Putnam Mortgage Securities Fund to Convert Into ETF in 2027

Franklin Templeton plans to convert the Putnam Mortgage Securities Fund from a mutual fund into a newly created ETF through a merger expected in the first quarter of 2027. The acquiring ETF will retain the fund’s investment objective, portfolio management team, and substantially similar strategies and risks, while adding risks associated with the ETF structure. The transaction is expected to qualify as a tax-free reorganization, and shareholder approval is not required. Investors will generally receive ETF shares of equal value, provided their brokerage accounts can hold ETFs.