ACTIVE INCOME

Analyzing a diverse municipal bond universe

The municipal bond market is large and diverse, and that's why Putnam has built a deep team of researchers to harness investment opportunities for our funds.

Tax Exempt Income Fund (PTEYX)

Seeking a high level of tax-free income since 1976

Tax-Free High Yield Fund (PTFYX)

This fund received a Overall Morningstar Rating out of 193 funds in the High Yield Muni category based on total return as of 08/31/22

A large and skilled research team

Our experts have diverse skills in credit analysis 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.

The muni bond advantage

Market outlook and resources

Cautious stance as slowing growth may help yields stabilize

Cautious stance as slowing growth may help yields stabilize

Although central bank efforts to fight inflation could end in recession, we are constructive on some areas of fixed income.

Fixed Income OutlookFIO | Q3 2022
Covid-related labor imbalances complicate Fed's inflation fight

Covid-related labor imbalances complicate Fed's inflation fight

Demographic shifts and labor imbalances might have disturbed consumption-saving decisions that impact inflation.

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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.