Franklin Templeton to Convert 10 Putnam Municipal Bond Mutual Funds to ETFs

These conversions will offer the same municipal bond strategies with the structural features of an ETF

Franklin Templeton today announced plans to convert 10 Putnam municipal bond mutual funds into exchange-traded funds (ETFs), marking a significant expansion of its municipal bond ETF lineup following the acquisition of Putnam Investments in January 2024. The conversions are expected to be completed between the fourth quarter of 2025 and the first quarter of 2026.

The funds selected, which will become part of the Franklin Templeton ETF platform, include:

• Putnam California Tax Exempt Income Fund
• Putnam Massachusetts Tax Exempt Income Fund
• Putnam Minnesota Tax Exempt Income Fund
• Putnam New Jersey Tax Exempt Income Fund
• Putnam New York Tax Exempt Income Fund
• Putnam Ohio Tax Exempt Income Fund
• Putnam Pennsylvania Tax Exempt Income Fund
• Putnam Short-Term Municipal Income Fund
• Putnam Tax Exempt Income Fund
• Putnam Tax-Free High Yield Fund

"To meet investor demand for high-quality municipal bond strategies delivered in a more cost-efficient, flexible, and transparent structure, we plan to convert these funds to ETFs to better serve our clients," said Patrick O'Connor, Head of Global ETFs at Franklin Templeton. "Our ETF lineup is built to offer choice at the highest level, spanning solutions for all types of investors. These latest additions reflect that commitment and mark another milestone as active fixed income strategies continue to modernize within the ETF ecosystem."

Municipal bonds remain a core component of many investor portfolios, offering federally tax-exempt income and historically low default rates. In addition to their income-generating potential, they can serve as a valuable diversifier within fixed income allocations.

"With these conversions, we remain at the forefront of bringing municipal bond strategies to market at scale in an ETF wrapper," said Ben Barber, Director of Fixed Income - Municipal Bonds at Franklin Templeton. "This is a meaningful step in making tax-free income solutions more accessible for all investors and reinforces our commitment to innovation and leadership in the municipal bond space."

Franklin Templeton's U.S. ETF platform currently includes over 70 ETFs with approximately $32 billion in assets under management as of May 15, 2025. The proposed changes to the product suite will further strengthen the firm's position as an industry leader in delivering choice to ETF investors across active, smart beta, and passive strategies.

About Franklin Templeton

Franklin Resources, Inc. (NYSE:BEN) is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. Franklin Templeton's mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the Company offers specialization on a global scale, bringing extensive capabilities in equity, fixed income, alternatives and multi-asset solutions. With more than 1,500 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and $1.53 trillion in AUM as of April 30, 2025. The Company posts information that may be significant for investors in the Investor Relations and News Center sections of its website, and encourages investors to consult those sections regularly. For more information, please visit investors.franklinresources.com.

Important Information

ETFs and ETPs trade like stocks, fluctuate in market value and may trade at prices above or below the ETFs/ETPs net asset value. Brokerage commissions and ETF/ETP expenses will reduce returns.

ETF/ETP shares may be bought or sold throughout the day at their market price, not their Net Asset Value (NAV), on the exchange on which they are listed. Shares of ETFs/ETPs are tradable on secondary markets and may trade either at a premium or a discount to their NAV on the secondary market.

What are the risks?

All investments involve risks, including possible loss of principal. Fixed income securities involve interest rate, credit, inflation and reinvestment risks, and possible loss of principal. As interest rates rise, the value of fixed income securities falls. Portfolios focused on a single state are subject to greater risk of adverse economic and regulatory changes than a geographically diversified portfolio. Low-rated, high-yield bonds are subject to greater price volatility, illiquidity and possibility of default. Active management does not ensure gains or protect against market declines. An investor may be subject to the federal Alternative Minimum Tax, and state and local taxes may apply. These and other risks are discussed in the fund's prospectus.

Before investing, carefully consider a fund's investment objectives, risks, charges and expenses. You can find this and other information in each prospectus, or summary prospectus, if available, at www.franklintempleton.com. Please read it carefully.

Franklin Distributors, LLC Member FINRA/SIPC

View source version on businesswire.com: https://www.businesswire.com/news/home/20250519797639/en/

Beverly Khoo, (929) 773-4670, [email protected]