M&A - PUTNAM TAX EXEMPT INCOME FUND

Form Type: 497K

Filing Date: 2025-07-02

Corporate Action: Merger

Type: Update

Accession Number: 000119312525154976

Filing Summary: On July 2, 2025, Putnam Tax-Exempt Income Fund announced the reorganization of several mutual funds into exchange-traded funds (ETFs) as approved by the Board of Trustees on May 16, 2025. The reorganization involves transferring the assets of existing mutual funds to their corresponding ETFs in exchange for ETF shares. The Group One Funds, including Putnam California Tax Exempt Income Fund and Putnam New York Tax Exempt Income Fund, are expected to undergo this change on or about October 24, 2025, while Group Two Funds will follow on or around November 7, 2025. Key actions include the closure of shares to new investors and the waiver of front-end sales charges effective July 21, 2025. Shareholders are advised of deadlines for redeeming shares or making necessary account changes prior to the reorganization, as well as potential tax implications from the redemption of fractional shares. Shareholders who do not wish to receive ETF shares can exchange their mutual fund shares or redeem them before specified dates. Post-reorganization, shareholders will receive ETF shares equal to their previous holdings in mutual funds, and trading of these ETFs is expected to commence shortly after the reorganizations.

Form Type: 497K

Filing Date: 2025-05-19

Corporate Action: Merger

Type: New

Accession Number: 000092881625000632

Filing Summary: On May 19, 2025, it was announced that the Putnam Tax Exempt Income Fund and other funds listed in Schedule A will undergo a conversion to exchange-traded funds (ETFs) anticipated to occur in the fourth quarter of 2025 or the first quarter of 2026. Shareholders of the mutual funds will have their shares converted into shares of the corresponding ETFs without needing to vote for approval. The Board of Trustees approved this conversion, believing it serves the best interests of shareholders, providing benefits like lower expenses and increased trading flexibility. A comprehensive plan outlines the reorganization, which includes transferring mutual funds' assets to ETFs and liquidating the mutual funds in the process. Shareholders will receive ETF shares equivalent to their mutual fund shares' net asset value (NAV) and are encouraged to consult tax advisors regarding potential taxable events from share redemptions. Additionally, effective July 19, 2025, all front-end sales charges and contingent deferred sales charges for purchasing or redeeming mutual fund shares will be waived.