Putnam Global Equity Fund 4/30/05 semiannual report

77e

Note 6
Regulatory matters and litigation

Putnam Management has entered into agreements with the
Securities and Exchange Commission and the Massachusetts
Securities Division settling charges connected with excessive
short-term trading by Putnam employees and, in the case of the
charges brought by the Massachusetts Securities Division, by
participants in some Putnam-administered 401(k) plans.  Pursuant
to these settlement agreements, Putnam Management will pay a
total of $193.5 million in penalties and restitution, with
$153.5 million being paid to shareholders and the funds. The
restitution amount will be allocated to shareholders pursuant to
a plan developed by an independent consultant, with payments to
shareholders currently expected by the end of the summer.

The Securities and Exchange Commissions and Massachusetts
Securities Divisions allegations and related matters also serve
as the general basis for numerous lawsuits, including purported
class action lawsuits filed against Putnam Management and
certain related parties, including certain Putnam funds.  Putnam
Management will bear any costs incurred by Putnam funds in
connection with these lawsuits.  Putnam Management believes that
the likelihood that the pending private lawsuits and purported
class action lawsuits will have a material adverse financial
impact on the fund is remote, and the pending actions are not
likely to materially affect its ability to provide investment
management services to its clients, including the Putnam funds.

On March 23, 2005, Putnam Management entered into a settlement
with the Securities and Exchange Commission resolving its
inquiry into Putnam Managements alleged failure to fully and
effectively disclose a former brokerage allocation practice to
the Board of Trustees and shareholders of the Putnam Funds.
This practice, which Putnam Management ceased as of January 1,
2004, involved allocating a portion of the brokerage on mutual
fund portfolio transactions to certain broker-dealers who sold
shares of Putnam mutual funds.    Under the settlement order,
Putnam Management has paid a civil penalty of $40 million and
disgorgement of $1 to the Securities and Exchange Commission.
These amounts subsequently will be distributed to certain Putnam
funds pursuant to a plan to be approved by the Securities and
Exchange Commission.  As part of the settlement, Putnam
Management neither admitted nor denied any wrongdoing.

Putnam Investments has recorded a charge of $30 million for the
estimated cost that it believes will be necessary to address
issues relating to the calculation of certain amounts paid by
the Putnam mutual funds in previous years. The previous payments
were cost reimbursements by the Putnam funds to Putnam for
transfer agent services relating to defined contribution
operations.  Putnam currently anticipates that any payments made
by Putnam related to this issue will be paid to the Putnam
funds.  Review of this issue is ongoing.