a_managedmuniincome.htm


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

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY



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



Item 1. Schedule of Investments:













Putnam Managed Municipal Income Trust

The fund's portfolio
7/31/15 (Unaudited)
Key to holding's abbreviations
ABAG — Association Of Bay Area Governments
AGM — Assured Guaranty Municipal Corporation
AMBAC — AMBAC Indemnity Corporation
COP — Certificates of Participation
FGIC — Financial Guaranty Insurance Company
FHLMC Coll. — Federal Home Loan Mortgage Corporation Collateralized
FNMA Coll. — Federal National Mortgage Association Collateralized
FRB — Floating Rate Bonds: the rate shown is the current interest rate at the close of the reporting period
G.O. Bonds — General Obligation Bonds
GNMA Coll. — Government National Mortgage Association Collateralized
NATL — National Public Finance Guarantee Corp.
Radian Insd. — Radian Group Insured
SGI — Syncora Guarantee, Inc.
U.S. Govt. Coll. — U.S. Government Collateralized
VRDN — Variable Rate Demand Notes, which are floating-rate securities with long-term maturities that carry coupons that reset and are payable upon demand either daily, weekly or monthly. The rate shown is the current interest rate at the close of the reporting period.
MUNICIPAL BONDS AND NOTES (130.4%)(a)
Rating(RAT) Principal amount Value
Alabama (1.3%)
Cullman Cnty., Hlth. Care Auth. Rev. Bonds (Cullman Regl. Med. Ctr.), Ser. A, 6 3/4s, 2/1/29 Ba1 $1,100,000 $1,190,893
Jefferson Cnty., Swr. Rev. Bonds
     Ser. D, 6 1/2s, 10/1/53 BBB- 500,000 574,860
     zero %, 10/1/46 BBB- 3,950,000 2,601,826
Selma, Indl. Dev. Board Rev. Bonds (Gulf Opportunity Zone Intl. Paper Co.), Ser. A, 6 1/4s, 11/1/33 BBB 1,000,000 1,145,120
5,512,699
Arizona (5.3%)
Apache Cnty., Indl. Dev. Auth. Poll. Control Rev. Bonds (Tucson Elec. Pwr. Co.), Ser. A, 4 1/2s, 3/1/30 A3 1,750,000 1,879,553
Casa Grande, Indl. Dev. Auth. Rev. Bonds (Casa Grande Regl. Med. Ctr.)
     Ser. A, 7 5/8s, 12/1/29 (escrow)(F) D/P 1,800,000 5,380
     7 1/4s, 12/1/19 (escrow)(F) D/P 1,000,000 2,989
Coconino Cnty., Poll. Control Rev. Bonds (Tucson Elec. Pwr. Co. - Navajo), Ser. A, 5 1/8s, 10/1/32 A3 2,000,000 2,186,900
Maricopa Cnty., Poll. Control Rev. Bonds (El Paso Elec. Co.), Ser. A, 7 1/4s, 2/1/40 Baa1 2,200,000 2,518,516
Navajo Cnty., Poll. Control Corp. Mandatory Put Bonds (6/1/16) (AZ Pub. Svc. Co. Cholla Pwr. Plant), Ser. E, 5 3/4s, 6/1/34 A2 1,950,000 2,024,139
Phoenix, Indl. Dev. Auth. Ed. Rev. Bonds
     (Great Hearts Academies), 6s, 7/1/32 BB/F 200,000 211,678
     (Choice Academies, Inc.), 5 5/8s, 9/1/42 BB+ 315,000 323,010
     (Choice Academies, Inc.), 5 3/8s, 9/1/32 BB+ 675,000 692,321
     (Great Hearts Academies), 5s, 7/1/44 BB+ 1,975,000 2,003,262
     (BASIS School, Inc.), 5s, 7/1/35 BB 900,000 907,659
     (Choice Academies, Inc.), 4 7/8s, 9/1/22 BB+ 905,000 936,974
Pima Cnty., Indl. Dev. Auth. Rev. Bonds (Horizon Cmnty. Learning Ctr.), 5.05s, 6/1/25 BBB 1,140,000 1,140,205
Salt Verde, Fin. Corp. Gas Rev. Bonds
     5 1/2s, 12/1/29 A- 2,000,000 2,370,320
     5s, 12/1/37 A- 2,000,000 2,205,600
     5s, 12/1/32 A- 570,000 630,893
Tempe, Indl. Dev. Auth. Rev. Bonds (Friendship Village), Ser. A, 6 1/4s, 12/1/42 BB-/P 1,000,000 1,072,550
Yavapai Cnty., Indl. Dev. Ed. Auth. Rev. Bonds (Agribusiness & Equine Ctr.), 5s, 3/1/32 BB+ 1,000,000 1,007,660
Yavapai Cnty., Indl. Dev. Ed. Auth. 144A Rev. Bonds, Ser. A, 5s, 9/1/34 BB+ 500,000 496,940
22,616,549
Arkansas (0.2%)
Arkadelphia, Pub. Ed. Fac. Board Rev. Bonds (Ouachita Baptist U.), 6s, 3/1/33 BB+/P 840,000 870,660
870,660
California (14.7%)
ABAG Fin. Auth. for Nonprofit Corps. Rev. Bonds
     (Episcopal Sr. Cmntys.), 6s, 7/1/31 BBB+/F 660,000 753,746
     (O'Connor Woods), 5s, 1/1/33 AA- 600,000 662,886
CA Muni. Fin. Auth. COP (Cmnty. Hosp. Central CA), 5 1/4s, 2/1/37 (Prerefunded 2/1/17) A- 1,105,000 1,156,095
CA Muni. Fin. Auth. Rev. Bonds
     (U. of La Verne), Ser. A, 6 1/8s, 6/1/30 Baa1 1,000,000 1,144,110
     (Emerson College), 6s, 1/1/42 Baa1 1,000,000 1,185,780
     (Cmnty. Med. Ctrs.), Ser. A, 5s, 2/1/40 A- 750,000 808,733
CA Poll. Control Fin. Auth. Solid Waste Disp. FRB (Waste Management, Inc.), Ser. C, 5 1/8s, 11/1/23 A- 2,150,000 2,194,484
CA School Fin. Auth. Rev. Bonds (2023 Union, LLC), Ser. A, 6s, 7/1/33 BBB- 465,000 514,202
CA State G.O. Bonds
     6 1/2s, 4/1/33 Aa3 5,000,000 5,940,950
     5s, 4/1/42 Aa3 2,000,000 2,231,960
CA State Muni. Fin. Auth. Charter School Rev. Bonds (Partnerships Uplift Cmnty.), Ser. A, 5s, 8/1/32 BB+ 665,000 689,592
CA State Poll. Control Fin. Auth. Rev. Bonds
     (Wtr. Furnishing), 5s, 11/21/45 Baa3 2,000,000 2,097,420
     (Pacific Gas & Electric Corp.), Class D, FGIC, 4 3/4s, 12/1/23 A3 2,500,000 2,643,150
CA State Pub. Wks. Board Rev. Bonds
     (Dept. of Forestry & Fire), Ser. E, 5s, 11/1/32 A1 1,250,000 1,356,625
     (Capital Projects), Ser. A, 5s, 4/1/29 A1 2,000,000 2,273,220
CA Statewide Cmnty. Dev. Auth. COP (The Internext Group), 5 3/8s, 4/1/30 BBB+ 540,000 541,458
CA Statewide Cmnty. Dev. Auth. Rev. Bonds
     (Terraces at San Joaquin Gardens), Ser. A, 6s, 10/1/47 BB/P 1,345,000 1,426,628
     (American Baptist Homes West), 5 3/4s, 10/1/25 BBB+/F 3,000,000 3,349,770
     (U. CA Irvine E. Campus Apts. Phase 1), 5 3/8s, 5/15/38 Baa2 1,000,000 1,102,760
     (899 Charleston, LLC), Ser. A, 5 1/4s, 11/1/44 BB/P 450,000 450,288
     (U. CA Irvine E. Campus Apts. Phase 1), 5 1/8s, 5/15/31 Baa2 2,250,000 2,464,290
Cathedral City, Impt. Board Act of 1915 Special Assmt. Bonds (Cove Impt. Dist.), Ser. 04-02
     5.05s, 9/2/35 BB+/P 1,005,000 1,005,101
     5s, 9/2/30 BB+/P 245,000 245,037
Corona-Norco, School Dist. Pub. Fin. Auth. Special Tax Bonds (Sr. Lien), Ser. A, 5s, 9/1/28 A- 380,000 421,181
Foothill/Eastern Corridor Agcy. Rev. Bonds, Ser. A, 6s, 1/15/53 BBB- 1,500,000 1,738,785
Golden State Tobacco Securitization Corp. Rev. Bonds
     Ser. A-1, 5 3/4s, 6/1/47 B3 1,000,000 849,100
     Ser. A-2, 5.3s, 6/1/37 B3 2,000,000 1,622,300
     Ser. A-1, 5 1/8s, 6/1/47 B3 3,235,000 2,512,139
Irvine Pub. Fac. & Infrastructure Auth. Special Assmt. Bonds, Ser. A, 4 1/4s, 9/2/24 A- 500,000 515,710
Univ. of CA Rev. Bonds, Ser. AF, 5s, 5/15/36(T) AA 7,000,000 7,928,060
La Verne, COP (Brethren Hillcrest Homes), 5s, 5/15/36 BBB-/F 325,000 340,668
Los Angeles, Dept. of Arpt. Rev. Bonds (Los Angeles Intl. Arpt.), 5s, 5/15/30 AA 1,000,000 1,129,640
Los Angeles, Regl. Arpt. Impt. Corp. Lease Rev. Bonds (Laxfuel Corp.), 4 1/2s, 1/1/27 A 400,000 422,764
M-S-R Energy Auth. Rev. Bonds, Ser. A, 6 1/2s, 11/1/39 A- 750,000 981,900
Oakland, Unified School Dist. Alameda Cnty., G.O. Bonds
     (Election of 2012), 6 5/8s, 8/1/38 BBB/P 800,000 969,112
     (Election 2006), Ser. A, 5 1/2s, 8/1/32 BBB/P 500,000 562,840
Poway, Unified School Dist. Pub. Fin. Auth. Special Tax Bonds, 5s, 9/15/32 BBB 495,000 534,674
Rancho Cordova, Cmnty. Fac. Dist. Special Tax Bonds (Sunridge Anatolia), Ser. 03-1, 5s, 9/1/37 BB+/P 350,000 378,067
San Francisco City & Cnty. Arpt. Comm. Intl. Arpt. Rev. Bonds, Ser. A, 5s, 5/1/30 A1 600,000 661,152
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 2,000,000 413,980
     (Mission Bay), Ser. C, zero %, 8/1/38 BBB-/P 2,000,000 560,320
San Francisco, City & Cnty. Redev. Fin. Auth. Tax Alloc. Bonds (Mission Bay South), Ser. D, 6 5/8s, 8/1/39 BBB+ 250,000 283,528
San Joaquin Hills, Trans. Corridor Agcy. Toll Road Rev. Bonds, Ser. A, 5s, 1/15/34 BBB- 920,000 989,506
Santaluz, Cmnty. Fac. Dist. No. 2 Special Tax Bonds (Impt. Area No. 1), Ser. A, 5 1/4s, 9/1/26 (Prerefunded 9/1/21) BBB+ 1,625,000 1,833,293
Sunnyvale, Special Tax Bonds (Cmnty. Fac. Dist. No. 1), 7 3/4s, 8/1/32 B+/P 835,000 836,344
Yucaipa Special Tax Bonds (Cmnty. Fac. Dist. No. 98-1 Chapman Heights), 5 3/8s, 9/1/30 BBB+ 375,000 410,550
63,133,898
Colorado (3.8%)
Central Platte Valley, Metro. Dist. G.O. Bonds, 5s, 12/1/43 BB+ 400,000 410,656
CO Pub. Hwy. Auth. Rev. Bonds (E-470), Ser. C, 5 3/8s, 9/1/26 Baa1 500,000 567,050
CO State Educ. & Cultural Fac. Auth. Rev. Bonds (Skyview Academy), 5 1/8s, 7/1/34 BB+ 755,000 772,025
CO State Hlth. Fac. Auth. Rev. Bonds
     (Christian Living Cmnty.), 6 3/8s, 1/1/41 BB-/P 810,000 857,174
     (Total Longterm Care National), Ser. A, 6 1/4s, 11/15/40 BBB+/F 300,000 329,862
     (Christian Living Cmntys.), Ser. A, 5 3/4s, 1/1/26 BB-/P 1,925,000 1,963,635
     (Evangelical Lutheran Good Samaritan Society), 5 5/8s, 6/1/43 Baa1 250,000 275,103
     (Valley View Assn.), 5 1/4s, 5/15/42 A- 3,495,000 3,674,713
     (Evangelical Lutheran Good Samaritan Society), Ser. A, 5s, 6/1/45 Baa1 1,500,000 1,585,770
     (Covenant Retirement Cmnty.), Ser. A, 5s, 12/1/33 BBB+/F 900,000 944,352
     (Evangelical Lutheran Good Samaritan Society), 5s, 12/1/33 Baa1 1,100,000 1,161,017
E-470 CO Pub. Hwy. Auth. Rev. Bonds, Ser. C1, NATL, 5 1/2s, 9/1/24 AA- 1,000,000 1,003,890
Eaton, Area Park & Recreation Dist. G.O. Bonds, 5 1/4s, 12/1/34 BB/P 220,000 227,407
Plaza, Tax Alloc. Bonds (Metro. Dist. No. 1), 5s, 12/1/40 BB/P 1,650,000 1,657,920
Regl. Trans. Dist. Rev. Bonds (Denver Trans. Partners), 6s, 1/15/41 Baa3 750,000 844,583
16,275,157
Delaware (0.8%)
DE State Econ. Dev. Auth. Rev. Bonds
     (Delmarva Pwr.), 5.4s, 2/1/31 Baa1 500,000 556,685
     (Indian River Pwr.), 5 3/8s, 10/1/45 Baa3 2,600,000 2,813,980
3,370,665
District of Columbia (2.5%)
DC Rev. Bonds
     (Howard U.), Ser. A, 6 1/2s, 10/1/41 BBB 2,500,000 2,647,225
     (Howard U.), Ser. A, 6 1/4s, 10/1/32 BBB 1,000,000 1,075,610
     (Kipp Charter School), 6s, 7/1/33 BBB+ 1,000,000 1,146,770
DC Tobacco Settlement Fin. Corp. Rev. Bonds, Ser. A, zero %, 6/15/46 B-/F 7,500,000 930,600
DC, Rev. Bonds (Methodist Home of The DC (The)), Ser. A, 5 1/4s, 1/1/39 BB-/P 250,000 245,690
Metro. Washington, Arpt. Auth. Dulles Toll Rd. Rev. Bonds
     (Dulles Metrorail), 5s, 10/1/53 Baa1 1,500,000 1,553,100
     (2nd Sr. Lien), Ser. B, zero %, 10/1/40 Baa1 10,000,000 2,852,000
10,450,995
Florida (5.2%)
Capital Trust Agcy Rev. Bonds (Faulk Sr. Svcs., LLC), 6 3/4s, 12/1/44 B-/P 165,000 153,130
Double Branch Cmnty. Dev. Dist. Special Assmt. Bonds (Sr. Lien), Ser. A-1, 4 1/8s, 5/1/31 A- 500,000 500,795
Fishhawk, CCD IV Special Assmt. Bonds, 7 1/4s, 5/1/43 B/P 400,000 431,120
FL Hsg. Fin. Corp. Rev. Bonds, Ser. G, GNMA Coll., FNMA Coll., FHLMC Coll., 5 3/4s, 1/1/37 Aa1 30,000 30,465
Florida State Higher Edl. Fac. Rev. Bonds (U. of Tampa), Ser. A, 5s, 4/1/32 BBB+ 600,000 641,958
Greater Orlando Aviation Auth. Rev. Bonds (JetBlue Airways Corp.), 5s, 11/15/36 B/P 1,000,000 1,017,330
Heritage Harbour Marketplace Cmnty., Dev. Dist. Special Assmt. Bonds, 5.6s, 5/1/36 D/P 335,000 233,190
Jacksonville, Econ. Dev. Comm. Hlth. Care Fac. Rev. Bonds (FL Proton Therapy Inst.), Ser. A, 6s, 9/1/17 BB-/P 260,000 271,193
Jacksonville, Econ. Dev. Comm. Indl. Dev. Rev. Bonds (Gerdau Ameristeel US, Inc.), 5.3s, 5/1/37 Baa3 2,450,000 2,454,998
Lakeland, Hosp. Syst. Rev. Bonds (Lakeland Regl. Hlth.), 5s, 11/15/40 A2 500,000 536,400
Lakeland, Retirement Cmnty. 144A Rev. Bonds (1st Mtge. - Carpenters), 6 3/8s, 1/1/43 BBB-/F 840,000 886,880
Lakewood Ranch, Stewardship Dist. Special Assmt. Bonds, 4 7/8s, 5/1/35 BB-/P 500,000 495,645
Lee Cnty., Indl. Dev. Auth. Hlth. Care Fac. Rev. Bonds
     (Shell Pt./Alliance Oblig. Group), 5 1/8s, 11/15/36 BBB- 1,075,000 1,112,851
     (Shell Pt./Alliance Cmnty.), 5s, 11/15/22 BBB- 1,500,000 1,573,050
Martin Cnty., Rev. Bonds (Indiantown Cogeneration), 4.2s, 12/15/25 Ba1 500,000 506,565
Miami Beach, Hlth. Fac. Auth. Hosp. Rev. Bonds (Mount Sinai Med. Ctr.), 5s, 11/15/29 Baa1 1,000,000 1,096,260
Miami-Dade Cnty., Indl. Dev. Auth. Rev. Bonds (Pinecrest Academy, Inc.), 5s, 9/15/34 BBB- 1,240,000 1,274,658
Midtown Miami Cmnty. Dev. Dist. Special Assmt. Bonds (Garage), Ser. A, 5s, 5/1/29 BB-/P 570,000 600,210
Palm Beach Cnty., Hlth. Fac. Auth. Rev. Bonds (Acts Retirement-Life Cmnty.), 5 1/2s, 11/15/33 BBB+ 2,000,000 2,184,080
Palm Coast Pk. Cmnty. Dev. Dist. Special Assmt. Bonds, 5.7s, 5/1/37 B-/P 470,000 391,270
South Lake Hosp. Dist. Rev. Bonds (South Lake Hosp.), Ser. A, 6s, 4/1/29 Baa1 1,000,000 1,128,600
Southeast Overtown Park West Cmnty. Redev. Agcy. 144A Tax Alloc. Bonds, Ser. A-1, 5s, 3/1/30 BBB+ 480,000 518,472
Tolomato, Cmnty. Dev. Dist. Special Assmt. Bonds, 5.4s, 5/1/37 B-/P 790,000 790,466
Verandah, West Cmnty. Dev. Dist. Special Assmt. Bonds (Cap. Impt.), 5s, 5/1/33 BB-/P 500,000 508,950
Verano Ctr. Cmnty. Dev. Dist. Special Assmt. Bonds (Cmnty. Infrastructure), Ser. A, 5 3/8s, 5/1/37 B-/P 885,000 885,000
Village Cmnty. Dev. Dist. No. 8 Special Assmt. Bonds (Phase II), 6 1/8s, 5/1/39 BB/P 410,000 473,632
Village Cmnty. Dev. Dist. No. 9 Special Assmt. Bonds, 5s, 5/1/22 BBB-/P 455,000 473,846
Village Community Development District No. 10 Special Assmt. Bonds, 5 3/4s, 5/1/31 BB/P 800,000 911,752
22,082,766
Georgia (3.2%)
Atlanta, Wtr. & Waste Wtr. Rev. Bonds, Ser. A, 6 1/4s, 11/1/39 (Prerefunded 11/1/19) Aa3 2,500,000 3,021,350
Clayton Cnty., Dev. Auth. Special Fac. Rev. Bonds (Delta Airlines), Ser. A, 8 3/4s, 6/1/29 BB 3,000,000 3,691,560
Cobb Cnty., Dev. Auth. Student Hsg. Rev. Bonds (Kennesaw State U. Real Estate Oblig. Group), Ser. C, 5s, 7/15/38 Baa2 750,000 784,065
Forsyth Cnty., Hosp. Auth. Rev. Bonds (Baptist Hlth. Care Syst.), U.S. Govt. Coll., 6 1/4s, 10/1/18 (Escrowed to maturity) AA+ 945,000 1,028,311
GA State Private College & U. Auth. Rev. Bonds (Mercer U.)
     Ser. C, 5 1/4s, 10/1/30 Baa2 750,000 823,943
     Ser. A, 5 1/4s, 10/1/27 Baa2 1,000,000 1,103,680
     Ser. A, 5s, 10/1/32 Baa2 1,000,000 1,074,920
Gainesville & Hall Cnty., Devauth Retirement Cmnty. Rev. Bonds (Acts Retirement-Life Cmnty.), Ser. A-2, 6 3/8s, 11/15/29 BBB+ 700,000 801,101
Marietta, Dev. Auth. Rev. Bonds (U. Fac. Life U., Inc.), Ser. PJ, 6 1/4s, 6/15/20 Ba3 815,000 868,146
Rockdale Cnty., Dev. Auth. Rev. Bonds (Visy Paper), Ser. A, 6 1/8s, 1/1/34 BB/P 600,000 614,172
13,811,248
Guam (0.1%)
Territory of GU, Pwr. Auth. Rev. Bonds, Ser. A, 5s, 10/1/34 BBB 200,000 215,404
215,404
Hawaii (1.0%)
HI State Dept. Budget & Fin. Rev. Bonds
     (Craigside), Ser. A, 9s, 11/15/44 B/P 400,000 500,952
     (Hawaiian Elec. Co. - Subsidiary), 6 1/2s, 7/1/39 Baa1 3,000,000 3,429,360
     (Kahala Nui), 5 1/8s, 11/15/32 BBB/F 400,000 431,288
4,361,600
Illinois (6.0%)
Chicago, G.O. Bonds, Ser. B-2, 5 1/2s, 1/1/37 BBB+ 2,000,000 1,938,760
Chicago, Special Assmt. Bonds (Lake Shore East), 6 3/4s, 12/1/32 BB/P 1,615,000 1,617,762
Chicago, Board of Ed. G.O. Bonds, Ser. C, 5 1/4s, 12/1/35 BBB 1,500,000 1,388,655
Chicago, Motor Fuel Tax Rev. Bonds, 5s, 1/1/29 AA+ 500,000 514,845
Chicago, O'Hare Intl. Arpt. Rev. Bonds, Ser. C, 5s, 1/1/26 A2 2,595,000 2,928,094
Chicago, Waste Wtr. Transmission Rev. Bonds (2nd Lien), 5s, 1/1/39 A- 1,360,000 1,396,557
Chicago, Wtr. Wks Rev. Bonds (2nd Lien), 5s, 11/1/39 A- 875,000 903,700
Cicero, G.O. Bonds, Ser. A, AGM, 5s, 1/1/20 AA 1,250,000 1,406,238
Du Page Cnty., Special Svc. Area No. 31 Special Tax Bonds (Monarch Landing)
     5 5/8s, 3/1/36 B/P 350,000 350,994
     5.4s, 3/1/16 B/P 40,000 40,440
IL Fin. Auth. Rev. Bonds
     (Provena Hlth.), Ser. A, 7 3/4s, 8/15/34 BBB+ 1,500,000 1,826,310
     (Silver Cross Hosp. & Med. Ctr.), 7s, 8/15/44 (Prerefunded 8/15/19) AAA/P 2,000,000 2,446,820
     (IL Rush U. Med. Ctr.), Ser. C, U.S. Govt. Coll., 6 5/8s, 11/1/39 (Prerefunded 5/1/19) Aaa 1,075,000 1,287,141
     (Navistar Intl. Recvy. Zone), 6 1/2s, 10/15/40 Caa1 1,500,000 1,585,530
     (Three Crowns Pk. Plaza), Ser. A, 5 7/8s, 2/15/26 BB-/P 1,000,000 1,006,870
     (American Wtr. Cap. Corp.), 5 1/4s, 10/1/39 A 1,575,000 1,661,326
IL State G.O. Bonds, 5s, 3/1/34 A3 750,000 763,418
IL State Fin. Auth. Rev. Bonds (Rush U. Med. Ctr.), Ser. A, 5s, 11/15/38 A1 1,250,000 1,367,200
IL State Sports Fac. Auth. Rev. Bonds, AGM, 5 1/4s, 6/15/32 AA 250,000 273,893
Railsplitter, Tobacco Settlement Auth. Rev. Bonds, 6s, 6/1/28 A- 1,050,000 1,220,121
25,924,674
Indiana (3.3%)
IN State Fin. Auth. Rev. Bonds
     (I-69 Dev. Partners, LLC), 5 1/4s, 9/1/40 BBB- 1,000,000 1,072,260
     (I-69 Dev. Partners, LLC), 5 1/4s, 9/1/34 BBB- 1,250,000 1,360,913
     (OH Valley Elec. Corp.), Ser. A, 5s, 6/1/32 Baa3 750,000 794,813
IN State Fin. Auth. VRDN, Ser. A-3, 0.01s, 2/1/37 VMIG1 1,700,000 1,700,000
IN State Fin. Auth. Edl. Fac. Rev. Bonds (Butler U.), Ser. B
     5s, 2/1/32 BBB+ 1,000,000 1,094,900
     5s, 2/1/29 BBB+ 500,000 555,140
Indianapolis, Arpt. Auth. Rev. Bonds (Federal Express Corp.), 5.1s, 1/15/17 Baa1 3,500,000 3,695,720
Jasper Cnty., Indl. Poll. Control Rev. Bonds
     AMBAC, 5.7s, 7/1/17 Baa1 1,125,000 1,218,296
     NATL, 5.6s, 11/1/16 AA- 700,000 739,445
     Ser. A, NATL, 5.6s, 11/1/16 AA- 500,000 528,175
Valparaiso, Exempt Facs. Rev. Bonds (Pratt Paper, LLC), 6 3/4s, 1/1/34 B+/P 1,125,000 1,357,335
14,116,997
Iowa (2.2%)
IA Fin. Auth. Hlth. Care Fac. Rev. Bonds (Care Initiatives), Ser. A
     5 1/4s, 7/1/17 BB+ 1,040,000 1,073,020
     5s, 7/1/19 BB+ 2,750,000 2,819,603
IA Fin. Auth. Hlth. Fac. Rev. Bonds (Dev. Care Initiatives), Ser. A, 5 1/2s, 7/1/25 BB+ 950,000 968,050
IA State Fin. Auth. Midwestern Disaster Rev. Bonds
     (IA Fertilizer Co., LLC), 5 1/2s, 12/1/22 BB- 1,000,000 1,055,730
     (IA Fertilizer Co.), 5 1/4s, 12/1/25 BB- 1,000,000 1,087,690
Orange Cnty., Hosp. Rev. Bonds, 5 1/2s, 9/1/27 BB/P 1,150,000 1,174,070
Tobacco Settlement Auth. of IA Rev. Bonds, Ser. C, 5 3/8s, 6/1/38 B+ 1,250,000 1,099,938
9,278,101
Kansas (0.1%)
Lenexa, Hlth. Care Fac. Rev. Bonds (LakeView Village), 7 1/8s, 5/15/29 BB/P 500,000 556,465
556,465
Kentucky (1.9%)
KY Econ. Dev. Fin. Auth. Rev. Bonds (Masonic Home Indpt. Living II)
     7 1/4s, 5/15/41 BB-/P 500,000 564,080
     7s, 5/15/30 BB-/P 500,000 564,555
KY Pub. Trans. Infrastructure Auth. Rev. Bonds (1st Tier Downtown Crossing), Ser. A, 6s, 7/1/53 Baa3 1,100,000 1,241,449
KY State Econ. Dev. Fin. Auth. Hlth. Care Rev. Bonds (Masonic Homes of KY), 5 3/8s, 11/15/42 BB-/P 900,000 909,369
Louisville & Jefferson Cnty., Metro. Govt. College Rev. Bonds (Bellarmine U.), Ser. A, 6s, 5/1/28 Baa3 500,000 543,530
Louisville & Jefferson Cnty., Metro. Govt. Hlth. Syst. Rev. Bonds (Norton Healthcare Oblig. Group), 5 1/2s, 10/1/33 A- 3,000,000 3,445,290
Owen Cnty., Wtr. Wks. Syst. Rev. Bonds (American Wtr. Co.), Ser. A, 6 1/4s, 6/1/39 A 700,000 795,641
8,063,914
Louisiana (1.3%)
LA State Local Govt. Env. Fac. & Cmnty. Dev. Auth. Rev. Bonds (Westlake Chemical Corp.), 6 3/4s, 11/1/32 BBB+ 2,200,000 2,418,944
LA State Pub. Fac. Auth. Rev. Bonds (Ochsner Clinic Foundation), 5s, 5/15/47(FWC) Baa1 250,000 266,038
LA State Pub. Fac. Solid Waste Disp. Auth. Rev. Bonds (LA Pellets, Inc.), Ser. A, 8 3/8s, 7/1/39 B-/P 500,000 512,710
Pub. Fac. Auth. Dock & Wharf 144A Rev. Bonds (Impala Warehousing, LLC), 6 1/2s, 7/1/36 B+/P 1,000,000 1,110,690
Rapides, Fin. Auth. FRB (Cleco Pwr.), AMBAC, 4.7s, 11/1/36 A3 750,000 753,443
St. Tammany, Public Trust Fin. Auth. Rev. Bonds (Christwood), 5 1/4s, 11/15/37 BB/P 385,000 386,090
5,447,915
Maine (0.5%)
ME Hlth. & Higher Edl. Fac. Auth. Rev. Bonds
     (ME Gen. Med. Ctr.), 7 1/2s, 7/1/32 Ba2 1,000,000 1,189,950
     (MaineGeneral Health Oblig. Group), 6.95s, 7/1/41 Ba2 1,000,000 1,120,270
2,310,220
Maryland (1.1%)
Baltimore Cnty., Rev. Bonds (Oak Crest Village, Inc. Fac.), Ser. A, 5s, 1/1/37 A- 2,000,000 2,054,400
MD Econ. Dev. Corp. Poll. Control Rev. Bonds (Potomac Electric Power Co.), 6.2s, 9/1/22 A2 550,000 640,206
Westminster, Rev. Bonds
     (Lutheran Village at Miller's Grant, Inc. (The)), Ser. A, 6s, 7/1/34 B-/P 250,000 264,280
     (Carroll Lutheran Village, Inc.), 5 1/8s, 7/1/34 BB/P 1,500,000 1,554,735
4,513,621
Massachusetts (6.4%)
MA State Dev. Fin. Agcy. Rev. Bonds
     (Sabis Intl.), Ser. A, 8s, 4/15/39 BBB 690,000 797,882
     (Linden Ponds, Inc. Fac.), Ser. A-1, 6 1/4s, 11/15/46 B-/P 450,850 423,808
     (Linden Ponds, Inc. Fac.), Ser. A-1, 6 1/4s, 11/15/26 B-/P 275,400 271,434
     (Boston U.), SGI, 6s, 5/15/59 A1 500,000 612,895
     (Loomis Cmntys.), Ser. A, 6s, 1/1/33 BBB- 200,000 221,226
     (Linden Ponds, Inc. Fac.), Ser. A-2, 5 1/2s, 11/15/46 B-/P 88,265 74,358
     (New England Conservatory of Music), U.S. Govt. Coll., 5 1/4s, 7/1/38 (Prerefunded 7/1/18) AAA/P 805,000 902,727
     (Wheelock College), Ser. C, 5 1/4s, 10/1/29 BBB 1,700,000 1,806,301
     (Emerson College), Ser. A, 5s, 1/1/40 Baa1 1,000,000 1,048,640
     (First Mtge. - Orchard Cove), 5s, 10/1/19 BB/P 550,000 565,483
     (Linden Ponds, Inc. Fac.), Ser. B, zero %, 11/15/56 B-/P 439,022 2,656
MA State Dev. Fin. Agcy. Hlth. Care Fac. 144A Rev. Bonds (Adventcare), Ser. A, 6.65s, 10/15/28 B/P 1,050,000 1,082,403
MA State Dev. Fin. Agcy. Solid Waste Disp. FRB (Dominion Energy Brayton), Ser. 1, U.S. Govt. Coll., 5 3/4s, 12/1/42 (Prerefunded 5/1/19) BBB+ 1,050,000 1,227,923
MA State Edl. Fin. Auth. Rev. Bonds, Ser. B, 5 1/2s, 1/1/23 AA 530,000 574,642
MA State Hlth. & Edl. Fac. Auth. Rev. Bonds
     (Jordan Hosp.), Ser. E, 6 3/4s, 10/1/33 B+ 2,550,000 2,558,747
     (Suffolk U.), Ser. A, 6 1/4s, 7/1/30 Baa2 1,000,000 1,147,920
     (Quincy Med. Ctr.), Ser. A, 6 1/4s, 1/15/28 (In default)(NON) D/P 330,776 33
     (Suffolk U.), Ser. A, U.S. Govt. Coll., 5 3/4s, 7/1/39 (Prerefunded 7/1/19) Baa2 950,000 1,063,430
     (Baystate Med. Ctr.), Ser. I, 5 3/4s, 7/1/36 A+ 1,500,000 1,694,610
     (Springfield College), 5 5/8s, 10/15/40 Baa1 450,000 487,890
     (Springfield College), 5 1/2s, 10/15/31 Baa1 1,100,000 1,195,810
     (Springfield College), 5 1/2s, 10/15/26 Baa1 1,500,000 1,655,415
     (Fisher College), Ser. A, 5 1/8s, 4/1/37 BBB- 250,000 255,415
     (Emerson Hosp.), Ser. E, Radian Insd., 5s, 8/15/25 AA 1,500,000 1,504,485
     (Milford Regl. Med.), Ser. E, 5s, 7/15/22 Baa3 2,200,000 2,296,888
MA State Port Auth. Special Fac. Rev. Bonds (Conrac), Ser. A, 5 1/8s, 7/1/41 A 750,000 804,150
Metro. Boston, Trans. Pkg. Corp. Rev. Bonds
     (Systemwide Pkg.), 5 1/4s, 7/1/33 A1 1,500,000 1,701,330
     5s, 7/1/41 A1 1,500,000 1,656,945
27,635,446
Michigan (5.4%)
Detroit, Wtr. Supply Syst. Rev. Bonds, Ser. B, AGM, 6 1/4s, 7/1/36 AA 1,660,000 1,798,726
Flint, Hosp. Bldg. Auth. Rev. Bonds, Ser. A, 5 1/4s, 7/1/39 Ba1 750,000 734,955
Kentwood, Economic Dev. Rev. Bonds (Holland Home), 5 5/8s, 11/15/32 BB+/F 2,195,000 2,315,418
MI State Fin. Auth. Rev. Bonds
     (Presbyterian Villages of MI), 5 1/2s, 11/15/45 BB+/F 500,000 497,035
     (Detroit Wtr. & Swr.), Ser. C-6, 5s, 7/1/33 BBB+ 600,000 631,236
MI State Hosp. Fin. Auth. Rev. Bonds
     Ser. A, 6 1/8s, 6/1/39 (Prerefunded 6/1/19) AA+ 2,000,000 2,363,580
     (Henry Ford Hlth.), 5 3/4s, 11/15/39 A3 1,600,000 1,808,960
     (Henry Ford Hlth. Syst.), Ser. A, 5 1/4s, 11/15/46 A3 2,565,000 2,630,510
MI State Strategic Fund Ltd. Rev. Bonds (Worthington Armstrong Venture), 5 3/4s, 10/1/22 (Escrowed to maturity) AAA/P 1,350,000 1,621,094
MI State Strategic Fund Ltd. Oblig. Rev. Bonds (Cadillac Place Office Bldg.), 5 1/4s, 10/15/26 A1 1,250,000 1,463,288
MI Tobacco Settlement Fin. Auth. Rev. Bonds, Ser. A, 6s, 6/1/48 B- 4,000,000 3,329,320
Monroe Cnty., Hosp. Fin. Auth. Rev. Bonds (Mercy Memorial Hosp.), 5 1/2s, 6/1/20 AA- 1,480,000 1,536,506
Wayne Cnty., Arpt. Auth. Rev. Bonds, Ser. A, 5s, 12/1/21 A2 2,000,000 2,280,600
23,011,228
Minnesota (2.9%)
Douglas Cnty., Gross Hlth. Care Fac. Rev. Bonds (Douglas Cnty. Hosp.)
     6 1/4s, 7/1/34 (Prerefunded 7/1/18) AAA/P 1,940,000 2,230,942
     6 1/4s, 7/1/34 (Prerefunded 7/1/18) AAA/P 1,060,000 1,218,968
Inver Grove Heights, Nursing Home Rev. Bonds (Presbyterian Homes Care), 5 3/8s, 10/1/26 B/P 700,000 700,252
North Oaks, Sr. Hsg. Rev. Bonds (Presbyterian Homes North Oaks), 6 1/8s, 10/1/39 BB/P 315,000 331,204
Northfield, Hosp. Rev. Bonds, 5 3/8s, 11/1/26 BBB 750,000 784,103
Otsego, Charter School Lease Rev. Bonds (Kaleidoscope Charter School), Ser. A, 5s, 9/1/34 BB+ 800,000 809,280
Rochester, Hlth. Care Fac. Rev. Bonds (Olmsted Med. Ctr.), 5 7/8s, 7/1/30 A-/F 1,000,000 1,161,900
Sartell, Hlth. Care & Hsg. Facs. Rev. Bonds (Country Manor Campus, LLC)
     5 1/4s, 9/1/30 B-/P 500,000 519,110
     5 1/4s, 9/1/27 B-/P 750,000 789,758
Sauk Rapids Hlth. Care & Hsg. Fac. Rev. Bonds (Good Shepherd Lutheran Home), 7 1/2s, 1/1/39 (Prerefunded 1/1/16) AAA/P 500,000 514,600
St. Paul, Hsg. & Redev. Auth. Charter School Lease Rev. Bonds (Nova Classical Academy), Ser. A
     6 5/8s, 9/1/42 BBB- 250,000 280,338
     6 3/8s, 9/1/31 BBB- 250,000 287,530
St. Paul, Hsg. & Redev. Auth. Hosp. Rev. Bonds (Healtheast), 6s, 11/15/35 (Prerefunded 11/15/15) BBB- 1,350,000 1,371,884
St. Paul, Hsg. & Redev. Auth. Hosp. Fac. Rev. Bonds (Healtheast Care Syst.), Ser. A, 5s, 11/15/40 BBB- 300,000 312,717
St. Paul, Port Auth. Lease Rev. Bonds (Regions Hosp. Pkg. Ramp), Ser. 1, 5s, 8/1/36 A-/P 1,125,000 1,127,576
12,440,162
Mississippi (0.4%)
Warren Cnty., Gulf Opportunity Zone Rev. Bonds (Intl. Paper Co.), Ser. A, 6 1/2s, 9/1/32 Baa2 1,600,000 1,811,424
1,811,424
Missouri (0.6%)
Kansas City, Indl. Dev. Auth. Hlth. Fac. Rev. Bonds (First Mtge. Bishop Spencer), Ser. A, 6 1/2s, 1/1/35 B/P 1,500,000 1,491,705
St. Louis Arpt. Rev. Bonds (Lambert-St. Louis Intl.), Ser. A-1, 6 5/8s, 7/1/34 A3 1,000,000 1,178,680
2,670,385
Montana (0.1%)
MT Fac. Fin. Auth. Rev. Bonds (Sr. Living St. John's Lutheran), Ser. A, 6s, 5/15/25 B+/P 500,000 510,565
510,565
Nebraska (0.8%)
Central Plains, Energy Rev. Bonds (NE Gas No. 1), Ser. A, 5 1/4s, 12/1/18 A3 1,500,000 1,651,830
Lancaster Cnty., Hosp. Auth. Rev. Bonds (Immanuel Oblig. Group), 5 1/2s, 1/1/30 AA/F 1,000,000 1,134,220
NE Pub. Pwr. Dist. Rev. Bonds, Ser. A
     5s, 1/1/39 A1 250,000 274,958
     5s, 1/1/38 A1 250,000 275,718
3,336,726
Nevada (1.2%)
Clark Cnty., Arpt. Rev. Bonds, Ser. A-2, 5s, 7/1/33 A1 1,050,000 1,173,848
Clark Cnty., Impt. Dist. Special Assmt. Bonds
     (Mountains Edge Local No. 142), 5s, 8/1/21 BBB- 585,000 631,385
     (Summerlin No. 151), 5s, 8/1/20 BB/P 400,000 400,000
     (Summerlin No. 151), 5s, 8/1/16 BB/P 945,000 945,000
Henderson, Local Impt. Dist. Special Assmt. Bonds
     (No. T-17), 5s, 9/1/18 BB+/P 355,000 365,970
     (No. T-18), 5s, 9/1/16 B-/P 715,000 713,091
Las Vegas, Special Assmt. Bonds
     5s, 6/1/31 B+/P 450,000 452,840
     (Dist. No. 607 Local Impt.), 5s, 6/1/23 BBB-/P 420,000 449,698
5,131,832
New Hampshire (1.8%)
NH Hlth. & Ed. Fac. Auth. Rev. Bonds
     (Rivermead), Ser. A, 6 7/8s, 7/1/41 BB+/P 2,000,000 2,243,840
     (Rivermead), Ser. A, 6 5/8s, 7/1/31 BB+/P 1,320,000 1,488,023
     (Kendal at Hanover), Ser. A, 5s, 10/1/18 BBB+ 1,875,000 1,879,669
NH State Bus. Fin. Auth. Rev. Bonds (Elliot Hosp. Oblig. Group), Ser. A, 6s, 10/1/27 Baa1 1,700,000 1,922,632
NH State Bus. Fin. Auth. Solid Waste Disp. 144A Mandatory Put Bonds (10/1/19) (Casella Waste Syst., Inc.), 4s, 4/1/29 B1 350,000 351,985
7,886,149
New Jersey (8.2%)
Burlington Cnty., Bridge Comm. Econ. Dev. Rev. Bonds (The Evergreens), 5 5/8s, 1/1/38 BB+/P 2,200,000 2,258,564
NJ State Econ. Dev. Auth. Rev. Bonds
     (Ashland School, Inc.), 6s, 10/1/33 BBB 1,000,000 1,130,520
     (NYNJ Link Borrower, LLC), 5 3/8s, 1/1/43 BBB- 1,000,000 1,071,480
     (MSU Student Hsg. - Provident Group - Montclair LLC), 5 3/8s, 6/1/25 Baa3 2,000,000 2,226,900
     (Lions Gate), 5 1/4s, 1/1/44 BB-/P 300,000 305,286
     (Continental Airlines, Inc.), 5 1/4s, 9/15/29 BB- 3,000,000 3,262,350
     (United Methodist Homes), Ser. A, 5s, 7/1/29 BBB-/F 500,000 526,785
     5s, 6/15/26 Baa1 500,000 541,565
NJ State Econ. Dev. Auth. Fac. Rev. Bonds (Continental Airlines, Inc.), 5 5/8s, 11/15/30 BB- 1,500,000 1,693,230
NJ State Econ. Dev. Auth. Retirement Cmnty. Rev. Bonds (Seabrook Village, Inc.), 5 1/4s, 11/15/36 BB-/P 860,000 869,357
NJ State Econ. Dev. Auth. Wtr. Fac. Rev. Bonds (NJ American Wtr. Co.)
     Ser. A, 5.7s, 10/1/39 A1 2,600,000 2,930,746
     Ser. D, 4 7/8s, 11/1/29 A1 700,000 745,325
NJ State Hlth. Care Fac. Fin. Auth. Rev. Bonds
     (St. Joseph Hlth. Care Syst.), 6 5/8s, 7/1/38 Baa3 2,250,000 2,506,478
     (St. Peter's U. Hosp.), 6 1/4s, 7/1/35 Ba1 2,000,000 2,183,980
     (Holy Name Hosp.), 5s, 7/1/36 Baa2 2,500,000 2,549,900
North Hudson, Swr. Auth. Rev. Bonds, Ser. A, 5s, 6/1/42 A- 1,000,000 1,073,950
Tobacco Settlement Fin. Corp. Rev. Bonds
     Ser. 1A, 5s, 6/1/41 B3 5,000,000 3,750,500
     Ser. 1A, 4 3/4s, 6/1/34 B3 2,210,000 1,649,014
     zero %, 6/1/41 A- 10,000,000 2,512,400
Union Cnty., Util. Auth. Resource Recvy. Fac. Lease Rev. Bonds (Covanta Union), Ser. A, 5 1/4s, 12/1/31 AA+ 1,450,000 1,557,822
35,346,152
New Mexico (1.7%)
Farmington, Poll. Control Rev. Bonds
     (Public Service Co. of NM San Juan), Ser. D, 5.9s, 6/1/40 Baa2 500,000 550,695
     (San Juan), Ser. B, 4 7/8s, 4/1/33 Baa2 4,500,000 4,584,735
     (AZ Pub. Svc. Co.), Ser. B, 4.7s, 9/1/24 A2 2,000,000 2,192,060
7,327,490
New York (9.6%)
Broome Cnty., Indl. Dev. Agcy. Continuing Care Retirement Rev. Bonds (Good Shepard Village), Ser. A, 6 3/4s, 7/1/28 (Prerefunded 7/1/18) AAA/P 600,000 699,114
Nassau Cnty., Indl. Dev. Agcy. Rev. Bonds (Keyspan-Glenwood), 5 1/4s, 6/1/27 A- 2,775,000 2,783,436
NY City, Indl. Dev. Agcy. Special Fac. Mandatory Put Bonds (8/1/16) (JFK Intl. Arpt.), Ser. B, 2s, 8/1/28 BB/P 1,000,000 1,002,050
NY City, Indl. Dev. Agcy. Special Fac. Rev. Bonds
     (American Airlines - JFK Intl. Arpt.), 7 1/2s, 8/1/16 B+/P 815,000 839,923
     (British Airways PLC), 5 1/4s, 12/1/32 BB 3,425,000 3,442,091
NY City, Muni. Wtr. & Swr. Fin. Auth. Rev. Bonds, 5s, 6/15/31(T) AA+ 10,000,000 11,449,500
NY State Dorm. Auth. Rev. Bonds, Ser. A, 5s, 3/15/38 AAA 1,500,000 1,697,295
NY State Dorm. Auth. Non-State Supported Debt Rev. Bonds (Orange Regl. Med. Ctr.), 6 1/4s, 12/1/37 Ba1 725,000 793,411
NY State Dorm. Auth. Non-Supported Debt Rev. Bonds (NYU Hosp. Ctr.), 5s, 7/1/34 A3 500,000 554,120
NY State Dorm. Auth. Revs. bonds, Ser. C, 5s, 3/15/31(T) AAA 5,000,000 5,709,042
NY State Energy Research & Dev. Auth. Gas Fac. Rev. Bonds (Brooklyn Union Gas), 6.952s, 7/1/26 A2 3,800,000 3,811,856
NY State Env. Fac. Corp. Solid Waste Disp. 144A Mandatory Put Bonds (12/2/19) (Casella Waste Syst., Inc.), 3 3/4s, 12/1/44 B1 1,000,000 998,700
NY State Liberty Dev. Corp. 144A Rev. Bonds (World Trade Ctr.)
     Class 2, 5 3/8s, 11/15/40 BB-/P 750,000 786,510
     Class 1, 5s, 11/15/44 BB-/P 2,250,000 2,268,113
Onondaga, Civic Dev. Corp. Rev. Bonds (St. Joseph's Hosp. Hlth. Ctr.), 5 1/8s, 7/1/31 Ba2 1,620,000 1,736,672
Port Auth. NY & NJ Special Oblig. Rev. Bonds (JFK Intl. Air Term.), 6s, 12/1/42 Baa3 1,000,000 1,161,870
Port Auth. of NY & NJ Rev. Bonds (Kennedy Intl. Arpt. - 5th Installment), 6 3/4s, 10/1/19 BB+/P 155,000 155,020
Syracuse, Indl. Dev. Agcy. Civic Fac. VRDN (Syracuse U. ), Ser. A-1, 0.01s, 7/1/37 VMIG1 1,450,000 1,450,000
41,338,723
North Carolina (2.1%)
Dept. Trans. Private Activity Rev. Bonds (I-77 Hot Lanes), 5s, 12/31/37 BBB-/F 300,000 317,772
NC Eastern Muni. Pwr. Agcy. Syst. Rev. Bonds, Ser. C, 6 3/4s, 1/1/24 (Prerefunded 1/1/19) A- 750,000 892,358
NC State Med. Care Cmnty. Hlth. Care Fac. Rev. Bonds
     (Presbyterian Homes), 5.4s, 10/1/27 BB/P 2,000,000 2,049,900
     (First Mtge. - Presbyterian Homes), 5 3/8s, 10/1/22 BB/P 1,110,000 1,150,215
NC State Med. Care Comm. Hlth. Fac. Rev. Bonds (Pennybyrn at Maryfield, Inc.), 5s, 10/1/35 BB/P 375,000 384,390
NC State Med. Care Comm. Retirement Fac. Rev. Bonds
     (Carolina Village), 6s, 4/1/38 BB/P 1,000,000 1,049,920
     (First Mtge.), Ser. A-05, 5 1/2s, 10/1/35 BB+/P 1,730,000 1,730,986
     (First Mtge.), Ser. A-05, 5 1/4s, 10/1/25 BB+/P 95,000 95,078
     (Forest at Duke), 5 1/8s, 9/1/27 BBB+/F 1,000,000 1,029,760
     (United Church Homes & Svcs. Oblig. Group), Ser. A, 5s, 9/1/37 BB/P 500,000 496,675
9,197,054
Ohio (4.6%)
Buckeye, Tobacco Settlement Fin. Auth. Rev. Bonds
     Ser. A-3, 6 1/4s, 6/1/37 B- 850,000 715,887
     Ser. A-2, 6s, 6/1/42 B3 2,500,000 2,025,250
     Ser. A-2, 5 7/8s, 6/1/30 B- 1,315,000 1,083,652
     Ser. A-2, 5 3/4s, 6/1/34 B- 3,675,000 2,916,113
Franklin Cnty., Hlth. Care Fac. Rev. Bonds (Presbyterian Svcs.), Ser. A, 5 5/8s, 7/1/26 BBB- 2,750,000 2,994,393
Hickory Chase Cmnty. Auth. Rev. Bonds (Infrastructure Impt.), 7s, 12/1/38(F) CCC/P 644,000 77,216
Lake Cnty., Hosp. Fac. Rev. Bonds (Lake Hosp. Syst.), Ser. C, 5 5/8s, 8/15/29 (Prerefunded 8/15/18) A3 1,530,000 1,697,872
Lorain Cnty., Port Auth. Recovery Zone Fac. Rev. Bonds (U.S. Steel Corp.), 6 3/4s, 12/1/40 BB- 1,000,000 1,107,350
Northeast Regl. Swr. Dist. Rev. Bonds, 5s, 11/15/39 Aa1 1,500,000 1,704,870
OH State Air Quality Dev. Auth., Poll. Control Mandatory Put Bonds (5/1/20) (FirstEnergy Nuclear), Ser. C, 3.95s, 11/1/32 Baa3 450,000 453,272
OH State Higher Edl. Fac. Comm. Rev. Bonds (Kenyon College), 5s, 7/1/44 A1 800,000 859,232
OH State Private Activity Rev. Bonds (Portsmouth Bypass), AGM, 5s, 12/31/35 AA 750,000 819,143
OH State Wtr. Dev. Auth. Poll. Control Mandatory Put Bonds (6/3/19) (FirstEnergy Nuclear Generation, LLC), 4s, 12/1/33 Baa3 1,550,000 1,601,073
Southeastern OH Port Auth. Hosp. Fac. Rev. Bonds
     5 3/4s, 12/1/32 BB/F 900,000 961,353
     (Memorial Hlth. Syst.), 5s, 12/1/43 BB/F 150,000 150,767
Toledo-Lucas Cnty., Port Auth. Rev. Bonds (CSX Transn, Inc.), 6.45s, 12/15/21 Baa1 500,000 614,350
19,781,793
Oklahoma (0.9%)
OK Hsg. Fin. Agcy. Single Fam. Mtge. Rev. Bonds (Homeownership Loan), Ser. C, GNMA Coll., FNMA Coll., 5.95s, 3/1/37 Aaa 360,000 361,069
Tulsa Cnty., Indl. Auth. Rev. Bonds (Sr. Living Cmnty. Montereau, Inc.), Ser. A, 7 1/8s, 11/1/30 BB-/P 1,250,000 1,363,463
Tulsa, Muni. Arpt. Trust Mandatory Put Bonds (6/1/25) (American Airlines, Inc.), 5s, 6/1/35 BB- 750,000 812,918
Tulsa, Muni. Arpt. Trust Rev. Bonds (American Airlines, Inc.), Ser. B, 5 1/2s, 12/1/35 B+/P 1,250,000 1,332,425
3,869,875
Oregon (0.4%)
Multnomah Cnty., Hosp. Fac. Auth. Rev. Bonds
     (Mirabella at South Waterfront), Ser. A, 5.4s, 10/1/44 BB-/P 500,000 543,205
     (Terwilliger Plaza, Inc.), 5s, 12/1/29 BBB/F 350,000 371,322
Warm Springs Reservation, Confederated Tribes 144A Rev. Bonds (Pelton Round Butte Tribal), Ser. B, 6 3/8s, 11/1/33 A3 700,000 774,235
1,688,762
Pennsylvania (5.4%)
Allegheny Cnty., Higher Ed. Bldg. Auth. Rev. Bonds (Robert Morris U.), Ser. A, 5 1/2s, 10/15/30 Baa3 1,000,000 1,079,390
Allegheny Cnty., Indl. Dev. Auth. Rev. Bonds (U.S. Steel Corp.), 6 3/4s, 11/1/24 BB- 1,500,000 1,675,365
Chester Cnty., Indl. Dev. Auth. Rev. Bonds (Renaissance Academy Charter School), 5s, 10/1/34 BBB- 350,000 371,903
Chester Cnty., Indl. Dev. Auth. Student Hsg. Rev. Bonds (West Chester U. Student Hsg., LLC), Ser. A, 5s, 8/1/45 Baa3 1,000,000 1,029,180
Lancaster Cnty., Hosp. Auth. Rev. Bonds (Brethren Village), Ser. A, 6 3/8s, 7/1/30 BB-/P 625,000 647,063
Lycoming Cnty., Auth. Hlth. Syst. Rev. Bonds (Susquehanna Hlth. Syst.), Ser. A, 5 3/4s, 7/1/39 A- 3,000,000 3,200,250
Moon, Indl. Dev. Auth. Rev. Bonds (Baptist Homes Society Oblig. Group), 5 3/4s, 7/1/35 B+/P 1,500,000 1,472,895
Northampton Cnty., Hosp. Auth. Mandatory Put Bonds (8/15/16) (Saint Luke's Hosp.), Ser. C, 4 1/2s, 8/15/32 A3 1,500,000 1,550,145
Northampton Cnty., Indl. Dev. Auth. Tax Alloc. Bonds (Rte. 33), 7s, 7/1/32 B/P 800,000 864,336
PA State Econ. Dev. Fin. Auth. Resource Recvy. Rev. Bonds (Colver), Ser. F, AMBAC, 5s, 12/1/15 BBB- 1,650,000 1,671,203
PA State Higher Edl. Fac. Auth. Rev. Bonds
     (Shippensburg U.), 6 1/4s, 10/1/43 Baa3 500,000 557,930
     (Edinboro U. Foundation), 5.8s, 7/1/30 Baa3 1,000,000 1,062,940
     (Gwynedd Mercy College), Ser. KK1, 5 3/8s, 5/1/42 BBB 785,000 832,445
     (Indiana U.), Ser. A, 5s, 7/1/41 BBB+ 500,000 523,135
PA State Tpk. Comm. Rev. Bonds
     Ser. C, 5s, 12/1/44 A1 1,000,000 1,099,180
     Ser. A, 5s, 12/1/38 A1 500,000 554,160
Philadelphia, Auth. for Indl. Dev. Rev. Bonds (Master Charter School), 6s, 8/1/35 BBB+ 1,055,000 1,151,564
Philadelphia, Gas Wks. Rev. Bonds, Ser. 9, 5s, 8/1/30 A- 1,000,000 1,101,280
Philadelphia, Hosp. & Higher Ed. Fac. Auth. Rev. Bonds (Graduate Hlth. Syst.), 7 1/4s, 8/1/17 (In default)(NON) D/P 2,583,821 258
Susquehanna, Area Regl. Arpt. Syst. Auth. Rev. Bonds, Ser. A, 6 1/2s, 1/1/38 Baa3 1,325,000 1,415,286
West Shore Area Auth. Rev. Bonds (Lifeways at Messiah Village), Ser. A, 5s, 7/1/35 BBB-/F 785,000 818,614
Wilkes-Barre, Fin. Auth. Rev. Bonds (Wilkes U.), 5s, 3/1/22 BBB 560,000 587,826
23,266,348
Puerto Rico (1.0%)
Children's Trust Fund Tobacco Settlement (The) Rev. Bonds (Asset Backed Bonds), 5 5/8s, 5/15/43 Ba2 1,300,000 1,304,459
Cmnwlth. of PR, G.O. Bonds
     Ser. A, FGIC, 5 1/2s, 7/1/21 Caa3 1,000,000 750,080
     (Pub. Impt.), Ser. A, NATL, 5 1/2s, 7/1/20 AA- 1,000,000 996,260
Cmnwlth. of PR, Sales Tax Fin. Corp. Rev. Bonds
     Ser. A, 5 3/8s, 8/1/39 CCC- 2,300,000 897,000
     Ser. C, 5 3/8s, 8/1/36 CCC- 530,000 206,700
     Ser. A, AMBAC, zero %, 8/1/47 Caa3 3,000,000 329,340
4,483,839
South Carolina (1.6%)
Georgetown Cnty., Env. Impt. Rev. Bonds (Intl. Paper Co.), Ser. A, 5s, 8/1/30 Baa2 1,135,000 1,137,281
SC State Pub. Svc. Auth. Rev. Bonds
     (Santee Cooper), Ser. A, 5 3/4s, 12/1/43 AA- 3,000,000 3,533,310
     Ser. A, 5 1/2s, 12/1/54 AA- 2,000,000 2,238,400
6,908,991
Tennessee (0.4%)
Johnson City, Hlth. & Edl. Fac. Board Hosp. Rev. Bonds (Mountain States Hlth. Alliance), 6s, 7/1/38 Baa1 1,450,000 1,631,511
1,631,511
Texas (12.7%)
Brazos, Harbor Indl. Dev. Corp. Env. Fac. Mandatory Put Bonds (5/1/28) (Dow Chemical), 5.9s, 5/1/38 BBB 3,735,000 4,038,021
Central TX Regl. Mobility Auth. Rev. Bonds (Sr. Lien), Ser. A, 5s, 1/1/33 Baa2 525,000 570,255
Clifton, Higher Ed. Fin. Corp. Rev. Bonds (Idea Pub. Schools)
     6s, 8/15/33 BBB 500,000 582,255
     5s, 8/15/32 BBB 315,000 336,316
Grand Parkway Trans. Corp. Rev. Bonds, Ser. B, 5 1/4s, 10/1/51 AA+ 2,000,000 2,234,309
Harris Cnty., Cultural Ed. Fac. Fin. Corp. Rev. Bonds (YMCA of Greater Houston), Ser. A, 5s, 6/1/33 Baa3 1,000,000 1,061,710
Harris Cnty., Cultural Ed. Fac. Fin. Corp. VRDN (The Methodist Hosp.), Ser. C-1, 0.01s, 12/1/24 A-1+ 350,000 350,000
Houston, Arpt. Syst. Rev. Bonds
     Ser. B-1, 5s, 7/15/35 BB- 2,500,000 2,577,000
     Ser. A, 5s, 7/1/24 A 1,500,000 1,699,380
     (United Airlines, Inc.), 4 3/4s, 7/1/24 BB- 1,300,000 1,382,394
La Vernia, Higher Ed. Fin. Corp. Rev. Bonds (Kipp, Inc.), Ser. A
     6 3/8s, 8/15/44 (Prerefunded 8/15/19) BBB 1,100,000 1,314,060
     6 1/4s, 8/15/39 (Prerefunded 8/15/19) BBB 1,975,000 2,349,717
La Vernia, Higher Ed. Fin. Corp. 144A Rev. Bonds (Meridian World School, LLC), Ser. A, 5 1/4s, 8/15/35 BB+ 1,000,000 996,300
Love Field, Arpt. Modernization Corp. Special Fac. Rev. Bonds (Southwest Airlines Co.), 5 1/4s, 11/1/40 Baa1 3,500,000 3,785,460
Matagorda Cnty., Poll. Control Rev. Bonds
     (Central Pwr. & Light Co.), Ser. A, 6.3s, 11/1/29 Baa1 1,000,000 1,130,600
     (Dist. No. 1), Ser. A, AMBAC, 4.4s, 5/1/30 Baa1 1,250,000 1,312,325
New Hope, Cultural Ed. Fac. Fin. Corp. Rev. Bonds
     (Wesleyan Homes, Inc.), 5 1/2s, 1/1/43 BB-/P 500,000 502,525
     (NCCD College Station Properties, LLC), Ser. A, 5s, 7/1/47 Baa3 500,000 512,945
     (Collegiate Hsg.-Tarleton St.), 5s, 4/1/39 Baa3 500,000 513,040
     (TX A&M U. Collegiate & Student Hsg. College Station I, LLC), Ser. A, 5s, 4/1/29 Baa3 530,000 565,229
Newark, Cultural Ed. Fac. Fin. Corp. Rev. Bonds (AW Brown-Fellowship Leadership Academy), Ser. A, 6s, 8/15/42 BBB- 670,000 691,460
North Texas Edl. Fin. Co. Rev. Bonds (Uplift Edl.), Ser. A, 5 1/4s, 12/1/47 BBB- 2,000,000 2,160,260
North TX, Tollway Auth. Rev. Bonds
     (1st Tier), Ser. A, 6s, 1/1/25 A2 120,000 133,072
     (1st Tier), Ser. A, FNMA Coll., U.S. Govt. Coll., 6s, 1/1/25 (Prerefunded 1/1/18) AAA/P 880,000 989,252
     (Toll 2nd Tier), Ser. F, 5 3/4s, 1/1/38 (Prerefunded 1/1/18) A3 1,750,000 1,956,850
Red River, Hlth. Retirement Fac. Dev. Corp. Rev. Bonds
     (Happy Harbor Methodist Home, Inc.), Ser. A, 7 3/4s, 11/15/44 B-/P 420,000 487,570
     (Sears Methodist Retirement Syst. Oblig. Group), Ser. C, 6 1/4s, 5/9/53 (In default)(NON) D/P 39,000 215
     (Sears Methodist Retirement Syst. Oblig. Group), Ser. B, 6.15s, 11/15/49 (In default)(NON) D/P 749,000 4,120
     (Sears Methodist Retirement Syst. Oblig. Group), Ser. A, 6.05s, 11/15/46 (In default)(NON) D/P 441,000 2,426
     (Sears Methodist Retirement Syst. Oblig. Group), Ser. D, 6.05s, 11/15/46 (In default)(NON) D/P 76,000 418
     (Sears Methodist Retirement Syst. Oblig. Group), Ser. A, 5.45s, 11/15/38 (In default)(NON) D/P 1,124,000 6,182
     (Sears Methodist Retirement Syst. Oblig. Group), Ser. A, 5.15s, 11/15/27 (In default)(NON) D/P 593,000 3,262
Tarrant Cnty., Cultural Ed. Fac. Fin. Corp. Retirement Fac. Rev. Bonds
     (Sr. Living Ctr.), Ser. A, 8 1/4s, 11/15/39 B+/P 2,000,000 2,004,560
     (Buckingham Sr. Living Cmnty., Inc.), Ser. A, 5 1/2s, 11/15/45 BB/F 1,000,000 1,003,020
     (Buckner Retirement Svcs., Inc.), 5 1/4s, 11/15/37 A- 1,900,000 1,994,221
     (Air Force Village), 5 1/8s, 5/15/27 BBB-/F 2,850,000 2,930,000
Travis Cnty., Cultural Ed. Fac. Fin. Corp. Rev. Bonds (Wayside Schools), Ser. A, 5 1/4s, 8/15/42 BB+ 1,000,000 1,012,860
TX Muni. Gas Acquisition & Supply Corp. I Rev. Bonds, Ser. A, 5 1/4s, 12/15/24 A- 2,000,000 2,317,040
TX Private Activity Surface Trans. Corp. Rev. Bonds
     (NTE Mobility), 7 1/2s, 12/31/31 Baa2 2,000,000 2,414,640
     (LBJ Infrastructure), 7s, 6/30/40 Baa3 2,500,000 2,982,875
TX State G.O. Bonds (Trans. Auth.), Ser. A, 5s, 10/1/44 Aaa 1,500,000 1,700,025
TX State Dept. of Hsg. & Cmnty. Affairs Rev. Bonds, Ser. C, GNMA Coll., FNMA Coll., FHLMC Coll., 6.9s, 7/2/24 AA+ 250,000 251,498
TX State Muni. Gas Acquisition & Supply Corp. III Rev. Bonds, 5s, 12/15/28 A3 1,500,000 1,636,695
54,496,362
Virginia (2.5%)
Albemarle Cnty., Indl. Dev. Auth. Res. Care Fac. Rev. Bonds (Westminster-Canterbury), 5s, 1/1/24 BB/P 600,000 606,462
Alexandria, Indl. Dev. Auth. Res. Care Fac. Mtge. Rev. Bonds (Goodwin House, Inc.), 5s, 10/1/45 BBB/F 1,500,000 1,589,385
Cherry Hill Cmnty., Dev. Auth. 144A Special Assmt. Bonds (Potomac Shores), 5.4s, 3/1/45 B/P 1,000,000 1,013,380
Henrico Cnty., Econ. Dev. Auth. Res. Care Fac. Rev. Bonds (United Methodist Homes), 5s, 6/1/22 BB+/P 625,000 674,344
Lower Magnolia Green Cmnty., Dev. Auth. 144A Special Assmt. Bonds, 5s, 3/1/35 B/P 500,000 496,895
Lynchburg, Indl. Dev. Auth. Res. Care Fac. Rev. Bonds (Westminster-Canterbury)
     5s, 7/1/31 BB+/P 1,250,000 1,273,363
     4 7/8s, 7/1/21 BB+/P 1,000,000 1,030,510
VA State Small Bus. Fin. Auth. Rev. Bonds
     (Elizabeth River Crossings OPCO, LLC), 6s, 1/1/37 BBB- 900,000 1,027,449
     (Express Lanes, LLC), 5s, 7/1/34 BBB- 1,150,000 1,205,764
Washington Cnty., Indl. Dev. Auth. Hosp. Fac. Rev. Bonds (Mountain States Hlth. Alliance), Ser. C, 7 3/4s, 7/1/38 Baa1 1,700,000 1,962,480
10,880,032
Washington (3.6%)
WA State G.O. Bonds (Sr. 520 Corridor-Motor Vehicle Tax), Ser. C, 5s, 6/1/28(T) AA+ 5,000,000 5,778,865
Port of Seattle, Rev. Bonds, Ser. C, 5s, 4/1/40(FWC) A1 625,000 679,469
Port Seattle, Port Indl. Dev. Corp. Rev. Bonds (Delta Airlines, Inc.), 5s, 4/1/30 BB+ 300,000 312,168
Skagit Cnty., Pub. Hosp. Rev. Bonds (Dist. No. 001), 5 3/4s, 12/1/35 Baa2 2,500,000 2,745,375
Tobacco Settlement Auth. of WA Rev. Bonds, 5 1/4s, 6/1/32 A- 1,275,000 1,406,376
WA State Higher Ed. Fac. Auth. Rev. Bonds (Whitworth U.), 5 5/8s, 10/1/40 Baa1 400,000 431,464
WA State Hlth. Care Fac. Auth. Rev. Bonds
     (WA Hlth. Svcs.), 7s, 7/1/39 (Prerefunded 7/1/19) Baa1 1,000,000 1,216,780
     (Kadlec Med. Ctr.), 5 1/2s, 12/1/39 (Prerefunded 12/1/20) AAA/P 1,300,000 1,562,795
     (Central WA Hlth. Svcs. Assn.), 4s, 7/1/36 Baa1 810,000 778,847
WA State Hsg. Fin. Comm. 144A Rev. Bonds (Heron's Key Oblig. Group), Ser. A, 7s, 7/1/50(FWC) B-/P 500,000 499,305
15,411,444
West Virginia (0.2%)
WV State Hosp. Fin. Auth. Rev. Bonds (Thomas Hlth. Syst.), 6 3/4s, 10/1/43 B+/P 735,000 761,431
761,431
Wisconsin (1.4%)
Pub. Fin. Auth. Arpt. Fac. Rev. Bonds (Sr. Oblig. Group), 5 1/4s, 7/1/28 BBB 350,000 380,779
WI State Hlth. & Edl. Fac. Auth. Rev. Bonds
     (St. Johns Cmntys. Inc.), Ser. A, 7 5/8s, 9/15/39 BB+/P 1,350,000 1,568,741
     (Prohealth Care, Inc.), 6 5/8s, 2/15/39 (Prerefunded 2/15/19) A1 1,250,000 1,490,238
WI State Pub. Fin. Auth Sr. Living Rev. Bonds (Rose Villa, Inc.), Ser. A, 5 3/4s, 11/15/44 BB-/P 1,800,000 1,901,826
WI State Pub. Fin. Auth. 144A Rev. Bonds (Church Home of Hartford, Inc.), Ser. A, 5s, 9/1/30 BB/F 800,000 807,520
6,149,104
Total municipal bonds and notes (cost $521,009,968) $559,886,376

PREFERRED STOCKS (0.9%)(a)
Shares Value
MuniMae Tax Exempt Bond Subsidiary, LLC 144A Ser. A-5, 5s cum. pfd. 3,550,000 $3,852,815
Total preferred stocks (cost $3,550,000) $3,852,815

COMMON STOCKS (0.0%)(a)
Shares Value
Tembec, Inc. (Canada)(NON) 1,750 $2,435
Total common stocks (cost $1,273,945) $2,435

TOTAL INVESTMENTS
Total investments (cost $525,833,913)(b) $563,741,626













Notes to the fund's portfolio
Unless noted otherwise, the notes to the fund's portfolio are for the close of the fund's reporting period, which ran from November 1, 2014 through July 31, 2015 (the reporting period). Within the following notes to the portfolio, references to “ASC 820” represent Accounting Standards Codification 820 Fair Value Measurements and Disclosures, references to “Putnam Management” represent Putnam Investment Management, LLC, the fund's manager, an indirect wholly-owned subsidiary of Putnam Investments, LLC and references to “OTC”, if any, represent over-the-counter.
(a) Percentages indicated are based on net assets of $429,443,646.
(RAT) The Moody's, Standard & Poor's or Fitch ratings indicated are believed to be the most recent ratings available at the close of the reporting period for the securities listed. Ratings are generally ascribed to securities at the time of issuance. While the agencies may from time to time revise such ratings, they undertake no obligation to do so, and the ratings do not necessarily represent what the agencies would ascribe to these securities at the close of the reporting period. Securities rated by Putnam are indicated by “/P.” Securities rated by Fitch are indicated by “/F.” If a security is insured, it will usually be rated by the ratings organizations based on the financial strength of the insurer.
(b) The aggregate identified cost on a tax basis is $525,399,492, resulting in gross unrealized appreciation and depreciation of $47,015,350 and $8,673,216, respectively, or net unrealized appreciation of $38,342,134.
(NON) This security is non-income-producing.
(FWC) Forward commitment, in part or in entirety.
(F) This security is valued at fair value following procedures approved by the Trustees. Securities may be classified as Level 2 or Level 3 for ASC 820 based on the securities' valuation inputs.
(T) Underlying security in a tender option bond transaction. This security has been segregated as collateral for financing transactions.
At the close of the reporting period, the fund maintained liquid assets totaling $17,324,710 to cover tender option bonds.
144A after the name of an issuer represents securities exempt from registration under Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
On Mandatory Put Bonds, the rates shown are the current interest rates at the close of the reporting period and the dates shown represent the next mandatory put dates.
The dates shown parenthetically on prerefunded bonds represent the next prerefunding dates.
The dates shown on debt obligations are the original maturity dates.

The fund had the following sector concentrations greater than 10% at the close of the reporting period (as a percentage of net assets):
Healthcare 35.80%
Utilities 19.2
Transportation 16.7
Education 13.6

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 $30,865,467 were held by the TOB trust and served as collateral for $13,540,757 in floating-rate bonds outstanding. During the reporting period, the fund incurred interest expense of $5,063 for these investments based on an average interest rate of 0..04%.












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

 Valuation inputs
Investments in securities: Level 1 Level 2 Level 3
Common stocks*:
    Basic materials $2,435 $— $—
Total common stocks 2,435 — —
Municipal bonds and notes $— $559,800,500 $85,876
Preferred stocks — 3,852,815 —
Totals by level $2,435 $563,653,315 $85,876


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

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



Item 2. Controls and Procedures:
(a) The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the effectiveness of the design and operation of the registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the design and operation of such procedures are generally effective to provide reasonable assurance that information required to be disclosed by the registrant in this report is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms.

(b) Changes in internal control over financial reporting: Not applicable
Item 3. Exhibits:
Separate certifications for the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are filed herewith.

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Putnam Managed Municipal Income Trust
By (Signature and Title):
/s/ Janet C. Smith
Janet C. Smith
Principal Accounting Officer
Date: September 28, 2015

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title):
/s/ Jonathan S. Horwitz
Jonathan S. Horwitz
Principal Executive Officer
Date: September 28, 2015

By (Signature and Title):
/s/ Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer
Date: September 28, 2015