SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(a)
OF THE SECURITIES EXCHANGE ACT OF 1934
Filed by the Registrant / X /
Filed by a party other than the Registrant / /
Check the appropriate box:
/ X / Preliminary Proxy Statement
/ / Confidential, for Use of the Commission Only (as permitted by Rule
14a-6(e) (2))
/ / Definitive Proxy Statement
/ / Definitive Additional Materials
/ / Soliciting Material Pursuant to Sec. 240.14a-11(c) or Sec. 240.14a-12
PUTNAM AMERICAN GOVERNMENT INCOME FUND
PUTNAM ARIZONA TAX EXEMPT INCOME FUND
PUTNAM CALIFORNIA TAX EXEMPT INCOME FUND
PUTNAM DIVERSIFIED INCOME TRUST
PUTNAM FLORIDA TAX EXEMPT INCOME FUND
PUTNAM FUNDS TRUST
PUTNAM GLOBAL INCOME TRUST
PUTNAM HIGH YIELD ADVANTAGE FUND
PUTNAM HIGH YIELD TRUST
PUTNAM INCOME FUND
PUTNAM INTERMEDIATE U.S. GOVERNMENT INCOME FUND
PUTNAM MASSACHUSETTS TAX EXEMPT INCOME FUND
PUTNAM MICHIGAN TAX EXEMPT INCOME FUND
PUTNAM MINNESOTA TAX EXEMPT INCOME FUND
PUTNAM MONEY MARKET FUND
PUTNAM MUNICIPAL INCOME FUND
PUTNAM NEW JERSEY TAX EXEMPT INCOME FUND
PUTNAM NEW YORK TAX EXEMPT INCOME FUND
PUTNAM OHIO TAX EXEMPT INCOME FUND
PUTNAM PENNSYLVANIA TAX EXEMPT INCOME FUND
PUTNAM TAX EXEMPT INCOME FUND
PUTNAM TAX EXEMPT MONEY MARKET FUND
PUTNAM TAX-FREE INCOME TRUST
PUTNAM U.S. GOVERNMENT INCOME TRUST
(Name of Registrant as Specified In Its Charter)
(Name of Person(s) Filing Proxy Statement,
if other than Registrant)
Payment of Filing Fee (Check the appropriate box):
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(1) Title of each class of securities to which transaction applies:
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registration statement number, or the Form or Schedule and the date of
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Important information for shareholders of
THE PUTNAM FUNDS
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 7 and 8.
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 OMITTED]
Table of contents
A Message from the Chairman 1
Notice of Shareholder Meeting 2
Trustees' Recommendations 7
PROXY CARD ENCLOSED
If you have any questions, please contact us at 1-800-225-1581 or call
your financial advisor.
[GRAPHIC OMITTED: PHOTO OF JOHN A. HILL]
A Message from the Chairman
Dear Shareholder:
I am writing to you to ask for your vote on important matters that
affect your investment in 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 cards, by calling or
by voting via the Internet. We are asking for your vote on the following
matters:
(1) Electing Trustees;
(2) Approving a number of changes to various funds' fundamental
investment restrictions, including the
elimination of certain of these restrictions; and
(3) Approving an amendment to various funds' Agreements and Declarations
of Trust.
Please see page 5 for list of the affected funds.
Although we would like very much to have each shareholder attend this
meeting, we realize that it may not be possible. Whether or not you plan
to be present, we need your vote. We urge you to record your voting
instructions by telephone, via the Internet or by completing, signing,
and returning the enclosed proxy card promptly. A postage-paid envelope
is 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 do
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 I
am sure you will give these important matters. If you have questions
about the proposals, please call a Putnam customer service
representative at 1-800-225-1581 or contact your financial advisor.
Sincerely yours,
/S/ John A. Hill
John A. Hill, Chairman
Notice of a Meeting of Shareholders
To the Shareholders of:
PUTNAM AMERICAN GOVERNMENT INCOME FUND
PUTNAM ARIZONA TAX EXEMPT INCOME FUND
PUTNAM CALIFORNIA TAX EXEMPT INCOME FUND
PUTNAM DIVERSIFIED INCOME TRUST
PUTNAM FLORIDA TAX EXEMPT INCOME FUND
PUTNAM FLOATING RATE INCOME FUND
PUTNAM GLOBAL INCOME TRUST
PUTNAM HIGH YIELD ADVANTAGE FUND
PUTNAM HIGH YIELD TRUST
PUTNAM INCOME FUND
PUTNAM INTERMEDIATE U.S. GOVERNMENT INCOME FUND
PUTNAM MASSACHUSETTS TAX EXEMPT INCOME FUND
PUTNAM MICHIGAN TAX EXEMPT INCOME FUND
PUTNAM MINNESOTA TAX EXEMPT INCOME FUND
PUTNAM MONEY MARKET FUND
PUTNAM MUNICIPAL INCOME FUND
PUTNAM NEW JERSEY TAX EXEMPT INCOME FUND
PUTNAM NEW YORK TAX EXEMPT INCOME FUND
PUTNAM OHIO TAX EXEMPT INCOME FUND
PUTNAM PENNSYLVANIA TAX EXEMPT INCOME FUND
PUTNAM PRIME MONEY MARKET FUND
PUTNAM TAX EXEMPT INCOME FUND
PUTNAM TAX EXEMPT MONEY MARKET FUND
PUTNAM TAX-FREE INSURED FUND
PUTNAM TAX-FREE HIGH YIELD FUND
PUTNAM U.S. GOVERNMENT INCOME TRUST
* 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 American Government Income Fund, Putnam
Arizona Tax Exempt Income Fund, Putnam California Tax Exempt Income Fund,
Putnam Diversified Income Trust, Putnam Florida Tax Exempt Income Fund,
Putnam Floating Rate Income Fund, Putnam Global Income Trust, Putnam High
Yield Advantage Fund, Putnam High Yield Trust, Putnam Income Fund, Putnam
Intermediate U.S. Government Income Fund, Putnam Massachusetts Tax Exempt
Income Fund, Putnam Michigan Tax Exempt Income Fund, Putnam Minnesota Tax
Exempt Income Fund, Putnam Money Market Fund, Putnam Municipal Income Fund,
Putnam New Jersey Tax Exempt Income Fund, Putnam New York Tax Exempt Income
Fund, Putnam Ohio Tax Exempt Income Fund, Putnam Pennsylvania Tax Exempt
Income Fund, Putnam Prime Money Market Fund, Putnam Tax Exempt Income Fund,
Putnam Tax Exempt Money Market Fund, Putnam Tax-Free Insured Fund, Putnam
Tax-Free High Yield Fund, and Putnam U.S. Government Income Trust
A Meeting of Shareholders of your fund will be held on November 11, 2004
at 11:00 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 your fund's Trustees;
2.A. Approving an amendment to certain funds' fundamental investment
restrictions with respect to borrowing;
2.B. Approving an amendment to certain funds' fundamental investment
restrictions with respect to making loans;
2.C. Approving an amendment to certain funds' fundamental investment
restrictions with respect to diversification of investments;
2.D. Approving an amendment to a fund's fundamental investment
restriction with respect to issuance of senior securities;
2.E. Approving the elimination of a fund's fundamental investment
restrictions with respect to purchasing or selling options, puts, calls,
straddles and spreads;
2.F. Approving an amendment to a fund's fundamental investment
restriction with respect to investments in commodities;
3. Approving an amendment to certain funds' Agreements and Declarations of Trust
By the Trustees
John A. Hill, Chairman
George Putnam, III, President
Jameson A. Baxter
Charles B. Curtis
Ronald J. Jackson
Paul L. Joskow
Elizabeth T. Kennan
John H. Mullin, III
Robert E. Patterson
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 Arizona Tax Exempt Income Fund Putnam Minnesota Tax Exempt Income Fund
to a fund's fundamental Putnam Convertible Income-Growth Trust Putnam Money Market Fund
investment restriction Putnam Diversified Income Trust Putnam Municipal Income Fund
with respect to borrowing Putnam Florida Tax Exempt Income Fund Putnam New Jersey Tax Exempt Income Fund
Putnam Global Income Fund Putnam Ohio Tax Exempt Income Fund
Putnam High Yield Trust Putnam Pennsylvania Tax Exempt Income Fund
Putnam Income Fund Putnam Tax Exempt Income Fund
Putnam Intermediate U.S. Government Putnam Tax Exempt Money Market Fund
Income Fund Putnam Tax-Free High Yield Fund
Putnam Michigan Tax Exempt Income Fund Putnam Tax-Free Insured Fund
- ----------------------------------------------------------------------------------------------------------------------------
2.B. Approving an amendment Putnam Diversified Income Trust Putnam Municipal Income Fund
to a fund's fundamental Putnam Florida Tax Exempt Income Fund Putnam New Jersey Tax Exempt Income Fund
investment restriction with Putnam Global Income Fund Putnam Ohio Tax Exempt Income Fund
respect to making loans Putnam High Yield Trust Income Fund
Putnam Income Fund Putnam Pennsylvania Tax Exempt
Putnam Intermediate U.S. Government Putnam Tax Exempt Income Fund
Income Fund Putnam Tax Exempt Money Market Fund
Putnam Michigan Tax Exempt Income Fund Putnam Tax-Free High Yield Fund
Putnam Minnesota Tax Exempt Income Fund Putnam Tax-Free Insured Fund
Putnam Money Market Fund
- ----------------------------------------------------------------------------------------------------------------------------
2.C. Approving an amendment All funds, except Putnam Floating Rate Income Fund
to a fund's fundamental
investment restriction
with respect to
diversification
of investments
- ----------------------------------------------------------------------------------------------------------------------------
2.D. Approving an amendment to a Putnam New York Tax Exempt Income Fund
fund's fundamental investment
restriction with respect to
issuance of senior securities
- ----------------------------------------------------------------------------------------------------------------------------
2.E. Approving the elimination of Putnam U.S. Government Income Trust
the fund's fundamental
investment restriction with
respect to purchasing or
selling options, puts, calls,
straddles and spreads
- ----------------------------------------------------------------------------------------------------------------------------
2.F. Approving an amendment to Putnam U.S. Government Income Trust
a fund's fundamental investment
restriction with respect to
investments in commodities
- ----------------------------------------------------------------------------------------------------------------------------
3 Approval of an amendment to All funds
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
toll-free number, 1-800-225-1581, or 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 each fund to be held on November
11, 2004, and, if your fund's meeting is adjourned, at any later
meetings, for the purposes stated in the Notice of Meeting (see previous
pages). 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. Electing your fund's nominees for Trustee;
2.A. For approving an amendment to certain funds' fundamental investment
restrictions with respect to borrowing;
2.B. For approving an amendment to certain funds' fundamental investment
restrictions with respect to making loans;
2.C. For approving an amendment to certain funds' fundamental investment
restrictions with respect to diversification of investments;
2.D.For approving an amendment to a fund's fundamental investment
restrictions with respect to issuance of senior securities;
2.E. For approving the elimination of a fund's fundamental investment
restrictions with respect to purchasing or selling options, puts, calls,
straddles and spreads;
2.F. For approving an amendment to a fund's fundamental
investment restriction with respect to investments in commodities;
3. For approving an amendment to certain funds' Agreements and Declarations
of Trust
Please see the descriptions of the proposals beginning on page 45 for lists
of the affected funds.
* Who is eligible to vote?
Shareholders of record of each affected fund at the close of business on
August 13, 2004 are entitled to be present and to vote at the meeting or
any adjourned meeting.
Each share is entitled to one vote. Shares represented by your duly
executed proxy will be voted in accordance with 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 your fund's meeting, your shares will be voted at the
Trustees' discretion.
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 of each fund
makes recommendations concerning the Trustees of that fund. The Board
Policy and Nominating Committee consists solely of Trustees who are not
"interested persons" (as defined in the Investment Company Act of 1940,
as amended (the "1940 Act") of your fund or of Putnam Investment
Management, 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 5 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 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 A. BAXTER]
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Ms. Baxter is the President of Baxter Associates, Inc., a private
investment firm that she founded in 1986.
Ms. Baxter serves as a Director of ASHTA Chemicals, Inc., Banta
Corporation (a printing and digital 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 Board of Trustees, Mount Holyoke College, having served
as Chairman for five years and as a 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, including Vice President and Principal of the Regency
Group, and Vice President of and Consultant to First Boston Corporation.
She is a graduate of Mount Holyoke College.
Charles B. Curtis (4/27/40)
Trustee since 2001
[GRAPHIC OMITTED PHOTO OF CHARLES B. CURTIS]
- -------------------------------------------
Mr. 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 member of the Council on Foreign Relations and the
Trustee 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 the
Federal Energy Regulatory Commission from 1977 to 1981 and has held
positions on the staff of the U.S. House of Representatives, the U.S.
Treasury Department, and the SEC.
Myra R. Drucker (1/16/48),
Nominee for Trustee
- -------------------------------------------
[GRAPHIC OMITTED PHOTO OF MYRA R. DRUCKER]
Ms. Drucker is Vice Chair of the Board of Trustees of Sarah 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 also 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 executive positions in the investment management industry.
Ms. Drucker served as Chief Investment Officer of Xerox 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 B.A. degree
in Literature and Psychology from Sarah Lawrence College and pursued
graduate studies in economics, statistics and portfolio theory at Temple
University.
John A. Hill (1/31/42)
Trustee since 1985 and Chairman since 2000
[GRAPHIC OMITTED PHOTO OF JOHN A. HILL]
- --------------------------------------
Mr. Hill is Vice Chairman of First Reserve Corporation, a private equity
buyout firm that specializes in energy investments in the diversified
worldwide energy industry.
Mr. Hill is a Director of 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 firms and with the federal government, including Deputy
Associate Director of the Office of Management and Budget, and Deputy
Director of the Federal Energy Administration. He is 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 private investor.
Mr. Jackson is President of the Kathleen and Ronald J. Jackson
Foundation (a charitable trust). He is also a member of the Board of
Overseers of WGBH (a public television and radio station) as well as a
member of the Board of Overseers of the Peabody Essex Museum.
Mr. Jackson is the former Chairman, President, and Chief Executive
Officer of 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 University of Michigan 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 Center 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 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 active 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 National Trust for Historic
Preservation, of Centre College and of 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 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. Mullin 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 Washington & Lee University and The Wharton Graduate
School, University of Pennsylvania.
Robert E. Patterson (3/15/45)
Trustee since 1984
[GRAPHIC OMITTED PHOTO OF ROBERT E. PATTERSON]
- ---------------------------------------------
Mr. Patterson is Senior Partner of Cabot Properties, L.P. and Chairman
of Cabot Properties, Inc.
Mr. Patterson 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.
W. Thomas Stephens (9/2/42)
Trustee since 1997
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Mr. Stephens 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
University of Arkansas.
Richard B. Worley (11/15/45),
Nominee for Trustee
- -------------------------------------------
[GRAPHIC OMITTED PHOTO OF RICHARD B. WORLEY]
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Mr. Worley is Managing Partner of Permit Capital LLC, an investment
management firm.
Mr. Worley serves as a director of [ ]. Mr. Worley is
also on the Executive Committee of the University of Pennsylvania Medial
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]
- ----------------------------------------------
Mr. Haldeman is President and Chief Executive Officer of Putnam
Investments. He is a member of Putnam Investments' Executive Board of
Directors and Advisory Counsel.
[Insert any outside board service.]
Prior to joining Putnam Investments in 2002, Mr. Haldeman held executive
positions in the investment management 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 Cooke & Bieler, Inc. (an
investment management firm). Mr. Haldeman is a graduate of Dartmouth
College, Harvard Law School and Harvard Business School. Mr. Haldeman
is also a Chartered Financial Analyst (CFA) charterholder.
George Putnam III* (8/10/51)
Trustee since 1984 and President since 2000
[GRAPHIC OMITTED PHOTO OF GEORGE PUTNAM III]
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Mr. Putnam is President of New Generation Research, Inc. (a publisher of
financial advisory and other research services), and of New Generation
Advisers, Inc. (a registered investment advisor to private funds). Mr.
Putnam founded the New Generation companies in 1986.
Mr. Putnam is a Director of The Boston Family Office, LLC (a registered
investment advisor). He is a Trustee of St. Mark's School, Shore Country
Day School, and until 2002 was a Trustee of the Sea Education
Association.
Mr. Putnam previously worked as an attorney with the law firm of Dechert
LLP (formerly known as Dechert Price & Rhoads) in Philadelphia. He is a
graduate of Harvard College, Harvard Business School, and Harvard Law School.
A.J.C. Smith* (4/13/34)
Trustee since 1986
[GRAPHIC OMITTED PHOTO OF A.J.C. SMITH]
- ---------------------------------------
Mr. Smith is the Chairman of Putnam Investments and Director of and
Consultant to Marsh & McLennan Companies, Inc.
Mr. Smith is also a Director of Trident Corp. (a limited partnership
with over thirty institutional investors). He is also 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 and a Member of the Board of Overseers of the Joan and
Sanford I. Weill Graduate School of Medical Sciences of Cornell
University. Prior to May 2000 and November 1999, Mr. Smith was Chairman
and CEO, respectively, of Marsh & McLennan Companies, Inc.
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* Nominees who are or may be deemed to be "interested persons" (as
defined in the 1940 Act) of a fund, Putnam Management, Putnam Retail
Management Limited Partnership ("Putnam Retail Management"), or Marsh &
McLennan Companies, Inc., the parent company of Putnam Investments and
its affiliated companies. Messrs. Haldeman, Putnam, and Smith are deemed
"interested persons" by virtue of their positions as officers or
shareholders of each fund, Putnam Management, Putnam Retail Management,
or Marsh & McLennan Companies, Inc. Mr. Haldeman is President and Chief
Executive Officer of Putnam Investments. Mr. Putnam III is the President
of each of the funds. Mr. Smith is the Chairman of Putnam Investments
and serves as a Director of and Consultant to Marsh & McLennan
Companies, Inc.
Ms. Drucker was nominated by [ ]. Mr. Worley was nominated by [ ].
Mr. Haldeman was nominated by [ ].
The 14 nominees for election as Trustees 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 fix the number
of Trustees at fewer than 14 for your fund.
* What are the trustees' responsibilities?
Your fund's Trustees are responsible for the general oversight of your
fund's affairs and for assuring that your fund is managed in the best
interests of its shareholders. The Trustees regularly 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, and
shareholder servicing. At least annually, the Trustees review and
evaluate the fees and operating expenses paid by your fund for these
services and 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 other 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 and 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 appointed 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 Dr. Joskow (Chairperson), Dr. 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 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 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 each Trustee should have a significant investment
in the Putnam funds. The Trustees allocate their investments among the
Putnam funds based on their own investment needs. The table below shows
the number of shares beneficially owned by each current Trustee and
nominee and the value of each Trustee's and each nominee's holdings in
each fund and in all of the Putnam funds as of June 30, 2004.
Shares Shares Shares
Dollar Range of Beneficially Dollar Range of Beneficially Dollar Range of Beneficially
Shares Owned Owned Shares Owned Owned Shares Owned Owned
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Putnam American Putnam Arizona Putnam California Tax
Trustees/Nominees Government Fund Tax Exempt Fund Exempt Income Fund
- --------------------------------------------------------------------------------------------------------------------------------
Jameson A. Baxter $1-$10,000 373.242 $1-$10,000 160.524 $1-$10,000 203.235
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Charles B. Curtis $1-$10,000 113.500 $1-$10,000 114.751 $1-$10,000 117.463
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Myra R. Drucker
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Charles E. Haldeman, Jr.
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John A. Hill Over $100,000 18791.199 $1-$10,000 193.019 $1-$10,000 161.657
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Ronald J. Jackson $1-$10,000 329.254 $1-$10,000 248.778 $1-$10,000 276.811
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Paul L. Joskow $10,001-$50,000 1310.637 $1-$10,000 143.201 $1-$10,000 157.272
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Elizabeth T. Kennan $1-$10,000 558.324 $1-$10,000 100.358 $1-$10,000 115.775
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John H. Mullin, III $1-$10,000 770.452 $1-$10,000 118.362 $1-$10,000 119.839
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Robert E. Patterson $10,001-$50,000 1900.014 $1-$10,000 100.096 $1-$10,000 100.195
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George Putnam, III $10,001-$50,000 2837.858 $1-$10,000 201.326 $1-$10,000 724.708
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A.J.C. Smith $10,001-$50,000 1259.162 $1-$10,000 202.244 $1-$10,000 476.329
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W. Thomas Stephens $1-$10,000 294.155 $1-$10,000 136.749 $1-$10,000 142.080
- --------------------------------------------------------------------------------------------------------------------------------
Richard B. Worley
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Shares Shares
Dollar Range of Beneficially Dollar Range of Beneficially
Shares Owned Owned Shares Owned Owned
- ----------------------------------------------------------------------------------------------
Putnam Diversified Putnam Florida Tax
Trustees/Nominees Income Trust Exempt Income Fund
- ----------------------------------------------------------------------------------------------
Jameson A. Baxter $1-$10,001 791.219 $1-$10,000 161.246
- ----------------------------------------------------------------------------------------------
Charles B. Curtis $1-$10,001 211.494 $1-$10,000 115.225
- ----------------------------------------------------------------------------------------------
Myra R. Drucker
- ----------------------------------------------------------------------------------------------
Charles E.
Haldeman, Jr. $10,001-$50,000 1203.586
- ----------------------------------------------------------------------------------------------
John A. Hill $10,001-$50,000 1665.185 $1-$10,000 201.341
- ----------------------------------------------------------------------------------------------
Ronald J. Jackson $1-$10,001 523.382 $1-$10,000 247.657
- ----------------------------------------------------------------------------------------------
Paul L. Joskow $1-$10,001 330.273 $1-$10,000 141.414
- ----------------------------------------------------------------------------------------------
Elizabeth T. Kennan $1-$10,001 639.284 $1-$10,000 100.079
- ----------------------------------------------------------------------------------------------
John H. Mullin, III $10,001-$50,000 1346.013 $1-$10,000 122.188
- ----------------------------------------------------------------------------------------------
Robert E. Patterson $10,001-$50,000 1197.025 $1-$10,000 100.090
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George Putnam, III $10,001-$50,000 4632.543 $1-$10,000 204.739
- ----------------------------------------------------------------------------------------------
A.J.C. Smith $1-$10,001 2627.354 $1-$10,000 206.050
- ----------------------------------------------------------------------------------------------
W. Thomas Stephens $1-$10,001 297.886 $1-$10,000 137.037
- ----------------------------------------------------------------------------------------------
Richard B. Worley
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Shares Shares Shares
Dollar Range of Beneficially Dollar Range of Beneficially Dollar Range of Beneficially
Shares Owned Owned Shares Owned Owned Shares Owned Owned
- --------------------------------------------------------------------------------------------------------------------------------
Putnam Floating Putnam Global Putnam High
Trustees/Nominees Rate Income Fund Income Trust Yield Trust
- --------------------------------------------------------------------------------------------------------------------------------
Jameson A. Baxter $1-$10,001 142.684 $50,001-$100,000 15,251.711
- --------------------------------------------------------------------------------------------------------------------------------
Charles B. Curtis $1-$10,001 120.043 $1-$10,000 248.824
- --------------------------------------------------------------------------------------------------------------------------------
Myra R. Drucker
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Charles E. Haldeman, Jr.
- --------------------------------------------------------------------------------------------------------------------------------
John A. Hill $1-$10,001 138.200 $10,001-$50,000 2440.486
- --------------------------------------------------------------------------------------------------------------------------------
Ronald J. Jackson $1-$10,001 180.157 $1-$10,000 802.868
- --------------------------------------------------------------------------------------------------------------------------------
Paul L. Joskow $1-$10,001 280.928 Over $100,000 12459.724
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Elizabeth T. Kennan $1-$10,001 313.191 $10,001-$50,000 1515.797
- --------------------------------------------------------------------------------------------------------------------------------
John H. Mullin, III $1-$10,001 326.906 $10,001-$50,000 5431.667
- --------------------------------------------------------------------------------------------------------------------------------
Robert E. Patterson $1-$10,001 724.444 Over $100,000 216655.635
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George Putnam, III $10,001-$50,000 3460.453 Over $100,000 38572.725
- --------------------------------------------------------------------------------------------------------------------------------
A.J.C. Smith $1-$10,001 323.096 $1-$10,000 629.581
- --------------------------------------------------------------------------------------------------------------------------------
W. Thomas Stephens $1-$10,001 150.603 $1-$10,000 338.825
- --------------------------------------------------------------------------------------------------------------------------------
Richard B. Worley
- --------------------------------------------------------------------------------------------------------------------------------
Shares Shares Shares
Dollar Range of Beneficially Dollar Range of Beneficially Dollar Range of Beneficially
Shares Owned Owned Shares Owned Owned Shares Owned Owned
- --------------------------------------------------------------------------------------------------------------------------------
Putnam High Putnam Putnam Intermediate
Trustees/Nominees Yield Advantage Fund Income Fund U.S. Government Income Fund
- --------------------------------------------------------------------------------------------------------------------------------
Jameson A. Baxter $1-$10,000 2185.672 $10,001-$50,000 3825.371 $1-$10,000 818.531
- --------------------------------------------------------------------------------------------------------------------------------
Charles B. Curtis $1-$10,000 135.973 $1-$10,000 116.635 $1-$10,000 114.138
- --------------------------------------------------------------------------------------------------------------------------------
Myra R. Drucker
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Charles E. Haldeman, Jr. $10,001-$50,000 2119.508
- --------------------------------------------------------------------------------------------------------------------------------
John A. Hill $1-$10,000 372.876 Over $100,000 29995.745 $1-$10,000 1441.013
- --------------------------------------------------------------------------------------------------------------------------------
Ronald J. Jackson $1-$10,000 240.308 $1-$10,000 564.555 $1-$10,000 286.321
- --------------------------------------------------------------------------------------------------------------------------------
Paul L. Joskow $10,001-$50,000 2556.215 $1-$10,000 198.721 $1-$10,000 266.184
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Elizabeth T. Kennan $1-$10,000 432.732 $1-$10,000 336.428 $1-$10,000 710.252
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John H. Mullin, III $1-$10,000 998.807 $1-$10,000 1011.953 $1-$10,000 1357.628
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Robert E. Patterson Over $100,000 34381.276 $1-$10,000 1405.85 $1-$10,000 804.650
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George Putnam, III $10,001-$50,000 5917.460 $10,001-$50,000 5708.48 Over $100,000 46171.316
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A.J.C. Smith $1-$10,000 628.332 $1-$10,000 324.951 $1-$10,000 628.641
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W. Thomas Stephens $1-$10,000 199.963 $1-$10,000 146.938 $1-$10,000 136.053
- --------------------------------------------------------------------------------------------------------------------------------
Richard B. Worley
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Shares Shares Shares
Dollar Range of Beneficially Dollar Range of Beneficially Dollar Range of Beneficially
Shares Owned Owned Shares Owned Owned Shares Owned Owned
- --------------------------------------------------------------------------------------------------------------------------------
Putnam Massachusetts Putnam Michigan Putnam Minnesota
Trustees/Nominees Tax Exempt Income Fund Tax Exempt Income Fund Tax Exempt Income Fund
- --------------------------------------------------------------------------------------------------------------------------------
Jameson A. Baxter $1-$10,000 165.891 $1-$10,000 163.483 $1-$10,000 161.749
- --------------------------------------------------------------------------------------------------------------------------------
Charles B. Curtis $1-$10,000 114.740 $1-$10,000 116.614 $1-$10,000 114.917
- --------------------------------------------------------------------------------------------------------------------------------
Myra R. Drucker
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Charles E. Haldeman, Jr.
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John A. Hill $1-$10,000 152.543 $1-$10,000 148.802 $1-$10,000 198.479
- --------------------------------------------------------------------------------------------------------------------------------
Ronald J. Jackson $10,001-$50,000 1137.880 $1-$10,000 251.828 $1-$10,000 251.977
- --------------------------------------------------------------------------------------------------------------------------------
Paul L. Joskow Over $100,000 11293.791 $1-$10,000 145.993 $1-$10,000 146.816
- --------------------------------------------------------------------------------------------------------------------------------
Elizabeth T. Kennan $1-$10,000 100.000 $1-$10,000 100.000 $1-$10,000 100.001
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John H. Mullin, III $1-$10,000 118.123 $1-$10,000 120.629 $1-$10,000 122.116
- --------------------------------------------------------------------------------------------------------------------------------
Robert E. Patterson $1-$10,000 100.000 $1-$10,000 100.000 $1-$10,000 100.023
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George Putnam, III $10,001-$50,000 5162.366 $1-$10,000 954.215 $1-$10,000 905.960
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A.J.C. Smith $1-$10,000 551.599 $1-$10,000 545.699 $1-$10,000 524.339
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W. Thomas Stephens $1-$10,000 138.770 $1-$10,000 138.393 $1-$10,000 137.357
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Richard B. Worley
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Shares Shares
Dollar Range of Beneficially Dollar Range of Beneficially
Shares Owned Owned Shares Owned Owned
- ----------------------------------------------------------------------------------------------------------
Putnam Money Putnam Municipal
Trustees/Nominees Market Fund Income Fund
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Jameson A. Baxter $50,001-$100,000 54,491.25 $1-$10,000 676.438
- ----------------------------------------------------------------------------------------------------------
Charles B. Curtis Over $100,000 212358.93 $1-$10,000 116.979
- ----------------------------------------------------------------------------------------------------------
Myra R. Drucker
- ----------------------------------------------------------------------------------------------------------
Charles E. Haldeman, Jr. $1-$10,000 2127.980
- ----------------------------------------------------------------------------------------------------------
John A. Hill Over $100,000 811273.270 $1-$10,000 239.628
- ----------------------------------------------------------------------------------------------------------
Ronald J. Jackson $1-$10,000 125.626 $1-$10,000 264.706
- ----------------------------------------------------------------------------------------------------------
Paul L. Joskow Over $100,000 160928.960 $1-$10,000 149.414
- ----------------------------------------------------------------------------------------------------------
Elizabeth T. Kennan $1-$10,000 125.626 $1-$10,000 100.224
- ----------------------------------------------------------------------------------------------------------
John H. Mullin, III Over $100,000 2074611.130 $1-$10,000 124.607
- ----------------------------------------------------------------------------------------------------------
Robert E. Patterson Over $100,000 126710.520 $1-$10,000 100.171
- ----------------------------------------------------------------------------------------------------------
George Putnam, III Over $100,000 183030.300 $10,001-$50,000 2320.476
- ----------------------------------------------------------------------------------------------------------
A.J.C. Smith $10,001-$50,000 27072.070 $1-$10,000 250.530
- ----------------------------------------------------------------------------------------------------------
W. Thomas Stephens $1-$10,000 125.626 $1-$10,000 142.912
- ----------------------------------------------------------------------------------------------------------
Richard B. Worley
- ----------------------------------------------------------------------------------------------------------
Shares Shares
Dollar Range of Beneficially Dollar Range of Beneficially
Shares Owned Owned Shares Owned Owned
- ---------------------------------------------------------------------------------------------------------
Putnam New Jersey Tax Putnam New York Tax
Trustees/Nominees Exempt Income Fund Exempt Income Fund
- ---------------------------------------------------------------------------------------------------------
Jameson A. Baxter $1-$10,000 166.331 $1-$10,000 493.188
- ---------------------------------------------------------------------------------------------------------
Charles B. Curtis $1-$10,000 114.705 $1-$10,000 233.061
- ---------------------------------------------------------------------------------------------------------
Myra R. Drucker
- ---------------------------------------------------------------------------------------------------------
Charles E. Haldeman, Jr.
- ---------------------------------------------------------------------------------------------------------
John A. Hill $1-$10,000 206.217 $10,001-$50,000 4576.070
- ---------------------------------------------------------------------------------------------------------
Ronald J. Jackson $1-$10,000 251.225 $1-$10,000 529.950
- ---------------------------------------------------------------------------------------------------------
Paul L. Joskow $1-$10,000 143.690 $1-$10,000 303.954
- ---------------------------------------------------------------------------------------------------------
Elizabeth T. Kennan $1-$10,000 100.060 $1-$10,000 214.638
- ---------------------------------------------------------------------------------------------------------
John H. Mullin, III $1-$10,000 118.725 $1-$10,000 241.729
- ---------------------------------------------------------------------------------------------------------
Robert E. Patterson $1-$10,000 100.070 $1-$10,000 100.171
- ---------------------------------------------------------------------------------------------------------
George Putnam, III $1-$10,000 205.904 $1-$10,000 810.480
- ---------------------------------------------------------------------------------------------------------
A.J.C. Smith $1-$10,000 220.473 Over $100,000 46884.001
- ---------------------------------------------------------------------------------------------------------
W. Thomas Stephens $1-$10,000 136.830 $1-$10,000 141.918
- ---------------------------------------------------------------------------------------------------------
Richard B. Worley
- ---------------------------------------------------------------------------------------------------------
Shares Shares Shares
Dollar Range of Beneficially Dollar Range of Beneficially Dollar Range of Beneficially
Shares Owned Owned Shares Owned Owned Shares Owned Owned
- --------------------------------------------------------------------------------------------------------------------------------
Putnam Ohio Tax Putnam Pennsylvania Putnam Prime
Trustees/Nominees Exempt Income Fund Tax Exempt Income Fund Money Market Fund
- --------------------------------------------------------------------------------------------------------------------------------
Jameson A. Baxter $1-$10,000 162.330 $1-$10,001 114.879
- --------------------------------------------------------------------------------------------------------------------------------
Charles B. Curtis $1-$10,000 113.516 $1-$10,001 211.449
- --------------------------------------------------------------------------------------------------------------------------------
Myra R. Drucker
- --------------------------------------------------------------------------------------------------------------------------------
Charles E. Haldeman, Jr.
- --------------------------------------------------------------------------------------------------------------------------------
John A. Hill $1-$10,000 213.657 $1-$10,001 100.150
- --------------------------------------------------------------------------------------------------------------------------------
Ronald J. Jackson $1-$10,000 252.102 $1-$10,001 100.147
- --------------------------------------------------------------------------------------------------------------------------------
Paul L. Joskow $1-$10,000 146.353 $1-$10,001 738.282
- --------------------------------------------------------------------------------------------------------------------------------
Elizabeth T. Kennan $1-$10,000 100.001 $1-$10,001 237.249
- --------------------------------------------------------------------------------------------------------------------------------
John H. Mullin, III $1-$10,000 120.706 $1-$10,001 168.993
- --------------------------------------------------------------------------------------------------------------------------------
Robert E. Patterson $1-$10,000 100.000 $1-$10,001 252.470
- --------------------------------------------------------------------------------------------------------------------------------
George Putnam, III $1-$10,000 645.051 $1-$10,001 148.132
- --------------------------------------------------------------------------------------------------------------------------------
A.J.C. Smith $1-$10,000 541.007 $1-$10,001 141.431
- --------------------------------------------------------------------------------------------------------------------------------
W. Thomas Stephens $1-$10,000 137.658 $1-$10,001 119.071
- --------------------------------------------------------------------------------------------------------------------------------
Richard B. Worley
- --------------------------------------------------------------------------------------------------------------------------------
Shares Shares Shares
Dollar Range of Beneficially Dollar Range of Beneficially Dollar Range of Beneficially
Shares Owned Owned Shares Owned Owned Shares Owned Owned
- --------------------------------------------------------------------------------------------------------------------------------
Putnam Tax Putnam Tax Exempt Putnam Tax-Free
Trustees/Nominees Exempt Income Fund Money Market Fund High Yield Fund
- --------------------------------------------------------------------------------------------------------------------------------
Jameson A. Baxter $1-$10,000 658.704 $1-$10,001 6806.670 $1-$10,000 535.414
- --------------------------------------------------------------------------------------------------------------------------------
Charles B. Curtis $1-$10,000 116.319 $1-$10,001 1530.810 $1-$10,000 119.212
- --------------------------------------------------------------------------------------------------------------------------------
Myra R. Drucker
- --------------------------------------------------------------------------------------------------------------------------------
Charles E. Haldeman, Jr.
- --------------------------------------------------------------------------------------------------------------------------------
John A. Hill $1-$10,000 525.038 Over $100,000 10797890.460 $1-$10,000 193.549
- --------------------------------------------------------------------------------------------------------------------------------
Ronald J. Jackson $1-$10,000 443.536 $1-$10,001 7795.350 $1-$10,000 724.196
- --------------------------------------------------------------------------------------------------------------------------------
Paul L. Joskow $1-$10,000 151.028 $1-$10,001 3161.000 $1-$10,000 146.145
- --------------------------------------------------------------------------------------------------------------------------------
Elizabeth T. Kennan $1-$10,000 115.143 $1-$10,001 150.720 $1-$10,000 100.000
- --------------------------------------------------------------------------------------------------------------------------------
John H. Mullin, III $1-$10,000 120.775 $1-$10,001 3104.280 $1-$10,000 123.547
- --------------------------------------------------------------------------------------------------------------------------------
Robert E. Patterson $1-$10,000 183.514 $1-$10,001 100.000 $1-$10,000 100.044
- --------------------------------------------------------------------------------------------------------------------------------
George Putnam, III $10,001-$50,000 1593.643 $1-$10,001 1044.740 $10,001-$50,000 815.756
- --------------------------------------------------------------------------------------------------------------------------------
A.J.C. Smith $10,001-$50,000 4600.831 Over $100,000 2813076.630 $1-$10,000 258.073
- --------------------------------------------------------------------------------------------------------------------------------
W. Thomas Stephens $1-$10,000 141.789 Over $100,000 989693.400 $1-$10,000 147.574
- --------------------------------------------------------------------------------------------------------------------------------
Richard B. Worley
- --------------------------------------------------------------------------------------------------------------------------------
Shares Shares
Dollar Range of Beneficially Dollar Range of Beneficially
Shares Owned Owned Shares Owned Owned
- ---------------------------------------------------------------------------------------------
Putnam Tax-Free Putnam U.S.
Trustees/Nominees Insured Fund Government Income Trust
- ---------------------------------------------------------------------------------------------
Jameson A. Baxter $1-$10,000 174.619 $1-$10,000 179.554
- ---------------------------------------------------------------------------------------------
Charles B. Curtis $1-$10,000 117.555 $1-$10,000 111.481
- ---------------------------------------------------------------------------------------------
Myra R. Drucker
- ---------------------------------------------------------------------------------------------
Charles E. Haldeman, Jr.
- ---------------------------------------------------------------------------------------------
John A. Hill $1-$10,000 167.833 $1-$10,000 663.482
- ---------------------------------------------------------------------------------------------
Ronald J. Jackson $10,001-$50,000 829.309 $1-$10,000 179.874
- ---------------------------------------------------------------------------------------------
Paul L. Joskow $1-$10,000 134.559 $1-$10,000 157.863
- ---------------------------------------------------------------------------------------------
Elizabeth T. Kennan $1-$10,000 100.000 $1-$10,000 315.373
- ---------------------------------------------------------------------------------------------
John H. Mullin, III $1-$10,000 120.272 $1-$10,000 536.266
- ---------------------------------------------------------------------------------------------
Robert E. Patterson $1-$10,000 100.028 $10,001-$50,000 1297.252
- ---------------------------------------------------------------------------------------------
George Putnam, III $1-$10,000 660.158 $10,001-$50,000 2596.558
- ---------------------------------------------------------------------------------------------
A.J.C. Smith $1-$10,000 234.784 $10,001-$50,000 930.992
- ---------------------------------------------------------------------------------------------
W. Thomas Stephens $1-$10,000 141.724 $1-$10,000 142.111
- ---------------------------------------------------------------------------------------------
Richard B. Worley
- ---------------------------------------------------------------------------------------------
Shares
Dollar Range of Beneficially Dollar Range of
Shares Owned Owned Shares Owned
- ----------------------------------------------------------------------------------
Putnam Utilities
Trustees/Nominees Growth and Income Fund All Funds
- ----------------------------------------------------------------------------------
Jameson A. Baxter $1-$10,000 618.997 Over $100,000
- ----------------------------------------------------------------------------------
Charles B. Curtis $1-$10,000 112.628 Over $100,000
- ----------------------------------------------------------------------------------
Myra R. Drucker
- ----------------------------------------------------------------------------------
Charles E. Haldeman, Jr. Over $100,000
- ----------------------------------------------------------------------------------
John A. Hill $10,001-$50,000 1497.565 Over $100,000
- ----------------------------------------------------------------------------------
Ronald J. Jackson $1-$10,000 816.839 Over $100,000
- ----------------------------------------------------------------------------------
Paul L. Joskow $1-$10,000 175.299 Over $100,000
- ----------------------------------------------------------------------------------
Elizabeth T. Kennan $1-$10,000 110.835 Over $100,000
- ----------------------------------------------------------------------------------
John H. Mullin, III $10,001-$50,000 1232.216 Over $100,000
- ----------------------------------------------------------------------------------
Robert E. Patterson $1-$10,000 685.142 Over $100,000
- ----------------------------------------------------------------------------------
George Putnam, III $10,001-$50,000 2076.560 Over $100,000
- ----------------------------------------------------------------------------------
A.J.C. Smith $1-$10,000 248.838 Over $100,000
- ----------------------------------------------------------------------------------
W. Thomas Stephens $1-$10,000 162.025 Over $100,000
- ----------------------------------------------------------------------------------
Richard B. Worley
- ----------------------------------------------------------------------------------
At (June 30, 2004) the Trustees and Officers of each fund owned less
than 1% of the outstanding shares of each class of each fund on that date.
* What are some of the ways in which the 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 investment team;
* by 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 conducting an in-depth review of the fees paid by 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 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 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 each Putnam fund. A portion of these meetings is
devoted to meetings of various committees of the board which focus on
particular matters. Each Trustee generally attends at least two formal
committee meetings during each regular meeting of the Trustees. During
2003, the average Trustee participated in approximately 49 committee and
board meetings. In addition, the Trustees meet in small groups with
Chief Investment Officers, Portfolio Leaders and Portfolio Members 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, including the Executive
Committee, may also meet on special occasions as the need arises. 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 does 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 ensure 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 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 American Putnam Arizona Tax
Trustees Government Income Fund Exempt Income Fund
- ----------------------------------------------------------------------------------------------------
Jameson A. Baxter/1994(5) $2,445 $696 $703 $190
- ----------------------------------------------------------------------------------------------------
Charles B. Curtis/2001 2,398 573 689 137
- ----------------------------------------------------------------------------------------------------
John A. Hill/1985(5)(7) 4,121 820 1,149 231
- ----------------------------------------------------------------------------------------------------
Ronald J. Jackson/1996(5) 2,399 644 687 178
- ----------------------------------------------------------------------------------------------------
Paul L. Joskow/1997(5) 2,422 515 696 165
- ----------------------------------------------------------------------------------------------------
Elizabeth T. Kennan/1992 2,410 845 703 237
- ----------------------------------------------------------------------------------------------------
John H. Mullin, III/1997(5) 2,427 789 698 251
- ----------------------------------------------------------------------------------------------------
Robert E. Patterson/1984 2,427 460 698 128
- ----------------------------------------------------------------------------------------------------
George Putnam, III/1984(7) 2,998 378 863 106
- ----------------------------------------------------------------------------------------------------
A.J.C. Smith/1986(6) 0 875 0 244
- ----------------------------------------------------------------------------------------------------
W. Thomas Stephens/1997(5) 2,383 720 690 232
- ----------------------------------------------------------------------------------------------------
Retirement
benefits
Aggregate accrued as
Compensation part of fund
from the fund expenses
- -------------------------------------------------------------------
Putnam California Tax
Trustees Exempt Income Fund
- -------------------------------------------------------------------
Jameson A. Baxter/1994(5) $3,738 $1,065
- -------------------------------------------------------------------
Charles B. Curtis/2001 3,666 876
- -------------------------------------------------------------------
John A. Hill/1985(5)(7) 6,301 1,254
- -------------------------------------------------------------------
Ronald J. Jackson/1996(5) 3,667 985
- -------------------------------------------------------------------
Paul L. Joskow/1997(5) 3,703 787
- -------------------------------------------------------------------
Elizabeth T. Kennan/1992 3,684 1,292
- -------------------------------------------------------------------
John H. Mullin, III/1997(5) 3,711 1,207
- -------------------------------------------------------------------
Robert E. Patterson/1984 3,711 703
- -------------------------------------------------------------------
George Putnam, III/1984(7) 4,583 578
- -------------------------------------------------------------------
A.J.C. Smith/1986(6) NA 1,338
- -------------------------------------------------------------------
W. Thomas Stephens/1997(5) 3,643 1,102
- -------------------------------------------------------------------
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 Diversified Putnam Florida Tax
Trustees Income Trust Exempt Income Fund
- ----------------------------------------------------------------------------------------------------
Jameson A. Baxter/1994(5) $4,421 $1,287 $740 $200
- ----------------------------------------------------------------------------------------------------
Charles B. Curtis/2001 4,337 1,048 724 144
- ----------------------------------------------------------------------------------------------------
John A. Hill/1985(5)(7) 7,449 1,519 1,208 243
- ----------------------------------------------------------------------------------------------------
Ronald J. Jackson/1996(5) 4,338 1,191 723 187
- ----------------------------------------------------------------------------------------------------
Paul L. Joskow/1997(5) 4,380 965 732 174
- ----------------------------------------------------------------------------------------------------
Elizabeth T. Kennan/1992 4,355 1,565 739 249
- ----------------------------------------------------------------------------------------------------
John H. Mullin, III/1997(5) 4,389 1,478 734 264
- ----------------------------------------------------------------------------------------------------
Robert E. Patterson/1984 4,389 851 734 135
- ----------------------------------------------------------------------------------------------------
George Putnam, III/1984(7) 5,420 700 907 112
- ----------------------------------------------------------------------------------------------------
A.J.C. Smith/1986(6) NA 1,620 0 258
- ----------------------------------------------------------------------------------------------------
W. Thomas Stephens/1997(5) 4,308 1,351 725 244
- ----------------------------------------------------------------------------------------------------
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 Floating Rate Putnam Global
Trustees Income Fund* Income Trust
- ----------------------------------------------------------------------------------------------------
Jameson A. Baxter/1994(5) $970 $284
- ----------------------------------------------------------------------------------------------------
Charles B. Curtis/2001 959 240
- ----------------------------------------------------------------------------------------------------
John A. Hill/1985(5)(7) 1,633 333
- ----------------------------------------------------------------------------------------------------
Ronald J. Jackson/1996(5) 973 262
- ----------------------------------------------------------------------------------------------------
Paul L. Joskow/1997(5) 959 202
- ----------------------------------------------------------------------------------------------------
Elizabeth T. Kennan/1992 952 343
- ----------------------------------------------------------------------------------------------------
John H. Mullin, III/1997(5) 963 310
- ----------------------------------------------------------------------------------------------------
Robert E. Patterson/1984 964 187
- ----------------------------------------------------------------------------------------------------
George Putnam, III/1984(7) 1,195 153
- ----------------------------------------------------------------------------------------------------
A.J.C. Smith/1986(6) 0 356
- ----------------------------------------------------------------------------------------------------
W. Thomas Stephens/1997(5) 950 282
- ----------------------------------------------------------------------------------------------------
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 High Putnam High Yield
Trustees Yield Trust Advantage Fund
- ----------------------------------------------------------------------------------------------------
Jameson A. Baxter/1994(5) $4,072 $1,193 $2,327 $694
- ----------------------------------------------------------------------------------------------------
Charles B. Curtis/2001 3,999 937 2,302 601
- ----------------------------------------------------------------------------------------------------
John A. Hill/1985(5)(7) 6,869 1,420 3,919 807
- ----------------------------------------------------------------------------------------------------
Ronald J. Jackson/1996(5) 4,007 1,109 2,336 639
- ----------------------------------------------------------------------------------------------------
Paul L. Joskow/1997(5) 4,039 939 2,302 474
- ----------------------------------------------------------------------------------------------------
Elizabeth T. Kennan/1992 4,016 1,462 2,285 833
- ----------------------------------------------------------------------------------------------------
John H. Mullin, III/1997(5) 4,047 1,433 2,310 731
- ----------------------------------------------------------------------------------------------------
Robert E. Patterson/1984 4,046 794 2,313 455
- ----------------------------------------------------------------------------------------------------
George Putnam, III/1984(7) 4,999 655 2,867 372
- ----------------------------------------------------------------------------------------------------
A.J.C. Smith/1986(6) 0 1,512 0 862
- ----------------------------------------------------------------------------------------------------
W. Thomas Stephens/1997(5) 3,973 1,315 2,279 664
- ----------------------------------------------------------------------------------------------------
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 Putnam Intermediate U.S.
Trustees Income Fund Government Income Fund
- ----------------------------------------------------------------------------------------------------
Jameson A. Baxter/1994(5) $4,100 $1,187 $2,270 $291
- ----------------------------------------------------------------------------------------------------
Charles B. Curtis/2001 4,055 1,008 2,245 156
- ----------------------------------------------------------------------------------------------------
John A. Hill/1985(5)(7) 6,904 1,388 3,822 376
- ----------------------------------------------------------------------------------------------------
Ronald J. Jackson/1996(5) 4,115 1,095 2,278 277
- ----------------------------------------------------------------------------------------------------
Paul L. Joskow/1997(5) 4,057 838 2,246 308
- ----------------------------------------------------------------------------------------------------
Elizabeth T. Kennan/1992 4,026 1,431 2,229 379
- ----------------------------------------------------------------------------------------------------
John H. Mullin, III/1997(5) 4,070 1,289 2,254 461
- ----------------------------------------------------------------------------------------------------
Robert E. Patterson/1984 4,075 781 2,256 202
- ----------------------------------------------------------------------------------------------------
George Putnam, III/1984(7) 5,052 640 2,797 172
- ----------------------------------------------------------------------------------------------------
A.J.C. Smith/1986(6) 0 1,482 0 388
- ----------------------------------------------------------------------------------------------------
W. Thomas Stephens/1997(5) 4,015 1,173 2,223 431
- ----------------------------------------------------------------------------------------------------
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 Massachusetts Putnam Michigan Tax
Trustees Tax Exempt Income Fund Exempt Income Fund
- ----------------------------------------------------------------------------------------------------
Jameson A. Baxter/1994(5) $797 $214 $716 $193
- ----------------------------------------------------------------------------------------------------
Charles B. Curtis/2001 781 154 701 139
- ----------------------------------------------------------------------------------------------------
John A. Hill/1985(5)(7) 1,302 259 1,169 234
- ----------------------------------------------------------------------------------------------------
Ronald J. Jackson/1996(5) 779 200 699 181
- ----------------------------------------------------------------------------------------------------
Paul L. Joskow/1997(5) 789 186 708 168
- ----------------------------------------------------------------------------------------------------
Elizabeth T. Kennan/1992 797 266 715 241
- ----------------------------------------------------------------------------------------------------
John H. Mullin, III/1997(5) 790 282 710 255
- ----------------------------------------------------------------------------------------------------
Robert E. Patterson/1984 790 144 710 130
- ----------------------------------------------------------------------------------------------------
George Putnam, III/1984(7) 978 120 878 108
- ----------------------------------------------------------------------------------------------------
A.J.C. Smith/1986(6) 0 276 0 249
- ----------------------------------------------------------------------------------------------------
W. Thomas Stephens/1997(5) 781 260 702 235
- ----------------------------------------------------------------------------------------------------
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 Minnesota Tax Putnam Money Putnam Municipal
Trustees Exempt Income Fund Market Fund Income Fund
- --------------------------------------------------------------------------------------------------------------------------
Jameson A. Baxter/1994(5) $706 $192 $5,069 $1,424 $1,982 $541
- --------------------------------------------------------------------------------------------------------------------------
Charles B. Curtis/2001 692 138 4,972 1,176 1,895 359
- --------------------------------------------------------------------------------------------------------------------------
John A. Hill/1985(5)(7) 1,153 233 8,544 1,676 3,344 668
- --------------------------------------------------------------------------------------------------------------------------
Ronald J. Jackson/1996(5) 690 180 4,974 1,317 1,901 511
- --------------------------------------------------------------------------------------------------------------------------
Paul L. Joskow/1997(5) 699 167 5,022 1,048 1,888 512
- --------------------------------------------------------------------------------------------------------------------------
Elizabeth T. Kennan/1992 706 239 4,997 1,727 1,898 684
- --------------------------------------------------------------------------------------------------------------------------
John H. Mullin, III/1997(5) 700 254 5,032 1,606 1,930 773
- --------------------------------------------------------------------------------------------------------------------------
Robert E. Patterson/1984 700 129 5,032 941 1,939 368
- --------------------------------------------------------------------------------------------------------------------------
George Putnam, III/1984(7) 866 107 6,217 773 2,364 308
- --------------------------------------------------------------------------------------------------------------------------
A.J.C. Smith/1986(6) 0 247 0 1,789 NA 706
- --------------------------------------------------------------------------------------------------------------------------
W. Thomas Stephens/1997(5) 692 234 4,940 1,467 1,878 717
- --------------------------------------------------------------------------------------------------------------------------
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 Jersey Tax Putnam New York Tax
Trustees Exempt Income Fund Exempt Income Fund
- ----------------------------------------------------------------------------------------------------
Jameson A. Baxter/1994(5) $755 $203 $2,185 $660
- ----------------------------------------------------------------------------------------------------
Charles B. Curtis/2001 740 147 2,161 573
- ----------------------------------------------------------------------------------------------------
John A. Hill/1985(5)(7) 1,234 246 3,679 768
- ----------------------------------------------------------------------------------------------------
Ronald J. Jackson/1996(5) 738 190 2,193 607
- ----------------------------------------------------------------------------------------------------
Paul L. Joskow/1997(5) 747 176 2,162 450
- ----------------------------------------------------------------------------------------------------
Elizabeth T. Kennan/1992 755 253 2,145 792
- ----------------------------------------------------------------------------------------------------
John H. Mullin, III/1997(5) 749 267 2,169 694
- ----------------------------------------------------------------------------------------------------
Robert E. Patterson/1984 749 136 2,172 433
- ----------------------------------------------------------------------------------------------------
George Putnam, III/1984(7) 926 113 2,692 354
- ----------------------------------------------------------------------------------------------------
A.J.C. Smith/1986(6) 0 261 0 820
- ----------------------------------------------------------------------------------------------------
W. Thomas Stephens/1997(5) 740 247 2,140 630
- ----------------------------------------------------------------------------------------------------
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 Ohio Tax Putnam Pennsylvania Tax
Trustees Exempt Income Fund Exempt Income Fund
- ----------------------------------------------------------------------------------------------------
Jameson A. Baxter/1994(5) $716 $196 $761 $198
- ----------------------------------------------------------------------------------------------------
Charles B. Curtis/2001 702 141 746 143
- ----------------------------------------------------------------------------------------------------
John A. Hill/1985(5)(7) 1,177 237 1,227 241
- ----------------------------------------------------------------------------------------------------
Ronald J. Jackson/1996(5) 700 183 744 186
- ----------------------------------------------------------------------------------------------------
Paul L. Joskow/1997(5) 709 170 753 173
- ----------------------------------------------------------------------------------------------------
Elizabeth T. Kennan/1992 716 244 760 247
- ----------------------------------------------------------------------------------------------------
John H. Mullin, III/1997(5) 711 258 755 262
- ----------------------------------------------------------------------------------------------------
Robert E. Patterson/1984 711 132 755 134
- ----------------------------------------------------------------------------------------------------
George Putnam, III/1984(7) 881 109 928 111
- ----------------------------------------------------------------------------------------------------
A.J.C. Smith/1986(6) 0 251 0 255
- ----------------------------------------------------------------------------------------------------
W. Thomas Stephens/1997(5) 702 238 746 242
- ----------------------------------------------------------------------------------------------------
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 Prime Putnam Tax Exempt
Trustees Money* Market Fund Income Fund
- ----------------------------------------------------------------------------------------------------
Jameson A. Baxter/1994(5) $2,298 $655
- ----------------------------------------------------------------------------------------------------
Charles B. Curtis/2001 2,254 539
- ----------------------------------------------------------------------------------------------------
John A. Hill/1985(5)(7) 3,873 771
- ----------------------------------------------------------------------------------------------------
Ronald J. Jackson/1996(5) 2,254 606
- ----------------------------------------------------------------------------------------------------
Paul L. Joskow/1997(5) 2,276 484
- ----------------------------------------------------------------------------------------------------
Elizabeth T. Kennan/1992 2,265 795
- ----------------------------------------------------------------------------------------------------
John H. Mullin, III/1997(5) 2,281 742
- ----------------------------------------------------------------------------------------------------
Robert E. Patterson/1984 2,281 433
- ----------------------------------------------------------------------------------------------------
George Putnam, III/1984(7) 2,817 356
- ----------------------------------------------------------------------------------------------------
A.J.C. Smith/1986(6) 0 824
- ----------------------------------------------------------------------------------------------------
W. Thomas Stephens/1997(5) 2,239 678
- ----------------------------------------------------------------------------------------------------
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 Tax Exempt Putnam Tax-Free
Trustees Money Market Fund High Yield Fund
- ----------------------------------------------------------------------------------------------------
Jameson A. Baxter/1994(5) $642 $184 $2,238 $618
- ----------------------------------------------------------------------------------------------------
Charles B. Curtis/2001 629 151 2,195 478
- ----------------------------------------------------------------------------------------------------
John A. Hill/1985(5)(7) 1,081 217 3,774 738
- ----------------------------------------------------------------------------------------------------
Ronald J. Jackson/1996(5) 629 170 2,195 575
- ----------------------------------------------------------------------------------------------------
Paul L. Joskow/1997(5) 635 136 2,217 496
- ----------------------------------------------------------------------------------------------------
Elizabeth T. Kennan/1992 632 223 2,206 759
- ----------------------------------------------------------------------------------------------------
John H. Mullin, III/1997(5) 637 209 2,222 756
- ----------------------------------------------------------------------------------------------------
Robert E. Patterson/1984 637 122 2,222 412
- ----------------------------------------------------------------------------------------------------
George Putnam, III/1984(7) 787 100 2,745 340
- ----------------------------------------------------------------------------------------------------
A.J.C. Smith/1986(6) 0 230 NA 785
- ----------------------------------------------------------------------------------------------------
W. Thomas Stephens/1997(5) 625 191 2,182 695
- ----------------------------------------------------------------------------------------------------
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 Tax-Free Putnam U.S. Government
Trustees Insured Fund Income Trust
- -------------------------------------------------------------------------------------------------
Jameson A. Baxter/1994(5) $1,171 $318 $3,982 $1,129
- -------------------------------------------------------------------------------------------------
Charles B. Curtis/2001 1,148 247 3,905 931
- -------------------------------------------------------------------------------------------------
John A. Hill/1985(5)(7) 1,973 380 6,712 1,328
- -------------------------------------------------------------------------------------------------
Ronald J. Jackson/1996(5) 1,148 296 3,907 1,044
- -------------------------------------------------------------------------------------------------
Paul L. Joskow/1997(5) 1,160 255 3,945 831
- -------------------------------------------------------------------------------------------------
Elizabeth T. Kennan/1992 1,154 391 3,925 1,369
- -------------------------------------------------------------------------------------------------
John H. Mullin, III/1997(5) 1,162 389 3,953 1,275
- -------------------------------------------------------------------------------------------------
Robert E. Patterson/1984 1,162 212 3,953 745
- -------------------------------------------------------------------------------------------------
George Putnam, III/1984(7) 1,435 175 4,883 612
- -------------------------------------------------------------------------------------------------
A.J.C. Smith/1986(6) NA 404 NA 1,417
- -------------------------------------------------------------------------------------------------
W. Thomas Stephens/1997(5) 1,141 357 3,881 1,164
- -------------------------------------------------------------------------------------------------
(1) Includes an annual retainer and an attendance fee for each meeting
attended.
(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 effect
during calendar 2003.
(3) As of December 31, 2003, there were 101 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. As of the dates indicated below, the total amounts of
deferred compensation payable by the fund, including income earned on
such amounts, were as follows:
Putnam Putnam Putnam
American Arizona Tax CA Tax Putnam
Government Exempt Exempt Diversified
Income Fund Income Fund Income Fund Income Trust
(Sept. 30, (May 31, (Sept. 30, (Sept. 30,
2003) 2003) 2003) 2003)
- --------------------------------------------------------------------------------------------
Baxter $6,694 $399 $10,836 $15,789
- --------------------------------------------------------------------------------------------
Hill 18,495 1,058 29,937 43,623
- --------------------------------------------------------------------------------------------
Jackson 9,425 534 15,256 22,230
- --------------------------------------------------------------------------------------------
Joskow 7,067 407 11,440 16,669
- --------------------------------------------------------------------------------------------
Mullin 7,657 458 12,395 18,061
- --------------------------------------------------------------------------------------------
Stephens 3,007 179 4,867 7,092
- --------------------------------------------------------------------------------------------
Putnam Putnam
Florida Floating Putnam Putnam High Yield
Tax Exempt Rate Global High Yield Advantage
Income Fund Income Fund Income Trust Trust Fund
(May 31, (June 30, (Oct. 31, (Aug. 31, (Nov. 30,
2003) 2003) 2003) 2003) 2003)
- ------------------------------------------------------------------------------------------------------------
Baxter $422 N/A $3,216 $15,066 $9,716
- ------------------------------------------------------------------------------------------------------------
Hill 1,118 N/A 9,234 41,629 27,896
- ------------------------------------------------------------------------------------------------------------
Jackson 564 N/A 4,741 21,204 14,317
- ------------------------------------------------------------------------------------------------------------
Joskow 430 N/A 3,498 15,891 10,571
- ------------------------------------------------------------------------------------------------------------
Mullin 484 N/A 3,677 17,242 11,107
- ------------------------------------------------------------------------------------------------------------
Stephens 189 N/A 1,444 6,757 4,360
- ------------------------------------------------------------------------------------------------------------
Putnam Putnam Putnam
Intermediate US Mass. Michigan Putnam Putnam
Putnam Government Tax Exempt Tax Exempt Money Municipal
Income Income Income Income Market Income
Fund Fund Fund Fund Fund Fund
(Oct. 31, (Nov. 30, (May 31, (May 31, (Sept. 30, (March 31,
2003) 2003) 2003) 2003) 2003) 2003)
- ---------------------------------------------------------------------------------------------------------------------
Baxter $10,527 $1,415 $451 $407 $9,528 $4,707
- ---------------------------------------------------------------------------------------------------------------------
Hill 30,226 4,062 1,196 1,078 26,324 11,945
- ---------------------------------------------------------------------------------------------------------------------
Jackson 15,520 2,085 604 544 13,415 5,978
- ---------------------------------------------------------------------------------------------------------------------
Joskow 11,450 1,539 460 414 10,059 4,625
- ---------------------------------------------------------------------------------------------------------------------
Mullin 12,037 1,617 517 466 10,899 5,397
- ---------------------------------------------------------------------------------------------------------------------
Stephens 4,727 635 202 182 4,280 2,112
- ---------------------------------------------------------------------------------------------------------------------
Putnam Putnam Putnam Putnam Putnam
NJ Tax NY Tax Ohio Tax Penn. Tax Prime
Exempt Exempt Exempt Exempt Money
Income Fund Income Fund Income Fund Income Fund Market Fund
(May 31, (Nov. 30, (May 31, (May 31, (Sept. 30,
2003) 2003) 2003) 2003) 2003)
- ------------------------------------------------------------------------------------------------------------
Baxter $427 $7,600 $413 $419 N/A
- ------------------------------------------------------------------------------------------------------------
Hill 1,130 21,820 1,094 1,110 N/A
- ------------------------------------------------------------------------------------------------------------
Jackson 570 11,199 552 560 N/A
- ------------------------------------------------------------------------------------------------------------
Joskow 434 8,269 420 427 N/A
- ------------------------------------------------------------------------------------------------------------
Mullin 489 8,688 473 480 N/A
- ------------------------------------------------------------------------------------------------------------
Stephens 191 3,410 185 188 N/A
- ------------------------------------------------------------------------------------------------------------
Putnam Putnam
Putnam Tax Exempt Tax-Free Putnam
Tax Exempt Money Market High Yield Tax-Free
Income Fund Fund Fund Insured Fund
(Sept. 30, (Sept. 30, (July 31, (July 31,
2003) 2003) 2003) 2003)
- ---------------------------------------------------------------------------------------------
Baxter $7,701 $9,528 $6,346 $6,346
- ---------------------------------------------------------------------------------------------
Hill 21,278 26,324 17,534 17,534
- ---------------------------------------------------------------------------------------------
Jackson 10,843 13,415 8,934 8,934
- ---------------------------------------------------------------------------------------------
Joskow 8,131 10,059 6,690 6,690
- ---------------------------------------------------------------------------------------------
Mullin 8,810 10,899 7,264 7,264
- ---------------------------------------------------------------------------------------------
Stephens 3,459 4,280 2,848 2,848
- ---------------------------------------------------------------------------------------------
Putnam
U.S. Government
Income Trust
(Sept. 30,
2003)
- ------------------------------------------------------------------------------------------------------------
Baxter $11,962
- ------------------------------------------------------------------------------------------------------------
Hill 33,049
- ------------------------------------------------------------------------------------------------------------
Jackson 16,842
- ------------------------------------------------------------------------------------------------------------
Joskow 12,629
- ------------------------------------------------------------------------------------------------------------
Mullin 13,683
- ------------------------------------------------------------------------------------------------------------
Stephens 5,373
- ------------------------------------------------------------------------------------------------------------
(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 this table for Mr. Smith reflect benefits earned under
the funds' 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.
(*) Putnam Floating Rate Income Fund and Putnam Prime Money Market Fund
commenced operations after December 31, 2003.
Under a Retirement Plan for Trustees of the Putnam funds (the "Plan"),
each Trustee who retires with at least five years of service as a
Trustee of the funds is entitled to receive an annual retirement benefit
equal to one-half of the average annual compensation paid to such
Trustee for 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 to a
Trustee at the time of such termination or amendment, or (ii) to which a
current Trustee would have been entitled had he or she retired immediately
prior to such termination or amendment.
2. ADOPTION OF STANDARDIZED FUNDAMENTAL INVESTMENT RESTRICTIONS
As described in the following proposals, the Trustees recommend that
shareholders of the affected funds approve the elimination of and
revisions to certain fundamental investment restrictions currently
observed by such funds. Generally, the purpose of these proposed changes
is to increase each 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 have "fundamental" investment restrictions governing
certain of its investment practices. Investment companies may also
voluntarily designate restrictions relating to other investment
practices as fundamental. "Fundamental" investment restrictions can be
changed only by a shareholder vote.
The proposed elimination of and revisions to certain of the fundamental
investment restrictions of the funds are discussed below. By eliminating
those fundamental investment restrictions that are not required and
revising those fundamental investment restrictions that are required,
the Trustees believe that Putnam Management will be better able to
manage the funds in a changing regulatory or investment environment. In
addition, the process of monitoring the funds' compliance with
investment restrictions will be simplified.
To the extent multiple proposals apply to the same fund, the adoption of
any of these proposals is not contingent on the adoption of any other
proposal.
2.A. AMENDING FUNDAMENTAL INVESTMENT RESTRICTIONS WITH RESPECT TO
BORROWING.
Affected funds:
Putnam Arizona Tax Exempt Income Fund
Putnam Florida Tax Exempt Income Fund
Putnam Michigan Tax Exempt Income Fund
Putnam Minnesota Tax Exempt Income Fund
Putnam New Jersey Tax Exempt Income Fund
Putnam Ohio Tax Exempt Income Fund
Putnam Pennsylvania Tax Exempt Income Fund
Putnam Diversified Income Trust
Putnam Global Income Fund
Putnam High Yield Trust
Putnam High Yield Advantage Fund
Putnam Income Fund
Putnam Intermediate U.S. Government Income Fund
Putnam Money Market Fund
Putnam Municipal Income Fund
Putnam Tax Exempt Income Fund
Putnam Tax Exempt Money Market Fund
Putnam Tax-Free High Yield Fund
Putnam Tax-Free Insured 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 is 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 Arizona Tax Exempt Income Fund
Putnam Florida Tax Exempt Income Fund
Putnam Michigan Tax Exempt Income Fund
Putnam Minnesota Tax Exempt Income Fund
Putnam New Jersey Tax Exempt Income Fund
Putnam Ohio Tax Exempt Income Fund
Putnam Pennsylvania Tax Exempt Income Fund
Putnam Diversified Income Trust
Putnam Global Income Fund
Putnam High Yield Trust
Putnam High Yield Advantage Fund
Putnam Income Fund
Putnam Intermediate U.S. Government Income Fund
Putnam Money Market Fund
Putnam Municipal Income Fund
Putnam Tax Exempt Income Fund
Putnam Tax Exempt Money Market Fund
Putnam Tax-Free High Yield Fund
Putnam Tax-Free Insured 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:)
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 reflect the standard restriction expected to be used by the
other Putnam funds.
Under the 1940 Act, a "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,
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.
A "non-diversified" fund is not subject to the 1940 Act restriction
discussed above, but is only subject to the rules under the Internal
Revenue Code of 1986, as amended (the "Code"), which require that a fund
diversify its holdings at the end of each fiscal quarter such that, with
respect to 50% of the fund'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 fund's assets is not subject to this 5% limitation, although
with respect to that portion of its assets the fund may not invest more
than 25% in any issuer. Neither of these 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 proposed amended fundamental investment restrictions are set forth
below:
"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 or to securities issued by other investment
companies." (For Putnam Arizona Tax Exempt Income Fund, Putnam Florida
Tax Exempt Income Fund, Putnam Global Income Trust, and Putnam New
Jersey Tax Exempt Income Fund only (collectively, the "non-diversified"
funds).)
OR
"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 or to securities issued by other investment companies,
and that insurers of tax-exempt securities are not considered issuers of
securities for this purpose. (For Putnam Tax-Free High Yield Fund and
Putnam Tax-Free Insured Fund only (together, the "tax-free diversified"
funds).)
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 other than the non-diversified funds and the
tax-free diversified funds.)
If the proposed change is approved, each 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 restrictions would continue to exclude from its
limitations U.S. government securities, cash and cash items, and would
also exclude from its limitations securities of other investment
companies. The proposed changes 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 fund invests all or a
portion of its available cash in a Putnam cash management investment
vehicle, such as a Putnam money market fund, rather than directly in
short-term instruments. If the proposed change is approved, each
affected fund will be able to invest up to 25% of its total assets in a
Putnam money market fund or other Putnam cash management investment
vehicle, in accordance with the conditions set forth in the SEC
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 permit an affected fund's management team to focus
on the management of the principal investments of the fund.
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 fund are present at the meeting in person or by proxy.
2.D. AMENDING FUNDAMENTAL INVESTMENT RESTRICTION WITH RESPECT TO THE
ISSUANCE OF SENIOR SECURITIES.
Affected fund:
Putnam New York Tax Exempt Income Fund
The Trustees recommend that the affected fund's fundamental
investment restriction with respect to the issuance of senior securities
be revised to reflect the standard restriction expected 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 to distribution of assets or dividends and technically
includes all indebtedness over 5% of the fund's assets. The affected
fund currently has one of the following investment restrictions which
states that the fund may not:
"Issue any class of securities which is senior to the fund's shares of
beneficial interest."
The proposed amended fundamental restriction is set forth below:
"The fund may not... [i]ssue any class of securities which is senior to
the fund's shares of beneficial interest, except for permitted
borrowings."
The 1940 Act imposes limitations on an investment company's ability to
issue senior securities. This revised investment restriction is intended
to simplify and standardize the language of the funds' policies
concerning senior securities, and to permit the affected fund to take full
advantage of all investment flexibility permitted under applicable law.
Required vote. Approval of this proposal requires the affirmative vote
of the lesser of (1) more than 50% of the outstanding shares of such
fund, or (2) 67% or more of the shares of such 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.E. ELIMINATING FUNDAMENTAL INVESTMENT RESTRICTION WITH RESPECT TO
PURCHASING OR SELLING OPTIONS, PUTS, CALLS, STRADDLES AND SPREADS.
Affected fund: Putnam U.S. Government Income Trust.
The Trustees recommend that the fund's fundamental investment
restriction with respect to investments in options, puts, calls,
straddles, spreads or combinations thereof be eliminated. The current
fundamental investment restriction states that the affected fund may
not:
"Purchase or sell options, or puts, calls, straddles, spreads or
combinations thereof, except that the fund may write covered call
options with respect to any part or all of its portfolio securities and
enter into closing purchase transactions with respect to such options."
If the proposal is approved, the fund would be able to engage in a
variety of transactions involving the use of options. The affected fund
would continue to be able to write covered call options with respect to
its portfolio securities and enter into closing purchase transactions
with respect to such options. Putnam Management believes that this
increased investment flexibility could assist the affected fund in
achieving its investment objective. Putnam Management also believes that
elimination of this investment restriction would reduce administrative
and compliance burdens by conforming the fund's fundamental investment
restrictions with other Putnam funds which currently do not have a
fundamental investment restrictions with respect to investments in
options.
The fund may purchase put options to protect its portfolio holdings in
an underlying security against a decline in market value. Such
protection is provided during the life of the put option since the fund,
as holder of the option, is able to sell the underlying security at the
put exercise price regardless of any decline in the underlying
security's market price. In order for a put option to be profitable, the
market price of the underlying security must decline sufficiently below
the exercise price to cover the premium and transaction costs. By using
put options in this manner, a fund will reduce any profit it might
otherwise have realized from appreciation of the underlying security by
the premium paid for the put option and by transaction costs.
The fund may purchase call options to hedge against an increase in the
price of securities that the fund wants ultimately to buy. Such hedge
protection is provided during the life of the call option since the
fund, as holder of the call option, is able to buy the underlying
security at the exercise price regardless of any increase in the
underlying security's market price. In order for a call option to be
profitable, the market price of the underlying security must rise
sufficiently above the exercise price to cover the premium and
transaction costs.
The successful use of a fund's options strategies depends on the ability
of Putnam Management to forecast correctly interest rate and market
movements. When a fund purchases an option, it runs the risk that it
will lose its entire investment in the option in a relatively short
period of time, unless the fund exercises the option or enters into a
closing sale transaction before the option's expiration. If the price of
the underlying security does not rise (in the case of a call) or fall
(in the case of a put) to an extent sufficient to cover the option
premium and transaction costs, the fund will lose part or all of its
investment in the option. This contrasts with an investment by the fund
in the underlying security, since the fund will not realize a loss if
the security's price does not change.
The effective use of options also depends on a fund's ability to
terminate option positions at times when Putnam Management deems it
desirable to do so. There is no assurance that the fund will be able to
effect closing transactions at any particular time or at an acceptable
price.
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 fund are present at the meeting in person or by proxy.
2.F. AMENDING FUNDAMENTAL INVESTMENT RESTRICTION WITH RESPECT TO
INVESTMENTS IN COMMODITIES.
Affected fund: Putnam U.S. Government Income Trust.
The Trustees are recommending that the affected fund's fundamental
investment restriction with respect to investments in commodities
contracts be revised to reflect the standard restriction used by the
other Putnam funds and to increase the affected fund's investment
flexibility. The current restriction states that the fund may not:
"Purchase or sell commodities or commodity contracts."
The proposed amended fundamental restriction is set forth below:
"The fund may not ... [p]urchase or sell commodities or commodity
contracts, except that the fund may purchase and sell financial futures
contracts and options, and may enter into foreign exchange contracts and
other financial transactions not involving physical commodities."
Under the revised restriction, the fund will be able to engage in a
variety of transactions involving the use of financial futures and
related options, as well as various other financial transactions, to the
extent consistent with its investment objective and policies. Putnam
Management believes this investment flexibility could assist the fund in
achieving its investment objective, in part because such strategies
often offer opportunities for hedging and increased investment return.
The addition of financial transactions not involving physical
commodities is intended to give the fund maximum flexibility to invest
in a variety of financial instruments that could technically be
considered commodities, but which do not involve the direct purchase and
sale of physical commodities, which are the intended focus of the
restriction.
Foreign exchange transactions are subject to many of the risks
associated with futures and options. However, given the affected fund's
current investment policies, Putnam Management has no present intention
of engaging in such transactions on behalf of the fund.
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 fund are present at the meeting in person or by proxy.
3. ADOPTION OF AMENDMENT TO DECLARATIONS OF TRUST.
Affected funds: All funds
The Trustees of each 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 the Trust 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 proposed amendment to each Declaration of
Trust. The proposed amendment to each Declaration of Trust is set forth
below:
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 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 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. 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.
Putnam Management recommended the proposed change to modernize and
standardize this provision of each Trust's or Fund's Declaration of Trust.
The Declarations of Trust are currently silent on the matter of the
permitted form of redemption payments or permit only a cash payment.
Although the Trusts and Funds have no current intention to redeem their
shares other than for cash, Putnam Management believes that the explicit
authority to pay 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 approval of this proposal requires the affirmative vote of
shareholders holding a majority of the shares of the Trust entitled to
vote.
For each Fund that operates as the sole series of Trust, approval of
this proposal requires the affirmative vote of shareholders holding a
majority of the shares of such Fund outstanding.
Further information about voting and the meeting
Quorum and Methods of Tabulation. The shareholders of each fund vote
separately with respect to each proposal other than the election of
Trustees (Proposal 1) and approving the amendment 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 case of each
fund, 30% of the shares entitled to vote 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. With respect to the election of Trustees, neither
abstentions nor broker non-votes have an effect on the outcome of the
proposal. With respect to any other proposals, abstentions and broker
non-votes have the effect of a vote "against" the proposal.
Other business. The Trustees know of no matters other than those set
forth herein to be brought before the meeting. If, however, any other
matters properly come before the meeting, it is the Trustees' intention
that proxies will be voted on such matters in accordance with the
judgment of the persons named in the enclosed form of proxy.
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. In addition to soliciting proxies by mail,
Trustees of your fund and employees of Putnam Management, Putnam
Fiduciary Trust Company, and Putnam Retail Management may solicit
proxies in person or by telephone. Your fund may arrange to have a proxy
solicitation firm call you to record your voting instructions by
telephone. The procedures for voting proxies by telephone are designed
to authenticate shareholders' identities, to allow them 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. Your fund is unaware of any such challenge at this time.
Shareholders would be called at the phone number Putnam Management 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. The funds have retained at its own expense 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 mailing. The expenses of the preparation of proxy
statements and 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 meeting and voting in person.
Date for receipt of shareholders' proposals for subsequent meetings of
shareholders. Your fund does not hold regular shareholder meetings, but
may from time to time schedule special meetings. In accordance with the
regulations of the SEC, in order 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 scheduled special meeting.]
If a shareholder who wishes to present a proposal fails to notify the
fund within a reasonable time 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
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, the persons named as proxies may propose
adjournments of the meeting for a period or periods of not more than 60
days in the aggregate to permit further solicitation of proxies. [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 meeting
to be adjourned.] The persons named as proxies will vote in favor of
adjournment those proxies that they are entitled to vote in favor of the
proposals. They will vote against any such adjournment those proxies
required to be voted against the 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 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. Box 41203, Providence, RI 02940-1203 or 1-800-225-1581.
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 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 each 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.
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 following table presents fees billed in each of the last two fiscal
years for services rendered to each fund by PricewaterhouseCoopers LLP
or KPMG LLP:
AUDIT FEES 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 the 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 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 funds' 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 under common control with Putnam Management that provides ongoing
services to the funds was pre-approved by the Committee or a 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 last two fiscal years, the funds' principal auditors did
not bill for services required to be approved pursuant to paragraph
(c)(7)(ii) of Rule 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 or its
affiliates or their ownership of stock of Marsh & McLennan Companies, Inc.,
the parent corporation of Putnam Investments Trust and indirectly of Putnam
LLC, Messrs. Haldeman, Putnam, III and Smith (nominees for Trustees of your
fund), as well as the officers of your fund, will benefit from the
management fees, distribution fees, custodian fees, and investor servicing
fees paid or allowed by the fund. In addition to Mr. Putnam, III, the other
officers of each fund are as follows:
Year first
Name (birthdate) elected to Business experience
Office with the fund office during past 5 years
- -------------------------------------------------------------------------------------------
Charles E. Porter (7/26/38) 1989 Managing Director,
Executive Vice President, Putnam Investments
Associate Treasurer and Principal and Putnam Management
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 Putnam Investments
Principal Accounting Officer
- -------------------------------------------------------------------------------------------
Beth Mazor (4/6/58) 2002 Senior Vice President,
Vice President Putnam Investments
- -------------------------------------------------------------------------------------------
Daniel T. Gallagher (2/27/62) 2004 Vice President, Putnam
Vice President & Legal and Compliance Investments. Prior to
Liaison Officer 2004, Mr. Gallagher was an
Associate at 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 & 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
American Arizona California Diversified Florida
Government Tax Exempt Tax Exempt Income Tax Exempt
Class Income Fund Income Fund Income Fund Trust Income
- -----------------------------------------------------------------------------------------------------------
Class A shares 106,841,863.856 9,827,565.558 253,922,993.043 133,964,637.803 17,679,589.020
- -----------------------------------------------------------------------------------------------------------
Class B shares 12,148,059.834 2,026,206.709 30,591,828.236 55,052,441.304 3,747,962.890
- -----------------------------------------------------------------------------------------------------------
Class C shares 749,470.509 2,900,481.735 29,543,631.823
- -----------------------------------------------------------------------------------------------------------
Class M shares 436,400.629 139,438.000 821,452.105 343,895,680.305 80,341.478
- -----------------------------------------------------------------------------------------------------------
Class R shares 116.666 490.017
- -----------------------------------------------------------------------------------------------------------
Class Y shares 1,728,390.760 2,387,517.350
- -----------------------------------------------------------------------------------------------------------
Putnam Putnam Putnam Putnam
Global High High Yield Putnam Intermediate
Income Yield Advantage Income US Government
Class Trust Trust Fund Fund Fund
- ----------------------------------------------------------------------------------------------------------
Class A shares 8,282,918.384 244,665,944.062 80,518,695.878 148,769,401.848 70,457,332.575
- ----------------------------------------------------------------------------------------------------------
Class B shares 2,465,018.490 87,433,438.251 24,765,520.529 52,369,555.113 41,056,642.554
- ----------------------------------------------------------------------------------------------------------
Class C shares 143,164.078 7,987,882.094 4,515,099.500 3,902,406.643
- ----------------------------------------------------------------------------------------------------------
Class M shares 2,545,506.934 3,340,206.114 98,076,345.774 92,369,504.161 1,906,767.762
- ----------------------------------------------------------------------------------------------------------
Class R shares 84.275 8,164.692 578,400.000 7,643,601.000
- ----------------------------------------------------------------------------------------------------------
Class Y shares 31,128,686.821 3,866,803.244 119,309,994.474 32,839,747.040
- ----------------------------------------------------------------------------------------------------------
Putnam Putnam Putnam Putnam
Massachusetts Michigan Minnesota Money
Tax Exempt Tax Exempt Tax Exempt Market
Class Income Fund Income Fund Fund Fund
- ---------------------------------------------------------------------------------------------
Class A shares 28,572,166.753 12,952,658.852 11,105,098.794 3,731,454,647.020
- ---------------------------------------------------------------------------------------------
Class B shares 9,222,983.012 3,554,759.659 3,763,461.983 582,955,633.690
- ---------------------------------------------------------------------------------------------
Class C shares 111,879.026 47,349,668.100
- ---------------------------------------------------------------------------------------------
Class M shares 118,839.008 930,981.971 55,756,324.380
- ---------------------------------------------------------------------------------------------
Class R shares 30,997.900
- ---------------------------------------------------------------------------------------------
Class Y shares 112,117,207.020
- ---------------------------------------------------------------------------------------------
Putnam Putnam
Putnam New Jersey New York
Municipal Tax Exempt Tax Exempt
Income Income Income
Class Fund Fund Fund
- ------------------------------------------------------------------------
Class A shares 74,274,863.117 18,972,902.650 140,948,671.932
- ------------------------------------------------------------------------
Class B shares 14,858,497.617 8,250,459.382 14,237,539.582
- ------------------------------------------------------------------------
Class C shares 1,470,215.772 1,101,028.038
- ------------------------------------------------------------------------
Class M shares
- ------------------------------------------------------------------------
Class R shares
- ------------------------------------------------------------------------
Class Y shares
- ------------------------------------------------------------------------
Putnam Putnam Putnam Putnam Putnam Putnam
Ohio Tax Exempt Penn. Tax Exempt Prime Tax Exempt Tax Exempt Tax-Free
Income Income Money Income Money Market High Yield
Class Fund Fund Market Fund Fund Fund
- -----------------------------------------------------------------------------------------------------------------------------
Class A shares 17,035,313.695 17,025,346.788 3,721,397,966.000 151,482,334.487 128,275,266.190 64,583,318.628
- -----------------------------------------------------------------------------------------------------------------------------
Class B shares 3,642,849.703 5,601,722.403 8,641,174.999 14,678,451.562
- -----------------------------------------------------------------------------------------------------------------------------
Class C shares 1,115,022.462 853,208.487
- -----------------------------------------------------------------------------------------------------------------------------
Class M shares 97,367.224 250,526.293 783,560.696 559,313.369
- -----------------------------------------------------------------------------------------------------------------------------
Class R shares
- -----------------------------------------------------------------------------------------------------------------------------
Class Y shares
- -----------------------------------------------------------------------------------------------------------------------------
Putnam Putnam
Tax-Free U.S. Government
Insured Income
Class Fund Trust
- --------------------------------------------------------
Class A shares 19,435,922.343 113,039,358.877
- --------------------------------------------------------
Class B shares 7,576,789.721 24,728,513.513
- --------------------------------------------------------
Class C shares 686,191.234 2,255,748.990
- --------------------------------------------------------
Class M shares 77,183.848 4,040,910.427
- --------------------------------------------------------
Class R shares 106.329
- --------------------------------------------------------
Class Y shares 2,058,258.656
- --------------------------------------------------------
* Putnam Floating Rate Income Fund commenced operations after June 30, 2004.
As of June 30, 2004, the following persons owned or record or to the
knowledge of the fund beneficially 5% or more of any class of shares of
each fund***:
Putnam Putnam Putnam
American Arizona Tax California Tax
Government Exempt Exempt
CLASS Income Fund Income Fund Income Fund
- --------------------------------------------------------------------------------------
A Edward D. Jones & Co Merrill, Lynch, Pierce,
201 Progress Pkwy Fenner & Smith Inc.
Maryland Heights, MO 4800 Deer Lake Dr E
63043-3003 Jacksonville, FL 32246
(14.20%) (7.50%)
Citigroup Global
Markets Inc.
333 W 34th St. FL 3
New York NY
10001-2402
(9.50%)
- --------------------------------------------------------------------------------------
B Merrill, Lynch, Pierce,
Fenner & Smith Inc.
4800 Deer Lake Dr E
Jacksonville, FL 32246
(8.30%)
Citigroup Global
Markets Inc.
333 W 34th St. FL 3
New York NY
10001-2402
(10.80%)
- --------------------------------------------------------------------------------------
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 Jacksonville, FL
32246-6484 32246-6484
(6.80%) (10.00%)
Citigroup Global
Markets Inc.
333 W 34th St. FL 3
New York NY
10001-2402
(12.50%)
- --------------------------------------------------------------------------------------
M Burch West, Inc. Edward D. Jones & Co Edward D. Jones & Co
(5.71%) 201 Progress Pkwy 201 Progress Pkwy
Maryland Heights, Maryland Heights,
MO 63043-3003 MO 63043-3003
(23.30%) (24.70%)
Professional Insurance L & F Investments, Ltd. William L Rosenberg
Services 4121 North 64th Place (7.40%)
1221 Kestrel Ct. Scottsdale, AZ
Waukesha, WI 85251-3109
53189-7776 (21.60%)
(10.90%)
- --------------------------------------------------------------------------------------
M Harold Azmelian LPL Financial Services
Philip Arpiarian 9785 Towne
(5.20%) Center Drive
San Diego, CA
92121-1968
(19.80%)
Pershing LLC
P.O. Box 2052
Jersey City, NJ
07303-2052
(13.30%)
- --------------------------------------------------------------------------------------
R Putnam Investments LLC*
(96.40%)
- --------------------------------------------------------------------------------------
Y Putnam Investments LLC*
(7.79%)
Raymond James
Financial, Inc.
Star Plan Trust*
(13.94%)
Illinois Toolworks Inc.
Savings and
Investment Plan*
(39.18%)
Putnam Investments
Profit Sharing Plan*
(16.44%)
- --------------------------------------------------------------------------------------
Putnam Putnam
Diversified Florida Tax
Income Exempt
CLASS Trust Income Fund
- -----------------------------------------------------------
A Edward D. Jones & Co Edward D. Jones & Co
201 Progress Pkwy 201 Progress Pkwy
Maryland Heights, MO Maryland Heights, MO
63043-3003 63043-3003
(10.90%) (7.40%)
Citigroup Global
Markets Inc.
333 W 34th St. FL 3
New York NY
10001-2402
(6.10%)
Merrill, Lynch, Pierce,
Fenner & Smith
4800 Dear Lake Dr. E
Jacksonville, FL
32246-6484
(8.60%)
- -----------------------------------------------------------
B Edward D. Jones & Co Merrill, Lynch, Pierce,
201 Progress Pkwy Fenner & Smith
Maryland Heights, MO 4800 Dear Lake Dr. E
63043-3003 Jacksonville, FL
(5.20%) 32246-6484
(11.70%)
Citigroup Global
Markets Inc.
333 W 34th St. FL 3
New York NY
10001-2402
(8.00%)
- -----------------------------------------------------------
C SMBC Friend
Securities Co., Ltd.
7-12 Kabuto-
Cho Nihonbashi
Chuo-Ku
Tokyo 103 Japan
(84.70%)
- -----------------------------------------------------------
M SMBC Friend Edward D. Jones & Co
Securities Co., Ltd. Maryland Heights, MO
Cho Nihonbashi 201 Progress Pkwy
Chuo-Ku Maryland Heights, MO
Tokyo 103 Japan 63043-3003
(99.10%) (11.40%)
Jack R. Goodwin
P.O. Box 1911
Inverness, FL
34451-1911
(18.00%)
National Financial
Services Corp.
Church Street Station
P.O. Box 3908
New York, NY 10008
(8.50%)
Marlene V S
Christie TTEE
(7.30%)
Paul S Dixon TTEE
(7.30%)
Steven D. Davis
759 Nightingale Dr.
Indialantic,
32903-4747
(6.70%)
Legg Mason Wood
Walker Inc.
(6.90%)
- -----------------------------------------------------------
R Putnam Investments LLC*
(21.40%)
Vito Spinosa
(71.30%)
MCB Trust Services
(6.90%)
- -----------------------------------------------------------
Y Putnam Investments LLC*
(11.26%)
Marsh & McLennan
Deferred Compensation
Plans
1166 Avenue of
the Americas
New York, NY
10036-2774
(37.01%)
Illinois Toolworks Inc.
Savings and
Investment Plan*
(24.26%)
Putnam Investments
Profit Sharing Plan*
(13.71%)
- -----------------------------------------------------------
Putnam Putnam
Global High
Income Yield
CLASS Trust Trust
- -----------------------------------------------------------
A Edward D. Jones & Co
201 Progress Pkwy
Maryland Heights,
MO 63043-3003
(20.70%)
- -----------------------------------------------------------
B Edward D. Jones & Co
201 Progress Pkwy
Maryland Heights,
MO 63043-3003
(9.90%)
- -----------------------------------------------------------
C Merrill, Lynch, Pierce, Merrill, Lynch, Pierce,
Fenner & Smith Fenner & Smith Inc.
4800 Dear Lake Dr. E 4800 Deer Lake Dr E
Jacksonville, FL Jacksonville, FL
32246-6484 32246-6384
(8.70%) (7.30%)
- -----------------------------------------------------------
C Citigroup Global Citigroup Global
Markets Inc. Markets Inc.
333 W 34th St. FL 3 333 W 34th St. FL 3
New York NY New York NY
10001-2402 10001-2402
(5.10%) (5.40%)
- -----------------------------------------------------------
M Tsubasa Securities Edward D. Jones & Co
Co., LTD 201 Progress Pkwy
4-2 Marunouchi 3- Maryland Heights,
ChomeChiyoda- MO 63043-3003
KuTokyo, Japan 100-8350
(95.90%) (13.60%)
- -----------------------------------------------------------
R Putnam Investments A.G. Edwards &
LLC* Sons Inc.
(100.00%) 1 N. Jefferson Ave.
St. Louis, MO
63103-2205
(76.90%)
MCB Trust Services
Cust. FBO
(20.80%)
Y Ohio Tuition Trust
Authority/College
Advantage Program**
(35.50%)
- --------------------------------------------------------------------------------------
Putnam Putnam
High Yield Putnam Intermediate US
Advantage Income Government
CLASS Fund Fund Fund
- --------------------------------------------------------------------------------------
A Edward D. Jones & Co Edward D. Jones & Co Board of Trustees of
201 Progress Pkwy 201 Progress Pkwy the Joint
Maryland Heights, Maryland Heights, (18.80%)
MO 63043-3003 MO 63043-3003
(13.50%) (12.50%)
Citibank, NA
390 Greenwich Street
New York, NY
10013-2375
(7.40%)
- --------------------------------------------------------------------------------------
B Edward D. Jones & Co Edward D. Jones & Co Merrill, Lynch, Pierce,
201 Progress Pkwy 201 Progress Pkwy Fenner & Smith Inc.
Maryland Heights, MO Maryland Heights, MO 4800 Deer Lake Dr E
63043-3003 63043-3003 Jacksonville, FL 32246
(7.30%) (5.80%) (7.90%)
Citigroup Global
Markets Inc.
333 W 34th St. FL 3
New York NY 10001-
(6.90%)
- --------------------------------------------------------------------------------------
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-
(7.30%) (5.60%)
- --------------------------------------------------------------------------------------
M Mitsubishi Securities Mizuho Investors
Co. LTD Securities Co., Ltd
Tokyo-Sumitomo Attn: General Manager
Twin Bldg East Investment Trust
27 1 Shinkawa 2 Department
Chome Chou Ku Shibusawa City Place A.
Tokyo Japan 104 13-16, Nihonbashi-
(97.50%) Kayaba-cho 1-chome
Chuo-ku, Tokyo 104,
Japan
(96.30%)
- --------------------------------------------------------------------------------------
R Putnam Investments MCB Trust Services
LLC* Cust. FBO
(27.10%) (78.30%)
National Quality MCB Trust Services
Review Inc TTEE (19.00%)
(31.50%)
MCB Trust Services
(26.40%)
MCB Trust Services
Cust. FBO
(14.60%)
- --------------------------------------------------------------------------------------
Y Putnam Investments LLC* College Advantage Board of Trustees
(16.96%) (8.90%) (93.30%)
Raymond James
Financial, Inc.
Star Plan Trust*
(7.14%)
Marsh & McLennan
Deferred Compensation
Plans
1166 Avenue of
the Americas
New York, NY
10036-2774
(24.05%)
Illinois Toolworks Inc.
Savings and
Investment Plan*
(30.88%)
Putnam Investments
Profit Sharing Plan*
(16.42%)
- --------------------------------------------------------------------------------------
Putnam Putnam Putnam
Massachusetts Michigan Minnesota
Tax Exempt Tax Exempt Tax Exempt Class
CLASS Income Fund Income Fund 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
(19.70%) (23.80%)
- --------------------------------------------------------------------------------------
B 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
(7.20%) (6.00%)
- --------------------------------------------------------------------------------------
C US Clearing Corp
(33.20%)
Robert C Osheas &
(25.50%)
Joan A Fitzgerald
(24.40%)
Fiserv Securities, Inc.
(9.40%)
- --------------------------------------------------------------------------------------
M Merrill, Lynch, Pierce, Edward D. Jones & Co Pershing, LLC
Fenner & Smith Inc. 201 Progress Pkwy P.O. Box 2052
4800 Deer Lake Dr E Maryland Heights, MO Jersey City, NJ
Jacksonville, FL 32246 63043-3003 07303-2052
(8.00%) (15.10%) (19.00%)
UBS Financial A.G Edwards & Louise C. Larson
Services, Inc. Sons Inc. 8106 Highwood Drive
P.O. Box 3321 1 N. Jefferson Ave. Apt. Y116
Weehawken, NJ St. Louis, MO Bloomington, MN
07086-8154 63103-2205 55438-3042
(13.80%) (30.30%) (13.20%)
Leonard Joiner Frank R. Farkas Gertrude L
150 Hampshire Road 1832 Ada Avenue Palubicki Tod
Methuen, MA Muskegon, MI (8.20%)
01844-111711 49492-4206
(7.50%) (13.00%)
Andrea Matoes Pauline B. Pickford UBS Financial
(5.30%) 64 Pleasant St. Services, Inc.
Oxford, MI P.O. Box 3321
48371-4648 Weehawken, NJ
(9.00%) 07086-8154
(7.90%)
First Clearing UBS Financial LPL Financial Services
Corporation Services, Inc. 9785 Towne
(5.30%) P.O. Box 3321 Center Drive
Weehawken, NJ San Diego, CA
07086-8154 92121-1968
(8.60%) (5.10%)
- --------------------------------------------------------------------------------------
M Southwest Securities
Inc FBO
(5.10%)
- --------------------------------------------------------------------------------------
R
- --------------------------------------------------------------------------------------
T
- --------------------------------------------------------------------------------------
Y
- --------------------------------------------------------------------------------------
Putnam Putnam Putnam Putnam
Money Municipal New Jersey Tax New York Tax
Market Income Exempt Exempt Class
CLASS Fund Fund Income Fund Income Fund
- ---------------------------------------------------------------------------------------------------------------
A Edward D. Jones & Co Citigroup Global Merrill, Lynch, Pierce,
201 Progress Pkwy Markets Inc. Fenner & Smith Inc.
Maryland Heights, MO 333 W 34th St. FL 3 4800 Deer Lake Dr E
63043-3003 New York NY 10001- Jacksonville, FL 32246
(17.20%) (7.70%) (9.00%)
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-
(6.40%) (7.20%)
- ---------------------------------------------------------------------------------------------------------------
B Edward D. Jones & Co Citigroup Global Merrill, Lynch, Pierce,
201 Progress Pkwy Markets Inc. Fenner & Smith Inc.
Maryland Heights, MO 333 W 34th St. FL 3 4800 Deer Lake Dr E
63043-3003 New York NY 10001- Jacksonville, FL 32246
(7.10%) (7.90%) (8.80%)
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-
(5.60%) (9.10%)
- ---------------------------------------------------------------------------------------------------------------
C Citigroup Global Citigroup Global
Markets Inc. Markets Inc.
333 W 34th St. FL 3 333 W 34th St. FL 3
New York NY 10001- New York NY 10001-
(6.40%) (8.60%)
Merrill, Lynch, Pierce,
Fenner & Smith Inc.
4800 Deer Lake Dr E
Jacksonville, FL 32246
(16.70%)
Klaus Gueldenpennig
31 Lazy Trl.
Penfield NY
14526-1703
(10.60%)
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M Edward D. Jones & Co Marie Franklin Pershing, LLC
201 Progress Pkwy March Exec P.O. Box 2052
Maryland Heights, MO (38.00%) Jersey City, NJ
63043-3003 07303-2052
(20.00%) (22.40%)
Citigroup Global Merrill, Lynch, Pierce, Concetta Lacorte
Markets Inc. Fenner & Smith Inc. 9005 165th Avenue
333 W 34th St. FL 3 4800 Deer Lake Dr E Jacksonville, FL 32246
New York NY 10001- Howard Beach, NY (11.70%)
(6.20%) 11414
(10.70%)
Pershing, LLC US Clearing Corp Edward D. Jones & Co
P.O. Box 2052 (9.10%) 201 Progress Pkwy
Jersey City, NJ Maryland Heights,
07303-2052 MO 63043-3003
(6.40%) (9.10%)
Peggy L Seaman TTEE Leonard Cavaliere Albert Detiberiis
(5.80%) 21 King George Road 8905 103rd Avenue
Warren, NJ Ozone Park, NY
07059-7014 11417-1358
(7.50%) (6.80%)
LPL Financial Services Josiah H Compton &
9785 Towne (5.20%)
Center Drive
San Diego, CA
92121-1968
(5.00%)
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R
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T
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Putnam Putnam Putnam
Ohio Tax Pennsylvania Tax Exempt
Exempt Tax Exempt Income Class
CLASS Income Fund Income Fund Fund
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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
(20.80%) (22.40%)
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B Merrill, Lynch, Pierce, Merrill, Lynch, Pierce, Edward D. Jones & Co
Fenner & Smith Inc. Fenner & Smith Inc. 201 Progress Pkwy
4800 Deer Lake Dr E 4800 Deer Lake Dr E Maryland Heights,
Jacksonville, FL 32246 Jacksonville, FL 32246 MO 63043-3003
(12.20%) (5.20%) (8.10%)
- --------------------------------------------------------------------------------------
B Merrill, Lynch, Pierce,
Fenner & Smith Inc.
4800 Deer Lake Dr E
Jacksonville, FL 32246
(6.60%)
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C Citigroup Global
Markets Inc.
333 W 34th St. FL 3
New York NY 10001-
(5.60%)
Primevest Financial
Services (FBO)
(8.70%)
- --------------------------------------------------------------------------------------
M Edward D. Jones & Co John J. Handley Edward D. Jones & Co
201 Progress Pkwy P.O. Box 294-4 201 Progress Pkwy
Maryland Heights, Dallas, PA 18612-9454 Maryland Heights,
MO 63043-3003 (17.00%) MO 63043-3003
(33.50%) (33.10%)
Pershing, LLC J. J. B. Hilliard, LPL Financial Services
P.O. Box 2052 W. L. Lyons, Inc 9785 Towne
Jersey City, NJ (10.30%) Centre Drive
07303-2052 San Diego, CA
(10.20%) 92121-1968
(6.00%)
Merrill, Lynch, Pierce, Lawrence A. D'Angelo Deborah B. Burris
Fenner & Smith Inc. 906 General 417 Kings Hwy
4800 Deer Lake Dr E Howe Drive Milford DE
Jacksonville, FL 32246 West Chester, PA 19382-7106
(7.50%) 19963-1763 (5.70%)
(8.80%)
Wexford Clearing Grace R. Scalzo
Services Corp 59 High Street
(6.60%) Pittston, PA 18640
(7.50%)
Ray R Jeffery & UBS Financial
(5.50%) Services, Inc.
P.O. Box 3321
Weehawken, NJ
07086-8154
(7.40%)
Raymond James &
Assoc Inc. A G Edwards &
(5.40%) Sons Inc FBO
(5.10%)
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R
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T
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Putnam Putnam Putnam
Tax Exempt Tax-Free Tax-Free
Money Market High Yield Insured Class
CLASS Fund Fund Fund
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A John A Hill & Edward D. Jones & Co Edward D. Jones & Co
(8.40%) 201 Progress Pkwy 201 Progress Pkwy
Maryland Heights, Maryland Heights,
MO 63043-3003 MO 63043-3003
(16.10%) (13.40%)
Citigroup Global
Markets Inc.
333 W 34th St. FL 3
New York NY 10001-
(5.10%)
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B Edward D. Jones & Co Edward D. Jones & Co
201 Progress Pkwy 201 Progress Pkwy
Maryland Heights, Maryland Heights,
MO 63043-3003 MO 63043-3003
(10.50%) (6.90%)
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-
(9.00%) (6.80%)
Merrill, Lynch, Pierce,
Fenner & Smith Inc.
4800 Deer Lake Dr E
Jacksonville, FL 32246
(7.10%)
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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
(17.50%) (6.80%)
Citigroup Global Citigroup Global
Markets Inc. Markets Inc.
333 W 34th St. FL 3 333 W 34th St. FL 3
New York NY 10001- New York NY 10001-
(8.30%) (5.10%)
J.J.B. Hilliard, W.L.
Lyons, Inc.
P.O. Box 32760
Louisville, KY
40232-2760
(9.70%)
Ruth G. Doffing,
Trustee
863 Bahls Drive
Gastings, MN 55033
(7.70%)
Wells Fargo
Investments LLC
(5.20%)
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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
(23.40%) (28.60%)
Pershing, LLC
P.O. Box 2052
Jersey City, NJ
07303-2052
(20.70%)
Joan M Novak &
(5.70%)
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Putnam Putnam
U.S. Government Prime
Income Money Market
CLASS Trust Fund
- -----------------------------------------------------------
A Edward D. Jones & Co Putnam Investments
201 Progress Pkwy LLC*
Maryland Heights, (100.00%)
MO 63043-3003
(5.20%)
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B
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C Merrill, Lynch, Pierce,
Fenner & Smith Inc.
4800 Deer Lake Dr E
Jacksonville, FL 32246
(9.30%)
Citigroup Global
Markets Inc.
333 W 34th St. FL 3
New York NY 10001-
(7.90%)
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I Putnam Investments
LLC*
(100.00%)
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M Mitsubishi Securities
Co. Ltd
5-2, Marunouchi
2-chome,
Chiyoda-ku, Tokyo
100-0005 Japan
(79.00%)
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P 075
Diversified Income
(14.50%)
001 George Putnam
(11.40%)
004 Income Fund
(9.00%)
259 PAA Balanced
(5.80%)
007 Voyager Fund
(5.60%)
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R Putnam Investments Putnam Investments
LLC* LLC*
(73.10%) (100.00%)
Donald Merrigan
(19.00%)
MCB Trust Services
(6.00%)
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S Putnam Investments
LLC*
(100.00%)
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T
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Y Putnam Investments
LLC*
(73.80%)
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* 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.
*** Putnam Floating Rate Income Fund commenced operations after
June 30, 2004.
EXHIBIT A
THE PUTNAM FUNDS
Board Policy and Nominating Committee Charter
* This Committee reviews matters pertaining to the operations of the
Board of Trustees and its Committees and the conduct of legal affairs
for the Funds. 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 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 Funds 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 Arizona Tax Exempt Income Fund
Putnam California Tax Exempt Income Fund
Putnam Florida Tax Exempt Income Fund
Putnam Global Income Trust
Putnam High Yield Trust
Putnam High Yield Advantage Fund
Putnam Intermediate U.S. Government Income Fund
Putnam Massachusetts Tax Exempt Income Fund
Putnam Michigan Tax Exempt Income Fund
Putnam Minnesota Tax Exempt Income Fund
Putnam Money Market Fund
Putnam Municipal Income Fund
Putnam New Jersey Tax Exempt Income Fund
Putnam New York Tax Exempt Income Fund
Putnam Ohio Tax Exempt Income Fund
Putnam Pennsylvania Tax Exempt Income Fund
Putnam Tax Exempt Income Fund
Putnam Tax Exempt Money Market Fund
Putnam Tax-Free High Yield Fund
Putnam Tax-Free Insured Fund
"The fund may not. . . [b]orrow money in excess of 10% of the value
(taken at the lower of cost or current value) of the fund'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 Diversified Income Trust:
"The fund may not. . . [b]orrow money, except that the fund may borrow
amounts not exceeding 15% of the value (taken at the lower of cost or
current value) of its total assets (not including the amount borrowed)
at the time the borrowing is made for temporary purposes (including
repurchasing its shares while effecting an orderly liquidation of
portfolio securities) or for emergency purposes."
Putnam Income Fund:
"The fund may not. . . [b]orrow money in excess of 10% of its net assets
(taken at current value) and then only as a temporary measure for
extraordinary or emergency reasons and not for investment. (The fund may
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 Money Market Fund:
"The fund may not. . . [b]orrow money in excess of one-third of the value
(taken at the lower of cost 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 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 made. Interest paid on such borrowings would reduce the yield on the
fund's investments."
EXHIBIT C
Current Fundamental Investment
Restrictions with Respect to
Diversification of Investments
Putnam American Government Income Fund
Putnam California Tax Exempt Income Fund
Putnam Diversified Income Trust
Putnam High Yield Trust
Putnam High Yield Advantage Fund
Putnam Income Fund
Putnam Intermediate U.S. Government Income Fund
Putnam Massachusetts Tax Exempt Income Fund
Putnam Michigan Tax Exempt Income Fund
Putnam Minnesota Tax Exempt Income Fund
Putnam Money Market Fund
Putnam Municipal Income Fund
Putnam New York Tax Exempt Income Fund
Putnam Ohio Tax Exempt Income Fund
Putnam Pennsylvania Tax Exempt Income Fund
Putnam Tax Exempt Income Fund
Putnam Tax Exempt Money Market Fund
Putnam U.S. Government Income Trust
"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."
Putnam Tax-Free High Yield Fund and Putnam Tax-Free Insured Fund:
"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 and that insurers of tax-exempt securities are not
considered issuers of securities for this purpose. (Insurance policies
of which the Trust is a beneficiary are not considered securities for
purpose of this restriction.)"
Putnam Arizona Tax Exempt Income Fund, Putnam Florida Tax Exempt Income
Fund, and Putnam New Jersey Tax Exempt Income Fund:
"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 political
subdivisions."
Putnam Global Income 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 American Government Income Fund, Putnam California Tax Exempt Income
Fund, Putnam Global Income Trust, Putnam High Yield Advantage Fund, Putnam
High Yield Trust, Putnam Income Fund, Putnam Massachusetts Tax Exempt
Income Fund, Putnam Michigan Tax Exempt Income Fund, Putnam Minnesota Tax
Exempt Income Fund, Putnam New York Tax Exempt Income Fund, Putnam Ohio Tax
Exempt Income Fund and Putnam U.S. Government Income Trust:
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 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. 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.
Putnam Arizona Tax Exempt Income Fund, Putnam Diversified Income Trust,
Putnam Florida Tax-Exempt Income Fund, Putnam Intermediate U.S.
Government Income Fund, Putnam Municipal Income Fund, Putnam New Jersey
Tax Exempt Income Fund, Putnam Pennsylvania Tax Exempt Income Fund,
Putnam Prime Money Market Fund and Putnam Tax Exempt Money Market 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 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 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.
Putnam Tax-Free High Yield Fund and Putnam Tax-Free Insured 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 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, subject to any
applicable redemption or other charge. 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.
Putnam Money Market Fund:
Article VI
Distributions, Redemptions and Repurchases
Redemption and Repurchases
The Trust shall purchase such Shares as are offered by any Shareholder
for redemption, upon the presentation of a proper instrument of transfer
together with 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 described in Section 1 of this Article VI, next determined. 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
impracticable 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.
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 way
mutual fund shares are priced in exchange for investments that benefited
the managers and advisers of the funds, 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
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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 Growth and Putnam Trustees 2 of Delaware
Income, Putnam Europe Putnam Funds 3
Equity Fund, and (nominal)
Putnam Funds)
v. Putnam Investment
Management LLC, et al.
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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 [SECTION] 36 of
the Investment Company Act of 1940, [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
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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 William Woolverton of Maryland
Putnam Funds) Putnam Trustees
v. Putnam Investment Putnam Funds
Management, Inc., et al. (nominal)
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John K. Clement Putnam Management United States Nov. 26, 2003
(derivatively on behalf Omid Kamshad District Court
of several individual Justin Scott for the District
funds and the William Woolverton of Maryland
Putnam Funds) Putnam Trustees
v. Putnam Investment Putnam Funds
Management Inc., et al. (nominal)
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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 Putnam Putnam Trustees
Funds) v. Putnam Putnam Funds
Investment Management, (nominal)
Inc., et al.
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Diane Hutto and Putnam Management United States Nov. 12, 2003
Dina Rozenbaum Putnam Trustees District Court
(derivative on behalf Justin M. Scott for the District
of several individual Omid Kamshad of Maryland
funds and the Putnam Certain officers of
Funds) v. Putnam, LLC, the Putnam Funds and
et. al. Putnam Management
John Does 1-100
Putnam Funds
(nominal)
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Seth B. Marks (derivative Putnam Management United States Dec. 3, 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)
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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)
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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)
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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 and the Justin M. Scott of Maryland
Putnam Funds) Putnam Funds
v. Putnam Investment (nominal)
Management, et al.
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3. The plaintiffs named below allege that the defendants 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 breach 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
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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
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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
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Steven Wiegand Putnam Trustees United States Jan. 27, 2004
(derivatively on behalf Putnam Management District Court
of Putnam Classic Putnam Classic for the District
Equity Fund) Equity Fund of Maryland
v. Hill et al. (nominal)
Certain officers of
the Putnam Funds and
Putnam Management
- -------------------------------------------------------------------------------
4. The plaintiff named below alleges that defendants failed to prevent the
disclosure of confidential information concerning the identity of
securities, the practice of late trading by selected investors,
time-trading by selected investors and insider trading by directors,
officers and/or employees of the defendants. 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 W. Thomas Stephens, and former Trustees W.
Nicholas Thorndike and Lawrence J. Lasser.
3 "Putnam Funds" includes any and/or all registered investment companies
managed by Putnam Management.
4 The Directors of Marsh & McLennan Companies, Inc. are Charles Davis,
Lewis Bernard, Peter Coster, Robert Ebruru, Oscar Fanjul, Ray Groves,
Stephen Hardis, Gwendolyn King, Lord Lang of Monkton, David Olsen, Morton
Shapiro, Adele Simmons, and A.J. Smith.
PUTNAM INVESTMENTS
The Putnam Funds
One Post Office Square
Boston, Massachusetts 02109
Toll-free 1-800-225-1581 215939 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.
This proxy is solicited on behalf of the Trustees of the Fund.
Proxy for a meeting of shareholders to be held on November 11, 2004.
FUND NAME PRINTS HERE
FUND NAME PRINTS HERE
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 above referenced Fund 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.
Income 2 - dh
REFER TO PAGES ______ IN YOUR PROXY STATEMENT TO DETERMINE WHICH
PROPOSALS ARE APPLICABLE TO YOUR FUND(S).
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 the elimination of the fund's fundamental investment
restriction with respect to purchasing or selling options, puts, calls,
straddles and spreads.
FOR AGAINST ABSTAIN
2F. Approving an amendment to the fund's fundamental investment
restriction with respect to investments in commodities.
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.
Income 2 - 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.
Income 2 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.
Income 2 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 the elimination of the fund's fundamental investment
restriction with respect to purchasing or selling options, puts, calls,
straddles and spreads.
FOR AGAINST ABSTAIN
2F. Approving an amendment to the fund's fundamental investment
restriction with respect to investments in commodities.
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.
Income 2 EZ - dh
DETACH CONSOLIDATED PROXY CARD AT PERFORATION BELOW