NPORT-EX 2 b_582nport073122.htm QUARTERLY PORTFOLIO HOLDINGS
Putnam Municipal Opportunities Trust
The fund's portfolio
7/31/22 (Unaudited)
Key to holding's abbreviations
AGM — Assured Guaranty Municipal Corporation
AMBAC — AMBAC Indemnity Corporation
BAM — Build America Mutual
COP — Certificates of Participation
FRB — Floating Rate Bonds: The rate shown is the current interest rate at the close of the reporting period. Rates may be subject to a cap or floor. For certain securities, the rate may represent a fixed rate currently in place at the close of the reporting period.
G.O. Bonds — General Obligation Bonds
NATL — National Public Finance Guarantee Corporation
PSFG — Permanent School Fund Guaranteed
Q-SBLF — Qualified School Board Loan Fund








MUNICIPAL BONDS AND NOTES (147.8%)(a)
    Rating(RAT)   Principal amount Value
Alabama (1.2%)
Jefferson Cnty., Swr. Rev. Bonds, Ser. D, 6.50%, 10/1/53 BBB $2,000,000 $2,190,047
Jefferson, Cnty. Rev. Bonds, (Refunding warrants)
5.00%, 9/15/34 AA 2,075,000 2,290,861
5.00%, 9/15/33 AA 275,000 304,281
4,785,189
Alaska (1.4%)
AK State Indl. Dev. & Export Auth. Rev. Bonds, (Tanana Chiefs Conference), Ser. A, 4.00%, 10/1/49 A+/F 5,890,000 5,654,712
5,654,712
Arizona (3.4%)
AZ Indl. Dev. Auth. Student Hsg. Rev. Bonds, (NCCU Properties, LLC Central U.), BAM, 5.00%, 6/1/49 AA 2,000,000 2,178,358
AZ State Indl. Dev. Auth. Charter School Rev. Bonds, (Equitable School Revolving Fund, LLC), 4.00%, 11/1/46 A 2,855,000 2,718,004
AZ State Indl. Dev. Auth. Ed. Rev. Bonds, (KIPP New York, Inc., Jerome Fac.), Ser. B
4.00%, 7/1/61 BBB- 1,380,000 1,152,936
4.00%, 7/1/41 BBB- 720,000 666,298
AZ State Indl. Dev. Auth. Ed. 144A Rev. Bonds, (BASIS Schools, Inc.), Ser. D, 5.00%, 7/1/51 BB 510,000 511,078
Maricopa Cnty., Indl. Dev. Auth. Ed. Rev. Bonds
(Reid Traditional Schools Painted Rock Academy), 5.00%, 7/1/36 Baa3 350,000 364,920
(Horizon Cmnty. Learning Ctr.), 5.00%, 7/1/35 BB+ 750,000 760,384
Phoenix, Indl. Dev. Auth. Ed. Rev. Bonds, (Great Hearts Academies), 3.75%, 7/1/24 BBB- 200,000 201,210
Phoenix, Indl. Dev. Auth. Ed. 144A Rev. Bonds, (BASIS Schools, Inc.), 5.00%, 7/1/35 BB 1,000,000 1,012,384
Salt Verde, Fin. Corp. Gas Rev. Bonds, 5.50%, 12/1/29 A3 1,350,000 1,530,631
Yavapai Cnty., Indl. Dev. Auth. Hosp. Fac. Rev. Bonds, (Yavapai Regl. Med. Ctr.), 5.00%, 8/1/34 A2 500,000 527,551
Yuma, Indl. Dev. Auth. Hosp. Rev. Bonds, (Yuma Regl. Med. Ctr.), Ser. A, 5.00%, 8/1/32 A 2,065,000 2,139,150
13,762,904
California (15.2%)
CA Cmnty. Hsg. Agcy. Essential Hsg. 144A Rev. Bonds, (Aster Apt.), Ser. A-1, 4.00%, 2/1/56 BB+/P 550,000 509,820
CA Hsg. Fin. Agcy. Muni. Certif. Rev. Bonds, Ser. 21-1, Class A, 3.50%, 11/20/35 BBB+ 2,059,418 1,993,917
CA State G.O. Bonds 4.00%, 11/1/33(T) Aa2 10,000,000 10,671,600
CA State Muni. Fin. Auth Mobile Home Park Rev. Bonds, (Caritas Affordable Hsg., Inc.), 5.25%, 8/15/39 A- 400,000 410,891
CA State Muni. Fin. Auth. Rev. Bonds, (HumanGood CA Oblig. Group), 4.00%, 10/1/49 A-/F 2,700,000 2,638,998
CA State Poll. Control Fin. Auth. Rev. Bonds, (San Jose Wtr. Co.), 4.75%, 11/1/46 A 750,000 778,660
CA State Pub. Wks. Board Rev. Bonds, (Various Cap.), Ser. A, 5.00%, 8/1/33 Aa3 800,000 959,907
CA Statewide Cmnty. Dev. Auth. Rev. Bonds, (Front Porch Cmnty. & Svcs. Oblig. Group), Ser. A, 3.00%, 4/1/51 A- 3,440,000 2,695,096
CSCDA Cmnty. Impt. Auth. Rev. Bonds, (Pasadena Portfolio), Ser. A-2, 3.00%, 12/1/56 BBB-/P 2,635,000 1,996,107
CSCDA Cmnty. Impt. Auth. 144A Rev. Bonds
(Anaheim), 4.00%, 8/1/56 BB/P 2,125,000 1,816,571
(City of Orange Portfolio), 3.00%, 3/1/57 BBB-/P 650,000 491,911
(Essential Hsg.), Ser. A-2, 3.00%, 2/1/57 BBB-/P 1,900,000 1,438,416
Long Beach, Arpt. Syst. Rev. Bonds, Ser. C, AGM
5.25%, 6/1/47 AA 1,250,000 1,379,775
5.00%, 6/1/42 AA 750,000 821,258
Los Angeles, Cmnty. Fac. Dist. No. 11 Special Tax, 4.00%, 9/1/38 BB/P 1,000,000 982,292
Los Angeles, Dept. of Arpt. Rev. Bonds
Ser. A, 4.00%, 5/15/39 Aa3 1,150,000 1,156,802
4.00%, 5/15/36 Aa3 500,000 510,045
Mount Diablo Unified School Dist. G.O. Bonds, Ser. B
4.00%, 6/1/37 Aa3 1,625,000 1,698,772
4.00%, 8/1/36 Aa3 2,960,000 3,124,152
North Natomas, Cmnty. Fac. Special Tax Bonds, (Dist. No. 4), Ser. E, 5.00%, 9/1/30 BBB+ 1,250,000 1,284,372
Regents of the U. of CA Med. Ctr. (The) Rev. Bonds, Ser. P
5.00%, 5/15/42 Aa3 13,000,000 14,881,161
5.00%, 5/15/41 Aa3 5,260,000 6,038,363
San Bernardino Cnty., FRB, Ser. C, 1.943%, 8/1/23 AA+ 550,000 547,302
San Diego Cnty., COP, 5.00%, 10/1/46 Aa1 2,150,000 2,473,442
61,299,630
Colorado (4.2%)
CO State Hlth. Fac. Auth. Rev. Bonds
(Valley View Hosp. Assn.), 5.00%, 5/15/40 A 1,000,000 1,031,886
(Covenant Retirement Cmnty.), Ser. A, 5.00%, 12/1/35 A-/F 1,000,000 1,026,243
CO State Hlth. Fac. Auth. Hosp. Rev. Bonds
(Christian Living Neighborhood), 5.00%, 1/1/37 BB/P 550,000 552,029
(Covenant Living Cmnty. and Svcs. Oblig. Group), 4.00%, 12/1/50 A-/F 2,700,000 2,479,630
Denver City & Cnty., Arpt. Rev. Bonds, Ser. A
5.50%, 11/15/38 Aa3 1,500,000 1,764,028
5.00%, 11/15/37 Aa3 2,600,000 2,949,008
Park Creek, Metro. Dist. Tax Alloc. Bonds, (Sr. Ltd. Property Tax Supported), Ser. A, 5.00%, 12/1/45 A/F 200,000 214,041
Pub. Auth. for CO Energy Rev. Bonds, (Natural Gas Purchase), 6.50%, 11/15/38 A2 2,250,000 2,883,144
Regl. Trans. Dist. Rev. Bonds, (Denver Transit Partners, LLC)
4.00%, 7/15/38 Baa1 800,000 808,472
3.00%, 7/15/37 Baa1 850,000 733,383
Sterling Ranch Cmnty. Auth. Board Rev. Bonds, (Metro. Dist. No. 2), Ser. A, 4.25%, 12/1/50 BB/P 550,000 481,053
Vauxmont, Metro. Dist. G.O. Bonds, AGM
5.00%, 12/1/33 AA 255,000 292,785
5.00%, 12/15/32 AA 160,000 174,423
5.00%, 12/15/31 AA 135,000 147,393
5.00%, 12/1/30 AA 215,000 250,872
5.00%, 12/1/29 AA 210,000 246,339
5.00%, 12/15/28 AA 130,000 142,404
5.00%, 12/1/27 AA 200,000 228,128
5.00%, 12/15/26 AA 135,000 148,274
5.00%, 12/1/26 AA 190,000 212,645
16,766,180
Connecticut (1.4%)
CT State Special Tax, 4.00%, 5/1/39 AA- 1,700,000 1,744,996
CT State Hlth. & Edl. Fac. Auth. Rev. Bonds, (Stamford Hosp. Oblig. Group (The)), Ser. M
5.00%, 7/1/34 BBB+ 1,900,000 2,110,716
4.00%, 7/1/41 BBB+ 580,000 568,349
Harbor Point Infrastructure Impt. Dist. 144A Tax Alloc. Bonds, (Harbor Point Ltd.), 5.00%, 4/1/39 BB/P 1,000,000 1,049,039
5,473,100
District of Columbia (3.6%)
DC Rev. Bonds
(Plenary Infrastructure DC, LLC), 5.50%, 2/28/37 A3 1,500,000 1,674,531
(Plenary Infrastructure DC, LLC), 5.50%, 2/29/36 A3 1,370,000 1,544,349
(Ingleside at Rock Creek), Ser. A, 5.00%, 7/1/52 BB-/P 500,000 479,039
(Two Rivers Pub. Charter School, Inc.), 5.00%, 6/1/50 Baa3 1,500,000 1,537,695
(Latin American Montessori Bilingual Pub. Charter School Oblig. Group), 5.00%, 6/1/40 BB+ 2,000,000 2,061,266
(Two Rivers Pub. Charter School, Inc.), 5.00%, 6/1/40 Baa3 1,500,000 1,559,867
Metro. DC Arpt. Auth. Rev. Bonds, Ser. A, 5.00%, 10/1/32 Aa3 1,250,000 1,464,760
Metro. Washington, Arpt. Auth. Dulles Toll Rd. Rev. Bonds, (Metrorail), Ser. A, zero %, 10/1/37 A- 3,700,000 1,816,075
Metro. Washington DC, Arpt. Auth. Dulles Toll Rd. Rev. Bonds, (Dulles Metrorail & Cap. Impt. Proj.)
4.00%, 10/1/53(T) A- 1,290,000 1,213,697
Ser. B, 4.00%, 10/1/44(T) A- 1,285,000 1,244,767
14,596,046
Florida (6.0%)
FL State Dev. Fin. Corp. Ed. Fac. Rev. Bonds, (River City Ed.)
5.00%, 7/1/57(WIS) Baa3 680,000 640,764
5.00%, 7/1/51(WIS) Baa3 650,000 628,346
5.00%, 7/1/42(WIS) Baa3 460,000 454,843
FL State Higher Edl. Fac. Financial Auth. Rev. Bonds
(St. Leo U.), 5.00%, 3/1/44 BB+ 1,500,000 1,515,854
(Florida Inst. of Tech., Inc.), 4.00%, 10/1/39 BBB- 800,000 763,919
Halifax Hosp. Med. Ctr. Rev. Bonds, 5.00%, 6/1/36 A- 2,250,000 2,376,218
Lakeland, Hosp. Syst. Rev. Bonds, (Lakeland Regl. Hlth.), 5.00%, 11/15/40 A2 1,350,000 1,386,828
Miami-Dade Cnty., Aviation Rev. Bonds, Ser. A
5.00%, 10/1/36 A1 5,000,000 5,190,161
5.00%, 10/1/32 A1 3,790,000 3,949,662
Orange Cnty., Hlth. Fac. Auth. Rev. Bonds, (Presbyterian Retirement Cmntys.), 5.00%, 8/1/34 A-/F 1,350,000 1,400,355
Palm Beach Cnty., Hlth. Fac. Auth. Rev. Bonds, (Jupiter Med. Ctr.), Ser. A, 5.00%, 11/1/47 BBB- 1,515,000 1,581,118
Pinellas Cnty., Indl. Dev. Auth. Rev. Bonds, (2017 Foundation for Global Understanding, Inc.), 5.00%, 7/1/39 AAA/P 500,000 515,293
Southeast Overtown Park West Cmnty. Redev. Agcy. 144A Tax Alloc. Bonds, Ser. A-1, 5.00%, 3/1/30 BBB+ 360,000 371,521
Village, 144A Special Assmt., (Village Cmnty. Dev. Dist. No. 13), 3.00%, 5/1/35 BB-/P 2,475,000 2,164,764
Volusia Cnty., Edl. Fac. Auth. Rev. Bonds, (Embry-Riddle Aeronautical University, Inc.), Ser. A
4.00%, 10/15/39 A2 600,000 603,108
4.00%, 10/15/36 A2 500,000 507,576
24,050,330
Georgia (3.5%)
Atlanta, Arpt. Rev. Bonds, (Dept. of Aviation), Ser. C, 4.00%, 7/1/42 Aa3 800,000 801,145
Muni. Election Auth. of GA Rev. Bonds, (Plant Vogtle Units 3 & 4)
Ser. A, 5.50%, 7/1/60 A 3,500,000 3,659,774
AGM, 5.00%, 1/1/62 AA 1,000,000 1,055,165
5.00%, 1/1/56 BBB+ 650,000 679,520
4.50%, 7/1/63 A 4,250,000 4,335,748
4.00%, 1/1/51 A2 500,000 486,312
4.00%, 1/1/51 BBB+ 425,000 403,181
Paulding Cnty., Hosp. Auth. Rev. Bonds, (WellStar Hlth. Syst.)
5.00%, 4/1/43 A+ 1,400,000 1,546,904
4.00%, 4/1/41 A+ 1,000,000 1,014,054
13,981,803
Hawaii (0.5%)
HI State Harbor Syst. Rev. Bonds
Ser. C, 4.00%, 7/1/40 Aa3 300,000 310,707
Ser. A, 4.00%, 7/1/35 Aa3 1,700,000 1,783,507
2,094,214
Illinois (17.5%)
Chicago, G.O. Bonds
Ser. A, 5.00%, 1/1/27 BBB+ 1,850,000 1,994,705
Ser. B, 4.00%, 1/1/38 BBB+ 2,060,000 2,040,603
Ser. B, 4.00%, 1/1/35 BBB+ 3,117,000 3,128,789
Chicago, Board of Ed. G.O. Bonds
Ser. C, 5.25%, 12/1/39 BB 2,250,000 2,311,607
Ser. B, 5.00%, 12/1/36 BB 2,500,000 2,662,553
Ser. H, 5.00%, 12/1/36 BB 500,000 527,353
Chicago, O'Hare Intl. Arpt. Rev. Bonds, Ser. A
5.00%, 1/1/38 A 100,000 107,467
5.00%, 1/1/37 A 300,000 323,874
Chicago, Trans. Auth. Sales Tax Rev. Bonds, 5.25%, 12/1/49 AA 3,000,000 3,125,322
Chicago, Waste Wtr. Transmission Rev. Bonds
Ser. C, 5.00%, 1/1/39 A 900,000 936,554
(2nd Lien), 5.00%, 1/1/39 A 1,835,000 1,871,676
IL State G.O. Bonds
5.50%, 7/1/38 Baa1 2,280,000 2,337,814
5.50%, 5/1/30 Baa1 1,250,000 1,439,673
Ser. A, 5.00%, 5/1/38 Baa1 1,500,000 1,591,125
Ser. A, 5.00%, 12/1/31 Baa1 5,750,000 6,201,370
Ser. C, 5.00%, 11/1/29 Baa1 1,850,000 2,011,611
5.00%, 2/1/29 Baa1 1,425,000 1,538,696
Ser. A, 5.00%, 12/1/28 Baa1 2,500,000 2,737,897
Ser. D, 5.00%, 11/1/28 Baa1 2,250,000 2,463,002
Ser. D, 5.00%, 11/1/27 Baa1 1,000,000 1,102,167
Ser. A, 4.00%, 3/1/40 Baa1 1,500,000 1,448,102
IL State Fin. Auth. Rev. Bonds
(Lifespace Cmntys, Inc.), Ser. A, 5.00%, 5/15/35 BBB/F 1,025,000 1,037,140
(Riverside Hlth.Syst.), 4.00%, 11/15/34 A+ 500,000 510,224
IL State Fin. Auth. Academic Fac. Rev. Bonds, (U. of Illinois at Urbana-Champaign), Ser. A
5.00%, 10/1/44 Aa3 1,100,000 1,222,951
5.00%, 10/1/36 Aa3 600,000 680,308
5.00%, 10/1/34 Aa3 500,000 569,313
IL State Fin. Auth. Student Hsg. & Academic Fac. Rev. Bonds
(U. of IL Chicago), 5.00%, 2/15/50 Baa3 2,000,000 1,976,375
(U. of IL-CHF-Chicago, LLC), Ser. A, 5.00%, 2/15/37 Baa3 1,000,000 1,007,944
Metro. Pier & Exposition Auth. Rev. Bonds, (McCormick Place Expansion)
4.00%, 6/15/50 A- 1,000,000 945,780
Ser. B, stepped-coupon zero % (4.700%, 6/15/31), 12/15/37(STP) A- 1,000,000 631,987
Metro. Pier & Exposition Auth. Dedicated State Tax Rev. Bonds, (McCormick), Ser. A, NATL, zero %, 12/15/30 A- 12,000,000 8,932,865
Metro. Wtr. Reclamation Dist. of Greater Chicago G.O. Bonds, (Green Bond), Ser. E, 5.00%, 12/1/30 AA 1,310,000 1,455,227
Sales Tax Securitization Corp. Rev. Bonds
Ser. C, 5.50%, 1/1/36 AA- 3,500,000 3,965,388
Ser. A, 5.00%, 1/1/36 AA- 1,400,000 1,566,040
Ser. A, 4.00%, 1/1/39 AA- 2,500,000 2,506,935
Southern IL U. Rev. Bonds, (Hsg. & Auxiliary), Ser. A, NATL, zero %, 4/1/25 Baa2 1,870,000 1,716,498
70,626,935
Indiana (2.6%)
Hammond, Multi-School Bldg. Corp. Rev. Bonds, 5.00%, 7/15/38 AA+ 1,750,000 1,889,908
IN State Fin. Auth. Hosp. Mandatory Put Bonds (11/1/26), (Goshen Hlth. Oblig. Group), Ser. B, 2.10%, 11/1/49 A- 2,700,000 2,674,855
IN State Fin. Auth. Waste Wtr. Util. Rev. Bonds, (CWA Authority, Inc.)
5.00%, 10/1/35 AA 850,000 1,021,663
5.00%, 10/1/34 AA 1,325,000 1,603,874
5.00%, 10/1/32 AA 700,000 860,178
5.00%, 10/1/31 AA 800,000 973,216
Silver Creek, School Bldg. Corp. Rev. Bonds, 3.00%, 1/15/42 AA+ 1,600,000 1,443,142
10,466,836
Iowa (0.7%)
IA State Fin. Auth. Rev. Bonds, (Lifespace Cmnty., Inc. Oblig. Group), Ser. A, 4.00%, 5/15/46 BBB/F 2,000,000 1,645,965
IA Tobacco Settlement Auth. Rev. Bonds, Ser. B-1, Class 2, 4.00%, 6/1/49 BBB 1,180,000 1,187,881
2,833,846
Kentucky (3.0%)
KY State Property & Bldg. Comm. Rev. Bonds
(No. 119), 5.00%, 5/1/36 A1 1,000,000 1,095,909
(No. 122), Ser. A, 4.00%, 11/1/34 A1 750,000 800,510
KY State Pub. Energy Auth. Gas Supply
Mandatory Put Bonds (8/1/25), Ser. C-1, 4.00%, 12/1/49 A1 5,500,000 5,653,331
Mandatory Put Bonds (1/1/25), Ser. B, 4.00%, 1/1/49 A1 3,000,000 3,058,830
Louisville, Regl. Arpt. Auth. Syst. Rev. Bonds, Ser. A
5.00%, 7/1/32 A+ 1,030,000 1,069,847
5.00%, 7/1/31 A+ 385,000 400,365
12,078,792
Louisiana (1.4%)
LA State Offshore Term. Auth. Deepwater Port Mandatory Put Bonds (12/1/23), (Loop, LLC), Ser. A, 1.65%, 9/1/33 A3 1,600,000 1,588,806
St. John The Baptist Parish Mandatory Put Bonds (7/1/26), (Marathon Oil Corp.), Ser. A-3, 2.20%, 6/1/37 Baa3 3,010,000 2,867,991
Tangipahoa Parish, Hosp. Svcs. Rev. Bonds, (North Oaks Hlth. Syst.), 4.00%, 2/1/42 BBB+ 1,250,000 1,218,506
5,675,303
Maryland (0.4%)
Gaithersburg, Econ. Dev. Rev. Bonds, (Asbury, Oblig. Group), Ser. A, 5.00%, 1/1/36 BBB/F 450,000 470,790
MD Econ. Dev. Corp. Rev. Bonds, (Morgan State U.), 4.25%, 7/1/50 BBB- 1,350,000 1,234,482
1,705,272
Massachusetts (5.2%)
MA State Dev. Fin. Agcy. Rev. Bonds
(Milford Regl. Med. Ctr. Oblig. Group), Ser. F, 5.75%, 7/15/43 BB 500,000 508,943
(Loomis Cmntys.), Ser. A, 5.75%, 1/1/28 (Prerefunded 1/1/23) BBB 1,100,000 1,119,005
(Northeastern U.), 5.00%, 10/1/39(FWC) A1 2,000,000 2,299,062
(Intl. Charter School), 5.00%, 4/15/33 BBB- 1,000,000 1,033,002
(Atrius Hlth. Oblig. Group), Ser. A, 4.00%, 6/1/49 (Prerefunded 6/1/29) BBB 5,470,000 6,074,240
MA State Dev. Fin. Agcy. 144A Rev. Bonds, (Linden Ponds, Inc. Fac.), 5.00%, 11/15/38 A/F 1,410,000 1,495,402
MA State Edl. Fin. Auth. Rev. Bonds, (Ed. Loan - Issue 1), 5.00%, 1/1/27 AA 800,000 841,890
MA State Trans. Fund Rev. Bonds, (Rail Enhancement & Accelerated Bridge Program), 5.00%, 6/1/48(T) Aa1 7,000,000 7,768,740
21,140,284
Michigan (5.9%)
Detroit, G.O. Bonds, AMBAC, 5.25%, 4/1/24 A-/P 222,425 222,430
Detroit, City School Dist. G.O. Bonds, Ser. A, AGM, 6.00%, 5/1/29 Aa1 920,000 1,066,521
Kentwood, Economic Dev. Corp. Rev. Bonds, (Holland Home Oblig. Group), 5.00%, 11/15/37 BBB-/F 1,750,000 1,780,916
MI State Fin. Auth. Rev. Bonds
Ser. H-1, 5.00%, 10/1/39 (Prerefunded 10/1/24) AA- 1,575,000 1,647,428
(Local Govt. Loan Program - Detroit Wtr. & Swr. Dept. (DWSD)), Ser. C, 5.00%, 7/1/35 A+ 1,100,000 1,171,360
(Local Govt. Loan Program - Detroit Wtr. & Swr. Dept. (DWSD)), Ser. C, 5.00%, 7/1/34 A+ 1,900,000 2,024,909
(Local Govt. Loan Program - Detroit Wtr. & Swr. Dept. (DWSD)), Ser. D-2, 5.00%, 7/1/34 A+ 1,000,000 1,065,741
(Local Govt. Program Detroit Wtr. & Swr.), Ser. D4, 5.00%, 7/1/34 AA- 100,000 104,297
(Detroit Wtr. & Swr.), Ser. C-6, 5.00%, 7/1/33 AA- 850,000 888,636
(Detroit), Ser. C-3, 5.00%, 4/1/27 Aa2 750,000 837,625
(Trinity Health Corp. Oblig. Group), Ser. A, 4.00%, 12/1/49(T) AA- 2,575,000 2,541,551
MI State Fin. Auth. Ltd. Oblig. Rev. Bonds, (Lawrence Tech. U.), 4.00%, 2/1/42 BBB- 745,000 685,120
Pontiac City, G.O. Bonds, (Pontiac School Dist.), Q-SBLF
4.00%, 5/1/45(T) Aa1 4,424,000 4,520,886
4.00%, 5/1/50(T) Aa1 4,977,000 5,072,160
23,629,580
Minnesota (0.6%)
Rice Cnty., G.O. Bonds, Ser. A, 4.00%, 2/1/48(FWC) AAA 2,500,000 2,562,104
2,562,104
Mississippi (0.4%)
MS State Bus. Fin. Corp. Rev. Bonds, (System Energy Resources, Inc.), 2.375%, 6/1/44 A 2,025,000 1,460,599
1,460,599
Missouri (3.8%)
Kansas City, Indl. Dev. Auth. Arpt. Special Oblig. Rev. Bonds
5.00%, 3/1/54 A2 4,455,000 4,676,695
5.00%, 3/1/35 A2 5,925,000 6,438,801
AGM, 4.00%, 3/1/57 AA 2,000,000 1,945,806
St. Louis, Muni. Fin. Corp. Rev. Bonds, AGM, 5.00%, 10/1/45 AA 2,000,000 2,233,629
15,294,931
Nevada (1.3%)
North Las Vegas, G.O. Bonds, AGM, 4.00%, 6/1/34 AA 3,600,000 3,814,624
Sparks, Tourism Impt. Dist. No. 1 144A Rev. Bonds, Ser. A
2.75%, 6/15/28 Ba2 1,200,000 1,102,913
2.50%, 6/15/24 Ba2 220,000 214,803
5,132,340
New Hampshire (2.6%)
National Fin. Auth. Rev. Bonds, (Caritas Acquisitions VII, LLC), Ser. A
4.50%, 8/15/55 BBB/P 2,540,000 2,301,484
4.25%, 8/15/46 BBB/P 1,210,000 1,085,420
4.125%, 8/15/40 BBB/P 1,070,000 979,839
National Fin. Auth. Hosp. Rev. Bonds, (St. Luke's Hosp. Oblig. Group)
4.00%, 8/15/40 A3 1,040,000 1,050,908
4.00%, 8/15/37 A3 850,000 864,261
NH State Hlth. & Ed. Fac. Auth. Rev. Bonds
(Catholic Med. Ctr.), 5.00%, 7/1/44 BBB+ 1,000,000 1,043,337
(Elliot Hosp.), 5.00%, 10/1/38 A3 500,000 524,614
(Southern NH Med. Ctr.), 5.00%, 10/1/37 A- 2,500,000 2,627,292
10,477,155
New Jersey (5.1%)
NJ State Econ. Dev. Auth. Rev. Bonds
(NYNJ Link Borrower, LLC), 5.375%, 1/1/43 BBB+ 500,000 510,671
Ser. WW, 5.25%, 6/15/32 (Prerefunded 6/15/25) A3 1,500,000 1,645,653
Ser. EEE, 5.00%, 6/15/48 A3 3,000,000 3,193,184
Ser. AAA, 5.00%, 6/15/36 A3 750,000 794,895
(Biomedical Research), Ser. A, 5.00%, 7/15/29 A3 400,000 430,458
NJ State Econ. Dev. Auth. Special Fac. Rev. Bonds, (Port Newark Container Term., LLC), 5.00%, 10/1/37 Baa2 2,000,000 2,106,677
NJ State Hlth. Care Fac. Fin. Auth. Rev. Bonds, (St. Peter's U. Hosp.), 5.75%, 7/1/37 Baa3 1,470,000 1,472,077
NJ State Trans. Trust Fund Auth. Rev. Bonds
Ser. AA, 5.00%, 6/15/38 A3 1,225,000 1,320,975
Ser. AA, 5.00%, 6/15/37 A3 600,000 662,465
Ser. A, 5.00%, 12/15/36 A3 1,000,000 1,082,050
Ser. A, 5.00%, 12/15/34 A3 4,920,000 5,365,700
(Federal Hwy. Reimbursement Notes), 5.00%, 6/15/30 A+ 1,900,000 2,058,219
20,643,024
New Mexico (0.6%)
Sante Fe, Retirement Fac. Rev. Bonds
(El Castillo Retirement Residences), Ser. A, 5.00%, 5/15/44 BB+/F 975,000 931,328
(El Castillo Retirement Res.), 5.00%, 5/15/42 BB+/F 1,460,000 1,387,714
2,319,042
New York (17.2%)
Metro. Trans. Auth. Rev. Bonds
(Green Bond), Ser. C-1, 5.00%, 11/15/50 A3 1,500,000 1,576,967
Ser. C-1, 4.00%, 11/15/35 A3 1,000,000 1,003,544
NY City, Transitional Fin. Auth. Rev. Bonds
Ser. C-1, 5.00%, 5/1/41 AAA 1,000,000 1,120,734
Ser. F-1, 5.00%, 2/1/40 AAA 4,920,000 5,609,555
(Future Tax), Ser. C-1, 4.00%, 5/1/40 AAA 500,000 512,300
(Future Tax), Ser. C-1, 4.00%, 5/1/40(T) AAA 11,825,000 12,107,381
4.00%, 11/1/38 AAA 550,000 567,466
4.00%, 5/1/38 AAA 700,000 722,229
NY State Dorm. Auth. Personal Income Tax Rev. Bonds
Ser. A, 5.00%, 3/15/46(T) AA+ 5,500,000 6,163,465
Ser. D, 4.00%, 2/15/47 Aa1 2,200,000 2,217,968
Ser. A, 4.00%, 3/15/44 Aa1 2,550,000 2,587,300
Ser. D, 4.00%, 2/15/40 Aa1 1,500,000 1,524,281
Ser. D, 4.00%, 2/15/39 Aa1 1,200,000 1,223,788
NY State Dorm. Auth. Sales Tax Rev. Bonds, Ser. A, Group C, 5.00%, 3/15/42(T) AA+ 10,845,000 11,812,699
NY State Liberty Dev. Corp. 144A Rev. Bonds, (3 World Trade Ctr., LLC), Class 1-3, 5.00%, 11/15/44 BB-/P 2,000,000 2,013,789
NY State Thruway Auth. Personal Income Tax Rev. Bonds, Ser. C, 5.00%, 03/15/54(T) AA+ 5,500,000 6,183,705
NY State Thruway Auth. Rev. Bonds, (Green Bonds-Bidding Group 2), Ser. C, 4.125%, 3/15/56 AA+ 5,500,000 5,516,477
NY State Trans. Special Fac. Dev. Corp. Rev. Bonds
(Laguardia Arpt. Term. B Redev. Program), Ser. A, 5.00%, 7/1/41 Baa3 1,000,000 1,032,677
(Delta Air Lines, Inc.), 5.00%, 10/1/40 Baa3 2,000,000 2,084,054
Port Auth. of NY & NJ Rev. Bonds, Ser. 207, 5.00%, 9/15/31 Aa3 3,150,000 3,462,202
69,042,581
North Carolina (0.8%)
NC State Cap. Fac. Fin. Agcy. Edl. Fac. Rev. Bonds, (High Point U.), 4.00%, 5/1/34 A- 900,000 932,475
NC State Med. Care Comm. Hlth. Care Fac. Rev. Bonds, (Lutheran Svcs. for the Aging, Inc. Oblig. Group), 4.00%, 3/1/51 BB/P 2,250,000 1,766,432
NC State Med. Care Comm. Retirement Fac. Rev. Bonds, (Maryfield, Inc. Oblig. Group), 5.00%, 10/1/45 BB/P 500,000 495,227
3,194,134
Ohio (10.2%)
Akron, Income Tax Rev. Bonds
4.00%, 12/1/37 AA- 525,000 549,261
4.00%, 12/1/36 AA- 655,000 687,176
4.00%, 12/1/35 AA- 1,260,000 1,326,011
Buckeye, Tobacco Settlement Fin. Auth. Rev. Bonds, Ser. B-2, Class 2, 5.00%, 6/1/55 BB/P 5,075,000 5,074,988
Cleveland-Cuyahoga Cnty., Port Auth. Cultural Fac. Rev. Bonds, (Playhouse Square Foundation), 5.50%, 12/1/53 BB+ 500,000 522,762
Franklin Cnty., Hosp. Fac. Rev. Bonds, (Nationwide Children's Hosp.), Ser. A, 4.00%, 11/1/44 Aa2 2,050,000 2,038,373
Northeast Ohio Regl. Swr. Dist. Rev. Bonds, U.S. Govt. Coll., 5.00%, 11/15/44 (Prerefunded 11/15/24)(T) Aa1 10,000,000 10,743,700
OH State Higher Edl. Fac. Comm. Rev. Bonds
(Ashtabula Cnty. Med. Ctr.), 5.25%, 1/1/52 BBB+/F 1,000,000 1,067,436
(Ashtabula Cnty. Med. Ctr.), 5.25%, 1/1/47 BBB+/F 1,750,000 1,876,993
(Kenyon College), 5.00%, 7/1/36(WIS) A2 1,500,000 1,630,677
(John Carroll U.), 4.00%, 10/1/47 Baa1 3,500,000 3,363,418
(Kenyon College 2020), 4.00%, 7/1/44 A2 3,555,000 3,484,389
OH State Private Activity Rev. Bonds, (Portsmouth Bypass), AGM, 5.00%, 12/31/35 AA 1,125,000 1,188,847
OH State Tpk. Comm. Rev. Bonds
5.00%, 2/15/39(WIS) Aa3 1,500,000 1,753,319
5.00%, 2/15/33(WIS) Aa3 2,195,000 2,645,995
Scioto Cnty., Hosp. Rev. Bonds, (Southern OH Med. Ctr.)
5.00%, 2/15/33 A3 605,000 635,930
5.00%, 2/15/32 A3 745,000 785,349
Southeastern OH Port Auth. Hosp. Fac. Rev. Bonds
5.75%, 12/1/32 B+/F 625,000 629,099
(Memorial Hlth. Syst. Oblig. Group), 5.50%, 12/1/43 B+/F 120,000 122,731
Warren Cnty., Hlth. Care Fac. Rev. Bonds, (Otterbein Homes Oblig. Group)
5.00%, 7/1/33 A 500,000 517,991
5.00%, 7/1/32 A 250,000 259,340
40,903,785
Oregon (1.1%)
Clackamas Cnty., Hosp. Fac. Auth. Rev. Bonds, (Rose Villa, Inc.), Ser. A, 5.25%, 11/15/50 BB/P 1,000,000 1,002,661
Keizer, Special Assmt. Bonds, (Keizer Station), Ser. A, 5.20%, 6/1/31 Aa3 1,135,000 1,138,118
Multnomah Cnty., Hosp. Fac. Auth. Rev. Bonds, (Terwilliger Plaza, Inc.), 5.00%, 12/1/36 BB+/F 650,000 666,733
Salem, Hosp. Fac. Auth. Rev. Bonds, (Salem Hlth.), Ser. A, 5.00%, 5/15/33 A+ 1,500,000 1,604,359
4,411,871
Pennsylvania (5.7%)
Allegheny Cnty., Arpt. Auth. Rev. Bonds, Ser. A
5.00%, 1/1/56 AA 575,000 610,312
5.00%, 1/1/51 AA 6,620,000 7,071,687
5.00%, 1/1/35 AA 3,000,000 3,324,070
4.00%, 1/1/56 AA 1,750,000 1,687,977
Cumberland Cnty., Muni. Auth. Rev. Bonds, (Diakon Lutheran Social Ministries)
5.00%, 1/1/32 BBB+/F 200,000 209,044
5.00%, 1/1/31 BBB+/F 1,000,000 1,046,203
Lancaster Cnty., Hosp. & Hlth. Ctr. Auth. Rev. Bonds, (St. Anne's Retirement Cmnty.)
5.00%, 3/1/50 BB+/F 500,000 484,703
5.00%, 3/1/40 BB+/F 500,000 497,665
Lancaster Cnty., Hosp. Auth. Hlth. Care Fac. Rev. Bonds, (Moravian Manors, Inc.), Ser. A, 5.00%, 6/15/44 BB+/F 1,000,000 1,006,295
PA State Econ. Dev. Fin. Auth. Exempt Fac. Rev. Bonds, (Amtrak), Ser. A, 5.00%, 11/1/32 A1 1,000,000 1,005,241
PA State Tpk. Comm. Rev. Bonds, 4.90%, 12/1/44 A1 4,385,000 4,609,954
Philadelphia, Gas Wks. Rev. Bonds, 5.00%, 8/1/32 A 1,000,000 1,071,864
Westmoreland Cnty., Muni. Auth. Rev. Bonds, BAM, 5.00%, 8/15/27 AA 450,000 491,394
23,116,409
Rhode Island (0.7%)
Tobacco Settlement Fin. Corp. Rev. Bonds, Ser. B, 5.00%, 6/1/50 BBB-/P 2,750,000 2,812,403
2,812,403
South Carolina (0.6%)
SC State Pub. Svcs. Auth. Rev. Bonds
Ser. B, 5.00%, 12/1/56 A2 210,000 218,703
Ser. A, 5.00%, 12/1/36 A2 2,000,000 2,103,479
2,322,182
South Dakota (0.2%)
Lincoln Cnty., Econ. Dev. Rev. Bonds, (Augustana College Assn. (The)), 4.00%, 8/1/51 BBB- 1,000,000 884,723
884,723
Tennessee (0.5%)
Metro. Govt. Nashville & Davidson Cnty., Hlth. & Edl. Fac. Board Rev. Bonds, (Blakeford at Green Hills), Ser. A, 4.00%, 11/1/55 BBB-/F 2,250,000 1,903,015
1,903,015
Texas (9.9%)
Arlington, Higher Ed. Fin. Corp. Rev. Bonds, (Uplift Ed.), Ser. A
5.00%, 12/1/36 BBB- 500,000 524,901
PSFG, 5.00%, 12/1/35 AAA 500,000 550,119
Austin-Bergstrom Landhost Enterprises, Inc. Rev. Bonds
5.00%, 10/1/35 A 1,045,000 1,104,111
5.00%, 10/1/34 A 530,000 561,155
Clifton, Higher Ed. Fin. Corp. Rev. Bonds
(Intl. Leadership), Ser. D, 6.125%, 8/15/48 BB-/P 1,150,000 1,183,992
(IDEA Pub. Schools), 5.00%, 8/15/28 A- 300,000 326,274
(IDEA Pub. Schools), Ser. T, PSFG, 4.00%, 8/15/41 AAA 1,400,000 1,448,337
(IDEA Pub. Schools), Ser. T, PSFG, 4.00%, 8/15/37 AAA 1,000,000 1,062,807
Harris Cnty., Cultural Ed. Fac. Fin. Corp. Rev. Bonds
(YMCA of the Greater Houston Area), Ser. A, 5.00%, 6/1/38 Ba1 1,500,000 1,501,468
(Brazos Presbyterian Homes, Inc.), 5.00%, 1/1/37 BB+/F 1,000,000 1,000,740
(YMCA of the Greater Houston Area), Ser. A, 5.00%, 6/1/33 Ba1 800,000 801,687
Love Field, Gen. Arpt. Modernization Corp. Rev. Bonds, 5.00%, 11/1/35 A1 1,000,000 1,052,354
Lower CO River Auth. Rev. Bonds, AGM, 5.00%, 5/15/39 AA 1,730,000 1,980,176
Matagorda Cnty., Poll. Control Rev. Bonds, (Dist. No. 1), Ser. A, AMBAC, 4.40%, 5/1/30 A- 1,500,000 1,603,827
New Hope, Cultural Ed. Fac. Fin. Corp. Rev. Bonds
(Wesleyan Homes, Inc.), 5.50%, 1/1/43 BB-/P 500,000 473,581
(TX Woman's U. CHF-Collegiate Hsg. Dining), Ser. B-1, AGM, 4.125%, 7/1/53 AA 1,000,000 1,004,695
(Woman's U.-Collegiate Hsg. Denton, LLC), Ser. A-1, AGM, 4.125%, 7/1/53 AA 1,000,000 1,004,695
(Children's Hlth. Syst. of TX), Ser. A, 4.00%, 8/15/34 Aa3 600,000 608,692
North TX, Tollway Auth. Rev. Bonds, (1st Tier), Ser. I, 6.50%, 1/1/43 (Prerefunded 1/1/25) A1 4,000,000 4,445,855
Tarrant Cnty., Cultural Ed. Fin. Corp. Retirement Fac. Rev. Bonds, (Buckner Retirement Svcs.), Ser. B, 5.00%, 11/15/40 A/F 2,000,000 2,108,460
TX Private Activity Surface Trans. Corp. Rev. Bonds, (Segment 3C), 5.00%, 6/30/58 Baa3 3,000,000 3,086,335
TX State Private Activity Bond Surface Trans. Corp. Rev. Bonds, (Blueridge Trans. Group, LLC (SH 288 Toll Lane)), 5.00%, 12/31/50 Baa2 2,000,000 2,024,741
TX State Transportation Commission G.O. Bonds, 5.00% 10/1/44 (Prerefunded 10/1/24)(T) AAA 9,855,000 10,529,081
39,988,083
Utah (2.0%)
Infrastructure Agcy. Telecomm. Rev. Bonds, 5.00%, 10/15/37 BBB-/F 1,200,000 1,257,730
Mida Mountain Village Pub. Infrastructure Dist. 144A Special Assmt. Bonds, (Mountain Village Assmt. Area No. 2), 4.00%, 8/1/50 B/P 1,625,000 1,336,586
Utah State Bldg. Ownership Auth. Lease Rev. Bonds, (Master Lease)
5.00%, 5/15/42 Aa1 1,840,000 2,102,941
5.00%, 5/15/40 Aa1 2,815,000 3,247,636
7,944,893
Virginia (2.3%)
Fairfax Cnty., Econ. Dev. Auth. Res. Care Fac. Rev. Bonds, (Goodwin House, Inc.), Ser. A, 5.00%, 10/1/42 (Prerefunded 10/1/24) AAA/P 425,000 460,918
Small Bus. Fin. Auth. Private Activity Rev. Bonds, (Transform 66-P3), 5.00%, 12/31/52 Baa3 4,250,000 4,408,854
VA State Small Bus. Fin. Auth. Rev. Bonds
(95 Express Lanes, LLC), 4.00%, 1/1/48 BBB- 3,000,000 2,845,505
(Elizabeth River Crossings OpCo, LLC), 4.00%, 1/1/40 BBB 750,000 749,854
(Elizabeth River Crossings OpCo, LLC), 4.00%, 1/1/36 BBB 630,000 640,849
9,105,980
Washington (2.5%)
Bellevue, G.O. Bonds
4.00%, 12/1/43 Aaa 1,000,000 1,029,974
4.00%, 12/1/40 Aaa 1,250,000 1,307,327
4.00%, 12/1/35 Aaa 1,000,000 1,081,848
King Cnty., Public Hosp. Dist. No. 1 G.O. Bonds, (Valley Med. Ctr.), 5.00%, 12/1/38 A2 2,365,000 2,572,914
Port of Seattle, Rev. Bonds, Ser. C, 5.00%, 4/1/40 AA- 875,000 914,862
Tobacco Settlement Auth. of WA Rev. Bonds, 5.25%, 6/1/32 A- 485,000 485,645
WA State Hsg. Fin. Comm. Rev. Bonds, (Social Certif.), Ser. A-1, 3.50%, 12/20/35 BBB+ 2,659,953 2,526,701
9,919,271
Wisconsin (2.6%)
Pub. Fin. Auth. Arpt. Fac. Rev. Bonds, (Sr. Oblig. Group), 5.25%, 7/1/28 BBB+ 350,000 350,591
Pub. Fin. Auth. Conference Ctr. & Hotel Rev. Bonds, (U. of NC Charlotte Foundation), Ser. A, 4.00%, 9/1/56 BB+/P 1,000,000 790,922
Pub. Fin. Auth. Student Hsg. Fac. Rev. Bonds, (Appalachian State U.), Ser. A, AGM
4.00%, 7/1/50 AA 700,000 702,067
4.00%, 7/1/45 AA 600,000 604,327
4.00%, 7/1/40 AA 500,000 509,188
4.00%, 7/1/38 AA 435,000 444,607
4.00%, 7/1/36 AA 340,000 349,988
4.00%, 7/1/34 AA 300,000 310,769
WI Pub. Fin. Auth. Hotel Rev. Bonds, (Grand Hyatt), 5.00%, 2/1/62 BBB- 1,700,000 1,777,397
WI State Hlth. & Edl. Fac. Auth. Rev. Bonds
(Hmong American Peace Academy, Ltd.), 5.00%, 3/15/50 BBB 1,000,000 1,023,929
(Three Pillars Sr. Living), 5.00%, 8/15/33 (Prerefunded 8/15/23) AAA/P 430,000 445,174
(Advocate Aurora Hlth. Oblig. Group), Ser. A, 4.00%, 8/15/35 AA 3,000,000 3,077,863
WI State Pub. Fin. Auth Sr. Living 144A Rev. Bonds, (Mary's Woods at Marylhurst), Ser. A, 5.25%, 5/15/37 BB/F 250,000 249,724
10,636,546
Total municipal bonds and notes (cost $602,251,140) $594,696,027








SHORT-TERM INVESTMENTS (3.8%)(a)
        Principal amount/shares Value
Putnam Short Term Investment Fund Class P 1.93%(AFF) Shares 15,152,697 $15,152,697
U.S. Treasury Bills 2.114%, 9/6/22(SEG) $100,000 99,791
U.S. Treasury Bills 1.132%, 8/4/22(SEG) 200,000 199,968
Total short-term investments (cost $15,452,470) $15,452,456
TOTAL INVESTMENTS
Total investments (cost $617,703,610) $610,148,483








FUTURES CONTRACTS OUTSTANDING at 7/31/22 (Unaudited)
    Number of contracts Notional
amount		 Value Expiration date Unrealized
appreciation/
(depreciation)
U.S. Treasury Bond Ultra 30 yr (Short) 33 $5,224,313 $5,224,313 Sep-22 $(5,746)
Unrealized appreciation —
Unrealized (depreciation) (5,746)
Total $(5,746)










Notes to the fund's portfolio
Unless noted otherwise, the notes to the fund's portfolio are for the close of the fund's reporting period, which ran from May 1, 2022 through July 31, 2022 (the reporting period). Within the following notes to the portfolio, references to "Putnam Management" represent Putnam Investment Management, LLC, the fund's manager, an indirect wholly-owned subsidiary of Putnam Investments, LLC, references to "ASC 820" represent Accounting Standards Codification 820 Fair Value Measurements and Disclosures and references to "OTC", if any, represent over-the-counter.
(a) Percentages indicated are based on net assets of $402,279,737.
(RAT) The Moody's, Standard & Poor's or Fitch ratings indicated are believed to be the most recent ratings available at the close of the reporting period for the securities listed. Ratings are generally ascribed to securities at the time of issuance. While the agencies may from time to time revise such ratings, they undertake no obligation to do so, and the ratings do not necessarily represent what the agencies would ascribe to these securities at the close of the reporting period. Securities rated by Fitch are indicated by "/F." Securities rated by Putnam are indicated by "/P." The Putnam rating categories are comparable to the Standard & Poor's classifications. If a security is insured, it will usually be rated by the ratings organizations based on the financial strength of the insurer.
(STP) The interest rate and date shown parenthetically represent the new interest rate to be paid and the date the fund will begin accruing interest at this rate.
(AFF) Affiliated company. For investments in Putnam Short Term Investment Fund, the rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period. Transactions during the period with any company which is under common ownership or control were as follows:
Name of affiliate Fair value
as of
4/30/22		 Purchase
cost		 Sale
proceeds		 Investment
income		 Shares outstanding
and fair
value as of
7/31/22
Short-term investments
Putnam Short Term Investment Fund* $12,668,821 $65,752,351 $63,268,475 $26,169 $15,152,697
Total Short-term investments $12,668,821 $65,752,351 $63,268,475 $26,169 $15,152,697
* Management fees charged to Putnam Short Term Investment Fund have been waived by Putnam Management. There were no realized or unrealized gains or losses during the period.
(SEG) This security, in part or in entirety, was pledged and segregated with the broker to cover margin requirements for futures contracts at the close of the reporting period. Collateral at period end totaled $222,721.
(FWC) Forward commitment, in part or in entirety.
(WIS) When-issued security.
(T) Underlying security in a tender option bond transaction. This security has been segregated as collateral for financing transactions.
At the close of the reporting period, the fund maintained liquid assets totaling $105,779,203 to cover tender option bonds and the settlement of certain securities.
Unless otherwise noted, the rates quoted in Short-term investments security descriptions represent the weighted average yield to maturity.
144A after the name of an issuer represents securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
On Mandatory Put Bonds, the rates shown are the current interest rates at the close of the reporting period and the dates shown represent the next mandatory put dates. Rates are set by remarketing agents and may take into consideration market supply and demand, credit quality and the current SIFMA Municipal Swap Index, 1 Month US LIBOR or 3 Month US LIBOR rates, which were 1.33%, 2.36% and 2.79%, respectively, as of the close of the reporting period.
The dates shown parenthetically on prerefunded bonds represent the next prerefunding dates.
The dates shown on debt obligations are the original maturity dates.
The fund had the following sector concentrations greater than 10% at the close of the reporting period (as a percentage of net assets):
Healthcare 25.4%
Tax bonds 21.1
Transportation 21.2
State debt 16.4
Local debt 15.3
Education 13.5
Utilities
Security valuation: Portfolio securities and other investments are valued using policies and procedures adopted by the Board of Trustees. The Trustees have formed a Pricing Committee to oversee the implementation of these procedures and have delegated responsibility for valuing the fund’s assets in accordance with these procedures to Putnam Management. Putnam Management has established an internal Valuation Committee that is responsible for making fair value determinations, evaluating the effectiveness of the pricing policies of the fund and reporting to the Pricing Committee.
Tax-exempt bonds and notes are generally valued on the basis of valuations provided by an independent pricing service approved by the Trustees. Such services use information with respect to transactions in bonds, quotations from bond dealers, market transactions in comparable securities and various relationships between securities in determining value. These securities will generally be categorized as Level 2.
Investments in open-end investment companies (excluding exchange-traded funds), if any, which can be classified as Level 1 or Level 2 securities, are valued based on their net asset value. The net asset value of such investment companies equals the total value of their assets less their liabilities and divided by the number of their outstanding shares.
Certain investments, including certain restricted and illiquid securities and derivatives, are also valued at fair value following procedures approved by the Trustees. To assess the continuing appropriateness of fair valuations, the Valuation Committee reviews and affirms the reasonableness of such valuations on a regular basis after considering all relevant information that is reasonably available. Such valuations and procedures are reviewed periodically by the Trustees. These valuations consider such factors as significant market or specific security events such as interest rate or credit quality changes, various relationships with other securities, discount rates, U.S. Treasury, U.S. swap and credit yields, index levels, convexity exposures, recovery rates, sales and other multiples and resale restrictions. These securities are classified as Level 2 or as Level 3 depending on the priority of the significant inputs. The fair value of securities is generally determined as the amount that the fund could reasonably expect to realize from an orderly disposition of such securities over a reasonable period of time. By its nature, a fair value price is a good faith estimate of the value of a security in a current sale and does not reflect an actual market price, which may be different by a material amount.
Futures contracts: The fund used futures contracts for hedging treasury term structure risk and for yield curve positioning.
The potential risk to the fund is that the change in value of futures contracts may not correspond to the change in value of the hedged instruments. In addition, losses may arise from changes in the value of the underlying instruments, if there is an illiquid secondary market for the contracts, if interest or exchange rates move unexpectedly or if the counterparty to the contract is unable to perform. With futures, there is minimal counterparty credit risk to the fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. When the contract is closed, the fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.
Futures contracts are valued at the quoted daily settlement prices established by the exchange on which they trade. The fund and the broker agree to exchange an amount of cash equal to the daily fluctuation in the value of the futures contract. Such receipts or payments are known as “variation margin”.
For the fund's average number of futures contracts, see the appropriate table at the end of these footnotes.
Master agreements: The fund is a party to ISDA (International Swaps and Derivatives Association, Inc.) Master Agreements (Master Agreements) with certain counterparties that govern OTC derivative and foreign exchange contracts entered into from time to time. The Master Agreements may contain provisions regarding, among other things, the parties’ general obligations, representations, agreements, collateral requirements, events of default and early termination. With respect to certain counterparties, in accordance with the terms of the Master Agreements, collateral posted to the fund is held in a segregated account by the fund’s custodian and, with respect to those amounts which can be sold or repledged, is presented in the fund’s portfolio.
Collateral pledged by the fund is segregated by the fund’s custodian and identified in the fund’s portfolio. Collateral can be in the form of cash or debt securities issued by the U.S. Government or related agencies or other securities as agreed to by the fund and the applicable counterparty. Collateral requirements are determined based on the fund’s net position with each counterparty.
Termination events applicable to the fund may occur upon a decline in the fund’s net assets below a specified threshold over a certain period of time. Termination events applicable to counterparties may occur upon a decline in the counterparty’s long-term and short-term credit ratings below a specified level. In each case, upon occurrence, the other party may elect to terminate early and cause settlement of all derivative and foreign exchange contracts outstanding, including the payment of any losses and costs resulting from such early termination, as reasonably determined by the terminating party. Any decision by one or more of the fund’s counterparties to elect early termination could impact the fund’s future derivative activity.
At the close of the reporting period, the fund did not have a net liability position on open derivative contracts subject to the Master Agreements.
Tender option bond transactions: The fund may participate in transactions whereby a fixed-rate bond is transferred to a tender option bond trust (TOB trust) sponsored by a broker. The TOB trust funds the purchase of the fixed rate bonds by issuing floating-rate bonds issued to third parties and allowing the fund to retain the residual interest in the TOB trust’s assets and cash flows, which are in the form of inverse floating rate bonds. The inverse floating rate bonds held by the fund give the fund the right to (1) cause the holders of the floating rate bonds to tender their notes at par, and (2) to have the fixed-rate bond held by the TOB trust transferred to the fund, causing the TOB trust to collapse. The fund accounts for the transfer of the fixed-rate bond to the TOB trust as a secured borrowing by including the fixed-rate bond in The fund’s portfolio and including the floating rate bond as a liability in the Statement of assets and liabilities. At the close of the reporting period, the fund’s investments with a value of $90,573,432 were held by the TOB trust and served as collateral for $59,571,942 in floating-rate bonds outstanding. During the reporting period, the fund incurred interest expense of $115,886 for these investments based on an average interest rate of 0.86%.








ASC 820 establishes a three-level hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of the fund's investments. The three levels are defined as follows:
Level 1: Valuations based on quoted prices for identical securities in active markets.
Level 2: Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.
Level 3: Valuations based on inputs that are unobservable and significant to the fair value measurement.
The following is a summary of the inputs used to value the fund's net assets as of the close of the reporting period:
  Valuation inputs
Investments in securities: Level 1 Level 2 Level 3
Municipal bonds and notes $— $594,696,027 $—
Short-term investments — 15,452,456 —
Totals by level $— $610,148,483 $—
  Valuation inputs
Other financial instruments: Level 1 Level 2 Level 3
Futures contracts $(5,746) $— $—
Totals by level $(5,746) $— $—
The volume of activity for the reporting period for any derivative type that was held at the close of the period is listed below and was based on an average of the holdings of that derivative at the end of each fiscal quarter in the reporting period:
Futures contracts (number of contracts) 30
For additional information regarding the fund please see the fund's most recent annual or semiannual shareholder report filed on the Securities and Exchange Commission's Web site, www.sec.gov, or visit Putnam's Individual Investor Web site at www.putnaminvestments.com