M&A - PUTNAM MASSACHUSETTS TAX EXEMPT INCOME FUND/MA/

Form Type: 497K

Filing Date: 2025-07-02

Corporate Action: Merger

Type: Update

Accession Number: 000119312525154978

Filing Summary: On May 16, 2025, the Board of Trustees of Putnam Funds approved a significant reorganization of their mutual funds, converting them into exchange-traded funds (ETFs). This includes the Putnam Massachusetts Tax Exempt Income Fund which will be reorganized into the Franklin Massachusetts Municipal Income ETF. The reorganization involves transferring most assets from the current Mutual Fund to the ETF and distributing ETF shares to existing Mutual Fund shareholders, leading to the complete liquidation of the Mutual Fund. This reorganization is scheduled to occur around November 7, 2025. Prior to the reorganization, there are important action items for shareholders that include the waiver of sales charges, scheduled closures for specific share classes to new investors, and exchange options for those holding Mutual Fund shares in certain tax-advantaged accounts. Shareholders need to prepare to ensure they can receive shares of the new ETFs and consider the tax implications of these transactions, particularly if they choose to redeem their shares instead of receiving ETF shares.

Form Type: 497K

Filing Date: 2025-05-19

Corporate Action: Merger

Type: New

Accession Number: 000092881625000628

Filing Summary: This document announces the proposed conversion of the Mutual Funds into exchange-traded funds (ETFs), which is scheduled to occur around the fourth quarter of 2025 or the first quarter of 2026. Existing shareholders of the Mutual Funds will have their shares converted to ETF shares, requiring no action from them if their accounts can hold ETFs. Shareholders with accounts that cannot hold ETFs are advised on necessary actions. The conversion was approved by the Board of Trustees on May 16, 2025, with the rationale that interests of shareholders will not be diluted. The reorganization involves transferring assets of the Mutual Funds to corresponding ETFs, followed by a complete liquidation of the Mutual Funds. The document also states that the conversion is expected to be a tax-free reorganization. Additionally, it addresses a waiver of sales charges effective July 19, 2025, and provides answers to common questions regarding the conversion, highlighting benefits such as lower expenses and increased trading flexibility. Shareholders will receive further details via a prospectus/information statement by August 7, 2025.