New Jersey Tax Exempt Income Fund  (PTNJX)

Seeking a high level of tax-free income

Objective

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

Strategy and process

  • Tax-advantaged income: The fund offers New Jersey residents the potential for high current income that is free from federal income tax and New Jersey 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 $9.27
0.00% | $0.00
$9.31
09/08/17
$9.00
12/01/16
Historical fund price

Fund facts as of 10/31/17

Total net assets
$183.61M
Turnover (fiscal year end)
23%
Dividend frequency (view rate)
Monthly
Number of holdings
143
Fiscal year-end
May
CUSIP / Fund code
746915107 / 0029
Inception date
02/20/90
Category
Tax-free Income
Open to new investors
Ticker
PTNJX

Management team


Portfolio Manager

Portfolio Manager


Literature


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Performance

Consistency of positive performance over five years

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

Performance shown above 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 see below.

8.32%

Best 5-year annualized return

(for period ending 12/31/95)


1.92%

Worst 5-year annualized return

(for period ending 12/31/08)


4.94%

Average 5-year annualized return


  • 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 0.55% 2.65% 2.05% 3.90%
After sales charge -3.47% 1.26% 1.22% 3.47%
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 10/31/17 0.47 % -3.55 %
YTD as of 11/17/17 5.14 % 0.93 %

Yield

Distribution rate before sales charge
as of 11/17/17
3.18%
Distribution rate after sales charge
as of 11/17/17
3.05%
30-day SEC yield as of 10/31/17
(after sales charge)
1.66%

Risk-adjusted performance as of 10/31/17

Sharpe ratio (3 yrs.) 0.74
Information ratio (3 yrs.) -0.61

Volatility as of 10/31/17

Standard deviation (3 yrs.) 3.15%
Beta 0.95
R-squared 0.95

Lipper rankings as of 10/31/17

New Jersey Municipal Debt Funds Percentile ranking Rank/Funds in category
1 yr. 30% 15/49
3 yrs. 54% 26/48
5 yrs. 60% 27/44
10 yrs. 52% 20/38

Morningstar ratings as of 10/31/17

Muni New Jersey Rating Funds in category
Overall (48)
3 yrs. (48)
5 yrs. (44)
10 yrs. (38)

Distributions

Accrual days 32
Accrual start date 10/02/17
Accrual end date 10/31/17
Payable date 10/31/17
Non-taxable income $0.023377463
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.


Holdings

Top 10 holdings as of 10/31/17

Port Auth Cons 93rd 06.1250 06/01/2094 3.46%
Garden St Prsrv-Cab-B 00.0000 11/01/2024 2.76%
Nj Econ-Ref-Amt-A 05.7000 10/01/2039 2.05%
New Jersey St Econ De 05.0000 11/01/2026 1.93%
Nj St Eco Dev-Nn 05.0000 03/01/2025 1.81%
Nj St Hgr Ed-1a-Amt 05.0000 12/01/2022 1.56%
Nj Hlth Var-C-Virtua 00.8400 07/01/2043 1.45%
Nj Trn Sys Ser A-Amba 05.0000 12/15/2032 1.39%
Garden St Preserv-A 05.7500 11/01/2028 1.37%
Nj St Edu Facs Auth-B 05.0000 07/01/2034 1.34%
Top 10 holdings, percent of portfolio 19.12%

Full portfolio holdings as of 09/30/17

PORT AUTH CONS 93RD 06.1250 06/01/2094 3.43%
GARDEN ST PRSRV-CAB-B 00.0000 11/01/2024 2.76%
NJ ECON-REF-AMT-A 05.7000 10/01/2039 2.10%
NEW JERSEY ST ECON DE 05.0000 11/01/2026 1.92%
NJ ST ECO DEV-NN 05.0000 03/01/2025 1.81%
NJ ST HGR ED-1A-AMT 05.0000 12/01/2022 1.55%
NJ HLTH VAR-C-VIRTUA 00.8000 07/01/2043 1.46%
NJ TRN SYS SER A-AMBA 05.0000 12/15/2032 1.40%
GARDEN ST PRESERV-A 05.7500 11/01/2028 1.36%
NJ ST EDU FACS AUTH-B 05.0000 07/01/2034 1.34%
GLOUCESTER IMPT-CNTY 05.0000 04/01/2028 1.32%
NJ HLTH CARE GEN HOSP 06.7500 07/01/2019 1.30%
DALLAS AREA RAPID-A 05.0000 12/01/2046 1.28%
NJ ST TRANSN -D 05.2500 12/15/2023 1.27%
NJ ST ECON DEV AUTH 05.0000 06/01/2032 1.25%
NJ HLTH CARE-A-REF 05.0000 07/01/2043 1.24%
NJ TRANSPRTN TRUST-AA 05.2500 06/15/2032 1.23%
MTA HUDSON RAIL YRD-A 05.0000 11/15/2051 1.22%
NJ HLTHCARE FACS-REF 05.0000 07/01/2041 1.21%
N HUDSON SWRG-A 05.0000 06/01/2042 1.20%
NJ ECON DEV AUTH-REF 05.0000 06/15/2026 1.20%
NJ TRANSPRTN TRUST-AA 05.2500 06/15/2041 1.20%
NJ HLTH-CHILTON 05.7500 07/01/2039 1.19%
NJ TPK SER E 05.2500 01/01/2040 1.16%
NJ HGR ED-SER A 05.0000 06/01/2018 1.14%
ESSEX CNTY IMPT-UNREF 05.0000 12/15/2023 1.11%
HILLSBOROUGH SD REF 05.3750 10/01/2021 1.10%
NJ HGR ED-SER A 05.6250 06/01/2030 1.03%
NJ TRN FD CAB-SER C 00.0000 12/15/2024 1.03%
RUTGERS UNIV-VAR-RF-A 00.8300 05/01/2018 1.03%
MET TRANSPRTN AUTH NY 05.0000 11/15/2037 0.97%
NJ ST ECON DEV-REF-A 05.0000 10/01/2023 0.97%
NJ EDL-REF-A-KEAN UNI 05.5000 09/01/2036 0.96%
ESSEX IMPT REF-GTD 05.5000 10/01/2030 0.95%
NJ ECON DEV-MSU HSG 05.8750 06/01/2042 0.93%
UNION UTILS-A-REF 05.2500 12/01/2031 0.91%
NJ EDL-REF-A-KEAN UNI 05.0000 09/01/2024 0.88%
FREEHOL REGL HSD 05.0000 03/01/2019 0.87%
NJ HLTH-ST PETERS UNV 05.7500 07/01/2037 0.85%
BURLINGTON BRDG-EVERG 05.6250 01/01/2038 0.80%
NJ TURNPIKE AUTH-E 05.0000 01/01/2034 0.80%
NJ TRN SYS SER A 05.8750 12/15/2038 0.78%
NJ EDU FACS-A 05.0000 07/01/2035 0.76%
RENO S/TAX-VAR-RF-RET 00.9900 06/01/2042 0.75%
NJ ECON DEV AUTH-AMT 05.0000 01/01/2031 0.71%
TOB SETTLEMENT SER 1A 05.0000 06/01/2041 0.68%
NJ TRN FD CAB-SER -A 00.0000 12/15/2033 0.67%
PORT AUTH OF NEW YORK 05.0000 10/15/2041 0.65%
RUTGERS STATE UNIV-M 05.0000 05/01/2034 0.65%
NEW JERSEY ST TURNPIK 05.0000 01/01/2040 0.64%
NJ ECON DEV AUTH 06.0000 10/01/2033 0.64%
NJ EDU FACS AUTH-G 05.0000 07/01/2030 0.64%
NJ EDUCTNL FACS-E-REF 05.0000 07/01/2023 0.64%
NJ TPK AUTH-A-REF 05.0000 01/01/2035 0.64%
NJ TURNPIKE AUTH-A1 05.0000 01/01/2035 0.64%
NJ TURNPIKE-A 05.0000 01/01/2033 0.64%
PORT AUTH OF NEW YORK 05.0000 05/01/2045 0.64%
TEXAS ST-A-REF-TRNSPR 05.0000 10/01/2044 0.64%
AMERICAN MUNI PWR-OHI 05.0000 02/15/2038 0.63%
NEW JERSEY FAC AUTH-D 05.0000 07/01/2022 0.63%
NJ TRN FD SER A 05.2500 12/15/2022 0.63%
ATLANTIC CITY NJ-B 05.0000 03/01/2037 0.62%
ESSEX IMPT-RF-CONS-06 05.2500 12/15/2020 0.62%
NEW JERSEY ST HLTH CA 05.0000 07/01/2042 0.62%
NJ HLTH CARE FACS FIN 05.0000 07/01/2039 0.62%
NJ HLTH-HACKENSACK UN 05.1250 01/01/2021 0.62%
NJ HLTHCARE FACS-A 05.0000 07/01/2039 0.62%
PORT AUTH -SPEC PROJ 06.0000 12/01/2042 0.62%
ATLANTIC CITY-A-REF 05.0000 03/01/2042 0.61%
DELAWARE RVR & BAY 05.0000 01/01/2042 0.61%
NEW JERSEY ST HLTH CA 05.0000 07/01/2044 0.61%
NJ ECON DEV AUTH-REF 05.2500 06/15/2032 0.61%
NJ ECON DEV-A 05.0000 07/15/2030 0.61%
NJ HLTHCR FACS-REF 05.0000 08/15/2031 0.61%
NEW JERSEY ST HLTH 05.0000 07/01/2045 0.60%
NEW JERSEY ST TRANSPR 05.0000 06/15/2028 0.60%
NJ HLTH-RF-HOLY NAME 05.0000 07/01/2025 0.59%
NJ ST TRANSN-B 05.2500 06/15/2036 0.59%
NJ TPK AUTH-A-PREREF 05.0000 01/01/2024 0.59%
PR COMWLTH-REF-A-IMPT 05.5000 07/01/2020 0.59%
NJ ECON DEV AUTH-A 04.7500 06/15/2032 0.58%
NJ HLTH ST JOSEPHS 06.6250 07/01/2038 0.58%
NJ ECON DEV-AA-UNREF 05.2500 12/15/2033 0.57%
NJ EDL REF-E-NJ CITY 05.0000 07/01/2028 0.57%
NEW JERSEY ST HLTH CA 04.0000 07/01/2041 0.56%
NJ HLTH-HACKENSACK UN 05.2500 01/01/2031 0.56%
NJ TRN SYS SER A 05.0000 12/15/2027 0.56%
NJ ECON-MOTOR VEH SUR 05.0000 07/01/2027 0.55%
NJ ED FAC-D-GEORGIAN 05.0000 07/01/2027 0.55%
NJ ED FAC-D-GEORGIAN 05.2500 07/01/2027 0.55%
NJ MFH-A 04.2000 11/01/2032 0.55%
NJ EDU FACS-PREREF 05.0000 07/01/2025 0.54%
NJ INST TECH-A-UNREF 05.0000 07/01/2032 0.54%
SUSSEX UTILS-CABS-B 00.0000 12/01/2030 0.54%
NJ HLTH-VAR-A4-COMP P 00.9000 07/01/2027 0.53%
PA ECON DEV-VAR-REF-B 01.1000 12/01/2030 0.53%
NJ ST HLTH-REF-A 05.0000 07/01/2035 0.52%
TOB SETTLEMENT CAB-1B 00.0000 06/01/2041 0.51%
NEW JERSEY EDUCTNL 05.0000 07/01/2037 0.50%
DELAWARE RVR PORT 05.0000 01/01/2028 0.49%
NJ ECON DEV AUTH-A 05.0000 01/01/2035 0.45%
NJ HLTH CARE-REF-HACK 05.0000 01/01/2034 0.45%
BAYONNE-REF-IMPT 05.0000 07/01/2039 0.44%
NJ ECON DEV AUTH-A 06.0000 07/01/2032 0.44%
NJ HLTH FACS-A-UNREF 05.0000 10/01/2028 0.44%
NEW JERSEY ST TRANSPR 05.0000 06/15/2030 0.43%
N BERGEN UTIL CAB-SUB 00.0000 12/15/2026 0.42%
NJ ECON-A-CRANES MILL 06.0000 07/01/2038 0.42%
NJ ECON-AMT-RF-D-NJ A 04.8750 11/01/2029 0.42%
N BERGEN UTIL CAB-SUB 00.0000 12/15/2027 0.41%
IN FIN AUTH-B-REF 01.0500 05/01/2028 0.38%
NJ EDU FACS-PREREF 05.0000 07/01/2026 0.36%
NJ ECON DEV AUTH-AAA 05.0000 06/15/2036 0.33%
NJ TURNPIKE AUTH-C5 01.3200 01/01/2028 0.33%
NEW JERSEY ST EDUCTNL 05.0000 07/01/2034 0.32%
NJ EDU FACS-REFND-REF 05.0000 07/01/2025 0.32%
NJ EDUCTNL FACS-F-REF 05.0000 07/01/2029 0.32%
GUAM GOVT-30-A 05.7500 12/01/2034 0.31%
NJ EDL-REF-B 07.5000 12/01/2032 0.31%
NJ HLTH CARE FAC FIN 05.0000 07/01/2046 0.31%
NJ ECON DEV-A-REF 05.0000 07/01/2029 0.30%
NJ ECON-B-RF-NJ AMERN 05.6000 11/01/2034 0.30%
GLOUCESTER IMPT-CNTY 05.0000 04/01/2023 0.29%
NJ EDU FACS AUTH-A 05.0000 07/01/2037 0.29%
NJ ECON DEV-Y 05.0000 09/01/2033 0.28%
NJ HLTH CARE-A-REF 04.0000 07/01/2043 0.28%
SOUTH JERSEY NJ PORT 05.0000 01/01/2035 0.28%
NJ HLTH FACS-A-PREREF 05.0000 07/01/2027 0.27%
TOB SETTLEMENT SER 1A 04.7500 06/01/2034 0.27%
GUAM WATERWORKS AUTH 05.6250 07/01/2040 0.26%
NJ INST TECH-A-PREREF 05.0000 07/01/2032 0.24%
NJ EDU FACS-REFND-REF 05.0000 07/01/2026 0.21%
SALEM CO POLL CNTRL-A 05.0000 12/01/2023 0.21%
NJ ECON CONTINENTAL 05.2500 09/15/2029 0.18%
PORT NY/NJ 5TH-KIAC-4 06.7500 10/01/2019 0.16%
CAMDEN CO IMPT-REF 05.0000 02/15/2035 0.15%
NJ ECON DEV-A 05.0000 07/01/2037 0.15%
SOUTH JERSEY NJ PORT 05.0000 01/01/2039 0.14%
NEW JERSEY HGR EDU 05.0000 12/01/2026 0.13%
NJ HLTH FACS-A-PREREF 05.0000 10/01/2028 0.13%
NJ EDUCTNL FACS-UNREF 05.0000 07/01/2028 0.08%
NJ TPK AUTH-A-UNREF 05.0000 01/01/2024 0.05%
NEW JERSEY HSG & MTG 06.3750 10/01/2028 0.02%
NJ HLTH FACS-A-UNREF 05.0000 07/01/2027 0.01%
ESSEX CNTY IMPT-REFD 05.0000 12/15/2023 0.00%

Prior top 10 holdings

Top 10 holdings as of 10/31/17
Port Auth Cons 93rd 06.1250 06/01/2094
Garden St Prsrv-Cab-B 00.0000 11/01/2024
Nj Econ-Ref-Amt-A 05.7000 10/01/2039
New Jersey St Econ De 05.0000 11/01/2026
Nj St Eco Dev-Nn 05.0000 03/01/2025
Nj St Hgr Ed-1a-Amt 05.0000 12/01/2022
Nj Hlth Var-C-Virtua 00.8400 07/01/2043
Nj Trn Sys Ser A-Amba 05.0000 12/15/2032
Garden St Preserv-A 05.7500 11/01/2028
Nj St Edu Facs Auth-B 05.0000 07/01/2034
Holdings represent 19.12% of portfolio
Top 10 holdings as of 09/30/17
Port Auth Cons 93rd 06.1250 06/01/2094
Garden St Prsrv-Cab-B 00.0000 11/01/2024
Nj Econ-Ref-Amt-A 05.7000 10/01/2039
New Jersey St Econ De 05.0000 11/01/2026
Nj St Eco Dev-Nn 05.0000 03/01/2025
Nj St Hgr Ed-1a-Amt 05.0000 12/01/2022
Nj Hlth Var-C-Virtua 00.9200 07/01/2043
Nj Trn Sys Ser A-Amba 05.0000 12/15/2032
Garden St Preserv-A 05.7500 11/01/2028
Nj St Edu Facs Auth-B 05.0000 07/01/2034
Holdings represent 19.13% of portfolio
Top 10 holdings as of 08/31/17
Port Auth Cons 93rd 06.1250 06/01/2094
Garden St Prsrv-Cab-B 00.0000 11/01/2024
Nj Econ-Ref-Amt-A 05.7000 10/01/2039
New Jersey St Econ De 05.0000 11/01/2026
Nj St Eco Dev-Nn 05.0000 03/01/2025
Reno S/Tax-Var-Rf-Ret 00.9400 06/01/2042
Nj St Hgr Ed-1a-Amt 05.0000 12/01/2022
Nj Hlth Var-C-Virtua 00.5300 07/01/2043
Nj Trn Sys Ser A-Amba 05.0000 12/15/2032
Garden St Preserv-A 05.7500 11/01/2028
Holdings represent 19.32% of portfolio
Top 10 holdings as of 07/31/17
Port Auth Cons 93rd 06.1250 06/01/2094
Garden St Prsrv-Cab-B 00.0000 11/01/2024
Nj Econ-Ref-Amt-A 05.7000 10/01/2039
New Jersey St Econ De 05.0000 11/01/2026
Nj St Eco Dev-Nn 05.0000 03/01/2025
Reno S/Tax-Var-Rf-Ret 00.8200 06/01/2042
Nj St Hgr Ed-1a-Amt 05.0000 12/01/2022
Nj Hlth Var-C-Virtua 00.3100 07/01/2043
Nj Trn Sys Ser A-Amba 05.0000 12/15/2032
Garden St Preserv-A 05.7500 11/01/2028
Holdings represent 19.10% of portfolio

Portfolio composition as of 10/31/17

Municipal bonds and notes 95.22%
Cash and net other assets 4.78%

Fixed income statistics as of 10/31/17

Average stated maturity 17.00 yrs.
Average effective maturity 5.24 yrs.
Option adjusted duration 5.90 yrs.
Duration to worst 4.30 yrs.
Average yield to maturity 3.40%
Average coupon 4.62%
Average price $107.19
AMT exposure 7.10%

Quality rating as of 10/31/17

AAA 3.66%
AA 31.84%
A 40.50%
BBB 13.68%
BB 1.74%
B 0.67%
Not Rated 3.13%
Cash and net other assets 4.78%

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, and factors related to a specific issuer or industry. 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 10/31/17

State Debt 18.11%
Transportation 12.26%
Prerefunded 11.72%
Health care 10.98%
Education 10.76%
Utilities 8.21%
Local Debt 7.47%
Other 6.15%
Special Tax 5.40%
 
Other
8.94%
Cash and net other assets 4.78%
Housing 2.06%
Tobacco 1.45%
Industrials 0.65%

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 0.81% 1.44% 1.59% 1.09% 0.59%
What you pay 0.81% 1.44% 1.59% 1.09% 0.59%

Sales charge

Investment Breakpoint Class A Class B Class C Class M Class Y
$0-$49,999 4.00% 0.00% 0.00% 3.25% --
$50,000-$99,999 4.00% 0.00% 0.00% 2.25% --
$100,000-$249,999 3.25% -- 0.00% 1.25% --
$250,000-$499,999 2.50% -- 0.00% 1.00% --
$500,000-$999,999 0.00% -- -- -- --
$1M-$4M 0.00% -- -- -- --
$4M-$50M 0.00% -- -- -- --
$50M+ 0.00% -- -- -- --

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% -- --

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, and factors related to a specific issuer or industry. 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.