Fixed Income

PSMEX Putnam Short-Term Municipal Income Fund

Tax-advantaged income. Pursues income free from federal income tax with a portfolio of municipal bonds selected from many states and market sectors.
Focus on total return. Seeks to offer a competitive yield and the potential for price appreciation while striving to protect investors' capital through prudent security selection and active risk management.
High-quality, short-term portfolio. The national portfolio features a range of high-quality, short-term bonds that seek to provide tax-free income with lower interest-rate sensitivity.

Overview

See the risks and other important information.

Fund Facts

Fund description

The fund seeks as high a level of current income exempt from federal income tax as the portfolio managers believe is consistent with preservation of capital by investing in a range of high-quality, short-term bonds with lower interest-rate sensitivity.

Fund Inception Date: N/A
Dividend Frequency, if any: N/A
Distribution Rate at NAV¹ (Updated Daily): —
30-Day SEC Yield—With Waiver^2,3,4As of 09/30/2025 (Updated Monthly): 2.72%
30-Day SEC Yield—Without Waiver^3,4As of 09/30/2025 (Updated Monthly): 2.64%
Taxable Equivalent Yield—With WaiverAs of 09/30/2025 (Updated Monthly): 4.59%
Taxable Equivalent Yield—Without WaiverAs of 09/30/2025 (Updated Monthly): 4.46%

Sales Charges, Expenses & Fees

Gross Expense Ratio⁵: N/A
Net Expense Ratio^5,6: N/A
Maximum Initial Charge: N/A
CDSC: N/A
12b-1 Fee: N/A

Identifiers

Ticker: N/A
Fund Number: N/A
CUSIP Code: N/A

Additional Fund Info

Share Class Inception Date: N/A
Investment Style: N/A
Lipper Classification: N/A
Morningstar Category⁷: Muni National Short

Manager and Commentary

About the Team

Franklin Templeton Fixed Income

A global leader in fixed income, the team strives to provide consistent and resilient returns by combining deep fundamental research with rigorous portfolio construction. This solutions-drives approach means maintaining portfolio and risk exposures that align with client expectations.

Commentary Highlights

March 31, 2025

Markets: The municipal (muni) bond market, as measured by the Bloomberg Municipal Bond Index, posted a slightly negative result for the first quarter of 2025 (Q1). January and February saw positive returns supported by healthy inflows of funds and steady demand, while returns posted in March reversed those gains.
Contributors: Security selection in AA rated bonds, security selection in AAA rated bonds, overweight allocations to BBB rated bonds and overweight allocation to bonds with no external credit rating.
Detractors: Overweight allocation to muni bonds with 10 or more years to maturity, underweight allocation to muni bonds with two years to maturity, security selection in A rated bonds and security selection in BBB rated bonds.
Outlook: Potential policy changes under US President Donald Trump’s administration, such as the possible elimination of tax exemptions for certain bonds and the cancellation of federal leases, are adding uncertainty to the muni market outlook, alongside broader concerns about how federal decisions may impact local economies.

Franklin Templeton Fixed Income

Latest Insights

January 26, 2026

European fixed income outlook—cautious optimism

January 20, 2026

The municipal bond market outlook: Continued stability—a good sign for investors

January 15, 2026

Flash Insights: Addressing US housing affordability—a targeted financing approach

January 8, 2026

Flash Insights: Notes on Venezuela

Distributions & Tax

Distribution Frequency
Ex-Dividend Fund: This type of fund declares periodic dividends, which are paid to shareholders who own the fund as of a certain date - known as the "record date". After the record date, the fund is said to be trading "ex-dividend"(literally, without the dividend). An investor who buys shares during the interval between the record date and the payment of the dividend does not receive the dividend. A fund that's in the ex-dividend period is marked with an "x" in newspaper listings.

Daily Accrual Fund: This type of fund typically declares income dividends each day that its net asset value is calculated. These dividends remain in the fund until the designated reinvestment or payment date and are distributed to the shareholders, generally once a month, as additional shares or cash, respectively.: MonthlyThis fund is an Accrual fund.
Capital Gain Distributions: December

Rates and Yields Read important information about results and other investment disclosures

Taxable Equivalent Distribution Rate

As of 10/24/2025 (Updated Monthly)

22.70%

Final composition of the current year’s distribution—income, capital gains and/or return of capital—are based on US tax rules and will be determined by February of the following year. For tax characterization of a distribution, such as return of capital and tax-exempt income, click on the “Tax Information” tab above.

Distributions Per Share
Distributions with future dates are estimates and those figures are not final

10/24/2025

09/30/2025

08/29/2025

07/31/2025

06/30/2025

05/30/2025

04/30/2025

03/31/2025

02/28/2025

01/31/2025

Documents

Regulatory Documents

Regulatory Documents
Checkbox	Name	Download
Checkbox	Annual Report - Putnam Short-Term Municipal Income Fund - Class AMailed hardcopies unavailable.	Download Document
Checkbox	Annual Financial Statements and Other Information - Putnam Short-Term Municipal Income FundMailed hardcopies unavailable.	Download Document
Checkbox	Semi-Annual Report - Putnam Short-Term Municipal Income Fund - Class AMailed hardcopies unavailable.	Download Document
Checkbox	Semi-Annual Financial Statements and Other Information - Putnam Short-Term Municipal Income FundMailed hardcopies unavailable.	Download Document
Checkbox	Prospectus - Putnam Short-Term Municipal Income FundMailed hardcopies unavailable.	Download Document
Checkbox	Summary Prospectus - Putnam Short-Term Municipal Income FundMailed hardcopies unavailable.	Download Document
Checkbox	Statement Of Additional Information - Putnam Funds TrustMailed hardcopies unavailable.	Download Document
Checkbox	Fiscal Q1 Holdings - Putnam Short-Term Municipal Income FundMailed hardcopies unavailable.	Download Document
Checkbox	Fiscal Q3 Holdings - Putnam Short-Term Municipal Income FundMailed hardcopies unavailable.	Download Document

Risks

All investments involve risks, including possible loss of principal. Fixed income securities involve interest rate, credit, inflation and reinvestment risks, and possible loss of principal. As interest rates rise, the value of fixed income securities falls. Active management does not ensure gains or protect against market declines. An investor may be subject to the federal Alternative Minimum Tax, and state and local taxes may apply. These and other risks are discussed in the fund's prospectus.

Important Information

Total Returns include change in share price, assume reinvestment of all distributions, and reflect the deduction of fund expenses and applicable fees. Total returns, distribution rate, and yields reflect any applicable expense reductions and fee waivers; without these reductions, the results would have been lower.

Most funds offer multiple share classes. Share classes are subject to different fees and expenses, which will affect their performance.

Certain share classes are only offered to eligible investors as stated in the prospectus. Different minimums may apply to clients of certain service agents. All classes of shares are not available through all distribution channels. See the Fund's prospectus for additional information.

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Important data provider notices and terms available at www.franklintempletondatasources.com.

Performance data quoted represents past performance, which does not guarantee future results.

CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Indexes are unmanaged and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges.

Investors should carefully consider a fund's investment goals, risks, sales charges and expenses before investing. The prospectus contains this and other information. Please read the prospectus carefully before investing or sending money.

Putnam funds are not exchangeable for other funds distributed by Franklin Distributors, LLC.

Franklin Distributors, LLC. Member FINRA/SIPC. Putnam Investment is a Franklin Templeton company. Investment Products: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE.

Reports and other information about the funds are available on the EDGAR Database on the SEC's Internet site at www.sec.gov.

Footnotes

Distribution Rate is calculated by annualizing the daily accrual, divided by the NAV as of the date indicated. The Distribution Rate calculation includes income and return of capital, and excludes special distributions. The Distribution Rate is not guaranteed, subject to change, and is not a quotation of fund performance.
With Waiver means the performance quote reflects any applicable expense reductions and fee waivers.
During periods of rising inflation, fund yields can vary significantly from month-to-month and may not be repeated.
30-Day SEC Yield is calculated using the net income (interest and dividends) per share earned over a trailing 30-day period (annualized), divided by the fund’s share price at the end of that period. It may not equal the fund’s actual income distribution rate, which reflects the fund’s past dividends paid to shareholders.
Gross Expense Ratio reflects the total annual operating expenses for the share class shown, prior to the deduction of any waiver or reimbursement. Actual expenses may be higher and may impact portfolio returns. Net Expense Ratio reflects total expenses after any fee waivers, implemented expense caps or reimbursements. If a fund has contractual fee waivers, expense caps and/or reimbursements, the expiration date can be found by clicking on the information button next to the net expense ratio. Additional amounts may be voluntarily waived and/or reimbursed and may be modified or discontinued at any time without notice. Expense ratios are as of the most recent prospectus or annual report.
Net Expense Ratio represents the expense ratio applicable to investors.
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