M&A - PUTNAM MINNESOTA TAX EXEMPT INCOME FUND
Form Type: 497K
Filing Date: 2025-05-19
Corporate Action: Merger
Type: Update
Accession Number: 000092881625000644
Filing Summary: On May 19, 2025, the Board of Trustees of the Putnam Funds approved the conversion of several Mutual Funds into exchange traded funds (ETFs) anticipated to occur in the fourth quarter of 2025 or the first quarter of 2026. This reorganization involves the transfer of Mutual Fund assets to corresponding ETFs, allowing existing shareholders to receive ETF shares without needing to vote. The benefits include lower expenses, enhanced trading flexibility, and greater transparency of portfolio holdings. Additionally, a Share Class Consolidation will be conducted prior to the conversion, and any fractional shares will be redeemed. Shareholders not holding Mutual Fund shares in appropriate brokerage accounts will face specific actions to receive ETF shares. The reorganization aims to qualify as a tax-free transition for federal income tax purposes, with potential waivers of certain sales charges effective July 19, 2025.
Additional details:
Proposed Conversion Of Funds To Etfs: The Mutual Funds will be converted into exchange traded funds.
Conversion Timeline: Anticipated to occur in or around the fourth quarter of 2025 or the first quarter of 2026.
Board Meeting Date: May 16, 2025
Benefits Of Reorganization: Multiple benefits for shareholders including lower net expenses and additional trading flexibility.
Completion Conditions: Completion of the reorganization is subject to regulatory approvals.
Shareholder Notification Date: On or around August 7, 2025, shareholders will receive a prospectus/information statement.
Share Class Consolidation: Each class of shares of the Mutual Funds will be consolidated into class R6 shares before the reorganization.
Taxation Information: The reorganization is anticipated to qualify as a tax-free reorganization.
Waiver Date: Effective July 19, 2025, any front-end sales charges will be waived.
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