Franklin Federal Limited-Term Tax-Free Income Fund

Fund Description

The fund 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 shareholders’ capital. The fund maintains a dollar-weighted average portfolio maturity of five years 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."

James Conn, CFA®, MBA

Management

James Conn, CFA, MBA

James Conn, CFA®, MBA

  • Joined Franklin Templeton in 1996
  • Managed Fund Since 2003
John Pomeroy, MBA

John Pomeroy, MBA

  • Joined Franklin Templeton in 1986
  • Managed Fund Since 2003

Rating

Overall Morningstar Rating As of 12/31/2017

Rating Category: Muni National Short

Morningstar
The fund's overall Morningstar Rating measures risk-adjusted returns and is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) rating metrics.

Historical Morningstar Rating As of 12/31/2017

Years Ratings Funds
in category
3
2 Stars
172
5
3 Stars
152
10
3 Stars
94

Morningstar Style Box

We do not publish a style box for this fund.

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, undervalued bonds.
  • We seek to buy and hold bonds until maturity.

Benefits

  • Monthly income exempt from federal income taxes i.
  • Portfolio diversification
  • Tenured investment team with expertise across market cycles

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.
  • 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

See Prospectus

How Financial Advisors Help You

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

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