Investment objective & strategy
As of March 27, 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. Investments We invest mainly in bonds that pay interest that is exempt from federal income tax (but that may be subject to federal alternative minimum tax (AMT)) and that have short-term maturities (i.e., three years or less). The bonds we invest in are mainly investment-grade in quality. Under normal circumstances, we invest at least 80% of the funds net assets in tax-exempt investments, which for purposes of this policy include investments paying interest subject to the federal AMT for individuals. 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. Investments We invest mainly in bonds that pay interest that is exempt from federal income tax (but that may be subject to federal alternative minimum tax (AMT)) and that have short-term maturities (i.e., three years or less). The bonds we invest in are mainly investment-grade in quality. Under normal circumstances, we invest at least 80% of the funds net assets in tax-exempt investments, which for purposes of this policy include investments paying interest subject to the federal AMT for individuals. 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 Aug. 31, 2025 · N-PORT| Security | Ticker | Value | % of fund |
|---|---|---|---|
| Putnam Short Term Investment Fund, Class P | — | $6.00M | 3.34% |
| Arizona Board of Regents, University of Arizona, System Revenue Bonds, Green Series 2016B | — | $3.31M | 1.84% |
| Polk County Housing Finance Authority, Episcopal Catholic Apartments, Series 2023 | — | $3.03M | 1.68% |
| KNOXVILLE TN CMNTY DEV CORP MF REVENUE | — | $3.02M | 1.68% |
| NC CUMPOL 12/01/2027 | CUMPOL | $3.00M | 1.67% |
| DALLAS TX HSG FIN CORP CITY OF DALLAS HOUSING FINANCE CORP | — | $2.76M | 1.54% |
| EL PASO TX INDEP SCH DIST EL PASO INDEPENDENT SCHOOL DISTRICT | — | $2.52M | 1.40% |
| CALIFORNIA HSG FIN AGY AFFORDABLE HSG REVENUE | — | $2.51M | 1.40% |
| King County Housing Authority, Series 2008 | — | $2.50M | 1.39% |
| Water Works Board of the City of Birmingham (The), Series 2024 | BIRWTR | $2.50M | 1.39% |
Portfolio moves
May 31, 2025 → Aug 31, 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 Short-Term Municipal Income ETF | 71% | 0.21% |
| Franklin Federal Limited-Term Tax-Free Income Fund · FFTFX, FTFZX, FFTRX, FFLQX | 12% | 0.38% |
| Putnam Strategic Intermediate Municipal Fund · PPNAX, PTFIX | 10% | 0.56% |
Advisers
| Firm | Role |
|---|---|
| Franklin Advisers, Inc. | Adviser |
| Franklin Templeton Investment Management Limited | Sub-adviser |
| Putnam Investment Management, LLC | Sub-adviser |
Footnotes
- Net assets and holdings count as of August 31, 2025, from the fund's N-PORT filing.
Machine-readable: JSON · Markdown. Programmatic access via the agent surface.