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Minnesota Tax Exempt Income Fund (Class Y)  (PMNYX)

Seeking a high level of tax-free income

Minnesota Tax Exempt Income Fund received an  Overall Morningstar Rating  of  

Highlights

Objective

The fund seeks as high a level of current income exempt from federal income tax and Minnesota personal income tax as we believe is consistent with preservation of capital.

Strategy and process

  • Tax-advantaged income: The fund offers Minnesota residents the potential for high current income that is free from federal income tax and Minnesota State personal income taxes.
  • Focus on performance: The portfolio managers seek to provide a competitive yield through a combination of careful security selection and portfolio construction strategies.
  • A diversified portfolio: A broadly diversified portfolio enables the managers to pursue current tax-free income opportunities while managing risk and seeking to preserve capital.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $9.34
0.00% | $0.00
$9.35
05/16/19
$8.94
11/06/18
Historical fund price

Consistency of positive performance over five years

Performance represents 5-year returns in rolling quarter-end periods since inception.

Performance shown does not reflect the effects of any sales charges. Note that returns of 0.00% are counted as positive periods. For complete fund performance, please click on the performance tab.

7.88%

Best 5-year annualized return

(for period ending 12/31/95)


1.50%

Worst 5-year annualized return

(for period ending 12/31/08)


4.84%

Average 5-year annualized return


Fund facts as of 04/30/19

Total net assets
$119.85M
Turnover (fiscal year end)
17%
Dividend frequency (view rate)
Monthly
Number of holdings
165
Fiscal year-end
May
CUSIP / Fund code
74683M506 / 1827
Inception date
01/02/08
Category
Tax-free Income
Open to new investors
Ticker
PMNYX

Management team

Portfolio Manager
Portfolio Manager


Literature


Munis feel knock-on effects of tax reform
The municipal bond market will likely see a reduction in supply in 2018 because of certain provisions in the new tax reform law.
Munis feel knock-on effects of tax reform
The municipal bond market will likely see a reduction in supply in 2018 because of certain provisions in the new tax reform law.

Performance

  • Total return (%) as of 03/31/19

  • Annual performance as of 03/31/19

Annualized Total return (%) as of 03/31/19

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge 4.11% 2.32% 3.25% 4.44%
After sales charge N/A N/A N/A N/A
Bloomberg Barclays Municipal Bond Index 5.38%2.71%3.73%4.72%

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. Returns at public offering price (after sales charge) for class A and class M shares reflect the current maximum initial sales charges of 5.75% and 3.50% for equity funds and Putnam Multi-Asset Absolute Return Fund, 4.00% and 3.25% for income funds and 2.25% and 0.75% for Putnam Floating Rate Income Fund, Short-Term Municipal Income, Short Duration Bond Fund, and Fixed Income Absolute Return Fund, respectively. Class B share returns reflect the applicable contingent deferred sales charge (CDSC), which is 5% in the first year, declining to 1% in the sixth year, and is eliminated thereafter (except for Putnam Floating Rate Income Fund, which is 3% in the first year, declining to 1% in the fourth year, and is eliminated thereafter). Class C shares reflect a 1% CDSC the first year that is eliminated thereafter. Performance for class B, C, M, N, R, and Y shares prior to their inception is derived from the historical performance of class A shares, adjusted for the applicable sales charge (or CDSC) and, except for class Y shares, the higher operating expenses for such shares (with the exception of Putnam Tax-Free High Yield Fund and Putnam AMT-Free Municipal Fund, which are based on the historical performance of class B shares). Returns at public offering price (after sales charge) for class N shares reflect the current maximum initial sales charge of 1.50%. Class R5/R6 shares, available to qualified employee-benefit plans only, are sold without an initial sales charge and have no CDSC. Class Y shares are generally only available for corporate and institutional clients and have no initial sales charge. Performance for Class R5/R6 shares before their inception are derived from the historical performance of class Y shares, which have not been adjusted for the lower expenses; had they, returns would have been higher. Class A and M shares of Putnam money market funds have no initial sales charge. For a portion of the periods, some funds had expense limitations or had been sold on a limited basis with limited assets and expenses, without which returns would be lower.

Performance snapshot

  Before sales charge After sales charge
1 mt. as of 04/30/19 0.44% -
YTD as of 05/24/19 3.86% -

Yield

Distribution rate before sales charge
as of 05/24/19
2.59%
Distribution rate after sales charge
as of 05/24/19
2.59%
30-day SEC yield as of 04/30/19 1.98%

Risk-adjusted performance as of 04/30/19

Sharpe ratio (3 yrs.) 0.40
Information ratio (3 yrs.) -0.36

Volatility as of 04/30/19

Standard deviation (3 yrs.) 2.73%
Beta 0.79
R-squared 0.97

Lipper rankings as of 04/30/19

Time period Rank/Funds in category Percentile ranking
1 yr. 17/39 43%
3 yrs. 10/35 28%
5 yrs. 13/35 37%
10 yrs. 7/26 26%
Lipper category: Minnesota Municipal Debt Funds

Morningstar Ratings as of 04/30/19

Time period Funds in category Morningstar Rating
Overall 43
3 yrs. 43
5 yrs. 43
10 yrs. 30
Morningstar category: Muni Minnesota

Distributions

Accrual days 30
Accrual start date 04/01/19
Accrual end date 04/30/19
Payable date 04/30/19
Non-taxable income $0.021140895
Extra taxable income --

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.

The Morningstar RatingTM 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 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-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 three-year period actually has the greatest impact because it is included in all three rating periods.

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.


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** FundVisualizer comparison based on Putnam fund versus the largest fund in its Morningstar category.


Holdings

Top 10 holdings as of 04/30/19

Minnesota St 05.0000 06/01/2037 2.88%
Minneapolis Hlth-A 05.0000 11/15/2034 2.26%
Hennepin Co Regl -A 05.0000 12/01/2038 2.04%
Univ Of Mn Rgts-A 05.0000 09/01/2041 1.98%
Minnesota St-A 05.0000 08/01/2019 1.70%
Hennepin Co-B-Ref 02.1000 12/01/2038 1.66%
Hennepin Co-C 05.0000 12/01/2034 1.52%
Sthrn Mn Pwr Cab -A 00.0000 01/01/2024 1.51%
Wstrn Mn Muni Pwr-A 05.0000 01/01/2049 1.50%
Univ Of Mn Rgts-A 05.0000 09/01/2039 1.49%
Top 10 holdings, percent of portfolio 18.54%

Full portfolio holdings as of 03/31/19

MINNESOTA ST 05.0000 06/01/2037 2.90%
MINNEAPOLIS HLTH-A 05.0000 11/15/2034 2.27%
HENNEPIN CO REGL -A 05.0000 12/01/2038 2.05%
UNIV OF MN RGTS-A 05.0000 09/01/2041 1.98%
MINNESOTA ST-A 05.0000 08/01/2019 1.71%
HENNEPIN CO-C 05.0000 12/01/2034 1.53%
STHRN MN PWR CAB -A 00.0000 01/01/2024 1.52%
WSTRN MN MUNI PWR-A 05.0000 01/01/2049 1.50%
STHRN MN MUNI PWR AGY 05.0000 01/01/2042 1.49%
UNIV OF MN RGTS-A 05.0000 09/01/2039 1.49%
SAINT CLOUD MN HLTH C 05.0000 05/01/2046 1.45%
RICHFIELD ISD 280-A 04.0000 02/01/2036 1.37%
ROCHESTER HLTH CARE 04.0000 11/15/2048 1.36%
PRIOR LAKE ISD 719-A 05.0000 02/01/2031 1.25%
CLOQUET ISD 94-B 05.0000 02/01/2027 1.09%
MINNEAPOLIS ARPTS-B-R 05.0000 01/01/2022 1.07%
HENNEPIN CO REGL -A 05.0000 12/01/2037 1.03%
MET COUNCIL-REF-C 04.0000 03/01/2025 1.01%
UNIV OF MN RGTS-A 05.0000 04/01/2035 1.01%
UNIV OF MN RGTS-A 05.0000 04/01/2041 0.99%
DULUTH ECO DEV AUTH-A 05.2500 02/15/2058 0.96%
ST PAUL HSG-A-REF 05.0000 07/01/2033 0.96%
WSTRN MN MUNI PWR AGY 05.0000 01/01/2031 0.96%
MINNESOTA ST-A 05.0000 06/01/2038 0.95%
ROCHESTER ELEC-B 05.0000 12/01/2043 0.95%
WSTRN MUNI PWR-A-REF 05.0000 01/01/2030 0.94%
MINNESOTA ST-B 05.0000 10/01/2030 0.93%
MN HGR EDU FACS-8-K 05.0000 03/01/2037 0.93%
CENTRAL MN PWR AGY 05.0000 01/01/2032 0.92%
MINNESOTA ST HGR EDU 05.0000 05/01/2047 0.92%
MN ST CLG-FUND-A 05.0000 10/01/2031 0.92%
MN ST CLGS & UNIV-A 04.0000 10/01/2025 0.92%
JORDAN ISD 717-UNREF 05.0000 02/01/2028 0.91%
ST PAUL HSG-A-SYS 04.0000 11/15/2036 0.91%
ST PAUL HSG-A-SYS 04.0000 11/15/2037 0.91%
WILLMAR-A-REF 05.0000 02/01/2021 0.90%
MINNESOTA HGR ED 04.0000 11/01/2037 0.89%
MN HGR EDU FACS-REF 04.0000 03/01/2048 0.89%
ROCHESTER HLTH 05.8750 07/01/2030 0.89%
UNIV MN SER A 05.5000 07/01/2021 0.89%
SAINT CLOUD MN HLTH C 04.0000 05/01/2049 0.88%
MINN & ST PAUL ARPT-A 05.0000 01/01/2035 0.87%
MN AGRIC-C1-HLTH CARE 05.0000 02/15/2030 0.87%
MAPLE GROVE HLTH-REF 05.0000 05/01/2030 0.86%
ST CLOUD HLTH 05.3750 05/01/2031 0.86%
ST LOUIS PK-REF 05.7500 07/01/2039 0.86%
MINNEAPOLIS ETC-B-REF 05.0000 01/01/2029 0.84%
MINNESOTA MUNI PWR-A 05.0000 10/01/2034 0.83%
MINNEAPOLIS ARPT-C 05.0000 01/01/2036 0.82%
MINNEAPOLIS ARPT-C 05.0000 01/01/2037 0.82%
MINNESOTA ST HGR EDU 04.0000 10/01/2036 0.81%
MINNESOTA-A 05.0000 08/01/2035 0.74%
MN HGR EDU FACS-8-L 05.0000 04/01/2035 0.74%
ROCHESTER ELEC-A-REF 05.0000 12/01/2035 0.73%
MINNEAPOLIS ETC-B-REF 05.0000 01/01/2023 0.69%
WOODBURY-A 03.0000 02/01/2022 0.68%
MN ST HGR EDU FACS-Q 05.0000 10/01/2032 0.67%
ROCHESTER HLTH CARE-E 05.0000 11/15/2038 0.66%
SAINT PAUL MN HSG & R 05.0000 11/15/2040 0.66%
MN HGR ED-7F-ST OLAF 04.5000 10/01/2030 0.65%
MN HGR ED-H-ST SCHOLA 05.1250 12/01/2040 0.65%
ST PAUL PORT-1-REGION 05.0000 08/01/2036 0.64%
HASTINGS SD 200-A 00.0000 02/01/2030 0.62%
SHAKOPEE HLTHCARE-REF 05.0000 09/01/2034 0.62%
CENTER CITY HLTH 05.0000 11/01/2041 0.61%
ROCHESTER HLTHCR FAC 05.0000 07/01/2033 0.60%
ST PAUL HSG & REDEV-A 04.0000 10/01/2033 0.60%
CIRCLE PINES SD-CABS 00.0000 02/01/2025 0.56%
ROCHESTER HLTH CARE 05.0000 11/15/2036 0.56%
HENNEPIN CO-A 05.0000 12/01/2038 0.53%
MINNESOTA ST HGR EDU 04.0000 10/01/2037 0.51%
MN HSG FIN AGY-E-AMT 03.5000 01/01/2046 0.51%
ROSEMOUNT ISD 196-A 05.0000 02/01/2027 0.51%
CHASKA ISD112-A 05.0000 02/01/2031 0.50%
MAPLE GROVE HLTH-REF 05.0000 05/01/2031 0.50%
MAPLE GROVE HLTH-REF 05.0000 05/01/2032 0.50%
ROCHESTER ELEC-A-REF 05.0000 12/01/2036 0.50%
WSTRN MN MUNI PWR AGY 05.0000 01/01/2032 0.50%
MINNESOTA MUNI PWR-A 05.0000 10/01/2035 0.49%
S MN PWR AGY-A-REF 05.0000 01/01/2036 0.49%
DEEPHAVEN CHTR SCH-A 05.1250 07/01/2033 0.48%
LAKEVILLE ISD 194-B 04.0000 02/01/2027 0.48%
MN HGR EDU-REF 8-H 05.0000 10/01/2022 0.48%
ST PAUL HSG-A-REF 05.0000 07/01/2032 0.48%
CENTER CITY HTLH CARE 05.0000 11/01/2044 0.47%
MINNESOTA GEN REV-REF 05.0000 03/01/2029 0.46%
MOORHEAD EDUCTNL-REF 05.0000 12/01/2040 0.46%
NEW LONDON ETC SD345 04.0000 02/01/2031 0.46%
ST PAUL PARK SEN HSG 05.0000 09/01/2042 0.46%
BURNSVILLE ISD 191-A 04.0000 02/01/2033 0.45%
DEEPHAVEN CHTR-REF-A 05.2500 07/01/2040 0.45%
MINNEAPOLIS HLTH-A 04.0000 11/15/2038 0.45%
MINNESOTA ST HGR EDU 04.0000 03/01/2037 0.45%
NTHRN MUN PWR-SER A2 05.0000 01/01/2024 0.45%
ST PAUL MN HSG & REDE 05.0000 12/01/2037 0.45%
HAM LAKE CHRT SCH-A 05.0000 07/01/2047 0.44%
MINNEAPOLIS HLTH-A 05.2500 08/15/2035 0.44%
MINNEAPOLIS STUD HSG 05.0000 08/01/2053 0.44%
MN HGR ED-A-UNIV ST T 05.0000 10/01/2039 0.44%
MN ST HGR ED FACS AUT 05.0000 10/01/2031 0.44%
MN ST-SER B 04.0000 08/01/2026 0.44%
ROCHESTER HLTH CARE-D 05.0000 11/15/2038 0.44%
ST PAUL HSG & REDEV-A 05.0000 07/01/2033 0.43%
ST CLOUD HLTH-A-PRERF 05.1250 05/01/2030 0.42%
NTRHN MUN PWR 05.0000 01/01/2041 0.39%
FOREST LAKE-A 04.5000 08/01/2026 0.37%
MN HGR EDU FACS-A-REF 04.0000 10/01/2034 0.37%
MN HGR EDU FACS-A-REF 04.0000 10/01/2035 0.37%
SARTELL ISD CAB-B 00.0000 02/01/2034 0.37%
MINNESOTA ST MUNI PWR 05.0000 10/01/2029 0.36%
MN HGR EDU-7S 03.0000 05/01/2022 0.36%
MN HFA NON AMT 05.1000 01/01/2040 0.35%
WINONA HLTH CARE-REF 05.0000 07/01/2034 0.35%
OTSEGO CHRT SCH-A 05.0000 09/01/2044 0.34%
COLOGNE CHTR SCH-A 05.0000 07/01/2034 0.30%
ST PAUL HSG-A-REF 04.6250 03/01/2043 0.28%
MN HGR ED-SEVEN M 05.0000 03/01/2031 0.26%
BAYTOWN TWP MN LEASE 04.0000 08/01/2036 0.25%
MN MUNI PWR AGY 05.0000 10/01/2033 0.25%
NTRHN MUN PWR-REF 05.0000 01/01/2028 0.25%
MINNEAPOLIS HLTH-REF 05.0000 11/15/2044 0.24%
NJ ECON DEV AUTH-AMT 05.3750 01/01/2043 0.24%
SHAKOPEE HLTHCARE-REF 05.0000 09/01/2029 0.24%
ST PAUL HSG & REDEV-A 06.6250 09/01/2042 0.24%
INTERMEDIATE SD 287 04.0000 05/01/2027 0.23%
NTRHN MUN PWR 05.0000 01/01/2033 0.23%
PUB FIN AUTH-A 05.7500 11/15/2044 0.23%
WARREN HLTHCR-A-REF 05.0000 07/01/2040 0.23%
FOREST LAKE-A 05.5000 08/01/2036 0.22%
HAM LAKE CHRT SCH-A 05.0000 11/01/2036 0.22%
ROCHESTER HLTH CARE 04.0000 11/15/2041 0.22%
ST PAUL HSG & REDEV-A 05.0000 07/01/2035 0.22%
BETHEL CHRT SCH-A 04.2500 07/01/2047 0.21%
NTRHN MUN PWR 05.0000 01/01/2032 0.21%
NTRHN MUN PWR 05.0000 01/01/2034 0.21%
ST PAUL HSG & RED-A 04.0000 09/01/2036 0.21%
NTRHN MUN PWR 05.0000 01/01/2031 0.20%
WOODBURY CHRT SCH-A 05.0000 12/01/2032 0.20%
WOODBURY CHRT SCH-A 05.0000 12/01/2027 0.19%
NTRHN MUN PWR 05.0000 01/01/2036 0.18%
MN ST HGR EDU FACS-7R 04.0000 12/01/2019 0.17%
NTRHN MUN PWR 05.0000 01/01/2035 0.17%
COFINA 2007A SR BDS 00.0000 08/01/2044 0.16%
ST PAUL PORT AUTH-7 P/P 144A 04.5000 10/01/2037 0.16%
FRANKLIN CNTY OH HLTH 05.0000 11/15/2023 0.14%
CHICAGO MTR FUEL TAX 05.0000 01/01/2030 0.09%
MINNEAPOLIS REV 04.0000 06/01/2027 0.09%
MINNEAPOLIS REV 04.0000 06/01/2031 0.09%
NASSAU CO ECON ASSIST 05.0000 07/01/2033 0.09%
MN HGR EDU FACS-8N 04.0000 10/01/2026 0.08%
COFINA 2007A SR BDS 00.0000 08/01/2044 0.05%
JORDAN ISD 717-PRERF 05.0000 02/01/2028 0.04%
ST CLOUD HLTH-A-UNREF 05.1250 05/01/2030 0.03%
MINNESOTA ST-A-PREREF 05.0000 10/01/2024 0.01%

Prior top 10 holdings

Top 10 holdings as of 04/30/19
Minnesota St 05.0000 06/01/2037
Minneapolis Hlth-A 05.0000 11/15/2034
Hennepin Co Regl -A 05.0000 12/01/2038
Univ Of Mn Rgts-A 05.0000 09/01/2041
Minnesota St-A 05.0000 08/01/2019
Hennepin Co-B-Ref 02.1000 12/01/2038
Hennepin Co-C 05.0000 12/01/2034
Sthrn Mn Pwr Cab -A 00.0000 01/01/2024
Wstrn Mn Muni Pwr-A 05.0000 01/01/2049
Univ Of Mn Rgts-A 05.0000 09/01/2039
Holdings represent 18.54% of portfolio
Top 10 holdings as of 03/31/19
Minnesota St 05.0000 06/01/2037
Minneapolis Hlth-A 05.0000 11/15/2034
Hennepin Co Regl -A 05.0000 12/01/2038
Univ Of Mn Rgts-A 05.0000 09/01/2041
Minnesota St-A 05.0000 08/01/2019
Hennepin Co-B-Ref 01.4600 12/01/2038
Hennepin Co-C 05.0000 12/01/2034
Sthrn Mn Pwr Cab -A 00.0000 01/01/2024
Wstrn Mn Muni Pwr-A 05.0000 01/01/2049
Univ Of Mn Rgts-A 05.0000 09/01/2039
Holdings represent 18.63% of portfolio
Top 10 holdings as of 02/28/19
Minnesota St 05.0000 06/01/2037
Minneapolis Hlth-A 05.0000 11/15/2034
Hennepin Co Regl -A 05.0000 12/01/2038
Univ Of Mn Rgts-A 05.0000 09/01/2041
Minneapolis Hlth-B1-A 01.6500 11/15/2035
Minnesota St-A 05.0000 08/01/2019
Hennepin Co-B-Ref 01.7200 12/01/2038
Sthrn Mn Pwr Cab -A 00.0000 01/01/2024
Hennepin Co-C 05.0000 12/01/2034
Univ Of Mn Rgts-A 05.0000 09/01/2039
Holdings represent 19.20% of portfolio
Top 10 holdings as of 01/31/19
Minnesota St 05.0000 06/01/2037
Minneapolis Hlth-A 05.0000 11/15/2034
Univ Of Mn Rgts-A 05.0000 09/01/2041
Minneapolis Hlth-B1-A 01.5000 11/15/2035
Minnesota St-A 05.0000 08/01/2019
Sthrn Mn Pwr Cab -A 00.0000 01/01/2024
Hennepin Co-C 05.0000 12/01/2034
Univ Of Mn Rgts-A 05.0000 09/01/2039
Sthrn Mn Muni Pwr Agy 05.0000 01/01/2042
Saint Cloud Mn Hlth C 05.0000 05/01/2046
Holdings represent 18.47% of portfolio

Portfolio composition as of 04/30/19

Municipal bonds and notes 97.65%
Cash and net other assets 2.35%

Fixed income statistics as of 04/30/19

Average stated maturity 16.34 yrs.
Average effective maturity 5.79 yrs.
Option adjusted duration 6.53 yrs.
Duration to worst 4.82 yrs.
Average yield to maturity 3.50%
Average coupon 4.59%
Average price $109.31
AMT exposure 3.53%

Quality rating as of 04/30/19

AAA 13.44%
AA 40.94%
A 23.86%
BBB 10.91%
BB 4.25%
Not Rated 4.25%
Cash and net other assets 2.35%

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Consider these risks before investing: 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 performance will be closely tied to the economic and political conditions in Minnesota and can be more volatile than the performance of a more geographically diversified fund. Capital gains, if any, are taxed at the federal and, in most cases, state levels. For some investors, investment income may be subject to the federal alternative minimum tax. 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. Tax-exempt bonds may be issued under the Internal Revenue Code only by limited types of issuers for limited types of projects. As a result, the fund’s investments may be focused in certain market segments and be more vulnerable to fluctuations in the values of the securities it holds than a more broadly invested fund. Interest the fund receives might be taxable. You can lose money by investing in the fund.

Credit qualities are shown as a percentage of net assets. A bond rated BBB or higher (SP-3 or higher, for short-term debt) is considered investment grade. This chart reflects the highest security rating provided by one or more of Standard & Poor's, Moody's, and Fitch. Ratings may vary over time. Cash and net other assets, if any, represent the market value weights of cash, derivatives, and short-term securities in the portfolio. The fund itself has not been rated by an independent rating agency.

Top industry sectors as of 04/30/19

Education 20.68%
Health care 19.69%
Local Debt 17.35%
Utilities 14.69%
Prerefunded 8.14%
State Debt 7.30%
Transportation 5.30%
Other 2.77%
Cash and net other assets 2.35%
 
Other
1.73%
Housing 1.28%
Special Tax 0.29%
Industrials 0.16%

Sectors will vary over time.


Expenses

Expense ratio

Class A Class B Class C Class M Class R6 Class Y
Total expense ratio 0.87% 1.49% 1.64% 1.14% 0.61% 0.64%
What you pay 0.87% 1.49% 1.64% 1.14% 0.61% 0.64%

Sales charge

 Breakpoint Class A Class B Class C Class M Class R6 Class Y
$0-$49,999 4.00% / 3.50% 0.00% / 4.00% 0.00% / 1.00% 3.25% / 3.00% -- --
$50,000-$99,999 4.00% / 3.50% 0.00% / 4.00% 0.00% / 1.00% 2.25% / 2.00% -- --
$100,000-$249,999 3.25% / 2.75% -- 0.00% / 1.00% 1.25% / 1.00% -- --
$250,000-$499,999 2.50% / 2.00% -- 0.00% / 1.00% 1.00% / 1.00% -- --
$500,000-$999,999 0.00% / 1.00% -- -- -- -- --
$1M-$4M 0.00% / 1.00% -- -- -- -- --
$4M-$50M 0.00% / 0.50% -- -- -- -- --
$50M+ 0.00% / 0.25% -- -- -- -- --

CDSC

  Class A (sales for $500,000+) Class B Class C Class M Class R6 Class Y
0 to 9 mts. 1.00% 5.00% 1.00% -- -- --
9 to 12 mts. 0.00% 5.00% 1.00% -- -- --
2 yrs. -- 4.00% 0.00% -- -- --
3 yrs. -- 3.00% 0.00% -- -- --
4 yrs. -- 3.00% 0.00% -- -- --
5 yrs. -- 2.00% 0.00% -- -- --
6 yrs. -- 1.00% 0.00% -- -- --
7+ yrs. -- 0.00% 0.00% -- -- --

Trail commissions

  Class A Class B Class C Class M Class R6 Class Y
  0.15%1 0.20% 1.00% 0.40% 0.00% 0.00%
  0.20%2 NA NA NA NA NA
  0.25%3 NA NA NA NA NA
  1. Through 03/06/92
  2. After 03/06/92through 03/31/05
  3. After 03/31/05

For sales and trail commission information on purchases over $500,000 and participant-directed qualified retirement plans, see a Putnam fund prospectus and the statement of additional information.

The Bloomberg Barclays 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: 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 performance will be closely tied to the economic and political conditions in Minnesota and can be more volatile than the performance of a more geographically diversified fund. Capital gains, if any, are taxed at the federal and, in most cases, state levels. For some investors, investment income may be subject to the federal alternative minimum tax. 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. Tax-exempt bonds may be issued under the Internal Revenue Code only by limited types of issuers for limited types of projects. As a result, the fund’s investments may be focused in certain market segments and be more vulnerable to fluctuations in the values of the securities it holds than a more broadly invested fund. Interest the fund receives might be taxable. You can lose money by investing in the fund.

Credit qualities are shown as a percentage of net assets. A bond rated BBB or higher (SP-3 or higher, for short-term debt) is considered investment grade. This chart reflects the highest security rating provided by one or more of Standard & Poor's, Moody's, and Fitch. Ratings may vary over time. Cash and net other assets, if any, represent the market value weights of cash, derivatives, and short-term securities in the portfolio. The fund itself has not been rated by an independent rating agency.