Fund Description

The fund was incepted in September 1992 and is managed by Franklin Advisers. The main objective of the fund is to provide investors with a high 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 invests predominately in investment grade municipal securities with an average maturity of 3 to 10 years. The fund may also invest up to 35% of its total assets in municipal securities issued by U.S. territories. The fund offers dividends monthly. Capital gains, if any, are distributed annually.