<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>hib1.txt
<DESCRIPTION>PUTNAM HIGH INCOME BOND FUND
<TEXT>

                   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 HIGH INCOME BOND FUND

         (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):
----
/ X / No fee required
----
----
/   / Fee computed on table below per Exchange Act Rule 14a
----  6(i)(1) and 0-11

(1) Title of each class of securities to which transaction applies:

(2) Aggregate number of securities to which transaction applies:

(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (set forth the amount on which the
filing fee is calculated and state how it was determined):

(4) Proposed maximum aggregate value of transaction:

(5) Total fee paid:
----
/   / Fee paid previously with preliminary materials.
----
----
/   / Check box if any part of the fee is offset as provided by Exchange
----  Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee
      was paid previously.  Identify the previous filing by registration
      statement number, or the Form or Schedule and the date of its filing.

(1) Amount Previously Paid:

(2) Form, Schedule or Registration Statement No.:

(3) Filing Party:

(4) Date Filed:


Important information for shareholders of

PUTNAM HIGH INCOME BOND FUND

The document you hold in your hands contains your proxy statement and proxy
card. Your proxy tells us how to vote on your behalf on important issues
relating to your fund. If you complete and sign the proxy, we'll vote it
exactly as you tell us. If you simply sign the proxy, we'll vote it in
accordance with the Trustees' recommendations on page 3.

We urge you to carefully review the proxy statement, and provide your
voting instructions by using any of the methods shown on your proxy card.
When shareholders don't return their proxies in sufficient numbers, we have
to make follow up solicitations, which can cost your fund money.

We want to know how you would like to vote and welcome your comments.
Please take a few minutes with these materials and return your proxy to us.

PUTNAM INVESTMENTS

[SCALE LOGO OMITTED]


Table of contents

A Message from the Chairman              1

Notice of Shareholder Meeting            2

Trustees' Recommendations                3

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 your fund. While you are, of course, welcome to join us
at your fund's meeting, most shareholders cast their vote by either
filling out and signing the enclosed proxy card or by voting via the
Internet. We are asking for your vote on the following matter: fixing the
number of Trustees at thirteen and electing your fund's Trustees.

Although we would like very much to have each shareholder attend his or her
fund's meeting, we realize that this may not be possible. Whether or not
you plan to be present, we need your vote. We urge you to record your
voting instructions via the Internet or by completing, signing, and
returning the enclosed proxy card promptly. A postage-paid envelope is
enclosed for mailing, and Internet voting instructions are listed at the
top of your proxy card.

I'm sure that you, like most people, lead a busy life and are tempted to
put this proxy aside for another day. Please don't. When shareholders do
not vote their proxies, their fund may have to incur the expense of
follow-up solicitations. All shareholders benefit from the speedy return of
proxies.

Your vote is important to us. We appreciate the time and consideration I am
sure you will give this important matter. If you have questions about the
proposal, 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


PUTNAM HIGH INCOME BOND FUND

Notice of Annual Meeting of Shareholders

* This is the formal agenda for your fund's shareholder meeting. It tells
you what matters will be voted on and the time and place of the meeting, in
the event you attend in person.

To the Shareholders of Putnam High Income Bond Fund:

The Annual Meeting of Shareholders of your fund will be held on August 21,
2003 at 11:00 a.m., Boston time, at the principal offices of the fund on
the eighth floor of One Post Office Square, Boston, Massachusetts, to
consider the following:

1. Fixing the number of Trustees and electing Trustees. See page 3.

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
Lawrence J. Lasser
John H. Mullin, III
Robert E. Patterson
A.J.C. Smith
W. Thomas Stephens
W. Nicholas Thorndike

We urge you to mark, sign, date, and mail the enclosed proxy in the
postage-paid envelope provided or record your voting instructions via the
Internet so that you will be represented at the meeting.

June 16, 2003


Proxy statement

This document will give you the information you need to vote on the
proposal. 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 Putnam High Income Bond
Fund for use at the Annual Meeting of Shareholders of the fund to be held
on August 21, 2003, and, if your fund's meeting is adjourned, at any later
meetings, for the purposes stated in the Notice of Annual Meeting (see
previous page). The Notice of Annual Meeting, the proxy and the Proxy
Statement are being mailed on or about June 16, 2003.

* How do your fund's trustees recommend that shareholders vote on this
proposal?

The Trustees recommend that you vote

1. For fixing the number of trustees at thirteen as proposed and the
election of all nominees.

* Who is eligible to vote?

Shareholders of record at the close of business on May 30, 2003 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.


The Proposals

I. Election of Trustees

* Who are the nominees for Trustees?

The Board Policy and Nominating Committee of the Trustees of your fund
makes recommendations concerning the Trustees of that fund. The Board
Policy and Nominating Committee consists solely of Trustees who are not
"interested persons" (as defined in the Investment Company Act of 1940) of
your fund or of Putnam Investment Management, LLC, your fund's investment
manager ("Putnam Management").

The Board Policy and Nominating Committee of the Trustees of your fund
recommends that the number of Trustees be fixed at thirteen and that you
vote for the election of the nominees described below. Each nominee is
currently a Trustee of your fund and of the other Putnam funds. The 13
nominees for election as Trustees at the shareholder meeting of your fund
who receive the greatest number of votes will be elected as Trustees of
your fund.

The nominees for Trustees and their backgrounds are shown in the table
below. The table discloses each nominee's name, date of birth, principal
occupation(s) during the past 5 years, and other information about the
nominee's professional background, including other directorships the
nominee holds. For more in depth bio information, please refer to Putnam
Investments website: www.Putnaminv.com. Each nominee currently serves as a
Trustee. Each Trustee oversees all of the Putnam funds and, with respect to
your fund, serves until the election and qualification of his or her
successor, or until he or she sooner dies, resigns or is removed. The
address of all of the Trustees is One Post Office Square, Boston,
Massachusetts 02109. At December 31, 2002, there were 101 Putnam funds.

Jameson Adkins Baxter (9/6/43)
Trustee since 1994

[GRAPHIC OMITTED: PHOTO OF JAMESON ADKINS BAXTER]
--------------------------------------------

Ms. Baxter is the President of Baxter Associates, Inc., a private
investment firm that she founded in 1986.

Ms. Baxter also 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 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).

Charles B. Curtis (4/27/40),
Trustee since 2001

[GRAPHIC OMITTED: PHOTO OF CHARLES B. CURTIS]
--------------------------------------------

Mr. Curtis is President and Chief Operating Officer, Nuclear Threat
Initiative (a private foundation dealing with national security issues).
Mr. Curtis also 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. (fossil
energy research and development support).

John A. Hill (1/31/42),
Trustee since 1985 and Chairman since 2000

[GRAPHIC OMITTED: PHOTO OF JOHN A. HILL]
---------------------------------------

Mr. Hill is Vice-Chairman and Managing Director, First Reserve Corporation
(a registered investment adviser investing in companies in the world-wide
energy industry on behalf of institutional investors).

Mr. Hill is also a Director of Devon Energy Corporation (formerly known as
Snyder Oil Corporation), TransMontaigne Oil Company, Continuum Health
Partners of New York, Sarah Lawrence College and various private companies
controlled by First Reserve Corporation. He is also a Trustee of TH Lee,
Putnam Investment Trust (a closed-end investment company).

Ronald J. Jackson (12/17/43),
Trustee since 1996

[GRAPHIC OMITTED: PHOTO OF RONALD J. JACKSON]
--------------------------------------------

Mr. Jackson is a private investor.

Mr. Jackson is President of the Kathleen and Ronald J. Jackson Foundation
(a charitable trust). He is also a Member of the Board of Overseers of WGBH
(public television and radio) as well as a Member of the Board of Overseers
of the Peabody Essex Museum.

Paul L. Joskow (6/30/47),
Trustee since 1997

[GRAPHIC OMITTED: PHOTO OF PAUL L. JOSKOW]
-----------------------------------------

Dr. Joskow is Elizabeth and James Killian Professor of Economics and
Management and Director of the Center for Energy and Environmental Policy
Research, Massachusetts Institute of Technology.

Dr. Joskow also 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 the Whitehead
Institute for Biomedical Research (a non-profit research institution). He
has been President of the Yale University Council since 1993. Prior to
February 2002, March 2000 and September 1998, Dr. Joskow was a Director of
State Farm Indemnity Company (an automobile insurance company), a Director
of New England Electric System (a public utility holding company) and a
consultant to National Economic Research Associates, respectively.

Elizabeth T. Kennan (2/25/38),
Trustee since 1992

[GRAPHIC OMITTED: PHOTO OF ELIZABETH T. KENNAN]
----------------------------------------------

Dr. Kennan is Chairman, Cambus-Kenneth Bloodstock (a limited liability
company involved in thoroughbred horse breeding and farming) and President
Emeritus of Mount Holyoke College.

Dr. Kennan also serves as a Trustee of Northeast Utilities and Centre
College. She is also a Director of Talbots (a distributor of women's
apparel). Prior to 2001, Dr. Kennan was a Member of the Oversight Committee
of the Folger Shakespeare Library. Prior to September 2000, June 2000, and
November 1999, Dr. Kennan was a Director of Chastain Real Estate, Bell
Atlantic and Kentucky Home Life Insurance, respectively.

John H. Mullin, III (6/15/41),
Trustee since 1997

[GRAPHIC OMITTED: PHOTO OF JOHN H. MULLIN, III]
----------------------------------------------

Mr. Mullin is the Chairman and CEO of Ridgeway Farm (a limited liability
company engaged in timber and farming).

Mr. Mullin is also a Director of Alex. Brown Realty, Inc., The Liberty
Corporation (a company engaged in the broadcasting industry), Progress
Energy, Inc. (a utility company, formerly known as Carolina Power & Light)
and Sonoco Products, Inc. (a packaging company). Mr. Mullin is a Trustee
Emeritus of Washington & Lee University where he served as Chairman of the
Investment Committee. Prior to May 2001, he was a Director of Graphic
Packaging International Corp.

Robert E. Patterson (3/15/45),
Trustee since 1984

[GRAPHIC OMITTED: PHOTO OF ROBERT E. PATTERSON]
----------------------------------------------

Mr. Patterson is Senior Partner of Cabot Properties, L.P. and Chairman of
Cabot Properties, Inc.

Mr. Patterson is also Chairman of the Joslin Diabetes Center, a Trustee of
SEA Education Association and a Director of Brandywine Trust Company. Prior
to December 2001, he served as President and Trustee of Cabot Industrial
Trust (a publicly traded real estate investment trust).

W. Thomas Stephens (9/2/42),
Trustee since 1997

[GRAPHIC OMITTED: PHOTO OF W. THOMAS STEPHENS]
---------------------------------------------

Mr. Stephens is a Corporate Director.

Mr. Stephens is a Director of Qwest Communications, Xcel Energy
Incorporated (a public utility company), TransCanada Pipelines, and Norske
Canada, Inc. (a paper manufacturer). Until 2003, Mr. Stephens was a
Director of Mail-Well (a printing and envelope company). Prior to July 2001
and October 1999, Mr. Stephens was Chairman of Mail-Well and CEO of
MacMillan-Bloedel (a forest products company).

W. Nicholas Thorndike (3/28/33),
Trustee since 1992

[GRAPHIC OMITTED: PHOTO OF W. NICHOLAS THORNDIKE]
------------------------------------------------

Mr. Thorndike is a Director of various corporations and charitable
organizations, including Courier Corporation (a book manufacturer and
publisher) and The Providence Journal Co. (a newspaper publisher).

Mr. Thorndike is also a Trustee of Northeastern University and an Honorary
Trustee of Massachusetts General Hospital, where he previously served as
Chairman and President. Prior to September 2000, April 2000, and December
2001, Mr. Thorndike was a Director of Bradley Real Estate, Inc., a Trustee
of Eastern Utilities Associates, and a Trustee of Cabot Industrial Trust,
respectively.

* Interested trustees

Lawrence J. Lasser* (11/1/42),
Trustee since 1992 and Vice President since 1981

[GRAPHIC OMITTED: PHOTO OF LAWRENCE J. LASSER]
---------------------------------------------

Mr. Lasser is the President and Chief Executive Officer of Putnam
Investments and Putnam Management. He has been President and Chief
Executive Officer since 1985, having begun his career there in 1969.

Mr. Lasser is also a Director of Marsh & McLennan Companies, Inc. and the
United Way of Massachusetts Bay. He also serves as a Member of the Board of
Governors of the Investment Company Institute, as a Trustee of the Museum
of Fine Arts, Boston, and as a Trustee and Member of the Finance and
Executive Committees of Beth Israel Deaconess Medical Center, Boston. He is
a Member of the CareGroup Board of Managers Investment Committee, the
Council on Foreign Relations and the Commercial Club of Boston.

George Putnam III* (8/10/51),
Trustee since 1984 and President since 2000

[GRAPHIC OMITTED: PHOTO OF GEORGE PUTNAM III]
--------------------------------------------

Mr. Putnam is the President of New Generation Research, Inc. (a publisher
of financial advisory and other research services relating to bankrupt and
distressed companies), and of New Generation Advisers, Inc. (a registered
investment adviser that provides advice to private funds specializing in
investments in such companies). He founded New Generation in 1985.

Mr. Putnam is also a Director of The Boston Family Office, L.L.C. (a
registered investment advisor), and a Trustee of St. Mark's School and
Shore Country Day School. Until 2002, Mr. Putnam was a Trustee of the SEA
Education Association.

A.J.C. Smith* (4/13/34),
Trustee since 1986

[GRAPHIC OMITTED: PHOTO OF A.J.C. SMITH]
---------------------------------------

Mr. Smith is a Director of Marsh & McLennan Companies, Inc.

Mr. Smith is also Director of Trident Corp. (a limited partnership with
over thirty institutional investors), and 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.
--------------------------------------------------------------------------

* Nominees who are or may be deemed to be "interested persons" (as
defined in the Investment Company Act of 1940) of the fund, Putnam
Management, Putnam Retail Management, or Marsh & McLennan Companies, Inc.,
the parent company of Putnam, LLC and its affiliated companies. Messrs.
Putnam, Lasser and Smith are deemed "interested persons" by virtue of their
positions as officers or shareholders of the fund or Putnam Management,
Putnam Retail Management, or Marsh & McLennan Companies, Inc. George
Putnam, III is the President of your Fund and each of the other Putnam
funds. Lawrence J. Lasser is the President and Chief Executive Officer of
Putnam Investments and Putnam Management. Mr. Lasser and Mr. Smith each
serves as Director of Marsh & McLennan Companies, Inc. The balance of the
nominees are not "interested persons."

All the nominees were elected by the shareholders on August 15, 2002. The
13 nominees for election as Trustees will be elected as Trustees of your
fund. The 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 less than 13
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, 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
auditors, counsel and other experts as appropriate, selected by and
responsible to the Trustees.

Your fund's Trustees have determined that the efficient conduct of your
fund's affairs makes it desirable to delegate responsibility for certain
specific matters to committees of the board. Certain committees (the
Executive Committee, Distributions Committee, and Audit and Pricing
Committee) are authorized to act for the Trustees as specified in their
charters. The other committees review and evaluate matters specified in
their charters and make recommendations to the Trustees as they deem
appropriate. Each committee may utilize the resources of your fund's
independent staff, counsel and auditors as well as other experts. The
committees meet as often as necessary, either in conjunction with regular
meetings of the Trustees or otherwise. The membership and chairman of each
committee are appointed by the Trustees upon recommendation of the Board
Policy and Nominating Committee.

Audit and Pricing Committee. The Audit and Pricing Committee provides
oversight on matters relating to the preparation of the funds' financial
statements, compliance matters and Code of Ethics issues. This oversight is
discharged by regularly meeting with management and the funds' independent
auditors and keeping current on industry developments. Duties of this
Committee also include the review and evaluation of all matters and
relationships pertaining to the funds' independent auditors, including
their independence. The members of the Audit and Pricing Committee of your
fund include only Trustees who are not "interested persons" of the fund or
Putnam Management. Each member of the Audit and Pricing Committee is
"independent" as defined in Sections 303.01(B)(2)(a) and (3) of the listing
standards of the New York Stock Exchange. The Committee also reviews the
funds' policies and procedures for achieving accurate and timely pricing of
the funds' shares, including oversight of fair value determinations of
individual securities made by Putnam Management or other designated agents
of the funds. The Committee oversees compliance by money market funds with
Rule 2a-7, interfund transactions pursuant to Rule 17a-7, and the
correction of occasional pricing errors. The Committee also receives
reports regarding the liquidity of portfolio securities. The Trustees have
adopted a written charter for the Audit and Pricing Committee. The
Committee currently consists of Dr. Joskow (Chairperson), Messrs. Thorndike
and Stephens and Dr. Kennan.

Board Policy and Nominating Committee. The Board Policy and Nominating
Committee reviews 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 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 makes recommendations to the Board as
appropriate. The Committee consists only of Trustees who are not
"interested persons" of your fund or Putnam Management. The Committee also
oversees the voting of proxies associated with portfolio investments of the
Putnam funds, with the goal of ensuring that these proxies are voted in the
best interest of the fund's shareholders. The Board Policy and Nominating
Committee currently consists of Dr. Kennan (Chairperson), Ms. Baxter and
Messrs. Hill, Mullin, Patterson and Thorndike. The Board Policy and
Nominating Committee will consider nominees for trustee recommended by
shareholders of a fund provided shareholders submit their recommendations
by the date disclosed in the paragraph entitled "Date for receipt of
shareholder proposals for the next annual meeting" and provided the
shareholders' recommendations otherwise comply with applicable securities
laws, including Rule 14a-8 under the Securities Exchange Act of 1934.

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, Mullin, Thorndike, 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, Stephens,
Thorndike 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 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. Its oversight of the closed-end funds includes (i)
investment performance, (ii) trading activity, (iii) determinations with
respect to sunroof provisions, (iv) disclosure practices, and (v) the use
of leverage. The Committee consists only of Trustees who are not
"interested persons" of your fund or Putnam Management. The Committee
currently consists of Ms. Baxter (Chairperson) and Messrs. Curtis, Jackson,
Mullin and Patterson.

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 Investments to review
distribution levels and the funds' distribution policies. The Committee
currently consists of Messrs. Patterson (Chairperson), Jackson, Thorndike
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 Investments on behalf of the
shareholders of the Putnam funds. The Committee currently consists of
Messrs. Hill (Chairman), Jackson, Dr. Joskow, Putnam, Thorndike and Ms.
Baxter.

Investment Oversight Committees. These Committees regularly meet with
investment personnel of Putnam Management to review the investment
performance and strategies of the Putnam funds in light of their stated
investment objectives and policies. Investment Oversight Committee A
currently consists of Messrs. Curtis (Chairperson), Hill, and Lasser and
Dr. Kennan. Investment Oversight Committee B currently consists of Dr.
Joskow (Chairperson), Ms. Baxter and Mr. Putnam. Investment Committee C
currently consists of Messrs. Mullin (Chairperson), Jackson and Smith.
Investment Oversight Committee D currently consists of Messrs. Patterson
(Chairperson), Stephens and Thorndike.

The Investment Company Act of 1940 requires that your fund have a minimum
proportion of trustees who are not affiliated in any way with your fund's
investment manager, principal underwriter from time to time or any
broker-dealer. These independent trustees must vote separately to approve
all financial arrangements and other agreements with your fund's investment
manager and other affiliated parties. The role of independent trustees has
been characterized as that of a "watchdog" charged with oversight to
protect shareholders' interests against overreaching and abuse by those who
are in a position to control or influence a fund. The Trustees of your fund
believe that independent trustees should represent at least two-thirds of
the members of the board. Your fund's independent trustees meet regularly
as a group in executive session.

* How large a stake do the trustees have in the Putnam family of funds?

The Trustees believe each Trustee should have a significant investment in
the Putnam funds. The Trustees allocate their investments among the Putnam
funds based on their own investment needs. The table below shows the number
of shares beneficially owned by each Trustee and the value of each
Trustee's holdings in the fund and in all of the Putnam funds as of April
30, 2003.

<TABLE>
<CAPTION>

Trustee shares table

                                                                Aggregate Dollar
                     Number of           Dollar Range           Range of Shares
                     shares owned        of Putnam              Held in all of the
                     in Putnam           High Income            Putnam Funds
                     High Income         Bond Fund              Overseen by
Name of Trustee      Bond Fund           Shares Owned           Trustee (101)
----------------------------------------------------------------------------------
<S>                     <C>             <C>                    <C>
Jameson A. Baxter        230             $1-$10,000             over $100,000
----------------------------------------------------------------------------------
Charles B. Curtis        110             $1-$10,000             over $100,000
----------------------------------------------------------------------------------
John A. Hill            32,100         over $100,000            over $100,000
----------------------------------------------------------------------------------
Ronald J. Jackson        200             $1-$10,000             over $100,000
----------------------------------------------------------------------------------
Paul L. Joskow           100             $1-$10,000             over $100,000
----------------------------------------------------------------------------------
Elizabeth T. Kennan      234             $1-$10,000             over $100,000
----------------------------------------------------------------------------------
John H. Mullin, III      100             $1-$10,000             over $100,000
----------------------------------------------------------------------------------
Robert E. Patterson      616             $1-$10,000             over $100,000
----------------------------------------------------------------------------------
W. Thomas Stephens       100             $1-$10,000             over $100,000
----------------------------------------------------------------------------------
W. Nicholas Thorndike    298             $1-$10,000             over $100,000
----------------------------------------------------------------------------------
Lawrence J. Lasser       100             $1-$10,000             over $100,000
----------------------------------------------------------------------------------
George Putnam, III       500             $1-$10,000             over $100,000
----------------------------------------------------------------------------------
A.J.C. Smith             200             $1-$10,000             over $100,000
----------------------------------------------------------------------------------

</TABLE>

At April 30, 2003, the Trustees and officers of the fund as a group owned
less than 1% of the outstanding shares of such fund on that date.

* What are some of the ways in which the Trustees represent shareholder
interests?

The Trustees believe that, as substantial investors in the Putnam funds,
their interests are closely aligned with those of individual shareholders.
Among other ways, the Trustees seek to represent shareholder interests:

* by carefully reviewing your fund's investment performance on an
individual basis with your fund's managers;

* by also 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 also 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 often do the trustees meet?

The Trustees meet each month (except August) over a two-day period to
review the operations of your fund and of the other Putnam funds. A portion
of these meetings is devoted to meetings of various committees of the board
which focus on particular matters. Each Trustee generally attends at least
two formal committee meetings during each regular meeting of the Trustees.
During 2002, the average Trustee participated in approximately 40 committee
and board meetings. In addition, the Trustees meet in small groups with
Chief Investment Officers and Portfolio Managers to review recent
performance and the current investment climate for selected funds. These
meetings ensure that each fund's performance is reviewed in detail at least
twice a year. The Contract Committee typically meets on several additional
occasions during the year to carry out its responsibilities. Other
committees, including the Executive Committee, may also meet on special
occasions as the need arises. The number of times each committee met during
your fund's last fiscal year is shown in the table below:

Fiscal year ended August 31, 2002
---------------------------------------------------------
Audit and Pricing Committee*                           11
---------------------------------------------------------
Board Policy and Nominating Committee**                 4
---------------------------------------------------------
Brokerage and Custody Committee                         4
---------------------------------------------------------
Communication, Service and Marketing Committee          7
---------------------------------------------------------
Contract Committee                                     12
---------------------------------------------------------
Distributions Committee                                 2
---------------------------------------------------------
Executive Committee                                     2
---------------------------------------------------------
Investment Oversight Committee                         10
---------------------------------------------------------

* Effective February 2002, the Pricing Committee's functions were merged
into the Audit and Pricing Committee. The number of meetings shown
represents the number of meetings held by the Audit Committee during your
fund's last fiscal year. The Pricing Committee met 2 times prior to the
combination.

** Effective March 2002, the Proxy Committee's functions were merged into
the Board Policy and Nominating Committee. The number of meetings shown
represents the number of meetings held by the Board Policy and Nominating
Committee during your fund's last fiscal year. The Proxy Committee met 2
times prior to the combination.

* What are the trustees paid for their services?

Each Trustee of your fund receives a fee for his or her services. Each
Trustee also receives fees for serving as Trustee of the other Putnam
funds. Each Trustee of the fund receives an annual fee and an additional
fee for each Trustees' meeting attended. Trustees who are not interested
persons of Putnam Management and who serve on committees of the Trustees
receive additional fees for attendance at certain committee meetings and
for special services rendered in that connection. All of the Trustees are
Trustees of all the Putnam funds and each receives fees for his or her
services.

The Trustees periodically review their fees to assure 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 Trustees not
affiliated with Putnam Management, 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 Trustee by your fund for its
most recent fiscal year and the fees paid to each Trustee by all of the
Putnam funds during calendar year 2002:


<TABLE>
<CAPTION>

Compensation Table

                                                                 Estimated
                                             Retirement             annual            Total
                             Aggregate         benefits      benefits from     compensation
                          compensation       accrued as         all Putnam         from all
                              from the     part of fund         funds upon           Putnam
Trustees/Year                 fund (1)         expenses     retirement (2)        funds (3)
-------------------------------------------------------------------------------------------
<S>                            <C>                <C>            <C>              <C>
Jameson A. Baxter/1994(4)         $578             $145           $100,000         $216,750
-------------------------------------------------------------------------------------------
Charles B. Curtis/2001             554               56            100,000          206,250
-------------------------------------------------------------------------------------------
John A. Hill/1985(4)(6)            969              207            200,000          388,250
-------------------------------------------------------------------------------------------
Ronald J. Jackson/1996(4)          566              138            100,000          207,250
-------------------------------------------------------------------------------------------
Paul L. Joskow/1997(4)             552              144            100,000          203,750
-------------------------------------------------------------------------------------------
Elizabeth T. Kennan/1992           542              195            100,000          204,250
-------------------------------------------------------------------------------------------
Lawrence J. Lasser/1992(5)          --               87             92,500               --
-------------------------------------------------------------------------------------------
John H. Mullin, III/1997(4)        560              216            100,000          210,000
-------------------------------------------------------------------------------------------
Robert E. Patterson/1984           566              101            100,000          211,000
-------------------------------------------------------------------------------------------
George Putnam, III/1984(6)         682               92            125,000          253,000
-------------------------------------------------------------------------------------------
A.J.C. Smith/1986(5)                --              197             91,833               --
-------------------------------------------------------------------------------------------
W. Thomas Stephens/1997(4)         546              202            100,000          203,250
-------------------------------------------------------------------------------------------
W. Nicholas Thorndike/1992         550              261            100,000          204,500
-------------------------------------------------------------------------------------------

</TABLE>

(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
2002.

(3) As of December 31, 2002, 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 compensation deferred pursuant to a Trustee Compensation
Deferral Plan. The total amounts of deferred compensation payable by the
fund to Ms. Baxter, Mr. Hill, Mr. Jackson, Mr. Joskow, Mr. Mullin, and Mr.
Stephens as of August 31, 2002 were $174, $402, $274, $159 $213, $55.

(5) Marsh & McLennan Companies, Inc., compensates Mr. Lasser and Mr. Smith
for their services as Trustees. The estimated annual retirement benefits
shown in this table for Messrs. Lasser and Smith reflect benefits earned
under the funds' retirement plan prior to July 1, 2000.

(6) Includes additional compensation to Messrs. Hill and Putnam for service
as Chairman and President of the Funds, respectively.

Under a Retirement Plan for Trustees of the Putnam funds (the "Plan"), each
Trustee who retires with at least five years of service as a Trustee of the
funds is entitled to receive an annual retirement benefit equal to one-half
of the average annual compensation paid to such Trustee for the last three
years of service prior to retirement. This retirement benefit is payable
during a Trustee's lifetime, beginning the year following retirement, for a
number of years equal to such Trustee's years of service. A death benefit,
also available under the Plan, assures that the Trustee and his or her
beneficiaries will receive benefit payments for the lesser of an aggregate
period of (i) ten years or (ii) such Trustee's total years of service.

The Plan Administrator (a committee comprised of Trustees that are not
"interested persons" of the fund, as defined in the Investment Company Act
of 1940) 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.

Further information about voting and the meeting

Quorum and Methods of Tabulation. A majority 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 negative vote on a 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.

Solicitation of proxies. In addition to soliciting proxies by mail,
Trustees of your fund and employees of Putnam Management, Putnam Fiduciary
Trust Company, and Putnam Retail Management may solicit proxies in person
or by telephone. Your fund may arrange to have a proxy solicitation firm,
D.F. King & Co., Inc., call you to record your voting instructions by
telephone. If you wish to speak to a D.F. King & Co., Inc. representative,
call 1-800-735-3428. 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 D. F. King & Co., Inc. 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. The giving of such a proxy will not affect your right
to vote in person should you decide to attend the Meeting. To vote via the
Internet you will need the "control" number that appears on your proxy
card. To use the Internet, please access the Internet address listed on
your proxy card. The Internet 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.
Your fund has retained at its own expense D. F. King & Co., Inc., 48 Wall
Street New York, New York 10005, to aid in the solicitation of instructions
for registered and nominee accounts, for a fee not to exceed $2,500 plus
reasonable out-of-pocket expenses for mailing and phone costs. The expenses
of the preparation of proxy statements and related materials, including
printing and delivery costs, are borne by the 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 the next annual meeting.
The Board Policy and Nominating Committee will also consider nominees
recommended by shareholders of the fund to serve as Trustees, provided that
shareholders submit their recommendations by the date set forth below. If a
shareholder who wishes to present a proposal fails to notify the fund by
this date, 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. Shareholders who wish
to propose one or more nominees for election as Trustees, or to make a
proposal fixing the number of Trustees, at the August 2004 annual meeting
must provide written notice to the fund (including all required
information) so that such notice is received in good order by the fund no
earlier than May 23, 2004 and no later than June 22, 2004. It is currently
anticipated that your fund's next annual meeting of shareholders will be
held in August 2004. Shareholder proposals to be included in the proxy
statement for that meeting must be received by your fund before February
17, 2004. Shareholders who wish to make a proposal at the August 2004
annual meeting -- other than one that will be included in the fund's proxy
materials -- should notify the fund no later than May 2, 2004.

Adjournment. If sufficient votes in favor of any of the proposals set forth
in the Notice of the Meeting are not received by the time scheduled for the
Meeting, the persons named as proxies may propose adjournments of the
Meeting for a period or periods of not more than 60 days in the aggregate
to permit further solicitation of proxies. Any adjournment will require the
affirmative vote of a majority of the votes cast on the question in person
or by proxy at the session of the Meeting to be adjourned. The persons
named as proxies will vote in favor of adjournment those proxies that they
are entitled to vote in favor of the proposals. They will vote against any
such adjournment those proxies required to be voted against the proposals.
Your fund pays the costs of any additional solicitation and of any
adjourned session. Any proposals for which sufficient favorable votes have
been received by the time of the meeting may be acted upon and considered
final regardless of whether the meeting is adjourned to permit additional
solicitation with respect to any other proposal.

Financial information. Your fund will furnish to you upon request and
without charge, a copy of the fund's annual report for its most recent
fiscal year, and a copy of its semiannual report for any subsequent
semiannual period. Such requests may be directed to Putnam Investor
Services, P.O. Box 41203, Providence, RI 02940-1203 or 1-800-225-1581.

Fund information

Putnam Investments. Putnam Investment Management, LLC, the fund's
investment manager, is a subsidiary of Putnam Management Trust, which is in
turn owned by Putnam Investments. Putnam Investments is a wholly-owned
subsidiary of Putnam Investments Trust, a holding company that, except for
a minority stake owned by employees, is in turn owned by Marsh & McLennan
Companies, Inc., a leading professional services firm that includes risk
and insurance services, investment management and consulting businesses.
Putnam Fiduciary Trust Company, the fund's investor servicing agent and
custodian is also a subsidiary of Putnam Investments. The address of Putnam
Investments Trust, Putnam Investments, Putnam Investment Management, LLC,
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.

Limitation of Trustee liability. The Agreement and Declaration of Trust of
the fund provides that the fund will indemnify its Trustees and officers
against liabilities and expenses incurred in connection with litigation in
which they may be involved because of their offices with the fund, except
if it is determined in the manner specified in the Agreement and
Declaration of Trust that they have not acted in good faith in the
reasonable belief that their actions were in the best interests of the fund
or that such indemnification would relieve any officer or Trustee of any
liability to the fund or its shareholders arising by reason of willful
misfeasance, bad faith, gross negligence or reckless disregard of his or
her duties. Your fund, at its expense, provides liability insurance for the
benefit of its Trustees and officers.

Independent Auditors. PricewaterhouseCoopers LLP, 160 Federal Street,
Boston, Massachusetts 02110, independent accountants, has been selected by
the Trustees as the independent auditors of your fund for the current
fiscal year. The Audit and Pricing Committee of the Board of Trustees
unanimously approved the selection of PricewaterhouseCoopers LLP in
September 2001, and the Trustees unanimously approved such selection in
September 2001. Among the country's preeminent accounting firms, this firm
also serves as the auditor for various other funds in the Putnam family. It
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. A representative of the independent auditors
is expected to be present at the meeting to make statements and to respond
to appropriate questions.

The following table sets forth the aggregate fees billed for professional
services rendered by your fund's principal accountant for the fund's most
recent fiscal year:

                       Audit Fees       Financial Information       All
                        for All           Systems Design and       Other
     Audit Fees       Putnam Funds       Implementation Fees       Fees
-----------------------------------------------------------------------------
       $49,500         $3,170,144                $0                $8,180
-----------------------------------------------------------------------------

The fees disclosed in the table above under the caption "Audit Fees" are
the aggregate fees billed for professional services rendered for the audit
of your fund's annual financial statements for the most recent fiscal year.
The fees disclosed under the caption "Audit Fees for All Putnam Funds" are
the aggregate fees billed for professional services rendered for the audits
of all Putnam funds for which your fund's independent accountants served as
auditors for each such fund's most recent fiscal year ending on or before
your fund's most recent fiscal year end. The fees disclosed under the
captions "Financial Information Systems Design and Implementation Fees" and
"All Other Fees" include fees billed for services, if any, rendered for
your fund's most recent fiscal year to your fund, to Putnam Management, the
fund's investment manager, and to any entity controlling, controlled by or
under common control with Putnam Management that provides services to the
fund. The amounts disclosed in "All Other Fees" are entirely related to
providing tax compliance assistance and rating agency reviews for the fund
and other assurance services.

The Audit and Pricing Committee of the Board of Trustees is responsible for
making recommendations to the Trustees as to the selection of your fund's
auditors. (Additional information about the Audit and Pricing Committee is
included under "Election of Trustees.") The Audit and Pricing Committee has
established a policy, in addition to other practices and requirements
relating to the selection of the fund's auditors, that all non-audit
services proposed to be performed by your fund's principal accountants for
the fund, Putnam Management and certain related parties be considered and
approved by the Audit and Pricing Committee or by an authorized
representative of the committee in advance of the provision of such
services. This pre-clearance policy calls for the consideration, among
other things, of whether the provision of the proposed services would be
compatible with maintaining the independence of your fund's principal
accountants. The provision of services covered in the table above under
"Financial Information Systems Design and Implementation Fees" and "All
Other Fees" was approved in accordance with such pre-clearance policy.

The Audit and Pricing Committee of your fund has submitted the following
report:

The Audit and Pricing Committee has reviewed and discussed with management
of your fund the audited financial statements for the last fiscal year. The
Audit and Pricing Committee has discussed with your fund's independent
auditors the matters required to be discussed by Statements on Auditing
Standard No. 61 (SAS 61). SAS 61 requires  independent auditors to
communicate to the Audit and Pricing Committee matters including, if
applicable: (1) methods used to account for significant unusual
transactions; (2) the effect of significant accounting policies in
controversial or emerging areas for which there is a lack of authoritative
guidance or consensus; (3) the process used by management in formulating
particularly sensitive accounting estimates and the basis for the auditor's
conclusions regarding the reasonableness of those estimates and (4)
disagreements with management over the application of accounting principles
and certain other matters. The Audit and Pricing Committee has received the
written disclosures and the letter from your fund's independent accountants
required by the SEC's Independence Standards (among other things, requiring
auditors to make written disclosures to and discuss with the Audit and
Pricing Committee various matters relating to the auditor's independence),
and has discussed with such accountants the independence of such
accountants. Based on the foregoing review and discussions, the Audit and
Pricing Committee recommended to the Trustees that the audited financial
statements for the last fiscal year be included in your fund's annual
report to shareholders for the last fiscal year.

Paul L. Joskow (Chairperson)
Elizabeth T. Kennan
W. Nicholas Thorndike
W. Thomas Stephens

Officers and other information. All of the officers of your fund, with the
exception of George 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. Putnam, Lasser and Smith (nominees for Trustees of your fund),
as well as the officers of your fund, will benefit from the management
fees, underwriting commissions, custodian fees, and investor servicing fees
paid or allowed by the fund. In addition to George Putnam III and Lawrence
J. Lasser, the other officers of your fund are as follows:


<TABLE>
<CAPTION>

                                     Year first
Name (date of birth)                 elected         Business experience
Office with the fund                 to office       during past 5 years
-------------------------------------------------------------------------------------
<S>                                 <C>             <C>
Charles E. Porter (7/26/38)          1989            Managing Director,
Executive Vice President                             Putnam Investments
Treasurer & Principal Financial Officer              and Putnam Management
-------------------------------------------------------------------------------------
Patricia C. Flaherty (12/1/46)       1993            Senior Vice President,
Senior Vice President                                Putnam Investments
                                                     and Putnam Management
-------------------------------------------------------------------------------------
Karnig H. Durgarian (1/13/56)        2002            Senior Managing Director,
Vice President and Principal                         Putnam Investments
Executive Officer
-------------------------------------------------------------------------------------
Steven D. Krichmar (6/27/58)         2002            Managing Director,
Vice President and Principal                         Putnam Investments. Prior to
Financial Officer                                    July 2001, Partner,
                                                     PricewaterhouseCoopers, LLP
-------------------------------------------------------------------------------------
Michael T. Healy (1/24/58)           2000            Managing Director,
Assistant Treasurer and                              Putnam Investments
Principal Accounting Officer
-------------------------------------------------------------------------------------
Brett Browchuk (2/27/63)             1994            Managing Director,
Vice President                                       Putnam Investments
                                                     and Putnam Management
-------------------------------------------------------------------------------------
Charles E. Haldeman Jr.(10/29/48)    2002            Senior Managing Director,
Vice President                                       Putnam Investments and Putnam
                                                     Management. Prior to October
                                                     2002, Chief Executive Officer,
                                                     Lincoln National Investment
                                                     Companies, prior to January
                                                     2000, President and Chief
                                                     Operating Officer, United Asset
                                                     Management.
-------------------------------------------------------------------------------------
Beth S. Mazor (4/6/58)               2002            Senior Vice President,
Vice President                                       Putnam Investments
-------------------------------------------------------------------------------------
Richard A. Monaghan* (8/25/54)       1998            Senior Managing Director,
Vice President                                       Putnam Investments and
                                                     Putnam Retail Management Prior
                                                     to November 1998, Managing
                                                     Director, Merrill Lynch
-------------------------------------------------------------------------------------
Stephen M. Oristaglio (8/21/55)      1998            Senior Managing Director,
Vice President                                       Putnam Investments. And Putnam
                                                     Management. Prior to July 1998,
                                                     Managing Director, Swiss
                                                     Bank Corp.
-------------------------------------------------------------------------------------
Gordon H. Silver (7/3/47)            1990            Senior Managing Director,
Vice President                                       Putnam Investments, Putnam
                                                     Management and Putnam Retail
                                                     Management
-------------------------------------------------------------------------------------
Mark C. Trenchard (6/5/62)           2002            Senior Vice President,
Vice President and BSA                               Putnam Investments
Compliance Officer
-------------------------------------------------------------------------------------
Judith Cohen (6/7/45)                1993            Clerk and Assistant Treasurer,
Clerk and Assistant Treasurer                        The Putnam Funds
-------------------------------------------------------------------------------------
Kevin M. Cronin (6/13/61)            1997            Managing Director,
Vice President                                       Putnam Management
-------------------------------------------------------------------------------------
Deborah F. Kuenstner (7/9/58)        1997            Managing Director,
Vice President                                       Putnam Management
-------------------------------------------------------------------------------------
Stephen C. Peacher (6/15/64)         1990            Managing Director,
Vice President                                       Putnam Management
-------------------------------------------------------------------------------------

</TABLE>

* President of Putnam Retail Management.

Shares Outstanding of your Fund
as of April 30, 2003

Common shares:                                   13,814,046.688 shares
----------------------------------------------------------------------
5% beneficial ownership:                                          None
----------------------------------------------------------------------


This page intentionally left blank.


PUTNAM INVESTMENTS

The Putnam Funds
One Post Office Square
Boston, Massachusetts 02109
Toll-free 1-800-225-1581                              204289  5/03


P.O. BOX 9132
HINGHAM, MA  02043-9132

Your vote is important. For your convenience, you may record your voting
instructions via the internet or by returning this proxy card by mail.

1 INTERNET

Go to https://www.proxyweb.com/Putnam

*  Enter the 14-digit control number printed on your proxy card.

*  Follow the instructions on the site.

*  There is no need for you to return your proxy card.

2 MAIL

Mail in the proxy card attached below.

*  Please sign and date your proxy card.

*  Detach the card from this proxy form.

*  Return the card in the postage-paid envelope provided.

PLEASE FOLD AT PERFORATION BEFORE DETACHING

This is your PROXY CARD.

To vote by mail, please record your voting instructions on this proxy
card, sign it below, and return it promptly in the envelope provided.
Your vote is important.

Proxy for a meeting of shareholders to be held on August 21, 2003, for
PUTNAM HIGH INCOME BOND FUND.

*** CONTROL  NUMBER:  999   999   999   999   99  ***

This proxy is solicited on behalf of the Trustees of the Fund.

The undersigned shareholder hereby appoints John A. Hill, Robert E.
Patterson and W. Nicholas Thorndike, and each of them separately,
Proxies, with power of substitution, and hereby authorizes them to
represent such shareholder and to vote, as designated on the reverse
side, at the meeting of shareholders of PUTNAM HIGH INCOME BOND FUND on
August 21, 2003 at 11:00 a.m., Boston time, and at any adjournments
thereof, all of the shares of the fund that the undersigned shareholder
would be entitled to vote if personally present.


PLEASE BE SURE TO SIGN AND DATE THIS PROXY.

-------------------------------------------
Shareholder/Co-owner sign(s) here      Date

Please sign your name exactly as it appears on this card. If your are a
joint owner, each owner should sign. When signing as executor,
administrator, attorney, trustee, or guardian, or as custodian for a minor,
please give your full title as such. If you are signing for a corporation,
please sign the full corporate name and indicate the signer's office. If
you are a partner, sign in the partnership name.

High Inc Bond-R

Has your address changed?

Please use this form to notify us of any change in address or telephone
number or to provide us with your comments.

Detach this form from the proxy card and return it with your signed card
in the enclosed envelope.

Name
    -------------------------------------------------------------
Street
      -----------------------------------------------------------
City
    -------------------------------------------------------------
State
     ------------------------------------------------------------
Zip
   --------------------------------------------------------------
Telephone
         --------------------------------------------------------

Do you have any comments?

------------------------------------------------------------------------

------------------------------------------------------------------------

------------------------------------------------------------------------

PLEASE FOLD AT PERFORATION BEFORE DETACHING

DEAR SHAREHOLDER:

Your vote is important. Please help us to eliminate the expense of
follow-up mailings by recording your voting instructions via the
Internet or by signing and returning this proxy card. A postage-paid
envelope is enclosed for your convenience.

Thank you!

If you complete and sign the proxy, we'll vote it exactly as you tell
us. The Proxies are authorized to vote in their discretion upon any
matters as may properly come before the meeting or any adjournments of
the meeting. If you simply sign the proxy, or fail to provide your
voting instructions, the Proxies will vote in the same manner as the
Trustees recommend.

Please vote by filling in the appropriate box below.

FOR
fixing the number
of Trustees as
proposed and
electing all the
nominees (except
as marked to the
contrary at left)

WITHHOLD
authority to
vote for all
nominees

THE TRUSTEES RECOMMEND A VOTE FOR FIXING THE NUMBER OF TRUSTEES AND
ELECTING ALL OF THE NOMINEES:

1. Proposal to fix the number of Trustees and elect all nominees.

The nominees for Trustees are: J.A. Baxter, C.B. Curtis, J.A. Hill,
R.J. Jackson, P.L. Joskow, E.T. Kennan, L.J. Lasser, J.H. Mullin, III,
R.E. Patterson, G. Putnam, III, A.J.C. Smith, W.T. Stephens and
W.N. Thorndike.

----------------------------------------------------------------------------
To withhold authority to vote for one or more of the nominees, write the
name(s) of  the nominee(s) above.

Note: If you have questions on the proposal, please call 1-800-225-1581.

High Inc Bond

</TEXT>
</DOCUMENT>
