SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(a)
OF THE SECURITIES EXCHANGE ACT OF 1934
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PUTNAM ASSET ALLOCATION FUNDS
PUTNAM CAPITAL APPRECIATION FUND
PUTNAM CLASSIC EQUITY FUND
PUTNAM CONVERTIBLE INCOME-GROWTH TRUST
PUTNAM DISCOVERY GROWTH FUND
PUTNAM EQUITY INCOME FUND
PUTNAM EUROPE EQUITY FUND
THE GEORGE PUTNAM FUND OF BOSTON
PUTNAM FUNDS TRUST
PUTNAM GLOBAL EQUITY FUND
PUTNAM GLOBAL NATURAL RESOURCES FUND
THE PUTNAM FUND FOR GROWTH AND INCOME
PUTNAM HEALTH SCIENCES TRUST
PUTNAM INTERNATIONAL EQUITY FUND
PUTNAM INVESTMENT FUNDS
PUTNAM INVESTORS FUND
PUTNAM NEW OPPORTUNITIES FUND
PUTNAM OTC & EMERGING GROWTH FUND
PUTNAM TAX SMART FUNDS TRUST
PUTNAM UTILITIES GROWTH AND INCOME FUND
PUTNAM VISTA FUND
PUTNAM VOYAGER FUND
(Name of Registrant as Specified In Its Charter)
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if other than Registrant)
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PUTNAM INVESTMENTS
August 2004
Dear Investment Colleague:
I am writing to let you know about an upcoming proxy solicitation to
Putnam fund shareholders. In early September, proxy materials will be
mailed to shareholders of all 58 Putnam retail open-end funds. In early
October, materials will be mailed to shareholders of all 28 Putnam
Variable Trust funds. Most notably, the proxy relates to the election of
the funds' Trustees. In addition, there are several administrative
proposals. Shareholders can vote by mail, phone, or online. We hope you
will encourage your clients to vote their proxies. The information below
will help you answer questions you might receive from clients about the
proxy votes.
Election of Trustees. Under this proposal, shareholders are asked to
elect the funds' Trustees. Under new SEC requirements applicable to most
mutual funds, at least 75% of a fund's Trustees, as well as its
chairperson, must be independent, which means that they are not
affiliated with the fund's investment advisor. Even prior to the recent
SEC ruling and, in fact, since July 1, 2000, the Putnam funds' Trustees
have met both independence requirements. We have always believed that
having a majority of Trustees who are independent enhances the ability
of the Trustees to effectively protect the interests of shareholders.
The Putnam funds currently have 11 Trustees, nine of whom are
independent. The Trustees have nominated three additional Trustees, two
of whom would be independent. In total, shareholders are asked to vote
for 14 Trustees, 11 of whom would be independent.
Approval of amendment to the funds' agreements and declarations of
trust. This proposal, which would affect all funds except Putnam Tax
Smart Equity Fund, would give the funds the flexibility to pay
redemptions in the form of securities rather than in cash. Although the
funds have no current intention of redeeming their shares in any form
other than cash, the explicit authority to pay a redemption wholly or
partially in kind may benefit a fund's remaining shareholders.
Approval of amendment to Putnam Equity Income Fund's investment
objective. This proposal would restate the fund's investment objective
to give greater emphasis to capital appreciation. Consistent with the
fund's non-fundamental policy of investing at least 80% of net assets in
common stocks and other equity investments that offer potential for
current income, the fund's management team would be able to give more
weight to stocks that offer capital appreciation potential.
Administrative changes
In general, the proposals below are administrative in nature, designed
to increase the funds' investment flexibility and to make their
investment restrictions simpler and more uniform across Putnam funds.
These changes would also help make Putnam's compliance monitoring more
efficient. The proposals seek to make changes to the funds' investment
restrictions with respect to the following:
Borrowing and lending. These proposals, which would affect 51 funds,
seek to bring the funds' borrowing and lending restrictions in line with
those currently in place for other Putnam funds. It is important to note
that it is not standard practice for any fund to borrow or lend money.
Diversification of investments. This proposal, which would affect all
funds except Putnam Floating Rate Income Fund, seeks to simplify the
funds' investment restrictions and make them uniform with respect to the
Investment Company Act's technical diversification requirements. The
proposal would not affect any fund's current status as a diversified or
non-diversified fund. In particular, the proposal would enhance the
funds' flexibility to use Putnam Prime Money Market Fund as a cash
investment vehicle.
Issuance of senior securities. This proposal, which would affect 12
funds, seeks to simplify and standardize the funds' policies regarding
senior securities, and to give these funds the maximum investment
flexibility permitted under the Investment Company Act. A senior
security has priority over any other security as to distribution of
assets or dividends.
Investments in commodities and purchasing or selling options, puts,
calls, straddles, and spreads. These proposals, which would only affect
Putnam U.S. Government Income Trust, seek to revise the fund's
commodities restriction and eliminate the fund's prohibition on
investments in options and related derivatives. Although the fund's
managers do not typically make these types of investments, these
proposals are designed to make the fund's investment flexibility
consistent with that of other Putnam funds.
The shareholder meeting for the retail open-end funds is scheduled to
take place on November 11, 2004. The meeting for the 28 Putnam Variable
Trust funds is scheduled for December 9, 2004.
I want to thank you in advance for helping your clients understand the
proxy process, the proposals, and the importance of voting. If you have
any questions, or would like more detailed information, please call
Putnam Dealer Marketing Services at 1-800-354-4000.
Sincerely,
Richard Monaghan
FOR DEALER USE ONLY
Putnam Retail Management
217177 8/04