Pennsylvania Tax Exempt Income Fund (Class Y)  (PPTYX)

Seeking a high level of tax-free income


Track this fund

Highlights

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.

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.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $8.79
0.00% | $0.00
$9.17
11/08/17
$8.78
10/10/18
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.

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)


5.06%

Average 5-year annualized return


Fund facts as of 09/30/18

Total net assets
$158.25M
Turnover (fiscal year end)
24%
Dividend frequency (view rate)
Monthly
Number of holdings
155
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


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 09/30/18

  • Annual performance as of 09/30/18

Annualized Total return (%) as of 09/30/18

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge 0.54% 2.05% 3.43% 4.40%
After sales charge N/A N/A N/A N/A
Bloomberg Barclays Municipal Bond Index 0.35% 2.24% 3.54% 4.75%

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, and 4.00% and 3.25% for income funds (2.25% and 0.75% for Putnam Short Duration Bond Fund and 1.00% and 0.75% for Putnam Floating Rate Income Fund, Putnam Fixed Income Absolute Return 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 Short Duration Bond Fund, Putnam Fixed Income Absolute Return 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, 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. 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 09/30/18 -0.55 % -
YTD as of 10/22/18 -1.28 % -

Yield

Distribution rate before sales charge
as of 10/22/18
3.03%
Distribution rate after sales charge
as of 10/22/18
3.03%
30-day SEC yield as of 09/30/18 2.46%

Risk-adjusted performance as of 09/30/18

Sharpe ratio (3 yrs.) 0.50
Information ratio (3 yrs.) -0.22

Volatility as of 09/30/18

Standard deviation (3 yrs.) 2.60%
Beta 0.79
R-squared 0.96

Lipper rankings as of 09/30/18

Time period Rank/Funds in category Percentile ranking
1 yr. 28/58 48%
3 yrs. 25/53 47%
5 yrs. 26/51 50%
10 yrs. 23/46 49%
Lipper category: Pennsylvania Municipal Debt Funds

Morningstar Ratings as of 09/30/18

Time period Funds in category Morningstar Rating
Overall 55
3 yrs. 55
5 yrs. 53
10 yrs. 48
Morningstar category: Muni Pennsylvania

Distributions

Accrual days 27
Accrual start date 09/04/18
Accrual end date 09/30/18
Payable date 09/28/18
Non-taxable income $0.021039388
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 09/30/18

Allegheny Co-C-72 05.2500 12/01/2033 1.60%
Geisinger Auth-A-2 05.0000 02/15/2039 1.51%
Capital Region Wtr 05.0000 07/15/2042 1.40%
Pa Tpk Commn-B-Ref 05.0000 06/01/2036 1.40%
Franklin Ida-Chambers 05.3750 07/01/2042 1.34%
Reading 05.0000 11/01/2029 1.33%
Pa Trnpke Rev -A1 05.0000 12/01/2038 1.33%
Pa Econ Dev Fin Auth 05.0000 03/01/2034 1.32%
Lycoming Cnty Hlth-A 05.7500 07/01/2039 1.32%
Pa Turnpike Comm-Conv 00.0000 12/01/2034 1.32%
Top 10 holdings, percent of portfolio 13.87%

Full portfolio holdings as of 06/30/18

ALLEGHENY CO-C-72 05.2500 12/01/2033 1.52%
GEISINGER AUTH-A-2 05.0000 02/15/2039 1.48%
MONTGOMERY INDL-A-AQU 05.2500 07/01/2042 1.39%
CAPITAL REGION WTR 05.0000 07/15/2042 1.38%
PA TPK COMMN-B-REF 05.0000 06/01/2036 1.33%
FRANKLIN IDA-CHAMBERS 05.3750 07/01/2042 1.30%
PA ECON DEV FIN AUTH 05.0000 03/01/2034 1.30%
ALLEGHENY HOSP DEV 05.6250 08/15/2039 1.28%
LYCOMING CNTY HLTH-A 05.7500 07/01/2039 1.28%
PA TRNPKE REV -A1 05.0000 12/01/2038 1.26%
READING 05.0000 11/01/2029 1.26%
PA TURNPIKE COMM-CONV 00.0000 12/01/2034 1.25%
PA HGR EDU FAC-REF 04.0000 05/01/2034 1.24%
PA UNIV-A 05.0000 09/01/2034 1.22%
SCRANTON SCH DIST-E 04.0000 12/01/2037 1.17%
PHILADELPHIA GAS WKS 05.0000 08/01/2033 1.13%
MCKEESPORT SWR 05.7500 12/15/2039 1.11%
PHILADELPHIA SD-A 05.0000 09/01/2033 1.09%
PA IDA-REFUNDED-REF 05.5000 07/01/2023 1.08%
PENNSYLVANIA-A-COPS 05.0000 07/01/2037 1.08%
PHILADELPHIA WTR-A 05.0000 07/01/2040 1.03%
MONTGOMERY IDA 05.0000 11/15/2036 1.01%
PHILADELPHIA AUTH-A 05.0000 12/01/2031 1.01%
DALLAS AREA MUNI AUTH 05.0000 05/01/2029 0.98%
PHILA ARPT-AMT-REF-D 05.2500 06/15/2025 0.96%
COMMONWEALTH PA-B 05.0000 06/01/2031 0.93%
BUTLER AREA SD 05.2500 10/01/2026 0.92%
LACKAWANNA CNTY PA IN 04.0000 11/01/2040 0.92%
W MIFFLIN SD 05.1250 04/01/2031 0.92%
PHILADELPHIA GAS-REF 05.0000 10/01/2032 0.90%
CAPITAL REGION WTR-A 05.0000 07/15/2029 0.87%
PA TPK 2ND SER REF 05.0000 12/01/2037 0.87%
READING SD 05.0000 03/01/2038 0.86%
PA ECON PROCTOR/GAMBL 05.3750 03/01/2031 0.85%
PITTSBURGH-B 05.0000 09/01/2025 0.85%
PA TPK SER C CABS 00.0000 12/01/2038 0.82%
MONTGOMERY IDA-REF 05.0000 11/15/2028 0.81%
ST PUB SCH BLDG-A 05.0000 06/15/2034 0.80%
LUZERNE WTR-RF-PA AME 05.5000 12/01/2039 0.79%
PR HWY/TRN-PREREF-AA 05.5000 07/01/2019 0.77%
ALLEGHENY HGR ED BLDG 05.0000 09/01/2020 0.76%
DAUPHIN INDL WTR -A 06.9000 06/01/2024 0.74%
CNTRL DAUPHIN SD 05.0000 02/01/2030 0.71%
NM ENERGY GAS VAR-B 02.1520 11/01/2039 0.71%
PITTSBURGH 05.0000 09/01/2025 0.70%
ERIE PA WTR AUTH-A 05.0000 12/01/2043 0.69%
GEISINGER AUTH-A-1 05.0000 02/15/2045 0.69%
PA ECON AMERN WTR PJ 06.2000 04/01/2039 0.69%
PHILADELPHIA GAS WKS 05.0000 08/01/2042 0.69%
PHILADELPHIA SD-A 05.0000 09/01/2032 0.69%
CMWLTH FING AUTH 05.0000 06/01/2033 0.68%
CMWLTH FING AUTH 05.0000 06/01/2034 0.68%
MONROE CNTY PA HOSP A 05.0000 07/01/2041 0.68%
PA ECON DEV FING-A 05.0000 02/01/2034 0.68%
PA ST TRNPK-B 05.0000 12/01/2039 0.68%
PHILADELPHIA SD-F-REF 05.0000 09/01/2036 0.68%
PITTSBURGH & ALLEGHEN 05.0000 12/15/2033 0.68%
READING SD-A 05.0000 02/01/2033 0.68%
ERIE WTR AUTH WTR 05.0000 12/01/2043 0.67%
LANCASTER CO HOSP-REF 05.0000 11/01/2035 0.67%
LANGHORNE MANOR HGR 05.0000 11/15/2022 0.67%
MONTGOMERY H/E-ARCADI 05.2500 04/01/2030 0.67%
PA ECON DEV FING 05.0000 12/31/2038 0.67%
PHILADELPHIA SD-A 05.0000 09/01/2034 0.67%
PITTSBURGH & ALLEGHEN 05.0000 12/15/2037 0.67%
ALLEGHENY CN ARPT A-1 05.0000 01/01/2028 0.66%
ALLEGHENY HOSP DEV-A 05.0000 10/15/2031 0.66%
CUMBERLAND MUNI AUTH 05.0000 11/01/2032 0.66%
PA ST HGR EDUCTNL FAC 05.0000 04/01/2031 0.66%
BEAVER CNTY HOSP AUTH 05.0000 05/15/2026 0.65%
LANCASTER CO HOSP-A 05.0000 07/01/2045 0.65%
LYCOMING CO AUTH 05.0000 05/01/2026 0.65%
MONTGOMERY CO IND DEV 05.0000 12/01/2046 0.65%
PHILADELPHIA REDEV AU 05.0000 04/15/2026 0.65%
CHESTER CO IDA-A 05.0000 08/01/2045 0.64%
GUAM GOVT-30-A 05.7500 12/01/2034 0.64%
INDIANA CNTY INDL DEV 05.0000 05/01/2033 0.64%
PA HGR ED-A-ST JOSEPH 05.0000 11/01/2040 0.64%
BERKS MUNI-A3-PREREF 05.5000 11/01/2031 0.63%
BERKS MUNI-A3-UNREF 05.5000 11/01/2031 0.63%
CRAWFORD CNTY 06.0000 11/01/2031 0.63%
ERIE HGR ED-A-GANNON 05.3750 05/01/2030 0.63%
LANCASTER CNTY HOSP 05.0000 04/01/2027 0.63%
MONTGOMERY H/E-ARCADI 05.6250 04/01/2040 0.63%
LANCASTER -REF 04.0000 11/01/2046 0.62%
MANHEIM TWP SD-A-NTS 01.8930 05/01/2025 0.61%
MONTGOMERY INDL DEV 04.0000 10/01/2022 0.61%
PA HSG FIN AGY-A-AMT 03.9500 10/01/2033 0.61%
LEHIGH IDA-A-REF 01.8000 09/01/2029 0.59%
LEHIGH IDA-B-REF-REMK 01.8000 02/15/2027 0.59%
PHILA AUTH INDL-GLOBA 06.3750 11/15/2040 0.59%
PHILADELPHIA HSP-B-VA 00.6900 07/01/2025 0.58%
ALLEGHENY CNTY-C77 04.0000 11/01/2034 0.57%
LANCASTER HOSP-VAR-D 00.6300 07/01/2034 0.57%
PA TURNPIKE COMM-CONV 00.0000 12/01/2037 0.56%
HARRISBURG WTR-UNREF 05.1250 07/15/2028 0.55%
CENTRE CO HOSP-A-REF 05.0000 11/15/2041 0.53%
CHESTER CO 05.0000 07/15/2036 0.53%
PA TPK COMM-A-UNREF 05.0000 12/01/2042 0.53%
DE RVR PORT AUTH 05.0000 01/01/2040 0.51%
STATE CLG AREA SD 05.0000 03/15/2040 0.51%
STATE PUBLIC SCH BLDG 05.0000 12/01/2033 0.51%
PHILLY GAS-9TH-UNREF 05.2500 08/01/2040 0.50%
DAUPHIN GEN-UNREF 06.0000 06/01/2029 0.49%
ERIE HGR EDU BLDG-REF 05.0000 05/01/2034 0.49%
NAZARETH ASD-E 05.0000 11/15/2038 0.48%
PA ECON DEV-VAR-REF-A 01.8500 04/01/2019 0.48%
PHILLY AUTH FOR HOSP 04.0000 07/01/2035 0.48%
CUMBERLAND CNTY PA MU 05.0000 01/01/2032 0.47%
PA ECON WST MGMT-A 02.6250 11/01/2021 0.46%
PA ECO DEV FIN-WASTE 02.2500 07/01/2041 0.45%
PA TURNPIKE-B1 05.0000 06/01/2042 0.45%
PA HGR EDL-UNIV PPTYS 05.0000 07/01/2042 0.44%
PA FIN-B-PENN HILLS 00.0000 12/01/2027 0.43%
PITTSBURGH & ALLEGHEN 05.0000 12/15/2035 0.42%
UPPER MERION ASD-REF 05.0000 01/15/2033 0.42%
DOYLESTOWN HOSP-A 05.0000 07/01/2041 0.40%
PITTSBURGH 05.0000 09/01/2034 0.39%
PHILADELPHIA PA WTR & 05.0000 10/01/2030 0.37%
PA ST TRNPK-B 05.0000 12/01/2026 0.35%
NAZARETH ASD-E 05.0000 11/15/2039 0.34%
PHILADELPHIA-A-REF 05.0000 08/01/2037 0.34%
CENTRE CO HOSP-A-REF 05.0000 11/15/2046 0.33%
DOYLESTOWN HOSP-A 05.0000 07/01/2025 0.33%
LANCASTER IDA 05.3750 05/01/2028 0.33%
NORTHAMPTON CNTY 05.0000 07/01/2031 0.33%
PA ST HGR ED-THOMAS 05.0000 03/01/2032 0.33%
PA ST HGR EDUCTNL FAC 05.0000 04/01/2032 0.33%
PA TPK COMM-C 05.0000 12/01/2044 0.33%
WEST SHORE AREA AUTH 05.0000 07/01/2035 0.33%
ALLEGHENY HGR ED-A-RO 05.7500 10/15/2040 0.32%
DAUPHIN GEN AUTH-A 05.0000 06/01/2035 0.32%
PA ECON-A-REF-AMTRAK 05.0000 11/01/2032 0.32%
GUAM WATERWORKS AUTH 05.6250 07/01/2040 0.30%
PA ST HGR EDUCTNL FAC 05.0000 11/01/2042 0.29%
E HEMPFIELD TWP IDA 05.0000 07/01/2030 0.27%
LEHIGH CNTY PA GEN PU 05.0000 07/01/2030 0.24%
GUAM PWR-A 05.5000 10/01/2040 0.23%
SUSQUEHANNA ARPT-A 05.0000 01/01/2027 0.23%
PITTSBURGH 05.0000 09/01/2035 0.21%
LANCASTER CO HOSP AUT 05.1250 07/01/2037 0.20%
ALLEGHENY CNTY PA-REF 05.0000 12/01/2025 0.18%
WESTMORELAND CO AUTH 05.0000 08/15/2027 0.18%
PA ECON DEV FING 05.0000 12/31/2034 0.17%
PA SEW-PHILADELPHIA B 06.2500 01/01/2032 0.16%
PA ST HGR EDUCTNL FAC 05.0000 10/01/2035 0.16%
PA ST HSG FIN AGY-REF 03.9500 10/01/2030 0.15%
CHESTER CO INDL DEV-A 05.1250 10/15/2037 0.14%
E HEMPFIELD TWP IDA 05.0000 07/01/2034 0.13%
MS BUS FIN-VAR-E-CHEV 00.5500 12/01/2030 0.12%
PA TPK COMM-A-PREREF 05.0000 12/01/2042 0.12%
PA ST ECON-B 05.0000 07/01/2021 0.11%
CHESTER CNTY PA INDL 05.0000 10/01/2034 0.10%
HARRISBURG WTR-PREREF 05.1250 07/15/2028 0.07%
PA HGR EDU FAC-UNREF 05.1250 05/01/2036 0.04%

Prior top 10 holdings

Top 10 holdings as of 09/30/18
Allegheny Co-C-72 05.2500 12/01/2033
Geisinger Auth-A-2 05.0000 02/15/2039
Capital Region Wtr 05.0000 07/15/2042
Pa Tpk Commn-B-Ref 05.0000 06/01/2036
Franklin Ida-Chambers 05.3750 07/01/2042
Reading 05.0000 11/01/2029
Pa Trnpke Rev -A1 05.0000 12/01/2038
Pa Econ Dev Fin Auth 05.0000 03/01/2034
Lycoming Cnty Hlth-A 05.7500 07/01/2039
Pa Turnpike Comm-Conv 00.0000 12/01/2034
Holdings represent 13.87% of portfolio
Top 10 holdings as of 08/31/18
Allegheny Co-C-72 05.2500 12/01/2033
Geisinger Auth-A-2 05.0000 02/15/2039
Capital Region Wtr 05.0000 07/15/2042
Pa Tpk Commn-B-Ref 05.0000 06/01/2036
Pa Econ Dev Fin Auth 05.0000 03/01/2034
Franklin Ida-Chambers 05.3750 07/01/2042
Pa Trnpke Rev -A1 05.0000 12/01/2038
Reading 05.0000 11/01/2029
Pa Turnpike Comm-Conv 00.0000 12/01/2034
Lycoming Cnty Hlth-A 05.7500 07/01/2039
Holdings represent 13.68% of portfolio
Top 10 holdings as of 07/31/18
Allegheny Co-C-72 05.2500 12/01/2033
Geisinger Auth-A-2 05.0000 02/15/2039
Capital Region Wtr 05.0000 07/15/2042
Pa Tpk Commn-B-Ref 05.0000 06/01/2036
Pa Econ Dev Fin Auth 05.0000 03/01/2034
Allegheny Hosp Dev 05.6250 08/15/2039
Franklin Ida-Chambers 05.3750 07/01/2042
Reading 05.0000 11/01/2029
Pa Trnpke Rev -A1 05.0000 12/01/2038
Pa Turnpike Comm-Conv 00.0000 12/01/2034
Holdings represent 13.47% of portfolio
Top 10 holdings as of 06/30/18
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
Capital Region Wtr 05.0000 07/15/2042
Pa Tpk Commn-B-Ref 05.0000 06/01/2036
Franklin Ida-Chambers 05.3750 07/01/2042
Pa Econ Dev Fin Auth 05.0000 03/01/2034
Lycoming Cnty Hlth-A 05.7500 07/01/2039
Allegheny Hosp Dev 05.6250 08/15/2039
Reading 05.0000 11/01/2029
Holdings represent 13.52% of portfolio

Portfolio composition as of 09/30/18

Municipal bonds and notes 99.04%
Cash and net other assets 0.96%

Fixed income statistics as of 09/30/18

Average stated maturity 16.19 yrs.
Average effective maturity 5.82 yrs.
Option adjusted duration 6.49 yrs.
Duration to worst 4.73 yrs.
Average yield to maturity 3.99%
Average coupon 4.76%
Average price $105.88
AMT exposure 6.78%

Quality rating as of 09/30/18

AAA 0.66%
AA 34.14%
A 46.06%
BBB 14.01%
BB 1.96%
Not Rated 2.21%
Cash and net other assets 0.96%

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 (including perceptions about the risk of default and expectations about monetary policy or interest rates), changes in government intervention in the financial markets, and factors related to a specific issuer. These and other factors may also 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 Pennsylvania, 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 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. 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 09/30/18

Health care 19.21%
Local Debt 18.86%
Education 16.60%
Utilities 12.40%
Transportation 12.16%
Prerefunded 8.45%
State Debt 4.86%
Industrials 2.24%
Special Tax 2.01%
 
Other
3.21%
Cash and net other assets 0.96%
Housing 0.80%
Financials 0.74%
Other 0.71%

Sectors will vary over time.


Expenses

Expense ratio

Class A Class B Class C Class M Class R6 Class Y
Total expense ratio 0.82% 1.44% 1.59% 1.09% 0.57% 0.59%
What you pay 0.82% 1.44% 1.59% 1.09% 0.57% 0.59%

Sales charge/Dealer allowance

 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. 1.00% 5.00% 1.00% -- -- --
2 yrs. 0.00% 4.00% 0.00% -- -- --
3 yrs. 0.00% 3.00% 0.00% -- -- --
4 yrs. 0.00% 3.00% 0.00% -- -- --
5 yrs. 0.00% 2.00% 0.00% -- -- --
6 yrs. 0.00% 1.00% 0.00% -- -- --
7+ yrs. 0.00% 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 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 (including perceptions about the risk of default and expectations about monetary policy or interest rates), changes in government intervention in the financial markets, and factors related to a specific issuer. These and other factors may also 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 Pennsylvania, 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 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. 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.