Franklin California Ultra-Short Tax-Free Income Fund

Fund Description

The fund seeks to provide investors with as high a level of income exempt from federal income taxes and California personal 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 one year 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."

Chris Sperry, CFA®

Management

John Bonelli

John Bonelli

  • Joined Franklin Templeton in 2010
  • Managed Fund Since 2016
Chris Sperry, CFA

Chris Sperry, CFA®

  • Joined Franklin Templeton in 1996
  • Managed Fund Since 2016

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, short-term municipal securities
  • We maintain a dollar-weighted average portfolio maturity of 1 year or less

Benefits

  • Monthly income exempt from federal income taxes and California personal income taxesi
  • A diversified portfolio can lead to lower overall risk and generate income. Diversification does not guarantee a profit or protect against the risk of loss
  • Tenured investment team with expertise across market cycles

i. For investors subject to the alternative minimum tax, a small portion of fund dividends may be taxable. Distributions of capital gains are generally taxable.

Selling The Fund

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

  2. Highlight the fund's:

    • Conservative investment strategy
    • An attractive potential alternative to a money market fund with a broader investment universe
    • Relatively low expense ratio
    • Experienced portfolio management team

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