Putnam Announces Formal Approval of Two Closed-End Fund Mergers.BOSTON -- Putnam Investments Putnam Investments was founded in 1937 by George Putnam. At the same time, he founded its first mutual fund offering, The George Putnam Fund of Boston.[1] Putnam has offices in London and Tokyo, and its headquarters is located in Boston, Massachusetts. and the Board of Trustees board of trustees Politics The posse of thugs who oversee an institution's administration. See Board of directors. of the Putnam Funds announced today that the Board of Trustees has formally approved the merger of Putnam New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Investment Grade Municipal Trust (AMEX AMEX See: American Stock Exchange : PMN PMN abbr. polymorphonuclear leukocyte PMN polymorphonuclear neutrophil. PMN Polymorphonuclear leukocyte, see there ) into the open-end Putnam New York Tax Exempt Income Exempt Income Certain types of income that are not subject to income tax. Notes: Examples of exempt income include: gifts under $10,000, death benefits, health benefits, and some scholarships. See also: Exemption Fund and the merger of Putnam Tax-Free Health Care Fund (NYSE NYSE See: New York Stock Exchange : PMH PMH abbr. past medical history ) into the open-end Putnam Tax Exempt Income Fund. Each of these mergers, which were approved in principle by the Trustees in February 2007, would give shareholders shares of an open-end fund Open-End Fund A mutual fund that continues to sell shares to investors, and will buy back shares when investors wish to sell. Notes: Open-end funds have no limit to the number of shares they can issue. The majority of mutual funds are open end. , with the opportunity to realize the full net asset value of their shares following the merger (less a redemption fee Redemption fee A fee some mutual funds charge when an investor sells shares within a specified short period of time. of 1% of amounts redeemed within seven days after the merger). In giving their approval, the Trustees considered, among other things, the possibility that these funds would not be able to continue to operate in their present closed-end form, the pattern of trading discounts, changes in the Funds' shareholder base over time, and requests from shareholders for enhanced liquidity. It is currently expected that the merger of PMN into Putnam New York Tax Exempt Income Fund will be concluded in late June or early July, while the merger of PMH into Putnam Tax Exempt Income Fund is expected to occur later in the summer. Each plan of merger is subject to the approval of fund shareholders and certain other conditions. These mergers are part of a continuing effort by Putnam Investments and the Funds' Trustees to maintain a diverse array of closed-end products, while taking into account changing market circumstances. Putnam Investments believes that the closed-end funds continue to hold an important position in the broad range of Putnam products. As announced in February, this initiative includes other mergers involving closed-end funds and tender offers for shares of eight closed-end funds. The Trustees meet regularly with Putnam Investments regarding the closed-end funds, and they carefully monitor the funds' performance, the trading prices of fund shares and the expressed views of shareholders in the funds. In managing the closed-end funds, especially during periods of significant trading discounts, Putnam Investments works with the Trustees to take actions that they believe are in the long-term best interests of fund shareholders. The mergers and tender offer program announced in February are consistent with actions taken by Putnam Investments and the Trustees in recent years, including: * Instituting a share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program, under which each fund is authorized to repurchase up to 10% of its outstanding shares over a 2-year period ending in October 2007. This program enhances shareholder value, as repurchases made at a discount increase the net asset value per share of a fund's remaining shares, and has made a meaningful contribution to investment return. The program has been suspended indefinitely for PMH and PMN because of the announced mergers, but remains in effect for all other funds. * Management fee reductions for most of the closed-end funds, effective January 1, 2006. * Merging two pairs of closed-end funds together for greater efficiencies in 2005, and merging one closed-end Fund into an open-end fund managed by Putnam Investments in 2006. * Promoting the funds with enhanced disclosure and providing greater transparency to investors on the merits on the merits adj. referring to a judgment, decision or ruling of a court based upon the facts presented in evidence and the law applied to that evidence. A judge decides a case "on the merits" when he/she bases the decision on the fundamental issues and considers of the closed-end funds. * Expanding the tools available to fund management teams, including a 2005 initiative to allow the taxable income Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer. funds to employ leverage through borrowing. The foregoing is not an offer to sell, nor a solicitation of an offer to buy, shares of any fund, nor is it a solicitation of any proxy. For more information regarding the Putnam Funds, or to receive a free copy of materials filed with the SEC, including a prospectus/proxy statement relating to a proposed merger (and containing important information about fees, expenses and risk considerations) once a registration statement relating to such merger has been filed with the SEC and becomes effective, please visit www.putnam.com. Free copies of such materials can also be found on the SEC's website (http://www.sec.gov). Please read any applicable prospectus/proxy statement carefully before making any investment decisions. About Putnam Investments: At Putnam Investments, the top priority remains prudently managing money for our retail and institutional clients worldwide. Since 1937, the company's values have been rooted in a profound sense of responsibility for the money entrusted to it. Putnam uses a research-driven team approach to seek consistent, dependable, superior investment results over time, although there is no guarantee a fund will meet its objectives. Putnam is committed to doing what's right for investors, including maintaining stringent investor protections for every Putnam fund. Founded in 1937, Putnam Investments is one of the world's oldest and largest money management firms. As of March 31, 2007, Putnam managed $188 billion in assets, of which $119 billion is for mutual fund investors and $69 billion is for institutional accounts. Putnam has offices in Boston, London and Tokyo. For more information, go to www.putnam.com |
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