M&A - PUTNAM PENNSYLVANIA TAX EXEMPT INCOME FUND

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.