a_managedmuni.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: July 31, 2018



Item 1. Schedule of Investments:













Putnam Managed Municipal Income Trust

The fund's portfolio
7/31/18 (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
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 0.94% as of the close of the reporting period.
MUNICIPAL BONDS AND NOTES (131.9%)(a)
Rating(RAT) Principal amount Value
Alabama (1.9%)
Cullman Cnty., Hlth. Care Auth. Rev. Bonds, (Cullman Regl. Med. Ctr.), Ser. A, 6.75%, 2/1/29 Baa3 $1,100,000 $1,115,884
Jefferson Cnty., Swr. Rev. Bonds
Ser. D, 6.50%, 10/1/53 BBB- 500,000 586,180
zero %, 10/1/46 BBB- 3,950,000 3,395,815
Jefferson, Cnty. Rev. Bonds, (Warrants)
5.00%, 9/15/34 AA 2,075,000 2,349,336
5.00%, 9/15/33 AA 275,000 312,243
7,759,458
Alaska (0.4%)
Northern Tobacco Securitization Corp. Rev. Bonds, Ser. A, 5.00%, 6/1/46 B3 1,500,000 1,508,715
1,508,715
Arizona (4.1%)
AZ State Indl. Dev. Auth. Ed. 144A Rev. Bonds, (BASIS Schools, Inc.), Ser. G, 5.00%, 7/1/37 BB 500,000 518,545
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 1,032,480
Maricopa Cnty., Indl. Dev. Auth. Ed. Rev. Bonds, (Horizon Cmnty. Learning Ctr.), 5.00%, 7/1/35 BB+ 500,000 519,510
Maricopa Cnty., Poll. Control Rev. Bonds, (El Paso Elec. Co.), Ser. A, 7.25%, 2/1/40 Baa1 2,200,000 2,256,738
Phoenix, Indl. Dev. Auth. Ed. Rev. Bonds
(Great Hearts Academies), 6.00%, 7/1/32 (Prerefunded 7/1/21) AAA/P 200,000 223,314
(Choice Academies, Inc.), 5.625%, 9/1/42 BB+ 315,000 327,827
(Great Hearts Academies), 5.00%, 7/1/44 BBB- 1,700,000 1,788,689
(Choice Academies, Inc.), 4.875%, 9/1/22 BB+ 555,000 572,138
Phoenix, Indl. Dev. Auth. Ed. 144A Rev. Bonds, (BASIS Schools, Inc.)
Ser. A, 5.00%, 7/1/46 BB 250,000 256,005
5.00%, 7/1/35 BB 900,000 929,691
Ser. A, 5.00%, 7/1/35 BB 600,000 619,794
Salt Verde, Fin. Corp. Gas Rev. Bonds
5.50%, 12/1/29 Baa1 2,000,000 2,398,360
5.00%, 12/1/37 Baa1 2,000,000 2,378,160
5.00%, 12/1/32 Baa1 570,000 665,680
Yavapai Cnty., Indl. Dev. Auth. Hosp. Fac. Rev. Bonds
(Yavapai Regl. Med.), 5.00%, 8/1/36 A3 200,000 216,562
(Yavapai Regl. Med. Ctr.), 5.00%, 8/1/34 A3 200,000 217,568
Yavapai Cnty., Indl. Dev. Ed. Auth. Rev. Bonds, (Agribusiness & Equine Ctr.), 5.00%, 3/1/32 BB+ 1,000,000 1,014,320
Yavapai Cnty., Indl. Dev. Ed. Auth. 144A Rev. Bonds, Ser. A, 5.00%, 9/1/34 BB+ 500,000 506,690
16,450,440
California (11.8%)
ABAG Fin. Auth. for Nonprofit Corps. Rev. Bonds
(Episcopal Sr. Cmntys.), 6.00%, 7/1/31 A-/F 660,000 722,759
(O'Connor Woods), 5.00%, 1/1/33 AA- 600,000 666,882
CA School Fin. Auth. Rev. Bonds, (2023 Union, LLC), Ser. A, 6.00%, 7/1/33 BBB 465,000 516,824
CA State Muni. Fin. Auth. Charter School Rev. Bonds, (Partnerships Uplift Cmnty.), Ser. A, 5.00%, 8/1/32 BB 665,000 678,500
CA State Poll. Control Fin. Auth. Rev. Bonds
(Wtr. Furnishing), 5.00%, 11/21/45 Baa3 1,000,000 1,060,400
(San Jose Wtr. Co.), 4.75%, 11/1/46 A 1,100,000 1,183,820
CA State Poll. Control Fin. Auth. Solid Waste Disp. 144A Mandatory Put Bonds (11/1/18), (Republic Svcs., Inc.), Ser. A, 1.85%, 8/1/23 A-2 4,250,000 4,250,000
CA Statewide Cmnty. Dev. Auth. Rev. Bonds
(Terraces at San Joaquin Gardens), Ser. A, 6.00%, 10/1/47 BB/P 1,345,000 1,453,044
(American Baptist Homes West), 5.75%, 10/1/25 BBB+/F 3,000,000 3,134,010
(U. CA Irvine E. Campus Apts. Phase 1), 5.375%, 5/15/38 Baa1 1,000,000 1,062,980
(899 Charleston, LLC), Ser. A, 5.25%, 11/1/44 BB/P 450,000 477,473
(U. CA Irvine E. Campus Apts. Phase 1), 5.125%, 5/15/31 Baa1 2,250,000 2,392,290
Corona-Norco, School Dist. Pub. Fin. Auth. Special Tax Bonds, (Sr. Lien), Ser. A, 5.00%, 9/1/28 A- 380,000 421,416
Golden State Tobacco Securitization Corp. Rev. Bonds
(Tobacco Settlement), Ser. A-1, 5.25%, 6/1/47 BB/P 2,500,000 2,601,725
Ser. A-1, 5.125%, 6/1/47 B+ 3,235,000 3,247,164
La Verne, COP, (Brethren Hillcrest Homes), 5.00%, 5/15/36 BBB-/F 325,000 341,081
Los Angeles, Dept. of Arpt. Rev. Bonds, (Los Angeles Intl. Arpt.), 5.00%, 5/15/30 AA 1,000,000 1,116,860
Los Angeles, CA Dept. Wtr. & Pwr. Rev. Bonds, Ser. C., 5%, 7/1/42(T) AA 6,650,000 7,542,976
Los Angeles, Regl. Arpt. Impt. Corp. Lease Rev. Bonds, (Laxfuel Corp.), 4.50%, 1/1/27 A 400,000 416,548
M-S-R Energy Auth. Rev. Bonds, Ser. A, 6.50%, 11/1/39 BBB+ 750,000 1,061,228
Poway, Unified School Dist. Pub. Fin. Auth. Special Tax Bonds, 5.00%, 9/15/32 BBB 485,000 526,623
Rancho Cordova, Cmnty. Fac. Dist. Special Tax Bonds, (Sunridge Anatolia), Ser. 03-1, 5.00%, 9/1/37 BBB-/P 350,000 375,715
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 2,000,000 509,300
zero %, 8/1/38 BBB/P 2,000,000 688,820
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+ 250,000 263,173
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 1,756,377
Sunnyvale, Special Tax Bonds, (Cmnty. Fac. Dist. No. 1), 7.75%, 8/1/32 B+/P 835,000 837,246
U. of CA Rev. Bonds, Ser. AF, U.S. Govt. Coll, 5.00% 5/15/36 (Prerefunded 5/15/23)(T) AAA 1,500,625 1,684,352
U. of CA Rev. Bonds, Ser. AF, 5.00% 5/15/36(T) AA 5,499,375 6,166,111
Yucaipa Special Tax Bonds, (Cmnty. Fac. Dist. No. 98-1 Chapman Heights), 5.375%, 9/1/30 BBB+ 375,000 400,898
47,556,595
Colorado (3.5%)
Central Platte Valley, Metro. Dist. G.O. Bonds, 5.00%, 12/1/43 BB+ 400,000 424,532
CO Pub. Hwy. Auth. Rev. Bonds, (E-470), Ser. C, 5.375%, 9/1/26 A 500,000 534,530
CO State Educ. & Cultural Fac. Auth. Rev. Bonds, (Skyview Academy), 5.125%, 7/1/34 BB 755,000 772,931
CO State Hlth. Fac. Auth. Rev. Bonds
(Christian Living Cmnty.), 6.375%, 1/1/41 BB/P 810,000 871,050
(Total Longterm Care National), Ser. A, 6.25%, 11/15/40 (Prerefunded 11/15/20) AAA/P 300,000 329,760
(Evangelical Lutheran Good Samaritan Society Oblig. Group (The)), 5.625%, 6/1/43 Baa2 250,000 274,925
(Evangelical Lutheran Good Samaritan Society Oblig. Group (The)), 5.00%, 12/1/33 Baa2 1,100,000 1,163,877
CO State Hlth. Fac. Auth. Hosp. Rev. Bonds
(Frasier Meadows Retirement Cmnty.), Ser. A, 5.25%, 5/15/37 BB+/F 1,000,000 1,094,100
(Frasier Meadows Retirement Cmnty.), Ser. B, 5.00%, 5/15/48 BB+/F 1,500,000 1,560,690
(Christian Living Neighborhood), 5.00%, 1/1/37 BB/P 1,250,000 1,311,475
(Christian Living Neighborhood), 5.00%, 1/1/31 BB/P 500,000 529,815
E-470 CO Pub. Hwy. Auth. FRN Mandatory Put Bonds (9/1/19), (Sr. Libor Index), Ser. A, 2.287%, 9/1/39 A 1,900,000 1,905,928
Eaton, Area Park & Recreation Dist. G.O. Bonds, 5.25%, 12/1/34 BB/P 220,000 231,807
Park Creek, Metro. Dist. Tax Allocation Bonds, (Sr. Ltd. Property Tax Supported), Ser. A, 5.00%, 12/1/45 A/F 225,000 250,646
Plaza, Tax Alloc. Bonds, (Metro. Dist. No. 1), 5.00%, 12/1/40 BB-/P 1,650,000 1,703,658
Regl. Trans. Dist. Rev. Bonds, (Denver Trans. Partners), 6.00%, 1/15/41 Baa3 750,000 785,220
Southlands, Metro. Dist. No. 1 G.O. Bonds, Ser. A-1, 5.00%, 12/1/37 Ba1 500,000 537,785
14,282,729
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 1,600,875
1,600,875
Delaware (1.6%)
DE State Econ. Dev. Auth. Rev. Bonds
(Delmarva Pwr.), 5.40%, 2/1/31 Baa1 500,000 530,320
(Indian River Pwr.), 5.375%, 10/1/45 Baa3 2,600,000 2,711,670
(ASPIRA Charter School), Ser. A, 5.00%, 6/1/36 BB+ 705,000 714,525
DE State Hlth. Fac. Auth. VRDN, (Christiana Care), Ser. A, 1.54%, 10/1/38 VMIG1 2,500,000 2,500,000
6,456,515
District of Columbia (1.6%)
DC Rev. Bonds, (Howard U.), Ser. A
6.50%, 10/1/41 BBB 395,000 421,339
6.25%, 10/1/32 BBB 525,000 558,632
U.S. Govt. Coll., 6.25%, 10/1/32 (Prerefunded 4/1/21) AAA/P 475,000 529,986
DC Tobacco Settlement Fin. Corp. Rev. Bonds, Ser. A, zero %, 6/15/46 CCC/P 7,500,000 1,326,225
DC, Rev. Bonds, (Methodist Home of The DC (The)), Ser. A, 5.25%, 1/1/39 BB-/P 250,000 244,175
DC, Wtr. & Swr. Auth. Pub. Util. Rev. Bonds, Ser. C, 5.00%, 10/1/39 AA+ 3,000,000 3,382,020
6,462,377
Florida (7.1%)
Cap. Trust Agcy. Senior Living Rev. Bonds, (H-Bay Ministries, Inc.-Superior Residencies)
Ser. B, 5.25%, 7/1/48 BBB 500,000 522,010
Ser. A-1, 4.00%, 7/1/43 A- 1,000,000 992,170
Cap. Trust Agcy. Senior Living 144A Rev. Bonds, (H-Bay Ministries, Inc.-Superior Residencies), Ser. C, 7.50%, 7/1/53 B-/P 250,000 239,300
Celebration Pointe Cmnty. Dev. Dist. No. 1 144A Special Assessment Bonds, (Alachua Cnty.), 5.00%, 5/1/48 B/P 250,000 260,593
Double Branch Cmnty. Dev. Dist. Special Assmt. Bonds, (Sr. Lien), Ser. A-1, 4.125%, 5/1/31 A- 500,000 513,315
Fishhawk, CCD IV Special Assmt. Bonds, 7.25%, 5/1/43 B/P 380,000 400,482
Florida State Higher Edl. Fac. Rev. Bonds, (U. of Tampa), Ser. A, 5.00%, 4/1/32 A- 600,000 649,992
Greater Orlando Aviation Auth. Rev. Bonds, (JetBlue Airways Corp.), 5.00%, 11/15/36 B/P 1,000,000 1,053,350
Halifax Hosp. Med. Ctr. Rev. Bonds, 5.00%, 6/1/36 A- 1,300,000 1,437,176
Jacksonville, Econ. Dev. Comm. Indl. Dev. Rev. Bonds, (Gerdau Ameristeel US, Inc.), 5.30%, 5/1/37 BBB- 1,350,000 1,350,527
Lakeland, Retirement Cmnty. 144A Rev. Bonds, (1st Mtge. - Carpenters), 6.375%, 1/1/43 BBB-/F 840,000 848,879
Lakewood Ranch, Stewardship Dist. Special Assessment Bonds, (Village of Lakewood Ranch South), 5.125%, 5/1/46 B+/P 945,000 980,702
Lakewood Ranch, Stewardship Dist. Special Assmt. Bonds, 4.875%, 5/1/35 BB-/P 490,000 498,845
Martin Cnty., Rev. Bonds, (Indiantown Cogeneration), 4.20%, 12/15/25 Baa2 1,500,000 1,525,320
Miami Beach, Hlth. Fac. Auth. Hosp. Rev. Bonds, (Mount Sinai Med. Ctr.), 5.00%, 11/15/29 Baa1 1,000,000 1,067,380
Miami-Dade Cnty., Rev. Bonds, (Tran. Syst. Sales Surtax), 5.00%, 7/1/42 AA 2,000,000 2,169,720
Miami-Dade Cnty., Indl. Dev. Auth. Rev. Bonds, (Pinecrest Academy, Inc.), 5.00%, 9/15/34 BBB 1,240,000 1,292,985
Miami-Dade Cnty., Transit Syst. Rev. Bonds, 4.00%, 7/1/36 AA 3,000,000 3,117,570
Midtown Miami Cmnty. Dev. Dist. Special Assmt. Bonds, (Garage), Ser. A, 5.00%, 5/1/29 BB-/P 570,000 602,467
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 2,167,300
Sarasota Cnty., Hlth. Fac. Auth. Rev. Bonds, (Village on the Isle), Ser. A, 5.00%, 1/1/37 BBB-/F 1,000,000 1,077,010
South Lake Hosp. Dist. Rev. Bonds, (South Lake Hosp.), Ser. A, 6.00%, 4/1/29 Baa1 1,000,000 1,023,330
Southeast Overtown Park West Cmnty. Redev. Agcy. 144A Tax Alloc. Bonds, Ser. A-1, 5.00%, 3/1/30 BBB+ 480,000 525,365
Tallahassee, Hlth. Fac. Rev. Bonds, (Tallahassee Memorial HealthCare, Inc.), Ser. A, 5.00%, 12/1/55 Baa1 1,000,000 1,065,560
Tolomato, Cmnty. Dev. Dist. Special Assmt. Bonds, 5.40%, 5/1/37 B+/P 645,000 645,697
Verandah, West Cmnty. Dev. Dist. Special Assmt. Bonds, (Cap. Impt.), 5.00%, 5/1/33 B+/P 470,000 476,101
Village Cmnty. Dev. Dist. No. 10 Special Assmt. Bonds, 5.75%, 5/1/31 BB/P 745,000 845,061
Village Cmnty. Dev. Dist. No. 12 144A Special Assessment Bonds, 4.00%, 5/1/33 BB-/P 750,000 761,475
Village Cmnty. Dev. Dist. No. 8 Special Assmt. Bonds, (Phase II), 6.125%, 5/1/39 BBB-/P 380,000 404,738
Village Cmnty. Dev. Dist. No. 9 Special Assmt. Bonds, 5.00%, 5/1/22 BBB-/P 265,000 276,276
28,790,696
Georgia (3.5%)
Clayton Cnty., Dev. Auth. Special Fac. Rev. Bonds, (Delta Airlines), Ser. A, 8.75%, 6/1/29 Baa3 3,000,000 3,325,290
Cobb Cnty., Dev. Auth. Student Hsg. Rev. Bonds, (Kennesaw State U. Real Estate Oblig. Group), Ser. C, 5.00%, 7/15/38 Baa2 750,000 793,718
Forsyth Cnty., Hosp. Auth. Rev. Bonds, (Baptist Hlth. Care Syst.), U.S. Govt. Coll., 6.25%, 10/1/18 (Escrowed to maturity) AA+ 260,000 262,101
GA State Private College & U. Auth. Rev. Bonds, (Mercer U.)
Ser. C, 5.25%, 10/1/30 Baa2 750,000 804,615
Ser. A, 5.25%, 10/1/27 Baa2 1,000,000 1,071,770
Ser. A, 5.00%, 10/1/32 Baa2 1,000,000 1,044,510
Gainesville & Hall Cnty., Dev. Auth. Edl. Fac. Rev. Bonds, (Riverside Military Academy)
5.00%, 3/1/47 BBB-/F 1,000,000 1,047,560
5.00%, 3/1/37 BBB-/F 1,450,000 1,533,868
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 700,000 742,266
Marietta, Dev. Auth. 144A Rev. Bonds, (Life U. Fac. ), Ser. A, 5.00%, 11/1/37 Ba3 1,000,000 1,067,830
Muni. Election Auth. of GA Rev. Bonds, (Plant Voltage Units 3 & 4), Ser. A, 5.50%, 7/1/60 A+ 2,000,000 2,213,920
13,907,448
Guam (0.1%)
Territory of GU, Pwr. Auth. Rev. Bonds, Ser. A, 5.00%, 10/1/34 Baa2 200,000 210,886
210,886
Hawaii (1.0%)
HI State Dept. Budget & Fin. Rev. Bonds
(Craigside), Ser. A, 9.00%, 11/15/44 (Prerefunded 11/15/19) B/P 400,000 437,460
(Hawaiian Elec. Co. - Subsidiary), 6.50%, 7/1/39 Baa2 3,000,000 3,118,800
(Kahala Nui), 5.125%, 11/15/32 A-/F 400,000 441,212
3,997,472
Idaho (0.5%)
ID State Hlth. Fac. Auth. Rev. Bonds, (St. Luke's Hlth. Sys. Oblig. Group), Ser. A, 4.00%, 3/1/38 A3 2,000,000 2,004,900
2,004,900
Illinois (10.6%)
Chicago, G.O. Bonds
Ser. A, 6.00%, 1/1/38 BBB+ 2,560,000 2,889,472
Ser. B-2, 5.50%, 1/1/37 BBB+ 2,000,000 2,136,680
Ser. C, 5.00%, 1/1/38 BBB+ 1,000,000 1,050,480
Chicago, Special Assmt. Bonds, (Lake Shore East), 6.75%, 12/1/32 BB/P 1,581,000 1,589,759
Chicago, Board of Ed. G.O. Bonds
Ser. C, 5.25%, 12/1/39 B+ 1,500,000 1,554,585
Ser. H, 5.00%, 12/1/36 B+ 3,100,000 3,207,291
Chicago, Motor Fuel Tax Rev. Bonds, 5.00%, 1/1/29 Ba1 500,000 524,850
Chicago, O'Hare Intl. Arpt. Rev. Bonds, Ser. C, 5.00%, 1/1/26 A2 2,595,000 2,829,303
Chicago, Waste Wtr. Transmission Rev. Bonds, (2nd Lien), 5.00%, 1/1/39 A 1,360,000 1,455,622
Chicago, Wtr. Wks Rev. Bonds
5.00%, 11/1/39 A 875,000 939,391
5.00%, 11/1/30 A 1,000,000 1,117,990
Cicero, G.O. Bonds, Ser. A, AGM, 5.00%, 1/1/20 AA 1,250,000 1,297,375
Cook Cnty., G.O. Bonds, 5.00%, 11/15/35 AA- 500,000 555,035
Du Page Cnty., Special Svc. Area No. 31 Special Tax Bonds, (Monarch Landing), 5.625%, 3/1/36 B/P 319,000 319,108
IL Fin. Auth. Rev. Bonds
(Silver Cross Hosp. & Med. Ctr.), 7.00%, 8/15/44 (Prerefunded 8/15/19) AAA/P 2,000,000 2,110,940
(Navistar Intl. Recvy. Zone), 6.75%, 10/15/40 B+ 500,000 529,100
(Rush U. Med. Ctr.), Ser. C, U.S. Govt. Coll., 6.625%, 11/1/39 (Prerefunded 5/1/19) Aaa 1,075,000 1,115,667
(American Wtr. Cap. Corp.), 5.25%, 10/1/39 A 1,575,000 1,613,714
IL State G.O. Bonds
5.00%, 11/1/41 Baa3 1,250,000 1,306,600
5.00%, 1/1/41 Baa3 700,000 728,994
5.00%, 2/1/39 Baa3 200,000 206,790
5.00%, 11/1/34 Baa3 500,000 527,250
Ser. C, 5.00%, 11/1/29 Baa3 1,200,000 1,285,212
Ser. A, 5.00%, 12/1/28 Baa3 1,760,000 1,894,411
Ser. D, 5.00%, 11/1/28 Baa3 1,000,000 1,075,800
IL State Fin. Auth. Rev. Bonds
(Provena Hlth.), Ser. A, 7.75%, 8/15/34 (Prerefunded 8/15/19) AAA/P 15,000 15,947
(Provena Hlth.), Ser. A, U.S. Govt. Coll., 7.75%, 8/15/34 (Prerefunded 8/15/19) AAA/P 1,485,000 1,578,778
(Three Crowns Park), 5.25%, 2/15/47 BB-/P 540,000 565,704
(Plymouth Place), 5.25%, 5/15/45 BB+/F 1,000,000 1,049,930
(Three Crowns Park), 5.25%, 2/15/37 BB-/P 305,000 322,833
(Southern IL Healthcare Enterprises, Inc.), 5.00%, 3/1/33 A+ 700,000 781,074
(Windy City Portfolio), Ser. A-1, 4.375%, 12/1/42 A- 1,000,000 977,230
(Riverside Hlth. Syst.), 4.00%, 11/15/35 A+ 500,000 499,355
IL State Fin. Auth. Student Hsg. & Academic Fac. Rev. Bonds, (U. of IL-CHF-Chicago, LLC), Ser. A
5.00%, 2/15/47 Baa3 500,000 541,145
5.00%, 2/15/37 Baa3 500,000 546,320
Metro. Pier & Exposition Auth. Rev. Bonds, (McCormick Place Expansion), Ser. B, stepped-coupon zero % (4.950%, 6/15/31), 12/15/47(STP) BB+ 1,500,000 838,710
Metro. Wtr. Reclamation Dist. of Greater Chicago G.O. Bonds, Ser. A, 5.00%, 12/1/31 AA+ 1,000,000 1,134,580
42,713,025
Indiana (1.4%)
IN State Fin. Auth. Econ. Dev. Mandatory Put Bonds (12/3/18), (Republic Svcs., Inc.), Ser. A, 1.75%, 5/1/34 A-2 2,800,000 2,799,944
IN State Fin. Auth. Edl. Fac. Rev. Bonds, (Butler U.), Ser. B
5.00%, 2/1/32 A- 1,000,000 1,079,740
5.00%, 2/1/29 A- 500,000 541,085
Valparaiso, Exempt Facs. Rev. Bonds, (Pratt Paper, LLC), 6.75%, 1/1/34 B+/P 1,125,000 1,312,909
5,733,678
Iowa (0.8%)
IA State Fin. Auth. Midwestern Disaster Rev. Bonds, (IA Fertilizer Co., LLC)
5.50%, 12/1/22 B 1,000,000 1,008,290
5.25%, 12/1/25 B 750,000 801,990
Tobacco Settlement Auth. of IA Rev. Bonds, Ser. C, 5.375%, 6/1/38 B+ 1,250,000 1,263,525
3,073,805
Kansas (0.4%)
Lenexa, Hlth. Care Fac. Rev. Bonds, (LakeView Village), 7.125%, 5/15/29 (Prerefunded 5/15/19) BB/P 500,000 522,045
Wichita, Hlth. Care Fac. Rev. Bonds, (Presbyterian Manors), Ser. I, 5.00%, 5/15/33 BB-/P 500,000 532,625
Wyandotte, Cnty./Kanasas City, Unified Govt. 144A Rev. Bonds, (Legends Apt. Garage & West Lawn), 4.50%, 6/1/40 AA 500,000 506,915
1,561,585
Kentucky (2.1%)
KY Econ. Dev. Fin. Auth. Rev. Bonds
(Masonic Home Indpt. Living II), 7.25%, 5/15/41 (Prerefunded 5/15/21) BB-/P 500,000 572,380
(Masonic Home Indpt. Living II), 7.00%, 5/15/30 (Prerefunded 5/15/21) BB-/P 500,000 569,005
(Masonic Home Indpt. Living), 5.00%, 5/15/46 BB/P 1,000,000 1,045,160
KY Pub. Trans. Infrastructure Auth. Rev. Bonds, (1st Tier Downtown Crossing), Ser. A, 6.00%, 7/1/53 Baa3 1,100,000 1,215,544
KY State Econ. Dev. Fin. Auth. Rev. Bonds, (Owensboro Hlth.), Ser. A, 5.25%, 6/1/41 Baa3 125,000 136,424
KY State Econ. Dev. Fin. Auth. Hlth. Care Rev. Bonds, (Masonic Homes of KY), 5.375%, 11/15/42 BB-/P 900,000 940,311
Louisville & Jefferson Cnty., Metro. Govt. Hlth. Syst. Rev. Bonds, (Norton Healthcare Oblig. Group), 5.50%, 10/1/33 A- 3,000,000 3,360,750
Owen Cnty., Wtr. Wks. Syst. Rev. Bonds, (American Wtr. Co.), Ser. A, 6.25%, 6/1/39 A 700,000 725,837
8,565,411
Louisiana (0.6%)
LA State Pub. Fac. Auth. Rev. Bonds, (Ochsner Clinic Foundation), 5.00%, 5/15/47 A3 250,000 272,150
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
Pub. Fac. Auth. Rev. Bonds, (Tulane U.), Ser. A, 4.00%, 12/15/50 A2 750,000 755,228
Pub. Fac. Auth. Dock & Wharf 144A Rev. Bonds, (Impala Warehousing, LLC), 6.50%, 7/1/36 B+/P 1,000,000 1,107,200
St. Tammany, Public Trust Fin. Auth. Rev. Bonds, (Christwood), 5.25%, 11/15/37 BB/P 385,000 410,830
2,545,413
Maine (0.7%)
ME Hlth. & Higher Edl. Fac. Auth. Rev. Bonds
(ME Gen. Med. Ctr.), 7.50%, 7/1/32 Ba3 1,000,000 1,109,560
(MaineGeneral Health Oblig. Group), 6.95%, 7/1/41 Ba3 1,000,000 1,088,090
ME State Fin. Auth. Solid Waste Disp. 144A Mandatory Put Bonds (8/1/25), (Casella Waste Syst.), 5.125%, 8/1/35 B3 500,000 517,975
2,715,625
Maryland (1.1%)
Frederick Cnty., Edl. Fac. 144A Rev. Bonds, (Mount St. Mary's U.), Ser. A, 5.00%, 9/1/37 BB+ 500,000 536,165
MD Econ. Dev. Corp. Poll. Control Rev. Bonds, (Potomac Electric Power Co.), 6.20%, 9/1/22 A2 550,000 564,421
Prince Georges Cnty., Rev. Bonds, (Collington Episcopal Life Care Cmnty., Inc.), 5.25%, 4/1/37 BB/P 1,200,000 1,287,948
Westminster, Rev. Bonds
(Lutheran Village at Miller's Grant, Inc. (The)), Ser. A, 6.00%, 7/1/34 B-/P 250,000 268,198
(Carroll Lutheran Village, Inc.), 5.125%, 7/1/34 BB/P 1,500,000 1,605,150
4,261,882
Massachusetts (2.6%)
MA State Dev. Fin. Agcy. Rev. Bonds
(Sabis Intl.), Ser. A, 8.00%, 4/15/39 (Prerefunded 10/15/19) BBB 690,000 742,806
(Linden Ponds, Inc. Fac.), Ser. A-1, 6.25%, 11/15/46 B-/P 450,850 466,364
(Suffolk U.), Ser. A, 6.25%, 7/1/30 Baa2 360,000 371,714
(Suffolk U.), Ser. A, U.S. Govt. Coll., 6.25%, 7/1/30 (Prerefunded 7/1/19) AAA/P 640,000 667,661
(Linden Ponds, Inc. Fac.), Ser. A-1, 6.25%, 11/15/26 B-/P 275,400 284,915
(Loomis Cmntys.), Ser. A, 6.00%, 1/1/33 BBB 200,000 225,242
(Suffolk U.), Ser. A, 5.75%, 7/1/39 Baa2 320,000 327,952
(Suffolk U.), Ser. A, U.S. Govt. Coll., 5.75%, 7/1/39 (Prerefunded 7/1/19) AAA/P 630,000 654,381
(Linden Ponds, Inc.), Ser. A-2 , 5.50%, 11/15/46 B-/P 88,265 88,286
(First Mtge. - Orchard Cove), 5.00%, 10/1/19 BB/P 550,000 551,199
(Linden Ponds, Inc.), Ser. B, zero %, 11/15/56 B-/P 439,022 90,417
MA State Dev. Fin. Agcy. Hlth. Care Fac. 144A Rev. Bonds, (Adventcare), Ser. A, 6.65%, 10/15/28 B/P 1,050,000 1,051,964
MA State Hlth. & Edl. Fac. Auth. Rev. Bonds
(Springfield College), 5.625%, 10/15/40 (Prerefunded 10/15/19) BBB 450,000 471,537
(Springfield College), 5.50%, 10/15/31 (Prerefunded 10/15/19) BBB 1,100,000 1,151,007
(Springfield College), 5.50%, 10/15/26 (Prerefunded 10/15/19) BBB 1,500,000 1,569,555
(Milford Regl. Med.), Ser. E, 5.00%, 7/15/22 BBB- 820,000 827,544
MA State Port Auth. Special Fac. Rev. Bonds, (Conrac), Ser. A, 5.125%, 7/1/41 A 750,000 802,575
10,345,119
Michigan (6.4%)
Detroit, Wtr. Supply Syst. Rev. Bonds, Ser. B, AGM, 6.25%, 7/1/36 AA 5,000 5,197
Flint, Hosp. Bldg. Auth. Rev. Bonds, Ser. A, 5.25%, 7/1/39 Ba1 750,000 771,195
Genesee Cnty., Wtr. Supply Syst. G.O. Bonds, (Wtr. Supply Syst.), Ser. B, BAM, 5.00%, 2/1/46 AA 1,500,000 1,652,445
Great Lakes, Wtr. Auth. Swr. Rev. Bonds, (Brazos Presbyterian Homes, Inc.), Ser. C, 5.00%, 7/1/36 Baa1 2,000,000 2,210,120
Kentwood, Economic Dev. Rev. Bonds, (Holland Home), 5.625%, 11/15/32 BBB-/F 2,195,000 2,372,685
MI State Fin. Auth. Rev. Bonds
(Local Govt. Loan Program - Detroit Wtr. & Swr. Dept. (DWSD)), Ser. D-2, 5.00%, 7/1/34 Baa1 400,000 437,064
(Detroit Wtr. & Swr.), Ser. C-6, 5.00%, 7/1/33 A3 600,000 658,092
MI State Fin. Auth. Ltd. Oblig. Rev. Bonds
(Lawrence Technological U.), 5.00%, 2/1/47 BB+ 2,150,000 2,294,007
(Kalamazoo College), 4.00%, 12/1/47 A1 1,000,000 1,004,160
MI State Hosp. Fin. Auth. Rev. Bonds (Trinity Hlth. Credit Group), Ser. A, 5%, 12/1/47(T) AA- 8,500,000 9,206,794
MI State Strategic Fund Ltd. Rev. Bonds, (Worthington Armstrong Venture), 5.75%, 10/1/22 (Escrowed to maturity) AAA/P 1,350,000 1,531,008
MI State Strategic Fund Ltd. Oblig. Rev. Bonds, (Cadillac Place Office Bldg.), 5.25%, 10/15/26 Aa2 1,250,000 1,377,838
Wayne Cnty., Arpt. Auth. Rev. Bonds, Ser. A, 5.00%, 12/1/21 A2 2,000,000 2,187,600
25,708,205
Minnesota (1.2%)
Baytown Twp., Lease Rev. Bonds, Ser. A, 4.00%, 8/1/41 BB+ 380,000 357,101
Ham Lake, Charter School Lease Rev. Bonds, (DaVinci Academy of Arts & Science), Ser. A, 5.00%, 7/1/47 BB-/P 500,000 504,205
Rochester, Hlth. Care Fac. Rev. Bonds, (Olmsted Med. Ctr.), 5.875%, 7/1/30 A/F 1,000,000 1,070,240
Sartell, Hlth. Care & Hsg. Facs. Rev. Bonds, (Country Manor Campus, LLC)
5.25%, 9/1/30 B-/P 500,000 542,895
5.25%, 9/1/27 B-/P 750,000 821,588
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- 250,000 285,338
6.375%, 9/1/31 BBB- 250,000 274,335
St. Paul, Port Auth. Lease Rev. Bonds, (Regions Hosp. Pkg. Ramp), Ser. 1, 5.00%, 8/1/36 A-/P 1,125,000 1,126,913
4,982,615
Mississippi (0.4%)
Warren Cnty., Gulf Opportunity Zone Rev. Bonds, (Intl. Paper Co.), Ser. A, 6.50%, 9/1/32 Baa2 1,600,000 1,606,192
1,606,192
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 1,305,214
Saint Louis, Indl. Dev. Auth. Fin. Rev. Bonds, (Ballpark Village Dev.), Ser. A, 4.75%, 11/15/47 BB-/P 875,000 900,918
St. Louis Arpt. Rev. Bonds, (Lambert-St. Louis Intl.), Ser. A-1, 6.625%, 7/1/34 A3 1,000,000 1,043,240
3,249,372
Nebraska (0.3%)
Lancaster Cnty., Hosp. Auth. Rev. Bonds, (Immanuel Oblig. Group), 5.50%, 1/1/30 AA/F 1,000,000 1,051,120
1,051,120
Nevada (0.8%)
Clark Cnty., Arpt. Rev. Bonds, Ser. A-2, 5.00%, 7/1/33 Aa3 1,050,000 1,178,111
Clark Cnty., Impt. Dist. Special Assmt. Bonds, (Mountains Edge Local No. 142), 5.00%, 8/1/21 A 480,000 512,438
Clark Cnty., Impt. Dist. No. 159 Special Assessment Bonds, (Summerlin Village 16A), 5.00%, 8/1/32 B+/P 485,000 505,326
Las Vegas, Special Assmt. Bonds
5.00%, 6/1/31 B+/P 415,000 426,798
(Dist. No. 607 Local Impt.), 5.00%, 6/1/23 BBB-/P 350,000 376,030
Las Vegas, Impt. Dist. No. 812 Special Assessment Bonds, (Summerlin Village 24), 5.00%, 12/1/35 B/P 250,000 255,523
3,254,226
New Hampshire (3.5%)
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 1,788,094
NH State Bus. Fin. Auth. Solid Waste Disp. 144A Mandatory Put Bonds (10/1/19), (Casella Waste Syst., Inc.), 4.00%, 4/1/29 B3 350,000 352,044
NH State Hlth. & Ed. Fac. Auth. Rev. Bonds
(Rivermead), Ser. A, 6.875%, 7/1/41 BB+/P 2,000,000 2,160,580
(Rivermead), Ser. A, 6.625%, 7/1/31 BB+/P 1,320,000 1,430,233
(Catholic Med. Ctr.), 5.00%, 7/1/44 A- 1,000,000 1,093,940
(Concord Hosp. Trust), 5.00%, 10/1/42 A2 3,250,000 3,599,668
(Kendel at Hanover), 5.00%, 10/1/40 BBB+/F 585,000 627,477
(Elliot Hosp.), 5.00%, 10/1/38 Baa1 250,000 270,693
(Southern NH Med. Ctr.), 5.00%, 10/1/37 A- 1,000,000 1,091,570
NH State Hlth. & Ed. Fac. Auth. VRDN, (U. Syst. of NH), Ser. B, 1.53%, 7/1/33 VMIG1 875,000 875,000
NH State Hlth. & Ed. Fac. Auth. 144A Rev. Bonds, (Hillside Village), Ser. A, 6.25%, 7/1/42 B-/P 750,000 805,568
14,094,867
New Jersey (7.9%)
Atlantic City, G.O. Bonds, (Tax Appeal), Ser. B, AGM, 4.00%, 3/1/42 AA 1,250,000 1,273,638
Burlington Cnty., Bridge Comm. Econ. Dev. Rev. Bonds, (The Evergreens), 5.625%, 1/1/38 BB+/P 1,500,000 1,469,565
NJ State Econ. Dev. Auth. Rev. Bonds
(Ashland School, Inc.), 6.00%, 10/1/33 BBB 1,000,000 1,106,160
(NYNJ Link Borrower, LLC), 5.375%, 1/1/43 BBB- 1,000,000 1,094,810
(MSU Student Hsg. - Provident Group - Montclair LLC), 5.375%, 6/1/25 (Prerefunded 6/1/20) Aaa 2,000,000 2,135,620
(North Star Academy Charter School of Newark, Inc.), 5.00%, 7/15/47 BBB- 1,000,000 1,073,820
Ser. AAA, 5.00%, 6/15/36 Baa1 350,000 379,593
(United Methodist Homes), Ser. A, 5.00%, 7/1/29 BBB-/F 500,000 536,150
Ser. B, 5.00%, 11/1/26 Baa1 3,000,000 3,376,980
5.00%, 6/15/26 Baa1 500,000 533,620
NJ State Econ. Dev. Auth. Fac. Rev. Bonds, (Continental Airlines, Inc.), 5.625%, 11/15/30 BB 1,500,000 1,699,050
NJ State Econ. Dev. Auth. Special Fac. Rev. Bonds, (Port Newark Container Term., LLC), 5.00%, 10/1/37 Ba1 1,500,000 1,621,230
NJ State Econ. Dev. Auth. Wtr. Fac. Rev. Bonds, (NJ American Wtr. Co.)
Ser. A, 5.70%, 10/1/39 A1 2,600,000 2,699,632
Ser. D, 4.875%, 11/1/29 A1 700,000 732,018
NJ State Hlth. Care Fac. Fin. Auth. Rev. Bonds
(St. Peter's U. Hosp.), 6.25%, 7/1/35 Ba1 2,000,000 2,137,300
(St. Joseph's Healthcare Syst. Oblig. Group), 5.00%, 7/1/41 Baa3 835,000 888,223
NJ State Trans. Trust Fund Auth. Rev. Bonds, (Federal Hwy. Reimbursement Notes)
5.00%, 6/15/29 A+ 1,050,000 1,172,010
5.00%, 6/15/28 A+ 600,000 672,372
North Hudson, Swr. Auth. Rev. Bonds, Ser. A, 5.00%, 6/1/42 A 1,000,000 1,076,710
South Jersey, Port Corp. Rev. Bonds, (Marine Term.), Ser. B, 5.00%, 1/1/42 Baa1 1,000,000 1,087,590
Tobacco Settlement Fin. Corp. Rev. Bonds, Ser. B, 5.00%, 6/1/46 BBB 3,300,000 3,543,672
Union Cnty., Util. Auth. Resource Recvy. Fac. Lease Rev. Bonds, (Covanta Union), Ser. A, 5.25%, 12/1/31 AA+ 1,450,000 1,589,273
31,899,036
New Mexico (0.7%)
Farmington, Poll. Control Rev. Bonds
(Public Service Co. of San Juan, NM), Ser. D, 5.90%, 6/1/40 BBB+ 500,000 531,230
(AZ Pub. Svc. Co.), Ser. B, 4.70%, 9/1/24 A2 2,000,000 2,115,140
2,646,370
New York (10.7%)
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 300,000 252,636
Metro. Trans. Auth. Rev. Bonds, (Green Bonds), Ser. C-1, 4.00%, 11/15/32 A1 3,500,000 3,718,400
Metro. Trans. Auth. Dedicated Tax FRN Mandatory Put Bonds (6/1/22), Ser. A-2A, 1.39%, 11/1/26 AA 2,955,000 2,976,099
NY City, Transitional Fin. Auth. Rev. Bonds, Ser. A-1, 4.00%, 8/1/41(FWC) AAA 6,000,000 6,235,290
NY Counties, Tobacco Trust VI Rev. Bonds, (Tobacco Settlement Pass Through), Ser. A-2B, 5.00%, 6/1/51 BBB 1,700,000 1,776,007
NY State Convention Ctr. Dev. Corp. Rev. Bonds, (Hotel Unit Fee), zero %, 11/15/50 Aa3 2,500,000 659,550
NY State Dorm. Auth. Non-State Supported Debt Rev. Bonds, (NYU Hosp. Ctr.), 5.00%, 7/1/34 A3 500,000 556,960
NY State Dorm. Auth. Rev. Bonds, Ser. C, 5.00%, 3/15/31(T) AAA 5,000,000 5,386,901
NY State Dorm. Auth. Rev. Bonds, Ser. A Group C, 5.00%, 3/15/42(T) AAA 10,845,000 12,363,743
NY State Env. Fac. Corp. Solid Waste Disp. 144A Mandatory Put Bonds (12/2/19), (Casella Waste Syst., Inc.), 3.75%, 12/1/44 B3 1,000,000 1,002,800
NY State Liberty Dev. Corp. 144A Rev. Bonds
(World Trade Ctr.), Class 2, 5.375%, 11/15/40 BB-/P 750,000 826,058
(3 World Trade Ctr., LLC), Class 1-3, 5.00%, 11/15/44 BB-/P 1,250,000 1,320,938
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 1,674,432
Port Auth. of NY & NJ Rev. Bonds
(Kennedy Intl. Arpt. - 5th Installment), 6.75%, 10/1/19 BBB-/P 100,000 104,614
Ser. 207th, 5.00%, 9/15/30 Aa3 2,500,000 2,910,475
Port Auth. of NY & NJ Special Oblig. Rev. Bonds, (John F. Kennedy Intl. Air Term), 6.00%, 12/1/42 Baa1 1,000,000 1,091,330
42,856,233
North Carolina (1.7%)
NC Eastern Muni. Pwr. Agcy. Syst. Rev. Bonds, Ser. C, 6.75%, 1/1/24 (Prerefunded 1/1/19) AAA/F 750,000 766,770
NC State Med. Care Comm. Hlth. Fac. Rev. Bonds, (Presbyterian Homes), Ser. C, 5.00%, 10/1/31 A-/F 800,000 895,016
NC State Med. Care Comm. Retirement Fac. Rev. Bonds
(Salemtowne), 5.375%, 10/1/45 BB/P 1,615,000 1,728,163
(Aldersgate United Methodist Retirement Cmnty., Inc.), Ser. A, 5.00%, 7/1/47 BB/P 400,000 427,256
(Aldersgate United Methodist Church), 5.00%, 7/1/45 BB/P 825,000 871,316
(Southminister, Inc.), 5.00%, 10/1/37 BB/P 965,000 1,033,679
(United Methodist Retirement Homes), Ser. A, 5.00%, 10/1/37 BBB/F 500,000 551,690
(United Church Homes & Svcs. Oblig. Group), Ser. A, 5.00%, 9/1/37 BB/P 500,000 530,335
6,804,225
Ohio (6.0%)
Buckeye, Tobacco Settlement Fin. Auth. Rev. Bonds
Ser. A-2, 6.50%, 6/1/47 B3 4,000,000 4,119,960
Ser. A-3, 6.25%, 6/1/37 B- 850,000 890,341
Ser. A-2, 6.00%, 6/1/42 B3 4,000,000 4,000,040
Ser. A-2, 5.875%, 6/1/47 B3 1,750,000 1,765,068
Ser. A-2, 5.75%, 6/1/34 B- 5,175,000 5,187,989
Ser. B, zero %, 6/1/47 CCC+/P 10,000,000 850,000
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 1,309,363
Lake Cnty., Hosp. Fac. Rev. Bonds, (Lake Hosp. Syst., Inc.), Ser. C
5.625%, 8/15/29 Baa1 245,000 245,821
U.S. Govt. Coll., 5.625%, 8/15/29 (Prerefunded 8/15/18) AAA/P 1,285,000 1,286,953
OH State Air Quality Dev. Auth. Exempt Fac. 144A Rev. Bonds, (Pratt Paper, LLC), 4.50%, 1/15/48 BB+/P 1,200,000 1,242,996
OH State Higher Edl. Fac. Comm. Rev. Bonds, (Kenyon College)
5.00%, 7/1/44 A 525,000 550,877
U.S. Govt. Coll., 5.00%, 7/1/44 (Prerefunded 7/1/20) AAA/P 275,000 291,907
OH State Private Activity Rev. Bonds, (Portsmouth Bypass), AGM, 5.00%, 12/31/35 AA 750,000 823,823
Southeastern OH Port Auth. Hosp. Fac. Rev. Bonds
5.75%, 12/1/32 BB-/F 900,000 969,786
(Memorial Hlth. Syst. Oblig. Group), 5.00%, 12/1/43 BB-/F 150,000 154,833
Toledo-Lucas Cnty., Port Auth. Rev. Bonds, (CSX Transn, Inc.), 6.45%, 12/15/21 Baa1 500,000 568,805
24,258,562
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 1,364,163
Tulsa, Muni. Arpt. Trust Rev. Bonds, (American Airlines, Inc.), Ser. B, 5.50%, 12/1/35 B+/P 1,250,000 1,339,488
2,703,651
Oregon (0.5%)
Multnomah Cnty., Hosp. Fac. Auth. Rev. Bonds
(Mirabella at South Waterfront), Ser. A, 5.40%, 10/1/44 BB-/P 500,000 533,935
(Terwilliger Plaza, Inc.), 5.00%, 12/1/29 BBB/F 350,000 375,421
Warm Springs Reservation, Confederated Tribes 144A Rev. Bonds, (Pelton Round Butte Tribal), Ser. B, 6.375%, 11/1/33 A3 700,000 726,831
Yamhill Cnty., Hosp. Auth. Rev. Bonds, (Friendsview Retirement Cmnty.), Ser. A, 5.00%, 11/15/36 BB/P 325,000 349,274
1,985,461
Pennsylvania (5.6%)
Allegheny Cnty., Higher Ed. Bldg. Auth. Rev. Bonds
(Robert Morris U.), Ser. A, 5.50%, 10/15/30 Baa3 1,000,000 1,055,050
(Robert Morris U.-UPMC Events Ctr.), 5.00%, 10/15/47 Baa3 1,190,000 1,286,509
Cap. Region Wtr. Rev. Bonds, 5.00%, 7/15/30 A+ 1,500,000 1,743,840
Chester Cnty., Hlth. & Ed. Fac. Auth. Rev. Bonds, (Immaculata U.)
5.00%, 11/1/46 BB/F 1,000,000 1,018,460
5.00%, 11/1/41 BB/F 500,000 511,110
Chester Cnty., Indl. Dev. Auth. Rev. Bonds
(Collegium Charter School), Ser. A, 5.125%, 10/15/37 BB+ 750,000 772,058
(Renaissance Academy Charter School), 5.00%, 10/1/34 BBB- 350,000 374,658
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 1,047,660
Cmnwlth. Fin. Auth. Rev. Bonds, (Tobacco Master Settlement Payment), 5.00%, 6/1/35 A1 1,000,000 1,117,630
Dauphin Cnty., Gen. Auth. Hlth. Syst. Rev. Bonds, (Pinnacle Hlth. Syst.), Ser. A, 5.00%, 6/1/34 A1 250,000 281,125
Geisinger, Auth. Rev. Bonds, (Geisinger Hlth. Syst.), Ser. A-1, 5.00%, 2/15/45 Aa2 2,500,000 2,790,250
Lycoming Cnty., Auth. Hlth. Syst. Rev. Bonds, (Susquehanna Hlth. Syst.), Ser. A, 5.75%, 7/1/39 A+ 3,000,000 3,115,800
Moon, Indl. Dev. Auth. Rev. Bonds, (Baptist Homes Society Oblig. Group), 5.75%, 7/1/35 B+/P 1,500,000 1,598,370
PA State Higher Edl. Fac. Auth. Rev. Bonds
(Shippensburg U.), 6.25%, 10/1/43 Baa3 500,000 545,260
(Gwynedd Mercy College), Ser. KK1, 5.375%, 5/1/42 BBB 785,000 818,559
PA State Tpk. Comm. Rev. Bonds
Ser. B-1, 5.00%, 6/1/42 A3 900,000 986,697
Ser. A, 5.00%, 12/1/38 A1 500,000 551,185
Philadelphia, Auth. for Indl. Dev. Rev. Bonds, (Master Charter School), 6.00%, 8/1/35 (Prerefunded 8/1/20) BBB- 1,055,000 1,143,061
Philadelphia, Hosp. & Higher Edl. Fac. Auth. VRDN, (Children's Hosp. of Philadelphia), Ser. B, 1.53%, 7/1/25 VMIG1 845,000 845,000
West Shore Area Auth. Rev. Bonds, (Lifeways at Messiah Village), Ser. A, 5.00%, 7/1/35 BBB-/F 785,000 834,416
22,436,698
Puerto Rico (0.3%)
Cmnwlth. of PR, G.O. Bonds, (Pub. Impt.), Ser. A, NATL, 5.50%, 7/1/20 Baa2 1,000,000 1,044,800
1,044,800
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 1,704,585
1,704,585
South Carolina (2.0%)
SC State Pub. Svcs. Auth. Rev. Bonds
(Santee Cooper), Ser. A, 5.75%, 12/1/43 A1 3,000,000 3,319,350
Ser. A, 5.50%, 12/1/54 A1 2,000,000 2,180,580
Ser. C, 5.00%, 12/1/46 A1 2,500,000 2,658,575
8,158,505
South Dakota (0.3%)
SD State Hlth. & Edl. Fac. Auth. Rev. Bonds, (Sanford Oblig Group), 5.00%, 11/1/45 A1 1,250,000 1,371,550
1,371,550
Tennessee (0.4%)
Johnson City, Hlth. & Edl. Fac. Board Hosp. Rev. Bonds, (Mountain States Hlth. Alliance), 6.00%, 7/1/38 (Prerefunded 7/1/20) A- 1,450,000 1,567,755
1,567,755
Texas (10.1%)
Arlington, Higher Ed. Fin. Corp. Rev. Bonds, (Uplift Ed.), Ser. A, PSFG, 4.00%, 12/1/42 AAA 1,000,000 1,030,750
Central TX Regl. Mobility Auth. Rev. Bonds, (Sr. Lien), Ser. A, 5.00%, 1/1/33 BBB+ 525,000 568,318
Clifton, Higher Ed. Fin. Corp. Rev. Bonds, (Idea Pub. Schools)
5.00%, 8/15/32 BBB+ 315,000 335,078
5.00%, 8/15/28 BBB+ 200,000 224,726
Dallas-Fort Worth, Intl. Arpt. Rev. Bonds, Ser. B, 4.50%, 11/1/45 A+ 2,535,000 2,600,859
Harris Cnty., Cultural Ed. Fac. Fin. Corp. Rev. Bonds
(Brazos Presbyterian Homes, Inc.), 5.00%, 1/1/37 BB+/F 250,000 267,150
(YMCA of the Greater Houston Area), Ser. A, 5.00%, 6/1/33 Baa3 1,000,000 1,058,330
Houston, Arpt. Syst. Rev. Bonds
Ser. B-1, 5.00%, 7/15/35 BB 2,500,000 2,686,500
Ser. B-1, 5.00%, 7/15/30 BB 650,000 705,939
Ser. A, 5.00%, 7/1/24 A+ 1,500,000 1,617,000
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 1,153,405
6.25%, 8/15/39 (Prerefunded 8/15/19) BBB 1,975,000 2,068,358
La Vernia, Higher Ed. Fin. Corp. 144A Rev. Bonds, (Meridian World School, LLC), Ser. A, 5.25%, 8/15/35 BB+ 1,000,000 1,031,770
Love Field, Arpt. Modernization Corp. Special Fac. Rev. Bonds, (Southwest Airlines Co.), 5.25%, 11/1/40 A3 3,500,000 3,713,675
Matagorda Cnty., Poll. Control Rev. Bonds
(Central Pwr. & Light Co.), Ser. A, 6.30%, 11/1/29 A- 1,000,000 1,058,370
(Dist. No. 1), Ser. A, AMBAC, 4.40%, 5/1/30 A- 1,250,000 1,330,238
Montgomery Cnty., Toll Road Auth. Rev. Bonds, 5.00%, 9/15/36 BBB- 1,110,000 1,210,433
New Hope, Cultural Ed. Fac. Fin. Corp. Rev. Bonds
(Wesleyan Homes, Inc.), 5.50%, 1/1/43 BB-/P 500,000 533,590
(Collegiate Student Hsg. Island Campus, LLC), Ser. A, 5.00%, 4/1/42 Baa3 2,830,000 3,089,483
(Collegiate Hsg.-Tarleton St.), 5.00%, 4/1/39 Baa3 500,000 532,650
(Longhorn Village), 5.00%, 1/1/37 BB-/P 500,000 530,635
(MRC Crestview), 5.00%, 11/15/36 BB+/F 200,000 209,660
(Woman's U.-Collegiate Hsg. Denton, LLC), Ser. A-1, AGM, 4.125%, 7/1/53 AA 1,000,000 1,002,560
North Texas Edl. Fin. Co. Rev. Bonds, (Uplift Edl.), Ser. A, 5.25%, 12/1/47 BBB- 2,000,000 2,109,660
Red River, Hlth. Retirement Fac. Dev. Corp. Rev. Bonds
(Happy Harbor Methodist Home, Inc.), Ser. A, 7.75%, 11/15/44 B-/P 420,000 482,089
(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 441,000 309
(Sears Methodist Retirement Syst. Oblig. Group), Ser. D, 6.05%, 11/15/46 (In default)(NON) D/P 76,000 53
(Sears Methodist Retirement Syst. Oblig. Group), Ser. A, 5.45%, 11/15/38 (In default)(NON) D/P 1,124,000 787
(Sears Methodist Retirement Syst. Oblig. Group), Ser. A, 5.15%, 11/15/27 (In default)(NON) D/P 593,000 415
Tarrant Cnty., Cultural Ed. Fac. Fin. Corp. Retirement Fac. Rev. Bonds, (Buckner Sr. Living Ventana), Ser. A, 6.75%, 11/15/47 B-/P 875,000 974,820
TX Private Activity Surface Trans. Corp. Rev. Bonds
(NTE Mobility), 7.50%, 12/31/31 Baa2 2,000,000 2,147,300
(LBJ Infrastructure), 7.00%, 6/30/40 Baa3 2,500,000 2,710,050
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 50,995
TX State Muni. Gas Acquisition & Supply Corp. III Rev. Bonds, 5.00%, 12/15/28 A3 1,500,000 1,630,275
TX State Private Activity Bond Surface Trans. Corp. Rev. Bonds, (Blueridge Trans. Group, LLC (SH 288 Toll Lane))
5.00%, 12/31/55 Baa3 500,000 537,430
5.00%, 12/31/50 Baa3 750,000 807,653
Uptown Dev. Auth. Tax Alloc. Bonds, Ser. A, 5.00%, 9/1/40 BBB 700,000 770,224
40,782,641
Utah (0.3%)
Salt Lake City, Arpt. Rev. Bonds, Ser. A, 5.00%, 7/1/36 A+ 1,000,000 1,128,680
1,128,680
Virginia (4.6%)
Cherry Hill Cmnty., Dev. Auth. 144A Special Assmt. Bonds, (Potomac Shores), 5.40%, 3/1/45 B/P 1,000,000 1,027,230
Front Royal & Warren Cnty., Indl. Dev. Auth. Rev. Bonds, (Valley Hlth. Oblig. Group), 4.00%, 1/1/50 A1 2,500,000 2,521,425
Henrico Cnty., Econ. Dev. Auth. Res. Care Fac. Rev. Bonds, (United Methodist Homes), 5.00%, 6/1/22 BB+/P 625,000 673,175
King George Cnty., Indl. Dev. Auth. Mandatory Put Bonds (5/1/19), (Waste Mgt., Inc.-King George Landfill, Inc.), Ser. A, 2.25%, 6/1/23 A-2 3,000,000 3,000,630
Lexington, Indl. Dev. Auth. Res. Care Fac. Rev. Bonds, (Kendal at Lexington), 4.00%, 1/1/31 BBB-/F 675,000 694,433
Lower Magnolia Green Cmnty., Dev. Auth. 144A Special Assmt. Bonds, 5.00%, 3/1/35 B/P 485,000 494,787
Small Bus. Fin. Auth. Private Activity Rev. Bonds, (Transform 66 P3), 5.00%, 12/31/52 Baa3 3,250,000 3,557,808
Suffolk, Econ. Dev. Auth. Retirement Fac. Rev. Bonds, (United Church Homes & Svcs. Oblig. Group), 5.00%, 9/1/31 BB/P 500,000 537,975
VA State Cmnwlth. U. Hlth. Syst. Auth. Rev. Bonds, Ser. B, 4.00%, 7/1/40 Aa3 2,000,000 2,057,420
VA State Small Bus. Fin. Auth. Rev. Bonds
(Elizabeth River Crossings OPCO, LLC), 6.00%, 1/1/37 BBB 740,000 819,365
(Express Lanes, LLC), 5.00%, 7/1/34 BBB 1,150,000 1,222,036
Washington Cnty., Indl. Dev. Auth. Hosp. Fac. Rev. Bonds, (Mountain States Hlth. Alliance), Ser. C, 7.75%, 7/1/38 (Prerefunded 1/1/19) A- 1,700,000 1,744,642
18,350,926
Washington (6.1%)
Kalispel Tribe of Indians Priority Dist. Rev. Bonds, Ser. A, 5.25%, 1/1/38 BB+/P 750,000 769,005
Port of Seattle, Rev. Bonds, Ser. C, 5.00%, 4/1/40 A1 625,000 684,525
Port Seattle, Port Indl. Dev. Corp. Rev. Bonds, (Delta Airlines, Inc.), 5.00%, 4/1/30 BBB- 800,000 869,488
Skagit Cnty., Pub. Hosp. Rev. Bonds, (Dist. No. 001), 5.75%, 12/1/35 Baa2 2,500,000 2,632,150
WA State G.O. Bonds (Sr. 520 Corridor-Motor Vehicle Tax), Ser. C, 5%, 6/1/28(T) AA+ 5,000,000 5,411,412
Tobacco Settlement Auth. of WA Rev. Bonds, 5.25%, 6/1/32 A- 1,275,000 1,365,500
WA State GO Bonds, Ser. C, 5%, 2/1/33(T) AA+ 3,400,000 3,986,083
WA State Hlth. Care Fac. Auth. FRN Mandatory Put Bonds (7/1/22), (Fred Hutchinson Cancer Research Ctr.), Ser. B, 2.483%, 1/1/42 A+ 1,700,000 1,724,259
WA State Hlth. Care Fac. Auth. Rev. Bonds
(WA Hlth. Svcs.), 7.00%, 7/1/39 (Prerefunded 7/1/19) Baa1 1,000,000 1,048,590
(Overlake Hosp. Med. Ctr.), Ser. A, 5.00%, 7/1/36 A2 2,145,000 2,399,268
(Central WA Hlth. Svcs. Assn.), 4.00%, 7/1/36 Baa1 810,000 808,947
WA State Hsg. Fin. Comm. Rev. Bonds, (Wesley Homes Lea Hill), 5.00%, 7/1/41 B/P 500,000 518,830
WA State Hsg. Fin. Comm. 144A Rev. Bonds
(Bayview Manor Homes), Ser. A, 5.00%, 7/1/46 BB+/P 1,230,000 1,274,661
(Presbyterian Retirement Cmnty. Northwest), Ser. A, 5.00%, 1/1/36 BB+/F 1,175,000 1,260,810
24,753,528
Wisconsin (2.4%)
Pub. Fin. Auth. Rev. Bonds, (Denver Intl. Arpt. Great Hall), 5.00%, 9/30/37 BBB- 500,000 552,135
Pub. Fin. Auth. Arpt. Fac. Rev. Bonds, (Sr. Oblig. Group), 5.25%, 7/1/28 BBB 350,000 377,258
Pub. Fin. Auth. Exempt Fac. Rev. Bonds, (Celanese U.S. Holdings, LLC), Ser. C, 4.30%, 11/1/30 Baa3 300,000 311,193
Pub. Fin. Auth. Higher Ed. Fac. Rev. Bonds, (Gannon U.)
5.00%, 5/1/47 BBB+ 250,000 267,333
5.00%, 5/1/42 BBB+ 1,090,000 1,169,723
Pub. Fin. Auth. Retirement Fac. Rev. Bonds, (Southminster, Inc.), 5.00%, 10/1/43 BB/F 750,000 797,265
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 1,440,167
(Prohealth Care, Inc.), 6.625%, 2/15/39 (Prerefunded 2/15/19) AAA/P 1,250,000 1,284,550
(St. John's Cmnty., Inc.), Ser. B, 5.00%, 9/15/45 BBB-/F 250,000 260,168
WI State Pub. Fin. Auth Sr. Living Rev. Bonds, (Rose Villa, Inc.), Ser. A, 5.75%, 11/15/44 BB-/P 1,800,000 1,934,100
WI State Pub. Fin. Auth Sr. Living 144A Rev. Bonds, (Mary's Woods at Marylhurst), Ser. A, 5.25%, 5/15/37 BB/F 380,000 415,914
WI State Pub. Fin. Auth. 144A Rev. Bonds, (Church Home of Hartford, Inc.), Ser. A, 5.00%, 9/1/30 BB/F 945,000 991,371
9,801,177
TOTAL INVESTMENTS
Total investments (cost $510,740,364) $530,705,629













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 July 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 $402,235,634.
(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.
(FWC) Forward commitment, in part or in entirety.
(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 $53,271,621 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):
Healthcare 31.9%
Transportation 15.6
Education 15.5
Utilities 14.8
Prerefunded 10.2

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 $51,748,372 were held by the TOB trust and served as collateral for $33,991,161 in floating-rate bonds outstanding. During the reporting period, the fund incurred interest expense of $311,638 for these investments based on an average interest rate of 1.3%.












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 — 530,694,592 11,037
Totals by level $— $530,694,592 $11,037

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.

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: September 27, 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: September 27, 2018

By (Signature and Title):
/s/ Janet C. Smith
Janet C. Smith
Principal Financial Officer
Date: September 27, 2018