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: | (811-04345) |
Exact name of registrant as specified in charter: | Putnam Tax Free Income Trust |
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 |
James E. Thomas, Esq. Ropes & Gray LLP 800 Boylston Street Boston, Massachusetts 02199 |
Registrant’s telephone number, including area code: | (617) 292-1000 |
Date of fiscal year end: | July 31, 2024 |
Date of reporting period: | August 1, 2023 – January 31, 2024 |
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
Strategic Intermediate
Municipal Fund
Semiannual report
1 | 31 | 24
Message from the Trustees
March 11, 2024
Dear Fellow Shareholder:
We are pleased to report that on January 1, 2024, Franklin Resources, Inc., a leading global asset management firm operating as Franklin Templeton, acquired Putnam Investments. With complementary capabilities and an established infrastructure serving over 150 countries, Franklin Templeton enhances Putnam’s investment, risk management, operations, and technology platforms. Together, our firms are committed to delivering strong fund performance and more choices for our investors.
We are also excited to welcome Jane E. Trust as an interested trustee to your Board of Trustees. Ms. Trust contributes over 30 years of investment management experience to The Putnam Funds, and has served as Senior Vice President, Fund Board Management, at Franklin Templeton since 2020.
As we enter this new chapter, you can rest assured that your fund continues to be actively managed by the same experienced professionals. Your investment team is exploring new and attractive opportunities for your fund while monitoring changing market conditions.
Thank you for investing with Putnam.
Credit qualities are shown as a percentage of the fund’s net assets as of 1/31/24. 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. Due to rounding, percentages may not equal 100%.
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.
2 Strategic Intermediate Municipal 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. 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 7/31/23 | 0.84% | 1.44% | 1.59% | 0.57% | 0.59% |
Annualized expense ratio for the six-month | |||||
period ended 1/31/24 | 0.93% | 1.53% | 1.68% | 0.56% | 0.68% |
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.
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 8/1/23 to 1/31/24. 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*† | $4.75 | $7.81 | $8.57 | $2.87 | $3.48 |
Ending value (after expenses) | $1,033.70 | $1,030.60 | $1,029.80 | $1,036.20 | $1,035.00 |
* 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 1/31/24. 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 (184); and then dividing that result by the number of days in the year (366).
Strategic Intermediate Municipal Fund 3 |
Estimate the expenses you paid
To estimate the ongoing expenses you paid for the six months ended 1/31/24, use the following calculation method. To find the value of your investment on 8/1/23, 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*† | $4.72 | $7.76 | $8.52 | $2.85 | $3.46 |
Ending value (after expenses) | $1,020.46 | $1,017.44 | $1,016.69 | $1,022.32 | $1,021.72 |
* 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 1/31/24. 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 (184); and then dividing that result by the number of days in the year (366).
4 Strategic Intermediate Municipal Fund |
Other information for shareholders
Important notice regarding delivery of shareholder documents
In accordance with Securities and Exchange Commission (SEC) regulations, your fund’s manager sends a single notice of internet availability, or a single printed copy, of annual and semiannual shareholder reports, prospectuses, and proxy statements to shareholders who share the same address, unless a shareholder requests otherwise. If you prefer to receive your own copy of these documents, please call 1-800-225-1581 or, for exchange-traded funds only, 1-833-228-5577. We will begin sending individual copies within 30 days.
Proxy voting
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, 2023, 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 Shareholder Services at 1-800-225-1581 or, for exchange-traded funds only, 1-833-228-5577.
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.
Strategic Intermediate Municipal Fund 5 |
Important notice regarding Putnam’s privacy policy
In order to conduct business with our shareholders, we must obtain certain personal information such as account holders’ names, addresses, Social Security numbers, and dates of birth. Using this information, we are able to maintain accurate records of accounts and transactions.
It is our policy to protect the confidentiality of our shareholder information, whether or not a shareholder currently owns shares of our funds. In particular, it is our policy not to sell information about you or your accounts to outside marketing firms. We have safeguards in place designed to prevent unauthorized access to our computer systems and procedures to protect personal information from unauthorized use.
Under certain circumstances, we must share account information with outside vendors who provide services to us, such as mailings and proxy solicitations. In these cases, the service providers enter into confidentiality agreements with us, and we provide only the information necessary to process transactions and perform other services related to your account. Finally, it is our policy to share account information with your financial representative, if you’ve listed one on your Putnam account.
6 Strategic Intermediate Municipal 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 (not required for money market funds) in one summary table, reflecting the five most recent reporting periods. In a semiannual report, the highlights table also includes the current reporting period.
Strategic Intermediate Municipal Fund 7 |
The fund’s portfolio 1/31/24 (Unaudited) | ||
Key to holding’s abbreviations
AGM Assured Guaranty Municipal Corporation |
AMBAC AMBAC Indemnity Corporation |
BAM Build America Mutual |
COP Certificates of Participation |
FHA Insd. Federal Housing Administration Insured |
FHLMC Coll. Federal Home Loan Mortgage Corporation Collateralized |
FNMA Coll. Federal National Mortgage Association Collateralized |
G.O. Bonds General Obligation Bonds |
GNMA Coll. Government National Mortgage Association Collateralized |
PSFG Permanent School Fund Guaranteed |
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 3.74% as of the close of the reporting period. |
MUNICIPAL BONDS AND NOTES (100.2%)* | Rating** | Principal amount | Value | |
Alabama (1.8%) | ||||
AL Corrections Inst. Fin. Auth. Rev. Bonds, 5.00%, 7/1/26 | Aa2 | $1,000,000 | $1,046,930 | |
Black Belt Energy Gas Dist. | ||||
Mandatory Put Bonds (2/1/29), Ser. D-1, 5.50%, 6/1/49 | A2 | 2,000,000 | 2,142,854 | |
Mandatory Put Bonds (12/1/25), Ser. A-1, 4.00%, 12/1/49 | A1 | 2,475,000 | 2,480,745 | |
Black Belt Energy Gas Dist., Gas Supply Mandatory Put Bonds (6/1/27), Ser. D-1, 4.00%, 7/1/52 | Aa1 | 1,000,000 | 1,004,452 | |
Energy Southeast Cooperative Dist. Energy Supply Mandatory Put Bonds (11/1/31), Ser. B-1, 5.75%, 4/1/54 | A1 | 5,000,000 | 5,579,783 | |
Jefferson, Cnty. Rev. Bonds, (Refunding warrants) | ||||
5.00%, 9/15/34 | AA+ | 1,075,000 | 1,144,497 | |
5.00%, 9/15/33 | AA+ | 125,000 | 133,276 | |
Southeast Energy Auth. Commodity Supply Mandatory Put Bonds (12/1/29)(8/1/28), | ||||
Mandatory Put Bonds (12/1/29), Ser. A-1, 5.50%, 1/1/53 | A1 | 1,350,000 | 1,464,248 | |
Mandatory Put Bonds (8/1/28), Ser. B-1, 5.00%, 5/1/53 | A2 | 3,000,000 | 3,127,681 | |
UAB Medicine Fin. Auth. Rev. Bonds, Ser. B, 5.00%, 9/1/34 | Aa3 | 5,430,000 | 5,644,191 | |
23,768,657 | ||||
Alaska (0.2%) | ||||
AK State Indl. Dev. & Export Auth. Rev. Bonds, (Tanana Chiefs Conference), Ser. A | ||||
4.00%, 10/1/39 | A+/F | 2,445,000 | 2,428,835 | |
4.00%, 10/1/38 | A+/F | 555,000 | 553,703 | |
2,982,538 |
8 Strategic Intermediate Municipal Fund |
MUNICIPAL BONDS AND NOTES (100.2%)* cont. | Rating** | Principal amount | Value | |
Arizona (1.9%) | ||||
AZ State Indl. Dev. Auth. Rev. Bonds | ||||
(Equitable School Revolving Fund, LLC), 5.00%, 11/1/41 | A | $850,000 | $908,070 | |
(Equitable School Revolving Fund, LLC), 5.00%, 11/1/40 | A | 650,000 | 697,743 | |
(Equitable School Revolving Fund, LLC), 5.00%, 11/1/39 | A | 780,000 | 842,508 | |
(Equitable School Revolving Fund, LLC), Ser. A, 5.00%, 11/1/38 | A | 2,740,000 | 2,882,913 | |
(Equitable School Revolving Fund, LLC), 5.00%, 11/1/38 | A | 450,000 | 486,784 | |
(Equitable School Revolving Fund, LLC), 5.00%, 11/1/34 | A | 1,000,000 | 1,075,248 | |
Ser. 19-2, Class A, 3.625%, 5/20/33 | BBB | 5,034,778 | 4,724,229 | |
Glendale, Indl. Dev. Auth. Sr. Living Fac. Rev. Bonds, (Royal Oaks Life Care Cmnty.) | ||||
4.00%, 5/15/31 | BB+/F | 1,000,000 | 923,344 | |
4.00%, 5/15/29 | BB+/F | 1,000,000 | 945,977 | |
Maricopa Cnty., Indl. Dev. Auth. Rev. Bonds, (Banner Hlth.), Ser. A, 4.00%, 1/1/44 | AA− | 2,360,000 | 2,356,380 | |
Pima Cnty., Indl. Dev. Auth. Sr. Living 144A Rev. Bonds, (La Posada at Park Centre, Inc.), 6.25%, 11/15/35 | BBB+/P | 2,750,000 | 2,843,513 | |
Salt Verde, Fin. Corp. Gas Rev. Bonds | ||||
5.50%, 12/1/29 | A3 | 1,000,000 | 1,078,977 | |
5.25%, 12/1/25 | A3 | 5,000,000 | 5,117,865 | |
24,883,551 | ||||
California (11.4%) | ||||
Anaheim, Union High School Dist. G.O. Bonds, 3.00%, 8/1/38 | Aa2 | 3,000,000 | 2,738,160 | |
Antioch, Unified School Dist. G.O. Bonds, BAM, 3.00%, 8/1/34 | AA | 1,185,000 | 1,135,979 | |
CA Cmnty. Choice Fin. Auth. Mandatory Put Bonds (4/1/32), Ser. A-1, 5.00%, 5/1/54 | A1 | 7,200,000 | 7,772,874 | |
CA Cmnty. Hsg. Agcy. Essential Hsg. 144A Rev. Bonds, (Aster Apt.), Ser. A-1, 4.00%, 2/1/56 | BB+/P | 250,000 | 213,122 | |
CA Hsg. Fin. Agcy. Rev. Bonds, Ser. 2, Class A, 4.00%, 3/20/33 | BBB+ | 1,092,131 | 1,098,623 | |
CA Hsg. Fin. Agcy. Muni. Certif. Rev. Bonds, Ser. 21-1, Class A, 3.50%, 11/20/35 | BBB+ | 885,736 | 835,184 | |
CA Muni. Fin. Auth. 144A Rev. Bonds, (CA Baptist U.), Ser. A, 4.00%, 11/1/26 | BB/P | 1,470,000 | 1,452,616 | |
CA State G.O. Bonds, 3.00%, 10/1/36 | Aa2 | 2,000,000 | 1,934,120 | |
CA State Charter School Fin. Auth. 144A Rev. Bonds, (Aspire Pub. Schools), 5.00%, 8/1/36 | BBB | 3,225,000 | 3,270,587 | |
CA State Edl. Fac. Auth. Rev. Bonds | ||||
(St. Mary’s College of CA), 5.25%, 10/1/35 | BBB− | 1,015,000 | 1,119,330 | |
(St. Mary’s College of CA), 5.25%, 10/1/34 | BBB− | 1,000,000 | 1,111,085 | |
(St. Mary’s College of CA), 5.00%, 10/1/38 | BBB− | 500,000 | 530,219 | |
(St. Mary’s College of CA), 5.00%, 10/1/37 | BBB− | 700,000 | 748,877 | |
(St. Mary’s College of CA), 5.00%, 10/1/36 | BBB− | 700,000 | 754,556 | |
(U. of the Pacific), 5.00%, 11/1/36 | A2 | 2,580,000 | 2,643,207 |
Strategic Intermediate Municipal Fund 9 |
MUNICIPAL BONDS AND NOTES (100.2%)* cont. | Rating** | Principal amount | Value | |
California cont. | ||||
CA State Enterprise Dev. Auth. Student Hsg. Rev. Bonds, (Provident Group-SDSU Properties, LLC), Ser. A, 5.00%, 8/1/28 | Baa3 | $150,000 | $157,546 | |
CA State Hlth. Fac. Fin. Auth. Rev. Bonds, (Lundquist Inst. For Biomedical Innovation at Harbor-UCLA Med) | ||||
5.00%, 9/1/38 | Baa2 | 1,485,000 | 1,516,985 | |
5.00%, 9/1/36 | Baa2 | 1,505,000 | 1,552,245 | |
5.00%, 9/1/35 | Baa2 | 1,615,000 | 1,671,534 | |
CA State Infrastructure & Econ. Dev. Bank | ||||
Mandatory Put Bonds (6/1/26), (Museum Associates), 4.44%, 12/1/50 | A3 | 1,000,000 | 975,444 | |
Mandatory Put Bonds (8/1/24), (CA Academy of Sciences), 4.09%, 8/1/47 | A2 | 1,500,000 | 1,491,600 | |
CA State Muni. Fin. Auth. Rev. Bonds | ||||
(Bethany Home Society of San Joaquin Cnty.), 5.00%, 11/15/42 | AA− | 5,000,000 | 5,551,880 | |
(CHF-Davis I, LLC), BAM, 5.00%, 5/15/40 | AA | 5,690,000 | 5,969,179 | |
(CHF-Riverside II, LLC), 5.00%, 5/15/34 | Baa3 | 915,000 | 985,974 | |
(HumanGood Oblig. Group), Ser. A, 4.00%, 10/1/32 | A−/F | 1,000,000 | 1,015,657 | |
CA State Poll Control Fin. Auth. Wtr. Fac. Mandatory Put Bonds (9/1/28), (American Wtr. Cap. Corp.), 3.70%, 8/1/40 | A | 3,000,000 | 3,027,874 | |
CA State Pub. Wks. Board Rev. Bonds, Ser. E, 5.00%, 9/1/34 | Aa3 | 900,000 | 908,312 | |
CA State Statewide Communities Dev. Auth. Hosp. Rev. Bonds, (Methodist Hosp. of Southern CA), 5.00%, 1/1/48 | BBB− | 4,500,000 | 4,568,092 | |
CA State U. Mandatory Put Bonds (11/1/26) | ||||
Ser. B-3, 3.125%, 11/1/51 | Aa2 | 7,000,000 | 7,042,165 | |
Ser. B-2, 0.55%, 11/1/49 | Aa2 | 1,000,000 | 902,062 | |
CA Statewide Cmnty. Dev. Auth. Rev. Bonds | ||||
(Odd Fellows Home of CA), 5.00%, 4/1/38 | AA− | 400,000 | 438,787 | |
(Odd Fellows Home of CA), 5.00%, 4/1/37 | AA− | 350,000 | 387,240 | |
(Odd Fellows Home of CA), 5.00%, 4/1/36 | AA− | 500,000 | 558,308 | |
(St. John’s Partners), Ser. F, 4.50%, 8/15/30 | AA+ | 15,000,000 | 15,565,077 | |
(Odd Fellows Home of CA), 4.00%, 4/1/43 | AA− | 1,900,000 | 1,928,748 | |
CA Statewide Cmnty. Dev. Auth. 144A Rev. Bonds, (Lancer Edl. Student Hsg.), Ser. A, 3.00%, 6/1/29 | BB/P | 1,300,000 | 1,203,771 | |
Chula Vista, Muni. Fin. Auth. Special Tax Bonds, 5.50%, 9/1/30 | AA− | 775,000 | 776,880 | |
Golden State Tobacco Securitization Corp. Rev. Bonds, Ser. B-1, 3.85%, 6/1/50 | BBB− | 2,675,000 | 2,469,161 | |
Imperial Cnty., Local Trans. Auth. Sales Tax Rev. Bonds, Ser. E, AGM, 5.00%, 6/1/32 | AA | 8,030,000 | 8,632,909 | |
Indio, Pub. Fin. Auth. Rev. Bonds, Ser. A, BAM, 5.00%, 11/1/28 | AA | 275,000 | 304,954 | |
Los Angeles Cnty., Dev. Auth. Multi-Fam. Hsg. | ||||
Mandatory Put Bonds (12/1/26), (West Los Angeles, Veteran Administration Bldg. 1), 3.75%, 12/1/46 | Aaa | 2,500,000 | 2,511,655 |
10 Strategic Intermediate Municipal Fund |
MUNICIPAL BONDS AND NOTES (100.2%)* cont. | Rating** | Principal amount | Value | |
California cont. | ||||
Los Angeles Cnty., Dev. Auth. Multi-Fam. Hsg. | ||||
Mandatory Put Bonds (7/1/26), (VA Building 402), 3.375%, 1/1/46 | Aaa | $3,250,000 | $3,250,031 | |
Los Angeles, Dept. of Arpt. Rev. Bonds | ||||
5.00%, 5/15/31 | Aa3 | 1,500,000 | 1,678,184 | |
4.00%, 5/15/35 | Aa3 | 600,000 | 614,520 | |
Los Angeles, Dept. of Arpts. Rev. Bonds, Ser. A, 5.00%, 5/15/34 | Aa2 | 5,700,000 | 5,791,478 | |
Manteca, Unif. School Dist. G.O. Bonds, Ser. A, 3.00%, 8/1/41 | Aa2 | 1,000,000 | 866,707 | |
Port of Oakland Rev. Bonds | ||||
5.00%, 5/1/28 | A2 | 750,000 | 801,396 | |
1.081%, 5/1/24 | A1 | 620,000 | 613,487 | |
San Francisco, City & Cnty. Arpt. Comm. Intl. Arpt. Rev. Bonds | ||||
Ser. C, 5.50%, 5/1/39 | A1 | 8,850,000 | 10,170,631 | |
Ser. A, 5.00%, 5/1/35 | A1 | 1,900,000 | 2,099,516 | |
Ser. A, 5.00%, 5/1/32 | A1 | 4,900,000 | 5,440,133 | |
Ser. A, 5.00%, 5/1/30 | A1 | 1,000,000 | 1,100,453 | |
Ser. A, 5.00%, 5/1/29 | A1 | 2,000,000 | 2,168,497 | |
San Francisco, City & Cnty. Arpt. Comm. Intl. Arpt. VRDN, Ser. B, 3.05%, 5/1/58 | VMIG 1 | 3,500,000 | 3,500,000 | |
San Francisco, Pub. Fac. Fin. Auth. Rev. Bonds, 5.00%, 6/1/39 | AA+ | 475,000 | 526,936 | |
Sierra View, Local Hlth. Care Dist. Rev. Bonds | ||||
5.00%, 7/1/30 | A/F | 620,000 | 676,972 | |
5.00%, 7/1/27 | A/F | 625,000 | 657,789 | |
4.00%, 7/1/26 | A/F | 300,000 | 303,646 | |
4.00%, 7/1/25 | A/F | 290,000 | 291,475 | |
4.00%, 7/1/24 | A/F | 235,000 | 235,282 | |
Tobacco Securitization Auth. of Southern CA Rev. Bonds, Ser. B-1, Class 2, 5.00%, 6/1/48 | BBB− | 7,745,000 | 7,887,533 | |
148,147,244 | ||||
Colorado (0.9%) | ||||
CO State Hlth. Fac. Auth. Hosp. Rev. Bonds, (CommonSpirit Hlth.), Ser. A, 5.00%, 11/1/25 | A− | 350,000 | 358,415 | |
Denver City & Cnty., Arpt. Rev. Bonds, Ser. D, 5.75%, 11/15/36 | Aa3 | 3,000,000 | 3,721,171 | |
E-470 Pub. Hwy. Auth. Mandatory Put Bonds (9/1/24), Ser. B, 3.908%, 9/1/39 | A1 | 4,000,000 | 3,990,986 | |
Park Creek, Metro. Dist. Ltd. Property Tax Rev. Bonds, Ser. A, AGM, 5.00%, 12/1/43 | AA | 1,500,000 | 1,638,170 | |
Regl. Trans. Dist. Rev. Bonds, (Denver Transit Partners, LLC), 3.00%, 7/15/37 | Baa1 | 850,000 | 773,674 | |
Vauxmont, Metro. Dist. G.O. Bonds, AGM | ||||
5.00%, 12/1/34 | AA | 285,000 | 315,655 | |
5.00%, 12/1/32 | AA | 250,000 | 278,022 | |
5.00%, 12/15/30 | AA | 125,000 | 130,593 | |
5.00%, 12/15/29 | AA | 125,000 | 130,660 | |
5.00%, 12/15/27 | AA | 125,000 | 130,760 | |
11,468,106 |
Strategic Intermediate Municipal Fund 11 |
MUNICIPAL BONDS AND NOTES (100.2%)* cont. | Rating** | Principal amount | Value | |
Connecticut (2.0%) | ||||
CT State Hlth. & Edl. Fac. Auth. Mandatory Put Bonds (7/1/26), (Yale U.), Ser. A-2, 2.00%, 7/1/42 | Aaa | $1,050,000 | $1,019,044 | |
CT State Hlth. & Edl. Fac. Auth. Rev. Bonds | ||||
(Masonicare Issue), Ser. F, 5.00%, 7/1/34 | BBB+/F | 1,250,000 | 1,257,562 | |
(Stamford Hosp. Oblig. Group (The)), Ser. M, 5.00%, 7/1/34 | BBB+ | 1,400,000 | 1,547,445 | |
(Masonicare Issue), Ser. F, 5.00%, 7/1/33 | BBB+/F | 250,000 | 251,569 | |
(U. of New Haven), 5.00%, 7/1/28 | BBB− | 550,000 | 569,824 | |
CT State Hlth. & Edl. Fac. Auth. VRDN, (Yale U.), Ser. A-1, 2.65%, 7/1/42 | VMIG 1 | 12,450,000 | 12,450,000 | |
CT State Hsg. Fin. Auth. Mtge. Program Rev. Bonds, Ser. A-1, 2.875%, 11/15/30 | Aaa | 2,250,000 | 2,112,651 | |
Harbor Point Infrastructure Impt. Dist. 144A Tax Alloc. Bonds, (Harbor Point Ltd.), 5.00%, 4/1/39 | BB/P | 4,000,000 | 4,050,658 | |
U. of CT Rev. Bonds, Ser. A, 5.50%, 11/15/53 | Aa3 | 3,000,000 | 3,451,082 | |
26,709,835 | ||||
Delaware (0.1%) | ||||
DE State Econ. Dev. Auth. Rev. Bonds, (ASPIRA Charter School), Ser. A, 5.00%, 6/1/36 | BB | 1,000,000 | 986,371 | |
986,371 | ||||
District of Columbia (1.2%) | ||||
DC Rev. Bonds | ||||
(KIPP DC), Ser. A, 5.00%, 7/1/48 | BBB+ | 1,250,000 | 1,264,004 | |
(Ingleside Presbyterian Retirement Cmnty.), Ser. A, 5.00%, 7/1/37 | BB/P | 1,200,000 | 1,146,828 | |
(Latin American Montessori Bilingual Pub. Charter School Oblig. Group), 4.00%, 6/1/30 | BB+ | 2,000,000 | 1,930,374 | |
DC Metro Area Transit Auth. Rev. Bonds, Ser. A | ||||
5.00%, 7/15/40 | AA | 2,000,000 | 2,294,105 | |
5.00%, 7/15/39 | AA | 2,000,000 | 2,311,281 | |
Metro. DC Arpt. Auth. Aviation Syst. Rev. Bonds, Ser. A, 5.00%, 10/1/35 | Aa3 | 3,000,000 | 3,174,885 | |
Metro. DC Arpt. Auth. Rev. Bonds, Ser. A | ||||
5.00%, 10/1/31 | Aa3 | 1,000,000 | 1,089,040 | |
5.00%, 10/1/30 | Aa3 | 910,000 | 1,006,671 | |
Metro. Washington DC, Arpt. Auth. Dulles Toll Rd. Rev. Bonds | ||||
(Dulles Metrorail & Cap. Impt. Proj.) 4.00%, 10/1/53 T | A− | 660,000 | 604,447 | |
(Dulles Metrorail & Cap. Impt. Proj.) Ser. B, 4.00%, 10/1/44 T | A− | 665,000 | 634,739 | |
15,456,374 | ||||
Florida (4.4%) | ||||
Broward Cnty., Hsg. Fin. Auth. Multi-Fam. Hsg. | ||||
Mandatory Put Bonds (3/1/26), (Pinnacle 441 Phase 2, LLC), 4.05%, 9/1/56 | Aaa | 2,000,000 | 2,019,128 | |
Mandatory Put Bonds (4/1/26), (St. Joseph Manor II, LLLP), 3.50%, 4/1/41 | Aaa | 4,000,000 | 3,992,256 | |
Cap. Projects Fin. Auth. Rev. Bonds, (CAPFA Cap. Corp. 2000F), Ser. A-1, 5.00%, 10/1/33 | Baa3 | 1,500,000 | 1,563,758 |
12 Strategic Intermediate Municipal Fund |
MUNICIPAL BONDS AND NOTES (100.2%)* cont. | Rating** | Principal amount | Value | |
Florida cont. | ||||
Cap. Projects Fin. Auth. Student Hsg. Rev. Bonds, (FL U.), Ser. A-1 | ||||
5.00%, 10/1/35 | Baa3 | $500,000 | $516,002 | |
5.00%, 10/1/32 | Baa3 | 1,000,000 | 1,045,494 | |
5.00%, 10/1/31 | Baa3 | 1,500,000 | 1,571,304 | |
Cap. Trust Agcy. 144A Rev. Bonds, (WFCS Holdings II, LLC), Ser. A-1, 3.30%, 1/1/31 | BB/P | 480,000 | 420,686 | |
Double Branch Cmnty. Dev. Dist. Special Assmt. Bonds, Ser. A-1, 4.25%, 5/1/34 | A | 360,000 | 360,144 | |
FL State Dept. of Mgt. Svcs. COP, Ser. A, 3.00%, 11/1/35 | Aa1 | 1,000,000 | 957,769 | |
FL State Dev. Fin. Corp. Ed. Fac. Rev. Bonds, (River City Ed.), 5.00%, 7/1/31 | Baa3 | 325,000 | 342,293 | |
FL State Dev. Fin. Corp. Ed. Fac. 144A Rev. Bonds, (Drs. Kiran & Pallavi Patel 2017 Foundation for Global Understanding, Inc.), 3.00%, 7/1/31 | BB/P | 200,000 | 184,480 | |
FL State Hsg. Fin. Corp. Mandatory Put Bonds (2/1/26), (Northside Property III, Ltd.), GNMA Coll., 5.00%, 2/1/27 | AA+ | 2,000,000 | 2,055,060 | |
Greater Orlando, Aviation Auth. Arpt. Fac. Rev. Bonds, Ser. A, 5.00%, 10/1/35 | A1 | 7,500,000 | 7,831,136 | |
Halifax Hosp. Med. Ctr. Rev. Bonds, 5.00%, 6/1/36 | A− | 1,375,000 | 1,403,883 | |
Lakewood Ranch, Stewardship Dist. Special Assmt. Bonds, (Taylor Ranch) | ||||
6.125%, 5/1/43 | BB−/P | 1,250,000 | 1,311,915 | |
5.45%, 5/1/33 | BB−/P | 2,685,000 | 2,798,708 | |
Miami-Dade Cnty., Hsg. Fin. Auth. Multi-Fam. Hsg. Mandatory Put Bonds (9/1/25), (Quail Roost Transit Village, Ltd.), 5.00%, 9/1/26 | AA+ | 4,000,000 | 4,076,806 | |
Miami-Dade Cnty., Hsg. Fin. Auth. Multi-Fam. Hsg. Rev. Bonds, (Cutler Vista Hsg.), 5.00%, 3/1/27 | AA+ | 3,000,000 | 3,064,088 | |
Orange Cnty., Hlth. Fac. Auth. Rev. Bonds | ||||
(Orlando Hlth.), 5.00%, 10/1/40 | A+ | 1,000,000 | 1,110,248 | |
(Orlando Hlth.), 5.00%, 10/1/39 | A+ | 1,500,000 | 1,677,050 | |
(Orlando Hlth.), 5.00%, 10/1/38 | A+ | 1,000,000 | 1,119,383 | |
(Presbyterian Retirement Cmntys.), 5.00%, 8/1/34 | A−/F | 1,000,000 | 1,004,410 | |
Palm Beach Cnty., Rev. Bonds, (Provident Group-PBAU Properties, LLC), 5.00%, 4/1/29 | Ba1 | 500,000 | 508,338 | |
Palm Beach Cnty., 144A Rev. Bonds | ||||
(PBAU Hsg.), Ser. A, 5.00%, 4/1/39 | Ba1 | 1,000,000 | 1,001,284 | |
(Provident Group-LU Properties, LLC), 4.25%, 6/1/31 | BB−/P | 1,200,000 | 1,137,486 | |
Palm Beach Cnty., Hlth. Fac. Auth. Rev. Bonds, (Acts Retirement-Life Cmnty., Inc.), 5.00%, 11/15/32 | A−/F | 2,000,000 | 2,070,803 | |
Palm Beach Cnty., School Board COP, Ser. C, 5.00%, 8/1/31 | Aa3 | 5,400,000 | 5,437,640 | |
Pinellas Cnty., Indl. Dev. Auth. Rev. Bonds, (Foundation for Global Understanding, Inc.), 5.00%, 7/1/29 | BBB/P | 2,240,000 | 2,298,586 | |
South Broward, Hosp. Dist. Rev. Bonds, 3.00%, 5/1/34 | AA | 1,190,000 | 1,121,427 |
Strategic Intermediate Municipal Fund 13 |
MUNICIPAL BONDS AND NOTES (100.2%)* cont. | Rating** | Principal amount | Value | |
Florida cont. | ||||
Southeast Overtown Park West Cmnty. Redev. Agcy. 144A Tax Alloc. Bonds, Ser. A-1, 5.00%, 3/1/30 | BBB+ | $240,000 | $240,250 | |
St. John’s Cnty., Indl. Dev. Auth. Rev. Bonds, (Life Care Ponte Vedra Oblig. Group), Ser. A | ||||
4.00%, 12/15/31 | BB+/F | 200,000 | 184,773 | |
4.00%, 12/15/30 | BB+/F | 195,000 | 182,260 | |
4.00%, 12/15/29 | BB+/F | 215,000 | 203,227 | |
Village Cmnty. Dev. Dist. No. 15 144A Special Assmt. Bonds | ||||
4.85%, 5/1/38 | BB/P | 1,000,000 | 1,005,769 | |
4.375%, 5/1/33 | BB/P | 1,000,000 | 1,008,993 | |
Village, 144A Special Assmt., (Village Cmnty. Dev. Dist. No. 13), 1.875%, 5/1/25 | BB−/P | 350,000 | 341,279 | |
57,168,116 | ||||
Georgia (3.7%) | ||||
Atlanta, Arpt. Rev. Bonds, (Dept. of Aviation), Ser. B, 5.00%, 7/1/30 | Aa3 | 3,500,000 | 3,859,790 | |
Atlanta, Wtr. & Waste Wtr. Rev. Bonds, 5.00%, 11/1/40 | Aa2 | 13,720,000 | 13,938,719 | |
Burke Cnty., Dev. Auth. Poll. Control | ||||
Mandatory Put Bonds (3/6/26), (GA Pwr. Co.), 3.875%, 10/1/32 | Baa1 | 2,250,000 | 2,256,209 | |
Mandatory Put Bonds (8/19/25), (GA Pwr. Co.), 2.875%, 12/1/49 | Baa1 | 4,250,000 | 4,170,703 | |
Mandatory Put Bonds (2/3/25), (Oglethorpe Pwr. Corp.), 1.50%, 1/1/40 | Baa1 | 1,600,000 | 1,540,322 | |
Main Street Natural Gas, Inc. Gas Supply Mandatory Put Bonds (), | ||||
Mandatory Put Bonds (9/1/31), Ser. A, 5.00%, 5/1/54 | Aa1 | 2,500,000 | 2,676,924 | |
Mandatory Put Bonds (6/1/31), Ser. E-1, 5.00%, 12/1/53 | Aa1 | 5,000,000 | 5,350,751 | |
Mandatory Put Bonds (9/1/26), Ser. C, 4.00%, 3/1/50 | A3 | 820,000 | 825,116 | |
Mandatory Put Bonds (12/2/24), Ser. B, 4.00%, 8/1/49 | Aa2 | 8,000,000 | 8,013,599 | |
Monroe Cnty., Dev. Auth. Poll. Control Mandatory Put Bonds (3/6/26), (GA Pwr. Co.), 3.875%, 10/1/48 | Baa1 | 2,000,000 | 2,005,519 | |
Muni. Election Auth. of GA Rev. Bonds | ||||
(Plant Vogtle Units 3 & 4), AGM, 5.00%, 7/1/39 | AA | 1,000,000 | 1,114,091 | |
Ser. A, 5.00%, 1/1/34 | A2 | 2,295,000 | 2,476,709 | |
(Plant Vogtle Units 3 & 4), 4.00%, 1/1/46 | BBB+ | 330,000 | 311,281 | |
48,539,733 | ||||
Hawaii (0.4%) | ||||
Honolulu City & Cnty., Multi-Fam. Mandatory Put Bonds (6/1/26), (Komohale Mauakea Venture LP), 5.00%, 6/1/27 | Aaa | 5,000,000 | 5,176,227 | |
5,176,227 |
14 Strategic Intermediate Municipal Fund |
MUNICIPAL BONDS AND NOTES (100.2%)* cont. | Rating** | Principal amount | Value | |
Illinois (7.2%) | ||||
Chicago, G.O. Bonds, Ser. A | ||||
5.00%, 1/1/35 | BBB+ | $3,000,000 | $3,302,054 | |
4.00%, 1/1/36 | BBB+ | 1,000,000 | 1,013,102 | |
Chicago, Board of Ed. G.O. Bonds, Ser. A, 5.00%, 12/1/39 | BB+ | 1,000,000 | 1,030,395 | |
Chicago, Midway Intl. Arpt. Rev. Bonds, Ser. A, BAM | ||||
5.75%, 1/1/43 | AA | 1,250,000 | 1,426,348 | |
5.75%, 1/1/42 | AA | 1,000,000 | 1,144,680 | |
5.75%, 1/1/41 | AA | 500,000 | 575,025 | |
Chicago, O’Hare Intl. Arpt. Rev. Bonds | ||||
BAM, 5.25%, 1/1/40 | AA | 1,700,000 | 1,899,035 | |
BAM, 5.25%, 1/1/39 | AA | 1,195,000 | 1,343,333 | |
Ser. A, 5.00%, 1/1/34 | A+ | 5,600,000 | 5,652,415 | |
Ser. A, 5.00%, 1/1/33 | A+ | 1,715,000 | 1,731,263 | |
Ser. B, 5.00%, 1/1/32 | A+ | 5,840,000 | 5,921,802 | |
Chicago, Waste Wtr. Transmission Rev. Bonds, Ser. C | ||||
5.00%, 1/1/34 | A+ | 400,000 | 405,588 | |
5.00%, 1/1/33 | A+ | 405,000 | 410,854 | |
IL State G.O. Bonds | ||||
Ser. B, 5.25%, 5/1/39 | A3 | 5,900,000 | 6,583,227 | |
5.00%, 11/1/41 | A3 | 600,000 | 611,746 | |
5.00%, 1/1/41 | A3 | 340,000 | 345,036 | |
5.00%, 11/1/34 | A3 | 1,650,000 | 1,707,820 | |
Ser. D, 5.00%, 11/1/27 | A3 | 920,000 | 981,062 | |
4.125%, 11/1/31 | A3 | 830,000 | 843,579 | |
4.00%, 1/1/31 | A3 | 695,000 | 702,372 | |
IL State Fin. Auth. | ||||
Mandatory Put Bonds (8/15/25), (U. of Chicago Med. Ctr.), Ser. B-1, 5.00%, 8/15/52 | AA+ | 2,350,000 | 2,397,432 | |
Mandatory Put Bonds (11/15/26), (OSF Hlth. Care Syst. Oblig. Group), Ser. B-2, 5.00%, 5/15/50 | A | 1,000,000 | 1,036,018 | |
IL State Fin. Auth. Rev. Bonds | ||||
(Ascension Hlth. Credit Group), Ser. C, 5.00%, 2/15/34 | AA+ | 1,100,000 | 1,151,731 | |
(Rosalind Franklin U. of Medicine and Science), Ser. A, 5.00%, 8/1/31 | BBB+ | 400,000 | 416,472 | |
(Art Institute of Chicago (The)), 5.00%, 3/1/30 | AA | 1,500,000 | 1,557,836 | |
IL State Fin. Auth. 144A Rev. Bonds, (Acero Charter Schools, Inc.) | ||||
4.00%, 10/1/34 | BB+ | 445,000 | 413,771 | |
4.00%, 10/1/33 | BB+ | 1,060,000 | 995,767 | |
4.00%, 10/1/32 | BB+ | 685,000 | 649,288 | |
IL State Fin. Auth. Student Hsg. & Academic Fac. Rev. Bonds | ||||
(U. of IL Chicago), 5.00%, 2/15/50 | Baa3 | 460,000 | 443,768 | |
(CHF-Chicago, LLC), 5.00%, 2/15/47 | Baa3 | 500,000 | 487,308 | |
IL State Fin. Auth. Wtr. Fac. Mandatory Put Bonds (9/1/28), 3.875%, 5/1/40 | A | 2,250,000 | 2,273,407 | |
IL State Hsg. Dev. Auth. Multi-Fam. Hsg. Mandatory Put Bonds (6/1/25), (South Shore Preservation LP), FHA Insd., 4.00%, 6/1/26 | Aaa | 5,500,000 | 5,520,216 |
Strategic Intermediate Municipal Fund 15 |
MUNICIPAL BONDS AND NOTES (100.2%)* cont. | Rating** | Principal amount | Value | |
Illinois cont. | ||||
IL State Toll Hwy. Auth. Rev. Bonds | ||||
Ser. A, 5.00%, 1/1/42 | Aa3 | $1,500,000 | $1,698,483 | |
Ser. A, 5.00%, 1/1/41 | Aa3 | 1,250,000 | 1,421,448 | |
Ser. A, 5.00%, 1/1/40 | Aa3 | 12,850,000 | 13,092,221 | |
Ser. B, 5.00%, 1/1/40 | Aa3 | 10,000,000 | 10,262,338 | |
Ser. A, 5.00%, 1/1/38 | Aa3 | 2,000,000 | 2,338,830 | |
Metro. Pier & Exposition Auth. Rev. Bonds, (McCormick Place Expansion), Ser. B, 5.00%, 12/15/33 | A | 300,000 | 317,895 | |
Romeoville, Rev. Bonds, (Lewis U.) | ||||
5.00%, 10/1/29 | BBB | 975,000 | 986,623 | |
5.00%, 10/1/27 | BBB | 860,000 | 869,895 | |
5.00%, 10/1/26 | BBB | 500,000 | 505,469 | |
Sales Tax Securitization Corp. Rev. Bonds, (Second Lien), Ser. C, 5.00%, 1/1/34 | AA− | 4,000,000 | 4,577,242 | |
U. of IL Rev. Bonds, (Hlth. Svcs. Fac. Syst.) | ||||
5.50%, 10/1/41 | A2 | 1,660,000 | 1,890,601 | |
5.50%, 10/1/40 | A2 | 605,000 | 689,728 | |
5.50%, 10/1/39 | A2 | 380,000 | 435,338 | |
94,059,861 | ||||
Indiana (1.1%) | ||||
IN State Fin. Auth. Waste Wtr. Util. Rev. Bonds, (CWA Auth., Inc.) | ||||
5.00%, 10/1/42 ## | AA | 1,350,000 | 1,481,625 | |
5.00%, 10/1/41 ## | AA | 1,000,000 | 1,102,480 | |
5.00%, 10/1/40 ## | AA | 615,000 | 681,742 | |
5.00%, 10/1/39 ## | AA | 600,000 | 669,843 | |
Ser. A, 5.00%, 10/1/39 | AA | 875,000 | 999,629 | |
5.00%, 10/1/38 ## | AA | 500,000 | 559,466 | |
IN State Fin. Auth. Wtr. Util. Rev. Bonds, (Board of Directors for Dept. of Pub. Util. of Indianapolis), Ser. 23-A, 5.00%, 10/1/40 | AA | 1,500,000 | 1,704,695 | |
IN State. Fin. Auth. Rev. Bonds, (Rose-Hulman Inst. of Tech., Inc.) | ||||
5.00%, 6/1/32 | A2 | 200,000 | 221,340 | |
5.00%, 6/1/31 | A2 | 200,000 | 221,784 | |
5.00%, 6/1/30 | A2 | 200,000 | 221,775 | |
5.00%, 6/1/29 | A2 | 175,000 | 191,075 | |
5.00%, 6/1/28 | A2 | 100,000 | 107,334 | |
5.00%, 6/1/27 | A2 | 180,000 | 190,064 | |
Indianapolis, Local Pub. Impt. Bond Bk. Rev. Bonds, Ser. A, 5.00%, 2/1/44 | Aa1 | 1,175,000 | 1,242,168 | |
Rockport, Poll. Control Rev. Bonds, (AEP Generating Co.), 3.125%, 7/1/25 | A− | 4,150,000 | 4,095,098 | |
Silver Creek, School Bldg. Corp. Rev. Bonds | ||||
3.00%, 1/15/36 | AA+ | 500,000 | 483,937 | |
3.00%, 1/15/34 | AA+ | 375,000 | 371,785 | |
14,545,840 |
16 Strategic Intermediate Municipal Fund |
MUNICIPAL BONDS AND NOTES (100.2%)* cont. | Rating** | Principal amount | Value | |
Iowa (0.3%) | ||||
IA State Fin. Auth. Rev. Bonds | ||||
(Lifespace Cmnty., Inc.), Ser. B, 6.60%, 5/15/28 | BBB/F | $1,500,000 | $1,523,288 | |
(Lifespace Cmnty., Inc. Oblig. Group), Ser. A, 4.00%, 5/15/46 | BBB/F | 1,150,000 | 783,069 | |
IA State Fin. Auth. Solid Waste Fac. Mandatory Put Bonds (4/1/24), (Gevo NW Iowa RNG, LLC), 1.50%, 1/1/42 | Aa3 | 1,700,000 | 1,688,948 | |
3,995,305 | ||||
Kentucky (2.3%) | ||||
Columbia Edl. Dev. Rev. Bonds, (Lindsey Wilson College), 5.00%, 12/1/33 | BBB | 3,000,000 | 3,058,718 | |
KY Econ. Dev. Fin. Auth. Rev. Bonds, (KY Wired Infrastructure Co., Inc.), 5.00%, 7/1/30 | Baa1 | 2,080,000 | 2,106,327 | |
KY State Pub. Energy Auth. Gas Supply | ||||
Mandatory Put Bonds (6/1/25), Ser. C-1, 4.00%, 12/1/49 | A1 | 675,000 | 676,142 | |
Mandatory Put Bonds (1/1/25), Ser. B, 4.00%, 1/1/49 | A1 | 3,335,000 | 3,338,915 | |
Louisville & Jefferson Cnty., Metro. Govt. Hlth. Syst. Rev. Bonds | ||||
(Norton Hlth. Care), Ser. A, 5.00%, 10/1/41 | A | 4,700,000 | 5,112,441 | |
(Norton Healthcare), Ser. A, 5.00%, 10/1/31 | A | 2,750,000 | 2,859,283 | |
Louisville and Jefferson Cnty., Metro. Govt. Poll. Control Mandatory Put Bonds (7/1/26), (Louisville Gas and Elec. Co.), 1.75%, 2/1/35 | A1 | 5,000,000 | 4,804,182 | |
Rural Wtr. Fin. Agcy. Rev. Bonds, Ser. A, 3.90%, 11/1/25 | AAA/P | 3,000,000 | 3,000,126 | |
Trimble Cnty., Env. Fac. Mandatory Put Bonds (6/1/27), (Louisville Gas and Elec. Co.), 4.70%, 6/1/54 | A1 | 5,000,000 | 5,069,116 | |
30,025,250 | ||||
Louisiana (0.1%) | ||||
St. John The Baptist Parish Mandatory Put Bonds (7/1/26), (Marathon Oil Corp.), Ser. A-3, 2.20%, 6/1/37 | Baa3 | 2,000,000 | 1,897,603 | |
1,897,603 | ||||
Maryland (1.3%) | ||||
Frederick Cnty., Tax Alloc. Bonds, (Oakdale-Lake Linganore Dev. Dist.), 3.25%, 7/1/29 | BBB−/P | 890,000 | 846,246 | |
Frederick Cnty., Edl. Fac. 144A Rev. Bonds, (Mount. St. Mary’s U., Inc.), Ser. A, 5.00%, 9/1/27 | BB+ | 2,660,000 | 2,677,205 | |
Gaithersburg, Econ. Dev. Rev. Bonds, (Asbury, Oblig. Group), Ser. A, 5.00%, 1/1/36 | BBB/F | 300,000 | 302,531 | |
MD State Econ. Dev. Corp. Tax Alloc. Bonds, (Port Covington Dev. Dist.), 3.25%, 9/1/30 | BB/P | 1,500,000 | 1,432,243 | |
MD State Hlth. & Higher Ed. Fac. Auth. Rev. Bonds, (Stevenson U.), 4.00%, 6/1/34 | BBB− | 250,000 | 249,196 | |
MD State Trans. Auth. Fac. Trans. Fac. Rev. Bonds, Ser. A, 5.00%, 7/1/46 | Aa2 | 10,000,000 | 10,980,465 | |
16,487,886 |
Strategic Intermediate Municipal Fund 17 |
MUNICIPAL BONDS AND NOTES (100.2%)* cont. | Rating** | Principal amount | Value | |
Massachusetts (2.2%) | ||||
MA State Dept. Trans. Metro. Hwy. Syst. VRDN, Ser. A-1, 3.85%, 1/1/37 | VMIG 1 | $7,500,000 | $7,500,000 | |
MA State Dev. Fin. Agcy. Rev. Bonds, (Simmons U.), Ser. N | ||||
5.25%, 10/1/39 | Baa2 | 580,000 | 616,150 | |
5.25%, 10/1/38 | Baa2 | 550,000 | 588,197 | |
5.25%, 10/1/37 | Baa2 | 545,000 | 587,961 | |
5.25%, 10/1/36 | Baa2 | 500,000 | 544,298 | |
MA State Dev. Fin. Agcy. VRDN, (Boston U.), Ser. U-6E, 3.05%, 10/1/42 | VMIG 1 | 4,185,000 | 4,185,000 | |
MA State Dev. Fin. Agcy. 144A Rev. Bonds, (Loomis Oblig. Group), 4.00%, 1/1/26 | BBB | 320,000 | 319,582 | |
MA State Dev. Fin. Agcy. VRDN (Boston U.), Ser. U-6C, 2.95%, 10/1/42 | VMIG 1 | 950,000 | 950,000 | |
MA State Hlth. & Edl. Fac. Auth. VRDN (Baystate Total Home Care, Inc.), 3.15%, 7/1/39 | A-1+ | 5,500,000 | 5,500,000 | |
MA State Hsg. Fin. Agcy. Mandatory Put Bonds (6/1/25), Ser. 216, FHLMC Coll., FNMA Coll., GNMA Coll., 1.85%, 12/1/50 | Aa1 | 1,000,000 | 972,752 | |
MA State Hsg. Fin. Agcy. Rev. Bonds, Ser. D, 3.10%, 6/1/30 | AA+ | 720,000 | 701,514 | |
MA State Port Auth. Rev. Bonds, Ser. B, 4.00%, 7/1/46 | Aa2 | 6,045,000 | 5,830,057 | |
28,295,511 | ||||
Michigan (2.6%) | ||||
Detroit, G.O. Bonds | ||||
5.50%, 4/1/34 | Ba1 | 660,000 | 722,957 | |
(Fin. Recvy.), Ser. B-1, 4.00%, 4/1/44 | BB/P | 4,500,000 | 3,405,578 | |
Great Lakes, Wtr. Auth. Wtr. Supply Syst. Rev. Bonds, Ser. A, 5.00%, 7/1/38 | Aa3 | 1,000,000 | 1,163,882 | |
Kalamazoo, Pub. Schools G.O. Bonds, Ser. I, AGM | ||||
5.00%, 5/1/48 | AA | 820,000 | 883,325 | |
5.00%, 5/1/45 | AA | 885,000 | 964,700 | |
Kentwood, Economic Dev. Corp. Rev. Bonds, (Holland Home Oblig. Group), 5.00%, 11/15/37 | BBB−/F | 1,000,000 | 974,653 | |
MI State Bldg. Auth. Rev. Bonds, Ser. II | ||||
5.00%, 10/15/42 | Aa2 | 1,350,000 | 1,530,862 | |
5.00%, 10/15/41 | Aa2 | 1,000,000 | 1,134,493 | |
5.00%, 10/15/40 | Aa2 | 750,000 | 858,044 | |
5.00%, 10/15/39 | Aa2 | 650,000 | 748,148 | |
MI State Fin. Auth. Rev. Bonds | ||||
Ser. H-1, 5.00%, 10/1/39 (Prerefunded 10/1/24) | AA− | 525,000 | 527,408 | |
(Local Govt. Loan Program — Detroit Wtr. & Swr. Dept. (DWSD)), Ser. C, 5.00%, 7/1/35 | A1 | 1,000,000 | 1,014,634 | |
(Great Lakes Wtr. Auth. Wtr. Supply Syst.), 5.00%, 7/1/31 | Aa3 | 6,500,000 | 6,542,791 | |
(Detroit, Regl. Convention Fac. Auth.), Ser. H-1, 5.00%, 10/1/28 | AA− | 1,955,000 | 1,975,881 | |
(Detroit), Ser. C-3, 5.00%, 4/1/28 | Aa2 | 700,000 | 734,366 | |
(Tobacco Settlement), Ser. A-1, 2.326%, 6/1/30 | A | 251,214 | 247,021 |
18 Strategic Intermediate Municipal Fund |
MUNICIPAL BONDS AND NOTES (100.2%)* cont. | Rating** | Principal amount | Value | |
Michigan cont. | ||||
MI State Fin. Auth. Ltd. Oblig. Rev. Bonds | ||||
(Lawrence Technological U.), 5.25%, 2/1/32 | BBB− | $1,145,000 | $1,169,876 | |
(Lawrence Technological U.), 5.00%, 2/1/47 | BBB− | 2,000,000 | 1,890,981 | |
(Lawrence Tech. U.), 4.00%, 2/1/32 | BBB− | 285,000 | 274,267 | |
(Lawrence Tech. U.), 4.00%, 2/1/27 | BBB− | 140,000 | 137,304 | |
MI State Strategic Fund Ltd. Oblig. Rev. Bonds, (Holland Home Oblig. Group), 5.00%, 11/15/34 | BBB−/F | 1,900,000 | 1,898,288 | |
MI State U. Rev. Bonds, Ser. B, 5.00%, 2/15/44 | Aa2 | 3,000,000 | 3,215,044 | |
Wayne Cnty., Arpt. Auth. Rev. Bonds, Ser. F, 5.00%, 12/1/30 | A1 | 1,840,000 | 1,874,771 | |
33,889,274 | ||||
Minnesota (2.3%) | ||||
Duluth, COP, (Indpt. School Dist. No. 709), Ser. A | ||||
4.20%, 3/1/34 | Baa1 | 750,000 | 743,894 | |
4.00%, 3/1/32 | Baa1 | 2,715,000 | 2,676,212 | |
Duluth, Econ. Dev. Auth. Rev. Bonds, (Benedictine Hlth. Syst. Oblig. Group), Ser. A, 4.00%, 7/1/31 | BB/P | 625,000 | 573,533 | |
Duluth, Econ. Dev. Auth. Hlth. Care Fac. Rev. Bonds, (St. Luke’s Hosp. of Duluth Oblig. Group) | ||||
5.00%, 6/15/32 | BB+ | 975,000 | 1,054,656 | |
5.00%, 6/15/30 | BB+ | 830,000 | 884,256 | |
Hennepin Cnty., VRDN, Ser. B, 3.70%, 12/1/38 | A-1+ | 1,250,000 | 1,250,000 | |
Minneapolis, Hlth. Care Syst. Rev. Bonds, (Fairview Hlth. Svcs.), Ser. A, 5.00%, 11/15/33 | Baa1 | 2,410,000 | 2,508,408 | |
Minneapolis, Hlth. Care Syst. VRDN (Fairview Hlth. Svcs. Oblig. Group), Ser. B, 3.55%, 11/15/48 | VMIG 1 | 1,500,000 | 1,500,000 | |
MN State COP, 5.00%, 11/1/40 | AA+ | 6,500,000 | 7,540,153 | |
MN State Agriculture & Econ. Dev. Board Rev. Bonds, (HealthPartners), 5.00%, 1/1/40 ## | A2 | 1,800,000 | 2,036,068 | |
MN State Higher Ed. Fac. Auth. Rev. Bonds, (Augsburg U.), Ser. A, 5.00%, 5/1/46 | Ba1 | 750,000 | 686,858 | |
MN State Rural Wtr. Fin. Auth. Rev. Bonds, (Pub. Projects Construction), 4.375%, 4/1/25 | AAA/P | 2,000,000 | 2,006,768 | |
Ramsey, Charter School Rev. Bonds, (PACT Charter School), Ser. A, 5.00%, 6/1/32 | BB+ | 1,400,000 | 1,410,975 | |
Rochester, Hlth. Care Fac. VRDN, (Mayo Clinic), Ser. B, 3.90%, 11/15/38 | VMIG 1 | 1,500,000 | 1,500,000 | |
St. Paul, Hsg. & Redev. Auth. Charter School Lease Rev. Bonds, (Hmong College Prep Academy), 5.50%, 9/1/36 | BB+ | 3,000,000 | 3,040,103 | |
St. Paul, Port Auth. Dist. Energy Rev. Bonds, Ser. 23-4, 5.25%, 10/1/42 | A− | 1,000,000 | 1,039,192 | |
30,451,076 | ||||
Missouri (2.9%) | ||||
Kansas City, Indl. Dev. auth. Arpt. Rev. Bonds, 5.00%, 3/1/35 | A2 | 5,000,000 | 5,300,463 | |
Kansas City, Indl. Dev. Auth. Arpt. Special Oblig. Rev. Bonds | ||||
(Kansas City, Intl. Arpt.), 5.00%, 3/1/32 | A2 | 1,000,000 | 1,063,126 | |
(Kansas City Intl. Arpt.), 5.00%, 3/1/30 | A2 | 1,540,000 | 1,666,364 |
Strategic Intermediate Municipal Fund 19 |
MUNICIPAL BONDS AND NOTES (100.2%)* cont. | Rating** | Principal amount | Value | |
Missouri cont. | ||||
MI State Hlth. & Edl. Fac. Rev. Bonds | ||||
(U. of Hlth. Sciences & Pharmacy in St. Louis), 5.00%, 5/1/28 | BBB− | $1,775,000 | $1,809,108 | |
(U. of Hlth. Sciences & Pharmacy in St. Louis), 4.00%, 5/1/43 | BBB− | 1,750,000 | 1,463,917 | |
(U. of Hlth. Sciences & Pharmacy in St. Louis), 4.00%, 5/1/40 | BBB− | 615,000 | 532,476 | |
(U. of Hlth. Sciences & Pharmacy in St. Louis), 4.00%, 5/1/39 | BBB− | 3,750,000 | 3,298,374 | |
(U. of Hlth. Sciences & Pharmacy in St. Louis), 4.00%, 5/1/37 | BBB− | 2,600,000 | 2,359,681 | |
MI State Hlth. & Edl. Fac. 144A Rev. Bonds, (U. of Hlth. Sciences & Pharmacy in St. Louis), 4.00%, 5/1/45 | BBB− | 1,280,000 | 1,046,315 | |
MI State Hlth. & Edl. Fac. Auth. Rev. Bonds, (U. of Hlth. Sciences & Pharmacy in St. Louis) | ||||
4.00%, 5/1/39 | BBB− | 1,250,000 | 1,099,458 | |
4.00%, 5/1/38 | BBB− | 1,440,000 | 1,285,390 | |
MO State Hlth. & Ed. Fac. Auth. Hlth. Fac. Rev. Bonds, (Children’s Mercy Hosp.), 4.00%, 5/15/39 | AA− | 1,595,000 | 1,596,892 | |
MO State Hlth. & Edl. Fac. Auth. Rev. Bonds | ||||
(Mercy Hlth.), 5.50%, 12/1/41 | A1 | 2,100,000 | 2,425,896 | |
(Mercy Hlth.), 5.50%, 12/1/40 | A1 | 1,100,000 | 1,275,587 | |
(Children’s Mercy Hosp. (The)), Ser. A, 4.00%, 5/15/42 | AA− | 3,195,000 | 3,161,743 | |
MO State Hlth. & Edl. Fac. Auth. VRDN, (St. Louis U.), Ser. B-2, 3.10%, 10/1/35 | VMIG 1 | 1,155,000 | 1,155,000 | |
MO State Hlth. & Edl. Fac. Auth. Hlth. Fac. Rev. Bonds, (Mercy Health), BAM, 4.00%, 11/15/42 | AA | 1,555,000 | 1,555,086 | |
Plaza at Noah’s Ark Cmnty. Impt. Dist. Rev. Bonds | ||||
3.00%, 5/1/26 | B+/P | 275,000 | 264,857 | |
3.00%, 5/1/25 | B+/P | 225,000 | 220,038 | |
3.00%, 5/1/24 | B+/P | 200,000 | 199,230 | |
Poplar Bluff, Regl. Trans. Dist. Rev. Bonds, Ser. B | ||||
4.00%, 12/1/37 | BBB | 2,300,000 | 2,315,565 | |
3.375%, 12/1/31 | BBB | 1,500,000 | 1,488,631 | |
St. Louis, Arpt. Rev. Bonds, 5.00%, 7/1/30 | A2 | 1,430,000 | 1,555,388 | |
38,138,585 | ||||
Montana (0.2%) | ||||
Forsyth, Poll. Control Rev. Bonds, (NorthWestern Corp.), 3.875%, 7/1/28 | A3 | 2,200,000 | 2,232,715 | |
2,232,715 | ||||
Nebraska (0.4%) | ||||
Omaha, Pub. Pwr. Dist. Rev. Bonds, Ser. A, 5.00%, 2/1/46 | Aa2 | 5,000,000 | 5,409,127 | |
5,409,127 | ||||
Nevada (1.1%) | ||||
Clark Cnty., Poll. Control Mandatory Put Bonds (3/31/26), (NV Pwr. Co.), 3.75%, 1/1/36 | A2 | 2,250,000 | 2,247,167 | |
Clark Cnty., School Dist. G.O. Bonds | ||||
Ser. C, 5.00%, 6/15/28 | AA− | 4,000,000 | 4,151,464 | |
Ser. B, BAM, 3.00%, 6/15/36 | AA | 1,000,000 | 934,492 |
20 Strategic Intermediate Municipal Fund |
MUNICIPAL BONDS AND NOTES (100.2%)* cont. | Rating** | Principal amount | Value | |
Nevada cont. | ||||
Las Vegas, Convention and Visitors Auth. Convention Ctr. Expansion Rev. Bonds, (Cnty. of Clark & City of Las Vegas Combined Room Tax), Ser. A | ||||
5.00%, 7/1/43 | Aa3 | $1,205,000 | $1,337,276 | |
5.00%, 7/1/42 | Aa3 | 1,200,000 | 1,341,313 | |
5.00%, 7/1/41 | Aa3 | 1,000,000 | 1,123,378 | |
5.00%, 7/1/40 | Aa3 | 1,550,000 | 1,748,863 | |
5.00%, 7/1/39 | Aa3 | 760,000 | 861,912 | |
13,745,865 | ||||
New Hampshire (0.6%) | ||||
National Fin. Auth. Rev. Bonds | ||||
(NH Bus. Fin. Auth.), Ser. 23-2, 3.875%, 1/20/38 | BBB | 5,072,264 | 4,786,262 | |
(Caritas Acquisitions VII, LLC), Ser. A, 3.75%, 8/15/30 | BBB/P | 1,050,000 | 991,011 | |
NH State Hlth. & Ed. Fac. Auth. Rev. Bonds, (Southern NH Med. Ctr.), 5.00%, 10/1/37 | A− | 2,000,000 | 2,049,463 | |
7,826,736 | ||||
New Jersey (2.2%) | ||||
Camden Cnty., Impt. Auth. Multi-Fam. Mandatory Put Bonds (3/1/26), 5.00%, 3/1/27 | Aaa | 4,000,000 | 4,123,518 | |
NJ State G.O. Bonds, (Covid-19 Emergency Bonds), Ser. A, 3.00%, 6/1/32 | A1 | 4,000,000 | 3,897,943 | |
NJ State Econ. Dev. Auth. | ||||
Mandatory Put Bonds (6/1/28), (American Wtr. Co., Inc.), 3.75%, 11/1/34 | A1 | 3,000,000 | 3,012,467 | |
Mandatory Put Bonds (12/3/29), (American Water Co., Inc.), 2.20%, 10/1/39 | A1 | 3,500,000 | 3,124,118 | |
NJ State Econ. Dev. Auth. Rev. Bonds | ||||
Ser. SSS, 5.25%, 6/15/39 ## | A2 | 1,000,000 | 1,155,760 | |
Ser. SSS, 5.25%, 6/15/38 ## | A2 | 1,585,000 | 1,839,603 | |
Ser. SSS, 5.25%, 6/15/37 ## | A2 | 1,060,000 | 1,240,581 | |
Ser. AAA, 5.00%, 6/15/36 (Prerefunded 12/15/26) | A2 | 350,000 | 372,972 | |
Ser. SSS, 5.00%, 6/15/34 ## | A2 | 1,000,000 | 1,174,695 | |
NJ State Edl. Fac. Auth. Rev. Bonds, (William Paterson U. of NJ (The)), Ser. C, AGM | ||||
5.00%, 7/1/27 | AA | 100,000 | 106,075 | |
5.00%, 7/1/26 | AA | 100,000 | 104,100 | |
5.00%, 7/1/25 | AA | 100,000 | 102,305 | |
NJ State Trans. Trust Fund Auth. Rev. Bonds | ||||
(Federal Hwy. Reimbursement Notes), 5.00%, 6/15/28 | A+ | 750,000 | 782,975 | |
Ser. AA, 5.00%, 6/15/26 | A2 | 1,000,000 | 1,048,521 | |
Ser. A, 4.25%, 6/15/40 | A2 | 2,000,000 | 2,072,570 | |
Passaic Cnty., Impt. Auth. Rev. Bonds, (Paterson Arts & Science Charter School), 4.25%, 7/1/33 | BBB− | 620,000 | 635,639 | |
South Jersey, Trans. Auth. Syst. Rev. Bonds, Ser. A | ||||
5.00%, 11/1/40 | BBB+ | 2,500,000 | 2,700,879 | |
5.00%, 11/1/38 | BBB+ | 1,140,000 | 1,245,560 | |
BAM, 5.00%, 11/1/37 | AA | 250,000 | 279,114 | |
29,019,395 |
Strategic Intermediate Municipal Fund 21 |
MUNICIPAL BONDS AND NOTES (100.2%)* cont. | Rating** | Principal amount | Value | |
New Mexico (0.6%) | ||||
Farmington, Poll. Control Rev. Bonds, (Pub. Service Co. of NM), Ser. B, 2.15%, 4/1/33 | Baa2 | $2,000,000 | $1,645,876 | |
NM State Mtge. Fin. Auth. Multi-Fam. Hsg. | ||||
Mandatory Put Bonds (9/1/25), (Mountain View II & III Apt.), 5.00%, 2/1/42 | Aaa | 1,000,000 | 1,015,839 | |
Mandatory Put Bonds (6/1/25), (Santa Fe Apt.), 5.00%, 2/1/42 | Aaa | 4,750,000 | 4,787,653 | |
Sante Fe, Retirement Fac. Rev. Bonds, (El Castillo Retirement Res.), 5.00%, 5/15/42 | BB+/F | 980,000 | 880,021 | |
8,329,389 | ||||
New York (12.2%) | ||||
Albany, Cap. Resource Corp. Rev. Bonds, (Empire Commons Student Hsg., Inc.) | ||||
5.00%, 5/1/26 | A | 400,000 | 410,711 | |
Ser. A, 5.00%, 5/1/25 | A | 645,000 | 654,333 | |
5.00%, 5/1/24 | A | 575,000 | 576,494 | |
Build NY City Resource Corp. Rev. Bonds | ||||
(Classical Charter School, Inc.), 4.00%, 6/15/33 | BBB− | 970,000 | 983,248 | |
(Global Cmnty. Charter School), 4.00%, 6/15/32 | BB+ | 500,000 | 492,291 | |
(Grand Concourse Academy Charter School), 3.40%, 7/1/27 | BBB− | 245,000 | 241,810 | |
Build NY City Resource Corp. 144A Rev. Bonds | ||||
(Unity Preparatory Charter School of Brooklyn), 5.00%, 6/15/33 | BB | 665,000 | 691,188 | |
(East Harlem Scholars Academy Charter School), 5.00%, 6/1/32 | BB+ | 375,000 | 387,501 | |
Dutchess Cnty., Local Dev. Corp. Rev. Bonds, (Culinary Inst. of America (The)), 5.00%, 7/1/34 | Baa2 | 500,000 | 525,167 | |
Metro. Trans. Auth. VRDN, Ser. E-1, 3.20%, 11/15/50 | VMIG 1 | 3,000,000 | 3,000,000 | |
Monroe Cnty., Indl. Dev. Agcy. Multi-Fam. Rev. Bonds, (Andrews Terrace Cmnty. Partners LP), 4.72%, 1/1/44 | Aaa | 5,000,000 | 5,094,097 | |
NY City, VRDN | ||||
(Fiscal 2023), Ser. A-4, 3.15%, 9/1/49 | VMIG 1 | 1,500,000 | 1,500,000 | |
Ser. I-2, 3.10%, 3/1/40 | VMIG 1 | 11,100,000 | 11,100,000 | |
NY City, Hsg. Dev. Corp. Mandatory Put Bonds (12/22/26), (Sustainable Dev.), Ser. F-2-B, FHA Insd., 3.40%, 11/1/62 | AA+ | 12,750,000 | 12,713,513 | |
NY City, Hsg. Dev. Corp. Multi-Fam. Hsg. Mandatory Put Bonds (12/30/27), (Sustainable Dev.), Ser. A-2, 3.70%, 5/1/63 | AA+ | 10,000,000 | 10,048,795 | |
NY City, Hsg. Dev. Corp. Multi-Fam. Hsg. Rev. Bonds, (Sustainability Bonds), Ser. I-1, FHA Insd., 2.55%, 11/1/45 | AA+ | 6,255,000 | 4,630,804 | |
NY City, Indl. Dev. Agcy. Rev. Bonds, (Queens Ballpark Co., LLC), Ser. A, AGM, 3.00%, 1/1/46 | AA | 7,000,000 | 5,527,153 | |
NY City, Muni. Wtr. & Swr. Syst. Fin. Auth. Rev. Bonds | ||||
Ser. EE, 5.00%, 6/15/45 | Aa1 | 2,730,000 | 3,034,525 | |
Ser. A, 5.00%, 6/15/43 | Aa1 | 1,800,000 | 2,048,818 | |
Ser. DD, 5.00%, 6/15/40 | Aa1 | 3,320,000 | 3,536,262 |
22 Strategic Intermediate Municipal Fund |
MUNICIPAL BONDS AND NOTES (100.2%)* cont. | Rating** | Principal amount | Value | |
New York cont. | ||||
NY City, Muni. Wtr. & Swr. Syst. Fin. Auth. VRDN | ||||
Ser. DD-1, 3.15%, 6/15/43 | VMIG 1 | $4,835,000 | $4,835,000 | |
Ser. F-2, 3.40%, 6/15/35 | VMIG 1 | 1,130,000 | 1,130,000 | |
NY City, Transitional Fin. Auth. Rev. Bonds | ||||
Ser. E-1, 5.00%, 11/1/40 | AAA | 4,000,000 | 4,583,967 | |
(Future Tax Secd.), Ser. B1, 5.00%, 11/1/32 | AAA | 9,000,000 | 9,030,322 | |
NY City, Transitional Fin. Auth. VRDN, 3.10%, 2/1/45 | VMIG 1 | 16,000,000 | 16,000,000 | |
NY State Dorm. Auth. Personal Income Tax Rev. Bonds | ||||
Ser. A, 5.00%, 3/15/40 | Aa1 | 655,000 | 714,254 | |
Ser. A-3, 3.00%, 3/15/39 | Aa1 | 7,915,000 | 7,240,219 | |
NY State Energy Research & Dev. Auth. Poll. Control Rev. Bonds, (NY State Elec. & Gas Corp.), Ser. C, 4.00%, 4/1/34 | A− | 3,700,000 | 3,813,846 | |
NY State Hsg. Fin. Agcy. Rev. Bonds, Ser. C, GNMA Coll., FNMA Coll., FHLMC Coll., 3.05%, 11/1/36 | Aa2 | 1,500,000 | 1,388,834 | |
NY State Hsg. Fin. Agcy. VRDN (8 East 102nd St., LLC), Ser. A, 3.75%, 5/1/44 | VMIG 1 | 1,780,000 | 1,780,000 | |
NY State Hsg. Fin. Agcy. Affordable Hsg. Rev. Bonds, (Sustainability Bonds), Ser. C-1, 4.50%, 11/1/43 | Aa2 | 1,000,000 | 1,005,938 | |
NY State Liberty Dev. Corp. Rev. Bonds, (Port Auth. of NY & NJ), Ser. 1WTC, 2.75%, 2/15/44 | AA− | 7,750,000 | 5,930,788 | |
NY State Mtge. Agcy. Rev. Bonds, Ser. 196, 2.60%, 4/1/25 | Aa1 | 750,000 | 740,822 | |
NY State Trans. Special Fac. Dev. Corp. Rev. Bonds | ||||
(Delta Air Lines, Inc.), 5.625%, 4/1/40 | Baa3 | 4,000,000 | 4,340,792 | |
(JFK New Terminal One, LLC), AGM, 5.50%, 6/30/42 | AA | 1,750,000 | 1,943,010 | |
(JFK New Terminal One, LLC), 5.50%, 6/30/40 | Baa3 | 875,000 | 965,752 | |
(JFK New Terminal One, LLC), 5.50%, 6/30/39 | Baa3 | 1,000,000 | 1,109,645 | |
(JFK New Terminal One, LLC), 5.50%, 6/30/38 | Baa3 | 2,000,000 | 2,225,966 | |
(Delta Air Lines, Inc.), 5.00%, 10/1/35 | Baa3 | 500,000 | 524,868 | |
(JFK Intl. Arpt. Term. 4, LLC), 5.00%, 12/1/29 | Baa1 | 500,000 | 540,093 | |
(American Airlines, Inc.), 2.25%, 8/1/26 | BB−/F | 155,000 | 149,060 | |
NY State Urban Dev. Corp. Sales Tax Rev. Bonds, Ser. A, 5.00%, 3/15/44 | Aa1 | 5,000,000 | 5,637,824 | |
Port Auth. of NY & NJ Rev. Bonds | ||||
Ser. 218, 5.00%, 11/1/49 T | Aa3 | 1,535,000 | 1,590,289 | |
5.00%, 1/15/37 | Aa3 | 1,000,000 | 1,113,292 | |
5.00%, 1/15/36 | Aa3 | 1,000,000 | 1,124,840 | |
Ser. 197, 5.00%, 11/15/35 | Aa3 | 5,000,000 | 5,150,142 | |
Ser. 227, 3.00%, 10/1/27 | Aa3 | 5,000,000 | 4,902,423 | |
Util. Debt Securitization Auth. Rev. Bonds, Ser. 1, 5.00%, 12/15/39 | Aaa | 2,000,000 | 2,370,071 | |
159,078,767 | ||||
North Carolina (0.4%) | ||||
NC Agriculture & Tech. State U. Rev. Bonds | ||||
5.00%, 10/1/42 | Aa3 | 950,000 | 1,063,530 | |
5.00%, 10/1/41 | Aa3 | 450,000 | 506,363 | |
5.00%, 10/1/40 | Aa3 | 325,000 | 367,343 | |
5.00%, 10/1/39 | Aa3 | 200,000 | 227,244 |
Strategic Intermediate Municipal Fund 23 |
MUNICIPAL BONDS AND NOTES (100.2%)* cont. | Rating** | Principal amount | Value | |
North Carolina cont. | ||||
NC State Cap. Fac. Fin. Agcy. Edl. Fac. Rev. Bonds, (Campbell U.), Ser. A, 5.00%, 10/1/26 | Baa2 | $1,250,000 | $1,292,283 | |
NC State Med. Care Comm. Hlth. Care Fac. Rev. Bonds, (Lutheran Svcs. for the Aging, Inc. Oblig. Group), Ser. C | ||||
5.00%, 3/1/28 | BB/P | 365,000 | 368,200 | |
5.00%, 3/1/27 | BB/P | 460,000 | 463,766 | |
5.00%, 3/1/26 | BB/P | 440,000 | 442,917 | |
4.00%, 3/1/29 | BB/P | 755,000 | 727,699 | |
5,459,345 | ||||
Ohio (2.2%) | ||||
Cleveland-Cuyahoga Cnty., Rev. Bonds, (Euclid Ave. Dev., Corp.), 5.00%, 8/1/39 | A3 | 3,000,000 | 3,010,527 | |
Cleveland-Cuyahoga Cnty., Port Auth. Cultural Fac. Rev. Bonds | ||||
(Playhouse Sq. Foundation), 5.25%, 12/1/38 | BB+ | 500,000 | 507,626 | |
(Playhouse Square Foundation), 5.00%, 12/1/33 | BB+ | 3,460,000 | 3,547,737 | |
Columbus-Franklin Cnty., Fin. Auth. Multi-Fam. Hsg. Mandatory Put Bonds (2/1/27), (Dering Family Homes Owner, LLC), 5.00%, 7/1/45 | Aaa | 3,000,000 | 3,107,479 | |
Cuyahoga Cnty., Econ. Dev. Rev. Bonds, 5.00%, 1/1/38 | A | 1,380,000 | 1,488,758 | |
Franklin Cnty., Hlth. Care Fac. Rev. Bonds, (Friendship Village of Dublin Oblig. Group), 5.00%, 11/15/34 | BBB+/F | 700,000 | 701,928 | |
Hamilton Cnty., Hlth. Care Rev. Bonds, (Life Enriching Cmnty.), 5.00%, 1/1/36 | BBB−/F | 3,055,000 | 3,059,833 | |
Montgomery Cnty., Hosp. VRDN 3.73%, 11/15/45 | VMIG 1 | 500,000 | 500,000 | |
OH State Higher Edl. Fac. Comm. Rev. Bonds | ||||
(Kenyon College), 5.00%, 7/1/35 | A2 | 1,700,000 | 1,984,434 | |
(Cleveland Inst. of Art (The)), 5.00%, 12/1/33 | BB | 1,570,000 | 1,550,709 | |
(Cleveland Inst. of Music (The)), 5.00%, 12/1/32 | BBB− | 600,000 | 618,124 | |
(John Carroll U.), 5.00%, 10/1/30 | Baa1 | 455,000 | 493,952 | |
(John Carroll U.), 5.00%, 10/1/29 | Baa1 | 810,000 | 870,720 | |
(Cleveland Inst. of Art (The)), 5.00%, 12/1/28 | BB | 500,000 | 499,541 | |
(John Carroll U.), 5.00%, 10/1/28 | Baa1 | 370,000 | 392,801 | |
(John Carroll U.), 5.00%, 10/1/27 | Baa1 | 350,000 | 366,860 | |
(John Carroll U.), 5.00%, 10/1/26 | Baa1 | 350,000 | 361,929 | |
(John Carroll U.), 5.00%, 10/1/25 | Baa1 | 220,000 | 224,419 | |
OH State Hosp. Rev. Bonds, (Premier Hlth. Partners Oblig. Group) | ||||
5.00%, 11/15/27 | Baa1 | 240,000 | 251,123 | |
5.00%, 11/15/26 | Baa1 | 285,000 | 294,662 | |
5.00%, 11/15/24 | Baa1 | 135,000 | 136,236 | |
Ohio State Air Qlty. Dev. Auth. Mandatory Put Bonds (6/1/27), (Duke Energy Corp.), Ser. 22B, 4.00%, 9/1/30 | Baa2 | 3,250,000 | 3,273,565 | |
Port of Greater Cincinnati Dev. Auth. 144A Rev. Bonds, 4.25%, 12/1/50 | BB/P | 730,000 | 635,943 | |
Scioto Cnty., Hosp. Rev. Bonds, (Southern OH Med. Ctr.), 5.00%, 2/15/33 | A3 | 500,000 | 510,345 | |
28,389,251 |
24 Strategic Intermediate Municipal Fund |
MUNICIPAL BONDS AND NOTES (100.2%)* cont. | Rating** | Principal amount | Value | |
Oklahoma (0.3%) | ||||
OK State Wtr. Res. Brd. State Loan Program Rev. Bonds, (Muscogee Muni. Auth.), Ser. A, 5.00%, 10/1/43 | AAA | $2,190,000 | $2,436,113 | |
Tulsa, Indl. Auth. Rev. Bonds, (U. of Tulsa (The)), 5.00%, 10/1/25 | Baa3 | 1,000,000 | 1,005,314 | |
3,441,427 | ||||
Oregon (0.3%) | ||||
Keizer, Special Assmt. Bonds, (Keizer Station), Ser. A, 5.20%, 6/1/31 | Aa3 | 185,000 | 187,360 | |
Port of Portland, Arpt. Rev. Bonds | ||||
Ser. 24B, 5.00%, 7/1/33 | AA− | 2,000,000 | 2,076,967 | |
Ser. 28, 5.00%, 7/1/28 | AA− | 1,000,000 | 1,072,322 | |
3,336,649 | ||||
Other (0.9%) | ||||
Federal Home Loan Mortgage Corporation Multifamily ML certificates, Ser. ML-19, Class A, 3.996%, 12/25/36 | AA+ | 6,005,387 | 5,774,067 | |
Federal Home Loan Mortgage Corporation Multifamily ML certificates, Ser. 19-ML-05, Class A-US, 3.40%, 1/25/36 | AA+ | 6,199,269 | 5,848,012 | |
11,622,079 | ||||
Pennsylvania (7.1%) | ||||
Allegheny Cnty., Arpt. Auth. Rev. Bonds, Ser. A | ||||
AGM, 5.50%, 1/1/43 | AA | 1,500,000 | 1,683,567 | |
AGM, 5.50%, 1/1/42 | AA | 1,000,000 | 1,127,555 | |
AGM, 5.50%, 1/1/41 | AA | 1,000,000 | 1,132,070 | |
5.00%, 1/1/35 | AA | 8,155,000 | 8,936,335 | |
5.00%, 1/1/34 | AA | 2,330,000 | 2,558,923 | |
Allegheny Cnty., Higher Ed. Bldg. Auth. Rev. Bonds, (Duquesne U. of the Holy Spirit) | ||||
5.00%, 3/1/43 | A2 | 2,025,000 | 2,266,999 | |
5.00%, 3/1/42 | A2 | 1,635,000 | 1,839,466 | |
Chester Cnty., Indl. Dev. Auth. Student Hsg. Rev. Bonds, (West Chester U. Student Hsg., LLC), Ser. A, 5.00%, 8/1/45 | Ba2 | 750,000 | 705,756 | |
Crawford Cnty., Indl. Dev. Auth. Rev. Bonds, (Allegheny College) | ||||
5.00%, 5/1/31 | A− | 1,465,000 | 1,494,569 | |
5.00%, 5/1/30 | A− | 1,510,000 | 1,542,814 | |
5.00%, 5/1/29 | A− | 1,440,000 | 1,471,884 | |
5.00%, 5/1/28 | A− | 1,370,000 | 1,401,878 | |
Dallas, Area Muni. Auth. U. Rev. Bonds, (Misericordia U.), 5.00%, 5/1/29 | Baa3 | 300,000 | 300,139 | |
Lancaster Cnty., Hosp. Auth. VRDN, (Masonic Homes), Ser. D, 3.25%, 7/1/34 | A-1 | 500,000 | 500,000 | |
Lancaster, Indl. Dev. Auth. Rev. Bonds, (Landis Homes Oblig. Group), 4.00%, 7/1/46 | BBB−/F | 675,000 | 529,340 | |
Monroeville, Fin. Auth. Rev. Bonds, (U. of Pittsburgh Med. Ctr.), Ser. B, 5.00%, 2/15/38 | A2 | 2,200,000 | 2,454,033 |
Strategic Intermediate Municipal Fund 25 |
MUNICIPAL BONDS AND NOTES (100.2%)* cont. | Rating** | Principal amount | Value | |
Pennsylvania cont. | ||||
PA Rev. Bonds, (City of Philadelphia, Wtr. & Wastewater) | ||||
4.00%, 1/1/32 | Baa2 | $540,000 | $542,290 | |
4.00%, 1/1/31 | Baa2 | 165,000 | 165,810 | |
4.00%, 1/1/30 | Baa2 | 115,000 | 115,517 | |
4.00%, 1/1/29 | Baa2 | 725,000 | 725,344 | |
PA State Econ. Dev. Fin. Auth. Rev. Bonds | ||||
(PennDOT Major Bridges), 5.25%, 6/30/36 | Baa2 | 1,650,000 | 1,867,449 | |
(PennDOT Major Bridges), 5.25%, 6/30/35 | Baa2 | 2,030,000 | 2,315,841 | |
(PA Bridges Finco LP), 5.00%, 12/31/34 | BBB | 16,800,000 | 17,193,137 | |
Philadelphia, Arpt. Rev. Bonds, Ser. C, 5.00%, 7/1/24 | A2 | 4,000,000 | 4,019,742 | |
Philadelphia, Auth. for Indl. Dev. Rev. Bonds | ||||
(St. Joseph’s U.), 5.00%, 11/1/47 | A−/P | 3,000,000 | 3,045,785 | |
(MaST Cmnty. Charter School II), 5.00%, 8/1/40 | BBB− | 935,000 | 948,672 | |
(LaSalle U.), 5.00%, 5/1/25 | BB− | 1,815,000 | 1,770,902 | |
Philadelphia, Auth. for Indl. Dev. 144A Rev. Bonds, (U. of the Arts) | ||||
4.50%, 3/15/29 | B+/F | 1,925,000 | 1,859,978 | |
4.50%, 3/15/29 (Prerefunded 3/15/28) | AAA/P | 75,000 | 80,477 | |
Philadelphia, Auth. for Indl. Dev. City Agreement Rev. Bonds, 5.00%, 12/1/27 | A1 | 3,000,000 | 3,106,277 | |
Philadelphia, Energy Auth. Rev. Bonds | ||||
5.00%, 11/1/43 | A1 | 700,000 | 770,554 | |
5.00%, 11/1/41 | A1 | 1,000,000 | 1,111,108 | |
5.00%, 11/1/40 | A1 | 1,695,000 | 1,889,397 | |
5.00%, 11/1/39 | A1 | 1,575,000 | 1,766,965 | |
5.00%, 11/1/38 | A1 | 700,000 | 791,891 | |
5.00%, 11/1/37 | A1 | 700,000 | 800,284 | |
Philadelphia, School Dist. G.O. Bonds, Ser. F | ||||
5.00%, 9/1/29 | A1 | 6,620,000 | 6,885,978 | |
BAM, 5.00%, 9/1/27 | AA | 6,860,000 | 7,200,785 | |
Southeastern PA Trans. Auth. Rev. Bonds, (Asset Impt. Program) | ||||
5.25%, 6/1/40 | Aa3 | 1,250,000 | 1,418,238 | |
5.25%, 6/1/39 | Aa3 | 1,500,000 | 1,720,319 | |
92,058,068 | ||||
Puerto Rico (0.6%) | ||||
Cmnwlth. of PR, G.O. Bonds | ||||
Ser. A1, 5.625%, 7/1/27 | BB/P | 1,683,000 | 1,778,755 | |
Ser. A1, 5.375%, 7/1/25 | BB/P | 3,400,000 | 3,456,025 | |
Ser. A-1, 4.00%, 7/1/33 | BB/P | 2,400,000 | 2,333,796 | |
7,568,576 | ||||
Rhode Island (0.2%) | ||||
RI Hlth. & Edl. Bldg. Corp. Rev. Bonds, (Lifespan Oblig. Group-Hosp. Fin.) | ||||
5.00%, 5/15/33 | BBB+ | 365,000 | 370,689 | |
5.00%, 5/15/26 | BBB+ | 580,000 | 593,052 | |
Tobacco Settlement Fin. Corp. Rev. Bonds, Ser. B, 5.00%, 6/1/50 | BBB−/P | 1,000,000 | 1,004,810 | |
1,968,551 |
26 Strategic Intermediate Municipal Fund |
MUNICIPAL BONDS AND NOTES (100.2%)* cont. | Rating** | Principal amount | Value | |
South Carolina (0.6%) | ||||
Myrtle Beach, Tax Alloc. Bonds, (Myrtle Beach Air Force Base Redev.), 5.00%, 10/1/28 | A2 | $575,000 | $604,007 | |
SC State Pub. Svcs. Auth. Rev. Bonds | ||||
Ser. A, 5.00%, 12/1/37 | A3 | 3,435,000 | 3,515,483 | |
(Oblig.), Ser. B, 5.00%, 12/1/37 | A3 | 500,000 | 514,098 | |
Ser. A, 5.00%, 12/1/36 | A3 | 1,500,000 | 1,539,078 | |
SC State Trans. Infrastructure Bank Rev. Bonds, Ser. A, 3.00%, 10/1/36 | Aa3 | 1,740,000 | 1,626,206 | |
7,798,872 | ||||
Tennessee (2.6%) | ||||
Knox Cnty., Hlth. Ed. & Hsg. Fac. Board Student Hsg. Rev. Bonds, (Provident Group — UTK Properties, LLC), Ser. A-1, BAM | ||||
5.00%, 7/1/44 | AA | 625,000 | 670,803 | |
5.00%, 7/1/43 | AA | 550,000 | 592,614 | |
5.00%, 7/1/42 | AA | 1,100,000 | 1,189,209 | |
5.00%, 7/1/41 | AA | 825,000 | 895,682 | |
5.00%, 7/1/40 | AA | 425,000 | 463,771 | |
5.00%, 7/1/39 | AA | 450,000 | 493,184 | |
5.00%, 7/1/38 | AA | 425,000 | 468,578 | |
5.00%, 7/1/36 | AA | 450,000 | 505,746 | |
Knoxville, Cmnty. Dev. Corp. Multi-Fam. Mandatory Put Bonds (6/1/26), (DGA Grosvenor Square), 4.00%, 12/1/27 | AA+ | 2,000,000 | 2,015,344 | |
Metro. Govt. Nashville & Davidson Cnty., Hlth. & Edl. Fac. Board Rev. Bonds | ||||
(Trevecca Nazarene U.), 5.00%, 10/1/34 | BBB−/F | 450,000 | 465,634 | |
(Vanderbilt U. Med. Ctr.), Ser. A, 5.00%, 7/1/28 | A | 5,000,000 | 5,419,423 | |
Metro. Nashville, Arpt. Auth. Rev. Bonds, Ser. B | ||||
5.50%, 7/1/37 | A1 | 875,000 | 1,005,873 | |
5.50%, 7/1/36 | A1 | 650,000 | 755,464 | |
5.00%, 7/1/33 | A2 | 1,000,000 | 1,095,345 | |
Rutherford Cnty., G.O. Bonds, Ser. B, 3.00%, 4/1/36 | Aaa | 5,645,000 | 5,328,224 | |
Tennergy Corp. Gas Mandatory Put Bonds (9/1/28), Ser. A, 4.00%, 12/1/51 | A1 | 13,175,000 | 13,204,631 | |
34,569,525 | ||||
Texas (9.2%) | ||||
Arlington, Higher Ed. Fin. Corp. Rev. Bonds | ||||
(Trinity Basin Preparatory, Inc.), PSFG, 5.00%, 8/15/32 | AAA | 245,000 | 279,982 | |
(Trinity Basin Preparatory, Inc.), PSFG, 5.00%, 8/15/31 | AAA | 240,000 | 274,711 | |
(Uplift Ed.), Ser. A, PSFG, 4.00%, 12/1/32 | AAA | 375,000 | 382,574 | |
Arlington, Higher Ed. Fin. Corp. 144A Rev. Bonds, (Magellan School (The)), 5.50%, 6/1/32 | Ba2 | 1,245,000 | 1,297,230 | |
Austin, Cmnty. College Dist. G.O. Bonds, (Maintenance Tax), 3.00%, 8/1/35 | Aa1 | 1,350,000 | 1,268,607 | |
Austin-Bergstrom Landhost Enterprises, Inc. Rev. Bonds | ||||
5.00%, 10/1/36 | A | 1,485,000 | 1,516,868 | |
5.00%, 10/1/33 | A | 400,000 | 413,353 |
Strategic Intermediate Municipal Fund 27 |
MUNICIPAL BONDS AND NOTES (100.2%)* cont. | Rating** | Principal amount | Value | |
Texas cont. | ||||
Clear Creek Ind. School Dist. Mandatory Put Bonds (8/15/24), PSFG, 0.28%, 2/15/38 | AAA | $2,920,000 | $2,868,789 | |
Clifton, Higher Ed. Fin. Corp. Ed. Rev. Bonds | ||||
(Intl. Leadership of TX, Inc.), Ser. A, 6.00%, 3/1/29 | Baa3 | 6,000,000 | 6,007,671 | |
(Intl. Leadership of TX, Inc.), Ser. D, 5.25%, 8/15/27 | Baa3 | 3,890,000 | 3,995,691 | |
(YES Prep Pub. Schools, Inc.), PSFG, 5.00%, 4/1/38 | Aaa | 265,000 | 290,884 | |
(YES Prep Pub. Schools, Inc.), PSFG, 5.00%, 4/1/36 | Aaa | 560,000 | 623,800 | |
(IDEA Pub. Schools), Ser. B, PSFG, 5.00%, 8/15/27 | A− | 350,000 | 360,641 | |
(YES Prep Pub. Schools, Inc.), PSFG, 4.00%, 4/1/43 | Aaa | 1,650,000 | 1,621,226 | |
(IDEA Pub. Schools), Ser. T, PSFG, 4.00%, 8/15/36 | AAA | 700,000 | 733,055 | |
(Intl. Leadership of TX, Inc.), PSFG, 3.00%, 8/15/39 | Aaa | 1,560,000 | 1,338,672 | |
Corpus Christi, Util. Syst. Rev. Bonds | ||||
Ser. C, 5.00%, 7/15/40 | Aa3 | 3,050,000 | 3,106,958 | |
5.00%, 7/15/39 | Aa3 | 750,000 | 856,817 | |
5.00%, 7/15/38 | Aa3 | 250,000 | 287,263 | |
5.00%, 7/15/37 | Aa3 | 500,000 | 579,005 | |
Dickinson, Indpt. School Dist. Mandatory Put Bonds (8/1/25), PSFG, 3.50%, 8/1/37 | Aaa | 5,000,000 | 5,024,613 | |
Fort Bend, Grand Parkway Toll Rd. Auth. Rev. Bonds | ||||
3.00%, 3/1/39 | Aa1 | 1,245,000 | 1,097,228 | |
3.00%, 3/1/38 | Aa1 | 1,205,000 | 1,077,546 | |
Fort Bend, Indpt. School Dist. Mandatory Put Bonds (8/1/26), Ser. B, PSFG, 0.72%, 8/1/51 | AAA | 840,000 | 786,196 | |
Harris Cnty., Cultural Ed. Fac. Fin. Corp. Rev. Bonds, (YMCA of the Greater Houston Area), Ser. A, 5.00%, 6/1/38 | Ba1 | 500,000 | 448,789 | |
Harris Cnty., Indl. Dev. Corp. Mandatory Put Bonds (6/1/33), (Energy Transfer LP), 4.05%, 11/1/50 | BBB | 2,500,000 | 2,550,819 | |
Houston, Arpt. Syst. Rev. Bonds, Ser. A, 4.00%, 7/1/35 | A1 | 1,500,000 | 1,521,292 | |
Houston, Hsg. Fin. Corp. Multi-Fam. Hsg. Mandatory Put Bonds (8/1/26), (Summerdale Apt., LP), 5.00%, 8/1/41 | Aaa | 3,000,000 | 3,077,097 | |
Houston, Indpt. School Dist. Mandatory Put Bonds (6/1/25), Ser. A-2, PSFG, 3.50%, 6/1/39 | Aaa | 3,250,000 | 3,262,876 | |
Hutto, Indpt. School Dist. G.O. Bonds, PSFG | ||||
5.00%, 8/1/43 | Aaa | 500,000 | 561,723 | |
5.00%, 8/1/42 | Aaa | 1,000,000 | 1,127,276 | |
Lake Houston Redev. Auth. Rev. Bonds, (City of Houston, Reinvestment Zone No. 10) | ||||
5.00%, 9/1/31 | BBB− | 200,000 | 209,314 | |
5.00%, 9/1/30 | BBB− | 200,000 | 208,354 | |
5.00%, 9/1/29 | BBB− | 175,000 | 181,261 | |
5.00%, 9/1/28 | BBB− | 150,000 | 154,266 | |
5.00%, 9/1/26 | BBB− | 125,000 | 126,819 | |
5.00%, 9/1/25 | BBB− | 100,000 | 100,788 | |
5.00%, 9/1/24 | BBB− | 100,000 | 100,208 | |
4.00%, 9/1/33 | BBB− | 150,000 | 146,742 | |
4.00%, 9/1/32 | BBB− | 150,000 | 147,124 | |
Lewisville, Indpt. School Dist. G.O. Bonds, PSFG, 3.00%, 8/15/39 | AAA | 1,000,000 | 896,008 |
28 Strategic Intermediate Municipal Fund |
MUNICIPAL BONDS AND NOTES (100.2%)* cont. | Rating** | Principal amount | Value | |
Texas cont. | ||||
Lower CO River Auth. Mandatory Put Bonds (5/15/28), Ser. B, 5.00%, 5/15/39 | A | $2,500,000 | $2,659,902 | |
Matagorda Cnty., Poll. Control Rev. Bonds, (Dist. No. 1), Ser. A, AMBAC, 4.40%, 5/1/30 | A− | 3,680,000 | 3,758,090 | |
New Hope, Cultural Ed. Fac. Fin. Corp. Rev. Bonds | ||||
(TX Woman’s U. CHF-Collegiate Hsg. Dining), Ser. B-1, AGM, 5.00%, 7/1/38 | AA | 860,000 | 888,713 | |
(Collegiate Hsg. College Station I, LLC), 5.00%, 4/1/29 | Baa3 | 2,190,000 | 2,191,657 | |
(Collegiate Housing Island Campus, LLC.), Ser. A, 5.00%, 4/1/25 (Escrowed to maturity) | AAA/P | 500,000 | 510,575 | |
Princeton, Indpt. School Dist. G.O. Bonds, PSFG | ||||
5.00%, 2/15/42 | Aaa | 500,000 | 557,985 | |
5.00%, 2/15/40 | Aaa | 1,000,000 | 1,126,970 | |
Prosper, Indpt. School Dist. Mandatory Put Bonds (8/1/26), PSFG, 4.00%, 2/15/50 | Aaa | 2,000,000 | 2,032,699 | |
Red Oak, Indpt. School Dist. G.O. Bonds, PSFG | ||||
5.00%, 2/15/43 | Aaa | 1,980,000 | 2,216,707 | |
5.00%, 2/15/42 | Aaa | 2,685,000 | 3,016,264 | |
Royse City, Indpt. School Dist. G.O. Bonds, PSFG | ||||
5.00%, 2/15/43 | Aaa | 1,000,000 | 1,122,287 | |
5.00%, 2/15/42 | Aaa | 1,450,000 | 1,637,336 | |
5.00%, 2/15/41 | Aaa | 1,000,000 | 1,133,058 | |
SA Energy Acquisition Pub. Fac. Corp. Rev. Bonds, (Gas Supply), 5.50%, 8/1/25 | A2 | 1,000,000 | 1,020,265 | |
Sinton, Indpt. School Dist. Mandatory Put Bonds (8/15/24), PSFG, 5.00%, 8/15/52 | Aaa | 11,540,000 | 11,636,961 | |
Tarrant Cnty., Cultural Ed. Fac. Fin. Corp. Retirement Fac. Rev. Bonds, (Buckner Retirement Svcs., Inc.) | ||||
5.00%, 11/15/37 | A/F | 2,360,000 | 2,392,240 | |
5.00%, 11/15/37 | A/F | 1,980,000 | 2,000,317 | |
Temple, Tax Increment Tax Alloc. Bonds, (Reinvestment Zone No. 1), Ser. A, BAM | ||||
5.00%, 8/1/30 | AA | 250,000 | 279,099 | |
5.00%, 8/1/29 | AA | 200,000 | 220,277 | |
5.00%, 8/1/28 | AA | 150,000 | 163,105 | |
4.00%, 8/1/33 | AA | 200,000 | 212,245 | |
4.00%, 8/1/32 | AA | 225,000 | 239,578 | |
TX State G.O. Bonds | ||||
Ser. B, 5.00%, 8/1/34 | Aaa | 6,040,000 | 7,006,102 | |
Ser. B, 5.00%, 8/1/33 | Aaa | 5,755,000 | 6,614,318 | |
3.00%, 8/1/34 | Aaa | 2,255,000 | 2,157,406 | |
TX State Affordable Hsg. Corp. Multi-Fam. Hsg. | ||||
Mandatory Put Bonds (4/1/26), (Eden Court Apt.), 5.00%, 4/1/43 | Aaa | 2,100,000 | 2,161,081 | |
Mandatory Put Bonds (7/1/26), (FC Juniper Creek Hsg.), 3.75%, 7/1/44 | Aaa | 2,550,000 | 2,551,700 | |
TX State Dept. Housing & Comm. Rev. Bonds, (Oaks on Lamar), FNMA Coll., 3.55%, 9/1/34 | AA+ | 2,799,101 | 2,678,813 |
Strategic Intermediate Municipal Fund 29 |
MUNICIPAL BONDS AND NOTES (100.2%)* cont. | Rating** | Principal amount | Value | |
Texas cont. | ||||
TX State Pub. Fin. Auth. Rev. Bonds, (TX Southern U.), BAM | ||||
5.25%, 5/1/39 | AA | $500,000 | $552,006 | |
5.25%, 5/1/38 | AA | 300,000 | 332,997 | |
5.25%, 5/1/37 | AA | 300,000 | 336,916 | |
TX Wtr. Dev. Board State Wtr. Implementation Rev. Bonds, 4.50%, 10/15/37 | AAA | 2,500,000 | 2,747,192 | |
Uptown Dev. Auth. Tax Alloc. Bonds, (City of Houston Reinvestment Zone No. 16), 3.00%, 9/1/38 | Baa2 | 1,785,000 | 1,458,375 | |
120,523,372 | ||||
Utah (2.1%) | ||||
Infrastructure Agcy. Telecomm. Rev. Bonds | ||||
5.625%, 10/15/38 | BBB−/F | 1,000,000 | 1,096,305 | |
5.25%, 10/15/35 | BBB−/F | 1,300,000 | 1,422,730 | |
5.00%, 10/15/27 | BBB−/F | 1,000,000 | 1,034,693 | |
5.00%, 10/15/27 | BBB−/F | 550,000 | 569,081 | |
4.00%, 10/15/31 | BBB−/F | 460,000 | 457,721 | |
4.00%, 10/15/29 | BBB−/F | 600,000 | 598,000 | |
Salt Lake City, Arpt. Rev. Bonds, Ser. A | ||||
5.25%, 7/1/40 | A+ | 8,160,000 | 9,064,303 | |
5.00%, 7/1/34 | A+ | 2,000,000 | 2,262,575 | |
5.00%, 7/1/32 | A+ | 2,000,000 | 2,243,529 | |
5.00%, 7/1/28 | A+ | 750,000 | 801,693 | |
5.00%, 7/1/27 | A+ | 950,000 | 1,002,036 | |
UT Infrastructure Agcy. Rev. Bonds, Ser. A | ||||
4.00%, 10/15/36 | BBB−/F | 400,000 | 386,308 | |
4.00%, 10/15/28 | BBB−/F | 900,000 | 895,343 | |
3.00%, 10/15/26 | BBB−/F | 500,000 | 485,198 | |
UT Infrastructure Agcy. Telecomm. Rev. Bonds | ||||
Ser. A, 5.00%, 10/15/34 | BBB−/F | 1,380,000 | 1,424,926 | |
Ser. A, 5.00%, 10/15/32 | BBB−/F | 2,165,000 | 2,241,030 | |
5.00%, 10/15/29 | BBB−/F | 1,300,000 | 1,368,668 | |
UT State Charter School Fin. Auth. Rev. Bonds, (UT Charter Academies, Inc.), 5.00%, 10/15/30 | AA | 575,000 | 608,249 | |
27,962,388 | ||||
Vermont (0.2%) | ||||
VT State Edl. & Hlth. Bldg. Fin. Agcy. Rev. Bonds, (Champlain College, Inc.), Ser. A | ||||
5.00%, 10/15/30 | BBB− | 500,000 | 502,649 | |
5.00%, 10/15/29 | BBB− | 900,000 | 905,238 | |
5.00%, 10/15/28 | BBB− | 1,000,000 | 1,005,168 | |
5.00%, 10/15/27 | BBB− | 760,000 | 763,349 | |
3,176,404 | ||||
Virgin Islands (—%) | ||||
Matching Fund Special Purpose Securitization Corp. Rev. Bonds, Ser. A, 5.00%, 10/1/27 | BB/P | 515,000 | 533,245 | |
533,245 |
30 Strategic Intermediate Municipal Fund |
MUNICIPAL BONDS AND NOTES (100.2%)* cont. | Rating** | Principal amount | Value | |
Virginia (0.5%) | ||||
Isle of Wright Cnty., Econ. Dev. Auth. Rev. Bonds, (Riverside Hlthcare. Assn.), AGM | ||||
5.25%, 7/1/43 | AA | $2,000,000 | $2,237,554 | |
5.00%, 7/1/38 | AA | 600,000 | 664,831 | |
5.00%, 7/1/37 | AA | 500,000 | 556,905 | |
James City Cnty., Econ. Dev. Auth. Res. Care Fac. Rev. Bonds, (Williamsburg Landing, Inc.) | ||||
Ser. A, 5.75%, 12/1/28 | BB+/P | 640,000 | 644,792 | |
5.50%, 12/1/28 | BB+/P | 1,100,000 | 1,108,258 | |
VA State Small Bus. Fin. Auth. Rev. Bonds, (National Sr. Campuses, Inc. Oblig. Group) | ||||
5.00%, 1/1/29 | A/F | 590,000 | 620,671 | |
5.00%, 1/1/27 | A/F | 320,000 | 329,526 | |
6,162,537 | ||||
Washington (2.8%) | ||||
Grays Harbor Cnty., Pub. Hosp. Dist. No. 1 Rev. Bonds | ||||
6.75%, 12/1/44 | BB+ | 6,420,000 | 6,858,906 | |
5.75%, 12/1/27 | BB+ | 695,000 | 717,721 | |
5.75%, 12/1/25 | BB+ | 625,000 | 634,583 | |
Port of Seattle Rev. Bonds, Ser. B | ||||
5.00%, 8/1/40 | AA− | 1,750,000 | 1,884,842 | |
5.00%, 5/1/27 | AA− | 1,100,000 | 1,151,197 | |
Seattle, Muni. Lt. & Pwr. Mandatory Put Bonds (11/1/26), Ser. B, 3.99%, 5/1/45 | Aa2 | 750,000 | 730,303 | |
Skagit Cnty., Pub. Hosp. Dist. No. 1 Rev. Bonds | ||||
5.50%, 12/1/42 | Baa3 | 875,000 | 948,171 | |
5.50%, 12/1/41 | Baa3 | 775,000 | 842,117 | |
5.50%, 12/1/40 | Baa3 | 1,000,000 | 1,091,387 | |
5.50%, 12/1/38 | Baa3 | 885,000 | 975,627 | |
WA State G.O. Bonds, Ser. C, 5.00%, 2/1/41 | Aaa | 3,860,000 | 4,294,179 | |
WA State Hsg. Fin. Comm. Rev. Bonds | ||||
(Eastside Retirement Assn.), Ser. A, 5.00%, 7/1/38 | A−/F | 1,580,000 | 1,665,321 | |
(Social Certif.), Ser. A-1, 3.50%, 12/20/35 | BBB+ | 6,657,010 | 6,274,195 | |
Ser. 1, Class A, 3.375%, 4/20/37 | BBB | 5,691,463 | 5,049,326 | |
WA State Hsg. Fin. Comm. Nonprofit 144A Rev. Bonds, (Seattle Academy of Arts & Sciences) | ||||
6.375%, 7/1/63 | BBB | 2,200,000 | 2,415,227 | |
5.125%, 7/1/33 | BBB | 735,000 | 810,793 | |
36,343,895 | ||||
West Virginia (0.4%) | ||||
WV State Hosp. Fin. Auth. Rev. Bonds, (Vandalia Hlth., Inc.), Ser. B | ||||
5.75%, 9/1/43 | Baa1 | 3,000,000 | 3,342,621 | |
5.75%, 9/1/41 | Baa1 | 2,000,000 | 2,248,536 | |
5,591,157 |
Strategic Intermediate Municipal Fund 31 |
MUNICIPAL BONDS AND NOTES (100.2%)* cont. | Rating** | Principal amount | Value | |
Wisconsin (2.2%) | ||||
Pub. Fin. Auth. Rev. Bonds, (Roseman U. of Hlth. Sciences), 5.00%, 4/1/25 | BB | $870,000 | $870,455 | |
Pub. Fin. Auth. 144A Rev. Bonds, (Roseman U. of Hlth. Sciences) | ||||
5.00%, 4/1/30 | BB | 475,000 | 481,509 | |
5.00%, 4/1/30 (Escrowed to maturity) | AAA/P | 25,000 | 27,201 | |
Pub. Fin. Auth. Poll. Control Mandatory Put Bonds (10/1/30), (Duke Energy Progress, LLC), 3.70%, 10/1/46 | Aa3 | 7,000,000 | 7,109,204 | |
Pub. Fin. Auth. Student Hsg. Fac. Rev. Bonds | ||||
(Beyond Boone, LLC-Appalachian State U.), Ser. A, AGM, 5.00%, 7/1/54 | AA | 1,475,000 | 1,510,312 | |
(Beyond Boone, LLC-Appalachian State U.), Ser. A, AGM, 5.00%, 7/1/44 | AA | 1,000,000 | 1,037,796 | |
(NC A&T Real Estate Foundation, LLC), 5.00%, 6/1/28 | BBB− | 655,000 | 674,233 | |
(NC A&T Real Estate Foundation, LLC), 5.00%, 6/1/27 | BBB− | 880,000 | 899,137 | |
Pub. Fin. Auth. Student Hsg. Fac. 144A Rev. Bonds, (CHF-Manoa, LLC), Ser. A | ||||
5.50%, 7/1/43 | BBB− | 1,000,000 | 1,062,319 | |
5.25%, 7/1/38 | BBB− | 1,000,000 | 1,068,097 | |
WI Pub. Fin. Auth. Edl. Fac. 144A Rev. Bonds, (Methodist U. (The)), 4.00%, 3/1/29 | BB | 1,780,000 | 1,667,479 | |
WI State Hlth. & Edl. Fac. Auth. Rev. Bonds | ||||
(Milwaukee Reg. Med. Ctr. Util. & Infrastructure), 5.00%, 4/1/44 | AA | 7,890,000 | 8,183,688 | |
(Froedtert Health, Inc.), Ser. A, 4.00%, 4/1/37 | AA | 3,930,000 | 4,074,054 | |
28,665,484 | ||||
Total municipal bonds and notes (cost $1,285,935,337) | $1,307,885,762 | |||
SHORT-TERM INVESTMENTS (0.1%)* | Principal amount/ shares | Value | |
Putnam Short Term Investment Fund Class P 5.47% L | Shares | 54,607 | $54,607 |
U.S. Treasury Bills 5.395%, 3/21/24 | $1,300,000 | 1,290,679 | |
Total short-term investments (cost $1,345,360) | $1,345,286 | ||
TOTAL INVESTMENTS | ||
Total investments (cost $1,287,280,697) | $1,309,231,048 | |
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 August 1, 2023 through January 31, 2024 (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 Franklin Resources, Inc., and references to “ASC 820” represent Accounting Standards Codification 820 Fair Value Measurements and Disclosures. | |||
* | Percentages indicated are based on net assets of $1,305,094,747. |
32 Strategic Intermediate Municipal Fund |
** | 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. | ||
## | 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. | ||
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 Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Index, Intercontinental Exchange (ICE) London Interbank Offered Rate (LIBOR) USD 1 Month, ICE LIBOR USD 3 Month, US Secured Overnight Financing Rate (SOFR), Chicago Mercantile Exchange (CME) Term SOFR 3 Month or CME Term SOFR 6 Month rates, which were 3.74%, 5.44%, 5.58%, 5.32%, 5.32% and 5.17%, 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): | |||
Transportation | 19.1% | ||
Education | 14.3 | ||
Utilities | 12.8 | ||
Housing | 11.5 | ||
Health care | 10.6 | ||
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 | $— | $1,307,885,762 | $— |
Short-term investments | — | 1,345,286 | — |
Totals by level | $— | $1,309,231,048 | $— |
The accompanying notes are an integral part of these financial statements.
Strategic Intermediate Municipal Fund 33 |
Statement of assets and liabilities 1/31/24 (Unaudited)
ASSETS | |
Investment in securities, at value (Note 1): | |
Unaffiliated issuers (identified cost $1,287,226,090) | $1,309,176,441 |
Affiliated issuers (identified cost $54,607) (Note 5) | 54,607 |
Interest and other receivables | 13,061,230 |
Receivable for shares of the fund sold | 3,155,269 |
Receivable for investments sold | 4,730,046 |
Prepaid assets | 115,944 |
Total assets | 1,330,293,537 |
LIABILITIES | |
Payable for investments purchased | 8,550,869 |
Payable for purchases of delayed delivery securities (Note 1) | 11,361,234 |
Payable for shares of the fund repurchased | 1,554,758 |
Payable for compensation of Manager (Note 2) | 462,024 |
Payable for custodian fees (Note 2) | 8,158 |
Payable for investor servicing fees (Note 2) | 313,791 |
Payable for Trustee compensation and expenses (Note 2) | 85,416 |
Payable for administrative services (Note 2) | 17,299 |
Payable for distribution fees (Note 2) | 59,898 |
Payable for floating rate notes issued (Note 1) | 1,814,906 |
Distributions payable to shareholders | 813,521 |
Other accrued expenses | 156,916 |
Total liabilities | 25,198,790 |
Net assets | $1,305,094,747 |
REPRESENTED BY | |
Paid-in capital (Unlimited shares authorized) (Notes 1 and 4) | $1,290,155,033 |
Total distributable earnings (Note 1) | 14,939,714 |
Total — Representing net assets applicable to capital shares outstanding | $1,305,094,747 |
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE | |
Net asset value and redemption price per class A share | |
($249,103,669 divided by 17,687,164 shares) | $14.08 |
Offering price per class A share (100/97.75 of $14.08)* | $14.40 |
Net asset value and offering price per class B share ($23,877 divided by 1,695 shares)** | $14.09 |
Net asset value and offering price per class C share ($8,924,159 divided by 631,922 shares)** | $14.12 |
Net asset value, offering price and redemption price per class R6 share | |
($21,011,170 divided by 1,491,737 shares) | $14.09 |
Net asset value, offering price and redemption price per class Y share | |
($1,026,031,872 divided by 72,814,511 shares) | $14.09 |
*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.
34 Strategic Intermediate Municipal Fund |
Statement of operations Six months ended 1/31/24 (Unaudited)
INVESTMENT INCOME | |
Interest (including interest income of $787,167 from investments in affiliated issuers) (Note 5) | $22,117,346 |
Total investment income | 22,117,346 |
EXPENSES | |
Compensation of Manager (Note 2) | 2,439,369 |
Investor servicing fees (Note 2) | 958,463 |
Custodian fees (Note 2) | 15,333 |
Trustee compensation and expenses (Note 2) | 23,755 |
Distribution fees (Note 2) | 327,524 |
Administrative services (Note 2) | 24,761 |
Interest and fees expense (Note 2) | 81,900 |
Other | 306,317 |
Total expenses | 4,177,422 |
Expense reduction (Note 2) | (2,531) |
Net expenses | 4,174,891 |
Net investment income | 17,942,455 |
REALIZED AND UNREALIZED GAIN (LOSS) | |
Net realized gain (loss) on: | |
Securities from unaffiliated issuers (Notes 1 and 3) | (3,457,943) |
Net increase from payments by affiliates (Note 2) | 5,038 |
Futures contracts (Note 1) | (1,189,319) |
Swap contracts (Note 1) | (359,375) |
Total net realized loss | (5,001,599) |
Change in net unrealized appreciation on: | |
Securities from unaffiliated issuers | 28,813,173 |
Futures contracts | 167,658 |
Swap contracts | 14,748 |
Total change in net unrealized appreciation | 28,995,579 |
Net gain on investments | 23,993,980 |
Net increase in net assets resulting from operations | $41,936,435 |
The accompanying notes are an integral part of these financial statements.
Strategic Intermediate Municipal Fund 35 |
Statement of changes in net assets
INCREASE IN NET ASSETS | Six months ended 1/31/24* | Year ended 7/31/23 |
Operations | ||
Net investment income | $17,942,455 | $19,451,118 |
Net realized gain (loss) on investments | (5,001,599) | 56,975 |
Change in net unrealized appreciation (depreciation) | ||
of investments | 28,995,579 | (5,616,978) |
Net increase in net assets resulting from operations | 41,936,435 | 13,891,115 |
Distributions to shareholders (Note 1): | ||
From ordinary income | ||
Taxable net investment income | ||
Class A | (250,250) | (55,300) |
Class B | (37) | (23) |
Class C | (9,229) | (2,521) |
Class R6 | (19,331) | (1,823) |
Class Y | (966,470) | (122,376) |
From tax-exempt net investment income | ||
Class A | (3,040,803) | (5,130,202) |
Class B | (353) | (1,477) |
Class C | (80,655) | (159,693) |
Class R6 | (253,606) | (230,690) |
Class Y | (12,929,830) | (13,441,616) |
Increase from capital share transactions (Note 4) | 231,494,618 | 522,386,242 |
Total increase in net assets | 255,880,489 | 517,131,636 |
NET ASSETS | ||
Beginning of period | 1,049,214,258 | 532,082,622 |
End of period | $1,305,094,747 | $1,049,214,258 |
* Unaudited.
The accompanying notes are an integral part of these financial statements.
36 Strategic Intermediate Municipal Fund |
This page left blank intentionally. |
Strategic Intermediate Municipal Fund 37 |
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 | Net asset | Total return | Net assets, | of expenses | income (loss) | Portfolio | |||
beginning | Net investment | gain (loss) | investment | investment | 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 | |||||||||||||
January 31, 2024** | $13.82 | .20 | .26 | .46 | (.20) | — | (.20) | $14.08 | 3.37* | $249,104 | .47*c | 1.49* | 34* |
July 31, 2023 | 14.00 | .34 | (.18) | .16 | (.34) | — | (.34) | 13.82 | 1.22 | 220,266 | .84c | 2.56 | 37 |
July 31, 2022 | 15.37 | .21 | (1.11) | (.90) | (.20) | (.27) | (.47) | 14.00 | (5.99) | 200,256 | .84c | 1.49 | 34 |
July 31, 2021 | 15.33 | .25 | .43 | .68 | (.26) | (.38) | (.64) | 15.37 | 4.57 | 207,780 | .87c,e | 1.63 | 78 |
July 31, 2020 | 15.38 | .36 | .27 | .63 | (.36) | (.32) | (.68) | 15.33 | 4.23 | 218,232 | .87c,d | 2.36 | 42 |
July 31, 2019 | 14.93 | .41 | .61 | 1.02 | (.41) | (.16) | (.57) | 15.38 | 7.03 | 242,379 | .81 | 2.74 | 38 |
Class B | |||||||||||||
January 31, 2024** | $13.83 | .16 | .26 | .42 | (.16) | — | (.16) | $14.09 | 3.06* | $24 | .77*c | 1.17* | 34* |
July 31, 2023 | 14.01 | .26 | (.18) | .08 | (.26) | — | (.26) | 13.83 | .63 | 42 | 1.44c | 1.91 | 37 |
July 31, 2022 | 15.39 | .13 | (1.11) | (.98) | (.13) | (.27) | (.40) | 14.01 | (6.53) | 98 | 1.44c | .83 | 34 |
July 31, 2021 | 15.35 | .16 | .43 | .59 | (.17) | (.38) | (.55) | 15.39 | 3.94 | 284 | 1.47c,e | 1.08 | 78 |
July 31, 2020 | 15.40 | .26 | .28 | .54 | (.27) | (.32) | (.59) | 15.35 | 3.58 | 741 | 1.49c,d | 1.75 | 42 |
July 31, 2019 | 14.95 | .32 | .61 | .93 | (.32) | (.16) | (.48) | 15.40 | 6.36 | 1,025 | 1.43 | 2.13 | 38 |
Class C | |||||||||||||
January 31, 2024** | $13.86 | .15 | .26 | .41 | (.15) | — | (.15) | $14.12 | 2.98* | $8,924 | .84*c | 1.11* | 34* |
July 31, 2023 | 14.04 | .24 | (.18) | .06 | (.24) | — | (.24) | 13.86 | .48 | 8,512 | 1.59c | 1.79 | 37 |
July 31, 2022 | 15.43 | .11 | (1.13) | (1.02) | (.10) | (.27) | (.37) | 14.04 | (6.75) | 9,473 | 1.59c | .73 | 34 |
July 31, 2021 | 15.38 | .13 | .45 | .58 | (.15) | (.38) | (.53) | 15.43 | 3.84 | 11,268 | 1.62c,e | .90 | 78 |
July 31, 2020 | 15.43 | .24 | .27 | .51 | (.24) | (.32) | (.56) | 15.38 | 3.42 | 15,888 | 1.64c,d | 1.59 | 42 |
July 31, 2019 | 14.97 | .30 | .62 | .92 | (.30) | (.16) | (.46) | 15.43 | 6.26 | 19,827 | 1.58 | 1.98 | 38 |
Class R6 | |||||||||||||
January 31, 2024** | $13.82 | .23 | .26 | .49 | (.22) | — | (.22) | $14.09 | 3.62* | $21,011 | .28*c | 1.68* | 34* |
July 31, 2023 | 14.00 | .38 | (.18) | .20 | (.38) | — | (.38) | 13.82 | 1.52 | 13,855 | .57c | 2.88 | 37 |
July 31, 2022 | 15.39 | .26 | (1.12) | (.86) | (.26) | (.27) | (.53) | 14.00 | (5.76) | 4,243 | .58c | 1.90 | 34 |
July 31, 2021 | 15.35 | .29 | .43 | .72 | (.30) | (.38) | (.68) | 15.39 | 4.84 | 803 | .61c,e | 1.86 | 78 |
July 31, 2020 | 15.40 | .39 | .28 | .67 | (.40) | (.32) | (.72) | 15.35 | 4.47 | 410 | .63c,d | 2.60 | 42 |
July 31, 2019 | 14.94 | .45 | .62 | 1.07 | (.45) | (.16) | (.61) | 15.40 | 7.35 | 306 | .57 | 2.97 | 38 |
Class Y | |||||||||||||
January 31, 2024** | $13.83 | .22 | .26 | .48 | (.22) | — | (.22) | $14.09 | 3.50* | $1,026,032 | .34*c | 1.61* | 34* |
July 31, 2023 | 14.01 | .38 | (.18) | .20 | (.38) | — | (.38) | 13.83 | 1.49 | 806,539 | .59c | 2.84 | 37 |
July 31, 2022 | 15.39 | .25 | (1.12) | (.87) | (.24) | (.27) | (.51) | 14.01 | (5.77) | 318,012 | .59c | 1.87 | 34 |
July 31, 2021 | 15.35 | .29 | .43 | .72 | (.30) | (.38) | (.68) | 15.39 | 4.82 | 58,762 | .62c,e | 1.87 | 78 |
July 31, 2020 | 15.40 | .39 | .28 | .67 | (.40) | (.32) | (.72) | 15.35 | 4.47 | 44,668 | .64c,d | 2.59 | 42 |
July 31, 2019 | 14.94 | .44 | .62 | 1.06 | (.44) | (.16) | (.60) | 15.40 | 7.34 | 46,574 | .58 | 2.98 | 38 |
See notes to financial highlights at the end of this section.
The accompanying notes are an integral part of these financial statements.
38 Strategic Intermediate Municipal Fund | Strategic Intermediate Municipal Fund 39 |
Financial highlights cont.
Before August 28, 2020, the fund was managed with a materially different investment strategy and may have achieved materially different performance results under its current strategy from that shown for periods before this date.
* Not annualized.
** Unaudited.
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 and expenses, if any.
c Includes interest and fee expense associated with borrowings which amounted to (for each class):
Percentage of average net assets | |
January 31, 2024 | 0.01% |
July 31, 2023 | 0.02 |
July 31, 2022 | 0.02 |
July 31, 2021 | 0.02 |
July 31, 2020 | 0.02 |
d Includes one-time proxy costs of 0.05%.
e Includes one-time proxy costs of 0.02%.
The accompanying notes are an integral part of these financial statements.
40 Strategic Intermediate Municipal Fund |
Notes to financial statements 1/31/24 (Unaudited)
Unless otherwise noted, the “reporting period” represents the period from August 1, 2023 through January 31, 2024. The following table defines commonly used references within the Notes to financial statements:
References to | Represent |
Franklin Templeton | Franklin Resources, Inc. |
JPMorgan | JPMorgan Chase Bank, N.A. |
OTC | Over-the-counter |
PIL | Putnam Investments Limited, an affiliate of Putnam Management |
Putnam Management | Putnam Investment Management, LLC, the fund’s manager, an indirect wholly-owned |
subsidiary of Franklin Templeton | |
SEC | Securities and Exchange Commission |
State Street | State Street Bank and Trust Company |
Putnam Strategic Intermediate Municipal Fund (the fund) is a diversified series of Putnam Tax-Free Income Trust (the Trust), a Massachusetts business trust registered under the Investment Company Act of 1940, as amended, as an 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 is 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)). The fund normally maintains an average dollar-weighted maturity between three and ten years. The fund may invest broadly in municipal bonds of any duration (a measure of the sensitivity of a bond’s price to interest rate changes), maturity and credit quality although the bonds the fund invests in are mainly investment-grade in quality. The fund may also invest in investments that are below-investment-grade (sometimes referred to as “junk bonds”), which can be more sensitive to changes in markets, credit conditions, and interest rates, and may be considered speculative. Under normal circumstances, the fund invests at least 80% of the fund’s net assets in tax-exempt investments. Investments paying interest subject to the federal AMT for individuals are considered tax-exempt investments for purposes of this policy. This investment policy cannot be changed without the approval of the fund’s shareholders. The fund may invest up to 20% of its net assets in securities the income on which is subject to federal income tax and may invest without limit in investments the income on which is subject to the AMT. 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 the following share classes. The expenses for each class of shares may differ based on the distribution and investor servicing fees of each class, which are identified in Note 2.
Share class | Sales charge | Contingent deferred sales charge | Conversion feature |
1.00% on certain redemptions of shares | |||
Class A | Up to 2.25% | bought with no initial sales charge | None |
Converts to class A shares | |||
Class B* | None | 5.00% phased out over six years | after 8 years |
Converts to class A shares | |||
Class C | None | 1.00% eliminated after one year | after 8 years |
Class R6† | None | None | None |
Class Y† | None | None | None |
* 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.
† 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.
Strategic Intermediate Municipal Fund 41 |
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 Trust’s Amended and Restated Agreement and Declaration of Trust, any claims asserted by a shareholder against or on behalf of the Trust (or its series), 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 fund follows the accounting and reporting guidance in Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services – Investment Companies (ASC 946) and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP), including, but not limited to, ASC 946. 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.
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, which has been designated as valuation designee pursuant to Rule 2a–5 under the Investment Company Act of 1940, 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
42 Strategic Intermediate Municipal Fund |
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, is recorded on the accrual basis. Amortization and accretion of premiums and discounts on debt securities, if any, 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.
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
Strategic Intermediate Municipal Fund 43 |
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 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 did not have a net liability position on open derivative contracts subject to the Master 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 $2,829,475 were held by the TOB trust and served as collateral for $1,814,906 in floating-rate bonds outstanding. For the reporting period ended, the fund incurred interest expense of $68,413 for these investments based on an average interest rate of 3.54%.
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 $320 million syndicated unsecured committed line of credit, provided by State Street ($160 million) and JPMorgan ($160 million), and a $235.5 million unsecured uncommitted line of credit, 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 and a $75,000 fee has been paid by the participating funds to State Street as agent of the syndicated committed line of credit. 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.
44 Strategic Intermediate Municipal Fund |
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.
Under the Regulated Investment Company Modernization Act of 2010, the fund will be permitted to carry forward capital losses incurred for an unlimited period and the carry forwards will retain their character as either short-term or long-term capital losses. At July 31, 2023, the fund had the following capital loss carryovers available, to the extent allowed by the Code, to offset future net capital gain, if any:
Loss carryover | ||
Short-term | Long-term | Total |
$2,081,448 | $1,063,069 | $3,144,517 |
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 $1,286,773,452, resulting in gross unrealized appreciation and depreciation of $30,183,189 and $7,725,593, respectively, or net unrealized appreciation of $22,457,596.
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 accounts to reflect income and gains available for distribution (or available capital loss carryovers) under income tax regulations.
Expenses of the Trust Expenses directly charged or attributable to any fund will be paid from the assets of that fund. Generally, expenses of the Trust will be allocated among and charged to the assets of each fund on a basis that the Trustees deem fair and equitable, which may be based on the relative assets of each fund or the nature of the services performed and relative applicability to each fund.
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 0.216% of the fund’s average net assets.
Putnam Management has contractually agreed, through November 30, 2024, 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
Strategic Intermediate Municipal Fund 45 |
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.
PIL 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 0.20% of the average net assets of the portion of the fund managed by PIL.
On January 1, 2024, a subsidiary of Franklin Templeton acquired Putnam U.S. Holdings I, LLC (“Putnam Holdings”), the parent company of Putnam Management and PIL, in a stock and cash transaction (the “Transaction”). As a result of the Transaction, Putnam Management and PIL became indirect, wholly-owned subsidiaries of Franklin Templeton. The Transaction also resulted in the automatic termination of the investment management contract between the fund and Putnam Management and the sub-management contract for the fund between Putnam Management and PIL that were in place for the fund before the Transaction (together, the “Previous Advisory Contracts”). However, for the period from January 1, 2024 until February 14, 2024, Putnam Management and PIL continued to provide uninterrupted services with respect to the fund pursuant to interim investment management and sub-management contracts (together, the “Interim Advisory Contracts”) that were approved by the Board of Trustees. The terms of the Interim Advisory Contracts were identical to those of the Previous Advisory Contracts, except for the term of the contracts and those provisions required by regulation. On February 14, 2024, new investment management and sub-management contracts were approved by fund shareholders at a shareholder meeting held in connection with the Transaction (the “New Advisory Contracts”). The New Advisory Contracts took effect on February 14, 2024 and replaced the Interim Advisory Contracts. The terms of the New Advisory Contracts are substantially similar to those of the Previous Advisory Contracts, and the fee rates payable under the New Advisory Contracts are the same as the fee rates under the Previous Advisory Contracts.
Putnam Management voluntarily reimbursed the fund $5,038 for a trading error which occurred during the reporting period. The effect of the loss incurred and the reimbursement by Putnam Management of such amount had no material impact on total return.
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 | $195,651 | Class R6 | 4,197 | |
Class B | 30 | Class Y | 751,348 | |
Class C | 7,237 | Total | $958,463 |
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 $2,531 under the expense offset arrangements.
46 Strategic Intermediate Municipal Fund |
Each Independent Trustee of the fund receives an annual Trustee fee, of which $1,056, 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 from July 1, 1995 through December 31, 2023. 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 Franklin Templeton, 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% | $285,295 |
Class B | 1.00% | 0.85% | 144 |
Class C | 1.00% | 1.00% | 42,085 |
Total | $327,524 |
For the reporting period, Putnam Retail Management Limited Partnership, acting as underwriter, received net commissions of $4,709 from the sale of class A shares and received no monies in contingent deferred sales charges from redemptions of class B and class C shares.
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 $644 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) | $602,380,522 | $369,872,776 |
U.S. government securities (Long-term) | — | — |
Total | $602,380,522 | $369,872,776 |
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.
Strategic Intermediate Municipal Fund 47 |
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 1/31/24 | YEAR ENDED 7/31/23 | |||
Class A | Shares | Amount | Shares | Amount |
Shares sold | 3,182,939 | $43,868,112 | 5,356,270 | $73,380,652 |
Shares issued in connection with | ||||
reinvestment of distributions | 213,811 | 2,933,912 | 340,369 | 4,660,944 |
3,396,750 | 46,802,024 | 5,696,639 | 78,041,596 | |
Shares repurchased | (1,646,194) | (22,502,341) | (4,065,555) | (55,625,015) |
Net increase | 1,750,556 | $24,299,683 | 1,631,084 | $22,416,581 |
SIX MONTHS ENDED 1/31/24 | YEAR ENDED 7/31/23 | |||
Class B | Shares | Amount | Shares | Amount |
Shares sold | 1 | $17 | 24 | $324 |
Shares issued in connection with | ||||
reinvestment of distributions | 27 | 368 | 86 | 1,178 |
28 | 385 | 110 | 1,502 | |
Shares repurchased | (1,347) | (18,422) | (4,127) | (56,623) |
Net decrease | (1,319) | $(18,037) | (4,017) | $(55,121) |
SIX MONTHS ENDED 1/31/24 | YEAR ENDED 7/31/23 | |||
Class C | Shares | Amount | Shares | Amount |
Shares sold | 109,869 | $1,510,697 | 167,141 | $2,302,273 |
Shares issued in connection with | ||||
reinvestment of distributions | 5,734 | 78,875 | 10,978 | 150,684 |
115,603 | 1,589,572 | 178,119 | 2,452,957 | |
Shares repurchased | (97,872) | (1,342,904) | (238,706) | (3,282,236) |
Net increase (decrease) | 17,731 | $246,668 | (60,587) | $(829,279) |
SIX MONTHS ENDED 1/31/24 | YEAR ENDED 7/31/23 | |||
Class R6 | Shares | Amount | Shares | Amount |
Shares sold | 716,464 | $9,795,189 | 873,911 | $12,005,450 |
Shares issued in connection with | ||||
reinvestment of distributions | 19,851 | 272,937 | 16,945 | 232,513 |
736,315 | 10,068,126 | 890,856 | 12,237,963 | |
Shares repurchased | (247,042) | (3,373,712) | (191,481) | (2,589,123) |
Net increase | 489,273 | $6,694,414 | 699,375 | $9,648,840 |
48 Strategic Intermediate Municipal Fund |
SIX MONTHS ENDED 1/31/24 | YEAR ENDED 7/31/23 | |||
Class Y | Shares | Amount | Shares | Amount |
Shares sold | 27,298,501 | $374,111,302 | 48,212,332 | $663,046,473 |
Shares issued in connection with | ||||
reinvestment of distributions | 690,769 | 9,498,265 | 757,592 | 10,402,923 |
27,989,270 | 383,609,567 | 48,969,924 | 673,449,396 | |
Shares repurchased | (13,500,972) | (183,337,677) | (13,347,843) | (182,244,175) |
Net increase | 14,488,298 | $200,271,890 | 35,622,081 | $491,205,221 |
At the close of the reporting period, Putnam Investments, LLC owned 836 class R6 shares of the fund (0.06% of class R6 shares outstanding), valued at $11,779.
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 7/31/23 | cost | proceeds | income | of 1/31/24 |
Short-term investments | |||||
Putnam Short Term | |||||
Investment Fund | |||||
Class P‡ | $134,294,615 | $323,488,880 | $457,728,888 | $787,167 | $54,607 |
Total Short-term | |||||
investments | $134,294,615 | $323,488,880 | $457,728,888 | $787,167 | $54,607 |
‡ 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.
Strategic Intermediate Municipal Fund 49 |
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) | $6,300,000 |
As of the close of the reporting period, the fund did not hold any derivative instruments.
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 | $(1,189,319) | $(359,375) | $(1,548,694) |
Total | $(1,189,319) | $(359,375) | $(1,548,694) |
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 | $167,658 | $14,748 | $182,406 |
Total | $167,658 | $14,748 | $182,406 |
50 Strategic Intermediate Municipal Fund |
Shareholder meeting results (Unaudited)
February 14, 2024 special meeting
At the meeting, a new Management Contract for your fund with Putnam Investment Management, LLC was approved, as follows:
Votes for | Votes against | Abstentions/Votes withheld |
30,443,421 | 580,481 | 6,677,345 |
At the meeting, a new Sub-Management Contract for your fund between Putnam Investment Management, LLC and Putnam Investments Limited was approved, as follows:
Votes for | Votes against | Abstentions/Votes withheld |
30,328,599 | 654,967 | 6,717,680 |
All tabulations are rounded to the nearest whole number.
Strategic Intermediate Municipal Fund 51 |
Fund information
Investment Manager | Trustees | Jonathan S. Horwitz |
Putnam Investment | Kenneth R. Leibler, Chair | Executive Vice President, |
Management, LLC | Barbara M. Baumann, Vice Chair | Principal Executive Officer, |
100 Federal Street | Liaquat Ahamed | and Compliance Liaison |
Boston, MA 02110 | Katinka Domotorffy | |
Catharine Bond Hill | Kelley Hunt | |
Investment Sub-Advisor | Jennifer Williams Murphy | AML Compliance Officer |
Putnam Investments Limited | Marie Pillai | |
16 St James’s Street | George Putnam III | Martin Lemaire |
London, England SW1A 1ER | Robert L. Reynolds | Vice President and |
Manoj P. Singh | Derivatives Risk Manager | |
Marketing Services | Mona K. Sutphen | |
Putnam Retail Management | Jane E. Trust | Alan G. McCormack |
Limited Partnership | Vice President and | |
100 Federal Street | Officers | Derivatives Risk Manager |
Boston, MA 02110 | Robert L. Reynolds | |
President, The Putnam Funds | Denere P. Poulack | |
Custodian | Assistant Vice President, | |
State Street Bank | Kevin R. Blatchford | Assistant Clerk, and |
and Trust Company | Vice President and | Assistant Treasurer |
Assistant Treasurer | ||
Legal Counsel | Janet C. Smith | |
Ropes & Gray LLP | James F. Clark | Vice President, |
Vice President and | Principal Financial Officer, | |
Chief Compliance Officer | Principal Accounting Officer, | |
and Assistant Treasurer | ||
Michael J. Higgins | ||
Vice President, Treasurer, | Stephen J. Tate | |
and Clerk | Vice President and | |
Chief Legal Officer |
This report is for the information of shareholders of Putnam Strategic Intermediate Municipal Fund. It may also be used as sales literature when preceded or accompanied by the current prospectus, the most recent copy of the fund’s Quarterly Performance Summary, and the fund’s Quarterly Ranking Summary. For more recent performance, please visit putnam.com or franklintempleton.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.
This page left blank intentionally. |
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. Recovery of Erroneously Awarded Compensation. |
Not Applicable |
Item 14. Exhibits: |
(a)(1) Not applicable |
(a)(2) Not applicable |
(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 Free Income Trust |
By (Signature and Title): |
/s/ Janet C. Smith Janet C. Smith Principal Accounting Officer |
Date: March 26, 2024 |
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: March 26, 2024 |
By (Signature and Title): |
/s/ Janet C. Smith Janet C. Smith Principal Financial Officer |
Date: March 26, 2024 |