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, 2016
Date of reporting period: January 31, 2016



Item 1. Schedule of Investments:














Putnam Managed Municipal Income Trust

The fund's portfolio
1/31/16 (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
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.
NATL — National Public Finance Guarantee Corp.
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 (128.4%)(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 $1,193,302
Jefferson Cnty., Swr. Rev. Bonds
     Ser. D, 6 1/2s, 10/1/53 BBB- 500,000 601,325
     zero %, 10/1/46 BBB- 3,950,000 2,873,072
Selma, Indl. Dev. Board Rev. Bonds (Gulf Opportunity Zone Intl. Paper Co.), Ser. A, 6 1/4s, 11/1/33 BBB 1,000,000 1,161,190

5,828,889
American Samoa (0.1%)
Econ. Dev. Auth. Rev. Bonds, Ser. A, 6 5/8s, 9/1/35 Ba3 500,000 512,600

512,600
Arizona (5.0%)
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 2,206,860
Maricopa Cnty., Poll. Control Rev. Bonds (El Paso Elec. Co.), Ser. A, 7 1/4s, 2/1/40 Baa1 2,200,000 2,559,216
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 1,982,429
Phoenix, Indl. Dev. Auth. Ed. Rev. Bonds
     (Great Hearts Academies), 6s, 7/1/32 BB/F 200,000 214,952
     (Choice Academies, Inc.), 5 5/8s, 9/1/42 BB+ 315,000 326,800
     (Choice Academies, Inc.), 5 3/8s, 9/1/32 BB+ 675,000 705,152
     (Great Hearts Academies), 5s, 7/1/44 BBB- 1,700,000 1,764,940
     (BASIS School, Inc.), 5s, 7/1/35 BB 900,000 950,445
     (Choice Academies, Inc.), 4 7/8s, 9/1/22 BB+ 905,000 972,567
Phoenix, Indl. Dev. Auth. Ed. 144A Rev. Bonds (BASIS Schools, Inc.), Ser. A
     5s, 7/1/46 BB 250,000 259,105
     5s, 7/1/35 BB 600,000 633,630
Pima Cnty., Indl. Dev. Auth. Rev. Bonds (Horizon Cmnty. Learning Ctr.), 5.05s, 6/1/25 BBB- 1,140,000 1,140,912
Salt Verde, Fin. Corp. Gas Rev. Bonds
     5 1/2s, 12/1/29 Baa1 2,000,000 2,513,220
     5s, 12/1/37 Baa1 2,000,000 2,370,280
     5s, 12/1/32 Baa1 570,000 687,745
Tempe, Indl. Dev. Auth. Rev. Bonds (Friendship Village), Ser. A, 6 1/4s, 12/1/42 BB-/P 1,000,000 1,080,780
Yavapai Cnty., Indl. Dev. Ed. Auth. Rev. Bonds (Agribusiness & Equine Ctr.), 5s, 3/1/32 BB+ 1,000,000 1,020,740
Yavapai Cnty., Indl. Dev. Ed. Auth. 144A Rev. Bonds, Ser. A, 5s, 9/1/34 BB+ 500,000 506,900

21,905,042
Arkansas (0.2%)
Arkadelphia, Pub. Ed. Fac. Board Rev. Bonds (Ouachita Baptist U.), 6s, 3/1/33 BB+/P 840,000 894,398

894,398
California (14.1%)
ABAG Fin. Auth. for Nonprofit Corps. Rev. Bonds
     (Episcopal Sr. Cmntys.), 6s, 7/1/31 BBB+/F 660,000 755,363
     (O'Connor Woods), 5s, 1/1/33 AA- 600,000 695,970
CA Muni. Fin. Auth. COP (Cmnty. Hosp. Central CA)
     5 1/4s, 2/1/37 A- 650,000 671,938
     U.S. Govt. Coll., 5 1/4s, 2/1/37 (Prerefunded 2/1/17) AAA/P 455,000 476,412
CA Muni. Fin. Auth. Rev. Bonds
     (U. of La Verne), Ser. A, 6 1/8s, 6/1/30 Baa1 1,000,000 1,140,720
     (Emerson College), 6s, 1/1/42 Baa1 1,000,000 1,195,540
     (Cmnty. Med. Ctrs.), Ser. A, 5s, 2/1/40 A- 750,000 846,038
CA School Fin. Auth. Rev. Bonds (2023 Union, LLC), Ser. A, 6s, 7/1/33 BBB- 465,000 519,066
CA State G.O. Bonds
     6 1/2s, 4/1/33 Aa3 5,000,000 5,875,721
     5s, 4/1/42 Aa3 2,000,000 2,310,980
CA State Muni. Fin. Auth. Charter School Rev. Bonds (Partnerships Uplift Cmnty.), Ser. A, 5s, 8/1/32 BB+ 665,000 703,484
CA State Poll. Control Fin. Auth. Rev. Bonds
     (Wtr. Furnishing), 5s, 11/21/45 Baa3 2,000,000 2,194,960
     (Pacific Gas & Electric Corp.), Class D, FGIC, 4 3/4s, 12/1/23 A3 2,500,000 2,622,300
CA State Poll. Control Fin. Auth. Solid Waste Disp. 144A Mandatory Put Bonds (2/1/16) (Republic Svcs., Inc.), Ser. A, 0.65s, 8/1/23 BBB+ 2,400,000 2,400,000
CA State Pub. Wks. Board Rev. Bonds
     (Dept. of Forestry & Fire), Ser. E, 5s, 11/1/32 A1 1,250,000 1,332,413
     (Capital Projects), Ser. A, 5s, 4/1/29 A1 2,000,000 2,370,320
CA Statewide Cmnty. Dev. Auth. COP (The Internext Group), 5 3/8s, 4/1/30 BBB+ 540,000 541,555
CA Statewide Cmnty. Dev. Auth. Rev. Bonds
     (Terraces at San Joaquin Gardens), Ser. A, 6s, 10/1/47 BB/P 1,345,000 1,441,531
     (American Baptist Homes West), 5 3/4s, 10/1/25 BBB+/F 3,000,000 3,399,720
     (U. CA Irvine E. Campus Apts. Phase 1), 5 3/8s, 5/15/38 Baa2 1,000,000 1,130,850
     (899 Charleston, LLC), Ser. A, 5 1/4s, 11/1/44 BB/P 450,000 460,737
     (U. CA Irvine E. Campus Apts. Phase 1), 5 1/8s, 5/15/31 Baa2 2,250,000 2,532,218
Corona-Norco, School Dist. Pub. Fin. Auth. Special Tax Bonds (Sr. Lien), Ser. A, 5s, 9/1/28 A- 380,000 432,269
Foothill/Eastern Corridor Agcy. Rev. Bonds, Ser. A, 6s, 1/15/53 BBB- 1,500,000 1,781,145
Golden State Tobacco Securitization Corp. Rev. Bonds
     Ser. A-2, 5.3s, 6/1/37 B3 1,000,000 935,690
     Ser. A-1, 5 1/8s, 6/1/47 B3 3,235,000 2,870,157
La Verne, COP (Brethren Hillcrest Homes), 5s, 5/15/36 BBB-/F 325,000 350,906
Los Angeles, Dept. of Arpt. Rev. Bonds (Los Angeles Intl. Arpt.), 5s, 5/15/30 AA 1,000,000 1,166,940
Los Angeles, Regl. Arpt. Impt. Corp. Lease Rev. Bonds (Laxfuel Corp.), 4 1/2s, 1/1/27 A 400,000 434,980
M-S-R Energy Auth. Rev. Bonds, Ser. A, 6 1/2s, 11/1/39 BBB+ 750,000 1,082,888
Oakland, Alameda Cnty. Unified School Dist. G.O. Bonds
     (Election of 2012), 6 5/8s, 8/1/38 BBB/P 800,000 956,632
     (Election of 2006), Ser. A, 5 1/2s, 8/1/32 BBB/P 500,000 576,770
Poway, Unified School Dist. Pub. Fin. Auth. Special Tax Bonds, 5s, 9/15/32 BBB 495,000 551,247
Rancho Cordova, Cmnty. Fac. Dist. Special Tax Bonds (Sunridge Anatolia), Ser. 03-1, 5s, 9/1/37 BB+/P 350,000 384,265
San Francisco City & Cnty. Arpt. Comm. Intl. Arpt. Rev. Bonds, Ser. A, 5s, 5/1/30 A1 600,000 686,946
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 2,000,000 445,560
     (No. 6 Mission Bay Pub. Impts.), Ser. C, zero %, 8/1/38 BBB-/P 2,000,000 602,560
San Francisco, City & Cnty. Redev. Fin. Auth. Tax Alloc. Bonds (Mission Bay South Redev.), Ser. D, 6 5/8s, 8/1/39 BBB+ 250,000 282,155
San Joaquin Hills, Trans. Corridor Agcy. Toll Road Rev. Bonds, Ser. A, 5s, 1/15/34 BBB- 920,000 1,028,983
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+ 1,620,000 1,837,922
Sunnyvale, Special Tax Bonds (Cmnty. Fac. Dist. No. 1), 7 3/4s, 8/1/32 B+/P 835,000 837,363
Univ. of CA Rev. Bonds, Ser. AF, 5s, 5/15/36(T) AA 7,000,000 8,236,686
Yucaipa Special Tax Bonds (Cmnty. Fac. Dist. No. 98-1 Chapman Heights), 5 3/8s, 9/1/30 BBB+ 375,000 416,959

61,516,859
Colorado (3.6%)
Central Platte Valley, Metro. Dist. G.O. Bonds, 5s, 12/1/43 BB+ 400,000 420,864
CO Pub. Hwy. Auth. Rev. Bonds (E-470), Ser. C, 5 3/8s, 9/1/26 Baa1 500,000 562,495
CO State Educ. & Cultural Fac. Auth. Rev. Bonds (Skyview Academy), 5 1/8s, 7/1/34 BB+ 755,000 811,225
CO State Hlth. Fac. Auth. Rev. Bonds
     (Christian Living Cmnty.), 6 3/8s, 1/1/41 BB-/P 810,000 864,643
     (Total Longterm Care National), Ser. A, 6 1/4s, 11/15/40 A/F 300,000 339,699
     (Christian Living Cmntys.), Ser. A, 5 3/4s, 1/1/26 BB-/P 1,925,000 1,954,587
     (Evangelical Lutheran Good Samaritan Society Oblig. Group (The)), 5 5/8s, 6/1/43 Baa1 250,000 287,023
     (Valley View Assn.), 5 1/4s, 5/15/42 A- 3,495,000 3,641,266
     (Evangelical Lutheran Good Samaritan Society Oblig. Group (The)), Ser. A, 5s, 6/1/45 Baa1 1,500,000 1,624,245
     (Covenant Retirement Cmnty.), Ser. A, 5s, 12/1/33 BBB+/F 900,000 960,462
     (Evangelical Lutheran Good Samaritan Society Oblig. Group (The)), 5s, 12/1/33 Baa1 1,100,000 1,212,563
Eaton, Area Park & Recreation Dist. G.O. Bonds, 5 1/4s, 12/1/34 BB/P 220,000 232,373
Park Creek Metro. Dist. Tax Allocation Bonds (Sr. Ltd. Property Tax Supported), Ser. A, 5s, 12/1/45 BBB/F 225,000 252,653
Plaza, Tax Alloc. Bonds (Metro. Dist. No. 1), 5s, 12/1/40 BB/P 1,650,000 1,728,557
Regl. Trans. Dist. Rev. Bonds (Denver Trans. Partners), 6s, 1/15/41 Baa3 750,000 849,743

15,742,398
Delaware (0.8%)
DE State Econ. Dev. Auth. Rev. Bonds
     (Delmarva Pwr.), 5.4s, 2/1/31 Baa1 500,000 556,775
     (Indian River Pwr.), 5 3/8s, 10/1/45 Baa3 2,600,000 2,698,956

3,255,731
District of Columbia (1.7%)
DC Rev. Bonds
     (Howard U.), Ser. A, 6 1/2s, 10/1/41 BBB 400,000 427,900
     (Howard U.), Ser. A, 6 1/4s, 10/1/32 BBB 1,000,000 1,086,920
     (Kipp Charter School), 6s, 7/1/33 BBB+ 1,000,000 1,155,570
DC Tobacco Settlement Fin. Corp. Rev. Bonds, Ser. A, zero %, 6/15/46 B-/F 7,500,000 939,225
DC, Rev. Bonds (Methodist Home of The DC (The)), Ser. A, 5 1/4s, 1/1/39 BB-/P 250,000 252,290
Metro. Washington, Arpt. Auth. Dulles Toll Rd. Rev. Bonds, Ser. B, zero %, 10/1/40 Baa1 10,000,000 3,527,700

7,389,605
Florida (6.0%)
Broward Cnty., Arpt. Syst. Rev. Bonds, Ser. A, 5s, 10/1/45 A1 2,000,000 2,240,540
Double Branch Cmnty. Dev. Dist. Special Assmt. Bonds (Sr. Lien), Ser. A-1, 4 1/8s, 5/1/31 A- 500,000 510,185
Fishhawk, CCD IV Special Assmt. Bonds, 7 1/4s, 5/1/43 B/P 400,000 436,888
Florida State Higher Edl. Fac. Rev. Bonds (U. of Tampa), Ser. A, 5s, 4/1/32 BBB+ 600,000 655,374
Greater Orlando Aviation Auth. Rev. Bonds (JetBlue Airways Corp.), 5s, 11/15/36 B/P 1,000,000 1,038,870
Jacksonville, Econ. Dev. Comm. Hlth. Care Fac. Rev. Bonds (FL Proton Therapy Inst.), Ser. A, 6s, 9/1/17 BB-/P 260,000 271,354
Jacksonville, Econ. Dev. Comm. Indl. Dev. Rev. Bonds (Gerdau Ameristeel US, Inc.), 5.3s, 5/1/37 Baa3 2,450,000 2,449,829
Lakeland, Hosp. Syst. Rev. Bonds (Lakeland Regl. Hlth.), 5s, 11/15/40 A2 500,000 557,465
Lakeland, Retirement Cmnty. 144A Rev. Bonds (1st Mtge. - Carpenters), 6 3/8s, 1/1/43 BBB-/F 840,000 886,368
Lakewood Ranch, Stewardship Dist. Special Assessment Bonds (Village of Lakewood Ranch South), 5 1/8s, 5/1/46 B+/P 1,000,000 1,007,490
Lakewood Ranch, Stewardship Dist. Special Assmt. Bonds, 4 7/8s, 5/1/35 BB-/P 500,000 516,310
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 1,100,435
     5s, 11/15/22 BBB- 1,500,000 1,557,270
Martin Cnty., Rev. Bonds (Indiantown Cogeneration), 4.2s, 12/15/25 Ba1 500,000 510,380
Miami Beach, Hlth. Fac. Auth. Hosp. Rev. Bonds (Mount Sinai Med. Ctr.), 5s, 11/15/29 Baa1 1,000,000 1,125,150
Miami-Dade Cnty., Indl. Dev. Auth. Rev. Bonds (Pinecrest Academy, Inc.), 5s, 9/15/34 BBB- 1,240,000 1,303,711
Midtown Miami Cmnty. Dev. Dist. Special Assmt. Bonds (Garage), Ser. A, 5s, 5/1/29 BB-/P 570,000 609,575
Palm Beach Cnty., Hlth. Fac. Auth. Rev. Bonds (Acts Retirement-Life Cmnty.), 5 1/2s, 11/15/33 BBB+ 2,000,000 2,191,260
Palm Coast Pk. Cmnty. Dev. Dist. Special Assmt. Bonds, 5.7s, 5/1/37 B-/P 250,000 215,143
South Lake Hosp. Dist. Rev. Bonds (South Lake Hosp.), Ser. A, 6s, 4/1/29 Baa1 1,000,000 1,120,600
Southeast Overtown Park West Cmnty. Redev. Agcy. 144A Tax Alloc. Bonds, Ser. A-1, 5s, 3/1/30 BBB+ 480,000 527,045
Tallahassee, Hlth. Fac. Rev. Bonds (Tallahassee Memorial HealthCare, Inc.), Ser. A, 5s, 12/1/55(FWC) Baa1 1,000,000 1,092,450
Tolomato, Cmnty. Dev. Dist. Special Assmt. Bonds, 5.4s, 5/1/37 B+/P 770,000 770,978
Verandah, West Cmnty. Dev. Dist. Special Assmt. Bonds (Cap. Impt.), 5s, 5/1/33 BB-/P 500,000 517,775
Verano Ctr. Cmnty. Dev. Dist. Special Assmt. Bonds (Cmnty. Infrastructure), Ser. A, 5 3/8s, 5/1/37 B-/P 870,000 870,357
Village Cmnty. Dev. Dist. No. 10 Special Assmt. Bonds, 5 3/4s, 5/1/31 BB/P 800,000 921,992
Village Cmnty. Dev. Dist. No. 8 Special Assmt. Bonds (Phase II), 6 1/8s, 5/1/39 BBB-/P 405,000 466,933
Village Cmnty. Dev. Dist. No. 9 Special Assmt. Bonds, 5s, 5/1/22 BBB-/P 445,000 469,230

25,940,957
Georgia (3.7%)
Atlanta, Wtr. & Waste Wtr. Rev. Bonds, Ser. A, 6 1/4s, 11/1/39 (Prerefunded 11/1/19) Aa3 2,500,000 2,991,350
Clayton Cnty., Dev. Auth. Special Fac. Rev. Bonds (Delta Airlines), Ser. A, 8 3/4s, 6/1/29 BB 3,000,000 3,742,020
Cobb Cnty., Dev. Auth. Student Hsg. Rev. Bonds (Kennesaw State U. Real Estate Oblig. Group), Ser. C, 5s, 7/15/38 Baa2 750,000 815,910
Forsyth Cnty., Hosp. Auth. Rev. Bonds (Baptist Hlth. Care Syst.), U.S. Govt. Coll., 6 1/4s, 10/1/18 (Escrowed to maturity) AA+ 730,000 791,649
GA State Private College & U. Auth. Rev. Bonds (Mercer U.)
     Ser. C, 5 1/4s, 10/1/30 Baa2 750,000 849,233
     Ser. A, 5 1/4s, 10/1/27 Baa2 1,000,000 1,137,500
     Ser. A, 5s, 10/1/32 Baa2 1,000,000 1,117,730
Gainesville & Hall Cnty., Devauth Retirement Cmnty. Rev. Bonds (Acts Retirement-Life Cmnty.), Ser. A-2, 6 3/8s, 11/15/29 BBB+ 700,000 796,761
Marietta, Dev. Auth. Rev. Bonds (Fac. of Life U., Inc.), Ser. PJ, 6 1/4s, 6/15/20 Ba3 815,000 862,205
Muni. Election Auth. of GA Rev. Bonds (Plant Voltage Units 3 & 4), Ser. A, 5 1/2s, 7/1/60 A+ 2,000,000 2,351,640
Rockdale Cnty., Dev. Auth. Rev. Bonds (Visy Paper), Ser. A, 6 1/8s, 1/1/34 BB/P 600,000 615,342

16,071,340
Guam (0.1%)
Territory of GU, Pwr. Auth. Rev. Bonds, Ser. A, 5s, 10/1/34 Baa2 200,000 219,730

219,730
Hawaii (1.0%)
HI State Dept. Budget & Fin. Rev. Bonds
     (Craigside), Ser. A, 9s, 11/15/44 B/P 400,000 496,552
     (Hawaiian Elec. Co. - Subsidiary), 6 1/2s, 7/1/39 Baa1 3,000,000 3,413,130
     (Kahala Nui), 5 1/8s, 11/15/32 BBB/F 400,000 435,396

4,345,078
Illinois (6.3%)
Chicago, G.O. Bonds
     Ser. B-2, 5 1/2s, 1/1/37 BBB+ 2,000,000 2,029,440
     Ser. C, 5s, 1/1/38 BBB+ 1,500,000 1,442,010
Chicago, Special Assmt. Bonds (Lake Shore East), 6 3/4s, 12/1/32 BB/P 1,610,000 1,613,075
Chicago, Board of Ed. G.O. Bonds, Ser. C, 5 1/4s, 12/1/39 B+ 1,500,000 1,174,560
Chicago, Motor Fuel Tax Rev. Bonds, 5s, 1/1/29 BBB+ 500,000 524,610
Chicago, O'Hare Intl. Arpt. Rev. Bonds, Ser. C, 5s, 1/1/26 A2 2,595,000 3,011,498
Chicago, Transit Auth. Rev. Bonds (Federal Transit Administration Section 5307), 5s, 6/1/18 A 1,050,000 1,129,233
Chicago, Waste Wtr. Transmission Rev. Bonds (2nd Lien), 5s, 1/1/39 A 1,360,000 1,472,499
Chicago, Wtr. Wks Rev. Bonds, 5s, 11/1/39 A- 875,000 954,494
Cicero, G.O. Bonds, Ser. A, AGM, 5s, 1/1/20 AA 1,250,000 1,390,875
Du Page Cnty., Special Svc. Area No. 31 Special Tax Bonds (Monarch Landing)
     5 5/8s, 3/1/36 B/P 350,000 350,158
     5.4s, 3/1/16 B/P 40,000 40,060
IL Fin. Auth. Rev. Bonds
     (Provena Hlth.), Ser. A, 7 3/4s, 8/15/34 BBB+ 1,500,000 1,801,905
     (Silver Cross Hosp. & Med. Ctr.), 7s, 8/15/44 (Prerefunded 8/15/19) AAA/P 2,000,000 2,410,140
     (Rush U. Med. Ctr.), Ser. C, U.S. Govt. Coll., 6 5/8s, 11/1/39 (Prerefunded 5/1/19) Aaa 1,075,000 1,266,028
     (Navistar Intl. Recvy. Zone), 6 1/2s, 10/15/40 Caa1 1,000,000 974,550
     (Three Crowns Pk. Plaza), Ser. A, 5 7/8s, 2/15/26 BB-/P 1,000,000 1,001,350
     (American Wtr. Cap. Corp.), 5 1/4s, 10/1/39 A 1,575,000 1,664,980
IL State G.O. Bonds, 5s, 3/1/34 A- 750,000 790,500
IL State Fin. Auth. Rev. Bonds (Plymouth Place ), 5 1/4s, 5/15/45 BB+/F 1,000,000 1,033,320
Railsplitter, Tobacco Settlement Auth. Rev. Bonds, 6s, 6/1/28 A- 1,050,000 1,247,201

27,322,486
Indiana (3.8%)
IN State Fin. Auth. Rev. Bonds
     (I-69 Dev. Partners, LLC), 5 1/4s, 9/1/40 BBB- 1,000,000 1,111,450
     (I-69 Dev. Partners, LLC), 5 1/4s, 9/1/34 BBB- 1,250,000 1,411,838
     (OH Valley Elec. Corp.), Ser. A, 5s, 6/1/32 Baa3 750,000 799,725
IN State Fin. Auth. VRDN, Ser. A-3, 0.01s, 2/1/37 VMIG1 2,445,000 2,445,000
IN State Fin. Auth. Econ. Dev. Mandatory Put Bonds (3/3/16) (Republic Svcs., Inc.), 0.58s, 12/1/37 BBB+ 1,500,000 1,500,030
IN State Fin. Auth. Edl. Fac. Rev. Bonds (Butler U.), Ser. B
     5s, 2/1/32 BBB+ 1,000,000 1,102,060
     5s, 2/1/29 BBB+ 500,000 558,270
Indianapolis, Arpt. Auth. Rev. Bonds (Federal Express Corp.), 5.1s, 1/15/17 Baa1 3,500,000 3,632,825
Jasper Cnty., Indl. Poll. Control Rev. Bonds
     AMBAC, 5.7s, 7/1/17 Baa1 1,125,000 1,195,774
     NATL, 5.6s, 11/1/16 AA- 700,000 724,290
     Ser. A, NATL, 5.6s, 11/1/16 AA- 500,000 517,350
Valparaiso, Exempt Facs. Rev. Bonds (Pratt Paper, LLC), 6 3/4s, 1/1/34 B+/P 1,125,000 1,373,974

16,372,586
Iowa (2.2%)
IA Fin. Auth. Hlth. Care Fac. Rev. Bonds (Dev. Care Initiatives), Ser. A
     5 1/4s, 7/1/17 BB+ 1,040,000 1,055,475
     5s, 7/1/19 BB+ 2,750,000 2,783,303
IA Fin. Auth. Hlth. Fac. Rev. Bonds (Dev. Care Initiatives), Ser. A, 5 1/2s, 7/1/25 BB+ 950,000 959,168
IA State Fin. Auth. Midwestern Disaster Rev. Bonds (IA Fertilizer Co., LLC)
     5 1/2s, 12/1/22 BB- 1,000,000 1,053,070
     5 1/4s, 12/1/25 BB- 1,000,000 1,096,620
Orange Cnty., Hosp. Rev. Bonds, 5 1/2s, 9/1/27 BB/P 1,125,000 1,147,748
Tobacco Settlement Auth. of IA Rev. Bonds, Ser. C, 5 3/8s, 6/1/38 B+ 1,250,000 1,226,800

9,322,184
Kansas (0.1%)
Lenexa, Hlth. Care Fac. Rev. Bonds (LakeView Village), 7 1/8s, 5/15/29 BB/P 500,000 553,595

553,595
Kentucky (1.9%)
KY Econ. Dev. Fin. Auth. Rev. Bonds (Masonic Home Indpt. Living II)
     7 1/4s, 5/15/41 BB-/P 500,000 590,750
     7s, 5/15/30 BB-/P 500,000 590,050
KY Pub. Trans. Infrastructure Auth. Rev. Bonds (1st Tier Downtown Crossing), Ser. A, 6s, 7/1/53 Baa3 1,100,000 1,287,506
KY State Econ. Dev. Fin. Auth. Hlth. Care Rev. Bonds (Masonic Homes of KY), 5 3/8s, 11/15/42 BB-/P 900,000 914,841
Louisville & Jefferson Cnty., Metro. Govt. College Rev. Bonds (Bellarmine U.), Ser. A, 6s, 5/1/28 Baa3 500,000 538,625
Louisville & Jefferson Cnty., Metro. Govt. Hlth. Syst. Rev. Bonds (Norton Healthcare Oblig. Group), 5 1/2s, 10/1/33 A- 3,000,000 3,505,320
Owen Cnty., Wtr. Wks. Syst. Rev. Bonds (American Wtr. Co.), Ser. A, 6 1/4s, 6/1/39 A 700,000 789,502

8,216,594
Louisiana (1.2%)
LA State Local Govt. Env. Fac. & Cmnty. Dev. Auth. Rev. Bonds (Westlake Chemical Corp.), 6 3/4s, 11/1/32 BBB+ 2,200,000 2,380,950
LA State Pub. Fac. Auth. Rev. Bonds (Ochsner Clinic Foundation), 5s, 5/15/47 Baa1 250,000 271,233
LA State Pub. Fac. Solid Waste Disp. Auth. Rev. Bonds (LA Pellets, Inc.), Ser. A, 8 3/8s, 7/1/39 CCC/P 500,000 400,355
Pub. Fac. Auth. Dock & Wharf 144A Rev. Bonds (Impala Warehousing, LLC), 6 1/2s, 7/1/36 B+/P 1,000,000 1,124,140
Rapides, Fin. Auth. FRB (Cleco Pwr.), AMBAC, 4.7s, 11/1/36 A3 750,000 760,395
St. Tammany, Public Trust Fin. Auth. Rev. Bonds (Christwood), 5 1/4s, 11/15/37 BB/P 385,000 392,842

5,329,915
Maine (0.6%)
ME Hlth. & Higher Edl. Fac. Auth. Rev. Bonds
     (ME Gen. Med. Ctr.), 7 1/2s, 7/1/32 Ba2 1,000,000 1,190,160
     (MaineGeneral Health Oblig. Group), 6.95s, 7/1/41 Ba2 1,000,000 1,125,130
ME State Fin. Auth. Solid Waste Disp. 144A Mandatory Put Bonds (8/1/25) (Casella Waste Syst.), 5 1/8s, 8/1/35 B1 500,000 507,700

2,822,990
Maryland (1.0%)
Baltimore Cnty., Rev. Bonds (Oak Crest Village, Inc. Fac.), Ser. A, 5s, 1/1/37 A- 2,000,000 2,051,660
MD Econ. Dev. Corp. Poll. Control Rev. Bonds (Potomac Electric Power Co.), 6.2s, 9/1/22 A2 550,000 631,763
Westminster, Rev. Bonds
     (Lutheran Village at Miller's Grant, Inc. (The)), Ser. A, 6s, 7/1/34 B-/P 250,000 277,115
     (Carroll Lutheran Village, Inc.), 5 1/8s, 7/1/34 BB/P 1,500,000 1,578,945

4,539,483
Massachusetts (6.2%)
MA State Dev. Fin. Agcy. Rev. Bonds
     (Sabis Intl.), Ser. A, 8s, 4/15/39 (Prerefunded 10/15/19) BBB 690,000 863,852
     (Linden Ponds, Inc. Fac.), Ser. A-1, 6 1/4s, 11/15/46 B-/P 450,850 437,040
     (Linden Ponds, Inc. Fac.), Ser. A-1, 6 1/4s, 11/15/26 B-/P 275,400 276,256
     (Boston U.), SGI, 6s, 5/15/59 A1 500,000 633,310
     (Loomis Cmntys.), Ser. A, 6s, 1/1/33 BBB- 200,000 225,544
     (Linden Ponds, Inc. Fac.), Ser. A-2, 5 1/2s, 11/15/46 B-/P 88,265 76,781
     (New England Conservatory of Music), U.S. Govt. Coll., 5 1/4s, 7/1/38 (Prerefunded 7/1/18) AAA/P 805,000 889,147
     (Wheelock College), Ser. C, 5 1/4s, 10/1/29 BBB 1,700,000 1,766,793
     (First Mtge. - Orchard Cove), 5s, 10/1/19 BB/P 550,000 568,667
     (Linden Ponds, Inc. Fac.), Ser. B, zero %, 11/15/56 B-/P 439,022 3,091
MA State Dev. Fin. Agcy. Hlth. Care Fac. 144A Rev. Bonds (Adventcare), Ser. A, 6.65s, 10/15/28 B/P 1,050,000 1,079,526
MA State Dev. Fin. Agcy. Solid Waste Disp. FRB (Dominion Energy Brayton Point), Ser. 1, U.S. Govt. Coll., 5 3/4s, 12/1/42 (Prerefunded 5/1/19) BBB+ 1,050,000 1,210,997
MA State Edl. Fin. Auth. Rev. Bonds, Ser. B, 5 1/2s, 1/1/23 AA 485,000 526,734
MA State Hlth. & Edl. Fac. Auth. Rev. Bonds
     (Suffolk U.), Ser. A, 6 1/4s, 7/1/30 Baa2 1,000,000 1,138,380
     (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 1,057,578
     (Baystate Med. Ctr.), Ser. I, 5 3/4s, 7/1/36 A+ 1,500,000 1,694,085
     (Springfield College), 5 5/8s, 10/15/40 Baa1 450,000 487,607
     (Springfield College), 5 1/2s, 10/15/31 Baa1 1,100,000 1,204,863
     (Springfield College), 5 1/2s, 10/15/26 Baa1 1,500,000 1,665,315
     (Fisher College), Ser. A, 5 1/8s, 4/1/37 BBB- 250,000 254,515
     (Milford Regl. Med.), Ser. E, 5s, 7/15/22 Baa3 2,200,000 2,301,354
MA State Port Auth. Special Fac. Rev. Bonds (Conrac), Ser. A, 5 1/8s, 7/1/41 A 750,000 818,078
MA State Trans. Fund Rev. Bonds (Rail Enhancement Program), Ser. A
     5s, 6/1/24 Aaa 650,000 825,715
     5s, 6/1/23 Aaa 2,885,000 3,610,433
Metro. Boston, Trans. Pkg. Corp. Rev. Bonds
     (Systemwide Pkg.), 5 1/4s, 7/1/33 A1 1,500,000 1,775,010
     5s, 7/1/41 A1 1,500,000 1,730,505

27,121,209
Michigan (4.7%)
Detroit, Wtr. Supply Syst. Rev. Bonds, Ser. B, AGM, 6 1/4s, 7/1/36 AA 1,660,000 1,885,013
Flint, Hosp. Bldg. Auth. Rev. Bonds, Ser. A, 5 1/4s, 7/1/39 Ba1 750,000 761,925
Kentwood, Economic Dev. Rev. Bonds (Holland Home), 5 5/8s, 11/15/32 BB+/F 2,195,000 2,338,575
MI State Fin. Auth. Rev. Bonds
     (Presbyterian Villages of MI), 5 1/2s, 11/15/45 BB+/F 500,000 518,725
     (Local Govt. Loan Program - Detroit Wtr. & Swr. Dept. (DWSD)), Ser. D-2, 5s, 7/1/34 BBB+ 400,000 454,616
     (Detroit Wtr. & Swr.), Ser. C-6, 5s, 7/1/33 A- 600,000 684,774
MI State Hosp. Fin. Auth. Rev. Bonds
     Ser. A, 6 1/8s, 6/1/39 (Prerefunded 6/1/19) AA+ 2,000,000 2,334,620
     (Henry Ford Hlth.), 5 3/4s, 11/15/39 A3 1,600,000 1,823,168
     (Henry Ford Hlth. Syst.), Ser. A, 5 1/4s, 11/15/46 A3 2,565,000 2,646,721
MI State Strategic Fund Ltd. Rev. Bonds (Worthington Armstrong Venture), 5 3/4s, 10/1/22 (Escrowed to maturity) AAA/P 1,350,000 1,663,268
MI State Strategic Fund Ltd. Oblig. Rev. Bonds (Cadillac Place Office Bldg.), 5 1/4s, 10/15/26 Aa3 1,250,000 1,477,388
Monroe Cnty., Hosp. Fin. Auth. Rev. Bonds (Mercy Memorial Hosp. Corp.), 5 1/2s, 6/1/20 (Prerefunded 6/1/16) AA- 1,480,000 1,504,746
Wayne Cnty., Arpt. Auth. Rev. Bonds, Ser. A, 5s, 12/1/21 A2 2,000,000 2,324,860

20,418,399
Minnesota (2.4%)
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 2,188,980
     6 1/4s, 7/1/34 (Prerefunded 7/1/18) AAA/P 1,060,000 1,196,040
Inver Grove Heights, Nursing Home Rev. Bonds (Presbyterian Homes Care), 5 3/8s, 10/1/26 B/P 700,000 700,371
North Oaks, Sr. Hsg. Rev. Bonds (Presbyterian Homes North Oaks), 6 1/8s, 10/1/39 BB/P 315,000 328,888
Northfield, Hosp. Rev. Bonds, 5 3/8s, 11/1/26 BBB 750,000 772,095
Otsego, Charter School Lease Rev. Bonds (Kaleidoscope Charter School), Ser. A, 5s, 9/1/34 BB+ 800,000 822,440
Rochester, Hlth. Care Fac. Rev. Bonds (Olmsted Med. Ctr.), 5 7/8s, 7/1/30 A-/F 1,000,000 1,169,260
Sartell, Hlth. Care & Hsg. Facs. Rev. Bonds (Country Manor Campus, LLC)
     5 1/4s, 9/1/30 B-/P 500,000 525,195
     5 1/4s, 9/1/27 B-/P 750,000 798,375
St. Paul, Hsg. & Redev. Auth. Charter School Lease Rev. Bonds (Nova Classical Academy), Ser. A
     6 5/8s, 9/1/42 BBB- 250,000 281,313
     6 3/8s, 9/1/31 BBB- 250,000 288,040
St. Paul, Hsg. & Redev. Auth. Hosp. Fac. Rev. Bonds (Healtheast Care Syst.), Ser. A, 5s, 11/15/40 BBB- 300,000 330,198
St. Paul, Port Auth. Lease Rev. Bonds (Regions Hosp. Pkg. Ramp), Ser. 1, 5s, 8/1/36 A-/P 1,125,000 1,139,006

10,540,201
Mississippi (1.0%)
MS State Bus. Fin. Commission Gulf Opportunity Zone VRDN (Chevron USA, Inc.), Ser. E, 0.01s, 12/1/30 VMIG1 2,500,000 2,500,000
Warren Cnty., Gulf Opportunity Zone Rev. Bonds (Intl. Paper Co.), Ser. A, 6 1/2s, 9/1/32 Baa2 1,600,000 1,798,048

4,298,048
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 1,500,030
St. Louis Arpt. Rev. Bonds (Lambert-St. Louis Intl.), Ser. A-1, 6 5/8s, 7/1/34 A3 1,000,000 1,174,530

2,674,560
Montana (0.1%)
MT Fac. Fin. Auth. Rev. Bonds (Sr. Living St. John's Lutheran), Ser. A, 6s, 5/15/25 B+/P 500,000 505,120

505,120
Nebraska (0.6%)
Central Plains, Energy Rev. Bonds (NE Gas No. 1), Ser. A, 5 1/4s, 12/1/18 A3 1,500,000 1,661,745
Lancaster Cnty., Hosp. Auth. Rev. Bonds (Immanuel Oblig. Group), 5 1/2s, 1/1/30 AA/F 1,000,000 1,139,930

2,801,675
Nevada (1.1%)
Clark Cnty., Arpt. Rev. Bonds, Ser. A-2, 5s, 7/1/33 A1 1,050,000 1,222,872
Clark Cnty., Impt. Dist. Special Assmt. Bonds (Mountains Edge Local No. 142), 5s, 8/1/21 BBB 570,000 622,822
Clark Cnty., Impt. Dist. No. 159 Special Assessment Bonds (Summerlin Village 16A), 5s, 8/1/32 B+/P 500,000 518,750
Henderson, Local Impt. Dist. Special Assmt. Bonds
     (No. T-17), 5s, 9/1/18 BBB-/P 350,000 360,283
     (No. T-18), 5s, 9/1/16 B-/P 715,000 714,106
Las Vegas, Special Assmt. Bonds
     5s, 6/1/31 B+/P 450,000 472,793
     (Dist. No. 607 Local Impt.), 5s, 6/1/23 BBB-/P 405,000 438,234
Las Vegas, Impt. Dist. No. 812 Special Assessment Bonds (Summerlin Village 24), 5s, 12/1/35 B/P 250,000 254,848

4,604,708
New Hampshire (1.7%)
NH Hlth. & Ed. Fac. Auth. Rev. Bonds
     (Rivermead), Ser. A, 6 7/8s, 7/1/41 BB+/P 2,000,000 2,251,320
     (Rivermead), Ser. A, 6 5/8s, 7/1/31 BB+/P 1,320,000 1,492,524
     (Kendal at Hanover), Ser. A, 5s, 10/1/18 BBB+ 1,435,000 1,451,818
NH State Bus. Fin. Auth. Rev. Bonds (Elliot Hosp. Oblig. Group), Ser. A, 6s, 10/1/27 Baa1 1,700,000 1,914,489
NH State Bus. Fin. Auth. Solid Waste Disp. 144A Mandatory Put Bonds (10/1/19) (Casella Waste Syst., Inc.), 4s, 4/1/29 B1 350,000 353,791

7,463,942
New Jersey (9.1%)
Burlington Cnty., Bridge Comm. Econ. Dev. Rev. Bonds (The Evergreens), 5 5/8s, 1/1/38 BB+/P 1,500,000 1,532,160
NJ State Econ. Dev. Auth. Rev. Bonds
     (Ashland School, Inc.), 6s, 10/1/33 BBB 1,000,000 1,140,700
     (NYNJ Link Borrower, LLC), 5 3/8s, 1/1/43 BBB- 1,000,000 1,115,390
     (MSU Student Hsg. - Provident Group - Montclair LLC), 5 3/8s, 6/1/25 Baa3 2,000,000 2,228,320
     (Lions Gate), 5 1/4s, 1/1/44 BB-/P 300,000 311,586
     (Continental Airlines, Inc.), 5 1/4s, 9/15/29 BB- 3,000,000 3,297,240
     (United Methodist Homes), Ser. A, 5s, 7/1/29 BBB-/F 500,000 545,090
     5s, 6/15/26 Baa1 500,000 540,375
NJ State Econ. Dev. Auth. Fac. Rev. Bonds (Continental Airlines, Inc.), 5 5/8s, 11/15/30 BB- 1,500,000 1,703,475
NJ State Econ. Dev. Auth. Retirement Cmnty. Rev. Bonds (Seabrook Village, Inc.), 5 1/4s, 11/15/36 (Prerefunded 11/15/16) AAA/P 860,000 891,614
NJ State Econ. Dev. Auth. Wtr. Fac. Rev. Bonds (NJ American Wtr. Co.)
     Ser. A, 5.7s, 10/1/39 A1 2,600,000 2,933,008
     Ser. D, 4 7/8s, 11/1/29 A1 700,000 758,898
NJ State Hlth. Care Fac. Fin. Auth. Rev. Bonds
     (St. Joseph Hlth. Care Syst.), 6 5/8s, 7/1/38 Baa3 2,250,000 2,494,283
     (St. Peter's U. Hosp.), 6 1/4s, 7/1/35 Ba1 2,000,000 2,197,540
     (Princeton HealthCare Syst.), Ser. A, 5s, 7/1/39 Baa2 1,000,000 1,142,100
     (Holy Name Hosp.), 5s, 7/1/36 Baa2 2,500,000 2,525,525
North Hudson, Swr. Auth. Rev. Bonds, Ser. A, 5s, 6/1/42 A 1,000,000 1,098,720
Rutgers State U. VRDN, Ser. A, 0.01s, 5/1/18 VMIG1 3,000,000 3,000,000
Tobacco Settlement Fin. Corp. Rev. Bonds
     Ser. 1A, 5s, 6/1/41 B3 5,000,000 4,176,750
     Ser. 1A, 4 3/4s, 6/1/34 B3 2,210,000 1,844,753
     zero %, 6/1/41 A- 10,000,000 2,558,300
Union Cnty., Util. Auth. Resource Recvy. Fac. Lease Rev. Bonds (Covanta Union), Ser. A, 5 1/4s, 12/1/31 AA+ 1,450,000 1,595,493

39,631,320
New Mexico (1.7%)
Farmington, Poll. Control Rev. Bonds
     (Public Service Co. of San Juan, NM), Ser. D, 5.9s, 6/1/40 BBB+ 500,000 554,130
     (Public Service Co. of San Juan, NM), Ser. B, 4 7/8s, 4/1/33 BBB+ 4,500,000 4,557,420
     (AZ Pub. Svc. Co.), Ser. B, 4.7s, 9/1/24 A2 2,000,000 2,197,500

7,309,050
New York (8.3%)
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 600,000 684,612
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 1,002,650
NY City, Indl. Dev. Agcy. Special Fac. Rev. Bonds (American Airlines - JFK Intl. Arpt.), 7 1/2s, 8/1/16 B+/P 815,000 840,110
NY City, Muni. Wtr. & Swr. Fin. Auth. Rev. Bonds, 5s, 6/15/31(T) AA+ 10,000,000 11,835,271
NY State Dorm. Auth. Rev. Bonds, Ser. A, 5s, 3/15/38 AAA 1,500,000 1,748,370
NY State Dorm. Auth. Non-State Supported Debt Rev. Bonds (Orange Regl. Med. Ctr.), 6 1/4s, 12/1/37 Ba1 725,000 790,859
NY State Dorm. Auth. Non-Supported Debt Rev. Bonds (NYU Hosp. Ctr.), 5s, 7/1/34 A3 500,000 583,260
NY State Dorm. Auth. Revs. bonds, Ser. C, 5s, 3/15/31(T) AAA 5,000,000 5,844,619
NY State Energy Research & Dev. Auth. Gas Fac. Rev. Bonds (Brooklyn Union Gas), 6.952s, 7/1/26 A2 3,800,000 3,811,400
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 1,003,090
NY State Liberty Dev. Corp. 144A Rev. Bonds (World Trade Ctr.)
     Class 2, 5 3/8s, 11/15/40 BB-/P 750,000 803,310
     Class 1, 5s, 11/15/44 BB-/P 2,250,000 2,394,540
Onondaga, Civic Dev. Corp. Rev. Bonds (St. Joseph's Hosp. Hlth. Ctr.), 5 1/8s, 7/1/31 (Prerefunded 7/1/19) BB 1,620,000 1,847,642
Port Auth. NY & NJ Special Oblig. Rev. Bonds (JFK Intl. Air Term.), 6s, 12/1/42 BBB 1,000,000 1,169,110
Port Auth. of NY & NJ Rev. Bonds (Kennedy Intl. Arpt. - 5th Installment), 6 3/4s, 10/1/19 BBB-/P 100,000 100,021
Syracuse, Indl. Dev. Agcy. Civic Fac. VRDN (Syracuse U. ), Ser. A-1, 0.01s, 7/1/37 VMIG1 1,450,000 1,450,000

35,908,864
North Carolina (2.8%)
Dept. Trans. Private Activity Rev. Bonds (I-77 Hot Lanes), 5s, 12/31/37 BBB-/F 300,000 326,016
NC Eastern Muni. Pwr. Agcy. Syst. Rev. Bonds, Ser. C, 6 3/4s, 1/1/24 (Prerefunded 1/1/19) AAA/F 750,000 875,783
NC State Med. Care Cmnty. Hlth. Care Fac. Rev. Bonds
     (Presbyterian Homes), 5.4s, 10/1/27 BB/P 2,000,000 2,031,500
     (First Mtge. - Presbyterian Homes), 5 3/8s, 10/1/22 BB/P 1,110,000 1,134,598
NC State Med. Care Comm. Hlth. Fac. Rev. Bonds (Pennybyrn at Maryfield, Inc.), 5s, 10/1/35 BB/P 375,000 396,574
NC State Med. Care Comm. Retirement Fac. Rev. Bonds
     (Carolina Village), 6s, 4/1/38 BB/P 1,000,000 1,046,290
     (First Mtge.), Ser. A-05, 5 1/2s, 10/1/35 BB+/P 1,730,000 1,731,298
     (Salemtowne), 5 1/4s, 10/1/37 BB/P 385,000 402,179
     (First Mtge.), Ser. A-05, 5 1/4s, 10/1/25 BB+/P 95,000 95,095
     (Forest at Duke, Inc. (The)), 5 1/8s, 9/1/27 BBB+/F 1,000,000 1,026,720
     (Aldersgate United Methodist Church), 5s, 7/1/45 BB/P 825,000 864,394
     (United Church Homes & Svcs. Oblig. Group), Ser. A, 5s, 9/1/37 BB/P 500,000 509,410
NC State Med. Care Comm. Retirement Fac. Rev. Bonds (Salemtowne), 5 3/8s, 10/1/45 BB/P 1,615,000 1,693,651

12,133,508
Ohio (4.6%)
Buckeye, Tobacco Settlement Fin. Auth. Rev. Bonds
     Ser. A-3, 6 1/4s, 6/1/37 B- 850,000 791,350
     Ser. A-2, 6s, 6/1/42 B3 2,500,000 2,228,300
     Ser. A-2, 5 7/8s, 6/1/47 B3 3,500,000 3,086,195
     Ser. A-2, 5 7/8s, 6/1/30 B- 1,315,000 1,179,082
     Ser. A-2, 5 3/4s, 6/1/34 B- 3,675,000 3,252,706
Franklin Cnty., Hlth. Care Fac. Rev. Bonds (OH Presbyterian Retirement Svcs. (OPRS) Cmntys. Oblig. Group), Ser. A, 5 5/8s, 7/1/26 BBB- 2,250,000 2,414,295
Hickory Chase Cmnty. Auth. Rev. Bonds (Infrastructure Impt.), 7s, 12/1/38(F) CCC/P 644,000 56,479
Lake Cnty., Hosp. Fac. Rev Bonds (Lake Hosp. Syst., Inc.), Ser. C, U.S. Govt. Coll., 5 5/8s, 8/15/29 (Prerefunded 8/15/18) AAA/P 1,285,000 1,437,761
Lake Cnty., Hosp. Fac. Rev. Bonds (Lake Hosp. Syst., Inc.), Ser. C, 5 5/8s, 8/15/29 A3 245,000 271,387
OH State Higher Edl. Fac. Comm. Rev. Bonds (Kenyon College), 5s, 7/1/44 A1 800,000 887,264
OH State Private Activity Rev. Bonds (Portsmouth Bypass), AGM, 5s, 12/31/35 AA 750,000 847,845
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 1,618,820
Southeastern OH Port Auth. Hosp. Fac. Rev. Bonds
     5 3/4s, 12/1/32 BB/F 900,000 987,606
     (Memorial Hlth. Syst. Oblig. Group), 5s, 12/1/43 BB/F 150,000 153,975
Toledo-Lucas Cnty., Port Auth. Rev. Bonds (CSX Transn, Inc.), 6.45s, 12/15/21 Baa1 500,000 611,290

19,824,355
Oklahoma (0.8%)
Tulsa Cnty., Indl. Auth. Rev. Bonds (Sr. Living Cmnty. Montereau, Inc.), Ser. A, 7 1/8s, 11/1/30 BB-/P 1,250,000 1,365,288
Tulsa, Muni. Arpt. Trust Mandatory Put Bonds (6/1/25) (American Airlines, Inc.), 5s, 6/1/35 BB- 750,000 834,420
Tulsa, Muni. Arpt. Trust Rev. Bonds (American Airlines, Inc.), Ser. B, 5 1/2s, 12/1/35 B+/P 1,250,000 1,366,338

3,566,046
Oregon (0.4%)
Multnomah Cnty., Hosp. Fac. Auth. Rev. Bonds
     (Mirabella at South Waterfront), Ser. A, 5.4s, 10/1/44 BB-/P 500,000 552,330
     (Terwilliger Plaza, Inc.), 5s, 12/1/29 BBB/F 350,000 375,466
Warm Springs Reservation, Confederated Tribes 144A Rev. Bonds (Pelton Round Butte Tribal), Ser. B, 6 3/8s, 11/1/33 A3 700,000 772,079

1,699,875
Pennsylvania (4.2%)
Allegheny Cnty., Higher Ed. Bldg. Auth. Rev. Bonds (Robert Morris U.), Ser. A, 5 1/2s, 10/15/30 Baa3 1,000,000 1,083,220
Allegheny Cnty., Indl. Dev. Auth. Rev. Bonds (U.S. Steel Corp.), 6 3/4s, 11/1/24 B2 500,000 325,060
Chester Cnty., Indl. Dev. Auth. Rev. Bonds (Renaissance Academy Charter School), 5s, 10/1/34 BBB- 350,000 377,248
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 1,045,740
Lancaster Cnty., Hosp. Auth. Rev. Bonds (Brethren Village), Ser. A, 6 3/8s, 7/1/30 BB-/P 625,000 643,669
Lycoming Cnty., Auth. Hlth. Syst. Rev. Bonds (Susquehanna Hlth. Syst.), Ser. A, 5 3/4s, 7/1/39 A- 3,000,000 3,247,290
Moon, Indl. Dev. Auth. Rev. Bonds (Baptist Homes Society Oblig. Group), 5 3/4s, 7/1/35 B+/P 1,500,000 1,522,770
Northampton Cnty., Hosp. Auth. Mandatory Put Bonds (8/15/16) (St. Luke's Hosp. - Bethlehem), Ser. C, 4 1/2s, 8/15/32 A3 1,500,000 1,525,215
Northampton Cnty., Indl. Dev. Auth. Tax Alloc. Bonds (Rte. 33), 7s, 7/1/32 B/P 800,000 874,216
PA State Higher Edl. Fac. Auth. Rev. Bonds
     (Shippensburg U.), 6 1/4s, 10/1/43 Baa3 500,000 564,825
     (Gwynedd Mercy College), Ser. KK1, 5 3/8s, 5/1/42 BBB 785,000 840,044
     (Indiana U.), Ser. A, 5s, 7/1/41 BBB+ 500,000 529,750
PA State Tpk. Comm. Rev. Bonds, Ser. A, 5s, 12/1/38 A1 500,000 571,610
Philadelphia, Auth. for Indl. Dev. Rev. Bonds (Master Charter School), 6s, 8/1/35 BBB+ 1,055,000 1,153,706
Philadelphia, Gas Wks. Rev. Bonds, Ser. 9, 5s, 8/1/30 A- 1,000,000 1,114,210
Philadelphia, Hosp. & Higher Ed. Fac. Auth. Rev. Bonds (Graduate Hlth. Syst. Oblig. Group), 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 1,405,719
West Shore Area Auth. Rev. Bonds (Lifeways at Messiah Village), Ser. A, 5s, 7/1/35 BBB-/F 785,000 832,752
Wilkes-Barre, Fin. Auth. Rev. Bonds (Wilkes U.), 5s, 3/1/22 BBB 560,000 580,440

18,237,742
Puerto Rico (1.0%)
Children's Trust Fund Tobacco Settlement (The) Rev. Bonds, 5 5/8s, 5/15/43 Ba2 1,300,000 1,300,130
Cmnwlth. of PR, G.O. Bonds
     Ser. A, FGIC, 5 1/2s, 7/1/21 Caa3 1,000,000 770,000
     (Pub. Impt.), Ser. A, NATL, 5 1/2s, 7/1/20 AA- 1,000,000 1,035,520
Cmnwlth. of PR, Sales Tax Fin. Corp. Rev. Bonds, Ser. A
     5 3/8s, 8/1/39 Ca 1,850,000 698,375
     AMBAC, zero %, 8/1/47 Caa3 3,000,000 352,590

4,156,615
South Carolina (1.8%)
Georgetown Cnty., Env. Impt. Rev. Bonds (Intl. Paper Co.), Ser. A, 5s, 8/1/30 Baa2 1,135,000 1,137,474
SC State Pub. Svc. Auth. Rev. Bonds
     (Santee Cooper), Ser. A, 5 3/4s, 12/1/43 AA- 3,000,000 3,665,280
     Ser. A, 5 1/2s, 12/1/54 AA- 2,000,000 2,274,300
SC State Pub. Svcs. Auth. Rev. Bonds, Ser. A, 5s, 12/1/36(FWC) AA- 645,000 751,161

7,828,215
South Dakota (0.3%)
SD State Hlth. & Edl. Fac. Auth. Rev. Bonds (Sanford Oblig Group), 5s, 11/1/45 A1 1,250,000 1,408,013

1,408,013
Tennessee (0.4%)
Johnson City, Hlth. & Edl. Fac. Board Hosp. Rev. Bonds (Mountain States Hlth. Alliance), 6s, 7/1/38 Baa1 1,450,000 1,644,460

1,644,460
Texas (12.1%)
Brazos, Harbor Indl. Dev. Corp. Env. Fac. Mandatory Put Bonds (5/1/28) (Dow Chemical), 5.9s, 5/1/38 BBB 3,735,000 4,005,265
Central TX Regl. Mobility Auth. Rev. Bonds
     Ser. A, 5s, 1/1/45 BBB+ 250,000 281,978
     Ser. A, 5s, 1/1/40 BBB+ 500,000 566,540
     (Sr. Lien), Ser. A, 5s, 1/1/33 BBB+ 525,000 590,084
Clifton, Higher Ed. Fin. Corp. Rev. Bonds (Idea Pub. Schools)
     6s, 8/15/33 BBB 500,000 586,475
     5s, 8/15/32 BBB 315,000 341,611
Grand Parkway Trans. Corp. Rev. Bonds, Ser. B, 5 1/4s, 10/1/51 AA+ 2,000,000 2,279,440
Harris Cnty., Cultural Ed. Fac. Fin. Corp. Rev. Bonds (YMCA of the Greater Houston Area), Ser. A, 5s, 6/1/33 Baa3 1,000,000 1,086,070
Houston, Arpt. Syst. Rev. Bonds
     Ser. B-1, 5s, 7/15/35 BB- 2,500,000 2,652,625
     Ser. A, 5s, 7/1/24 A 1,500,000 1,728,015
     (United Airlines, Inc.), 4 3/4s, 7/1/24 BB- 1,300,000 1,455,675
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 1,303,907
     6 1/4s, 8/15/39 (Prerefunded 8/15/19) BBB 1,975,000 2,332,554
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 1,014,400
Love Field, Arpt. Modernization Corp. Special Fac. Rev. Bonds (Southwest Airlines Co.), 5 1/4s, 11/1/40 Baa1 3,500,000 3,870,160
Matagorda Cnty., Poll. Control Rev. Bonds
     (Central Pwr. & Light Co.), Ser. A, 6.3s, 11/1/29 Baa1 1,000,000 1,125,670
     (Dist. No. 1), Ser. A, AMBAC, 4.4s, 5/1/30 Baa1 1,250,000 1,394,650
New Hope, Cultural Ed. Fac. Fin. Corp. Rev. Bonds
     (Wesleyan Homes, Inc.), 5 1/2s, 1/1/43 BB-/P 500,000 515,240
     (NCCD College Station Properties, LLC), Ser. A, 5s, 7/1/47 Baa3 500,000 523,285
     (Collegiate Hsg.-Tarleton St.), 5s, 4/1/39 Baa3 500,000 526,310
     (TX A&M U. Collegiate & Student Hsg. College Station I, LLC), Ser. A, 5s, 4/1/29 Baa3 530,000 574,244
Newark, Cultural Ed. Fac. Fin. Corp. Rev. Bonds (AW Brown-Fellowship Leadership Academy), Ser. A, 6s, 8/15/42 BBB- 670,000 684,894
North Texas Edl. Fin. Co. Rev. Bonds (Uplift Edl.), Ser. A, 5 1/4s, 12/1/47 BBB- 2,000,000 2,163,980
North TX, Tollway Auth. Rev. Bonds
     (1st Tier), Ser. A, 6s, 1/1/25 A1 120,000 130,873
     (1st Tier), Ser. A, FNMA Coll., U.S. Govt. Coll., 6s, 1/1/25 (Prerefunded 1/1/18) AAA/P 880,000 966,962
     (Toll 2nd Tier), Ser. F, 5 3/4s, 1/1/38 (Prerefunded 1/1/18) A2 750,000 820,568
Red River, Hlth. Retirement Fac. Dev. Corp. Rev. Bonds
     (Happy Harbor Methodist Home, Inc.), Ser. A, 7 3/4s, 11/15/44 B-/P 420,000 495,025
     (Sears Methodist Retirement Syst. Oblig. Group), Ser. C, 6 1/4s, 5/9/53 (In default)(NON) D/P 39,000 59
     (Sears Methodist Retirement Syst. Oblig. Group), Ser. B, 6.15s, 11/15/49 (In default)(NON) D/P 749,000 1,124
     (Sears Methodist Retirement Syst. Oblig. Group), Ser. A, 6.05s, 11/15/46 (In default)(NON) D/P 441,000 662
     (Sears Methodist Retirement Syst. Oblig. Group), Ser. D, 6.05s, 11/15/46 (In default)(NON) D/P 76,000 114
     (Sears Methodist Retirement Syst. Oblig. Group), Ser. A, 5.45s, 11/15/38 (In default)(NON) D/P 1,124,000 1,686
     (Sears Methodist Retirement Syst. Oblig. Group), Ser. A, 5.15s, 11/15/27 (In default)(NON) D/P 593,000 890
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 2,011,140
     (Buckingham Sr. Living Cmnty., Inc.), Ser. A, 5 1/2s, 11/15/45 BB/F 1,000,000 1,041,380
     (Buckner Retirement Svcs., Inc.), 5 1/4s, 11/15/37 A- 1,900,000 1,982,707
     (Air Force Village), 5 1/8s, 5/15/27 BBB-/F 2,850,000 2,898,849
Travis Cnty., Cultural Ed. Fac. Fin. Corp. Rev. Bonds (Wayside Schools), Ser. A, 5 1/4s, 8/15/42 BB+ 1,000,000 1,018,700
TX Muni. Gas Acquisition & Supply Corp. I Rev. Bonds, Ser. A, 5 1/4s, 12/15/24 Baa1 2,000,000 2,424,280
TX Private Activity Surface Trans. Corp. Rev. Bonds
     (NTE Mobility), 7 1/2s, 12/31/31 Baa2 2,000,000 2,424,400
     (LBJ Infrastructure), 7s, 6/30/40 Baa3 2,500,000 3,023,700
TX State Dept. of Hsg. & Cmnty. Affairs Rev. Bonds, Ser. C, GNMA Coll., FNMA Coll., FHLMC Coll., 6.9s, 7/2/24 AA+ 200,000 201,500
TX State Muni. Gas Acquisition & Supply Corp. III Rev. Bonds, 5s, 12/15/28 A3 1,500,000 1,719,930

52,767,621
Virginia (2.5%)
Albemarle Cnty., Indl. Dev. Auth. Res. Care Fac. Rev. Bonds (Westminster-Canterbury), 5s, 1/1/24 BB/P 600,000 605,562
Alexandria, Indl. Dev. Auth. Res. Care Fac. Mtge. Rev. Bonds (Goodwin House, Inc.), 5s, 10/1/45 BBB/F 1,500,000 1,684,335
Cherry Hill Cmnty., Dev. Auth. 144A Special Assmt. Bonds (Potomac Shores), 5.4s, 3/1/45 B/P 1,000,000 1,031,810
Henrico Cnty., Econ. Dev. Auth. Res. Care Fac. Rev. Bonds (United Methodist Homes), 5s, 6/1/22 BB+/P 625,000 715,506
Lower Magnolia Green Cmnty., Dev. Auth. 144A Special Assmt. Bonds, 5s, 3/1/35 B/P 500,000 510,590
Lynchburg, Indl. Dev. Auth. Res. Care Fac. Rev. Bonds (Westminster-Canterbury)
     5s, 7/1/31 BB+/P 1,250,000 1,271,763
     4 7/8s, 7/1/21 BB+/P 1,000,000 1,025,410
VA State Small Bus. Fin. Auth. Rev. Bonds
     (Elizabeth River Crossings OPCO, LLC), 6s, 1/1/37 BBB- 900,000 1,037,106
     (Express Lanes, LLC), 5s, 7/1/34 BBB- 1,150,000 1,251,603
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 1,943,882

11,077,567
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 5,900,959
Port of Seattle, Rev. Bonds, Ser. C, 5s, 4/1/40 A1 625,000 698,956
Port Seattle, Port Indl. Dev. Corp. Rev. Bonds (Delta Airlines, Inc.), 5s, 4/1/30 BB+ 300,000 315,831
Skagit Cnty., Pub. Hosp. Rev. Bonds (Dist. No. 001), 5 3/4s, 12/1/35 Baa2 2,500,000 2,755,900
Tobacco Settlement Auth. of WA Rev. Bonds, 5 1/4s, 6/1/32 A- 1,275,000 1,416,551
WA State Higher Ed. Fac. Auth. Rev. Bonds (Whitworth U.), 5 5/8s, 10/1/40 Baa1 400,000 431,376
WA State Hlth. Care Fac. Auth. Rev. Bonds
     (WA Hlth. Svcs.), 7s, 7/1/39 (Prerefunded 7/1/19) Baa1 1,000,000 1,202,200
     (Kadlec Med. Ctr.), 5 1/2s, 12/1/39 (Prerefunded 12/1/20) AAA/P 1,300,000 1,568,203
     (Central WA Hlth. Svcs. Assn.), 4s, 7/1/36 Baa1 810,000 815,225
WA State Hsg. Fin. Comm. 144A Rev. Bonds (Heron's Key Oblig. Group), Ser. A, 7s, 7/1/50 B-/P 500,000 510,655

15,615,856
West Virginia (0.2%)
WV State Hosp. Fin. Auth. Rev. Bonds (Thomas Hlth. Syst.), 6 3/4s, 10/1/43 B+/P 735,000 779,203

779,203
Wisconsin (1.5%)
Pub. Fin. Auth. Arpt. Fac. Rev. Bonds (Sr. Oblig. Group), 5 1/4s, 7/1/28 BBB 350,000 383,838
WI State Hlth. & Edl. Fac. Auth. Rev. Bonds
     (St. Johns Cmntys. Inc.), Ser. A, 7 5/8s, 9/15/39 (Prerefunded 9/15/19) AAA/F 1,350,000 1,667,979
     (Prohealth Care, Inc.), 6 5/8s, 2/15/39 (Prerefunded 2/15/19) A1 1,250,000 1,461,200
     (St. John's Cmnty., Inc.), Ser. B, 5s, 9/15/45 BBB+/F 250,000 266,043
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 1,931,904
WI State Pub. Fin. Auth. 144A Rev. Bonds (Church Home of Hartford, Inc.), Ser. A, 5s, 9/1/30 BB/F 800,000 821,296

6,532,260

Total municipal bonds and notes (cost $512,186,709) $558,650,892

PREFERRED STOCKS (0.9%)(a)
Shares Value

MuniMae Tax Exempt Bond Subsidiary, LLC 144A Ser. A-5, 5s cum. pfd. 3,500,000 $3,798,550

Total preferred stocks (cost $3,500,000) $3,798,550

COMMON STOCKS (0.0%)(a)
Shares Value

Tembec, Inc. (Canada)(NON) 1,750 $1,162

Total common stocks (cost $1,273,945) $1,162

TOTAL INVESTMENTS

Total investments (cost $516,960,654)(b) $562,450,604














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, 2015 through January 31, 2016 (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 $435,067,696.
(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 $516,537,045, resulting in gross unrealized appreciation and depreciation of $53,385,677 and $7,472,118, respectively, or net unrealized appreciation of $45,913,559.
(NON) This security is non-income-producing.
(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 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 $18,262,495 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):
Health care 34.4%
Utilities 17.9
Transportation 17.0
Education 13.4

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 $31,817,535 were held by the TOB trust and served as collateral for $13,555,040 in floating-rate bonds outstanding. During the reporting period, the fund incurred interest expense of $491 for these investments based on an average interest rate of 0.03%.













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 $1,162 $— $—
Total common stocks 1,162
Municipal bonds and notes 558,581,218 69,674
Preferred stocks 3,798,550



Totals by level $1,162 $562,379,768 $69,674


* 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. Transfers are accounted for using the end of period pricing valuation method.
At the start and close of the reporting period, Level 3 investments in securities represented less than 1% of the fund's net assets and were not considered a significant portion of the fund's portfolio.

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



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

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

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

Putnam Managed Municipal Income Trust
By (Signature and Title):
/s/ Janet C. Smith
Janet C. Smith
Principal Accounting Officer
Date: March 25, 2016

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

By (Signature and Title):
/s/ Jonathan S. Horwitz
Jonathan S. Horwitz
Principal Executive Officer
Date: March 25, 2016

By (Signature and Title):
/s/ Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer
Date: March 25, 2016