Download Franklin High Yield Tax-Free Income Fund Fact Sheet

Franklin High Yield Tax-Free
Income Fund
Tax-Free Income
June 30, 2017
Fund Fact Sheet | Share Classes: A, C
Fund Description
Performance
The fund seeks to provide a high current yield exempt
from federal income taxes. Its secondary goal is
capital appreciation to the extent possible and
consistent with the fund's principal investment goal.
Growth of a $10,000 Investment - Without Sales Charge (from 03/18/1986-06/30/2017)
Fund Overview
Class A:
$75,000
$65,297
$60,000
Total Value of
Investment, Including
Reinvestment of
Dividends and Capital
Gains
$45,000
Total Net Assets [All Share Classes] $7,424 million
$15,000
Share Class
A
C
CUSIP
354 723 702
354 723 595
NASDAQ
Symbol
FRHIX
FHYIX
Fund Management
John Wiley
Francisco Rivera
Daniel Workman, CFA
Years with
Years of
Firm Experience
27
27
22
23
13
14
Maximum Sales Charge
Class A: 4.25% initial sales charge
Class C: 1.00% contingent deferred sales charge
(CDSC) in the first year only
Total Annual Operating Expenses
Share Class
A
C
0.64%
1.19%
30-Day Standardized Yield
Share Class
A
C
2.32%
1.87%
Taxable Equivalent Yield
Share Class
A
C
4.10%
3.30%
Asset Allocation (%)
Fixed Income
Cash & Cash Equivalents
Equity
06/17
Share Class Information
Value of Initial
Investment:
09/09
$0
11/01
Number of Holdings
$30,000
01/94
3/18/1986
Monthly, on or near the last
business day
690
03/86
Fund Inception Date
Dividend Frequency
$10,270
Total Returns % (as of 6/30/2017)
CUMULATIVE
Share Class
A
With Sales Charge
Without Sales Charge
C
With Sales Charge
Without Sales Charge
AVERAGE ANNUAL
YTD
-1.29
3.07
1.73
2.73
1 Yr
-5.65
-1.49
-2.96
-2.02
3 Yrs
2.46
3.95
3.38
3.38
5 Yrs
2.65
3.56
2.99
2.99
Since
10 Yrs Inception
4.01
6.04
4.47
6.18
3.90
4.67
3.90
4.67
Inception
Date
3/18/1986
3/18/1986
5/1/1995
5/1/1995
Calendar Year Total Returns % – Without Sales Charge
Share Class
A
C
2016
1.15
0.57
2015
3.18
2.65
2014
13.87
13.35
2013
-6.73
-7.24
2012
11.08
10.40
2011
12.36
11.80
2010
2.81
2.30
2009
27.75
26.98
2008
-17.22
-17.68
2007
-0.11
-0.67
Share Class
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
A
7.45
5.44
6.88
7.97
5.15
5.92
5.77
-3.13
4.81
10.60
C
6.89
4.80
6.42
7.29
4.63
5.28
5.25
-3.66
4.19
10.09
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.
Fund Measures
AMT Exposure
Average Duration
Average Weighted
Maturity
Standard Deviation (3
Yrs) - Class A
6.37
5.45 Years
17.70 Years
3.67%
98.59
1.40
0.01
Franklin Templeton Distributors, Inc. One Franklin Parkway, San Mateo, CA 94403
tel: (800) DIAL BEN/342-5236 franklintempleton.com
Not FDIC Insured | May Lose Value | No Bank Guarantee
Franklin High Yield Tax-Free Income Fund
June 30, 2017
Composition of Fund
Sector
Utilities
Refunded
Transportation
Hospital & Health Care
General Obligation Bonds
Tax Supported Debt
Corporate Backed
Other Revenue Bonds
Subject to Government Appropriation
Other
% of Total
18.97
17.43
16.17
14.17
7.14
6.18
5.02
4.61
4.19
6.11
State / U.S. Territory Exposure
California
Texas
Florida
Illinois
New York
Michigan
New Jersey
Colorado
Puerto Rico
Other
% of Total
19.26
8.75
7.28
4.96
4.54
4.39
3.45
3.32
3.47
40.58
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. Investments in lower-rated bonds include higher risk of default and loss of principal. Puerto Rico municipal bonds have been impacted by recent
adverse economic and market changes, which may cause the fund’s share price to decline. 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 years of maturity, taking the possibility of early payments into account, for the underlying holdings.
Standard Deviation: A measure of the degree to which a fund's return varies from the average of its previous returns. The larger the standard deviation, the greater the likelihood (and risk) that a
fund's performance will fluctuate from the average return.
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.
Dividends are general subject to state and local taxes, if any. For investors subject to the alternative minimum tax, a small portion of fund dividends may be taxable. Distributions of capital gains may
be taxable.
Fund Management: CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
Performance: The fund offers other share classes subject to different fees and expenses, which will affect their performance.
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.
30-Day Standardized Yield: The fund’s 30-day standardized yield is calculated over a trailing 30-day period using the yield to maturity on bonds and/or the dividends accrued on stocks. 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 June 2017.
Composition of Fund: Percentage may not equal 100% due to rounding.
Uninvested cash is not included in the State / U.S. Territory Exposure table.
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© 2017 Franklin Templeton Investments. All rights reserved.
130 FF 06/17
UPD 11/17