M&A - PUTNAM CALIFORNIA TAX EXEMPT INCOME FUND

Form Type: 497

Filing Date: 2025-07-02

Corporate Action: Merger

Type: New

Accession Number: 000119312525154970

Filing Summary: On July 2, 2025, it was announced that the Board of Trustees of the Putnam Funds approved the conversion of various mutual funds, including the Putnam California Tax Exempt Income Fund, into exchange-traded funds (ETFs). This reorganization will involve transferring the mutual fund's assets into the corresponding ETF and distributing ETF shares to shareholders in lieu of mutual fund shares. The Putnam California Tax Exempt Income Fund will be reorganized with the Franklin California Municipal Income ETF. The conversion is expected to occur on or around October 24, 2025. Key action items for shareholders include the closure of certain mutual fund shares to new investors, the waiver of front-end sales charges, and the requirement to move mutual fund shares into ETF-acceptable accounts for participation in the reorganization. Important dates for actions related to the reorganization and conditions for share exchanges are outlined, with tax implications noted for any redemptions or conversions.

Form Type: 497K

Filing Date: 2025-07-02

Corporate Action: Merger

Type: New

Accession Number: 000119312525154973

Filing Summary: On July 2, 2025, the Board of Trustees of Putnam Funds approved the conversion of several mutual funds into exchange-traded funds (ETFs). This includes the Putnam California Tax Exempt Income Fund being reorganized into the Franklin California Municipal Income ETF. The anticipated timeline for completion is October 24, 2025, for Group One Funds, including the Putnam California Tax Exempt Income Fund, and November 7, 2025, for Group Two Funds. Shareholders will receive ETF shares in proportion to their existing holdings. Important deadlines for transactions, including closing to new purchases and the last dates for share redemptions and exchanges, are provided. Shareholders are advised to consult their tax advisors regarding potential tax implications of these actions. Additionally, options are given for shareholders who do not wish to receive ETF shares, including the ability to exchange for shares of another mutual fund or to redeem their shares prior to the reorganization.

Form Type: 497

Filing Date: 2025-05-19

Corporate Action: Merger

Type: New

Accession Number: 000092881625000624

Filing Summary: The document is a prospectus supplement regarding the proposed conversion of various Mutual Funds managed by Putnam into Exchange Traded Funds (ETFs). This conversion is expected to take place in the fourth quarter of 2025 or the first quarter of 2026. Existing shareholders will automatically have their Mutual Fund shares converted into ETF shares without needing to vote. The reorganization involves the transfer of assets from each Mutual Fund to corresponding ETFs, with shareholders receiving ETF shares in a complete liquidation of the Mutual Funds. This process is anticipated to be tax-free for shareholders, although any cash received for fractional shares could result in a taxable event. Franklin Advisers suggests potential benefits for shareholders, including lower expenses and improved trading flexibility. A Share Class Consolidation will also occur before the reorganization. Shareholders holding Mutual Fund shares in accounts that cannot accept ETF shares must take certain actions to receive their ETF shares. Furthermore, effective July 19, 2025, both front-end sales charges for purchasing Mutual Fund shares and contingent deferred sales charges for redeeming them will be waived. The document emphasizes that the management and investment strategies of the ETFs will remain similar to those of the corresponding Mutual Funds.

Form Type: 497K

Filing Date: 2025-05-19

Corporate Action: Merger

Type: New

Accession Number: 000092881625000626

Filing Summary: On May 19, 2025, a prospectus supplement was issued announcing the proposed conversion of several Mutual Funds listed in Schedule A, including the Putnam California Tax Exempt Income Fund, into exchange traded funds (ETFs). This conversion is expected to occur in or around the fourth quarter of 2025 or the first quarter of 2026 and will not require shareholder approval. Existing Mutual Fund shareholders will have their shares converted to ETF shares automatically if held in eligible brokerage accounts, while others will need to take additional actions to receive their ETF shares. The Board of Trustees believes this reorganization will provide advantages such as lower net expenses and enhanced trading flexibility. Following the reorganization, shareholders will receive ETF shares equivalent to their Mutual Fund shares based on their net asset value as of the conversion date. Additionally, there will be a consolidation of share classes prior to the conversion, and effective July 19, 2025, sales charges on Mutual Fund shares will be waived.