Active Income

New York Tax Exempt Income Fund (Class A)  (PTEIX)

Seeking a high level of tax-free income

Highlights

Objective

The fund seeks as high a level of current income exempt from federal income tax and New York State and City personal income taxes as we believe to be consistent with preservation of capital.

Strategy and process

  • Tax-advantaged income: The fund offers New York residents the potential for high current income that is free from federal income tax and New York State and City 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 $8.82
0.11% | $0.01 		$8.83
08/28/19 		$8.33
01/23/19
(Optional)

Fund facts as of 12/31/19

Total net assets
$1,033.11M
Turnover (fiscal year end)
28%
Dividend frequency (view rate)
Monthly
Number of holdings
345
Fiscal year-end
November
CUSIP / Fund code
74683Q309 / 0016
Inception date
09/02/83
Category
Tax-free Income
Open to new investors
Ticker
PTEIX

Management team

Paul M. Drury, CFA

Portfolio Manager

Garrett L. Hamilton, CFA

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.

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.

13.59%

Best 5-year annualized return

(for period ending 06/30/89)

1.28%

Worst 5-year annualized return

(for period ending 12/31/08)

5.86%

Average 5-year annualized return

  • Total return (%) as of 12/31/19

  • Annual performance as of 12/31/19

Annualized Total return (%) as of 12/31/19

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge 7.56% 4.25% 3.19% 3.96%
After sales charge 3.26% 2.84% 2.35% 3.54%
Bloomberg Barclays Municipal Bond Index 7.54%4.72%3.53%4.34%

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 4.00% and 3.25% for income funds (2.25% for class A of 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, 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, 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). Performance for class A, C, and Y shares of Putnam Mortgage Opportunities Fund before their inception is derived from the historical performance of class I shares, which have been adjusted for the applicable sales charge (or CDSC) and the higher operating expenses for such 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 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 12/31/19 0.33% -3.68%
YTD as of 01/22/20 1.17% -2.88%

Yield

Distribution rate before sales charge
as of 01/22/20		 2.35%
Distribution rate after sales charge
as of 01/22/20		 2.26%
30-day SEC yield as of 12/31/19
(after sales charge)		 1.33%

Risk-adjusted performance as of 12/31/19

Sharpe ratio (3 yrs.) 1.11
Information ratio (3 yrs.) -1.04

Volatility as of 12/31/19

Standard deviation (3 yrs.) 2.37%
Beta 0.96
R-squared 0.97

Lipper rankings as of 12/31/19

Time period Rank/Funds in category Percentile ranking
1 yr. 41/98 42%
3 yrs. 43/86 50%
5 yrs. 45/85 53%
10 yrs. 33/64 51%
Lipper category: New York Municipal Debt Funds

Morningstar Ratings™ as of 12/31/19

Time period Funds in category Morningstar Rating™
Overall 65
3 yrs. 65
5 yrs. 64
10 yrs. 46
Morningstar category: Muni New York Long

Distributions

Accrual days 30
Accrual start date 12/02/19
Accrual end date 12/31/19
Payable date 12/31/19
Non-taxable income $0.016787202
Extra taxable income --
  
Record/Ex dividend date 12/27/19
Payable date 12/31/19
Income --
Extra income $0.002
Short-term cap. gain --
Long-term cap. gain --

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

Ny Liberty Dev Corp P/P 144a 05.0000 11/15/2044 1.73%
Tsasc Inc-A-Ref 05.0000 06/01/2041 1.70%
Nyc Muni Wtr Fin -Bb1 04.0000 06/15/2049 1.65%
New York City Muni Fi 05.0000 06/15/2046 1.42%
Triboro Bridge-F-Ref 00.9000 11/01/2032 1.36%
New York St Dorm Auth 05.0000 07/01/2042 1.31%
Ny Dorm Auth-E 05.0000 03/15/2038 1.22%
New York St Dorm Auth 05.0000 02/15/2041 1.18%
New York-F-1 05.0000 04/01/2043 1.12%
New York-A-A-1 04.0000 08/01/2040 1.12%
Top 10 holdings, percent of portfolio 13.81%

Disclosures

(PDF)

Portfolio composition as of 12/31/19

Municipal bonds and notes 97.86%
Cash and net other assets 2.14%

Fixed income statistics as of 12/31/19

Average stated maturity 19.52 yrs.
Average effective maturity 6.12 yrs.
Option adjusted duration 7.59 yrs.
Duration to worst 5.39 yrs.
Average yield to maturity 3.89%
Average coupon 4.81%
AMT exposure 5.49%

Quality rating as of 12/31/19

AAA 9.02%
AA 43.94%
A 24.13%
BBB 13.41%
BB 1.24%
B 1.83%
CCC and Below 0.18%
Not Rated 4.11%
Cash and net other assets 2.14%

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 New York State, 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.

Top industry sectors as of 12/31/19

Special Tax 18.25%
Education 16.95%
Transportation 13.10%
Utilities 12.75%
Health care 7.86%
Local Debt 6.90%
Other 6.01%
State Debt 4.83%
Tobacco 3.58%
 
Other		 9.77%
Housing 3.00%
Prerefunded 2.35%
Cash and net other assets 2.14%
Financials 2.03%
Industrials 0.19%
Land 0.06%

Sectors will vary over time.

Expenses

Expense ratio

 Class A Class B Class C Class R6 Class Y
Total expense ratio 0.75% 1.38% 1.53% 0.52% 0.53%
What you pay 0.75% 1.38% 1.53% 0.52% 0.53%

Sales charge

Investment Breakpoint Class A Class B Class C Class R6 Class Y
$0-$49,999 4.00% 0.00% 0.00% -- --
$50,000-$99,999 4.00% 0.00% 0.00% -- --
$100,000-$249,999 3.25% -- 0.00% -- --
$250,000-$499,999 2.50% -- 0.00% -- --
$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 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% -- --

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 New York State, 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.