Fixed Income

FQTHX Franklin Templeton SMACS: Series H

Overview

See the risks and other important information.

Fund Facts

Benchmark: Bloomberg Municipal Bond Index
Fund Inception Date: 06/03/2019
Dividend Frequency, if any: —

Sales Charges, Expenses & Fees

As of 01/01/2026

Gross Expense Ratio²: 0.86%
Net Expense Ratio^2,3: 0.00%
Maximum Initial Charge: —
CDSC: N/A
12b-1 Fee: —

Additional Fund Info

Share Class Inception Date: 06/03/2019
Investment Style: Municipals
Lipper Classification: High Yield Municipal Debt Funds
Morningstar Category⁴: Miscellaneous Fixed Income

Identifiers

Ticker: FQTHX
Fund Number: 3002
CUSIP Code: 35471D404

Manager and Commentary

About the Team

Franklin Templeton Fixed Income

A global leader in fixed income, the team strives to provide consistent and resilient returns by combining deep fundamental research with rigorous portfolio construction. This solutions-driven approach means maintaining portfolio and risk exposures that align with client expectations.

Franklin Templeton Fixed Income

Managed Fund Since 2020

Managed Fund Since 2019

Managed Fund Since 2020

Latest Insights

March 12, 2026

On My Mind: Not partying like it’s 1979

March 9, 2026

Municipal bond market monthly brief

March 2, 2026

On My Mind: Iran—Early considerations on market impact

February 19, 2026

On My Mind: Of bots and men—Investing in the age of AI

January 21, 2026

The municipal bond market outlook: Continued stability—a good sign for investors (new app)

Portfolio

Assets

As of02/28/2026 (Updated Monthly)

Total Net Assets: $41.87 Million

Positions

As of 02/28/2026 (Updated Monthly)

Number of Holdings

Fund: 223
Benchmark: 64,661

Portfolio Statistics

As of 02/28/2026 (Updated Monthly)

Average Weighted Maturity

Fund: 24.11 Years

Effective Duration

Fund: 9.55 Years

Asset Allocation

As of 02/28/2026 % of Total (Updated Monthly)

Asset Allocation
Holdings	Fund
Fixed Income	98.60%
Cash & Cash Equivalents	1.40%

Holdings
As of 01/31/2026 (Updated Monthly)

Franklin Dynamic Municipal Bond ETF ETF USD NPV TIS A/C #26175

Puerto Rico Sales Tax Financing Corp Sales Tax Revenue

State Of Illinois

Montgomery County Higher Education And Health Authority

Metropolitan Pier & Exposition Authority

New York Transportation Development Corp

Maricopa County Industrial Development Authority

City Of Houston TX Airport System Revenue

City Of Chicago IL

New York Transportation Development Corp

Distributions & Tax

Federal ID Number 83-4576636

For information on tax years prior to 2008, please contact us

These amounts represent distributions paid by the fund, foreign taxes passed through (if any), and other distribution characteristics for the calendar year selected. These amounts are reported to shareholders on Form 1099-DIV.

Distributions per Share ($)

Year

Tax Information
Record Date	Ordinary Dividends Dividends paid by a fund that are derived from interest, dividends, net short-term capital gains and other types of ordinary income earned by the fund. For a fund that elects to pass through its foreign taxes paid (a non-cash item), a shareholder's allotted share of foreign taxes has been added to the “Ordinary Dividends” cash distributions received by the shareholder. If the fund passed through foreign taxes paid and later is refunded any portion of those taxes by a foreign tax authority, any interest paid to the fund on that refund is also required to be included in “Ordinary Dividends”.	Qualified Dividends The portion of a fund’s “Ordinary Dividends” that may be eligible for a reduced capital gain tax rate. To be eligible for the lower tax rates, certain holding periods apply and shareholders should consult their tax advisor to determine the amount eligible for the reduced rate. This amount represents both cash distributions and non-cash amounts, such as foreign taxes paid, that have been allocated to shareholders.	Capital Gain Distributions	Unrecaptured Section 1250 Gain	Non-Taxable Return Of Capital	Section 199a Dividends The portion of a fund’s “Ordinary Dividends” generated by a real estate investment trust or earned by a fund from its investments in real estate investment trusts, subject to limitations. Individual (non-corporate) shareholders may be entitled to a special deduction from gross income for “Section 199A Dividends” received from a fund. To qualify for this deduction certain holding periods apply and shareholders should consult their tax advisor.	Foreign Tax Paid	Exempt Interest Dividends	Interest on Tax Reclaim Refunds
Jan 31	0.00181532	—	—	—	—	—	—	0.037597679	—
Feb 28	0.001650381	—	—	—	—	—	—	0.034181586	—
Mar 31	0.001727223	—	—	—	—	—	—	0.035773071	—
Apr 30	0.001802949	—	—	—	—	—	—	0.037341469	—
May 30	0.001884917	—	—	—	—	—	—	0.039039129	—
Jun 30	0.001679672	—	—	—	—	—	—	0.034788241	—
Jul 31	0.001856609	—	—	—	—	—	—	0.038452839	—
Aug 29	0.001936876	—	—	—	—	—	—	0.040115273	—
Sep 30	0.001364044	—	—	—	—	—	—	0.036373984	—
Oct 31	0.001515996	—	—	—	—	—	—	0.040425991	—
Nov 28	0.001352463	—	—	—	—	—	—	0.036065169	—
Dec 31	0.0015816	—	—	—	—	—	—	0.042175405	—
	0.02016805	—	—	—	—	—	—	0.452329836	—

Jan 31

Feb 28

Mar 31

Apr 30

May 30

Jun 30

Jul 31

Aug 29

Sep 30

Oct 31

Nov 28

Dec 31

Supplemental Tax Information

Foreign Source Income: —
Foreign Source Qualified Dividends: —
Direct U.S. Government Obligations The portion of “Ordinary Dividends” attributable to earnings from US Treasury and certain other government securities may be categorized as a fund containing US government obligations. This income may be exempt from state personal income taxes. The percentage for direct US government obligation interests available for tax-exempt treatment may be limited in states that require the fund to meet certain minimum thresholds. Shareholders should consult their tax advisor to determine the availability of exemptions in their state.: —
Specified Private Activity Bond Interest: 12.04%
Dividends Received Deduction: —
Section 163(j): 100.00%
Indiana Resident Taxable Income: —
Utah Resident Taxable Income The portion of “Exempt-Interest Dividends” subject to Utah income tax. Subject to certain exceptions, the state of Utah provides that income earned from non-federal government entities outside of Utah (non-Utah municipal bonds) is taxable to Utah resident shareholders. Income earned from states that do not tax Utah obligations are also exempt. Shareholders should consult their tax advisor about applicability.: —

Tax-Exempt Income By Jurisdiction

Alabama: 3.85%

Arizona: 2.12%

Arkansas: 0.58%

California: 7.02%

Colorado: 1.62%

Connecticut: 0.41%

Dist. of Columbia: 0.93%

Florida: 25.96%

Georgia: 0.28%

Illinois: 7.65%

Indiana: 0.97%

Iowa: 1.93%

Kentucky: 0.05%

Louisiana: 2.83%

Maryland: 1.70%

Massachusetts: 0.05%

Michigan: 1.70%

Minnesota: 0.29%

Missouri: 0.01%

Nevada: 0.78%

New Hampshire: 1.65%

New Jersey: 0.02%

New York: 5.53%

Ohio: 2.05%

Oklahoma: 0.43%

Oregon: 0.05%

Pennsylvania: 1.93%

Puerto Rico: 9.36%

South Dakota: 0.46%

Texas: 12.64%

Washington: 0.90%

Wisconsin: 4.25%

Franklin Templeton and its specialized investment managers and its employees are not in the business of providing tax or legal advice to taxpayers. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties or complying with any applicable tax laws or regulations. Tax-related statements, if any, may have been written in connection with the promotion or marketing of the transaction(s) or matter(s) addressed by these materials, to the extent allowed by applicable law. Each investor’s tax situation is different, and is based on an individual’s tax bracket, type of account used for investment and other factors. Any such taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.

Pricing

Pricing History

As of 03/13/2026 (Updated Daily)

Time Period

From

From Date

To Date

Daily Fund Prices

As of 03/13/2026

Share Prices

As of 03/13/2026

NAV ¹(Net Asset Value): $9.21
POP ⁵(Public Offering Price): $9.21

52-Week Range

Highest NAV As of 02/27/2026: $9.38
Lowest NAV As of 04/09/2025: $8.72

Documents

Regulatory Documents

Regulatory Documents
Checkbox	Name	Download
Checkbox	Annual Report - Franklin Templeton SMACS: Series H - Class A	Download Document
Checkbox	Annual Financial Statements and Other Information - Franklin Templeton Strategic Series	Download Document
Checkbox	Semi-Annual Report - Franklin Templeton SMACS: Series H - Class A	Download Document
Checkbox	Semi-Annual Financial Statements and Other Information - Franklin Templeton Strategic Series	Download Document
Checkbox	Prospectus - Franklin Strategic Series SMACS	Download Document
Checkbox	Summary Prospectus - Franklin Templeton SMACS: Series H	Download Document
Checkbox	Statement of Additional Information - Franklin Strategic Series SMACSMailed hardcopies unavailable.	Download Document
Checkbox	Fiscal Q1 Holdings - Franklin Strategic Series SMACSMailed hardcopies unavailable.	Download Document
Checkbox	Fiscal Q3 Holdings - Franklin Strategic Series SMACSMailed hardcopies unavailable.	Download Document

Risks

All investments involve risks, including possible loss of principal. Fixed income securities involve interest rate, credit, inflation and reinvestment risks, and possible loss of principal. As interest rates rise, the value of fixed income securities falls. Changes in the credit rating of a bond, or in the credit rating or financial strength of a bond’s issuer, insurer or guarantor, may affect the bond’s value. An investor may be subject to the federal. Liquidity risk exists when securities or other investments become more difficult to sell, or are unable to be sold, at the price at which they have been valued. Alternative Minimum Tax, and state and local taxes may apply. These and other risks are discussed in the fund’s prospectus. Low-rated, high-yield bonds are subject to greater price volatility, illiquidity and possibility of default. The portfolio is non-diversified and may invest in a relatively small number of issuers, which may negatively impact the performance and result in greater fluctuation in value. These and other risks are discussed in the fund’s prospectus.

Important Information

Total Returns include change in share price, assume reinvestment of all distributions, and reflect the deduction of fund expenses and applicable fees. Total returns, distribution rate, and yields reflect any applicable expense reductions and fee waivers; without these reductions, the results would have been lower.

Most funds offer multiple share classes. Share classes are subject to different fees and expenses, which will affect their performance.

Certain share classes are only offered to eligible investors as stated in the prospectus. Different minimums may apply to clients of certain service agents. All classes of shares are not available through all distribution channels. See the Fund's prospectus for additional information.

Franklin Distributors, LLC. Member FINRA, SIPC. All entities mentioned are Franklin Templeton affiliated companies. Investment Products: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE.
Reports and other information about the funds are available on the EDGAR Database on the SEC's Internet site at www.sec.gov.

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Important data provider notices and terms available at www.franklintempletondatasources.com.

Performance data quoted represents past performance, which does not guarantee future results.

CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Indexes are unmanaged and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges.

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.

The Bloomberg Municipal Bond Index is a broad measure of the municipal bond market with maturities of at least one year.
Source: Bloomberg Indices.

Footnotes

Net Asset Value - the amount per share you would receive if you sold shares that day. NAV Change indicates a change in the Net Asset Value from the previous business day.
Gross Expense Ratio reflects the total annual operating expenses for the share class shown, prior to the deduction of any waiver or reimbursement. Actual expenses may be higher and may impact portfolio returns. Net Expense Ratio reflects total expenses after any fee waivers, implemented expense caps or reimbursements. If a fund has contractual fee waivers, expense caps and/or reimbursements, the expiration date can be found by clicking on the information button next to the net expense ratio. Additional amounts may be voluntarily waived and/or reimbursed and may be modified or discontinued at any time without notice. Expense ratios are as of the most recent prospectus or annual report.
Net Expense Ratio represents the expense ratio applicable to investors.
©2025 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Public Offering Price – the purchase price for each share of the fund on a given day. It includes the maximum initial sales charge, if any.
Ratings shown are assigned by one or more Nationally Recognized Statistical Rating Organizations (NRSRO), such as S&P Global Ratings, Moody's Investors Service and Fitch Ratings, Inc. When ratings from multiple agencies are available, the highest is used, consistent with the portfolio investment process. Ratings reflect an NRSRO's opinion of an issuer's creditworthiness and typically range from AAA (highest) to D (lowest). The Refunded category consists of refunded bonds secured by the US government or other high-quality securities. The Not Rated category consists of ratable securities that have not been rated by an NRSRO. The Not Applicable category consists of third-party exchange-traded funds and securities that have only a short-term rating and are not cash equivalents. Cash includes equivalents, which may be rated. The methodology used for the calculation of credit quality ratings displayed may differ from the methodology for monitoring investment limits, if applicable. Please note, the portfolio itself has not been rated by an independent rating agency.

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