Performance data quoted represents past performance, which does not guarantee
future results. Current performance may differ from figures shown. Investment
return and principal value will fluctuate with market conditions, and you may
have a gain or loss when you sell your shares.
Hypothetical $10,000 investment
$10,000 invested in the fund at inception, with all dividend and capital gain distributions reinvested, including sales charges, would be worth:
$36,208.00
as of September 30, 2009
(updated quarterly)
Inception Date 2 December 01, 1986
Fund's Benchmark3
A benchmark is a comparable broad-based index that can be used in evaluating a fund's performance.
Barclays Capital Municipal Bond Index
Max. Initial Sales Charge
4.25%
To view historical performance information, choose a month and year and click "Go."
Annual Total Return (For the past 10 years or since inception for younger funds)
Results in %
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
Including all sales charges
-10.44
-1.40
0.33
-0.36
-0.25
0.34
4.34
0.90
6.12
-8.18
Without sales charges
-6.44
2.94
4.77
4.03
4.22
4.74
8.99
5.40
10.88
-4.08
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Important Legal Information
Because municipal bonds are particularly sensitive to interest rate movements, the fund's yield and share price will fluctuate with market conditions. Bond prices, and thus the fund's share price, generally move in the opposite direction from interest rates. As the prices of bonds in a fund adjust to a rise in interest rates, the fund's share price may decline. It is important to note that the fund can only distribute what it earns and earnings are influenced by interest rates. When interest rates decline, fund earnings and dividend payments usually decline as well. This is what is known as income risk. Since the fund concentrates its investments in a single state, it is subject to greater risk of adverse economic and regulatory changes in that state than a geographically diversified fund. These and other risks are detailed in the fund's prospectus.
For investors subject to the alternative minimum tax, a small portion of fund dividends may be taxable. Distributions of capital gains are generally taxable. To avoid the imposition of 28% backup withholding on all fund distributions and redemption proceeds, U.S. investors must be properly certified on Form W-9 and non-U.S. investors on Form W-8BEN.
For more information on any of our funds, contact your financial advisor or download a free prospectus. Investors should carefully consider a fund's investment goals, risks, sales charges and expenses before investing. The prospectus contains this and other information. Please read the prospectus carefully before investing or sending money.
Footnotes
1.
After-tax average annual total returns represent the average change in value of an investment on an annualized basis. Returns are calculated using the highest individual federal income tax rates; state and local taxes are not considered. Your actual after-tax returns depend on your particular tax situation and may differ from those shown. The before shares sold calculation assumes taxes are paid on fund distributions (dividends and capital gains) but does not reflect taxes that may be incurred upon sale or exchange of shares. The after shares sold calculation also adjusts for taxes due if the fund investment is sold at the end of the measurement period.
2.
For performance reporting purposes, the inception date for Classes A, R, Z and Advisor Class shares of all Franklin Templeton Funds is the date of effectiveness of the fund's registration statement or the first day the fund commenced operations. For Classes B and C shares of those funds, except Mutual Series, Class B of the Franklin Income Fund, and Class C of the Franklin International Small Cap Growth Fund and the Franklin Large Cap Equity Fund, inception date is the first day the fund commenced offering such shares. Franklin Income Fund Class B uses the inception date of the old Class B shares, renamed Class B1, for performance reporting purposes. For Mutual Series Funds and Franklin International Small Cap Growth and Franklin Large Cap Equity Funds, the inception date for Classes A, B, C and R shares is the funds' oldest class', Z or Advisor, inception date.
3.
Indices are unmanaged and one cannot invest directly in them.
