Webinar | Putnam closed-end funds update: PIM, PPT, PMO, and PMM | May 2, 2023

Managed Municipal Income Trust (Class A)  (NYSE: PMM)

A closed-end fund seeking high current tax-free income by investing primarily in a levered portfolio of municipal bonds

Highlights

Objective

The fund seeks a high level of current income exempt from federal tax. It invests in a diversified portfolio of tax-exempt municipal securities. The fund uses leverage by issuing preferred shares to enhance returns, which involves risk and may increase the volatility of the net asset value (NAV).

Strategy and process

  • Tax-advantaged income The fund pursues above-average income free from federal income tax by investing in higher-yielding, lower-rated municipal bonds.
  • Focus on performance The portfolio managers select bonds that offer attractive return potential relative to risk and position the portfolio based on Putnam's fundamental research and risk management.
  • Leading research Members of Putnam's fixed income organization have a range of skills to analyze the credit risk of below-investment grade bonds and help build a well-diversified portfolio of tax-exempt bonds.

Daily pricing and assets as of 05/21/24

Ticker NYSE: PMM
Net asset value $6.73
Net asset value change -0.01
Market price $6.03
Market price change 0.01
Discount/Premium -10.40%
Dividend rate at net asset value 4.24%
Dividend rate at market price 4.74%
Net assets and outstanding shares Download CSV

Fund facts as of 04/30/24

Inception date
02/24/89
Total net assets
$401.30M
Dividend frequency
Monthly
Number of holdings
326
Product status
Trades on secondary market
Common share CUSIP
746823103
Ticker
NYSE: PMM
Fiscal year-end
October
Category
Closed End
Turnover (fiscal year end)
45%
AMT
8.36%

Management team

Portfolio Manager
Portfolio Manager


Literature

Fund documents

Annual Report (PDF)
Semiannual Report (PDF)
Fact Sheet (PDF)

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Performance

  • Performance as of 03/31/24

  • Annual performance as of 03/31/24

Last month Last quarter Year to date 1 yr. 3 yrs. 5 yrs. 10 yrs.
Net asset value 0.80% 1.83% 1.83% 8.06% -1.48% 1.74% 4.03%
Market price -2.05% -0.32% -0.32% 2.57% -4.97% 0.62% 3.91%
Comparative index: Bloomberg Municipal Bond Index†
Net asset value 0.00%-0.39%-0.39%3.13%-0.41%1.59%2.66%

Data is historical. Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Investment return at both net asset value and market price as well as principal value will fluctuate, and you may have a gain or a loss when you sell your shares. Performance assumes reinvestment of distributions and does not account for taxes. Performance at net asset value reflects the deduction of all management and administrative fees. 12b-1 (distribution) fees are not applicable to this fund.

Performance snapshot

  Net asset value Market price
1 mt. -2.16% -1.95%
as of 04/30/24
YTD 1.74% 0.74%
as of 05/21/24

Lipper rankings as of 04/30/24

Time period Rank/Funds in category Percentile ranking
1 yr. 6/19 30%
3 yrs. 4/14 27%
5 yrs. 5/13 36%
10 yrs. 3/12 24%
Lipper category: High Yield Municipal Debt Funds

Distribution history (past 12 mts.)

Ex-distribution date Distribution amount
per common share
04/24/24 $00.0238
03/22/24 $00.0238
02/23/24 $00.0238
01/24/24 $00.0238
12/22/23 $00.0238
11/24/23 $00.0238
10/24/23 $00.0238
09/22/23 $00.0238
08/24/23 $00.0238
07/24/23 $00.0238
06/23/23 $00.0238
05/24/23 $00.0238

Distributions may be comprised of ordinary and/or tax-exempt income, net capital gains and/or a return of capital of your investment in the Fund. You should not draw any conclusions about the Fund’s investment performance from the amount of this distribution or from the terms of the Fund’s Distribution Policy. Distribution rates represent the latest declared regular distribution, annualized, relative to the most recent market price and NAV. Special distributions, including special capital gains distributions, are not included in the calculation.

Risk characteristics 

Average effective maturity 15.89
Average stated maturity 20.57
Average effective duration
without leverage
N/A
Average effective duration
with leverage
9.83
Average yield to maturity 4.97
Average coupon 4.42

Data is historical. Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Investment return at both net asset value and market price as well as principal value will fluctuate, and you may have a gain or a loss when you sell your shares. Performance assumes reinvestment of distributions and does not account for taxes. Performance at net asset value reflects the deduction of all management and administrative fees. 12b-1 (distribution) fees are not applicable to this fund.

Lipper rankings are based on total return without sales charge relative to all share classes of funds with similar objectives as determined by Lipper. Past performance is not indicative of future results.

Morningstar Ratings for the specific share classes only; other classes may have different performance characteristics.

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 3-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 Morningstar Rating does not include any adjustment for sales loads. 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 3-, 5-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% 3-year rating for 36–59 months of total returns, 60% 5-year rating/40% 3-year rating for 60–119 months of total returns, and 50% 10-year rating/30% 5-year rating/20% 3-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent 3-year period actually has the greatest impact because it is included in all three rating periods.

Some of Morningstar's proprietary calculations, including the Morningstar Rating™, are not customarily calculated based on adjusted historical returns. However, for new share classes/channels, Morningstar may calculate an extended performance Morningstar Rating that is based, in part, on adjusted historical (or "pre-inception") returns for periods prior to the inception of the share class of the fund shown herein ("Report Share Class").

The extended performance is calculated by creating a performance stream consisting of the Report Share Class and older share class(s). Morningstar adjusts the historical total returns of the older share class(es) of a fund to reflect higher expenses in the Report Share Class. Morningstar does not hypothetically adjust returns upwards for lower expenses.

The extended performance Morningstar Risk-Adjusted Return is then calculated for 3-, 5-, and 10-year time periods and used to determine the extended performance Morningstar Rating. The extended performance Morningstar Rating for this fund does not affect the retail fund data published by Morningstar, as the bell curve distribution on which the ratings are based includes only funds with actual returns. The Overall Morningstar Rating for multi-share open-end funds will be either based on actual performance only or extended performance only. Once the share class turns three years old, the Overall Morningstar Rating will be based on actual ratings only. The Overall Morningstar Rating for multi-share variable annuities is based on a weighted average of any ratings that are available.

While the inclusion of pre-inception data, in the form of extended performance, can provide valuable insight into the probable long-term behavior of newer share classes of a fund, investors should be aware that an adjusted historical return can only provide an approximation of that behavior. For example, the fee structures of a retail share class will vary from that of an institutional share class, as retail shares tend to have higher operating expenses and sales charges. These adjusted historical returns are not actual returns. The underlying investments in the share classes used to calculate the pre-performance string will likely vary from the underlying investments held in the fund after inception. Calculation methodologies utilized by Morningstar may differ from those applied by other entities, including the fund itself.

© 2023 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

The up-market capture ratio is used to evaluate how well an investment manager performed relative to an index during periods when that index has risen. The ratio is calculated by dividing the manager’s returns by the returns of the index during the up-market, and multiplying that factor by 100. The down-market capture ratio is used to evaluate how well an investment manager performed relative to an index during periods when that index has dropped. The ratio is calculated by dividing the manager’s returns by the returns of the index during the down-market and multiplying that factor by 100.


Holdings

Dallas Tx Area Rapid 05.0000 12/01/2045 1.89%
Dt Of Columbia 05.0000 01/01/2045 1.84%
San Francisco Aprt-A 04.0000 05/01/2049 1.76%
W Virginia St H-Ser B 06.0000 09/01/2048 1.49%
Jpm-Drivers-Xf1243 P/P 144a 01.1900 12/01/2051 1.39%
Missouri St-A 04.0000 05/15/2048 1.34%
Alaska St Indl Dev-A 04.0000 10/01/2044 1.17%
Pr Sales Tax Fing-A1 04.7500 07/01/2053 1.17%
Met Trans Auth-A-Ref 05.5000 11/15/2047 1.11%
Coweta Co Dev Auth 05.0000 07/01/2044 1.04%
Top 10 holdings, percent of portfolio 14.18%



Maturity detail

0 - 1 yr. 4.91%
1 - 5 yrs. 9.80%
5 - 10 yrs. 22.97%
10 - 15 yrs. 10.45%
Over 15 yrs. 51.86%

Quality rating

AAA 2.09%
AA 16.98%
A 14.52%
BBB 21.29%
BB 13.64%
B 0.35%
Not Rated 28.39%
Cash and net other assets 2.74%

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Consider these risks before investing: Lower-rated bonds may offer higher yields in return for more risk. Bond investments are subject to interest-rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments). Interest-rate risk is generally greater for longer-term bonds, and credit risk is generally greater for below-investment-grade bonds. Unlike bonds, funds that invest in bonds have fees and expenses.

The value of investments in the fund’s portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general economic, political, or financial market conditions; investor sentiment and market perceptions; government actions; geopolitical events or changes; and factors related to a specific issuer, geography, industry, or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund’s portfolio holdings. The fund's shares trade on a stock exchange at market prices, which may be lower than the fund's net asset value.

Our investment techniques, analyses, and judgments may not produce the outcome we intend. The investments we select for the fund may not perform as well as other securities that we do not select for the fund. We, or the fund’s other service providers, may experience disruptions or operating errors that could have a negative effect on the fund. You can lose money by investing in the fund.

Sector weightings as of 04/30/24

Health care 23.24%
Education 20.11%
Land 8.45%
Local Debt 6.55%
State Debt 6.41%
Housing 5.79%
Other 5.77%
Special Tax 5.16%
Transportation 5.09%
 
Other
13.43%
Utilities 3.15%
Tobacco 2.75%
Cash and net other assets 2.74%
Financials 2.43%
Prerefunded 1.81%
Industrials 0.55%

†The Bloomberg Municipal Bond Index is an unmanaged index of long-term fixed-rate investment-grade tax-exempt bonds. You cannot invest directly in an index.

Consider these risks before investing: Lower-rated bonds may offer higher yields in return for more risk. Bond investments are subject to interest-rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments). Interest-rate risk is generally greater for longer-term bonds, and credit risk is generally greater for below-investment-grade bonds. Unlike bonds, funds that invest in bonds have fees and expenses.

The value of investments in the fund’s portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general economic, political, or financial market conditions; investor sentiment and market perceptions; government actions; geopolitical events or changes; and factors related to a specific issuer, geography, industry, or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund’s portfolio holdings. The fund's shares trade on a stock exchange at market prices, which may be lower than the fund's net asset value.

Our investment techniques, analyses, and judgments may not produce the outcome we intend. The investments we select for the fund may not perform as well as other securities that we do not select for the fund. We, or the fund’s other service providers, may experience disruptions or operating errors that could have a negative effect on the fund. You can lose money by investing in the fund.