Franklin Federal Limited-Term Tax-Free Income Fund

Fund Description

The fund seeks to provide investors with as high a level of income exempt from federal income taxes as is consistent with prudent investment management and the preservation of shareholders’ capital. The fund maintains a dollar-weighted average portfolio maturity of five years or less.

Strategy Statement

"In the Franklin Muni Department, we are committed to a conservative, disciplined investment strategy. We seek to provide shareholders with a high level of tax-free income while preserving capital."

Management

James Conn, CFA

James Conn, CFA®

  • Joined Franklin Templeton in 1996
  • Managed Fund Since 2003
John Pomeroy

John Pomeroy

  • Joined Franklin Templeton in 1986
  • Managed Fund Since 2003
Nicholas K. Bucklin, CFA

Nicholas K. Bucklin, CFA®

  • Joined Franklin Templeton in 2008
  • Managed Fund Since 2019

Rating

Overall Morningstar Rating As of 04/30/2019

Rating Category: Muni National Short

Morningstar
The fund's overall Morningstar Rating measures risk-adjusted returns and is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) rating metrics.

Historical Morningstar Rating As of 04/30/2019

Years Ratings Funds
in category
3
3 Stars
176
5
3 Stars
160
10
3 Stars
111

Morningstar Style Box

We do not publish a style box for this fund.

Strategy, Benefits, Results

Strategy

  • We take a conservative, income-oriented approach.
  • We don't use leverage or invest in derivatives, which can increase portfolio volatility.
  • Our analysts search for high-quality, undervalued bonds.
  • We seek to buy and hold bonds until maturity.

Benefits

  • Monthly income exempt from federal income taxes i.
  • Portfolio diversification
  • Tenured investment team with expertise across market cycles

Selling The Fund

  1. Call attention to Franklin's history of leadership in municipal bond asset management

  2. Highlight the fund's:

    • Weighted maturity of five years or less
    • Conservative investment strategy
    • Relatively low expense ratio
    • Experienced portfolio management team

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