| | | | | | |
| MUNICIPAL BONDS AND NOTES (96.2%)(a) |
| | | Rating(RAT) | | Principal amount | Value |
| Alaska (1.3%) |
| AK State Indl. Dev. & Export Auth. Rev. Bonds, (Tanana Chiefs Conference), Ser. A, 5.00%, 10/1/30 | | A+/F | | $1,250,000 | $1,339,977 |
| | | | | |
|
| | | | | | 1,339,977 |
| Guam (2.2%) |
| Territory of GU, Govt. G.O. Bonds, 5.00%, 11/15/31 | | Baa3 | | 575,000 | 591,272 |
| Territory of GU, Govt. Bus. Privilege Tax Rev. Bonds, Ser. F, 4.00%, 1/1/42 | | Baa3 | | 1,300,000 | 1,269,431 |
| Territory of GU, Govt. Hotel Occupancy Tax Rev. Bonds, Ser. A, 5.00%, 11/1/40 | | Baa3 | | 425,000 | 438,707 |
| | | | | |
|
| | | | | | 2,299,410 |
| Missouri (1.3%) |
| Kansas City, Indl. Dev. Auth. Arpt. Special Oblig. Rev. Bonds, (Kansas City, Intl. Arpt.), AGM, 5.00%, 3/1/57 | | AA | | 1,300,000 | 1,337,505 |
| | | | | |
|
| | | | | | 1,337,505 |
| Ohio (1.4%) |
| OH State Higher Edl. Fac. Comm. Rev. Bonds, (Otterbein Homes Oblig. Group) | | | | | |
| 4.00%, 7/1/34 | | A | | 405,000 | 416,245 |
| 4.00%, 7/1/33 | | A | | 390,000 | 406,408 |
| 4.00%, 7/1/27 | | A | | 640,000 | 653,991 |
| | | | | |
|
| | | | | | 1,476,644 |
| Pennsylvania (87.6%) |
| Allegheny Cnty., Arpt. Auth. Rev. Bonds | | | | | |
| Ser. B, AGM, 5.25%, 1/1/53 | | AA | | 1,000,000 | 1,093,397 |
| Ser. B, AGM, 5.25%, 1/1/48 | | AA | | 600,000 | 660,003 |
| Ser. A, AGM, 4.00%, 1/1/46 | | AA | | 750,000 | 720,753 |
| Allegheny Cnty., Hosp. Dev. Auth. Rev. Bonds, (Allegheny Hlth. Network), 4.00%, 4/1/44 | | A | | 2,000,000 | 1,888,146 |
| Bethlehem, Redev. Auth. Rev. Bonds, (Moravian U.), 5.50%, 10/1/54 | | BBB+ | | 1,500,000 | 1,584,210 |
| Bucks Cnty., Indl. Dev. Auth. Rev. Bonds, (Delaware Valley U.), 5.00%, 11/1/42 | | BBB-/F | | 250,000 | 245,250 |
| Cheltenham Twp., Indl. Dev. Auth. Rev. Bonds, (Arcadia U.), 5.75%, perpetual maturity | | BBB- | | 350,000 | 357,657 |
| Chester Cnty., Indl. Dev. Auth. Rev. Bonds | | | | | |
| (Collegium Charter School), Ser. A, 5.125%, 10/15/37 | | BB | | 225,000 | 227,356 |
| (Renaissance Academy Charter School), 5.00%, 10/1/34 | | BBB- | | 400,000 | 400,100 |
| Chester Cnty., Indl. Dev. Auth. 144A Rev. Bonds, (Collegium Charter School), 6.00%, 10/15/52 | | BB | | 750,000 | 787,748 |
| Chester Cnty., Indl. Dev. Auth. Student Hsg. Rev. Bonds, (West Chester U. Student Hsg., LLC), Ser. A, 5.00%, 8/1/45 | | Ba2 | | 1,000,000 | 980,885 |
| Cmnwlth. Fin. Auth. Rev. Bonds, (Tobacco Master Settlement Payment Bonds) | | | | | |
| 5.00%, 6/1/34 | | A1 | | 1,000,000 | 1,063,869 |
| 5.00%, 6/1/33 | | A1 | | 1,000,000 | 1,065,542 |
| Cumberland Cnty., Muni. Auth. Rev. Bonds | | | | | |
| (Asbury PA Obligated Group), 5.00%, 1/1/45 | | BB+/P | | 500,000 | 468,431 |
| (Diakon Lutheran Social Ministries), 5.00%, 1/1/32 | | BBB/F | | 700,000 | 707,570 |
| (Penn State Hlth.), 4.00%, 11/1/44 | | A | | 1,500,000 | 1,449,415 |
| Cumberland Valley, School Dist. G.O. Bonds, Ser. A, AGM, 5.00%, 11/15/44 | | AA | | 1,500,000 | 1,629,504 |
| Dallas, Area Muni. Auth. U. Rev. Bonds, (Misericordia U.), 5.00%, 5/1/29 | | Baa3 | | 1,500,000 | 1,500,224 |
| Delaware Cnty., G.O. Bonds, 5.00%, 8/1/48 | | Aa2 | | 1,000,000 | 1,083,785 |
| Erie, City School Dist. G.O. Bonds, Ser. A, AGM, 4.00%, 4/1/33 | | AA | | 1,150,000 | 1,178,402 |
| Erie, Higher Ed. Bldg. Auth. Rev. Bonds, (Gannon U.), 5.00%, 5/1/34 | | BBB+ | | 750,000 | 757,397 |
| Erie, Wtr. Auth. Rev. Bonds, Ser. A, AGM, 5.00%, 12/1/43 | | AA | | 1,000,000 | 1,051,402 |
| Geisinger, Auth. Rev. Bonds, (Geisinger Hlth. Syst.), Ser. A-2, 5.00%, 2/15/39 | | AA- | | 2,155,000 | 2,219,955 |
| Governor Mifflin School Dist. G.O. Bonds, Ser. A, 4.00%, 4/1/39 | | AA- | | 1,000,000 | 1,011,153 |
| Highlands, School Dist. G.O. Bonds, AGM | | | | | |
| 4.00%, 4/15/43 | | AA | | 700,000 | 704,426 |
| 4.00%, 4/15/40 | | AA | | 500,000 | 505,756 |
| Interboro, School Dist. G.O. Bonds, AGM, 5.50%, 8/15/63 | | AA | | 2,250,000 | 2,500,720 |
| Lackawanna Cnty., Indl. Dev. Auth. Rev. Bonds, (Scranton U.), 4.00%, 11/1/40 | | A- | | 1,500,000 | 1,450,019 |
| Lancaster Cnty., Convention Ctr. Auth. Hotel Room Rental Tax Rev. Bonds, Ser. B, 4.00%, 5/1/49 | | Aa2 | | 1,000,000 | 944,894 |
| Lancaster Cnty., Hosp. & Hlth. Ctr. Auth. Rev. Bonds | | | | | |
| (Masonic Villages of the Grand Lodge of PA), 5.125%, 11/1/38 | | A | | 1,000,000 | 1,088,975 |
| (Landis Homes Retirement Cmnty.), Ser. A, 5.00%, 7/1/45 | | BBB-/F | | 1,000,000 | 1,003,391 |
| (St. Anne's Retirement Cmnty.), 5.00%, 3/1/45 | | BB/F | | 500,000 | 442,551 |
| Lancaster Cnty., Hosp. Auth. Rev. Bonds, (Penn State Hlth.), 5.00%, 11/1/51 | | A | | 1,500,000 | 1,551,090 |
| Lancaster Cnty., Hosp. Auth. Hlth. Care Fac. Rev. Bonds, (Moravian Manors, Inc.), Ser. A | | | | | |
| 5.00%, 6/15/49 | | BB+/F | | 1,000,000 | 921,287 |
| 5.00%, 6/15/44 | | BB+/F | | 1,235,000 | 1,176,741 |
| Lancaster, Indl. Dev. Auth. Rev. Bonds | | | | | |
| (Landis Homes), 4.00%, 7/1/56 | | BBB-/F | | 1,030,000 | 888,704 |
| (Landis Homes Oblig. Group), 4.00%, 7/1/51 | | BBB-/F | | 500,000 | 443,433 |
| (Willow Valley Communities), 4.00%, 12/1/49 | | A/F | | 1,550,000 | 1,406,985 |
| Lancaster, Muni. Auth. Hlth. Care Fac. Rev. Bonds, (Garden Spot Village), Ser. A, 5.00%, 5/1/44 | | BBB-/F | | 1,000,000 | 1,058,051 |
| Lehigh Cnty., Gen. Purpose Hosp. Rev. Bonds, (Lehigh Valley Hlth. Network), Ser. A, 5.00%, 7/1/30 | | A+ | | 350,000 | 360,937 |
| Lehigh Cnty., General Purpose Auth. Rev. Bonds, (Muhlenberg College), 5.25%, 2/1/54 | | A3 | | 1,600,000 | 1,701,607 |
| Montgomery Cnty., Indl. Dev. Auth. Rev. Bonds | | | | | |
| (ACTS Retirement-Life Communities, Inc.), 5.00%, 11/15/36 | | A-/F | | 1,500,000 | 1,536,926 |
| (Pub. School of Germantown (The)), 4.00%, 10/1/51 | | BBB+ | | 800,000 | 693,385 |
| (Pub. School of Germantown (The)), 4.00%, 10/1/46 | | BBB+ | | 625,000 | 553,446 |
| (ACTS Retirement-Life Communities, Inc.), 4.00%, 11/15/43 | | A-/F | | 550,000 | 532,049 |
| (Pub. School of Germantown (The)), 4.00%, 10/1/41 | | BBB+ | | 425,000 | 390,246 |
| (Pub. School of Germantown (The)), 4.00%, 10/1/36 | | BBB+ | | 965,000 | 931,688 |
| PA Rev. Bonds, (City of Philadelphia, Wtr. & Wastewater), 4.00%, 1/1/29 | | Baa2 | | 650,000 | 651,805 |
| PA State G.O. Bonds, (Cmnwlth. of PA), 4.00%, 9/1/43 | | Aa3 | | 1,235,000 | 1,251,121 |
| PA State Econ. Dev. Fin. Auth. Rev. Bonds | | | | | |
| (PennDOT Major Bridges), AGM, 5.75%, 12/31/62 | | AA | | 400,000 | 440,198 |
| (U. of Pittsburgh Med. Ctr.), Ser. A, 5.00%, 2/15/38 | | A2 | | 1,750,000 | 1,926,187 |
| (PA Bridges Finco LP), 5.00%, 12/31/34 | | BBB | | 250,000 | 255,884 |
| PA State Econ. Dev. Fin. Auth. Solid Waste Disp. Rev. Bonds, (Procter & Gamble Paper), 5.375%, 3/1/31 | | Aa3 | | 1,155,000 | 1,298,021 |
| PA State Fin., Auth. Rev. Bonds, (Penn Hills), Ser. B, AMBAC, zero %, 12/1/27 | | AA-/P | | 1,000,000 | 900,157 |
| PA State Higher Edl. Fac. Auth. Rev. Bonds, (Drexel U.), 4.00%, 5/1/34 | | Baa1 | | 1,250,000 | 1,233,883 |
| PA State Higher Edl. Fac. Auth. Student Hsg. Rev. Bonds, (East Stroudsburg), Ser. A, 5.00%, 7/1/35 | | Baa3 | | 730,000 | 715,733 |
| PA State Tpk. Comm. Rev. Bonds | | | | | |
| Ser. B-1, 5.00%, 6/1/42 | | A2 | | 675,000 | 696,426 |
| 4.75%, 12/1/37 | | A1 | | 1,000,000 | 1,025,894 |
| PA State Tpk. Comm. Oil Franchise Tax Rev. Bonds, Ser. C, zero %, 12/1/38 | | Aa3 | | 3,000,000 | 1,725,740 |
| PA State U. Rev. Bonds, Ser. A, 5.00%, 9/1/45 | | Aa1 | | 2,200,000 | 2,345,457 |
| PA State, Econ. Dev. Fin. Auth. Rev. Bonds, (U. of Pittsburgh Med. Ctr.), Ser. A, 5.00%, 2/15/39 | | A2 | | 1,500,000 | 1,640,141 |
| Pennsbury, School Dist. G.O. Bonds, 5.00%, 8/1/44 | | Aa3 | | 1,000,000 | 1,087,976 |
| Philadelphia Auth. For Ind. Dev. 144A Rev. Bonds, (String Theory Charter School), 5.00%, 6/15/40 | | BB+ | | 1,000,000 | 1,016,453 |
| Philadelphia, G.O. Bonds | | | | | |
| Ser. A, 5.00%, 8/1/37 | | A1 | | 500,000 | 518,149 |
| Ser. B, 5.00%, 2/1/37 | | A1 | | 1,250,000 | 1,331,952 |
| Philadelphia, Arpt. Rev. Bonds, AGM | | | | | |
| 4.00%, 7/1/41 | | AA | | 400,000 | 387,038 |
| 4.00%, 7/1/40 | | AA | | 300,000 | 290,922 |
| Philadelphia, Auth. for Indl. Dev. Rev. Bonds | | | | | |
| (St. Joseph U.), 5.50%, 11/1/60 | | A- | | 1,000,000 | 1,084,445 |
| (MaST Cmnty. Charter School II), 5.00%, 8/1/50 | | BBB- | | 1,050,000 | 1,068,577 |
| (Independence Charter School-West), 5.00%, 6/15/50 | | BB/P | | 1,375,000 | 1,284,131 |
| (St. Joseph's U.), 5.00%, 11/1/47 | | A-/P | | 1,000,000 | 1,009,152 |
| (MaST Cmnty. Charter School II), 5.00%, 8/1/40 | | BBB- | | 615,000 | 630,317 |
| Philadelphia, Auth. for Indl. Dev. VRDN Ser. B-2, 2.91%, 10/1/30 | | VMIG 1 | | 500,000 | 500,000 |
| Philadelphia, Auth. For Indl. Dev. Multi-Fam. 144A (University Sq. Apt.), 5.25%, 12/1/47 | | BBB-/P | | 300,000 | 292,891 |
| Philadelphia, Gas Wks. Rev. Bonds, 5.00%, 8/1/47 | | A | | 2,500,000 | 2,551,774 |
| Philadelphia, Redev. Auth. Rev. Bonds, Ser. B, 5.00%, 9/1/43 | | A1 | | 1,250,000 | 1,351,789 |
| Philadelphia, School Dist. G.O. Bonds | | | | | |
| Ser. F, 5.00%, 9/1/36 | | A1 | | 1,000,000 | 1,026,105 |
| Ser. A, 5.00%, 9/1/34 | | A1 | | 1,000,000 | 1,015,992 |
| Ser. A, 5.00%, 9/1/33 | | A1 | | 1,575,000 | 1,662,459 |
| Philadelphia, Wtr. & Waste Wtr. Rev. Bonds, Ser. A, 5.00%, 11/1/45 | | A1 | | 1,000,000 | 1,070,101 |
| Pittsburgh & Allegheny Cnty., Sports & Exhibition Auth. Rev. Bonds, (Pkg. Syst.) | | | | | |
| 5.00%, 12/15/37 | | A | | 1,000,000 | 1,042,597 |
| 5.00%, 12/15/35 | | A | | 625,000 | 653,494 |
| Pittsburgh, G.O. Bonds, 5.00%, 9/1/44 | | AA- | | 400,000 | 438,130 |
| Pittsburgh, School Dist. G.O. Bonds, 3.00%, 9/1/38 | | A1 | | 995,000 | 899,260 |
| Southeastern PA Trans. Auth. Rev. Bonds, (Asset Impt. Program), 5.25%, 6/1/52 | | Aa3 | | 1,750,000 | 1,904,511 |
| West Cornwall, Twp. Muni. Auth. Rev. Bonds, (Lebanon Valley Brethren Home Oblig. Group), Ser. A | | | | | |
| 4.00%, 11/15/46 | | BBB/F | | 525,000 | 469,982 |
| 4.00%, 11/15/41 | | BBB/F | | 505,000 | 475,539 |
| 4.00%, 11/15/36 | | BBB/F | | 365,000 | 357,727 |
| West Shore Area Auth. Rev. Bonds, (Lifeways at Messiah Village), Ser. A, 5.00%, 7/1/35 | | BBB-/F | | 500,000 | 501,373 |
| Wilkes-Barre, Area School Dist. G.O. Bonds, BAM, 5.00%, 4/15/59 | | AA | | 2,000,000 | 2,058,551 |
| Wilkes-Barre, Fin. Auth. Rev. Bonds, (Wilkes U.), 4.00%, 3/1/42 | | BBB- | | 1,400,000 | 1,190,995 |
| | | | | |
|
| | | | | | 92,198,490 |
| Puerto Rico (0.8%) |
| Cmnwlth. of PR, G.O. Bonds, Ser. A-1 | | | | | |
| 4.00%, 7/1/41 | | BB/P | | 500,000 | 475,230 |
| 4.00%, 7/1/37 | | BB/P | | 350,000 | 342,416 |
| | | | | |
|
| | | | | | 817,646 |
| South Carolina (0.7%) |
| SC State Jobs-Econ. Dev. Auth. Rev. Bonds, (Bon Secours Mercy Hlth.), 4.00%, 12/1/44 | | A+ | | 730,000 | 714,830 |
| | | | | |
|
| | | | | | 714,830 |
| Virgin Islands (0.3%) |
| Matching Fund Special Purpose Securitization Corp. Rev. Bonds, Ser. A, 5.00%, 10/1/30 | | BB/P | | 320,000 | 342,686 |
| | | | | |
|
| | | | | | 342,686 |
| Washington (0.6%) |
| Grays Harbor Cnty., Pub. Hosp. Dist. No. 1 Rev. Bonds, 6.75%, 12/1/44 | | BB+ | | 600,000 | 664,430 |
| | | | | |
|
| | | | | | 664,430 |
| | | | | |
|
| Total municipal bonds and notes (cost $101,758,725) | $101,191,618 |
| | | | | | |
| 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 June 1, 2024 through August 31, 2024 (the reporting period). Within the following notes to the portfolio, references to "Franklin Advisers" represent Franklin Advisers, Inc., the fund's investment manager, a direct wholly-owned subsidiary of Franklin Resources, Inc., references to "ASC 820" represent Accounting Standards Codification 820 Fair Value Measurements and Disclosures and references to "OTC", if any, represent over-the-counter. |
| (a) | Percentages indicated are based on net assets of $105,157,233. |
| (RAT) | 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. |
| (AFF) | Affiliated company. For investments in Putnam Short Term Investment Fund, the rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period. Transactions during the period with any company which is under common ownership or control were as follows: |
| Name of affiliate | Fair value
as of
5/31/24 | Purchase
cost | Sale
proceeds | Investment
income | Shares outstanding
and fair
value as of
8/31/24 |
| Short-term investments | | | | | |
| Putnam Short Term Investment Fund Class P* | $593,597 | $8,056,246 | $5,762,444 | $32,867 | $2,887,399 |
| |
|
|
|
|
|
| Total Short-term investments | $593,597 | $8,056,246 | $5,762,444 | $32,867 | $2,887,399 |
| * Management fees charged to Putnam Short Term Investment Fund have been waived by Franklin Advisers. There were no realized or unrealized gains or losses during the period. |
| (SEG) | This security, in part or in entirety, was pledged and segregated with the broker to cover margin requirements for futures contracts at the close of the reporting period. Collateral at period end totaled $73,156. |
| 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. |
| 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): |
| Healthcare | 29.7% | | | | |
| Education | 23.0 | | | | |
| Local debt | 18.0 | | | | |
| The fund had the following insurance concentration greater than 10% at the close of the reporting period (as a percentage of net assets): |
| AGM | 11.9% | | | | |
| Security valuation: Portfolio securities and other investments are valued using policies and procedures adopted by the Board of Trustees (Trustees). The Trustees have formed a Pricing Committee to oversee the implementation of these procedures. Under compliance policies and procedures approved by the Trustees, the Trustees have designated the fund’s investment manager as the valuation designee and has responsibility for oversight of valuation. The investment manager is assisted by the fund’s administrator in performing this responsibility, including leading the cross-functional Valuation Committee (VC). The VC is responsible for making fair value determinations, evaluating the effectiveness of the pricing policies of the fund and reporting to the Trustees. |
| 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 the fund’s investment manager. 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 the fund’s investment manager does not believe accurately reflects the security's fair value, the security will be valued at fair value by the fund’s investment manager, 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 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. |
| Futures contracts: The fund used 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. 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”. |
| For the fund's average number of futures contracts, see the appropriate table at the end of these footnotes. |
