M&A - PUTNAM MASSACHUSETTS TAX EXEMPT INCOME FUND/MA/
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.
Additional details:
Share Class Consolidation: Before the reorganization, each class of shares of the Mutual Funds, except class R6 shares, will consolidate into class R6 shares without any sales charge.
Conversion Details: Upon conversion, shareholders will receive ETF shares equivalent to the net asset value of their Mutual Fund shares.
Anticipated Tax Status: The reorganization is anticipated to qualify as a tax-free reorganization for federal income tax purposes.
Waiver Sales Charges: Effective July 19, 2025, front-end sales charges on purchases and contingent deferred sales charges on redemptions for Mutual Fund shares will be waived.
Portfolio Management: ETFs will be managed in the same manner as the corresponding Mutual Funds, with unchanged investment goals and teams.
Comments
No comments yet. Be the first to comment!