Tax Exempt Income Fund  (PTAEX)

Seeking a high level of tax-free income since 1976

Objective

The fund seeks as high a level of current income exempt from federal income tax as we believe to be consistent with preservation of capital.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $8.69
0.23% | $0.02
$8.77
10/24/16
$8.40
12/01/16
Historical fund price

Fund facts as of 09/30/17

Total net assets
$1,013.60M
Turnover (fiscal year end)
21%
Dividend frequency (view rate)
Monthly
Number of holdings
541
Fiscal year end
September
CUSIP / Fund code
746870104 / 0009
Inception Date
12/31/76
Category
Tax-free Income
Open to new investors
Ticker
PTAEX

Management team


Portfolio Manager

Portfolio Manager

Strategy and process

  • Tax-advantaged income: The fund pursues income free from federal income tax with a portfolio of municipal bonds selected from many states and market sectors.
  • Focus on performance: The portfolio managers seek a competitive yield and to protect investor's capital through careful investment analysis and risk management.
  • 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.

Literature


Why a meaningful near-term market correction is unlikely
2017 is a rare year without a stock market correction of at least 5%, but that doesn't make a correction more likely in the fourth quarter.
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The Japan election could have consequences for the future leadership of the Bank of Japan and the country's impact on global interest rate trends.
Using and enhancing ESG investment data
ESG data is having investment impact but is still evolving, and stands to benefit from feedback offered by fundamental analysts.

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.

22.07%

Best 5-year annualized return

(for period ending 12/31/86)


-1.95%

Worst 5-year annualized return

(for period ending 12/31/81)


7.13%

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 0.88% 3.05% 2.78% 4.21%
After sales charge -3.16% 1.65% 1.95% 3.79%
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 09/30/17 -0.30 % -4.29 %
YTD as of 10/17/17 5.47 % 1.25 %

Yield

Distribution rate before sales charge
as of 10/17/17
3.08%
Distribution rate after sales charge
as of 10/17/17
2.96%
30-day SEC yield as of 09/29/17
(after sales charge)
1.74%

Risk-adjusted performance as of 09/30/17

Sharpe ratio (3 yrs.) 0.97
Information ratio (3 yrs.) -0.21

Volatility as of 09/30/17

Standard deviation (3 yrs.) 2.86%
Beta 0.87
R-squared 0.97

Lipper rankings as of 09/30/17

General & Insured Municipal Debt Funds Percentile ranking Rank/Funds in category
1 yr. 25% 63/257
3 yrs. 51% 115/225
5 yrs. 54% 110/204
10 yrs. 43% 66/155

Morningstar ratings as of 09/30/17

Muni National Long Rating Funds in category
Overall (139)
3 yrs. (139)
5 yrs. (130)
10 yrs. (105)

Distributions

Accrual days 29
Accrual start date 09/01/17
Accrual end date 09/29/17
Payable date 09/29/17
Non-taxable income $0.023726908
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 09/30/17

Ny Dorm Univ Edl -A 05.5000 05/15/2019 1.57%
Henrico Indl-Reg Link 05.9290 08/23/2027 1.34%
N Tx Twy Cab-Ref-I 06.5000 01/01/2043 1.22%
Ny Dorm City Univ 2nd 06.0000 07/01/2020 1.20%
Ca St-Var Purp 05.5000 03/01/2040 1.12%
Reno S/Tax-Var-Rf-Ret 01.0100 06/01/2042 0.95%
Port Auth Ny & Nj-205 05.0000 11/15/2047 0.89%
Great Lakes Wtr-C-Ref 05.0000 07/01/2036 0.86%
N Tx Hwy Cabs-Ref-1st 00.0000 01/01/2028 0.84%
Dist Of Columbia-D 05.0000 06/01/2041 0.84%
Top 10 holdings, percent of portfolio 10.83%

Full portfolio holdings as of 06/30/17

NY DORM UNIV EDL -A 05.5000 05/15/2019 1.74%
HENRICO INDL-REG LINK 05.9290 08/23/2027 1.61%
N TX TWY CAB-REF-I 06.5000 01/01/2043 1.37%
NY DORM CITY UNIV 2ND 06.0000 07/01/2020 1.36%
CA ST-VAR PURP 05.5000 03/01/2040 1.27%
RENO S/TAX-VAR-RF-RET 00.8800 06/01/2042 1.06%
N TX HWY CABS-REF-1ST 00.0000 01/01/2028 0.94%
GREAT LAKES WTR-C-REF 05.0000 07/01/2036 0.89%
DELAWARE RVR PORT 05.0000 01/01/2030 0.88%
ID HSG & FIN 04.0000 07/15/2030 0.83%
MA TRANS-SR-B 05.0000 01/01/2037 0.81%
NC ESTN PWR-REF-CTFS 06.0000 01/01/2018 0.81%
CA ST UNIV-A 05.0000 11/01/2041 0.77%
E-470 PUB HWY-CAB-A 00.0000 09/01/2034 0.77%
HARRIS CULT ED VAR-C1 00.7800 12/01/2024 0.77%
IN BD BK SER A 05.2500 10/15/2021 0.77%
MASSACHUSETTS ST-J 05.0000 12/01/2037 0.75%
SANTEE COOPER-SER A 05.7500 12/01/2043 0.75%
WA HSP-C-MTN STS HLTH 07.7500 07/01/2038 0.75%
NJ TRN FD CAB-SER C 00.0000 12/15/2024 0.74%
SACRAMENTO FING-CAB-A 00.0000 12/01/2022 0.72%
DALLAS AREA RAPID-A 05.0000 12/01/2046 0.70%
MA DEV FIN AGY 05.2500 10/01/2041 0.69%
CHICAGO 2002B 05.5000 01/01/2037 0.67%
MS BUS-VAR-E-CHEVRON 00.7700 12/01/2030 0.67%
WASHINGTON ST 05.0000 08/01/2035 0.66%
DC WTR & SWR AUTH-B 05.0000 10/01/2035 0.65%
LOS ANGELES DEP OF WT 05.0000 07/01/2036 0.65%
MI FIN AUTH-H-1-REF 05.0000 10/01/2039 0.65%
NEW JERSEY ST ECON DE 05.0000 11/01/2026 0.65%
NYC TRANSTNL FIN-E1 05.0000 02/01/2035 0.65%
PA TNPK CMMN-A 05.0000 12/01/2044 0.65%
NYC MUNI WTR FIN-CC 05.0000 06/15/2046 0.64%
NYC TRANS FIN AUTH-S1 05.0000 07/15/2040 0.64%
TEXAS ST-HWY IMPT 05.0000 04/01/2044 0.64%
DALLAS-FT WORTH ARPT 05.2500 11/01/2030 0.63%
ATLANTA WTR-REF 05.0000 11/01/2040 0.62%
E STROUDSBRG SD-UNREF 05.0000 09/01/2027 0.62%
PALM BEACH HLTH-REF 05.0000 11/15/2032 0.62%
MIAMI-DADE CNTY AVTN 05.0000 10/01/2041 0.61%
MTA HUDSON RAIL YRD-A 05.0000 11/15/2046 0.59%
WASHINGTON ST-A-COPS 05.0000 07/01/2034 0.59%
LORAIN HSP REF-C2-CAT 05.0000 04/01/2024 0.57%
MA SCH BLDG AUTH-C 05.0000 08/15/2037 0.57%
MASSACHUSETTS ST 04.0000 04/01/2046 0.57%
MET TRANS AUTH-A2A 01.3100 11/01/2026 0.57%
UNION UTILS-A-REF 05.2500 12/01/2031 0.57%
HOUSTON UTIL-A-RF-1ST 05.0000 11/15/2033 0.55%
NH HLTH &EDU FACS-REF 05.0000 10/01/2037 0.55%
FARMINGTON PCR-B 04.7000 09/01/2024 0.54%
N TOLLWAY-PREREF-A 06.0000 01/01/2025 0.53%
TEXAS CITY ARCO PIPE 07.3750 10/01/2020 0.53%
AMERICAN MUNI PWR-A 05.0000 02/15/2041 0.52%
CA UNIV REVENUE-A-REF 05.0000 11/01/2038 0.51%
GAINESVILLE HOSP-A 05.0000 02/15/2036 0.51%
TN ENERGY 05.2500 09/01/2020 0.50%
BREVARD HEALTH FIRST 07.0000 04/01/2039 0.49%
MET WA ARPTS-CABS-A 00.0000 10/01/2037 0.49%
NYC TRANSTNL FIN-E1 05.0000 02/01/2038 0.48%
LOUISVILLE & JEFFERSO 05.0000 10/01/2030 0.47%
CA ST PUBLIC WKS-A 05.0000 04/01/2029 0.46%
DASNY INCOME TAX-E 05.0000 02/15/2044 0.45%
NJ ECON DEV-MSU HSG 05.8750 06/01/2042 0.45%
NYC TRANSTNL FIN-E1 05.0000 02/01/2039 0.45%
CHICAGO ARPT-F 05.0000 01/01/2040 0.44%
GA MUNI ELEC AUTH-A 05.5000 07/01/2060 0.44%
GTR ORLANDO FL AVIATI 05.0000 10/01/2046 0.44%
VICTORIA UTL SYS-REF 05.0000 12/01/2027 0.44%
BUCKEYE TOB ASSET-A-2 05.7500 06/01/2034 0.43%
HOUSTON ARPT-A-REF 05.0000 07/01/2025 0.43%
SELMA INDL-A-GULF OPP 06.2500 11/01/2033 0.43%
GLENDALE INDL-MIDWEST 05.1250 05/15/2040 0.42%
NJ ECON DEV-AA-UNREF 05.2500 12/15/2033 0.41%
DC WTR & SWR AUTH-B 05.0000 10/01/2037 0.40%
MARICOPA PCR--A 07.2500 02/01/2040 0.40%
SUNRISE UTIL-UNREF 05.2000 10/01/2022 0.40%
BRAZOS HBR-DOW CHEM 05.9000 05/01/2038 0.39%
KAREGNONDI WTR AUTH-A 05.2500 11/01/2030 0.38%
MET TRANS-D-REF 05.0000 11/15/2029 0.38%
MIAMI-DADE-SALES TAX 05.0000 07/01/2042 0.38%
MONTGOMERY INDL-A-AQU 05.2500 07/01/2042 0.38%
GLENDALE INDL DEV-REF 05.0000 05/15/2039 0.37%
MASS DEV FIN AGY-C 05.2500 10/01/2029 0.37%
PITTSBURGH SPORTS-REF 05.0000 02/01/2035 0.37%
TOB SETTLEMT FING-B 05.0000 06/01/2050 0.37%
WI H/E PROHEALTH CARE 06.6250 02/15/2039 0.37%
CA HLTH FACS-A-REF 05.0000 08/15/2042 0.36%
CAMPBELL CNTY 05.7500 07/15/2039 0.36%
CHICAGO WSTWTR 05.0000 01/01/2044 0.36%
CHICAGO WTRWKS-PREREF 05.0000 11/01/2025 0.36%
MA ST DEV FIN AGY-N 05.0000 12/01/2046 0.36%
NJ HLTH ST JOSEPHS 06.6250 07/01/2038 0.36%
NJ TRANSN TR FD-A 06.0000 06/15/2035 0.36%
NY ENERGY VAR-A1-BROO 01.5930 12/01/2020 0.36%
RVRSIDE LSE CORP-HOSP 00.0000 06/01/2025 0.36%
ATLANTA WTR-REF 05.0000 11/01/2043 0.35%
DIST COLUM REV-UNREF 06.5000 10/01/2041 0.35%
MSR ENERGY 06.5000 11/01/2039 0.35%
NJ TPK SER E 05.2500 01/01/2040 0.35%
KS DEV-LIFESPACE-S 05.0000 05/15/2030 0.34%
MD HLTH&HGR EDU AUTH 05.0000 07/01/2039 0.34%
OREGON ST-F 05.0000 05/01/2039 0.34%
CHICAGO BOE CAB-SCH-A 00.0000 12/01/2018 0.33%
CHICAGO IL 06.0000 01/01/2038 0.33%
ILLINOIS ST 05.0000 11/01/2036 0.33%
MO H/E VAR-WA UNIV-D 00.7600 09/01/2030 0.33%
CHICAGO WSTWTR 05.0000 01/01/2039 0.32%
MA HLTH-NORTHESTN-A 05.0000 10/01/2035 0.32%
NJ ST HLTH-REF-A 05.0000 07/01/2035 0.32%
NY DORM CITY UNIV 2ND 05.7500 07/01/2018 0.32%
PITTSBURGH-B 05.0000 09/01/2025 0.32%
WY MUN PWR AGY-A 05.5000 01/01/2038 0.32%
ALLEGHENY HSP-B-UPMC 06.0000 07/01/2024 0.31%
CHICAGO BOE-C-PROJ 05.2500 12/01/2039 0.31%
MET TRANS AUTH-D 05.0000 11/15/2036 0.31%
PRVT CLGS & UNIV-A 05.0000 10/01/2043 0.31%
IL FIN-RUSH UNIV-B 07.2500 11/01/2038 0.30%
IN FIN AUTH-A-2-UNREF 00.8000 02/01/2037 0.30%
MI HOSP-A-MIDMICHIGAN 06.1250 06/01/2039 0.30%
SC PUB SVC AUTH-A-REF 05.0000 12/01/2050 0.30%
TX MUN GAS ACQ & SUPP 05.0000 12/15/2029 0.30%
HOUSTON UTL SYS-D-REF 05.0000 11/15/2039 0.29%
MASS ED FIN AUTH -B 05.7000 01/01/2031 0.29%
FULTON DEV AUTH-A-REF 05.0000 10/01/2042 0.28%
NC MED CR-A-DEERFIELD 06.0000 11/01/2033 0.28%
NE PUB PWR DIST-C 05.0000 01/01/2034 0.28%
PA TNPK CMMN-A 05.0000 12/01/2038 0.28%
GLENDALE AZ EXCISE TA 05.0000 07/01/2031 0.27%
HALIFAX HOSP MED-REF 05.0000 06/01/2036 0.27%
ILLINOIS ST-REF 05.0000 02/01/2028 0.27%
LAKELAND HOSP 05.0000 11/15/2040 0.27%
MARIETTA DEV-REF-UNIV 07.0000 06/15/2039 0.27%
MATAGORDA NAV 1-RF-A 04.4000 05/01/2030 0.27%
RAILSPLITTER 06.0000 06/01/2028 0.27%
ROCHESTER HLTH-B-MAYO 00.8400 11/15/2038 0.27%
WASHINGTON ST HLTH CA 01.9200 01/01/2042 0.27%
IL ST-REF 05.0000 08/01/2021 0.26%
MASSACHUSETTS ST-G 04.0000 09/01/2042 0.26%
NJ HGR ED-SER A 05.6250 06/01/2030 0.26%
DENVER-A-AMT-SUB-ARPT 05.5000 11/15/2031 0.25%
DIST OF COLUMBIA UNIV 05.5000 04/01/2041 0.25%
DIST OF COLUMBIA-C 05.0000 06/01/2038 0.25%
LOS ANGELES ARPTS-A 05.0000 05/15/2030 0.25%
MA DEV FIN AGY-E-OLIN 05.0000 11/01/2043 0.25%
NYC MUNI WTR & SWR-DD 05.0000 06/15/2035 0.25%
OAKLAND UNIV-REF 05.0000 03/01/2039 0.25%
SANTA FE RETMNT FAC 05.0000 05/15/2032 0.25%
SC PUB SVC AUTH-A 05.5000 12/01/2054 0.25%
YOUNGSTOWN UNIV-RCPTS 05.0000 12/15/2025 0.25%
ATLANTA ARPT-GEN-A 05.0000 01/01/2035 0.24%
CO HLTH FACS AUTH-REF 05.0000 06/01/2045 0.24%
DALLAS ETC ARPRT-A 05.0000 11/01/2043 0.24%
GAINESVILLE HOSP-A 05.5000 08/15/2054 0.24%
MA DEV-SUFFOLK UNIV 05.1250 07/01/2040 0.24%
MO DEV FIN BRD-A 05.0000 06/01/2037 0.24%
NJ ECON-B-RF-NJ AMERN 05.6000 11/01/2034 0.24%
SALT VERDE FNL CORP 05.5000 12/01/2029 0.24%
DELAWARE ECON DEV AUT 05.3750 10/01/2045 0.23%
FRANKLIN CNTY-A 06.0000 07/01/2035 0.23%
KENTWOOD MI ECON DEV 05.0000 11/15/2037 0.23%
MINNEAPOLIS REV-NMDP 04.8750 08/01/2025 0.23%
MUNIMAE TE BOND SUBS P/P 144A 05.7500 06/30/2050 0.23%
OH TPK COMMN-A1-JR 05.2500 02/15/2033 0.23%
BURKE CNTY DEV AUTH 01.8500 12/01/2049 0.22%
CENTRL FL EXPWY AUTH 05.0000 07/01/2034 0.22%
MIAMI-DADE AVIATION-A 05.0000 10/01/2038 0.22%
MICHIGAN FIN AUTH 05.0000 11/01/2044 0.22%
ORANGE CO HLTH FACS 05.0000 08/01/2034 0.22%
CHICAGO O'HARE-A 05.7500 01/01/2039 0.21%
CULLMAN COUNTY 07.0000 02/01/2036 0.21%
DE ECON-REF-GAS FACS 05.4000 02/01/2031 0.21%
LA VERNIA HGR ED-A-KI 06.3750 08/15/2044 0.21%
LAKELAND HOSP 05.0000 11/15/2045 0.21%
MS BUS SYS ENERGY RES 05.8750 04/01/2022 0.21%
OHIO-AMT-PORTSMOUTH 05.0000 12/31/2035 0.21%
ARLINGTON HGR EDU-A 05.0000 12/01/2033 0.20%
CA POLL FING AUTH 04.7500 11/01/2046 0.20%
CHICAGO WTRWKS-UNREF 05.0000 11/01/2025 0.20%
GOLDEN ST TOBACCO-A-1 05.0000 06/01/2028 0.20%
GREATER CHICAGO MET-E 05.0000 12/01/2029 0.20%
TX PRIVATE ACTIVITY 06.8750 12/31/2039 0.20%
WASHINGTON ST A-1 05.0000 08/01/2037 0.20%
CALIFORNIA STWD CMNTY 05.0000 11/15/2044 0.19%
HIGH PLAINS CO MET DI 04.0000 12/01/2047 0.19%
MS BUS-VAR-A-CHEVRON 00.7600 12/01/2030 0.19%
STOCKTON FING-A-REMK 06.2500 10/01/2040 0.19%
WASHINGTON HLTH CAR-B 05.0000 02/15/2027 0.19%
CA FIN BIOLA UNIV 05.8750 10/01/2034 0.18%
CA POLL CNTRL-AMT 05.0000 11/21/2045 0.18%
CHESTERFIELD PCR-RF-A 05.0000 05/01/2023 0.18%
CT HLTH & EDU-F-REF 05.0000 07/01/2034 0.18%
KY PUB TRANSPTRN-A 06.0000 07/01/2053 0.18%
MIDDLEBURG HGHTS HOSP 05.0000 08/01/2047 0.18%
MUNIMAE TE BOND SUBS P/P 144A 05.0000 04/30/2028 0.18%
PA ST HGR EDU FACS 05.0000 11/01/2042 0.18%
WA HLTH CARE FACS 04.0000 07/01/2036 0.18%
CLARK CO ARPT-A-2 05.0000 07/01/2033 0.17%
CUMBERLAND AUTH-A-PRE 05.2500 01/01/2019 0.17%
NJ ECON DEV-PREREF 05.2500 12/15/2033 0.17%
ABAG FIN AUTH-A-REF 05.0000 07/01/2042 0.16%
AMERICAN MUNI PWR-A 05.0000 02/15/2029 0.16%
BAYONNE-REF-IMPT 05.0000 07/01/2039 0.16%
FLINT HSP-HURLEY MED 07.3750 07/01/2035 0.16%
HARRIS CULTURAL EDU-A 05.0000 06/01/2028 0.16%
MA DEV FIN-A-UNREF 05.7500 07/01/2039 0.16%
PA ST TRNPK-B 05.0000 12/01/2027 0.16%
SAN ANTONIO ARPT-IMPT 05.2500 07/01/2032 0.16%
SOUTHEASTERN OH PORT 05.7500 12/01/2032 0.16%
TARRANT EDU FAC-UNREF 05.2500 11/15/2022 0.16%
WA ST HLTH CR FACS 07.0000 07/01/2039 0.16%
WY MUN PWR AGY-A 05.5000 01/01/2033 0.16%
ERIE HGR ED-MERCYHURS 05.5000 03/15/2038 0.15%
HOUSTON HGR ED-A 05.0000 02/15/2032 0.15%
HUDSON YDS INFR-UNREF 05.7500 02/15/2047 0.15%
MD HLTH & HGR EDU FAC 05.0000 07/01/2040 0.15%
N TX TOLL AUTH-PREREF 05.6250 01/01/2033 0.15%
NC ESTRN PWR SER D 06.7500 01/01/2024 0.15%
PA TPK COMM-A-1 05.0000 12/01/2046 0.15%
PORT OAKLAND-P-AMT 05.0000 05/01/2033 0.15%
ST PAUL PORT AUTH P/P 144A 04.5000 10/01/2037 0.15%
TOBACCO FING-A-REF 05.0000 05/15/2023 0.15%
HUBER HEIGHTS SD-REF 05.0000 12/01/2031 0.14%
ILLINOIS ST 05.0000 11/01/2041 0.14%
ILLINOIS ST-REF 05.0000 02/01/2029 0.14%
MA PORT AUTH-REF-A 05.0000 07/01/2033 0.14%
MISSION ECON-VAR-A 01.0500 01/01/2020 0.14%
PA ST HSG FIN AGY-REF 03.9500 10/01/2030 0.14%
VA ST BUSINESS FING 05.0000 07/01/2034 0.14%
BRAZOS NAV AMT-A4-DOW 05.9500 05/15/2033 0.13%
CHICAGO-A-REF 05.2500 01/01/2033 0.13%
DIST OF COLUMBIA UNIV 05.5000 04/01/2034 0.13%
GAINESVILLE HOSP-A 05.0000 02/15/2037 0.13%
GEISINGER AUTH-A-2 05.0000 02/15/2039 0.13%
IL RUSH UNIV MD CTR-C 06.6250 11/01/2039 0.13%
JEFFERSON CO SWR-D 06.5000 10/01/2053 0.13%
LA DEPT OF APRTS-B 05.0000 05/15/2041 0.13%
LA PUB FACS AUTH-REF 05.0000 05/15/2047 0.13%
LOUISVILLE ARPT-A-AMT 05.0000 07/01/2030 0.13%
MA HSG FIN-A 05.1000 12/01/2030 0.13%
MD PCR-REF-3/17/09 06.2000 09/01/2022 0.13%
MI FIN AUTH-C-3-REF 05.0000 04/01/2026 0.13%
MI ST FIN AUTH 05.0000 11/15/2042 0.13%
MIAMI-DADE EXPRESSWY 05.0000 07/01/2044 0.13%
MYRTLE BEACH SC TAX I 05.0000 10/01/2029 0.13%
NEW HOPE EDU FACS-A 05.0000 04/01/2029 0.13%
NJ ECON-AMT-RF-D-NJ A 04.8750 11/01/2029 0.13%
OAKLAND USD-A 05.0000 08/01/2040 0.13%
PA UNIV-SER B 05.0000 09/01/2034 0.13%
PA UNIV-SER B 05.0000 09/01/2035 0.13%
PHILADELPHIA GAS WKS 05.0000 08/01/2031 0.13%
PHILADELPHIA GAS WKS 05.0000 08/01/2032 0.13%
WI HLTH & EDUCTNL-REF 05.0000 08/15/2028 0.13%
CHICAGO MTR FUEL TAX 05.0000 01/01/2033 0.12%
COLORADO ST HLTH FACS 05.0000 05/15/2045 0.12%
COLORADO ST HLTH FACS 05.0000 12/01/2035 0.12%
CUMBERLAND CNTY PA MU 05.0000 01/01/2033 0.12%
DC BALLPARK-SER B1 05.0000 02/01/2025 0.12%
DETROIT WTR & SWR-A 05.0000 07/01/2032 0.12%
DIST OF COLUMBIA 06.0000 07/01/2033 0.12%
DOUGLAS HLTH-UNREF 06.2500 07/01/2038 0.12%
FRANKLIN CNTY-A 06.1250 07/01/2040 0.12%
GAINESVILLE ETC DEV 05.0000 03/01/2047 0.12%
HAMILTON CO HLTH 05.0000 01/01/2032 0.12%
IL FIN-ELMHURST MEM-A 05.6250 01/01/2037 0.12%
IN FIN AUTH-B-REF 05.0000 02/01/2027 0.12%
MA DEV SABIS INTL-A 08.0000 04/15/2039 0.12%
MARTIN CO DEV-REF 04.2000 12/15/2025 0.12%
MINNESOTA ST HGR EDU 04.0000 03/01/2035 0.12%
NEW YORK TRANSPRTN-A 05.0000 07/01/2041 0.12%
NEW YORK TRANSPRTN-A 05.0000 07/01/2046 0.12%
OWEN WTRWKS SER A-KY 06.2500 06/01/2039 0.12%
PHOENIX INDL DEV AUTH 05.0000 07/01/2044 0.12%
PORT OF SEATTLE-C-AMT 05.0000 04/01/2040 0.12%
PUBLIC FIN AUTH-REF 05.2500 07/01/2028 0.12%
RI HLTH & EDUCTNL-REF 05.0000 05/15/2033 0.12%
ST PUB SCH BULD AUTH 05.0000 04/01/2023 0.12%
ST PUB SCH BULD AUTH 05.0000 04/01/2024 0.12%
TARRANT CO CULT EDU 05.0000 10/01/2044 0.12%
TARRANT EDU FAC-PRERF 05.2500 11/15/2022 0.12%
TEXAS ST-REF 04.0000 10/01/2032 0.12%
WV ECON DEV SLDWST 05.3750 12/01/2038 0.12%
E-470 HWY-B-LIBOR 01.8700 09/01/2039 0.11%
ILLINOIS ST 05.0000 11/01/2034 0.11%
LWR COLORADO RIVER 05.0000 05/15/2032 0.11%
PORT NY/NJ 5TH-KIAC-4 06.7500 10/01/2019 0.11%
SALT LAKE LKD PARS & 06.7500 05/15/2020 0.11%
DOUBLE BRANCH CDD-A1 04.2500 05/01/2034 0.10%
LOUISVILLE CLG-REF-A 06.0000 05/01/2038 0.10%
NC MUNI PWR 1-PREREF 05.0000 01/01/2030 0.10%
SC PUB SVC AUTH-A-REF 05.0000 12/01/2025 0.10%
CA EDL FACS AUTH-A 05.0000 11/01/2030 0.09%
CHICAGO BOE CAB-B-1 00.0000 12/01/2021 0.09%
CLARK IMPT DIST-REF 05.0000 08/01/2020 0.09%
LOWER COLORADO RIVER 05.0000 05/15/2040 0.09%
MA DEV FIN AGY 05.0000 07/01/2034 0.09%
MA DEV FIN AGY 05.0000 07/01/2036 0.09%
NEW HOPE ED FACS 05.5000 01/01/2043 0.09%
NORTH CAROLINA ST TUR 05.0000 01/01/2039 0.09%
REGL TRN-DENVER TRN 06.0000 01/15/2041 0.09%
CA STWD CMNTYS DEV-A 05.2500 11/01/2044 0.08%
CENTRL TX REGL MOBILITY 05.0000 01/01/2033 0.08%
CHICAGO O'HARE ARPT-D 05.0000 01/01/2042 0.08%
CHICAGO O'HARE ARPT-G 05.0000 01/01/2037 0.08%
CO HLTH FACS AUTH 05.5000 06/01/2033 0.08%
CUMBERLAND AUTH-A-PRE 05.1500 01/01/2018 0.08%
DAUPHIN GEN AUTH-A 05.0000 06/01/2034 0.08%
FAIRFAX CNTY VA ECON 05.0000 10/01/2036 0.08%
ILLINOIS ST 05.0000 01/01/2041 0.08%
MA DEV FIN AGY-I 05.0000 07/01/2037 0.08%
MICHIGAN ST FIN AUTH 04.5000 10/01/2029 0.08%
SACRAMENTO TRAN-UNREF 05.0000 03/01/2025 0.08%
SCIOTO CO HOSP FACS 05.0000 02/15/2034 0.08%
TOB SETTLE-C 05.3750 06/01/2038 0.08%
CORONA-NORCO SD-A 05.0000 09/01/2035 0.07%
IN FIN AUTH-AMT-A-REF 01.2000 05/01/2034 0.07%
N TOLLWAY-UNREF-A 06.0000 01/01/2025 0.07%
N TX TOLL-A-UNREF 05.1250 01/01/2028 0.07%
NH HLTH & EDU FACS 05.0000 10/01/2046 0.07%
WESTMORELAND CO AUTH 05.0000 08/15/2027 0.07%
CENTRE CO HOSP-A-REF 05.0000 11/15/2041 0.06%
DAUPHIN GEN AUTH-A 05.0000 06/01/2036 0.06%
E HEMPFIELD TWP IDA 05.0000 07/01/2029 0.06%
FL MUNI PWR-A-UNREF 05.0000 10/01/2031 0.06%
GUAM PWR AUTH-A-REF 05.0000 10/01/2030 0.06%
IL FIN AUTH 04.0000 11/15/2031 0.06%
MIAMI DADE AVIATION 05.0000 10/01/2028 0.06%
MYRTLE BEACH SC TAX I 05.0000 10/01/2028 0.06%
NY DORM ED-SER B 05.7500 03/15/2036 0.06%
PITTSBURGH 04.0000 09/01/2033 0.06%
PITTSBURGH 05.0000 09/01/2036 0.06%
S E OVERTOWN PK P/P 144A 05.0000 03/01/2030 0.06%
TARRANT EDU FAC-UNREF 05.2500 11/15/2027 0.06%
VT EDU HLTH BLDG FIN 05.0000 12/01/2035 0.06%
VT EDU HLTH BLDG FIN 05.0000 12/01/2036 0.06%
CLIFTON HGR EDU FIN 05.0000 08/15/2027 0.05%
GAINESVILLE ETC DEV 05.0000 03/01/2037 0.05%
HENRICO ECON DEV-REF 05.0000 06/01/2023 0.05%
HENRICO ECON DEV-REF 05.0000 06/01/2025 0.05%
LOUISVILLE ARPT-A-AMT 05.0000 07/01/2031 0.05%
MAIN ST NAT GAS INC-A 05.5000 09/15/2021 0.05%
MI FIN AUTH-D-2 05.0000 07/01/2034 0.05%
MINNESOTA ST HGR EDU 04.0000 03/01/2036 0.05%
NJ ECON DEV-AA-PREREF 05.2500 12/15/2033 0.05%
OH HSG FIN SFM-1 05.0000 11/01/2028 0.05%
SCIOTO CO HOSP FACS 05.0000 02/15/2033 0.05%
TARRANT EDU FAC-PRERF 05.2500 11/15/2027 0.05%
ARLINGTON HGR EDU-A 04.0000 12/01/2031 0.04%
MINNEAPOLIS HLTH-B1-A 00.7300 11/15/2035 0.04%
N TX TOLL AUTH-UNREF 05.6250 01/01/2033 0.04%
NC MUNI PWR 1-UNREF 05.0000 01/01/2030 0.04%
WA ST HSG FIN-A-REF 05.0000 07/01/2036 0.04%
WI GEN FUND-A-PREREF 06.0000 05/01/2027 0.04%
CO HLTH FACS-UNREF 05.2500 06/01/2022 0.03%
FORSYTH HOSP-GA BAPTI 06.2500 10/01/2018 0.03%
IN FIN AUTH-B-REF 01.0500 05/01/2028 0.03%
MA DEV FIN AGY 05.0000 07/01/2035 0.03%
MI FIN AUTH-C-6 05.0000 07/01/2033 0.03%
NYC IDA QUEENS BASEBA 05.0000 01/01/2023 0.03%
PARK CREEK CO MET-A 05.0000 12/01/2045 0.03%
CA WTR RES-AE-UNREF 05.0000 12/01/2029 0.02%
CHICAGO MTR FUEL TAX 05.0000 01/01/2030 0.02%
CUMBERLAND CNTY PA MU 05.0000 01/01/2032 0.02%
GUAM PWR AUTH-A-REF 05.0000 10/01/2034 0.02%
LEANDER ISD-UNREF 00.0000 08/15/2019 0.02%
LWR COLORADO RIVER 05.0000 05/15/2033 0.02%
MTA-A-PREREF 05.5000 11/15/2039 0.02%
SOUTHEASTERN OH PORT 05.5000 12/01/2043 0.02%
CUMBERLAND CNTY PA MU 05.0000 01/01/2031 0.01%
DIST COLUM REV-PRERF 06.5000 10/01/2041 0.01%
E STROUDSBRG SD-PRERF 05.0000 09/01/2027 0.01%
MA DEV FIN-A-PREREF 05.7500 07/01/2039 0.01%
STUB 05.2500 04/01/2024 0.01%
CASA GRANDE IDA-REF-A ESCROW 07.6250 12/01/2029 0.00%
DETROIT WTR-B-UNREF 06.2500 07/01/2036 0.00%
RED RIVER HLTH FAC-A 05.1500 11/15/2027 0.00%
RED RIVER HLTH FAC-A 06.0500 11/15/2046 0.00%
RED RIVER HLTH FAC-D 06.0500 11/15/2046 0.00%
RED RIVER HLTH-B 06.1500 11/15/2049 0.00%
RED RIVER HLTH-C 06.2500 05/09/2053 0.00%

Prior top 10 holdings

Top 10 holdings as of 09/30/17
Ny Dorm Univ Edl -A 05.5000 05/15/2019
Henrico Indl-Reg Link 05.9290 08/23/2027
N Tx Twy Cab-Ref-I 06.5000 01/01/2043
Ny Dorm City Univ 2nd 06.0000 07/01/2020
Ca St-Var Purp 05.5000 03/01/2040
Reno S/Tax-Var-Rf-Ret 01.0100 06/01/2042
Port Auth Ny & Nj-205 05.0000 11/15/2047
Great Lakes Wtr-C-Ref 05.0000 07/01/2036
N Tx Hwy Cabs-Ref-1st 00.0000 01/01/2028
Dist Of Columbia-D 05.0000 06/01/2041
Holdings represent 10.83% of portfolio
Top 10 holdings as of 08/31/17
Ny Dorm Univ Edl -A 05.5000 05/15/2019
Henrico Indl-Reg Link 05.9290 08/23/2027
N Tx Twy Cab-Ref-I 06.5000 01/01/2043
Ny Dorm City Univ 2nd 06.0000 07/01/2020
Ca St-Var Purp 05.5000 03/01/2040
Reno S/Tax-Var-Rf-Ret 00.9400 06/01/2042
Port Auth Ny & Nj-205 05.0000 11/15/2047
Great Lakes Wtr-C-Ref 05.0000 07/01/2036
N Tx Hwy Cabs-Ref-1st 00.0000 01/01/2028
Dist Of Columbia-D 05.0000 06/01/2041
Holdings represent 10.84% of portfolio
Top 10 holdings as of 07/31/17
Ny Dorm Univ Edl -A 05.5000 05/15/2019
Henrico Indl-Reg Link 05.9290 08/23/2027
N Tx Twy Cab-Ref-I 06.5000 01/01/2043
Ny Dorm City Univ 2nd 06.0000 07/01/2020
Ca St-Var Purp 05.5000 03/01/2040
Reno S/Tax-Var-Rf-Ret 00.8200 06/01/2042
Port Auth Ny & Nj-205 05.0000 11/15/2047
Great Lakes Wtr-C-Ref 05.0000 07/01/2036
N Tx Hwy Cabs-Ref-1st 00.0000 01/01/2028
Dist Of Columbia-D 05.0000 06/01/2041
Holdings represent 10.90% of portfolio
Top 10 holdings as of 06/30/17
Ny Dorm Univ Edl -A 05.5000 05/15/2019
Henrico Indl-Reg Link 05.9290 08/23/2027
N Tx Twy Cab-Ref-I 06.5000 01/01/2043
Ny Dorm City Univ 2nd 06.0000 07/01/2020
Ca St-Var Purp 05.5000 03/01/2040
Reno S/Tax-Var-Rf-Ret 01.0000 06/01/2042
N Tx Hwy Cabs-Ref-1st 00.0000 01/01/2028
Great Lakes Wtr-C-Ref 05.0000 07/01/2036
Delaware Rvr Port 05.0000 01/01/2030
Id Hsg & Fin 04.0000 07/15/2030
Holdings represent 11.95% of portfolio

Portfolio composition as of 09/30/17

Municipal bonds and notes 97.78%
Cash and net other assets 2.22%

Fixed income statistics as of 09/30/17

Average stated maturity 17.93 yrs.
Average effective maturity 5.98 yrs.
Option adjusted duration 7.08 yrs.
Duration to worst 4.80 yrs.
Average yield to maturity 3.61%
Average coupon 4.87%
Average price $108.80
AMT exposure 6.74%

Quality rating as of 09/30/17

AAA 4.74%
AA 36.08%
A 37.63%
BBB 14.83%
BB 0.69%
B 0.81%
Not Rated 3.00%
Cash and net other assets 2.22%

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Consider these risks before investing: Capital gains, if any, are taxable for federal and, in most cases, state purposes. For some investors, investment income may be subject to the federal alternative minimum tax. Income from federally tax-exempt funds may be subject to state and local taxes. 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. Bond prices may fall or fail to rise over time for several reasons, including general financial market conditions, changing market perceptions (including perceptions about the risk of default and expectations about monetary policy or interest rates), changes in government intervention in the financial markets, and factors related to a specific issuer or industry. These and other factors may lead to increased volatility and reduced liquidity in the fund's portfolio holdings. You can lose money by investing in the fund.

Credit qualities are shown as a percentage of net assets as of the date indicated above. 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 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 09/30/17

Utilities 16.32%
State Debt 14.03%
Health care 13.92%
Transportation 13.57%
Prerefunded 8.66%
Education 8.35%
Local Debt 7.70%
Special Tax 5.43%
Cash and net other assets 2.22%
 
Other
9.80%
Financials 2.10%
Industrials 1.85%
Housing 1.59%
Other 1.58%
Tobacco 1.36%
Land 1.32%

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 0.77% 1.40% 1.55% 1.05% 0.55%
What you pay 0.77% 1.40% 1.55% 1.05% 0.55%

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: Capital gains, if any, are taxable for federal and, in most cases, state purposes. For some investors, investment income may be subject to the federal alternative minimum tax. Income from federally tax-exempt funds may be subject to state and local taxes. 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. Bond prices may fall or fail to rise over time for several reasons, including general financial market conditions, changing market perceptions (including perceptions about the risk of default and expectations about monetary policy or interest rates), changes in government intervention in the financial markets, and factors related to a specific issuer or industry. These and other factors may lead to increased volatility and reduced liquidity in the fund's portfolio holdings. You can lose money by investing in the fund.

Credit qualities are shown as a percentage of net assets as of the date indicated above. 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 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.