497 1 ig1.txt PUTNAM INTERNATIONAL GROWTH FUND Prospectus Supplement 87053 9/02 dated October 1, 2002 to: --------------------------------------------------------------------------- Putnam International Growth Fund (the "fund") Prospectuses dated October 30, 2001, as revised March 30, 2002 The section entitled "FEES AND EXPENSES" is replaced with the following: This table summarizes the fees and expenses you may pay if you invest in the fund. Expenses are based on the fund's last fiscal year. Shareholder Fees (fees paid directly from your investment) Class A Class B Class C Class M Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of the offering price) 5.75% NONE NONE 3.50% Maximum Deferred Sales Charge (Load) (as a percentage of the original purchase price or redemption proceeds, whichever is lower) NONE* 5.00% 1.00% NONE* Redemption Fee** (as a percentage of total redemption proceeds) 1.00% 1.00% 1.00% 1.00% Annual Fund Operating Expenses (expenses that are deducted from fund assets) Total Annual Management Distribution Other Fund Operating Fees (12b-1) Fees Expenses Expenses Class A 0.60% 0.25% 0.28% 1.13% Class B 0.60% 1.00% 0.28% 1.88% Class C 0.60% 1.00% 0.28% 1.88% Class M 0.60% 0.75% 0.28% 1.63% * A deferred sales charge of up to 1% on class A shares and of 0.65% on class M shares may be imposed on certain redemptions of shares bought without an initial sales charge. **The redemption fee may apply to any shares purchased after October 1, 2002 that are redeemed (either by selling or exchanging into another fund) within 90 days of purchase. ************************************************************************ In the section entitled "How do I sell fund shares", the following paragraph is inserted after the first paragraph: Effective October 1, 2002, the fund will impose a redemption fee of 1.00% of the total redemption amount (calculated at market value) if you sell or exchange your shares after holding them for less than 90 days. The redemption fee is paid directly to the fund, and is designed to offset brokerage commissions, market impact, and other costs associated with short-term trading. For purposes of determining whether the redemption fee applies, the shares that were held the longest will be redeemed first. The redemption fee will only apply to shares purchased after October 1, 2002. The redemption fee may not apply in certain circumstances, such as redemptions on certain omnibus accounts, including 401(k) plans, and in the event of shareholder death or disability. Please see the Statement of Additional Information for details. ************************************************************************ Also, in the section entitled "How do I exchange fund shares?", the following paragraph replaces the third paragraph: The exchange privilege is not intended as a vehicle for short-term trading. Excessive exchange activity may interfere with portfolio management and have an adverse effect on all shareholders. In order to limit excessive exchange activity and otherwise to promote the best interests of the fund, the fund imposes a redemption fee of 1.00% of the total exchange amount (calculated at market value) on exchanges of shares held less than 90 days. The fund also reserves the right to revise or terminate the exchange privilege, limit the amount or number of exchanges or reject any exchange. The fund into which you would like to exchange may also reject your exchange. These actions may apply to all shareholders or only to those shareholders whose exchanges Putnam Management determines are likely to have a negative effect on the fund or other Putnam funds. Consult Putnam Investor Services before requesting an exchange. Prospectus Supplement 87054 9/02 dated October 1, 2002 to: ---------------------------------------------------------------------------- Putnam International Growth Fund (the "fund") Class A Prospectus dated October 30, 2001 The section entitled "FEES AND EXPENSES" is replaced with the following: This table summarizes the fees and expenses you may pay if you invest in the class A shares of the fund. Expenses are based on the fund's last fiscal year. Shareholder Fees (fees paid directly from your investment) Class A Maximum Sales Charge (Load) NONE Maximum Deferred Sales Charge (Load) 0.75%* Redemption Fee** (as a percentage of total redemption proceeds) 1.00% Annual Fund Operating Expenses (expenses that are deducted from fund assets) Total Annual Management Distribution Other Fund Operating Fees (12b-1) Fees Expenses Expenses Class A 0.60% 0.25% 0.28% 1.13% *The deferred sales charge is applicable only to a plan that redeems 90% or more of its cumulative purchases within two years. **The redemption fee may apply to any shares purchased after October 1, 2002 that are redeemed (either by selling or exchanging into another fund) within 90 days of purchase. ************************************************************************ In the section entitled "How do I sell fund shares", the following paragraph is inserted after the first paragraph: Effective October 1, 2002, the fund will impose a redemption fee of 1.00% of the total redemption amount (calculated at market value) if you sell or exchange your shares after holding them for less than 90 days. The redemption fee is paid directly to the fund, and is designed to offset brokerage commissions, market impact, and other costs associated with short-term trading. For purposes of determining whether the redemption fee applies, the shares that were held the longest will be redeemed first. The redemption fee will only apply to shares purchased after October 1, 2002. The redemption fee may not apply in certain circumstances, such as redemptions on certain omnibus accounts, including 401(k) plans, and in the event of shareholder death or disability. Please see the Statement of Additional Information for details. ************************************************************************ Also, in the section entitled "How do exchange fund shares?", the following paragraph is added: The exchange privilege is not intended as a vehicle for short-term trading. Excessive exchange activity may interfere with portfolio management and have an adverse effect on all shareholders. In order to limit excessive exchange activity and otherwise to promote the best interests of the fund, the fund imposes a redemption fee of 1.00% of the total exchange amount (calculated at market value) on exchanges of shares held less than 90 days. The fund also reserves the right to revise or terminate the exchange privilege, limit the amount or number of exchanges or reject any exchange. The fund into which you would like to exchange may also reject your exchange. These actions may apply to all shareholders or only to those shareholders whose exchanges Putnam Management determines are likely to have a negative effect on the fund or other Putnam funds. Consult Putnam Investor Services before requesting an exchange. Prospectus Supplement 87055 9/02 dated October 1, 2002 to: ------------------------------------------------------------------------- Putnam International Growth Fund (the "fund") Class Y Prospectus dated October 30, 2001 The section entitled "FEES AND EXPENSES" is replaced with the following: This table summarizes the fees and expenses you may pay if you invest in the class Y shares of the fund. Expenses are based on the fund's last fiscal year. Shareholder Fees (fees paid directly from your investment) Maximum Sales Charge (Load) NONE Maximum Deferred Sales Charge (Load) NONE Redemption Fee* (as a percentage of total redemption proceeds) 1.00% Annual Fund Operating Expenses (expenses that are deducted from fund assets) Total Annual Management Other Fund Operating Fees Expenses Expenses Class Y 0.60% 0.28% 0.88% *The redemption fee may apply to any shares purchased after October 1, 2002 that are redeemed (either by selling or exchanging into another fund) within 90 days of purchase. ************************************************************************ In the section entitled "How do I sell fund shares", the following paragraph is inserted after the third paragraph: Effective October 1, 2002, the fund will impose a redemption fee of 1.00% of the total redemption amount (calculated at market value) if you sell or exchange your shares after holding them for less than 90 days. The redemption fee is paid directly to the fund, and is designed to offset brokerage commissions, market impact, and other costs associated with short-term trading. For purposes of determining whether the redemption fee applies, the shares that were held the longest will be redeemed first. The redemption fee will only apply to shares purchased after October 1, 2002. The redemption fee may not apply in certain circumstances, such as redemptions on certain omnibus accounts, including 401(k) plans, and in the event of shareholder death or disability. Please see the Statement of Additional Information for details. ************************************************************************ Also, in the section entitled "How do exchange fund shares?", the following replaces the last paragraph: The exchange privilege is not intended as a vehicle for short-term trading. Excessive exchange activity may interfere with portfolio management and have an adverse effect on all shareholders. In order to limit excessive exchange activity and otherwise to promote the best interests of the fund, the fund imposes a redemption fee of 1.00% of the total exchange amount (calculated at market value) on exchanges of shares held less than 90 days. The fund also reserves the right to revise or terminate the exchange privilege, limit the amount or number of exchanges or reject any exchange. The fund into which you would like to exchange may also reject your exchange. These actions may apply to all shareholders or only to those shareholders whose exchanges Putnam Management determines are likely to have a negative effect on the fund or other Putnam funds.