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.

Investing In The Fund

What Are the Risks?

  • All investments involve risks, including possible loss of principal.
  • Because municipal bonds are sensitive to interest rate movements, the fund’s yield and share price will fluctuate with market conditions.
  • Bond prices generally move in the opposite direction of interest rates. Thus, as prices of bonds in the fund adjust to a rise in interest rates, the fund’s share price may decline.
  • Because the fund invests principally in a single state, it is subject to greater risk of adverse economic and regulatory changes in that state than a geographically diversified fund.
  • 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.
  • The fund may invest a significant part of its assets in municipal securities that finance similar types of projects, such as utilities, hospitals, higher education and transportation. A change that affects one project would likely affect all similar projects, thereby increasing market risk.

Minimum Investment

$1,000.00

How Financial Advisors Help You

Speak to your advisor about whether this fund is appropriate for you.

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