Investment objective & strategy
As of Nov. 24, 2025 · prospectusObjective. The fund seeks as high a level of current income exempt from federal income tax as the Investment Manager (as defined below) believes is consistent with preservation of capital.
Strategy. The fund invests mainly in bonds that pay interest that is exempt from federal income tax (but that may be subject to federal alternative minimum tax (AMT)). The fund normally maintain an average dollar-weighted maturity between three and ten years. The fund may invest broadly in municipal bonds of any duration (a measure of the sensitivity of a bonds price to interest rate changes), maturity and credit quality although the bonds in which the fund invests are mainly investment-grade in quality. The fund may also invest in investments that are below-investment-grade (sometimes referred to as junk bonds), which can be more sensitive to changes in markets, credit conditions, and interest rates, and may be considered speculative. Under normal circumstances, the … The fund invests mainly in bonds that pay interest that is exempt from federal income tax (but that may be subject to federal alternative minimum tax (AMT)). The fund normally maintain an average dollar-weighted maturity between three and ten years. The fund may invest broadly in municipal bonds of any duration (a measure of the sensitivity of a bonds price to interest rate changes), maturity and credit quality although the bonds in which the fund invests are mainly investment-grade in quality. The fund may also invest in investments that are below-investment-grade (sometimes referred to as junk bonds), which can be more sensitive to changes in markets, credit conditions, and interest rates, and may be considered speculative. Under normal circumstances, the fund invests at least 80% of the funds net assets in tax-exempt investments. Investments paying interest subject to the federal AMT for individuals are considered tax-exempt investments for purposes of this policy. This investment policy cannot be changed without the approval of the funds shareholders. The fund may invest up to 20% of its net assets in securities the income on which is subject to federal income tax and may invest without limit in investments the income on which is subject to the AMT. The Investment Manager 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 Jan. 31, 2026 · N-PORT| Security | Ticker | Value | % of fund |
|---|---|---|---|
| Putnam Short Term Investment Fund, Class P | — | $99.64M | 4.35% |
| TX TTFTRN 5.5 10/01/2055 | TTFTRN | $32.50M | 1.42% |
| Main Street Energy, Inc., Series D | MSEPWR | $27.00M | 1.18% |
| LOS ANGELES CA DEPT OF ARPTS ARPT REVENUE | — | $23.16M | 1.01% |
| Public Energy Authority of Kentucky, Gas Supply Revenue Bonds, Series 2025B | KYSPWR | $22.27M | 0.97% |
| NYC NY 5.25% 9/1/46 | — | $21.29M | 0.93% |
| COLORADO ST HLTH FACS AUTH REV REGD B/E 5.00000000 | — | $21.16M | 0.92% |
| SOUTHEAST ENERGY AUTH VAR | SEEPWR | $20.39M | 0.89% |
| S E ENERGY-B-REV | ESDPWR | $19.54M | 0.85% |
| TX DALAPT 5.25 11/01/2042 | DALAPT | $19.14M | 0.84% |
Portfolio moves
Oct 31, 2025 → Jan 31, 2026How 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 Federal Intermediate-Term Tax-Free Income Fund · FKITX, FCITX, FITZX, FITQX, FKQTX | 11% | 0.41% |
| Franklin Dynamic Municipal Bond ETF · FLMI | 11% | 0.30% |
| Putnam Municipal Opportunities Trust | 11% | — |
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 November 24, 2025, from the fund's prospectus.
- Net assets and holdings count as of January 31, 2026, from the fund's N-PORT filing.
- Total return for calendar year 2025, before tax and after fund expenses. Computed by compounding the twelve monthly total returns the fund reported in its SEC N-PORT filings for 2025 (the latest prospectus does not yet chart this year).
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