Investment objective & strategy
As of Jan. 28, 2025 · prospectusObjective. The fund seeks as high a level of current income exempt from federal income tax and California personal income tax as the Investment Manager (as defined below) believes is consistent with preservation of capital.
Strategy. Investments We invest mainly in bonds that pay interest that is exempt from federal income tax and California personal income tax (but that may be subject to federal and/or California alternative minimum tax (AMT)), are investment-grade in quality, and have intermediate- to long-term maturities (i.e., three years or longer). Under normal circumstances, we invest so that at least 90% of the funds income distributions are exempt from federal income tax and California personal income tax, except during times of adverse market conditions, when more than 10% of the funds income distributions could be subject to these taxes. Such tax-exempt investments in which the fund invests are issued by or for states, territories or possessions of the United States or by … Investments We invest mainly in bonds that pay interest that is exempt from federal income tax and California personal income tax (but that may be subject to federal and/or California alternative minimum tax (AMT)), are investment-grade in quality, and have intermediate- to long-term maturities (i.e., three years or longer). Under normal circumstances, we invest so that at least 90% of the funds income distributions are exempt from federal income tax and California personal income tax, except during times of adverse market conditions, when more than 10% of the funds income distributions could be subject to these taxes. Such tax-exempt investments in which the fund invests are issued by or for states, territories or possessions of the United States or by their political subdivisions, agencies, authorities or other government entities, and the income from these investments is exempt from both federal and California personal income tax. This investment policy cannot be changed without the approval of the funds shareholders. We may consider, among other factors, credit, interest rate and prepayment risks, as well as general market conditions, when deciding whether to buy or sell investments.
Top holdings
As of Sept. 30, 2025 · N-PORT| Security | Ticker | Value | % of fund |
|---|---|---|---|
| California State Public Works Board (TOBs) | — | $12.09M | 1.90% |
| Los Angeles (City of), CA Department of Airports (Los Angeles International Airport), Series 2018 A, RB | — | $10.07M | 1.58% |
| CHANNELSIDE WATER RESOURCES LP 5.0% 11-21-45 | — | $9.97M | 1.57% |
| FREDDIE MAC MULTIFAMILY ML CERTIFICATES SER 2019-ML05 CL ACA 3.35000000 | — | $9.55M | 1.50% |
| Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International Airport, Senior Green Series 2022G | — | $9.15M | 1.44% |
| TOBACCO SECURITIZATION AUTH ST TOBGEN 06/48 FIXED 5 | TOBGEN | $8.85M | 1.39% |
| New Hampshire Business Finance Authority, Series 4, Class A | NFADEV | $8.59M | 1.35% |
| CALIFORNIA COMMUNITY VAR | CCEDEV | $8.37M | 1.32% |
| Chabot-Las Positas Community College District, Series C | CBTHGR | $7.45M | 1.17% |
| SAN DIEGO HSG AUTH-E | — | $7.41M | 1.16% |
Portfolio moves
Jun 30, 2025 → Sep 30, 2025How many positions this fund opened, exited, grew, trimmed, or left unchanged between its two most recent N-PORT snapshots — net changes between point-in-time reports, not a trade log.
Similar funds
Funds whose portfolios most overlap this one, by weight| Fund | Overlap | Net exp. |
|---|---|---|
| Franklin California Municipal Income ETF | 84% | 0.35% |
| California High-Yield Municipal Fund · BCHYX, CAYAX, CAYCX, BCHIX, ACYHX | 10% | 0.27% |
| MFS California Municipal Bond Fund · MCFTX, MBCAX, MCCAX, MCAVX, MPOAX | 9% | 0.49% |
Advisers
| Firm | Role |
|---|---|
| Franklin Advisers, Inc. | Adviser |
| Franklin Templeton Investment Management Limited | Sub-adviser |
| Putnam Investment Management, LLC | Sub-adviser |
Footnotes
- Expense ratio as of January 26, 2024, from the fund's prospectus.
- Net assets and holdings count as of September 30, 2025, from the fund's N-PORT filing.
- Total return for calendar year 2023, before tax and after fund expenses. Computed by compounding the twelve monthly total returns the fund reported in its SEC N-PORT filings for 2023 (the latest prospectus does not yet chart this year).
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