Download Franklin Double Tax-Free Income Fund Fact Sheet

Tax-Free Income
March 31, 2016
Franklin Double Tax-Free Income
Fund
Fund Fact Sheet | Share Classes: A, C, Advisor
Fund Description
Performance
The fund normally invests at least 80% of its net
assets in securities whose interest is free from federal
and state personal income taxes. The fund focuses on
the municipal securities issued by U.S. territories, and
currently primarily invests in Puerto Rican municipal
securities.
Growth of a $10,000 Investment - Without Sales Charge (from 04/03/1985-03/31/2016)
Fund Overview
$49,345
$50,000
Total Value of
Investment, Including
Reinvestment of
Dividends and Capital
Gains
$37,500
$25,000
Number of Holdings
Share Class Information
CUSIP
354 723 603
354 723 611
354 724 106
Years with
Years of
Firm Experience
25
25
34
31
Maximum Sales Charge
Class A: 4.25% initial sales charge
Class C: 1.00% contingent deferred sales charge
(CDSC) in the first year only
Advisor Class: None
Total Annual Operating Expenses
Share Class
A
C
Advisor
0.76%
1.32%
0.67%
30-Day Standardized Yield
Share Class
A
C
Advisor
3.23%
2.82%
3.46%
Taxable Equivalent Yield
Share Class
A
C
Advisor
5.71%
4.98%
6.11%
Asset Allocation (%)
Fixed Income
Cash & Cash Equivalents
03/16
$0
Value of Initial
Investment:
$9,340
Total Returns % (as of 3/31/2016)
NASDAQ
Symbol
FPRTX
FPRIX
FDBZX
Fund Management
Carrie Higgins
Stella Wong
$12,500
07/08
4/3/1985
Monthly, on or near the last
business day
25
10/00
$144 million
01/93
Fund Inception Date
Dividend Frequency
04/85
Total Net Assets [All Share Classes]
Share Class
A
C
Advisor
Class A:
$62,500
95.98
4.02
CUMULATIVE
Share Class
A
With Sales Charge
Without Sales Charge
C
With Sales Charge
Without Sales Charge
Advisor
AVERAGE ANNUAL
YTD
-3.06
1.20
-0.05
0.95
1.22
1 Yr
-4.66
-0.48
-2.08
-1.13
-0.48
3 Yrs
-4.64
-3.24
-3.79
-3.79
-3.18
5 Yrs
0.60
1.47
0.89
0.89
1.56
Since
10 Yrs Inception
1.68
5.14
2.13
5.29
1.56
3.40
1.56
3.40
2.20
5.31
Inception
Date
4/3/1985
4/3/1985
5/1/1995
5/1/1995
4/3/1985
Calendar Year Total Returns % – Without Sales Charge
Share Class
A
C
Advisor
2015
-1.09
-1.54
-0.99
2014
10.24
9.62
10.33
2013
-17.31
-17.79
-17.29
2012
3.25
2.66
3.43
2011
11.75
11.20
11.84
2010
3.37
2.69
3.47
2009
23.06
22.42
23.22
2008
-12.97
-13.42
-12.97
2007
1.38
0.82
1.38
2006
5.18
4.59
N/A
Share Class
A
C
Advisor
2005
3.92
3.33
N/A
2004
5.12
4.63
5.12
2003
4.31
3.63
4.31
2002
9.26
8.73
9.26
2001
4.24
3.75
4.24
2000
10.18
9.58
N/A
1999
-2.34
-2.89
-2.34
1998
5.74
5.23
5.74
1997
8.75
8.13
8.75
1996
5.08
4.40
5.08
On April 4, 2016, Franklin Double Tax-Free Income Fund shareholders approved the fund's reorganization into Franklin
High Yield Tax-Free Income Fund. The fund reorganization is scheduled to be effective at close of market on or about
April 29, 2016.
Performance data represents past performance, which does not guarantee future results. Current performance may
differ from figures shown. The fund’s investment returns and principal values will change with market conditions, and
you may have a gain or a loss when you sell your shares. Please call Franklin Templeton at (800) DIAL BEN/(800)
342-5236 or visit franklintempleton.com for the most recent month-end performance.
If the sales charge had been included, the return would have been lower.
Top 5 Holdings (% of Total)
Fund Measures
Security Name
Guam Government Hotel Occupancy Tax Revenue, Refunding,
Series A, 6.50%, 11/01/40
Puerto Rico Commonwealth Highways and Transportation
Authority Highway Revenue, Series Y, Pre-Refunded, 5.50%,
7/01/36
Guam Power Authority Revenue, Refunding, Series A, 5.50%,
10/01/40
Guam Government Limited Obligation Revenue, Section 30,
Series A, 5.75%, 12/01/34
Puerto Rico Electric Power Authority Power Revenue, Series XX,
5.75%, 7/01/36
Franklin Templeton Distributors, Inc. One Franklin Parkway, San Mateo, CA 94403
tel: (800) DIAL BEN/342-5236 franklintempleton.com
8.86
8.46
7.93
6.73
AMT Exposure
4.82
Average Duration
4.78 Years
Average Weighted
18.60 Years
Maturity
Standard Deviation
7.69
(3 Yrs) - Class A
Beta (3 Yrs,
1.40
vs.Barclays Municipal
Bond Index) - Class A
6.65
Not FDIC Insured | May Lose Value | No Bank Guarantee
Franklin Double Tax-Free Income Fund
March 31, 2016
Composition of Fund
Franklin Double Tax-Free Income Fund
Sector
Utilities
Tax Supported Debt
Other Revenue Bonds
Refunded
Higher Education
Hospital & Health Care
Transportation
Housing
Subject to Government Appropriation
Cash & Cash Equivalents
% of Total
24.26
20.74
20.49
8.53
8.39
5.27
4.18
2.30
1.80
4.02
State / U.S. Territory Exposure
Guam
Virgin Islands
Puerto Rico
% of Total
38.09
12.54
49.37
What Are the Risks
All investments involve risks, including possible loss of principal. Because municipal bonds are sensitive to interest rate movements, the fund’s yield and share price will
fluctuate with market conditions. Bond prices generally move in the opposite direction of interest rates. Thus, as prices of bonds in the fund adjust to a rise in interest rates, the
fund’s share price may decline. Because the fund currently invests principally in Puerto Rico, it may be subject to greater risk of adverse economic and regulatory changes in
that territory than a geographically diversified fund. To the extent the fund has investments in other U.S. territories, adverse economic and regulatory changes in such territories
may cause the fund’s share price to decline. The fund is classified as a non-diversified fund, because it may invest a greater portion of its assets in the municipal securities of
one issuer than a diversified fund. Changes in the credit rating of a bond, or in the credit rating or financial strength of a bond’s issuer, insurer or guarantor, may affect the
bond's value. The fund may invest a significant part of its assets in municipal securities that finance similar types of projects, such as utilities, hospitals, higher education and
transportation. A change that affects one project would likely affect all similar projects, thereby increasing market risk.
Glossary
AMT Exposure: Percentage of a fund's assets invested in bonds with income subject to the alternative minimum tax (AMT). For investors subject to the alternative minimum tax, a small portion of fund
dividends may be taxable. Distributions of capital gains are generally taxable.
Average Duration: A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. Duration is expressed as a number of years.
Average Weighted Maturity: An estimate of the number of terms of maturity, taking the possibility of early payments into account, for the underlying holdings.
Beta: A measure of the fund's volatility relative to the market, as represented by the stated Index. A beta greater than 1.00 indicates volatility greater than the market.
Standard Deviation: A measure of risk; the larger the standard deviation, the greater the likelihood (and risk) that a fund's performance will fluctuate.
Important Information
Investors should carefully consider a fund’s investment goals, risks, charges and expenses before investing. To obtain a summary prospectus and/or prospectus, which
contains this and other information, talk to your financial advisor, call us at (800) DIAL BEN/342-5236 or visit franklintempleton.com. Please carefully read a prospectus before
you invest or send money.
Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change.
Indexes are unmanaged, and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges.
Performance: The fund offers other share classes subject to different fees and expenses, which will affect their performance. Advisor shares do not have sales charges or 12b-1 fees and are offered
only to certain eligible investors as stated in the prospectus.
Class A: On 5/1/94, these shares implemented a Rule 12b-1 plan, which affects subsequent performance. Class C: Prior to 1/1/04, these shares were offered with an initial sales charge; thus actual
returns would have differed.
Advisor: Effective 7/15/09, the fund began offering Advisor Class Shares. For periods prior to the fund's Advisor Class inception date, a restated figure is used based on the fund's oldest share class,
Class A performance, excluding the effect of Class A's maximum initial sales charge but reflecting the effect of the Class A Rule 12b-1 fees; and for periods after the fund's Advisor Class inception
date, actual Advisor Class performance is used, reflecting all charges and fees applicable to that class.
30-Day Standardized Yield: The 30-Day Standardized Yield reflects an estimated yield to maturity. It should be regarded as an estimate of the fund’s rate of investment income, and it may not equal
the fund’s actual income distribution rate, which reflects the fund’s past dividends paid to shareholders.
Taxable Equivalent Yield: The Taxable Equivalent Yield assumes the maximum regular federal income tax rate and the Medicare tax in effect on December 2015.
Top 5 Holdings: The portfolio manager for the fund reserves the right to withhold release of information with respect to holdings that would otherwise be included.
Composition of Fund: Percentage may not equal 100% due to rounding.
Uninvested cash is not included in the State / U.S. Territory Exposure.
franklintempleton.com
© 2016 Franklin Templeton Investments. All rights reserved.
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