| | | | | | |
| MUNICIPAL BONDS AND NOTES (96.5%)(a) |
| | | Rating(RAT) | | Principal amount | Value |
| Alaska (1.4%) |
| AK State Indl. Dev. & Export Auth. Rev. Bonds, (Tanana Chiefs Conference), Ser. A | | | | | |
| 5.00%, 10/1/31 | | A+/F | | $500,000 | $534,048 |
| 5.00%, 10/1/30 | | A+/F | | 650,000 | 696,788 |
| | | | | |
|
| | | | | | 1,230,836 |
| Guam (3.4%) |
| Territory of GU, Govt. G.O. Bonds, 5.00%, 11/15/31 | | Baa3 | | 430,000 | 442,168 |
| Territory of GU, Govt. Bus. Privilege Tax Rev. Bonds, Ser. F, 4.00%, 1/1/42 | | Baa3 | | 1,000,000 | 976,486 |
| Territory of GU, Govt. Hotel Occupancy Tax Rev. Bonds, Ser. A, 5.00%, 11/1/40 | | Baa3 | | 300,000 | 309,676 |
| Territory of GU, Port Auth. Rev. Bonds, Ser. B | | | | | |
| 5.00%, 7/1/37 | | A | | 200,000 | 206,166 |
| 5.00%, 7/1/36 | | A | | 400,000 | 413,126 |
| 5.00%, 7/1/33 | | A | | 200,000 | 207,290 |
| Territory of GU, Wtr. & Waste Wtr. Syst. Rev. Bonds, Ser. A, 5.00%, 1/1/46 | | A- | | 350,000 | 374,657 |
| | | | | |
|
| | | | | | 2,929,569 |
| Illinois (1.3%) |
| IL State G.O. Bonds, Ser. B, 5.00%, 10/1/32 | | A3 | | 1,050,000 | 1,117,384 |
| | | | | |
|
| | | | | | 1,117,384 |
| Ohio (87.8%) |
| Akron Bath Coply Joint Twp. Hosp. Dist. Rev. Bonds, (Summa Hlth. Syst. Oblig. Group) | | | | | |
| 4.00%, 11/15/38 | | BBB+/F | | 360,000 | 349,087 |
| 4.00%, 11/15/37 | | BBB+/F | | 300,000 | 291,531 |
| American Muni. Pwr., Inc. Rev. Bonds | | | | | |
| (Greenup Hydroelectric Pwr. Plant), Ser. A, 5.00%, 2/15/41 | | A1 | | 1,000,000 | 1,020,948 |
| (Hydroelectric Pwr. Plant), Ser. A, 5.00%, 2/15/41 | | A1 | | 830,000 | 847,977 |
| Ashland, City School Dist. G.O. Bonds, 3.00%, 11/1/42 | | Aa1 | | 1,000,000 | 850,470 |
| Bluffton, Hosp. Fac. Rev. Bonds, (Blanchard Valley Hlth. Syst.), 5.00%, 12/1/31 | | A2 | | 650,000 | 678,279 |
| Bowling Green State U. Rev. Bonds, Ser. A, 5.00%, 6/1/42 | | AA- | | 1,000,000 | 1,015,201 |
| Buckeye, Tobacco Settlement Fin. Auth. Rev. Bonds, Ser. A-2, Class 1, 3.00%, 6/1/48 | | BBB+ | | 3,000,000 | 2,271,299 |
| Carlisle, Local School Dist. G.O. Bonds, (School Impt.) | | | | | |
| 5.00%, 12/1/47 | | AA | | 500,000 | 505,138 |
| 5.00%, 12/1/42 | | AA | | 350,000 | 354,010 |
| 5.00%, 12/1/37 | | AA | | 100,000 | 101,338 |
| Centerville, Hlth. Care Rev. Bonds, (Graceworks Lutheran Svcs.), 5.25%, 11/1/50 | | BB+/P | | 500,000 | 472,151 |
| Cincinnati, Econ. Dev. Rev. Bonds, (Keystone Parke Phase III), Ser. B, 5.00%, 11/1/40 | | AA | | 500,000 | 513,463 |
| Cleveland, G.O. Bonds, Ser. A, 3.00%, 12/1/34 | | AA+ | | 1,250,000 | 1,187,266 |
| Cleveland, Income Tax Rev. Bonds, (Impt. Pk. & Recreational), 5.00%, 10/1/33 | | AA | | 615,000 | 651,440 |
| Cleveland, Pub. Pwr. Syst. Rev. Bonds | | | | | |
| Ser. A, AGM, 4.00%, 11/15/36 | | AA | | 750,000 | 766,802 |
| Ser. B-1, NATL, zero %, 11/15/25 | | A3 | | 3,000,000 | 2,890,987 |
| Cleveland, Wtr. Poll. Control Rev. Bonds | | | | | |
| 5.00%, 11/15/54 | | Aa3 | | 1,350,000 | 1,444,899 |
| (Green Bonds), 5.00%, 11/15/41 | | Aa3 | | 500,000 | 508,045 |
| (Green Bonds), 5.00%, 11/15/36 | | Aa3 | | 435,000 | 443,593 |
| Cleveland-Cuyahoga Cnty., Port Auth. Rev. Bonds, (Euclid Avenue Dev. Corp.), 5.50%, 8/1/47 | | A3 | | 1,000,000 | 1,081,244 |
| Cleveland-Cuyahoga Cnty., Port Auth. Cultural Fac. Rev. Bonds | | | | | |
| (Playhouse Square Foundation), 5.50%, 12/1/53 | | BB+ | | 700,000 | 711,306 |
| (Cleveland Museum of Natural History (The)), 4.00%, 7/1/46 | | A3 | | 1,000,000 | 917,563 |
| Cleveland-Cuyahoga Cnty., Port Auth. Tax Increment Fin. Rev. 144A Tax Alloc. Bonds, (Senior-Flats East Bank), Ser. A, 4.00%, 12/1/55 | | BB | | 485,000 | 410,523 |
| Columbus, Metro. Hsg. Auth. Rev. Bonds, (Waldren Woods), 4.00%, 6/1/34 | | A+ | | 1,300,000 | 1,301,374 |
| Columbus, Metro. Library Special Oblig. Rev. Bonds, 4.00%, 12/1/38 | | Aa1 | | 1,000,000 | 1,012,831 |
| Confluence Cmnty. Auth. Rev. Bonds, (Stadium & Sports), 4.00%, 5/1/36 | | AA+ | | 1,000,000 | 1,014,813 |
| Cuyahoga Cnty., Econ. Dev. Rev. Bonds | | | | | |
| 5.00%, 1/1/41 | | A | | 1,435,000 | 1,519,731 |
| 5.00%, 1/1/37 | | A | | 400,000 | 429,357 |
| 5.00%, 1/1/34 | | A | | 300,000 | 322,474 |
| Dayton-Montgomery Cnty., Port Auth. Rev. Bonds, (Dayton Regl. STEM Schools, Inc.), 5.00%, 12/1/54 | | Baa3 | | 1,000,000 | 1,024,838 |
| Franklin Cnty., Rev. Bonds, (Trinity Hlth. Corp. Oblig. Group), Ser. 17OH, 5.00%, 12/1/46 | | Aa3 | | 2,445,000 | 2,498,878 |
| Franklin Cnty., Convention Fac. Auth. Rev. Bonds, (Greater Columbus Convention Ctr. Hotel Expansion), 5.00%, 12/1/44 | | BBB- | | 1,000,000 | 1,003,754 |
| Franklin Cnty., Hlth. Care Fac. Rev. Bonds | | | | | |
| 5.00%, 11/15/44 | | BBB+/F | | 1,000,000 | 1,000,777 |
| (OH Living), 4.00%, 7/1/40 | | BBB-/F | | 1,000,000 | 893,495 |
| Franklin Cnty., Hosp. Fac. Rev. Bonds, (Nationwide Children's Hosp.), Ser. A, 4.00%, 11/1/38 | | Aa2 | | 300,000 | 301,504 |
| Green, Local School Dist. G.O. Bonds | | | | | |
| Ser. A, 5.50%, 11/1/47 | | AA | | 650,000 | 706,277 |
| Ser. B, AGM, 5.00%, 11/1/52 | | AA | | 1,200,000 | 1,256,511 |
| Ser. B, AGM, 4.625%, 11/1/47 | | AA | | 500,000 | 508,392 |
| Hamilton Cnty., Hlth. Care Rev. Bonds, (Life Enriching Cmnty.), 5.00%, 1/1/46 | | BBB-/F | | 1,000,000 | 993,446 |
| Hamilton Cnty., Sales Tax Rev. Bonds, Ser. B, AMBAC, zero %, 12/1/24 | | Aa3 | | 3,000,000 | 2,975,954 |
| Hilliard, Recreation & Wellness Campus Rev. Bonds, 5.00%, 12/1/52 | | AAA | | 1,000,000 | 1,066,903 |
| Lake Cnty., Cmnty. College Dist. COP, 4.00%, 10/1/35 | | A2 | | 1,840,000 | 1,868,690 |
| Mansfield, G.O. Bonds, BAM, 3.00%, 12/1/45 | | AA | | 1,300,000 | 1,040,196 |
| Miami U. Rev. Bonds, 5.00%, 9/1/41 | | Aa3 | | 500,000 | 512,181 |
| Montgomery Cnty., Hosp. Rev. Bonds, (Kettering Hlth. Network), 4.00%, 8/1/47 | | A+ | | 1,000,000 | 930,759 |
| Montgomery Cnty., Hosp. VRDN 2.90%, 11/15/45 | | VMIG 1 | | 800,000 | 800,000 |
| North Royalton, City School Dist. G.O. Bonds, (School Impt.), 5.00%, 12/1/47 | | Aa2 | | 2,000,000 | 2,020,996 |
| Northeast Ohio Med. U. Rev. Bonds, Ser. A | | | | | |
| 5.00%, 12/1/29 | | Baa1 | | 100,000 | 106,635 |
| 5.00%, 12/1/27 | | Baa1 | | 100,000 | 104,594 |
| 5.00%, 12/1/24 | | Baa1 | | 75,000 | 75,206 |
| 4.00%, 12/1/45 | | Baa1 | | 225,000 | 206,219 |
| 4.00%, 12/1/35 | | Baa1 | | 300,000 | 299,265 |
| 3.00%, 12/1/40 | | Baa1 | | 475,000 | 391,348 |
| OH State Higher Edl. Fac. Comm. Rev. Bonds | | | | | |
| (Capital U.), 6.00%, 9/1/52 | | BBB- | | 400,000 | 409,605 |
| (Oberlin College), 5.25%, 10/1/53 | | Aa3 | | 2,000,000 | 2,200,891 |
| 5.25%, 12/1/48 | | BB | | 250,000 | 237,495 |
| (Ashtabula Cnty. Med. Ctr.), 5.25%, 1/1/47 | | BBB+/F | | 1,000,000 | 1,047,075 |
| (Denison U.), 5.00%, 11/1/48 | | AA | | 1,185,000 | 1,290,737 |
| (Kenyon College), 5.00%, 7/1/37 | | A2 | | 1,000,000 | 1,128,589 |
| (U. of Dayton), Ser. A, 5.00%, 12/1/24 | | A+ | | 285,000 | 286,374 |
| (John Carroll U.), 4.00%, 10/1/47 | | Baa1 | | 1,100,000 | 1,017,342 |
| (Kenyon College 2020), 4.00%, 7/1/44 | | A2 | | 1,400,000 | 1,346,119 |
| (Kenyon College 2020), 4.00%, 7/1/40 | | A2 | | 730,000 | 730,350 |
| (U. of Dayton), 4.00%, 2/1/36 | | A+ | | 900,000 | 916,778 |
| (Otterbein Homes Oblig. Group), 4.00%, 7/1/31 | | A | | 915,000 | 950,660 |
| (U. of Dayton), 3.00%, 2/1/37 | | A+ | | 1,580,000 | 1,406,286 |
| OH State Hosp. Mandatory Put Bonds (8/15/32), (Children's Hosp. Med. Ctr. of Akron), 5.00%, 8/15/54 | | Aa3 | | 1,000,000 | 1,121,346 |
| OH State Hosp. Rev. Bonds | | | | | |
| (U. Hosp. Hlth. Syst.), Ser. A, 5.00%, 1/15/41 | | A2 | | 1,000,000 | 1,012,592 |
| (Premier Hlth. Partners Oblig. Group), 4.00%, 11/15/41 | | Baa1 | | 1,000,000 | 928,993 |
| OH State Private Activity Rev. Bonds, (Portsmouth Bypass Gateway Group, LLC), AGM, 5.00%, 12/31/39 | | AA | | 750,000 | 757,074 |
| OH State U. Rev. Bonds, Ser. A, 3.00%, 12/1/44 | | Aa1 | | 1,000,000 | 834,642 |
| Port of Greater Cincinnati Dev. Auth. Rev. Bonds, (Duke Energy), AGM | | | | | |
| 5.25%, 12/1/63 | | AA | | 750,000 | 815,331 |
| 5.25%, 12/1/58 | | AA | | 300,000 | 326,132 |
| Rickenbacker, Port Auth. Rev. Bonds, (OASBO Expanded Asset Pooled), Ser. A, 5.375%, 1/1/32 | | A2 | | 660,000 | 740,125 |
| Scioto Cnty., Hosp. Rev. Bonds, (Southern OH Med. Ctr.) | | | | | |
| 5.00%, 2/15/34 | | Baa1 | | 1,025,000 | 1,039,279 |
| 5.00%, 2/15/32 | | Baa1 | | 865,000 | 878,780 |
| Summit Cnty., G.O. Bonds, 5.00%, 12/1/43 | | Aa1 | | 1,000,000 | 1,097,241 |
| Toledo, Wtr. Wks. Syst. Rev. Bonds, 5.00%, 11/15/36 | | Aa3 | | 500,000 | 522,126 |
| Upper Arlington, Rev. Bonds | | | | | |
| (Income Tax Rev.), 5.00%, 12/1/53 | | Aaa | | 1,000,000 | 1,064,460 |
| 5.00%, 11/15/49 | | Aa3 | | 725,000 | 784,427 |
| Valley View, Local School Dist. G.O. Bonds, 3.00%, 11/1/45 | | AA | | 1,000,000 | 817,614 |
| | | | | |
|
| | | | | | 74,180,421 |
| Puerto Rico (0.3%) |
| Cmnwlth. of PR, G.O. Bonds, Ser. A-1, 4.00%, 7/1/37 | | BB/P | | 250,000 | 244,583 |
| | | | | |
|
| | | | | | 244,583 |
| Texas (1.3%) |
| Bastrop, Indpt. School Dist. G.O. Bonds, PSFG, 5.00%, 2/15/53 | | Aaa | | 1,000,000 | 1,080,535 |
| | | | | |
|
| | | | | | 1,080,535 |
| Virgin Islands (0.3%) |
| Matching Fund Special Purpose Securitization Corp. Rev. Bonds, Ser. A, 5.00%, 10/1/30 | | BB/P | | 210,000 | 224,887 |
| | | | | |
|
| | | | | | 224,887 |
| Washington (0.7%) |
| Grays Harbor Cnty., Pub. Hosp. Dist. No. 1 Rev. Bonds, 6.75%, 12/1/44 | | BB+ | | 500,000 | 553,696 |
| | | | | |
|
| | | | | | 553,696 |
| | | | | |
|
| Total municipal bonds and notes (cost $82,249,789) | $81,561,911 |
| | | | | | |
| 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 $84,491,304. |
| (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* | $175,044 | $9,275,927 | $6,934,308 | $13,606 | $2,516,663 |
| |
|
|
|
|
|
| Total Short-term investments | $175,044 | $9,275,927 | $6,934,308 | $13,606 | $2,516,663 |
| * 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. |
| 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 2.92%, 5.31%, 5.28%, 5.32%, 5.02, and 4.71%, respectively, as of the close of the reporting period. |
| 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 | 21.3% | | | | |
| Education | 20.7 | | | | |
| Local debt | 14.8 | | | | |
| Utilities | 11.4 | | | | |
| Tax bonds | 11.2 | | | | |
| 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. |
