Active Income

Intermediate-Term Municipal Income Fund (Class Y)  (PIMYX)

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

Intermediate-Term Municipal Income Fund received an  Overall Morningstar Rating  of  

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 returnSeeks 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, intermediate-term portfolioThe national portfolio features a range of high-quality, intermediate-term bonds that seek to provide tax-free income with moderate interest-rate sensitivity.

Fund price and assets

Prior close 52-week high 52-week low Net assets and outstanding shares
Net asset value $9.79
0.10% | $0.01
$10.04
04/13/23
$9.39
10/27/22
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Net assets and outstanding shares

(Optional)

Fund facts as of 04/30/23

Total net assets
$35.30M
Turnover (fiscal year end)
29%
Dividend frequency (view rate)
Monthly
Number of holdings
142
Fiscal year-end
November
CUSIP / Fund code
74676A766 / 1881
Inception date
03/18/13
Category
Tax-free Income
Open to new investors
Ticker
PIMYX

Management team

Portfolio Manager
Portfolio Manager

Finding opportunity in a solid muni market

Portfolio Managers Garrett Hamilton, CFA, and Paul Drury, CFA, discuss the state of the municipal bond market and current opportunities.

Literature


Economic imbalances could mean deep recession or sticky inflation
A deep recession could have a significant impact on financial markets.
Financial stability risk and recession odds rise
A final rate hike and a possible credit squeeze loom over the economy.
Inflation demands Fed's focus as bank lending tightens
Even as bank lending tightens, the Fed may still need to keep rates high for longer to bring down inflation.

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.

3.93%

Best 5-year annualized return

(for period ending 12/31/21)


0.87%

Worst 5-year annualized return

(for period ending 09/30/22)


2.60%

Average 5-year annualized return


  • Total return (%) as of 03/31/23

  • Annual performance as of 03/31/23

Annualized Total return (%) as of 03/31/23

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge 1.24% 0.98% 2.18% 2.01%
After sales charge N/A N/A N/A N/A
Bloomberg 7-year Municipal Index 2.01%0.82%2.19%2.14%

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. The "before sales charge" performance does not reflect the current maximum sales charges, which we explain below. If performance did reflect the charges, it would be lower. The "after sales charge" performance (or returns at public offering price) varies by share class and fund. For class A and class M shares, the current maximum initial sales charges are 5.75% and 3.50% for equity funds and 4.00% and 3.25% for income funds, respectively (with these exceptions: 2.25% for class A of Floating Rate Income Fund, Short-Term Municipal Income Fund, Short Duration Bond Fund, and Strategic Intermediate Municipal Fund). Class B share performance reflects the applicable contingent deferred sales charge (CDSC), which is 5% in the first year, declines to 1% in the sixth year, and is eliminated thereafter (except for Floating Rate Income Fund and Short Duration Bond Fund; for these funds, the CDSC is 1% in the first year, declines to 0.5% in the second year, and is eliminated thereafter). Class C share performance reflects 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 by adjusting for the applicable sales charge (or CDSC) and, except for class Y shares, the higher operating expenses for such shares (note, for two funds - Tax-Free High Yield Fund and Strategic Intermediate Municipal Fund performance prior to inception is based on the historical performance of class B shares). Performance for class A, C, R6, and Y shares of Mortgage Opportunities Fund before their inception is derived from the historical performance of class I shares, which has been adjusted for the applicable sales charge (or CDSC) and the higher operating expenses for such shares. The "after sales charge" performance (at public offering price) for class N shares reflects the current maximum initial sales charge of 1.50%. Class R, R3, R4, R5, and R6 shares, which are 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 R3 and R4 shares prior to their inception is derived from the historical performance of class Y shares by adjusting for the higher operating expenses for such shares. Performance for class R5 shares before their inception is derived from the historical performance of class Y shares, which has not been adjusted for the lower expenses; had it been adjusted, performance would be higher (with the exception of the Sustainable Retirement Maturity, 2025, 2030, 2035, and 2040 Funds, for which performance is derived from the historical performance of class R6 shares and has been adjusted for the higher operating expenses for such shares; and the Sustainable Retirement 2045, 2050, 2055, and 2060 Funds, for which performance is derived from the historical performance of class R6 shares and has not been adjusted for the lower expenses; had it been adjusted, performance would be higher). Performance for class R6 shares before their inception is derived from the historical performance of class Y shares, which has not been adjusted for the lower operating expenses; had it been adjusted, performance would be higher. For a portion of the period, some funds had expenses limitations or had been sold on a limited basis with limited assets and expenses. Had these limits not been in place, performance would be lower.

Performance snapshot

  Before sales charge After sales charge
1 mt. as of 05/31/23 -0.99% -
YTD as of 05/31/23 or prior close 1.37% -

Yield

Distribution rate before sales charge
as of 05/31/23
2.58%
Distribution rate after sales charge
as of 05/31/23
2.58%
30-day SEC yield with subsidy
as of 04/30/23
2.65%
30-day SEC yield without subsidy
as of 04/30/23
2.27%

Risk-adjusted performance as of 04/30/23

Sharpe ratio (3 yrs.) 0.09
Information ratio (3 yrs.) 0.81

Volatility as of 04/30/23

Standard deviation (3 yrs.) 5.42%
Beta 1.00
R-squared 0.98

Fixed income statistics as of 04/30/23

Duration to worst 4.50 yrs.

Lipper rankings as of 04/30/23

Time period Rank/Funds in category Percentile ranking
1 yr. 19/221 9%
3 yrs. 29/197 15%
5 yrs. 15/166 9%
10 yrs. 30/134 23%
Lipper category: Intermediate Municipal Debt Funds

Morningstar Ratings as of 04/30/23

Time period Funds in category Morningstar Rating
Overall 270
3 yrs. 270
5 yrs. 234
10 yrs. 183
Morningstar category: Muni National Interm

Distributions

Accrual days 31
Accrual start date 05/01/23
Accrual end date 05/31/23
Payable date 05/31/23
Non-taxable income $0.021875143
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.

Morningstar Ratings for the specific share classes only; other classes may have different performance characteristics.

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 3-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 Morningstar Rating does not include any adjustment for sales loads. 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 3-, 5-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% 3-year rating for 36–59 months of total returns, 60% 5-year rating/40% 3-year rating for 60–119 months of total returns, and 50% 10-year rating/30% 5-year rating/20% 3-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 3-year period actually has the greatest impact because it is included in all three rating periods.

Some of Morningstar's proprietary calculations, including the Morningstar Rating™, are not customarily calculated based on adjusted historical returns. However, for new share classes/channels, Morningstar may calculate an extended performance Morningstar Rating that is based, in part, on adjusted historical (or "pre-inception") returns for periods prior to the inception of the share class of the fund shown herein ("Report Share Class").

The extended performance is calculated by creating a performance stream consisting of the Report Share Class and older share class(s). Morningstar adjusts the historical total returns of the older share class(es) of a fund to reflect higher expenses in the Report Share Class. Morningstar does not hypothetically adjust returns upwards for lower expenses.

The extended performance Morningstar Risk-Adjusted Return is then calculated for 3-, 5-, and 10-year time periods and used to determine the extended performance Morningstar Rating. The extended performance Morningstar Rating for this fund does not affect the retail fund data published by Morningstar, as the bell curve distribution on which the ratings are based includes only funds with actual returns. The Overall Morningstar Rating for multi-share open-end funds will be either based on actual performance only or extended performance only. Once the share class turns three years old, the Overall Morningstar Rating will be based on actual ratings only. The Overall Morningstar Rating for multi-share variable annuities is based on a weighted average of any ratings that are available.

While the inclusion of pre-inception data, in the form of extended performance, can provide valuable insight into the probable long-term behavior of newer share classes of a fund, investors should be aware that an adjusted historical return can only provide an approximation of that behavior. For example, the fee structures of a retail share class will vary from that of an institutional share class, as retail shares tend to have higher operating expenses and sales charges. These adjusted historical returns are not actual returns. The underlying investments in the share classes used to calculate the pre-performance string will likely vary from the underlying investments held in the fund after inception. Calculation methodologies utilized by Morningstar may differ from those applied by other entities, including the fund itself.

© 2023 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

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.


Tax-Equivalent Yield Calculator

When considering investing in municipal bonds, you should evaluate yields on a tax-equivalent basis, taking into account your tax liability on the interest earned from each.

  • Federally tax-exempt bonds typically yield less income than taxable bonds.
  • State and local income tax-exempt bonds may yield less than those whose interest is taxed in a particular jurisdiction.

What is your tax rate?

Incomes higher than $250,000 have NII taxes included

Federal Rate

0.00%

+

State Income

0.00%

=

Total Tax Rate

0.00%

Choose a fund

Submit
You've selected an in-state municipal fund
which currently yields 2.47%.

There are other types of bond funds to consider...

To get the equivalent yield as the in-state municipal
fund, each fund would have to yield:
Yield
In-state
muni
2.47%
Out-of-state muni
2.47%
U.S. Treasuries
2.47%
Other taxable funds
2.47%
Taxes
0%
Tax
5.05%
MA income tax
2.47%
Federal income tax
2.47%
MA + Federal income tax
...because a portion of the yield would go toward taxes!

Yield

Taxes

Equivalent

Putnam Massachusetts Tax Exempt Income Fund

— or —

  See how this fund stacks up against its peers with FundVisualizer®


 Disclosures


Putnam

The output of this calculator is for educational purposes only and should not be considered investment, legal or tax advice as is not intended to serve as the primary or sole basis for investment or tax-planning decisions. It is intended for U.S. individual taxpayers residing in the 50 states and the District of Columbia, and is not applicable to trusts, estates, corporations or persons subject to special rules under federal, state or local income tax laws. The taxes calculated on investment income does not apply to funds and accounts held outside qualified retirement plans and other tax-deferred or tax-exempt investments.

Laws of a particular state, or laws which may be applicable to a particular situation, may have an impact on the applicability, accuracy, or completeness of information provided. Putnam does not guarantee that the content is accurate, complete, or timely, or that the calculator produces accurate or complete results.

For more individualized information, consult your tax advisor or investment professional. You bear sole responsibility for any decisions made based on the output of this calculator. The calculator makes certain assumptions that may not apply to you. The calculator has many inherent limitations, and individual results may vary.

Calculator assumptions

The calculator displays the federal and state tax rates assumed in calculating tax equivalent yields based on a chosen income level and filing status. Indicated rates are those that apply to an incremental dollar of additional income, which may vary from your average tax rates. The 3.8% net investment income (NII) federal tax applies to individuals, estates and trusts with modified adjusted gross income (MAGI) above applicable threshold amounts ($200,000 for single and head of household; $250,000 for married filing jointly). While reasonable efforts are made to make timely updates to tax rates and income tax brackets used by this calculator, there may be a delay in when the tool reflects those changes.

The calculator does not take into account:

  • Reductions and limits on federal itemized deductions
  • State and local taxes are not deducted from your federal tax rate. Depending on your personal scenario, this may cause the resulting yield to be overstated
  • Federal alternative minimum tax (AMT)
  • State alternative minimum tax
  • Intangibles taxes levied by individual states
  • Local income tax rates imposed by cities, counties or other local jurisdictions on investment income and gains

You should review the assumed tax rates against your actual tax rates based on your individual tax situation when analyzing and interpreting this calculator's results.


Holdings

Nyc Transitional Fin 05.0000 11/01/2040 2.34%
Nederland Isd 05.0000 08/15/2031 2.21%
Nyc Hsg Dev Corp-F-2b 03.4000 11/01/2062 2.15%
Great Lakes Mi Wtr Au 05.0000 07/01/2028 2.04%
Ca Co Ca Tobacco-A 05.0000 06/01/2028 2.01%
Port Auth Ny/Nj-197 05.0000 11/15/2035 2.01%
Texas St-Studnt Ln 03.0000 08/01/2034 1.82%
Chicago Wstwtr Trans 05.0000 01/01/2028 1.76%
California St Infrast 05.0000 12/01/2027 1.72%
Sarasota Co Pub Hosp 05.0000 07/01/2038 1.70%
Top 10 holdings, percent of portfolio 19.77%



Portfolio composition as of 04/30/23

Municipal bonds and notes 92.73%
Cash and net other assets 7.27%

Fixed income statistics as of 04/30/23

Average stated maturity 11.15 yrs.
Average effective maturity 5.44 yrs.
Option adjusted duration 5.13 yrs.
Duration to worst 4.50 yrs.
Average yield to maturity 3.56%
Average coupon 4.25%
AMT exposure 18.36%

Quality rating as of 04/30/23

AAA 18.43%
AA 30.81%
A 33.96%
BBB 7.53%
BB 0.34%
Not Rated 1.66%
Cash and net other assets 7.27%

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 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 may be taxable. 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.

Our investment techniques, analyses, and judgments may not produce the outcome we intend. The investments we select for the fund may not perform as well as other securities that we do not select for the fund. We, or the fund’s other service providers, may experience disruptions or operating errors that could have a negative effect on the fund. 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.

Sector weightings as of 04/30/23

Transportation 20.03%
Local Debt 14.14%
Utilities 12.93%
Health care 10.63%
State Debt 10.41%
Cash and net other assets 7.27%
Education 7.15%
Special Tax 5.83%
Tobacco 3.17%
 
Other
8.43%
Financials 2.28%
Other 2.24%
Housing 2.15%
Land 1.06%
Industrials 0.43%
Prerefunded 0.28%

Sectors will vary over time.


Expenses

Expense ratio

Class A Class B Class C Class R6 Class Y
Total expense ratio 1.48% 2.08% 2.23% 1.15% 1.23%
What you pay† 0.90% 1.50% 1.65% 0.57% 0.65%

† 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 03/30/24

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 3.25% 0.00% 0.00% -- --
$100,000-$249,999 2.50% -- 0.00% -- --
$250,000-$499,999 0.00% -- 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 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 7-year Municipal Index is a subset of the Bloomberg Municipal Bond Index that measures the performance of investment-grade issues with remaining maturities of six to eight 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 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 may be taxable. 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.

Our investment techniques, analyses, and judgments may not produce the outcome we intend. The investments we select for the fund may not perform as well as other securities that we do not select for the fund. We, or the fund’s other service providers, may experience disruptions or operating errors that could have a negative effect on the fund. 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.