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, 2018
Date of reporting period: January 31, 2018



Item 1. Schedule of Investments:













Putnam Managed Municipal Income Trust

The fund's portfolio
1/31/18 (Unaudited)
Key to holding's abbreviations
ABAG — Association Of Bay Area Governments
AGM — Assured Guaranty Municipal Corporation
AMBAC — AMBAC Indemnity Corporation
BAM — Build America Mutual
COP — Certificates of Participation
FGIC — Financial Guaranty Insurance Company
FHLMC Coll. — Federal Home Loan Mortgage Corporation Collateralized
FNMA Coll. — Federal National Mortgage Association Collateralized
FRN — Floating Rate Notes: the rate shown is the current interest rate or yield at the close of the reporting period. Rates may be subject to a cap or floor. For certain securities, the rate may represent a fixed rate currently in place at the close of the reporting period.
G.O. Bonds — General Obligation Bonds
GNMA Coll. — Government National Mortgage Association Collateralized
IFB — Inverse Floating Rate Bonds, which are securities that pay interest rates that vary inversely to changes in the market interest rates. As interest rates rise, inverse floaters produce less current income. The rate shown is the current interest rate at the close of the reporting period. Rates may be subject to a cap or floor.
NATL — National Public Finance Guarantee Corp.
PSFG — Permanent School Fund Guaranteed
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. Rates are set by remarketing agents and may take into consideration market supply and demand, credit quality and the current SIFMA Municipal Swap Index rate, which was 1.08% as of the close of the reporting period.
MUNICIPAL BONDS AND NOTES (128.7%)(a)
Rating(RAT) Principal amount Value
Alabama (2.1%)
Cullman Cnty., Hlth. Care Auth. Rev. Bonds (Cullman Regl. Med. Ctr.), Ser. A, 6.75%, 2/1/29 Baa3 $1,100,000 $1,132,109
Jefferson Cnty., Swr. Rev. Bonds
Ser. D, 6.50%, 10/1/53 BBB- 500,000 593,520
zero %, 10/1/46 BBB- 3,950,000 3,301,252
Jefferson, Cnty. Rev. Bonds (Warrants)
5.00%, 9/15/34 AA 2,075,000 2,352,511
5.00%, 9/15/33 AA 275,000 312,708
Selma, Indl. Dev. Board Rev. Bonds (Gulf Opportunity Zone Intl. Paper Co.), Ser. A, 6.25%, 11/1/33 BBB 1,000,000 1,078,150
8,770,250
Alaska (0.3%)
Northern Tobacco Securitization Corp. Rev. Bonds, Ser. A, 5.00%, 6/1/46 B3 1,500,000 1,470,930
1,470,930
Arizona (4.0%)
AZ State Indl. Dev. Auth. Ed. 144A Rev. Bonds (BASIS Schools, Inc.), Ser. G, 5.00%, 7/1/37 BB 500,000 524,475
Casa Grande, Indl. Dev. Auth. Rev. Bonds (Casa Grande Regl. Med. Ctr.)
Ser. A, 7.625%, 12/1/29 (escrow)(F) D/P 1,800,000 5,380
7.25%, 12/1/19 (escrow)(F) D/P 1,000,000 2,989
Maricopa Cnty., Indl. Dev. Auth. Rev. Bonds (Banner Hlth.), Ser. A, 4.00%, 1/1/41 AA- 1,000,000 1,035,610
Maricopa Cnty., Poll. Control Rev. Bonds (El Paso Elec. Co.), Ser. A, 7.25%, 2/1/40 Baa1 2,200,000 2,315,500
Phoenix, Indl. Dev. Auth. Ed. Rev. Bonds
(Great Hearts Academies), 6.00%, 7/1/32 (Prerefunded 7/1/21) AAA/P 200,000 228,046
(Choice Academies, Inc.), 5.625%, 9/1/42 BB+ 315,000 323,735
(Choice Academies, Inc.), 5.375%, 9/1/32 BB+ 675,000 698,328
(Great Hearts Academies), 5.00%, 7/1/44 BBB- 1,700,000 1,814,104
(Choice Academies, Inc.), 4.875%, 9/1/22 BB+ 680,000 718,644
Phoenix, Indl. Dev. Auth. Ed. 144A Rev. Bonds (BASIS Schools, Inc.)
Ser. A, 5.00%, 7/1/46 BB 250,000 258,753
5.00%, 7/1/35 BB 900,000 939,015
Ser. A, 5.00%, 7/1/35 BB 600,000 626,010
Salt Verde, Fin. Corp. Gas Rev. Bonds
5.50%, 12/1/29 Baa1 2,000,000 2,425,800
5.00%, 12/1/37 Baa1 2,000,000 2,388,020
5.00%, 12/1/32 Baa1 570,000 672,594
Yavapai Cnty., Indl. Dev. Auth. Hosp. Fac. Rev. Bonds
(Yavapai Regl. Med.), 5.00%, 8/1/36 Baa1 200,000 218,504
(Yavapai Regl. Med. Ctr.), 5.00%, 8/1/34 Baa1 200,000 219,268
Yavapai Cnty., Indl. Dev. Ed. Auth. Rev. Bonds (Agribusiness & Equine Ctr.), 5.00%, 3/1/32 BB+ 1,000,000 1,017,140
Yavapai Cnty., Indl. Dev. Ed. Auth. 144A Rev. Bonds, Ser. A, 5.00%, 9/1/34 BB+ 500,000 507,725
16,939,640
California (11.8%)
ABAG Fin. Auth. for Nonprofit Corps. Rev. Bonds
(Episcopal Sr. Cmntys.), 6.00%, 7/1/31 A-/F 660,000 735,352
(O'Connor Woods), 5.00%, 1/1/33 AA- 600,000 675,738
CA School Fin. Auth. Rev. Bonds (2023 Union, LLC), Ser. A, 6.00%, 7/1/33 BBB 465,000 524,055
CA State Muni. Fin. Auth. Charter School Rev. Bonds (Partnerships Uplift Cmnty.), Ser. A, 5.00%, 8/1/32 BB 665,000 680,847
CA State Poll. Control Fin. Auth. Rev. Bonds
(Wtr. Furnishing), 5.00%, 11/21/45 Baa3 1,000,000 1,079,930
(San Jose Wtr. Co.), 4.75%, 11/1/46 A 1,100,000 1,195,007
CA State Pub. Wks. Board Rev. Bonds (Dept. of Forestry & Fire), Ser. E, 5.00%, 11/1/32 A1 1,250,000 1,253,850
CA Statewide Cmnty. Dev. Auth. Rev. Bonds
(Terraces at San Joaquin Gardens), Ser. A, 6.00%, 10/1/47 BB/P 1,345,000 1,464,302
(American Baptist Homes West), 5.75%, 10/1/25 BBB+/F 3,000,000 3,185,670
(U. CA Irvine E. Campus Apts. Phase 1), 5.375%, 5/15/38 Baa1 1,000,000 1,075,050
(899 Charleston, LLC), Ser. A, 5.25%, 11/1/44 BB/P 450,000 479,115
(U. CA Irvine E. Campus Apts. Phase 1), 5.125%, 5/15/31 Baa1 2,250,000 2,419,650
Corona-Norco, School Dist. Pub. Fin. Auth. Special Tax Bonds (Sr. Lien), Ser. A, 5.00%, 9/1/28 A- 380,000 426,451
Golden State Tobacco Securitization Corp. Rev. Bonds
Ser. A-1, 5.75%, 6/1/47 B3 2,450,000 2,473,373
Ser. A-2, 5.30%, 6/1/37 B 1,000,000 1,011,310
Ser. A-1, 5.125%, 6/1/47 B3 3,235,000 3,234,968
Ser. A-1, 5.00%, 6/1/29 BBB 1,000,000 1,154,640
La Verne, COP (Brethren Hillcrest Homes), 5.00%, 5/15/36 BBB-/F 325,000 342,908
Los Angeles, Dept. of Arpt. Rev. Bonds (Los Angeles Intl. Arpt.), 5.00%, 5/15/30 AA 1,000,000 1,120,930
Los Angeles, CA Dept. Wtr. & Pwr. Rev. Bonds, Ser. C., 5%, 7/1/42(T) AA 6,498,500 7,598,356
Los Angeles, Regl. Arpt. Impt. Corp. Lease Rev. Bonds (Laxfuel Corp.), 4.50%, 1/1/27 A 400,000 424,880
M-S-R Energy Auth. Rev. Bonds, Ser. A, 6.50%, 11/1/39 BBB+ 750,000 1,047,818
Poway, Unified School Dist. Pub. Fin. Auth. Special Tax Bonds, 5.00%, 9/15/32 BBB 490,000 537,657
Rancho Cordova, Cmnty. Fac. Dist. Special Tax Bonds (Sunridge Anatolia), Ser. 03-1, 5.00%, 9/1/37 BBB-/P 350,000 378,963
San Francisco City & Cnty. Arpt. Comm. Intl. Arpt. Rev. Bonds, Ser. A, 5.00%, 5/1/30 A1 600,000 668,004
San Francisco City & Cnty., Redev. Agcy. Cmnty. Successor Special Tax Bonds (No. 6 Mission Bay Pub. Impts.), Ser. C
zero %, 8/1/43 BBB/P 2,000,000 498,440
zero %, 8/1/38 BBB/P 2,000,000 674,580
San Francisco, City & Cnty. Redev. Fin. Auth. Tax Alloc. Bonds (Mission Bay South Redev.), Ser. D, 6.625%, 8/1/39 (Prerefunded 8/1/19) BBB+ 250,000 269,133
San Joaquin Hills, Trans. Corridor Agcy. Toll Road Rev. Bonds, Ser. A, 5.00%, 1/15/34 BBB 920,000 1,041,468
San Mateo, Union High School Dist. G.O. Bonds (Election 2010), stepped-coupon zero % (6.700%, 9/1/28), 9/1/41(STP) Aaa 1,500,000 1,286,535
Santaluz, Cmnty. Fac. Dist. No. 2 Special Tax Bonds (Impt. Area No. 1), Ser. A, 5.25%, 9/1/26 (Prerefunded 9/1/21) A- 1,615,000 1,777,824
Sunnyvale, Special Tax Bonds (Cmnty. Fac. Dist. No. 1), 7.75%, 8/1/32 B+/P 835,000 837,572
Univ. of CA Rev. Bonds, Ser. AF, 5.00%, 5/15/36(T) AA 7,000,000 7,952,858
Yucaipa Special Tax Bonds (Cmnty. Fac. Dist. No. 98-1 Chapman Heights), 5.375%, 9/1/30 BBB+ 375,000 405,810
49,933,044
Colorado (3.7%)
Central Platte Valley, Metro. Dist. G.O. Bonds, 5.00%, 12/1/43 BB+ 400,000 424,012
CO Pub. Hwy. Auth. Rev. Bonds (E-470), Ser. C, 5.375%, 9/1/26 A3 500,000 540,390
CO State Educ. & Cultural Fac. Auth. Rev. Bonds (Skyview Academy), 5.125%, 7/1/34 BB+ 755,000 770,047
CO State Hlth. Fac. Auth. Rev. Bonds
(Christian Living Cmnty.), 6.375%, 1/1/41 BB/P 810,000 879,636
(Total Longterm Care National), Ser. A, 6.25%, 11/15/40 (Prerefunded 11/15/20) AAA/P 300,000 336,720
(Evangelical Lutheran Good Samaritan Society Oblig. Group (The)), 5.625%, 6/1/43 Baa2 250,000 282,095
(Evangelical Lutheran Good Samaritan Society Oblig. Group (The)), Ser. A, 5.00%, 6/1/45 Baa1 1,000,000 1,094,850
(Evangelical Lutheran Good Samaritan Society Oblig. Group (The)), 5.00%, 12/1/33 Baa2 1,100,000 1,188,671
CO State Hlth. Fac. Auth. Hosp. Rev. Bonds
(Frasier Meadows Retirement Cmnty.), Ser. A, 5.25%, 5/15/37 BB+/F 1,000,000 1,105,910
(Frasier Meadows Retirement Cmnty.), Ser. B, 5.00%, 5/15/48 BB+/F 1,500,000 1,577,310
(Christian Living Neighborhood), 5.00%, 1/1/37 BB/P 1,250,000 1,318,413
(Christian Living Neighborhood), 5.00%, 1/1/31 BB/P 500,000 534,315
E-470 CO Pub. Hwy. Auth. FRN Mandatory Put Bonds (9/1/19) (Sr. Libor Index), Ser. A, 1.95%, 9/1/39 A3 1,900,000 1,905,168
Eaton, Area Park & Recreation Dist. G.O. Bonds, 5.25%, 12/1/34 BB/P 220,000 233,048
Park Creek, Metro. Dist. Tax Allocation Bonds (Sr. Ltd. Property Tax Supported), Ser. A, 5.00%, 12/1/45 A/F 225,000 251,195
Plaza, Tax Alloc. Bonds (Metro. Dist. No. 1), 5.00%, 12/1/40 BB-/P 1,650,000 1,709,268
Regl. Trans. Dist. Rev. Bonds (Denver Trans. Partners), 6.00%, 1/15/41 Baa3 750,000 816,180
Southlands, Metro. Dist. No. 1 G.O. Bonds, Ser. A-1, 5.00%, 12/1/37 Ba1 500,000 538,600
15,505,828
Connecticut (0.4%)
Harbor Point Infrastructure Impt. Dist. 144A Tax Alloc. Bonds (Harbor Point Ltd.), 5.00%, 4/1/39 BB/P 1,500,000 1,638,105
1,638,105
Delaware (0.9%)
DE State Econ. Dev. Auth. Rev. Bonds
(Delmarva Pwr.), 5.40%, 2/1/31 Baa1 500,000 537,155
(Indian River Pwr.), 5.375%, 10/1/45 Baa3 2,600,000 2,708,706
(ASPIRA Charter School), Ser. A, 5.00%, 6/1/36 BB+ 705,000 715,991
3,961,852
District of Columbia (1.8%)
DC Rev. Bonds
(Howard U.), Ser. A, 6.50%, 10/1/41 BBB 395,000 424,412
(Howard U.), Ser. A, U.S. Govt. Coll., 6.50%, 10/1/41 (Prerefunded 4/1/21) AAA/P 5,000 5,739
(Howard U.), Ser. A, 6.25%, 10/1/32 BBB 525,000 562,648
(Howard U.), Ser. A, U.S. Govt. Coll., 6.25%, 10/1/32 (Prerefunded 4/1/21) AAA/P 475,000 541,600
(Kipp Charter School), 6.00%, 7/1/33 (Prerefunded 7/1/23) BBB+ 1,000,000 1,207,110
DC Tobacco Settlement Fin. Corp. Rev. Bonds, Ser. A, zero %, 6/15/46 CCC/P 7,500,000 1,103,700
DC, Rev. Bonds (Methodist Home of The DC (The)), Ser. A, 5.25%, 1/1/39 BB-/P 250,000 236,373
DC, Wtr. & Swr. Auth. Pub. Util. Rev. Bonds, Ser. C, 5.00%, 10/1/39 AA+ 3,000,000 3,388,830
7,470,412
Florida (6.3%)
Celebration Pointe Cmnty. Dev. Dist. No. 1 144A Special Assessment Bonds (Alachua Cnty.), 5.00%, 5/1/48 B/P 250,000 257,445
Double Branch Cmnty. Dev. Dist. Special Assmt. Bonds (Sr. Lien), Ser. A-1, 4.125%, 5/1/31 A- 500,000 516,045
Fishhawk, CCD IV Special Assmt. Bonds, 7.25%, 5/1/43 B/P 400,000 423,324
Florida State Higher Edl. Fac. Rev. Bonds (U. of Tampa), Ser. A, 5.00%, 4/1/32 A- 600,000 658,452
Greater Orlando Aviation Auth. Rev. Bonds (JetBlue Airways Corp.), 5.00%, 11/15/36 B/P 1,000,000 1,048,620
Halifax Hosp. Med. Ctr. Rev. Bonds, 5.00%, 6/1/36 A- 1,300,000 1,429,922
Jacksonville, Econ. Dev. Comm. Indl. Dev. Rev. Bonds (Gerdau Ameristeel US, Inc.), 5.30%, 5/1/37 BBB- 1,350,000 1,350,176
Lakeland, Retirement Cmnty. 144A Rev. Bonds (1st Mtge. - Carpenters), 6.375%, 1/1/43 BBB-/F 840,000 859,438
Lakewood Ranch, Stewardship Dist. Special Assessment Bonds (Village of Lakewood Ranch South), 5.125%, 5/1/46 B+/P 965,000 1,002,732
Lakewood Ranch, Stewardship Dist. Special Assmt. Bonds, 4.875%, 5/1/35 BB-/P 490,000 500,613
Martin Cnty., Rev. Bonds (Indiantown Cogeneration), 4.20%, 12/15/25 Baa2 1,500,000 1,532,880
Miami Beach, Hlth. Fac. Auth. Hosp. Rev. Bonds (Mount Sinai Med. Ctr.), 5.00%, 11/15/29 Baa1 1,000,000 1,076,940
Miami-Dade Cnty., Rev. Bonds (Tran. Syst. Sales Surtax), 5.00%, 7/1/42 AA 2,000,000 2,200,660
Miami-Dade Cnty., Indl. Dev. Auth. Rev. Bonds (Pinecrest Academy, Inc.), 5.00%, 9/15/34 BBB 1,240,000 1,305,534
Miami-Dade Cnty., Transit Syst. Rev. Bonds, 4.00%, 7/1/36 AA 3,000,000 3,164,400
Midtown Miami Cmnty. Dev. Dist. Special Assmt. Bonds (Garage), Ser. A, 5.00%, 5/1/29 BB-/P 570,000 603,619
Palm Beach Cnty., Hlth. Fac. Auth. Rev. Bonds (Acts Retirement-Life Cmnty.), 5.50%, 11/15/33 (Prerefunded 11/15/20) A-/F 2,000,000 2,207,040
Sarasota Cnty., Hlth. Fac. Auth. Rev. Bonds (Village on the Isle), Ser. A, 5.00%, 1/1/37 BBB-/F 1,000,000 1,095,420
South Lake Hosp. Dist. Rev. Bonds (South Lake Hosp.), Ser. A, 6.00%, 4/1/29 Baa1 1,000,000 1,040,570
Southeast Overtown Park West Cmnty. Redev. Agcy. 144A Tax Alloc. Bonds, Ser. A-1, 5.00%, 3/1/30 BBB+ 480,000 531,749
Tallahassee, Hlth. Fac. Rev. Bonds (Tallahassee Memorial HealthCare, Inc.), Ser. A, 5.00%, 12/1/55 Baa1 1,000,000 1,072,170
Tolomato, Cmnty. Dev. Dist. Special Assmt. Bonds, 5.40%, 5/1/37 B+/P 670,000 670,771
Verandah, West Cmnty. Dev. Dist. Special Assmt. Bonds (Cap. Impt.), 5.00%, 5/1/33 B+/P 470,000 477,327
Village Cmnty. Dev. Dist. No. 10 Special Assmt. Bonds, 5.75%, 5/1/31 BB/P 755,000 868,348
Village Cmnty. Dev. Dist. No. 8 Special Assmt. Bonds (Phase II), 6.125%, 5/1/39 BBB-/P 385,000 417,055
Village Cmnty. Dev. Dist. No. 9 Special Assmt. Bonds, 5.00%, 5/1/22 BBB-/P 325,000 338,631
26,649,881
Georgia (3.9%)
Atlanta, Tax Allocation Bonds (Beltline), Ser. B, 5.00%, 1/1/31 A2 1,000,000 1,141,940
Clayton Cnty., Dev. Auth. Special Fac. Rev. Bonds (Delta Airlines), Ser. A, 8.75%, 6/1/29 Baa3 3,000,000 3,415,890
Cobb Cnty., Dev. Auth. Student Hsg. Rev. Bonds (Kennesaw State U. Real Estate Oblig. Group), Ser. C, 5.00%, 7/15/38 Baa2 750,000 801,398
Forsyth Cnty., Hosp. Auth. Rev. Bonds (Baptist Hlth. Care Syst.), U.S. Govt. Coll., 6.25%, 10/1/18 (Escrowed to maturity) AA+ 260,000 268,440
GA State Private College & U. Auth. Rev. Bonds (Mercer U.)
Ser. C, 5.25%, 10/1/30 Baa2 750,000 815,070
Ser. A, 5.25%, 10/1/27 Baa2 1,000,000 1,098,590
Ser. A, 5.00%, 10/1/32 Baa2 1,000,000 1,055,700
Gainesville & Hall Cnty., Dev. Auth. Edl. Fac. Rev. Bonds (Riverside Military Academy)
5.00%, 3/1/47 BBB-/F 1,000,000 1,046,010
5.00%, 3/1/37 BBB-/F 1,450,000 1,541,278
Gainesville & Hall Cnty., Devauth Retirement Cmnty. Rev. Bonds (Acts Retirement-Life Cmnty.), Ser. A-2, 6.375%, 11/15/29 (Prerefunded 11/15/19) A-/F 700,000 759,640
Marietta, Dev. Auth. Rev. Bonds (Fac. of Life U., Inc.), Ser. PJ, 6.25%, 6/15/20 (Prerefunded 6/15/18) AAA/P 535,000 544,716
Marietta, Dev. Auth. 144A Rev. Bonds (Life U. Fac. ), Ser. A, 5.00%, 11/1/37 Ba3 1,000,000 1,070,000
Muni. Election Auth. of GA Rev. Bonds (Plant Voltage Units 3 & 4), Ser. A, 5.50%, 7/1/60 A+ 2,000,000 2,241,120
Rockdale Cnty., Dev. Auth. Rev. Bonds (Visy Paper), Ser. A, 6.125%, 1/1/34 BB/P 600,000 601,254
16,401,046
Guam (—%)
Territory of GU, Pwr. Auth. Rev. Bonds, Ser. A, 5.00%, 10/1/34 Baa2 200,000 210,858
210,858
Hawaii (1.0%)
HI State Dept. Budget & Fin. Rev. Bonds
(Craigside), Ser. A, 9.00%, 11/15/44 (Prerefunded 11/15/19) B/P 400,000 451,368
(Hawaiian Elec. Co. - Subsidiary), 6.50%, 7/1/39 Baa2 3,000,000 3,190,260
(Kahala Nui), 5.125%, 11/15/32 A-/F 400,000 444,212
4,085,840
Illinois (10.3%)
Chicago, G.O. Bonds
Ser. A, 6.00%, 1/1/38 BBB+ 2,560,000 2,930,304
Ser. B-2, 5.50%, 1/1/37 BBB+ 2,000,000 2,155,780
Ser. C, 5.00%, 1/1/38 BBB+ 1,000,000 1,050,610
Chicago, Special Assmt. Bonds (Lake Shore East), 6.75%, 12/1/32 BB/P 1,582,000 1,591,413
Chicago, Board of Ed. G.O. Bonds
Ser. C, 5.25%, 12/1/39 B 1,500,000 1,556,505
Ser. H, 5.00%, 12/1/36 B 3,100,000 3,187,110
Chicago, Motor Fuel Tax Rev. Bonds, 5.00%, 1/1/29 Ba1 500,000 529,595
Chicago, O'Hare Intl. Arpt. Rev. Bonds
Ser. G, 5.00%, 1/1/37 A 400,000 450,816
Ser. C, 5.00%, 1/1/26 A2 2,595,000 2,881,773
Chicago, Waste Wtr. Transmission Rev. Bonds (2nd Lien), 5.00%, 1/1/39 A 1,360,000 1,468,079
Chicago, Wtr. Wks Rev. Bonds
5.00%, 11/1/39 A 875,000 955,973
5.00%, 11/1/30 A 1,000,000 1,128,200
Cicero, G.O. Bonds, Ser. A, AGM, 5.00%, 1/1/20 AA 1,250,000 1,316,913
Cook Cnty., G.O. Bonds, 5.00%, 11/15/35 AA- 500,000 559,090
Du Page Cnty., Special Svc. Area No. 31 Special Tax Bonds (Monarch Landing), 5.625%, 3/1/36 B/P 319,000 319,986
IL Fin. Auth. Rev. Bonds
(Silver Cross Hosp. & Med. Ctr.), 7.00%, 8/15/44 (Prerefunded 8/15/19) AAA/P 2,000,000 2,166,720
(Navistar Intl. Recvy. Zone), 6.75%, 10/15/40 B+ 500,000 537,795
(Rush U. Med. Ctr.), Ser. C, U.S. Govt. Coll., 6.625%, 11/1/39 (Prerefunded 5/1/19) Aaa 1,075,000 1,142,790
(American Wtr. Cap. Corp.), 5.25%, 10/1/39 A 1,575,000 1,629,952
IL State G.O. Bonds
5.00%, 11/1/41 Baa3 1,250,000 1,314,075
5.00%, 1/1/41 Baa3 700,000 733,026
5.00%, 2/1/39 Baa3 200,000 207,332
5.00%, 11/1/34 Baa3 500,000 527,875
Ser. C, 5.00%, 11/1/29 Baa3 1,200,000 1,280,016
Ser. D, 5.00%, 11/1/28 Baa3 1,000,000 1,068,340
IL State Fin. Auth. Rev. Bonds
(Provena Hlth.), Ser. A, 7.75%, 8/15/34 (Prerefunded 8/15/19) AAA/P 15,000 16,409
(Provena Hlth.), Ser. A, U.S. Govt. Coll., 7.75%, 8/15/34 (Prerefunded 8/15/19) BBB- 1,485,000 1,625,644
(Three Crowns Park), 5.25%, 2/15/47 BB-/P 540,000 570,607
(Plymouth Place), 5.25%, 5/15/45 BB+/F 1,000,000 1,052,430
(Three Crowns Park), 5.25%, 2/15/37 BB-/P 305,000 326,265
(Presence Hlth. Network), Ser. C, 5.00%, 2/15/36 Baa3 525,000 582,540
(Southern IL Healthcare Enterprises, Inc.), 5.00%, 3/1/33 A+ 700,000 791,525
(Windy City Portfolio), Ser. A-1, 4.375%, 12/1/42 A- 1,000,000 963,970
(Riverside Hlth. Syst.), 4.00%, 11/15/35 A+ 500,000 502,560
IL State Fin. Auth. Student Hsg. & Academic Fac. Rev. Bonds (U. of IL-CHF-Chicago, LLC), Ser. A
5.00%, 2/15/47 Baa3 500,000 545,105
5.00%, 2/15/37 Baa3 500,000 543,445
Metro. Pier & Exposition Auth. Rev. Bonds (McCormick Place Expansion), Ser. B, stepped-coupon zero % (4.950%, 6/15/31), 12/15/47(STP) BB+ 1,500,000 795,045
Metro. Wtr. Reclamation Dist. of Greater Chicago G.O. Bonds, Ser. A, 5.00%, 12/1/31 AA+ 1,000,000 1,151,590
Railsplitter, Tobacco Settlement Auth. Rev. Bonds, 6.00%, 6/1/28 (Prerefunded 6/1/21) AAA/P 1,050,000 1,195,929
43,353,132
Indiana (0.7%)
IN State Fin. Auth. Edl. Fac. Rev. Bonds (Butler U.), Ser. B
5.00%, 2/1/32 A- 1,000,000 1,093,740
5.00%, 2/1/29 A- 500,000 548,265
Valparaiso, Exempt Facs. Rev. Bonds (Pratt Paper, LLC), 6.75%, 1/1/34 B+/P 1,125,000 1,330,616
2,972,621
Iowa (0.7%)
IA State Fin. Auth. Midwestern Disaster Rev. Bonds (IA Fertilizer Co., LLC)
5.50%, 12/1/22 B 1,000,000 1,017,660
5.25%, 12/1/25 B 750,000 793,883
Tobacco Settlement Auth. of IA Rev. Bonds, Ser. C, 5.375%, 6/1/38 B+ 1,250,000 1,253,325
3,064,868
Kansas (0.1%)
Lenexa, Hlth. Care Fac. Rev. Bonds (LakeView Village), 7.125%, 5/15/29 (Prerefunded 5/15/19) BB/P 500,000 535,675
535,675
Kentucky (2.2%)
KY Econ. Dev. Fin. Auth. Rev. Bonds
(Masonic Home Indpt. Living II), 7.25%, 5/15/41 (Prerefunded 5/15/21) BB-/P 500,000 586,725
(Masonic Home Indpt. Living II), 7.00%, 5/15/30 (Prerefunded 5/15/21) BB-/P 500,000 582,755
(Masonic Home Indpt. Living), 5.00%, 5/15/46 BB/P 1,000,000 1,046,880
KY Pub. Trans. Infrastructure Auth. Rev. Bonds (1st Tier Downtown Crossing), Ser. A, 6.00%, 7/1/53 Baa3 1,100,000 1,235,674
KY State Econ. Dev. Fin. Auth. Rev. Bonds (Owensboro Hlth.), Ser. A, 5.25%, 6/1/41 Baa3 125,000 138,291
KY State Econ. Dev. Fin. Auth. Hlth. Care Rev. Bonds (Masonic Homes of KY), 5.375%, 11/15/42 BB-/P 900,000 944,163
Louisville & Jefferson Cnty., Metro. Govt. College Rev. Bonds (Bellarmine U.), Ser. A, 6.00%, 5/1/28 (Prerefunded 5/1/18) Baa3 500,000 505,715
Louisville & Jefferson Cnty., Metro. Govt. Hlth. Syst. Rev. Bonds (Norton Healthcare Oblig. Group), 5.50%, 10/1/33 A- 3,000,000 3,400,470
Owen Cnty., Wtr. Wks. Syst. Rev. Bonds (American Wtr. Co.), Ser. A, 6.25%, 6/1/39 A 700,000 741,321
9,181,994
Louisiana (0.6%)
LA State Pub. Fac. Auth. Rev. Bonds (Ochsner Clinic Foundation), 5.00%, 5/15/47 A3 250,000 273,415
LA State Pub. Fac. Solid Waste Disp. Auth. Rev. Bonds (LA Pellets, Inc.), Ser. A, 8.375%, 7/1/39 (In default)(NON) D/P 500,000 5,000
Pub. Fac. Auth. Rev. Bonds (Tulane U.), Ser. A, 4.00%, 12/15/50 A2 750,000 774,713
Pub. Fac. Auth. Dock & Wharf 144A Rev. Bonds (Impala Warehousing, LLC), 6.50%, 7/1/36 B+/P 1,000,000 1,117,990
St. Tammany, Public Trust Fin. Auth. Rev. Bonds (Christwood), 5.25%, 11/15/37 BB/P 385,000 412,620
2,583,738
Maine (0.6%)
ME Hlth. & Higher Edl. Fac. Auth. Rev. Bonds
(ME Gen. Med. Ctr.), 7.50%, 7/1/32 Ba3 1,000,000 1,124,190
(MaineGeneral Health Oblig. Group), 6.95%, 7/1/41 Ba3 1,000,000 1,103,290
ME State Fin. Auth. Solid Waste Disp. 144A Mandatory Put Bonds (8/1/25) (Casella Waste Syst.), 5.125%, 8/1/35 Caa1 500,000 511,395
2,738,875
Maryland (1.4%)
Baltimore Cnty., Rev. Bonds (Oak Crest Village, Inc.), 5.00%, 1/1/37 A/F 1,585,000 1,788,942
Frederick Cnty., Edl. Fac. 144A Rev. Bonds (Mount St. Mary's U.), Ser. A, 5.00%, 9/1/37 BB+ 500,000 534,930
MD Econ. Dev. Corp. Poll. Control Rev. Bonds (Potomac Electric Power Co.), 6.20%, 9/1/22 A2 550,000 578,023
Prince Georges Cnty., Rev. Bonds (Collington Episcopal Life Care Cmnty., Inc.), 5.25%, 4/1/37 BB/P 1,200,000 1,284,576
Westminster, Rev. Bonds
(Lutheran Village at Miller's Grant, Inc. (The)), Ser. A, 6.00%, 7/1/34 B-/P 250,000 266,665
(Carroll Lutheran Village, Inc.), 5.125%, 7/1/34 BB/P 1,500,000 1,615,680
6,068,816
Massachusetts (4.1%)
MA State G.O. Bonds (Cons. Loan), Ser. A, 5.00%, 4/1/36 Aa1 2,000,000 2,327,040
MA State Dev. Fin. Agcy. Rev. Bonds
(Sabis Intl.), Ser. A, 8.00%, 4/15/39 (Prerefunded 10/15/19) BBB 690,000 763,740
(Linden Ponds, Inc. Fac.), Ser. A-1, 6.25%, 11/15/46 B-/P 450,850 469,100
(Suffolk U.), Ser. A, 6.25%, 7/1/30 Baa2 360,000 379,868
(Suffolk U.), Ser. A, U.S. Govt. Coll., 6.25%, 7/1/30 (Prerefunded 7/1/19) AAA/P 640,000 682,547
(Linden Ponds, Inc. Fac.), Ser. A-1, 6.25%, 11/15/26 B-/P 275,400 286,592
(Loomis Cmntys.), Ser. A, 6.00%, 1/1/33 BBB- 200,000 228,298
(Suffolk U.), Ser. A, 5.75%, 7/1/39 Baa2 320,000 333,942
(Suffolk U.), Ser. A, U.S. Govt. Coll., 5.75%, 7/1/39 (Prerefunded 7/1/19) AAA/P 630,000 667,491
(Linden Ponds, Inc.), Ser. A-2 , 5.50%, 11/15/46 B-/P 88,265 88,290
(New England Conservatory of Music), U.S. Govt. Coll., 5.25%, 7/1/38 (Prerefunded 7/1/18) AAA/P 805,000 817,526
(Wheelock College), Ser. C, 5.25%, 10/1/29 BBB 1,700,000 1,700,204
(Suffolk U.), 5.00%, 7/1/36 Baa2 750,000 843,383
(Suffolk U.), 5.00%, 7/1/35 Baa2 750,000 844,673
(First Mtge. - Orchard Cove), 5.00%, 10/1/19 BB/P 550,000 551,287
(Linden Ponds, Inc.), Ser. B, zero %, 11/15/56 B-/P 439,022 27,623
MA State Dev. Fin. Agcy. Hlth. Care Fac. 144A Rev. Bonds (Adventcare), Ser. A, 6.65%, 10/15/28 B/P 1,050,000 1,052,163
MA State Hlth. & Edl. Fac. Auth. Rev. Bonds
(Springfield College), 5.625%, 10/15/40 (Prerefunded 10/15/19) BBB 450,000 481,397
(Springfield College), 5.50%, 10/15/31 (Prerefunded 10/15/19) BBB 1,100,000 1,174,448
(Springfield College), 5.50%, 10/15/26 (Prerefunded 10/15/19) BBB 1,500,000 1,601,520
(Milford Regl. Med.), Ser. E, 5.00%, 7/15/22 BBB- 1,000,000 1,002,890
MA State Port Auth. Special Fac. Rev. Bonds (Conrac), Ser. A, 5.125%, 7/1/41 A 750,000 813,255
17,137,277
Michigan (5.9%)
Detroit, Wtr. Supply Syst. Rev. Bonds, Ser. B, AGM, 6.25%, 7/1/36 AA 5,000 5,304
Flint, Hosp. Bldg. Auth. Rev. Bonds, Ser. A, 5.25%, 7/1/39 Ba1 750,000 772,013
Genesee Cnty., Wtr. Supply Syst. G.O. Bonds (Wtr. Supply Syst.), Ser. B, BAM, 5.00%, 2/1/46 AA 1,500,000 1,670,145
Great Lakes, Wtr. Auth. Swr. Rev. Bonds (Brazos Presbyterian Homes, Inc.), Ser. C, 5.00%, 7/1/36 Baa1 2,000,000 2,210,820
Kentwood, Economic Dev. Rev. Bonds (Holland Home), 5.625%, 11/15/32 BBB-/F 2,195,000 2,385,394
MI State Fin. Auth. Rev. Bonds
(Local Govt. Loan Program - Detroit Wtr. & Swr. Dept. (DWSD)), Ser. D-2, 5.00%, 7/1/34 Baa1 400,000 441,344
(Detroit Wtr. & Swr.), Ser. C-6, 5.00%, 7/1/33 A3 600,000 665,094
MI State Fin. Auth. Ltd. Oblig. Rev. Bonds (Lawrence Technological U.), 5.00%, 2/1/47 BB+ 2,150,000 2,307,767
MI State Hosp. Fin. Auth. Rev. Bonds (Trinity Hlth. Credit Group), Ser. A, 5%, 12/1/47(T) AA- 8,500,000 9,231,710
MI State Strategic Fund Ltd. Rev. Bonds (Worthington Armstrong Venture), 5.75%, 10/1/22 (Escrowed to maturity) AAA/P 1,350,000 1,560,641
MI State Strategic Fund Ltd. Oblig. Rev. Bonds (Cadillac Place Office Bldg.), 5.25%, 10/15/26 Aa2 1,250,000 1,400,438
Wayne Cnty., Arpt. Auth. Rev. Bonds, Ser. A, 5.00%, 12/1/21 A2 2,000,000 2,213,900
24,864,570
Minnesota (1.6%)
Baytown Twp. Lease Rev. Bonds, Ser. A, 4.00%, 8/1/41 BB+ 380,000 353,662
Ham Lake, Charter School Lease Rev. Bonds (DaVinci Academy of Arts & Science), Ser. A, 5.00%, 7/1/47 BB-/P 500,000 493,150
Otsego, Charter School Lease Rev. Bonds (Kaleidoscope Charter School), Ser. A, 5.00%, 9/1/34 BB+ 800,000 819,784
Rochester, Hlth. Care Fac. Rev. Bonds (Olmsted Med. Ctr.), 5.875%, 7/1/30 A/F 1,000,000 1,082,060
Rochester, Hlth. Care Fac. VRDN (Mayo Clinic), Ser. B, 1.10%, 11/15/38 VMIG1 1,050,000 1,050,000
Sartell, Hlth. Care & Hsg. Facs. Rev. Bonds (Country Manor Campus, LLC)
5.25%, 9/1/30 B-/P 500,000 542,225
5.25%, 9/1/27 B-/P 750,000 822,038
St. Paul, Hsg. & Redev. Auth. Charter School Lease Rev. Bonds (Nova Classical Academy), Ser. A
6.625%, 9/1/42 (Prerefunded 9/1/21) BBB- 250,000 292,115
6.375%, 9/1/31 BBB- 250,000 278,435
St. Paul, Port Auth. Lease Rev. Bonds (Regions Hosp. Pkg. Ramp), Ser. 1, 5.00%, 8/1/36 A-/P 1,125,000 1,127,059
6,860,528
Mississippi (0.4%)
Warren Cnty., Gulf Opportunity Zone Rev. Bonds (Intl. Paper Co.), Ser. A, 6.50%, 9/1/32 Baa2 1,600,000 1,647,088
1,647,088
Missouri (0.8%)
Cape Girardeau Cnty., Indl. Dev. Auth. Rev. Bonds (SoutheastHEALTH Oblig. Group), Ser. A, 5.00%, 3/1/36 Baa3 1,215,000 1,324,095
Saint Louis, Indl. Dev. Auth. Fin. Rev. Bonds (Ballpark Village Dev.), Ser. A, 4.75%, 11/15/47 BB-/P 875,000 901,548
St. Louis Arpt. Rev. Bonds (Lambert-St. Louis Intl.), Ser. A-1, 6.625%, 7/1/34 A3 1,000,000 1,066,750
3,292,393
Nebraska (0.3%)
Lancaster Cnty., Hosp. Auth. Rev. Bonds (Immanuel Oblig. Group), 5.50%, 1/1/30 AA/F 1,000,000 1,063,280
1,063,280
Nevada (0.8%)
Clark Cnty., Arpt. Rev. Bonds, Ser. A-2, 5.00%, 7/1/33 Aa3 1,050,000 1,193,976
Clark Cnty., Impt. Dist. Special Assmt. Bonds (Mountains Edge Local No. 142), 5.00%, 8/1/21 BBB 500,000 534,510
Clark Cnty., Impt. Dist. No. 159 Special Assessment Bonds (Summerlin Village 16A), 5.00%, 8/1/32 B+/P 490,000 513,706
Las Vegas, Special Assmt. Bonds
5.00%, 6/1/31 B+/P 420,000 434,003
(Dist. No. 607 Local Impt.), 5.00%, 6/1/23 BBB-/P 365,000 394,715
Las Vegas, Impt. Dist. No. 812 Special Assessment Bonds (Summerlin Village 24), 5.00%, 12/1/35 B/P 250,000 256,168
3,327,078
New Hampshire (3.4%)
NH State Bus. Fin. Auth. Rev. Bonds (Elliot Hosp. Oblig. Group), Ser. A, 6.00%, 10/1/27 (Prerefunded 10/1/19) Baa1 1,700,000 1,823,454
NH State Bus. Fin. Auth. Solid Waste Disp. 144A Mandatory Put Bonds (10/1/19) (Casella Waste Syst., Inc.), 4.00%, 4/1/29 Caa1 350,000 349,482
NH State Hlth. & Ed. Fac. Auth. Rev. Bonds
(Rivermead), Ser. A, 6.875%, 7/1/41 BB+/P 2,000,000 2,185,700
(Rivermead), Ser. A, 6.625%, 7/1/31 BB+/P 1,320,000 1,450,706
(Catholic Med. Ctr.), 5.00%, 7/1/44 A- 1,000,000 1,119,390
(Concord Hosp. Trust), 5.00%, 10/1/42 A2 3,250,000 3,601,650
(Kendel at Hanover), 5.00%, 10/1/40 BBB+/F 585,000 629,665
(Elliot Hosp.), 5.00%, 10/1/38 Baa1 250,000 273,113
(Southern NH Med. Ctr.), 5.00%, 10/1/37 A- 1,000,000 1,101,960
NH State Hlth. & Ed. Fac. Auth. VRDN (U. Syst. of NH), Ser. B, 0.95%, 7/1/33 VMIG1 910,000 910,000
NH State Hlth. & Ed. Fac. Auth. 144A Rev. Bonds (Hillside Village), Ser. A, 6.25%, 7/1/42 B-/P 750,000 806,835
14,251,955
New Jersey (10.1%)
Atlantic City, G.O. Bonds (Tax Appeal), Ser. B, AGM, 4.00%, 3/1/42 AA 1,250,000 1,278,663
Burlington Cnty., Bridge Comm. Econ. Dev. Rev. Bonds (The Evergreens), 5.625%, 1/1/38 BB+/P 1,500,000 1,400,415
NJ State Econ. Dev. Auth. Rev. Bonds
(Ashland School, Inc.), 6.00%, 10/1/33 BBB 1,000,000 1,120,840
(NYNJ Link Borrower, LLC), 5.375%, 1/1/43 BBB- 1,000,000 1,110,630
(MSU Student Hsg. - Provident Group - Montclair LLC), 5.375%, 6/1/25 (Prerefunded 6/1/20) Aaa 2,000,000 2,166,720
(Continental Airlines, Inc.), 5.25%, 9/15/29 Ba3 3,000,000 3,285,750
(North Star Academy Charter School of Newark, Inc.), 5.00%, 7/15/47 BBB- 1,000,000 1,077,230
Ser. AAA, 5.00%, 6/15/36 Baa1 350,000 376,985
(United Methodist Homes), Ser. A, 5.00%, 7/1/29 BBB-/F 500,000 540,950
Ser. B, 5.00%, 11/1/26 Baa1 3,000,000 3,336,390
5.00%, 6/15/26 Baa1 500,000 543,000
NJ State Econ. Dev. Auth. Fac. Rev. Bonds (Continental Airlines, Inc.), 5.625%, 11/15/30 Ba3 1,500,000 1,705,950
NJ State Econ. Dev. Auth. Special Fac. Rev. Bonds (Port Newark Container Term., LLC), 5.00%, 10/1/37 Ba1 1,500,000 1,635,495
NJ State Econ. Dev. Auth. Wtr. Fac. Rev. Bonds (NJ American Wtr. Co.)
Ser. A, 5.70%, 10/1/39 A1 2,600,000 2,746,900
Ser. D, 4.875%, 11/1/29 A1 700,000 743,274
NJ State Hlth. Care Fac. Fin. Auth. Rev. Bonds
(St. Peter's U. Hosp.), 6.25%, 7/1/35 Ba1 2,000,000 2,160,600
(St. Joseph's Healthcare Syst. Oblig. Group), 5.00%, 7/1/41 Baa3 835,000 900,940
NJ State Trans. Trust Fund Auth. Rev. Bonds (Federal Hwy. Reimbursement Notes)
5.00%, 6/15/29 A+ 1,050,000 1,161,762
5.00%, 6/15/28 A+ 600,000 667,542
North Hudson, Swr. Auth. Rev. Bonds, Ser. A, 5.00%, 6/1/42 A 1,000,000 1,090,380
South Jersey, Port Corp. Rev. Bonds (Marine Term.), Ser. B, 5.00%, 1/1/42 Baa1 1,000,000 1,071,840
Tobacco Settlement Fin. Corp. Rev. Bonds
Ser. 1A, 5.00%, 6/1/41 B 7,500,000 7,423,050
Ser. 1A, 4.75%, 6/1/34 BB- 2,210,000 2,180,231
zero %, 6/1/41 A- 4,180,000 1,166,262
Union Cnty., Util. Auth. Resource Recvy. Fac. Lease Rev. Bonds (Covanta Union), Ser. A, 5.25%, 12/1/31 AA+ 1,450,000 1,613,821
42,505,620
New Mexico (0.6%)
Farmington, Poll. Control Rev. Bonds
(Public Service Co. of San Juan, NM), Ser. D, 5.90%, 6/1/40 BBB+ 500,000 539,770
(AZ Pub. Svc. Co.), Ser. B, 4.70%, 9/1/24 A2 2,000,000 2,140,060
2,679,830
New York (9.3%)
Broome Cnty., Indl. Dev. Agcy. Continuing Care Retirement Rev. Bonds (Good Shepard Village), Ser. A, 6.75%, 7/1/28 (Prerefunded 7/1/18) AAA/P 600,000 612,858
Glen Cove, Local Econ. Assistance Corp. Rev. Bonds (Garvies Point Pub. Impt.), Ser. C, stepped-coupon zero% (5.625%, 1/1/24), 1/1/55(STP) B/P 300,000 246,585
Metro. Trans. Auth. Rev. Bonds (Green Bonds), Ser. C-1, 4.00%, 11/15/32 AA- 3,500,000 3,730,965
Metro. Trans. Auth. Dedicated Tax Fund Mandatory Put Bonds (6/1/22), Ser. A-2A, 1.53%, 11/1/26 AA 2,955,000 2,952,666
NY City, G.O. Bonds, Ser. B-1, 5.00%, 10/1/38 Aa2 2,000,000 2,329,680
NY Counties, Tobacco Trust VI Rev. Bonds (Tobacco Settlement), 5.00%, 6/1/51 BBB 1,700,000 1,776,432
NY State Convention Ctr. Dev. Corp. Rev. Bonds (Hotel Unit Fee), zero %, 11/15/50 Aa3 2,500,000 677,975
NY State Dorm. Auth. Non-State Supported Debt Rev. Bonds
(NY U.), Ser. A, 5.00%, 7/1/40 Aa2 1,000,000 1,163,840
(NY U.), Ser. A, 5.00%, 7/1/39 Aa2 1,000,000 1,164,730
(NYU Hosp. Ctr.), 5.00%, 7/1/34 A3 500,000 565,100
NY State Dorm. Auth. Revs. bonds, Ser. C, 5.00%, 3/15/31(T) AAA 5,000,000 5,469,713
NY State Dorm. Auth. Rev. Bonds, Ser. A Group C, 5.00%, 3/15/42(T) AAA 10,834,368 12,561,763
NY State Env. Fac. Corp. Solid Waste Disp. 144A Mandatory Put Bonds (12/2/19) (Casella Waste Syst., Inc.), 3.75%, 12/1/44 Caa1 1,000,000 998,590
NY State Liberty Dev. Corp. 144A Rev. Bonds (World Trade Ctr.)
Class 2, 5.375%, 11/15/40 BB-/P 750,000 824,265
Class 1-3, 5.00%, 11/15/44 BB-/P 1,250,000 1,345,113
Onondaga, Civic Dev. Corp. Rev. Bonds (St. Joseph's Hosp. Hlth. Ctr.), U.S. Govt. Coll., 5.125%, 7/1/31 (Prerefunded 7/1/19) AAA/P 1,620,000 1,702,993
Port Auth. of NY & NJ Rev. Bonds (Kennedy Intl. Arpt. - 5th Installment), 6.75%, 10/1/19 BBB-/P 100,000 104,945
Port Auth. of NY & NJ Special Oblig. Rev. Bonds (JFK Intl. Air Term.), 6.00%, 12/1/42 Baa1 1,000,000 1,105,430
39,333,643
North Carolina (2.1%)
NC Eastern Muni. Pwr. Agcy. Syst. Rev. Bonds, Ser. C, 6.75%, 1/1/24 (Prerefunded 1/1/19) AAA/F 750,000 786,578
NC State Med. Care Comm. Hlth. Fac. Rev. Bonds (Presbyterian Homes), Ser. C, 5.00%, 10/1/31 A-/F 800,000 905,440
NC State Med. Care Comm. Retirement Fac. Rev. Bonds
(Carolina Village), 6.00%, 4/1/38 (Prerefunded 4/1/18) BB/P 1,000,000 1,007,630
(Salemtowne), 5.375%, 10/1/45 BB/P 1,615,000 1,704,568
(Salemtowne), 5.25%, 10/1/37 BB/P 385,000 407,353
(Aldersgate United Methodist Retirement Cmnty., Inc.), Ser. A, 5.00%, 7/1/47 BB/P 400,000 428,836
(Aldersgate United Methodist Church), 5.00%, 7/1/45 BB/P 825,000 874,731
(Southminister, Inc.), 5.00%, 10/1/37 BB/P 965,000 1,041,640
(United Methodist Retirement Homes), Ser. A, 5.00%, 10/1/37 BBB/F 500,000 549,985
(United Church Homes & Svcs. Oblig. Group), Ser. A, 5.00%, 9/1/37 BB/P 500,000 535,830
(United Methodist Retirement Homes), Ser. A, 5.00%, 10/1/35 BBB/F 500,000 556,800
8,799,391
Ohio (5.4%)
Buckeye, Tobacco Settlement Fin. Auth. Rev. Bonds
Ser. A-2, 6.50%, 6/1/47 B3 4,000,000 3,999,720
Ser. A-3, 6.25%, 6/1/37 B- 850,000 846,133
Ser. A-2, 6.00%, 6/1/42 B3 4,000,000 3,910,080
Ser. A-2, 5.875%, 6/1/47 B3 1,750,000 1,700,073
Ser. A-2, 5.75%, 6/1/34 B- 5,175,000 4,968,000
Franklin Cnty., Hlth. Care Fac. Rev. Bonds (OH Presbyterian Retirement Svcs. (OPRS) Cmntys. Oblig. Group), Ser. A, 5.625%, 7/1/26 BBB/F 1,250,000 1,325,825
Lake Cnty., Hosp. Fac. Rev. Bonds (Lake Hosp. Syst., Inc.), Ser. C
5.625%, 8/15/29 A3 245,000 249,910
U.S. Govt. Coll., 5.625%, 8/15/29 (Prerefunded 8/15/18) AAA/P 1,285,000 1,314,234
OH State Air Quality Dev. Auth. Exempt Fac. 144A Rev. Bonds (Pratt Paper, LLC), 4.50%, 1/15/48 BB+/P 1,200,000 1,237,896
OH State Higher Edl. Fac. Comm. Rev. Bonds (Kenyon College)
5.00%, 7/1/44 A 525,000 552,521
U.S. Govt. Coll., 5.00%, 7/1/44 (Prerefunded 7/1/20) AAA/P 275,000 296,643
OH State Private Activity Rev. Bonds (Portsmouth Bypass), AGM, 5.00%, 12/31/35 AA 750,000 835,283
Southeastern OH Port Auth. Hosp. Fac. Rev. Bonds
5.75%, 12/1/32 BB-/F 900,000 979,218
(Memorial Hlth. Syst. Oblig. Group), 5.00%, 12/1/43 BB-/F 150,000 155,877
Toledo-Lucas Cnty., Port Auth. Rev. Bonds (CSX Transn, Inc.), 6.45%, 12/15/21 Baa1 500,000 577,990
22,949,403
Oklahoma (0.7%)
Tulsa Cnty., Indl. Auth. Rev. Bonds (Sr. Living Cmnty. Montereau, Inc.), Ser. A, 7.125%, 11/1/30 (Prerefunded 5/1/20) BB-/P 1,250,000 1,397,075
Tulsa, Muni. Arpt. Trust Rev. Bonds (American Airlines, Inc.), Ser. B, 5.50%, 12/1/35 B+/P 1,250,000 1,354,100
2,751,175
Oregon (0.5%)
Multnomah Cnty., Hosp. Fac. Auth. Rev. Bonds
(Mirabella at South Waterfront), Ser. A, 5.40%, 10/1/44 BB-/P 500,000 536,335
(Terwilliger Plaza, Inc.), 5.00%, 12/1/29 BBB/F 350,000 380,261
Warm Springs Reservation, Confederated Tribes 144A Rev. Bonds (Pelton Round Butte Tribal), Ser. B, 6.375%, 11/1/33 A3 700,000 737,919
Yamhill Cnty., Hosp. Auth. Rev. Bonds (Friendsview Retirement Cmnty.), Ser. A, 5.00%, 11/15/36 BB/P 325,000 350,916
2,005,431
Pennsylvania (4.7%)
Allegheny Cnty., Higher Ed. Bldg. Auth. Rev. Bonds
(Robert Morris U.), Ser. A, 5.50%, 10/15/30 Baa3 1,000,000 1,068,150
(Robert Morris U.-UPMC Events Ctr.), 5.00%, 10/15/47 Baa3 1,190,000 1,294,839
Chester Cnty., Hlth. & Ed. Fac. Auth. Rev. Bonds (Immaculata U.)
5.00%, 11/1/46 BB/F 1,000,000 990,880
5.00%, 11/1/41 BB/F 500,000 499,270
Chester Cnty., Indl. Dev. Auth. Rev. Bonds
(Collegium Charter School), Ser. A, 5.125%, 10/15/37 BB+ 750,000 774,210
(Renaissance Academy Charter School), 5.00%, 10/1/34 BBB- 350,000 374,290
Chester Cnty., Indl. Dev. Auth. Student Hsg. Rev. Bonds (West Chester U. Student Hsg., LLC), Ser. A, 5.00%, 8/1/45 Baa3 1,000,000 1,053,960
Dauphin Cnty., Gen. Auth. Hlth. Syst. Rev. Bonds (Pinnacle Hlth. Syst.), Ser. A, 5.00%, 6/1/34 A1 250,000 284,038
Geisinger, Auth. Rev. Bonds (Geisinger Hlth. Syst.), Ser. A-1, 5.00%, 2/15/45 Aa2 2,500,000 2,821,375
Lycoming Cnty., Auth. Hlth. Syst. Rev. Bonds (Susquehanna Hlth. Syst.), Ser. A, 5.75%, 7/1/39 A+ 3,000,000 3,165,933
Moon, Indl. Dev. Auth. Rev. Bonds (Baptist Homes Society Oblig. Group), 5.75%, 7/1/35 B+/P 1,500,000 1,609,215
PA State Higher Edl. Fac. Auth. Rev. Bonds
(Shippensburg U.), 6.25%, 10/1/43 Baa3 500,000 552,735
(Gwynedd Mercy College), Ser. KK1, 5.375%, 5/1/42 BBB 785,000 819,556
PA State Tpk. Comm. Rev. Bonds
Ser. B-1, 5.00%, 6/1/42 A3 900,000 1,001,331
Ser. A, 5.00%, 12/1/38 A1 500,000 563,630
Philadelphia, Auth. for Indl. Dev. Rev. Bonds (Master Charter School), 6.00%, 8/1/35 (Prerefunded 8/1/20) BBB 1,055,000 1,166,545
Philadelphia, Hosp. & Higher Edl. Fac. Auth. VRDN (Children's Hosp. of Philadelphia), Ser. B, 0.95%, 7/1/25 VMIG1 880,000 880,000
West Shore Area Auth. Rev. Bonds (Lifeways at Messiah Village), Ser. A, 5.00%, 7/1/35 BBB-/F 785,000 832,320
19,752,277
Puerto Rico (0.4%)
Cmnwlth. of PR, G.O. Bonds
Ser. A, FGIC, 5.50%, 7/1/21 (In default)(NON) D/P 1,000,000 775,000
(Pub. Impt.), Ser. A, NATL, 5.50%, 7/1/20 Baa2 1,000,000 1,006,450
1,781,450
Rhode Island (0.4%)
RI Hlth. & Edl. Bldg. Corp. Rev. Bonds (Lifespan Oblig. Group-Hosp. Fin.), 5.00%, 5/15/25 BBB+ 1,500,000 1,702,320
1,702,320
South Carolina (2.4%)
SC State Pub. Svcs. Auth. Rev. Bonds
(Santee Cooper), Ser. A, 5.75%, 12/1/43 A1 3,000,000 3,429,540
Ser. A, 5.50%, 12/1/54 A1 2,000,000 2,232,480
Ser. E, 5.25%, 12/1/55 A1 1,500,000 1,677,270
Ser. C, 5.00%, 12/1/46 A1 2,500,000 2,751,475
10,090,765
South Dakota (0.3%)
SD State Hlth. & Edl. Fac. Auth. Rev. Bonds (Sanford Oblig Group), 5.00%, 11/1/45 A1 1,250,000 1,385,150
1,385,150
Tennessee (0.4%)
Johnson City, Hlth. & Edl. Fac. Board Hosp. Rev. Bonds (Mountain States Hlth. Alliance), 6.00%, 7/1/38 Baa1 1,450,000 1,548,426
1,548,426
Texas (10.6%)
Arlington, Higher Ed. Fin. Corp. Rev. Bonds (Uplift Ed.), Ser. A, PSFG, 4.00%, 12/1/42 AAA 1,000,000 1,041,090
Central TX Regl. Mobility Auth. Rev. Bonds (Sr. Lien), Ser. A, 5.00%, 1/1/33 BBB+ 525,000 574,387
Clifton, Higher Ed. Fin. Corp. Rev. Bonds (Idea Pub. Schools)
6.00%, 8/15/33 BBB+ 500,000 574,060
5.00%, 8/15/32 BBB+ 315,000 333,705
5.00%, 8/15/28 BBB+ 200,000 230,284
Dallas-Fort Worth, Intl. Arpt. Rev. Bonds, Ser. A, 5.00%, 11/1/43 A1 2,535,000 2,702,158
Harris Cnty., Cultural Ed. Fac. Fin. Corp. Rev. Bonds
(Brazos Presbyterian Homes, Inc.), 5.00%, 1/1/37 BB+/F 250,000 257,973
(YMCA of the Greater Houston Area), Ser. A, 5.00%, 6/1/33 Baa3 1,000,000 1,065,310
Houston, Arpt. Syst. Rev. Bonds
Ser. B-1, 5.00%, 7/15/35 BB- 2,500,000 2,730,375
Ser. B-1, 5.00%, 7/15/30 BB- 650,000 720,207
Ser. A, 5.00%, 7/1/24 A+ 1,500,000 1,639,965
La Vernia, Higher Ed. Fin. Corp. Rev. Bonds (Kipp, Inc.), Ser. A
6.375%, 8/15/44 (Prerefunded 8/15/19) BBB 1,100,000 1,180,421
6.25%, 8/15/39 (Prerefunded 8/15/19) BBB 1,975,000 2,115,660
La Vernia, Higher Ed. Fin. Corp. 144A Rev. Bonds (Meridian World School, LLC), Ser. A, 5.25%, 8/15/35 BB+ 1,000,000 1,031,190
Love Field, Arpt. Modernization Corp. Special Fac. Rev. Bonds (Southwest Airlines Co.), 5.25%, 11/1/40 A3 3,500,000 3,763,550
Matagorda Cnty., Poll. Control Rev. Bonds
(Central Pwr. & Light Co.), Ser. A, 6.30%, 11/1/29 A- 1,000,000 1,078,050
(Dist. No. 1), Ser. A, AMBAC, 4.40%, 5/1/30 A- 1,250,000 1,394,225
New Caney Independent School District GO Bonds, 5%, 2/15/47(T) AAA/F 3,400,000 3,917,251
New Hope, Cultural Ed. Fac. Fin. Corp. Rev. Bonds
(Wesleyan Homes, Inc.), 5.50%, 1/1/43 BB-/P 500,000 535,535
(Collegiate Student Hsg. Island Campus, LLC), Ser. A, 5.00%, 4/1/42 Baa3 2,830,000 3,102,076
(Collegiate Hsg.-Tarleton St.), 5.00%, 4/1/39 Baa3 500,000 536,080
(Longhorn Village), 5.00%, 1/1/37 BB-/P 500,000 531,765
(MRC Crestview), 5.00%, 11/15/36 BB+/F 200,000 209,098
North Texas Edl. Fin. Co. Rev. Bonds (Uplift Edl.), Ser. A, 5.25%, 12/1/47 BBB- 2,000,000 2,108,960
Red River, Hlth. Retirement Fac. Dev. Corp. Rev. Bonds
(Happy Harbor Methodist Home, Inc.), Ser. A, 7.75%, 11/15/44 B-/P 420,000 485,990
(Sears Methodist Retirement Syst. Oblig. Group), Ser. C, 6.25%, 5/9/53 (In default)(NON) D/P 39,000 55
(Sears Methodist Retirement Syst. Oblig. Group), Ser. B, 6.15%, 11/15/49 (In default)(NON) D/P 749,000 1,049
(Sears Methodist Retirement Syst. Oblig. Group), Ser. A, 6.05%, 11/15/46 (In default)(NON) D/P 441,000 617
(Sears Methodist Retirement Syst. Oblig. Group), Ser. D, 6.05%, 11/15/46 (In default)(NON) D/P 76,000 106
(Sears Methodist Retirement Syst. Oblig. Group), Ser. A, 5.45%, 11/15/38 (In default)(NON) D/P 1,124,000 1,574
(Sears Methodist Retirement Syst. Oblig. Group), Ser. A, 5.15%, 11/15/27 (In default)(NON) D/P 593,000 830
Tarrant Cnty., Cultural Ed. Fac. Fin. Corp. Retirement Fac. Rev. Bonds
(Buckner Sr. Living Ventana), Ser. A, 6.75%, 11/15/47 B-/P 875,000 975,170
(Buckingham Sr. Living Cmnty., Inc.), Ser. A, 5.50%, 11/15/45 BB/F 1,000,000 1,018,920
TX Private Activity Surface Trans. Corp. Rev. Bonds
(NTE Mobility), 7.50%, 12/31/31 Baa2 2,000,000 2,205,480
(LBJ Infrastructure), 7.00%, 6/30/40 Baa3 2,500,000 2,777,725
TX State Dept. of Hsg. & Cmnty. Affairs Rev. Bonds, Ser. C, GNMA Coll., FNMA Coll., FHLMC Coll., 6.90%, 7/2/24 AA+ 50,000 51,095
TX State Muni. Gas Acquisition & Supply Corp. III Rev. Bonds, 5.00%, 12/15/28 A3 1,500,000 1,654,230
TX State Private Activity Bond Surface Trans. Corp. Rev. Bonds (Blueridge Trans. Group, LLC (SH 288 Toll Lane))
5.00%, 12/31/55 Baa3 500,000 547,095
5.00%, 12/31/50 Baa3 750,000 823,350
Uptown Dev. Auth. Tax Alloc. Bonds, Ser. A, 5.00%, 9/1/40 BBB 700,000 778,323
44,694,984
Utah (0.4%)
Murray City, Hosp. VRDN (IHC Hlth. Svcs., Inc.), Ser. C, 0.90%, 5/15/36 A-1+ 500,000 500,000
Salt Lake City, Arpt. Rev. Bonds, Ser. A, 5.00%, 7/1/36 A+ 1,000,000 1,140,920
1,640,920
Virginia (3.1%)
Cherry Hill Cmnty., Dev. Auth. 144A Special Assmt. Bonds (Potomac Shores), 5.40%, 3/1/45 B/P 1,000,000 1,028,360
Henrico Cnty., Econ. Dev. Auth. Res. Care Fac. Rev. Bonds (United Methodist Homes), 5.00%, 6/1/22 BB+/P 625,000 678,825
Lexington, Indl. Dev. Auth. Res. Care Fac. Rev. Bonds (Kendal at Lexington), 4.00%, 1/1/31 BBB-/F 675,000 698,544
Lower Magnolia Green Cmnty., Dev. Auth. 144A Special Assmt. Bonds, 5.00%, 3/1/35 B/P 485,000 496,005
Small Bus. Fin. Auth. Private Activity Rev. Bonds (Transform 66 P3), 5.00%, 12/31/52 Baa3 3,250,000 3,593,980
Suffolk, Econ. Dev. Auth. Retirement Fac. Rev. Bonds (United Church Homes & Svcs. Oblig. Group), 5.00%, 9/1/31 BB/P 500,000 541,825
VA State Cmnwlth. U. Hlth. Syst. Auth. Rev. Bonds, Ser. B, 4.00%, 7/1/40 Aa3 2,000,000 2,069,820
VA State Small Bus. Fin. Auth. Rev. Bonds
(Elizabeth River Crossings OPCO, LLC), 6.00%, 1/1/37 BBB 740,000 836,341
(Express Lanes, LLC), 5.00%, 7/1/34 BBB 1,150,000 1,237,837
Washington Cnty., Indl. Dev. Auth. Hosp. Fac. Rev. Bonds (Mountain States Hlth. Alliance), Ser. C, 7.75%, 7/1/38 Baa1 1,700,000 1,785,799
12,967,336
Washington (4.9%)
Port of Seattle, Rev. Bonds, Ser. C, 5.00%, 4/1/40 A1 625,000 694,781
Port Seattle, Port Indl. Dev. Corp. Rev. Bonds (Delta Airlines, Inc.), 5.00%, 4/1/30 BBB- 800,000 878,784
Skagit Cnty., Pub. Hosp. Rev. Bonds (Dist. No. 001), 5.75%, 12/1/35 Baa2 2,500,000 2,663,400
WA State G.O. Bonds (Sr. 520 Corridor-Motor Vehicle Tax), Ser. C, 5.00%, 6/1/28(T) AA+ 5,000,000 5,505,250
Tobacco Settlement Auth. of WA Rev. Bonds, 5.25%, 6/1/32 A- 1,275,000 1,380,392
WA State Hlth. Care Fac. Auth. FRN Mandatory Put Bonds (7/1/22) (Fred Hutchinson Cancer Research Ctr.), Ser. B, 2.146%, 1/1/42 A 1,700,000 1,714,042
WA State Hlth. Care Fac. Auth. Rev. Bonds
(WA Hlth. Svcs.), 7.00%, 7/1/39 (Prerefunded 7/1/19) Baa1 1,000,000 1,074,000
(Overlake Hosp. Med. Ctr.), Ser. A, 5.00%, 7/1/36 A2 2,145,000 2,425,931
(Central WA Hlth. Svcs. Assn.), 4.00%, 7/1/36 Baa1 810,000 813,078
WA State Hsg. Fin. Comm. Rev. Bonds (Wesley Homes Lea Hill), 5.00%, 7/1/41 B/P 500,000 513,100
WA State Hsg. Fin. Comm. 144A Rev. Bonds
(Heron's Key Oblig. Group), Ser. A, 7.00%, 7/1/50 B-/P 500,000 536,015
(Bayview Manor Homes), Ser. A, 5.00%, 7/1/46 BB+/P 1,230,000 1,258,782
(Presbyterian Retirement Cmnty. Northwest), Ser. A, 5.00%, 1/1/36 BB+/F 1,175,000 1,253,255
20,710,810
West Virginia (0.2%)
WV State Hosp. Fin. Auth. Rev. Bonds (Thomas Hlth. Syst.), 6.75%, 10/1/43 B+/P 735,000 744,820
744,820
Wisconsin (2.1%)
Pub. Fin. Auth. Rev. Bonds (Denver Intl. Arpt. Great Hall), 5.00%, 9/30/37 BBB- 500,000 558,400
Pub. Fin. Auth. Arpt. Fac. Rev. Bonds (Sr. Oblig. Group), 5.25%, 7/1/28 BBB 350,000 382,018
Pub. Fin. Auth. Exempt Fac. Rev. Bonds (Celanese U.S. Holdings, LLC), Ser. C, 4.30%, 11/1/30 Baa3 300,000 308,379
Pub. Fin. Auth. Higher Ed. Fac. Rev. Bonds (Gannon U.)
5.00%, 5/1/47 BBB+ 250,000 267,355
5.00%, 5/1/42 BBB+ 1,090,000 1,172,622
WI State Hlth. & Edl. Fac. Auth. Rev. Bonds
(St. Johns Cmntys. Inc.), Ser. A, 7.625%, 9/15/39 (Prerefunded 9/15/19) AAA/F 1,350,000 1,482,921
(Prohealth Care, Inc.), 6.625%, 2/15/39 (Prerefunded 2/15/19) AAA/P 1,250,000 1,316,675
(St. John's Cmnty., Inc.), Ser. B, 5.00%, 9/15/45 BBB+/F 250,000 265,200
WI State Pub. Fin. Auth Sr. Living Rev. Bonds (Rose Villa, Inc.), Ser. A, 5.75%, 11/15/44 BB-/P 1,800,000 1,942,182
WI State Pub. Fin. Auth Sr. Living 144A Rev. Bonds (Mary's Woods at Marylhurst), Ser. A, 5.25%, 5/15/37 BB/F 380,000 414,428
WI State Pub. Fin. Auth. 144A Rev. Bonds (Church Home of Hartford, Inc.), Ser. A, 5.00%, 9/1/30 BB/F 945,000 994,140
9,104,320
TOTAL INVESTMENTS
Total investments (cost $517,342,791) $543,129,645













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, 2017 through January 31, 2018 (the reporting period). Within the following notes to the portfolio, references to "Putnam Management" represent Putnam Investment Management, LLC, the fund's manager, an indirect wholly-owned subsidiary of Putnam Investments, LLC, 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 $421,923,261.
(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.
(NON) This security is non-income-producing.
(STP) The interest rate and date shown parenthetically represent the new interest rate to be paid and the date the fund will begin accruing interest at this rate.
(F) This security is valued by Putnam Management at fair value following procedures approved by the Trustees. Securities are classified as Level 3 for ASC 820 based on the securities' valuation inputs.
(T) Underlying security in a tender option bond transaction. This security has been segregated as collateral for financing transactions.
At the close of the reporting period, the fund maintained liquid assets totaling $18,258,208 to cover tender option bonds.
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.
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):
Health care 30.8%
Transportation 15.4
Utilities 14.3
Education 13.7
Prerefunded 10.5
   
Security valuation: Portfolio securities and other investments are valued using policies and procedures adopted by the Board of Trustees. The Trustees have formed a Pricing Committee to oversee the implementation of these procedures and have delegated responsibility for valuing the fund's assets in accordance with these procedures to Putnam Management. Putnam Management has established an internal Valuation Committee that is responsible for making fair value determinations, evaluating the effectiveness of the pricing policies of the fund and reporting to the Pricing Committee.
Tax-exempt bonds and notes are generally valued on the basis of valuations provided by an independent pricing service approved by the Trustees. Such services use information with respect to transactions in bonds, quotations from bond dealers, market transactions in comparable securities and various relationships between securities in determining value. These securities will generally be categorized as Level 2.
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 $52,236,901 were held by the TOB trust and served as collateral for $33,978,690 in floating-rate bonds outstanding. During the reporting period, the fund incurred interest expense of $84,631 for these investments based on an average interest rate of 1.22%.












ASC 820 establishes a three-level hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of the fund's investments. The three levels are defined as follows:
Level 1: Valuations based on quoted prices for identical securities in active markets.
Level 2: Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.
Level 3: Valuations based on inputs that are unobservable and significant to the fair value measurement.
The following is a summary of the inputs used to value the fund's net assets as of the close of the reporting period:

 Valuation inputs
Investments in securities: Level 1 Level 2 Level 3
Municipal bonds and notes $— $543,117,045 $12,600
Totals by level $— $543,117,045 $12,600

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. Transfers are accounted for using the end of period pricing valuation method.
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 28, 2018

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 28, 2018

By (Signature and Title):
/s/ Janet C. Smith
Janet C. Smith
Principal Financial Officer
Date: March 28, 2018