M&A - PUTNAM PENNSYLVANIA TAX EXEMPT INCOME FUND

Form Type: 497K

Filing Date: 2025-07-02

Corporate Action: Merger

Type: New

Accession Number: 000119312525154977

Filing Summary: On July 2, 2025, Putnam Pennsylvania Tax Exempt Income Fund, along with other mutual funds listed, will undergo a reorganization approved by the Board of Trustees, wherein each fund will convert into an exchange-traded fund (ETF). This reorganization involves transferring the assets of each Mutual Fund to the corresponding ETF and distributing ETF shares to the shareholders as complete liquidation of the Mutual Fund. The Group One Funds are scheduled to complete this transition on or about October 24, 2025, while the Group Two Funds, including Putnam Pennsylvania Tax Exempt Income Fund, are expected to reorganize around November 7, 2025. Importantly, all classes of shares except for Class R6 will be inaccessible to new investors starting August 22, 2025, and all classes, including Class R6, will eventually be closed to purchases by all investors by September 12, 2025. Shareholders also have an opportunity to redeem their mutual fund shares or exchange them before the reorganization deadline dates, which may have tax implications. The final steps of the reorganization will include the closure of transactions by set deadlines, after which ETF shares will be exchanged as outlined or liquidated if accounts cannot accept ETF shares.

Form Type: 497K

Filing Date: 2025-05-19

Corporate Action: Merger

Type: New

Accession Number: 000092881625000636

Filing Summary: On May 19, 2025, it was announced that the Putnam Pennsylvania Tax Exempt Income Fund, along with other Mutual Funds listed in Schedule A, will be converted into exchange traded funds (ETFs). This reorganization is expected to occur in the fourth quarter of 2025 or the first quarter of 2026, and shareholders will automatically receive ETF shares without needing to vote. The Board of Trustees approved the plan, asserting that it is in the best interest of shareholders and will not dilute their interests. Existing Mutual Fund assets will be transferred to corresponding ETFs in exchange for ETF shares, which will then be distributed to Mutual Fund shareholders. Franklin Advisers, the investment adviser, highlighted potential benefits including lower expenses and greater trading flexibility. Share class consolidations will occur prior to the conversion, and shareholders holding Mutual Fund shares in incompatible accounts must take actions to receive ETF shares. The conversion is anticipated to qualify as tax-free for federal income tax purposes, aside from any cash received from the redemption of fractional shares. Additionally, effective July 19, 2025, front-end sales charges and contingent deferred sales charges will be waived for Mutual Fund purchases and redemptions, respectively.