a_managedmuniinc.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY



Investment Company Act file number: (811-05740)
Exact name of registrant as specified in charter: Putnam Managed Municipal Income Trust
Address of principal executive offices: One Post Office Square, Boston, Massachusetts 02109
Name and address of agent for service: Robert T. Burns, Vice President
One Post Office Square
Boston, Massachusetts 02109
Copy to:         Bryan Chegwidden, Esq.
Ropes & Gray LLP
1211 Avenue of the Americas
New York, New York 10036
Registrant’s telephone number, including area code: (617) 292-1000
Date of fiscal year end: October 31, 2015
Date of reporting period: January 31, 2015



Item 1. Schedule of Investments:













Putnam Managed Municipal Income Trust

The fund's portfolio
1/31/15 (Unaudited)
Key to holding's abbreviations
ABAG — Association Of Bay Area Governments
AGM — Assured Guaranty Municipal Corporation
AMBAC — AMBAC Indemnity Corporation
COP — Certificates of Participation
FGIC — Financial Guaranty Insurance Company
FHLMC Coll. — Federal Home Loan Mortgage Corporation Collateralized
FNMA Coll. — Federal National Mortgage Association Collateralized
FRB — Floating Rate Bonds: the rate shown is the current interest rate at the close of the reporting period
G.O. Bonds — General Obligation Bonds
GNMA Coll. — Government National Mortgage Association Collateralized
NATL — National Public Finance Guarantee Corp.
Radian Insd. — Radian Group Insured
U.S. Govt. Coll. — U.S. Government Collateralized
VRDN — Variable Rate Demand Notes, which are floating-rate securities with long-term maturities that carry coupons that reset and are payable upon demand either daily, weekly or monthly. The rate shown is the current interest rate at the close of the reporting period.
MUNICIPAL BONDS AND NOTES (128.8%)(a)
Rating(RAT) Principal amount Value
Alabama (1.2%)
Cullman Cnty., Hlth. Care Auth. Rev. Bonds (Cullman Regl. Med. Ctr.), Ser. A, 6 3/4s, 2/1/29 Ba1 $1,100,000 $1,214,851
Jefferson Cnty., Swr. Rev. Bonds
     Ser. D, 6 1/2s, 10/1/53 BBB- 500,000 584,045
     zero %, 10/1/46 BBB- 3,950,000 2,575,360
Selma, Indl. Dev. Board Rev. Bonds (Gulf Opportunity Zone Intl. Paper Co.), Ser. A, 6 1/4s, 11/1/33 BBB 1,000,000 1,171,040
5,545,296
Arizona (4.8%)
Apache Cnty., Indl. Dev. Auth. Poll. Control Rev. Bonds (Tucson Elec. Pwr. Co.), Ser. A, 4 1/2s, 3/1/30 A3 1,750,000 1,894,130
Casa Grande, Indl. Dev. Auth. Rev. Bonds (Casa Grande Regl. Med. Ctr.) escrow
     Ser. A, 7 5/8s, 12/1/29(F) D/P 1,800,000 5,380
     7 1/4s, 12/1/19(F) D/P 1,000,000 2,989
Coconino Cnty., Poll. Control Rev. Bonds (Tucson Elec. Pwr. Co. - Navajo), Ser. A, 5 1/8s, 10/1/32 A3 2,000,000 2,242,540
Maricopa Cnty., Poll. Control Rev. Bonds (El Paso Elec. Co.), Ser. A, 7 1/4s, 2/1/40 Baa1 2,200,000 2,591,885
Navajo Cnty., Poll. Control Corp. Mandatory Put Bonds (6/1/16) (AZ Pub. Svc. Co. Cholla Pwr. Plant), Ser. E, 5 3/4s, 6/1/34 A3 1,950,000 2,073,455
Phoenix, Indl. Dev. Auth. Ed. Rev. Bonds
     (Great Hearts Academies), 6s, 7/1/32 BB/F 200,000 216,648
     (Choice Academies, Inc.), 5 5/8s, 9/1/42 BB+ 315,000 330,715
     (Choice Academies, Inc.), 5 3/8s, 9/1/32 BB+ 675,000 709,000
     (Great Hearts Academies), 5s, 7/1/44 BB+ 1,975,000 2,059,234
     (Choice Academies, Inc.), 4 7/8s, 9/1/22 BB+ 905,000 961,146
Pima Cnty., Indl. Dev. Auth. Rev. Bonds (Horizon Cmnty. Learning Ctr.), 5.05s, 6/1/25 BBB 1,140,000 1,141,528
Salt Verde, Fin. Corp. Gas Rev. Bonds
     5 1/2s, 12/1/29 A- 2,000,000 2,496,440
     5s, 12/1/37 A- 2,000,000 2,419,140
     5s, 12/1/32 A- 570,000 683,487
Tempe, Indl. Dev. Auth. Rev. Bonds (Friendship Village), Ser. A, 6 1/4s, 12/1/42 BB-/P 1,000,000 1,097,470
Yavapai Cnty., Indl. Dev. Ed. Auth. Rev. Bonds (Agribusiness & Equine Ctr.), 5s, 3/1/32 BB+ 1,000,000 1,031,110
21,956,297
Arkansas (0.2%)
Arkadelphia, Pub. Ed. Fac. Board Rev. Bonds (Ouachita Baptist U.), 6s, 3/1/33 BB+/P 840,000 884,150
884,150
California (14.4%)
ABAG Fin. Auth. for Nonprofit Corps. Rev. Bonds
     (Episcopal Sr. Cmntys.), 6s, 7/1/31 BBB+/F 660,000 774,635
     (O'Connor Woods), 5s, 1/1/33 A+ 600,000 696,468
CA Muni. Fin. Auth. COP (Cmnty. Hosp. Central CA), 5 1/4s, 2/1/37 Baa1 1,105,000 1,164,339
CA Muni. Fin. Auth. Rev. Bonds
     (U. of La Verne), Ser. A, 6 1/8s, 6/1/30 Baa1 1,000,000 1,180,190
     (Emerson College), 6s, 1/1/42 Baa1 1,000,000 1,170,250
CA Poll. Control Fin. Auth. Solid Waste Disp. FRB (Waste Management, Inc.), Ser. C, 5 1/8s, 11/1/23 A- 2,150,000 2,226,024
CA Poll. Control Fin. Auth. Solid Waste Disp. 144A Rev. Bonds (Waste Management, Inc.), Ser. A-2, 5.4s, 4/1/25 A- 1,760,000 1,788,618
CA School Fin. Auth. Rev. Bonds (2023 Union, LLC), Ser. A, 6s, 7/1/33 BBB- 465,000 529,407
CA State G.O. Bonds
     6 1/2s, 4/1/33 Aa3 5,000,000 6,154,749
     5s, 4/1/42 Aa3 2,000,000 2,301,740
CA State Edl. Fac. Auth. Rev. Bonds (U. of La Verne), Ser. A, 5s, 6/1/35 Baa1 500,000 504,470
CA State Muni. Fin. Auth. Charter School Rev. Bonds (Partnerships Uplift Cmnty.), Ser. A, 5s, 8/1/32 BB+ 665,000 706,795
CA State Poll. Control Fin. Auth. Rev. Bonds
     (Wtr. Furnishing), 5s, 11/21/45 Baa3 2,000,000 2,195,600
     (Pacific Gas & Electric Corp.), Class D, FGIC, 4 3/4s, 12/1/23 A3 2,500,000 2,685,525
CA State Pub. Wks. Board Rev. Bonds
     (Dept. of Forestry & Fire), Ser. E, 5s, 11/1/32 A1 1,250,000 1,382,888
     (Capital Projects), Ser. A, 5s, 4/1/29 A1 2,000,000 2,340,080
CA Statewide Cmnty. Dev. Auth. COP (The Internext Group), 5 3/8s, 4/1/30 BBB+ 540,000 541,712
CA Statewide Cmnty. Dev. Auth. Rev. Bonds
     (Terraces at San Joaquin Gardens), Ser. A, 6s, 10/1/47 BB/P 1,345,000 1,460,778
     (American Baptist Homes West), 5 3/4s, 10/1/25 BBB+/F 3,000,000 3,436,050
     (U. CA Irvine E. Campus Apts. Phase 1), 5 3/8s, 5/15/38 Baa2 1,000,000 1,130,100
     (899 Charleston, LLC), Ser. A, 5 1/4s, 11/1/44 BB/P 450,000 461,700
     (U. CA Irvine E. Campus Apts. Phase 1), 5 1/8s, 5/15/31 Baa2 2,250,000 2,524,478
Cathedral City, Impt. Board Act of 1915 Special Assmt. Bonds (Cove Impt. Dist.), Ser. 04-02
     5.05s, 9/2/35 BB+/P 1,005,000 1,008,306
     5s, 9/2/30 BB+/P 245,000 245,889
Corona-Norco, School Dist. Pub. Fin. Auth. Special Tax Bonds (Sr. Lien), Ser. A, 5s, 9/1/28 BBB+ 380,000 432,459
Foothill/Eastern Corridor Agcy. Rev. Bonds, Ser. A, 6s, 1/15/53 BBB- 1,500,000 1,797,375
Golden State Tobacco Securitization Corp. Rev. Bonds
     Ser. A-1, 5 3/4s, 6/1/47 B3 1,000,000 886,890
     Ser. A-2, 5.3s, 6/1/37 B3 2,000,000 1,706,580
     Ser. A-1, 5 1/8s, 6/1/47 B3 1,235,000 1,006,672
     (Enhanced Asset), Ser. A, 5s, 6/1/30 A1 500,000 586,430
Irvine Pub. Fac. & Infrastructure Auth. Special Assmt. Bonds, Ser. A, 4 1/4s, 9/2/24 BBB+ 500,000 516,610
La Verne, COP (Brethren Hillcrest Homes), 5s, 5/15/36 BBB-/F 325,000 353,785
Los Angeles, Dept. of Arpt. Rev. Bonds (Los Angeles Intl. Arpt.), 5s, 5/15/30 AA 1,000,000 1,177,720
Los Angeles, Regl. Arpt. Impt. Corp. Lease Rev. Bonds (Laxfuel Corp.), 4 1/2s, 1/1/27 A 400,000 439,008
M-S-R Energy Auth. Rev. Bonds, Ser. A, 6 1/2s, 11/1/39 A- 750,000 1,075,950
Oakland, Unified School Dist. Alameda Cnty., G.O. Bonds
     (Election of 2012), 6 5/8s, 8/1/38 BBB/P 800,000 984,224
     (Election 2006), Ser. A, 5 1/2s, 8/1/32 BBB/P 500,000 585,870
Poway, Unified School Dist. Pub. Fin. Auth. Special Tax Bonds, 5s, 9/15/32 BBB 500,000 555,735
Rancho Cordova, Cmnty. Fac. Dist. Special Tax Bonds (Sunridge Anatolia), Ser. 03-1, 5s, 9/1/37 BB+/P 350,000 368,925
San Francisco City & Cnty. Arpt. Comm. Intl. Arpt. Rev. Bonds, Ser. A, 5s, 5/1/30 A1 600,000 687,222
San Francisco City & Cnty., Redev. Agcy. Cmnty. Successor Special Tax Bonds
     (No.6 Mission Bay Pub. Impts.), Ser. C, zero %, 8/1/43 BB+/P 2,000,000 397,600
     (Mission Bay), Ser. C, zero %, 8/1/38 BB+/P 2,000,000 539,620
San Francisco, City & Cnty. Redev. Fin. Auth. Tax Alloc. Bonds (Mission Bay South), Ser. D, 6 5/8s, 8/1/39 BBB+ 250,000 290,440
San Joaquin Hills, Trans. Corridor Agcy. Toll Road Rev. Bonds, Ser. A, 5s, 1/15/34 BBB- 920,000 1,041,679
Santaluz, Cmnty. Facs. Dist. No. 2 Special Tax Rev. Bonds (Impt. Area No. 1), Ser. A, 5 1/4s, 9/1/26 (Prerefunded 9/1/21) BBB+ 1,625,000 1,885,813
Sunnyvale, Special Tax Rev. Bonds (Cmnty. Fac. Dist. No. 1), 7 3/4s, 8/1/32 B+/P 835,000 836,678
Univ. of CA Rev. Bonds, Ser. AF, 5s, 5/15/36(T) AA 7,000,000 8,248,788
Yucaipa Special Tax Bonds (Cmnty. Fac. Dist. No. 98-1 Chapman Heights), 5 3/8s, 9/1/30 BBB+ 375,000 421,324
65,434,188
Colorado (3.3%)
Central Platte Valley, Metro. Dist. G.O. Bonds, 5s, 12/1/43 BB+ 400,000 421,860
CO Pub. Hwy. Auth. Rev. Bonds (E-470), Ser. C, 5 3/8s, 9/1/26 Baa1 500,000 583,425
CO State Educ. & Cultural Facs. Auth. Rev. Bonds (Skyview Academy), 5 1/8s, 7/1/34 BB+ 755,000 793,799
CO State Hlth. Fac. Auth. Rev. Bonds
     (Christian Living Cmnty.), 6 3/8s, 1/1/41 BB-/P 810,000 876,307
     (Total Longterm Care National), Ser. A, 6 1/4s, 11/15/40 BBB+/F 300,000 335,655
     (Christian Living Cmntys.), Ser. A, 5 3/4s, 1/1/26 BB-/P 1,925,000 1,988,737
     (Evangelical Lutheran Good Samaritan Society), 5 5/8s, 6/1/43 A3 250,000 290,813
     (Valley View Assn.), 5 1/4s, 5/15/42 A- 3,495,000 3,764,778
     (Covenant Retirement Cmnty.), Ser. A, 5s, 12/1/33 BBB+/F 900,000 967,419
     (Evangelical Lutheran Good Samaritan Society), 5s, 12/1/33 A3 1,100,000 1,236,741
E-470 CO Pub. Hwy. Auth. Rev. Bonds, Ser. C1, NATL, 5 1/2s, 9/1/24 AA- 1,000,000 1,029,200
Plaza, Tax Assoc. Bonds (Metro. Dist. No. 1), 5s, 12/1/40 BB/P 1,650,000 1,754,363
Regl. Trans. Dist. Rev. Bonds (Denver Trans. Partners), 6s, 1/15/41 Baa3 750,000 859,845
14,902,942
Delaware (1.5%)
DE State Econ. Dev. Auth. Rev. Bonds
     (Delmarva Pwr.), 5.4s, 2/1/31 Baa1 500,000 569,570
     (Indian River Pwr.), 5 3/8s, 10/1/45 Baa3 2,600,000 2,864,992
DE State Hlth. Facs. Auth. VRDN (Christiana Care), Ser. A, 0.03s, 10/1/38 VMIG1 3,340,000 3,340,000
6,774,562
District of Columbia (2.5%)
DC Rev. Bonds
     (Howard U.), Ser. A, 6 1/2s, 10/1/41 BBB+ 2,500,000 2,922,675
     (Howard U.), Ser. A, 6 1/4s, 10/1/32 BBB+ 1,000,000 1,158,910
     (Kipp Charter School), 6s, 7/1/33 BBB+ 1,000,000 1,183,100
DC Tobacco Settlement Fin. Corp. Rev. Bonds, Ser. A, zero %, 6/15/46 B-/F 7,500,000 1,012,500
Metro. Washington, Arpt. Auth. Dulles Toll Rd. Rev. Bonds
     (Dulles Metrorail), 5s, 10/1/53 Baa1 1,500,000 1,652,295
     (2nd Sr. Lien), Ser. B, zero %, 10/1/40 Baa1 10,000,000 3,240,799
11,170,279
Florida (5.8%)
Capital Trust Agcy Rev. Bonds (Faulk Sr. Svcs., LLC), 6 3/4s, 12/1/44 B-/P 165,000 168,902
Double Branch Cmnty. Dev. Dist. Special Assmt. Bonds (Sr. Lien), Ser. A-1, 4 1/8s, 5/1/31 A- 500,000 511,740
Escambia Cnty., Env. Impt. Rev. Bonds (Intl. Paper Co.), Ser. A, 5s, 8/1/26 Baa2 2,000,000 2,001,840
Fishhawk, CCD IV Special Assmt. Bonds, 7 1/4s, 5/1/43 B/P 400,000 441,172
FL Hsg. Fin. Corp. Rev. Bonds, Ser. G, GNMA Coll., FNMA Coll., FHLMC Coll., 5 3/4s, 1/1/37 Aa1 115,000 119,242
Florida State Higher Edl. Fac. Rev. Bonds (U. of Tampa), Ser. A, 5s, 4/1/32 BBB+ 600,000 654,540
Greater Orlando Aviation Auth. Rev. Bonds (JetBlue Airways Corp.), 5s, 11/15/36 B/P 1,000,000 1,024,450
Heritage Harbour Marketplace Cmnty., Dev. Dist. Special Assmt. Bonds, 5.6s, 5/1/36 B-/P 345,000 331,718
Jacksonville, Econ. Dev. Comm. Hlth. Care Fac. Rev. Bonds (FL Proton Therapy Inst.), Ser. A, 6s, 9/1/17 BB-/P 260,000 279,986
Jacksonville, Econ. Dev. Comm. Indl. Dev. Rev. Bonds (Gerdau Ameristeel US, Inc.), 5.3s, 5/1/37 Baa3 2,450,000 2,450,636
Lakeland, Hosp. Syst. Rev. Bonds (Lakeland Regl. Hlth.), 5s, 11/15/40(FWC) A2 1,500,000 1,723,785
Lakeland, Retirement Cmnty. 144A Rev. Bonds (1st Mtge. - Carpenters), 6 3/8s, 1/1/43 BBB-/F 840,000 903,470
Lakewood Ranch, Stewardship Dist. Special Assmt. Bonds, 4 7/8s, 5/1/35 BB-/P 500,000 500,565
Lee Cnty., Indl. Dev. Auth. Hlth. Care Fac. Rev. Bonds
     (Shell Pt./Alliance Oblig. Group), 5 1/8s, 11/15/36 BBB- 1,075,000 1,109,357
     (Shell Pt./Alliance Cmnty.), 5s, 11/15/22 BBB- 1,500,000 1,596,675
Martin Cnty., Rev. Bonds (Indiantown Cogeneration), 4.2s, 12/15/25 Ba1 500,000 516,470
Miami Beach, Hlth. Fac. Auth. Hosp. Rev. Bonds (Mount Sinai Med. Ctr.), 5s, 11/15/29 Baa1 1,000,000 1,157,350
Miami-Dade Cnty., Indl. Dev. Auth. Rev. Bonds (Pinecrest Academy, Inc.), 5s, 9/15/34 BBB- 1,240,000 1,311,709
Midtown Miami Cmnty. Dev. Dist. Special Assmt. Bonds (Garage), Ser. A, 5s, 5/1/29 BB-/P 570,000 630,295
Palm Beach Cnty., Hlth. Fac. Auth. Rev. Bonds (Acts Retirement-Life Cmnty.), 5 1/2s, 11/15/33 BBB+ 2,000,000 2,236,419
Palm Coast Pk. Cmnty. Dev. Dist. Special Assmt. Bonds, 5.7s, 5/1/37 B-/P 890,000 740,355
South Lake Hosp. Dist. Rev. Bonds (South Lake Hosp.), Ser. A, 6s, 4/1/29 Baa1 1,000,000 1,142,480
Southeast Overtown Park West Cmnty. Redev. Agcy. 144A Tax Allocation Bonds, Ser. A-1, 5s, 3/1/30 BBB+ 480,000 544,334
Tolomato, Cmnty. Dev. Dist. Special Assmt. Bonds, 5.4s, 5/1/37 B-/P 820,000 821,738
Verandah, West Cmnty. Dev. Dist. Special Assmt. Bonds (Cap. Impt.), 5s, 5/1/33 BB-/P 500,000 520,165
Verano Ctr. Cmnty. Dev. Dist. Special Assmt. Bonds (Cmnty. Infrastructure), Ser. A, 5 3/8s, 5/1/37 B-/P 905,000 905,769
Village Cmnty. Dev. Dist. No. 8 Special Assmt. Bonds (Phase II), 6 1/8s, 5/1/39 BB/P 415,000 479,624
Village Cmnty. Dev. Dist. No. 9 Special Assmt. Bonds, 5s, 5/1/22 BB/P 505,000 537,603
Village Community Development District No. 10 Special Assmt. Bonds, 5 3/4s, 5/1/31 BB/P 800,000 937,232
26,299,621
Georgia (3.0%)
Atlanta, Wtr. & Waste Wtr. Rev. Bonds, Ser. A, 6 1/4s, 11/1/39 Aa3 2,500,000 3,076,275
Clayton Cnty., Dev. Auth. Special Fac. Rev. Bonds (Delta Airlines), Ser. A, 8 3/4s, 6/1/29 BB- 3,000,000 3,768,839
Forsyth Cnty., Hosp. Auth. Rev. Bonds (Baptist Hlth. Care Syst.), U.S. Govt. Coll., 6 1/4s, 10/1/18 (Escrowed to maturity) AA+ 945,000 1,030,834
GA State Private College & U. Auth. Rev. Bonds (Mercer U.)
     Ser. C, 5 1/4s, 10/1/30 Baa2 750,000 856,950
     Ser. A, 5 1/4s, 10/1/27 Baa2 1,000,000 1,155,070
     Ser. A, 5s, 10/1/32 Baa2 1,000,000 1,110,930
Gainesville & Hall Cnty., Devauth Retirement Cmnty. Rev. Bonds (Acts Retirement-Life Cmnty.), Ser. A-2, 6 3/8s, 11/15/29 BBB+ 700,000 813,246
Marietta, Dev. Auth. Rev. Bonds (U. Fac. Life U., Inc.), Ser. PJ, 6 1/4s, 6/15/20 Ba3 955,000 1,034,771
Rockdale Cnty., Dev. Auth. Rev. Bonds (Visy Paper), Ser. A, 6 1/8s, 1/1/34 BB/P 600,000 614,676
13,461,591
Guam (—%)
Territory of GU, Pwr. Auth. Rev. Bonds, Ser. A, 5s, 10/1/34 BBB 200,000 223,490
223,490
Hawaii (1.2%)
HI Dept. of Trans. Special Fac. Rev. Bonds (Continental Airlines, Inc.), 7s, 6/1/20 B+ 890,000 892,955
HI State Dept. Budget & Fin. Rev. Bonds
     (Craigside), Ser. A, 9s, 11/15/44 B/P 400,000 505,912
     (Hawaiian Elec. Co. - Subsidary), 6 1/2s, 7/1/39 Baa1 3,000,000 3,526,650
     (Kahala Nui), 5 1/8s, 11/15/32 BBB/F 400,000 442,480
5,367,997
Illinois (5.8%)
Chicago, G.O. Bonds, Ser. A, 5s, 1/1/33 A+ 2,000,000 2,124,580
Chicago, Special Assmt. Bonds (Lake Shore East), 6 3/4s, 12/1/32 BB/P 1,615,000 1,618,440
Chicago, Motor Fuel Tax Rev. Bonds, 5s, 1/1/29 AA+ 500,000 564,720
Chicago, O'Hare Intl. Arpt. Rev. Bonds, Ser. C, 5s, 1/1/26 A2 2,595,000 3,039,574
Chicago, Waste Wtr. Transmission Rev. Bonds (2nd Lien), 5s, 1/1/39 AA- 1,360,000 1,547,272
Chicago, Wtr. Wks Rev. Bonds (2nd Lien), 5s, 11/1/39 AA- 875,000 1,005,095
Cicero, G.O. Bonds, Ser. A, AGM, 5s, 1/1/20 AA 1,250,000 1,432,025
Du Page Cnty., Special Svc. Area No. 31 Special Tax Bonds (Monarch Landing)
     5 5/8s, 3/1/36 B/P 350,000 352,751
     5.4s, 3/1/16 B/P 40,000 40,904
IL Fin. Auth. Rev. Bonds
     (Provena Hlth.), Ser. A, 7 3/4s, 8/15/34 BBB+ 1,500,000 1,886,625
     (Silver Cross Hosp. & Med. Ctr.), 7s, 8/15/44 BBB- 2,000,000 2,358,800
     (IL Rush U. Med. Ctr.), Ser. C, 6 5/8s, 11/1/39 (Prerefunded 5/1/19) Aaa 1,075,000 1,329,023
     (Navistar Intl. Recvy. Zone), 6 1/2s, 10/15/40 B3 1,500,000 1,637,370
     (Three Crowns Pk. Plaza), Ser. A, 5 7/8s, 2/15/26 BB-/P 1,000,000 1,016,600
     (Landing At Plymouth Place), Ser. A, 5.35s, 5/15/15 B+/P 600,000 603,270
     (American Wtr. Cap. Corp.), 5 1/4s, 10/1/39 A- 1,575,000 1,691,755
IL Hlth. Fac. Auth. Rev. Bonds (Cmnty. Rehab. Providers Fac.), Ser. A, 7 7/8s, 7/1/20 CCC/P 81,285 42,268
IL State G.O. Bonds, 5s, 3/1/34 A3 750,000 810,180
IL State Fin. Auth. Rev. Bonds (Rush U. Med. Ctr.), Ser. A, 5s, 11/15/38(FWC) A1 1,250,000 1,470,913
IL State Sports Fac. Auth. Rev. Bonds, AGM, 5 1/4s, 6/15/32 AA 250,000 294,053
Railsplitter, Tobacco Settlement Auth. Rev. Bonds, 6s, 6/1/28 A- 1,050,000 1,258,289
26,124,507
Indiana (2.9%)
IN State Fin. Auth. Rev. Bonds
     (I-69 Dev. Partners, LLC), 5 1/4s, 9/1/40 BBB- 1,000,000 1,119,710
     (I-69 Dev. Partners, LLC), 5 1/4s, 9/1/34 BBB- 1,250,000 1,419,013
     (OH Valley Elec. Corp.), Ser. A, 5s, 6/1/32 Baa3 750,000 816,540
IN State Fin. Auth. Edl. Fac. Rev. Bonds (Butler U.), Ser. B
     5s, 2/1/32 BBB+ 1,000,000 1,122,620
     5s, 2/1/29 BBB+ 500,000 569,750
Indianapolis, Arpt. Auth. Rev. Bonds (Federal Express Corp.), 5.1s, 1/15/17 Baa1 3,500,000 3,772,929
Jasper Cnty., Indl. Poll. Control Rev. Bonds
     AMBAC, 5.7s, 7/1/17 Baa1 1,125,000 1,240,841
     NATL, 5.6s, 11/1/16 AA- 700,000 754,810
     Ser. A, NATL, 5.6s, 11/1/16 AA- 500,000 539,150
St. Joseph Cnty., Econ. Dev. Rev. Bonds (Holy Cross Village Notre Dame), Ser. A, 5 3/4s, 5/15/15 B+/P 455,000 457,184
Valparaiso, Exempt Facs. Rev. Bonds (Pratt Paper, LLC), 6 3/4s, 1/1/34 B+/P 1,125,000 1,398,814
13,211,361
Iowa (2.1%)
IA Fin. Auth. Hlth. Care Fac. Rev. Bonds (Care Initiatives), Ser. A
     5 1/4s, 7/1/17 BB+ 1,040,000 1,093,238
     5s, 7/1/19 BB+ 2,750,000 2,867,094
IA Fin. Auth. Hlth. Fac. Rev. Bonds (Dev. Care Initiatives), Ser. A, 5 1/2s, 7/1/25 BB+ 950,000 982,243
IA State Fin. Auth. Midwestern Disaster Rev. Bonds
     (IA Fertilizer Co., LLC), 5 1/2s, 12/1/22 BB- 1,000,000 1,065,070
     (IA Fertilizer Co.), 5 1/4s, 12/1/25 BB- 1,000,000 1,107,010
Orange Cnty., Hosp. Rev. Bonds, 5 1/2s, 9/1/27 BB/P 1,150,000 1,187,789
Tobacco Settlement Auth. of IA Rev. Bonds, Ser. C, 5 3/8s, 6/1/38 B+ 1,250,000 1,126,425
9,428,869
Kansas (0.1%)
Lenexa, Hlth. Care Fac. Rev. Bonds (LakeView Village), 7 1/8s, 5/15/29 BB/P 500,000 570,370
570,370
Kentucky (1.8%)
KY Econ. Dev. Fin. Auth. Rev. Bonds (Masonic Home Indpt. Living II)
     7 1/4s, 5/15/41 BB-/P 500,000 580,685
     7s, 5/15/30 BB-/P 500,000 581,335
KY Pub. Trans. Infrastructure Auth. Rev. Bonds (1st Tier Downtown Crossing), Ser. A, 6s, 7/1/53 Baa3 1,100,000 1,315,600
KY State Econ. Dev. Fin. Auth. Hlth. Care Rev. Bonds (Masonic Homes of KY), 5 3/8s, 11/15/42 BB-/P 900,000 929,070
Louisville & Jefferson Cnty., Metro. Govt. Hlth. Syst. Rev. Bonds (Norton Healthcare Oblig. Group), 5 1/2s, 10/1/33 A- 3,000,000 3,608,609
Louisville/Jefferson Cnty., Metro. Govt. College Rev. Bonds (Bellarmine U.), Ser. A, 6s, 5/1/28 Baa3 500,000 556,455
Owen Cnty., Wtr. Wks. Syst. Rev. Bonds (American Wtr. Co.), Ser. A, 6 1/4s, 6/1/39 A- 700,000 804,776
8,376,530
Louisiana (1.2%)
LA State Local Govt. Env. Facs. & Cmnty. Dev. Auth. Rev. Bonds (Westlake Chemical Corp.), 6 3/4s, 11/1/32 BBB+ 2,200,000 2,500,740
LA State Pub. Facs. Solid Waste Disp. Auth. Rev. Bonds (LA Pellets, Inc.), Ser. A, 8 3/8s, 7/1/39 B-/P 500,000 520,545
Pub. Facs. Auth. Dock & Wharf Rev. Bonds (Impala Warehousing, LLC), 6 1/2s, 7/1/36 B+/P 1,000,000 1,134,180
Rapides, Fin. Auth. FRB (Cleco Pwr.), AMBAC, 4.7s, 11/1/36 A3 750,000 761,228
St. Tammany, Public Trust Fin. Auth. Rev. Bonds (Christwood), 5 1/4s, 11/15/37 BB/P 385,000 395,946
5,312,639
Maine (0.5%)
ME Hlth. & Higher Edl. Fac. Auth. Rev. Bonds
     (ME Gen. Med. Ctr.), 7 1/2s, 7/1/32 Ba1 1,000,000 1,225,870
     (MaineGeneral Health Oblig. Group), 6.95s, 7/1/41 Ba1 1,000,000 1,145,800
2,371,670
Maryland (1.1%)
Baltimore Cnty., Rev. Bonds (Oak Crest Village, Inc. Fac.), Ser. A, 5s, 1/1/37 A- 2,000,000 2,085,820
MD Econ. Dev. Corp. Poll. Control Rev. Bonds (Potomac Electric Power Co.), 6.2s, 9/1/22 A2 550,000 656,134
MD State Indl. Dev. Fin. Auth. Econ. Dev. Rev. Bonds (Our Lady of Good Counsel School), Ser. A, 6s, 5/1/35 (Prerefunded 5/1/15) BB/P 400,000 405,592
Westminster, Rev. Bonds
     (Lutheran Village at Miller's Grant, Inc. (The)), Ser. A, 6s, 7/1/34 B-/P 250,000 271,108
     (Carroll Lutheran Village, Inc.), 5 1/8s, 7/1/34 BB/P 1,500,000 1,596,060
5,014,714
Massachusetts (6.3%)
MA Edl. Fin. Auth. Rev. Bonds, Ser. B, 5 1/2s, 1/1/23 AA 595,000 641,648
MA State Dev. Fin. Agcy. Rev. Bonds
     (Sabis Intl.), Ser. A, 8s, 4/15/39 BBB 690,000 821,417
     (Linden Ponds, Inc. Fac.), Ser. A-1, 6 1/4s, 11/15/46 B-/P 450,850 440,774
     (Linden Ponds, Inc. Fac.), Ser. A-1, 6 1/4s, 11/15/26 B-/P 275,400 279,291
     (Boston U.), 6s, 5/15/59 A1 500,000 654,745
     (Loomis Cmntys.), Ser. A, 6s, 1/1/33 BBB- 200,000 227,172
     (Linden Ponds, Inc. Fac.), Ser. A-2, 5 1/2s, 11/15/46 B-/P 88,265 77,358
     (New England Conservatory of Music), 5 1/4s, 7/1/38 (Prerefunded 7/1/18) AAA/P 805,000 925,790
     (Wheelock College), Ser. C, 5 1/4s, 10/1/29 BBB 1,700,000 1,863,149
     (Emerson College), Ser. A, 5s, 1/1/40 Baa1 1,000,000 1,071,270
     (First Mtge. - Orchard Cove), 5s, 10/1/19 BB/P 550,000 572,325
     (Linden Ponds, Inc. Fac.), Ser. B, zero %, 11/15/56 B-/P 439,022 2,770
MA State Dev. Fin. Agcy. Hlth. Care Fac. 144A Rev. Bonds (Adventcare), Ser. A, 6.65s, 10/15/28 B/P 1,050,000 1,098,227
MA State Dev. Fin. Agcy. Solid Waste Disp. FRB (Dominion Energy Brayton), Ser. 1, 5 3/4s, 12/1/42 (Prerefunded 5/1/19) BBB+ 1,050,000 1,262,426
MA State Hlth. & Edl. Fac. Auth. Rev. Bonds
     (Jordan Hosp.), Ser. E, 6 3/4s, 10/1/33 B+ 2,550,000 2,556,400
     (Suffolk U.), Ser. A, 6 1/4s, 7/1/30 Baa2 1,000,000 1,180,770
     (Quincy Med. Ctr.), Ser. A, 6 1/4s, 1/15/28 (In default)(NON) D/P 330,776 33
     (Suffolk U.), Ser. A, 5 3/4s, 7/1/39 (Prerefunded 7/1/19) Baa2 950,000 1,090,933
     (Baystate Med. Ctr.), Ser. I, 5 3/4s, 7/1/36 A+ 1,500,000 1,769,535
     (Springfield College), 5 5/8s, 10/15/40 Baa1 450,000 496,805
     (Springfield College), 5 1/2s, 10/15/31 Baa1 1,100,000 1,222,650
     (Springfield College), 5 1/2s, 10/15/26 Baa1 1,500,000 1,695,360
     (Fisher College), Ser. A, 5 1/8s, 4/1/37 BBB- 250,000 254,503
     (Emerson Hosp.), Ser. E, Radian Insd., 5s, 8/15/25 BB/P 1,500,000 1,522,425
     (Milford Regl. Med.), Ser. E, 5s, 7/15/22 Baa3 2,200,000 2,350,304
MA State Port Auth. Special Fac. Rev. Bonds (Conrac), Ser. A, 5 1/8s, 7/1/41 A 750,000 836,250
Metro. Boston, Trans. Pkg. Corp. Rev. Bonds
     (Systemwide Pkg.), 5 1/4s, 7/1/33 A1 1,500,000 1,770,060
     5s, 7/1/41 A1 1,500,000 1,727,460
28,411,850
Michigan (5.5%)
Detroit, Wtr. Supply Syst. Rev. Bonds, Ser. B, AGM, 6 1/4s, 7/1/36 AA 1,660,000 1,830,532
Flint, Hosp. Bldg. Auth. Rev. Bonds
     (Hurley Med. Ctr.), 6s, 7/1/20 Ba1 110,000 110,141
     Ser. A, 5 1/4s, 7/1/39 Ba1 750,000 727,875
Kentwood, Economic Dev. Rev. Bonds (Holland Home), 5 5/8s, 11/15/32 BB+/F 2,195,000 2,369,305
MI State Fin. Auth. Rev. Bonds (Detroit Wtr. & Swr.), Ser. C-6, 5s, 7/1/33 BBB+ 600,000 659,976
MI State Fin. Auth. Rev. Notes (Detroit School Dist. Student Aid ), Ser. E, 2.85s, 8/20/15 SP-1 1,000,000 1,005,760
MI State Hosp. Fin. Auth. Rev. Bonds
     Ser. A, 6 1/8s, 6/1/39 (Prerefunded 6/1/19) AA+ 2,000,000 2,441,320
     (Henry Ford Hlth.), 5 3/4s, 11/15/39 A3 1,600,000 1,886,592
     (Henry Ford Hlth. Syst.), Ser. A, 5 1/4s, 11/15/46 A3 2,565,000 2,679,218
     (Chelsea Cmnty. Hosp. Oblig.), 5s, 5/15/25 (Prerefunded 5/15/15) AA+ 755,000 765,351
MI State Strategic Fund Ltd. Oblig. Rev. Bonds (Cadillac Place Office Bldg.), 5 1/4s, 10/15/26 A1 1,250,000 1,513,013
MI State Strategic Fund, Ltd. Rev. Bonds (Worthington Armstrong Venture), U.S. Govt. Coll., 5 3/4s, 10/1/22 (Escrowed to maturity) AAA/P 1,350,000 1,687,109
MI Tobacco Settlement Fin. Auth. Rev. Bonds, Ser. A, 6s, 6/1/48 B- 4,000,000 3,476,640
Monroe Cnty., Hosp. Fin. Auth. Rev. Bonds (Mercy Memorial Hosp.), 5 1/2s, 6/1/20 Baa2 1,480,000 1,564,182
Wayne Cnty., Arpt. Auth. Rev. Bonds, Ser. A, 5s, 12/1/21 A2 2,000,000 2,346,120
25,063,134
Minnesota (2.7%)
Douglas Cnty., Gross Hlth. Care Fac. Rev. Bonds (Douglas Cnty. Hosp.)
     6 1/4s, 7/1/34 (Prerefunded 7/1/18) BBB- 1,940,000 2,296,222
     6 1/4s, 7/1/34 (Prerefunded 7/1/18) AAA/P 1,060,000 1,254,637
Inver Grove Heights, Nursing Home Rev. Bonds (Presbyterian Homes Care), 5 3/8s, 10/1/26 B/P 700,000 700,455
North Oaks, Sr. Hsg. Rev. Bonds (Presbyterian Homes North Oaks), 6 1/8s, 10/1/39 BB/P 315,000 337,538
Northfield, Hosp. Rev. Bonds, 5 3/8s, 11/1/26 BBB 750,000 801,773
Otsego, Charter School Lease Rev. Bonds (Kaleidoscope Charter School), Ser. A, 5s, 9/1/34 BB+ 800,000 832,072
Rochester, Hlth. Care Fac. Rev. Bonds (Olmsted Med. Ctr.), 5 7/8s, 7/1/30 A-/F 1,000,000 1,155,480
Sartell, Hlth. Care & Hsg. Facs. Rev. Bonds (Country Manor Campus, LLC)
     5 1/4s, 9/1/30 B-/P 500,000 531,080
     5 1/4s, 9/1/27 B-/P 750,000 808,688
Sauk Rapids Hlth. Care & Hsg. Fac. Rev. Bonds (Good Shepherd Lutheran Home), 7 1/2s, 1/1/39 (Prerefunded 1/1/16) AAA/P 500,000 532,915
St. Paul, Hsg. & Redev. Auth. Charter School Lease Rev. Bonds (Nova Classical Academy), Ser. A
     6 5/8s, 9/1/42 BBB- 250,000 288,070
     6 3/8s, 9/1/31 BBB- 250,000 296,070
St. Paul, Hsg. & Redev. Auth. Hosp. Rev. Bonds (Healtheast), 6s, 11/15/35 BBB- 1,350,000 1,395,644
St. Paul, Port Auth. Lease Rev. Bonds (Regions Hosp. Pkg. Ramp), Ser. 1, 5s, 8/1/36 A-/P 1,125,000 1,134,158
12,364,802
Mississippi (0.4%)
Warren Cnty., Gulf Opportunity Zone Rev. Bonds (Intl. Paper Co.), Ser. A, 6 1/2s, 9/1/32 Baa2 1,600,000 1,856,800
1,856,800
Missouri (0.6%)
Kansas City, Indl. Dev. Auth. Hlth. Fac. Rev. Bonds (First Mtge. Bishop Spencer), Ser. A, 6 1/2s, 1/1/35 B/P 1,500,000 1,502,415
St. Louis Arpt. Rev. Bonds (Lambert-St. Louis Intl.), Ser. A-1, 6 5/8s, 7/1/34 A3 1,000,000 1,204,520
2,706,935
Montana (0.1%)
MT Fac. Fin. Auth. Rev. Bonds (Sr. Living St. John's Lutheran), Ser. A, 6s, 5/15/25 B+/P 500,000 519,585
519,585
Nebraska (0.7%)
Central Plains, Energy Rev. Bonds (NE Gas No. 1), Ser. A, 5 1/4s, 12/1/18 A- 1,500,000 1,707,105
Lancaster Cnty., Hosp. Auth. Rev. Bonds (Immanuel Oblig. Group), 5 1/2s, 1/1/30 AA-/F 1,000,000 1,122,500
NE Pub. Pwr. Dist. Rev. Bonds, Ser. A
     5s, 1/1/39 A1 250,000 286,180
     5s, 1/1/38 A1 250,000 286,690
3,402,475
Nevada (1.2%)
Clark Cnty., Arpt. Rev. Bonds, Ser. A-2, 5s, 7/1/33 A1 1,050,000 1,237,970
Clark Cnty., Impt. Dist. Special Assmt. Bonds
     (Mountains Edge Local No. 142), 5s, 8/1/21 BBB- 600,000 662,484
     (Summerlin No. 151), 5s, 8/1/20 BB-/P 400,000 391,888
     (Summerlin No. 151), 5s, 8/1/16 BB-/P 945,000 947,674
Henderson, Local Impt. Dist. Special Assmt. Bonds
     (No. T-17), 5s, 9/1/18 BB+/P 355,000 366,055
     (No. T-18), 5s, 9/1/16 B-/P 715,000 714,328
Las Vegas, Special Assmt. Bonds
     5s, 6/1/31 B+/P 450,000 464,877
     (Dist. No. 607 Local Impt.), 5s, 6/1/23 BB/P 430,000 473,275
5,258,551
New Hampshire (1.8%)
NH Hlth. & Ed. Fac. Auth. Rev. Bonds
     (Rivermead), Ser. A, 6 7/8s, 7/1/41 BB+/P 2,000,000 2,301,400
     (Rivermead), Ser. A, 6 5/8s, 7/1/31 BB+/P 1,320,000 1,527,029
     (Kendal at Hanover), Ser. A, 5s, 10/1/18 BBB+ 1,875,000 1,880,344
NH State Bus. Fin. Auth. Rev. Bonds (Elliot Hosp. Oblig. Group), Ser. A, 6s, 10/1/27 Baa1 1,700,000 1,971,405
NH State Bus. Fin. Auth. Solid Waste Disp. Mandatory Put Bonds (10/1/19) (Casella Waste Syst., Inc.), 4s, 4/1/29 B1 350,000 355,341
8,035,519
New Jersey (8.0%)
Burlington Cnty., Bridge Comm. Econ. Dev. Rev. Bonds (The Evergreens), 5 5/8s, 1/1/38 BB+/P 2,200,000 2,270,290
NJ State Econ. Dev. Auth. Rev. Bonds
     (Ashland School, Inc.), 6s, 10/1/33 BBB 1,000,000 1,165,790
     (NYNJ Link Borrower, LLC), 5 3/8s, 1/1/43 BBB- 1,000,000 1,135,030
     (MSU Student Hsg. - Provident Group - Montclair LLC), 5 3/8s, 6/1/25 Baa3 2,000,000 2,291,380
     (Lions Gate), 5 1/4s, 1/1/44 BB-/P 300,000 312,771
     (Continental Airlines, Inc.), 5 1/4s, 9/15/29 B+ 3,000,000 3,254,130
     (United Methodist Homes), Ser. A, 5s, 7/1/29 BBB-/F 500,000 562,655
     5s, 6/15/26 Baa1 500,000 563,505
NJ State Econ. Dev. Auth. Fac. Rev. Bonds (Continental Airlines, Inc.), 5 5/8s, 11/15/30 B+ 1,500,000 1,672,710
NJ State Econ. Dev. Auth. Retirement Cmnty. Rev. Bonds (Seabrook Village, Inc.), 5 1/4s, 11/15/36 BB-/P 860,000 877,802
NJ State Econ. Dev. Auth. Wtr. Fac. Rev. Bonds (NJ American Wtr. Co.)
     Ser. A, 5.7s, 10/1/39 A1 2,600,000 3,032,094
     Ser. D, 4 7/8s, 11/1/29 A1 700,000 768,726
NJ State Hlth. Care Facs. Fin. Auth. Rev. Bonds
     (St. Joseph Hlth. Care Syst.), 6 5/8s, 7/1/38 Baa3 2,250,000 2,541,128
     (St. Peter's U. Hosp.), 6 1/4s, 7/1/35 Ba1 2,000,000 2,230,560
     (Holy Name Hosp.), 5s, 7/1/36 Baa2 2,500,000 2,586,950
North Hudson, Swr. Auth. Rev. Bonds, Ser. A, 5s, 6/1/42 A- 1,000,000 1,132,710
Tobacco Settlement Fin. Corp. Rev. Bonds
     Ser. 1A, 5s, 6/1/41 B2 5,000,000 4,027,899
     Ser. 1A, 4 3/4s, 6/1/34 B2 2,210,000 1,752,663
     zero %, 6/1/41 A- 10,000,000 2,460,100
Union Cnty., Util. Auth. Resource Recvy. Fac. Lease Rev. Bonds (Covanta Union), Ser. A, 5 1/4s, 12/1/31 AA+ 1,450,000 1,615,837
36,254,730
New Mexico (1.6%)
Farmington, Poll. Control Rev. Bonds
     (Public Service Co. of NM San Juan), Ser. D, 5.9s, 6/1/40 Baa2 500,000 561,945
     (San Juan), Ser. B, 4 7/8s, 4/1/33 Baa2 4,500,000 4,611,645
     (AZ Pub. Svc. Co.), Ser. B, 4.7s, 9/1/24 A3 2,000,000 2,192,400
7,365,990
New York (9.3%)
Broome Cnty., Indl. Dev. Agcy. Continuing Care Retirement Rev. Bonds (Good Shepard Village), Ser. A, 6 3/4s, 7/1/28 B/P 600,000 637,920
Livingston Cnty., Indl. Dev. Agcy. Civic Fac. Rev. Bonds (Nicholas H. Noyes Memorial Hosp.), 5 3/4s, 7/1/15 BB 435,000 435,383
Nassau Cnty., Indl. Dev. Agcy. Rev. Bonds (Keyspan-Glenwood), 5 1/4s, 6/1/27 A- 2,775,000 2,784,824
NY City, G.O. Bonds, Ser. F, 5s, 8/1/31 Aa2 1,500,000 1,762,305
NY City, Indl. Dev. Agcy. Special Fac. Rev. Bonds
     (American Airlines - JFK Intl. Arpt.), 7 1/2s, 8/1/16 B+/P 1,560,000 1,631,354
     (British Airways PLC), 5 1/4s, 12/1/32 BB 3,425,000 3,437,774
     (Jetblue Airways Corp.), 5s, 5/15/20 B 235,000 235,564
NY City, Muni. Wtr. & Swr. Fin. Auth. Rev. Bonds, 5s, 6/15/31(T) AA+ 10,000,000 11,714,905
NY City, Transitional Fin. Auth. Bldg. Aid Rev. Bonds (Fiscal 2015), Ser. S-1, 5s, 7/15/43 Aa2 500,000 591,110
NY State Dorm. Auth. Rev. Bonds, Ser. A, 5s, 3/15/38 AAA 1,500,000 1,777,440
NY State Dorm. Auth. Non-State Supported Debt Rev. Bonds (Orange Regl. Med. Ctr.), 6 1/4s, 12/1/37 Ba1 725,000 792,766
NY State Dorm. Auth. Non-Supported Debt Rev. Bonds (NYU Hosp. Ctr.), 5s, 7/1/34 A3 500,000 588,605
NY State Dorm. Auth. Rev. Bonds, Ser. C, 5s, 3/15/31(T) AAA 5,000,000 5,870,952
NY State Energy Research & Dev. Auth. Gas Fac. Rev. Bonds (Brooklyn Union Gas), 6.952s, 7/1/26 A2 3,800,000 3,812,768
NY State Env. Fac. Corp. Solid Waste Disp. Mandatory Put Bonds (12/2/19) (Casella Waste Syst., Inc.), 3 3/4s, 12/1/44 B1 1,000,000 1,007,800
NY State Liberty Dev. Corp. 144A Rev. Bonds (World Trade Ctr.)
     Class 2, 5 3/8s, 11/15/40 BB-/P 750,000 854,243
     Class 1, 5s, 11/15/44 BB-/P 1,250,000 1,339,825
Onondaga, Civic Dev. Corp. Rev. Bonds (St. Joseph's Hosp. Hlth. Ctr.), 5 1/8s, 7/1/31 Ba2 1,620,000 1,770,223
Port Auth. NY & NJ Special Oblig. Rev. Bonds (JFK Intl. Air Term.), 6s, 12/1/42 Baa3 1,000,000 1,190,380
Port Auth. of NY & NJ Rev. Bonds (Kennedy Intl. Arpt. - 5th Installment), 6 3/4s, 10/1/19 BB+/P 155,000 155,050
42,391,191
North Carolina (1.8%)
NC Eastern Muni. Pwr. Agcy. Syst. Rev. Bonds, Ser. C, 6 3/4s, 1/1/24 A- 750,000 897,645
NC Med. Care Cmnty. Hlth. Care Fac. Rev. Bonds
     (Presbyterian Homes), 5.4s, 10/1/27 BB/P 2,000,000 2,044,379
     (First Mtge. - Presbyterian Homes), 5 3/8s, 10/1/22 BB/P 1,110,000 1,140,847
NC Med. Care Comm. Retirement Fac. Rev. Bonds
     (Carolina Village), 6s, 4/1/38 BB/P 1,000,000 1,068,910
     (First Mtge.), Ser. A-05, 5 1/2s, 10/1/35 BB+/P 1,730,000 1,731,522
     (First Mtge.), Ser. A-05, 5 1/4s, 10/1/25 BB+/P 95,000 95,109
     (Forest at Duke), 5 1/8s, 9/1/27 BBB+/F 1,000,000 1,044,930
NC State Hsg. Fin. Agcy. (Homeownership), Ser. 26-A, 5 1/2s, 1/1/38 Aa2 25,000 25,323
8,048,665
Ohio (4.3%)
Buckeye, Tobacco Settlement Fin. Auth. Rev. Bonds
     Ser. A-3, 6 1/4s, 6/1/37 B3 850,000 760,861
     Ser. A-2, 6s, 6/1/42 B3 2,500,000 2,132,850
     Ser. A-2, 5 7/8s, 6/1/30 B3 1,315,000 1,143,695
     Ser. A-2, 5 3/4s, 6/1/34 B3 1,675,000 1,411,171
Franklin Cnty., Hlth. Care Fac. Rev. Bonds (Presbyterian Svcs.), Ser. A, 5 5/8s, 7/1/26 BBB- 2,750,000 3,088,854
Hickory Chase Cmnty. Auth. Rev. Bonds (Infrastructure Impt.), 7s, 12/1/38(F) CCC/P 644,000 77,216
Lake Cnty., Hosp. Fac. Rev. Bonds (Lake Hosp. Syst.), Ser. C, 5 5/8s, 8/15/29 A3 1,530,000 1,750,198
Lorain Cnty., Port Auth. Recovery Zone Fac. Rev. Bonds (U.S. Steel Corp.), 6 3/4s, 12/1/40 BB- 1,000,000 1,147,720
OH State Rev. Bonds (Northeast OH Regl. Swr. Dist.), 5s, 11/15/44 Aa1 1,500,000 1,793,325
OH State Air Quality Dev. Auth. Rev. Bonds (Valley Elec. Corp.), Ser. E, 5 5/8s, 10/1/19 Baa3 1,300,000 1,482,455
OH State Air Quality Dev. Auth., Poll. Control Mandatory Put Bonds (5/1/20) (FirstEnergy Nuclear), Ser. C, 3.95s, 11/1/32 Baa3 450,000 482,315
OH State Higher Edl. Fac. Comm. Rev. Bonds (Kenyon College), 5s, 7/1/44 A1 800,000 890,712
OH State Wtr. Dev. Auth. Poll. Control Mandatory Put Bonds (6/3/19) (FirstEnergy Nuclear Generation, LLC), 4s, 12/1/33 Man Put date is 6/3/19 Baa3 1,550,000 1,671,257
Southeastern OH Port Auth. Hosp. Fac. Rev. Bonds, 5 3/4s, 12/1/32 BB/F 900,000 958,176
Toledo-Lucas Cnty., Port Auth. Rev. Bonds (CSX Transn, Inc.), 6.45s, 12/15/21 Baa1 500,000 632,355
19,423,160
Oklahoma (0.9%)
OK Hsg. Fin. Agcy. Single Fam. Rev. Bonds (Homeownership Loan), Ser. B, 5.35s, 3/1/35 Aaa 525,000 532,250
OK Hsg. Fin. Agcy. Single Family Mtge. Rev. Bonds (Homeownership Loan), Ser. C, GNMA Coll., FNMA Coll., 5.95s, 3/1/37 Aaa 480,000 492,062
Tulsa Cnty., Indl. Auth. Rev. Bonds (Sr. Living Cmnty. Montereau, Inc.), Ser. A
     7 1/8s, 11/1/30 BB-/P 1,250,000 1,394,175
     6 7/8s, 11/1/23 BB-/P 500,000 503,085
Tulsa, Muni. Arpt. Trust Rev. Bonds (American Airlines, Inc.), Ser. B, 5 1/2s, 12/1/35 B+/P 1,250,000 1,358,513
4,280,085
Oregon (0.4%)
Multnomah Cnty., Hosp. Fac. Auth. Rev. Bonds
     (Mirabella at South Waterfront), Ser. A, 5.4s, 10/1/44 BB-/P 500,000 538,560
     (Terwilliger Plaza, Inc.), 5s, 12/1/29 BBB/F 350,000 385,144
Warm Springs Reservation, Confederated Tribes 144A Rev. Bonds (Pelton Round Butte Tribal), Ser. B, 6 3/8s, 11/1/33 A3 700,000 793,394
1,717,098
Pennsylvania (6.5%)
Allegheny Cnty., Higher Ed. Bldg. Auth. Rev. Bonds (Robert Morris U.), Ser. A, 5 1/2s, 10/15/30 Baa3 1,000,000 1,103,520
Allegheny Cnty., Indl. Dev. Auth. Rev. Bonds (U.S. Steel Corp.), 6 3/4s, 11/1/24 BB- 1,500,000 1,733,160
Allentown, Neighborhood Impt. Zone Dev. Auth. Rev. Bonds, Ser. A
     5s, 5/1/42 Baa2 800,000 873,456
     5s, 5/1/35 Baa2 500,000 551,635
     5s, 5/1/32 Baa2 200,000 221,868
Beaver Cnty., Indl. Dev. Auth. Mandatory Put Bonds (6/1/20) (FirstEnergy Nuclear Generation, LLC), Ser. B, 3 1/2s, 12/1/35 Baa3 2,000,000 2,101,120
Chester Cnty., Indl. Dev. Auth. Rev. Bonds (Renaissance Academy Charter School), 5s, 10/1/34 BBB- 350,000 383,376
Chester Cnty., Indl. Dev. Auth. Student Hsg. Rev. Bonds (West Chester U. Student Hsg., LLC), Ser. A, 5s, 8/1/45 Baa3 1,000,000 1,066,940
Lancaster Cnty., Hosp. Auth. Rev. Bonds (Brethren Village), Ser. A, 6 3/8s, 7/1/30 BB-/P 625,000 657,413
Lycoming Cnty., Auth. Rev. Bonds, 5s, 5/1/26 A 2,000,000 2,258,540
Lycoming Cnty., Auth. Hlth. Syst. Rev. Bonds (Susquehanna Hlth. Syst.), Ser. A, 5 3/4s, 7/1/39 BBB+ 3,000,000 3,259,380
Montgomery Cnty., Indl. Auth. Resource Recvy. Rev. Bonds
     (Whitemarsh Cont. Care), 6 1/4s, 2/1/35 B+/P 1,100,000 1,102,288
     (Whitemarsh Continuing Care Retirement Cmnty, Inc.), 6 1/8s, 2/1/28 B+/P 700,000 701,799
Northampton Cnty., Hosp. Auth. Mandatory Put Bonds (8/15/16) (Saint Luke's Hosp.), Ser. C, 4 1/2s, 8/15/32 A3 1,500,000 1,580,955
Northampton Cnty., Indl. Dev. Auth. Tax Alloc. Bonds (Rte. 33), 7s, 7/1/32 B/P 800,000 887,256
PA State Econ. Dev. Fin. Auth. Resource Recvy. Rev. Bonds (Colver), Ser. F, AMBAC, 5s, 12/1/15 BBB- 1,650,000 1,705,457
PA State Higher Edl. Fac. Auth. Rev. Bonds
     (Shippensburg U.), 6 1/4s, 10/1/43 Baa3 500,000 572,070
     (Edinboro U. Foundation), 5.8s, 7/1/30 Baa3 1,000,000 1,097,930
     (Gwynedd Mercy College), Ser. KK1, 5 3/8s, 5/1/42 BBB 785,000 851,717
     (Indiana U.), Ser. A, 5s, 7/1/41 BBB+ 500,000 535,075
PA State Tpk. Comm. Rev. Bonds
     Ser. C, 5s, 12/1/44 A1 1,000,000 1,164,430
     Ser. A, 5s, 12/1/38 A1 500,000 585,460
Philadelphia, Auth. for Indl. Dev. Rev. Bonds (Master Charter School), 6s, 8/1/35 BBB+ 1,055,000 1,160,289
Philadelphia, Gas Wks. Rev. Bonds, Ser. 9, 5s, 8/1/30 A- 1,000,000 1,148,560
Philadelphia, Hosp. & Higher Ed. Fac. Auth. Rev. Bonds (Graduate Hlth. Syst.), 7 1/4s, 7/1/13 (In default)(NON)(DEF) D/P 2,583,821 258
Susquehanna, Area Regl. Arpt. Syst. Auth. Rev. Bonds, Ser. A, 6 1/2s, 1/1/38 Baa3 1,325,000 1,435,108
Wilkes-Barre, Fin. Auth. Rev. Bonds (Wilkes U.), 5s, 3/1/22 BBB 560,000 588,129
29,327,189
Puerto Rico (1.2%)
Children's Trust Fund Tobacco Settlement (The) Rev. Bonds (Asset Backed Bonds), 5 5/8s, 5/15/43 Ba2 1,300,000 1,273,740
Cmnwlth. of PR, G.O. Bonds
     Ser. A, FGIC, 5 1/2s, 7/1/21 B 1,000,000 873,700
     (Pub. Impt.), Ser. A, NATL, 5 1/2s, 7/1/20 AA- 1,000,000 1,072,770
Cmnwlth. of PR, Sales Tax Fin. Corp. Rev. Bonds
     Ser. A, 5 3/8s, 8/1/39 B 2,300,000 1,620,189
     Ser. C, 5 3/8s, 8/1/36 B 530,000 381,377
     Ser. A, AMBAC, zero %, 8/1/47 B 3,000,000 397,290
5,619,066
Rhode Island (0.3%)
Tobacco Settlement Fin. Corp. Rev. Bonds, Ser. A, 6 1/8s, 6/1/32 BBB 1,490,000 1,499,342
1,499,342
South Carolina (1.6%)
Georgetown Cnty., Env. Impt. Rev. Bonds (Intl. Paper Co.), Ser. A, 5s, 8/1/30 Baa2 1,135,000 1,135,965
SC State Pub. Svc. Auth. Rev. Bonds
     (Santee Cooper), Ser. A, 5 3/4s, 12/1/43 AA- 3,000,000 3,722,100
     Ser. A, 5 1/2s, 12/1/54 AA- 2,000,000 2,391,420
7,249,485
Tennessee (0.4%)
Johnson City, Hlth. & Edl. Fac. Board Hosp. Rev. Bonds (Mountain States Hlth. Alliance), 6s, 7/1/38 Baa1 1,450,000 1,670,328
1,670,328
Texas (13.5%)
Brazos, Harbor Indl. Dev. Corp. Env. Fac. Mandatory Put Bonds (5/1/28) (Dow Chemical), 5.9s, 5/1/38 BBB 3,735,000 4,193,620
Central TX Regl. Mobility Auth. Rev. Bonds (Sr. Lien), Ser. A, 5s, 1/1/33 Baa2 525,000 599,613
Clifton, Higher Ed. Fin. Corp. Rev. Bonds (Idea Pub. Schools)
     6s, 8/15/33 BBB 500,000 602,545
     5s, 8/15/32 BBB 315,000 349,338
Grand Parkway Trans. Corp. Rev. Bonds, Ser. B, 5 1/4s, 10/1/51 AA+ 2,000,000 2,316,020
Harris Cnty., Cultural Ed. Fac. Fin. Corp. Rev. Bonds (YMCA of Greater Houston), Ser. A, 5s, 6/1/33 Baa3 1,000,000 1,099,890
Houston, Arpt. Syst. Rev. Bonds
     (Continental Airlines, Inc.), Ser. C, 5.7s, 7/15/29 B+ 6,185,000 6,190,505
     Ser. A, 5s, 7/1/24 A 1,500,000 1,756,575
     (United Airlines, Inc.), 4 3/4s, 7/1/24 B+ 1,300,000 1,430,364
La Vernia, Higher Ed. Fin. Corp. Rev. Bonds (Kipp, Inc.), Ser. A
     6 3/8s, 8/15/44 BBB 1,100,000 1,244,210
     6 1/4s, 8/15/39 BBB 1,975,000 2,228,037
Love Field, Arpt. Modernization Corp. Special Fac. Rev. Bonds (Southwest Airlines Co.), 5 1/4s, 11/1/40 Baa2 3,500,000 3,863,790
Matagorda Cnty., Poll. Control Rev. Bonds
     (Central Pwr. & Light Co.), Ser. A, 6.3s, 11/1/29 Baa1 1,000,000 1,158,240
     (Dist. No. 1), Ser. A, AMBAC, 4.4s, 5/1/30 Baa1 1,250,000 1,378,838
New Hope, Cultural Ed. Facs. Fin. Corp. Rev. Bonds
     (Wesleyan Homes, Inc.), 5 1/2s, 1/1/43 BB-/P 500,000 515,380
     (Collegiate Hsg.-Tarleton St.), 5s, 4/1/39 Baa3 500,000 540,790
     (TX A&M U. Collegiate & Student Hsg. College Station I, LLC), Ser. A, 5s, 4/1/29 Baa3 530,000 590,054
Newark, Cultural Ed. Facs. Fin. Corp. Rev. Bonds (AW Brown-Fellowship Leadership Academy), Ser. A, 6s, 8/15/42 BBB- 670,000 691,762
North Texas Edl. Fin. Co. Rev. Bonds (Uplift Edl.), Ser. A, 5 1/4s, 12/1/47 BBB- 2,000,000 2,249,080
North TX, Tollway Auth. Rev. Bonds
     (1st Tier), Ser. A, 6s, 1/1/25 A2 120,000 136,192
     (1st Tier), Ser. A, FNMA Coll., U.S. Govt. Coll., 6s, 1/1/25 (Prerefunded 1/1/18) AAA/P 880,000 1,014,306
     (Toll 2nd Tier), Ser. F, 5 3/4s, 1/1/38 A3 1,750,000 1,942,868
Red River, Hlth. Retirement Facs. Dev. Corp. Rev. Bonds
     (Happy Harbor Methodist Home, Inc.), Ser. A, 7 3/4s, 11/15/44 B-/P 420,000 486,557
     (Sears Methodist Retirement Syst. Oblig. Group), Ser. C, 6 1/4s, 5/9/53 (In default)(NON) D/P 39,000 23,790
     (Sears Methodist Retirement Syst. Oblig. Group), Ser. B, 6.15s, 11/15/49 (In default)(NON) D/P 749,000 456,890
     (Sears Methodist Retirement Syst. Oblig. Group), Ser. A, 6.05s, 11/15/46 (In default)(NON) D/P 441,000 269,010
     (Sears Methodist Retirement Syst. Oblig. Group), Ser. D, 6.05s, 11/15/46 (In default)(NON) D/P 76,000 46,360
     (Sears Methodist Retirement Syst. Oblig. Group), Ser. A, 5.45s, 11/15/38 (In default)(NON) D/P 1,124,000 685,640
     (Sears Methodist Retirement Syst. Oblig. Group), Ser. A, 5.15s, 11/15/27 (In default)(NON) D/P 593,000 361,730
Tarrant Cnty., Cultural Ed. Fac. Fin. Corp. Retirement Fac. Rev. Bonds
     (Sr. Living Ctr.), Ser. A, 8 1/4s, 11/15/39 B+/P 2,825,000 2,852,233
     (Buckner Retirement Svcs., Inc.), 5 1/4s, 11/15/37 A- 1,900,000 2,036,781
     (Air Force Village), 5 1/8s, 5/15/27 BBB-/F 2,850,000 2,985,632
Travis Cnty., Cultural Ed. Facs. Fin. Corp. Rev. Bonds (Wayside Schools), Ser. A, 5 1/4s, 8/15/42 BB+ 1,000,000 1,034,010
TX Muni. Gas Acquisition & Supply Corp. I Rev. Bonds, Ser. A, 5 1/4s, 12/15/24 A- 2,000,000 2,398,720
TX Private Activity Surface Trans. Corp. Rev. Bonds
     (NTE Mobility), 7 1/2s, 12/31/31 Baa2 2,000,000 2,457,080
     (LBJ Infrastructure), 7s, 6/30/40 Baa3 2,500,000 3,034,425
TX State G.O. Bonds (Trans. Auth.), Ser. A, 5s, 10/1/44 Aaa 3,500,000 4,216,590
TX State Dept. of Hsg. & Cmnty. Affairs Rev. Bonds, Ser. C, GNMA Coll., FNMA Coll., FHLMC Coll., 6.9s, 7/2/24 AA+ 250,000 253,653
TX State Muni. Gas Acquisition & Supply Corp. III Rev. Bonds, 5s, 12/15/28 A3 1,500,000 1,704,210
61,395,328
Virginia (1.8%)
Albemarle Cnty., Indl. Dev. Auth. Res. Care Fac. Rev. Bonds (Westminster-Canterbury), 5s, 1/1/24 BB/P 600,000 612,114
Henrico Cnty., Econ. Dev. Auth. Res. Care Fac. Rev. Bonds (United Methodist Homes), 5s, 6/1/22 BB+/P 625,000 691,038
Lynchburg, Indl. Dev. Auth. Res. Care Fac. Rev. Bonds (Westminster-Canterbury)
     5s, 7/1/31 BB+/P 1,250,000 1,288,825
     4 7/8s, 7/1/21 BB+/P 1,000,000 1,045,360
VA State Small Bus. Fin. Auth. Rev. Bonds
     (Elizabeth River Crossings OPCO, LLC), 6s, 1/1/37 BBB- 900,000 1,057,230
     (Express Lanes, LLC), 5s, 7/1/34 BBB- 1,150,000 1,253,535
Washington Cnty., Indl. Dev. Auth. Hosp. Fac. Rev. Bonds (Mountain States Hlth. Alliance), Ser. C, 7 3/4s, 7/1/38 Baa1 1,700,000 2,018,427
7,966,529
Washington (3.0%)
WA State G.O. Bonds (Sr. 520 Corridor-Motor Vehicle Tax), Ser. C, 5s, 6/1/28(T) AA+ 5,000,000 5,991,714
Port Seattle, Port Indl. Dev. Corp. Rev. Bonds (Delta Airlines, Inc.), 5s, 4/1/30 BB 300,000 312,837
Skagit Cnty., Pub. Hosp. Rev. Bonds (Dist. No. 001), 5 3/4s, 12/1/35 Baa2 2,500,000 2,805,150
Tobacco Settlement Auth. of WA Rev. Bonds, 5 1/4s, 6/1/32 A- 1,275,000 1,446,958
WA State Higher Ed. Fac. Auth. Rev. Bonds (Whitworth U.), 5 5/8s, 10/1/40 Baa1 400,000 433,360
WA State Hlth. Care Fac. Auth. Rev. Bonds
     (WA Hlth. Svcs.), 7s, 7/1/39 Baa2 1,000,000 1,167,580
     (Kadlec Med. Ctr.), 5 1/2s, 12/1/39 (Prerefunded 12/1/20) AAA/P 1,300,000 1,611,090
13,768,689
West Virginia (0.4%)
WV State Econ. Dev. Auth. Poll Control Rev. Bonds (Appalachian Pwr. Co. - Amos), Ser. C, 3 1/4s, 5/1/19 Baa1 1,000,000 1,052,620
WV State Hosp. Fin. Auth. Rev. Bonds (Thomas Hlth. Syst.), 6 3/4s, 10/1/43 B+/P 735,000 772,191
1,824,811
Wisconsin (1.1%)
Pub. Fin. Auth. Arpt. Fac. Rev. Bonds (Sr. Oblig. Group), 5 1/4s, 7/1/28 BBB 350,000 392,809
WI State Hlth. & Edl. Facs. Auth. Rev. Bonds
     (St. Johns Cmntys. Inc.), Ser. A, 7 5/8s, 9/15/39 BB+/P 1,350,000 1,614,533
     (Prohealth Care, Inc.), 6 5/8s, 2/15/39 (Prerefunded 2/15/19) A1 1,250,000 1,536,550
WI State Pub. Fin. Auth Sr. Living Rev. Bonds (Rose Villa, Inc.), Ser. A, 5 3/4s, 11/15/44 BB-/P 1,550,000 1,616,991
5,160,883
Total municipal bonds and notes (cost $527,827,624) $585,013,293

PREFERRED STOCKS (0.8%)(a)
Shares Value
MuniMae Tax Exempt Bond Subsidiary, LLC 144A Ser. A-5, $5.00 cum. pfd. 3,700,000 $3,858,323
Total preferred stocks (cost $3,700,000) $3,858,323

COMMON STOCKS (0.0%)(a)
Shares Value
Tembec, Inc. (Canada)(NON) 1,750 $3,884
Total common stocks (cost $1,273,945) $3,884

TOTAL INVESTMENTS
Total investments (cost $532,801,569)(b) $588,875,500













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 November 1, 2014 through January 31, 2015 (the reporting period). Within the following notes to the portfolio, references to “ASC 820” represent Accounting Standards Codification 820 Fair Value Measurements and Disclosures, references to “Putnam Management” represent Putnam Investment Management, LLC, the fund's manager, an indirect wholly-owned subsidiary of Putnam Investments, LLC and references to “OTC”, if any, represent over-the-counter.
(a) Percentages indicated are based on net assets of $454,089,201.
(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 Putnam are indicated by “/P.” Securities rated by Fitch are indicated by “/F.” If a security is insured, it will usually be rated by the ratings organizations based on the financial strength of the insurer.
(b) The aggregate identified cost on a tax basis is $532,367,148, resulting in gross unrealized appreciation and depreciation of $63,188,414 and $6,680,062, respectively, or net unrealized appreciation of $56,508,352.
(DEF) This security is in default of principal and interest.
(NON) This security is non-income-producing.
(FWC) Forward commitment, in part or in entirety.
(F) This security is valued at fair value following procedures approved by the Trustees. Securities may be classified as Level 2 or Level 3 for ASC 820 based on the securities' valuation inputs.
(T) Underlying security in a tender option bond transaction. The security has been segregated as collateral for financing transactions.
At the close of the reporting period, the fund maintained liquid assets totaling $18,270,000 to cover tender option bonds.
144A after the name of an issuer represents securities exempt from registration under Rule 144A under 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.
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):
Healthcare 36.0%
Utilities 20.5
Transportation 17.1
Education 13.7

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 has 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.
Certain investments, including certain restricted and illiquid securities and derivatives are also valued at fair value following procedures approved by the Trustees. 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. 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. 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.
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 issued 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 $31,826,359 were held by the TOB trust and served as collateral for $13,556,359 in floating-rate bonds outstanding. During the reporting period, the fund incurred interest expense of $1,366 for these investments based on an average interest rate of 0.04%.












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
Common stocks*:
    Basic materials $3,884 $— $—
Total common stocks 3,884 — —
Municipal bonds and notes $— $584,885,149 $128,144
Preferred stocks — 3,858,323 —
Totals by level $3,884 $588,743,472 $128,144


* Common stock classifications are presented at the sector level, which may differ from the fund's portfolio presentation.
During the reporting period, transfers within the fair value hierarchy, if any, did not represent, in the aggregate, more than 1% of the fund's net assets measured as of the end of the period.
At the start and close of the reporting period, Level 3 investments in securities represented less than 1% of the fund's net assets and were not considered a significant portion of the fund's portfolio.

For additional information regarding the fund please see the fund's most recent annual or semiannual shareholder report filed on the Securities and Exchange Commission's Web site, www.sec.gov, or visit Putnam's Individual Investor Web site at www.putnaminvestments.com



Item 2. 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 3. Exhibits:
Separate certifications for the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are filed herewith.

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 Managed Municipal Income Trust
By (Signature and Title):
/s/ Janet C. Smith
Janet C. Smith
Principal Accounting Officer
Date: March 31, 2015

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 31, 2015

By (Signature and Title):
/s/ Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer
Date: March 31, 2015