Pennsylvania Tax Exempt Income Fund  (PPTYX)

Seeking a high level of tax-free income


Track this fund

Objective

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

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $9.15
0.11% | $0.01
$9.27
10/20/16
$8.92
12/01/16
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.

9.10%

Best 5-year annualized return

(for period ending 12/31/95)


1.70%

Worst 5-year annualized return

(for period ending 12/31/08)


5.16%

Average 5-year annualized return


Fund facts as of 09/30/17

Total net assets
$181.84M
Turnover (fiscal year end)
19%
Dividend frequency (view rate)
Monthly
Number of holdings
166
Fiscal year end
May
CUSIP / Fund code
746852508 / 1824
Inception Date
01/02/08
Category
Tax-free Income
Open to new investors
Ticker
PPTYX

Management team


Portfolio Manager

Portfolio Manager

Strategy and process

  • Tax-advantaged income: The fund offers Pennsylvania residents the potential for high current income that is free from federal income tax and Pennsylvania 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.

Literature

Fund documents

Fact Sheet (Y share) (PDF)
Prospectus (PDF)
Annual Report (PDF)
Semiannual Report (PDF)
Brochure (PDF)
Proxy voting results (Form N-PX) (PDF)
Quarterly Commentary (PDF)
Comparing Putnam's tax-free income funds (PDF)

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Performance

  • Total return (%) as of 09/30/17

  • Annual performance as of 09/30/17

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge 0.67% 2.98% 2.59% 4.08%
After sales charge N/A N/A N/A N/A
Bloomberg Barclays Municipal Bond Index 0.87% 3.19% 3.01% 4.52%

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. To obtain the most recent month-end performance, visit putnam.com. 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 Absolute Return 500 Fund and 700 Fund, and 4.00% and 3.25% for income funds (1.00% and 0.75% for Putnam Floating Rate Income Fund, Putnam Absolute Return 100 Fund and 300 Fund, and Putnam Short-Term Municipal Income 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, Putnam Absolute Return 100 Fund and 300 Fund, and Putnam Short-Term Municipal Income Fund, which is 1% in the first year, declining to 0.5% in the second 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, R, T1, 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). 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, M, and T1 shares of Putnam money market funds have no initial sales charge. For a portion of the period, some funds had expenses 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 09/30/17 -0.16 % -
YTD as of 10/19/17 4.58 % -

Yield

Distribution rate before sales charge
as of 10/19/17
2.98%
Distribution rate after sales charge
as of 10/19/17
2.98%
30-day SEC yield as of 09/29/17 1.83%

Risk-adjusted performance as of 09/30/17

Sharpe ratio (3 yrs.) 1.02
Information ratio (3 yrs.) -0.25

Volatility as of 09/30/17

Standard deviation (3 yrs.) 2.67%
Beta 0.80
R-squared 0.96

Lipper rankings as of 09/30/17

Pennsylvania Municipal Debt Funds Percentile ranking Rank/Funds in category
1 yr. 30% 18/59
3 yrs. 49% 28/57
5 yrs. 47% 25/53
10 yrs.   --

Morningstar ratings as of 09/30/17

Muni Pennsylvania Rating Funds in category
Overall (59)
3 yrs. (59)
5 yrs. (55)
10 yrs. (48)

Distributions

Accrual days 29
Accrual start date 09/01/17
Accrual end date 09/29/17
Payable date 09/29/17
Non-taxable income $0.025231235
Extra taxable income $0.0

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 09/30/17

Allegheny Co-C-72 05.2500 12/01/2033 1.45%
Geisinger Auth-A-2 05.0000 02/15/2039 1.37%
Cntrl Puget Transp-S1 05.0000 11/01/2045 1.29%
Ma Sch Bldg-B-Senior 05.0000 11/15/2046 1.29%
Dallas Area Rapid-A 05.0000 12/01/2041 1.29%
Pa St Univ-A 05.0000 09/01/2037 1.29%
Montgomery Indl-A-Aqu 05.2500 07/01/2042 1.28%
Capital Region Wtr 05.0000 07/15/2042 1.27%
Pa Tpk Commn-B-Ref 05.0000 06/01/2036 1.26%
Centennial Sd Ser A 05.0000 12/15/2037 1.23%
Top 10 holdings, percent of portfolio 13.03%

Full portfolio holdings as of 06/30/17

ALLEGHENY CO-C-72 05.2500 12/01/2033 1.38%
GEISINGER AUTH-A-2 05.0000 02/15/2039 1.30%
MONTGOMERY INDL-A-AQU 05.2500 07/01/2042 1.25%
PA ST UNIV-A 05.0000 09/01/2037 1.23%
DALLAS AREA RAPID-A 05.0000 12/01/2041 1.22%
CAPITAL REGION WTR 05.0000 07/15/2042 1.21%
PA ECON DEV FIN AUTH 05.0000 03/01/2034 1.18%
ALLEGHENY HOSP DEV 05.6250 08/15/2039 1.17%
CENTENNIAL SD SER A 05.0000 12/15/2037 1.17%
PA TPK COMMN-B-REF 05.0000 06/01/2036 1.17%
FRANKLIN IDA-CHAMBERS 05.3750 07/01/2042 1.16%
BERKS MUN AUTH-A3-REA 05.5000 11/01/2031 1.15%
LYCOMING CNTY HLTH-A 05.7500 07/01/2039 1.15%
READING 05.0000 11/01/2029 1.14%
PA TRNPKE REV -A1 05.0000 12/01/2038 1.13%
NORTHAMPTON HSP-A-ST 05.5000 08/15/2035 1.12%
PA UNIV-A 05.0000 09/01/2034 1.09%
PA TURNPIKE COMM-CONV 00.0000 12/01/2034 1.06%
PHILADELPHIA GAS WKS 05.0000 08/01/2033 1.00%
PA IDA-REFUNDED-REF 05.5000 07/01/2023 0.99%
PHILADELPHIA HSP-B-VA 00.7500 07/01/2025 0.99%
MCKEESPORT SWR 05.7500 12/15/2039 0.98%
PHILADELPHIA WTR-A 05.0000 07/01/2040 0.90%
PA ST-FIRST SER 05.0000 11/15/2030 0.89%
PHILADELPHIA AUTH-A 05.0000 12/01/2031 0.89%
MONTGOMERY IDA 05.0000 11/15/2036 0.88%
DALLAS AREA MUNI AUTH 05.0000 05/01/2029 0.86%
PHILA ARPT-AMT-REF-D 05.2500 06/15/2025 0.86%
COMMONWEALTH PA-B 05.0000 06/01/2031 0.84%
LANCASTER HOSP-VAR-D 00.7600 07/01/2034 0.84%
W MIFFLIN SD 05.1250 04/01/2031 0.84%
BUTLER AREA SD 05.2500 10/01/2026 0.83%
PHILADELPHIA PA WTR & 05.0000 10/01/2036 0.83%
E STROUDSBRG SD-UNREF 05.0000 09/01/2027 0.81%
PR HWY/TRN-PREREF-AA 05.5000 07/01/2018 0.81%
CUMBERLAND CNTY PA MU 05.0000 01/01/2038 0.79%
PHILADELPHIA GAS-REF 05.0000 10/01/2032 0.79%
CAPITAL REGION WTR-A 05.0000 07/15/2029 0.78%
PA ECON PROCTOR/GAMBL 05.3750 03/01/2031 0.77%
PITTSBURGH-B 05.0000 09/01/2025 0.77%
LEHIGH HOSP-A 05.0000 07/01/2025 0.76%
MONTGOMERY IDA-REF 05.0000 11/15/2028 0.73%
CHILDRENS TR FD-ASSET 05.5000 05/15/2039 0.72%
LUZERNE WTR-RF-PA AME 05.5000 12/01/2039 0.72%
PA TPK RMKT-C 05.0000 12/01/2028 0.72%
ST PUB SCH BLDG-A 05.0000 06/15/2034 0.72%
PA TPK SER C CABS 00.0000 12/01/2038 0.71%
ALLEGHENY HGR ED BLDG 05.0000 09/01/2020 0.69%
ST SCH BLDG DE CLG 05.0000 10/01/2027 0.68%
CNTRL DAUPHIN SD 05.0000 02/01/2030 0.63%
DAUPHIN INDL WTR -A 06.9000 06/01/2024 0.63%
PA ECON AMERN WTR PJ 06.2000 04/01/2039 0.63%
PHILADELPHIA-A-REF 05.2500 07/15/2027 0.63%
PITTSBURGH 05.0000 09/01/2025 0.63%
DELAWARE RVR PORT 05.0000 01/01/2030 0.62%
NEW YORK ST DORM AUTH 05.0000 02/15/2034 0.62%
CUMBERLAND CO MUNI 05.0000 05/01/2037 0.61%
LANGHORNE MANOR HGR 05.0000 11/15/2022 0.61%
PHILA AUTH INDL DEV 06.0000 08/01/2035 0.61%
ALLEGHENY CNTY-C76 05.0000 11/01/2041 0.60%
CUMBERLAND MUNI AUTH 05.0000 11/01/2032 0.60%
ERIE WTR AUTH WTR 05.0000 12/01/2043 0.60%
GEISINGER AUTH-A-1 05.0000 02/15/2045 0.60%
MONTGOMERY H/E-ARCADI 05.2500 04/01/2030 0.60%
PA ECON DEV FING-A 05.0000 02/01/2034 0.60%
PA ST HGR EDUCTNL FAC 05.0000 04/01/2031 0.60%
READING SD-A 05.0000 02/01/2033 0.60%
ALLEGHENY HOSP DEV-A 05.0000 10/15/2031 0.59%
LYCOMING CO AUTH 05.0000 05/01/2026 0.59%
MONROE CNTY PA HOSP A 05.0000 07/01/2041 0.59%
PA ECON DEV FING 05.0000 12/31/2038 0.59%
PHILADELPHIA REDEV AU 05.0000 04/15/2026 0.59%
ALLEGHENY CN ARPT A-1 05.0000 01/01/2028 0.58%
BEAVER CNTY HOSP AUTH 05.0000 05/15/2026 0.58%
GUAM GOVT-30-A 05.7500 12/01/2034 0.58%
LANCASTER CO HOSP-REF 05.0000 11/01/2035 0.58%
PA HGR ED-A-ST JOSEPH 05.0000 11/01/2040 0.58%
PA HGR EDL-A-DREXEL 05.1250 05/01/2036 0.58%
PA ST UNIV 05.0000 03/01/2035 0.58%
PA TURNPIKE COMMN 05.0000 12/01/2042 0.58%
WILKES BARRE FIN-UNIV 05.0000 11/01/2035 0.58%
CRAWFORD CNTY 06.0000 11/01/2031 0.57%
INDIANA CNTY INDL DEV 05.0000 05/01/2033 0.57%
LANCASTER CO HOSP-A 05.0000 07/01/2045 0.57%
PHILADELPHIA SD-A 05.0000 09/01/2034 0.57%
PHILADELPHIA SD-F-REF 05.0000 09/01/2036 0.57%
CHESTER CO IDA-A 05.0000 08/01/2045 0.56%
ERIE HGR ED-A-GANNON 05.3750 05/01/2030 0.56%
ERIE HGR ED-MERCYHURS 05.3500 03/15/2028 0.56%
LANCASTER CNTY HOSP 05.0000 04/01/2027 0.56%
MONTGOMERY CO IND DEV 05.0000 12/01/2046 0.56%
MONTGOMERY H/E-ARCADI 05.6250 04/01/2040 0.56%
PA PCR-RF-PPL ELEC UT 04.0000 10/01/2023 0.56%
ALLEGHENY HGR ED-DUQU 05.0000 03/01/2033 0.55%
LANCASTER -REF 04.0000 11/01/2046 0.55%
LANCASTER HGR ED-FRAN 05.0000 04/15/2029 0.55%
PA ST ECON-B 05.0000 07/01/2021 0.55%
MONTGOMERY INDL DEV 04.0000 10/01/2022 0.54%
PA HSG FIN AGY-A-AMT 03.9500 10/01/2033 0.54%
ALLEGHENY HGR ED-A 06.0000 10/15/2038 0.53%
PHILA AUTH INDL-GLOBA 06.3750 11/15/2040 0.52%
PA ST HSG FIN AGY-REF 03.9500 10/01/2030 0.50%
HARRISBURG WTR-UNREF 05.1250 07/15/2028 0.49%
CHESTER CO 05.0000 07/15/2036 0.48%
CENTRE CO HOSP-A-REF 05.0000 11/15/2041 0.47%
PA TURNPIKE COMM-CONV 00.0000 12/01/2037 0.47%
DE RVR PORT AUTH 05.0000 01/01/2040 0.46%
STATE CLG AREA SD 05.0000 03/15/2040 0.46%
DAUPHIN GEN-UNREF 06.0000 06/01/2029 0.45%
S CENT GEN AUTH-UNIVS 05.5000 11/01/2031 0.45%
STATE PUBLIC SCH BLDG 05.0000 12/01/2033 0.45%
E HEMPFIELD DEV-REF 05.0000 12/01/2039 0.44%
PHILLY GAS-9TH-UNREF 05.2500 08/01/2040 0.44%
UPPER MORELAND-UNREF 05.0000 09/01/2028 0.43%
CUMBERLAND CNTY PA MU 05.0000 01/01/2032 0.42%
ERIE HGR EDU BLDG-REF 05.0000 05/01/2034 0.42%
SNYDER HGR ED AUTH 05.0000 01/01/2038 0.42%
DAUPHIN GEN-REFD 06.0000 06/01/2029 0.41%
PA ECON WST MGMT-A 02.6250 11/01/2021 0.41%
PHILLY AUTH FOR HOSP 04.0000 07/01/2035 0.41%
CUMBERLAND AUTH-A-PRE 05.1500 01/01/2018 0.40%
DE HLTH-VAR-A-CHRISTI 00.7800 10/01/2038 0.40%
PA ECO DEV FIN-WASTE 02.2500 07/01/2041 0.40%
PA HGR EDL-UNIV PPTYS 05.0000 07/01/2042 0.39%
PA FIN-B-PENN HILLS 00.0000 12/01/2027 0.37%
UPPER MERION ASD-REF 05.0000 01/15/2033 0.37%
PA TNPK CMMN-A 05.0000 12/01/2038 0.36%
DOYLESTOWN HOSP-A 05.0000 07/01/2041 0.35%
PITTSBURGH 05.0000 09/01/2034 0.34%
PHILADELPHIA PA WTR & 05.0000 10/01/2030 0.33%
PA ST TRNPK-B 05.0000 12/01/2026 0.32%
SUSQUEHANNA ARPT-A 06.5000 01/01/2038 0.32%
MONROE CNTY HOSP-A 05.0000 01/01/2032 0.31%
DOYLESTOWN HOSP-A 05.0000 07/01/2025 0.30%
PA ST HGR ED-THOMAS 05.0000 03/01/2032 0.30%
PA ST HGR EDUCTNL FAC 05.0000 04/01/2032 0.30%
ALLEGHENY HGR ED-A-RO 05.7500 10/15/2040 0.29%
CENTRE CO HOSP-A-REF 05.0000 11/15/2046 0.29%
LANCASTER IDA 05.3750 05/01/2028 0.29%
NORTHAMPTON CNTY 05.0000 07/01/2031 0.29%
PA ECON-A-REF-AMTRAK 05.0000 11/01/2032 0.29%
PA HGR ED FACS AUTH-A 05.0000 07/01/2032 0.29%
PA TPK COMM-A-1 05.0000 12/01/2046 0.29%
PA TPK COMM-C 05.0000 12/01/2044 0.29%
PHILLY GAS-9TH-PRERF 05.2500 08/01/2040 0.29%
WEST SHORE AREA AUTH 05.0000 07/01/2035 0.29%
WILKES BARRE FIN-UNIV 05.0000 11/01/2040 0.29%
DAUPHIN GEN AUTH-A 05.0000 06/01/2035 0.28%
GUAM WATERWORKS AUTH 05.6250 07/01/2040 0.26%
OK ST TPK-VAR-REF-F 00.7300 01/01/2028 0.26%
PA ECON DEV-VAR-REF-A 01.2500 04/01/2019 0.26%
PA ST HGR EDUCTNL FAC 05.0000 11/01/2042 0.25%
E HEMPFIELD TWP IDA 05.0000 07/01/2030 0.24%
LEHIGH CNTY PA GEN PU 05.0000 07/01/2030 0.22%
GUAM PWR-A 05.5000 10/01/2040 0.20%
SUSQUEHANNA ARPT-A 05.0000 01/01/2027 0.20%
PITTSBURGH 05.0000 09/01/2035 0.18%
ALLEGHENY CNTY PA HGR 05.0000 03/01/2019 0.17%
CHESTER CNTY PA 05.0000 07/15/2020 0.17%
LANCASTER CO HOSP AUT 05.1250 07/01/2037 0.17%
PA HGR ED REF-PHILA 05.0000 06/01/2022 0.17%
ALLEGHENY CNTY PA-REF 05.0000 12/01/2025 0.16%
WESTMORELAND CO AUTH 05.0000 08/15/2027 0.16%
PA ECON DEV FING 05.0000 12/31/2034 0.15%
PA IDA-PREREF-REF 05.5000 07/01/2023 0.14%
PA SEW-PHILADELPHIA B 06.2500 01/01/2032 0.14%
PA ST HGR EDUCTNL FAC 05.0000 10/01/2035 0.14%
CHESTER CO INDL DEV-A 05.1250 10/15/2037 0.12%
E HEMPFIELD TWP IDA 05.0000 07/01/2034 0.11%
PA HGR ED REF-PHILA 05.0000 06/01/2030 0.11%
CHESTER CNTY PA INDL 05.0000 10/01/2034 0.09%
CATASAUQUA ASD-UNREF 05.0000 02/15/2026 0.06%
HARRISBURG WTR-PREREF 05.1250 07/15/2028 0.06%
PR HWY/TRN-UNREF-AA 05.5000 07/01/2018 0.04%
E STROUDSBRG SD-PRERF 05.0000 09/01/2027 0.01%

Prior top 10 holdings

Top 10 holdings as of 09/30/17
Allegheny Co-C-72 05.2500 12/01/2033
Geisinger Auth-A-2 05.0000 02/15/2039
Cntrl Puget Transp-S1 05.0000 11/01/2045
Ma Sch Bldg-B-Senior 05.0000 11/15/2046
Dallas Area Rapid-A 05.0000 12/01/2041
Pa St Univ-A 05.0000 09/01/2037
Montgomery Indl-A-Aqu 05.2500 07/01/2042
Capital Region Wtr 05.0000 07/15/2042
Pa Tpk Commn-B-Ref 05.0000 06/01/2036
Centennial Sd Ser A 05.0000 12/15/2037
Holdings represent 13.03% of portfolio
Top 10 holdings as of 08/31/17
Allegheny Co-C-72 05.2500 12/01/2033
Geisinger Auth-A-2 05.0000 02/15/2039
Pa St Univ-A 05.0000 09/01/2037
Dallas Area Rapid-A 05.0000 12/01/2041
Capital Region Wtr 05.0000 07/15/2042
Montgomery Indl-A-Aqu 05.2500 07/01/2042
Pa Econ Dev Fin Auth 05.0000 03/01/2034
Pa Tpk Commn-B-Ref 05.0000 06/01/2036
Centennial Sd Ser A 05.0000 12/15/2037
Berks Mun Auth-A3-Rea 05.5000 11/01/2031
Holdings represent 12.90% of portfolio
Top 10 holdings as of 07/31/17
Allegheny Co-C-72 05.2500 12/01/2033
Geisinger Auth-A-2 05.0000 02/15/2039
Pa St Univ-A 05.0000 09/01/2037
Dallas Area Rapid-A 05.0000 12/01/2041
Montgomery Indl-A-Aqu 05.2500 07/01/2042
Capital Region Wtr 05.0000 07/15/2042
Pa Econ Dev Fin Auth 05.0000 03/01/2034
Pa Tpk Commn-B-Ref 05.0000 06/01/2036
Centennial Sd Ser A 05.0000 12/15/2037
Allegheny Hosp Dev 05.6250 08/15/2039
Holdings represent 12.82% of portfolio
Top 10 holdings as of 06/30/17
Allegheny Co-C-72 05.2500 12/01/2033
Geisinger Auth-A-2 05.0000 02/15/2039
Montgomery Indl-A-Aqu 05.2500 07/01/2042
Pa St Univ-A 05.0000 09/01/2037
Dallas Area Rapid-A 05.0000 12/01/2041
Capital Region Wtr 05.0000 07/15/2042
Pa Econ Dev Fin Auth 05.0000 03/01/2034
Pa Tpk Commn-B-Ref 05.0000 06/01/2036
Centennial Sd Ser A 05.0000 12/15/2037
Allegheny Hosp Dev 05.6250 08/15/2039
Holdings represent 12.28% of portfolio

Portfolio composition as of 09/30/17

Municipal bonds and notes 97.14%
Cash and net other assets 2.86%

Fixed income statistics as of 09/30/17

Average stated maturity 16.82 yrs.
Average effective maturity 5.75 yrs.
Option adjusted duration 6.93 yrs.
Duration to worst 4.73 yrs.
Average yield to maturity 3.64%
Average coupon 4.76%
Average price $108.96
AMT exposure 8.41%

Quality rating as of 09/30/17

AAA 3.00%
AA 34.41%
A 43.19%
BBB 13.46%
BB 2.49%
Not Rated 0.59%
Cash and net other assets 2.86%

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Consider these risks before investing: Bond prices may fall or fail to rise over time for several reasons, including general financial market conditions, changing market perceptions of the risk of default, changes in government intervention in the financial markets, and factors related to a specific issuer. These factors may also lead to periods of high volatility and reduced liquidity in the bond markets. Single-state investments are at risk of common economic forces and other factors affecting a state's tax-exempt investments. This may result in greater losses and volatility. 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 greater for longer-term bonds, and credit risk is 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. Short-term cash bonds are included in the cash and net other assets category. Ratings and portfolio credit quality will vary over time. Derivative instruments, including currency forwards, are only included to the extent of any unrealized gain or loss on such instruments and are shown in the cash and net other assets category. Cash is also shown in the cash and net other assets category. The fund itself has not been rated by an independent rating agency.

Top Industry Sectors as of 09/30/17

Health care 18.22%
Education 16.01%
Utilities 14.86%
Local Debt 13.47%
Transportation 9.77%
Prerefunded 7.32%
Special Tax 6.18%
State Debt 4.98%
Cash and net other assets 2.86%
 
Other
6.33%
Housing 2.59%
Industrials 2.34%
Tobacco 0.76%
Other 0.64%

The unclassified sector (where applicable) includes exchange traded funds and other securities not able to be classified by sector.

Sectors will vary over time. Represents the equity portion of the portfolio.


Expenses

Expense ratio

Class A Class B Class C Class M Class Y
Total expense ratio 0.83% 1.45% 1.60% 1.10% 0.60%
What you pay 0.83% 1.45% 1.60% 1.10% 0.60%

Sales charge/Dealer allowance

 Breakpoint Class A Class B Class C Class M 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 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 Y
  0.15% 1 0.20% 1.00% 0.40% 0.00%
  0.20% 2 NA NA NA NA
  0.25% 3 NA NA NA NA
  1. Through 07/08/93
  2. After 07/08/93through 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: Bond prices may fall or fail to rise over time for several reasons, including general financial market conditions, changing market perceptions of the risk of default, changes in government intervention in the financial markets, and factors related to a specific issuer. These factors may also lead to periods of high volatility and reduced liquidity in the bond markets. Single-state investments are at risk of common economic forces and other factors affecting a state's tax-exempt investments. This may result in greater losses and volatility. 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 greater for longer-term bonds, and credit risk is 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. Short-term cash bonds are included in the cash and net other assets category. Ratings and portfolio credit quality will vary over time. Derivative instruments, including currency forwards, are only included to the extent of any unrealized gain or loss on such instruments and are shown in the cash and net other assets category. Cash is also shown in the cash and net other assets category. The fund itself has not been rated by an independent rating agency.