is a Director of institutional investors.Devon Energy Corporation, TransMontaigne Oil Company, Continuum Health Partners of New York, and various private companies controlled by First Reserve Corporation, as well as a Trustee of TH Lee, Putnam Investment Trust (a closed-end investment company advised by an affiliate of Putnam Management). He is also a Trustee of Sarah Lawrence College. Prior to acquiring First Reserve Corporation in 1983, Mr. Hill held executive positions in investment banking and investment management with several investment advisory firms and held various positions with the Federalfederal government, including Deputy Associate Director of the Office of Management and Budget, and Deputy AdministratorDirector of the Federal Energy Administration. Mr. Hill currently also serves as a Director of Snyder Oil Corporation, an exploration and production company which he founded, Maverick Tube Corporation, a manufacturer of structural steel, pipe and well casings, PetroCorp Incorporated, an exploration and production company, Weatherford Enterra, Inc., an oil field service company, various private companies controlled by First Reserve Corporation, and various First Reserve Funds. He is also a Member of the Board of Advisors of Fund Directions. He is currently active in various business associations, including the Economic Club of New York, and lectures on energy issues in the United States and Europe. Mr. Hill holds a B.A. degree in Economics from Southern Methodist University and pursued graduate studies there as a Woodrow Wilson Fellow. Ronald J. Jackson (12/17/43), Trustee since 1996 [GRAPHIC OMITTED: PHOTO OF RONALD J. JACKSON] - -------------------------------------------- Mr. Jackson is a graduate of Southern Methodist University. ELIZABETH T. KENNAN [INSERT PICTURE] Ms. Kennan, age 58,private investor. Mr. Jackson is President Emeritusof the Kathleen and ProfessorRonald J. Jackson Foundation (a charitable trust). He is also a member of Mount Holyoke College. From 1978 through June 1995, she was Presidentthe Board of Mount Holyoke College. From 1966 to 1978, she was on the facultyOverseers of Catholic University, where she taught historyWGBH (a public television and published numerous articles. Ms. Kennan currently also servesradio station) as well as a Director of NYNEX Corporation, a telecommunications company, Northeast Utilities, the Kentucky Home Life Insurance Companies, and Talbots, a women's clothing retailer. She also serves as a Member of The Folger Shakespeare Library Committee. She is currently active in various educational and civic associations, including the Committee on Economic Development and the Council on Foreign Relations. Ms. Kennan is a graduate of Mount Holyoke College, the University of Washington and St. Hilda College at Oxford University and holds several honorary doctorates. LAWRENCE J. LASSER* [INSERT PICTURE] Mr. Lasser, age 53, is the Vice President of your fund and the other Putnam funds. He has been the President, Chief Executive Officer and a Director of Putnam Investments, Inc. and Putnam Management since 1985, having begun his career there in 1969. Mr. Lasser currently also serves as a Director of Marsh & McLennan Companies, Inc., the parent company of Putnam Management, and INROADS/Central New England, Inc., a job market internship program for minority high school and college students. He is a Membermember of the Board of Overseers of the MuseumPeabody Essex Museum. Mr. Jackson is the former Chairman, President, and Chief Executive Officer of Science,Fisher-Price, Inc. (a major toy manufacturer), from which he retired in 1993. He previously served as President and Chief Executive Officer of Stride-Rite, Inc. (a manufacturer and distributor of footwear) and of Kenner Parker Toys, Inc. (a major toy and game manufacturer). Mr. Jackson was President of Talbots, Inc. (a distributor of women's apparel) and has held financial and marketing positions with General Mills, Inc. and Parker Brothers (a toy and game company). Mr. Jackson is a graduate of the MuseumUniversity of Fine ArtsMichigan Business School. Paul L. Joskow (6/30/47), Trustee since 1997 [GRAPHIC OMITTED: PHOTO OF PAUL L. JOSKOW] - ----------------------------------------- Dr. Joskow is the Elizabeth and James Killian Professor of Economics and Management, and Director of the Isabella Stewart Gardner MuseumCenter for Energy and Environmental Policy Research at the Massachusetts Institute of Technology. Dr. Joskow serves as a Director of National Grid Transco (a UK-based holding company with interests in Boston.electric and gas transmission and distribution, and telecommunications infrastructure) and TransCanada Corporation (an energy company focused on natural gas transmission and power services). He also serves on the board of the Whitehead Institute for Biomedical Research (a non-profit research institution) and has been President of the Yale University Council since 1993. Prior to February 2002, he was a Director of State Farm Indemnity Company (an automobile insurance company) and prior to March 2000 he was a Director of New England Electric System (a public utility holding company). Dr. Joskow has published five books and numerous articles on topics in industrial organization, government regulation of industry, and competition policy. He is alsoactive in industry restructuring, environmental, energy, competition, and privatization policies -- serving as an advisor to governments and corporations worldwide. Dr. Joskow holds a Ph.D. and M. Phil from Yale University and B.A. from Cornell University. Elizabeth T. Kennan (2/25/38), Trustee since 1992 [GRAPHIC OMITTED: PHOTO OF ELIZABETH T. KENNAN] - ---------------------------------------------- Dr. Kennan is a Partner of Cambus-Kenneth Farm (thoroughbred horse and cattle breeding). She is President Emeritus of Mount Holyoke College. Dr. Kennan served as Chairman and is now Lead Director of Northeast Utilities and is a Director of Talbots, Inc. She has served as Director on a number of other boards, including Bell Atlantic, Chastain Real Estate, Shawmut Bank, Berkshire Life Insurance, and Kentucky Home Life Insurance. She is a Trustee of the Beth Israel HospitalNational Trust for Historic Preservation, of Centre College and Buckingham, Browneof Midway College in Midway, Kentucky. She is also a member of The Trustees of Reservations. Dr. Kennan has served on the oversight committee of the Folger Shakespeare Library, as President of Five Colleges Incorporated, as a Trustee of Notre Dame University, and Nichols School.is active in various educational and civic associations. As a member of the faculty of Catholic University for twelve years, until 1978, Dr. Kennan directed the post-doctoral program in Patristic and Medieval Studies, taught history, and published numerous articles. Dr. Kennan holds a Ph.D. from the University of Washington in Seattle, an M.S. from St. Hilda's College at Oxford University, and an A.B. from Mount Holyoke College. She holds several honorary doctorates. John H. Mullin, III (6/15/41), Trustee since 1997 [GRAPHIC OMITTED: PHOTO OF JOHN H. MULLIN, III] - ---------------------------------------------- Mr. LasserMullin is the Chairman and CEO of Ridgeway Farm (a limited liability company engaged in timber and farming). Mr. Mullin serves as a Director of Alex. Brown Realty, Inc., The Liberty Corporation (a broadcasting company), Progress Energy, Inc. (a utility company, formerly known as Carolina Power & Light), and Sonoco Products, Inc. (a packaging company). Mr. Mullin is Trustee Emeritus of Washington & Lee University, where he served as Chairman of the Investment Committee. Prior to May 2001, he was a Director of Graphic Packaging International Corp. Mr. Mullin also served as a Director of Dillon, Read & Co., Inc. until October 1997 and The Ryland Group, Inc. until January 1998. Mr. Mullin is a graduate of Antioch CollegeWashington & Lee University and Harvard Business School.The Wharton Graduate School, University of Pennsylvania. Robert E. Patterson (3/15/45), Trustee since 1984 [GRAPHIC OMITTED: PHOTO OF ROBERT E. PATTERSON [INSERT PICTURE]PATTERSON] - ---------------------------------------------- Mr. Patterson age 51, is the Executive Vice President and Director of AcquisitionsSenior Partner of Cabot Partners Limited Partnership, a registered investment adviser which manages real estate investments for institutional investors. Prior to 1990, he was the Executive Vice PresidentProperties, L.P. and Chairman of Cabot Cabot & Forbes Realty Advisors,Properties, Inc., the predecessor company of Cabot Partners. Prior to that, he was a Senior Vice President of the Beal Companies, a real estate management, investment and development company. He has also worked as an attorney and held various positions in state government, including the founding Executive Director of the Massachusetts Industrial Finance Agency. Mr. Patterson currently also serves as Chairman of the Joslin Diabetes Center and as a Director of Brandywine Trust Company. Prior to June 2003, he was a Trustee of Sea Education Association. Prior to December 2001, he was President and Trustee of Cabot Industrial Trust (a publicly traded real estate investment trust), prior to February 1998, he was Executive Vice President and Director of Acquisitions of Cabot Partners Limited Partnership (a registered investment advisor involved in institutional real estate investments); and prior to 1990, he served as Executive Vice President of Cabot, Cabot & Forbes Realty Advisors, Inc. (the predecessor company of Cabot Partners) and as a Senior Vice President of the Beal Companies (a real estate management, investment, and development firm). Mr. Patterson practiced law and held various positions in state government, and was the founding Executive Director of the Massachusetts Industrial Finance Agency. Mr. Patterson is a graduate of Harvard College and Harvard Law School. DONALD S. PERKINS* [INSERT PICTURE]W. Thomas Stephens (9/2/42), Trustee since 1997 [GRAPHIC OMITTED: PHOTO OF W. THOMAS STEPHENS] - --------------------------------------------- Mr. Perkins, age 69, is the retiredStephens serves on a number of corporate boards. Mr. Stephens serves as a Director of Xcel Energy Incorporated (a public utility company), TransCanada Pipelines Limited, Norske Canada, Inc. (a paper manufacturer), and Qwest Communications. Until 2003, Mr. Stephens was a Director of Mail-Well, Inc. (a diversified printing company). He served as Chairman of Mail-Well until 2001 and as CEO of MacMillan-Bloedel, Ltd. (a forest products company) until 1999. Prior to 1996, Mr. Stephens was Chairman and Chief Executive Officer of Johns Manville Corporation. He holds B.S. and M.S. degrees from the BoardUniversity of Jewel Companies, Inc.,Arkansas. Richard B. Worley (11/15/45) Nominee for Trustee [GRAPHIC OMITTED: PHOTO OF RICHARD B. WORLEY] - ------------------------------------------- Mr. Worley is Managing Partner of Permit Capital LLC, an investment management firm. Mr. Worley serves as a diversified retailer, where among other roles hedirector of [ ]. Mr. Worley is also on the Executive Committee of the University of Pennsylvania Medical Center, is a Trustee of The Robert Wood Johnson Foundation (a philanthropic organization devoted to health care issues) and is a Director of The Colonial Williamsburg Foundation (a historical preservation organization). Mr. Worley also serves on the investment committees of Mount Holyoke College and World Wildlife Fund (a wildlife conservation organization). Prior to joining Permit Capital LLC in 2002, Mr. Worley served as Chief Strategic Officer of Morgan Stanley Investment Management. He previously served as President, Chief Executive Officer and Chief Investment Officer of Morgan Stanley Dean Witter Investment Management and as a Managing Director of Morgan Stanley, a financial services firm. Mr. Worley also was the Chairman of Miller Anderson & Sherrerd, an investment management firm. Mr. Worley holds a B.S. degree from University of Tennessee and pursued graduate studies in economics at the University of Texas. * Interested trustees Charles E. Haldeman Jr.* (10/29/48), Nominee for Trustee [GRAPHIC OMITTED: PHOTO OF CHARLES E. HALDEMAN JR.] - ------------------------------------------- Mr. Haldeman is President and Chief Executive Officer of Putnam Investments. He is a member of Putnam Investments' Executive Board from 1965of Directors and Advisory Counsel. [Insert any outside board service.] Prior to 1980. He currently also serves as a Director of various other public corporations, including American Telephone & Telegraph Company, AON Corp., an insurance company, Cummins Engine Company, Inc., an engine and power generator equipment manufacturer and assembler, Current Assets L.L.C., a corporation providing financial staffing services, Illinova and Illinois Power Co., Inland Steel Industries, Inc., LaSalle Street Fund, Inc., a real estatejoining Putnam Investments in 2002, Mr. Haldeman held executive positions in the investment trust, Springs Industries, Inc., a textile manufacturer, and Time Warner, Inc., one of the nation's largest media conglomerates. Hemanagement industry. Mr. Haldeman previously served as Chief Executive Officer of Delaware Investments and President & Chief Operating Officer of United Asset Management. Mr. Haldeman was also a partner and director of several other major public corporations, including Corning Glass Works, Eastman Kodak Company, Firestone TireCooke & Rubber Company and Kmart Corporation.Bieler, Inc. (an investment management firm). Mr. Perkins currently also serves as a Trustee and Vice Chairman of Northwestern University and as a Trustee of the Hospital Research and Education Trust. He is currently active in various civic and business associations, including the Business Council and the Civic Committee of the Commercial Club of Chicago, of which he is the founding Chairman. Mr. PerkinsHaldeman is a graduate of Yale UniversityDartmouth College, Harvard Law School and Harvard Business School and holds an honorary Doctorate from Loyola University of Chicago. WILLIAM F. POUNDS [INSERT PICTURE] Dr. Pounds, age 68, is the Vice Chairman of your fund and of the other Putnam funds. He has been a Professor of Management at the Alfred P. Sloan School of Management at the Massachusetts Institute of Technology since 1961 and served as Dean of that School from 1966 to 1980. He previously served as Senior Advisor to the Rockefeller Family and Associates and was a past Chairman of Rockefeller & Co., Inc., a registered investment adviser which manages Rockefeller family assets, and Rockefeller Trust Company. Dr. Pounds currently also serves as a Director of IDEXX Laboratories, Inc., M/A-COM, Inc., EG&G, Inc., Perseptive Biosystems, Inc., Management Sciences For Health, Inc. and Sun Company, Inc. HeSchool. Mr. Haldeman is also a Chartered Financial Analyst (CFA) charterholder. George Putnam III* (8/10/51), Trustee of the Museum of Fine Arts in Boston; an Overseer of WGBH Educational Foundation,since 1984 and a Fellow of The American Academy of Arts and Sciences. He previously served as a director of Fisher-Price, Inc., a major toy manufacturer and General Mills, Inc., a major manufacturer and distributor of food products. Dr. Pounds is a graduate of Carnegie Mellon University.President since 2000 [GRAPHIC OMITTED: PHOTO OF GEORGE PUTNAM* [INSERT PICTURE]PUTNAM III] - -------------------------------------------- Mr. Putnam age 69, is the Chairman and President of your fund and of the other Putnam funds. He is the Chairman and a Director of Putnam Management and Putnam Mutual Funds Corp. and a director of Marsh & McLennan, their parent company. Mr. Putnam is the son of the founder of the Putnam funds and Putnam Management and has been employed in various capacities by Putnam Management since 1951, including Chief Executive Officer from 1961 to 1973. He is a former Overseer and Treasurer of Harvard University; a past Chairman of the Harvard Management Company; and a Trustee Emeritus of Wellesley College and Bradford College. Mr. Putnam currently also serves as a Director of The Boston Company, Inc., Boston Safe Deposit and Trust Company, Freeport- McMoRan, Inc., Freeport Copper and Gold, Inc., McMoRan Oil and Gas, Inc., mining and natural resources companies, General Mills, Inc., a major manufacturer of food products, Houghton Mifflin Company, a major publishing company, and Rockefeller Group, Inc., a real estate manager. He is also a Trustee of Massachusetts General Hospital, McLean Hospital, Vincent Memorial Hospital, WGBH Educational Foundation, the Museum of Fine Arts and the Museum of Science in Boston; the New England Aquarium, an Overseer of Northeastern University; and a Fellow of The American Academy of Arts and Sciences. Mr. Putnam is a graduate of Harvard College and Harvard Business School and holds honorary doctorates from Bates College and Harvard University. GEORGE PUTNAM, III* [INSERT PICTURE] Mr. Putnam, age 44, is the President of New Generation Research, Inc., a (a publisher of financial advisory and other research services relating to bankruptservices), and distressed companies, andof New Generation Advisers, Inc., a (a registered investment adviser which provides adviceadvisor to private funds specializing in investments in such companies. Prior to foundingfunds). Mr. Putnam founded the New Generation companies in 1985,1986. Mr. Putnam was an attorney with the Philadelphia law firm Dechert Price & Rhoads. Mr. Putnam currently also serves asis a Director of The World Environment Center and the Massachusetts Audubon Society.Boston Family Office, LLC (a registered investment advisor). He is alsoa Trustee of St. Mark's School, Shore Country Day School, and until 2002 was a Trustee of the Sea Education Association and St. Mark's School andAssociation. Mr. Putnam previously worked as an Overseerattorney with the law firm of the New England Medical Center. Mr. PutnamDechert LLP (formerly known as Dechert Price & Rhoads) in Philadelphia. He is a graduate of Harvard College, Harvard Business School, and Harvard Law School. ELI SHAPIRO [INSERT PICTURE] Dr. Shapiro, age 79, is the Alfred P. Sloan Professor of Management, Emeritus at the Alfred P. Sloan School of Management at the Massachusetts Institute of Technology, having served on the faculty of the Sloan School for eighteen years. He previously was also on the faculty of Harvard Business School, The University of Chicago School of Business and Brooklyn College. During his academic career, Dr. Shapiro authored numerous publications concerning finance and related topics. He previously served as the President and Chief Executive of the National Bureau of Economic Research and also provided economic and financial consulting services to various clients. Dr. Shapiro currently serves as a Director of Nomura Dividend Income Fund, Inc.A.J.C. Smith* (4/13/34), a privately held registered investment company managed by Putnam Management. He is also a past Director of many companies, including Reece Corporation, a sewing machine manufacturer, Commonwealth Mortgage, Dexter Corporation, a manufacturer of plastics and related products, Avis Corporation, a car rental company, Connecticut Bank and Trust Company, Connecticut National Gas Corporation, the Federal Home Loan Bank of Boston, where he served as Chairman from 1977 to 1989, Travelers' Corporation, an insurance company, and Norlin Corporation, a musical instrument manufacturer; and a past Trustee of Mount Holyoke College and the Putnam funds (from 1984 to 1989). Dr. Shapiro is a Fellow of The American Academy of Arts and Sciences and is active in various professional and civic associations, including the American Economic Association, the American Finance Association and the Council on Foreign Relations. Dr. Shapiro is a graduate of Brooklyn College and Columbia University.since 1986 [GRAPHIC OMITTED: PHOTO OF A.J.C. SMITH* [INSERT PICTURE]SMITH] - --------------------------------------- Mr. Smith age 62, is the Chairman of Putnam Investments and Chief Executive OfficerDirector of and Consultant to Marsh & McLennan Companies, Inc. He has been employed by Marsh & McLennan and related companies in various capacities since 1961. Mr. Smith is also a Director of the Trident Corp., and he (a limited partnership with over thirty institutional investors). He is also serves as a Trustee of the Carnegie Hall Society, the Educational Broadcasting Corporation, and the National Museums of Scotland. He is Chairman of the Central Park Conservancy The American Institute for Chartered Property Underwriters, and is a Founder of the Museum of Scotland Society. He was educated in Scotland and is a Fellow of the Faculty of Actuaries in Edinburgh, a Fellow of the Canadian Institute of Actuaries, a Fellow of the Conference of Actuaries in Public Practice, an Associate of the Society of Actuaries, a Member of the American AcademyBoard of Actuaries,Overseers of the International Actuarial AssociationJoan and the International AssociationSanford I. Weill Graduate School of Consulting Actuaries. W. NICHOLAS THORNDIKE** [INSERT PICTURE] Mr. Thorndike, age 63, serves as a DirectorMedical Sciences of various corporations and charitable organizations, including Data General Corporation, a computer and high technology company, Bradley Real Estate, Inc., a real estate investment firm, Providence Journal Co., a newspaper publisher and owner of television stations, and Courier Corporation, a book binding and printing company. He is also a Trustee of Eastern Utilities Associates, Massachusetts General Hospital, where he previously served as chairman and president, and NortheasternCornell University. Prior to December 1988, heMay 2000 and November 1999, Mr. Smith was the Chairman of the Board and Managing Partner of Wellington Management Company/Thorndike, Doran, Paine & Lewis, a registered investment adviser which manages mutual funds and institutional assets. He also previously served as a Trustee of the Wellington Group of Funds (now The Vanguard Group) and was the Chairman and a DirectorCEO, respectively, of Ivest Fund,Marsh & McLennan Companies, Inc. Mr. Thorndike is a graduate of Harvard College. - ---------------------------- * Nominees who are or may be deemed to be "interested persons" (as defined in the Investment Company Act1940 Act) of 1940) of youra fund, Putnam Management, and Putnam Mutual Funds Corp.Retail Management Limited Partnership ("Putnam Mutual Funds"Retail Management"), or Marsh & McLennan Companies, Inc., the principal underwriter for all the open-end Putnam funds and an affiliateparent company of Putnam Management.Investments and its affiliated companies. Messrs. Haldeman, Putnam, Lasser, and Smith are deemed "interested persons" by virtue of their positions as officers or shareholders of youreach fund, or directors of Putnam Management, Putnam Mutual Funds,Retail Management, or Marsh & McLennan Companies, Inc., the parent company Mr. Haldeman is President and Chief Executive Officer of Putnam Management and Putnam Mutual Funds.Investments. Mr. George Putnam, III is the President of each of the funds. Mr. Putnam's son,Smith is also an "interested person"the Chairman of your fund, Putnam Management,Investments and Putnam Mutual Funds. Mr. Perkins may be deemed to be an "interested person" of your fund because of his serviceserves as a directorDirector of a certain publicly held company that includes registered broker-dealer firms among its subsidiaries. Neither your fund nor any of the other Putnam funds currently engages in any transactions with such firms except that certain of such firms act as dealers in the retail sale of shares of certain Putnam funds in the ordinary course of their business.and Consultant to Marsh & McLennan Companies, Inc. Ms. Drucker was nominated by [ ]. Mr. Worley was nominated by [ ]. Mr. Haldeman was nominated by [ ]. The balance of the nominees are not "interested persons." ** In February 1994 Mr. Thorndike accepted appointment as a successor trustee of certain private trusts in which he has no beneficial interest. At that time he also became Chairman of the Board of two privately owned corporations controlled by such trusts, serving in that capacity until October 1994. These corporations filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in August 1994. Except as indicated above, the principal occupations and business experience of the nominees for the last five years have been with the employers indicated, although in some cases they have held different positions with those employers. Except for Dr. Shapiro and Ms. Baxter, all the nominees were elected by the shareholders in September 1993. Ms. Baxter and Dr. Shapiro were elected by the other Trustees in January 1994 and April 1995, respectively. As indicated above, Dr. Shapiro also previously served as a Trustee of the Putnam funds from 1984 to 1989. The 1314 nominees for election as Trustees at the shareholder meeting of your fund who receive the greatest number of votes will be elected as Trustees of your fund. The current Trustees serve until their successors are elected and qualified. Each of the nominees has agreed to serve as a Trustee if elected. If any of the nominees is unavailable for election at the time of the meeting, which is not anticipated, the Trustees may vote for other nominees at their discretion, or the Trustees may recommend that the shareholders fix the number of Trustees at lessfewer than 1314 for your fund. WHAT ARE THE TRUSTEES' RESPONSIBILITIES?* What are the trustees' responsibilities? Your fund's Trustees are responsible for the general oversight of your fund's businessaffairs and for assuring that your fund is managed in the best interests of its shareholders. The Trustees periodicallyregularly review your fund's investment performance as well as the quality of other services provided to your fund and its shareholders by Putnam Management and its affiliates, including administration, distribution, custody, distribution and investorshareholder servicing. At least annually, the Trustees review and evaluate the fees and operating expenses paid to Putnam Management and its affiliatesby your fund for these services and the overall level of your fund's operating expenses.negotiate changes that they deem appropriate. In carrying out these responsibilities, the Trustees are assisted by an independent administrative staff and by your fund's independent auditors, independent counsel and legalother experts as appropriate, selected by and responsible to the Trustees. Your fund's Trustees have determined that the efficient conduct of your fund's affairs makes it desirable to delegate responsibility for certain specific matters to committees of the board. Certain committees (the Executive Committee, Distributions Committee, and Audit and Pricing Committee) are authorized to act for the Trustees as specified in their charters. The other committees review and evaluate matters specified in their charters and make recommendations to the Trustees as they deem appropriate. Each committee may utilize the resources of your fund's independent staff, counsel whichand auditors as well as other experts. The committees meet as often as necessary, either in conjunction with regular meetings of the Trustees or otherwise. The membership and chairperson of each committee are selectedappointed by the Trustees upon recommendation of the Board Policy and Nominating Committee. Audit and Pricing Committee. The Audit and Pricing Committee provides oversight on matters relating to the preparation of the funds' financial statements, compliance matters and Code of Ethics issues. This oversight is discharged by regularly meeting with management and the funds' independent auditors and keeping current on industry developments. Duties of this Committee also include the review and evaluation of all matters and relationships pertaining to the funds' independent auditors, including their independence. The members of the Audit and Pricing Committee of your fund include only Trustees who are not "interested persons" of the fund or Putnam Management (as such term is defined in the 1940 Act). The Committee also reviews the funds' policies and procedures for achieving accurate and timely pricing of the funds' shares, including oversight of fair value determinations of individual securities made by Putnam Management or other designated agents of the funds. The Committee oversees compliance by money market funds with Rule 2a-7, interfund transactions pursuant to Rule 17a-7, and the correction of occasional pricing errors. The Committee also receives reports regarding the liquidity of portfolio securities. The Trustees have adopted a written charter for the Audit and Pricing Committee. The Committee currently consists of Drs. Joskow (Chairperson) and Kennan and Messrs. Patterson and Stephens. Board Policy and Nominating Committee. The Board Policy and Nominating Committee reviews policy matters pertaining to the operations of the Board of Trustees and its committees, the compensation of the Trustees and their staff, and the conduct of legal affairs for the Putnam funds. The Committee also oversees the voting of proxies associated with portfolio investments of the Putnam funds, with the goal of ensuring that these proxies are voted in the best interest of the fund's shareholders. The Committee evaluates and recommends all candidates for election as Trustees and recommends the appointment of members and chairs of each board committee. The Committee also identifies prospective nominees for election as trustee by considering individuals that come to its attention through the recommendation of current Trustees, Putnam Management or shareholders. Candidates properly submitted by shareholders (as described below) will be considered and evaluated on the same basis as candidates recommended by other sources. The Committee may, but is not required to, engage a third-party professional search firm to assist it in identifying and evaluating potential nominees. When evaluating a potential candidate for membership on the Board of Trustees, the Board Policy and Nominating Committee considers the skills and characteristics that it feels would most benefit the Putnam funds at the time the evaluation is made. The Committee may take into account a wide variety of attributes in considering potential trustee candidates, including, but not limited to: (i) availability and commitment of a candidate to attend meetings and perform his or her responsibilities to the Board of Trustees, (ii) other board experience, (iii) relevant industry and related experience, (iv) educational background, (v) financial expertise, (vi) an assessment of the candidate's ability, judgment and expertise, (vii) an assessment of the perceived needs of the Board of Trustees and its committees at that point in time and (viii) overall Board of Trustees composition. In connection with this evaluation, the Committee will determine whether to interview prospective nominees, and, if warranted, one or more members of the Committee, and other Trustees and representatives of the funds, as appropriate, will interview prospective nominees in person or by telephone. Once this evaluation is completed, the Committee recommends such candidates as it determines appropriate to the independent Trustees for nomination, and the independent Trustees select the nominees after considering the recommendation of the Committee. The Board Policy and Nominating Committee will consider nominees for trustee recommended by shareholders of a fund provided shareholders submit their recommendations by the date disclosed in the paragraph entitled "Date for receipt of shareholders' proposals for subsequent meeting of shareholders," and provided the shareholders' recommendations otherwise comply with applicable securities laws, including Rule 14a-8 under the Securities Exchange Act of 1934, as amended (the "1934 Act"). The Committee consists only of Trustees who are not "interested persons" of your fund or Putnam Management (as such term is defined in the 1940 Act). The Trustees have adopted a written charter for the Board Policy and Nominating Committee, a copy of which is attached to this proxy statement as Exhibit A. The Board Policy and Nominating Committee currently consists of Dr. Kennan (Chairperson), Ms. Baxter and Messrs. Hill, Mullin and Patterson. Brokerage and Custody Committee. The Brokerage and Custody Committee reviews the policies and procedures of the funds regarding the execution of portfolio transactions for the funds, including policies regarding the allocation of brokerage commissions and soft dollar credits. The Committee reviews periodic reports regarding the funds' activities involving derivative securities, and reviews and evaluates matters relating to the funds' custody arrangements. The Committee currently consists of Messrs. Jackson (Chairperson), Curtis, and Mullin, and Ms. Baxter. Communication, Service and Marketing Committee. This Committee examines the quality, cost and levels of services provided to the shareholders of the Putnam funds. The Committee also reviews communications sent from the funds to their shareholders, including shareholder reports, prospectuses, newsletters and other materials. In addition, the Committee oversees marketing and sales communications of the funds' distributor. The Committee currently consists of Messrs. Putnam (Chairperson), Smith, and Stephens, and Dr. Joskow. Contract Committee. The Contract Committee reviews and evaluates, at least annually, all arrangements pertaining to (i) the engagement of Putnam Management and its affiliates. DO THE TRUSTEES HAVEaffiliates to provide services to the funds, (ii) the expenditure of the funds' assets for distribution purposes pursuant to the Distribution Plans of the open-end funds, and (iii) the engagement of other persons to provide material services to the funds, including in particular those instances where the cost of services is shared between the funds and Putnam Management and its affiliates or where Putnam Management or its affiliates have a material interest. The Committee recommends to the Trustees such changes in arrangements as it deems appropriate. The Committee also reviews the conversion of Class B shares into Class A STAKE IN YOUR FUND?shares of the open-end funds in accordance with procedures approved by the Trustees. After review and evaluation, the Committee recommends to the Trustees the proposed organization of new Fund products and proposed structural changes to existing funds. The Committee consists only of Trustees who are not "interested persons" of your fund or Putnam Management ( as such term is defined in the 1940 Act). The Committee currently consists of Ms. Baxter (Chairperson), and Messrs. Curtis, Jackson, and Mullin. Distributions Committee. This Committee oversees all fund distributions and approves the amount and timing of distributions paid by all the funds to the shareholders when the Trustees are not in session. The Committee also meets regularly with representatives of Putnam Management and its affiliates to review distribution levels and the funds' distribution policies. The Committee currently consists of Messrs. Patterson (Chairperson) and Jackson, and Dr. Joskow. Executive Committee. The functions of the Executive Committee are twofold. The first is to ensure that the funds' business may be conducted at times when it is not feasible to convene a meeting of the Trustees or for the Trustees to act by written consent. The Committee may exercise any or all of the power and authority of the Trustees when the Trustees are not in session. The second is to establish annual and ongoing goals, objectives and priorities for the Board of Trustees and to ensure coordination of all efforts between the Trustees and Putnam Management and its affiliates on behalf of the shareholders of the Putnam funds. The Committee currently consists of Messrs. Hill (Chairperson), Jackson, and Putnam, Dr. Joskow, and Ms. Baxter. Investment Oversight Committees. These Committees regularly meet with investment personnel of Putnam Management to review the investment performance and strategies of the Putnam funds in light of their stated investment objectives and policies. Investment Oversight Committee A currently consists of Ms. Baxter (Acting Chairperson) and Mr. Smith. Investment Oversight Committee B currently consists of Messrs. Curtis (Chairperson) and, Hill and Stephens. Investment Committee C currently consists of Messrs. Mullin (Chairperson) and Putnam, and Dr. Kennan. Investment Oversight Committee D currently consists of Messrs. Patterson (Chairperson), Jackson and Joskow. The 1940 Act and the rules and regulations promulgated thereunder require that your fund have a minimum proportion of trustees who are not affiliated in any way with your fund's investment manager, principal underwriter or any broker-dealer. These independent Trustees must vote separately to approve all financial arrangements and other agreements with your fund's investment manager and other affiliated parties. The role of independent trustees has been characterized as that of a "watchdog" charged with oversight to protect shareholders' interests against overreaching and abuse by those who are in a position to control or influence a fund. Your fund's independent Trustees meet regularly as a group in executive session. Eleven of the Fourteen nominees for election as Trustee would be independent Trustees. * How large a stake do the Trustees and nominees have in the Putnam funds? The Trustees believe it is important that each Trustee should have a significant investment in the Putnam funds. The Trustees allocate their investments among the more than 99 Putnam funds based on their own investment needs. The Trustees' aggregate investments in the Putnam funds total over $ million. The table below listsshows the number of shares beneficially owned by each current Trustee and nominee and the value of each Trustee's current investmentsand each nominee's holdings in theeach fund and in all of the Putnam funds as a group. SHARE OWNERSHIP BY TRUSTEES YEAR FIRST NUMBER OF ELECTED AS NUMBER OF SHARES OF TRUSTEE OF SHARES OF THE ALL PUTNAM THE PUTNAM FUND OWNED FUNDS OWNED TRUSTEES FUNDS AS OF 3/15/96* AS OF 3/15/96** - ------------------------------------------------------------------------------ Jameson A. Baxter 1994 Hans H. Estin 1972 John A. Hill 1985 Elizabeth T. Kennan 1992 Lawrence J. Lasser 1992 Robert E. Patterson 1984 Donald S. Perkins 1982 William F. Pounds 1971 George Putnam 1957 George Putnam, III 1984 Eli Shapiro 1995+ A.J.C. Smith 1986 W. Nicholas Thorndike 1992 - ------------------------------------------------------------------------------- * Except as noted below, each Trustee has sole investment power and sole voting power with respect to his or her sharesof June 30, 2004.
TRUSTEE HOLDINGS TABLE Dollar Range Shares Dollar Range Shares Dollar Range Shares of Shares Beneficially of Shares Beneficially of Shares Beneficially Owned Owned Owned Owned Owned Owned - --------------------------------------------------------------------------------------------------------------------------------- Putnam Asset Allocation: Putnam Asset Allocation: Putnam Asset Allocation: Trustees/Nominees Balanced Portfolio Conservative Portfolio Growth Portfolio - --------------------------------------------------------------------------------------------------------------------------------- Jameson A. Baxter $1-$10,000 180.145 $1-$10,000 190.105 $1-$10,000 355.477 - --------------------------------------------------------------------------------------------------------------------------------- Charles B. Curtis $1-$10,000 112.712 $1-$10,000 133.775 $1-$10,000 113.244 - --------------------------------------------------------------------------------------------------------------------------------- Myra R. Drucker - --------------------------------------------------------------------------------------------------------------------------------- Charles E. Haldeman, Jr. $10,001-$50,000 1459.542 $10,001-$50,000 1195.508 $10,001-$50,000 1019.417 - --------------------------------------------------------------------------------------------------------------------------------- John A. Hill Over $100,000 20906.944 $1-$10,000 446.935 $1-$10,000 442.089 - --------------------------------------------------------------------------------------------------------------------------------- Ronald J. Jackson $1-$10,000 333.567 $1-$10,000 153.456 $1-$10,000 820.551 - --------------------------------------------------------------------------------------------------------------------------------- Paul L. Joskow $10,001-$50,000 1783.22 $1-$10,000 230.962 $1-$10,000 875.678 - --------------------------------------------------------------------------------------------------------------------------------- Elizabeth T. Kennan $1-$10,000 335.530 $1-$10,000 321.669 $1-$10,000 455.450 - --------------------------------------------------------------------------------------------------------------------------------- John H. Mullin, III $1-$10,000 327.998 $1-$10,000 382.184 $1-$10,000 319.132 - --------------------------------------------------------------------------------------------------------------------------------- Robert E. Patterson $10,001-$50,000 1124.534 $10,001-$50,000 1147.178 $10,001-$50,000 1144.164 - --------------------------------------------------------------------------------------------------------------------------------- George Putnam, III $10,001-$50,000 1128.658 $10,001-$50,000 1147.178 $10,001-$50,000 1156.813 - --------------------------------------------------------------------------------------------------------------------------------- A.J.C. Smith $1-$10,000 170.336 $1-$10,000 172.664 $1-$10,000 178.221 - --------------------------------------------------------------------------------------------------------------------------------- W. Thomas Stephens Over $100,000 89673.064 $10,001-$50,000 4700.348 $1-$10,000 100.000 - --------------------------------------------------------------------------------------------------------------------------------- Richard B. Worley - --------------------------------------------------------------------------------------------------------------------------------- Dollar Range Shares Dollar Range Shares Dollar Range Shares of Shares Beneficially of Shares Beneficially of Shares Beneficially Owned Owned Owned Owned Owned Owned - --------------------------------------------------------------------------------------------------------------------------------- Trustees/Nominees Putnam Capital Appreciation Fund Putnam Capital Opportunities Fund Putnam Classic Equity Fund - --------------------------------------------------------------------------------------------------------------------------------- Jameson A. Baxter $10,001-$50,000 715.569 $1-$10,000 346.416 Over $100,000 16328.122 - --------------------------------------------------------------------------------------------------------------------------------- Charles B. Curtis $1-$10,000 102.820 $1-$10,000 106.449 $1-$10,000 107.314 - --------------------------------------------------------------------------------------------------------------------------------- Myra R. Drucker - --------------------------------------------------------------------------------------------------------------------------------- Charles E. Haldeman, Jr. $10,001-$50,000 996.205 $10,001-$50,000 1013.18 - --------------------------------------------------------------------------------------------------------------------------------- John A. Hill $50,001-$100,000 3898.796 $10,001-$50,000 5992.578 $50,001-$100,000 10435.097 - --------------------------------------------------------------------------------------------------------------------------------- Ronald J. Jackson $1-$10,000 262.089 $1-$10,000 207.450 $1-$10,000 234.306 - --------------------------------------------------------------------------------------------------------------------------------- Paul L. Joskow $10,001-$50,000 723.839 $1-$10,000 183.608 $10,001-$50,000 2020.29 - --------------------------------------------------------------------------------------------------------------------------------- Elizabeth T. Kennan $1-$10,000 251.929 $10,001-$50,000 1104.294 $1-$10,000 191.797 - --------------------------------------------------------------------------------------------------------------------------------- John H. Mullin, III $50,001-$100,000 6477.672 $50,001-$100,000 5695.393 $10,001-$50,000 2769.75 - --------------------------------------------------------------------------------------------------------------------------------- Robert E. Patterson $1-$10,000 482.640 $1-$10,000 837.144 $1-$10,000 687.503 - --------------------------------------------------------------------------------------------------------------------------------- George Putnam, III $10,001-$50,000 1238.256 $10,001-$50,000 1192.389 $50,001-$100,000 6316.991 - --------------------------------------------------------------------------------------------------------------------------------- A.J.C. Smith $1-$10,000 284.565 $1-$10,000 100.000 $1-$10,000 236.905 - --------------------------------------------------------------------------------------------------------------------------------- W. Thomas Stephens $1-$10,000 137.383 $1-$10,000 100.000 $1-$10,000 143.732 - --------------------------------------------------------------------------------------------------------------------------------- Richard B. Worley - --------------------------------------------------------------------------------------------------------------------------------- Dollar Range Shares Dollar Range Shares of Shares Beneficially of Shares Beneficially Owned Owned Owned Owned - --------------------------------------------------------------------------------------------------------------------------------- Putnam Convertible Trustees/Nominees Income-Growth Trust Putnam Discovery Growth Fund - --------------------------------------------------------------------------------------------------------------------------------- Jameson A. Baxter $10,001-$50,000 1631.226 Over $100,000 12,579.229 - --------------------------------------------------------------------------------------------------------------------------------- Charles B. Curtis $1-$10,000 115.191 $10,001-$50,000 1383.006 - --------------------------------------------------------------------------------------------------------------------------------- Myra R. Drucker - --------------------------------------------------------------------------------------------------------------------------------- Charles E. Haldeman, Jr. - --------------------------------------------------------------------------------------------------------------------------------- John A. Hill Over $100,000 24183.105 $1-$10,000 2303.388 - --------------------------------------------------------------------------------------------------------------------------------- Ronald J. Jackson $1-$10,000 431.317 $1-$10,000 243.964 - --------------------------------------------------------------------------------------------------------------------------------- Paul L. Joskow $10,001-$50,000 835.066 $1-$10,000 360.285 - --------------------------------------------------------------------------------------------------------------------------------- Elizabeth T. Kennan $10,001-$50,000 994.039 $1-$10,000 675.427 - --------------------------------------------------------------------------------------------------------------------------------- John H. Mullin, III $10,001-$50,000 2077.602 $10,001-$50,000 2987.873 - --------------------------------------------------------------------------------------------------------------------------------- Robert E. Patterson $10,001-$50,000 1732.636 $1-$10,000 799.281 - --------------------------------------------------------------------------------------------------------------------------------- George Putnam, III $10,001-$50,000 1324.257 $1-$10,000 2101.545 - --------------------------------------------------------------------------------------------------------------------------------- A.J.C. Smith $1-$10,000 364.960 $1-$10,000 323.142 - --------------------------------------------------------------------------------------------------------------------------------- W. Thomas Stephens $1-$10,000 193.543 $1-$10,000 208.686 - --------------------------------------------------------------------------------------------------------------------------------- Richard B. Worley - --------------------------------------------------------------------------------------------------------------------------------- Dollar Range Shares Dollar Range Shares of Shares Beneficially of Shares Beneficially Owned Owned Owned Owned - --------------------------------------------------------------------------------------------------------------------------------- Trustees/Nominees Putnam Equity Income Fund Putnam Europe Equity Fund - --------------------------------------------------------------------------------------------------------------------------------- Jameson A. Baxter $10,001-$50,000 2726.503 $10,001-$50,000 1215.293 - --------------------------------------------------------------------------------------------------------------------------------- Charles B. Curtis $1-$10,000 109.101 $1-$10,000 104.829 - --------------------------------------------------------------------------------------------------------------------------------- Myra R. Drucker - --------------------------------------------------------------------------------------------------------------------------------- Charles E. Haldeman, Jr. - --------------------------------------------------------------------------------------------------------------------------------- John A. Hill Over $100,000 10823.609 $1-$10,000 500.000 - --------------------------------------------------------------------------------------------------------------------------------- Ronald J. Jackson $1-$10,000 299.929 $1-$10,000 244.253 - --------------------------------------------------------------------------------------------------------------------------------- Paul L. Joskow $50,001-$100,000 5588.703 $1-$10,000 533.109 - --------------------------------------------------------------------------------------------------------------------------------- Elizabeth T. Kennan $10,001-$50,000 1498.501 $1-$10,000 361.022 - --------------------------------------------------------------------------------------------------------------------------------- John H. Mullin, III $10,001-$50,000 2392.515 $10,001-$50,000 665.610 - --------------------------------------------------------------------------------------------------------------------------------- Robert E. Patterson $10,001-$50,000 1315.648 $10,001-$50,000 1958.550 - --------------------------------------------------------------------------------------------------------------------------------- George Putnam, III $10,001-$50,000 1414.878 $10,001-$50,000 933.566 - --------------------------------------------------------------------------------------------------------------------------------- A.J.C. Smith $1-$10,000 502.204 $1-$10,000 159.520 - --------------------------------------------------------------------------------------------------------------------------------- W. Thomas Stephens $1-$10,000 152.322 $1-$10,000 134.409 - --------------------------------------------------------------------------------------------------------------------------------- Richard B. Worley - --------------------------------------------------------------------------------------------------------------------------------- Dollar Range Shares Dollar Range Shares Dollar Range Shares of Shares Beneficially of Shares Beneficially of Shares Beneficially Owned Owned Owned Owned Owned Owned - --------------------------------------------------------------------------------------------------------------------------------- Trustees/Nominees The George Putnam Fund of Boston Putnam Global Equity Fund Putnam Global Natural Resources Fund - --------------------------------------------------------------------------------------------------------------------------------- Jameson A. Baxter $50,001-$100,000 4084.25 $50,001-$100,000 7703.029 $10,001-$50,000 920.093 - --------------------------------------------------------------------------------------------------------------------------------- Charles B. Curtis $1-$10,000 248.590 $10,001-$50,000 5286.432 $1-$10,000 113.510 - --------------------------------------------------------------------------------------------------------------------------------- Myra R. Drucker - --------------------------------------------------------------------------------------------------------------------------------- Charles E. Haldeman, Jr. $10,001-$50,000 625.693 - --------------------------------------------------------------------------------------------------------------------------------- John A. Hill Over $100,000 19796.222 Over $100,000 29842.849 Over $100,000 6145.952 - --------------------------------------------------------------------------------------------------------------------------------- Ronald J. Jackson $50,001-$100,000 5410.934 $1-$10,000 208.270 $10,001-$50,000 448.000 - --------------------------------------------------------------------------------------------------------------------------------- Paul L. Joskow $10,001-$50,000 1729.101 $1-$10,000 700.412 $1-$10,000 123.590 - --------------------------------------------------------------------------------------------------------------------------------- Elizabeth T. Kennan $10,001-$50,000 1155.086 $10,001-$50,000 3889.666 $10,001-$50,000 805.519 - --------------------------------------------------------------------------------------------------------------------------------- John H. Mullin, III $10,001-$50,000 5249.942 $50,001-$100,000 8909.351 $10,001-$50,000 654.818 - --------------------------------------------------------------------------------------------------------------------------------- Robert E. Patterson $10,001-$50,000 1092.513 $50,001-$100,000 10394.483 $1-$10,000 281.389 - --------------------------------------------------------------------------------------------------------------------------------- George Putnam, III $50,001-$100,000 5592.022 Over $100,000 29645.314 $10,001-$50,000 1214.292 - --------------------------------------------------------------------------------------------------------------------------------- A.J.C. Smith $10,001-$50,000 1330.678 $10,001-$50,000 2311.026 $1-$10,000 266.030 - --------------------------------------------------------------------------------------------------------------------------------- W. Thomas Stephens $1-$10,000 257.335 $1-$10,000 624.816 $1-$10,000 149.739 - --------------------------------------------------------------------------------------------------------------------------------- Richard B. Worley - --------------------------------------------------------------------------------------------------------------------------------- Dollar Range Shares Dollar Range Shares Dollar Range Shares of Shares Beneficially of Shares Beneficially of Shares Beneficially Owned Owned Owned Owned Owned Owned - --------------------------------------------------------------------------------------------------------------------------------- Trustees/Nominees The Putnam Fund for Growth and Income Putnam Growth Opportunities Fund Putnam Health Sciences Trust - --------------------------------------------------------------------------------------------------------------------------------- Jameson A. Baxter Over $100,000 9,350.354 $10,001-$50,000 1537.221 Over 100,000 2167.541 - --------------------------------------------------------------------------------------------------------------------------------- Charles B. Curtis $10,001-$50,000 1924.766 $1-$10,000 105.029 $1-$10,000 100.00 - --------------------------------------------------------------------------------------------------------------------------------- Myra R. Drucker - --------------------------------------------------------------------------------------------------------------------------------- Charles E. Haldeman, Jr. $10,001-$50,000 817.797 - --------------------------------------------------------------------------------------------------------------------------------- John A. Hill Over $100,000 9913.376 $10,001-$50,000 2516.579 Over $100,000 3670.194 - --------------------------------------------------------------------------------------------------------------------------------- Ronald J. Jackson Over $100,000 34075.751 $1-$10,000 193.855 $1-$10,000 100.00 - --------------------------------------------------------------------------------------------------------------------------------- Paul L. Joskow Over-$100,000 7489.43 $1-$10,000 578.797 $10,001-$50,000 436.772 - --------------------------------------------------------------------------------------------------------------------------------- Elizabeth T. Kennan $10,001-$50,000 603.004 $10,001-$50,000 1007.462 $1-$10,000 100.00 - --------------------------------------------------------------------------------------------------------------------------------- John H. Mullin, III Over $100,000 4528.036 $10,001-$50,000 1152.083 $50,001-$100,000 1091.876 - --------------------------------------------------------------------------------------------------------------------------------- Robert E. Patterson $1-$10,000 522.329 $1-$10,000 688.172 $10,001-$50,000 230.980 - --------------------------------------------------------------------------------------------------------------------------------- George Putnam, III Over $100,000 42571.034 $10,001-$50,000 2762.012 $50,001-$100,000 939.498 - --------------------------------------------------------------------------------------------------------------------------------- A.J.C. Smith Over $100,000 6875.284 $1-$10,000 100.000 $10,001-$50,000 455.658 - --------------------------------------------------------------------------------------------------------------------------------- W. Thomas Stephens Over $100,000 12731.639 $1-$10,000 101.018 $1-$10,000 138.237 - --------------------------------------------------------------------------------------------------------------------------------- Richard B. Worley - --------------------------------------------------------------------------------------------------------------------------------- Dollar Range Shares Dollar Range Shares Dollar Range Shares of Shares Beneficially of Shares Beneficially of Shares Beneficially Owned Owned Owned Owned Owned Owned - --------------------------------------------------------------------------------------------------------------------------------- Putnam International Putnam International Growth Trustees/Nominees Capital Opportunities Fund Putnam International Equity Fund and Income Fund - --------------------------------------------------------------------------------------------------------------------------------- Jameson A. Baxter $10,001-$50,000 6392.319 Over $100,000 11,214.114 $1-$10,000 679.096 - --------------------------------------------------------------------------------------------------------------------------------- Charles B. Curtis $1-$10,000 105.802 $1-$10,000 199.030 $1-$10,000 105.036 - --------------------------------------------------------------------------------------------------------------------------------- Myra R. Drucker - --------------------------------------------------------------------------------------------------------------------------------- Charles E. Haldeman, Jr. $10,001-$50,000 710.359 $10,001-$50,000 1438.354 - --------------------------------------------------------------------------------------------------------------------------------- John A. Hill Over $100,000 8211.346 Over $100,000 14909.236 Over $100,000 22658.411 - --------------------------------------------------------------------------------------------------------------------------------- Ronald J. Jackson $1-$10,000 214.242 $1-$10,000 253.162 $1-$10,000 518.251 - --------------------------------------------------------------------------------------------------------------------------------- Paul L. Joskow $1-$10,000 406.637 Over $100,000 5866.594 $1-$10,000 483.927 - --------------------------------------------------------------------------------------------------------------------------------- Elizabeth T. Kennan $1-$10,000 1197.934 $10,001-$50,000 940.734 $1-$10,000 221.427 - --------------------------------------------------------------------------------------------------------------------------------- John H. Mullin, III Over $100,000 5036.801 $10,001-$50,000 2350.4 $1-$10,000 954.473 - --------------------------------------------------------------------------------------------------------------------------------- Robert E. Patterson $10,001-$50,000 427.582 $50,001-$100,000 2868.286 $1-$10,000 855.164 - --------------------------------------------------------------------------------------------------------------------------------- George Putnam, III $10,001-$50,000 1113.326 $10,001-$50,000 749.876 $10,001-$50,000 2218.493 - --------------------------------------------------------------------------------------------------------------------------------- A.J.C. Smith $1-$10,000 100.000 $1-$10,000 244.999 $1-$10,000 100.000 - --------------------------------------------------------------------------------------------------------------------------------- W. Thomas Stephens $1-$10,000 119.660 $1-$10,000 179.103 $1-$10,000 149.025 - --------------------------------------------------------------------------------------------------------------------------------- Richard B. Worley - --------------------------------------------------------------------------------------------------------------------------------- Dollar Range Shares Dollar Range Shares Dollar Range Shares of Shares Beneficially of Shares Beneficially of Shares Beneficially Owned Owned Owned Owned Owned Owned - --------------------------------------------------------------------------------------------------------------------------------- Putnam International Trustees Trustees/Nominees New Opportunities Fund Putnam Investors Fund Putnam Mid Cap Value Fund - --------------------------------------------------------------------------------------------------------------------------------- Jameson A. Baxter $10,001-$50,000 2,191.36 Over $100,000 13,204.415 $10,001-$50,000 2053.445 - --------------------------------------------------------------------------------------------------------------------------------- Charles B. Curtis $1-$10,000 102.166 $1-$10,000 102.415 $1-$10,000 105.982 - --------------------------------------------------------------------------------------------------------------------------------- Myra R. Drucker - --------------------------------------------------------------------------------------------------------------------------------- Charles E. Haldeman, Jr. $10,001-$50,000 1149.541 - --------------------------------------------------------------------------------------------------------------------------------- John A. Hill $1-$10,000 200.000 Over $100,000 25057.65 $1-$10,000 108.904 - --------------------------------------------------------------------------------------------------------------------------------- Ronald J. Jackson $1-$10,000 313.103 Over $100,000 73276.008 $1-$10,000 352.798 - --------------------------------------------------------------------------------------------------------------------------------- Paul L. Joskow $10,001-$50,000 1243.015 $50,001-$100,000 7015.402 $1-$10,000 120.072 - --------------------------------------------------------------------------------------------------------------------------------- Elizabeth T. Kennan $1-$10,000 197.710 $10,001-$50,000 1359.807 $1-$10,000 490.096 - --------------------------------------------------------------------------------------------------------------------------------- John H. Mullin, III $10,001-$50,000 3546.812 Over $100,000 8659.24 $50,001-$100,000 8192.574 - --------------------------------------------------------------------------------------------------------------------------------- Robert E. Patterson $10,001-$50,000 1335.641 $10,001-$50,000 1314.557 $1-$10,000 680.668 - --------------------------------------------------------------------------------------------------------------------------------- George Putnam, III $10,001-$50,000 1387.061 $10,001-$50,000 2437.122 $10,001-$50,000 2139.429 - --------------------------------------------------------------------------------------------------------------------------------- A.J.C. Smith $1-$10,000 100.00 $50,001-$100,000 8623.297 $1-$10,000 100.000 - --------------------------------------------------------------------------------------------------------------------------------- W. Thomas Stephens $1-$10,000 148.014 $1-$10,000 115.677 $1-$10,000 100.000 - --------------------------------------------------------------------------------------------------------------------------------- Richard B. Worley - --------------------------------------------------------------------------------------------------------------------------------- Dollar Range Shares Dollar Range Shares of Shares Beneficially of Shares Beneficially Owned Owned Owned Owned - --------------------------------------------------------------------------------------------------------------------------------- Trustees/Nominees Putnam New Opportunities Fund Putnam New Value Fund - --------------------------------------------------------------------------------------------------------------------------------- Jameson A. Baxter $50,001-$100,000 1,734.607 Over 100,000 6,881.741 - --------------------------------------------------------------------------------------------------------------------------------- Charles B. Curtis $50,001-$100,000 2254.69 $1-$10,000 107.243 - --------------------------------------------------------------------------------------------------------------------------------- Myra R. Drucker - --------------------------------------------------------------------------------------------------------------------------------- Charles E. Haldeman, Jr. $10,001-$50,000 909.242 - --------------------------------------------------------------------------------------------------------------------------------- John A. Hill $50,001-$100,000 2385.464 $50,001-$100,000 3872.531 - --------------------------------------------------------------------------------------------------------------------------------- Ronald J. Jackson $1-$10,000 204.570 $1-$10,000 233.773 - --------------------------------------------------------------------------------------------------------------------------------- Paul L. Joskow $10,001-$50,000 1111.62 $1-$10,000 584.206 - --------------------------------------------------------------------------------------------------------------------------------- Elizabeth T. Kennan $1-$10,000 100.000 $10,001-$50,000 1333.438 - --------------------------------------------------------------------------------------------------------------------------------- John H. Mullin, III Over $100,000 5927.957 $10,001-$50,000 2638.549 - --------------------------------------------------------------------------------------------------------------------------------- Robert E. Patterson $10,001-$50,000 1038.444 $10,001-$50,000 1325.964 - --------------------------------------------------------------------------------------------------------------------------------- George Putnam, III $10,001-$50,000 763.162 $10,001-$50,000 1398.657 - --------------------------------------------------------------------------------------------------------------------------------- A.J.C. Smith $10,001-$50,000 638.496 $1-$10,000 100.000 - --------------------------------------------------------------------------------------------------------------------------------- W. Thomas Stephens $1-$10,000 133.948 $1-$10,000 143.838 - --------------------------------------------------------------------------------------------------------------------------------- Richard B. Worley - --------------------------------------------------------------------------------------------------------------------------------- Dollar Range Shares Dollar Range Shares Dollar Range Shares of Shares Beneficially of Shares Beneficially of Shares Beneficially Owned Owned Owned Owned Owned Owned - --------------------------------------------------------------------------------------------------------------------------------- Trustees/Nominees Putnam OTC & Emerging Growth Fund Putnam Research Fund Putnam Small Cap Growth Fund - --------------------------------------------------------------------------------------------------------------------------------- Jameson A. Baxter $10,001-$50,000 2,704.695 $1-$10,000 414.462 $10,001-$50,000 705.048 - --------------------------------------------------------------------------------------------------------------------------------- Charles B. Curtis $1-$10,000 105.121 $1-$10,000 104.965 $10,001-$50,000 536.136 - --------------------------------------------------------------------------------------------------------------------------------- Myra R. Drucker - --------------------------------------------------------------------------------------------------------------------------------- Charles E. Haldeman, Jr. - --------------------------------------------------------------------------------------------------------------------------------- John A. Hill $10,001-$50,000 1951.847 $50,001-$100,000 3902.146 $10,001-$50,000 2144.691 - --------------------------------------------------------------------------------------------------------------------------------- Ronald J. Jackson $10,001-$50,000 1968.372 Over $100,000 8167.352 $1-$10,000 206.855 - --------------------------------------------------------------------------------------------------------------------------------- Paul L. Joskow $1-$10,000 129.574 $50,001-$100,000 5449.857 $50,001-$100,000 4297.547 - --------------------------------------------------------------------------------------------------------------------------------- Elizabeth T. Kennan $1-$10,000 1141.113 $10,001-$50,000 867.630 $10,001-$50,000 915.840 - --------------------------------------------------------------------------------------------------------------------------------- John H. Mullin, III $10,001-$50,000 6484.534 $10,001-$50,000 849.291 $50,001-$100,000 3996.697 - --------------------------------------------------------------------------------------------------------------------------------- Robert E. Patterson $1-$10,000 259.060 $1-$10,000 145.779 $1-$10,000 450.272 - --------------------------------------------------------------------------------------------------------------------------------- George Putnam, III $50,001-$100,000 10112.593 $10,001-$50,000 1738.068 $10,001-$50,000 1235.585 - --------------------------------------------------------------------------------------------------------------------------------- A.J.C. Smith $10,001-$50,000 3094.300 $1-$10,000 148.213 $1-$10,000 100.000 - --------------------------------------------------------------------------------------------------------------------------------- W. Thomas Stephens $1-$10,000 144.331 $1-$10,000 100.000 $1-$10,000 100.000 - --------------------------------------------------------------------------------------------------------------------------------- Richard B. Worley - --------------------------------------------------------------------------------------------------------------------------------- Dollar Range Shares Dollar Range Shares of Shares Beneficially of Shares Beneficially Owned Owned Owned Owned - --------------------------------------------------------------------------------------------------------------------------------- Trustees/Nominees Putnam Small Cap Value Fund Putnam Tax Smart Equity Fund - --------------------------------------------------------------------------------------------------------------------------------- Jameson A. Baxter $10,001-$50,000 1,867.779 $10,001-$50,000 1237.843 - --------------------------------------------------------------------------------------------------------------------------------- Charles B. Curtis $1-$10,000 108.025 $1-$10,000 102.210 - --------------------------------------------------------------------------------------------------------------------------------- Myra R. Drucker - --------------------------------------------------------------------------------------------------------------------------------- Charles E. Haldeman, Jr. $10,001-$50,000 1434.121 - --------------------------------------------------------------------------------------------------------------------------------- John A. Hill Over $100,000 13881.248 $10,001-$50,000 2475.685 - --------------------------------------------------------------------------------------------------------------------------------- Ronald J. Jackson $1-$10,000 460.660 Over $100,000 11228.341 - --------------------------------------------------------------------------------------------------------------------------------- Paul L. Joskow $50,001-$100,000 2828.795 $50,000-$100,000 5392.129 - --------------------------------------------------------------------------------------------------------------------------------- Elizabeth T. Kennan $10,001-$50,000 1355.865 $1-$10,000 106.693 - --------------------------------------------------------------------------------------------------------------------------------- John H. Mullin, III/ Over $100,000 6633.668 $10,001-$50,000 3840.080 - --------------------------------------------------------------------------------------------------------------------------------- Robert E. Patterson $1-$10,000 488.256 $1-$10,000 943.821 - --------------------------------------------------------------------------------------------------------------------------------- George Putnam, III $10,001-$50,000 1095.726 $10,001-$50,000 1305.767 - --------------------------------------------------------------------------------------------------------------------------------- A.J.C. Smith $1-$10,000 100.000 $1-$10,000 100.000 - --------------------------------------------------------------------------------------------------------------------------------- W. Thomas Stephens $1-$10,000 100.000 $1-$10,000 100.000 - --------------------------------------------------------------------------------------------------------------------------------- Richard B. Worley - --------------------------------------------------------------------------------------------------------------------------------- Dollar Range Shares Dollar Range Shares of Shares Beneficially of Shares Beneficially Owned Owned Owned Owned - --------------------------------------------------------------------------------------------------------------------------------- Trustees/Nominees Putnam Utilities Growth and Income Fund Putnam Vista Fund - --------------------------------------------------------------------------------------------------------------------------------- Jameson A. Baxter $10,001-$50,000 618.997 Over $100,000 13,673.755 - --------------------------------------------------------------------------------------------------------------------------------- Charles B. Curtis $1-$10,000 112.628 $1-$10,000 108.696 - --------------------------------------------------------------------------------------------------------------------------------- Myra R. Drucker - --------------------------------------------------------------------------------------------------------------------------------- Charles E. Haldeman, Jr. $10,001-$50,000 1759.930 - --------------------------------------------------------------------------------------------------------------------------------- John A. Hill $10,001-$50,000 3240.898 Over $100,000 24573.347 - --------------------------------------------------------------------------------------------------------------------------------- Ronald J. Jackson $1-$10,000 816.839 $1-$10,000 565.702 - --------------------------------------------------------------------------------------------------------------------------------- Paul L. Joskow $1-$10,000 912.907 $10,001-$50,000 1657.718 - --------------------------------------------------------------------------------------------------------------------------------- Elizabeth T. Kennan $1-$10,000 110.835 $1-$10,000 662.864 - --------------------------------------------------------------------------------------------------------------------------------- John H. Mullin, III/ $10,001-$50,000 2307.695 $50,001-$100,000 10343.971 - --------------------------------------------------------------------------------------------------------------------------------- Robert E. Patterson $1-$10,000 685.142 $10,001-$50,000 1479.233 - --------------------------------------------------------------------------------------------------------------------------------- George Putnam, III $10,001-$50,000 2076.560 $10,001-$50,000 4475.699 - --------------------------------------------------------------------------------------------------------------------------------- A.J.C. Smith $1-$10,000 248.838 $10,001-$50,000 3322.336 - --------------------------------------------------------------------------------------------------------------------------------- W. Thomas Stephens $1-$10,000 162.025 $1-$10,000 177.190 - --------------------------------------------------------------------------------------------------------------------------------- Richard B. Worley - --------------------------------------------------------------------------------------------------------------------------------- Dollar Range Shares Dollar Range of Shares Beneficially of Shares Owned Owned Owned - --------------------------------------------------------------------------------------- Trustees/Nominees Putnam Voyager Fund All Funds - --------------------------------------------------------------------------------------- Jameson A. Baxter $1-$10,000 5,759.153 Over $100,000 - --------------------------------------------------------------------------------------- Charles B. Curtis $1-$10,000 108.848 Over $100,000 - --------------------------------------------------------------------------------------- Myra R. Drucker - --------------------------------------------------------------------------------------- Charles E. Haldeman, Jr. $10,001-$50,000 920.802 Over $100,000 - --------------------------------------------------------------------------------------- John A. Hill Over $100,000 23371.655 Over $100,000 - --------------------------------------------------------------------------------------- Ronald J. Jackson Over $100,000 8722.033 Over $100,000 - --------------------------------------------------------------------------------------- Paul L. Joskow Over $100,000 6528.631 Over $100,000 - --------------------------------------------------------------------------------------- Elizabeth T. Kennan $1-$10,000 297.444 Over $100,000 - --------------------------------------------------------------------------------------- John H. Mullin, III/ $50,001-$100,000 5970.143 Over $100,000 - --------------------------------------------------------------------------------------- Robert E. Patterson $50,001-$100,000 3829.659 Over $100,000 - --------------------------------------------------------------------------------------- George Putnam, III $10,001-$50,000 2182.800 Over $100,000 - --------------------------------------------------------------------------------------- A.J.C. Smith $50,001-$100,000 3762.124 Over $100,000 - --------------------------------------------------------------------------------------- W. Thomas Stephens $1-$10,000 148.108 Over $100,000 - --------------------------------------------------------------------------------------- Richard B. Worley - --------------------------------------------------------------------------------------- At [May 31, 2004], the Trustees and officers of each fund owned less than 1% of the fund. ** These holdings do not include shares of Putnam money market funds. + Dr. Shapiro previously served as a Trustee of the Putnam funds from 1984 to 1989. As of March 15, 1996, the Trustees and officers of the fund owned a total of shares of the fund, comprising less than 1% of its outstanding shares of each class of each fund on that date. A total
* What are some of of these shares are held by certain "interested" Trustees and officers of your fund and Putnam Management as individual accountsthe ways in which the Putnam Investments, Inc. Profit Sharing Retirement Plan. Each individual account holder has sole investment power and shared voting power with respect to his/her account. WHAT ARE SOME OF THE WAYS IN WHICH THE TRUSTEES REPRESENT SHAREHOLDER INTERESTS?trustees represent shareholder interests? The Trustees believe that, as substantial investors in the Putnam funds, their interests are closely aligned with those of individual shareholders. Among other ways, the Trustees seek to represent shareholder interests: * by carefully reviewing your fund's investment performance on an individual basis with your fund's managers;investment team; * by also carefully reviewing the quality of the various other services provided to the funds and their shareholders by Putnam Management and its affiliates; * by discussing with senior management of Putnam Management steps being taken to address any performance deficiencies; * by reviewingconducting an in-depth review of the fees paid toby each fund and by negotiating with Putnam Management to ensure that such fees remain reasonable and competitive with those of other mutual funds, while at the same time providing Putnam Management sufficient resources to continue to provide high quality services in the future; * by reviewing brokerage costs and fees, allocations among brokers, soft dollar expenditures and similar expenses of each fund; * by monitoring potential conflicts between the funds and Putnam Management and its affiliates to ensure that the funds continue to be managed in the best interests of their shareholders; and * by also monitoring potential conflicts among funds to ensure that shareholders continue to realize the benefits of participation in a large and diverse family of funds. HOW OFTEN DO THE TRUSTEES MEET?* How can shareholders communicate with the trustees? The Board of Trustees provides a process for shareholders to send communications to the Trustees. Shareholders may direct communications to the Board of Trustees as a whole or to specified individual Trustees by submitting them in writing to the following address: The Putnam Funds Attention: "Board of Trustees" or any specified Trustee(s) One Post Office Square Boston, Massachusetts 02109 The written communication must include the shareholder's name, be signed by the shareholder, refer to the Putnam fund(s) in which the shareholder holds shares, and include the class and number of shares held by the shareholder as of a recent date. The Office of the Trustees will respond to all correspondence sent to Trustees; however, due to the volume of correspondence, all communications are not sent directly to the Trustees. The correspondence is reviewed, summarized and presented to Trustees on a periodic basis. * How often do the trustees meet? The Trustees meet each month (except August) over a two-day period to review the operations of your fund and of the othereach Putnam funds.fund. A portion of these meetings is devoted to meetings of various Committeescommittees of the board which focus on particular matters. These include: the Contract Committee, which reviews all contractual arrangements with Putnam Management and its affiliates; the Communication and Service Committee, which reviews the quality of services provided by your fund's investor servicing agent, custodian and distributor; the Pricing, Brokerage and Special Investments Committee, which reviews matters relating to valuation of securities, best execution, brokerage costs and allocations and new investment techniques; the Audit Committee, which reviews accounting policies and the adequacy of internal controls and supervises the engagement of the funds' auditors; the Compensation, Administration and Legal Affairs Committee, which reviews the compensation of the Trustees and their administrative staff and supervises the engagement of the funds' independent counsel; and the Nominating Committee, which is responsible for selecting nominees for election as Trustees. Each Trustee generally attends at least two formal committee meetings during such monthlyeach regular meeting of the Trustees. During 1995,2003, the average Trustee participated in approximately 4049 committee and board meetings. In addition, the Trustees meet in small groups with Chief Investment Officers, Portfolio Leaders and Portfolio ManagersMembers to review recent performance and the current investment climate for selected funds. These meetings ensure that each fund's performance is reviewed in detail at least twice a year. The Contract Committee typically meets on several additional occasions during the year to carry out its responsibilities. Other Committees,committees, including anthe Executive Committee, may also meet on special occasions as the need arises. WHAT ARE THE TRUSTEES PAID FOR THEIR SERVICES?The number of times each committee met during calendar year 2003 is shown in the table below: Audit and Pricing Committee 15 - ---------------------------------------------------- Board Policy and Nominating Committee 7 - ---------------------------------------------------- Brokerage and Custody Committee 4 - ---------------------------------------------------- Communication, Service and Marketing Committee 9 - ---------------------------------------------------- Contract Committee 14 - ---------------------------------------------------- Distributions Committee 6 - ---------------------------------------------------- Executive Committee 1 - ---------------------------------------------------- Investment Oversight Committees 30 - ---------------------------------------------------- Your fund pays eachdoes not have a policy with regard to Trustees' attendance at shareholder meetings. The funds are not required under their Agreements and Declarations of Trust to hold annual meetings. * What are the trustees paid for their services? Each Trustee of your fund receives a fee for his or her services. Each Trustee also receives fees for serving as Trustee of the other Putnam funds. Each Trustee receives an annual fee and an additional fee for each Trustees' meeting attended. Trustees who are not "interested persons" of Putnam Management (as such term is defined in the 1940 Act) and who serve on committees of the Trustees receive additional fees for attendance at certain committee meetings and for special services rendered in that connection. All of the current Trustees are Trustees of all the Putnam funds and each receives fees for his or her services. The Trustees periodically review their fees to assureensure that such fees continue to be appropriate in light of their responsibilities as well as in relation to fees paid to trustees of other mutual fund complexes. The Board Policy and Nominating Committee, which consists only of Trustees who are not "interested persons" of your fund or Putnam Management (as such term is defined in the 1940 Act), estimates that Committee and Trustee meeting time, together with the appropriate preparation, requires the equivalent of at least three business days per Trustee meeting. The following table shows the fees paid to each current Trustee by your fund for its most recent fiscal year and the fees paid to each current Trustee by all of the Putnam funds are shown below: COMPENSATION TABLE Total Aggregate compensation compensation from all Trustees from the fund* Putnam funds** - -------------------------------------------------------------- Jameson A. Baxter $2,769 $150,854 Hans H. Estin 2,769 150,854 John A. Hill*** 2,753 149,854 Elizabeth T. Kennan 2,737 148,854 Lawrence J. Lasser 2,769 150,854 Robert E. Patterson 2,800 152,854 Donald S. Perkins 2,769 150,854 William F. Pounds 2,784 149,854 George Putnam 2,769 150,854 George Putnam, III 2,769 150,854 Eli Shapiro**** 695 95,372 A.J.C. Smith 2,727 149,854 W. Nicholas Thorndike 2,800 152,854 *during calendar year 2003:
COMPENSATION TABLE Retirement Retirement benefits benefits Aggregate accrued as Aggregate accrued as Compensation part of fund Compensation part of fund from the fund expenses from the fund expenses - ---------------------------------------------------------------------------------------- Putnam Asset Allocation: Putnam Asset Allocation: Trustees Balanced Portfolio Conservative Portfolio - ---------------------------------------------------------------------------------------- Jameson A. Baxter/1994(5) $2,519 $789 $1,558 $434 - ---------------------------------------------------------------------------------------- Charles B. Curtis/2001 2,470 632 1,529 345 - ---------------------------------------------------------------------------------------- John A. Hill/1985(5)(7) 4,246 936 2,614 515 - ---------------------------------------------------------------------------------------- Ronald J. Jackson/1996(5) 2,471 732 1,531 402 - ---------------------------------------------------------------------------------------- Paul L. Joskow/1997(5) 2,495 606 1,542 335 - ---------------------------------------------------------------------------------------- Elizabeth T. Kennan/1992 2,483 963 1,524 530 - ---------------------------------------------------------------------------------------- John H. Mullin, III/1997(5) 2,501 926 1,545 512 - ---------------------------------------------------------------------------------------- Robert E. Patterson/1984 2,501 524 1,545 288 - ---------------------------------------------------------------------------------------- George Putnam, III/1984(7) 3,088 431 1,905 237 - ---------------------------------------------------------------------------------------- A.J.C. Smith/1986(6) 0 997 0 548 - ---------------------------------------------------------------------------------------- W. Thomas Stephens/1997(5) 2,455 848 1,516 470 - ---------------------------------------------------------------------------------------- Retirement Retirement benefits benefits Aggregate accrued as Aggregate accrued as Compensation part of fund Compensation part of fund from the fund expenses from the fund expenses - ---------------------------------------------------------------------------------------- Putnam Asset Allocation: Putnam Capital Trustees Growth Portfolio Appreciation Fund - ---------------------------------------------------------------------------------------- Jameson A. Baxter/1994(5) $2,309 $668 $1,931 $551 - ---------------------------------------------------------------------------------------- Charles B. Curtis/2001 2,264 549 1,419 378 - ---------------------------------------------------------------------------------------- John A. Hill/1985(5)(7) 3,892 787 3,117 676 - ---------------------------------------------------------------------------------------- Ronald J. Jackson/1996(5) 2,264 618 1,877 519 - ---------------------------------------------------------------------------------------- Paul L. Joskow/1997(5) 2,286 496 1,903 505 - ---------------------------------------------------------------------------------------- Elizabeth T. Kennan/1992 2,275 811 1,928 693 - ---------------------------------------------------------------------------------------- John H. Mullin, III/1997(5) 2,292 759 1,914 764 - ---------------------------------------------------------------------------------------- Robert E. Patterson/1984 2,292 442 1,914 373 - ---------------------------------------------------------------------------------------- George Putnam, III/1984(7) 2,830 363 2,359 312 - ---------------------------------------------------------------------------------------- A.J.C. Smith/1986(6) 0 839 0 716 - ---------------------------------------------------------------------------------------- W. Thomas Stephens/1997(5) 2,250 694 1,891 708 - ---------------------------------------------------------------------------------------- Retirement Retirement benefits benefits Aggregate accrued as Aggregate accrued as Compensation part of fund Compensation part of fund from the fund expenses from the fund expenses - ---------------------------------------------------------------------------------------- Putnam Capital Putnam Classic Trustees Opportunities Fund Equity Fund - ---------------------------------------------------------------------------------------- Jameson A. Baxter/1994(5) $1,793 $395 $2,386 $731 - ---------------------------------------------------------------------------------------- Charles B. Curtis/2001 1,757 277 2,360 633 - ---------------------------------------------------------------------------------------- John A. Hill/1985(5)(7) 2,962 481 4,020 851 - ---------------------------------------------------------------------------------------- Ronald J. Jackson/1996(5) 1,754 371 2,395 673 - ---------------------------------------------------------------------------------------- Paul L. Joskow/1997(5) 1,773 353 2,361 500 - ---------------------------------------------------------------------------------------- Elizabeth T. Kennan/1992 1,788 494 2,343 878 - ---------------------------------------------------------------------------------------- John H. Mullin, III/1997(5) 1,777 535 2,369 771 - ---------------------------------------------------------------------------------------- Robert E. Patterson/1984 1,777 267 2,372 479 - ---------------------------------------------------------------------------------------- George Putnam, III/1984(7) 2,195 222 2,939 392 - ---------------------------------------------------------------------------------------- A.J.C. Smith/1986(6) 0 510 0 910 - ---------------------------------------------------------------------------------------- W. Thomas Stephens/1997(5) 1,759 495 2,337 700 - ---------------------------------------------------------------------------------------- Retirement Retirement Retirement benefits benefits benefits Aggregate accrued as Aggregate accrued as Aggregate accrued as Compensation part of fund Compensation part of fund Compensation part of fund from the fund expenses from the fund expenses from the fund expenses - ------------------------------------------------------------------------------------------------------------------- Putnam Convertible Putnam Discovery Putnam Equity Trustees Income-Growth Trust Growth Fund Income Fund - ------------------------------------------------------------------------------------------------------------------- Jameson A. Baxter/1994(5) $1,347 $396 $3,146 $958 $3,298 $789 - ------------------------------------------------------------------------------------------------------------------- Charles B. Curtis/2001 1,333 334 3,112 851 3,264 685 - ------------------------------------------------------------------------------------------------------------------- John A. Hill/1985(5)(7) 2,269 463 5,299 1,107 5,530 917 - ------------------------------------------------------------------------------------------------------------------- Ronald J. Jackson/1996(5) 1,352 365 3,158 879 3,313 726 - ------------------------------------------------------------------------------------------------------------------- Paul L. Joskow/1997(5) 1,333 282 3,148 627 3,251 537 - ------------------------------------------------------------------------------------------------------------------- Elizabeth T. Kennan/1992 1,323 478 3,091 1,143 3,226 946 - ------------------------------------------------------------------------------------------------------------------- John H. Mullin, III/1997(5) 1,338 433 3,124 970 3,274 828 - ------------------------------------------------------------------------------------------------------------------- Robert E. Patterson/1984 1,339 260 3,127 625 3,279 517 - ------------------------------------------------------------------------------------------------------------------- George Putnam, III/1984(7) 1,660 214 3,878 510 4,055 423 - ------------------------------------------------------------------------------------------------------------------- A.J.C. Smith/1986(6) 0 496 NA 1,185 NA 981 - ------------------------------------------------------------------------------------------------------------------- W. Thomas Stephens/1997(5) 1,319 394 3,081 878 3,226 752 - ------------------------------------------------------------------------------------------------------------------- Retirement Retirement benefits benefits Aggregate accrued as Aggregate accrued as Compensation part of fund Compensation part of fund from the fund expenses from the fund expenses - ---------------------------------------------------------------------------------------- Putnam Europe The George Putnam Trustees Equity Fund Fund of Boston - ---------------------------------------------------------------------------------------- Jameson A. Baxter/1994(5) $1,733 $536 $5,050 $1,476 - ---------------------------------------------------------------------------------------- Charles B. Curtis/2001 1,697 382 4,953 1,121 - ---------------------------------------------------------------------------------------- John A. Hill/1985(5)(7) 2,859 653 8,511 1,771 - ---------------------------------------------------------------------------------------- Ronald J. Jackson/1996(5) 1,693 503 4,955 1,376 - ---------------------------------------------------------------------------------------- Paul L. Joskow/1997(5) 1,712 474 5,003 1,212 - ---------------------------------------------------------------------------------------- Elizabeth T. Kennan/1992 1,728 670 4,976 1,821 - ---------------------------------------------------------------------------------------- John H. Mullin, III/1997(5) 1,717 718 5,013 1,845 - ---------------------------------------------------------------------------------------- Robert E. Patterson/1984 1,717 362 5,013 987 - ---------------------------------------------------------------------------------------- George Putnam, III/1984(7) 2,119 301 6,192 817 - ---------------------------------------------------------------------------------------- A.J.C. Smith/1986(6) 0 692 0 1,883 - ---------------------------------------------------------------------------------------- W. Thomas Stephens/1997(5) 1,700 663 4,922 1,698 - ---------------------------------------------------------------------------------------- Retirement Retirement benefits benefits Aggregate accrued as Aggregate accrued as Compensation part of fund Compensation part of fund from the fund expenses from the fund expenses - ---------------------------------------------------------------------------------------- Putnam Global Putnam Global Natural Trustees Equity Fund Resources Fund - ---------------------------------------------------------------------------------------- Jameson A. Baxter/1994(5) $4,508 $1,449 $1,031 $264 - ---------------------------------------------------------------------------------------- Charles B. Curtis/2001 4,458 1,196 1,012 211 - ---------------------------------------------------------------------------------------- John A. Hill/1985(5)(7) 7,594 1,705 1,677 314 - ---------------------------------------------------------------------------------------- Ronald J. Jackson/1996(5) 4,524 1,340 1,013 245 - ---------------------------------------------------------------------------------------- Paul L. Joskow/1997(5) 4,460 1,066 1,022 204 - ---------------------------------------------------------------------------------------- Elizabeth T. Kennan/1992 4,427 1,757 1,017 323 - ---------------------------------------------------------------------------------------- John H. Mullin, III/1997(5) 4,475 1,635 1,024 311 - ---------------------------------------------------------------------------------------- Robert E. Patterson/1984 4,480 957 1,024 175 - ---------------------------------------------------------------------------------------- George Putnam, III/1984(7) 5,553 786 1,244 145 - ---------------------------------------------------------------------------------------- A.J.C. Smith/1986(6) NA 1,820 0 334 - ---------------------------------------------------------------------------------------- W. Thomas Stephens/1997(5) 4,415 1,493 1,007 285 - ---------------------------------------------------------------------------------------- Retirement Retirement benefits benefits Aggregate accrued as Aggregate accrued as Compensation part of fund Compensation part of fund from the fund expenses from the fund expenses - ---------------------------------------------------------------------------------------- The Putnam Fund Putnam Growth Trustees for Growth and Income Opportunities Fund - ---------------------------------------------------------------------------------------- Jameson A. Baxter/1994(5) $10,730 $3,330 $3,128 $1,047 - ---------------------------------------------------------------------------------------- Charles B. Curtis/2001 10,609 2,796 3,066 776 - ---------------------------------------------------------------------------------------- John A. Hill/1985(5)(7) 18,080 3,902 5,275 1,263 - ---------------------------------------------------------------------------------------- Ronald J. Jackson/1996(5) 10,766 3,073 3,065 978 - ---------------------------------------------------------------------------------------- Paul L. Joskow/1997(5) 10,612 2,389 3,096 884 - ---------------------------------------------------------------------------------------- Elizabeth T. Kennan/1992 10,534 4,023 3,083 1,298 - ---------------------------------------------------------------------------------------- John H. Mullin, III/1997(5) 10,650 3,669 3,105 1,344 - ---------------------------------------------------------------------------------------- Robert E. Patterson/1984 10,663 2,193 3,105 702 - ---------------------------------------------------------------------------------------- George Putnam, III/1984(7) 13,213 1,799 3,832 582 - ---------------------------------------------------------------------------------------- A.J.C. Smith/1986(6) 0 4,197 0 1,341 - ---------------------------------------------------------------------------------------- W. Thomas Stephens/1997(5) 10,508 3,344 3,048 1,239 - ---------------------------------------------------------------------------------------- Retirement Retirement benefits benefits Aggregate accrued as Aggregate accrued as Compensation part of fund Compensation part of fund from the fund expenses from the fund expenses - ---------------------------------------------------------------------------------------- Putnam Health Putnam International Trustees Sciences Trust Capital Opportunities Fund - ---------------------------------------------------------------------------------------- Jameson A. Baxter/1994(5) $4,763 $1,390 $2,617 $744 - ---------------------------------------------------------------------------------------- Charles B. Curtis/2001 4,670 1,101 2,566 594 - ---------------------------------------------------------------------------------------- John A. Hill/1985(5)(7) 8,029 1,653 4,413 883 - ---------------------------------------------------------------------------------------- Ronald J. Jackson/1996(5) 4,670 1,291 2,566 691 - ---------------------------------------------------------------------------------------- Paul L. Joskow/1997(5) 4,716 1,084 2,592 574 - ---------------------------------------------------------------------------------------- Elizabeth T. Kennan/1992 4,694 1,701 2,580 909 - ---------------------------------------------------------------------------------------- John H. Mullin, III/1997(5) 4,728 1,655 2,598 877 - ---------------------------------------------------------------------------------------- Robert E. Patterson/1984 4,728 924 2,598 494 - ---------------------------------------------------------------------------------------- George Putnam, III/1984(7) 5,838 762 3,209 407 - ---------------------------------------------------------------------------------------- A.J.C. Smith/1986(6) NA 1,761 0 940 - ---------------------------------------------------------------------------------------- W. Thomas Stephens/1997(5) 4,647 1,581 2,551 804 - ---------------------------------------------------------------------------------------- Retirement Retirement benefits benefits Aggregate accrued as Aggregate accrued as Compensation part of fund Compensation part of fund from the fund expenses from the fund expenses - ---------------------------------------------------------------------------------------- Putnam International Putnam International Trustees Equity Fund Growth and Income Fund - ---------------------------------------------------------------------------------------- Jameson A. Baxter/1994(5) $6,919 $2,041 $1,465 $409 - ---------------------------------------------------------------------------------------- Charles B. Curtis/2001 6,777 1,501 1,434 305 - ---------------------------------------------------------------------------------------- John A. Hill/1985(5)(7) 11,514 2,466 2,437 493 - ---------------------------------------------------------------------------------------- Ronald J. Jackson/1996(5) 6,762 1,908 1,431 382 - ---------------------------------------------------------------------------------------- Paul L. Joskow/1997(5) 6,847 1,739 1,449 344 - ---------------------------------------------------------------------------------------- Elizabeth T. Kennan/1992 6,914 2,534 1,464 507 - ---------------------------------------------------------------------------------------- John H. Mullin, III/1997(5) 6,862 2,641 1,453 522 - ---------------------------------------------------------------------------------------- Robert E. Patterson/1984 6,862 1,370 1,453 274 - ---------------------------------------------------------------------------------------- George Putnam, III/1984(7) 8,486 1,137 1,796 227 - ---------------------------------------------------------------------------------------- A.J.C. Smith/1986(6) 0 2,618 0 524 - ---------------------------------------------------------------------------------------- W. Thomas Stephens/1997(5) 6,785 2,436 1,436 481 - ---------------------------------------------------------------------------------------- Retirement Retirement benefits benefits Aggregate accrued as Aggregate accrued as Compensation part of fund Compensation part of fund from the fund expenses from the fund expenses - ---------------------------------------------------------------------------------------- Putnam International Trustees New Opportunities Fund Putnam Investors Fund - ---------------------------------------------------------------------------------------- Jameson A. Baxter/1994(5) $1,930 $567 $5,386 $1,617 - ---------------------------------------------------------------------------------------- Charles B. Curtis/2001 1,889 452 5,279 1,233 - ---------------------------------------------------------------------------------------- John A. Hill/1985(5)(7) 3,252 672 9,087 1,938 - ---------------------------------------------------------------------------------------- Ronald J. Jackson/1996(5) 1,881 526 5,277 1,507 - ---------------------------------------------------------------------------------------- Paul L. Joskow/1997(5) 1,906 437 5,333 1,321 - ---------------------------------------------------------------------------------------- Elizabeth T. Kennan/1992 1,908 692 5,312 1,993 - ---------------------------------------------------------------------------------------- John H. Mullin, III/1997(5) 1,917 669 5,347 2,012 - ---------------------------------------------------------------------------------------- Robert E. Patterson/1984 1,917 376 5,347 1,080 - ---------------------------------------------------------------------------------------- George Putnam, III/1984(7) 2,363 310 6,601 894 - ---------------------------------------------------------------------------------------- A.J.C. Smith/1986(6) NA 717 0 2,062 - ---------------------------------------------------------------------------------------- W. Thomas Stephens/1997(5) 1,879 613 5,250 1,850 - ---------------------------------------------------------------------------------------- Retirement benefits Aggregate accrued as Compensation part of fund from the fund expenses - ---------------------------------------------------------------------------------------- Putnam Mid Cap Trustees Value Fund - ---------------------------------------------------------------------------------------- Jameson A. Baxter/1994(5) $1,397 $278 - ---------------------------------------------------------------------------------------- Charles B. Curtis/2001 1,369 203 - ---------------------------------------------------------------------------------------- John A. Hill/1985(5)(7) 2,325 337 - ---------------------------------------------------------------------------------------- Ronald J. Jackson/1996(5) 1,366 260 - ---------------------------------------------------------------------------------------- Paul L. Joskow/1997(5) 1,383 239 - ---------------------------------------------------------------------------------------- Elizabeth T. Kennan/1992 1,396 346 - ---------------------------------------------------------------------------------------- John H. Mullin, III/1997(5) 1,385 363 - ---------------------------------------------------------------------------------------- Robert E. Patterson/1984 1,385 187 - ---------------------------------------------------------------------------------------- George Putnam, III/1984(7) 1,714 155 - ---------------------------------------------------------------------------------------- A.J.C. Smith/1986(6) 0 357 - ---------------------------------------------------------------------------------------- W. Thomas Stephens/1997(5) 1,369 335 - ---------------------------------------------------------------------------------------- Retirement Retirement benefits benefits Aggregate accrued as Aggregate accrued as Compensation part of fund Compensation part of fund from the fund expenses from the fund expenses - ---------------------------------------------------------------------------------------- Putnam New Putnam New Trustees Opportunities Fund Value Fund - ---------------------------------------------------------------------------------------- Jameson A. Baxter/1994(5) $7,394 $2,254 $2,364 $666 - ---------------------------------------------------------------------------------------- Charles B. Curtis/2001 7,239 1,644 2,319 532 - ---------------------------------------------------------------------------------------- John A. Hill/1985(5)(7) 12,277 2,729 3,986 789 - ---------------------------------------------------------------------------------------- Ronald J. Jackson/1996(5) 7,218 2,109 2,319 617 - ---------------------------------------------------------------------------------------- Paul L. Joskow/1997(5) 7,310 1,939 2,342 512 - ---------------------------------------------------------------------------------------- Elizabeth T. Kennan/1992 7,385 2,803 2,330 813 - ---------------------------------------------------------------------------------------- John H. Mullin, III/1997(5) 7,330 2,942 2,347 783 - ---------------------------------------------------------------------------------------- Robert E. Patterson/1984 7,330 1,515 2,347 442 - ---------------------------------------------------------------------------------------- George Putnam, III/1984(7) 9,054 1,258 2,952 364 - ---------------------------------------------------------------------------------------- A.J.C. Smith/1986(6) 0 2,897 0 840 - ---------------------------------------------------------------------------------------- W. Thomas Stephens/1997(5) 7,251 2,716 2,304 718 - ---------------------------------------------------------------------------------------- Retirement Retirement benefits benefits Aggregate accrued as Aggregate accrued as Compensation part of fund Compensation part of fund from the fund expenses from the fund expenses - ---------------------------------------------------------------------------------------- Putnam OTC & Trustees Emerging Growth Fund Putnam Research Fund - ---------------------------------------------------------------------------------------- Jameson A. Baxter/1994(5) $3,032 $1,005 $2,603 $738 - ---------------------------------------------------------------------------------------- Charles B. Curtis/2001 2,972 747 2,552 568 - ---------------------------------------------------------------------------------------- John A. Hill/1985(5)(7) 5,113 1,211 4,388 883 - ---------------------------------------------------------------------------------------- Ronald J. Jackson/1996(5) 2,972 939 2,552 687 - ---------------------------------------------------------------------------------------- Paul L. Joskow/1997(5) 3,002 846 2,578 596 - ---------------------------------------------------------------------------------------- Elizabeth T. Kennan/1992 2,988 1,245 2,565 908 - ---------------------------------------------------------------------------------------- John H. Mullin, III/1997(5) 3,010 1,286 2,583 908 - ---------------------------------------------------------------------------------------- Robert E. Patterson/1984 3,010 674 2,583 493 - ---------------------------------------------------------------------------------------- George Putnam, III/1984(7) 3,715 558 3,190 407 - ---------------------------------------------------------------------------------------- A.J.C. Smith/1986(6) 0 1,287 0 939 - ---------------------------------------------------------------------------------------- W. Thomas Stephens/1997(5) 2,955 1,185 2,536 835 - ---------------------------------------------------------------------------------------- Retirement Retirement Retirement benefits benefits benefits Aggregate accrued as Aggregate accrued as Aggregate accrued as Compensation part of fund Compensation part of fund Compensation part of fund from the fund expenses from the fund expenses from the fund expenses - ------------------------------------------------------------------------------------------------------------------- Putnam Small Cap Putnam Small Cap Putnam Tax Smart Trustees Growth Fund Value Fund Equity Fund - ------------------------------------------------------------------------------------------------------------------- Jameson A. Baxter/1994(5) $411 $80 $1,897 $511 $872 $274 - ------------------------------------------------------------------------------------------------------------------- Charles B. Curtis/2001 403 66 1,816 313 862 227 - ------------------------------------------------------------------------------------------------------------------- John A. Hill/1985(5)(7) 685 94 3,131 640 1,469 322 - ------------------------------------------------------------------------------------------------------------------- Ronald J. Jackson/1996(5) 402 74 1,827 485 875 253 - ------------------------------------------------------------------------------------------------------------------- Paul L. Joskow/1997(5) 407 59 1,802 517 862 200 - ------------------------------------------------------------------------------------------------------------------- Elizabeth T. Kennan/1992 411 97 1,802 655 856 332 - ------------------------------------------------------------------------------------------------------------------- John H. Mullin, III/1997(5) 408 91 1,844 778 866 306 - ------------------------------------------------------------------------------------------------------------------- Robert E. Patterson/1984 408 53 1,854 351 867 181 - ------------------------------------------------------------------------------------------------------------------- George Putnam, III/1984(7) 505 44 2,230 295 1,074 148 - ------------------------------------------------------------------------------------------------------------------- A.J.C. Smith/1986(6) NA 101 NA 676 0 343 - ------------------------------------------------------------------------------------------------------------------- W. Thomas Stephens/1997(5) 403 83 1,793 725 854 280 - ------------------------------------------------------------------------------------------------------------------- Retirement Retirement benefits benefits Aggregate accrued as Aggregate accrued as Compensation part of fund Compensation part of fund from the fund expenses from the fund expenses - ---------------------------------------------------------------------------------------- Putnam Utilities Growth Trustees and Income Fund Putnam Vista Fund - ---------------------------------------------------------------------------------------- Jameson A. Baxter/1994(5) $1,396 $451 $4,552 $1,344 - ---------------------------------------------------------------------------------------- Charles B. Curtis/2001 1,380 371 4,463 1,025 - ---------------------------------------------------------------------------------------- John A. Hill/1985(5)(7) 2,351 531 7,676 1,611 - ---------------------------------------------------------------------------------------- Ronald J. Jackson/1996(5) 1,401 417 4,462 1,253 - ---------------------------------------------------------------------------------------- Paul L. Joskow/1997(5) 1,381 332 4,507 1,098 - ---------------------------------------------------------------------------------------- Elizabeth T. Kennan/1992 1,370 547 4,487 1,657 - ---------------------------------------------------------------------------------------- John H. Mullin, III/1997(5) 1,386 510 4,519 1,671 - ---------------------------------------------------------------------------------------- Robert E. Patterson/1984 1,387 298 4,519 898 - ---------------------------------------------------------------------------------------- George Putnam, III/1984(7) 1,719 245 5,579 743 - ---------------------------------------------------------------------------------------- A.J.C. Smith/1986(6) NA 566 NA 1,713 - ---------------------------------------------------------------------------------------- W. Thomas Stephens/1997(5) 1,367 465 4,436 1,537 - ---------------------------------------------------------------------------------------- Retirement Estimated benefits annual benefits Total Aggregate accrued as from all Putnam compensation Compensation part of fund funds upon from all from the fund expenses retirement Putnam funds - ---------------------------------------------------------------------------------------- Trustees Putnam Voyager Fund For All Funds - ---------------------------------------------------------------------------------------- Jameson A. Baxter/1994(5) $10,472 $3,114 $215,500 $100,000 - ---------------------------------------------------------------------------------------- Charles B. Curtis/2001 10,266 2,372 210,250 100,000 - ---------------------------------------------------------------------------------------- John A. Hill/1985(5)(7) 17,658 3,734 413,625 200,000 - ---------------------------------------------------------------------------------------- Ronald J. Jackson/1996(5) 10,264 2,902 214,500 100,000 - ---------------------------------------------------------------------------------------- Paul L. Joskow/1997(5) 10,368 2,547 215,250 100,000 - ---------------------------------------------------------------------------------------- Elizabeth T. Kennan/1992 10,320 3,840 207,000 100,000 - ---------------------------------------------------------------------------------------- John H. Mullin, III/1997(5) 10,395 3,878 208,750 100,000 - ---------------------------------------------------------------------------------------- Robert E. Patterson/1984 10,395 2,080 206,500 100,000 - ---------------------------------------------------------------------------------------- George Putnam, III/1984(7) 12,832 1,721 260,500 125,000 - ---------------------------------------------------------------------------------------- A.J.C. Smith/1986(6) 0 3,970 0 93,333 - ---------------------------------------------------------------------------------------- W. Thomas Stephens/1997(5) 10,205 3,568 206,500 100,000 - ----------------------------------------------------------------------------------------
(1) Includes an annual retainer and an attendance fee for each meeting attended. ** Reflects total payments received from all Putnam funds(2) Assumes that each Trustee retires at the normal retirement date. For Trustees who are not within three years of retirement, estimated benefits for each Trustee are based on Trustee fee rates in the most recenteffect during calendar year.2003. (3) As of December 31, 1995,2003, there were 99101 funds in the Putnam family. ***For Mr. Hill, amounts shown also include compensation for service as a trustee of TH Lee, Putnam Emerging Opportunities Portfolio, a closed-end fund advised by an affiliate of Putnam Management. (4) Includes amounts (ranging from $2,000 to $11,000 per Trustee) for which the Putnam funds were reimbursed by Putnam Management for special Board and committee meetings in connection with certain regulatory and other matters relating to alleged improper trading by certain Putnam Management employees and participants in certain 401(k) plans administered by Putnam Fiduciary Trust Company. (5) Includes compensation deferred pursuant to a Trustee Compensation Deferral Plan. TheAs of the dates indicated below, the total amountamounts of deferred compensation payable to Mr. Hill by all Putnam funds as of December 31, 1995 was $51,141,the fund, including income earned on such amounts. *** Electedamounts, were as a Trusteefollows:
Putnam Putnam Putnam Putnam Putnam Asset Asset Asset Capital Capital Allocation: Allocation: Allocation: Appre- Oppor- Balanced Conservative Growth ciation tunities Portfolio Portfolio Portfolio Fund Fund (Sept. 30, (Sept. 30, (Sept. 30, (May 31, (April 30, 2003) 2003) 2003) 2003) 2003) - -------------------------------------------------------------------------------------------------- Baxter $5,888 $1,165 $4,963 $8,909 $905 - -------------------------------------------------------------------------------------------------- Hill 16,268 3,219 13,712 23,602 2,398 - -------------------------------------------------------------------------------------------------- Jackson 8,290 1,640 6,988 11,914 1,211 - -------------------------------------------------------------------------------------------------- Joskow 6,216 1,230 5,240 9,069 921 - -------------------------------------------------------------------------------------------------- Mullin 6,735 1,332 5,677 10,207 1,037 - -------------------------------------------------------------------------------------------------- Stephens 2,645 523 2,229 3,993 406 - -------------------------------------------------------------------------------------------------- The Putnam Putnam Putnam Putnam Putnam George Classic Convertible Discovery Equity Europe Putnam Equity Income- Growth Income Equity Fund Fund Growth Trust Fund Fund Fund of Boston (Nov. 30, (Oct. 31, (Dec, 31, (Nov. 30, (June 30, (July 31, 2003) 2003) 2003) 2003) 2003) 2003) - ------------------------------------------------------------------------------------------------------------------ Baxter $9,991 $6,665 $10,668 $7,353 $6,392 $19,003 - ------------------------------------------------------------------------------------------------------------------ Hill 28,685 19,137 30,722 21,111 16,933 52,508 - ------------------------------------------------------------------------------------------------------------------ Jackson 14,722 9,826 15,756 10,835 8,552 26,755 - ------------------------------------------------------------------------------------------------------------------ Joskow 10,871 7,249 11,624 8,000 6,513 20,034 - ------------------------------------------------------------------------------------------------------------------ Mullin 11,421 7,621 12,193 8,406 7,321 21,753 - ------------------------------------------------------------------------------------------------------------------ Stephens 4,484 2,993 4,798 3,300 2,870 8,528 - ------------------------------------------------------------------------------------------------------------------ The Putnam Putnam Putnam Putnam Global Fund for Growth Putnam Global Natural Growth Oppor- Health Equity Resources and tunities Sciences Fund Fund Income Fund Trust (Oct. 31, (Aug. 31, (Oct. 31, (July 31, (Aug. 31, 2003) 2003) 2003) 2003) 2003) - -------------------------------------------------------------------------------------------------- Baxter $22,888 $616 $75,982 $7,336 $15,201 - -------------------------------------------------------------------------------------------------- Hill 65,719 1,702 218,171 20,270 42,001 - -------------------------------------------------------------------------------------------------- Jackson 33,745 867 112,025 10,328 21,393 - -------------------------------------------------------------------------------------------------- Joskow 24,894 650 82,644 7,734 16,033 - -------------------------------------------------------------------------------------------------- Mullin 26,171 705 86,881 8,397 17,397 - -------------------------------------------------------------------------------------------------- Stephens 10,277 276 34,117 3,292 6,817 - -------------------------------------------------------------------------------------------------- Putnam Putnam Inter- Inter- Putnam Putnam national national International Inter- Growth New Capital national and Oppor- Putnam Opportunities Equity Income tunities Investors Fund Fund Fund Fund Fund (Aug. 31, (June 30, (June 30, (Sept. 30, (July 31, 2003) 2003) 2003) 2003) 2003) - -------------------------------------------------------------------------------------------------- Baxter $1,730 $18,253 $2,767 $8,719 $17,124 - -------------------------------------------------------------------------------------------------- Hill 4,780 48,351 7,328 24,088 47,316 - -------------------------------------------------------------------------------------------------- Jackson 2,435 24,419 3,701 12,275 24,109 - -------------------------------------------------------------------------------------------------- Joskow 1,825 18,598 2,819 9,205 18,053 - -------------------------------------------------------------------------------------------------- Mullin 1,980 20,903 3,168 9,973 19,602 - -------------------------------------------------------------------------------------------------- Stephens 776 8,195 1,242 3,916 7,684 - -------------------------------------------------------------------------------------------------- Putnam Putnam Putnam New Putnam OTC & Mid Cap Oppor- New Emerging Value tunities Value Growth Fund Fund Fund Fund (April 30, (June 30, (Aug. 31, (July 31, 2003) 2003) 2003) 2003) - -------------------------------------------------------------------------------------------------- Baxter $652 $51,699 $4,404 $16,520 - -------------------------------------------------------------------------------------------------- Hill 1,727 136,866 12,170 45,647 - -------------------------------------------------------------------------------------------------- Jackson 872 69,123 6,199 23,259 - -------------------------------------------------------------------------------------------------- Joskow 663 52,645 4,646 17,416 - -------------------------------------------------------------------------------------------------- Mullin 747 59,171 5,041 18,910 - -------------------------------------------------------------------------------------------------- Stephens 292 23,197 1,975 7,413 - -------------------------------------------------------------------------------------------------- Putnam Utilities Putnam Putnam Growth Putnam Small Cap Small Cap Putnam and Putnam Research Growth Value Tax Smart Income Vista Fund Fund Fund Equity Fund Fund Fund (July 31, (June 30, (Feb. 29, (Oct. 31, (Oct. 31, (July 31, 2003) 2003) 2003) 2003) 2003) 2003) - ------------------------------------------------------------------------------------------------------------------ Baxter $1,710 $179 $830 $709 $7,024 $19,769 - ------------------------------------------------------------------------------------------------------------------ Hill 4,725 474 2,108 2,035 20,168 54,625 - ------------------------------------------------------------------------------------------------------------------ Jackson 2,408 240 1,054 1,045 10,356 27,834 - ------------------------------------------------------------------------------------------------------------------ Joskow 1,803 182 815 771 7,640 20,842 - ------------------------------------------------------------------------------------------------------------------ Mullin 1,957 205 953 811 8,031 22,630 - ------------------------------------------------------------------------------------------------------------------ Stephens 767 80 372 318 3,154 8,871 - ------------------------------------------------------------------------------------------------------------------ Putnam Voyager Fund (July 31, 2003) - -------------------------------------------------------------------------------------------------- Baxter $58,337 - -------------------------------------------------------------------------------------------------- Hill 161,193 - -------------------------------------------------------------------------------------------------- Jackson 82,134 - -------------------------------------------------------------------------------------------------- Joskow 61,502 - -------------------------------------------------------------------------------------------------- Mullin 66,778 - -------------------------------------------------------------------------------------------------- Stephens 26,179 - --------------------------------------------------------------------------------------------------
(6) Since July 1, 2000, Marsh & McLennan Companies, Inc. has compensated Mr. Smith for his service as Trustee. The estimated annual retirement benefits shown in April 1995. Forthis table for Mr. Smith reflect benefits earned under the calendar year endedfunds' retirement plan prior to July 1, 2000. (7) Includes additional compensation to Messrs. Hill and Putnam for service as Chairman of the Trustees and President of the Funds, respectively. (8) Putnam Floating Rate Income Fund and Putnam Prime Money Market Fund commenced operations after December 31, 1994, Dr. Shapiro received $38,577 in retirement benefits from the Putnam funds in respect of his prior service as2003. Under a Trustee from 1984 to 1989, which benefits terminated at the end of 1994. Your fund's Trustees have approved Retirement GuidelinesPlan for Trustees of the Putnam funds. These guidelines provide generally that afunds (the "Plan"), each Trustee who retires after reaching age 72 and who haswith at least 10five years of continuous service will be eligibleas a Trustee of the funds is entitled to receive aan annual retirement benefit from each Putnam fund for which he or she served as a Trustee. The amount and form of such benefit is subject to determination annually by the Trustees and, unless otherwise determined by the Trustees, will be an annual cash benefit payable for life equal to one-half of the average annual compensation paid to such Trustee retainer feesfor the last three years of service prior to retirement. This retirement benefit is payable during a Trustee's lifetime, beginning the year following retirement, for a number of years equal to such Trustee's years of service. A death benefit, also available under the Plan, assures that the Trustee and his or her beneficiaries will receive benefit payments for the lesser of an aggregate period of (i) ten years or (ii) such Trustee's total years of service. The Plan Administrator (a committee comprised of Trustees that are not "interested persons" of the fund, as defined in the 1940 Act) may terminate or amend the Plan at any time, but no termination or amendment will result in a reduction in the amount of benefits (i) currently being paid by each fundto a Trustee at the time of retirement. Several retired Trustees are currently receiving benefits pursuantsuch termination or amendment, or (ii) to the Guidelines and it is anticipated that thewhich a current Trustees will receive similar benefits upon their retirement. A Trustee who retired in calendar 1995 and was eligible to receive benefits under these Guidelines would have received an annual benefitbeen entitled had he or she retired immediately prior to such termination or amendment. 2. Adoption of $66,749, based upon the aggregate retainer fees paid by the Putnam funds for such year. The Trustees reserve the right to amend or terminate such Guidelines and the related payments at any time, and may modify or waive the foregoing eligibility requirements when deemed appropriate. For additional information about your fund, including further information about its Trustees and officers, please see "Further information about your fund," on page . PUTNAM INVESTMENTS PutnamStandardized Fundamental Investment Management, Inc. and its affiliates, Putnam Mutual Funds, the principal underwriter for shares of your fund and Putnam Fiduciary Trust Company, your fund's investor servicing agent and custodian, are wholly owned by Putnam Investments, Inc., One Post Office Square, Boston, Massachusetts 02109, a holding company that is in turn wholly owned by Marsh & McLennan Companies, Inc., which has executive offices at 1166 Avenue of the Americas, New York, New York 10036. Marsh & McLennan Companies, Inc., and its operating subsidiaries are professional services firms with insurance and reinsurance brokering, consulting, and investment management businesses. 2. SELECTION OF INDEPENDENT AUDITORS Price Waterhouse LLP, 160 Federal Street, Boston, Massachusetts, independent accountants, has been selected by the Trustees as auditors of your fund for the current fiscal year. Among the country's preeminent accounting firms, this firm also serves as the auditor for approximately half of the other funds in the Putnam family. It was selected primarily on the basis of its expertise as auditors of investment companies, the quality of its audit services, and the competitiveness of the fees charged for these services. A majority of the votes on the matter is necessary to ratify the selection of auditors. A representative of the independent auditors is expected to be present at the meeting to make statements and to respond to appropriate questions. 3. PROPOSALS 3.A.-K.Restrictions As described in the following proposals, the Trustees are recommendingrecommend that shareholders of the affected funds approve a numberthe elimination of changesand revisions to the fund'scertain fundamental investment restrictions includingcurrently observed by such funds. Generally, the elimination of certain restrictions. The purpose of these proposed changes is to increase theeach fund's investment flexibility and reduce administrative and compliance burdens by simplifying and making uniform these fundamental investment restrictions. Background. The 1940 Act requires registered investment companies like the funds to bring the fund's policies more in line with thosehave "fundamental" investment restrictions governing certain of manyits investment practices. Investment companies may also voluntarily designate restrictions relating to other Putnam funds. These changes largely reflect theinvestment practices as fundamental. "Fundamental" investment restrictions can be changed only by a shareholder vote. The proposed elimination of and revisions to certain restrictive policies which were required at one time by various state securities authorities but which are no longer required under current regulations. Some of the fundamental investment restrictions of the funds are discussed below. By eliminating those fundamental investment restrictions that are proposed to be changednot required and revising those fundamental investment restrictions that are incorporated in the fund's Agreement and Declaration of Trust (the "Declaration of Trust") and, as a result, may only be modified by vote of a majority of the fund's outstanding shares. This voting requirement is stricter than that imposed by the Investment Company Act of 1940, as amended (the "1940 Act"). The higher voting threshold required, by the Declaration of the Trust may impose greater proxy solicitation costs on the fund in the event that it becomes necessary or desirable to revise these restrictions in the future. As a result, as indicated below, the Trustees are also recommendingbelieve that allPutnam Management will be better able to manage the funds in a changing regulatory or investment environment. In addition, the process of thesemonitoring the funds' compliance with investment restrictions will be removed fromsimplified. To the Declaration of Trust. Theextent multiple proposals apply to the same fund, the adoption of any of these proposals is not contingent on the adoption of any other proposal. 3.A. AMENDING THE DECLARATION OF TRUST WITH RESPECT TO DIVERSIFICATION OF INVESTMENTS.2.A. Amending Fundamental Investment Restrictions with Respect to Borrowing. Affected funds: Putnam Asset Allocation: Balanced Portfolio Putnam Asset Allocation: Conservative Portfolio Putnam Asset Allocation: Growth Portfolio Putnam Capital Appreciation Fund Putnam Classic Equity Fund Putnam Convertible Income-Growth Trust Putnam Discovery Growth Fund Putnam Equity Income Fund Putnam Europe Equity Fund The George Putnam Fund of Boston Putnam Global Equity Fund Putnam Global Natural Resources Fund The Putnam Fund for Growth and Income Putnam Growth Opportunities Fund Putnam Health Sciences Trust Putnam International Capital Opportunities Fund Putnam International Equity Fund Putnam International Growth and Income Fund Putnam International New Opportunities Fund Putnam Investors Fund Putnam New Opportunities Fund Putnam New Value Fund Putnam OTC & Emerging Growth Fund Putnam Research Fund Putnam Utilities Growth and Income Fund Putnam Vista Fund Putnam Voyager Fund The Trustees are recommending that each affected fund's fundamental investment restriction with respect to borrowing be revised to reflect the standard restriction expected to be used by other Putnam funds. Under the 1940 Act, a fund may borrow up to 33 1/3% of its total assets. Generally, each of the affected fund's current restriction is more restrictive. Exhibit B lists the current fundamental investment restrictions with respect to borrowing of each of the affected funds. The proposed fundamental investment restriction relatingis set forth below: "The fund may not. . . [b]orrow money in excess of 33 1/3% of the value of its total assets (not including the amount borrowed) at the time the borrowing is made." If the proposed change is approved, each affected fund will not be restricted to borrowing only for redemption requests or for extraordinary or emergency purposes, and would not be limited to borrowing only from banks. The new restriction would not prohibit an affected fund from borrowing for leveraging purposes, although Putnam Management currently has no intention of borrowing for such purposes. If a fund were to borrow money, its net assets would tend to increase or decrease to a greater extent with market changes than if the fund had not borrowed money. Putnam Management believes that this enhanced flexibility could assist each affected fund in achieving its investment objective. In circumstances in which an affected fund's available cash is not sufficient to meet, among other things, shareholder redemptions, Putnam Management believes that it may be advantageous at times for an affected fund to borrow money instead of raising cash by selling its portfolio securities, which could be disruptive to the fund's investment strategy. In a separate proposal (see Proposal 2.B. below), shareholders of these affected funds are being asked to approve an amendment to each affected fund's restriction on lending. The proposed revisions would, subject to the limitations discussed below, permit an affected fund to participate in an "interfund lending program," which would allow the fund, through a master loan agreement, to lend available cash to and borrow from other Putnam funds. As stated above, certain of the affected funds may currently borrow money only from banks. Each affected fund would be able to borrow money under the interfund lending program only if the interest rate on the loan is more favorable to the fund than the interest rates otherwise available for short-term bank loans, as well as being more favorable to the lending fund than available repurchase agreement rates. Putnam Management believes that the ability to engage in such borrowing transactions will allow an affected fund to pay lower interest rates on its borrowings. An affected fund could, in certain circumstances, have its loan recalled by a lending fund on one day's notice. In these circumstances, the fund might have to borrow from a bank at a higher interest rate if loans were not available from other Putnam funds. The Putnam funds have received an exemptive order from the SEC which permits interfund lending between Putnam funds so long as certain conditions are satisfied. Required Vote. Approval of this proposal requires the affirmative vote of the lesser of (1) more than 50% of the outstanding shares of the affected fund, or (2) 67% or more of the shares of the affected fund present at the meeting if more than 50% of the outstanding shares of such affected fund are present at the meeting in person or by proxy. 2.B. Amending Fundamental Investment Restrictions with Respect to Making Loans. Affected funds: Putnam Asset Allocation: Balanced Portfolio Putnam Asset Allocation: Conservative Portfolio Putnam Asset Allocation: Growth Portfolio Putnam Capital Appreciation Fund Putnam Classic Equity Fund Putnam Convertible Income-Growth Trust Putnam Discovery Growth Fund Putnam Equity Income Fund Putnam Europe Equity Fund The George Putnam Fund of Boston Putnam Global Equity Fund Putnam Global Natural Resources Fund The Putnam Fund for Growth and Income Putnam Growth Opportunities Fund Putnam Health Sciences Trust Putnam International Capital Opportunities Fund Putnam International Equity Fund Putnam International Growth and Income Fund Putnam International New Opportunities Fund Putnam Investors Fund Putnam New Opportunities Fund Putnam New Value Fund Putnam OTC & Emerging Growth Fund Putnam Research Fund Putnam Utilities Growth and Income Fund Putnam Vista Fund Putnam Voyager Fund The Trustees are recommending that each affected fund's fundamental investment restriction with respect to making loans be revised to reflect the standard restriction used by other Putnam funds, to remove any limitations on each affected fund's ability to enter into repurchase agreements and securities loans, and to clarify that each affected fund is permitted (subject to the limitation discussed above) to participate in the proposed interfund lending program described in Proposal 2.A. Each affected fund currently has one of the following investment restrictions which states that such affected fund may not: "Make loans, except by purchase of debt obligations in which the fund may invest consistent with its investment policies, by entering into repurchase agreements, or by lending its portfolio securities." (All affected funds except Putnam Classic Equity Fund, Putnam Growth Opportunities Fund, Putnam International Capital Opportunities Fund, Putnam International New Opportunities Fund, Putnam New Value Fund and Putnam Research Fund.) OR "Make loans, except by purchase of debt obligations in which the fund may invest consistent with its investment policies, by entering into repurchase agreements with respect to not more than 25% of its total assets (taken at current value) or through the lending of its portfolio securities with respect to no more than 25% of its total assets (taken at current value)." (Putnam Classic Equity Fund, Putnam Growth Opportunities Fund, Putnam International Capital Opportunities Fund, Putnam International New Opportunities Fund, Putnam New Value Fund and Putnam Research Fund.) The proposed amended fundamental investment restriction is set forth below: "The fund may not. . . [m]ake loans, except by purchase of debt obligations in which the fund may invest consistent with its investment policies, by entering into repurchase agreements, or by lending its portfolio securities." Following the amendment, each affected fund may, consistent with its investment objective and policies and applicable law, enter into repurchase agreements and securities loans without limit. Putnam Management believes that this increased investment flexibility could assist each affected fund in achieving its investment objective. When a fund enters into a repurchase agreement, it typically purchases a security for a relatively short period (usually not more than one week), which the seller agrees to repurchase at a fixed time and price, representing the fund's cost plus interest. When a fund enters into a securities loan, it lends certain of its portfolio securities to broker-dealers or other parties, typically in exchange for a portion of the interest earned on the collateral posted by the borrower. These transactions must be fully collateralized at all times, but involve some risk to the fund if the borrower should default on its obligation. If the borrower in these transactions should become involved in bankruptcy insolvency proceedings, it is possible that the fund may be treated as an unsecured creditor and be required to return the underlying collateral to the other party's estate. If the proposal is approved, each affected fund would be able to participate in an interfund lending program and make loans to other Putnam funds for short-term purposes. As discussed in Proposal 2.A, a fund would only make loans under the program if it could receive an interest rate higher than those available for repurchase agreements. There is a risk that a fund could experience a delay in obtaining prompt repayment of a loan and, unlike repurchase agreements, the fund would not necessarily have received collateral for its loan. A delay in obtaining prompt payment could cause a fund to miss an investment opportunity or to incur costs to borrow money to replace the delayed payment. Required vote. Approval of this proposal requires the affirmative vote of the lesser of (1) more than 50% of the outstanding shares of each affected fund, or (2) 67% or more of the shares of each affected fund present at the meeting if more than 50% of the outstanding shares of such fund are present at the meeting in person or by proxy. 2.C. Amending Fundamental Investment Restrictions with Respect to Diversification of Investments. Affected funds: All funds. The Trustees recommend that each affected fund's fundamental investment restriction with respect to the diversification of its investments be revised to grantreflect the fund the maximum investment flexibility permittedstandard restriction expected to be used by the 1940 Act.other Putnam funds, depending on whether the affected fund is a "diversified" fund or a "non-diversified" fund. Under the 1940 Act, the fund, as a diversified"diversified" fund generally may not, with respect to 75% of its total assets, invest more than 5% of its total assets in the securities of any one issuer (except U.S. government securities)securities, cash, cash items or the securities of other regulated investment companies). The remaining 25% of the fund's total assets is not subject to this restriction. The fund's current investmentA "non-diversified" fund is not subject to the 1940 Act restriction discussed above, but is more restrictive, and states that: "[t]he Trustees shall be limited inonly subject to the purchaserules under the Internal Revenue Code of securities or obligations1986, as amended (the "Code"), which require that a fund diversify its holdings at the end of each fiscal quarter such that, with respect to an investment which shall not exceed five percent (5%)50% of the liquidating valuefund's total assets, the fund does not have more than 5% of its total assets invested in any one issuer. The remaining 50% of the Trust property atfund's assets is not subject to this 5% limitation, although with respect to that portion of its assets the timefund may not invest more than 25% in any issuer. Neither of suchthese Code requirements applies to U.S. government securities, cash, cash items or the securities of other regulated investment ....companies. Exhibit C lists the current fundamental investment restrictions with respect to diversification of investments of each of the affected funds. The above limitations shall not apply, however, to investments in government or municipal securities or obligations." Theproposed amended fundamental investment restriction isrestrictions are set forth below.below: "The fund may not ... With[w]ith respect to 75%50% of its total assets, invest in securities of any issuer if, immediately after such investment, more than 5% of the total assets of the fund (taken at current value) would be invested in the securities of such issuer; provided that this limitation does not apply to obligations issued or guaranteed as to interest or principal by the U.S. government or its agencies or instrumentalities.instrumentalities or to securities issued by other investment companies." (Putnam Health Sciences Trust only.) OR "The fund may not ... [w]ith respect to 75% of its total assets, invest in securities of any issuer if, immediately after such investment, more than 5% of the total assets of the fund (taken at current value) would be invested in the securities of such issuer; provided that this limitation does not apply to obligations issued or guaranteed as to interest or principal by the U.S. government or its agencies or instrumentalities or to securities issued by other investment companies." (For all funds except Putnam Health Sciences Trust.) If the proposed change is approved, theeach affected fund will continue to be able to invest up to 25% of its total assets in the securities of any one issuer. The amended restrictionrestrictions would continue to exclude from its limitations U.S. government securities, but not municipalcash and cash items, and would also exclude from its limitations securities which cannot be excluded from such limitations under current law. Following the amendment, the fund would continue to be a diversifiedof other investment company for purposes of the 1940 Act.companies. The proposed amendment will enable thechanges would not result in a "diversified" fund becoming a "non-diversified" fund, or a "non-diversified" fund becoming a "diversified" fund. The purpose of these proposed changes is to reduce administrative and compliance burdens by simplifying and making uniform these fundamental investment restrictions with respect to diversification. The proposed revisions would also permit each affected fund to invest in shares of Putnam money market funds, Putnam short-term bond funds or other Putnam entities that operate as cash management investment vehicles in excess of the limitations discussed above, by excluding from these limitations securities of other investment companies. The Putnam funds have received an exemptive order from the SEC which permits "cash sweep" arrangements in which a greater percentagefund invests all or a portion of its assets in the securities of issuers Putnam Management believes offer the potential for capital growth, current income or both. However, during times when Putnam Management invests a higher percentage of the fund's assets in one or more issuers, the value of the fund's shares may fluctuate more widely than the value of shares of a portfolio investingavailable cash in a larger number of issuers. In connection with these proposed changes, the Trustees are also recommending that the Declaration of Trust be amended to remove this restriction. Currently, the affirmative vote of a majority of the fund's outstanding shares is required to amend the Declaration of Trust and change thisPutnam cash management investment restriction. Once this restriction is removed from the Declaration of Trust, it may be modified or eliminated by the fund with the affirmative vote of the lesser of (1) more than 50% of the outstanding shares of the fund, or (2) 67% or more of the shares of the fund present at a meeting if more 50% of the outstanding shares of the fund are present at the meeting by person or proxy. REQUIRED VOTE. Approval of the proposal to amend the fundamental investment restriction and remove it from the Declaration of Trust requires the affirmative vote of the majority of the outstanding shares of the fund. 3.B. AMENDING THE DECLARATION OF TRUST WITH RESPECT TO INVESTMENTS IN ISSUERS THAT HAVE BEEN IN OPERATION FOR LESS THAN THREE YEARS. The Trustees are recommending that the Declaration of Trust be amended to eliminate the fund's fundamental investment restriction which limits the fund's investments in issuers with limited operating histories. The restriction states as follows: "nor shall the Trustees invest more than five percent (5%) of the liquidating value of the Trust property in the securities of any issuer that together with any predecessor thereof has been in continuous operation for less than three (3) years" The fund adopted this restriction to comply with certain state securities law requirements, and the restriction is currently required by only one state. If this proposal is approved, the Trustees intend to replace this restriction with a substantially similar non-fundamental investment restriction to comply with the remaining state requirement. Consistent with this state requirement, the restriction will exempt certain U.S. government securities from its limitations to provide the fund maximum flexibility. The new non-fundamental restriction is set forth below. "The fund may not ... Invest in securities of an issuer which, together with any predecessors, controlling persons, general partners and guarantors, have a record of less than three years' continuous business operation or relevant business experience, if,vehicle, such as a result, the aggregate of such investments would exceed 5% of the value of the fund's net assets; provided, however, that this restriction shall not apply to any obligations of the U.S. government or its instrumentalities or agencies." Putnam Management recommended to the Trustees making this policy non-fundamental to provide themoney market fund, with maximum flexibility to modify or eliminate the policy if no longer required under state law. If the restriction were no longer required, the Trustees could change or eliminate the restriction to increase the fund's investment flexibility without the need for further shareholder approval. If the restriction were eliminatedrather than directly in the future, the fund would have the ability to invest in companies which have been in operation for less than three years. This would include start-up companies and other companies with limited operating histories, many of which would have relatively small equity market capitalizations (e.g., under $1 billion). Although these companies may provide greater opportunities for capital growth, they also involve greater risk. These companies often have limited product lines, markets or financial resources. They may trade less frequently and in limited volume, and only in the over-the-counter market or on a regional securities exchange. As a result, the securities of these companies may fluctuate in value more than those of larger, more established companies. REQUIRED VOTE. Approval of the proposal requires the affirmative vote of the majority of the outstanding shares of the fund. 3.C. AMENDING THE DECLARATION OF TRUST WITH RESPECT TO THE PURCHASE OF CERTAIN ILLIQUID SECURITIES. The Trustees are recommending that the Declaration of Trust be amended to eliminate the fundamental investment restriction which limits the fund's investments in equity securities for which market quotations are not readily available. The restriction states as follows: "nor shall the Trustees invest more than five percent (5%) of the liquidating value of the Trust property ... in equity securities of issuers for which market quotations are not readily available (but excluding from such 5% securities the disposition of which is restricted by federal securities laws)" Putnam Management recommended to the Trustees eliminating this fundamental restriction because it believes the restriction is no longer necessary in light of current regulatory requirements. The Staff of the Securities and Exchange Commission ("SEC") currently takes the position that an illiquid security is a security for which market quotations are not readily available. This Staff position is contained in the fund's non-fundamental investment restriction on illiquid securities, which prohibits the fund from investing more than 15% of its net assets in (a) securities which are not readily marketable, (b) securities restricted as to resale (excluding securities determined by the Trustees or their designees to be readily marketable), and (c) repurchase agreements maturing in more than seven days. Unlike the current fundamental investment restriction, this non-fundamental investment restriction applies to all types of investments, not just equity securities, and also includes other types of illiquid investments, such as repurchase agreements. Putnam Management also believes that the fund may benefit from the added flexibility of having the fund's policy with respect to illiquid securities contained in a single non-fundamental investment restriction. In the future, the fund will be able to respond more quickly to legal, regulatory and market developments regarding illiquid securities because further shareholder approval will not be required to bring the policy in line with these developments.short-term instruments. If the proposed change is approved, theeach affected fund to the extent consistent with its current non-fundamental restriction on investments in illiquid securities, will be able to invest a greater percentage of its assets in equity securities for which market quotations are not readily available. Investments in these securities may make it more difficult for the fundup to determine the fair value of such securities for purposes of computing the fund's net asset value. REQUIRED VOTE. Approval of the proposal requires the affirmative vote of the majority of the outstanding shares of the fund. 3.D. AMENDING THE DECLARATION OF TRUST WITH RESPECT TO INVESTMENTS IN SECURITIES OF ISSUERS IN WHICH MANAGEMENT OF THE FUND OR PUTNAM MANAGEMENT OWNS SECURITIES. The Trustees are recommending that the Declaration of Trust be amended to eliminate the fundamental investment restriction which states that: "[t]he Trustees shall not invest in or retain in the portfolio of the Trust the securities of any issuer if officers and Trustees of the Trust and officers and directors of the Managers ... who beneficially own more than one-half of one percent (1/2 of 1%) of the shares or securities of that issuer together own more than five percent (5%)" This restriction was originally adopted to address state securities law requirements, and the restriction is currently required by only one state. If this proposal is approved, the Trustees intend to replace this fundamental restriction with an identical non- fundamental investment restriction to comply with the state requirement. The text of this proposed non-fundamental restriction is set forth below. "The fund may not ... Invest in any securities of any company, if to the knowledge of the fund officers and Trustees of the fund and officers and directors of Putnam Management who beneficially own more than 0.5% of the shares or securities of that company together own more than 5%." Putnam Management recommended to the Trustees making this policy non-fundamental to provide the fund with maximum flexibility to modify or eliminate the policy if no longer required under state law. If the restriction were no longer required, the Trustees could eliminate the restriction to increase the fund's investment flexibility without the need for further shareholder approval. REQUIRED VOTE. Approval of the proposal requires the affirmative vote of the majority of the outstanding shares of the fund. 3.E. AMENDING THE DECLARATION OF TRUST WITH RESPECT TO OWNING 10% OF THE SECURITIES OF A SINGLE ISSUER. The Trustees are recommending that the fund's fundamental investment restriction with respect to investment in the securities of a single issuer be revised to grant the fund the maximum flexibility permitted under the 1940 Act. The 1940 Act prohibits a diversified fund such as the fund from investing, with respect to 75%25% of its total assets in a Putnam money market fund or other Putnam cash management investment vehicle, in accordance with the securities of an issuer if as a result it would own more than 10% of the outstanding voting securities of that issuer. The fund's current investment restriction, which is more restrictive than the 1940 Act, states that: "[t]he Trustees ... shall be further limited to an investment in any one corporation or association of not exceeding ten percent (10%) of the stock or securities or ten percent (10%) of the outstanding voting securities or ten percent (10%) of the securities of any class of such corporation or association. The above limitations shall not apply, however, to investments in government or municipal securities or obligations." The amended fundamental investment restriction isconditions set forth below. "The fund may not ... With respect to 75% of its assets, acquire more than 10% ofin the voting securities of any issuer." Putnam Management recommended the proposed change to the Trustees because it believes that the fund's current restriction is overbroad and unnecessarily restrictive. Putnam Management has advised the Trustees that the current restriction could prevent the fund from investing in certain opportunities to the fullest extent thatSEC exemptive order. Putnam Management believes that use of a Putnam money market fund or other Putnam cash management investment vehicle to invest an affected fund's uninvested cash and cash collateral from securities lending arrangements may achieve greater efficiencies, reduce fund management expenses and increase returns. Moreover, use of a Putnam money market fund or other Putnam cash management investment vehicle in these instances would best servepermit an affected fund's management team to focus on the fund's investment objective. Putnam Management also believes that limiting this restriction to voting securities and 75%management of the fund's assets will enhance investment flexibility. To the extent the fund individually or with other funds and accounts managed by Putnam Management or its affiliates owns all or a major portion of the outstanding securities of a particular issuer (or of a particular class of an issuer's securities), under adverse market or economic conditions or in the event of adverse changes in the financial condition of the issuer the fund could find it more difficult to sell these securities when Putnam Management believes it advisable to do so, or may be able to sell the securities only at prices lower than if they were more widely held. In addition, certain of the companies in which the fund may invest following the amendment could have relatively small equity market capitalizations (e.g.. under $1 billion). Such companies often have limited product lines, markets or financial resources. They may trade less frequently and in limited volume, and only in the over-the-counter market or on a regional securities exchange. As a result, the securities of these companies may fluctuate in value more than those of larger, more established companies. Under such circumstances, it may also be more difficult to determine the fair value of such securities for purposes of computing the fund's net asset value. In connection with this proposed change, the Trustees also are recommending that the Declaration of Trust be amended to remove the restriction. Currently, the affirmative vote of a majority of the fund's outstanding shares is required to amend the Declaration of Trust and change this restriction. Once this restriction is removed from the Declaration of Trust, it may be modified or eliminated by the fund with the affirmative vote of the lesser of (1) more than 50% of the outstanding shares of the fund, or (2) 67% or more of the shares of the fund present at a meeting if more 50% of the outstanding shares of the fund are present at the meeting by person or proxy. REQUIRED VOTE. Approval of the proposal to amend the fundamental investment restriction and remove it from the Declaration of Trust requires the affirmative vote of the majority of the outstanding sharesprincipal investments of the fund. 3.F. AMENDING THE FUND'S FUNDAMENTAL INVESTMENT RESTRICTIONS RELATING TO INVESTMENTS IN REAL ESTATE. The Trustees are recommending that the fund's current fundamental investment restrictions relating to investments in real estate be revised to grant the fund the maximum flexibility in light of current regulatory requirements. In connection with this proposal, the Trustee's are recommending that the fund's fundamental restriction which prohibits the fund from investing in certain companies which invest in real estate be eliminated. The relevant restriction states that the fund "will not invest in real estate investment trusts or limited partnerships whose purpose is to acquire real estate solely for investment purposes in accordance with principles of diversification." The fund originally adopted this restriction at the request of German regulatory authorities in connection with the fund's offering of its shares in Germany. The fund no longer offers its shares in Germany and Putnam Management has therefore recommended to the Trustees that the restriction be eliminated. If the restriction is removed, the fund will be able to freely invest in real estate investment trusts and limited partnerships, as long as such investments are otherwise consistent with the fund's investment policies. This policy is consistent with that of most other Putnam funds. Also in connection with this proposal, the Trustees are recommending that the fund's remaining fundamental restriction with respect to investments in real estate be amended. This fundamental restriction currently states that the fund may not "invest in real estate, but it may purchase securities of companies which invest in real estate." The amended fundamental restriction is set forth below. "The fund may not ... Purchase or sell real estate, although it may purchase securities of issuers which deal in real estate, securities which are secured by interests in real estate, and securities which represent interests in real estate, and it may acquire and dispose of real estate or interests in real estate acquired through the exercise of its rights as a holder of debt obligations secured by real estate or interests therein." The proposed amendment expands the range of real estate related investments available to the fund. The fund would continue to be permitted to invest in companies which invest in real estate, but would also be permitted to invest in securities which represent interests in real estate and securities secured by real estate. In addition, the fund would be able to own real estate directly as a result of a default on debt obligations it owns. To the extent the fund invests in real estate related securities, it will be subject to the risks associated with the real estate market. These risks may include declines in the value of real estate, changes in general or local economic conditions, overbuilding, difficulty in completing construction, increased competition, changes in zoning laws, increases in property taxes and operating expenses, and variations in rental income. Generally, increases in interest rates will increase the costs of obtaining financing, which may result in a decrease in the value of such investments. REQUIRED VOTE.Required Vote. Approval of the this proposal requires the affirmative vote of the lesser of (1) more than 50% of the outstanding shares of the Fund,affected fund, or (2) 67% or more of the shares of the affected fund present at athe meeting if more than 50% of the outstanding shares of thesuch fund are present at the meeting byin person or by proxy. 3.G.2.D. AMENDING THE DECLARATION OF TRUSTFUNDAMENTAL INVESTMENT RESTRICTIONS WITH RESPECT TO MARGIN TRANSACTIONS.THE ISSUANCE OF SENIOR SECURITIES. Affected funds: Putnam Capital Opportunities Fund Putnam Classic Equity Fund Putnam Global Natural Resources Fund The Putnam Fund for Growth and Income Putnam International Capital Opportunities Fund Putnam International New Opportunities Fund Putnam New Value Fund Putnam Research Fund Putnam Small Cap Growth Fund Putnam Small Cap Value Fund Putnam Tax Smart Equity Fund The Trustees are recommendingrecommend that each of the Declaration of Trust be amended to eliminate theaffected funds' fundamental investment restriction with respect to margin transactions. The currentthe issuance of senior securities be revised to reflect the standard restriction statesexpected to be used by the other Putnam funds and to make it clear that a fund is not restricted from borrowing money consistent with its investment policies. Generally, a "senior security" is a security which has priority over any other security as follows: "nor shall the Trustees engage in any operations for the accountto distribution of assets or dividends and technically includes all indebtedness over 5% of the Trust generally or technically known as ... marginal transactions ... provided further,fund's assets. Each affected fund currently has one of the following investment restrictions which states that the Trustsuch fund may make margin payments in connection with transactions in financial futures contracts or related options." Putnam Management recommendednot: "Issue any class of securities which is senior to the Trustees that this fundamental investment restriction be eliminated because it is unnecessary in lightfund's shares of current regulatory requirements; neither the 1940 Act nor any statebeneficial interest." (All affected funds except Putnam Global Natural Resources Fund.) OR "Issue senior securities law requires(except insofar as the fund may be deemed to have such a restriction. Margin transactions involve the purchasebe doing so by virtue of securities with money borrowed from a broker by placing cash or eligible securities, called "margin", with a broker as collateral against the loan. The[the fund's potential use of margin transactions beyond transactions in financial futures and related options, including the use of margin in ordinary securities transactions, is effectively limited by the current position taken by the Staff of the SEC that margin transactionsother investment restrictions with respect to securities are prohibited under Section 18 of the 1940 Act because they create senior securities. The fund's ability to engageinvestments in margin transactions is also limited to the extent such transactions are considered borrowing, since the fund's policies currently prohibit the fund from borrowing money except for emergency purposes. REQUIRED VOTE. Approval of the proposal requires the affirmative vote of the majority of the outstanding shares of the fund. 3.H. ELIMINATING THE FUND'S FUNDAMENTAL INVESTMENT RESTRICTIONS WITH RESPECT TO SHORT SALES. The Trustees are recommending that the Declaration of Trust be amended to eliminate the fundamental investment restriction with respect to short sales. The current restriction is required under certain state securities laws but is not required to be a Fundamental policy. The current restriction states as follows: "nor shall the Trustees engage in any operations for the account of the Trust generally or technically known as short sales ..., provided that such limitation shall not prevent any sale of securities by the Trust where the Trust owns at the time of such sale securities equivalent in kind and amount to those sold or where the Trust owns at the time of such sale securities convertible into securities equivalent in kind and amount to those sold" The fund's Statement of Additional Information also contains a fundamental investment restriction governing the fund's use of short sales, which states that the fund may not "[e]ngage in margin transactions or short sales (but it may make margin payments in connection with financial futures contracts and options)." If this proposal is approved, the Trustees intend to replace these fundamental restrictions with the following non-fundamental restriction: "The fund may not ... Make short sales of securities or maintain a short position for the account of the fund unless at all times when a short position is open it owns an equal amount of such securities or owns securities which, without payment of any further consideration, are convertible into or exchangeable for securities of the same issue as, and in equal amount to, the securities sold short." Under the proposed new non-fundamental restriction, the fund only could enter into short sales in cases where the fund owns or has the right to acquire securities equal in value to those securities sold short (an investment technique known as a short sale "against the box.") The fund might use this technique when it believes the price of a security may decline, causing a decline in the value of a security owned by the fund. The fund would not be permitted to engage in short sales other than short sales against the box. Putnam Management recommended to the Trustees making this policy non-fundamental to provide the fund with maximum flexibility to modify or eliminate the policy if no longer required under state law. If the restriction were no longer required, the Trustees could change or remove the restriction to increase the fund's investment flexibility without the need for further shareholder approval. Such a modification or removal might result in the fund engaging in short sales, consistent with applicable regulations and its investment policies, at some future date. In a typical short sale, the fund borrows securities from a broker that it anticipates will decline in value in order to sell to a third party. Following this short sale, the fund becomes obligated to return securities of the same issue and quantity to the broker to settle the loan at some future date. If the securities sold short decline in value, the fund makes a profit equal to the decline minus any associated costs, such as commissions, by buying equivalent securities at such lower value and delivering them to the broker. If the securities sold short increase in value, the fund realizes a loss equal to the value of the increase plus any associated costs. The fund collateralizes its short position by delivering to the broker an amount equal to the proceeds of the short sale and an additional margin amount as required by law. In addition, current SEC rules require the fund to maintain in a segregated account cash or U.S. government securities equal to the current market value of the securities sold short minus the margin amount delivered to the broker. The value of the segregated account is marked to market daily to reflect any changes in value of the fund's short position. REQUIRED VOTE. Approval of the proposal requires the affirmative vote of the majority of the outstanding shares of the fund. 3.I. AMENDING THE FUND'S FUNDAMENTAL INVESTMENT RESTRICTION WITH RESPECT TO MAKING LOANS BY PURCHASING SECURITIES. The Trustees are recommending that the fund's fundamental investment restriction relating toand making loans be revised to permit the fund to purchase debt obligations as long as such investment is consistent with the fund's investment policies.loans])." (Putnam Global Natural Resources Fund only.) The proposed amendment would replace the current exception contained in the restriction which permits the fund to make loans through "the purchase of securities of corporations or associations and certain government securities ..." The amended fundamental investment restriction is set forth below. The section of the restriction in brackets is proposed to be amended by proposal 3(J) below.below: "The fund may not ... Make loans, except by purchasenot... [i]ssue any class of debt obligations insecurities which the fund may invest consistent with its investment policies[, by entry into repurchase agreements with respect to not more than 25% of its total assets, or through the lending of its portfolio securities with respect to not more than 25% of its total assets.]" Putnam Management recommended the amendmentis senior to the Trustees because it believes that the increased investment flexibility will aid the fund in achieving its investment objective. Putnam Management believes that the current policy is overly broad and restrictive and could, for example, be read to prevent the fund from purchasing certain government securities. Following the amendment, the fund could invest in any type of debt obligation issued by any type of issuer, including those issued by corporations, partnerships, and government issuers, as long as such investment was consistent with the fund's investment policies. REQUIRED VOTE. Approval of the proposal requires the affirmative vote of the majority of the outstanding shares of the fund. 3.J. AMENDING THE FUND'S DECLARATION OF TRUST WITH RESPECT TO MAKING LOANS THROUGH REPURCHASE AGREEMENTS AND SECURITIES LOANS.beneficial interest, except for permitted borrowings." The Trustees are recommending that the fund's current fundamental investment restrictions be revised to remove the asset1940 Act imposes limitations on the fund'san investment company's ability to enter into repurchase agreements and securities loans. These restrictions currently state that: "[t]he Trustees shall have full power and authority to buy and invest the funds in their hands in ... repurchase agreements with respect to not more than 25% of the Trust's total assets ... and to make loans of its portfolio securities with respect to not more than 25% of the Trust's total assets." The amended fundamentalissue senior securities. This revised investment restriction is set forth below. The sectionintended to simplify and standardize the language of the restriction in brackets is proposedfunds' policies concerning senior securities, and to be amended by proposal 3(I) above. "Thepermit each fund may not ... Make loans, [except by purchaseto take full advantage of debt obligations in which the fund may invest consistent with its investment policies,] entering into repurchase agreements, or through the lending of its portfolio securities." Following the amendment, the fund may, consistent with its investment objective and policies, enter into such transactions without limit. Putnam Management recommended this amendment to the Trustees because it believes that the increasedall investment flexibility will aid the fund in achieving its investment objective. Putnam Management believes that repurchase agreements and securities loans often offer opportunities for increased investment return. When the fund enters into a REPURCHASE AGREEMENT, it purchases a debt instrument for a relatively short period (usually not more than one week), which the seller agrees to repurchase at a fixed time and price, representing the fund's cost plus interest. When the fund enters into a SECURITIES LOAN, it lends certainpermitted under applicable law. Required vote. Approval of its portfolio securities to broker-dealers or other parties. These transactions must be fully collateralized at all times, and involve some risk to the fund if the other party should default on its obligation and the fund is delayed or prevented from recovering the collateral or completing the transaction. In the case of a repurchase agreement, if the other party should become involved in bankruptcy or insolvency proceedings, it is possible that the fund may be treated as an unsecured creditor and be required to return the underlying collateral to the other party's estate. In connection with these proposed changes, the Trustees are also recommending that the Declaration of Trust be amended to remove these restrictions. Currently, the affirmative vote of a majority of the fund's outstanding shares is required to amend the Declaration of Trust and change these restrictions. Once these restrictions are removed from the Declaration of Trust, they may be modified or eliminated by the fund withthis proposal requires the affirmative vote of the lesser of (1) more than 50% of the outstanding shares of thesuch fund, or (2) 67% or more of the shares of thesuch fund present at athe meeting if more than 50% of the outstanding shares of thesuch fund are present at the meeting byin person or by proxy. REQUIRED VOTE. Approval2.E AMENDING FUND'S INVESTMENT OBJECTIVE Affected fund: Putnam Equity Income Fund The Trustees recommend that the fund's shareholders approve an amendment to the fund's investment objective, which, as disclosed in the fund's prospectus, states: The fund seeks current income. Capital growth is a secondary objective when consistent with seeking current income. The proposed new investment objective of the proposalfund is the following: The fund seeks capital growth and current income. Putnam Management believes that the fund's current investment objective, which gives priority to amendcurrent income, has become more constraining for the fundamentalfund's management team. Putnam Management believes that by restating the fund's investment restrictions and remove them fromobjective to give greater emphasis to capital growth, the Agreement and Declarationfund's management team will be able to take advantage of Trust requiresmore opportunities in the affirmative votemarket for growth stocks as well as income-generating stocks, thereby better serving the long-term interests of the majority offund's shareholders. If approved, the outstanding sharesproposed investment objective would not materially alter the investment strategy of the fund. 3.K. ELIMINATING THE FUND'S FUNDAMENTAL INVESTMENT RESTRICTION PROHIBITING THE FUND FROM INVESTING IN INVESTMENT COMPANIES IF PROHIBITED BY GERMAN LAW. The fund's fundamental investment restrictions currently prohibitUnder normal circumstances, the fund from investing in the securities of investment companies if prohibited by German law. The fund originally adopted this restrictioninvests at the request of German regulatory authorities in connection with the fund's offeringleast 80% of its sharesnet assets in Germany. The relevant restriction statescommon stocks and other equity investments that offer the fund "will not invest in the securities of other investment companies, including unit investment trusts, in contravention of the German Foreign Investment Law (AuslandInvestmentGesetz)." The fund no longer offers its shares in Germany and Putnam Management has therefore recommended to the Trustees that the restriction be eliminated. The fund'spotential for current income. This non-fundamental investment restriction that also limits its investments in investment companies will notpolicy cannot be affected by this proposal. Under that restriction, the fund may not "[i]nvest in the securities of any other registered open-end investment companies, except as they may be acquired as part of a merger or consolidation or acquisition of assets or by purchases in the open market involving only customary broker's commissions." The 1940 Act also contains limitations on the fund's ability to invest in other investment companies. REQUIRED VOTE.changed without providing shareholders with at least 60 days' advance notice. Required Vote. Approval of the this proposal requires the affirmative vote of the lesser of (1) more than 50% of the outstanding shares of the fund, or (2) 67% or more of the shares of the fund present at athe meeting if more than 50% of the outstanding shares of the fund are present at the meeting byin person or by proxy. 4. APPROVAL OF A NEW MANAGEMENT CONTRACT3. Adoption of Amendment to Declarations of Trust. Affected funds: All funds, except Putnam Tax Smart Equity Fund The Trustees of youreach of the trusts of which a fund is a series (the "Trusts") and of each fund that is not a series of a Trust (each a "Fund") have approved and recommend shareholder approval of a proposal to amend each Trust's and each Fund's Agreement and Declaration of Trust ("Declaration of Trust") to expressly provide that shareholders approve a new management contract with Putnam Management, which provides for an increase in the management fees payableTrust or Fund may pay redemption proceeds in-kind (i.e., by distributing securities rather than cash). Exhibit D lists the Article and Section of each Declaration of Trust that would be revised by the fundproposed amendment to Putnam Management.each Declaration of Trust. The proposed contract, which is attachedamendments to each Declaration of Trust are set forth below: Article VI Distributions, Redemptions and Repurchases * * * Redemption and Repurchases Section 2. The Trust shall purchase such Shares as Exhibit A, is identical in all substantive respectsare offered by any Shareholder for redemption, upon the presentation of any certificate for the Shares to be purchased, a proper instrument of transfer and a request directed to the existing contract, exceptTrust or a person designated by the Trust that the Trust purchase such Shares, or in accordance with such other procedures for redemption as noted below. Further information about both the currentTrustees may from time to time authorize; and proposed management contract, the termination and renewal procedures,Trust will pay therefor the services provided by Putnam Management and its affiliates, and information concerning brokerage and related matters can be found under "Additional information relating to Management Contract approval" on page . WHAT DO MANAGEMENT FEES PAY FOR? Management fees pay Putnam Management for the services it provides in conducting the day-to-day operations of the fund. These include providing the personnel, equipment, and office facilities necessary for the management of the fund's investment portfolio, determining the fund's daily net asset value maintainingthereof, as next determined in accordance with the accounts and recordsBylaws, less any redemption charge fixed by the Trustees. Payment for said Shares shall be made by the Trust to the Shareholder within seven days after the date on which the request is made. The obligation set forth in this Section 2 is subject to the provision that in the event that any time the New York Stock Exchange is closed for other than customary weekends or holidays, or, if permitted by the rules of the fund, preparationSecurities and Exchange Commission, during periods when trading on the Exchange is restricted or during any emergency which makes it impractical for the Trust to dispose of reportsits investments or to shareholders, compliance with regulatory requirements, and general administrationdetermine fairly the value of its net assets, or during any other period permitted by order of the fund's affairs. WHY DID PUTNAM MANAGEMENT RECOMMEND A NEW MANAGEMENT FEE SCHEDULE TO THE TRUSTEES? In recent years, Putnam Management has noted a general increase inSecurities and Exchange Commission for the complexityprotection of the investment process and in the competition for talented investment personnel. Putnam Management recommended the new management fee schedule to help ensure that Putnam Management receives fees for its services that are competitive with fees paid to high-quality investment managers by other mutual funds. Putnam Management believes that maintaining competitive management fees will, over the longer term, enable it to continue to provide high- quality management services to your fund and to the other funds in the Putnam group. Putnam Management also notes that your fund's current management fee schedule has not been increased since 1988 and is lower than the fees paid to managers of competitive funds. HOW DID YOUR FUND'S TRUSTEES ARRIVE AT THE PROPOSED MANAGEMENT FEE? Several years ago, the Trustees undertook a comprehensive review of the management fees paidinvestors, such obligation may be suspended or postponed by the Putnam funds. This review was conducted largely throughTrustees. The Trust may also purchase or repurchase Shares at a price not exceeding the Contract Committeenet asset value of such Shares in effect when the Trustees, which consists solelypurchase or repurchase or any contract to purchase or repurchase is made. Payment for any redemption of independent Trustees whoShares pursuant may be made in cash or in other property, or in any combination thereof. The composition of any such payment shall be determined by the Trust in its sole discretion, and the Trust shall have no financial interestobligation to effect a pro rata division of cash or other property in making any such payment. In no event shall the Trust be liable for any delay of any other person in transferring securities or other property selected for delivery as all or part of any payment. (All affected funds except The Putnam Management. As a result of this review, the TrusteesFund for Growth and Putnam Management reached agreement on a system of model fee schedules for the various types of funds in the Putnam group. These model fee schedules have now been implemented for most of the Putnam funds. The proposed new fee schedule for the fund is identical to that which has been implemented for many other Putnam funds. The TrusteesIncome and Putnam Management also reached a general understanding that these model fee schedules should be implemented for a particular fund only following consideration of the fund's comparative investment performance and expense levels. After reviewing comparative data on competitive funds and noting, among other things, the fund's strong relative performance, the Trustees concluded that it would be appropriate to implement a model fee schedule for The George Putnam Fund of Boston atBoston.) OR Article IV Rights and Privileges of Beneficiaries * * * Right to Sell Shares to Trust Section 4. The Trust shall purchase such shares as are offered by any beneficiary for redemption, upon the presentation of any certificate for the shares to be purchased, a proper instrument of transfer and a request directed to the Trust or a person designated by the Trust that the Trust purchase such Shares, or in accordance with such other procedures for redemption as the Trustees may from time to time authorize; and the Trust will pay therefor the net asset value thereof, as next determined in accordance with the Bylaws, less any redemption charge fixed by the Trustees. Payment for said Shares shall be made by the Trust to the beneficiary within seven days after the date on which the request is made. The obligation set forth in this time. The Trustees have indicatedSection 4 is subject to the provision that they will continue to look closely atin the fund's comparative performance and expense levels in their future annual reviewsevent that any time the New York Stock Exchange is closed for other than customary weekends or holidays, or, if permitted by the rules of the fund's management contract. WHAT FACTORS DID THE TRUSTEES CONSIDER? The Trustees placed primary emphasis uponSecurities and Exchange Commission, during periods when trading on the nature and qualityExchange is restricted or during any emergency which makes it impractical for the Trust to dispose of its investments or to determine fairly the value of its net assets, or during any other period permitted by order of the services being provided by Putnam Management, including, in particular,Securities and Exchange Commission for the strong relative investment performanceprotection of the fund in recent years. In this regard, the Trustees also considered the relative complexity of managing the fund, and a comparison of recent management fees, and other expenses paidinvestors, such obligation may be suspended or postponed by the fund with thoseTrustees. The Trust may also purchase or repurchase shares at a price not exceeding the net asset value of similar funds managed bysuch shares in effect when the purchase or repurchase or any contract to purchase or repurchase is made. Payment for any redemption of shares pursuant may be made in cash or in other investment advisers.property, or in any combination thereof. The Trustees also considered, among other things, information provided by Putnam Management regarding the profitabilitycomposition of its current and proposed management fee arrangements with the fund (without regard to costs incurred by Putnam Management and its affiliates in connection with the marketing of shares), the benefits to Putnam Management and its affiliates resulting from the fact that affiliates of Putnam Management currently serve as shareholder servicing agent, distributor, and custodian for each of the Putnam funds pursuant to separate contractual arrangements, and Putnam Management's placing of portfolio transactions to recognize research and brokerage services. Information about certain of the factors consideredany such payment shall be determined by the Trustees is set forth below andTrust in the section "Additional Information Relating to Management Contract Approval" on page . Following consideration of theseits sole discretion, and the Trust shall have no obligation to effect a pro rata division of cash or other factors described above,property in making any such payment. In no event shall the TrusteesTrust be liable for any delay of your fund, includingany other person in transferring securities or other property selected for delivery as all of the independent Trustees, unanimously approved the proposed new contract. HOW HAS THE GEORGE PUTNAM FUND OF BOSTON PERFORMED? Asor part of any decision regarding management fees, shareholderspayment. (The Putnam Fund for Growth and Income.) OR Article IV Rights and Privileges of Beneficiaries * * * Right to Sell Shares to Trust Section 4. The Trust shall purchase such shares as are offered by any beneficiary for redemption, upon the presentation of any certificate for the shares to be purchased, a proper instrument of transfer and a request directed to the Trust or a person designated by the Trust that the Trust purchase such Shares, or in accordance with such other procedures for redemption as the Trustees may wishfrom time to consider howtime authorize; and the fund has performed.Trust will pay therefor the liquidating value thereof, as next determined in accordance with the Bylaws, less any redemption charge fixed by the Trustees. Payment for said Shares shall be made by the Trust to the beneficiary within seven days after the date on which the request is made. The chartobligation set forth in this Section 4 is subject to the provision that follows shows how $10,000 invested in the event that any time the New York Stock Exchange is closed for other than customary weekends or holidays, or, if permitted by the rules of the Securities and Exchange Commission, during periods when trading on the Exchange is restricted or during any emergency which makes it impractical for the Trust to dispose of its investments or to determine fairly the value of its net assets, or during any other period permitted by order of the Securities and Exchange Commission for the protection of investors, such obligation may be suspended or postponed by the Trustees. The Trust may also purchase or repurchase shares at a price not exceeding the liquidating value of such shares in effect when the purchase or repurchase or any contract to purchase or repurchase is made. Payment for any redemption of shares pursuant may be made in cash or in other property, or in any combination thereof. The composition of any such payment shall be determined by the Trust in its sole discretion, and the Trust shall have no obligation to effect a pro rata division of cash or other property in making any such payment. In no event shall the Trust be liable for any delay of any other person in transferring securities or other property selected for delivery as all or part of any payment. (The George Putnam Fund of Boston class A shares (with dividends reinvested) would have grownBoston.) Putnam Management recommended the proposed change to $33,035 over a ten-year period. GROWTH OF A $10,000 INVESTMENT (INSERT MOUNTAIN GRAPH HERE) PLOT POINTS: 7/31/85 10,000 7/31/86 12,919 7/31/87 16,101 7/31/88 15,237 7/31/89 18,642 7/31/90 19,735 7/31/91 21,961 7/31/92 24,965 7/31/93 27,122 7/31/94 28,060 7/31/95 33,035 Annualized total return asmodernize and standardize this provision of 7/31/95 Class A shares 10 years 12.69% 5 years 10.85% 3 years 9.79% 1 year 17.73% CLASS M SHARES Life (since 12/1/94) 28.86% CLASS B SHARES ANNUALIZED RETURN IF ANNUALIZED RETURN YOU DID NOT REDEEM IF YOU DID REDEEM Life (since 4/27/92) 9.82% 9.08% 1 year 16.87% 11.87% Performance assumes reinvestmenteach Trust's or Fund's Declaration of distributions at net asset value, represents past results, and does not account for taxes or for payments underTrust. The Declarations of Trust are currently silent on the fund's class A distribution plan before its inception in 1990. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. The average total annual return for class A shares for the one-, three-, five- and ten-year periods ended July 31, 1995 was 11.00%, 7.64%, 9.54% and 12.02%, respectively, adjusted to reflect the deductionmatter of the maximum sales chargepermitted form of 5.75%. Class B share performance shown above reflectsredemption payments or permit only a cash payment. Although the maximum contingent deferred sales charge of 5%Trusts and Funds have no current intention to redeem their shares other than for 1 year and 3% for life of class if shares were redeemed on July 31, 1995. The average total annual return for class M shares through July 31, 1995 since inception of the class on December 1, 1994 was 22.23%, adjusted to reflect the deduction of the maximum sales charge of 3.50%. The average total annual return for Class Y shares through July 31, 1995 for the one-year period and since inception of the class on April 4, 1994 was 18.00% and 16.35, respectively. HOW HAS THE GEORGE PUTNAM FUND OF BOSTON PERFORMED IN COMPARISON TO SIMILAR FUNDS? Another way of evaluating the performance of your fund is to compare it to other growth and income funds. In reviewing the fund's relative performance, your Trustees andcash, Putnam Management compare itbelieves that the explicit authority to other funds with similar investment objectivespay a redemption wholly or partially in kind may benefit a fund's or Trust's remaining shareholders. If shares are redeemed in-kind, the redeeming shareholder would incur brokerage costs in converting the portfolio securities into cash. Required Vote. For each Trust, all shares will vote together as a single class, and strategies. When evaluated in that group,approval of this proposal requires the total returnaffirmative vote of shareholders holding a majority of the class A shares of the fund ranked inTrust entitled to vote. For each Fund that operates as the top 7%sole series of 220 such funds for the twelve months ended December 31, 1995, in the top 14% of 99 such funds for the three years ended December 31, 1995 and in the top 36% of 61 such funds for the five years ended December 31, 1995. This means that for all three periods the fund's class A total return was at least in the top 36%Trust, approval of this group. WHAT IS THE EFFECT OF THE NEW MANAGEMENT FEE SCHEDULE? Under the new management contract, the annual management fee paid by your fund to Putnam Management would be increased as follows: Existing Fee Proposed Fee FIRST $100 MILLION 0.60% FIRST $500 MILLION 0.65% NEXT $100 MILLION 0.50% NEXT $500 MILLION 0.55% NEXT $300 MILLION 0.40% NEXT $500 MILLION 0.50% NEXT $500 MILLION 0.325% NEXT $5 BILLION 0.45% OVER $1.0 BILLION 0.30% NEXT $5 BILLION 0.425% NEXT $5 BILLION 0.405% NEXT $5 BILLION 0.39% THEREAFTER 0.38% Based on net assets of the fund at January 31, 1996 of $1,841,786,936, the effective annual management fee rate under the proposed fee schedule would be 0.55% as compared to 0.35% under the existing schedule. This represents an increase of $0.20 in annual expenses for each $100 invested in the fund. The new management fee schedule, like the old, provides for lower management fee rates as the fund's assets increase. For its fiscal year ended July 31, 1995, the fund paid management fees to Putnam Management of $4,618,445. If the proposed new management contract had been in effect for the year, the fund would have paid fees of $7,155,742, which is an increase of 55%. The following tables summarize the expenses incurred by the fund in the most recent fiscal year and restates these expenses on a pro forma basis, reflecting the implementation of the proposed fee schedule. ANNUAL FUND OPERATING EXPENSES (as a percentage of average net assets) (ACTUAL) TOTAL FUND MANAGEMENT 12B-1 OTHER OPERATING FEES FEES EXPENSES EXPENSES - ---------- ----- ------------------- Class A 0.38% 0.25% 0.28% 0.91% Class B 0.38% 1.00% 0.28% 1.66% Class M 0.38% 0.75% 0.28% 1.44% (PRO FORMA) TOTAL FUND MANAGEMENT 12B-1 OTHER OPERATING FEES FEES EXPENSES EXPENSES - ---------- ----- ------------------- Class A 0.58% 0.25% 0.28% 1.11% Class B 0.58% 1.00% 0.28% 1.86% Class M 0.58% 0.75% 0.28% 1.61% The table is provided to help you understand the expenses of investing in the fund and your share of the operating expenses that the fund incurs. The 12b-1 fees for class M shares reflect the amount currently payable under the class M distribution plan. For class M shares, management fees and "Other expenses" are based on the corresponding expenses for class A shares. EXAMPLES Your investment of $1,000 would incur the following expenses, assuming 5% annual return and, except as indicated, redemption at the end of each period: (ACTUAL) 1 3 5 10 year years years years CLASS A $66 $85 $105 $163 CLASS B $67 $82 $110 $177*** CLASS B (NO REDEMPTION) $17 $52 $90 $177*** CLASS M $49 $78 $109 $198 (PRO FORMA) 1 3 5 10 year years years years CLASS A $68 $91 $115 $185 CLASS B $69 $88 $121 $198*** CLASS B (NO REDEMPTION) $19 $58 $101 $198*** CLASS M $51 $84 $120 $220 The examples do not represent past or future expense levels. Actual expenses may be greater or less than those shown. Federal regulations require the examples to assume a 5% annual return, but actual annual return varies. * The higher 12b-1 fees borne by class B and class M shares may cause long-term shareholders to pay more than the economic equivalent of the maximum permitted front-end sales charge on class A shares. ** A deferred sales charge of up to 1.00% is assessed on certain redemptions of class A shares that were purchased without an initial sales charge. *** Reflects conversion of class B shares to class A shares (which pay lower ongoing expenses) approximately eight years after purchase. ARE THERE ANY OTHER PROPOSED CHANGES? The only other substantive changes in the new management contract relate to the payment by the fund of the compensation and related expenses of certain officers of the fund. The existing contractproposal requires the fund to reimburse Putnam Management for the compensation and related expenses of the fund's Vice Chairman and such other officers of the fund and their assistants as the Trustees of the fund may determine. Since January 1, 1992, the administrative duties previously performed by the office of Vice Chairman have been divided among various other officers of the fund. As a result, the new contract provides for the payment by the fund of the compensation and related expenses of such officers of the fund and their assistants as the Trustees may determine. WHAT PERCENTAGE OF SHAREHOLDERS' VOTES ARE REQUIRED TO PASS THE PROPOSAL? Approval of the new management contract will require the "yes"affirmative vote of shareholders holding a "majority of the outstanding voting securities" of the fund, as provided in the Investment Company Act of 1940. For this purpose, this means the "yes" vote of the lesser of (1) more than 50% of the outstanding shares of the fund or (2) 67% or moremajority of the shares present atof such Fund outstanding. Further information about voting and the meeting if moreQuorum and Methods of Tabulation. The shareholders of each fund vote separately with respect to each proposal other than 50%the election of Trustees (Proposal 1) and approving the outstanding shares are present atamendment to a Trust's Declaration of Trust (Proposal 3), in which case shareholders of each series of a trust vote together as a single class. In the meeting in person or by proxy. If the shareholders do not approve the new contract, the existing management contract will continue in effect. THE TRUSTEES BELIEVE THAT THE PROPOSED NEW MANAGEMENT FEE IS FAIR AND REASONABLE AND IN THE BEST INTERESTS OF THE SHAREHOLDERS OF THE FUND. ACCORDINGLY, THE TRUSTEES RECOMMEND THAT SHAREHOLDERS VOTE FOR APPROVAL OF THE PROPOSED NEW CONTRACT. FURTHER INFORMATION ABOUT VOTING AND THE SHAREHOLDER MEETING QUORUM AND METHODS OF TABULATION. Thirty percentcase of each fund, 30% of the shares entitled to vote -- present in person or represented by proxy -- constitutes a quorum for the transaction of business with respect to any proposal at the meeting (unless otherwise noted in the proxy statement). Votes cast by proxy or in person at the meeting will be counted by persons appointed by your fund as tellers for the meeting. The tellers will count the total number of votes cast "for" approval of a proposal for purposes of determining whether sufficient affirmative votes have been cast. Shares represented by proxies that reflect abstentions and "broker non-votes" (i.e., shares held by brokers or nominees as to which (i) instructions have not been received from the beneficial owners or the persons entitled to vote and (ii) the broker or nominee does not have the discretionary voting power on a particular matter) will be counted as shares that are present and entitled to vote on the matter for purposes of determining the presence of a quorum. Votes cast by proxy or in person at the meeting will be counted by persons appointed by your fund as tellers for the meeting. The tellers will count the total number of votes cast "for" approval of the proposals for purposes of determining whether sufficient affirmative votes have been cast. With respect to the election of Trustees, and selection of auditors, neither abstentions nor broker non-votes have anyan effect on the outcome of the proposal. With respect to any other proposals, abstentions and broker non-votes have the effect of a negative vote on"against" the proposal. OTHER BUSINESS.Other business. The Trustees know of no matters other businessthan those set forth herein to be brought before the meeting. However, ifIf, however, any other matters properly come before the meeting,Meeting, it is theirthe Trustees' intention that proxies that do not contain specific restrictions to the contrary will be voted on such matters in accordance with the judgment of the persons named as proxies in the enclosed form of proxy. SIMULTANEOUS MEETINGS.Simultaneous meetings. The meeting of shareholders of your fund is called to be held at the same time as the meetings of shareholders of certain of the other Putnam funds. It is anticipated that all meetings will be held simultaneously. If any shareholder at the meeting objects to the holding of a simultaneous meeting and moves for an adjournment of the meeting to a time promptly after the simultaneous meetings, the persons named as proxies will vote in favor of such adjournment. SOLICITATION OF PROXIES.Solicitation of proxies. In addition to soliciting proxies by mail, Trustees of your fund and employees of Putnam Management, Putnam Fiduciary Trust Company, and Putnam Mutual FundsRetail Management may solicit proxies in person or by telephone. Your fund may also arrange to have votes recordeda proxy solicitation firm call you to record your voting instructions by telephone. The procedures for voting proxies by telephone voting procedure isare designed to authenticate shareholders' identities, to allow shareholdersthem to authorize the voting of their shares in accordance with their instructions and to confirm that their instructions have been properly recorded. Your fund has been advised by counsel that these procedures are consistent with the requirements of applicable law. If these procedures were subject to a successful legal challenge, such votes would not be counted at the meeting.Meeting. Your fund is unaware of any such challenge at this time. Shareholders would be called at the phone number Putnam InvestmentsManagement has in its records for their accounts, and would be asked for their Social Security number or other identifying information. The shareholders would then be given an opportunity to authorize the proxies to vote their shares at the meeting in accordance with their instructions. To ensure that the shareholders' instructions have been recorded correctly, they will also receive a confirmation of their instructions in the mail. A special toll-free number will be available in case the information contained in the confirmation is incorrect. Shareholders have the opportunity to submit their voting instructions via the Internet by utilizing a program provided by a third party vendor hired by Putnam Management or by automated telephone service. The giving of such a proxy will not affect your right to vote in person should you decide to attend the Meeting. To use the Internet, please access the Internet address listed on your proxy card, and follow the instructions on the internet site. To record your voting instructions via automated telephone service, call the toll-free number listed on your proxy card. The Internet and telephone voting procedures are designed to authenticate shareholder identities, to allow shareholders to give their voting instructions, and to confirm that shareholders' instructions have been recorded properly. Shareholders voting via the Internet should understand that there may be costs associated with electronic access, such as usage charges from Internet access providers and telephone companies, that must be borne by the shareholders. Your fund's Trustees have adopted a general policy of maintaining confidentiality in the voting of proxies. Consistent with this policy, your fund may solicit proxies from shareholders who have not voted their shares or who have abstained from voting. Persons holding shares as nominees will, upon request, be reimbursed for their reasonable expenses in soliciting instructions from their principals. Your fund hasThe funds have retained at its own expense Tritech Services, Four Corporate Place, Corporate Park 287, Piscataway, New Jersey 08854,PFPC Inc., 4400 Computer Drive, Westborough, Massachusetts 01581, to aid in the solicitation of instructions for registered and nominee accounts, for a fee expected not to exceed $$1.3 million plus reasonable out-of-pocket expenses for mailingmailing. The expenses of the preparation of proxy statements and phone costs. Your fund has also retained D. F. King & Co., Inc., 77 Water Street, New York, New York 10005, to aid in the solicitation instructions for registered accounts for a fee not to exceed $ plus reasonable out-of-pocket expenses. REVOCATION OF PROXIES.related materials, including printing and delivery costs, are borne by each fund. Revocation of proxies. Proxies, including proxies given by telephone or over the Internet, may be revoked at any time before they are voted either (i) by a written revocation received by the Clerk of your fund, (ii) by properly executing a later-dated proxy, (iii) by recording later-dated voting instructions via the Internet or (iv) by attending the meetingMeeting and voting in person. DATE FOR RECEIPT OF SHAREHOLDERS' PROPOSALS FOR SUBSEQUENT MEETINGS OF SHAREHOLDERS. Your fund's Agreement and DeclarationDate for receipt of Trust does not provideshareholders' proposals for annualsubsequent meetings of shareholders, and yourshareholders. Your fund does not currently intendhold regular shareholder meetings, but may from time to hold such a meetingtime schedule special meetings. In accordance with the regulations of the SEC, in 1997. Shareholder proposalsorder to be eligible for inclusion in the fund's proxy statement for such a meeting, a shareholder proposal must be received a reasonable time before the fund prints and mails its proxy statement. [The Board Policy and Nominating Committee will also consider nominees recommended by shareholders of the fund to serve as Trustees. Shareholders who wish to propose, for consideration by the Board Policy and Nominating Committee, one or more nominees for election as Trustees must provide written notice to the fund (including all required information) so that such notice is received in good order within a reasonable time before your fund prints and mails its proxy statement for any subsequent meeting must be received by yourscheduled special meeting.] If a shareholder who wishes to present a proposal fails to notify the fund within a reasonable periodtime before the fund mails its proxy statement, the proxies solicited for the meeting will have discretionary authority to vote on the shareholder's proposal if it is properly brought before the meeting. If a shareholder makes a timely notification, the proxies may still exercise discretionary voting authority under circumstances consistent with the SEC's proxy rules. All shareholder proposals must also comply with other requirements of time prior to any such meeting. ADJOURNMENT.the SEC's rules and the fund's Declaration of Trust. Adjournment. If sufficient votes in favor of any of the proposals set forth in the Notice of the Meeting are not received by the time scheduled for the meeting,Meeting, the persons named as proxies may propose adjournments of the meetingMeeting for a period or periods of not more than 60 days in the aggregate to permit further solicitation of proxies with respect to any of such proposals. Anyproxies. [Any adjournment will require the affirmative vote of a majority of the votes cast on the question in person or by proxy at the session of the meetingMeeting to be adjourned.] The persons named as proxies will vote in favor of such adjournment those proxies whichthat they are entitled to vote in favor of suchthe proposals. They will vote against any such adjournment those proxies required to be voted against any of suchthe proposals. Your fund pays the costs of any additional solicitation and of any adjourned session. Any proposals for which sufficient favorable votes have been received by the time of the meeting may be acted upon and considered final regardless of whether the meeting is adjourned to permit additional solicitation with respect to any other proposal. FINANCIAL INFORMATION. YOUR FUND WILL FURNISH, WITHOUT CHARGE, TO YOU UPON REQUEST A COPY OF THE FUND'S ANNUAL REPORT FOR ITS MOST RECENT FISCAL YEAR, AND A COPY OF ITS SEMIANNUAL REPORT FOR ANY SUBSEQUENT SEMIANNUAL PERIOD. SUCH REQUESTS MAY BE DIRECTED TO PUTNAM INVESTOR SERVICES,Financial information. Your fund will furnish to you upon request and without charge, a copy of the fund's annual report for its most recent fiscal year, and a copy of its semiannual report for any subsequent semiannual period. Such requests may be directed to Putnam Investor Services, P.O. BOXBox 41203, PROVIDENCE,Providence, RI 02940-1203 ORor 1-800-225-1581. FURTHER INFORMATION ABOUT YOUR FUND LIMITATION OF TRUSTEE LIABILITY.Fund Information Putnam Investments. Putnam Investment Management, LLC, the fund's investment manager, is a subsidiary of Putnam Management Trust, which is in turn owned by Putnam Investments. Putnam Investments is a wholly-owned subsidiary of Putnam Investments Trust, a holding company that, except for a minority stake owned by employees, is in turn owned by Marsh & McLennan Companies, Inc., a leading professional services firm that includes risk and insurance services, investment management and consulting businesses. Putnam Investments Limited, Cassini House, 57-59 St. James's Street, London SW1A 1LD, United Kingdom, serves as investment sub-adviser to Putnam Europe Equity Fund and Putnam International Equity Fund. Putnam Investments Limited is also an indirect subsidiary of Putnam Investments Trust. Putnam Fiduciary Trust Company, the fund's investor servicing agent and custodian and Putnam Retail Management Limited Partnership, the fund's principal underwriter, are also subsidiaries of Putnam Investments. The address of Putnam Investments Trust, Putnam Investments, Putnam Investment Management, LLC, Putnam Retail Management Limited Partnership and Putnam Fiduciary Trust Company is One Post Office Square, Boston, Massachusetts 02109. The address of the executive offices of Marsh & McLennan Companies, Inc. is 1166 Avenue of the Americas, New York, New York 10036. Litigation. Exhibit E to this proxy statement describes the pending legal proceedings in which the Trustees have been named as parties adverse to your fund as of June 30, 2004. Limitation of Trustee liability. The Agreement and Declaration of Trust of youreach fund provides that the fund will indemnify its Trustees and officers against liabilities and expenses incurred in connection with litigation in which they may be involved because of their offices with the fund, except if it is determined in the manner specified in the Agreement and Declaration of Trust that they have not acted in good faith in the reasonable belief that their actions were in the best interests of the fund or that such indemnification would relieve any officer or Trustee of any liability to the fund or its shareholders arising by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of his or her duties. Your fund, at its expense, provides liability insurance for the benefit of its Trustees and officers. AUDIT AND NOMINATING COMMITTEES.Independent Auditors. As listed below, the Trustees have selected PricewaterhouseCoopers LLP, 125 High Street, Boston, Massachusetts 02110, or KPMG LLP, 99 high Street Boston, Massachusetts 02110 as the independent auditors for each fund's current fiscal year. Each of these firms is among the country's preeminent accounting firms. Each firm was selected primarily on the basis of its expertise as auditors of investment companies, the quality of its audit services and the competitiveness of its fees. Representatives of each PricewaterhouseCoopers LLP and KPMG LLP are expected to be present at the meeting to make statements and to respond to appropriate questions. The voting membersfollowing table presents fees billed in each of the last two fiscal years for services rendered to each fund by PricewaterhouseCoopers LLP or KPMG LLP: Table to come Audit Fees represents audit fees billed for a fund's last two fiscal years. Audit-Related Fees represents fees billed in a fund's last two fiscal years for services traditionally performed by the fund's auditor, including accounting consultation for proposed transactions or concerning financial accounting and reporting standards and other audit or attest services not required by statute or regulation. Tax Fees represents fees billed in a fund's last two fiscal years for tax compliance, tax planning and tax advice services. Tax planning and tax advice services include assistance with tax audits, employee benefit plans and requests for rulings or technical advice from taxing authorities. All Other Fees represents fees billed for services relating to calculation of a fund's investment performance. The following tables present the amounts the independent auditors for each fund billed for aggregate non-audit fees in each of the last two fiscal years to each fund, Putnam Management and any entity controlling, controlled by or under common control with Putnam Management that provides ongoing services to the fund: Pre-Approval Policies of the Audit and Pricing Committee. The Audit and Pricing Committee of your fund include only Trustees who arethe Putnam funds has determined that, as a matter of policy, all work performed for the funds by the funds' independent auditors will be pre-approved by the Committee and will generally not "interested persons"be subject to pre-approval procedures. Under certain circumstances, the Audit and Pricing Committee believes that it may be appropriate for Putnam Management and certain of its affiliates to engage the services of the fundfunds' independent auditors, but only after prior approval by the Committee. Such requests are required to be submitted in writing to the Committee and explain, among other things, the nature of the proposed engagement, the estimated fees, and why this work must be performed by that particular audit firm. The Committee will review the proposed engagement at its next meeting. Since May 6, 2003, all work performed by the independent auditors for the funds, Putnam Management and any entity controlling, controlled by or by reason of any affiliationunder common control with Putnam Investments and its affiliates. The AuditManagement that provides ongoing services to the funds was pre-approved by the Committee currently consists of Messrs. Estin (Chairman), Perkins (without vote), Putnam, III (without vote), Shapiro, Smith (without vote), and Ms. Kennan. The Nominating Committee consists only of Trustees who are not "interested persons" of your fund or Putnam Management. The Nominating Committee currently consists of Dr. Pounds and Ms. Kennan (Co-chairpersons), Ms. Baxter, and Messrs. Estin, Hill, Patterson, Shapiro, and Thorndike. OFFICERS AND OTHER INFORMATION. In addition to George Putnam and Lawrence J. Lasser, the officers of your fund are as follows: Year first elected to Name (age) Office office - ----------------------------------------------------------------- Charles E. Porter (57) Executive Vice President 1989 Patricia C. Flaherty (49) Senior Vice President 1993 John D. Hughes (61) Senior Vice President & Treasurer 1987 Gordon H. Silver (48) Vice President 1990 Peter Carman (54) Vice President 1994 Brett C. Browchuk (33) Vice President 1994 Thomas V. Reilly (49) Vice President 1984 Edward P. Bousa* (37) Vice President 1994 Rosemary H. Thomsen* (35) Vice President 1995 Kenneth J. Taubes* (36) Vice President 1994 William N. Shiebler** (54) Vice President 1991 John R. Verani (56) Vice President 1987 Paul M. O'Neil (42) Vice President 1992 Beverly Marcus (51) Clerk 1981 - ----------------------------------------------------------------- * Onea member of the Committee pursuant to the pre-approval policies discussed above. Prior to that date, the Committee had a general policy to pre-approve the independent auditors' engagements for non-audit services with the funds, Putnam Management and any entity controlling, controlled by or under common control with Putnam Management that provides ongoing services to the funds. For each fund's portfolio managers ** Presidentlast two fiscal years, such fund's principal auditor did not bill for services required to be approved pursuant to paragraph (c)(7)(ii) of Putnam Mutual FundsRule 2-01 of Regulation S-X. Officers and other information. All of the officers of your fund, with the exception of Mr. Putnam, III, are employees of Putnam Management or its affiliates. Because of their positions with Putnam Management, Putnam Retail Management or itstheir affiliates or their ownership of stock of Marsh & McLennan Companies, Inc., the parent corporation of Putnam ManagementInvestments Trust and indirectly of Putnam Mutual Funds,LLC, Messrs. Putnam, GeorgeHaldeman, Putnam, III Lasser and Smith (nominees for Trustees of your fund), as well as the officers of your fund, will benefit from the management fees, distribution fees, underwriting commissions, custodian fees, and investor servicing fees paid or allowed by the fund. ADDITIONAL INFORMATION RELATING TO MANAGEMENT CONTRACT APPROVAL FURTHER INFORMATION ABOUT PUTNAM INVESTMENT MANAGEMENT, INC. AND ITS PROPOSED MANAGEMENT CONTRACT. Putnam Management and its affiliates, Putnam Mutual Funds, the principal underwriter for shares of your fund, and Putnam Fiduciary Trust Company, your fund's investor servicing agent and custodian, are wholly owned by Putnam Investments, Inc., One Post Office Square, Boston, Massachusetts 02109, a holding company that is in turn wholly owned by Marsh & McLennan Companies, Inc., which has executive offices at 1166 Avenue of the Americas, New York, New York 10036. Marsh & McLennan Companies, Inc., and its operating subsidiaries are professional services firms with insurance and reinsurance brokering, consulting and investment management businesses. The directors of Putnam Management are George Putnam, Lawrence J. Lasser, and Gordon H. Silver. Mr. Lasser is the principal executive officer of Putnam Management. The principal occupations of Messrs. Putnam, Lasser, and Silver are as officers and directors of Putnam Management and certain of its corporate affiliates. The address of Putnam Management and the business address of the directors and officers of Putnam Management is One Post Office Square, Boston, Massachusetts 02109. In addition to Mr. Putnam, III, the services it provides to yourother officers of each fund Putnam Management actsare as investment adviser or subadviserfollows:
Year first Name (birthdate) elected Business experience Office with the fund to office during past five years - ------------------------------------------------------------------------------ Charles E. Porter (7/26/38) 1989 Managing Director, Executive Vice President, Putnam Investments Associate Treasurer and and Putnam Management Principal Executive Officer - ------------------------------------------------------------------------------ Patricia C. Flaherty (12/1/46) 1993 Senior Vice President, Senior Vice President Putnam Investments and Putnam Management - ------------------------------------------------------------------------------ Jonathan S. Horwitz (6/4/55) 2004 Managing Director, Senior Vice President and Treasurer Putnam Investments - ------------------------------------------------------------------------------ Steven D. Krichmar (6/27/58) 2002 Managing Director, Vice President and Principal Putnam Investments. Financial Officer Prior to July 2001, Partner, PricewaterhouseCoopers, LLP - ------------------------------------------------------------------------------ Michael T. Healy (1/24/58) 2000 Managing Director, Assistant Treasurer and Principal Putnam Investments Accounting Officer - ------------------------------------------------------------------------------ Beth S. Mazor (4/6/58) 2002 Senior Vice President, Vice President Putnam Investments - ------------------------------------------------------------------------------ Daniel T. Gallagher (2/27/62) 2004 Vice President, Putnam Vice President and Legal and Investments. Prior to Compliance Liaison Officer 2004, Mr. Gallagher was an Associate for Ropes & Gray LLP; Prior to 2000, he was a Law Clerk for the Massachusetts Supreme Judicial Court - ------------------------------------------------------------------------------ Mark C. Trenchard (6/5/62) 2002 Senior Vice President, Assistant Treasurer and Putnam Investments BSA Compliance Officer - ------------------------------------------------------------------------------ Francis J. McNamara (8/19/55) 2004 Senior Managing Director, Vice President and Chief Legal Officer Putnam Investments, Putnam Management and Putnam Retail Management. Prior to 2004, Mr. McNamara was General Counsel of State Street Research & Management - ------------------------------------------------------------------------------ James P. Pappas (2/24/53) 2004 Managing Director, Vice President Putnam Investments and Putnam Management. During 2002, Mr. Pappas was Chief Operating Officer of Atalanta/ Sosnoff Management Corporation; prior to 2001 he was President and Chief Executive Officer of UAM Investment Services, Inc. - ------------------------------------------------------------------------------ Richard S. Robie, III (3/30/60) 2004 Senior Managing Director, Vice President Putnam Investments, Putnam Management and Putnam Retail Management. Prior to 2003, Mr. Robie was Senior Vice President of United Asset Management Corporation - ------------------------------------------------------------------------------ Judith Cohen (6/7/45) 1993 Clerk and Assistant Clerk and Assistant Treasurer Treasurer, The Putnam Funds - ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------- Shares outstanding of your fund as of June 30, 2004 Putnam Putnam Putnam Putnam Putnam Asset Allocation: Asset Allocation: Asset Allocation: Capital Capital Putnam Balanced Conservative Growth Appreciation Opportunities Classic Equity Class Portfolio Portfolio portfolio Fund Fund Fund - ------------------------------------------------------------------------------------------------------------------------------- Class A shares 95,993,368.025 64,531,714.577 57,106,072.569 24,597,253.902 37,404,722.225 57,485,313.808 - ------------------------------------------------------------------------------------------------------------------------------- Class B shares 32,692,022.749 13,785,302.272 25,612,961.941 21,827,491.535 26,629,820.220 24,605,172.343 - ------------------------------------------------------------------------------------------------------------------------------- Class C shares 8,295,858.873 4,086,225.588 7,412,177.122 228,270.512 3,493,575.758 1,533,258.210 - ------------------------------------------------------------------------------------------------------------------------------- Class M shares 3,244,448.140 1,486,096.208 2,912,629.804 1,192,629.687 1,837,731.837 3,401,130.189 - ------------------------------------------------------------------------------------------------------------------------------- Class R shares 466.105 8,545.487 590.608 508.861 5,314.503 450.751 - ------------------------------------------------------------------------------------------------------------------------------- Class Y shares 47,729,788.526 9,693,798.394 41,458,786.998 -- 32,073,753.026 515,212.678 - ------------------------------------------------------------------------------------------------------------------------------- Putnam Putnam Putnam Putnam The George Putnam Convertible Discovery Equity Europe Putnam Global Income- Growth Income Equity Fund of Equity Class Growth Trust Fund Fund Fund Boston Fund - ------------------------------------------------------------------------------------------------------------------------------- Class A shares 36,168,736.914 43,767,457.352 117,200,286.049 17,382,387.707 197,325,638.829 263,154,841.917 - ------------------------------------------------------------------------------------------------------------------------------- Class B shares 6,693,004.380 34,817,128.206 48,947,130.445 13,198,993.976 66,804,263.959 71,713,792.240 - ------------------------------------------------------------------------------------------------------------------------------- Class C shares 636,493.905 3,747,374.476 4,749,175.700 306,604.557 4,525,210.900 4,919,927.946 - ------------------------------------------------------------------------------------------------------------------------------- Class M shares 451,781.356 2,350,205.665 8,215,957.428 1,368,089.142 13,173,350.732 4,972,254.759 - ------------------------------------------------------------------------------------------------------------------------------- Class R shares 64.820 61.275 57,974.398 59.946 7,780.970 2,486.327 - ------------------------------------------------------------------------------------------------------------------------------- Class Y shares 1,791,803.057 936,763.815 24,991,240.884 -- 50,226,658.936 4,013,662.360 - ------------------------------------------------------------------------------------------------------------------------------- Putnam Global Natural Resources Class Fund - ------------------------------------------------------------------------------------------------------------------------------- Class A shares 7,741,778.506 - ------------------------------------------------------------------------------------------------------------------------------- Class B shares 3,862,070.605 - ------------------------------------------------------------------------------------------------------------------------------- Class C shares 610,104.257 - ------------------------------------------------------------------------------------------------------------------------------- Class M shares 139,685.742 - ------------------------------------------------------------------------------------------------------------------------------- Class R shares 3,195.013 - ------------------------------------------------------------------------------------------------------------------------------- Class Y shares -- - ------------------------------------------------------------------------------------------------------------------------------- Putnam Putnam Putnam Putnam Putnam International Putnam International Fund For Growth Health Capital International Growth and Growth Opportunities Sciences Opportunities Equity Income Class and Income Fund Trust Fund Fund Fund - ------------------------------------------------------------------------------------------------------------------------------- Class A shares 709,835,850.421 53,147,445.648 31,087,893.953 29,503,648.804 176,351,471.058 30,189,580.993 - ------------------------------------------------------------------------------------------------------------------------------- Class B shares 199,419,389.849 50,858,664.830 20,263,891.527 20,741,266.860 78,604,775.824 24,553,062.650 - ------------------------------------------------------------------------------------------------------------------------------- Class C shares 6,431,550.562 4,509,250.055 889,452.897 3,325,369.874 15,337,243.237 2,157,516.192 - ------------------------------------------------------------------------------------------------------------------------------- Class M shares 8,668,908.019 1,801,173.067 682,895.580 816,860.986 5,346,348.201 1,399,524.355 - ------------------------------------------------------------------------------------------------------------------------------- Class R shares 2,305.026 361.279 257.096 159.591 26,911.696 108.851 - ------------------------------------------------------------------------------------------------------------------------------- Class Y shares 92,895,549.813 3,211,375.483 528,356.587 2,832,404.174 61,018,147.352 1,277,431.459 - ------------------------------------------------------------------------------------------------------------------------------- Putnam International Putnam Putnam Putnam New Putnam Mid Cap New New Opportunities Investors Value Opportunities Value Class Fund Fund Fund Fund Fund - ------------------------------------------------------------------------------------------------------------------------------- Class A shares 42,645,160.589 205,816,115.494 30,789,135.920 130,267,700.827 44,072,066.973 - ------------------------------------------------------------------------------------------------------------------------------- Class B shares 27,272,910.128 128,148,765.940 21,460,996.554 47,380,100.195 30,538,321.228 - ------------------------------------------------------------------------------------------------------------------------------- Class C shares 1,502,554.982 5,241,541.797 2,396,826.630 1,467,129.936 2,196,029.937 - ------------------------------------------------------------------------------------------------------------------------------- Class M shares 2,145,866.763 5,463,887.822 992,574.841 3,642,665.149 2,001,845.262 - ------------------------------------------------------------------------------------------------------------------------------- Class R shares 198.937 685.993 7,324.016 648.190 136.825 - ------------------------------------------------------------------------------------------------------------------------------- Class Y shares -- 69,175,202.490 2,008,251.032 21,213,401.877 5,875,676.779 - ------------------------------------------------------------------------------------------------------------------------------- Putnam Putnam OTC & Putnam Putnam Putnam Utilities Emerging Putnam Small Cap Small Cap Tax Smart Growth and Growth Research Growth Value Equity Income Class Fund Fund Fund Fund Fund Fund - ------------------------------------------------------------------------------------------------------------------------------- Class A shares 144,642,565.894 66,937,434.403 7,976,379.495 25,362,906.825 13,126,403.339 47,801,229.035 - ------------------------------------------------------------------------------------------------------------------------------- Class B shares 50,099,344.493 35,341,974.864 3,430,526.340 16,718,660.365 14,672,364.689 10,625,354.068 - ------------------------------------------------------------------------------------------------------------------------------- Class C shares 2,920,161.128 4,125,042.021 628,997.424 2,624,573.643 4,025,908.899 457,682.168 - ------------------------------------------------------------------------------------------------------------------------------- Class M shares 33,457,701.484 1,917,159.718 267,716.570 594,610.246 444,671.848 378,402.748 - ------------------------------------------------------------------------------------------------------------------------------- Class R shares 1,093.841 24,063.860 971.658 -- -- 123.526 - ------------------------------------------------------------------------------------------------------------------------------- Class Y shares 13,841,701.434 8,982,784.787 715,641.977 6,041,298.746 -- -- - ------------------------------------------------------------------------------------------------------------------------------- Putnam Putnam Vista Voyager Class Fund Fund - ------------------------------------------------------------------------------------------------------------------------------- Class A shares 225,218,033.614 588,008,712.618 - ------------------------------------------------------------------------------------------------------------------------------- Class B shares 98,159,298.250 178,986,950.561 - ------------------------------------------------------------------------------------------------------------------------------- Class C shares 4,834,037.852 8,175,207.453 - ------------------------------------------------------------------------------------------------------------------------------- Class M shares 6,014,271.797 9,052,652.807 - ------------------------------------------------------------------------------------------------------------------------------- Class R shares 1,772.410 15,294.502 - ------------------------------------------------------------------------------------------------------------------------------- Class Y shares 35,221,753.447 178,655,940.842 - -------------------------------------------------------------------------------------------------------------------------------
As of other publicly owned investment companies having differing investment objectives. For the names of such funds having investment objectives similar to those of your fund and the current rates of Putnam Management's annual fees as adviser or subadviser of such funds, see Exhibit B in this Proxy Statement. Putnam Management is also affiliated with The Putnam Advisory Company, Inc., which together with its subsidiaries furnishes investment advice to domestic and foreign institutional clients and mutual funds. Another affiliate, Putnam Fiduciary Trust Company, provides investment advice to institutional clients under its banking and fiduciary powers. The advisory fees charged by such firms to their institutional clients are generally at lower rates than those chargedJune 30, 2004, to the Putnam funds. The services performed and responsibilities assumed by these firms for such clients are, however, not as extensive as those performed or assumed by Putnam Management for the Putnam funds. Some officers and directors of Putnam Management, including some who are officers of your fund, serve as officers or directors of some of these affiliates. Putnam Management may also enter into other businesses. THE MANAGEMENT CONTRACT. Putnam Management serves as investment manager of your fund pursuant to a Management Contract. The management fee payable under the Contract is described above in Proposal 3. The fees paid to Putnam Management in the most recent fiscal year are shown below. Under the Contract, subject to such policies as the Trustees may determine, Putnam Management, at its expense, furnishes continuously an investment program for your fund and makes investment decisions on behalf of your fund. Subject to the control of the Trustees, Putnam Management manages, supervises, and conducts the other affairs and business of your fund, furnishes office space and equipment, provides bookkeeping and clerical services (including determination of your fund's net asset value, but excluding shareholder accounting services) and places all orders for the purchase and sale of your fund's portfolio securities. Putnam Management may place fund portfolio transactions with broker-dealers that furnish Putnam Management, without cost to it, certain brokerage and research services of value to Putnam Management and its affiliates in advising your fund and other clients. In so doing, Putnam Management may cause your fund to pay greater brokerage commissions than it might otherwise pay. Your fund also pays, or reimburses Putnam Management for, the compensation and related expenses of certain officers of your fund and their assistants. Currently, your fund reimburses Putnam Management for a portion of the compensation and related expenses of certain officers of your fund who provide certain administrative services to your fund and the other Putnam funds, each of which bears an allocated share of the costs. The aggregate amount of all such payments and reimbursements is determined annually by the Trustees, and the amount paid in the most recent fiscal year is set forth below. Putnam Management pays all other salaries of officers of your fund. Your fund pays all expenses not assumed by Putnam Management including, without limitation, auditing, legal, custodial, investor servicing agent, and shareholder reporting expenses. The Contract provides that Putnam Management shall not be subject to any liability to your fund or to any shareholder of your fund for any act or omission in the course of or connected with rendering services thereunder in the absence of willful misfeasance, bad faith, gross negligence, or reckless disregard of its obligations and duties. The Contract may be terminated without penalty upon 30 days' written notice by Putnam Management, by the Trustees, or by the affirmative vote of the holders of a "majority of the outstanding voting securities"knowledge of the fund, (as defined in the Investment Company Actfollowing persons owned beneficially or of 1940). It may be amended only by an affirmative voterecord 5% or more of the holders of a majority of the outstanding voting securities of your fund and by a majority of the Trustees who are not "interested persons" of your fund or Putnam Management. The Contract will terminate automatically if it is assigned, or unless its continuance is approved at least annually by either the Trustees or shareholders of the fund and in either case by a majority of the Trustees who are not "interested persons" of Putnam Management or your fund. PAYMENTS TO AFFILIATES OF PUTNAM MANAGEMENT. Putnam Mutual Funds is the principal underwriterany class of shares of your fundeach fund:
Putnam Putnam Putnam Asset Asset Asset Allocation: Allocation: Allocation: CLASS Balanced Portfolio Conservative Portfolio Growth Portfolio - ----------------------------------------------------------------------------------------------- A Putnam Investments LLC* (50.80%) - ----------------------------------------------------------------------------------------------- B - ----------------------------------------------------------------------------------------------- C Edward D. Jones & Co 201 Progress Pkwy Maryland Heights, MO 63043-3003 (9.00%) - ----------------------------------------------------------------------------------------------- M Edward D. Jones & Co Edward D. Jones & Co 201 Progress Pkwy 201 Progress Pkwy Maryland Heights, Maryland Heights, MO MO 63043-3003 MO 63043-3003 (7.70%) (5.40%) National City Bank National City Bank (5.10%) (29.70%) - ----------------------------------------------------------------------------------------------- R Putnam Investments MCB Trust Services Putnam Investments LLC* Cust. FBO LLC* (26.00%) (81.70%) (21.30%) MCB Trust Services MCB Trust Services MCB Trust Services (69.60%) (15.30%) (70.10%) MCB Trust Services Cust. FBO (8.30%) - ----------------------------------------------------------------------------------------------- Y Putnam Investments Putnam Investments Putnam Investments LLC* LLC* LLC* (67.80%) (62.50%) (47.40%) The Bank One Corporation c/o Putnam Fiduciary Trust Company, as trustee or agent Investors Way Norwood, MA 02062 (30.40%) - ----------------------------------------------------------------------------------------------- Putnam Putnam Putnam Capital Capital Classic Appreciation Opportunities Equity CLASS Fund Fund Fund - ----------------------------------------------------------------------------------------------- A Edward D. Jones & Co Edward D. Jones & Co Edward D. Jones & Co 201 Progress Pkwy 201 Progress Pkwy 201 Progress Pkwy Maryland Heights, Maryland Heights, Maryland Heights, MO 63043-3003 MO 63043-3003 MO 63043-3003 (11.70%) (7.20%) (26.90%) - ----------------------------------------------------------------------------------------------- B Edward D. Jones & Co 201 Progress Pkwy Maryland Heights, MO 63043-3003 (10.60%) - ----------------------------------------------------------------------------------------------- C Merrill, Lynch, Pierce, Edward D. Jones & Co Fenner & Smith Inc. 201 Progress Pkwy 4800 Deer Lake Dr E Maryland Heights, Jacksonville, FL 32246 MO 63043-3003 (6.10%) (6.60%) Merrill, Lynch, Pierce, Fenner & Smith Inc. 4800 Deer Lake Dr E Jacksonville, FL 32246 (5.20%) - ----------------------------------------------------------------------------------------------- M Edward D. Jones & Co Saxon & Co. Edward D. Jones & Co 201 Progress Pkwy P.O. Box 7780 201 Progress Pkwy Maryland Heights, Philadelphia, PA Maryland Heights, MO 63043-3003 19182-0001 MO 63043-3003 (6.20%) (11.50%) (20.60%) - ----------------------------------------------------------------------------------------------- R Putnam Investments LLC* A.G. Edwards & Putnam Investments (12.40%) Sons Inc. LLC* 1 N. Jefferson Ave. St. Louis, MO 63103-2205 (68.00%) MCB Trust Services MCB Trust Services National Quality Cust. FBO Cust. FBO Review Inc TTEE (87.50%) (24.20%) National Quality Review Inc - ----------------------------------------------------------------------------------------------- Y College Advantage Putnam Investments (23.60%) LLC* Putnam Investments LLC* (7.80%) - ----------------------------------------------------------------------------------------------- Putnam Putnam Putnam Putnam Convertible Discovery Equity Europe Income-Growth Growth Income Equity CLASS Trust Fund Fund Fund - ---------------------------------------------------------------------------------------------------------- A Edward D. Jones & Co Edward D. Jones & Co Edward D. Jones & Co Edward D. Jones & Co 201 Progress Pkwy 201 Progress Pkwy 201 Progress Pkwy 201 Progress Pkwy Maryland Heights, MO Maryland Heights, Maryland Heights, Maryland Heights, 63043-3003 MO 63043-3003 MO 63043-3003 MO 63043-3003 (13.10%) (13.80%) (20.20%) (6.20%) Charles Schwab (9.90%) - ---------------------------------------------------------------------------------------------------------- B Edward D. Jones & Co Edward D. Jones & Co Citigroup Global 201 Progress Pkwy 201 Progress Pkwy Markets Inc. Maryland Heights, MO Maryland Heights, 333 W 34th St. FL 3 63043-3003 MO 63043-3003 New York NY 10001- (5.30%) (10.20%) 2402 (5.40%) - ---------------------------------------------------------------------------------------------------------- C Merrill, Lynch, Pierce, Merrill, Lynch, Pierce, Merrill, Lynch, Pierce, Citigroup Global Fenner & Smith Inc. Fenner & Smith Inc. Fenner & Smith Inc. Markets Inc. 4800 Deer Lake Dr E 4800 Deer Lake Dr E 4800 Deer Lake Dr E 333 W 34th St. FL 3 Jacksonville, FL 32246 Jacksonville, FL 32246 Jacksonville, FL 32246 New York NY (12.00%) (5.50%) (8.90%) 10001-2402 (7.90%) Merrill, Lynch, Pierce, Fenner & Smith Inc. 4800 Deer Lake Dr E. Jacksonville, FL 32246 (11.20%) Citigroup Global Citigroup Global Markets Inc. Markets Inc. 333 W 34th St. FL 3 333 W 34th St. FL 3 New York New York NY 10001-2402 NY 10001-2402 (7.10%) (6.80%) - ---------------------------------------------------------------------------------------------------------- M Edward D. Jones & Co Edward D. Jones & Co Edward D. Jones & Co SMBC Friend 201 Progress Pkwy 201 Progress Pkwy 201 Progress Pkwy Securities Co., 7-12 Kabuto- Maryland Heights, Maryland Heights, Ltd. (66.40%) 63043-3003 MO 63043-3003 MO 63043-3003 (10.00%) (8.20%) (7.30%) Delaware Charter Guaranty & Trust 1013 Centre Road Wilmington, DE 19899-8936 (60.70%) - ---------------------------------------------------------------------------------------------------------- R Putnam Investments LLC* Putnam Investments LLC* Merrill, Lynch, Pierce, Putnam Investments (100.00%) (100.00%) Fenner & Smith Inc. LLC* (100.00%) 4800 Deer Lake Dr E Jacksonville, FL 32246 (11.70%) MCB Trust Services (32.00%) NFSC FEBO #251-076201 (15.90%) Federated Investors Trust Co. (15.20%) Martin Prakken & Tom O'Connell (7.90%) - ---------------------------------------------------------------------------------------------------------- Y Putnam Investments Putnam Investments LLC* Putnam Investments LLC* Profit Sharing Plan* State Street Corp TTEE (13.72%) United States Filter Corporation Retirement Savings Plan c/o Putnam Fiduciary Trust Company, as trustee or agent Investors Way Norwood, MA 02062-9105 Bank One Corporation TTEE Raymond James Financial, Inc.* (11.55%) Putnam Investments LLC* (5.58%) - ----------------------------------------------------------------------------------------------- The George Putnam Global Putnam Putnam Fund of Equity Global Natural CLASS Boston Fund Resources Fund - ----------------------------------------------------------------------------------------------- A Edward D. Jones & Co Edward D. Jones & Co 201 Progress Pkwy 201 Progress Pkwy Maryland Heights, Maryland Heights, MO 63043-3003 MO 63043-3003 (8.00%) (5.20%) Valic (18.70%) - ----------------------------------------------------------------------------------------------- B - ----------------------------------------------------------------------------------------------- C Merrill, Lynch, Pierce, Citigroup Global Fenner & Smith Inc. Markets Inc. 4800 Deer Lake Dr E 333 W 34th St. FL 3 Jacksonville, FL 32246 New York NY 10001- (5.30%) (11.70%) Merrill, Lynch, Pierce, Fenner & Smith Inc. 4800 Deer Lake Dr. E Jacksonville, FL 32246 (7.10%) - ----------------------------------------------------------------------------------------------- M Edward D. Jones & Co 201 Progress Pkwy Maryland Heights, MO 63043-3003 (8.40%) - ----------------------------------------------------------------------------------------------- R Putnam Investments Wachovia Bank LLC* (6.80%) (98.20%) Wexford Securities LLC. FBO (27.60%) Vito Spinosa (24.70%) MCB Trust Services Cust. FBO (14.00%) - ----------------------------------------------------------------------------------------------- The Putnam Putnam Fund for Growth Growth and Opportunities Putnam Health CLASS Income Fund Sciences Trust - ----------------------------------------------------------------------------------------------- A Edward D. Jones & Co Edward D. Jones & Co Edward D. Jones & Co 201 Progress Pkwy 201 Progress Pkwy 201 Progress Pkwy Maryland Heights, Maryland Heights, Maryland Heights, MO 63043-3003 MO 63043-3003 MO 63043-3003 (12.30%) (12.70%) Merrill, Lynch, Pierce, Fenner & Smith Inc. 4800 Deer Lake Dr E Jacksonville, FL 32246 (7.50%) - ----------------------------------------------------------------------------------------------- B Edward D. Jones & Co Citigroup Global 201 Progress Pkwy Markets Inc. Maryland Heights, 333 W 34th St. FL 3 MO 63043-3003 New York NY 10001- (6.40%) Merrill, Lynch, Pierce, Fenner & Smith Inc. 4800 Deer Lake Dr E Jacksonville, FL 32246 (9.30%) - ----------------------------------------------------------------------------------------------- C Edward D. Jones & Co Merrill, Lynch, Pierce, Citigroup Global 201 Progress Pkwy Fenner & Smith Inc. Markets Inc. Maryland Heights, 4800 Deer Lake Dr E 333 W 34th St. FL 3 MO 63043-3003 Jacksonville, FL 32246 New York NY 10001- (7.60%) (10.10%) Citigroup Global Merrill, Lynch, Pierce, Markets Inc. Fenner & Smith Inc. 333 W 34th St. FL 3 4800 Deer Lake Dr E New York NY 10001- Jacksonville, FL 32246 (6.00%) (14.00%) - ----------------------------------------------------------------------------------------------- M Edward D. Jones & Co Edward D. Jones & Co Edward D. Jones & Co 201 Progress Pkwy 201 Progress Pkwy 201 Progress Pkwy Maryland Heights, Maryland Heights, Maryland Heights, MO 63043-3003 MO 63043-3003 MO 63043-3003 (7.60%) (6.30%) Frontier Trust Co Citigroup Global (5.60%) Markets Inc. 333 W 34th St. FL 3 New York NY 10001- (6.60%) - ----------------------------------------------------------------------------------------------- R Putnam Investments MCB Trust Services LLC* (26.10%) (63.60%) MCB Trust Services Wexford Securities Cust. FBO LLC. FBO (73.80%) (18.10%) Bryce Edwards & (12.90%) - ----------------------------------------------------------------------------------------------- Y - ----------------------------------------------------------------------------------------------- Putnam Putnam International Putnam International Capital International Growth and CLASS Opportunities Fund Equity Fund Income Fund - ----------------------------------------------------------------------------------------------- A Edward D. Jones & Co Edward D. Jones & Co 201 Progress Pkwy 201 Progress Pkwy Maryland Heights, Maryland Heights, MO 63043-3003 MO 63043-3003 (6.00%) Charles Schwab & Co Inc (10.40%) - ----------------------------------------------------------------------------------------------- B Citigroup Global Citigroup Global Edward D. Jones & Co Markets Inc. Markets Inc. 201 Progress Pkwy 333 W 34th St. FL 3 333 W 34th St. FL 3 Maryland Heights, New York NY 10001- New York NY 10001- MO 63043-3003 (5.10%) (6.40%) Merrill, Lynch, Pierce, Merrill, Lynch, Pierce, Fenner & Smith Inc. Fenner & Smith Inc. 4800 Deer Lake Dr E 4800 Deer Lake Dr E Jacksonville, FL 32246 Jacksonville, FL 32246 (6.00%) (7.90%) - ----------------------------------------------------------------------------------------------- C Citigroup Global Merrill, Lynch, Pierce, Edward D. Jones & Co Markets Inc. Fenner & Smith Inc. 201 Progress Pkwy 333 W 34th St. FL 3 4800 Deer Lake Dr E Maryland Heights, New York NY 10001- Jacksonville, FL 32246 MO 63043-3003 (10.80%) (17.60%) Merrill, Lynch, Pierce, Citigroup Global Citigroup Global Fenner & Smith Inc. Markets Inc. Markets Inc. 4800 Deer Lake Dr E 333 W 34th St. FL 3 333 W 34th St. FL 3 Jacksonville, FL 32246 New York NY 10001- New York NY 10001- (14.00%) (9.20%) - ----------------------------------------------------------------------------------------------- M Edward D. Jones & Co 201 Progress Pkwy Maryland Heights, MO 63043-3003 - ----------------------------------------------------------------------------------------------- R Putnam Investments LLC* Federated Investors Putnam Investments (46.10%) Trust Company LLC* (60.80%) MCB Trust Services Reliance Trust (41.90%) Company (14.20%) MCB Trust Services Bisys Retirement Cust. FBO (9.80%) Services (11.00%) Merrill, Lynch, Pierce, Fenner & Smith Inc. 4800 Deer Lake Dr E Jacksonville, FL 32246 (5.30%) - ----------------------------------------------------------------------------------------------- Y - ----------------------------------------------------------------------------------------------- Putnam International New Putnam Opportunities Investors Putnam Mid Cap CLASS Fund Fund Value Fund - ----------------------------------------------------------------------------------------------- A Edward D. Jones & Co Edward D. Jones & Co 201 Progress Pkwy 201 Progress Pkwy Maryland Heights, Maryland Heights, MO 63043-3003 MO 63043-3003 - ----------------------------------------------------------------------------------------------- B Merrill, Lynch, Pierce, Fenner & Smith Inc. 4800 Deer Lake Dr E Jacksonville, FL 32246 - ----------------------------------------------------------------------------------------------- C Merrill, Lynch, Pierce, Edward D. Jones & Co Fenner & Smith Inc. 201 Progress Pkwy 4800 Deer Lake Dr E Maryland Heights, Jacksonville, FL 32246 MO 63043-3003 Citigroup Global Markets Inc. 333 W 34th St. FL 3 New York NY 10001- - ----------------------------------------------------------------------------------------------- M Merrill, Lynch, Pierce, Fenner & Smith Inc. 4800 Deer Lake Dr E Jacksonville, FL 32246 - ----------------------------------------------------------------------------------------------- R Putnam Investments LLC* - ----------------------------------------------------------------------------------------------- Y - ----------------------------------------------------------------------------------------------- Putnam New Opportunities Putnam New CLASS Fund Value Fund - ----------------------------------------------------------------------------------------------- A Edward D. Jones & Co Edward D. Jones & Co 201 Progress Pkwy 201 Progress Pkwy Maryland Heights, Maryland Heights, MO 63043-3003 MO 63043-3003 - ----------------------------------------------------------------------------------------------- B Citigroup Global Edward D. Jones & Co Markets Inc. 201 Progress Pkwy 333 W 34th St. FL 3 Maryland Heights, New York NY 10001- MO 63043-3003 - ----------------------------------------------------------------------------------------------- C Merrill, Lynch, Pierce, Merrill, Lynch, Pierce, Fenner & Smith Inc. Fenner & Smith Inc. 4800 Deer Lake Dr E 4800 Deer Lake Dr E Jacksonville, FL 32246 Jacksonville, FL 32246 Citigroup Global Markets Inc. 333 W 34th St. FL 3 New York NY 10001- - ----------------------------------------------------------------------------------------------- M Edward D. Jones & Co Edward D. Jones & Co 201 Progress Pkwy 201 Progress Pkwy Maryland Heights, Maryland Heights, MO 63043-3003 MO 63043-3003 - ----------------------------------------------------------------------------------------------- R Putnam Investments LLC* Putnam Investments LLC* - ----------------------------------------------------------------------------------------------- Y - ----------------------------------------------------------------------------------------------- Putnam Putnam Putnam Small Cap OTC & Emerging Research Growth Growth Fund Fund Fund - ----------------------------------------------------------------------------------------------- A Edward D. Jones & Co 201 Progress Pkwy Maryland Heights, MO 63043-3003 - ----------------------------------------------------------------------------------------------- B Edward D. Jones & Co 201 Progress Pkwy Maryland Heights, MO 63043-3003 - ----------------------------------------------------------------------------------------------- C Citigroup Global Citigroup Global Citigroup Global Markets Inc. Markets Inc. Markets Inc. 333 W 34th St. FL 3 333 W 34th St. FL 3 333 W 34th St. FL 3 New York NY 10001- New York NY 10001- New York NY 10001- - ----------------------------------------------------------------------------------------------- M Edward D. Jones & Co 201 Progress Pkwy Maryland Heights, MO 63043-3003 - ----------------------------------------------------------------------------------------------- R Putnam Investments LLC* - ----------------------------------------------------------------------------------------------- Y - ----------------------------------------------------------------------------------------------- Putnam Putnam Putnam Utilities Small Cap Tax Smart Growth and Putnam CLASS Value Fund Equity Fund Income Fund Vista Fund - ----------------------------------------------------------------------------------------------------------- A Edward D. Jones & Co Edward D. Jones & Co Edward D. Jones & Co Edward D. Jones & Co 201 Progress Pkwy 201 Progress Pkwy 201 Progress Pkwy 201 Progress Pkwy Maryland Heights, Maryland Heights, Maryland Heights, Maryland Heights, MO 63043-3003 MO 63043-3003 MO 63043-3003 MO 63043-3003 (10.00%) - ----------------------------------------------------------------------------------------------------------- B Merrill, Lynch, Pierce, Fenner & Smith Inc. 4800 Deer Lake Dr E Jacksonville, FL 32246 (9.70%) - ----------------------------------------------------------------------------------------------------------- C Merrill, Lynch, Pierce, Fenner & Smith Inc. 4800 Deer Lake Dr E Jacksonville, FL 32246 (9.50%) - ----------------------------------------------------------------------------------------------------------- M Edward D. Jones & Co Pershing, LLC Edward D. Jones & Co 201 Progress Pkwy P.O. Box 2052 201 Progress Pkwy Maryland Heights, Jersey City, NJ Maryland Heights, MO 63043-3003 07303-2052 MO 63043-3003 (5.30%) - ----------------------------------------------------------------------------------------------------------- R - ----------------------------------------------------------------------------------------------------------- Y - ----------------------------------------------------------------------------------------------------------- Putnam CLASS Voyager Fund - ----------------------------------------------------------------------------------------------- A Edward D. Jones & Co 201 Progress Pkwy Maryland Heights, MO 63043-3003 - ----------------------------------------------------------------------------------------------- B Edward D. Jones & Co 201 Progress Pkwy Maryland Heights, MO 63043-3003 - ----------------------------------------------------------------------------------------------- C Edward D. Jones & Co 201 Progress Pkwy Maryland Heights, MO 63043-3003 Citigroup Global Markets Inc. 333 W 34th St. FL 3 New York NY 10001- - ----------------------------------------------------------------------------------------------- M Edward D. Jones & Co 201 Progress Pkwy Maryland Heights, MO 63043-3003 - ----------------------------------------------------------------------------------------------- R - ----------------------------------------------------------------------------------------------- Y - ----------------------------------------------------------------------------------------------- * The address for the name listed is: c/o Putnam Fiduciary Trust Company, as trustee or agent, Investors Way, Norwood, MA 02062-9105. ** The address for the name listed is: c/o Putnam Fiduciary Trust Company, as service provider, Investors Way, Norwood, MA 02062-9105.
Exhibit A THE PUTNAM FUNDS Board Policy and Nominating Committee Charter * This Committee reviews matters pertaining to the operations of the other continuously offered Putnam funds. Putnam Fiduciary Trust Company is your fund's investor servicing agentBoard of Trustees and custodian. The amount of sales charges retained by Putnam Mutual Fundsits Committees and the investor servicing feesconduct of legal affairs for the Funds. The Committee evaluates and custodian fees paidrecommends all candidates for election as Trustees and recommends the appointment of members and chairs of each board committee. The Committee also reviews policy matters affecting the operation of the Board and its independent staff and make recommendations to the Board as appropriate. The Committee also oversees the voting of proxies associated with portfolio investments of The Putnam FiduciaryFunds with the goal of ensuring that these proxies are voted in the best interest of the Funds' shareholders. The Committee is comprised exclusively of Independent Trustees. Exhibit B Current Fundamental Investment Restrictions with Respect to Borrowing Putnam Asset Allocations: Balanced Portfolio Putnam Asset Allocation: Conservative Portfolio Putnam Asset Allocation: Growth Portfolio Putnam Capital Appreciation Fund Putnam Classic Equity Fund Putnam Discovery Growth Fund Putnam Equity Income Fund Putnam Europe Equity Fund The George Putnam Fund Putnam Global Income Trust Company in your fund's most recent fiscal year are set forth below. Under its class A Distribution Plan, yourThe Putnam Fund for Growth and Income Putnam Growth Opportunities Fund Putnam Health Sciences Fund Putnam International Capital Opportunities Fund Putnam International Equity Fund Putnam International Growth and Income Fund Putnam International New Opportunities Fund Putnam New Opportunities Fund Putnam New Value Fund Putnam OTC & Emerging Growth Fund Putnam Research Fund Putnam Utilities Growth and Income Fund "The fund may make payments to Putnam Mutual Fundsnot. . . [b]orrow money in excess of 10% of the value (taken at the annual ratelower of up to 0.35%cost or current value) of the averagefund's total assets (not including the amount borrowed) at the time the borrowing is made, and then only from banks as a temporary measure to facilitate the meeting of redemption requests (not for leverage) which might otherwise require the untimely disposition of portfolio investments or for extraordinary or emergency purposes. Such borrowings will be repaid before any additional investments are purchased. Putnam Voyager Fund: "The fund may not. . . [b]orrow more than 50% of the value of its total assets (excluding borrowings and stock index futures contracts and call options on stock index futures contracts and stock indices) less liabilities other than borrowings and stock index futures contracts and call options on stock index futures and stock indices. Putnam Vista Fund: "The fund may not. . . [b]orrow money in excess of 5% of its net assets (taken at current value) and then only as a temporary measure for extraordinary or emergency reasons and not for investment purposes. (The fund may borrow only from banks and immediately after any such borrowings there must be an asset coverage (total assets of the fund attributableincluding the amount borrowed less liabilities other than borrowings) of at least 300% of the amount of all borrowings. In the event that, due to class A shares. At present, payments undermarket decline or other reasons, such asset coverage should at any time fall below 300%, the Plan are limitedfund is required within three days not including Sundays and holidays to reduce the amount of its borrowings to the annual rateextent necessary to cause the asset coverage of 0.25%such borrowings to be at least 300%. If this should happen, the fund may have to sell securities at a time when it would be disadvantageous to do so.) Putnam Global Equity Fund: "The fund may not [b]orrow money in excess of average net assets. Under10% of its class Bgross assets (taken at cost) and class M Distribution Plans, yourthen only as a temporary measure for extraordinary or emergency reasons and not for investment. (The fund compensatesmay borrow only from banks and immediately after any such borrowings there must be an asset coverage (total assets of the fund including the amount borrowed less liabilities other than such borrowings) of at least 300% of the amount of all borrowings. In the event that, due to market decline or other reasons, such asset coverage should at any time fall below 300%, the fund is required within three days not including Sundays and holidays to reduce the amount of its borrowings to the extent necessary to cause the asset coverage of such borrowings to be at least 300%. If this should happen, the fund may have to sell securities at a time when it would be disadvantageous to do so.) Putnam Mutual FundsMoney Market Fund: "The fund may not. . . [b]orrow money in excess of one-third of the value (taken at the annual ratelower of upcost or current value) of its total assets (not including the amount borrowed) at the time the borrowing is made, and then only as a temporary measure to 1.00%facilitate the meeting of average net assets attributable to class B sharesredemption requests (not for leverage) which might otherwise require the untimely disposition of portfolio investments or for extraordinary or emergency purposes. Such borrowings will be repaid before any additional investments are made. Interest paid on such borrowings would reduce the yield on the fund's investments." Putnam Global Natural Resources Fund: "The fund may not. . . [b]orrow money, except for temporary or emergency purposes and class M shares, as the case may be, although for class M shares, a limitthen in an amount not in excess of 0.75% of average net assets is currently in effect. Payments under the plans compensate Putnam Mutual Funds for services provided and expenses incurred by it in promoting the sale of shares of your fund, reducing redemptions or maintaining or improving services provided to shareholders by Putnam Mutual Funds or by dealers. The fees paid to Putnam Mutual Funds under the plans in your fund's most recent fiscal year are set forth in "Further information about your fund." A substantial portion of payments made to Putnam Mutual Funds under these plans is used to pay or reimburse Putnam Mutual Funds for payment of service fees paid to investment dealers for their ongoing services to shareholders. ASSETS AND SHARES OUTSTANDING OF YOUR FUND AS OF MARCH 29, 1996 Net assets $ Class A shares outstanding and authorized to vote shares Class B shares outstanding and authorized to vote shares Class M shares outstanding and authorized to vote shares Class Y shares outstanding and authorized to vote shares Persons beneficially owning more than 5% of the fund's class A shares Persons beneficially owning more thanmarket value of its total assets (not including the amount borrowed)." Putnam Convertible Income-Growth Trust: "The fund may not. . . [b]orrow money in excess of 5% of its net assets (taken at the fund's class B shares Persons beneficially owning more than 5%lower of the fund's class M shares PERSONS BENEFICIALLY OWNING MORE THAN 5% OF THE FUND'S CLASS Y SHARES For the Fiscal Year Ended July 31, 1995 MANAGEMENT CONTRACT - -------------------------------------------------------------- The management contract dated December 21, 1988, was approved by the shareholders on December 8, 1988cost or current value) and was last approved by the Trustees on January 4, 1996. Management fee paidthen only from banks as a temporary measure for extraordinary or emergency reasons and not for investment purposes." Exhibit C Current Fundamental Investment Restrictions with Respect to Diversification of Investments Putnam Management $4,618,445 Reimbursement paid by your fund toDiscovery Growth Fund Putnam Management for compensation and related expenses including employee benefit plan contributions for your fund's Executive Vice President (Charles E. Porter), Senior Vice President (Patricia C. Flaherty), Clerk (Beverly Marcus), and their assistants $31,254 PAYMENTS TO AFFILIATES - -------------------------------------------------------------- Sales charges on sales of class A shares retained byEquity Income Fund Putnam Mutual Funds after payments to selling broker-dealers $299,871 Sales charges on sales of class M shares retained by Putnam Mutual Funds after payments to selling broker-dealers $9,902 Deferred sales charges on class A share redemptions retained by Putnam Mutual Funds $6,203 Deferred sales charges on class B share redemptions retained by Putnam Mutual Funds $388,691 Payments under Class A Distribution Plan to Putnam Mutual Funds $2,395,857 Payments under Class B Distribution Plan to Putnam Mutual Funds $1,784,739 Payments under Class M Distribution Plan to Putnam Mutual Funds $13,891 Investor servicing and custodian fees paid to Putnam Fiduciary Trust Company (before application of credits, if any) $ EXHIBIT A This exhibit provides the management contract and the proposed additions and deletions. The existing additions are indicated by the ((BOLDFACE)) and deletions are indicated by //italics//. THE GEORGE PUTNAM FUND OF BOSTON MANAGEMENT CONTRACT Management Contract dated as of //December 21, 1988// ((JULY , 1996)) betweenEurope Equity Fund The George Putnam Fund of Boston a Massachusetts business trust (the "Fund"),Putnam Global Equity Fund Putnam Global Natural Resources Fund The Putnam Fund for Growth and //THE// PUTNAM ((INVESTMENT)) MANAGEMENT //COMPANY//, INC., a //Delaware// ((MASSACHUSETTS)) corporation (the "Manager")Income Putnam International Equity Fund Putnam Investors Fund Putnam New Opportunities Fund Putnam OTC & Emerging Growth Fund Putnam Utilities Growth and Income Fund Putnam Vista Fund Putnam Voyager Fund "The fund may not. . WITNESSETH: That. [w]ith respect to 75% of its total assets, invest in considerationsecurities of any issuer if, immediately after such investment, more than 5% of the mutual covenants herein contained, it is agreed as follows: 1. SERVICES TO BE RENDERED BY MANAGER TO FUND. (a) The Manager, at its expense, will furnish continuously an investment program for the Fund, will determine what //securities// ((INVESTMENTS)) shall be purchased, held, sold or exchanged by the Fund and what portion, if any, of thetotal assets of the fund (taken at current value) would be invested in the securities of such issuer; provided that this limitation does not apply to obligations issued or guaranteed as to interest or principal by the U.S. government or its agencies or instrumentalities." Putnam Capital Opportunities Fund shall be held uninvested and shall, on behalfPutnam Classic Equity Fund Putnam Growth Opportunities Fund Putnam International Capital Opportunities Fund Putnam International New Opportunities Fund Putnam Mid Cap Value Fund Putnam New Value Fund Putnam Research Fund Putnam Small Cap Growth Fund Putnam Small Cap Value Fund "The fund may not. . . [w]ith respect to 75% of its total assets, invest in securities of any issuer if, immediately after such investment, more than 5% of the Fund, make changestotal assets of the fund (taken at current value) would be invested in the Fund's investments. Subject alwayssecurities of such issuer; provided that this limitation does not apply to obligations issued or guaranteed as to interest or principal by the U.S. government or its political subdivisions." Putnam Asset Allocation: Balanced Portfolio, Putnam Asset Allocation: Conservative Portfolio, and Putnam Asset Allocation: Growth Portfolio: "The fund may not. . . [w]ith respect to 75% of its total assets, invest in the securities of any issuer if, immediately after such investment, more than 5% of the total assets of the fund (taken at current value) would be invested in the securities of such issuer; provided that this limitation does not apply to obligations issued or guaranteed as to interest and principal by the U.S. government or its agencies or instrumentalities." Putnam Health Sciences Trust: "The fund may not. . . [w]ith respect to 50% of its total assets, invest in securities of any issuer if, immediately after such investment, more than 5% of the total assets of the fund (taken at current value) would be invested in the securities of such issuer; provided that this limitation does not apply to obligations issued or guaranteed as to interest or principal by the U.S. government or its agencies or instrumentalities." Exhibit D Current Provisions of Agreements and Declarations of Trust with Respect to Redemptions of Fund Shares Putnam Convertible Income-Growth Trust, Putnam Equity Income Fund, Putnam Global Equity Fund, Putnam Global Natural Resources Fund, Putnam Health Sciences Trust, Putnam International Equity Fund, Putnam Investors Fund, Putnam OTC & Emerging Growth Fund, Putnam Vista Fund and Putnam Voyager Fund: Article VI Distributions, Redemptions and Repurchases Redemption and Repurchases Section 2. The Trust shall purchase such Shares as are offered by any Shareholder for redemption, upon the presentation of any certificate for the Shares to be purchased, a proper instrument of transfer and a request directed to the control of the Trustees of the Fund and except for the functions carried outTrust or a person designated by the officers and personnel referred toTrust that the Trust purchase such Shares, or in Section 1(d), the Manager will also manage, supervise and conduct theaccordance with such other affairs and business of the Fund and matters incidental thereto. In the performance of its duties, the Manager will comply with the provisions of the Agreement and Declaration of Trust and By-laws of the Fund and its stated investment objectives, policies and restrictions, and will use its best efforts to safeguard and promote the welfare of the Fund and to comply with other policies whichprocedures for redemption as the Trustees may from time to time determine //,//authorize; and shall exercise the same care and diligence expected ofTrust will pay therefor the Trustees. (b) The Manager, at its expense, except as such expense is paid by the Fund as provided in Section 1(d), will furnish (1) all necessary investment and management facilities, including salaries of personnel, required for it to execute its duties faithfully; (2) suitable office space for the Fund; and (3) administrative facilities, including bookkeeping, clerical personnel and equipment necessary for the efficient conduct of the affairs of the Fund, including determination of the Fund's net asset value but excluding shareholder accounting services. Exceptthereof, as otherwise providednext determined in accordance with the Bylaws. Payment for said Shares shall be made by the Trust to the Shareholder within seven days after the date on which the request is made. The obligation set forth in this Section 1(d),2 is subject to the Manager will payprovision that in the compensation,event that any time the New York Stock Exchange is closed for other than customary weekends or holidays, or, if any,permitted by the rules of the officers[Securities and Exchange Commission], during periods when trading on the Exchange is restricted or during any emergency which makes it impractical for the Trust to dispose of its investments or to determine fairly the value of its net assets, or during any other period permitted by order of the Fund. (c) The Manager, at its expense, shall place all orders[Securities and Exchange Commission] for the protection of investors, such obligation may be suspended or postponed by the Trustees. The Trust may also purchase or repurchase Shares at a price not exceeding the net asset value of such Shares in effect when the purchase or repurchase or any contract to purchase or repurchase is made. Putnam Asset Allocation: Growth Portfolio, Putnam Asset Allocation: Balanced Portfolio, Putnam Asset Allocation: Conservative Portfolio, Putnam Capital Opportunities Fund, Putnam Classic Equity Fund, Putnam Discovery Growth Fund, Putnam Europe Equity Fund, Putnam Growth Opportunities Fund, Putnam International Capital Opportunities Fund, Putnam International Growth and saleIncome Fund, Putnam International New Opportunities Fund, Putnam Mid Cap Value Fund, Putnam New Opportunities Fund, Putnam New Value Fund, Putnam Research Fund, Putnam Small Cap Growth Fund, Putnam Small Cap Value Fund and Putnam Utilities Growth and Income Fund: Article VI Distributions, Redemptions and Repurchases Redemption and Repurchases Section 2. The Trust shall purchase such Shares as are offered by any Shareholder for redemption, upon the presentation of portfolio investmentsany certificate for the Fund's account with brokersShares to be purchased, a proper instrument of transfer and a request directed to the Trust or dealers selecteda person designated by the Manager. InTrust that the selection ofTrust purchase such brokersShares, or dealers and the placing ofin accordance with such orders, the Manager shall use its best efforts to obtainother procedures for the Fund the most favorable price and execution available, except to the extent it may be permitted to pay higher brokerage commissions for brokerage and research services as described below. In using its best efforts to obtain for the Fund the most favorable price and execution available, the Manager, bearing in mind the Fund's best interests at all times, shall consider all factors it deems relevant, including by way of illustration, price, the size of the transaction, the nature of the market for the security, the amount of the commission, the timing of the transaction taking into account market prices and trends, the reputation, experience and financial stability of the broker or dealer involved and the quality of service rendered by the broker or dealer in other transactions. Subject to such policiesredemption as the Trustees ((OF THE FUND)) may determine, the Manager shall not be deemed to have acted unlawfully or to have breached any duty created by this Contract or otherwise solely by reason of its having caused the Fund to pay a broker or dealer that provides brokerage and research services to the Manager an amount of commission for effecting a portfolio investment transaction in excess of the amount of commission another broker or dealer would have charged for effecting that transaction, if the Manager determines in good faith that such amount of commission was reasonable in relation to the value of the brokerage and research services provided by such broker or dealer, viewed in terms of either that particular transaction or the Manager's overall responsibilities with respect to the Fund and to other clients of the Manager as to which the Manager exercises investment discretion. The Manager agrees that in connection with purchases or sales of portfolio investments for the Fund's account, neither the Manager or any officer, director, employee or agent of the Manager shall act as a principal or receive any commission other than as provided in Section 3. (d) The Fund will pay or reimburse the Manager for //(i)// the compensation //of the Vice Chairman// ((IN WHOLE OR IN PART OF SUCH OFFICERS)) of the Fund and //of// persons assisting //him in this office, as// ((THEM AS MAY BE)) determined from time to time authorize; and the Trust will pay therefor the net asset value thereof, as next determined in accordance with the Bylaws, less any redemption charge fixed by the Trustees. Payment for said Shares shall be made by the Trust to the Shareholder within seven days after the date on which the request is made. The obligation set forth in this Section 2 is subject to the provision that in the event that any time the New York Stock Exchange is closed for other than customary weekends or holidays, or, if permitted by the rules of the [Securities and Exchange Commission], during periods when trading on the Exchange is restricted or during any emergency which makes it impractical for the Trust to dispose of its investments or to determine fairly the value of its net assets, or during any other period permitted by order of the [Securities and Exchange Commission] for the protection of investors, such obligation may be suspended or postponed by the Trustees. The Trust may also purchase or repurchase Shares at a price not exceeding the net asset value of such Shares in effect when the purchase or repurchase or any contract to purchase or repurchase is made. The George Putnam Fund of Boston: Article IV Rights and Privileges of Beneficiaries Right to Sell Shares to Trust Section 4. The Trust shall purchase such shares as are offered by any beneficiary for redemption, upon the presentation of the certificate or certificates therefore, if any, to the Trust or to the Transfer Agent, duly endorsed or accompanied by a proper instrument of transfer, together with a request that the Trust purchase the shares represented thereby; and the Trust will pay therefor in cash the liquidating value of the shares so presented determined as of such time as the Trustees may from time to time specify, subject to any applicable rule of the Securities and Exchange Commission adopted under the Investment Company Act of 1940. For the protection of the remaining beneficiaries the Trustees reserve the right to demand not more than seven (7) full business days' written notice of the request to purchase such shares at such liquidating value, which period may be extended by the Trustees offor such time as the Fund //, (ii) the compensation in wholeNew York Stock Exchange may at any time be closed for business or in// ((. THE FUND WILL ALSO PAY OR REIMBURSE THE MANAGER FOR ALL OR)) part of //open upon a restricted basis, all under such other officers of the Fundreasonable rules and persons assisting themregulations as may be determined by the Trustees from time to timetime. The Putnam Fund for Growth and Income: Article IV Rights and Privileges of Beneficiaries Right to Sell Shares to Trust Section 4. The Trust shall purchase such shares as are offered by any beneficiary for redemption, upon the Trusteespresentation of the Fund, and (iii)// the cost of suitable office space, utilities, support services and equipment //of the Vice Chairman// ((ATTRIBUTABLE TO SUCH OFFICERS)) and persons //assisting him and//, as ((MAY BE)) determined //from time to time// ((IN EACH CASE)) by the Trustees of the Fund //, allcertificate or a part of such costs attributablecertificates therefore, if any, to the other officersTrust or to the Transfer Agent, duly endorsed or accompanied by a proper instrument of transfer, together with a request that the Trust purchase the shares represented thereby; and persons assisting them whose compensation is paid in whole or in part by the Fund//. The FundTrust will pay the fees, if any, of the Trustees of the Fund. (e) The Manager shall not be obligated to pay any expenses of or for the Fund not expressly assumed by the Manager pursuant to this Section 1 other than as providedtherefor in Section 3. 2. OTHER AGREEMENTS, ETC. It is understood that any ofcash the shareholders, Trustees, officers and employees of the Fund may be a shareholder, director, officer or employee of, or be otherwise interested in, the Manager, and in any person controlled by or under common control with the Manager, and that the Manager and any person controlled by or under common control with the Manager may have an interest in the Fund. It is also understood that the Manager and //persons// ((ANY PERSON)) controlled by or under common control with the Manager have and may have advisory, management ((,)) service or other contracts with other organizations and persons, and may have other interests and business. 3. COMPENSATION TO BE PAID BY THE FUND TO THE MANAGER. The Fund will pay to the Manager as compensation for the Manager's services rendered, for the facilities furnished and for the expenses borne by the Manager pursuant to paragraphs (a), (b), (c) and (e) of Section 1, a fee, computed and paid quarterly at the annual rate of: (a) //0.6%// ((0.65%)) of the first //$100// (($500)) million of the average net asset value of the Fund; (b) //0.5%// ((0.55%))shares so presented determined as of such time as the Trustees may from time to time specify, subject to any applicable rule of the next //$100// (($500)) millionSecurities and Exchange Commission adopted under the Investment Company Act of such average net asset value; (c) //0.4%// ((0.50%))1940. For the protection of the next //$300// (($500)) million of such average net asset value; (d) //0.325%// ((0.45%))remaining beneficiaries the Trustees reserve the right to demand not more than seven (7) days' written notice of the next //$500 million// (($5 BILLION)) ofrequest to purchase such average net asset value; //and (e) 0.3% of any amount over $1// (((E) 0.425% OF THE NEXT $5)) billion of such average net asset value ((; (F) 0.405% OF THE NEXT $5 BILLION OF SUCH AVERAGE NET ASSET VALUE; (G) 0.39% OF THE NEXT $5 BILLION OF SUCH AVERAGE NET ASSET VALUE; AND (H) 0.38% OF ANY AMOUNT THEREAFTER)). Such average net asset value shall be determined by taking an average of all of the determinations ofshares at such net asset value, during such quarter at the close of business on each business day during such quarter while this Contract is in effect. Such fee shallwhich period may be payable for each fiscal quarter within 30 days after the close of such quarter. The fees payable by the Fund to the Manager pursuant to this Section 3 shall be reduced by any commissions, fees, brokerage or similar payments received by the Manager or any affiliated person of the Manager in connection with the purchase and sale of portfolio investments of the Fund, less any direct expenses approvedextended by the Trustees incurred by the Manager or any affiliated person of the Manager in connection with obtaining such payments. In the event that expenses of the Fund for any fiscal year should exceed the expense limitation on investment company expenses imposed by any statute or regulatory authority of any jurisdiction in which shares of the Fund are qualified for offer and sale, the compensation due the Manager for such fiscal year shall be reduced bytimes as the amount of such excess by a reduction or refund thereof. If the Manager shall serve for less than the whole of a quarter, the foregoing compensation shall be prorated. 4. ASSIGNMENT TERMINATES THIS CONTRACT; AMENDMENTS OF THIS CONTRACT. This Contract shall automatically terminate, without the payment of any penalty, in the event of its assignment; and this Contract shall not be amended unless such amendment be approved at a meeting by the affirmative vote of a majority of the outstanding shares of the Fund, and by the vote, cast in person at a meeting called for the purpose of voting on such approval, of a majority of the Trustees of the Fund who are not interested persons of the Fund or of the Manager. 5. EFFECTIVE PERIOD AND TERMINATION OF THIS CONTRACT. This Contract shall become effective upon its execution, and shall remain in full force and effect continuously thereafter (unless terminated automatically as set forth in Section 4) until terminated as follows: (a) Either party heretoNew York Stock Exchange may at any time terminate this Contractbe closed for business other than customary week-end and holiday closings or open upon a restricted basis, all under such reasonable rules and regulations as may be determined by not more than sixty days' nor less than thirty days' written notice delivered or mailed by registered mail, postage prepaid, to the other party, or (b) If (i) the Trustees from time to time. EXHIBIT E LITIGATION 1. The plaintiff named below alleges that the defendants engaged in, or allowed others to engage in, activities that took advantage of the Fund orway mutual fund shares are priced in exchange for investments that benefited the shareholders by the affirmative vote of a majoritymanagers and advisers of the outstanding sharesfunds, but which harmed investors and the funds themselves. The plaintiff's complaint sets forth violations of [SECTION] 36 of the 1940 Act, [SECTION] 206 of the Investment Advisers Act, [SECTION] 10(b) and [SECTION] 20(a) of the 1934 Act, breach of fiduciary duty, and civil conspiracy. The plaintiff seeks declaratory relief, damages, pre and post judgment interest, and attorney's fees and costs. Case Name Defendants Court Date Instituted - ------------------------------------------------------------------------------- Gladys Baker Putnam Management 1 United States April 5, 2004 (derivatively on Omid Kamshad District Court behalf of the Putnam Justin Scott for the District Fund for Putnam Trustees 2 of Delaware Growth and Income, Putnam Funds 3 Putnam Europe (nominal) Equity Fund, and (ii) a majorityPutnam Funds) v. Putnam Investment Management LLC, et al. - ------------------------------------------------------------------------------- 2. The plaintiffs named below allege that the defendants engaged in, permitted, and/or failed to prevent market timing and short-term trading in the Putnam Funds. Plaintiffs generally claim violations of the Trustees[SECTION] 36 of the Fund who are not interested persons of the Fund or of the Manager, by vote cast in person at a meeting called for the purpose of voting on such approval, do not specifically approve at least annually the continuance of this Contract, then this Contract shall automatically terminate at the close of business on //January 31, 1990 or // ((THE SECOND ANNIVERSARY OF ITS EXECUTION, OR UPON)) the expiration of one year from the effective date of the last such continuance, whichever is later. Action by the Fund under (a) above may be taken either (i) by vote of a majority of its Trustees, or (ii) by the affirmative vote of a majority of the outstanding shares of the Fund. Termination of this Contract pursuant to this Section 5 will be without the payment of any penalty. 6. CERTAIN DEFINITIONS. For the purposes of this Contract, the "affirmative vote of a majority of the outstanding shares of the Fund" means the affirmative vote, at a duly called and held meeting of shareholders of the Fund, (a) of the holders of 67% or more of the shares of the Fund present (in person or by proxy) and entitled to vote at such meeting, if the holders of more than 50% of the outstanding shares of the Fund entitled to vote at such meeting are present in person or by proxy, or (b) of the holders of more than 50% of the outstanding shares of the Fund entitled to vote at such meeting, whichever is less. For the purposes of this Contract, the terms "affiliated person", "control", "interested person" and "assignment" shall have their respective meanings defined in the Investment Company Act of 1940, (((THE "1940 ACT")))[SECTION] 206 of the Investment Advisers Act, [SECTION] 10(b) of the Exchange Act and Rule 10b-5, [SECTION] 20(a) of the Exchange Act, breach of fiduciary duty, aiding and abetting breach of fiduciary duty, and civil conspiracy. The plaintiffs generally seek injunctive relief including removal of the current Trustees and fund managers, disgorgement of profits, monetary damages, punitive damages, and attorney's fees and costs. Case Name Defendants Court Date Instituted - ------------------------------------------------------------------------------- Joanne S. Baseman Putnam Management United States Dec. 16, 2003 (derivatively on behalf Omid Kamshad District Court of Putnam International Justin Scott for the District Equity Fund and the Rules and Regulations thereunder, subject, however, to such exemptions as may be granted byWilliam Woolverton of Maryland Putnam Funds) Putnam Trustees v. Putnam Investment Putnam Funds Management, Inc., et al. (nominal) - ------------------------------------------------------------------------------- John K. Clement Putnam Management United States Nov. 26, 2003 (derivatively on behalf Omid Kamshad District Court of several individual Justin Scott for the Securities and Exchange Commission under said Act; the term "specifically approve at least annually" shall be construed in a manner consistent with the //Investment Company Act of// 1940 ((ACT,))District funds and the Rules and Regulations thereunder;William Woolverton of Maryland Putnam Funds) Putnam Trustees v. Putnam Investment Putnam Funds Management Inc., et al. (nominal) - ------------------------------------------------------------------------------- Simon J. Denenberg Putnam Management United States Jan. 30, 2004 (derivatively on behalf Omid Kamshad District Court of the Putnam U.S. Justin Scott for the District Government Income William Woolverton of Maryland Trust and the term "brokeragePutnam Putnam Trustees Funds) v. Putnam Putnam Funds Investment Management, (nominal) Inc., et al. - ------------------------------------------------------------------------------- Diane Hutto and research services" shall havePutnam Management United States Nov. 12, 2003 Dina Rozenbaum Putnam Trustees District Court (derivative on behalf Justin M. Scott for the meaning given in the Securities Exchange ActDistrict of 1934several individual Omid Kamshad of Maryland funds and the RulesPutnam Certain officers of Funds) v. Putnam, LLC, the Putnam Funds and Regulations thereunder. 7. NONLIABILITY OF MANAGER. In the absence of willful misfeasance, bad faith or gross negligence on the part of the Manager, or reckless disregard of its obligations and duties hereunder, the Manager shall not be subject to any liability to the Fund or to any shareholder of the Fund, for any act or omission in the course of, or connected with, rendering services hereunder. 8. TERMINATION OF PRIOR CONTRACT. This Contract shall become effective as of its date, and supersedes theet. al. Putnam Management Contract dated //November 5, 1982// ((DECEMBER 21, 1988)). 9. LIMITATION OF LIABILITY OF THE TRUSTEES ((, OFFICERS)) AND SHAREHOLDERS. A copy of the Agreement and Declaration of Trust of the Fund is on file with the Secretary of ((STATE OF)) The Commonwealth of Massachusetts, and notice is hereby given that this instrument is executedJohn Does 1-100 Putnam Funds (nominal) - ------------------------------------------------------------------------------- Seth B. Marks (derivative Putnam Management United States Dec. 3, 2003 on behalf of several Putnam Trustees District Court individual funds and the TrusteesJustin M. Scott for the District Putnam Funds) Omid Kamshad of Maryland v. Putnam, LLC, et. al. Certain officers of the Putnam Funds and Putnam Management John Does 1-100 Putnam Funds (nominal) - ------------------------------------------------------------------------------- Cynthia Puleo (derivative Putnam Management United States Dec. 16, 2003 on behalf of several Putnam Trustees District Court individual funds and the Justin M. Scott for the District Putnam Funds) Omid Kamshad of Maryland v. Putnam, LLC, et al. Certain officers of the Putnam Funds and Putnam Management John Does 1-100 Putnam Funds (nominal) - ------------------------------------------------------------------------------- Edward L. Segel Putnam Management United States Jan. 23, 2004 (derivative on behalf Putnam Trustees District Court of individual fund Omid Kamshad for the District and the Putnam Funds) Justin Scott of Maryland v. Putnam, LLC, et al. William Woolverton Putnam Funds (nominal) - ------------------------------------------------------------------------------- Zachary Alan Starr Putnam Management United States Nov. 6, 2003 (derivative on behalf Putnam Trustees District Court of Putnam International Omid Kamshad for the District Equity Fund as Trustees and not individually andthe Justin M. Scott of Maryland Putnam Funds) Putnam Funds v. Putnam Investment (nominal) Management, et al. - ------------------------------------------------------------------------------- 3. The plaintiffs named below allege that the obligationsdefendants failed to properly disclose that select customers were allowed to engage in late trading or time their mutual fund trades. The plaintiffs generally claim of ((OR ARISING OUT OF)) this instrument are not binding upon anybreach of fiduciary duty, abuse of control, gross mismanagement, waste of corporate assets, unjust enrichment. The plaintiffs seek damages, equitable and/or injunctive relief, restitution, and attorney's fees and costs. Case Name Defendants Court Date Instituted - ------------------------------------------------------------------------------- Leon Brazin Putnam Trustees Superior Court March 15, 2004 (derivatively on behalf Putnam Management of Suffolk County, of Putnam Vista Fund) Putnam Vista Fund MA; Stipulation v. John A. Hill, et al. (nominal) agreeing to Certain officers of removal and the Putnam Funds and transfer to Putnam Management United States District Court for the District of Maryland executed on April 23, 2004 - ------------------------------------------------------------------------------- Peter Kavaler Putnam Trustees Superior Court March 15, 2004 (derivatively on behalf Putnam Management of Suffolk County, of Putnam Income Putnam Income Fund MA; Stipulation Fund) v. John A. Hill, (nominal) agreeing to et al. Certain officers of removal and the Putnam Funds and transfer to Putnam Management United States District Court for the District of Maryland executed on April 23, 2004 - ------------------------------------------------------------------------------- Todd Klein (derivatively Putnam Trustees United States Jan. 27, 2004 on behalf of Putnam Putnam Management District Court Global Equity Fund) Putnam Global Equity for the District v. Hill, et al. Fund (nominal) of Maryland Certain officers of the Putnam Funds and Putnam Management - ------------------------------------------------------------------------------- Steven Wiegand Putnam Trustees ((, OFFICERS)) or shareholders individually but are binding only uponUnited States Jan. 27, 2004 (derivatively on behalf Putnam Management District Court of Putnam Classic Putnam Classic for the assets and propertyDistrict Equity Fund) Equity Fund of Maryland v. Hill et al. (nominal) Certain officers of the Fund. IN WITNESS WHEREOF, THE GEORGE PUTNAM FUND OF BOSTONPutnam Funds and //THE// PUTNAM ((INVESTMENT)) MANAGEMENT //COMPANY//, INC. have caused this instrumentPutnam Management - ------------------------------------------------------------------------------- 4. The plaintiff named below alleges that defendants failed to be signed in duplicate //in// ((ON)) its behalfprevent the disclosure of confidential information concerning the identity of securities, the practice of late trading by its President selected investors, time-trading by selected investors and insider trading by directors, officers and/or a Vice President thereunto duly authorized, all asemployees of the daydefendants. The plaintiff claims breach of fiduciary duty. Case Name Defendants Court Date Instituted - ------------------------------------------------------------------------------- Stern (derivative on Putnam Funds Supreme Court December 17, 2003 behalf of Marsh & Putnam Management of the State McLennan) v. Greenberg, Jeffrey Greenberg of New York et. al, Mathis Cabaillavetta Marsh Directors 4 Lawrence Lasser - ------------------------------------------------------------------------------- 1 "Putnam Management" includes Putnam Investments Trust, Putnam Investment Management, Putnam Investment Management, LLC, Putnam, LLC, and/or Marsh & McLennan Companies, Inc. 2 The 13 Putnam Trustees include current Trustees Jameson Adkins Baxter, Charles B. Curtis, John A. Hill, Ronald J. Jackson, Paul L. Joskow, Elizabeth T. Kennan, John H. Mullin, III, Robert E. Patterson, George Putnam, III, A.J. Smith and year first above written. THE GEORGE PUTNAM FUND OF BOSTON ///s/David H. Walsh// By: -------------------------------- //Executive Vice President// //THE// PUTNAM ((INVESTMENT)) MANAGEMENT //COMPANY//, INC. ///s/W. Thomas Stephens, and former Trustees W. Nicholas Thorndike and Lawrence J. Lasser // By: -------------------------------- //President// EXHIBIT B MANAGEMENT FEE RATE NAME OF FUND (BASED ON AVERAGE NET ASSETS) (NET ASSETS AS OF MARCH 29, 1996) 0.65%Lasser. 3 "Putnam Funds" includes any and/or all registered investment companies managed by Putnam Management. 4 The Directors of the first $500 million Putnam Balanced RetirementMarsh & McLennan Companies, Inc. are Charles Davis, Lewis Bernard, Peter Coster, Robert Ebruru, Oscar Fanjul, Ray Groves, Stephen Hardis, Gwendolyn King, Lord Lang of average net assets, 0.55% of Fund ($ ) the next $500 million, 0.50% of the next $500 million, 0.45% of any excess over $1.5 billion 0.65% of the first $500 million Putnam Convertible Income-Growth of average net assets, 0.55% Trust ($ ) of the next $500 million, 0.50% of the next $500 million,Monkton, David Olsen, Morton Shapiro, Adele Simmons, and 0.45% of any excess over $1.5 billion 0.75% of the first $100 million Putnam Equity Income Fund of average net assets, 0.65% of ($ ) the next $100 million, 0.55% of the next $300 million, 0.50% of the next $1 billion, 0.45% of the next $1 billion, and 0.40% of any excess over $2.5 billion Proposed to be changed to 0.65% of the first $500 million of average net assets, 0.55% of the next $500 million, 0.50% of the next $500 million, 0.45% of the next $5 billion, 0.425% of the next $5 billion, 0.405% of the next $5 billion, 0.39% of the next $5 billion, and 0.38% thereafter 0.65% of the first $500 millionA.J. Smith. PUTNAM INVESTMENTS The Putnam Fund for Growth of average net assets, 0.55% and Income ($ ) of the next $500 million, 0.50% of the next $500 million, 0.45% Putnam Growth and Income Fund II of the next $5 billion, 0.425% ($ ) of the next $5 billion, 0.405% of the next $5 billion, 0.39% Putnam Investment Funds: of the next $5 billion, and Putnam Balanced Fund 0.38% thereafter ($ ) PUTNAMINVESTMENTS THE PUTNAM FUNDSFunds One Post Office Square Boston, Massachusetts 02109 Toll-free 1-800-225-1581 PUTNAMINVESTMENTS THIS IS YOUR 216581 8/04 PUTNAM INVESTMENTS P.O. BOX 9132 HINGHAM, MA 02043-9132 To vote by Telephone 1) Read the Proxy Statement and have the proxy card at hand. 2) Call 1-888-221-0697. 3) Follow the automated telephone directions. 4) There is no need for you to return your proxy card. To vote by Internet 1) Read the Proxy Statement and have the proxy card at hand. 2) Go to https://www.proxyweb.com/Putnam 3) Follow the instructions on the site. 4) There is no need for you to return your proxy card. To vote by Mail 1) Read the Proxy Statement. 2) Check one of the appropriate boxes on the reverse side. 3) Sign and date the proxy card. 4) Return the proxy card in the envelope provided. This is your PROXY CARD. PLEASE VOTE THIS PROXY, SIGN IT BELOW, AND RETURN IT PROMPTLY IN THE ENVELOPE PROVIDED. YOUR VOTE IS IMPORTANT. Please fold at perforation before detaching - --------------------------------------------------------------------This proxy is solicited on behalf of the Trustees of the Fund. Proxy for a meeting of shareholders Julyto be held on November 11, 1996, for THE GEORGE PUTNAM2004. FUND OF BOSTON. THIS PROXY IS SOLICITED ON BEHALF OF THE TRUSTEES OF THE FUND.NAME PRINTS HERE FUND NAME PRINTS HERE The undersigned shareholder hereby appoints George Putnam, Hans H. Estin,John A. Hill and Robert E. Patterson, and each of them separately, proxies,Proxies, with power of substitution, and hereby authorizes them to represent such shareholder and to vote, as designated below,on the reverse side, at the meeting of shareholders of The George Putnamthe above referenced Fund of Boston on JulyNovember 11, 1996,2004 at 2:11:00 p.m.a.m., Boston time, and at any adjournments thereof, all of the shares of the fund that the undersigned shareholder would be entitled to vote if personally present. The Proxies are authorized to vote in their discretion upon any matters as may properly come before the meeting or at any adjournments of the meeting. If you simply sign the proxy or fail to provide your voting instructions on a proposal, the Proxies will vote in the same manner as the Trustees recommend. PLEASE BE SURE TO SIGN AND DATE THIS PROXY. - ------------------------------------------- Shareholder/Co-owner sign(s) here Date Please sign your name exactly as it appears on this card. If you are a joint owner, each of youowner should sign. When signing as executor, administrator, attorney, trustee, or guardian, or as custodian for a minor, please give your full title as such. If you are signing for a corporation, please sign the full corporate name and indicate the signer's office. If you are a partner, sign in the partnership name. Equity 1 - -------------------------------------------------------------------- Shareholder sign here Date - -------------------------------------------------------------------- Co-owner sign here Date HASdh REFER TO PAGES ______ IN YOUR ADDRESS CHANGED? Please use this form to notify us of any change in address or telephone number or to provide us with your comments. Detach this form from the proxy ballot and return it with your signed proxy in the enclosed envelope. Street - -------------------------------------------------------------------- City State Zip - -------------------------------------------------------------------- Telephone - -------------------------------------------------------------------- DO YOU HAVE ANY COMMENTS? - -------------------------------------------------------------------- - -------------------------------------------------------------------- - -------------------------------------------------------------------- DEAR SHAREHOLDER: Your vote is important. Please help us to eliminate the expense of follow-up mailings by signing and returning this proxy as soon as possible. A postage-paid envelope is enclosed for your convenience. THANK YOU! - -------------------------------------------------------------------- Please fold at perforation before detaching IF YOU COMPLETE AND SIGN THE PROXY WE'LL VOTE IT EXACTLY AS YOU TELL US. IF YOU SIMPLY SIGN THE PROXY, IT WILL BE VOTED FOR ELECTING TRUSTEES AS SET FORTH IN PROPOSAL 1 AND FORSTATEMENT TO DETERMINE WHICH PROPOSALS 2, 3.A.-K. AND 4. IN THEIR DISCRETION, THE PROXIES WILL ALSO BE AUTHORIZEDARE APPLICABLE TO VOTE UPON SUCH OTHER MATTERS THAT MAY COME BEFORE THE MEETING.YOUR FUND(S). THE TRUSTEES RECOMMEND A VOTE FOR ELECTING ALL OF THE NOMINEES FOR TRUSTEES AND FOR THE PROPOSALS LISTED BELOW:PROPOSALS: Please mark your choices /fill in box(es) as shown using black or blue ink or number 2 pencil. X / in blue or black ink.PLEASE DO NOT USE FINE POINT PENS. 1. Proposal to elect Trusteesall nominees. The nominees for Trustees are: (01) J.A. Baxter, H.H. Estin,(02) C.B. Curtis, (03) M.R. Drucker, (04) C.E. Haldeman, Jr., (05) J.A. Hill, (06) R.J. Jackson, (07) P.L. Joskow, (08) E.T. Kennan, L.J. Lasser,(09) J.H. Mullin, III, (10) R.E. Patterson, D.S. Perkins, W.F. Pounds, G. Putnam,(11) G. Putnam, III, E. Shapiro,(12) A.J.C. Smith, W.N. Thorndike. / /(13) W.T. Stephens and (14) R.B. Worley - ------------------------------------------------------------------------ To withhold authority to vote for one or more of the nominees, write the number(s) of the nominee(s) above. FOR electing all the nominees (EXCEPT AS MARKED TO THE CONTRARY BELOW.) TO WITHHOLD AUTHORITY TO VOTE FOR ONE OR MORE OF THE NOMINEES, WRITE THOSE NOMINEES' NAMES BELOW: ------------------------------------------------------------- / /(except as marked to the contrary at left) WITHHOLD authority to vote for all nominees 2. PROPOSAL TO RATIFY2A. Approving an amendment to the fund's fundamental investment restriction with respect to borrowing. FOR AGAINST ABSTAIN THE SELECTION OF / / / / / / PRICE WATERHOUSE LLP AS INDEPENDENT AUDITORS. 3.A. PROPOSAL TO AMEND THE2B. Approving an amendment to the fund's fundamental investment restriction with respect to making loans. FOR AGAINST ABSTAIN FUND'S AGREEMENT AND / / / / / / DECLARATION OF TRUST WITH RESPECT TO DIVERSIFICATION OF INVESTMENTS. 3.B. PROPOSAL TO AMEND THE2C. Approving an amendment to the fund's fundamental investment restriction with respect to diversification of investments. FOR AGAINST ABSTAIN FUND'S AGREEMENT AND / / / / / / DECLARATION OF TRUST WITH RESPECT TO INVESTMENTS IN ISSUERS THAT HAVE BEEN IN OPERATION FOR LESS THAN THREE YEARS. 3.C. PROPOSAL TO AMEND THE2D. Approving an amendment to the fund's fundamental investment restriction with respect to issuance of senior securities. FOR AGAINST ABSTAIN FUND'S AGREEMENT AND / / / / / / DECLARATION OF TRUST WITH RESPECT TO THE PURCHASE OF CERTAIN ILLIQUID SECURITIES. 3.D. PROPOSAL TO AMEND THE2E. Approving an amendment to Putnam Equity Income Fund's investment objective. FOR AGAINST ABSTAIN FUND'S AGREEMENT AND / / / / / / DECLARATION OF TRUST WITH RESPECT TO INVESTMENTS IN SECURITIES OF ISSUERS IN WHICH MANAGEMENT OF THE FUND OR PUTNAM MANAGEMENT OWNS SECURITIES. 3.E. PROPOSAL TO AMEND THE3. Approving an amendment to the fund's Agreement and Declaration of Trust. FOR AGAINST ABSTAIN FUND'S AGREEMENT AND / / / / / / DECLARATION OF TRUST WITH RESPECT TO OWNING 10% OF THE SECURITIES OF A SINGLE ISSUER. 3.F. PROPOSAL TO AMEND THE FOR AGAINST ABSTAIN FUND'S FUNDAMENTAL / / / / / / INVESTMENT RESTRICTIONS RELATING TO INVESTMENTS IN REAL ESTATE. 3.G. PROPOSAL TO AMEND THE FOR AGAINST ABSTAIN FUND'S AGREEMENT AND / / / / / / DECLARATION OF TRUST WITH RESPECT TO MARGIN TRANSACTIONS. 3.H. PROPOSAL TO ELIMINATE FOR AGAINST ABSTAIN THE FUND'S FUNDAMENTAL / / / / / / INVESTMENT RESTRICTIONS WITH RESPECT TO SHORT SALES. 3.I. PROPOSAL TO AMEND THE FOR AGAINST ABSTAIN FUND'S FUNDAMENTAL / / / / / / INVESTMENT RESTRICTION WITH RESPECT TO MAKING LOANS BY PURCHASING SECURITIES. 3.J. PROPOSAL TO AMEND THE FOR AGAINST ABSTAIN FUND'S AGREEMENT AND / / / / / / DECLARATION OF TRUST WITH RESPECT TO MAKING LOANS THROUGH REPURCHASE AGREEMENTS AND SECURITIES LOANS. 3.K. PROPOSAL TO ELIMINATE FOR AGAINST ABSTAIN THE FUND'S FUNDAMENTAL / / / / / / INVESTMENT RESTRICTION PROHIBITING THE FUND FROM INVESTING IN INVESTMENT COMPANIES IF PROHIBITED BY GERMAN LAW. 4. PROPOSAL TO APPROVE FOR AGAINST ABSTAIN A NEW MANAGEMENT / / / / / / CONTRACT INCREASING THE FEES PAYABLE TO PUTNAM INVESTMENT MANAGEMENT, INC. NOTE:Note: If you have any questions on any of the proposals, please call 1-800-225-1581. PLEASE SIGN AND DATE ON THE REVERSE SIDE. Equity 1- dh PUTNAM INVESTMENTS EzVote Consolidated Proxy Card The top half of this form is your EzVote Consolidated Proxy. It reflects all of your accounts registered to the same Social Security or Tax I.D. number at this address. By voting and signing the Consolidated Proxy Card, you are voting all of these accounts in the same manner as indicated on the reverse side of the form. PROXY FOR THE SPECIAL MEETING OF SHAREHOLDERS TO BE HELD NOVEMBER 11, 2004 This Proxy is solicited on behalf of the Trustees of the Fund. The undersigned shareholder hereby appoints John A. Hill and Robert E. Patterson, and each of them separately, Proxies, with power of substitution, and hereby authorizes them to represent such shareholder and to vote, as designated on the reverse side, at the meeting of shareholders of the open-end Putnam funds noted thereon on November 11, 2004 at 11:00 a.m., Boston time, and at any adjournments thereof, all of the shares of the fund that the undersigned shareholder would be entitled to vote if personally present. The Proxies are authorized to vote in their discretion upon any matters as may properly come before the meeting or at any adjournments of the meeting. If you simply sign the proxy or fail to provide your voting instructions on a proposal, the Proxies will vote in the same manner as the Trustees recommend PLEASE BE SURE TO SIGN AND DATE THIS PROXY. - ------------------------------------------- Shareholder/Co-owner sign(s) here Date Please sign your name exactly as it appears on this card. If you are a joint owner, each owner should sign. When signing as executor, administrator, attorney, trustee, or guardian, or as custodian for a minor, please give your full title as such. If you are signing for a corporation, please sign the full corporate name and indicate the signer's office. If you are a partner, sign in the partnership name. Equity 1 EZ - dh DETACH CONSOLIDATED PROXY CARD AT PERFORATION BELOW Your vote is important. For your convenience, you can vote your Proxy in any of these three ways: 1 TELEPHONE Call us toll-free at 1-888-221-0697 * Follow the automated telephone direction. * There is no need for you to return your proxy card. 2 INTERNET Go to https://www.proxyweb.com/Putnam * Follow the instructions on the site. * There is no need for you to return your proxy card. 3 MAIL Mail in the proxy card. * Please sign and date your proxy card. * Detach the card from this proxy form. * Return the card in the postage-paid envelope provided. INDIVIDUAL BALLOTS On the reverse side of this form (and on accompanying pages, if necessary) you will find individual ballots, one for each of your accounts. If you would wish to vote each of these accounts separately, sign in the signature box below, mark each individual ballot to indicate your vote, detach the form at the perforation above and return the individual ballots portion only. NOTE: If you elect to vote each account separately, do not return the Consolidated Proxy Card above. SIGN BELOW ONLY IF YOU ARE VOTING EACH ACCOUNT SEPARATELY. - ------------------------------------------- Shareholder/Co-owner sign(s) here Date Please sign your name exactly as it appears on this card. If you are a joint owner, each owner should sign. When signing as executor, administrator, attorney, trustee, or guardian, or as custodian for a minor, please give your full title as such. If you are signing for a corporation, please sign the full corporate name and indicate the signer's office. If you are a partner, sign in the partnership name. Equity 1 IND - dh REFER TO PAGES ______ IN YOUR PROXY STATEMENT TO DETERMINE WHICH PROPOSALS ARE APPLICABLE TO YOUR FUND(S). EzVote Consolidated Proxy Card THE TRUSTEES RECOMMEND A VOTE FOR ALL PROPOSALS: Please fill in box(es) as shown using black or blue ink or number 2 pencil. X PLEASE DO NOT USE FINE POINT PENS. 1. Proposal to elect all nominees. The nominees for Trustees are: (01) J.A. Baxter, (02) C.B. Curtis, (03) M.R. Drucker, (04) C.E. Haldeman, Jr., (05) J.A. Hill, (06) R.J. Jackson, (07) P.L. Joskow, (08) E.T. Kennan, (09) J.H. Mullin, III, (10) R.E. Patterson, (11) G. Putnam, III, (12) A.J.C. Smith, (13) W.T. Stephens and (14) R.B. Worley To withhold authority to vote for one or more of the nominees, write the number(s) of the nominee(s) above. FOR electing all the nominees (except as marked to the contrary at left) WITHHOLD authority to vote for all nominees 2A. Approving an amendment to the fund's fundamental investment restriction with respect to borrowing. FOR AGAINST ABSTAIN 2B. Approving an amendment to the fund's fundamental investment restriction with respect to making loans. FOR AGAINST ABSTAIN 2C. Approving an amendment to the fund's fundamental investment restriction with respect to diversification of investments. FOR AGAINST ABSTAIN 2D. Approving an amendment to the fund's fundamental investment restriction with respect to issuance of senior securities. FOR AGAINST ABSTAIN 2E. Approving an amendment to Putnam Equity Income Fund's investment objective. FOR AGAINST ABSTAIN 3. Approving an amendment to the fund's Agreement and Declaration of Trust. FOR AGAINST ABSTAIN Note: If you have any questions on the proposals, please call 1-800-225-1581. PLEASE SIGN AND DATE ON THE REVERSE SIDE. Equity 1 EZ - dh DETACH CONSOLIDATED PROXY CARD AT PERFORATION BELOW