Always Diligent. Always Active.

Short-Term Municipal Income Fund (Class Y)  (PSMYX)

A national portfolio of short-term municipal bonds seeking tax-free income with lower interest-rate sensitivity

Highlights

Objective

The fund seeks as high a level of current income exempt from federal income tax as the managers believe is consistent with preservation of capital.

Strategy and process

  • Tax-advantaged income: Pursues income free from federal income tax with a portfolio of municipal bonds selected from many states and market sectors.
  • Focus on total return: Seeks to offer a competitive yield and the potential for price appreciation while striving to protect investors' capital through prudent security selection and active risk management.
  • High-quality, short-term portfolio: The national portfolio features a range of high-quality, short-term bonds that seek to provide tax-free income with lower interest-rate sensitivity.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $10.10
0.00% | $0.00
$10.10
08/15/19
$9.92
10/15/18
Historical fund price

Fund facts as of 07/31/19

Total net assets
$22.35M
Turnover (fiscal year end)
76%
Dividend frequency (view rate)
Monthly
Number of holdings
98
Fiscal year-end
November
CUSIP / Fund code
74676A824 / 1880
Inception date
03/18/13
Category
Tax-free Income
Open to new investors
Ticker
PSMYX

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.

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.

1.24%

Best 5-year annualized return

(for period ending 06/30/19)


0.73%

Worst 5-year annualized return

(for period ending 03/31/18)


0.96%

Average 5-year annualized return


  • Total return (%) as of 06/30/19

  • Annual performance as of 06/30/19

Annualized Total return (%) as of 06/30/19

Annualized performance 1 yr. 3 yrs. 5 yrs. Life (inception: 03/18/13 )
Before sales charge 2.98% 1.54% 1.24% 1.17%
After sales charge N/A N/A N/A N/A
Bloomberg Barclays 3 Year Municipal Index 3.48%1.46%1.44%--

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, 4.00% and 3.25% for income funds and 2.25% and 0.75% for 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, which is 3% in the first year, declining to 1% in the fourth 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). 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 and M shares of Putnam money market funds have no initial sales charge. For a portion of the periods, some funds had expense 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 07/31/19 0.36% -
YTD as of 08/23/19 2.58% -

Yield

Distribution rate before sales charge
as of 08/23/19
2.03%
Distribution rate after sales charge
as of 08/23/19
2.03%
30-day SEC yield with subsidy
as of 07/31/19
1.72%
30-day SEC yield without subsidy
as of 07/31/19
0.86%

Risk-adjusted performance as of 07/31/19

Sharpe ratio (3 yrs.) 0.25
Information ratio (3 yrs.) 0.07

Volatility as of 07/31/19

Standard deviation (3 yrs.) 0.91%
Beta 0.56
R-squared 0.89

Lipper rankings as of 07/31/19

Time period Rank/Funds in category Percentile ranking
1 yr. 40/132 31%
3 yrs. 12/112 11%
5 yrs. 22/99 22%
10 yrs. --  
Lipper category: Short Municipal Debt Funds

Morningstar Ratings as of 07/31/19

Time period Funds in category Morningstar Rating
Overall 179
3 yrs. 179
5 yrs. 162
Morningstar category: Muni National Short

Distributions

Accrual days 31
Accrual start date 07/01/19
Accrual end date 07/31/19
Payable date 07/31/19
Non-taxable income $0.016558162
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.


Holdings

Top 10 holdings as of 07/31/19

Miami Spl Oblg-B-Babs 06.9700 04/01/2039 3.44%
San Antonio Elec-A 02.2500 02/01/2033 3.18%
Illinois St 05.0000 10/01/2024 2.52%
Port Auth Ny & Nj-Amt 05.0000 09/01/2021 2.46%
Main Street Natural-A 05.0000 05/15/2021 2.39%
Met Wtr-Txb-A-Babs 06.9470 07/01/2040 2.34%
Il Toll Hwy Auth-A 05.0000 12/01/2019 2.28%
New York City-C-Txbl 02.5500 12/01/2019 2.25%
Il Fin Auth-Var-Ref 02.0160 11/01/2034 2.25%
Sc Transprtn-2003b 01.9440 10/01/2031 2.25%
Top 10 holdings, percent of portfolio 25.37%

Full portfolio holdings as of 06/30/19

MIAMI SPL OBLG-B-BABS 06.9700 04/01/2039 3.43%
SAN ANTONIO ELEC-A 02.2500 02/01/2033 3.21%
ILLINOIS ST 05.0000 10/01/2024 2.58%
PORT AUTH NY & NJ-AMT 05.0000 09/01/2021 2.46%
MAIN STREET NATURAL-A 05.0000 05/15/2021 2.42%
MET WTR-TXB-A-BABS 06.9470 07/01/2040 2.39%
IL TOLL HWY AUTH-A 05.0000 12/01/2019 2.32%
NEW YORK CITY-C-TXBL 02.5500 12/01/2019 2.29%
CA PUB FIN AUTH-C 01.2200 08/01/2052 2.28%
E-470-A-SR-LIBOR 02.0160 09/01/2039 2.28%
GILROY UNIF SD-TXBL 02.4800 08/01/2019 2.28%
HARRIS CULT ED VAR-C1 01.7000 12/01/2024 2.28%
MS BUS FIN-VAR-C-CHEV 01.7000 12/01/2030 2.28%
IL FIN AUTH-VAR-REF 02.1340 11/01/2034 2.28%
SC TRANSPRTN-2003B 02.0500 10/01/2031 2.28%
CA INFRA & ECON DEV-A 02.0120 10/01/2047 2.28%
LEANDER ISD-CABS-RF-A 00.0000 08/15/2020 2.25%
ILLINOIS ST-D 05.0000 11/01/2021 2.20%
GRANT CNTY WA PUBLIC 02.0000 01/01/2044 1.83%
DULUTH ISD 709-B-REF 05.0000 02/01/2020 1.70%
PORT OF SEATTLE-C 05.0000 05/01/2024 1.66%
MICHIGAN ST HOSP FIN 01.9000 11/15/2047 1.63%
DIST OF COLUMBIA- REV 05.0000 07/01/2027 1.63%
AZ LOTTERY-REF 05.0000 07/01/2025 1.63%
CALIFORNIA ST-C 02.3790 12/01/2028 1.60%
TX SFM-NON AMT-A 05.2500 09/01/2028 1.53%
CENTRL TX REGL-A-REF 05.0000 01/01/2022 1.48%
KING CNTY WA SWR REVE 02.6000 01/01/2043 1.39%
CA ST 06.2000 10/01/2019 1.38%
MASON SD-BANS 04.0000 08/22/2019 1.37%
NV DEPT BUSINESS-AMT 01.8750 12/01/2026 1.37%
FL TPK AUTH-B 06.1400 07/01/2025 1.37%
TEXAS MUNI PWR AGY 05.0000 09/01/2047 1.30%
DULUTH MN ISD COPS-A 03.0000 03/01/2020 1.08%
MS BUSINESS FIN-REF 02.5000 04/01/2022 1.03%
ALLEGHENY HOSP DEV-A 05.0000 04/01/2022 0.99%
CHICAGO WSTWTR-2ND 05.0000 01/01/2023 0.98%
PA TURNPIKE COMM-REF 05.0000 12/01/2021 0.98%
KY PUB ENERGY AUTH-B 04.0000 07/01/2020 0.93%
ATLANTIC CITY NJ-B 05.0000 03/01/2020 0.93%
CALIFORNIA STWD CMNTY 03.0000 07/01/2025 0.93%
BURKE CNTY DEV AUTH 02.5000 01/01/2052 0.93%
STHRN CA ST PUB PWR-A 02.2500 07/01/2040 0.92%
CA INFRA & ECON DEV-D 02.0630 08/01/2047 0.91%
PA ECON DEV-A-WASTE 01.7000 08/01/2037 0.91%
TOMBALL ISD-B3-VAR 01.1000 02/15/2043 0.91%
MILAN MI AREA SCHS 05.0000 05/01/2021 0.85%
DENVER ARPT-B-VAR 02.5420 11/15/2031 0.78%
BLACK BELT ENERGY GAS 04.0000 08/01/2047 0.73%
HIGH PLAINS CO MET DI 04.0000 12/01/2021 0.72%
ILLINOIS ST 05.0000 01/01/2021 0.72%
DC-CPI-SER B 03.8000 06/01/2020 0.70%
NJ TURNPIKE AUTH-C5 02.1420 01/01/2028 0.69%
BETHLEHAM SD-FLTR 02.1730 01/01/2030 0.68%
N CALIF GAS-LIBOR 02.1840 07/01/2019 0.59%
PR COMWLTH REF-IMPT-A 05.5000 07/01/2019 0.57%
GREAT LAKES MI WTR AU 05.0000 07/01/2024 0.53%
CA SCH FIN AUTH 05.0000 06/01/2022 0.52%
NJ ECON-SER B 00.0000 02/15/2020 0.52%
ST PUB SCH BLDG-A 05.0000 06/01/2023 0.51%
MTA HUDSON RAIL YRD-A 05.0000 11/15/2046 0.51%
SC PUB SVC AUTH-D 05.0000 12/01/2022 0.50%
LAS VEGAS REDEV-REF 05.0000 06/15/2022 0.50%
PUBLIC FIN AUTH-AMT 05.0000 09/30/2022 0.50%
RI HLTH & EDUCTNL-REF 05.0000 05/15/2022 0.50%
NEW JERSEY ST ECON DE 05.0000 11/01/2021 0.49%
UNIV OF COLORADO CO H 05.0000 11/15/2038 0.49%
CALIFORNIA SCH FIN- A 05.0000 08/01/2021 0.49%
GLENDALE INDL DEV-REF 04.0000 05/15/2022 0.49%
CHICAGO BOE-E-REF 05.0000 12/01/2021 0.48%
ILLINOIS ST-A 05.0000 04/01/2021 0.48%
PENNSYLVANIA-A-COPS 05.0000 07/01/2020 0.47%
OJCO HLTH FACS AUTH-R 05.0000 06/01/2020 0.47%
IL FIN AUTH 05.0000 11/15/2019 0.46%
MICHIGAN ST FIN AUTH 05.0000 11/15/2019 0.46%
PALM BEACH HLTH-REF 04.0000 11/15/2019 0.46%
SOUTHLANDS CO MET DT 03.0000 12/01/2022 0.46%
WASHINGTON ST HLTH CA 02.7110 01/01/2042 0.46%
FARMINGTON NM POLL CO 02.1250 06/01/2040 0.46%
MASSACHUSETTS ST DEV 05.0000 07/01/2019 0.46%
NJ ECON DEV-A 05.0000 07/15/2019 0.46%
NY DORM AUTH 05.0000 07/01/2019 0.46%
RIVERSIDE-A-REF-WTR 02.5300 10/01/2035 0.46%
SA ENERGY ACQ PUB FAC 05.5000 08/01/2025 0.41%
MAIN ST NAT GAS INC-B 05.0000 03/15/2020 0.40%
MD ECON DEV CORP-REF 04.0000 07/01/2020 0.40%
ILLINOIS ST FIN AUTH 05.0000 11/01/2023 0.38%
MA HSG FIN AGY-169 04.0000 12/01/2044 0.38%
GAINESVILLE ETC DEV 05.0000 03/01/2027 0.37%
MN HSG FIN AGY-A-RSDL 04.0000 07/01/2038 0.34%
CHICAGO-A-REF 05.0000 01/01/2021 0.24%
KY ST ECON DEV-A 05.0000 06/01/2020 0.21%
MT BRD HSG-A2-SFH-AMT 03.0000 12/01/2043 0.19%
ROSEVILLE SPL TAX-REF 04.0000 09/01/2019 0.18%
AZ INDL DEV-A-REF P/P 144A 04.0000 07/01/2021 0.16%
ESCAMBIA HLTH FACS-A 05.1250 08/15/2020 0.14%
PHOENIX INDL DEV AUTH 03.0000 07/01/2020 0.11%
PHOENIX INDL DEV AUTH 03.7500 07/01/2024 0.07%

Prior top 10 holdings

Top 10 holdings as of 07/31/19
Miami Spl Oblg-B-Babs 06.9700 04/01/2039
San Antonio Elec-A 02.2500 02/01/2033
Illinois St 05.0000 10/01/2024
Port Auth Ny & Nj-Amt 05.0000 09/01/2021
Main Street Natural-A 05.0000 05/15/2021
Met Wtr-Txb-A-Babs 06.9470 07/01/2040
Il Toll Hwy Auth-A 05.0000 12/01/2019
New York City-C-Txbl 02.5500 12/01/2019
Il Fin Auth-Var-Ref 02.0160 11/01/2034
Sc Transprtn-2003b 01.9440 10/01/2031
Holdings represent 25.37% of portfolio
Top 10 holdings as of 06/30/19
Miami Spl Oblg-B-Babs 06.9700 04/01/2039
San Antonio Elec-A 02.2500 02/01/2033
Illinois St 05.0000 10/01/2024
Port Auth Ny & Nj-Amt 05.0000 09/01/2021
Met Wtr-Txb-A-Babs 06.9470 07/01/2040
Main Street Natural-A 05.0000 05/15/2021
Il Toll Hwy Auth-A 05.0000 12/01/2019
New York City-C-Txbl 02.5500 12/01/2019
Gilroy Unif Sd-Txbl 02.4800 08/01/2019
E-470-A-Sr-Libor 02.0160 09/01/2039
Holdings represent 25.87% of portfolio
Top 10 holdings as of 05/31/19
Miami Spl Oblg-B-Babs 06.9700 04/01/2039
San Antonio Elec-A 02.2500 02/01/2033
Illinois St 05.0000 10/01/2024
Portland Swr-B-Ref 05.0000 06/15/2019
Port Auth Ny & Nj-Amt 05.0000 09/01/2021
Met Wtr-Txb-A-Babs 06.9470 07/01/2040
Main Street Natural-A 05.0000 05/15/2021
Il Toll Hwy Auth-A 05.0000 12/01/2019
New York City-C-Txbl 02.5500 12/01/2019
E-470-A-Sr-Libor 02.0520 09/01/2039
Holdings represent 26.14% of portfolio
Top 10 holdings as of 04/30/19
Miami Spl Oblg-B-Babs 06.9700 04/01/2039
San Antonio Elec-A 02.2500 02/01/2033
Portland Swr-B-Ref 05.0000 06/15/2019
Illinois St 05.0000 10/01/2024
Port Auth Ny & Nj-Amt 05.0000 09/01/2021
Met Wtr-Txb-A-Babs 06.9470 07/01/2040
Main Street Natural-A 05.0000 05/15/2021
Il Toll Hwy Auth-A 05.0000 12/01/2019
New York City-C-Txbl 02.5500 12/01/2019
E-470-A-Sr-Libor 02.0800 09/01/2039
Holdings represent 26.83% of portfolio

Portfolio composition as of 07/31/19

Municipal bonds and notes 92.14%
Cash and net other assets 7.86%

Fixed income statistics as of 07/31/19

Average stated maturity 10.41 yrs.
Average effective maturity 1.70 yrs.
Option adjusted duration 1.35 yrs.
Duration to worst 1.29 yrs.
Average yield to maturity 2.15%
Average coupon 3.60%
Average price $103.59
AMT exposure 8.83%

Quality rating as of 07/31/19

AAA 8.84%
AA 38.30%
A 24.53%
BBB 17.91%
BB 2.26%
CCC and Below 0.12%
Not Rated 0.18%
Cash and net other assets 7.86%

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. 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. Interest the fund receives might be taxable. 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. 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. 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 07/31/19

Utilities 15.72%
Local Debt 14.33%
Transportation 13.78%
State Debt 11.19%
Health care 10.95%
Cash and net other assets 7.86%
Other 7.00%
Financials 4.85%
Industrials 4.04%
 
Other
10.28%
Education 3.73%
Special Tax 2.37%
Housing 2.35%
Land 1.13%
Prerefunded 0.70%

Sectors will vary over time.


Expenses

Expense ratio

Class A Class B Class C Class M Class R6 Class Y
Total expense ratio 1.62% 1.82% 2.37% 1.67% 1.34% 1.37%
What you pay† 0.61% 0.81% 1.36% 0.66% 0.33% 0.36%

† The fund's expense ratio is taken from the most recent prospectus and is subject to change. What you pay reflects Putnam Management's decision to contractually limit expenses through 03/30/20

Sales charge

Investment Breakpoint Class A Class B Class C Class M Class R6 Class Y
$0-$49,999 2.25% 0.00% 0.00% 0.75% -- --
$50,000-$99,999 2.25% 0.00% 0.00% 0.75% -- --
$100,000-$249,999 1.25% -- 0.00% 0.75% -- --
$250,000-$499,999 0.00% -- -- -- -- --
$500,000-$999,999 0.00% -- -- -- -- --
$1M-$4M 0.00% -- -- -- -- --
$4M-$50M 0.00% -- -- -- -- --
$50M+ 0.00% -- -- -- -- --

CDSC

  Class A (sales for $250,000+) Class B Class C Class M Class R6 Class Y
0 to 9 mts. 1.00% 1.00% 1.00% -- -- --
9 to 12 mts. 0.00% 1.00% 1.00% -- -- --
2 yrs. -- 0.50% 0.00% -- -- --
3 yrs. -- -- 0.00% -- -- --
4 yrs. -- -- 0.00% -- -- --
5 yrs. -- -- 0.00% -- -- --
6 yrs. -- -- 0.00% -- -- --
7+ yrs. -- -- 0.00% -- -- --

The Bloomberg Barclays 3 Year Municipal Index is a subset of the Bloomberg Barclays Municipal Bond Index, covering those issues with remaining maturities of two to three years. 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. 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. Interest the fund receives might be taxable. 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. 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. 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.