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Systematically harvest losses with Franklin Tax Managed Municipal Bond Ladders

Systematic tax loss harvesting is a feature that automatically identifies and sells securities in your municipal SMA portfolio that have declined in value, generating capital losses that can offset your taxable gains. Unlike traditional municipal ladder SMA strategies that require you to manually request tax loss harvesting at the end of the year, our approach integrates this feature into the investment process, ensuring that you benefit from tax management opportunities throughout the year.

Systematic review of bonds

Our portfolio managers systematically review and sell bonds whose loss exceeds the predetermined thresholds. Thresholds are determined by expected transaction costs for a certain sized position.

Minimize cash on the sidelines

A tax loss sale on a municipal bond will be replaced with a similar bond so the investor can maintain their exposure and minimize uninvested cash in the portfolio.

Daily tax management

The process is executed daily, rather than as a year-end process, to identify sale candidates.

Franklin is a tax-free leader

40+

years of municipal experience1

30+

dedicated investment professionals1

$64B

in municipal bond assets under management1

Product offerings

We offer a full range of customizable, laddered strategies across the maturity and duration spectrum. We are committed to collaborating with you to address your clients' objectives including: risk profile, cash flow, investment flexibility and tax management goals.
 

  1-3 Years 1-7 Years 1-15 Years 5-20 Years
AMT exposure Excluded Excluded Excluded Excluded
Credit quality2 Minimum credit rating of A- Minimum credit rating of A- Minimum credit rating of A- Minimum credit rating of A-
Coupon income Choose to reinvest coupon income or receive cash Choose to reinvest coupon income or receive cash Choose to reinvest coupon income or receive cash Choose to reinvest coupon income or receive cash
Minimum initial investment $175K $175K $175K $250K
State availability3 National, 20 state-specific portfolios, 6 state preference National, 20 state-specific portfolios, 6 state preference National, 20 state-specific portfolios, 6 state preference National, 20 state-specific portfolios, 6 state preference
Number of bonds4 Minimum 4 bonds every rung, minimum 14 positions Minimum 2 bonds every rung, minimum 14 positions Minimum 1 bond every rung, minimum 15 positions Minimum 1 bond every rung, minimum 16 positions
Benchmark Bloomberg Municipal 1-3 Year Index Bloomberg Municipal 1-5 Year Blend Bloomberg Municipal 1-15 Year Index Bloomberg Municipal Bond Index
Fact sheet Franklin Municipal Ladder 1-3 Years – Tax Managed Franklin Municipal Ladder 1-7 Years – Tax Managed Franklin Municipal Ladder 1-15 Years – Tax Managed Franklin Municipal Ladder 5-20 Years – Tax Managed


Portfolio targets and characteristics subject to change.

 

Transitioning your clients’ accounts is easy

Franklin offers a range of services designed to assist you and your clients as they are considering SMAs.

Hypotheticals

We can provide an example of how the portfolios are allocated given variable parameters of maturity, account size and other customizations.

Municipal bond review

For clients with municipal bond holdings, we offer a detailed breakdown of their current municipal fixed income holdings, including analysis of maturity, quality and sector as they compare with our muni ladder portfolios.

After the review, our sales team we will coordinate a meeting with the Client Portfolio Managers and the SMA Specialist team to discuss a tailored transition plan for your client. The process is highly collaborative—we work directly with you to ensure a smooth transition.

Learn more about Franklin Tax Managed Municipal Bond Ladder SMAs

Our team is here to help you meet your clients' individual needs while helping your business be more efficient.

Additional resources

The benefits of a laddered portfolio

An overview of what bond ladders are, how they work, the benefits and the team overseeing these strategies.

Download

Tax managed municipal bond ladders

See how tax management is systematically built into our investment process.

Download

Municipal market perspectives

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On My Mind: 2025—Looking good, feeling good?

Even with the uncertainty surrounding the new US administration’s economic policies, Franklin Templeton Fixed Income CIO Sonal Desai thinks the US economic outlook for 2025 remains robust, with upside risks to inflation. She thinks the end of the Fed’s easing cycle might be near, and warns that financial markets volatility will likely remain elevated.

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Global Investment Management Survey

The November survey results are in from investment professionals across all asset classes, and we provide our predictions on inflation, recession, asset class performance and more for 2025.

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Global Investment Outlook 2025: Getting portfolios right

Following consecutive years of robust returns across global equity, fixed income and alternatives, can 2025 offer a repeat performance? Franklin Templeton Institute presents its 2025 outlook.

Ready to get started?

Call your Franklin Templeton Sales Representative at (800) DIAL-BEN / 342-5236.

1. As of March 31, 2024.

2. Ratings shown are assigned by one or more Nationally Recognized Statistical Rating Organizations (‘NRSRO’), such as Standard & Poor’s, Moody’s and Fitch. 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 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 ETFs and securities that only have a short-term rating and are not cash equivalents. Cash includes equivalents, which may be rated. All holdings are subject to change.

3. State-specific mandates include Arizona, California, Colorado, Connecticut, Florida, Louisiana, Massachusetts, Maryland, Michigan, Missouri, Minnesota, New Jersey, New York, North, Carolina, Ohio, Oregon, Pennsylvania, Texas, Utah and Virginia. State preference mandates include Alabama, Georgia, Hawaii, Indiana, Kentucky and South Carolina. Certain state-specific portfolios may not be available in all programs. Additional state-specific portfolios may be available upon request and are subject to review. Strategy availability may vary by firm. For those  strategies available at your firm, please contact your home office for details.

4. The number of bonds in a portfolio may vary by the timing of purchases and sales, changes in the purchase and sell list, general market conditions, and factors specific to each existing account due to client considerations. A concentration in a small number of holdings may increase risk exposure. Any decline in value of an individual bond may have a material impact on the account value.

What are the 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 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 LEGAL INFORMATION

Separately Managed Accounts (SMAs) are investment services provided by Franklin Templeton Private Portfolio Group, LLC (FTPPG), a federally registered investment adviser. Client portfolios are managed based on investment instructions or advice provided by one or more of the following Franklin Templeton affiliated sub-advisers: Western Asset Management, LLC. Management is implemented by FTPPG, the designated sub-adviser or, in the case of certain programs, the program sponsor or its designee.

This material is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. It does not constitute legal or tax advice.