Franklin Tennessee Municipal Bond Fund

PRICE AND YTD RETURN As of 05/24/2016

NAV down $-0.01 $11.45
POP $11.96
YTD Total return at Nav 2.48%

AVERAGE ANNUAL TOTAL RETURNS As of Quarter end 03/31/2016

Sales Charge

1 YEAR RETURN -1.60%
10 YEAR RETURN 3.64%


Investment Category Municipal Bonds
Distributions Monthly
CUSIP 354 025 405
Fund Number 420
Inception Date May 10, 1994
Total Net Assets (all share classes) As of 04/30/2016 $301.3 (M)
Distribution Rate at NAV As of 05/24/2016 3.46%
30-Day Standardized yield As of 04/30/2016 (updated monthly) 1.44%

SALES CHARGE, EXPENSES, & FEES As of 10/01/2015 (updated annually)

Gross Expense Ratio 0.72%
Net Expense Ratio 0.72%
Max Initial Sales Charge 4.25%
CDSC 0.00%
12b-1 Fee 0.10%

Fund Description

The Fund invests mainly in investment grade Tennessee municipal securities.

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."

Francisco Rivera


Francisco Rivera

Francisco Rivera

  • Joined Franklin Templeton in 1994
  • Managed Fund Since 1996
Daniel Workman, CFA

Daniel Workman, CFA®

  • Joined Franklin Templeton in 2003
  • Managed Fund Since 2013

Overall Morningstar Rating As of 04/30/2016

Rating Category: Muni Single State Long

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 04/30/2016

Years Ratings Funds
in category
2 Stars
2 Stars
3 Stars

Morningstar Style Box

We do not publish a style box for this fund.

Strategy, Benefits, Results


  • 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 buy and hold for the long term.


  • Monthly income exempt from federal income taxes and Tennessee personal 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.
  • Yield and share price will fluctuate with market conditions due to municipal bonds’ sensitivity to interest-rate movements.
  • Bond prices generally move in the opposite direction of interest rates, thus the fund’s share price may decline as the prices of bonds adjust to a rise in interest rates.
  • Investments concentrated in a single state are subject to greater risk of adverse economic and regulatory changes in that state than a geographically diversified fund.
  • The fund holds a small portion of its assets in Puerto Rico municipal bonds that have been impacted by recent adverse economic and market changes, which may cause the fund’s share price to decline.
  • These and other risk considerations are discussed in the fund’s prospectus.

Minimum Investment


How Financial Advisors Help You

Speak to your financial advisor about whether this fund is appropriate for you. If you don't have a financial advisor, request a referral.

You need Adobe Acrobat Reader 6.0 or higher to view and print PDF documents. Download a free version from Adobe's website.