Fund Description

The fund was incepted in October 1983 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 investment management and preservation of shareholder's capital. The fund invests at least 80% of its total assets in investment grade municipal securities whose interest is free from federal income taxes, including the federal alternative minimum tax. Although the fund tries to invest all of its assets in tax-free securities, it is possible that up to 20% of its assets may be in tax-free securities that pay interest that may be subject to the federal alternative minimum tax and, although not anticipated, in securities that pay taxable interest. The fund offers dividends monthly. Capital gains, if any, are distributed annually.