Fund Description

The fund was incepted in October 1988 and is managed by Franklin Advisers. The objective of this fund is to provide investors with high level of income exempt from federal income taxes as is consistent with prudent investing, while seeking preservation of shareholders' capital. Each fund also tries to provide a maximum level of income exempt from personal income taxes, if any, for resident shareholders of that fund's state. The fund invests at least 80% of its total assets in securities that pay interest free from the personal income taxes, if any, of that fund's state. The fund offers dividends monthly. Capital gains, if any, are distributed annually.