Fund Description

The fund was incepted in September 1987 and is managed by Franklin Advisers. The main objective of the fund is to provide investors with a high a level of income exempt from federal income taxes as is consistent with prudent investing, while seeking preservation of shareholders' capital. 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 manager selects securities that it believes will provide the best balance between risk and return within a fund's range of allowable investments and typically uses a buy and hold strategy. The fund offers dividends monthly. Capital gains, if any, are distributed at least annually.