Ohio Tax Exempt Income Fund  (PXOHX)

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 Ohio personal income tax as we believe is consistent with preservation of capital.

Strategy and process

  • Tax-advantaged income: The fund offers Ohio residents the potential for high current income that is free from federal income tax and Ohio 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 $8.97
-0.11% | $-0.01
$9.05
09/08/17
$8.83
12/20/16
Historical fund price

Fund facts as of 11/30/17

Total net assets
$130.80M
Turnover (fiscal year end)
15%
Dividend frequency (view rate)
Monthly
Number of holdings
137
Fiscal year-end
May
CUSIP / Fund code
746849306 / 0028
Inception date
10/23/89
Category
Tax-free Income
Open to new investors
Ticker
PXOHX

Management team


Portfolio Manager

Portfolio Manager


Literature


Market sectors that might lead in 2018
Technology’s strength seems set to continue, but with the prospect of rising rates, financials may also be among the leading market sectors.
Just how cheap are European equities?
Our analysis finds that industry group weightings play a significant role in valuation discrepancies between U.S. and European equities.
What could disturb unprecedented calm in markets?
What’s most remarkable about 2017 is the market calm, but this is not a sign that the trend will revert to the mean.

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.

8.29%

Best 5-year annualized return

(for period ending 12/31/95)


1.85%

Worst 5-year annualized return

(for period ending 12/31/08)


4.86%

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 0.03% 2.51% 2.22% 3.67%
After sales charge -3.97% 1.13% 1.39% 3.25%
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 11/30/17 -0.32 % -4.31 %
YTD as of 12/12/17 3.82 % -0.34 %

Yield

Distribution rate before sales charge
as of 12/12/17
2.53%
Distribution rate after sales charge
as of 12/12/17
2.43%
30-day SEC yield as of 11/30/17
(after sales charge)
1.55%

Risk-adjusted performance as of 10/31/17

Sharpe ratio (3 yrs.) 0.75
Information ratio (3 yrs.) -0.97

Volatility as of 10/31/17

Standard deviation (3 yrs.) 2.84%
Beta 0.86
R-squared 0.97

Lipper rankings as of 10/31/17

Ohio Municipal Debt Funds Percentile ranking Rank/Funds in category
1 yr. 49% 18/36
3 yrs. 46% 16/34
5 yrs. 47% 15/31
10 yrs. 38% 10/26

Morningstar ratings as of 10/31/17

Muni Ohio Rating Funds in category
Overall (41)
3 yrs. (41)
5 yrs. (38)
10 yrs. (33)

Distributions

Accrual days 30
Accrual start date 11/01/17
Accrual end date 11/30/17
Payable date 11/30/17
Non-taxable income $0.020838926
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

N Royalton Sd 05.0000 12/01/2047 2.66%
Oh St-A 05.0000 10/01/2022 2.42%
Hamilton Cnty-B-Cabs 00.0000 12/01/2024 1.95%
Cleveland Pub Pwr-B-2 00.0000 11/15/2025 1.87%
Toledo Et Port Ref 06.4500 12/15/2021 1.74%
Fairview Park Oh City 05.0000 12/01/2042 1.68%
Lorain Hsp-H-Catholic 05.0000 02/01/2029 1.59%
Cleveland Var-Ser A 05.0000 12/01/2029 1.57%
Cleveland Pkg-Unref 05.2500 09/15/2022 1.45%
Cleveland St Univ 05.0000 06/01/2037 1.31%
Top 10 holdings, percent of portfolio 18.24%

Full portfolio holdings as of 09/30/17

OH ST-A 05.0000 10/01/2022 2.44%
HAMILTON CNTY-B-CABS 00.0000 12/01/2024 1.87%
CLEVELAND PUB PWR-B-2 00.0000 11/15/2025 1.81%
TOLEDO ET PORT REF 06.4500 12/15/2021 1.71%
FAIRVIEW PARK OH CITY 05.0000 12/01/2042 1.65%
MASSACHUSETTS ST-A 05.0000 04/01/2047 1.60%
CLEVELAND VAR-SER A 05.0000 12/01/2029 1.55%
LORAIN HSP-H-CATHOLIC 05.0000 02/01/2029 1.55%
CLEVELAND PKG-UNREF 05.2500 09/15/2022 1.40%
OH HGR EDUCTNL FAC 05.0000 01/01/2031 1.31%
CLEVELAND ST UNIV 05.0000 06/01/2037 1.28%
PENTA CAREER CTR 05.0000 04/01/2020 1.26%
CUYAHOGA CLG-SER C 05.0000 08/01/2025 1.24%
RICKENBACKER PORT-A 05.3750 01/01/2032 1.24%
AMERN MUN PWR-A-PRAIR 05.7500 02/15/2039 1.21%
NEW ALBANY SD-REF 04.0000 12/01/2029 1.17%
BUCKEYE TOB ASSET-A-2 05.7500 06/01/2034 1.12%
CUYAHOGA CO-COPS 05.0000 12/01/2027 1.11%
N E REGL SWR DIST-REF 05.0000 11/15/2044 1.10%
N E REGL SWR DIST-REF 05.0000 11/15/2049 1.10%
COLUMBUS SWR-ADJ-B 00.8600 06/01/2032 1.08%
OH HGR EDU-UNREF 05.0000 07/01/2044 1.08%
OH TPK COMMN-A1-JR 05.0000 02/15/2048 1.05%
OH HGR EDL FAC 05.6250 12/01/2041 1.03%
OHIO HOSP FAC-A-REF 04.0000 01/01/2034 1.02%
MIDDLEBURG HGHTS HOSP 05.0000 08/01/2047 1.01%
BUTLER CO HOSP-X-REF 05.0000 05/15/2029 0.94%
WESTERVILLE-PREREF 05.0000 12/01/2026 0.94%
COLUMBUS SWR SYS-REF 05.0000 06/01/2032 0.91%
KENT ST UNIV-REF 05.0000 05/01/2030 0.91%
OHIO ST WTR DEV AUTH 05.0000 12/01/2035 0.91%
OHIO ST WTR DEV AUTH 05.0000 12/01/2035 0.91%
FRANKLIN HLTH-IMPT-A 05.6250 07/01/2026 0.90%
LAKEWOOD CITY SD-CABS 00.0000 12/01/2017 0.90%
NEW YORK ST DORM AUTH 05.0000 02/15/2034 0.90%
WESTLAKE SPL OBLIG 05.0000 12/01/2033 0.90%
HUBER HEIGHTS SD-REF 05.0000 12/01/2031 0.89%
HURON HUMAN SVCS BLDG 06.5500 12/01/2020 0.89%
LANCASTER SD 05.0000 10/01/2037 0.88%
OH ST HGR EDU FAC 05.0000 12/01/2040 0.88%
OH UNIV GEN RECPTS 05.0000 12/01/2043 0.88%
OHIO ST UNIV-A 05.0000 12/01/2039 0.88%
SCIOTO CO HOSP FACS 05.0000 02/15/2034 0.88%
UNIV OF AKRON 05.0000 01/01/2028 0.88%
UNIV OF CINCINNATI-A 05.0000 06/01/2045 0.88%
BOWLING GREEN ST UNIV 05.0000 06/01/2042 0.87%
OHIO ST-A-GEN RECPTS 05.0000 06/01/2038 0.87%
UNIV CINCINNATI-A-REF 05.0000 06/01/2030 0.87%
WILLOUGHBY-EASTLAKE O 05.0000 12/01/2046 0.87%
AMERICAN MUNI PWR-A 05.0000 02/15/2041 0.86%
FRANKLIN CO HOSP REV 05.0000 12/01/2046 0.86%
CLEVELAND WTR-X 05.0000 01/01/2042 0.85%
OHIO HOSP REVENUE-A 05.0000 01/15/2041 0.85%
UNIV CINCINNATI GEN-F 05.0000 06/01/2034 0.85%
WARREN HLTHCR-REF 05.0000 07/01/2039 0.84%
ALLEN HOSP-A-CATHOLIC 05.2500 06/01/2038 0.83%
CLEVELAND-CUYAHOGA CN 05.0000 08/01/2039 0.83%
CUYAHOGA CLG-SER C 05.2500 02/01/2029 0.83%
FRANKLIN CNTY OH HLTH 05.0000 11/15/2044 0.82%
OH AIR QLTY 05.8000 12/01/2038 0.82%
OH HGR EDL REF CASE 06.2500 10/01/2018 0.82%
GREEN COUNTY HOSP FAC 05.5000 04/01/2039 0.81%
MONTGOMERY REV-D-CATH 06.2500 10/01/2033 0.81%
OH HGR-UNIV OF DAYTON 05.5000 12/01/2036 0.80%
CLEVELAND INCOME-B 05.0000 10/01/2029 0.79%
AKRON-VAR PURP IMPT 05.0000 12/01/2025 0.78%
BROOKFIELD SD-IMPT 05.0000 01/15/2026 0.77%
OH SLDWST-RF-REPUBLIC 01.0000 11/01/2035 0.76%
SCIOTO CO HOSP FACS 05.0000 02/15/2032 0.75%
LAKE CO HOSP-C-PREREF 06.0000 08/15/2043 0.74%
GALLIA SD-REF-IMPT 05.0000 11/01/2027 0.73%
AMERICAN MUNI PWR-OHI 05.0000 02/15/2041 0.71%
CLEVELAND PKG-PREREF 05.2500 09/15/2022 0.69%
DAYTON SD-REF 05.0000 11/01/2023 0.68%
OHIO ST WTR DEV AUTH 05.0000 12/01/2034 0.68%
OHIO HOSP FAC-A-REF 05.0000 01/01/2031 0.66%
CUYAHOGA CLG DIST-D 05.0000 08/01/2032 0.65%
HAMILTON CNTY OH HOSP 05.0000 08/15/2036 0.65%
LORAIN PORT-A-REF 05.0000 11/15/2030 0.64%
LUCAS HLTH-RF/IMP-A-L 07.0000 11/01/2045 0.63%
OHIO-AMT-PORTSMOUTH 05.0000 12/31/2039 0.63%
OH HGR EDL-XAVIER UNV 05.0000 05/01/2040 0.62%
SUMMIT CO-REF 04.0000 12/01/2031 0.62%
JOBSOHIO BEVERAGE-A 05.0000 01/01/2038 0.59%
MS BUS-VAR-B-CHEVRON 00.9200 12/01/2030 0.59%
OH HGR EDUCTNL FAC 05.0000 10/01/2031 0.58%
CLEVELAND INCOME TAX 05.0000 10/01/2033 0.56%
LUCAS HLTH CARE-REF 05.5000 08/15/2030 0.55%
OH ST HGR EDU-PREREF 05.7500 11/15/2040 0.54%
OHIO HOSP FAC-A-REF 05.0000 01/01/2033 0.48%
OHIO ST SPL OBLG 05.0000 12/01/2028 0.47%
TOLEDO WTRWKS 05.0000 11/15/2036 0.45%
WARREN HLTHCR-A-REF 05.7500 07/01/2033 0.45%
CINCINNATI ECON DEV-B 05.0000 11/01/2040 0.44%
MIAMI UNIV OH 05.0000 09/01/2041 0.44%
MT HEALTHY SD-REF 05.0000 12/01/2021 0.44%
PRINCETON SD-REF 05.0000 12/01/2036 0.44%
UNIV CINCINNATI-A-REF 05.0000 06/01/2031 0.44%
UNIV OF AKRON-A-REF 05.0000 01/01/2031 0.44%
UNIV OF CINCINNATI-C 05.0000 06/01/2046 0.44%
CARLISLE SD-IMPT 05.0000 12/01/2047 0.43%
CLEVELAND GREEN BOND 05.0000 11/15/2041 0.43%
NAPOLEON SD 05.0000 12/01/2036 0.43%
YOUNGSTOWN UNIV-RCPTS 05.0000 12/15/2025 0.43%
OHIO UNIV 05.0000 12/01/2042 0.42%
CENTERVILLE OH HLTH C 05.2500 11/01/2050 0.41%
CINCINNATI-D 04.0000 12/01/2032 0.41%
HAMILTON CO HLTH-REF 05.0000 01/01/2046 0.41%
YOUNGSTOWN UNIV RCPTS 05.2500 12/15/2029 0.41%
CLEVELAND GREEN BOND 05.0000 11/15/2036 0.38%
CLEVELAND INCOME TAX 04.0000 10/01/2028 0.34%
HAMILTON CNTY-B-CABS 00.0000 12/01/2022 0.34%
OH TPK COMMN-A1-JR 05.2500 02/15/2032 0.31%
CARLISLE SD-IMPT 05.0000 12/01/2042 0.30%
OH ST HGR EDU-UNREF 05.7500 11/15/2040 0.30%
GUAM WATERWORKS AUTH 05.6250 07/01/2040 0.28%
CA POLLUTN-VAR-REF-A P/P 144A 01.2500 08/01/2023 0.26%
OHIO HGR EDU FACS-REF 05.0000 12/01/2024 0.26%
CLEVELAND INCOME TAX 04.0000 10/01/2029 0.25%
OH HSG FIN SFM-1 05.0000 11/01/2028 0.23%
TOLEDO WTRWKS 05.0000 11/15/2028 0.23%
AMERICAN MUNI PWR 05.2500 02/15/2033 0.22%
AMERICAN MUNI PWR-A 05.0000 02/15/2027 0.22%
CHILDRENS TR FD-ASSET 05.3750 05/15/2033 0.22%
CUYAHOGA CO 05.0000 12/01/2027 0.22%
GUAM GOVT-30-A 05.7500 12/01/2034 0.21%
PR S/TAX-CABS-A 00.0000 08/01/2043 0.18%
MILFORD SD -REF 05.0000 12/01/2019 0.17%
CLEVELAND URB ROCK & 06.7500 03/15/2018 0.15%
LAKE CO HOSP-C-UNREF 06.0000 08/15/2043 0.14%
OHIO-S 05.0000 05/01/2031 0.14%
AMERICAN MUNI PWR-A 05.0000 02/15/2030 0.13%
HAMILTON CO-A-REF 05.0000 12/01/2027 0.10%
CARLISLE SD-IMPT 05.0000 12/01/2037 0.09%
CUYAHOGA CO 05.0000 12/01/2025 0.09%
WESTERVILLE-UNREF 05.0000 12/01/2026 0.08%
AMERICAN PWR-UNREF 05.0000 02/15/2038 0.07%

Prior top 10 holdings

Top 10 holdings as of 10/31/17
N Royalton Sd 05.0000 12/01/2047
Oh St-A 05.0000 10/01/2022
Hamilton Cnty-B-Cabs 00.0000 12/01/2024
Cleveland Pub Pwr-B-2 00.0000 11/15/2025
Toledo Et Port Ref 06.4500 12/15/2021
Fairview Park Oh City 05.0000 12/01/2042
Lorain Hsp-H-Catholic 05.0000 02/01/2029
Cleveland Var-Ser A 05.0000 12/01/2029
Cleveland Pkg-Unref 05.2500 09/15/2022
Cleveland St Univ 05.0000 06/01/2037
Holdings represent 18.24% of portfolio
Top 10 holdings as of 09/30/17
Oh St-A 05.0000 10/01/2022
Hamilton Cnty-B-Cabs 00.0000 12/01/2024
Cleveland Pub Pwr-B-2 00.0000 11/15/2025
Toledo Et Port Ref 06.4500 12/15/2021
Fairview Park Oh City 05.0000 12/01/2042
Massachusetts St-A 05.0000 04/01/2047
Cleveland Var-Ser A 05.0000 12/01/2029
Lorain Hsp-H-Catholic 05.0000 02/01/2029
Cleveland Pkg-Unref 05.2500 09/15/2022
Oh Hgr Eductnl Fac 05.0000 01/01/2031
Holdings represent 16.89% of portfolio
Top 10 holdings as of 08/31/17
Oh St-A 05.0000 10/01/2022
Hamilton Cnty-B-Cabs 00.0000 12/01/2024
Cleveland Pub Pwr-B-2 00.0000 11/15/2025
Toledo Et Port Ref 06.4500 12/15/2021
Fairview Park Oh City 05.0000 12/01/2042
Massachusetts St-A 05.0000 04/01/2047
Cleveland Var-Ser A 05.0000 12/01/2029
Lorain Hsp-H-Catholic 05.0000 02/01/2029
Cleveland Pkg-Unref 05.2500 09/15/2022
Oh Hgr Eductnl Fac 05.0000 01/01/2031
Holdings represent 16.79% of portfolio
Top 10 holdings as of 07/31/17
Oh St-A 05.0000 10/01/2022
Hamilton Cnty-B-Cabs 00.0000 12/01/2024
Cleveland Pub Pwr-B-2 00.0000 11/15/2025
Toledo Et Port Ref 06.4500 12/15/2021
Fairview Park Oh City 05.0000 12/01/2042
Massachusetts St-A 05.0000 04/01/2047
Lorain Hsp-H-Catholic 05.0000 02/01/2029
Cleveland Var-Ser A 05.0000 12/01/2029
Cleveland Pkg-Unref 05.2500 09/15/2022
Oh Hgr Eductnl Fac 05.0000 01/01/2031
Holdings represent 16.73% of portfolio

Portfolio composition as of 10/31/17

Municipal bonds and notes 96.95%
Cash and net other assets 3.05%

Fixed income statistics as of 10/31/17

Average stated maturity 16.63 yrs.
Average effective maturity 6.22 yrs.
Option adjusted duration 6.79 yrs.
Duration to worst 4.86 yrs.
Average yield to maturity 3.30%
Average coupon 4.68%
Average price $109.54
AMT exposure 0.92%

Quality rating as of 10/31/17

AAA 3.91%
AA 55.02%
A 25.47%
BBB 6.83%
BB 0.22%
B 1.11%
Not Rated 4.39%
Cash and net other assets 3.05%

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

Education 19.17%
Local Debt 18.96%
Health care 16.91%
Utilities 13.39%
Prerefunded 11.13%
Special Tax 5.32%
Transportation 5.24%
Cash and net other assets 3.05%
State Debt 1.53%
 
Other
5.30%
Tobacco 1.33%
Financials 1.28%
Housing 1.05%
Industrials 1.04%
Other 0.45%
Land 0.15%

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% 1.46% 1.61% 1.11% 0.61%
What you pay 0.83% 1.46% 1.61% 1.11% 0.61%

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.