Franklin California High Yield Municipal Fund

Fund Description

The fund seeks to provide investors with a high level of income exempt from federal and California personal income taxes, with capital appreciation as a secondary goal, by investing in municipal securities of any rating category, including higher yielding, lower-rated securities

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 1993
Chris Sperry, CFA

Chris Sperry, CFA®

  • Joined Franklin Templeton in 1996
  • Managed Fund Since 2004

Rating

Overall Morningstar Rating As of 02/28/2019

Rating Category: Muni California Long

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 02/28/2019

Years Ratings Funds
in category
3
5 Stars
90
5
5 Stars
89
10
5 Stars
71

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We do not publish a style box for this fund.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 taxes and California personal income taxes.i.
  • Portfolio diversification.
  • Tenured investment team with expertise across market cycles.

Selling The Fund

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

  2. Highlight the fund's:

    • Plain vanilla approach – no leverage, no derivatives
    • Attractive taxable-equivalent yield
    • Relatively low expense ratio
    • Experienced portfolio management team
    • Large, in-house research team

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