Putnam Investments is consolidating five closed-end funds this year, which will likely reduce fund expenses.
The change will also provide shareholders with enhanced liquidity opportunities either by merging the funds into open-end funds or through a tender offer by the fund to purchase up to 10% of the outstanding common shares.
Putnam Investment Grade Municipal Trust and Putnam Municipal Bond Fund will be merged into Putnam Municipal Opportunities Trust, bringing its total assets to around $1 billion. Putnam High Yield Municipal Trust will be merged with Putnam Managed Municipal Trust Income, bringing the fund’s total to $750 million.
Additionally, three closed-end funds will be merged into open-end funds.