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.

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