Fixed Income

Franklin Municipal Ladder 1-15 Year SMA

Tax-free income. Seeks to provide investors with as high a level of income exempt from federal income taxes as is consistent with prudent investment management and the preservation of investors’ capital.
Diversified maturities. A diversified set of municipal bonds with laddered maturities helps create a stable stream of cash flow.
Experienced portfolio management team. Tenured investment team with expertise across market cycles.

Overview

See additional performance disclosures in the performance section.

Product Facts

Strategy description

The Franklin Municipal Ladder 1-15 Year SMA seek a high level of current income by investing across different municipal issuers. At least every other year in the ladder will have a municipal position with a corresponding maturity in that year for the complete maturity range of the strategy.

Benchmark: Bloomberg Municipal 1-15 Year Index
Inception Date: 12/31/2019
Asset Class: Fixed Income
Yield to Worst As of 09/30/2025 (Updated Monthly): 2.95%
Effective Duration As of 09/30/2025 (Updated Monthly): 5.61 Years

Average Annual Total Returns As of 09/30/2025

View performance section for additional info As of 09/30/2025

Net

Pure Gross

0.69%1 Year
2.48%3 Years
-0.70%5 Years
—10 Years
-0.16%Since Inception
12/31/2019

Performance data quoted represents past performance, which does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the figures shown.

Top Sectors

View portfolio section for additional info

As of 09/30/2025 % of Total (Updated Monthly)

Local43.39%

State General Obligation25.89%

Utilities19.14%

Lease6.89%

Special Tax2.36%

Manager and Commentary

About the Team

Franklin Templeton Fixed Income

Franklin Templeton Fixed Income is a fixed income specialist with a measured "no surprises" approach that is committed to the goal of delivering clients consistent, predictable fixed income results. We pursue dimensional sources of potential alpha across all global fixed income securities, sectors, and markets.

Commentary Highlights

June 30, 2025

Markets: There were large swings in financial market sentiment across the second quarter of 2025. In early April, US President Donald Trump announced significant increases in US tariff rates as part of his “Liberation Day.” Subsequently, a temporary pause (in many cases 90 days) in increased levies helped calm some of the market nerves. The passage of the “One Big Beautiful Bill” spending package after quarter-end further reduced the uncertainties that had been a strong headwind to municipal (muni) bond markets as it affirmed the tax-exempt status of muni securities.
Contributors: Overweight to higher-rated muni bonds. Overweight allocation to general obligation (GO) muni bonds.
Detractors: Overweight to muni bonds with seven to 15 years to maturity.
Outlook: Municipal bond valuations continue to appear attractive to us, particularly on a tax-adjusted basis, with yields near multi-year highs. In a more challenging environment, strong bottom-up research and disciplined security selection will be essential to identifying relative value and potentially preserving portfolio quality.

For complete information, please see the full commentary

Franklin Templeton Fixed Income

Managed Strategy Since 2022

Managed Strategy Since 2025

Managed Strategy Since 2021

Managed Strategy Since 2020

Managed Strategy Since 2021

Latest Insights

October 30, 2025

On My Mind: Dancing in the dark

October 28, 2025

Flash Insights: New York (City) state of mind—NYC mayoral election

October 9, 2025

Central Bank Watch: Measured moves

September 22, 2025

On My Mind: The risky business of risk management

Composite Performance

Calendar Year Returns

As of 09/30/2025

Franklin Municipal Ladder 1-15 Year SMA - Net (%)

Franklin Municipal Ladder 1-15 Year SMA - Pure Gross (%)

Bloomberg Municipal 1-15 Year Index (%)

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.

Portfolio

Portfolio Statistics

As of 09/30/2025 (Updated Monthly)

AMT Exposure

Portfolio: 0.00%

Effective Duration

Portfolio: 5.61 Years

Weighted Average Coupon

Portfolio: 4.94%

Weighted Average Price

Portfolio: 109.52

Yield to Maturity
Yield to Maturity (‘YTM’) also known as the ‘Gross Redemption Yield’ or ‘Redemption Yield’. The rate of return anticipated on a bond if it is held until the maturity date. YTM is considered a long-term bond yield expressed as an annual rate. The calculation of YTM takes into account the current market price, par value, coupon interest rate and time to maturity. It is also assumed that all coupons are reinvested at the same rate.

Portfolio: 3.09%

Weighted Average Maturity

Portfolio: 7.60 Years

Yield to Worst
The yield to maturity if the worst possible bond repayment takes place. If market yields are higher than the coupon, the yield to worst would assume no prepayment. If market yields are below the coupon, the yield to worst would assume prepayment. In other words, yield to worst assumes that market yields are unchanged. Normally this value is not aggregated since it varies but if a weighted average value is used for a portfolio then the figure will reflect the values of the underlying issues, based on the size of each holding

Portfolio: 2.95%

Information is based on the composite.

Sector Allocation

As of 09/30/2025 % of Total (Updated Monthly)

Sector Allocation
Sector	% of Total
Local	43.39%
State General Obligation	25.89%
Utilities	19.14%
Lease	6.89%
Special Tax	2.36%
Transportation	2.33%

Information is based on the composite.

Top Securities

As of 09/30/2025 (Updated Monthly)

Top Securities
Holdings	Portfolio
DIST OF COLUMBIA DIS 5.000 06/01/28	7.15%
FISHERS IN REDEV AUTH LEASE RE FISDEV 5.000 07/15/35	6.89%
PORT ANGELES WA WTR & WSTWTR U PTAUTL 5.000 11/01/29	6.83%
FLORIDA ST FLS 5.000 07/01/32	6.48%
WHITEFISH BAY WI WFB 5.000 05/01/33	6.47%
TOOELE CNTY UT SCH DIST TOOSCD 5.000 06/01/37	6.30%
INDIANA FIN AUTH IN WSTWTR UTI INSUTL 5.000 10/01/26	6.24%
LAMAR TX CONSOL INDEP SCH DIST LAMSCD 5.000 02/15/36	6.23%
RANDOM LAKE WI SCH DIST RLKSCD 5.000 03/01/30	6.16%
DESOTO TX INDEP SCH DIST DESSCD 5.000 08/15/39	6.14%

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.

Documents

Product Documents

Product Documents
Checkbox	Name	Download
Checkbox	Factsheet - Franklin Municipal Ladder 1-15 Year SMA	Download Document
Checkbox	Product Commentary - Franklin Municipal Ladder 1-15 Year SMA	Download Document
Checkbox	FTPPG Regulatory DisclosuresMailed hardcopies unavailable.	Download Document
Checkbox	Flyer - The Benefits of a Laddered Portfolio	Download Document
Checkbox	Snapshot - Franklin Municipal Ladders SMA	Download Document
Checkbox	Brochure - Franklin Municipal Bond Ladders	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. 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.

Important Information

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 1-15 Year Bond Index is a market value weighted index of investment-grade fixed-rate municipal bonds with maturities of 1-15 years.
Source: Bloomberg Indices.

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

Footnotes

The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products with at least a three-year history, and subject to change monthly. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total return, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total return. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings do not take into account the effects of sales charges and loads. Morningstar Rating is for the specified share class(es) only; other classes may have different performance characteristics.
©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.
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.
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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