Putnam California Tax Exempt Income Fund Prospecting letter

(Note to investment representative: Retype this letter on your firm’s letterhead, which must include your FINRA member name, address, and phone.)

[Insert Rep Name]
[Insert Firm Name]
[Insert Address]
[Insert Phone]
[Insert Date]

[Mr. and Mrs. Steven Jones]
[125 Main Street]
[Anytown, USA  00111]

Dear [Investor]:

With a soaring federal government deficit and California facing its own significant budget gaps, experts predict higher taxes are on the horizon. 

With that in mind, I would like to tell you more about Putnam California Tax Exempt Income Fund. The fund seeks to generate an attractive level of income free from federal and California state income taxes while also preserving shareholders’ capital.

The fund is managed by Putnam’s Tax Exempt Fixed-Income group, whose members average more than 20 years of industry experience and have been working together since 1994. The team uses a time-tested approach to investing, and their focus on risk management and intensive fundamental research has helped produce attractive results, even during periods of market volatility.

Let’s meet soon to discuss how a municipal bond fund may help create a stream of tax-free income. Together, we can determine what role Putnam California Tax Exempt Income Fund may play in helping you pursue your financial goals.

Sincerely,

Your name and title

Not FDIC Insured 	May Lose Value	No Bank Guarantee	

State tax-exempt funds invest in fewer issuers or concentrate their investments by region or sector, and involve more risk than funds that invest more broadly. 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. Funds that invest in bonds are subject to certain risks including interest-rate risk, credit risk, and inflation risk. As interest rates rise, the prices of bonds fall. Long-term bonds are more exposed to interest-rate risk than short-term bonds. Unlike bonds, bond funds have ongoing fees and expenses. Diversification does not assure a profit or protect against loss. It is possible to lose money in a diversified portfolio.

You should carefully consider the investment objectives, risks, charges, and expenses of a fund before investing. For a prospectus, or a summary prospectus if available, containing this and other information for any Putnam fund or product, call me or call Putnam Investments at 1-800-255-1581. Read the prospectus carefully before investing.
Putnam Retail Management                                                                                                            EO049 272082 3/12