Franklin High Yield Tax-Free Income Fund

Fund Description

The fund seeks to provide a high current yield exempt from federal income taxes. Its secondary goal is capital appreciation to the extent possible and consistent with the fund’s principal investment goal.

Strategy Statement

"In the Franklin Muni Department, we are committed to a conservative, disciplined investment strategy. For over 30 years, we have worked to provide shareholders with a high level of tax-free income."

Management

John Wiley

John Wiley

  • Joined Franklin Templeton in 1989
  • Managed Fund Since 1991
Francisco Rivera

Francisco Rivera

  • Joined Franklin Templeton in 1994
  • Managed Fund Since 2004
Daniel Workman, CFA

Daniel Workman, CFA®

  • Joined Franklin Templeton in 2003
  • Managed Fund Since 2009

Rating

Overall Morningstar Rating As of 06/30/2019

Rating Category: High Yield Muni

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 06/30/2019

Years Ratings Funds
in category
3
3 Stars
155
5
3 Stars
134
10
3 Stars
87

Morningstar Style Box

We do not publish a style box for this fund.

Strategy, Benefits, Results

Strategy

  • We seek to provide a high current yield.
  • We don't use leverage or invest in derivatives, which can increase portfolio volatility.
  • Our analysts search for attractively valued, higher-yielding bonds.
  • We buy and hold for the long term.

Benefits

  • Monthly income exempt from federal income taxesi
  • 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:
    • Plain vanilla approach—no leverage, no derivatives
    • Attractive taxable-equivalent yield
    • Historically lower volatility record
    • Relatively low expense ratio
    • Experienced portfolio management team
    • Large, in-house research team

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