Pursue tax-exempt income with an active research-driven approach.


Pursue a tax-smart strategy with municipal bond funds.

Putnam has a large and skilled research team dedicated to municipal bonds.

Over 40 years of experience investing in municipal bonds.

Managing $6.2 billion in tax exempt assets.

A large and skilled research team

Our experts have diverse skills in credit to select attractive securities and optimize portfolios.

7   research analysts
2   portfolio construction specialists
21   credit team members

Veteran portfolio managers

Paul M. Drury, CFA, with 33 years of experience, directs Putnam's tax-exempt effort, including security selection, sector rotation, and duration management.

Garrett L. Hamilton, CFA, with 16 years of experience, has responsibilities across the funds with particular emphasis on short- and intermediate-term strategies.

A disciplined process for selecting bonds to own in the funds

Sources: Putnam, as of 3/31/22; Bloomberg Index Services Limited. Three-month CD rate data sourced from Bloomberg. Yields for Treasuries and municipal bonds are represented by the average "yield to worst" — a calculation of the lowest possible yield generated without defaulting — of the Bloomberg U.S. Treasury Index and the Bloomberg Municipal Bond Index, respectively. Yields on three-month CDs are the national average as reported by Bloomberg. Unlike other investments that incur more risk, the interest and principal value of CDs are fixed and are insured by the FDIC up to $250,000. Bonds incur investment risk; CDs do not. Income from municipal bonds may be subject to the alternative minimum tax. Annual after-tax income is based on a maximum 40.80% federal income tax rate. This rate reflects the Tax Cuts and Jobs Act and includes the 3.80% Medicare surtax. The income data is based on a hypothetical $100,000 investment.

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Explore our funds

We offer five national funds, seven state funds, and two closed-end funds.

State tax-exempt funds 5-year ann. ret. at NAV 30-day SEC yield Overall Morningstar RatingTM
as of 05/31/22
California Tax Exempt Income Fund 1.49% 3.24% (out of 96 in category)
Massachusetts Tax Exempt Income Fund 1.08% 2.99% (out of 45 in category)
Minnesota Tax Exempt Income Fund 1.19% 2.55% (out of 43 in category)
New Jersey Tax Exempt Income Fund 1.70% 2.92% (out of 49 in category)
New York Tax Exempt Income Fund 1.10% 3.33% (out of 71 in category)
Ohio Tax Exempt Income Fund 1.16% 2.62% (out of 23 in category)
Pennsylvania Tax Exempt Income Fund 1.47% 2.97% (out of 52 in category)
National funds 5-year ann. ret. at NAV 30-day SEC yield Overall Morningstar RatingTM
as of 05/31/22
Intermediate-Term Municipal Income Fund 1.67% 2.30% with subsidy
1.92% without subsidy
(out of 273 in category)
Short-Term Municipal Income Fund 1.10% 1.92% with subsidy
1.64% without subsidy
(out of 210 in category)
Strategic Intermediate Municipal Fund 2.12% 2.33% (out of 273 in category)
Tax Exempt Income Fund 1.44% 3.13% (out of 151 in category)
Tax-Free High Yield Fund 2.19% 3.87% (out of 189 in category)
Closed-end funds 5-year ann. ret. @ NAV
as of 06/30/22
Dividend rate @ NAV
as of 06/30/22
Managed Municipal Income Trust 1.61% 5.8% NYSE: PMM
Municipal Opportunities Trust 2.13% 5.47% NYSE: PMO

Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will vary, and you may have a gain or loss when you sell your shares.

Performance assumes reinvestment of distributions and does not account for taxes. Returns before sales charge do not reflect the current maximum sales charges as indicated below. Had the sales charge been reflected, returns would be lower.

Market outlook and resources

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Bond market swings mirror investor unease

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Fixed Income OutlookFIO | Q2 2022
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Data as of 12/31/21. Sources: U.S. Treasury, Barclays Municipal Credit Research, Standard & Poor's, The Tax Foundation, and U.S. Census (estimated data). State municipal bond yields represented the yield to worst of the Barclays Municipal Bond Index from that state. Muni yield figures do not reflect the potential effects of the alternative minimum tax. Credit ratings are by Standard & Poor's, and are subject to change. While all bonds have risks, municipal bonds may have a higher level of credit risk as compared with government bonds and CDs. Yields shown are not indicative of the performance of any particular investment, and it is not possible to invest directly in an index. Past performance is not indicative of future results.

The Morningstar Rating™ for funds, or "star rating," is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and ten-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36 to 59 months of total returns, 60% five-year rating/40% three-year rating for 60 to 119 months of total returns, and 50% ten-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the ten-year overall star rating formula seems to give the most weight to the ten-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings do not take into account the effects of sales charges and loads.