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:
/ / Preliminary Proxy Statement
/ / Confidential, for Use of the Commission Only (as permitted by Rule
14a-6(e) (2))
/ X / 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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registration statement number, or the Form or Schedule and the date of
its filing.
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The proxy statement
This proxy statement can help you decide how you want to vote on important
issues relating to your Putnam fund. When you complete and sign your proxy
ballot, the Trustees of the funds will vote on your behalf exactly as you
have indicated. If you simply sign the proxy ballot, it will be voted in
accordance with the Trustees' recommendations on pages 8 and 9 of the
proxy statement. The Trustees recommend that shareholders vote in favor of
the proposals described in this document and listed on your proxy ballot.
Please take a few moments and decide how you want to vote. When
shareholders don't return their proxies in sufficient numbers, follow-up
solicitations are required, which cost your fund money.
You can vote by returning your proxy ballot in the envelope provided. Or
you can call our toll-free number, or go to the Web. See your proxy ballot
for the phone number and Web address. If you have proxy related questions,
please call 1-877-832-6360 or contact your financial advisor.
PUTNAM INVESTMENTS
[SCALE LOGO OMITTED]
Table of contents
A Message from the Chairman 1
Notice of Shareholder Meeting 3
Trustees' Recommendations 8
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 Fellow 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 card(s) by calling or
by voting via the Internet. We are asking for your vote on the election
of Trustees and, for certain funds, the additional matters indicated on
page 4.
As you may know, the SEC recently adopted rules designed to enhance the
independence and effectiveness of mutual fund trustees. Although
trustees do not manage fund portfolios, they play an important role in
protecting fund shareholders, and are responsible for approving the fees
paid to the fund's investment adviser and its affiliates, reviewing
overall fund expenses, selecting the fund's auditors, monitoring
conflicts of interests, overseeing the fund's compliance with federal
securities laws and voting proxies relating to the fund's portfolio
securities.
Your fund's Trustees believe that these responsibilities are best
carried out by a board that is independent of the fund's investment
adviser both in fact and in spirit. The new SEC rules effectively
require most funds to have a board of trustees whose independent
trustees (i.e., trustees who are not "interested persons" of the fund or
its investment adviser) constitute at least 75% of the board and whose
chairman is independent. Your fund has met both of these requirements
since July 1, 2000. We strongly supported these rules when initially
proposed by the SEC and are pleased that other fund families will soon
also be held to these standards.
It is also noteworthy that your fund's Trustees have been strong
proponents of other reforms in the mutual fund industry. We supported
new SEC rules requiring funds to make their proxy voting records
available to shareholders, and the Putnam funds were one of the first
major fund families to begin disclosing their proxy voting guidelines.
We also were one of the first mutual fund boards to end the practice of
using fund brokerage commissions to reward brokers for selling fund
shares.
In the proxy statement, you will also notice that your fund's
independent Trustees have nominated three new individuals to serve as
Trustees of your fund. Two of the three new nominees are independent,
and all three have had outstanding careers as leaders in the investment
management industry.
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(s) promptly. A postage-paid
envelope is enclosed for mailing, and Internet voting instructions are
listed at the top of your proxy card(s).
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 FLOATING RATE INCOME FUND
PUTNAM FLORIDA TAX EXEMPT 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 HIGH YIELD FUND
PUTNAM TAX-FREE INSURED 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.
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 funds on the
eighth floor of One Post Office Square, Boston, Massachusetts 02109, to
consider the following:
1. Electing your fund's nominees for 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 and
3. Approving an amendment to the 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
Proposal Proposal Description Affected Funds Page
- ---------------------------------------------------------------------------------------------------------------
1 Election
of Trustees All funds 10
- ---------------------------------------------------------------------------------------------------------------
2.A. Approving an Putnam Arizona Tax Exempt Income Fund Putnam Minnesota Tax Exempt Income Fund 46
amendment Putnam California Putnam Money Market Fund
to certain funds' Tax Exempt Income Fund Putnam Municipal Income Fund
fundamental Putnam Diversified Income Trust Putnam New Jersey Tax Exempt Income Fund
investment Putnam Florida Tax Exempt Income Fund Putnam New York Tax Exempt Income Fund
restrictions Putnam Global Income Trust Putnam Ohio Tax Exempt Income Fund
with respect Putnam High Yield Advantage Fund Putnam Pennsylvania Tax Exempt Income Fund
to borrowing Putnam High Yield Trust Putnam Tax Exempt Income Fund
Putnam Income Fund Putnam Tax Exempt Money Market Fund
Putnam Intermediate Putnam Tax-Free High Yield Fund
U.S. Government Income Fund Putnam Tax-Free Insured Fund
Putnam Massachusetts
Tax Exempt Income Fund
Putnam Michigan
Tax Exempt Income Fund
- ---------------------------------------------------------------------------------------------------------------
2.B. Approving an Putnam Arizona Tax Putnam Minnesota Tax Exempt Income Fund 48
amendment Exempt Income Fund Putnam Money Market Fund
to certain funds' Putnam California Tax Putnam Municipal Income Fund
fundamental Exempt Income Fund Putnam New Jersey Tax Exempt Income Fund
investment Putnam Diversified Income Trust Putnam New York Tax Exempt Income Fund
restrictions Putnam Floating Rate Income Fund Putnam Ohio Tax Exempt Income Fund
with respect Putnam Florida Tax Exempt Income Fund Putnam Pennsylvania Tax Exempt Income Fund
to making loans Putnam Global Income Trust Putnam Tax Exempt Income Fund
Putnam High Yield Advantage Fund Putnam Tax Exempt Money Market Fund
Putnam High Yield Trust Putnam Tax-Free High Yield Fund
Putnam Income Fund Putnam Tax-Free Insured Fund
Putnam Intermediate U.S.
Government Income Fund
Putnam Massachusetts Tax
Exempt Income Fund
Putnam Michigan Tax
Exempt Income Fund
- ---------------------------------------------------------------------------------------------------------------
2.C. Approving an All funds except Putnam 50
amendment Floating Rate Income Fund
to certain funds'
fundamental
investment
restrictions
with respect to
diversification
of investments
- ---------------------------------------------------------------------------------------------------------------
2.D. Approving an Putnam New York Tax Exempt Income Fund 53
amendment
to a funds'
fundamental
investment
restriction
with respect
to issuance
of senior
securities
- ---------------------------------------------------------------------------------------------------------------
2.E. Approving the Putnam U.S. Government Income Trust 54
elimination of
a fund's
fundamental
investment
restriction
with respect to
purchasing or
selling options,
puts, calls,
straddles and
spreads
- ---------------------------------------------------------------------------------------------------------------
2.F. Approving an Putnam U.S. Government Income Trust 55
amendment to
a fund's
fundamental
investment
restriction with
respect to
investments in
commodities
- ---------------------------------------------------------------------------------------------------------------
3 Approving an All funds 56
amendment to
certain funds'
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. For electing your fund's nominees for Trustees;
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
restriction 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 and
3. For approving an amendment to the funds' Agreements and
Declarations of Trust.
Please see the table beginning on page 6 for a list of the affected
funds for each proposal.
* 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, where in each 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 nominees for 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 Putnam
Investment Management, LLC, your fund's investment manager ("Putnam
Management"). Those Trustees who are not "interested persons" of your
fund or Putnam Management are referred to as "Independent Trustees"
throughout this proxy statement.
The Board Policy and Nominating Committee of each fund has fixed the
number of Trustees of each fund at 14 and recommends that you vote for
the election of the nominees described in the following pages.
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
following pages. This information includes each nominee's name, date of
birth, principal occupation(s) during the past five years and other
information about the nominee's professional background, including other
directorships the nominee holds. 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
serves as a Trustee of your fund. The address of all of the Trustees and
nominees is One Post Office Square, Boston, Massachusetts 02109. At
December 31, 2003, there were 101 Putnam funds.
Jameson A. Baxter (9/6/43)
Trustee since 1994
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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
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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)
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- ------------------------------------------
Ms. Drucker is a 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
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- ---------------------------------------
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
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- -------------------------------------------
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
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- -----------------------------------------
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
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- ---------------------------------------------
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
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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 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 The National
Humanities Center and 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. Prior to February
2004, he was a Director of Alex Brown Realty, Inc.
Mr. Mullin is also a past Director of Adolph Coors Company; ACX
Technologies, Inc.; Crystal Brands, Inc.; Dillon, Read & Co., Inc.;
Fisher-Price, Inc.; and The Ryland Group, Inc. 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
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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 adviser 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.
Effective November 2004, Mr. Stephens is expected to become Chief
Executive Officer of Boise Cascade, L.L.C. (a paper, forest products and
timberland assets company). Mr. Stephens serves as a Director of Xcel
Energy Incorporated (a public utility company) and TransCanada Pipelines
Limited. Until 2004, Mr. Stephens was a Director of Qwest Communications
and Norske Canada, Inc. (a paper manufacturer). 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)
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- --------------------------------------------
Mr. Worley is Managing Partner of Permit Capital LLC, an investment
management firm.
Mr. Worley serves on the Executive Committee of the University of
Pennsylvania Medical Center, is a Trustee of The Robert Wood Johnson
Foundation (a philanthropic organization devoted to health care issues)
and is a Director of The Colonial Williamsburg Foundation (a historical
preservation organization). Mr. Worley also serves on the investment
committees of Mount Holyoke College and World Wildlife Fund (a wildlife
conservation organization).
Prior to joining Permit Capital LLC in 2002, Mr. Worley served as Chief
Strategic Officer of Morgan Stanley Investment Management. He
previously served as President, Chief Executive Officer and Chief
Investment Officer of Morgan Stanley Dean Witter Investment Management
and as a Managing Director of Morgan Stanley, a financial services firm.
Mr. Worley also was the Chairman of Miller Anderson & Sherrerd, an
investment management firm. Mr. Worley holds a B.S. degree from
University of Tennessee and pursued graduate studies in economics at the
University of Texas.
* Interested Trustees
Charles E. Haldeman, Jr.* (10/29/48)
[GRAPHIC OMITTED: PHOTO OF CHARLES E. HALDEMAN, JR.]
- ---------------------------------------------------
Mr. Haldeman is President and Chief Executive Officer of Putnam, LLC
("Putnam Investments"). He is a member of Putnam Investments' Executive
Board of Directors and Advisory Council. Prior to November 2003, Mr.
Haldeman served as Co-Head of Putnam Investments' Investment Division.
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 currently serves as a Trustee of
Dartmouth College and as Emeritus Trustee of Abington Memorial Hospital.
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*]
- -------------------------------------------
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 adviser). 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.
- ---------------------------------------------------------------------
* 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 of each
fund, Putnam Management, Putnam Retail Management or Marsh & McLennan
Companies, Inc. and as shareholders of 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. The balance of the
nominees are not "interested persons."
Ms. Drucker and Mr. Haldeman were each recommended for consideration as
a nominee for Trustee of your fund by an Independent Trustee. Mr. Worley
was recommended for consideration as a nominee for Trustee of your fund
by a third-party search firm that was engaged by the Trustees. The
third-party search firm assisted the Trustees in identifying and
evaluating potential nominees.
The 14 nominees for 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.
The 1940 Act and the rules and regulations promulgated thereunder
require that your fund have a minimum proportion of trustees who are not
"interested persons" (as defined in the 1940 Act) of your fund or your
fund's investment manager. 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 14 nominees for election as
Trustee would be Independent Trustees.
Board committees. 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 auditor 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 Independent Trustees. The Committee
also reviews the funds' policies and procedures for achieving accurate
and timely pricing of the funds' shares, including oversight of fair
value determinations of individual securities made by Putnam Management
or other designated agents of the funds. The Committee oversees
compliance by money market funds with Rule 2a-7, interfund transactions
pursuant to Rule 17a-7 and the correction of occasional pricing errors.
The Committee also receives reports regarding the liquidity of portfolio
securities. The Trustees have adopted a written charter for the Audit
and Pricing Committee. The Committee currently consists of Drs. Joskow
(Chairperson) and Kennan and Messrs. Patterson and Stephens.
Board Policy and Nominating Committee. The Board Policy and Nominating
Committee reviews policy matters pertaining to the operations of the
Board of Trustees and its committees, the compensation of the Trustees
and their staff, and the conduct of legal affairs for the Putnam funds.
The Committee also oversees the voting of proxies associated with
portfolio investments of the Putnam funds, with the goal of ensuring
that these proxies are voted in the best interest of the funds'
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 who 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 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 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 meetings 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 Independent Trustees. 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
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, Ms. Baxter
and Dr. Kennan.
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 Independent Trustees. The Committee currently
consists of Ms. Baxter (Chairperson), Messrs. Curtis, Jackson and Mullin
and Dr. Kennan.
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. Each such committee will, among its
duties, identify any compliance issues that are unique to the category
of funds under its review and work with the appropriate board committees
to ensure that any such issues are properly addressed. 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 Com mit tee 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.
* How large a stake do the Trustees and nominees have in the Putnam
funds?
The Trustees believe each Trustee should, over time, have a significant
investment in the Putnam funds. The Trustees allocate their investments
among the Putnam funds based on their own investment needs. Except as
noted, 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. As a group, the Trustees owned shares of the Putnam
funds valued at over $40 million as of June 30, 2004.
TRUSTEE/NOMINEE HOLDINGS TABLE
Dollar Shares Dollar Range Shares Dollar Range Shares
Range of Beneficially of Beneficially of Beneficially
Trustees/Nominees Shares Owned Owned Shares Owned Owned Shares Owned Owned
- ------------------------------------------------------------------------------------------------------------------
Putnam Putnam Arizona Putnam California
American Government Tax Exempt Tax Exempt
Income Fund Income Fund Income Fund
- ------------------------------------------------------------------------------------------------------------------
Jameson A. Baxter $1-$10,000 373.242 $1-$10,000 160.524 $1-$10,000 203.235
- ------------------------------------------------------------------------------------------------------------------
Charles B. Curtis $1-$10,000 113.500 $1-$10,000 114.751 $1-$10,000 117.463
- ------------------------------------------------------------------------------------------------------------------
Myra R. Drucker -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
Charles E.
Haldeman, Jr.* $10,001-$50,000 1,180.601 $10,001-$50,000 1,147.541 $10,001-$50,000 1,250.458
- ------------------------------------------------------------------------------------------------------------------
John A. Hill Over $100,000 18,791.199 $1-$10,000 193.019 $1-$10,000 161.657
- ------------------------------------------------------------------------------------------------------------------
Ronald J. Jackson $1-$10,000 329.254 $1-$10,000 248.778 $1-$10,000 276.811
- ------------------------------------------------------------------------------------------------------------------
Paul L. Joskow $10,001-$50,000 1,310.637 $1-$10,000 143.201 $1-$10,000 157.272
- ------------------------------------------------------------------------------------------------------------------
Elizabeth T. Kennan $1-$10,000 558.324 $1-$10,000 100.358 $1-$10,000 115.775
- ------------------------------------------------------------------------------------------------------------------
John H. Mullin, III $1-$10,000 770.452 $1-$10,000 118.362 $1-$10,000 119.839
- ------------------------------------------------------------------------------------------------------------------
Robert E. Patterson $10,001-$50,000 1,900.014 $1-$10,000 100.096 $1-$10,000 100.195
- ------------------------------------------------------------------------------------------------------------------
George Putnam, III $10,001-$50,000 2,837.858 $1-$10,000 201.326 $1-$10,000 724.708
- ------------------------------------------------------------------------------------------------------------------
A.J.C. Smith $10,001-$50,000 1,259.162 $1-$10,000 202.244 $1-$10,000 476.329
- ------------------------------------------------------------------------------------------------------------------
W. Thomas Stephens $1-$10,000 294.155 $1-$10,000 136.749 $1-$10,000 142.080
- ------------------------------------------------------------------------------------------------------------------
Richard B. Worley -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
Dollar Shares Dollar Range Shares Dollar Range Shares
Range of Beneficially of Beneficially of Beneficially
Trustees/Nominees Shares Owned Owned Shares Owned Owned Shares Owned Owned
- ------------------------------------------------------------------------------------------------------------------
Putnam Putnam Florida Putnam
Diversified Tax Exempt Floating Rate
Income Trust Income Fund Income Fund+
- ------------------------------------------------------------------------------------------------------------------
Jameson A. Baxter $1-$10,000 791.219 $1-$10,000 161.246 -- --
- ------------------------------------------------------------------------------------------------------------------
Charles B. Curtis $1-$10,000 211.494 $1-$10,000 115.225 -- --
- ------------------------------------------------------------------------------------------------------------------
Myra R. Drucker -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
Charles E.
Haldeman, Jr.* $10,001-$50,000 1,203.586 $10,001-$50,000 1,129.032 -- --
- ------------------------------------------------------------------------------------------------------------------
John A. Hill $10,001-$50,000 1,665.185 $1-$10,000 201.341 -- --
- ------------------------------------------------------------------------------------------------------------------
Ronald J. Jackson $1-$10,000 523.382 $1-$10,000 247.657 -- --
- ------------------------------------------------------------------------------------------------------------------
Paul L. Joskow $1-$10,000 330.273 $1-$10,000 141.414 -- --
- ------------------------------------------------------------------------------------------------------------------
Elizabeth T. Kennan $1-$10,000 639.284 $1-$10,000 100.079 -- --
- ------------------------------------------------------------------------------------------------------------------
John H. Mullin, III $10,001-$50,000 1,346.013 $1-$10,000 122.188 -- --
- ------------------------------------------------------------------------------------------------------------------
Robert E. Patterson $10,001-$50,000 1,197.025 $1-$10,000 100.090 -- --
- ------------------------------------------------------------------------------------------------------------------
George Putnam, III $10,001-$50,000 4,632.543 $1-$10,000 204.739 -- --
- ------------------------------------------------------------------------------------------------------------------
A.J.C. Smith $1-$10,000 702.588 $1-$10,000 206.050 -- --
- ------------------------------------------------------------------------------------------------------------------
W. Thomas Stephens $1-$10,000 297.886 $1-$10,000 137.037 -- --
- ------------------------------------------------------------------------------------------------------------------
Richard B. Worley -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
+ As of June 30, 2004, the fund had not commenced investment operations.
Dollar Shares Dollar Range Shares Dollar Range Shares
Range of Beneficially of Beneficially of Beneficially
Trustees/Nominees Shares Owned Owned Shares Owned Owned Shares Owned Owned
- ------------------------------------------------------------------------------------------------------------------
Putnam Putnam Putnam
Global Income High Yield High Yield
Trust Advantage Fund Trust
- ------------------------------------------------------------------------------------------------------------------
Jameson A. Baxter $1-$10,000 142.684 $10,001-$50,000 2,185.672 Over $100,000 15,251.711
- ------------------------------------------------------------------------------------------------------------------
Charles B. Curtis $1-$10,000 120.043 $1-$10,000 135.973 $1-$10,000 248.824
- ------------------------------------------------------------------------------------------------------------------
Myra R. Drucker -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
Charles E.
Haldeman, Jr.* $10,001-$50,000 866.337 -- -- $10,001-$50,000 1,332.487
- ------------------------------------------------------------------------------------------------------------------
John A. Hill $1-$10,000 138.200 $1-$10,000 372.876 $10,001-$50,000 2,440.486
- ------------------------------------------------------------------------------------------------------------------
Ronald J. Jackson $1-$10,000 180.157 $1-$10,000 240.308 $1-$10,000 802.868
- ------------------------------------------------------------------------------------------------------------------
Paul L. Joskow $1-$10,000 280.928 $10,001-$50,000 2,556.215 $50,001-$100,000 12,459.724
- ------------------------------------------------------------------------------------------------------------------
Elizabeth T. Kennan $1-$10,000 313.191 $1-$10,000 432.732 $10,001-$50,000 1,515.797
- ------------------------------------------------------------------------------------------------------------------
John H. Mullin, III $1-$10,000 326.906 $1-$10,000 998.807 $10,001-$50,000 5,431.667
- ------------------------------------------------------------------------------------------------------------------
Robert E. Patterson $1-$10,000 724.444 Over $100,000 34,381.276 Over $100,000 216,655.635
- ------------------------------------------------------------------------------------------------------------------
George Putnam, III $10,001-$50,000 3,460.453 $10,001-$50,000 5,917.460 Over $100,000 38,572.725
- ------------------------------------------------------------------------------------------------------------------
A.J.C. Smith $1-$10,000 323.096 $1-$10,000 628.332 $1-$10,000 629.581
- ------------------------------------------------------------------------------------------------------------------
W. Thomas Stephens $1-$10,000 150.603 $1-$10,000 199.963 $1-$10,000 338.825
- ------------------------------------------------------------------------------------------------------------------
Richard B. Worley -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
Dollar Shares Dollar Range Shares Dollar Range Shares
Range of Beneficially of Beneficially of Beneficially
Trustees/Nominees Shares Owned Owned Shares Owned Owned Shares Owned Owned
- ------------------------------------------------------------------------------------------------------------------
Putnam Putnam
Intermediate Massachusetts
Putnam U.S. Government Tax Exempt
Income Fund Income Fund Income Fund
- ------------------------------------------------------------------------------------------------------------------
Jameson A. Baxter $10,001-$50,000 3,825.371 $1-$10,000 818.531 $1-$10,000 165.891
- ------------------------------------------------------------------------------------------------------------------
Charles B. Curtis $1-$10,000 116.635 $1-$10,000 114.138 $1-$10,000 1,14.740
- ------------------------------------------------------------------------------------------------------------------
Myra R. Drucker -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
Charles E.
Haldeman, Jr.* $10,001-$50,000 2,124.232 $10,001-$50,000 2,054.976 $10,001-$50,000 1,114.650
- ------------------------------------------------------------------------------------------------------------------
John A. Hill Over $100,000 29,995.745 $1-$10,000 1,441.013 $1-$10,000 152.543
- ------------------------------------------------------------------------------------------------------------------
Ronald J. Jackson $1-$10,000 564.555 $1-$10,000 286.321 $10,001-$50,000 1,137.880
- ------------------------------------------------------------------------------------------------------------------
Paul L. Joskow $1-$10,000 198.721 $1-$10,000 266.184 Over $100,000 11,293.791
- ------------------------------------------------------------------------------------------------------------------
Elizabeth T. Kennan $1-$10,000 336.428 $1-$10,000 710.252 $1-$10,000 100.000
- ------------------------------------------------------------------------------------------------------------------
John H. Mullin, III $1-$10,000 1,011.953 $1-$10,000 1,357.628 $1-$10,000 118.123
- ------------------------------------------------------------------------------------------------------------------
Robert E. Patterson $1-$10,000 1,405.850 $1-$10,000 804.650 $1-$10,000 100.000
- ------------------------------------------------------------------------------------------------------------------
George Putnam, III $10,001-$50,000 5,708.480 Over $100,000 46,171.316 $10,001-$50,000 5,162.366
- ------------------------------------------------------------------------------------------------------------------
A.J.C. Smith $1-$10,000 324.951 $1-$10,000 628.641 $1-$10,000 551.599
- ------------------------------------------------------------------------------------------------------------------
W. Thomas Stephens $1-$10,000 146.938 $1-$10,000 136.053 $1-$10,000 138.770
- ------------------------------------------------------------------------------------------------------------------
Richard B. Worley -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
Dollar Shares Dollar Range Shares Dollar Range Shares
Range of Beneficially of Beneficially of Beneficially
Trustees/Nominees Shares Owned Owned Shares Owned Owned Shares Owned Owned
- ------------------------------------------------------------------------------------------------------------------
Putnam Putnam Putnam
Michigan Minnesota Money
Tax Exempt Tax Exempt Market
Income Fund Income Fund Fund
- ------------------------------------------------------------------------------------------------------------------
Jameson A. Baxter $1-$10,000 163.483 $1-$10,000 161.749 $50,001-$100,000 54,491.25
- ------------------------------------------------------------------------------------------------------------------
Charles B. Curtis $1-$10,000 116.614 $1-$10,000 114.917 Over $100,000 212,358.93
- ------------------------------------------------------------------------------------------------------------------
Myra R. Drucker -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
Charles E.
Haldeman, Jr.* $10,001-$50,000 1,178.451 $10,001-$50,000 1,174.497 $10,001-$50,000 19,952.060
- ------------------------------------------------------------------------------------------------------------------
John A. Hill $1-$10,000 148.802 $1-$10,000 198.479 Over $100,000 811,273.270
- ------------------------------------------------------------------------------------------------------------------
Ronald J. Jackson $1-$10,000 251.828 $1-$10,000 251.977 $1-$10,000 328.12
- ------------------------------------------------------------------------------------------------------------------
Paul L. Joskow $1-$10,000 145.993 $1-$10,000 146.816 Over $100,000 160,928.960
- ------------------------------------------------------------------------------------------------------------------
Elizabeth T. Kennan $1-$10,000 100.000 $1-$10,000 100.001 $1-$10,000 3,072.570
- ------------------------------------------------------------------------------------------------------------------
John H. Mullin, III $1-$10,000 120.629 $1-$10,000 122.116 Over $100,000 2,074,611.130
- ------------------------------------------------------------------------------------------------------------------
Robert E. Patterson $1-$10,000 100.000 $1-$10,000 100.023 Over $100,000 126,710.520
- ------------------------------------------------------------------------------------------------------------------
George Putnam, III $1-$10,000 954.215 $1-$10,000 905.960 Over $100,000 183,030.300
- ------------------------------------------------------------------------------------------------------------------
A.J.C. Smith $1-$10,000 545.699 $1-$10,000 524.339 $10,001-$50,000 27,072.070
- ------------------------------------------------------------------------------------------------------------------
W. Thomas Stephens $1-$10,000 138.393 $1-$10,000 137.357 $1-$10,000 2,269.810
- ------------------------------------------------------------------------------------------------------------------
Richard B. Worley -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
Dollar Shares Dollar Range Shares Dollar Range Shares
Range of Beneficially of Beneficially of Beneficially
Trustees/Nominees Shares Owned Owned Shares Owned Owned Shares Owned Owned
- ------------------------------------------------------------------------------------------------------------------
Putnam Putnam Putnam
Municipal New Jersey New York
Income Tax Exempt Tax Exempt
Fund Income Fund Income Fund
- ------------------------------------------------------------------------------------------------------------------
Jameson A. Baxter $1-$10,000 676.438 $1-$10,000 166.331 $1-$10,000 493.188
- ------------------------------------------------------------------------------------------------------------------
Charles B. Curtis $1-$10,000 116.979 $1-$10,000 114.705 $1-$10,000 233.061
- ------------------------------------------------------------------------------------------------------------------
Myra R. Drucker -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
Charles E.
Haldeman, Jr.* $10,001-$50,000 1,232.394 $10,001-$50,000 1,161.504 $10,001-$50,000 1,203.142
- ------------------------------------------------------------------------------------------------------------------
John A. Hill $1-$10,000 239.628 $1-$10,000 206.217 $10,001-$50,000 4,576.070
- ------------------------------------------------------------------------------------------------------------------
Ronald J. Jackson $1-$10,000 264.706 $1-$10,000 251.225 $1-$10,000 529.950
- ------------------------------------------------------------------------------------------------------------------
Paul L. Joskow $1-$10,000 149.414 $1-$10,000 143.690 $1-$10,000 303.954
- ------------------------------------------------------------------------------------------------------------------
Elizabeth T. Kennan $1-$10,000 100.224 $1-$10,000 100.060 $1-$10,000 214.638
- ------------------------------------------------------------------------------------------------------------------
John H. Mullin, III $1-$10,000 124.607 $1-$10,000 118.725 $1-$10,000 241.729
- ------------------------------------------------------------------------------------------------------------------
Robert E. Patterson $1-$10,000 100.171 $1-$10,000 100.070 $1-$10,000 100.171
- ------------------------------------------------------------------------------------------------------------------
George Putnam, III $10,001-$50,000 2,320.476 $1-$10,000 205.904 $1-$10,000 810.480
- ------------------------------------------------------------------------------------------------------------------
A.J.C. Smith $1-$10,000 250.530 $1-$10,000 220.473 Over $100,000 46,884.001
- ------------------------------------------------------------------------------------------------------------------
W. Thomas Stephens $1-$10,000 142.912 $1-$10,000 136.830 $1-$10,000 141.918
- ------------------------------------------------------------------------------------------------------------------
Richard B. Worley -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
Dollar Shares Dollar Range Shares Dollar Range Shares
Range of Beneficially of Beneficially of Beneficially
Trustees/Nominees Shares Owned Owned Shares Owned Owned Shares Owned Owned
- ------------------------------------------------------------------------------------------------------------------
Putnam Putnam Putnam
Ohio Tax Pennsylvania Prime Money
Exempt Tax Exempt Market
Income Fund Income Fund Fund
- ------------------------------------------------------------------------------------------------------------------
Jameson A. Baxter $1-$10,000 162.330 $1-$10,000 168.993 -- --
- ------------------------------------------------------------------------------------------------------------------
Charles B. Curtis $1-$10,000 113.516 $1-$10,000 114.879 -- --
- ------------------------------------------------------------------------------------------------------------------
Myra R. Drucker -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
Charles E.
Haldeman, Jr.* $10,001-$50,000 1,167.964 $10,001-$50,000 1,246.330 -- --
- ------------------------------------------------------------------------------------------------------------------
John A. Hill $1-$10,000 213.657 $1-$10,000 211.449 -- --
- ------------------------------------------------------------------------------------------------------------------
Ronald J. Jackson $1-$10,000 252.102 $1-$10,000 252.47 -- --
- ------------------------------------------------------------------------------------------------------------------
Paul L. Joskow $1-$10,000 146.353 $1-$10,000 148.132 -- --
- ------------------------------------------------------------------------------------------------------------------
Elizabeth T. Kennan $1-$10,000 100.001 $1-$10,000 100.15 -- --
- ------------------------------------------------------------------------------------------------------------------
John H. Mullin, III $1-$10,000 120.706 $1-$10,000 119.071 -- --
- ------------------------------------------------------------------------------------------------------------------
Robert E. Patterson $1-$10,000 100.000 $1-$10,000 100.147 -- --
- ------------------------------------------------------------------------------------------------------------------
George Putnam, III $1-$10,000 945.051 $1-$10,000 738.282 -- --
- ------------------------------------------------------------------------------------------------------------------
A.J.C. Smith $1-$10,000 541.007 $1-$10,000 237.249 -- --
- ------------------------------------------------------------------------------------------------------------------
W. Thomas Stephens $1-$10,000 137.658 $1-$10,000 141.431 -- --
- ------------------------------------------------------------------------------------------------------------------
Richard B. Worley -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
Dollar Shares Dollar Range Shares Dollar Range Shares
Range of Beneficially of Beneficially of Beneficially
Trustees/Nominees Shares Owned Owned Shares Owned Owned Shares Owned Owned
- ------------------------------------------------------------------------------------------------------------------
Putnam Putnam Tax Putnam
Tax Exempt Exempt Money Tax-Free
Income Fund Market Fund High Yield Fund
- ------------------------------------------------------------------------------------------------------------------
Jameson A. Baxter $1-$10,000 658.704 $1-$10,000 6,806.670 $1-$10,000 535.414
- ------------------------------------------------------------------------------------------------------------------
Charles B. Curtis $1-$10,000 116.319 $1-$10,000 1,530.810 $1-$10,000 119.212
- ------------------------------------------------------------------------------------------------------------------
Myra R. Drucker -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
Charles E.
Haldeman, Jr.* $10,001-$50,000 1,208.718 $10,001-$50,000 10,500.000 $10,001-$50,000 844.051
- ------------------------------------------------------------------------------------------------------------------
John A. Hill $1-$10,000 525.038 Over $100,000 10,797,890.460 $1-$10,000 193.549
- ------------------------------------------------------------------------------------------------------------------
Ronald J. Jackson $1-$10,000 443.536 $1-$10,000 7,795.350 $1-$10,000 724.196
- ------------------------------------------------------------------------------------------------------------------
Paul L. Joskow $1-$10,000 151.028 $1-$10,000 3,161.000 $1-$10,000 146.145
- ------------------------------------------------------------------------------------------------------------------
Elizabeth T. Kennan $1-$10,000 115.143 $1-$10,000 150.720 $1-$10,000 100.000
- ------------------------------------------------------------------------------------------------------------------
John H. Mullin, III $1-$10,000 120.775 $1-$10,000 3,104.280 $1-$10,000 123.547
- ------------------------------------------------------------------------------------------------------------------
Robert E. Patterson $1-$10,000 183.514 $1-$10,000 100.000 $1-$10,000 100.044
- ------------------------------------------------------------------------------------------------------------------
George Putnam, III $10,001-$50,000 1,593.643 $1-$10,000 1,044.740 $10,001-$50,000 815.756
- ------------------------------------------------------------------------------------------------------------------
A.J.C. Smith $10,001-$50,000 4,600.831 Over $100,000 2,813,076.630 $1-$10,000 258.073
- ------------------------------------------------------------------------------------------------------------------
W. Thomas Stephens $1-$10,000 141.789 Over $100,000 989,693.400 $1-$10,000 147.574
- ------------------------------------------------------------------------------------------------------------------
Richard B. Worley -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
Dollar Shares Dollar Range Shares Dollar Range
Range of Beneficially of Beneficially of
Trustees/Nominees Shares Owned Owned Shares Owned Owned Shares Owned
- ------------------------------------------------------------------------------------------------------------------
Putnam Putnam
Tax-Free U.S. Government
Insured Fund Income Trust All Funds
- ------------------------------------------------------------------------------------------------------------------
Jameson A. Baxter $1-$10,000 174.619 $1-$10,000 179.554 Over $100,000
- ------------------------------------------------------------------------------------------------------------------
Charles B. Curtis $1-$10,000 117.555 $1-$10,000 111.481 Over $100,000
- ------------------------------------------------------------------------------------------------------------------
Myra R. Drucker -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
Charles E.
Haldeman, Jr.* $10,001-$50,000 705.645 $10,001-$50,000 805.215 Over $100,000
- ------------------------------------------------------------------------------------------------------------------
John A. Hill $1-$10,000 167.833 $1-$10,000 663.482 Over $100,000
- ------------------------------------------------------------------------------------------------------------------
Ronald J. Jackson $10,001-$50,000 829.309 $1-$10,000 179.874 Over $100,000
- ------------------------------------------------------------------------------------------------------------------
Paul L. Joskow $1-$10,000 134.559 $1-$10,000 157.863 Over $100,000
- ------------------------------------------------------------------------------------------------------------------
Elizabeth T. Kennan $1-$10,000 100.000 $1-$10,000 315.373 Over $100,000
- ------------------------------------------------------------------------------------------------------------------
John H. Mullin, III $1-$10,000 120.272 $1-$10,000 536.266 Over $100,000
- ------------------------------------------------------------------------------------------------------------------
Robert E. Patterson $1-$10,000 100.028 $10,001-$50,000 1,297.252 Over $100,000
- ------------------------------------------------------------------------------------------------------------------
George Putnam, III $1-$10,000 660.158 $10,001-$50,000 2,596.558 Over $100,000
- ------------------------------------------------------------------------------------------------------------------
A.J.C. Smith $1-$10,000 234.784 $10,001-$50,000 930.992 Over $100,000
- ------------------------------------------------------------------------------------------------------------------
W. Thomas Stephens $1-$10,000 141.724 $1-$10,000 142.111 Over $100,000
- ------------------------------------------------------------------------------------------------------------------
Richard B. Worley -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
* Holdings data for Mr. Haldeman are as of July 31, 2004.
Except with respect to class A shares of Putnam Tax Exempt Money Market
Fund (aggregate Trustee and officer holdings of which were approximately
11.32%), 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?
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 the Trustees on a periodic
basis.
* How often do the Trustees meet?
The Trustees meet each month (except August) over a two-day period to
review the operations of each Putnam fund. A portion of these meetings
is devoted to meetings of various committees of the board that focus on
particular matters. Each Trustee generally attends at least two formal
committee meetings during each regular meeting of the Trustees. 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. During 2003, the average Trustee participated in
approximately 49 committee and board meetings. 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 respect to Trustees' attendance at
shareholder meetings. The funds are not required under their Agreements
and Declarations of Trust to hold annual meetings, but have voluntarily
undertaken to hold such meetings at least every five years.
* What are the Trustees paid for their services?
Each Independent Trustee of your fund receives a fee for his or her
services. Each Independent Trustee also receives fees for serving as
Trustee of the other Putnam funds. Each Trustee receives an annual
retainer fee and an additional meeting fee for each Trustees' meeting
attended. Independent Trustees 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
Independent Trustees are Trustees of all the Putnam funds and receive
fees for their services from each fund.
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 solely of
Independent Trustees, 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 Retirement Retirement
benefits benefits benefits benefits
Aggregate accrued as Aggregate accrued as Aggregate accrued as Aggregate accrued as
compensation part of compensation part of compensation part of compensation part of
from the fund from the fund from the fund from the fund
fund (1) expenses fund (1) expenses fund (1) expenses fund (1) expenses
- ------------------------------------------------------------------------------------------------------------------------------
Putnam American Putnam Arizona Tax Putnam California Tax Putnam Diversified
Trustees Government Income Fund Exempt Income Fund Exempt Income Fund Income Trust
- ------------------------------------------------------------------------------------------------------------------------------
Jameson A. Baxter/
1994 (5) $2,445 $696 $763 $216 $3,738 $1,065 $4,421 $1,287
- ------------------------------------------------------------------------------------------------------------------------------
Charles B. Curtis/
2001 2,398 573 738 236 3,666 876 4,337 1,048
- ------------------------------------------------------------------------------------------------------------------------------
John A. Hill/
1985 (5)(7) 4,121 820 1,343 263 6,301 1,254 7,449 1,519
- ------------------------------------------------------------------------------------------------------------------------------
Ronald J. Jackson/
1996 (5) 2,399 644 757 211 3,667 985 4,338 1,191
- ------------------------------------------------------------------------------------------------------------------------------
Paul L. Joskow/
1997 (5) 2,422 515 786 151 3,703 787 4,380 965
- ------------------------------------------------------------------------------------------------------------------------------
Elizabeth T. Kennan/
1992 2,410 845 726 270 3,684 1,292 4,355 1,565
- ------------------------------------------------------------------------------------------------------------------------------
John H. Mullin, III/
1997 (5) 2,427 789 732 232 3,711 1,207 4,389 1,478
- ------------------------------------------------------------------------------------------------------------------------------
Robert E. Patterson/
1984 2,427 460 737 147 3,711 703 4,389 851
- ------------------------------------------------------------------------------------------------------------------------------
George Putnam, III/
1984 (7) 2,998 378 915 121 4,583 578 5,420 700
- ------------------------------------------------------------------------------------------------------------------------------
A.J.C. Smith/
1986 (6) -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
W. Thomas Stephens/
1997 (5) 2,383 720 746 210 3,643 1,102 4,308 1,351
- ------------------------------------------------------------------------------------------------------------------------------
Retirement Retirement Retirement Retirement
benefits benefits benefits benefits
Aggregate accrued as Aggregate accrued as Aggregate accrued as Aggregate accrued as
compensation part of compensation part of compensation part of compensation part of
from the fund from the fund from the fund from the fund
fund (1) expenses fund (1) expenses fund (1) expenses fund (1) expenses
- ------------------------------------------------------------------------------------------------------------------------------
Putnam Florida Tax Putnam Floating Rate Putnam Global Putnam High Yield
Trustees Exempt Income Fund Income Fund Income Trust Advantage Fund
- ------------------------------------------------------------------------------------------------------------------------------
Jameson A. Baxter/
1994 (5) $801 $226 $658 $161 $970 $284 $2,327 $694
- ------------------------------------------------------------------------------------------------------------------------------
Charles B. Curtis/
2001 775 246 639 225 959 240 2,302 601
- ------------------------------------------------------------------------------------------------------------------------------
John A. Hill/
1985 (5)(7) 1,410 274 1,267 210 1,633 333 3,919 807
- ------------------------------------------------------------------------------------------------------------------------------
Ronald J. Jackson/
1996 (5) 795 220 654 171 973 262 2,336 639
- ------------------------------------------------------------------------------------------------------------------------------
Paul L. Joskow/
1997 (5) 825 157 672 122 959 202 2,302 474
- ------------------------------------------------------------------------------------------------------------------------------
Elizabeth T. Kennan/
1992 763 282 633 215 952 343 2,285 833
- ------------------------------------------------------------------------------------------------------------------------------
John H. Mullin, III/
1997 (5) 769 242 634 187 963 310 2,310 731
- ------------------------------------------------------------------------------------------------------------------------------
Robert E. Patterson/
1984 774 153 638 116 964 187 2,313 455
- ------------------------------------------------------------------------------------------------------------------------------
George Putnam, III/
1984 (7) 962 126 800 96 1,195 153 2,867 372
- ------------------------------------------------------------------------------------------------------------------------------
A.J.C. Smith/
1986 (6) -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
W. Thomas Stephens/
1997 (5) 784 220 647 171 950 282 2,279 664
- ------------------------------------------------------------------------------------------------------------------------------
Retirement Retirement Retirement Retirement
benefits benefits benefits benefits
Aggregate accrued as Aggregate accrued as Aggregate accrued as Aggregate accrued as
compensation part of compensation part of compensation part of compensation part of
from the fund from the fund from the fund from the fund
fund (1) expenses fund (1) expenses fund (1) expenses fund (1) expenses
- ------------------------------------------------------------------------------------------------------------------------------
Putnam High Putnam Putnam Intermediate U.S. Putnam Massachusetts
Trustees Yield Trust Income Fund Government Income Fund Tax Exempt Income Fund
- ------------------------------------------------------------------------------------------------------------------------------
Jameson A. Baxter/
1994 (5) $4,072 $1,193 $4,100 $1,187 $2,270 $655 $862 $244
- ------------------------------------------------------------------------------------------------------------------------------
Charles B. Curtis/
2001 3,999 937 4,055 1,008 2,245 573 834 265
- ------------------------------------------------------------------------------------------------------------------------------
John A. Hill/
1985 (5)(7) 6,869 1,420 6,904 1,388 3,822 759 1,518 296
- ------------------------------------------------------------------------------------------------------------------------------
Ronald J. Jackson/
1996 (5) 4,007 1,109 4,115 1,095 2,278 601 856 237
- ------------------------------------------------------------------------------------------------------------------------------
Paul L. Joskow/
1997 (5) 4,039 939 4,057 838 2,246 439 888 170
- ------------------------------------------------------------------------------------------------------------------------------
Elizabeth T. Kennan/
1992 4,016 1,462 4,026 1,431 2,229 783 821 304
- ------------------------------------------------------------------------------------------------------------------------------
John H. Mullin, III/
1997 (5) 4,047 1,433 4,070 1,289 2,254 678 828 261
- ------------------------------------------------------------------------------------------------------------------------------
Robert E. Patterson/
1984 4,046 794 4,075 781 2,256 428 833 166
- ------------------------------------------------------------------------------------------------------------------------------
George Putnam, III/
1984 (7) 4,999 655 5,052 640 2,797 350 1,035 136
- ------------------------------------------------------------------------------------------------------------------------------
A.J.C. Smith/
1986 (6) -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
W. Thomas Stephens/
1997 (5) 3,973 1,315 4,015 1,173 2,223 615 843 237
- ------------------------------------------------------------------------------------------------------------------------------
Retirement Retirement Retirement Retirement
benefits benefits benefits benefits
Aggregate accrued as Aggregate accrued as Aggregate accrued as Aggregate accrued as
compensation part of compensation part of compensation part of compensation part of
from the fund from the fund from the fund from the fund
fund (1) expenses fund (1) expenses fund (1) expenses fund (1) expenses
- ------------------------------------------------------------------------------------------------------------------------------
Putnam Michigan Tax Putnam Minnesota Tax Putnam Money Putnam Municipal
Trustees Exempt Income Fund Exempt Income Fund Market Fund Income Fund
- ------------------------------------------------------------------------------------------------------------------------------
Jameson A. Baxter/
1994 (5) $779 $220 $773 $218 $5,069 $1,424 $1,951 $594
- ------------------------------------------------------------------------------------------------------------------------------
Charles B. Curtis/
2001 754 239 748 237 4,972 1,176 1,930 577
- ------------------------------------------------------------------------------------------------------------------------------
John A. Hill/
1985 (5)(7) 1,373 266 1,362 264 8,544 1,676 3,190 700
- ------------------------------------------------------------------------------------------------------------------------------
Ronald J. Jackson/
1996 (5) 774 214 768 212 4,974 1,317 1,953 559
- ------------------------------------------------------------------------------------------------------------------------------
Paul L. Joskow/
1997 (5) 802 153 797 152 5,022 1,048 1,928 399
- ------------------------------------------------------------------------------------------------------------------------------
Elizabeth T. Kennan/
1992 742 274 737 272 4,997 1,727 1,906 722
- ------------------------------------------------------------------------------------------------------------------------------
John H. Mullin, III/
1997 (5) 748 235 743 233 5,032 1,606 1,930 616
- ------------------------------------------------------------------------------------------------------------------------------
Robert E. Patterson/
1984 753 149 748 148 5,032 941 1,936 394
- ------------------------------------------------------------------------------------------------------------------------------
George Putnam, III/
1984 (7) 935 123 929 122 6,217 773 2,401 323
- ------------------------------------------------------------------------------------------------------------------------------
A.J.C. Smith/
1986 (6) -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
W. Thomas Stephens/
1997 (5) 762 214 774 212 4,940 1,467 1,905 558
- ------------------------------------------------------------------------------------------------------------------------------
Retirement Retirement Retirement Retirement
benefits benefits benefits benefits
Aggregate accrued as Aggregate accrued as Aggregate accrued as Aggregate accrued as
compensation part of compensation part of compensation part of compensation part of
from the fund from the fund from the fund from the fund
fund (1) expenses fund (1) expenses fund (1) expenses fund (1) expenses
- ------------------------------------------------------------------------------------------------------------------------------
Putnam New Jersey Tax Putnam New York Tax Putnam Ohio Tax Putnam Pennsylvania Tax
Trustees Exempt Income Fund Exempt Income Fund Exempt Income Fund Exempt Income Fund
- ------------------------------------------------------------------------------------------------------------------------------
Jameson A. Baxter/
1994 (5) $816 $233 $2,185 $660 $793 $224 $805 $227
- ------------------------------------------------------------------------------------------------------------------------------
Charles B. Curtis/
2001 790 253 2,161 573 768 244 779 248
- ------------------------------------------------------------------------------------------------------------------------------
John A. Hill/
1985 (5)(7) 1,438 282 3,679 768 1,398 272 1,418 276
- ------------------------------------------------------------------------------------------------------------------------------
Ronald J. Jackson/
1996 (5) 811 226 2,193 607 788 218 799 221
- ------------------------------------------------------------------------------------------------------------------------------
Paul L. Joskow/
1997 (5) 841 162 2,162 450 817 156 829 158
- ------------------------------------------------------------------------------------------------------------------------------
Elizabeth T. Kennan/
1992 778 290 2,145 792 756 280 767 284
- ------------------------------------------------------------------------------------------------------------------------------
John H. Mullin, III/
1997 (5) 784 249 2,169 694 762 240 773 243
- ------------------------------------------------------------------------------------------------------------------------------
Robert E. Patterson/
1984 789 158 2,172 433 766 152 778 154
- ------------------------------------------------------------------------------------------------------------------------------
George Putnam, III/
1984 (7) 980 130 2,692 354 952 125 966 127
- ------------------------------------------------------------------------------------------------------------------------------
A.J.C. Smith/
1986 (6) -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
W. Thomas Stephens/
1997 (5) 799 226 2,140 630 776 218 787 221
- ------------------------------------------------------------------------------------------------------------------------------
Retirement Retirement Retirement Retirement
benefits benefits benefits benefits
Aggregate accrued as Aggregate accrued as Aggregate accrued as Aggregate accrued as
compensation part of compensation part of compensation part of compensation part of
from the fund from the fund from the fund from the fund
fund (1) expenses fund (1) expenses fund (1) expenses fund (1) expenses
- ------------------------------------------------------------------------------------------------------------------------------
Putnam Prime Putnam Tax Exempt Putnam Tax Exempt Putnam Tax-Free
Trustees Money Market Fund Income Fund Money Market Fund High Yield Fund
- ------------------------------------------------------------------------------------------------------------------------------
Jameson A. Baxter/
1994 (5) $4,763 $1,129 $2,298 $655 $642 $184 $2,238 $618
- ------------------------------------------------------------------------------------------------------------------------------
Charles B. Curtis/
2001 4,670 931 2,254 539 629 151 2,195 478
- ------------------------------------------------------------------------------------------------------------------------------
John A. Hill/
1985 (5)(7) 8,029 1,328 3,873 771 1,081 217 3,774 738
- ------------------------------------------------------------------------------------------------------------------------------
Ronald J. Jackson/
1996 (5) 4,670 1,044 2,254 606 629 170 2,195 575
- ------------------------------------------------------------------------------------------------------------------------------
Paul L. Joskow/
1997 (5) 4,716 831 2,276 484 635 136 2,217 496
- ------------------------------------------------------------------------------------------------------------------------------
Elizabeth T. Kennan/
1992 4,694 1,369 2,265 795 632 223 2,206 759
- ------------------------------------------------------------------------------------------------------------------------------
John H. Mullin, III/
1997 (5) 4,728 1,275 2,281 742 637 209 2,222 756
- ------------------------------------------------------------------------------------------------------------------------------
Robert E. Patterson/
1984 4,728 745 2,281 433 637 122 2,222 412
- ------------------------------------------------------------------------------------------------------------------------------
George Putnam, III/
1984 (7) 5,838 612 2,817 356 787 100 2,745 340
- ------------------------------------------------------------------------------------------------------------------------------
A.J.C. Smith/
1986 (6) -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
W. Thomas Stephens/
1997 (5) 4,647 1,164 2,239 678 625 191 2,182 695
- ------------------------------------------------------------------------------------------------------------------------------
Estimated
Retirement Retirement annual
benefits benefits benefits Total
Aggregate accrued as Aggregate accrued as from all compensation
compensation part of compensation part of Putnam from all
from the fund from the fund funds upon Putnam
fund (1) expenses fund (1) expenses retirement (2) funds (3)(4)
- -----------------------------------------------------------------------------------------------------
Putnam Tax-Free Putnam U.S. Government
Trustees Insured Fund Income Trust
- -----------------------------------------------------------------------------------------------------
Jameson A. Baxter/
1994 (5) $1,171 $318 $3,982 $1,129 $100,000 $215,500
- -----------------------------------------------------------------------------------------------------
Charles B. Curtis/
2001 1,148 247 3,905 931 100,000 210,250
- -----------------------------------------------------------------------------------------------------
John A. Hill/
1985 (5)(7) 1,973 380 6,712 1,328 200,000 413,625
- -----------------------------------------------------------------------------------------------------
Ronald J. Jackson/
1996 (5) 1,148 296 3,907 1,044 100,000 214,500
- -----------------------------------------------------------------------------------------------------
Paul L. Joskow/
1997 (5) 1,160 255 3,945 831 100,000 215,250
- -----------------------------------------------------------------------------------------------------
Elizabeth T. Kennan/
1992 1,154 391 3,925 1,369 100,000 207,000
- -----------------------------------------------------------------------------------------------------
John H. Mullin, III/
1997 (5) 1,162 389 3,953 1,275 100,000 208,750
- -----------------------------------------------------------------------------------------------------
Robert E. Patterson/
1984 1,162 212 3,953 745 100,000 206,500
- -----------------------------------------------------------------------------------------------------
George Putnam, III/
1984 (7) 1,435 175 4,883 612 125,000 260,500
- -----------------------------------------------------------------------------------------------------
A.J.C. Smith/
1986 (6) -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------
W. Thomas Stephens/
1997 (5) 1,141 357 3,881 1,164 100,000 206,500
- -----------------------------------------------------------------------------------------------------
(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 Putnam
American Arizona Tax CA Tax Putnam Florida
Government Exempt Exempt Diversified Tax Exempt
Income Fund Income Fund Income Fund Income Trust Income Fund
(Sept. 30, (May 31, (Sept. 30, (Sept. 30, (May 31,
2003) 2003) 2003) 2003) 2003)
- ------------------------------------------------------------------------------------------
Baxter $6,694 $399 $10,836 $15,789 $422
- ------------------------------------------------------------------------------------------
Hill 18,495 1,058 29,937 43,623 1,118
- ------------------------------------------------------------------------------------------
Jackson 9,425 534 15,256 22,230 564
- ------------------------------------------------------------------------------------------
Joskow 7,067 407 11,440 16,669 430
- ------------------------------------------------------------------------------------------
Mullin 7,657 458 12,395 18,061 484
- ------------------------------------------------------------------------------------------
Stephens 3,007 179 4,867 7,092 189
- ------------------------------------------------------------------------------------------
Putnam U.S.
Putnam Intermediate
Putnam High Yield Putnam Putnam Government
Global Advantage High Yield Income Income
Income Trust Fund Trust Fund Fund
(Oct. 31, (Nov. 30, (Aug. 31, (Oct. 31, (Nov. 30,
2003) 2003) 2003) 2003) 2003)
- ------------------------------------------------------------------------------------------
Baxter $3,216 $9,716 $15,066 $10,527 $1,415
- ------------------------------------------------------------------------------------------
Hill 9,234 27,896 41,629 30,226 4,062
- ------------------------------------------------------------------------------------------
Jackson 4,741 14,317 21,204 15,520 2,085
- ------------------------------------------------------------------------------------------
Joskow 3,498 10,571 15,891 11,450 1,539
- ------------------------------------------------------------------------------------------
Mullin 3,677 11,107 17,242 12,037 1,617
- ------------------------------------------------------------------------------------------
Stephens 1,444 4,360 6,757 4,727 635
- ------------------------------------------------------------------------------------------
Putnam Putnam Putnam Putnam
Mass. Michigan Minnesota Putnam Putnam NJ Tax
Tax Exempt Tax Exempt Tax Exempt Money Municipal Exempt
Income Income Income Market Income Income
Fund Fund Fund Fund Fund Fund
(May 31, (May 31, (May 31, (Sept. 30, (March 31, (May 31,
2003) 2003) 2003) 2003) 2003) 2003)
- -----------------------------------------------------------------------------------------------------------
Baxter $451 $407 $402 $9,528 $4,707 $427
- -----------------------------------------------------------------------------------------------------------
Hill 1,196 1,078 1,066 26,324 11,945 1,130
- -----------------------------------------------------------------------------------------------------------
Jackson 604 544 538 13,415 5,978 570
- -----------------------------------------------------------------------------------------------------------
Joskow 460 414 410 10,059 4,625 434
- -----------------------------------------------------------------------------------------------------------
Mullin 517 466 461 10,899 5,397 489
- -----------------------------------------------------------------------------------------------------------
Stephens 202 182 180 4,280 2,112 191
- -----------------------------------------------------------------------------------------------------------
Putnam
Putnam Putnam Putnam Tax Exempt
NY Tax Ohio Tax Penn. Tax Putnam Money
Exempt Exempt Exempt Tax Exempt Market
Income Fund Income Fund Income Fund Income Fund Fund
(Nov. 30, (May 31, (May 31, (Sept. 30, (Sept. 30,
2003) 2003) 2003) 2003) 2003)
- -----------------------------------------------------------------------------------------
Baxter $7,600 $413 $419 $7,701 $414
- -----------------------------------------------------------------------------------------
Hill 21,820 1,094 1,110 21,278 1,143
- -----------------------------------------------------------------------------------------
Jackson 11,199 552 560 10,843 583
- -----------------------------------------------------------------------------------------
Joskow 8,269 420 427 8,131 437
- -----------------------------------------------------------------------------------------
Mullin 8,688 473 480 8,810 473
- -----------------------------------------------------------------------------------------
Stephens 3,410 185 188 3,459 186
- -----------------------------------------------------------------------------------------
Putnam
Putnam U.S.
Tax-Free Putnam Government
High Yield Tax-Free Income
Fund Insured Fund Trust
(July 31, (July 31, (Sept. 30,
2003) 2003) 2003)
- ------------------------------------------------------------
Baxter $6,346 $2,749 $11,962
- ------------------------------------------------------------
Hill 17,534 7,597 33,049
- ------------------------------------------------------------
Jackson 8,934 3,871 16,842
- ------------------------------------------------------------
Joskow 6,690 2,899 12,629
- ------------------------------------------------------------
Mullin 7,264 3,147 13,683
- ------------------------------------------------------------
Stephens 2,848 1,234 5,373
- ------------------------------------------------------------
(6) Marsh & McLennan Companies, Inc. compensates Mr. Smith for his
service as Trustee. Mr. Smith has waived any retirement benefits that he
is entitled to receive under the Retirement Plan for Trustees of the
Putnam funds.
(7) Includes additional compensation to Messrs. Hill and Putnam for
service as Chairman of the Trustees and President of the funds,
respectively.
(8) Estimated aggregate compensation from the fund and estimated
retirement benefits accrued as part of fund expenses are based on
amounts incurred during the fund's current fiscal year.
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 (currently the Board Policy and Nominating
Committee) 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. The Trustees have terminated the Plan with
respect to any Trustee first elected to the board after 2003.
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 across all Putnam funds.
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 California Tax Exempt Income Fund
Putnam Diversified Income Trust
Putnam Florida Tax Exempt 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 Tax Exempt Income Fund
Putnam Tax Exempt Money Market Fund
Putnam Tax-Free High Yield Fund
Putnam Tax-Free Insured Fund
The Trustees recommend 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
an affected 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 affected 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 the
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 California Tax Exempt Income Fund
Putnam Diversified Income Trust
Putnam Floating Rate Income Fund
Putnam Florida Tax Exempt 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 Tax Exempt Income Fund
Putnam Tax Exempt Money Market Fund
Putnam Tax-Free High Yield Fund
Putnam Tax-Free Insured Fund
The Trustees recommend 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 the following fundamental investment
restriction 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."
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 (including without limitation debt obligations issued by other
Putnam funds), 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 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 the
affected 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 except Putnam Floating Rate Income Fund
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 restrictions expected to be used by the
other Putnam funds, depending on whether the affected fund is a
"diversified" fund or a "non-diversified" fund.
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 affected 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 the
affected 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 the following fundamental 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 investment 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 fundamental 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 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 the
affected fund are present at the meeting in person or by proxy.
2.E. AMENDING 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 affected 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 affected 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 affected fund's
fundamental investment restrictions with other Putnam funds which
currently do not have a fundamental investment restrictions with respect
to investments in options.
A 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.
A 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 the
affected 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 affected 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 affected 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
affected 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 affected 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 the
affected fund are present at the meeting in person or by proxy.
3. APPROVING AN 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 authorization of, a
proposal to amend each Trust's and each Fund's Agreement and Declaration
of Trust (each a "Declaration of Trust") to expressly provide that the
Trust or Fund may pay redemption proceeds in kind (i.e., by delivering
portfolio securities rather than cash). Each Trust's and each Fund's
Declaration of Trust provides that it may be amended by the Trustees
when authorized by a Trust's or Fund's shareholders.
Exhibit D lists the Article and Section of each Declaration of Trust
that would be revised by the proposed amendment to such Declaration of
Trust. The proposed amendment to each Declaration of Trust is set forth
below:
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. Payment for any redemption, purchase or
repurchase 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 and could be construed as
permitting 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 in circumstances where a fund is facing significant
redemptions. If shares are redeemed in kind, the redeeming shareholder
would incur brokerage costs in converting the portfolio securities into
cash. If the proposal is approved by a Trust's or Fund's shareholders,
such Trust or Fund intends to file an election with the SEC under Rule
18f-1 of the 1940 Act, which commits the Trust or Fund to pay in cash
any request for redemption by a single shareholder during any 90-day
period of up to the lesser of $250,000 or 1% of the Trust's or Fund's
net asset value at the beginning of the 90-day period.
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 is not a series of a 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, the
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 PFPC Inc., 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 Putnam funds have retained at their 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 regularly hold annual shareholder
meetings, but may from time to time schedule special meetings. In
addition, your fund has voluntarily undertaken to hold shareholder
meetings at least every five years. 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. A
shareholder must submit the names of any such nominees in writing to the
fund, to the attention of the Clerk, at the address of the principal
offices of the fund.
If a shareholder who wishes to present a proposal at a special
shareholder meeting 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, each 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 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 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 registered public accounting firm. As listed below, the
Trustees have selected PricewaterhouseCoopers LLP, 125 High Street,
Boston, Massachusetts 02110, or KPMG, 99 High Street, Boston,
Massachusetts 02110, each an independent registered public accounting
firm for each fund's current fiscal year. These firms are among the
country's preeminent independent registered public 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 of
Pricewaterhouse Coopers LLP and KPMG LLP are expected to be present at
the meeting to make statements and to respond to appropriate questions.
The following tables present fees billed in each of the last two fiscal
years for services rendered to a fund by PricewaterhouseCoopers LLP:
Putnam American Putnam Global Putnam Massachusetts
Government Income Fund Income Trust Tax Exempt Income Fund
- ------------------------------------------------------------------------------------------------------
Audit Sept. 30, 2003 -- $58,551 Oct. 31, 2003 -- $61,947 May 31, 2004 -- $36,148
Fees Sept. 30, 2002 -- $48,104 Oct. 31, 2002 -- $53,027 May 31, 2003 -- $30,358
- ------------------------------------------------------------------------------------------------------
Audit-Related Sept. 30, 2003 -- $0 Oct. 31, 2003 -- $0 May 31, 2004 -- $0
Fees Sept. 30, 2002 -- $0 Oct. 31, 2002 -- $0 May 31, 2003 -- $0
- ------------------------------------------------------------------------------------------------------
Tax Fees Sept. 30, 2003 -- $3,616 Oct. 31, 2003 -- $8,537 May 31, 2004 -- $5,957
Sept. 30, 2002 -- $3,003 Oct. 31, 2002 -- $6,951 May 31, 2003 -- $4,972
- ------------------------------------------------------------------------------------------------------
All Other Sept. 30, 2003 -- $0 Oct. 31, 2003 -- $0 May 31, 2004 -- $75
Fees Sept. 30, 2002 -- $495 Oct. 31, 2002 -- $54 May 31, 2003 -- $0
- ------------------------------------------------------------------------------------------------------
Putnam Michigan Tax Putnam Minnesota Tax Putnam Money
Exempt Income Fund Exempt Income Fund Market Fund
- ------------------------------------------------------------------------------------------------------
Audit May 31, 2004 -- $34,732 May 31, 2004 -- $34,636 Sept. 30, 2003 -- $77,215
Fees May 31, 2003 -- $30,167 May 31, 2003 -- $30,184 Sept. 30, 2002 -- $58,006
- ------------------------------------------------------------------------------------------------------
Audit-Related May 31, 2004 -- $0 May 31, 2004 -- $0 Sept. 30, 2003 -- $0
Fees May 31, 2003 -- $0 May 31, 2003 -- $0 Sept. 30, 2002 -- $0
- ------------------------------------------------------------------------------------------------------
Tax Fees May 31, 2004 -- $5,925 May 31, 2004 -- $5,921 Sept. 30, 2003 -- $3,759
May 31, 2003 -- $4,940 May 31, 2003 -- $4,940 Sept. 30, 2002 -- $2,445
- ------------------------------------------------------------------------------------------------------
All Other May 31, 2004 -- $30 May 31, 2004 -- $28 Sept. 30, 2003 -- $0
Fees May 31, 2003 -- $0 May 31, 2003 -- $0 Sept. 30, 2002 -- $2,000
- ------------------------------------------------------------------------------------------------------
Putnam New Jersey Tax Putnam Ohio Tax Putnam Pennsylvania Tax
Exempt Income Fund Exempt Income Fund Exempt Income Fund
- ------------------------------------------------------------------------------------------------------
Audit May 31, 2004 -- $35,200 May 31, 2004 -- $36,315 May 31, 2004 -- $35,001
Fees May 31, 2003 -- $30,284 May 31, 2003 -- $31,562 May 31, 2003 -- $30,386
- ------------------------------------------------------------------------------------------------------
Audit-Related May 31, 2004 -- $0 May 31, 2004 -- $0 May 31, 2004 -- $0
Fees May 31, 2003 -- $0 May 31, 2003 -- $0 May 31, 2003 -- $0
- ------------------------------------------------------------------------------------------------------
Tax May 31, 2004 -- $5,934 May 31, 2004 -- $5,933 May 31, 2004 -- $5,935
Fees May 31, 2003 -- $4,957 May 31, 2003 -- $4,946 May 31, 2003 -- $4,954
- ------------------------------------------------------------------------------------------------------
All Other May 31, 2004 -- $52 May 31, 2004 -- $39 May 31, 2004 -- $42
Fees May 31, 2003 -- $0 May 31, 2003 -- $0 May 31, 2003 -- $0
- ------------------------------------------------------------------------------------------------------
Putnam Tax Exempt Putnam Tax-Free Putnam Tax-Free
Money Market Fund High Yield Fund Insured Fund
- ------------------------------------------------------------------------------------------------------
Audit Sept. 30, 2003 -- $34,245 July 31, 2003 -- $66,954 July 31, 2003 -- $50,317
Fees Sept. 30, 2002 -- $30,092 July 31, 2002 -- $55,875 July 31, 2002 -- $42,899
- ------------------------------------------------------------------------------------------------------
Audit-Related Sept. 30, 2003 -- $0 July 31, 2003 -- $0 July 31, 2003 -- $0
Fees Sept. 30, 2002 -- $0 July 31, 2002 -- $0 July 31, 2002 -- $0
- ------------------------------------------------------------------------------------------------------
Tax Sept. 30, 2003 -- $2,027 July 31, 2003 -- $5,703 July 31, 2003 -- $5,598
Fees Sept. 30, 2002 -- $1,963 July 31, 2002 -- $4,775 July 31, 2002 -- $4,726
- ------------------------------------------------------------------------------------------------------
All Other Sept. 30, 2003 -- $0 July 31, 2003 -- $0 July 31, 2003 -- $0
Fees Sept. 30, 2002 -- $0 July 31, 2002 -- $189 July 31, 2002 -- $59
- ------------------------------------------------------------------------------------------------------
The following table presents fees billed in each of the last two fiscal
years for services rendered to a fund by KPMG LLP:
Putnam Putnam Putnam
Arizona Tax California Tax Diversified
Exempt Income Fund Exempt Income Fund Income Trust
- ------------------------------------------------------------------------------------------------------
Audit May 31, 2004 -- $26,044 Sept. 30, 2003 -- $32,300 Sept. 30, 2003 -- $38,200
Fees May 31, 2003 -- $24,600 Sept. 30, 2002 -- $30,500 Sept. 30, 2002 -- $35,600
- ------------------------------------------------------------------------------------------------------
Audit-Related May 31, 2004 -- $0 Sept. 30, 2003 -- $0 Sept. 30, 2003 -- $0
Fees May 31, 2003 -- $0 Sept. 30, 2002 -- $0 Sept. 30, 2002 -- $0
- ------------------------------------------------------------------------------------------------------
Tax May 31, 2004 -- $3,600 Sept. 30, 2003 -- $3,600 Sept. 30, 2003 -- $3,600
Fees May 31, 2003 -- $3,400 Sept. 30, 2002 -- $3,400 Sept. 30, 2002 -- $3,400
- ------------------------------------------------------------------------------------------------------
All Other May 31, 2004 -- $25 Sept. 30, 2003 -- $0 Sept. 30, 2003 -- $0
Fees May 31, 2003 -- $1,731 Sept. 30, 2002 -- $1,731 Sept. 30, 2002 -- $1,731
- ------------------------------------------------------------------------------------------------------
Putnam Florida Tax Putnam Putnam High Yield
Exempt Income Fund High Yield Trust Advantage Fund
- ------------------------------------------------------------------------------------------------------
Audit May 31, 2004 -- $27,781 Aug. 31, 2003 -- $36,800 Nov. 30, 2003 -- $36,200
Fees May 31, 2003 -- $26,200 Aug. 31, 2002 -- $34,500 Nov. 30, 2002 -- $34,200
- ------------------------------------------------------------------------------------------------------
Audit-Related May 31, 2004 -- $0 Aug. 31, 2003 -- $0 Nov. 30, 2003 -- $0
Fees May 31, 2003 -- $0 Aug. 31, 2002 -- $0 Nov. 30, 2002 -- $0
- ------------------------------------------------------------------------------------------------------
Tax May 31, 2004 -- $3,600 Aug. 31, 2003 -- $3,600 Nov. 30, 2003 -- $3,300
Fees May 31, 2003 -- $3,400 Aug. 31, 2002 -- $3,400 Nov. 30, 2002 -- $3,100
- ------------------------------------------------------------------------------------------------------
All Other May 31, 2004 -- $48 Aug. 31, 2003 -- $0 Nov. 30, 2003 -- $0
Fees May 31, 2003 -- $1,731 Aug. 31, 2002 -- $1,731 Nov. 30, 2002 -- $1,731
- ------------------------------------------------------------------------------------------------------
Putnam Intermediate
Putnam U.S. Government Putnam Municipal
Income Fund Income Fund Income Fund
- ------------------------------------------------------------------------------------------------------
Audit Oct. 31, 2003 -- $37,400 Nov. 30, 2003 -- $25,300 Mar. 31, 2004 -- $34,400
Fees Oct. 31, 2002 -- $35,000 Nov. 30, 2002 -- $23,900 Mar. 31, 2003 -- $32,500
- ------------------------------------------------------------------------------------------------------
Audit-Related Oct. 31, 2003 -- $0 Nov. 30, 2003 -- $0 Mar. 31, 2004 -- $0
Fees Oct. 31, 2002 -- $0 Nov. 30, 2002 -- $0 Mar. 31, 2003 -- $0
- ------------------------------------------------------------------------------------------------------
Tax Oct. 31, 2003 -- $3,600 Nov. 30, 2003 -- $3,300 Mar. 31, 2004 -- $3,600
Fees Oct. 31, 2002 -- $3,400 Nov. 30, 2002 -- $3,100 Mar. 31, 2003 -- $3,400
- ------------------------------------------------------------------------------------------------------
All Other Oct. 31, 2003 -- $0 Nov. 30, 2003 -- $0 Mar. 31, 2004 -- $188
Fees Oct. 31, 2002 -- $1,731 Nov. 30, 2002 -- $1,731 Mar. 31, 2003 -- $1,730
- ------------------------------------------------------------------------------------------------------
Putnam
Putnam New York Tax Putnam Tax Exempt U.S. Government
Exempt Income Fund Income Fund Income Trust
- ------------------------------------------------------------------------------------------------------
Audit Nov. 30, 2003 -- $32,300 Sept. 30, 2003 -- $30,900 Sept. 30, 2003 -- $30,100
Fees Nov. 30, 2002 -- $30,500 Sept. 30, 2002 -- $29,200 Sept. 30, 2002 -- $28,150
- ------------------------------------------------------------------------------------------------------
Audit-Related Nov. 30, 2003 -- $0 Sept. 30, 2003 -- $0 Sept. 30, 2003 -- $0
Fees Nov. 30, 2002 -- $0 Sept. 30, 2002 -- $0 Sept. 30, 2002 -- $0
- ------------------------------------------------------------------------------------------------------
Tax Nov. 30, 2003 -- $3,600 Sept. 30, 2003 -- $3,600 Sept. 30, 2003 -- $2,800
Fees Nov. 30, 2002 -- $3,400 Sept. 30, 2002 -- $3,400 Sept. 30, 2002 -- $2,650
- ------------------------------------------------------------------------------------------------------
All Other Nov. 30, 2003 -- $0 Sept. 30, 2003 -- $0 Sept. 30, 2003 -- $0
Fees Nov. 30, 2002 -- $1,731 Sept. 30, 2002 -- $1,731 Sept. 30, 2002 -- $1,731
- ------------------------------------------------------------------------------------------------------
As of the date of this proxy statement, Putnam Floating Rate Income Fund
and Putnam Prime Money Market Fund had not completed a full fiscal year
of operations.
Audit Fees represents 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 auditors,
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, fund expense processing
and interfund trading.
The following tables present the amounts the independent auditors 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:
PricewaterhouseCoopers LLP:
Putnam
Putnam American Putnam Global Massachusetts Tax
Government Income Fund Income Trust Exempt Income Fund
- ------------------------------------------------------------------------------------------------------
Non- Sept. 30, 2003 -- $77,211 Oct. 31, 2003 -- $110,614 May 31, 2004 -- $136,521
Audit Fees Sept. 30, 2002 -- $3,497 Oct. 31, 2002 -- $7,005 May 31, 2003 -- $59,490
- ------------------------------------------------------------------------------------------------------
Putnam Michigan Tax Putnam Minnesota Tax Putnam Money
Exempt Income Fund Exempt Income Fund Market Fund
- ------------------------------------------------------------------------------------------------------
Non- May 31, 2004 -- $136,445 May 31, 2004 -- $136,439 Sept. 30, 2003 -- $77,354
Audit Fees May 31, 2003 -- $59,458 May 31, 2003 -- $59,458 Sept. 30, 2002 -- $4,445
- ------------------------------------------------------------------------------------------------------
Putnam New Jersey Tax Putnam Ohio Tax Putnam Pennsylvania Tax
Exempt Income Fund Exempt Income Fund Exempt Income Fund
- ------------------------------------------------------------------------------------------------------
Non- May 31, 2004 -- $136,475 May 31, 2004 -- $136,462 May 31, 2004 -- $136,467
Audit Fees May 31, 2003 -- $59,475 May 31, 2003 -- $59,464 May 31, 2003 -- $59,472
- ------------------------------------------------------------------------------------------------------
Putnam Tax Exempt Putnam Tax-Free Putnam Tax-Free
Money Market Fund High Yield Fund Insured Fund
- ------------------------------------------------------------------------------------------------------
Non- Sept. 30, 2003 -- $75,622 July 31, 2003 -- $79,298 July 31, 2003 -- $79,193
Audit Fees Sept. 30, 2002 -- $1,963 July 31, 2002 -- $19,893 July 31, 2002 -- $19,715
- ------------------------------------------------------------------------------------------------------
KPMG LLP:
Putnam Arizona Tax Putnam California Tax Putnam Diversified
Exempt Income Fund Exempt Income Fund Income Trust
- ------------------------------------------------------------------------------------------------------
Non- May 31, 2004 -- $3,625 Sept. 30, 2003 -- $3,600 Sept. 30, 2003 -- $3,600
Audit Fees May 31, 2003 -- $5,131 Sept. 30, 2002 -- $5,131 Sept. 30, 2002 -- $5,131
- ------------------------------------------------------------------------------------------------------
Putnam Florida Tax Putnam High Yield Putnam High Yield
Exempt Income Fund Trust Advantage Fund
- ------------------------------------------------------------------------------------------------------
Non- May 31, 2004 -- $3,648 Aug. 31, 2003 -- $3,600 Nov. 30, 2003 -- $3,300
Audit Fees May 31, 2003 -- $5,131 Aug. 31, 2002 -- $5,131 Nov. 30, 2002 -- $4,831
- ------------------------------------------------------------------------------------------------------
Putnam Intermediate
Putnam U.S. Government Putnam Municipal
Income Fund Income Fund Income Fund
- ------------------------------------------------------------------------------------------------------
Non- Oct. 31, 2003 -- $3,600 Nov. 30, 2003 -- $3,300 March 31, 2004 -- $3,788
Audit Fees Oct. 31, 2002 -- $5,131 Nov. 30, 2002 -- $4,831 March 31, 2003 -- $5,130
- ------------------------------------------------------------------------------------------------------
Putnam New York Tax Putnam Tax Exempt Putnam U.S. Government
Exempt Income Fund Income Fund Income Trust
- ------------------------------------------------------------------------------------------------------
Non- Nov. 30, 2003 -- $3,600 Sept. 30, 2003 -- $3,600 Sept. 30, 2003 -- $2,800
Audit Fees Nov. 30, 2002 -- $5,131 Sept.30, 2002 -- $5,131 Sept. 30, 2002 - $4,381
- ------------------------------------------------------------------------------------------------------
As of the date of this proxy statement, Putnam Floating Rate Income Fund
and Putnam Prime Money Market Fund had not completed a full fiscal year
of operations.
Pre-Approval Policies of the Audit and Pricing Committee. The Audit and
Pricing Committee 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, such 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 Business experience
Office with the fund to 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
- -------------------------------------------------------------------------------
Jonathan S. Horwitz (6/4/55)* 2004 Managing Director,
Senior Vice President and Treasurer Putnam Investments
- -------------------------------------------------------------------------------
Steven D. Krichmar (6/27/58) 2002 Senior Managing Director,
Vice President and Principal Putnam Investments.
Financial Officer Prior to 2001, Mr. Krichmar
was a Partner at
PricewaterhouseCoopers, LLP
- -------------------------------------------------------------------------------
Michael T. Healy (1/24/58) 2000 Managing Director,
Assistant Treasurer and Putnam Investments
Principal Accounting Officer
- -------------------------------------------------------------------------------
Beth S. Mazor (4/6/58) 2002 Senior Vice President,
Vice President Putnam Investments
- -------------------------------------------------------------------------------
Daniel T. Gallagher (2/27/62)* 2004 Vice President, Putnam
Vice President & 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,
Vice President and Putnam Investments
BSA Compliance Officer
- -------------------------------------------------------------------------------
Francis J. McNamara (8/19/55) 2004 Senior Managing Director,
Vice President & Putnam Investments, Putnam
Chief Legal Officer 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
- -------------------------------------------------------------------------------
* Officers of each fund who are members of the Trustees' independent
administrative staff. Compensation for these officers is fixed by the
Trustees and reimbursed by Putnam Management.
Shares outstanding of your fund as of June 30, 2004*
Putnam Putnam Putnam Putnam Putnam Putnam
American Arizona California Diversified Florida Global
Government Tax Exempt Tax Exempt Income Tax Exempt Income
Class Income Fund Income Fund Income Fund Trust Income Trust
- -----------------------------------------------------------------------------------------------------------------------------
Class A shares 106,841,863.856 9,827,565.558 253,922,993.043 133,964,637.803 17,679,589.020 8,282,918.384
- -----------------------------------------------------------------------------------------------------------------------------
Class B shares 12,148,059.834 2,026,206.709 30,591,828.236 55,052,441.304 3,747,962.890 2,465,018.490
- -----------------------------------------------------------------------------------------------------------------------------
Class C shares 749,470.509 -- 2,900,481.735 29,543,631.823 -- 143,164.078
- -----------------------------------------------------------------------------------------------------------------------------
Class M shares 436,400.629 139,438.000 821,452.105 343,895,680.305 80,341.478 2,545,506.934
- -----------------------------------------------------------------------------------------------------------------------------
Class R shares 116.666 -- -- 490.017 -- 84.275
- -----------------------------------------------------------------------------------------------------------------------------
Class Y shares 1,728,390.760 -- -- 2,387,517.350 -- --
- -----------------------------------------------------------------------------------------------------------------------------
Putnam Putnam Putnam Putnam Putnam
High Yield High Putnam Intermediate Massachusetts Michigan
Advantage Yield Income U.S. Government Tax Exempt Tax Exempt
Class Fund Trust Fund Fund Income Fund Income Fund
- -----------------------------------------------------------------------------------------------------------------------------
Class A shares 80,518,695.878 244,665,944.062 148,769,401.848 70,457,332.575 28,572,166.753 12,952,658.852
- -----------------------------------------------------------------------------------------------------------------------------
Class B shares 24,765,520.529 87,433,438.251 52,369,555.113 41,056,642.554 9,222,983.012 3,554,759.659
- -----------------------------------------------------------------------------------------------------------------------------
Class C shares -- 7,987,882.094 4,515,099.500 3,902,406.643 111,879.026 --
- -----------------------------------------------------------------------------------------------------------------------------
Class M shares 98,076,345.774 3,340,206.114 92,369,504.161 1,906,767.762 520,136.072 157,929.305
- -----------------------------------------------------------------------------------------------------------------------------
Class R shares -- 8,164.692 578,400.000 7,643,601.000 -- --
- -----------------------------------------------------------------------------------------------------------------------------
Class Y shares 3,866,803.244 31,128,686.821 119,309,994.474 32,839,747.040 -- --
- -----------------------------------------------------------------------------------------------------------------------------
Putnam Putnam Putnam
Putnam Putnam Putnam New Jersey New York Ohio
Minnesota Money Municipal Tax Exempt Tax Exempt Tax Exempt
Tax Exempt Market Income Income Income Income
Class Fund Fund Fund Fund Fund Fund
- -----------------------------------------------------------------------------------------------------------------------------
Class A shares 11,105,098.794 3,731,454,647.020 74,274,863.117 18,972,902.650 140,948,671.932 17,035,313.695
- -----------------------------------------------------------------------------------------------------------------------------
Class B shares 3,763,461.983 582,955,633.690 14,858,497.617 8,250,459.382 14,237,539.582 3,642,849.703
- -----------------------------------------------------------------------------------------------------------------------------
Class C shares -- 47,349,668.100 1,470,215.772 -- 1,101,028.038 --
- -----------------------------------------------------------------------------------------------------------------------------
Class M shares 118,839.008 55,756,324.380 930,981.971 166,164.978 375,001.056 97,367.224
- -----------------------------------------------------------------------------------------------------------------------------
Class R shares -- 30,997.900 -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Class T shares -- 112,117,207.020 -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Class Y shares -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Putnam
Pennsylvania Putnam Putnam Putnam Putnam Putnam
Tax Exempt Tax Exempt Tax Exempt Tax-Free Tax-Free U.S. Government
Income Income Money Market High Yield Insured Income
Class Fund Fund Fund Fund Fund Trust
- -----------------------------------------------------------------------------------------------------------------------------
Class A shares 17,025,346.788 151,482,334.487 128,275,266.190 64,583,318.628 19,435,922.343 113,039,358.877
- -----------------------------------------------------------------------------------------------------------------------------
Class B shares 5,601,722.403 8,641,174.999 -- 14,678,451.562 7,576,789.721 24,728,513.513
- -----------------------------------------------------------------------------------------------------------------------------
Class C shares -- 1,115,022.462 -- 853,208.487 686,191.234 2,255,748.990
- -----------------------------------------------------------------------------------------------------------------------------
Class M shares 250,526.293 783,560.696 -- 559,313.369 77,183.848 4,040,910.427
- -----------------------------------------------------------------------------------------------------------------------------
Class R shares -- -- -- -- -- 106.329
- -----------------------------------------------------------------------------------------------------------------------------
Class Y shares -- -- -- -- -- 2,058,258.656
- -----------------------------------------------------------------------------------------------------------------------------
Putnam
Prime
Money
Market
Class Fund
- -----------------------------------
Class A shares 1,001.110
- -----------------------------------
Class B shares --
- -----------------------------------
Class C shares --
- -----------------------------------
Class I shares 1,001.530
- -----------------------------------
Class M shares --
- -----------------------------------
Class P shares 3,721,397,996.000
- -----------------------------------
Class S shares 1,001.180
- -----------------------------------
Class R shares 1,000.800
- -----------------------------------
Class Y shares --
- -----------------------------------
* Putnam Floating Rate Income Fund commenced operations after June 30, 2004.
As of June 30, 2004, to the knowledge of the fund, only the following
persons owned of record or beneficially 5% or more of any class of
shares of any 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%)
- --------------------------------------------------------------------------------------------
Putnam Putnam Putnam
American Arizona Tax California Tax
Government Exempt Exempt
Class Income Fund Income Fund Income Fund
- --------------------------------------------------------------------------------------------
M Putnam Fiduciary Edward D. Jones & Co Edward D. Jones & Co
Trust Co TTEE 201 Progress Pkwy 201 Progress Pkwy
Burch West, Inc. Maryland Heights, MO Maryland Heights, MO
Attn: Retail 401(k) 63043-3003 63043-3003
Admin B-5-A (23.30%) (24.70%)
PO Box 9747
Providence, RI
02940-9747
(5.71%)
Professional Insurance L & F Investments, Ltd.William L Rosenberg
Services 4121 North 64th Place 3875 Vista Linda Dr.
1221 Kestrel Ct. Scottsdale, AZ Encino, CA
Waukesha, WI 85251-3109 91316-4455
53189-7776 (21.60%) (7.40%)
(10.90%)
Harold Azmelian LPL Financial Services
Philip Arpiarian & 9785 Towne
Armen Kalbian TTEE Center Drive
Holy Cross Church San Diego, CA
Endowment Trust 92121-1968
104 Highpoint Ave. (19.80%)
Weehawken, NJ
07086-5603
(5.20%)
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 Putnam
Diversified Florida Tax Global
Income Exempt Income
Class Trust Income Fund Trust
- --------------------------------------------------------------------------------------------
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 Merrill, Lynch, Pierce,
Securities Co., Ltd. Fenner & Smith
7-12 Kabuto- 4800 Dear Lake Dr. E
Cho Nihonbashi Jacksonville, FL
Chuo-Ku 32246-6484
Tokyo 103 Japan (8.70%)
(84.70%)
Citigroup Global
Markets Inc.
333 W 34th St. FL 3
New York, NY
10001-2402
(5.10%)
- --------------------------------------------------------------------------------------------
Putnam Putnam Putnam
Diversified Florida Tax Global
Income Exempt Income
Class Trust Income Fund Trust
- --------------------------------------------------------------------------------------------
M SMBC Friend Edward D. Jones & Co Tsubasa Securities
Securities Co., Ltd. Maryland Heights, MO Co., LTD
Cho Nihonbashi 201 Progress Pkwy 4-2 Marunouchi
Chuo-Ku Maryland Heights, MO 3-Chome
Tokyo 103 Japan 63043-3003 Chiyoda-Ku
(99.10%) (11.40%) Tokyo, Japan
(95.90%)
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
1801 Oakwood Ct.
Venice, FL
34293-2035
(7.30%)
Paul S Dixon
79 Royal Oak Drive
Vero Beach, FL
32962-3081
(7.30%)
Steven D. Davis
759 Nightingale Dr.
Indialantic, FL
32903-4747
(6.70%)
Legg Mason Wood
Walker Inc.
PO Box 1476
Baltimore, MD
2120200.00%
(6.90%)
- --------------------------------------------------------------------------------------------
Putnam Putnam Putnam
Diversified Florida Tax Global
Income Exempt Income
Class Trust Income Fund Trust
- --------------------------------------------------------------------------------------------
R Putnam Investments LLC* Putnam Investments
(21.40%) LLC*
(100.00%)
Vito Spinosa
Cheryl Spinosa TTEES
Barclay Contracting Co.
U/A Dtd 8/12/2000
PO Box 1871
Allentown, PA
18105-1871
(71.30%)
MCB Trust Services
700 17th St. STE 300
Denver, CO
80202-3531
(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
High Yield Putnam Putnam
Advantage High Yield Income
Class Fund Trust Fund
- --------------------------------------------------------------------------------------------
A Edward D. Jones & Co. Edward D. Jones & Co. Edward D. Jones & Co.
201 Progress Pkwy 201 Progress Pkwy 201 Progress Pkwy
Maryland Heights, MO Maryland Heights, MO Maryland Heights, MO
63043-3003 63043-3003 63043-3003
(13.50%) (20.70%) (12.50%)
Citibank, NA
390 Greenwich Street
New York, NY
10013-2375
(7.40%)
- --------------------------------------------------------------------------------------------
B Edward D. Jones & Co. Edward D. Jones & Co. Edward D. Jones & Co.
201 Progress Pkwy 201 Progress Pkwy 201 Progress Pkwy
Maryland Heights, MO Maryland Heights, MO Maryland Heights, MO
63043-3003 63043-3003 63043-3003
(7.30%) (9.90%) (5.80%)
Citigroup Global
Markets Inc.
333 W 34th St. FL 3
New York, NY
10001-2402
(6.90%)
- --------------------------------------------------------------------------------------------
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
32246-6384 (7.30%)
(7.30%)
Citigroup Global
Markets Inc.
333 W 34th St. FL 3
New York, NY
10001-2402
(5.40%)
- --------------------------------------------------------------------------------------------
M Mitsubishi Securities Edward D. Jones & Co Mizuho Investors
Co. LTD 201 Progress Pkwy Securities Co., Ltd
Tokyo-Sumitomo Maryland Heights, MO Attn: General Manager
Twin Bldg East 63043-3003 Investment Trust
27 1 Shinkawa 2 100-8350 Department
Chome Chou Ku (13.60%) Shibusawa City Place A.
Tokyo Japan 104 13-16, Nihonbashi-
(97.50%) Kayaba-cho 1-chome
Chuo-ku,
Tokyo 104, Japan
(96.30%)
- --------------------------------------------------------------------------------------------
Putnam
High Yield Putnam Putnam
Advantage High Yield Income
Class Fund Trust Fund
- --------------------------------------------------------------------------------------------
R A.G. Edwards & Putnam Investments
Sons Inc. LLC*
1 N. Jefferson Ave. (27.10%)
St. Louis, MO
63103-2205
(76.90%)
MCB Trust Services National Quality
Cust. FBO Review Inc TTEE
(20.80%) National Quality
Review Inc.
FBO Janet Stawasz
7 Steven Drive
South Hadley, MA
01075-1317
(31.50%)
MCB Trust Services
700 17th St. STE 300
Denver, CO
80202-3531
(41.00%)
- --------------------------------------------------------------------------------------------
Y Putnam Investments Ohio Tuition Trust
LLC** Authority/College
(16.96%) Advantage Program***
(35.50%)
Raymond James Ohio Tuition Trust
Financial, Inc. Authority/College
Star Plan Trust** Advantage
(7.14%) Program***
(8.90%)
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
Intermediate U.S. Massachusetts Michigan
Government Tax Exempt Tax Exempt
Class Income Fund Income Fund Income Fund
- --------------------------------------------------------------------------------------------
A Annuity Fund of Edward D. Jones & Co.
Local 164 IBEW** 201 Progress Pkwy
(18.80%) Maryland Heights, MO
63043-3003
(19.70%)
- --------------------------------------------------------------------------------------------
B 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
(7.90%) (7.20%)
- --------------------------------------------------------------------------------------------
C Citigroup Global US Clearing Corp
Markets Inc. 26 Broadway
333 W 34th St. FL 3 New York, NY
New York, NY 10004-1798
10001-2402 (33.20%)
(5.60%)
Robert C Osheas &
Elizabeth F Oshea
JTWROS
PO Box 719
Dennis, MA
02638-0719
(25.50%)
Joan A Fitzgerald
Elaine Greene
JTWROS TOD
Walter D Fitzgerald, III
Subject to
STA TOD Rules
40 Rockingham Ave,
Apt 214
West Roxbury, MA
02132-4523
(24.40%)
Fiserv Securities, Inc.
Attn. Mutual Funds
One Commerce Square
2005 Market Street,
Suite 1200
Philadelphia, PA
19103-7008
(9.40%)
- --------------------------------------------------------------------------------------------
Putnam Putnam Putnam
Intermediate U.S. Massachusetts Michigan
Government Tax Exempt Tax Exempt
Class Income Fund Income Fund Income Fund
- --------------------------------------------------------------------------------------------
M Merrill, Lynch, Pierce,Edward D. Jones & Co.
Fenner & Smith Inc. 201 Progress Pkwy
4800 Deer Lake Dr. E Maryland Heights, MO
Jacksonville, FL 32246 63043-3003
(8.00%) (15.10%)
UBS Financial A.G Edwards &
Services, Inc. Sons Inc.
P.O. Box 3321 1 N. Jefferson Ave.
Weehawken, NJ St. Louis, MO
07086-8154 63103-2205
(13.80%) (30.30%)
Leonard Joiner Frank R. Farkas
150 Hampshire Road 1832 Ada Avenue
Methuen, MA Muskegon, MI
01844-11171 49492-4206
(7.50%) (13.00%)
Andrea Matoes Pauline B. Pickford
238 Plymouth Ave. 64 Pleasant St.
E Wareham, MA Oxford, MI
02538-1185 48371-4648
(5.30%) (9.00%)
First Clearing UBS Financial
Corporation Services, Inc.
The Barbara B Dickey P.O. Box 3321
Family Trust Weehawken, NJ
Barbara B Dickey TTEE 07086-8154
60 Daley Terrace, (8.60%)
Apt 26
Orleans, MA 02653
(5.30%)
- --------------------------------------------------------------------------------------------
R MCB Trust Services
700 17th St. STE 300
Denver, CO
80202-3531
(97.30%)
- --------------------------------------------------------------------------------------------
Y Electrical Contractors
Association and
Local Union 134,
IBEW Joint Pension
Trust of Chicago**
(93.37%)
- --------------------------------------------------------------------------------------------
Putnam Putnam Putnam
Minnesota Money Municipal
Tax Exempt Market Income
Class Income Fund Fund 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
(23.80%) (17.20%)
- --------------------------------------------------------------------------------------------
B Edward D. Jones & Co. Edward D. Jones & Co.
201 Progress Pkwy 201 Progress Pkwy
Maryland Heights, MO Maryland Heights, MO
63043-3003 63043-3003
(6.00%) (7.10%)
Merrill, Lynch, Pierce,
Fenner & Smith Inc.
4800 Deer Lake Dr. E
Jacksonville, FL 32246
(5.60%)
- --------------------------------------------------------------------------------------------
C Citigroup Global
Markets Inc.
333 W 34th St. FL 3
New York, NY
10001-2402
(6.40%)
- --------------------------------------------------------------------------------------------
M Pershing, LLC Edward D. Jones & Co.
P.O. Box 2052 201 Progress Pkwy
Jersey City, NJ Maryland Heights, MO
07303-2052 63043-3003
(19.00%) (20.00%)
Louise C. Larson Citigroup Global
8106 Highwood Drive Markets Inc.
Apt. Y116 333 W 34th St. FL 3
Bloomington, MN New York, NY
55438-3042 10001-2402
(13.20%) (6.20%)
Gertrude L Pershing, LLC
Palubicki Tod P.O. Box 2052
Kennedri A. Gustin Jersey City, NJ
Subject to Sta Tod Rules 07303-2052
576 E 2nd St (6.40%)
Winona, MN
55987-4217
(8.20%)
UBS Financial Peggy L Seaman TTEE
Services, Inc. Peggy L Seaman Trust
P.O. Box 3321 U/A Dtd 11/19/1997
Weehawken, NJ 11833 Bailey Dr. NE
07086-8154 Lowell, MI
(7.90%) 49331-9481
(5.80%)
- --------------------------------------------------------------------------------------------
Putnam Putnam Putnam
Minnesota Money Municipal
Tax Exempt Market Income
Class Income Fund Fund Fund
- --------------------------------------------------------------------------------------------
M (cont.) LPL Financial Services LPL Financial Services
9785 Towne 9785 Towne
Center Drive Center Drive
San Diego, CA San Diego, CA
92121-1968 92121-1968
(5.10%) (5.00%)
Southwest Securities Inc.
PO Box 509002
Dallas, TX
75250-9002
(5.10%)
- --------------------------------------------------------------------------------------------
R MCB Trust Services
700 17th St. Suite 300
Denver, CO
80202-3531
(58.20%)
National Quality
Review Inc.
7 Steven Drive
South Hadley, MA
01075-1317
(28.80%)
- --------------------------------------------------------------------------------------------
T Pershing LLC
P.O. Box 2052
Jersey City, NJ
07303-2052
(90.30%)
- --------------------------------------------------------------------------------------------
Putnam Putnam Putnam
New Jersey New York Ohio
Tax Exempt Tax Exempt Tax Exempt
Class Income Fund Income Fund Income Fund
- --------------------------------------------------------------------------------------------
A Citigroup Global Merrill, Lynch, Pierce,Edward D. Jones & Co.
Markets Inc. Fenner & Smith Inc. 201 Progress Pkwy
333 W 34th St. FL 3 4800 Deer Lake Dr. E Maryland Heights, MO
New York, NY Jacksonville, FL 32246 63043-3003
10001-2402 (9.00%) (20.80%)
(7.70%)
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
(6.40%) 10001-2402
(7.20%)
- --------------------------------------------------------------------------------------------
B Citigroup Global Merrill, Lynch, Pierce,Merrill, Lynch, Pierce,
Markets Inc. Fenner & Smith Inc. Fenner & Smith Inc.
333 W 34th St. FL 3 4800 Deer Lake Dr. E 4800 Deer Lake Dr. E
New York, NY Jacksonville, FL 32246 Jacksonville, FL 32246
10001-2402 (8.80%) (12.20%)
(7.90%)
Citigroup Global
Markets Inc.
333 W 34th St. FL 3
New York, NY
10001-2402
(9.10%)
- --------------------------------------------------------------------------------------------
C Citigroup Global
Markets Inc.
333 W 34th St. FL 3
New York, NY
10001-2402
(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%)
- --------------------------------------------------------------------------------------------
Putnam Putnam Putnam
New Jersey New York Ohio
Tax Exempt Tax Exempt Tax Exempt
Class Income Fund Income Fund Income Fund
- --------------------------------------------------------------------------------------------
M Marie Franklin March* Pershing, LLC Edward D. Jones & Co.
(38.00%) P.O. Box 2052 201 Progress Pkwy
Jersey City, NJ Maryland Heights, MO
07303-2052 63043-3003
(22.40%) (33.50%)
Merrill, Lynch, Pierce,Concetta Lacorte Pershing, LLC
Fenner & Smith Inc. 9005 165th Avenue P.O. Box 2052
4800 Deer Lake Dr. E Jacksonville, FL 32246 Jersey City, NJ
Howard Beach, NY (11.70%) 07303-2052
1141400.00% (10.20%)
(10.70%)
US Clearing Corp Edward D. Jones & Co. Merrill, Lynch, Pierce,
26 Broadway 201 Progress Pkwy Fenner & Smith Inc.
New York, NY Maryland Heights, MO 4800 Deer Lake Dr. E
10004-1798 63043-3003 Jacksonville, FL 32246
(9.10%) (9.10%) (7.50%)
Leonard Cavaliere Albert Detiberiis Wexford Clearing
21 King George Road 8905 103rd Avenue Services
Warren, NJ Ozone Park, NY One New York Plaza
07059-7014 11417-1358 New York, NY 10292
(7.50%) (6.80%) (6.60%)
Josiah H. Compton & Ray R. Jeffery &
Alice E. Compton Dorothy C. Jeffery
Ten In Comm JTWROS
23 Jefferson CT W Woodcox Street
Bridgewater, NJ PO Box 291
08807-3050 Antwerp, OH
(5.20%) 45813-0291
(5.50%)
Raymond James &
Assoc Inc.
880 Carillon Pkwy
St Petersburg, FL
33716-1102
(5.40%)
- --------------------------------------------------------------------------------------------
Putnam Putnam Putnam
Pennsylvania Tax Exempt Tax Exempt
Tax Exempt Income Money Market
Class Income Fund Fund Fund
- --------------------------------------------------------------------------------------------
A Edward D. Jones & Co. John A. Hill
201 Progress Pkwy 33 Avon Rd.
Maryland Heights, MO Bronxville, NY
63043-3003 10708-1601
(22.40%) (8.40%)
(10,797,890.460
shares)
- --------------------------------------------------------------------------------------------
B Merrill, Lynch, Pierce,Edward D. Jones & Co.
Fenner & Smith Inc. 201 Progress Pkwy
4800 Deer Lake Dr. E Maryland Heights, MO
Jacksonville, FL 32246 63043-3003
(5.20%) (8.10%)
Merrill, Lynch, Pierce,
Fenner & Smith Inc.
4800 Deer Lake Dr. E
Jacksonville, FL 32246
(6.60%)
- --------------------------------------------------------------------------------------------
C Primevest Financial
Services
400 First Street South,
Suite 300
PO Box 283
St Cloud, MN 56302
(8.70%)
Citigroup Global
Markets Inc.
333 W 34th St. FL 3
New York, NY
10001-2402
(5.60%)
- --------------------------------------------------------------------------------------------
Putnam Putnam Putnam
Pennsylvania Tax Exempt Tax Exempt
Tax Exempt Income Money Market
Class Income Fund Fund Fund
- --------------------------------------------------------------------------------------------
M John J. Handley Edward D. Jones & Co.
P.O. Box 294-4 201 Progress Pkwy
Dallas, PA 18612-9454 Maryland Heights, MO
(17.00%) 63043-3003
(33.10%)
J.J.B. Hilliard LPL Financial Services
W. L. Lyons, Inc. 9785 Towne
Jill F Willcox Centre Drive
501 South 4th Street San Diego, CA
Louisville, KY 40202 92121-1968
(10.30%) (6.00%)
Lawrence A. D'Angelo Deborah B. Burris
906 General 417 Kings Hwy
Howe Drive Milford, DE
West Chester, PA 19382-7106
19963-1763 (5.70%)
(8.80%)
Grace R. Scalzo
59 High Street
Pittston, PA 18640
(7.50%)
UBS Financial
Services, Inc.
P.O. Box 3321
Weehawken, NJ
07086-8154
(7.40%)
A G Edwards & Sons Inc.
1 N Jefferson Ave.
St Louis, MO
63103-2205
(5.10%)
- --------------------------------------------------------------------------------------------
Putnam Putnam Putnam
Tax-Free Tax-Free U.S. Government
High Yield Insured Income
Class Fund Fund Trust
- --------------------------------------------------------------------------------------------
A Edward D. Jones & Co. Edward D. Jones & Co. Edward D. Jones & Co.
201 Progress Pkwy 201 Progress Pkwy 201 Progress Pkwy
Maryland Heights, MO Maryland Heights, MO Maryland Heights, MO
63043-3003 63043-3003 63043-3003
(16.10%) (13.40%) (5.20%)
Citigroup Global
Markets Inc.
333 W 34th St. FL 3
New York, NY
10001-2402
(5.10%)
- --------------------------------------------------------------------------------------------
B Edward D. Jones & Co. Edward D. Jones & Co.
201 Progress Pkwy 201 Progress Pkwy
Maryland Heights, MO Maryland Heights, MO
63043-3003 63043-3003
(10.50%) (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
(9.00%) 10001-2402
(6.80%)
Merrill, Lynch, Pierce,
Fenner & Smith Inc.
4800 Deer Lake Dr. E
Jacksonville, FL 32246
(7.10%)
- --------------------------------------------------------------------------------------------
C Merrill, Lynch, Pierce,Merrill, Lynch, Pierce,Merrill, Lynch, Pierce,
Fenner & Smith Inc. Fenner & Smith Inc. Fenner & Smith Inc.
4800 Deer Lake Dr. E 4800 Deer Lake Dr. E 4800 Deer Lake Dr. E
Jacksonville, FL 32246 Jacksonville, FL 32246 Jacksonville, FL 32246
(17.50%) (6.80%) (9.30%)
Citigroup Global Citigroup Global Citigroup Global
Markets Inc. Markets Inc. Markets Inc.
333 W 34th St. FL 3 333 W 34th St. FL 3 333 W 34th St. FL 3
New York, NY New York, NY New York, NY
10001-2402 10001-2402 10001-2402
(8.30%) (5.10%) (7.90%)
J.J.B. Hilliard, W.L.
Lyons, Inc.
P.O. Box 32760
Louisville, KY
40232-2760
(9.70%)
- --------------------------------------------------------------------------------------------
Putnam Putnam Putnam
Tax-Free Tax-Free U.S. Government
High Yield Insured Income
Class Fund Fund Trust
- --------------------------------------------------------------------------------------------
C (cont.) Ruth G. Doffing,
Trustee
863 Bahls Drive
Gastings, MN 55033
(7.70%)
Wells Fargo
Investments LLC
608 Second Avenue
South, 8th Floor
Minneapolis, MN
5540200.00%
(5.20%)
- --------------------------------------------------------------------------------------------
M Edward D. Jones & Co. Edward D. Jones & Co. Mitsubishi Securities
201 Progress Pkwy 201 Progress Pkwy Co. Ltd
Maryland Heights, MO Maryland Heights, MO 5-2, Marunouchi
63043-3003 63043-3003 2-chome,
(23.40%) (28.60%) Chiyoda-ku, Tokyo
100-0005 Japan
(79.00%)
Pershing, LLC
P.O. Box 2052
Jersey City, NJ
07303-2052
(20.70%)
Joan M Novak &
Eugene S. Novak
JTWROS
2091 E Parkview Circle
Hoffman Est, IL
60195-2644
(5.70%)
- --------------------------------------------------------------------------------------------
R Putnam Investment
LLC*
(73.10%)
Donald K Merrigan
1927 Saucon Lane
Bethlehem, PA
18015-5242
(19.00%)
MCB Trust Services
700 17th St. STE 300
Denver, CO
80202-3531
(6.00%)
- --------------------------------------------------------------------------------------------
Putnam Putnam Putnam
Tax-Free Tax-Free U.S. Government
High Yield Insured Income
Class Fund Fund Trust
- --------------------------------------------------------------------------------------------
Y NYSEG Corp.
Savings Plan**
(39.97%)
Illinois Tool
Works, Inc.**
(25.82%)
Putnam Investments
LLC**
(8.14%)
- --------------------------------------------------------------------------------------------
Putnam
Prime
Money Market
Class Fund
- --------------------------------------------------------------------------------------------
A Putnam Investments LLC*
(100.00%)
- --------------------------------------------------------------------------------------------
I Putnam Investments LLC*
(100.00%)
- --------------------------------------------------------------------------------------------
P Putnam Diversified
Income Trust*
(14.50%)
The George Putnam
Fund of Boston*
(11.40%)
Putnam Income Fund*
(9.00%)
Putnam Asset Allocation:
Balanced Portfolio*
(5.80%)
Putnam Voyager Fund*
(5.60%)
- --------------------------------------------------------------------------------------------
R Putnam Investments LLC*
(100.00%)
- --------------------------------------------------------------------------------------------
S Putnam Investments LLC*
(100.00%)
- --------------------------------------------------------------------------------------------
* The address for the name listed is: c/o Putnam Investments, One Post
Office Square, Boston, MA 02109.
** 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 Advantage Fund
Putnam High Yield Trust
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 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 cost) 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 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 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 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
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."
Putnam Municipal Income Fund
"The fund may not. . . [w]ith respect to 75% of its total assets, invest
in securities of any issuer if, immediately after such investment, more
than 5% of the total assets of the fund (taken at current value) would
be invested in the securities of such issuer; provided that this
limitation does not apply to obligations issued or guaranteed as to
interest and principal by the U.S. government or its agencies or
instrumentalities."
Putnam Arizona Tax Exempt Income Fund
Putnam Florida Tax Exempt Income Fund
Putnam Global Income Trust
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 agencies or
instrumentalities."
EXHIBIT D
Current Provisions of Agreements and Declarations of Trust of the Funds
with Respect to Redemption of 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
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
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
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
36 of the 1940 Act, 206 of the Investment Advisers Act of 1940, as
amended (the "Advisers Act"), 10(b) and 20(a) of the 1934 Act,
breach of fiduciary duty and civil conspiracy. The plaintiff seeks
declaratory relief, damages pre and post judgment interest and
attorney's fees and costs.
Case Name Defendants Court Date Instituted
- ---------------------------------------------------------------------------------------------------------
Gladys Baker (derivatively Putnam Management 1 United States April 5, 2004
on behalf of The Putnam Omid Kamshad District Court
Fund for Growth and Justin Scott for the District
Income, Putnam Europe Putnam Trustees 2 of Delaware
Equity Fund, and the Putnam Funds 3
Putnam Funds) v. Putnam (nominal)
Investment Management
LLC, et al.
- ---------------------------------------------------------------------------------------------------------
2. The plaintiffs named below allege that the defendants engaged in,
permitted and/or failed to prevent market timing and short-term trading
in the Putnam Funds. Plaintiffs generally claim violations of 36 of
the 1940 Act, 206 of the Investment Advisers Act, 10(b) of the 1934
Act and Rule 10b-5, 20(a) of the 1934 Act, breach of fiduciary duty,
aiding and abetting breach of fiduciary duty and civil conspiracy. The
plaintiffs generally seek injunctive relief including removal of the
current Trustees and fund managers, disgorgement of profits, monetary
damages, punitive damages and attorney's fees and costs.
Case Name Defendants Court Date Instituted
- ---------------------------------------------------------------------------------------------------------
Joanne S. Baseman Putnam Management United States Dec. 16, 2003
(derivatively on behalf of Omid Kamshad District Court
Putnam International Justin Scott for the District
Equity Fund and the William Woolverton of Maryland
Putnam Funds) v. Putnam Putnam Trustees
Investment Management, Putnam Funds
Inc., et al. (nominal)
- ---------------------------------------------------------------------------------------------------------
John K. Clement Putnam Management United States Nov. 26, 2003
(derivatively on behalf Omid Kamshad District Court
of several individual funds Justin Scott for the District
and the Putnam Funds) William Woolverton of Maryland
v. Putnam Investment Putnam Trustees
Management Inc., et al. Putnam Funds
(nominal)
- ---------------------------------------------------------------------------------------------------------
Simon J. Denenberg Putnam Management United States Jan. 30, 2004
(derivatively on behalf of Omid Kamshad District Court
the Putnam U.S. Justin Scott or 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.
- ---------------------------------------------------------------------------------------------------------
Diane Hutto and Dina Putnam Management United States Nov. 12, 2003
Rozenbaum (derivatively on Putnam Trustees District Court
behalf of several individual Justin M. Scott for the District
funds and the Putnam Omid Kamshad of Maryland
Funds) v. Putnam, LLC, Certain officers of the
et. al. Putnam Funds and
Putnam Management
John Does 1-100
Putnam Funds
(nominal)
- ---------------------------------------------------------------------------------------------------------
Seth B. Marks (derivatively 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) v. Putnam, Omid Kamshad of Maryland
LLC, et. al. Certain officers of the
Putnam Funds and
Putnam Management
John Does 1-100
Putnam Funds
(nominal)
- ---------------------------------------------------------------------------------------------------------
Cynthia Puleo (derivatively 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) v. Putnam, Omid Kamshad of Maryland
LLC, et al. Certain officers of the
Putnam Funds and
Putnam Management
John Does 1-100
Putnam Funds
(nominal)
- ---------------------------------------------------------------------------------------------------------
Edward L. Segel (derivatively Putnam Management United States Jan. 23, 2004
on behalf of individual fund Putnam Trustees District Court
and the Putnam Funds) Omid Kamshad for the District
v. Putnam, LLC, et al. Justin Scott of Maryland
William Woolverton
Putnam Funds
(nominal)
- ---------------------------------------------------------------------------------------------------------
Zachary Alan Starr Putnam Management United States Nov. 6, 2003
(derivatively on behalf of Putnam Trustees District Court
Putnam International Omid Kamshad for the District
Equity Fund and the Justin M. Scott of Maryland
Putnam Funds) v. Putnam Putnam Funds
Investment Management, (nominal)
et al.
- ---------------------------------------------------------------------------------------------------------
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 and 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 (derivatively Putnam Trustees Superior Court March 15, 2004
on behalf of Putnam Vista Putnam Management of Suffolk County,
Fund) v. John A. Hill, et al. Putnam Vista Fund MA; Stipulation
(nominal) agreeing to
Certain officers of the removal and
Putnam Funds and transfer to
Putnam Management United States
District Court
for the District
of Maryland
executed on
April 23, 2004
- ---------------------------------------------------------------------------------------------------------
Peter Kavaler (derivatively Putnam Trustees Superior Court March 15, 2004
on behalf of Putnam Putnam Management of Suffolk County,
Income Fund) v. John A. Hill, Putnam Income Fund MA; Stipulation
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
- ---------------------------------------------------------------------------------------------------------
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. John A. Hill, et al. Fund (nominal) of Maryland
Certain officers of the
Putnam Funds and
Putnam Management
- ---------------------------------------------------------------------------------------------------------
Steven Wiegand Putnam Trustees United States Jan. 27, 2004
(derivatively on behalf of Putnam Management District Court
Putnam Classic Equity Putnam Classic Equity for the District
Fund) v. John A. Hill et al. Fund (nominal) of Maryland
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 (derivatively on behalf Putnam Funds Supreme Court Dec. 17, 2003
of Marsh & McLennan) Putnam Management of the State
v. Greenberg, et. al. Jeffrey Greenberg of New York
Mathis Cabaillavetta
Marsh Directors 4
Lawrence Lasser
- --------------------------------------------------------------------------------------------------
1 "Putnam Management" includes Putnam Investments Trust, 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.C. 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.C. Smith.
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PUTNAM INVESTMENTS
The Putnam Funds
One Post Office Square
Boston, Massachusetts 02109
Toll-free 1-800-225-1581 215939 8/04
PUTNAM INVESTMENTS
[GRAPHIC OMITTED: ezVote Logo]
Consolidated Proxy Ballot
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
Ballot, you are voting all of these accounts in the same manner as
indicated on the reverse side of the form.
PROXY FOR THE MEETING OF SHAREHOLDERS
TO BE HELD NOVEMBER 11, 2004
By signing below, you as a Putnam fund shareholder appoint Trustees John
A. Hill and Robert E. Patterson, and each of them separately, with power
of substitution to each, to be your proxies. You are empowering them to
vote your Putnam fund shares on your behalf at a meeting of the
shareholders of the Putnam funds. The meeting will take place on
November 11, 2004 at 11:00 a.m. in Boston, and may be adjourned to later
times or dates. Your vote is being solicited on behalf of the Trustees.
When you complete and sign the proxy ballot, the Trustees will vote
exactly as you have indicated on the other side of this card. If you
simply sign the proxy ballot, or don't vote on a specific proposal, your
shares will be automatically voted as the Trustees recommend. The
Trustees are also authorized to vote at their discretion on any other
matter that arises at the meeting or any adjournment of the meeting.
PLEASE BE SURE TO SIGN AND DATE HERE.
- ------------------------------------------------------------
Shareholder/Co-owner sign(s) here Date
Sign your name exactly as it appears on this card. If you own shares
jointly, each owner should sign. When signing as executor,
administrator, attorney, trustee, 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 BALLOT 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 ballot.
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 ballot
3
MAIL
Mail in the proxy card.
* Please sign and date your proxy ballot.
* Detach the ballot from this proxy form.
* Return the ballot in the postage-paid
envelope provided.
INDIVIDUAL PROXY BALLOTS
On the reverse side of this form (and on accompanying pages, if
necessary) you will find individual proxy 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 proxy ballots portion only.
NOTE: If you elect to vote each account separately, do not return the
Consolidated Proxy Ballot above.
SIGN BELOW ONLY IF YOU ARE VOTING EACH ACCOUNT SEPARATELY.
- ------------------------------------------------------------
Shareholder/Co-owner sign(s) here Date
Sign your name exactly as it appears on this card. If you own shares
jointly, each owner should sign. When signing as executor,
administrator, attorney, trustee, 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
[GRAPHIC OMITTED: ezVote Logo]
Consolidated Proxy Ballot
Please place an X in the appropriate box(es) using black or blue ink or
number 2 pencil. Please do not use a fine point pen.
The Trustees recommend voting FOR all proposals
Proposals
1 Proposal to elect all nominees for Trustees.
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
14 R.B. Worley
FOR
electing
all the
nominees
0
WITHHOLD
authority
to vote for
all nominees
0
- ------------------------------------------------------------
To withhold authority to vote for specific nominee(s), but to vote for
all other nominees, write the number(s) of the excluded nominee(s) on
the line to the left.
Proposals to approve an amendment to certain funds' fundamental
investment restrictions with respect to
FOR AGAINST ABSTAIN
2A borrowing. 0 0 0
2B making loans. 0 0 0
2C diversification of investments. 0 0 0
2D issuance of senior securities. 0 0 0
2E Proposal to approve the elimination of Putnam U.S.
government Income Trust's fundamental investment
restriction with respect to purchasing or selling options,
puts, calls straddles and spreads. 0 0 0
2F Proposal to approve an amendment to Putnam U.S.
government Income Trust's fundamental investment
restriction with respect to investments in commodities. 0 0 0
3 Proposal to approve an amendment to certain funds'
agreements and declarations of trust. 0 0 0
Refer to pages 6 and 7 in the proxy statement to determine which proposals
apply to your fund. If you have questions on the proposals, please call
1-877-832-6360.
Please sign and date the other side of this card.
Income 2 EZ - dh
DETACH CONSOLIDATED PROXY BALLOT AT PERFORATION BELOW
INDIVIDUAL PROXY BALLOTS
NOTE: IF YOU HAVE USED THE CONSOLIDATED PROXY BALLOT ABOVE, DO NOT VOTE
THE INDIVIDUAL PROXY BALLOTS BELOW.
000 0000000000 000 0
999 999 999 999 99
PUTNAM AMERICAN GOVERNMENT INCOME FUND
FOR WITHHOLD
ALL ALL
1 Election of Trustees. (refer to nominees at
top of page) 0 0
except#------------------------------
FOR AGAINST ABSTAIN
2 Investment restriction 0 0 0
A borrowing. 0 0 0
B making loans. 0 0 0
C diversification of investments. 0 0 0
D issuance of senior securities. 0 0 0
E purchasing or reselling options, puts,
calls, straddles and spreads. 0 0 0
F investments in commodities. 0 0 0
3 Declaration of trust 0 0 0
000 0000000000 000 0
999 999 999 999 99
PUTNAM ARIZONA TAX EXEMPT INCOME FUND
FOR WITHHOLD
ALL ALL
1 Election of Trustees. (refer to nominees at
top of page) 0 0
except#------------------------------
FOR AGAINST ABSTAIN
2 Investment restriction 0 0 0
A borrowing. 0 0 0
B making loans. 0 0 0
C diversification of investments. 0 0 0
D issuance of senior securities. 0 0 0
E purchasing or reselling options, puts,
calls, straddles and spreads. 0 0 0
F investments in commodities. 0 0 0
3 Declaration of trust 0 0 0
000 0000000000 000 0
999 999 999 999 99
PUTNAM CALIFORNIA TAX EXEMPT INCOME FUND
FOR WITHHOLD
ALL ALL
1 Election of Trustees. (refer to nominees at
top of page) 0 0
except#------------------------------
FOR AGAINST ABSTAIN
2 Investment restriction 0 0 0
A borrowing. 0 0 0
B making loans. 0 0 0
C diversification of investments. 0 0 0
D issuance of senior securities. 0 0 0
E purchasing or reselling options, puts,
calls, straddles and spreads. 0 0 0
F investments in commodities. 0 0 0
3 Declaration of trust 0 0 0
000 0000000000 000 0
999 999 999 999 99
PUTNAM DIVERSIFIED INCOME TRUST
FOR WITHHOLD
ALL ALL
1 Election of Trustees. (refer to nominees at
top of page) 0 0
except#------------------------------
FOR AGAINST ABSTAIN
2 Investment restriction 0 0 0
A borrowing. 0 0 0
B making loans. 0 0 0
C diversification of investments. 0 0 0
D issuance of senior securities. 0 0 0
E purchasing or reselling options, puts,
calls, straddles and spreads. 0 0 0
F investments in commodities. 0 0 0
3 Declaration of trust 0 0 0
000 0000000000 000 0
999 999 999 999 99
PUTNAM FLOATING RATE INCOME FUND
FOR WITHHOLD
ALL ALL
1 Election of Trustees. (refer to nominees at
top of page) 0 0
except#------------------------------
FOR AGAINST ABSTAIN
2 Investment restriction 0 0 0
A borrowing. 0 0 0
B making loans. 0 0 0
C diversification of investments. 0 0 0
D issuance of senior securities. 0 0 0
E purchasing or reselling options, puts,
calls, straddles and spreads. 0 0 0
F investments in commodities. 0 0 0
3 Declaration of trust 0 0 0
000 0000000000 000 0
999 999 999 999 99
PUTNAM FLORIDA TAX EXEMPT INCOME FUND
FOR WITHHOLD
ALL ALL
1 Election of Trustees. (refer to nominees at
top of page) 0 0
except#------------------------------
FOR AGAINST ABSTAIN
2 Investment restriction 0 0 0
A borrowing. 0 0 0
B making loans. 0 0 0
C diversification of investments. 0 0 0
D issuance of senior securities. 0 0 0
E purchasing or reselling options, puts,
calls, straddles and spreads. 0 0 0
F investments in commodities. 0 0 0
3 Declaration of trust 0 0 0
000 0000000000 000 0
999 999 999 999 99
PUTNAM GLOBAL INCOME TRUST
FOR WITHHOLD
ALL ALL
1 Election of Trustees. (refer to nominees at
top of page) 0 0
except#------------------------------
FOR AGAINST ABSTAIN
2 Investment restriction 0 0 0
A borrowing. 0 0 0
B making loans. 0 0 0
C diversification of investments. 0 0 0
D issuance of senior securities. 0 0 0
E purchasing or reselling options, puts,
calls, straddles and spreads. 0 0 0
F investments in commodities. 0 0 0
3 Declaration of trust 0 0 0
000 0000000000 000 0
999 999 999 999 99
PUTNAM HIGH YIELD ADVANTAGE FUND
FOR WITHHOLD
ALL ALL
1 Election of Trustees. (refer to nominees at
top of page) 0 0
except#------------------------------
FOR AGAINST ABSTAIN
2 Investment restriction 0 0 0
A borrowing. 0 0 0
B making loans. 0 0 0
C diversification of investments. 0 0 0
D issuance of senior securities. 0 0 0
E purchasing or reselling options, puts,
calls, straddles and spreads. 0 0 0
F investments in commodities. 0 0 0
3 Declaration of trust 0 0 0
000 0000000000 000 0
999 999 999 999 99
PUTNAM HIGH YIELD TRUST
FOR WITHHOLD
ALL ALL
1 Election of Trustees. (refer to nominees at
top of page) 0 0
except#------------------------------
FOR AGAINST ABSTAIN
2 Investment restriction 0 0 0
A borrowing. 0 0 0
B making loans. 0 0 0
C diversification of investments. 0 0 0
D issuance of senior securities. 0 0 0
E purchasing or reselling options, puts,
calls, straddles and spreads. 0 0 0
F investments in commodities. 0 0 0
3 Declaration of trust 0 0 0
000 0000000000 000 0
999 999 999 999 99
PUTNAM INCOME FUND
FOR WITHHOLD
ALL ALL
1 Election of Trustees. (refer to nominees at
top of page) 0 0
except#------------------------------
FOR AGAINST ABSTAIN
2 Investment restriction 0 0 0
A borrowing. 0 0 0
B making loans. 0 0 0
C diversification of investments. 0 0 0
D issuance of senior securities. 0 0 0
E purchasing or reselling options, puts,
calls, straddles and spreads. 0 0 0
F investments in commodities. 0 0 0
3 Declaration of trust 0 0 0
000 0000000000 000 0
999 999 999 999 99
PUTNAM INTERMEDIATE U.S. GOVERNMENT INCOME FUND
FOR WITHHOLD
ALL ALL
1 Election of Trustees. (refer to nominees at
top of page) 0 0
except#------------------------------
FOR AGAINST ABSTAIN
2 Investment restriction 0 0 0
A borrowing. 0 0 0
B making loans. 0 0 0
C diversification of investments. 0 0 0
D issuance of senior securities. 0 0 0
E purchasing or reselling options, puts,
calls, straddles and spreads. 0 0 0
F investments in commodities. 0 0 0
3 Declaration of trust 0 0 0
000 0000000000 000 0
999 999 999 999 99
PUTNAM MASSACHUSETTS TAX EXEMPT INCOME FUND
FOR WITHHOLD
ALL ALL
1 Election of Trustees. (refer to nominees at
top of page) 0 0
except#------------------------------
FOR AGAINST ABSTAIN
2 Investment restriction 0 0 0
A borrowing. 0 0 0
B making loans. 0 0 0
C diversification of investments. 0 0 0
D issuance of senior securities. 0 0 0
E purchasing or reselling options, puts,
calls, straddles and spreads. 0 0 0
F investments in commodities. 0 0 0
3 Declaration of trust 0 0 0
000 0000000000 000 0
999 999 999 999 99
PUTNAM MICHIGAN TAX EXEMPT INCOME FUND
FOR WITHHOLD
ALL ALL
1 Election of Trustees. (refer to nominees at
top of page) 0 0
except#------------------------------
FOR AGAINST ABSTAIN
2 Investment restriction 0 0 0
A borrowing. 0 0 0
B making loans. 0 0 0
C diversification of investments. 0 0 0
D issuance of senior securities. 0 0 0
E purchasing or reselling options, puts,
calls, straddles and spreads. 0 0 0
F investments in commodities. 0 0 0
3 Declaration of trust 0 0 0
000 0000000000 000 0
999 999 999 999 99
PUTNAM MINNESOTA TAX EXEMPT FUND
FOR WITHHOLD
ALL ALL
1 Election of Trustees. (refer to nominees at
top of page) 0 0
except#------------------------------
FOR AGAINST ABSTAIN
2 Investment restriction 0 0 0
A borrowing. 0 0 0
B making loans. 0 0 0
C diversification of investments. 0 0 0
D issuance of senior securities. 0 0 0
E purchasing or reselling options, puts,
calls, straddles and spreads. 0 0 0
F investments in commodities. 0 0 0
3 Declaration of trust 0 0 0
000 0000000000 000 0
999 999 999 999 99
PUTNAM MONEY MARKET FUND
FOR WITHHOLD
ALL ALL
1 Election of Trustees. (refer to nominees at
top of page) 0 0
except#------------------------------
FOR AGAINST ABSTAIN
2 Investment restriction 0 0 0
A borrowing. 0 0 0
B making loans. 0 0 0
C diversification of investments. 0 0 0
D issuance of senior securities. 0 0 0
E purchasing or reselling options, puts,
calls, straddles and spreads. 0 0 0
F investments in commodities. 0 0 0
3 Declaration of trust 0 0 0
000 0000000000 000 0
999 999 999 999 99
PUTNAM MUNICIPAL INCOME FUND
FOR WITHHOLD
ALL ALL
1 Election of Trustees. (refer to nominees at
top of page) 0 0
except#------------------------------
FOR AGAINST ABSTAIN
2 Investment restriction 0 0 0
A borrowing. 0 0 0
B making loans. 0 0 0
C diversification of investments. 0 0 0
D issuance of senior securities. 0 0 0
E purchasing or reselling options, puts,
calls, straddles and spreads. 0 0 0
F investments in commodities. 0 0 0
3 Declaration of trust 0 0 0
000 0000000000 000 0
999 999 999 999 99
PUTNAM NEW JERSEY TAX EXEMPT FUND
FOR WITHHOLD
ALL ALL
1 Election of Trustees. (refer to nominees at
top of page) 0 0
except#------------------------------
FOR AGAINST ABSTAIN
2 Investment restriction 0 0 0
A borrowing. 0 0 0
B making loans. 0 0 0
C diversification of investments. 0 0 0
D issuance of senior securities. 0 0 0
E purchasing or reselling options, puts,
calls, straddles and spreads. 0 0 0
F investments in commodities. 0 0 0
3 Declaration of trust 0 0 0
000 0000000000 000 0
999 999 999 999 99
PUTNAM NEW YORK TAX EXEMPT INCOME FUND
FOR WITHHOLD
ALL ALL
1 Election of Trustees. (refer to nominees at
top of page) 0 0
except#------------------------------
FOR AGAINST ABSTAIN
2 Investment restriction 0 0 0
A borrowing. 0 0 0
B making loans. 0 0 0
C diversification of investments. 0 0 0
D issuance of senior securities. 0 0 0
E purchasing or reselling options, puts,
calls, straddles and spreads. 0 0 0
F investments in commodities. 0 0 0
3 Declaration of trust 0 0 0
000 0000000000 000 0
999 999 999 999 99
PUTNAM OHIO TAX EXEMPT INCOME FUND
FOR WITHHOLD
ALL ALL
1 Election of Trustees. (refer to nominees at
top of page) 0 0
except#------------------------------
FOR AGAINST ABSTAIN
2 Investment restriction 0 0 0
A borrowing. 0 0 0
B making loans. 0 0 0
C diversification of investments. 0 0 0
D issuance of senior securities. 0 0 0
E purchasing or reselling options, puts,
calls, straddles and spreads. 0 0 0
F investments in commodities. 0 0 0
3 Declaration of trust 0 0 0
000 0000000000 000 0
999 999 999 999 99
PUTNAM PENNSYLVANIA TAX EXEMPT INCOME FUND
FOR WITHHOLD
ALL ALL
1 Election of Trustees. (refer to nominees at
top of page) 0 0
except#------------------------------
FOR AGAINST ABSTAIN
2 Investment restriction 0 0 0
A borrowing. 0 0 0
B making loans. 0 0 0
C diversification of investments. 0 0 0
D issuance of senior securities. 0 0 0
E purchasing or reselling options, puts,
calls, straddles and spreads. 0 0 0
F investments in commodities. 0 0 0
3 Declaration of trust 0 0 0
000 0000000000 000 0
999 999 999 999 99
PUTNAM PRIME MONEY MARKET FUND
FOR WITHHOLD
ALL ALL
1 Election of Trustees. (refer to nominees at
top of page) 0 0
except#------------------------------
FOR AGAINST ABSTAIN
2 Investment restriction 0 0 0
A borrowing. 0 0 0
B making loans. 0 0 0
C diversification of investments. 0 0 0
D issuance of senior securities. 0 0 0
E purchasing or reselling options, puts,
calls, straddles and spreads. 0 0 0
F investments in commodities. 0 0 0
3 Declaration of trust 0 0 0
000 0000000000 000 0
999 999 999 999 99
PUTNAM TAX EXEMPT INCOME FUND
FOR WITHHOLD
ALL ALL
1 Election of Trustees. (refer to nominees at
top of page) 0 0
except#------------------------------
FOR AGAINST ABSTAIN
2 Investment restriction 0 0 O
A borrowing. 0 0 0
B making loans. 0 0 0
C diversification of investments. 0 0 0
D issuance of senior securities. 0 0 0
E purchasing or reselling options, puts,
calls, straddles and spreads. 0 0 0
F investments in commodities. 0 0 0
3 Declaration of trust 0 0 0
000 0000000000 000 0
999 999 999 999 99
PUTNAM TAX EXEMPT MONEY MARKET FUND
FOR WITHHOLD
ALL ALL
1 Election of Trustees. (refer to nominees at
top of page) 0 0
except#------------------------------
FOR AGAINST ABSTAIN
2 Investment restriction 0 0 0
A borrowing. 0 0 0
B making loans. 0 0 0
C diversification of investments. 0 0 0
D issuance of senior securities. 0 0 0
E purchasing or reselling options, puts,
calls, straddles and spreads. 0 0 0
F investments in commodities. 0 0 0
3 Declaration of trust 0 0 0
000 0000000000 000 0
999 999 999 999 99
PUTNAM TAX-FREE HIGH YIELD FUND
FOR WITHHOLD
ALL ALL
1 Election of Trustees. (refer to nominees at
top of page) 0 0
except#------------------------------
FOR AGAINST ABSTAIN
2 Investment restriction 0 0 0
A borrowing. 0 0 0
B making loans. 0 0 0
C diversification of investments. 0 0 0
D issuance of senior securities. 0 0 0
E purchasing or reselling options, puts,
calls, straddles and spreads. 0 0 0
F investments in commodities. 0 0 0
3 Declaration of trust 0 0 0
000 0000000000 000 0
999 999 999 999 99
PUTNAM TAX-FREE INSURED FUND
FOR WITHHOLD
ALL ALL
1 Election of Trustees. (refer to nominees at
top of page) 0 0
except#------------------------------
FOR AGAINST ABSTAIN
2 Investment restriction 0 0 0
A borrowing. 0 0 0
B making loans. 0 0 0
C diversification of investments. 0 0 0
D issuance of senior securities. 0 0 0
E purchasing or reselling options, puts,
calls, straddles and spreads. 0 0 0
F investments in commodities. 0 0 0
3 Declaration of trust 0 0 0
000 0000000000 000 0
999 999 999 999 99
PUTNAM U.S. GOVERNMENT INCOME TRUST
FOR WITHHOLD
ALL ALL
1 Election of Trustees. (refer to nominees at
top of page) 0 0
except#------------------------------
FOR AGAINST ABSTAIN
2 Investment restriction 0 0 0
A borrowing. 0 0 0
B making loans. 0 0 0
C diversification of investments. 0 0 0
D issuance of senior securities. 0 0 0
E purchasing or reselling options, puts,
calls, straddles and spreads. 0 0 0
F investments in commodities. 0 0 0
3 Declaration of trust 0 0 0
Internet Voting Instruction Card
[Name of Fund]
THE TRUSTEES RECOMMEND VOTING FOR ALL PROPOSALS.
Proposal 1 Proposal to elect all nominees for Trustees.
_ FOR all nominees _ WITHHOLD AUTHORITY to vote for all nominees
_ FOR all nominees (Except as indicated)
(01) _ J.A. Baxter (08) _ E.T. Kennan
(02) _ C.B. Curtis (09) _ J.H. Mullin, III
(03) _ M.R. Drucker (10) _ R.E. Patterson
(04) _ C.E. Haldeman, Jr. (11) _ G. Putnam, III
(05) _ J.A. Hill (12) _ A.J.C. Smith
(06) _ R.J. Jackson (13) _ W.T. Stephens
(07) _ P.L. Joskow (14) _ R.B. Worley
- ------------------------------------------------------------------
Proposal 2 Proposals to approve an amendment to certain funds'
fundamental investment restrictions with respect to
- ------------------------------------------------------------------
Proposal 2A borrowing. _ FOR _ AGAINST _ ABSTAIN
- ------------------------------------------------------------------
Proposal 2B making loans. _ FOR _ AGAINST _ ABSTAIN
- ------------------------------------------------------------------
Proposal 2C diversification
of investments. _ FOR _ AGAINST _ ABSTAIN
- ------------------------------------------------------------------
Proposal 2D issuance of senior
securities. _ FOR _ AGAINST _ ABSTAIN
- ------------------------------------------------------------------
Proposal 2E options, puts, calls,
straddles and spread. _ FOR _ AGAINST _ ABSTAIN
- ------------------------------------------------------------------
Proposal 2F commodities. _ FOR _ AGAINST _ ABSTAIN
- ------------------------------------------------------------------
Proposal 2G Proposal to amend a fund's
investment objective _ FOR _ AGAINST _ ABSTAIN
- ------------------------------------------------------------------
Proposal 3 Proposal to approve an
amendment to your fund's
agreement and declaration
of trust. _ FOR _ AGAINST _ ABSTAIN
- ------------------------------------------------------------------
By submitting your voting instructions on this site, you as a Putnam
fund shareholder appoint Trustees John A. Hill and Robert E. Patterson,
and each of them separately, with power of substitution to each, to be
your proxies. You are empowering them to vote your Putnam fund shares on
your behalf at a meeting of the shareholders of the Putnam funds. The
meeting will take place on November 11, 2004 at 11:00 a.m. in Boston,
and may be adjourned to later times or dates. Your vote is being
solicited on behalf of the Trustees. If you submit your voting
instruction on this site, the Trustees will vote exactly as you have
indicated. If you submit your voting instruction on this site but don't
vote on a specific proposal, your shares will be automatically voted as
the Trustees recommend. The Trustees are also authorized to vote at
their discretion on any other matter that arises at the meeting or any
adjournment of the meeting.
- ------------------------------------------------------------------
To receive an optional email confirmation, enter your email address
here:
Please review your selections carefully before voting.
If you vote more than once on the same Proxy, only your last (most
recent) vote will be considered valid.
Press this button to <<SUBMIT>> your voting instructions.
Please review your selections carefully before submitting your voting
instructions.
If you have questions about any of the proposals, please call
1-877-832-6360.
If you submit your voting instructions more than once for the same
proposal, only your most recently received voting instructions will be
considered valid. For this purpose, the voting instructions with the
most recent date will be considered the most recently received. The
proxy tabulator, in its sole discretion, will resolve any discrepancies
in voting instructions.
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