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Fixed Income

Franklin Municipal Enhanced Income SMA

Year to Date Returns (Net)
1.08%
As of 06/30/2026
Year to Date Returns (Pure Gross)
1.83%

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This Separately Managed Account (SMA) is inclusive of a SMACS Series
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Overview

Product Facts

Strategy Description

The Franklin Fixed Income investment management team manages portfolios composed primarily of high-quality intermediate-term municipal bonds. Using a bottom-up, income focused strategy, we seek to offer capital preservation and appreciation, along with a high level of current tax-free income.

Benchmark
Bloomberg Municipal Bond Index
Inception Date
09/30/2006
Asset Class
Fixed Income
Yield to WorstAs of 08/31/2026 (Updated Monthly)
4.18%
Effective DurationAs of 11/30/2024 (Updated Monthly)
6.41350000

Average Annual Total Returns

View performance section for additional info As of 08/31/2026
  • 2.48%1 Year
  • 2.18%3 Years
  • -0.94%5 Years
  • 0.51%10 Years
  • 2.27%Since Inception
    09/30/2006

Prior to January 1, 2020, net-of-fee returns were based on actual fee and non-fee paying accounts used a model wrap fee. 

The strategy returns shown are preliminary composite returns, subject to future revision (downward or upward). Past performance is not a guarantee of future results. An investment in this strategy can lose value.  

Performance data represents past performance, which does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate with market conditions, and you may have a gain or loss when you sell your shares. Periods less than one year are not annualized. Performance results are for the composite which includes all actual, fully discretionary accounts with substantially similar investment policies and objectives managed to the composite's investment strategy. Composite returns are stated in U.S. dollars and assume reinvestment of any dividends, interest income, capital gains, or other earnings. The composite may include account(s) that are gross of fees and pure gross of fees. “Pure” gross-of-fee returns do not reflect the deduction of any expenses, including transaction costs. A traditional (or "true") gross-of-fee return reflects performance after the reduction of transaction costs but before the reduction of the investment advisory fee. The gross-of-fee return may include a blend of "true" gross-of-fee returns for non-wrap accounts and "pure” gross-of-fee returns for wrap accounts. Net-of-fee returns is reduced by a model “wrap fee” (1.5% is the maximum anticipated wrap fee for fixed income portfolios) which includes trading expenses as well as investment management, administrative and custodial fees. The model wrap fee used represents the highest anticipated wrap fee applicable to the strategy. Actual fees and account minimums may vary.   

For fee schedules, contact your financial professional, or if you enter into an agreement directly with Franklin Templeton Private Portfolio Group, LLC (“FTPPG”), refer to FTPPG’s Form ADV Part 2A disclosure document. Management and performance of individual accounts may vary for reasons that include the existence of different implementation practices and model requirements in different investment programs.

To obtain specific information on available products and services or a GIPS® Report, contact your Franklin Templeton separately managed account sales team at (800) DIAL BEN/342-5236.

Franklin Templeton claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.

Top Sectors

View portfolio section for additional info

As of 08/31/2026 % of Fixed Income (Updated Monthly)

Local General Obligation21.47%
Special Tax21.47%
Education11.79%
Transportation10.29%
Water/Sewer8.06%

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.

Commentary Highlights

June 30, 2026
  • Markets:  In the second quarter of 2026, new issuance of municipal (muni) bonds continued at a pace of more than 8% ahead of last year. By quarter-end, the yield on the benchmark 10-year (UST) had risen by 15 basis points (bps) to 4.47%, and the yield on the 30-year UST bond stood four bps higher at 4.95%. The June Federal Open Market Committee (FOMC) meeting was the first held under new Federal Reserve Chair Kevin Warsh. The FOMC left the policy rate unchanged at 3.50%-3.75%, but the meeting delivered a notable split: the dot plot and Summary of Economic Projections turned more hawkish and the statement removed the prior easing guidance, while Chair Warsh's press conference leaned dovish.
  • Contributors:  Overweight to BBB rated bonds, overweight to bonds with 30 years or more to maturity.
  • Detractors:  Exposure to higher-quality muni bonds.
  • Outlook:  Municipal bond valuations continue to appear attractive relative to other fixed income sectors, particularly for tax-sensitive investors seeking durable income in a normalized rate environment. In a more challenging environment, strong bottom-up research and disciplined security selection will be essential to identifying relative value and preserving portfolio quality.
Franklin Templeton Fixed Income
[Lloyd Nemerevers avatar]

Managed Strategy Since 2022

[April H Goodmans avatar]

Managed Strategy Since 2025

[Daniel C Riordans avatar]

Managed Strategy Since 2025

[Francisco Riveras avatar]

Managed Strategy Since 2021

[Dylan G. Sandersons avatar]

Managed Strategy Since 2019

[Jeff Snyders avatar]

Managed Strategy Since 2019

[Chris Sperrys avatar]

Managed Strategy Since 2021

Portfolio Manager Profile
Years of Experience
Manager Location

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Composite Performance

Risk/Return Profile (%)

Based on a 10 year period ending Jun-30-2026

Chart
Scatter chart with 3 data series.
The chart has 1 X axis displaying Risk (Annualized Standard Deviation) (%). Data range: 1.1500000000000004 categories.
The chart has 1 Y axis displaying Annualized Return (%). Data ranges from 0.72 to 2.15.
End of interactive chart.

The strategy returns shown are preliminary composite returns, subject to future revision (downward or upward). Past performance is not a guarantee of future results. An investment in this strategy can lose value.  

Performance data represents past performance, which does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate with market conditions, and you may have a gain or loss when you sell your shares. Periods less than one year are not annualized. Performance results are for the composite which includes all actual, fully discretionary accounts with substantially similar investment policies and objectives managed to the composite's investment strategy. Composite returns are stated in U.S. dollars and assume reinvestment of any dividends, interest income, capital gains, or other earnings. The composite may include account(s) that are gross of fees and pure gross of fees. “Pure” gross-of-fee returns do not reflect the deduction of any expenses, including transaction costs. A traditional (or "true") gross-of-fee return reflects performance after the reduction of transaction costs but before the reduction of the investment advisory fee. The gross-of-fee return may include a blend of "true" gross-of-fee returns for non-wrap accounts and "pure” gross-of-fee returns for wrap accounts. Net-of-fee returns is reduced by a model “wrap fee” (1.5% is the maximum anticipated wrap fee for fixed income portfolios) which includes trading expenses as well as investment management, administrative and custodial fees. The model wrap fee used represents the highest anticipated wrap fee applicable to the strategy. Actual fees and account minimums may vary.   

For fee schedules, contact your financial professional, or if you enter into an agreement directly with Franklin Templeton Private Portfolio Group, LLC (“FTPPG”), refer to FTPPG’s Form ADV Part 2A disclosure document. Management and performance of individual accounts may vary for reasons that include the existence of different implementation practices and model requirements in different investment programs.

To obtain specific information on available products and services or a GIPS® Report, contact your Franklin Templeton separately managed account sales team at (800) DIAL BEN/342-5236.

Franklin Templeton claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.

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Portfolio

Sector Allocation

As of 08/31/2026 % of Fixed Income (Updated Monthly)

Sector % of Total
Local General Obligation
21.47%
Special Tax
21.47%
Education
11.79%
Transportation
10.29%
Water/Sewer
8.06%
State General Obligation
5.76%
Hospital
5.22%
Prerefunded
4.36%
Leasing
3.47%
Other
3.35%
IDR/PCR
2.65%
Housing
2.09%
Electric
0.01%
Resource Recovery
0.00%
Chart
Bar chart with 14 bars.
The chart has 1 X axis displaying categories.
The chart has 1 Y axis displaying values. Data ranges from 0.00094 to 21.46901.
End of interactive chart.

Top Securities

As of 08/31/2026 (Updated Monthly)

Holdings Portfolio
KATY TX DEV AUTH REVENUE KATDEV 5.000 06/01/30
4.74%
FLORIDA ST DEPT OF TRANSN FEDE FLSTRN 5.000 07/01/29
4.66%
WEST JORDAN UT WTR REVENUE WESWTR 4.000 06/01/28
4.50%
LOVEJOY TX INDEP SCH DIST LOVSCD 5.000 02/15/27
4.43%
FLORIDA ST DEPT ENVRNMNTL PROT FLSENV 5.000 07/01/32
4.15%
WASHINGTON ST WAS 5.000 02/01/39
4.01%
E TROY WI CMNTY SCH DIST EASSCD 5.000 03/01/38
3.98%
UNIV OF UTAH UT REVENUES UNIHGR 5.000 08/01/40
3.97%
WAUKESHA WI WAU 5.000 10/01/31
3.75%
MASON CNTY WA SCH DIST #402 PI MASSCD 5.000 12/01/35
3.51%
 
Bar chart with 10 bars.
The chart has 1 X axis displaying categories.
The chart has 1 Y axis displaying values. Data ranges from 3.51278 to 4.74441.
End of interactive chart.

Holdings of the same issuers have been combined. All data is subject to change. The information provided is not a recommendation to purchase, sell, or hold any particular security. The portfolio manager reserves the right to withhold release of information with respect to holdings that would otherwise be included. Weightings as percent of total. Percentage may not total 100% due to rounding. 

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Documents

Product Documents

Factsheet - Franklin Municipal Enhanced Income SMA
Product Commentary - Franklin Municipal Enhanced Income SMA
FTPPG Regulatory Disclosures
Mailed hardcopies unavailable.

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. Low-rated, high-yield bonds are subject to greater price volatility, illiquidity and possibility of default. Investments in underlying funds are subject to the same risks as, and indirectly bear the fees and expenses of, the underlying funds. 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. Active management does not ensure gains or protect against market declines. Portfolios focused on a single state are subject to greater risk of adverse economic and regulatory changes than a geographically diversified portfolio.

Separately Managed Accounts (SMAs) are investment services provided by Franklin Templeton Private Portfolio Group, LLC (FTPPG), a federally registered investment advisor. Client portfolios are managed based on investment instructions or advice provided by affiliated subadvisors of Franklin Templeton. Management is implemented by FTPPG, the designated subadvisor or, in the case of certain programs, the program sponsor or its designee. 

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Franklin Templeton (FT) is not undertaking to provide impartial advice. Nothing herein is intended to provide fiduciary advice. FT has a financial interest.

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

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. 

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

All entities mentioned are Franklin Templeton affiliated companies. Investment Products: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE.

Footnotes

  1. Credit Quality is a measure of a bond issuer's ability to repay interest and principal in a timely manner. The credit ratings shown are based on each portfolio security's rating as provided by S&P Global Ratings, Moody's Investors Service and/or Fitch Ratings, Inc. and typically range from AAA (highest) to D (lowest), or an equivalent and/or similar rating. For this purpose, the manager assigns each security the middle rating from these three agencies. When only two agencies provide ratings, the lower of the two ratings will be assigned. When only one agency assigns a rating, that rating will be used. Foreign government bonds without a specific rating are assigned a country rating, if available. Securities that are unrated by all three agencies are reflected as such. The credit quality of the investments in the portfolio does not apply to the stability or safety of the portfolio. 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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