Putnam Tax Exempt Income Fund (PTBEX) N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: (811-02675)

Exact name of registrant as specified in charter: Putnam Tax Exempt Income Fund

Address of principal executive offices: 100 Federal Street, Boston, Massachusetts 02110

Name and address of agent for service: Stephen Tate, Vice President
100 Federal Street
Boston, Massachusetts 02110

Copy to:         Bryan Chegwidden, Esq.
Ropes & Gray LLP
1211 Avenue of the Americas
New York, New York 10036

Registrant’s telephone number, including area code: (617) 292-1000

Date of fiscal year end: September 30, 2022

Date of reporting period: October 1, 2021 – March 31, 2022

Item 1. Report to Stockholders:

The following is a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Investment Company Act of 1940:

Putnam
Tax Exempt
Income Fund

Semiannual report
3 | 31 | 22

Message from the Trustees	1
About the fund	2
Interview with your fund’s portfolio manager	5
Your fund’s performance	9
Your fund’s expenses	11
Consider these risks before investing	13
Terms and definitions	14
Other information for shareholders	16
Financial statements	17

Message from the Trustees

May 11, 2022

Dear Fellow Shareholder:

Financial markets have been bumpy in recent months. Investors are weighing the risks of higher inflation, interest-rate increases by the Federal Reserve, and the global impact of Russia’s attack on Ukraine. Regional surges in Covid-19 infections are also complicating global trade.

In times like these, it’s worth remembering the benefits of staying focused on your long-term financial goals. At Putnam, professional, active investors are working for you. They are monitoring risks while looking for strong potential investments for your fund. Learn more in the interview with your fund manager(s) in the following pages.

Thank you for investing with Putnam.

Municipal bonds finance important public projects, such as schools, roads, and hospitals. Because the income from municipal bonds is generally exempt from federal income tax, these bonds can help investors keep more of the income they receive from their investment. Putnam Tax Exempt Income Fund offers an additional advantage — the flexibility to invest in municipal bonds issued by any state in the country.

Putnam Tax Exempt Income Fund takes an active investment approach.

Municipal bonds are backed by either the issuing city, town, or other government entity or by revenues collected from usage fees. The fund’s portfolio managers can select bonds from a variety of state and local governments. Because a state’s fiscal health can affect the prices of its bonds, this flexibility is a distinct advantage.

2 Tax Exempt Income Fund 

Sources: Bloomberg Index Services Limited, Putnam, as of 3/31/22. Past performance is no guarantee of future results. Yields for U.S. Treasuries, investment-grade corporates, and municipal bonds are represented by the average “yield to worst” — a calculation of the lowest possible yield generated without defaulting — of the Bloomberg U.S. Treasury Index, an unmanaged index of U.S. dollar-denominated, fixed-rate, nominal debt issued by the U.S. Treasury; the Bloomberg U.S. Corporate Bond Index, an unmanaged index of U.S. dollar-denominated, investment-grade, fixed-rate, taxable corporate bonds; and the Bloomberg Municipal Bond Index, an unmanaged index of long-term, fixed-rate, investment-grade tax-exempt bonds, respectively. You cannot invest directly in an index. Bond investments are subject to interest-rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments). Interest-rate risk is greater for longer-term bonds, and credit risk is greater for below-investment-grade bonds. Income from municipal bonds may be subject to the alternative minimum tax. Annual after-tax income is based on a 40.80% federal income tax rate. This rate reflects the Tax Cuts and Jobs Act of 2017 and includes the 3.80% Medicare surtax. The income data is based on a hypothetical $100,000 investment.

Source: Moody’s Investors Service, Annual U.S. Municipal Bond Defaults and Recoveries, Five-Year Average Cumulative Default Rates, 1970–2020 (July 2021). Most recent data available.

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Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will fluctuate, and you may have a gain or a loss when you sell your shares. Performance of class A shares assumes reinvestment of distributions and does not account for taxes. Fund returns in the bar chart do not reflect a sales charge of 4.00%; had they, returns would have been lower. See below and pages 9–10 for additional performance information. For a portion of the periods, the fund had expense limitations, without which returns would have been lower. To obtain the most recent month-end performance, visit putnam.com.

Returns for periods of less than one year are not annualized.

All Bloomberg indices are provided by Bloomberg Index Services Limited.

Lipper peer group average is provided by Lipper, a Refinitiv company.

* The fund’s benchmark, the Bloomberg Municipal Bond Index, was introduced on 12/31/79, which post-dates the inception of the fund’s class A shares.

This comparison shows your fund’s performance in the context of broad market indexes for the six months ended 3/31/22. See above and pages 9–10 for additional fund performance information. Index descriptions can be found on pages 14–15.

All Bloomberg indices are provided by Bloomberg Index Services Limited.

4 Tax Exempt Income Fund 

Paul, how did municipal bonds perform during the six-month period ended March 31, 2022?

Municipal bonds encountered headwinds due to fears that persistently high inflation might prompt the Federal Reserve to pare back pro-growth monetary policies faster than expected. Inflation concerns were stoked by supply chain disruptions, rising labor costs, and higher commodity prices. Geopolitical and economic uncertainties surrounding Russia’s invasion of Ukraine in late February also unnerved investors.

The Fed faces the difficult task of tempering inflation without slowing economic growth or causing unemployment to rise. In January 2022, the Fed indicated it was on track to start a series of rate hikes in March 2022 and end its bond-buying stimulus program. The war in Ukraine and ensuing sanctions on Russia elevated commodity prices. This further complicated the Fed’s balancing act and shifted expectations higher for the number and degree of interest-rate hikes. At their March meeting just before period-end, Fed policymakers raised their benchmark rate by a quarter percentage point and signaled their intent to take further

Tax Exempt Income Fund 5 

Top 10 state allocations are shown as a percentage of the fund’s net assets as of 3/31/22. Investments in Puerto Rico represented 0.4% of the fund’s net assets. Summary information may differ from the portfolio schedule included in the financial statements due to the inclusion of derivative securities, any interest accruals, and the use of different classifications of securities for presentation purposes. Holdings and allocations may vary over time.

Credit qualities are shown as a percentage of the fund’s net assets as of 3/31/22. A bond rated BBB or higher (SP-3 or higher, for short-term debt) is considered investment grade. This chart reflects the highest security rating provided by one or more of Standard & Poor’s, Moody’s, and Fitch. Ratings may vary over time.

Cash and net other assets, if any, represent the market value weights of cash, derivatives, and short-term securities in the portfolio. The fund itself has not been rated by an independent rating agency.

6 Tax Exempt Income Fund 

measures to curb the highest inflation in 40 years. The markets subsequently began pricing in a higher probability that the Fed would raise interest rates by a half percentage point at one or more of its 2022 meetings.

These factors led to significant outflows from municipal bond funds, resulting in increasingly difficult market technicals. For the six months ended March 31, 2022, the Bloomberg Municipal Bond Index [the fund’s benchmark] returned –5.55%. Short-term municipal bonds outperformed their intermediate- and long-term cohorts. From a credit perspective, investment-grade municipal bonds held up better than higher-yielding, lower-rated municipal bonds.

How did the fund perform during the reporting period?

For the six months ended March 31, 2022, the fund underperformed its benchmark and the average return of its Lipper peer group, General & Insured Municipal Debt Funds.

What strategies or holdings influenced the fund’s performance during the period?

At period-end, the fund held an overweight exposure to bonds rated A and BBB relative to the benchmark. From a sector- or industry-positioning perspective, we favored charter school, essential-service housing, and continuing-care retirement community bonds relative to the fund’s Lipper peer group. Duration positioning, a measure of the fund’s interest-rate sensitivity, was generally neutral relative to the level of its Lipper peer group at period-end.

Regarding our strategy for state debt, the fund held an overweight exposure to Illinois relative to its Lipper peer group. We believe Illinois’s financial profile continues to stabilize, and its flexibility and credit fundamentals have improved since the onset of the Covid-19 pandemic in the United States.

We remain cautious about investing in bonds issued by Puerto Rico due to what we believe are its seemingly fragile economy, weak demographic trends, poor-quality infrastructure, volatile political environment, and history of fiscal mismanagement. As such, the fund remained underweight in its exposure to uninsured Puerto Rico municipal debt relative to its Lipper peer group. We continue to monitor Puerto Rico’s ongoing restructuring efforts for potential opportunities.

How did you use derivatives during the period?

We utilized swaps to hedge or gain exposure to interest-rate and term structure risk and to hedge or gain exposure to inflation. Additionally, we used futures for hedging treasury term structure risk and yield curve positioning.

What is your current assessment of the health of the municipal bond market?

Municipal bonds had a difficult start to 2022 as positive seasonal factors waned, fund flows turned negative, and the market adjusted to a quicker pace of policy normalization. However, municipal credit fundamentals remain strong, in our view. Unprecedented fiscal support, tax revenue outperformance, and strong economic growth expectations put most state and local governments in their best fiscal shape for more than a decade. State and local tax collections also were up 13.6% in 2021 compared with 2020. Finally, municipal defaults are in line with long-term averages and remain isolated to the lowest-rated cohorts. As such, we believe the credit outlook is currently the most favorable factor supporting the asset class.

What is your outlook?

Higher-than-expected inflation and strong labor reports during the early months of 2022 have seemingly cemented the Fed’s pivot

Tax Exempt Income Fund 7 

to a more hawkish stance. The market has quickly repriced to reflect a faster pace of policy normalization. In our view, the Fed is likely to continue the path of policy normalization. This process could contribute to heightened market volatility but also present investors with attractive opportunities.

We expect pandemic-related supply chain pressures will begin to ease and U.S. economic activity will slow in the second half of 2022. We think the combination could contribute to slower growth and lower inflation, which could lead to a slower pace of policy normalization than is currently priced in.

In our view, the technical environment is likely to remain challenged, as investors respond to tightening monetary policy. The volatility-induced outflow cycle is no longer a potential risk but a current reality. Municipal bond funds saw $23 billion in outflows during the first quarter of 2022. However, valuations at this level are more attractive, and future returns look more promising for longer-term investors, in our opinion.

Thank you, Paul, for your time and insights today.

The views expressed in this report are exclusively those of Putnam Management and are subject to change. They are not meant as investment advice.

Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk. Statements in the Q&A concerning the fund’s performance or portfolio composition relative to those of the fund’s Lipper peer group may reference information produced by Lipper Inc. or through a third party.

This chart shows how the fund’s top weightings have changed over the past six months. Allocations are shown as a percentage of the fund’s net assets. Current period summary information may differ from the information in the portfolio schedule notes included in the financial statements due to the inclusion of derivative securities, any interest accruals, the timing of matured security transactions, the use of different classifications of securities for presentation purposes, and rounding. Holdings and allocations may vary over time.

8 Tax Exempt Income Fund 

Your fund’s performance

This section shows your fund’s performance, price, and distribution information for periods ended March 31, 2022, the end of the first half of its current fiscal year. In accordance with regulatory requirements for mutual funds, we also include expense information taken from the fund’s current prospectus. Performance should always be considered in light of a fund’s investment strategy. Data represent past performance. Past performance does not guarantee future results. More recent returns may be less or more than those shown. Investment return and principal value will fluctuate, and you may have a gain or a loss when you sell your shares. Performance information does not reflect any deduction for taxes a shareholder may owe on fund distributions or on the redemption of fund shares. For the most recent month-end performance, please visit the Individual Investors section at putnam.com or call Putnam at 1-800-225-1581. Class R6 and Y shares are not available to all investors. See the Terms and definitions section in this report for definitions of the share classes offered by your fund.

Annualized fund performance Total return for periods ended 3/31/22

	Life of fund	10 years	5 years	3 years	1 year	6 months
Class A (12/31/76)
Before sales charge	5.97%	2.84%	2.58%	1.55%	–4.51%	–6.02%
After sales charge	5.87	2.43	1.74	0.18	–8.33	–9.78
Class B (1/4/93)
Before CDSC	5.81	2.31	1.93	0.91	–5.23	–6.33
After CDSC	5.81	2.31	1.57	–0.02	–9.82	–10.90
Class C (7/26/99)
Before CDSC	5.82	2.20	1.78	0.77	–5.32	–6.35
After CDSC	5.82	2.20	1.78	0.77	–6.23	–7.26
Class R6 (5/22/18)
Net asset value	6.05	3.06	2.80	1.77	–4.35	–5.88
Class Y (1/2/08)
Net asset value	6.05	3.07	2.81	1.79	–4.37	–5.88

Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. After-sales-charge returns for class A shares reflect the deduction of the maximum 4.00% sales charge levied at the time of purchase. Class B share returns after contingent deferred sales charge (CDSC) reflect the applicable CDSC, which is 5% in the first year, declining over time to 1% in the sixth year, and is eliminated thereafter. Class C share returns after CDSC reflect a 1% CDSC for the first year that is eliminated thereafter. Class R6 and Y shares have no initial sales charge or CDSC. Performance for class B, C, and Y shares before their inception is derived from the historical performance of class A shares, adjusted for the applicable sales charge (or CDSC) and the higher operating expenses for such shares, except for class Y shares, for which 12b-1 fees are not applicable. Performance for class R6 shares prior to their inception is derived from the historical performance of class Y shares and has not been adjusted for the lower investor servicing fees applicable to class R6 shares; had it, returns would have been higher.

Returns for periods of less than one year are not annualized.

For a portion of the periods, the fund had expense limitations, without which returns would have been lower.

Class B and C share performance reflects conversion to class A shares after eight years.

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Comparative annualized index returns For periods ended 3/31/22

	Life of fund	10 years	5 years	3 years	1 year	6 months
Bloomberg Municipal
Bond Index	—*	2.88%	2.52%	1.53%	–4.47%	–5.55%
Lipper General & Insured
Municipal Debt Funds
category average†	5.43%	2.83	2.47	1.54	–4.30	–5.73

Index and Lipper results should be compared with fund performance before sales charge, before CDSC, or at net asset value.

Returns for periods of less than one year are not annualized.

All Bloomberg indices are provided by Bloomberg Index Services Limited.

Lipper peer group average is provided by Lipper, a Refinitiv company.

^* The fund’s benchmark, the Bloomberg Municipal Bond Index, was introduced on 12/31/79, which post-dates the inception of the fund’s class A shares.

^† Over the 6-month, 1-year, 3-year, 5-year, 10-year, and life-of-fund periods ended 3/31/22, there were 299, 295, 271, 234, 172, and 8 funds, respectively, in this Lipper category.

Fund price and distribution information For the six-month period ended 3/31/22

Distributions	Class A		Class B	Class C	Class R6	Class Y
Number	6		6	6	6	6
Income1	$0.087422		$0.058730	$0.055921	$0.099241	$0.098464
Capital gains2
Long-term gains	0.157500		0.157500	0.157500	0.157500	0.157500
Short-term gains	0.006900		0.006900	0.006900	0.006900	0.006900
Total	$0.251822		$0.223130	$0.220321	$0.263641	$0.262864
	Before	After	Net	Net	Net	Net
	sales	sales	asset	asset	asset	asset
Share value	charge	charge	value	value	value	value
9/30/21	$8.85	$9.22	$8.85	$8.87	$8.86	$8.87
3/31/22	8.08	8.42	8.08	8.10	8.09	8.10
	Before	After	Net	Net	Net	Net
Current rate	sales	sales	asset	asset	asset	asset
(end of period)	charge	charge	value	value	value	value
Current dividend rate3	2.19%	2.11%	1.57%	1.43%	2.47%	2.45%
Taxable equivalent4	3.70	3.56	2.65	2.42	4.17	4.14
Current 30-day
SEC yield5	N/A	1.66	1.12	0.97	2.01	1.98
Taxable equivalent4	N/A	2.80	1.89	1.64	3.40	3.34

The classification of distributions, if any, is an estimate. Before-sales-charge share value and current dividend rate for class A shares, if applicable, do not take into account any sales charge levied at the time of purchase. After-sales-charge share value, current dividend rate, and current 30-day SEC yield, if applicable, are calculated assuming that the maximum sales charge (4.00% for class A shares) was levied at the time of purchase. Final distribution information will appear on your year-end tax forms.

¹ For some investors, investment income may be subject to the federal alternative minimum tax.

² Capital gains, if any, are taxable for federal and, in most cases, state purposes.

³ Most recent distribution, including any return of capital and excluding capital gains, annualized and divided by share price before or after sales charge at period-end.

⁴ Assumes maximum 40.80% federal tax rate for 2022. Results for investors subject to lower tax rates would not be as advantageous.

⁵ Based only on investment income and calculated using the maximum offering price for each share class, in accordance with SEC guidelines.

10 Tax Exempt Income Fund 

Your fund’s expenses

As a mutual fund investor, you pay ongoing expenses, such as management fees, distribution fees (12b-1 fees), and other expenses. In the most recent six-month period, your fund’s expenses were limited; had expenses not been limited, they would have been higher. Using the following information, you can estimate how these expenses affect your investment and compare them with the expenses of other funds. You may also pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial representative.

Expense ratios

	Class A	Class B	Class C	Class R6	Class Y
Total annual operating expenses for the fiscal
year ended 9/30/21	0.80%	1.40%	1.55%	0.54%	0.55%
Annualized expense ratio for the six-month
period ended 3/31/22*	0.81%	1.41%	1.56%	0.54%	0.56%

Fiscal year expense information in this table is taken from the most recent prospectus, is subject to change, and may differ from that shown for the annualized expense ratio and in the financial highlights of this report.

Expenses are shown as a percentage of average net assets.

^* Includes less than 0.01% from annualizing one-time proxy related costs.

Expenses per $1,000

The following table shows the expenses you would have paid on a $1,000 investment in each class of the fund from 10/1/21 to 3/31/22. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

	Class A	Class B	Class C	Class R6	Class Y
Expenses paid per $1,000*†	$3.92	$6.81	$7.53	$2.61	$2.71
Ending value (after expenses)	$939.80	$936.70	$936.50	$941.20	$941.20

^* Expenses for each share class are calculated using the fund’s annualized expense ratio for each class, which represents the ongoing expenses as a percentage of average net assets for the six months ended 3/31/22. The expense ratio may differ for each share class.

^† Expenses are calculated by multiplying the expense ratio by the average account value for the period; then multiplying the result by the number of days in the period (182); and then dividing that result by the number of days in the year (365).

Tax Exempt Income Fund 11 

Estimate the expenses you paid

To estimate the ongoing expenses you paid for the six months ended 3/31/22, use the following calculation method. To find the value of your investment on 10/1/21, call Putnam at 1-800-225-1581.

Compare expenses using the SEC’s method

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the following table shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total costs) of investing in the fund with those of other funds. All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

	Class A	Class B	Class C	Class R6	Class Y
Expenses paid per $1,000*†	$4.08	$7.09	$7.85	$2.72	$2.82
Ending value (after expenses)	$1,020.89	$1,017.90	$1,017.15	$1,022.24	$1,022.14

^* Expenses for each share class are calculated using the fund’s annualized expense ratio for each class, which represents the ongoing expenses as a percentage of average net assets for the six months ended 3/31/22. The expense ratio may differ for each share class.

^† Expenses are calculated by multiplying the expense ratio by the average account value for the six-month period; then multiplying the result by the number of days in the six-month period (182); and then dividing that result by the number of days in the year (365).

12 Tax Exempt Income Fund 

Consider these risks before investing

The value of investments in the fund’s portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general economic, political, or financial market conditions; investor sentiment and market perceptions; government actions; geopolitical events or changes; and factors related to a specific issuer, geography, industry, or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund’s portfolio holdings.

Tax-exempt bonds may be issued under the Internal Revenue Code only by limited types of issuers for limited types of projects. As a result, the fund’s investments may be focused in certain market segments and be more vulnerable to fluctuations in the values of the securities it holds than a more broadly invested fund. Interest the fund receives might be taxable.

Capital gains, if any, are taxable for federal and, in most cases, state purposes. For some investors, investment income may be subject to the federal alternative minimum tax. Income from federally tax-exempt funds may be subject to state and local taxes. Bond investments are subject to interest-rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments). Bond investments may be more susceptible to downgrades or defaults during economic downturns or other periods of economic stress. Interest-rate risk is generally greater for longer-term bonds, and credit risk is generally greater for below-investment-grade bonds. Unlike bonds, funds that invest in bonds have fees and expenses.

Our investment techniques, analyses, and judgments may not produce the outcome we intend. The investments we select for the fund may not perform as well as other securities that we do not select for the fund. We, or the fund’s other service providers, may experience disruptions or operating errors that could have a negative effect on the fund. You can lose money by investing in the fund.

Tax Exempt Income Fund 13 

Terms and definitions

Important terms

Total return shows how the value of the fund’s shares changed over time, assuming you held the shares through the entire period and reinvested all distributions in the fund.

Before sales charge, or net asset value, is the price, or value, of one share of a mutual fund, without a sales charge. Before-sales-charge figures fluctuate with market conditions. They are calculated by dividing the net assets of each class of shares by the number of outstanding shares in the class.

After sales charge is the price of a mutual fund share plus the maximum sales charge levied at the time of purchase. After-sales-charge performance figures shown here assume the 4.00% maximum sales charge for class A shares.

Contingent deferred sales charge (CDSC) is generally a charge applied at the time of the redemption of class B or C shares and assumes redemption at the end of the period. Your fund’s class B CDSC declines over time from a 5% maximum during the first year to 1% during the sixth year. After the sixth year, the CDSC no longer applies. The CDSC for class C shares is 1% for one year after purchase.

Share classes

Class A shares are generally subject to an initial sales charge and no CDSC (except on certain redemptions of shares bought without an initial sales charge).

Class B shares are closed to new investments and are only available by exchange from class B shares of another Putnam fund or through dividend and/or capital gains reinvestment. They are not subject to an initial sales charge and may be subject to a CDSC.

Class C shares are not subject to an initial sales charge and are subject to a CDSC only if the shares are redeemed during the first year.

Class R6 shares are not subject to an initial sales charge or CDSC and carry no 12b-1 fee. They are generally only available to employer-sponsored retirement plans, corporate and institutional clients, and clients in other approved programs.

Class Y shares are not subject to an initial sales charge or CDSC and carry no 12b-1 fee. They are generally only available to corporate and institutional clients and clients in other approved programs.

Fixed-income terms

Current rate is the annual rate of return earned from dividends or interest of an investment. Current rate is expressed as a percentage of the price of a security, fund share, or principal investment.

Yield curve is a graph that plots the yields of bonds with equal credit quality against their differing maturity dates, ranging from shortest to longest. It is used as a benchmark for other debt, such as mortgage or bank lending rates.

Comparative indexes

Bloomberg Municipal Bond Index is an unmanaged index of long-term, fixed-rate, investment-grade tax-exempt bonds.

Bloomberg U.S. Aggregate Bond Index is an unmanaged index of U.S. investment-grade fixed-income securities.

ICE BofA (Intercontinental Exchange Bank of America) U.S. 3-Month Treasury Bill Index is an unmanaged index that seeks to measure the performance of U.S. Treasury bills available in the marketplace.

S&P 500^® Index is an unmanaged index of common stock performance.

Indexes assume reinvestment of all distributions and do not account for fees. Securities and performance of a fund and an index will differ. You cannot invest directly in an index.

14 Tax Exempt Income Fund 

BLOOMBERG^®  is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). Bloomberg or Bloomberg’s licensors own all proprietary rights in the Bloomberg Indices. Neither Bloomberg nor Bloomberg’s licensors approve or endorse this material, or guarantee the accuracy or completeness of any information herein, or make any warranty, express or implied, as to the results to be obtained therefrom, and to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.

ICE Data Indices, LLC (“ICE BofA”), used with permission. ICE BofA permits use of the ICE BofA indices and related data on an “as is” basis; makes no warranties regarding same; does not guarantee the suitability, quality, accuracy, timeliness, and/or completeness of the ICE BofA indices or any data included in, related to, or derived therefrom; assumes no liability in connection with the use of the foregoing; and does not sponsor, endorse, or recommend Putnam Investments, or any of its products or services.

Lipper, a Refinitiv company, is a third-party industry-ranking entity that ranks mutual funds. Its rankings do not reflect sales charges. Lipper rankings are based on total return at net asset value relative to other funds that have similar current investment styles or objectives as determined by Lipper. Lipper may change a fund’s category assignment at its discretion. Lipper category averages reflect performance trends for funds within a category.

Tax Exempt Income Fund 15 

Other information for shareholders

Important notice regarding delivery of shareholder documents

In accordance with Securities and Exchange Commission (SEC) regulations, Putnam sends a single notice of internet availability, or a single printed copy, of annual and semiannual shareholder reports, prospectuses, and proxy statements to Putnam shareholders who share the same address, unless a shareholder requests otherwise. If you prefer to receive your own copy of these documents, please call Putnam at 1-800-225-1581, and Putnam will begin sending individual copies within 30 days.

Proxy voting

Putnam is committed to managing our mutual funds in the best interests of our shareholders. The Putnam funds’ proxy voting guidelines and procedures, as well as information regarding how your fund voted proxies relating to portfolio securities during the 12-month period ended June 30, 2021, are available in the Individual Investors section of putnam.com and on the SEC’s website, www.sec.gov. If you have questions about finding forms on the SEC’s website, you may call the SEC at 1-800-SEC-0330. You may also obtain the Putnam funds’ proxy voting guidelines and procedures at no charge by calling Putnam’s Shareholder Services at 1-800-225-1581.

Fund portfolio holdings

The fund will file a complete schedule of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT within 60 days of the end of such fiscal quarter. Shareholders may obtain the fund’s Form N-PORT on the SEC’s website at www.sec.gov.

Prior to its use of Form N-PORT, the fund filed its complete schedule of its portfolio holdings with the SEC on Form N-Q, which is available online at www.sec.gov.

Trustee and employee fund ownership

Putnam employees and members of the Board of Trustees place their faith, confidence, and, most importantly, investment dollars in Putnam mutual funds. As of March 31, 2022, Putnam employees had approximately $530,000,000 and the Trustees had approximately $77,000,000 invested in Putnam mutual funds. These amounts include investments by the Trustees’ and employees’ immediate family members as well as investments through retirement and deferred compensation plans.

16 Tax Exempt Income Fund 

Financial statements

These sections of the report, as well as the accompanying Notes, constitute the fund’s financial statements.

The fund’s portfolio lists all the fund’s investments and their values as of the last day of the reporting period. Holdings are organized by asset type and industry sector, country, or state to show areas of concentration and diversification.

Statement of assets and liabilities shows how the fund’s net assets and share price are determined. All investment and non-investment assets are added together. Any unpaid expenses and other liabilities are subtracted from this total. The result is divided by the number of shares to determine the net asset value per share, which is calculated separately for each class of shares. (For funds with preferred shares, the amount subtracted from total assets includes the liquidation preference of preferred shares.)

Statement of operations shows the fund’s net investment gain or loss. This is done by first adding up all the fund’s earnings — from dividends and interest income — and subtracting its operating expenses to determine net investment income (or loss). Then, any net gain or loss the fund realized on the sales of its holdings — as well as any unrealized gains or losses over the period — is added to or subtracted from the net investment result to determine the fund’s net gain or loss for the fiscal period.

Statement of changes in net assets shows how the fund’s net assets were affected by the fund’s net investment gain or loss, by distributions to shareholders, and by changes in the number of the fund’s shares. It lists distributions and their sources (net investment income or realized capital gains) over the current reporting period and the most recent fiscal year-end. The distributions listed here may not match the sources listed in the Statement of operations because the distributions are determined on a tax basis and may be paid in a different period from the one in which they were earned. Dividend sources are estimated at the time of declaration. Actual results may vary. Any non-taxable return of capital cannot be determined until final tax calculations are completed after the end of the fund’s fiscal period.

Financial highlights provide an overview of the fund’s investment results, per-share distributions, expense ratios, net investment income ratios, and portfolio turnover in one summary table, reflecting the five most recent reporting periods. In a semiannual report, the highlights table also includes the current reporting period.

Tax Exempt Income Fund 17 

The fund’s portfolio 3/31/22 (Unaudited)

Key to holding’s abbreviations

ABAG Association Of Bay Area Governments 

AGM Assured Guaranty Municipal Corporation 

AMBAC AMBAC Indemnity Corporation 

BAM Build America Mutual 

FGIC Financial Guaranty Insurance Company 

FRB Floating Rate Bonds: The rate shown is the current interest rate at the close of the reporting period. Rates may be subject to a cap or floor. For certain securities, the rate may represent a fixed rate currently in place at the close of the reporting period. 

G.O. Bonds General Obligation Bonds 

NATL National Public Finance Guarantee Corporation 

OTC Over-the-counter 

PSFG Permanent School Fund Guaranteed 

Q-SBLF Qualified School Board Loan Fund 

U.S. Govt. Coll. U.S. Government Collateralized 

VRDN Variable Rate Demand Notes, which are floating-rate securities with long-term maturities that carry coupons that reset and are payable upon demand either daily, weekly or monthly. The rate shown is the current interest rate at the close of the reporting period. Rates are set by remarketing agents and may take into consideration market supply and demand, credit quality and the current SIFMA Municipal Swap Index rate, which was 0.51% as of the close of the reporting period. 

MUNICIPAL BONDS AND NOTES (106.0%)*	Rating**	Principal amount	Value
Alabama (0.6%)
Jefferson Cnty., Swr. Rev. Bonds, Ser. D, 6.50%, 10/1/53	BBB	$1,000,000	$1,113,903
Jefferson, Cnty. Rev. Bonds, (Refunding warrants)
5.00%, 9/15/34	AA	2,575,000	2,877,328
5.00%, 9/15/33	AA	350,000	391,395
			4,382,626
Alaska (1.2%)
AK State Indl. Dev. & Export Auth. Rev. Bonds, (Tanana Chiefs Conference), Ser. A
4.00%, 10/1/44	A+/F	6,425,000	6,774,288
4.00%, 10/1/39	A+/F	2,575,000	2,745,657
			9,519,945
Arizona (3.1%)
AZ State Indl. Dev. Auth. Rev. Bonds, (Equitable School Revolving Fund, LLC Oblig. Group)
4.00%, 11/1/45	A	2,200,000	2,284,748
4.00%, 11/1/40	A	800,000	838,659
4.00%, 11/1/39	A	750,000	787,464
4.00%, 11/1/38	A	600,000	630,968
4.00%, 11/1/37	A	1,100,000	1,158,621
AZ State Indl. Dev. Auth. Ed. Rev. Bonds, (KIPP New York, Inc., Jerome Fac.), Ser. B
4.00%, 7/1/61	BBB−	2,120,000	2,023,945
4.00%, 7/1/51	BBB−	2,000,000	1,952,813
AZ State Indl. Dev. Auth. Ed. 144A Rev. Bonds, (Somerset Academy of Las Vegas), 4.00%, 12/15/51	BB	700,000	652,702
AZ State Sports & Tourism Auth. Rev. Bonds, (Multi-Purpose Stadium Fac.), Ser. A, 5.00%, 7/1/30	A1	500,000	503,760
El Mirage, G.O. Bonds, AGM, 5.00%, 7/1/42	Aa2	250,000	252,095
Glendale, Indl. Dev. Auth. Sr. Living Fac. Rev. Bonds, (Royal Oaks Life Care Cmnty.), 5.00%, 5/15/39	BBB−/F	3,500,000	3,662,989

18 Tax Exempt Income Fund

MUNICIPAL BONDS AND NOTES (106.0%)* cont.	Rating**	Principal amount	Value
Arizona cont.
Lake Havasu City, Waste Wtr. Syst. Rev. Bonds, Ser. B, AGM, 5.00%, 7/1/43	AA	$250,000	$270,094
Maricopa Cnty., Indl. Dev. Auth. Ed. Rev. Bonds
(Great Hearts Academies), Ser. C, 5.00%, 7/1/48	AA−	600,000	650,069
(Reid Traditional Schools Painted Rock Academy), 5.00%, 7/1/36	Baa3	250,000	268,220
(Horizon Cmnty. Learning Ctr.), 5.00%, 7/1/35	BB+	350,000	363,673
Northern AZ U. Rev. Bonds, 5.00%, 6/1/34	A1	250,000	263,346
Phoenix, Civic Impt. Corp. Dist. Rev. Bonds, (Civic Plaza), Ser. B, FGIC, NATL, 5.50%, 7/1/43	Aa2	1,000,000	1,344,389
Phoenix, Indl. Dev. Auth. Ed. Rev. Bonds
(Great Hearts Academies), 5.00%, 7/1/44	BBB−	1,000,000	1,037,518
(Great Hearts Academies), Ser. A, 5.00%, 7/1/36	BBB−	1,010,000	1,069,351
(Choice Academies, Inc.), 4.875%, 9/1/22	BB	35,000	35,317
(Great Hearts Academies), 3.75%, 7/1/24	BBB−	110,000	111,412
Phoenix, Indl. Dev. Auth. Ed. 144A Rev. Bonds, (BASIS Schools, Inc.)
5.00%, 7/1/35	BB	100,000	105,212
Ser. A, 5.00%, 7/1/35	BB	150,000	157,818
Salt Verde, Fin. Corp. Gas Rev. Bonds
5.50%, 12/1/29	A3	1,900,000	2,219,303
5.00%, 12/1/37	A3	500,000	593,020
U. of AZ Board of Regents Syst. Rev. Bonds, (Green Bond), Ser. A, 5.00%, 7/1/41	Aa2	200,000	217,904
Yavapai Cnty., Indl. Dev. Auth. Hosp. Fac. Rev. Bonds, (Yavapai Regl. Med. Ctr.), Ser. A, 5.25%, 8/1/33	A+	100,000	104,257
Yavapai Cnty., Indl. Dev. Ed. Auth. Rev. Bonds, (Agribusiness & Equine Ctr.), 5.00%, 3/1/32	BB+	265,000	267,015
Yuma, Indl. Dev. Auth. Hosp. Rev. Bonds, (Yuma Regl. Med. Ctr.), Ser. A, 5.25%, 8/1/32	A	400,000	427,446
			24,254,128
California (11.1%)
ABAG Fin. Auth. for Nonprofit Corps. Rev. Bonds, (Episcopal Sr. Cmntys.), Ser. A, 5.00%, 7/1/42 (Prerefunded 7/1/22)	AAA/P	1,300,000	1,312,334
Bay Area Wtr. Supply & Conservation Agcy. Rev. Bonds
5.00%, 10/1/33 ##	Aa3	2,000,000	2,343,054
5.00%, 10/1/31 ##	Aa3	2,000,000	2,311,860
5.00%, 10/1/29 ##	Aa3	1,500,000	1,695,888
CA Cmnty. Hsg. Agcy. Essential Hsg. 144A Rev. Bonds
(Aster Apt.), Ser. A-1, 4.00%, 2/1/56	BB+/P	850,000	801,829
(Glendale Properties), Ser. A-1, 4.00%, 2/1/56	BB/P	2,000,000	1,886,656
(Fountains at Emerald Park), 3.00%, 8/1/56	BBB/P	5,975,000	4,587,759
CA Hsg. Fin. Agcy. Muni. Certif. Rev. Bonds, Ser. 21-1, Class A, 3.50%, 11/20/35	BBB+	3,153,958	3,293,261
CA Pub. Fin. Auth. VRDN, (Sharp Hlth. Care Oblig. Group), Ser. C, 0.38%, 8/1/52	VMIG 1	5,870,000	5,870,000
CA State Poll. Control Fin. Auth. Rev. Bonds, (San Jose Wtr. Co.), 4.75%, 11/1/46	A	1,700,000	1,843,470

Tax Exempt Income Fund 19

MUNICIPAL BONDS AND NOTES (106.0%)* cont.	Rating**	Principal amount	Value
California cont.
CA State Poll. Control Fin. Auth. 144A Rev. Bonds, (Wtr. Furnishing), 5.00%, 11/21/45	Baa3	$3,500,000	$3,561,424
CA State Pub. Wks. Board Rev. Bonds, (Various Cap.), Ser. A, 5.00%, 8/1/33	Aa3	4,500,000	5,391,278
CA Statewide Cmnty. Dev. Auth. Rev. Bonds
AGM, 5.00%, 11/15/44 (Prerefunded 11/15/24)	AA	1,500,000	1,618,359
(Front Porch Cmnty. & Svcs. Oblig. Group), Ser. A, 3.00%, 4/1/51	A−	6,700,000	5,763,515
CSCDA Cmnty. Impt. Auth. Rev. Bonds, (Pasadena Portfolio), Ser. A-2, 3.00%, 12/1/56	BBB−/P	3,250,000	2,492,227
CSCDA Cmnty. Impt. Auth. 144A Rev. Bonds
(City of Orange Portfolio), 3.00%, 3/1/57	BBB−/P	1,250,000	952,825
(Essential Hsg.), Ser. A-2, 3.00%, 2/1/57	BBB−/P	3,800,000	2,895,119
Los Angeles, Cmnty. Fac. Dist. No. 11 Special Tax, 4.00%, 9/1/46	BB/P	1,460,000	1,474,505
Los Angeles, Dept. of Arpt. Rev. Bonds
5.00%, 5/15/45	AA−	1,500,000	1,722,400
Ser. C, 5.00%, 5/15/29	Aa2	3,000,000	3,442,916
4.00%, 5/15/42	Aa3	1,350,000	1,418,561
M-S-R Energy Auth. Rev. Bonds, Ser. A, 6.50%, 11/1/39	BBB+	2,250,000	3,053,247
Menifee, Union School Dist. Cmnty. Fac. Special Tax, (Dist. No. 2011-1)
4.00%, 9/1/45	BB+/P	860,000	872,484
4.00%, 9/1/41	BB+/P	800,000	817,999
Mount Diablo Unified School Dist. G.O. Bonds, Ser. B
4.00%, 6/1/37 ##	Aa3	1,625,000	1,796,429
4.00%, 8/1/36 ##	Aa3	1,375,000	1,521,303
4.00%, 8/1/35 ##	Aa3	1,500,000	1,661,376
4.00%, 8/1/34 ##	Aa3	2,000,000	2,217,797
River Islands Pub. Fin. Auth. Special Tax, (Cmnty. Fac. Dist. No. 2021-1)
4.00%, 9/1/51	BB−/P	350,000	351,119
4.00%, 9/1/46	BB−/P	1,000,000	1,005,088
San Bernardino Cnty., FRB, Ser. C, 0.461%, 8/1/23	AA+	5,000,000	5,015,367
San Francisco, City & Cnty. Arpt. Comm. Intl. Arpt. Rev. Bonds, Ser. A, 5.00%, 5/1/30	A1	6,885,000	7,952,850
San Francisco, City & Cnty. Arpt. Comm. Intl. Arpt. VRDN, Ser. B, 0.52%, 5/1/58	VMIG 1	2,000,000	2,000,000
San Francisco, City & Cnty. Cmnty. Fac. Dist. No. 2016 144A Special Tax, (Impt. Area No. 2), Ser. A, 4.00%, 9/1/42	BB−/P	2,000,000	2,016,830
U. of CA VRDN, Ser. AL-4, 0.31%, 5/15/48	VMIG 1	1,800,000	1,800,000
			88,761,129
Colorado (2.9%)
CO State Hlth. Fac. Auth. Rev. Bonds
(Valley View Hosp. Assn.), 5.00%, 5/15/45	A	1,000,000	1,070,632
(Covenant Retirement Cmnty.), Ser. A, 5.00%, 12/1/35	A−/F	1,000,000	1,069,097
CO State Hlth. Fac. Auth. Hosp. Rev. Bonds, (CommonSpirit Health Oblig. Group)

20 Tax Exempt Income Fund

MUNICIPAL BONDS AND NOTES (106.0%)* cont.	Rating**	Principal amount	Value
Colorado cont.
CO State Hlth. Fac. Auth. Hosp. Rev. Bonds, (CommonSpirit Health Oblig. Group)
Ser. A-2, 4.00%, 8/1/49 T	A−	$4,500,000	$4,666,410
Ser. A-1, 4.00%, 8/1/44 T	A−	2,250,000	2,347,380
Ser. A-1, 4.00%, 8/1/39 T	A−	650,000	681,727
Ser. A-1, 4.00%, 8/1/38 T	A−	650,000	682,669
Ser. A-1, 4.00%, 8/1/37 T	A−	425,000	446,985
CO State Hlth. Fac. Auth. Hosp. Rev. Bonds, (Covenant Living Cmnty. and Svcs. Oblig. Group), 4.00%, 12/1/50	A−/F	4,100,000	4,351,797
Denver City & Cnty., Arpt. Rev. Bonds, (Sub. Syst.), Ser. A, 5.50%, 11/15/31	A2	1,925,000	2,017,166
E-470 CO Pub. Hwy. Auth. Rev. Bonds, Ser. A, NATL, zero %, 9/1/34	A2	5,000,000	3,432,885
Park Creek, Metro. Dist. Tax Alloc. Bonds, (Sr. Ltd. Property Tax Supported), Ser. A, 5.00%, 12/1/45	A/F	225,000	240,224
Vauxmont, Metro. Dist. G.O. Bonds, AGM
5.00%, 12/1/31	AA	230,000	270,109
3.25%, 12/15/50	AA	1,918,000	1,875,027
			23,152,108
Connecticut (1.8%)
CT State Hlth. & Edl. Fac. Auth. Rev. Bonds
(Masonicare Issue), Ser. F, 5.00%, 7/1/34	BBB+/F	1,500,000	1,605,611
(Stamford Hosp. Oblig. Group (The)), Ser. M, 5.00%, 7/1/33 ##	BBB+	1,855,000	2,184,723
(Stamford Hosp. Oblig. Group (The)), Ser. M, 5.00%, 7/1/32 ##	BBB+	600,000	707,479
(Stamford Hosp. Oblig. Group (The)), Ser. M, 4.00%, 7/1/42 ##	BBB+	935,000	967,403
(Stamford Hosp. Oblig. Group (The)), Ser. M, 4.00%, 7/1/41 ##	BBB+	1,470,000	1,524,260
CT State Hsg. Fin. Auth. Mtge. Program Rev. Bonds
Ser. F-2, 2.20%, 5/15/23	Aaa	965,000	964,981
Ser. B-1, 4.15%, 11/15/44 T	Aaa	4,065,000	4,173,698
Ser. B-1, 4.10%, 11/15/39 T	Aaa	1,685,000	1,729,096
			13,857,251
Delaware (0.1%)
DE State Econ. Dev. Auth. Charter School Rev. Bonds, (ASPIRA of Delaware Charter Operations, Inc.), 4.00%, 6/1/42	BB	730,000	718,051
			718,051
District of Columbia (2.3%)
DC Rev. Bonds
(Intl. School), 5.00%, 7/1/54	BBB	1,275,000	1,386,337
(KIPP DC), Ser. A, 5.00%, 7/1/48	BBB+	1,250,000	1,343,710
(D.C. Intl. School), 5.00%, 7/1/39	BBB	2,000,000	2,211,162
(KIPP DC), Ser. A, 5.00%, 7/1/37	BBB+	2,500,000	2,728,493
DC Ballpark Rev. Bonds, Ser. B-1, FGIC, NATL, 5.00%, 2/1/25	A1	1,035,000	1,038,244
Metro. Washington, Arpt. Auth. Dulles Toll Rd. Rev. Bonds, (Metrorail), Ser. A, zero %, 10/1/37	A−	11,000,000	5,625,577

Tax Exempt Income Fund 21

MUNICIPAL BONDS AND NOTES (106.0%)* cont.	Rating**	Principal amount	Value
District of Columbia cont.
Metro. Washington DC, Arpt. Auth. Dulles Toll Rd. Rev. Bonds, (Dulles Metrorail & Cap. Impt.)
4.00%, 10/1/53 T	A−	$2,050,000	$2,107,810
Ser. B, 4.00%, 10/1/44 T	A−	2,050,000	2,135,055
			18,576,388
Florida (4.7%)
Double Branch Cmnty. Dev. Dist. Special Assmt. Bonds, Ser. A-1, 4.25%, 5/1/34	A	890,000	904,712
FL State Dev. Fin Corp. Sr. Living Rev. Bonds, (Glenridge on Palmer Ranch Oblig. Group), 5.00%, 6/1/51	BB/P	1,300,000	1,363,197
FL State Dev. Fin. Corp. Ed. Fac. Rev. Bonds, (River City Ed. Oblig. Group)
4.00%, 7/1/55	Baa3	750,000	695,648
4.00%, 7/1/45	Baa3	600,000	582,590
FL State Dev. Fin. Corp. Hlth. Care Fac. Rev. Bonds, (Shands Jacksonville Medical Center, Inc.), 4.00%, 2/1/52	Baa3	2,400,000	2,421,747
Halifax Hosp. Med. Ctr. Rev. Bonds, 5.00%, 6/1/36	A−	3,700,000	4,053,724
Lakeland, Hosp. Syst. Rev. Bonds, (Lakeland Regl. Hlth.)
5.00%, 11/15/45	A2	1,735,000	1,817,381
5.00%, 11/15/40	A2	2,175,000	2,291,152
Lee Cnty., Indl. Dev. Auth. Rev. Bonds, (Shell Point/Waterside Hlth.)
5.00%, 11/15/49	BBB+	1,800,000	1,967,367
5.00%, 11/15/39	BBB+	750,000	828,261
Miami-Dade Cnty., Aviation Rev. Bonds
Ser. B, 5.00%, 10/1/40	A−	5,000,000	5,463,972
Ser. A, 5.00%, 10/1/38	A−	1,750,000	1,873,294
Orange Cnty., Hlth. Fac. Auth. Rev. Bonds, (Presbyterian Retirement Cmntys.), 5.00%, 8/1/34	A−/F	1,800,000	1,898,784
Palm Beach Cnty., Hlth. Fac. Auth. Rev. Bonds, (Acts Retirement-Life Cmnty., Inc.), 5.00%, 11/15/32	A−/F	5,000,000	5,532,198
Seminole Cnty., 144A Rev. Bonds, (Galileo School Foundation, Inc. (The))
4.00%, 6/15/56	Ba1	805,000	741,625
4.00%, 6/15/51	Ba1	830,000	782,186
4.00%, 6/15/41	Ba1	425,000	416,048
4.00%, 6/15/36	Ba1	315,000	313,971
Southeast Overtown Park West Cmnty. Redev. Agcy. 144A Tax Alloc. Bonds, Ser. A-1, 5.00%, 3/1/30	BBB+	480,000	501,681
Tampa, Cap. Impt. Cigarette Tax Rev. Bonds, (Cap. Appn.), Ser. A
zero %, 9/1/49	A1	2,250,000	747,745
zero %, 9/1/42	A1	830,000	375,610
Volusia Cnty., Edl. Fac. Auth. Rev. Bonds, (Embry-Riddle Aeronautical University, Inc.), Ser. A
4.00%, 10/15/39	A2	500,000	526,733
4.00%, 10/15/37	A2	725,000	765,939
4.00%, 10/15/35	A2	325,000	343,835
			37,209,400

22 Tax Exempt Income Fund

MUNICIPAL BONDS AND NOTES (106.0%)* cont.	Rating**	Principal amount	Value
Georgia (2.3%)
Atlanta, Tax Alloc. Bonds, (Atlantic Station), 5.00%, 12/1/24	A3	$800,000	$858,660
Atlanta, Arpt. Rev. Bonds, (Dept. of Aviation), Ser. C
4.00%, 7/1/42	Aa3	200,000	209,408
4.00%, 7/1/41	Aa3	1,000,000	1,049,144
Cobb Cnty., Kennestone Hosp. Auth. Rev. Bonds
(WellStar Hlth. Syst. Oblig. Group), Ser. A, 4.00%, 4/1/52	A+	1,300,000	1,359,139
(WellStar Hlth. Syst. Oblig. Group), 4.00%, 4/1/41	A+	275,000	288,702
(WellStar Hlth. Syst. Oblig. Group), 4.00%, 4/1/39	A+	475,000	503,487
(WellStar Hlth. Syst. Oblig. Group), 4.00%, 4/1/36	A+	250,000	266,077
(WellStar Hlth. Syst. Oblig. Group), 4.00%, 4/1/35	A+	225,000	239,676
(WellStar Hlth. Syst. Oblig. Group), 4.00%, 4/1/34	A+	250,000	266,609
(WellStar Hlth. Syst. Oblig. Group), 4.00%, 4/1/33	A+	200,000	213,553
Main Street Natural Gas, Inc. Gas Supply Mandatory Put Bonds (9/1/23), Ser. B, 0.904%, 4/1/48	Aa1	7,000,000	6,987,417
Muni. Election Auth. of GA Rev. Bonds, (Plant Vogtle Units 3 & 4)
Ser. A, 5.50%, 7/1/60	A	3,500,000	3,810,295
5.00%, 1/1/63	BBB+	2,000,000	2,196,450
			18,248,617
Guam (0.1%)
Territory of GU, Pwr. Auth. Rev. Bonds, Ser. A
5.00%, 10/1/34	Baa2	200,000	202,698
AGM, 5.00%, 10/1/30	AA	500,000	507,507
			710,205
Hawaii (0.1%)
HI State Harbor Syst. Rev. Bonds, Ser. A
4.00%, 7/1/36	Aa3	375,000	405,325
4.00%, 7/1/31	Aa3	250,000	272,981
			678,306
Idaho (1.3%)
ID State Hlth. Fac. Auth. VRDN (St Luke’s Hlth. Syst. Ltd. Oblig. Group), Ser. C, 0.38%, 3/1/48	VMIG 1	10,000,000	10,000,000
			10,000,000
Illinois (10.5%)
Chicago, G.O. Bonds
Ser. A, 5.00%, 1/1/30	BBB+	3,950,000	4,364,964
Ser. B, 4.00%, 1/1/38	BBB+	3,090,000	3,082,296
Ser. B, 4.00%, 1/1/37	BBB+	3,965,000	3,976,790
Chicago, Board of Ed. G.O. Bonds
Ser. C, 5.25%, 12/1/39	BB	1,500,000	1,575,101
Ser. A, 5.00%, 12/1/38	BB	2,000,000	2,175,967
Ser. A, 5.00%, 12/1/35	BB	2,000,000	2,184,339
Chicago, Hsg. Auth. Rev. Bonds, Ser. A, 5.00%, 1/1/31	AA−	4,540,000	5,053,829
Chicago, O’Hare Intl. Arpt. Rev. Bonds, Ser. A, 5.00%, 1/1/38	A	200,000	220,726
Chicago, Waste Wtr. Transmission Rev. Bonds
5.00%, 1/1/44	A	3,000,000	3,130,202
(2nd Lien), 5.00%, 1/1/39	A	2,720,000	2,834,258

Tax Exempt Income Fund 23

MUNICIPAL BONDS AND NOTES (106.0%)* cont.	Rating**	Principal amount	Value
Illinois cont.
Chicago, Wtr. Wks Rev. Bonds
5.00%, 11/1/29	A	$1,750,000	$1,944,257
AGM, 5.00%, 11/1/25	AA	1,420,000	1,429,868
IL State G.O. Bonds
5.00%, 11/1/41	Baa2	1,250,000	1,344,470
5.00%, 1/1/41	Baa2	700,000	747,379
5.00%, 1/1/35	Baa2	1,000,000	1,071,342
Ser. B, 5.00%, 10/1/32	Baa2	2,000,000	2,196,520
Ser. A, 5.00%, 12/1/31	Baa2	2,870,000	3,120,747
Ser. C, 5.00%, 11/1/29	Baa2	3,550,000	3,910,007
5.00%, 2/1/29	Baa2	2,725,000	2,979,543
Ser. A, 5.00%, 12/1/28	Baa2	2,000,000	2,211,051
Ser. D, 5.00%, 11/1/28	Baa2	6,425,000	7,093,914
5.00%, 2/1/28	Baa2	2,350,000	2,568,407
Ser. D, 5.00%, 11/1/27	Baa2	2,800,000	3,086,971
Ser. A, 4.00%, 3/1/38	Baa2	2,250,000	2,295,625
4.00%, 6/1/35	Baa2	1,825,000	1,858,544
4.00%, 6/1/34	Baa2	925,000	945,293
4.00%, 6/1/32	Baa2	985,000	1,015,868
IL State Fin. Auth. Mandatory Put Bonds (9/1/22), (Field Museum of Natural History), 0.657%, 11/1/34	A2	7,720,000	7,711,610
IL State Fin. Auth. Rev. Bonds
(Lawndale Edl & Regl. Network Charter School Oblig. Group), 4.00%, 11/1/56	BBB	750,000	761,469
(Lawndale Edl & Regl. Network Charter School Oblig. Group), 4.00%, 11/1/51	BBB	750,000	764,975
(Lawndale Edl & Regl. Network Charter School Oblig. Group), 4.00%, 11/1/41	BBB	725,000	750,914
(Riverside Hlth. Syst. Oblig. Group), 4.00%, 11/15/31	A+	500,000	533,518
IL State Fin. Auth. Student Hsg. & Academic Fac. Rev. Bonds, (U. of IL Chicago), 5.00%, 2/15/50	Baa3	500,000	532,591
Metro. Pier & Exposition Auth. Rev. Bonds, (McCormick Place Expansion), Ser. A, 5.00%, 6/15/57	BBB+	2,500,000	2,640,307
Metro. Wtr. Reclamation Dist. of Greater Chicago G.O. Bonds, (Green Bond), Ser. E, 5.00%, 12/1/29	AA	1,580,000	1,772,888
			83,886,550
Indiana (0.4%)
Indianapolis, Local Pub. Impt. Bond Bk. Rev. Bonds, (Courthouse and Jail), Ser. A, 5.00%, 2/1/54	Aa1	3,000,000	3,376,045
			3,376,045
Iowa (0.5%)
IA State Fin. Auth. Rev. Bonds, (Lifespace Cmnty., Inc. Oblig. Group), Ser. A, 4.00%, 5/15/46	BBB/F	3,850,000	3,563,004
			3,563,004
Kentucky (3.9%)
KY Pub. Trans. Infrastructure Auth. Rev. Bonds, (1st Tier Downtown Crossing), Ser. A, 6.00%, 7/1/53 (Prerefunded 7/1/23)	Baa2	1,400,000	1,472,466
KY State Property & Bldg. Comm. Rev. Bonds, (No. 117), Ser. B, 5.00%, 5/1/28	A1	565,000	640,585

24 Tax Exempt Income Fund

MUNICIPAL BONDS AND NOTES (106.0%)* cont.	Rating**	Principal amount	Value
Kentucky cont.
KY State Pub. Energy Auth. Gas Supply
Mandatory Put Bonds (6/1/25), Ser. C-1, 4.00%, 12/1/49	A1	$9,750,000	$10,120,305
Mandatory Put Bonds (1/1/25), Ser. B, 4.00%, 1/1/49	A1	5,000,000	5,188,502
KY State Tpk. Auth. Econ. Dev. Rev. Bonds, (Revitalization), Ser. A-22, 5.00%, 7/1/31	Aa3	3,400,000	4,073,742
Louisville & Jefferson Cnty., Metro. Govt. Hlth. Syst. Rev. Bonds, (Norton Healthcare, Inc.), Ser. A
5.00%, 10/1/30	A	1,135,000	1,263,140
4.00%, 10/1/34	A	6,000,000	6,386,704
Louisville, Regl. Arpt. Auth. Syst. Rev. Bonds, Ser. A
5.00%, 7/1/31	A	415,000	436,634
5.00%, 7/1/30	A	1,000,000	1,052,130
			30,634,208
Louisiana (0.8%)
St. John The Baptist Parish Mandatory Put Bonds (7/1/26), (Marathon Oil Corp.), Ser. A-3, 2.20%, 6/1/37	Baa3	4,000,000	3,873,354
Tangipahoa Parish, Hosp. Svcs. Rev. Bonds, (North Oaks Hlth. Syst.)
4.00%, 2/1/41	BBB+	1,250,000	1,309,053
4.00%, 2/1/39	BBB+	1,125,000	1,185,232
			6,367,639
Maryland (0.4%)
Gaithersburg, Econ. Dev. Rev. Bonds, (Asbury, Oblig. Group), Ser. A, 5.00%, 1/1/36	BBB/F	750,000	803,853
MD State Econ. Dev. Corp. Rev. Bonds, (Seagirt Marine Term.), Ser. A
5.00%, 6/1/49	Baa3	500,000	549,951
5.00%, 6/1/44	Baa3	500,000	553,149
MD State Hlth. & Higher Ed. Fac. Auth. Rev. Bonds, (Adventist Hlth. Care Oblig. Group)
5.00%, 1/1/30	Baa3	285,000	322,859
5.00%, 1/1/29	Baa3	290,000	325,082
5.00%, 1/1/28	Baa3	300,000	332,374
5.00%, 1/1/27	Baa3	430,000	470,314
			3,357,582
Massachusetts (2.5%)
MA State Hsg. Fin. Agcy. Rev. Bonds, Ser. A, 5.10%, 12/1/30	Aa2	895,000	901,990
MA State Port Auth. Rev. Bonds, Ser. E, 5.00%, 7/1/51	Aa2	12,000,000	13,511,559
MA State Wtr. Resource Auth. VRDN, Ser. A-3, 0.47%, 8/1/37	VMIG 1	5,705,000	5,705,000
			20,118,549
Michigan (8.6%)
Belding Area School G.O. Bonds, Ser. A, Q-SBLF, 5.00%, 5/1/40	AA	300,000	328,799
Chippewa, Valley School G.O. Bonds, Ser. A, Q-SBLF, 5.00%, 5/1/34	Aa1	250,000	274,677
Detroit, G.O. Bonds, AMBAC, 5.25%, 4/1/24	A−/P	77,500	77,350

Tax Exempt Income Fund 25

MUNICIPAL BONDS AND NOTES (106.0%)* cont.	Rating**	Principal amount	Value
Michigan cont.
Detroit, Downtown Dev. Auth. Tax Alloc. Bonds, Ser. A, AGM
5.00%, 7/1/48	AA	$7,000,000	$7,364,907
5.00%, 7/1/38	AA	1,000,000	1,055,266
Genesee Cnty., Wtr. Supply Syst. G.O. Bonds
BAM, 5.25%, 2/1/40	AA	200,000	216,744
(Wtr. Supply Syst.), Ser. B, BAM, 5.00%, 2/1/33	AA	250,000	274,508
Grand Rapids, Wtr. Supply Syst. Rev. Bonds, 5.00%, 1/1/41	Aa2	400,000	434,392
Grand Valley, State U. Rev. Bonds, (MI State U.), Ser. A, U.S. Govt. Coll., 5.00%, 12/1/32	A1	250,000	275,041
Great Lakes, Wtr. Auth. Swr. Rev. Bonds, (Brazos Presbyterian Homes, Inc.), Ser. C, 5.00%, 7/1/36	A+	7,780,000	8,605,770
Karegnondi, Wtr. Auth. Rev. Bonds
(Wtr. Supply Syst.), Ser. A, 5.25%, 11/1/31	A2	250,000	263,358
(Wtr. Supply Syst.), Ser. A, 5.25%, 11/1/30	A2	3,000,000	3,160,301
5.00%, 11/1/36	A	1,285,000	1,456,241
5.00%, 11/1/34	A	1,600,000	1,815,897
5.00%, 11/1/31	A	1,100,000	1,252,123
Kentwood, Econ. Dev. Corp. Rev. Bonds, (Holland Home Oblig. Group)
5.625%, 11/15/32 (Prerefunded 5/15/22)	BBB−/F	350,000	351,849
5.00%, 11/15/37	BBB−/F	2,250,000	2,411,388
4.00%, 11/15/43	BBB−/F	1,820,000	1,850,451
4.00%, 11/15/31	BBB−/F	495,000	515,457
Kentwood, Pub. School G.O. Bonds, (School Bldg. & Site), 5.00%, 5/1/41	AA−	250,000	273,491
Lansing, School Dist. G.O. Bonds, (School Bldg. & Site), Ser. I, Q-SBLF, 5.00%, 5/1/41	AA	225,000	246,142
Lincoln, Cons. School Dist. G.O. Bonds, Ser. A, AGM, Q-SBLF, 5.00%, 5/1/40	AA	200,000	218,226
Livonia, Pub. School Dist. G.O. Bonds, AGM, 5.00%, 5/1/45	AA	200,000	219,199
MI State Fin. Auth. Rev. Bonds
(Detroit Pub. Ltg. Auth.), Ser. B, 5.00%, 7/1/44	BBB−	1,150,000	1,180,846
Ser. H-1, 5.00%, 10/1/39 (Prerefunded 10/1/24)	AA−	5,250,000	5,616,971
(Local Govt. Loan Program — Detroit Wtr. & Swr. Dept. (DWSD)), Ser. D-2, 5.00%, 7/1/34	A+	400,000	432,151
(Local Govt. Loan Program Pub. Ltg. Auth.), Ser. B, 5.00%, 7/1/34	BBB−	500,000	517,201
(Detroit Wtr. & Swr.), Ser. C-6, 5.00%, 7/1/33	AA−	270,000	285,772
Ser. H-1, 5.00%, 10/1/30	AA−	500,000	536,463
(Detroit), Ser. C-3, 5.00%, 4/1/26	Aa2	1,000,000	1,106,741
(Detroit), Ser. C-3, 5.00%, 4/1/24	Aa2	500,000	528,205
(Local Govt. Loan Program), Ser. F1, 4.50%, 10/1/29	BBB−	850,000	872,253
(Wayne Cnty.), BAM, 4.00%, 11/1/55	AA	4,000,000	4,285,494
(Trinity Health Corp. Oblig. Group), Ser. A, 4.00%, 12/1/49 T	AA−	4,100,000	4,229,724
(Tobacco Settlement), Ser. A-1, 2.326%, 6/1/30	A	2,674,250	2,626,765

26 Tax Exempt Income Fund

MUNICIPAL BONDS AND NOTES (106.0%)* cont.	Rating**	Principal amount	Value
Michigan cont.
MI State Fin. Auth. Ltd. Oblig. Rev. Bonds
(Lawrence Technological U.), 5.25%, 2/1/32	BBB−	$1,855,000	$1,992,891
(Lawrence Technological U.), 5.00%, 2/1/47	BBB−	3,195,000	3,349,493
(College for Creative Studies), 5.00%, 12/1/45	BBB+	250,000	254,133
MI State Hsg. Dev. Auth. Rev. Bonds, (Rental Hsg.)
Ser. A, 4.625%, 10/1/39	AA	225,000	228,556
Ser. A, 4.45%, 10/1/34	AA	100,000	101,637
Ser. D, 3.95%, 10/1/37 (Prerefunded 4/1/22)	AA	1,050,000	1,050,000
Oakland U. Rev. Bonds
5.00%, 3/1/39	A1	2,000,000	2,094,407
Ser. A, 5.00%, 3/1/33 (Prerefunded 3/1/23)	A1	500,000	514,981
5.00%, 3/1/32	A1	130,000	136,684
Pontiac City, G.O. Bonds, (Pontiac School Dist.), Q-SBLF, 4.00%, 5/1/38	Aa1	2,000,000	2,168,789
Rochester, Cmnty. School Dist. G.O. Bonds, Ser. I, 5.00%, 5/1/36	AA	250,000	276,041
Warren, Cons. School Dist. G.O. Bonds, Ser. A, Q-SBLF, 5.00%, 5/1/35	AA	350,000	387,895
			67,715,670
Minnesota (0.6%)
Duluth, Econ. Dev. Auth. Rev. Bonds, (Benedictine Hlth. Syst. Oblig. Group), Ser. A
4.00%, 7/1/36	BB/P	1,250,000	1,240,550
4.00%, 7/1/31	BB/P	1,000,000	1,009,354
Duluth, Econ. Dev. Auth. Hlth. Care Fac. Rev. Bonds, (St. Luke’s Hosp. of Duluth Oblig. Group)
4.00%, 6/15/36	BBB−	1,195,000	1,263,792
4.00%, 6/15/34	BBB−	1,025,000	1,086,646
			4,600,342
Mississippi (1.1%)
MS Bus. Fin. Comm. VRDN (Chevron USA, Inc.), Ser. C, 0.37%, 12/1/30	VMIG 1	2,930,000	2,930,000
MS State Bus. Fin. Corp. Rev. Bonds, (System Energy Resources, Inc.)
2.50%, 4/1/22	BBB+	2,450,000	2,450,000
2.375%, 6/1/44	A	3,075,000	2,391,690
MS State Bus. Fin. Corp. Sol. Waste Disp. Mandatory Put Bonds (6/3/24), (Waste Management, Inc.), 2.20%, 3/1/27	A−	1,250,000	1,240,306
			9,011,996
Missouri (1.1%)
Kansas City, Indl. Dev. Auth. Arpt. Special Oblig. Rev. Bonds, AGM, 4.00%, 3/1/57	AA	5,000,000	5,106,162
St. Louis, Muni. Fin. Corp. Rev. Bonds, AGM
5.00%, 10/1/49	AA	2,250,000	2,573,457
5.00%, 10/1/40	AA	1,000,000	1,159,771
			8,839,390
Montana (0.1%)
MT State Fac. Fin. Auth. Rev. Bonds, (SCL Hlth. Syst.), Ser. A, 4.00%, 1/1/37	Aa3	600,000	641,512
			641,512

Tax Exempt Income Fund 27

MUNICIPAL BONDS AND NOTES (106.0%)* cont.	Rating**	Principal amount	Value
Nebraska (1.5%)
Central Plains Energy Project Gas Supply Mandatory Put Bonds (8/1/25), 4.00%, 12/1/49	Aa1	$3,250,000	$3,408,304
Central Plains, Energy Mandatory Put Bonds (1/1/24), (No. 4), 5.00%, 3/1/50	A2	8,050,000	8,373,740
			11,782,044
Nevada (0.3%)
Sparks, Tourism Impt. Dist. No. 1 144A Rev. Bonds, Ser. A
2.75%, 6/15/28	Ba2	1,800,000	1,752,203
2.50%, 6/15/24	Ba2	500,000	496,709
			2,248,912
New Hampshire (1.4%)
National Fin. Auth. Hosp. Rev. Bonds, (St. Luke’s Hosp. Oblig. Group)
4.00%, 8/15/41	A3	1,000,000	1,067,933
4.00%, 8/15/39	A3	1,100,000	1,178,471
4.00%, 8/15/38	A3	1,000,000	1,073,169
4.00%, 8/15/36	A3	600,000	646,019
NH State Hlth. & Ed. Fac. Auth. Rev. Bonds
(Kendel at Hanover), 5.00%, 10/1/46	BBB+/F	625,000	668,748
(Catholic Med. Ctr.), 5.00%, 7/1/44	BBB+	1,500,000	1,638,448
(Southern NH Med. Ctr.), 5.00%, 10/1/37	A−	4,500,000	4,925,556
			11,198,344
New Jersey (4.4%)
NJ State Econ. Dev. Auth. Rev. Bonds
(Provident Group-Montclair State U. Student Hsg. & Properties), 5.00%, 6/1/37	AA	1,250,000	1,402,140
Ser. B, 5.00%, 11/1/26	A3	5,400,000	5,980,098
NJ State Econ. Dev. Auth. Special Fac. Rev. Bonds, (Port Newark Container Term., LLC), 5.00%, 10/1/37	Baa2	3,000,000	3,260,526
NJ State Hlth. Care Fac. Fin. Auth. VRDN, (Virtua Hlth.), Ser. C, 0.34%, 7/1/43	A-1	1,000,000	1,000,000
NJ State Trans. Trust Fund Auth. Rev. Bonds
Ser. AA, 5.00%, 6/15/38 ##	A3	1,400,000	1,592,011
Ser. AA, 5.00%, 6/15/35 ##	A3	3,000,000	3,436,640
Ser. A, 4.00%, 6/15/41 ##	A3	5,500,000	5,632,521
(Trans. Syst.), Ser. C, AMBAC, zero %, 12/15/24	A3	8,760,000	8,153,261
Tobacco Settlement Fin. Corp. Rev. Bonds, Ser. A, 5.00%, 6/1/35	A−	4,000,000	4,425,388
			34,882,585
New Mexico (0.5%)
Farmington, Poll. Control Rev. Bonds, (Pub. Service Co. of NM), Ser. B, 2.15%, 4/1/33	Baa2	2,000,000	1,764,072
Sante Fe, Retirement Fac. Rev. Bonds, (El Castillo Retirement Res.), 5.00%, 5/15/32	BB+/F	2,155,000	2,158,377
			3,922,449

28 Tax Exempt Income Fund

MUNICIPAL BONDS AND NOTES (106.0%)* cont.	Rating**	Principal amount	Value
New York (7.5%)
Brookhaven, Local Dev. Corp. Rev. Bonds, (Brookhaven Memorial Hosp. Med. Ctr., Inc. Oblig. Group), 4.50%, 10/1/25	BBB−	$2,185,000	$2,198,122
Metro. Trans. Auth. Dedicated Tax Mandatory Put Bonds (6/1/22), Ser. A-2A, 0.96%, 11/1/26	AA	3,655,000	3,655,219
NY City, G.O. Bonds, Ser. D-1, 4.00%, 3/1/44	Aa2	3,500,000	3,652,184
NY City, VRDN, Ser. I-4, 0.36%, 4/1/36	VMIG 1	6,000,000	6,000,000
NY City, Muni. Wtr. & Swr. Syst. Fin. Auth. Rev. Bonds, (2nd Gen. Resolution), 5.00%, 6/15/46	Aa1	2,000,000	2,152,969
NY City, Muni. Wtr. & Swr. Syst. Fin. Auth. VRDN, 0.36%, 6/15/49	VMIG 1	4,990,000	4,990,000
NY City, Transitional Fin. Auth. Rev. Bonds, Ser. F-1
5.00%, 2/1/42	AAA	3,500,000	4,055,135
5.00%, 2/1/41	AAA	1,855,000	2,153,636
5.00%, 2/1/40	AAA	1,000,000	1,162,760
5.00%, 2/1/39	AAA	1,000,000	1,165,660
NY State Dorm. Auth. Personal Income Tax Rev. Bonds, Ser. A
5.00%, 3/15/46	AA+	5,000,000	5,839,169
4.00%, 3/15/44	Aa2	8,545,000	8,964,213
NY State Trans. Dev. Corp. Exempt Fac. Rev. Bonds, (Empire State Thruway Partners, LLC.), 4.00%, 4/30/53	BBB−/F	5,000,000	5,112,759
NY State Trans. Special Fac. Dev. Corp. Rev. Bonds, (Laguardia Arpt. Term. B Redev. Program), Ser. A, 5.00%, 7/1/41	Baa3	2,000,000	2,092,828
Port Auth. of NY & NJ Rev. Bonds
Ser. 207, 5.00%, 9/15/31	Aa3	3,800,000	4,270,461
Ser. 172nd, 4.50%, 4/1/37	Aa3	1,940,000	1,944,643
			59,409,758
North Carolina (1.7%)
Charlotte-Mecklenburg, Hosp. Auth. Hlth. Care Syst. VRDN (Atrium Hlth. Oblig. Group), Ser. E, 0.34%, 1/15/42	VMIG 1	9,745,000	9,745,000
NC State Med. Care Comm. Hlth. Care Fac. Rev. Bonds, (Lutheran Svcs. for the Aging, Inc. Oblig. Group)
4.00%, 3/1/51	BB/P	2,000,000	1,794,386
4.00%, 3/1/41	BB/P	1,050,000	991,268
4.00%, 3/1/36	BB/P	900,000	872,845
			13,403,499
North Dakota (0.2%)
Grand Forks, Hlth. Care Syst. Rev. Bonds, (Altru Hlth. Syst. Oblig. Group), AGM, 3.00%, 12/1/46	AA	2,000,000	1,781,287
			1,781,287
Ohio (4.0%)
Akron, Income Tax Rev. Bonds
4.00%, 12/1/41	AA−	750,000	798,281
4.00%, 12/1/40	AA−	1,345,000	1,433,413
4.00%, 12/1/38	AA−	770,000	822,015

Tax Exempt Income Fund 29

MUNICIPAL BONDS AND NOTES (106.0%)* cont.	Rating**	Principal amount	Value
Ohio cont.
Cleveland-Cuyahoga Cnty., Port Auth. Cultural Fac. Rev. Bonds
(Playhouse Square Foundation), 5.50%, 12/1/53	BB+	$2,500,000	$2,691,432
(Cleveland Museum of Natural History (The)), 5.00%, 7/1/36	A3	300,000	352,340
(Cleveland Museum of Natural History (The)), 5.00%, 7/1/35	A3	200,000	235,132
(Cleveland Museum of Natural History (The)), 5.00%, 7/1/34	A3	300,000	353,113
(Cleveland Museum of Natural History (The)), 4.00%, 7/1/46	A3	950,000	1,020,378
(Cleveland Museum of Natural History (The)), 4.00%, 7/1/41	A3	230,000	249,674
(Cleveland Museum of Natural History (The)), 4.00%, 7/1/40	A3	250,000	271,790
(Cleveland Museum of Natural History (The)), 4.00%, 7/1/39	A3	200,000	217,794
(Cleveland Museum of Natural History (The)), 4.00%, 7/1/38	A3	250,000	272,704
(Cleveland Museum of Natural History (The)), 4.00%, 7/1/37	A3	200,000	218,536
Columbus, Swr. VRDN, Ser. B, 0.48%, 6/1/32	VMIG 1	1,430,000	1,430,000
Confluence Cmnty. Auth. Rev. Bonds, (Stadium & Sports)
4.00%, 5/1/39	AA+	750,000	800,169
4.00%, 5/1/34	AA+	1,280,000	1,373,006
4.00%, 5/1/33	AA+	560,000	603,221
Franklin Cnty., Hlth. Care Fac. Rev. Bonds, (Ohio Living)
6.125%, 7/1/40 (Prerefunded 7/1/22)	BBB/F	940,000	951,321
6.125%, 7/1/40 (Prerefunded 7/1/22)	AAA/P	60,000	60,723
6.00%, 7/1/35 (Prerefunded 7/1/22)	BBB/F	1,765,000	1,785,727
6.00%, 7/1/35 (Prerefunded 7/1/22)	AAA/P	110,000	111,292
Hamilton Cnty., Hlth. Care Rev. Bonds, (Life Enriching Cmntys.), 5.00%, 1/1/32	BBB−/F	1,000,000	1,013,261
Lancaster, Port Auth. Mandatory Put Bonds (2/1/25), Ser. A, 5.00%, 8/1/49	Aa1	4,250,000	4,547,005
Middleburg Heights, Hosp. Rev. Bonds, (Southwest Gen. Hlth. Ctr.), 5.00%, 8/1/47 (Prerefunded 8/1/22)	A2	1,500,000	1,519,340
OH State Higher Edl. Fac. Comm. Rev. Bonds, (Kenyon College), 5.00%, 7/1/37 ##	A	1,725,000	1,895,792
OH State Hosp. Rev. Bonds, (Premier Hlth. Partners Oblig. Group)
4.00%, 11/15/41	Baa1	455,000	477,097
4.00%, 11/15/39	Baa1	1,325,000	1,393,465
OH State Hosp. Fac. Rev. Bonds, (Cleveland Clinic Hlth. Syst.), Ser. A, U.S. Govt. Coll., 4.00%, 1/1/43 (Prerefunded 1/1/28)	AAA/P	15,000	16,446
OH State Private Activity Rev. Bonds, (Portsmouth Bypass), AGM, 5.00%, 12/31/35	AA	1,750,000	1,867,983

30 Tax Exempt Income Fund

MUNICIPAL BONDS AND NOTES (106.0%)* cont.	Rating**	Principal amount	Value
Ohio cont.
Scioto Cnty., Hosp. Rev. Bonds, (Southern OH Med. Ctr.)
5.00%, 2/15/34	A3	$645,000	$702,573
5.00%, 2/15/33	A3	355,000	386,961
Southeastern OH Port Auth. Hosp. Fac. Rev. Bonds
5.75%, 12/1/32	BB−/F	1,350,000	1,371,654
(Memorial Hlth. Syst. Oblig. Group), 5.50%, 12/1/43	BB−/F	145,000	151,156
			31,394,794
Oregon (0.5%)
Gilliam Cnty., Solid Waste Disp. 144A Mandatory Put Bonds (5/2/22), (Waste Mgt., Inc.), Ser. A, 2.40%, 8/1/25	A−	1,625,000	1,625,413
Portland, Rev. Bonds, Ser. C, 7.701%, 6/1/22	Aaa	2,020,000	2,042,179
			3,667,592
Pennsylvania (4.8%)
Allegheny Cnty., Arpt. Auth. Rev. Bonds, Ser. A
5.00%, 1/1/56	AA	4,075,000	4,525,988
5.00%, 1/1/51	AA	5,225,000	5,819,090
4.00%, 1/1/56	AA	3,500,000	3,567,785
Centre Ctny., Hosp. Auth. Rev. Bonds, (Mount Nittany Med. Ctr.), Ser. A, 5.00%, 11/15/41 (Prerefunded 11/15/25)	A+	500,000	550,234
Chester Cnty., Indl. Dev. Auth. Rev. Bonds, (University Student Hsg, LLC), 5.00%, 8/1/30	Ba2	960,000	973,953
Cumberland Cnty., Muni. Auth. Rev. Bonds, (Diakon Lutheran Social Ministries)
5.00%, 1/1/32	BBB+/F	120,000	129,002
5.00%, 1/1/31	BBB+/F	100,000	107,612
East Hempfield Twp., Indl. Dev. Auth. Rev. Bonds, (Millersville U. Student Hsg. & Svcs., Inc.), 5.00%, 7/1/29 (Prerefunded 7/1/24)	AAA/P	500,000	533,622
PA State Tpk. Comm. Rev. Bonds
Ser. B-1, 5.00%, 6/1/42	A3	1,725,000	1,904,645
Ser. 2nd, 5.00%, 12/1/36	A3	2,000,000	2,241,371
4.90%, 12/1/44	A2	5,000,000	5,438,112
Ser. A, 4.00%, 12/1/50	A	2,160,000	2,223,304
Ser. B, 3.00%, 12/1/51	A	2,000,000	1,715,707
Philadelphia, Auth. for Indl. Dev. Rev. Bonds, (Independence Charter School-West)
5.00%, 6/15/39	BB/P	500,000	519,453
4.00%, 6/15/29	BB/P	350,000	356,745
Philadelphia, Gas Wks. Rev. Bonds
5.00%, 8/1/32	A	1,000,000	1,085,274
5.00%, 8/1/31	A	1,000,000	1,085,609
South Central PA, Gen. Auth. Rev. Bonds, (WellSpan Health Oblig. Group), Ser. A, 4.00%, 6/1/49	Aa3	5,000,000	5,308,409
			38,085,915

Tax Exempt Income Fund 31

MUNICIPAL BONDS AND NOTES (106.0%)* cont.	Rating**	Principal amount	Value
Puerto Rico (0.4%)
Cmnwlth. of PR, Sales Tax Fin. Corp. Rev. Bonds, Ser. A-1, 5.00%, 7/1/58	BB−/P	$2,900,000	$3,090,529
			3,090,529
Rhode Island (0.6%)
RI Hlth. & Edl. Bldg. Corp. Rev. Bonds, (Lifespan Oblig. Group-Hosp. Fin.), 5.00%, 5/15/33	BBB+	1,000,000	1,086,488
Tobacco Settlement Fin. Corp. Rev. Bonds, Ser. B, 5.00%, 6/1/50	BBB−/P	3,250,000	3,423,426
			4,509,914
South Carolina (1.7%)
Charleston Cnty., Arpt. Dist. Syst. Rev. Bonds, Ser. A, 5.25%, 7/1/33	A1	5,320,000	5,501,904
Lexington Cnty., Hlth. Svcs. Dist. Rev. Bonds, (LexMed Oblig. Group)
4.00%, 11/1/32	A1	750,000	799,434
4.00%, 11/1/31	A1	750,000	800,017
Myrtle Beach, Tax Alloc. Bonds, (Myrtle Beach Air Force Base Redev.)
5.00%, 10/1/29	A2	1,000,000	1,107,151
5.00%, 10/1/28	A2	425,000	471,595
SC State Jobs Econ. Dev. Auth. Hosp. VRDN (Prisma Hlth. Oblig. Group), Ser. B, 0.38%, 5/1/48	VMIG 1	500,000	500,000
SC State Pub. Svcs. Auth. Rev. Bonds, Ser. A, 5.00%, 12/1/36	A2	4,000,000	4,401,397
			13,581,498
South Dakota (0.2%)
Lincoln Cnty., Econ. Dev. Rev. Bonds, (Augustana College Assn. (The))
4.00%, 8/1/56	BBB−	1,000,000	964,187
4.00%, 8/1/41	BBB−	500,000	502,067
			1,466,254
Tennessee (0.7%)
Chattanooga, Hlth. Edl. & Hsg. Fac. Rev. Bonds, (CommonSpirit Health Oblig. Group)
Ser. A-2, 5.00%, 8/1/49 T	A−	775,000	863,040
Ser. A-2, 5.00%, 8/1/44 T	A−	425,000	476,094
Ser. A-1, 4.00%, 8/1/44 T	A−	875,000	912,870
Ser. A-1, 4.00%, 8/1/38 T	A−	425,000	446,361
Ser. A-1, 4.00%, 8/1/37 T	A−	425,000	446,985
Memphis-Shelby Cnty., Arpt. Auth. Rev. Bonds, Ser. A, 5.00%, 7/1/45	A2	2,000,000	2,250,786
			5,396,136
Texas (7.9%)
Arlington, Higher Ed. Fin. Corp. Rev. Bonds
(Riverwalk Education Foundation, Inc.), PSFG, 4.00%, 8/15/44	AAA	4,600,000	4,927,308
(Uplift Ed.), Ser. A, PSFG, 4.00%, 12/1/31	AAA	365,000	391,977
Clifton, Higher Ed. Fin. Corp. Rev. Bonds, (IDEA Pub. Schools)
Ser. B, PSFG, 5.00%, 8/15/27	A−	375,000	410,390
Ser. T, PSFG, 4.00%, 8/15/50	AAA	4,000,000	4,323,373

32 Tax Exempt Income Fund

MUNICIPAL BONDS AND NOTES (106.0%)* cont.	Rating**	Principal amount	Value
Texas cont.
Clifton, Higher Ed. Fin. Corp. Rev. Bonds, (IDEA Pub. Schools)
Ser. T, PSFG, 4.00%, 8/15/42	AAA	$1,400,000	$1,534,077
Ser. T, PSFG, 4.00%, 8/15/40	AAA	1,500,000	1,650,023
Ser. T, PSFG, 4.00%, 8/15/39	AAA	1,500,000	1,654,464
PSFG, 4.00%, 8/15/31	AAA	2,000,000	2,168,673
Clifton, Higher Ed. Fin. Corp. Ed. Rev. Bonds, (IDEA Pub. Schools), PSFG, 5.00%, 8/15/33	AAA	1,000,000	1,086,867
Harris Cnty., Cultural Ed. Fac. Fin. Corp. Rev. Bonds, (YMCA of the Greater Houston Area), Ser. A, 5.00%, 6/1/28	Baa2	1,300,000	1,315,386
Houston, Util. Syst. Rev. Bonds, Ser. D, 5.00%, 11/15/39	Aa2	2,285,000	2,440,367
Irving, Hotel Occupancy Tax Rev. Bonds
5.00%, 8/15/39	BBB+	600,000	664,300
5.00%, 8/15/36	BBB+	430,000	478,265
5.00%, 8/15/34	BBB+	300,000	335,106
5.00%, 8/15/33	BBB+	240,000	268,378
5.00%, 8/15/31	BBB+	100,000	112,291
Lake Houston Redev. Auth. Rev. Bonds, (City of Houston, Reinvestment Zone No. 10)
4.00%, 9/1/36	BBB−	175,000	183,355
4.00%, 9/1/35	BBB−	175,000	183,556
3.00%, 9/1/47	BBB−	600,000	503,981
3.00%, 9/1/44	BBB−	500,000	431,219
3.00%, 9/1/40	BBB−	225,000	200,577
3.00%, 9/1/39	BBB−	250,000	223,943
3.00%, 9/1/38	BBB−	200,000	180,511
3.00%, 9/1/37	BBB−	220,000	200,294
3.00%, 9/1/34	BBB−	150,000	140,429
Love Field Arpt. Modernization Corp. Rev. Bonds, AGM, 4.00%, 11/1/37	AA	7,000,000	7,258,465
Lower CO River Auth. Transmission Svcs. Contract Corp. Rev. Bonds, 5.00%, 5/15/40	A	750,000	806,934
Matagorda Cnty., Poll. Control Rev. Bonds, (Dist. No. 1), Ser. A, AMBAC, 4.40%, 5/1/30	A−	2,250,000	2,463,039
New Hope, Cultural Ed. Fac. Fin. Corp. Rev. Bonds
(Wesleyan Homes, Inc.), 5.50%, 1/1/43	BB−/P	750,000	753,524
(CHF-Stephenville, LLC), 5.375%, 4/1/28 (Prerefunded 4/1/23)	AAA/P	1,150,000	1,192,333
(CHF-Collegiate Hsg. Stephenville III, LLC), 5.00%, 4/1/47 (Prerefunded 4/1/25)	AAA/P	3,155,000	3,430,656
(Westminster Manor), 4.00%, 11/1/55	BBB/F	1,250,000	1,250,869
(TX Woman’s U. CHF-Collegiate Hsg. Dining), Ser. B-1, AGM, 4.00%, 7/1/48	AA	1,705,000	1,786,696
(Children’s Hlth. Syst. of TX), Ser. A, 4.00%, 8/15/34	Aa3	1,000,000	1,061,769
North TX, Tollway Auth. Rev. Bonds, (1st Tier), Ser. I, 6.50%, 1/1/43 (Prerefunded 1/1/25)	A1	9,700,000	10,860,781
SA Energy Acquisition Pub. Fac. Corp. Rev. Bonds, (Gas Supply), 5.50%, 8/1/25	A2	250,000	273,950

Tax Exempt Income Fund 33

MUNICIPAL BONDS AND NOTES (106.0%)* cont.	Rating**	Principal amount	Value
Texas cont.
Tarrant Cnty., Cultural Ed. Fac. Fin. Corp. Retirement Fac. Rev. Bonds, (Buckner Retirement Svcs., Inc.), 5.00%, 11/15/37	A/F	$2,750,000	$3,037,871
Temple, Tax Increment Tax Alloc. Bonds, (Reinvestment Zone No. 1), Ser. A, BAM
4.00%, 8/1/40	AA	600,000	640,845
4.00%, 8/1/38	AA	340,000	364,001
4.00%, 8/1/37	AA	200,000	214,453
4.00%, 8/1/36	AA	225,000	241,269
4.00%, 8/1/35	AA	220,000	235,969
4.00%, 8/1/34	AA	260,000	279,571
			62,162,105
Utah (1.7%)
Murray City, Hosp. VRDN, (IHC Hlth. Svcs., Inc.), Ser. C, 0.30%, 5/15/36	A-1+	7,915,000	7,915,000
UT Infrastructure Agcy. Rev. Bonds, Ser. A
4.00%, 10/15/41	BBB−/F	500,000	517,797
4.00%, 10/15/38	BBB−/F	500,000	519,460
4.00%, 10/15/36	BBB−/F	300,000	313,076
4.00%, 10/15/34	BBB−/F	800,000	837,959
4.00%, 10/15/32	BBB−/F	500,000	526,879
3.00%, 10/15/45	BBB−/F	1,000,000	846,217
UT State Charter School Fin. Auth. Rev. Bonds, (UT Charter Academies, Inc.)
5.00%, 10/15/38	AA	720,000	794,965
5.00%, 10/15/33	AA	420,000	465,992
5.00%, 10/15/31	AA	530,000	589,471
			13,326,816
Virginia (2.2%)
Fairfax Cnty., Econ. Dev. Auth. Res. Care Fac. Rev. Bonds, (Goodwin House, Inc.), Ser. A, 5.00%, 10/1/42	BBB+/F	625,000	664,996
Federal Home Loan Mortgage Corporation Rev. Bonds, Ser. M-053, Class A, 2.55%, 6/15/35	AA+	7,385,000	6,992,780
Henrico Cnty., Indl. Dev. Auth. Rev. Bonds, AGM, 5.929%, 8/23/27 (Escrowed to maturity)	A1	8,900,000	9,842,978
			17,500,754
Washington (0.6%)
Port of Seattle, Rev. Bonds, Ser. C, 5.00%, 4/1/40	A1	1,000,000	1,055,170
WA State Hsg. Fin. Comm. Rev. Bonds, (Social Certif.), Ser. A-1, 3.50%, 12/20/35	BBB+	4,046,693	4,001,298
			5,056,468
Wisconsin (1.1%)
Pub. Fin. Auth. Rev. Bonds, (Roseman U. of Hlth. Sciences), 4.00%, 4/1/42	BB	850,000	817,906
Pub. Fin. Auth. Arpt. Fac. Rev. Bonds, (Sr. Oblig. Group), 5.25%, 7/1/28	BBB+	1,000,000	1,005,628
Pub. Fin. Auth. Conference Ctr. & Hotel Rev. Bonds, (U. of NC Charlotte Foundation), Ser. A, 4.00%, 9/1/56	BB+/P	2,000,000	1,705,672
WI Pub. Fin. Auth. Hotel Rev. Bonds, (Grand Hyatt), 5.00%, 2/1/62 ##	BBB−	2,000,000	2,091,560

34 Tax Exempt Income Fund

MUNICIPAL BONDS AND NOTES (106.0%)* cont.	Rating**	Principal amount	Value
Wisconsin cont.
WI State Hlth. & Edl. Fac. Auth. Rev. Bonds
(Hmong American Peace Academy, Ltd.), 5.00%, 3/15/50	BBB	$1,375,000	$1,504,761
(Three Pillars Sr. Living), 5.00%, 8/15/28 (Prerefunded 8/15/23)	AAA/P	1,040,000	1,085,816
(Hmong American Peace Academy, Ltd.), 4.00%, 3/15/30	BBB	400,000	417,174
			8,628,517
Total municipal bonds and notes (cost $843,138,617)			$838,676,811

SHORT-TERM INVESTMENTS (1.4%)*		Principal amount/ shares	Value
Putnam Short Term Investment Fund Class P 0.39% L	Shares	9,494,643	$9,494,643
U.S. Treasury Bills 0.246%, 5/3/22 #		$600,000	599,929
U.S. Treasury Bills 0.053%, 4/7/22		127,000	126,997
U.S. Treasury Bills 0.038%, 4/21/22 ∆		900,000	899,939
Total short-term investments (cost $11,121,521)			$11,121,508

TOTAL INVESTMENTS
Total investments (cost $854,260,138)	$849,798,319

Notes to the fund’s portfolio
	Unless noted otherwise, the notes to the fund’s portfolio are for the close of the fund’s reporting period, which ran from October 1, 2021 through March 31, 2022 (the reporting period). Within the following notes to the portfolio, references to “Putnam Management” represent Putnam Investment Management, LLC, the fund’s manager, an indirect wholly-owned subsidiary of Putnam Investments, LLC and references to “ASC 820” represent Accounting Standards Codification 820 Fair Value Measurements and Disclosures.
*	Percentages indicated are based on net assets of $791,554,215.
**	The Moody’s, Standard & Poor’s or Fitch ratings indicated are believed to be the most recent ratings available at the close of the reporting period for the securities listed. Ratings are generally ascribed to securities at the time of issuance. While the agencies may from time to time revise such ratings, they undertake no obligation to do so, and the ratings do not necessarily represent what the agencies would ascribe to these securities at the close of the reporting period. Securities rated by Fitch are indicated by “/F.” Securities rated by Putnam are indicated by “/P.” The Putnam rating categories are comparable to the Standard & Poor’s classifications. If a security is insured, it will usually be rated by the ratings organizations based on the financial strength of the insurer. For further details regarding security ratings, please see the Statement of Additional Information.
#	This security, in part or in entirety, was pledged and segregated with the broker to cover margin requirements for futures contracts at the close of the reporting period. Collateral at period end totaled $295,970 and is included in Investments in securities on the Statement of assets and liabilities (Notes 1 and 8).
∆	This security, in part or in entirety, was pledged and segregated with the custodian for collateral on certain derivative contracts at the close of the reporting period. Collateral at period end totaled $193,981 and is included in Investments in securities on the Statement of assets and liabilities (Notes 1 and 8).
##	Forward commitment, in part or in entirety (Note 1).
L	Affiliated company (Note 5). The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period.
T	Underlying security in a tender option bond transaction. This security has been segregated as collateral for financing transactions.
	At the close of the reporting period, the fund maintained liquid assets totaling $91,924,108 to cover certain derivative contracts, tender option bonds and the settlement of certain securities.

Tax Exempt Income Fund 35

Unless otherwise noted, the rates quoted in Short-term investments security descriptions represent the weighted average yield to maturity.
144A after the name of an issuer represents securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
On Mandatory Put Bonds, the rates shown are the current interest rates at the close of the reporting period and the dates shown represent the next mandatory put dates. Rates are set by remarketing agents and may take into consideration market supply and demand, credit quality and the current SIFMA Municipal Swap Index, 1 Month US LIBOR or 3 Month US LIBOR rates, which were 0.51%, 0.45% and 0.96%, respectively, as of the close of the reporting period.
The dates shown parenthetically on prerefunded bonds represent the next prerefunding dates.
The dates shown on debt obligations are the original maturity dates.
The fund had the following sector concentrations greater than 10% at the close of the reporting period (as a percentage of net assets):
Health care	22.4%
Transportation	14.9
Utilities	10.6

FUTURES CONTRACTS OUTSTANDING at 3/31/22 (Unaudited)
	Number of contracts	Notional amount	Value	Expiration date	Unrealized appreciation/ (depreciation)
U.S. Treasury Bond 30 yr (Short)	23	$3,451,438	$3,451,438	Jun-22	$125,550
U.S. Treasury Bond Ultra 30 yr (Short)	14	2,479,750	2,479,750	Jun-22	(16,219)
U.S. Treasury Note Ultra 10 yr (Short)	40	5,418,750	5,418,750	Jun-22	198,964
Unrealized appreciation					324,514
Unrealized (depreciation)					(16,219)
Total					$308,295

OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 3/31/22 (Unaudited)
Swap counterparty/ Notional amount		Value	Upfront premium received (paid)	Termination date	Payments received (paid) by fund	Total return received by or paid by fund	Unrealized appreciation/ (depreciation)
Citibank, N.A.
	$6,930,000	$42,529	$—	6/28/22	—	2.15% minus Municipal Market Data Index AAA municipal yields 5 Year rate — At maturity	$42,529
	6,930,000	41,836	—	6/30/22	—	2.15% minus Municipal Market Data Index AAA municipal yields 5 Year rate — At maturity	41,836
	1,733,000	55,309	—	6/30/22	—	2.74% minus Municipal Market Data Index AAA municipal yields 30 Year rate — At maturity	(55,309)

36 Tax Exempt Income Fund

OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 3/31/22 (Unaudited) cont.
Swap counterparty/ Notional amount		Value	Upfront premium received (paid)	Termination date	Payments received (paid) by fund	Total return received by or paid by fund	Unrealized appreciation/ (depreciation)
Citibank, N.A. cont.
	$1,733,000	$55,992	$—	6/28/22	—	2.74% minus Municipal Market Data Index AAA municipal yields 30 Year rate — At maturity	$(55,992)
Morgan Stanley & Co. International PLC
	7,400,000	324,290	—	5/24/22	—	1.75% minus Municipal Market Data Index AAA municipal yields 10 Year rate — At maturity	(324,290)
	7,400,000	325,689	—	5/26/22	—	1.75% minus Municipal Market Data Index AAA municipal yields 10 Year rate — At maturity	(325,687)
	3,700,000	292,511	—	5/26/22	—	2.15% minus Municipal Market Data Index AAA municipal yields 30 Year rate — At maturity	292,511
	3,700,000	291,075	—	5/24/22	—	2.15% minus Municipal Market Data Index AAA municipal yields 30 Year rate — At maturity	291,075
Upfront premium received			—		Unrealized appreciation		667,951
Upfront premium (paid)			—		Unrealized (depreciation)		(761,278)
Total			$—		Total	$(93,327)

Tax Exempt Income Fund 37

ASC 820 establishes a three-level hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of the fund’s investments. The three levels are defined as follows:

Level 1: Valuations based on quoted prices for identical securities in active markets.

Level 2: Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3: Valuations based on inputs that are unobservable and significant to the fair value measurement.

The following is a summary of the inputs used to value the fund’s net assets as of the close of the reporting period:

		Valuation inputs
Investments in securities:	Level 1	Level 2	Level 3
Municipal bonds and notes	$—	$838,676,811	$—
Short-term investments	—	11,121,508	—
Totals by level	$—	$849,798,319	$—

		Valuation inputs
Other financial instruments:	Level 1	Level 2	Level 3
Futures contracts	$308,295	$—	$—
Total return swap contracts	—	(93,327)	—
Totals by level	$308,295	$(93,327)	$—

The accompanying notes are an integral part of these financial statements.

38 Tax Exempt Income Fund

Statement of assets and liabilities 3/31/22 (Unaudited)

ASSETS
Investment in securities, at value (Note 1):
Unaffiliated issuers (identified cost $844,765,495)	$840,303,676
Affiliated issuers (identified cost $9,494,643) (Notes 1 and 5)	9,494,643
Interest and other receivables	8,751,688
Receivable for shares of the fund sold	231,362
Receivable for investments sold	4,066,828
Receivable for sales of delayed delivery securities (Note 1)	5,175,658
Unrealized appreciation on OTC swap contracts (Note 1)	667,951
Prepaid assets	53,618
Total assets	868,745,424
LIABILITIES
Payable to custodian	1,443
Payable for investments purchased	12,551,643
Payable for purchases of delayed delivery securities (Note 1)	45,594,048
Payable for shares of the fund repurchased	1,548,194
Payable for compensation of Manager (Note 2)	290,654
Payable for custodian fees (Note 2)	5,705
Payable for investor servicing fees (Note 2)	97,074
Payable for Trustee compensation and expenses (Note 2)	413,505
Payable for administrative services (Note 2)	2,567
Payable for distribution fees (Note 2)	446,046
Payable for floating rate notes issued (Note 1)	15,117,540
Payable for variation margin on futures contracts (Note 1)	45,505
Distributions payable to shareholders	207,442
Unrealized depreciation on OTC swap contracts (Note 1)	761,278
Other accrued expenses	108,565
Total liabilities	77,191,209
Net assets	$791,554,215
REPRESENTED BY
Paid-in capital (Unlimited shares authorized) (Notes 1 and 4)	$798,626,123
Total distributable earnings (Note 1)	(7,071,908)
Total — Representing net assets applicable to capital shares outstanding	$791,554,215

(Continued on next page)

Tax Exempt Income Fund 39 

Statement of assets and liabilities cont.

COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE
Net asset value and redemption price per class A share
($658,318,281 divided by 81,509,987 shares)	$8.08
Offering price per class A share (100/96.00 of $8.08)*	$8.42
Net asset value and offering price per class B share ($607,171 divided by 75,103 shares)**	$8.08
Net asset value and offering price per class C share ($12,221,506 divided by 1,508,880 shares)**	$8.10
Net asset value, offering price and redemption price per class R6 share
($5,098,817 divided by 630,027 shares)	$8.09
Net asset value, offering price and redemption price per class Y share
($115,308,440 divided by 14,238,517 shares)	$8.10

^*On single retail sales of less than $100,000. On sales of $100,000 or more the offering price is reduced.

^**Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.

The accompanying notes are an integral part of these financial statements.

40 Tax Exempt Income Fund 

Statement of operations Six months ended 3/31/22 (Unaudited)

INVESTMENT INCOME
Interest (including interest income of $27,255 from investments in affiliated issuers) (Note 5)	$12,516,778
Total investment income	12,516,778
EXPENSES
Compensation of Manager (Note 2)	1,858,468
Investor servicing fees (Note 2)	297,929
Custodian fees (Note 2)	9,602
Trustee compensation and expenses (Note 2)	16,888
Distribution fees (Note 2)	989,719
Administrative services (Note 2)	14,565
Interest and fees expense (Note 1)	77,776
Other	175,337
Total expenses	3,440,284
Expense reduction (Note 2)	(236)
Net expenses	3,440,048
Net investment income	9,076,730
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Securities from unaffiliated issuers (Notes 1 and 3)	(1,466,147)
Futures contracts (Note 1)	2,768,742
Swap contracts (Note 1)	(2,559,289)
Total net realized loss	(1,256,694)
Change in net unrealized appreciation (depreciation) on:
Securities from unaffiliated issuers	(59,869,664)
Futures contracts	(84,422)
Swap contracts	182,655
Total change in net unrealized depreciation	(59,771,431)
Net loss on investments	(61,028,125)
Net decrease in net assets resulting from operations	$(51,951,395)

The accompanying notes are an integral part of these financial statements.

Tax Exempt Income Fund 41 

Statement of changes in net assets

INCREASE (DECREASE) IN NET ASSETS	Six months ended 3/31/22*	Year ended 9/30/21
Operations
Net investment income	$9,076,730	$19,881,172
Net realized gain (loss) on investments	(1,256,694)	17,562,551
Change in net unrealized appreciation (depreciation)
of investments	(59,771,431)	712,382
Net increase (decrease) in net assets resulting
from operations	(51,951,395)	38,156,105
Distributions to shareholders (Note 1):
From ordinary income
Taxable net investment income
Class A	(127,072)	(195,902)
Class B	(123)	(267)
Class C	(2,520)	(5,129)
Class R6	(1,010)	(1,005)
Class Y	(22,030)	(30,081)
From tax-exempt net investment income
Class A	(7,321,072)	(16,450,799)
Class B	(4,670)	(14,725)
Class C	(90,286)	(246,871)
Class R6	(62,210)	(106,206)
Class Y	(1,440,128)	(2,947,997)
Net realized short-term gain on investments
Class A	(584,532)	—
Class B	(564)	—
Class C	(11,591)	—
Class R6	(4,647)	—
Class Y	(101,337)	—
From net realized long-term gain on investments
Class A	(13,342,577)	—
Class B	(12,865)	—
Class C	(264,581)	—
Class R6	(106,070)	—
Class Y	(2,313,131)	—
Decrease from capital share transactions (Note 4)	(57,678,035)	(13,904,775)
Total increase (decrease) in net assets	(135,442,446)	4,252,348
NET ASSETS
Beginning of period	926,996,661	922,744,313
End of period	$791,554,215	$926,996,661

^*Unaudited.

The accompanying notes are an integral part of these financial statements.

42 Tax Exempt Income Fund 

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Tax Exempt Income Fund 43 

Financial highlights
(For a common share outstanding throughout the period)

INVESTMENT OPERATIONS

LESS DISTRIBUTIONS

RATIOS AND SUPPLEMENTAL DATA

Ratio of net

Net asset

Net realized

Ratio

investment

value,

and unrealized

Total from

From net

From

Net asset

Total return

Net assets,

of expenses

income (loss)

Portfolio

beginning

Net investment

gain (loss)

investment

investment

net realized gain

Total

value, end

at net asset

end of period

to average

to average

turnover

Period ended­

of period­

income (loss)

on investments­

operations­

income­

on investments­

distributions

of period­

value (%)a

(in thousands)

net assets (%)b

net assets (%)

(%)

Class A

March 31, 2022**

$8.85­

.09­

(.61)

(.52)

(.09)

(.16)

(.25)

$8.08­

(6.02)*

$658,318­

.40*c

1.02*

24*

September 30, 2021­

8.68­

.19­

.17­

.36­

(.19)

—­

(.19)

8.85­

4.14­

768,286­

.80­c

2.11­

34­

September 30, 2020

8.86­

.21­

.01­

.22­

(.21)

(.19)

(.40)

8.68­

2.62­

785,840­

.80­c

2.44­

41­

September 30, 2019

8.41­

.24­

.49­

.73­

(.26)

(.02)

(.28)

8.86­

8.84­

841,144­

.78­c

2.80­

63­

September 30, 2018

8.63­

.26­

(.21)

.05­

(.27)

—­

(.27)

8.41­

.56­

815,986­

.77­

3.06­

42­

September 30, 2017

8.86­

.29­

(.22)

.07­

(.30)

—­

(.30)

8.63­

.88­

894,935­

.78­e

3.40­

35­

Class B

March 31, 2022**

$8.85­

.06­

(.61)

(.55)

(.06)

(.16)

(.22)

$8.08­

(6.33)*

$607­

.70*c

.72*

24*

September 30, 2021­

8.68­

.13­

.17­

.30­

(.13)

—­

(.13)

8.85­

3.52­

755­

1.40­c

1.52­

34­

September 30, 2020

8.86­

.15­

.02­

.17­

(.16)

(.19)

(.35)

8.68­

1.95­

1,367­

1.43­c

1.84­

41­

September 30, 2019

8.42­

.19­

.48­

.67­

(.21)

(.02)

(.23)

8.86­

8.03­

3,238­

1.41­c

2.20­

63­

September 30, 2018

8.63­

.21­

(.21)

—­d

(.21)

—­

(.21)

8.42­

.04­

4,653­

1.40­

2.43­

42­

September 30, 2017

8.86­

.24­

(.22)

.02­

(.25)

—­

(.25)

8.63­

.24­

6,786­

1.41­e

2.76­

35­

Class C

March 31, 2022**

$8.87­

.06­

(.61)

(.55)

(.06)

(.16)

(.22)

$8.10­

(6.35)*

$12,222­

.78*c

.64*

24*

September 30, 2021­

8.70­

.12­

.17­

.29­

(.12)

—­

(.12)

8.87­

3.36­

15,362­

1.55­c

1.37­

34­

September 30, 2020

8.88­

.14­

.02­

.16­

(.15)

(.19)

(.34)

8.70­

1.79­

21,434­

1.58­c

1.67­

41­

September 30, 2019

8.44­

.17­

.48­

.65­

(.19)

(.02)

(.21)

8.88­

7.85­

27,210­

1.56­c

2.03­

63­

September 30, 2018

8.65­

.19­

(.20)

(.01)

(.20)

—­

(.20)

8.44­

(.11)

30,378­

1.55­

2.28­

42­

September 30, 2017

8.88­

.22­

(.22)

—­d

(.23)

—­

(.23)

8.65­

.09­

40,251­

1.56­e

2.62­

35­

Class R6

March 31, 2022**

$8.86­

.10­

(.61)

(.51)

(.10)

(.16)

(.26)

$8.09­

(5.88)*

$5,099­

.27*c

1.15*

24*

September 30, 2021­

8.69­

.21­

.17­

.38­

(.21)

—­

(.21)

8.86­

4.42­

5,569­

.54­c

2.36­

34­

September 30, 2020

8.88­

.23­

.01­

.24­

(.24)

(.19)

(.43)

8.69­

2.76­

3,809­

.56­c

2.67­

41­

September 30, 2019

8.44­

.26­

.48­

.74­

(.28)

(.02)

(.30)

8.88­

8.97­

3,927­

.54­c

3.04­

63­

September 30, 2018 †­

8.47­

.09­

(.02)

.07­

(.10)

—­

(.10)

8.44­

.83*

10­

.19*

1.23*

42­

Class Y

March 31, 2022**

$8.87­

.10­

(.61)

(.51)

(.10)

(.16)

(.26)

$8.10­

(5.88)*

$115,308­

.28*c

1.14*

24*

September 30, 2021­

8.70­

.21­

.17­

.38­

(.21)

—­

(.21)

8.87­

4.40­

137,025­

.55­c

2.35­

34­

September 30, 2020

8.88­

.23­

.01­

.24­

(.23)

(.19)

(.42)

8.70­

2.84­

110,294­

.58­c

2.64­

41­

September 30, 2019

8.44­

.26­

.48­

.74­

(.28)

(.02)

(.30)

8.88­

8.93­

85,832­

.56­c

3.00­

63­

September 30, 2018

8.65­

.28­

(.20)

.08­

(.29)

—­

(.29)

8.44­

.89­

72,534­

.55­

3.27­

42­

September 30, 2017

8.88­

.31­

(.22)

.09­

(.32)

—­

(.32)

8.65­

1.09­

65,741­

.56­e

3.60­

35­

See notes to financial highlights at the end of this section.

The accompanying notes are an integral part of these financial statements.

44 Tax Exempt Income Fund  Tax Exempt Income Fund 45 

Financial highlights cont.

^* Not annualized.

^** Unaudited.

^† For the period May 22, 2018 (commencement of operations) to September 30, 2018.

^a Total return assumes dividend reinvestment and does not reflect the effect of sales charges.

^b Includes amounts paid through expense offset arrangements, if any (Note 2). Also excludes acquired fund fees, if any.

^c Includes interest and fee expense associated with borrowings which amounted to the following:

	Percentage of average net assets
March 31, 2022	0.01%
September 30, 2021	0.02
September 30, 2020	0.03
September 30, 2019	0.01

^d Amount represents less than $0.01 per share.

^e Includes one-time merger costs of 0.01% as a percentage of average net assets.

The accompanying notes are an integral part of these financial statements.

46 Tax Exempt Income Fund 

Notes to financial statements 3/31/22 (Unaudited)

Within the following Notes to financial statements, references to “State Street” represent State Street Bank and Trust Company, references to “the SEC” represent the Securities and Exchange Commission, references to “Putnam Management” represent Putnam Investment Management, LLC, the fund’s manager, an indirect wholly-owned subsidiary of Putnam Investments, LLC and references to “OTC”, if any, represent over-the-counter. Unless otherwise noted, the “reporting period” represents the period from October 1, 2021 through March 31, 2022.

Putnam Tax Exempt Income Fund (the fund) is a Massachusetts business trust, which is registered under the Investment Company Act of 1940, as amended, as a diversified open-end management investment company. The goal of the fund is to seek as high a level of current income exempt from federal income tax as Putnam Management believes to be consistent with preservation of capital. The fund invests mainly in bonds that pay interest that is exempt from federal income tax (but that may be subject to federal alternative minimum tax (AMT)), are investment-grade in quality, and have intermediate- to long-term maturities (i.e., three years or longer). Under normal circumstances, the fund invests at least 80% of its net assets in tax-exempt investments, which for purposes of this policy exclude investments paying interest subject to the federal AMT for individuals. This investment policy cannot be changed without the approval of the fund’s shareholders. Interest income from private activity bonds may be subject to federal AMT for individuals. These investments are not included for the purpose of complying with the 80% investment policy. Tax-exempt investments are issued by or for states, territories or possessions of the United States or by their political subdivisions, agencies, authorities or other government entities. Putnam Management may consider, among other factors, credit, interest rate and prepayment risks, as well as general market conditions, when deciding whether to buy or sell investments.

The fund offers class A, class B, class C, class R6 and class Y shares. Purchases of class B shares are closed to new and existing investors except by exchange from class B shares of another Putnam fund or through dividend and/or capital gains reinvestment. Class A shares are sold with a maximum front-end sales charge of 4.00%. Class A shares generally are not subject to a contingent deferred sales charge, and class R6 and class Y shares are not subject to a contingent deferred sales charge. Class B shares, which convert to class A shares after approximately eight years, are not subject to a front-end sales charge and are subject to a contingent deferred sales charge if those shares are redeemed within six years of purchase. Class C shares are subject to a one-year 1.00% contingent deferred sales charge and generally convert to class A shares after approximately eight years. The expenses for class A, class B and class C shares may differ based on the distribution fee of each class, which is identified in Note 2. Class R6 and class Y shares, which are sold at net asset value, are generally subject to the same expenses as class A, class B and class C shares, but do not bear a distribution fee, and in the case of class R6 shares, bear a lower investor servicing fee, which is identified in Note 2. Class R6 and class Y shares are not available to all investors.

In the normal course of business, the fund enters into contracts that may include agreements to indemnify another party under given circumstances. The fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be, but have not yet been, made against the fund. However, the fund’s management team expects the risk of material loss to be remote.

The fund has entered into contractual arrangements with an investment adviser, administrator, distributor, shareholder servicing agent and custodian, who each provide services to the fund. Unless expressly stated otherwise, shareholders are not parties to, or intended beneficiaries of these contractual arrangements, and these contractual arrangements are not intended to create any shareholder right to enforce them against the service providers or to seek any remedy under them against the service providers, either directly or on behalf of the fund.

Under the fund’s Amended and Restated Agreement and Declaration of Trust, any claims asserted against or on behalf of the Putnam Funds, including claims against Trustees and Officers, must be brought in state and federal courts located within the Commonwealth of Massachusetts.

Note 1: Significant accounting policies

The following is a summary of significant accounting policies consistently followed by the fund in the preparation of its financial statements. The preparation of financial statements is in conformity with accounting principles generally accepted in the United States of America and requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and the reported amounts of increases and decreases in net assets from operations. Actual results could differ from those estimates. Subsequent events after the Statement of assets and liabilities date through the date that the financial statements were issued have been evaluated in the preparation of the financial statements.

Tax Exempt Income Fund 47 

Investment income, realized and unrealized gains and losses and expenses of the fund are borne pro-rata based on the relative net assets of each class to the total net assets of the fund, except that each class bears expenses unique to that class (including the distribution fees applicable to such classes). Each class votes as a class only with respect to its own distribution plan or other matters on which a class vote is required by law or determined by the Trustees. If the fund were liquidated, shares of each class would receive their pro-rata share of the net assets of the fund. In addition, the Trustees declare separate dividends on each class of shares.

Security valuation Portfolio securities and other investments are valued using policies and procedures adopted by the Board of Trustees. The Trustees have formed a Pricing Committee to oversee the implementation of these procedures and have delegated responsibility for valuing the fund’s assets in accordance with these procedures to Putnam Management. Putnam Management has established an internal Valuation Committee that is responsible for making fair value determinations, evaluating the effectiveness of the pricing policies of the fund and reporting to the Pricing Committee.

Tax-exempt bonds and notes are generally valued on the basis of valuations provided by an independent pricing service approved by the Trustees. Such services use information with respect to transactions in bonds, quotations from bond dealers, market transactions in comparable securities and various relationships between securities in determining value. These securities will generally be categorized as Level 2.

Market quotations are not considered to be readily available for certain debt obligations (including short-term investments with remaining maturities of 60 days or less) and other investments; such investments are valued on the basis of valuations furnished by an independent pricing service approved by the Trustees or dealers selected by Putnam Management. Such services or dealers determine valuations for normal institutional-size trading units of such securities using methods based on market transactions for comparable securities and various relationships, generally recognized by institutional traders, between securities (which consider such factors as security prices, yields, maturities and ratings). These securities will generally be categorized as Level 2. Securities quoted in foreign currencies, if any, are translated into U.S. dollars at the current exchange rate.

Investments in open-end investment companies (excluding exchange-traded funds), if any, which can be classified as Level 1 or Level 2 securities, are valued based on their net asset value. The net asset value of such investment companies equals the total value of their assets less their liabilities and divided by the number of their outstanding shares.

To the extent a pricing service or dealer is unable to value a security or provides a valuation that Putnam Management does not believe accurately reflects the security’s fair value, the security will be valued at fair value by Putnam Management in accordance with policies and procedures approved by the Trustees. Certain investments, including certain restricted and illiquid securities and derivatives, are also valued at fair value following procedures approved by the Trustees. These valuations consider such factors as significant market or specific security events such as interest rate or credit quality changes, various relationships with other securities, discount rates, U.S. Treasury, U.S. swap and credit yields, index levels, convexity exposures, recovery rates, sales and other multiples and resale restrictions. These securities are classified as Level 2 or as Level 3 depending on the priority of the significant inputs.

To assess the continuing appropriateness of fair valuations, the Valuation Committee reviews and affirms the reasonableness of such valuations on a regular basis after considering all relevant information that is reasonably available. Such valuations and procedures are reviewed periodically by the Trustees. The fair value of securities is generally determined as the amount that the fund could reasonably expect to realize from an orderly disposition of such securities over a reasonable period of time. By its nature, a fair value price is a good faith estimate of the value of a security in a current sale and does not reflect an actual market price, which may be different by a material amount.

Security transactions and related investment income Security transactions are recorded on the trade date (the date the order to buy or sell is executed). Gains or losses on securities sold are determined on the identified cost basis.

Interest income, net of any applicable withholding taxes, if any, and including amortization and accretion of premiums and discounts on debt securities, is recorded on the accrual basis.

Securities purchased or sold on a forward commitment or delayed delivery basis may be settled at a future date beyond customary settlement time; interest income is accrued based on the terms of the securities. Losses may arise due to changes in the fair value of the underlying securities or if the counterparty does not perform under the contract.

48 Tax Exempt Income Fund 

Futures contracts The fund uses futures contracts for hedging treasury term structure risk and for yield curve positioning.

The potential risk to the fund is that the change in value of futures contracts may not correspond to the change in value of the hedged instruments. In addition, losses may arise from changes in the value of the underlying instruments, if there is an illiquid secondary market for the contracts, if interest or exchange rates move unexpectedly or if the counterparty to the contract is unable to perform. With futures, there is minimal counterparty credit risk to the fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. Risks may exceed amounts recognized on the Statement of assets and liabilities. When the contract is closed, the fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

Futures contracts are valued at the quoted daily settlement prices established by the exchange on which they trade. The fund and the broker agree to exchange an amount of cash equal to the daily fluctuation in the value of the futures contract. Such receipts or payments are known as “variation margin.”

Futures contracts outstanding at period end, if any, are listed after the fund’s portfolio.

Total return swap contracts The fund entered into OTC and/or centrally cleared total return swap contracts, which are arrangements to exchange a market-linked return for a periodic payment, both based on a notional principal amount, for hedging inflation, for gaining exposure to inflation and for hedging and gaining exposure to interest rate and term structure risk.

To the extent that the total return of the security, index or other financial measure underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the fund will receive a payment from or make a payment to the counterparty. OTC and/or centrally cleared total return swap contracts are marked to market daily based upon quotations from an independent pricing service or market maker. Any change is recorded as an unrealized gain or loss on OTC total return swaps. Daily fluctuations in the value of centrally cleared total return swaps are settled through a central clearing agent and are recorded in variation margin on the Statement of assets and liabilities and recorded as unrealized gain or loss. Payments received or made are recorded as realized gains or losses. Certain OTC and/or centrally cleared total return swap contracts may include extended effective dates. Payments related to these swap contracts are accrued based on the terms of the contract. The fund could be exposed to credit or market risk due to unfavorable changes in the fluctuation of interest rates or in the price of the underlying security or index, the possibility that there is no liquid market for these agreements or that the counterparty may default on its obligation to perform. The fund’s maximum risk of loss from counterparty risk or central clearing risk is the fair value of the contract. This risk may be mitigated for OTC total return swap contracts by having a master netting arrangement between the fund and the counterparty and for centrally cleared total return swap contracts through the daily exchange of variation margin. There is minimal counterparty risk with respect to centrally cleared total return swap contracts due to the clearinghouse guarantee fund and other resources that are available in the event of a clearing member default. Risk of loss may exceed amounts recognized on the Statement of assets and liabilities.

OTC and/or centrally cleared total return swap contracts outstanding, including their respective notional amounts at period end, if any, are listed after the fund’s portfolio.

Master agreements The fund is a party to ISDA (International Swaps and Derivatives Association, Inc.) Master Agreements (Master Agreements) with certain counterparties that govern OTC derivative and foreign exchange contracts entered into from time to time. The Master Agreements may contain provisions regarding, among other things, the parties’ general obligations, representations, agreements, collateral requirements, events of default and early termination. With respect to certain counterparties, in accordance with the terms of the Master Agreements, collateral pledged to the fund is held in a segregated account by the fund’s custodian and, with respect to those amounts which can be sold or repledged, is presented in the fund’s portfolio.

Collateral pledged by the fund is segregated by the fund’s custodian and identified in the fund’s portfolio. Collateral can be in the form of cash or debt securities issued by the U.S. Government or related agencies or other securities as agreed to by the fund and the applicable counterparty. Collateral requirements are determined based on the fund’s net position with each counterparty.

Termination events applicable to the fund may occur upon a decline in the fund’s net assets below a specified threshold over a certain period of time. Termination events applicable to counterparties may occur upon a decline in the counterparty’s long-term and short-term credit ratings below a specified level. In each case, upon occurrence, the other party may elect to terminate early and cause settlement of all derivative and foreign exchange contracts outstanding, including the payment of any losses and costs resulting from such early

Tax Exempt Income Fund 49 

termination, as reasonably determined by the terminating party. Any decision by one or more of the fund’s counterparties to elect early termination could impact the fund’s future derivative activity.

At the close of the reporting period, the fund had a net liability position of $93,327 on open derivative contracts subject to the Master Agreements. Collateral pledged by the fund at period end for these agreements totaled $193,981 and may include amounts related to unsettled agreements.

Tender option bond transactions The fund may participate in transactions whereby a fixed-rate bond is transferred to a tender option bond trust (TOB trust) sponsored by a broker. The TOB trust funds the purchase of the fixed rate bonds by issuing floating-rate bonds to third parties and allowing the fund to retain the residual interest in the TOB trust’s assets and cash flows, which are in the form of inverse floating rate bonds. The inverse floating rate bonds held by the fund give the fund the right to (1) cause the holders of the floating rate bonds to tender their notes at par, and (2) to have the fixed-rate bond held by the TOB trust transferred to the fund, causing the TOB trust to collapse. The fund accounts for the transfer of the fixed-rate bond to the TOB trust as a secured borrowing by including the fixed-rate bond in the fund’s portfolio and including the floating rate bond as a liability in the Statement of assets and liabilities. At the close of the reporting period, the fund’s investments with a value of $26,345,904 were held by the TOB trust and served as collateral for $15,117,540 in floating-rate bonds outstanding. For the reporting period ended, the fund incurred interest expense of $11,560 for these investments based on an average interest rate of 0.14%.

Interfund lending The fund, along with other Putnam funds, may participate in an interfund lending program pursuant to an exemptive order issued by the SEC. This program allows the fund to borrow from other Putnam funds that permit such transactions. Interfund lending transactions are subject to each fund’s investment policies and borrowing and lending limits. Interest earned or paid on the interfund lending transaction will be based on the average of certain current market rates. During the reporting period, the fund did not utilize the program.

Lines of credit The fund participates, along with other Putnam funds, in a $317.5 million unsecured committed line of credit and a $235.5 million unsecured uncommitted line of credit, both provided by State Street. Borrowings may be made for temporary or emergency purposes, including the funding of shareholder redemption requests and trade settlements. Interest is charged to the fund based on the fund’s borrowing at a rate equal to 1.25% plus the higher of (1) the Federal Funds rate and (2) the Overnight Bank Funding Rate for the committed line of credit and 1.30% plus the higher of (1) the Federal Funds rate and (2) the Overnight Bank Funding Rate for the uncommitted line of credit. A closing fee equal to 0.04% of the committed line of credit and 0.04% of the uncommitted line of credit has been paid by the participating funds. In addition, a commitment fee of 0.21% per annum on any unutilized portion of the committed line of credit is allocated to the participating funds based on their relative net assets and paid quarterly. During the reporting period, the fund had no borrowings against these arrangements.

Federal taxes It is the policy of the fund to distribute all of its income within the prescribed time period and otherwise comply with the provisions of the Internal Revenue Code of 1986, as amended (the Code), applicable to regulated investment companies. It is also the intention of the fund to distribute an amount sufficient to avoid imposition of any excise tax under Section 4982 of the Code.

The fund is subject to the provisions of Accounting Standards Codification 740 Income Taxes (ASC 740). ASC 740 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The fund did not have a liability to record for any unrecognized tax benefits in the accompanying financial statements. No provision has been made for federal taxes on income, capital gains or unrealized appreciation on securities held nor for excise tax on income and capital gains. Each of the fund’s federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service.

Tax cost of investments includes adjustments to net unrealized appreciation (depreciation) which may not necessarily be final tax cost basis adjustments, but closely approximate the tax basis unrealized gains and losses that may be realized and distributed to shareholders. The aggregate identified cost on a tax basis is $855,445,836, resulting in gross unrealized appreciation and depreciation of $28,674,227 and $34,106,776, respectively, or net unrealized depreciation of $5,432,549.

Distributions to shareholders Income dividends are recorded daily by the fund and are paid monthly. Distributions from capital gains, if any, are recorded on the ex-dividend date and paid at least annually. The amount and character of income and gains to be distributed are determined in accordance with income tax regulations which may differ from generally accepted accounting principles. Dividend sources are estimated at the time of declaration. Actual results may vary. Any non-taxable return of capital cannot be determined until final tax calculations are completed after the end of the fund’s fiscal year. Reclassifications are made to the fund’s capital

50 Tax Exempt Income Fund 

accounts to reflect income and gains available for distribution (or available capital loss carryovers) under income tax regulations.

Note 2: Management fee, administrative services and other transactions

The fund pays Putnam Management a management fee (based on the fund’s average net assets and computed and paid monthly) at annual rates that may vary based on the average of the aggregate net assets of all open-end mutual funds sponsored by Putnam Management (excluding net assets of funds that are invested in, or that are invested in by, other Putnam funds to the extent necessary to avoid “double counting” of those assets). Such annual rates may vary as follows:

0.590%	of the first $5 billion,	0.390%	of the next $50 billion,
0.540%	of the next $5 billion,	0.370%	of the next $50 billion,
0.490%	of the next $10 billion,	0.360%	of the next $100 billion and
0.440%	of the next $10 billion,	0.355%	of any excess thereafter.

For the reporting period, the management fee represented an effective rate (excluding the impact from any expense waivers in effect) of 0.210% of the fund’s average net assets.

Putnam Management has contractually agreed, through January 30, 2023, to waive fees and/or reimburse the fund’s expenses to the extent necessary to limit the cumulative expenses of the fund, exclusive of brokerage, interest, taxes, investment-related expenses, extraordinary expenses, acquired fund fees and expenses and payments under the fund’s investor servicing contract, investment management contract and distribution plans, on a fiscal year-to-date basis to an annual rate of 0.20% of the fund’s average net assets over such fiscal year-to-date period. During the reporting period, the fund’s expenses were not reduced as a result of this limit.

Putnam Investments Limited (PIL), an affiliate of Putnam Management, is authorized by the Trustees to manage a separate portion of the assets of the fund as determined by Putnam Management from time to time. PIL did not manage any portion of the assets of the fund during the reporting period. If Putnam Management were to engage the services of PIL, Putnam Management would pay a quarterly sub-management fee to PIL for its services at an annual rate of 0.40% of the average net assets of the portion of the fund managed by PIL.

The fund reimburses Putnam Management an allocated amount for the compensation and related expenses of certain officers of the fund and their staff who provide administrative services to the fund. The aggregate amount of all such reimbursements is determined annually by the Trustees.

Custodial functions for the fund’s assets are provided by State Street. Custody fees are based on the fund’s asset level, the number of its security holdings and transaction volumes.

Putnam Investor Services, Inc., an affiliate of Putnam Management, provides investor servicing agent functions to the fund. Putnam Investor Services, Inc. received fees for investor servicing for class A, class B, class C and class Y shares that included (1) a per account fee for each direct and underlying non-defined contribution account (retail account) of the fund; (2) a specified rate of the fund’s assets attributable to defined contribution plan accounts; and (3) a specified rate based on the average net assets in retail accounts. Putnam Investor Services, Inc. has agreed that the aggregate investor servicing fees for each fund’s retail and defined contribution accounts for these share classes will not exceed an annual rate of 0.25% of the fund’s average assets attributable to such accounts.

Class R6 shares paid a monthly fee based on the average net assets of class R6 shares at an annual rate of 0.05%.

During the reporting period, the expenses for each class of shares related to investor servicing fees were as follows:

Class A	$248,113	Class R6	1,373
Class B	238	Class Y	43,358
Class C	4,847	Total	$297,929

The fund has entered into expense offset arrangements with Putnam Investor Services, Inc. and State Street whereby Putnam Investor Services, Inc.’s and State Street’s fees are reduced by credits allowed on cash balances. For the reporting period, the fund’s expenses were reduced by $236 under the expense offset arrangements.

Tax Exempt Income Fund 51 

Each Independent Trustee of the fund receives an annual Trustee fee, of which $615, as a quarterly retainer, has been allocated to the fund, and an additional fee for each Trustees meeting attended. Trustees also are reimbursed for expenses they incur relating to their services as Trustees.

The fund has adopted a Trustee Fee Deferral Plan (the Deferral Plan) which allows the Trustees to defer the receipt of all or a portion of Trustees fees payable on or after July 1, 1995. The deferred fees remain invested in certain Putnam funds until distribution in accordance with the Deferral Plan.

The fund has adopted an unfunded noncontributory defined benefit pension plan (the Pension Plan) covering all Trustees of the fund who have served as a Trustee for at least five years and were first elected prior to 2004. Benefits under the Pension Plan are equal to 50% of the Trustee’s average annual attendance and retainer fees for the three years ended December 31, 2005. The retirement benefit is payable during a Trustee’s lifetime, beginning the year following retirement, for the number of years of service through December 31, 2006. Pension expense for the fund is included in Trustee compensation and expenses in the Statement of operations. Accrued pension liability is included in Payable for Trustee compensation and expenses in the Statement of assets and liabilities. The Trustees have terminated the Pension Plan with respect to any Trustee first elected after 2003.

The fund has adopted distribution plans (the Plans) with respect to the following share classes pursuant to Rule 12b–1 under the Investment Company Act of 1940. The purpose of the Plans is to compensate Putnam Retail Management Limited Partnership, an indirect wholly-owned subsidiary of Putnam Investments, LLC, for services provided and expenses incurred in distributing shares of the fund. The Plans provide payments by the fund to Putnam Retail Management Limited Partnership at an annual rate of up to the following amounts (Maximum %) of the average net assets attributable to each class. The Trustees have approved payment by the fund at the following annual rate (Approved %) of the average net assets attributable to each class. During the reporting period, the class-specific expenses related to distribution fees were as follows:

	Maximum %	Approved %	Amount
Class A	0.35%	0.25%	$915,110
Class B	1.00%	0.85%	2,987
Class C	1.00%	1.00%	71,622
Total			$989,719

For the reporting period, Putnam Retail Management Limited Partnership, acting as underwriter, received net commissions of $12,787 from the sale of class A shares and received $12 and no monies in contingent deferred sales charges from redemptions of class B and class C shares, respectively.

A deferred sales charge of up to 1.00% is assessed on certain redemptions of class A shares. For the reporting period, Putnam Retail Management Limited Partnership, acting as underwriter, received no monies on class A redemptions.

Note 3: Purchases and sales of securities

During the reporting period, the cost of purchases and the proceeds from sales, excluding short-term investments, were as follows:

	Cost of purchases	Proceeds from sales
Investments in securities (Long-term)	$202,876,197	$234,260,681
U.S. government securities (Long-term)	—	—
Total	$202,876,197	$234,260,681

The fund may purchase or sell investments from or to other Putnam funds in the ordinary course of business, which can reduce the fund’s transaction costs, at prices determined in accordance with SEC requirements and policies approved by the Trustees. During the reporting period, purchases or sales of long-term securities from or to other Putnam funds, if any, did not represent more than 5% of the fund’s total cost of purchases and/or total proceeds from sales.

52 Tax Exempt Income Fund 

Note 4: Capital shares

At the close of the reporting period, there were an unlimited number of shares of beneficial interest authorized. Transactions, including, if applicable, direct exchanges pursuant to share conversions, in capital shares were as follows:

	SIX MONTHS ENDED 3/31/22		YEAR ENDED 9/30/21
Class A	Shares	Amount	Shares	Amount
Shares sold	2,130,567	$18,486,583	6,700,483	$59,299,647
Shares issued in connection with
reinvestment of distributions	2,255,491	19,497,940	1,669,730	14,783,604
	4,386,058	37,984,523	8,370,213	74,083,251
Shares repurchased	(9,727,679)	(83,256,945)	(12,098,411)	(107,078,926)
Net decrease	(5,341,621)	$(45,272,422)	(3,728,198)	$(32,995,675)
	SIX MONTHS ENDED 3/31/22		YEAR ENDED 9/30/21
Class B	Shares	Amount	Shares	Amount
Shares sold	11	$84	1,730	$14,964
Shares issued in connection with
reinvestment of distributions	2,030	17,585	1,572	13,904
	2,041	17,669	3,302	28,868
Shares repurchased	(12,276)	(105,379)	(75,427)	(667,089)
Net decrease	(10,235)	$(87,710)	(72,125)	$(638,221)
	SIX MONTHS ENDED 3/31/22		YEAR ENDED 9/30/21
Class C	Shares	Amount	Shares	Amount
Shares sold	49,642	$435,029	250,702	$2,220,815
Shares issued in connection with
reinvestment of distributions	39,726	344,811	26,119	231,639
	89,368	779,840	276,821	2,452,454
Shares repurchased	(312,060)	(2,663,675)	(1,008,697)	(8,919,394)
Net decrease	(222,692)	$(1,883,835)	(731,876)	$(6,466,940)
	SIX MONTHS ENDED 3/31/22		YEAR ENDED 9/30/21
Class R6	Shares	Amount	Shares	Amount
Shares sold	262,707	$2,242,148	249,258	$2,226,063
Shares issued in connection with
reinvestment of distributions	20,098	173,937	11,970	106,304
	282,805	2,416,085	261,228	2,332,367
Shares repurchased	(280,985)	(2,391,667)	(71,130)	(630,842)
Net increase	1,820	$24,418	190,098	$1,701,525

Tax Exempt Income Fund 53 

	SIX MONTHS ENDED 3/31/22		YEAR ENDED 9/30/21
Class Y	Shares	Amount	Shares	Amount
Shares sold	1,567,102	$13,529,860	5,801,734	$51,402,217
Shares issued in connection with
reinvestment of distributions	290,456	2,514,986	225,328	2,000,260
	1,857,558	16,044,846	6,027,062	53,402,477
Shares repurchased	(3,067,902)	(26,503,332)	(3,257,699)	(28,907,941)
Net increase (decrease)	(1,210,344)	$(10,458,486)	2,769,363	$24,494,536

Note 5: Affiliated transactions

Transactions during the reporting period with any company which is under common ownership or control were as follows:

					Shares
					outstanding
					and fair
	Fair value as	Purchase	Sale	Investment	value as
Name of affiliate	of 9/30/21	cost	proceeds	income	of 3/31/22
Short-term investments
Putnam Short Term
Investment Fund*	$56,497,650	$137,761,784	$184,764,791	$27,255	$9,494,643
Total Short-term
investments	$56,497,650	$137,761,784	$184,764,791	$27,255	$9,494,643

^* Management fees charged to Putnam Short Term Investment Fund have been waived by Putnam Management. There were no realized or unrealized gains or losses during the period.

Note 6: Market, credit and other risks

In the normal course of business, the fund trades financial instruments and enters into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the contracting party to the transaction to perform (credit risk). The fund may be exposed to additional credit risk that an institution or other entity with which the fund has unsettled or open transactions will default.

On July 27, 2017, the United Kingdom’s Financial Conduct Authority (“FCA”), which regulates LIBOR, announced its intention to cease compelling banks to provide the quotations needed to sustain LIBOR after 2021. ICE Benchmark Administration, the administrator of LIBOR, ceased publication of most LIBOR settings on a representative basis at the end of 2021 and is expected to cease publication of a majority of U.S. dollar LIBOR settings on a representative basis after June 30, 2023. In addition, global regulators have announced that, with limited exceptions, no new LIBOR-based contracts should be entered into after 2021.LIBOR has historically been a common benchmark interest rate index used to make adjustments to variable-rate loans. It is used throughout global banking and financial industries to determine interest rates for a variety of financial instruments and borrowing arrangements. Actions by regulators have resulted in the establishment of alternative reference rates to LIBOR in most major currencies. Various financial industry groups have been planning for the transition away from LIBOR, but there are obstacles to converting certain longer-term securities and transactions to new reference rates. Markets are developing slowly and questions around liquidity in these rates and how to appropriately adjust these rates to mitigate any economic value transfer at the time of transition remain a significant concern. Neither the effect of the transition process nor its ultimate success can yet be known. The transition process might lead to increased volatility and illiquidity in markets that rely on LIBOR to determine interest rates. It could also lead to a reduction in the value of some LIBOR-based investments and reduce the effectiveness of related transactions, such as hedges. While some LIBOR-based instruments may contemplate a scenario where LIBOR is no longer available by providing for an alternative rate-setting methodology, not all may have such provisions and there may be significant uncertainty regarding the effectiveness of any such alternative methodologies. Since the usefulness of LIBOR as a benchmark could deteriorate during the transition period, these effects could occur at any time.

54 Tax Exempt Income Fund 

Beginning in January 2020, global financial markets have experienced, and may continue to experience, significant volatility resulting from the spread of a virus known as Covid–19. The outbreak of Covid–19 has resulted in travel and border restrictions, quarantines, supply chain disruptions, lower consumer demand, and general market uncertainty. The effects of Covid–19 have adversely affected, and may continue to adversely affect, the global economy, the economies of certain nations, and individual issuers, all of which may negatively impact the fund’s performance.

Note 7: Summary of derivative activity

The volume of activity for the reporting period for any derivative type that was held during the period is listed below and was based on an average of the holdings at the end of each fiscal quarter:

Futures contracts (number of contracts)	300
OTC total return swap contracts (notional)	$46,100,000
Centrally cleared total return swap contracts (notional)	$24,200,000

The following is a summary of the fair value of derivative instruments as of the close of the reporting period:

Fair value of derivative instruments as of the close of the reporting period
	ASSET DERIVATIVES		LIABILITY DERIVATIVES
Derivatives not
accounted for as	Statement of		Statement of
hedging instruments	assets and		assets and
under ASC 815	liabilities location	Fair value	liabilities location	Fair value
	Receivables, Net
	assets — Unrealized		Payables, Net assets —
Interest rate contracts	appreciation	$992,465*	Unrealized depreciation	$777,497*
Total		$992,465		$777,497

^* Includes cumulative appreciation/depreciation of futures contracts as reported in the fund’s portfolio. Only current day’s variation margin is reported within the Statement of assets and liabilities.

The following is a summary of realized and change in unrealized gains or losses of derivative instruments in the Statement of operations for the reporting period (Note 1):

Amount of realized gain or (loss) on derivatives recognized in net gain or (loss) on investments
Derivatives not accounted for as hedging
instruments under ASC 815	Futures	Swaps	Total
Interest rate contracts	$2,768,742	$(2,559,289)	$209,453
Total	$2,768,742	$(2,559,289)	$209,453
Change in unrealized appreciation or (depreciation) on derivatives recognized in net gain or (loss)
on investments
Derivatives not accounted for as hedging
instruments under ASC 815	Futures	Swaps	Total
Interest rate contracts	$(84,422)	$182,655	$98,233
Total	$(84,422)	$182,655	$98,233

Tax Exempt Income Fund 55 

Note 8: Offsetting of financial and derivative assets and liabilities

The following table summarizes any derivatives, repurchase agreements and reverse repurchase agreements, at the end of the reporting period, that are subject to an enforceable master netting agreement or similar agreement. For securities lending transactions or borrowing transactions associated with securities sold short, if any, see Note 1. For financial reporting purposes, the fund does not offset financial assets and financial liabilities that are subject to the master netting agreements in the Statement of assets and liabilities.

			Morgan Stanley &
		JPMorgan	Co. International
	Citibank, N.A.	Securities LLC	PLC	Total
Assets:
OTC Total return swap contracts*#	$84,365	$—	$583,586	$667,951
Futures contracts§	—	—	—	—
Total Assets	$84,365	$—	$583,586	$667,951
Liabilities:
OTC Total return swap contracts*#	111,301	—	649,977	761,278
Futures contracts§	—	45,505	—	45,505
Total Liabilities	$111,301	$45,505	$649,977	$806,783
Total Financial and Derivative	$(26,936)	$(45,505)	$(66,391)	$(138,832)
Net Assets
Total collateral received	$(26,936)	$—	$(22,998)
(pledged)†##
Net amount	$—	$(45,505)	$(43,393)
Controlled collateral received
(including TBA commitments)**	$—	$—	$—	$—
Uncontrolled collateral received	$—	$—	$—	$—
Collateral (pledged) (including
TBA commitments)**	$(170,983)	$—	$(22,998)	$(193,981)

^* Excludes premiums, if any. Included in unrealized appreciation and depreciation on OTC swap contracts on the Statement of assets and liabilities.

^** Included with Investments in securities on the Statement of assets and liabilities.

^† Additional collateral may be required from certain brokers based on individual agreements.

^# Covered by master netting agreement (Note 1).

^##Any over-collateralization of total financial and derivative net assets is not shown. Collateral may include amounts related to unsettled agreements.

^§ Includes current day’s variation margin only as reported on the Statement of assets and liabilities, which is not collateralized. Cumulative appreciation/(depreciation) for futures contracts is represented in the tables listed after the fund’s portfolio. Collateral pledged for initial margin on futures contracts, which is not included in the table above, amounted to $295,970.

Note 9: New accounting pronouncements

In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020–04, Reference Rate Reform (Topic 848) — Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in ASU 2020–04 provide optional temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of LIBOR and other interbank-offered based reference rates as of the end of 2021. The discontinuation of LIBOR was subsequently extended to June 30, 2023.ASU 2020–04 is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management expects that the adoption of the guidance will not have a material impact on the fund’s financial statements.

56 Tax Exempt Income Fund 

Fund information

Founded over 80 years ago, Putnam Investments was built around the concept that a balance between risk and reward is the hallmark of a well-rounded financial program. We manage funds across income, value, blend, growth, sustainable, asset allocation, absolute return, and global sector categories.

Investment Manager	Trustees	Richard T. Kircher
Putnam Investment	Kenneth R. Leibler, Chair	Vice President and
Management, LLC	Liaquat Ahamed	BSA Compliance Officer
100 Federal Street	Ravi Akhoury
Boston, MA 02110	Barbara M. Baumann	Martin Lemaire
	Katinka Domotorffy	Vice President and
Investment Sub-Advisor	Catharine Bond Hill	Derivatives Risk Manager
Putnam Investments Limited	Paul L. Joskow
16 St James’s Street	George Putnam, III	Susan G. Malloy
London, England SW1A 1ER	Robert L. Reynolds	Vice President and
	Manoj P. Singh	Assistant Treasurer
Marketing Services	Mona K. Sutphen
Putnam Retail Management		Alan G. McCormack
Limited Partnership	Officers	Vice President and
100 Federal Street	Robert L. Reynolds	Derivatives Risk Manager
Boston, MA 02110	President
		Denere P. Poulack
Custodian	James F. Clark	Assistant Vice President,
State Street Bank	Vice President, Chief Compliance	Assistant Clerk, and
and Trust Company	Officer, and Chief Risk Officer	Assistant Treasurer
Legal Counsel	Nancy E. Florek	Janet C. Smith
Ropes & Gray LLP	Vice President, Director of	Vice President,
	Proxy Voting and Corporate	Principal Financial Officer,
	Governance, Assistant Clerk,	Principal Accounting Officer,
	and Assistant Treasurer	and Assistant Treasurer
	Michael J. Higgins	Stephen J. Tate
	Vice President, Treasurer,	Vice President and
	and Clerk	Chief Legal Officer
	Jonathan S. Horwitz	Mark C. Trenchard
	Executive Vice President,	Vice President
	Principal Executive Officer,
	and Compliance Liaison

This report is for the information of shareholders of Putnam Tax Exempt Income Fund. It may also be used as sales literature when preceded or accompanied by the current prospectus, the most recent copy of Putnam’s Quarterly Performance Summary, and Putnam’s Quarterly Ranking Summary. For more recent performance, please visit putnam.com. Investors should carefully consider the investment objectives, risks, charges, and expenses of a fund, which are described in its prospectus. For this and other information or to request a prospectus or summary prospectus, call 1-800-225-1581 toll free. Please read the prospectus carefully before investing. The fund’s Statement of Additional Information contains additional information about the fund’s Trustees and is available without charge upon request by calling 1-800-225-1581.

Item 2. Code of Ethics:

Not applicable

Item 3. Audit Committee Financial Expert:

Not applicable

Item 4. Principal Accountant Fees and Services:

Not applicable

Item 5. Audit Committee of Listed Registrants

Not applicable

Item 6. Schedule of Investments:

The registrant’s schedule of investments in unaffiliated issuers is included in the report to shareholders in Item 1 above.

Item 7. Disclosure of Proxy Voting Policies and Procedures For Closed-End Management Investment Companies:

Not applicable

Item 8. Portfolio Managers of Closed-End Investment Companies

Not Applicable

Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers:

Not applicable

Item 10. Submission of Matters to a Vote of Security Holders:

Not applicable

Item 11. Controls and Procedures:

(a) The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the effectiveness of the design and operation of the registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the design and operation of such procedures are generally effective to provide reasonable assurance that information required to be disclosed by the registrant in this report is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms.

(b) Changes in internal control over financial reporting: Not applicable

Item 12. Disclosures of Securities Lending Activities for Closed-End Investment Companies:

Not Applicable

Item 13. Exhibits:

(a)(1) Not applicable

(a)(2) Separate certifications for the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are filed herewith.

(b) The certifications required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended, are filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Putnam Tax Exempt Income Fund

By (Signature and Title):

/s/ Janet C. Smith
Janet C. Smith
Principal Accounting Officer

Date: May 23, 2022

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title):

/s/ Jonathan S. Horwitz
Jonathan S. Horwitz
Principal Executive Officer

Date: May 23, 2022

By (Signature and Title):

/s/ Janet C. Smith
Janet C. Smith
Principal Financial Officer

Date: May 23, 2022